This English translation of the financial report was prepared for reference purposes only and is qualified in its entirety by the original
Japanese version. The financial information contained in this report is derived from our unaudited consolidated financial statements
appearing in item 3 of this report.

SoftBank Group Corp.
Consolidated Financial Report
For the Three-month Period Ended June 30, 2019 (IFRS)Tokyo, August 7, 20191.

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)

OperatingincomeIncomebefore incometax

Net income

Net income
Total
attributable tocomprehensive
owners of theincomeparentAmountAmountAmountAmountNet sales
Amount

%

%

%

%

%

Amount%Three-month period ended¥2,336,397 2.8 ¥688,816 (3.7) ¥1,682,344 194.0 ¥1,177,479 258.9 ¥1,121,719 257.6 ¥747,172 139.8
June 30, 2019
Three-month period ended¥2,272,783 4.0 ¥714,993
June 30, 201849.2 ¥572,304 637.8 ¥328,120

Basic earnings per
share (Yen)

Diluted earnings per
share (Yen)Three-month period ended
June 30, 2019¥534.89¥532.09

Three-month period ended
June 30, 2018

¥140.77¥140.07974.4 ¥313,687-¥311,528 33.4

Note:
The Company conducted a share split at a ratio of two-for-one effective June 28, 2019. “Basic earnings per share” and “Diluted
earnings per share” are calculated assuming that the share split was conducted at the beginning of the previous fiscal year.

(2) Financial Position2.

Total assets

Total equity

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

As of June 30, 2019¥36,586,961¥9,445,332¥8,187,563

22.4

As of March 31, 2019

¥36,096,476¥9,009,204¥7,621,481

21.1

Dividends
Dividends per shareFirst quarter
Fiscal year ended
March 31, 2019
Fiscal year ending
March 31, 2020
Fiscal year ending
March 31, 2020
(Forecasted)

Second quarter

Third quarter

Fourth quarter

Total

(Yen)

(Yen)

(Yen)

(Yen)

(Yen)

-

22.00

-

22.00

44.00

22.00

-

22.00

44.00

-

Notes:
1. Revision of the latest forecasts on the dividends: No
2. The Company conducted a share split at a ratio of two-for-one effective June 28, 2019. The dividend for the fiscal year ended
March 31, 2019 is actual dividend amount before the share split.

* 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 thecapital and net assets for those companies is not available. Therefore, Cabinet Office Ordinance on Disclosure of
Corporate Affairs, etc. Article 19, Paragraph (10), Item (i) is used to determine whether the companies are thespecified subsidiaries.
The applicability of Cabinet Office Ordinance on Disclosure of Corporate Affairs, etc. Article 19, Paragraph (10),Item (i) is determined based on the percentage of total amount of purchase amount to SoftBank Group Corp. anddividend 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: Yes[2] Changes in accounting policies other than those in [1]: No[3] Changes in accounting estimates: Yes
Please refer to page 29 “(1) Changes in Accounting Policies” and “(2) Changes in Accounting Estimates” under “2.
Notes to Summary Information” for details.
(3) Number of shares issued (common stock)[1] Number of shares issued (including treasury stock):

As of June 30, 2019:2,089,814,330 shares
As of March 31, 2019:
2,201,320,730 shares[2] Number of shares of treasury stock:
As of June 30, 2019:19,138,396 shares
As of March 31, 2019:93,653,848 shares[3] Number of average shares outstanding during three-month period (April-June):
As of June 30, 2019:
2,083,065,885 shares
As of June 30, 2018:
2,178,995,644 shares
Note:
The Company conducted a share split at a ratio of two-for-one effective June 28, 2019. “Number of shares issued,” “Numberof shares of treasury stock,” and “Number of average shares outstanding during three-month period” are calculated assumingthat the share split was conducted at the beginning of the previous fiscal year.

* This condensed interim consolidated financial report is not subject to interim review procedures by certified public
accountants or an audit firm.
* Note to forecasts on the consolidated results of operations and other items
Descriptions regarding the future are estimated based on the information that the Company is able to obtain at the present
point in time and assumptions which are deemed to be reasonable. However, actual results may be different due to various
factors.
On August 7, 2019 (JST), the Company will hold an earnings results briefing for the media, institutional investors, andfinancial institutions. This earnings results briefing will be broadcast live on the Company’s website in both Japanese andEnglish at https://group.softbank/en/corp/irinfo/presentations/. The Data Sheet will also be posted on the website on thesame day at the same site.

SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2019

(Appendix)

Contents
1. Results of Operations ................................................................................................................................................... P. 3
(1) Overview of Results of Operations ........................................................................................................................ P. 3
a. Consolidated Results of Operations ................................................................................................................... P. 4
b. Results by Segment ........................................................................................................................................... P. 8(a) SoftBank Vision Fund and Delta Fund Segment ........................................................................................... P. 9(b) SoftBank Segment ....................................................................................................................................... P. 13(c) Sprint Segment ............................................................................................................................................ P. 14(d) Arm Segment .............................................................................................................................................. P. 16(e) Brightstar Segment ...................................................................................................................................... P. 19(f) Other ............................................................................................................................................................ P. 19(2) Overview of Financial Position ............................................................................................................................ P. 20(3) Overview of Cash Flows ...................................................................................................................................... P. 26(4) Forecasts ............................................................................................................................................................... P. 28
2. Notes to Summary Information ............................................................................................................................... P. 29(1) Changes in Accounting Policies ........................................................................................................................ P. 29(2) Changes in Accounting Estimates ..................................................................................................................... P. 29
3. Condensed Interim Consolidated Financial Statements and Primary Notes ............................................................ P. 30(1) Condensed Interim Consolidated Statement of Financial Position .................................................................... P. 31(2) Condensed Interim Consolidated Statement of Income and Condensed Interim Consolidated Statement ofComprehensive Income ..................................................................................................................................... P. 33(3) Condensed Interim Consolidated Statement of Changes in Equity ................................................................... P. 35(4) Condensed Interim Consolidated Statement of Cash Flows .............................................................................. P. 39(5) Significant Doubt about Going Concern Assumption ....................................................................................... P. 41(6) Notes to Condensed Interim Consolidated Financial Statements ...................................................................... P. 41
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 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 abbreviations indicates the respective company and its subsidiaries, if any.
SoftBank Vision Fund
SoftBank Vision Fund L.P. and its alternative investment vehicles
Delta FundSB Delta Fund (Jersey) L.P.
SBIA
SB Investment Advisers (UK) Limited
SprintSprint Corporation
Arm
Arm Limited
Alibaba
Alibaba Group Holding Limited
The first quarter
Three-month period ended June 30, 2019
The first quarter-end
June 30, 2019
The fiscal year
Fiscal year ending March 31, 2020
The previous fiscal year
Fiscal year ended March 31, 2019
The previous fiscal year-end
March 31, 20191

SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2019

Exchange Rates Used for Translations
Average rate for the quarter
Fiscal year ended March 2019

Fiscal year ending March 2020

Q1

Q2

Q3

Q4

Q1

¥108.71¥111.55¥112.83¥110.46¥110.00

March 31, 2019

June 30, 2019

USD / JPY

¥110.99¥107.79

GBP / JPY

¥144.98¥136.57

USD / JPY

Rates at the end of the period

Adoption of IFRS 16
In the first quarter, the Company adopted IFRS 16 “Leases.” Due to the adoption of IFRS 16, the cumulative impact of the
adoption was recognized as an adjustment to the balance of retained earnings on the date of adoption (April 1, 2019), andthe Company has not adjusted the presentation of information of the previous fiscal year. The Company does not adopt
IFRS 16 with respect to lease transactions of intangible assets. See “1. Significant accounting policies” under “(6) Notes
to Condensed Interim Consolidated Financial Statements” in “3. Condensed Interim Consolidated Financial Statements
and Primary Notes” for details.

Main impacts of adopting IFRS 16:
Consolidated Statement of Financial Position
On the date of adoption of IFRS 16, total assets of ¥1,336,695 million, total liabilities of ¥1,324,055 million, and total
equity of ¥12,640 million increased respectively. This was mainly due to the recording of right-of-use assets and leaseliabilities related to operating leases, which were previously accounted for as leases.

Consolidated Statement of Income
The expenses related to operating leases, recorded as right-of-use assets and lease liabilities on the date of the adoption,
are recorded as depreciation and interest expenses instead of lease expenses as recorded previously.

2SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2019

1. Results of Operations(1) Overview of Results of Operations
1. Highlights of results
 Operating income: ¥688.8 billion (decreased 3.7% yoy)
- Operating income from SoftBank Vision Fund and Delta Fund was ¥397.6 billion, mainly attributable to an
unrealized valuation gain of ¥408.5 billion, reflecting an increase in the fair values of OYO and its affiliate,
Slack, Doordash,1 and other investments.
- Decrease of ¥156.8 billion in the Arm segment was mainly due to a one-time gain recorded in the same
period of the previous fiscal year, following Arm’s China business becoming an associate from a subsidiary
due to the establishment of a joint venture.
 Net income attributable to owners of the parent: ¥1,121.7 billion (increased 257.6% yoy)
- Gain relating to settlement of variable prepaid forward contract using Alibaba shares of ¥1,218.5 billion;
impact on income was ¥856.8 billion, net of the ¥(361.8) billion impact on income taxes caused by a reversalof deferred tax assets.
- Finance cost of ¥(153.8) billion*- Changes in third-party interests in SoftBank Vision Fund and Delta Fund of ¥(184.5) billion*: increased due
to a higher gain on investments.
*recorded as a cost for the first quarter

2. Highlights of operations
 SoftBank Vison Fund
- SoftBank Vision Fund: held 81 investments as of the first quarter-end. During the first quarter, two investees,
Uber and Slack, became publicly listed issuers. WeWork and CloudMinds have filed documents related toinitial public offerings.
- Announced “SoftBank Vision Fund 2” in July 2019.
 Merger of Sprint and T-Mobile: received approval with conditions from the U.S. Department of Justice in July
2019; moving the merger one step closer to closing.
 SoftBank Corp. made Yahoo Japan Corporation a subsidiary.

3SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2019a. Consolidated Results of Operations(Millions of yen)Three months ended June 30
2018

2019

Change2,272,783

2,336,397

63,614

2.8% A

475,049

291,186(183,863)(38.7%) B

239,944397,630

157,686

65.7% COperating income

714,993

688,816(26,177)(3.7%)

Finance cost(148,467)(153,846)(5,379)3.6% D

Income on equity method investments

37,705

90,11552,410139.0% E

Foreign exchange gain (loss)

12,925(6,506)(19,431)-

Derivative loss
Gain relating to settlement of variable prepaid forward contract using Alibaba shares(54,080)(7,672)

46,408- F-

1,218,527

1,218,527- G*1

Net sales
Operating income (excluding income from
SoftBank Vision Fund and Delta Fund)
Operating income from SoftBank Vision
Fund and Delta Fund

Change %Gain from financial instruments at FVTPL
Change in third-party interests in SoftBank
Vision Fund and Delta Fund*2

94,542

27,496(67,046)(70.9%)(72,889)(184,488)(111,599)

153.1%

Other non-operating income (loss)(12,425)

9,902

22,327-572,304

1,682,344

1,110,040

194.0%(244,184)(504,865)(260,681)

106.8% H

Net income

328,120

1,177,479

849,359258.9%Net income attributable to owners of the parent

313,687

1,121,719

808,032

257.6%

Total comprehensive income
Comprehensive income attributable to ownersof the parent

311,528

747,172435,644139.8%

279,616

706,799

427,183

152.8%

Income before income tax
Income taxes

Notes:
1. Indicates gain and loss arising from changes in the fair values of investments held by the Company outside of SoftBank Vision
Fund and Delta Fund.
2. Indicates the sum of distributions to third-party investors in proportion to their interests in fixed distributions and performancebased distributions. The distributions are based on the gain and loss on investments at both funds, net of management and performance fees payable to SBIA, the Company’s wholly owned subsidiary and manager of SoftBank Vision Fund, and operating andother expenses of the funds. See “(2) Third-party interests in SoftBank Vision Fund and Delta Fund” under “3. SoftBank Vision
Fund and Delta Fund business” in “(6) Notes to Condensed Interim Consolidated Financial Statements” in “3. Condensed Interim
Consolidated Financial Statements and Primary Notes” for details.

4SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2019

The following is an overview of main components and components that are noteworthy for their rates of change
and reasons for changes.
A Net Sales
Net sales increased in the SoftBank, Sprint, and Arm segments.
B Operating Income (excluding Income from SoftBank Vision Fund and Delta Fund)
Segment income improved ¥16,479 million in the SoftBank segment and ¥4,097 million in the Brightstar segment.
However, segment income deteriorated ¥34,735 million in the Sprint segment, ¥156,763 million in the Arm segment,and ¥14,298 million in the Other segment. Segment income of the Arm segment in the same period of the previous
fiscal year included gain relating to loss of control over subsidiaries of ¥161,347 million, which was recognized as aresult of Arm’s Chinese subsidiary becoming a joint venture.

C Operating Income from SoftBank Vision Fund and Delta Fund
Unrealized gain on valuation of investments of ¥408,514 million was recorded, reflecting an increase in the fairvalues of investments including Oravel Stays Private Limited (“OYO”) and its affiliate, Slack Technologies, Inc.
(“Slack”), and Doordash, Inc. (“Doordash”). 1 See “(a) SoftBank Vision Fund and Delta Fund Segment” under “b.
Results by Segment” for details.

As a result of B and C, operating income decreased ¥26,177 million (3.7%) year on year, to ¥688,816 million.

D Finance Cost
Interest expenses increased ¥11,004 million at Sprint, mainly due to the adoption of IFRS 16. In addition, interest
expenses increased ¥8,094 million at SoftBank Corp. but decreased ¥9,786 million at SoftBank Group Corp.2 Thiswas mainly because SoftBank Corp. made borrowings through a senior loan of ¥1,600 billion in August 2018 in
preparation for listing and used the entire amount for repayment of its borrowings from SoftBank Group Corp., which
in turn used the entire amount to partially repay its own senior loan.

E Income on Equity Method Investments
Of the income on equity method investments for the first quarter, income on equity method investments related to
Alibaba increased ¥56,365 million (172.1%) year on year, to ¥89,114 million. This was mainly attributable to a gainrecorded for its financial instruments at FVTPL due to an increase in the fair values.

F Derivative Loss
Derivative loss of ¥21,371 million was recorded in the same period of the previous fiscal year in relation to a collartransaction embedded in a variable prepaid forward contract for Alibaba shares.

G Gain Relating to Settlement of Variable Prepaid Forward Contract Using Alibaba Shares
In June 2019, West Raptor Holdings, LLC (“WRH LLC”), the Company’s wholly owned subsidiary, delivered 73
million American Depositary Shares of Alibaba to Mandatory Exchangeable Trust (the “Trust”) in settlement of the5SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2019

sale of Alibaba shares by a variable prepaid forward contract. This contract was entered into between WRH LLC andthe Trust in June 2016 as part of the Company’s series of transactions to monetize a portion of its Alibaba holding.
As a result, gain relating to settlement of sale of variable prepaid forward contract using Alibaba shares was recorded.

Mainly as a result of B through G, income before income tax increased ¥1,110,040 million (194.0%) year on
year, to ¥1,682,344 million.

H Income Taxes
Deferred tax assets of ¥361,752 million was reversed following the settlement of the variable prepaid forward contract for Alibaba shares by WRH LLC in June 2019. These deferred tax assets were the total of i) deferred tax assets
for the temporary difference between the carrying amount on the accounting base and the tax base of such Alibaba
shares and ii) deferred tax assets recorded at the previous fiscal year-end for derivative liabilities related to the collartransaction embedded in the prepaid forward contract for Alibaba shares.

Mainly as a result of B through H, net income attributable to owners of the parent increased ¥808,032 million (257.6%) year on year, to ¥1,121,719 million.

For a breakdown of the finance costs and basic information used to calculate income on equity method investments related to
Alibaba, see the Data Sheet in “Materials” under “Earnings Results Briefing” on the Company’s website athttps://group.softbank/en/corp/irinfo/presentations/.

6

SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2019

Issuance of New Shares by Yahoo Japan Corporation through Third-Party Allotment to SoftBank Corp. andAcquisition by Yahoo Japan Corporation of Its Own Shares through Tender Offer
On June 27, 2019, Yahoo Japan Corporation issued 1,511,478,050 new shares for ¥456.5 billion to SoftBank Corp.
through a third-party allotment (the “Third-Party Allotment”). Yahoo Japan Corporation also implemented a tender offer
for its own shares from May 9, 2019 to June 5, 2019 (the “Tender Offer”), and SoftBank Group Corp. accepted theTender Offer and tendered its holding of common shares of Yahoo Japan Corporation, held by its wholly owned
subsidiary SoftBank Group Japan Corporation (“SBGJ”). As a result, 1,792,819,200 of these shares (equivalent to¥514.5 billion) were sold to Yahoo Japan Corporation on June 27, 2019.
As a result of the Third-Party Allotment and the Tender Offer (collectively, the “Transactions”), the Company’sownership in common shares of Yahoo Japan Corporation became 45.52%*1 (indirect holdings including 44.64% heldby SoftBank Corp.), compared with 48.16%*2 (indirect holdings including 12.08% held by SoftBank Corp.) as of theprevious fiscal year-end. As a result of the Transactions, Yahoo Japan Corporation became a subsidiary of SoftBank
Corp., which was deemed to effectively control the company considering its dispatch of officers to Yahoo Japan
Corporation as board members. Further, Yahoo Japan Corporation remains a subsidiary of the Company in the
Company’s consolidated financial statements. The Company’s economic interests in Yahoo Japan Corporation
decreased from 44.11% to 30.55% in accordance with an increase in non-controlling interests.
Notes:
1. This indicates a ratio to 4,760,875,065 shares, an amount derived by subtracting the number of treasury shares as of June 30,
2019 (1,902,273,100 shares) from the number of shares issued by Yahoo Japan Corporation as of June 30, 2019 (6,663,148,165
shares), rounded to two decimal places. The same applies to any reference to the holding ratio of Yahoo Japan Corporation
shares after the Transactions.
2. This indicates a ratio to 5,083,750,615 shares, an amount derived by subtracting the number of treasury shares as of March 31,
2019 (67,879,000 shares) from the number of shares issued by Yahoo Japan Corporation as of March 31, 2019 (5,151,629,615
shares), rounded to two decimal places. The same applies to any reference to the holding ratio of Yahoo Japan Corporation
shares as of March 31, 2019.

(Reference)
Before the Transactions (as of March 31, 2019)

After the Transactions

7

SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2019b. Results by Segment
The Company’s reportable segments are the components of its business activities for which decisions on resource allocation and assessment of performance are made. In the first quarter, the Company revised its segment classifications after
SoftBank Corp. made Yahoo Japan Corporation a subsidiary. There are now five reportable segments: SoftBank Vision
Fund and Delta Fund, SoftBank, Sprint, Arm, and Brightstar. The following is a summary of the reportable segments.
The main businesses and core companies of each reportable segment are as follows:
Segments
Main businesses

Core companies

Reportable segments
SoftBank Vision Fundand Delta Fund

· Investment activities by SoftBank Vision Fund
· Investment activities by Delta Fund

SoftBank Vision Fund L.P.
SB Delta Fund (Jersey) L.P.

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

SoftBank Corp.
Yahoo Japan Corporation

Sprint· Provision of mobile communications services in the U.S.
· Sale and lease of mobile devices and sale of accessories in the
U.S.
· Provision of fixed-line telecommunications services in the U.S

Sprint Corporation

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

Arm Limited

Brightstar· Distribution of mobile devices overseas

Brightstar Corp.

· Alternative investment management business

Fortress Investment Group LLC· Fukuoka SoftBank HAWKS-related businesses· Smartphone payment businessFukuoka SoftBank HAWKS Corp.
PayPay Corporation

Other

Note: Income of reportable segments is calculated as follows.
SoftBank Vision Fund and Delta Fund segment:
Segment income = gain and loss on investments at SoftBank Vision Fund and Delta Fund − operating expenses
Segments excluding the SoftBank Vision Fund and Delta Fund segment:
Segment income = net sales − operating expenses (cost of sales + selling, general and administrative expenses) ± other operating
income and loss, for each segment

For historical principal operational data of each segment, their calculation methods, and definitions of terms, see the Data Sheetin “Materials” under “Earnings Results Briefing” on the Company’s website athttps://group.softbank/en/corp/irinfo/presentations/.

8SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2019(a) SoftBank Vision Fund and Delta Fund Segment
1. Segment income of ¥397.6 billion
 Unrealized gain on valuation of investments of ¥408.5 billion: fair values of OYO and its affiliate, Slack,
Doordash,1 and other investments increased.
2. Progress of investments at SoftBank Vision Fund
 Held 81 investments as of the first quarter-end at cost totaling $66.3 billion, with fair value amounting to$82.2 billion (excluding exited investments).3
 During the first quarter, two investees, Uber and Slack, became publicly listed issuers. Two investees,
WeWork and CloudMinds, have filed documents related to initial public offerings.
3. Announced “SoftBank Vision Fund 2” in July 2019
(Millions of yen)Three months ended June 30
2018
2019

ChangeChange %Gain and loss on investments at SoftBank Vision
Fund and Delta Fund
Operating expenses

247,211(7,267)414,419(16,789)

167,208(9,522)67.6%
131.0%

Segment income

239,944397,630

157,686

65.7%

OVERVIEWSoftBank Vision Fund began its operation in 2017. The fund aims to maximize returns from a medium- to long-term
perspective, through making large-scale investments in high growth potential companies that are leveraging AI, particularly in private companies with estimated corporate values of more than $1 billion, colloquially known as “unicorns.”
SoftBank Vision Fund is managed by SBIA, a wholly owned subsidiary of the Company established in the U.K.,
which is registered at the Financial Conduct Authority. The segment results include the results of the investment andoperational activities of SoftBank Vision Fund and Delta Fund, which is also managed by SBIA.
For details on the terms and conditions of distribution to limited partners in SoftBank Vision Fund and Delta Fund,and the terms and conditions of management fees and performance fees to SBIA, see “(2) Third-party interests in SoftBank Vision Fund and Delta Fund” and “(3) Management fees and performance fees to SBIA” under “3. SoftBank
Vision Fund and Delta Fund business” in (6) Notes to Condensed Interim Consolidated Financial Statements” in “3.
Condensed Interim Consolidated Financial Statements and Primary Notes.”

9SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2019

Outline of Funds in the Segment
As of June 30, 2019
Major limited partnership
Total committed capital(Billions of U.S. dollars)

SoftBank Vision Fund

Delta Fund

SoftBank Vision Fund L.P.

SB Delta Fund (Jersey) L.P.

97.0

*1

6.0 *1

General partner

SoftBank Group Corp.: 33.1 *2Third-party investors: 63.9 *1
SVF GP (Jersey) Limited(The Company’s wholly owned overseas
subsidiary)

SoftBank Group Corp.: 4.4
Third-party investors: 1.6 *1
SB Delta Fund GP (Jersey) Limited(The Company’s wholly owned overseas
subsidiary)

Investment period

Until November 20, 2022 (in principle)

Until November 20, 2022 (in principle)

Minimum fund life

Until November 20, 2029 (in principle)

Until September 27, 2029 (in principle)

Notes:
1. A portion of the capital committed by third-party investors in both SoftBank Vision Fund and Delta Fund has been committed inconsideration of the total capital committed for both such funds; hence, the total committed capital and remaining committed
capital for each separate fund will change according to the status of contribution made by third-party investors in each such fund.
2. The Company’s committed capital to SoftBank Vision Fund includes approximately $8.2 billion of an obligation satisfied by using
Arm Limited shares (all said shares have been contributed by the previous fiscal year-end) and $5.0 billion earmarked for use in
an incentive scheme related to SoftBank Vision Fund.

FINANCIAL RESULTS(Millions of yen)Three months ended June 30
2018
2019
Gain and loss on investments at SoftBank Vision Fundand Delta Fund
Unrealized gain and loss on valuation of investments
Interest and dividend income from investments
Operating expenses

ChangeChange %247,211245,802
1,409(7,267)414,419
408,514
5,905(16,789)

167,208
162,7124,496(9,522)

67.6%
66.2%
318.9%
131.0%

Segment income
Finance cost (interest expenses)
Foreign exchange gain and loss
Derivative gain and loss
Change in third-party interests in SoftBank Vision Fundand Delta Fund
Other non-operating income and loss

239,944(5,031)(40)
1,197

397,630(1,668)232-

157,686
3,363
272(1,197)65.7%(66.8%)-(72,889)(276)(184,488)
591(111,599)
867

153.1%-

Income before income tax

162,905

212,297

49,39230.3%

Segment income
Segment income was ¥397,630 million, compared with income of ¥239,944 million in the same period of the previous
fiscal year. This was mainly attributable to unrealized gain on valuation of investments of ¥408,514 million. Of this,unrealized gain on valuation of investments totaling ¥603,840 million was recognized due to the increase in the fairvalues of investments in OYO and its affiliate, Slack, Doordash,1 and others. Conversely, unrealized loss totaling¥195,326 million was recorded for the decrease in the fair values of investments in Uber1 and others.

10SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2019

For investments in publicly listed companies, quoted prices are used to measure fair value. For investments in privately held companies, recent third-party transactions, market approach, cost approach, and/or income approach areused in the valuation.
For details on fair value measurement, see “SoftBank Vision Fund Business Model and Accounting Treatment” on the Company’s website at https://cdn.group.softbank/en/corp/set/data/irinfo/presentations/analyst/pdf/2018/investor_20181107_02.pdf.

Capital Deployment
As of June 30, 2019
(Billions of U.S. dollars)

Total
Committed capital (A)SoftBank Vision Fund
Delta FundContributions from limited partners4
SoftBank Vision Fund
Delta Fund

Third-party
investors

97.0
6.0

33.1 *1
4.4

63.9
1.6

56.2
5.2

19.6
3.8 5

36.6
1.4

(2.5)

(0.9)

(1.6)

40.8
0.8

13.5
0.6

27.3
0.2

(B)

Non-recallable contribution6 included in (B)SoftBank Vision Fund
Remaining committed capital
SoftBank Vision Fund
Delta Fund7

The Company(C) = (A) - (B)Note: Investment in Xiaoju Kuaizhi Inc. (“DiDi”), which was held by Delta Fund, has been sold to SoftBank Vision Fund in the
fourth quarter of the previous fiscal year (the three-month period ended March 31, 2019) via promissory note. As the promissory
note is expected to be settled in the second quarter of the fiscal year (three-month period ending September 30, 2019), thistransaction has not been reflected in the capital deployment presented above as of the first quarter-end.
Note:
1. The Company’s committed capital to SoftBank Vision Fund includes approximately $8.2 billion of an obligation satisfied by using
Arm Limited shares (all said shares have been contributed by the previous fiscal year-end) and $5.0 billion earmarked for use in
an incentive scheme related to SoftBank Vision Fund.

Portfolio
As of June 30, 2019; excludes exited investments(Billions of U.S. dollars)
SectorConsumerEnterprise
FintechFrontier Tech
Health Tech
Real Estate & Construction
Transportation & Logistics
Total

Number ofinvestments

Acquisition cost

Fair value

Change

15
8
9
9
9
10
21
81

10.1
2.2
3.7
10.5
2.8
8.2
28.8
66.3

14.8
3.6
4.2
11.2
4.7
10.2
33.5
82.2

4.7
1.4
0.5
0.7
1.9
2.0
4.7
15.9

Note: SoftBank Vision Fund made some investments through investment holding entities that are subsidiaries, but not wholly owned
subsidiaries, of the fund. All investments made through such investment holding entities are calculated as investments madeby SoftBank Vision Fund. As of the first quarter-end, a wholly owned subsidiary of the Company is a shareholder of suchholding entities. With regard to the investments held by such investment holding entities, all the interests of this wholly owned

11SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2019subsidiary were sold or agreed to be sold to SoftBank Vision Fund in the first quarter. The acquisition cost of $277 million andfair value of $370 million of the holdings that agreed to be sold to SoftBank Vision Fund were included in the total acquisition
cost and fair value presented above.

New investments in the first quarterIn the first quarter, SoftBank Vision Fund made investments totaling $6.2 billion, including follow-on investments.
With regard to the investments initially acquired by the Company, the investments in ANI Technologies Private Limited (Ola) and an affiliate of WeWork Companies Inc. (“WeWork”), with total acquisition cost of $696 million, havebeen agreed to be sold to SoftBank Vision Fund for $950 million in total.
For a complete list of SoftBank Vision Fund’s portfolio and sector changes for each portfolio company, if any, see the Data
Sheet in “Materials” under “Earnings Results Briefing” on the Company’s website athttps://group.softbank/en/corp/irinfo/presentations/.

Investments Acquired from Sale by the Company
In addition to direct purchase, some investments of SoftBank Vision Fund are acquired from sale by the Company,
but only if they are in accordance with the fund’s investment eligibility criteria. There are two types of investmentsthat could be sold to SoftBank Vision Fund: (A) Investments that were acquired by the Company on the premise ofoffering the investment to SoftBank Vision Fund and that were in accordance with the investment eligibility criteriaof the fund at the time of acquisition (“Bridge Investments”) and (B) other investments. Examples of (B) include
investments that were made without the premise of offering the investment to SoftBank Vision Fund at the time ofacquisition, or, investments that were made with the premise of offering the investment to the fund but were not inaccordance with the investment eligibility criteria of the fund at the time of acquisition and therefore require consent
from the limited partners for selling to the fund.
The Company recognizes that the transfer of such investments is agreed, at the timing when consent from theinvestment committee and other bodies (and certain limited partners if applicable) at SoftBank Vision Fund andapprovals from relevant regulatory authorities are obtained. Sales of these investments are made at the fair value atthe time the Company made its decision at its applicable authority to offer the transfer, and this value will be theacquisition cost for SoftBank Vision Fund. These investments are presented as investments of SoftBank Vision Fundin the Company’s consolidated financial statements, after the Company recognizes that the transfer is agreed.
As for investments transferred during the fiscal year, the differences between the carrying amounts at the beginningof the fiscal year (or the acquisition cost during the fiscal year) and the sale values were recorded in non-operating
income of the Company’s consolidated statement of income, while the changes in fair values from the sale values(the acquisition value for SoftBank Vision Fund) were recorded in segment income of the SoftBank Vision Fund andDelta Fund segment. The sale transactions for the transfer between the Company and SoftBank Vision Fund havebeen eliminated as inter-group transactions in the Company’s consolidated financial statements.
Portfolio of Delta FundAs a result of the sale of investment in DiDi to SoftBank Vision Fund, there were no investments held by Delta Fund asof the first quarter-end.

12

SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2019(b) SoftBank Segment (including Previous Yahoo Japan Segment)
1. Achieved higher net sales and segment income, driven by expansion of telecom service customer base.
2. SoftBank Corp. made Yahoo Japan Corporation a subsidiary in June 2019.
(Millions of yen)Three months ended June 30
2018
2019
Net sales
Segment income

ChangeChange %1,096,204

1,164,586

68,382

6.2%

260,170276,649

16,4796.3%

Note: To reflect Yahoo Japan Corporation becoming a subsidiary of SoftBank Corp., retrospective adjustments have been made fornet sales and segment income from April 1, 2018.

FINANCIAL RESULTS
Both net sales and segment income increased year on year, driven by steady growth in the telecommunications business,
especially services for retail consumers. Net sales growth was attributable to an increase in telecom service revenue
from services for retail consumers, which is the largest revenue and profit source, led by steady expansion in the customer base. As an example of this expansion, the cumulative number of smartphone subscribers with the three brands –SoftBank, Y!mobile, and LINE MOBILE – increased 370,000 from the previous fiscal year-end to 22.45 million, and thecumulative number of subscribers to SoftBank Hikari, a fiber-optic service, increased 130,000 from the previous fiscal
year-end to 6.05 million. Segment income also increased as a result of increased net sales, especially telecom service
revenue that contributed to income.
As mentioned in “Issuance of New Shares by Yahoo Japan Corporation through Third-Party Allotment to SoftBank
Corp. and Acquisition by Yahoo Japan Corporation of Its Own Shares through Tender Offer,” Yahoo Japan Corporation
became a subsidiary of SoftBank Corp. as of June 27, 2019. Accordingly, the results of Yahoo Japan Corporation arepresented retroactively as part of the Softbank segment from April 1, 2018. Operating income of Yahoo Japan Corporation in this segment decreased by 4.1% year on year. This was mainly due to an increase in sales promotion expenses
related to smartphone applications and commerce, and an increase in depreciation expenses as a result of aggressive
capital investment as the company moves towards becoming a data-driven company.

For more information on SoftBank Corp.’s financial results and business operations, please refer to its website athttps://www.softbank.jp/en/corp/ir/

13

SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2019(c) Sprint Segment
1. Merger with T-Mobile: received approval with conditions from the U.S. Department of Justice, moving themerger one step closer to closing.
2. Segment income decreased, mainly due to the impact from a one-time loss.
(Millions of yen)Three-month period ended June 30
2018
2019

ChangeChange %Net sales

883,242895,643

12,401

1.4%

Segment income

98,10863,373(34,735)(35.4%)

U.S. dollar-based results (IFRSs)
Net sales(Millions of U.S. dollars)

8,125

8,142

17

0.2%

902

576

(326)

(36.1%)

Segment income
FINANCIAL RESULTS (IN U.S. DOLLARS)Net sales were almost flat year on year, while segment income decreased. The decrease in segment income was mainly
due to a deterioration in other operating income and loss. Sprint concluded a sale and leaseback agreement for its head
office, including buildings and land, in the first quarter, and executed the agreement in July 2019. Consequently, thedifference between their carrying amounts and the fair values after deducting transaction costs were recorded as an
impairment loss for assets classified as held for sale.

Merger of Sprint and T-Mobile
On April 29, 2018, Sprint and T-Mobile US Inc. (“T-Mobile”) entered into a definitive agreement to merge in an allstock transaction (the “Transaction”). On July 26, 2019 (ET) the Antitrust Division of the U.S. Department of Justice(DOJ) has announced its approval, subject to the terms of a proposed consent decree filed by the DOJ.
The closing of the Transaction is still subject to further regulatory approvals, including approval from the Federal
Communications Commission (FCC) and other customary conditions. As of the filing date of consolidated financial
report for the first quarter, the expected closing date of the Transaction has not been determined. It is currently
anticipated that the final federal regulatory approval will be received in the three-month period ending September 30,
2019 and the Transaction will be permitted to close in the second half of the year.
Impact on the Company’s Consolidated Financial Results
The following is the impact of federal regulatory approvals on the Transaction and the closing of the Transaction on
the Company’s consolidated financial results.
Closing (merger date)

FCC & DOJ approvals
Sprint

The combined company

3

Subsidiary1

Discontinued operations

2

Net income/loss, assets and liabilities arepresented in one line, respectively

14

Associate

Revaluation gain/loss related tochange in scope of consolidation

SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2019

① Impacts of approvals from the FCC and DOJ on the Transaction
Starting from the date when the Transaction received approvals from the FCC and DOJ, in the Company’s
consolidated statement of income, Sprint’s net income and loss will be presented as “net income or loss fromdiscontinued operations” under discontinued operations, separately from continuing operations. Sprint’s net income
and loss for the fiscal year ended March 2019 will also be retrospectively revised and presented as “net income orloss from discontinued operations” under discontinued operations.
In the Company’s consolidated financial position, assets and liabilities of Sprint will be presented as assets andliabilities held for sale.
② Impacts of the closing of the Transaction
On the date when the Transaction is completed, the amount of the difference between the fair value of the shares of
the combined company and the consolidated carrying amount of Sprint at the time of the Transaction is planned tobe recorded as revaluation gain or loss related to change in scope of consolidation under net income or loss.
③ After the closing of the Transaction
After the date when the Transaction is completed, the combined company is expected to become an equity method
associate of the Company with an approximately 27.4% shareholding (fully-diluted base), and Sprint will no longer
be a subsidiary of the Company.

For more information on Sprint’s US GAAP-based financial results and business operations, please refer to its website
at: https://investors.sprint.com/

15

SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2019(d) Arm Segment
1. Net sales increased 10.6% yoy, segment income decreased ¥156.8 billion yoy Licensing revenue (U.S. dollar-based) increased 47.1% yoy. This was due to weaker license revenue in thesame period of the previous fiscal year, resulting from the delay in licensing activity related to the setting up
of Arm China.
 Royalties revenue (U.S. dollar-based) decreased 8.0% yoy with the continuation of the deterioration in
global business conditions in the semiconductor industry.
 Segment income decreased yoy, due to a one-time gain of ¥161.3 billion from setting up Arm China in thesame period of the previous fiscal year.
2. Steadily increasing R&D capability to drive long-term growth Arm announced a new family of processors developed for the next generation of smartphones.
 Marvell Technology Group Ltd. and Arm announced a strategic partnership to jointly invest to accelerate
the development of Arm-based server technology.
(Millions of yen)Three months ended June 30
2019
2018

ChangeChange %Net sales

41,53445,931

4,397

10.6%

Segment income

145,192(11,571)(156,763)-

Note: Segment income includes amortization expenses of ¥12,868 million for the first quarter and ¥13,578 million for the same
period of the previous fiscal year. These expenses are related to intangible assets recognized in the purchase price allocation
at the time of the acquisition of Arm.

OVERVIEW
Arm’s operations are primarily the licensing of semiconductor intellectual property (IP), including the designs of energyefficient microprocessors and associated technologies. Since becoming part of the Company, Arm has accelerated investment in R&D by hiring more engineers. With the expansion of its engineering capability, Arm can develop newtechnologies that will help it maintain or gain share in its existing markets and to expand into new markets.
Arm’s primary investment areas and main developments:
Mobile Computing
Opportunity: Arm already has over 95% share of the main chips in mobile devices and, over time, has beensuccessfully increasing royalties per chip.
The first quarter: Arm announced a family of processors which will help provide AI and 5G capabilities to thenext generation of smartphones due in 2020.
Infrastructure
Opportunity: Arm has a growing share in networking infrastructure and a nascent share in data center servers.
The first quarter: Marvell Technology Group Ltd and Arm announced a strategic partnership to accelerate thedevelopment of technology needed for cloud companies to deploy Arm-based servers.
Automotive
Opportunity: As vehicles become smarter, they require more computational capability. Arm is well positioned
to gain share by providing energy efficiency and Arm processor technology has already been
licensed by most companies that develop automotive chips.
IoT
Opportunity: For IoT to reach its full potential, it must be secure against hacking and robust against faults.
Arm has developed technology to secure and manage the data in IoT device networks.
The first quarter: Samsung Electronics Co., Ltd. and Arm demonstrated a new manufacturing process for IoT
chips.

16

SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2019

FINANCIAL RESULTS
Net sales in U.S. dollars
Net sales in this section are presented in U.S. dollars as Arm’s revenue is primarily based in U.S. dollars.
(Millions of U.S. dollars)

Fiscal year ended
March 31, 2019
Q3
Q4

Fiscal year ending
March 31, 2020
Q1

Q1

Q2

Technology licensing
Technology royalties
Software and services

85
261
35

124
285
47

125
305
56

213
247
53

125
240
53

yoy
Change40(21)
18

Total net sales

381

456

486

513

418

37

Change %47.1%(8.0%)
51.4%
9.7%

Net sales increased 9.7% year on year on a U.S. dollar basis in the first quarter. This was due to weaker license revenue
in the same period of the previous fiscal year caused by a temporary delay in licensing activity, following the establishment of a joint venture for Arm’s China business (“Arm China”).
The ongoing weakness in the semiconductor industry and the risk from trade disputes and sanctions against specificcompanies remain today and could continue for some time. For the fiscal year, these factors could impact both Arm’s
license and software and service revenues, as semiconductor companies choose to delay licensing new processors, androyalty revenues, as OEMs sell fewer products or manage chip inventory levels more carefully. Once normal market
conditions return, Arm expects that its business will continue to grow.
・ Technology Licensing
License revenue increased 47.1% year on year on a U.S. dollar basis. This year on year growth was mainly due to
weakness in the same period of the previous fiscal year due to the establishment of Arm China, which resulted in a
temporary delay in licensing activity. In this context, license revenue in the first quarter was at a similar level to thelicense revenue in prior quarters and reflects the recent deterioration of global business conditions in the semiconductor
industry.
・ Technology Royalties
Royalty revenue decreased 8.0% year on year on a U.S. dollar basis. This was due to a deceleration in semiconductor
demand globally including a weakening in global smartphone demand, especially in China, combined with a generalslowdown in global chip sales. In the medium to long term, overall growth of royalty revenue is expected to increase as
Arm gains share in secular growth markets such as networking, automotive, and IoT.
・ Software and Services
Software and services revenue increased 51.4% year on year on a U.S. dollar basis, mainly due to the acquisition ofTreasure Data, Inc. during the second quarter of the previous fiscal year (three-month period ended September 30, 2018).

Segment Income
Segment income decreased year on year. This was due to recognizing gain relating to the loss of control over subsidiariesof ¥161,347 million as other operating income in the same period of the previous fiscal year, as a result of Arm China
becoming an associate accounted for using the equity method from a subsidiary. On the other hand, although Arm is

17SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2019

continuing to increase its R&D capacity, which includes hiring more R&D engineers and support staff, operating expenses (cost of sales and selling, general and administrative expenses) decreased ¥187 million year on year, due to astronger yen against the British pound. Arm’s head count increased net 77 people (1.3%) from the previous fiscal yearend.
Arm will continue to strengthen its R&D capacity to build the technologies needed to meet the opportunities presented
by machine learning, IoT, and autonomous vehicles, among others. In the meantime, to ensure that ROI is maximized,
it will also continuously evaluate the mix of R&D projects in which it is investing, as well as the locations of theengineering teams.

OPERATIONS
Licensing
Licenses signed in
the first quarter

Cumulative number of licenses signed in
as of the first quarter-end

Classic (Arm7, Arm9, Arm11)-

452

Cortex-A

7367

Cortex-R

2

109

Cortex-M

19

556

Mali

-

187

Number of processor licenses signed

28

1,671

Breakdown by processor family

Note: Cumulative number of licenses signed only includes extant licenses that are expected to generate royalties. During the firstquarter, Arm undertook a review of licenses more than 10 years old, some of which are no longer expected to generate royalties.
This has consequently reduced the cumulative number of licenses signed by 51.

Arm signed 28 processor licenses during the first quarter, including two licenses for new technologies that Arm has not
yet announced, reflecting solid demand for Arm’s latest technology. The customers who signed licenses with Arm in thefirst quarter intend to use Arm technology in a very broad range of end markets, including AI applications, consumer
electronics, networking equipment, smartphones, and virtual reality headsets.
Royalty Units8
Jan 1 toMar 31

Apr 1 toJun 30

20182019

Jul 1 toSep 30

Oct 1 toDec 31

Jan 1 toMar 31

Royalty units as reported by Arm’s licensees (in billions)

Growth rate (yoy)

5.5

5.6

6.2

5.6

4.8

17.0%

9.8%

8.8%

(3.4%)(12.7%)

Arm’s licensees reported shipments of 4.8 billion Arm-based chips for the three-month period ended March 31, 2019.
This was down 12.7% year on year and reflected the slowdown in the growth of smartphones combined with the overall
weakness in the semiconductor industry.
For more information about Arm, its business, and its technology, please refer to its website at:https://www.arm.com/company/investors

18

SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2019(e) Brightstar Segment(Millions of yen)Three months ended June 30
2018
2019

ChangeChange %Net sales

253,828

233,370(20,458)(8.1%)

Segment income(5,345)(1,248)4,097-(f) Other(Millions of yen)Three months ended June 30
2018
2019

ChangeChange %Net sales

53,68042,898(10,782)(20.1%)

Segment income(7,924)(22,222)(14,298)-

Operating loss of ¥16,219 million was recorded at PayPay Corporation, which is engaged in smartphone payment services in Japan. This was mainly due to large-scale marketing promotions aimed at gaining users and driving service
usage, and continued proactive measures to increase the number of stores where its services can be used.

Results of PayPay Corporation Included in Other Segment(Millions of yen)Three months ended June 30
2018
2019
Net sales
Operating income

ChangeChange %

-

540

540

-

(66)

(16,219)(16,153)-

19

SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2019(2) Overview of Financial Position
1. Settlement of sale of Alibaba shares by variable prepaid forward contract
Following the settlement, assets classified as held for sale decreased ¥224.2 billion, financial liabilities relating tosale of shares by variable prepaid forward contract decreased ¥730.6 billion, and derivative financial liabilities
decreased ¥749.8 billion from the previous fiscal year-end.
2. Balance of investments from SoftBank Vision Fund of ¥8.1 trillion
3. Retired treasury stock of 55.75 million shares (5.07% of total number of shares issued before the retirement)(Millions of yen)March 31, 2019

June 30, 2019

ChangeChange %Total assets

36,096,476

36,586,961

490,485

1.4%

Total liabilities

27,087,272

27,141,629

54,3570.2%

Total equity

9,009,204

9,445,332

436,128

4.8%

Note: Due to the adoption of IFRS 16, total assets increased ¥1,336,695 million, total liabilities increased ¥1,324,055 million, andtotal equity increased ¥12,640 million at the beginning of the fiscal year.

(a) Assets(Millions of yen)March 31, 2019

June 30, 2019

ChangeCash and cash equivalents

3,858,518

2,932,541(925,977)

Trade and other receivables

2,339,977

2,284,861(55,116)

Other financial assets

203,476

191,921(11,555)

Inventories

365,260

318,328(46,932)

Other current assets*1

766,556

872,762

106,206

Assets classified as held for sale

224,201

25,040(199,161)

Total current assets

7,757,988

6,625,453(1,132,535)

Property, plant and equipment

4,070,704

2,873,267(1,197,437)

B-

2,353,750

2,353,750

C

Goodwill

4,321,467

4,152,753(168,714)

Intangible assets

6,892,195

6,661,372(230,823)

384,076385,794

1,718

Investments accounted for using the equity method

2,641,045

2,504,162(136,883)

Investments from SoftBank Vision Fund andDelta Fund accounted for using FVTPL

7,115,629

8,081,137

965,508

E

Investment securities

924,614

1,214,948

290,334

F

Other financial assets

1,185,856

1,326,238

140,382

Deferred tax assets

586,943

193,336(393,607)

Other non-current assets

215,959

214,751(1,208)

Total non-current assets

28,338,488

29,961,508

1,623,020

Total assets

36,096,476

36,586,961

490,485

Right-of-use assets

Costs to obtain contracts

20

A

D

G

SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2019

Reasons for changes in primary components
Components

Main reasons for changes from the previous fiscal year-end

Current Assets
A Assets classified as held for sale

· Assets classified as held for sale were reduced by ¥224,201 million, due to thesettlement of a variable prepaid forward contract for Alibaba shares in June
2019.
· As Sprint concluded an agreement to sell its head office (including buildings
and land), those assets were reclassified from property, plant and equipment.

Non-current assets
B Property, plant and equipment· Capital expenditures for the 5G network increased at Sprint. Meanwhile, telecommunications equipment was regularly depreciated at SoftBank Corp.
· Due to the adoption of IFRS 16, leased assets of ¥1,157,008 million, previously classified as financing leases and recorded as property, plant and equipment, were reclassified as right-of-use assets at the beginning of the fiscal
year. This was mainly due to leased assets related to telecommunications
equipment for SoftBank Corp. being reclassified as right-of-use assets.

C Right-of-use assets· Due to the adoption of IFRS 16, right-of-use assets of ¥1,368,144 million
were newly recorded at the beginning of the fiscal year. This was mainly due
to newly recorded right-of-use assets for operating leases related to telecommunications equipment and property at Sprint and SoftBank Corp.
· Leased assets that had been included in property, plant and equipment werereclassified as right-of-use assets.

D Intangible assets

Sprint’s FCC licenses and Arm’s technologies decreased due to a stronger yen
against the U.S. dollar and the British pound.

E Investments from SoftBank
Vision Fund and Delta Fund
accounted for using FVTPL

In the first quarter, investments of $6.2 billion were made and the fair values ofinvestments increased. For details, see “(a) SoftBank Vision Fund and Delta
Vision Fund Segment” under “b. Results by Segment” in “(1) Overview of Results of Operations.”

F Investment securities

Wholly owned subsidiaries of the Company made investment in WeWork andother companies.

G Deferred tax assets

As a result of the settlement of a variable prepaid forward contract using
Alibaba shares, the corresponding deferred tax assets were reversed.

Note:
1. Other current assets as of the previous fiscal year-end and the first quarter-end included an expected refund of ¥422,648 million inwithholding income tax related to dividends paid by SBGJ to SoftBank Group Corp. in the previous fiscal year. This withholding
income tax was refunded in July 2019.

21

SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2019(b) Liabilities(Millions of yen)March 31, 2019

June 30, 2019

Change3,480,960

3,277,849(203,111)-

621,022621,022

Deposits for banking business

745,943774,891

28,948

Third-party interests in SoftBank Vision Fund andDelta Fund*2

29,677

147,625

117,948

1,909,608

1,752,907(156,701)

Derivative financial liabilities

767,714

27,612(740,102)

Other financial liabilities

10,84911,376527

Income taxes payables

534,906

77,075(457,831)

Provisions

43,68535,674(8,011)Other current liabilities

1,158,355

689,885(468,470)

Total current liabilities

8,681,697

7,415,916(1,265,781)

Interest-bearing debt*1

12,204,146

11,877,719(326,427)-

1,552,972

1,552,972

4,107,288

4,322,539

215,251

Derivative financial liabilities

130,545

136,144

5,599

Other financial liabilities

57,11565,474

8,359

Defined benefit liabilities

99,351

95,840(3,511)

Provisions

157,478

155,126(2,352)

1,391,072

1,364,942(26,130)

Other non-current liabilities

258,580

154,957(103,623)

Total non-current liabilities

18,405,575

19,725,713

1,320,138

Total liabilities

27,087,272

27,141,629

54,357

Interest-bearing debt*1*1

Lease liabilities

Trade and other payables*1

Lease liabilities

Third-party interests in SoftBank Vision Fund andDelta Fund*2

Deferred tax liabilities

A
B
C

Notes:
1. Due to the adoption of IFRS 16, lease liabilities of ¥1,449,326 million, for operating leases that were previously accounted for asleases, were newly recorded at the beginning of the fiscal year. In addition, lease obligations of ¥892,472 million related to financeleases, previously included in interest-bearing debt, were reclassified as lease liabilities.
2. For details of third-party interests in SoftBank Vision Fund and Delta Fund, see “(2) Third-party interests in SoftBank Vision Fundand Delta Fund” under “3. SoftBank Vision Fund and Delta Fund business” in “(6) Notes to Condensed Interim Consolidated
Financial Statements” in “3. Condensed Interim Consolidated Financial Statements and Primary Notes.”

Reasons for changes in primary components
Components
Current Liabilities
A Derivative financial liabilities

Main reasons for changes from the previous fiscal year-end
Derivative financial liabilities relating to the embedded collar transaction in
the variable prepaid forward contract using Alibaba shares decreased¥749,846 million , due to settlement of the contract.

B Income taxes payables

Income tax of ¥321,290 million, which arose from a gain on the sale of SoftBank Corp. shares at SBGJ in the previous fiscal year, was paid.

C Other current liabilities

Withholding income tax of ¥422,648 million on dividends to SoftBank Group
Corp. by SBGJ in the previous fiscal year was paid.

22

SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2019

(Reference) Interest-bearing Debt and Lease Liabilities (Total of Current Liabilities and Non-current Liabilities)(Millions of yen)March 31, 2019

June 30, 2019

Change6,714,950

7,350,018

635,068

Borrowings

1,896,561

2,307,886

411,325

Corporate bonds

4,776,389

4,943,132

166,743

42,00099,00057,000

SoftBank Corp.

3,186,618

4,019,274

832,656

Borrowings

2,392,843

2,931,199

538,356

786,174-(786,174)-

1,082,886

1,082,886

7,601

5,189

(2,412)130,099

226,798

96,699-70,00070,000

Corporate bonds

130,000

130,000-

Lease obligations

99

-

(99)

Lease liabilities-

26,79826,7984,428,378

4,897,111

468,733

Borrowings

1,730,203

1,668,153(62,050)

Corporate bonds

2,674,649

2,410,659(263,990)

Lease obligations

14,991-(14,991)-

810,347

810,347

8,535

7,952

(583)

36,571

127,41090,83936,571

127,41090,8391,188,490

708,951(479,539)

by variable prepaid forward contract

730,601-(730,601)

Other interesting-bearing debt

457,889454,988(2,901)-

253,963

253,963

15,685,106

17,329,562

1,644,456

SoftBank Group Corp.2

OthersLease obligations
Lease liabilities
OthersYahoo Japan Corporation
Borrowings

SprintLease liabilities
OthersSoftBank Vision Fund
Borrowings
OthersFinancial liabilities relating to sale of shares

Lease liabilities
Total

23

SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2019

SoftBank Group Corp.2
・Short-term borrowings increased ¥425,816 million due to borrowings for payment of taxes and other one-time expenses.
・SoftBank Group Corp. issued domestic straight corporate bonds of ¥500 billion and redeemed corporate bonds of¥300 billion as part of refinancing corporate bonds maturing in June and September of 2019.

SoftBank Corp.
・Borrowings were made to acquire Yahoo Japan Corporation shares and to replenish the reduced working capital dueto this acquisition.
・Impacts of adopting IFRS 16 at the beginning of the fiscal year
- Lease liabilities of ¥384,103 million were newly recorded for operating leases that were previously accounted for
as leases.
- Finance leases of ¥786,174 million, previously included in interest-bearing debt, were reclassified as lease liabilities.
・Liabilities related to lease transactions of software for telecommunications equipment were previously classified aslease obligations. Since the Company does not adopt IFRS 16 on leases of intangible assets, those liabilities wererecorded as financial liabilities in borrowings based on IFRS 9, and retrospective adjustments have been made for thebalance of the previous fiscal year-end. Borrowings of ¥266,238 million related to those transactions (¥277,157 million for the previous fiscal year-end) were included for the first quarter-end.

Sprint・Bonds of $1.7 billion were redeemed at maturity, and borrowings through the securitization of receivables were repaid.
・Impacts of adopting IFRS 16 at the beginning of the fiscal year
- Lease liabilities of ¥868,200 million were newly recorded in relation to operating leases that were previously accounted for as leases.
- Finance leases of ¥14,991 million, previously included in interest-bearing debt, were reclassified as lease liabilities.

SoftBank Vision Fund and Delta Fund
Softbank Vision Fund made borrowings, mainly to increase the capital efficiency of its investments.

OthersFinancial liabilities relating to the sale of Alibaba shares by variable prepaid forward contract decreased due to its settlement.

24SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2019(c) Equity(Millions of yen)March 31, 2019

June 30, 2019

ChangeCommon stock

238,772

238,772-

Capital surplus

1,467,762

1,547,264

79,502496,876

496,876-

Retained earnings

5,571,285

6,127,093

555,808

B

Treasury stock(443,482)(95,796)347,686

C

Accumulated other comprehensive income

290,268(126,646)(416,914)

D

Total equity attributable to owners of the parent

7,621,481

8,187,563

566,082

Non-controlling interests

1,387,723

1,257,769(129,954)

Total equity

9,009,204

9,445,332

436,128

Other equity instruments

A

Reasons for changes in primary components
Components
A Capital surplus

Main reasons for changes from the previous fiscal year-end
Capital surplus increased as a result of a decrease in the Company’s economic
interests in Yahoo Japan Corporation.

B Retained earnings

Net income attributable to owners of the parent of ¥1,121,719 million was recorded. On the other hand, retained earnings decreased ¥558,136 million*1 withthe retirement of 55,753,200 shares of treasury stock in June 2019 (5.07% of thetotal number of issued shares before the retirement). In addition, the cumulative
impact of adopting IFRS 16 of ¥13,997 million was recorded as an increase inretained earnings on April 1, 2019.
· The Company repurchased its own shares for ¥384.1 billion (19.04 million
shares) in the previous fiscal year and for ¥215.9 billion (36.71 million shares)
during the fiscal year. This is in accordance with a resolution of the Board of
Directors on February 6, 2019 to repurchase the Company’s own shares, with amaximum total repurchase amount of ¥600 billion.
· The Company retired treasury stock in June 2019.

C Treasury stock

D Accumulated othercomprehensive income

Exchange differences on translating foreign operations, which arise from translating overseas subsidiaries and associates into yen, decreased ¥438,939 million
due to a stronger yen against the major currencies.

Note:
1. The number of shares retired is the same as the number of shares acquired from the share repurchase (the “Share Repurchase”) in
accordance with a resolution of the Board of Directors on February 6, 2019. However, since the retirement amount is calculated
based on the carrying amounts, including the treasury stock held by the Company prior to the Share Repurchase, the retirement
amount differs from the total repurchase amount of the Share Repurchase.

25SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2019(3) Overview of Cash Flows
1. Investing Activities of the SoftBank Vision Fund Inflows: contributions from third-party investors of ¥345.7 billion (cash flows from financing activities),
proceeds from borrowings of ¥224.4 billion (cash flows from financing activities).
 Outflows: payments for acquisition of investments of ¥681.6 billion (cash flows from investing activities),
repayment of borrowings of ¥130.6 billion and distribution/repayment to third-party investors of ¥68.4 billion(cash flows from financing activities).
2. Financing activities of SoftBank Group Corp.
 Corporate bonds of ¥500 billion were issued as part of refinancing domestic bonds maturing during the fiscal
year; ¥300 billion of outstanding bonds were redeemed at maturity.
 Short-term borrowings of ¥425.2 billion (net) were made to provide income tax payments and other one-time
expenses. Of this, ¥420 billion were repaid in July 2019 following a tax refund.
 Repurchase of own shares of ¥215.9 billion: a share repurchase program for a total amount of ¥600 billion wascompleted.
(Millions of yen)Three months ended June 30
2018
2019

ChangeCash flows from operating activities

274,419(547,191)(821,610)

Cash flows from investing activities(892,109)(1,367,991)(475,882)

Cash flows from financing activities(48,508)

1,026,301

1,074,809

Note: Since lease liabilities were newly recognized for operating leases from the fiscal year due to the adoption of IFRS 16, of theleasing amount (previously recorded as cash flows from operating activities), payment for interest expenses was recorded in“interest paid (cash flows from operating activities)” and payment related to repayment of principal of liabilities was recorded
in “repayment of lease liabilities (cash flows from financing activities).”(a) Cash Flows from Operating Activities
Income taxes paid increased ¥839,401 million year on year due to payments of income taxes during the first quarter.
These comprised income tax of ¥321,290 million at SBGJ on a gain on sale of SoftBank Corp. shares and withholding
income tax of ¥422,648 million arising from payment of dividends by SBGJ to SoftBank Group Corp. The withholding
tax was refunded in July 2019.
(b) Cash Flows from Investing Activities
Primary components
Components
Outlays for purchase of property, plant andequipment and intangible assets¥(319,247) million

Primary details
Sprint acquired leased devices and telecommunications equipment.
SoftBank Corp. acquired telecommunications equipment.

Payments for acquisition of investments¥(431,742) million

Wholly owned subsidiaries of the Company made investments in
WeWork and other companies.

Payments for acquisitions of investment by
SoftBank Vision Fund and Delta Fund¥(681,649) million

SoftBank Vision Fund made investments.

26

SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2019(c) Cash Flows from Financing Activities
Primary components
Component
Proceeds in short-term interest-bearing debt, net¥468,575 million

Primary details
SoftBank Corp. made borrowings of ¥280,000 million through the securitization of receivables related to telecommunications to replenish the reduced
working capital due to the acquisition of shares in Yahoo Japan Corporation.

Proceeds from interest-bearing debt
¥2,018,275 million
Proceeds from borrowings¥1,518,275 million*1· In preparation for payment of income tax and withholding income tax, SoftBank Group Corp. made short-term borrowings of ¥667,800 million. Of this,¥420,000 million was repaid in July 2019 following a refund of withholding
income tax.
· SoftBank Vision Fund borrowed ¥224,359 million, mainly to increase thecapital efficiency of its investments.
· SoftBank Corp. borrowed ¥150,500 million to finance the acquisition of Yahoo Japan Corporation shares. It also borrowed ¥206,977 million through thesecuritization of installment sales receivables and the sale and leaseback oftelecommunications equipment.
· Sprint made borrowings through the securitization of receivables and termloans.

Proceeds from issuance ofbonds¥500,000 million

SoftBank Group Corp. issued domestic straight corporate bonds for the purpose of refinancing.

Repayment of interest-bearing debt¥(1,206,144) million
Repayment of borrowings¥(712,884) million*1· SoftBank Group Corp. repaid short-term borrowings of ¥242,650 million.
· SoftBank Vision Fund repaid ¥130,582 million of its borrowings mademainly to increase the capital efficiency of its investments.
· SoftBank Corp. and Sprint repaid borrowings.

Redemption of corporatebonds¥(490,235) million· SoftBank Group Corp. redeemed domestic straight corporate bonds of ¥300
billion at maturity.
· Sprint redeemed corporate bonds of $1.7 billion at maturity.

Repayment of lease liabilities¥(195,149) million

SoftBank Corp. and Sprint repaid lease liabilities related to telecommunications equipment.

Contribution to SoftBank Vision
Fund and Delta Fund from thirdparty investors¥345,672 million

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

Distribution/repayment from SoftBank Vision Fund and Delta Fundto third-party investors¥(68,409) million

SoftBank Vision Fund made a fixed distribution based on the principal of investments.

Purchase of treasury stock¥(215,935) million

SoftBank Group Corp. repurchased its own shares.

Note:
1. Proceeds from borrowings and repayment of borrowings include proceeds of ¥1,131,148 million and outlays of ¥(386,734) million,
respectively, related to borrowings with a contracted term of one year or less.

27

SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2019

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

Notes for “1. Results of Operations”
1 The names of the investments of SoftBank Vision Fund are presented in the order of the size of the investments’ impact on the Com-pany’s financial results, unless otherwise stated.
2 The presentation of the interest-bearing debt and finance cost of SoftBank Group Corp. includes borrowings made by Skywalk Finance

GK, a wholly owned subsidiary of the Company, using Alibaba shares. The borrowings are not guaranteed by SoftBank Group Corp.,
hence non-recourse to the company.
3 The acquisition costs and fair values of the investments at SoftBank Vision Fund include the investments made by subsidiaries of theCompany through investment holding entities that are subsidiaries of SoftBank Vision Fund.
4 Contributions from limited partners of SoftBank Vision Fund excludes the amount that was repaid to limited partners due to investment
plan changes and other reasons after the contribution had been made.
5
The Company’s obligation to Delta Fund is offset against the cost of the investment securities in DiDi acquired by the Company andthen transferred to Delta Fund.
6 Non-recallable contribution of SoftBank Vision Fund represents the applicable principal for the investment in Flipkart Private Limited,which was returned to limited partners after the sale of its shares.
7 When an investment is made from the remaining committed capital of the third-party investor at Delta Fund, the same amount isdeducted from that investor’s remaining committed capital at SoftBank Vision Fund.
8 This analysis is based on the actual shipments of royalty units (chips incorporating Arm technology) by Arm licensees for the threemonth period ended March 31, 2019, as reported by licensees in royalty reports. Arm’s licensees report their actual shipments ofroyalty units one quarter in arrears, and therefore, the current quarter’s royalty unit analysis is based on chips shipped in the priorquarter. In contrast, royalty revenues are accrued in the same quarter the chips are shipped, based on estimates.

28

SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2019

2. Notes to Summary Information(1) Changes in Accounting Policies(Changes in accounting policies required by IFRSs)
IFRS 16 “Leases” has been adopted during the three-month period ended June 30, 2019.
The details are described in “Note 1. Significant accounting policies” in “(6) Notes to Condensed Interim
Consolidated Financial Statements” under “3. Condensed Interim Consolidated Financial Statements and Primary
Notes.”(2) Changes in Accounting Estimates
Sprint entered into a sale and leaseback contract for their corporate headquarters (buildings, land, and other) and therelated assets were reclassified to “Assets classified as held for sale” for the three-month period ended June 30, 2019. In
addition, the assets were measured at fair value after deducting the sale cost and were less than their carrying amounts.
As a result, an impairment loss was recorded. The details are described in “Note 4. Assets classified as held for sale”
and “Note 12. Other operating loss” in “(6) Notes to Condensed Interim Consolidated Financial Statements” under “3.
Condensed Interim Consolidated Financial Statements and Primary Notes.”

29

SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2019

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

Definition

SoftBank Group Corp.

SoftBank Group Corp. (stand-alone basis)

The Company

SoftBank Group Corp. and its subsidiaries*Each of the following abbreviations indicates the respective company, and its subsidiaries, if any.
SoftBank Vision Fund

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

Delta FundSB Delta Fund (Jersey) L.P.

SBIA

SB Investment Advisers (UK) Limited

SprintSprint Corporation

Arm

Arm Limited

Brightstar

Brightstar Global Group Inc.

Fortress

Fortress Investment Group LLC

Alibaba

Alibaba Group Holding Limited30

SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2019(1) Condensed Interim Consolidated Statement of Financial Position(Millions of yen)

As ofMarch 31, 2019
AssetsCurrent assets
Cash and cash equivalents
Trade and other receivables
Other financial assets
Inventories
Other current assets
Subtotal
Assets classified as held for sale
Total current assets
Non-current assets
Property, plant and equipment
Right-of-use assets
Goodwill
Intangible assets
Costs to obtain contracts
Investments accounted for using the equity method
Investments from SoftBank Vision Fund and Delta Fund
accounted for using FVTPL
Investment securities
Other financial assets
Deferred tax assets
Other non-current assets
Total non-current assets
Total assets

31

As of
June 30, 2019

3,858,518
2,339,977
203,476
365,260
766,556
7,533,787
224,201
7,757,988

2,932,541
2,284,861
191,921318,328
872,762
6,600,413
25,0406,625,453

4,070,704
4,321,467
6,892,195
384,076
2,641,045

2,873,267
2,353,750
4,152,753
6,661,372
385,7942,504,162

7,115,629

8,081,137

924,614
1,185,856
586,943
215,959
28,338,488
36,096,476

1,214,948
1,326,238
193,336
214,751
29,961,508
36,586,961

SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2019

(Millions of yen)

As ofMarch 31, 2019
Liabilities and equity
Current liabilities
Interest-bearing debt
Lease liabilities
Deposits for banking business
Third-party interests in SoftBank Vision Fundand Delta Fund
Trade and other payables
Derivative financial liabilities
Other financial liabilities
Income taxes payables
Provisions
Other current liabilities
Total current liabilities
Non-current liabilities
Interest-bearing debt
Lease liabilities
Third-party interests in SoftBank Vision Fundand Delta Fund
Derivative financial liabilities
Other financial liabilities
Defined benefit liabilities
Provisions
Deferred tax liabilities
Other non-current liabilities
Total non-current liabilities
Total liabilities
EquityEquity attributable to owners of the parent
Common stock
Capital surplus
Other equity instruments
Retained earnings
Treasury stock
Accumulated other comprehensive income
Total equity attributable to owners of the parent
Non-controlling interests
Total equity
Total liabilities and equity

32

As of
June 30, 2019

3,480,960
745,943

3,277,849
621,022774,891

29,677

147,625

1,909,608
767,714
10,849534,906
43,685
1,158,355
8,681,697

1,752,907
27,612
11,376
77,07535,674
689,885
7,415,916

12,204,146-

11,877,719
1,552,972

4,107,288

4,322,539

130,545
57,11599,351
157,478
1,391,072
258,580
18,405,575
27,087,272

136,144
65,474
95,840155,126
1,364,942
154,957
19,725,713
27,141,629

238,772
1,467,762
496,876
5,571,285(443,482)
290,268
7,621,481
1,387,723
9,009,204
36,096,476

238,772
1,547,264
496,876
6,127,093(95,796)(126,646)
8,187,563
1,257,769
9,445,332
36,586,961

SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2019(2) Condensed Interim Consolidated Statement of Income and Condensed Interim Consolidated Statement ofComprehensive Income
Condensed Interim Consolidated Statement of Income(Millions of yen)Three-month period ended Three-month period ended
June 30, 2018
June 30, 2019
Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Gain relating to loss of control over subsidiaries
Other operating loss
Operating income (excluding income from SoftBank
Vision Fund and Delta Fund)
Operating income from SoftBank Vision Fundand Delta Fund
Operating income
Finance cost
Income on equity method investments
Foreign exchange gain (loss)
Derivative loss
Gain relating to settlement of variable prepaid forward
contract using Alibaba shares
Gain from financial instruments at FVTPL
Change in third-party interests in SoftBank Vision Fundand Delta Fund
Other non-operating income (loss)
Income before income tax
Income taxes
Net income
Net income attributable to
Owners of the parent
Non-controlling interests

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

2,272,783(1,316,660)
956,123

2,336,397(1,335,855)
1,000,542(627,985)(663,114)

161,347(14,436)(46,242)475,049

291,186

239,944397,630

714,993(148,467)
37,705
12,925(54,080)

688,816(153,846)
90,115(6,506)(7,672)-

1,218,527

94,542

27,496(72,889)(184,488)(12,425)572,304(244,184)
328,120

9,902
1,682,344(504,865)
1,177,479

313,687
14,433
328,120

1,121,719
55,7601,177,479

140.77140.07534.89532.09Note:
The Company conducted a share split at a ratio of two-for-one effective June 28, 2019. “Basic earnings per share” and “Diluted
earnings per share” are calculated assuming that the share split was conducted at the beginning of the fiscal year ended March 31,
2019.

33

SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2019

Condensed Interim Consolidated Statement of Comprehensive Income(Millions of yen)Three-month period ended
June 30, 2018

Three-month period ended
June 30, 2019

328,120

1,177,479

748

(10)

748

(10)

35
(20,600)

566
22,981

17,021(445,524)(13,796)(8,320)(17,340)(430,297)(16,592)
311,528(430,307)
747,172

279,616
31,912
311,528

706,799
40,373
747,172

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

34

SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2019(3) Condensed Interim Consolidated Statement of Changes in Equity
For the three-month period ended June 30, 2018
(Millions of yen)

Equity attributable to owners of the parent

As of April 1, 2018
Effect of retrospective
adjustments due to adoption of
new standards*
As of April 1, 2018
(after adjustments)
Comprehensive income
Net income
Other comprehensive
incomeTotal comprehensive income
Transactions with owners andother transactions
Cash dividends
Transfer of accumulated othercomprehensive income toretained earnings
Purchase and disposal of treasury
stock
Changes in interestsin subsidiaries
Changes in associates’interests in theirsubsidiaries
Changes in interests in associates’
capital surplus
Share-based payment transactions
Other
Total transactions with owners
and other transactions
As of June 30, 2018

Commonstock
238,772

Capitalsurplus256,768

Other equity
instruments

496,876

Retainedearnings
3,940,259

Treasurystock(66,458)---

300,615

238,772

256,768

496,876

Accumulated
othercomprehensive
income317,959

Total
5,184,176-(57,828)

242,787

4,240,874(66,458)

260,1315,426,963---

313,687--

313,687

-

-

-

-

-

(34,071)(34,071)---

313,687-(34,071)

279,616---(23,969)--(23,969)

-

-

-

387

-

(387)

-

-

-

-

-

(4)

-

(4)

-

197

-

-

-

-

197

-

4,541

-

-

-

-

4,541

-

(250)

-

-

-

-

(250)

-

2,004
684

-

-

-

-

2,004
684

-

7,176

-

(23,582)

(4)

(387)

(16,797)

238,772

263,944496,876

4,530,979(66,462)

225,673

5,689,782

35

SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2019

(Millions of yen)

As of April 1, 2018
Effect of retrospective
adjustments due to adoption of
new standards*
As of April 1, 2018
(after adjustments)
Comprehensive income
Net income
Other comprehensive
incomeTotal comprehensive income
Transactions with owners andother transactions
Cash dividends
Transfer of accumulated othercomprehensive income toretained earnings
Purchase and disposal of treasury
stock
Changes in interestsin subsidiaries
Changes in associates’interests in theirsubsidiaries
Changes in interests in associates’
capital surplus
Share-based payment transactions
Other
Total transactions with owners
and other transactions
As of June 30, 2018

Noncontrollinginterests
1,088,846

Total equity
6,273,022

21,300264,087

1,110,146

6,537,109

14,433

328,120

17,479(16,592)

31,912

311,528(29,483)(53,452)

-

-

-

(4)

18,195

18,392

-

4,541

-

(250)

1,170
(548)

3,174
136

(10,666)(27,463)

1,131,392

6,821,174

Note:* As a result of the adoption of IFRS 9 “Financial Instruments” and IFRS 15 “Revenue from Contracts with Customers,” cumulative
effects of retrospective adjustments are recognized as adjustments to the opening balance of retained earnings and accumulated
other comprehensive income.

36SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2019

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

Equity attributable to owners of the parent

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

Commonstock
238,772

Capitalsurplus1,467,762

Other equity
instruments

496,876

Retainedearnings
5,571,285

Treasurystock(443,482)---

13,997

238,772

1,467,762

496,876---

Accumulated
othercomprehensive
income290,268

Total
7,621,481--

13,997

5,585,282(443,482)

290,268

7,635,478-

1,121,719--

1,121,719

-

-

-

-

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

1,121,719-(414,920)

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

-

-

-

1,994

-

(1,994)

-

-

(739)

-

(582)

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

558,136---

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

-

-

-

-

(1,003)

-

1,259

-

-

-

-

1,259

-

1,578
-

-

-

-

-

1,578
-

-

79,502-(579,908)

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

238,772

1,547,264

496,876

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

8,187,563

37

SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2019

(Millions of yen)

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

Noncontrollinginterests
1,387,723

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

12,6401,386,366

9,021,844

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

40,373

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

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

1,257,769

9,445,332

Note:* As a result of the adoption of IFRS 16 “Leases,” cumulative effects of retrospective adjustments are recognized as adjustments tothe opening balance of retained earnings. The details are described in “(3) Effect of adopting new standards and interpretations” in“Note 1. Significant accounting policies” under “(6) Notes to Condensed Interim Consolidated Financial Statements.”

38

SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2019(4) Condensed Interim Consolidated Statement of Cash Flows(Millions of yen)Three-month period ended
June 30, 2018

Three-month period ended
June 30, 2019

328,120

1,177,479

Depreciation and amortization

405,153

497,198

Gain relating to loss of control over subsidiaries
Gain on investments at SoftBank Vision Fundand Delta Fund
Finance cost(161,347)-(247,211)(414,419)

148,467

153,846

Income on equity method investments(37,705)(90,115)

Derivative loss
Gain relating to settlement of variable prepaid forward
contract using Alibaba shares

54,0807,672-(1,218,527)

Gain from financial instruments at FVTPL(94,542)(27,496)

72,889184,488

Cash flows from operating activities
Net income

Change in third-party interests in SoftBank Vision Fundand Delta Fund
Foreign exchange (gain) loss and other non-operating
loss (income)
Income taxes(500)(3,396)244,184

504,865

Decrease in trade and other receivables
Increase in inventories
Decrease in trade and other payables
Other

63,741(78,014)(98,806)(24,059)

26,429(51,832)(113,646)(72,742)

Subtotal

574,450

559,804

Interest and dividends received
Interest paid
Income taxes paid
Income taxes refunded
Net cash provided by (used in) operating activities

10,314(160,620)(150,141)416
274,419

15,479(135,298)(989,542)
2,366(547,191)(333,374)(319,247)(267,903)(431,742)

Cash flows from investing activities
Purchase of property, plant and equipment, and intangible
assetsPayments for acquisition of investments
Proceeds from sales/redemption of investments
Payments for acquisition of investments by SoftBank
Vision Fund and Delta Fund
Proceeds from acquisition of control over subsidiaries

78,70360,564(176,963)(681,649)

56,826-

Payments for loan receivables(17,792)(80,277)

Collection of loan receivables
Payments for acquisition of marketable securities for
short-term trading
Proceeds from sales/redemption of marketable securities
for short-term trading
Payments into time deposits

20,38242,472(140,640)(14,789)

37,09325,337(244,107)(5,758)Proceeds from withdrawal of time deposits

199,305

310

Other

(103,639)

36,788(892,109)(1,367,991)

Net cash used in investing activities

39SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2019

(Millions of yen)

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

Three-month period ended
June 30, 2018

Three-month period ended
June 30, 2019

612

468,575

1,436,683(1,388,998)

2,018,275(1,206,144)-(195,149)

Repayment of lease liabilities
Contributions into SoftBank Vision Fundand Delta Fund from third-party investors
Distribution/repayment from SoftBank Vision Fundand Delta Fund to third-party investors
Purchase of shares of subsidiaries from non-controllinginterests
Purchase of treasury stock

180,212345,672(161,259)(68,409)(4,560)(14,221)(4)(215,935)

Cash dividends paid

(23,365)(22,684)

Cash dividends paid to non-controlling interests(29,348)(79,801)

Other(58,481)(3,878)(48,508)

1,026,301

59,827(37,096)

Decrease in cash and cash equivalents(606,371)(925,977)

Cash and cash equivalents at the beginning of the period

3,334,650

3,858,518

Cash and cash equivalents at the end of the period

2,728,279

2,932,541

Net cash (used in) provided by financing activities
Effect of exchange rate changes on cash and cash equivalents

40SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2019(5) Significant Doubt about Going Concern Assumption
There are no applicable items.
(6) Notes to Condensed Interim Consolidated Financial Statements
1. Significant accounting policies
Significant accounting policies applied to the condensed interim consolidated financial statements are the same as theaccounting policies applied to the consolidated financial statements for the fiscal year ended March 31, 2019, except
as described herein. In addition, income taxes for the three-month period ended June 30, 2019 are calculated based on
the estimated effective tax rate and certain defined benefit liabilities for the three-month period ended June 30, 2019are calculated by predictive computation based on a reasonable estimation in accordance with the results of an
actuarial calculation as of March 31, 2019.
(1) Adoption of new standards and interpretations
The Company has adopted the following standards during the three-month period ended June 30, 2019.
Standard/interpretation

IFRS 16

LeasesOutline of the new/revised standards
IFRS 16 replaces the previous IAS 17 and IFRIC 4. Mainrevisions are:・to apply a control model for the identification of leases,
distinguishing between leases and service contracts; and・to eliminate the finance and operating lease classification
for a lessee and require the recognition of the right-of-use
asset and the lease liability for lease transactions.

There is no significant impact to the condensed interim consolidated financial statements due to the adoption of theother new accounting standards or interpretations.
In accordance with the transitional provisions of IFRS 16 “Leases,” the Company retrospectively recognized thecumulative effect arising from initial adoption of this standard by adjusting the balance of retained earnings as ofApril 1, 2019. Accordingly, comparative information for the fiscal year ended March 31, 2019 is not restated,
except for lease transactions of intangible assets disclosed below.
The Company does not apply IFRS 16 to leases of intangible assets and, therefore, restated comparative informationon leases of intangible assets for the fiscal year ended March 31, 2019 in accordance with IAS 8 “Accounting
Policies, Changes in Accounting Estimates and Errors.”
In accordance with the transitional provision, the Company adopted a practical expedient that does not require theCompany to reassess whether a contract is, or contains, a lease when applying IFRS 16. Accordingly, except for the
aforementioned leases of intangible assets, the Company applies IFRS 16 to contracts that were previously
identified as a lease under IAS 17 and IFRIC 4 and does not apply IFRS 16 to contracts that were not previously
identified as a lease under such standards, at the date of initial adoption.
In addition to the above, the Company applies the following practical expedients in accordance with the transitional
provisions.
・A practical expedient that allows a lessee to rely on its assessment of whether lease contracts are onerous applying
IAS 37 “Provisions, Contingent Liabilities and Contingent Assets” on a lease-by-lease basis as an alternative toperforming an impairment review.
・A practical expedient that allows a lessee to exclude initial direct costs from the measurement of the right-of-use
asset on a lease-by-lease basis at the date of initial adoption.
・A practical expedient that allows a lessee to use hindsight on a lease-by-lease basis, such as in determining thelease term if the contract contains options to extend or terminate the lease.

41

SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2019

・A practical expedient that allows, on a lease-by-lease basis, measurement of a right-of-use asset at the date ofinitial adoption for leases previously classified as an operating lease applying IAS 17 at an amount equal to thelease liability.
(2) Significant accounting policies changed due to the adoption of new standards and interpretations
Lease
a. Overall(a) Identifying a lease
At inception of a contract, the Company assesses whether the contract is, or contains, a lease. The Company
deems a contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset
for a period of time in exchange for consideration. If the following conditions are met, the Company deems thatthe contract conveys the right to control the use of an identified asset.
i. The use of the identified asset is specified in a contract and the lessor does not have the right to substitute theasset.
ii. Throughout the period of use, the lessee has the right to obtain substantially all of the economic benefits fromuse of the identified asset.
iii. The lessee has the right to direct the use of the identified asset. Where the relevant decisions about how and forwhat purpose the asset is used are predetermined, the lessee is deemed to have the right to direct the use of theidentified asset if:
・the lessee has the right to operate the asset; or・the lessee designed the asset in a way that predetermines how and for what purpose the asset will be used.
(b) Lease term
The lease term is determined as the non-cancellable period of a lease, together with both:・periods covered by an option to extend the lease if the lessee is reasonably certain to exercise that option; and・periods covered by an option to terminate the lease if the lessee is reasonably certain not to exercise that option.
b. Lessee(a) Separating components of a contract
For a contract that is, or contains, a lease, the Company accounts for each lease component within the contract asa lease separately from non-lease components of the contract by allocating the consideration in the contract toeach lease component on the basis of the relative stand-alone price of the lease component and the aggregate
stand-alone price of the non-lease components.
(b) Recognition exemptions
The Company does not apply the exemptions from IFRS 16 requirements to short-term leases and leases forwhich the underlying asset is of low value.
(c) Lease transactions of intangible assets
The Company does not apply IFRS 16 to leases of intangible assets.
(d) Right-of-use asset
At the commencement date, the Company recognizes a right-of-use asset and a lease liability. The right-of-use
asset is initially measured at cost. The cost of the right-of-use asset comprises: the amount of the initial
measurement of the lease liability; any lease payments made at or before the commencement date; any initial
direct costs; and an estimate of costs to be incurred in dismantling and removing the underlying asset, restoring
the site on which it is located or restoring the underlying asset; less any lease incentives received.
After the initial measurement, the right-of-use asset is depreciated on a straight-line basis: (a) over the estimateduseful life if the transfer of ownership of the underlying asset is certain; or (b) over the shorter of the lease term or
the estimated useful life of the leased asset if the transfer of ownership is not certain. The estimated useful life of
the right-of-use asset is determined by the same method applied to property, plant and equipment. As a result of
the adoption of IFRS 16, favorable lease contracts that were previously recognized as intangible assets, except for
those related to FCC licenses, have been reclassified to the right-of-use assets, and related items in othernon-current liabilities as well as onerous lease contracts that were previously recognized as other current
liabilities are deducted from the right-of-use assets. Further, if the right-of-use asset is impaired, an impairment
loss is deducted from the carrying amount of the right-of-use asset.

42

SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2019(e) Lease liability
At the commencement date, the Company measures the lease liability at the present value of the lease paymentsthat will be paid over the lease term after that date. In calculating the present value, the interest rate implicit in thelease is used as a discount rate if that rate can be readily determined. If that rate cannot be readily determined, theCompany’s incremental borrowing rate is used.
The lease payments included in the measurement of the lease liability mainly comprise: fixed payments; lease
payments to be made during extension periods, if the lease term reflects the exercise of an option to extend thelease; and payments of penalties for terminating the lease, if the lease term reflects the exercise of an option toterminate the lease.
After the initial measurement, the lease liability is measured at amortized cost using an effective interest method.
The lease liability is remeasured if there is a change in future lease payments resulting from a change in an index
or a rate, if there is a change in the amounts expected to be payable under a residual value guarantee, or if there isa change in the assessment of the possibility of an option to extend or terminate the lease being exercised.
If the lease liability is remeasured, the carrying amount of the right-of-use asset is also adjusted by the amount of
the remeasurement of the lease liability. However, if the amount of liability reduced by the remeasurement of thelease liability exceeds the carrying amount of the right-of-use asset, any remaining amount of the remeasurement
after reducing the right-of-use asset to zero is recognized in profit or loss.
c. Lessor(a) Separating components of a contract
For a contract that is, or contains, a lease, the Company allocates the consideration in the contract applying IFRS
15 to lease components and non-lease components of the contract.
(b) Classification of leases
At the commencement of a lease contract, the Company classifies whether the contract is a finance lease or an
operating lease. A lease is classified as a finance lease if it transfers substantially all the risks and rewards
incidental to ownership of an underlying asset. Otherwise, a lease is classified as an operating lease. The
Company assesses that substantially all the risks and rewards incidental to ownership of an underlying asset aretransferred in cases where, the lease term is for the major part of the economic life of the underlying asset, or the
total amount of present value of the minimum lease payment is substantially all the amount of fair value of theasset.
(c) Sublease classification
If the Company is a party to a sublease contract, the Company accounts for the head lease (lessee) and thesublease (lessor) separately. When classifying the sublease as a finance lease or an operating lease, the Company
considers the risks and rewards incidental to, and the useful life of, the right-of-use asset that is recognized by
the Company in the head lease, instead of that of the leased asset.
(d) Recognition and measurement
Total lease payments received from operating leases received during the lease term are recognized as income ona straight-line basis over the lease term.
(3) Effect of adopting new standards and interpretations
At the initial adoption of IFRS 16, the Company recognized lease liabilities for those lease transactions that werepreviously classified as an operating lease under IAS 17. These lease liabilities are measured at the present value ofthe lease payments that have not yet been paid at the date of initial adoption of IFRS 16, discounted using theCompany’s incremental borrowing rate at that date. The weighted average incremental borrowing rate applied to leaseliabilities at the initial adoption is 3.15%.
The Company does not apply IFRS 16 to leases of intangible assets and, therefore, restated comparative informationon leases of intangible assets for the fiscal year ended March 31, 2019 in accordance with IAS 8 “Accounting Policies,
Changes in Accounting Estimates and Errors.” As a result, the presentation of the Company’s borrowings for certain
software development has been changed. The details are described in “(1) Components of interest-bearing debt” under“8. Interest-bearing debt.”
Further, before applying IFRS 16, commitments under Sprint’s lease agreements for spectrum licenses held by third
parties were included in the notes for the future minimum lease payments payable under operating leases as they were43

SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2019

deemed to be equivalent to operating leases. These commitments, however, are not included in “Undiscounted future
minimum lease payments payable under operating leases as of March 31, 2019” in the table below because they are
not leases within the scope of IFRS 16. The amount excluded is ¥746,787 million.
The difference between the future minimum lease payments payable under operating leases as of March 31, 2019
excluding the commitments described above and lease liabilities recognized as of April 1, 2019 is as follows:(Millions of yen)

Undiscounted future minimum lease payments payable underoperating leases as of March 31, 2019
Adjustments by discounting the future minimum lease
payments payable under operating leases above
Discounted future minimum lease payments payable underoperating leases as of April 1, 2019
Lease obligations relating to leases that were classified as afinance lease
Adjustments attributable to revision of the lease term
Effect from the classification of non-lease component
Adjustments attributable to other factors
Lease liabilities as of April 1, 2019

1,917,239(206,046)
1,711,193
879,723(124,242)(121,406)(3,470)2,341,798

As a result of the adoption of IFRS 16, the assets recognized under finance leases as a lessee that were previously
included in property, plant and equipment, are reclassified to right-of-use assets. Lease transactions, which werepreviously classified and accounted for as operating leases, are also recorded as right-of-use assets. As a result, on
April 1, 2019, property, plant and equipment decreased by ¥1,157,008 million and right-of-use assets increased by¥2,525,152 million.
(4) Significant accounting policies for SoftBank Vision Fund and Delta Fund segment
For SoftBank Vision Fund and Delta Fund, the Company applies the following accounting policies.
a. Consolidation of the SoftBank Vision Fund and Delta Fund segment by the Company
SoftBank Vision Fund and Delta Fund are limited Partnerships established by their respective General Partners which
are wholly-owned subsidiaries of the Company, and by their form of organization, qualify as structured entities.
SoftBank Vision Fund and Delta Fund are consolidated by the Company for the following reasons.
The various entities comprising SoftBank Vision Fund and Delta Fund make investment decisions through theirrespective Investment Committee, which were established as committees of SBIA. SBIA is an advisory company andis a wholly-owned subsidiary of the Company. As such, the Company has power as defined under IFRS 10“Consolidated Financial Statements” over SoftBank Vision Fund and Delta Fund. Furthermore, SBIA receives
performance fees and the Company receives distributions attributable to limited Partners based on the investment
performance as returns from the Funds. The Company has the ability to affect those returns through its power over theFunds, and therefore, the Company is deemed to have control as stipulated in IFRS 10 over each Fund.
Inter-company transactions such as management fees and performance fees to SBIA paid or to be paid from SoftBank
Vision Fund and Delta Fund are eliminated in consolidation.
b. Portfolio company investments made by SoftBank Vision Fund and Delta Fund(a) Investments in subsidiaries
Of the portfolio company investments made by SoftBank Vision Fund, the portfolio companies that the Company isdeemed to control under IFRS 10 are 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 the SoftBank Vision Fundare eliminated in consolidation.

44

SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2019(b) Investments in associates and joint ventures
Of the portfolio company investments made by SoftBank Vision Fund, the portfolio companies over which theCompany has significant influence under IAS 28 “Investments in Associates and Joint Ventures” are associates of
the Company, and the portfolio companies that are joint ventures of the SoftBank Vision Fund when, as defined
under IFRS 11 “Joint Arrangements,” the SoftBank Vision Fund has joint control with other investors undercontractual arrangements and the investors have rights to the net assets of the arrangement.
The investments in associates and joint ventures of the Company made by SoftBank Vision Fund are accounted for
as financial assets at FVTPL in accordance with paragraph 18 of IAS 28, and presented as “Investments from
SoftBank Vision Fund and Delta Fund accounted for using FVTPL” in the condensed interim consolidated statementof financial position. The payments for these investments are presented as “Payments for acquisition of investments
by SoftBank Vision Fund and Delta Fund” under cash flows from investing activities in the condensed interim
consolidated statement of cash flows.
(c) Other investments
Investments other than those in associates or joint ventures of the Company made by the SoftBank Vision Fund andDelta Fund are accounted for as financial assets at FVTPL. The presentation of these investments in the condensed
interim consolidated statement of financial position and the condensed interim consolidated statement of cash flows
are the same as the above “(b) Investments in associates and joint ventures.”c. Presentation of the results from the SoftBank Vision Fund and Delta Fund business
Income and loss arising from the SoftBank Vision Fund and Delta Fund business are separated from operating income
and loss arising from other businesses, recognized as a component of operating income, and presented as “Operating
income from SoftBank Vision Fund and Delta Fund” in the condensed interim consolidated statement of income. Gain
and loss arising from “b. Portfolio company investments made by SoftBank Vision Fund and Delta Fund” (realized
gain and loss on sales of investments, unrealized gain and loss on valuation of investments, interest and dividend
income from investments, except for gain and loss on investments in subsidiaries) and operating expenses such asincorporation expenses of entities that comprise SoftBank Vision Fund and Delta Fund, investment research expenses
arising from SBIA, and administrative expenses arising from each entity, are included in “Operating income from
SoftBank Vision Fund and Delta Fund.”d. Bridge Investments
Investments acquired by SoftBank Group Corp. or its subsidiaries with the premise of offering such investments to
SoftBank Vision Fund and Delta Fund and were made in accordance with the investment eligibility criteria of
SoftBank Vision Fund at the time of acquisition (“Bridge Investments”) are accounted for as financial assets at
FVTPL. The Company recognizes the decision to transfer such investments after the Company obtains consent fromthe investment committee and other bodies (and certain limited partners, if applicable) at SoftBank Vision Fund andapprovals from relevant regulatory authorities. The Company changes the presentation of Bridge Investments in its
condensed interim consolidated financial statements in the annual period in which the Company made the decision totransfer such investments.
If the transfer was agreed from the beginning of the fiscal year to the end of the quarter, the Company presents items
relevant to those investments as if SoftBank Vision Fund and Delta Fund had made those investments from the
beginning of the fiscal year. Those items would be presented as “Investments from SoftBank Vision Fund and Delta
Fund accounted for using FVTPL” in the condensed interim consolidated statement of financial position, “Operating
income from SoftBank Vision Fund and Delta Fund” in the condensed interim consolidated statement of income, and“Payments for acquisition of investments by SoftBank Vision Fund and Delta Fund” under cash flows from investing
activities in the condensed interim consolidated statement of cash flows.
On the other hand, if the investments have not yet been agreed to be transferred at the end of the quarter, the Company
presents items relevant to those investments as “Investment securities” in the condensed interim consolidated
statement of financial position, “Gain from financial instruments at FVTPL” in the condensed interim consolidated
statement of income, and “Payments for acquisition of investments” under cash flows from investing activities in thecondensed interim consolidated statement of cash flows.
e. Investments that are not Bridge Investments and for which the transfer is agreed
For investments that are not Bridge Investments, if the transfer was agreed from the beginning of the fiscal year to theend of the quarter, the Company continues to apply the same accounting treatment followed in the periods prior to theagreement. They are accounted for as financial assets at FVTPL.

45

SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2019

If the transfer was agreed from the beginning of the fiscal year to the end of the quarter, the Company presents the
carrying amounts of those investments at the end of the quarter as if the investments had been made by SoftBank
Vision Fund on the date the transfer was agreed. Those investments would be presented as “Investments from
SoftBank Vision Fund and Delta Fund accounted for using FVTPL” in the condensed interim consolidated statementof financial position at the end of the quarter, the difference between the carrying amount at the beginning of the fiscal
year and the transferred amount and the respective gain and loss on those investments arising from the difference
between the transferred amount and fair value at the end of the quarter as “Gain and loss from financial instruments at
FVTPL” and “Operating income from SoftBank Vision Fund and Delta Fund” in the condensed interim consolidated
statement of income, respectively, and payments for acquisition of such investments as “Payments for acquisition of
investments” under cash flows from investing activities in the condensed interim consolidated statement of cash
flows.
f. Contribution from limited Partners to SoftBank Vision Fund and Delta Fund
SoftBank Vision Fund and Delta Fund issue capital calls from their respective limited partners (“Capital Call”).
(a) Contribution from Limited Partners other than the Company
The interests attributable to limited partners of SoftBank Vision Fund and Delta Fund other than the Company(“Third-Party Investors”) are classified as financial liabilities, “Third-party interests in SoftBank Vision Fund andDelta Fund” in the condensed interim consolidated statement of financial position, due to the predetermined finite
life (in principle, until November 20, 2029 for SoftBank Vision Fund and until September 27, 2029 for Delta Fund)and contractual payment provision to each of the limited partners at the end of the finite life within SoftBank Vision
Fund and Delta Fund’s limited partnership agreements. The liabilities are classified as “financial liabilities measured
at amortized cost” upon initial recognition. The carrying amounts attributable to Third-Party Investors represent theamounts that would be distributed in accordance with the limited partnership agreement in a theoretical liquidation
scenario at the end of each quarter.
“Third-party interests in SoftBank Vision Fund and Delta Fund” fluctuate due to the results of SoftBank Vision Fundand Delta Fund in addition to contributions from Third-Party Investors in satisfaction of Capital Calls, anddistributions and repayments of investments to Third-Party Investors. The fluctuations due to the results of SoftBank
Vision Fund and Delta Fund are presented as “Change in third-party interests in SoftBank Vision Fund and Delta
Fund” in the condensed interim consolidated statement of income.
Contributions from Third-Party Investors to SoftBank Vision Fund and Delta Fund are included in “Contributions
into SoftBank Vision Fund and Delta Fund from third-party investors” under cash flows from financing activities in
the condensed interim consolidated statement of cash flows. The distributions and repayments of investments toThird-Party Investors are included in “Distribution/repayment from SoftBank Vision Fund and Delta Fund to
third-party investors” under cash flows from financing activities in the condensed interim consolidated statement ofcash flows.
Uncalled committed capital from Third-Party Investors is not subject to IFRS 9, “Financial Instruments,” and,
therefore, such amount is not recorded in the condensed interim consolidated statement of financial position.
(b) Contribution from the Company
Contribution from the Company to SoftBank Vision Fund and Delta Fund as a limited partner is eliminated inconsolidation.

46

SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2019

2. Segment information(1) Description of reportable segments
The Company’s reportable segments are components of business activities for which discrete financial
information is available, and such information is regularly reviewed by the Company’s Board of Directors inorder to make decisions about the allocation of resources and assess its performance.
For the fiscal year ended March 31, 2019, the Company had six reportable segments, the SoftBank segment, theSprint segment, the Yahoo Japan segment, the Arm segment, the SoftBank Vision Fund and Delta Fund segment,
and the Brightstar segment. However, from the three-month period ended June 30, 2019, in accordance with theconsolidation of Yahoo Japan Corporation by SoftBank Corp., business segments which are regularly reviewed
by the Company’s Board of Directors have been changed. Accordingly, the Company has revised its segmentclassifications to the following five reportable segments: the SoftBank Vision Fund and Delta Fund segment, theSoftBank segment, the Sprint segment, the Arm segment, and the Brightstar segment.
The SoftBank Vision Fund and Delta Fund segment conducts investment activities in a wide range of technology
sectors. The segment income of the SoftBank Vision Fund and Delta Fund segment consists of gain and loss
arising from investments, including subsidiaries, held by SoftBank Vision Fund and Delta Fund or investments inwhich transfer is agreed to (gain and loss on investments at SoftBank Vision Fund and Delta Fund), andoperating expenses incurred by SoftBank Vision Fund, Delta Fund, and SBIA.
The SoftBank segment provides, mainly through SoftBank Corp., mobile communications services, sale ofmobile devices, fixed-line telecommunication services such as broadband services in Japan, and through Yahoo
Japan Corporation, internet advertising and e-commerce business.
The Sprint segment provides, through Sprint, mobile communications services, sale and lease of mobile devices,sale of mobile device accessories, and fixed-line telecommunications services in the U.S.
The Arm segment provides, through Arm, designs of microprocessor intellectual property and related technology,
the sale of software tools, and software services.
The Brightstar segment provides, through Brightstar, distribution of mobile devices overseas.
Information on business segments which are not included in the reportable segments is classified in “Other.”“Other” includes mainly Fortress, the Fukuoka SoftBank HAWKS-related operations, and PayPay Corporation.
“Reconciliations” includes an elimination of intersegment transactions and the corporate general expenses
unallocated to each reportable segment. Expenses arising mainly from SoftBank Group Corp. and SB Group US,
Inc., which manage and supervise investment activities in the Internet, communication, and media fields overseas,
are included in corporate general expenses.
Segment information for the three-month period ended June 30, 2018 is presented based on the reportablesegments after the aforementioned change.
(2) Net sales and income of reportable segments
Income of reportable segments is defined as “Operating income.” Intersegment transaction prices are determined
under the same general business conditions as applied for external customers.
Under the Company’s management system, SoftBank Group Corp., a strategic holding company, exercises
overall control over its investment portfolio comprising the Group companies. Based on this system, theCompany focuses on the maximization of shareholder value (calculated as equity value of holdings – net
interest-bearing debt) over the medium to long term, and endeavors to increase the equity value of holdings. As aresult, EBITDA and adjusted EBITDA which were previously described, are not described for the three-month
period ended June 30, 2019 as they are no longer considered as major management indicators provided for
periodic reports to the management.

47

SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2019

Income and loss, which is not attributable to operating income and loss, such as financial cost and income andloss on equity method investments, is not managed by each reportable segment and therefore these income andlosses are excluded from segment performance.

For the three-month period ended June 30, 2018

(Millions of yen)

Reportable segments
SoftBank Vision
Fund and Delta Fund

SoftBank

SprintArm

Total

Brightstar

Net sales
Customers-

1,090,143

842,488

41,533

247,406

2,221,570

Intersegment

-

6,061

40,754

1

6,422

53,238

Total
Segment income-

1,096,204

883,242

41,534

253,828

2,274,808

239,944

260,170

98,108145,192(5,345)738,0696

124,664

253,535

18,537

1,179

397,921---

161,347-

161,347

Depreciation andamortization
Gain relating to loss ofcontrol over subsidiaries

Other

Reconciliations

Consolidated

51,213-2,272,783

Net sales
Customers
Intersegment

2,467(55,705)-

Total

53,680(55,705)

2,272,783

Segment income(7,924)(15,152)

714,993

6,905

327

405,153--

161,347

Depreciation andamortization
Gain relating to loss ofcontrol over subsidiaries

48

SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2019

For the three-month period ended June 30, 2019

(Millions of yen)

Reportable segments
SoftBank Vision
Fund and Delta Fund

SoftBank

SprintArm

Brightstar

Total

Net sales
Customers-

1,162,581

861,975

45,843

227,5092,297,908

Intersegment

-

2,005

33,66888

5,861

41,622

Total-

1,164,586

895,643

45,931

233,370

2,339,530

Segment income

397,630

276,649

63,373(11,571)(1,248)724,833

Depreciation andamortization

52

164,949

302,294

17,917

1,771

486,983

Reconciliations

Consolidated
2,336,397

Other
Net sales
Customers

38,489-Intersegment

4,409(46,031)-

Total

42,898(46,031)2,336,397

Segment income(22,222)(13,795)

688,816

Depreciation andamortization

9,912

303

497,19849

SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2019

3. SoftBank Vision Fund and Delta Fund business(1) Income and loss arising from the SoftBank Vision Fund and Delta Fund business included in the condensed interim
consolidated statement of incomea. Overview
Income and loss arising from the SoftBank Vision Fund and Delta Fund business in the condensed interim
consolidated statement of income consist of income and loss arising from all entities, which are various entities
comprising SoftBank Vision Fund and Delta Fund, each General Partner, and SBIA as a manager of each fund.
Income and loss arising from SoftBank Vision Fund and Delta Fund attributable to Third-Party Investors areaccounted for as a component of non-operating income or loss, and presented as “Change in third-party interests in
SoftBank Vision Fund and Delta Fund.” As a result, income before income tax from the SoftBank Vision Fund andDelta Fund business includes income and loss attributable to the Company as a limited partner, management feesand performance fees to SBIA.
b. Income and loss arising from the SoftBank Vision Fund and Delta Fund business
The following table shows income and loss arising from the SoftBank Vision Fund and Delta Fund business.
(Millions of yen)Three-month period ended
June 30, 2018

Three-month period ended
June 30, 2019245,8021,409
247,211

408,514
5,905
414,419(7,267)(16,789)

239,944397,630

Finance cost (interest expenses)2(5,031)(1,668)Foreign exchange gain and loss

(40)

232

1,197

-

(72,889)(184,488)

(276)

591

162,905

212,297

Gain and loss on investments at SoftBank Vision
Fund and Delta Fund1
Unrealized gain and loss on valuation of
investments
Change in valuation for the fiscal year
Interest and dividend income from investments
Operating expenses
Operating income from SoftBank Vision Fundand Delta Fund

Derivative gain and loss
Change in third-party interests in SoftBank Vision
Fund and Delta Fund
Other non-operating income and loss
Income before income tax

Notes:
1.“Realized gain and loss on sales of an investment” is not recorded for the thee-month period ended June 30, 2018
and the three-month period June 30, 2019.
2. The amount before elimination of inter-company transactions is ¥(1,901) million for the three-month period
ended June 30, 2019.

(2) Third-party interests in SoftBank Vision Fund and Delta Funda. Terms and conditions of contribution from/ distribution to Limited Partners
Contributions by the Limited Partners are classified as “Equity” and “Preferred Equity” depending on the terms
and conditions of distribution. Preferred Equity is prioritized over Equity with regard to distribution and return ofcontribution.
Performance-based distributions attributed to Limited Partners, consisting of the Company and Third Party
Investors, are calculated using the net proceeds from the investment performance of SoftBank Vision Fund and50

SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2019

Delta fund. Those performance-based distributions and Performance fees attributed to SBIA will be allocatedusing the method specified in the Limited Partnership Agreement. The amount of performance-based distribution
attributed to Limited Partners will be allocated to each Limited Partner based on the proportion of their respective
Equity contribution. The amount of performance-based distribution is paid to each Limited Partner after SoftBank
Vision Fund and Delta Fund receives cash through dividend, or disposition or monetization of investments.
Fixed distributions are defined as distributions of Preferred Equity holders which are calculated equal to a 7%
rate per annum based on their contribution. The fixed distributions are made every last business day of the months
June and December.
In the following table, Third-party Investors contributing Equity are defined as “Investors entitled toperformance-based distribution” and Third-party Investors contributing Preferred Equity are defined as “Investors
entitled to fixed distribution.”b. Changes in interests attributable to Third-Party Investors
Changes in interests attributable to Third-Party Investors (“Third-party interests in SoftBank Vision Fund andDelta Fund”) are as follows:(Millions of yen)(For reference purposes only)
Links with the condensed interim consolidated
financial statements

Consolidated statement Consolidated statementof incomeof cash flows

Third-party interests(Total of current liabilities andnon-current liabilities)(Negative figures represent (Negative figures represent
expenses)
payments)(Breakdown)
As of April 1, 2019
Contributions from third-party
investors

4,136,965
345,672-

345,672

Changes in third-party interests
Attributable to investors entitled to
fixed distribution
Attributable to investors entitled toperformance-based distribution

184,488(184,488)-

Distribution to third-party investors(68,409)-(68,409)

38,997
145,491

Fixed distributions(68,409)

Performance-based distributions-

Repayment to third-party investors
Exchange differences on translating
third-party interests*

-

-

-

(128,552)--

As of June 30, 2019

4,470,164

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

c. Uncalled committed capital from Third-Party Investors
Uncalled committed capital from Third-Party Investors as of June 30, 2019 is $27.5 billion.
(3)

Management fees and performance fees to SBIA
Terms and conditions of management fees and performance fees to SBIA, included in income before income tax
from the SoftBank Vision Fund and Delta Fund business, are as follows.
a. Management fees to SBIAManagement fees to SBIA are, in accordance with Limited Partnership Agreements, calculated by multiplying 1%

51

SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2019per annum by Equity contributions and paid to SBIA by each fund quarterly. A clawback provision is attached tothe management fees received, which is triggered under certain conditions based on future investment
performance.
b. Performance fees to SBIA
Same as the performance-based distributions, the amount of the performance fees to SBIA is calculated using theallocation method as specified in the Limited Partnership Agreement. SBIA will receive the performance fees
when SoftBank Vision Fund and Delta Fund receive cash through disposition, dividend and monetization of aninvestment.
With regard to the performance fee receipt, the performance fees to SBIA from disposition and monetization of
investments are not paid to SBIA during the investment period of SoftBank Vision Fund (in principle, up to
November 20, 2022), instead equivalent amounts to the performance fees attributable to SBIA are temporarily
paid to the Limited Partners during the period, under the Limited Partnership Agreement. After the investment
period, the equivalent amount is paid to SBIA as a performance fee deducting from the performance-based
distributions to the Limited Partners in monetization of investment in post-investment period. In addition, theperformance fees received, which is triggered under certain conditions based on future investment performance,
are subject to a clawback provision.

4. Assets classified as held for sale(1) Sale of Alibaba shares by variable prepaid forward contract
Alibaba shares of ¥224,201 million related to the settlement of a variable prepaid forward contact using Alibaba
shares was recorded as of March 31, 2019 and the contract was settled with Alibaba shares on June 3, 2019. The
details are described in “Note 14. Gain relating to settlement of variable prepaid forward contract using Alibaba
shares.”(2) Sale and leaseback contract for Sprint headquarters
Sprint entered into a sale and leaseback contract for their corporate headquarters (buildings, land, and other) andaccordingly, the related assets of ¥25,040 million were reclassified to “Assets classified as held for sale” for thethree-month period ended June 30, 2019. The assets were measured at fair value after deducting the sale cost andwere less than their carrying amounts. As a result, an impairment loss was recorded in “Other operating loss.” Thedetails are described in “Note 12. Other operating loss.” The sale closed and the leaseback began on July 9, 2019.

5. Property, plant and equipment
The components of the carrying amounts of property, plant and equipment are as follows:(Millions of yen)

As ofMarch 31, 2019
251,786
2,293,388
937,18188,304387,408
112,637
4,070,704

Buildings and structures
Telecommunications equipment
Furniture, fixtures, and equipment
Land
Construction in progress
Other
Total

As of
June 30, 2019
182,769
1,286,283
867,071
80,988359,393
96,7632,873,267

Note:* As a result of the adoption of IFRS 16, ¥1,157,008 million of property, plant and equipment relating to lease transactions
that were previously classified as a finance lease, has been reclassified to right-of-use assets.

52

SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2019

6. Intangible assets
The components of the carrying amounts of intangible assets are as follows:(Millions of yen)

As ofMarch 31, 2019
Intangible assets with indefinite useful lives
FCC licenses
Trademarks
Other
Intangible assets with finite useful lives
SoftwareTechnologies
Customer relationships
Spectrum migration costs
Management contracts1
FCC licenses2
Trademarks
Favorable lease contracts3
Other
Total

As of
June 30, 2019

4,155,126
693,861
12,763

4,035,635
674,732
12,396

739,879
471,884
249,028
159,522
94,72368,092
56,726
13,226
177,365
6,892,195

739,420434,777
221,740
156,834
87,352
65,16554,233179,088
6,661,372

Notes:
1. The management contracts reflect excess earnings in the future expected from the agreements which Fortress entered into
regarding the management of assets under their funds.
2. As a result of the adoption of IFRS 16, the presentation of favorable lease contracts related to FCC licenses that wereidentified in business combinations in the past and were previously included in “Favorable lease contracts” has beenchanged to “FCC licenses” with finite useful lives.
3. As a result of the adoption of IFRS 16, favorable lease contracts, except for those related to FCC licenses, that werepreviously recognized as intangible assets have been reclassified to relevant right-of-use assets.

7. Other current liabilities
The components of other current liabilities are as follows:(Millions of yen)

As ofMarch 31, 2019
252,812428,796
35,339201,979
112,090
69,97757,362
1,158,355

Contract liabilities
Withholding income tax*
Deferred revenue
Short-term accrued employee benefits
Consumption tax payable and otherAccrued interest expense
Other
Total

As of
June 30, 2019
253,463
41,99034,076
142,539
96,65081,52039,647
689,885

Note:*Payment of withholding income tax of ¥422,648 million related to dividends within the group companies was made in
April 2019.

53

SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2019

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

As ofMarch 31, 2019
Current
Short-term borrowings1
Commercial paper
Current portion of long-term borrowings2
Current portion of corporate bonds
Current portion of lease obligations3Current portion of financial liabilities relating to sale ofshares by variable prepaid forward contract4
Current portion of installment payables
Total
Non-current
Long-term borrowings1,2
Corporate bonds
Lease obligations3
Installment payables
Total

As of
June 30, 2019

499,179
42,000820,899
1,042,253
334,517

1,652,095
99,000871,616
645,716-730,601-

11,5113,480,960

9,422
3,277,849

5,102,091
6,538,785
557,955
5,315
12,204,146

5,035,291
6,838,075
4,353
11,877,719

Notes:
1. The amounts of SoftBank Vision Fund and Delta Fund interest-bearing debt included in the above components ofinterest-bearing debt are as follows:(Millions of yen)

As ofMarch 31, 2019
Current
Short-term borrowings
Total
Non-current
Long-term borrowings
Total
SoftBank Vision Fund and Delta Fund interest-bearing debt
(before elimination of inter-company transactions)Eliminated amount of inter-company transactions
SoftBank Vision Fund and Delta Fund interest-bearing debt
(after elimination of inter-company transactions)

As ofJune 30, 2019

900,406
900,406

990,210990,210

12,764
12,764

12,396
12,396913,170

1,002,606(876,599)(875,196)

36,571

127,410

2. In the SoftBank segment, the Company is a party to lease transactions of software mainly in relation totelecommunications equipment. The Company has not applied IFRS 16 to leases of intangible assets. Accordingly,
liabilities associated with the aforementioned transactions that were previously recognized as lease obligations are,after applying IFRS 16, accounted for as financial liabilities under IFRS 9 and are included in the current portion of
long-term borrowings and long-term borrowings. Consequently, the related amounts as of March 31, 2019 have been
restated accordingly. The current portion of long-term borrowings and long-term borrowings as of June 30, 2019
include ¥102,610 million (¥102,879 million as of March 31, 2019) and ¥179,752 million (¥191,297 million as ofMarch 31, 2019) of borrowings from these transactions, respectively.

54

SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2019

3. As a result of the adoption of IFRS 16, liabilities that were previously recorded as “Lease obligations” are reclassified
to “Lease liabilities” and are presented separately in the condensed interim consolidated statement of financial position.
4. Decrease was made due to the settlement of the variable prepaid forward contract using Alibaba shares. The details aredescribed in “Note 14. Gain relating to settlement of variable prepaid forward contract using Alibaba shares.”(2) Components of proceeds in short-term interest-bearing debt, net
The components of “Proceeds in short-term interest-bearing debt, net” in the condensed interim consolidated
statement of cash flows are as follows:(Millions of yen)Three-month period ended Three-month period ended
June 30, 2018
June 30, 2019
7,612
411,575(7,000)57,000612
468,575

Net increase of short-term borrowings
Net (decrease) increase of commercial paper
Total(3) Components of proceeds from interest-bearing debt
The components of “Proceeds from interest-bearing debt” in the condensed interim consolidated statement ofcash flows are as follows:(Millions of yen)Three-month period ended Three-month period ended
June 30, 2018
June 30, 2019588,956
1,518,275
722,744
500,000

Proceeds from borrowings
Proceeds from issuance of corporate bonds
Proceeds from sale-leaseback of newly acquired
equipment
Total

124,983-

1,436,683

2,018,275(4) Components of repayment of interest-bearing debt
The components of “Repayment of interest-bearing debt” in the condensed interim consolidated statement of cash
flows are as follows:(Millions of yen)Three-month period ended Three-month period ended
June 30, 2018
June 30, 2019
(499,775)(712,884)(757,640)(490,235)(125,106)(6,477)(3,025)(1,388,998)(1,206,144)

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

9. Derivative financial liabilities (current liabilities)
Mainly it was decreased due to the settlement of a variable prepaid forward contract using Alibaba shares. The details
are described in “Note 14. Gain relating to settlement of variable prepaid forward contract using Alibaba shares.”55

SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2019

10. Foreign currency exchange rates
Exchange rates of the major currencies used for translating financial statements of foreign operations are as follows:(1) Rate at the end of the period
As ofMarch 31, 2019110.99144.98(Yen)
As ofJune 30, 2019107.79136.57

Three-month period ended
June 30, 2018108.71147.54(Yen)
Three-month period ended
June 30, 2019110.00140.88USD
GBP(2) Average rate for the quarter

USD
GBP

11. Equity(1) Capital surplus
On June 27, 2019, Yahoo Japan Corporation issued 1,511,478,050 new shares for ¥456.5 billion to SoftBank
Corp. through a third-party allotment (the “Third-Party Allotment”). Yahoo Japan Corporation also implemented
a tender offer for its own shares from May 9, 2019 to June 5, 2019 (the “Tender Offer”), and SoftBank Group
Corp. accepted the Tender Offer and tendered its holding of common shares of Yahoo Japan Corporation, held by
its wholly-owned subsidiary SoftBank Group Japan Corporation. As a result, 1,792,819,200 of these shares(equivalent to ¥514.5 billion) were sold to Yahoo Japan Corporation on June 27, 2019.
As a result of the Third-Party Allotment and the Tender Offer, the ownership percentage in Yahoo Japan
Corporation by the Company has changed from 48.16% (ownership percentage as of March 31, 2019) to 45.52%.
Subsequently, capital surplus increased by ¥91,431 million as “Changes in interests in subsidiary.”(2) Other equity instruments
On July 19, 2017, the Company issued USD-denominated Undated Subordinated Non-Call 6 years Resettable
Notes and USD-denominated Undated Subordinated Non-Call 10 years Resettable Notes (collectively, the“Hybrid Notes”).
The Hybrid Notes are classified as equity instruments in accordance with IFRSs because the Company has theoption to defer interest payments, the notes have no maturity date, and the Company has an unconditional right toavoid delivering cash or another financial asset except for distribution of residual assets on liquidation.
(3) Treasury stock
Changes in treasury stock are as follows:(Thousands of shares)Three-month period ended Three-month period ended
June 30, 2018
June 30, 2019
Balance at the beginning of the period
Increase during the year

1

Decrease during the year

2

Balance at the end of the period

56

11,162

46,827

1

28,617-(56,306)

11,163

19,138

SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2019

Notes:
1. For the three-month period ended June 30, 2019, due to a purchase of treasury stock under the resolution passed
at Board of Directors meeting held on February 6, 2019, the number of treasury stock increased by 19,044
thousand shares (amount purchased ¥215,931 million). In addition, under the resolution passed at the Board of
Directors meeting held on May 9, 2019, the Company conducted a share split at a ratio of two-for-one effective
June 28, 2019 and the number of treasury stock increased by 9,573 thousand shares.
2. Under the resolution passed at Board of Directors meeting held on May 30, 2019, the Company retired its
treasury stock of 55,753 thousand shares on June 10, 2019. As a result of the transaction, retaining earnings andtreasury stock decreased by ¥558,136 million, respectively.

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

As ofMarch 31, 2019

As ofJune 30, 2019

Equity financial assets at FVTOCI

6,661

5,674

Debt financial assets at FVTOCI

267

366

Cash flow hedges
Exchange differences on translating
foreign operations(45,791)(22,878)

329,131(109,808)

290,268(126,646)

Three-month period ended
June 30, 2018

Three-month period ended
June 30, 2019(13,445)(24,775)-(22,725)

3,060(3,810)
(9)

616
(185)

(232)

827

(14,436)(46,242)Total

12. Other operating loss
The components of other operating income and loss are as follows:(Millions of yen)

Sprint segment
Loss on disposal of property, plant andequipment1
Impairment loss on assets classified as held for
sale2
Gain on contract termination
Reversal of favorable lease
Other
Other
Income and loss on equity method investments
at Fortress
Total

Notes:
1. ¥24,775 million of loss resulted from the write-off of leased devices related to lease cancellations prior to the endof the scheduled customer lease terms, where customers did not return the devices to Sprint, are recognized forthe three-month period ended June 30, 2019.
2. Sprint entered into a sale and leaseback contract for their corporate headquarters (buildings, land, and other) andthe related assets were reclassified to “Assets classified as held for sale” for the three-month period ended June 30,
2019. Accordingly, ¥22,725 million of impairment loss was recorded as the assets were measured at fair value
after deducting the sale cost and were less than their carrying amounts. The fair value was calculated based on thesale price and classified as level 3 within the fair value hierarchy.

57

SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2019

13. Finance cost
The components of finance cost are as follows:(Millions of yen)Three-month period ended
June 30, 2018

Three-month period ended
June 30, 2019

(148,467)(153,846)Interest expenses

14. Gain relating to settlement of variable prepaid forward contract using Alibaba shares
On June 3, 2019, a variable prepaid forward contract, which West Raptor Holdings, LLC (“WRH LLC”), a
wholly-owned subsidiary of the Company, entered into with Mandatory Exchangeable Trust (the “Trust”) on June
10, 2016, in order to sell Alibaba shares, was settled by 73,240,200 shares of Alibaba (equivalent to 2.8% of voting
right of Alibaba as of March 31, 2019). Subsequently, ¥1,218,527 million of gain relating to settlement ofvariable prepaid forward contract using Alibaba shares was recorded for the three-month period ended June 30,
2019.
Alibaba shares held by WRH LLC were pledged as collateral under the variable prepaid forward contract andsubsequently, the relevant collateral contract was terminated. Alibaba shares pledged as collateral were recorded as“Assets classified as held for sale” of ¥224,201 million and “Investments accounted for using the equity method”
of ¥39,256 million, were included in the consolidated statement of financial position as of March 31, 2019.
The details of the variable prepaid forward contract are as follows.
WRH LLC entered into the variable prepaid forward contract on June 10, 2016, and received proceeds of ¥578,436
million ($5.4 billion) as advances received on the sale.
The Trust, on the other hand, utilized Alibaba shares scheduled to be transferred from WRH LLC at the time ofsettlement under the contract and issued $6.6 billion of Mandatory Exchangeable Trust Securities (“Trust
Securities”) which are mandatorily exchangeable into American Depositary Shares (“ADSs”) of Alibaba. The
proceeds from the sale received by WRH LLC from the Trust was $5.4 billion, which is after certain amounts fromthe $6.6 billion total of Trust Securities were deducted in order to purchase U.S. Treasury securities, which would
fund distributions on the Trust Securities, and cover expenses for the issuance of the Trust Securities.
The settlement of the Alibaba shares based on the variable prepaid forward contract is conducted concurrently
with the exchange of Trust Securities. At the exchange date (June 3, 2019), Trust Securities are exchanged for acertain number of ADSs, determined by reference to the trading price of the ADSs at that time, and the number of
Alibaba shares sold by the variable prepaid forward contract is determined by this number of ADSs. A cap and afloor are set for the number of shares settled, and the variable prepaid forward contract is classified as a hybrid
financial instrument with embedded derivatives of a collar transaction.
The Company accounts for the variable prepaid forward contract by bifurcating the main contracts and embedded
derivatives. The Company received ¥578,436 million and initially recognized ¥674,023 million as financial
liabilities relating to the sale of shares through the variable prepaid forward contract and ¥95,587 million as
derivative assets. Subsequent to initial recognition, financial liabilities relating to the sale of shares through thevariable prepaid forward contract were measured at amortized cost and embedded derivatives were measured atfair value.

58

SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2019

Outline of the transaction
subsidiary
wholly-owned subsidiary
third party to
SoftBank

West Raptor Holdings, LLC
Approximately $5.4 billion
for advances received
for the sale of Alibaba sharesby variable prepaid forward contract

Alibaba shares pledged as collateralby variable prepaid forward contract

Mandatory Exchangeable TrustOffering of Mandatory Exchangeable
Trust Securities (“Trust Securities”)$6.6 billion for the total issuanceamount of Trust Securities
Investors

15. Other non-operating income (loss)
The components of other non-operating income and loss are as follows:(Millions of yen)Interst income

Three-month period ended
June 30, 2018
6,623

Three-month period ended
June 30, 201910,490(14,538)-(4,510)(12,425)

(588)
9,902

Loss on redemption of corporate bonds
Other
Total

16. Supplemental information to the condensed interim consolidated statement of cash flows(1) Income taxes paid
For the three-month period ended June 30, 2019
Payment of withholding income tax related to dividends within the group companies of ¥422,648 million, payment
of income tax mainly related to gain on sales of SoftBank Corp. shares held by SoftBank Group Japan Corporationin December 2018 of ¥321,290 million, and payment of income tax related to deemed dividends on sales of Yahoo
Japan Corporation shares held by SoftBank Group Japan Corporation due to an acquisition of its own sharesthrough the Tender Offer by Yahoo Japan Corporation of ¥78,801 million are included. Such withholding income
tax of ¥422,648 million was refunded in July 2019.
(2) Distribution and repayment from SoftBank Vision Fund and Delta Fund to third-party investors
For the three-month period ended June 30, 2019
The distribution from SoftBank Vision Fund and Delta Fund to third-party investors is ¥(68,409) million. The
details are described in “(2) Third-party interests in SoftBank Vision Fund and Delta Fund” under “Note 3.
SoftBank Vision Fund and Delta Fund business.”(3) Non-cash transactions related to sale of Alibaba shares by variable prepaid forward contract
For the three-month period ended June 30, 2019
On June 3, 2019, ¥715,044 million of current portion of financial liabilities relating to sale of shares by variable
prepaid forward contract and ¥474,468 million of derivative financial liabilities (current liabilities) recognized forsale of Alibaba shares by variable prepaid forward contract were settled with Alibaba shares. The details aredescribed in “Note 14. Gain relating to settlement of variable prepaid forward contract using Alibaba shares.”59