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

SoftBank Group Corp.
Consolidated Financial Report
For the Nine-month Period Ended December 31, 2019 (IFRS)Tokyo, February 12, 2020

1.

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

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

OperatingincomeIncomebefore incometax

Net income

Net income
Total
attributable tocomprehensive
owners of theincomeparentAmount%AmountAmountAmountNine-month period ended¥7,089,804 (1.1) ¥(12,964)
December 31, 2019-

Net sales
Amount%%%%Amount%¥1,345,378 (25.7) ¥656,460 (58.3) ¥476,587 (69.0) ¥510,581 (63.8)

Nine-month period ended¥7,168,452 5.2 ¥1,859,007 61.8 ¥1,809,834 221.0 ¥1,574,457 30.9 ¥1,538,396 51.6 ¥1,408,776 (14.2)
December 31, 2018

Basic earnings per
share (Yen)

Diluted earnings per
share (Yen)

Nine-month period ended
December 31, 2019

¥218.55¥212.47

Nine-month period ended
December 31, 2018¥694.86¥690.38Note:
The Company conducted a share split at a ratio of two-for-one effective June 28, 2019. “Basic earnings per share” and “Diluted
earnings per share” are calculated assuming that the share split was conducted at the beginning of the previous fiscal year.

(2) Financial Position

Total assets

Total equity

Equityattributable toowners of theparentAs of December 31, 2019

¥39,406,437¥9,191,419¥7,703,918

19.5

As of March 31, 2019

¥36,096,476¥9,009,204¥7,621,481

21.1

2.

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

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 from SoftBank Group Corp. and dividend
paid to SoftBank Group Corp. to total amount of operating revenue of SoftBank Group Corp.
For fund-type subsidiaries, the amount of net assets based on financial statements prepared in accordance with thecorresponding laws and practices is used to determine the applicability of Cabinet Office Ordinance on Disclosure of
Corporate Affairs, etc. Article 19, Paragraph (10), Item (ii).
(2) Changes in accounting policies and accounting estimates[1] Changes in accounting policies required by IFRSs: Yes[2] Changes in accounting policies other than those in [1]: No[3] Changes in accounting estimates: Yes
Please refer to page 41 “(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 December 31, 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 December 31, 2019:18,454,576 shares
As of March 31, 2019:93,653,848 shares[3] Number of average shares outstanding during nine-month period (April-December):
As of December 31, 2019:
2,075,041,260 shares
As of December 31, 2018:
2,179,557,470 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 nine-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 February 12, 2020 (JST), the Company will hold an earnings results briefing for the media, institutional investors, andfinancial institutions. This earnings results briefing will be broadcast live on the Company’s website in both Japanese andEnglish at https://group.softbank/en/corp/irinfo/presentations/. The Data Sheet will also be posted on the website on thesame day at the same site.

SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 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. 13(a) SoftBank Vision Fund and Other SBIA-Managed Funds Segment ............................................................ P. 14(b) SoftBank Segment ....................................................................................................................................... P. 19(c) Sprint Segment ............................................................................................................................................ P. 21(d) Arm Segment .............................................................................................................................................. P. 23(e) Brightstar Segment ...................................................................................................................................... P. 27(f) Other ............................................................................................................................................................ P. 27(2) Overview of Financial Position ............................................................................................................................ P. 28(3) Overview of Cash Flows ...................................................................................................................................... P. 37(4) Forecasts ............................................................................................................................................................... P. 40
2. Notes to Summary Information ............................................................................................................................... P. 41(1) Changes in Accounting Policies ........................................................................................................................ P. 41(2) Changes in Accounting Estimates ..................................................................................................................... P. 41
3. Condensed Interim Consolidated Financial Statements and Primary Notes ............................................................ P. 42(1) Condensed Interim Consolidated Statement of Financial Position .................................................................... P. 44(2) Condensed Interim Consolidated Statement of Income and Condensed Interim Consolidated Statement ofComprehensive Income ..................................................................................................................................... P. 46(3) Condensed Interim Consolidated Statement of Changes in Equity ................................................................... P. 50(4) Condensed Interim Consolidated Statement of Cash Flows .............................................................................. P. 54(5) Significant Doubt about Going Concern Assumption ....................................................................................... P. 56(6) Notes to Condensed Interim Consolidated Financial Statements ...................................................................... P. 56

1

SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 2019

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
WeWork
The We Company
The first quarter
Three-month period ended June 30, 2019
The second quarter
Three-month period ended September 30, 2019
The third quarter
Three-month period ended December 31, 2019
The period
Nine-month period ended December 31, 2019
The fiscal year
Fiscal year ending March 31, 2020
The previous fiscal year
Fiscal year ended March 31, 2019

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

USD / JPY

Fiscal year ending March 2020

Q1

Q2

Q3

Q4

Q1

Q2

Q3

¥108.71¥111.55¥112.83¥110.46¥110.00¥107.70¥108.98

Rates at the end of the period
March 31, 2019

December 31, 2019

USD / JPY

¥110.99¥109.56

GBP / JPY

¥144.98¥143.48

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.

2SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 2019

Main impacts of adopting IFRS 16
Consolidated Statement of Financial Position
On the date of adoption of IFRS 16, total assets increased by ¥1,336,695 million, total liabilities by ¥1,324,055 million,
and total equity by ¥12,640 million. This was mainly due to the recording of right-of-use assets and lease liabilities 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.

1. Results of Operations(1) Overview of Results of Operations (Nine-month period ended December 31, 2019)
1. Highlights of results
 Operating loss of ¥13.0 billion (deteriorated ¥1.9 trillion yoy)
- Operating loss from SoftBank Vision Fund and other SBIA-managed funds was ¥797.8 billion, reflecting
unrealized valuation loss (net) of ¥727.3 billion recorded for a decrease in the fair values of investments heldby SoftBank Vision Fund at the third quarter-end, such as Uber and WeWork and its three affiliates.1- The SoftBank segment showed robust growth, with operating income increasing 6.6% yoy.
 Net income attributable to owners of the parent of ¥476.6 billion (decreased 69.0% yoy)
- Income on equity method investments of ¥467.4 billion, including a gain of ¥277.2 billion associated with thereceipt of Ant Financial shares by Alibaba.
- Dilution gain from changes in equity interest of ¥332.2 billion recorded in conjunction with a new issuance ofshares by Alibaba upon its listing in Hong Kong.
- 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 reversal ofdeferred tax assets.
- Change in third-party interests in SoftBank Vision Fund and other SBIA-managed funds of ¥190.0 billion- Finance cost of ¥456.6 billion*- Loss from financial instruments at FVTPL (net) of ¥357.4 billion*, reflecting a valuation loss of ¥359.2
billion* recorded for the investment in WeWork held by a wholly owned subsidiary of the Company.
* recorded as a cost for the period

2. Highlights of operations
 SoftBank Vision Fund: Held 88 investments as of the third quarter-end.
 Z Holdings Corporation concluded a definitive agreement relating to its business integration with LINE
Corporation in December 2019.
 Merger of Sprint and T-Mobile: Parties won in court in litigation seeking injunction prohibiting the closing of
the merger; parties moving to finalize the merger.*1Note:
1. See “Progress on the Merger of Sprint and T-Mobile” under “(c) Sprint Segment” in “b. Results by Segment” for details.

3SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 2019a. Consolidated Results of Operations(Millions of yen)

Nine months ended December 31
2018

2019

Change7,168,452

7,089,804(78,648)(1.1%) A

1,050,215

784,799(265,416)(25.3%) B

808,792
1,859,007(797,763)(12,964)(1,606,555)(1,871,971)- C-

Finance cost

(479,396)(456,616)

22,780(4.8%) D

Income on equity method investments
Dilution gain from changes in equity
interest

257,533

467,408

209,875

81.5% E

33,064332,230

299,166

904.8% F

Foreign exchange gain (loss)

16,908(10,320)(27,228)-

Derivative gain (loss)
Gain relating to settlement of variable prepaid forward contract using Alibaba shares
Gain (loss) from financial instruments at
FVTPL*1
Change in third-party interests in SoftBank
Vision Fund and other SBIA-managed
funds*2

544,574(19,392)(563,966)- G-

1,218,527

1,218,527- H

48,964(357,353)(406,317)-(453,529)

190,005

643,534-

Other non-operating loss

(17,291)(6,147)

11,144-

Income before income tax
Income taxes

1,809,834(235,377)

1,345,378(688,918)(25.7%)
192.7% J

Net income

1,574,457

656,460(464,456)(453,541)

Net income attributable to owners of the parent

1,538,396

476,587(1,061,809)(69.0%)

Total comprehensive income
Comprehensive income attributable to ownersof the parent

1,408,776

510,581

1,356,843

344,500

Net sales
Operating income (excluding income from
SoftBank Vision Fund and other SBIAmanaged funds)
Operating income from SoftBank Vision
Fund and other SBIA-managed funds
Operating income(917,997)(898,195)(1,012,343)

Change %I(58.3%)(63.8%)(74.6%)

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 other SBIA-managed funds.
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 SoftBank Vision Fund and other SBIAmanaged funds, net of management and performance fees payable to SBIA, a wholly owned subsidiary of the Company, andoperating and other expenses of SoftBank Vision Fund and other SBIA-managed funds. See “(2) Third-party interests in SoftBank
Vision Fund and Delta Fund” under “3. SoftBank Vision Fund and other SBIA-managed funds business” in “(6) Notes to Condensed Interim Consolidated Financial Statements” in “3. Condensed Interim Consolidated Financial Statements and Primary
Notes” for details.

4SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 2019

The following is an overview of main components and components that are noteworthy.
A Net Sales
Net sales increased in the SoftBank segment, but decreased in the Sprint, Arm, and Brightstar segments.
B Operating Income (Excluding Income from SoftBank Vision Fund and Other SBIA-Managed Funds)
Segment income improved ¥50,034 million in the SoftBank segment and ¥7,139 million in the Brightstar segment.
However, segment income deteriorated ¥117,510 million in the Sprint segment, ¥179,864 million in the Arm segment,and ¥26,150 million in the Other segment. Segment income in the Arm segment in the same period of the previous
fiscal year included gain relating to loss of control over subsidiaries of ¥176,261 million, which was recognized as aresult of Arm’s Chinese subsidiary becoming a joint venture.

C Operating Income from SoftBank Vision Fund and Other SBIA-Managed Funds
Unrealized loss on valuation of ¥727,327 million from investments held by SoftBank Vision Fund at the third quarterend was recorded due to a decrease in the fair values of investments including Uber Technologies, Inc. (“Uber”) andWeWork and its three affiliates.1 See “(a) SoftBank Vision Fund and Other SBIA-Managed Funds Segment” under“b. Results by Segment” for details.

As a result of B and C, operating loss was ¥12,964 million, deteriorating ¥1,871,971 million year on year.

D Finance Cost
Interest expenses increased ¥15,788 million at SoftBank Corp. but decreased ¥52,594 million at SoftBank Group
Corp.2 This was mainly because SoftBank Corp. borrowed ¥1,600 billion through a senior loan 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. This early repayment of borrowings resulted ina full amortization of borrowing expenses of ¥24,051 million, which also pushed up interest expense at SoftBank
Group Corp. in the same period of the previous fiscal year.

E Income on Equity Method Investments
Income on equity method investments related to Alibaba increased ¥187,974 million (67.7%) year on year, to¥465,445 million. Alibaba received newly issued shares (a 33% equity interest) of Ant Small and Micro Financial
Services Group Co., Ltd. (“Ant Financial,” operator of the electronic payment service Alipay) in September 2019,
pursuant to the 2014 share and asset purchase agreement, as amended, among Alibaba, Ant Financial, and others.
The consideration paid by Alibaba to receive the newly issued 33% equity interest in Ant Financial was funded by
payments from Ant Financial and its subsidiaries to Alibaba in consideration for certain intellectual property rights
and assets held by Alibaba. Following this, Alibaba recorded a gain of CNY 69.2 billion, which was the results fromthe transfer of such intellectual property rights and assets to Ant Financial and the basis difference determined based

5SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 2019

on Alibaba’s share of Ant Financial’s net assets, net of its corresponding deferred tax effect. This boosted income onequity method investment related to Alibaba by ¥277,175 million.

F Dilution Gain from Changes in Equity Interest
On November 26, 2019, Alibaba listed its shares on The Stock Exchange of Hong Kong Limited and issued 575
million new shares, including a subsequent overallotment. Mainly due to this impact, the Company recorded a dilution gain from changes in equity interest of ¥331,870 million. There were no changes in the number of shares heldby the Company and its wholly owned subsidiaries (5,390 million shares in total).
G Derivative Loss
Derivative loss of ¥29,596 million was recorded in relation to a forward transaction embedded in a variable prepaid
forward contract using Alibaba shares concluded between the Company’s wholly owned subsidiary, West Raptor
Holdings, LLC, and financial institution in November 2019. For details of the contract, see “Note 7” under “(1)Components of interest-bearing debt” in “9. Interest-bearing debt” in “(6) Notes to Condensed Interim Consolidated
Financial Statements” in “3. Condensed Interim Consolidated Financial Statements and Primary Notes.” In the same
period of the previous fiscal year, a derivative gain of ¥365,857 million was recorded in relation to a collar transaction
embedded in a variable prepaid forward contract using Alibaba shares concluded between West Raptor Holdings,
LLC and Mandatory Exchangeable Trust (the “Trust”) in June 2016.

H Gain Relating to Settlement of Variable Prepaid Forward Contract Using Alibaba Shares
In June 2019, the Company delivered 73 million American Depositary Shares of Alibaba to the Trust for the settlement of the variable prepaid forward contract using Alibaba shares. This contract was entered into between the Company’s wholly owned subsidiary, West Raptor Holdings, LLC, and the Trust in June 2016 as part of the Company’sseries of transactions monetizing a portion of its Alibaba holding. As a result, gain relating to settlement of variable
prepaid forward contract using Alibaba shares was recorded.

I

Loss from Financial Instruments at FVTPL

Loss of ¥359,212 million was recorded due to a decrease in the fair value of investments in WeWork held by theCompany’s wholly owned subsidiary. See “Investments in WeWork” below for details.

Mainly as a result of B through I, income before income tax decreased ¥464,456 million (25.7%) year on year,to ¥1,345,378 million.

J Income Taxes
The effective tax rate of 51.2% significantly exceeded the statutory income tax rate in Japan of 31.5%. This was
mainly because deferred tax assets were not recognized for loss on investments in WeWork by the Company’s wholly
owned subsidiary. Recording of loss on valuation of investments at certain limited partnerships that form SoftBank

6

SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 2019

Vision Fund also pushed up the effective tax rate, since the tax rate applicable to those partnerships is lower than thestatutory income tax rate in Japan.

Mainly as a result of B through J, net income attributable to owners of the parent decreased ¥1,061,809 million (69.0%) year on year, to ¥476,587 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/.

Investments in WeWork
A wholly owned subsidiary of the Company other than SoftBank Vision Fund has invested in WeWork, which operates
the co-working “space-as-a-service” business WeWork, and SoftBank Vision Fund has invested in WeWork and its three
affiliates — WeWork Greater China Holding Company B.V. (“WeWork China”), WeWork Asia Holding Company
B.V. (“WeWork Asia”), and WeWork Japan GK (“WeWork Japan”). As of December 31, 2019, the cumulative amountof investments by the Company’s wholly owned subsidiary and SoftBank Vision Fund in WeWork totaled $10.3 billion,
with a carrying amount of $5.3 billion. The cumulative amount of investment does not include the investment amountof the ongoing tender offer for WeWork shares worth up to $3 billion.
The Company recognized that the fair value of WeWork’s entire equity, taking into account the effect of “(4) Exchange of WeWork China and WeWork Asia Shares for Preferred Stock of WeWork” below, decreased to $7.8 billion
as of September 30, 2019, reflecting WeWork’s withdrawal of its public offering plan and a significant revision of its
business plan, as well as an agreement between the Company and WeWork on October 22, 2019. As of December 31,
2019, the Company’s estimate of the fair value of WeWork’s entire equity was valued at $7.3 billion, a result obtainedby using the income approach (discounted cash flow method).
In accordance with a change in WeWork’s corporate governance on October 30, 2019, the Company was given theright to nominate five of the 10 directors on WeWork’s board of directors. As a result, WeWork became an associate of
the Company.
Details and progress of the agreement between the Company and WeWork dated October 22, 2019 are as follows:(1) Exercise Price Reduction of Existing Commitment and Early Payment
On October 30, 2019, the Company’s wholly owned subsidiary other than SoftBank Vision Fund has paid the fullamount of $1.5 billion for the existing commitment that was originally expected to be exercised at $110.00 per
share in April 2020, by lowering the exercise price to $11.60 per share. Of this advance payment for investment,
a $200 million portion was converted into preferred stock of WeWork in November 2019, with the remaining $1.3
billion portion scheduled to be converted in March 2020, after receiving the necessary regulatory approvals.
(2) Execution of Tender Offer
In November 2019, the Company’s wholly owned subsidiary other than SoftBank Vision Fund launched a tender
offer worth up to $3 billion to purchase WeWork’s common stock and preferred stock from shareholders of We-

7

SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 2019

Work other than the Company at a price of $19.19 per share. The offer period is until April 1, 2020, unless extended. The closing of the tender offer is subject to regulatory approvals and other customary closing conditions.
(3) Credit Support and Notes Underwriting
The Company agreed to provide to WeWork (a) credit support for a $1.75 billion letter of credit facility provided
by financial institutions, and the Company’s wholly owned subsidiary other than SoftBank Vision Fund agreed tounderwrite or arrange (b) up to $1.1 billion in senior secured notes and (c) up to $2.2 billion in unsecured notes tobe issued by WeWork.
Regarding (a), in December 2019, the Company entered into an agreement with financial institutions that designates the Company as a co-obligor with WeWork, while the two parties separately agreed that the Company has
the right of indemnification against WeWork whenever the Company services obligations. Regarding (c), theCompany’s wholly owned subsidiary entered into an agreement with WeWork in December 2019. WeWork is
expected to issue unsecured notes as needed on or after April 2020. WeWork has not issued any of the unsecured
notes as of February 12, 2020.
With the Company’s entry into the agreements regarding (a) and (c), as consideration, the Company has received warrants that are convertible into WeWork preferred stock at an exercise price of $0.01 per share. The
warrants are expected to become exercisable in April 2020, after receiving the necessary regulatory approvals.
(4) Exchange of WeWork China and WeWork Asia Shares for Preferred Stock of WeWork
Subject to satisfactory negotiations of definitive documentation and satisfaction of certain closing conditions, it isexpected that all of SoftBank Vision Fund’s interests in WeWork China and WeWork Asia are expected to beexchanged for preferred stock of WeWork at $11.60 per share. The exchange is expected to take place in earlynext fiscal year.
Upon completion of these transactions as contemplated in the agreement between the Company and WeWork dated
October 22, 2019, the Company’s fully diluted economic ownership of WeWork will be up to 80% (up to 60% by theCompany and its wholly owned subsidiary other than SoftBank Vision Fund and 20% by SoftBank Vision Fund). Since
the Company will not hold a majority of voting rights at any general shareholders meeting or board of directors meetingand cannot control WeWork due to provisions of WeWork’s articles of incorporation and shareholders agreement, WeWork will not be a subsidiary of the Company. There is no other party acting as the Company’s de facto agent.

The investment in WeWork by the Company’s wholly owned subsidiary other than SoftBank Vision Fund consists ofcommon stock, preferred stock, and a $1.5 billion paid commitment, the full amount of which was paid on October 30,
2019 with the exercise price lowered to $11.60 per share. In addition, the Company also owns warrants that are convertible into preferred stock at an exercise price of $0.01 per share that acquired as consideration for the credit support andunsecured notes underwriting commitment. The common stock is accounted for using the equity method from October30, 2019, the date on which WeWork became an associate of the Company. The preferred stock, advance payment forinvestment, and warrants that are convertible into preferred stock at $0.01 per share are measured at fair value, with thechange recorded as a gain or loss. See “Investments in WeWork by the Company’s wholly owned subsidiary other than
SoftBank Vision Fund (1) (as of December 31, 2019)” on page 10 and “Investments in WeWork by the Company’s
wholly owned subsidiary other than SoftBank Vision Fund (2) (as of December 31, 2019)” on page 12 for details.
For the six-month period ended September 30, 2019, the Company recorded a loss of $4,679 million related to investments from the Company’s wholly owned subsidiary other than SoftBank Vision Fund, which was the total of loss

8

SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 2019from financial instruments at FVTPL and derivative loss. For the nine-month period ended December 31, 2019, however,
the Company recorded a loss of $3,603 million as the total of loss from financial instruments at FVTPL, loss on equity
method investments, derivative loss, and other non-operating loss. This $1,076 million decrease in loss was mainly
attributable to measurement of the fair value of the $1.5 billion commitment on December 31, 2019 by considering thedrop of exercise price to $11.60 per share from the original $110.00 per share. See (i) in Graph 1 on page 11.
In the meantime, for the shares to be purchased in the ongoing tender offer, the Company expects to record a nonoperating loss, which represents the difference between the acquisition cost and the fair value. See (ii) in Graph 1 on
page 11.
Upon the execution of the agreements on (a) and (c) in “(3) Credit Support and Notes Underwriting” above, theCompany recorded other financial liabilities (current liabilities) in the Condensed Interim Consolidated Statement of
Financial Position, which represents the credit support and unsecured notes underwriting commitment recognized at fairvalue at the time of the execution of the agreements. The Company also recorded derivative assets (non-current assets)in the Condensed Interim Consolidated Statement of Financial Position, for the warrants convertible to preferred stockat an exercise price of $0.01 per share that were received as compensation for (a) and (c) and recognized at fair value atthe time of the execution of the agreements. The Company will amortize the liabilities of financial guarantee and loan
commitment over the term agreed for the credit support and unsecured notes underwriting commitment and record theamortized amount as non-operating income. See (iii) in Graph 1 on page 11.
With respect to SoftBank Vision Fund’s investments in WeWork and its three affiliates—WeWork China, WeWork
Asia, and WeWork Japan—both the common stock and preferred stock continue to be measured at fair value, with thechange to be recorded as a gain or loss. As of December 31, 2019, the cumulative amount of these investments totaled$4.3 billion, with fair value of $2.0 billion.

9SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 2019

Investments in WeWork by the Company’s wholly owned subsidiary other than SoftBank Vision Fund (1) (as of December 31, 2019)

Cumulative
investment
amountInvestment type

Cumulative
gain (loss)

Account in condensed interim
consolidated
statement of financial position(Millions of U.S. dollars)
Account in con- Gain (loss) recorded in condensed interim conCarrying amounts densed interim solidated statement of income in the fiscal year
in the fiscal year consolidated
statement of inQ2E
Q3E come
Q1
Q2
Q3
Q1-3

Investment
securities
166
Common stock
4,500(3,084)Preferred stockAfterconversion*3$1.5 billion paid commitment After
exercise Before(Exercised on October 30,
2019 with the exercise price of
conversion*4$11.60 per share, down fromthe original $110.00 per share) Before exercise

Investment
securities
200
1,300

Warrants with exercise priceof $0.01 per share
Total

Before exercise

Investments
accounted forusing the equity
method6,000(51)
Other financial(331) assets
Derivative financial liabili- ties
Derivative fi(155) nancial assets(3,621)

-

-

59

833

1,357

-

149

-

969

(1,196)*
5--

Loss from financial instruments at
FVTPL
Loss on equity
method investments
Other non-operating loss
Gain (loss)
from financial
instruments at
FVTPL

Breakdownomitted

Derivative
gain (loss)

713
2

(769)

-

(417)

-

(29)*1(29)*1-(78)*2(78)*2(2,901)524(2,542)

-

(51)

(51)

-

(331)

(331)

(1,011)*5

1,196*5--(155)*6(155)*6(4,681)

1,076(3,603)

Notes:
1. WeWork became the Company’s associate on October 30, 2019. As a result, net loss of WeWork from October 30, 2019 to December 31, 2019 corresponding to the Company’s holding ofcommon stock (2.75% as of December 31, 2019; before dilution) was recorded.
2. Indicates the impairment loss recorded due to the significant reduction in fair value of common stock recognized in the third quarter.
3. The $200 million portion of $1.5 billion paid commitment was converted into preferred stock in November 2019.
4. The $1.3 billion portion of $1.5 billion paid commitment has been paid in advance. This investment is scheduled to be converted into preferred stock in March 2020 after receiving necessary
regulatory approvals.
5. The Company recognized a cumulative valuation loss of $1,196 million from the previous fiscal year-end to the second quarter-end, on the warrants (an unexecuted commitment of $1.5 billion)
held by the Company’s wholly owned subsidiary and recorded it as derivative financial liabilities in the Condensed Interim Consolidated Statement of Financial Position. The Company also
recorded the corresponding derivative loss in the Condensed Interim Consolidated Statement of Income for the six-month period ended September 30, 2019. At the third quarter-end, the entire
amount of the relevant derivative financial liabilities was reversed, following the Company’s payment of $1.5 billion on October 30, 2019 after changing the terms and conditions of the warrants.
6. Derivative loss on warrants with exercise price of $0.01 per share was recognized mainly due to markdown of WeWork’s entire equity value from $7.8 billion as of September 30, 2019 to $7.3
billion as of December 31, 2019.

10

SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 2019

Graph 1: Investments in WeWork by the Company’s wholly owned subsidiary other than SoftBank Vision Fund
Outlook of the treatment of transactions agreed on October 22, 2019, for illustrative purposes only

The losses are expected to be approximately the same assuming that: (a) the fair value of WeWork’s
entire equity remains at $7.8 billion as of September 30, 2019 and (b) $3 billion worth of shares will beacquired through the tender offer.

Actual(Billions of U.S. dollars)

OutlookCommonstock and preferred stock to
be acquired
through tender
offer

Amountof loss

Amountof loss

3.0
Paidcommitment
1.5
Commonstock andpreferredstock

Amountof loss
3.6

Amountof loss

(ii)

4.7

(iii)

6.0

(i)

4.5

1.1

1.1

1.4

1.4

0.3
1.0

Cummulative investment Q2E carrying amounts Q3E carrying amounts
amount(as of Dec. 31, 2019)
Fair value of WeWork’s entire equity$7.8 billion

Tender offer

Amortization of credit support andunsecured notes underwriting
commitment(expected to be three to five years)

Carrying amounts after
tender offer

1.1

Consideration of
credit support
and commitment(warrants with
exercise price of$0.01 per share)

1.4

Carrying amounts after the termsof credit support and unsecured
notes underwriting commitment$7.3 billion

Note: This graph is based on certain presumptions for illustrative purposes only. Actual accumulated investment amount and accumulated amount of loss may vary depending on
factors including the changes in the fair value of WeWork’s entire equity and the purchase amount of the tender offer.

11SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 2019

Investments in WeWork by the Company’s wholly owned subsidiary other than SoftBank Vision Fund (2) (as of December 31, 2019)

Fiscal year ended March 2019
Q1
Investment type

Item in consolidated
statement of financial
position

Investment securities
Common stock

Investments accounted for using theequity method

Preferred stock

Investment securities

Convertible promissory notes

Other financial assets$2.5 billion warAfter exerrants (agreementcise; after
concluded inconversion
November 2018)$1.5 billion warAfter exerrants (agreementcise; before
concluded inconversion
January 2019)
Warrants with exerBefore
cise price of $0.01
exerciseper share
Total
Liabilities for credit support andunsecured notes underwriting
commitment
Investment amounts

Q4E
Valuation
carrying
gain (loss)
amounts

Acquisition cost--(a) Tender offerand (b) Exerciseof warrants-

583(Millions of U.S. dollars)
Fiscal year ending March 2020
Q2
Q3(c) Conversion (e) Exercise ofQ3Eof promissory
warrants, (f) Ex- Gain (loss)
carrying
in Q1-Q3
notes and (d)ercise and conamounts
Conversion ofversion, and (g)warrants
Reclassification
(166)
(417)
(g)

-

-

-

-

-

1,000

(18)

(a)

-

-

166

(107)

59

-

417

3,066

(f) 200(2,177)

1,506

982

-

-

(106)

-

-

(310)

-

Advance payment
for investment(e) 1,300

(331)

969

868
2,368

(155)
(3,603)

713
3,247

(868)

-

(868)

(c)

(876)

Other financial assets

(d)
1,500

-

1,500

(b) 1,000

Other financial assets
Derivative financial
assetsOther financial
liabilities

-

-

-

-

2,500

(18)

2,482

2,000

(2,190)-Concluded the contract for credit support and unsecured notes
underwriting commitment, and received its consideration

-

-

-

-

2,500

2,000

12

-

1,500

SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 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 afterYahoo Japan Corporation became a subsidiary of SoftBank Corp. There are now five reportable segments: SoftBank
Vision Fund and Other SBIA-Managed Funds, SoftBank, Sprint, Arm, and Brightstar.
The “SoftBank Vision Fund and Other SBIA-Managed Funds segment” was renamed from the “SoftBank Vision Fundand Delta Fund segment” in the third quarter due to the establishment of new investment vehicles, which will hold certain
investments that are expected to be treated as the initial investments of “SoftBank Vision Fund 2” (planned), and investments that have been made by such vehicles. The segment includes such vehicles. Delta Fund held no investments as of
the third quarter-end.
The following is a summary of the reportable segments.
Segments

Main businesses

Core companies

Reportable segments
SoftBank Vision Fund · Investment activities by SoftBank Vision Fundand Other SBIA-Managed Funds

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

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

SoftBank Corp.
Z Holdings Corporation

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

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

Fukuoka SoftBank HAWKS Corp.

· Smartphone payment business

PayPay Corporation

Other

Note: Income of reportable segments is calculated as follows.
SoftBank Vision Fund and Other SBIA-Managed Funds segment:
Segment income = gain and loss on investments at SoftBank Vision Fund and other SBIA-managed funds − operating expenses
Segments other than the SoftBank Vision Fund and Other SBIA-Managed Funds 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/.

13

SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 2019(a) SoftBank Vision Fund and Other SBIA-Managed Funds Segment
1. Segment loss of ¥797.8 billion
 Unrealized loss on valuation of investments (net) of ¥727.3 billion from investments held by SoftBank
Vision Fund at the third quarter-end: Fair values of Uber, WeWork and its three affiliates,1 and otherinvestments decreased.
 Realized gain on sales of investments of ¥14.6 billion by SoftBank Vision Fund: A realized gain wasrecorded on the sale of a portion of Guardant Health shares, while a realized loss was recorded on the sale ofshares of another portfolio company.
2. Progress of investments at SoftBank Vision Fund
 Held 88 investments as of the third quarter-end at cost totaling $74.6 billion, with fair value amounting to$79.8 billion (excluding exited investments).
 During the third quarter, two investees, Vir Biotechnology and OneConnect, became publicly listed issuers.
(Millions of yen)

Nine months ended December 31
2018
2019
Gain and loss on investments at SoftBank Vision
Fund and other SBIA-managed funds
838,779(729,007)
Operating expenses(29,987)(68,756)

ChangeChange %(1,567,786)(38,769)

129.3%

Segment income(1,606,555)-

808,792(797,763)

OVERVIEW
The segment results include the results of the investment and operational activities of SoftBank Vision Fund and Delta
Fund. These funds are managed by SBIA, a wholly owned subsidiary of the Company established in the U.K., which isauthorized and regulated by the Financial Conduct Authority.
SoftBank Vision Fund 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.”
The fund’s investment period ended on September 12, 2019, but the fund life will in principle last through November
20, 2029.
For details on the terms and conditions of distributions 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 other SBIA-managed funds business” in “(6) Notes to Condensed Interim Consolidated Financial
Statements” in “3. Condensed Interim Consolidated Financial Statements and Primary Notes.”

14

SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 2019

Outline of Funds in the Segment
As of December 31, 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.

98.6

*1

4.4 *1

General partner

SoftBank Group Corp.: 33.1 *2Third-party investors: 65.5 *1
SVF GP (Jersey) Limited(The Company’s wholly owned overseas
subsidiary)

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

Investment period

Ended on September 12, 2019 *3

Ended on September 12, 2019 *3

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.
During the second quarter, the sale of the investment in Xiaoju Kuaizhi Inc. (“DiDi”) from Delta Fund to SoftBank Vision Fundwas settled, and the proceeds from this sale were distributed to Delta Fund’s limited partners, resulting in a return of limited
partners’ contributions. Consequently, the total committed capital of $1.6 billion from third-party investors in Delta Fund has been
reversed to SoftBank Vision 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.
3. SoftBank Vision Fund’s investment period is stipulated to run either until November 20, 2022, or until the decision to end theinvestment period is made by SBIA, as the manager, after the accumulated investment account (amounts drawn down and invested
and/or reserved to make investments) exceeds 85% of the total committed capital, whichever is earlier. On September 12, 2019,
SBIA determined to end SoftBank Vision Fund’s investment period after the accumulated investment amount exceeded 85% of
the total committed capital. The remaining 15% of the total committed capital is reserved for follow-on investments in existing
portfolio companies (including investments in joint ventures with them), fixed distributions, and finance related expenses. The
investment period of Delta Fund also ended on September 12, 2019, following the ending of the investment period of SoftBank
Vision Fund.

15

SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 2019

Capital Deployment of SoftBank Vision Fund and Delta FundAs of December 31, 2019
(Billions of U.S. dollars)

Total
Committed capital (A)SoftBank Vision Fund
Delta FundContributions from limited partners3
SoftBank Vision Fund
Delta Fund

Third-party
investors

98.6
4.4

33.1 *1
4.4

65.5
*2
-

74.9
3.8

26.9
3.8 4

48.0
*2
-

(5.5)
(3.5)

(0.9)
(3.5)

(4.6)
*2
-

23.7
0.6

6.2
0.6

17.5
*2
-

(B)

Non-recallable contribution included in (B)SoftBank Vision Fund5
Delta Fund6
Remaining committed capital
SoftBank Vision Fund
Delta Fund

The Company(C) = (A) - (B)Notes:
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.
2. During the second quarter, the sale of the investment in DiDi from Delta Fund to SoftBank Vision Fund was settled, and theproceeds from this sale were distributed to Delta Fund’s limited partners, resulting in a return of limited partners’ contributions.
Consequently, the total committed capital of $1.6 billion from third-party investors in Delta Fund has been reversed to SoftBank
Vision Fund.

16

SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 2019

FINANCIAL RESULTS(Millions of yen)

Nine months ended December 31
2018
2019
Gain and loss on investments at SoftBank Vision Fundand other SBIA-managed funds
838,779(729,007)
Realized gain and loss on sales of investments
146,682
14,643
Unrealized gain and loss on valuation of investments
693,296(754,828)
Change in valuation for the fiscal year693,296(727,327)
Reclassified to realized gain and loss recorded in
the past fiscal year*1(27,501)
Interest and dividend income from investments
3,092
10,067
Effect of foreign exchange translation(4,291)
1,111
Operating expenses(29,987)(68,756)

ChangeChange %(1,567,786)(132,039)(1,448,124)(1,420,623)(90.0%)-(27,501)
6,975
5,402
(38,769)

225.6%
129.3%

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

808,792(18,919)66
249,439(797,763)(16,221)547-(1,606,555)
2,698
481
(249,439)(14.3%)
728.8%-(453,529)(910)

190,005
340

643,534
1,250-

Income before income tax

584,939(623,092)(1,208,031)

-

Note:

1. Following the sales of a portion of shares in Guardant Health Inc. (“Guardant Health”) and shares of another portfolio
company in the period, the unrealized gains and loss on valuation of investments of ¥27,501 million (net) recordedin the previous fiscal year for those exited investments were reclassified to “realized gain and loss on sale of investments,” including a gain of ¥35,788 million recorded for investment in Guardant Health and a loss of ¥8,287 million
recorded for investment in another portfolio company.
Segment income
Segment loss was ¥797,763 million, compared with income of ¥808,792 million in the same period of the previous
fiscal year. This was mainly attributable to unrealized loss on valuation of investments of ¥727,327 million ($6,811
million) from investments held by SoftBank Vision Fund at the third quarter-end. On a U.S. dollar basis, while unrealized gain on valuation of investments totaling $5,294 million was recorded due to an increase in the fair values of 29
investments, unrealized loss on valuation of investments totaling $12,105 million was recorded due to a decrease in thefair values of 31 investments including Uber and WeWork and its three affiliates.1 During the period, the fair values of
28 investments did not change.
Realized gain on sales of investments was ¥14,643 million. This represents a realized gain of ¥34,805 million recordedon the sale of a portion of Guardant Health shares and a realized loss of ¥20,162 million recorded on the sale of sharesof another portfolio company.
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 are allused 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.

17

SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 2019

Portfolio of SoftBank Vision Fund and Delta Fund
SoftBank Vision FundAs of December 31, 2019; excludes exited investments(Billions of U.S. dollars)
SectorConsumerEnterprise
FintechFrontier Tech
Health Tech
Real Estate & Construction
Transportation & Logistics

Number ofinvestments
15
8
11
10
10
11
23

Acquisition cost
10.8
2.5
4.9
10.8
2.7
9.9
33.0

88

74.6

Total

Fair value

Change

15.4
3.5
5.6
11.0
4.8
7.9
31.6
79.8

4.6
1.0
0.7
0.2
2.1
(2.0)
(1.4)
5.2

New investments in the period
In the period, SoftBank Vision Fund made investments totaling $14.9 billion, including follow-on investments.
Of these, the investments in ANI Technologies Private Limited (Ola) and WeWork China were purchased from theCompany for $950 million in total, the fair value at the time the Company made its decision to sell. These two investments were initially acquired by the Company in prior years with total acquisition cost of $696 million.
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 Purchased from the Company
In addition to direct purchase, some investments of SoftBank Vision Fund are purchased from the Company, but only
if they are in accordance with the fund’s investment eligibility criteria. There are two types of investments that could
be sold to SoftBank Vision Fund: (A) Investments that were acquired by the Company on the premise of offering theinvestment to SoftBank Vision Fund and that were in accordance with the investment eligibility criteria of the fundat the time of acquisition (“Bridge Investments”) and (B) other investments. Examples of (B) include investmentsthat were made without the premise of offering the investment to SoftBank Vision Fund at the time of acquisition,or, investments that were made with the premise of offering the investment to the fund but were not in accordancewith the investment eligibility criteria of the fund at the time of acquisition and therefore require consent from thelimited 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 and18

SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 2019

Other SBIA-Managed Funds segment. The sale transactions for the transfer between the Company and SoftBank
Vision Fund have been eliminated as inter-group transactions in the Company’s consolidated financial statements.
Delta Fund
There were no investments held by Delta Fund as of the third quarter-end.

(b) SoftBank Segment (Including Former Yahoo Japan Segment)
1. Achieved higher net sales and segment income, driven by steady expansion of telecom service customer base.
2. SoftBank Corp. made Yahoo Japan Corporation (currently Z Holdings Corporation) a subsidiary in June
2019.
3. Z Holdings Corporation concluded a definitive agreement relating to its business integration with LINE
Corporation in December 2019.
(Millions of yen)

Net sales
Segment income

Nine months ended December 31
2018
2019

ChangeChange %3,449,581

3,617,784

168,203

4.9%

754,857

804,891

50,034

6.6%

Note: The results of the SoftBank segment are presented by retroactively including the results of Yahoo Japan Corporation since April
1, 2018, following Yahoo Japan Corporation becoming a subsidiary of SoftBank Corp.

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, led by steady expansion in the customer base. This expansion was demonstrated by
the cumulative number of smartphone subscribers to the three brands—SoftBank, Y!mobile, and LINE MOBILE—increasing 1,400,000 from the previous fiscal year-end to 23.48 million, and the cumulative number of subscribers to
SoftBank Hikari, a fiber-optic service, increasing 330,000 from the previous fiscal year-end to 6.25 million. Segment
income also increased as a result of increased net sales.
Yahoo Japan Corporation (currently Z Holdings Corporation) became a subsidiary of SoftBank Corp. as of June 27,
2019. Accordingly, the results of the SoftBank segment are presented by retroactively including the results of Yahoo
Japan Corporation since April 1, 2018. Operating income of Z Holdings Corporation in this segment increased 5.1%
year on year. This was mainly due to consolidation of ZOZO, Inc. and an increase in net sales of existing e-commerce
and advertising business.

Consolidation of ZOZO, Inc. by Z Holdings Corporation
On November 13, 2019, Z Holdings Corporation acquired 152,952,900 shares of common shares (50.1% of voting
rights) of ZOZO, Inc., an operator of online apparel retail website, for ¥400,737 million with the aim of strengthening
its e-commerce business. Accordingly, on the same day ZOZO, Inc. became a subsidiary of the Company, SoftBank
Corp., and Z Holdings Corporation. The results of the SoftBank segment are presented by including the results of ZOZO,

19

SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 2019

Inc. from this date until December 31, 2019. For details on the consolidation of ZOZO, Inc. see “4. Business combinations” under “(6) Notes to Condensed Interim Consolidated Financial Statements” in “3. Condensed Interim Consolidated Financial Statements and Primary Notes.”

Business Integration of Z Holdings Corporation and LINE Corporation
In December 2019, Z Holdings Corporation and LINE Corporation, along with their respective parent companies
SoftBank Corp. and NAVER Corporation, concluded a four-way definitive agreement regarding a business integration(the “Business Integration”) with the aim of forming a world-leading AI technology company based in Japan and Asia.
As part of the transaction to realize the Business Integration, SoftBank Corp. and NAVER Corporation will jointly
conduct a tender offer for the shares of LINE Corporation from May to June 2020. Z Holdings Corporation, as the listed
integrated company resulting from the Business Integration, is expected to become a subsidiary of the Company and of
SoftBank Corp. The Business Integration is conditioned on the receipt of required competition law and foreign exchange
law approvals and other clearances and permits required by applicable laws and regulations.

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

20

SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 2019(c) Sprint Segment
1. Merger of Sprint and T-Mobile: Parties won in court in litigation seeking injunction prohibiting theclosing of the merger; parties moving to finalize the merger.*1
2. Segment income decreased, mainly due to a decrease in prepaid revenues and accelerated amortization of
the Virgin Mobile trademark.
Note:
1. See “Progress on the Merger of Sprint and T-Mobile” below for details.
(Millions of yen)

Net sales
Segment income

Nine months ended December 31
2018
2019

Change2,794,447

2,615,700(178,747)(6.4%)

255,318

137,808(117,510)(46.0%)

U.S. dollar-based results (IFRSs)
Net sales
Segment income

Change %(Millions of U.S. dollars)

25,1592,305

24,017
1,264(1,142)(1,041)(4.5%)(45.2%)FINANCIAL RESULTS
Net sales decreased mainly due to the impact of the stronger yen on the exchange rate used for translation and a decline
in revenue for prepaid services and equipment. In accordance with IFRS 15, subsidies to promote mobile phone sales
are amortized over the expected time of use as a reduction to service revenue, not as equipment revenue. Following a
year-on-year increase in the cumulative number of prepaid customers acquired under the subsidy model, the amount of
reduction to service revenue increased year on year. As a result, revenue for prepaid services decreased.
Segment income decreased mainly due to recording amortization expenses of ¥41,525 million ($381 million) to reflect accelerated amortization of the trademark related to Virgin Mobile, one of the company’s prepaid brands, following
a decision made in the third quarter to discontinue Virgin Mobile services, in addition to the decrease in prepaid revenue.
Apart from the above, the Company recorded other operating loss of ¥22,725 million following the sale and leaseback
transaction that Sprint executed for its head office, including buildings and land, which is the difference between theircarrying amounts and fair values after deducting transaction costs. The Company also recorded other operating incomeof ¥29,404 million from compensation after winning lawsuits related to patent infringement.

Progress on the Merger of Sprint and T-Mobile
On April 29, 2018, Sprint and T-Mobile US Inc. (“T-Mobile”) entered into a definitive agreement (the “Business
Combination Agreement”) to merge in an all-stock transaction (the “Transaction”). On July 26, 2019 (ET) the U.S.
Department of Justice (DOJ) announced its approval, subject to the terms of a proposed consent decree filed by the
DOJ. Thereafter, on November 5, 2019 (ET), the Federal Communications Commission (FCC) announced its approval with conditions of the Transaction. With this, the companies have obtained all of the necessary federal regulatory approvals to close the Transaction. The Transaction has also received approvals from 18 of the 19 public stateutility commissions, with only approval from the California public utility commission (the “California PUC”) still
outstanding. Litigation was filed by the attorneys general of certain states and the District of Columbia seeking an
injunction prohibiting the closing of the Transaction (the “AG Litigation”); however, on February 11, 2020 (ET), theU.S. District Court for the Southern District of New York issued a ruling in which it rejected the claims brought by

21

SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 2019the attorneys general. The Transaction remains subject to certain closing conditions, including resolution of all court
proceedings in the AG Litigation, and satisfactory resolution of outstanding business issues among the parties.
Note that the time limit after which either party can terminate for convenience the Business Combination Agreement by giving notification was November 1, 2019, which was agreed in the amendment of the Business Combination
Agreement on July 26, 2019 (ET). However, as of February 12, 2020 no such notification has been given and theBusiness Combination Agreement is still effective. The parties are expected to continue to discuss potential further
amendments to the Business Combination Agreement, but no agreement on terms of any such amendments has beenreached.

Impact on the Company’s Consolidated Financial Results
1. Classification as discontinued operations
The condition for classifying the Sprint business as discontinued operations is the determination that the closing of
the Transaction is “highly probable.” The Company is continuing to carefully monitor the situation, as the approval
from the California PUC is still pending and the Transaction remains subject to certain closing conditions, including
resolution of all court proceedings in the AG Litigation, and satisfactory resolution of outstanding business issues
among the parties.
The Sprint business will be classified as discontinued operations from the date on which it is confirmed that itmeets the conditions for such classification, and in the Company’s consolidated statement of income, Sprint’s net
income and loss will be presented as “net income or loss from discontinued operations,” separately from continuing
operations. Sprint’s net income and loss for the previous fiscal year will also be retrospectively revised and presented
as “net income or loss from discontinued operations.” In the Company’s consolidated statement of financial position,assets and liabilities of Sprint will be presented as assets and liabilities 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 under net income or loss related to change in scope of consolidation.

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.

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

22SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 2019(d) Arm Segment
1. Net sales decreased 2.1% yoy. Segment income decreased substantially yoy, due to a one-time gain in thesame period of the previous fiscal year Royalty revenue (U.S. dollar-based) decreased 5.3% yoy. Royalty revenue for the third quarter increased 22.8%
from the previous quarter due to improving industry conditions and ramping shipment of 5G smartphones.
 Segment income decreased yoy, due to a one-time gain of ¥176.3 billion from setting up a joint venture forbusiness in China in the same period of the previous fiscal year.
2. Start of season to harvest returns from increasing R&D capacity
 Strong licensing of new technologies continued, with the majority of revenues associated with these new
products expected to be recognized in future quarters.
 First generation of Arm Neoverse processors is being used in Amazon Web Services Inc.’s own-built Graviton2
server chips.
(Millions of yen)

Nine months ended December 31
2019
2018

ChangeChange %Net sales

146,119

143,008(3,111)(2.1%)

Segment income

137,205(42,659)(179,864)-

Note: Segment income included amortization expenses of ¥37,738 million for the period and ¥43,383 million for the same periodof the previous fiscal year. These expenses are related to intangible assets recognized in the purchase price allocation at thetime of the acquisition of Arm.

OVERVIEW
Arm’s operations are primarily the licensing of semiconductor intellectual property (IP), including the 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 expand into new markets.

Industry trend and its impact
Semiconductor industry trends can have a significant impact on Arm’s financial results. Revenue of parts of the semiconductor industry that are most relevant to Arm’s business started to decline in late 2018, and continued to show yearon-year declines from November 20187 until a year-on-year increase of 2.5%7 was seen in November 2019. Despite
this recent improvement, the industry remains vulnerable to ongoing trade disputes and sanctions against specific companies. For the fiscal year, these factors could continue to impact both Arm’s license and software and services revenues,
as semiconductor companies choose to delay licensing new processors, and royalty revenues, as OEMs sell fewer products or manage chip inventory levels more carefully. As market conditions normalize, Arm expects that its business willcontinue to grow again. In addition, Arm is expecting that as technology becomes more advanced, its technology will
be further utilized and opportunities will expand over the long term.

23

SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 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)Nine months ended December 31
2018
2019
Q1

Q2

Q3

Total

Q1

Q2

Q3

Total

ChangeChange %Technology licensing

85

124

125

334

125

87

130

342

8

2.4%

Technology royalties

261

285

305

851

240

254

312

806

(45)

(5.3%)

Software and services

35

47

56

138

53

55

63

171

33

23.9%

Total net sales

381

456

486

1,323

418

396

505

1,319

(4)

(0.3%)Net sales for the period were almost flat year on year on a U.S. dollar-basis. Although the slowdown in the industry
resulted in a decrease in royalty revenue, software and services revenue and licensing revenue increased.

Technology licensing
Licensing revenue increased 2.4% year on year. This was mainly due to a temporary delay in licensing activity following
the establishment of a joint venture for business in China in the same period of the previous fiscal year. In addition, thedownturn in the semiconductor industry which started from late 2018 started to show signs of recovery in the third
quarter. This led to an increase in the number of licenses signed.
Arm is currently undergoing a transition in its product cycle and continues to sign licenses for new technologies thathave not been announced. Bookings for these licenses are not recorded as revenue in the period. However, the bookings
are expected to be recognized as licensing revenue when the technology is delivered to the customer in future quarters.
Also, as most of these new technologies are more advanced than existing technologies, there is an opportunity for higher
royalty revenue per chip to boost Arm’s revenues for years to come.

Technology royalty
Technology royalty revenue decreased 5.3% year on year. This was mainly due to a deceleration in semiconductor
demand including a weakening in global smartphone demand, combined with a general slowdown in global chip sales.
Royalty revenue for the third quarter increased 22.8% from the previous quarter due to improving industry conditions
and ramping shipment of 5G smartphones.

Software and services
Software and services revenue increased 23.9% year on year, mainly due to Arm’s data management business, createdfollowing the acquisition of Treasure Data, Inc. in August 2018, growing strongly over the year.

24SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 2019

Segment income
Segment income decreased year on year. This was due to recognizing gain relating to loss of control over subsidiariesof ¥176,261 million in the same period of the previous fiscal year, as a result of Arm’s Chinese subsidiary becoming an
associate accounted for using the equity method.
Arm will continue to strengthen its R&D capacity by expanding its staff, and its head count as of the third quarterend increased net 533 people (8.9%) from the previous fiscal year-end. In the meantime, to maximize ROI, it will also
continuously evaluate the mix of R&D projects in which it is investing, as well as the locations of the engineering teams.

OPERATIONS
Licensing
Licenses signedin the third quarter

Cumulative number of licenses signed
as of the third quarter-end

Classic (Arm7, Arm9, Arm11)-

451

Cortex-A

19

392

Cortex-R

5

113

Cortex-M

18

590

Mali

9

195

Number of processor licenses signed

51

1,741

Breakdown by processor family

Note: Cumulative number of licenses signed only includes extant licenses that are expected to generate royalties.

Arm signed 51 processor licenses in the third quarter, the highest number of licenses signed since becoming part of theCompany. This included 13 licenses for new technologies that Arm has not yet announced. The customers who signed
licenses with Arm in the third quarter intend to use Arm technologies in a very broad range of end markets, including
AI processors, automotive applications, IoT, networking infrastructure, servers, and smartphones.

Royalty Units8
2018

Royalty units as reported byArm’s licensees
Growth rate (yoy)2019

Jul 1 toSep 30

Oct 1 toDec 31

Jan 1 toMar 31

Apr 1 toJun 30Jul 1 toSep 306.2 billion

5.6 billion

4.8 billion

5.6 billion

6.4 billion

8.8%(3.4%)(12.7%)-

3.2%

Arm’s licensees reported shipments of 6.4 billion Arm-based chips for the three-month period ended September 30,
2019. Arm’s unit shipments increased 3.2% year on year while the semiconductor industry on the whole declined 9.2%7during the same period.

25SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 2019

TECHNOLOGY DEVELOPMENT
Arm considers the following as its primary areas for increased investment and is evolving the technology in both its
mobile business and other businesses with strong growth potential.

Arm’s primary investment areas and main developments:
Mobile Computing
Opportunity:
The first quarter:

The second quarter:

The third quarter:

Infrastructure
Opportunity:

The first quarter:

The third quarter:

Automotive
Opportunity:

The second quarter:

IoT
Opportunity:

The first quarter:

The second quarter:

Arm already has over 95% share of the main chips in mobile devices and, over time, hasbeen successfully increasing royalties per chip.
Arm announced a family of processors which will help provide AI and 5G capabilities tothe next generation of smartphones due in 2020.
Arm announced Total Compute, a new platform approach to develop IP for mobile devices
and consumer electronics, which will deliver higher performance and greater security.
Arm announced new AI processors that are scalable to add AI capability to a wide range ofconsumer devices such as mobile computing and portable gaming devices.
Arm has a growing share in networking infrastructure and a nascent share in data center
servers.
Marvell Technology Group Ltd. and Arm announced a strategic partnership to accelerate
the development of technology needed for cloud companies to deploy Arm-based servers.
· Amazon Web Services Inc. announced that the first generation of Arm Neoverse processors is being used in their own-built Graviton2 server chips, which will be used to replace
the current generations of server systems and show up to 40% cost savings for its customers.
· Supercomputer Fugaku, jointly developed by RIKEN and Fujitsu Limited, has been
awarded 1st place in the Green500 supercomputer list, a global ranking based on the energy efficiency of supercomputers, with their Arm-based high-performance chip.
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.
Established Autonomous Vehicle Computing Consortium (AVCC) with partners from theautomotive industry to create technology standards that will help accelerate the arrival ofself-driving cars.
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.
Samsung Electronics Co., Ltd. and Arm demonstrated a new manufacturing process for IoT
chips.
Arm announced a new feature Arm Custom Instructions. This allows chipmakers to optimize an Arm CPU to increase the performance for specific IoT and other applications.

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

26

SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 2019(e) Brightstar Segment(Millions of yen)

Nine months ended December 31
2018
2019

ChangeChange %Net sales

812,471

702,734(109,737)(13.5%)

Segment income(9,222)(2,083)7,139-(f) Other(Millions of yen)

Nine months ended December 31
2018
2019

ChangeChange %Net sales

158,696

159,868

1,172

0.7%

Segment income(39,881)(66,031)(26,150)-

Operating loss of ¥55,612 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 the Other segment(Millions of yen)

Nine months ended December 31
2018
2019
Net sales
Operating income

ChangeChange %

-

4,872

4,872

-

(21,135)(55,612)(34,477)-27

SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 2019(2) Overview of Financial Position
1. Status of investments
 Carrying amount of investments from SoftBank Vision Fund of ¥7.8 trillion, increased ¥728.6 billion
from the previous fiscal year-end*1
SoftBank Vision Fund made new investments totaling $14.9 billion, while the fair value of Uber, WeWork
and its three affiliates,1 and other investments decreased.
 Carrying amount of investments in WeWork and its affiliates totaling ¥575.2 billion, decreased ¥290.1
billion from the previous fiscal year-end- Carrying amount of investments from a wholly owned subsidiary of the Company of ¥355.8 billion,
increased ¥80.3 billion from the previous fiscal year-end*2- Carrying amount of investments from SoftBank Vision Fund of ¥219.4 billion, down ¥370.5 billion from theprevious fiscal year-end.
2. The Company’s financing activities
Enhanced cash on hand by procuring funds in advance to prepare for redemption of corporate bonds.
Notes:
1. Investment in Arm is not included in investments from SoftBank Vision Fund as Arm is a subsidiary of the Company.
2. For details about investments in WeWork, see “Investments in WeWork” under “a. Consolidated Results of Operations” in “(1)Overview of Results of Operations.”(Millions of yen)March 31, 2019

December 31, 2019

ChangeChange %Total assets

36,096,476

39,406,437

3,309,961

9.2%

Total liabilities

27,087,272

30,215,018

3,127,746

11.5%

Total equity

9,009,204

9,191,419

182,2152.0%

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

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

December 31, 2019

ChangeCash and cash equivalents

3,858,518

3,804,711(53,807)

Trade and other receivables

2,339,977

2,646,387

306,410

Other financial assets

203,476

150,487(52,989)

Inventories

365,260

327,909(37,351)

Other current assets

766,556

571,939(194,617)

A

Assets classified as held for sale

224,201-(224,201)

B

Total current assets

7,757,988

7,501,433(256,555)

Property, plant and equipment

4,070,704

3,116,423(954,281)

C-

2,182,273

2,182,273

D

Goodwill

4,321,467

4,518,667

197,200

E

Intangible assets

6,892,195

7,194,628

302,433F

384,076

410,383

26,3072,641,045

3,225,219

584,174

Right-of-use assets

Costs to obtain contracts
Investments accounted for using the equity method

28

GSoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 2019

March 31, 2019

December 31, 2019

Change7,115,629

8,033,558

917,929

7,115,629

7,844,201

728,572

Investment securities

924,6141,501,822

577,208

Other financial assets

1,185,856

1,333,464

147,608

Deferred tax assets

586,943

182,275(404,668)

Other non-current assets

215,959

206,292

Total non-current assets

28,338,488

31,905,004(9,667)3,566,516

Total assets

36,096,476

39,406,437

3,309,961

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

H

I
J

Reasons for changes by primary component
Components
Current assets
A Other current assets

B Assets classified as held for saleNon-current assets
C Property, plant and equipment

Main reasons for changes from the previous fiscal year-end
Other current assets were reduced by ¥422,648 million due to a refund of withholding income tax in July 2019 on dividends from SoftBank Group Japan
Corporation (“SBGJ”) to SoftBank Group Corp. in the previous fiscal year.
Assets classified as held for sale were reduced due to the settlement in June2019 of the variable prepaid forward contract using Alibaba shares concluded
in 2016.
· Sprint made capital expenditures for the 5G network, while 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.

D 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.

E Goodwill· Following the consolidation of ZOZO Inc., goodwill was newly recognizedon the date when control was acquired. For details, see “4. Business combinations” under “(6) Notes to Condensed Interim Consolidated Financial Statements” in “3. Condensed Interim Consolidated Financial Statements and Primary Notes.”· Arm’s goodwill decreased ¥28,736 million, due to a stronger yen against the
British pound.

29SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 2019

Components

Main reasons for changes from the previous fiscal year-end

F Intangible assets· Following the consolidation of ZOZO Inc., intangible assets such as customer
relationships and trademarks were newly recognized on the date when control
was acquired. For details, see “4. Business combinations” under “(6) Notes toCondensed Interim Consolidated Financial Statements” in “3. Condensed Interim Consolidated Financial Statements and Primary Notes.”· Sprint’s FCC licenses decreased ¥53,517 million mainly due to a stronger yen
against the U.S. dollar, while Sprint’s customer relationships and Arm’s technologies decreased due to regular amortization. In addition, Sprint conducted
accelerated amortization of trademark related to Virgin Mobile of ¥41,525
million in the third quarter.

G Investments accounted for using
the equity method

The consolidated carrying amount of Alibaba increased due to recording income on equity method investments and dilution gain from changes in equity
interest.

H Investments from SoftBank
Vision Fund and other SBIAmanaged funds accounted forusing FVTPLSoftBank Vision Fund made investments of $14.9 billion, while the fair valuesof investments including Uber and WeWork and its three affiliates1 decreased
and a portion of Guardant Health shares and shares of another portfolio company were sold. For details, see “(a) SoftBank Vision Fund and Other SBIAManaged Funds Segment” under “b. Results by Segment” in “(1) Overview ofResults of Operations.”

I Investment securities· For details of investments in WeWork, see “Investments in WeWork” under“a. Consolidated Results of Operations” in “(1) Overview of Results of Operations.”· A wholly owned subsidiary of the Company investing in Latin America madenew investments totaling $1.3 billion.

J Deferred tax assets

As a result of the settlement of the variable prepaid forward contract using
Alibaba shares concluded in 2016, the corresponding deferred tax assets werereversed.

30

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

December 31, 2019

Change3,480,960

3,483,105

2,145

-

602,541

602,541

Deposits for banking business

745,943

863,668

117,725

Third-party interests in SoftBank Vision Fund andother SBIA-managed funds*2

29,677-(29,677)

1,909,608

2,012,912

103,304

Derivative financial liabilities

767,7144,048(763,666)

Other financial liabilities

10,849101,050

90,201

Income taxes payables

534,906

97,985(436,921)

Provisions

43,68523,503(20,182)

Other current liabilities

1,158,355

898,290

Total current liabilities

8,681,697

8,087,102(260,065)

Interest-bearing debt*1

12,204,146

13,750,448

1,546,302-

1,413,914

1,413,914

4,107,288

4,789,338

682,050

Derivative financial liabilities

130,545

120,029(10,516)

Other financial liabilities

57,11584,551

27,436

Defined benefit liabilities

99,351

104,091

4,740

Provisions

157,478

161,925

4,447

1,391,072

1,533,045

141,973

Other non-current liabilities

258,580

170,575(88,005)

Total non-current liabilities

18,405,575

22,127,916

3,722,341

Total liabilities

27,087,272

30,215,018

3,127,746

Interest-bearing debt*1*1

Lease liabilities

Trade and other payables*1

Lease liabilities

Third-party interests in SoftBank Vision Fund andother SBIA-managed funds*2

Deferred tax liabilities

A
B
C(594,595)

D

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. See “(2) Third-party interests in SoftBank Vision Fund and Delta Fund” under “3. SoftBank Vision Fund and other SBIA-managed
funds” in “(6) Notes to Condensed Interim Consolidated Financial Statements” in “3. Condensed Interim Consolidated Financial
Statements and Primary Notes” for details.

31SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 2019

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

Main reasons for changes from the previous fiscal year-end
Derivative financial liabilities related to the embedded collar transaction in
the variable prepaid forward contract using Alibaba shares concluded in2016 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 from SBGJ to
SoftBank Group Corp. in the previous fiscal year was paid.

Non-current liabilities
D Deferred tax liabilities

Deferred tax liabilities of ¥149,592 million were recorded for intangible assets that were newly recognized following the consolidation of ZOZO, Inc.
on the date when control was acquired.

32

SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 2019

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

December 31, 2019

Change

SoftBank Group Corp. and wholly owned
subsidiaries conducting fund procurement*1

7,445,551

7,933,717

488,166

SoftBank Group Corp.

6,157,798

6,706,110

548,312

Borrowings

13,39,409

1,469,402

129,993

Corporate bonds

4,776,389

5,052,708

276,319

42,000184,000

142,000

1,287,753

1,227,607(60,146)

557,152

1,031,002

473,850

ward contract
SoftBank Vision Fund and Other SBIA-Managed
Funds segment

730,601

196,605(533,996)

SoftBank Vision Fund

36,571

721,295

684,724

Borrowings

OthersWholly owned subsidiaries conducting fundprocurement*1
Borrowings
Financial liabilities relating to variable prepaid for-36,571

721,295

684,724

SBIA

-

366

366

Lease liabilities

-

366

366

SoftBank Corp.

3,186,618

4,109,981

923,363

Borrowings

2,392,843

3,089,440

696,597

786,174-(786,174)-

912,646

912,6467,601

107,895

100,294130,099

820,009689,910-437,325

437,325

Corporate bonds

130,000

359,291

229,291

Lease obligations

99

-

(99)

SoftBank segment

Lease obligations
Lease liabilities
Others*2

Z Holdings Corporation
Borrowings

Lease liabilities-

23,39323,393

Other subsidiaries

184,737

421,106

236,369

Sprint4,428,378

4,901,513

473,135

Borrowings

1,730,203

1,667,700(62,503)

Corporate bonds

2,674,649

2,416,601(258,048)

Lease obligations

14,991-(14,991)-

810,038

810,038

8,535

7,174

(1,361)

273,152

250,841(22,311)-

91,18091,18015,685,106

19,250,008

3,564,902

Sprint segment

Lease liabilities
OthersOthersOther interest-bearing debt
Lease liabilities
Total

Notes:
1. Indicates the interest-bearing debt of Skywalk Finance GK, which made borrowings using Alibaba shares, and West Raptor Holdings, LLC, which concluded a variable prepaid forward contract using Alibaba shares. This interest-bearing debt is non-recourse
to SoftBank Group Corp.
2. Includes the interest-bearing debt and lease liabilities of Yahoo Japan Corporation.

33

SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 2019

Reasons for Changes from Previous Fiscal Year-End by Core Company
SoftBank Group Corp. and wholly owned subsidiaries conducting fund procurement
SoftBank Group Corp.
・SoftBank Group Corp. issued domestic straight corporate bonds totaling ¥1 trillion and redeemed corporate bonds of¥700 billion as part of refinancing corporate bonds maturing in 2019 and 2020 onward.
・SoftBank Group Corp. issued commercial paper in the amount of ¥142.0 billion (net). Interest-bearing debt from thistransaction is included in “Others.”(Wholly owned subsidiaries conducting fund procurement)
Skywalk Finance GK
Skywalk Finance GK conducted additional borrowings of $4.37 billion (¥468,859 million) using Alibaba shares.
West Raptor Holdings, LLC
Financial liabilities related to a variable prepaid forward contract decreased by ¥730,601 million due to the settlementof the variable prepaid forward contract using Alibaba shares concluded in 2016. Financial liabilities relating to a variable prepaid forward contract of ¥196,605 million were newly recorded following the conclusion of a new variable
prepaid forward contract using Alibaba shares in November 2019.

SoftBank Vision Fund and Other SBIA-Managed Funds segment
SoftBank Vision Fund borrowed for the purpose of monetizing a portion of its investments (the “Portfolio Financing
Facility”). The fund also borrowed from a line of credit that was set up mainly to increase the capital efficiency of its
investments (the “Fund Level Facility”). In December 2019, a majority portion of the Portfolio Financing Facility wasrefinanced as long-term borrowings.

SoftBank segment
SoftBank Corp.
・SoftBank Corp. made borrowings to acquire Yahoo Japan Corporation (currently Z Holdings Corporation) shares andto replenish the reduced working capital due to 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, that were previously included in interest-bearing debt, were reclassified as leaseliabilities.
・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 ¥232,615 million related to those transactions (¥277,157 million at the previous fiscal year-end) were included at the third quarter-end.

34

SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 2019

Z Holdings Corporation
・¥400 billion was borrowed as funds for acquiring ZOZO, Inc. shares.
・Domestic straight corporate bonds totaling ¥230 billion were issued.
Sprint segment
・Sprint redeemed corporate bonds totaling $2 billion and repaid borrowings made through the securitization of receivables.
・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, that were previously included in interest-bearing debt, were reclassified as leaseliabilities.

35

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

December 31, 2019

ChangeCommon stock

238,772

238,772-

Capital surplus

1,467,762

1,484,089

16,327496,876

496,876-

Retained earnings

5,571,285

5,410,776(160,509)

B

Treasury stock(443,482)(92,372)

351,110C

Accumulated other comprehensive income

290,268

165,777(124,491)

D

Total equity attributable to owners of the parent

7,621,481

7,703,918

82,437

Non-controlling interests

1,387,723

1,487,501

99,778

Total equity

9,009,204

9,191,419

182,215

Other equity instruments

A

Reasons for changes by primary component
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 (currently Z Holdings Corporation).

B Retained earnings

While net income attributable to owners of the parent of ¥476,587 million wasrecorded, retained earnings were reduced by ¥558,136 million*1 with the retirement of 55,753,200 shares of treasury stock in June 2019 (5.07% of the total
number of issued shares before the retirement), and by ¥68,752 million due todividend payment. In addition, the cumulative impact of adopting IFRS 16 of¥13,997 million was recorded as an increase in retained earnings on April 1,
2019.

C Treasury stock· The Company repurchased 36.71 million of its own shares for ¥384.1 billion in
the previous fiscal year and 19.04 million shares for ¥215.9 billion in 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 a maximum total
repurchase amount of ¥600 billion.
· The Company retired treasury stock in June 2019.

D Accumulated othercomprehensive income

Exchange differences from the translation of foreign operations, which arise
from translating overseas subsidiaries and associates into yen, decreased¥165,629 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 amount, 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.

36SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 2019(3) Overview of Cash Flows
1. Investing activities of SoftBank Vision Fund and Delta Fund Inflows: proceeds from sale of investments of ¥48.8 billion (cash flows from investing activities), proceedsfrom borrowings of ¥1,132.9 billion (cash flows from financing activities), contributions from third-party
investors of ¥1,583.0 billion (cash flows from financing activities)
 Outflows: payments for acquisition of investments of ¥1,517.6 billion (cash flows from investing activities),
repayment of borrowings of ¥459.7 billion (cash flows from financing activities), distribution/repayment tothird-party investors of ¥688.7 billion (cash flows from financing activities).
2. Investing and financing activities of the Company
 Paid $1.5 billion on October 30, 2019, related to existing commitment agreed in the same month with WeWork.
 Enhanced cash on hand by procuring funds in advance to prepare for redemption of corporate bonds.
(Millions of yen)

Nine months ended December 31
2018
2019

ChangeCash flows from operating activities

911,188623,709(287,479)

Cash flows from investing activities(2,107,857)(3,759,057)(1,651,200)

Cash flows from financing activities

3,113,767

3,064,630(49,137)

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
Cash flows from operating activities decreased mainly due to payment of income tax of ¥321,290 million by SBGJ on
a gain on the sale of SoftBank Corp. shares recorded in the previous fiscal year.
(b) Cash Flows from Investing Activities
Primary components
Components
Outlays for purchase of property, plant andequipment and intangible assets¥(937,399) million

Primary details
Sprint acquired leased devices and telecommunications equipment
for 5G, and SoftBank Corp. acquired telecommunications equipment
including those for 5G.

Payments for acquisition of investments¥(985,064) million· A wholly owned subsidiary of the Company acquired preferredstock and common stock of WeWork totaling $2.0 billion in thefirst quarter, and paid $1.5 billion related to existing commitment of
WeWork in October 2019.
· A wholly owned subsidiary of the Company investing in Latin
America made new investments totaling $1.3 billion.

Payments for acquisitions of investment by
SoftBank Vision Fund and other SBIAmanaged funds¥(1,705,911) million

SoftBank Vision Fund made new investments. The newly established investment vehicles, which will hold certain investments thatare expected to be treated as the initial investments of “SoftBank Vision Fund 2” (planned), made investments of $1.7 billion.

Proceeds from sale of investments by SoftBank Vision Fund and other SBIA-managed funds¥48,809 million

SoftBank Vision Fund sold a portion of Guardant Health shares andshares of another portfolio company.

Payments for acquisition of control oversubsidiaries¥(385,626) million

Z Holdings Corporation acquired 152,952,900 shares of commonshares (50.1% of voting rights) of ZOZO, Inc. for ¥400,737 million.
The amount of payments for acquisition of control over subsidiaries
was obtained by deducting cash and cash equivalents of ¥22,876 million held by ZOZO, Inc. on the date when control was acquired fromthe acquisition cost.

37

SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 2019(c) Cash Flows from Financing Activities
Primary components
Components
Proceeds in short-term interestbearing debt, net¥419,214 million

Primary details· SoftBank Corp. borrowed ¥140.0 billion (net) through the securitization ofreceivables related to telecommunications to replenish the reduced working
capital due to the acquisition of shares in Yahoo Japan Corporation (currently Z Holdings Corporation).
· SoftBank Group Corp. issued commercial paper in amount of ¥127.0 billion(net).

Proceeds from interest-bearing debt
¥7,398,547 million
Proceeds from borrowings¥5,989,402 million*1· SoftBank Group Corp. made short-term borrowings of ¥1,855.0 billion.
· Skywalk Finance GK, the Company’s wholly owned subsidiary, borrowed$4.37 billion using Alibaba shares.
· SoftBank Vision Fund borrowed $6.81 billion through the Fund Level Facility, which is a form of loan that allows borrowing within a maximum amountof $3.08 billion. In the period, SoftBank Vision Fund made several borrowings and repayments under the facility (see “Repayment of borrowings” below).
· SoftBank Vision Fund borrowed $3.65 billion through the Portfolio Financing Facility. In December 2019, a majority portion of the Portfolio Financing
Facility was refinanced as long-term borrowings.
· SoftBank Corp. borrowed ¥150.5 billion to finance the acquisition of Yahoo
Japan Corporation (currently Z Holdings Corporation) shares, and additionally borrowed ¥325.0 billion for the purpose of refinancing the above borrowings into long-term borrowings and other reasons. The company also borrowed ¥678,116 million through the sale of installment sales receivables andthe sale and leaseback of telecommunications equipment.
· Z Holdings Corporation borrowed ¥400 billion to fund its acquisition of
ZOZO, Inc. shares.
· Sprint borrowed $4.7 billion in total through the securitization of receivables
and term loans.

Proceeds from issuance ofbonds¥1,230,000 million· SoftBank Group Corp. issued domestic straight corporate bonds totaling¥1 trillion for the purpose of refinancing.
· Z Holdings Corporation issued domestic straight corporate bonds totaling¥230 billion.

Proceeds from procurement
relating to settlement ofshares by variable prepaid
forward contract¥179,145 million
Repayment of interest-bearing debt¥(4,613,146) millionWest Raptor Holdings, LLC, the Company’s wholly owned subsidiary, concluded a variable prepaid forward contract using Alibaba shares in November
2019 and received ¥179,145 million.

Repayment of borrowings¥(3,682,050) million*1· SoftBank Group Corp. repaid short-term borrowings of ¥1,688.0 billion.
· SoftBank Vision Fund repaid $4.24 billion, mainly for borrowings madethrough the Fund Level Facility.
· Sprint and SoftBank Corp. repaid borrowings.

Redemption of corporatebonds¥(922,545) million· SoftBank Group Corp. redeemed domestic straight corporate bonds of ¥700
billion at maturity.
· Sprint redeemed corporate bonds totaling $2 billion.

Repayment of lease liabilities¥(525,009) million

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

38

SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 2019

Components
Contributions to SoftBank Vision
Fund and other SBIA-managed
funds from third-party investors¥1,583,011 million

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

Distribution/repayment from SoftBank Vision Fund and other
SBIA-managed funds¥(688,696) million· SoftBank Vision Fund made distributions and repaid the principal for investments to third-party investors totaling ¥528,789 million, mainly by using theproceeds from the Portfolio Financing Facility.
· Delta Fund made distributions and repaid the principal for investments tothird-party investors totaling ¥159,907 million, mainly by using the proceedsfrom the sale of DiDi shares to SoftBank Vision Fund.

Purchase of treasury stock¥(215,946) million

SoftBank Group Corp. repurchased its own shares.

Note:
1. Proceeds from borrowings and repayment of borrowings include proceeds of ¥3,771,110 million and outlays of ¥2,419,024 million,
respectively, related to borrowings with a contracted term of one year or less.

(Reference) Details of Primary Cash Flows from Investing Activities and Financing Activities of Core Companies
SoftBank Group Corp. and Wholly Owned Subsidiaries Conducting Fund Procurement
SoftBank Group Corp.
Cash flows from financing activities
Proceeds in short-term interestbearing debt, net¥127,000 million

Procured funds through commercial paper.

Proceeds from borrowings¥1,870,700 million
Repayment of borrowings¥(1,727,919) million

Made borrowings.

Proceeds from issuance of bonds¥1,000,000 million

Issued domestic straight corporate bonds for the purpose of refinancing.

Redemption of bonds¥(700,000) million

Redeemed domestic straight corporate bonds at maturity.

Purchase of treasury stock¥(215,946) million

Repurchased its own shares.

Repaid borrowings.

Skywalk Finance GK and West Raptor Holdings, LLC
Cash flows from financing activities
Proceeds from borrowings¥468,859 million
Proceeds from procurement relating
to settlement of shares by variable
prepaid forward contract¥179,145 million

Skywalk Finance GK, the Company’s wholly owned subsidiary, borrowed$4.37 billion using Alibaba shares.
In November 2019, West Raptor Holdings, LLC, the Company’s wholly
owned subsidiary, concluded a variable prepaid forward contract for
Alibaba shares and received ¥179,145 million.

39

SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 2019

SoftBank Vision Fund and Delta Fund
Cash flows from investing activities
Payments for acquisition of investments¥(1,517,556) million
Proceeds from sales of investments¥48,809 million
Cash flows from financing activities
Proceeds from borrowings¥1,132,873 million

SoftBank Vision Fund made new investments.

SoftBank Vision Fund sold a portion of Guardant Health shares and sharesof another portfolio company.

· SoftBank Vision Fund borrowed $6.81 billion through the Fund Level
Facility, which is a form of loan that allows borrowing within a maximum amount of $3.08 billion. In the period, SoftBank Vision Fund madeseveral borrowings and repayments under the facility (see “Repayment ofborrowings” below).
· SoftBank Vision Fund borrowed $3.65 billion through the Portfolio Financing Facility. In December 2019, a majority portion of the Portfolio
Financing Facility was refinanced as long-term borrowings.

Repayment of borrowings¥(459,691) million

SoftBank Vision Fund repaid borrowings of $4.24 billion, mainly for borrowings made through the Fund Level Facility.

Contributions from third-party
investors¥1,583,011 million

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

Distribution/repayment to third-party
investors¥(688,696) million· SoftBank Vision Fund made distributions and repaid the principal for investments to third-party investors totaling ¥528,789 million, mainly byusing the proceeds from the Portfolio Financing Facility.
· Delta Fund made distributions and repaid the principal for investments tothird-party investors totaling ¥159,907 million, mainly by using the proceeds from the sale of DiDi shares to SoftBank Vision Fund.

(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 Company’s financial results, unless otherwise stated.
2 The presentation of finance cost of SoftBank Group Corp. includes the interest expenses on interest-bearing debts of wholly owned
subsidiaries conducting fund procurement, Skywalk Finance GK and West Raptor Holdings, LLC. The interest-bearing debts are notguaranteed by SoftBank Group Corp., hence non-recourse to the company.
3 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.
4 The Company’s obligation to Delta Fund is offset against the cost of the investment securities in DiDi acquired by the Company andthen sold to Delta Fund.
5 Non-recallable contribution of SoftBank Vision Fund represents the applicable investment principal that was returned to limited partners by using the proceeds from the sale of Flipkart Private Limited shares and the Portfolio Financing Facility.
6 Non-recallable contribution of Delta Fund represents the applicable principal for the investment in DiDi, which was returned to limited
partners after the sale of its shares to SoftBank Vision Fund.
7 World Semiconductor Trade Statistics (WSTS) as of January 2020. Excludes memory and analog chips, which do not contain processor
technology. This data is compiled on the basis of confidential data submitted by semiconductor companies participating in the survey.
8This analysis is based on the actual shipments of royalty units (chips incorporating Arm technology) by Arm licensees for the threemonth period ended September 30, 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.

40SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 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(Impairment of assets)
For the three-month period ended June 30, 2019, Sprint entered into a sale and leaseback contract for their corporate
headquarters (buildings, land, and other) and accordingly, the related 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 sale closed
and the leaseback contract commenced on July 9, 2019. The details are described in “Note 14. Other operating loss” in“(6) Notes to Condensed Interim Consolidated Financial Statements” under “3. Condensed Interim Consolidated
Financial Statements and Primary Notes.”(Revision to useful life of intangible assets)
For the three-month period ended December 31, 2019, Sprint decided to discontinue its Virgin Mobile services, one of
the brands in the prepaid business, and notified Virgin Enterprises Limited that the agreement associated with theusage of trademarks would not be renewed. As a result, Sprint revised the useful life of these trademarks. The details
are described in “Note 8. Intangible assets” in “(6) Notes to Condensed Interim Consolidated Financial Statements”
under “3. Condensed Interim Consolidated Financial Statements and Primary Notes.”(Changes in estimate for use of loss carryforwards)
For the three-month period ended December 31, 2019, Sprint transitioned into a net deferred tax liability position on
their definite-lived temporary differences. The taxable temporary differences serve as a source of future taxable income,against which definite-lived loss carryforwards may be realized. As a result, Sprint recorded deferred tax assets of¥31,267 million, for certain loss carryforward where deferred tax assets could not be previously realized, to the extent
of the net taxable temporary differences generated and scheduled to reserve in the loss carryforward periods.
(Allowance for doubtful accounts for financial assets other than trade receivables)
For the three-month period ended December 31,2019, expected credit losses for financial assets other than tradereceivables were estimated considering the counterparty’s current conditions, forecasts of future economic conditions,and others. As a result, ¥24,979 million of provisions for doubtful accounts was recorded in “Other non-operatingloss.”

41

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

WeWork

The We Company

42

SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 2019

From the three-month period ended December 31, 2019, the description of “SoftBank Vision Fund and Delta Fund” presented
in the names of accounts and reportable segment has been changed to “SoftBank Vision Fund and other SBIA-managed funds”
as follows;

Condensed Interim Consolidated Statement of Financial Position
Previous

Current

Investments from SoftBank Vision Fund and Delta
Fund accounted for using FVTPL
Third-party interests in SoftBank Vision Fund andDelta Fund

Investments from SoftBank Vision Fund and other
SBIA-managed funds accounted for using FVTPL
Third-party interests in SoftBank Vision Fund andother SBIA-managed funds

Condensed Interim Consolidated Statement of Income
Previous

Current

Operating income (excluding income from SoftBank
Vision Fund and Delta Fund)
Operating income from SoftBank Vision Fund andDelta Fund
Change in third-party interests in SoftBank Vision
Fund and Delta Fund

Operating income (excluding income from SoftBank
Vision Fund and other SBIA-managed funds)
Operating income from SoftBank Vision Fund andother SBIA-managed funds
Change in third-party interests in SoftBank Vision
Fund and other SBIA-managed funds

Condensed Interim Consolidated Statement of Cash Flows
Previous

Current(Gain) loss on investments at SoftBank Vision Fundand Delta Fund
Change in third-party interests in SoftBank Vision
Fund and Delta FundPayments for acquisition of investments by
SoftBank Vision Fund and Delta Fund
Proceeds from sales of investments by SoftBank
Vision Fund and Delta FundContributions into SoftBank Vision Fund and Delta
Fund from third-party investors(Gain) loss on investments at SoftBank Vision Fundand other SBIA-managed funds
Change in third-party interests in SoftBank Vision
Fund and other SBIA-managed funds
Payments for acquisition of investments by SoftBank
Vision Fund and other SBIA-managed funds
Proceeds from sales of investments by SoftBank
Vision Fund and other SBIA-managed funds
Contributions into SoftBank Vision Fund and other
SBIA-managed funds from third-party investors
Distribution/repayment from SoftBank Vision FundDistribution/repayment from SoftBank Vision Fundand other SBIA-managed funds to third-party
and Delta Fund to third-party investors
investors
Segment information
Previous

SoftBank Vision Fund and Delta Fund segment

Current

SoftBank Vision Fund and Other SBIA-Managed
Funds segment

43SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 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 other
SBIA-managed funds accounted for using FVTPL
Investment securities
Other financial assets
Deferred tax assets
Other non-current assets
Total non-current assets
Total assets

44

As of
December 31, 2019

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

3,804,711
2,646,387
150,487
327,909571,9397,501,433
7,501,433

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

3,116,423
2,182,273
4,518,667
7,194,628
410,383
3,225,219

7,115,629

8,033,558

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

1,501,822
1,333,464
182,275
206,292
31,905,004
39,406,437

SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 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 Fund and other
SBIA-managed funds
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 Fund and other
SBIA-managed funds
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

45

As of
December 31, 2019

3,480,960
745,9433,483,105
602,541
863,668

29,677-

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

2,012,912
4,048
101,050
97,98523,503
898,2908,087,102

12,204,146-

13,750,448
1,413,914

4,107,288

4,789,338

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

120,029
84,551
104,091
161,925
1,533,045
170,575
22,127,916
30,215,018

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
1,484,089
496,876
5,410,776(92,372)
165,777
7,703,918
1,487,501
9,191,419
39,406,437

SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 2019(2) Condensed Interim Consolidated Statement of Income and Condensed Interim Consolidated Statement ofComprehensive Income
For the nine-month period ended December 31
Condensed Interim Consolidated Statement of Income(Millions of yen)

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 other SBIA-managed funds)
Operating income from SoftBank Vision Fund and other
SBIA-managed funds
Operating income
Finance cost
Income on equity method investments
Dilution gain from changes in equity interest
Foreign exchange gain (loss)
Derivative gain (loss)
Gain relating to settlement of variable prepaid forward
contract using Alibaba shares
Gain (loss) from financial instruments at FVTPL
Change in third-party interests in SoftBank Vision Fundand other SBIA-managed funds
Other non-operating 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)

Nine-month period ended
December 31, 2018

Nine-month period ended
December 31, 20197,168,452(4,232,353)
2,936,099

7,089,804(4,129,509)
2,960,295(1,991,415)(2,133,184)

176,261(70,730)

11,879(54,191)

1,050,215

784,799

808,792(797,763)

1,859,007(479,396)
257,533
33,064
16,908544,574(12,964)(456,616)
467,408332,230(10,320)(19,392)-

1,218,527

48,964(357,353)(453,529)

190,005(17,291)
1,809,834(235,377)
1,574,457(6,147)
1,345,378(688,918)
656,460

1,538,396
36,061
1,574,457

476,587
179,873
656,460

694.86690.38218.55212.47

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 fiscal year ended March 31,
2019.

46

SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 2019

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

Nine-month period ended
December 31, 2018

Nine-month period ended
December 31, 2019

1,574,457

656,460

367(8,741)(12,195)(725)(8,374)(12,920)435(33,382)(486)
43,588(134,619)(189,209)

10,25913,148(157,307)(132,959)(165,681)
1,408,776(145,879)
510,581

1,356,843
51,933
1,408,776

344,500
166,081510,581Net income
Other comprehensive income, net of tax
Items that will not be reclassified to profit or loss
Remeasurements of defined benefit plan
Equity financial assets at FVTOCI
Total items that will not be reclassified to profit
or loss
Items that may be reclassified subsequently to
profit or loss
Debt financial assets at FVTOCI
Cash flow hedges
Exchange differences on translating foreign
operations
Share of other comprehensive income ofassociates
Total items that may be reclassified subsequently to
profit or loss
Total other comprehensive income, net of tax
Total comprehensive income
Total comprehensive income attributable to
Owners of the parent
Non-controlling interests

47

SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 2019

For the three-month period ended December 31
Condensed Interim Consolidated Statement of Income(Millions of yen)Three-month period ended Three-month period ended
December 31, 2018
December 31, 2019
Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Other operating income (loss)
Operating income (excluding income from SoftBank
Vision Fund and other SBIA-managed funds)
Operating income from SoftBank Vision Fund and other
SBIA-managed funds
Operating income
Finance cost
Income on equity method investments
Dilution gain from changes in equity interest
Foreign exchange loss
Derivative gain
Loss from financial instruments at FVTPL
Change in third-party interests in SoftBank Vision Fundand other SBIA-managed funds
Other non-operating 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)

2,514,599(1,509,814)
1,004,785

2,438,080(1,432,008)
1,006,072(703,218)(794,426)(39,634)

16,066

261,933

227,712

176,358(225,124)

438,291(157,054)
147,195
2,850(13,034)
502,167(154,902)

2,588(153,078)
17,562
303,619(4,597)
91,914(5,572)(253,772)

9,230(103,996)
407,745
296,042
703,787(33,185)
228,481(104,206)
124,275

698,293
5,494
703,787

55,03569,240124,275

316.71
314.66

22.75
21.35

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 fiscal year ended March 31,
2019.

48

SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 2019

Condensed Interim Consolidated Statement of Comprehensive Income(Millions of yen)Three-month period ended
December 31, 2018

Three-month period ended
December 31, 2019703,787

124,275

367(7,704)

9,651
(200)

(7,337)

9,451

1,124
(8,944)(1,108)
6,952(346,515)

406,611

7,577

12,118(346,758)

424,573(354,095)
349,692

434,024558,299357,666(7,974)
349,692

481,796
76,503558,299

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

49

SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 2019(3) Condensed Interim Consolidated Statement of Changes in Equity
For the nine-month period ended December 31, 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
Distribution to owners of other
equity instruments
Transfer of accumulated othercomprehensive income toretained earnings
Purchase and disposal of treasury
stock
Changes from businesscombination
Changes in interestsin subsidiaries
Changes in associates’interests in their subsidiaries
Changes in interests in associates’
capital surplus
Share-based payment transactions
Other
Total transactions with owners
and other transactions
As of December 31, 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---

1,538,396--

1,538,396

-

-

-

-

-

(181,553)(181,553)---

1,538,396-(181,553)

1,356,843---(47,951)--(47,951)---(16,087)--(16,087)

-

-

-

(434)

-

434

-

-

1,114

-

-

4,391

-

5,505

-

-

-

-

-

-

-

-

1,165,362

-

-

-

-

1,165,362-

14,105----

14,105

-

2,338

-

-

-

-

2,338

-

4,682
684

-

-

-

-

4,682
684

-

1,188,285-(64,472)

4,391

434

1,128,638

238,772

1,445,053

496,876

5,714,798(62,067)

79,012

7,912,444

50

SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 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
Distribution to owners of other
equity instruments
Transfer of accumulated othercomprehensive income toretained earnings
Purchase and disposal of treasury
stock
Changes from businesscombination
Changes in interestsin subsidiaries
Changes in associates’interests in their subsidiaries
Changes in interests in associates’
capital surplus
Share-based payment transactions
Other
Total transactions with owners
and other transactions
As of December 31, 2018

Noncontrollinginterests
1,088,846

Total equity
6,273,022

21,300264,087

1,110,146

6,537,109

36,061

1,574,457

15,872(165,681)

51,933

1,408,776(30,513)(78,464)-(16,087)

-

-

-

5,505

6,115

6,115

234,8131,400,175-

14,105

-

2,338

1,660
(209)

6,342
475

211,866

1,340,504

1,373,945

9,286,389

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.

51

SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 2019

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

Equity attributable to owners of the parent

As of April 1, 2019
Effect of retrospective
adjustments due to adoption of
new standards*
As of April 1, 2019
(after adjustments)
Comprehensive income
Net income
Other comprehensive
incomeTotal comprehensive income
Transactions with owners andother transactions
Cash dividends
Distribution to owners of other
equity instruments
Transfer of accumulated othercomprehensive income toretained earnings
Purchase and disposal of treasury
stock
Retirement of treasury stock
Changes from businesscombination
Changes in interestsin subsidiaries
Changes in associates’interests in their subsidiaries
Changes in interests in associates’
capital surplus
Share-based payment transactions
Other
Total transactions with owners
and other transactions
As of December 31, 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-

476,587--

476,587

-

-

-

-

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

476,587-(132,087)

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

-

7,596

-

-

(739)

-

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

558,136

-

-

-

-

-

-

-

-

-

-

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

-

-

-

-

(30,934)

-

4,126

-

-

-

-

4,126

-

2,999
-

-

-

-

-

2,999
-

-

16,327-(651,093)

351,1107,596(276,060)

238,772

1,484,089

496,876

5,410,776(92,372)

165,777

7,703,918

52

SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 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
Distribution to owners of other
equity instruments
Transfer of accumulated othercomprehensive income toretained earnings
Purchase and disposal of treasury
stock
Retirement of treasury stock
Changes from businesscombination
Changes in interestsin subsidiaries
Changes in associates’interests in their subsidiaries
Changes in interests in associates’
capital surplus
Share-based payment transactions
Other
Total transactions with owners
and other transactions
As of December 31, 2019

Noncontrollinginterests
1,387,723

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

12,6401,386,366

9,021,844

179,873

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

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

191,396

191,396(95,949)(55,074)-(30,934)-

4,126(2,810)15189
15(64,946)(341,006)

1,487,501

9,191,419

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.”

53

SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 2019(4) Condensed Interim Consolidated Statement of Cash Flows(Millions of yen)

Nine-month period ended
December 31, 2018

Nine-month period ended
December 31, 2019

1,574,457

656,460

Depreciation and amortization

1,254,261

1,513,845

Gain relating to loss of control over subsidiaries(Gain) loss on investments at SoftBank Vision Fund andother SBIA-managed funds
Finance cost
Income on equity method investments
Dilution gain from changes in equity interest
Derivative (gain) loss
Gain relating to settlement of variable prepaid forward
contract using Alibaba shares(Gain) loss from financial instruments at FVTPL
Change in third-party interests in SoftBank Vision Fundand other SBIA-managed funds
Foreign exchange (gain) loss and other non-operating
loss
Income taxes(176,261)(11,879)(838,779)

729,007479,396(257,533)(33,064)(544,574)

456,616(467,408)(332,230)
19,392-(1,218,527)(48,964)

357,353

453,529(190,005)

383

16,467

235,377

688,918

Increase in trade and other receivables
Increase in inventories
Increase in trade and other payables
Other(250,005)(396,730)
137,600
46,938(391,414)(323,685)
165,01379,616

Subtotal

1,636,031

1,747,539

Interest and dividends received
Interest paid
Income taxes paid
Income taxes refunded
Net cash provided by operating activities

35,520(455,447)(403,957)
99,041
911,188

34,947(430,475)(1,170,817)
442,515
623,709(1,065,660)(937,399)(531,829)
232,334(985,064)
183,595(1,143,044)(1,705,911)

421,92148,809(63,980)
91,253(385,626)
1,518(277,800)(57,756)

290,368

58,494(250,875)(158,027)

Cash flows from operating activities
Net income

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 other SBIA-managed funds
Proceeds from sales of investments by SoftBank Vision
Fund and other SBIA-managed funds
Payments for acquisition of control over subsidiaries
Proceeds from loss of control over subsidiaries, net
Payments for acquisition of marketable securities for
short-term trading
Proceeds from sales/redemption of marketable securities
for short-term trading
Payments for loan receivables
Collection of loan receivables
Payments into time deposits

35,09579,089(454,475)(6,480)

Proceeds from withdrawal of time deposits

693,460

693

Other

(84,625)

105,008(2,107,857)(3,759,057)

Net cash used in investing activities

54

SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 2019

(Millions of yen)

Nine-month period ended
December 31, 2018
Cash flows from financing activities
Proceeds in short-term interest-bearing debt, net

Nine-month period ended
December 31, 2019

(7,646)419,214

5,455,766(5,732,283)

7,398,547(4,613,146)-(525,009)

1,892,414

1,583,011(455,280)(688,696)

2,350,262

435(229,487)(84,225)(16,087)(15,344)(22)(215,946)

Cash dividends paid

(47,806)(68,510)

Cash dividends paid to non-controlling interests(29,966)(154,843)

Other(66,098)

29,142

3,113,767

3,064,630

52,61916,911

Increase (decrease) in cash and cash equivalents

1,969,717(53,807)

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

5,304,367

3,804,711

Proceeds from interest-bearing debt
Repayment of interest-bearing debt
Repayment of lease liabilities
Contributions into SoftBank Vision Fund and other
SBIA-managed funds from third-party investors
Distribution/repayment from SoftBank Vision Fund andother SBIA-managed funds to third-party investors
Proceeds from the partial sales of shares of subsidiaries tonon-controlling interests
Purchase of shares of subsidiaries from non-controllinginterests
Distribution to owners of other equity instruments
Purchase of treasury stock

Net cash provided by financing activities
Effect of exchange rate changes on cash and cash equivalents

55

SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 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 nine-month period ended December 31, 2019 are calculated
based on the estimated effective tax rate and certain defined benefit liabilities as of December 31, 2019 are 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.

56

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

57

SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 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 lease payment is substantially all the amount of fair value of the asset.
(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“9. 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 weredeemed to be equivalent to operating leases. These commitments, however, are not included in “Undiscounted future

58

SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 2019minimum 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 the SoftBank Vision Fund and Other SBIA-Managed Funds segment
For SoftBank Vision Fund and Delta Fund, the Company applies the following accounting policies.
a. Consolidation of SoftBank Vision Fund and Delta Fund by the Company
The funds 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. The funds areconsolidated by the Company for the following reasons.
The various entities comprising the funds make investment decisions through their respective investment committees,
which were established as committees of SBIA. SBIA is an advisory company and is a wholly-owned subsidiary of
the Company. As such, the Company has power as defined under IFRS 10 “Consolidated Financial Statements” overthe funds. Furthermore, SBIA receives performance fees and the Company receives distributions attributable tolimited partners based on the investment performance as returns from the funds. The Company has the ability to affectthose returns through its power over the funds, and therefore, the Company is deemed to have control as stipulated in
IFRS 10 over the funds.
Inter-company transactions such as management fees and performance fees to SBIA paid or to be paid from the funds
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 the funds, the portfolio companies that the Company is deemed tocontrol 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 funds are eliminated inconsolidation.

59

SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 2019(b) Investments in associates and joint ventures
Of the portfolio company investments made by the funds, the portfolio companies over which the Company has
significant influence under IAS 28 “Investments in Associates and Joint Ventures” are associates of the Company,
and the portfolio companies that are joint ventures of the funds when, as defined under IFRS 11 “Joint
Arrangements,” the funds have joint control with other investors under contractual arrangements and the investors
have rights to the net assets of the arrangement.
The investments in associates and joint ventures of the Company made by the funds are accounted for as financial
assets at FVTPL in accordance with paragraph 18 of IAS 28, and presented as “Investments from SoftBank Vision
Fund and other SBIA-managed funds accounted for using FVTPL” in the condensed interim consolidated statementof financial position. The payments for these investments are presented as “Payments for acquisition of investments
by SoftBank Vision Fund and other SBIA-managed funds” under cash flows from investing activities in thecondensed interim consolidated statement of cash flows.
(c) Other investments
Investments other than those in associates or joint ventures of the Company made by the funds are accounted for as
financial assets at FVTPL. The presentation of these investments in the condensed interim consolidated statement offinancial 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 other SBIA-managed funds business
Income and loss arising from the SoftBank Vision Fund and other SBIA-managed funds business are separated fromoperating income and loss arising from other businesses, recognized as a component of operating income, andpresented as “Operating income from SoftBank Vision Fund and other SBIA-managed funds” 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 as investment research expenses arising from SBIA and administrative
expenses arising from each entity, are included in “Operating income from SoftBank Vision Fund and other
SBIA-managed funds.”
d. Bridge Investments
Investments acquired by SoftBank Group Corp. or its subsidiaries with the premise of offering such investments to
SoftBank Vision Fund and were made in accordance with the investment eligibility criteria of SoftBank Vision Fundat 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 from the investmentcommittee and other bodies (and certain limited partners, if applicable) at SoftBank Vision Fund and approvals fromrelevant 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 to transfer suchinvestments.
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 had made those investments from the beginning of the fiscal
year. Those items would be presented as “Investments from SoftBank Vision Fund and other SBIA-managed funds
accounted for using FVTPL” in the condensed interim consolidated statement of financial position, “Operating
income from SoftBank Vision Fund and other SBIA-managed funds” in the condensed interim consolidated statementof income, and “Payments for acquisition of investments by SoftBank Vision Fund and other SBIA-managed funds”
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 (loss) 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 the condensed 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.

60

SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 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 other SBIA-managed funds accounted for using FVTPL” in the condensed interim
consolidated statement of 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 (loss) fromfinancial instruments at FVTPL” and “Operating income from SoftBank Vision Fund and other SBIA-managed funds”
in the condensed interim consolidated statement of income, respectively, and payments for acquisition of suchinvestments 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 FundThe funds issue capital calls to their respective limited partners (“Capital Call”).
(a) Contribution from limited partners other than the Company
The interests attributable to limited partners other than the Company (“Third-Party Investors”) are classified as
financial liabilities, “Third-party interests in SoftBank Vision Fund and other SBIA-managed funds” in thecondensed interim consolidated statement of financial position, due to the predetermined finite life and contractual
payment provision to each of the limited partners at the end of the finite life within the limited partnershipagreements. The liabilities are classified as “financial liabilities measured at amortized cost” upon initial recognition.
The carrying amounts attributable to Third-Party Investors represent the amounts that would be distributed inaccordance with the limited partnership agreements in a theoretical liquidation scenario at the end of each quarter.
“Third-party interests in SoftBank Vision Fund and other SBIA-managed funds” fluctuates due to the results of
SoftBank Vision Fund and Delta Fund in addition to contributions from Third-Party Investors in satisfaction of
Capital Call, and distributions and repayments of investments to Third-Party Investors. The fluctuations due to theresults of SoftBank Vision Fund and Delta Fund are presented as “Change in third-party interests in SoftBank
Vision Fund and other SBIA-managed funds” in the condensed interim consolidated statement of income.
Contributions from Third-Party Investors to SoftBank Vision Fund and Delta Fund are included in “Contributions
into SoftBank Vision Fund and other SBIA-managed funds from third-party investors” under cash flows fromfinancing activities in the condensed interim consolidated statement of cash flows. The distributions and repayments
of investments to Third-Party Investors are included in “Distribution/repayment from SoftBank Vision Fund andother SBIA-managed funds to third-party investors” under cash flows from financing activities in the condensed
interim consolidated statement of cash flows.
Uncalled committed capital from Third-Party Investors is not subject to IFRS 9, “Financial Instruments,” and,
therefore, such amount is not recorded in the condensed interim consolidated statement of financial position.
(b) Contribution from the Company
Contributions from the Company as limited partners are eliminated in consolidation.

61

SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 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 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. “SoftBank Vision Fundand Delta Fund segment” was renamed to “SoftBank Vision Fund and Other SBIA-Managed Funds segment”
from the three-month period ended December 31, 2019.
The SoftBank Vision Fund and Other SBIA-Managed Funds segment conducts, mainly through SoftBank Vision
Fund, investment activities in a wide range of technology sectors. The segment income of the SoftBank Vision
Fund and Other SBIA-Managed Funds segment mainly consists of gain and loss arising from investments
recognized at SoftBank Vision Fund and operating expenses incurred by the funds and SBIA. The gain and loss
mainly arise from investments held by SoftBank Vision Fund including the investment in the Company’s
subsidiary and investments which transfer to SoftBank Vision Fund is agreed (gain and loss on investments at
SoftBank Vision Fund and other SBIA-managed funds)
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 (currently Z Holdings Corporation), internet advertising and e-commerce business. In addition,
Yahoo Japan Corporation transitioned to a holding company structure on October 1, 2019 and changed its tradename to “Z Holdings Corporation” from “Yahoo Japan Corporation.”
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 nine-month period ended December 31, 2018 and for the three-month period ended
December 31, 2018 is presented based on the reportable segments after the aforementioned change.

62SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 2019(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.
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 nine-month period ended December 31, 2018

(Millions of yen)

Reportable segments
SoftBank Vision
Fund and Other
SBIA-Managed
Funds

SoftBank

SprintArm

2,645,659

146,043

Total

Brightstar

Net sales
Customers-

3,433,702

Intersegment-

15,879148,78876

19,279184,022

Total-

3,449,581

2,794,447

146,119

812,471

7,202,618

808,792

754,857

255,318

137,205(9,222)

1,946,950

48

386,529784,013

49,395

4,991

1,224,976---

176,261-

176,261

Segment income
Depreciation andamortization
Gain relating to loss ofcontrol over subsidiaries

Other

Reconciliations

Consolidated

Net sales
Customers

149,856-

7,168,452

Intersegment

8,840(192,862)

-

Total

158,696(192,862)

7,168,452

Segment income(39,881)(48,062)

1,859,007

28,674611

1,254,261--

176,261

Depreciation andamortization
Gain relating to loss ofcontrol over subsidiaries

63

793,192

7,018,596

SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 2019

For the nine-month period ended December 31, 2019

(Millions of yen)

Reportable segments
SoftBank Vision
Fund and Other
SBIA-Managed
Funds

SoftBank

SprintArm

2,509,311

142,731

Total

Brightstar

Net sales
Customers-

3,605,570

685,551

6,943,163

Intersegment-

12,214

106,389277

17,183136,063

Total-

3,617,784

2,615,700

143,008

702,734

7,079,226(797,763)

804,891

137,808(42,659)(2,083)

100,194230

506,588

913,428

52,915

5,505

1,478,666-

11,879---11,879Segment income
Depreciation andamortization
Gain relating to loss ofcontrol over subsidiaries

Other

Reconciliations

Consolidated

Net sales
Customers

146,641-

7,089,804

Intersegment

13,227(149,290)

-

Total

159,868(149,290)

7,089,804

Segment income(66,031)(47,127)(12,964)

34,347832

1,513,845--

11,879Depreciation andamortization
Gain relating to loss ofcontrol over subsidiaries

64SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 2019

For the three-month period ended December 31, 2018

(Millions of yen)

Reportable segments
SoftBank Vision
Fund and Other
SBIA-Managed
Funds

SoftBank

SprintArm

Brightstar

Total

Net sales
Customers-

1,213,923

904,070

54,352

281,371

2,453,716

Intersegment

-

7,338

66,35374

6,099

79,864

Total-

1,221,261

970,423

54,426

287,470

2,533,580

Segment income

176,358

230,745

61,990(4,037)(349)

464,707

Depreciation andamortization

17

134,626

266,685

11,743

2,432

415,503

Reconciliations

Consolidated
2,514,599

Other
Net sales
Customers

60,883-

Intersegment

3,002(82,866)-

Total

63,885(82,866)

2,514,599

Segment income(14,765)(11,651)438,291

Depreciation andamortization

14,139103429,74565

SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 2019

For the three-month period ended December 31, 2019

(Millions of yen)

Reportable segments
SoftBank Vision
Fund and Other
SBIA-Managed
Funds

SoftBank

SprintArm

Brightstar

Total

Net sales
Customers-

1,239,009

841,70954,371

238,121

2,373,210

Intersegment

-

5,475

38,892

92

5,612

50,071Total-

1,244,484

880,601

54,463

243,733

2,423,281

Segment income(225,124)

243,978

35,339(15,857)

812

39,148Depreciation andamortization

103

175,729

327,054

17,861

1,786

522,533

Reconciliations

Consolidated
2,438,080

Other
Net sales
Customers

64,870-Intersegment

3,085(53,156)-

Total

67,955(53,156)

2,438,080

Segment income(19,683)(16,877)

2,588

Depreciation andamortization

14,669297

537,49966

SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 2019

3. SoftBank Vision Fund and other SBIA-managed funds business(1) Income and loss arising from the SoftBank Vision Fund and other SBIA-managed funds business included in thecondensed interim consolidated statement of incomea. Overview
Income and loss arising from the SoftBank Vision Fund and other SBIA-managed funds 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 eachfund. 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 other SBIA-managed funds.” As a result, income before income tax from the SoftBank
Vision Fund and other SBIA-managed funds business includes income and loss attributable to the Company aslimited partners, management fees and performance fees to SBIA.
b. Income and loss arising from the SoftBank Vision Fund and other SBIA-managed funds business
The following table shows income and loss arising from the SoftBank Vision Fund and other SBIA-managed funds
business.
(Millions of yen)

Gain and loss on investments at SoftBank Vision
Fund and other SBIA-managed funds
Realized gain and loss on sales of investments1
Unrealized gain and loss on valuation of
investments
Change in valuation for the fiscal year
Reclassified to realized gain and loss recordedin the past fiscal year2
Interest and dividend income from investments
Effect of foreign exchange translation3
Operating expenses
Operating income from SoftBank Vision Fundand other SBIA-managed funds
Finance cost (interest expenses)
Foreign exchange gain and loss
Derivative gain and loss
Change in third-party interests in SoftBank Vision
Fund and other SBIA-managed funds
Other non-operating income and loss
Income before income tax

Nine-month period ended
December 31, 2018

Nine-month period ended
December 31, 2019146,682

14,643

693,296(727,327)-(27,501)

3,092(4,291)

10,0671,111(729,007)

838,779(29,987)(68,756)

808,792(797,763)(18,919)(16,221)66

547

249,439-(453,529)

190,005

(910)

340

584,939(623,092)

Notes:
1. For the nine-month period ended December 31, 2019, SoftBank Vision Fund sold a portion of the shares in
Guardant Health Inc. The gain realized on the partial sale is ¥34,805 million and the loss realized on the sale ofother investment is ¥20,162 million.
2. It represents the unrealized gains and losses on valuation of investments recorded as “Operating income from
SoftBank Vision Fund and other SBIA-managed funds” in the past fiscal years, which are reclassified to realized
gain and loss on sales of investments due to the sales of the shares. For the nine-month period ended December
31, 2019, ¥35,788 million and ¥(8,287) million were reclassified due to the partial sale of the shares in Guardant
Health Inc. and the sale of other investment, respectively.

67SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 2019

3. Unrealized gains and losses on investments are translated using the average exchange rate for the quarter in which
the gains and losses were recognized, while realized gains and losses on disposal of investments are translatedusing the average exchange rate for the quarter in which the shares were disposed. Foreign currency translation
effects are arising from the different foreign currency exchange rates used for unrealized gains and losses andrealized gains and losses.

(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 the funds. Those
performance-based distributions and performance fees attributed to SBIA will be allocated using the method
specified in the limited partnership agreement. The amount of performance-based distribution attributed tolimited partners will be allocated to each limited partner based on the proportion of their respective Equity
contribution. The amount of performance-based distributions is paid to each limited partner after the funds
receive cash through dividend, or disposition or monetization of investments.
Fixed distributions are defined as distributions of Preferred Equity holders which are calculated equal to a 7%
rate per annum based on their contributions. The fixed distributions are made every last business day of themonths 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 andother SBIA-managed funds” included in the condensed interim consolidated statement of financial position) are
as follows:(Millions of yen)(For reference purposes only)
Links with the condensed interim consolidated
financial statements

Third-party interests(Total of current liabilities andnon-current liabilities)

Consolidated statement Consolidated statementof incomeof cash flows(Negative figures represent (Negative figures represent
expenses)
payments)(Breakdown)
As of April 1, 2019
Contributions from third-party
investors
Changes in third-party interests
Attributable to investors entitled to
fixed distribution
Attributable to investors entitled toperformance-based distribution
Distribution/repayment to third-party
investors
Exchange differences on translating
third-party interests*

4,136,965

As of December 31, 2019

4,789,338

1,583,011-

1,583,011(190,005)

190,005-(688,696)-(688,696)(51,937)--

131,703(321,708)

68SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 2019

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 SoftBank Vision Fund’s Third-Party Investors as of December 31, 2019 was$17.5 billion.
(3)

Management fees and performance fees to SBIA
Terms and conditions of management fees and performance fees to SBIA from SoftBank Vision Fund and Delta
Fund, included in income before income tax from the SoftBank Vision Fund and other SBIA-managed funds
business, are as follows.
a. Management fees to SBIAManagement fees to SBIA are, in accordance with the limited partnership agreements, calculated by multiplying
1% per annum by Equity contributions and paid to SBIA by each fund quarterly. A clawback provision is attachedto the management fees received, which is triggered under certain conditions based on future investment
performance.
b. Performance fees to SBIA
Same as the performance-based distributions, the amount of the performance fees to SBIA is calculated using theallocation method as specified in the limited partnership agreements. SBIA is entitled to receive the performancefees when SoftBank Vision Fund and Delta Fund receive cash through disposition, dividend and monetization of
an investment.
During the investment period of SoftBank Vision Fund, payments related to the performance fees to SBIA from
disposition, dividends or monetization of investments were withheld. Instead, in accordance with the limited
partnership agreement, the amount equivalent to the performance fees withheld during the investment period was
temporarily distributed to the limited partners.
After the investment period of SoftBank Vision Fund ended on September 12, 2019, the payment of the amountequivalent to the performance fees due and unpaid to SBIA had been commenced during the three-month period
ended December 31, 2019. The amount equivalent to the performance fees temporarily distributed to the limited
partners is deducted from return of contributions and performance-based distributions to the limited partners in a
post-investment period and paid to SBIA. Of the total amount equivalent to the performance fees due and unpaid,¥21,681 million ($199 million) was paid to SBIA during the three-month period ended December 31, 2019. The
amount equivalent to the performance fees due and unpaid as of December 31, 2019 was ¥26,343 million ($240
million). In addition, the performance fees received, which is triggered under certain conditions based on future
investment performance, are subject to a clawback provision.

4. Business combinations
For the nine-month period ended December 31, 2019
ZOZO, Inc.
(1) Overview of combination
With the aim of strengthening its clothing/fashion e-commerce activities in an effort to further expand its
e-commerce business, Z Holdings Corporation implemented a tender offer for the common shares of ZOZO, Inc.,
as resolved at its Board of Directors meeting held on September 12, 2019. This tender offer was completed on
November 13, 2019, and the Company acquired ZOZO, Inc.’s 152,952,900 common shares in cash for ¥400,737
million. As a result, the Company holds 50.1% of voting rights ratio in ZOZO, Inc., and ZOZO, Inc. became aconsolidated subsidiary of the Company. In addition, in order to procure part of the fund necessary to acquire thetarget shares for this business combination, the Company entered into a borrowing arrangement for ¥400,000
million.

69

SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 2019(2) Summary of acquiree
Name
Nature of business

ZOZO, Inc.
Planning/operation of fashion online shopping website “ZOZOTOWN”
Planning/development of private brand “ZOZO”
Customer support, operation of logistics center “ZOZOBASE”(3) Acquisition dateNovember 13, 2019(4) Consideration transferred and the component(Millions of yen)

Payment by cashA

Total consideration transferred

Acquisition date(November 13, 2019)400,737
400,737(5) Fair value of assets and liabilities, non-controlling interests and goodwill on the acquisition date(Millions of yen)

Acquisition date(November 13, 2019)22,87630,4437,770
8,610
20,964503,017
13,799Cash and cash equivalents
Trade and other receivables
Other current assets
Tangible assets
Right-of-use assets
Intangible assets1
Other non-current assets
Total assets

607,479

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

22,0003,854
28,362
9,263
16,735150,269
3,420

Total liabilities

233,903

Net assets

B

373,576

Non-controlling interests2

C

185,750
212,9113

A-(B-C)

Goodwill

Consideration transferred is allocated to acquired assets and assumed liabilities based on the fair value on theacquisition date. Moreover, the above amounts, which are fair values based on the best estimate at present, maychange in a year from the acquisition date when additional information related to facts and circumstances thatexisted as of the acquisition date may be obtained.

70SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 2019

Notes:
1. Intangible assets
The components of intangible assets are as follows; the estimated useful lives are from 18 to 25 years for customer
relationships.
(Millions of yen)

Acquisition date(November 13, 2019)
Intangible assets with indefinite useful lives
Trademarks
Intangible assets with finite useful lives
Customer relationships
Other

178,720
322,0702,227
503,017Total

2. Non-controlling interests
Non-controlling interests are measured based on the proportionate interests in the fair value of the identifiable net
assets of the acquiree.
3. Goodwill
Goodwill reflects excess earning power expected from future business development and the synergy between the
Company and the acquiree.

(6) Payment for acquisition of control over subsidiaries(Millions of yen)

Payment for the acquisition by cash
Cash and cash equivalents held by the acquiree at the time ofacquisition of control
Payment for the acquisition of control overthe subsidiary by cash

Acquisition date(November 13, 2019)(400,737)
22,876(377,861)(7) Sales and net income of the acquiree
The amounts of the acquiree’s sales and net income after the acquisition date are not material.

5. Other current assets
The components of other current assets are as follows:(Millions of yen)

As ofMarch 31, 2019
498,026
113,209
123,929
31,392
766,556

Tax receivable*
Contract assets
Prepaid expense
Other
Total

As of
December 31, 2019
263,107167,269
101,542
40,021
571,939

Note:* Withholding income tax of ¥422,648 million related to dividends within the group companies was refunded in July 2019.
In addition, tax receivable as of December 31, 2019 includes the withholding income tax of ¥102,100 million related todividends within the group companies.

71SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 2019

6. Assets classified as held for sale
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 18. Gain relating to settlement of variable prepaid forward contract using Alibaba
shares.”7. 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
December 31, 2019
194,060
1,421,332
931,80980,991
339,448
148,783
3,116,423

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.

8. 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
Trademarks1
Other
Intangible assets with finite useful lives
Software
Customer relationships1
Technologies
Spectrum migration costs
Management contracts2
FCC licenses3
Trademarks4
Favorable lease contracts5
Other
Total

As of
December 31, 2019

4,155,126
693,861
12,763

4,103,878
863,993
7,341

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

725,343
516,412435,777
151,458
76,99364,292
12,061
237,080
7,194,628

Notes:
1. As a result of the consolidation of ZOZO, Inc. in November 2019, trademarks of ¥178,720 million and customer
relationships of ¥322,070 million were recognized. The details are described in “Note 4. Business combinations.”
2. The management contracts reflect excess earnings in the future expected from the agreements which Fortress enteredinto regarding the management of assets under their funds.

72SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 2019

3. 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.
4. For the three-month period ended December 31, 2019, Sprint decided to discontinue its Virgin Mobile services, one of
the brands in the prepaid business, and notified Virgin Enterprises Limited that the agreement associated with the usageof trademarks would not be renewed. As a result, Sprint revised the useful life of these trademarks in future years. As
such, compared to the amounts previously recorded, trademarks decreased by ¥41,746 million ($381 million) andselling, general and administrative expenses increased by ¥41,525 million ($381 million) in the condensed interim
consolidated statement of income for the nine-month period ended December 31, 2019.
5. 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.

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

As ofMarch 31, 2019
Current
Short-term borrowings1,2
Commercial paper
Current portion of long-term borrowings3
Current portion of corporate bonds
Current portion of installment payables
Current portion of financial liabilities relating to sale ofshares by variable prepaid forward contract4
Current portion of lease obligations5
Total
Non-current
Long-term borrowings1,3,6
Corporate bonds
Installment payables
Financial liabilities relating to sale of shares by
variable prepaid forward contract7
Lease obligations5
Total

As of
December 31, 2019

499,179
42,000820,899
1,042,253
11,511

1,755,370
291,000
991,677
439,636
5,422

730,601-

334,5173,480,960

3,483,105

5,102,091
6,538,785
5,315

6,161,709
7,388,963
3,171-

196,605

557,955
12,204,146

13,750,448

Notes:
1. The short-term borrowings and long-term borrowings as of December 31, 2019 include ¥425,552 million (¥36,571
million as of March 31, 2019) and ¥ 295,743 million of borrowings in SoftBank Vision Fund.
2. The increases in short-term borrowings for the nine-month period ended December 31, 2019 are mainly due toincreases of ¥427,325 million, ¥388,981 million, and ¥170,516 million in Z Holdings Corporation, SoftBank Vision
Fund, and SoftBank Corp., respectively.
3. 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 December 31, 2019
include ¥94,996 million (¥102,879 million as of March 31, 2019) and ¥153,714 million (¥191,297 million as of March
31, 2019) of borrowings from these transactions, respectively.

73

SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 2019

4. Decrease was made due to the settlement of the variable prepaid forward contract using Alibaba shares. The details aredescribed in “Note 18. Gain relating to settlement of variable prepaid forward contract using Alibaba shares.”
5. 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.
6. ¥920,569 million of the listed shares held by SoftBank Vision Fund are pledged as collateral for ¥295,743 million of
long-term borrowings as of December 31, 2019. These listed shares are included within “Investments from SoftBank
Vision Fund and other SBIA-managed funds accounted for using FVTPL” in the condensed interim consolidated
statement of financial position as of December 31, 2019.
The long-term borrowings include a cash collateral call clause and a mandatory prepayment clause, which may betriggered under certain circumstances such as a significant decrease in the fair value of pledged listed shares. The cash
collateral call clause and the mandatory prepayment clause may require additional collateral in cash or all or part of theborrowings to become due and payable.
The creditors would be able to dispose of the listed shares pledged as collateral if (among other things) the cash
collateral call clause or the mandatory prepayment clause was triggered and SoftBank Vision Fund did not pay therelevant amounts due to the creditors accordingly. The borrowings are limited-recourse debts.
7. In November, 2019, West Raptor Holdings, LLC (“WRH LLC”), a wholly-owned subsidiary of the Company, enteredinto a variable prepaid forward contract using Alibaba shares with a financial institution and procured ¥179,145 million($1.65 billion). At the settlement dates, which are expected to be October and November, 2021, the number of Alibaba
shares settled by the variable prepaid forward contract is determined by reference to the market price of the shares atthe valuation dates prior to the settlement dates. A cap and a floor are set for the price of shares settled, and the variable
prepaid forward contract is classified as a hybrid financial instrument with embedded derivatives. Embedded
derivatives are measured at fair value and ¥14,050 million is recognized as “Derivative financial liabilities (non-current
liabilities)” in the condensed interim consolidated statement of financial position as of December 31, 2019.
WRH LLC has the option (“cash settlement option”) to settle the variable prepaid forward contract by either delivering
cash or a combination of cash and Alibaba shares. If WRH LLC elects the cash settlement option, the cash equivalent
to the fair value of the number of shares for the settlement, which is determined by the market price of the shares, will
be paid.
Alibaba shares held by WRH LLC are pledged as collateral. The Company applies the equity method to these sharesand they are included in “Investments accounted for using the equity method” in the condensed interim consolidated
statement of financial position as of December 31, 2019. The carrying amount of Alibaba shares pledged as collateralby the Company is ¥51,962 million as of December 31, 2019.

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

Nine-month period ended Nine-month period ended
December 31, 2018
December 31, 2019
354
228,214(8,000)191,000(7,646)419,214

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

74

SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 2019(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)

Proceeds from borrowings
Proceeds from issuance of corporate bonds
Proceeds from procurement relating to settlement ofshares by variable prepaid forward contract*
Proceeds from sale-leaseback of newly acquired
equipment
Total

Nine-month period ended Nine-month period ended
December 31, 2018
December 31, 2019
4,415,539
5,989,402
747,744
1,230,000-

179,145

292,483-

5,455,766

7,398,547

Note:*The amount is procured under the variable prepaid forward contract using Alibaba shares. The details are described in “Notes 7”
under “(1) Components of interest-bearing debt.”(4) Components of repayment of interest-bearing debt
The components of “Repayment of interest-bearing debt” in the condensed interim consolidated statement of cash
flows are as follows:(Millions of yen)

Nine-month period ended Nine-month period ended
December 31, 2018
December 31, 2019
(4,445,333)(3,682,050)(955,504)(922,545)(14,975)(8,551)(316,471)(5,732,283)(4,613,146)

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

10. 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 18. Gain relating to settlement of variable prepaid forward contract using Alibaba shares.”11. Other current liabilities
The components of other current liabilities are as follows:(Millions of yen)

As ofMarch 31, 2019
252,812201,979
428,796
112,090
69,97735,33957,362
1,158,355

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

75

As of
December 31, 2019
250,115
217,652
137,167
108,763
84,60038,842
61,151
898,290

SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 2019

Note:
*Payment of withholding income tax of ¥422,648 million related to dividends within the group companies was made in
April 2019. In addition, withholding income tax as of December 31, 2019 includes the withholding income tax of¥102,100 million related to dividends within the group companies.

12. Foreign currency exchange rates
Exchange rates of the major currencies used for translating financial statements of foreign operations are as follows:(1) Rate at the end of the period
(Yen)
As of
December 31, 2019109.56143.48

As ofMarch 31, 2019110.99144.98USD
GBP(2) Average rate for the quarter

For the nine-month period ended December 31, 2018

USD
GBP

Three-month period ended
June 30, 2018108.71147.54Three-month period ended
September 30, 2018111.55145.84(Yen)
Three-month period ended
December 31, 2018112.83144.48For the nine-month period ended December 31, 2019

USD
GBP

Three-month period ended
June 30, 2019110.00140.88Three-month period ended
September 30, 2019107.70132.73(Yen)
Three-month period ended
December 31, 2019108.98139.55

13. Equity(1) Capital surplus
On June 27, 2019, Z Holdings Corporation issued 1,511,478,050 new shares for ¥456.5 billion to SoftBank Corp.
through a third-party allotment (the “Third-Party Allotment”). Z Holdings 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 Z Holdings 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 Z Holdings Corporation on June 27, 2019.
As a result of the Third-Party Allotment and the Tender Offer, the ownership percentage in Z Holdings
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”).

76SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 2019

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)

Balance at the beginning of the period

Nine-month period ended
December 31, 2018

Nine-month period ended
December 31, 2019

11,162

46,827

Increase during the period1

2

28,6192(740)(56,991)

10,424

18,455Decrease during the period

Balance at the end of the period

Notes:
1. For the nine-month period ended December 31, 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 theBoard 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
6,661

As of
December 31, 2019
5,582

Debt financial assets at FVTOCI

267

82

Cash flow hedges
Exchange differences on translating
foreign operations(45,791)(3,389)329,131

163,502290,268

165,777

Equity financial assets at FVTOCI

Total

77

SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 201914. Other operating loss
The components of other operating income and loss are as follows:(Millions of yen)

SoftBank segment
Gain from remeasurement relating to businesscombination
Other
Spring segment
Loss on disposal of property, plant andequipment1
Impairment loss on tangible and intangible
assets2
Litigation3
Gain on contract termination
Reversal of favorable lease
Other
Other
Income and loss on equity method investments
at Fortress
Other
Total

Nine-month period ended
December 31, 2018

Nine-month period ended
December 31, 2019

3,751

-

(81)

-

(71,721)(75,362)-(25,403)(5,607)
10,834(3,810)(237)

29,404
4,426
6,394(3,859)

3,351

-

2,999

(70,730)(54,191)

Notes:
1. For the nine-month period ended December 31, 2019, ¥72,537 million of loss resulted from the write-off ofleased devices related to lease cancellations prior to the end of the scheduled customer lease terms, where
customers did not return the devices to Sprint, are recognized.
2. Mainly, for the nine-month period ended December 31, 2019, Sprint entered into a sale and leaseback contract for
their corporate headquarters (buildings, land, and other) and accordingly, the related assets were measured at fairvalue after deducting the sale cost and were less than their carrying amounts. As a result, ¥22,725 million of
impairment loss was recorded. The fair value was calculated based on the sale price and classified as level 3
within the fair value hierarchy. In addition, the sale closed and the leaseback contract commenced on July 9,
2019.
3. Mainly, for the nine-month period ended December 31, 2019, this is the amount received in relation to the legal
recoveries for certain patent infringement lawsuits.

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

Nine-month period ended
December 31, 2018

Nine-month period ended
December 31, 2019

(479,396)(456,616)

16. Income on equity method investments
For the nine-month period ended December 31, 2019
Alibaba received newly-issued share (a 33% equity interest) of Ant Small and Micro Finance Services Group Co.,
Ltd. (“Ant Financial”) in September 2019, pursuant to the 2014 share and asset purchase agreement, as amended,among Alibaba, Ant Financial, and others. The consideration paid by Alibaba to receive the newly-issued 33%
equity interest in Ant Financial was funded by payments from Ant Financial and its subsidiaries to Alibaba in
consideration for certain intellectual property rights and assets held by Alibaba. Following this, Alibaba recorded a78

SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 2019

gain of CNY 69.2 billion, which was the result from the transfer of such intellectual property rights and assets to
Ant Financial and the basis difference determined based on Alibaba’s share of Ant Financial’s net assets, net of its
corresponding deferred tax effect.
As a result, the Company recognized ¥277,175 million of income on equity method investments.

17. Dilution gain from changes in equity interest
For the nine-month period ended December 31, 2019
Alibaba issued new shares, in connection with its listing on The Stock Exchange of Hong Kong Limited on
November 26, 2019. Accordingly, the Company recorded ¥291,551 million of dilution gain from changes in equity
interest related to Alibaba.

18. Gain relating to settlement of variable prepaid forward contract using Alibaba shares
On June 3, 2019, a variable prepaid forward contract, which WRH LLC, a wholly-owned subsidiary of the Company,
entered into with Mandatory Exchangeable Trust (the “Trust”) in June 2016, in order to sell Alibaba shares, wassettled 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 of variable prepaid forward contract using Alibaba
shares was recorded for the nine-month period ended December 31, 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 withthe exchange of Trust Securities. At the exchange date (June 3, 2019), Trust Securities are exchanged for a certain
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 a floor 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 at fairvalue.

79

SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 2019

Outline of the transaction
subsidiary
wholly-owned subsidiaryWest Raptor Holdings, LLC
Approximately $5.4 billion
for advances received
for the sale of Alibaba sharesby variable prepaid forward contract

third party to
SoftBank

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

19. Gain (loss) from financial instruments at FVTPL
For the nine-month period ended December 31, 2019, ¥359,212 million of loss was recognized due to the decline infair value of WeWork shares held by a wholly-owned subsidiary of the Company.
In addition, gain and loss on valuation of WeWork shares held by SoftBank Vision Fund are included in “Operating
income from SoftBank Vision Fund and other SBIA-managed funds” under the condensed interim consolidated
statement of income.

20. Other non-operating loss
The components of other non-operating income and loss are as follows:(Millions of yen)Interst income
Provisions for doubtful accounts
Impairment loss on equity method investments
Gain from remeasurement relating todiscontinuing the use of the equity method
Loss on redemption of corporate bonds
Other
Total

Nine-month period ended
December 31, 2018
22,628Nine-month period ended
December 31, 201930,571(140)(24,979)(47,909)(11,668)

24,842-(14,538)-(2,174)(17,291)(71)(6,147)

21. Supplemental information to the condensed interim consolidated statement of cash flows(1) Income taxes paid and income taxes refunded
For the nine-month period ended December 31, 2019
Payment of withholding income tax related to dividends within the group companies of ¥449,542 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 Z
Holdings Corporation shares held by SoftBank Group Japan Corporation due to an acquisition of its own sharesthrough the Tender Offer by Z Holdings Corporation of ¥78,801 million are included in “Income taxes paid.”
In addition, refunded withholding income tax related to dividends within the group companies of ¥422,648 million
is included in “Income taxes refunded.”80SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 2019(2) Non-cash transactions related to sale of Alibaba shares by variable prepaid forward contract
For the nine-month period ended December 31, 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 18. Gain relating to settlement of variable prepaid forward contract using Alibaba shares.”81