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

SoftBank Group Corp.
Consolidated Financial Report
For the Nine-month Period Ended December 31, 2018 (IFRS)Tokyo, February 6, 20191.

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

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

OperatingincomeIncomebefore incometax

Net income

Net income
Total
attributable tocomprehensive
owners of theincomeparentAmountAmountAmountAmountNet sales
Amount

%

%

%

%

%

Amount%Nine-month period ended¥7,168,452 5.2 ¥1,859,007 61.8 ¥1,809,834 221.0 ¥1,574,457 30.9 ¥1,538,396 51.6 ¥1,408,776 (14.2)
December 31, 2018
Nine-month period ended¥6,811,274 3.5 ¥1,148,829 23.6 ¥563,804 (41.0) ¥1,202,745 34.8 ¥1,014,944 20.0 ¥1,641,278 74.7
December 31, 2017

Basic earnings per
share (yen)Diluted earnings per
share (yen)Nine-month period ended
December 31, 2018

¥1,389.72¥1,380.75

Nine-month period ended
December 31, 2017¥918.29¥894.15(2) Financial Position

Total assets

Total equity

Equityattributable toowners of theparentAs of December 31, 2018¥36,459,477¥9,286,389¥7,912,444

21.7

As of March 31, 2018

¥31,180,466¥6,273,022¥5,184,176

16.6

2.

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

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

Note:
Revision of forecasts on the dividends: No

Second quarter

Third quarter

Fourth quarter

Total

(yen)

(yen)

(yen)

(yen)

(yen)

-

22.00

-

22.00

44.00

-

22.00

22.00

44.00

* Notes(1) Significant changes in scope of consolidation (changes in scope of consolidation of specified subsidiaries): No
Newly consolidated: None
Excluded from consolidation: None
Note:
* Foreign subsidiaries prepare stand-alone financial statements only under circumstances where it is necessary under
their local laws and practices. Applicability of Cabinet Office Ordinance on Disclosure of Corporate Affairs, etc.
Article 19, Paragraph (10), Item (i) to (iii), is determined by using the financial statements.
On the other hand, for foreign subsidiaries that do not prepare stand-alone financial statements, information on thecapital and net assets for those companies is not available. Therefore, Cabinet Office Ordinance on Disclosure of
Corporate Affairs, etc. Article 19, Paragraph (10), Item (i) is used to determine whether the companies are thespecified subsidiaries.
For fund-type subsidiaries, the amount of net assets based on financial statements prepared in accordance with thecorresponding laws and practices is used to determine the applicability of Cabinet Office Ordinance on Disclosure of
Corporate Affairs, etc. Article 19, Paragraph (10), Item (ii).
(2) Changes in accounting policies and accounting estimates[1] Changes in accounting policies required by IFRSs: Yes[2] Changes in accounting policies other than those in [1]: No[3] Changes in accounting estimates: Yes
Please refer to page 37 “(1) Changes in Accounting Policies” and “(2) Changes in Accounting Estimates” under “2.
Notes to Summary Information” for details.
(3) Number of shares issued (common stock)[1] Number of shares issued (including treasury stock):
As of December 31, 2018: 1,100,660,365 shares
As of March 31, 2018:
1,100,660,365 shares[2] Number of shares of treasury stock:
As of December 31, 2018: 10,423,553 shares
As of March 31, 2018:
11,162,425 shares[3] Number of average shares outstanding during nine-month period (April-December):
As of December 31, 2018: 1,089,778,735 shares
As of December 31, 2017: 1,089,453,785 shares* This condensed interim consolidated financial report is not subject to interim review procedures by certified public
accountants or an audit firm.
* Note to forecasts on the consolidated results of operations and other items
Descriptions regarding the future are estimated based on the information that the Company is able to obtain at the present
point in time and assumptions which are deemed to be reasonable. However, actual results may be different due to various
factors.
On February 6, 2019 (JST), the Company will hold an earnings results briefing for the media, institutional investors, andfinancial institutions. This earnings results briefing will be broadcast live on the Company’s website in both Japanese andEnglish at https://group.softbank/en/corp/irinfo/presentations/. The Data Sheet will also be posted on the website around 4
p.m. on the same day at the same site.

SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 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(a) SoftBank Segment ........................................................................................................................................ P. 10(b) Sprint Segment .............................................................................................................................................. P. 12(c) Yahoo Japan Segment ................................................................................................................................... P. 15(d) Arm Segment ................................................................................................................................................ P. 16(e) SoftBank Vision Fund and Delta Fund Segment .......................................................................................... P. 20(f) Brightstar Segment ........................................................................................................................................ P. 25(g) Other and Reconciliation .............................................................................................................................. P. 25(2) Overview of Financial Position ............................................................................................................................ P. 26(3) Overview of Cash Flows ...................................................................................................................................... P. 34(4) Forecasts ............................................................................................................................................................... P. 36
2. Notes to Summary Information ............................................................................................................................... P. 37(1) Changes in Accounting Policies ........................................................................................................................ P. 37(2) Changes in Accounting Estimates ..................................................................................................................... P. 37
3. Condensed Interim Consolidated Financial Statements and Primary Notes ............................................................ P. 37(1) Condensed Interim Consolidated Statement of Financial Position .................................................................... P. 38(2) Condensed Interim Consolidated Statement of Income and Condensed Interim Consolidated Statement ofComprehensive Income .................................................................................................................................... P. 40(3) Condensed Interim Consolidated Statement of Changes in Equity ................................................................... P. 44(4) Condensed Interim Consolidated Statement of Cash Flows .............................................................................. P. 47(5) Significant Doubt about Going Concern Assumption ....................................................................................... P. 49(6) Notes to Condensed Interim Consolidated Financial Statements ...................................................................... P. 49

1SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 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
Arm
Arm Limited
SoftBank Vision Fund or SVF
SoftBank Vision Fund L.P. and its alternative investment vehicles
Delta FundSB Delta Fund (Jersey) L.P.
Alibaba
Alibaba Group Holding Limited
SBIA
SB Investment Advisers (UK) Limited
The first quarter
Three-month period ended June 30, 2018
The second quarter
Three-month period ended September 30, 2018
The third quarter
Three-month period ended December 31, 2018
The period
Nine-month period ended December 31, 2018
The fiscal year
Fiscal year ending March 31, 2019
The previous fiscal year
Fiscal year ended March 31, 2018
Adoption of IFRS 9 and IFRS 15
In the first quarter, the Company adopted IFRS 9 “Financial Instruments” and IFRS 15 “Revenue from Contracts with
Customers” (collectively, the “new standards”). The cumulative impact of the adoption of the new standards was recognized as an adjustment to the balance of retained earnings on the date of adoption (April 1, 2018), and the Company has
not adjusted the presentation of information of the previous fiscal year. In the tables of this appendix, figures for the same
period of the previous fiscal year are presented under “previous standards,” and the impacts of adopting the new standards
on the results of the fiscal year are represented under “impact of adopting new standards.” Further, in the consolidated
statement of financial position, the cumulative impact of the adoption of the new standards was recognized as adjustments
to the balances of retained earnings and accumulated other comprehensive income on the date of adoption. See “1. Significant accounting policies” under “(6) Notes to Condensed Interim Consolidated Financial Statements” in “3. Condensed
Interim Consolidated Financial Statements and Primary Notes” for details.

Changes in Segment Classification
In accordance with changes in the Company’s organization based on its unique organizational strategy, Cluster of No.1
Strategy, the Company revised its segment classifications for management purposes in the first quarter, comprising six
reportable segments: SoftBank, Sprint, Yahoo Japan, Arm, SoftBank Vision Fund and Delta Fund, and Brightstar. See “b.
Results by Segment” for an overview of reportable segments.

2

SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 2018

1. Results of Operations(1) Overview of Results of Operations
1. Highlights of results
 Operating income: ¥1,859.0 billion (increased 61.8% yoy)
- Operating income from SoftBank Vision Fund and Delta Fund was ¥808.8 billion, reflecting the increase in thefair values of Uber, OYO, WeWork,1 and other investments. A fall in NVIDIA’s share price reduced valuation
gain by ¥299.5 billion.
 Net income attributable to owners of the parent: ¥1,538.4 billion (increased 51.6% yoy)
- Derivative gain of ¥544.6 billion: ¥365.9 billion related to Alibaba shares and ¥249.5 billion related to NVIDIA
shares, offsetting the majority of its valuation loss due to fall in share price.
- Income taxes of ¥235.4 billion: tax benefit of ¥405.6 billion through the use of loss carryforwards of a subsidiarythat had not been recognized as deferred tax assets, for the disposal of SoftBank Corp. shares.
2. Highlights of operations- Listing of SoftBank Corp.
- Merger of Sprint and T-Mobile was approved by the Committee on Foreign Investment in the United States(CFIUS). Review by the Federal Communications Commission (FCC) and other regulatory agencies is still underway.
- SoftBank Vision Fund investments to date: 49 investments totaling $45.5 billion (excluding exited investments).

Listing of SoftBank Corp.
The Company’s subsidiary SoftBank Corp. listed on the First Section of the Tokyo Stock Exchange on December 19, 2018.
At the time of this listing, SoftBank Group Japan Corporation, a wholly owned subsidiary of the Company, disposed a
portion of its holdings of SoftBank Corp. shares (33.50% of total shares issued) and received proceeds of ¥2,349,832
million. As a result, the Company’s indirect ownership percentage of SoftBank Corp. changed from 99.99% to 66.49%.
Since SoftBank Corp. remains a subsidiary of the Company, an amount equivalent to the gain on this disposal (after considering tax) has been recorded as capital surplus in the Company’s condensed interim consolidated statement of financial
position.

Initiatives Using Proceeds from the Disposal of SoftBank Corp. Shares
The Company aims to improve its financial position and enhance shareholder returns by using funds of ¥2,349,832 million(before considering tax for the fiscal year) raised through the disposal of a portion of SoftBank Corp. shares held at thelisting of SoftBank Corp., while ensuring a good balance with strategic investments necessary for growth.
For the purpose of strengthening financial position, the Company repaid $4.37 billion in January 2019, out of the borrowings made by its wholly owned subsidiary Skywalk Finance GK using Alibaba shares as collateral. The Company alsoacquired $410 million and €520 million of its outstanding foreign currency-denominated senior notes.
For enhancing shareholder returns, on February 6, 2019, the Company resolved the repurchase of up to 112,000,000
shares (10.3% of total number of shares issued (excluding treasury stock)) with the maximum allowance of ¥600.0 billion.

3

SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 2018a. Consolidated Results of Operations(Millions of yen)

Nine months ended December 31
2017
2018
PreviousNew
standards
standards
Net sales
Operating income (excluding
income from SoftBank Vision
Fund and Delta Fund)
Operating income from
SoftBank Vision Fund andDelta Fund2
Operating income
Income before income tax
Net income
Net income attributable to ownersof the parent

ChangeChange %Nine months ended
December 31, 2018
Impact of adopting
new standards

6,811,274

7,168,452

357,178

5.2%

52,188912,4021,050,215

137,81315.1%

96,648236,427
1,148,829
563,804
1,202,745

808,792
1,859,007
1,809,834
1,574,457

572,365
710,178
1,246,030
371,712242.1%
61.8%
221.0%
30.9%

121,892
218,540
197,631
186,291

1,014,944

1,538,396

523,45251.6%

178,228

Reference: Average exchange rates used for translations
Fiscal year ended
March 2018

USD / JPY

Fiscal year ending
March 2019

Q1

Q2

Q3

Q4

Q1

Q2

Q3

¥111.61¥111.38¥112.74¥108.85¥108.71¥111.55¥112.83

An overview of the consolidated results of operations for the period is as follows:(a) Net Sales
Net sales increased ¥357,178 million (5.2%) year on year, to ¥7,168,452 million. Net sales increased in the following
segments: SoftBank, Sprint, Yahoo Japan, and Brightstar. Net sales decreased in the Arm segment.
(b) Operating Income (Excluding Income from SoftBank Vision Fund and Delta Fund)
Operating income (excluding income from SoftBank Vision Fund and Delta Fund) increased ¥137,813 million (15.1%)
year on year, to ¥1,050,215 million. Segment income increased ¥29,057 million in the SoftBank segment, ¥159,070 million
in the Arm segment, and ¥42,907 million in the Brightstar segment. However, segment income deteriorated ¥36,523 million
in the Sprint segment and ¥25,158 million in the Yahoo Japan segment.
The segment income of the Arm segment includes gain relating to loss of control over subsidiaries of ¥176,261 million,
which was recognized as a result of Arm’s Chinese subsidiary becoming an associate accounted for using the equity method,
following the establishment of a joint venture.

4

SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 2018(c) Operating Income from SoftBank Vision Fund and Delta Fund
Operating income from SoftBank Vision Fund and Delta Fund was ¥808,792 million, compared with income of ¥236,427
million in the same period of the previous fiscal year. This was mainly due to the gains at SoftBank Vision Fund: realized
gain of ¥146,682 million recorded on the sale of Flipkart Private Limited (“Flipkart”) shares in September 2018 and unrealized gain of ¥693,201 million recorded due to an increase in the fair values of Uber Technologies, Inc. (“Uber”), which
was transferred from the Company to the Fund in the third quarter; Oravel Stays Private Limited (“OYO”); and WeWork
Companies, Inc. (“WeWork”).
For the investment in NVIDIA Corporation (“NVIDIA”), unrealized loss on valuation of ¥299,539 million was recorded
for the period due to a large fall in its share price in the third quarter, versus share price increase in the first and second
quarters. Conversely, derivative gain of ¥249,509 million was recorded as non-operating income in relation to collar transactions using NVIDIA shares (see “(h) Derivative Gain and Loss” for details). The amount derived by subtracting derivative
gain from unrealized loss on valuation for the period, before deduction of third-party interests, was ¥50,030 million.
Valuation Gain/Loss and Derivative Gain/Loss on NVIDIA Shares(Millions of yen)

Q1

Nine months ended December 31, 2018
Q2
Q3
Total

Unrealized gain/loss on valuation of investment

15,513

132,265(447,317)(299,539)

Operating income from SoftBank Vision Fund (A)15,513

132,265(447,317)(299,539)

Derivative gain/loss (B)After subtracting derivative gain/loss(before deducting third-party interests) (A) + (B)1,197(82,083)

330,395

249,509

16,71050,182(116,922)(50,030)

Note: In January 2019, SoftBank Vision Fund disposed its entire holding of NVIDIA shares. See “b. Income and loss arising fromthe SoftBank Vision Fund and Delta Fund business (Note 5)” under “(1) Income and loss arising from the SoftBank Vision
Fund and Delta Fund business included in the condensed interim consolidated statement of income” in “3. SoftBank Vision
Fund and Delta Fund business” in “(6) Notes to Condensed Interim Consolidated Financial Statements” in “3. Condensed
Interim Consolidated Financial Statements and Primary Notes” for details.

(d) Operating Income
As a result of (b) and (c), operating income increased ¥710,178 million (61.8%) year on year, to ¥1,859,007 million.

(e) Finance Cost
Finance cost increased ¥96,059 million (25.1%) year on year, to ¥479,396 million. Interest expenses increased ¥47,567
million at SoftBank Group Corp.3 This was mainly due to an increase in interest-bearing debt associated with the issuanceof foreign currency-denominated senior notes in September 2017 and the borrowings made by a wholly owned subsidiaryof the Company using Alibaba shares. The Company also recognized ¥24,051 million in conjunction with the partial repayment of a senior loan, as a result of the full amortization of the unamortized balance of an amortized cost.

5SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 2018

(Millions of yen)

Nine months ended December 31
2017
2018
(383,337)(479,396)

Change(96,059)

SoftBank Group Corp. 3(143,771)(191,338)(47,567)

Sprint(203,136)(220,347)(17,211)$(1,814) million$(1,984) million$(170) million

Finance Cost

Reference: In U.S. dollars(f) Income on Equity Method Investments

Income on equity method investments decreased ¥62,058 million (19.4%) year on year, to ¥257,533 million. This was
mainly due to a decrease of ¥55,785 million (16.7%) in income on equity method investments related to Alibaba, to¥277,471 million.
The Company applies the equity method to the financial statements of Alibaba on a three-month time lag. However, twotransactions deemed of significant materiality in the three-month period ended December 31, 2018 were reflected in net
income attributable to Alibaba on an IFRSs basis: 1) Koubei Holdings Limited becoming a subsidiary of Alibaba from anequity method associate, which resulted in an income from remeasuring its equity interest in the company, and 2) loss on
valuation of some investments.

Net Income Attributable to Alibaba and the Company’s Income on Equity Method Investments Related to Alibaba
Nine months ended September 304
2017
2018

ChangeAlibaba
Net income attributable to Alibaba (US GAAP)Net income attributable to Alibaba (IFRSs)

Million CNY

Million CNY

42,99836,522Million CNY(6,476)

Million CNY

Million CNY

Million CNY

66,69657,907(8,789)Nine months ended December 31
2017
2018

ChangeIncome on equity method investments related to Alibaba(Reference) Interest ratio as of September 30

29.41%

29.07%(0.34) pp

Million CNY

Million CNY

Million CNY

Income on equity method investments

19,736

16,905(2,831)(Reference) Effective exchange rate CNY/JPY¥16.89¥16.41¥(0.48)Million yen

Million yen

Million yen

333,256

277,471(55,785)

Income on equity method investments(g) Foreign Exchange Gain and Loss

Foreign exchange gain was ¥16,908 million, compared with a gain of ¥20,100 million in the same period of the previous
fiscal year.

(h) Derivative Gain and Loss
Derivative gain was ¥544,574 million, compared with a loss of ¥485,198 million in the same period of the previous fiscal
year. Due to a fall in the price of Alibaba shares from the previous fiscal year-end, derivative gain of ¥365,857 million wasrecorded in relation to a collar transaction embedded in the variable prepaid forward contract, compared with a loss of6

SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 2018

¥510,278 million in the same period of the previous fiscal year. Derivative gain of ¥249,509 million was also recorded at
SoftBank Vision Fund in relation to collar transactions utilizing NVIDIA shares.

(i) Gain and Loss from Financial Instruments at FVTPL
Gain from financial instruments at FVTPL was ¥48,964 million, compared with gain of ¥8,069 million in the same periodof the previous fiscal year. This gain arises from the change in the fair values of investments held by the Company outsideof SoftBank Vision Fund and Delta Fund. In the period, the gain was mainly attributable to an increase in the fair value of
an investment in GM Cruise Holdings, LLC (“GM Cruise”).
Investments such as Uber and GRAB HOLDINGS INC. (“Grab”) were transferred into SoftBank Vision Fund from theCompany in the third quarter. For these investments, the difference between the fair values at the previous fiscal year-end(or the acquisition cost during the period) and the transfer values to SoftBank Vision Fund was recorded in “(i) Gain and
Loss from Financial Instruments at FVTPL.” The difference between the transfer values and the fair values at the end of
the third quarter was recorded in “(c) Operating Income from SoftBank Vision Fund and Delta Fund.”(j) Changes in Third-party Interests in SoftBank Vision Fund and Delta Fund
Changes in third-party interests in SoftBank Vision Fund and Delta Fund amounted to an increase of ¥453,529 million,
compared with an increase of ¥108,163 million in the same period of the previous fiscal year. An increase in third-party
interest is reflected as a decrease in the Company’s income. The breakdown is as below:(Millions of yen)

Nine months ended December 31
2017
2018
Changes in third-party interests in SoftBank Vision Fund

(106,450)(448,651)

Attributable to investors entitled to fixed distribution(19,168)(61,861)

Attributable to investors entitled to performance-based distribution(87,282)(386,790)(1,713)(4,878)(1,713)(4,878)(108,163)(453,529)

Changes in third-party interests in Delta Fund
Attributable to investors entitled to fixed distribution
Changes in third-party interests in SoftBank Vision Fund and Delta Fund

Changes in third-party interests in SoftBank Vision Fund and Delta Fund indicate the sum of distributions to third-party
investors in proportion to their interests in fixed distributions and performance-based distributions. The distributions are
based on the gain and loss on investments at both Funds, net of management and performance fees payable to the Funds’
manager SBIA, the Company’s wholly owned subsidiary, and operating and other expenses of the Funds. See “(2) Thirdparty interests in SoftBank Vision Fund and Delta Fund” under “3. SoftBank Vision Fund and Delta Fund business” in “(6)Notes to Condensed Interim Consolidated Financial Statements” in “3. Condensed Interim Consolidated Financial Statements and Primary Notes” for details.
(k) Gain from Remeasurement Relating to Discontinuing the Use of the Equity Method
Gain from remeasurement relating to discontinuing the use of the equity method, which was not recorded in the same
period of the previous fiscal year, was ¥24,842 million. Because PT Tokopedia no longer qualified as an equity method

7SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 2018

associate in the second quarter, the Company recorded a gain through remeasurement of its retained interest in PT Tokopedia at fair value on the date of discontinuing the use of the equity method.
In the third quarter the investment in PT Tokopedia was transferred from the Company to SoftBank Vision Fund. The
difference between the carrying amount immediately before discontinuing the use of the equity method and the transfer
value to SoftBank Vision Fund was recorded in “(k) Gain from Remeasurement Relating to Discontinuing the Use of theEquity Method.” The difference between the transfer value and the fair value at the end of the third quarter was recordedin “(c) Operating Income from SoftBank Vision Fund and Delta Fund.”(l) Other Non-operating Income and Loss
Other non-operating loss was ¥9,069 million, compared with income of ¥43,913 million in the same period of the previous
fiscal year. See “16. Other non-operating income” under “(6) Notes to Condensed Interim Consolidated Financial Statements” in “3. Condensed Interim Consolidated Financial Statements and Primary Notes” for details.
(m) Income before Income Tax
As a result of (d) to (l), income before income tax increased ¥1,246,030 million (221.0%) year on year, to ¥1,809,834
million.
(n) Income Taxes
Income taxes were ¥235,377 million, compared with a credit of ¥638,941 million (profit) in the same period of the previous
fiscal year. The effective income tax rate of 13.0% was significantly lower than the statutory income tax rate of 31.46%.
This was mainly due to the use of loss carryforwards that had not been recognized as deferred tax assets at SoftBank Group
Japan Corporation, a wholly owned subsidiary of the Company, against the gain on disposal of a portion of its SoftBank
Corp. shares (33.50% of total shares issued), when SoftBank Corp. was listed in December 2018. Mainly due to this impact,income taxes were reduced by ¥405,577 million.
(o) Net Income
As a result of (m) and (n), net income increased ¥371,712 million (30.9%) year on year, to ¥1,574,457 million.
(p) Net Income Attributable to Owners of the Parent
After deducting net income attributable to non-controlling interests such as those of Yahoo Japan Corporation, Sprint, and
SoftBank Corp. from (o), net income attributable to owners of the parent increased ¥523,452 million year on year, to¥1,538,396 million.
The percentage of SoftBank Corp.’s net income attributable to non-controlling interests has increased since December
19, 2018, due to a decrease in the Company’s indirect ownership percentage of SoftBank Corp., from 99.99% to 66.49%.
(q) Comprehensive Income
Comprehensive income decreased ¥232,502 million year on year, to ¥1,408,776 million. Of this, comprehensive income
attributable to owners of the parent decreased ¥93,538 million, to ¥1,356,843 million.

8SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 2018

b. Results by Segment
The Company’s reportable segments are the components of its business activities for which decisions on resource allocation and assessment of performance are made. In accordance with changes in the Company’s organization based on its
unique organizational strategy, Cluster of No.1 Strategy, the Company revised its segment classifications for management
purposes in the first quarter, comprising six reportable segments: SoftBank, Sprint, Yahoo Japan, Arm, SoftBank Vision
Fund and Delta Fund, and Brightstar. The following is a summary of the reportable segments.
The main businesses and core companies of each reportable segment are as follows:
Main businesses
Segments

Core companies

Reportable segments
SoftBank· Provision of mobile communications services, sale of mobile
devices, provision of broadband and other fixed-line communications services in Japan· Sale of PC software, peripherals, and mobile device accessories
in Japan

SoftBank Corp.
Wireless City Planning Inc.
SB C&S Corp. (formerly SoftBank
Commerce & Service Corp.)

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

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
· Investment activities by Delta Fund

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

Brightstar· Distribution of mobile devices overseas

Brightstar Corp.

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

Fortress Investment Group LLC
Fukuoka SoftBank HAWKS Corp.
PayPay Corporation

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) ± 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 at SoftBank Vision Fund + gain and loss on investments at Delta Fund − operating
expenses
Adjusted EBITDA = segment income (loss) + depreciation and amortization ± adjustments relating to investments in SoftBank Vision Fund and Delta Fund (unrealized gain and loss on valuation of investments + effect of foreign exchange translation)
For historical principal operational data of each segment, their calculation methods, and definitions of terms, see the Data Sheeton the Company’s website at https://group.softbank/en/corp/irinfo/presentations/.

9SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 2018(a) SoftBank Segment
1. Net sales increased 3.9% yoy, to ¥2,777.5 billion, driven by an expansion of the telecom service customer
base and an increase in product sales and cloud services to enterprise customers.
2. Segment income increased 4.8% yoy, to ¥640.0 billion, mainly attributable to growth in telecom service
revenue.
3. SoftBank Corp. was listed on the Tokyo Stock Exchange First Section on December 19, 2018.
(Millions of yen)

Nine months ended December 31
2017
2018
PreviousNew
standards
standards

ChangeChange %2,674,172

2,777,522

103,350

3.9%(24,538)

Segment income

610,925

639,982

29,0574.8%(2,249)Depreciation and amortization

355,752

346,036(9,716)(2.7%)-

Other adjustments

13,584

81(13,503)(99.4%)-

Adjusted EBITDA

980,261

986,099

5,838

0.6%

(2,249)

Capital expenditures(acceptance basis)

221,455

263,624

42,16919.0%-

Net sales

Nine months ended
December 31, 2018
Impact of adopting
new standards

OVERVIEW
Facing the changing competitive environment of Japan’s telecommunications, SoftBank Corp. aims to strengthen
its foundation for medium- to long-term earnings growth and to generate stable free cash flow. Specifically, under the
Beyond Carrier Strategy, the company is working to increase the number of smartphone and broadband subscribers andto use the operational assets of telecommunications services to foster and expand new businesses.
SoftBank Corp.’s main strategic initiatives include:- Differentiating itself from other carriers by offering three brands – SoftBank, Y!mobile, and LINE MOBILE – tobetter address the various needs of customers and by providing free use of member benefits through collaboration
with Yahoo Japan Corporation.
- Expanding new businesses by collaborating with companies with cutting-edge technologies and services, especially with the investees of the SoftBank Group:· Jointly rolled out the office-sharing services business in Japan with WeWork through WeWork Japan GK.
· By utilizing the technology developed by One97 Communications Limited (PayTM), launched PayPay
smartphone payment service, which uses QR code, through PayPay Corporation, a joint venture with Yahoo
Japan Corporation.
WeWork Japan GK is an affiliate of SoftBank Corp. PayPay Corporation is a subsidiary of SoftBank Group Corp.

10

SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 2018

FINANCIAL RESULTS
Net sales increased ¥103,350 million (3.9%) year on year, to ¥2,777,522 million. This is mainly attributable to anincrease in the enterprise business, with solid sales in PCs and servers and the expansion of cloud service licenses, aswell as an increase in consumer telecom service revenue, driven by growth in SoftBank Hikari and smartphone subscribers.
Segment income increased ¥29,057 million (4.8%) year on year, to ¥639,982 million, mainly due to an increase inhigh-margin telecom service sales. Adjusted EBITDA increased ¥5,838 million (0.6%) year on year, to ¥986,099
million.
The adoption of the new standards had a negative impact of ¥24,538 million on net sales, and of ¥2,249 million on
both segment income and adjusted EBITDA.
Capital expenditures, on the basis of acceptance, increased ¥42,169 million (19.0%) year on year, to ¥263,624 million,
due to initiatives to expand service areas and improve the quality of LTE services.

The Differences in Figures of the Company’s Softbank Segment and Softbank Corp. Financial Results
There are differences in figures in the financial results of the SoftBank segment in the Company’s consolidated financial
statements and those disclosed by SoftBank Corp. There are three main reasons for the difference in operating incomein the same period of the previous fiscal year (a to c below), and mainly one reason for the difference in the period (cbelow).
a) Application of the new standards
The Company and SoftBank Corp. have adopted the new standards to their respective consolidated financial statements since the first quarter. The Company has not adjusted the presentation of information of the previous fiscal year,
while SoftBank Corp. has made such adjustments.
b) Brand royalty
Until the previous fiscal year, SoftBank Corp. made royalty payments to the Company for use of the SoftBank brandtrademark. SoftBank Corp. recorded a cost of ¥34,302 million for the payment in the same period of the previous fiscal
year; however, it was not recorded as a cost for the SoftBank segment in the Company’s consolidated financial statements, as it was eliminated as a transaction within the SoftBank segment. Royalty payment for use of the brand wereno longer incurred in the period, since SoftBank Corp. acquired partial usage rights of the SoftBank brand trademark,which are effective indefinitely in principle, and paid compensation for the rights in a lump sum in March 2018.
c) Depreciation and amortization
When the Company acquired Vodafone K.K. (currently SoftBank Corp.) in April 2006, the Company evaluated allof the assets and liabilities of Vodafone K.K. at fair value at the time, while SoftBank Corp., as an acquired company,
did not reevaluate the assets and liabilities at fair value in its consolidated statements of financial position. As a result,the non-current assets of SoftBank Corp. recorded in the Company’s consolidated financial statements are lower thanthose recorded in SoftBank Corp.’s consolidated financial statements. Consequently, the amount of depreciation andamortization of the Company’s SoftBank segment is lower than that of SoftBank Corp.
For further details on SoftBank Corp.’s operational and financial results, please refer to its website at:www.softbank.jp/en/corp/ir/

11

SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 2018(b) Sprint Segment
1. U.S. dollar-based quarterly wireless telecom service revenue in the third quarter increased year on year,
excluding the impact of adopting the new standards.
2. Segment income decreased 12.5% yoy, to ¥255.3 billion, impacted by one-time gains in the same periodof the previous fiscal year.
3. The merger with T-Mobile was approved by the Committee on Foreign Investment in the United States(CFIUS). Review by the Federal Communications Commission (FCC) and other regulatory agencies isstill underway.
(Millions of yen)

Nine months ended December 31
2017
2018
PreviousNew
standards
standards
Net sales

Nine months ended
December 31, 2018
ChangeChange %Impact of adopting
new standards

2,722,153

2,794,447

72,294

2.7%

43,836

291,841

255,318(36,523)(12.5%)

74,828Segment income

708,307784,01375,706

10.7%

-

5

(61,323)40,800102,123--

Adjusted EBITDA

938,825

1,080,131

141,306

15.1%

74,82824,32325,159

836

3.4%

393

22,070
355
2,608
6,329
(547)

22,221
(633)
2,305
7,061
365

151
(988)
(303)
732
912

0.7%
(11.6%)
11.6%
-

(280)
673
-

Adjusted EBITDA

8,390

9,731

1,341

16.0%

673

Reference: Disclosed by Sprint (US GAAP)
Network capital expenditures (cash basis)

2,539

3,814

1,275

50.2%

-

Adjusted free cash flow

1,185

(375)

(1,560)--Depreciation and amortization
Other adjustments

U.S. dollar-based results (IFRSs)
Net sales
Cost of sales and selling, generaland administrative expenses
Other operating income (loss)
Segment income
Depreciation and amortization
Other adjustments5(Millions of U.S. dollars)(Millions of U.S. dollars)

OVERVIEW
Sprint is working to expand its net sales by increasing the number of postpaid and prepaid subscribers and stabilizing
its ARPU. To achieve this goal, Sprint has continued its effort to further improve network quality and increase customer
value by leveraging its ample spectrum holdings. In the fiscal year, Sprint expects to further increase network cash
capital expenditures to improve its network quality. At the same time, Sprint continues its efforts to enhance profitability
by further improving operational efficiency.

12SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 2018

Merger of Sprint and T-Mobile
On April 29, 2018, Sprint and T-Mobile US Inc. (“T-Mobile”) entered into a definitive agreement to merge in an allstock transaction (the “Transaction”). Upon completion of the Transaction, the combined company is expected to become an equity method associate of the Company with an approximately 27.4% shareholding, and Sprint will no longer
be a subsidiary of the Company. The Transaction is subject to Sprint and T-Mobile stockholder approvals, regulatory
approvals, and other customary closing conditions. To obtain regulatory approvals for the merger, Sprint and T-Mobile
completed the Hart-Scotto-Rodino filing with the Department of Justice (DOJ). Furthermore, the parties filed merger
applications with the Federal Communications Commission (FCC) and the Committee on Foreign Investment in the
United States (CFIUS). As of the end of the third quarter, the Transaction received clearance from CFIUS, while review
is still underway by DOJ, FCC, and other regulatory agencies. The Transaction is expected to close no later than thefirst half of 2019.
FINANCIAL RESULTS
Results in U.S. dollars
Net sales increased $836 million (3.4%) year on year, to $25,159 million. Of the net sales increase, $393 million
comes from adopting the new standards, with a negative impact on telecom service revenue and a positive impact onequipment revenue. Excluding these impacts, net sales increased $443 million year on year. Although telecom service
revenue fell mainly due to a decrease in wireline revenue, equipment revenue increased due to an increase in equipment
rentals revenue.
Of telecom service revenue, excluding the negative impact of adopting the new standards, quarterly wireless telecom
service revenue achieved year-on-year growth in both the second quarter and the third quarter. The customer base has
been expanding steadily, and postpaid ARPU has been stabilizing.

Segment income decreased $303 million (11.6%) year on year, to $2,305 million.
Although net sales increased $443 million year on year (excluding the impact of adopting the new standards) as
mentioned above, operating expenses (cost of sales and selling, general and administrative expenses) increased $431
million year on year (excluding the impact of adopting the new standards), mainly due to an increase in depreciation
expenses following an increase of leased device assets.
Other operating income and loss deteriorated $988 million year on year, due to the absence of one-time gains recognized in the same period of the previous fiscal year, such as a gain on spectrum license exchange. As a result, although
the adoption of the new standards had a positive impact of $673 million on segment income ($393 million for theincrease in net sales and $280 million for the push-down of operating expenses), segment income decreased year on
year.
Adjusted EBITDA increased $1,341 million (16.0%) year on year, to $9,731 million, which included the same amountof the positive impact as on segment income from the adoption of the new standards.
Adjusted free cash flow decreased $1,560 million year on year, to negative $375 million (as disclosed by Sprint,
US GAAP). An increase in operating cash flows was more than offset by an increase in expenditures for the acquisitionof equipment for the 5G network.

13

SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 2018

Results in yen
In yen terms, net sales increased ¥72,294 million (2.7%) year on year to ¥2,794,447 million, and segment income decreased ¥36,523 million (12.5%) to ¥255,318 million. Adjusted EBITDA increased ¥141,306 million (15.1%), to¥1,080,131 million.

OPERATIONS
Cumulative Subscriber6(Thousands)

December 31, 2018

Change fromMarch 31, 2018

32,605486

26,787(26)

Prepaid

8,846

(143)

Wholesale and affiliate

13,044

(473)

Total

54,495(130)

Postpaid
Postpaid phone

Net Additions7 (Excluding Special Factors)(Thousands)

Three months ended
December 31, 2018

YoY Change

309

53

(26)

(210)

Prepaid

(173)

(236)

Wholesale and affiliate

(88)
48

(154)
(337)

Postpaid
Postpaid phone

Total

Postpaid phone subscriber net loss was mostly a result of lower gross additions associated with the introduction of lesspromotional service pricing in July 2018 and higher churn as more customers rolled off promotional offers. Postpaid net
additions included 107 thousand subscribers who migrated from the prepaid subscriber base.
Churn Rate (Postpaid)
Three months ended
December 31, 2018

YoY Change

Postpaid phone churn rate

1.84%

0.13 pp deterioration

Postpaid churn rate

1.85%

0.05 pp deterioration

14

SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 2018

ARPU (Postpaid)
Three months ended
December 31, 2018

YoY Change

Postpaid phone ARPU

$50.01$(1.25)

Postpaid ARPU

$43.64$(1.49)Postpaid ARPU decreased $1.49 year on year due to the adoption of new revenue standards, which had a $0.96 negative
impact, and to the increase in sales of smartwatches and automotive data devices, which generally have a lower ARPU
than phones.
For more information on Sprint’s US GAAP-based financial results and business operations, please refer to the investor
relations section of its website at: investors.sprint.com/.

(c) Yahoo Japan Segment(Millions of yen)

Nine months ended December 31
2017
2018

ChangeChange %Net sales

645,406

702,871

57,4658.9%

Segment income

140,486

115,328(25,158)(17.9%)

Depreciation and amortization

30,87040,493

9,623

31.2%

Other adjustments(7,896)(3,751)

4,145-

Adjusted EBITDA

163,460

152,070(11,390)(7.0%)

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/.

15

SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 2018(d) Arm Segment
1. Net sales decreased 4.1% yoy- Licensing revenue (U.S. dollar-based) decreased 27.7% yoy primarily due to the delay in signing new contracts
in China in the first half of the fiscal year.
- Royalties revenue (U.S. dollar-based) increased only 4.0% yoy due to a slowdown in global smartphone demand,
especially in China.
2. Steady reinforcement of R&D capacity over medium to long term
- Arm launched further processors developed specifically for the automotive market, a direct result of the strategy
of accelerated R&D over the past two years.
- Arm continuously evaluates the mix of R&D projects in which it is investing to ensure that ROI is maximized.
(Millions of yen)

Nine months ended December 31
2018
2017

ChangeChange %Net sales

152,422

146,119(6,303)(4.1%)

Segment income(21,865)

137,205

159,070-

Depreciation and amortization
Gain relating to loss of control
over subsidiaries

46,15849,395

3,237

7.0%

-

(176,261)(176,261)-

Adjusted EBITDA

24,293

10,339(13,954)(57.4%)

Note: Depreciation and amortization includes amortization expenses of ¥43,383 million for the period and ¥40,672 million for thesame period of the previous fiscal year. These expenses are related to intangible assets recognized in the purchase priceallocation at the time of the acquisition of Arm.

OVERVIEW
Arm’s operations are primarily the licensing of semiconductor intellectual property (IP), including the designs of energyefficient microprocessors and associated technologies. Since becoming part of the Company, Arm has been accelerating
investment in research and development by hiring more engineers. With the expansion of its engineering capability, Armintends to develop 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).
In 2018, Arm announced several new products that are a direct result of the accelerated R&D that Arm has executedover the past two years. This has included:- Pelion IoT platform that enables enterprises to seamlessly and securely connect and manage IoT devices anddata at any scale- Two new processors developed specifically for the safety-critical applications within automotive applications(Cortex-A76AE and Cortex-A65AE)- Neoverse family of processors developed for server and networking application. Amazon Web Services Inc.
announced that the first generation of Neovese technologies will be used in their own-built Graviton server chips,
which would replace the previous generation of chips with a significant cost saving for its customers.
Net sales of the segment comprise (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.

16SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 2018

FINANCIAL RESULTS
Net sales decreased ¥6,303 million (4.1%) year on year, to ¥146,119 million. On a U.S. dollar basis, technology
licensing revenue decreased 27.7% year on year. The novation process of existing contracts in China from Arm to Arm
Technology (China) Co., Ltd. (“Arm China,” see “Establishment of Joint Venture for the China Business” below), which
followed the establishment of a joint venture for the China business, resulted in a delay in signing new contracts andconsequently a lower-than-usual revenue received from Arm China in the first half of the fiscal year. The novation
process concluded in the third quarter, and quarterly technology licensing revenue received from Arm China has restored
to the normal level, as expected.
Technology royalty revenue, on a U.S. dollar basis, increased 4.0% year on year. The growth rate has slowed down
due to a weakening in global smartphone demand, especially in China. Royalty revenue growth is expected to be impacted by the slowdown in smartphone demand, but the growth rate is still expected to increase in the medium- to longterm as Arm gains share in secular growth markets such as networking, servers, and IoT.

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)Nine months ended December 31, 2017
Q1
Q2
Q3
Total

Nine months ended December 31, 2018
Q1
Q2
Q3
Total

Technology
licensing

149

123

190

462

85

124

125

334

Technology
royalties

250

271

297

818

261

285

305

851

Software andservices

29

28

33

90

35

47

56

138

Total net sales

428

422

520

1,370

381

456

486

1,323

Segment income was ¥137,205 million, compared with loss of 21,865 million in the same period of the previous
fiscal year. This was mainly attributable to the recognition of gain relating to the loss of control over subsidiaries of¥176,261 million as other operating income, as a result of Arm China becoming an associate accounted for using theequity method from a subsidiary.
In the period, Arm continued to increase its R&D capacity, which included hiring more R&D engineers and support
staff. As a result, operating expenses (cost of sales and selling, general and administrative expenses) increased ¥10,888
million year on year. Arm’s head count increased net 84 people (1.4%) from the previous fiscal year-end, despite theexclusion of 341 employees of Arm China from the head count upon June 26, 2018.
Arm will continue to strengthen its R&D capacity to build the technologies needed to meet the opportunities presented
by machine learning, IoT, autonomous vehicles, among others. In the meantime, to ensure that ROI is maximized, it
will also continuously evaluate the mix of R&D projects in which it is investing, as well as the locations of the engineering teams. From time to time, some engineers and project team members are transferred onto other projects or
locations. During the third quarter, Arm restructured some R&D projects and office locations, and consequently Arm’s
head count declined slightly in the third quarter. Although Arm's head count may grow at a slower rate in the near-term,

17SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 2018

it is expected that Arm's head count growth will accelerate in the medium term, as Arm will continue to increase its
R&D capacity through hiring engineers.
Adjusted EBITDA decreased ¥13,954 million (57.4%) year on year, to ¥10,339 million.

Establishment of Joint Venture for the China Business
On June 26, 2018, Arm sold 51% of its equity interest in its wholly owned Chinese subsidiary, Arm China, for$845 million to entities representing certain institutional investors and certain of Arm’s ecosystem partners inorder to form a joint venture for Arm’s semiconductor technology IP business in China. As a result of this transaction, Arm China is no longer considered as a subsidiary of the Company and has become an associate accounted
for using the equity method. Accordingly, the Company recorded gain relating to loss of control over subsidiariesof ¥176,261 million.
Arm will continue to receive a significant proportion of all license, royalty, software, and service revenues
arising from Arm China’s licensing of Arm semiconductor products, and record them as net sales. Arm China’s
labor costs are no longer included after it became an associate. However, Arm’s business outside of China willcontinue to utilize services provided by Arm China employees, for which Arm will pay as if Arm China was a
subcontractor and record the cost in operating expenses. The net impact on segment income in the medium termis expected to be minor.
OPERATIONS
Licensing
Licenses signed
October 1 to December 31, 2018

Cumulative number of licenses signed
December 31, 2018

Classic (Arm7, Arm9, Arm11)-

499

Cortex-A

8353

Cortex-R

3

103

Cortex-M

21

525

Mali

10

182

Number of processor licenses signed

42

1,662

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

Arm signed 42 processor licenses during the third quarter, including four licenses for new technologies that Arm has not
yet announced, reflecting solid demand for Arm’s latest technology. Of the customers signing new licenses, six were
new customers purchasing their very first Arm processor license. The customers who signed licenses with Arm in thethird quarter intend to use Arm technology in a very broad range of end markets, including smartphones, smartcards andlow-power AI applications.

18SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 2018

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 September 30, 2018, 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.

Jul 1 toSep 302017
Oct 1 toDec 31

Jan 1 toMar 31

Apr 1 toJun 302018
Jul 1 toSep 30

5.7 billion

5.8 billion

5.5 billion

5.6 billion

6.2 billion

17%

14%

17%

10%

9%

Classic (Arm7, Arm9, Arm11)

17%

16%

14%

10%

9%

Cortex-A

17%

19%

20%

21%

18%

Cortex-R

7%

7%

8%

8%

10%

Cortex-M

59%

58%

58%

61%

63%

Royalty units as reported byArm’s licensees
Growth rate (yoy)Breakdown by processor family

Arm’s licensees reported shipments of 6.2 billion Arm-based chips for the three-month period ended September 30,
2018. With continuing demand for Arm-based chips in growth markets such as IoT and automotive, Arm is on track toachieve its goal of 100 billion Arm-based chips reported as shipped in the four years following the acquisition by theCompany, from 2017 to 2020 inclusive (38.6 billion from January 2017 to September 2018).
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.

19

SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 2018(e) SoftBank Vision Fund and Delta Fund Segment
1. Segment income of ¥808.8 billion
 Gain and loss on investments at SoftBank Vision Fund of ¥838.7 billion- Valuation gain of ¥693.2 billion from the increase in the fair values of Uber, OYO, WeWork,1 and other investments- A fall in NVIDIA’s share price reduced valuation gain; however, the majority was offset by derivative gain (nonsegment income) from hedging with collar transactions.
- Realized gain of ¥146.7 billion from selling its entire holding of Flipkart shares
2. Progress of investments at SoftBank Vision Fund
 Acquired 49 investments to date at cost totaling $45.5 billion, with fair value amounting to $55.3 billion (excluding exited investments)8- Acquired nine investments, including Uber and Grab, from the Company totaling $10.4 billion in the third quarter Total committed capital of $97.0 billion
OVERVIEWSoftBank Vision Fund began its operation in 2017. The Fund aims to conduct large-scale, long-term investment incompanies and platform businesses that have the potential to bring about next-generation innovation. The Fund is managed by SBIA, the Company’s wholly owned U.K. subsidiary registered at The Financial Conduct Authority. The segment results include the results of the investment and operational activities of SoftBank Vision Fund and Delta Fund,which is also managed by SBIA.

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

Delta Fund

Major limited partnership

SoftBank Vision Fund L.P.

SB Delta Fund (Jersey) L.P.

Total committed capital

97.0 *1(Billions of U.S. dollars)

General partner

Investment period
Minimum Fund life

6.0
*2

SoftBank Group Corp.: 33.1
Third-party investors: 63.9 *3
SVF GP (Jersey) Limited(The Company’s wholly owned overseas
subsidiary)
Until November 20, 2022
(in principle)
Until November 20, 2029
(in principle)

SoftBank Group Corp.: 4.4
Third-party investors: 1.6 *3
SB Delta Fund GP (Jersey) Limited(The Company’s wholly owned overseas
subsidiary)
Until November 20, 2022
(in principle)
Until September 27, 2029
(in principle)

Notes:
1. SoftBank Vision Fund completed a total of two closings in the third quarter. As a result, SoftBank Vision Fund accepted the participation of new limited partners and acquired additional committed capital totaling $5.3 billion.
2. The Company’s committed capital to SoftBank Vision Fund includes approximately $8.2 billion of an obligation to be satisfied byusing Arm Limited shares and $5.0 billion earmarked for use in an incentive scheme related to SoftBank Vision Fund.
3. A portion of the capital committed by third-party investors in both SoftBank Vision Fund and Delta Fund has been committed inconsideration of the total capital committed for both separate Funds; hence, the total committed capital and remaining committed
capital for each separate Fund will change according to the status of contribution by third-party investors in each Fund.

20

SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 2018

FINANCIAL RESULTS(Millions of yen)

Nine months ended December 31
2017
2018

ChangeChange %Gain and loss on investments at SoftBank Vision Fund
Realized gain and loss of investments
Unrealized gain and loss on valuation of investments
Interest and dividend income from investments
Effect of foreign exchange translation
Gain and loss on investments at Delta Fund
Unrealized gain and loss on valuation of investments
Operating expenses

254,852
251,108
3,744(18,425)

838,684
146,682
693,201
3,092(4,291)
95
95(29,987)

583,832
146,682442,093(652)(4,291)
95
95(11,562)229.1%
176.1%(17.4%)
62.7%

Segment income
Depreciation and amortization
Adjustments relating to investments in SoftBank Vision
Fund and Delta Fund
Unrealized loss (gain) on valuation of investments
Change in amount on valuation for the fiscal year
Transfer to realized gain and loss *1
Effect of foreign exchange translation

236,427-

808,79248

572,36548

242.1%-(251,108)(251,108)-(693,296)(836,244)
142,948
4,291(442,188)(585,136)
142,948
4,291

176.1%
233.0%-

Adjusted EBITDA(14,681)

119,835

134,516-

Note: The segment’s results are calculated as follows:
Segment income =gain and loss on investments at SoftBank Vision Fund + gain and loss on investments at Delta Fund - operating expenses
Adjusted EBITDA =segment income (loss) + depreciation and amortization ± adjustments relating to investments in SoftBank Vision Fund and Delta
Fund (unrealized gain and loss on valuation of investments + effect of foreign exchange translation)
Note:
1. Cumulative valuation gain and loss on Flipkart shares that was recorded before the second quarter

Segment income was ¥808,792 million, compared with ¥236,427 million in the same period of the previous fiscal
year, of which gain on investments at SoftBank Vision Fund was ¥838,684 million. This included realized gain on
investments of ¥146,682 million and unrealized gain on valuation of investments of ¥693,201 million.
Realized gain on investments at SoftBank Vision Fund was recognized following the completion of the sale of Flipkart
shares to WAL-MART INTERNATIONAL HOLDINGS, INC. in September 2018. The amount was recognized basedon the sales value of approximately $4.0 billion, net of amount deposited in escrow account,9 etc. Capital gains on
investments in entities that operate businesses in India are subject to tax in India. Consequently, outside segment income,current taxes of ¥64,892 million were recorded for the aforementioned realized gain in Flipkart, which mainly operates
businesses in India. The sale of Flipkart shares occurred within 24 months of making the investment, and therefore wastaxed at 43.68%, the Indian short-term capital gains tax rate.
Unrealized gain on valuation of investments at SoftBank Vision Fund for the period was recognized due to an increasein the fair value from the transfer value of the investment in Uber acquired from the Company in the third quarter, andan increase in the fair values of other investments such as OYO and WeWork. For the investment in NVIDIA, unrealized
loss on valuation of ¥299,539 million was recorded for the period due to a large fall in its share price in the third quarter,
versus share price increases in the first and second quarters.
Conversely, derivative gain of ¥249,509 million was recorded as non-operating income in relation to collar transactions using NVIDIA shares. The amount derived by subtracting derivative gain from the aforementioned unrealized loss

21

SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 2018

on valuation for the period, before deduction of third-party interests, was ¥50,030 million.
Adjusted EBITDA was ¥119,835 million, compared with negative ¥14,681 million in the same period of theprevious fiscal year.

Capital Deployment
As of December 31, 2018
(Billions of U.S. dollars)
*1

Total

The Company

Third-party investors

Committed capital
SoftBank Vision Fund
Delta Fund

97.0
6.0

33.1
4.4

63.9
1.6

Contributions from limited partners10
SoftBank Vision Fund
Delta Fund

45,2
5.1

15.3
3.7 1129.9
1.4

Non-recallable contribution12
SoftBank Vision Fund

2.5

0.9

1.6

Remaining committed capital
SoftBank Vision Fund
Delta Fund13

49.3
0.9

16.9
0.7

32.4
0.2

Note:
1. The Company’s committed capital includes approximately $8.2 billion of obligation to be satisfied by using 24.99% of Arm Limited shares. The obligation was entirely satisfied by the end of the third quarter, resulting in SoftBank Vision Fund holding all of
the applicable Arm Limited shares. The Company’s committed capital also includes $5.0 billion that is earmarked for use in an
incentive scheme related to SoftBank Vision Fund.

Investees of SoftBank Vision Fund (as of December 31, 2018; excluding exited investments)
Cumulative acquisition cost of investments: $45.5 billion
Total fair value of investments: $55.3 billion
SectorName (in alphabetical order)

Semiconductors*
AI, big data, robotics, and VR*◎

On-demand economy

◎◆
◎◆
◎
◎◆
◎

Arm Limited
NVIDIA Corporation
Brain Corporation
HealthKonnect Medical and Health Technology Management Company Limited (Ping An Medical and Healthcare)
Improbable Worlds Limited
Light Labs, Inc.
MapBox Inc.
Nauto, Inc.
OSIsoft LLC
Petuum Holdings Ltd.
Doordash, Inc.
Full Truck Alliance Co. Ltd
GRAB HOLDINGS INC. (Grab)
Local Services Holding Limited (Alibaba Local Services)22SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 2018

SectorName (in alphabetical order)
◎
◆
◎◆

◎
◎
E-commerce
◎
◎◆
◎
◎◆
◎
Financial services

◎◆
◎◆
◎
*

Enterprise, media, and advertisingLife sciences

◎
◎
◎

◎◆
*
◎

◎◆
Smart cities◎
Clean tech

Loggi Technology International
Oravel Stays Private Limited (OYO) (and its one affiliate)
Ping An Healthcare and Technology Company Limited
Uber Technologies, Inc. (Uber)
Wag Labs, Inc.
WeWork Companies Inc. (and its three affiliates)
Zume, Inc.
Zuoyebang Education Limited
Auto1 Group GmbH
Brandless, Inc.
Coupang LLC
Fanatics Holdings, Inc.
Globality, Inc.
Grofers International Pte. Ltd.
OpenDoor Labs, Inc.
PT Tokopedia
Kabbage, Inc.
One97 Communications Limited (PayTM）
OneConnect Financial Technology Co., Ltd.
Zhongan Online P&C Insurance Co., Ltd.
AutomationAnywhere, Inc.
Bytedance Ltd.
Cohesity, Inc.
Slack Technologies, Inc.
Urban Compass, Inc. (Compass)
10x Genomics, Inc.
Guardant Health, Inc. (and its one affiliate)
Relay Therapeutics, Inc.
Roivant Sciences Ltd.
Vir Biotechnology, Inc.
Zymergen, Inc.
Katerra Inc.
View Inc.
Plenty United Inc.
One other investment

Total of 49 investments◎: New investments during the period◆: Investments acquired from sale by the Company (See “INVESTMENTS ACQUIRED FROM SALE BY THE COMPANY” on the following page)*: Listed securities
Note: SoftBank Vision Fund made some investments through investment holding entities that are subsidiaries, but not wholly owned
subsidiaries, of the Fund. Regardless of the ownership percentage of SoftBank Vision Fund, all investments made through the investment holding entities are calculated as investments made by SoftBank Vision Fund. Some of the subsidiaries of SoftBank Vision Fundhave investors other than the Fund. Of the total fair values of investments by SoftBank Vision Fund at the end of the third quarter, $1.7
billion belongs to those investors.

23

SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 2018

INVESTMENTS ACQUIRED FROM SALE BY THE COMPANY
In addition to direct purchase, some investments of SoftBank Vision Fund are acquired from sale by the Company, but
only if they are in accordance with the Fund’s investment eligibility criteria. There are two types of investments that
could be sold to the Fund: (A) Investments that were acquired by the Company on the premise of offering the investment
to SoftBank Vision Fund and that were in accordance with the investment eligibility criteria of the Fund at the time ofacquisition (“Bridge Investments”) and (B) other investments. Examples of (B) include investments that were madewithout the premise of offering the investment to the Fund at the time of acquisition, or, investments that were madewith the premise of offering the investment to the Fund but were not in accordance with the investment eligibility criteriaof the Fund at the time of acquisition and therefore require consent from the limited partners for selling to the Fund.
The Company recognizes that the transfer of such investments is agreed, at the timing when consent from the investment committee and other bodies (and certain limited partners if applicable) at SoftBank Vision Fund and approvals
from relevant regulatory authorities are obtained. Sales of these investments are made at the fair value at the time theCompany made its decision at its applicable authority to offer the transfer, and this value will be the acquisition cost for
SoftBank Vision Fund. These investments are presented as investments at the Fund in the Company’s consolidated
financial statements, after the Company recognizes that the transfer is agreed.
As for investments transferred during the period, the differences between the carrying amounts at the beginning of
the period (or the acquisition cost during the period) and the sale values were recorded in non-operating income of theCompany’s consolidated statement of income, while the changes in fair values from the sale values (the acquisition
value for the Fund) were recorded in segment income of the SoftBank Vision Fund and Delta Fund segment. The saletransactions for the transfer between the Company and SoftBank Vision Fund have been eliminated in the Company’s
consolidated financial statements.
Investments Acquired from Sale by the Company to SoftBank Vision Fund in the third quarterIn the third quarter, the Company sold the investments shown below to SoftBank Vision Fund. The sale price is basedon the fair value at the time the Company made its decision at its applicable authority to offer the transfer.
(Billions of U.S. dollars)

Acquisition value
by the Company

Sale value by the Company to SVF(Acquisition value by SVF)

Uber Technologies, Inc. (Uber)
GRAB HOLDINGS INC. (Grab)
Others

7.7
1.2
1.0

7.7
1.5
1.2

Total of 9 investments

9.9

10.4

Investees

Note: The above table presents main investments whose sale value were material, in order of the amount of value.

In addition, as of the end of the third quarter, the investment in Xiaoju Kuaizhi Inc. (DiDi), acquired at $5.9 billion
and currently held by the Company, has been agreed to be sold to SoftBank Vision Fund for $6.8 billion.
Investee of Delta Fund (as of December 31, 2018)
Cumulative acquisition cost of investments: $5.0 billion
Total fair value of investments: $5.0 billion
SectorName

On-demand economy

Xiaoju Kuaizhi Inc. (DiDi)

24

SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 2018(f) Brightstar Segment(Millions of yen)

Nine months ended December 31
2017
2018

ChangeChange %Net sales

783,669

812,471

28,802

3.7%

Segment income(52,129)(9,222)

42,907-

Depreciation and amortization

4,449

4,991

542

12.2%

Other adjustment

50,497-(50,497)-

Adjusted EBITDA

2,817(4,231)(7,048)-(g) Other and Reconciliation(Millions of yen)

Net sales
Segment income
Depreciation andamortization
Other adjustment
Adjusted EBITDA

Other58,116(19,507)
5,637
9,912
(3,958)Nine months ended December 31
2017
2018
Reconciliation
Other Reconciliation(224,664) 158,696(223,674)(37,349) (39,881)(48,515)
1,202
1,427
(34,720)

28,674
3,859(7,348)611(47,904)

ChangeOther Reconciliation
100,580990(20,374)(11,166)
23,037(6,053)(3,390)(591)(1,427)(13,184)

Other segment loss was ¥39,881 million, compared with loss of ¥19,507 million in the same period of the previous fiscal
year. This was mainly due to operating loss of ¥21,135 million at PayPay Corporation, which is engaged in smartphone
payment services in Japan, as a result of its proactive measures to increase the number of users and stores where its
services are usable.

25

SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 2018

(2) Overview of Financial Position
1. Disposal of 33.50% of SoftBank Corp. shares Received proceeds of ¥2.3 trillion.
 Capital surplus increased ¥1.2 trillion; ratio of equity attributable to owners of the parent increased 5.1 percentage
points, to 21.7%.
2. Status of investments
 Balance of investments from SoftBank Vision Fund of ¥6.0 trillion, up ¥3.7 trillion from the previous fiscal
year-end- 11 investments totaling $11.3 billion were transferred from the Company in the period (including Uber andGrab1); an investment in DiDi has been agreed to be transferred at $6.8 billion.
- The fair values of investments increased.
 Balance of investment securities (investments outside the Fund) of ¥990.7 billion, down ¥1.7 trillion fromthe previous fiscal year-end(Millions of yen)March 31, 2018

December 31, 2018

ChangeChange %Total assets

31,180,466

36,459,477

5,279,011

16.9%

Total liabilities

24,907,444

27,173,088

2,265,644

9.1%

Total equity

6,273,022

9,286,389

3,013,367

48.0%

Reference: Exchange rate at the end of the period used for translations
USD / JPY

¥106.24¥111.00

¥4.76

4.5%

GBP / JPY

¥148.84¥140.46¥(8.38)(5.6%)(a) Current Assets(Millions of yen)March 31, 2018

December 31, 2018

ChangeCash and cash equivalents
Trade and other receivables
Other financial assets
Inventories
Other current assets

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

5,304,367
2,412,906
611,502392,850
319,056

1,969,717
98,55392,05830,809(25,318)

Total current assets

6,874,862

9,040,681

2,165,819

Primary components of the change
Components and balance

Changes from the previous fiscal year-end and main reasons

Cash and cash equivalents¥5,304,367 million¥1,969,717 million increase
Proceeds of ¥2,349,832 million were received from the disposal of a portion of
SoftBank Corp. shares.

26

SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 2018(b) Non-current Assets(Millions of yen)March 31, 2018

December 31, 2018

Change3,856,847
4,302,553

4,087,429
4,232,295

230,582(70,258)

6,784,550

6,887,784

103,234

Property, plant and equipment
Goodwill
Intangible assets
Costs to obtain contracts-

330,570

330,570

Investments accounted for using the equity method

2,328,617

2,718,708

390,091

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

2,827,784

6,508,438

3,680,654

SoftBank Vision Fund
Delta Fund
Investment securities14
Other financial assets
Deferred tax assets
Other non-current assets

2,296,584
531,200
2,660,115
676,392
647,514221,232

5,953,314
555,124
990,661
960,544484,028
218,339

3,656,730
23,924(1,669,454)
284,152(163,486)(2,893)

Total non-current assets

24,305,604

27,418,796

3,113,192

Primary components of the change
Components and balance

Changes from the previous fiscal year-end and main reasons

Property, plant and equipment¥4,087,429 million¥230,582 million increase
Capital expenditures for the 5G network and leased mobile devices for customers increased at Sprint. Meanwhile, telecommunications equipment was regularly depreciated at SoftBank Corp.

Goodwill¥4,232,295 million¥70,258 million decrease
Goodwill related to Arm decreased due to a stronger yen against the British
pound.

Intangible assets¥6,887,784 million¥103,234 million increase· FCC licenses increased ¥192,913 million due to a weaker yen against the U.S.
dollar.
· Customer relationships decreased ¥66,669 million due to regular amortization
at Sprint and Arm.
· Technologies decreased ¥55,011 million due to regular amortization and astronger yen against the British pound.

Costs to obtain contracts¥330,570 million

Costs to obtain contracts at Sprint and SoftBank Corp. were newly recorded dueto the adoption of the new standards.

Investments accounted forusing the equity method¥2,718,708 million¥390,091 million increase
Alibaba’s consolidated carrying amount increased due to the recording of income on equity method investments. A consolidated carrying amount of ¥83,784
million was newly recorded as Arm China became an equity method associate.

27

SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 2018

Components and balance

Changes from the previous fiscal year-end and main reasons

Investments from SoftBank
Vision Fund and Delta Fund
accounted for using FVTPL¥6,508,438 million

SoftBank Vision Fund: ¥3,656,730 million increase· 11 investments totaling $11.3 billion, including Uber and Grab,1 were transferred from the Company in the period. An investment in DiDi has been
agreed to be transferred at $6.8 billion.
· An increase in the fair value of the investment in Uber was recognized from its
transfer price, and the fair values of other investments such as OYO and WeWork also increased. On the other hand, the fair value of NVIDIA decreased
due to a fall in its share price.
· The Fund sold Flipkart shares.

Investment securities¥990,661 million¥1,669,454 million decrease· Investments including Uber, Grab, and DiDi (total carrying amounts of¥1,827,075 million at the previous fiscal year-end) that were transferred oragreed to be transferred to SoftBank Vision Fund were reclassified as investments from SoftBank Vision Fund and Delta Fund accounted for using
FVTPL.
· New investments including GM Cruise were made by a wholly owned subsidiary of the Company.

28

SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 2018(c) Current Liabilities(Millions of yen)March 31, 2018

December 31, 2018

Change3,217,405
1,485,851

4,256,689
1,488,586

1,039,284
2,735

Short-term borrowings
Current portion of long-term borrowings3
Current portion of corporate bonds
OthersSoftBank Corp.

771,275
214,747
399,829
100,000
803,055

395,850
301,678
699,058
92,000894,906(375,425)
86,931

Current portion of long-term borrowings
Current portion of lease obligations
OthersSprint393,916
393,282
15,857364,245

481,387
403,801
9,718
399,092

87,471
10,519(6,139)34,847

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

164,466
190,396
9,383
397,095

163,817
225,654
9,621
629,337(649)
35,258238
232,242

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

83,952
313,143
167,159

629,337
844,768(83,952)
316,194
677,609

Current portion of financial liabilities relating to sale of shares by variable prepaid forward contract
Others
Deposits for banking business

167,159
684,091

727,776
116,992
745,735

727,776(50,167)
61,644

Third-party interests in SoftBank Vision Fundand Delta FundInterest-bearing debt
SoftBank Group Corp.3

299,229(8,000)91,851

40,713-(40,713)

SoftBank Vision Fund
Delta Fund
Trade and other payables
Derivative financial liabilities
Other financial liabilities
Income taxes payables
Provisions
Other current liabilities

39,193
1,520
1,816,010
96,241
1,646
147,979
65,709658,961

1,862,928
417,679
10,579
485,385
40,047728,181(39,193)(1,520)46,918321,438
8,933
337,406(25,662)
69,220Total current liabilities

6,728,755

8,547,223

1,818,468

29

SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 2018

Primary components of the change
Components and balance

Changes from the previous fiscal year-end and main reasonsInterest-bearing debt
¥4,256,689 million¥1,039,284 million increase

SoftBank Group Corp.
¥1,488,586 million¥2,735 million increase· Short-term borrowings decreased ¥375,425 million due to repayments.
· Current portion of corporate bonds increased ¥299,229 million as corporate
bonds that would mature within a year were transferred from non-current liabilities, while certain domestic straight corporate bonds were redeemed uponmaturity.
· Current portion of long-term borrowings increased ¥86,931 million. Out of theborrowings made through wholly owned subsidiary Skywalk Finance GK using Alibaba shares,3 ¥222.0 billion was transferred from non-current liabilities
upon it becoming scheduled to be repaid in January 2019.

SoftBank Vision Fund
¥629,337 million¥232,242 million increase
SoftBank Vision Fund made additional borrowings using NVIDIA sharesthrough collar transactions. The borrowings have been made in several tranches
since the previous fiscal year.

Others¥844,768 million¥677,609 million increase
As the settlement date of a variable prepaid forward contract for Alibaba sharesbecame due within a year, the related financial liabilities were transferred from
non-current liabilities.

Derivative financial liabilities¥417,679 million¥321,438 million increase
Derivative liabilities relating to the embedded collar transaction in the variable
prepaid forward contract for Alibaba shares were transferred to current liabilities.

Income taxes payables¥485,385 million¥337,406 million increase
This mainly reflects the recording of an amount equivalent to taxes payable forthe gain on disposal that arose at seller SoftBank Group Japan Corporation as aresult of the disposal of SoftBank Corp. shares.

30SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 2018(d) Non-current Liabilities(Millions of yen)March 31, 2018

December 31, 2018

Change13,824,783
7,732,330

12,797,095
5,918,694(1,027,688)(1,813,636)

Long-term borrowings3
Corporate bonds
SoftBank Corp.

3,215,459
4,516,871
896,435

1,720,106
4,198,588
2,379,307(1,495,353)(318,283)
1,482,872

Long-term borrowings
Lease obligations
OthersSprint217,514
670,862
8,059
3,979,705

1,687,931
690,431945
4,025,236

1,470,417
19,569(7,114)45,531Long-term borrowings
Corporate bonds
OthersSoftBank Vision Fund
Others

1,346,576
2,612,178
20,951
101,312
1,115,001

1,559,088
2,449,905
16,243473,858

212,512(162,273)(4,708)(101,312)(641,143)

Interest-bearing debt
SoftBank Group Corp.3

Financial liabilities relating to sale of shares by
variable prepaid forward contract
OthersThird-party interests in SoftBank Vision Fund and Delta
Fund

688,332
426,669

473,858(688,332)
47,1891,803,966

3,792,014

1,988,048

SoftBank Vision Fund
Delta Fund
Derivative financial liabilities
Other financial liabilities
Defined benefit liabilities
Provisions
Deferred tax liabilities
Other non-current liabilities

1,659,665
144,301
865,40262,372
100,486
132,139
1,085,626
303,915

3,639,545
152,469
140,553
60,164
98,760156,847
1,325,908
254,524

1,979,880
8,168(724,849)(2,208)(1,726)
24,708240,282(49,391)

Total non-current liabilities

18,178,689

18,625,865

447,17631

SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 2018

Primary components of the change
Components and balance

Changes from the previous fiscal year-end and main reasonsInterest-bearing debt
¥12,797,095 million¥1,027,688 million decrease

SoftBank Group Corp.3¥5,918,694 million¥1,813,636 million decrease· Long-term borrowings decreased ¥1,495,353 million.
SoftBank Group Corp. repaid a portion of its senior loan before maturity by using¥1.6 trillion, which was received from SoftBank Corp. as repayment of its borrowings from the company, as part of the preparations to list SoftBank Corp.
shares.
· Corporate bonds decreased ¥318,283 million.
Foreign currency-denominated senior notes totaling ¥357.6 billion were redeemed before maturity. In addition, certain corporate bonds were transferred tocurrent liabilities as they became due within a year. On the other hand, corporate
bonds totaling ¥722.7 billion were issued.

SoftBank Corp.
¥2,379,307 million¥1,482,872 million increase
SoftBank Corp. made new borrowings of ¥1.6 trillion through a senior loan as partof its preparations for listing.

Others¥473,858 million¥641,143 million decrease
Financial liabilities related to the variable prepaid forward contract for Alibaba
shares were transferred to current liabilities.

Third-party interests in
SoftBank Vision Fund andDelta Fund
¥3,792,014 million

SoftBank Vision Fund: ¥1,979,880 million increase

Derivative financial liabilities¥140,553 million¥724,849 million decrease
Derivative liabilities relating to the embedded collar transaction in the variable prepaid forward contract for Alibaba shares were transferred to current liabilities.

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

32SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 2018(e) Equity(Millions of yen)March 31, 2018

December 31, 2018

ChangeCommon stock

238,772

238,772-

Capital surplus

256,768

1,445,053

1,188,285

Other equity instruments

496,876

496,876-

Retained earnings

3,940,259

5,714,798

1,774,539

Treasury stock(66,458)(62,067)

4,391

Accumulated other comprehensive income

317,959

79,012(238,947)

Available-for-sale financial assets

63,700-(63,700)

Equity financial assets at FVTOCI

-

5,040

5,040

Debt financial assets at FVTOCI

-

134

134

(55,286)(87,683)(32,397)309,545

161,521(148,024)

Total equity attributable to owners of the parent

5,184,176

7,912,444

2,728,268

Non-controlling interests

1,088,846

1,373,945

285,099

Total equity

6,273,022

9,286,389

3,013,367

16.6%

21.7%

5.1 ppCash flow hedges
Exchange differences on translating
foreign operations

Ratio of equity attributable to owners of the parent

Primary components of the change
Components and balance

Changes from the previous fiscal year-end and main reasons

Capital surplus¥1,445,053 million¥1,188,285 million increase
Capital surplus increased due to the disposal of SoftBank Corp. shares by awholly owned subsidiary of the Company.

Retained earnings¥5,714,798 million¥1,774,539 million increase
Net income attributable to owners of the parent of ¥1,538,396 million was recorded. The cumulative impact of adopting the new standards of ¥300,615 million was recorded on April 1, 2018.

Accumulated other comprehensive income¥79,012 million¥238,947 million decrease· Exchange differences on translating foreign operations decreased ¥148,024
million. The yen appreciated against the British pound while it depreciatedagainst the U.S. dollar from the previous fiscal year-end.
· The cumulative impact of adopting the new standards of ¥57,828 million
was reclassified as retained earnings on April 1, 2018.

33

SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 2018(3) Overview of Cash Flows
1. Proceeds of ¥2.3 trillion from the disposal of SoftBank Corp. shares; a portion of which was used for repayment of interest-bearing debt
2. Progress of investments at SoftBank Vision Fund
- Contributions from third-party investors of ¥1.9 trillion; payments for acquisition of investments of ¥1.1 trillion- Proceeds from sale of investments of ¥421.9 billion: sale of Flipkart shares- Distribution/repayment to third-party investors of ¥455.3 billion: distributed proceeds from the sale of Flipkart
shares, among others, to third-party investors(Millions of yen)

Nine months ended December 31
2017
2018

ChangeCash flows from operating activities

883,775

911,188

27,413

Cash flows from investing activities(2,728,404)(2,107,857)

620,547

Cash flows from financing activities

2,975,356

3,113,767

138,411(a) Cash Flows from Operating Activities
Cash flows from operating activities increased ¥27,413 million year on year. Income taxes paid decreased ¥68,254
million year on year mainly due to the payment of income taxes for the sale of the Supercell Oy shares in 2016, which
was paid in the same period of the previous fiscal year. Net income increased ¥371,712 million year on year but it
included non-cash income such as unrealized gain on valuation of investments at SoftBank Vision Fund and derivative
gain.
(b) Cash Flows from Investing Activities
Primary components for the period
Components

Primary details

Outlays for purchase of property, plant andequipment and intangible assets¥(1,065,660) million

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

Payments for acquisition of investments¥(531,829) million

The Company made new investments, including an investment in
GM Cruise made by a wholly owned subsidiary of the Company.

Payments for acquisitions of investment by
SoftBank Vision Fund and Delta Fund¥(1,143,044) million

SoftBank Vision Fund made new investments. For investments madein the period, see “Investees of SoftBank Vision Fund” under “(e)SoftBank Vision Fund and Delta Fund Investment Segment” in “b.
Results by Segment” in “1. Results of Operations.”
For the investees marked ◆, which were acquired from sale by theCompany, the payments for the acquisition that had been initiallymade by the Company are included in “Payments for acquisition of
investments” above (excluding payments for the investments acquired by the Company in prior fiscal years).

Proceeds from sale of investments by SoftBank Vision Fund and Delta Fund
¥421,921 million

SoftBank Vision Fund sold Flipkart shares.

34SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 2018(c) Cash Flows from Financing Activities
Primary components for the period
Component
Proceeds from interest-bearing debt
¥5,455,766 million
Proceeds from long-term borrowings¥4,310,676 million

Proceeds from issuance of bonds¥747,744 million
Repayment of interest-bearing debt¥(5,732,283) million
Repayment of long-term borrowings¥(4,371,128) million

Redemption of corporate bonds¥(955,504) million

Primary details· As part of preparations for listing, SoftBank Corp. borrowed ¥1.6
trillion through a senior loan. The proceeds from the senior loan
were used to repay its borrowings from SoftBank Group Corp.,
which was eliminated as an intercompany transaction.
· Sprint implemented borrowings through the securitization of receivables and term loans.
SoftBank Group Corp. issued corporate bonds totaling ¥722.7 billion.

· SoftBank Group Corp. used all of the ¥1.6 trillion repayment received from SoftBank Corp. to partially repay its senior loan before
maturity.
· Sprint and SoftBank Corp. repaid borrowings that were mainly
made by securitizing receivables.
· SoftBank Group Corp. redeemed corporate bonds totaling ¥757.6
billion, including early redemption.
· Sprint redeemed corporate bonds of $1.8 billion at maturity.

Contribution to SoftBank Vision Fund andDelta Fund from third-party investors¥1,892,414 million· SoftBank Vision Fund received cash contributions from third-party
investors based on capital calls.
· 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¥(455,280) million· SoftBank Vision Fund made distributions of ¥255,040 million tothird-party investors, including performance-based and fixed distributions, by using the proceeds received from the sale of Flipkart
shares, as well as partial monetization of NVIDIA shares.
· SoftBank Vision Fund repaid the principal for investments totaling¥193,788 million to third-party investors mainly from the sale of
Flipkart shares.
· Delta Fund made fixed distributions based on the aggregatedamount of investment.

Proceeds from the partial sales of shares ofsubsidiaries to non-controlling interests¥2,350,262 million

Proceeds of ¥2,349,832 million were received from the disposal of a
portion of SoftBank Corp. shares.

Purchase of shares of subsidiaries from
non-controlling interests¥(229,487) million

SoftBank Corp. acquired shares of Yahoo Japan Corporation from
Altaba Inc. through a tender offer.

35

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

Notes for “1. Results of Operations”
1 The names of the investments of SoftBank Vision Fund are presented in the order of the size of the investments’ impact on the Com-pany’s financial results, unless otherwise stated.
2 To enable investors to appropriately understand and assess the Company’s management performance, the Company has presented

operating income arising from SoftBank Vision Fund and Delta Fund separately from that of other segments in a subcategory underoperating income as “Operating income from SoftBank Vision Fund and Delta Fund.”
3 The presentation of the interest-bearing debt and finance cost of SoftBank Group Corp. includes borrowings made by Skywalk Finance
GK, a wholly owned subsidiary of the Company, using Alibaba shares. The borrowings are not guaranteed by SoftBank Group Corp.,
hence non-recourse to the company.
4
In its condensed interim consolidated statement of income, the 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 thelag period and which are publicly announced by Alibaba.
5 Other adjustments of the Sprint segment primarily include gain and loss from non-recurring factors, such as gain on spectrum license
exchange and income and loss on contract termination among items included in other operating income, and loss and merger-related
expenses included in cost of sales and selling, general and administrative expenses.
6 For Sprint’s cumulative subscribers, from the three-month period ended in March 31, 2018, as a result of the introduction of a nonSprint branded postpaid plan allowing prepaid customers to purchase a device under an installment billing program, said prepaid
customers are included in the postpaid subscriber base. A retroactive adjustment has not been made.
7 Sprint’s net additions exclude changes in the subscriber base resulting from such special factors as the acquisition of other companies
by Sprint affiliate companies (regional telecom operators that use their own telecom networks to provide services under the Sprint
brand), the discontinuation of certain service plans at Sprint, or the establishment of venture companies by Sprint.
8 The acquisition costs and fair values of the investments at SoftBank Vision Fund include the investments made by subsidiaries of theCompany through investment holding entities that are subsidiaries of SoftBank Vision Fund.
9 Amount deposited for future indemnity claims
10 Contributions from limited partners of SoftBank Vision Fund excludes the amount that was repaid to limited partners due to investment plan changes and other reasons after the contribution had been made.
11 The Company’s obligation to Delta Fund is offset against the value of the investment securities in DiDi acquired by the Company
and then transferred to Delta Fund.
12 Non-recallable contribution of SoftBank Vision Fund represents the applicable principal for the investment, which was returned tolimited partners after the sale of Flipkart shares.
13 When an investment is made from the remaining committed capital of the third-party investor at Delta Fund, the same amount isdeducted from that investor’s remaining committed capital at SoftBank Vision Fund.
14 Investment securities are investments made by the Company outside of SoftBank Vision Fund and Delta Fund.

36

SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 2018

2. Notes to Summary Information(1) Changes in Accounting Policies(Changes in accounting policies required by IFRSs)
IFRS 9 “Financial Instruments” and IFRS 15 “Revenue from Contracts with Customers” were adopted during thethree-month period ended June 30, 2018.
The details are described in “1. Significant accounting policies” in “(6) Notes to Condensed Interim Consolidated
Financial Statements” under “3. Condensed Interim Consolidated Financial Statements and Primary Notes.”(2) Changes in Accounting Estimates(Impairment loss on equity method investments)
As a result of an impairment test which was conducted for an investment in OneWeb Global Limited, an equity
method associate of the Company, impairment loss was recognized for the three-month period ended December 31,
2018. The details are described in “16. Other non-operating income (loss) Notes 2” in “(6) Notes to Condensed
Interim Consolidated Financial Statements” under “3. Condensed Interim Consolidated Financial Statements andPrimary Notes.”(Changes in estimate for use of loss carryforwards)
On December 19, 2018, SoftBank Corp. shares were listed on the Tokyo Stock Exchange First Section and a portionof SoftBank Corp. shares held by SoftBank Group Japan Corporation, a wholly-owned subsidiary of the Company,
was disposed.
As a result of the transaction, for gain on sales of SoftBank Corp. shares generated in SoftBank Group Japan
Corporation, a loss carryforward whose deferred tax asset was not recognized, was used and income taxes decreased.
The details are described in “7. Income taxes” in “(6) Notes to Condensed Interim Consolidated Financial Statements”
under “3. Condensed Interim Consolidated Financial Statements and Primary Notes.”

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

Definition

SoftBank Group Corp.

SoftBank Group Corp. (stand-alone basis)

The Company

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

Arm

Arm Limited

SoftBank Vision Fund

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

Delta FundSB Delta Fund (Jersey) L.P.

SBIA

SB Investment Advisers (UK) Limited

Brightstar

Brightstar Global Group Inc.

Fortress

Fortress Investment Group LLC

Alibaba

Alibaba Group Holding Limited

37

SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 2018

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

As ofMarch 31, 2018
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
Costs to obtain contracts
Investments accounted for using the equity method
Investments from SoftBank Vision Fund and Delta Fund
accounted for using FVTPL
Investment securities
Other financial assets
Deferred tax assets
Other non-current assets
Total non-current assets
Total assets

38

As of
December 31, 2018

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

5,304,367
2,412,906
611,5023,856,847
4,302,553
6,784,550
2,328,617

4,087,429
4,232,295
6,887,784
330,5702,718,708

2,827,784

6,508,438

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

990,661
960,544484,028
218,339
27,418,796
36,459,477

392,850
319,056
9,040,681

SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 2018

(Millions of yen)

As ofMarch 31, 2018
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
Derivative financial liabilities
Other financial liabilities
Income taxes payables
Provisions
Other current liabilities
Total current liabilities

As ofDecember 31, 2018

3,217,405
684,091

4,256,689
745,735

40,713-

1,816,010
96,241
1,646
147,979
65,709658,961
6,728,755

1,862,928
417,679
10,579
485,385
40,047728,1818,547,223

13,824,783

12,797,095

1,803,966

3,792,014

Total liabilities

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

140,553
60,164
98,760156,847
1,325,908
254,524
18,625,865
27,173,088

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

238,772
1,445,053
496,876
5,714,798(62,067)
79,012
7,912,444
1,373,945
9,286,389
36,459,477

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

39SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 2018

(2) Condensed Interim Consolidated Statement of Income and Condensed Interim Consolidated Statement ofComprehensive Income
For the nine-month period ended December 31
Condensed Interim Consolidated Statement of Income(Millions of yen)

Nine-month period ended
December 31, 2017

Nine-month period ended
December 31, 2018

Net sales
Cost of sales
Gross profit

6,811,274(4,044,184)
2,767,090

7,168,452(4,232,353)
2,936,099

Selling, general and administrative expenses
Gain relating to loss of control over subsidiaries
Other operating loss
Operating income (excluding income from SoftBank
Vision Fund and Delta Fund)
Operating income from SoftBank Vision Fundand Delta Fund
Operating income
Finance cost
Income on equity method investments
Foreign exchange gain
Derivative gain (loss)
Gain from financial instruments at FVTPL
Change in third-party interests in SoftBank Vision Fundand Delta Fund
Gain from remeasurement relating to discontinuing the useof the equity method
Other non-operating income (loss)
Income before income tax
Income taxes
Net income(1,827,083)(27,605)(1,991,415)
176,261(70,730)

912,4021,050,215

236,427

808,792

1,148,829(383,337)
319,591
20,100(485,198)
8,069

1,859,007(479,396)
257,533
16,908544,574
48,964(108,163)(453,529)-

24,842

43,913563,804
638,941
1,202,745(9,069)1,809,834(235,377)
1,574,457

1,014,944
187,801
1,202,745

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

918.29894.15

1,389.72
1,380.75

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

Earnings per share
Basic earnings per share (yen)Diluted earnings per share (yen)40SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 2018

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

Nine-month period ended
December 31, 2017

Nine-month period ended
December 31, 2018

1,202,745

1,574,457

8,552
-

367
(8,741)

8,552(8,374)

48,156(10,804)435(33,382)

382,058(134,619)

10,571

10,259429,981(157,307)

438,533
1,641,278(165,681)
1,408,776

1,450,381
190,897
1,641,278

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

Net income
Other comprehensive income, net of tax
Items that will not be reclassified to profit or loss
Remeasurements of defined benefit plan
Equity financial assets at FVTOCI
Total items that will not be reclassified to profit
or loss
Items that may be reclassified subsequently to
profit or loss
Available-for-sale financial assets
Debt financial assets at FVTOCI
Cash flow hedges
Exchange differences on translating foreign
operations
Share of other comprehensive income ofassociates accounted for using the equity method
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

41SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 2018

For the three-month period ended December 31
Condensed Interim Consolidated Statement of Income(Millions of yen)Three-month period ended Three-month period ended
December 31, 2017
December 31, 2018
Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Other operating loss
Operating income (excluding income from SoftBank
Vision Fund and Delta Fund)
Operating income from SoftBank Vision Fundand Delta Fund
Operating income
Finance cost
Income on equity method investments
Foreign exchange gain (loss)
Derivative gain
Loss from financial instruments at FVTPL
Change in third-party interests in SoftBank Vision Fundand Delta Fund
Loss from remeasurement relating to discontinuing the useof the equity method
Other non-operating income (loss)
Income before income tax
Income taxes
Net income
Net income attributable to
Owners of the parent
Non-controlling interests

Earnings per share
Basic earnings per share (yen)Diluted earnings per share (yen)42

2,400,139(1,490,002)
910,137

2,514,599(1,509,814)
1,004,785(639,305)(47,031)(703,218)(39,634)

223,801

261,933

50,189176,358

273,990(139,879)
211,301
9,158
19,483(2,138)438,291(157,054)
147,195(13,034)
502,167(154,902)(31,006)(253,772)-(64,367)

3,874
344,783
714,220
1,059,003(36,779)
407,745
296,042
703,787

912,322
146,6811,059,003

698,293
5,494
703,787

829.96809.15633.42629.32

SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 2018

Condensed Interim Consolidated Statement of Comprehensive Income(Millions of yen)Three-month period ended
December 31, 2017

Three-month period ended
December 31, 2018

1,059,003

703,787

8,552
-

367
(7,704)

8,552(7,337)

11,101
1,119

1,124(8,944)45,882(346,515)

1,030

7,577

59,132(346,758)

67,684
1,126,687(354,095)
349,692

977,370
149,317
1,126,687

357,666(7,974)
349,692

Net income
Other comprehensive income, net of tax
Items that will not be reclassified to profit or loss
Remeasurements of defined benefit plan
Equity financial assets at FVTOCI
Total items that will not be reclassified to profit
or loss
Items that may be reclassified subsequently to
profit or loss
Available-for-sale financial assets
Debt financial assets at FVTOCI
Cash flow hedges
Exchange differences on translating foreign
operations
Share of other comprehensive income ofassociates accounted for using the equity method
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

43SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 2018

(3) Condensed Interim Consolidated Statement of Changes in Equity
For the nine-month period ended December 31, 2017
(Millions of yen)

Equity attributable to owners of the parent

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
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 December 31, 2017

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
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 December 31, 2017

Commonstock
238,772

Capitalsurplus245,706-

Retainedearnings
2,958,355

Treasurystock(67,727)---

1,014,944

-

-

-

-

-

-

Other equity
instruments

Accumulated
othercomprehensive
income211,246

Total
3,586,352--

1,014,944--

435,437

435,437-

1,014,944-

435,437

1,450,381-

496,876---

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

-

-

-

7,188

-

(7,188)

-

-

-

-

(726)

1,274

-

548

-

-

-

-

-

-

-

-

(20,423)

-

-

-

-

(20,423)-(3,174)

-

-

-

-

(3,174)-38,397----38,397

-

4,665
-

-

-

-

-

4,665
-

-

19,465496,876(41,471)

1,274(7,188)468,956

238,772

265,171496,876

3,931,828(66,453)

639,495

5,505,689

Noncontrollinginterests
883,378

Total equity
4,469,730

187,801

1,202,745

3,096

438,533

190,897

1,641,278-

496,876(30,781)(78,714)

-

-

-

548

14,972

14,972(2,091)(22,514)-(3,174)-38,397

7,522
(709)

12,187(709)(11,087)

457,869

1,063,188

6,568,877

44SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 2018

For the nine-month period ended December 31, 2018
(Millions of yen)

Equity attributable to owners of the parent

As of April 1, 2018
Effect of retrospective
adjustments due to adoption of
new standards*
As of April 1, 2018
(after adjustments)
Comprehensive income
Net income
Other comprehensive
incomeTotal comprehensive income
Transactions with owners andother transactions
Cash dividends
Distribution to owners of other
equity instruments
Transfer of accumulated othercomprehensive income toretained earnings
Purchase and disposal of treasury
stock
Changes from businesscombination
Changes in interestsin subsidiaries
Changes in associates’interests in theirsubsidiaries
Changes in interests in associates’
capital surplus
Share-based payment transactions
Other
Total transactions with owners
and other transactions
As of December 31, 2018

Commonstock
238,772

Capitalsurplus256,768

Other equity
instruments

496,876

Retainedearnings
3,940,259

Treasurystock(66,458)---

300,615

238,772

256,768

496,876---

Accumulated
othercomprehensive
income317,959

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

242,787

4,240,874(66,458)

260,1315,426,963-

1,538,396--

1,538,396

-

-

-

-

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

1,538,396-(181,553)

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

-

-

-

(434)

-

434

-

-

1,114

-

-

4,391

-

5,505

-

-

-

-

-

-

-

-

1,165,362

-

-

-

-

1,165,362-

14,105----

14,105

-

2,338

-

-

-

-

2,338

-

4,682
684

-

-

-

-

4,682
684

-

1,188,285-(64,472)

4,391

434

1,128,638

238,772

1,445,053

496,876

5,714,798(62,067)

79,012

7,912,444

45

SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 2018

(Millions of yen)

As of April 1, 2018
Effect of retrospective
adjustments due to adoption of
new standards*
As of April 1, 2018
(after adjustments)
Comprehensive income
Net income
Other comprehensive
incomeTotal comprehensive income
Transactions with owners andother transactions
Cash dividends
Distribution to owners of other
equity instruments
Transfer of accumulated othercomprehensive income toretained earnings
Purchase and disposal of treasury
stock
Changes from businesscombination
Changes in interestsin subsidiaries
Changes in associates’interests in theirsubsidiaries
Changes in interests in associates’
capital surplus
Share-based payment transactions
Other
Total transactions with owners
and other transactions
As of December 31, 2018

Noncontrollinginterests
1,088,846

Total equity
6,273,022

21,300264,087

1,110,146

6,537,109

36,061

1,574,457

15,872(165,681)

51,933

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

-

-

-

5,505

6,115

6,115

234,8131,400,175-

14,105

-

2,338

1,660
(209)

6,342
475

211,866

1,340,504

1,373,945

9,286,389

Note:* In accordance with the adoption of IFRS 9 “Financial Instruments” and IFRS 15 “Revenue from Contracts with Customers,”
cumulative effects of retrospective adjustments are recognized as adjustments to the opening balance of retained earnings andaccumulated other comprehensive income. The details are described in “(2) Effect of adopting new standards and interpretations”
under “1. Significant accounting policies.”

46

SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 2018

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

Cash flows from operating activities
Net income
Depreciation and amortization
Gain relating to loss of control over subsidiaries
Gain on investments at SoftBank Vision Fundand Delta Fund
Finance cost

Nine-month period ended
December 31, 2017

Nine-month period ended
December 31, 2018

1,202,745
1,152,375-

1,574,457
1,254,261(176,261)(254,852)(838,779)

383,337

479,396

Income on equity method investments(319,591)(257,533)

Derivative loss (gain)

485,198(544,574)

Gain from financial instruments at FVTPL
Change in third-party interests in SoftBank Vision Fundand Delta Fund
Gain from remeasurement relating to discontinuing theuse of the equity method
Foreign exchange (gain) and other non-operating(income) loss
Income taxes
Increase in trade and other receivables
Increase in inventories(8,069)(48,964)

108,163453,529-(24,842)(64,013)(7,839)(638,941)(161,386)(391,455)

235,377(250,005)(396,730)

Increase in trade and other payables

165,207

137,600

Other(18,602)46,9381,640,116
21,674(397,073)(472,211)
91,269883,775

1,636,031
35,520(455,447)(403,957)
99,041
911,188(791,629)(1,065,660)(346,403)
24,657(531,829)
232,334(2,021,298)(1,143,044)-

421,921(261,859)-(63,980)
91,253(110,032)(250,875)(127,788)(277,800)

384,231

290,368(103,771)
467,499
157,989(2,728,404)(454,475)
693,460(49,530)(2,107,857)

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
Proceeds from sales/redemption of investments
Payments for acquisition of investments by SoftBank
Vision Fund and Delta Fund
Proceeds from sales of an investment by SoftBank Vision
Fund and Delta FundPayments for acquisition of control over subsidiaries
Proceeds from loss of control over subsidiaries, net
Payments for loan receivables
Payments for acquisition of marketable securities for
short-term trading
Proceeds from sales/redemption of marketable securities
for short-term trading
Payments into time deposits
Proceeds from withdrawal of time deposits
Other
Net cash used in investing activities

47

SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 2018

(Millions of yen)

Nine-month period ended
December 31, 2017
Cash flows from financing activities
Proceeds in short-term interest-bearing debt, net

Nine-month period ended
December 31, 2018

312,582(7,646)

Proceeds from interest-bearing debt

4,785,202

5,455,766

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 the partial sales of shares of subsidiaries tonon-controlling interests
Purchase of shares of subsidiaries from non-controllinginterests(4,238,546)(5,732,283)

1,765,404

1,892,414(20,918)(455,280)-

2,350,262(31,919)(229,487)

Proceeds from issuance of other equity instruments

496,876-

Distribution to owners of other equity instruments
Cash dividends paid-

(16,087)(47,785)(47,806)

Cash dividends paid to non-controlling interests(29,577)(29,966)

Other(15,963)(66,120)

2,975,356

3,113,767

26,52352,619

Increase in cash and cash equivalents

1,157,250

1,969,717

Cash and cash equivalents at the beginning of the period

2,183,102

3,334,650

Cash and cash equivalents at the end of the period

3,340,352

5,304,367

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

48

SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 2018(5) Significant Doubt about Going Concern Assumption
There are no applicable items.
(6) Notes to Condensed Interim Consolidated Financial Statements
1. Significant accounting policies
Significant accounting policies applied to this condensed interim consolidated financial statements are the same as
the accounting policies applied to the consolidated financial statements for the fiscal year ended March 31, 2018,
except for the following. In addition, income taxes for the nine-month period ended December 31, 2018 are
calculated based on the estimated effective tax rate and certain defined benefit liabilities for the nine-month period
ended December 31, 2018 are calculated by predictive computation based on a reasonable estimation in accordancewith the results of an actuarial calculation as of March 31, 2018.
The details of significant accounting policies for SoftBank Vision Fund and Delta Fund are described in “(3)Significant accounting policies for SoftBank Vision Fund and Delta Fund segment.”(1) Adoption of new standards and interpretations
The Company has adopted the following standards during the three-month period ended June 30, 2018.
Standard/interpretation

IFRS 9Financial Instruments

IFRS 15

Revenue from Contracts
with Customers

Outline of the new/revised standards
IFRS 9 replaces the previous IAS 39. Main revisions are:・to revise classification into measurement categories offinancial instruments (amortized cost and fair value) andmeasurement;
・to revise the treatment of changes in fair value of financial
liabilities measured at fair value;
・to revise the eligibility requirement of hedged items andhedging instruments, and requirements related to theeffectiveness of the hedge; and・to revise the measurement approach for impairment byintroducing an impairment model based on the expectedcredit loss.
IFRS 15 replaces the previous IAS 11 and IAS 18. Mainrevisions are:・to require revenue recognition by the following five steps:
a. identify the contract with the customer
b. identify the performance obligations in the contractc. determine the transaction priced. allocate the transaction price to each performanceobligation in the contract
e. recognize revenue when (or as) a performanceobligation is satisfied
・to revise the treatment for contract costs, license andguarantee of products; and・to increase the disclosure related to revenue recognition.

There are no significant impacts on the condensed interim consolidated financial statements due to the adoption of
the other new standards or interpretations.
In accordance with the transitional provisions of IFRS 9, the Company applied this standard retrospectively tofinancial instruments held as of the date of initial application (April 1, 2018) and recognized the cumulative effect ofapplying the standard as an adjustment to the opening retained earnings and accumulated other comprehensive
income at the date of initial application. Accordingly, comparative information for the fiscal year ended March 31,2018 is not restated.
In accordance with the transitional provisions of IFRS 15, the Company applied this standard retrospectively tocontracts that are not completed as of the date of initial application (April 1, 2018) and recognized the cumulative

49

SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 2018

effect of applying the standard as an adjustment to the opening retained earnings at the date of initial application.
Accordingly, comparative information for the fiscal year ended March 31, 2018 has not been restated.
(2) Effect of adopting new standards and interpretations
Financial impacts of applying “IFRS 9 Financial Instruments” and “IFRS 15 Revenue from Contracts with Customers”
on condensed interim consolidated statement of financial position as of April 1, 2018 and condensed interim
consolidated financial statements for the nine-month period ended December 31, 2018 are as follows:(Condensed Interim Consolidated Statement of Financial Position)
As of April 1, 2018
(Millions of yen)
IFRS 9Adjustment
amount

Before adoption

IFRS 15
Adjustment
amountAfter adoption

ASSETS
Trade and other receivables
Inventories
Other current assets1
Intangible assets
Costs to obtain contracts2

2,314,353

75

6,580

2,321,008

362,041-(2,539)359,502344,374(177)

12,416356,613

6,784,550-(13,271)

6,771,279--

304,778

304,778

Deferred tax assets

647,51431(54,466)

593,079

Other non-current assets1

221,232-(21,999)

199,233

Trade and other payables1

1,816,010-(62,238)

1,753,772

Other current liabilities1

658,961-

46,900705,861

Deferred tax liabilities

1,085,626-

41,387

1,127,013

LIABILITIES AND EQUITYOther non-current liabilities1

303,915-(58,029)

245,886

Retained earnings1,2,5
Accumulated other comprehensive
income5

3,940,259

52,537

248,078

4,240,874

317,959(52,531)(5,297)260,131

Non-controlling interests

1,088,846(22)

21,322

1,110,146

50

SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 2018

(Condensed Interim Consolidated Statement of Financial Position)
As of December 31, 2018
(Millions of yen)
IFRS 9Adjustment
amount

Before adoption

IFRS 15
Adjustment
amountAfter adoption

ASSETS
Trade and other receivables

2,394,605

70

18,231

2,412,906

395,246-(2,396)392,850

Inventories
Other current assets1

276,468(119)

42,707

319,056

6,907,688-(19,904)

6,887,784--

330,570

330,570

Deferred tax assets

544,08131(60,084)

484,028

Other non-current assets1

213,706-

4,633

218,339

1,862,928

Intangible assets
Costs to obtain contracts2

LIABILITIES AND EQUITY
Trade and other payables1

1,941,003-(78,075)

Other current liabilities1

667,652-

60,529728,181Deferred tax liabilities

1,268,761-

57,147

1,325,908

322,265-(67,741)

254,524

5,236,695

166,558

311,5455,714,798

245,583(166,555)(16)

79,012

1,342,947(22)

31,0201,373,945

Other non-current liabilities1
Retained earnings1,2,5
Accumulated other comprehensive
income5Non-controlling interests(Condensed Interim Consolidated Statements of Income)Nine-month period ended December 31, 2018
(Millions of yen)
IFRS 9Adjustment
amount

Before adoption

IFRS 15
Adjustment
amountAfter adoption

Net sales1

7,116,264-

52,1887,168,452

Cost of sales(4,220,258)-(12,095)(4,232,353)

Gross profit
Selling, general and administrative
expenses2
Operating income from SoftBank Vision
Fund and Delta Fund5

2,896,006-

40,093

2,936,099(2,048,203)

4,765

52,023(1,991,415)

686,900

121,892-

808,792

Operating income

1,640,467

126,657

91,883

1,859,007

Income on equity method investments

272,618(15,085)-

257,533

Gain from financial instruments at FVTPL5

44,0794,885-

48,964

Other non-operating income3,5

1,584(10,653)-(9,069)

Income taxes(224,037)

8,249(19,589)(235,377)

Net income

1,388,166

114,053

72,2381,574,457

Basic earnings per share (yen)1,226.18

105.3058.24

1,389.72

Diluted earnings per share (yen)1,217.50

105.1258.13

1,380.75

51

SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 2018

(Condensed Interim Consolidated Statements of Comprehensive Income)Nine-month period ended December 31, 2018
(Millions of yen)
IFRS 9Adjustment
amount

Before adoption
Net income

IFRS 15
Adjustment
amountAfter adoption

1,388,166

114,053

72,2381,574,457-(8,741)-(8,741)

114,557(114,557)

-

-

-

435

-

435

(134,247)

1

(373)

(134,619)(1,894)

12,153-

10,259Other comprehensive income, net of tax
Items that will not be reclassified to
profit or loss
Equity financial assets at FVTOCI3
Items that may be reclassified
subsequently to profit or loss
Available-for-sale financial assets3,4,5
Debt financial assets at FVTOCI4
Exchange differences on translating
foreign operations
Share of other comprehensive income ofassociates accounted for using theequity method5

Notes:
1. Mobile telecommunications services and sales of mobile handsets
There are various changes related to the allocation of transaction prices to revenues from the mobile
telecommunications service and revenues from the sale of mobile handsets as well as timing of revenue
recognition. The main changes result from changes in accounting treatment for wireless subsidy contracts andchanges in the period during which revenue from activation fees and upgrade fees are deferred. The Company
previously deferred direct costs related to activation over the same period as the revenue from activation fees andupgrade fees. As a result of adopting IFRS 15, the Company recognizes direct costs related to activation as
expenses when incurred, except for costs related to obtain contracts.
In addition, interest incurred on an installment contract entered into between the Company and a subscriber is nota significant financing component under IFRS 15. Therefore, the Company does not adjust the financing
component for installment receivables at contract inception.
2. Capitalization of costs to obtain contracts
The Company’s existing approach is to recognize sales commissions to dealers related to mobile
telecommunications service contracts as expenses when incurred. As a result of adopting IFRS 15, the Company
capitalizes the sales commissions that would not have been incurred if the mobile telecommunications service
contract had not been obtained and that are expected to be recovered, as the costs to obtain contracts. The costs toobtain contracts are amortized on a straight-line basis over the period during which services related to such costs
are expected to be provided.
3. Financial assets previously classified as available-for-sale are classified as equity financial assets at FVTOCI bymaking an irrevocable election that would otherwise be measured at fair value through profit or loss to present
subsequent changes in fair value in other comprehensive income.
4. Financial assets previously classified as available-for-sale are classified as debt financial assets at FVTOCI taking
into account the business model and cash flow characteristics.
5. Financial assets previously classified as available-for-sale other than financial assets described in the above Notes 3
and Notes 4 are classified as financial assets at FVTPL.

52

SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 2018

Major effects on the carrying amount from the change in classification of financial assets due to the adoption of IFRS
9 as of April 1, 2018 are as follows. There are no changes in classification and carrying amount of financial
liabilities.
As of April 1, 2018
Previous standard (IAS 39)
Classification offinancial assets

Change in classification
Available-forAvailable-forLoan andsale tosale toreceivables
financialfinancial
to financial
assets at
assets at
assets at
FVTPL
amortized cost
FVTPL

Carrying amountFinancial assets at
FVTPL

4,749,563

501,941-

Derivatives
designated as
hedging instruments

4,358

-

-

Available-for- sale

860,147(501,941)(100)

Held-to-maturity
Loan and receivables
Total

116,172
3,267,848
8,998,088

-

100

-

-

(Millions of yen)
New standard (IFRS 9)Classification offinancial assets

Financial assets at
FVTPL
Derivatives
designated as
hedging
instruments
Debt financial
assets at FVTOCI
Equity financial
assets at FVTOCI
Financial assets at(3,655)amortized cost
Total
3,655

Carrying amount

5,255,159

4,358

249,427
108,679
3,380,465
8,998,088

Measurement categories under IAS 39 and IFRS 9 for the Company’s major financial assets as of April 1, 2018 are as
follows. There are no change in measurement categories and carrying amount of financial liabilities
As of April 1, 2018
(Millions of yen)
New standard (IFRS 9)

Previous standard (IAS 39)
Major financial assets

Measurement
category

Carrying amountMeasurement
category

Carrying amount

Equity securities
Investments from SoftBank
Vision Fund and Delta Fund

FVTPL

2,817,160

Available-for-sale

525,951

FVTPL

1,802,152

Bonds

Available-for-sale

240,921

Trade and other receivables

Amortized cost

2,314,353

Other equity securities

FVTPL62,817,160

FVTOCI7
FVTPL
FVTPL6FVTOCI8
FVTPL

102,368
423,583
1,802,152100
224,090
16,731

Amortized cost

2,314,428

Amortized cost

6. Financial assets previously designated as financial assets at FVTPL are classified as financial assets at FVTPL inaccordance with the criteria regarding the classification under IFRS 9.
7. Financial assets previously classified as available-for-sale are classified as equity financial assets at FVTOCI bymaking an irrevocable election that would otherwise be measured at fair value through profit or loss to present
subsequent changes in fair value in other comprehensive income.
8. Financial assets previously classified as available-for-sale are classified as debt financial assets at FVTOCI since
they are held within a business model whose objective is achieved by both collecting contractual cash flows andselling financial assets.

53

SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 2018(3) Significant accounting policies for SoftBank Vision Fund and Delta Fund segment
For Softbank Vision Fund and Delta Fund, the Company applies the same accounting policies as follows.
a. Consolidation of the SoftBank Vision Fund and Delta Fund segment by the Company
SoftBank Vision Fund and Delta Fund are limited Partnerships established by their respective General Partners which
are wholly-owned subsidiaries of the Company, and by their form of organization, qualify as structured entities.
SoftBank Vision Fund and Delta Fund are consolidated by the Company for the following reasons.
The various entities comprising SoftBank Vision Fund and Delta Fund make investment decisions through theirrespective Investment Committee, which were established as committees of SBIA. SBIA is an advisory company andis a wholly-owned subsidiary of the Company. As such, the Company has power as defined under IFRS 10“Consolidated Financial Statements” over SoftBank Vision Fund and Delta Fund. Furthermore, SBIA receives
performance fees and the Company receives distributions attributable to limited Partners based on the investment
performance as returns from the Funds. The Company has the ability to affect those returns through its power over theFunds, and therefore, the Company is deemed to have control as stipulated in IFRS 10 over each Fund.
Inter-company transactions such as management fees and performance fees to SBIA paid or to be paid from SoftBank
Vision Fund and Delta Fund are eliminated in consolidation.
b. Portfolio company investments made by SoftBank Vision Fund and Delta Fund(a) Investments in subsidiaries
Of the portfolio company investments made by SoftBank Vision Fund, the portfolio companies that the Company isdeemed to control under IFRS 10 are subsidiaries of the Company. Accordingly, their results of operations, assets
and liabilities are included in the Company’s condensed interim consolidated financial statements.
Gain and loss on investments in the subsidiaries of the Company which are recognized in the SoftBank Vision Fundare eliminated in consolidation.
(b) Investments in associates and joint ventures
Of the portfolio company investments made by SoftBank Vision Fund, the portfolio companies over which theCompany has significant influence under IAS 28 “Investments in Associates and Joint Ventures” are associates of
the Company, and the portfolio companies that are joint ventures of the SoftBank Vision Fund when, as defined
under IFRS 11 “Joint Arrangements,” the SoftBank Vision Fund has joint control with other investors undercontractual arrangements and the investors have rights to the net assets of the arrangement.
The investments in associates and joint ventures of the Company made by SoftBank Vision Fund are accounted for
as financial assets at FVTPL in accordance with paragraph 18 of IAS 28, and presented as “Investments from
SoftBank Vision Fund and Delta Fund accounted for using FVTPL” in the condensed interim consolidated statementof financial position. The payments for these investments are presented as “Payments for acquisition of investments
by SoftBank Vision Fund and Delta Fund” under cash flows from investing activities in the condensed interim
consolidated statement of cash flows.
(c) Other investments
Investments other than those in associates or joint ventures of the Company made by the SoftBank Vision Fund andDelta Fund are accounted for as financial assets at FVTPL. The presentation of these investments in the condensed
interim consolidated statement of financial position and the condensed interim consolidated statement of cash flows
are the same as the above “(b) Investments in associates and joint ventures.”c. Presentation of the results from the SoftBank Vision Fund and Delta Fund business
Income and loss arising from the SoftBank Vision Fund and Delta Fund business are separated from operating income
and loss arising from other businesses, recognized as a component of operating income, and presented as “Operating
income from SoftBank Vision Fund and Delta Fund” in the condensed interim consolidated statement of income. Gain
and loss arising from “b. Portfolio company investments made by SoftBank Vision Fund and Delta Fund” (realized
gain and loss on sales of investments, unrealized gain and loss on valuation of investments, interest and dividend
income from investments, except for gain and loss on investments in subsidiaries) and operating expenses such asincorporation expenses of entities that comprise SoftBank Vision Fund and Delta Fund, investment research expenses
arising from SBIA, and administrative expenses arising from each entity, are included in “Operating income from
SoftBank Vision Fund and Delta Fund.”54

SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 2018

d. Bridge Investments
Investments acquired by SoftBank Group Corp. or its subsidiaries with the premise of offering to SoftBank Vision
Fund and Delta Fund and were made in accordance with the investment eligibility criteria of the SoftBank Vision
Fund at the time of acquisition (“Bridge Investments”) are accounted for as financial assets at FVTPL. The Company
recognizes the decision to transfer such investments after the Company obtains consent from the investmentcommittee and other bodies (and certain limited partners, if applicable) at SoftBank Vision Fund and approvals fromrelevant regulatory authorities. The Company changes the presentation of Bridge Investments in its consolidated
financial statements in the annual period in which the Company recognizes the decision to transfer such investments(hereafter phrased as “the transfer is agreed”) as further described below.
(a) Investments made in the nine-month period ended December 31, 2018
If the transfer is agreed in the nine-month period ended December 31, 2018, the Company presents items relevant tothose investments as if SoftBank Vision Fund and Delta Fund had made those investments from the date when the
Company initially made the investments. Those items would be presented as “Investments from SoftBank Vision
Fund and Delta Fund accounted for using FVTPL” in the condensed interim consolidated statement of financial
position, “Operating income from SoftBank Vision Fund and Delta Fund” in the condensed interim consolidated
statement of income, and “Payments for acquisition of investments by SoftBank Vision Fund and Delta Fund” undercash flows from investing activities in the condensed interim consolidated statement of cash flows.
On the other hand, if the investments have not yet been agreed as of December 31, 2018, the Company presents
items relevant to those investments as “Investment securities” in the condensed interim consolidated statement offinancial position, “Gain from financial instruments at FVTPL” in the condensed interim consolidated statement ofincome, and “Payments for acquisition of investments” under cash flows from investing activities in the condensed
interim consolidated statement of cash flows.
(b) Investments made on or prior to March 31, 2018
i. Investments for which the transfer is agreed in the nine-month period ended December 31, 2018
If the transfer is agreed in the nine-month period ended December 31, 2018, the Company presents the carrying
amounts of those investments as if the investments had been agreed to be transferred at April 1, 2018. Thoseinvestments would be presented as “Investments from SoftBank Vision Fund and Delta Fund accounted for using
FVTPL” in the condensed interim consolidated statement of financial position as of December 31, 2018 and withthe respective gain and loss on those investments as “Operating income from SoftBank Vision Fund and Delta Fund”
in the condensed interim consolidated statement of income for the nine-month period ended December 31, 2018.
For the periods prior to April 1, 2018, the following presentation would be applied. The carrying amounts of thoseinvestments are presented as “Investment securities” in the condensed interim consolidated statement of financial
position as of March 31, 2018, gain and loss on investments as “Gain from financial instruments at FVTPL” in thecondensed interim consolidated statement of income for the nine-month period ended December 31, 2017, andpayments for acquisition of investments as “Payments for acquisition of investments” under cash flows frominvesting activities in the condensed interim consolidated statement of cash flows for the nine-month period ended
December 31, 2017.
ii. Investments for which the transfer is agreed on or prior to March 31, 2018
If the transfer is agreed on or prior to March 31, 2018, the Company presents the carrying amounts of thoseinvestments as if the investments had been agreed to be transferred at April 1, 2017. Those investments would bepresented as “Investments from SoftBank Vision Fund and Delta Fund accounted for using FVTPL” in thecondensed interim consolidated statement of financial position as of March 31, 2018 and the respective gain andloss on those investments as “Operating income from SoftBank Vision Fund and Delta Fund” in the condensed
interim consolidated statement of income for the nine-month period ended December 31, 2017, and payments foracquisition of investments as “Payments for acquisition of investments by SoftBank Vision Fund and Delta Fund”
under cash flows from investing activities in the condensed interim consolidated statement of cash flows for thenine-month period ended December 31, 2017.
e. Investments that are not Bridge Investments and for which the transfer is agreed
For investments that are not Bridge Investments, when the transfer is agreed, the Company continues to apply thesame accounting treatment followed in the periods prior to the agreement. They are accounted for as financial assets at
FVTPL for the nine-month period ended December 31, 2018.
55

SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 2018

If the transfer is agreed in the nine-month period ended December 31, 2018, the Company presents the carrying
amounts of those investments as of December 31, 2018 as if the investments had been made by SoftBank Vision Fundon the date the transfer was agreed. Those investments would be presented as “Investments from SoftBank Vision
Fund and Delta Fund accounted for using FVTPL” in the condensed interim consolidated statement of financial
position as of December 31, 2018, the difference between the carrying amount and the transferred amount and therespective gain and loss on those investments arising from the difference between the transferred amount and fairvalue as of December 31, 2018 as “Gain and loss from financial instruments at FVTPL” and “Operating income from
SoftBank Vision Fund and Delta Fund” in the condensed interim consolidated statement of income for the nine-month
period ended December 31, 2018, respectively, and payments for acquisition of such investments as “Payments foracquisition of investments” under cash flows from investing activities in the condensed interim consolidated statementof cash flows for the nine-month period ended December 31, 2018.
f. Contribution from limited Partners to SoftBank Vision Fund and Delta Fund
SoftBank Vision Fund and Delta Fund issue capital calls from their respective limited partners (“Capital Call”).
(a) Contribution from Limited Partners other than the Company
The interests attributable to limited partners of SoftBank Vision Fund and Delta Fund other than the Company(“Third-Party Investors”) are classified as financial liabilities, “Third-party interests in SoftBank Vision Fund andDelta Fund” in the condensed interim consolidated statement of financial position, due to the predetermined finite
life (in principle, until November 20, 2029 for SoftBank Vision Fund and until September 27, 2029 for Delta Fund)and contractual payment provision to each of the limited partners at the end of the finite life within SoftBank Vision
Fund and Delta Fund’s limited partnership agreements. The liabilities are classified as “financial liabilities measured
at amortized cost” upon initial recognition. The carrying amounts attributable to Third-Party Investors represent theamounts that would be distributed in accordance with the limited partnership agreement in a theoretical liquidation
scenario at the end of each quarter.
“Third-party interests in SoftBank Vision Fund and Delta Fund” fluctuate due to the results of SoftBank Vision Fundand Delta Fund in addition to contributions from Third-Party Investors in satisfaction of Capital Calls, anddistributions and repayments of investments to Third-Party Investors. The fluctuations due to the results of SoftBank
Vision Fund and Delta Fund are presented as “Change in third-party interests in SoftBank Vision Fund and Delta
Fund” in the condensed interim consolidated statement of income.
Contributions from Third-Party Investors to SoftBank Vision Fund and Delta Fund are included in “Contributions
into SoftBank Vision Fund and Delta Fund from third-party investors” under cash flows from financing activities in
the condensed interim consolidated statement of cash flows. The distributions and repayments of investments toThird-Party Investors are included in “Distribution/repayment from SoftBank Vision Fund and Delta Fund to
third-party investors” under cash flows from financing activities in the condensed interim consolidated statement ofcash flows.
Uncalled committed capital from Third-Party Investors is not subject to IFRS 9, “Financial Instruments,” andtherefore such amount is not recorded in the condensed interim consolidated statement of financial position.
(b) Contribution from the Company
Contribution from the Company to SoftBank Vision Fund and Delta Fund as a limited partner is eliminated inconsolidation.

56

SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 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.
For the fiscal year ended March 31, 2018, the Company had six reportable segments, the Domestic
Telecommunications segment, the Sprint segment, the Yahoo Japan segment, the Distribution segment, the Armsegment, and the SoftBank Vision Fund and Delta Fund segment. However, from the three-month period ended
June 30, 2018, in accordance with changes in the Company’s organization based on its unique organizational
strategy, Cluster of No.1 Strategy, the Company has revised its segment classifications to the following six
reportable segments: the SoftBank segment, the Sprint segment, the Yahoo Japan segment, the Arm segment, theSoftBank Vision Fund and Delta Fund segment, and the Brightstar segment.
The SoftBank segment provides, mainly through SoftBank Corp., mobile communications services, sale ofmobile devices, fixed-line telecommunication services such as broadband services in Japan, and through
SoftBank Commerce & Service Corp. (currently SB C&S Corp.), sale of mobile device accessories, PC software,and peripherals 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 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 segment income of the SoftBank Vision Fund and Delta Fund segment consists of gain and loss
arising from investments, including subsidiaries, held by SoftBank Vision Fund and Delta Fund or theinvestments that transfer is agreed (gain and loss on investments at SoftBank Vision Fund and Delta Fund), andoperating expenses and other expenses incurred in SoftBank Vision Fund, Delta Fund, and SBIA.
The Brightstar segment provides, through Brightstar, distribution of mobile devices overseas.
Information on business segments which are not included in the reportable segments is classified in “Other.”“Other” includes mainly Fortress 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 manage and supervise investment activities in the Internet, communication, and media fields overseas,
are included in corporate general expenses.
Segment information for the nine-month period ended December 31, 2017 and the three-month period ended
December 31, 2017 is presented based on the reportable segments after the change.
(2) Net sales and income of reportable segments
Income of reportable segments is defined as “Operating income.” Intersegment transaction prices are determined
under the same general business conditions as applied for external customers.
The Company also discloses EBITDA (i.e., segment income and loss after addition of depreciation andamortization excluding amortization relating to costs to obtain contracts) and adjusted EBITDA (i.e., EBITDA
after addition or deduction of gain relating to loss of control over subsidiaries, adjustments relating toinvestments in SoftBank Vision Fund and Delta Fund (unrealized gain and loss on valuation of investments andeffect of foreign exchange translation), and other adjustments (gains are deducted)) by each reportable segment.
57

SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 2018

“Other adjustments” are special items, such as acquisition-related costs and impairment loss mainly included inother operating income and loss.
Adjusted EBITDA in SoftBank Vision Fund and Delta Fund segment is defined as the total amount of difference
between the realized amount by sales of investments and acquisition costs (“realized gain and loss from sales ofinvestments”) and interest and dividend income from investments with deduction of operating expenses(excluding depreciation and amortization).
Income and loss, which is not attributable to operating income and loss, such as financial cost and income andloss on equity method investments, is not managed by each reportable segment and therefore these income andlosses are excluded from segment performance.
For the nine-month period ended December 31, 2017
(Millions of yen)

Reportable segments
SoftBank
Vision Fundand Delta Fund

SoftBank

Sprint

Yahoo
Japan

Customers

2,643,783

2,573,024

628,050

152,420-

763,422

Intersegment

30,389149,129

17,3562-

20,247217,123

2,674,172

2,722,153

645,406

152,422-783,669

6,977,822

610,925

291,841

140,486(21,865)

236,427(52,129)

1,205,685

140,486(21,865)

236,427(52,129)

1,205,685

Arm

Total

Brightstar

Net sales

Total
Segment income

6,760,699

Reconciliation of segment income to adjusted EBITDA
Segment income
Depreciation andamortization

610,925

291,841

355,752

708,307

30,87046,158-4,449

1,145,536

EBITDA
Adjustments relating toinvestments in SoftBank
Vision Fund and Delta
Fund
Unrealized gain (loss) on
valuation of investments
Other adjustments

966,677

1,000,148

171,356

24,293

236,427(47,680)

2,351,221

-

-

-

-

(251,108)-(251,108)

13,584(61,323)(7,896)--50,497(5,138)Adjusted EBITDA

980,261

938,825

163,460

24,293(14,681)2,817

2,094,975(Millions of yen)

Reconciliations

Other

Consolidated

Net sales
Customers

50,575-

6,811,274

Intersegment

7,541(224,664)

-

Total

58,116(224,664)

6,811,274

Segment income(19,507)(37,349)

1,148,829

Reconciliation of segment income to adjusted EBITDA
Segment income
Depreciation andamortization(19,507)(37,349)

1,148,829

EBITDA
Adjustments relating toinvestments in SoftBank
Vision Fund and Delta
Fund
Unrealized gain (loss) on
valuation of investments
Other adjustments

5,637

1,202

1,152,375(13,870)(36,147)

2,301,204--(251,108)

9,912

1,427

6,201

Adjusted EBITDA(3,958)(34,720)

2,056,297

58

SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 2018

For the nine-month period ended December 31, 2018
(Millions of yen)

Reportable segments
SoftBank
Vision Fundand Delta Fund

SoftBank

Sprint

Yahoo
Japan

Customers

2,747,466

2,645,659

686,236

146,043-

793,192

7,018,596

Intersegment

30,056

148,788

16,63576-

19,279214,834

2,777,522

2,794,447

702,871

146,119-

812,471

7,233,430

639,982

255,318

115,328

137,205

808,792(9,222)

1,947,403

Arm

Total

Brightstar

Net sales

Total
Segment income

Reconciliation of segment income to adjusted EBITDA
Segment income
Depreciation andamortization

639,982

255,318

115,328

137,205

808,792(9,222)

1,947,403

346,036

784,01340,49349,39548

4,991

1,224,976

EBITDA
Gain relating to loss ofcontrol over subsidiaries
Adjustments relating toinvestments in SoftBank
Vision Fund and Delta
Fund
Unrealized gain (loss) on
valuation of investments
Effect of foreignexchange translation

986,018

1,039,331

155,821

186,600

808,840(4,231)

3,172,379---(176,261)--(176,261)

-

-

-

-

(693,296)-(693,296)

-

-

-

-

4,291

-

4,291

Other adjustments

81

40,800(3,751)---37,130Adjusted EBITDA

986,099

1,080,131

152,070

10,339

119,835(4,231)

2,344,243(Millions of yen)

Reconciliations

Other

Consolidated

Net sales
Customers

149,856-

7,168,452

Intersegment

8,840(223,674)

-

Total

158,696(223,674)

7,168,452

Segment income(39,881)(48,515)

1,859,007

Reconciliation of segment income to adjusted EBITDA
Segment income
Depreciation andamortization(39,881)(48,515)

1,859,007

28,674611

1,254,261

EBITDA
Gain relating to loss ofcontrol over subsidiaries
Adjustments relating toinvestments in SoftBank
Vision Fund and Delta
Fund
Unrealized gain (loss) on
valuation of investments
Effect of foreignexchange translation(11,207)(47,904)

3,113,268--(176,261)--(693,296)

-

-

4,291

Other adjustments

3,859

-

40,989Adjusted EBITDA(7,348)(47,904)

2,288,991

59

SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 2018

For the three-month period ended December 31, 2017
(Millions of yen)

Reportable segments

SoftBank

SoftBank
Vision Fundand Delta Fund

Sprint

Yahoo
Japan

Arm

860,741

217,725

58,745

Total

Brightstar

Net sales
Customers

955,062-

291,798

2,384,071

Intersegment

12,54868,085

6,317

1

-

7,031

93,982

Total

967,610928,826

224,042

58,746-

298,8292,478,053

Segment income

170,149

89,66549,245(7,071)50,189(51,761)

300,416

50,189(51,761)

300,416

Reconciliation of segment income to adjusted EBITDA
Segment income
Depreciation andamortization

170,149

89,66549,245(7,071)

126,789244,316

10,78015,873-

1,435

399,193

EBITDA
Adjustments relating toinvestments in SoftBank
Vision Fund and Delta
Fund
Unrealized gain (loss) on
valuation of investments

296,938

333,981

60,0258,802

50,189(50,326)

699,609

-

-

-

-

(56,772)-(56,772)

Other adjustments

13,584(24,187)(2,967)--50,49736,927

Adjusted EBITDA

310,522309,794

57,058

8,802(6,583)

171

679,764(Millions of yen)

Reconciliations

Other

Consolidated

Net sales
Customers

16,068-Intersegment

2,400,139

2,053(96,035)-

Total

18,121(96,035)

2,400,139

Segment income(13,807)(12,619)

273,990

Reconciliation of segment income to adjusted EBITDA
Segment income
Depreciation andamortization(13,807)(12,619)

273,990

2,298

377

401,868

EBITDA
Adjustments relating toinvestments in SoftBank
Vision Fund and Delta
Fund
Unrealized gain (loss) on
valuation of investments(11,509)(12,242)

675,858(56,772)--

Other adjustments

9,912

(110)

46,729Adjusted EBITDA(1,597)(12,352)

665,81560

SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 2018

For the three-month period ended December 31, 2018
(Millions of yen)

Reportable segments

SoftBank

SoftBank
Vision Fundand Delta Fund

Sprint

Yahoo
Japan

Arm

904,070

243,742

54,352

Total

Brightstar

Net sales
Customers

970,181-

281,371

2,453,716

Intersegment

12,23866,353

5,489

74

-

6,099

90,253

Total

982,419

970,423

249,23154,426-

287,470

2,543,969

Segment income

193,037

61,99037,599(4,037)

176,358(349)

464,598

176,358(349)

464,598

Reconciliation of segment income to adjusted EBITDA
Segment income
Depreciation andamortization

193,037

61,99037,599(4,037)

120,327

266,685

14,29911,74317

2,432

415,503

EBITDA
Adjustments relating toinvestments in SoftBank
Vision Fund and Delta
Fund
Unrealized gain (loss) on
valuation of investments

313,364

328,675

51,898

7,706

176,375

2,083

880,101

-

-

-

-

(188,937)-(188,937)

Other adjustments-

24,260----24,260Adjusted EBITDA

313,364

352,935

51,898

7,706(12,562)

2,083

715,424(Millions of yen)

Reconciliations

Other

Consolidated

Net sales
Customers

60,883-

Intersegment

2,514,599

3,002(93,255)-

Total

63,885(93,255)

2,514,599

Segment income(14,765)(11,542)438,291

Reconciliation of segment income to adjusted EBITDA(14,765)(11,542)438,291

14,139103429,745

EBITDA
Adjustments relating toinvestments in SoftBank
Vision Fund and Delta
Fund
Unrealized gain (loss) on
valuation of investments(626)(11,439)

868,036--(188,937)

Other adjustments

2,285

-

26,545Adjusted EBITDA

1,659(11,439)705,644

Segment income
Depreciation andamortization

61

SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 2018

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

Nine-month period ended
December 31, 2017

Nine-month period ended
December 31, 2018-

146,682

251,108

693,296

3,744
254,852

3,092(4,291)
838,779(18,425)(29,987)

236,427

808,792

Finance cost (interest expenses)4(1,665)(18,919)

Foreign exchange gain and loss

17

66

10,529249,439(108,163)(453,529)

Other non-operating income and loss

(2,420)(910)

Income before income tax

134,725584,939

Gain and loss on investments at SoftBank Vision
Fund and Delta Fund
Realized gain and loss on sales of aninvestmemt1
Unrealized gain and loss on valuation of
investments2
Interest and dividend income from investments
Effect of foreign exchange translation3
Operating expenses
Operating income from SoftBank Vision Fundand Delta Fund

5

Derivative gain and loss
Change in third-party interests in SoftBank Vision
Fund and Delta Fund

Notes:
1. SoftBank Vision Fund sold the shares in Flipkart Private Limited (“Flipkart”) in August 2018. The gain realizedon the sale is translated using the average foreign currency exchange rate for the three-month period ended in
September 30, 2018.
2. For investments transferred or agreed to be transferred from the Company to Softbank Vision Fund, gain and loss
on those investments arising from difference between transferred amount and fair value as of each accounting
period end (“gain and loss from the difference”) are presented as “Operating income from SoftBank Vision Fundand Delta Fund.” In the three-month period ended December 31, 2018, certain investments were transferred oragreed to transfer. In the six-month period ended September 30, 2018, the “gain and loss from the difference”
relating to those investments were presented as “Gain from financial instruments at FVTPL” of ¥124,092 millionand “Gain from remeasurement relating to discontinuing the use of the equity method” of ¥67,306 million,
respectively. In the condensed interim consolidated statement of income for the nine-month period ended
December 31, 2018, the “gain and loss from the difference” are presented as “Operating income from SoftBank

62

SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 2018

Vision Fund and Delta Fund.” The details of “Gain from remeasurement relating to discontinuing the use of theequity method” are described in “Note 15. Gain from remeasurement relating to discontinuing the use of theequity method.”
3. Mainly, the effect of foreign exchange translation is derived by the difference between the average foreign
currency exchange rate prevailing in the three-month period ended in June 2018 that was used to calculate theunrealized gain on the investment in Flipkart and the average foreign currency exchange rate used to calculate therealized gain.
4. The amount before elimination of inter-company transactions is ¥(19,236) million for the nine-month period
ended December 31, 2018 (¥(1,708) million for the nine-month period ended December 31, 2017).
5. Mainly derivative gain arising from collar transactions whose underlying is NVIDIA Corporation (“NVIDIA”)
shares.
On January 10, 2019, SoftBank Vision Fund determined to exit its investment in NVIDIA (the carrying amountas of December 31, 2018 is ¥398,240 million). SoftBank Vision Fund had entered into collar transactions
utilizing NVIDIA shares for financing and on January 25, 2019, SoftBank Vision Fund executed an early unwindof the collar transactions by unwinding the options and electing to deliver the NVIDIA shares for the repaymentof current portion of long-term borrowings (the carrying amount as of December 31, 2018 is ¥629,337 million).
Derivative assets of ¥246,004 million (recorded as “Other financial assets” under current assets) and derivative
liabilities of ¥1,228 million (recorded as “Derivative financial liabilities” under current liabilities), which wererecorded related to the collar transactions in the condensed interim consolidated statement of financial position asof December 31, 2018, were derecognized at the date of unwinding the collar transactions. In addition, NVIDIA
shares not utilizing the collar transactions were sold on January 22, 2019. The Company is currently evaluating
the potential impacts related to these transactions on the consolidated statement of income and the consolidated
statement of cash flows for the fiscal year ending March 31, 2019.

(2) Third-party interests in SoftBank Vision Fund and Delta Fund
Changes in interests attributable to Third-Party Investors (“Third-party interests in SoftBank Vision Fund andDelta Fund”) are as follows:(Millions of yen)(For reference purposes only)
Links with the condensed interim consolidated
financial statements

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

Consolidated statement Consolidated statementof incomeof cash flows(Negative figures represent (Negative figures represent
expenses)
payments)(Breakdown)
As of April 1, 2018
Contributions from third-party
investors

1,844,679
1,892,414-

1,892,414

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

453,529(453,529)-

Distribution to third-party investors(261,492)-(261,492)

66,739386,790

Fixed distributions(85,257)
1

Performance-based distributions(176,235)

Repayment to third-party investors
Exchange differences on translating
third-party interests2(193,788)-(193,788)

56,672--As of December 31, 2018

3,792,014

63

SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 2018

Notes:
1. SBIA has a right to receive performance fees based on investment performance of SoftBank Vision Fund and Delta
Fund. However, performance fees from monetization of investments are not paid to SBIA during the investment
period of Softbank Vision Fund (in principle, until November 20, 2022), instead equivalent amount as theperformance fees attributable to SBIA is temporarily paid to the limited partners during the period, under a limited
partnership agreement. After the investment period, the equivalent amount is distributed to SBIA as a performance fee,
which is given priority over performance-based distribution to limited partners from monetization of investments inpost-investment period. The equivalent amount as the performance fees attributable to SBIA, which were temporarily
paid to the limited partners, is ¥(47,979) million for the nine-month period ended December 31, 2018.
2. Exchange differences were included in “Exchange differences on translating foreign operations” in the condensed
interim consolidated statement of comprehensive income.

(3) Uncalled committed capital from Third-Party Investors
Uncalled committed capital from Third-Party Investors as of December 31, 2018 is $32.6 billion.

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

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

As of
December 31, 2018249,2612,278,545
938,280
88,519421,808
111,016
4,087,429

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

As ofMarch 31, 2018
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
December 31, 2018

3,960,597
664,878
12,226

4,153,510
692,614
12,763739,901
521,603
332,444
125,866
115,333
89,27857,357
165,067
6,784,550

711,591
466,592
265,775
150,703
99,53083,32057,364
194,0226,887,784

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.

64SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 2018

6. Investment securities
Of investment securities held by the Company, investment securities transferred or agreed to be transferred from theCompany to Softbank Vision Fund were transferred from “Investment securities” to “Investments from SoftBank
Vision Fund and Delta Fund accounted for using FVTPL” in the condensed interim consolidated statement offinancial position in the nine-month period ended December 31, 2018. The carrying amount of the investment
securities is ¥1,827,075 million as of March 31, 2018.
7. Income taxes
On December 19, 2018, SoftBank Corp. shares were listed on the Tokyo Stock Exchange First Section. Along withthe listing, a portion of SoftBank Corp. shares (ownership percentage 33.50%) held by SoftBank Group Japan
Corporation, a wholly-owned subsidiary of the Company, was disposed and ¥2,349,832 million of proceeds wasreceived. As a result, the ownership percentage in SoftBank Corp. by the Company has changed from 99.99% to66.49%. As SoftBank Corp. remains a subsidiary, ¥750,804 million, the equivalent amount of income taxes for gainon sales of SoftBank Corp. shares on a consolidation basis, is deducted from capital surplus as “Changes in interestsin subsidiaries.”
In regard to the transaction, a loss carryforward whose deferred tax asset was not recognized, was used and income
taxes decreased by ¥345,228 million. Accordingly, a deductible temporary difference, associated with an investment
in SoftBank Corp. whose deferred tax asset was not recognized, was reversed and income taxes decreased by ¥60,349
million.

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

As ofMarch 31, 2018
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 financial liabilities relating to sale ofshares by variable prepaid forward contract2
Current portion of installment payables
Total
Non-current
Long-term borrowings1
Corporate bonds
Lease obligations
Financial liabilities relating to sale of shares by variable
prepaid forward contract2
Installment payables
Total

65

As of
December 31, 2018

957,573
100,000
1,093,705
590,277455,670

468,300
92,0001,582,624
924,712447,195-

727,776

20,1803,217,405

14,082
4,256,689

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

5,227,190
6,778,493
784,793

688,332-

14,607
13,824,783

6,619
12,797,095

SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 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:(Millions of yen)

As ofMarch 31, 2018
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 ofDecember 31, 201887,259313,143
400,402873,141
629,337
1,502,478

108,749
108,749

12,845
12,845509,151

1,515,323(10,744)(885,986)

498,407629,337

2. 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.
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; ¥727,776 million is recognized as the current portion of financial liabilities relating to the sale of sharesthrough the variable prepaid forward contract in interest-bearing debt (current liabilities) (¥688,332 million
recognized as financial liabilities relating to the sale of shares through the variable prepaid forward contract ininterest-bearing debt (non-current liabilities) as of March 31, 2018) and ¥385,158 million is recognized as
derivative financial liabilities (current liabilities) in the condensed interim consolidated statement of financial
position as of December 31, 2018 (¥714,126 million recognized as derivative financial liabilities (non-current
liabilities) as of March 31, 2018); ¥365,857 million is recognized as a derivative gain in the condensed interim
66SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 2018

consolidated statement of income for the nine-month period ended December 31, 2018 (¥510,278 million ofderivative loss for the nine-month period ended December 31, 2017).
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 condensed interim
consolidated statement of financial position as of December 31, 2018. The carrying amount of Alibaba shares
pledged as collateral by the Company is ¥246,507 million as of December 31, 2018 (¥217,182 million as ofMarch 31, 2018).

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

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

Alibaba shares pledged as collateralby variable prepaid forward contract

Mandatory Exchangeable TrustOffering of Mandatory Exchangeable
Trust Securities (“Trust Securities”)$6.6 billion for the total issuanceamount of Trust Securities
Investors(3) Components of proceeds in short-term interest-bearing debt, net
The components of “Proceeds in short-term interest-bearing debt, net” in the condensed interim consolidated
statement of cash flows are as follows:(Millions of yen)

Nine-month period ended Nine-month period ended
December 31, 2017
December 31, 2018292,582354
20,000(8,000)312,582(7,646)

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

67

SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 2018

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

Nine-month period ended Nine-month period ended
December 31, 2017
December 31, 2018
3,687,621
4,310,676
735,804
747,744

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

361,777

397,346

4,785,202

5,455,766(5) Components of repayment of interest-bearing debt
The components of “Repayment of interest-bearing debt” in the condensed interim consolidated statement of cash
flows are as follows:(Millions of yen)

Nine-month period ended Nine-month period ended
December 31, 2017
December 31, 2018
(3,378,241)(4,371,128)(459,903)(955,504)(367,238)(390,676)(33,164)(14,975)(4,238,546)(5,732,283)

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

9. Foreign currency exchange rates
Exchange rates of the major currencies used for translating financial statements of foreign operations are as follows:(1) Rate at the end of the period
(Yen)
As of
December 31, 2018
111.00140.46

As ofMarch 31, 2018106.24148.84USD
GBP(2) Average rate for the quarter

For the nine-month period ended December 31, 2017

USD
GBP

Three-month period ended
June 30, 2017111.61142.92(Yen)
Three-month period ended Three-month period ended
September 30, 2017
December 31, 2017111.38112.74146.20150.77For the nine-month period ended December 31, 2018

USD
GBP

Three-month period ended
June 30, 2018108.71147.54(Yen)
Three-month period ended Three-month period ended
September 30, 2018
December 31, 2018111.55112.83145.84144.4868

SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 2018

10. Equity(1) Capital surplus
For the nine-month period ended December 31, 2018a. In August, 2018, SoftBank Corp. acquired Yahoo Japan Corporation shares mainly from Altaba Inc. at ¥221.0
billion (ownership percentage 10.78%). In addition, Yahoo Japan Corporation acquired its own shares from
SoftBank Group Japan Corporation, a wholly-owned subsidiary of the Company, at ¥220.0 billion (ownership
percentage 10.73%). As a result of the transaction, the ownership percentage in Yahoo Japan Corporation by theCompany has changed from 42.95 % to 48.17%. Subsequently, ¥56,632 million is deducted from capital surplus
as “Changes in interests in subsidiaries.”b. On December 19, 2018, a portion of SoftBank Corp. shares (ownership percentage 33.50%) held by SoftBank
Group Japan Corporation, a wholly-owned subsidiary of the Company, was disposed. As a result, the ownership
percentage in SoftBank Corp. by the Company has changed from 99.99% to 66.49%.
Associated with the transaction, ¥1,221,363 million, the amount equivalent to gain on the disposal of SoftBank
Corp. shares after considering taxes on a consolidation basis, is recorded as “Changes in interests in subsidiaries”
under capital surplus.
(2) Other equity instruments
On July 19, 2017, the Company issued USD-denominated Undated Subordinated Non-Call 6 years Resettable
Notes and USD-denominated Undated Subordinated Non-Call 10 years Resettable Notes (collectively, the“Hybrid Notes”).
The Hybrid Notes are classified as equity instruments in accordance with IFRSs because the Company has theoption to defer interest payments, the notes have no maturity date, and the Company has an unconditional right toavoid delivering cash or another financial asset except for distribution of residual assets on liquidation.
(3) Accumulated other comprehensive income
The components of accumulated other comprehensive income are as follows:(Millions of yen)

As ofMarch 31, 2018

As ofDecember 31, 2018

Available-for-sale financial assets

63,700-Equity financial assets at FVTOCI

-

5,040

Debt financial assets at FVTOCI-

134(55,286)(87,683)

309,545

161,521317,959

79,012

Cash flow hedges
Exchange differences on translating
foreign operations
Total

Note:
In accordance with the adoption of IFRS 9 “Financial Instruments” and IFRS 15 “Revenue from Contracts with
Customers,” cumulative effects of retrospective adjustments are recognized as adjustments to the opening balance ofretained earnings and accumulated other comprehensive income. The details are described in “(2) Effect of adopting
new standards and interpretations” under “Note 1. Significant accounting policies.”

69

SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 2018

11. Gain relating to loss of control over subsidiaries
On June 26, 2018, Arm Limited, a British subsidiary of the Company, sold a 51% equity interest in its Chinese
subsidiary, Arm Technology (China) Co., Ltd. (“Arm China”), for $845 million to entities representing certain
institutional investors and certain of Arm’s ecosystem partners in order to form a joint venture for Arm’s
semiconductor technology IP business in China.
As a result of the transaction, Arm China is no longer considered as a subsidiary of the Company and has become
an associate accounted for using the equity method. Gain relating to loss of control over subsidiaries recognizedarising from the transaction is ¥176,261 million.
12. Other operating loss
The components of other operating income and loss are as follows:(Millions of yen)

SoftBank segment
Write-down of inventories
Other
Sprint segment
Loss on disposal of property, plant andequipment*
Legal reserves
Reversal of favorable lease
Gain on contract termination
Gain on spectrum license exchange
OtherYahoo Japan segment
Gain from remeasurement relating to businesscombination
Insurance income
Other
Brightstar segment
Impairment loss on goodwill
Impairment loss on non-current assets
Company-wide
Expenses resulting from resignation of director
Other
Loss on equity method investments at Fortress
Acquisition-related costs
Other
Total

Nine-month period ended
December 31, 2017

Nine-month period ended
December 31, 2018(13,585)-(81)(58,344)(71,721)

41,247558
53,4353,023(5,607)(3,810)10,834
(237)

-

3,751

4,929
2,967

-

(43,128)(7,369)-(1,427)-(6,123)(3,788)(27,605)(3,859)(70,730)

Note:* ¥50,901 million of loss resulted from the write-off of leased devices related to lease cancellations prior to the endof the scheduled customer lease terms, where customers did not return the devices to Sprint, are recognized forthe nine-month period ended December 31, 2018.

70

SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 2018

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

Nine-month period ended
December 31, 2017

Nine-month period ended
December 31, 2018

(383,337)(479,396)

14. Derivative gain
For the nine-month period ended December 31, 2018
A derivative gain was recorded for ¥365,857 million related to the Alibaba share collar transaction included in thevariable prepaid forward contract. The details are described in “(2) Transaction for sale of Alibaba shares by
variable prepaid forward contract” under “Note 8. Interest-bearing debt.”
In addition, derivative gain was recorded in SoftBank Vision Fund. The details are described in “b. Income and loss
arising from the SoftBank Vision Fund and Delta Fund business” in “(1) Income and loss arising from the SoftBank
Vision Fund and Delta Fund business included in the condensed interim consolidated statement of income” under“Note 3. SoftBank Vision Fund and Delta Fund business.”

15. Gain from remeasurement relating to discontinuing the use of the equity method
Gain from remeasurement relating to discontinuing the use of the equity method was recorded for ¥ 21,903 million
related to PT Tokopedia in Indonesia, an equity method associate of the Company.
In September 2018, regarding PT Tokopedia, an equity method associate, the voting proxy deed was entered into
between the Company and a shareholder of PT Tokopedia. As a result, the number of voting rights in PT Tokopedia
exercisable by the Company decreased and the Company had no significant influence over PT Tokopedia.
Consequently, PT Tokopedia was no longer qualified as an equity method associate and equity interests in PT
Tokopedia continuously held by the Company on the date of discontinuing the use of the equity method was
remeasured. All investments in PT Tokopedia were subsequently transferred from the Company to SoftBank Vision
Fund in the three-month period ended December 31, 2018.
As a result of the discontinuing the use of the equity method for PT Tokopedia, ¥89,209 million of “Gain fromremeasurement relating to discontinuing the use of the equity method” was recorded for the six-month period ended
September 30, 2018. Subsequent to the transferring PT Tokopedia shares to SoftBank Vision Fund, ¥21,903 million
arising from difference between the carrying amount before discontinuing the use of the equity method and thetransferred amount is recorded as “Gain from remeasurement relating to discontinuing the use of the equity method”
and ¥67,306 million arising from difference between transferred amount and fair value on the date of discontinuing
the use of the equity method is recorded as “Operating income from SoftBank Vision Fund and Delta Fund” for thenine-month period ended December 31, 2018.

71

SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 2018

16. 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
Interst income
Impairment loss on equity method investments2
Loss on redemption of corporate bonds
Other
Total

Nine-month period ended
December 31, 2017
38,922
14,067(6,294)(7,207)Nine-month period ended
December 31, 201833,064
22,628(47,909)(14,538)

4,425
43,913(2,314)(9,069)Notes:
1. Mainly, dilution gain arising from changes in Alibaba’s equity interest held by the Company due to the exerciseof stock options in Alibaba.
2. In regard to the investment in OneWeb Global Limited, its business result and recent business plan were less thanthose at the initial investment by the Company and therefore an impairment test was conducted and ¥45,043
million of impairment loss was recognized for the nine-month period ended December 31, 2018. Fair value lessdisposal cost measured using the cost approach was used for the recoverable amount of investment in OneWeb
Global Limited.

17. Supplemental information to the condensed interim consolidated statement of cash flows(1) Distribution and repayment from SoftBank Vision Fund and Delta Fund to third-party investors
For the nine-month period ended December 31, 2018
The distributions and repayments from SoftBank Vision Fund and Delta Fund to third-party investors are¥(261,492) million and ¥(193,788) million respectively. The details are described in “(2) Third-party interests in
SoftBank Vision Fund and Delta Fund” under “3. SoftBank Vision Fund and Delta Fund business.”(2) Proceeds from the partial sales of shares of subsidiaries to non-controlling interests
For the nine-month period ended December 31, 2018
¥2,349,832 million of proceeds received by sales of SoftBank Corp. shares is included in “Proceeds from thepartial sales of shares of subsidiaries to non-controlling interests.”

18. Significant subsequent events(1) Repayment and purchase back for interest-bearing debt
In January, 2019, the Company repaid a portion of long-term borrowings for which Alibaba shares, held by a
subsidiary of the Company, were pledged as collateral ($4.37 billion) and purchased back a portion of USD-and
EUR-denominated Senior Notes ($0.41 billion and €0.52 billion) using the capital raised mainly by the new listingof SoftBank Corp. shares on December 19, 2018. These transactions were taken to improve the Company’s
financial position.
The interest bearing debt of ¥222,000 million and ¥373,247 million are included in “Interest-bearing debt (current
liabilities) and “Interest-bearing debt (non-current liabilities) respectively, in the condensed interim consolidated72SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 2018statement of financial position as of December 31, 2018. The impact of expenses arising from the transaction on
the financial results for the fiscal year ending March 31, 2019 is immaterial.
(2) Repurchase of treasury shares
On February 6, 2019, SoftBank Group Corp., at the Board of Directors meeting, resolved the repurchase of treasury
shares pursuant to Article 156 of the Companies Act of Japan as applied pursuant to Article 165, Paragraph 3. The
details are as follows:a. Purpose of the share repurchase
To improve shareholder returns.

b. Details of the share repurchase(a) Class of shares to be repurchased

Common stock of SoftBank Group Corp.

(b) Total number of repurchased shares

112,000,000 (maximum)(10.3% of the total number of shares issued (excluding treasury stock))(c) Total repurchase cost¥600.0 billion (maximum)(d) Method of repurchase

Open market purchase through a trust bank(e) Repurchase period

From February 7, 2019 to January 31, 202073