This English translation of the financial report was prepared for reference purposes only and is qualified in its entirety by the original
Japanese version. The financial information contained in this report is derived from our unaudited consolidated financial statements
appearing in item 4 of this report.

SoftBank Group Corp.
Consolidated Financial Report
For the Fiscal Year Ended March 31, 2023 (IFRS)Tokyo, May 11, 2023

1.

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

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

Net sales

Fiscal year ended
March 31, 2023
Fiscal year ended
March 31, 2022

Incomebefore income tax

Net income
AmountAmount%Amount%¥6,570,439

5.6¥(469,127)-¥6,221,534

10.5¥(869,562)- ¥(1,462,199)

Net income
attributable toowners of the parent%¥(789,801)

Amount%Total
comprehensive
incomeAmount¥(970,144)-¥468,140 (32.3)- ¥(1,708,029)-¥691,211 (87.6)-

Basic earnings per share(Yen)

Diluted earnings per
share (Yen)

Ratio of net income
to equity,
attributable toowners of theparent (%)

Fiscal year ended
March 31, 2023¥(652.37)¥(662.41)(10.2)(1.0)

Fiscal year ended
March 31, 2022¥(1,018.58)¥(1,025.67)(16.9)

(1.9)

Note:
* Income (loss) on equity method investments
Fiscal year ended March 31, 2023:
Fiscal year ended March 31, 2022:%

Ratio of income before
income tax to total assets(%)¥(96,677) million¥341,385 million(2) Financial Position
Total assets

Total equity

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

Equity per share
attributable toowners of theparent (Yen)

As of March 31, 2023

¥43,936,368¥10,649,215¥9,029,849

20.6

5,888.94

As of March 31, 2022

¥47,544,670¥11,707,762¥9,975,674

21.0

5,755.92

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

(3) Cash Flows

Fiscal year ended
March 31, 2023
Fiscal year ended
March 31, 2022

Operating activities

Investing activities

Financing activities

Cash and cash
equivalents
at the end of the year

¥741,292¥547,578¥191,517¥6,925,153¥2,725,450¥(3,018,654)¥602,216¥5,169,001

2. Dividends
Dividends per shareFirst quarter

Second quarter

Third quarter

Fourth quarter

(Yen)

(Yen)

(Yen)

(Yen)

-

22.00

-

22.00

44.00

-

22.00

-

22.00

44.00

-

22.00

-

22.00

44.00

Fiscal year ended
March 31, 2022
Fiscal year ended
March 31, 2023
Fiscal year ending
March 31, 2024 (Forecasted)(Millions of yen)%

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

Fiscal year ended
March 31, 2022

73,929-0.8

Fiscal year ended
March 31, 2023

66,285-

0.8

Total amount ofdividends(Annual)Fiscal year ending
March 31, 2024 (Forecasted)

Total

(Yen)

Payout ratio(Consolidated)-

* Notes(1) Significant changes in scope of consolidation (changes in scope of consolidation of specified subsidiaries): Yes
Newly consolidated: None
Excluded from consolidation: One entity: Skybridge Corporation
Notes:
1. Please refer to page 46 “Significant Changes in Scope of Consolidation for the Fiscal Year Ended March 31, 2023” under “3.
Notes to Summary Information” for details.
2. Foreign subsidiaries prepare stand-alone financial statements only under circumstances where it is necessary under their local
laws and practices. Applicability of Cabinet Office Ordinance on Disclosure of Corporate Affairs, etc. Article 19, Paragraph(10), Item (i) to (iii), is determined by using the financial statements.
On the other hand, for foreign subsidiaries that do not prepare stand-alone financial statements, information on the capital andnet assets for those companies is not available. Therefore, Cabinet Office Ordinance on Disclosure of Corporate Affairs, etc.
Article 19, Paragraph (10), Item (i) is used to determine whether the companies are the specified subsidiaries.
The applicability of Cabinet Office Ordinance on Disclosure of Corporate Affairs, etc. Article 19, Paragraph (10), Item (i) is
determined based on the percentage of total amount of purchase from SoftBank Group Corp. and dividend paid to SoftBank
Group Corp. to total amount of operating revenue of SoftBank Group Corp.
For fund-type subsidiaries, the amount of net assets based on financial statements prepared in accordance with the correspondinglaws and practices is used to determine the applicability of Cabinet Office Ordinance on Disclosure of Corporate Affairs, etc.
Article 19, Paragraph (10), Item (ii).
(2) Changes in accounting policies and accounting estimates[1] Changes in accounting policies required by IFRSs: No[2] Changes in accounting policies other than those in [1]: No[3] Changes in accounting estimates: No(3) Number of shares issued (common stock)[1] Number of shares issued (including treasury stock):
As of March 31, 2023:
1,469,995,230 shares
As of March 31, 2022:
1,722,953,730 shares[2] Number of shares of treasury stock:
As of March 31, 2023:
As of March 31, 2022:

6,947,599 shares
76,163,508 shares[3] Number of average shares outstanding during the twelve-month period (April-March):
As of March 31, 2023:
1,542,473,887 shares
As of March 31, 2022:
1,708,988,647 shares

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

Operating revenue

Operating income

Ordinary income

AmountAmount%Amount%

Net income%

Amount%Fiscal year ended
March 31, 2023

¥657,112(23.2)¥592,131(24.8)¥(1,057,199)-¥2,828,995-

Fiscal year ended
March 31, 2022

¥856,003(47.2)¥787,261(49.8)¥(200,263)-¥(352,390)-

Net income pershare-basic (Yen)

Net income pershare-diluted (Yen)

Fiscal year ended
March 31, 2023

¥1,834.06¥1,831.33

Fiscal year ended
March 31, 2022¥(206.20)

¥-

Note:
* Net income per share-diluted for the fiscal year ended March 31, 2022 is not presented as net income per share-basic is negative.

(2) Non-Consolidated Financial Position
Total assets

Net Assets

Equity ratio (%)

Shareholders’ equity
per share (Yen)

As of March 31, 2023

¥24,563,884¥5,734,553

23.3¥3,913.20

As of March 31, 2022

¥22,412,112¥2,759,755

12.3¥1,669.10

Note:* Shareholders’ equity (Non-consolidated)
As of March 31, 2023:
As of March 31, 2022:¥5,725,194 million¥2,748,655 million(3) Differences in Non-Consolidated Operating Results from the Previous Fiscal Year
The increase in net income for the fiscal year ended March 31, 2023 from the previous fiscal year ended March 31, 2022 wasmainly attributable to a ¥5,258,628 million year-on-year increase in gain on sale of investment securities.
Financial Highlights (Non-Consolidated) are prepared in accordance with Accounting Principles Generally Accepted in Japan.

* This consolidated financial report is not subject to audit procedures by certified public accountants or an auditing firm.
* Note to forecasts on the consolidated results of operations and other items
Descriptions regarding the future are estimated based on the information that the Company is able to obtain at the present point intime and assumptions which are deemed to be reasonable. However, actual results may be different due to various factors.
On May 11, 2023 (JST), the Company will hold an earnings results briefing for the media, institutional investors, and financial
institutions. This earnings results briefing will be broadcast live on the Company’s website in both Japanese and English athttps://group.softbank/en/ir. The Data Sheet will also be posted on the website in a few days at the same site.

SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2023

(Appendix)
Contents
1. Results of Operations .....................................................................................................................................
(1) Overview of Results of Operations ..........................................................................................................
a. Consolidated Results of Operations .......................................................................................................
b. Results by Segment ................................................................................................................................
(a) Investment Business of Holding Companies Segment .....................................................................
(b) SoftBank Vision Funds Segment .....................................................................................................
(c) SoftBank Segment ............................................................................................................................
(d) Arm Segment ....................................................................................................................................
(2) Overview of Financial Position ................................................................................................................
(3) Overview of Cash Flows ..........................................................................................................................
(4) Forecasts ...................................................................................................................................................

P.3
P.3
P.5
P.9
P.10
P.15
P.23
P.25
P.29
P.40
P.44

2. Basic Approach to the Selection of Accounting Standards............................................................................. P.45
3. Notes to Summary Information ...................................................................................................................... P.46
Significant Changes in Scope of Consolidation for the Fiscal Year Ended March 31, 2023 ........................ P.46
4. Consolidated Financial Statements and Primary Notes .................................................................................
(1) Consolidated Statement of Financial Position ..........................................................................................
(2) Consolidated Statement of Profit or Loss andConsolidated Statement of Comprehensive Income ................................................................................
(3) Consolidated Statement of Changes in Equity .........................................................................................
(4) Consolidated Statement of Cash Flows ....................................................................................................
(5) Significant Doubt about Going Concern Assumption ..............................................................................
(6) Notes to Consolidated Financial Statements ............................................................................................

P.47
P.49
P.51
P.53
P.57
P.59
P.59

Disclaimer
This material does not constitute an offer to sell, or a solicitation of an offer to buy, limited partnership interests or comparable
limited liability equity interests in any funds (including SoftBank Vision Fund 1, SoftBank Vision Fund 2, and SoftBank Latin
America Funds) managed by any of the subsidiaries of SoftBank Group Corp. (“SBG”), including SB Global Advisers Limited, SB
Investment Advisers (UK) Limited, or their respective affiliates, or any securities in any jurisdiction, nor should it be relied upon as
such in any way.

In addition, this material does not constitute an offer to sell, or a solicitation of an offer to buy, any securities of Arm Limited. Any
offers to sell, solicitations of offers to buy, or sales of securities will be made in accordance with the registration requirements of
the U.S. Securities Act of 1933, as amended, and other applicable securities laws.

Notice Regarding PFIC Status
It is possible that SBG and certain subsidiaries of SBG may be a “passive foreign investment company” (“PFIC”) under the U.S.
Internal Revenue Code of 1986, as amended, for its current fiscal year due to the composition of its assets and the nature of its
income. We recommend that U.S. holders of SBG’s shares consult their tax advisors with respect to the U.S. federal income tax
consequences to them if SBG and its subsidiaries are classified as PFICs. SBG is not responsible for any tax treatments orconsequences thereof with respect to U.S. holders of SBG’s shares.

1

SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2023

Definition of Company Names and Abbreviations Used in This Appendix

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

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

Fiscal year ended March 31, 2022
Fiscal year ended March 31, 2023
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
¥110.00 ¥110.47 ¥113.60 ¥117.10 ¥129.04 ¥138.68 ¥141.16 ¥133.26¥122.39¥133.53

CHANGES IN PRESENTATION OF CONSOLIDATED STATEMENT OF PROFIT OR LOSS ANDREPORTABLE SEGMENTS
Integration of the Latin America Funds Segment into the SoftBank Vision Funds Segment
From the first quarter, the Latin America Funds segment has been integrated into the SoftBank Vision Funds
segment following a review of the segment management classification after SBGA, the manager of SVF2, began
managing LatAm Funds. In line with this, gains and losses on investments at LatAm Funds, which were presented
as gains and losses on investments at Latin America Funds in the past fiscal year, are now included in gains andlosses on investments at SoftBank Vision Funds. Also, the change in third-party interests in LatAm Funds, which
was included in other gains and losses in the past fiscal year, is now included in change in third-party interests in
SVF. Information for the same period of the previous fiscal year has been reclassified and presented accordingly.
Presentations in the Consolidated Statement of Financial Position and Consolidated Statement of Cash Flows havealso been changed. For details, see “1. Changes in presentation” under “(6) Notes to Consolidated Financial
Statements” in “4. Consolidated Financial Statements and Primary Notes.”2

SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2023

1. Results of Operations(1) Overview of Results of Operations
1. Alibaba
The Company recorded gains and losses as a result of the physical settlement of prepaid forward contracts
corresponding to 296 million American Depositary Receipts (ADRs) of Alibaba shares (c and e in thefollowing table). During the course of the physical settlement, the Company’s voting ownership in Alibaba fell
below 20% in the second quarter and Alibaba was therefore excluded from the associates of the Company.
Remeasurement gain was recorded on the shares that continued to be held upon exclusion (d in the following
table).
Gains and losses related to Alibaba shares in the fiscal year
Gains and losses while an associate of the Company
a. Loss on equity method investments
b. Dilution gain from changes in equity interest (net)c. Gain on settlement of prepaid forward contracts using Alibaba shares(gain on sale from physical settlement)
Gains and losses upon exclusion from associates of the Company
d. Gain from remeasurement of Alibaba shares held upon exclusion from associates
Gains and losses after exclusion from associates of the Company
e. Realized loss on investments (loss on sale from physical settlement)
representing the difference between fair value at exclusion from associates and at settlement¥(25.4) billion¥75.7 billion¥841.6 billion¥3,996.7 billion¥(210.9) billion

f. Unrealized loss on valuation of investments
representing a change in the fair value of Alibaba shares that continued to be held at the fiscal
year-end after exclusion from associates

Gains and losses associated with financing activities
g. Finance costh. Derivative gain (excluding gain (loss) on investments)
Total (contribution to income before income tax)¥(254.4) billion¥(107.9) billion¥24.9 billion¥4,340.3 billion

2. SVF*1
Gross performance since inception was an $11.4 billion gain in SVF1 and an $18.3 billion loss in SVF2.
3. Results highlights◆ ¥835.1 billion investment loss (¥526.1 billion gain for the fourth quarter)- ¥4,560.5 billion investment gain at Investment Business of Holding Companies (including a ¥860.9 billion
gain for the fourth quarter), which included· Gain of ¥4,838.3 billion relating to settlement of prepaid forward contracts using Alibaba shares (total of cand d in the above table)· Realized loss of ¥238.0 billion and unrealized valuation loss of ¥142.4 billion- ¥5,322.3 billion investment loss at SoftBank Vision Funds (including a ¥315.5 billion loss for the fourth
quarter), which included· Realized gain (net) of ¥81.7 billion and unrealized valuation loss (net) of ¥1,952.0 billion at SVF1
· Realized loss (net) of ¥3.5 billion and unrealized valuation loss (net) of ¥2,527.5 billion at SVF2
*2
Share prices of numerous public portfolio companies declined for the fiscal year amid the weakness inglobal stock markets, although share prices of several companies rose in the fourth quarter. The fair value of*2
a wide range of private portfolio companies also decreased, reflecting markdowns of weaker-performing
companies and share price declines among market comparable companies.
◆ Loss before income tax of ¥469.1 billion (improvement of ¥400.4 billion yoy) reflecting the recordings of:- Finance cost of ¥555.9 billion- Foreign exchange loss of ¥772.3 billion due to the impact of the weaker yen amid an excess of U.S. dollardenominated liabilities (net) mainly at SBG over its U.S. dollar-denominated cash and cash equivalents andloans receivable- Decrease in third-party interests at SVF of ¥1,127.9 billion◆ Net loss attributable to owners of the parent of ¥970.1 billion (improvement of ¥737.9 billion yoy)reflecting the recordings of:- Income tax of ¥320.7 billion- Net income attributable to non-controlling interests of ¥180.3 billion

3

SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2023

4. Maintained prudent defensive financial management with continued monetization of and contraction in*3
investments, resulting in an improvement in LTV (Loan-to-Value) from the previous fiscal year-end.
◆ Continued monetization of investments- Raised $35.46 billion through prepaid forward contracts using Alibaba shares during the fiscal year.
- SVF1 and SVF2 sold investments (including those through share exchanges) for a total of $6.47 billion in thefiscal year, including full exits of ten portfolio companies, such as Uber and KE Holdings, and partial exits ofseveral public portfolio companies.
- Sold 21.2 million T-Mobile shares for $2.40 billion in the first quarter.
- Raised $4.10 billion through prepaid forward contracts using Alibaba shares, subsequent to the fiscal yearend.
◆ Contraction in investments
SVF1 and SVF2 made new and follow-on investments (including those through share exchanges) totaling$3.14 billion in the fiscal year, a significant reduction from $44.26 billion in the previous fiscal year.
5. Reduced interest-bearing debt of SBG and its subsidiaries engaged in fund procurement, etc. by¥2,233.8 billion from the previous fiscal year-end as a result of proactive debt repayment and thephysical settlement of prepaid forward contracts- Reduced financial liabilities relating to the sale of shares through prepaid forward contracts by $40.45 billion(including $13.47 billion relating to contracts concluded during the fiscal year) due to the physical settlementof prepaid forward contracts corresponding to 296 million ADRs of Alibaba shares in the fiscal year.
- Repaid borrowings of $4.5 billion made through commitment lines in the first quarter.
- Repaid the entire ¥325.2 billion of bank loans (senior loans) in the second quarter, including early repaymentof ¥292.7 billion.
- Repaid in full $6.0 billion in a margin loan borrowed through Alibaba shares in the second quarter.
- Repaid $2.06 billion in a margin loan borrowed through T-Mobile shares in the six-month period ended
September 30, 2022.
- Repurchased a total of $2.07 billion worth of foreign currency-denominated senior notes (at face value) and$0.75 billion worth of USD-denominated Undated Hybrid Notes (at face value) in the fiscal year. The latteris classified as equity instruments in accordance with IFRSs.
6. On track with replacement of USD-denominated Undated Hybrid Notes
Subsequent to the fiscal year-end, the Company issued domestic Hybrid Notes of ¥222.0 billion in April 2023.
*4
Together with the borrowings made through the Hybrid Loan in May 2023, the Company completed thefinancing for the replacement of the USD-denominated Undated Hybrid Notes ($2.0 billion) and JPYdenominated Hybrid Notes (¥15.4 billion) with the first voluntary call dates in July 2023 and in September
2023 respectively.
7. Share repurchase of ¥1.4 trillion completed- On October 17, 2022, SBG completed the full repurchase of shares under the ¥1 trillion share repurchaseprogram authorized in November 2021.
- On November 10, 2022, SBG completed the full repurchase of shares under the ¥400 billion share
repurchase program authorized in August 2022.
- SBG retired 252,958,500 treasury shares (14.68% of the total number of shares issued prior to the retirement)
on March 30, 2023, a number equal to the total number of shares acquired under the above two programs.
8. Reorganization is planned among Z Holdings and primarily LINE and Yahoo JapanZ Holdings plans to reorganize its corporate group as of October 1, 2023, primarily among itself and its corewholly owned subsidiaries, LINE and Yahoo Japan, to build an organization structure that puts more emphasis
on products, to accelerate the expansion of synergies from the business integration.
9. Confidential submission of draft registration statement on Form F-1 by Arm
Subsequent to the fiscal year-end, Arm announced in April 2023 that it has confidentially submitted a draft
registration statement on Form F-1 to the U.S. Securities and Exchange Commission relating to the proposed
initial public offering of American depositary shares representing Arm’s ordinary shares. The Company
intends that Arm will continue to be a consolidated subsidiary following the completion of the proposed initialpublic offering. The Company does not expect that any such offering would have a material effect on its
consolidated results or financial position.
4

SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2023

Notes:
1. Gross amounts before deductions such as third-party interests and taxes.
2. Public portfolio companies are shares traded on stock exchanges or over-the-counter markets. Private portfolio companies are thosethat do not fall under the category of public portfolio companies. The same applies hereinafter.
3. The ratio of liabilities to holding assets, which is calculated as adjusted net interest-bearing debt divided by equity value of holdings.
Equity value of holdings and adjusted net interest-bearing debt each exclude amounts to be settled at maturity or borrowings that arepart of asset-backed finance. The calculation of adjusted net interest-bearing debt excludes interest-bearing debt and cash and cash
equivalents, etc., attributable to entities managed on a self-financing basis, such as SoftBank Corp. (including its subsidiaries such
as Z Holdings Corporation and PayPay Corporation), SVF1, SVF2, LatAm Funds, and Arm, as well as SB Northstar.
4. The Hybrid Loan is eligible for 50% equity treatment for the drawn down amount from Japan Credit Rating Agency, Ltd. and S&P
Global Ratings Japan Inc.

a. Consolidated Results of Operations(Millions of yen)
Fiscal year ended March 31
2022
2023

ChangeChange %6,221,534
3,265,574

6,570,439
3,328,042

348,905
62,468

5.6%
1.9%

A

104,367

4,560,500

4,456,133-

B(3,625,827)
86,718(3,434,742)(5,322,265)(73,294)(835,059)(1,696,438)(160,012)
2,599,683-

C

Selling, general and administrative
expensesFinance cost
Foreign exchange loss

(2,551,722)(382,512)(706,111)(2,695,328)(555,902)(772,270)(143,606)(173,390)(66,159)

5.6%
45.3%
-

D
E

Income (loss) on equity method
investments

341,385(96,677)(438,062)-

F

Derivative gain
(excluding gain (loss) on investments)
Change in third-party interests in SVF
Other gain (loss)
Income before income tax
Income taxes
Net income

1,234,708
970,559393,299(869,562)(592,637)(1,462,199)

54,256
1,127,949(24,138)(469,127)(320,674)(789,801)(1,180,452)
157,390(417,437)
400,435
271,963
672,398(95.6%) G
16.2%(45.9%) H-

Net income attributable to owners of
the parent(1,708,029)(970,144)

737,885-

Total comprehensive income

691,211468,140(223,071)(32.3%)

Comprehensive income attributable toowners of the parent

449,419

293,116(156,303)(34.8%)Net sales
Gross profit
Gain on investments
Gain on investments at Investment
Business of Holding Companies
Loss on investments at SoftBank
Vision Funds
Gain (loss) on other investments
Total gain on investments

The following is an overview of the primary and noteworthy components.
A Net Sales
Net sales increased in the SoftBank segment and the Arm segment.

5

SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2023

B Gain on Investments at Investment Business of Holding Companies
Investment gain of ¥4,560,500 million was recorded at Investment Business of Holding Companies. This mainlyreflected the recording of a gain of ¥4,838,251 million relating to the settlement of prepaid forward contracts using
Alibaba shares (including a gain of ¥3,996,668 million from the remeasurement of Alibaba shares held upon
Alibaba’s exclusion from the Company’s associates). For details, see “(a) Investment Business of Holding
Companies Segment” under “b. Results by Segment.”
C Loss on Investments at SoftBank Vision Funds
Investment loss of ¥5,322,265 million was recorded at SoftBank Vision Funds, of which ¥1,127,949 million was
attributable to third-party interests. SVF1 recorded a realized gain on investments (net) of ¥81,714 million, mainly
1

due to the full exits of eight portfolio companies, such as Uber Technologies, Inc. (“Uber”) and the partial exits ofseveral public portfolio companies. Meanwhile, SVF1 recorded unrealized valuation losses (net) totaling ¥782,582
million for public portfolio companies, reflecting declines in the share prices of a wide range of portfolio companies
in the fiscal year. Of the losses, ¥213,825 million were attributable to SenseTime Group, Inc., ¥213,528 million to
PT GoTo Gojek Tokopedia Tbk (“GoTo”), and ¥102,091 million to DoorDash, Inc. (“DoorDash”). For private
portfolio companies, SVF1 recorded unrealized valuation losses (net) totaling ¥1,169,384 million due to an overall
decrease in the fair value of portfolio companies, mainly reflecting markdowns of weaker-performing companies
and share price declines among market comparable companies.
SVF2 recorded realized loss on investments (net) of ¥3,499 million mainly as a result of the full exit of KE
Holdings Inc. (“KE Holdings”) and the partial exits of several public portfolio companies. Meanwhile, SVF2
recorded unrealized valuation losses (net) totaling ¥2,527,524 million. For public portfolio companies, the losses
were mainly due to share price declines of AutoStore Holdings Ltd. (“AutoStore”) and WeWork Inc. (“WeWork”)
in the fiscal year. For private portfolio companies, the fair value decreased in a wide range of investments, mainlyreflecting markdowns of weaker-performing companies and share price declines among market comparable
companies. For details, see “(b) SoftBank Vision Funds Segment” under “b. Results by Segment.”
Primarily as a result of B through C, the total loss on investments was ¥835,059 million.
D Finance Cost
Interest expenses increased by ¥121,433 million in the Investment Business of Holding Companies segment. This2

mainly reflected increases in interest expenses at SBG resulting from the full amortization of unamortized costassociated with financial liabilities related to the early physical settlement of a portion of prepaid forward contracts
using Alibaba shares and the occurrence of interest expenses related to asset-backed finance using Arm shares,
which was incepted in March 2022.
E Foreign Exchange Loss
Foreign exchange loss of ¥772,270 million (net) was recorded due to the weaker yen, mainly because the U.S.
dollar-denominated liabilities (such as borrowings from subsidiaries and foreign currency-denominated straightbonds) of SBG and fund procurement subsidiaries in Japan exceeded their U.S. dollar-denominated cash and cash
equivalents and loans receivable.
The weaker yen increased the yen-translated value of net assets of foreign subsidiaries and associates, such as
SoftBank Vision Funds, whose functional currency is not Japanese yen (primarily U.S. dollar). However, thispositive impact is not included in foreign exchange gains; instead, it is included in the increase in exchange

6SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2023

differences from the translation of foreign operations of ¥1,337,214 million, which is listed under accumulated
other comprehensive income in equity on the Consolidated Statement of Financial Position.
F Loss on Equity Method Investments
3

Loss on equity method investments related to Alibaba was ¥25,394 million, a deterioration of ¥413,305 million
year on year. Alibaba was previously an equity method associate of the Company; however, it was excluded fromthe associates in the second quarter. This change reflected the Company’s loss of significant influence over Alibaba
as its voting ownership in the company fell below 20% during the course of the physical settlement of prepaid
forward contracts using Alibaba shares.
G Derivative Gain (Excluding Gain (Loss) on Investments)
Derivative gain of ¥24,933 million was recorded in relation to prepaid forward contracts using Alibaba shares. In
the fourth quarter, derivative loss of ¥524,201 million was recorded in relation to the same contracts due to anincrease in the Alibaba share price.
Primarily as a result of A through G, loss before income tax was ¥469,127 million, an improvement of¥400,435 million year on year.
H Income Taxes
Income taxes stood at ¥320,674 million. In addition to current income taxes totaling ¥283,702 million recorded at
SoftBank Corp., Yahoo Japan Corporation, Arm, and other operating companies, current income taxes of ¥494,405
million and deferred income taxes of ¥408,508 million (a credit of income taxes) were recorded at SBG, at
subsidiaries conducting fund procurement using Alibaba shares, and at related intermediate holding companies(both comprising wholly owned subsidiaries of the Company).
Primarily as a result of A through H, net loss attributable to owners of the parent was ¥970,144 million, an
improvement of ¥737,885 million year on year.

7SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2023

8

SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2023

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

Main businesses

Core companies·Investment activities by SBG and its
subsidiaries

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

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

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

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

SoftBank Corp.
Z Holdings Corporation
Yahoo Japan Corporation
LINE Corporation*1
PayPay Corporation

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

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

Fortress Investment Group LLC
Fukuoka SoftBank HAWKS Corp.

Other

Note:
1. Since PayPay Corporation became a subsidiary of SoftBank Corp. and Z Holdings Corporation in October 2022, its operating results
are no longer included in “Other,” but are presented within the SoftBank segment starting from the third quarter, with the results
retrospectively adjusted and presented for the fiscal year and for the previous fiscal year.

9SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2023

(a) Investment Business of Holding Companies Segment
1. As a result of the physical settlement of prepaid forward contracts corresponding to 296 million ADRs
of Alibaba shares, gains and losses on sale (¥841.6 billion gain on settlement of prepaid forward
contracts using Alibaba shares and ¥210.9 billion realized investment loss) were recorded. Alibaba was
excluded from the associates of the Company as the voting ownership fell below 20% in the second
quarter during the course of the physical settlement. ¥3,996.7 billion remeasurement gain was recordedon shares that continued to be held upon exclusion.
2. Segment income was ¥3,349.8 billion. This reflected ¥4,560.6 billion investment gain, including theabove gains and losses related to Alibaba shares, which was partially offset by finance cost of ¥398.5
billion and foreign exchange loss of ¥772.1 billion.

OVERVIEWThis segment is led by SBG, which conducts investment activities, either directly or through its subsidiaries, as a
strategic investment holding company. The segment consists of SBG, SoftBank Group Capital Limited, SoftBank
Group Japan Corporation (“SBGJ”), the asset management subsidiary SB Northstar, and certain other subsidiaries
engaged in investment and financing activities. Gains and losses on investments at Investment Business of Holding
Companies comprise gains and losses on investments held by SBG either directly or through its subsidiaries but do
not include gains and losses on investments pertaining to subsidiaries’ shares, such as dividend income fromsubsidiaries or impairment losses related to the subsidiaries’ shares.
This segment has approximately 110 portfolio companies, including Alibaba, T-Mobile, and Deutsche Telekom
AG (“Deutsche Telekom”), as well as investees of SB Northstar, most of which are investments classified as
financial assets at FVTPL. Investments classified as financial assets at FVTPL are measured at fair value every
quarter, and any change in fair value is recorded in the Consolidated Statement of Profit or Loss as gains and losses
on investments.
Investment in Alibaba
Alibaba was previously an equity method associate of the Company but was excluded from the associates during
the second quarter. This reflects the Company’s loss of significant influence over Alibaba as its voting ownership in
the company fell below 20% during the course of the physical settlement of prepaid contracts using Alibaba shares.
Upon Alibaba’s exclusion from the Company’s associates, Alibaba shares held by the Company were classified
as financial assets at FVTPL and were remeasured at fair value based on the share price at that time. The shares aremeasured at fair value quarterly and any change in fair value is recorded in the Consolidated Statement of Profit or
Loss as gain and loss on investments.
Investment in listed stocks and other instruments by asset management subsidiaries
SB Northstar acquires and sells listed stocks and other instruments and engages in derivative and credit transactions
related to listed stocks, using surplus funds of SBG. Investment loss related to asset management subsidiaries for*1

the fiscal year was ¥146.2 billion, which brings the cumulative investment loss since inception to ¥892.4 billion.

SB Northstar’s business scale continues to be downsized and the balance of its shareholdings and other instruments
decreased from ¥315.9 billion as of the previous fiscal year-end to ¥79.2 billion as of the fiscal year-end.
SBG indirectly holds 67% and SBG’s Representative Director, Corporate Officer, Chairman & CEO Masayoshi
Son indirectly holds 33% of interests in SB Northstar. Masayoshi Son’s interest is deducted from the gains andlosses on investments at SB Northstar as a non-controlling interest; therefore, 67% of the gains and losses oninvestments impact net income attributable to owners of the parent. If, at the end of the fund life (12 years + 2-year
extension), SB Northstar has any unfunded repayment obligations to SBG, Masayoshi Son will pay his pro rata
10

SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2023

share of any such unfunded obligations based upon his relative ownership percentage of SB Northstar.
Note:
1. Both the fiscal year and the cumulative investment loss amounts exclude the impact of SB Northstar’s
investments in three Special Purpose Acquisition Companies (“SPACs”) controlled by SB Investment Advisers(US) Inc. Of these SPACs, one completed a merger with an operating company during the fiscal year and two
terminated operations during the fiscal year as they were unable to complete a merger with operating companies.
FINANCIAL RESULTS(Millions of yen)
Fiscal year ended March 31
2022
2023
Gain on investments at Investment Business of
Holding Companies
Gain relating to settlement of prepaid
forward contracts using Alibaba shares
Gain relating to sales of T-Mobile shares
Realized gain (loss) on investments at asset
management subsidiaries
Unrealized loss on valuation of
investments at asset management
subsidiaries
Derivative gain (loss) on investments at asset
management subsidiaries*1
Realized loss on investments
Unrealized gain (loss) on valuation of*1
investments
Change in valuation for the fiscal year
Reclassified to realized gain (loss)*2
recorded in the past fiscal years
Derivative gain on investments*1*3
Effect of foreign exchange translation*1
Other
Selling, general and administrative expenses
Finance cost
Foreign exchange loss
Income (loss) on equity method investments
Derivative gain
(excluding gain (loss) on investments)
Mainly due to prepaid forward contracts using
Alibaba shares
Other gain (loss)
Segment income (income before income tax)

Change Change %104,135

4,560,568

4,456,433-

A

199,972
3,149

4,838,251
24,842

4,638,279
21,693688.9%

54,853(73,950)(128,803)-(393,635)(67,054)

326,581-

89,476(269,343)(5,102)(235,617)(94,578)
33,726-

288,734(126,282)(144,198)(132,423)(432,932)(6,141)-

415,016
101,524
10,022
19,383(85,871)(277,108)(705,108)
376,433(11,775)
205,506
17,890(73,796)(398,541)(772,053)(22,836)(426,791)
103,982(10,022)(1,493)
12,075(121,433)(66,945)(399,269)

102.4%(7.7%)(14.1%)
43.8% B
- C
- D

1,236,686
315,991

65,732(9,228)(1,170,954)(325,219)(94.7%) E- F

965,158

3,349,846

2,384,688

247.1%

Notes:
1. Figures for the previous fiscal year are restated. There is no change in the total amount of gain (loss) on investments at Investment
Business of Holding Companies.
2. Unrealized gains and losses on valuation of investments recorded in previous fiscal years related to the investments realized in thefiscal year are reclassified as “realized gain (loss) on investments.”
3. Unrealized gains and losses on valuation of investments are translated using the average exchange rate for the quarter in which thegains and losses were incurred, while realized gains and losses on investments are translated using the average exchange rate for thequarter in which the shares were disposed of. “Effects of foreign exchange translation” are amounts arising from the different
foreign currency exchange rates used for these unrealized gains and losses on valuation and realized gains and losses.

11SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2023

Gains and losses related to Alibaba shares in the fiscal year

(Millions of yen)

Gains and losses while an associate of the Company
Loss on equity method investments
Dilution gain from changes in equity interest (net)Gain on settlement of prepaid forward contracts using Alibaba shares(gain on sale from physical settlement)
Gains and losses upon exclusion from associates of the Company
Gain from remeasurement of Alibaba shares held upon exclusion from associates
Gains and losses after exclusion from associates of the Company
Realized loss on investments (loss on sale from physical settlement)
representing the difference between fair value at exclusion from associates and at settlement
Unrealized loss on valuation of investments
representing a change in the fair value of Alibaba shares that continued to be held at the
fiscal year-end after exclusion from associates
Gains and losses associated with financing activities
Finance cost
Derivative gain (excluding gain (loss) on investments)
Total (contribution to segment income)(25,394)
75,678
841,583
3,996,668(210,919)(254,356)(107,884)
24,9334,340,309

A Gain on investments at Investment Business of Holding Companies: ¥4,560,568 million· Gain relating to settlement of prepaid forward contracts using Alibaba shares of ¥4,838,251 million was recorded
due to the physical settlement of a portion of the contracts. The amount includes a gain of ¥3,996,668 million fromremeasurement of Alibaba shares.
· Gain of ¥24,842 million relating to sales of T-Mobile shares was recorded. This was due to the sale of 21.2 million
T-Mobile shares held by the Company to Deutsche Telekom as Deutsche Telekom exercised a portion of its call
options in April 2022.
· Realized loss of ¥73,950 million and unrealized valuation loss of ¥67,054 million were recorded on investments at
asset management subsidiaries. This was a result of investments in listed stocks and other instruments by SB
Northstar.
· Realized loss of ¥235,617 million on investments was recorded. This mainly comprised ¥210,919 million loss
realized on Alibaba shares due to the physical settlement of the prepaid forward contracts using such shares,
which was carried out after Alibaba’s exclusion from the Company’s associates.
· Unrealized loss of ¥144,198 million was recorded on valuation of investments. This mainly included a ¥254,356
million unrealized loss on a change in the fair value of Alibaba shares held at the fiscal year-end, which wasrecorded on the change in fair value from the exclusion from the Company’s associates to the fiscal year-end.
· Derivative gain of ¥205,506 million on investments was recorded, mainly due to a gain of ¥189,874 million
recorded pertaining to the right to acquire T-Mobile shares for no additional consideration if certain conditions aremet.
B Finance cost: ¥398,541 million (increase of ¥121,433 million year on year)
2

Interest expenses increased by ¥129,565 million year on year at SBG to ¥396,240 million. This was mainly due tothe full amortization of unamortized costs associated with financial liabilities related to the early physical settlementof a portion of the prepaid forward contracts using Alibaba shares and the occurrence of interest expenses related toasset-backed finance using Arm shares, which was incepted in March 2022.
C Foreign exchange loss: ¥772,053 million
12SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2023

Foreign exchange loss of ¥772,053 million (net) was recorded due to the weaker yen, mainly because the U.S.
dollar-denominated liabilities (such as borrowings from subsidiaries and foreign currency-denominated straightbonds) of SBG and fund procurement subsidiaries in Japan exceeded their U.S. dollar-denominated cash and cash
equivalents and loans receivable.
D Loss on equity method investments: ¥22,836 million (deterioration of ¥399,269 million year on year)
3

Loss on equity method investments related to Alibaba was ¥25,394 million, a deterioration of ¥413,305 million
year on year. Alibaba was previously an equity method associate of the Company but was excluded from theassociates in the second quarter. This reflects the Company’s loss of significant influence over Alibaba as its voting
ownership in the company fell below 20% during the course of the physical settlement of prepaid forward contracts
using Alibaba shares.
E Derivative gain (excluding gain (loss) on investments): ¥65,732 million
Derivative gain of ¥24,933 million was recorded mainly for the prepaid forward contracts using Alibaba shares. In
the fourth quarter, a derivative loss of ¥524,201 million was recorded in relation to the same contracts due to anincrease in the Alibaba share price.
F Other loss: ¥9,228 million
As stated in “Status of Investment and Financial Support for WeWork,” the Company recorded a ¥217,081 million
loss related to financial support provided to WeWork. On the other hand, interest income increased by ¥65,962
million year on year to ¥103,462 million mainly due to an increase in interest rates on USD-denominated deposits.
Meanwhile, a dilution gain of ¥75,678 million (net) from changes in equity interest was recorded due to a change in
the Company’s ownership interest in Alibaba prior to its exclusion from associates.
Reference: Impact of the asset management subsidiaries on the Company’s Consolidated Statement of
Financial Position(Millions of yen)March 31, 2023
Cash and cash equivalents
18,231
Investments from asset management subsidiaries
79,236
Derivative financial assets in asset management subsidiaries
24
Other
501
Total assets
97,992
Trade and other payables
229
Total liabilities229*1
912,989
Investments from the Delaware subsidiaries
Equivalent amount of cash investments by SBG in the Delaware subsidiaries
39,786Equivalent amount of loans to the Delaware subsidiaries held by SBG
853,310(the amount entrusted by SBG related to asset management)
Equivalent amount of cash investments by Masayoshi Son in the Delaware
A
19,893subsidiaries
Retained earnings(898,420) B
Exchange differences on translating foreign operations
83,194Equity97,763 C

Note:
1. Investments from the Company’s subsidiaries, Delaware Project 1 L.L.C., Delaware Project 2 L.L.C., and Delaware Project 3 L.L.C.
(the “Delaware subsidiaries”), to the asset management subsidiary, SB Northstar

13

SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2023

(Calculation of non-controlling interests)
Equivalent amount of cash investments by Masayoshi Son in the Delaware subsidiaries*2
Cumulative loss attributable to non-controlling interests
Exchange differences on translating foreign operations
Non-controlling interests (interests of Masayoshi Son)

(Millions of yen)
19,893 A(299,377)
32,541(246,943) D

Note:
2. One-third of B in the above table(Interests in equity (C above))(Millions of yen)344,706(246,943) DInterests of SBG
Non-controlling interests (interests of Masayoshi Son)
Equity97,763C

Main interest-bearing debt and lease liabilities in this segment
Balance as of March 31, 2023
in Consolidated Statement of
Financial Position

Borrower
SBG

Type
Borrowings
Corporate bonds
Lease liabilities
Commercial paper

Wholly owned subsidiaries*1
conducting fund procurement

Borrowings using Arm shares(asset-backed finance)¥1,126.6 billion

Prepaid forward contracts using Alibaba
shares (floor contracts, collar contracts,and forward contracts)¥3,823.7 billion

Borrowings using SoftBank Corp. shares(margin loan)¥497.4 billion

Prepaid forward contracts using
T-Mobile shares (collar contracts)¥376.2 billion

Collar transactions using Deutsche
Telekom shares¥441.3 billion

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

14¥381.9 billion¥5,753.0 billion¥10.7 billion¥161.0 billion

SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2023

(b) SoftBank Vision Funds Segment*1
1. Gross performance since inception was $11.4 billion gain in SVF1 and $18.3 billion loss in SVF2.
Market environment: The S&P 500 Index rose 7.0%, the NASDAQ-100 Technology Sector Index rose
23.9%, and the Thomson Reuters Venture Capital Index rose 11.6% from December 31, 2022 to March
31, 2023.
SVF1: $101.0 billion in cumulative returns (exit price, etc. + fair value of investments held) on$89.6 billion investments, with $11.4 billion gross gain
· Investment loss was $17.3 billion (¥2,311.2 billion) for the fiscal year.
· The fair value of investments held at the fourth quarter-end increased by 0.4% from the previous*2
quarter-end.
*3- Up 8.0% for public portfolio companies, mainly due to rise in share prices of DiDi, Coupang, andDoorDash, partially offset by declines in share prices of Grab and other companies*3- Down 3.6% for private portfolio companies, mainly reflecting markdowns of weaker-performing
companies and share price declines among market comparable companies, consistent with private valuation
methodologies adopted
SVF2: $31.9 billion in cumulative returns on $50.2 billion investments, with $18.3 billion gross loss
· Investment loss was $18.4 billion (¥2,445.4 billion) for the fiscal year.
· The fair value of investments held at the fourth quarter-end decreased by 5.4% from the previous quarter-end.
- Up 10.0% for public portfolio companies, mainly due to rise in share prices of AutoStore and Symbotic,
partially offset by decline in share prices of WeWork and other companies- Down 7.7% for private portfolio companies, reflecting markdowns of a wide range of portfolio companies
due to their weaker performances, consistent with private valuation methodologies adopted(As of March 31, 2023; in billions of U.S. dollars)

Since Inception

SVF1

Investment
*5
cost

*5

Returns

The Fiscal Year
Gain/
loss

Exited investments
24.0
42.7
18.7
Investments before exit
65.6
55.9
(9.7)
Reversal of valuation gain/loss recorded in prior periods for exitedinvestments in the fiscal year
Derivatives/Interests/Dividends
0.0
2.4
2.4

Total

89.6

101.0

11.4

Gain/loss
Jan - Mar

*4

Gain/loss
YTD

0.3
0.2

0.6
(14.7)

(0.1)
(0.0)
0.4

(3.2)
0.0
(17.3)¥54.2 billion¥(2,311.2) billion

(0.0)
(1.5)

(0.0)
(18.6)

0.0
(0.0)
(1.5)

0.1
0.1
(18.4)

SVF2
Exited investments
1.6
2.7
1.1
Investments before exit
48.6
29.5
(19.1)
Reversal of valuation gain/loss recorded in prior periods for exitedinvestments in the fiscal year
Derivatives/Interests/Dividends
(0.3)
(0.3)

Total

50.2

31.9

(18.3)¥(205.4) billion ¥(2,445.4) billion

2. Continued prudent defensive financial management – significantly curtailed investments and continued
to monetize investments under a disciplined approach amid the challenging market environment· Sold investments for a total of $6.47 billion by SVF1 and SVF2 in the fiscal year (SVF1: $5.79 billion,
1
SVF2: $0.68 billion), including full exits of ten portfolio companies such as Uber and KE Holdings, andpartial exits of several public portfolio companies.
· Made new and follow-on investments by SVF1 and SVF2 totaling $3.14 billion (SVF1: $0.45 billion, SVF2:
1$2.69 billion), a significant reduction from $44.26 billion in the previous fiscal year.

15

SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2023

Notes:
1. Cumulative gross gains and proceeds from realized investments are before deducting third-party interests, taxes, and expenses. The
same applies to the presentation of cumulative investment performance hereinafter.
2. Represents changes in U.S. dollar-based fair values, excluding those from investments or exits made during the fourth quarter. The
classification of portfolio companies as public/private is based on their status as of the fiscal year-end. For portfolio companies witha change in the classification of public/private during the fourth quarter, comparisons are made by adjusting their status at the third
quarter-end to that of the fourth quarter-end. The same applies to the change in fair value of investments held at the quarter-end in
this section.
3. Public portfolio companies are shares traded on stock exchanges or over-the-counter markets. Private portfolio companies are thosethat do not fall under the category of public portfolio companies. The same applies hereinafter.
4. The amount of gains and losses for exited investments in the fiscal year represents the exit price, net of the investment cost of suchinvestments. Unrealized valuation gains and losses of such investments recorded in prior years, or in or before the third quarter ofthe fiscal year, are presented as a reversal of valuation gain/loss recorded in prior periods for exited investments in the fiscal year.
Therefore, the total amount of gains and losses for each quarter disclosed in or before the third quarter of the fiscal year and thegains and losses for the fourth quarter for “investments before exits” may not match the amount of gains and losses for the fiscal
year (YTD).
5. For derivatives, the investment cost represents the cost of the derivatives. Investment returns represent the exit price for exitedinvestments, the fair value for investments before exits, the settlement amount of settled contracts or the fair value of open contracts
for derivatives, and the respective amounts received for interest or dividends.

OVERVIEW
Segment results mainly include the results of the investment and operational activities of SoftBank Vision Fund 1(SVF1), SoftBank Vision Fund 2 (SVF2), and SoftBank Latin America Funds (LatAm Funds).

Outline of principal funds in the segment
As of March 31, 2023
SVF1 and SVF2
SVF1 and SVF2 aim to maximize returns from a medium- to long-term perspective through large-scale investments
4

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

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

Investment period
Fund life

SVF1
SoftBank Vision Fund L.P.
98.6
*1

The Company: 33.1
Third-party investors: 65.5
SBIA
(The Company’s wholly owned
U.K. subsidiary)Ended on September 12, 2019
Until November 20, 2029 + Up to two
1-year extensions option by SBIASVF2SoftBank Vision Fund II-2 L.P.
*2

56.0
*2
The Company: 53.4
*3
Third-party investor (MgmtCo): 2.6
SBGA(The Company’s wholly owned
U.K. subsidiary)
To be determined by the manager
Until October 4, 2032 + Up to two 1year extensions option by SBGA

Notes:
1. The Company’s committed capital to SVF1 includes approximately $8.2 billion of an obligation that is satisfied by using Arm shares(all said shares have been contributed) and $2.5 billion to be used for an incentive scheme related to SVF1.
2. As of May 11, 2023, the Company’s committed capital to SVF2 has been increased to $57.4 billion, and the total committed capitalfor SVF2 is $60.0 billion.
3. A co-investment program has been introduced for SVF2 for the Company’s management. MASA USA LLC (“MgmtCo”), an
investment entity for the co-investment program, participates in this fund. The interest attributable to MgmtCo is treated as a thirdparty interest in the Company’s consolidated financial statements. For details, see “16. Related party transactions regarding a co-

16

SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2023

investment program with restricted rights to receive distributions” under “(6) Notes to Consolidated Financial Statements” in “4.
Consolidated Financial Statements and Primary Notes.”

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

SBLA Latin America Fund LLC
7.6

*1

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

Note:
1. A co-investment program has been introduced for LatAm Funds for the Company’s management. MgmtCo participates in this fund.
The interest attributable to MgmtCo is treated as a third-party interest in the Company’s consolidated financial statements. For
details, see “16. Related party transactions regarding a co-investment program with restricted rights to receive distributions” under“(6) Notes to Consolidated Financial Statements” in “4. Consolidated Financial Statements and Primary Notes.”

Financing at SVF
SVF1, SVF2, and LatAm Funds may independently make borrowings that are non-recourse to SBG for the purposeof leveraging and maintaining liquidity. Types of borrowings include asset-backed finance, which utilizes assets
held to enhance returns and distribute to limited partners.

Fair value measurement of investments
SVF1, SVF2, and LatAm Funds calculate the fair value of their investments at each quarter-end in accordance withIFRS 13 Fair Value Measurement and based on the SBIA Global Valuation Policy and the International Private
Equity and Venture Capital Valuation Guidelines (IPEV Guidelines). For public portfolio companies, fair values of
portfolio companies that are traded on stock exchanges are determined using quoted prices, while fair values of
those traded on over-the-counter markets are determined using single or multiple factors, such as quoted prices andother observable inputs. For private portfolio companies, one or more valuation methods are used, including themarket approach using figures of market comparable companies, the income approach using estimated future cash
flows, and the recent transactions method using prices of recent funding rounds and similar transactions.

17SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2023

FINANCIAL RESULTS(Millions of yen)
Fiscal year ended March 31
2022
2023
Loss on investments at SoftBank*1
Vision Funds
Loss on investments at SVF1, SVF2,
and LatAm Funds*2

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

Segment income (income before income tax)

ChangeChange %(3,434,469)(5,279,494) (1,845,025)-(3,436,420)
1,345,560(5,298,458) (1,862,038)
78,616 (1,266,944)(94.2%)(4,698,612)(2,928,740)(5,267,270)(568,658)(4,978,591) (2,049,851)-

A(1,769,872)(288,679)

1,481,193-

51,897(50,303)(84,962)
1,951(94,456)(33,278)

1,512
14,537(125,853)
18,964(65,999)(81,181)(50,385)
64,840(40,891)
17,01328,457(47,903)(97.1%)
872.0%(30.1%)
143.9%

2,056
970,559
36,561907
1,127,949(10,473)(1,149)157,390(47,034)(55.9%)
16.2% B-

(2,553,027)(4,308,291) (1,755,264)-

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

Investments and disposals by SVF1 and SVF2
(Billions of U.S. dollars)

SVF1
SVF2

5

Investments made during the fiscal year
Q1
Q2
Q3
Q4
YTD
0.06
0.20
0.16
0.03
0.45
2.11
0.13
0.09
0.36
2.69

Disposals made during the fiscal year
Q1
Q2
Q3
Q4
YTD
2.10
0.93
1.63
1.13
5.79
0.51
0.06
0.03
0.08
0.68

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

18

SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2023

Segment income
A Loss on investments at SoftBank Vision Funds: ¥5,279,494 million(Millions of yen)
Fiscal year ended March 31
2022
2023

ChangeChange %(3,028,428)(518,943)(2,311,213)(2,445,427)

717,215(1,926,484)-

110,951(541,818)(652,769)-(3,436,420)(5,298,458)(1,862,038)-

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

Loss on investments at SVF1, SVF2,
and LatAm Funds

B Change in third-party interests in SVF: ¥1,127,949 million
This indicates the sum of distributions to third-party investors in proportion to their interests in fixed distributions
and performance-based distributions, which are based on the gains and losses on investments at each fund, net of (i)management and performance fees payable to SBIA from SVF1; (ii) management and performance-linked
management fees payable to SBGA from SVF2; (iii) management fees, performance-linked management fees, andperformance fees payable to SBGA from LatAm Funds; and (iv) operating and other expenses of SVF. For details,
see “(2) Third-party interests in SVF” under “4. SoftBank Vision Funds business” in “(6) Notes to Consolidated
Financial Statements” in “4. Consolidated Financial Statements and Primary Notes.”

19

SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2023

Investment performance
As of March 31, 2023
SVF1
(Billions of U.S. dollars)

Total ((1) + (2) + (3) + (4) below)
Cumulative
number ofinvestments
100

Cumulative
investment
cost
89.6

Cumulative
investment
return101.0

Cumulative
*1
gain
11.4

Investment loss
recorded for the fiscal year
Jan - Mar
YTD
0.4
(17.3)(Reference)
Cumulative Cumulative Cumulative
number ofinvestment
investment
investments
cost
returnEffects of share exchanges
(4)
(2.0)
(2.0)
Uber Advanced Technologies Group and Aurora Innovation Inc.
PT Tokopedia and GoTo
Grofers International Pte. Ltd. and Zomato Limited
Zymergen, Inc. and Ginkgo Bioworks Holdings, Inc.
Candy Digital, Inc. and Fanatics Holdings, Inc. (an existing portfolio company)
Effects of dividends in kind(2)
Treasure Data, Inc.
Acetone Limited (equity interests in Arm China JV)
Net of effects of share exchanges
*2, 3
94
87.6
99.0
and dividends in kind

Cumulative
*1
gain
-

-

11.4

(1) Exited investments

Partial exit
*4
Full exit
Total

Number ofinvestments
24
24

Cumulative*1
realized gain
8.9
9.8
18.7

Realized gain (loss)
recorded for the fiscal year
Jan - Mar
YTD
1.7
(1.1)
0.3
0.6

Investment
cost
30.7
34.9
65.6

Cumulative
unrealized
valuation gain
*7
Fair value(loss)
20.6(10.1)
35.3
0.4
55.9
(9.7)

Unrealized
valuation gain (loss)
recorded for the fiscal year
Jan - Mar
YTD
1.5
(6.0)
(1.3)
(8.7)
0.2
(14.7)

Derivative
cost
0.0
0.0

Fair value /Cumulative
settlement
price derivative gain
0.0
0.0
1.5
1.5
1.5
1.5

Derivative gain (loss)
recorded for the fiscal year
Jan - Mar
YTD
0.0
(0.0)
0.0

Investment
cost
3.7
20.3
24.0

Exit price
12.6
30.1
42.7

(2) Investments before exit (investments held at the fiscal year-end)*6

PublicPrivate
Total

Number ofinvestments
23
53
76

*5

(3) Derivatives

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

Cumulative
income0.9Interest and dividend income
recorded for the fiscal year
Jan - Mar
YTD
-

Total
Notes:* The total and the sum of the breakdown in the table may not match as the amount of each item is rounded to the nearest unit.
1. Before deducting third-party interests, taxes, and expenses

20

SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2023

2. For investments in which share exchanges occurred, the acquisition costs of new investments and disposal prices (sale prices) ofinvestments initially held are deducted for the purpose of presenting the cumulative net investment performance. Similarly,
investments acquired through dividends in kind from existing portfolio companies are deducted from the investment count.
3. In addition to the public share exchanges above, SVF1 exchanged all shares in two portfolio companies for shares in their affiliatedcompanies, which are also existing portfolio companies. The acquisition costs and disposal prices (sale prices) of these investments
are also deducted in this section.
4. Includes disposal (sale) through share exchanges
5. The classification of portfolio companies as public/private is based on their status as of the fiscal year-end.
6. Includes DiDi Global Inc., which is traded in the over-the-counter market
7. For a certain investment that was initially determined to be transferred from the Company to SVF1 but later canceled, any unrealized
valuation gains and losses incurred for the period leading up to the decision to cancel the transfer are not included in thepresentation.

SVF2(Billions of U.S. dollars)

Total ((1) + (2) + (3) + (4) below)
Cumulative
number ofinvestments
274

Cumulative
investment
cost
50.2

Cumulative
investment
return31.9

Cumulative*1
loss(18.3)

Investment loss
recorded for the fiscal year
Jan - Mar
YTD
(1.5)
(18.4)

Cumulative
number ofinvestments

Cumulative
investment
cost

Cumulative
investment
returnCumulative
*1
loss

(1)

－

－

－

273

50.2

31.9

(18.3)

Number ofinvestments
3
3

Investment
cost
0.2
1.4
1.6

Exit price
0.1
2.6
2.7

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

Realized gain (loss)
recorded for the fiscal year
Jan - Mar
YTD
(0.0)
0.0
(0.0)
(0.0)

Investment
*5
cost
8.1
40.5
48.6

Fair value
4.3
25.2
29.5

Cumulative
unrealized
valuation loss
(3.8)
(15.3)(19.1)

Unrealized
valuation gain (loss)
recorded for the fiscal year
Jan - Mar
YTD
0.4
(4.5)
(1.9)
(14.1)(1.5)(18.6)

Derivative
cost-

Fair value /Cumulative
settlement
price derivative loss
(0.2)
(0.2)
(0.1)
(0.1)
(0.3)
(0.3)

Derivative gain (loss)
recorded for the fiscal year
Jan - Mar
YTD
0.2
(0.1)
(0.0)
0.1

(Reference)

Effects of purchase of WeWork
senior secured notes
Net of effects of purchase of*2
WeWork senior secured notes(1) Exited investments

Partial exit
Full exit
Total(2) Investments before exit (investments held at the fiscal year-end)*4

PublicPrivate
Total

Number ofinvestments
14
257
271

*3

*5

(3) Derivatives

Unsettled
SettledTotal(4) Interest and dividend income from investments
Interest anddividend
income
0.0

Total

21

Cumulative
income0.0Interest and dividend income
recorded for the fiscal year
Jan - Mar
YTD
0.0

SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2023

Notes:* The total and the sum of the breakdown in the table may not match as the amount of each item is rounded to the nearest unit.
1. Before deducting third-party interests, taxes, and expenses
2. WeWork senior secured notes purchased by SVF2 in accordance with an agreement between the Company and WeWork in October
2019 are deducted from the investment count.
3. The classification of portfolio companies as public/private is based on their status as of the fiscal year-end.
4. Includes Zhangmen Education Inc., which is traded in the over-the-counter market
5. The investment cost and fair value of investments before exit in SVF2 include those related to a minor SVF2 ownership percentage
in another portfolio company received as part of the consideration for SVF2’s investment in a portfolio company.

Capital deployment
As of March 31, 2023
SVF1
(Billions of U.S. dollars)

Total

The Company

Third-party investors

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

98.6
87.2
33.3
53.9

33.1
29.9
9.2
20.7

65.5
57.3
24.1
33.2

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

11.4

3.2

8.2

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

SVF2(Billions of U.S. dollars)

Total
*1

56.0
50.9
5.1

Committed capital (A)Drawn capital (B)Remaining committed capital (C) = (A) – (B)Note: Remaining committed capital includes recallable return of capital.

(Reference: Breakdown of committed capital as of March 31, 2023)*1

Total committed capital
The Company’s equity commitment to investments outside the scope of the co-investment program*2

The Company’s preferred equity commitment to SVF2 LLC
The Company’s equity commitment to SVF2 LLC
MgmtCo’s equity commitment to SVF2 LLC

56.0
8.9
32.1
12.4
2.6

Notes:*As of the fiscal year-end, no capital has been paid by MgmtCo.
1. As of May 11, 2023, the Company’s committed capital to SVF2 has been increased to $57.4 billion, and the total committed capitalfor SVF2 is $60.0 billion.
2. SVF2 LLC (SVF II Investment Holdings LLC) is a subsidiary of the Company established under SVF2 and indirectly holds
investments subject to the co-investment program.

As of the fiscal year-end, total committed capital for SoftBank Latin America Funds is $7.6 billion, with drawn
capital totaling $7.3 billion.
For a complete list of portfolio companies and historical quarterly results of SVF1, SVF2, and LatAm Funds, see the Data Sheets
under “Earnings Results Briefing” on the Company’s website at https://group.softbank/en/ir/presentations/.

22SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2023

(c) SoftBank Segment
1. Segment income decreased by 30.2% yoy mainly due to a decrease in income in the consumer business,
which was affected by a fall in mobile service charges.
2. Z Holdings plans to reorganize the corporate group primarily among itself and its core wholly owned
subsidiaries, LINE and Yahoo Japan, in order to build an organizational structure that puts moreemphasis on products and to accelerate the expansion of synergies from the business integration.
(Millions of yen)
Fiscal year ended March 31
2022
2023
Net sales
Segment income (income before income tax)
Depreciation and amortization
Gain (loss) on investments
Finance cost
Loss on equity method investments

ChangeChange %5,733,116
849,735(743,230)
41,946(62,445)(38,894)

5,956,537
592,782(768,712)(25,381)(64,020)(46,783)

223,421(256,953)(25,482)(67,327)(1,575)(7,889)3.9%(30.2%)
3.4%
2.5%
-

750
2,424

692
(42,753)(58)(45,177)(7.7%)-

Derivative gain
(excluding gain (loss) on investments)
Other gain (loss)

Note:
1. Since PayPay Corporation became a subsidiary of SoftBank Corp. and Z Holdings Corporation in October 2022, its operating results
are no longer included in “Other,” but are presented within the SoftBank segment from the third quarter, with the results
retrospectively adjusted and presented for the fiscal year and for the previous fiscal year.

OVERVIEW
Segment results include the results of business activities of SoftBank Corp. mainly in Japan, such as provision ofmobile services and sale of mobile devices, as well as provision of broadband and e-commerce services. Under its
Beyond Carrier strategy, SoftBank Corp. aims to achieve sustainable growth in its core telecommunications
business, while expanding its business in domains outside of telecommunications through internet services such asYahoo! JAPAN and LINE and the development of businesses that utilize advanced technologies including AI, IoT,
and FinTech, such as the cashless payment service PayPay.
FINANCIAL RESULTS
Segment income was ¥592,782 million, a decrease of ¥256,953 million (30.2%) year on year. This was mainly due
to a decrease in income in the consumer business and a deterioration in investment loss.
Income in the consumer business decreased mainly due to a fall in mobile service charges. In the enterprisebusiness, income increased, mainly due to higher sales of cloud services and other products as the digitalization ofenterprises accelerates. Income in the Yahoo! JAPAN/LINE business was level year on year despite an increase incommerce sales, mainly as a result of increases in cost of sales and personnel expenses associated with an increasein the number of employees. The deterioration in loss on investments was due to a decrease in the fair value of
portfolio companies, primarily those that were invested for the purpose of strengthening solution services.
Impairment loss on equity method investments of ¥31,304 million was recorded in the third quarter in relation to
DEMAE-CAN CO., LTD., which operates a food delivery service under LINE Corporation. The loss had a negative
impact of ¥2,965 million on net income attributable to owners of the parent at the Company.

23

SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2023

GROUP REORGANIZATION PRIMARILY AMONG Z HOLDINGS AND ITS CORE WHOLLY OWNEDSUBSIDIARIES, LINE AND YAHOO JAPANIn February 2023, Z Holdings resolved on a policy for reorganization, including a merger primarily among thecompany and its core wholly owned subsidiaries, LINE Corporation and Yahoo Japan Corporation (the"Reorganization"), in order to build an organizational structure that puts more emphasis on products, to accelerate
the expansion of synergies from the business integration and to obtain funds for investment that will support asustainable profit growth from the fiscal year ending March 2024 onward and the creation of the future.
Furthermore, in April 2023, Z Holdings resolved to change its trade name to "LY Corporation" as of the completion
date of the Reorganization, which is expected to be October 1, 2023. The change is subject to approval of a partial
amendment to its Articles of Incorporation at its annual general meeting of shareholders to be held in June 2023.
NO IMPACT FROM THE CONVERSION OF PAYPAY INTO A SUBSIDIARY OF SOFTBANKIn conjunction with the conversion of PayPay Corporation to a subsidiary, SoftBank Corp. changed the accounting
policy for business combinations under common control involving non-controlling interests from the book-value
method (pooling of interests method) to the acquisition method, starting from the third quarter. As a result,
SoftBank Corp. recorded a gain from remeasurement relating to the business combination of ¥294,843 million andamortization expenses for identifiable intangible assets pertaining to PayPay Corporation for the fiscal year
associated with the conversion of PayPay Corporation into a subsidiary. Furthermore, as a result of this change inaccounting policy, the acquisition method was retrospectively applied to transactions executed in prior years undercommon control involving non-controlling interests such as the consolidation of Yahoo Japan Corporation(currently Z Holdings Corporation) in June 2019. With this retroactive application, assets, liabilities, and equity of
SoftBank Corp. increased in its consolidated statement of financial position as of March 31, 2022. The company
also recorded amortization expenses by recognizing identifiable intangible assets pertaining to Z Holdings
Corporation in conjunction with this change in accounting policy, in its consolidated statement of income for the
fiscal year and the previous fiscal year.
Nevertheless, there is no impact from these on SBG’s consolidated financial statements as PayPay Corporation
and Z Holdings Corporation have consistently been classified as subsidiaries of SBG.
For more information on SoftBank Corp.’s financial results and business operations, please refer to its website athttps://www.softbank.jp/en/corp/ir/.

24

SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2023

(d) Arm Segment
1. Arm’s business remains robust, with record net sales (U.S. dollar-based) for the fiscal year.
◆ Net sales increased by 5.7% yoy (U.S. dollar-based) to record high due to continuing strong royalty
revenue growth, offset by a decline in non-royalty revenue due to very strong license revenue in theprevious fiscal year. In yen terms, net sales increased by 27.2% due to the weaker yen exchange rateused for translation in the preparation of the Company’s consolidated financial statements.
- Technology royalty revenue increased by 16.1% yoy (U.S. dollar-based) due to market share gains ininfrastructure, and more chips being deployed into IoT devices and automotive applications.
- Technology non-royalty revenue decreased by 8.5% yoy (U.S. dollar-based) as revenues recognized for theprevious fiscal year included some high-value deals, which were signed with large customers in prior years,
resulting in record revenues. For the fiscal year, continued strong demand for Arm technology resulted in thesecond highest annual revenue. On a quarterly basis, non-royalty revenue for the fourth quarter increased by
18.1% yoy.
◆ Segment income on a U.S. dollar basis stayed flat yoy mainly due to expenses related to stockcompensation schemes and professional fees related to preparations for the proposed initial public
offering. In yen terms, segment income increased by 18.1% yoy due to the weaker yen exchange rateused for translations in the preparation of the Company’s consolidated financial statements.
2. Confidential submission of draft registration statement on Form F-1 by Arm
Subsequent to the fiscal year-end, Arm announced in April 2023 that it has confidentially submitted a draft
registration statement on Form F-1 to the U.S. Securities and Exchange Commission relating to the proposed
initial public offering of American depositary shares representing Arm’s ordinary shares. The Company
intends that Arm will continue to be a consolidated subsidiary following the completion of the proposed
initial public offering. The Company does not expect that any such offering would have a material effect on
its consolidated results or financial position.
(Millions of yen)
Fiscal year ended March 31
2022
2023
Net sales

300,013
41,200*1

Segment income (income before income tax)

381,746
48,663

ChangeChange %81,733
7,463

27.2%
18.1%

Note:
1. Segment income included amortization expenses of ¥61,467 million for the fiscal year and ¥51,153 million for the previous fiscal
year. These expenses are related to intangible assets recognized in the purchase price allocation at the time of the acquisition of Arm.

OVERVIEW
Arm’s operations primarily consist of licensing semiconductor intellectual property (IP), including the design ofenergy-efficient microprocessors and associated technologies. Following its acquisition by the Company in 2016,
Arm accelerated investment in R&D by hiring more engineers. With the expansion of its engineering capability,
Arm has developed new technologies that have helped it maintain or increase its share of the existing markets andexpand into new markets. As Arm prepares for a potential public offering, it is continuing to grow investment in
R&D to develop solutions to meet customers’ future technology needs whilst focusing on the efficiency of its nonengineering functions.
Industry trends and their impact
Semiconductor industry trends can have a significant impact on Arm’s financial results, both positively andnegatively. Industry growth benefits Arm’s technology royalty revenue, which can grow along with industry sales.
Industry growth can also encourage Arm’s customers to increase design activity, creating new opportunities for25SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2023

Arm to license its latest technologies and thus driving non-royalty revenue (technology licensing revenue andsoftware and services revenue).
After two years of strong growth, the semiconductor industry declined during the fiscal year, compared to theprevious fiscal year, due to a decline in the sales of smartphones and other consumer electronics devices, partially
offset by continuous growth in the sales of chips into the automotive market. Industry analysts indicate thatinventory levels remain high across the value chain, which may result in industry revenues remaining weak for ashort period until inventory levels are lower. Longer term trends remain, such as more products and services
requiring increasing amounts of embedded intelligence, and so the semiconductor industry is expected to return to
growth.
The industry is vulnerable to other external factors, including trade disputes and their associated sanctions
against specific companies, supply-chain disruption, as well as the impact of temporary component shortages. If
shipments of electronic devices weaken, it may lead to lower technology royalty revenue, and if Arm’s customers
facing reduced revenues choose to delay licensing decisions, it may lead to lower technology non-royalty revenue.
However, it is difficult to anticipate when these events may occur and the impact on the semiconductor industry ingeneral or Arm specifically.
Arm is expecting that, as consumer and enterprise electronics become more advanced, its technology will befurther utilized and opportunities will expand over the long term.

FINANCIAL RESULTS
Net sales in U.S. dollars
Net sales in this section are presented in U.S. dollars as Arm’s revenue is primarily based on U.S. dollars.
(Millions of U.S. dollars)
Fiscal year ended March 31
2022
2023

Change Change %Technology royalty
Technology non-royalty

1,536
1,129

1,783
1,034

247
(95)

16.1%
(8.5%)

Total net sales

2,665

2,817

152

5.7%

Net sales increased by $152 million (5.7%) year on year due to strong growth in technology royalty revenue,
partially offset by a decrease in technology non-royalty revenue.
Technology royalty revenue
Technology royalty revenue increased by $247 million (16.1%) year on year. Royalty revenues were driven by the
deployment of Arm-based networking equipment into 5G base stations, strong shipments of Arm-based 5G highend smartphones, including some based on Arm’s latest Armv9 architecture, which will typically command a higher
royalty fee, and Arm’s customers gaining share in multiple markets, such as automotive, IoT, and servers. In
addition, Arm’s customers have benefitted from the high demand for computer chips, which enabled prices toincrease. As Arm’s royalty revenue is often based on the price of the chips, Arm also benefitted from higher chip
prices.
Technology non-royalty revenue
Technology non-royalty revenue decreased by $95 million (8.5%) year on year. This decrease is primarily due tohigh technology non-royalty revenue in the previous fiscal year, which was due in part to the timing of revenue
26

SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2023

related to contracts signed with some large customers who were making major investments in Arm’s expanded
technology portfolio. Arm continued to see robust customer demand for its products in the fourth quarter withtechnology non-royalty revenue increasing by 18.1% year on year.
Following the acquisition by the Company, Arm increased investment in R&D, which expanded Arm’s productportfolio to include processors optimized for servers, automotive electronics, and AI acceleration. This led to awider range of customers licensing Arm technology, as well as existing customers having more Arm technology tochoose from, both of which helped to drive licensing revenues. This included licenses for processors used bycustomers intending to build Arm-based servers and PC chips, smartphones, networking equipment, autonomous
systems, such as industrial robotics and self-driving vehicles, and for AI-enabled microcontrollers.
Segment income
Segment income on a U.S. dollar basis stayed flat year on year due to an increase in expenses related to stockcompensation scheme and professional fees related to preparations for the proposed initial public offering despite
higher net sales and the improved operational efficiency. In yen terms, segment income increased by ¥7,463 million(18.1%) year on year to ¥48,663 million, due to the weaker yen exchange rate used for translations in the
preparation of the Company’s consolidated financial statements.

OPERATIONS
7
Royalty units(Billion)
Year ended December 31
2021
2022
Royalty units as reported by Arm’s licensees

29.2

30.8

Change Change %
1.6

5.6%

Arm’s licensees reported that they had shipped 30.8 billion Arm-based chips in the year ended December 31, 2022,
an increase of 5.6% year on year.

27

SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2023

TECHNOLOGY DEVELOPMENT
Arm considers the following as its primary areas for increased investment and is evolving technology in both its
mobile business and other businesses with strong growth potential.
Arm’s primary investment areas and main developments
Mobile computing
Opportunity
Main developments

Infrastructure
Opportunity
Main developments

Automotive
Opportunity

Main developments· Arm already has more than 95% market share of the main chips in mobile devices and,over time, has been successfully increasing royalties per chip.
· Arm announced its annual update of technology for smartphones in June 2022,
including the Arm Cortex-X3 and Cortex-A715 CPUs, both based on Armv9 technology,
and Arm Immortalis-G715 GPU, which brings hardware-based ray tracing support tomobile devices, delivering more realistic and immersive gaming experiences.
· Mediatek Inc. announced the Dimensity 9200 chip for premium smartphones in
November 2022. It is the first chip based on the Arm Cortex-X3 and Cortex-A715 CPUs
and Arm Immortalis-G715 announced by Arm in June 2022.
· Also in November 2022, Vivo Communication Technology Co. Ltd. announced that
their x90 Pro flagship smartphone would be the first smartphone to use the Mediatek
Dimensity 9200 chip and started shipping in January 2023.
· Arm has a growing share in networking infrastructure and a nascent share in data center
servers.
· Arm announced adoption of Arm Neoverse-based chips by Google Cloud servers in July
2022. Google Cloud customers can now run workloads on the Ampere Altra chip, basedon Arm Neoverse N1 CPU. Google joins Alibaba, Amazon, and Microsoft in deploying
server chips based on Arm technology.
· Arm announced in September 2022 Neoverse V2, the latest Arm core targeted atproviding world-leading performance for cloud servers, hyperscale workloads, andhigh-performance computing applications.
· Amazon Web Services, Inc. announced in November 2022 that the Arm Neoverse-based
AWS Graviton3E server chip, which is 35% faster than the previous generation chip,
will be deployed early in 2023 in its high-performance server systems.
· As vehicles become smarter, they require more computational capability. Arm is wellpositioned to gain market share by providing energy efficiency and Arm processor
technology has already been licensed by most companies that develop automotive chips.
· Arm announced in July 2022 that it is working with Cruise LLC to scale out theirautonomous driving platform.
· NVIDIA Corporation announced that their future chip for safe and secure autonomousvehicles DRIVE Thor will be based on Arm’s next generation CPU codenamed
Poseidon in September 2022.

IoT
Opportunity

Main developments· For IoT to reach its full potential, it must be secured against hacking and robust against
faults. Arm has developed technology to secure and manage the data in IoT device
networks.
· In June 2022, Arm announced the Arm Mali-C55 Image Signal Processor, its smallest
and most configurable image signal processor designed for IoT devices, such as home
security cameras and drones, which is already seeing success with licensees, such as
Renesas Electronics Corp.

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

28

SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2023

(2) Overview of Financial Position
1. Status of investment assets◆ Carrying amount of investments from SVF (FVTPL) decreased by ¥4,419.9 billion from the previous*1
fiscal year-end to ¥10,489.7 billion, which reflected the following:*2- ¥2,254.7 billion decrease at SVF1 : The balance decreased by $14.59 billion due to a decrease in the fair1value of investments held at the fiscal year-end and by $8.45 billion due to divestments. These were1
partially offset by an increase of $0.45 billion due to new and follow-on investments.
*2- ¥1,754.8 billion decrease at SVF2 : The balance decreased by $18.96 billion due to a decrease in the fairvalue of investments held at the fiscal year-end and by $0.61 billion due to divestments. These werepartially offset by an increase of $2.69 billion due to new and follow-on investments.
*2- ¥410.3 billion decrease at LatAm Funds◆ Carrying amount of investment securities increased by ¥4,621.1 billion from the previous fiscal yearend to ¥7,706.5 billion, which included the following:- Carrying amount of ¥4,842.3 billion for Alibaba shares held at the fiscal year-end- Carrying amount of T-Mobile shares of ¥769.2 billion (a ¥187.8 billion decrease from the previous fiscal
year-end)- Carrying amount of Deutsche Telekom shares of ¥729.5 billion (a ¥211.5 billion increase from theprevious fiscal year-end)◆ Investments accounted for using the equity method decreased by ¥4,504.1 billion from the previous
fiscal year-end to ¥730.4 billion, which reflected the following:- ¥4,572.1 billion decrease in consolidated carrying amount of Alibaba due to its exclusion from equity
method associates. Alibaba shares are now recorded as “investment securities” under financial assets at
FVTPL, for which investment performances are measured at fair value.
2. Changes in liabilities associated with financing activities◆ Interest-bearing debt of SBG decreased by ¥1,135.6 billion from the previous fiscal year-end.
◆ Interest-bearing debt of wholly owned subsidiaries conducting fund procurement decreased by¥1,064.6 billion from the previous fiscal year-end.
- Financial liabilities of $40.45 billion relating to the sale of shares by prepaid forward contracts using
Alibaba shares were derecognized following the physical settlement of a portion of these contracts, while$35.46 billion was newly raised through such contracts.
3. Changes in equity◆ Total equity decreased by ¥1,058.5 billion from the previous fiscal year-end.
- Retained earnings decreased due to a ¥970.1 billion net loss attributable to owners of the parent.
*3- ¥1,055.4 billion worth of shares were repurchased in the fiscal year.
- Exchange differences from the translation of foreign operations increased by ¥1,337.2 billion due to theweaker yen.
◆ Ratio of equity attributable to owners of the parent (equity ratio) was 20.6% at the fiscal year-end,
compared with 21.0% at the previous fiscal year-end.
Notes:
1. Investments from SVF (FVTPL) do not include their investments in the Company’s subsidiaries or investments that were transferredfrom the Company to the funds and continue to be accounted for using the equity method (and are included in “investments
accounted for using the equity method”) prior to and after such transfer.
2. Includes increases in the carrying amount of investments at SVF1, SVF2, and LatAm Funds due to a 9.1% depreciation of the yen
against the U.S. dollar in the foreign currency exchange rate used for translations at the fiscal year-end.
3. The total acquisition amount of 185,700,600 shares purchased during the fiscal year in accordance with board resolutions in
November 2021 and August 2022. On March 30, 2023, the Company retired 252,958,500 treasury shares, corresponding to thenumber of shares repurchased under the two board resolutions.

(Millions of yen)March 31, 2022

March 31, 2023

ChangeChange %Total assets
Total liabilities

47,544,670
35,836,908

43,936,368
33,287,153(3,608,302)(2,549,755)(7.6%)(7.1%)

Total equity

11,707,762

10,649,215(1,058,547)(9.0%)

29

SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2023

(a) Assets(Millions of yen)March 31, 2022

March 31, 2023

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

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

6,925,153
2,594,736
249,414371,313
163,781
282,085
10,586,482
1,781,142
858,577
5,199,480
2,409,641
332,856

1,756,152
233,587(801,032) A(599,812) B
21,014(52,016)
557,893(61,607) C

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

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

730,440
10,489,722
6,110,527
3,646,305
732,890
7,706,501
1,170,845
2,303,620
210,823
156,239
33,349,886(4,504,079) E(4,419,892) F(2,254,747)(1,754,812)(410,333)
4,621,132 G(162,942) H
73,005 I

Total assets

47,544,670

43,936,368(3,608,302)(56,166)
301,567 D(17,939)
1,957

47,568
11,201(4,166,195)

Reasons for changes by primary component
Components
Main reasons for changes from the previous fiscal year-end
Current assets
A Derivative
Derivative financial assets decreased due to the physical settlement of the prepaid forward
financial assets contracts using Alibaba shares in full of the balance of ¥1,033,619 million outstanding at
the previous fiscal year-end. In addition, derivative financial assets for which settlement
became due within one year were recorded in the amount of ¥159,268 million at the fiscal
year-end after being reclassified from non-current assets.

30

SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2023

Components
B Other financial
assetsMain reasons for changes from the previous fiscal year-end· Following the completion of mergers with operating companies or the termination ofoperations without merging by seven Company-sponsored SPACs, the balance at
previous fiscal year-end of $2.66 billion in proceeds received from third-party
investors other than the Company (the "Public Market Investors”) and held in a trust
account was used in mergers or redeemed to the Public Market Investors so that there
was no outstanding balance by the fiscal year-end. For details, see “5. Special purpose
acquisition companies sponsored by the Company” under “(6) Notes to Consolidated
Financial Statements” in “4. Consolidated Financial Statement and Primary Notes.”· At SB Northstar, with the downsizing of its business, investments from asset
management subsidiaries decreased by ¥134,460 million, restricted cash decreased by¥131,474 million, and derivative financial assets in asset management subsidiaries
decreased by ¥48,442 million.

Non-current assets
C Property, plant and · The property, plant and equipment of ¥240,322 million of a U.S. subsidiary engaged inequipment
the renewable energy business was excluded following the company’s exclusion fromconsolidation.
· SoftBank Corp. made a capital investment in telecommunications equipment.
D Goodwill

Goodwill of Arm increased by ¥263,597 million due to the weaker yen exchange rateused for translation against the U.S. dollar.

E Investments
accounted forusing the equity
methodThe carrying amount of Alibaba decreased by ¥4,572,129 million. This reflected
derecognition of investments in Alibaba accounted for using the equity method
following its exclusion from equity method associates as the Company’s voting
ownership in the company fell below 20% during the course of the physical settlementof a portion of the prepaid forward contracts using Alibaba shares from August to
September 2022. Alibaba shares held by the Company at the fiscal year-end arerecorded as “investment securities.”

F Investments from
SVF (FVTPL)· The carrying amount of investments at SVF1 decreased by ¥2,254.7 billion. This
mainly reflected a decrease of $14.59 billion due to a decrease in the fair value ofinvestments held at the fiscal year-end and a decrease of $8.45 billion due to1divestments. These were partially offset by an increase of $0.45 billion due to new1
and follow-on investments.
· The carrying amount of investments at SVF2 decreased by ¥1,754.8 billion. This
mainly reflected a decrease of $18.96 billion due to a decrease in the fair value ofinvestments held at the fiscal year-end and a decrease of $0.61 billion due todivestments. These were partially offset by an increase of $2.69 billion due to new andfollow-on investments.
· The carrying amount of investments at LatAm Funds decreased by ¥410.3 billion. This
mainly reflected a decrease of $4.10 billion due to a decrease in the fair value of*1
portfolio companies held at the fiscal year-end and a decrease of $0.08 billion due to1divestments. These were partially offset by an increase of $0.33 billion due to new1
and follow-on investments.
The carrying amount of investments at each fund as of the fiscal year-end also included
the increase caused by a 9.1% depreciation of the yen against the U.S. dollar in theforeign currency exchange rate used for translations.
For details on the status of investments at SVF1, SVF2, and LatAm Funds, see “(b)SoftBank Vision Funds Segment” under “b. Results by Segment” in “(1) Overview ofResults of Operations.”
31

SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2023

Components
G Investment securities

Main reasons for changes from the previous fiscal year-end· The carrying amount of Alibaba shares held at the fiscal year-end was¥4,842,305 million ($36,264 million). This reflected an increase in the
Alibaba share price, despite the settlement of a portion of prepaid forward
contracts using Alibaba shares, after the carrying amount of Alibaba shares
was newly recorded at ¥4,484,758 million ($30,970 million) at the second
quarter-end.
· The carrying amount of T-Mobile shares decreased by ¥187,849 million($2,059 million) (balance at the fiscal year-end: ¥769,206 million ($5,761
million)). This mainly reflected the sale of 21.2 million T-Mobile shares by
the Company to Deutsche Telekom following its partial exercise of call
options for the shares.
· The carrying amount of Deutsche Telekom shares increased by ¥211,523*2
million ($1,231 million ) due to an increase in the company’s share price.
The balance at the fiscal year-end was ¥729,483 million ($5,463 million).
The carrying amount of T-Mobile shares and Deutsche Telekom shares as of
the fiscal year-end also included the increase caused by a 9.1% depreciation of
the yen against the U.S. dollar in the foreign currency exchange rate used fortranslations.
The carrying amount of investments from LatAm Funds is now included ininvestments from SVF (FVTPL) following the integration of the Latin America
Funds segment into the SoftBank Vision Funds segment in the first quarter. For
details, see “1. Changes in presentation” under “(6) Notes to Consolidated
Financial Statements” in “4. Consolidated Financial Statements and Primary
Notes.”

H Derivative financial assets· Derivative financial assets related to prepaid forward contracts using Alibaba
shares decreased by ¥300,368 million, mainly due to the partial physicalsettlement and the reclassification of those contracts for which settlement
became due within one year to current assets.
· The fair value of the contingent consideration related to T-Mobile shares
increased by ¥242,341 million (balance at the fiscal year-end: ¥833,770
million).

I Other financial assets

WeWork unsecured notes held by the Company, with a face value of $1.65
billion, was recorded at ¥110,735 million. The amount was obtained bydeducting provision for doubtful accounts of ¥71,091 million from the carrying
amount of ¥181,826 million. For details, see “Status of Investment and
Financial Support for WeWork” under “a. Consolidated Results of Operations.”

Notes:
1. Includes the impact from the weaker local currencies against the U.S. dollar
2. Includes the impact from the weaker euro against the U.S. dollar as the shares are held by a U.S. subsidiary32

SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2023

Reference: Cash and cash equivalents by entity
Consolidated cash and cash equivalents increased by ¥1,756.2 billion to ¥6,925.2 billion from the previous fiscal
year-end. Of this, cash and cash equivalents of SBG and wholly owned subsidiaries conducting fund procurement,
etc. increased by ¥1,446.7 billion to ¥4,016.1 billion. For details, see “(3) Overview of Cash Flows.”(Millions of yen)March 31, 2022

March 31, 2023

Change2,569,355
2,502,626

4,016,085
3,454,474

1,446,730
951,848

26,27140,458543,380
18,231

517,109(22,227)

47,754150,462
1,890
24,34072,15936,9302,818
97,546

24,405(113,532)
928
73,206318,661
130,277

280,768
89,821(37,893)(40,456)

824,671
174,346
525,934
401,311

857,430
298,277
532,871
640,448

32,759123,931
6,937
239,137

5,169,001

6,925,153

1,756,152

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

PayPay Corporation, PayPay Bank
*2
Corporation, PayPay Card Corporation
Yahoo Japan Corporation
OthersOthers
Total*1

Notes:
1. PayPay Corporation was previously included in “Others,” but starting from the third quarter it is included in the “SoftBank segment”
as it became a subsidiary of SoftBank Corp. and Z Holdings Corporation in October 2022. The change is reflected retrospectively
for the previous fiscal year-end.
2. Cash and cash equivalents of PayPay Bank Corporation at the fiscal year-end was ¥369,813 million.

33

SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2023

(b) Liabilities(Millions of yen)March 31, 2022

March 31, 2023

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

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

5,129,047
184,105
1,472,260
2,416,872
82,612
180,191
367,367
72,350675,920
10,580,724
14,349,147
652,892
4,499,369
899,351
58,545
163,627
1,828,557
254,941
22,706,429(2,199,815)(56,136)
140,875
448,008(36,980)(374,623)
183,979
38,29455,660(1,800,738)
220,577
26,985(1,141,129)
725,348(71,304)
55,666(607,477)
42,317(749,017)

Total liabilities

35,836,908

33,287,153(2,549,755)

34

A
B
C

D

E

SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2023

Reasons for changes by primary component
Components
Main reasons for changes from the previous fiscal year-end*See “Reference” on the following page for a breakdown of interest-bearing debt.
Current liabilities
A Trade and other payables
Trade and other payables increased mainly due to increases in accounts
payable to merchants and deposits from users (amounts that users candeposit or otherwise use for payments) at PayPay Corporation, as a result of
the increase in gross merchandise value.
B Other financial liabilities· Following the completion of mergers with operating companies or thetermination of operations without merging by seven Company-sponsored
SPACs, the balance at the previous fiscal year-end of $2.51 billion in totalinterests of the Public Market Investors recorded under liabilities as noncontrolling interests subject to possible redemption was derecognized. For
details, see “5. Special purpose acquisition companies sponsored by theCompany” under “(6) Notes to Consolidated Financial Statements” in “4.
Consolidated Financial Statement and Primary Notes.”· At the fiscal year-end, the Company recorded allowance for financial
guarantee contract losses of ¥152,365 million in relation to credit support
provided by SVF2 for a letter of credit facility to WeWork from certain
financial institutions (up ¥130,085 million from the previous fiscal yearend). For details, see “Status of Investment and Financial Support for
WeWork” under “a. Consolidated Results of Operations.”

C Income taxes payable

Income taxes payable of ¥164,638 million were recorded at SBG based on
taxable income. The income included gains on the sale of Alibaba shares tosubsidiaries used for fund procurement, which was carried out in relation to
the early physical settlement that took place during the fiscal year.

Non-current liabilities
D Derivative financial liabilities

E Deferred tax liabilities

Derivative financial liabilities of ¥805,039 million were recorded for
prepaid forward contracts using Alibaba shares that were newly concluded
during the fiscal year.
Deferred tax liabilities are presented on a net basis with deferred tax assets
in the same tax entity in the Consolidated Statement of Financial Position.
Primarily as a result of the intra-group transaction of Alibaba shares during
the fiscal year, it became more probable that SBG would generate taxable
income against which loss carry-forwards could be utilized, for which nodeferred tax assets had been recognized. As a result, ¥506,782 million wasrecognized as a deferred tax asset, resulting in a net decrease in deferred tax
liabilities.

35

SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2023

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

March 31, 2023

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

12,635,554
6,306,590
381,851
5,753,022
10,717161,000(2,233,771)(1,135,647)(873,265) A(165,243) B(1,339)(95,800)

7,393,573
2,857,000

6,328,964
2,065,361(1,064,609)(791,639) C

4,536,573
33,51533,515

4,263,603-(272,970) D(33,515)(33,515)

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

552,681552,681770,004
770,004
14,873
14,873

216,146
216,146 E
38,464
38,464 E(9,179)(9,179)14,114
14,114

4,236,453
3,085,954
469,252
559,846
121,401
1,022,260
418,283
603,977

4,149,812
3,080,878
578,684
490,249
1
1,064,457
485,470
578,987(86,641)(5,076)
109,432(69,597)(121,400)
42,197
67,187(24,990)298,92128,046
414,536

396,075
111,386
412,961

97,154
83,340(1,575)286,988
89,038130,014
77,374(156,974)(11,664)

22,323,580

20,315,191(2,008,389)

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

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

PayPay Corporation, PayPay Bank
*3
Corporation, PayPay Card Corporation
Yahoo Japan Corporation
Other
*2

OthersOther interest-bearing debt
Lease liabilities
Total

Notes:
1. The interest-bearing debt of wholly owned subsidiaries engaged in fund procurement is non-recourse to SBG.
2. PayPay Corporation was previously included in “Others,” but starting from the third quarter, it is included in the “SoftBanksegment” since it became a subsidiary of SoftBank Corp. and Z Holdings Corporation in October 2022. The change is reflected
retrospectively for the previous fiscal year-end.
3. Deposits for banking business of PayPay Bank Corporation are not included in interest-bearing debt.

36

SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2023

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

Details

SBG and wholly owned subsidiaries conducting fund procurement, etc.
SBG
A Borrowings· Borrowings of $4.50 billion made using commitment lines were repaid in the firstquarter.
· The entire ¥325.2 billion of senior loans were repaid in the second quarter. This included¥292.7 billion repaid before maturity.
B Corporate bonds· Foreign currency-denominated straight bonds with face values of $0.27 billion and 0.22
billion euros were repurchased in the first quarter.
· Foreign currency-denominated straight bonds with face values of $0.51 billion and 0.19
billion euros were redeemed upon maturity in the second quarter.
· Foreign currency-denominated straight bonds with face values of $0.51 billion and 1.02
billion euros were repurchased in the third quarter.
· Domestic straight bonds with a face value of ¥385.0 billion were issued in the third
quarter.
· Domestic straight bonds with a face value of ¥337.0 billion were redeemed uponmaturity in the third quarter.
· The carrying amount of foreign currency-denominated straight bonds increased due to a
9.1% depreciation of the yen against the U.S. dollar at the fiscal year-end in the foreign
currency exchange rate used for translations.

Wholly owned subsidiaries conducting fund procurement
C Borrowings
Through Alibaba shares· Borrowings of $6.0 billion made through a margin loan were repaid in full in the second
quarter. There were no borrowings outstanding at the fiscal year-end.
Through Arm shares· $0.50 billion (net) was borrowed through asset-backed finance in the first quarter.
Through T-Mobile shares· Borrowings of $2.06 billion made through a margin loan in the previous fiscal year were
repaid during the six months ended September 30, 2022. There were no borrowings
outstanding at the fiscal year-end.

37

SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2023

Components

Details

D Financial liabilities
relating to sale ofshares by prepaid
forward contracts

Through Alibaba shares$10.49 billion was raised in the first quarter by concluding prepaid forward contracts(forward contracts).
· Financial liabilities relating to sale of shares by prepaid forward contracts of ¥604,888
million ($4.94 billion) were derecognized due to the physical settlement of a portion of
the prepaid forward contracts in the first quarter.
· Financial liabilities relating to sale of shares by prepaid forward contracts of ¥3,958,469
million ($28.57 billion) were derecognized due to the physical settlement of a portion of
the prepaid forward contracts in the second quarter. This included liabilities of¥1,862,409 million ($13.47 billion) that had been recorded upon the conclusion of thecontracts during the six months ended September 30, 2022.
· After the above settlement, $1.09 billion was newly raised in the second quarter by
concluding prepaid forward contracts (forward contracts).
· $6.07 billion was raised in the third quarter by concluding prepaid forward contracts(forward contracts).
· Financial liabilities relating to the sale of shares by prepaid forward contracts of¥974,790 million ($6.94 billion) were derecognized due to the physical settlement of a
portion of the prepaid forward contracts in the third quarter.
· $11.04 billion was raised in the fourth quarter by concluding prepaid forward contracts(forward contracts).
For details, see “(2) Transactions for sale of Alibaba shares by prepaid forward contracts”
under “6. Interest-bearing debt” in “(6) Notes to Consolidated Financial Statements” in “4.
Consolidated Financial Statements and Primary Notes.”

SoftBank Vision Funds segment
SVF1 and SVF2
E Borrowings· Borrowings made through asset-backed finance increased by $1.39 billion at SVF1 and*4decreased by $0.21 billion at SVF2.
· The balance of the borrowings increased due to a 9.1% depreciation of the yen against the
U.S. dollar in the foreign currency exchange rate used for translations.
Note:
4. For details, see “Financing at SVF” under “OVERVIEW” in “(b) SoftBank Vision Funds Segment” in “b. Results by Segment” in“(1) Overview of Results of Operations” in “1. Results of Operations.”

38SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2023

(c) Equity(Millions of yen)March 31, 2022

March 31, 2023

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

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

238,772
2,652,790
414,055
2,006,238(38,791)
3,756,785

18,216(82,821) A(2,509,466) B
367,619 C
1,260,627 D

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

9,975,674
1,732,088

9,029,849
1,619,366(945,825)(112,722)

Total equity

11,707,762

10,649,215(1,058,547)

Reasons for changes by primary component
Components
A Other equity instruments

Main reasons for changes from the previous fiscal year-end
A portion of the USD-denominated Undated Hybrid Notes, which are classified
as equity instruments in accordance with IFRSs, was repurchased for $0.75
billion (face value) in the third quarter.

B Retained earnings· ¥1,412,374 million was deducted following the retirement of 252,958,500
shares of treasury stock in March 2023.
· Net loss attributable to owners of the parent of ¥970,144 million was recorded.

C Treasury stock· SBG acquired 185,700,600 of its own shares for a total of ¥1,055,426 million
during the fiscal year in accordance with board resolutions on November 8, 2021
and August 8, 2022.
· In March 2023, SBG retired 252,958,500 shares of treasury stock (14.68% of thetotal number of shares issued prior to the retirement), a number equal to the total
number of shares repurchased in accordance with the above board resolutions.

D Accumulated othercomprehensive income

Exchange differences from the translation of foreign operations, which arose fromtranslating foreign subsidiaries and associates into yen, increased by ¥1,337,214
million mainly due to the weaker yen against the U.S. dollar, despite a decrease of¥314,356 million due to the exclusion of Alibaba from equity method associates.

*1

Note:
1. The amount of treasury stock retired is calculated using the moving average method.

39

SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2023

(3) Overview of Cash Flows
1. Cash flows from operating activities◆ Income taxes paid of ¥638.2 billion
2. Cash flows from investing activities◆ New investments at SVF2 were significantly reduced, while divestments progressed mainly at SVF1.
- Payments for acquisition of investments by SVF: ¥456.4 billion (¥4,561.3 billion in the previous fiscal
year)- Proceeds from sales of investments by SVF: ¥833.2 billion (¥2,221.8 billion in the previous fiscal year)◆ Proceeds from sales/redemption of investments of ¥619.8 billion from the sale of T-Mobile and othershares◆ Outlays of ¥633.8 billion for purchase of property, plant and equipment and intangible assets due tocapital expenditure mainly at SoftBank Corp.
◆ The above resulted in net cash inflow of ¥547.6 billion from investing activities (compared to net cash
outflow of ¥3,018.7 billion in the previous fiscal year).
3. Cash flows from financing activities◆ Net cash inflow from financing activities was ¥191.5 billion. Funded through continuous asset-backed
finance, the Company remained active in repaying debts, including repayments of margin loans andpurchase of foreign currency-denominated notes. Share repurchases and distribution/repayments tothird-party investors of SVF also continued, as well as dividend payouts.
- Proceeds from interest-bearing debt: ¥9,176.1 billion· Main proceeds at SBG: ¥385.0 billion(from issuance of domestic straight corporate bonds)· Main proceeds at wholly owned subsidiaries conducting fund procurement: ¥4,952.5 billion($35.46 billion through prepaid forward contracts using Alibaba shares and $1.40 billion through assetbacked finance using Arm shares)· Main proceeds at SVF: ¥580.7 billion ($4.5 billion procured at SVF1 through asset-backed finance)- Payments for interest-bearing debt: ¥6,295.0 billion· Main outlays at SBG: ¥1,949.2 billion(for repayment of ¥1,049.3 billion in short-term borrowings and full repayment of ¥325.2 billion insenior loans, repurchase of foreign currency-denominated straight bonds with total face values of $0.79
billion and 1.25 billion euros, and redemption upon maturity of domestic straight bonds with a total
face value of ¥337.0 billion)· Main outlays at wholly owned subsidiaries conducting fund procurement: ¥1,188.5 billion(for full repayment of $6.0 billion in a margin loan borrowed through Alibaba shares, repayment of$2.06 billion in a margin loan borrowed through T-Mobile shares in the previous fiscal year, andrepayment of $0.9 billion in borrowings in asset-backed finance made through Arm shares)· Main outlays at SVF: ¥432.1 billion(for repayment of borrowings totaling $3.32 billion made through asset-backed finance at SVF1 andSVF2 )- Repurchase of treasury stock of ¥1,055.4 billion- Distribution and repayments to third-party investors at SVF of ¥544.2 billion- Payments of ¥358.7 billion for dividends at SBG and for dividends to non-controlling interests in
subsidiaries such as SoftBank Corp.
4. Balance of cash and cash equivalents at the fiscal year-end and its changes◆ The balance of cash and cash equivalents stood at ¥6,925.2 billion at the fiscal year-end, an increase of¥1,756.2 billion from the previous fiscal year-end, due to cash flows from operating, investing, andfinancing activities, as well as the effect of exchange rate changes on cash and cash equivalents of¥275.8 billion reflecting the weaker yen.

40

SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2023

SIGNIFICANT NON-CASH TRANSACTIONSThe Company settled a portion of the prepaid forward contracts using Alibaba shares in physical form during the
fiscal year. This was a non-cash transaction and had no impact on the consolidated cash flows. For details, see “(5)Significant non-cash transactions” under “15. Supplemental information to the consolidated statement of cash
flows” in “(6) Notes to Consolidated Financial Statements” in “4. Consolidated Financial Statements and Primary
Notes.”(Millions of yen)
Fiscal year ended March 31
2022
2023
Cash flows from operating activities
Cash flows from investing activities
Cash flows from financing activities
Effect of exchange rate changes on cash andcash equivalents
Increase in cash and cash equivalents
Cash and cash equivalents at the beginningof the period
Cash and cash equivalents at the end of theperiodChange2,725,450(3,018,654)
602,216

741,292
547,578
191,517(1,984,158)
3,566,232(410,699)

197,264
506,276

275,765
1,756,152

78,501
1,249,876

4,662,725

5,169,001

506,276

5,169,001

6,925,153

1,756,152(a) Cash Flows from Operating Activities
Cash flows from operating activities resulted in a net inflow of ¥741,292 million, a ¥1,984,158 million decrease
year on year. This was mainly due to a decrease in cash inflows primarily from sale of investments at SB Northstar,from ¥2,044,495 million to ¥126,062 million, accompanying the downsizing of its business.
Meanwhile, the amount of income taxes paid was ¥638,160 million. In the third quarter, the Company’s wholly
owned subsidiary paid income tax of ¥201,792 million for its taxable income arising mainly due to realizing
derivative gains related to the early physical settlement of prepaid forward contracts using Alibaba shares. In theprevious fiscal year, the Company recorded payment of corporate taxes on taxable income at SBGJ, which included
gains on the sale of SoftBank Corp. shares in the fiscal year ended March 31, 2021, as well as payment ofwithholding income taxes on dividends from SBGJ to SBG. Such withholding income taxes were refunded within
the previous fiscal year.
(b) Cash Flows from Investing Activities
Primary components
Components
Proceeds from sales/redemptionof investments¥619,775 million

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

41

SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2023

Components
Payments for acquisition of
investments by SVF¥(456,351) million

Primary details· SVF2 invested ¥392,979 million ($3.00 billion) in total.
· LatAm Funds invested ¥41,453 million ($0.31 billion) in total.
· SVF1 invested ¥21,919 million ($0.16 billion) in total.

Proceeds from sales of investments · SVF1 sold all of its shares in Uber and others, as well as portions ofby SVF
multiple investments, for ¥733,528 million ($5.45 billion).
· SVF2 sold all of its shares in KE Holdings and others, as well as portions¥833,180 millionof multiple investments, for ¥97,741 million ($0.75 billion).
Purchase of property, plant andequipment, and intangible assets¥(633,765) million

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

Proceeds from withdrawal of trust
accounts in SPACs¥323,666 million

Following the termination of all operations by six Company sponsored
SPACs without merging with operating companies, $2.38 billion in proceeds
received from the Public Market Investors held in a trust account waswithdrawn from the account. For details, see “Refund and Redemption of
Invested Funds Related to the Company sponsored SPACs” at the end of thissection.

(c) Cash Flows from Financing Activities
Primary components
Components
Payments in short-term interestbearing debt, net*1¥(73,371) million

Primary details
Short-term interest-bearing debt decreased by ¥90,800 million (net) as SBG
redeemed commercial paper.

(Proceeds and payments for interestbearing debt (current liabilities) with
fast turnover and short maturities)

Proceeds from interest-bearing debt (total of A through C below)¥9,176,112 million
A Proceeds from borrowings · SBG made short-term borrowings of ¥514,600 million.
*2· Wholly owned subsidiaries conducting fund procurement borrowed the¥3,778,352 million
following:- ¥180,656 million ($1.40 billion) through asset-backed finance using Arm
shares.
- ¥500,000 million as a margin loan using SoftBank Corp. shares· SVF1 borrowed ¥580,680 million ($4.50 billion) through asset-backed
finance.
· SoftBank Corp. procured ¥990,764 million mainly through thesecuritization of installment sales receivables and sale-and-leaseback
transactions. The company also issued commercial paper for ¥167,000
million.
B Proceeds from issuance of · SBG issued domestic straight bonds totaling ¥385,000 million.
corporate bonds· SoftBank Corp. issued domestic straight bonds totaling ¥120,000 million.
¥565,000 million· Z Holdings Corporation issued domestic straight bonds totaling ¥60,000
million.

42SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2023

Components
C Proceeds fromprocurement by prepaid
forward contracts using
shares¥4,832,760 million

Primary details
Wholly owned subsidiaries conducting fund procurement raised a total of$35.46 billion through prepaid forward contracts (forward contracts) using
Alibaba shares.

Repayment of interest-bearing debt¥(6,294,991) million
Repayment of borrowings*2¥(5,534,321) million· SBG repaid short-term borrowings of ¥1,049,341 million and repaid entire
senior loans of ¥325,204 million, which included ¥292,683 million repaid
before maturity.
· Wholly owned subsidiaries conducting fund procurement repaid
borrowings as follows:- Repaid in full ¥797,820 million ($6.00 billion) in a margin loan borrowed
through Alibaba shares.
- Repaid ¥274,538 million ($2.06 billion) in a margin loan borrowed
through T-Mobile shares in the previous fiscal year.
- Repaid ¥116,136 million ($0.90 billion) in borrowings made throughasset-backed finance using Arm shares.
- Repaid ¥500,000 million margin loan borrowed through SoftBank Corp.
shares.
· SVF1 and SVF2 repaid ¥403,231 million ($3.10 billion) and ¥28,904
million ($0.22 billion), respectively, in borrowings made through assetbacked finance.
· SoftBank Corp. repaid ¥988,233 million in borrowings made mainly
through the securitization of installment sales receivables and sale-andleaseback transactions and redeemed ¥288,400 million in commercial
paper.

Redemption of corporatebonds¥(755,911) million· SBG repurchased foreign currency-denominated straight bonds with facevalues totaling $0.79 billion and 1.25 billion euros, and redeemed foreign
currency-denominated straight bonds with face values of $0.51 billion and0.19 billion euros and domestic straight corporate bonds with a face valueof ¥337,024 million upon maturity.
· Z Holdings Corporation redeemed domestic straight bonds of ¥85,000
million upon maturity.

Distribution/repayment from
SVF to third-party investors¥(544,242) million

SVF1 made distributions to third-party investors.

Redemption of non-controllinginterests subject to possible
redemption¥(319,401) million

Following the termination of all operations by the six Company sponsored
SPACs without merging with operating companies, $2.34 billion was
redeemed to the Public Market Investors. For details, see “Refund andRedemption of Invested Funds Related to the Company sponsored SPACs”
at the end of this section.

43

SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2023

Components
Redemption of other equity
instruments¥(104,597) million

Primary details
A portion of the USD-denominated Undated Hybrid Notes, which areclassified as equity instruments in accordance with IFRSs, was repurchased
for $0.75 billion (face value).

Purchase of treasury stock¥(1,055,436) million

SBG repurchased 185,700,600 of its own shares for ¥1,055,426 million inaccordance with board resolutions on November 8, 2021 and on August 8,
2022.

Cash dividends paid¥(70,241) million

SBG paid dividends.

Cash dividends paid to
non-controlling interests¥(288,452) million

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

Notes:
1. “Proceeds in short-term interest-bearing debt, net” represents cash flows from financing activities that meet the requirement of“Reporting cash flows on a net basis” under IFRSs.
2. “Proceeds from borrowings” and “Repayment of borrowings” include proceeds of ¥1,339,025 million and outlays of ¥2,117,252
million related to borrowings with a contracted term of one year or less.

Refund and Redemption of Invested Funds Related to the Company sponsored SPACs
The Company sponsored SPACs execute an initial public offering and raise capital through contributions from the
Public Market Investors. The proceeds received from the Public Market Investors are held in a trust account until
completion of the initial merger or redemption to the Public Market Investors. If those SPACs are unable tocomplete a merger within 24 months from the date of the initial public offering and cease all operations, the funds
in a trust account will be withdrawn and redeemed in full to the Public Market Investors. In such cases, theproceeds withdrawn from a trust account to the SPACs are recorded in the Company’s consolidated cash flow
statements as “Proceeds from withdrawal of trust accounts in SPACs” under cash flows from investing activities
and, when subsequently redeemed to the Public Market Investors, as “Redemption of non-controlling interests
subject to possible redemption” under cash flows from financing activities.
(4) Forecasts
The Company does not provide forecasts of consolidated results of operations as they are difficult to project due tonumerous uncertainties affecting earnings.

44

SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2023

Notes to “1. Results of Operations”
1

2
3

4
5
6
7

Includes share exchanges. During the fiscal year, SVF1 sold its stake in Grofers International Pte. Ltd. to Zomato Limited in
exchange for shares in Zomato Limited as consideration; its stakes in Zymergen, Inc. to Ginkgo Bioworks Holdings, Inc. in
exchange for shares in Ginkgo Bioworks Holdings, Inc. as consideration; and its stakes in Candy Digital, Inc. to Fanatics
Holdings, Inc. in exchange for shares in Fanatics Holdings, Inc. as consideration. LatAm Funds exchanged its shares in
Yaydoo, Inc. for shares in PayStand Inc. and shares in Inco Limited for shares in Arco Platform Limited. These shareexchanges are treated as full exits from investments and acquisition of new investments, with the sale price and acquisition
cost being recorded in gross, respectively, and with the difference between the acquisition cost of shares initially held and saleprice (acquisition cost of the exchanged shares) being recorded as realized gains or losses on investments.
Interest expenses of SBG include interest expenses of its wholly owned subsidiaries conducting fund procurement.
The Company applied the equity method to Alibaba’s consolidated financial statements for a reporting period staggered by theprevious three months because it is impractical to align reporting periods with Alibaba due to factors, such as contracts withthe company. Necessary adjustments are made to reflect significant transactions and events announced by Alibaba during thestaggered three-month period.
Private companies valued at over $1 billion at the time of investment
After deducting transaction fees, etc.
Drawn capital of SVF1 excludes the amount repaid to limited partners due to investment plan changes and other reasons after
the capital was drawn.
This analysis is based on the actual shipments of royalty units (chips incorporating Arm technology) by Arm licensees for 12months ended December 31, 2022, as reported by licensees in the royalty reports. Arm’s licensees report their actual
shipments of royalty units one quarter in arrears, and therefore, the royalty unit analysis in this report is based on chips
shipped for 12 months ended December 31, 2022. In contrast, royalty revenues are accrued in the same quarter the chips areshipped based on estimates.

2. Basic Approach to the Selection of Accounting Standards
The Company adopts International Financial Reporting Standards (IFRSs).

45

SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2023

3. Notes to Summary Information
Significant Changes in Scope of Consolidation for the Fiscal Year Ended March 31, 2023
(Specified subsidiary (one entity) excluded from the scope of consolidation)
On March 1, 2023, Skybridge Corporation was dissolved due to an absorption-type merger with SoftBank
Group Corp. as the surviving company and thus excluded from the scope of consolidation.

46

SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2023

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

Definition

SoftBank Group Corp.

SoftBank Group Corp. (stand-alone basis)

The Company

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

SB Northstar LP

SVF1

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

SVF2

SoftBank Vision Fund II-2 L.P.

SVF2 LLC

SVF II Investment Holdings LLC

LatAm Funds

SBLA Latin America Fund LLC

SLA LLCSLA Holdco II LLC

SVF

SVF1, SVF2, and LatAm Funds

SBIA

SB Investment Advisers (UK) Limited

SBGA

SB Global Advisers Limited

SBLA

SBLA Advisers Corp.

Arm

Arm Limited

Fortress

Fortress Investment Group LLC

SprintSprint Corporation

Alibaba

Alibaba Group Holding Limited

WeWork

WeWork Inc.

MgmtCoMASA USA LLC

47

SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2023

For the fiscal year ended March 31, 2023, the accounts of the consolidated financial statements have beenchanged as follows:
Consolidated Statement of Financial Position
Previous

Current

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

Third-party interests in SVF

Consolidated Statement of Profit or Loss
Previous

Current

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

Gain (loss) on investments at SoftBank Vision Funds

Change in third-party interests in SVF1 and SVF2

Change in third-party interests in SVF

Consolidated Statement of Cash Flows
Previous

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

Change in third-party interests in SVF1 and SVF2

Change in third-party interests in SVF

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

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

Contributions into SVF1 from third-party investors

Contributions into SVF from third-party investors

Distribution/repayment from SVF1 to third-party
investors

Distribution/repayment from SVF to third-party
investors

48

SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2023

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

As ofMarch 31, 2022

As ofMarch 31, 2023

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

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

6,925,153
2,594,736
249,414371,313
163,781
282,085
10,586,482

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

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

1,781,142
858,577
5,199,480
2,409,641
332,856
730,440
10,489,722
7,706,501
1,170,845
2,303,620
210,823
156,239
33,349,886
43,936,368

49

SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2023

(Millions of yen)

As ofMarch 31, 2022

As ofMarch 31, 2023

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

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

5,129,047
184,105
1,472,260
2,416,872
82,612
180,191
367,367
72,350675,920
10,580,724

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

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

14,349,147
652,892
4,499,369
899,351
58,545
163,627
1,828,557
254,941
22,706,429
33,287,153

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

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

238,772
2,652,790
414,055
2,006,238(38,791)
3,756,785
9,029,849

Non-controlling interests
Total equity
Total liabilities and equity

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

1,619,366
10,649,215
43,936,368

50

SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2023

(2) Consolidated Statement of Profit or Loss and Consolidated Statement of Comprehensive Income
Consolidated Statement of Profit or Loss
(Millions of yen)

Fiscal year ended
March 31, 2022
6,221,534(2,955,960)
3,265,574

Fiscal year ended
March 31, 2023
6,570,439(3,242,397)
3,328,042

104,367

4,560,500(3,625,827)
86,718(3,434,742)(5,322,265)(73,294)(835,059)

Selling, general and administrative expenses
Finance cost
Foreign exchange loss
Income (loss) on equity method investments
Derivative gain (excluding gain (loss) on investments)
Change in third-party interests in SVF
Other gain (loss)
Income before income tax
Income taxes
Net income(2,551,722)(382,512)(706,111)
341,385
1,234,708
970,559393,299(869,562)(592,637)(1,462,199)(2,695,328)(555,902)(772,270)(96,677)
54,256
1,127,949(24,138)(469,127)(320,674)(789,801)

Net income attributable to
Owners of the parent
Non-controlling interests
Net income(1,708,029)
245,830(1,462,199)(970,144)
180,343(789,801)

Earnings per share
Basic earnings per share (Yen)
Diluted earnings per share (Yen)(1,018.58)(1,025.67)(652.37)(662.41)

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

51

SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2023

Consolidated Statement of Comprehensive Income(Millions of yen)

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

52

Fiscal year ended
March 31, 2022
(1,462,199)

Fiscal year ended
March 31, 2023
(789,801)(114)
30,32730,213

3,240
6,194
356
9,790

(1,378)(40,962)2,217,469(51,932)
2,123,197
2,153,410
691,211(598)(72,791)
1,221,249
100,291
1,248,151
1,257,941
468,140

449,419
241,792
691,211

293,116
175,024
468,140

SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2023

(3) Consolidated Statement of Changes in Equity
For the fiscal year ended March 31, 2022
(Millions of yen)

Equity attributable to owners of the parent

As of April 1, 2021

Commonstock

Capitalsurplus

Other equity
instruments

Retainedearnings

Treasurystock

Accumulated
othercomprehensive
incomeSubtotal

238,7722,618,504

496,876

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

338,329

10,212,826

Comprehensive income
Net income
Other comprehensive income

-

-

-

(1,708,029)--

2,157,715(1,708,029)
2,157,715

Total comprehensive income

-

-

-

(1,708,029)-

2,157,715

449,686---(75,947)--(75,947)---(32,043)--(32,043)

-

-

-

(114)

-

114

-

-

-

-

(2,768)(592,150)-(594,918)---(2,475,817)

2,475,817

-

-

-

-

-

-

-

-

-

-

15,897----

15,897-(1,489)

-

-

-

-

(1,489)

-

1,605

-

-

-

-

1,605

-

57

-

-

-

-

57

-

16,070-(2,586,689)

1,883,667

114(686,838)

238,772

2,634,574

496,876

4,515,704(406,410)

2,496,158

9,975,674

Transactions with owners andother transactions
Cash dividends
Distribution to owners of other
equity instruments
Transfer of accumulated othercomprehensive income toretained earnings
Purchase and disposal oftreasury stock
Retirement of treasury stock
Changes from loss of control
Changes in interests in
subsidiaries
Changes in associates’ interestsin their subsidiaries
Share-based paymenttransactions
Other
Total transactions withowners and othertransactions
As of March 31, 2022

53

SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2023
(Millions of yen)

Equity attributable to owners of theparentAccumulated othercomprehensive income
directly relating to assets
classified as held for sale

Total

Noncontrollinginterests

Total equity

As of April 1, 2021

267

10,213,093

1,742,500

11,955,593

Comprehensive income
Net income
Other comprehensive income(267)(1,708,029)
2,157,448

245,830(4,038)(1,462,199)
2,153,410

Total comprehensive income(267)

449,419

241,792

691,211-(75,947)(303,172)(379,119)-(32,043)-(32,043)

-

-

-

-

-

(594,918)-(594,918)

-

-

-

-

-

-

(18,156)(18,156)-

15,89738,01353,910-(1,489)-(1,489)-1,605

26,221

27,826

-

57

4,890

4,947

-

(686,838)(252,204)(939,042)-

9,975,674

1,732,088

11,707,762

Transactions with owners andother transactions
Cash dividends
Distribution to owners of other
equity instruments
Transfer of accumulated othercomprehensive income toretained earnings
Purchase and disposal oftreasury stock
Retirement of treasury stock
Changes from loss of control
Changes in interests in
subsidiaries
Changes in associates’ interestsin their subsidiaries
Share-based paymenttransactions
Other
Total transactions withowners and othertransactions
As of March 31, 2022

54

SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2023

For the fiscal year ended March 31, 2023
(Millions of yen)

Equity attributable to owners of the parent

As of April 1, 2022

Commonstock

Capitalsurplus

Other equity
instruments

Retainedearnings

Treasurystock

Accumulated
othercomprehensive
incomeTotal

238,772

2,634,574

496,876

4,515,704(406,410)

2,496,158

9,975,674

Comprehensive income
Net income
Other comprehensive income

-

-

-

(970,144)--

1,263,260(970,144)
1,263,260

Total comprehensive income

-

-

-

(970,144)-

1,263,260

293,116---(70,327)--(70,327)---(36,680)--(36,680)--(82,821)(21,776)--(104,597)

-

-

-

2,633

-

(2,633)

-

-

-

-

(798)

(1,044,755)-(1,045,553)

-

-

-

(1,412,374)-

1,412,374
-

-

-

-

4,899

-

-

-

-

4,899

-

(5,845)

-

-

-

-

(5,845)-

21,223----

21,223

-

(463)

-

-

-

-

(463)

-

(1,598)

-

-

-

-

(1,598)-18,216(82,821)(1,539,322)

367,619(2,633)(1,238,941)

238,772

2,652,790

414,055

2,006,238(38,791)

3,756,785

9,029,849

Transactions with owners andother transactions
Cash dividends
Distribution to owners of other
equity instruments
Redemption and cancellationof other equity instruments
Transfer of accumulated othercomprehensive income toretained earnings
Purchase and disposal oftreasury stock
Retirement of treasury stock
Changes from loss of control
Changes in interests in
subsidiaries
Changes in associates’ interestsin their subsidiaries
Changes in interests inassociates’ capital surplus
Share-based paymenttransactions
Other
Total transactions withowners and othertransactions
As of March 31, 2023

55

SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2023
(Millions of yen)

Noncontrolling interests

As of April 1, 2022
Comprehensive income
Net income
Other comprehensive income
Total comprehensive income
Transactions with owners andother transactions
Cash dividends
Distribution to owners of other
equity instruments
Redemption and cancellation ofother equity instruments
Transfer of accumulated othercomprehensive income toretained earnings
Purchase and disposal oftreasury stock
Retirement of treasury stock
Changes from loss of control
Changes in interests in
subsidiaries
Changes in associates’ interestsin their subsidiaries
Changes in interests inassociates’ capital surplus
Share-based paymenttransactions
Other
Total transactions withowners and othertransactions
As of March 31, 2023

Total equity

1,732,088

11,707,762

180,343(789,801)(5,319)1,257,941

175,024

468,140(288,175)(358,502)-(36,680)-(104,597)---(1,045,553)(5,248)(5,248)27,72832,627-(5,845)-

21,223

37,11636,653(59,167)(60,765)(287,746)(1,526,687)

1,619,366

10,649,215

56

SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2023

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

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

57

Fiscal year ended
March 31, 2022

Fiscal year ended
March 31, 2023

(1,462,199)
852,424(789,801)
893,488(237,707)(4,638,430)

3,625,827
382,512706,111(341,385)(1,234,708)(970,559)(480,017)
592,637
514,478

5,322,265
555,902772,270
96,677(54,256)(1,127,949)
97,432
320,674
152,514

136,989

49,067(8,234)

138,915

1,423,990

2,032

106,512(131,796)(406,313)(11,623)
295,202175,359
3,659,296
37,260(381,770)(873,717)
284,3812,725,450(517,155)(18,929)
439,566
11,1201,573,606
111,740(418,163)(638,160)
112,269
741,292

SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2023

(Millions of yen)

Cash flows from investing activities
Payments for acquisition of investments
Proceeds from sales/redemption of investments
Payments for acquisition of investments by SVF
Proceeds from sales of investments by SVF
Payments for acquisition of investments by asset management
subsidiaries
Proceeds from loss of control over subsidiaries
Payments for acquisition of marketable securities for short-term
trading
Proceeds from sales/redemption of marketable securities for
short-term trading
Purchase of property, plant and equipment, and intangible
assetsPayments for loan receivables
Collection of loan receivables
Payments into restricted cash
Proceeds from withdrawal of restricted cash
Proceeds from withdrawal of trust accounts in SPACs
Other
Net cash (used in) provided by investing activities
Cash flows from financing activities
Repayment of short-term interest-bearing debt, net
Proceeds from interest-bearing debt
Repayment of interest-bearing debt
Repayment of lease liabilities
Contributions into SVF from third-party investors
Distribution/repayment from SVF to third-party investors
Redemption of non-controlling interests subject to possible
redemption
Redemption of other equity instruments
Distribution to owners of other equity instruments
Purchase of treasury stock
Cash dividends paid
Cash dividends paid to non-controlling interests
Other
Net cash provided by financing activities
Effect of exchange rate changes on cash and cash equivalents
Increase in cash and cash equivalents
Cash and cash equivalents at the beginning of the year
Cash and cash equivalents at the end of the year

58

Fiscal year ended
March 31, 2022

Fiscal year ended
March 31, 2023

(522,092)
430,168(4,561,320)
2,221,771(313,413)
619,775(456,351)
833,180(155,515)-

143,079

6,998(118,600)(81,143)

118,219

90,395(835,073)(633,765)(119,776)
84,997(131,936)
486,820(59,396)(3,018,654)(14,932)
94,020(159)
3,233
323,666
76,074
547,578(1,173,787)
12,880,985(8,797,688)(330,276)
278,497(1,228,703)(73,371)
9,176,112(6,294,991)(266,423)
17,857(544,242)-(319,401)(32,043)(602,361)(75,847)(309,649)(6,912)602,216
197,264
506,276
4,662,725
5,169,001(104,597)(36,680)(1,055,436)(70,241)(288,452)
51,382
191,517
275,765
1,756,152
5,169,001
6,925,153

SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2023

(5) Significant Doubt about Going Concern Assumption
There are no applicable items.
(6) Notes to Consolidated Financial Statements
1. Changes in presentation(Consolidated statement of financial position)
In connection with the integration of the Latin America Funds segment into the SoftBank Vision Funds segment,
the investments from LatAm Funds, which were included in “Investment securities” and “Other financial assets(non-current)” in the past fiscal year, are included in “Investments from SVF (FVTPL)” for the fiscal year ended
March 31, 2023. In addition, the third-party interests in LatAm Funds, which were included in “Other financial
liabilities (non-current)” in the past fiscal year, are included in “Third-party interests in SVF” for the fiscal year
ended March 31, 2023. In order to reflect the changes in presentation, ¥1,123,198 million, which was included in“Investment securities,” and ¥20,025 million, which was included in “Other financial assets (non-current)” as ofMarch 31, 2022, are reclassified as “Investments from SVF (FVTPL).” Furthermore, ¥80,663 million, which was
included in “Other financial liabilities (non-current)” as of March 31, 2022, is reclassified as “Third-party
interests in SVF.”“Investments from asset management subsidiaries,” “Securities pledged as collateral in asset management
subsidiaries,” and “Derivative financial assets in asset management subsidiaries,” which were separately
presented in the past fiscal year, are included in “Other financial assets (current)” for the fiscal year ended March
31, 2023 since the amounts decreased and became insignificant. In order to reflect the changes in presentation,¥158,094 million, ¥1,927 million, and ¥48,466 million, which were separately presented as “Investments fromasset management subsidiaries,” “Securities pledged as collateral in asset management subsidiaries,” and“Derivative financial assets in asset management subsidiaries” as of March 31, 2022, respectively, are included
in “Other financial assets (current).”(Consolidated statement of profit or loss and consolidated statement of comprehensive income)In connection with the integration of the Latin America Funds segment into the SoftBank Vision Funds segment,
gain and loss on investments at LatAm Funds, which were presented as “Gain (loss) on investments at Latin
America Funds” in the past fiscal year, are included in “Gain (loss) on investments at SoftBank Vision Funds”
for the fiscal year ended March 31, 2023. In addition, the change in third-party interests in LatAm Funds, which
was included in “Other gain (loss)” in the past fiscal year, is included in “Change in third-party interests in SVF”
for the fiscal year ended March 31, 2023. In order to reflect the changes in presentation, ¥111,070 million, which
was presented as “Gain on investments at Latin America Funds,” is reclassified as “Loss on investments at
SoftBank Vision Funds” for the fiscal year ended March 31, 2023. Similarly, ¥(2,115) million, which was
included in “Other gain (loss),” is reclassified as “Change in third-party interests in SVF.”(Consolidated statement of cash flows)a. Cash flows from operating activities
In connection with the integration of the Latin America Funds segment into the SoftBank Vision Funds
segment, gain and loss on investments at LatAm Funds, which were presented as “(Gain) loss on investments
59SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2023

at Latin America Funds” in the past fiscal year, are included in “(Gain) loss on investments at SoftBank
Vision Funds” for the fiscal year ended March 31, 2023. In addition, the change in third-party interests in
LatAm Funds, which was included in “(Gain) loss on other investments and other (gain) loss” in the past fiscal
year, is included in “Change in third-party interests in SVF” for the fiscal year ended March 31, 2023. In orderto reflect the changes in presentation, ¥(111,070) million, which was presented as “Gain on investments at
Latin America Funds,” and ¥2,115 million, which were included in “(Gain) loss on other investments andother (gain) loss” for the fiscal year ended March 31, 2022, are reclassified as “Loss on investments at
SoftBank Vision Funds” and “Change in third-party interests in SVF,” respectively.
“(Increase) decrease in restricted cash in asset management subsidiaries,” which was included in “Other” inthe past fiscal year, is separately presented for the fiscal year ended March 31, 2023 since the amountincreased and became significant. In order to reflect the change in presentation, ¥(8,234) million, which was
included in “Other” for the fiscal year ended March 31, 2022, is reclassified as “(Increase) decrease in
restricted cash in asset management subsidiaries.”b. Cash flows from investing activities
In connection with the integration of the Latin America Funds segment into the SoftBank Vision Funds
segment, the payments for the investing activities by LatAm Funds, which were included in “Payments foracquisition of investments” and “Payments for loan receivables” in the past fiscal year, are included in“Payments for acquisition of investments by SVF” for the fiscal year ended March 31, 2023. In order to reflect
the changes in presentation, ¥(471,398) million, which was included in “Payments for acquisition of
investments,” and ¥(12,471) million, which was included in “Payments for loan receivables” for the fiscal
year ended March 31, 2022, are reclassified as “Payments for acquisition of investments by SVF,”
respectively.
c. Cash flows from financing activities
In connection with the integration of the Latin America Funds segment into the SoftBank Vision Funds
segment, the contributions into LatAm Funds, which were included in “Other” in the past fiscal year, areincluded in “Contributions into SVF from third-party investors” for the fiscal year ended March 31, 2023. Inorder to reflect the change in presentation, ¥673 million, which was included in “Other” for the fiscal year
ended March 31, 2022, is reclassified as “Contributions into SVF from third-party investors.”

60

SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2023

2. Significant accounting policies(Significant accounting policies for the SoftBank Vision Funds segment)
For SVF1, SVF2, and LatAm Funds, the Company applies the following accounting policies.
(1) Consolidation of SVF1, SVF2, and LatAm Funds by the Company
SVF1 and SVF2 are limited partnerships established by their respective general partners which are whollyowned subsidiaries of the Company (SVF2 owns limited liability companies including SVF2 LLC) as its
subsidiaries and by their forms of organization, qualify as structured entities. SVF1 and SVF2 are consolidated
by the Company for the following reasons.
As of March 31, 2023, SVF1 and SVF2 are managed by SBIA and SBGA, respectively, which are whollyowned subsidiaries of the Company in the UK. SVF1 and SVF2 make investment decisions through each
investment committee, which was established in SBIA and SBGA, respectively. As such, the Company has
power as defined under IFRS 10 “Consolidated Financial Statements” over SVF1 and SVF2. Furthermore,
SBIA receives performance fees and SBGA receives performance-linked management fees. The Company
receives distributions attributable to limited partners based on the investment performance as returns from
SVF1 and SVF2. The Company has the ability to affect those returns through its power over SVF1 and SVF2,
and therefore, the Company is deemed to have control as stipulated in IFRS 10 “Consolidated Financial
Statements” over SVF1 and SVF2.
LatAm Funds is a limited liability company in which a wholly-owned subsidiary of the Company invests(LatAm Funds owns limited partnerships and the other forms of entities). LatAm Funds is consolidated by theCompany as it holds more than one-half of the voting rights of LatAm Funds.
Inter-company transactions such as management fees and performance fees to SBIA paid or to be paid, asapplicable, from SVF1, and management fees, performance-linked management fees and performance fees to
SBGA paid or to be paid, as applicable, from SVF2 or LatAm Funds are eliminated in consolidation.

61

SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2023

(2) Portfolio company investments made by SVF1, SVF2, and LatAm Funds
a. Investments in subsidiaries
Of the portfolio company investments made by SVF1, SVF2, and LatAm Funds, the portfolio companies that
the Company is deemed to control under IFRS 10 “Consolidated Financial Statements” are subsidiaries of theCompany. Accordingly, their results of operations, assets and liabilities are included in the Company’s
consolidated financial statements.
Gain and loss on investments in the subsidiaries of the Company which are recognized in SVF1, SVF2, and
LatAm Funds are eliminated in consolidation.
b. Investments in associates and joint ventures
Of the portfolio company investments made by SVF1, SVF2, and LatAm Funds, the portfolio companies overwhich the Company has significant influence under IAS 28 “Investments in Associates and Joint Ventures”
are associates of the Company, and the portfolio companies that are joint ventures of the Company when, as
defined under IFRS 11 “Joint Arrangements,” SVF1, SVF2, and LatAm Funds have joint control with otherinvestors under contractual arrangements and the investors have rights to the net assets of the arrangement.
The investments in associates and joint ventures of the Company made by SVF1, SVF2, and LatAm Funds
are accounted for as financial assets at FVTPL in accordance with paragraph 18 of IAS 28 “Investments in
Associates and Joint Ventures” and presented as “Investments from SVF (FVTPL)” in the consolidated
statement of financial position. The payments for these investments are presented as “Payments foracquisition of investments by SVF” and the proceeds from sales of these investments are presented as“Proceeds from sales of investments by SVF” under cash flows from investing activities in the consolidated
statement of cash flows.
If the investments in associates and joint ventures that were transferred from SoftBank Group Corp. and its
subsidiaries to SVF1, SVF2 or LatAm Funds were accounted for using the equity method prior to the transfer,these investments continue to be accounted for using the equity method after the transfer to SVF1, SVF2 or
LatAm Funds and presented as “Investments accounted for using the equity method” in the consolidated
statement of financial position. Gain and loss on the investments which were recognized in SVF1, SVF2 or
LatAm Funds are eliminated in consolidation and gain and loss on the investments accounted for using theequity method are presented as “Income (loss) on equity method investments” in the consolidated statementof profit or loss.
c. Other investments
Investments other than those in associates or joint ventures of the Company made by SVF1, SVF2, and
LatAm Funds are accounted for as financial assets at FVTPL. The presentation of these investments in the
consolidated statement of financial position and the consolidated statement of cash flows are the same as theabove “b. Investments in associates and joint ventures.”62SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2023

(3) Contribution from limited partners in SVF1 and SVF2, and investors in LatAm Funds, SVF2 LLC and SLA
LLC (collectively “SVF Investors”)
a. Contribution from SVF Investors other than the Company (“Third-Party Investors,” and each a “Third-Party
Investor”)
The interests attributable to Third-Party Investors in SVF1, SVF2, and LatAm Funds are classified as
financial liabilities, “Third-party interests in SVF” in the consolidated statement of financial position, due tothe predetermined finite life and contractual payment provision to each of Third-Party Investors at the end of
the finite life within the constitutional agreements relating to SVF1, SVF2, and LatAm Funds. The liabilities
are classified as “financial liabilities measured at amortized cost” upon initial recognition. The carrying
amounts attributable to Third-Party Investors represent the amounts that would be distributed in accordancewith the constitutional agreements in a theoretical liquidation scenario at the end of each quarter.
Third-Party Investor in SVF2 and LatAm Funds is entitled to make full or partial payments of its investments
and related adjustments at any point in time, at its discretion, from the date it became an investor in SVF2
LLC or SLA LLC to the end of company life of SVF2 LLC or SLA LLC, and as of March 31, 2023, theCompany has recognized receivables from Third-Party Investor. The receivables are included in “Other
financial assets (non-current)” in the consolidated statement of financial position.
“Third-party interests in SVF” fluctuates due to the results of SVF1, SVF2, and LatAm Funds in addition tocontributions from Third-Party Investors, and distributions and repayments of investments to Third-Party
Investors, respectively. The fluctuations due to the results of SVF1, SVF2, and LatAm Funds are presented as“Change in third-party interests in SVF” in the consolidated statement of profit or loss.
Contributions from Third-Party Investors are included in “Contributions into SVF from third-party investors”
under cash flows from financing activities in the consolidated statement of cash flows. The distributions andrepayments of investments to Third-Party Investors are included in “Distribution/repayment from SVF tothird-party investors” under cash flows from financing activities in the consolidated statement of cash flows.
No cash contributions into SVF2 and LatAm Funds from Third-Party Investors and no cash
distributions/repayments from SVF2 and LatAm Funds to Third-Party Investors were made as of March 31,
2023.
Uncalled committed capital from Third-Party Investors is not subject to IFRS 9 “Financial Instruments,” and,
therefore, such amount is not recorded in the consolidated statement of financial position.
b. Contribution from the Company
Contributions to SVF1, SVF2, and LatAm Funds from the Company are eliminated in consolidation.

63

SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2023

3. Segment information(1) Description of reportable segments
The Company’s reportable segments are components of business activities for which discrete financial
information is available, and such information is regularly reviewed by the Company’s Board of Directors inorder to make decisions about the allocation of resources and assess its performance.
For the fiscal year ended March 31, 2022, the Company had five reportable segments, the Investment Businessof Holding Companies segment, the SoftBank Vision Funds segment, the SoftBank segment, the Armsegment, and the Latin America Funds segment. As a result of the revision for its segment classifications, theLatin America Funds segment has been integrated into the SoftBank Vision Funds segment from the threemonth period ended June 30, 2022, since LatAm Funds has been managed by SBGA, which manages SVF2.
In addition, PayPay Corporation, which was previously included in “Other,” is classified in the SoftBanksegment from the three-month period ended December 31, 2022, since PayPay Corporation became asubsidiary of SoftBank Corp. and Z Holdings Corporation.
The Investment Business of Holding Companies segment conducts, mainly through SoftBank Group Corp. asa strategic investment holding company, investment activities in a wide range of sectors in Japan and overseas
directly or through subsidiaries of the Company. The Investment Business of Holding Companies segment
consists of SoftBank Group Corp., SoftBank Group Capital Limited, SoftBank Group Japan Corporation, SB
Northstar that is an asset management subsidiary, and certain subsidiaries of the Company that conduct
investment or funding. Gain and loss on investments at Investment Business of Holding Companies consist ofgain and loss arising from investments held directly by SoftBank Group Corp. or through subsidiaries of theCompany. However, gain and loss on investments relating to investments in subsidiaries, including dividend
income from subsidiaries and impairment loss on investments in subsidiaries, are excluded.
The SoftBank Vision Funds segment conducts, mainly through SVF1, SVF2, and LatAm Funds investment
activities in a wide range of technology sectors. Primarily, gain and loss on investments at SVF1, SVF2,
LatAm Funds, and others consist of gain and loss arising from investments held by SVF1, SVF2, and LatAm
Funds including the investment in the Company’s subsidiary.
The SoftBank segment provides, mainly through SoftBank Corp., mobile services, sale of mobile devices,
broadband services, and solution services in Japan, through Yahoo Japan Corporation and LINE Corporation,internet advertising and e-commerce services, and through PayPay Corporation, payment and financial
services.
The Arm segment provides, through Arm, designs of microprocessor intellectual property and related
technology, sale of software tools, and related services.
Information on business segments, which is not included in the reportable segments, is classified in “Other.”“Other” includes mainly Fortress and the Fukuoka SoftBank HAWKS-related operations.
“Reconciliations” includes an elimination of intersegment transactions, as well as an elimination of gain andloss on the investment in shares in Arm and PayPay Corporation, subsidiaries of the Company, and WeWork,an equity method associate, and others, which are included in segment income of the SoftBank Vision Funds
segment.
64SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2023

Segment information for the fiscal year ended March 31, 2022 is presented based on the reportable segments
after the aforementioned change.
(2) Net sales and income of reportable segments
Income of reportable segments is defined as “Income before income tax.” As in the consolidated statement of
profit or loss, “Gain (loss) on investments” included in segment income includes realized gain and loss frominvestments in financial assets at FVTPL for which investment performance is measured at fair value,
unrealized gain and loss on valuation of investments, dividend income from investments, derivative gain andloss relating to investments in financial assets at FVTPL, and realized gain and loss from investments
accounted for using the equity method. The Investment Business of Holding Companies segment calculates its
segment income by eliminating gain and loss on investments relating to investments in subsidiaries, including
dividend income from subsidiaries and impairment loss on investments in subsidiaries.
Intersegment transaction prices are determined under the same general business conditions as applied forexternal customers.

65

SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2023

For the fiscal year ended March 31, 2022
(Millions of yen)

Reportable segments
Investment Businessof Holding Companies

SoftBank Vision
Funds

Customers
Intersegment--

5,730,072
3,044

299,516
497

Total

-

-

5,733,116

300,013965,158(2,553,027)

849,735

41,200(4,435)(755)(743,230)(75,443)

104,135(3,434,469)

41,946

7,769(277,108)(33,278)(62,445)(816)(705,108)

(391)

505

-

376,433-(38,894)

1,198

1,236,686

2,056

750

(1,305)

SoftBank

Arm

Net sales

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

Total

Other

Reconciliations

Consolidated

Net sales
Customers
Intersegment

6,029,588
3,541

191,946
11,702(15,243)

6,221,534-

Total

6,033,129

203,648(15,243)

6,221,534

Segment income
Depreciation andamortization
Gain (loss) on(696,934)

37,340(209,968)(869,562)(823,863)(28,561)-(852,424)(3,280,619)

44,470(198,593)(3,434,742)(373,647)(13,709)

4,844(382,512)(704,994)(1,117)-(706,111)

338,737

19,456(16,808)341,385

1,238,187(3,479)-1,234,708

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

66

SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2023

For the fiscal year ended March 31, 2023
(Millions of yen)

Reportable segments
Investment Businessof Holding Companies

SoftBank Vision*
Funds

Customers
Intersegment--

5,953,374
3,163

381,746
-

Total

-

-

5,956,537

381,746

3,349,846(4,308,291)

592,782

48,663(4,391)(1,230)(768,712)(87,854)

4,560,568(5,279,494)(25,381)370(398,541)(81,181)(64,020)(1,034)(772,053)

1,367

600

(1,981)(22,836)-(46,783)285

65,732

907

692

1,287

SoftBank

Arm

Net sales

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

Total

Other

Reconciliations

Consolidated

Net sales
Customers
Intersegment

6,335,120
3,163

235,319
9,527(12,690)

6,570,439-

Total

6,338,283

244,846(12,690)

6,570,439

Segment income
Depreciation andamortization
Gain (loss) on(317,000)(75,258)(76,869)(469,127)(862,187)(31,301)-(893,488)(743,937)(48,283)(42,839)(835,059)(544,776)(15,666)

4,540(555,902)(772,067)

(203)

-

(772,270)(69,334)(12,060)(15,283)(96,677)

68,618(14,362)-

54,256

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

Note:* The details of the difference between “Gain (loss) on investments” in the SoftBank Vision Funds segment and “Gain (loss) on
investments at SoftBank Vision Funds” in the consolidated statement of profit or loss are described in “(1) Income and loss arisingfrom the SoftBank Vision Funds business” under “Note 4. SoftBank Vision Funds business.”

67SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2023

4. SoftBank Vision Funds business(1) Income and loss arising from the SoftBank Vision Funds businessa. Overview
Segment income arising from the SoftBank Vision Funds business (income before income tax) represents thenet profits of the SoftBank Vision Funds business, after deducting the net profits attributable to Third-Party
Investors. The net profits attributable to Third-Party Investors are the amount after deducting management
fees, performance-linked management fees, and performance fees, as applicable, that SBIA receives from
SVF1, and that SBGA receives from SVF2 and LatAm Funds.
The amount of the net profits attributable to Third-Party Investors that is deducted from the segment income
is presented as “Change in third-party interests in SVF1 and SVF2.”
b. Segment income arising from the SoftBank Vision Funds business
The components of segment income arising from the SoftBank Vision Funds business are as follows:(Millions of yen)
Fiscal year ended
March 31, 2022

Fiscal year ended
March 31, 2023

Loss on investments at SoftBank Vision Funds
Loss on investments at SVF1, SVF2, and LatAm
Funds
*2

Realized gain on investments
Unrealized loss on valuation of investments*3

Change in valuation for the fiscal year
Reclassified to realized gain recorded in the*4past fiscal years
Interest and dividend income from investments
Derivative gain (loss) on investments*5

Effect of foreign exchange translation
Subtotal

Gain on other investments
Total loss on investments at SoftBank Vision
Funds
Selling, general and administrative expenses
Finance cost (interest expenses)
Derivative gain (excluding gain (loss) on
investments)
Change in third-party interests in SVF*6

Other gain (loss)
Segment income arising from the SoftBank Vision
Funds business (income before income tax)

68

1,345,560

78,616(2,928,740)(4,978,591)(1,769,872)(288,679)

51,897(50,303)

1,512
14,537(84,962)(125,853)(3,436,420)
1,951(5,298,458)
18,964(3,434,469)(5,279,494)(94,456)(33,278)(65,999)(81,181)

2,056

907

970,559

1,127,949

36,561(10,473)(2,553,027)(4,308,291)

SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2023

Notes:
1. The Latin America Funds segment has been integrated into the SoftBank Vision Funds segment from the three-month period
ended June 30, 2022 since LatAm Funds has been managed by SBGA, which manages SVF2. Segment income arising fromthe SoftBank Vision Funds business for the fiscal year ended March 31, 2022 is presented based on the reportable segments
after the aforementioned change.
2. The amount of realized gain and loss on investments is the exit price net of the investment cost. In addition to the realized
gain and loss on sales by cash consideration, the realized gain and loss by share exchange are included.
3. For the fiscal year ended March 31, 2023, ¥84,962 million of the unrealized gain (net) on valuation arising from shares of theCompany’s subsidiaries held by SVF1 and SVF2 (mainly Arm and PayPay Corporation) is included in “Loss on investments
at SoftBank Vision Funds” (in Change in valuation for the fiscal year under Unrealized loss on valuation of investments) in
the above-mentioned segment income. However, the unrealized gain on valuation is eliminated in consolidation.
For the three-month period ended September 30, 2021, a wholly-owned subsidiary of the Company other than SVF1 wastransferred through sales from the Company to SVF2. As a result of the transaction, WeWork shares held by SVF2 include
common shares and the common shares are continuously accounted for using the equity method on a consolidation basis
after the transfer. For the fiscal year ended March 31, 2023, ¥38,116 million of the unrealized loss on valuation arising from
WeWork common shares held by SVF2 is included in “Loss on investments at SoftBank Vision Funds” (in Change invaluation for the fiscal year under Unrealized loss on valuation of investments) in the above-mentioned segment income.
However, the unrealized loss on valuation is eliminated in consolidation as WeWork is an equity method associate of theCompany.
The unrealized gain and loss on valuation, that are eliminated in consolidation, are not included in “Gain (loss) on
investments at SoftBank Vision Funds” in the consolidated statement of profit or loss.
4. It represents the unrealized gain and loss on valuation of investments recorded as “Gain (loss) on investments at SoftBank
Vision Funds” in the past fiscal years, which are reclassified to “Realized gain on investments” due to the realization for the
fiscal year ended March 31, 2023.
5. Unrealized gain and loss on valuation of investments are translated using the average exchange rate for the quarter in which
the gain and loss were recognized, while realized gain and loss on investments are translated using the average exchange rate
for the quarter in which the shares were disposed. “Effect of foreign exchange translation” is arising from the different
foreign currency exchange rates used for unrealized gain and loss on valuation and realized gain and loss.
6. SVF2 has provided credit support for $1.107 billion since December 2022 and additionally $0.47 billion since February 2023
for the credit facility for WeWork provided by financial institutions. The amount of credit facility outstanding was reduced to$1.43 billion as of March 31, 2023. For the fiscal year ended March 31, 2023, ¥37,780 million of provision for allowance forfinancial guarantee contract losses related to the credit support was recorded in the segment income arising from the
SoftBank Vision Funds business.

(2) Third-party interests in SVF
a. Terms and conditions of contribution from/ distribution to SVF Investors
Contributions by SVF Investors are classified as “Equity” and “Preferred Equity” depending on the terms andconditions of distribution. Preferred Equity is prioritized over Equity with regard to distribution and return ofcontribution.
Performance-based distributions attributed to SVF Investors, consisting of the Company and Third-Party
Investors, are calculated using the net proceeds from the investment performance, as applicable, of SVF1,
SVF2, and LatAm Funds. The net proceeds from SVF1 and LatAm Funds are also allocated to the69

SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2023

performance fees attributed to SBIA and SBGA, respectively, using the method specified in the limited
partnership agreement. The amount of performance-based distribution attributed to SVF Investors is allocatedto each of the SVF Investors based on the proportion of their respective Equity contribution. The amount of
performance-based distributions is paid to each of the SVF Investors after each of SVF1, SVF2, and LatAm
Funds, as applicable, receive cash through dividend, or disposition or monetization of investments.
In SVF1, fixed distributions are defined as distributions of Preferred Equity holders which are calculated
equal to a 7% rate per annum based on their contributions. The fixed distributions are made every lastbusiness day of the months of June and December. The details of the terms and conditions of the Equity
contributed by Third-Party Investor in SVF2 and LatAm Funds are described in “ Note 16. Related party
transactions regarding a co-investment program with restricted rights to receive distributions.” There are no
Third-Party Investors who contributed to Preferred Equity in SVF2 and LatAm Funds.
In the following table, Third-Party Investors contributing Equity are defined as “Investors entitled toperformance-based distribution” and Third-Party Investors contributing Preferred Equity are defined as“Investors entitled to fixed distribution.”b. Changes in interests attributable to Third-Party Investors(a) Third-party interests in SVF1
Changes in interests attributable to Third-Party Investors in SVF1 (included in “Third-party interests in SVF”
in the consolidated statement of financial position) are as follows:(Millions of yen)(For reference purposes only)
Links with the consolidated financial
statements
Consolidated
Consolidated
Third-party interests instatement
statement of cash
SVF1of profit or loss
flows
(Total of current liabilities (Negative figures (Negative figures
represent
represent
and non-current liabilities)
expenses)
payments)(Breakdown)
As of April 1, 2022
5,289,754
Contributions from third-party
17,857
17,857
investors
Changes in third-party interests(777,315)
777,315
Attributable to investors entitled to167,430
fixed distribution
Attributable to investors entitled to(944,745)
performance-based distribution
Distribution/repayment to third-party(544,242)(544,242)
investors
Exchange differences on translating
484,663*
third-party interests
As of March 31, 2023
4,470,717
Note:* Exchange differences were included in “Exchange differences on translating foreign operations” in the consolidated
statement of comprehensive income.

70SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2023

(b) Third-party interests in SVF2 and receivables
Changes in interests attributable to Third-Party Investor in SVF2 (included in “Third-party interests in SVF”
in the consolidated statement of financial position) are as follows: Third-party Investor in SVF2 is theinvestor entitled to performance-based distribution.

Third-party interests in
SVF2(Total of current liabilities
and non-current liabilities)
As of April 1, 2022
Changes in third-party interests
Exchange differences on translating*
third-party interests
As of March 31, 2023

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

270,081(291,332)

291,332-

21,251

-

-

-

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

The Company has receivables from Third-party Investor in SVF2. The changes in the receivables from ThirdParty Investor in SVF2 (included in “Other financial assets (non-current)” in the consolidated statement offinancial position) are as follows: The details of the receivables from Third-Party Investor in SVF2 aredescribed in “(1) Transactions between SVF2 and related parties” under “Note 16. Related party transactions
regarding a co-investment program with restricted rights to receive distributions.”

As of April 1, 2022
Increase in receivables from accrued premiums charged to third-party
investor
Exchange differences on receivables
As of March 31, 2023

71

(Millions of yen)
Receivables from third-party
investor in SVF2
342,663
11,18531,022384,870

SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2023

(c) Third-party interests in LatAm Funds and receivables
Changes in interests attributable to Third-Party Investor in LatAm Funds (included in “Third-party interests in
SVF” in the consolidated statement of financial position) are as follows: Third-party Investor in LatAm Funds
is the investor entitled to performance-based distribution.

Third-party interests in
LatAm Funds(Total of current liabilities
and non-current liabilities)
As of April 1, 2022
Changes in third-party interests
Exchange differences on translating*
third-party interests
As of March 31, 2023

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

80,663(59,302)59,302

-

7,291

-

-

28,652Note:* Exchange differences were included in “Exchange differences on translating foreign operations” in the consolidated
statement of comprehensive income.

The Company has receivables from Third-party Investor in LatAm Funds. The changes in the receivablesfrom Third-Party Investor in LatAm Funds (included in “Other financial assets (non-current)” in the
consolidated statement of financial position) are as follows: The details of the receivables from Third-Party
Investor in LatAm Funds are described in “(2) Transactions between LatAm Funds and related parties” under“Note 16. Related party transactions regarding a co-investment program with restricted rights to receive
distributions.”

As of April 1, 2022
Increase in receivables from accrued premiums charged to third-party
investor
Exchange differences on receivables
As of March 31, 2023

(Millions of yen)
Receivables from third-party
investor in LatAm Funds
80,663
2,641
7,302
90,606c. Uncalled committed capital from Third-Party Investors
Uncalled committed capital from SVF1’s Third-Party Investors as of March 31, 2023 was $8.2 billion.

72

SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2023

(3) Management fees and performance fees
Terms and conditions of management fees, performance-linked management fees, and performance fees,
included in segment income from the SoftBank Vision Funds business, are as follows.
a. Management fees and performance fees in SVF1
Management fees to SBIA from SVF1 are, in accordance with the limited partnership agreement, calculated
by multiplying 1% per annum by Equity contributions used to fund investments and paid to SBIA by SVF1
quarterly. A clawback provision is attached to the management fees received, which is triggered under certain
conditions based on future investment performance.
Same as the performance-based distributions, the amount of the performance fees to SBIA from SVF1 iscalculated using the allocation method as specified in the limited partnership agreement. SBIA is entitled toreceive the performance fees when SVF1 receives cash through disposition, dividend and monetization of aninvestment.
From the inception of SVF1 to March 31, 2023, the cumulative amount of performance fees paid to SBIA
was $439 million. The performance fees received are subject to clawback provisions which are triggered
under certain conditions based on future investment performance. In April 2023, in accordance with theclawback provisions, the performance fee (net of tax) was distributed to the limited partners.
b. Management fees and performance-linked management fees in SVF2
Management fees to SBGA from SVF2 are, in accordance with the constitutional agreements, calculated bymultiplying 0.7% per annum by the acquisition cost of investments and paid to SBGA by SVF2 quarterly.
The amount of the performance-linked management fees to SBGA from SVF2 is determined, based on theinvestment performance for certain periods specified in the constitutional agreement, according to the agreed
principle. SBGA is entitled to receive the performance-linked management fees after certain periods for theinvestment performance measurement specified in the constitutional agreement provided that there areavailable cash proceeds through disposition, dividend and monetization of an investment in SVF2.
From the inception of SVF2 to March 31, 2023, no performance-linked management fees were paid to SBGA.
c. Management fees, performance-linked management fees and performance fees in LatAm Funds
Management fees to SBGA from LatAm Funds are, in accordance with the constitutional agreements,
calculated based on the acquisition cost of investments and paid to SBGA by LatAm Funds quarterly.
LatAm Funds introduced the performance-linked management fees in July 2022. The amount of theperformance-linked management fees to SBGA from LatAm Funds is determined, based on the investment
performance for certain periods specified in the constitutional agreement, according to the agreed principle.
SBGA is entitled to receive the performance-linked management fees after certain periods for the investment
performance measurement specified in the constitutional agreement provided that there are available cash
proceeds through disposition, dividend and monetization of investments in LatAm Funds.

73SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2023

Same as the performance-based distributions, the amount of the performance fees to SBGA from LatAm
Funds is calculated using the allocation method as specified in the constitutional agreements. SBGA isentitled to receive the performance fees when LatAm Funds receives cash through disposition, dividend andmonetization of an investment.
From the inception of LatAm Funds to March 31, 2023, neither performance fees nor performance-linked
management fees were paid to SBGA.

74

SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2023

5. Special purpose acquisition companies sponsored by the Company
A special purpose acquisition company (“SPAC”) is an investment vehicle formed for the purpose of effecting amerger, share exchange, asset acquisition, share purchase, reorganization or similar business combination with
one or more businesses that have not yet been identified at the time of the offering. Subsequent to its formation,
the SPAC executes an initial public offering and raises capital through contributions from public investors. The
SPAC then seeks to identify an unlisted company as a target company and completes a business combination
with the target company with necessary approvals. Although the SPAC becomes the legal surviving company,
substantially the target company, which is an unlisted company, becomes a publicly listed company through thebusiness combination. A SPAC may arrange committed equity financing in private placement with certain
investors in order to raise additional funds necessary for the business combination (“Private Investment in Public
Equity”).
In the event that the Company forms SPACs as a sponsor, the Company acquires shares and, if applicable,
warrants of SPACs as consideration for funds invested by the Company in SPACs. Since the Company has
control over the SPACs from inception until its merger with a target company, the SPACs are consolidated as
subsidiaries. Investments in SPACs by the Company as a sponsor are eliminated in consolidation.
The amount of ownership interests held by investors other than the Company as a sponsor (“Public Market
Investors”) includes proceeds received from Public Market Investors at the initial public offering and income
including interest earned on such proceeds. Shares issued by a SPAC at the initial public offering are subject toconditions that the SPAC will cease all operations and redeem all of the proceeds received from Public Market
Investors in the SPAC to them if the SPAC is unable to complete a merger within 24 months from the date of theinitial public offering. In addition, Public Market Investors retain an option to redeem part or all of the proceeds
received from them upon completion of the initial merger. When the condition is met or the option is exercised,
the relevant SPAC will be obligated to redeem them for cash.
The proceeds received from Public Market Investors can only be used for the initial merger and redemptions of
the proceeds to Public Market Investors. The proceeds received are held in a trust account until the completion of
the initial merger or redemption to Public Market Investors and are invested only in certain financial assets thatare highly liquid.
For the fiscal year ended March 31, 2021, the Company has formed, as a sponsor, SPACs. These SPACs haveraised funds through initial public offerings in the United States. For the fiscal year ended March 31, 2021, thetotal funds raised were $3,304 million.
For the fiscal year ended March 31, 2022, a SPAC sponsored by Fortress completed a merger with a target
company and that SPAC was excluded from the scope of consolidation due to loss of control.
For the fiscal year ended March 31, 2023, a SPAC sponsored by SB Investment Advisers (US) Inc.* completed amerger with a target company and that SPAC was excluded from the scope of consolidation due to loss ofcontrol.
Furthermore, for the fiscal year ended March 31, 2023, six SPACs sponsored by the Company ceased all
operations as those SPACs were unable to complete a merger. As a result, the proceeds received from PublicMarket Investors held in trust accounts were fully withdrawn for redemption to the Public Market Investors.

75

SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2023

Non-controlling interests subject to possible redemption are included in and presented as “Other financial
liabilities (current)” and classified as “financial liabilities measured at amortized cost” in the consolidated
statement of financial position.
The carrying amounts of non-controlling interests subject to possible redemption are as follows:
As ofMarch 31, 2022
Other financial liabilities (current)
Non-controlling interests subject to possible
redemption(Millions of yen)
As ofMarch 31, 2023-

307,144

The carrying amounts of the assets restricted on its use held in the trust accounts are as follows:
As ofMarch 31, 2022
Other financial assets (current)
Trust accounts in SPACs

326,062(Millions of yen)
As ofMarch 31, 2023-

Note:
* SB Investment Advisers (US) Inc. is a wholly-owned subsidiary of the Company and provides investment advice to SBIA.

76

SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2023

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

As of
March 31, 2022

March 31, 2023

Current
Short-term borrowings
Commercial paper*1,2Current portion of long-term borrowings
Current portion of corporate bonds
Current portion of financial liabilities relating to*3sale of shares by prepaid forward contracts
Current portion of installment payables
Total

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

900,502
283,001
2,955,480
653,237

2,352,539

336,730150

97

7,328,862

5,129,047

5,472,605
6,471,624

4,164,682
6,257,455

2,184,034

3,926,873

307

137

14,128,570

14,349,147

Non-current*2Long-term borrowings
Corporate bonds
Financial liabilities relating to sale of shares by*3

prepaid forward contracts
Installment payables
Total
Notes:

1. A wholly-owned subsidiary of the Company had made a borrowing by using Alibaba shares pledged as collateral. For the
fiscal year ended March 31, 2023, the wholly-owned subsidiary of the Company repaid all of its borrowing of $6.0 billion
before the maturity date and the collateral for Alibaba shares was released. The borrowings are recorded for ¥731,517 million
as “Current portion of long-term borrowings” and Alibaba shares pledged as collateral are recorded for ¥1,154,179 million as“Investments accounted for using the equity method” in the consolidated statement of financial position as of March 31, 2022.
2. The current portion of long-term borrowings and long-term borrowings as of March 31, 2023 include ¥5,526 million and¥547,156 million (as of March 31, 2022: ¥11,500 million of short-term borrowings, ¥120,447 million of current portion of
long-term borrowings, and ¥204,588 million of long-term borrowings) of borrowings in SVF1, respectively. The current
portion of long-term borrowings as of March 31, 2023 include ¥770,004 million (as of March 31, 2022: ¥13,183 million ofcurrent portion of long-term borrowings and ¥718,357 million of long-term borrowings) of borrowings in SVF2.
3. These are primarily financial liabilities relating to sale of shares by prepaid forward contracts using Alibaba shares. The
details are described in “(2) Transactions for sale of Alibaba shares by prepaid forward contracts.”(2) Transactions for sale of Alibaba shares by prepaid forward contracts
Wholly-owned subsidiaries of the Company entered into prepaid forward contracts with financial institutions
to procure funds using Alibaba shares, which are held by the subsidiaries.
In the prepaid forward contracts, the number of Alibaba shares settled by the prepaid forward contracts isfixed regardless of changes in market share price in the future in a forward contract or determined by reference77SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2023

to market price of the shares at the valuation dates prior to the settlement date. The latter type of contracts
include Floor contract that a floor is set for the price of shares settled and Collar contract that a cap and a floor
are set for the price of shares settled. A part of wholly-owned subsidiaries of the Company entering into
prepaid forward contracts with financial institutions to procure funds using Alibaba shares (“Entities for fundprocurement by using Alibaba shares”), in addition to the prepaid forward contracts, enter into the call spread(combination of long position of call option and short position of call option with different strike prices)
contracts in preparation for Alibaba shares price rise.
The aforementioned prepaid forward contracts are classified as hybrid financial instruments with embedded
derivatives. The Company accounts for the contracts by bifurcating the main contracts and embedded
derivatives, and the main contracts are recognized as financial liabilities relating to sale of shares by prepaid
forward contracts then measured at amortized cost while the embedded derivatives are measured at fair value.
Also, the call spread contracts are measured at fair value as well. In addition, for the derivative financial assets
and the derivative financial liabilities recognized from the prepaid forward contracts and the call spread
contracts, a tax effect is recognized. The ending balance of the derivative financial assets and the derivative
financial liabilities recognized from the prepaid forward contracts and the call spread contracts are describedin “Note 7. Financial Instruments.”
Entities for fund procurement by using Alibaba shares have the option to settle all of the prepaid forward
contracts by delivering cash, Alibaba shares, or a combination of cash and Alibaba shares. If Entities for fundprocurement by using Alibaba shares elect cash settlement, Entities for fund procurement by using Alibaba
shares will pay the cash equivalent to the fair value of the number of shares subject to the settlement, as
determined by reference to the market price of the shares.
Alibaba shares held by Entities for fund procurement by using Alibaba shares are pledged as collateral inaccordance with all of the prepaid forward contracts, and except for a certain contract, the Company granted
the right of use to the financial institutions with respect to such shares. However, the collateral can be releasedby cash settlement at the discretion of Entities for fund procurement by using Alibaba shares.
Entities for fund procurement by using Alibaba shares procured ¥1,353,700 million ($10.5 billion) in total byentering into forward contracts for the three-month period ended June 30, 2022, ¥1,089,793 million ($7.9
billion) in total by entering into forward contracts for the three-month period ended September 30, 2022,¥857,246 million ($6.1 billion) in total by entering into forward contracts for the three-month period ended
December 31, 2022, and ¥1,471,152 million ($11.0 billion) in total by entering into forward contracts for thethree-month period ended March 31, 2023.
In contrast, for the three-month period ended September 30, 2022, a part of prepaid forward contracts was
settled by Alibaba shares from August to September 2022 based on the board resolution in August 2022(“Physical settlement under the board resolution in August 2022”), and most of them were early termination.
As a result of the Physical settlement under the board resolution in August 2022, the Company lost significant
influence over Alibaba via voting rights and Alibaba ceased to be an equity method associate of the Company.
The details are described in “Notes 1” in “(1) Gain and loss on investments at Investment Business of Holding
Companies” under “Note 10. Gain on investments.” Consequently, ¥891,249 million of current portion offinancial liabilities relating to sale of shares by prepaid forward contracts, ¥2,930,540 million of financial
liabilities relating to sale of shares by prepaid forward contracts, ¥304,895 million of “Derivative financial
assets (current),” ¥478,934 million of “Derivative financial assets (non-current),” ¥13,376 million of78

SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2023

“Derivative financial liabilities (non-current),” and ¥2,609,895 million of Alibaba shares included in“Investments accounted for using the equity method” or “Investment securities,” which was recognized as aresult of the remeasurement, were derecognized from the consolidated statement of financial position as of thesettlement date.
Also, before the aforementioned settlement based on the board resolution in August 2022, for the three-month
period ended June 30, 2022 and the three-month period ended September 30, 2022, the settlement date ofcertain prepaid forward contracts arrived and they were settled by Alibaba shares. As a result, ¥741,568
million of current portion of financial liabilities relating to sale of shares by prepaid forward contracts,¥480,155 million of “Derivative financial assets (current),” and ¥152,653 million of Alibaba shares included
in “Investments accounted for using the equity method” were derecognized from the consolidated statement offinancial position as of the settlement date, and ¥132,157 million of “Gain on investments at Investment
Business of Holding Companies” was recorded in the consolidated statement of profit or loss.
Furthermore, for the three-month period ended December 31, 2022, the settlement date of certain prepaid
forward contracts arrived and they were settled by Alibaba shares. As a result, ¥974,790 million of current
portion of financial liabilities relating to sale of shares by prepaid forward contracts, ¥610,321 million of“Derivative financial assets (current),” and ¥364,469 million of Alibaba shares included in “Investment
securities” were derecognized from the consolidated statement of financial position as of the settlement date.
In addition to the above, entities for fund procurement by using Alibaba shares procured $4.1 billion in total
by entering into forward contracts for the period after April 1, 2023.
As of March 31, 2023, the Company set ¥4,141,336 million of Alibaba shares, which is recognized as“Investment securities” in the consolidated statement of financial position, as collateral for ¥336,730 millionof current portion of financial liabilities relating to sale of shares by prepaid forward contracts and ¥3,486,934
million of financial liabilities relating to sale of shares by prepaid forward contracts.

79SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2023

(3) Components of proceeds and repayment of short-term interest-bearing debt, net
The components of “Repayment of short-term interest-bearing debt, net” in the consolidated statement of cash
flows are as follows:(Millions of yen)
Fiscal year ended
March 31, 2022
Net (decrease) increase in short-term borrowings
Net increase (decrease) in commercial paper
Total

Fiscal year ended
March 31, 2023

(1,280,587)
106,800

58,429(131,800)(1,173,787)(73,371)(4) Components of proceeds from interest-bearing debt
The components of “Proceeds from interest-bearing debt” in the consolidated statement of cash flows are as
follows:(Millions of yen)
Fiscal year ended
March 31, 2022
Proceeds from borrowings
Proceeds from issuance of corporate bonds
Proceeds from procurement by prepaid forward
contracts using shares
Total

*

Fiscal year ended
March 31, 2023

8,144,423
2,580,245

3,778,352
565,000

2,156,317

4,832,760

12,880,985

9,176,112

Note:* The amount was primarily procured under the prepaid forward contracts using Alibaba shares. The details of prepaid forward
contracts using Alibaba shares are described in “(2) Transactions for sale of Alibaba shares by prepaid forward contracts.”(5) Components of repayment of interest-bearing debt
The components of “Repayment of interest-bearing debt” in the consolidated statement of cash flows are as
follows:(Millions of yen)
Fiscal year ended
March 31, 2022
Repayment of borrowings
Redemption of corporate bonds
Repayment of settlement of prepaid forward
contracts using shares
Total

80

Fiscal year ended
March 31, 2023

(7,209,092)(1,267,059)(5,534,321)(755,911)(321,537)(4,759)(8,797,688)(6,294,991)

SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2023

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

As ofMarch 31, 2023

Carrying amount(fair value)

Carrying amount(fair value)

Assets
Prepaid forward contracts using Alibaba*1shares (Option contracts)
Call spread contracts relating to prepaid
forward contracts using Alibaba shares
Prepaid forward contracts using Alibaba*1shares (Forward contracts)
Contingent consideration relating to*2acquisition of T-Mobile shares
Short call option for T-Mobile shares to*3

Deutsche Telekom
Contingent value rights relating to sale of
T-Mobile shares*4*1

Liabilities

AssetsLiabilities

1,379,801-

397,127

-

2,302

-

590

-

190,334(67,672)-(805,039)

591,429-

833,770--(103,754)-(55,056)

44,681-

67,308-Notes:
1. The details of prepaid forward contracts using Alibaba shares and call spread contracts relating to prepaid forward contracts using
Alibaba shares are described in “(2) Transactions for sale of Alibaba shares by prepaid forward contracts” under “Note 6.
Interest-bearing debt.”
2. Acquired due to the merger transaction with Sprint and T-Mobile US, Inc. on April 1, 2020 and the Company has the right toacquire 48,751,557 shares of T-Mobile for no additional consideration if certain conditions are met. In addition, “T-Mobile”
indicates T-Mobile US, Inc. after merging with Sprint.
3. The decrease was primarily due to the partial exercise of the call options by Deutsche Telekom AG (“Deutsche Telekom”). The
details are described in “Notes 3” in “(1) Gain and loss on investments at Investment Business of Holding Companies” under“Note 10. Gain on investments.”
4. Contingent value rights were received in relation to the disposal of T-Mobile shares in a private placement through a trust.

81SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2023

8. Foreign currency exchange rates
Exchange rates of the major currencies used for translating financial statements of foreign operations are as
follows:(1) Rate at the end of the year
(Yen)
As of
March 31, 2022

As ofMarch 31, 2023

122.3919.26

133.53
-

USD
CNY

*

(2) Average rate for the quarter
For the fiscal year ended March 31, 2022
(Yen)

USD
CNY

Three-month period
endedJune 30, 2021

Three-month period
ended
September 30, 2021

Three-month period
ended
December 31, 2021

Three-month period
ended
March 31, 2022

110.0017.01

110.4717.09

113.6017.75

117.1018.43

For the fiscal year ended March 31, 2023
(Yen)

USD
CNY

*

Three-month period
endedJune 30, 2022

Three-month period
ended
September 30, 2022

Three-month period
ended
December 31, 2022

Three-month period
ended
March 31, 2023

129.04
19.60

138.6820.19

141.16-133.26-Note:* For the three-month period ended September 30, 2022, Alibaba ceased to be an equity method associate of the Company. As aresult, exchange rates of Chinese yuan are not presented from the three-month period ended December 31, 2022 since it is nolonger considered as a major currency used for translating financial statements of foreign operations.

82

SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2023

9. Equity(1) Other equity instruments
On July 19, 2017, the Company issued $2.75 billion of USD-denominated Undated Subordinated Non-Call 6
years Resettable Notes and $1.75 billion of USD-denominated Undated Subordinated Non-Call 10 years
Resettable Notes (collectively, the “Hybrid Notes”).
The Hybrid Notes are classified as equity instruments in accordance with IFRSs because the Company has theoption to defer interest payments, the notes have no maturity date, and the Company has an unconditional rightto avoid delivering cash or another financial asset except for distribution of residual assets on liquidation.
In addition, on October 12, 2022, the Company purchased a portion of the above USD-denominated Undated
Subordinated Non-Call 6 years Resettable Notes (the face value of $0.75 billion) and retired them on the samedate. The amount of ¥21,776 million reduced from “Retained earnings” as “Redemption and cancellation ofother equity instruments” in the consolidated statement of changes in equity is the difference between the issue
amount and the purchase amount, including foreign exchange effects.
(2) Treasury stock
Changes in treasury stock are as follows:(Thousands of shares)
Fiscal year ended
March 31, 2022
Balance at the beginning of the year
Increase during the year

Fiscal year ended
March 31, 2023

351,298

76,164*1

93,240185,702*2(368,374)(254,918)

76,164

6,948

Decrease during the year
Balance at the end of the year
Notes:

1. For the fiscal year ended March 31, 2023, due to purchases of treasury stock under the resolutions passed at the Board of
Directors meeting held on November 8, 2021 and August 8, 2022, the number of treasury stock increased by 185,701
thousand shares (the amount purchased is ¥1,055,426 million).
2. For the fiscal year ended March 31, 2023, the decrease was made mainly under the resolutions passed at the Board of
Directors meeting held on January 27, 2023. The Company retired its treasury stock of 252,959 thousand shares on March
30, 2023. As a result of the transaction, retaining earnings and treasury stock decreased by ¥1,412,374 million, respectively.

83SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2023

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

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

operations
Total

March 31, 2023

46,338298
1,696

43,201
142(71,598)

2,447,826

3,785,040

2,496,158

3,756,785

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

84

SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2023

10. Gain on investments(1) Gain and loss on investments at Investment Business of Holding Companies
The components of gain and loss on investments at Investment Business of Holding Companies are as follows:(Millions of yen)

Fiscal year ended
March 31, 2022
Gain relating to settlement of prepaid forward*1,2

contracts using Alibaba shares*3
Gain relating to sales of T-Mobile shares
Realized gain (loss) on investments at asset
management subsidiaries
Unrealized loss on valuation of investments at asset
management subsidiaries
Derivative gain (loss) on investments at asset
management subsidiaries*1,2

Realized gain (loss) on investments*2
Unrealized loss on valuation of investments*4
Derivative gain on investments
Other
Total

Fiscal year ended
March 31, 2023

199,972

4,838,251

3,149

24,84254,853(73,950)(393,404)(67,122)

89,476(5,102)

79,336(50,179)
101,524
19,640(237,980)(142,380)
205,506
18,435

104,367

4,560,500

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

85

SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2023

(loss) on valuation of investments” rather than “Gain relating to settlement of prepaid forward contracts using Alibaba
shares.” For the fiscal year ended March 31, 2023, ¥210,919 million of realized loss on investments and ¥254,356 million of
unrealized loss on valuation of investments were recognized related to the remaining Alibaba shares.
3. On April 12, 2022, Deutsche Telekom exercised options to purchase T-Mobile shares granted by the Company to Deutsche
Telekom and the Company sold 21,153,145 of T-Mobile shares held by a wholly-owned subsidiary of the Company toDeutsche Telekom. In connection with the exercise, the wholly-owned subsidiary of the Company received $2.40 billion as
consideration for the sale of T-Mobile shares. As a result, ¥24,842 million of gain relating to sales of T-Mobile shares wasrecorded for the fiscal year ended March 31, 2023.
Cumulative gains on T-Mobile shares and the options associated with the transaction are ¥22,528 million. Of this, ¥6,012
million of loss was recorded for the fiscal year ended March 31, 2021, and ¥3,698 million of gain was recorded for the fiscal
year ended March 31, 2022.
4. For the fiscal year ended March 31, 2023, ¥189,874 million of derivative gain on investments was recorded due to changes in
the fair value of contingent consideration related to the acquisition of T-Mobile shares through the merger transaction withSprint and T-Mobile US, Inc. The details of contingent consideration are described in “Notes 2” under “Note 7. Financial
instruments.”(2) Gain and loss on investments at SoftBank Vision Funds
The details of gain and loss on investments at SoftBank Vision Funds are described in “(1) Income and loss
arising from the SoftBank Vision Funds business” under “Note 4. SoftBank Vision Funds business.”

11. Finance cost
The components of finance cost are as follows:(Millions of yen)
Fiscal year ended
March 31, 2022*

(382,512)Interest expenses

Fiscal year ended
March 31, 2023
(555,902)

Note:* For the fiscal year ended March 31, 2023, the increase was mainly due to the full amortization of the unamortized costassociated with the financial liabilities related to the early settlement of prepaid forward contracts using Alibaba shares. The
details are described in “(2) Transactions for sale of Alibaba shares by prepaid forward contracts” under “Note 6. Interestbearing debt.”

86SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2023

12. Derivative gain (excluding gain (loss) on investments)
For the fiscal year ended March 31, 2023, derivative gain of ¥24,933 million was recorded for the prepaid
forward contracts using Alibaba shares and the call spread contracts relating to prepaid forward contracts using
Alibaba shares. The details of the contracts are described in “(2) Transactions for sale of Alibaba shares by
prepaid forward contracts” under “Note 6. Interest-bearing debt.” The above gain includes ¥790,145 million ofderivative gain recorded for the three-month period ended September 30, 2022 regarding the prepaid forward
contracts using Alibaba shares subject to the Physical settlement under the board resolution in August 2022. The
details of the physical settlement are described in “Notes 1” in “(1) Gain and loss on investments at Investment
Business of Holding Companies” under “Note 10. Gain on investments.”
13. Other gain (loss)
The components of other gain and loss are as follows:(Millions of yen)

Fiscal year ended
March 31, 2022
Interest income*1

Dilution gain from changes in equity interest*2

Gain on redemption of corporate bonds
Gain (loss) on liabilities for short put options over*3

non-controlling interests
Gain relating to loss of control over subsidiaries
Provision for allowance for financial guarantee*4

contract losses*5

Provision for allowance for doubtful accounts

Impairment loss on equity method investments
Provision for allowance for loan commitment

*6,7

*8

losses*9

Provision for loss relating to litigation
Gain relating to the agreement for sale of Arm shares
Reversal of impairment loss on equity method
investments
Other
Total

Fiscal year ended
March 31, 2023

35,047

114,368

71,741

84,799818

44,063(15,808)

40,310121,690

22,872-(142,226)(2,834)(110,409)(26,436)(67,162)-(20,444)-(19,176)

146,375-

35,706-27,00028,867393,299(24,138)

Notes:
1. Primarily, the amount is related to the dilution gain arising from changes in Alibaba’s equity interest held by the Company,
due to the exercise of stock options in Alibaba, before Alibaba ceased to be an equity method associate.
2. The amount is related to foreign-currency-denominated notes purchased by SoftBank Group Corp.
3. The Company recognizes short put options granted to owners of non-controlling interests in subsidiaries of the Company asfinancial liabilities at fair value through profit or loss. The amount primarily represents the valuation gain or loss due to thefluctuation of fair value in the financial liabilities related to Fortress.
4. ¥142,226 million of provision for allowance for financial guarantee contract losses related to a credit facility for WeWork
provided by financial institutions was recorded mainly due to an increase in the credit spread for WeWork’s unsecured notes

87SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2023

distributed in the market from March 31 2022. Previously, SoftBank Group Corp. provided the credit support for the credit
facility for WeWork provided by financial institutions. SVF2 has provided credit support for $1.107 billion since December
2022 and additionally $0.47 billion since February 2023 for the credit facility for WeWork provided by financial institutions.
The amount of credit facility outstanding was reduced to $1.43 billion as of March 31, 2023.
5. For the fiscal year ended March 31, 2023, ¥77,191 million of provision for allowance for doubtful accounts related to
unsecured notes issued by WeWork (as of March 31, 2023: the face vale of $1.65 billion) was recorded as the expected credit
losses were higher than the amount recorded as of March 31, 2022 due to an increase in the credit spread for WeWork’s
unsecured notes distributed in the market.
In April 2023, the unsecured notes were transferred to SVF2 at fair market value and, in May, were exchanged into shares andconvertible bonds newly issued by WeWork.
6. For the fiscal year ended March 31, 2023, ¥31,304 million of impairment loss was recorded as the carrying amount of equity
method investments in DEMAE-CAN CO., LTD. was reduced to the recoverable amount.
7. For the fiscal year ended March 31, 2023, ¥22,809 million of impairment loss was recorded as the fair value of WeWorkcommon shares accounted for using the equity method decreased.
8. ¥20,444 million of provision for allowance for loan commitment losses related to acquiring senior secured notes up to $0.5
billion to be issued by WeWork was recorded. SVF2 became a party to the loan commitment contract related to acquiring thenotes instead of the Company’s wholly-owned subsidiary other than SVF, effective from December 2022. In January 2023,
SVF2 purchased $0.25 billion of senior secured notes.
In April 2023, SVF2 purchased additional $0.05 billion of senior secured notes. In May, the purchased $0.3 billion of seniorsecured notes were redeemed by WeWork and the remaining $0.2 billion of unfunded loan commitment for the seniorsecured notes was canceled. In addition, SVF2 newly entered into the loan commitment contract with WeWork whereby
SVF2 is obliged to purchase up to $0.3 billion in the notes to be issued by WeWork.
9. The amount was recorded based on the ruling of the Tokyo District Court delivered on September 9, 2022, related tolitigation in which SoftBank Corp. was involved as a party, associated with a project to migrate the communications network
connecting 27,000 sites (postal offices, etc.) countrywide to a new network, the 5th PNET. In addition, the case was appealed
to the Tokyo High Court on September 22, 2022.

88SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2023

14. Earnings per share
Basic earnings per share and diluted earnings per share are as follows:(1) Basic earnings per share

Net income attributable to ordinary shareholders of the parent(Millions of yen)
Net income attributable to owners of the parent
Net income not-attributable to ordinary shareholders of the*1parent
Net income used in the calculation of basic earnings per share
Weighted-average number of ordinary shares (Thousands ofshares)Basic earnings per share (Yen)

Fiscal year ended
March 31, 2022

Fiscal year ended
March 31, 2023

(1,708,029)(970,144)(32,709)(36,113)(1,740,738)(1,006,257)

1,708,989

1,542,474(1,018.58)(652.37)

Fiscal year ended
March 31, 2022

Fiscal year ended
March 31, 2023

(1,740,738)(1,006,257)(12,127)(15,500)(1,752,865)(1,021,757)

1,708,989

1,542,474--

1,708,989

1,542,474(1,025.67)(662.41)(2) Diluted earnings per share

Diluted net income attributable to ordinary shareholders of theparent (Millions of yen)
Net income used in the calculation of basic earnings per
share
Effect of dilutive securities issued by subsidiaries andassociates
Total
Weighted-average number of ordinary shares used in thecalculation of diluted earnings per share (Thousands ofshares)
Weighted-average number of ordinary shares
Adjustments:
Stock acquisition rights
Total

*2

Diluted earnings per share (Yen)

Notes:
1. Net income not-attributable to ordinary shareholders of the parent represents net income attributable to owners of other equity
instruments.
2. For the fiscal year ended March 31, 2023 and for the fiscal year ended March 31, 2022, stock acquisition rights are notincluded in the calculation for “Diluted earnings per share” as it has an antidilutive effect for the calculation.

89

SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2023

15. Supplemental information to the consolidated statement of cash flows(1) Income taxes paid and income taxes refunded
For the fiscal year ended March 31, 2023
Payment of withholding income tax related to dividends within the group companies of ¥109,330 million is
included in “Income taxes paid.” In addition, refunded withholding income tax related to dividends within thegroup companies of ¥92,895 million is included in “Income taxes refunded.”(2) Proceeds from sales/redemption of investments
For the fiscal year ended March 31, 2023
Proceeds of ¥309,696 million received from sales of T-Mobile shares are included in “Proceeds fromsales/redemption of investments.”(3) Proceeds from withdrawal of trust accounts in SPACs
For the fiscal year ended March 31, 2023
“Proceeds from withdrawal of trust accounts in SPACs” is proceeds from withdrawal of proceeds, received
from investors other than the Company as a sponsor (“Public Market Investors”) and held in trust accounts, ina SPAC sponsored by the Company. The proceeds were withdrawn for redemption to the Public Market
Investors when the SPACs ceased all operations. The details are described in “Note 5. Special purpose
acquisition companies sponsored by the Company.”(4) Redemption of non-controlling interests subject to possible redemption
For the fiscal year ended March 31, 2023
“Redemption of non-controlling interests subject to possible redemption” is repayment of all the proceeds to
the Public Market Investors of the SPACs. The repayment was required because the SPACs sponsored by theCompany were unable to complete a merger within 24 months from the date of the initial public offering andceased all operations. The details are described in “Note 5. Special purpose acquisition companies sponsoredby the Company.”(5) Significant non-cash transactions
For the fiscal year ended March 31, 2023
Based on the board resolution in August 2022 or the settlement date of a part of prepaid forward contracts
arrived, ¥5,538,147 million of financial liabilities relating to sale of shares by prepaid forward contracts,¥1,874,305 million of derivative financial assets, and ¥13,376 million of derivative financial liabilities, weresettled by Alibaba shares. The details are described in “(2) Transactions for sale of Alibaba shares by prepaid
forward contracts” under “Note 6. Interest-bearing debt.”

90SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2023

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

91

SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2023

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

Masayoshi Son(MASA USA
LLC (MgmtCo))

Nature ofrelationship

Chairman &CEO of SoftBank
Group Corp. andrelated entities ofwhich he holds
more than onehalf of the voting
rightsNature of transaction(Millions of yen)
As ofMarch 31, 2023
Balance atperiod end

Fiscal year ended
March 31, 2023
Amount oftransaction

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

The premium received
on SVF2 LLC’s
receivables

11,185($83 million)*3,4

MgmtCo’s Equity*5,6
interests in SVF2 LLC

Net balance at period end(Receivables in SVF2 LLC less*7
MgmtCo’s Equity interests in SVF2 LLC)

384,870($2,882 million)

*3

-

-

384,870($2,882 million)

Notes:
1. Restrictions on rights to receive distributions to MgmtCo
MgmtCo’s right to receive distributions from its investment is subject to certain restrictions. Distributions from SVF2 LLC to
MgmtCo are fully restricted and are not paid until the sum of proceeds received by SVF2 LLC from realized investments plus
the aggregate fair value of all of SVF2 LLC’s unrealized investments (net of borrowings) exceeds 130% of the aggregateacquisition cost of all of SVF2 LLC’s investments. After the ratio exceeds 130%, restrictions on distributions to MgmtCo arereleased proportionately in increments of 10%, and when the ratio reaches 200%, all restrictions are released and MgmtCo isentitled to receive the full amount of the distribution. In the event that, upon the liquidation of SVF2 LLC, the amount of the
distributions received by MgmtCo exceeds the amount that would have been distributed to MgmtCo if the ratio in effect at thetime of liquidation was applied throughout the life of SVF2 LLC, then any such excess amounts will be subject to clawbackfrom MgmtCo.
2. Nature of the Equity contribution by MgmtCo
The Equity interests contributed by the Company and MgmtCo are subordinated to the Preferred Equity contributed separatelyby the Company to SVF2 LLC. If there is a shortfall in the amount of return of Preferred Equity contributions and the amount of
fixed distributions to be received by the Preferred Equity holders at the time of the final profit distribution by SVF2 LLC, then
MgmtCo is obligated to pay the shortfall proportional to Equity interests’ ratio up to the total amount of return of Equity
contributions and the distributions received by MgmtCo.
3. Balance at period end of receivables from MgmtCo for receipt of capital contribution and related adjustments
Balance at period end is the balance of SVF2 LLC’s receivables consist of the balance related to receipt of capital contribution,
related adjustments and premiums received from MgmtCo, less any decrease in receivables due to offsetting settlement with
distributions to MgmtCo.
The amount of the transaction for “Receipt of capital contribution in SVF2 LLC and related adjustments” is MgmtCo’s Equity
Acquisition Amount in SVF2 LLC at the inception of the program, which consists of the amount calculated based on MgmtCo’s
Equity interests of 17.25% in the SVF2’s initial acquisition costs of the relevant portfolio companies held by SVF2 LLC and92

SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2023

related adjustments calculated based on 17.25% interest in the increase in the portfolio companies’ fair value from the initialacquisition costs at SVF2 to June 30, 2021, and the adjustment equivalent to interests for the period from the Company’scontribution to SVF2 until June 30, 2021.
MgmtCo is entitled to make full or partial payment of its Equity Acquisition Amount at any point in time at its discretion fromthe date it became an investor in SVF2 LLC to the end of the company life of SVF2 LLC. MgmtCo is required to pay a premiumof 3% per annum on the unpaid Equity Acquisition Amount until the unpaid amount is paid in full. “The premium received on
SVF2 LLC’s receivables” refers to the amount of such premium accrued in the current period. MgmtCo is also entitled to makefull or partial payment of the premium at any point in time, at its discretion on the same terms and conditions as Equity
Acquisition Amount.
Any distributable amount from SVF2 LLC to MgmtCo is offset against the receivables at the time of the distribution notice andno distribution payments to MgmtCo are made until the SVF2 LLC’s receivables are paid in full.
4. Collateral and other credit protection for receivables
In order to secure the receivables of SVF2 LLC related to Equity Acquisition Amount and the premium thereon, all of the Equity
interests in SVF2 LLC held by MgmtCo were pledged as collateral. In the event that MgmtCo pays into the receivables or offsets
such receivables with distributions due to it from SVF2 LLC, the collateral is released to the extent that the cumulative amountsof payments and offsets exceeds the balance of the receivables after deduction of such cumulative amounts. Masayoshi Son also
provides a personal guarantee to the receivables up to the balance of the receivables. In addition, as of March 31, 2023,
8,897,100 shares of SoftBank Group Corp. are deposited in SVF2 LLC by Masayoshi Son. The deposited shares of SoftBank
Group Corp. will be released only where the entire amount of receivables is settled. SVF2 LLC may acquire the deposited
SoftBank Group Corp. shares without consideration where there are any unpaid receivables in SVF2 LLC after the enforcementof the collateral and personal guarantees by SVF2 LLC.
5. MgmtCo’s Equity interest in SVF2 LLC
The amount represents SVF2 LLC’s net assets attributable to MgmtCo (before deduction of receivables), which is included in“Third-party interests in SVF” in the consolidated statement of financial position.
6. Management fee and performance-linked management fees to be charged to MgmtCo
The terms of the management fee and performance-linked management fee to be charged to MgmtCo are the same as those to be
charged to the Company as an Equity investor in SVF2 LLC.
7. Net balance at period end
Net balance at period end is the balance of receivables held by SVF2 LLC less MgmtCo’s Equity interest in SVF2 LLC.

93

SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2023

(2) Transactions between LatAm Funds and related parties

Name of thecompany orindividual

Masayoshi Son(MASA USA
LLC (MgmtCo))

Nature ofrelationship

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

Fiscal year ended
March 31, 2023
Amount oftransaction

Receipt of capital
contribution in SLA
LLC and related*1, 2
adjustments
The premium received
on SLA LLC’s
receivables
MgmtCo’s Equity
interests in SLA
*5,6
LLC

(Millions of yen)
As ofMarch 31, 2023
Balance atperiod end*3,4-

90,606($678 million)

*3

2,641
($19 million)

Net balance at period end(Receivables in SLA LLC less*7
MgmtCo’s Equity interests in SLA LLC)-

28,652($215 million)

61,954($463 million)

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

94SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2023

MgmtCo is entitled to make full or partial payment of its Equity Acquisition Amount at any point in time at its discretion fromthe date it became an investor in SLA LLC to the end of the company life of SLA LLC. MgmtCo is required to pay a premiumof 3% per annum on the unpaid Equity Acquisition Amount until the unpaid amount is paid in full. “The premium received on
SLA LLC’s receivables” refers to the amount of such premium accrued in the current period. MgmtCo is also entitled to makefull or partial payment of the premium at any point in time, at its discretion on the same terms and conditions as Equity
Acquisition Amount.
Any distributable amounts from SLA LLC to MgmtCo are offset against the receivables at the time of the distribution notice andno distribution payments to MgmtCo are made until the SLA LLC’s receivables are paid in full.
4. Collateral and other credit protection for receivables
In order to secure the receivables of SLA LLC related to Equity Acquisition Amount and the premium thereon, all of the Equity
interests in SLA LLC held by MgmtCo were pledged as collateral. In the event that MgmtCo pays into the receivables or offsets
such receivables with distributions due to it from SLA LLC, the collateral is released to the extent that the cumulative amountsof payments and offsets exceeds the balance of the receivables after deduction of such cumulative amounts. Masayoshi Son also
provides a personal guarantee to the receivables up to the balance of the receivables. In addition, as of March 31, 2023,
2,168,500 shares of SoftBank Group Corp. are deposited in SLA LLC by Masayoshi Son. The deposited shares of SoftBank
Group Corp. will be released only where the entire amount of receivables is settled. SLA LLC may acquire the deposited
SoftBank Group Corp. shares without consideration where there are any unpaid receivables in SLA LLC after the enforcementof the collateral and personal guarantees by SLA LLC.
5. MgmtCo’s Equity interest in SLA LLC
The amount represents SLA LLC’s net assets attributable to MgmtCo (before deduction of receivables), which is included in“Third-party interests in SVF” in the consolidated statement of financial position.
6. Management fee, performance-linked management fees and performance fees to be charged to MgmtCo
The terms of the management fee, performance-linked management fees and performance fee to be charged to MgmtCo are thesame as those to be charged to the Company as an Equity investor in SLA LLC.
7. Net balance at period end
Net balance at period end is the balance of receivables held by SLA LLC less MgmtCo’s Equity interest in SLA LLC.

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