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 4 of this report.

SoftBank Group Corp.
Consolidated Financial Report
For the Fiscal Year Ended March 31, 2018 (IFRS)Tokyo, May 9, 2018

1.

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

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

OperatingincomeNet sales
Amount%AmountIncomebefore incometax
Amount%%

Net income

Net income
attributable toowners of theparentTotal
comprehensive
incomeAmountAmountAmount%%%Fiscal year ended
March 31, 2018

¥9,158,765 2.9 ¥1,303,801 27.1 ¥384,630 (46.0) ¥1,237,812 (16.0) ¥1,038,977 (27.2) ¥1,329,532 (7.3)

Fiscal year ended
March 31, 2017

¥8,901,004 0.2 ¥1,025,999 12.9 ¥712,526 (22.5) ¥1,474,430 164.1 ¥1,426,308 200.8 ¥1,433,901 452.4

Fiscal year ended
March 31, 2018
Fiscal year ended
March 31, 2017

Ratio of net income
Ratio of income Ratio of operating
to equity,
before income tax income to net sales
attributable to
to total assets (%)(%)
owners of theparent (%)

Basic earnings
per share (yen)Diluted earnings
per share (yen)¥933.54¥908.38

23.7

1.4

14.2

¥1,287.01¥1,275.64

46.0

3.1

11.5

Notes:
1. Income on equity method investments
Fiscal year ended March 31, 2018:¥ 404,584 million
Fiscal year ended March 31, 2017:¥ 321,550 million
2. Net sales, operating income, and income before income tax are presented based on the amounts from continuing operations only.

(2) Financial Position

Total assets

Total equity

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

Equity per share
attributable toowners of theparent (yen)As of March 31, 2018

¥31,180,466¥6,273,022¥5,184,176

16.6

4,302.26

As of March 31, 2017¥24,634,212¥4,469,730¥3,586,352

14.6

3,292.40

Note:*“Equity per share attributable to owners of the parent” is based on “Equity attributable to owners of the parent” excluding theamount not attributable to ordinary shareholders.

(3) Cash Flows

Fiscal year ended
March 31, 2018
Fiscal year ended
March 31, 2017

Operating activities

Investing activities

Financing activities

Cash and cash
equivalents
at the end of the year

¥1,088,623¥(4,484,822)¥4,626,421¥3,334,650¥1,500,728¥(4,213,597)¥2,380,746¥2,183,102

2.

Dividends
Dividends per shareFirst quarter
Fiscal year ended
March 31, 2017
Fiscal year ended
March 31, 2018
Fiscal year ending
March 31, 2019
(Forecasted)

Fiscal year ended
March 31, 2017
Fiscal year ended
March 31, 2018
Fiscal year ending
March 31, 2019
(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

-

22.00

-

22.00

44.00

Total amount ofdividends(Annual)Payout ratio(Consolidated)

Ratio of dividend
to equity
attributable toowners of theparent(Consolidated)(Millions of yen)%%

47,9213.4

1.6

47,938

4.7

1.2

-

* Notes(1) Significant changes in scope of consolidation (changes in scope of consolidation of specified subsidiaries): Yes
Newly consolidated: One company
The Japan Net Bank, Limited
Excluded from consolidation: One company
SoftBank Group Japan GK
Notes:
1. Please refer to page 37 “(1) Significant Changes in Scope of Consolidation for the Fiscal Year Ended March 31, 2018”
under “3. Notes to Summary Information” for details.
2. Foreign subsidiaries prepare stand-alone financial statements only under circumstances where it is necessary under
their local laws and practices. Applicability of the Cabinet Office Ordinance on Disclosure of Corporate Affairs 19.10
paragraph 1 through 3, relating to disclosures such as business operations, is determined by using the financial
statements.
On the other hand, for foreign subsidiaries that do not prepare stand-alone financial statements, the information of thecapital and the net assets for these companies is not available. Therefore, the Cabinet Office Ordinance on Disclosureof Corporate Affairs 19.10 paragraph 1 is used to determine as to whether the companies are the specified subsidiaries.
For fund-type subsidiaries, the amounts of the net assets based on the financial statements prepared in accordance withthe corresponding laws and practices are used to determine the applicability of the Cabinet Office Ordinance on
Disclosure of Corporate Affairs 19.10 paragraph 2.
(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 37 “(2) Changes in Accounting Policies” and “(3) Changes in Accounting Estimates” under “3.
Notes to Summary Information” for details.
(3) Number of shares issued (common stock)[1] Number of shares issued (including treasury stock):
As of March 31, 2018:
1,100,660,365 shares
As of March 31, 2017:
1,100,660,365 shares[2] Number of treasury stocks:
As of March 31, 2018:
11,162,425shares
As of March 31, 2017:
11,378,076 shares[3] Number of average stocks during twelve-month period (April-March):
Fiscal year ended March 31, 2018:
1,089,464,753 sharesFiscal year ended March 31, 2017:
1,108,236,739 shares

[For Reference]
Financial Highlights (Non-Consolidated)(1) Non-Consolidated Results of Operations(Percentages are shown as year-on-year changes)

Net sales

Operating income

Ordinary income

Net income

Amount%Amount%Amount%Amount%Fiscal year ended
March 31, 2018

¥44,051(4.9)¥(11,865)-¥(150,510)-¥204,676(92.5)

Fiscal year ended
March 31, 2017¥46,3120.4¥8,595(25.1)¥2,870,956

140.6¥2,745,949

252.1

Net income pershare-basic (yen)Net income pershare-diluted (yen)Fiscal year ended
March 31, 2018

¥187.87¥187.64

Fiscal year ended
March 31, 2017

¥2,477.76¥2,475.49(2) Non-Consolidated Financial Position
Total assets

Net Assets

Equity ratio (%)

Shareholders’ equity
per share (yen)As of March 31, 2018¥14,836,396¥3,876,390

26.1¥3,549.97

As of March 31, 2017¥12,555,813¥3,707,806

29.5¥3,402.05

Note: Shareholders’ equity (Non-consolidated)
As of March 31, 2018:¥3,867,685 million
As of March 31, 2017:¥3,705,790 million(3) Differences in Non-Consolidated Operating Results from the Previous Fiscal YearThe decrease in ordinary income and net income in the fiscal year ended March 31, 2018 from the previous fiscal year
ended March 31, 2017 was mainly attributable to a ¥2,922,297 million year-on-year decrease in dividends fromsubsidiaries and associates.
Financial Highlights (Non-Consolidated) are prepared in accordance with Accounting Principles Generally Accepted in Japan.
* This consolidated financial report is not subject to audit procedures by certified public accountants or an auditing firm.
* Note to forecasts on the consolidated results of operations and other items
Descriptions regarding the future are estimated based on the information that the Company is able to obtain at the present point intime and assumptions which are deemed to be reasonable. However, actual results may be different due to various factors.
On May 9, 2018, the Company will hold an earnings results briefing for the media, institutional investors, and financial
institutions. This earnings results briefing will be broadcast live on our website in both Japanese and English athttps://www.softbank.jp/en/corp/irinfo/. The Data Sheet will also be posted on the Company’s website around 4 p.m. on the same
day at https://www.softbank.jp/en/corp/irinfo/presentations/.

SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2018

(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. 9
(2) Overview of Financial Position ........................................................................................................................ P. 28(3) Overview of Cash Flows .................................................................................................................................. P. 34(4) Forecasts ........................................................................................................................................................... P. 36
2．Basic Approach to the Selection of Accounting Standards........................................................................P. 36

3. Notes to Summary Information ............................................................................................................................... P. 37(1) Significant Changes in Scope of Consolidation for the Fiscal Year Ended March 31, 2018 ............................... P. 37(2) Changes in Accounting Policies ........................................................................................................................ P. 37(3) Changes in Accounting Estimates ..................................................................................................................... P. 37
4. Consolidated Financial Statements and Primary Notes ........................................................................................... P. 38(1) Consolidated Statement of Financial Position ................................................................................................... P. 39(2) Consolidated Statement of Income and Consolidated Statement ofComprehensive Income .................................................................................................................................... P. 41(3) Consolidated Statement of Changes in Equity .................................................................................................. P. 43(4) Consolidated Statement of Cash Flows ............................................................................................................. P. 45(5) Significant Doubt about Going Concern Assumption ....................................................................................... P. 47(6) Notes to Consolidated Financial Statements ..................................................................................................... P. 47

1

SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2018

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.
SprintSprint Corporation
Brightstar
Brightstar Global Group Inc.
Arm
Arm Limited (see note below)
SoftBank Vision Fund
SoftBank Vision Fund L.P.
SoftBank Vision Fund (AIV M1) L.P.
SoftBank Vision Fund (AIV M2) L.P.
Delta Fund
Fortress
Alibaba
The fiscal year
The fourth quarter
The fiscal year-end
The previous fiscal year-end

SoftBank Vision Fund (AIV S1) L.P.
SB Delta Fund (Jersey) L.P.
Fortress Investment Group LLC
Alibaba Group Holding Limited
Fiscal year ended March 31, 2018
Three-month period ended March 31, 2018
March 31, 2018
March 31, 2017

Note:
In the fourth quarter, the Company reorganized Arm Holdings plc and its subsidiaries. Following this reorganization, Arm
Limited is listed as a principal business entity. SoftBank Group Corp. will use a portion of its Arm Limited shares to satisfy
approximately $8.2 billion out of its total commitment to SoftBank Vision Fund. At the fiscal year-end, SoftBank Vision
Fund held 19.7% stake in Arm Limited. At the time of completion of the commitment by SoftBank Group Corp. related to
Arm Limited shares, SoftBank Vision Fund will hold a 24.99% stake in Arm Limited.

2SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2018

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

1. Highlights of results
 Net sales: ¥9,158.8 billion (increased 2.9% yoy) Operating income: ¥1,303.8 billion (increased 27.1% yoy)
- Boosted by ¥346.0 billion of gain on valuation of shares at SoftBank Vision Fund
 Net income attributable to owners of the parent: ¥1,039.0 billion (decreased 27.2% yoy)
- Boost by Sprint’s income of ¥685.0 billion arising from the U.S. tax reform and by income on equity
method investments related to Alibaba of ¥424.8 billion- Derivative loss related to a forward contract on Alibaba shares of ¥604.2 billion was recorded.
However, profits will be recorded in June 2019 on the reversal of derivative liabilities. The cumulative derivative loss of the contract over the three years will be converged to $900 million.
2. Progress on investments
 $29.7 billion invested to date by SoftBank Vision Fund and Delta Fund1
 Aside from the above, the Company invested a total of $12.9 billion in Uber and DiDi2

The SoftBank Vision Fund and Delta Fund Segment
The Company established the SoftBank Vision Fund and Delta Fund segment as a new reportable segment during the threemonths ended June 30, 2017 (the “first quarter”), upon the first major closing of SoftBank Vision Fund on May 20, 2017.
To enable investors to appropriately understand and assess the Company’s management performance, the Company haspresented operating income arising from SoftBank Vision Fund and Delta Fund separately from that of other segments ina subcategory under operating income in the consolidated statement of income as “Operating income from SoftBank Vision
Fund and Delta Fund.”Partial Changes to the Covenants of Notes Issued in 2015 and Their Exchange for Exchange Notes
On April 3, 2018, SoftBank Group Corp. carried out partial changes to the covenants of foreign currency-denominatedsenior notes issued in 2015 (the “Notes Issued in 2015”) to match the covenants of foreign currency-denominated seniornotes issued in September 2017 (the “Notes Issued in 2017”). However, SoftBank Group Corp. exchanged the Notes Issued
in 2015 for newly issued notes (the “Exchange Notes,” whose covenants matched those of the Notes Issued in 2017) withbondholders who were willing to make such an exchange.
Principal value of Notes Issued in 2015 before and after the exchange
Unit

Principal value
before exchange

Exchange Notes(a)

Notes Issued
in 2015(Remaining) (b)Principal value
after exchange(a)+(b)

USD-denominated

USD million

2,000

500

1,530

2,030

EUR-denominated

EUR million

2,250

1,170

1,190

2,360

The exchange of the Notes Issued in 2015 for the Exchange Notes was completed on April 3, 2018, however the accounting basis of the exchange was considered to be March 22, 2018, the exchange decision date. As a result, SoftBank
Group Corp. derecognized the Notes Issued in 2015 and recognized the Exchange Notes in the fiscal year ended March 31,
2018. The expenses of ¥33,377 million related to the partial changes to the covenants and the exchange for Exchange Notes
12This includes the amount of investments made by holding entities that are jointly held by SoftBank Vision Fund and the Company’s subsidiary.
Investments in Uber Technologies, Inc. (“Uber”) and Xiaoju Kuaizhi Inc. (“DiDi”) may be offered to SoftBank Vision Fund in the future, subject toapplicable consent and regulatory and other approvals.

3

SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2018(loss on exchange of corporate bonds, consent fees about changing certain conditions of covenants, and loss arising fromcancelation of hedge accounting for the currency swaps) were recognized in the consolidated statement of income of the
fiscal year ended March 31, 2018.

a. Consolidated Results of Operations(Millions of yen)

Fiscal year ended March 31
2017
2018

ChangeChange %8,901,004

9,158,765

257,761

2.9%

1,025,999

1,000,820(25,179)(2.5%)

1,025,999
712,526
919,631302,981
1,303,801
384,630
1,237,812

302,981
277,802(327,896)
318,18127.1%(46.0%)
34.6%

Discontinued operations
Net income from discontinued operations

554,799-(554,799)-

Net income
Net income attributable to owners of the parent

1,474,430
1,426,308

1,237,812
1,038,977(236,618)(387,331)(16.0%)(27.2%)

Continuing operations
Net sales
Operating income (excluding income from
SoftBank Vision Fund and Delta Fund)
Operating income from SoftBank Vision
Fund and Delta Fund
Operating income
Income before income tax
Net income from continuing operations

Reference: Average exchange rates used for translations
Fiscal year ended
March 2017
Q1
Q2
Q3
Q4
USD / JPY

¥109.07¥102.91¥108.72¥113.76

Q1

Q2¥111.61¥111.38

Fiscal year ended
March 2018
Q3
Q4
¥112.74¥108.85

An overview of the consolidated results of operations for the fiscal year is as follows:
Continuing Operations(a) Net Sales
Net sales increased ¥257,761 million (2.9%) year on year, to ¥9,158,765 million. Net sales increased in the following
segments: Domestic Telecommunications, Yahoo Japan, Distribution, and the Arm segment (Arm’s net sales reflected results of operations of Arm from September 6, 2016, onward). However, net sales decreased in the Sprint segment.
(b) Operating Income (excluding income from SoftBank Vision Fund and Delta Fund)
Operating income (excluding income from SoftBank Vision Fund and Delta Fund) decreased ¥25,179 million (2.5%) year
on year, to ¥1,000,820 million. Segment income deteriorated ¥36,576 million in the Domestic Telecommunications segment, ¥10,529 million in the Yahoo Japan segment, ¥20,971 million in the Distribution segment, and ¥44,299 million in
the Arm segment. Meanwhile, segment income increased ¥92,860 million in the Sprint segment.
Segment loss in the Distribution segment included an impairment loss of ¥50,497 million for Brightstar.
(c) Operating Income from SoftBank Vision Fund and Delta Fund
Operating income from SoftBank Vision Fund and Delta Fund was ¥302,981 million (not recorded in the previous fiscal

4SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2018year). Unrealized gain on valuation of investments of ¥345,975 million mainly contributed to the income for the fiscal year,
reflecting an increase in the fair value of NVIDIA Corporation (“NVIDIA”) shares held by SoftBank Vision Fund andrecorded as financial assets accounted for using FVTPL.

(d) Operating Income
As a result of (b) and (c), operating income increased ¥277,802 million (27.1%) year on year, to ¥1,303,801 million.

(e) Finance Cost
Finance cost increased ¥48,821 million (10.4%) year on year, to ¥516,132 million, mainly due to increases in interest
expense of ¥39,692 million at SoftBank Group Corp.
Interest expense at Sprint declined ¥5,519 million (2.0%) ($106 million (4.2%)) year on year.

(f) Income on Equity Method Investments
Income on equity method investments increased ¥83,034 million (25.8%) year on year, to ¥404,584 million. This was
mainly due to a year-on-year increase of ¥94,607 million (28.7%) in income on equity method investments related to
Alibaba, to ¥424,771 million.
The difference between Alibaba’s net income (IFRS basis) for the fiscal year ended December 31, 2017, ((A) in the tablebelow) and net income (US GAAP basis) ((B) below) is mainly due to the impairment loss of CNY 18,116 million frominvestment in Alibaba Pictures Group Ltd that was recognized on a US GAAP basis, but not on an IFRS basis. A gain on
revaluation of its equity interest in Alibaba Pictures Group was recognized in 2015, when Alibaba Pictures Group became
an equity method associate on a US GAAP basis. However, a gain on revaluation was not recognized on an IFRS basis,
since Alibaba Pictures Group remained a subsidiary. Consequently, there was a difference between the carrying amount of
Alibaba Pictures Group Ltd on a US GAAP basis and on an IFRS basis.
Reference: Net Income of Alibaba and the Company’s Income on Equity Method Investments
Twelve months ended December 313
2016
2017

ChangeAlibaba
Net income (US GAAP)Net income (IFRSs)

Income on equity method investments related to Alibaba(Reference) Interest ratio as of December 31
Income on equity method investments(Reference) Effective exchange rate CNY/JPY
Income on equity method investments
3

Million CNY

Million CNY

38,393(B) 67,071

Million CNY

28,678Million CNY

Million CNY

Million CNY

62,885(A) 84,893

22,0082017

Fiscal year ended March 31
2018

Change30.24%

29.36%(0.88) pp

Million CNY

Million CNY

Million CNY

19,57025,0885,518¥16.87¥16.93¥0.06

Million yen

Million yen

Million yen

330,164

424,771

94,607The Company applies the equity method to the financial statements of Alibaba on a three-month time lag, as it is impracticable to conform the reporting
period of Alibaba due to the contract with Alibaba, among other reasons. However, the Company performs necessary adjustments for material transactions or events that arise during the lag period and which are publicly announced by Alibaba.

5SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2018(g) Gain on Sales of Shares of Associates
Gain on sales of shares of associates was ¥1,804 million (gain of ¥238,103 million in the previous fiscal year). In theprevious fiscal year, the Company sold a portion of Alibaba shares to Alibaba, two Singaporean sovereign wealth funds,
and Alibaba Partnership.4(h) Foreign Exchange Gain and Loss
Foreign exchange loss was ¥34,518 million (gain of ¥53,336 million in the previous fiscal year).

(i) Derivative Gain and Loss
Derivative loss was ¥630,190 million (loss of ¥252,815 million in the previous fiscal year). This was mainly attributable
to a loss of ¥604,156 million recorded in relation to a collar transaction embedded in a variable prepaid forward contract
for Alibaba shares (see note below).
Regarding the collar transaction, the fair value (primarily linked to the share price of Alibaba) are measured at the endof each quarter and recognized as derivative liabilities, while changes are recognized as a gain or loss. However, the total
amount of derivative liabilities will be reversed on the settlement date of the collar transaction (June 2019), and the sameamount will be recognized as a gain. Consequently, the cumulative derivative gain and loss for the three years, from theconclusion of the variable prepaid forward contract in June 2016 until the settlement date, will be a loss of $900 million,
equal to the amount of derivative assets initially recognized.
Note: See “(2) Transaction for sale of Alibaba shares by variable prepaid forward contract” under “7. Interest-bearing debt” in “(6) Notes
to Consolidated Financial Statements” in “4. Consolidated Financial Statements and Primary Notes” for details of the variable prepaid
forward contract.

(j) Gain and Loss from Financial Instruments at FVTPL
Loss from financial instruments at FVTPL was ¥68 million (loss of ¥160,419 million in the previous fiscal year). In theprevious fiscal year, loss was recognized due to the change in the fair value of investments in India.

(k) Changes in Third-party Interests in SoftBank Vision Fund and Delta Fund
Changes in third-party interests in SoftBank Vision Fund and Delta Fund increased ¥160,382 million (negative impact on
income; not recorded in the previous fiscal year). Of the third-party interests in SoftBank Vision Fund and Delta Fundpresented in consolidated statement of financial position, the fluctuations arising from SoftBank Vision Fund and Delta
Fund’s results were recorded as the changes.

4

Alibaba Partnership is not an affiliate of Alibaba.

6

SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2018(l) Other Non-operating Income and Loss
Other non-operating income was ¥15,731 million, compared with a loss of ¥45,917 million in the previous fiscal year. The
primary components were as follows:(Millions of yen)

Dilution gain from changes
in equity interest

Fiscal year ended March 31
2017
2018
77,54045,186

Primary components
Private placement of new shares by Alibaba

Loss on exchange of corporate bonds-(19,809) Recognition of loss on exchange of the Notes Issued in2015 for the Exchange Notes

Loss on sales of cryptocurrency-(18,890) Loss arising from sales of all bitcoins held by Fortress. The
amount of loss represents the difference between the sales
price of bitcoins and their fair value that was recognized in
the consolidated statement of financial position at the acquisition date. Excluding the impact of purchase price accounting, Fortress realized a gain on the sale of cryptocurrency of $173 million, which represents the difference between the sales price and its original acquisition cost.

Impairment loss on assets
classified as held for sale

(42,540)-

Loss due to a difference between the valuation of the248,300,000 GungHo Online Entertainment, Inc., sharestendered by the Company in the previous fiscal year at thetender offer price of ¥294 per share and their carrying
amountLoss on loss of control(79,278)-

Loss due to loss of control of SOFTBANK GROUP CAPITAL APAC PTE. LTD. (currently Foxconn Ventures Pte.
Ltd.), which became an equity method associate in the previous fiscal year as a result of a private placement of newsharesNote: See “14. Other non-operating income (loss)” under “(6) Notes to Consolidated Financial Statements” in “4. Consolidated Financial Statements and Primary Notes” for details.

(m) Income before Income Tax
As a result of (d) to (l), income before income tax decreased ¥327,896 million (46.0%) year on year, to ¥384,630 million.

(n) Income Taxes
Income taxes were credited ¥853,182 million (profit), compared with a credit of ¥207,105 million in the previous fiscal
year. This was mainly due to a decline in income taxes of ¥815,059 million at Sprint, which resulted from the enactmentof the U.S. Tax Cuts and Jobs Act in December 2017.
Note: See “6. Income Taxes” under “(6) Notes to Consolidated Financial Statements” in “4. Consolidated Financial Statements andPrimary Notes” for details.

(o) Net Income from Continuing Operations
As a result of (m) and (n), net income from continuing operations increased ¥318,181 million (34.6%) year on year, to¥1,237,812 million.

7

SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2018

Discontinued Operations(p) Net Income from Discontinued Operations
Net income from discontinued operations was not recorded (income of ¥554,799 million in the previous fiscal year). Income after income tax from Supercell Oy of ¥28,246 million and after-tax gain on sale of Supercell shares of ¥526,553
million were recorded in the previous fiscal year. Supercell Oy was excluded from the scope of consolidation on July 29,
2016.

(q) Net Income
As a result of (o) and (p), net income decreased ¥236,618 million (16.0%) year on year, to ¥1,237,812 million.

(r) Net Income Attributable to Owners of the Parent
After deducting net income attributable to non-controlling interests such as those of Sprint and Yahoo Japan Corporationfrom (q), net income attributable to owners of the parent decreased ¥387,331 million (27.2%) year on year, to ¥1,038,977
million.
Of Sprint’s decrease in income taxes of ¥815,059 million described in (n), ¥684,964 million was included in net income
attributable to owners of the parent, corresponding to the Company’s ownership stake in Sprint.

(s) Comprehensive Income
Comprehensive income decreased ¥104,369 million year on year, to ¥1,329,532 million. Of this, comprehensive income
attributable to owners of the parent decreased ¥232,830 million, to ¥1,153,128 million.

8SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2018

b. Results by Segment
The Company’s reportable segments are components of business activities for which decisions on resource allocation andassessment of performance are made. The Company has six reportable segments: Domestic Telecommunications, Sprint,
Yahoo Japan, Distribution, Arm, and SoftBank Vision Fund and Delta Fund. The Company established the SoftBank
Vision Fund and Delta Fund segment during the first quarter.

The main businesses and core companies of each reportable segment are as follows:
Segments

Main businesses

Core companies

Reportable segments
Domestic Telecommu- · Provision of mobile communications services in Japan
SoftBank Corp.
nications· Sale of mobile devices in Japan
Wireless City Planning Inc.
· Provision of broadband services to retail customers in Japan· Provision of telecom services to corporate customers in Japan,such as data communications and fixed-line telephone services
Sprint· Provision of mobile communications services in the U.S.
· Sale and lease of mobile devices and sale of accessories in the
U.S.
· Provision of fixed-line telecommunications services in the U.S.

Sprint Corporation

Yahoo Japan· Internet advertising· e-commerce business· Membership services

Yahoo Japan Corporation
ASKUL Corporation

Distribution· Distribution of mobile devices overseas· Sale of PC software, peripherals, and mobile device accessories
in Japan

Brightstar Corp.
SoftBank Commerce & Service
Corp.

Arm

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

Arm Limited

SoftBank Vision Fundand Delta Fund

· Investment activities by SoftBank Vision Fund and Delta Fund

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

· Alternative investment management business· Fukuoka SoftBank HAWKS-related businesses

Fortress Investment Group LLC
Fukuoka SoftBank HAWKS Corp.

Other

Note: Income and adjusted EBITDA of reportable segments are calculated as follows.
Segments excluding the SoftBank Vision Fund and Delta Fund segment
Segment income = net sales − operating expenses (cost of sales + selling, general and administrative expenses) ± gain and loss fromremeasurement relating to business combination ± other operating income and loss, for each segment
Adjusted EBITDA = segment income (loss) + depreciation and amortization ± other adjustments
SoftBank Vision Fund and Delta Fund segment
Segment income = gain and loss on investments by SoftBank Vision Fund and Delta Fund − operating expenses
Adjusted EBITDA =segment income (loss) + depreciation and amortization ± unrealized gain and loss on valuation of investments ±other adjustments
For historical principal operational data of each segment, their calculation methods, and definitions of terms, see the Data Sheeton the Company’s website at www.softbank.jp/en/corp/irinfo/presentations/.

9SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2018(a) Domestic Telecommunications Segment
1. Up-front investments resulted in segment income decrease, but steady customer base expansion
 Up-front investments in Home Bundle Discount Hikari Set, Giga Monster, Half Price Support, and collaboration with Yahoo Japan Expanded customer base
- Smartphone subscribers increased 1.69 million, and SoftBank Hikari subscribers increased 1.38 million versus the previous fiscal year-end
 Segment income declined 5.1% yoy, to ¥683.0 billion- The Company expects higher revenues and profit5 in the fiscal year ending March 2019 by leveraging the
expanded customer base
2. Free cash flow decreased 9.0% yoy, to ¥511.5 billion
 Stable cash flow generation continues(Millions of yen)

Fiscal year ended March 31
2017
2018
Net sales

ChangeChange %3,193,791

3,229,845

36,054

1.1%

Segment income

719,572

682,996(36,576)(5.1%)

Depreciation and amortization

489,458

499,188

9,730

2.0%

Other adjustments-(4,044)(4,044)-

Adjusted EBITDA

1,209,030

1,178,140(30,890)(2.6%)

Capital expenditures(acceptance basis)

320,579

370,387

49,808

15.5%

Free cash flow

561,816

511,530(50,286)(9.0%)

619,646554,732(64,914)(10.5%)

Reference:
Adjusted free cash flow(see note below)

Note: Proceeds from borrowings through the securitization of handset installment sales receivables are added to free cash flow, andrepayments of such borrowings are deducted from free cash flow. Due to the introduction of 48 monthly installment sales for handsets, installment sales receivables (working capital) have increased. The Company is aiming to achieve stable cash flow generation
through the securitization of said installment sales receivables.

OVERVIEW
As Japan’s telecommunications market approaches maturity, the Domestic Telecommunications segment is working tostrengthen the foundation for medium- to long-term earnings growth. Specifically, it is working to increase the numberof smartphone and broadband subscribers, and use the operational assets of telecommunications services to foster andexpand new businesses under the Beyond Carrier strategy. At the same time, the segment is seeking to generate stable
free cash flow.
Main Initiatives
 Expand sales of Home Bundle Discount Hikari Set- Provide a discount on a smartphone and broadband bundle subscription

5

The Company plans to apply the new revenue recognition standard (IFRS15) from the fiscal year ending March 2019. However, the impact of thisapplication is still being calculated. Comparisons of results of operations for the fiscal year and the forecast of results of operations for the fiscal year
ending March 2019 are based on the current revenue recognition standard (IAS18).

10

SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2018

 Promote SoftBank brand differentiation strategy- High-volume flat-rate data plans Giga Monster (20 GB) and Ultra Giga Monster (50 GB)- Half Price Support that effectively enables the purchase of smartphones at half price Expand sales of sister brand Y!mobile proactively
 Advance capital and operational tie-up with LINE MOBILE Corporation (became a consolidated subsidiary on April
2, 2018)
 Collaborate with Yahoo Japan Corporation focusing on e-commerce Expand business domain: Develop new businesses through the establishment of joint ventures or capital and operational tie-ups with the Company’s investees- Participate in domestic operations of WeWork Companies Inc. through a joint venture with the company- Provide cloud services through a joint venture with Alibaba- Expand and improve security services for corporations through establishment of a joint venture with Cybereason Inc.
- Participate in the FinTech field through the establishment of joint venture with Mizuho Bank, Ltd.
- Establish an operational tie-up in the RPA6 field with RPA Holdings, Inc.

FINANCIAL RESULTS(Millions of yen)
Fiscal year ended March 31
2017
2018
Telecom service revenue

ChangeChange %2,423,105

2,406,613(16,492)(0.7%)

Mobile communications

1,886,640

1,811,688(74,952)(4.0%)

7

Telecom

1,657,629

1,583,022(74,607)(4.5%)

8229,011

228,666(345)(0.2%)

268,954
267,511

324,913
270,01255,959
2,501

20.8%
0.9%

770,686

823,232

52,5466.8%

3,193,791

3,229,845

36,0541.1%

Service

Broadband
Fixed-line telecommunications
Product and other sales
Total net sales

Net sales increased ¥36,054 million (1.1%) year on year, to ¥3,229,845 million. Of this, telecom service revenue
decreased ¥16,492 million (0.7%), to ¥2,406,613 million, and product and other sales increased ¥52,546 million (6.8%),
to ¥823,232 million.
The decrease of telecom service revenue is mainly due to a ¥74,952 million (4.0%) year-on-year decrease in mobile
communications. The Domestic Telecommunications segment marked the fiscal year as a period to carry out up-front
investments, especially placing a priority on expanding its customer base by increasing the number of smartphone and
SoftBank Hikari subscribers. As a result, revenue from mobile communications declined mainly due to the impact of
discounts offered through the promotions such as Home Bundle Discount Hikari Set, high-volume flat-rate data plans,and Half Price Support.

6

Robotic Process Automation (use of software robots for process automation)
Telecom revenue of mobile communications services, etc., under the SoftBank and Y!mobile brands
8
Device warranty service revenue, content-related revenues, advertising revenues, etc.
711SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2018

On the other hand, the customer base is steadily expanding as planned, driven by continued improvement in churnrate and effective customer acquisition. The number of smartphone and SoftBank Hikari subscribers increased 1.69
million and 1.38 million, respectively, compared with the previous fiscal year. The Company expects to increase telecom
service revenue in the fiscal year ending March 2019 by leveraging the growing customer base.5

Segment income decreased ¥36,576 million (5.1%) year on year, to ¥682,996 million. This was primarily due to thedecline in revenue from mobile communications, as previously mentioned.
The major breakdown of operating expense (cost of sales and selling, general and administrative expenses) year-onyear increases of ¥76,674 million (3.1%) is as follows.

Primary yoy increase/decrease components

Key reasons for increase/decrease

Increase in telecommunications network charges¥29,039 million, 11.6%

Increase in the cost of sales of broadband services following
the rise in Softbank Hikari subscribers

Increase in cost of products¥23,217 million, 3.9%

Rise in the average shipping price of smartphones

Increase in usage fees for content and other services¥11,130 million, 38.2%

Start of provision of Yahoo! Premium9 to smartphone customers, and growth in users of optional services for SoftBank
HikariAcceleration of the depreciation of certain equipment aheadof the termination of 3G services on 1.7 GHz in March 2018
due to the expected deployment of LTE in the future

Increase in depreciation and amortization¥9,730 million, 2.0%
Decrease in sales commission fees¥(5,132) million, (1.5%)

Decline in average sales commission fees for smartphones

Adjusted EBITDA decreased ¥30,890 million (2.6%) year on year, to ¥1,178,140 million.
Capital expenditures (acceptance basis) increased ¥49,808 million (15.5%) year on year, to ¥370,387 million, due tothe expansion of service areas and improvement in quality for LTE network.
Free cash flow decreased ¥50,286 million (9.0%) year on year, to ¥511,530 million, mainly due to an increase inmobile device inventories, the decrease in adjusted EBITDA, and an increase in the amount of income taxes paid. The
amount of income taxes paid increased primarily because loss carryforwards fully utilized in the fiscal year ended March
2016 reduced the amount of income taxes paid in the fiscal year ended March 2017. The loss carryforwards were exhausted in the fiscal year ended March 2016.

9

An offering that allows smartphone subscribers an unlimited use of special offers without additional charges under Yahoo! Premium membershipservice, which is usually provided at a monthly charge of ¥462 by Yahoo Japan Corporation.

12

SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2018

Forecast for the Fiscal Year Ending March 2019
・ Higher revenues and profit (see note below)
・ Adjusted free cash flow: Minimum ¥500 billion
Note: The Company plans to apply the new revenue recognition standard (IFRS15) from the fiscal year ending March 2019. However,
the impact of this application is still being calculated. Comparisons of results of operations for the fiscal year and the forecast of
results of operations for the fiscal year ending March 2019 are based on the current revenue recognition standard (IAS18).

Reference: Impact of the Half Price Support program and 48 monthly installment sales
The Half Price Support program, which was launched in September 2017, enables customers to purchase eligible
smartphones in 48 monthly installments, with the remaining monthly payments waived if the customer trades in theirused handset to upgrade to a designated new model after 24 monthly installments.
Revenues
Negative impact: The estimated waiver amount of installment payments less the estimated trade-in value of handsets isdeducted from telecom revenue in the contract months. The impact is not included in the calculation of ARPU.
Positive impact: The monthly discount (negative impact on telecom revenue) from the 48-month installment payment
program is less than the discount from the 24-month installment payment program.
Cash flow from operating activities
Negative impact: The amount of handset payment received each month from the 48-month installment payment programis less than that from the 24-month installment payment program.
Positive impact: The monthly discount (negative impact on telecom revenue) from the 48-month installment payment
program is less than the discount from the 24-month installment payment program.

OPERATIONS
Mobile Communications Service
Subscribers (Main Subscribers10)(Thousands)

Cumulative subscribers

March 31, 2018

Change from March 31, 201733,175

775

Cumulative subscribers increased from the previous fiscal year-end due to smartphone net additions of 1,691,000.11
Regarding smartphones, the number of Y!mobile subscribers continued to grow steadily, while SoftBank subscribers also
grew due to a successful promotion encouraging feature phone users to switch to smartphones. In addition, tablets contributed to net additions. However, subscribers to feature phones and mobile data communications devices declined
from the previous fiscal year-end. As for mobile data communications devices, a decrease in subscribers reflected thetermination of 3G service on 1.7 GHz as well as a decline in demand from customers with both smartphone and data
device subscription due to the introduction of Giga Monster for smartphones.

10

The number of main subscribers includes subscribers to the Wireless Home Phone service. Number of units sold, ARPU, and churn rate are calculated
and presented excluding this service.
11
Net addition of cumulative smartphone subscribers, including device upgrades.

13SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2018

Cumulative subscribers at the fiscal year-end included 265,000 subscribers to Wireless Home Phone, a new homephone voice calling service using the mobile network, which was launched in July 2017.

Home Bundle Discount Hikari Set Applications(Thousands)

March 31, 2018

Change fromMarch 31, 2017

Mobile communications service

8,148

2,118

Broadband service

3,887

983

Number of Units Sold (Main Subscribers)(Thousands)

Fiscal year ended
March 31, 2018

YoY Change

Number of units sold11,056(23)

New subscriptions

5,050

122

Device upgrades

6,006

(145)

The number of units sold for mobile devices of main subscribers decreased year on year, reflecting a decrease in thenumber of feature phones and mobile data communications devices sold, despite an increase in sales of smartphones,
due to the reasons described above.

ARPU (Main Subscribers)
Fiscal year ended
March 31, 2018

YoY Change¥4,350¥(150)

Telecom ARPU

¥3,800¥(150)

Service ARPU

¥560

¥0

Total ARPU

Total ARPU declined year on year, mainly due to the dilutive impact of an increased proportion of Y!mobile smartphones,
which have a lower service charge. The increase of applications for Home Bundle Discount Hikari Set within the cumulative subscriber base also lowered total ARPU by increasing the discount amount in telecom ARPU.
However, on a sequential basis, the discount amount in telecom ARPU for the Home Bundle Discount Hikari Set has
started to decrease since the three-month period ended December 31, 2017 (the “third quarter”).

Churn Rate (Main Subscribers)
Fiscal year ended
March 31, 2018

YoY Change

Phone churn rate

0.86%

0.03 pp improvement

Churn rate

1.22%

0.02 pp improvement

14SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2018

The phone churn rate improved year on year, reflecting improved churn rates for both feature phones and smartphones.
The improvement in the feature phone churn rate reflected a decline in deactivations resulting from a successful promotion encouraging feature phone users to switch to smartphones. The improvement in the smartphone churn rate is dueto the expansion of Home Bundle Discount Hikari Set.

Broadband Service
Subscribers(Thousands)

March 31, 2018

Change fromMarch 31, 2017

Cumulative subscribers

7,039

894

SoftBank Hikari

4,974

1,382

The number of broadband service subscribers increased during the fiscal year, led by SoftBank Hikari. The proactive
marketing of the Home Bundle Discount Hikari Set to smartphone customers was the main contributing factor to thisincrease.

15

SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2018(b) Sprint Segment
1. Record-high segment income with progress in cost reductions
2. Postpaid phone net additions for the 11th consecutive quarter
3. Planning to increase network cash capex for further network improvement(Millions of yen)

Net sales

Fiscal year ended March 31
2017
2018

ChangeChange %3,623,375

3,601,961(21,414)(0.6%)

Segment income

186,423

279,283

92,86049.8%

Depreciation and amortization

885,845953,820

67,975

7.7%

Other adjustments12

7,371(5,762)(13,133)-

Adjusted EBITDA

1,079,639

1,227,341

147,702

13.7%

U.S. dollar-based results (IFRSs)
Net sales
Cost of sales, and selling, general and administrative expenses(Millions of U.S. dollars)

33,34732,406(941)(2.8%)(31,083)(29,617)

1,466

4.7%

(536)

(296)

240

-

Gain on spectrum license exchange

354

479

125

-

Litigation

(37)

356

393

-

Loss on disposal of property, plant and equipment

(512)

(860)

(348)

-

Gain (loss) on contract termination

(140)

(224)

(84)

-

Others

(201)

(47)

154

-

Segment income

1,728

2,493

765

44.3%

Depreciation and amortization

Other operating income (loss)

8,150

8,584

434

5.3%

Other adjustments12

53

(37)

(90)

-

Adjusted EBITDA

9,931

11,040

1,109

11.2%

Reference: Disclosed by Sprint (US GAAP)
Network capital expenditures (cash basis)(Millions of U.S. dollars)

Adjusted free cash flow

1,950

3,319

1,369

70.2%

607

945

338

55.7%

OVERVIEW
Sprint continues to aim to expand its net sales by increasing the number of postpaid and prepaid phone subscribers andstabilize their ARPU. To achieve this goal, Sprint has continued its effort to further improve network quality and increasecustomer value by leveraging its ample spectrum holdings. In the fiscal year ending March 2019, Sprint expects tofurther increase network cash capital expenditure for improving its network quality. At the same time, Sprint continues
to reduce costs by increasing the operational efficiency.

12

Primary components include gain/loss from non-recurring factors, such as gain from spectrum license exchanges and income and loss on contract
termination among items included in other operating income and loss, and negative impacts from hurricanes included in net sales and cost of sales
and selling, general and administrative expenses.

16SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2018

FINANCIAL RESULTS
Results in U.S. dollars
Net sales decreased by $941 million (2.8%) year on year to $32,406 million. A decline in telecom service revenue
resulted from the introduction of sales promotions to acquire new customers and a change in the device insurance service.
This was partially offset by an increase in equipment rental revenue.

Segment income increased $765 million (44.3%) year on year, to $2,493 million. Operating expenses (cost of sales
and selling, general and administrative expenses) decreased $1,466 million (4.7%) year on year due to a decline in
expenses, mainly relating to the network and the change in the device insurance service, more than offsetting the decrease in net sales. In addition, other operating loss improved $240 million year on year.
Within other operating loss, loss on contract termination totaling $229 million was recorded in the fourth quarter,
when the contract cancellation was determined. Furthermore, under US GAAP, expenses are recorded in accordancewith the actual decommissioning of equipment. As a result, under IFRSs, operating loss of $115 million was recorded,
while under US GAAP, operating income of $236 million was recorded.

Adjusted EBITDA increased $1,109 million (11.2%) year on year, to $11,040 million.
Adjusted free cash flow increased $338 million (55.7%) year on year, to $945 million (disclosed by Sprint, US
GAAP). The increase reflected an increase in net cash provided by operating activities, despite an increase in expenditures for the acquisition of rental devices and telecommunications network equipment. Going forward, in order to differentiate itself from other operators, Sprint will invest more aggressively in its network and leverage its ample spectrum
holdings while building new cell sites to expand its coverage footprint.

Results in yen
In yen terms, net sales decreased ¥21,414 million (0.6%) year on year, to ¥3,601,961 million, and segment income
increased ¥92,860 million (49.8%) year on year, to ¥279,283 million. Adjusted EBITDA also increased ¥147,702 million(13.7%) year on year, to ¥1,227,341 million.

17

SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2018

OPERATIONS
Cumulative Subscribers13 14 15(Thousands)

March 31, 2018

Change fromMarch 31, 201732,119543

26,813734

Prepaid

8,989

301

Wholesale and affiliate

13,517

142

Total

54,625986

Postpaid(incl.) Phone

Net Additions15 (Excluding Special Factors14)(Thousands)

Three months ended
March 31, 2018

YoY Change

39

157

Postpaid

55

13Prepaid(incl.) Phone

170

(25)

Wholesale and affiliate

(165)

(456)

44

(324)

Total

Postpaid phone subscriber net additions were subdued at 55,000. New acquisitions increased, driven by various sales
promotion measures, but were partially offset by an increase in deactivations.

13

Sprint is no longer reporting Lifeline program subscribers due to recent regulatory changes resulting in tighter program restrictions. Sprint has excluded
them from its disclosure of the number of prepaid and wholesale and affiliate subscribers from the first quarter. Past figures have been retrospectively
revised. The Lifeline program is a program whereby carriers in the U.S. receive a subsidy from a government fund to provide discounted services to
low-income subscribers.
14
Cumulative subscribers are impacted by the following special factors; however, these are not included in net additions (losses).
Factor 1: In May 2016, Sprint’s affiliate company acquired another operator. An affiliate company refers to a local wireless operator that sells andprovides Sprint-branded services and products with its own self-operated telecom network while paying Sprint for brand and spectrum usage. This
resulted in adjustments to subscriber numbers that continued to occur during the fiscal year.
Factor 2: During the first quarter, 2,000 Wi-Fi connections were excluded from the postpaid subscriber base.
Factor 3: During the three-month period ended September 30, 2017, one of the prepaid data plans was discontinued. Accordingly, 49,000 prepaid
subscribers to the plan were excluded from the prepaid subscriber base
Factor 4: During the third quarter, Sprint established a joint venture with PRWireless HoldCo, LLC. As a result, 169,000 prepaid subscribers wereadded.
15
During the fiscal year, Sprint introduced a non-Sprint branded postpaid plan offering allowing prepaid customers to purchase a device under its installment billing program. As a result of this extension of credit, approximately 167,000 prepaid subscribers were migrated from the prepaid subscriberbase into the postpaid subscriber base during the fourth quarter. Furthermore, net additions of postpaid subscribers and postpaid phone subscribers forthe quarter included 44,000 such net migrations each. The historical numbers were not restated.

18

SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2018

Churn Rate16 (Postpaid)
Three months ended
March 31, 2018

YoY Change

Postpaid phone churn rate

1.68%

0.10 pp deterioration

Postpaid churn rate

1.78%

0.03 pp deterioration

The postpaid phone churn rate deteriorated due to the company’s decision to shift its focus to selectively manage both
higher ARPU customers and increasing customers rolling off device commitments, in order to maximize the net present
value of the base. Introduction of unlimited data plans by other carriers in February 2017, which has followed Sprint,
also gave an adverse impact.

ABPU (Postpaid Phone)Three months ended
March 31, 2018

YoY Change

ARPU$50.44$(3.66)

Average equipment billings per user

$18.07$3.51

Postpaid phone ABPU

$68.51$(0.15)

Postpaid phone ABPU was relatively flat and ARPU declined due to the increased utilization of low-rate plans.

More information about Sprint’s US GAAP-based financial results and business operations is available on the investor
relations section of its website at investors.sprint.com/.

(c) Yahoo Japan Segment(Millions of yen)

Fiscal year ended March 31
2017
2018

ChangeChange %Net sales

853,458

884,40230,944

3.6%

Segment income

189,819

179,290(10,529)(5.5%)

Depreciation and amortization
Gain from remeasurement
relating to business combination

38,97345,193

6,220

16.0%

(19)

(372)

(353)

-

Other adjustments

10,736(9,692)(20,428)-

Adjusted EBITDA

239,509214,419(25,090)(10.5%)

More information about Yahoo Japan Corporation’s financial results and business operations is available on the investor
relations section of its website at about.yahoo.co.jp/ir/en/.

16

In the first quarter, Sprint changed the definition of certain gross additions and deactivation for postpaid subscribers. A newly acquired customer who
leaves shortly after activation was previously counted as a deactivation but is now counted as a deduction to gross additions. This change has no impact
on net additions but resulted in lower gross additions and lower deactivations by an equal amount in the quarter.

19

SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2018(d) Distribution Segment(Millions of yen)

Fiscal year ended March 31
2017
2018
Net sales
Segment loss

ChangeChange %1,295,374

1,419,319

123,945

9.6%(10,047)(31,018)(20,971)-

Depreciation and amortization

7,237

6,695

(542)

(7.5%)

Other adjustments

30,26050,497

20,237-

Adjusted EBITDA

27,45026,174(1,276)(4.6%)

Impairment losses totaling ¥50,497 million were recorded on Brightstar’s goodwill, intangible assets, and property, plantand equipment as their recoverable amounts fell below their carrying amounts as a result of a revision to Brightstar’s
business plan during the fiscal year (impairment loss on goodwill of ¥30,260 million was recognized in the previous
fiscal year). This further deteriorated segment loss by ¥20,971 million year on year, resulting in a loss of ¥31,018 million
for the fiscal year. Meanwhile, results of operations of SoftBank Commerce & Service Corp. have been solid, mainly
due to a contribution from sales of PCs and servers to corporate customers.

(e) Arm Segment
1. U.S. dollar-based revenue increased 13% yoy in the fourth quarter- Solid adoption of Arm technology continued in target markets of mobile, networking, servers, and IoT
2. Continued reinforcement of R&D capability- Head count increased 1,034 (21%) from the previous fiscal year-end(Millions of yen)

Fiscal year ended March 31
2018
2017

ChangeChange %Net sales

112,902202,344

89,442

79.2%

Segment income (loss)

12,919(31,380)(44,299)-

Depreciation and amortization
Gain from remeasurement
relating to business combination

32,52362,32429,801

91.6%(18,168)-

18,168-Other adjustments

25,780-(25,780)-

Adjusted EBITDA

53,05430,944(22,110)(41.7%)

Notes:
1. The Arm segment reflects Arm’s results of operations since September 6, 2016.
2. Depreciation and amortization includes amortization expenses of ¥29,379 million for the previous fiscal year and ¥54,569 million for the fiscal year, which were related to intangible assets recognized in the purchase price allocation at the time of theacquisition 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 the acquisition, Arm has been accelerating investment inresearch and development by hiring more engineers. With the expansion of its engineering capability, Arm intends todevelop new technologies faster, with a focus on artificial intelligence (AI), computer vision, and augmented reality.
Arm is also investing in creating new revenue streams from adjacent markets, especially in the Internet of Things (IoT).

20

SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2018

In February 2018, Arm announced a new suite of technology for AI including new highly scalable processors that will
deliver enhanced machine learning and neural network functionality. The new Arm AI technology will be available inmid-2018.
Net sales of the segment comprise of (i) licenses to Arm technology, (ii) royalties arising from the resulting sale oflicensees’ products based on Arm technology, and (iii) revenues from the sale of software tools.

FINANCIAL RESULTS
Net sales increased ¥89,442 million (79.2%) year on year, to ¥202,344 million. The main factor behind the increase wasthat Arm’s results were reflected only since September 6, 2016 to March 31, 2017 in the previous fiscal year, while its
results were reflected for the full twelve months in the fiscal year.
Segment loss was ¥31,380 million, a deterioration of ¥44,299 million from the same period of the previous fiscal year.
During the fiscal year, Arm increased the number of its employees, mainly engineers, by a net 1,034 people, up 21%
overall from the previous fiscal year-end, as it continues to strengthen its R&D capability. Arm has also been enhancing
its employee compensation system, including the start of a new performance-linked incentive program. Operating expenses in the fiscal year also included ¥54,569 million in amortization expenses recorded for intangible assets recognizedin the purchase price allocation for the Arm acquisition.
Adjusted EBITDA was ¥30,944 million, a decrease of ¥22,110 million (41.7%) year on year.

Reference: Net sales in U.S. dollars
Net sales in this section are presented in U.S.-dollar terms as Arm’s revenue is primarily U.S. dollar-based.
(Millions of U.S. dollars)

Fiscal year ended March 2017
Q1
Q2
Q3
Q4
Full year
Pro forma
Pro forma

Q1

Fiscal year ended March 2018
Q2
Q3
Q4 Full year

Technology licensing

161

89

229

122

601

149

123

190

156

618

Technology royalties

228

240

248

258

974

250

271

297

269

1,087

Software and services

30

24

31

29

114

29

28

33

36

126

Total net sales

419

353

508

409

1,689

428

422

520

461

1,831

Note: Pro forma includes the periods prior to the acquisition of Arm by the Company on September 5, 2016.

Net sales for the fourth quarter increased 13% year on year to $461 million. Technology licensing revenue in the fourth
quarter was up 28% year on year to $156 million, although down 18% from the prior quarter. As Arm signs a small
number of high-value deals in most quarters along with a larger number of smaller deals, technology licensing revenue
fluctuates from quarter to quarter in accordance with the number of high-value deals concluded. For the full-year, technology licensing revenue was $618 million, up 3% year-on-year from the previous fiscal year (April 1, 2016 to March
31, 2017 on a pro forma basis including the periods prior to the acquisition of Arm by the Company).

21

SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2018

OPERATIONS
Licensing
Licenses signed
January 1 to March 31, 2018

Cumulative number oflicenses signed
March 31, 2018

Classic (Arm7, Arm9, Arm11)-

499

Cortex-A

12334

Cortex-R

2

94

Cortex-M

10

482

Mali

2

168

Number of processor licenses signed

26

1,577

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

During the fourth quarter, Arm signed 26 processor licenses, reflecting the ongoing demand for Arm’s latest technology.
Of the customers signing licenses, nine were new customers purchasing their very first Arm processor license. The
customers who signed licenses with Arm in the fourth quarter intend to use Arm technology in a very broad range ofend markets, including smartphones and laptops, AI chips for cloud applications, autonomous drones, servers, and networking equipment.

Royalty Units
The following analysis is based on the actual shipments of royalty units (chips incorporating Arm technology) by Arm
licensees for the three-month period ended December 31, 2017 as reported by licensees in royalty reports. Arm’s licensees report their actual shipments of royalty units one quarter in arrears; therefore, the current quarter’s royalty unit
analysis is based on chips shipped in the prior quarter. In contrast, royalty revenues are accrued in the same quarter thechips are shipped, based on estimates.
2016
Oct 1 toDec 31

Jan 1 toMar 31

Apr 1 toJun 30Jul 1 toSep 302017
Oct 1 toDec 31

5.1 billion

4.7 billion

5.1 billion

5.7 billion

5.8 billion

Growth rate (yoy)Breakdown by processor family

24%

28%

25%

17%

14%

Classic (Arm7, Arm9, Arm11)

19%

17%

18%

17%

Cortex-A

22%

22%

20%

17%

16%
19%

Cortex-R

7%

8%

9%

7%

7%

Cortex-M

52%

53%

53%

59%

58%

Royalty units as reported byArm’s licensees

The semiconductor industry experiences some seasonality due to OEMs buying an increased number of chips particularly from July to December for consumer products sold over the Christmas and Chinese New Year shopping seasons.
Arm is gaining share and thus grows faster than the overall industry; however, being particularly exposed to consumer

22

SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2018

electronics markets, Arm can also be impacted by the industry’s seasonality. As a result, unit shipments usually growthroughout the year, although unit shipments in the three months ending March 31 can be lower than the prior quarter.
Arm’s licensees reported shipments of 5.8 billion Arm-based chips for the three-month period ended December 31,
2017. This reflects normal seasonality in terms of growth versus the previous quarter, up 2%, and strong growth of 14%
over the same period of the previous fiscal year reflecting strong demand for Arm-based chips.
More information about Arm, its business and its technology can be found on the investor relations section of Arm’s website
at www.arm.com/company/investors.

23

SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2018(f) SoftBank Vision Fund and Delta Fund Segment
1. Segment income of ¥303.0 billion, driven by a valuation gain from a rise in NVIDIA share price
2. $29.7 billion17 invested to date in technology companies, including NVIDIA, Arm, and WeWork
3. Total committed capital of $97.7 billion
OVERVIEWThe Company established the SoftBank Vision Fund and Delta Fund segment as a new reportable segment during thefirst quarter upon the first major closing of SoftBank Vision Fund on May 20, 2017. SoftBank Vision Fund aims toinvest in companies across a wide range of technology sectors.

Outline of Funds in the Segment
As of March 31, 2018
SoftBank Vision Fund

Delta Fund

Major limited partnership

SoftBank Vision Fund L.P.

SB Delta Fund (Jersey) L.P.

Total committed capital$91.7 billion *1$6.0 billion *1

SoftBank Group Corp.: $28.1 billion *2
Third-party investors: $63.6 billion
Limited partners

General partners*1

SoftBank Group Corp.
Public Investment Fund
Mubadala Investment Company
Apple
Foxconn Technology Group
Qualcomm Incorporated
Sharp Corporation
SVF GP (Jersey) Limited(The Company’s wholly owned overseas
subsidiary)

SoftBank Group Corp.: $4.4 billion
Third-party investors: $1.6 billion *1
SoftBank Group Corp.
Mubadala Investment Company

SB Delta Fund GP (Jersey) Limited(The Company’s wholly owned overseas
subsidiary)

Advisory company

The Company’s wholly owned subsidiaries (in Japan and the U.S.)

Management company

The Company’s wholly owned subsidiary (in the U.K.)

Investment period

Five years from the final closing*3 of SoftBank Vision Fund (in principle)

Minimum fund life

Twelve years from the final closing*3 of SoftBank Vision Fund (in principle)

Notes:
1. A portion of the capital committed by Mubadala Investment Company in both SoftBank Vision Fund and Delta Fund has beencommitted in consideration of the total capital committed for both separate funds; hence, the total committed capital and remaining
committed capital for each separate fund will change according to the status of contribution by Mubadala Investment Company ineach fund.
2. The amount includes approximately $8.2 billion of an obligation to be satisfied by using Arm Limited shares.
3. The Company expects the final closing of SoftBank Vision Fund to complete in the three month period ending June 30, 2018. The
first and final closing of Delta Fund was completed on September 27, 2017.

17

This includes the amount of investments made by holding entities that are jointly held by SoftBank Vision Fund and the Company’s subsidiary.

24SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2018

FINANCIAL RESULTS(Millions of yen)

Fiscal year ended March 31
2017
2018
Gain and loss on investments at SoftBank Vision Fund and Delta Fund
Unrealized gain and loss on valuation of investments
Interest and dividend income from investments
Operating expenses-

345,975
6,120(49,114)Segment income-

302,981

Depreciation and amortization
Unrealized loss (gain) on valuation of investments
Other adjustments-

1(345,975)
20,502Adjusted EBITDA-(22,491)

Note: The segment’s results are calculated as follows:
Segment income = gain and loss on investments at SoftBank Vision Fund and Delta Fund - operating expenses
Adjusted EBITDA = segment income (loss) + depreciation and amortization ± unrealized gain and loss on valuation of investments± other adjustments

Segment income was ¥302,981 million due to the recording of unrealized gain on valuation of investments of ¥345,975
million, mainly reflecting an increase in the fair value of NVIDIA shares as a result of a rise in its market price.
Adjusted EBITDA, which is calculated by deducting unrealized gain and loss on valuation of investments and otheradjustments from segment income, was negative ¥22,491 million. Other adjustments represents expenses related to theestablishment of SoftBank Vision Fund and Delta Fund, which was included in operating expenses.
Capital Deployment
As of March 31, 2018
(Billions of U.S. dollars)

Total

The Company

Third-party investors

Committed capital
SoftBank Vision Fund
Delta Fund

91.7 *1
6.0 *1

28.1 *2
4.4

63.6 *1
1.6 *1

Contributions from limited partners*3
SoftBank Vision Fund
Delta Fund

21.2
5.1

6.4
3.7 *414.8
1.4

Remaining committed capital
SoftBank Vision Fund
Delta Fund

70.5
0.9 *5

21.7
0.7

48.8
0.2 *5

Notes:
1. A portion of the capital committed by Mubadala Investment Company in both SoftBank Vision Fund and Delta Fund has beencommitted in consideration of the total capital committed for both separate funds; hence, the total committed capital and remaining
committed capital for each separate fund will change according to the status of contribution by Mubadala Investment Company ineach fund.
2. The amount includes approximately $8.2 billion of an obligation to be satisfied by using Arm Limited shares.
3. The amount excludes the amount that was repaid to limited partners due to investment plan changes and other reasons after thecontribution had been made.
4. The amount includes the value of the investment securities in DiDi acquired by the Company and then transferred to Delta Fund.
The value of this transfer was offset against the amount of the Company's capital obligation to Delta Fund.
5. The remaining committed capital of third-party investors at Delta Fund may be used for SoftBank Vision Fund.

25

SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2018

Investment Status
As of the fiscal year-end, the total acquisition cost and fair value of investments of SoftBank Vision Fund and Delta
Fund was $29.7 billion and $33.0 billion, respectively (see note below). The following are the investees of the respective
funds, as of the fiscal year-end.
Fund Name
SoftBank Vision Fund

Name (in alphabetical order)

Business

Arm Limited

Semiconductor technology designer

Auto1 Group GmbH

Used car wholesaler in Europe

Brain Corporation

AI-based autonomous driving system developer

Fanatics Holdings, Inc.

Online retailer of licensed sports merchandise

Flipkart Limited (Flipkart)

e-commerce

Guardant Health, Inc.

Cancer diagnosis through genomic analysis

HealthKonnect Medical and HealthManaged care platform
Technology Management Company
Limited (Ping An Medical and Healthcare)

Delta Fund

Improbable Worlds Limited

VR/AR development tools

Katerra Inc.

End-to-end design & architecture technology
platform

MapBox Inc.

Geographical information platform

Nauto, Inc.

AI-based safe-driving support services

NVIDIA Corporation

GPU developer

One97 Communications Limited(PayTM)
Oravel Stays Private Limited(OYO Rooms)

Online payment services

OSIsoft LLC

Industrial IoT solutions

Ping An Healthcare and Technology
Company Limited

Online healthcare portal

Plenty United Inc.

Indoor farm plant

Roivant Sciences Ltd.

Biopharmaceutical drug developer

Slack Technologies, Inc.

Business chat tool

Urban Compass, Inc. (Compass)

Real estate big data platform

Vir Biotechnology, Inc.

Pharmaceutical drug development for infectious diseases using AI

Wag Labs, Inc

On-demand dog walking & dog care app

WeWork Companies Inc.
(and its 3 affiliates)

Co-working space services

Zhongan Online P&C Insurance Co., Ltd

Online insurance

Xiaoju Kuaizhi Inc. (DiDi)

Ridesharing services

Hotel booking site

Note: SoftBank Vision Fund made some investments through investment holding entities that are subsidiaries, but not wholly owned
subsidiaries, of SoftBank Vision Fund. Regardless of the ownership percentage of SoftBank Vision Fund, all investments made throughthe investment holding entities are calculated as investments made by SoftBank Vision Fund. Of the fair values of investments by
SoftBank Vision Fund and Delta Fund at the fiscal year-end, the values attributable to shareholders other than SoftBank Vision Fund
was $1.2 billion.

26

SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2018

Investments Transferred from the Company to SoftBank Vision Fund or Delta Fund
There are certain cases in which investments of SoftBank Vision Fund or Delta Fund are made through the Company
transferring its investment (the “Bridge Investments”) to respective funds. The Bridge Investments are transferred to
SoftBank Vision Fund or Delta Fund only if all the necessary approvals by the investment committee of respective funds,
among others, are obtained. The price of the Bridge Investments used for the transfer from the Company to SoftBank
Vision Fund or Delta Fund is based on fair values at the time the Company and respective funds agreed on the transfer.
As of the fiscal year-end, the total acquisition cost and fair value of the investments of SoftBank Vision Fund or Delta
Fund segment, including those agreed to be transferred from the Company out of the Bridge Investments, was $29.8
billion and $33.1 billion, respectively.

27

SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2018

(2) Overview of Financial Position
1. Progress on investments- $29.7 billion invested to date by SoftBank Vision Fund and Delta Fund 18- Aside from the above, the Company invested a total of $12.9 billion (¥1,378.8 billion) in Uber and DiDi19
2. Refinancing and diversified financings excecuted to secure funds for investments with extended periods- Borrowed ¥2,734.0 billion mainly for refinancing of the acquisition funds for Sprint and Arm- Raised $8 billion by using Alibaba shares, $3.35 billion and €2.25 billion through issuance of foreign currency-denominated bonds, and $4.5 billion through issuance of the Hybrid Notes
3. Consolidation of The Japan Net Bank brought ¥818.8 billion in assets and ¥754.9 billion in liabilities on
February 1, 2018

(Millions of yen)March 31, 2017

March 31, 2018

ChangeChange %Total assets

24,634,212

31,180,466

6,546,254

26.6%

Total liabilities

20,164,482

24,907,444

4,742,962

23.5%

Total equity

4,469,730

6,273,022

1,803,292

40.3%

Reference: Exchange rate at the fiscal year-end used for translations
USD / JPY

¥112.19¥106.24¥(5.95)(5.3%)

GBP / JPY

¥140.08¥148.84

¥8.76

6.3%

(a) Current Assets(Millions of yen)March 31, 2017

March 31, 2018

ChangeCash and cash equivalents

2,183,102

3,334,650

1,151,548

Trade and other receivables

2,121,619

2,314,353

192,734

Other financial assets

794,689

519,444(275,245)

Inventories

341,344362,041

20,697

Other current assets

283,221344,374

61,153

Total current assets

5,723,975

6,874,862

1,150,887

Primary components of the change

18
19

Components

Primary changes from the previous fiscal year-end

Cash and cash equivalents

See “(3) Overview of Cash Flows” for details.

Other financial assets

Commercial paper held for short-term investment and time deposits decreased at
Sprint.

This includes the amount of investments made by holding entities that are jointly held by SoftBank Vision Fund and the Company’s subsidiary.
The investments may be offered to SoftBank Vision Fund in the future, subject to applicable consent and regulatory and other approvals.

28

SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2018(b) Non-current Assets(Millions of yen)March 31, 2017

March 31, 2018

Change3,977,254
4,175,464
2,691,818

3,856,847
4,302,553
2,860,738(120,407)
127,089
168,920

6,946,639

6,784,550(162,089)

1,670,799

2,328,617

657,818

Investment securities
Other financial assets
Deferred tax assets
Other non-current assets

1,106,409
445,858
404,994
182,820

2,827,784
2,660,115
676,392
647,514221,232

2,827,784
1,553,706
230,534
242,520
38,412

Total non-current assets

18,910,237

24,305,604

5,395,367

Property, plant and equipment
Goodwill(incl.) Arm
Intangible assets
Investments accounted for using theequity method
Investments from SoftBank Vision
Fund and Delta Fund accounted forusing FVTPL

Primary components of the change
Components

Primary changes from the previous fiscal year-end

Property, plant and equipment

Telecommunications network equipment at SoftBank Corp. decreased due to depreciation exceeding the amount of newly acquired assets.

Goodwill

Goodwill for Arm increased due to the weaker yen against the pound. On the other
hand, goodwill for Brightstar was impaired.

Intangible assets

FCC licenses and others decreased due to a stronger yen against the U.S. dollar.
Meanwhile, the Company newly recognized management contracts of ¥115,333
million with the consolidation of Fortress.

Investments accounted forusing the equity method

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

Investments from SoftBank
Vision Fund and Delta Fund
accounted for using FVTPLSoftBank Vision Fund made investments in WeWork Companies Inc. and Flipkart
Limited, among others, and Delta Fund made investments in DiDi. NVIDIA
shares were reclassified from “Investment securities” upon transfer from theCompany.
NVIDIA shares were reclassified as “Investments from SoftBank Vision Fundand Delta Fund accounted for using FVTPL” upon transfer to SoftBank Vision
Fund. On the other hand, the Company invested a total of $12.9 billion(¥1,378,831 million) in Uber and DiDi, which may be offered to SoftBank Vision
Fund in the future.20

Investment securities

Deferred tax assets

20

Deferred tax assets increased due to recording of a derivative loss in relation to acollar transaction included in a variable prepaid forward contract for Alibaba
shares.

Subject to applicable consent and regulatory and other approvals

29

SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2018(c) Current Liabilities(Millions of yen)March 31, 2017

March 31, 2018

Change2,694,093
1,139,734
505,8023,217,405
1,485,852
771,275

523,312346,118
265,473

Current portion of long-term borrowings

433,983

214,747(219,236)

Current portion of corporate bonds

119,947

399,830

279,883

80,002536,897

100,000
364,245

19,998(172,652)

307,178

164,466(142,712)

219,365
10,354-

190,396
9,383
397,095(28,969)(971)
397,095

Short-term borrowings
Current portion of long-term borrowings
Others

1,017,462

83,952
313,143
970,21383,952
313,143(47,249)

Short-term borrowings
Current portion of long-term borrowings
Lease obligations
Others
Deposits for banking business

161,862
387,349
431,52236,729-102,346
401,349
450,611
15,907684,091(59,516)

Trade and other payables
Other financial liabilities
Income taxes payables
Provisions
Other current liabilities

1,607,453
13,701
256,218
56,362
599,096

40,713
1,816,010
97,887
147,979
65,709658,961(108,239)
9,347
59,865

Total current liabilities

5,226,923

6,728,755

1,501,832

Interest-bearing debt
SoftBank Group Corp.
Short-term borrowings

OthersSprintCurrent portion of long-term borrowings
Current portion of corporate bonds
OthersSoftBank Vision Fund and Delta Fund

Third-party interests in SoftBank Vision Fundand Delta Fund

14,00019,089(20,822)684,091
40,713
208,557
84,186

Primary components of the change
Components

Primary changes from the previous fiscal year-end

Interest-bearing debt

SoftBank Group Corp.:
Short-term borrowings increased mainly through the use of a commitment line, and the current portion of corporate bonds increased due to transfers from non-current liabilities.
Meanwhile, current portion of long-term borrowings decreased due to borrowing mainly forrefinancing of the acquisition funds for Sprint and Arm.
SoftBank Vision Fund and Delta Fund:
Borrowings were made mainly to increase the capital efficiency of investments.
Sprint:Current portion of long-term borrowings decreased, mainly due to repayment of borrowings
utilizing certain network equipment.

Deposits for banking
business

This was newly recognized in conjunction with The Japan Net Bank, which was formerly
an equity method associate, becoming a subsidiary of Yahoo Japan Corporation.

Income taxes payables

The Company paid income taxes, such as those on gains from the sale of Supercell Oy
shares and others, which were recognized and accrued at the previous fiscal year-end.

30

SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2018(d) Non-current Liabilities(Millions of yen)March 31, 2017

March 31, 2018

Change12,164,277
6,378,194
2,133,705
4,244,488
1
4,024,390

13,824,783
7,732,330
3,215,459
4,516,871
3,979,705

1,660,506
1,354,136
1,081,754
272,383(1)(44,685)

Long-term borrowings
Corporate bonds
OthersSoftBank Vision Fund and Delta Fund

1,044,116
2,954,300
25,974-

1,346,576
2,612,178
20,951
101,312302,460(342,122)(5,023)
101,312Long-term borrowings
Others

1,761,693

101,3122,011,436

101,312249,743

199,804

458,244

258,440

Interest-bearing debt
SoftBank Group Corp.21
Long-term borrowings21
Corporate bonds
OthersSprint21

Long-term borrowings
Financial liabilities relating to sale of sharesby variable prepaid forward contract
Lease obligations
OthersThird-party interests in SoftBank Vision Fund andDelta Fund
Derivative financial liabilities
Other financial liabilities
Defined benefit liabilities
Provisions
Deferred tax liabilities
Other non-current liabilities

715,448
787,124
59,317688,332
751,801
113,059(27,116)(35,323)
53,742

254,146
33,083
108,172
138,730
1,941,380
297,771

1,803,966
865,40262,372
100,486
132,139
1,085,626
303,915

1,803,966
611,256
29,289(7,686)(6,591)(855,754)
6,144

Total non-current liabilities

14,937,559

18,178,689

3,241,130

Includes borrowings using Alibaba shares made by wholly owned subsidiary of the Company

31

SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2018

Primary components of the change
Components

Primary changes from the previous fiscal year-end

Interest-bearing debt

SoftBank Group Corp.:· Long-term borrowings increased due to borrowing mainly for refinancing of the acquisition funds for Sprint and Arm, and borrowing of $8 billion (¥842.3 billion) using
Alibaba shares22 made by wholly owned subsidiary.
· Corporate bonds increased due to the issuance of foreign currency-denominatedstraight corporate bonds of $3.35 billion and €2.25 billion (totaling ¥665.8 billion) in
September 2017. This was partially offset by transferring certain straight corporate
bonds to current liabilities as they becoming due within a year.
· On April 3, 2018, SoftBank Group Corp. exchanged the Notes Issued in 2015 for the
Exchange Notes, with bondholders who were willing to make such an exchange. However, the accounting basis of the exchange was considered to be March 22, 2018, theexchange decision date. As a result, the company derecognized the Notes Issued in2015 and recognized the Exchange Notes.
SoftBank Vision Fund and Delta Fund:
Borrowings were made mainly to increase the capital efficiency of investments.
Sprint:Long-term borrowings increased due to spectrum financing. Corporate bonds decreased
due to early redemptions of certain corporate bonds and the transfer of certain straight
corporate bonds to current liabilities as they becoming due within a year.

Third-party interests in
SoftBank Vision Fundand Delta Fund

An amount of equity attributable to the third-party investors in SoftBank Vision Fundand Delta Fund was recorded.

Derivative financial liabilities

Derivative liabilities increased ¥570,191 million due to recording derivative loss in relation to a collar transaction included in a variable prepaid forward contract for Alibaba
shares.
Note: See “(2) Transaction for sale of Alibaba shares by variable prepaid forward contract” under“7. Interest-bearing debt” in “(6) Notes to Consolidated Financial Statements” in “4. Consolidated
Financial Statements and Primary Notes” for details about the transaction for sale of Alibaba
shares by variable prepaid forward contract.

Deferred tax liabilities

Sprint reversed deferred tax liabilities of ¥776,945 million following the enactment of
the U.S. Tax Cuts and Jobs Act in December 2017.
Note: See “6. Income Taxes” under “(6) Notes to Consolidated Financial Statements” in “4. Consolidated Financial Statements and Primary Notes” for details.

22

The borrowings are not guaranteed by SoftBank Group Corp., hence non-recourse to the company.

32

SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2018(e) Equity(Millions of yen)March 31, 2017

March 31, 2018

Change3,586,352

5,184,176

1,597,824

883,378

1,088,846

205,468

4,469,730

6,273,022

1,803,292

14.6%

16.6%

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

Equity attributable to owners of the parent(Millions of yen)March 31, 2017

March 31, 2018

ChangeCommon stock

238,772

238,772-

Capital surplus

245,706

256,768

11,062-496,876

496,876

Retained earnings

2,958,355

3,940,259

981,904

Treasury stock(67,727)(66,458)

1,269

Accumulated other comprehensive income

211,246

317,959

106,713Available-for-sale financial assets

11,98363,70051,717

Cash flow hedges
Exchange differences on translating
foreign operations(44,877)(55,286)(10,409)244,140

309,545

65,405

3,586,352

5,184,176

1,597,824

Other equity instruments

Total equity attributable to owners of the parent

Primary components of the change
Components

Primary changes from the previous fiscal year-end

Other equity instruments

Newly recorded for USD-denominated Undated Subordinated Notes (the “Hybrid Notes”) issued in July 2017 by SoftBank Group Corp. The Hybrid Notes
are classified as equity instruments in accordance with IFRSs.

Retained earnings

Retained earnings increased as the Company recorded net income attributableto owners of the parent of ¥1,038,977 million.

Accumulated other comprehensive income

Although a stronger yen against the U.S. dollar caused a decrease in exchange
differences on translating foreign operations related to Sprint and other entities,
a weaker yen against the pound caused an increase in exchange differences ontranslating foreign operations related to Arm.

33

SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2018(3) Overview of Cash Flows
1. Progress on investments- Payments for acquisition of investments by SoftBank Vision Fund and Delta Fund of ¥2,263.3 billion- Aside from the above, the Company invested a total of $12.9 billion (¥1,378.8 billion) in Uber and DiDi
2. Prolonged funds through refinancing of the acquisition funds for Sprint and Arm- Borrowed ¥2,734.0 billion and repaid ¥2,691.3 billion
3. Diversified financings to secure funds for investment and other purposes- Financed $8 billion by using Alibaba shares- Raised $3.35 billion and €2.25 billion through the issuance of foreign currency-denominated bonds- Raised $4.5 billion through the issuance of the Hybrid Notes(Millions of yen)

Fiscal year ended March 31
2017
2018

ChangeCash flows from operating activities

1,500,728

1,088,623(412,105)

Cash flows from investing activities(4,213,597)(4,484,822)(271,225)

Cash flows from financing activities

2,380,746

4,626,421

2,245,675(a) Cash Flows from Operating Activities
Net cash provided by operating activities decreased ¥412,105 million year on year, mainly due to the Company’s receipt
of a refund of ¥293,489 million in the previous fiscal year for withholding income tax related to dividends among Group
companies. Additionally, income taxes paid increased ¥128,219 million year-on-year due to the payment of income
taxes for the sale of Supercell Oy shares, which was executed in the previous fiscal year.
(b) Cash Flows from Investing Activities
Primary components for the fiscal year

23

Components

Primary details

Outlays for purchase of property, plant andequipment and intangible assets¥(1,064,835) million

Sprint acquired telecommunications network equipment and leased
devices. SoftBank Corp. acquired telecommunications network equipment.

Payments for acquisition of investments¥(1,735,694) million

The Company acquired investment securities. Of these, the investments in Uber and DiDi totaled $12.9 billion (¥1,378,831 million),
which may be offered to SoftBank Vision Fund in the future. 23

Payments for acquisition of investment by
SoftBank Vision Fund and Delta Fund¥(2,263,260) million

This represents the payments for investments acquired by SoftBank
Vision Fund and Delta Fund or agreed to be transferred from the Company. These mainly included investments in WeWork Companies Inc.
and Flipkart Limited by SoftBank Vision Fund and investments in
DiDi by Delta Fund.

Increase from acquisition of control oversubsidiaries¥61,965 million

Consolidation of The Japan Net Bank resulted in proceeds of¥337,224 million, due to recognizing the same amount of cash andcash equivalents that was held by the company on the acquisition date,
while the consolidation was a non-cash transaction. This was partially
offset by a payment of ¥275,259 million for the acquisition of Fortress.

Subject to applicable consent and regulatory and other approvals

34

SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2018(c) Cash Flows from Financing Activities
Primary components for the fiscal year
Component
Proceeds from interest-bearing debt
¥8,547,346 million
Proceeds from borrowings¥7,176,036 million
SoftBank Group Corp.
¥4,761,200 million

OthersPrimary details

SoftBank Group Corp. borrowed ¥2,734.0 billion mainly for refinancing of the acquisition funds for Sprint and Arm. Additionally,
the Company’s wholly owned subsidiary borrowed $8 billion(¥853.6 billion)24 by using Alibaba shares.
· Sprint borrowed ¥774,713 million through spectrum financing.
· SoftBank Corp. borrowed ¥524,346 million through securitization of receivables.

Proceeds from issuance of bonds¥899,079 million
SoftBank Group Corp.
¥665,804 million

SoftBank Group Corp. issued foreign currency-denominatedstraight corporate bonds of $3.35 billion and €2.25 billion.

OthersSprint issued straight corporate bonds of $1.5 billion (¥163,275
billion).

Repayment of interest-bearing debt¥(6,003,188) million
Repayment of borrowings¥(4,988,513) million
SoftBank Group Corp.
¥(3,598,900) million

SoftBank Group Corp. repaid the existing borrowings by conducting borrowings mainly for refinancing the acquisition funds for
Sprint and Arm.

Others· Sprint repaid borrowings of ¥559,992 million.
· SoftBank Corp. repaid borrowings of ¥462,996 million madethrough securitization of receivables.

Redemption of corporate bonds¥(474,975) million
SoftBank Group Corp.
¥(120,000) million
Others24

SoftBank Group Corp. redeemed corporate bonds upon maturity.
Sprint redeemed corporate bonds of ¥354,825 million (including
early redemptions).

Contribution into SoftBank Vision Fund andDelta Fund from third-party investors¥1,967,191 million

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

Distribution/repayment from Softbank Vision
Fund and Delta Fund to third-party investors¥(187,061) million

SoftBank Vision Fund repaid a part of capital to third-party investors due to investment plan changes and other reasons after thecontribution had been made. The fund also made fixed distributions.

Proceeds from issuances of other equity instruments¥496,876 million

SoftBank Group Corp. issued the Hybrid Notes of $4.5 billion. The
Hybrid Notes are classified as equity instruments in accordancewith IFRSs.

The borrowings are not guaranteed by SoftBank Group Corp., hence non-recourse to the company.

35

SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2018

(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.
For a forecast of the Domestic Telecommunications segment in the fiscal year ending March 2019, see “Forecast for the
Fiscal Year Ending March 2019” under “Financial Results” in “(a) Domestic Telecommunications Segment” in “b. Resultsby Segment” in “ (1) Overview of Results of Operations.”

2. Basic Approach to the Selection of Accounting Standards
The Company has adopted International Financial Reporting Standards (“IFRSs”).

36

SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2018

3. Notes to Summary Information(1) Significant Changes in Scope of Consolidation for the Fiscal Year Ended March 31, 2018
(Specified subsidiary (one company) included in the scope of consolidation)
The voting rights ratio in The Japan Net Bank, Limited held by the Company remains the same as before at 41.2% and
the Company does not hold a majority of the voting rights. However, along with a modification of the shareholders
agreement, the Company determined that it has control over The Japan Net bank, Limited by appointing the majority of
The Japan Net Bank, Limited’s directors by Yahoo Japan Corporation, which is a subsidiary of the Company, through a
resolution in an Extraordinary Meeting of the Shareholders’ of The Japan Net Bank, Limited held on February 1, 2018.
The Japan Net Bank, Limited has become a subsidiary of the Company, changing from an associate, through theresolution.
(Specified subsidiary (one company) excluded from the scope of consolidation)
SoftBank Group International GK and SoftBank Group Japan GK conducted an absorption-type merger, with SoftBank
Group International GK as the surviving company, effective on April 24, 2017. As a result of the merger, SoftBank
Group Japan GK was dissolved and excluded from the scope of consolidation.

(2) Changes in Accounting Policies(Changes in accounting policies required by IFRSs)
The following standard was adopted in the fiscal year ended March 31, 2018.
Standard
IAS 7(amendment)Interpretation
Statement of Cash Flows

Outline of the new/revised standard
Requirement for additional disclosure related to changes inliabilities arising from financing activities.

There is no significant impact on the consolidated financial statements due to the adoption of the above standard.

(3) Changes in Accounting Estimates(Assessment of useful lives of property, plant and equipment and intangible assets)
As a result of reviewing the efficiency of communications equipment in SoftBank Corp., it became highly probablethat certain communications equipment will be disposed and removed, and therefore, the useful lives were revised. Dueto this change “Cost of sales” in the consolidated statement of income for the fiscal year ended March 31, 2018
increased by ¥22,712 million.
(Assessment of recoverability of deferred tax assets)
Net operating losses generated in tax years after December 31, 2017 may be carried forward indefinitely due to theenactment of the Tax Cuts and Jobs Act of 2017 (the “Tax Act”) in December 2017 in the U.S. As a result of thereassessment of the recoverability of deferred tax assets in Sprint, certain deductible temporary differences from assets
with indefinite lives, such as FCC licenses, where deferred tax assets were not recognized previously, are likely to be
recoverable and deferred tax assets were recognized (offset by deferred tax liabilities). The details are described in“Note 6. Income taxes” under “4. Consolidated Financial Statements and Primary Notes (6) Notes to Consolidated
Financial Statements.”(Impairment loss on goodwill and non-current assets)
As a result of revising the business plan of Brightstar in the Distribution segment, the recoverable amount of goodwill
and non-current assets was less than its carrying amount and, therefore, an impairment loss was recognized for the
fiscal year ended March 31 2018. The details are described in “Note 11. Other operating loss Note 6” under “4.
Consolidated Financial Statements and Primary Notes (6) Notes to Consolidated Financial Statements.”

37

SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2018

(Write-down of inventories)
As a result of revising the business plan of Sports Live Entertainment Corporation which operates a sports content
distribution business, the net realizable value of inventories was less than its carrying amount and, therefore, awrite-down was recognized for the fiscal year ended March 31 2018. The details are described in “Note 11. Other
operating loss Note 8” under “4. Consolidated Financial Statements and Primary Notes (6) Notes to Consolidated
Financial Statements.”

4. Consolidated Financial Statements and Primary Notes(Definitions of company names and abbreviations used in the consolidated financial statements and primary notes)
Company names and abbreviations used in the 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.
SprintSprint Corporation

Brightstar

Brightstar Global Group Inc.

Arm

Arm Limited*

SoftBank Vision Fund

SoftBank Vision Fund L.P.
SoftBank Vision Fund (AIV M1) L.P.
SoftBank Vision Fund (AIV M2) L.P.
SoftBank Vision Fund (AIV S1) L.P.

Delta FundSB Delta Fund (Jersey) L.P.

Fortress

Fortress Investment Group LLC

Alibaba

Alibaba Group Holding Limited

Note:* In the fourth quarter, the Company reorganized Arm Holdings plc and its subsidiaries. Following this reorganization, Arm
Limited is listed as a principal business entity. SoftBank Group Corp. will use a portion of its Arm Limited shares tosatisfy approximately $8.2 billion out of its total commitment to SoftBank Vision Fund. At the fiscal year-end, SoftBank
Vision Fund held 19.7% stake in Arm Limited. At the time of completion of the commitment by SoftBank Group Corp.
related to Arm Limited shares, SoftBank Vision Fund will hold a 24.99% stake in Arm Limited.

38SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2018

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

As ofMarch 31, 2017
AssetsCurrent assets
Cash and cash equivalents
Trade and other receivables
Other financial assets
Inventories
Other current assets
Total current assets

Non-current assets
Property, plant and equipment
Goodwill
Intangible assets
Investments accounted for using the equity method
Investments from SoftBank Vision Fund and Delta Fund
accounted for using FVTPL
Investment securities
Other financial assets
Deferred tax assets
Other non-current assets
Total non-current assets
Total assets

39

As of
March 31, 2018

2,183,102
2,121,619
794,689
341,344283,2215,723,975

3,334,650
2,314,353
519,444362,041
344,374
6,874,862

3,977,254
4,175,464
6,946,639
1,670,799

3,856,847
4,302,553
6,784,550
2,328,617

1,106,409
445,858
404,994
182,820
18,910,237
24,634,212

2,827,784
2,660,115
676,392
647,514221,232
24,305,604
31,180,466

SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2018

(Millions of yen)

As ofMarch 31, 2017
Liabilities and equity
Current liabilities
Interest-bearing debt
Deposits for banking business
Third-party interests in SoftBank Vision Fundand Delta Fund
Trade and other payables
Other financial liabilities
Income taxes payables
Provisions
Other current liabilities
Total current liabilities

As ofMarch 31, 2018

2,694,093-

3,217,405
684,091

1,607,453
13,701
256,218
56,362
599,096
5,226,923

40,713
1,816,010
97,887
147,979
65,709658,961
6,728,755

12,164,277

13,824,783

Total liabilities

254,146
33,083
108,172
138,730
1,941,380
297,771
14,937,559
20,164,482

1,803,966
865,40262,372
100,486
132,139
1,085,626
303,915
18,178,689
24,907,444

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

238,772
245,706
2,958,355(67,727)
211,246
3,586,352
883,378
4,469,730
24,634,212

238,772
256,768
496,876
3,940,259(66,458)
317,959
5,184,176
1,088,846
6,273,022
31,180,466

Non-current liabilities
Interest-bearing debt
Third-party interests in SoftBank Vision Fundand Delta Fund
Derivative financial liabilities
Other financial liabilities
Defined benefit liabilities
Provisions
Deferred tax liabilities
Other non-current liabilities
Total non-current liabilities

40SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2018

(2) Consolidated Statement of Income and Consolidated Statement of Comprehensive Income
Consolidated Statement of Income(Millions of yen)

Fiscal year ended
March 31, 2017
Continuing operations
Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Gain from remeasurement relating to businesscombination
Other operating loss
Operating income (excluding income from SoftBank
Vision Fund and Delta Fund)
Operating income from SoftBank Vision Fundand Delta Fund
Operating income
Finance cost
Income on equity method investments
Gain on sales of shares of associates
Foreign exchange gain (loss)
Derivative loss
Loss from financial instruments at FVTPL
Change in third-party interests in SoftBank Vision Fundand Delta Fund
Other non-operating income (loss)
Income before income tax
Income taxes
Net income from continuing operations
Discontinued operations
Net income from discontinued operations
Net income
Net income attributable to
Owners of the parent
Non-controlling interests

Earnings per share
Basic earnings per share (yen)Continuing operations
Discontinued operations
Total basic earnings per share
Diluted earnings per share (yen)Continuing operations
Discontinued operations
Total diluted earnings per share

41

Fiscal year ended
March 31, 2018

8,901,004(5,472,238)
3,428,766

9,158,765(5,527,577)
3,631,188(2,277,251)(2,552,664)

18,187372(143,703)(78,076)

1,025,999

1,000,820

1,025,999(467,311)
321,550
238,10353,336(252,815)(160,419)

302,981
1,303,801(516,132)
404,584
1,804(34,518)(630,190)(68)(45,917)712,526
207,105
919,631(160,382)
15,731
384,630
853,182
1,237,812

554,799
1,474,430

1,237,812

1,426,308
48,122
1,474,430

1,038,977
198,835
1,237,812

792.16494.85
1,287.01

933.54933.54781.25494.391,275.64

908.38908.38

SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2018

Consolidated Statement of Comprehensive Income(Millions of yen)

Fiscal year ended
March 31, 2017
Net income
Other comprehensive income, net of tax
Items that will not be reclassified to profit or loss
Remeasurements of defined benefit plan
Total items that will not be reclassified to profit
or loss
Items that may be reclassified subsequently to
profit or loss
Available-for-sale financial assets
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

42

Fiscal year ended
March 31, 2018

1,474,430

1,237,812

12,2008,795

12,200

8,795

5,628
(7,454)29,640(9,682)(20,500)

42,920(30,403)

20,047(52,729)

82,925(40,529)
1,433,901

91,7201,329,532

1,385,958
47,943
1,433,901

1,153,128
176,404
1,329,532

SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2018

(3) Consolidated Statement of Changes in Equity
For the fiscal year ended March 31, 2017
(Millions of yen)
Equity attributable to owners of the parent
Noncontrollinginterests
891,658

Total equity
3,505,271

1,426,308

48,122

1,474,430(40,350)(40,350)(179)(40,529)-(40,350)

1,385,958

47,943

1,433,901(48,042)--(48,042)(43,467)(91,509)-

10,140-(10,140)

-

-

-

-

-

(1,479) (348,170)-(349,649)-(349,649)--(595,195)

595,195

-

-

-

-

-

-

-

-

-

-

2,218

2,218

-

-

-

-

-

-

(25,997)(25,997)

-

1,670

-

-

-

1,670

6,189

7,859

-

(4,236)---(4,236)-(4,236)-(15,360)---(15,360)-(15,360)

-

2,398

-

-

-

2,398

8,087

10,485

-

-

-

-

-

-

(3,253)(3,253)-(15,528)(634,576)

247,025(10,140)(413,219)(56,223)(469,442)

238,772

245,706

2,958,355(67,727)

211,246

3,586,352

883,378

4,469,730

Accumulated

As of April 1, 2016
Comprehensive income
Net income
Other comprehensive
incomeTotal comprehensive
incomeTransactions with owners
and other transactions
Cash dividends
Transfer of accumulated
other comprehensive
income to retained
earnings
Purchase and disposal oftreasury stock
Retirement of treasury
stock
Changes from businesscombination
Changes from loss ofcontrolChanges in interests in
subsidiaries
Changes in associates’interests in theirsubsidiaries
Changes in interests inassociates’ capitalsurplus
Share-based paymenttransactions
Other
Total transactions withowners and othertransactions
As of March 31, 2017

other
Treasury comprehensive
stock
Total
income(314,752)
261,736
2,613,613

Commonstock
238,772

Capitalsurplus261,234

Retainedearnings
2,166,623--

1,426,308

-

-

-

-

-

-

-

-

1,426,308

-

-

-

43

SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2018

For the fiscal year ended March 31, 2018
(Millions of yen)

Equity attributable to owners of the parent
Accumulated

As of April 1, 2017
Comprehensive income
Net income
Other comprehensive
incomeTotal comprehensive income
Transactions with owners andother transactions
Issuance of other equity
instruments
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 theirsubsidiaries
Changes in interests in associates’
capital surplus
Share-based payment transactions
Other
Total transactions with owners
and other transactions
As of March 31, 2018

As of April 1, 2017
Comprehensive income
Net income
Other comprehensive
incomeTotal comprehensive income
Transactions with owners andother transactions
Issuance of other equity
instruments
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 theirsubsidiaries
Changes in interests in associates’
capital surplus
Share-based payment transactions
Other
Total transactions with owners
and other transactions
As of March 31, 2018

Commonstock
238,772

Capitalsurplus245,706-

other
Treasurycomprehensivestock
income(67,727)
211,246-

Retainedearnings
2,958,355--

1,038,977--

1,038,977

-

-

-

-

-

114,151

114,151---

1,038,977-

114,151

1,153,128--

496,876---

496,876---(47,933)--(47,933)---(15,852)--(15,852)

-

-

-

7,438

-

(7,438)

-

-

-

-

(726)

1,269

-

543

-

-

-

-

-

-

-

-

(31,293)

-

-

-

-

(31,293)-(5,133)

-

-

-

-

(5,133)-40,820----40,820

-

6,668
-

-

-

-

-

6,668
-

-

11,062496,876(57,073)

1,269(7,438)444,696

238,772

256,768

496,876

3,940,259(66,458)

317,959

5,184,176

Noncontrollinginterests
883,378

Total equity
4,469,730

198,835

1,237,812(22,431)

91,720176,404

1,329,532-

496,876(30,889)(78,822)-(15,852)

-

-

-

543

52,67352,673(4,410)(35,703)-(5,133)-40,82012,131(441)

18,799(441)

29,064

473,760

1,088,846

6,273,022

Other equity
instruments

44

Total
3,586,352

SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2018

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

Fiscal year ended
March 31, 2017
Cash flows from operating activities
Net income
Depreciation and amortization
Gain from remeasurement relating to business combination
Gain on investments at SoftBank Vision Fundand Delta Fund
Finance cost
Income on equity method investments
Gain on sales of shares of associates

Fiscal year ended
March 31, 2018

1,474,430
1,472,669(18,187)

1,237,812
1,585,873(372)-(352,095)

467,311(321,550)(238,103)

516,132(404,584)(1,804)

Derivative loss

252,815

630,190

Loss from financial instruments at FVTPL
Change in third-party interests in SoftBank Vision Fundand Delta Fund
Foreign exchange (gain) loss and other non-operating(income) loss
Gain on sales of discontinued operations
Income taxes

160,41968-

160,382(9,511)

18,787(636,216)(91,028)(853,182)(275,771)(268,312)
15,871
46,5872,031,424
29,502(519,373)(359,209)
318,384
1,500,728(170,067)(521,000)
173,038(30,003)
1,989,175
31,987(541,011)(487,428)
95,9001,088,623(923,502)(1,064,835)(688,916)(1,735,694)-(2,263,260)

482,128

53,786(3,254,104)

61,965723,544-(503,767)(208,244)

239,730

399,963(638,914)
283,419
66,785(4,213,597)(297,483)
467,708
101,272(4,484,822)

Increase in trade and other receivables
Increase in inventories
Increase in trade and other payables
Other
SubtotalInterest and dividends received
Interest paid
Income taxes paid
Income taxes refunded
Net cash provided by operating activities
Cash flows from investing activities
Purchase of property, plant and equipment, and intangible
assetsPayments for acquisition of investments
Payments for acquisition of investments by SoftBank
Vision Fund and Delta Fund
Proceeds from sales/redemption of investments(Decrease) increase from acquisition of control oversubsidiaries
Increase from loss of control over subsidiaries
Payments for acquisition of marketable securities for
short-term trading
Proceeds from sales/redemption of marketable securities
for short-term trading
Payments into time deposits
Proceeds from withdrawal of time deposits
Other
Net cash used in investing activities

45

SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2018

(Millions of yen)

Fiscal year ended
March 31, 2017
Cash flows from financing activities
Increase (decrease) in short-term interest-bearing debt, net
Proceeds from interest-bearing debt
Repayment of interest-bearing debt
Contributions into SoftBank Vision Fundand Delta Fund from third-party investors
Distribution/repayment from SoftBank Vision Fundand Delta Fund to third-party investors
Proceeds from issuance of other equity instruments
Distribution to owners of other equity instruments
Purchase of treasury stock
Cash dividends paid
Cash dividends paid to non-controlling interests
Other
Net cash provided by financing activities

Fiscal year ended
March 31, 2018

360,216
4,792,530(2,283,067)(40,829)8,547,346(6,003,188)-

1,967,191-(187,061)

Effect of exchange rate changes on cash and cash equivalents(350,857)(46,273)(42,599)(49,204)
2,380,746(54,382)

496,876(15,852)(41)(47,918)(30,285)(59,818)
4,626,421(78,674)(Decrease) increase in cash and cash equivalents(386,505)

1,151,548

Cash and cash equivalents at the beginning of the period
Cash and cash equivalents at the end of the period

2,569,607
2,183,102

2,183,102
3,334,650

46

SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2018(5) Significant Doubt about Going Concern Assumption
There are no applicable items.
(6) Notes to Consolidated Financial Statements
1. Significant accounting policies
The SoftBank Vision Fund completed the initial closing in May 2017. Accordingly, the Company adopted
accounting policies for SoftBank Vision Fund and Delta Fund as follows.
(1) Consolidation of the SoftBank Vision Fund and Delta Fund business by the Company
SoftBank Vision Fund and Delta Fund are Limited Partnerships established by the General Partner which is awholly-owned subsidiary of the Company, and by their form of organization, qualify as structured entities.
SoftBank Vision Fund and Delta Fund are consolidated by the Company for the following reasons.
The various entities comprising SoftBank Vision Fund and Delta Fund make investment decisions through theirrespective Investment Committee, which were established as committees of SB Investment Advisers (UK) Limited(“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” over SoftBank Vision Fund and Delta
Fund. 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 toaffect those returns through its power over the Funds, and therefore, the Company is deemed to have control as
stipulated in IFRS 10 over each Fund.
Inter-company transactions such as management fees and performance fees to SBIA paid or to be paid from
SoftBank Vision Fund and Delta Fund are eliminated in consolidation.

(2) Portfolio company investments made by SoftBank Vision Fund and Delta Fund
a. Investments in subsidiaries
Of the portfolio company investments made by SoftBank Vision Fund, the portfolio companies that theCompany is deemed to control under IFRS 10, are subsidiaries of the Company. Accordingly, their results ofoperations, assets and liabilities are included in the Company’s consolidated financial statements.
Gain and loss on investments in the subsidiaries of the Company, which will be recognized at SoftBank
Vision Fund, are eliminated in consolidation.
b. Investments in associates
Of the portfolio company investments made by SoftBank Vision Fund and Delta Fund, the portfolio
companies over which the Company has significant influence under IAS 28 “Investments in Associates andJoint Ventures”, are associates of the Company.
The investments in associates of the Company made by SoftBank Vision Fund and Delta Fund are accounted
for as financial assets measured at fair value through profit or loss (“financial assets at FVTPL”) in
accordance with IAS 28. 18, and presented as “Investments from SoftBank Vision Fund and Delta Fund
accounted for using FVTPL” in the consolidated statement of financial position. The payments for theseinvestments are presented as “Payments for acquisition of investments by SoftBank Vision Fund and Delta
Fund” under cash flows from investing activities in the consolidated statement of cash flows.
c. Other investments
Investments other than those in subsidiaries or associates of the Company made by the SoftBank Vision
Fund and Delta Fund are accounted for as financial assets at FVTPL. The presentation of these investmentsin the consolidated statement of financial position and the consolidated statement of cash flows are the sameas the above “b. Investments in associates.”

47

SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2018(3) Presentation of the results from the SoftBank Vision Fund and Delta Fund business
Income and loss arising from the SoftBank Vision Fund and Delta Fund business are separated from operating
income and loss arising from other businesses, recognized as a component of operating income, and presented as“Operating income from SoftBank Vision Fund and Delta Fund” in the consolidated statement of income. Gain
and loss arising from “(2) 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 anddividend income from investments, except for gain and loss on investments in subsidiaries) and operating
expenses such as incorporation expenses of entities that comprise SoftBank Vision Fund and Delta Fund,investment research expenses arising from SBIA and other Japan and U.S. advisory companies which support
SBIA, and administrative expenses arising from each entity, are included in “Operating income from SoftBank
Vision Fund and Delta Fund.”(4) Investments made by the Company based on the premise of transferring to SoftBank Vision Fund and Delta Fund
Investments in associates or other investments made by SoftBank Group Corp. or its subsidiaries based on thepremise of transferring to SoftBank Vision Fund and Delta Fund are designated as financial assets at FVTPL. In
cases where the investees are the Company’s subsidiaries and the Company is transferring those investments to
SoftBank Vision Fund, the investments are accounted for in accordance with the above “a. Investments in
subsidiaries” under “(2) Portfolio company investments made by SoftBank Vision Fund and Delta Fund,”regardless of whether the investments are agreed to be transferred.
a. Investments made in the current fiscal year based on the premise of transfer
If the investments are agreed to be transferred from the Company to SoftBank Vision Fund or Delta Fund,and regulatory approval to make the investments by SoftBank Vision Fund or Delta Fund is obtained (suchinvestments, “Agreed Transferable Investments”) as of the end of the current fiscal year, the Company
presents items relevant to those investments as “Investments from SoftBank Vision Fund and Delta Fund
accounted for using FVTPL” in the consolidated statement of financial position, “Operating income from
SoftBank Vision Fund and Delta Fund” in the consolidated statement of income, and “Payments foracquisition of investments by SoftBank Vision Fund and Delta Fund” under cash flows from investing
activities in the consolidated statement of cash flows, as though SoftBank Vision Fund and Delta Fund madethose investments from the date when the Company had initially made the investments.
On the other hand, if the investments have not yet become the Agreed Transferable Investments as of the endof the current fiscal year, the Company presents items relevant to those investments as “Investment securities”
in the consolidated statement of financial position, “Loss from financial instruments at FVTPL (Other
non-operating income (loss))” in the consolidated statement of income, and “Payments for acquisition of
investments” under cash flows from investing activities in the consolidated statement of cash flows.
b. Investments made prior to the current fiscal year based on the premise of transfer
If the investments become the Agreed Transferable Investments in the current fiscal year, the Company
presents items relevant to those investments as “Investments from SoftBank Vision Fund and Delta Fund
accounted for using FVTPL” in the consolidated statement of financial position and “Operating income from
SoftBank Vision Fund and Delta Fund” in the consolidated statement of income for the current fiscal year, as
though the investments were agreed to be transferred at the beginning of the current fiscal year. In such case,corresponding comparative information for the previous fiscal year is presented as “Investment securities” inthe consolidated statement of financial position, “Loss from financial instruments at FVTPL (Other
non-operating income (loss))” in the consolidated statement of income, and “Payments for acquisition of
investments” under cash flows from investing activities in the consolidated statement of cash flows.

48

SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2018

(5) Contribution from Limited Partners to SoftBank Vision Fund and Delta Fund
SoftBank Vision Fund and Delta Fund call capital from their respective limited partners (“Capital Call”).
a. Contribution from Limited Partners other than the Company
The interests attributable to limited partners of SoftBank Vision Fund and Delta Fund other than the
Company (“Third-Party Investors”) are classified as financial liabilities, “Third-party interests in SoftBank
Vision Fund and Delta Fund” in the consolidated statement of financial position, due to the predetermined
finite life (at least 12 years from the final closing) and contractual payment provision to each of the limited
partners at the end of the finite life within SoftBank Vision Fund and Delta Fund’s limited partnershipagreements. The liabilities are classified as “financial liabilities measured at amortized cost” upon initialrecognition. The carrying amounts attributable to Third-Party Investors represent the amounts that would be
distributed in accordance with the limited partnership agreement in a theoretical liquidation scenario at theend of each quarter.
“Third-party interests in SoftBank Vision Fund and Delta Fund” fluctuate due to the results of SoftBank
Vision Fund and Delta Fund in addition to contributions from Third-Party Investors in satisfaction of Capital
Calls, 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 “Changes in third-party interests in
SoftBank Vision Fund and Delta Fund” in the consolidated statement of income.
Contributions from Third-Party Investors to SoftBank Vision Fund and Delta Fund are included in“Contributions into SoftBank Vision Fund and Delta Fund from third-party investors” under cash flows fromfinancing activities in the consolidated statement of cash flows. The distributions and repayments ofinvestments to Third-Party Investors are included in “Distribution/repayment from SoftBank Vision Fundand Delta Fund to third-party investors” under cash flows from financing activities in the consolidated
statement of cash flows.
Uncalled committed capital from Third-Party Investors is not subject to IAS 39, “Financial Instruments:
Recognition and Measurement,” and therefore such amount is not recorded in the consolidated statement offinancial position. Uncalled committed capital from Third-Party Investors for SoftBank Vision Fund andDelta Fund as of March 31, 2018 is $49.0 billion.
b. Contribution from the Company
Contribution from the Company to SoftBank Vision Fund and Delta Fund as a limited partner is eliminatedin consolidation.

49

SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2018

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.
The Company has six reportable segments: the Domestic Telecommunications segment, the Sprint segment, theYahoo Japan segment, the Distribution segment, the Arm segment, and the SoftBank Vision Fund and Delta Fund
segment.
The Domestic Telecommunications segment provides, mainly through SoftBank Corp., mobile communications
services, sale of mobile devices, telecommunication services such as fixed-line telephone and data
communications services for corporate customers, and broadband services for retail customers in Japan.
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 Yahoo Japan segment provides, mainly through Yahoo Japan Corporation, an Internet-based advertisingbusiness, an e-commerce business, and membership services.
The Distribution segment provides, through Brightstar, distribution of mobile devices overseas, and through
SoftBank Commerce & Service Corp., sale of mobile device accessories, PC software, and peripherals in Japan.
The Arm segment provides, through Arm, designs of microprocessor intellectual property and related technology,
and the sale of software tools.
The SoftBank Vision Fund and Delta Fund segment conducts investment activities in a wide range of technology
sectors. The SoftBank Vision Fund and Delta Fund segment was newly established from the three-month period
ended June 30, 2017, due to the completion of the Initial Closing for SoftBank Vision Fund in May 2017. The
segment income of the SoftBank Vision Fund and Delta Fund segment consists of gain and loss arising frominvestments, including subsidiaries, held by SoftBank Vision Fund and Delta Fund or the Agreed Transferable
Investments (gain and loss on investments at SoftBank Vision Fund and Delta Fund), and operating expenses
incurred in SoftBank Vision Fund and Delta Fund, SBIA and advisory companies in the U.S. and Japan.
Information on business segments which are not included in the reportable segments is classified in “Other.”“Other” includes mainly Fortress and the Fukuoka SoftBank HAWKS-related operations.
“Reconciliations” include 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 manages and supervises investment activities in the Internet, communication, and media fields
overseas, are included in corporate general expenses.
(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.
The Company also discloses EBITDA (i.e., segment income and loss after addition of depreciation andamortization) and Adjusted EBITDA (i.e., EBITDA after addition or deduction of unrealized gain and loss on
valuation of investments in SoftBank Vision Fund and Delta Fund and other adjustments (gains are deducted))by each reportable segment. “Other adjustments” are special items, such as acquisition-related costs andimpairment loss mainly included in other operating income and loss.
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 this income andlosses are excluded from segment performance. Discontinued operations are not included.

50

SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2018

For the fiscal year ended March 31, 2017
(Millions of yen)

Reportable segments
Domestic
Telecommunications

Customers
Intersegment

SoftBank
Vision Fundand Delta Fund

Sprint

Yahoo
Japan

Distribution

Arm

3,156,825

3,459,142

841,581

1,228,051

112,901-

8,798,500

36,966

164,233

11,87767,323

1-

280,400

3,193,791

3,623,375

853,458

1,295,374

112,902-

9,078,900

719,572

186,423

189,819(10,047)

12,919-1,098,686

Total

Net sales

Total
Segment income

Reconciliation from segment income to adjusted EBITDA
Segment income
Depreciation andamortization
EBITDA
Gain from remeasurement
relating to businesscombination

719,572

186,423

189,819(10,047)

12,919-1,098,686

489,458

885,845

38,973

7,237

32,523-

1,454,036

1,209,030

1,072,268

228,792(2,810)45,442-2,552,722

-

-

(19)

-

(18,168)-(18,187)

Other adjustments

-

7,371

10,73630,26025,780-74,147

Adjusted EBITDA

1,209,030

1,079,639

239,50927,45053,054-2,608,682(Millions of yen)

Reconciliations

Other

Consolidated

Net sales
Customers

102,504-

Intersegment

25,804(306,204)

-

Total

128,308(306,204)

8,901,004

Segment income(16,573)(56,114)

1,025,999

8,901,004

Reconciliation from segment income to adjusted EBITDA
Segment income
Depreciation andamortization(16,573)(56,114)

1,025,999

EBITDA
Gain from remeasurement
relating to businesscombination

9,984

1,589

1,465,609(6,589)(54,525)

2,491,608

Other adjustments--(18,187)

8,052

8,847

Adjusted EBITDA

1,463

91,046(45,678)

2,564,467

51

SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2018

For the fiscal year ended March 31, 2018
(Millions of yen)

Reportable segments
Domestic
Telecommunications

SoftBank
Vision Fundand Delta Fund

Sprint

Yahoo
Japan

Distribution

Arm3,188,416

3,403,820

866,627

1,360,656

202,338-

41,429198,141

17,77558,663

6-

316,0143,229,845

3,601,961

884,402

1,419,319

202,344-

9,337,871

682,996279,283

179,290(31,018)(31,380)

302,981

1,382,152

Total

Net sales
Customers
Intersegment
Total
Segment income

9,021,857

Reconciliation from segment income to adjusted EBITDA
Segment income
Depreciation andamortization
EBITDA
Gain from remeasurement
relating to businesscombination
Unrealized gain and loss
on valuation of
investments in SoftBank
Vision Fund and Delta
Fund

682,996279,283

179,290(31,018)(31,380)

302,981

1,382,152

499,188953,820

45,193

6,695

62,3241

1,567,221

1,182,184

1,233,103

224,483(24,323)

30,944

302,982

2,949,373

-

-

(372)

-

-

-

(372)

(345,975)

-

-

-

-

-

(345,975)

Other adjustments*(4,044)(5,762)(9,692)50,497-

20,50251,501

Adjusted EBITDA

1,178,140

1,227,341

214,419

26,17430,944(22,491)

2,654,527(Millions of yen)

Reconciliations

Other

Consolidated

Net sales
Customers

136,908-

9,158,765

Intersegment

25,467(341,481)

-

Total

162,375(341,481)

9,158,765

Segment income(36,874)(41,477)

1,303,801

Reconciliation from segment income to adjusted EBITDA
Segment income
Depreciation andamortization(36,874)(41,477)

1,303,801

17,144

1,508

1,585,873

EBITDA
Gain from remeasurement
relating to businesscombination
Unrealized gain and loss
on valuation of
investments in SoftBank
Vision Fund and Delta
Fund(19,730)(39,969)

2,889,674

-

-

(372)

(345,975)--

Other adjustments*

8,712

1,577

61,790Adjusted EBITDA(11,018)(38,392)

2,605,117

Note:*“Other adjustments” in SoftBank Vision Fund and Delta Fund segment represent expenses related to establishment of SoftBank Vision Fundand Delta Fund.

52

SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2018

3. Business combinations
For the fiscal year ended March 31, 2017
(1) Arma. Overview of combination
On July 18, 2016 (GMT), the Company and Arm, located in the United Kingdom, entered into an agreement on
the terms of a recommended all-cash acquisition of the entire issued and to be issued share capital of Arm by theCompany for a total acquisition price of approximately ￡24.0 billion (approximately ¥3.3 trillion) by means ofan English court-sanctioned scheme of arrangement (“Acquisition”). The Acquisition was approved at Arm’s
general meeting of shareholders held on August 30, 2016, and at the English court hearing held on September 1,
2016, and came into effect on September 5, 2016.
As a result of the transaction, Arm became a wholly-owned subsidiary of the Company.
b. Purpose of acquisition
The Company believes Arm is one of the world’s leading technology companies, with strong capabilities in
global semiconductor intellectual property and the “Internet of Things,” and a proven track record of innovation.
The board and management of the Company believe that the acquisition of Arm by the Company will deliver thefollowing benefits:
・Support and accelerate Arm’s position as the global leader in intellectual property licensing and R&D
outsourcing for semiconductor companies
The Company’s deep industry expertise and global network of relationships will accelerate adoption of Arm’s
intellectual property across existing and new markets.
・Maintain Arm’s dedication to innovation
The Company intends to sustain Arm’s long-term focus on generating more value per device, and driving
licensing wins and future royalty streams in new growth categories, specifically “Enterprise and Embedded
Intelligence.”
・Increased investment to drive the next wave of innovation
The Company intends to support Arm’s multiple growth initiatives by investing in engineering talent andcomplementary acquisitions with the aim of ensuring Arm maintains an R&D edge over existing andemerging competitors. The Company believes such an investment strategy in long-term growth will be easier
to execute as a non-listed company.
・Shared culture and long-term vision
The Company believes the two companies share the same technology-oriented culture, long-term vision,
focus on innovation and commitment to attracting, developing and retaining top talent. These common values
will be the foundation for a strong strategic partnership necessary to capture the significant opportunities
ahead.
・Maintain and grow the UK’s leadership in science and technology
The Company is investing in the UK as a world leader in science and technology development and innovation
and, as evidence of this, intends to invest in multiple Arm growth initiatives, at least doubling the number ofArm employees in the UK over the next five years.

53SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2018c. Summary of Arm(a) Name

Arm Holdings plc(b) Address

110 Fulbourn Road, Cambridge CB1 9NJ, United Kingdom(c) Name and title of representative

Simon Segars, Chief Executive Officer(d) Nature of business・Design of microprocessor intellectual property and related technology
・Sale of software tools(e) Share capital￡0.7 million (as of December 31, 2015)(f) Date of incorporation

October 16, 1990(g) Consolidated net sales￡968 million(For the fiscal year ended December 31, 2015 under IFRSs)

d. Acquisition date
September 5, 2016e. Consideration transferred and the component(Millions of yen)

Acquisition date
(September 5, 2016)
3,319,137

Payment for the acquisition by cash
Fair value of equity interest in Arm already held at thetime of the acquisition

47,867A

Total consideration transferred

3,367,004

Acquisition-related costs of ¥25,780 million arising from the business combination are recognized in “Other
operating loss.”
As a result of the revaluation of the 1.4% equity interest already held by the Company at the time of theacquisition of control in Arm at fair value, the Company recognized a gain of ¥18,168 million through the step
acquisition. This gain is presented as “Gain from remeasurement relating to business combination” in the
consolidated statement of income.

54

SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2018

f. Fair value of assets and liabilities, and goodwill on the acquisition date1

(Millions of yen)

Acquisition date
(September 5, 2016)
16,98459,782
119,090698,682
23,649Cash and cash equivalents
Trade and other receivables
Other current assets
Intangible assets2
Other non-current assets
Total assets

918,187

Current liabilities
Deferred tax liabilities
Other non-current liabilities

61,930128,580
7,292

Total liabilities

197,802

Net assets

B

720,385

Goodwill3

A-B

2,646,619

The above amount is translated at the exchange rate (GBP = JPY138.15) as of the acquisition date.
Notes:
1. Adjustment of the provisional amount
Consideration transferred is allocated to acquired assets and assumed liabilities based on the fair value on theacquisition date. Allocation of the consideration was completed during the three-month period ended June 30,
2017. The details of the adjustments from the provisional amounts are as follows. Due to additional analysis on
the fair value of technologies, intangible assets increased by ¥5,250 million and deferred tax liabilities increasedby ¥958 million. As a result, goodwill decreased by ¥4,292 million.
2. Intangible assets
The components of intangible assets are as follows; the estimated useful lives are from 8 to 20 years fortechnologies, 13 years for customer relationships, and 8 years for trademarks.
(Millions of yen)

Acquisition date
(September 5, 2016)
542,930
148,649
5,940
1,163

Technologies
Customer relationships
Trademarks
Other698,682

Total

3. Goodwill
Goodwill reflects the excess earning power expected from future business development, congregative humanresources related to research and development, and the synergy between the Company and the acquiree.

55

SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2018

g. Payment for acquisition of control over subsidiaries(Millions of yen)

Fiscal year ended
March 31, 2017
(3,319,137)

Payment for the acquisition by cash
Foreign currency exchange gain relating to settlement*
Cash and cash equivalents held by the acquiree at the time ofacquisition of control
Payment for the acquisition of control overthe subsidiary by cash

52,856
16,984(3,249,297)

Note:* Fluctuation in foreign currency exchange rates arising from the acquisition date to the settlement date
(September 15, 2016).

h. Sales and net income of the acquiree
The amounts of the acquiree’s sales and net income before elimination of inter-company transactions after theacquisition date, which are recorded in the consolidated statement of income for the fiscal year ended March 31,
2017, are ¥112,902 million and ¥17,272 million, respectively. In addition, amortization expenses related tointangible assets recognized on the acquisition date are included in the aforementioned net income.
For the fiscal year ended March 31, 2018
(2) Fortessa. Overview of combination
The Company and Fortress entered into a definitive merger agreement under which the Company acquires
Fortress for $3.3 billion in cash in February 2017. The acquisition was completed on December 27, 2017 uponsatisfaction of all necessary conditions defined in the terms of the merger agreement including approval of thetransaction by Fortress shareholders on July 12, 2017 and receipt of all necessary regulatory approvals. Eachoutstanding Fortress share was converted into the right to receive $8.08 per share in cash, with merger proceeds
to be distributed in accordance with payment procedures outlined in Fortress’s Definitive Proxy dated June 7,2017 and the merger agreement incorporated therein. Actual payment amounted to $3.1 billion as a result of
adjusting for the impact of distributions and other factors after the date of the merger agreement.
As a result of the transaction, the Company acquired all equity interests of Fortress and Fortress became awholly-owned subsidiary of the Company.
b. Purpose of acquisition
The Company expects that leadership, broad-based expertise and the world-class investment platform of
Fortress will foster the Company expanding group capabilities and accelerating our SoftBank 2.0 transformation
strategy of bold, disciplined investment and world class execution to drive sustainable long-term growth.
c. Summary of Fortress(a) Name

Fortress Investment Group LLC(b) Address

1345 Avenue of the Americas, New York, NY
Peter L. Briger, Jr., Principal and Co-Chief Executive Officer
Wesley R. Edens, Co-Founder, Principal and Co-Chief Executive Officer
Randal A. Nardone, Co-Founder and Principal
Alternative investment management business(c) Name and title of representative(d) Nature of business(e) Date of incorporation(f) Consolidated net sales

1998$1,163,806 thousand(For the fiscal year ended December 31, 2016 under US GAAP)

56

SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2018d. Acquisition date
December 27, 2017e. Consideration transferred and the component(Millions of yen)

Payment by cash
Payment not included in consideration transferred *A

Total consideration transferred

Acquisition date
(December 27, 2017)
353,966(58,128)
295,838

Acquisition-related costs of ¥6,123 million arising from the business combination are recognized in “Other
operating loss.”
Note:* Payment not included in consideration transferred is the payment for a transaction, separate from the businesscombination, that remunerates employees and former owners of Fortress. For the payment, continuing employment is
a condition. The Company recognized “Other current assets” amounting to ¥16,954 million and “Other non-current
assets” amounting to ¥41,174 million in accordance with the employment period defined in the condition.
f. Fair value of assets and liabilities, non-controlling interests and goodwill on the acquisition date(Millions of yen)

Acquisition date
(December 27, 2017)45,57247,3796,472
104,087
176,690
30,621

Cash and cash equivalents
Trade and other receivables
Other current assets
Investments accounted for using the equity method
Intangible assets1
Non-current assets
Total assets

410,821

Current liabilities
Non-current liabilities

62,80051,609Total liabilities

114,409

Net assets
Non-controlling interests2
3

B

296,412C

14,84914,275A-(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.
The amounts of assets and liabilities on the acquisition date have been revised for the three-month period ended
March 31, 2018 and are as follows: trade and other receivables and investment accounted for using the equity
method have increased by ¥3,528 million and ¥6,931 million, respectively; and current liabilities and non-current
liabilities including deferred tax liabilities have increased by ¥2,752 million and ¥3,519 million, respectively. As
a result, goodwill has decreased by ¥4,286 million.
The above amount is translated at the exchange rate (USD = JPY113.41) as of the acquisition date.

57

SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2018

Notes:
1. Intangible assets
The components of intangible assets are as follows; the estimated useful lives are 3 years for software, from 1.5 to10 years for management contracts, and 10 years for trademarks. The management contracts reflect excess earnings
in the future expected from the agreements which Fortress entered into regarding the management of assets under
their funds.
(Millions of yen)

Acquisition date
(December 27, 2017)
1,762
128,323
5,103
41,502
176,690

SoftwareManagement contracts
Trademarks
Other
Total

2. Non-controlling interests
Non-controlling interests are from subsidiaries of Fortress, and they are measured based on the proportionate
interests after the acquisition in the identifiable net assets of the acquiree at the acquisition date.
3. Goodwill
Goodwill reflects excess earning power expected from future business development and the synergy between the
Company and the acquiree.

g. 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

Fiscal year ended
March 31, 2018
(295,838)
45,572(250,266)

h. Sales and net loss of the acquiree
The amounts of the acquiree’s sales and net loss before elimination of inter-company transactions after theacquisition date, which are recorded in the consolidated statement of income for the fiscal year ended March 31,
2018, are ¥20,525 million and ¥15,201 million, respectively. In addition, amortization expenses related tointangible assets recognized on the acquisition date are included in the aforementioned net loss.
i. Collateral
Based on a term loan agreement of $1.4 billion which was entered into to finance this acquisition, the equity
interests of Fortress and four wholly-owned subsidiaries within this acquisition structure are pledged ascollateral.

58SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2018(3) The Japan Net Bank, Limiteda. Overview of combination
The Board of Directors meeting of Yahoo Japan Corporation held on August 1, 2017 resolved to modify theshareholders agreement with Sumitomo Mitsui Banking Corporation on The Japan Net Bank, Limited andYahoo Japan Corporation entered into a modified agreement with Sumitomo Mitsui Banking Corporation.
Along with such modification, the Company consolidated The Japan Net Bank, Limited by appointing the
majority of The Japan Net Bank, Limited’s directors, through a resolution in an Extraordinary Meeting of the
Shareholders’ of The Japan Net Bank, Limited held on February 1, 2018.
In the Yahoo Japan segment, since its commencement of new strategies in the Commerce Business in October
2013, transaction volume has rapidly increased by means of various measures, such as waiving store tenant fees,
point rewards measures, and the commencement of the Credit Card business. It is believed that strengthening its
financial and payment business further is necessary to revitalize its Commerce Business from here on. The
ecosystem of its services in the Yahoo Japan segment is reinforced through the consolidation of The Japan Net
Bank, Limited.
In addition, Yahoo Japan Corporation leads the management of The Japan Net Bank, Limited through theconsolidation and utilizes the customer base and multi-big data that Yahoo Group has fostered thus far toprovide high value-added financial services for The Japan Net Bank, Limited customers.
The voting rights ratio in The Japan Net Bank, Limited held by the Company remains the same as before at
41.2% and the Company does not hold a majority of the voting rights. However, the Company made The JapanNet Bank, Limited its consolidated subsidiary by appointing the majority of The Japan Net Bank, Limited’s
directors through a resolution in an Extraordinary Meeting of the Shareholders’ of The Japan Net Bank, Limited
held on February 1, 2018.

b. Summary of acquiree
Name

The Japan Net Bank, Limited

Nature of businessBanking businessc. Acquisition dateFebruary 1, 2018

d. Consideration transferred and the component(Millions of yen)

Acquisition date(February 1, 2018)
Fair value of equity interest in The Japan Net Bank, Limited
already held at the time of the acquisition
Total consideration transferred

26,224
26,224

As a result of the revaluation of equity interests already held at the time of the acquisition of control by theCompany in The Japan Net Bank, Limited at fair value on the acquisition date, the Company recognized a gainon the acquisition of ¥372 million for the fiscal year ended March 31, 2018. This gain is presented as “Gainfrom remeasurement relating to business combination” in the consolidated statement of income.

59SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2018

e. Fair value of assets and liabilities, and non-controlling interests on the acquisition date(Millions of yen)

Acquisition date(February 1, 2018)337,224

Cash and cash equivalents
Other current assets

133,782

Investment securities

244,044

Other non-current assets

103,746

Total assets

818,796

Deposits for banking business (current)

711,317

Other current liabilities

17,278Non-current liabilities

26,277

Total liabilities

754,872

Net assets

A

63,924Non-controlling interests*

B

37,700A-B

26,224

Net amount

Note:* 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.

f. Proceeds from acquisition of control over subsidiaries(Millions of yen)

Fiscal year ended
March 31, 2018
Cash and cash equivalents held by the acquiree at the time ofacquisition of control
Proceeds in cash from the acquisition of control over the subsidiaryg. Sales and net income of the acquiree
The amounts of the acquiree’s sales and net income after the acquisition date are immaterial.

60

337,224
337,224

SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2018

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

As ofMarch 31, 2017
263,061
2,654,096
627,730
99,905
302,177
30,285
3,977,254

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

As of
March 31, 2018
231,895
2,345,098
820,391
88,300293,761
77,402
3,856,847

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

As ofMarch 31, 2017
Intangible assets with indefinite useful lives
FCC licenses
Trademarks
Other
Intangible assets with finite useful lives
SoftwareTechnologies
Customer relationships
Spectrum migration costs
Management contracts*
Favorable lease contracts
Trademarks
Other
Total

As of
March 31, 2018

4,100,651
703,031-3,960,597
664,878
12,226

722,934
522,894448,806
103,814104,754
57,532
182,223
6,946,639

739,901
521,603
332,444
125,866
115,333
89,27857,357
165,067
6,784,550

Note:* The management contracts reflect excess earnings in the future expected from the agreements which Fortress entered into
regarding the management of assets under their funds.

6. Income taxes
Due to the enactment of the Tax Act in December 2017 in the U. S., a deferred tax liability of ¥776,945 million(translated at the exchange rate as of March 31, 2018) at Sprint was reversed. Also income taxes in the consolidated
statement of income decreased by ¥815,059 million and other comprehensive income increased by ¥8,244 million.
The details are as follows.
(1) Reduction in the federal corporate tax rate
The federal corporate tax rate was reduced from 35% to 21% effective January 1, 2018.
Due to the reduction, ¥550,093 million of a part of deferred tax liabilities related to the FCC license and others,
which was calculated based on the tax rate as of the acquisition date of Sprint in 2013, was reversed. Also, income
taxes decreased by ¥584,026 million.

61

SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2018

(2) Abolition of time limit on use of future loss carryforwards
Net operating losses generated in tax years beginning after December 31, 2017 may be carried forward indefinitely.
For Sprint, its tax year starts from April; therefore, net operating losses generated after April 1, 2018 may be carriedforward indefinitely.
At Sprint, for certain deductible temporary differences where deferred tax assets could not be previously realized, it
was likely to be recoverable because the taxable temporary differences from assets with indefinite lives, such as the
FCC licenses, may be a source of future taxable income. As a result of this change, ¥226,852 million of deferred tax
assets were recognized (offset by deferred tax liabilities). Also, income taxes decreased by ¥231,033 million andother comprehensive income increased by ¥8,244 million.

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

As ofMarch 31, 2017
Current
Short-term borrowings1
Commercial paper
Current portion of long-term borrowings1
Current portion of corporate bonds
Current portion of lease obligations
Current portion of installment payables
Total
Non-current
Long-term borrowings1,2
Corporate bonds
Lease obligations
Financial liabilities relating to sale of shares by variable
prepaid forward contract3
Installment payables
Total

62

As of
March 31, 2018667,664
80,0001,128,510
339,462438,284
40,173
2,694,093

957,573
100,000
1,093,705
590,277455,670
20,1803,217,405

3,377,625
7,233,838
807,606

5,121,591
7,234,049
766,204

715,448

688,332

29,76012,164,277

14,607
13,824,783

SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2018

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

As ofMarch 31, 2017
Current
Short-term borrowings
Current portion of long-term borrowings
Total
Non-current
Long-term borrowings
Total
SoftBank Vision Fund and Delta Fund interest-bearing debt
(before elimination of inter-company transactions)Eliminated amount of inter-company transactions
SoftBank Vision Fund and Delta Fund interest-bearing debt
(after elimination of inter-company transactions)

As of
March 31, 2018-87,259313,143
400,402-108,749
108,749-

509,151-(10,744)-498,407

Investments from SoftBank Vision Fund and Delta Fund aggregating ¥718,803 million accounted for using FVTPL
are pledged as collateral for ¥498,407 million of interest-bearing debt, which is included in the above table.
2. ¥363,384 million of Alibaba shares (carrying amount on a consolidated basis) held by a wholly-owned subsidiary of theCompany, is pledged as collateral for ¥842,313 million of long-term borrowings of the subsidiary as of March 31, 2018.
The borrowings include an early settlement clause and an early settlement may be elected under certain circumstancessuch as a significant decrease in the fair value of pledged Alibaba shares. The borrowings are non-recourse debts, andtherefore, SoftBank Group Corp. will not be responsible for the borrowings. The creditors would be able to dispose theasset pledged as collateral upon a circumstance where the early settlement was demanded and the subsidiary did not
repay the borrowings, accordingly.
3. The details are described in “(2) Transaction for sale of Alibaba shares by variable prepaid forward contract.”(2) Transaction for sale of Alibaba shares by variable prepaid forward contract
On June 10, 2016, West Raptor Holdings, LLC (“WRH LLC”), a wholly-owned subsidiary of the Company,
entered into a variable prepaid forward contract to sell Alibaba shares with a newly formed trust, Mandatory
Exchangeable Trust (the “Trust”), 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
from the $6.6 billion total of Trust Securities were deducted in order to purchase U.S. Treasury securities, which
would fund distributions on the Trust Securities, and cover expenses for the issuance of the Trust Securities.
The settlement of the Alibaba shares based on the variable prepaid forward contract is conducted concurrently
with the exchange of Trust Securities. At the exchange date, which is expected to be the first scheduled trading
day after June 1, 2019, Trust Securities are exchanged for a certain number of ADSs, determined by reference tothe 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 thevariable prepaid forward contract is classified as a hybrid financial instrument with embedded derivatives of acollar transaction.

63

SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2018

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 are measured at amortized cost and embedded derivatives are measured at fairvalue; ¥688,332 million (¥715,448 million as of March 31, 2017) is recognized as financial liabilities relating to
the sale of shares through the variable prepaid forward contract in interest-bearing debt (non-current liabilities)and ¥714,126 million (¥143,935 million as of March 31, 2017) is recognized as derivative financial liabilities(non-current liabilities) in the consolidated statement of financial position as of March 31, 2018; ¥604,156 million(¥232,729 million of derivative loss for the fiscal year ended March 31, 2017) is recognized as a derivative loss inthe consolidated statement of income for the fiscal year ended March 31, 2018.
WRH LLC has the option (“cash settlement option”) to settle the variable prepaid forward contract by eitherdelivering cash or a combination of cash and Alibaba shares. If WRH LLC elects the cash settlement option, thecash equivalent to the fair value of the number of shares for the settlement, which is determined by the transaction
price of ADSs, will be paid.
Also, WRH LLC has the option (“early settlement option”) to settle the variable prepaid forward contract prior to
the scheduled settlement date. Settlement of the variable prepaid forward contract may be made prior to thescheduled settlement date if WRH LLC elects the early settlement option or under certain circumstances.
Alibaba shares held by WRH LLC are pledged as collateral. The Company applies the equity method to theseshares and they are included in “Investments accounted for using the equity method” in the consolidated
statement of financial position as of March 31, 2018. The carrying amount of Alibaba shares pledged as collateralby the Company is ¥217,182 million as of March 31, 2018 (¥154,440 million as of March 31, 2017).
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(3) Components of increase and decrease in short-term interest-bearing debt
The components of “Increase (decrease) in short-term interest-bearing debt, net” in the consolidated statement ofcash flows are as follows:(Millions of yen)

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

64

Fiscal year ended
March 31, 2017322,216
38,000Fiscal year ended
March 31, 2018(60,829)
20,000360,216(40,829)

SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2018

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

Proceeds from borrowings
Proceeds from issuance of corporate bonds
Proceeds from sale-leaseback of newly acquired
equipment
Proceeds from advances received for sale of shares by
variable prepaid forward contract
Total

Fiscal year ended
March 31, 2017
2,715,725
1,006,000

Fiscal year ended
March 31, 2018
7,176,036
899,079

492,369

472,231

578,436-

4,792,530

8,547,346(5) Components of repayment of interest-bearing debt
The components of “Repayment of interest-bearing debt” in the consolidated statement of cash flows are as
follows:(Millions of yen)

Fiscal year ended
March 31, 2017
(920,315)(862,281)(459,788)(40,683)(2,283,067)

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

Fiscal year ended
March 31, 2018
(4,988,513)(474,975)(502,520)(37,180)(6,003,188)

8. Foreign currency exchange rates
Exchange rates of the major currencies used for translating financial statements of foreign operations are as follows:(1) Rate at the end of the period
(yen)
As of
March 31, 2017112.19140.08

USD
GBP

As of
March 31, 2018106.24148.84(2) Average rate for the quarter
For the fiscal year ended March 31, 2017

USD
GBP*

Three-month period
endedJune 30, 2016
109.07-

Three-month period
ended
September 30, 2016
102.91132.95Three-month period
ended
December 31, 2016108.72135.56(yen)
Three-month period
ended
March 31, 2017113.76141.33Note:* Average rate described for the three-month period ended September 30, 2016 is the average rate for the
one-month period of September 30, 2016.

65

SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2018

For the fiscal year ended March 31, 2018

USD
GBP

Three-month period
endedJune 30, 2017111.61142.92Three-month period
ended
September 30, 2017111.38146.20Three-month period
ended
December 31, 2017112.74150.77(yen)
Three-month period
ended
March 31, 2018108.85151.01

9. Equity
The components of accumulated other comprehensive income are as follows:(Millions of yen)

As ofMarch 31, 2017

As ofMarch 31, 2018

Available-for-sale financial assets

11,98363,700Cash flow hedges
Exchange differences on translating
foreign operations(44,877)(55,286)

244,140

309,545

211,246

317,959

Total

10. Other equity instruments
On July 19, 2017, the Company issued USD-denominated Undated Subordinated Non-Call 6 years (“NC6”)
Resettable Notes and USD-denominated Undated Subordinated Non-Call 10 years (“NC10”) Resettable Notes(collectively, the “Hybrid Notes”).
The Hybrid Notes are classified as equity instruments in accordance with IFRSs because the Company has the option
to defer interest payments, the notes have no maturity date, and the Company has an unconditional right to avoid
delivering cash or another financial asset except for distribution of residual assets on liquidation. As a result of thistransaction, “Other equity instruments” is increased by ¥496,876 million (after deducting ¥7,034 million oftransaction costs) in the consolidated statement of financial position. The corresponding amount is recorded as“Proceeds from issuance of other equity instruments” under cash flows from financing activities in the consolidated
statement of cash flows.
The payment of interest was completed on the interest payment date, January 19, 2018 and “Retained earnings”
decreased by ¥15,852 million as “Distribution to owners of other equity instruments” in the consolidated statementof changes in equity.
Also, as of March 31, 2018, accrued interest, which is not recognized as a distribution to owners of other equity
instruments because the payment has not yet been determined, is ¥6,062 million.

66

SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2018

The details of the Hybrid Notes are as follows:1.

Undated Subordinated NC6

Undated Subordinated NC10

Resettable Notes

Resettable Notes

USD 2.75 billion

USD 1.75 billion(JPY 307.9 billion)(JPY 196.0 billion)

Total amount of issue

2.

Issue price

100% of the principal amount

100% of the principal amount3.

Initial interest rate*

6.000% per annum

6.875% per annum

4.

Maturity date

None (Perpetual)

None (Perpetual)

5.

Optional redemption

The Company may, at its discretion, redeem

The Company may, at its discretion, redeem

the NC6 Notes on the first call date on July

the NC10 Notes on the first call date on July19, 2023 or any interest payment date19, 2027 or any interest payment datethereafter.

thereafter

6.

Interest payment

Payable semi-annually in arrears on January 19 and July 19 of each year

7.

Closing dateJuly 19, 20178.

Collateral

None

9.

Guarantee

None

10.

Covenants

None

11.

Subordination

In the event of bankruptcy, etc., the Hybrid Notes shall be subordinated to all of theCompany’s senior indebtedness (including domestic subordinated bonds issued in 2014 and2015 by the Company) and shall rank substantially pari passu with the domestic hybrid
bonds issued in 2016 by the Company and its senior preference shares (if issued in the
future) and senior to the Company’s common stock.

12.

Listing

Singapore Exchange Securities Trading Limited

13.

Use of proceeds

The Company used the proceeds of issuance of the Hybrid Notes for general corporate
purposes.

Note:* There is a step-up interest provision on the Undated Subordinated NC6 Resettable Note of 25bps on July 19, 2023 andadditional 75bps on July 19, 2038, and on the Undated Subordinated NC10 Resettable Note of 25bps on July 19, 2027 andadditional 75bps on July 19, 2042.

67

SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2018

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

Fiscal year ended
March 31, 2017
Domestic Telecommunications segment
Gain on derecognition of accrual in relation tospectrum migration costs
Sprint segment
Gain on spectrum license exchange1
Litigation2
Loss on disposal of property, plant andequipment3
Loss on contract termination4
U.S. state tax charge
OtherYahoo Japan segment
Insurance income5
Loss on disaster
Other
Distribution segment
Impairment loss on goodwill6
Impairment loss on non-current assets6
Arm segment
Acquisition-related costs
Company-wide
Expenses resulting from resignation of director7
Other
Income and loss on equity method investments
at Fortress
Write-down of inventories8
Acquisition-related costs9
Impairment loss on assets
Other
Total

Fiscal year ended
March 31, 2018
-

4,044

36,385(4,209)53,43540,159(55,727)(95,213)(15,399)(10,600)(10,478)(24,411)(4,996)(13,006)
2,269

4,973
4,719

(30,260)-(43,128)(7,369)(25,780)-(8,847)(1,577)-

14,953(8,051)(143,703)(13,754)(6,123)(3,788)(78,076)

Notes:
1. License exchange gain resulting from the exchange of a certain portion of the telecommunications spectrum withother carriers (non-cash transaction). The spectrum is recorded as FCC licenses in intangible assets.
2. Mainly, net benefits in litigation associated with legal settlements for patent infringement lawsuits for the fiscal
year ended March 31, 2018.
3. Mainly, ¥40,805 million of loss related to cell site construction costs that are no longer expected to be used as aresult of changes in Sprint’s network plans and ¥55,108 million of loss resulted from the write-off of leased
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 for the fiscal year ended March 31, 2018.
4. Loss mainly resulting from termination of network contracts is recognized for the fiscal year ended March 31,
2018.
5. Insurance proceeds related to a fire incident that occurred at a logistics center of ASKUL Corporation (ASKUL
Logi PARK Tokyo Metropolitan) in February 2017.
6. Impairment losses at Brightstar. The goodwill of Brightstar is allocated to the entire Brightstar entity, which ismade up of four cash-generating units (Brightstar’s US & Canada, Latin America, Asia & Oceania, and Europe& Africa units). Intangible assets with indefinite useful lives other than goodwill are allocated to three of the cash

68SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2018

generating units (Brightstar’s US & Canada, Asia & Oceania, and Europe & Africa units). The business plan ofBrightstar was revised during the fiscal year ended March 31, 2018, and indicators of impairment were identified
at all of the cash-generating units. This included impairment indicators where intangible assets with indefinite
useful lives were allocated as well as the entire Brightstar entity where goodwill is allocated. Therefore, theimpairment test was conducted on these cash-generating units and the entire Brightstar entity. As a result of theimpairment test, an impairment loss was recognized because the recoverable amounts of Brightstar (the entire
entity) and Brightstar’s Europe & Africa cash-generating unit were less than the carrying amounts. Impairment
losses on goodwill, intangible assets, and property, plant and equipment were ¥43,128 million, ¥6,717 million,and ¥652 million, respectively.
Fair value less disposal cost is used as the recoverable amount and measured using the income approach and themarket approach. Under the income approach, fair value is measured by discounting cash flows which are
estimated based on business plans for the next 10 years while taking into account future cash flows that market
participants would expect to receive in accordance with their assumptions, discounted to the present value using a
post-tax discount rate of 10.5-11%. The cash flows from after 10 years are assumed on the basis of a 3% growthrate. Under the market approach, EV/EBITDA of similar companies which are comparable to Brightstar Global
Group Inc. are used.
7. Expenses resulting from the resignation of Nikesh Arora from his position as a director. Resignation expenses
consist of expenses for which payment amounts were defined at the date of the resignation and expenses forwhich payment amounts were defined depending on the share price of SoftBank Group Corp in June and March
2018, when the payments were made. In addition to the entire expense for which payment amount is defined, theCompany accrued an expense of ¥3,830 million, for the fiscal year ended March 31, 2017, based on the SoftBank
Group Corp. share price as of March 31, 2017, and recorded an expense of ¥1,577 million which is determined
between the accrued amount and the determined amount during the fiscal year ended March 31, 2018
8. As a result of revising the business plan of Sports Live Entertainment Corporation which operates a sports
content distribution business, the net realizable value of inventories was less than its carrying amount and,
therefore, a write-down was recognized.
9. Expenses arising from the business combination of Fortress. The details are described in “(2) Fortress” under“Note 3. Business combinations.”

12. Finance cost
The components of finance cost are as follows:(Millions of yen)

Fiscal year ended
March 31, 2017
Interest expenses(467,311)

Fiscal year ended
March 31, 2018
(516,132)

13. Derivative loss
A derivative loss was recorded for ¥604,156 million (a derivative loss of ¥232,729 million for the fiscal year ended
March 31, 2017) related to the Alibaba share collar transaction included in the variable prepaid forward contract.
The details are described in “(2) Transaction for sale of Alibaba shares by variable prepaid forward contract” under“Note 7. Interest-bearing debt.”

69

SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2018

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

Dilution gain from changes in equity interest1
Loss on exchage of coroporate bonds2
Loss on sales of cryptocurrency3
Loss relating to loss of control
Impairment loss on assets classified as held
for sale
Other
Total

Fiscal year ended
March 31, 2017
77,540-Fiscal year ended
March 31, 201845,186(19,809)-(18,890)(79,278)-(42,540)-(1,639)(45,917)

9,244
15,731

Notes:
1. Mainly, dilution gain arising from changes in Alibaba’s equity interest held by the Company, due to the exercise ofstock options and the allocation of new shares to a third party in Alibaba.
2. On March 7, 2018, SoftBank Group Corp. announced an exchange offer with respect to newly issued notes (the“Exchange Notes”) or a consent solicitation for an amendment of terms and conditions, to the bondholders of
foreign-currency-denominated senior notes issued in 2015 (the “Existing Notes”). Issuance of the Exchange Notes
to the bondholders who tendered for exchange the Existing Notes to the Exchange Notes was completed on April 3,
2018, however, under requirements of IFRSs, the extinguishment of the Existing Notes and the exchange to the
Exchange Notes, was considered to be satisfied on March 22, 2018, the exchange decision date. As a result,
SoftBank Group Corp. derecognized the Existing Notes and recognized the Exchange Notes. Also, the difference
between the carrying amount of the Existing Notes and face value of the Exchange Notes was recognized as a loss.
3. Loss arising from sales of all bitcoin held by Fortress. The amount of loss represents the difference between the sales
price and the fair value of bitcoin which was recognized in the consolidated statement of financial position at theacquisition date.

70SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2018

15. Income and loss arising from the SoftBank Vision Fund and Delta Fund business included in the consolidated
statement of income
Income and loss arising from the SoftBank Vision Fund and Delta Fund business included above the income before
income tax line in the consolidated statement of income are calculated by aggregating income and loss arising from
SoftBank Vision Fund and Delta Fund, income and loss arising from each general partner, income and loss arisingfrom SBIA and two advisory companies which support SBIA in the U.S. and Japan, and income and loss such as an
expense related to fund establishment arising from the Company. All inter-company transactions have also been
eliminated.
(Millions of yen)

Fiscal year ended
March 31, 2017
Gain and loss on investments at SoftBank Vision
Fund and Delta Fund1
Unrealized gain and loss on valuation of
investments
Interest and dividend income from investments
Operating expenses
Operating income from SoftBank Vision Fundand Delta Fund
Finance cost2
Derivative gain and loss
Change in third-party interests in SoftBank Vision
Fund and Delta Fund
Other non-operating income and loss
Income before income tax

Fiscal year ended
March 31, 2018-345,975-

6,120
352,095(49,114)-302,981-(7,801)(8,902)-(160,382)-(281)
125,615

Notes:
1. “Realized gain and loss on sales of investments” is not recognized for the fiscal year ended March 31, 2018.
2. The amount before elimination of inter-company transactions is ¥(7,895) million.

71SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2018

16. Earnings per share(1) Basic earnings per share
Fiscal year ended
March 31, 2017
Net income attributable to ordinary shareholders of the parent(Millions of yen)
Net income attributable to owners of the parent
Net income not-attributable to ordinary shareholders of
the parent*
Net income used in the calculation of basic earnings per share(Details)
Continuing operations
Discontinued operations
Weighted-average number of ordinary shares(Thousands of shares)
Basic earnings per share (yen)Continuing operations
Discontinued operations
Total

Fiscal year ended
March 31, 2018

1,426,308

1,038,977

1,426,308(21,914)1,017,063

877,902548,406

1,017,063-

1,108,237

1,089,465

792.16494.85
1,287.01

933.54933.54

Note:* Net income not-attributable to ordinary shareholders of the parent represents net income attributable to owners of other
equity instruments.

(2) Diluted earnings per share
Fiscal year ended
March 31, 2017
Diluted net income attributable to ordinary shareholders of theparent (Millions of yen)
Continuing operations
Net income from continuing operations used in the calculationof basic earnings per share
Effect of dilutive securities issued by subsidiaries and associates
Sub total
Discontinued operations
Net income from discontinued operations used in the calculationof basic earnings per share
Sub total
Total
Weighted-average number of ordinary shares used in the calculationof diluted earnings per share (Thousands of shares)
Weighted-average number of ordinary shares
Adjustments:
Stock acquisition rights
Total
Diluted earnings per share (yen)Continuing operations
Discontinued operations
Total

72

Fiscal year ended
March 31, 2018877,902(11,299)
866,603

1,017,063(26,190)
990,873

548,406
548,406
1,415,009

990,873

1,108,237

1,089,465

1,018
1,109,255

1,343
1,090,808

781.25494.391,275.64

908.38908.38

SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 201817. Supplemental information to the consolidated statement of cash flows(1) Gain and loss on investments at SoftBank Vision Fund and Delta FundFor the fiscal year ended March 31, 2018
The details of gain and loss on investments at SoftBank Vision Fund and Delta Fund are described in “Note 15.
Income and loss arising from the SoftBank Vision Fund and Delta Fund business included in the consolidated
statement of income.”(2) Distribution and repayment from SoftBank Vision Fund and Delta Fund to Third-Party Investors
For the fiscal year ended March 31, 2018
The distributions and repayments from SoftBank Vision Fund and Delta Fund to Third-Party Investors are¥(20,918) million and ¥(166,143) million respectively.
(3) Significant non-cash transactions
The Japan Net Bank, Limited has become a subsidiary of the Company for the fiscal year ended March 31, 2018
by appointing the majority of The Japan Net Bank, Limited’s directors from Yahoo Japan Corporation, which is a
subsidiary of the Company, and the transaction related to this business combination is classified as a non-cash
transaction because the business combination is conducted without cash outlay. The details are described in “(3)The Japan Net Bank, Limited” under “Note 3. Business combinations.”

73SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 201818. Significant subsequent events
Sprint’s merger with T-Mobile US, Inc. (de-consolidation)
On April 29, 2018 (EST), Sprint and T-Mobile US, Inc. (“T-Mobile”) have entered into a definitive agreement tomerge in an all-stock transaction at a fixed exchange ratio of 0.10256 T-Mobile shares for each Sprint share (or theequivalent of 9.75 Sprint shares for each T-Mobile share).
The transaction is subject to Sprint and T-Mobile stockholder approval, regulatory approvals and other customary
closing conditions. The transaction is expected to close no later than the first half of 2019.
After the transaction, Deutsche Telekom AG and the Company are expected to hold approximately 41.7% and 27.4%
of diluted economic ownership of the combined company “New T-Mobile,” respectively, with the remaining
approximately 30.9% held by the public. The Board will consist of 14 directors: 9 nominated by Deutsche Telekom
AG and 4 nominated by the Company. Upon completion of the transaction, New T-Mobile is expected to become an
equity method associate of the Company, and Sprint is likely to be de-consolidated from the Company.

<After the transaction>
Deutsche

SoftBank Group

FormerFormerTelekom AG

Corp.

Sprint Public

T-mobile Public

41.7％

5.6％

27.4％

Beneficial ownershiprepresented by：

T-Mobile US, Inc.
(“New T-Mobile”)

Huron Merger Sub LLC

Sprint74

25.3％