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

SoftBank Group Corp.
Consolidated Financial Report
For the Six-Month Period Ended September 30, 2022 (IFRS)Tokyo, November 11, 2022

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, 2022
Six-month period ended
September 30, 2021

Incomebefore income tax

Net income

AmountAmountAmount%%¥3,182,477

6.7¥292,636 (72.0)¥2,983,504

13.4¥1,046,971 (27.4)

Net income
attributable toowners of the parent%¥(13,562)

Amount-¥590,125 (68.6)

Basic earnings per
share (Yen)

Diluted earnings per
share (Yen)Six-month period ended
September 30, 2022¥(93.65)¥(95.14)Six-month period ended
September 30, 2021

¥202.46¥195.62%¥(129,098)

Total
comprehensive
incomeAmount%-¥2,541,205 184.8¥363,569 (80.7)¥892,161 (42.9)(2) Financial Position
Total assets

Total equity

Equityattributable toowners of theparentAs of September 30, 2022

¥46,200,567¥13,519,609¥11,871,807

25.7

As of March 31, 2022

¥47,544,670¥11,707,762¥9,975,674

21.0

2.

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

Dividends
Dividends per shareFirst quarter

Second quarter

Third quarter

Fourth quarter

Total

(Yen)

(Yen)

(Yen)

(Yen)

(Yen)

Fiscal year ended
March 31, 2022

-

22.00

-

22.00

44.00

Fiscal year ending
March 31, 2023

-

22.00
-

22.00

44.00

Fiscal year ending
March 31, 2023 (Forecasted)

Notes:
1. On October 28, 2022, the Company announced that the interim dividend for the fiscal year ending March 31, 2023 was determined
under the resolution passed at the Board of Directors meeting held on the same date.
2. Revision of the latest forecasts on the dividends: No

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

Changes in accounting policies other than those in [1]: No
Changes in accounting estimates: No(3) Number of shares issued (common stock)[1] Number of shares issued (including treasury stock):
As of September 30, 2022:
1,722,953,730 shares
As of March 31, 2022:
1,722,953,730 shares[2]

Number of shares of treasury stock:
As of September 30, 2022:
As of March 31, 2022:[3]

173,065,327 shares
76,163,508 shares

Number of average shares outstanding during six-month period (April-September):
As of September 30, 2022:

1,602,801,161 shares

As of September 30, 2021:

1,718,003,004 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 11, 2022 (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. 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, 2022

(Appendix)
Contents

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

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

P.3

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.16
(c) SoftBank Segment ............................................................................................................................ P.24(d) Arm Segment .................................................................................................................................... P.26(e) Other ................................................................................................................................................. P.30
(2) Overview of Financial Position ................................................................................................................ P.31
(3) Overview of Cash Flows .......................................................................................................................... P.40
(4) Forecasts ................................................................................................................................................... P.43
2. Condensed Interim Consolidated Financial Statements and Primary Notes .................................................. P.45
(1) Condensed Interim Consolidated Statement of Financial Position .......................................................... P.47
(2) Condensed Interim Consolidated Statement of Profit or Loss
and Condensed Interim Consolidated Statement of Comprehensive Income .......................................... P.49
(3) Condensed Interim Consolidated Statement of Changes in Equity .......................................................... P.53
(4) Condensed Interim Consolidated Statement of Cash Flows ..................................................................... P.57
(5) Significant Doubt about Going Concern Assumption .............................................................................. P.59
(6) Notes to Condensed Interim Consolidated Financial Statements ............................................................. P.59
Disclaimer
This material does not constitute an offer to sell, or a solicitation of an offer to buy, limited partnership interests or comparable
limited liability equity interests in any funds (including SoftBank Vision Fund 1, SoftBank Vision Fund 2, and SoftBank Latin
America Funds) managed by any of the subsidiaries of SoftBank Group Corp. (“SBG”), including SB Global Advisers Limited, SB
Investment Advisers (UK) Limited, or their respective affiliates, or any securities in any jurisdiction, nor should it be relied upon as
such in any way.
Notice Regarding PFIC Status
It is possible that SBG and certain subsidiaries of SBG may be a “passive foreign investment company” (“PFIC”) under the U.S.
Internal Revenue Code of 1986, as amended, for its current fiscal year due to the composition of its assets and the nature of its
income. For the fiscal year ended March 31, 2022, 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 tothem if SBG and its subsidiaries are classified as PFICs. SBG is not responsible for any tax treatments or consequences thereof withrespect to U.S. holders of SBG’s shares.

1

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

Definition of Company Names and Abbreviations Used in This Appendix

Company names and abbreviations used in this appendix, unless otherwise stated or interpreted differently in thecontext, are as follows:
Company names/Abbreviations
Definition
SoftBank Group Corp. or SBG
SoftBank Group Corp. (stand-alone basis)
The Company
SoftBank Group Corp. and its subsidiaries*Each of the following names or abbreviations indicates the respective company and its subsidiaries, if any.
SB Northstar or
SB Northstar LP
asset management subsidiaries
SoftBank Vision Fund 1 or SVF1
SoftBank Vision Fund L.P. and its alternative investment vehicles
SoftBank Vision Fund 2 or SVF2
SoftBank Vision Fund II-2 L.P.
SVF2 LLC
SVF II Investment Holdings LLC
SoftBank Latin America Funds or
SBLA Latin America Fund LLC
LatAm Funds
SoftBank Vision Funds or SVF
SVF1, SVF2, and LatAm Funds
SBIA
SB Investment Advisers (UK) Limited
SBIA USSB Investment Advisers (US) Inc.
SBGASB Global Advisers Limited
Arm
Arm Limited
Alibaba
Alibaba Group Holding Limited
MgmtCoMASA USA LLC
The first quarter
Three-month period ended June 30, 2022
The second quarter
Three-month period ended September 30, 2022
The period
Six-month period ended September 30, 2022
The second quarter-end
September 30, 2022
The fiscal year
Fiscal year ending March 31, 2023
The previous fiscal year
Fiscal year ended March 31, 2022
The previous fiscal year-end
March 31, 2022
Exchange Rates Used for Translations

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

Q1¥110.00

Fiscal year ended March 31, 2022
Q2
Q3
Q4¥110.47¥113.60¥117.10¥122.39

Fiscal year ending
March 31, 2023
Q1
Q2¥129.04¥138.68¥144.81

CHANGES IN PRESENTATION OF CONSOLIDATED STATEMENT OF PROFIT OR LOSS ANDREPORTABLE SEGMENTS
Integration of the Latin America Funds Segment into the SoftBank Vision Funds Segment
From the first quarter, the Latin America Funds segment has been integrated into the SoftBank Vision Funds
segment, following a review of the segment management classification after SBGA, the manager of SVF2, began
managing LatAm Funds. In line with this, gains and losses on investments at LatAm Funds, which were presented
as gains and losses on investments at Latin America Funds in the past fiscal year, are now included in gains andlosses on investments at SoftBank Vision Funds. Also, the change in third-party interests in LatAm Funds, which
was included in other gains and losses in the past fiscal year, is now included in change in third-party interests in
SVF. Information for the same period of the previous fiscal year has been reclassified and presented accordingly.
Presentations in the Consolidated Statement of Financial Position and Consolidated Statement of Cash Flows havealso been changed. For details, see “1. Changes in presentation” under “(6) Notes to Condensed Interim
Consolidated Financial Statements” in “2. Condensed Interim Consolidated Financial Statements and Primary
Notes.”
2

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

1. Results of Operations(1) Overview of Results of Operations
1. Alibaba*1
The Company recorded a total profit of ¥5,371.6 billion as a result of the early physical settlement (the“Early Physical Settlement”) of prepaid forward contracts corresponding to 242 million American Depository
Receipts (ADRs) of Alibaba shares from August to September 2022. During the course of the Early PhysicalSettlement, the Company’s voting ownership in Alibaba fell below 20%, and Alibaba was therefore excluded
from the associates of the Company.
Account in the condensed interim
consolidated statement of
Amount profit or loss
Gain on settlement of prepaid forward contracts
using Alibaba shares pertaining to the Early
Gain on investments at Investment¥584.8 billion
Physical Settlement
Business of Holding Companies
Gain from remeasurement of Alibaba shares held
¥3,996.7 billion
upon exclusion from associates
Derivative gain on prepaid forward contracts that
Derivative gain (excluding gain
¥790.1 billion (loss) on investments)
are the subject of the Early Physical Settlement
Total (contribution to income before income tax)
¥5,371.6 billion
Apart from the above, the Company recorded an unrealized valuation loss of ¥1,077.1 billion on Alibaba
shares that continued to be held, following a decrease in the share price that occurred after Alibaba’s
exclusion from the associates of the Company.
2. SVF*2
Gross performance since inception was a $13.5 billion gain in SVF1 and a $14.6 billion loss in SVF2.
3. Highlights of results◆ Loss of ¥849.6 billion on investments- ¥3,524.7 billion investment gain at Investment Business of Holding Companies; which included· Gain of ¥4,581.5 billion relating to settlement of prepaid forward contracts using Alibaba shares pertaining
to the Early Physical Settlement· Unrealized valuation loss of ¥1,077.1 billion due to a decrease in the Alibaba share price from the time of
Alibaba’s exclusion from the Company’s associates up to the second quarter-end- ¥4,353.5 billion investment loss at SoftBank Vision Funds; which included· Realized gain (net) of ¥3.3 billion and unrealized valuation loss (net) of ¥1,845.8 billion at SVF1
· Realized gain (net) of ¥0.8 billion and unrealized valuation loss (net) of ¥2,021.6 billion at SVF2
*3
Share prices of numerous public portfolio companies declined amid the weakness in global stock markets,*3and the fair value of a wide range of private portfolio companies also decreased.
◆ Income before income tax of ¥292.6 billion (decrease of ¥754.3 billion yoy)reflecting the recordings of:- Finance cost of ¥314.2 billion- Foreign exchange loss of ¥1,095.4 billion due to an increase in U.S. dollar-denominated liabilities (net) of
SBG in yen terms caused by the weaker yen- Derivative gain (excluding gain (loss) on investments) of ¥1,029.8 billion related to prepaid forward
contracts using Alibaba shares, due to the decrease in the Alibaba share price- Decrease in third-party interests at SVF of ¥1,018.7 billion◆ Net loss attributable to owners of the parent of ¥129.1 billion (deterioration of ¥492.7 billion yoy)reflecting the recordings of:- Income tax of ¥306.2 billion- Net income attributable to non-controlling interests of ¥115.5 billion

3

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

4. Maintained prudent defensive financial management - with continued monetization of, and contraction*4
in investments. These resulted in a large improvement in LTV.
◆ Continued monetization of investments- Raised $18.35 billion through prepaid forward contracts using Alibaba shares in the period.
- Sold 21.2 million T-Mobile shares for $2.40 billion in the first quarter.
- SVF1 and SVF2 sold investments, including full exits of seven portfolio companies such as Uber and KE
1
Holdings, for a total of $3.60 billion in the period.
◆ Contraction in investments
1- SVF1 invested a total of $0.26 billion in the period (compared to $2.50 billion invested in the same periodof the previous fiscal year).
- SVF2 invested a total of $2.24 billion in the period (compared to $27.17 billion invested in the same periodof the previous fiscal year), bringing the fund’s total cost to $49.79 billion.
1- LatAm Funds invested a total of $0.25 billion in the period (compared to $2.33 billion invested in the same
period of the previous fiscal year).
◆ Integration of international investment functions to improve operational efficiency

In October 2022, the Company decided to integrate the operations of SBIA and SoftBank Group*5International, which are collectively responsible for the Company’s global investment activities, to improve
the operational efficiency of international investment functions.
5. Reduced interest-bearing debt by ¥2,849.7 billion at SBG, its subsidiaries engaged in fund procurement,
etc., from the previous fiscal year-end (excluding a decrease associated with foreign bond repurchases
conducted in October), as a result of proactive debt repayment and the Early Physical Settlement.
- Reduced financial liabilities relating to the sale of shares by prepaid forward contracts by $27.57 billion due
to the Early Physical Settlement (including $13.47 billion relating to contracts concluded in the period).
- Repaid borrowings of $4.50 billion made through commitment lines in the first quarter.
- Repaid the entire ¥325.2 billion of bank loans (senior loans) in the second quarter, including ¥292.7 billion
repaid early.
- Repaid $6.0 billion in a margin loan borrowed through Alibaba shares in full in the second quarter.
- Repaid $2.06 billion in a margin loan borrowed through T-Mobile shares in the period.
- Repurchased a total of $2.27 billion worth of USD-denominated hybrid notes and USD- and EURdenominated senior notes (at face values) in October 2022, subsequent to the second quarter.
6. Continued share repurchase- On October 17, 2022, SBG completed the full acquisition of shares under the ¥1 trillion share repurchaseprogram authorized in November 2021. The repurchase includes shares totaling ¥523.1 billion acquired in
the period.
- On November 10, 2022, SBG completed the full acquisition of shares under the ¥400 billion share
repurchase program authorized in August 2022. The share repurchase under the program had been started on
October 18, 2022.
Notes:
1. Certain contracts that became due for settlement during the implementation period were also settled.
2. Gross amounts before deductions such as third-party interests and taxes.
3. Public portfolio companies are shares traded on stock exchanges or over-the-counter markets. Private portfolio companies are thosethat do not fall under the category of public portfolio companies. The same applies hereinafter.
4. The ratio of liabilities to holding assets, which is calculated as adjusted net interest-bearing debt divided by equity value of holdings.
Equity value of holdings and adjusted net interest-bearing debt each exclude amounts to be settled at maturity or borrowings that arepart of asset-backed finance. The calculation of adjusted net interest-bearing debt excludes interest-bearing debt and cash and cash
equivalents, etc., attributable to entities managed on a self-financing basis, such as SoftBank Corp. (including its subsidiaries such
as Z Holdings Corporation), SVF1, SVF2, LatAm Funds, Arm, and PayPay Corporation, as well as SB Northstar.
5. Refers collectively to several entities, including SoftBank Group Capital Limited and SB Group US, Inc.

4

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

a. Consolidated Results of Operations(Millions of yen)Six months ended September 30
2021
2022
Net sales
Gross profit
Gain on investments

ChangeChange %2,983,504
1,635,033

3,182,477
1,721,329

198,973
86,296

6.7%
5.3%

A

279,930

3,524,655

3,244,725-

B(684,793)
9,628(395,235)(4,353,542)(20,711)(849,598)(3,668,749)(30,339)(454,363)-

C

Selling, general and administrative
expensesFinance cost
Foreign exchange loss

(1,186,672)(185,599)(92,197)(1,254,340)(314,217)(1,095,426)(67,668)(128,618)(1,003,229)

5.7%
69.3%
-

D
E

Income (loss) on equity method
investments

265,331(54,870)(320,201)-

F

Derivative gain
(excluding gain (loss) on investments)

620,959

1,029,780

408,82165.8%

GChange in third-party interests in SoftBank
Vision Funds
Other gain
Income before income tax
Income taxes
Net income

194,092
191,259
1,046,971(456,846)
590,125

1,018,741
91,237
292,636(306,198)(13,562)824,649(100,022)(754,335)
150,648(603,687)

424.9%(52.3%)(72.0%)(33.0%) H-

Net income attributable to owners of
the parent

363,569(129,098)(492,667)-

Total comprehensive income

892,161

2,541,205

1,649,044

184.8%

Comprehensive income attributable toowners of the parent

664,724

2,452,050

1,787,326

268.9%

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

The following is an overview of the primary and noteworthy components.
A Net Sales
Net sales increased in the SoftBank segment. In the Arm segment, sales declined on a U.S.-dollar basis but werehigher on a yen basis, reflecting the impact of the yen’s depreciation based on the foreign exchange rate forconversion used to prepare the consolidated financial statements. For details, see “(d) Arm Segment” under “b.
Results by Segment.”
B Gain on Investments at Investment Business of Holding Companies
Investment gain of ¥3,524,655 million was recorded at Investment Business of Holding Companies. Of this, theCompany recorded a gain of ¥4,838,251 million relating to settlement of prepaid forward contracts using Alibaba
shares (including a gain of ¥3,996,668 million from remeasurement of Alibaba shares held upon Alibaba’s

5SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 30, 2022

exclusion from the Company’s associates). On the other hand, the Company recorded an unrealized loss on
valuation of investments of ¥1,170,459 million following a fall in the Alibaba share price from the time of
Alibaba’s exclusion from the Company’s associates up to the second quarter-end. See “(a) Investment Business of
Holding Companies Segment” under “b. Results by Segment” for details.
C Loss on Investments at SoftBank Vision Funds
Investment loss of ¥4,353,542 million was recorded at SoftBank Vision Funds, of which ¥1,018,741 million was
attributable to third-party interests. SVF1 recorded realized gain on investments (net) of ¥3,291 million, mainly due
to the monetization of investments in public portfolio companies, including the full exits of five portfolio
1

companies such as Uber Technologies, Inc. (“Uber”). Meanwhile, SVF1 recorded unrealized valuation losses (net)totaling ¥1,193,476 million for public portfolio companies, reflecting declines in the share prices of a wide range of
portfolio companies. Of the losses, ¥363,856 million were attributable to SenseTime Group, Inc. (“SenseTime”),¥224,541 million to DoorDash, Inc. (“DoorDash”), and ¥108,247 million to GoTo, Inc (“GoTo”). For private
portfolio companies, SVF1 recorded unrealized valuation losses (net) totaling ¥652,316 million due to an overall
decrease in the fair value of a wide range of portfolio companies, mainly reflecting their lower equity values inrecent transactions and weaker performances.
SVF2 recorded realized gain on investments of ¥791 million, mainly as a result of the full exit of KE Holdings
Inc. (“KE Holdings”). Meanwhile, SVF2 recorded unrealized valuation losses (net) totaling ¥2,021,626 million. For
public portfolio companies, the losses were mainly due to share price declines of AutoStore Holdings Ltd.
(“AutoStore”) and WeWork Inc. (“WeWork”). For private portfolio companies, the fair value decreased in a wide
range of investments, reflecting markdowns of those with recent funding rounds and/or weaker performance, as
well as share price declines in market comparable companies. See “(b) SoftBank Vision Funds Segment” under “b.
Results by Segment” for details.
Primarily as a result of B through C, total loss on investments was ¥849,598 million.
D Finance Cost
Interest expenses increased by ¥102,227 million in the Investment Business of Holding Companies segment. This2

mainly reflected increases in interest expenses at SBG resulting from the full amortization of unamortized costassociated with financial liabilities related to the Early Physical Settlement.
E Foreign Exchange Loss
Foreign exchange loss of ¥1,095,426 million (net) was recorded due to the weaker yen, mainly because the U.S.
dollar-denominated liabilities (such as borrowings from subsidiaries and foreign currency-denominated straightbonds) of SBG and fund procurement subsidiaries in Japan exceeded their U.S. dollar-denominated cash and cash
equivalents and loans receivable.
The weaker yen increased net assets of foreign subsidiaries and associates, such as SoftBank Vision Funds,
whose functional currency is not Japanese yen (primarily U.S. dollars). However, this positive impact is notincluded in foreign exchange gains; instead, it is included in the increase in exchange differences from thetranslation of foreign operations of ¥2,647,073 million, which is listed under accumulated other comprehensive
income in equity on the Condensed Interim Consolidated Statement of Financial Position.

6

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

F Loss on Equity Method Investments
3

Loss on equity method investments related to Alibaba was ¥25,394 million, a deterioration of ¥302,667 million
year on year, mainly due to recording investment losses on Alibaba’s investments classified as financial assets at
FVTPL.
Alibaba was previously an equity method associate of the Company; it was excluded from the associates in thesecond quarter. This change reflects the Company’s loss of significant influence over Alibaba as its voting
ownership in the company fell below 20% during the course of the Early Physical Settlement.
G Derivative Gain (Excluding Gain (Loss) on Investments)
Derivative gain of ¥895,229 million was recorded due to a decrease in the Alibaba share price, mainly for the
prepaid forward contracts using Alibaba shares.
Gains and losses arising from derivatives related to investing activities, such as acquisition and sale of shares, areincluded in “Gain (loss) on investments.” For example, this applies to derivative gains and losses arising from longcall options of listed stocks held by asset management subsidiaries. Conversely, those related to 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 andlosses related to prepaid forward contracts using Alibaba shares and T-Mobile US, Inc. (“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 liabilities at settlement are included in “Investment gain
(loss)” as part of “Gain relating to settlement of prepaid forward contracts using Alibaba shares.”
Primarily as a result of A through G, income before income tax was ¥292,636 million, a decrease of ¥754,335
million year on year.
H Income Taxes
Income taxes stood at ¥306,198 million. In addition to income taxes recorded at SoftBank Corp. and Yahoo Japan
Corporation, income taxes of ¥164,757 million were recorded at SoftBank Group Corp., and at subsidiaries
conducting fund procurement using Alibaba shares, and at related intermediate holding companies (both wholly
owned subsidiaries of the Company).
Primarily as a result of A through H, net loss attributable to owners of the parent was ¥129,098 million, adeterioration of ¥492,667 million year on year.

7SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 30, 2022

b. Results by Segment
The Company’s reportable segments are the components of its business activities for which decisions on resource
allocation and assessments of performance are made. From the first quarter, the Latin America Funds segment has
been integrated into the SoftBank Vision Funds segment, following a review of the segment managementclassification after SBGA, the manager of SVF2, began managing LatAm Funds. As of the second quarter-end,
there are four reportable segments: Investment Business of Holding Companies, SoftBank Vision Funds, SoftBank,
and Arm.
The following is a summary of the reportable segments.
Segments
Reportable segments
Investment Businessof Holding
Companies

Main businesses

Core companies·Investment activities by SBG and its
subsidiaries

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

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

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

SoftBank·Consumer business: Provision of mobile
services, sale of mobile devices, andprovision of broadband services to retailcustomers in Japan·Enterprise business: Provision of mobile
communications and solutions services toenterprise customers in Japan·Distribution business: Provision of ICT
services products to enterprise customers
and provision of communication devicerelated products and IoT equipment toretail customers·Yahoo! JAPAN/LINE business: Provisionof Internet advertising and e-commerce
services

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 ofrelated services

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

PayPay Corporation
Fortress Investment Group LLC
Fukuoka SoftBank HAWKS Corp.

Other

*1

Note:
1. Since PayPay Corporation became a subsidiary of SoftBank Corp. and Z Holdings Corporation in October 2022, its operating results
will no longer be included in “Other” and instead will be presented within the SoftBank segment from the three-month period ending
December 31, 2022, with the results retrospectively adjusted and presented for the nine-month period ending December 31, 2022
and for the same period of the previous fiscal year.

8SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 30, 2022(a) Investment Business of Holding Companies Segment
1. Profits totaling ¥5,371.6 billion were recorded as a result of the Early Physical Settlement. Alibaba was
excluded from the associates of the Company as the voting ownership fell below 20% during the courseof the settlement.
Gain on settlement of prepaid forward contracts using Alibaba sharespertaining to the Early Physical Settlement¥584.8 billion

Gain from remeasurement of Alibaba shares held upon exclusion fromassociates¥3,996.7 billion

Derivative gain on prepaid forward contracts that are the subject of the
Early Physical Settlement¥790.1 billion

Total (contribution to segment income)¥5,371.6 billion

Apart from the above, unrealized valuation loss of ¥1,077.1 billion was recorded on Alibaba sharesfollowing a decrease in its share price that occurred after its exclusion from the associates.
2. Segment income was ¥3,262.3 billion, reflecting investment gain of ¥3,524.7 billion and derivative gainof ¥1,041.5 billion including the above gains related to Alibaba shares, which were partially offset byforeign exchange loss of ¥1,100.1 billion.

OVERVIEWThis segment is led by SBG, which conducts investment activities, either directly or through its subsidiaries, as a
strategic investment holding company. The segment consists of SBG, SoftBank Group Capital Limited, SoftBank
Group Japan Corporation (“SBGJ”), asset management subsidiary SB Northstar, and certain other subsidiaries
engaged in investment and financing activities. Gains and losses on investments at Investment Business of Holding
Companies comprise gains and losses on investments held by SBG either directly or through its subsidiaries but do
not include gains and losses on investments pertaining to subsidiaries’ shares, such as dividend income fromsubsidiaries or impairment losses related to the subsidiaries’ shares.
This segment has approximately 120 portfolio companies, including Alibaba, T-Mobile, and Deutsche Telekom
AG (“Deutsche Telekom”), as well as investees of SB Northstar, most of which are investments classified as
financial assets at FVTPL. Investments classified as financial assets at FVTPL are measured at fair value every
quarter, and any change in fair value is recorded in the Consolidated Statement of Profit or Loss as gains and losses
on investments.
Investment in Alibaba
Alibaba was previously an equity method associate of the Company; but was excluded from the associates during
the second quarter. This reflects the Company’s loss of significant influence over Alibaba as its voting ownership in
the company fell below 20% during the course of the Early Physical Settlement.
Upon Alibaba’s exclusion from the Company’s associates, Alibaba shares that were held by the Company wereclassified as financial assets at FVTPL and were remeasured at fair value based on the share price at that time. The
shares are to be measured at fair value quarterly and any change in fair value will be recorded in the Consolidated
Statement of Profit or Loss as gain and loss on investments.
Investment in listed stocks and other instruments by asset management subsidiaries
SB Northstar acquires and sells listed stocks and other instruments and engages in derivative and credit transactions

9

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

related to listed stocks, using surplus funds of SBG. Investment loss related to asset management subsidiaries in the
period was ¥118.9 billion, which brings the cumulative investment loss since inception to ¥865.2 billion. SB
Northstar’s business scale continues to be downsized, and the balance of its shareholdings and other instruments
decreased from ¥315.9 billion as of the previous fiscal year-end to ¥139.3 billion as of the second quarter-end.
SBG indirectly holds 67% and SBG’s Representative Director, Corporate Officer, Chairman & CEO Masayoshi
Son indirectly holds 33% of interests in SB Northstar. Masayoshi Son’s interest is deducted from the gains andlosses on investments at SB Northstar as a non-controlling interest; therefore, 67% of the gains and losses oninvestments impact net income attributable to owners of the parent. If, at the end of the fund life (12 years + 2-year
extension), SB Northstar has any unfunded repayment obligations to SBG, Masayoshi Son will pay his pro rata
share of any such unfunded obligations based upon his relative ownership percentage of SB Northstar.

10

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

FINANCIAL RESULTS(Millions of yen)Six months ended September 30
2021
2022
Gain on investments at Investment Business of
Holding Companies
Gain relating to settlement of prepaid
forward contracts using Alibaba shares
Gain relating to sales of T-Mobile shares
Realized gain (loss) on investments at asset
management subsidiaries
Unrealized loss on valuation of
investments at asset management
subsidiaries
Derivative gain (loss) on investments at asset
management subsidiaries
Realized loss on investments
Unrealized gain (loss) on valuation of investments
Change in valuation for the fiscal year
Reclassified to realized gain (loss)*1
recorded in the past fiscal years
Derivative gain on investments*2
Effect of foreign exchange translation
Other
Selling, general and administrative expenses
Finance cost
Foreign exchange loss
Income (loss) on equity method investments
Derivative gain
(excluding gain (loss) on investments)
Mainly due to prepaid forward contracts using
Alibaba shares
Other gain
Segment income (income before income tax)

Change Change %279,689

3,524,708

3,245,019

-

A

3,149

4,838,251
24,842

4,838,251
21,693688.9%

62,951(54,226)(117,177)-(80,019)(58,803)21,216-76,185(336,667)
462,152
56,617(5,842)(147,666)(1,170,459)(1,158,182)(82,027)
189,001(1,632,611)(1,214,799)-

405,535
68,49911,233
12,206(46,242)(138,412)(89,849)
266,989(12,277)
86,533
12,078(30,662)(240,639)(1,100,143)(23,879)(417,812)
18,034(11,233)(128)
15,580(102,227)(1,010,294)(290,868)

26.3%(1.0%)(33.7%)
73.9% B
- C
- D

623,989
119,398

1,041,501
91,403

417,512(27,995)

66.9% E
(23.4%)

1,015,562

3,262,289

2,246,727

221.2%

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

11SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 30, 2022

Main gains and losses related to prepaid forward contracts using Alibaba shares included in the above table
Gain on investments at Investment Business of
Holding Companies
Gain relating to settlement of prepaid forward
contracts using Alibaba sharesof which, gain from remeasurement of Alibaba
shares held upon its exclusion from theCompany’s associates
Realized loss on investments(recorded for physical settlements conducted after
exclusion from associates)-

3,636,471-

4,838,251-

3,996,668-(124,631)(5,836)(1,077,149)(88,203)625,116

895,229

Unrealized loss on valuation of investments(recorded on share price decline of Alibaba shares that
continued to be held at the second quarter-end after
exclusion from associates)

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

A Gain on investments at Investment Business of Holding Companies: ¥3,524,708 million· Gain relating to settlement of prepaid forward contracts using Alibaba shares of ¥4,838,251 million was recorded
due to the physical settlement of a portion of the contracts. The amount includes a gain of ¥3,996,668 million fromremeasurement of Alibaba shares.
· Gain of ¥24,842 million relating to sales of T-Mobile shares was recorded. This was due to the sale of 21.2 million
T-Mobile shares held by the Company to Deutsche Telekom as Deutsche Telekom exercised a portion of its call
options in April 2022.
· Realized loss of ¥54,226 million and unrealized valuation loss of ¥58,803 million were recorded on investments at
asset management subsidiaries. This was a result of investments in listed stocks and other instruments by SB
Northstar.
· Unrealized loss of ¥1,170,459 million was recorded on valuation of investments. This mainly comprised¥1,077,149 million loss on investments in Alibaba, which was excluded from the Company’s associates and is
now accounted for as a financial asset at FVTPL.
· Derivative gain of ¥86,533 million on investments was recorded, mainly due to a gain of ¥83,022 million recorded
pertaining to the right to acquire T-Mobile shares for no additional consideration if certain conditions are met.
B Finance cost: ¥240,639 million (increase of ¥102,227 million year on year)
2

Interest expenses increased by ¥109,127 million year on year at SBG to ¥238,845 million. This was mainly due tothe full amortization of unamortized costs associated with financial liabilities related to the Early PhysicalSettlement.
C Foreign exchange loss: ¥1,100,143 million
Foreign exchange loss of ¥1,100,143 million (net) was recorded due to the weaker yen, mainly because the U.S.
dollar-denominated liabilities (such as borrowings from subsidiaries and foreign currency-denominated straightbonds) of SBG and fund procurement subsidiaries in Japan exceeded their U.S. dollar-denominated cash and cash
equivalents and loans receivable.

12SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 30, 2022

D Loss on equity method investments: ¥23,879 million (deterioration of ¥290,868 million year on year)
3

Loss on equity method investments related to Alibaba was ¥25,394 million, a deterioration of ¥302,667 million
year on year. This was mainly due to recording investment losses on Alibaba’s investments classified as financial
assets at FVTPL.
Alibaba was previously an equity method associate of the Company; but was excluded from the associates in thesecond quarter. This reflects the Company’s loss of significant influence over Alibaba as its voting ownership in thecompany fell below 20% during the course of the Early Physical Settlement.
E Derivative gain (excluding gain (loss) on investments): ¥1,041,501 million
Derivative gain of ¥895,229 million was recorded due to a decrease in the Alibaba share price, mainly for the
prepaid forward contracts using Alibaba shares.

13SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 30, 2022

Impact of the asset management subsidiaries on Condensed Interim Consolidated Statement of Financial
Position*1

Cash and cash equivalents
Investments from asset management subsidiaries
Derivative financial assets in asset management subsidiaries
Other
Total assets
Derivative financial liabilities in asset management subsidiaries
Other
Total liabilities*2

Investments from Delaware subsidiaries
Equivalent amount of cash investments by SBG in Delaware subsidiaries
Equivalent amount of loans to Delaware subsidiaries held by SBG(the amount entrusted by SBG related to asset management)
Equivalent amount of cash investments by Masayoshi Son in Delaware subsidiaries
Retained earnings
Exchange differences on translating foreign operations
Equity(Millions of yen)
September 30, 2022
11,969139,344
199
8,838
160,350925
32
957
940,856
39,786881,177
19,893 A(871,999) B
90,536
159,393 C

Notes:
1. SB Northstar’s statement of financial position (excluding the impact of investments made by SB Northstar in Special Purpose
Acquisition Companies (“SPACs”) controlled by SBIA US) is presented for reference to show the impact of SB Northstar on theConsolidated 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)
Equivalent amount of cash investments by Masayoshi Son in Delaware subsidiaries*3
Cumulative loss attributable to non-controlling interests
Exchange differences on translating foreign operations
Non-controlling interests (interests of Masayoshi Son)

(Millions of yen)
19,893 A(290,571)
37,076(233,602) D

Note:
3. One-third of B in the above table(Interests in equity (C above))(Millions of yen)
392,995(233,602) DInterests of SBG
Non-controlling interests (interests of Masayoshi Son)
Equity159,393

14

CSoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 30, 2022

Main interest-bearing debt and lease liabilities in this segment
Balance as of September 30,
2022 in Condensed Interim
Consolidated Statement of
Financial Position¥412.1 billion¥5,986.6 billion¥11.4 billion¥209.0 billion

Borrower
SBG

Type
Borrowings
Corporate bonds
Lease liabilities
Commercial paper

Wholly owned subsidiaries*1
conducting fund procurement

Borrowings using Arm shares(asset-backed finance)¥1,215.6 billion

Prepaid forward contracts using Alibaba
shares (floor contracts, collar contracts,and forward contracts)¥2,784.8 billion

Borrowings using SoftBank Corp. shares(margin loan)¥499.4 billion

Prepaid forward contracts using
T-Mobile shares (collar contracts)¥405.4 billion

Collar transactions using Deutsche
Telekom shares¥431.6 billion

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

15

SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 30, 2022(b) SoftBank Vision Funds Segment
1. Gross performance since inception was $13.5 billion gain in SVF1 and $14.6 billion loss in SVF2.

*1

Market environment: The S&P 500 Index down 5.3%, the NASDAQ-100 Technology Sector Index
down 8.4%, and the Thomson Reuters Venture Capital Index down 6.0% from June 30 to September
30, 2022.
SVF1: $102.9 billion in cumulative returns (exit price, etc. + fair value of investments held) on$89.4 billion investments, with $13.5 billion gross gain
· Investment loss was $15.2 billion (¥2,008.3 billion) for the period.
· The fair value of investments held at the second quarter-end decreased by 7.8% from the previous quarter*2
end.
*3- Down 10.3% for public portfolio companies, due mainly to decline in share prices of GoTo, SenseTime,and DiDi, despite a recovery in share prices of Coupang and some others*3- Down 6.4% for private portfolio companies, reflecting markdowns due to their lower equity values inrecent transactions and weaker performances in accordance with private valuation methodologies adopted
SVF2: $35.2 billion in cumulative returns on $49.8 billion investments, with $14.6 billion gross loss
· Investment loss was $14.6 billion (¥1,934.4 billion) for the period.
· The fair value of investments held at the second quarter-end decreased by 12.4% from the previous quarterend.
- Down 29.2% for public portfolio companies, due mainly to decline in share prices of WeWork and
AutoStore- Down 9.8% for private portfolio companies, reflecting markdowns of a wide range of portfolio
companies due to their weaker performances in accordance with private valuation methodologies adopted(As of September 30, 2022; in billions of U.S. dollars)

Since Inception
Investment
*5
*5
cost
Returns

*4

Gain/
loss

SVF1
Exited investments
21.8
39.9
18.1
Investments before exit
67.6
60.6
(7.0)
Reversal of valuation gain/loss recorded in prior periods for exitedinvestments in the fiscal year
Derivatives/Interests/Dividends
0.0
2.4
2.4
Total
89.4
102.9
13.5

SVF2
Exited investments
1.5
2.6
1.1
Investments before exit
48.3
32.7
(15.6)
Reversal of valuation gain/loss recorded in prior periods for exitedinvestments in the fiscal year
Derivatives/Interests/Dividends
(0.1)
(0.1)
Total
49.8
35.2
(14.6)The Fiscal Year
Gain/loss
Gain/loss
Apr - Sep
Jul - Sep
0.2
(5.1)

0.0
(14.0)

(0.1)
(5.0)

(1.2)
(15.2)¥(695.2) billion¥(2,008.3) billion

(0.0)
(4.6)

0.0
(15.0)

0.0
(0.0)
(4.6)

0.1
0.3
(14.6)¥(637.3) billion¥(1,934.4) billion

2. Continued prudent defensive financial management – significantly curtailed investments and continued
to monetize investments under a disciplined approach amid the challenging market environment· Sold investments for a total of $3.60 billion by SVF1 and SVF2 in the period (SVF1: $3.03 billion,
1
SVF2: $0.57 billion). Seven portfolio companies were fully exited, including Uber and KE Holdings.
· Made new and follow-on investments by SVF1 and SVF2 totaling $2.50 billion (SVF1: $0.26 billion, SVF2:
1$2.24 billion), a significant reduction from $29.67 billion in the same period of the previous fiscal year.
· Decided to integrate the operations of SBIA and SoftBank Group International, which are collectively
responsible for the Company’s global investment activities, to improve operational efficiency.

16SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 30, 2022

Notes:
1. Cumulative gross gains and proceeds from realized investments are before deducting third-party interests, taxes, and expenses. The
same applies to the presentation of cumulative investment performance hereinafter.
2. Represents changes in U.S. dollar-based fair values excluding those from investments or exits made during the second quarter.
3. Public portfolio companies are shares traded on stock exchanges or over-the-counter markets. Private portfolio companies are thosethat do not fall under the category of public portfolio companies. The same applies hereinafter.
4. The amount of gains and losses for exited investments in the fiscal year represents the exit price net of the investment cost of suchinvestments. Unrealized valuation gains and losses of such investments recorded in prior years or the first quarter are presented asreversal of valuation gain/loss recorded in prior periods for exited investments in the fiscal year. Therefore, the total amount of gains
and losses for the first quarter (April to June) disclosed in the first quarter and the gains and losses for the second quarter (July to
September) for “investments before exits” may not match the amount of gains and losses for the period (April to September).
5. For derivatives, the investment cost represents the cost of the derivative. Investment returns represent the exit price for exitedinvestments, the fair value for investments before exits, the settlement amount of settled contracts or the fair value of open contracts
for derivatives, and the respective amounts received for interest or dividends.

OVERVIEW
Segment results mainly include the results of the investment and operational activities of SoftBank Vision Fund 1(SVF1), SoftBank Vision Fund 2 (SVF2), and SoftBank Latin America Funds (LatAm Funds), as well as SPACs
sponsored by SBIA US, and SB Opportunity Fund, which supports underrepresented entrepreneurs locatedprimarily in the U.S.
Outline of principal funds in the segment
As of September 30, 2022
SVF1 and SVF2
SVF1 and SVF2 aim to maximize returns from a medium- to long-term perspective through large-scale investments
4

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

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

Investment period
Fund life

SVF1
SoftBank Vision Fund L.P.
98.6
*1

The Company: 33.1
Third-party investors: 65.5
SBIA
(The Company’s wholly owned
U.K. subsidiary)Ended on September 12, 2019
Until November 20, 2029 + Up to two
1-year extensions option by SBIASVF2SoftBank Vision Fund II-2 L.P.
56.0
The Company: 53.4
*2
Third-party investor (MgmtCo): 2.6
SBGA(The Company’s wholly owned
U.K. subsidiary)
To be determined by the manager
Until October 4, 2032 + Up to two 1year extensions option by SBGA

Notes:
1. The Company’s committed capital to SVF1 includes approximately $8.2 billion of an obligation that is satisfied by using Arm shares(all said shares have been contributed) and $2.5 billion to be used for an incentive scheme related to SVF1.
2. A co-investment program has been introduced for SVF2 for the Company’s management. MASA USA LLC (“MgmtCo”), an
investment entity for the co-investment program, participates in this fund. The interest attributable to MgmtCo is treated as a thirdparty interest in the Company’s consolidated financial statements. For details, see “14. Related party transactions regarding a coinvestment program with restricted rights to receive distributions” in “(6) Notes to Condensed Interim Consolidated Financial
Statements” in “2. Condensed Interim Consolidated Financial Statements and Primary Notes.”

17

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

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

SBLA Latin America Fund LLC
7.6

*1

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

Note:
1. A co-investment program has been introduced for LatAm Funds for the Company’s management. MgmtCo participates in this fund.
The interest attributable to MgmtCo is treated as a third-party interest in the Company’s consolidated financial statements. For
details, see “14. Related party transactions regarding a co-investment program with restricted rights to receive distributions” in “(6)Notes to Condensed Interim Consolidated Financial Statements” in “2. Condensed Interim Consolidated Financial Statements andPrimary Notes.”

Financing at SVF
SVF1, SVF2, and LatAm Funds may independently make borrowings that are non-recourse to SBG, for the purposeof leveraging and maintaining liquidity. Types of borrowings include asset-backed finance, which utilizes assets
held to enhance returns and distribute to limited partners, and fund-level facilities, which provide bridge funding by
way of a revolving loan for the period between capital calls and arrivals of funds, thereby allowing a quick
execution of investment after the investment decision is made.
Fair value measurement of investments
SVF1, SVF2, and LatAm Funds calculate the fair value of their investments at each quarter-end in accordance withIFRS 13 Fair Value Measurement and based on the SBIA Global Valuation Policy and the International Private
Equity and Venture Capital Valuation Guidelines (IPEV Guidelines). For public portfolio companies, fair values of
portfolio companies that are traded on stock exchanges are determined using quoted prices, while fair values of
those traded on over-the-counter markets are determined using single or multiple factors such as quoted prices andother observable inputs. For private portfolio companies, one or more valuation methods are used, including themarket approach using figures of market comparable companies, the income approach using estimated future cash
flows, and the recent transactions method using prices of recent funding rounds and similar transactions.

18SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 30, 2022

FINANCIAL RESULTS(Millions of yen)Six months ended September 30
2021
2022
Loss on investments at SoftBank*1
Vision Funds
Loss on investments at SVF1, SVF2,
and LatAm Funds*2

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

ChangeChange %(549,100)(4,312,342)(3,763,242)-(549,799)
853,408(4,316,203)
5,398(3,766,404)(848,010)(99.4%)(1,351,996)(336,134)(4,303,080)(4,200,240)(2,951,084)(3,864,106)-(1,015,862)(102,840)

913,022-

23,174(42,535)(31,850)699(35,005)(10,157)759
36,365(55,645)
3,861(30,983)(35,795)(22,415)
78,900(23,795)
3,162
4,022
(25,638)(96.7%)
452.4%(11.5%)
252.4%

1,424
194,092(2,440)620
1,018,741
9,105

(804)
824,649
11,545(56.5%)
424.9%-(401,186)(3,350,654)(2,949,468)

-

A

B

Notes:
1. Unrealized gains and losses associated with the change in valuation of SoftBank Vision Funds’ investment in shares in Arm andPayPay Corporation, which are subsidiaries of the Company, and dividend income received from such investments are included insegment income of the SoftBank Vision Funds segment as gains and losses on investments at SoftBank Vision Funds, but are
eliminated in consolidation and not included in gains and losses on investments at SoftBank Vision Funds in the Consolidated
Statement of Profit or Loss.
2. Unrealized gains and losses on valuation of investments recorded in previous fiscal years related to the investments realized in thefiscal year are reclassified as realized gains and losses on investments.

Investments and disposals by SVF1 and SVF2

SVF1
SVF2

Investments made during the period
Q1
Q2
YTD
0.06
0.20
0.26
2.11
0.13
2.24

(Billions of U.S. dollars)
Disposals made during the period
Q1
Q2
YTD
2.10
0.93
3.03
0.51
0.06
0.57
5

Note: Investments and disposals by SVF1 and SVF2 include those through share exchanges. Investments include new and follow-ons.

19

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

Segment income
A Loss on investments at SoftBank Vision Funds: ¥4,312,342 million(Millions of yen)

Loss on investments at SVF1
Loss on investments at SVF2
Gain (loss) on investments at LatAm Funds

Six months ended September 30
2021
2022
(687,267) (2,008,251)(55,901) (1,934,361)
193,369(373,591)

Loss on investments at SVF1, SVF2,
and LatAm Funds(549,799)(4,316,203)

Change(1,320,984)(1,878,460)(566,960)

Change %(3,766,404)--

B Change in third-party interests in SVF: ¥1,018,741 million
This indicates the sum of distributions to third-party investors in proportion to their interests in fixed distributions
and performance-based distributions, which are based on the gains and losses on investments at each fund, net of (i)management and performance fees payable to SBIA from SVF1, (ii) management and performance-linked
management fees payable to SBGA from SVF2, (iii) management fees, performance-linked management fees, andperformance fees payable to SBGA from LatAm Funds, and (iv) operating and other expenses of SVF. For details,
see “(2) Third-party interests in SVF” under “4. SoftBank Vision Funds business” in “(6) Notes to Condensed
Interim Consolidated Financial Statements” in “2. Condensed Interim Consolidated Financial Statements andPrimary Notes.”

20

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

Investment performance
As of September 30, 2022
SVF1
(Billions of U.S. dollars)

Total ((1) + (2) + (3) + (4) below)
Cumulative
number ofinvestments
99

Cumulative
investment
cost
89.4

Cumulative
investment
return102.9

Cumulative
*1
gain
13.5

Cumulative Cumulative
number ofinvestment
investments
cost
Effects of share exchanges
(3)
(1.9)
Uber Advanced Technologies Group and Aurora Innovation Inc.
PT Tokopedia and GoTo
Grofers International Pte. Ltd. and Zomato Limited
Effects of dividends in kind(2)
Treasure Data, Inc.
Acetone Limited (Equity interest in Arm China JV)
Net of effects of share exchanges
*2, 3
94
87.5
and dividends in kind

Cumulative
investment
return(1.9)

Cumulative
*1
gain
-

-

-

101.0

13.5

Exit price
9.9
30.0
39.9

Cumulative*1
realized gain
7.9
10.2
18.1

(Reference)(1) Exited investments

Number ofinvestments
21
21Partial exit
*4
Full exit
Total

Investment
cost
2.0
19.8
21.8

Realized gain (loss)
recorded for the fiscal year
Jul – Sep Apr – Sep
0.6
(0.6)
0.2
0.0

*5

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

Public companies
Private companies
Total

Number ofinvestments
22
56
78

Investment
cost
32.3
35.3
67.6

Cumulative
unrealized
valuation gain
*7
Fair value(loss)
21.3(11.0)
39.3
4.0
60.6
(7.0)

Unrealized
valuation gain (loss)
recorded for the fiscal year
Jul – Sep Apr – Sep
(2.4)
(9.1)
(2.7)
(4.9)
(5.1)
(14.0)

Derivative
cost
0.0
0.0

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

Derivative gain (loss)
recorded for the fiscal year
Jul – Sep Apr – Sep-(3) Derivatives

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

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

Total
Notes:* The total and the sum of the breakdown in the table may not match as the amount of each item is rounded to the nearest unit.
1. Before deducting third-party interests, taxes, and expenses
2. For investments in which share exchanges occurred, acquisition costs of new investments and disposal prices (sale prices) ofinvestments initially held are deducted for the purpose of presenting the cumulative net investment performance. Similarly,
investments acquired through dividends in kind from existing portfolio companies are deducted from the investment count.
3. In addition to the public share exchanges above, SVF1 exchanged all shares in two portfolio companies for shares in their affiliated21SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 30, 2022

companies, which are also existing portfolio companies. Acquisition costs and disposal prices (sale prices) of these investments arealso deducted in this section.
4. Includes disposal (sale) through share exchanges.
5. The classification of portfolio companies as public/private is based on their status as of the second quarter-end.
6. Includes DiDi Global Inc., which is traded in the over-the-counter market.
7. For a certain investment that was initially determined to be transferred from the Company to SVF1 but later canceled, any unrealized
valuation gains and losses incurred for the period leading up to the decision to cancel the transfer are not included in thepresentation.

SVF2(Billions of U.S. dollars)

Total ((1) + (2) + (3) + (4) below)
Cumulative
number ofinvestments
273

Cumulative
investment
cost
49.8

Number ofinvestments
3
3

Investment
cost
0.1
1.4
1.5

Cumulative
investment
return35.2

Cumulative*1
loss(14.6)

Exit price
0.0
2.6
2.6

Cumulative
realized gain
*1
(loss)
(0.1)
1.2
1.1

(1) Exited investments

Partial exit
Full exit
Total(2) Investments before exit (investments held at the second quarter-end)*3

Public companies
Private companies
Total

Number ofinvestments
14
256
270

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

*2

Investment
*4
cost
8.2
40.1
48.3

Fair value
3.5
29.2
32.7

Cumulative
unrealized
valuation loss
(4.7)
(10.9)(15.6)

Unrealized
valuation gain (loss)
recorded for the fiscal year
Jul – Sep
Apr – Sep
(1.5)
(5.3)
(3.1)
(9.7)
(4.6)
(15.0)

Derivative
cost-

Fair value/
Cumulative
settlement
price derivative loss
(0.1)
(0.1)
(0.0)
(0.0)
(0.1)
(0.1)

Derivative gain (loss)
recorded for the fiscal year
Jul – Sep
Apr – Sep
0.3
(0.0)
(0.0)
0.3

*4

(3) Derivatives

Unsettled
SettledTotal(4) Interest and dividend income from investments
Interest anddividend
income0.0

Cumulative
income0.0Interest and dividend income
recorded for the fiscal year
Jul – Sep
Apr – Sep
0.0
0.0

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 taxes and expenses
2. The classification of portfolio companies as public/private is based on their status as of the second quarter-end.
3. Includes Zhangmen Education Inc., which is traded in the over-the-counter market.
4. 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.

22SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 30, 2022

Capital deployment
As of September 30, 2022
SVF1
(Billions of U.S. dollars)
Total

The Company

Third-party investors

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

98.6
87.1
32.3
54.8

33.1
29.8
9.0
20.8

65.5
57.3
23.3
34.0

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

11.5

3.3

8.2

Committed capital (A)6Note: The Company’s committed capital to SVF1 includes approximately $8.2 billion of an obligation that is satisfied by using Arm
shares (all said shares have been contributed) and $2.5 billion to be used for an incentive scheme related to SVF1.

SVF2(Billions of U.S. dollars)
Total
Committed capital (A)Drawn capital (B)Remaining committed capital (C) = (A) – (B)

56.0
49.8
6.2

Note: Remaining committed capital includes recallable return of capital.

(Reference: Breakdown of committed capital as of September 30, 2022)
Total committed capital
The Company’s equity commitment to investments outside the scope of the Program
The Company’s preferred equity commitment to SVF2 LLC*1
The Company’s equity commitment to SVF2 LLC
MgmtCo’s equity commitment to SVF2 LLC

56.0
8.5
32.5
12.4
2.6

Notes:*As of the second quarter-end, no capital has been paid by MgmtCo.
1. SVF2 LLC (SVF II Investment Holdings LLC) is a subsidiary of the Company established under SVF2 and indirectly holds
investments subject to the co-investment program.

As of the second quarter-end, total committed capital for SoftBank Latin America Funds is $7.6 billion, withdrawn capital totaling $7.2 billion.
For a complete list of portfolio companies and historical quarterly results of SVF1, SVF2 and LatAm Funds, see the Data Sheets
under “Earnings Results Briefing” on the Company’s website at https://group.softbank/en/ir/presentations/.

23

SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 30, 2022(c) SoftBank Segment
Segment income decreased by 19.3% yoy, mainly due to decreases in income in the consumer business,
which was affected by a fall in mobile service charges, as well as in the Yahoo! JAPAN/LINE andenterprise businesses.
(Millions of yen)Six months ended September 30
2021
2022
Net sales
Segment income (income before income tax)
Depreciation and amortization
Gain (loss) on investments
Finance cost*1

Loss on equity method investments

ChangeChange %2,724,357
532,125(367,752)
20,284(31,104)(28,254)2,809,899
429,281(368,107)(3,450)(31,079)(29,042)

85,542(102,844)(355)(23,734)
25
(788)

3.1%
(19.3%)
0.1%(0.1%)
-

2

1,541

1,539

-

Derivative gain
(excluding gain (loss) on investments)

Note:
1. Includes losses on equity method investments related to PayPay Corporation of ¥7,094 million for the period and ¥13,930 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 with its
financial results included in “Other.” For this reason, losses on equity method investments related to PayPay Corporation recognizedin the SoftBank segment are eliminated in the “Reconciliations” section of the segment information. Since PayPay Corporation
became a subsidiary of SoftBank Corp. and Z Holdings Corporation in October 2022, its operating results will no longer be included
in “Other” and instead will be presented within the SoftBank segment from the three-month period ending December 31, 2022, withthe results retrospectively adjusted and presented for the nine-month period ending December 31, 2022 and for the same period of
the previous fiscal year.

OVERVIEW
Segment results include the results of business activities of SoftBank Corp. mainly in Japan, such as provision ofmobile services and sale of mobile devices, as well as provision of broadband and e-commerce services. Under its
Beyond Carrier strategy, SoftBank Corp. aims to strengthen its earnings base by going beyond the confines of aconventional 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 ¥429,281 million, a decrease of ¥102,844 million (19.3%) year on year. This was mainly due
to decreases in income in the consumer, Yahoo! JAPAN/LINE, and enterprise businesses, as well as investment loss
recorded in the period compared with gain in the same period of the fiscal year.
Income in the consumer business decreased mainly due to a fall in mobile service charges. Income in the Yahoo!
JAPAN/LINE business decreased mainly due to a gain related to the loss of control of YJFX, Inc. recorded in thesame period of the previous fiscal year, following the divestment of the company, as well as an increase inpersonnel expenses associated with a reinforcement of its workforce for further growth, while sales increased
mainly in commerce and advertising-related services. Income in the enterprise business decreased mainly due to thelitigation provision, despite an increase in sales for cloud services and the like as a result of the digitization ofenterprises accelerated. The deterioration in loss on investments was due to a decrease in the fair value of portfolio
companies, primarily those that were invested for the purpose of strengthening solution services.

24

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

NO IMPACT FROM THE CONVERSION OF PAYPAY CORPORATION INTO A SUBSIDIARY OF
SOFTBANK CORP. AND Z HOLDINGS CORPORATIONSoftBank Corp. and Z Holdings Corporation plan to record a gain from remeasurement relating to businesscombination in the three-month period ending December 31, 2022 following the conversion of PayPay Corporation
into their subsidiary. However, since PayPay Corporation has consistently been classified as a consolidated
subsidiary of SBG, the Company will not record such gains.
In conjunction with the conversion of PayPay Corporation to a subsidiary, SoftBank Corp. plans to change theaccounting policy to apply the acquisition method to business combinations under common control involving noncontrolling interests from the three-month period ending December 31, 2022. SoftBank Corp. previously accounted
for transactions under common control based on the carrying amount of the parent company’s assets and liabilities(book-value method or pooling of interests method), and regardless of the actual date of the transaction undercommon control, retrospectively combined the financial statements of the transferred companies as if suchtransactions were executed by SoftBank Corp on the later of the date when the parent obtained control of thetransferred companies prior to the transfer, or the opening balance sheet date of the comparative period as part ofthe consolidated financial statements of SoftBank Corp. However, SoftBank Corp. will change the accounting
policy to apply the acquisition method from the three-month period ending December 31, 2022, and the new
accounting policy will be retrospectively applied to transactions under common control involving non-controllinginterests. Such transactions include the consolidation of Yahoo Japan Corporation (currently Z Holdings
Corporation) in June 2019. With this retroactive application, assets, liabilities, and equity of SoftBank Corp. are
expected to be increased in its consolidated statement of financial position as of March 31, 2022. The company also
expects to record amortization expenses by recognizing identifiable intangible assets pertaining to PayPay
Corporation and Z Holdings Corporation, the latter of which were recognized in conjunction with this change inaccounting policy. Nevertheless, the Company expects no impact from these on its consolidated financial
statements as PayPay Corporation and Z Holdings Corporation have consistently been classified as subsidiaries of
SBG.
For more information on SoftBank Corp.’s financial results and business operations, please refer to its website athttps://www.softbank.jp/en/corp/ir/.

25

SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 30, 2022(d) Arm Segment
1. Arm’s business remains robust, including a half-year record high royalty revenue and strong demand
for technology licenses.
◆ Net sales decreased by 6.1% yoy (U.S. dollar-based) mainly due to very strong license revenue in thesame period of the previous fiscal year. In yen terms, net sales increased by 13.9% due to the weaker
yen exchange rate used for translation in the preparation of the Company’s consolidated financial
statements.
- Technology royalty revenue increased by 22.2% yoy (U.S. dollar-based) due to higher royalty rates insmartphones and more chips deployed in advanced cars.
- Technology non-royalty revenue decreased by 35.8% yoy (U.S. dollar-based). Despite higher-than-normal
non-royalty revenue in the period, revenues were still down compared to the record high revenues
recognized one year ago. The revenues recognized in the same period of the previous fiscal year included
some high-value deals that were signed with large customers in previous periods. Arm continued to see
robust customer demand in the period.
◆ Segment income on a U.S. dollar basis decreased due to lower net sales. In yen terms, segment income
increased by 4.8% due to the weaker yen exchange rate used for translation in the preparation of theCompany’s consolidated financial statements.
2. Arm makes progress in its infrastructure strategy.
Arm announced its next generation processor, Arm Neoverse V2, targeting cloud servers, hyperscale
workloads, and high-performance computing applications.
3. Arm continued its preparations for a potential public offering.
Arm welcomes two new Board members in September 2022, and one new Board member and a new CFO in
November 2022.
(Millions of yen)Six months ended September 30
2021
2022
Net sales
Segment income (income before income tax)

161,355
33,994*1

183,705
35,631

ChangeChange %22,350
1,637

13.9%
4.8%

Note:
1. Segment income included amortization expenses of ¥30,354 million for the period and ¥24,997 million for the same period of theprevious fiscal year. These expenses are related to intangible assets recognized in the purchase price allocation at the time of theacquisition of Arm.

OVERVIEW
Arm’s operations primarily consist of licensing semiconductor intellectual property (IP), including the design ofenergy-efficient microprocessors and associated technologies. Since its acquisition by the Company in 2016, Arm
has accelerated investment in R&D by hiring more engineers. With the expansion of its engineering capability, Armis developing new technologies that may help it maintain or increase its share of the existing markets and expand
into new markets.
Strengthening management
As Arm continues to prepare for a potential public offering, Arm appointed new Board members Karen Dykstra,
former Chief Financial and Administrative Officer of AOL, Inc., Jeff Sine, Co-Founder and Partner of The Raine
Group LLC. in September 2022, and Tony Faddell, Principal at the Build Collective, in November 2022, as well as
Jason Child, former CFO of Splunk Inc., as CFO in November 2022. This is expected to further strengthen thecompany’s management.
26

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

Industry trends and their impact
Semiconductor industry trends can have a significant impact on Arm’s financial results, both positively andnegatively. Industry growth benefits Arm’s technology royalty revenue, which can grow along with industry sales.
Industry growth can also encourage Arm’s customers to increase design activity, creating new opportunities for
Arm to license its latest technologies and thus driving non-royalty revenue (technology licensing revenue andsoftware and services revenue).
The semiconductor industry has grown strongly in the period, compared to the same period of the previous fiscal
year, due to long-term trends such as more products and services 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. However, in recent quarters Arm has started to see industry growth
flatten out sequentially, which may result in slower year-on-year industry growth in the future.
The industry is vulnerable to other external factors, including inventory corrections, trade disputes, and sanctions
against specific companies, as well as the impact of temporary component shortages. If shipments of consumer
electronic devices weaken, it may lead to lower Arm’s technology royalty revenue, and if Arm’s customers facing
reduced revenues choose to delay licensing decisions, it may lead to lower technology non-royalty revenue.
However, it is difficult to anticipate when these events may occur and the impact on the semiconductor industry ingeneral 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 U.S. dollar-based.
(Millions of U.S. dollars)
Six months ended September 30
2021
2022
Technology royalty
Technology non-royalty
Total net sales

Change Change %

749
714

916
459

167
(255)

22.2%
(35.8%)

1,463

1,375

(88)

(6.1%)Net sales decreased by $88 million (6.1%) year on year due to a decrease in technology non-royalty revenue
partially offset by an increase in technology royalty revenue.
Technology royalty revenue
Technology royalty revenue increased by $167 million (22.2%) year on year. Royalty revenues were driven by thestrong shipments of Arm-based 5G high-end smartphones, including some based on Arm’s latest Armv9
architecture, which will typically command a higher royalty fee, deployment of networking equipment into 5G basestations, and Arm’s customers gaining share in multiple markets such as automotive, IoT, and servers. In addition,
Arm’s customers are benefiting from the continuing demand for computer chips enabling prices to increase. As
Arm’s royalty revenue is often based on the price of the chips, Arm is also benefiting from higher chip prices.

27

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

Technology non-royalty revenue
Technology non-royalty revenue decreased by $255 million (35.8%) year on year. This decrease is primarily due toa half-year record high technology non-royalty revenue in the same period of the previous fiscal year, which was
due in part to the timing of revenue related to contracts signed with some large customers who were making major
investments in Arm’s expanded technology portfolio. Arm continued to see robust customer demand due to theavailability of more Arm technology following the accelerations in R&D spending after Arm was acquired by theCompany. Over the past few years, Arm has increased investment in R&D, which has now resulted in a productportfolio 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 servers and PC
chips, smartphones, networking equipment, autonomous systems such as industrial robotics and self-driving
vehicles, and for AI-enabled microcontrollers.
Segment income
Segment income on a U.S. dollar basis declined. The negative impact of lower revenue and fees related topreparations for a public offering was partially offset by improved operational efficiency and a foreign exchange
gain resulting from the weaker British pound against the U.S. dollar. On the other hand, segment income on a yenbasis increased by ¥1,637 million (4.8%) year on year to ¥35,631 million, due to the weaker yen exchange rate used
for translation in the preparation of the Company’s consolidated financial statements.

OPERATIONS
7
Royalty units(Billion)
Six-month period ended June 30
2021
2022
Royalty units as reported by Arm’s licensees

13.9

14.9

Change Change %
1.0

7.2%

Arm’s licensees reported shipments of 14.9 billion Arm-based chips in the six-month period ended June 30, 2022,
an increase of 7.2% year on year.

28

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

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
Main developments

Infrastructure
Opportunity
Main developments

Automotive
Opportunity

Main developments· Arm already has over 95% market share of the main chips in mobile devices and,over time, has been successfully increasing royalties per chip.
· Arm announced its annual update of technology for smartphones in June 2022,
including the Arm Cortex-X3 and Cortex-A715 CPUs, both based on Armv9
technology, and Arm Immortalis-G715 GPU, which brings hardware-based ray
tracing support to mobile devices, delivering more realistic and immersive gaming
experiences.
· Arm has a growing share in networking infrastructure and a nascent share in data
center servers.
· Arm announced adoption of Arm Neoverse-based chips by Google Cloud servers inJuly 2022. Google Cloud customers can now run workloads on the Ampere Altrachip, based on Arm Neoverse N1 CPU. Google joins Alibaba, Amazon, andMicrosoft in deploying server chips based on Arm technology.
· Arm announced in September 2022 Neoverse V2, the latest Arm core targetedat providing world-leading performance for cloud servers, hyperscale
workloads, and high-performance computing applications.
· As vehicles become smarter, they require more computational capability. Arm iswell-positioned to gain market share by providing energy efficiency and Armprocessor technology has already been licensed by most companies that develop
automotive chips.
· Arm announced in July 2022 that it is working with Cruise LLC to scale out theirautonomous driving platform.

IoT
Opportunity

Main developments· 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 in June 2022 the Arm Mali-C55 Image Signal Processor (ISP), its
smallest and most configurable image signal processor designed for IoT devices
such as home security cameras and drones, which is already seeing success withlicensees such as Renesas Electronics Corp.

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

29

SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 30, 2022(e) Other(Millions of yen)Six months ended September 30
2021
2022

ChangeChange %Net sales
Segment income (income before income tax)
Depreciation and amortization
Loss on investments
Finance cost
Income on equity method investments

111,613(16,908)(16,118)(10,667)(7,568)19,486

206,052(23,005)(22,146)(17,463)(8,357)307

94,439(6,097)(6,028)(6,796)(789)(19,179)

84.6%
37.4%
10.4%
(98.4%)

Derivative loss
(excluding gain (loss) on investments)(3,479)(14,362)(10,883)-

Segment loss was ¥23,005 million. A U.K. subsidiary engaged in the renewable energy business recorded a loss
before income tax of ¥13,016 million, mainly due to a decrease in the fair value of one of its investees, and PayPay
Corporation recorded a loss before income tax of ¥11,220 million.
An overview and business results of PayPay Corporation are as follows:
PayPay Corporation, which is engaged in smartphone payment services in Japan, recorded a loss before income taxof ¥11,220 million. This was mainly due to recording expenses associated with marketing campaigns aimed atacquiring users and promoting usage, as well as the retention and expansion of stores where the service is available.
Nonetheless, loss before income tax narrowed year on year as revenues increased, mainly due to an increase inpayment fees following the introduction of payment fees to small and medium-sized merchants in October 2021
and growth in the gross merchandise value of payments. PayPay Corporation’s payment services continued to see
strong growth, with the number of payments for the period reaching 2.38 billion, a 1.4-fold increase year on year,
and the gross merchandise value of payments reaching ¥3.5 trillion, a 1.4-fold increase year on year.
Results of PayPay Corporation included in “Other”(Millions of yen)Six months ended September 30
2021
2022
Net sales
Loss before income tax

24,042(27,824)

53,163(11,220)

ChangeChange %29,121
16,604121.1%-

Note: In the fourth quarter of the previous fiscal year, a lump-sum deduction of ¥6,399 million was made from net sales, including a
portion of marketing costs for stores, which had been recorded as expenses in the first three quarters of the previous fiscal year.
Since no retrospective adjustments have been made to the net sales for the first three quarters of the previous fiscal year, ¥793
million of the abovementioned expenses are included in net sales for the same period of the previous fiscal year.

Since PayPay Corporation became a subsidiary of SoftBank Corp. and Z Holdings Corporation in October 2022, its
operating results will no longer be included in “Other” and instead will be presented within the SoftBank segmentfrom the three-month period ending December 31, 2022, with the results retrospectively adjusted and presented forthe nine-month period ending December 31, 2022, and for the same period of the previous fiscal year. PayPay
Corporation has been consolidated by SBG as a subsidiary since its founding in June 2018 and will continue as
such.

30

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

(2) Overview of Financial Position
1. Status of investment assets◆ Carrying amount of investments from SVF (FVTPL) of ¥12,690.5 billion, a decrease of ¥2,219.1*1billion from the previous fiscal year-end*2- Decrease at SVF1 of ¥1,068.3 billion : The balance decreased by $13.92 billion due to a decrease in the1fair value of investments held at the second quarter-end and by $4.29 billion due to divestments.
1
These were partially offset by an increase of $0.26 billion due to new and follow-on investments.
*2- Decrease at SVF2 of ¥973.6 billion : The balance decreased by $15.29 billion due to a decrease in thefair value of investments held at the second quarter-end and by $0.51 billion due to divestments.
These were partially offset by an increase of $2.24 billion due to new and follow-on investments.
*2- Decrease at LatAm Funds of ¥177.2 billion◆ Carrying amount of investment securities of ¥7,362.6 billion, an increase of ¥4,277.2 billion from theprevious fiscal year-end- Carrying amount of ¥4,484.8 billion was newly recorded for Alibaba shares that continued to be held at
the second quarter-end.
◆ Investments accounted for using the equity method of ¥847.9 billion, a decrease of ¥4,386.6 billion
from the previous fiscal year-end- Consolidated carrying amount of Alibaba of ¥4,572.1 billion decreased due to its exclusion from equity
method associates. Alibaba shares are recorded as “investment securities” under financial assets at
FVTPL, for which investment performances are measured at fair value.
2. Changes in liabilities associated with financing activities◆ Interest-bearing debt of SBG decreased by ¥823.1 billion from the previous fiscal year-end.
◆ Interest-bearing debt of wholly owned subsidiaries conducting fund procurement decreased by¥1,993.0 billion from the previous fiscal year-end.
- Financial liabilities relating to sale of shares by prepaid forward contracts decreased by ¥1,282.7 billion
due to the physical settlement of certain forward contacts using Alibaba shares, despite an increase due tothe procurement of $18.35 billion by concluding prepaid forward contracts during the period.
3. Changes in equity◆ Total equity increased by ¥1,811.8 billion from the previous fiscal year-end.
- ¥129.1 billion net loss attributable to owners of the parent reduced retained earnings.
- ¥523.1 billion worth of shares were repurchased in the period as share repurchasing continued.
- ¥2,647.1 billion increase in exchange differences from the translation of foreign operations due to theweaker yen◆ Ratio of equity attributable to owners of the parent (equity ratio) was 25.7% at the second quarterend, up from 21.0% at the previous fiscal year-end.
Notes:
1. Investments from SVF (FVTPL) do not include their investments in the Company’s subsidiaries or investments that were transferredfrom the Company to the funds and continue to be accounted for using the equity method (and are included in “investments
accounted for using the equity method”) prior to and after the transfer.
2. Includes increases in the carrying amount of investments at SVF1, SVF2, and LatAm Funds due to an 18.3% depreciation of the yen
against the U.S. dollar in the foreign currency exchange rate used for translations at the second quarter-end.

(Millions of yen)March 31, 2022

September 30, 2022

ChangeChange %Total assets
Total liabilities

47,544,670
35,836,908

46,200,567
32,680,958(1,344,103)(3,155,950)(2.8%)(8.8%)

Total equity

11,707,762

13,519,609

1,811,847

15.5%

31

SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 30, 2022(a) Assets(Millions of yen)March 31, 2022

September 30, 2022

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

5,169,001
2,361,149
1,050,446
971,125
142,767
334,101
10,028,589
1,842,749
914,743
4,897,913
2,427,580
330,899

5,886,162
2,515,284
654,252
707,866
176,859
247,409
10,187,832
1,693,795
878,420
5,459,155
2,480,663
357,868

717,161
154,135(396,194) A(263,259) B
34,092(86,692)
159,243(148,954) C

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

5,234,519
14,909,614
8,365,274
5,401,117
1,143,223
3,085,369
1,333,787
2,230,615
163,255
145,038
37,516,081

847,881
12,690,516
7,296,976
4,427,542
965,999
7,362,574
1,659,361
2,257,882
163,791
160,829
36,012,735(4,386,638) E(2,219,098) F(1,068,298)(973,575)(177,224)
4,277,205 G
325,574 H

Total assets

47,544,670

46,200,567(1,344,103)

32

Change(36,323)561,242 D
53,083
26,96927,267536
15,791(1,503,346)

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

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

Main reasons for changes from the previous fiscal year-end

B Other financial assets

At SB Northstar, with the downsizing of the business, restricted cash
decreased by ¥131,474 million, investments from asset management
subsidiaries decreased by ¥93,440 million, and derivative financial assets inasset management subsidiaries decreased by ¥48,267 million.

Non-current assets
C Property, plant and equipment

Derivative financial assets related to prepaid forward contracts using
Alibaba shares decreased by ¥407,543 million, mainly due to the physicalsettlement of a portion of the contracts, despite an increase in the derivative
financial assets due to a fall in the Alibaba share price.

· SoftBank Corp. made a capital investment in telecommunications
equipment.
· The property, plant and equipment of ¥240,322 million of a U.S.
subsidiary engaged in the renewable energy business was excluded
following the company’s exclusion from the scope of consolidation.

D Goodwill

Goodwill of Arm increased by ¥530,893 million due to the weaker yen
against the U.S. dollar.

E Investments accounted forusing the equity method

The consolidated carrying amount of Alibaba decreased by ¥4,572,129
million. The decrease reflects the derecognition of investments in Alibaba
accounted for using the equity method following its exclusion from equity
method associates as the Company’s voting ownership in the company fell
below 20% during the course of the physical settlement of a portion of the
prepaid forward contracts using Alibaba shares from August to September
2022. Alibaba shares held by the Company at the second quarter-end arerecorded as “investment securities.”

33

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

Components
F Investments from SVF(FVTPL)

Main reasons for changes from the previous fiscal year-end· The carrying amount of investments at SVF1 decreased by ¥1,068.3 billion.
This mainly reflected a decrease of $13.92 billion due to a decrease in the fairvalue of investments held at the second quarter-end and a decrease of $4.29
1billion due to divestments. These were partially offset by an increase of1$0.26 billion due to new and follow-on investments.
· The carrying amount of investments at SVF2 decreased by ¥973.6 billion.
This mainly reflected a decrease of $15.29 billion due to a decrease in the fairvalue of investments held at the second quarter-end and a decrease of $0.51
billion due to divestments. These were partially offset by an increase of $2.24
billion due to new and follow-on investments.
· The carrying amount of investments at LatAm Funds decreased by ¥177.2
billion. This mainly reflected a decrease of $2.87 billion due to a decrease in*1
the fair value of portfolio companies held at the second quarter-end and a1decrease of $0.05 billion due to divestments. These were partially offset by1
an increase of $0.25 billion due to new and follow-on investments.
The carrying amount of investments at each fund as of the second quarter-end
also included the increase caused by the foreign exchange rate used fortranslation of 18.3% depreciation of the yen against the U.S. dollar.
For details on the status of investments at SVF1, SVF2, and LatAm Funds,
see “(b) SoftBank Vision Funds Segment” under “b. Results by Segment” in“(1) Overview of Results of Operations.”

G Investment securities· The carrying amount of Alibaba shares that continued to be held at the second
quarter-end of ¥4,484,758 million ($30,970 million) was newly recorded.
· The carrying amount of T-Mobile shares decreased by ¥184,323 million($2,484 million) (balance at the second quarter-end: ¥772,733 million ($5,336
million)). This mainly reflected the sale of 21.2 million T-Mobile shares heldby the Company to Deutsche Telekom following its partial exercise of call
options for the shares.
· The carrying amount of Deutsche Telekom shares increased by ¥40,901*2
million (decreased in U.S. dollar terms by $373 million ) (balance at thesecond quarter-end: ¥558,861 million ($3,859 million)).
The carrying amount of T-Mobile shares and Deutsche Telekom shares as ofthe second quarter-end also included the increase caused by the foreignexchange rate used for translation of 18.3% depreciation of the yen against the
U.S. dollar.
The carrying amount of investments from LatAm Funds is now included ininvestments from SVF (FVTPL), following the integration of the Latin
America Funds segment into the SoftBank Vision Funds segment in the firstquarter. For details, see “1. Changes in presentation” under “(6) Notes toCondensed Interim Consolidated Financial Statements” in “2. Condensed
Interim Consolidated Financial Statements and Primary Notes.”

34

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

Components
H Derivative financial assets

Main reasons for changes from the previous fiscal year-end· The fair value of the contingent consideration related to T-Mobile shares
increased by ¥200,587 million (balance at the second quarter-end: ¥792,015
million).
· Derivative financial assets increased by ¥82,686 million, mainly due to thenew prepaid forward contracts using Alibaba shares and a fall in the Alibaba
share price, despite the physical settlement of a portion of the prepaid forward
contracts.

Notes:
1. Includes the impact from the weaker local currencies against the U.S. dollar.
2. Includes the impact from the weaker euro against the U.S. dollar.

(Reference) Cash and cash equivalents by entity
Consolidated cash and cash equivalents increased by ¥717.2 billion to ¥5,886.2 billion from the previous fiscal
year-end. Of this, cash and cash equivalents of SBG increased by ¥756.6 billion to ¥3,259.2 billion. For details, see“(3) Overview of Cash Flows.”(Millions of yen)March 31, 2022

September 30, 2022

Change2,569,355
2,502,626

3,283,773
3,259,238

714,418
756,61226,27140,45812,566
11,969(13,705)(28,489)

47,754150,462
1,890
24,34028,57019,468
1,955
31,716(19,184)(130,994)
65
7,376

318,661
383,093845,038
828,408

254,345628,137
833,869
804,329(64,316)
245,044(11,169)(24,079)

5,169,001

5,886,162

717,161

SBG and wholly owned subsidiaries
conducting fund procurement, etc.
SBG
Wholly owned subsidiaries conducting fundprocurement
SB Northstar
SoftBank Vision Funds segment
SVF1
SVF2
LatAm Funds
SBIA, SBGA, SBLA Advisers Corp.
SoftBank segment
SoftBank Corp.
*1

Z Holdings Corporation*2
OthersOthers
Total

Notes:
1. Includes Yahoo Japan Corporation and LINE Corporation.
2. Includes cash and cash equivalents of ¥332,382 million from PayPay Bank Corporation at the second quarter-end.

35

SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 30, 2022(b) Liabilities(Millions of yen)March 31, 2022 September 30, 2022

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

7,328,862
240,241
1,331,385
1,968,864
119,592554,814
183,388
34,056620,260
12,381,462
14,128,570
625,9075,640,498
174,003
129,849
107,9612,436,034
212,624
23,455,446

4,394,449
215,500
1,387,274
1,900,666
80,979509,817
365,274
58,967554,918
9,467,844
14,622,723
627,319
5,186,353
58,00359,334
177,163
2,218,778
263,441
23,213,114(2,934,413)(24,741)
55,889(68,198)(38,613)(44,997)
181,886 A
24,911(65,342)(2,913,618)
494,153
1,412(454,145)(116,000)(70,515)
69,202(217,256) B
50,817(242,332)

Total liabilities

35,836,908

32,680,958(3,155,950)

Reasons for changes by primary component
Components
Main reasons for changes from the previous fiscal year-end*See “(Reference)” on the following page for a breakdown of interest-bearing debt.
Current liabilities
A Income taxes payable
Income taxes payable of ¥203,744 million were recorded at a wholly owned
subsidiary mainly due to the realization of derivative gain relating to the
Early Physical Settlement.
Non-current liabilities
B Deferred tax liabilities

Deferred tax liabilities related to prepaid forward contracts using Alibaba
shares decreased due to a decrease of derivative financial assets andderivative financial liabilities, respectively.

36

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

(Reference) Interest-bearing debt and lease liabilities (total of current liabilities and non-current liabilities)
March 31, 2022

September 30, 2022

(Millions of yen)
Change14,869,325
7,442,237
1,255,116
5,918,265
12,056
256,800

12,019,649
6,619,122
412,131
5,986,601
11,390209,000(2,849,676)(823,115)(842,985) A
68,336 B(666)(47,800)

7,393,573
2,857,000

5,400,527
2,146,633(1,993,046)(710,367) C

4,536,573
33,51533,515

3,253,894-(1,282,679) D(33,515)(33,515)

336,535
336,535
731,540
731,540
9,179
9,179
759
759

645,621645,621835,528
835,528
1,145
1,145

309,086
309,086 E
103,988
103,988 E(9,179)(9,179)386
386

4,236,453
3,085,954
469,252
559,846
121,401
1,170,856
481,678
603,977
35,20150,000592,116

4,183,524
3,183,804
469,312529,407
1,001
1,311,445
593,623
603,81364,00950,000640,029(52,929)97,85060(30,439)(120,400)
140,589
111,945(164)
28,80847,913286,988
89,829138,086
84,964(148,902)(4,865)22,323,580

19,859,991(2,463,589)

SBG and wholly owned subsidiaries
conducting fund procurement, etc.
SBG
Borrowings
Corporate bonds
Lease liabilities
Commercial paper
Wholly owned subsidiaries conducting
fund procurement*1

Borrowings
Financial liabilities relating to sale of sharesby prepaid forward contracts
SB Northstar
Borrowings
SoftBank Vision Funds segment
SVF1
Borrowings
SVF2
Borrowings
LatAm Funds
Borrowings
SBIA, SBLA Advisers Corp.
Lease liabilities
SoftBank segment
SoftBank Corp.
Borrowings
Corporate bonds
Lease liabilities
Commercial paper*2

Z Holdings Corporation
Borrowings
Corporate bonds
Lease liabilities
Commercial paper
Other
OthersOther interest-bearing debt
Lease liabilities
Total

Notes:
1. The interest-bearing debt of wholly owned subsidiaries engaged in fund procurement is non-recourse to SBG.
2. Includes Yahoo Japan Corporation and LINE Corporation.

37

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

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

Details

SBG and wholly owned subsidiaries conducting fund procurement, etc.
SBG
A Borrowings· Borrowings of $4.50 billion made using commitment lines were repaid in the firstquarter.
· The entire ¥325.2 billion of senior loans were repaid in the second quarter. This included¥292.7 billion repaid before maturity.
B Corporate bonds· Foreign currency-denominated straight bonds with face values of $0.27 billion and €0.22
billion were repurchased in the first quarter.
· Foreign currency-denominated straight bonds with face values of $0.51 billion and €0.19
billion were redeemed upon maturity in the second quarter.
· The carrying amount of foreign currency-denominated straight bonds increased due to an
18.3% depreciation of the yen against the U.S. dollar at the second quarter-end in theforeign currency exchange rate used for translations.
Wholly owned subsidiaries conducting fund procurement
C Borrowings
Through Alibaba shares· Borrowings of $6.0 billion made through a margin loan were repaid in full in the second
quarter. This resulted in no borrowings outstanding at the second quarter-end.
Through Arm shares· $0.50 billion (net) was borrowed through asset-backed finance in the first quarter.
Through T-Mobile shares· Borrowings of $2.06 billion made through a margin loan in the previous fiscal year were
repaid during the period. This resulted in no borrowings outstanding at the second
quarter-end.
D Financial liabilities
relating to sale ofshares by prepaid
forward contracts

Through Alibaba shares· $10.49 billion was raised in the first quarter by concluding prepaid forward contracts(forward contracts).
· Financial liabilities relating to sale of shares by prepaid forward contracts of ¥604,888
million ($4.94 billion) were derecognized due to the physical settlement of a portion of
the prepaid forward contracts in the first quarter.
· Financial liabilities relating to sale of shares by prepaid forward contracts of ¥3,958,469
million ($28.57 billion) were derecognized due to the physical settlement of a portion of
the prepaid forward contracts in the second quarter. This included liabilities of¥1,862,409 million ($13.47 billion) that had been recorded upon the conclusion of thecontracts during the period.
· After the above settlement, $1.09 billion was newly raised in the second quarter by
concluding prepaid forward contracts (forward contracts).
For details, see “(2) Transactions for sale of Alibaba shares by prepaid forward
contracts” under “5. Interest-bearing debt” in “(6) Notes to Condensed Interim
Consolidated Financial Statements” in “2. Condensed Interim Consolidated Financial
Statements and Primary Notes.”*3

SoftBank Vision Funds segment
SVF1 and SVF2
E Borrowings· Borrowings made through asset-backed finance increased by $1.71 billion at SVF1 anddecreased by $0.21 billion at SVF2.
· The balance of the borrowings increased due to the foreign exchange rate used fortranslations at the second quarter-end having an 18.3% depreciation of the yen against
the U.S. dollar.
Note:
3. For details of borrowings at SVF1, SVF2, and LatAm Funds, see “Financing at SVF” under “OVERVIEW” in “(b) SoftBank Vision
Funds Segment” in “b. Results by Segment” in “(1) Overview of Results of Operations” in “1. Results of Operations.”

38SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 30, 2022(c) Equity(Millions of yen)March 31, 2022

September 30, 2022

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

238,772
2,634,574
496,876
4,515,704(406,410)
2,496,158

238,772
2,653,838
496,876
4,331,635(924,686)
5,075,372

19,264(184,069) A(518,276) B
2,579,214 C

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

9,975,674
1,732,088

11,871,807
1,647,802

1,896,133(84,286)

Total equity

11,707,762

13,519,609

1,811,847

Reasons for changes by primary component
Components

Main reasons for changes from the previous fiscal year-end

A Retained earnings

Net loss attributable to owners of the parent of ¥129,098 million was recorded.

B Treasury stock

SBG acquired 97,806,700 of its own shares for ¥523,078 million in the six-month
period ended September 30, 2022 in accordance with a Board resolution on
November 8, 2021 to repurchase up to ¥1 trillion of its own shares.

C Accumulated othercomprehensive income

Exchange differences from the translation of foreign operations, which arose fromtranslating foreign subsidiaries and associates into yen, increased by ¥2,647,073
million mainly due to the weaker yen against the U.S. dollar, despite a decrease of¥314,356 million due to the exclusion of Alibaba from equity method associates.

39SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 30, 2022

(3) Overview of Cash Flows
1. Cash flows from investing activities◆ New investments at SVF2 were significantly curtailed, while divestments progressed mainly at SVF1
and in T-Mobile shares.
- Payments for acquisition of investments by SVF: ¥336.7 billion- Proceeds from sales of investments by SVF: ¥454.4 billion- Proceeds from sales/redemption of investments: ¥521.0 billion,of which ¥309.7 billion was from sale of T-Mobile shares◆ Outlays of ¥342.7 billion for purchase of property, plant and equipment and intangible assets due tocapital expenditure mainly at SoftBank Corp.
◆ The above resulted in net cash inflow of ¥271.3 billion from investing activities (compared to net cash
outflow of ¥1,956.7 billion in the same period of the previous fiscal year).
2. Cash flows from financing activities◆ Net cash outflow of ¥578.3 billion from financing activities. Funded through continued asset-backed
finance, the Company made multiple debt repayments in the period, including repayments of marginloans. Share repurchases and distribution/repayments to third-party investors of SVF also continued,
as well as dividend payouts.
- Proceeds from interest-bearing debt: ¥4,597.5 billion· Proceeds at wholly owned subsidiaries conducting fund procurement: ¥2,624.1 billion(Procured $18.35 billion through prepaid forward contracts using Alibaba shares, $1.40 billion throughasset-backed finance using Arm shares)· Main proceeds at SVF: ¥580.7 billion(SVF1 procured $4.50 billion through asset-backed finance)- Payments for interest-bearing debt: ¥3,955.9 billion· Main outlays for repayments at SBG: ¥1,119.1 billion(for repayment of ¥793.9 billion in short-term borrowings and full repayment of ¥325.2 billion in seniorloans)· Outlays for repayments at wholly owned subsidiaries conducting fund procurement: ¥1,188.5 billion(for full repayment of $6.0 billion in a margin loan borrowed through Alibaba shares, repayment of$2.06 billion in a margin loan borrowed through T-Mobile shares in the previous fiscal year, andrepayment of $0.90 billion in borrowings in asset-backed finance made through Arm shares)· Main outlays for repayments at SVF: ¥386.4 billion(for repayment of borrowings totaling $2.99 billion at SVF1 and SVF2 made through asset-backed
finance)- Repurchase of treasury stock of ¥523.1 billion- Distribution and repayments to third-party investors at SVF of ¥347.7 billion- Payments of ¥198.5 billion for dividends at SBG and for dividends to non-controlling interests in
subsidiaries such as SoftBank Corp.
3. Balance of cash and cash equivalents at the second quarter-end and its changes during the period◆ The balance of cash and cash equivalents stood at ¥5,886.2 billion at the second quarter-end, anincrease of ¥717.2 billion from the previous fiscal year-end, due to cash flows from operating,investing, and financing activities, as well as the effect of exchange rate changes on cash and cash
equivalents of ¥468.7 billion.

SIGNIFICANT NON-CASH TRANSACTIONSThe Company settled a portion of the prepaid forward contracts using Alibaba shares in physical form in the period.
This was a non-cash transaction and had no impact on the consolidated cash flows. For details, see “(3) Significant
non-cash transactions” under “13. Supplemental information to the condensed interim consolidated statement ofcash flows” in “2. Condensed Interim Consolidated Financial Statements and Primary Notes.”

40

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

(Millions of yen)Six months ended September 30
2021
2022
Cash flows from operating activities
Cash flows from investing activities
Cash flows from financing activities
Effect of exchange rate changes on cash andcash equivalents
Increase in cash and cash equivalents
Cash and cash equivalents at the beginningof the period
Cash and cash equivalents at the end of theperiodChange2,078,239(1,956,685)
254,432

555,520271,294(578,328)(1,522,719)
2,227,979(832,760)

54,659430,645468,675
717,161

414,016
286,516

4,662,725

5,169,001

506,276

5,093,370

5,886,162

792,792(a) Cash Flows from Operating Activities
Cash flows from operating activities resulted in a net inflow of ¥555,520 million, a ¥1,522,719 million decrease
year on year. This was mainly due to a decrease in cash inflows from sales of investments in conjunction with thedownsizing of the business of SB Northstar, among others, from ¥1,768,429 million to ¥93,922 million, while theamount of income taxes paid decreased from ¥693,260 million to ¥254,761 million. In the same period of theprevious fiscal year, the Company recorded payment of corporate taxes on taxable income at SBGJ, which included
gains on the sale of SoftBank Corp. shares in the fiscal year ended March 31, 2021, as well as payment ofwithholding income tax on dividends from SBGJ to SBG. Such withholding income taxes were refunded within thesame period of the previous fiscal year.
(b) Cash Flows from Investing Activities
Primary components
Components
Proceeds from sales/redemptionof investments¥521,036 million

Primary details· In the first quarter, the Company sold 21.2 million T-Mobile shares for¥309,696 million ($2.40 billion) to Deutsche Telekom due to Deutsche
Telekom’s partial exercise of its call options for the shares.
· In the second quarter, the Company sold its SoFi Technologies, Inc. sharesfor ¥90,823 million ($0.65 billion).

Payments for acquisition of
investments by SVF¥(336,731) million· SVF2 invested ¥298,243 million ($2.30 billion) in total.
· LatAm Funds invested ¥31,391 million ($0.24 billion) in total.
· SVF1 invested ¥7,097 million ($0.06 billion) in total.

Proceeds from sales of investments · SVF1 sold all of its shares in Uber and others, as well as portions ofby SVF
multiple investments, for ¥371,165 million ($2.82 billion).
¥454,386 million· SVF2 sold all of its shares in KE Holdings and others, as well as portionsof multiple investments, for ¥82,766 million ($0.64 billion).
Purchase of property, plant andequipment, and intangible assets¥(342,658) million

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

41

SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 30, 2022(c) Cash Flows from Financing Activities
Primary components
Components
Proceeds in short-term interestbearing debt, net*1¥10,207 million(Proceeds and payments for interest-

Primary details· Short-term borrowings increased by ¥99,194 million (net) at Z Holdings
Corporation and its subsidiaries.
· SBG redeemed commercial paper worth ¥64,300 million (net).
· Short-term borrowings at SB Northstar decreased by ¥35,634 million (net).

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

Proceeds from interest-bearing debt (total of A through C below)¥4,597,463 million
A Proceeds from borrowings · SBG made short-term borrowings of ¥256,940 million.
*2· Wholly owned subsidiaries conducting fund procurement borrowed¥2,093,970 million¥180,656 million ($1.40 billion) through asset-backed finance using
Arm shares.
· SVF1 borrowed ¥580,680 million ($4.50 billion) through asset-backed
finance.
· SoftBank Corp. procured ¥570,755 million mainly through thesecuritization of installment sales receivables and sale-and-leaseback
transactions. The company also issued commercial paper for ¥157,000
million.
B Proceeds from issuance of Z Holdings Corporation issued domestic straight bonds totaling ¥60,000
corporate bonds
million.
¥60,000 million
C Proceeds fromprocurement by prepaid
forward contracts using
shares¥2,443,493 million

Wholly owned subsidiaries conducting fund procurement raised a total of$18.35 billion through prepaid forward contracts (forward contracts) using
Alibaba shares.

42SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 30, 2022

Components
Primary details
Repayment of interest-bearing debt¥(3,955,916) million
Repayment of borrowings*2¥(3,751,029) million· SBG repaid short-term borrowings of ¥793,891 million and repaid entire
senior loans of ¥325,204 million, which included ¥292,683 million repaid
before maturity.
· Wholly owned subsidiaries conducting fund procurement repaid
borrowings as follows:- Repaid in full ¥797,820 million ($6.0 billion) in a margin loan borrowed
through Alibaba shares- Repaid ¥274,538 million ($2.06 billion) in a margin loan borrowed
through T-Mobile shares in the previous fiscal year
- Repaid ¥116,136 million ($0.90 billion) in borrowings made throughasset-backed finance using Arm shares· SVF1 and SVF2 repaid ¥357,469 million ($2.77 billion) and ¥28,904
million ($0.22 billion), respectively, in borrowings made through assetbacked finance.
· SoftBank Corp. repaid ¥477,722 million in borrowings made mainly
through the securitization of installment sales receivables and sale-andleaseback transactions, and redeemed ¥277,400 million in commercial
paper.

Redemption of corporate
bonds¥(202,461) million· SBG repurchased foreign currency-denominated straight bonds with facevalues totaling $0.27 billion and €0.22 billion in the first quarter. SBG also
redeemed foreign currency-denominated straight bonds with face values of$0.51 billion and €0.19 billion upon maturity in the second quarter.
· Z Holdings Corporation redeemed domestic straight bonds of ¥60,000
million upon maturity.

Distribution/repayment from
SVF to third-party investors¥(347,747) million

SVF1 made distributions to third-party investors.

Purchase of treasury stock¥(523,083) million

SBG repurchased 97,806,700 of its own shares for ¥523,078 million in the
period in accordance with a Board resolution on November 8, 2021 torepurchase up to ¥1 trillion of its own shares.

Cash dividends paid¥(36,178) million

SBG paid dividends.

Cash dividends paid to
non-controlling interests¥(162,307) million

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

Notes:
1. “(Repayment) proceeds in short-term interest-bearing debt, net” represents cash flows from financing activities that meet therequirement of “Reporting cash flows on a net basis” under IFRSs.
2. “Proceeds from borrowings” and “repayment of borrowings” include proceeds of ¥693,578 million and outlays of ¥1,430,174
million related to borrowings with a contracted term of one year or less.

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

43

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

Notes to “1. Overview of Results of Operations”
1

2
3

4
5
6
7

Includes share exchanges. During the second quarter, SVF1 sold its stake in Grofers International Pte. Ltd. to Zomato Limited
in exchange for shares in Zomato Limited as consideration, and LatAm Funds exchanged its shares in Yaydoo, Inc. for sharesin PayStand Inc. These share exchanges are treated as full exits (entire sale) from investments and acquisition of new
investments, with the sale price and acquisition cost being recorded in gross, respectively, and with the difference between theacquisition cost of shares initially held and sale price (acquisition cost of the exchanged shares) being recorded as realized
gain and loss on investments.
Interest expenses of SBG include interest expenses of its wholly owned subsidiaries conducting fund procurement.
The Company applies the equity method to Alibaba’s consolidated financial statements for a reporting period staggered bythree months in the past because it is impractical to align reporting periods with Alibaba due to factors such as contracts withthe company. Necessary adjustments are made to reflect significant transactions and events announced by Alibaba during thestaggered three-month period.
Private companies valued at over $1 billion at the time of investment
After deducting transaction fees, etc.
Drawn capital of SVF1 excludes the amount repaid to limited partners due to investment plan changes and other reasons after
the capital was drawn.
This analysis is based on the actual shipments of royalty units (chips incorporating Arm technology) by Arm licensees for six
months ended June 30, 2022, 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 fiscal year is based on chips shipped for six
months ended June 30, 2022. In contrast, royalty revenues are accrued in the same quarter the chips are shipped based on
estimates. In the fourth quarter of the previous fiscal year, previously announced royalty unit data for nine months ended
September 30, 2021, has been restated based on information received by Arm from its licensees.

44SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 30, 2022

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

Definition

SoftBank Group Corp.

SoftBank Group Corp. (stand-alone basis)

The Company

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

SB Northstar LP

SVF1

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

SVF2

SoftBank Vision Fund II-2 L.P.

SVF2 LLC

SVF II Investment Holdings LLC

LatAm Funds

SBLA Latin America Fund LLC

SLA LLCSLA Holdco II LLC

SVF

SVF1, SVF2 and LatAm Funds

SBIA

SB Investment Advisers (UK) Limited

SBGA

SB Global Advisers Limited

SBLA

SBLA Advisers Corp.

Arm

Arm Limited

Fortress

Fortress Investment Group LLC

SprintSprint Corporation

Alibaba

Alibaba Group Holding Limited

WeWork

WeWork Inc.

MgmtCoMASA USA LLC

45

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

From the three-month period ended June 30, 2022, the accounts of the condensed interim consolidated financial
statements have been changed as follows:
Condensed Interim Consolidated Statement of Financial Position
Previous

Current

Investments from SVF1 and SVF2 accounted for using
Investments from SVF (FVTPL)FVTPLThird-party interests in SVF1 and SVF2

Third-party interests in SVF

Condensed Interim Consolidated Statement of Profit or Loss
Previous

Current

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

Gain (loss) on investments at SoftBank Vision Funds

Change in third-party interests in SVF1 and SVF2

Change in third-party interests in SVF

Condensed Interim Consolidated Statement of Cash Flows
Previous

Current(Gain) loss on investments at SVF1, SVF2, and others(Gain) loss on investments at SoftBank Vision Funds

Change in third-party interests in SVF1 and SVF2

Change in third-party interests in SVF

Payments for acquisition of investments by SVF1 andSVF2Payments for acquisition of investments by SVF

Proceeds from sales of investments by SVF1 and
SVF2Proceeds from sales of investments by SVF

Contributions into SVF1 from third-party investors

Contributions into SVF from third-party investors

Distribution/repayment from SVF1 to third-party
investors

Distribution/repayment from SVF to third-party
investors

46

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

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

As ofMarch 31, 2022

As of
September 30, 2022

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

5,169,001
2,361,149
1,050,446
971,125
142,767
334,101
10,028,589

5,886,162
2,515,284
654,252
707,866
176,859
247,409
10,187,832

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

1,842,749
914,743
4,897,913
2,427,580
330,899
5,234,519
14,909,614
3,085,369
1,333,787
2,230,615
163,255
145,038
37,516,081
47,544,670

1,693,795
878,420
5,459,155
2,480,663
357,868
847,881
12,690,516
7,362,574
1,659,361
2,257,882
163,791
160,829
36,012,735
46,200,567

47

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

(Millions of yen)

As ofMarch 31, 2022

As of
September 30, 2022

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

7,328,862
240,241
1,331,385
1,968,864
119,592554,814
183,388
34,056620,260
12,381,462

4,394,449
215,500
1,387,274
1,900,666
80,979509,817
365,274
58,967554,918
9,467,844

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

14,128,570
625,9075,640,498
174,003
129,849
107,9612,436,034
212,624
23,455,446
35,836,908

14,622,723
627,319
5,186,353
58,00359,334
177,163
2,218,778
263,441
23,213,114
32,680,958

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

238,772
2,634,574
496,876
4,515,704(406,410)
2,496,158
9,975,674

238,772
2,653,838
496,876
4,331,635(924,686)
5,075,372
11,871,807

Non-controlling interests
Total equity
Total liabilities and equity

1,732,088
11,707,762
47,544,670

1,647,802
13,519,609
46,200,567

48

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

(2) Condensed Interim Consolidated Statement of Profit or Loss and Condensed Interim Consolidated
Statement of Comprehensive Income
For the six-month period ended September 30
Condensed Interim Consolidated Statement of Profit or Loss
(Millions of yen)Six-month period ended
September 30, 2021

Six-month period ended
September 30, 2022

Net sales
Cost of sales
Gross profit
Gain on investments
Gain on investments at Investment Business of
Holding Companies
Loss on investments at SoftBank Vision Funds
Gain (loss) on other investments
Total gain on investments

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

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

279,930

3,524,655(684,793)
9,628(395,235)(4,353,542)(20,711)(849,598)

Selling, general and administrative expenses
Finance cost
Foreign exchange loss
Income (loss) on equity method investments
Derivative gain (excluding gain (loss) on
investments)
Change in third-party interests in SVF
Other gain
Income before income tax
Income taxes
Net income(1,186,672)(185,599)(92,197)
265,331(1,254,340)(314,217)(1,095,426)(54,870)

620,959

1,029,780

194,092
191,259
1,046,971(456,846)
590,125

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

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

363,569
226,556
590,125(129,098)
115,536(13,562)

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

202.46
195.62(93.65)(95.14)49

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

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

Net income
Other comprehensive income, net of tax
Items that will not be reclassified to profit or loss
Equity financial assets at FVTOCI
Total items that will not be reclassified to profit orloss
Items that may be reclassified subsequently to
profit or loss
Debt financial assets at FVTOCI
Cash flow hedges
Exchange differences on translating foreign
operations
Share of other comprehensive income ofassociates
Total items that may be reclassified subsequently to
profit or loss
Total other comprehensive income, net of tax
Total comprehensive income
Total comprehensive income attributable to
Owners of the parent
Non-controlling interests
Total comprehensive income50

Six-month period ended
September 30, 2021

Six-month period ended
September 30, 2022

590,125(13,562)

12,76516,033

12,76516,033

200
3,501

(936)
(72,777)

303,164

2,511,285(17,594)

101,162

289,2712,538,734

302,036
892,1612,554,767
2,541,205

664,724
227,437
892,161

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

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

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

Three-month period ended
September 30, 2022

1,504,370(681,308)
823,062

1,610,447(772,909)
837,538(461,597)

3,413,432(1,192,096)(4,610)(1,658,303)(1,434,412)
5,822
1,984,842(593,242)(102,800)(77,323)
214,951(627,827)(200,078)(275,457)
103,500

732,495

1,289,030

328,643
87,010(245,507)(96,857)(342,364)

387,374
86,1693,585,091(502,332)
3,082,759

Net income attributable to
Owners of the parent
Non-controlling interests
Net income(397,940)
55,576(342,364)

3,033,602
49,157
3,082,759

Earnings per share
Basic earnings per share (Yen)
Diluted earnings per share (Yen)(236.86)(241.19)

1,915.60
1,912.05

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

51

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

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

Three-month period ended
September 30, 2022

(342,364)

3,082,759

493

6,540

493

6,540

(137)
303

(432)
(38,728)

256,317418,301(18,851)

115,917

237,632

495,058

238,125(104,239)

501,598
3,584,357(158,371)
54,132(104,239)

3,546,846
37,511
3,584,357

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

52SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 30, 2022

(3) Condensed Interim Consolidated Statement of Changes in Equity
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
incomeSubtotal

238,7722,618,504

496,876

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

338,329

10,212,826

Comprehensive income
Net income
Other comprehensive income

-

-

-

363,569--

301,422363,569
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)---(2,475,817)-

2,475,817
-

-

-

-

(2,358)

-

-

-

-

(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

53

SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 30, 2022
(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(267)

363,569

226,556

590,125

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

-

(11)

-

(11)

-

(453)

6,720

6,267

-

-

(842)

(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

54

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

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

Equity attributable to owners of the parent

As of April 1, 2022

Commonstock

Capitalsurplus

Other equity
instruments

Retainedearnings

Treasurystock

Accumulated
othercomprehensive
incomeTotal

238,772

2,634,574

496,876

4,515,704(406,410)

2,496,158

9,975,674

Comprehensive income
Net income
Other comprehensive income

-

-

-

(129,098)--

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

Total comprehensive income

-

-

-

(129,098)-

2,581,148

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

-

-

-

1,934

-

(1,934)

-

-

-

-

(953)

(518,276)-(519,229)

-

-

-

-

-

-

-

-

3,461

-

-

-

-

3,461

-

(5,845)

-

-

-

-

(5,845)-

21,223----

21,223

-

425

-

-

-

-

425

-

-

-

-

-

-

-

-

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

238,772

2,653,838

496,876

4,331,635(924,686)

5,075,372

11,871,807

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

55

SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 30, 2022
(Millions of yen)

As of April 1, 2022

Noncontrollinginterests

Total equity

1,732,088

11,707,762

Comprehensive income
Net income
Other comprehensive income

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

Total comprehensive income

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

20,586-(5,845)-

21,22323,166(46,263)

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

1,647,802

13,519,609

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

56

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

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

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

57

Six-month period ended
September 30, 2021

Six-month period ended
September 30, 2022

590,125
422,753(13,562)436,688(219,462)(3,589,869)

684,793
185,599
92,197(265,331)(620,959)(194,092)(200,887)
456,846

4,353,542
314,217
1,095,426
54,870(1,029,780)(1,018,741)(70,526)
306,198

341,246

114,993

47,63849,806

72,811

138,915

1,354,014

2,032(8,657)(131,796)(430)(1,946)(130,525)
71,281
2,677,014
18,879(182,272)(693,260)
257,878
2,078,239(119,346)(31,535)(19,626)
33,895875,801
35,482(209,947)(254,761)
108,945555,520

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

(Millions of yen)

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

58

Six-month period ended
September 30, 2021

Six-month period ended
September 30, 2022

(419,014)
235,833(2,940,880)
1,365,766(173,800)
521,036(336,731)
454,386(81,675)-

130,954-(59,200)(41,541)

59,20047,513(535,121)(342,658)(86,570)
43,334359,058(28,370)(1,956,685)(12,964)
68,992
21
87,040271,294(908,254)

10,207

6,955,021(4,295,720)(179,201)
83,481

4,597,463(3,955,916)(140,144)
7,712(857,907)(347,747)(15,676)(257,784)(38,196)(148,911)(82,421)
254,432(19,742)(523,083)(36,178)(162,307)(8,593)(578,328)

54,659468,675

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

717,161
5,169,001
5,886,162

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

(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)
In connection with the integration of the Latin America Funds segment into the SoftBank Vision Funds segment,
the investments from LatAm Funds, which were included in “Investment securities” and “Other financial assets(non-current)” in the past fiscal year, are included in “Investments from SVF (FVTPL)” from the three-month
period ended June 30, 2022. In addition, the third-party interests in LatAm Funds, which were included in “Other
financial liabilities (non-current)” in the past fiscal year, are included in “Third-party interests in SVF” from thethree-month period ended June 30, 2022. In order to reflect the changes in presentation, ¥1,123,198 million,
which was included in “Investment securities,” and ¥20,025 million, which was included in “Other financial
assets (non-current)” as of March 31, 2022, are reclassified as “Investments from SVF (FVTPL).” Furthermore,¥80,663 million, which was included in “Other financial liabilities (non-current)” as of March 31, 2022, isreclassified as “Third-party interests in SVF.”“Investments from asset management subsidiaries,” “Securities pledged as collateral in asset management
subsidiaries,” and “Derivative financial assets in asset management subsidiaries,” which were separately
presented in the past fiscal year, are included in “Other financial assets (current)” from the three-month period
ended June 30, 2022 since the amounts decreased and became insignificant. In order to reflect the changes inpresentation, ¥158,094 million, ¥1,927 million, and ¥48,466 million, which were separately presented as“Investments from asset management subsidiaries,” “Securities pledged as collateral in asset management
subsidiaries,” and “Derivative financial assets in asset management subsidiaries” as of March 31, 2022,
respectively, are included in “Other financial assets (current).”(Condensed interim consolidated statement of profit or loss and condensed interim consolidated statement ofcomprehensive income)In connection with the integration of the Latin America Funds segment into the SoftBank Vision Funds segment,
gain and loss on investments at LatAm Funds, which were presented as “Gain (loss) on investments at Latin
America Funds” in the past fiscal year, are included in “Gain (loss) on investments at SoftBank Vision Funds”
from the three-month period ended June 30, 2022. In addition, the change in third-party interests in LatAm
Funds, which was included in “Other gain (loss)” in the past fiscal year, is included in “Change in third-party
interests in SVF” from the three-month period ended June 30, 2022. In order to reflect the changes inpresentation, ¥193,698 million and ¥(25,670) million, which were presented as “Gain (loss) on investments at
Latin America Funds,” are reclassified as “Loss on investments at SoftBank Vision Funds” for the six-month
period ended September 30, 2021 and the three-month period ended September 30, 2021, respectively. Similarly,¥(1,087) million and ¥(629) million, which were included in “Other gain,” are reclassified as “Change in thirdparty interests in SVF,” respectively.

59

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

(Condensed interim consolidated statement of cash flows)a. Cash flows from operating activities
In connection with the integration of the Latin America Funds segment into the SoftBank Vision Funds
segment, gain and loss on investments at LatAm Funds, which were presented as “(Gain) loss on investments
at Latin America Funds” in the past fiscal year, are included in “(Gain) loss on investments at SoftBank
Vision Funds” from the three-month period ended June 30, 2022. In addition, the change in third-party
interests in LatAm Funds, which was included in “(Gain) loss on other investments and other (gain) loss” inthe past fiscal year, is included in “Change in third-party interests in SVF” from the three-month period ended
June 30, 2022. In order to reflect the changes in presentation, ¥(193,698) million, which was presented as“Gain on investments at Latin America Funds,” and ¥1,087 million, which were included in “(Gain) loss onother investments and other gain” for the six-month period ended September 30, 2021, are reclassified as“Loss on investments at SoftBank Vision Funds” and “Change in third-party interests in SVF,” respectively.
“(Increase) decrease in restricted cash in asset management subsidiaries,” which was included in “Other” inthe past fiscal year, is separately presented from the three-month period ended June 30, 2022 since the amountincreased and became significant. In order to reflect the change in presentation, ¥72,811 million, which was
included in “Other” for the six-month period ended September 30, 2021, is reclassified as “Decrease in
restricted cash in asset management subsidiaries.”b. Cash flows from investing activities
In connection with the integration of the Latin America Funds segment into the SoftBank Vision Funds
segment, the payments for the investing activities by LatAm Funds, which were included in “Payments foracquisition of investments” and “Payments for loan receivables” in the past fiscal year, are included in“Payments for acquisition of investments by SVF” from the three-month period ended June 30, 2022. In orderto reflect the changes in presentation, ¥(246,989) million, which was included in “Payments for acquisition of
investments,” and ¥(12,452) million, which was included in “Payments for loan receivables” for the six-month
period ended September 30, 2021, are reclassified as “Payments for acquisition of investments by SVF.”
c. Cash flows from financing activities
In connection with the integration of the Latin America Funds segment into the SoftBank Vision Funds
segment, the contributions into LatAm Funds, which were included in “Other” in the past fiscal year, areincluded in “Contributions into SVF from third-party investors” from the three-month period ended June 30,
2022. In order to reflect the change in presentation, ¥673 million, which was included in “Other” for the sixmonth period ended September 30, 2021, is reclassified as “Contributions into SVF from third-party
investors.”

60

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

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,
2022. In addition, income taxes for the six-month period ended September 30, 2022 are calculated based on theestimated effective tax rate for the fiscal year.
Significant accounting policies for the SoftBank Vision Funds segment are consistent with the accounting
policies applied to the consolidated financial statements for the fiscal year ended March 31, 2022. The details aredescribed as follows.
(Significant accounting policies for the SoftBank Vision Funds segment)
For SVF1, SVF2 and LatAm Funds, the Company applies the following accounting policies.
a. Consolidation of SVF1, SVF2 and LatAm Funds by the Company
SVF1 and SVF2 are limited partnerships established by their respective general partners which are whollyowned subsidiaries of the Company (SVF2 owns limited liability companies including SVF2 LLC) 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, 2022, SVF1 and SVF2 are managed by SBIA and SBGA, respectively, which are
wholly-owned subsidiaries of the Company in the UK. SVF1 and SVF2 make investment decisions througheach investment committee, which was established in SBIA and SBGA, respectively. As such, the Company
has power as defined under IFRS 10 “Consolidated Financial Statements” over SVF1 and SVF2.
Furthermore, SBIA receives performance fees and SBGA receives performance-linked management fees.
The Company receives distributions attributable to limited partners based on the investment performance as
returns from SVF1 and SVF2. The Company has the ability to affect those returns through its power over
SVF1 and SVF2, and therefore, the Company is deemed to have control as stipulated in IFRS 10“Consolidated Financial Statements” over SVF1 and SVF2.
LatAm Funds is a limited liability company in which a wholly-owned subsidiary of the Company invests(LatAm Funds owns limited partnerships and the other forms of entities). LatAm Funds is consolidated by
the Company as it holds more than one-half of the voting rights of LatAm Funds.
Inter-company transactions such as management fees and performance fees to SBIA paid or to be paid, asapplicable, from SVF1, and management fees, performance-linked management fees and performance fees to
SBGA paid or to be paid, as applicable, from SVF2 or LatAm Funds are eliminated in consolidation.
b. Portfolio company investments made by SVF1, SVF2 and LatAm Funds(a) Investments in subsidiaries
Of the portfolio company investments made by SVF1, SVF2 and LatAm Funds, the portfolio companies
that the Company is deemed to control under IFRS 10 “Consolidated Financial Statements” are61SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 30, 2022

subsidiaries of the Company. Accordingly, their results of operations, assets and liabilities are included in
the Company’s condensed interim consolidated financial statements.
Gain and loss on investments in the subsidiaries of the Company which are recognized in SVF1, SVF2
and LatAm Funds are eliminated in consolidation.
(b) Investments in associates and joint ventures
Of the portfolio company investments made by SVF1, SVF2 and LatAm Funds, the portfolio companies
over which the Company has significant influence under IAS 28 “Investments in Associates and Joint
Ventures” are associates of the Company, and the portfolio companies that are joint ventures of theCompany when, as defined under IFRS 11 “Joint Arrangements,” SVF1, SVF2 and LatAm Funds havejoint 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, SVF2 and LatAm Funds
are accounted for as financial assets at FVTPL in accordance with paragraph 18 of IAS 28 “Investments
in Associates and Joint Ventures” and presented as “Investments from SVF (FVTPL)” in the condensed
interim consolidated statement of financial position. The payments for these investments are presented as“Payments for acquisition of investments by SVF” and the proceeds from sales of these investments arepresented as “Proceeds from sales of investments by SVF” under cash flows from investing activities in
the condensed interim consolidated statement of cash flows.
If the investments in associates and joint ventures that were transferred from SoftBank Group Corp. andits subsidiaries to SVF1, SVF2 or LatAm Funds were accounted for using the equity method prior to thetransfer, these investments continue to be accounted for using the equity method after the transfer to
SVF1, SVF2 or LatAm Funds and presented as “Investments accounted for using the equity method” inthe condensed interim consolidated statement of financial position. Gain and loss on the investments
which were recognized in SVF1, SVF2 or LatAm Funds are eliminated in consolidation and gain and loss
on the investments accounted for using the equity method are presented as “Income (loss) on equity
method investments” in the condensed interim consolidated statement of profit or loss.
(c) Other investments
Investments other than those in associates or joint ventures of the Company made by SVF1, SVF2 andLatAm Funds are accounted for as financial assets at FVTPL. The presentation of these investments in thecondensed interim consolidated statement of financial position and the condensed interim consolidated
statement of cash flows are the same as the above “(b) Investments in associates and joint ventures.”c. Contribution from limited partners in SVF1 and SVF2, and investors in LatAm Funds, SVF2 LLC and SLA
LLC (collectively “SVF Investors”)(a) Contribution from SVF Investors other than the Company (“Third-Party Investors,” and each a “ThirdParty Investor”)
The interests attributable to Third-Party Investors in SVF1, SVF2 and LatAm Funds are classified as
financial liabilities, “Third-party interests in SVF” in the condensed interim consolidated statement of62

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

financial position, due to the predetermined finite life and contractual payment provision to each of ThirdParty Investors at the end of the finite life within the constitutional agreements relating to SVF1, SVF2
and LatAm Funds. The liabilities are classified as “financial liabilities measured at amortized cost” upon
initial recognition. The carrying amounts attributable to Third-Party Investors represent the amounts thatwould be distributed in accordance with the constitutional agreements in a theoretical liquidation scenario
at the end of each quarter.
Third-Party Investor in SVF2 and LatAm Funds is entitled to make full or partial payments of its
investments and related adjustments at any point in time, at its discretion, from the date it became aninvestor in SVF2 LLC or SLA LLC to the end of company life of SVF2 LLC or SLA LLC, and as of
September 30, 2022, the Company has recognized receivables from Third-Party Investor. The receivables
are included in “Other financial assets (non-current)” in the condensed interim consolidated statement offinancial position.
“Third-party interests in SVF” fluctuates due to the results of SVF1, SVF2 and LatAm Funds in addition
to contributions from Third-Party Investors, and distributions and repayments of investments to ThirdParty Investors, respectively. The fluctuations due to the results of SVF1, SVF2 and LatAm Funds arepresented as “Change in third-party interests in SVF” in the condensed interim consolidated statement of
profit or loss.
Contributions from Third-Party Investors are included in “Contributions into SVF from third-party
investors” under cash flows from financing activities in the condensed interim consolidated statement ofcash flows. The distributions and repayments of investments to Third-Party Investors are included in“Distribution/repayment from SVF to third-party investors” under cash flows from financing activities in
the condensed interim consolidated statement of cash flows. No cash contributions into SVF2 and LatAm
Funds from Third-Party Investors and no cash distributions/repayments from SVF2 and LatAm Funds toThird-Party Investors were made as of September 30, 2022.
Uncalled committed capital from Third-Party Investors is not subject to IFRS 9 “Financial Instruments,”
and, therefore, such amount is not recorded in the condensed interim consolidated statement of financial
position.
(b) Contribution from the Company
Contributions to SVF1, SVF2 and LatAm Funds from the Company are eliminated in consolidation.

63

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

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, 2022, the Company had five reportable segments, the Investment Businessof Holding Companies segment, the SoftBank Vision Funds segment, the SoftBank segment, the Armsegment, and the Latin America Funds segment. As a result of the revision for its segment classifications, theLatin America Funds segment has been integrated into the SoftBank Vision Funds Segment from the threemonth period ended June 30, 2022 since LatAm Funds has been managed by SBGA, which manages SVF2.
The Investment Business of Holding Companies segment conducts, mainly through SoftBank Group Corp. asa strategic investment holding company, investment activities in a wide range of sectors in Japan and overseas
directly or through subsidiaries of the Company. The Investment Business of Holding Companies segment
consists of SoftBank Group Corp., SoftBank Group Capital Limited, SoftBank Group Japan Corporation, SB
Northstar that is an asset management subsidiary, and certain subsidiaries of the Company that conduct
investment or funding. Gain and loss on investments at Investment Business of Holding Companies consist ofgain and loss arising from investments held directly by SoftBank Group Corp. or through subsidiaries of theCompany. However, gain and loss on investments relating to investments in subsidiaries including dividend
income from subsidiaries and impairment loss on investments in subsidiaries are excluded.
The SoftBank Vision Funds segment conducts, mainly through SVF1, SVF2, and LatAm Funds, investment
activities in a wide range of technology sectors. Primarily, gain and loss on investments at SVF1, SVF2,
LatAm Funds, and others consist of gain and loss arising from investments held by SVF1, SVF2, and LatAm
Funds including the investment in the Company’s subsidiary.
The SoftBank segment provides, mainly through SoftBank Corp., mobile services, sale of mobile devices,
broadband services, and solution services in Japan, and through Yahoo Japan Corporation and LINE
Corporation, internet advertising and e-commerce services.
The Arm segment provides, through Arm, designs of microprocessor intellectual property and related
technology, the sale of software tools, and related services.

64

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

Information on business segments, which is 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 and PayPay Corporation, subsidiaries of the Company, and WeWork,an equity method associate, and others, which are included in segment income of the SoftBank Vision Funds
segment, and an elimination of income and loss on equity method investments recognized relating to PayPay
Corporation, which is included in segment income of the SoftBank segment.
Segment information for the six-month period ended September 30, 2021 and the three-month period ended
September 30, 2021 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 profit or loss, “Gain (loss) on investments” included in segment income includes
realized gain and loss from investments in financial assets at FVTPL for which investment performance ismeasured at fair value, unrealized gain and loss on valuation of investments, dividend income frominvestments, derivative gain and loss relating to investments in financial assets at FVTPL, and realized gain
and loss from investments accounted for using the equity method. The Investment Business of Holding
Companies segment calculates its segment income by eliminating gain and loss on investments relating toinvestments in subsidiaries, including dividend income from subsidiaries and impairment loss on investments
in subsidiaries.
Intersegment transaction prices are determined under the same general business conditions as applied forexternal customers.

65

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

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

Reportable segments
Investment Businessof Holding Companies

SoftBank Vision
Funds

SoftBank

Arm

Net sales
Customers
Intersegment--

2,718,057
6,300

161,093
262

Total

-

-

2,724,357

161,355

Segment income
Depreciation andamortization
Gain (loss) on
investments

1,015,562(401,186)

532,125

33,994(1,935)(353)(367,752)(36,595)

279,689(549,100)

20,28412

Finance cost(138,412)(10,157)(31,104)(489)

Foreign exchange loss

(89,849)

(51)

(128)

-

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

623,989

1,424

2

(977)

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

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 and

1,180,495(16,908)(116,616)

1,046,971(406,635)(16,118)-(422,753)(249,115)(10,667)(135,453)(395,235)

Finance cost

(180,162)(7,568)2,131(185,599)

Foreign exchange loss

(90,028)(2,169)-(92,197)

237,857

19,486

7,988

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

amortization
Gain (loss) on
investments

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

66

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

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

Reportable segments
Investment Businessof Holding Companies

SoftBank Vision*
Funds

SoftBank

Arm

Net sales
Customers
Intersegment--

2,799,758
10,141

183,705
-

Total

-

-

2,809,899

183,705

Segment income
Depreciation andamortization
Gain (loss) on
investments

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

429,281

35,631(2,176)(349)(368,107)(43,910)

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

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

503

1,633

3,008

(23,879)-(29,042)423

1,041,501

620

1,541

480

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

Total

Other

Reconciliations

Consolidated

Net sales
Customers
Intersegment

2,983,463
10,141

199,014
7,038(17,179)

3,182,477-

Total

2,993,604

206,052(17,179)

3,182,477

376,547(23,005)(60,906)

292,636(414,542)(22,146)-(436,688)(790,882)(17,463)(41,253)(849,598)(308,047)(8,357)2,187(314,217)(1,094,999)

(427)

-

(1,095,426)(52,498)307(2,679)(54,870)

1,044,142(14,362)-

1,029,780

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

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

67SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 30, 2022

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

Reportable segments
Investment Businessof Holding Companies

SoftBank Vision
Funds

SoftBank

Arm

Net sales
Customers
Intersegment--

1,364,049
3,738

87,076
1

Total

-

-

1,367,787

87,077390,235(853,116)

261,171

25,213

(940)

(177)

(183,412)(18,122)(461,692)(1,160,038)

5,022

6

(78,818)(5,853)(15,551)(231)(77,188)

(56)

116

-

212,319-(15,915)(1,087)732,200

720

101

(526)

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

Total

Other

Reconciliations

Consolidated

Net sales
Customers
Intersegment

1,451,125
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 and(176,497)(50,066)(18,944)(245,507)(202,651)(7,188)-(209,839)(1,616,702)(9,637)(31,964)(1,658,303)(100,453)(3,463)

1,116(102,800)(77,128)(195)-(77,323)

195,317

17,446

2,188

214,951

732,495--

732,495

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

68SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 30, 2022

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

Reportable segments
Investment Businessof Holding Companies

SoftBank Vision
Funds

SoftBank

Arm

Net sales
Customers
Intersegment--

1,442,764
5,014

90,954
-

Total

-

-

1,447,778

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

203,892

5,785(1,101)(181)(184,796)(22,569)

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

427

1,370

1,350

115,903-(15,506)508

1,286,487

121

640

1,782

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

Total

Other

Reconciliations

Consolidated

Net sales
Customers
Intersegment

1,533,718
5,014

76,7293,904(8,918)1,610,447-

Total

1,538,732

80,633(8,918)1,610,447

Segment income
Depreciation and

3,650,115

2,630(67,654)

3,585,091(208,647)(7,189)-(215,836)

2,030,558

10,242(55,958)

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

1,117(200,078)(274,961)

(496)

-

(275,457)

100,905

4,014(1,419)103,500

1,289,030--

1,289,030

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

69

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

4. SoftBank Vision Funds business(1) Income and loss arising from the SoftBank Vision Funds businessa. Overview
Segment income arising from the SoftBank Vision Funds business (income before income tax) represents thenet profits of the SoftBank Vision Funds business, after deducting the net profits attributable to Third-Party
Investors. The net profits attributable to Third-Party Investors are the amount after deducting management
fees, performance-linked management fees, and performance fees, as applicable, that SBIA receives from
SVF1, and that SBGA receives from SVF2 and LatAm Funds.
The amount of the net profits attributable to Third-Party Investors that is deducted from the segment income
is presented as “Change in third-party interests in 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 Six-month period ended
September 30, 2021
September 30, 2022
Loss on investments at SoftBank Vision Funds
Loss on investments at SVF1, SVF2, and LatAm
Funds
2

Realized gain on investments
Unrealized loss on valuation of investments
3

Change in valuation for the fiscal year
Reclassified to realized gain recorded in the4past fiscal years
Interest and dividend income from investments
Derivative gain (loss) on investments
5

Effect of foreign exchange translation
Subtotal

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

70

853,408

5,398(336,134)(4,200,240)(1,015,862)(102,840)

23,174(42,535)

759
36,365(31,850)(55,645)(549,799)
699(4,316,203)
3,861(549,100)(4,312,342)(35,005)(10,157)
1,424
194,092(2,440)(30,983)(35,795)
620
1,018,741
9,105(401,186)(3,350,654)

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

Notes:
1. The Latin America Funds segment has been integrated into the SoftBank Vision Funds Segment from the three-month period
ended June 30, 2022 since LatAm Funds has been managed by SBGA, which manages SVF2. Segment income arising fromthe SoftBank Vision Funds business for the six-month period ended September 30, 2021 is presented based on the reportablesegments after the aforementioned change.
2. The amount of realized gain and loss on investments is the exit price net of the investment cost. In addition to the realized
gain and loss on sales by cash consideration, the realized gain and loss by share exchange are included.
3. The unrealized gain and loss on valuation arising from Arm shares held by SVF1 is included in “Loss on investments at
SoftBank Vision Funds” (in Change in valuation for the fiscal year under Unrealized loss on valuation of investments) in theabove-mentioned segment income. However, the unrealized gain and loss on valuation is eliminated in consolidation as Arm
is a subsidiary of the Company. SVF1 does not record unrealized gain and loss on investments for the six-month period
ended September 30, 2022.
For the six-month period ended September 30, 2022, ¥69,768 million of the unrealized gain on valuation arising from
PayPay Corporation shares held by SVF2 is included in “Loss on investments at SoftBank Vision Funds” (in Change invaluation for the fiscal year under Unrealized loss on valuation of investments) in the above-mentioned segment income.
However, the unrealized gain on valuation is eliminated in consolidation as PayPay Corporation is a subsidiary of theCompany.
For the three-month period ended September 30, 2021, a wholly-owned subsidiary of the Company other than SVF1 wastransferred through sales from the Company to SVF2. As a result of the transaction, WeWork shares held by SVF2 include
common shares and the common shares are continuously accounted for using the equity method on a consolidation basis
after the transfer. For the six-month period ended September 30, 2022, ¥26,070 million of the unrealized loss on valuation
arising from WeWork common shares held by SVF2 is included in “Loss on investments at SoftBank Vision Funds” (inChange in valuation for the fiscal year under Unrealized loss on valuation of investments) in the above-mentioned segment
income. However, the unrealized loss on valuation is eliminated in consolidation as WeWork is an equity method associateof the Company.
The unrealized gain and loss on valuation, that are eliminated in consolidation, are not included in “Gain (loss) on
investments at SoftBank Vision Funds” in the condensed interim consolidated statement of profit or loss.
4. It represents the unrealized gain and loss on valuation of investments recorded as “Gain (loss) on investments at SVF1, SVF2,
and others” in the past fiscal years, which are reclassified to “Realized gain on investments” due to the realization for the sixmonth period ended September 30, 2022.
5. Unrealized gain and loss on valuation of investments are translated using the average exchange rate for the quarter in which
the gain and loss were recognized, while realized gain and loss on investments are translated using the average exchange rate
for the quarter in which the shares were disposed. “Effect of foreign exchange translation” is arising from the different
foreign currency exchange rates used for unrealized gain and loss on valuation and realized gain and loss.

71

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

(2) Third-party interests in SVF
a. Terms and conditions of contribution from/ distribution to SVF Investors
Contributions by SVF Investors are classified as “Equity” and “Preferred Equity” depending on the terms andconditions of distribution. Preferred Equity is prioritized over Equity with regard to distribution and return ofcontribution.
Performance-based distributions attributed to SVF Investors, consisting of the Company and Third-Party
Investors, are calculated using the net proceeds from the investment performance, as applicable, of SVF1,
SVF2 and LatAm Funds. The net proceeds from SVF1 and LatAm Funds are also allocated to theperformance fees attributed to SBIA and SBGA, respectively, using the method specified in the limited
partnership agreement. The amount of performance-based distribution attributed to SVF Investors is allocatedto each of the SVF Investors based on the proportion of their respective Equity contribution. The amount of
performance-based distributions is paid to each of the SVF Investors after each of SVF1, SVF2 and LatAm
Funds, as applicable, receive cash through dividend, or disposition or monetization of investments.
In SVF1, fixed distributions are defined as distributions of Preferred Equity holders which are calculated
equal to a 7% rate per annum based on their contributions. The fixed distributions are made every lastbusiness day of the months of June and December. The details of the terms and conditions of the Equity
contributed by Third-Party Investor in SVF2 and LatAm Funds are described in “Note 14. Related party
transactions regarding a co-investment program with restricted rights to receive distributions.” There are no
Third-Party Investors who contributed to Preferred Equity in SVF2 and LatAm Funds.
In the following table, Third-Party Investors contributing Equity are defined as “Investors entitled toperformance-based distribution” and Third-Party Investors contributing Preferred Equity are defined as“Investors entitled to fixed distribution.”72

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

b. Changes in interests attributable to Third-Party Investors(a) Third-party interests in SVF1
Changes in interests attributable to Third-Party Investors in SVF1 (included in “Third-party interests in SVF”
in the condensed interim consolidated statement of financial position) are as follows:(Millions of yen)(For reference purposes only)
Links with the condensed interim
consolidated financial statements
Consolidated
Consolidated
Third-party interests instatement
statement of cash
SVF1of profit or loss
flows
(Total of current liabilities (Negative figures (Negative figures
represent
represent
and non-current liabilities)
expenses)
payments)(Breakdown)
As of April 1, 2022
5,289,754
Contributions from third-party
7,712
7,712
investors
Changes in third-party interests(695,794)
695,794
Attributable to investors entitled to84,306
fixed distribution
Attributable to investors entitled to(780,100)
performance-based distribution
Distribution/repayment to third-party(347,747)(347,747)
investors
Exchange differences on translating
872,015*
third-party interests
As of September 30, 2022
5,125,940
Note:* Exchange differences were included in “Exchange differences on translating foreign operations” in the condensed interim
consolidated statement of comprehensive income.

73SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 30, 2022(b) Third-party interests in SVF2 and receivables
Changes in interests attributable to Third-Party Investor in SVF2 (included in “Third-party interests in SVF”
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.

Third-party interests in
SVF2(Total of current liabilities
and non-current liabilities)

As of April 1, 2022
Changes in third-party interests
Exchange differences on translating*
third-party interests
As of September 30, 2022

(Millions of yen)(For reference purposes only)
Links with the condensed interim
consolidated financial statements
Consolidated
Consolidated
statement
statement of cashof profit or loss
flows
(Negative figures (Negative figures
represent
represent
expenses)
payments)

270,081(291,332)

291,332-

21,251

-

-

-

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 statement of financial position) are as follows: The details of the receivables from Third-Party
Investor in SVF2 are described in “Note 14. Related party transactions regarding a co-investment programwith restricted rights to receive distributions.”

As of April 1, 2022
Increase in receivables from Equity Acquisition Amount andaccrued premiums charged to third-party investor
Exchange differences on receivables
As of September 30, 2022

74

(Millions of yen)
Receivables from third-party
investor in SVF2
342,663
5,538
63,223
411,424

SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 30, 2022(c) Third-party interests in LatAm Funds and receivables
Changes in interests attributable to Third-Party Investor in LatAm Funds (included in “Third-party interests in
SVF” in the condensed interim consolidated statement of financial position) are as follows: Third-party
Investor in LatAm Funds is the investor entitled to performance-based distribution.

Third-party interests in
LatAm Funds(Total of current liabilities
and non-current liabilities)

As of April 1, 2022
Changes in third-party interests
Exchange differences on translating*
third-party interests
As of September 30, 2022

(Millions of yen)(For reference purposes only)
Links with the condensed interim
consolidated financial statements
Consolidated
Consolidated
statement
statement of cashof profit or loss
flows
(Negative figures (Negative figures
represent
represent
expenses)
payments)

80,663(31,615)

31,615-

11,365--60,413Note:* 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 LatAm Funds. The changes in the receivablesfrom Third-Party Investor in LatAm Funds (included in “Other financial assets (non-current)” in thecondensed interim consolidated statement of financial position) are as follows: The details of the receivablesfrom Third-Party Investor in LatAm Funds are described in “Note 14. Related party transactions regarding a
co-investment program with restricted rights to receive distributions.”

As of April 1, 2022
Increase in receivables from Equity Acquisition Amount andaccrued premiums charged to third-party investor
Exchange differences on receivables
As of September 30, 2022

(Millions of yen)
Receivables from third-party
investor in LatAm Funds
80,663
1,308
14,88396,854c. Uncalled committed capital from Third-Party Investors
Uncalled committed capital from SVF1’s Third-Party Investors as of September 30, 2022 was $8.2 billion.

75

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

(3) Management fees and performance fees
Terms and conditions of management fees, performance-linked management fees, and performance fees,
included in segment income from the SoftBank Vision Funds business, are as follows.
a. Management fees and performance fees in SVF1
Management fees to SBIA from SVF1 are, in accordance with the limited partnership agreement, calculated
by multiplying 1% per annum by Equity contributions used to fund investments and paid to SBIA by SVF1
quarterly. A clawback provision is attached to the management fees received, which is triggered under certain
conditions based on future investment performance.
Same as the performance-based distributions, the amount of the performance fees to SBIA from SVF1 iscalculated using the allocation method as specified in the limited partnership agreement. SBIA is entitled toreceive the performance fees when SVF1 receives cash through disposition, dividend and monetization of aninvestment.
From the inception of SVF1 to September 30, 2022, the cumulative amount of performance fees paid to SBIA
was $439 million. For the six-month period ended September 30, 2022, 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-linked management fees in SVF2
Management fees to SBGA from SVF2 are, in accordance with the constitutional agreements, calculated bymultiplying 0.7% per annum by the acquisition cost of investments and paid to SBGA by SVF2 quarterly.
The amount of the performance-linked management fees to SBGA from SVF2 is determined, based on theinvestment performance for certain periods specified in the constitutional agreement, according to the agreed
principle. SBGA is entitled to receive the performance-linked management fees after certain periods for theinvestment performance measurement specified in the constitutional agreement provided that there areavailable cash proceeds through disposition, dividend and monetization of an investment in SVF2.
From the inception of SVF2 to September 30, 2022, no performance-linked management fees were paid to
SBGA.
c. Management fees, performance-linked management fees and performance fees in LatAm Funds
Management fees to SBGA from LatAm Funds are, in accordance with the constitutional agreements,
calculated based on the acquisition cost of investments and paid to SBGA by LatAm Funds quarterly.
LatAm Funds introduced the performance-linked management fees in July 2022. The amount of theperformance-linked management fees to SBGA from LatAm Funds is determined, based on the investment
performance for certain periods specified in the constitutional agreement, according to the agreed principle.
SBGA is entitled to receive the performance-linked management fees after certain periods for the investment
76

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

performance measurement specified in the constitutional agreement provided that there are available cash
proceeds through disposition, dividend and monetization of investments in LatAm Funds.
Same as the performance-based distributions, the amount of the performance fees to SBGA from LatAm
Funds is calculated using the allocation method as specified in the constitutional agreements. SBGA isentitled to receive the performance fees when LatAm Funds receives cash through disposition, dividend andmonetization of an investment.
From the inception of LatAm Funds to September 30, 2022, neither performance fees nor performance-linked
management fees were paid to SBGA.

77

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

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

As ofMarch 31, 2022

As of
September 30, 2022

Current
Short-term borrowings
Commercial paper
1

Current portion of long-term borrowings
Current portion of corporate bonds
Current portion of financial liabilities relating tosale of shares by prepaid forward contracts
Current portion of installment payables

2

Total
Non-current
Long-term borrowings
Corporate bonds
Financial liabilities relating to sale of shares by
2

prepaid forward contracts
Installment payables
Total

1,551,238
527,201
2,377,864
519,870

935,709379,001
1,474,991
595,361

2,352,539

1,009,246

150

141

7,328,862

4,394,449

5,472,605
6,471,624

5,913,474
6,464,365

2,184,034

2,244,648

307

236

14,128,570

14,622,723

Notes:
1. Skywalk Finance GK had made a borrowing by using Alibaba shares pledged as collateral. For the six-month period ended
September 30, 2022, Skywalk Finance GK repaid all of its borrowing of $6.0 billion before the maturity date and thecollateral for Alibaba shares was released. The carrying amount of current portion of long-term borrowings is ¥731,517
million and the carrying amount of Alibaba shares pledged as collateral, on a consolidation basis, which are included in“Investments accounted for using the equity method” is ¥1,154,179 million in the condensed interim consolidated financial
position as of March 31, 2022.
2. These are primarily financial liabilities relating to sale of shares by prepaid forward contracts using Alibaba shares. For thesix-month period ended September 30, 2022, the balance of liabilities decreased significantly due to the early settlement of apart of prepaid forward contracts using Alibaba shares. The details are described in “(2) Transactions for sale of Alibaba
shares by prepaid forward contracts.”(2) Transactions for sale of Alibaba shares by prepaid forward contracts
Wholly-owned subsidiaries of the Company entered into prepaid forward contracts with financial institutions
to procure funds using Alibaba shares, which are held by the subsidiaries.
In the prepaid forward contracts, the number of Alibaba shares settled by the prepaid forward contracts isfixed regardless of changes in market share price in the future in a forward contract or determined byreference to market price of the shares at the valuation dates prior to the settlement date. The latter type ofcontracts include Floor contract that a floor is set for the price of shares settled and Collar contract that a cap

78SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 30, 2022

and a floor are set for the price of shares settled. A part of wholly-owned subsidiaries of the Company
entering into prepaid forward contracts with financial institutions to procure funds using Alibaba shares(“Entities for fund procurement by using Alibaba shares”), in addition to the prepaid forward contracts, enter
into the call spread (combination of long position of call option and short position of call option with different
strike prices) contracts in preparation for Alibaba shares price rise.
The aforementioned prepaid forward contracts are classified as hybrid financial instruments with embedded
derivatives. The Company accounts for the contracts by bifurcating the main contracts and embedded
derivatives, and the main contracts are recognized as financial liabilities relating to sale of shares by prepaid
forward contracts then measured at amortized cost while the embedded derivatives are measured at fair value.
Also, the call spread contracts are measured at fair value as well. In addition, for the derivative financial
assets and the derivative financial liabilities recognized from the prepaid forward contracts and the call spread
contracts, a tax effect is recognized. The ending balance of the derivative financial assets and the derivative
financial liabilities recognized from the prepaid forward contracts and the call spread contracts are describedin “Note 6. Financial instruments.”
Entities for fund procurement by using Alibaba shares have the option to settle all of the prepaid forward
contracts by delivering cash, Alibaba shares, or a combination of cash and Alibaba shares. If Entities for fundprocurement by using Alibaba shares elect cash settlement, Entities for fund procurement by using Alibaba
shares will pay the cash equivalent to the fair value of the number of shares subject to the settlement, as
determined by reference to the market price of the shares.
Alibaba shares held by Entities for fund procurement by using Alibaba shares are pledged as collateral inaccordance with all of the prepaid forward contracts, and except for a certain contract, the Company granted
the right of use to the financial institutions with respect to such shares. However, the collateral can bereleased by cash settlement at the discretion of Entities for fund procurement by using Alibaba shares.
Entities for fund procurement by using Alibaba shares procured ¥1,353,700 million ($10.5 billion) in total byentering into forward contracts for the three-month period ended June 30, 2022, and ¥1,089,793 million ($7.9
billion) in total by entering into forward contracts for the three-month period ended September 30, 2022.
In contrast, for the three-month period ended September 30, 2022, a part of prepaid forward contracts was
settled by Alibaba shares from August to September 2022 based on the board resolution in August 2022(“Physical settlement under the board resolution in August 2022”), and most of them were early termination.
As a result of the Physical settlement under the board resolution in August 2022, the Company lost significant
influence over Alibaba via voting rights and Alibaba ceased to be an equity method associate of theCompany. The details are described in “Notes 1” in “(1) Gain and loss on investments at Investment Businessof Holding Companies” under “Note 9. Gain on investments.” Consequently, ¥891,249 million of current
portion of financial liabilities relating to sale of shares by prepaid forward contracts, ¥2,930,540 million offinancial liabilities relating to sale of shares by prepaid forward contracts, ¥304,895 million of “Derivative
financial assets (current),” ¥478,934 million of “Derivative financial assets (non-current),” ¥13,376 million of“Derivative financial liabilities (non-current),” and ¥2,609,895 million of Alibaba shares included in“Investments accounted for using the equity method” or “Investment securities,” which was recognized as aresult of the remeasurement, were derecognized from the condensed interim consolidated statement offinancial position as of the settlement date.
Also, before aforementioned settlement based on the board resolution in August 2022, for the three-month79

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

period ended June 30, 2022 and the three-month period ended September 30, 2022, the settlement date ofcertain prepaid forward contracts arrived and they were settled by Alibaba shares. As a result, ¥741,568
million of current portion of financial liabilities relating to sale of shares by prepaid forward contracts,¥480,155 million of “Derivative financial assets (current),” and ¥152,653 million of Alibaba shares included
in “Investments accounted for using the equity method” were derecognized from the condensed interim
consolidated statement of financial position as of the settlement date, and ¥132,157 million of “Gain on
investments at Investment Business of Holding Companies” was recorded in the condensed interim
consolidated statement of profit or loss.
As of September 30, 2022, the Company set ¥1,462,948 million of Alibaba shares, which is recognized as“Investment securities” in the condensed interim consolidated statement of financial position, as collateral for¥1,009,246 million of current portion of financial liabilities relating to sale of shares by prepaid forward
contracts and ¥1,775,536 million of financial liabilities relating to sale of shares by prepaid forward contracts.

80SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 30, 2022

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

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

Six-month period ended
September 30, 2021

Six-month period ended
September 30, 2022

(1,001,154)
92,90068,507(58,300)(908,254)

10,207(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, 2021

Six-month period ended
September 30, 2022

3,692,760
1,920,055

2,093,970
60,0001,342,206

2,443,493

6,955,021

4,597,463

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

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

81

Six-month period ended
September 30, 2021

Six-month period ended
September 30, 2022

(3,520,633)(455,600)(3,751,029)(202,461)(319,487)(2,426)(4,295,720)(3,955,916)

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

6. Financial instruments
The details of derivative contracts are mainly as follows:(Millions of yen)
As ofMarch 31, 2022

As of
September 30, 2022

Carrying amount(fair value)

Carrying amount(fair value)

Assets
Prepaid forward contracts using Alibaba shares
1(Option contracts)
Call spread contracts relating to prepaid forward1

contracts using Alibaba shares
Prepaid forward contracts using Alibaba shares
1(Forward contracts)
Contingent consideration relating to acquisition of2

T-Mobile shares
Short call option for T-Mobile shares to Deutsche

Liabilities

AssetsLiabilities

1,379,801-

1,161,676

-

2,302

-

616

-

190,334(67,672)

85,287(10,133)

591,429-

792,015--(103,754)-(54,653)

3

Telekom

Notes:
1. The details of prepaid forward contracts using Alibaba shares and call spread contracts relating to prepaid forward contracts using
Alibaba shares are described in “(2) Transactions for sale of Alibaba shares by prepaid forward contracts” under “Note 5.
Interest-bearing debt.”
2. 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. In addition, “T-Mobile”
indicates T-Mobile US, Inc. after merging with Sprint.
3. The decrease was primarily due to the partial exercise of the call options by Deutsche Telekom AG (“Deutsche Telekom”). The
details are described in “Notes 3” in “(1) Gain and loss on investments at Investment Business of Holding Companies” under“Note 9. Gain on investments.”

82

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

7. 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, 2022

USD

As of
September 30, 2022

122.3919.26

CNY

144.81
20.37(2) Average rate for the quarter
For the six-month period ended September 30, 2021
(Yen)

USD
CNY

Three-month period ended
June 30, 2021

Three-month period ended
September 30, 2021

110.0017.01

110.4717.09

For the six-month period ended September 30, 2022
(Yen)

USD
CNY

Three-month period ended
June 30, 2022

Three-month period ended
September 30, 2022

129.04
19.60

138.6820.19

83

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

8. 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 unconditional rightto 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)

Balance at the beginning of the period*

Increase during the period
Decrease during the period

Six-month period ended
September 30, 2021

Six-month period ended
September 30, 2022

351,298
25,980(367,941)

76,16497,807
(906)

9,337

173,065

Balance at the end of the period
Note:* For the six-month period ended September 30, 2022, due to purchases of treasury stock under the resolutions passed at theBoard of Directors meeting held on November 8, 2021, the number of treasury stock increased by 97,807 thousand shares (theamount purchased is ¥523,078 million).

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

As ofMarch 31, 2022
Equity financial assets at FVTOCI
Debt financial assets at FVTOCI
Cash flow hedges
Exchange differences on translating foreign*

operations
Total

As of
September 30, 2022

46,338298
1,696

51,189358(71,074)

2,447,826

5,094,899

2,496,158

5,075,372

Note:* The increase was primarily due to a weaker yen against the U.S. dollar compared with the exchange rate as of March 31,
2022.

84

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

9. 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 settlement of prepaid forward
1,2

contracts using Alibaba shares
3
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
1,2

Realized gain (loss) on investments

2

Unrealized gain (loss) on valuation of investments
4
Derivative gain on investments
Other
Total

Six-month period ended
September 30, 2021

Six-month period ended
September 30, 2022-

4,838,251

3,149

24,842

62,951(54,226)(79,778)(58,856)

76,185(5,842)

49,524(147,666)

87,19368,49912,207(1,170,459)
86,533
12,078279,930

3,524,655

Notes:
1. During the course of the Physical settlement under the board resolution in August 2022, the Company lost significant
influence over Alibaba because the voting power against Alibaba held by the Company decreased to below 20%, and Alibaba
ceased to be an equity method associate of the Company. At the same time, Alibaba shares held by the Company as of thedate the Company lost significant influence over Alibaba (“remaining Alibaba shares”) were remeasured based on the stock
price of that day and were included in “Investment securities” in the condensed interim consolidated statement of financial
position.
As a result of the Physical settlement under the board resolution in August 2022 and the remeasurement of remaining Alibaba
shares, for the three-month period ended September 30, 2022, ¥584,796 million of gain on settlement of prepaid forward
contracts using Alibaba shares and ¥3,996,668 million of gain from remeasurement of Alibaba shares were recognized.
In the schedule above, gain on settlement of prepaid forward contracts using Alibaba shares is divided into “Gain relating tosettlement of prepaid forward contracts using Alibaba shares” and “Realized gain (loss) on investments,” depending onwhether a physical settlement is completed before Alibaba ceases to be an equity method associate of the Company or not,and the gain from remeasurement of Alibaba shares is included in “Gain relating to settlement of prepaid forward contracts
using Alibaba shares.”Also, before the Physical settlement under the board resolution in August 2022, for the six-month period ended September 30,
2022, certain prepaid forward contracts using Alibaba shares were settled by Alibaba shares and ¥132,157 million of gain on
settlement of prepaid forward contracts using Alibaba shares was recognized. The gain is included in “Gain relating tosettlement of prepaid forward contracts using Alibaba shares.”
2. “Gain relating to settlement of prepaid forward contracts using Alibaba shares” is composed of (1) gain on settlement of
prepaid forward contracts using Alibaba shares which a settlement is completed before Alibaba ceases to be an equity method
associate of the Company and (2) the effect of the remeasurement of remaining Alibaba shares recorded as of the date when
Alibaba ceases to be an equity method associate of the Company. Effects of stock price changes after Alibaba ceases to be an

85

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

equity method associate of the Company are included in “Realized gain (loss) on investments” or “Unrealized gain (loss) on
valuation of investments” rather than “Gain relating to settlement of prepaid forward contracts using Alibaba shares.”3. On April 12, 2022, Deutsche Telekom exercised options to purchase T-Mobile shares granted by the Company to Deutsche
Telekom and the Company sold 21,153,145 of T-Mobile shares held by a wholly-owned subsidiary of the Company toDeutsche Telekom. In connection with the exercise, the wholly-owned subsidiary of the Company received $2.40 billion as
consideration for the sale of T-Mobile shares. As a result, ¥24,842 million of gain relating to sales of T-Mobile shares wasrecorded for the six-month period ended September 30, 2022.
Cumulative gains on T-Mobile shares and the options associated with the transaction are ¥22,528 million. Of this, ¥6,012
million of loss was recorded for the fiscal year ended March 31, 2021, and ¥3,698 million of gain was recorded for the fiscal
year ended March 31, 2022.
4. For the six-month period ended September 30, 2022, ¥83,022 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 2” under “Note
6. Financial instruments.”(2) Gain and loss on investments at SoftBank Vision Funds
The details of gain and loss on investments at SoftBank Vision Funds are described in “Note 4. SoftBank
Vision Funds business.”

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

Six-month period ended
September 30, 2021

Six-month period ended
September 30, 2022

(185,599)(314,217)

Note:* For the six-month period ended September 30, 2022, the increase was mainly due to the full amortization of the unamortizedcost associated with the financial liabilities related to the early settlement of prepaid forward contracts using Alibaba shares.
The details are described in “(2) Transactions for sale of Alibaba shares by prepaid forward contracts” under “Note 5. Interestbearing debt.”

86SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 30, 2022

11. Derivative gain (excluding gain (loss) on investments)
For the six-month period ended September 30, 2022, derivative gain of ¥895,229 million was recorded for the
prepaid forward contracts using Alibaba shares and the call spread contracts relating to prepaid forward contracts
using Alibaba shares. The details of the contracts are described in “(2) Transactions for sale of Alibaba shares by
prepaid forward contracts” under “Note 5. Interest-bearing debt.” The above gain includes ¥790,145 million ofderivative gain recorded for the three-month period ended September 30, 2022 regarding the prepaid forward
contracts using Alibaba shares subject to the Physical settlement under the board resolution in August 2022. The
details of the physical settlement are described in “Notes 1” in “(1) Gain and loss on investments at Investment
Business of Holding Companies” under “Note 9. Gain on investments.”

12. Other gain
The components of other gain and loss are as follows:(Millions of yen)Six-month period ended Six-month period ended
September 30, 2021
September 30, 2022
Interest income
1

Dilution gain from changes in equity interest
Gain relating to loss of control over subsidiaries
Gain from remeasurement relating to businesscombination2

Impairment loss on equity method investments
3

Provision for loss relating to litigation
Reversal of impairment loss on equity method
investments
Other
Total

18,294

29,41853,65884,57492,447

16,438-15,158(1,177)(23,611)-(18,522)

42,189-(14,152)(12,218)

191,259

91,237

Notes:
1. Primarily, the amount is related to the dilution gain arising from changes in Alibaba’s equity interest held by the Company,
due to the exercise of stock options in Alibaba, before Alibaba ceased to be an equity method associate.
2. Primarily, ¥16,583 million of impairment loss was recorded as the fair value of WeWork shares accounted for using theequity method decreased for the six-month period ended September 30, 2022.
3. The amount was recorded based on the ruling of the Tokyo District Court delivered on September 9, 2022, related to litigationin which SoftBank Corp. was involved as a party, associated with a project to migrate the communications network
connecting 27,000 sites (postal offices, etc.) countrywide to a new network, the 5th PNET. In addition, the case was appealed
to the Tokyo High Court on September 22, 2022.

87SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 30, 2022

13. Supplemental information to the condensed interim consolidated statement of cash flows(1) Income taxes paid and income taxes refunded
For the six-month period ended September 30, 2022
Payment of withholding income tax related to dividends within the group companies of ¥78,208 million is
included in “Income taxes paid.” In addition, refunded withholding income tax related to dividends within thegroup companies of ¥92,895 million is included in “Income taxes refunded.”(2) Proceeds from sales/redemption of investments
For the six-month period ended September 30, 2022
¥309,696 million of proceeds received from sales of T-Mobile shares is included in “Proceeds fromsales/redemption of investments.”(3) Significant non-cash transactions
For the six-month period ended September 30, 2022
Based on the board resolution in August 2022 or the settlement date of a part of prepaid forward contracts
arrived, ¥4,563,357 million of financial liabilities relating to sale of shares by prepaid forward contracts,¥1,263,984 million of derivative financial assets, and ¥13,376 million of derivative financial liabilities, weresettled by Alibaba shares. The details are described in “(2) Transactions for sale of Alibaba shares by prepaid
forward contracts” under “Note 5. Interest-bearing debt.”

88SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 30, 2022

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

89SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 30, 2022

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

Masayoshi Son(MASA USA
LLC (MgmtCo))

Nature ofrelationship

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

For the six-month
period ended
September 30, 2022
Amount oftransaction

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

The premium received
on SVF2 LLC’s
receivables

5,538($41 million)

As of
September 30, 2022
Balance atperiod end
3,4

MgmtCo’s Equity
5,6
interests in SVF2 LLC

Net balance at period end(Receivables in SVF2 LLC less7
MgmtCo’s Equity interests in SVF2 LLC)

411,424($2,841 million)

3

-

-

411,424($2,841 million)

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

90

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

3. Balance at period end of receivables from MgmtCo for receipt of capital contribution and related adjustments
Balance at period end is the balance of SVF2 LLC’s receivables consist of the balance related to receipt of capital contribution,
related adjustments and premiums received from MgmtCo, less any decrease in receivables due to offsetting settlement with
distributions to MgmtCo.
The amount of the transaction for “Receipt of capital contribution in SVF2 LLC and related adjustments” is MgmtCo’s Equity
Acquisition Amount in SVF2 LLC at the inception of the program, which consists of the amount calculated based on MgmtCo’s
Equity interests of 17.25% in the SVF2’s initial acquisition costs of the relevant portfolio companies held by SVF2 LLC andrelated adjustments calculated based on 17.25% interest in the increase in the portfolio companies’ fair value from the initialacquisition costs at SVF2 to June 30, 2021, and the adjustment equivalent to interests for the period from the Company’scontribution to SVF2 until June 30, 2021.
MgmtCo is entitled to make full or partial payment of its Equity Acquisition Amount at any point in time at its discretion fromthe date it became an investor in SVF2 LLC to the end of the company life of SVF2 LLC. MgmtCo is required to pay a premiumof 3% per annum on the unpaid Equity Acquisition Amount until the unpaid amount is paid in full. “The premium received on
SVF2 LLC’s receivables” refers to the amount of such premium accrued in the current period. MgmtCo is also entitled to makefull or partial payment of the premium at any point in time, at its discretion on the same terms and conditions as Equity
Acquisition Amount.
Any distributable amount from SVF2 LLC to MgmtCo is offset against the receivables at the time of the distribution notice andno distribution payments to MgmtCo are made until the SVF2 LLC’s receivables are paid in full.
4. Collateral and other credit protection for receivables
In order to secure the receivables of SVF2 LLC related to Equity Acquisition Amount and the premium thereon, all of the Equity
interests in SVF2 LLC held by MgmtCo 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, 2022,
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.
5. MgmtCo’s Equity interest in SVF2 LLC
The amount represents SVF2 LLC’s net assets attributable to MgmtCo (before deduction of receivables), which is included in“Third-party interests in SVF” in the condensed interim consolidated statement of financial position.
6. Management fee and performance-linked management fees to be charged to MgmtCo
The terms of the management fee and performance-linked management fee to be charged to MgmtCo are the same as those to be
charged to the Company as an Equity investor in SVF2 LLC.
7. Net balance at period end
Net balance at period end is the balance of receivables held by SVF2 LLC less MgmtCo’s Equity interest in SVF2 LLC.

91

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

(2) Transactions between LatAm Funds and related parties（Millions of yen）
Name of thecompany orindividual

Masayoshi Son(MASA USA
LLC (MgmtCo))

Nature ofrelationship

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

For the six-month
As ofperiod ended
September 30, 2022
September 30, 2022
Amount ofBalance attransaction
period end

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

3,4

The premium received
on SLA LLC’s
receivables

1,308($10 million)

MgmtCo’s Equity
5,6
interests in SLA LLC-

Net balance at period end(Receivables in SLA LLC less7
MgmtCo’s Equity interests in SLA LLC)

96,854($669 million)

360,413($417 million)

36,441($252 million)

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

92SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 30, 2022

contribution to LatAm Funds until June 30, 2021.
MgmtCo is entitled to make full or partial payment of its Equity Acquisition Amount at any point in time at its discretion 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 premiumof 3% per annum on the unpaid Equity Acquisition Amount until the unpaid amount is paid in full. “The premium received on
SLA LLC’s receivables” refers to the amount of such premium accrued in the current period. MgmtCo is also entitled to makefull or partial payment of the premium at any point in time, at its discretion on the same terms and conditions as Equity
Acquisition Amount.
Any distributable amounts from SLA LLC to MgmtCo are offset against the receivables at the time of the distribution notice andno distribution payments to MgmtCo are made until the SLA LLC’s receivables are paid in full.
4. Collateral and other credit protection for receivables
In order to secure the receivables of SLA LLC related to Equity Acquisition Amount and the premium thereon, all of the Equity
interests in SLA LLC held by MgmtCo 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 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, 2022,
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 enforcementof the collateral and personal guarantees by SLA LLC.
5. MgmtCo’s Equity interest in SLA LLC
The amount represents SLA LLC’s net assets attributable to MgmtCo (before deduction of receivables), which is included in“Third-party interests in SVF” in the condensed interim consolidated statement of financial position.
6. Management fee, performance-linked management fees and performance fees to be charged to MgmtCo
The terms of the management fee, performance-linked management fees and performance fee to be charged to MgmtCo are thesame as those to be charged to the Company as an Equity investor in SLA LLC.
7. Net balance at period end
Net balance at period end is the balance of receivables held by SLA LLC less MgmtCo’s Equity interest in SLA LLC.

93