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 Six-Month Period Ended September 30, 2021 (IFRS)Tokyo, November 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

Six-month period ended
September 30, 2021
Six-month period ended
September 30, 2020

Six-month period ended
September 30, 2021
Six-month period ended
September 30, 2020

Incomebefore income tax

Net income
AmountAmount%Amount%¥2,983,504

13.4¥1,046,971 (27.4)¥2,630,531

3.6¥1,441,472

22.9

Net income
attributable toowners of the parent%

Amount%Amount¥590,125 (68.6)¥363,569 (80.7)¥1,879,377 253.1¥1,883,211 346.7

Basic earnings per
share (Yen)

Diluted earnings per
share (Yen)¥202.46¥195.62¥950.54¥903.06

Total
comprehensive
income%¥892,161 (42.9)¥1,562,319

Note:* Net sales and income before income tax are presented based on the amounts from continuing operations only.

(2) Financial Position
Total assets

Total equity

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

As of September 30, 2021

¥46,220,788¥12,339,470¥10,548,562

22.8

As of March 31, 2021

¥45,750,453¥11,955,593¥10,213,093

22.3

-

2.

Dividends
Dividends per shareFirst quarter
Fiscal year ended
March 31, 2021
Fiscal year ending
March 31, 2022

Second quarter

Third quarter

Fourth quarter

Total

(Yen)

(Yen)

(Yen)

(Yen)

(Yen)

-

22.00

-

22.00

44.00

-

22.00
-

22.00

44.00

Fiscal year ending
March 31, 2022 (Forecasted)

Notes:
1. On October 21, 2021, the Company announced that the interim dividend for the fiscal year ending March 31, 2022 was determined
under the resolution passed at the Board of Directors meeting held on the same date.
2. Revision of the latest forecasts on the dividends: No* Notes(1) Significant changes in scope of consolidation (changes in scope of consolidation of specified subsidiaries): Yes
Newly consolidated: None
Excluded from consolidation: One entity: Boston Dynamics, Inc.
Notes:
1. Please refer to page 55 “(1) Significant Changes in Scope of Consolidation for the Six-Month Period Ended September 30,
2021” 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] Changes in accounting policies other than those in [1]: No[3] Changes in accounting estimates: Yes
Please refer to page 55 “(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 September 30, 2021:
As of March 31, 2021:[2]

Number of shares of treasury stock:
As of September 30, 2021:
As of March 31, 2021:[3]

1,722,953,730 shares
2,089,814,330 shares
9,337,361 shares351,297,587 shares

Number of average shares outstanding during six-month period (April-September):
As of September 30, 2021:

1,718,003,004 shares

As of September 30, 2020:

1,965,237,924 shares* This condensed interim consolidated financial report is not subject to interim review procedures by certified public
accountants or an audit firm.
* Note to forecasts on the consolidated results of operations and other items
Descriptions regarding the future are estimated based on the information that the Company is able to obtain at the present point intime and assumptions which are deemed to be reasonable. However, actual results may be different due to various factors.
On November 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 Six-Month Period Ended September 30, 2021

(Appendix)

Contents
1. Results of Operations.......................................................................................................................................... P.4(1) Overview of Results of Operations .............................................................................................................. P.4
a. Consolidated Results of Operations............................................................................................................ P.5
b. Results by Segment .................................................................................................................................... P.8(a) Investment Business of Holding Companies Segment ........................................................................ P.9(b) SoftBank Vision Funds Segment ....................................................................................................... P.18
(c) SoftBank Segment ............................................................................................................................. P.30(d) Arm Segment ..................................................................................................................................... P.31(e) Latin America Funds Segment........................................................................................................... P.37(f) Other................................................................................................................................................... P.39
(2) Overview of Financial Position .................................................................................................................. P.40
(3) Overview of Cash Flows ............................................................................................................................ P.50
(4) Forecasts ..................................................................................................................................................... P.53
2. Notes to Summary Information ......................................................................................................................... P.55
(1) Significant Changes in Scope of Consolidation for the Six-Month Period Ended September 30, 2021 ......... P.55
(2) Changes in Accounting Estimates ............................................................................................................... P.55
3. Condensed Interim Consolidated Financial Statements and Primary Notes ...................................................... P.56
(1) Condensed Interim Consolidated Statement of Financial Position.............................................................. P.58
(2) Condensed Interim Consolidated Statement of Income
and Condensed Interim Consolidated Statement of Comprehensive Income ............................................. P.60
(3) Condensed Interim Consolidated Statement of Changes in Equity ............................................................. P.64
(4) Condensed Interim Consolidated Statement of Cash Flows ........................................................................ P.68
(5) Significant Doubt about Going Concern Assumption ................................................................................. P.70
(6) Notes to Condensed Interim Consolidated Financial Statements ................................................................ P.70
Disclaimer
This material does not constitute an offer to sell, or a solicitation of an offer to buy, limited partnership interests or comparable limited
liability equity interests in any funds (including SoftBank Vision Fund 1, SoftBank Vision Fund 2, and SoftBank Latin America
Funds) managed by any of the subsidiaries of SBG including SB Global Advisers Limited, SB Investment Advisers (UK) Limited,
SBLA Advisers Corp. or their respective affiliates, or any securities in any jurisdiction, nor should it be relied upon as such in any
way.
Notice Regarding PFIC Status
It is possible that SBG and certain subsidiaries of SBG may be a “passive foreign investment company” (“PFIC”) under the U.S.
Internal Revenue Code of 1986, as amended, for its current fiscal year due to the composition of its assets and the nature of its income.
For the fiscal year ended March 31, 2021, we believe that SBG and certain subsidiaries of SBG were PFICs. We recommend that
U.S. holders of SBG’s shares consult their tax advisors with respect to the U.S. federal income tax consequences to them if SBG and
its subsidiaries are classified as PFICs. SBG is not responsible for any tax treatments or consequences thereof with respect to U.S.
holders of SBG’s shares.

1

SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 30, 2021

Definition of Company Names and Abbreviations Used in This Appendix
Company names and abbreviations used in this appendix, unless otherwise stated or interpreted differently in thecontext, are as follows:
Company names / Abbreviations

Definition

SoftBank Group Corp. or SBG
SoftBank Group Corp. (stand-alone basis)
The Company
SoftBank Group Corp. and its subsidiaries*Each of the following names or abbreviations indicates the respective company and its subsidiaries, if any.
SB Northstar
SB Northstar LP
SoftBank Vision Fund 1 or SVF1 SoftBank Vision Fund L.P. and its alternative investment vehicles
SoftBank Vision Fund 2 or SVF2 SoftBank Vision Fund II-2 L.P. and its alternative investment vehicles
SVF2 LLC
SVF II Investment Holdings LLC
SBIA
SB Investment Advisers (UK) Limited
SBIA USSB Investment Advisers (US) Inc.
SBGASB Global Advisers Limited
SoftBank Latin America Fund 1 or SBLA Holdings (Cayman) L.P. and SBLA Latin America Fund (Cayman)
SBLAF1*1
L.P.
SoftBank Latin America Fund 2 or SBLA Holdings II DE LLC
SBLAF2*1
Arm
Arm Limited
Alibaba
Alibaba Group Holding Limited
MgmtCoMASA USA LLC
The first quarter
Three-month period ended June 30, 2021
The second quarter
Three-month period ended September 30, 2021
The period
Six-month period ended September 30, 2021
The second quarter-end
September 30, 2021
The fiscal year
Fiscal year ending March 31, 2022
The previous fiscal year
Fiscal year ended March 31, 2021
The previous fiscal year-end
March 31, 2021
Note:
1. SoftBank Latin America Fund 1 and SoftBank Latin America Fund 2 are collectively referred to as SoftBank Latin America Funds.

Exchange Rates Used for Translations
Fiscal year ended March 31, 2021
USD / JPY
Average rate for the quarter

Fiscal year ending
March 31, 2022

Q1

Q2

Q3

Q4

Q1

Q2

¥107.74¥105.88¥104.45¥106.24¥110.00¥110.47

Rate at the end of the period¥110.71¥111.92

CHANGES IN PRESENTATION OF CONSOLIDATED STATEMENT OF INCOME AND REPORTABLE
SEGMENTS
Establishment of the Latin America Funds Segment
Latin America Funds, which were previously included within “Other,” are newly presented as an independent reportable segment from the first quarter in light of their greater financial importance. In line with this, “gain (loss) on
investments at Latin America Funds,” which was previously included in “gain (loss) on other investments” in the2SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 30, 2021

Consolidated Statement of Income is newly presented as an independent item. Information for the same period of theprevious fiscal year has been reclassified and presented accordingly. See “OVERVIEW” under “(e) Latin America
Funds Segment” in “b. Results by Segment” in “(1) Overview of Results of Operations” in “1. Results of Operations”.

3SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 30, 2021

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

1. Highlights of results
 Loss on investments of ¥395.2 billion- ¥279.9 billion investment gain at Investment Business of Holding Companies: Gain relating to sales of TMobile shares of ¥3.1 billion, unrealized gain on valuation of investments of ¥16.1 billion related to TMobile shares, derivative gain of ¥58.0 billion resulting from the fair value increase of the Contingent
Consideration, and gain on investments in listed stocks, etc. of ¥68.2 billion were recorded.
- ¥879.2 billion investment loss at SVF1, SVF2, and others· SVF1: Realized gain (net) of ¥757.2 billion due to partial exits of listed portfolio companies, etc.
Unrealized gain on valuation (net) totaled ¥784.8 billion for unlisted portfolio companies while
unrealized loss on valuation (net) totaled ¥1,421.7 billion for listed portfolio companies, mainly due toa loss of ¥1,212.2 billion for Coupang.
· SVF2 recorded realized gain of ¥105.3 billion and unrealized loss on valuation (net) of ¥10.0 billion.
- ¥193.7 billion investment gain at Latin America Funds: Unrealized gain on valuation (net) was recorded
due to an increase in the fair value of investments.
 Income before income tax of ¥1,047.0 billion (decrease of ¥394.5 billion yoy)
Recorded finance cost of ¥185.6 billion and derivative gain (excluding gain (loss) on investments) of¥621.0 billion, which was mainly related to prepaid forward contracts using Alibaba shares.
 Net income attributable to owners of the parent of ¥363.6 billion (decrease of ¥1,519.6 billion yoy)
Net income from discontinued operations of ¥710.5 billion was recorded in the same period of the previous
fiscal year, primarily reflecting a gain relating to loss of control of Sprint.
2. Status of investment activities
 Investment Business of Holding Companies
Sold 45.4 million T-Mobile shares to Deutsche Telekom upon Deutsche Telekom’s exercise of call
options and received 225 million Deutsche Telekom shares as consideration.
 SVF1: Further progress with public listings and monetization of investments- Investments: Made investments totaling $2.5 billion in the period.
- Portfolio: Held 81 investments (including 15 listed portfolio companies) as of the second quarter-end.
Four companies were newly listed in the period.
- Monetization: SVF1 distributed the proceeds mainly from the partial sale and monetization of
investments in the period, of which the Company received $5.5 billion.
 SVF2: Steady progress in investment activities- Investments: SVF2 made new and some follow-on investments for a total of $27.2 billion in the period,
bringing the fund’s total cost to $33.5 billion.
- Portfolio: Held 157 investments (including eight listed portfolio companies) as of the second quarterend. Five companies were newly listed in the period.
- Monetization: SVF2 distributed the proceeds mainly from the partial sale and monetization of
investments, of which the Company received $3.2 billion.
 SoftBank Latin America Funds
The funds made new and follow-on investments totaling $2.3 billion in the period, including newinvestments in 25 companies and follow-on investments in existing portfolio companies. As of thesecond quarter-end, the funds held 61 investments.*1
3. Procured funds in a flexible and disciplined manner to meet funding needs for debt repayment andnew investments while managing SBG’s LTV1 below 25%- The Company issued domestic hybrid bonds of ¥405.0 billion, domestic subordinated corporate bondsof ¥500.0 billion, and foreign currency-denominated straight corporate bonds of $3.85 billion and €2.95
billion, getting on track to refinancing its corporate bonds to be mature during the fiscal year. In
September, the Company redeemed domestic hybrid bonds of ¥455.6 billion early.
- The Company raised $6.83 billion (net) through prepaid forward contracts using Alibaba shares, as aresult of execution of new contracts and rolling over and early termination of the existing contracts.
Note:
1. Includes one investment accounted for as a subsidiary of the Company.

4SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 30, 2021

a. Consolidated Results of Operations(Millions of yen)Six months ended September 30
2020
2021
Continuing operations
Net sales
Gross profit

ChangeChange %2,630,531
1,419,812

2,983,504
1,635,033

352,973
215,221

13.4% A
15.2%

579,614279,928(299,686)(51.7%) B

1,336,638
63,46853,591(879,186)
193,698
10,325(2,215,824)
130,230(43,266)- C
205.2% D(80.7%)

Total gain (loss) 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 andSVF2Other gain
Income before income tax

2,033,311(1,011,301)(153,808)
200,830(395,235)(1,186,672)(185,599)
265,331(2,428,546)(175,371)(31,791)
64,501

17.3% E
20.7% F
32.1% G

(761,557)

620,959

1,382,516- H(457,537)
171,722
1,441,472

195,179
97,975
1,046,971

652,716(73,747)(394,501)(42.9%)(27.4%)

Income taxes
Net income from continuing operations(272,282)
1,169,190(456,846)
590,125(184,564)(579,065)

67.8% I
(49.5%)

Discontinued operations
Net income from discontinued operations

710,187-(710,187)- J

Net income
Net income attributable to owners of the parent

1,879,377
1,883,211

590,125
363,569(1,289,252)(1,519,642)(68.6%)(80.7%)

Total comprehensive income
Comprehensive income attributable to owners of
the parent

1,562,319

892,161(670,158)(42.9%)

1,563,669

664,724(898,945)(57.5%)

Gain on investments
Gain on investments at Investment Businessof Holding Companies
Gain (loss) on investments at SVF1, SVF2,
and others
Gain on investments at Latin America Funds
Gain on other investments

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

Investment gain of ¥279,928 million was recorded. The Company recorded gain relating to sales of T-Mobile shares(T-Mobile US, Inc. after merging with Sprint Corporation) of ¥3,149 million, unrealized gain on valuation of5SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 30, 2021

¥16,065 million related to T-Mobile shares, and derivative gain of ¥57,980 million associated with an increase in
the fair value of the right to acquire T-Mobile shares for no additional consideration if certain conditions are met(the “Contingent Consideration”), as well as gain on investments of ¥68,196 million from investments in listed
stocks and other instruments. See “(a) Investment Business of Holding Companies Segment” under “b. Results by
Segment” for details.
C Loss on Investments at SVF1, SVF2, and Others

Investment loss of ¥879,186 million was recorded. SVF1 recorded realized gain on investments (net) of ¥757,217
million mainly as a result of sales2 of entire and partial shareholding positions of its certain investments. SVF1
recorded unrealized loss on valuation (net) totaling ¥1,421,695 million for listed portfolio companies. This was due
to a loss of ¥1,890,737 million recorded for 13 portfolio companies, including a loss of ¥1,212,241 million recorded
for Coupang, Inc. (“Coupang”) and ¥321,016 million recorded for DiDi Global Inc. (“DiDi”), while a gain of¥469,041 million was recorded for two companies including DoorDash, Inc. (“DoorDash”). On the other hand, forunlisted portfolio companies, SVF1 recorded unrealized gain on valuation (net) of ¥784,808 million mainly reflecting an increase in fair values of certain portfolio companies.
SVF2 recorded realized gain on investments of ¥105,305 million mainly as a result of the partial sale of its
investment in KE Holdings Inc. (“KE Holdings”). SVF2 recorded unrealized loss on valuation (net) of ¥9,956 million, mainly due to a decline in the share price of KE Holdings despite an increase in the fair value of unlisted
portfolio companies that are expected to be listed. See “(b) SoftBank Vision Funds Segment” under “b. Results by
Segment” for details.
D Gain on Investments at Latin America Funds

Gain on investments at Latin America Funds was ¥193,698 million. SoftBank Latin America Fund 1 recorded unrealized gain on valuation of investments (net) totaling ¥201,954 million due to an increase in the share price of
VTEX, as well as increases in the fair value of unlisted portfolio companies, including Kavak Holdings Limited
and QUINTOANDAR, LTD. See “(e) Latin America Funds Segment” under “b. Results by Segment” for details.

Primarily as a result of B through D, total loss on investments was ¥395,235 million.
E Selling, General and Administrative Expenses

Selling, general and administrative expenses increased by ¥195,761 million in the SoftBank segment. This mainlyreflected the impact of the consolidation of LINE Corporation and increases in sales commissions and sales promotion expenses at SoftBank Corp. and Yahoo Japan Corporation.
F Finance Cost

Interest expenses increased by ¥30,240 million in the Investment Business of Holding Companies segment. This
mainly reflected increases in interest expenses at SBG3 and SB Northstar.

6

SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 30, 2021

G Income on Equity Method Investments

Income on equity method investments related to Alibaba was ¥277,273 million,4 an increase of ¥109,505 million
year on year. A loss was recorded for Alibaba in the same period of the previous fiscal year mainly due to therecording of an investment loss on its 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.
Alibaba recorded an expense for the three-month period ended March 31, 2021 for the fine levied by China’s
State Administration for Market Regulation pursuant to China’s Anti-Monopoly Law. The Company had alreadyrecorded the expense in the fourth quarter of the previous fiscal year as a significant event during the applicable
period on a three-month time lag.
H Derivative Gain (Excluding Gain (Loss) on Investments)

Derivative gain of ¥625,116 million was recorded in connection with prepaid forward contracts using Alibaba shares
entered into in the fiscal years ended March 31, 2020 and March 31, 2021, as well as in the period.
Within derivative gain (loss), gains and losses related to investing activities, such as the acquisition and sale ofshares, are included in “gain (loss) on investments.” For example, this applies to derivative gains and losses arisingfrom long call options of listed stocks held by asset management subsidiaries. Conversely, those related non-investing activities, particularly gains and losses arising from derivatives used in fund procurement, are included in “derivative gain (loss) (excluding gain (loss) on investments).” For example, this applies to derivative gains and losses
related to prepaid forward contracts using Alibaba shares and T-Mobile shares. However, in cases where the prepaid
forward contracts are settled using shares rather than cash, gains and losses arising from the reversal of derivative
financial assets or derivative financial liabilities at settlement are included in “investment gain (loss)” as part ofgain (loss) relating to settlement of prepaid forward contracts using shares.
Primarily as a result of A through H, income before income tax was ¥1,046,971 million, a decrease of ¥394,501
million (27.4%) year on year.
I

Income Taxes

Income taxes were recorded at SoftBank Corp. and at Yahoo Japan Corporation. Meanwhile, deferred tax expenses
were recorded due to recording derivative gain related to prepaid forward contracts using Alibaba shares.
J Net Income from Discontinued Operations

In the same period of the previous fiscal year, the Company recorded a gain of ¥721,404 million relating to loss ofcontrol of Sprint Corporation in connection with Sprint Corporation ceasing to be a subsidiary of the Company,
following the completion of the merger between Sprint Corporation and T-Mobile US, Inc.
Primarily as a result of A through J, net income attributable to owners of the parent was ¥363,569 million, adecrease of ¥1,519,642 million (80.7%) year on year.

7SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 30, 2021

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. In the first quarter, “Latin America Funds segment” was newly
established. In the second quarter, “SoftBank Vision Funds segment” was renamed from “SVF1 and Other SBIAManaged Funds segment” due to change in the manager of SVF2 to SBGA. As of the second quarter-end, there are
five reportable segments: Investment Business of Holding Companies, SoftBank Vision Funds, SoftBank, Arm, andLatin America Funds.
The following is a summary of the reportable segments.
Segments

Main businesses

Core companies

Reportable segments
Investment Business · Investment activities by SBG and its subsidiarof HoldingiesCompanies

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

SoftBank Vision
Funds· Investment activities by SVF1 and SVF2

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

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

SoftBank Corp.
Z Holdings Corporation
Yahoo Japan Corporation
LINE Corporation

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

Arm Limited

Latin America
Funds· Investment activities by SoftBank Latin
America Fund 1 and SoftBank Latin America
Fund 2

SBLA Advisers Corp.
SBLA Latin America Fund
(Cayman) L.P.
SBLA Holdings (Cayman) L.P.
SBLA Holdings II DE LLC· Smartphone payment business

PayPay Corporation· Alternative investment management business

Fortress Investment Group LLC· Fukuoka SoftBank HAWKS-related businesses

Fukuoka SoftBank HAWKS Corp.

Other

8

SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 30, 2021

(a) Investment Business of Holding Companies Segment
1. Segment income was ¥1.0 trillion, as a result of recording ¥279.7 billion gain on investments and¥623.9 billion derivative gain (excluding gain (loss) on investments) related to prepaid forward
contracts using Alibaba shares
2. Recorded ¥68.0 billion*1 investment gain in listed stocks and other instruments (total investment
gains and losses of SBG and SB Northstar)
Note:
1. Includes an impact of investment by SB Northstar in Special Purpose Acquisition Companies (SPACs) controlled by SBIA
US, which is eliminated in consolidation.

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, SoftBank Group Capital Limited (“SBGC”), SoftBank Group Japan Corporation (“SBGJ”), asset management subsidiary SB Northstar, and certain other subsidiaries
engaged in investment and financing 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 but does
not include 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 and TMobile as well as investees of SB Northstar. They are either equity method associates (such as Alibaba) or investments classified as financial assets at FVTPL. Regarding 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.”
Investment in listed stocks and other instruments by asset management subsidiaries
Since the first quarter of the previous fiscal year, the Company has been investing in highly liquid listed stocks
to diversify its assets and manage surplus funds, while being firmly committed to its stated financial policies.
These investments were made by SBG in the first quarter of the previous fiscal year, but from the second quarterof the previous fiscal year, asset management subsidiary SB Northstar has been acquiring and selling listed
stocks and other instruments and engaging in derivative and credit transactions related to listed stocks. The scaleof its investments in listed stocks and other instruments fluctuates depending on SBG’s funding needs, cash on
hand, and the status of the assets held by SBG.
SBG indirectly holds 67% and SBG’s Representative Director, Corporate Officer, Chairman & CEO Masayoshi Son indirectly holds 33% of interests in SB Northstar. Masayoshi Son’s interest is deducted from thegains and losses on investments at SB Northstar as a non-controlling interest; therefore, 67% of the gains andlosses on investments impacts net income attributable to owners of the parent. Furthermore, if, at the end of thefund life (12 years + 2-year extension), SB Northstar has any unfunded repayment obligations to SBG, Masayoshi Son will pay his pro rata share of any such unfunded obligations based upon his relative ownership
percentage of SB Northstar.

9

SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 30, 2021

FINANCIAL RESULTS(Millions of yen)Six months ended September 30
2020
2021
Gain on investments at Investment Business of
Holding Companies
Gain relating to sales of T-Mobile shares
Realized gain (loss) on investments at asset
management subsidiaries
Unrealized loss on valuation of investments at
asset management subsidiaries
Derivative gain (loss) on investments at
asset management subsidiaries
Realized gain (loss) on investments
Unrealized gain on valuation of investments
Change in valuation for the fiscal year
Reclassified to realized gain (loss) recorded in
the past fiscal year*1
Derivative gain on investments
Effect of foreign exchange translation
Other
Selling, general and administrative expenses
Finance cost
Income on equity method investments
Derivative gain (loss)(excluding gain (loss) on investments)
Other gain
Segment income (income before income tax)

Change Change %579,614279,688(299,926)(51.7%) A

421,755

3,149(418,606)(99.3%)(8,060)62,951

71,011-(95,082)(80,019)

15,063-(292,346)
163,621234,573

76,185(336,667)
462,152

368,531(500,288)
227,579

97.0%

235,859

56,617(179,242)(76.0%)(1,286)
151,690
3,463(52,922)(108,175)
194,607405,535
68,49911,233
12,205(46,184)(138,415)
266,989

406,821(83,191)
11,233
8,742
6,738(30,240)
72,382(54.8%)
252.4%(12.7%)
28.0% B
37.2% C(762,417)
174,641

623,897
30,078

1,386,314(144,563)- D(82.8%)

25,3481,016,053

990,705-

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

A Gain on investments at Investment Business of Holding Companies: ¥279,688 million· Gain relating to sales of T-Mobile shares of ¥3,149 million was recorded in conjunction with a partial sale of TMobile shares in September 2021. See “Partial Sale of T-Mobile Shares in September 2021” for details of thesale transaction. Cumulative losses pertaining to the 45.4 million T-Mobile shares that were the subject of thissale transaction were ¥13,447 million. This is the difference between the fair value of the 45.4 million shares asof June 26, 2020, when T-Mobile was excluded from the Company's equity method associates, and the fair valueof the 225.0 million Deutsche Telekom shares received as consideration upon completion of such sale transaction.
· Realized gain on investments at asset management subsidiaries of ¥62,951 million and unrealized loss on valuation of investments at asset management subsidiaries of ¥80,019 million were recorded. This was a result ofinvestments in listed stocks and other instruments by SB Northstar.
· Derivative gain on investments at asset management subsidiaries of ¥76,185 million was recorded. This was
mainly due to recording gains related to long call options on listed stocks at SB Northstar.

10

SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 30, 2021

· Realized loss on investments of ¥336,667 million and unrealized gain on valuation of investments of ¥462,152
million were recorded. This was mainly due to the sale of shares of a wholly owned subsidiary that held theshares of WeWork Inc. (“WeWork”) from SBG to SVF2. The Company recorded a total realized loss of ¥458,716
million from the sale, while also reclassifying an aggregate of ¥478,059 million of unrealized losses on the valuation of investments recorded in prior fiscal years as a realized gain (gains and losses related to the sale are
eliminated in consolidation as an intercompany transaction). A cumulative loss incurred at Investment Businessof Holdings Companies segment from the acquisition of the WeWork shares to the sale of the shares totaled¥636,135 million ($5,924 million), which is the sum of the abovementioned investment gains and losses andgains and losses related to investments accounted for using the equity method. In addition, change in valuation
for the fiscal year recorded as unrealized gain on valuation of investments included unrealized gain on valuationof ¥16,065 million related to investments in T-Mobile.
· Derivative gain on investments of ¥68,499 million was recorded. This was mainly due to the recording of a
derivative gain resulting from an increase of ¥57,980 million in the fair value of the Contingent Consideration
related to T-Mobile shares.
B

Finance cost: ¥138,415 million (increase of ¥30,240 million year on year)

Interest expenses increased by ¥21,877 million year on year at SBG3 to ¥129,718 million and by ¥8,045 million
to ¥8,407 million at SB Northstar. The increase at SBG was mainly due to an increase in interest-bearing debt
resulting from the issuance of bonds and borrowings made through a margin loan. The increase at SB Northstar
was mainly due to the short-term borrowings for the purpose of acquiring listed stocks that were made following
the commencement of its business in the second quarter of the previous fiscal year.
C

Income on equity method investments: ¥266,989 million (increase of ¥72,382 million year on year)

Income on equity method investments related to Alibaba was ¥277,273 million, an increase of ¥109,505 million
year on year. A loss on investment was recorded for Alibaba in the same period of the previous fiscal year mainly
due to recording of investment loss on its 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.
Alibaba recorded an expense for the three-month period ended March 31, 2021 for the fine levied by China’s
State Administration for Market Regulation pursuant to China’s Anti-Monopoly Law. The Company had alreadyrecorded the expense in the fourth quarter of the previous fiscal year as a significant event during the period on athree-month time lag.
D Derivative gain (excluding gain (loss) on investments): ¥623,897 million
Derivative gain of ¥625,116 million was recorded in connection with the prepaid forward contracts using Alibaba
shares entered into in the fiscal years ended March 31, 2020 and March 31, 2021, as well as in the period.

11SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 30, 2021

Partial sale of T-Mobile shares in September 2021
On September 6, 2021, the Company entered into a master framework agreement (the “Agreement”) with
Deutsche Telekom AG (“Deutsche Telekom”), pursuant to which Deutsche Telekom agreed to partially exercise
its right to acquire the shares of T-Mobile US, Inc. (“T-Mobile”) in accordance with the terms of the fixed andfloating call options (“Deutsche Telekom Call Options”) granted by the Company to Deutsche Telekom in June
2020, and to amend certain execution conditions associated with the floating call options. Following the exerciseof Deutsche Telekom Call Options, the Company sold 45,366,669 of its 106,291,623 T-Mobile shares to
Deutsche Telekom and received 225,000,000 Deutsche Telekom shares (the reference price: €20 per share;
4.5% of Deutsche Telekom’s outstanding shares) as consideration. Under the Agreement, Deutsche Telekom
also provided its consent for the Company to have additional flexibility to pledge its T-Mobile shares in connection with the entry into margin loans and other monetization transactions and agreed that it will prioritize
the use of cash proceeds from certain divestitures to exercise additional Deutsche Telekom Call Options forcash up to an aggregate of $2.4 billion of the total exercise price, subject to certain conditions. Following entry
into the Agreement, the Company carried out the following monetization transactions using T-Mobile shares.

ProcuredamountExecution
timing$4.4 billion

Jul 2020

Transaction

Borrowing made using 106,291,623 T-Mobile shares pledged as collateral (margin
loan)
Number of shares held as of June 30, 2021
b Fund procurement through prepaid forward
contracts using 17,935,000 T-Mobile
sharesc Borrowing made using 42,989,954 T-Mobile shares pledged as collateral (marginloan)
d Repayment of borrowings in “a” using
funds acquired in “b” and “c”
e 60-day loan using 45,366,669 T-Mobile
shares pledged as collateral (bridge loan)
f Sale of 45,366,669 T-Mobile shares to
Deutsche Telekom, receiving 225,000,000
Deutsche Telekom shares as consideration
Number of shares held as of September 30, 2021

Number of shares held
T-Mobile Deutsche Telsharesekom shares(millions)(millions)

a

106.3

-

(45.4)
60.9

225.0
225.0

$1.8 billion$2.6 billion
Sep 2021$(4.4) billion$1.3 billion-

As described above, the Company plans to sell an additional approximately 20 million shares of the
60,924,954 T-Mobile shares continued to be held through Deutsche Telekom’s exercise of additional Deutsche
Telekom Call Options for cash using its proceeds from certain divestitures for up to $2.4 billion of total exercise
price. Approximately half of these proceeds will be used to repay the proportional margin loan which theseshares underlie.

12SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 30, 2021

T-Mobile shares held by the Company

A
B

C
D
E
F
G

Number of shares held as of September 30, 2021
Approximate number of shares planned for
additional sale to Deutsche Telekom as
described above*2
Number of shares held after the additional sale((A) – (B))
Number of shares within C subject to theDeutsche Telekom Call Options
Number of shares held after all the Deutsche Telekom Call Options are exercised ((C) – (D))
Number of shares eligible for acquisition with
the Contingent Consideration*3
Number of shares held after shares are acquiredwith the Contingent Consideration ((E) + (F))

Number of shares(millions)% of outstanding
shares*1

60.9

4.9%

20.0

1.6%

40.9

3.3%

36.1

2.9%

4.8

0.4%

48.8

3.8%

53.6

4.1%

Notes:
1. Percentages shown in (A) through (E) are ratios of 1,247,966,318 shares of common stock outstanding as of July 28, 2021, as
reported by T-Mobile in its Quarterly Report on Form 10-Q, filed with the U.S. Securities and Exchange Commission on August 3, 2021, and the percentages shown in (F) and (G) are ratios of 1,296,717,875 shares, which adds 48,751,557 shares to be
newly issued pursuant to the Contingent Consideration.
2. Final number of shares dependent on prevailing share price at the time of receipt of proceeds
3. The right of the Company to acquire 48,751,557 T-Mobile shares for no additional consideration 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 from April 1, 2022, to December 31, 2025.

13

SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 30, 2021

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)

Condensed Interim Consolidated
Statement of Financial Position

Investor

Investment type

SBG

Stocks

Account

Condensed Interim Consolidated
Statement of Income
Balance at Q2E(Parentheses show
liabilities) Account
Realized gain (loss) on investments*1
Unrealized gain (loss) on
24,373 valuation of investments*1

Investment securities
SB
Northstar

Stocks, etc.

Credit transactions
Derivatives Long call options oflisted stocks
Short call options oflisted stocks
Short stock index
futures contracts
Total return swap
contracts related tolisted stocks
Long forward
contracts related tolisted stocks

Investments fromasset management subsidiaries
Securities pledged as collateral inasset management subsidiaries
Borrowed securities*2
Derivative financial assets inasset management subsidiaries
Derivative financial liabilities in
asset management subsidiaries

Realized gain (loss) on investments
460,022 at asset management subsidiaries
Unrealized gain (loss) on valuation
67,923 of investments at asset- management subsidiaries*3

Amountrecorded
Q1-Q2

Cumulative
gain (loss)
since inception

37,569259,578(28,731)

13,557

62,95142,414(79,778)

54,29676,185(534,505)

68,196(164,660)(19,786)

145,931

48,410(18,729)

129,089-

Derivative financial assets inasset management subsidiaries
Derivative financial liabilities in
asset management subsidiaries
Derivative financial assets inasset management subsidiaries
Derivative financial liabilities in
asset management subsidiaries(39)- Derivative gain (loss) on
investments at asset management(1,749) subsidiaries

Notes:
Gain (loss) on investments at
1. Some of the listed shares acquired by SBG in the first and second quarters of the previous fiscal year were transferred toInvestment Business of Holding
SB Northstar in the second quarter of the previous fiscal year. For a portion of such listed shares that were sold to third
Companies
parties by SB Northstar following the transfer, the difference between the acquisition value paid by SBG and the transfer
value to SB Northstar is presented as “realized gain (loss) on investments.” When SB Northstar sells such listed shares to Net income attributable tothird parties, the corresponding difference was reclassified from “unrealized gain (loss) on valuation of investments” tonon-controlling interests*4,*5“realized gain (loss) on investments.”
2. The fair value of the securities borrowed for short credit transactions
Impact on net income
3. After elimination of intercompany transactions
attributable to owners of the
4. 33% of the gain (loss) on investments at SB Northstar
5. Excludes impacts such as selling, general and administrative expenses and tax expenses.
parent*5

14

SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 30, 2021

Impact of the asset management subsidiaries on the Company’s Condensed Interim Consolidated Statement of
Financial Position*1
As of September 30, 2021
(Millions of yen)

September 30, 2021
Cash and cash equivalents
Investments from asset management subsidiaries
Securities pledged as collateral in asset management subsidiaries
Derivative financial assets in asset management subsidiaries
Other financial assets
Other

237,306
460,02267,923129,089
40,677393

Total assets

935,410

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

286,257
1,788
68,863
3,997

Total liabilities

360,905

Investments from Delaware subsidiaries*2

1,037,297

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

39,786
977,618
19,893 A(461,240) B(1,552)Equity574,505

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 and investments made by SB Northstar in SPACs controlled by SBIA US, is presented for reference toshow the impact of SB Northstar on the Condensed Interim Consolidated Statement of Financial Position of the Company.
2. Investments from the Company’s subsidiaries, Delaware Project 1 L.L.C., Delaware Project 2 L.L.C., and Delaware Project 3 L.L.C.
(“Delaware subsidiaries”), to the asset management subsidiary, SB Northstar(Calculation of non-controlling interests)(Millions of yen)

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

19,893 A(153,674)(1,329)Non-controlling interests (interests of Masayoshi Son)

(135,110) D

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

709,615(135,110) D

Equity574,505

15

C

SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 30, 2021

Status of assets
As of September 30, 2021

a. Stocks, etc.
(Millions of U.S. dollars)

Fair value as of September 30, 2021
Stock
AbCellera Biologics Inc.
Arqit Quantum Inc.

197
10

Doma Holdings, Inc.
Lyell Immunopharma, Inc.

20
52

Pacific Biosciences of California, Inc.
Sana Biotechnology, Inc.

208
50

SomaLogic, Inc.

27

Sema4 Holdings Corp.

68

11 SPACs

311

Including three SPACs controlled by SBIA US*1

51

OthersNVIDIA Corporation*2

2,568
218

OthersConvertible bonds

1,256

Total

4,987

Notes:
1. Investments into the three SPACs controlled by SBIA US are eliminated in consolidation as intercompany transactions.
2. The NVIDIA shares are held by SBG.

b. Derivatives(Millions of U.S. dollars)

Fair value as of September 30, 2021*1

Notional principal

1,153
(0)

4,872
3

(16)

1,953

1,137

6,828

Long call options of listed stocks
Total return swap contracts related to listed stocks
Long forward contracts related to listed stocks
Total
Note:
1. Parentheses show liabilities.

16

SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 30, 2021

MAIN INTEREST-BEARING DEBT AND LEASE LIABILITIES IN THIS SEGMENT
Balance as of September 30, 2021
in Condensed Interim
Consolidated Statement of
Financial Position

Borrower

Type

SBG

Borrowings¥1,245.7 billion

Corporate bonds
Lease liabilities¥6,002.4 billion¥12.7 billion

Commercial paper¥237.1 billion

Wholly owned subsidiaries
conducting fund procurement

Prepaid forward contracts using Alibaba shares(floor contracts, collar contracts, and a forward
contract)¥3,852.7 billion

Borrowings using Alibaba shares (margin loan)¥1,114.4 billion

Borrowings using SoftBank Corp. shares(margin loan)
Prepaid forward contracts using T-Mobile shares(collar contracts)

SB Northstar¥499.3 billion¥229.4 billion

Borrowings using T-Mobile shares(margin loan and bridge loan)¥435.3 billion

Borrowings¥286.3 billion

Note:
1. Borrowings of wholly owned subsidiaries conducting fund procurement are non-recourse to SBG, except for borrowings using TMobile shares which SBG partially guarantees.

17SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 30, 2021(b) SoftBank Vision Funds Segment
1. Loss on investments (net) was ¥743.2 billion. Segment loss, after deducting change in third-party
interests, was ¥589.5 billion
 SVF1- Realized gain on investments (net) of ¥757.2 billion: The partial sale of investments in listed
portfolio companies including DoorDash, Coupang, and Uber
- Unrealized loss on valuation of investments (net) of ¥542.4 billion from investments held at thesecond quarter-end· ¥1,421.7 billion valuation loss (net) for listed portfolio companies: Losses totaling ¥1,890.7 billion
were recorded for 13 portfolio companies including Coupang and DiDi, while gains totaling¥469.0 billion were recorded for two portfolio companies including DoorDash· ¥879.3 billion valuation gain (net) for unlisted portfolio companies mainly due to an increase in thefair value of those that are expected to be listed or from subsequent funding rounds
 SVF2- Realized gain on investments of ¥105.3 billion- Unrealized gain on valuation of investments (net) of ¥12.6 billion from investments held at thesecond quarter-end· ¥365.0 billion valuation loss (net) for listed portfolio companies· ¥377.6 billion valuation gain (net) for unlisted portfolio companies
2. Status of investment activities
 SVF1- Investments before exit: Held 81 investments (including 15 listed portfolio companies) as of thesecond quarter-end at cost totaling $72.1 billion, with the fair value amounting to $104.6 billion- Cumulative gross gain*1 since SVF1’s inception reached $48.7 billion, including cumulative realized
gain of $14.1 billion, cumulative derivative gain of $1.5 billion, and cumulative dividend income of$0.7 billion
 SVF2- Held 157 investments (including eight listed portfolio companies) as of the second quarter-end at
cost totaling $33.5 billion, with the fair value amounting to $37.0 billion- Committed capital totaled $42.0 billion as of the second quarter-end
3. Introduced co-investment program to SVF2
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).
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 is managed by SBIA, a wholly owned subsidiary of
the Company established in the U.K., which is authorized and regulated by the Financial Conduct Authority.
SVF1’s investment period ended on September 12, 2019. The remaining undrawn capital is reserved for followon 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).

18

SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 30, 2021

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. While SVF2 was previously managed by SBIA, since the second quarter, the fund has been managed by
SBGA, a wholly owned subsidiary of the Company established in the U.K. Investment management decisions of
SVF2 are made through an investment committee established in SBGA. SBGA is headed by Rajeev Misra, CEOof SBIA, who is also a member of the investment committee. SBGA outsources the majority of its investment andoperating functions to SBIA and SBIA continues to support the management of SVF2 under a service agreement.
In addition, MASA USA LLC (“MgmtCo”), an investment entity for the co-investment program, newly participated in the fund in the second quarter.5 The interest attributable to MgmtCo is treated as a third-party interest in
the Company’s consolidated financial statements. As of the second quarter-end, SVF2’s total committed capital is$42.0 billion.
In addition, SBIA US uses SPACs to complement its investments in listed and unlisted companies and to pursue
a wider range of investment opportunities beyond the investment mandates for the private funds. The SPACs
controlled by SBIA US, specifically SVF Investment Corp., SVF Investment Corp. 2, and SVF Investment Corp.
3, were listed on the Nasdaq in January, March, and March 2021, respectively, and such SPACs aim to complete
their business combinations within two years of the closing of each offering. After such business combinations,
SBIA US expects to cease control of the combined companies.
Co-investment Program of SVF2
In the second quarter, SVF2 introduced a co-investment program with restricted rights to receive distributions (the“Program”). Under the Program, the Company’s management makes joint investments with the Company andshares both the profits and also the risks associated with the investments. The Program aims the Company’s management to further focus on SVF2 and contribute to the Company’s earnings growth.
The Program targets an approved selection of SVF2’s investments, including investments in private portfolio
companies held or intended to be held by SVF2 as of June 23, 2021, and any new investments executed on or afterJune 24, 2021 (excluding any follow-on investments to the portfolio companies that are outside of the Program’s
scope). Target investments are held by SVF II Investment Holdings LLC (“SVF2 LLC”), a subsidiary of the Company established beneath SVF2. SVF2 LLC issued equity6 to the Company and MgmtCo. Accordingly, the Company holds 82.75% and MgmtCo holds 17.25% of the total equity interests. These equity interests are entitled toperformance-based distributions that are allocated based on the proportion of respective equity contributions.
Distributions from SVF2 LLC to MgmtCo are subject to certain restrictions. Specifically, distribution will not
be made to MgmtCo until the sum of proceeds received by SVF2 LLC from realized investments plus the aggregate
fair market value of all of SVF2 LLC’s unrealized investments (net of borrowings) exceeds 130% of the aggregateacquisition cost of all of SVF2 LLC’s investments. After the ratio exceeds 130%, restrictions on distributions to
MgmtCo will be released proportionately in increments of 10%. When the ratio reaches 200%, all restrictions will
be released and MgmtCo will be entitled to receive the full amount of the distribution.
MgmtCo is entitled to make full or partial payment of its capital contribution in SVF2 LLC at any point in timeand is required to pay a premium calculated at 3% per annum on outstanding receivable of SVF2 LLC.7 Any
distributable amount from SVF2 LLC to MgmtCo is offset against receivables at the time of the distribution notice19

SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 30, 2021

and no distribution payment is made to MgmtCo until SVF2 LLC’s receivables are paid in full.8 Furthermore, inthe event that, upon the liquidation of SVF2 LLC, the amount of the distributions received by MgmtCo exceeds
the amount that would have been distributed to MgmtCo if the ratio in effect at the time of liquidation was applied
throughout the life of SVF2 LLC, then any such excess amounts will be subject to clawback from MgmtCo.
In parallel with the introduction of the Program, the Company has decided to invest in SVF2 LLC in the formof preferred equity,6 which generates a fixed distribution of 8% per annum, in order to enhance the efficiency ofrecovery of investment funds. The preferred equity interests have a priority right over the Equity interests held by
the Company and MgmtCo under the Program in terms of distributions and return of contributions. The Company
continues to hold 100% of the equity for the investments in portfolio companies that are outside of the Program's
scope.9

For details, see “(1) Introduction of Co-investment Program with Restricted Right to Receive Distributions andPreferred Equity to SVF2” under “4. SoftBank Vision Funds business” together with “18. Related party transactions” in “(6) Notes to Condensed Interim Consolidated Financial Statements” in “3. Condensed Interim Consolidated Financial Statements and Primary Notes.”

20

SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 30, 2021

Outline of principal funds in the segment
As of September 30, 2021

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

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)

42.0
The Company: 39.4
Third-party investor (MgmtCo): 2.6
SVF II GP (Jersey) Limited(The Company’s wholly owned overseas subsidiary)

Investment period

Ended on September 12, 2019

Minimum fund life

Until November 20, 2029 (in principle)

Not disclosed

Note:
1. The Company’s committed capital to SVF1 includes approximately $8.2 billion of an obligation satisfied by using Arm shares(all said shares have been contributed) and $2.5 billion earmarked for purposes of 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” on the Company’s website at https://group.softbank/en/ir/presentations/.

21

SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 30, 2021

Capital deployment
As of September 30, 2021

SVF1

(Billions of U.S. dollars)

Total

The Company

Third-party investors

98.6
86.4
26.4
60.0
12.2

33.1
29.6
6.4
23.2
3.5

65.5
56.8
20.0
36.8
8.7

Committed capital (A)Drawn capital10 (B)Return of capital (non-recallable) (C)Outstanding capital (D) = (B) – (C)Remaining committed capital (E) = (A) – (B)Note: The Company’s committed capital to SVF1 includes approximately $8.2 billion of an obligation that is satisfied by using
Arm shares (all said shares have been contributed) and $2.5 billion earmarked for purposes of an incentive scheme related to
SVF1.

SVF2
(Billions of U.S. dollars)

Total
42.0
33.9
8.1

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

(Reference: Breakdown of committed capital as of September 30, 2021)
Total committed capital
The Company’s Equity commitment to investments outside of the Program
The Company’s Preferred Equity commitment to SVF2 LLC
The Company’s Equity commitment to SVF2 LLC
MgmtCo’s Equity commitment to SVF2 LLC
Note: As of the second quarter-end, no capital was paid by MgmtCo.

22

42.0
7.7
19.3
12.4
2.6

SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 30, 2021

FINANCIAL RESULTS(Millions of yen)Six months ended September 30
2020
2021
Gain (loss) on investments at SVF1, SVF2,
and others*1
Realized gain on investments
Unrealized gain (loss) on valuation of
investments
Change in valuation for the fiscal year
Reclassified to realized gain recorded in
the past fiscal year*2
Dividend income from investments
Derivative gain (loss) on investments
Effect of foreign exchange translation
Selling, general and administrative expenses
Finance cost
Derivative gain (excluding gain (loss) on
investments)
Change in third-party interests in SVF1 andSVF2Other gain (loss)
Segment income (income before income tax)

ChangeChange %1,411,567
141,385(743,164)
862,522(2,154,731)
721,137510.1%

1,260,592
1,342,001(1,553,736)(529,840)(2,814,328)(1,871,841)-(81,409)
4,623
1,091
3,876
(34,430)(6,228)(1,023,896)
22,635(42,370)(32,215)(30,051)(9,679)(942,487)
18,012(43,461)(36,091)
4,379(3,451)

389.6%(12.7%)
55.4%

-

1,424

1,424

-

(457,537)
617
913,989

195,179(3,245)(589,536)

652,716(3,862)(1,503,525)

-

A

B

Notes:
1. Because Arm is a subsidiary of the Company, unrealized gains and losses associated with the change in valuation on SVF1’s
holdings of Arm, as well as dividends income received from Arm (which includes shares of Treasure Data, Inc. received as dividends in kind), are included in segment income as “gain (loss) on investments at SVF1, SVF2, and others,” but are eliminated inconsolidation and not included in “gain (loss) on investments at SVF1, SVF2, and others” in the Condensed Interim Consolidated Statement of Income.
2. Unrealized gains and losses on valuation of investments recorded in prior fiscal years related to the investments realized in thefiscal year are reclassified as “realized gain on investments.”

During the period, SVF1 made a new investment and follow-on investments totaling $2.5 billion2 and sold all of
its shares in one portfolio company and a portion of its shares in nine portfolio companies for a total of $12.1
billion11 of which the initial acquisition cost was $5.3 billion.2 SVF2 made new and follow-on investments totaling$27.2 billion and sold all of its shares in one portfolio company and a portion of its shares in another portfolio
company for a total of $1.3 billion, of which the initial acquisition cost was $0.4 billion.

23

SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 30, 2021

Segment income
A Loss on investments at SVF1, SVF2, and others: ¥(743,164) million· SVF1- Realized gain on investments (net) of ¥757,217 million was recorded mainly due to the sale2 of all of its
shares in one portfolio company and a portion of its shares in nine portfolio companies including DoorDash,
Coupang, and Uber Technologies Inc (“Uber”).
- Unrealized loss on valuation of investments held by SVF1 at the second quarter-end was ¥542,405 million($4,894 million, net) (see “SVF1” under “Investment performance” below for a breakdown). Valuation loss(net) totaling $12,861 million for listed portfolio companies was recorded due to the decline in the shareprices of 13 portfolio companies, including Coupang and DiDi, despite an increase in the share prices of two
portfolio companies including DoorDash. On the other hand, valuation gain (net) totaling $7,967 million wasrecorded for unlisted portfolio companies mainly due to an increase in the fair value of those that are expected
to be listed or from subsequent funding rounds.
· SVF2- Realized gain on investments of ¥105,305 million was recorded as a result of an entire sale of one portfolio
company and the partial sale of KE Holdings.
- Unrealized gain on valuation of investments was ¥12,565 million ($116 million, net) (see “SVF2” under“Investment performance” below for a breakdown). Valuation loss (net) of $3,306 million for listed portfolio
companies was recorded, mainly due to a decline in the share price of KE Holdings. On the other hand,
valuation gain (net) totaling $3,421 million was recorded for unlisted portfolio companies, mainly due to anincrease in the fair value of those that are expected to be listed.
B Change in third-party interests in SVF1 and SVF2: ¥195,179 million
This indicates the sum of distributions to third-party investors in proportion to their interests in fixed distributions
and performance-based distributions, which are based on the gains and losses on investments at SVF1 and SVF2,
net of management and performance fees payable to each manager, and operating and other expenses of SVF1 and
SVF2. For details, see “(4) Third-party interests in SVF1 and SVF2” under “4. SoftBank Vision Funds business”
in “(6) Notes to Condensed Interim Consolidated Financial Statements” in “3. Condensed Interim Consolidated
Financial Statements and Primary Notes.”

24

SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 30, 2021

Investments transferred from the Company to SVF2
The Company has established a policy for handling the investment portfolio of SBG and its major investment
subsidiaries, and in accordance with this policy, the Company is proceeding with the transfer of unlisted investments to SVF2 in principle. The Company transferred the investments shown below to SVF2 through sale or inkind contribution, as of the second quarter-end.
(Millions of U.S. dollars)

UPSIDE Foods, Inc.
Berkshire Grey, Inc.
Cybereason Inc.
InMobi Pte. Ltd.
Treasure Data, Inc.
WeWork Inc.

Transfer month

Transfer method

November 2020
March 2021
June 2021
June 2021
June 2021
August 2021

Sale
In-kind contribution
In-kind contribution
Sale
Sale
Sale

Transfer value
by the Company to SVF2
51
115
317
597
519
2,444
4,043

Total of six investments

Note: The value of investments transferred from the Company to SVF2 is based on either the Company’s carrying amount as of thequarter-end immediately prior to the transfer date if the transfer is made by in-kind contribution, or on fair value as of thequarter-end immediately prior to the transfer date if the transfer is made by a sale. Investment gains and losses that occurredprior to the transfer is recorded in the reportable segment to which the investment belonged prior to the transfer.

25

SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 30, 2021

Investment performance
As of September 30, 2021

SVF1

(Billions of U.S. dollars)

Total ((1) + (2) + (3) + (4) below)
Cumulative
number ofinvestments
95

Cumulative
investment
cost
88.2

Cumulative
investment
return137.0

Cumulative
gain*1
48.7(Reference)
Cumulative
Cumulative
Cumulative
number ofinvestment
investment
investments
cost
returnEffects of share exchanges
(2)
(1.7)
(1.7)
Uber Advanced Technologies Group and Aurora Innovation Inc.
PT Tokopedia and GoTo
Effects of dividends in kind
(1)
Treasure Data, Inc.
Net of effects of shareexchanges and dividends
in kind*2, 3
92
86.5
135.3

Cumulative
gain*1
0.0

-

48.7

(1) Investments before exit (investments held at the second quarter-end)

Listed companies
Unlisted companies
Total

Number ofinvestments
15
66
81

Investment
cost
23.9
48.2
72.1

Fair value
44.3
60.3
104.6

Cumulative
unrealized
valuation gain*4
20.4
12.1
32.5

Unrealized
valuation gain
(loss) recorded
for the fiscal year
Q1-Q2
(12.9)
8.0(4.9)

Cumulative
realized gain*1
9.0
5.1
14.1

Realized gainrecorded for the
fiscal year
Q1-Q2
6.6
0.3
6.9

Cumulative
derivative gain
1.5

Derivative gainrecorded for the
fiscal year
Q1-Q2
0.0

Cumulative
income0.7

Dividend income
recorded for the
fiscal year
Q1-Q2
0.2

(2) Exited investments

Partial exit
Full exit*5
Total

Number ofinvestments
14
14

Investment
cost
6.8
9.3
16.1

Sale price
15.8
14.4
30.2

(3) Derivative gain and loss relating to investment

Total (settled)

Derivative
cost
0.0

Fair value /settlement
price
1.5

(4) Dividend income from investments
Dividend
income0.7

Total

Notes:* The total and the sum of the breakdown in the table may not match as the amount of each item is rounded to the nearest unit.
1. Before deducting third-party interests, tax, and expenses
2. For investments in which share exchanges occurred, acquisition costs of new investments and disposal prices (sale prices) of investments initially held are deducted for the purpose of presenting the cumulative net investment performance. Similarly, for investment
acquired through dividends in kind from existing portfolio companies, investment count is deducted.
3. In addition to the share exchanges listed above, SVF1 exchanged all shares in two portfolio companies for shares in their affiliated companies, which are also existing portfolio companies. Acquisition costs and disposal prices (sale prices) of these investments are also deducted in this section.
4. For a certain investment that was once decided to be transferred from the Company to SVF1 but later canceled, its unrealized26

SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 30, 2021

valuation gains and losses incurred for the period leading up to the decision to cancel the transfer are not included in the presentation.
5. Includes disposal (sale) through share exchanges.

SVF2(Billions of U.S. dollars)

Total ((1) + (2) + (3) + (4) below)
Cumulative
number ofinvestments
158

Cumulative
investment
cost
33.9

Cumulative
investment
return37.9

Cumulative
gain*1
4.0(1) Investments before exit (investments held at the second quarter-end)

Listed companies
Unlisted companies
Total

Number ofinvestments
8
149
157

Investment
cost*2
3.2
30.3
33.5

Fair value*2
3.3
33.7
37.0

Cumulative
unrealized
valuation gain
0.1
3.4
3.5

Unrealized
valuation gain
(loss) recorded forthe fiscal year
Q1-Q2
(3.3)
3.4
0.1

Sale price
1.2
0.1
1.3

Cumulative
realized
gain*1
0.8
0.1
0.9

Realized gainrecorded forthe fiscal year
Q1-Q2
0.9
0.1
1.0

Cumulative
derivative loss
(0.4)

Derivative loss
recorded forthe fiscal year
Q1-Q2
(0.4)

Cumulative
income0.0

Dividend income
recorded forthe fiscal year
Q1-Q2
0.0

(2) Exited investments

Partial exit
Full exit
Total

Number ofinvestments
1
1

Investment
cost
0.4
0.0
0.4

(3) Derivative gain and loss relating to investment

Total

Derivative
cost-

Fair value(0.4)(4) Dividend income from investments
Dividend
income0.0

Total

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

27

SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 30, 2021

(Reference) Investments before exit (investments held at the second quarter-end)
As of September 30, 2021

SVF1
(Billions of U.S. dollars)

Number of
Sectorinvestments Investment costa Consumer
12
10.6
b Edtech10.7
c Enterprise7
1.6
d Fintech11
4.3
e Frontier Tech10
11.1
f Health Tech8
2.0
g Logistics
13
8.5
h Proptech
910.1
i Transportation
10
23.2
Total
81
72.1
(Reference)
Listed companies*1
15
23.9
a Coupang
2.4
d OneConnect
0.1
d ZhongAn Insurance
0.1
e Zymergen
0.4
f Guardant Health
0.0
f Relay Therapeutics
0.3
f Vir Biotechnology
0.2
g DoorDash
0.5
g Full Truck Alliance
1.7
h Compass1.1
h Opendoor
0.3
h View
1.2
i AUTO1
0.7
i DiDi12.0
i Uber
2.9
Unlisted companies
66
48.2
Total
81
72.1

Fair value
32.6
0.1
2.5
4.5
12.3
3.5
21.0
5.2
22.9
104.6

Cumulative
unrealized valuation gain (loss)
22.0
(0.6)
0.9
0.2
1.2
1.5
12.5
(4.9)
(0.3)
32.5

Unrealized valuation
gain (loss) recorded
for the fiscal year
Q1-Q2
(7.2)
(1.0)
0.5
1.8
0.4
(0.4)
5.3
(0.5)
(3.8)
(4.9)

44.3
14.2
0.0
0.1
0.3
0.1
0.9
1.0
9.0
3.0
1.8
0.9
0.4
1.4
7.5
3.7
60.3
104.6

20.4
11.8
(0.1)
(0.0)
(0.1)
0.1
0.6
0.8
8.5
1.3
0.7
0.6
(0.8)
0.7
(4.5)
0.8
12.1
32.5

(12.9)(11.0)
(0.1)
(0.0)
(0.5)
(0.0)
(0.1)
(0.2)
3.2
1.0
(0.6)
(0.0)
(0.1)
(0.8)
(2.9)
(0.8)
8.0
(4.9)

Note:
1. The letter corresponding to the listed companies indicates the sector to which the company belongs. Investments in that sector
are not limited to those listed companies.

28

SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 30, 2021

SVF2
(Billions of U.S. dollars)

Number ofinvestments Investment cost
Sectora Consumer
40
8.0
b Edtech8
1.2c Enterprise35
4.8
d Fintech21
5.0
e Frontier Tech12
2.0
f Health Tech23
2.5
g Logistics
9
4.8
h Proptech
34.0
i Transportation
5
1.2
j Other
1
0.0
Total
157
33.5
(Reference)
Listed companies*1
8
3.2
a Dingdong
0.3
b Zhangmen
0.1
e Qualtrics
0.0
f Seer0.2
g Full Truck Alliance
0.3
g JD Logistics
0.6
g Berkshire Grey
0.7
h KE Holdings
1.0
Unlisted companies
149
30.3
Total
157
33.5

Fair value
8.3
1.1
4.9
4.7
2.0
2.7
6.0
5.6
1.7
0.0
37.0

Cumulative
unrealized valuation gain (loss)
0.3
(0.1)
0.1
(0.3)
0.0
0.2
1.2
1.6
0.5
0.0
3.5

Unrealized valuation
gain (loss) recorded
for the fiscal year
Q1-Q2
0.3
(0.1)
0.1
0.1
0.0
0.1
1.2
(1.9)
0.3
0.0
0.1

3.3
0.3
0.0
0.0
0.2
0.4
0.5
0.5
1.4
33.7
37.0

0.1
0.0
(0.1)
0.0
(0.0)
0.1
(0.1)
(0.2)
0.4
3.4
3.5

(3.3)
0.0
(0.1)
0.0
(0.1)
0.1
(0.1)
(0.2)
(2.9)
3.4
0.1

Note:
1. The letter corresponding to the listed companies indicates the sector to which the company belongs. Investments in that sector
are not limited to those listed companies.

29

SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 30, 2021

(c) SoftBank Segment
Segment income was almost flat yoy; gain on investments improved and income increased in theenterprise and the Yahoo! JAPAN/LINE businesses, while income decreased in the consumer business.
(Millions of yen)Six months ended September 30
2020
2021
Net sales
Segment income (income before income tax)
Depreciation and amortization
Gain (loss) on investments
Finance cost
Loss on equity method investments*1
Derivative gain (loss)(excluding gain (loss) on investments)

ChangeChange %2,427,767
533,284(348,009)(6,043)(32,920)(17,129)2,724,357
532,125(367,752)
20,284(31,104)(28,254)

296,590(1,159)(19,743)
26,327
1,816(11,125)12.2%(0.2%)
5.7%(5.5%)
-

(42)

2

44

-

Note:
1. Includes losses on equity method investments related to PayPay Corporation of ¥13,930 million for the period and ¥14,767 million for the same period of the previous fiscal year. 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 its financial results are included in “Other.” For this reason, loss on equity method investments related to PayPay Corporation recognized in the SoftBank segment is eliminated in “Reconciliations” in segment information.

OVERVIEW
Segment results include the results of business activities conducted by SoftBank Corp., such as provision of mobile
services and sale of mobile devices, as well as provision of internet services and e-commerce services, mainly
inside Japan. Under its Beyond Carrier strategy, SoftBank Corp. aims to strengthen its earnings base by going
beyond the confines of a conventional telecommunications carrier, while further growing the telecommunications
business, and expanding its businesses in three fields: telecommunications business, Yahoo! JAPAN/LINE business, and new businesses.
FINANCIAL RESULTS
Segment income was ¥532,125 million, almost flat year on year. This was mainly due to an improved gain on
investments and increases in income in the Yahoo! JAPAN/LINE and enterprise businesses, which more than offset
a decrease in income in the consumer business caused by the impact of lower communication charges for mobile
services. While revenue increase was mainly driven by the consolidation of LINE Corporation and an increase insales of mobile devices, their contribution to segment income was tempered by corresponding increases in cost of
sales and selling, general and administrative expenses.
Income in the Yahoo! JAPAN/LINE business increased primarily due to recording gain relating to loss of control
in conjunction with the sale of YJFX, Inc. Income in the enterprise business increased due to an increase in mobile
revenue following the greater demand for remote working, along with an increase in sales of cloud services andsecurity solutions as the digitization of enterprises accelerates.
For more information on SoftBank Corp.’s financial results and business operations, please refer to its website athttps://www.softbank.jp/en/corp/ir/.

30

SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 30, 2021(d) Arm Segment
1. Continuing strong revenue growth, resulting in positive segment income
 Net sales increased by 61.3% yoy.
- Technology royalty revenue increased by 23.8% yoy (U.S. dollar-based) due to strong industry
growth especially in markets where Arm has good exposure such as chips for mobile, infrastructure
and automotive.
- Technology non-royalty revenue increased by 115.6% yoy (U.S. dollar-based) due to the availabilityof Arm’s newly developed products combined with some large Arm customers increasing investments in R&D as they enter new markets.
 Strong revenue growth leads to positive segment income. Arm’s ongoing investments in R&D inprevious years are driving the current segment income gains.
2. Cumulative Arm-based chip shipments break 200 billion markIn the period, Arm’s partners reported that they had shipped 13.7 billion Arm-based chips.12 This takes
the cumulative total of Arm-based chip shipments to over 200 billion since Arm was founded.
(Millions of yen)Six months ended September 30
2020
2021
Net sales
Segment income (income before income tax)

100,004(10,821)

161,355
33,994

ChangeChange %61,35144,815

61.3%-

Notes:
1. Since the fourth quarter of the previous fiscal year, the Internet-of-Things Services Group (ISG) business is managed separatelyfrom the Arm business and its results are therefore included in “Other” instead of the Arm segment.
2. Segment income included amortization expenses of ¥24,997 million for the period and ¥24,220 million for the same period of
the previous fiscal year. These expenses are related to intangible assets recognized in the purchase price allocation at the time of
the acquisition of Arm.

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, both positively and negatively. The semiconductor industry has grown very strongly due to long-term trends such as more products andservices depending on increasing amounts of embedded intelligence, such as cars providing more driver information and assistance, and smartphones improving camera technology generation after generation for better photography. Some markets have shown particularly strong growth in the period including 5G smartphones and networking equipment as well as embedded and automotive applications, where Arm has good exposure. This growthhas benefited Arm’s technology royalty revenue as it grows with industry sales. Industry growth also accelerated
Arm’s customers’ design activity, creating new opportunities for Arm to license its latest technologies and thus
driving non-royalty revenue (technology licensing revenue and software and services revenue). The industry isvulnerable to other external factors, including trade disputes and sanctions against specific companies, as well as
the impact of temporary component shortages; for example, some automotive manufacturers and smartphone31

SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 30, 2021

OEMs could not source sufficient numbers of chips resulting in delays in the production of cars and phones. If
shipments of consumer electronic devices weaken, it may lead to lower Arm’s technology royalty revenue, and if
customers facing reduced revenues choose to delay licensing decisions, it may lead to lower technology nonroyalty revenue. However, it is difficult to anticipate when these events may occur and the impact on the semiconductor industry in general or Arm specifically.
Arm is expecting that, as consumer and enterprise electronics become more advanced, its technology will befurther 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)

Six months ended September 30
2020
2021

ChangeChange %Technology royalty
Technology non-royalty

605
331

749
714

144
383

23.8%
115.6%

Total net sales

936

1,463

527

56.3%

Net sales increased by $527 million (56.3%) year on year due to increases in both technology royalty revenue andtechnology non-royalty revenue.
Technology royalty revenue
Technology royalty revenue increased by $144 million (23.8%) year on year. Royalty revenues were driven by thestrong ramp in shipments of Arm-based 5G smartphones and the deployment of networking equipment into 5Gbase stations, and Arm’s customers gaining share in multiple markets such as automotive and servers. In addition,
Arm’s customers are benefitting from the very high demand for computer chips enabling prices to increase, andas Arm’s royalty revenue is often based on the price of the chips, Arm is also benefiting from higher chip prices.
Technology non-royalty revenue
Technology non-royalty revenue increased by $383 million (115.6%) year on year. This increase is primarily due
to the availability of more Arm technology following the period of accelerated R&D spending since Arm has beenacquired by the Company. Over the past few years, 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, and AI 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. This included 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 self-driving vehicles. In addition, over the past year, strong industry demand for Arm-based chips has encouraged Arm’s
customers to invest in new R&D projects to develop more chips and therefore increased demand for Arm processor
licenses.

32

SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 30, 2021

Segment income
Segment income was ¥33,994 million, improving by ¥44,815 million year on year. This was mainly due to Arm’s
strong revenue growth exceeding the increase in costs that were mainly in line with headcount growth.
As Arm continues to enhance its R&D capabilities by hiring more employees, mainly technology-related personnel, the number of Arm employees at the second quarter-end increased by 2.7% from the previous fiscal yearend.
OPERATIONSRoyalty units12(Billion)

Six-month period ended June 30
2020
2021
Royalty units as reported by Arm’s licensees

11.0

13.7

ChangeChange %

2.7

24.4%

Arm’s licensees reported shipments of 13.7 billion Arm-based chips shipped in the six-month period ended June30, 2021. Arm’s unit shipments increased by 24.4% year on year, while shipments by the Arm-relevant part of thesemiconductor industry increased by 17.6%13 during the same period.

33

SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 30, 2021

TECHNOLOGY DEVELOPMENT
Arm considers the following as its primary areas for increased investment and is evolving technology in both its
mobile business and other businesses with strong growth potential.
Arm’s primary investment areas and main developments
Mobile computing
Opportunity:

The first quarter:

Infrastructure
Opportunity:

The first quarter:

The second quarter:

Automotive
Opportunity:

The first quarter:

The second quarter:

IoT
Opportunity:

The first quarter:

The second quarter:

Arm already has over 95% share of the main chips in mobile devices and, overtime, has been successfully increasing royalties per chip.
Arm introduced three new processors, Cortex-X2, Cortex-A710, and Cortex-A510,
based on Armv9, and three new graphics processors, Mali-G710, Mali-G510, andMali-G310, all targeting the smartphone and mobile computing segment.
Arm has a growing share in networking infrastructure and a nascent share in data
center servers.
· Supercomputer Fugaku with Arm technology for servers, jointly developed by
RIKEN and Fujitsu Limited, has retained its number one ranking in the TOP500,
a global ranking based on calculation speed of supercomputers.
· Oracle Corporation announced that Oracle Cloud Infrastructure will include Armbased servers using chips from Ampere Computing LLC.
· NVIDIA Corporation and Marvell Technology, Inc. separately announced new 5G
networking infrastructure chips based on Arm processor technology.
· Cloudflare, Inc. announced a blueprint for a zero-emissions internet, assisted by
the deployment of low-power Arm-based technology. Cloudflare reported that it“achieved more than 50% improvement in requests per watt by deploying Arm
Neoverse-based processors in its edge servers.”
As vehicles become smarter, they require more computational capability. Arm iswell-positioned to gain market share by providing energy efficiency and Arm processor technology has already been licensed by most companies that develop automotive chips.
Arm and leading automotive companies and technology providers, including Audi
AG, DENSO CORPORATION, and NXP Semiconductors N.V., have started a newcollaboration to create standards for self-driving vehicles.
Arm introduced a new automotive design platform to enable the development ofsoftware-defined cars in the future; software can be downloaded to modify the performance and functionality of a car.
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.
Arm announced an initiative to help reduce the time to develop software for Armbased microcontrollers by enabling more code-reuse and code-sharing between developers.
Arm announced Total Solutions for IoT, an initiative which includes virtual development boards hosted on AWS, allowing software to be developed in parallel to a
new chip design. This initiative could help reduce the time needed to develop an
IoT product by up to two years.

34SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 30, 2021

Entry into agreement for sale of all shares in Arm
On September 13, 2020 (U.S. time), SBGC, a wholly owned subsidiary of the Company, 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 (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 ISG
businesses are outside the scope of the Transaction.
Upon the closing 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 an aggregate of approximately 6.7-8.1% 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)

Transaction value(1) Cash(2) NVIDIA shares

12.0

21.5
(44.37 million shares*3)(3) Earn-out
Up to 5.0
(cash or NVIDIA shares) (or 10.32 million shares*3)
Total consideration for
the Company(a) 2.0

Received in September 2020($0.75 billion of which was received
by Arm as consideration for a license
agreement)(b) 10.0

Upon closing
Upon closing
Upon closing; subject to satisfactionof specific financial performancetargets of Arm

Up to 38.5

(4) NVIDIA share compensation for Arm employees
TotalTime of receipt

1.5

Upon closing; to be received by Arm
employees

Up to 40.0

Notes:
1. The consideration described in (1), (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).
If (2) and (3) (in case of receiving the consideration in the form of NVIDIA shares) are calculated based on the closing price of
NVIDIA common stock on September 30, 2021 ($828.64), the maximum consideration for the Company would be $57.3 billion.
3. The number of shares before NVIDIA’s stock split on July 20, 2021

(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 by SBGC 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.

35

SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 30, 2021(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 44,366,423 shares of NVIDIA common stock,which is before NVIDIA’s stock split on July 20, 2021 and was determined based on 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 NVIDIA common stock to be received, 2,063,554 shares will be
subject to escrow 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, which is the numberof shares before NVIDIA’s stock split on July 20, 2021, (based on a price of $484.6007 per share, being the averageof 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 the 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 businesses) 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 berecorded as financial assets at FVTPL upon the closing of the Transaction, and thereafter changes in their fair value
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 from NVIDIA.

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

36SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 30, 2021(e) Latin America Funds Segment
1. Recorded gain on investments (net) of ¥193.7 billion mainly due to increases in the share price of
VTEX and the fair values of unlisted portfolio companies.
2. Established SoftBank Latin America Fund 2 in September 2021.
(Millions of yen)Six months ended September 30
2020
2021
Gain on investments at Latin America Funds

ChangeChange %63,468

193,698

130,230205.2%

Realized loss on investments
Unrealized gain on valuation of investments

63,178(9,114)201,954(9,114)
138,776

219.7%

Change in valuation for the fiscal year
Reclassified to realized loss recorded in
the past fiscal year*1
Derivative gain (loss) on investments
Other
Selling, general and administrative expenses
Finance cost
Derivative gain
(excluding gain (loss) on investments)
Other gain (loss)

63,178

193,920

130,742206.9%

219
71(1,540)
(108)

8,034
858
(4,559)
(478)

8,034
(219)
787
(3,019)(370)

196.0%
342.6%

41

92
(811)

92
(852)

-

Segment income (income before income tax)

61,861

187,942

126,081203.8%

Notes:* SoftBank Latin America Fund 1 has invested in one affiliated SPAC through the SPAC’s sponsor, which is the Company’s subsidiary in this segment. The operating results of the SPAC, as a subsidiary of the Company, are included in this segment.
1. Unrealized gains and losses on valuation of investments recorded in prior fiscal years related to the investments realized in thefiscal year are reclassified as “realized gain (loss) on investments.”

OVERVIEW
Segment results include the results of the investments and operational activities of SoftBank Latin America Fund
1 (SBLAF1) and SoftBank Latin America Fund 2 (SBLAF2), which are managed by the Company’s wholly owned
U.S. subsidiary SBLA Advisers Corp.
SBLAF2 was established in September 2021, following SBLAF1, with the objective of investing in companies
using technologies in all industries within rapidly developing Latin America. In the second quarter, SoftBank Latin
America Funds introduced14 a co-investment program with restricted rights to receive distributions and preferred
equity in the same way as SVF2. See “18. Related party transactions” under “(6) Notes to Condensed Interim
Consolidated Financial Statements” in “3. Condensed Interim Consolidated Financial Statements and Primary
Notes” for details.
As of September 30, 2021, the Company has committed15 capital of $5.0 billion in SBLAF1. Moreover, theCompany has committed capital of $1.4 billion in SBLAF2 as of September 30, 2021, and plans to increase its
capital commitment up to a maximum of $3.0 billion in the future.

37

SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 30, 2021

FINANCIAL RESULTS
SBLAF1 recorded unrealized gain on valuation of investments (net) totaling ¥201,954 million mainly due to anincrease in the share price of VTEX and the fair values of unlisted portfolio companies including Kavak Holdings Limited and QUINTOANDAR, LTD. On the other hand, SBLAF1 recorded realized loss on investments of¥9,114 million following the liquidation of two investments. These resulted in gain on investments of ¥193,698
million and segment income of ¥187,942. As of the second quarter-end, SBLAF1 and SBLAF2 held a combined
total of 61 investments and had invested a cumulative total of $4.9 billion, with a fair value of $8.1 billion.
For a list of portfolio companies of SoftBank Latin America Funds, 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 Six-Month Period Ended September 30, 2021(f) Other(Millions of yen)Six months ended September 30
2020
2021

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

112,200(22,860)

111,613(16,662)

(587)
6,198

(0.5%)-

Depreciation and amortization
Gain (loss) on investments
Finance cost
Income on equity method investments
Derivative loss
(excluding gain (loss) on investments)(22,344)
59,634(7,897)
6,908(16,118)(9,972)(7,568)19,486

6,226(69,606)
329
12,578(27.9%)(4.2%)
182.1%(250)(3,479)(3,229)-Note: Since the fourth quarter of the previous fiscal year, the ISG business is managed separately from the Arm business and its
operating results are therefore included in “Other” instead of the Arm segment. In June 2021, all of the shares of Treasure Data,
Inc. in the ISG business were distributed in kind to SVF1 and SBGC in accordance with their ownership ratios of Arm shares,
and subsequently SBGC sold its portion to SVF2.

Segment loss was ¥16,662 million. Fortress Investment Group LLC (“Fortress”) and PayPay Corporation recorded
losses before income tax of ¥42,056 million and ¥27,824 million, respectively. On the other hand, the Company
recorded a gain relating to loss of control of Boston Dynamics, Inc. of ¥72,936 million following the completionof the sale of its shares in the first quarter. See “7. Disposal group classified as held for sale” under “(6) Notes toCondensed Interim Consolidated Financial Statements” in “3. Condensed Interim Consolidated Financial Statements and Primary Notes” for details.
An overview of these results and operations follows.
· Fortress
Fortress recorded loss on investments of ¥23,588 million due to a decrease in the fair values of certain
investments, resulting in a loss before income tax of ¥42,056 million.
· PayPay Corporation
PayPay Corporation, which is engaged in smartphone payment services in Japan, recorded loss before income
tax of ¥27,824 million. Although revenue increased mainly due to the increase in affiliated store sales and growthin gross merchandise volume, expenses also increased due to campaigns aimed at acquiring users and promoting
their use, as well as the expansion of stores where the service is available. PayPay Corporation’s payment services
continued to see strong growth, with the number of payments for the period reaching 1,660 million, a 1.8-foldincrease year on year.
Results of PayPay Corporation included in “Other”(Millions of yen)Six months ended September 30
2020
2021
Net sales
Loss before income taxes

12,135(29,318)39

24,042(27,824)

ChangeChange %11,907
1,494

98.1%
-

SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 30, 2021

(2) Overview of Financial Position

1. Status of investment assets
 Carrying amount of investments from SVF1 and SVF2 totaled ¥14,639 billion, an increase of¥992.2 billion from the previous fiscal year-end*1- Decrease at SVF1 by ¥1,778.0 billion: The balance decreased by $13.7 billion mainly due to sales ofinvestments and $5.8 billion due to decreases in the fair value of investments held at the second quarter-end, which was partially offset by an increase of $2.3 billion due to new and follow-on investments.
- Increase at SVF2 by ¥2,770.2 billion: The balance increased by $26.3 billion due to new and followon investments.
 Carrying amount of investment securities of ¥3,898.4 billion, an increase of ¥191.6 billion from theprevious fiscal year-end- T-Mobile shares: The balance decreased by ¥603.2 billion from the previous fiscal year-end mainly
due to the sale to Deutsche Telekom. Deutsche Telekom shares were received as consideration for thesale (the second quarter-end balance: ¥507.7 billion).
- SoftBank Latin America Funds: The balance increased by ¥448.1 billion from the previous fiscal
year-end, mainly due to new investments.
 Carrying amount of stocks, etc. held at asset management subsidiaries decreased to ¥527.9 billion
from ¥2,182.5 billion at the previous fiscal year-end, mainly due to sales- The balance of investments from asset management subsidiaries was ¥460.0 billion (decrease of¥295.2 billion from the previous fiscal year-end).
- The balance of securities pledged as collateral in asset management subsidiaries was ¥67.9 billion(decrease of ¥1,359.4 billion from the previous fiscal year-end).
2. Procured funds in a flexible manner to meet funding needs for debt repayment and new investments
while keeping SBG’s LTV1 below 25%
 Interest-bearing debt of SBG increased by ¥1,339.5 billion from the previous fiscal year-end- The Company issued domestic hybrid bonds of ¥405.0 billion, domestic subordinated corporate
bonds of ¥500.0 billion, and foreign currency-denominated straight corporate bonds of $3.85 billionand €2.95 billion. In September, the Company redeemed domestic hybrid bonds of ¥455.6 billion
early.
 Financial liabilities relating to the sale of shares by prepaid forward contracts increased by ¥996.4 billion
from the previous fiscal year-end- The increase mainly reflected new prepaid forward contracts using Alibaba shares and T-Mobile
shares.
Note:
1. Investments from SVF1 and SVF2 do not include their investments in the Company’s subsidiaries or investments that are transferred from the Company to the funds and continue to be accounted for using the equity method (and included in “investments
accounted for using the equity method”) prior to and after the transfer.

(Millions of yen)March 31, 2021

September 30, 2021

ChangeChange %Total assets

45,750,453

46,220,788

470,335

1.0%

Total liabilities

33,794,860

33,881,318

86,4580.3%

Total equity

11,955,593

12,339,470

383,877

3.2%

40

SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 30, 2021

(a) Assets(Millions of yen)March 31, 2021

September 30, 2021

ChangeCash and cash equivalents

4,662,725

5,093,370

430,645

Trade and other receivables

2,216,434

2,009,419(207,015)

Investments from asset
management subsidiaries

658,227

319,485(338,742) A

Securities pledged as collateral inasset management subsidiaries

1,427,286

67,923(1,359,363) B

Derivative financial assets inasset management subsidiaries

188,056

129,089(58,967) C

Derivative financial assets

383,315

720,984

337,669

Other financial assets

671,907

294,090(377,817)

Inventories

126,830

128,599

1,769

Other current assets

446,739

216,662(230,077) E

Assets classified as held for sale38,647-(38,647) F

Total current assets

10,820,166

8,979,621(1,840,545)

Property, plant and equipment

1,668,578

1,705,414

36,836

Right-of-use assets

1,147,020

1,011,800(135,220)

Goodwill

4,684,419

4,706,186

21,767

Intangible assets

2,308,370

2,412,018

103,648

246,996

278,81431,818Investments accounted for using theequity method

4,349,971

4,825,476

475,505

H

Investments from SVF1 and SVF2
accounted for using FVTPL

13,646,774

14,638,981

992,207

I

SVF1

12,403,286

10,625,295(1,777,991)

SVF2

1,243,488

4,013,686

2,770,198

3,706,784

3,898,424

191,640J

908,660

1,201,116

292,456

K

Other financial assets

1,919,262

2,257,290

338,028

Deferred tax assets

206,069

176,853(29,216)

Other non-current assets

137,384

128,795(8,589)Total non-current assets

34,930,287

37,241,167

2,310,880

Total assets

45,750,453

46,220,788

470,335

Costs to obtain contracts

Investment securities
Derivative financial assets

41

D

G

SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 30, 2021

Reasons for changes by primary component
Components
Current assets
A Investments from asset
management subsidiaries

Main reasons for changes from the previous fiscal year-end

B Securities pledged as collateralin asset management
subsidiaries

Securities pledged as collateral decreased due to SB Northstar’s sale ofinvestments and repayment of collateralized debt obligations.

C Derivative financial assets inasset management subsidiaries

The fair values of long call options of listed stocks held by SB Northstar
decreased.

D Derivative financial assets

Derivative financial assets related to prepaid forward contracts using
Alibaba shares increased by ¥357,196 million, due to recording derivative
gains, reclassifying derivative financial assets with a remaining term of
one year or less from non-current assets, and new prepaid forward contracts entered.

E Other current assets

Withholding income tax in relation to dividends paid from SBGJ to SBG
in the previous fiscal year was refunded in July 2021, resulting in a decrease of ¥246,667 million.

F Assets classified as held forsale

Boston Dynamics, Inc.’s assets were 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, these assets were derecognized following the completion of the sale in the firstquarter.

Non-current assets
G Intangible assets

Listed stocks held by SB Northstar decreased mainly due to sales.

Yahoo Japan Corporation entered into an agreement with Oath Holdings
Inc. and other parties, with whom it had previously entered into a license
agreement, to acquire trademarks in Japan related to Yahoo! and Yahoo!
JAPAN etc. for ¥178.5 billion. Intangible assets increased as a result of
this acquisition.

H Investments accounted forusing the equity method

In addition to recording gain on equity method investments, the consolidated carrying amount for Alibaba increased due to the weaker yen
against the Chinese yuan at the second quarter-end.

I Investments from SVF1 andSVF2 accounted for using
FVTPL· The carrying amount of investments at SVF1 decreased by ¥1,778.0 billion, reflecting a decrease of $13.7 billion due to the sale of investments
and a decrease of $5.8 billion due to decreases in the fair values of portfolio companies held at the second quarter-end. This was partially offset
by an increase of $2.3 billion due to new and follow-on investments inexisting portfolio companies.
· The carrying amount of investments at SVF2 increased by ¥2,770.2 billion, reflecting an increase of $26.3 billion due to new and follow-on investments in existing portfolio companies, despite a decrease of $1.6 billion due to the sale of investments.
For details of the status of investments at SVF1 and SVF2, see “(b) SoftBank Vision Funds Segment” under “b. Results by Segment” in “(1)Overview of Results of Operations.”

42

SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 30, 2021

Components
J Investment securities

Main reasons for changes from the previous fiscal year-end· The carrying amount of T-Mobile shares decreased to ¥871,160 million
from ¥1,474,356 million at the previous fiscal year-end. This mainly reflected the sale to Deutsche Telekom of 45.4 million T-Mobile shares
held by the Company due to Deutsche Telekom’s partial exercise of call
options for T-Mobile shares.
· The Company received 225 million Deutsche Telekom shares as consideration for the sale of T-Mobile shares (the second quarter-end balance:¥507,727 million)· The carrying amount of investments from SoftBank Latin America
Funds increased by ¥448,116 million due to new and follow-on investments, as well as increases in the fair values of portfolio companies (thesecond quarter-end balance: ¥889,124 million).
· The shares of WeWork, InMobi Pte. Ltd. and Cybereason Inc. weretransferred to SVF2 and reclassified to “investments from SVF1 andSVF2 accounted for using FVTPL”. See “Investments transferred fromthe Company to SVF2” under “FINANCIAL RESULTS” in “(b) SoftBank Vision Funds Segment” in “(1) Overview of Results of Operations.”

K Derivative financial assets· Derivative financial assets related to prepaid forward contracts using
Alibaba shares increased by ¥220,704 million due to recording of derivative gains and newly concluded prepaid forward contracts, while the assets with a remaining term of one year or less were reclassified as current assets.
· The fair value of the Contingent Consideration related to T-Mobile
shares increased by ¥57,980 million (the second quarter-end balance:¥518,689 million).

43

SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 30, 2021

(Reference) Cash and cash equivalents by entity(Millions of yen)

SoftBank Group Corp. / Wholly owned
subsidiaries conducting fund procurement/ SB Northstar
SoftBank Group Corp.
Wholly owned subsidiaries conducting fundprocurement
SB Northstar
SoftBank Vision Funds segment
SVF1
SVF2
SBIA, SBGASoftBank segment
SoftBank Corp.
Z Holdings Corporation*1
Others*2
OthersTotal

March 31, 2021

September 30, 2021

Change2,202,778
1,948,177

2,648,810
2,392,752

446,032
444,575

33,320221,281

18,752
237,306(14,568)
16,02567,58063,47025,89543,96456,95524,160(23,616)(6,515)(1,735)

302,539
420,941
861,412718,110234,564
336,853955,271792,793(67,975)(84,088)
93,85974,683

4,662,725

5,093,370

430,645

Notes:
1. Includes Yahoo Japan Corporation and LINE Corporation.
2. Includes PayPay Bank Corporation, whose balance of cash and cash equivalents was ¥475,381 million at the second quarter-end.

44

SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 30, 2021(b) Liabilities(Millions of yen)March 31, 2021

September 30, 2021

Change7,735,239

7,122,992(612,247)

307,447

273,346(34,101)

Deposits for banking business

1,109,240

1,194,584

85,344

Trade and other payables

1,970,275

1,542,463(427,812)

Derivative financial liabilities in asset
management subsidiaries

14,673

1,788(12,885)

Derivative financial liabilities

322,213108,938(213,275) A

Other financial liabilities

51,285

92,13740,852

Income taxes payables

391,930

161,417(230,513) B

Provisions

24,93918,251(6,688)Other current liabilities

952,443

685,467(266,976) C

Liabilities directly relating to assets
classified as held for sale

11,271-(11,271) D

Total current liabilities

12,890,955

11,201,383(1,689,572)

Interest-bearing debt

10,777,736

13,024,167

2,246,431

727,554678,949(48,605)

6,601,791

5,853,663(748,128)

Derivative financial liabilities

32,692

83,52350,831Other financial liabilities

415,407464,760

49,353

Provisions

110,586

112,105

1,519

2,030,651

2,287,079

256,428 E

Other non-current liabilities

207,488

175,689(31,799)

Total non-current liabilities

20,903,905

22,679,935

1,776,030

Total liabilities

33,794,860

33,881,318

86,458Interest-bearing debt
Lease liabilities

Lease liabilities
Third-party interests in SVF1 and SVF2

Deferred tax liabilities

45

SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 30, 2021

Reasons for changes by primary component
Components
Main reasons for changes from the previous fiscal year-end*See “(Reference)” on the following page for a breakdown of interest-bearing debt.
Current liabilities
A Derivative financial liabilities· Derivative financial liabilities decreased by ¥113,499 million due to thepartial exercise of call options for T-Mobile shares by Deutsche Telekom (the second quarter-end balance: ¥91,322 million).
· With the completion of the tender offer for WeWork shares in April
2021, the Company reversed a derivative financial liability of ¥76,823
million recorded at the previous fiscal year-end as the difference between the valuation amount of common stock and preferred stock expected to be acquired and the planned acquisition amount. See “(1) Option contracts” and “(3) Forward contracts” under “10. Financial instruments” in “(6) Notes to Condensed Interim Consolidated Financial
Statements” in “3. Condensed Interim Consolidated Financial Statements and Primary Notes” for details.

B Income taxes payables

SBGJ paid income tax of ¥197,432 million based on taxable income including a gain on sale of shares of SoftBank Corp. generated in the previous fiscal year.

C Other current liabilities

Withholding income tax of ¥245,053 million was paid in relation to dividends paid from SBGJ to SBG in the previous fiscal year.

D Liabilities directly relating toassets classified as held forsale

Boston Dynamics, Inc.’s liabilities were presented in this category at theprevious fiscal year-end in conjunction with the classification of the company in the disposal group classified as held for sale; however, these liabilities were derecognized following the completion of the sale in thefirst quarter.

Non-current liabilities
E Deferred tax liabilities

Deferred tax liabilities increased due to an increase in the fair value ofderivative financial assets related to prepaid forward contracts using
Alibaba shares concluded in the fiscal years ended March 31, 2020 andMarch 31, 2021, as well as in the period.

46

SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 30, 2021

(Reference) Interest-bearing debt and lease liabilities (total of current liabilities and non-current liabilities)(Millions of yen)March 31, 2021

September 30, 2021

Change12,984,650

13,915,321

930,671

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
SoftBank Vision Funds segment
SVF1
Borrowings
SVF2
Borrowings
SBIA
Lease liabilities
SoftBank segment

6,158,350
1,152,934
4,745,549
13,367
246,500

7,497,889
1,245,677
6,002,397
12,715
237,100

1,339,539
92,743
1,256,848(652)(9,400)4,959,779
1,874,040

6,131,175
2,049,010

1,171,396
174,970

3,085,739
1,866,521
1,866,521

4,082,165
286,257
286,257

996,426(1,580,264)(1,580,264)

444,227444,227363
363

715,286
715,286
111,920
111,920349
349

271,059
271,059
111,920
111,920(14)(14)

SoftBank Corp.
Borrowings
Corporate bonds
Lease liabilities
Commercial paper
Z Holdings Corporation*2
Borrowings
Corporate bonds
Lease liabilities
Commercial paper
Other
Others4,166,323
3,037,229
260,000
706,393
162,701
1,030,980
442,406
543,992
44,582494,747

4,203,002
2,989,234
359,634
630,133
224,001
1,206,269
472,928
643,800
40,04149,500559,841

36,679(47,995)
99,634(76,260)
61,300175,289
30,52299,808(4,541)49,50065,094

Other interest-bearing debt
Lease liabilities

334,917
91,769302,638
84,828(32,279)(6,941)

19,547,976

21,099,454

1,551,478

SoftBank Group Corp. / Wholly owned
subsidiaries conducting fund procurement*1 /SB Northstar

Total

Notes:
1. The interest-bearing debt of wholly owned subsidiaries conducting fund procurement is non-recourse to SBG. However, $3.90
billion of borrowings made using T-Mobile shares is exceptionally guaranteed by SBG to a limit of $0.97 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 and LINE Corporation.

47

SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 30, 2021

Reasons for changes from the previous fiscal year-end at core companies
SBG / Wholly owned subsidiaries conducting fund procurement / SB Northstar
SBG· Domestic hybrid bonds of ¥405.0 billion were issued in the first quarter, while ¥455.6 billion was early redeemedin the second quarter.
· Foreign currency-denominated straight corporate bonds of $3.85 billion and €2.95 billion were issued in thesecond quarter.
· Domestic subordinated bonds of ¥500.0 billion were issued in the second quarter.
Wholly owned subsidiaries conducting fund procurement(Funds procured using Alibaba shares)· In the first quarter, borrowings of $1.88 billion were made using shares (margin loan).
· In the first quarter, a portion of the collar contracts of prepaid forward contracts were terminated early and $2.86
billion was repaid. Subsequently, $3.0 billion was newly procured through a conclusion of new collar contracts.
· In the second quarter, $7.35 billion was procured through new collar contracts and a forward contract after
amending certain collar contacts among the prepaid forward contracts.
See “(2) Transactions for sale of Alibaba shares by prepaid forward contract” in “9. Interest-bearing debt” in “(6)Notes to Condensed Interim Consolidated Financial Statements” in “3. Condensed Interim Consolidated Financial
Statements and Primary Notes” for details.
(Funds procured using T-Mobile shares)· In the second quarter, $1.81 billion was procured through prepaid forward contracts. Furthermore, $2.65 billion
was borrowed through a margin loan. Subsequently, borrowings of $4.38 billion made through a margin loan in
the previous fiscal year were repaid.
· In the second quarter, $1.25 billion was borrowed as a bridge loan through a margin loan. See “Notes 1,” “Notes
4,” and “Notes 6” under “(1) Components of interest-bearing debt” in “9. Interest-bearing debt” in “(6) Notes
to Condensed Interim Consolidated Financial Statements” in “3. Condensed Interim Consolidated Financial
Statements and Primary Notes” for details.
SB Northstar· A margin loan of $6.0 billion using Alibaba shares and short-term borrowings were repaid.
SoftBank Vision Funds segment· Borrowings made for the purpose of monetizing investments (Portfolio Financing Facility) increased by $2.37
billion at SVF1 and by $1.0 billion at SVF2.
SoftBank segment
SoftBank Corp.
· Domestic straight corporate bonds of ¥100.0 billion were issued.
· Commercial paper increased by ¥61.3 billion.
Z Holdings Corporation· Domestic straight corporate bonds of ¥100.0 billion were issued.
· Commercial paper increased by ¥49.5 billion at LINE Corporation.
Other· Commercial paper increased by ¥81.5 billion at YJ Card Corporation (currently PayPay Card Corporation).

48

SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 30, 2021(c) Equity(Millions of yen)March 31, 2021

September 30, 2021

ChangeCommon stock

238,772

238,772-

Capital surplus

2,618,504

2,595,649(22,855)

496,876

496,876-

Retained earnings

8,810,422

6,642,298

Treasury stock(2,290,077)(64,618)

2,225,459

B

338,329

639,585

301,256

C

267

-

(267)

Total equity attributable to owners of the parent

10,213,093

10,548,562

335,469

Non-controlling interests

1,742,500

1,790,908

48,408

Total equity

11,955,593

12,339,470

383,877

Other equity instruments

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

(2,168,124) A

Reasons for changes by primary component
Components
A Retained earnings

Main reasons for changes from the previous fiscal year-end· Net income attributable to owners of the parent of ¥363,569 million wasrecorded.
· ¥2,475,817 million*1 was deducted following the retirement of
366,860,600 treasury stock in May 2021 (equivalent to 17.6% of the total
number of issued shares as of April 30, 2021).

B Treasury stock· The Company repurchased 25,980,400 of its own shares for ¥257,777 million from April 1 to May 12, 2021 in accordance with a Board resolution
on July 30, 2020.
· The Company retired treasury stock in May 2021.

C Accumulated othercomprehensive income· Exchange differences from the translation of foreign operations, whicharise from translating overseas subsidiaries and associates into yen, increased by ¥285,754 million due to a weaker yen against the U.S. dollar
and the Chinese yuan.

Note:
1. The number of shares retired is the same as the number of shares acquired from the share repurchase (the “Share Repurchase”)
conducted in accordance with respective resolutions of the Board of Directors in March, May, June, and July 2020. However,
because the retirement amount is calculated based on the carrying amounts, including the treasury stock held by the Company
prior to the Share Repurchase, the retirement amount differs from the total repurchase amount of the Share Repurchase.

49SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 30, 2021

(3) Overview of Cash Flows

1. Cash flows from operating activities
Increase in cash inflows of ¥1,768.4 billion mainly due to the sale of investments by SB Northstar
2. Cash flows from investing activities
 Cash outflow totaled ¥1,956.7 billion (net) from investing activities mainly as a result of new
investments by SVF2 and sales of investments by SVF1.
- Payments for acquisition of investments by SVF1 and SVF2: ¥2,681.4 billion· Payments for acquisition of investments by SVF2 of ¥2,553.0 billion- Proceeds from sale of investments by SVF1 and SVF 2: ¥1,365.8 billion· Proceeds from sale of investments by SVF1 of ¥1,219.3 billion due to partial sales of shares ofnine portfolio companies including DoorDash, Coupang, and Uber
3. Cash flows from financing activities
 Cash inflow of ¥254.4 billion (net) from financing activities for various actions taken for debt repayment
and new investments- Proceeds from issuance of corporate bonds and payments for redemption of corporate bonds· SBG issued domestic hybrid bonds of ¥405.0 billion, foreign currency-denominated straight
corporate bonds of $3.85 billion and €2.95 billion, and domestic subordinated bonds of ¥500.0
billion.
· SBG redeemed domestic hybrid bonds of ¥455.6 billion early.
- Proceeds from fund procurement using Alibaba shares· A total of $10.35 billion procured through new prepaid forward contracts· A total of $1.88 billion procured through margin loan
- Proceeds from borrowings by SVF1 and SVF2 and distribution/repayment from SVF1 to third-party
investors· SVF1 procured $2.80 billion and SVF2 procured $1.90 billion through the borrowings made forthe purpose of monetizing investments (Portfolio Financing Facility).
· SVF1 distributed ¥857.9 billion to third-party investors- Repayment of borrowings by SB Northstar· Repaid $6.00 billion of margin loan and ¥930.8 billion (net) of short-term borrowings(Millions of yen)Six months ended September 30
2020
2021
Cash flows from operating activities
Cash flows from investing activities
Cash flows from financing activities

531,867(322,186)
1,591,071

2,078,239(1,956,685)
254,432

Change1,546,372(1,634,499)(1,336,639)(a) Cash Flows from Operating Activities

Cash flows from operating activities increased by ¥1,546,372 million year on year. This was mainly due to anincrease in cash inflow of ¥1,768,429 million resulting mainly from the sale of investments by SB Northstar.
The amount of income taxes paid (cash outflow) increased by ¥298,502 million year on year. This was mainly
due to payment in the first quarter of corporate taxes on taxable income at SBGJ including gains on the sale of
SoftBank Corp. shares generated in the previous fiscal year, as well as payment of withholding income tax on
dividends from SBGJ to SBG. Of this, the withholding income tax was refunded in the second quarter.

50

SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 30, 2021

(b) Cash Flows from Investing Activities

Primary components
Components
Payments for acquisition of
investments¥(666,003) million

Primary details· SoftBank Latin America Funds made new and follow-on investments
totaling $2.3 billion.
· The Company acquired preferred stocks and common stocks of
WeWork by tender offer, which was completed in April 2021, for¥101,377 million.
· The unpaid acquisition price of ¥115,227 million for shares of a newcompany established through the business integration of Z Holdings
Corporation and LINE Corporation was paid after the shares were acquired from non-controlling interests in the previous fiscal year.

Payments for acquisition of
investments by SVF1 and SVF2¥(2,681,439) million· SVF2 made new and follow-on investments totaling $23.2 billion.
· SVF1 made follow-on investments totaling $1.2 billion.

Proceeds from sales of investments by SVF1 and SVF2
¥1,365,766 million· SVF1 sold a portion of its shares in nine portfolio companies, including DoorDash, Coupang, and Uber.
· SVF2 sold all of its shares in one portfolio company and a portion ofits shares in KE Holdings.

Purchase of property, plant andequipment and intangible assets¥(535,121) million· Yahoo Japan Corporation purchased intangible assets following an execution of an agreement with Oath Holdings Inc. and other parties,
with whom it had previously entered into a license agreement, to acquire trademarks in Japan related to Yahoo! and Yahoo! JAPAN etc.
and paid ¥178.5 billion.
· SoftBank Corp. purchased telecommunications equipment.

Proceeds from withdrawal ofrestricted cash
¥359,058 million

In April 2021, restricted cash (a deposit of $3.3 billion required for the
early termination procedure of a portion of the collar contracts out of the
prepaid forward contracts using Alibaba shares) recorded at the previous
fiscal year-end was withdrawn. In the same month, a payment of $2.86
billion was completed for the early termination, and the cash outflow associated with the transaction was recorded as “repayment of interestbearing debt” (cash flows from financing activities).

51

SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 30, 2021

(c) Cash Flows from Financing Activities

Primary components
Components
Proceeds in short-term
interest-bearing debt, net¥(908,254) million*1(Proceeds and payments for interestbearing debt (current liabilities) with
fast turnover and short maturities)

Primary details· Short-term borrowings at SB Northstar decreased by ¥930,763 million(net).
· SoftBank Corp.’s short-term borrowings decreased by ¥89,415 million(net).
· YJ Card Corporation (currently PayPay Card Corporation) and LINE
Corporation issued commercial paper of ¥66,500 million (net) and¥44,500 million (net), respectively.

Proceeds from interest-bearing debt
¥6,955,021 million
Proceeds from borrowings¥3,692,760 million*2· SBG made short-term borrowings of ¥1,349,870 million.
· The Company’s wholly owned subsidiaries conducting fund procurement borrowed $1.88 billion through a margin loan using Alibaba
shares and also borrowed $2.65 billion through a margin loan and$1.25 billion through a bridge loan, using T-Mobile shares.
· SVF1 and SVF2 borrowed $2.80 billion and $1.90 billion through a financing facility made for the purpose of monetizing investments (Portfolio Financing Facility).
· SoftBank Corp. procured ¥137,400 million through commercial paper andborrowed ¥487,467 million through the securitization of installment salesreceivables and sale and leaseback transactions.
· Z Holdings Corporation borrowed ¥243,700 million.

Proceeds from issuance ofcorporate bonds¥1,920,055 million· SBG issued domestic hybrid bonds of ¥405,000 million, foreign currency-denominated straight corporate bonds of $3.85 billion and €2.95
billion, and domestic subordinated bonds of ¥500,000 million.
· SoftBank Corp. issued domestic straight corporate bonds of ¥100,000
million.
· Z Holdings Corporation issued domestic straight corporate bonds of¥100,000 million.

Proceeds from procurement
by prepaid forward
contracts using shares¥1,342,206 million

The Company’s wholly owned subsidiaries conducting fund procurement procured an aggregate amount of $10.35 billion through several
prepaid forward contracts using Alibaba shares. They also procured anaggregate amount of $1.81 billion through prepaid forward contracts using T-Mobile shares.

52SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 30, 2021

Components
Primary details
Repayment of interest-bearing debt¥(4,295,720) million
Repayment of borrowings¥(3,520,633) million*2· SBG repaid short-term borrowings of ¥1,225,568 million.
· SB Northstar repaid a margin loan using Alibaba shares of $6.00 billion.
· The Company’s wholly owned subsidiaries conducting fund procurement repaid a margin loan using T-Mobile shares of $4.38 billion borrowed in the previous fiscal year.
· SVF1 and SVF2 repaid $0.43 billion and $0.90 billion, respectively, inborrowings made for the purpose of monetizing investments (Portfolio
Financing Facility).
· SoftBank Corp. repaid ¥73,100 million in commercial paper and¥448,135 million in borrowings related to the securitization of installment sales receivables and sale and leaseback transactions.
· LINE Corporation repaid ¥151,577 million of borrowings.

Redemption of corporatebonds¥(455,600) million

SBG redeemed domestic hybrid bonds of ¥455,600 million early.

Payment of the settlementof the variable prepaid
forward contract¥(319,487) million

In April 2021, the Company paid $2.86 billion for early termination of a
portion of the collar contracts out of the prepaid forward contracts using
Alibaba shares.

Distribution/repayment from
SVF1 to third-party investors¥(857,907) million

SVF1 made distributions to third-party investors.

Purchase of treasury stock¥(257,784) million

SBG repurchased its own shares up to May 12, 2021 in accordance witha Board resolution on July 30, 2020.

Cash dividends paid to
non-controlling interests¥(148,911) million

SoftBank Corp. and Z Holdings Corporation paid dividends to noncontrolling interests.

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 ¥2,212,685 million and outlays of ¥1,607,314
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.

53

SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 30, 2021

Notes regarding “1. Overview of Results of Operations”
The ratio of liabilities to holding assets, calculated as adjusted net interest-bearing debt divided by equity value of holdings. The
Company strives to manage this below 25% in normal times in financial markets, with an upper threshold of 35% in times of
emergency. Equity value of holdings and adjusted net interest-bearing debt each exclude amounts to be settled at maturity or
borrowings that are part of asset-backed finance. The calculation of adjusted net interest-bearing debt also excludes, from theCompany’s consolidated figures, interest-bearing debt and cash and cash equivalents, etc. attributable to listed subsidiaries suchas SoftBank Corp. and Z Holdings Corporation, as well as entities managed on a self-financing basis, such as SoftBank Vision
Fund 1, SoftBank Vision Fund 2, SoftBank Latin America Funds, Arm, PayPay Corporation, and Fortress Investment Group,
along with SB Northstar.
2 Includes a share exchange. In the first quarter, SVF1 exchanged all of its shares in PT Tokopedia (“Tokopedia”) for shares in
GoTo, a newly formed company as a result of merger between Tokopedia and PT Aplikasi Karya Anak Bangsa. This shareexchange is treated as a full exit (entire sale) from the investment and an acquisition of the new investment, with the sale priceand acquisition cost being recorded in gross, respectively, and with the difference between the acquisition cost of shares initiallyheld and sale price (acquisition cost of the exchanged shares) being recorded as realized gain and loss on the investments.
3 Interest expenses of SBG include interest expenses of its wholly owned subsidiaries conducting fund procurement.
4 The Company applied the equity method to Alibaba’s consolidated financial statements (the Company’s economic interests in
Alibaba as of June 30, 2021: 24.90%) for each reporting period on a three-month time lag because it is impractical to alignreporting periods with Alibaba due to contracts with the company, among others. Necessary adjustments are made to reflectsignificant transactions and events announced by Alibaba during the period on a three-month time lag.
5 As of the second quarter-end, only Masayoshi Son, SBG’s Representative Director, Corporate Officer, Chairman & CEO, invests
in MgmtCo. Participation by members of management other than Masayoshi Son was undecided as of October 31, 2021; however,such participation is planned for the future.
6 For the nature of equity and preferred equity, see “(1) Introduction of Co-investment Program with Restricted Right to Receive
Distributions and Preferred Equity to SVF2” under “4. SoftBank Vision Funds business” in “(6) Notes to Condensed Interim
Consolidated Financial Statements” in “3. Condensed Interim Consolidated Financial Statements and Primary Notes.”
7 As of the second quarter-end, none of the investment amounts from MgmtCo has been paid.
8 SVF2 LLC’s receivables include the transaction amounts incurred in connection with the acceptance of MgmtCo’s capital contribution. Such transaction amounts include (i) MgmtCo's interest of 17.25% of the aggregate of the initial acquisition cost of investments held by SVF2 LLC and amounts of contributions made by the Company to SVF2 to meet other costs, (ii) increase infair market value of the investments from its initial acquisition cost at SVF2 to 30 June 2021 multiplied by MgmtCo's interest of
17.25% and (iii) adjustments equivalent to the interest incurred for the period from the Company's contribution to SVF2 until 30
June 2021.
9 For investments outside the scope of the co-investment program, see the Data Sheets in “Materials” under “Earnings Results
Briefing” on the Company’s website at https://group.softbank/en/ir/presentations/.
10 Drawn capital of SVF1 excludes the amount repaid to limited partners due to investment plan changes and other reasons after thecapital was drawn.
11 After deducting transaction fees, etc.
12 This analysis is based on the actual shipments of royalty units (chips incorporating Arm technology) by Arm licensees for the sixmonth period ended June 30, 2021, as reported by licensees in royalty reports. Arm’s licensees report their actual shipments ofroyalty units one quarter in arrears, and therefore, the royalty unit analysis for the period is based on chips shipped for the sixmonth period ended June 30, 2021. In contrast, royalty revenues are accrued in the same quarter the chips are shipped, based on
estimates.
13 World Semiconductor Trade Statistics (WSTS) as of August 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 thesurvey.
14 For SBLAF1, investments in unlisted companies made on or after June 24, 2021 are subject to these.
15 In addition to the Company’s commitment, a co-investment program of employees involved in the management of the fund has
committed $7 million (the program’s interest is deducted as third-party interests) to the fund.
1

54

SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 30, 2021

2. Notes to Summary Information(1) Significant Changes in Scope of Consolidation for the Six-Month Period Ended September 30, 2021
(Specified subsidiary (one entity) excluded from the scope of consolidation)
On June 21, 2021, the Company sold the majority of shares in Boston Dynamics, Inc. (“Boston Dynamics”)
held by the Company through a wholly-owned subsidiary to Hyundai Motor Company and its affiliates(collectively, the “Hyundai Motor Group”) and Euisun Chung, Chairman of Hyundai Motor Group. On thesame date, Hyundai Motor Group and Euisun Chung subscribed for additional shares of Boston Dynamics.
Upon completion of the transaction, Boston Dynamics, which was a specified subsidiary of the Company,
was no longer a subsidiary of the Company. The details are described in “Note 7. Disposal group classified
as held for sale” in “(6) Notes to Condensed Interim Consolidated Financial Statements” under “3.
Condensed Interim Consolidated Financial Statements and Primary Notes.”(2) Changes in Accounting Estimates(Reversal of impairment losses on equity method investments)
Reversal of impairment losses on equity method investments was recorded for the equity method investment
in WeWork Inc., an equity method associate of the Company. The details are described in “Notes 3” in“Note 16. Other gain” in “(6) Notes to Condensed Interim Consolidated Financial Statements” under “3.
Condensed Interim Consolidated Financial Statements and Primary Notes.”

55

SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 30, 2021

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

SVF1

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

SVF2

SoftBank Vision Fund II-2 L.P. and its alternative investment vehicles

SVF2 LLC

SVF II Investment Holdings LLC

SBIA

SB Investment Advisers (UK) Limited

SBGA

SB Global Advisers Limited

Arm

Arm Limited

SoftBank Latin America Funds

SLA Latin America Fund LLC

Fortress

Fortress Investment Group LLC

SprintSprint Corporation

Alibaba

Alibaba Group Holding Limited

WeWork

WeWork Inc.

MgmtCoMASA USA LLC

56

SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 30, 2021

From the three-month period ended June 30, 2021, the account of condensed interim consolidated statement ofcash flows has been changed as follows:
Condensed Interim Consolidated Statement of Cash Flows
Previous

Current

Proceeds from sales of investments by SVF1

Proceeds from sales of investments by SVF1 and SVF2

From the three-month period ended September 30, 2021, the names of accounts and a reportable segment havebeen changed as follows:
Condensed Interim Consolidated Statement of Financial Position
Previous

Current

Third-party interests in SVF1

Third-party interests in SVF1 and SVF2

Condensed Interim Consolidated Statement of Income
Previous
Change in third-party interests in SVF1

Current
Change in third-party interests in SVF1 and SVF2

Condensed Interim Consolidated Statement of Cash Flows
Previous
Change in third-party interests in SVF1

Current
Change in third-party interests in SVF1 and SVF2

Segment information
Previous
SVF1 and Other SBIA-Managed Funds segment

Current
SoftBank Vision Funds segment

57SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 30, 2021

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

As ofMarch 31, 2021

AssetsCurrent assets
Cash and cash equivalents
Trade and other receivables
Investments from asset management subsidiaries
Securities pledged as collateral in asset management
subsidiaries
Derivative financial assets in asset management
subsidiaries
Derivative financial assets
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

58

As of
September 30, 2021

4,662,725
2,216,434
658,227

5,093,370
2,009,419
319,485

1,427,286

67,923

188,056

129,089

383,315
671,907
126,830
446,739
10,781,519
38,647
10,820,166

720,984
294,090
128,599
216,6628,979,621
8,979,621

1,668,578
1,147,020
4,684,419
2,308,370
246,996
4,349,971

1,705,414
1,011,800
4,706,186
2,412,018
278,814
4,825,476

13,646,774

14,638,981

3,706,784
908,660
1,919,262
206,069
137,384
34,930,287
45,750,453

3,898,424
1,201,116
2,257,290
176,853
128,795
37,241,167
46,220,788

SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 30, 2021

(Millions of yen)

As ofMarch 31, 2021

Liabilities and equity
Current liabilities
Interest-bearing debt
Lease liabilities
Deposits for banking business
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 forsale
Total current liabilities
Non-current liabilities
Interest-bearing debt
Lease liabilities
Third-party interests in SVF1 and SVF2
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

59

As of
September 30, 2021

7,735,239
307,447
1,109,240
1,970,275

7,122,992
273,346
1,194,584
1,542,463

14,673

1,788

322,21351,285391,930
24,939952,443
12,879,684

108,938
92,137
161,417
18,251
685,467
11,201,383

11,271-

12,890,955

11,201,383

10,777,736
727,554
6,601,791
32,692415,407
110,586
2,030,651
207,488
20,903,905
33,794,860

13,024,167
678,949
5,853,663
83,523464,760
112,105
2,287,079
175,689
22,679,935
33,881,318

238,7722,618,504
496,876
8,810,422(2,290,077)
338,329
10,212,826

238,772
2,595,649
496,876
6,642,298(64,618)
639,585
10,548,562

267-

10,213,093

10,548,562

1,742,500
11,955,593
45,750,453

1,790,908
12,339,470
46,220,788

SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 30, 2021

(2) Condensed Interim Consolidated Statement of Income and Condensed Interim Consolidated Statement ofComprehensive Income
For the six-month period ended September 30
Condensed Interim Consolidated Statement of Income(Millions of yen)Six-month period ended
September 30, 2020

Six-month period ended
September 30, 2021

2,630,531(1,210,719)
1,419,812

2,983,504(1,348,471)
1,635,033

579,614279,928

1,336,638(879,186)

63,46853,5912,033,311

193,698
10,325(395,235)(1,011,301)(153,808)
200,830(1,186,672)(185,599)
265,331(761,557)

620,959(457,537)
171,722
1,441,472(272,282)
1,169,190

195,179
97,975
1,046,971(456,846)
590,125

Discontinued operations
Net income from discontinued operations
Net income

710,187
1,879,377

590,125

Net income attributable to
Owners of the parent
Net income from continuing operations
Net income from discontinued operations

1,883,211
1,172,737
710,474

363,569
363,569-

Non-controlling interests
Net income from continuing operations
Net income from discontinued operations
Net income(3,834)(3,547)(287)
1,879,377

226,556
226,556
590,125589.02361.52950.54202.46202.46542.35360.71903.06

195.62
195.62

Continuing operations
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, SVF2, andothersGain on investments at Latin America Funds
Gain on other investments
Total gain on investments
Selling, general and administrative expenses
Finance cost
Income on equity method investments
Derivative gain (loss) (excluding gain (loss)
on investments)
Change in third-party interests in SVF1 and SVF2
Other gain
Income before income tax
Income taxes
Net income from continuing operations

Earnings per share
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

60SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 30, 2021

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

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

61

Six-month period ended
September 30, 2020

Six-month period ended
September 30, 2021

1,879,377

590,125

5,486

12,765

5,486

12,765825
30,722200
3,501(364,835)

303,164

10,744(17,594)(322,544)

289,271(317,058)
1,562,319

302,036
892,161

1,059,869
502,450

892,161-

1,563,669

664,724

1,060,932

664,724

502,737-(1,350)1,562,319

227,437
892,161SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 30, 2021

For the three-month period ended September 30
Condensed Interim Consolidated Statement of Income(Millions of yen)Three-month period ended
September 30, 2020Three-month period ended
September 30, 2021

1,350,558(628,218)
722,340

1,504,370(681,308)
823,062(70,879)(461,598)

1,040,061(1,167,067)

40,18741,022
1,050,391(25,670)(3,968)(1,658,303)(506,727)(76,815)
194,257(593,242)(102,800)
214,951(585,732)

732,495(309,894)
119,532
607,352(20,123)587,229

329,272
9,058(245,507)(96,857)(342,364)

Discontinued operations
Net income from discontinued operations
Net income(24,273)
562,956(342,364)

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
Net income

627,499
651,594(24,095)(64,543)(64,365)(178)
562,956(397,940)(397,940)
55,57655,576(342,364)

338.11(12.65)325.46(236.86)(236.86)315.62(12.61)303.01(241.19)(241.19)

Continuing operations
Net sales
Cost of sales
Gross profit
Gain on investments
Loss on investments at Investment Business of
Holding Companies
Gain (loss) on investments at SVF1, SVF2, andothersGain (loss) on investments at Latin America Funds
Gain (loss) 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 and SVF2
Other gain
Income before income tax
Income taxes
Net income from continuing operations

Earnings per share
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

SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 30, 2021

Condensed Interim Consolidated Statement of Comprehensive Income(Millions of yen)Three-month period ended
September 30, 2020Three-month period ended
September 30, 2021

562,956(342,364)

3,539

493

3,539

493

248
2,097

(137)
303

(145,744)

256,317

3,216(18,851)(140,183)

237,632(136,644)
426,312238,125(104,239)

448,231(21,919)(104,239)-

490,183(158,371)

511,924(158,371)(21,741)-(63,871)426,31254,132(104,239)

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

63SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 30, 2021

(3) Condensed Interim Consolidated Statement of Changes in Equity
For the six-month period ended September 30, 2020
(Millions of yen)

Equity attributable to owners of the parent

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

Comprehensive income
Net income
Other comprehensive Income

-

-

-

1,883,211--

1,883,211

-

-

-

-

-

(113,847)(113,847)

Total comprehensive income

-

-

-

1,883,211-(113,847)

1,769,364---(45,496)--(45,496)---(15,339)--(15,339)

-

-

-

451

-

(451)

-

-

-

-

268

(1,011,656)-(1,011,388)-

914,767

-

-

-

-

914,767-(12,115)

-

-

-

-

(12,115)

-

1,243

-

-

-

-

1,243

-

(6,201)

-

-

-

-

(6,201)

-

-

-

-

-

4,946

4,946

-

-

-

-

-

-

-

-

897,694-(60,116) (1,011,656)

4,495(169,583)

238,772

2,388,019

496,876(471,611)

7,307,699

As of April 1, 2020

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 interests in subsidiaries
Changes in associates’ interests intheir subsidiaries
Changes in interests in associates’
capital surplus
Share-based payment transactions
Transfer of accumulated othercomprehensive income held for
sale
Other
Total transactions with owners
and other transactions
As of September 30, 2020

64

5,768,915(1,113,272)

SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 30, 2021

(Millions of yen)

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

Total

Noncontrollinginterests

Total equity

As of April 1, 2020

205,695

5,913,613

1,459,304

7,372,917

Comprehensive income
Net income
Other comprehensive income-

1,883,211(3,834)

1,879,377(205,695)(319,542)

2,484(317,058)

Total comprehensive income(205,695)

1,563,669(1,350)1,562,319-(45,496)(93,597)(139,093)-(15,339)-(15,339)

-

-

-

-

-

(1,011,388)-(1,011,388)-

914,767(424,653)
179,369(424,653)
1,094,136-(12,115)-(12,115)

-

1,243

-

1,243

-

(6,201)(941)(7,142)(4,946)

-

-

-

-

-

(280)

(280)

(4,946)(174,529)(340,102)(514,631)(4,946)

7,302,753

1,117,852

8,420,605

Transactions with owners andother transactions
Cash dividends
Distribution to owners of other
equity instruments
Transfer of accumulated othercomprehensive income toretained earnings
Purchase and disposal of treasury
stock
Changes from loss of control
Changes in interests in subsidiaries
Changes in associates’ interests intheir subsidiaries
Changes in interests in associates’
capital surplus
Share-based payment transactions
Transfer of accumulated othercomprehensive income held for
sale
Other
Total transactions with owners

and other transactions
As of September 30, 2020

65

SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 30, 2021

For the six-month period ended September 30, 2021
(Millions of yen)

Equity attributable to owners of the parent

As of April 1, 2021

Commonstock

Capitalsurplus

Other equity
instruments

Retainedearnings

Treasurystock

Accumulated
othercomprehensive
income338,329

10,212,826

Subtotal

238,7722,618,504

496,876

8,810,422(2,290,077)

Comprehensive income
Net income
Other comprehensive income

-

-

-

363,569--

363,569

-

-

-

-

-

301,422

301,422

Total comprehensive income

-

-

-

363,569-

301,422664,991---(38,247)--(38,247)---(15,676)--(15,676)

-

-

-

166

-

(166)

-

-

-

-

(2,119)(250,358)-(252,477)-(2,358)-(2,475,817)-

2,475,817--(2,358)-(20,033)

-

-

-

-

(20,033)

-

(11)

-

-

-

-

(11)

-

(453)
-

-

-

-

-

(453)
-

-

(22,855)-(2,531,693)

2,225,459(166)(329,255)

238,772

2,595,649

496,876

6,642,298(64,618)

639,585

10,548,562

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 loss of control
Changes in interests in subsidiaries
Changes in associates’ interests intheir subsidiaries
Changes in interests in associates’
capital surplus
Share-based payment transactions
Other
Total transactions with owners
and other transactions
As of September 30, 2021

66

SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 30, 2021

(Millions of yen)

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

Total

Noncontrollinginterests

Total equity

As of April 1, 2021

267

10,213,093

1,742,500

11,955,593

Comprehensive income
Net income
Other comprehensive income-

363,569

226,556

590,125(267)

301,155881

302,036

Total comprehensive income(267)

664,724

227,437

892,161-(38,247)(149,098)(187,345)-(15,676)-(15,676)

-

-

-

-

-

(252,477)-(252,477)

-

-

-

-

-

(2,358)(15,864)(19,945)(15,864)(22,303)-(20,033)-(20,033)

-

(11)

-

(11)

-

(453)
-

6,720
(842)

6,267
(842)

-

(329,255)(179,029)(508,284)-

10,548,562

1,790,908

12,339,470

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 loss of control
Changes in interests in subsidiaries
Changes in associates’ interests intheir subsidiaries
Changes in interests in associates’
capital surplus
Share-based payment transactions
Other
Total transactions with owners
and other transactions
As of September 30, 2021

67SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 30, 2021

(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(Gain) loss on investments at SVF1, SVF2, and others
Gain on investments at Latin America Funds
Finance cost
Income on equity method investments
Derivative loss (gain) (excluding (gain) loss on
investments)
Change in third-party interests in SVF1 and SVF2
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) decrease in securities pledged as collateral inasset management subsidiaries
Decrease (increase) in trade and other receivables
Decrease (increase) in inventories
Decrease in trade and other payables
Gain relating to loss of control over discontinued
operations
Other
SubtotalInterest and dividends received
Interest paid
Income taxes paid
Income taxes refunded
Net cash provided by operating activities
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 and SVF2
Payments for acquisition of investments by asset
management subsidiaries
Proceeds from loss of control over subsidiaries
Payments for acquisition of marketable securities for
short-term trading
Proceeds from sales/redemption of marketable securities
for short-term trading
Purchase of property, plant and equipment, andintangible assets
Payments for loan receivables
Collection of loan receivables
Proceeds from withdrawal of restricted cash
Payments into trust accounts in SPACs
Other
Net cash used in investing activities
68

Six-month period ended
September 30, 2020

Six-month period ended
September 30, 2021

1,169,190
710,187
1,879,377
411,108

590,125
590,125
422,753(975,102)(219,460)(1,336,638)(63,468)
155,652(200,557)

879,186(193,698)
185,599(265,331)

761,555(620,959)

457,537(210,219)
274,105(195,179)(108,300)
456,846

713,091

341,246(289,816)

47,638(213,476)

1,354,014

26,126
1,278(82,499)(430)(1,946)(130,525)(721,404)-

197,095
783,745
14,045(132,706)(394,758)
261,541
531,867

135,435
2,677,014
18,879(182,272)(693,260)
257,878
2,078,239(3,007,576)
2,888,033(666,003)
235,833(219,962)(2,681,439)

281,456

1,365,766-(81,675)

4,957

130,954(48,690)(59,200)

199,655

59,200(339,188)(535,121)(132,832)
8,276
11,049(73,306)
105,942(322,186)(99,022)
43,334359,058(5,500)(22,870)(1,956,685)

SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 30, 2021

(Millions of yen)

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 non-controlling interests subject topossible redemption
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
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 period69

Six-month period ended
September 30, 2020

Six-month period ended
September 30, 2021

788,983
3,657,623(3,408,750)(214,636)
764,660(908,254)
6,955,021(4,295,720)(179,201)
82,808(421,464)(857,907)

73,3065,500

1,526,867

458(1,201)(42,469)(15,339)(1,024,068)(45,449)(93,250)
3,789
1,591,071(15,676)(257,784)(38,196)(148,911)(45,237)
254,432(18,108)

54,659(46,497)-

1,736,147
3,369,015
5,105,162

430,645
4,662,725
5,093,370

SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 30, 2021

(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 financial position)“Derivative financial assets (current),” which was included in “Other financial assets (current)” in the past fiscal
year, is separately presented from the three-month period ended September 30, 2021 since the amount increased
and became significant. In order to reflect the change in presentation, ¥383,315 million, which was included in“Other financial assets (current)” as of March 31, 2021, is reclassified as “Derivative financial assets (current).”(Condensed interim consolidated statement of income and condensed interim consolidated statement ofcomprehensive income)“Gain on investments at Latin America Funds,” which was included in “Gain on other investments” in the pastfiscal year, is separately presented from the three-month period ended June 30, 2021 since the amount increased
and became significant. In order to reflect the change in presentation, ¥63,468 million and ¥40,187 million, whichwere included in “Gain on other investments” for the six-month period ended September 30, 2020 and the threemonth period ended September 30, 2020, are reclassified as “Gain on investments at Latin America Funds.” Thedetails of Latin America Funds are described in “Note 3. Segment information.”70SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 30, 2021

2. Significant accounting policies
Significant accounting policies applied to the condensed interim consolidated financial statements are consistent
with the accounting policies applied to the consolidated financial statements for the fiscal year ended March 31,
2021. In addition, income taxes for the six-month period ended September 30, 2021 are calculated based on theestimated effective tax rate for the fiscal year.
Significant accounting policies for the SoftBank Vision Funds segment and for the asset management subsidiary
are consistent with the accounting policies applied to the consolidated financial statements for the fiscal year
ended March 31, 2021. The details are described in “(1) Significant accounting policies for the SoftBank Vision
Funds segment.” and “(2) Significant accounting policies for the asset management subsidiary.”(1) Significant accounting policies for the SoftBank Vision 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 their respective general partners which are whollyowned subsidiaries of the Company (SVF2 owns limited liability companies including SVF2 LLC) as its
subsidiaries and by their forms of organization, qualify as structured entities. SVF1 and SVF2 areconsolidated by the Company for the following reasons.
As of September 30, 2021, SVF1 and SVF2 are managed by SBIA and SBGA, respectively, which are
wholly-owned subsidiaries of the Company in the UK. SVF2 was previously managed by SBIA and has been
managed by SBGA since September 2021. SVF1 and SVF2 make investment decisions through each
investment committee, which was established in SBIA and SBGA, respectively. As such, the Company has
power as defined under IFRS 10 “Consolidated Financial Statements” over SVF1 and SVF2. Furthermore,
SBIA and SBGA receive performance fees and the Company receives distributions attributable to limited
partners based on the investment performance as returns from SVF1 and SVF2. The Company has the ability
to affect those returns through its power over SVF1 and SVF2, and therefore, the Company is deemed to havecontrol as stipulated in IFRS 10 “Consolidated Financial Statements” over SVF1 and SVF2.
Inter-company transactions such as management fees and performance fees to SBIA and SBGA paid or to be
paid from SVF1 and SVF2 are eliminated in consolidation.

71

SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 30, 2021

b. Portfolio company investments made by SVF1 and SVF2(a) Investments in subsidiaries
Of the portfolio company investments made by SVF1 and SVF2, the portfolio companies that theCompany is deemed to control under IFRS 10 “Consolidated Financial Statements” are subsidiaries of theCompany. Accordingly, their results of operations, assets and liabilities are included in the Company’s
condensed interim consolidated financial statements.
Gain and loss on investments in the subsidiaries of the Company which are recognized in SVF1 and SVF2
are eliminated in consolidation.
(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 “Investments in Associates
and Joint Ventures” and presented as “Investments from SVF1 and SVF2 accounted for using FVTPL” inthe condensed interim consolidated statement of financial position. The payments for these investments
are presented as “Payments for acquisition of investments by SVF1 and SVF2” and the proceeds fromsales of these investments are presented as “Proceeds from sales of investments by SVF1 and SVF2”
under cash flows from investing activities in the condensed interim consolidated statement of cash flows.
If the investments in associates and joint ventures that were transferred from SoftBank Group Corp. and its
subsidiaries to SVF1 or SVF2 were accounted for using the equity method prior to the transfer, theseinvestments continue to be accounted for using the equity method after the transfer to SVF1 or SVF2 andpresented as “Investments accounted for using the equity method” in the condensed interim consolidated
statements of financial position. Gain and loss on the investments which were recognized in SVF1 or
SVF2 are eliminated in consolidation and gain and loss on the investments accounted for using the equity
method are presented as “Income on equity method investments” in the condensed interim consolidated
statements of income.
(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 of cash
flows are the same as the above “(b) Investments in associates and joint ventures.”72SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 30, 2021

c. Contribution from limited partners in SVF1 and SVF2 and investors in SVF2 LLC (collectively “SVF
Investors”)
The Company introduced a co-investment program with restricted rights to receive distributions to SVF2 inAugust 2021. Accordingly, SVF Investors other than the Company have invested in SVF2 for the purpose of
the program since the three-month period ended September 30, 2021. The details are described in “(1)Introduction of Co-investment Program with Restricted Rights to Receive Distributions and Preferred Equity
to SVF2” under “Note 4. SoftBank Vision Funds business.”(a) Contribution from SVF Investors other than the Company (“Third-Party Investors,” and each a “ThirdParty Investor”)
The interests attributable to Third-Party Investors in SVF1 and SVF2 are classified as financial liabilities,“Third-party interests in SVF1 and SVF2” in the condensed interim consolidated statement of financial
position, due to the predetermined finite life and contractual payment provision to each of Third-Party
Investors at the end of the finite life within the constitutional agreements relating to SVF1 and SVF2. 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 constitutional agreements in a theoretical liquidation scenario at the end of eachquarter.
Third-Party Investor in SVF2 is entitled to make full or partial payment of their investment and related
adjustments at any point in time, at its discretion, from the date it became an investor in SVF2 LLC to theend of company life of SVF2 LLC, and as of September 30, 2021, the Company has recognizedreceivables from Third-Party Investor. The receivables are included in “Other financial assets (noncurrent)” in the condensed interim consolidated statement of financial position.
“Third-party interests in SVF1 and SVF2” fluctuates due to the results of SVF1 and SVF2 in addition tocontributions from Third-Party Investors, and distributions and repayments of investments to Third-Party
Investors, respectively. The fluctuations due to the results of SVF1 and SVF2 are presented as “Change inthird-party interests in SVF1 and SVF2” in the condensed interim consolidated statement of income.
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 from financing
activities in the condensed interim consolidated statement of cash flows. No cash contributions into SVF2
from Third-Party Investor and no cash distribution/repayment from SVF2 to Third-Party Investor weremade as of September 30, 2021.
(b) Contribution from the Company
Contributions to SVF1 and SVF2 from the Company are eliminated in consolidation.

73

SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 30, 2021

(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, credit transactions, and others for diversification of
the assets held and management of surplus funds. “The asset management subsidiary” described in thecondensed 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 in securities 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 inaccordance with IFRS 9 “Financial Instruments” and presented as “Investments from assets management
subsidiaries” under current assets in the condensed interim consolidated statement of financial position. At
initial recognition, the investments are measured at fair value and transaction costs directly arising from theacquisition of financial assets are recognized as net of profit and loss. Subsequent to initial recognition, they
are measured at fair value and valuation gains and losses arising from changes in fair value and dividend
income are included in “Gain (loss) on investments at Investment Business of Holding Companies” in thecondensed interim consolidated statement of income. In addition, the changes in investment amounts due toacquisition and sale of investments from SB Northstar are presented as net of “(Increase) decrease ininvestments 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 theequity method” in the condensed interim consolidated statement of financial position.
The investments in convertible bonds made by SB Northstar are accounted for as financial assets at FVTPL
and are included in “Other financial assets (non-current)” in the condensed interim consolidated statement offinancial position. Valuation gains and losses arising from changes in fair value and dividend income areincluded in “Gain (loss) on investments at Investment Business of Holding Companies” in the condensed
interim consolidated statement of income. In addition, payments for acquisition of convertible bonds made by
SB Northstar are presented as “Payments for acquisition of investments by asset management subsidiaries(cash flows from investing activities)” in the condensed interim consolidated statement of cash flows.
b. Securities pledged as collateral in the asset management subsidiary
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 presented as “Securities pledged ascollateral in asset management subsidiaries” in the condensed interim consolidated statement of financial
position. In addition, changes in the securities pledged as collateral in SB Northstar are presented as net of“(Increase) decrease in securities pledged as collateral in asset management subsidiaries (cash flows fromoperating activities)” in the condensed interim consolidated statement of cash flows.

74SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 30, 2021

c. 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 changes in restricted cash in SB Northstar are included under 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, changes in margin deposits in SB Northstar are included under 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 “Financial
Instruments.” Therefore, they are accounted for as financial instruments at FVTPL and included in “Other
financial liabilities (current)” in the condensed interim consolidated statement of financial position. At initialrecognition and subsequent to initial recognition, they are measured at fair value and valuation gains andlosses arising from changes in fair value are included in “Gain (loss) on investments at Investment Businessof Holding Companies” in the condensed interim consolidated statement of income. In addition, changes inborrowed securities in SB Northstar are included under cash flows from operating activities in the condensed
interim consolidated statement of cash flows.

75SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 30, 2021

3. 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, 2021, the Company had four reportable segments, the Investment
Business of Holding Companies segment, the SoftBank Vision Funds segment, the SoftBank segment, and
the Arm segment. The Latin America Funds segment previously included in “Other” has been added to thereportable segments from the three-month period ended June 30, 2021 since the materiality has increased.
The SVF1 and Other SBIA-Managed Funds segment was renamed to the SoftBank Vision Funds segmentfrom the three-month period ended September 30, 2021.
The Investment Business of Holding Companies segment conducts, mainly through SoftBank Group Corp. asa strategic investment holding company, investment activities in a wide range of sectors in Japan and overseas
directly or through subsidiaries of the Company. The Investment Business of Holding Companies segment
consists of SoftBank Group Corp., SoftBank Group Capital Limited, SoftBank Group Japan Corporation, SB
Northstar that is an asset management subsidiary, and certain subsidiaries of the Company that conduct
investment or funding. SB Northstar is engaged in various transactions such as acquisition and sale of listed
stocks, derivative transactions related to listed stocks, credit transactions, and others for diversification of theassets 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.
The SoftBank Vision Funds segment conducts, mainly through SVF1 and SVF2, investment activities in awide range of technology sectors. Primarily, gain and loss on investments at SVF1, SVF2, and others consistof gain 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 services, sale of mobile devices,internet services such as broadband services in Japan, and through Yahoo Japan Corporation and Line
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 related services.
The Latin America Funds segment conducts, mainly through SoftBank Latin America Funds, investment
activities all over the Latin America region. Primarily, gain and loss on investments at Latin America Funds
consist of gain and loss arising from investments held by SoftBank Latin America Funds.

76SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 30, 2021

Information on business segments which are not included in the reportable segments is classified in “Other.”“Other” includes mainly PayPay Corporation, Fortress, and the Fukuoka SoftBank HAWKS-related
operations.
“Reconciliations” includes an elimination of intersegment transactions, as well as an elimination of gain andloss on the investment in shares in Arm, a subsidiary of the Company, and WeWork, an equity method
associate, and others, which are included in segment income of the SoftBank Vision Funds segment and anelimination of income on equity method investments recognized relating to PayPay Corporation, which isincluded in segment income of the SoftBank segment. Such income on equity method investments iseliminated because the Company consolidates PayPay Corporation as its subsidiary and related amounts arealso included in “Other.”Segment information for the six-month period ended September 30, 2020 and the three-month period ended
September 30, 2020 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.” As in the condensed interim
consolidated statement of income, “Gain (loss) on investments” included in segment income includes realized
gain and loss from investments in financial assets at FVTPL for which investment performance is measured atfair value, 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 investments
accounted for using the equity method. The Investment Business of Holding Companies segment calculates its
segment income by eliminating gain and loss on investments relating to investments in subsidiaries, including
dividend income from subsidiaries and impairment loss on investments in subsidiaries.
Intersegment transaction prices are determined under the same general business conditions as applied forexternal customers.

77SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 30, 2021

For the six-month period ended September 30, 2020
(Millions of yen)

Reportable segments
Investment Businessof Holding Companies

SoftBank Vision
Funds

SoftBank

Latin America
Funds

Arm

Net sales
Customers
Intersegment--

2,423,044
4,723

99,678
326

-

Total

-

-

2,427,767

100,004-

Segment income
Depreciation andamortization

25,348913,989533,284(10,821)61,861

(975)

(266)

(348,009)(35,722)(32)

Gain (loss) on investments

579,614

1,411,567(6,043)-63,468Finance cost
Income (loss) on equity
method investments
Derivative gain (loss)(excluding gain (loss) on
investments)(108,175)(6,228)(32,920)

(419)

(108)

194,607-(17,129)

1,677-(762,417)

-

(42)

1,152

-

Reconciliations

Consolidated

Total

Other

Net sales
Customers
Intersegment

2,522,722
5,049

107,809
4,391(9,440)2,630,531-

Total

2,527,771

112,200(9,440)2,630,531

Segment income
Depreciation andamortization

1,523,661(22,860)(59,329)

1,441,472(385,004)(22,344)-(407,348)

Gain (loss) on investments

2,048,606

59,634(74,929)

2,033,311

Finance cost
Income (loss) on equity
method investments
Derivative gain (loss)(excluding gain (loss) on
investments)(147,850)(7,897)

1,939(153,808)

179,155

6,908

14,767200,830(761,307)

(250)

-

(761,557)

78

SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 30, 2021

For the six-month period ended September 30, 2021
(Millions of yen)

Reportable segments
Investment Businessof Holding Companies

SoftBank Vision
Funds*SoftBank

Latin America
Funds

Arm

Net sales
Customers
Intersegment--

2,718,057
6,300

161,093
262

-

Total

-

-

2,724,357

161,355-

1,016,053(589,536)

532,125

33,994

187,942(1,935)(277)(367,752)(36,595)(76)

Gain (loss) on investments

279,688(743,164)

20,284

12

193,698

Finance cost
Income (loss) on equity
method investments
Derivative gain (loss)(excluding gain (loss) on
investments)(138,415)(9,679)(31,104)

(489)

(478)

266,989-(28,254)(878)-

623,897

1,424

2

(977)

92

Segment income
Depreciation andamortization

Total

Other

Reconciliations

Consolidated

Net sales
Customers
Intersegment

2,879,150
6,562

104,3547,259(13,821)2,983,504-

Total

2,885,712

111,613(13,821)2,983,504

Segment income
Depreciation andamortization

1,180,578(16,662)(116,945)

1,046,971(406,635)(16,118)-(422,753)

Gain (loss) on investments(249,482)(9,972)(135,781)(395,235)

Finance cost
Income (loss) on equity
method investments
Derivative gain (loss)(excluding gain (loss) on
investments)(180,165)(7,568)2,134(185,599)

237,857

19,486

7,988

265,331624,438(3,479)-620,959

Note:* The details of the difference between “Gain (loss) on investments” in the SoftBank Vision Funds segment and “Gain (loss) on
investments at SVF1, SVF2, and others” in the condensed interim consolidated statement of income are described in “Note 4.
SoftBank Vision Funds business.”

79SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 30, 2021

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

Reportable segments
Investment Businessof Holding Companies

SoftBank Vision
Funds

SoftBank

Latin America
Funds

Arm

Net sales
Customers
Intersegment--

1,253,389
2,056

53,719
110

-

Total

-

-

1,255,445

53,829-(433,549)

784,359

274,035(4,274)39,534

(520)

(116)

(174,875)(17,946)(16)

Gain (loss) on investments(70,879)

1,114,990(10,159)-

40,187

Finance cost
Income (loss) on equity(55,025)(1,628)(16,664)

(206)

(104)

190,504-(8,123)964-(586,227)

-

(43)

815

-

Reconciliations

Consolidated

Segment income
Depreciation andamortization

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

Total

Other

Net sales
Customers
Intersegment

1,307,108
2,166

43,4502,323(4,489)1,350,558-

Total

1,309,274

45,773(4,489)1,350,558

660,105

14,949(67,702)607,352(193,473)(9,031)-(202,504)

Gain (loss) on investments

1,074,139

51,181(74,929)

1,050,391

Finance cost
Income (loss) on equity(73,627)(4,031)

843(76,815)

183,345

4,099

6,813

194,257(585,455)

(277)

-

(585,732)

Segment income
Depreciation andamortization

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

80SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 30, 2021

For the three-month period ended September 30, 2021
(Millions of yen)

Reportable segments
Investment Businessof Holding Companies

SoftBank Vision
Funds

SoftBank

Latin America
Funds

Arm

Net sales
Customers
Intersegment--

1,364,049
3,738

87,076
1

-

Total

-

-

1,367,787

87,077-

390,348(825,086)

261,171

25,213(28,417)

(940)

(140)

(183,412)(18,122)(37)

Gain (loss) on investments(461,692)(1,134,726)

5,022

6

(25,670)

Finance cost
Income (loss) on equity(78,820)(5,578)(15,551)

(231)

(275)

212,319-(15,915)(1,087)-732,002

720

101

(526)

198

Segment income
Depreciation andamortization

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

Total

Other

Reconciliations

Consolidated

Net sales
Customers
Intersegment

1,451,125
3,739

53,245
4,151(7,890)1,504,370-

Total

1,454,864

57,396(7,890)1,504,370

Segment income
Depreciation andamortization(176,771)(49,510)(19,226)(245,507)(202,651)(7,188)-(209,839)

Gain (loss) on investments(1,617,060)(8,998)(32,245)(1,658,303)

Finance cost
Income (loss) on equity
method investments
Derivative gain (loss)(100,455)(3,463)

1,118(102,800)

195,317

17,446

2,188

214,951(excluding gain (loss) on
investments)

732,495--

732,495

81

SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 30, 2021

4. SoftBank Vision Funds business(1) Introduction of Co-investment Program with Restricted Right to Receive Distributions and Preferred Equity to
SVF2
a. Co-investment Program with Restricted Rights to Receive Distributions
The Board of Directors of SoftBank Group Corp. resolved to introduce a co-investment program withrestricted rights to receive distributions to SVF2. In July 2021, based on the resolution, the Company
established SVF2 LLC, a wholly-owned subsidiary of the Company, beneath SVF2 for the program. SVF2
LLC has entered into a definitive agreement in August with the Company and MgmtCo, a participant in the
program, which resulted in MgmtCo becoming an investor in SVF2 LLC.
MgmtCo is a company controlled by Masayoshi Son, Representative Director, Corporate Officer, Chairman &CEO of SoftBank Group Corp., and a related party of the Company. The details of the related party
transactions between the Company and MgmtCo are described in “Note 18. Related party transactions.”(a) Purpose of the program
The program has been introduced for the purpose of enabling Masayoshi Son to make a co-investment in
SVF2, sharing risk of losses as well as benefit of profits in the success of SVF2, and leading to enhanced
focus on the management of SVF2 investments, which in turn is intended to contribute to increases in the
Company’s earnings. In making a co-investment in SVF2 under the terms of the program, MgmtCo both
receives the benefit of profits from SVF2 and assumes the risk of losses from SVF2, and MgmtCo’s right toreceive distributions from its investment is subject to certain restrictions.
(b) Overview of the program
Contributions by SVF Investors are classified as “Equity” and “Preferred Equity” depending on the terms
and conditions of distribution. Overview of the program is as follows:i. Investment in SVF2 LLC
Based on the definitive agreement entered into in August 2021, SVF2 LLC has issued Equity to theCompany and MgmtCo. The Company (through SoftBank Vision Fund II-2 L.P. and its subsidiaries) holds
82.75% of the total Equity interests in SVF2 LLC and MgmtCo holds 17.25% of the total Equity interests in
SVF2 LLC. The Equity interests held by the Company and MgmtCo are entitled to performance-based
distributions that are allocated to each investor based on the proportion of their respective Equity
contributions.

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SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 30, 2021

ii. Transfer of portfolio companies
After the definitive agreement signed in August 2021, for the purpose of the program, unlisted portfolio
companies that were held or planned to be held by SVF2 as of June 23, 2021 have in principle beentransferred to SVF2 LLC. As a result, some portfolio companies have been transferred by September 30,
2021 and the remaining portfolio companies have been transferred on and after October 1, 2021,
sequentially.
iii. Investment from MgmtCo
The total amount of capital contribution by MgmtCo is expected to be $2.6 billion and the total amountafter adding the related adjustments to the capital contribution amount (the “Equity Acquisition Amount”)
is expected to be $2.9 billion. Upon the completion of the transfers of portfolio companies from SVF2 to
SVF2 LLC, the Equity for each portfolio company is issued from SVF2 LLC to the Company and
MgmtCo. As a result, capital contribution made by MgmtCo was $1.4 billion and the Equity Acquisition
Amount was $1.6 billion, respectively as of September 30, 2021.
iv. Receivables and premiums accrued on Equity Acquisition Amount
MgmtCo is entitled to make full or partial payment of its Equity Acquisition Amount at any point in time,at its discretion, from the date it became an investor in SVF2 LLC to the end of the company life of SVF2
LLC. MgmtCo is required to pay a premium of 3% per annum on the unpaid Equity Acquisition Amountuntil the unpaid amount is paid in full. MgmtCo is also entitled to make full or partial payment of thepremium at any point in time, at its discretion on the same terms and conditions as Equity Acquisition
Amount. As of September 30, 2021, no cash payment has been made from MgmtCo for the Equity
Acquisition Amount and the premium. The details of the receivables related to the Equity Acquisition
Amount and the premium as of September 30, 2021 are described in “(b) Third-party interests in SVF2 andreceivables in (4) Third-party interests in SVF1 and SVF2: b. Changes in interests attributable to ThirdParty Investors.” Any distributable amount from SVF2 LLC to MgmtCo is offset against the receivables at
the time of the distribution notice and no distribution payments to MgmtCo are made until SVF2 LLC’s
receivables are paid in full.
v. Collateral and other credit protection for receivables
In order to secure the receivables of SVF2 LLC, all of the Equity interests in SVF2 LLC held by MgmtCo
were pledged as collateral. In the event that MgmtCo pays into the receivables or offsets such receivables
with distributions due to it from SVF2 LLC, the collateral is released to the extent that the cumulative
amounts of payments and offsets exceeds the balance of the receivables after deduction of such cumulative
amounts. Masayoshi Son also provides a personal guarantee to the receivables up to the balance of thereceivables. In addition, as of September 30, 2021, 8,897,100 shares of SoftBank Group Corp. are deposited
in SVF2 LLC by Masayoshi Son. The deposited shares of SoftBank Group Corp. will be released only
where the entire amount of receivables is settled. SVF2 LLC may acquire the deposited SoftBank Group
Corp. shares without consideration where there are any unpaid receivables in SVF2 LLC after theenforcement of the collateral and personal guarantees by SVF2 LLC.

83

SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 30, 2021

vi. Restrictions on rights to receive distributions to MgmtCoDistributions from SVF2 LLC to MgmtCo are fully restricted and are not paid until the sum of proceeds
received by SVF2 LLC from realized investments plus the aggregate fair value of all of SVF2 LLC’s
unrealized investments (net of borrowings) exceeds 130% of the aggregate acquisition cost of all of SVF2
LLC’s investments. After the ratio exceeds 130%, restrictions on distributions to MgmtCo are released
proportionately in increments of 10%, and when the ratio reaches 200%, all restrictions are released andMgmtCo is entitled to receive the full amount of the distributions. In the event that, upon the liquidation of
SVF2 LLC, the amount of the distribution received by MgmtCo exceeds the amount that would have been
distributed to MgmtCo if the ratio in effect at the time of liquidation was applied throughout the life of
SVF2 LLC, then any such excess amounts will be subject to clawback from MgmtCo.
vii. Nature of the Equity contribution by the Company and MgmtCo
The Equity interests held by the Company and MgmtCo are subordinated to the Preferred Equity of SVF2
LLC described in “b. Preferred Equity Contribution to SVF2 by the Company.” If there is a shortfall in theamount of return of Preferred Equity contributions and the amount of fixed distributions to be received by
the Preferred Equity holders at the time of the final profit distribution by SVF2 LLC, then MgmtCo is
obligated to pay the shortfall proportional to Equity interests’ ratio up to the total amount of return of
Equity contributions and the distributions received by MgmtCo.
viii. Management fee and performance fees to be charged to MgmtCo
The terms of the management fee and performance fees to be charged to MgmtCo are the same as those to
be charged to the Company as an Equity investor in SVF2 LLC. The details of the management fee andperformance fees to be charged to MgmtCo is described in “b. Management fees and performance fees in
SVF2” under “(5) Management fees and performance fees.”b. Preferred Equity Contribution to SVF2 by the Company
SoftBank Group Corp. has resolved at a meeting of its Board of Directors that SVF2 LLC issues to theCompany (through SoftBank Vision Fund II-2 L.P. and its subsidiaries) a new class of Preferred Equity
interests that is subject to fixed distribution separate from the Equity under the program. The purpose of
issuing the Preferred Equity is to enhance the efficiency of recovery of investment funds. The Preferred Equity
interests in the amount of $5.2 billion have been issued to the Company for the three-month period ended
September 30, 2021. The Preferred Equity interests have a priority right over the Equity interests held by theCompany and MgmtCo under the program in terms of its distributions and return of the contributions, and theCompany receives a fixed distribution amount calculated at 8% per annum on the amount of Preferred Equity
contributions by the Company. The Company’s contributions to SVF2 LLC for new investments on and afterJune 24, 2021 are Preferred Equity contributions.
c. Committed capital
After the introduction of the program and Preferred Equity, $2.6 billion was reduced from the Company’scommitted capital and MgmtCo’s committed capital was increased by the same amount. As a result, the totalcommitted capital for SVF2 as a whole amount after the introduction of the program was $40 billion.

84

SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 30, 2021

d. Structure
Please refer to the following scheme diagram for “a. Co-investment Program with Restricted Rights to
Receive Distributions” and “b. Preferred Equity Contribution to SVF2 by the Company.”(a) Structure prior to the introduction of the program and Preferred Equity(b) Structure after the introduction of the program and Preferred Equity

Notes:
1. For the three-month period ended September 30, 2021 after the introduction of the program and Preferred Equity, thecommitted capital for SVF2 was increased by $2.0 billion, which is attributable to the Company as an investor in SVF2. As aresult, the total commitment capital for SVF2 as a whole was $42.0 billion as of September 30, 2021.
2. Includes portfolio companies publicly filing for listing as of June 23, 2021, and portfolio companies that were approved by the
Board of Directors to be excluded from the program. The Company continues to hold 100% of Equity for investments in theportfolio companies that are outside of the program’s scope.

85

SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 30, 2021

(2) Change of a manager of SVF2
SVF2 was previously managed by SBIA and has been managed by SBGA, which is a wholly-owned subsidiaryof the Company, since September 2021. SBGA outsources most of its operations to SBIA and SBIA continues tosupport the management of SVF2 as an outsourced service provider.
(3) Income and loss arising from the SoftBank Vision Funds businessa. Overview
Segment income arising from the SoftBank Vision Funds business (income before income tax) represents thenet profits of the SoftBank Vision Funds business, after deducting the net profits attributable to Third-Party
Investors. The net profits attributable to Third-Party Investors are the amount after deducting management
fees and performance fees that SBIA and SBGA receive from SVF1 and SVF2, respectively.
The amount of the net profits attributable to Third-Party Investors that is deducted from the segment income ispresented as “Change in third-party interests in SVF1 and SVF2.”
b. Segment income arising from the SoftBank Vision Funds business
The components of segment income arising from the SoftBank Vision Funds business are as follows:(Millions of yen)Six-month period ended
September 30, 2020

Six-month period ended
September 30, 2021

141,385

862,522

1,342,001(529,840)(81,409)(1,023,896)

4,623
1,091
3,876

22,635(42,370)(32,215)

1,411,567(743,164)(34,430)(6,228)(30,051)(9,679)-1,424(457,537)
617

195,179(3,245)913,989(589,536)

Gain (loss) on investments at SVF1, SVF2, and others
1

Realized gain on investments

Unrealized gain (loss) on valuation of investments
2

Change in valuation for the fiscal year

Reclassified to realized gain recorded in the past3
fiscal year
Dividend income from investments
Derivative gain (loss) on investments
4
Effect of foreign exchange translation
Subtotal
Selling, general and administrative expenses
Finance cost (interest expenses)
Derivative gain (excluding gain (loss) on
investments)
Change in third-party interests in SVF1 and SVF2
Other gain (loss)
Segment income arising from the SoftBank Vision
Funds business (income before income tax)

86SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 30, 2021

Notes:
1. In addition to the realized gain and loss on sales by cash consideration, the realized gain and loss by share exchange areincluded.
2. 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 the definitive
agreement, SVF1 recorded ¥94,482 million of unrealized gain on valuation for the six-month period ended September 30,
2021 upon the fair value estimation of Arm held by SVF1.
The unrealized gain on valuation arising from Arm shares held by SVF1 is included in “Gain (loss) on investments at SVF1,
SVF2, and others” (in Change in valuation for the fiscal year under Unrealized gain (loss) on valuation of investments) in theabove-mentioned segment income. However, the unrealized gain on valuation is eliminated in consolidation as Arm is a
subsidiary of the Company.
For the three-month period ended June 30, 2021, Arm transferred 75.01% all of the shares of Treasure Data, Inc., a whollyowned subsidiary of Arm, to the Company’s foreign subsidiary and 24.99% of the shares to SVF1 as dividends in kind. The
75.01% of Treasure Data, Inc. shares were transferred through sales from the Company’s foreign subsidiary to SVF2. As aresult, the fair values of Arm shares and Treasure Data, Inc. shares held by SVF1 and SVF2 were separately measured as of
September 30, 2021. The fair value of Treasure Data, Inc. shares, which was included in the fair value of Arm shares as ofMarch 31, 2021, is not included in the fair value of Arm shares as of September 30, 2021.
¥19,019 million of shares of Treasure Data, Inc. received as dividends in kind which SVF1 received from Arm is included in“Gain (loss) on investments at SVF1, SVF2, and others” (in Dividend income from investments) in the above-mentioned
segment income, however, the dividends are eliminated in consolidation.
For the three-month period ended September 30, 2021, a wholly-owned subsidiary of the Company other than SVF1 wastransferred through sales from the Company to SVF2. As a result of the transaction, WeWork shares held by SVF2 include
common shares and the common shares are continuously accounted for using the equity method on a consolidation basis after
the transfer. ¥18,557 million of the unrealized gain on valuation after the transfer date arising from WeWork common shares
held by SVF2 is included in “Gain (loss) on investments at SVF1, SVF2, and others” (in Change in valuation for the fiscal
year under Unrealized gain (loss) on valuation of investments) in the above-mentioned segment income. However, theunrealized gain on valuation is eliminated in consolidation as WeWork is an equity method associate of the Company.
The unrealized gain and loss on valuation and the dividends, that are eliminated in consolidation, are not included in “Gain(loss) on investments at SVF1, SVF2, and others” in the condensed interim consolidated statement of income.
3. It represents the unrealized gain and loss on valuation of investments recorded as “Gain (loss) on investments at SVF1, SVF2,
and others” in the past fiscal years, which are reclassified to realized gain and loss on investments due to the realization forthe six-month period ended September 30, 2021.
4. Unrealized gain and loss on valuation of investments are translated using the average exchange rate for the quarter in which
the gain and loss were recognized, while realized gain and loss on investments are translated using the average exchange rate
for the quarter in which the shares were disposed. Foreign currency translation effects are arising from the different foreign
currency exchange rates used for unrealized gain and loss on valuation and realized gain and loss.

(4) Third-party interests in SVF1 and SVF2
a. Terms and conditions of contribution from/ distribution to SVF Investors
Contributions by SVF Investors are classified as “Equity” and “Preferred Equity” depending on the terms andconditions of distribution. Preferred Equity is prioritized over Equity with regard to distribution and return ofcontribution.

87

SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 30, 2021

Performance-based distributions attributed to SVF Investors, consisting of the Company and Third-Party
Investors, are calculated using the net proceeds from the investment performance of SVF1 and SVF2. Those
performance-based distributions and performance fees attributed to SBIA and SBGA are allocated using themethod specified in the limited partnership agreement. The amount of performance-based distribution
attributed to SVF Investors are allocated to each of the SVF Investors based on the proportion of theirrespective Equity contribution. The amount of performance-based distributions is paid to each of the SVF
Investors after SVF1 and SVF2 receive cash through dividend, or disposition or monetization of investments.
In SVF1, fixed distributions are defined as distributions of Preferred Equity holders which are calculated
equal to a 7% rate per annum based on their contributions. The fixed distributions are made every lastbusiness day of the months of June and December. The details of the terms and conditions of the Equity
contributed by Third-Party Investor in SVF2 are described in “a. Co-investment Program with Restricted
Rights to Receive Distributions” under “(1) Introduction of Co-investment Program with Restricted Rights to
Receive Distributions and Preferred Equity to SVF2.” There are no Third-Party Investors who contributed toPreferred Equity in SVF2.
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.”b. Changes in interests attributable to Third-Party Investors(a) Third-party interests in SVF1
Changes in interests attributable to Third-Party Investors in SVF1 (included in “Third-party interests in SVF1
and SVF2” in the condensed interim consolidated statement of financial position) are as follows:

Third-party interests in SVF1
(Total of current liabilities andnon-current liabilities)(Millions of yen)(For reference purposes only)
Links with the condensed interim consolidated financial
statements
Consolidated statement
Consolidated statement ofof income
cash flows(Negative figures represent (Negative figures represent
expenses)
payments)(Breakdown)
As of April 1, 2021
Contributions from third-party
investors
Changes in third-party interests
Attributable to investors entitled to6,601,791
82,808-82,808(196,283)

196,283-(857,907)-(857,907)

58,785--78,179fixed distribution
Attributable to investors entitled toperformance-based distribution
Distribution/repayment to third-party
investors
Exchange differences on translating
third-party interests*
As of September 30, 2021

(274,462)

5,689,19488

SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 30, 2021

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

(b) Third-party interests in SVF2 and receivables
Changes in interests attributable to Third-Party Investor in SVF2 (included in “Third-party interests in SVF1
and SVF2” in the condensed interim consolidated statement of financial position) are as follows: Third-party
Investor in SVF2 is the investor entitled to performance-based distribution.
(Millions of yen)(For reference purposes only)
Links with the condensed interim
consolidated financial statements
Third-party
Consolidated
Consolidated
interests in SVF2
statement of cash
statement
flows(Total of currentof incomeliabilities and non- (Negative figures (Negative figurescurrent liabilities) represent expenses) represent payments)
As of April 1, 2021
Acquisition of interest by third-party investor
Changes in third-party interests
Distribution/repayment to the third-party
investor (Offsetting against the receivables)
Exchange differences on translating thirdparty interests*
As of September 30, 2021

180,338
1,104(1,104)-(19,104)

-

-

2,131

-

-

164,469

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

The Company has receivables from Third-party Investor in SVF2. The changes in the receivables from ThirdParty Investor in SVF2 (included in “Other financial assets (non-current)” in the condensed interim
consolidated statements of financial position) are as follows: The details of the receivables from Third-Party
Investor in SVF2 are described in “a. Co-investment Program with Restricted Rights to Receive
Distributions.” under “(1) Introduction of the Co-investment Program with Restricted Rights to Receive
Distributions and Preferred Equity to SVF2.”

As of April 1, 2021
Increase of receivables from Equity Acquisition Amount and accrued
premiums charged to third-party investor
Reduction of receivables by offsetting distribution/repayment to thirdparty investor
Exchange differences on receivables
As of September 30, 2021

89

(Millions of yen)
Receivables from third-party
investor in SVF2
181,442(19,104)
2,131
164,469

SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 30, 2021

c. Uncalled committed capital from Third-Party Investors
Uncalled committed capital from SVF1’s Third-Party Investors as of September 30, 2021 was $8.7 billion.
(5) Management fees and performance fees
Terms and conditions of management fees and performance fees, included in segment income from the
SoftBank Vision Funds business, are as follows.
a. Management fees and performance fees in SVF1
Management fees to SBIA from SVF1 are, in accordance with the limited partnership agreement, calculated
by multiplying 1% per annum by Equity contributions used to fund investments and paid to SBIA by SVF1
quarterly. A clawback provision is attached to the management fees received, which is triggered under certain
conditions based on future investment performance.
Same as the performance-based distributions, the amount of the performance fees to SBIA from SVF1 iscalculated using the allocation method as specified in the limited partnership agreement. SBIA is entitled toreceive the performance fees when SVF1 receives cash through disposition, dividend and monetization of aninvestment.
From the inception of SVF1 to September 30, 2021, the cumulative amount of performance fees paid to SBIA
was $439 million. For the six-month period ended September 30, 2021, 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.
b. Management fees and performance fees in SVF2
Management fees to SBGA from SVF2 are, in accordance with the constitutional agreements, calculated bymultiplying 0.7% per annum by the acquisition cost of investments and paid to SBGA by SVF2 quarterly.
Same as the performance-based distributions, the amount of the performance fees to SBGA from SVF2 iscalculated using the allocation method as specified in the constitutional agreement. SBGA is entitled toreceive the performance fees when SVF2 receives cash through disposition, dividend and monetization of aninvestment.
From the inception of SVF2 to September 30, 2021, no performance fees were paid to SBIA or SBGA.

90

SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 30, 2021

5. Business combinations
For the six-month period ended September 30, 2021
Acquisition of LINE Corporation and business integration of LINE Group and Z Holdings Corporation(Amendment of provisional amounts)
1

SoftBank Corp., a subsidiary of the Company, obtained control of LINE Corporation , effective February 28,
2021. The consideration for acquisition is allocated to the acquired assets and the assumed liabilities based on
the fair value on the acquisition date. For the six-month period ended September 30, 2021, the allocation of
the consideration for acquisition has been completed.
The main effects of the adjustments comprise of decrease in property, plant and equipment of ¥2,762 million,
decrease in intangible assets including identifiable intangible assets of ¥14,092 million, decrease in deferred
tax liabilities of ¥5,352 million, decrease in non-controlling interests of ¥5,861 million, and increase ingoodwill of ¥5,861 million.
(1) Consideration transferred and the component(Millions of yen)
Acquisition date(February 28, 2021)
Fair value of common shares in LINE Corporation already held at thetime of acquisition of control
Fair value of common shares in Shiodome Z Holdings G.K. transferred

172,922
689,150at the time of acquisition of control
A

Total consideration transferred

91

862,072

SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 30, 2021

(2) Fair value of assets and liabilities, non-controlling interests and goodwill on the acquisition date(Millions of yen)
Acquisition date(February 28, 2021)
Cash and cash equivalents

312,791
67,553
46,687
21,90562,940395,947
167,873
104,809

Trade and other receivables
Other (current)
Property, plant and equipment
Right-of-use assets
2
Intangible assets
Investments accounted for using the equity method
Other (non-current)
Total assets

1,180,505

Interest-bearing debt (current and non-current)
Lease liabilities (current and non-current)
Trade and other payables
Other (current)
Deferred tax liabilities
Other (non-current)

181,308
62,940233,671
49,169150,504
20,745

Total liabilities

698,337

Net assets
3

Non-controlling interests
Goodwill

4B

482,168

C

250,760

A-(B-C)630,664

Notes:
1. Refers to LINE Corporation, surviving company in the absorption-type merger conducted by Shiodome Z Holdings G.K.
LINE Corporation, the acquiree, transferred all business to LINE Split Preparation Corporation (currently, LINE
Corporation) and changed its name to A Holdings Corporation, effective February 28, 2021.
2. The amount of intangible assets includes ¥394,413 million of identifiable assets and the table below shows the breakdownof the identifiable assets. The estimated useful lives of customer relationships are from 12 to 18 years and the one oftechnology assets are 8 years. The trademarks are classified as intangible assets with indefinite useful lives. The amount ofintangible assets recognized from business combinations is measured based on assumptions such as estimated future cash
flows, discount rate, attrition rate of existing customers, future sales forecast generated by trademarks, and royalty rate.
(Millions of yen)
Acquisition date(February 28, 2021)
Intangible assets with indefinite useful lives
Trademarks
Intangible assets with definite useful lives
Customer relationships
Technology assets

160,116
232,019
2,278

Total

394,41392

SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 30, 2021

3. Non-controlling interests are measured at the fair values of the acquiree’s identifiable net assets as of the acquisition date,multiplied by the ratio of the non-controlling interests.
4. Goodwill reflects the ability to generate excess earnings resulting from expected future business development andsynergies between the Group and the acquiree.

93

SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 30, 2021

6. Other financial assets
The components of other financial assets are as follows:
As ofMarch 31, 2021

(Millions of yen)
As of
September 30, 2021

Current
Marketable securities
1
Restricted cash
Time deposits (maturities of more than threemonths)Other
Allowance for doubtful accounts
Total
Non-current
Installment receivables
Loan receivables
Deposits for banking business
Trust accounts in SPACs
2
Receivables from MgmtCo
Investments from asset management subsidiaries
Lease and guarantee deposits
Other
Allowance for doubtful accounts
Total

80,797
480,100

113,426
57,54236,31534,31885,630(10,935)

101,215(12,411)

671,907

294,090

481,943
390,073384,394
327,569
97,02373,355247,504(82,599)473,955
461,741
391,166
298,142
241,838
140,537
53,917271,271(75,277)

1,919,262

2,257,290

Notes:
1. On April 13, 2021, the Company paid ¥313,411 million ($2.9 billion) from ¥361,355 million ($3.3 billion) of restricted cash
which was required to be maintained in a segregated custody account as of March 31, 2021 for the early termination of the
prepaid forward contract using Alibaba shares by cash. Accordingly, the Company completed the settlement of the prepaid
forward contract using Alibaba shares. Also, ¥47,944 million of the rest of the restricted cash was released from usage limit
and transferred to “Cash and cash equivalents” for the six-month period ended September 30, 2021. The details are describedin “(2) Transactions for sale of Alibaba shares by prepaid forward contract” under “Note 9. Interest-bearing debt.”
2. Receivables from MgmtCo is outstanding balance of the receivables in relation to the Equity Acquisition Amount and accrued
premiums from MgmtCo as a Third-Party Investor of SVF2 and SoftBank Latin America Funds. The receivables of SVF2 and
SoftBank Latin America Funds are ¥164,469 million and ¥77,369 million, respectively. The details of the receivables aredescribed in “(1) Introduction of Co-investment Program with Restricted Rights to Receive Distributions and Preferred Equity
to SVF2.” under “Note 4. SoftBank Vision Funds business” and “Note 18. Related party transactions.”

94

SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 30, 2021

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 would 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 would subscribe for additional shares of Boston Dynamics. Upon this agreement, it was
highly probable that Boston Dynamics would 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 for the fiscal year ended March 31, 2021. 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 othercomprehensive income in Boston Dynamics were ¥38,647 million, ¥11,271 million, and ¥267 million,
respectively as of March 31, 2021.
In addition, the transaction was completed following regulatory approval and satisfaction of certain conditions on
June 21, 2021. Boston Dynamics is no longer a subsidiary of the Company from the same date and the sharescontinuously held as a minority shareholder are measured at fair value and accounted for as financial instruments
at FVTPL. Accordingly, for the six-month period ended September 30, 2021, the difference between theconsideration from the sale transaction (excluding the cost to sell) and the fair value of shares continuously held,
and the carrying amount of Boston Dynamics (assets, liabilities, accumulated other comprehensive income, andnon-controlling interests) was recorded as a gain relating to loss of control over subsidiaries for ¥72,936 million
under “Other gain” in the condensed interim consolidated statement of income.
8. Income taxes
For the six-month period ended September 30, 2021
Due to the enactment of the UK Finance Act of 2021 in June 2021, the corporate tax rate was increased from 19%
to 25% on or after April 1, 2023. As a result, the Company reversed a deferred tax liability of ¥38,029 million(translated at the exchange rate as of March 31, 2021). In addition, credits of income taxes (profit) and othercomprehensive income (profit) were recorded for ¥31,953 million and ¥5,890 million, respectively. This is
primarily due to the fact that certain subsidiaries based in the UK, which were applicable for the calculation of
aggregation of income earned by controlled foreign companies in SoftBank Group Corp., will be expected to be
exempt from the calculation on or after April 1, 2023.

95

SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 30, 2021

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

As ofMarch 31, 2021
Current
1
Short-term borrowings
Commercial paper2
Current portion of long-term borrowings
Current portion of corporate bonds
Current portion of financial liabilities relating to3sale of shares by prepaid forward contracts
Current portion of installment payables
Total
Non-current
4Long-term borrowings
5
Corporate bonds
Financial liabilities relating to sale of shares by
3,6
prepaid forward contracts
Installment payables
Total

As of
September 30, 2021

2,637,401
409,201
2,085,348
804,356

2,147,606
592,101
1,630,903
947,218

1,798,701

1,804,973

232

191

7,735,239

7,122,992

4,745,058
4,745,184

4,687,674
6,058,923

1,287,038

2,277,192

456

378

10,777,736

13,024,167

Notes:
1. For the six-month period ended September 30, 2021, a wholly-owned subsidiary of the Company made a borrowing of $1.25
billion by using 45,366,669 shares of T-Mobile held as collateral. Deutsche Telekom AG (“Deutsche Telekom”) exercised call
options over 45,366,669 shares out of 101,491,623 shares of T-Mobile held through the wholly-owned subsidiary of theCompany and the wholly-owned subsidiary of the Company acquired newly issued 225,000,000 shares of Deutsche Telekom
as its consideration. As a result of the transaction, T-Mobile shares pledged as collateral were replaced by 225,000,000 sharesof Deutsche Telekom. As of September 30, 2021, the wholly-owned subsidiary pledged ¥507,727 million of Deutsche Telekom
shares held as collateral for ¥139,900 million of short-term borrowings. Deutsche Telekom shares pledged as collateral are
included in “Investment securities” in the condensed interim consolidated statement of financial position as of September 30,
2021. The details of the acquisition of Deutsche Telekom shares are described in “Note 19. Additional information.”
In addition, related to the transaction, Alibaba shares held by the Company are pledged as collateral. Alibaba shares pledged ascollateral are recorded for ¥10,387 million as “Investments accounted for using the equity method” in the condensed interim
consolidated statement of financial position as of September 30, 2021. Also, “T-Mobile” indicates T-Mobile US, Inc. after
merging with Sprint.
2. SB Northstar had made a borrowing by using Alibaba shares pledged as collateral. For the three-month period ended
September 30, 2021, SB Northstar repaid all of its borrowing of $6.0 billion before the maturity date and the collateral for
Alibaba shares was released. The carrying amount of current portion of long-term borrowings is ¥662,596 million and thecarrying amount of Alibaba shares pledged as collateral, on a consolidation basis, which are included in “Investments
accounted for using the equity method” is ¥302,048 million in the condensed interim consolidated financial position as ofMarch 31, 2021.

96SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 30, 2021

3. These are primarily financial liabilities relating to sale of shares by prepaid forward contracts using Alibaba shares. The detailsof the contracts are described in “(2) Transactions for sale of Alibaba shares by prepaid forward contract.”
4. For the six-month period ended September 30, 2021, long-term borrowings decreased by ¥481,260 million as an early
repayment was made for the total amount of borrowings ($4.38 billion) using T-Mobile shares held by a wholly-owned
subsidiary and Alibaba shares held by the Company pledged as collateral. Accordingly, on the same date, the collaterals for TMobile shares and Alibaba shares were released. T-Mobile shares pledged as collateral are recorded for ¥1,474,356 million as“Investment securities” in the condensed interim consolidated statement of financial position as of March 31, 2021. In
addition, Alibaba shares pledged as collateral are recorded for ¥42,381 million as “Investments accounted for using the equity
method” in the condensed interim consolidated statement of financial position as of March 31, 2021.
For the six-month period ended September 30, 2021, the wholly-owned subsidiary of the Company made a borrowing of $2.65
billion by using T-Mobile shares held as collateral. As of September 30, 2021, ¥614,709 million of T-Mobile shares is pledged
as collateral for ¥295,367 million of the long-term borrowing. T-Mobile shares pledged as collateral are included in“Investment securities” in the condensed interim consolidated statement of financial position as of September 30, 2021. In
addition, related to the transaction, Alibaba shares held by the Company are pledged as collateral. Alibaba shares pledged ascollateral are recorded for ¥22,001 million as “Investments accounted for using the equity method” in the condensed interim
consolidated statement of financial position as of September 30, 2021.
5. SoftBank Group Corp. issued the 5th unsecured subordinated bonds with interest deferrable clause and early redeemableoption (with a subordination provision) with June 21, 2021, as the due date for payment. Also, SoftBank Group Corp. issued
USD-denominated Senior Notes due 2025, 2026, 2028, and 2031, and Euro-denominated Senior Notes due 2024, 2027, 2029,
and 2032 with July 6, 2021, as the due date for payment, and issued the 4th unsecured subordinated corporate bond (with asubordination provision) with September 16, 2021, as the due date for payment, and the 3rd unsecured subordinated corporatebond (with a subordination provision) with September 30, 2021, as the due date for payment. As a result, corporate bonds
increased by ¥1,695,937 million.
6. For the six-month period ended September 30, 2021, a wholly-owned subsidiary entered into prepaid forward contracts byusing T-Mobile shares and procured $1.81 billion. As of September 30, 2021, the Company pledges ¥256,451 million of TMobile shares held as collateral for ¥229,437 million of financial liabilities relating to sale of shares by prepaid forward
contracts. The shares pledged as collateral are included in “Investment securities” in the condensed interim consolidated
statement of financial position as of September 30, 2021.
The number of T-Mobile shares settled by the prepaid forward contracts is determined by reference to the market price of theshares at the valuation dates prior to the settlement dates. A cap and a floor are set for the price of shares settled. The
aforementioned prepaid forward contracts are classified as hybrid financial instruments with embedded derivatives and theembedded derivatives are measured at fair value.

(2) Transactions for sale of Alibaba shares by prepaid forward contract
Wholly-owned subsidiaries of the Company entered into prepaid forward contracts with financial institutions
to procure funds using Alibaba shares, which are held by the subsidiaries.
In the prepaid forward contracts, the number of Alibaba shares settled by the prepaid forward contracts isfixed regardless of changes in market share price in the future in a forward contract or determined byreference to market price of the shares at the valuation dates prior to the settlement date. The latter type ofcontracts include Floor contract that a floor is set for the price of shares settled and collar contract that a cap
and a floor are set for the price of shares settled. A part of wholly-owned subsidiaries of the Company entering
into prepaid forward contracts with financial institutions to procure funds using Alibaba shares (“Entities forfund procurement by using Alibaba shares”), in addition to the prepaid forward contracts, enter into the callspread (combination of long position of call option and short position of call option with different strikeprices) contracts in preparation for Alibaba shares price rise.
97

SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 30, 2021

The aforementioned prepaid forward contracts are classified as hybrid financial instruments with embedded
derivatives. The Company accounts for the contracts by bifurcating the main contracts and embedded
derivatives, and the main contracts are recognized as financial liabilities relating to sale of shares by prepaid
forward contracts then measured at amortized cost and the embedded derivatives are measured at fair value.
Also, the call spread contracts are measured at fair value as well. In addition, for the derivative financial assets
and the derivative financial liabilities recognized from the prepaid forward contracts and the call spread
contracts, a tax effect is recognized.
The ending balance of the derivative financial assets and the derivative financial liabilities recognized fromthe prepaid forward contracts and the call spread contracts are described in “(1) Option contracts” and “(3)Forward contracts” under “Note 10. Financial Instruments.”
Entities for fund procurement by using Alibaba shares have the option to settle all of the prepaid forward
contracts by delivering cash, Alibaba shares, or a combination of cash and Alibaba shares. If Entities for fundprocurement by using Alibaba shares elect cash settlement, Entities for fund procurement by using Alibaba
shares will pay the cash equivalent to the fair value of the number of shares subject to the settlement, as
determined by reference to the market price of the shares.
Alibaba shares held by Entities for fund procurement by using Alibaba shares are pledged as collateral inaccordance with all of the prepaid forward contracts, and except for a certain contract, the Company granted
right of use to the financial institutions with respect to such shares. However, the collateral can be released bycash settlement at the discretion of Entities for fund procurement by using Alibaba shares. Alibaba continues
to be an equity method associate of the Company after the completion of these transactions because theCompany still has significant influence over Alibaba via voting rights.
(For the fiscal year ended March 31, 2021)
For the fiscal year ended March 31, 2021, Entities for fund procurement by using Alibaba shares had
exercised the option to settle the prepaid forward contract by cash and provided a notice to the counterparty
for early termination in April 2021. Under the prepaid forward contract, Entities for fund procurement byusing Alibaba shares is required to maintain cash that would exceed expected early termination amounts in asegregated custody account as restricted cash before the expected early termination date. ¥361,355 million($3.3 billion) of the restricted cash is recognized as “Other financial assets (current)” in the condensed interim
consolidated statement of financial position as of March 31, 2021.
On April 13, 2021, Entities for fund procurement by using Alibaba shares paid ¥313,411 million ($2.9 billion)
from restricted cash and completed the settlement of the transactions. ¥285,780 million of current portion offinancial liabilities relating to sale of shares by prepaid forward contracts and ¥28,096 million of “Derivative
financial liabilities (current)” which were recognized in the condensed interim consolidated statement offinancial position as of March 31, 2021, were derecognized. Accordingly, on the same date, ¥61,633 millionof Alibaba shares recognized in the condensed interim consolidated statement of financial position as ofMarch 31, 2021 was released from the collateral.

98SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 30, 2021

(For the six-month period ended September 30, 2021)
For the three-month period ended June 30, 2021, Entities for fund procurement by using Alibaba shares
entered into collar contracts and procured ¥329,852 million ($3.0 billion) in total. Also, for the three-month
period ended September 30, 2021, Entities for fund procurement by using Alibaba shares entered into collar
contracts and a forward contract, and procured ¥812,502 million ($7.4 billion) in total.
Further, for the three-month period ended September 30, 2021, a part of prepaid forward contracts has been
amended in terms of the cap and floor for the price of shares settled and the term of the contracts. 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 sale ofshares by prepaid forward contracts and the recognition of new financial liabilities relating to sale of shares by
prepaid forward contracts.
As a result of the amendments, upon the extinguishment of the original contracts, ¥776,580 million offinancial liabilities relating to sale of shares by prepaid forward contracts and ¥235,475 million of derivative
financial assets are derecognized. On the other hand, ¥514,172 million of new financial liabilities relating tosale of shares by prepaid forward contracts and ¥45,476 million of derivative financial assets are newly
recognized and ¥72,616 million of cash is paid as a difference in exchange value between the original and newcontracts. Further, along with the fluctuation of derivative financial assets, ¥62,674 million of deferred tax
liabilities is decreased and the same amount of income taxes is recognized as a gain, representing the tax
effect.
As of September 30, 2021, the Company set ¥1,025,926 million of Alibaba shares, which is recognized as“Investments accounted for using the equity method” in the condensed interim consolidated statement offinancial position, as collateral for ¥1,804,973 million of current portion of financial liabilities relating to saleof shares by prepaid forward contracts and ¥2,047,755 million of financial liabilities relating to sale of sharesby prepaid forward contracts.
(3) 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)

Net increase (decrease) of short-term borrowings
Net (decrease) increase of commercial paper
Total

99

Six-month period ended
September 30, 2020

Six-month period ended
September 30, 2021

796,983(8,000)(1,001,154)
92,900788,983(908,254)

SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 30, 2021

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

Proceeds from borrowings
Proceeds from issuance of corporate bonds
Proceeds from procurement by prepaid forward
contracts using shares*
Total

Six-month period ended
September 30, 2020

Six-month period ended
September 30, 2021

1,696,671
300,000

3,692,760
1,920,055

1,660,952

1,342,206

3,657,623

6,955,021

Note:* The amount was procured under the prepaid forward contracts using Alibaba shares and T-Mobile shares. The details aredescribed in “(2) Transactions for sale of Alibaba shares by prepaid forward contract” and in “Notes 6” under “(1)Components of interest-bearing debt.”(5) Components of repayment of interest-bearing debt
The components of “Repayment of interest-bearing debt” in the condensed interim consolidated statement ofcash flows are as follows:(Millions of yen)

Repayment of borrowings
Redemption of corporate bonds
Repayment of settlement of prepaid forward contracts
using shares*
Total

Six-month period ended
September 30, 2020

Six-month period ended
September 30, 2021

(3,140,565)(268,185)(3,520,633)(455,600)-(319,487)(3,408,750)(4,295,720)

Note:* Primarily, the amount was paid due to the early settlement related to the prepaid forward contract using Alibaba shares. The
details are described in “(2) Transactions for sale of Alibaba shares by prepaid forward contract.”

100SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 30, 2021

10. Financial instruments(1) Option contracts
The details of option contracts are mainly as follows:
Option contracts to which hedge accounting is not applied
As ofMarch 31, 2021

(Millions of yen)
As of
September 30, 2021

Carrying amount(fair value)

Carrying amount(fair value)

AssetsLong call option of listed stocks in asset
management subsidiaries
Short call option of listed stocks in asset

Liabilities

AssetsLiabilities

176,627-

129,089-

management subsidiaries
Contingent consideration relating to acquisition of1
T-Mobile shares
2
Prepaid forward contracts using Alibaba shares-(9,283)--

460,709-518,689-

661,615(28,096)

1,243,757-

Call spread contracts relating to prepaid forward2
contracts using Alibaba shares

42,059

-

8,792

-

Short call option for T-Mobile shares to Deutsche
3
Telekom-(204,821)-(91,322)

Notes:
1. Acquired due to the merger transaction with Sprint and T-Mobile US, Inc. on April 1, 2020 and the Company has the right toacquire 48,751,557 shares of T-Mobile for no additional consideration if certain conditions are met.
2. The details of prepaid forward contracts using Alibaba shares and call spread contracts relating to prepaid forward contracts using
Alibaba shares are described in “(2) Transactions for sale of Alibaba shares by prepaid forward contract” under “Note 9. Interestbearing debt.”
3. The decrease was primarily due to the partial exercise of the call options by Deutsche Telekom. The details are described in “Note
19. Additional information.”101

SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 30, 2021

(2) Swap contracts
The details of swap contracts are mainly as follows:
Swap contracts to which hedge accounting is not applied
As ofMarch 31, 2021

(Millions of yen)
As of
September 30, 2021

Carrying amount(fair value)

Carrying amount(fair value)

AssetsTotal return swap contracts of listed stocks in asset
management subsidiaries

Liabilities

7,057

Assets(5,390)Liabilities-(39)(3) Forward contracts
The details of forward contracts are mainly as follows:
Forward contracts to which hedge accounting is not applied
As ofMarch 31, 2021

(Millions of yen)
As of
September 30, 2021

Carrying amount(fair value)

Carrying amount(fair value)

AssetsForward contracts of listed stocks in asset
management subsidiaries
1
Prepaid forward contracts using Alibaba shares
2
Tender offer for WeWork shares

Liabilities

AssetsLiabilities

4,372

-

-

(1,749)-(76,823)

29,025--

Notes:
1. The details of prepaid forward contracts using Alibaba shares are described in “(2) Transactions for sale of Alibaba shares by
prepaid forward contract” under “Note 9. Interest-bearing debt.”
2. In March 2021, a wholly-owned subsidiary of the Company other than SVF1 commenced a tender offer to purchase WeWorkcommon shares and preferred shares from certain shareholders other than the Company at a price of $19.19 per share for the total
amount of $922 million. The tender offer is considered as forward contracts and accounted for as derivatives. The difference
between the valuation amount of common shares and preferred shares expected to purchase and the expected acquisition amount
was recorded as “Derivative financial liabilities (current)” as of March 31, 2021. The tender offer was completed in April 2021
and the derivative financial liabilities are reversed and reduced from the initially recognized amount of the purchased commonshares and preferred shares for the six-month period ended September 30, 2021.

102SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 30, 2021

11. 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, 2021
USD

As of
September 30, 2021

110.7116.84

CNY

111.92
17.30(2) Average rate for the quarter
For the six-month period ended September 30, 2020Three-month period ended
June 30, 2020
USD
CNY

(Yen)
Three-month period ended
September 30, 2020

107.7415.16

105.8815.27

For the six-month period ended September 30, 2021
Three-month period ended
June 30, 2021
USD
CNY

(Yen)
Three-month period ended
September 30, 2021

110.0017.01

110.4717.09

103

SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 30, 2021

12. Equity(1) 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 theoption 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.
(2) Treasury stock
Changes in treasury stock are as follows:(Thousands of shares)

Six-month period ended
September 30, 2020

Six-month period ended
September 30, 2021

Balance at the beginning of the period
1
Increase during the period2
Decrease during the period

21,818191,077(2,401)

351,298
25,980(367,941)

Balance at the end of the period

210,494

9,337

Notes:
1. For the six-month period ended September 30, 2021, due to purchases of treasury stock under the resolutions passed at theBoard of Directors meetings held on July 30, 2020, the number of treasury stock increased by 25,980 thousand shares(amount purchased ¥257,777 million) as part of “SoftBank announces ¥4.5 trillion ($41 billion) program to repurchase sharesand reduce debt” announced on March 23, 2020 (the “¥4.5 trillion program”). In addition, the purchases of treasury stock up
to ¥2 trillion have been completed based on the ¥4.5 trillion program with the completion of purchases of treasury stock under
the resolution.
2. For the six-month period ended September 30, 2021, the decrease was made mainly under the resolutions passed at the Boardof Directors meeting held on April 28, 2021 and May 12, 2021. The Company retired its treasury stock of 366,860 thousand
shares in total on May 11, 2021 and May 20, 2021. As a result of the transaction, retaining earnings and treasury stock
decreased by ¥2,475,817 million, respectively.

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

As ofMarch 31, 2021
Equity financial assets at FVTOCI
Debt financial assets at FVTOCI
Cash flow hedges
Exchange differences on translating foreign
operations
Total

104

As of
September 30, 2021

24,099390
42,962

36,594404
45,955

270,878556,632

338,329

639,585

SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 30, 2021

13. 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 shares

Six-month period ended
September 30, 2020

Six-month period ended
September 30, 2021

421,755

3,149(8,060)62,951(95,082)(79,778)(292,346)

76,185

162,335

49,524

235,859
151,690
3,463

87,19368,49912,205

579,614279,928

1

Realized gain (loss) on investments at asset
management subsidiaries
Unrealized loss on valuation of investments at asset
management subsidiaries
Derivative gain (loss) on investments at asset
management subsidiaries
Realized gain on investments
Unrealized gain on valuation of investments
2
Derivative gain on investments
Other
Total

Notes:
1. On September 23, 2021, Deutsche Telekom partially exercised the call options over 45,366,669 shares out of 101,491,623
shares of T-Mobile held through a wholly-owned subsidiary of the Company and the wholly-owned subsidiary acquired newly
issued 225,000,000 shares of Deutsche Telekom as its consideration. As a result, ¥3,149 million of gain relating to sales of TMobile shares was recorded for the six-month period ended September 30, 2021. Cumulative losses on T-Mobile shares andthe call options associated with the transaction are ¥13,447 million. Of this, ¥16,596 million of loss was recorded for the fiscal
year ended March 31, 2021. The details are described in “Note 19. Additional information.”
2. For the six-month period ended September 30, 2021, ¥57,980 million of derivative gain on investments was recorded due tochanges in the fair value of contingent consideration related to the acquisition of T-Mobile shares through the merger
transaction with Sprint and T-Mobile US, Inc. The details of contingent consideration are described in “Notes 1” in “(1)Option contracts” under “Note 10. Financial instruments.”(2) Gain and loss on investments at SVF1, SVF2, and others
The details are described in “Note 4. SoftBank Vision Funds business.”

105SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 30, 2021

(3) Gain and loss on investments at Latin America Funds
The components of gain and loss on investments at Latin America Funds are as follows:(Millions of yen)

Realized loss on investments
Unrealized gain on valuation of investments
Change in valuation for the fiscal year
Reclassified to realized loss recorded in the past1
fiscal year
Derivative gain on investments
2
Effect of foreign exchange translation
Other
Total

Six-month period ended
September 30, 2020

Six-month period ended
September 30, 2021-

(9,114)

63,178

193,920

-

8,034

219
71

364
494

63,468

193,698

Notes:
1. It represents the unrealized gain and loss on valuation of investments recorded as “Gain (loss) on investments at Latin
America Funds” in the past fiscal years, which are reclassified to realized gain and loss on investments due to the realization
for the six-month period ended September 30, 2021.
2. Unrealized gain and loss on valuation of investments are translated using the average exchange rate for the quarter in which
the gain and loss were recognized, while realized gain and loss on investments are translated using the average exchange rate
for the quarter in which the shares were disposed. Foreign currency translation effects are arising from the different foreign
currency exchange rates used for unrealized gain and loss on valuation and realized gain and loss.

Also, in SoftBank Latin America Funds, SoftBank Group Corp. introduced a co-investment program withrestricted right to receive distributions in September 2021. The details are described in “Note 18. Related party
transactions.”

106SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 30, 2021

14. Finance cost
The components of finance cost are as follows:(Millions of yen)Six-month period ended
September 30, 2020

Six-month period ended
September 30, 2021

(153,808)(185,599)

Interest expenses

15. Derivative gain (loss) (excluding gain (loss) on investments)
For the six-month period ended September 30, 2021, derivative gain of ¥625,116 million was recorded for the
prepaid forward contracts using Alibaba shares and the call spread contracts relating to prepaid forward contracts
using Alibaba shares. The details of the contracts are described in “(2) Transactions for sale of Alibaba shares by
prepaid forward contract” under “Note 9. Interest-bearing debt.”

16. Other gain
The components of other gain and loss are as follows:(Millions of yen)Interest income
Foreign exchange gain (loss)
1
Gain relating to loss of control over subsidiaries
2

Dilution gain from changes in equity interest

Reversal of impairment losses on equity method3
investments
Reversal of allowance for loan commitment losses
Reversal of allowance for financial guarantee
contract losses
Other
Total

Six-month period ended
September 30, 2020

Six-month period ended
September 30, 2021

7,069
51,479-18,294(92,197)
92,44739,88553,658-42,18958,364-

21,466-(6,541)(16,416)

171,722

97,975

Notes:
1. Primarily recorded as Boston Dynamics was no longer a subsidiary of the Company. The details are described in “Note 7.
Disposal group classified as held for sale.”
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. ¥42,189 million of reversal of impairment losses was recorded as the fair value of WeWork shares accounted for using theequity method increased.

107SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 30, 2021

17. Supplemental information to the condensed interim consolidated statement of cash flows(1) Cash flows from discontinued operations
Cash flows from continuing operations and cash flows from discontinued operations are included in thecondensed interim consolidated statement of cash flows.
(2) Income taxes paid and income taxes refunded
For the six-month period ended September 30, 2021
Payment of withholding income tax related to dividends within the group companies of ¥268,621 million is
included in “Income taxes paid.”
In addition, withholding income tax related to dividends within the group companies of ¥247,259 million is
included in “Income taxes refunded.”(3) Proceeds from withdrawal of restricted cash
For the six-month period ended September 30, 2021
¥359,038 million of proceeds, which was required to be maintained in a segregated custody account for the
early termination of financial liabilities related to the settlement of prepaid forward contracts using Alibaba
shares as of March 31, 2021, is included in “Proceeds from withdrawal of restricted cash.” The details aredescribed in “(2) Transactions for sale of Alibaba shares by prepaid forward contract” under “Note 9. Interestbearing debt.”(4) Significant non-cash transactions
For the six-month period ended September 30, 2021
Deutsche Telecom partially exercised the call option over T-Mobile shares which the Company granted inJune 2020. Accordingly, the Company sold 45,366,669 shares of T-Mobile held, through a wholly-owned
subsidiary, to Deutsche Telecom and received newly issued 225,000,000 shares of Deutsche Telecom as its
consideration. The transaction corresponds to a non-cash transaction. The details are described in “Note 19.
Additional information.”108

SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 30, 2021

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

109

SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 30, 2021

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

Nature of relationship

Nature of transaction

Receipt of capital
contribution and related
adjustments to SVF2

For the six-month
period ended
September 30,
2021
Amount oftransaction
4

180,967($1,638 million)

As of
September 30, 2021
Balance atperiod end
6,7

164,469($1,469 million)

1,2,3

Masayoshi Son(MASA USA
LLC (MgmtCo))

Chairman &CEO of SoftBank
Group Corp. andrelated entities ofwhich he holds
more than onehalf of the voting
rightsThe premium received
on SVF2 LLC’s
receivables

475($4 million)

Offsetting settlement of
distributions (return ofcontribution) from SVF2
5
LLC and receivables

19,104($173 million)

MgmtCo’s Equity
8
interests in SVF2 LLC-

4

Net balance at period end（Receivables in SVF2 LLC less9
MgmtCo’s Equity interests in SVF2 LLC）

164,469($1,469 million)-

Notes:
1. Restrictions on rights to receive distributions to MgmtCo
MgmtCo’s right to receive distributions from its investment is subject to certain restrictions. Distributions from SVF2 LLC to
MgmtCo are fully restricted and are not paid until the sum of proceeds received by SVF2 LLC from realized investments plus theaggregate fair value of all of SVF2 LLC’s unrealized investments (net of borrowings) exceeds 130% of the aggregate acquisition
cost of all of SVF2 LLC’s investments. After the ratio exceeds 130%, restrictions on distributions to MgmtCo are released
proportionately in increments of 10%, and when the ratio reaches 200%, all restrictions are released and MgmtCo is entitled toreceive the full amount of the distribution. In the event that, upon the liquidation of SVF2 LLC, the amount of the distributions
received by MgmtCo exceeds the amount that would have been distributed to MgmtCo if the ratio in effect at the time ofliquidation was applied throughout the life of SVF2 LLC, then any such excess amounts will be subject to clawback from
MgmtCo.
2. Nature of the Equity contribution by MgmtCo
The Equity interests contributed by the Company and MgmtCo are subordinated to the Preferred Equity contributed separately by
the Company to SVF2 LLC. If there is a shortfall in the amount of return of Preferred Equity contributions and the amount of
fixed distributions to be received by the Preferred Equity holders at the time of the final profit distribution by SVF2 LLC, then
MgmtCo is obligated to pay the shortfall proportional to Equity interests’ ratio up to the total amount of return of Equity
contributions and the distributions received by MgmtCo.

110

SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 30, 2021

3. Management fee and performance fees to be charged to MgmtCo
The terms of the management fee and performance fee to be charged to MgmtCo are the same as those to be charged to theCompany as an Equity investor in SVF2 LLC.
4. The amount of transaction with MgmtCo related to receipt of capital contribution
The amount of the transaction for “Receipt of capital contribution and related adjustments in SVF2 LLC” is MgmtCo’s Equity
Acquisition Amount in SVF2 LLC, which consists of ¥159,956 million ($1,448 million) calculated based on MgmtCo’s Equity
interests of 17.25% in the SVF2’s initial acquisition costs of the portfolio companies held by SVF2 LLC and ¥20,382 million($184 million) of related adjustments calculated based on 17.25% interest in the increase in the portfolio companies’ fair value
from the initial acquisition costs at SVF2 to June 30, 2021, and ¥629 million ($6 million) of the adjustment equivalent to interests
for the period from the Company’s contribution to SVF2 until June 30, 2021. The total amount of MgmtCo’s committed capitalfor the program is $2.6 billion and the total amount after adding the related adjustments to the committed capital is expected to be$2.9 billion. All capital contributions from MgmtCo have not been completed yet as of September 30, 2021 and the remaining
contributions have been made on and after October 1, 2021, sequentially. Total MgmtCo’s Equity Acquisition Amount will be
determined when all capital contributions from MgmtCo have been completed.
MgmtCo is entitled to make full or partial payment of its Equity Acquisition Amount at any point in time at its discretion fromthe date it became an investor in SVF2 LLC to the end of the company life of SVF2 LLC. MgmtCo is required to pay a premiumof 3% per annum on the unpaid Equity Acquisition Amount until the unpaid amount is paid in full. “The premium received on
SVF2’s receivables” refers to the amount of such premium accrued in the current period. MgmtCo is also entitled to make full or
partial payment of the premium at any point in time, at its discretion on the same terms and conditions as Equity Acquisition
Amount.
5. Offsetting settlement between distributions from SVF2 LLC and receivables
Any distributable amount from SVF2 LLC to MgmtCo is offset against the receivables at the time of the distribution notice andno distribution payments to MgmtCo are made until the SVF2 LLC’s receivables are paid in full.
6. Balance at period end of receivables from MgmtCo for receipt of capital contribution and related adjustments
Balance at period end is the balance of SVF2 LLC’s receivables consist of the balance related to receipt of capital contribution,
related adjustments and premiums received, less any decrease in receivables due to offsetting settlement with distributions to
MgmtCo.
7. Collateral and other credit protection for receivables
In order to secure the receivables of SVF2 LLC related to Equity Acquisition Amount and the premium thereon, all of the Equity
interests in SVF2 LLC held by MgmtCo were pledged as collateral. In the event that MgmtCo pays into the receivables or offsets
such receivables with distributions due to it from SVF2 LLC, the collateral is released to the extent that the cumulative amountsof payments and offsets exceeds the balance of the receivables after deduction of such cumulative amounts. Masayoshi Son also
provides a personal guarantee to the receivables up to the balance of the receivables. In addition, as of September 30, 2021,
8,897,100 shares of SoftBank Group Corp. are deposited in SVF2 LLC by Masayoshi Son. The deposited shares of SoftBank
Group Corp. will be released only where the entire amount of receivables is settled. SVF2 LLC may acquire the deposited
SoftBank Group Corp. shares without consideration where there are any unpaid receivables in SVF2 LLC after the enforcementof the collateral and personal guarantees by SVF2 LLC.
8. MgmtCo’s Equity interest in SVF2 LLC
The amount represents SVF2 LLC’s net assets attributable to MgmtCo (before deduction of receivables), which is included in“Third-party interests in SVF1 and SVF2” in the condensed interim consolidated statement of financial position.
9. Net balance at period end
Net balance at period end is the balance of receivables held by SVF2 LLC of ¥164,469 million ($1,469 million) less MgmtCo’s
Equity interest in SVF2 LLC of ¥164,469 million ($1,469 million).

111

SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 30, 2021

(2) Transactions between SoftBank Latin America Funds and related parties（Millions of yen）
Name of thecompany orindividual

Nature of relationship

Masayoshi Son(MASA USA
LLC (MgmtCo))

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

Receipt of capital
contribution in SLA
LLC and related
1, 2, 3
adjustments

For the six-month
period ended
September 30,
2021
Amount oftransaction
4

As of
September 30, 2021
Balance atperiod end
5, 6

76,367($691 million)

77,369($691 million)-

77,236($690 million)

Net balance at period end（Receivables in SLA LLC less8
MgmtCo’s Equity interests in SLA LLC）

133($1 million)

MgmtCo’s Equity
7
interests in SLA LLC

Notes:
1. Restrictions on rights to receive distributions to MgmtCo
MgmtCo’s rights to receive distributions from its investment is subject to certain restrictions. Distributions from SLA LLC to
MgmtCo are fully restricted and are not paid until the sum of proceeds received by SLA LLC from realized investments plus theaggregate fair value of all of SLA LLC’s unrealized investments (net of borrowings) exceeds 130% of the aggregate acquisition
cost of all of SLA LLC’s investments. After the ratio exceeds 130%, restrictions on distributions to MgmtCo are released
proportionately in increments of 10%, and when the ratio reaches 200%, all restrictions are released and MgmtCo is entitled toreceive the full amount of the distribution. In the event that, upon the liquidation of SLA LLC, the amount of the distributions
received by MgmtCo exceeds the amount that would have been distributed to MgmtCo if the ratio in effect at the time ofliquidation was applied throughout the life of SVF2 LLC, then any such excess amounts will be subject to clawback from
MgmtCo.
2. Nature of the Equity contribution by MgmtCo
The Equity interests contributed by the Company and MgmtCo are subordinated to the Preferred Equity contributed separately by
the Company to SLA LLC. If there is a shortfall in the amount of return of Preferred Equity contributions and the amount of
fixed distributions to be received by the Preferred Equity holders at the time of the final profit distribution by SLA LLC, then
MgmtCo is obligated to pay the shortfall proportional to Equity interests’ ratio up to the total amount of return of Equity
contributions and the distributions received by MgmtCo.
3. Management fee and performance fees to be charged to MgmtCo
The terms of the management fee and performance fee to be charged to MgmtCo are the same as those to be charged to theCompany as an Equity investor in SLA LLC.

112

SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 30, 2021

4. The amount of transaction with MgmtCo related to receipt of capital contribution
The amount of the transaction for “Receipt of capital contribution and related adjustments in SLA LLC” is MgmtCo’s Equity
Acquisition Amount in SoftBank Latin America Funds, which consists of ¥45,060 million ($408 million) calculated based on
MgmtCo’s Equity interests of 17.25% in the SoftBank Latin America Funds’ initial acquisition costs of the portfolio companies
held by SoftBank Latin America Funds and ¥30,535 million ($276 million) of related adjustments calculated based on 17.25%
interest in the increase in the portfolio companies’ fair value from the initial acquisition costs at SoftBank Latin America Funds
to June 30, 2021, and ¥772 million ($7 million) of the adjustment equivalent to interests for the period from the Company’scontribution to SoftBank Latin America Funds until June 30, 2021.
As of September 30, 2021, capital contribution with respect to MgmtCo’s committed capital and related adjustments to SLA LLC
under the Program have been completed.
MgmtCo is entitled to make full or partial payment of its Equity Acquisition Amount at any point in time at its discretion fromthe date it became an investor in SLA LLC to the end of the company life of SLA LLC. MgmtCo is required to pay a premium of
3% per annum on the unpaid Equity Acquisition Amount until the unpaid amount is paid in full. MgmtCo is also entitled to makefull or partial payment of the premium at any point in time, at its discretion on the same terms and conditions as Equity
Acquisition Amount.
Any distributable amount from SLA LLC to MgmtCo are offset against the receivables at the time of the distribution notice andno distribution payments to MgmtCo are made until the SLA LLC’s receivables are paid in full.
5. Balance at period end of receivables from MgmtCo for receipt of capital contribution and related adjustments
Balance at period end is the balance of SLA LLC’s receivables which consists of the balance related to receipt of capital
contribution and related adjustments.
6. Collateral and other credit protection for receivables
In order to secure the receivables of SLA LLC related to Equity Acquisition Amount and the premium thereon, all of the Equity
interests in SLA LLC held by MgmtCo were pledged as collateral. In the event that MgmtCo pays into the receivables or offsets
such receivables with distributions due to it from SLA LLC, the collateral is released to the extent that the cumulative amounts of
payments and offsets exceeds the balance of the receivables after deduction of such cumulative amounts. Masayoshi Son also
provides a personal guarantee to the receivables up to the balance of the receivables. In addition, as of September 30, 2021,
2,168,500 shares of SoftBank Group Corp. are deposited in SLA LLC by Masayoshi Son. The deposited shares of SoftBank
Group Corp. will be released only where the entire amount of receivables is settled. SLA LLC may acquire the deposited
SoftBank Group Corp. shares without consideration where there are any unpaid receivables in SLA LLC after the enforcement of
the collateral and personal guarantees by SLA LLC.
7. MgmtCo’s Equity interest in SLA LLC
The amount represents SLA LLC’s net assets attributable to MgmtCo (before deduction of receivables), which is included in“Other financial liabilities (non-current)” in the condensed interim consolidated statements of financial position.
8. Net balance at period end
Net balance at period end is the balance of receivables held by SLA LLC of ¥77,369 million ($691 million) less MgmtCo’s
Equity interest in SLA LLC of ¥77,236 million ($690 million).

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19. Additional information(Partial sale of T-Mobile shares for the six-month period ended September 30, 2021)
On September 6, 2021, the Company entered into a master framework agreement (“the Agreement”) with
Deutsche Telekom, pursuant to which Deutsche Telekom agreed to partially exercise its right to acquire theshares of T-Mobile in accordance with the terms of the call options (the “Call Options”) granted by the Company
to Deutsche Telekom in June 2020, and to amend the execution conditions of the same. Following the exercise of
the Call Options, the Company sold 45,366,669 shares of T-Mobile held, though a wholly-owned subsidiary of
the Company, to Deutsche Telekom and received newly issued 225,000,000 shares of Deutsche Telekom as its
consideration. Under the Agreement, Deutsche Telekom also provided its consent for the Company to haveadditional flexibility to pledge its T-Mobile shares in connection with the entry into margin loans and othermonetization transactions and agreed that it will prioritize the use of cash proceeds from certain divestitures toexercise the additional Call Options for cash up to an aggregate of $2.4 billion of total exercise price, subject tocertain conditions. Following entry into the Agreement, the Company carried out the monetization transactions
using T-Mobile shares.
(1) Outline of the Call Options to Deutsche Telekom
In June 2020, the Company granted to Deutsche Telekom the Call Options over 101,491,623 shares of TMobile.
a. For the Call Options over 44,905,479 shares (the “Fixed Call Options”), a strike price of the call option is$101.455 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 (the “Floating Call Options”), a strike price of the call option isequal to the average of the daily volume-weighted average price of the shares of T-Mobile for each of the
20 trading days immediately prior to exercise. Deutsche Telekom can exercise the Call Options after the
exercise of rights described in the above a. from October 2, 2020 to May 22, 2024 and, after May 22, 2024,
can exercise any time regardless of the exercise of rights described in the above a.
Note:* The Call Options expire on June 22, 2024, unless certain events occur that trigger an earlier expiration date.

(2) Partial exercise of the Call Options
On September 23, 2021, Deutsche Telekom exercised the Fixed Call Options for 26,348,874 shares and the
Floating Call Options for 19,017,795 shares and a wholly-owned subsidiary of the Company received newly
issued 225,000,000 shares of Deutsche Telekom as its consideration. Adjustments were made for a strike priceof the Floating Call Options to be equal to the acquired 225,000,000 shares of Deutsche Telekom from thepartial exercise of the Call Options.
(3) Change in conditions for the unexercised Call Options
A strike price of the Floating Call Options was changed to the lesser of the following a. and b.

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For the Six-Month Period Ended September 30, 2021

a. The average of the daily volume weighted average prices of T-Mobile shares for the 20 scheduled trading
days beginning on, and including, the Scheduled Trading Day immediately following the date of delivery of
the Notice of Exercise.
b. The average of the daily volume weighted average prices of T-Mobile shares for (a) the period of 20
Trading Days ending with the date of delivery of the Notice of Exercise (or ending on the immediately
preceding Trading Day if the date of delivery of the Notice of Exercise is not a Trading Day) and (b) the 20
Scheduled Trading Days beginning on, and including, the Scheduled Trading Day immediately following
the date of delivery of the Notice of Exercise.
In addition, the expiration time for the unexercised Call Options is May 28, 2024 and the Call Options can be
exercised at any time.
(4) Number of T-Mobile shares to be sold by partial exercise of the Call Options, number of shares subject to theunexercised Call Options and number of the shares held by the Company before/after the transactions
a. Number of shares held before the partial exercise

106,291,623 sharesb. Number of the sold shares by the partial exercise

45,366,669 sharesc. Number of shares held after the partial exercise

60,924,954 sharesd. Number of shares subject to the unexercised Call Options

56,124,954 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.

(5) Outline of the monetization
For the six-month period ended September 30, 2021, a wholly-owned subsidiary of the Company procured$1.81 billion through prepaid forward contracts by using 17,935,000 shares of T-Mobile and $2.65 billion
through a new margin loan by using 42,989,954 shares of T-Mobile pledged as collateral, and made an early
repayment of $4.38 billion of the previous margin loan by using 106,291,623 shares of T-Mobile pledged ascollateral. In addition, $1.25 billion was procured through a bridge loan by using 45,366,669 shares of TMobile pledged as collateral. T-Mobile shares pledged as collateral for the bridge loan were replaced by
225,000,000 shares of Deutsche Telekom as Deutsche Telekom partially exercised the Call Options and thewholly-owned subsidiary of the Company received Deutsche Telekom shares as its consideration. The details
are described in “Notes 1, 4, and 6” in “(1) Components of interest-bearing debt” under “Note 9. Interest
bearing debts.”

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