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

SoftBank Group Corp.
Consolidated Financial Report
For the Nine-Month Period Ended December 31, 2021 (IFRS)Tokyo, February 8, 2022

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

Nine-month period ended
December 31, 2021
Nine-month period ended
December 31, 2020

Nine-month period ended
December 31, 2021
Nine-month period ended
December 31, 2020

Incomebefore income tax

Net income
Amount%

Net income
attributable toowners of the parent

Amount%Amount¥4,580,840

10.7¥1,234,724 (63.3)¥649,294 (79.0)¥392,617 (87.1)¥1,591,055 (37.4)¥4,138,038

6.1¥3,361,504 133.0¥3,096,695 371.7¥3,055,162 541.1¥2,543,236 398.1

Basic earnings per
share (Yen)

Diluted earnings per
share (Yen)¥214.73¥207.57¥1,572.09¥1,476.17%

Amount%Total
comprehensive
incomeAmount%Note:* Net sales and income before income tax are presented based on the amounts from continuing operations only.

(2) Financial Position
Total assets

Total equity

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

As of December 31, 2021

¥48,242,890¥12,846,067¥11,114,707

23.0

As of March 31, 2021

¥45,750,453¥11,955,593¥10,213,093

22.3

2.

Dividends
Dividends per shareFirst quarter
Fiscal year ended
March 31, 2021
Fiscal year ending
March 31, 2022

Second quarter

Third quarter

Fourth quarter

Total

(Yen)

(Yen)

(Yen)

(Yen)

(Yen)

-

22.00

-

22.00

44.00

-

22.00

22.00

44.00

Fiscal year ending
March 31, 2022 (Forecasted)

Note:* Revision of the latest forecasts on the dividends: No* 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: Boston Dynamics, Inc.
Notes:
1. Please refer to page 49 “(1) Significant Changes in Scope of Consolidation for the Nine-Month Period Ended December 31,
2021” under “2. 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 thecorresponding laws and practices is used to determine the applicability of Cabinet Office Ordinance on Disclosure of Corporate
Affairs, etc. Article 19, Paragraph (10), Item (ii).
(2) Changes in accounting policies and accounting estimates[1] Changes in accounting policies required by IFRSs: No[2] Changes in accounting policies other than those in [1]: No[3] Changes in accounting estimates: Yes
Please refer to page 49 “(2) Changes in Accounting Estimates” under “2. Notes to Summary Information” for details.

(3) Number of shares issued (common stock)[1] Number of shares issued (including treasury stock):
As of December 31, 2021:
As of March 31, 2021:[2]

Number of shares of treasury stock:
As of December 31, 2021:
As of March 31, 2021:[3]

1,722,953,730 shares
2,089,814,330 shares
21,032,966 shares351,297,587 shares

Number of average shares outstanding during nine-month period (April-December):
As of December 31, 2021:

1,716,056,144 shares

As of December 31, 2020:

1,929,114,012 shares* This condensed interim consolidated financial report is not subject to interim review procedures by certified public
accountants or an audit firm.
* Note to forecasts on the consolidated results of operations and other items
Descriptions regarding the future are estimated based on the information that the Company is able to obtain at the present point intime and assumptions which are deemed to be reasonable. However, actual results may be different due to various factors.
On February 8, 2022 (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/presentations. 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 Nine-Month Period Ended December 31, 2021

(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 ....................................................................................................................................
(e) Latin America Funds Segment .........................................................................................................
(f) Other .................................................................................................................................................
(2) Overview of Financial Position ................................................................................................................
(3) Overview of Cash Flows ..........................................................................................................................
(4) Forecasts ...................................................................................................................................................

P.3
P.3
P.4
P.7
P.8
P.14
P.25
P.26
P.30
P.32
P.33
P.43
P.47

2. Notes to Summary Information ...................................................................................................................... P.49
(1) Significant Changes in Scope of Consolidation for the Nine-Month Period Ended December 31, 2021 P.49
(2) Changes in Accounting Estimates ............................................................................................................ P.49
3. Condensed Interim Consolidated Financial Statements and Primary Notes .................................................
(1) Condensed Interim Consolidated Statement of Financial Position ..........................................................
(2) Condensed Interim Consolidated Statement of Income
and Condensed Interim Consolidated Statement of Comprehensive Income ..........................................
(3) Condensed Interim Consolidated Statement of Changes in Equity .........................................................
(4) Condensed Interim Consolidated Statement of Cash Flows ....................................................................
(5) Significant Doubt about Going Concern Assumption ..............................................................................
(6) Notes to Condensed Interim Consolidated Financial Statements ............................................................

P.50
P.52
P.54
P.58
P.62
P.64
P.64

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 SBG including SB Global Advisers Limited, SB Investment Advisers (UK)
Limited, SBLA Advisers Corp. or their respective affiliates, or any securities in any jurisdiction, nor should it be relied upon as suchin any way.
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. For the fiscal year ended March 31, 2021, we believe that SBG and certain subsidiaries of SBG were PFICs. We
recommend that U.S. holders of SBG’s shares consult their tax advisors with respect to the U.S. federal income tax consequences tothem if SBG and its subsidiaries are classified as PFICs. SBG is not responsible for any tax treatments or consequences thereof withrespect to U.S. holders of SBG’s shares.

1

SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 2021

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
SB Northstar LP
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. and its alternative investment vehicles
SVF2 LLC
SVF II Investment Holdings LLC
SBIA
SB Investment Advisers (UK) Limited
SBIA USSB Investment Advisers (US) Inc.
SBGASB Global Advisers Limited
SoftBank Latin America Fund 1 or SBLA Holdings (Cayman) L.P. and SBLA Latin America Fund (Cayman)*1
SBLAF1
L.P.
SoftBank Latin America Fund 2 or SBLA Holdings II DE LLC and SLA Holdco I LLC*1
SBLAF2
Arm
Arm Limited
Alibaba
Alibaba Group Holding Limited
MgmtCoMASA USA LLC
The first quarter
Three-month period ended June 30, 2021
The second quarter
Three-month period ended September 30, 2021
The third quarter
Three-month period ended December 31, 2021
The period
Nine-month period ended December 31, 2021
The third quarter-end
December 31, 2021
The fiscal year
Fiscal year ending March 31, 2022
The previous fiscal year
Fiscal year ended March 31, 2021
The previous fiscal year-end
March 31, 2021
Note:
1. SoftBank Latin America Fund 1 and SoftBank Latin America Fund 2 are collectively referred to as SoftBank Latin America Funds.

Exchange Rates Used for Translations

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

Fiscal year ended March 31, 2021
Q1
Q2
Q3
Q4
¥107.74¥105.88¥104.45¥106.24¥110.71Q1¥110.00

Fiscal year ending
March 31, 2022
Q2
Q3¥110.47¥113.60¥115.02

CHANGES IN PRESENTATION OF CONSOLIDATED STATEMENT OF INCOME AND REPORTABLE
SEGMENTS
Establishment of the Latin America Funds Segment

Latin America Funds, which were previously included within “Other,” are newly presented as an independent
reportable segment from the first quarter in light of their greater financial importance. In line with this, gains andlosses on investments at Latin America Funds, which were previously included in “gain (loss) on other investments”
in the Consolidated Statement of Income, are newly presented as an independent item. Information for the same
period of the previous fiscal year has been reclassified and presented accordingly. See “OVERVIEW” under “(e)Latin America Funds Segment” in “b. Results by Segment” in “(1) Overview of Results of Operations” in “1.
Results of Operations”.
2SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 2021

1. Results of Operations(1) Overview of Results of Operations
1. Highlights of results◆ Loss on investments of ¥551.8 billion- ¥16.0 billion investment gain at Investment Business of Holding Companies: Gain related to settlement of
prepaid forward contracts using Alibaba shares of ¥68.1 billion was recorded, along with realized andunrealized gains totaling ¥103.4 billion (net) on a number of other investments. Unrealized valuation losses
totaling ¥121.2 billion on T-Mobile and Deutsche Telekom shares, and loss of ¥47.1 billion on investments inlisted stocks and other instruments were recorded.
- ¥767.7 billion investment loss at SVF1, SVF2, and others· SVF1: Realized gain (net) of ¥1,016.7 billion, of which ¥1,052.1 billion (net) had been recorded as
unrealized gain on investments in past fiscal years, was recorded mainly due to partial exits of listed
portfolio companies. Unrealized gain on valuation (net) totaled ¥1,154.3 billion for unlisted portfolio
companies while unrealized loss on valuation (net) totaled ¥1,967.6 billion for listed portfolio companies,
mainly due to a loss of ¥1,123.4 billion for Coupang and ¥630.2 billion for DiDi.
· SVF2: Recorded realized gain of ¥111.0 billion, of which ¥146.9 billion (net) had been recorded as
unrealized gain on investments in past fiscal years, and unrealized gain on valuation (net) of ¥106.5 billion.
- ¥136.7 billion investment gain at Latin America Funds: Unrealized gain on valuation (net) was recorded due
to an increase in the fair value of investments.
◆ Income before income tax of ¥1,234.7 billion (decrease of ¥2,126.8 billion yoy)

Recorded finance cost of ¥282.8 billion and derivative gain (excluding gain (loss) on investments) of¥1,104.2 billion, which was mainly related to prepaid forward contracts using Alibaba shares.

◆ Net income attributable to owners of the parent of ¥392.6 billion (decrease of ¥2,662.5 billion yoy)

Net income from discontinued operations of ¥711.5 billion was recorded in the same period of the previous
fiscal year, primarily reflecting a gain related to loss of control of Sprint.

2. Status of investment activities◆ SVF1: Further progress with public listings and monetization of investments- Investments: Made investments totaling $2.9 billion in the period.
*1- Portfolio: Held 83 investments (including 22 listed portfolio companies) as of the third quarter-end. 11
companies were newly listed in the period.
- Monetization: SVF1 distributed proceeds mainly from the partial sale and monetization of investments, ofwhich the Company received $6.1 billion.
◆ SVF2: Steady progress in new investments- Investments: SVF2 made new and follow-on investments totaling $36.3 billion in the period, bringing thefund’s total cost to $42.6 billion.
*2- Portfolio: Held 208 investments (including 13 listed portfolio companies) as of the third quarter-end. 10
companies were newly listed in the period.
- Monetization: SVF2 distributed proceeds mainly from the partial sale and monetization of investments, ofwhich the Company received $7.0 billion.
◆ SoftBank Latin America Funds
The funds invested $3.4 billion in the period, including new investments in 48 companies. As of the third*3
quarter-end, the funds collectively held 84 investments.
3. Procured funds in an agile manner to meet funding needs for debt repayment and new investments
1
while managing SBG’s LTV below 25%- SBG issued domestic hybrid bonds of ¥405.0 billion, domestic subordinated bonds of ¥500.0 billion, andforeign currency-denominated straight bonds of $3.85 billion and €2.95 billion, getting on the right track torefinancing its bonds maturing in the fiscal year. SBG redeemed domestic hybrid bonds of ¥455.6 billion in
September 2021 and domestic subordinated bonds of ¥361.6 billion in December 2021.
- $9.04 billion (net) was raised through prepaid forward contracts using Alibaba shares, through the executionof new contracts and the rolling over and early termination of existing contracts.
- Of the margin loans using Alibaba shares, $10.0 billion was repaid while $6.0 billion was newly borrowed in
December 2021.
Note:
1. Includes two investments accounted for as subsidiaries of the Company.
2. Includes one investment accounted for as a subsidiary of the Company.
3. Includes one investment accounted for as a subsidiary of the Company.

3SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 2021

a. Consolidated Results of Operations(Millions of yen)
Nine months ended December 31
2020
2021
Continuing operations
Net sales
Gross profit
Gain on investments

ChangeChange %4,138,038
2,168,300

4,580,840
2,476,969

442,802308,669

10.7%
14.2%

A

Gain on investments at Investment
Business of Holding Companies

846,477

15,954(830,523)(98.1%) B

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

2,728,778(767,736)(3,496,514)-

Gain on investments at Latin America
Funds
Gain on other investments
Total gain (loss) on investments

124,933
99,2683,799,456

136,734
63,280(551,768)

11,801(35,988)(4,351,224)

9.4% D(36.3%)-

Selling, general and administrative
expensesFinance cost
Income on equity method investments(1,575,206)(224,322)
379,431(1,849,385)(282,764)
203,742(274,179)(58,442)(175,689)

17.4% E
26.1% F(46.3%) G

Derivative gain (loss)(excluding gain (loss) on investments)(480,665)

1,104,221

1,584,886-

C

H

Change in third-party interests in SVF1
and SVF2
Other gain (loss)
Income before income tax
Income taxes
Net income from continuing operations
Discontinued operations
Net income from discontinued operations
Net income(956,736)
251,246
3,361,504(975,983)
2,385,521

172,451(38,742)
1,234,724(585,430)
649,294

1,129,187(289,988)(2,126,780)
390,553(1,736,227)(63.3%)(40.0%)(72.8%)

711,174
3,096,695

649,294(711,174)(2,447,401)- J(79.0%)Net income attributable to owners of
the parent

3,055,162

392,617(2,662,545)(87.1%)

Total comprehensive income

2,543,236

1,591,055(952,181)(37.4%)

Comprehensive income attributable toowners of the parent

2,488,577

1,322,083(1,166,494)(46.9%)

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

4

ISoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 2021

B Gain on Investments at Investment Business of Holding Companies
Investment gain of ¥15,954 million was recorded. The Company recorded gain related to settlement of prepaid
forward contracts using Alibaba shares of ¥68,050 million, along with realized and unrealized valuation gains
totaling ¥103,440 million (net) on a number of other investments. The Company recorded unrealized valuation
losses of ¥65,466 million on T-Mobile (after merging with Sprint Corporation, T-Mobile US, Inc.) and ¥55,697
million on Deutsche Telekom AG (“Deutsche Telekom”) shares. In addition, the Company recorded a loss of¥47,119 million on investments in listed stocks and other instruments. See “(a) Investment Business of Holding
Companies Segment” under “b. Results by Segment” for details.
C Loss on Investments at SVF1, SVF2, and Others
Investment loss of ¥767,736 million was recorded. SVF1 recorded realized gain on investments (net) of ¥1,016,664
million, of which ¥1,052,103 million (net) had been recorded as unrealized gains on investments in past fiscal years,
2

mainly as a result of sales of entire or partial shareholding positions of certain investments. In addition, SVF1
recorded unrealized losses on valuation (net) totaling ¥1,967,600 million for listed portfolio companies. This wasdue to losses totaling ¥2,379,335 million recorded for 15 portfolio companies, including losses of ¥1,123,398
million recorded for Coupang, Inc. (“Coupang”) and ¥630,163 million recorded for DiDi Global Inc. (“DiDi”). In
contrast, gains totaling ¥411,734 million was recorded for seven companies including SenseTime Group, Inc.
(“SenseTime”) and One97 Communications Limited (“PayTM”). For unlisted portfolio companies, SVF1 recorded
unrealized gains on valuation (net) totaling ¥1,154,294 million, mainly reflecting an increase in fair values of certain
portfolio companies.
SVF2 recorded realized gain on investments of ¥110,960 million, of which ¥146,919 million (net) had beenrecorded as unrealized gains on investments in past fiscal years, mainly as a result of the partial sale of its
investment in KE Holdings Inc. (“KE Holdings”). SVF2 recorded unrealized gain on valuation (net) of ¥106,511
million mainly due to strong share price performance of AutoStore Holdings Ltd. (“AutoStore”), which was newly
listed in the third quarter, and an increase in fair values of unlisted portfolio companies. These were partially offset
by a decline in the share price of KE Holdings. See “(b) SoftBank Vision Funds Segment” under “b. Results by
Segment” for details.
D Gain on Investments at Latin America Funds
Gain on investments at Latin America Funds was ¥136,734 million. SoftBank Latin America Fund 1 recorded
unrealized gain on valuation of investments (net) totaling ¥144,795 million, mainly due to an increase in fair valuesof unlisted portfolio companies, such as Kavak Holdings Limited, QUINTOANDAR, LTD., and Creditas Financial
Solutions, Ltd. See “(e) Latin America Funds Segment” under “b. Results by Segment” for details.
Primarily as a result of B through D, total loss on investments was ¥551,768 million.
E Selling, General and Administrative Expenses
Selling, general and administrative expenses increased by ¥267,089 million in the SoftBank segment. This was
mainly due to the impact of the consolidation of LINE Corporation in March 2021 and an increase in sales
promotion expenses at Yahoo Japan Corporation.

5

SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 2021

F Finance Cost
Interest expenses increased by ¥51,420 million in the Investment Business of Holding Companies segment. This3

mainly reflected increases in interest expenses at SBG .
G Income on Equity Method Investments
4

Income on equity method investments related to Alibaba was ¥232,401 million, a decrease of ¥107,639 million
year on year. This was mainly due to the recording of an investment loss on Alibaba’s investments classified as
financial assets at FVTPL.
Alibaba recorded an expense for the three-month period ended March 31, 2021 for the fine levied by China’s
State Administration for Market Regulation pursuant to China’s Anti-Monopoly Law. The Company had alreadyrecorded the expense in the fourth quarter of the previous fiscal year as a significant event during the applicable
period on a three-month time lag.
H Derivative Gain (Excluding Gain (Loss) on Investments)
Derivative gain of ¥1,058,206 million was recorded in connection with prepaid forward contracts using Alibaba
shares entered into in the fiscal years ended March 31, 2020 and March 31, 2021, as well as in the period.
Within derivative gain (loss), gains and losses related to investing activities, such as the acquisition and sale ofshares, are included in “gain (loss) on investments.” For example, this applies to derivative gains and losses arisingfrom long call options of listed stocks held by asset management subsidiaries. Conversely, those related to noninvesting activities, particularly gains and losses arising from derivatives used in fund procurement, are included in“derivative gain (loss) (excluding gain (loss) on investments).” For example, this applies to derivative gains andlosses related to prepaid forward contracts using Alibaba shares and T-Mobile shares. However, in cases where theprepaid forward contracts are settled using shares rather than cash, gains and losses arising from the reversal ofderivative financial assets or derivative financial liabilities at settlement are included in “investment gain (loss)” aspart of gains and losses related to settlement of prepaid forward contracts using shares.
Primarily as a result of A through H, income before income tax was ¥1,234,724 million, a decrease of¥2,126,780 million (63.3%) year on year.
I Income Taxes
Income taxes were recorded at SoftBank Corp. and Yahoo Japan Corporation. Meanwhile, deferred tax expenses
were recorded due to recording derivative gain related to prepaid forward contracts using Alibaba shares.
J Net Income from Discontinued Operations
In the same period of the previous fiscal year, the Company recorded a gain of ¥721,068 million related to loss ofcontrol of Sprint Corporation in connection with Sprint Corporation ceasing to be a subsidiary of the Company,
following the completion of the merger between Sprint Corporation and T-Mobile US, Inc.
Primarily as a result of A through J, net income attributable to owners of the parent was ¥392,617 million, adecrease of ¥2,662,545 million (87.1%) year on year.

6SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 2021

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. In the first quarter, the “Latin America Funds segment” wasnewly established. In the second quarter, the “SoftBank Vision Funds segment” was renamed from “SVF1 andOther SBIA-Managed Funds segment” due to change in the manager of SVF2 to SBGA. As of the third quarter-end,
there are five reportable segments: Investment Business of Holding Companies, SoftBank Vision Funds, SoftBank,
Arm, and Latin America Funds.
The following is a summary of the reportable segments.
Segments
Main businesses
Reportable segments
Investment Business of ·Investment activities by SBG and its
subsidiaries
Holding Companies

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

SoftBank Vision Funds·Investment activities by SVF1 and SVF2

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

SoftBank·Provision of mobile services, sale of mobile
devices, and provision of broadband
services in Japan·Internet advertising and e-commercebusiness

SoftBank Corp.
Z Holdings Corporation
Yahoo Japan Corporation
LINE Corporation

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

Arm Limited

Latin America Funds·Investment activities by SoftBank Latin
America Fund 1 and SoftBank Latin
America Fund 2

SBLA Advisers Corp.
SBLA Latin America Fund
(Cayman) L.P.
SBLA Holdings (Cayman) L.P.
SBLA Holdings II DE LLC
SLA Holdco I LLC·Smartphone payment business·Alternative investment managementbusiness·Fukuoka SoftBank HAWKS-related
businesses

PayPay Corporation
Fortress Investment Group LLC
Fukuoka SoftBank HAWKS Corp.

Other

7

SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 2021

(a) Investment Business of Holding Companies Segment
1. Gain on investments of ¥15.8 billion: Recorded ¥68.1 billion gain related to settlement of prepaid*1
forward contracts using Alibaba shares and a total of ¥103.4 billion (net) realized and unrealized
valuation gains on a number of other investments. Meanwhile, unrealized valuation losses totaling*2¥121.2 billion for T-Mobile and Deutsche Telekom shares and investment losses totaling ¥47.2 billion
for listed stocks and other instruments were recorded.
2. Segment income of ¥973.7 billion, as a result of recording ¥1.1 trillion derivative gain (excluding
investment gains) related to prepaid forward contracts using Alibaba shares.
Notes:
1. Includes income of ¥12.5 billion related to effects of foreign exchange translation, which arose from the difference in exchange rates
used to translate unrealized valuation gains and losses and realized gains and losses when transferring unrealized gains and losses
recorded in past fiscal years to realized gains and losses in the current fiscal year. During the third quarter, this occurred mainly as aresult of intercompany transactions related to the shares of WeWork Inc. as described below.
2. Includes the impact of investments by SB Northstar in special purpose acquisition companies (SPACs) controlled by SBIA US,
which has been eliminated from the scope of consolidation.

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 (“SBGC”),
SoftBank Group Japan Corporation (“SBGJ”), asset management subsidiary SB Northstar, and certain othersubsidiaries engaged in investment and financing activities. Gain and loss on investments at Investment Business of
Holding Companies comprises gains and losses on investments held by SBG either directly or through its
subsidiaries but does not include gains and losses on investments pertaining to subsidiaries’ shares, such as dividend
income from subsidiaries or impairment losses related to the subsidiaries’ shares.
The companies comprising this segment hold approximately 120 portfolio companies, including Alibaba, TMobile, and Deutsche Telekom, as well as investees of SB Northstar. They are either equity method associates (suchas Alibaba) or investments classified as financial assets at FVTPL. Regarding the financial results of portfolio
companies classified as equity method associates, income and losses are recorded as “income (loss) on equity
method investments” in proportion to equity interest. Investments classified as financial assets at FVTPL aremeasured at fair value every quarter, and any change in fair value is recorded in the Consolidated Statement of
Income as “gain (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*1

related to listed stocks, using surplus funds of SBG. The balance of its investments as of the previous fiscal yearend stood at ¥2.2 trillion; as of the third quarter-end, the amount decreased to ¥517.1 billion due to the reallocationof funds to investments in SVF2, which is currently the primary focus of the Company. SBG indirectly holds 67%
and SBG’s Representative Director, Corporate Officer, Chairman & CEO Masayoshi Son indirectly holds 33% ofinterests in SB Northstar. Masayoshi Son’s interest is deducted from the gains and losses on investments at SB
Northstar as a non-controlling interest; therefore, 67% of the gains and losses on investments impacts net income
attributable to owners of the parent.
Furthermore, 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 share of any such unfunded obligations based
upon his relative ownership percentage of SB Northstar.
Note:
1. Includes NVIDIA Corporation shares held by SBG of ¥15.5 billion as of the previous fiscal year-end and ¥35.6 billion as of thethird-quarter end.

8SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 2021

FINANCIAL RESULTS(Millions of yen)
Nine months ended December 31
2020
2021
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 gain (loss) on valuation of
investments at asset management
subsidiaries
Derivative gain (loss) on investments at asset
management subsidiaries
Realized gain (loss) on investments
Unrealized gain on valuation of investments
Change in valuation for the fiscal year
Reclassified to realized gain (loss)*1
recorded in the past fiscal year
Derivative gain (loss) on investments*2
Effect of foreign exchange translation
Other
Selling, general and administrative expenses
Finance cost
Income on equity method investments
Derivative gain (loss)(excluding gain (loss) on investments)
Other gain (loss)
Segment income (income before income tax)

Change Change %846,477

15,846(830,631)(98.1%) A

421,755

68,0503,149

68,050(418,606)(99.3%)(92,459)

68,315

160,774-

105,658(259,294)(364,952)-(577,602)
206,233
532,146
533,432

123,726(272,022)
261,788(177,639)

701,328(478,255)(270,358)(711,071)(50.8%)-(1,286)
248,558
2,188(74,094)(157,769)
363,660

439,427(4,211)
12,486
13,859(62,322)(209,189)
221,680

440,713(252,769)
12,486
11,671
11,772(51,420)(141,980)

533.4%(15.9%)
32.6% B
(39.0%) C(482,668)
267,379

1,106,568(98,841)

1,589,236(366,220)-762,985

973,742

210,757

27.6%

D

Notes:
1. Unrealized gains and losses on valuation of investments recorded in past fiscal years related to the investments realized in the fiscal
year are reclassified as “realized gain (loss) on investments.”
2. Unrealized gains and losses on valuation of investments are translated using the average exchange rate for the quarter in which thegains and losses incurred, while realized gains and losses on investments are translated using the average exchange rate for thequarter in which the shares were disposed of. Effect of foreign exchange translation arises from the different foreign currency
exchange rates used for these unrealized gains and losses on valuation and realized gains and losses.

A Gain on investments at Investment Business of Holding Companies: ¥15,846 million· Gain relating to settlement of prepaid forward contracts using Alibaba shares of ¥68,050 million was recorded dueto the in-kind settlement of a portion of the contract through the delivery of Alibaba shares.
· Gain relating to sales of T-Mobile shares of ¥3,149 million was recorded in conjunction with a partial sale of TMobile shares in September 2021. See “Partial Sale of T-Mobile Shares in September 2021” for details of the saletransaction. Cumulative losses pertaining to the 45.4 million T-Mobile shares that were the subject of this sale
were ¥13,447 million. This is the difference between the fair value of the 45.4 million shares as of June 26, 2020,
when T-Mobile was excluded from the Company's equity method associates, and the fair value of the 225.0
million Deutsche Telekom shares received as consideration upon completion of such sale.
· Realized gain of ¥68,315 million and unrealized valuation loss of ¥259,294 million were recorded on investments
at asset management subsidiaries. This was a result of investments in listed stocks and other instruments by SB
Northstar.
9

SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 2021

· Derivative gain on investments at asset management subsidiaries of ¥123,726 million was recorded. This was due
to recording gains at SB Northstar mainly related to long call options on listed stocks.
· Realized loss on investments of ¥272,022 million and unrealized gain on valuation of investments of ¥261,788
million were recorded. This was mainly due to the sale of shares of a wholly owned subsidiary that held the sharesof WeWork Inc. (“WeWork”) from SBG to SVF2. Following the sale, the Company recorded a realized loss of¥458,716 million in this segment, while also reclassifying a ¥478,059 million unrealized valuation loss recordedin past fiscal years as a realized gain. These gains and losses related to the sale are eliminated in consolidation as
an intercompany transaction. From the acquisition of the WeWork shares to the sale of such shares, the Company
recorded a cumulative loss of ¥636,135 million ($5,924 million) in the segment, which includes theabovementioned investment gains and losses as well as gains and losses related to investments accounted forusing the equity method. Recording of unrealized loss on valuation resulting from changes in valuation for the
fiscal year also included a ¥65,466 million loss on investments in T-Mobile and a ¥55,697 million loss on those in
Deutsche Telekom.
· Derivative loss on investments of ¥4,211 million was recorded. This was mainly due to a loss of ¥30,260 million
recorded pertaining to the right to acquire T-Mobile shares for no additional consideration if certain conditions are
met. This was partly offset by a gain of ¥17,743 million recorded related to call options for T-Mobile shares that
the Company continues to hold.
B Finance cost: ¥209,189 million (increase of ¥51,420 million year on year)
3

Interest expenses increased by ¥45,765 million year on year at SBG to ¥200,357 million, due to an increase ininterest-bearing debt mainly resulting from the issuance of bonds, and borrowings made through margin loans.
C Income on equity method investments: ¥221,680 million (decrease of ¥141,980 million year on year)
4

Income on equity method investments related to Alibaba was ¥232,401 million, a decrease of ¥107,639 million
year on year, mainly due to recording an investment loss on its investments classified as financial assets at FVTPL.
Alibaba recorded an expense for the three-month period ended March 31, 2021 for a fine levied by China’s State
Administration for Market Regulation pursuant to China’s Anti-Monopoly Law. The Company had already recorded
the expense in the fourth quarter of the previous fiscal year as a significant event during the period on a three-monthtime lag.
D Derivative gain (excluding gain (loss) on investments): ¥1,106,568 million
Derivative gain of ¥1,058,206 million was recorded in connection with prepaid forward contracts using Alibaba
shares entered into in the fiscal years ended March 31, 2020 and March 31, 2021, and in the current period.

10SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 2021

Partial sale of T-Mobile shares in September 2021
On September 6, 2021, the Company entered into a master framework agreement (the “Agreement”) with
Deutsche Telekom, pursuant to which Deutsche Telekom agreed to partially exercise its right to acquire theshares of T-Mobile in accordance with the terms of the fixed and floating call options (“Deutsche Telekom Call
Options”) granted by the Company to Deutsche Telekom in June 2020, and to amend certain execution
conditions associated with the floating call options. Following the exercise of Deutsche Telekom Call Options,the Company sold 45,366,669 of its 106,291,623 T-Mobile shares to Deutsche Telekom and received
225,000,000 Deutsche Telekom shares (the reference price: €20 per share; 4.5% of Deutsche Telekom’s
outstanding shares) as consideration. Under the Agreement, Deutsche Telekom also provided its consent for theCompany to have additional flexibility to pledge its T-Mobile shares in connection with entry into margin loans
and other monetization transactions and agreed that it will prioritize the use of cash proceeds from certain
divestitures to exercise additional Deutsche Telekom Call Options for cash up to an aggregate of $2.4 billion of
the total exercise price, subject to certain conditions. Following entry into the Agreement, the Company carriedout the following monetization transactions using T-Mobile shares and Deutsche Telekom shares.

Transaction

ProcuredamountBorrowings made using 106,291,623 TMobile shares pledged as collateral (marginloan)$4.38 billion
Number of shares held as of June 30, 2021
b Fund procurement through prepaid forward
contracts using 17,935,000 T-Mobile shares$1.81 billionc Borrowings made using 42,989,954 TMobile shares pledged as collateral (marginloan)$2.65 billiond Repayment of borrowings in “a” using$(4.38) billion
funds acquired in “b” and “c”
e 60-day loan using 45,366,669 T-Mobile$1.25 billion
shares pledged as collateral (bridge loan)
f Sale of 45,366,669 T-Mobile shares to
Deutsche Telekom, receiving 225,000,000
Deutsche Telekom shares as consideration
Number of shares held as of September 30, 2021
g Fund procurement through collartransactions using 225,000,000 Deutsche$3.04 billion*
Telekom sharesh Repayment of borrowings in “e” using part$(1.25) billionof the funds acquired in “g”
Number of shares held as of December 31, 2021

Execution
timingNumber of shares held
T-Mobile
Deutscheshares Telekom shares(millions)(millions)aJul 2020
106.3-(45.4)
60.9

225.0
225.0

60.9

225.0

Sep 2021

Oct 2021*The euro equivalent of the amount procured is €2.64 billion.

As described above, the Company plans to sell an additional approximately 20 million shares of the
60,924,954 T-Mobile shares continued to be held through Deutsche Telekom’s exercise of additional Deutsche
Telekom Call Options for cash using its proceeds from certain divestitures for up to $2.4 billion of the total
exercise price. Approximately half of these proceeds will be used to repay the proportional margin loan whichthese shares underlie.

11SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 2021

Impact of the asset management subsidiaries on the Company’s Condensed Interim Consolidated Statement*1of Financial Position

Cash and cash equivalents
Investments from asset management subsidiaries
Securities pledged as collateral in asset management subsidiaries
Derivative financial assets in asset management subsidiaries
Other financial assets
Other
Total assets
Interest-bearing debt
Derivative financial liabilities in asset management subsidiaries
Other financial liabilities
Other
Total liabilities*2

Investments from Delaware subsidiaries
Equivalent amount of cash investments by SBG in Delaware subsidiaries
Equivalent amount of loans to Delaware subsidiaries held by SBG(the amount entrusted by SBG related to asset management)
Equivalent amount of cash investments by Masayoshi Son in Delaware subsidiaries
Retained earnings
Exchange differences on translating foreign operations
Equity(Millions of yen)
December 31, 2021
216,272
386,987
94,560154,887
167,218
11,6781,031,602
275,35563
201,459
2,939
479,816
1,110,916
39,786
1,051,237
19,893 A(573,237) B
14,107551,786 C

Notes:
1. SB Northstar’s statement of financial position, excluding the impact of Alibaba shares contributed in kind to SB Northstar by SBG
via Delaware subsidiaries and investments made by SB Northstar in SPACs controlled by SBIA US, is presented for reference toshow the impact of SB Northstar on the Condensed Interim Consolidated Statement of Financial Position of the Company.
2. 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.
(“Delaware subsidiaries”), to the asset management subsidiary, SB Northstar(Calculation of non-controlling interests)
Equivalent amount of cash investments by Masayoshi Son in Delaware subsidiaries*3
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(190,994)
3,316(167,785) D

Note:
3. One-third of B in the table(Interests in equity (C above))(Millions of yen)
719,571(167,785) DInterests of SBG
Non-controlling interests (interests of Masayoshi Son)
Equity551,786

12

CSoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 2021

MAIN INTEREST-BEARING DEBT AND LEASE LIABILITIES IN THIS SEGMENT

Borrower
SBG

Type
Borrowings
Corporate bonds
Lease liabilities
Commercial paper

Wholly owned subsidiaries
conducting fund procurement

Prepaid forward contracts using Alibaba
shares (floor contracts, collar contracts,and forward contracts)

SB Northstar

Balance as of December 31,
2021 in Condensed Interim
Consolidated Statement of
Financial Position¥1,397.5 billion¥5,674.7 billion¥12.4 billion¥288.1 billion¥4,034.6 billion

Borrowings using Alibaba shares(margin loan)¥686.8 billion

Borrowings using SoftBank Corp. shares(margin loan)¥499.7 billion

Prepaid forward contracts using
T-Mobile shares (collar contracts)¥236.2 billion

Borrowings using T-Mobile shares(margin loan)¥303.6 billion

Collar transactions using Deutsche
Telekom shares¥396.2 billion

Borrowings¥275.4 billion

Note:
1. Borrowings of wholly owned subsidiaries conducting fund procurement are non-recourse to SBG, except for borrowings using TMobile shares which SBG partially guarantees.

13SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 2021(b) SoftBank Vision Funds Segment
1. Loss on investments (net) was ¥579.7 billion. Segment loss was ¥480.6 billion, after deducting change inthird-party interests◆ SVF1- ¥1,016.7 billion realized gain on investments (net), of which ¥1,052.1 billion (net) had been recorded as
unrealized valuation gains in past fiscal years, mainly due to a partial sale of its interests in listed portfolio
companies including DoorDash, Uber, and Coupang- ¥658.8 billion unrealized valuation loss (net) on investments held at the third quarter-end· ¥1,967.6 billion valuation loss (net) for listed portfolio companies: Losses totaling ¥2,379.3 billion wererecorded for 15 portfolio companies including Coupang, DiDi, and Auto1, while gains totaling ¥411.7
billion were recorded for seven portfolio companies including SenseTime, PayTM, and DoorDash· ¥1,308.8 billion valuation gain (net) for unlisted portfolio companies mainly due to an increase in the fairvalue of those with subsequent funding rounds, those that are expected to be listed or exited and whose
performance is progressing faster than expected◆ SVF2- ¥111.0 billion realized gain on investments. Of this, ¥146.9 billion (net) had been recorded as unrealized
gains on investments in past fiscal years- ¥121.0 billion unrealized valuation gain on investments (net) held at the third quarter-end· ¥42.7 billion valuation loss (net) for listed portfolio companies· ¥163.7 billion valuation gain (net) for unlisted portfolio companies
2. Status of investment activities◆ SVF1- Investments before exit: Held 83 investments (including 22 listed portfolio companies) as of the third
quarter-end at investment cost totaling $71.6 billion, with fair value amounting to $101.6 billion*1- Cumulative gross gain since SVF1’s inception reached $49.3 billion, including cumulative realized gain of$16.4 billion, cumulative derivative gain of $2.2 billion, and cumulative dividend income of $0.7 billion◆ SVF2- Held 208 investments (including 13 listed portfolio companies) as of the third quarter-end at investment cost
totaling $42.6 billion, with fair value amounting to $46.8 billion- Committed capital totaled $51.0 billion as of the third quarter-end
Note:
1. Cumulative gross gain is before deducting third-party interests, tax, and expenses.

OVERVIEW
Segment results mainly include the results of the investment and operational activities of SoftBank Vision Fund 1(SVF1) and SoftBank Vision Fund 2 (SVF2).
SVF1 aims to maximize returns from a medium- to long-term perspective through large-scale investments inhigh-growth-potential companies leveraging AI, particularly in private companies valued at over $1 billion at thetime of investment, colloquially known as “unicorns.” SVF1 is managed by SBIA, a wholly owned subsidiary of theCompany established in the U.K., which is authorized and regulated by the Financial Conduct Authority. SVF1’s
investment period ended on September 12, 2019. 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. In principle, the life of SVF1 is until November 20, 2029 (unless extended for two
additional one-year periods by SBIA).
14

SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 2021

SVF2 launched in October 2019 with committed capital from SBG, aiming to facilitate the continued accelerationof the AI revolution through investment in market-leading, tech-enabled growth companies across vintage years.
While SVF2 was previously managed by SBIA, since the second quarter, the fund has been managed by SBGA, awholly owned subsidiary of the Company established in the U.K. Investment management decisions of SVF2 aremade through an investment committee established in SBGA. SBGA is headed by Rajeev Misra, CEO of SBIA,
who is also a member of the investment committee. SBGA outsources the majority of its investment and operating
functions to SBIA and SBIA continues to support the management of SVF2 under a service agreement. In addition,
MASA USA LLC (“MgmtCo”), an investment entity for the co-investment program, newly participated in the fund5in the second quarter. The interest attributable to MgmtCo is treated as a third-party interest in the Company’s
consolidated financial statements. As of the third quarter-end, SVF2’s total committed capital is $51.0 billion.
In addition, SBIA US uses SPACs to complement its investments in listed and unlisted companies and to pursue awider range of investment opportunities beyond the investment mandates for the private funds. In the third quarter,SVF Investment Corp. 3, a SPAC controlled by SBIA US, announced a definitive merger agreement with Symbotic
LLC, a US developer of automated fulfillment solutions for retailers and distributors. SVF Investment Corp. 3 raised$320 million at the time of its initial public offering on NASDAQ in March 2021 and is expected to raise additional
funds from SVF2 and PIPE investors as a result of this merger. Upon completion of the merger, which is expectedin the first half of 2022, the combined company will operate under the “Symbotic Inc.” name and will trade on
NASDAQ under the ticker symbol “SYM.”
Co-investment program of SVF2
In the second quarter, SVF2 introduced a co-investment program with restricted rights to receive distributions (the“Program”). Under the Program, the Company’s management makes joint investments with the Company andshares both the profits and risks associated with the investments. The Program aims for the Company’s management
to further focus on SVF2 and contribute to the Company’s earnings growth.
The Program targets an approved selection of SVF2’s investments, including investments in private portfolio
companies held or intended to be held by SVF2 as of June 23, 2021, and any new investments executed on or afterJune 24, 2021 (excluding any follow-on investments in the portfolio companies outside the Program’s scope).
Target investments are indirectly held by SVF II Investment Holdings LLC (“SVF2 LLC”), a subsidiary of the
6Company established beneath SVF2. SVF2 LLC issued equity to the Company and MgmtCo. Accordingly, theCompany holds 82.75% and MgmtCo holds 17.25% of the total equity interests. These equity interests are entitledto performance-based distributions that are allocated based on the proportion of respective equity contributions.
Distributions from SVF2 LLC to MgmtCo are subject to certain restrictions. Specifically, distribution will not bemade to MgmtCo until the sum of proceeds received by SVF2 LLC from realized investments plus the aggregate
fair market 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 will be released proportionately in increments of 10%. When the ratio reaches 200%, all restrictions will
be released and MgmtCo will be entitled to receive the full amount of the distribution.
MgmtCo is entitled to make full or partial payment of its capital contribution in SVF2 LLC at any point in time7

and is required to pay a premium calculated at 3% per annum on the outstanding receivables of SVF2 LLC. Any
distributable amount from SVF2 LLC to MgmtCo is offset against receivables at the time of the distribution notice8

and no distribution payment will be made to MgmtCo until SVF2 LLC’s receivables are paid in full. Furthermore,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 the time of liquidation was applied

15

SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 2021

throughout the life of SVF2 LLC, then any such excess amounts will be subject to clawback from MgmtCo.
In parallel with the introduction of the Program, the Company has decided to invest in SVF2 LLC in the form of6

preferred equity, which generates a fixed distribution of 8% per annum, to enhance the efficiency of recovery ofinvestment funds. The preferred equity interests have a priority right over the equity interests held by the Company
and MgmtCo under the Program in terms of distributions and return of contributions. The Company continues to
9hold 100% of the equity for the investments in portfolio companies outside of the Program's scope.

For details, see “(1) Introduction of Co-investment Program with Restricted Right to Receive Distributions andPreferred Equity to SVF2” under “4. SoftBank Vision Funds business” together with “19. Related party
transactions” in “(6) Notes to Condensed Interim Consolidated Financial Statements” in “3. Condensed Interim
Consolidated Financial Statements and Primary Notes.”

16

SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 2021

Outline of principal funds in the segment
As of December 31, 2021
SoftBank Vision Fund 1

SoftBank Vision Fund 2

Major limited partnership

SoftBank Vision Fund L.P.

SoftBank Vision Fund II-2 L.P.

Total committed capital(Billions of U.S. dollars)

98.6

51.0

General partner*1

The Company: 33.1
Third-party investors: 65.5
SVF GP (Jersey) Limited(The Company’s wholly owned overseas
subsidiary)

Investment period

Ended on September 12, 2019

Minimum fund life

Until November 20, 2029 (in principle)

The Company: 48.4
Third-party investor (MgmtCo): 2.6
SVF II GP (Jersey) Limited(The Company’s wholly owned overseas
subsidiary)
Not disclosed

Note:
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.
For a complete list of SVF1 and SVF2’s portfolio companies, see the Data Sheets in “Materials” under “Earnings Results Briefing”
on the Company’s website at https://group.softbank/en/ir/presentations/.

17

SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 2021

Capital deployment
As of December 31, 2021
SVF1
Total
Committed capital (A)10Drawn capital (B)(Billions of U.S. dollars)
The Company Third-party investors

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

98.6
87.1
27.6
59.5

33.1
29.8
7.0
22.8

65.5
57.3
20.6
36.7

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

11.5

3.3

8.2

Note: 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
Committed capital (A)Drawn capital (B)Remaining committed capital (C) = (A) – (B)

51.0
43.3
7.7

Note: Remaining committed capital includes recallable return of capital.

(Reference: Breakdown of committed capital as of December 31, 2021)
Total committed capital
The Company’s equity commitment to investments outside the scope of the Program
The Company’s preferred equity commitment to SVF2 LLC
The Company’s equity commitment to SVF2 LLC
MgmtCo’s equity commitment to SVF2 LLC
Note: As of the third quarter-end, no capital has been paid by MgmtCo.

18

51.0
8.0
28.0
12.4
2.6

SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 2021

FINANCIAL RESULTS(Millions of yen)
Nine months ended December 31
2020
2021
Gain (loss) on investments at SVF1, SVF2, and*1
2,767,257(579,740)
othersRealized gain on investments
205,274
1,127,624
Unrealized gain (loss) on valuation of
investments
2,545,550(1,736,841)
Change in valuation for the fiscal year
2,652,701(537,819)
Reclassified to realized gain recorded in*2(107,151) (1,199,022)
the past fiscal year
Interest and dividend income frominvestments
8,219
24,555Derivative gain on investments
1,091
51,450Effect of foreign exchange translation
7,123(46,528)
Selling, general and administrative expenses(45,199)(53,920)
Finance cost
(7,634)(18,657)
Derivative gain (excluding gain (loss) on
1,013
investments)
Change in third-party interests in SVF1 and(956,736)
172,451
SVF2
Other gain (loss)
429(1,726)
Segment income (income before income tax)
1,758,117(480,579)

ChangeChange %(3,346,997)
922,350449.3%(4,282,391)(3,190,520)-(1,091,871)-

16,33650,359(53,651)(8,721)(11,023)198.8%
19.3%
144.4%

1,013-

1,129,187(2,155)(2,238,696)

-

A

B

Notes:
1. Unrealized gains and losses associated with the change in valuation of SoftBank Vision Funds’ investment in shares in Arm andPayPay Corporation, subsidiaries of the Company, as well as dividend income received from such investment are included insegment income of the SoftBank Vision Funds segment as “gain (loss) on investments at SVF1, SVF2, and others,” but are
eliminated in consolidation and not included in “gain (loss) on investments at SVF1, SVF2, and others” in the Condensed Interim
Consolidated Statement of Income.
2. Unrealized gains and losses on valuation of investments recorded in past fiscal years related to the investments realized in the fiscal
year are reclassified as “realized gain (loss) on investments.”2

During the period, SVF1 made new and follow-on investments totaling $2.9 billion and sold all of its shares in one
11

portfolio company and a portion of its shares in 14 portfolio companies for a total of $15.3 billion, of which the2initial acquisition cost was $6.1 billion. SVF2 made new and follow-on investments totaling $36.3 billion and soldall of its shares in one portfolio company and a portion of its shares in another portfolio company for a total of $1.4
billion, of which the initial acquisition cost was $0.4 billion.
Segment income
A Loss on investments at SVF1, SVF2, and others: ¥(579,740) million· SVF1
2- Realized gain on investments (net) of ¥1,016,664 million was recorded, mainly due to the sale of all of its
interests in one portfolio company and a portion of its interests in 14 portfolio companies including DoorDash,
Uber Technologies, Inc. (“Uber”), and Coupang. Of the gain for the period, ¥1,052,103 million (net) had beenrecorded as unrealized gains on investments in past fiscal years.
- Unrealized loss on valuation of investments held by SVF1 at the third quarter-end was ¥658,781 million ($5,956
million, net) (see “SVF1” under “Investment performance” below for a breakdown). Valuation loss (net) totaling$17,647 million for listed portfolio companies was recorded due to declines in the share prices of 15 portfolio
companies, including Coupang, DiDi, and Auto1 Group GmbH (“Auto1”) despite an increase in the share pricesof seven portfolio companies including SenseTime and PayTM, which were newly listed in the third quarter, as

19

SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 2021

well as DoorDash. In contrast, valuation gain (net) totaling $11,691 million was recorded for unlisted portfolio
companies mainly due to an increase in the fair value of those with subsequent funding rounds, those that are
expected to be listed or exited and whose performance is progressing faster than expected.
· SVF2- Realized gain on investments of ¥110,960 million was recorded, as a result of an entire sale of its interest in one
portfolio company and a partial sale of its interest in KE Holdings. Of the gain for the period, ¥146,919 million(net) had been recorded as unrealized gain on investments in past fiscal years.
- Unrealized gain on valuation of investments was ¥120,963 million ($1,075 million, net) (see “SVF2” under“Investment performance” below for a breakdown). Valuation loss (net) of $393 million for listed portfolio
companies was recorded. This was mainly due to a decline in the share price of KE Holdings, which offset anincrease in the share price of AutoStore, which was newly listed in the third quarter. On the other hand, valuation
gain (net) of $1,468 million was recorded for unlisted portfolio companies, mainly due to an increase in the fairvalue from subsequent funding rounds.
B Change in third-party interests in SVF1 and SVF2: ¥172,451 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 SVF1 and SVF2,
net of management and performance fees payable to each manager and operating and other expenses of SVF1 and
SVF2. For details, see “(4) Third-party interests in SVF1 and SVF2” under “4. SoftBank Vision Funds business” in“(6) Notes to Condensed Interim Consolidated Financial Statements” in “3. Condensed Interim Consolidated
Financial Statements and Primary Notes.”
Investments transferred from the Company to SVF2
The Company has established a policy for handling the investment portfolio of SBG and its major investment
subsidiaries, and in accordance with this policy, is proceeding with the transfer of unlisted investments to SVF2 inprinciple. The Company transferred the investments shown below to SVF2 through sale or in-kind contribution asof the third quarter-end.
(Millions of U.S. dollars)

UPSIDE Foods, Inc.
Berkshire Grey, Inc.
Cybereason Inc.
InMobi Pte. Ltd.
Treasure Data, Inc.
WeWork Inc.
Ola Electric Mobility Private
LimitedPayPay Corporation

Transfer month
November 2020
March 2021
June 2021
June 2021
June 2021
August 2021

Transfer method
Sale
In-kind contribution
In-kind contribution
Sale
Sale
Sale

Transfer value
by the Company to SVF2
51
115
317
597
519
2,444

November 2021
December 2021

Sale
Sale

556
1,467

Total of 8 investments

6,066

Note: The value of investments transferred from the Company to SVF2 is based on either the Company’s carrying amount as of thequarter-end immediately prior to the transfer date if the transfer is made by in-kind contribution, or on fair value available at thetime of the transfer if the transfer is made by a sale. Investment gains and losses that occurred prior to the transfer are recorded in
the reportable segment to which the investment belonged prior to the transfer.

20

SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 2021

Investment performance
As of December 31, 2021
SVF1
(Billions of U.S. dollars)

Total ((1) + (2) + (3) + (4) below)
Cumulative
number ofinvestments
97

Cumulative
investment
cost
88.6

Cumulative
investment
return137.9

Cumulative
*1
gain
49.3

Cumulative
Cumulative
number ofinvestment
investments
cost
Effects of share exchanges
(2)
(1.7)
Uber Advanced Technologies Group and Aurora Innovation Inc.
PT Tokopedia and GoTo
Effects of dividends in kind
(1)
Treasure Data, Inc.
Net of effects of share exchanges and
*2, 3
94
86.9
dividends in kind

Cumulative
investment
return(1.7)

Cumulative
*1
gain
0.0

-

-

136.2

49.3

(Reference)(1) Investments before exit (investments held at the third quarter-end)

Listed companies
Unlisted companies
Total

Number ofinvestments
22
61
83

Investment
cost
33.7
37.9
71.6

Fair value
47.7
53.9
101.6

Cumulative
unrealized*4
valuation gain
14.0
16.0
30.0

Unrealized
valuation gain
(loss) recorded forthe fiscal year
Q1-Q3
(17.6)
11.7(6.0)

Cumulative*1
realized gain
11.2
5.1
16.4

Realized gainrecorded for the
fiscal year
Q1-Q3
8.9
0.3
9.2

Cumulative
derivative gain
0.8
1.5
2.2

Derivative gainrecorded for the
fiscal year
Q1-Q3
0.8
0.8

Cumulative
income0.7

Interest anddividend income
recorded for the
fiscal year
Q1-Q3
0.2

(2) Exited investments

Partial exit
*5
Full exit
Total

Number ofinvestments
14
14

Investment
cost
7.7
9.3
17.0

Exit price
18.9
14.4
33.3

Derivative
cost
0.0
0.0

Fair value /settlement
price
0.8
1.5
2.3

(3) Derivative gain and loss related to investment

Unsettled
SettledTotal(4) Interest and dividend income from investments
Interest anddividend
income0.7

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, tax, and expenses
2. For investments in which share exchanges occurred, 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 investment count.
3. In addition to the share exchanges listed above, SVF1 exchanged all shares in two portfolio companies for shares in their affiliatedcompanies, which are also existing portfolio companies. Acquisition costs and disposal prices (sale prices) of these investments are21SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 2021

also deducted in this section.
4. 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 the presentation.
5. Includes disposal (sale) through share exchanges.

SVF2(Billions of U.S. dollars)

Total ((1) + (2) + (3) + (4) below)
Cumulative
number ofinvestments
209

Cumulative
investment
cost
43.1

Cumulative
investment
return48.0

Cumulative
*1
gain
4.9

(1) Investments before exit (investments held at the third quarter-end)

Listed companies
Unlisted companies
Total

Number ofinvestments
13
195
208

Investment
*2
cost
8.7
33.9
42.6

*2

Fair value
11.5
35.3
46.8

Cumulative
unrealized
valuation gain
2.8
1.4
4.2

Unrealized
valuation gain
(loss) recorded forthe fiscal year
Q1-Q3
(0.4)
1.5
1.1

Cumulative*1
realized gain
0.9
0.1
1.0

Realized gainrecorded forthe fiscal year
Q1-Q3
1.0
0.0
1.0

Cumulative
derivative loss
(0.3)

Derivative loss
recorded forthe fiscal year
Q1-Q3
(0.3)

Cumulative
income0.0Interest anddividend income
recorded forthe fiscal year
Q1-Q3
0.0

(2) Exited investments

Partial exit
Full exit
Total

Number ofinvestments
1
1

Investment
cost
0.5
0.0
0.5

Exit price
1.4
0.1
1.5

(3) Derivative gain and loss related to investment

Total

Derivative
cost-

Fair value(0.3)(4) Interest and dividend income from investments
Interest anddividend
income0.0

Total
Notes:
1. Before deducting tax and expenses
2. 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.

22SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 2021

(Reference) Investments before exit (investments held at the third quarter-end)
As of December 31, 2021
SVF1
(Billions of U.S. dollars)

SectorNumber ofinvestments

Investment
cost

Fair value

Cumulative
unrealized
valuation gain
(loss)

Unrealized valuation
gain (loss) recorded
for the fiscal year
Q1-Q3

a

Consumer

14

10.6

36.4

25.8

(3.4)

b

Edtech

1

0.7

0.1

(0.6)

(1.0)

c

Enterprise

7

1.6

2.5

0.9

0.5

d

Fintech

11

4.0

3.8

(0.2)

1.4

e

Frontier Tech

10

11.1

14.4

3.3

2.4

f

Health Tech

8

2.0

3.4

1.4

(0.5)

g

Logistics

13

8.6

16.9

8.3

2.4

h

Proptech

9

10.0

4.4

(5.6)

(1.2)

i

Transportation

10

23.0

19.7

(3.3)

(6.6)

83

71.6

101.6

30.0

(6.0)

22

33.7

47.7

14.0

(17.6)a Coupang

2.4

15.0

12.6

(10.2)d One97 Communications (PayTM)

1.4

2.0

0.6

0.7

d OneConnect

0.1

0.0

(0.1)

(0.0)

d PB Fintech (Policybazaar)

0.1

0.6

0.5

0.4

d ZhongAn Insurance

0.0

0.0

(0.0)

(0.0)

e SenseTime

1.4

3.3

1.9

1.7

e Zymergen

0.4

0.2

(0.2)

(0.7)

f

Guardant Health

0.0

0.1

0.1

(0.0)

f

Relay Therapeutics

0.3

0.9

0.6

(0.1)

f

Roivant Sciences

0.9

1.0

0.1

(0.2)

f

Vir Biotechnology

Total(Reference)
Listed companies

*1

0.2

0.9

0.7

(0.2)

g DoorDash

0.4

5.0

4.6

0.6

g Full Truck Alliance

1.7

1.6

(0.1)

(0.4)

h Compass

1.1

1.2

0.1

(1.2)

h Opendoor

0.3

0.6

0.3

(0.3)

h View

1.2

0.3

(0.9)

(0.2)

h WeWork

3.2

0.8

(2.4)

0.1

i

Aurora Innovation

0.3

0.4

0.1

0.1

i

Auto1

0.7

0.9

0.2

(1.3)

i

DiDi

12.1

4.8

(7.3)

(5.6)

i

Grab

3.0

5.0

2.0

0.1

i

Uber

2.5

3.1

0.6

(0.9)

37.9

53.9

16.0

11.7

Unlisted companies

61

Total
83
71.6
101.6
30.0
(6.0)
Note:
1. The letter corresponding to the listed companies indicates the sector to which the company belongs. Investments in that sector are notlimited to those listed companies.

23

SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 2021

SVF2
(Billions of U.S. dollars)

SectorNumber ofinvestments

Investment
cost

Fair value

Cumulative
unrealized
valuation gain
(loss)

Unrealized valuation
gain (loss) recorded
for the fiscal year
Q1-Q3

a

Consumer

52

9.7

10.2

0.5

0.5

b

Edtech

10

1.2

1.2

(0.0)

(0.1)

c

Enterprise

43

5.8

5.9

0.1

0.1

d

Fintech

27

7.9

7.8

(0.1)

0.3

e

Frontier Tech

15

2.1

2.2

0.1

0.0

f

Health Tech

30

3.3

3.4

0.1

(0.0)

g

Logistics

12

5.1

7.0

1.9

2.0

h

Proptech

7

5.3

6.4

1.1

(2.0)

i

Transportation

9

2.1

2.6

0.5

0.3

j

Other

3

0.1

0.1

0.0

0.0

208

42.6

46.8

4.2

1.1

13

8.7

11.5

2.8

(0.4)

a Dingdong

0.3

0.2

(0.1)

(0.1)

b Zhangmen

0.1

0.0

(0.1)

(0.1)

e IonQ

0.1

0.1

0.0

0.0

e Qualtrics

0.0

0.0

0.0

0.0

f

Exscientia

0.3

0.4

0.1

0.1

f

Pear Therapeutics

0.1

0.1

0.0

0.0

f

Seer

0.2

0.1

(0.1)

(0.1)

g AutoStore

2.8

5.2

2.4

2.4

g Berkshire Grey

0.6

0.4

(0.2)

(0.3)

g Full Truck Alliance

0.3

0.2

(0.1)

(0.0)

g JD Logistics

0.6

0.4

(0.2)

(0.2)

h KE Holdings

0.9

1.4

0.5

(2.7)

h WeWork

2.4

3.0

0.6

0.6

Total

(Reference)
Listed companies*1

Unlisted companies

195

33.9

35.3

1.4

1.5

Total

208

42.6

46.8

4.2

1.1

Note:
1. The letter corresponding to the listed companies indicates the sector to which the company belongs. Investments in that sector are notlimited to those listed companies.

24SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 2021

(c) SoftBank Segment
Segment income decreased by 3.0% yoy mainly due to a decrease in income in the consumer businesspartly caused by a mobile service communications rate cut, despite an increase in income in the enterpriseand the Yahoo! JAPAN/ LINE businesses.
(Millions of yen)
Nine months ended December 31
2020
2021
Net sales
Segment income (income before income tax)
Depreciation and amortization
Gain (loss) on investments
Finance cost*1
Loss on equity method investments

ChangeChange %3,805,561
746,219(537,640)(4,496)(48,849)(26,205)

4,173,561
724,199(550,625)
21,506(46,452)(49,236)

368,000(22,020)(12,985)
26,002
2,397(23,031)9.7%(3.0%)
2.4%(4.9%)
-

(135)

289

424

-

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

Note:
1. Includes losses on equity method investments related to PayPay Corporation of ¥23,415 million for the period and ¥20,634 million
for the same period of the previous fiscal year. At SoftBank Corp., PayPay Corporation is classified as an equity method associate;however, PayPay Corporation has consistently been classified as a subsidiary of SBG since its founding in June 2018 and its
financial results are included in “Other.” For this reason, loss on equity method investments related to PayPay Corporation
recognized in the SoftBank segment is eliminated in “Reconciliations” in segment information.

OVERVIEW
Segment results include the results of business activities conducted by SoftBank Corp., such as provision of mobile
services and sale of mobile devices, as well as provision of broadband and e-commerce services, mainly inside
Japan. Under its Beyond Carrier strategy, SoftBank Corp. aims to strengthen its earnings base by going beyond theconfines of a conventional telecommunications carrier, while further growing the telecommunications business, andexpanding its businesses in three fields: telecommunications business, Yahoo! JAPAN/ LINE business, and new
businesses.
FINANCIAL RESULTS
Segment income was ¥724,199 million, a decrease of ¥22,020 million (3.0%) year on year. This was mainly due to adecrease in income in the consumer business, despite an increase in income in the enterprise and Yahoo! JAPAN/
LINE businesses. While the revenue increase was mainly driven by the consolidation of LINE Corporation and anincrease in sales of mobile devices, their contribution to segment income was tempered by corresponding increases
in cost of sales and selling, general and administrative expenses.
Income in the consumer business decreased due to a fall in mobile service charges. On the other hand, income inthe enterprise business increased, reflecting growth in mobile revenue following greater demand for remote working
and growth in sales of cloud and digital marketing advertising services as the digitization of enterprises accelerated.
Moreover, in the Yahoo! JAPAN/ LINE business, income grew due to an increase in sales centered on advertisingrelated services mainly associated with the consolidation of LINE Corporation.
Impairment loss on equity method investments of ¥18,379 million was recorded in relation to Demae-can Co.,
Ltd. The loss had a negative impact of ¥1,673 million on net income attributable to owners of the parent at theCompany.
For more information on SoftBank Corp.’s financial results and business operations, please refer to its website athttps://www.softbank.jp/en/corp/ir/.

25

SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 2021(d) Arm Segment
1. Continuing strong revenue growth, positive segment income◆ Net sales increased by 46.9% yoy.
- Technology royalty revenue increased by 21.7% yoy (U.S. dollar-based) due to strong industry growth andmarket share gains.
- Technology non-royalty revenue increased by 73.4% yoy (U.S. dollar-based) due to the availability of Arm’s
newly developed products enabling existing customers to upgrade to the latest Arm technology, as well as
new customers licensing their first ever Arm processor.
◆ Following years of planned investments, increasing segment income is due to current strong revenue
growth combined with an ongoing disciplined approach to further investment.
2. Arm’s latest technology in chips for next generation products and services
In the third quarter, more Arm customers have introduced Armv9 for server and smartphone chips.
(Millions of yen)
Nine months ended December 31
2020
2021
Net sales
Segment income (income before income tax)

154,749(24,204)

227,370
31,088ChangeChange %72,621
55,29246.9%-

Notes:
1. Since the fourth quarter of the previous fiscal year, the Internet-of-Things Services Group (ISG) business is managed separately fromthe Arm business and its results are therefore included in “Other” instead of the Arm segment.
2. Segment income included amortization expenses of ¥37,877 million for the period and ¥36,063 million for the same period of theprevious fiscal year. These expenses are related to intangible assets recognized in the purchase price allocation at the time of theacquisition of Arm.

OVERVIEW
Arm’s operations primarily consist of licensing of semiconductor intellectual property (IP), including the design ofenergy-efficient microprocessors and associated technologies. Arm has accelerated investment in R&D by hiring
more engineers. With the expansion of its engineering capability, Arm can develop new technologies that will help
it maintain or increase its share of the existing markets and expand into new markets.
Industry trends and their impact
Semiconductor industry trends can have a significant impact on Arm’s financial results, both positively andnegatively. The semiconductor industry has grown very strongly due to long-term trends such as more products andservices depending on increasing amounts of embedded intelligence, such as cars providing more driver information
and assistance, and smartphones improving camera technology generation after generation for better photography.
Some markets have shown particularly strong growth in the period including 5G smartphones and networking
equipment as well as embedded and automotive applications, where Arm has good exposure. This growth has
benefited Arm’s technology royalty revenue as it grows with industry sales. Industry growth also accelerated Arm’s
customers’ design activity, creating new opportunities for Arm to license its latest technologies and thus driving
non-royalty revenue (technology licensing revenue and software and services revenue). The industry is vulnerable toother external factors, including trade disputes and sanctions against specific companies, as well as the impact of
temporary component shortages; for example, some automotive manufacturers and smartphone OEMs could notsource sufficient numbers of chips resulting in delays in the production of cars and phones. If shipments ofconsumer electronic devices weaken, it may lead to lower Arm’s technology royalty revenue, and if customers
facing reduced revenues choose to delay licensing decisions, it may lead to lower technology non-royalty revenue.

26

SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 2021

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 in U.S. dollars.
(Millions of U.S. dollars)Nine months ended December 31
2020
2021
Change Change %Technology royalty
Technology non-royalty
Total net sales

944
517

1,149
896

205
379

21.7%
73.4%

1,461

2,045

584

40.0%

Net sales increased by $584 million (40.0%) year on year due to increases in both technology royalty revenue andtechnology non-royalty revenue.
Technology royalty revenue
Technology royalty revenue increased by $205 million (21.7%) year on year. Royalty revenues were driven by thestrong ramp in shipments of Arm-based 5G smartphones, deployment of networking equipment into 5G basestations, and Arm’s customers gaining share in multiple markets such as automotive and servers. In addition, Arm’s
customers are benefitting from the very high demand for computer chips enabling prices to increase, and as Arm’s
royalty revenue is often based on the price of the chips, Arm is also benefiting from higher chip prices.
Technology non-royalty revenue
Technology non-royalty revenue increased by $379 million (73.4%) year on year. This increase is primarily due tothe availability of more Arm technology following the period of accelerated R&D spending since Arm was acquiredby the Company. Over the past few years, Arm has increased investment in R&D, which has now resulted in a
product portfolio that has expanded the breadth of Arm technology to include processors optimized for servers,
automotive electronics, and AI acceleration. This has led to a wider range of customers licensing Arm technology,
as well as existing customers having more Arm technology to choose from, both of which are helping to drive
licensing revenues. This included licenses for processors used by customers intending to build Arm-based serverand PC chips, smartphones, networking equipment, autonomous systems such as industrial robotics and self-driving
vehicles and for AI enabled microcontrollers. In addition, over the past year, strong industry demand for Arm-based
chips has encouraged Arm’s customers to invest in new R&D projects to develop more chips and therefore
increased demand for Arm processor licenses.
Segment income
Segment income was ¥31,088 million, improving by ¥55,292 million year on year due to strong revenue growth.

27

SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 2021

OPERATIONSRoyalty units

12(Billion)
Nine-month period ended September 30
2020
2021
Royalty units as reported by Arm’s licensees

17.7

21.0

Change Change %
3.3

18.6%

Arm’s licensees reported shipments of 21.0 billion Arm-based chips in the nine-month period ended September 30,
2021. Arm’s unit shipments increased by 18.6% year on year, at a similar rate to shipments by the Arm-relevant
13part of the semiconductor industry which increased by 19.3% during the same period.
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
The first quarter

The third quarter: Arm already has over 95% share of the main chips in mobile devices and, over time,
has been successfully increasing royalties per chip.
: Arm introduced three new processors, Cortex-X2, Cortex-A710, and Cortex-A510,
based on Armv9, and three new graphics processors, Mali-G710, Mali-G510, andMali-G310, all targeting the smartphone and mobile computing segment.
: Mediatek Inc., Qualcomm Technologies, Inc. and Samsung Electronics Co., Ltd.
announced their first chips for smartphones based on Arm CPUs developed with the
Armv9 architecture. These chips should start to appear in smartphones in 2022.

Infrastructure
Opportunity
The first quarter

The second quarter

The third quarter: Arm has a growing share in networking infrastructure and a nascent share in data
center servers.
: ·Supercomputer Fugaku with Arm technology for servers, jointly developed by RIKEN
and Fujitsu Limited, has retained its number one ranking in the TOP500, a global
ranking based on calculation speed of supercomputers.
·Oracle Corporation announced that Oracle Cloud Infrastructure will include Armbased servers using chips from Ampere Computing LLC.
·NVIDIA Corporation and Marvell Technology, Inc. separately announced new 5G
networking infrastructure chips based on Arm processor technology.
: ·Cloudflare, Inc. announced a blueprint for a zero-emissions internet, assisted by the
deployment of low-power Arm-based technology. Cloudflare reported that it“achieved more than 50% improvement in requests per watt by deploying Arm
Neoverse-based processors in its edge servers.”: ·Alibaba announced Yitian 710, their first Arm-based chip for the data center,featuring 128 Armv9 cores.
·Amazon Web Services Inc. announced Graviton3, their next generation of Arm-based
chip for the data center, claiming 2-3x higher performance for certain workloads,
including cryptographic and machine learning, compared to Graviton2.

Automotive
Opportunity: 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.
28

SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 2021

The first quarter

The second quarter: Arm and leading automotive companies and technology providers, including Audi AG,
DENSO CORPORATION, and NXP Semiconductors N.V., have started a newcollaboration to create standards for self-driving vehicles.
: Arm introduced a new automotive design platform to enable the development ofsoftware-defined cars in the future; software can be downloaded to modify theperformance and functionality of a car.

IoT
Opportunity

The first quarter

The second quarter: For IoT to reach its full potential, it must be secure against hacking and robust against
faults. Arm has developed technology to secure and manage the data in IoT device
networks.
: Arm announced an initiative to help reduce the time to develop software for Armbased microcontrollers by enabling more code-reuse and code-sharing between
developers.
: Arm announced Total Solutions for IoT, an initiative which includes virtual
development boards hosted on AWS, allowing software to be developed in parallel to a
new chip design. This initiative could help reduce the time needed to develop an IoTproduct by up to two years.

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

29

SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 2021(e) Latin America Funds Segment
1. Recorded gain on investments (net) of ¥136.7 billion due to increases in the fair values of unlisted
portfolio companies.
2. As of the third quarter-end, SBLAF1 and SBLAF2 held a total of 84 investments, including five listed
portfolio companies. The investment cost totaled $5.9 billion with a fair value amounting to $8.7 billion.
(Millions of yen)
Nine months ended December 31
2020
2021
Gain on investments at Latin America Funds
Realized loss on investments
Unrealized gain on valuation of investments
Change in valuation for the fiscal year

Change %124,933
124,643
124,643

136,734(9,114)
144,795
136,761

11,801(9,114)
20,152
12,118

9.4%
16.2%
9.7%

219
71
(3,135)
(251)

8,034
(127)
364
816
(7,068)(1,155)

8,034
(346)
364
745
(3,933)(904)

125.5%
360.2%(43)

89(1,088)89(1,045)-

121,504

127,512

6,008

4.9%

Reclassified to realized loss recorded*1in the past fiscal year
Derivative gain (loss) on investments
Effect of foreign exchange translation
Other
Selling, general and administrative expenses
Finance cost
Derivative gain
(excluding gain (loss) on investments)
Other loss
Segment income (income before income tax)

ChangeNotes:* SoftBank Latin America Fund 1 has invested in one affiliated SPAC through the SPAC’s sponsor, which is the Company’s subsidiaryin this segment. The operating results of the SPAC, as a subsidiary of the Company, are included in this segment.
1. Unrealized gains and losses on valuation of investments recorded in past fiscal years related to the investments realized in the fiscal
year are reclassified as “realized gain (loss) on investments.”

OVERVIEW
Segment results include the results of the investments and operational activities of SoftBank Latin America Fund 1(SBLAF1) and SoftBank Latin America Fund 2 (SBLAF2), which are managed by the Company’s wholly owned
U.S. subsidiary SBLA Advisers Corp.
SBLAF1 and SBLAF2 were established with the objective of investing in companies using technologies in allindustries within rapidly developing Latin America. As of December 31, 2021, the Company has committed $5.0
14billion to SBLAF1 and $2.0 billion to SBLAF2.
15

In the second quarter, SoftBank Latin America Funds introduced a co-investment program with restricted rights
to receive distributions and preferred equity in the same way as SVF2. See “19. Related party transactions” under“(6) Notes to Condensed Interim Consolidated Financial Statements” in “3. Condensed Interim Consolidated
Financial Statements and Primary Notes” for details.
FINANCIAL RESULTS
Unrealized gain on valuation of investments (net) totaling ¥144,795 million was recorded mainly due to an increasein the fair value of unlisted portfolio companies, such as Kavak Holdings Limited, QUINTOANDAR, LTD., andCreditas Financial Solutions, Ltd. In contrast, SBLAF1 recorded realized loss on investments of ¥9,114 million due

30SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 2021

to the liquidation of two portfolio companies in the second quarter. These resulted in gain on investments of¥136,734 million and segment income of ¥127,512 million. As of the third quarter-end, SBLAF1 and SBLAF2 held
a combined total of 84 investments and invested a cumulative total of $5.9 billion, with a fair value of $8.7 billion.

For a list of portfolio companies of SoftBank Latin America Funds, see the Data Sheets in “Materials” under “Earnings Results
Briefing” to be posted in a few days on the Company’s website at https://group.softbank/en/ir/presentations/.

31

SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 2021(f) Other(Millions of yen)
Nine months ended December 31
2020
2021
Net sales
Segment income (income before income tax)
Depreciation and amortization
Gain on investments
Finance cost
Income on equity method investments

ChangeChange %192,665
13,690(31,301)
103,709(11,992)
19,489201,237
25,613(23,683)
41,530(10,194)
19,524

8,572
11,923
7,618(62,179)
1,798
35

4.4%
87.1%
(24.3%)(60.0%)(15.0%)
0.2%

681(3,479)(4,160)-Derivative gain (loss)(excluding gain (loss) on investments)

Note: Since the fourth quarter of the previous fiscal year, the ISG business (including Treasury Data, Inc.) is managed separately fromthe Arm business and its operating results are therefore included in “Other” instead of the Arm segment. In the third quarter,
SBG’s shares of PayPay Corporation were transferred to SVF2. As PayPay Corporation continues to be a subsidiary of theCompany, its operating results are included in “Other.”

Fortress Investment Group LLC (“Fortress”) and PayPay Corporation recorded losses before income tax of ¥48,321
million and ¥46,406 million, respectively. This was offset by a gain of ¥72,936 million relating to the loss of controlof Boston Dynamics, Inc. following its sale in June 2021 and investment gain of ¥49,153 million that was recorded
mainly due to an increase in the fair value of an investee of a U.K. subsidiary engaged in the renewable energy
business, resulting from its listing and subsequent strong share price performance. As such, segment income stoodat ¥25,613 million.
For details regarding the gain on loss of control of Boston Dynamics, Inc., see “7. Disposal group classified asheld for sale” under “(6) Notes to Condensed Interim Consolidated Financial Statements” in “3. Condensed Interim
Consolidated Financial Statements and Primary Notes.”
An overview of these results and operations follows.
·Fortress
Fortress recorded loss on investments of ¥23,839 million due to a decrease in the fair value of certain investments,
resulting in a loss before income tax of ¥48,321 million.
·PayPay Corporation
PayPay Corporation, which is engaged in smartphone payment services in Japan, recorded loss before income taxof ¥46,406 million. Although revenue increased mainly as a result of growth in gross merchandise volume and anincrease in payment fees following the introduction of payment fees to small and medium-sized merchants in
October 2021, expenses also increased due to campaigns aimed at acquiring users and promoting their use, as well
as for the retention and expansion of stores where the service is available. PayPay Corporation’s payment services
continued to see strong growth, with the number of payments for the period reaching 2,630 million, a 1.8-foldincrease year on year.
Results of PayPay Corporation included in “Other”(Millions of yen)
Nine months ended December 31
2020
2021
Net sales
Loss before income taxes

19,790(40,920)32

44,735(46,406)

ChangeChange %24,945(5,486)126.0%-

SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 2021

(2) Overview of Financial Position
1. Status of investment assets◆ Carrying amount of investments from SVF1 and SVF2 totaled ¥15,698.2 billion, an increase of*1¥2,051.4 billion from the previous fiscal year-end- Decrease at SVF1 by ¥1,865.1 billion: The balance decreased by $16.0 billion mainly due to sales ofinvestments and $7.3 billion due to decreases in the fair value of investments held at the third quarterend, which was partially offset by an increase of $2.7 billion due to new and follow-on investments.
- Increase at SVF2 by ¥3,916.6 billion: The balance increased by $34.0 billion due to new and follow-on
investments.
◆ Carrying amount of investment securities of ¥3,871.7 billion, an increase of ¥164.9 billion from theprevious fiscal year-end- T-Mobile shares: The balance decreased by ¥661.6 billion from the previous fiscal year-end mainly due
to the sale to Deutsche Telekom. Deutsche Telekom shares were received in return for the sale (third
quarter-end balance: ¥479.7 billion).
- SoftBank Latin America Funds: The balance increased by ¥535.7 billion from the previous fiscal yearend, mainly due to new investments.
◆ Carrying amount of stocks and other instruments held at asset management subsidiaries decreased to¥481.5 billion mainly due to sales, from ¥2,182.5 billion at the previous fiscal year-end.
- The balance of investments from asset management subsidiaries was ¥387.0 billion, a decrease of ¥368.3
billion from the previous fiscal year-end.
- The balance of securities pledged as collateral in asset management subsidiaries was ¥94.6 billion, adecrease of ¥1,332.7 billion from the previous fiscal year-end.
2. Procured funds in an agile manner to meet funding needs for debt repayment and new investments
1
while keeping SBG’s LTV below 25%◆ Interest-bearing debt of SBG increased by ¥1,214.4 billion from the previous fiscal year-end- The Company issued domestic hybrid bonds of ¥405.0 billion, domestic subordinated bonds of ¥500.0
billion, and foreign currency-denominated straight bonds of $3.85 billion and €2.95 billion. Meanwhile,
the Company also redeemed domestic hybrid bonds of ¥455.6 billion and domestic subordinated bonds of¥361.6 billion.
◆ Financial liabilities related to sale of shares by prepaid forward contracts increased by ¥1,185.0 billion
from the previous fiscal year-end. Borrowings at SVF2 increased by ¥534.3 billion from the previous
fiscal year-end, due to loans to be used to manage its liquidity.
Note:
1. Investments from SVF1 and SVF2 do not include their investments in the Company’s subsidiaries or investments that are transferredfrom the Company to the funds and continue to be accounted for using the equity method (and included in “investments accounted
for using the equity method”) prior to and after the transfer.

(Millions of yen)
ChangeChange %March 31, 2021

December 31, 2021

Total assets
Total liabilities

45,750,453
33,794,860

48,242,890
35,396,823

2,492,437
1,601,963

5.4%
4.7%

Total equity

11,955,593

12,846,067

890,474

7.4%

33

SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 2021

(a) Assets(Millions of yen)
ChangeMarch 31, 2021

December 31, 2021

Cash and cash equivalents
Trade and other receivables

4,662,725
2,216,434

4,618,766
2,299,480(43,959)
83,046

Investments from asset
management subsidiaries

658,227

198,584(459,643) A

Securities pledged as collateral inasset management subsidiaries

1,427,286

94,560(1,332,726) B

Derivative financial assets inasset management subsidiaries
Derivative financial assets
Other financial assets
Inventories
Other current assets
Assets classified as held for sale
Total current assets
Property, plant and equipment
Right-of-use assets
Goodwill
Intangible assets
Costs to obtain contracts

188,056
383,315
671,907
126,830
446,739
38,647
10,820,166
1,668,578
1,147,020
4,684,419
2,308,370
246,996

154,887
1,218,721
606,862
154,262
242,184-(33,169) C
835,406 D(65,045)
27,432(204,555) E(38,647) F

9,588,306
1,771,180
961,619
4,720,884
2,402,830
295,003(1,231,860)
102,602(185,401)
36,465
94,460 G
48,007

Investments accounted for using
the equity method

4,349,971

4,908,746

558,775 H

Investments from SVF1 and SVF2
accounted for using FVTPL
SVF1
SVF2
Investment securities
Derivative financial assets
Other financial assets
Deferred tax assets
Other non-current assets
Total non-current assets

13,646,774
12,403,286
1,243,488
3,706,784
908,660
1,919,262
206,069
137,384
34,930,287

15,698,201
10,538,143
5,160,059
3,871,726
1,238,329
2,472,121
173,469
140,476
38,654,584

2,051,427 I(1,865,143)
3,916,571
164,942 J
329,669 K
552,859(32,600)
3,092
3,724,297

Total assets

45,750,453

48,242,890

2,492,437

34

SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 2021

Reasons for changes by primary component
Components
Current assets
A Investments from asset
management subsidiaries

Main reasons for changes from the previous fiscal year-end
Listed stocks held by SB Northstar decreased primarily due to sales.

B Securities pledged as collateral Securities pledged as collateral decreased due to SB Northstar’s sale ofinvestments.
in asset management
subsidiaries
C Derivative financial assets inasset management subsidiaries

The fair value of long call options of listed stocks held by SB Northstar
decreased.

D Derivative financial assets

Derivative financial assets related to prepaid forward contracts using Alibaba
shares increased by ¥847,298 million, due to recording derivative gains,
reclassifying derivative financial assets with a remaining term of one year orless from non-current assets, and newly concluded prepaid forward contracts.

E Other current assets

Withholding income tax in relation to dividends paid from SBGJ to SBG in
the previous fiscal year was refunded in July 2021, resulting in a decrease of¥246,667 million.

F Assets classified as held for sale

Boston Dynamics, Inc.’s assets were presented in this category at theprevious fiscal year-end in conjunction with the classification of thecompany in the disposal group classified as held for sale; however, theseassets were derecognized following the completion of the sale in the firstquarter.

Non-current assets
G Intangible assets

H Investments accounted forusing the equity method

Yahoo Japan Corporation entered into an agreement with Oath Holdings Inc.
and other parties, with whom it had previously entered into a license
agreement, to acquire trademarks in Japan related to Yahoo!, Yahoo!
JAPAN, etc. for ¥178.5 billion. Intangible assets increased as a result of thisacquisition.
In addition to recording gain on equity method investments, the consolidated
carrying amount for Alibaba increased due to the weaker yen against
Chinese yuan at the third quarter-end.

35

SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 2021

Components
I Investments from SVF1 andSVF2 accounted for using
FVTPL

Main reasons for changes from the previous fiscal year-end·The carrying amount of investments at SVF1 decreased by ¥1,865.1 billion.
This reflected a decrease of $16.0 billion due to the sale of investments anda decrease of $7.3 billion due to decreases in the fair values of portfolio
companies held at the third quarter-end. These were partially offset by anincrease of $2.7 billion due to new and follow-on investments in existing
portfolio companies.
·The carrying amount of investments at SVF2 increased by ¥3,916.6 billion.
This reflected an increase of $34.0 billion due to new and follow-on
investments in existing portfolio companies and $0.9 billion due toincreases in the fair value of portfolio companies held at the third quarterend. These were partially offset by a decrease of $1.8 billion due to the saleof investments.
For details of the status of investments at SVF1 and SVF2, see “(b) SoftBank
Vision Funds Segment” under “b. Results by Segment” in “(1) Overview ofResults of Operations.”

J Investment securities·The carrying amount of T-Mobile shares decreased by ¥661,616 million
from the previous fiscal year-end. This mainly reflected the sale to Deutsche
Telekom of 45.4 million T-Mobile shares held by the Company due toDeutsche Telekom’s partial exercise of call options for T-Mobile shares.
·The Company received 225 million Deutsche Telekom shares as
consideration for the sale of T-Mobile shares (third quarter-end balance:¥479,741 million).
·The carrying amount of investments from SoftBank Latin America Funds
increased by ¥535,670 million due to new and follow-on investments, aswell as increases in the fair values of portfolio companies (third quarter-end
balance: ¥976,678 million).
·The shares of WeWork, InMobi Pte. Ltd., Cybereason Inc., and Ola Electric
Mobility Private Limited were transferred to SVF2 and reclassified as“investments from SVF1 and SVF2 accounted for using FVTPL.” See“Investments transferred from the Company to SVF2” under “FINANCIAL
RESULTS” in “(b) SoftBank Vision Funds Segment” in “b. Results by
Segment” in “(1) Overview of Results of Operations.”

K Derivative financial assets·Derivative financial assets related to prepaid forward contracts using
Alibaba shares increased by ¥125,666 million due to recording of derivative
gains and newly concluded prepaid forward contracts, while assets with aremaining term of one year or less were reclassified as current assets.

36

SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 2021

(Reference) Cash and cash equivalents by entity
March 31, 2021
SoftBank Group Corp. / Wholly owned
subsidiaries conducting fund procurement/ SB Northstar
SoftBank Group Corp.

(Millions of yen)
December 31, 2021
Change2,202,778
1,948,177

2,128,759
1,896,718(74,019)(51,459)

33,320221,281

15,769216,272(17,551)(5,009)67,58063,47025,89556,677
83,21324,478(10,903)
19,743(1,417)

Others

302,539
420,941
861,412718,110314,725
453,256
895,243
662,415

12,18632,31533,831(55,695)

Total

4,662,725

4,618,766(43,959)

Wholly owned subsidiaries conducting fundprocurement
SB Northstar
SoftBank Vision Funds segment
SVF1
SVF2
SBIA, SBGASoftBank segment
SoftBank Corp.
*1
Z Holdings Corporation*2
Others

Notes:
1. Includes Yahoo Japan Corporation and LINE Corporation.
2. Includes PayPay Bank Corporation, whose balance of cash and cash equivalents was ¥386,985 million at the third quarter-end.

37

SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 2021(b) Liabilities
March 31, 2021

December 31, 2021

(Millions of yen)
ChangeInterest-bearing debt
Lease liabilities
Deposits for banking business
Trade and other payables
Derivative financial liabilities
Other financial liabilities
Income taxes payables
Provisions
Other current liabilities
Liabilities directly relating to assets
classified as held for sale
Total current liabilities
Interest-bearing debt
Lease liabilities
Third-party interests in SVF1 and SVF2
Derivative financial liabilities
Other financial liabilities
Provisions
Deferred tax liabilities
Other non-current liabilities
Total non-current liabilities

7,735,239
307,447
1,109,240
1,970,275
322,21365,958391,930
24,939952,443

7,262,345
257,072
1,279,748
1,901,154
86,456263,381
96,474
23,119786,846(472,894)(50,375)
170,508(69,121)(235,757) A
197,423(295,456) B(1,820)(165,597) C

11,271
12,890,955
10,777,736
727,554
6,601,791
32,692415,407
110,586
2,030,651
207,488
20,903,905

11,956,595
13,401,456
653,046
6,122,880
120,794
441,007
113,476
2,400,177
187,392
23,440,228(11,271) D(934,360)
2,623,720(74,508)(478,911)
88,10225,6002,890
369,526 E(20,096)
2,536,323

Total liabilities

33,794,860

35,396,823

1,601,963

38

SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 2021

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 Derivative financial liabilities·Derivative financial liabilities decreased by ¥130,592 million mainly due tothe partial exercise of call options for T-Mobile shares by Deutsche
Telekom (the third quarter-end balance: ¥74,229 million).
·With the completion of the tender offer for WeWork shares in April 2021,
the Company reversed a derivative financial liability of ¥76,823 million
recorded at the previous fiscal year-end as the difference between thevaluation amount of common stock and preferred stock expected to beacquired and the planned acquisition amount.
See “(1) Option contracts” and “(3) Forward contracts” under “11.
Financial instruments” in “(6) Notes to Condensed Interim Consolidated
Financial Statements” in “3. Condensed Interim Consolidated Financial
Statements and Primary Notes” for details.

B Income taxes payables

SBGJ paid income tax of ¥197,432 million based on taxable income
including a gain on sale of shares of SoftBank Corp. generated in theprevious fiscal year.

C Other current liabilities

Withholding income tax of ¥245,053 million was paid in relation todividends paid from SBGJ to SBG in the previous fiscal year.

D Liabilities directly relating toassets classified as held for sale

Boston Dynamics, Inc.’s liabilities were presented in this category at theprevious fiscal year-end in conjunction with the classification of thecompany in the disposal group classified as held for sale; however, theseliabilities were derecognized following the completion of the sale in the firstquarter.

Non-current liabilities
E Deferred tax liabilities

Deferred tax liabilities increased due to an increase in the fair value ofderivative financial assets related to prepaid forward contracts using Alibaba
shares concluded in the fiscal years ended March 31, 2020 and March 31,
2021, as well as in the period.

39

SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 2021

(Reference) Interest-bearing debt and lease liabilities (total of current liabilities and non-current liabilities)
March 31, 2021

December 31, 2021

(Millions of yen)
Change

SoftBank Group Corp. / Wholly owned
subsidiaries conducting fund procurement /SB Northstar
SoftBank Group Corp.
Borrowings
Corporate bonds
Lease liabilities
Commercial paper

12,984,650
6,158,350
1,152,934
4,745,549
13,367
246,500

13,805,201
7,372,704
1,397,487
5,674,731
12,386288,100

820,551
1,214,354
244,553
929,182 A(981)
41,600Wholly owned subsidiaries conducting
fund procurement*1
Borrowings

4,959,779
1,874,040

6,157,142
1,886,371

1,197,363
12,331

3,085,739
1,866,521
1,866,521

4,270,771
275,355
275,355

1,185,032 C(1,591,166)(1,591,166) D

444,227444,227363
363

665,604
665,604
534,329534,329315
315

221,377
221,377
534,329534,329 E
(48)
(48)

4,166,323
3,037,229
260,000
706,393
162,701
1,030,980
442,406
543,992
44,582494,747

4,382,573
3,210,317
439,349
596,506
136,401
1,189,116
482,598
618,892
37,62650,000596,268

216,250
173,088
179,349(109,887)(26,300)
158,136
40,19274,900(6,956)50,000101,521334,917
91,769310,204
90,309(24,713)(1,460)19,547,976

21,573,919

2,025,943

Financial liabilities relating to sale of sharesby prepaid forward contracts
SB Northstar
Borrowings
SoftBank Vision Funds segment
SVF1
Borrowings
SVF2
Borrowings
SBIA
Lease liabilities
SoftBank segment
SoftBank Corp.
Borrowings
Corporate bonds
Lease liabilities
Commercial paper*2
Z Holdings Corporation
Borrowings
Corporate bonds
Lease liabilities
Commercial paper
Other
OthersOther interest-bearing debt
Lease liabilities
Total

B

Notes:
1. The interest-bearing debt of wholly owned subsidiaries conducting fund procurement is non-recourse to SBG. However, $2.65 billionof borrowings made using T-Mobile shares is exceptionally guaranteed by SBG to a limit of $0.7 billion. As a precondition for SBG
to fulfill its guarantee obligations, the lenders are obligated to first recover the amount to the maximum extent possible from Alibaba
shares that have been pledged as collateral.
2. Includes Yahoo Japan Corporation and LINE Corporation.

40

SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 2021

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

Details

SBG / Wholly owned subsidiaries conducting fund procurement / SB Northstar
SBG
A Corporate bonds ·Domestic hybrid bonds of ¥405.0 billion were issued in the first quarter, while ¥455.6
billion was redeemed in the second quarter.
·Foreign currency-denominated straight bonds of $3.85 billion and €2.95 billion were issued
in the second quarter.
·Domestic subordinated bonds of ¥500.0 billion were issued in the first quarter, while ¥361.6
billion was redeemed in the third quarter.
Wholly owned subsidiaries conducting fund procurement
B Borrowings
Through Alibaba shares·$1.88 billion was borrowed through margin loans in the first quarter.
·$10.0 billion was repaid and $6.0 billion was newly borrowed in margin loans in the third
quarter.
Through T-Mobile shares·In the second quarter, $2.65 billion was borrowed through a margin loan, and in the samequarter, $4.38 billion, which was borrowed through a margin loan in the previous fiscal
year, was repaid early.
Through Deutsche Telekom shares·€2.64 billion was raised in the third quarter through collar transactions.
See “Note 3” and “Note 5” under “(1) Components of interest-bearing debt” in “9. Interestbearing debt” in “(6) Notes to Condensed Interim Consolidated Financial Statements” in “3.
Condensed Interim Consolidated Financial Statements and Primary Notes” for details.
C Financial liabilities Through Alibaba shares
relating to sale of ·Certain collar contracts, among prepaid forward contracts, were terminated early and $2.86
billion was settled in cash in the first quarter. In addition, $3.0 billion was newly raised byshares by prepaid
forward contracts concluding new collar contracts.
·Certain details of collar contracts, among prepaid forward contracts, were amended in thesecond quarter. In addition, $7.35 billion was newly raised by concluding new collar andforward contracts.
·Certain prepaid forward contracts were settled in kind by delivering Alibaba shares.
Consequently, financial liabilities of ¥179,309 million related to sale of shares by prepaid
forward contracts was derecognized.
·$2.21 billion was newly raised in the third quarter by concluding prepaid forward contracts(forward contracts).
See “(2) Transactions for sale of Alibaba shares by prepaid forward contracts” in “9. Interestbearing debt” in “(6) Notes to Condensed Interim Consolidated Financial Statements” in “3.
Condensed Interim Consolidated Financial Statements and Primary Notes” for details.
Through T-Mobile shares·$1.81 billion was raised in the second quarter through prepaid forward contracts (collar
contracts).
SB Northstar
D Borrowings·Short-term borrowings decreased by ¥935,709 million.
·Repaid $6.0 billion in margin loans using Alibaba shares.

41SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 2021

Components
Details
SoftBank Vision Funds segment
SVF2
E Borrowings·Borrowed $3.69 billion in the private credit market secured through indirect pledges over its
portfolio (the “Term Loan Facility”). This facility provides a liquidity management tool for
SVF2.
·Borrowings made for the purpose of monetizing investments (the “Portfolio Financing
Facility”) increased by $1.0 billion.

(c) Equity
March 31, 2021

December 31, 2021

(Millions of yen)
Change238,7722,618,504
496,876
8,810,422(2,290,077)
338,329

238,772
2,611,538
496,876
6,633,108(133,566)
1,267,979(6,966)(2,177,314) A
2,156,511 B
929,650 C

267

-

(267)

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

10,213,093
1,742,500

11,114,707
1,731,360

901,614(11,140)

Total equity

11,955,593

12,846,067

890,474

Common stock
Capital surplus
Other equity instruments
Retained earnings
Treasury stock
Accumulated other comprehensive income
Accumulated other comprehensive income
directly relating to assets classified as held for sale

Reasons for changes by primary component
Components
A Retained earnings

Main reasons for changes from the previous fiscal year-end·Net income attributable to owners of the parent of ¥392,617 million wasrecorded.
*1·¥2,475,817 million was deducted following the retirement of 366,860,600
shares of treasury stock in May 2021 (equivalent to 17.6% of the total number
of issued shares as of April 30, 2021).

B Treasury stock·SBG repurchased 25,980,400 of its own shares for ¥257,777 million from April
1 to May 12, 2021 in accordance with a Board resolution on July 30, 2020,
completing the share repurchase under that resolution. Moreover, SBG
repurchased 11,949,400 of its own shares for ¥70,676 million from November
10 to December 23, 2021 in accordance with a Board resolution on November
8, 2021 to repurchase the Company’s own shares up to a maximum amount of¥1 trillion.
·The Company retired treasury stock in May 2021.

C Accumulated othercomprehensive income·Exchange differences from the translation of foreign operations, which arise
from translating overseas subsidiaries and associates into yen, increased by¥914,299 million due to a weaker yen against the U.S. dollar and Chinese yuan
compared to the previous fiscal year-end.

Note:
1. The number of shares retired is the same as the number of shares acquired from the share repurchase (the “Share Repurchase”)
conducted in accordance with respective resolutions of the Board of Directors in March, May, June, and July 2020. However,
because the retirement amount is calculated based on the carrying amounts, including treasury stock held by the Company prior to
the Share Repurchase, the retirement amount differs from the total repurchase amount of the Share Repurchase.

42SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 2021

(3) Overview of Cash Flows
1. Cash flows from operating activities
Increase in cash inflows of ¥1,907.4 billion mainly due to sale of investments by SB Northstar
2. Cash flows from investing activities◆ Cash outflow totaled ¥2,843.6 billion (net) from investing activities mainly as a result of new
investments by SVF2 and sale of investments by SVF1.
- Payments for acquisition of investments by SVF1 and SVF2: ¥3,533.0 billion·Payments for acquisition of investments by SVF2 of ¥3,359.7 billion- Proceeds from sale of investments by SVF1 and SVF2: ¥1,734.2 billion·Proceeds from sale of investments by SVF1 of ¥1,575.6 billion due to partial sale of shares of 14 portfolio
companies including Uber, DoorDash, and Coupang
3. Cash flows from financing activities◆ Cash inflow of ¥311.0 billion (net) from financing activities through various actions taken for debt
repayment and new investments- Proceeds from issuance of corporate bonds and payments for redemption of corporate bonds·SBG issued domestic hybrid bonds of ¥405.0 billion, foreign currency-denominated straight bonds of¥814.7 billion ($3.85 billion and €2.95 billion) respectively, and domestic subordinated bonds of ¥500.0
billion.
·SBG redeemed domestic hybrid bonds of ¥455.6 billion and domestic subordinated bonds of ¥361.6 billion.
- Proceeds from procurement using Alibaba shares·Raised a total of $12.56 billion through new prepaid forward contracts.
·Raised a total of $1.88 billion through margin loans in the second quarter. Repaid existing margin loans of$10.0 billion and newly raised $6.0 billion in the third quarter, settling $4.0 billion (net)- Proceeds from borrowings by SVF1 and SVF2 and distribution/repayment from SVF1 to third-party
investors·SVF2 borrowed $5.59 billion and SVF1 borrowed $3.0 billion through the Term Loan Facility and the*1
Portfolio Financing Facility.
·SVF1 distributed ¥976.0 billion to third-party investors.
- Repayment of borrowings by SB Northstar·Repaid ¥942.2 billion (net) in short-term borrowings and $6.0 billion in margin loans
Note:
1. See “E Borrowings” under “SVF2” in “SoftBank Vision Fund segment” in “(Reference) Interest-bearing Debt and Lease Liabilities(Total of Current Liabilities and Non-current Liabilities)” in (b) Liabilities in “(2) Overview of Financial Position” for details of eachfacility.

(Millions of yen)
Nine months ended December 31
2020
2021
Cash flows from operating activities
Cash flows from investing activities
Cash flows from financing activities(72,971)(805,934)
2,055,659

2,408,979(2,843,565)
311,028

Change2,481,950(2,037,631)(1,744,631)(a) Cash Flows from Operating Activities
Cash flows from operating activities improved by ¥2,481,950 million year on year, from net cash used to net cash
provided. This is mainly due to sale of investments by SB Northstar, which had an incremental impact on cash
inflows of ¥1,907,441 million for the period.
The amount of income taxes paid (cash outflow) increased by ¥300,090 million year on year. This was mainly
due to payment in the first quarter of corporate taxes on taxable income at SBGJ including gains on the sale of
SoftBank Corp. shares generated in the previous fiscal year, as well as payment of withholding income tax on
dividends from SBGJ to SBG. Of this, the withholding income tax was refunded in the second quarter.

43

SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 2021

(b) Cash Flows from Investing Activities
Primary components
Components
Payments for acquisition of
investments¥(830,231) million

Primary details·SoftBank Latin America Funds made new and follow-on investments
totaling ¥363,497 million ($3.29 billion).
·The Company acquired preferred stock and common stock of WeWork bytender offer, completed in April 2021, for ¥101,377 million.
·The unpaid acquisition price of ¥115,249 million for shares of a newcompany established through the business integration of Z Holdings
Corporation and LINE Corporation was paid after the shares were acquired
from non-controlling interests in the previous fiscal year.

Payments for acquisition of·SVF2 made new and follow-on investments totaling ¥3,359,738 million
investments by SVF1 and SVF2 ($30.26 billion).
·SVF1 made follow-on investments totaling ¥173,277 million ($1.56 billion).
¥(3,533,015) million
Proceeds from sales of·SVF1 sold a portion of its shares in 14 portfolio companies, including Uber,
investments by SVF1 and SVF2 DoorDash, and Coupang.
¥1,734,173 million·SVF2 sold all of its shares in one portfolio company and a portion of its
shares in KE Holdings.
Purchase of property, plant andequipment and intangible assets¥(690,535) million·Yahoo Japan Corporation purchased intangible assets following an executionof an agreement with Oath Holdings Inc. and other parties, with whom it
had previously entered into a license agreement, to acquire trademarks inJapan related to Yahoo! and Yahoo! JAPAN etc. and paid ¥178.5 billion.
·SoftBank Corp. purchased telecommunications equipment.

Proceeds from withdrawal ofrestricted cash
¥359,038 million

In April 2021, restricted cash (a deposit of $3.3 billion required for the earlytermination of a portion of the collar contracts out of the prepaid forward
contracts using Alibaba shares) recorded at the previous fiscal year-end waswithdrawn. In the same month, a payment of ¥313,411 million ($2.86 billion)
was completed for the early termination, and the cash outflow associated withthe transaction was recorded as “repayment of interest-bearing debt” (cashflows from financing activities).

44SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 2021

(c) Cash Flows from Financing Activities
Primary components
Components
Proceeds in short-term
interest-bearing debt, net*2¥(913,287) million(Proceeds and payments for interest-

Primary details·Short-term borrowings at SB Northstar decreased by ¥942,150 million (net).
·SoftBank Corp.’s short-term borrowings decreased by ¥98,396 million (net).
·PayPay Card Corporation and LINE Corporation issued commercial paper of¥71,500 million (net) and ¥50,000 million (net), respectively.

bearing debt (current liabilities) with
fast turnover and short maturities)

Proceeds from interest-bearing debt (total of A through C below)¥9,453,135 million
A Proceeds from borrowings ·SBG made short-term borrowings of ¥2,120,650 million.
*3¥5,859,639 million·The Company’s wholly owned subsidiaries conducting fund procurement
borrowed a total of ¥205,594 million ($1.88 billion) through margin loans
using Alibaba shares; ¥292,494 million ($26.5 billion) through margin loansand ¥138,088 million ($1.25 billion) through a bridge loan using T-Mobile
shares; and ¥346,265 million (€2.64 billion) through collar transactions
using Deutsche Telekom shares.
·SVF2 borrowed ¥419,070 million ($3.69 billion) through the Term Loan
*1
Facility and ¥209,470 million ($1.90 billion) through the Portfolio*1
Financing Facility. SVF1 borrowed ¥332,036 million ($3.0 billion) through*1
the Portfolio Financing Facility.
·SoftBank Corp. issued commercial paper of ¥137,400 million and procured¥875,095 million mainly through the securitization of installment salesreceivables and sale-and-leaseback transactions.
·Z Holdings Corporation borrowed ¥114,200 million as short-termborrowings and a further ¥150,000 million in other borrowings.
B Proceeds from issuance of ·SBG issued domestic hybrid bonds of ¥405,000 million, foreign currencycorporate bonds
denominated straight bonds totaling ¥814,745 million ($3.85 billion and¥2,000,245 million€2.95 billion), and domestic subordinated bonds of ¥500,000 million.
·SoftBank Corp. issued domestic straight bonds of ¥180,000 million.
·Z Holdings Corporation issued domestic straight corporate bonds of¥100,000 million.
C Proceeds fromprocurement by prepaid
forward contracts using
shares¥1,593,251 million

The Company’s wholly owned subsidiaries conducting fund procurement
raised an aggregate amount of ¥1,393,400 million ($12.56 billion) throughprepaid forward contracts using Alibaba shares. An aggregate amount of¥199,851 million ($1.81 billion) was also raised through prepaid forward
contracts using T-Mobile shares.

45SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 2021

Components
Primary details
Repayment of interest-bearing debt (total of D through F below)¥(6,381,610) million
D Repayment of borrowings ·SBG repaid short-term borrowings of ¥1,882,638 million.
*3¥(5,219,906) million·SB Northstar repaid a margin loan using Alibaba shares of ¥662,820 million($6.0 billion).
·The Company’s wholly owned subsidiaries conducting fund procurement
repaid existing borrowings of $10.0 billion and newly borrowed $6.0 billion
in the third quarter. As the settlement was made on a net basis, ¥454,680
million ($4.0 billion) was recorded as a cash outflow for repayment ofborrowings. In addition, they also repaid a margin loan early using TMobile shares of ¥483,772 million ($4.38 billion), which was borrowed in
the previous fiscal year. A bridge loan of ¥142,000 million ($1.25 billion)
borrowed in the second quarter, was also repaid.
·SVF1 and SVF2 repaid ¥139,552 million ($1.24 billion) and ¥99,174
million ($0.9 billion), respectively, in borrowings made under the Portfolio*1
Financing Facility.
·SoftBank Corp. repaid ¥112,700 million in commercial paper and ¥604,641
million in borrowings made mainly through the securitization of installment
sales receivables and sale-and-leaseback transactions.
·LINE Corporation repaid ¥153,272 million of borrowings.
E Redemption of corporate
bonds¥(842,217) million

SBG redeemed domestic hybrid bonds of ¥455,600 million and domestic
subordinated bonds of ¥361,617 million.

F Payment of settlement of
The Company paid ¥313,411 million ($2.86 billion) in connection with early
prepaid forward contracts termination of a portion of the collar contracts among the prepaid forward¥(319,487) million
contracts using Alibaba shares in April 2021.
Distribution/repayment from
SVF1 to third-party investors¥(975,999) million

SVF1 made distributions to third-party investors.

Purchase of treasury stock¥(328,463) million

SBG repurchased 25,980,400 of its own shares for ¥257,777 million from
April 1 to May 12, 2021 in accordance with a Board resolution on July 30,
2020, completing the share repurchase under that resolution. Moreover, SBG
repurchased 11,949,400 of its own shares for ¥70,676 million from
November 10 to December 23, 2021 in accordance with a Board resolution on
November 8, 2021 to repurchase the Company’s own shares up to a maximum
amount of ¥1 trillion.

Cash dividends paid to
non-controlling interests¥(271,052) million

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

Notes:
1. See “E Borrowings” under “SVF2” in “SoftBank Vision Fund segment” in “(Reference) Interest-bearing Debt and Lease Liabilities(Total of Current Liabilities and Non-current Liabilities)” in (b) Liabilities in “(2) Overview of Financial Position” for details of eachfacility.
2. “Proceeds in short-term interest-bearing debt, net” presents cash flows from financing activities that meet the requirement of“Reporting cash flows on a net basis” under IFRSs.
3. “Proceeds from borrowings” and “repayment of borrowings” include proceeds of ¥3,115,054 million and outlays of ¥2,578,723
million, respectively, related to borrowings with a contracted term of one year or less.

46

SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 2021

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

47

SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 2021

Notes regarding “1. Overview of Results of Operations”
1

2

3
4

5
6
7
8

9
10
11
12

13
14
15

The ratio of liabilities to holding assets, calculated as adjusted net interest-bearing debt divided by equity value of holdings.
The Company strives to maintain this ratio below 25% in normal times in financial markets, with an upper threshold of 35% intimes of emergency. Equity value of holdings and adjusted net interest-bearing debt each exclude amounts to be settled atmaturity or borrowings that are part of asset-backed finance. The calculation of adjusted net interest-bearing debt also
excludes, from the Company’s consolidated figures, interest-bearing debt and cash and cash equivalents, etc. attributable tolisted subsidiaries such as SoftBank Corp. and Z Holdings Corporation, as well as entities managed on a self-financing basis,such as SoftBank Vision Fund 1, SoftBank Vision Fund 2, SoftBank Latin America Funds, Arm, PayPay Corporation, andFortress Investment Group, along with SB Northstar.
Includes a share exchange. In the first quarter, SVF1 exchanged all of its shares in PT Tokopedia (“Tokopedia”) for shares in
GoTo, a newly formed company as a result of merger between Tokopedia and PT Aplikasi Karya Anak Bangsa. This shareexchange is treated as a full exit (entire sale) from the investment and an acquisition of a new investment, with the sale priceand acquisition cost being recorded in gross, respectively, and with the difference between the acquisition cost of shares
initially held and sale price (acquisition cost of the exchanged shares) being recorded as realized gain and loss on theinvestments.
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 (the Company’s economic interests in
Alibaba as of September 30, 2021: 24.90%) for each reporting period on a three-month time lag because it is impractical toalign reporting periods with Alibaba due to contracts with the company, among others. Necessary adjustments are made toreflect significant transactions and events announced by Alibaba during the period on a three-month time lag.
As of the third quarter-end, only Masayoshi Son, SBG’s Representative Director, Corporate Officer, Chairman & CEO, invests
in MgmtCo. Participation by members of management other than Masayoshi Son was undecided as of January 31, 2022;
however, such participation is planned for the future.
For the nature of equity and preferred equity, see “(1) Introduction of Co-investment Program with Restricted Right to Receive
Distributions and Preferred Equity to SVF2” under “4. SoftBank Vision Funds business” in “(6) Notes to Condensed Interim
Consolidated Financial Statements” in “3. Condensed Interim Consolidated Financial Statements and Primary Notes.”
As of the third quarter-end, none of the investment amounts from MgmtCo has been paid.
SVF2 LLC’s receivables include the transaction amounts incurred in connection with the acceptance of MgmtCo’s capital
contribution. Such transaction amounts include (i) MgmtCo's interest of 17.25% of the aggregate of the initial acquisition costof investments held by SVF2 LLC and amounts of contributions made by the Company to SVF2 to meet other costs, (ii)increase in fair market value of the investments from its initial acquisition cost at SVF2 to June 30, 2021 multiplied by
MgmtCo's interest of 17.25% and (iii) adjustments equivalent to the interest incurred for the period from the Company's
contribution to SVF2 until June 30, 2021.
For investments outside the scope of the co-investment program, see the Data Sheets in “Materials” under “Earnings Results
Briefing” on the Company’s website at https://group.softbank/en/ir/presentations/.
Drawn capital of SVF1 excludes the amount repaid to limited partners due to investment plan changes and other reasons after
the capital was drawn.
After deducting transaction fees, etc.
This analysis is based on the actual shipments of royalty units (chips incorporating Arm technology) by Arm licensees for thenine-month period ended September 30, 2021, as reported by licensees in royalty reports. Arm’s licensees report their actual
shipments of royalty units one quarter in arrears, and therefore, the royalty unit analysis for the period is based on chips
shipped for the nine-month period ended September 30, 2021. In contrast, royalty revenues are accrued in the same quarter thechips are shipped, based on estimates.
World Semiconductor Trade Statistics (WSTS) as of November 2021. Excludes memory and analog chips, which do notcontain processor technology. This data is compiled on the basis of data submitted by semiconductor companies participatingin the survey.
In addition to the Company’s commitment, a co-investment program of employees involved in the management of the fund has
committed $7 million (the program’s interest is deducted as third-party interests) to the fund.
For SBLAF1, investments in unlisted companies made on or after June 24, 2021 are subject to these.

48SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 2021

2. Notes to Summary Information(1) Significant Changes in Scope of Consolidation for the Nine-Month Period Ended December 31, 2021
(Specified subsidiary (one entity) excluded from the scope of consolidation)
On June 21, 2021, the Company sold the majority of shares in Boston Dynamics, Inc. (“Boston Dynamics”)
held by the Company through a wholly-owned subsidiary to Hyundai Motor Company and its affiliates(collectively, the “Hyundai Motor Group”) and Euisun Chung, Chairman of Hyundai Motor Group. On thesame date, Hyundai Motor Group and Euisun Chung subscribed for additional shares of Boston Dynamics.
Upon completion of the transaction, Boston Dynamics, which was a specified subsidiary of the Company,
was no longer a subsidiary of the Company. The details are described in “Note 7. Disposal group classified
as held for sale” in “(6) Notes to Condensed Interim Consolidated Financial Statements” under “3.
Condensed Interim Consolidated Financial Statements and Primary Notes.”(2) Changes in Accounting Estimates(Reversal of impairment losses on equity method investments)
Reversal of impairment losses on equity method investments was recorded for the equity method investment
in WeWork Inc., an equity method associate of the Company. The details are described in “Notes 3” in“Note 17. Other gain (loss)” in “(6) Notes to Condensed Interim Consolidated Financial Statements” under“3. Condensed Interim Consolidated Financial Statements and Primary Notes.”

49

SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 2021

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

Definition

SoftBank Group Corp.

SoftBank Group Corp. (stand-alone basis)

The Company

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

SB Northstar LP

SVF1

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

SVF2

SoftBank Vision Fund II-2 L.P. and its alternative investment vehicles

SVF2 LLC

SVF II Investment Holdings LLC

SBIA

SB Investment Advisers (UK) Limited

SBGA

SB Global Advisers Limited

Arm

Arm Limited

SoftBank Latin America Funds

SBLA Latin America Fund LLC

Fortress

Fortress Investment Group LLC

SprintSprint Corporation

Alibaba

Alibaba Group Holding Limited

WeWork

WeWork Inc.

MgmtCoMASA USA LLC

50

SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 2021

From the three-month period ended June 30, 2021, the account of condensed interim consolidated statement ofcash flows has been changed as follows:
Condensed Interim Consolidated Statement of Cash Flows
Previous

Current

Proceeds from sales of investments by SVF1

Proceeds from sales of investments by SVF1 and SVF2

From the three-month period ended September 30, 2021, the names of accounts and a reportable segment havebeen changed as follows:
Condensed Interim Consolidated Statement of Financial Position
Previous

Current

Third-party interests in SVF1

Third-party interests in SVF1 and SVF2

Condensed Interim Consolidated Statement of Income
Previous
Change in third-party interests in SVF1

Current
Change in third-party interests in SVF1 and SVF2

Condensed Interim Consolidated Statement of Cash Flows
Previous
Change in third-party interests in SVF1

Current
Change in third-party interests in SVF1 and SVF2

Segment information
Previous
SVF1 and Other SBIA-Managed Funds segment

Current
SoftBank Vision Funds segment

51

SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 2021

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

As ofMarch 31, 2021

AssetsCurrent assets
Cash and cash equivalents
Trade and other receivables
Investments from asset management subsidiaries
Securities pledged as collateral in asset management
subsidiaries
Derivative financial assets in asset management
subsidiaries
Derivative financial assets
Other financial assets
Inventories
Other current assets
Subtotal
Assets classified as held for sale
Total current assets
Non-current assets
Property, plant and equipment
Right-of-use assets
Goodwill
Intangible assets
Costs to obtain contracts
Investments accounted for using the equity method
Investments from SVF1 and SVF2 accounted for using
FVTPL
Investment securities
Derivative financial assets
Other financial assets
Deferred tax assets
Other non-current assets
Total non-current assets
Total assets

52

As of
December 31, 2021

4,662,725
2,216,434
658,227

4,618,766
2,299,480
198,584

1,427,286

94,560188,056

154,887

383,315
671,907
126,830
446,739
10,781,519
38,647
10,820,166

1,218,721
606,862
154,262
242,184
9,588,306
9,588,306

1,668,578
1,147,020
4,684,419
2,308,370
246,996
4,349,971

1,771,180
961,619
4,720,884
2,402,830
295,0034,908,746

13,646,774

15,698,201

3,706,784
908,660
1,919,262
206,069
137,384
34,930,287
45,750,453

3,871,726
1,238,329
2,472,121
173,469
140,476
38,654,584
48,242,890

SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 2021

(Millions of yen)

As ofMarch 31, 2021

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 payables
Provisions
Other current liabilities
Subtotal
Liabilities directly relating to assets classified as held forsale
Total current liabilities
Non-current liabilities
Interest-bearing debt
Lease liabilities
Third-party interests in SVF1 and SVF2
Derivative financial liabilities
Other financial liabilities
Provisions
Deferred tax liabilities
Other non-current liabilities
Total non-current liabilities
Total liabilities
EquityEquity attributable to owners of the parent
Common stock
Capital surplus
Other equity instruments
Retained earnings
Treasury stock
Accumulated other comprehensive income
Subtotal
Accumulated other comprehensive income directly
relating to assets classified as held for sale
Total equity attributable to owners of the parent
Non-controlling interests
Total equity
Total liabilities and equity

53

As of
December 31, 2021

7,735,239
307,447
1,109,240
1,970,275
322,21365,958391,930
24,939952,443
12,879,684

7,262,345
257,072
1,279,748
1,901,154
86,456263,381
96,474
23,119786,846
11,956,595

11,271-

12,890,955

11,956,595

10,777,736
727,554
6,601,791
32,692415,407
110,586
2,030,651
207,488
20,903,905
33,794,860

13,401,456
653,046
6,122,880
120,794
441,007
113,476
2,400,177
187,392
23,440,228
35,396,823

238,7722,618,504
496,876
8,810,422(2,290,077)
338,329
10,212,826

238,772
2,611,538
496,876
6,633,108(133,566)
1,267,979
11,114,707

267-

10,213,093

11,114,707

1,742,500
11,955,593
45,750,453

1,731,360
12,846,067
48,242,890

SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 2021

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

Nine-month period ended
December 31, 2020

Nine-month period ended
December 31, 2021

4,138,038(1,969,738)
2,168,300

4,580,840(2,103,871)
2,476,969

846,477

15,954

2,728,778(767,736)

124,933
99,2683,799,456

136,734
63,280(551,768)(1,575,206)(224,322)
379,431(1,849,385)(282,764)
203,742(480,665)

1,104,221(956,736)
251,246
3,361,504(975,983)
2,385,521

172,451(38,742)
1,234,724(585,430)
649,294

Discontinued operations
Net income from discontinued operations
Net income

711,174
3,096,695

649,294

Net income attributable to
Owners of the parent
Net income from continuing operations
Net income from discontinued operations

3,055,162
2,343,703
711,459

392,617392,617-

Non-controlling interests
Net income from continuing operations
Net income from discontinued operations
Net income

41,53341,818(285)
3,096,695

256,677
256,677
649,294

1,203.29
368.801,572.09

214.73214.73

1,108.32
367.85
1,476.17

207.57207.57

Continuing operations
Net sales
Cost of sales
Gross profit
Gain on investments
Gain on investments at Investment Business of
Holding Companies
Gain (loss) on investments at SVF1, SVF2, andothersGain on investments at Latin America Funds
Gain on other investments
Total gain on investments
Selling, general and administrative expenses
Finance cost
Income on equity method investments
Derivative gain (loss) (excluding gain (loss) on
investments)
Change in third-party interests in SVF1 and SVF2
Other gain (loss)
Income before income tax
Income taxes
Net income from continuing operations

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

54

SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 2021

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

Nine-month period ended
December 31, 2020

Nine-month period ended
December 31, 2021

3,096,695

649,294

9,424

28,6259,424

28,625863
34,68280(2,787)(577,126)

931,351(21,302)(15,508)(562,883)

913,136(553,459)
2,543,236

941,761
1,591,055

2,034,854
508,382

1,591,055-

2,488,577

1,322,083

1,979,909

1,322,083

508,668-

54,6592,543,236

268,972
1,591,055

Net income
Other comprehensive income, net of tax
Items that will not be reclassified to profit or loss
Equity financial assets at FVTOCI
Total items that will not be reclassified to profit orloss
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
Comprehensive income from continuing operations
Comprehensive income from discontinued operations
Total comprehensive income attributable to
Owners of the parent
Comprehensive income from continuing
operations
Comprehensive income from discontinued
operations
Non-controlling interests
Total comprehensive income

55

SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 2021

For the three-month period ended December 31
Condensed Interim Consolidated Statement of Income(Millions of yen)Three-month period ended
December 31, 2020Three-month period ended
December 31, 2021

1,507,507(759,019)
748,488

1,597,336(755,400)
841,936

266,863(263,974)

1,392,140
61,46545,677
1,766,145

111,450(56,964)
52,955(156,533)(563,905)(70,514)
178,601(662,713)(97,165)(61,589)

Continuing operations
Net sales
Cost of sales
Gross profit
Gain on investments
Gain (loss) on investments at Investment Business of
Holding Companies
Gain on investments at SVF1, SVF2, and others
Gain (loss) on investments at Latin America Funds
Gain on other investments
Total gain on investments
Selling, general and administrative expenses
Finance cost
Income (loss) on equity method investments
Derivative gain (excluding gain (loss) on
investments)
Change in third-party interests in SVF1 and SVF2
Other gain (loss)
Income before income tax
Income taxes
Net income from continuing operations

280,892

483,262(499,199)
79,524
1,920,032(703,701)
1,216,331(22,728)(136,717)
187,753(128,584)
59,169

Discontinued operations
Net income from discontinued operations
Net income

987
1,217,318

59,169Net income attributable to
Owners of the parent
Net income from continuing operations
Net income from discontinued operations

1,171,951
1,170,966
985

29,04829,048-Non-controlling interests
Net income from continuing operations
Net income from discontinued operations
Net income

45,36745,3652
1,217,318

30,12130,121
59,169626.580.53
627.11

12.07
12.07

575.020.53
575.55

11.43
11.43

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

56

SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 2021

Condensed Interim Consolidated Statement of Comprehensive Income(Millions of yen)Three-month period ended
December 31, 2020Three-month period ended
December 31, 2021

1,217,318

59,1693,938

15,8603,938

15,860

38
3,960

(120)
(6,288)(212,291)

628,187(32,046)

2,086(240,339)

623,865(236,401)
980,917

639,725
698,894

974,985
5,932

698,894-924,908

657,359

918,977

657,359

5,931-

56,009980,917

41,535
698,894

Net income
Other comprehensive income, net of tax
Items that will not be reclassified to profit or loss
Equity financial assets at FVTOCI
Total items that will not be reclassified to profit orloss
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
Comprehensive income from continuing operations
Comprehensive income from discontinued operations
Total comprehensive income attributable to
Owners of the parent
Comprehensive income from continuing
operations
Comprehensive income from discontinued
operations
Non-controlling interests
Total comprehensive income

57

SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 2021

(3) Condensed Interim Consolidated Statement of Changes in Equity
For the nine-month period ended December 31, 2020
(Millions of yen)

Equity attributable to owners of the parent

Commonstock

Capitalsurplus

Other equity
instruments

Retainedearnings

Treasurystock

Accumulated
othercomprehensive
income238,772

1,490,325

496,876

3,945,820(101,616)(362,259)

5,707,918

Comprehensive income
Net income
Other comprehensive Income

-

-

-

3,055,162--

3,055,162

-

-

-

-

-

(360,890)(360,890)

Total comprehensive income

-

-

-

3,055,162-(360,890)

2,694,272---(86,841)--(86,841)---(15,339)--(15,339)

-

-

-

1,199

-

(1,199)

-

-

-

-

(650) (1,585,779)-(1,586,429)-

909,691

-

-

-

-

909,691

-

1,486

-

-

-

-

1,486

-

1,243

-

-

-

-

1,243

-

(962)

-

-

-

-

(962)

-

-

-

-

-

1,582

1,582

-

-

-

-

-

-

-

-

911,458-(101,631) (1,585,779)

383(775,569)

238,7722,401,783

496,876(722,766)

7,626,621

As of April 1, 2020

Subtotal

Transactions with owners andother transactions
Cash dividends
Distribution to owners of other
equity instruments
Transfer of accumulated othercomprehensive income toretained earnings
Purchase and disposal of treasury
stock
Changes from loss of control
Changes in interests in subsidiaries
Changes in associates’ interests intheir subsidiaries
Changes in interests in associates’
capital surplus
Share-based payment transactions
Transfer of accumulated othercomprehensive income held for
sale
Other
Total transactions with owners
and other transactions
As of December 31, 2020

58

6,899,351(1,687,395)

SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 2021

(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, 2020

205,695

5,913,613

1,459,304

7,372,917

Comprehensive income
Net income
Other comprehensive income-

3,055,162

41,533

3,096,695(205,695)(566,585)

13,126(553,459)

Total comprehensive income(205,695)

2,488,577

54,6592,543,236-(86,841)(219,314)(306,155)-(15,339)-(15,339)

-

-

-

-

-

(1,586,429)-(1,586,429)-

909,691(427,985)
133,066(427,985)
1,042,757

-

1,486

-

1,486

-

1,243

-

1,243

-

(962)

(775)

(1,737)(1,582)

-

-

-

-

-

(1,688)(1,688)(1,582)(777,151)(516,696)(1,293,847)(1,582)

7,625,039

997,267

8,622,306

Transactions with owners andother transactions
Cash dividends
Distribution to owners of other
equity instruments
Transfer of accumulated othercomprehensive income toretained earnings
Purchase and disposal of treasury
stock
Changes from loss of control
Changes in interests in subsidiaries
Changes in associates’ interests intheir subsidiaries
Changes in interests in associates’
capital surplus
Share-based payment transactions
Transfer of accumulated othercomprehensive income held for
sale
Other
Total transactions with owners

and other transactions
As of December 31, 2020

59

SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 2021

For the nine-month period ended December 31, 2021
(Millions of yen)

Equity attributable to owners of the parent

As of April 1, 2021

Commonstock

Capitalsurplus

Other equity
instruments

Retainedearnings

Treasurystock

Accumulated
othercomprehensive
income338,329

10,212,826

Subtotal

238,7722,618,504

496,876

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

Comprehensive income
Net income
Other comprehensive income

-

-

-

392,617--392,617

-

-

-

-

-

929,733

929,733

Total comprehensive income

-

-

-

392,617-929,733

1,322,350---(75,947)--(75,947)---(15,676)--(15,676)

-

-

-

83

-

(83)

-

-

-

-

(2,574)(319,306)-(321,880)-(1,991)-(2,475,817)-

2,475,817--(1,991)-(4,443)

-

-

-

-

(4,443)

-

(1)

-

-

-

-

(1)

-

(666)
135

-

-

-

-

(666)
135

-

(6,966)-(2,569,931)

2,156,511(83)(420,469)

238,772

2,611,538

496,876

6,633,108(133,566)

1,267,979

11,114,707

Transactions with owners andother transactions
Cash dividends
Distribution to owners of other
equity instruments
Transfer of accumulated othercomprehensive income toretained earnings
Purchase and disposal of treasury
stock
Retirement of treasury stock
Changes from loss of control
Changes in interests in subsidiaries
Changes in associates’ interests intheir subsidiaries
Changes in interests in associates’
capital surplus
Share-based payment transactions
Other
Total transactions with owners
and other transactions
As of December 31, 2021

60

SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 2021

(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-

392,617

256,677

649,294(267)

929,466

12,295

941,761

Total comprehensive income(267)

1,322,083

268,972

1,591,055-(75,947)(273,103)(349,050)-(15,676)-(15,676)

-

-

-

-

-

(321,880)-(321,880)

-

-

-

-

-

(1,991)(15,861)(654)(15,861)(2,645)-(4,443)-(4,443)

-

(1)

-

(1)

-

(666)
135

10,580(1,074)

9,914
(939)

-

(420,469)(280,112)(700,581)-

11,114,707

1,731,360

12,846,067

Transactions with owners andother transactions
Cash dividends
Distribution to owners of other
equity instruments
Transfer of accumulated othercomprehensive income toretained earnings
Purchase and disposal of treasury
stock
Retirement of treasury stock
Changes from loss of control
Changes in interests in subsidiaries
Changes in associates’ interests intheir subsidiaries
Changes in interests in associates’
capital surplus
Share-based payment transactions
Other
Total transactions with owners
and other transactions
As of December 31, 2021

61

SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 2021

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

Cash flows from operating activities
Net income from continuing operations
Net income from discontinued operations
Net income
Depreciation and amortization
Gain on investments at Investment Business of Holding
Companies(Gain) loss on investments at SVF1, SVF2, and others
Gain on investments at Latin America Funds
Finance cost
Income on equity method investments
Derivative loss (gain) (excluding (gain) loss on
investments)
Change in third-party interests in SVF1 and SVF2
Gain on other investments and other (gain) loss
Income taxes
Decrease in investments from asset management
subsidiaries
Increase/decrease in derivative financial assets andderivative financial liabilities in asset management
subsidiaries(Increase) decrease in securities pledged as collateral inasset management subsidiaries
Increase in borrowed securities in asset management
subsidiaries
Increase in trade and other receivables
Increase in inventories
Increase in trade and other payables
Gain relating to loss of control over discontinued
operations
Other
SubtotalInterest and dividends received
Interest paid
Income taxes paid
Income taxes refunded
Net cash (used in) provided by operating activities

62

Nine-month period
ended December 31,
2020

Nine-month period
ended December 31,
2021

2,385,521
711,174
3,096,695
628,486

649,294649,294
633,501(1,410,871)(11,448)(2,728,778)(124,933)
226,366(379,176)

767,736(136,734)
282,764(203,742)

480,598(1,104,221)

956,736(335,121)
978,066(172,451)(24,538)
585,430

1,195,610

463,563(114,332)

23,937(1,241,711)

1,329,563

5,874

135,176(286,893)(26,932)
163,701(332,818)(27,152)
243,275(722,231)-

9,566
370,720
19,579(187,476)(538,873)
263,079(72,971)

123,567
3,224,702
25,161(259,894)(838,963)
257,973
2,408,979

SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 2021

(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 SVF1 and
SVF2Proceeds from sales of investments by SVF1 and SVF2
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, andintangible assets
Payments for loan receivables
Collection of loan receivables
Proceeds from withdrawal of restricted cash
Payments into trust accounts in SPACs
Other
Net cash used in investing activities
Cash flows from financing activities
Proceeds in short-term interest-bearing debt, net
Proceeds from interest-bearing debt
Repayment of interest-bearing debt
Repayment of lease liabilities
Contributions into SVF1 from third-party investors
Distribution/repayment from SVF1 to third-party
investors
Proceeds from non-controlling interests subject topossible redemption
Proceeds from the partial sales of shares of subsidiaries
to non-controlling interests
Purchase of shares of subsidiaries from non-controllinginterests
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
Decrease in cash and cash equivalents relating to transfer
of assets classified as held for sale
Increase (decrease) in cash and cash equivalents
Cash and cash equivalents at the beginning of the period
Cash and cash equivalents at the end of the period

63

Nine-month period
ended December 31,
2020

Nine-month period
ended December 31,
2021(3,092,052)
2,953,239(830,231)
339,662(576,756)(3,533,015)

399,204

1,734,173-(155,515)

29,905131,575(78,290)(86,824)

227,683

88,800(488,852)(690,535)(210,460)
27,761
13,282(73,306)
62,708(805,934)(118,787)
54,350359,038(5,500)(130,756)(2,843,565)

1,421,556
5,090,846(4,017,518)(308,875)
774,726(913,287)
9,453,135(6,381,610)(254,785)
138,976(602,731)(975,999)

73,3065,500

1,552,957

458(68,063)(42,700)(15,339)(1,607,840)(86,509)(148,726)(2,131)
2,055,659(15,676)(328,463)(75,691)(271,052)(27,778)
311,028(87,890)

79,599(5,780)-1,083,084
3,369,015
4,452,099(43,959)
4,662,725
4,618,766

SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 2021

(5) Significant Doubt about Going Concern Assumption
There are no applicable items.
(6) Notes to Condensed Interim Consolidated Financial Statements
1. Changes in presentation(Condensed interim consolidated statement of financial position)“Derivative financial assets (current),” which was included in “Other financial assets (current)” in the past fiscal
year, is separately presented from the three-month period ended September 30, 2021 since the amount increased
and became significant. In order to reflect the change in presentation, ¥383,315 million, which was included in“Other financial assets (current)” as of March 31, 2021, is reclassified as “Derivative financial assets (current).”(Condensed interim consolidated statement of income and condensed interim consolidated statement ofcomprehensive income)“Gain on investments at Latin America Funds,” which was included in “Gain on other investments” in the pastfiscal year, is separately presented from the three-month period ended June 30, 2021 since the amount increased
and became significant. In order to reflect the change in presentation, ¥124,933 million and ¥61,465 million,
which were included in “Gain on other investments” for the nine-month period ended December 31, 2020 and thethree-month period ended December 31, 2020, are reclassified as “Gain (loss) on investments at Latin America
Funds.” The details of Latin America Funds are described in “Note 3. Segment information.”

64

SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 2021

2. Significant accounting policies
Significant accounting policies applied to the condensed interim consolidated financial statements are consistent
with the accounting policies applied to the consolidated financial statements for the fiscal year ended March 31,
2021. In addition, income taxes for the nine-month period ended December 31, 2021 are calculated based on theestimated effective tax rate for the fiscal year.
Significant accounting policies for the SoftBank Vision Funds segment and for the asset management subsidiary
are consistent with the accounting policies applied to the consolidated financial statements for the fiscal year
ended March 31, 2021. The details are described in “(1) Significant accounting policies for the SoftBank Vision
Funds segment” and “(2) Significant accounting policies for the asset management subsidiary.”(1) Significant accounting policies for the SoftBank Vision Funds segment
For SVF1 and SVF2, the Company applies the following accounting policies.
a. Consolidation of SVF1 and SVF2 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 areconsolidated by the Company for the following reasons.
As of December 31, 2021, SVF1 and SVF2 are managed by SBIA and SBGA, respectively, which are
wholly-owned subsidiaries of the Company in the UK. SVF2 was previously managed by SBIA and has been
managed by SBGA since September 2021. 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 and SBGA receive performance fees and 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 havecontrol as stipulated in IFRS 10 “Consolidated Financial Statements” over SVF1 and SVF2.
Inter-company transactions such as management fees and performance fees to SBIA and SBGA paid or to be
paid from SVF1 and SVF2 are eliminated in consolidation.
b. Portfolio company investments made by SVF1 and SVF2(a) Investments in subsidiaries
Of the portfolio company investments made by SVF1 and SVF2, the portfolio companies that theCompany 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
condensed interim consolidated financial statements.

65

SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 2021

Gain and loss on investments in the subsidiaries of the Company which are recognized in SVF1 and SVF2
are eliminated in consolidation.
(b) Investments in associates and joint ventures
Of the portfolio company investments made by SVF1 and SVF2, the portfolio companies over which theCompany has significant influence under IAS 28 “Investments in Associates and Joint Ventures” areassociates of the Company, and the portfolio companies that are joint ventures of SVF1 and SVF2 when,as defined under IFRS 11 “Joint Arrangements,” SVF1 and SVF2 have joint control with other investors
under contractual arrangements and the investors have rights to the net assets of the arrangement.
The investments in associates and joint ventures of the Company made by SVF1 and SVF2 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 SVF1 and SVF2 accounted for using FVTPL” inthe condensed interim consolidated statement of financial position. The payments for these investments
are presented as “Payments for acquisition of investments by SVF1 and SVF2” and the proceeds fromsales of these investments are presented as “Proceeds from sales of investments by SVF1 and SVF2”
under cash flows from investing activities in the condensed interim 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 or SVF2 were accounted for using the equity method prior to the transfer, theseinvestments continue to be accounted for using the equity method after the transfer to SVF1 or SVF2 andpresented as “Investments accounted for using the equity method” in the condensed interim consolidated
statements of financial position. Gain and loss on the investments which were recognized in SVF1 or
SVF2 are eliminated in consolidation and gain and loss on the investments accounted for using the equity
method are presented as “Income (loss) on equity method investments” in the condensed interim
consolidated statements of income.
(c) Other investments
Investments other than those in associates or joint ventures of the Company made by SVF1 and SVF2 are
accounted for as financial assets at FVTPL. The presentation of these investments in the condensed interim
consolidated statement of financial position and the condensed interim consolidated statement of cash
flows are the same as the above “(b) Investments in associates and joint ventures.”c. Contribution from limited partners in SVF1 and SVF2 and investors in SVF2 LLC (collectively “SVF
Investors”)
The Company introduced a co-investment program with restricted rights to receive distributions to SVF2 inAugust 2021. Accordingly, SVF Investors other than the Company have invested in SVF2 for the purpose of
the program since the three-month period ended September 30, 2021. The details are described in “(1)Introduction of Co-investment Program with Restricted Rights to Receive Distributions and Preferred Equity
to SVF2” under “Note 4. SoftBank Vision Funds business.”

66SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 2021

(a) Contribution from SVF Investors other than the Company (“Third-Party Investors,” and each a “ThirdParty Investor”)
The interests attributable to Third-Party Investors in SVF1 and SVF2 are classified as financial liabilities,“Third-party interests in SVF1 and SVF2” in the condensed interim consolidated statement of financial
position, due to the 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 and SVF2. The
liabilities are classified as “financial liabilities measured at amortized cost” upon initial recognition. The
carrying amounts attributable to Third-Party Investors represent the amounts that would be distributed inaccordance with the constitutional agreements in a theoretical liquidation scenario at the end of eachquarter.
Third-Party Investor in SVF2 is entitled to make full or partial payment of their investment and related
adjustments at any point in time, at its discretion, from the date it became an investor in SVF2 LLC to theend of company life of SVF2 LLC, and as of December 31, 2021, the Company has recognizedreceivables from Third-Party Investor. The receivables are included in “Other financial assets (noncurrent)” in the condensed interim consolidated statement of financial position.
“Third-party interests in SVF1 and SVF2” fluctuates due to the results of SVF1 and SVF2 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 and SVF2 are presented as “Change inthird-party interests in SVF1 and SVF2” in the condensed interim consolidated statement of income.
Contributions from Third-Party Investors to SVF1 are included in “Contributions into SVF1 from thirdparty investors” under cash flows from financing activities in the condensed interim consolidated
statement of cash flows. The distributions and repayments of investments to Third-Party Investors areincluded in “Distribution/repayment from SVF1 to third-party investors” under cash flows from financing
activities in the condensed interim consolidated statement of cash flows. No cash contributions into SVF2
from Third-Party Investor and no cash distribution/repayment from SVF2 to Third-Party Investor weremade as of December 31, 2021.
Uncalled committed capital from Third-Party Investors is not subject to IFRS 9 “Financial Instruments,”
and, therefore, such amount is not recorded in the condensed interim consolidated statement of financial
position.
(b) Contribution from the Company
Contributions to SVF1 and SVF2 from the Company are eliminated in consolidation.

67

SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 2021

(2) Significant accounting policies for the asset management subsidiary
SB Northstar, a subsidiary of the Company, is engaged in various transactions such as acquisition and sale oflisted stocks, derivative transactions related to listed stocks, credit transactions, and others for diversification of
the assets held and management of surplus funds. “The asset management subsidiary” described in thecondensed interim consolidated financial statements and the notes indicates SB Northstar.
For SB Northstar, the Company applies the following accounting policies.
a. Investments from the asset management subsidiary
The investments in securities made by SB Northstar (except for investments in associates accounted for using
the equity method) are accounted for as financial assets at FVTPL as the investments meet the definition offinancial assets held for sale in accordance with IFRS 9 “Financial Instruments” and presented as“Investments from assets management subsidiaries” under current assets in the condensed interim
consolidated statement of financial position. At initial recognition, the investments are measured at fair value
and transaction costs directly arising from the acquisition of financial assets are recognized as net of profit
and loss. Subsequent to initial recognition, they are measured at fair value and valuation gains and losses
arising from changes in fair value and dividend income are included in “Gain (loss) on investments at
Investment Business of Holding Companies” in the condensed interim consolidated statement of income. In
addition, the changes in investment amounts due to acquisition and sale of investments from SB Northstar arepresented as net of “(Increase) decrease in investments from asset management subsidiaries (cash flows fromoperating activities)” in the condensed interim consolidated statement of cash flows. Of the investments inassociates of the Company made by SB Northstar, investments in associates accounted for using the equity
method are included in “Investments accounted for using the equity method” in the condensed interim
consolidated statement of financial position.
The investments in convertible bonds and others made by SB Northstar are accounted for as financial assets
at FVTPL and are included in “Other financial assets (non-current)” in the condensed interim consolidated
statement of financial position. Valuation gains and losses arising from changes in fair value and dividend
income are included in “Gain (loss) on investments at Investment Business of Holding Companies” in thecondensed interim consolidated statement of income. In addition, payments for acquisition of convertible
bonds and others made by SB Northstar are presented as “Payments for acquisition of investments by asset
management subsidiaries (cash flows from investing activities)” in the condensed interim consolidated
statement of cash flows.
b. Securities pledged as collateral in the asset management subsidiary
Of securities pledged as collateral, securities which the recipient can sell or pledge them as re-collateral are
separated from “Investments from asset management subsidiaries” and presented as “Securities pledged ascollateral in asset management subsidiaries” in the condensed interim consolidated statement of financial
position. In addition, changes in the securities pledged as collateral in SB Northstar are presented as net of“(Increase) decrease in securities pledged as collateral in asset management subsidiaries (cash flows fromoperating activities)” in the condensed interim consolidated statement of cash flows.

68SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 2021

c. Restricted cash
Restricted cash in SB Northstar is the deposit pledged as collateral to the brokers for acquisition transactionsof investments using borrowings, derivative transactions, and credit transactions and its usage is restricted.
The restricted cash is included in “Other financial assets (current)” in the condensed interim consolidated
financial position and changes in restricted cash in SB Northstar are included under cash flows from operating
activities in the condensed interim consolidated statement of cash flows.
d. Margin deposits
Margin deposits in SB Northstar are the deposits pledged as collateral for unsettled balance for acquisitionand sale of investments and unsettled derivatives to the brokers and are included in “Other financial assets(current)” in the condensed interim consolidated statement of financial position. At initial recognition, they
are measured at fair value and subsequent to initial recognition, they are measured at amortized cost. In
addition, changes in margin deposits in SB Northstar are included under cash flows from operating activities
in the condensed interim consolidated statement of cash flows.
e. Borrowed securities
The securities borrowed for short credit transactions have obligations for delivery of future financial assets
and meet the definition of financial liabilities held for sale in accordance with IFRS 9 “Financial
Instruments.” Therefore, they are accounted for as financial instruments at FVTPL and included in “Other
financial liabilities (current)” in the condensed interim consolidated statement of financial position. At initialrecognition and subsequent to initial recognition, they are measured at fair value and valuation gains andlosses arising from changes in fair value are included in “Gain (loss) on investments at Investment Businessof Holding Companies” in the condensed interim consolidated statement of income. In addition, changes inborrowed securities in SB Northstar are included under cash flows from operating activities in the condensed
interim consolidated statement of cash flows.

69

SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 2021

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, 2021, the Company had four reportable segments, the Investment
Business of Holding Companies segment, the SoftBank Vision Funds segment, the SoftBank segment, and
the Arm segment. The Latin America Funds segment previously included in “Other” has been added to thereportable segments from the three-month period ended June 30, 2021 since the materiality has increased.
The SVF1 and Other SBIA-Managed Funds segment was renamed to the SoftBank Vision Funds segmentfrom the three-month period ended September 30, 2021.
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. SB Northstar is engaged in various transactions such as acquisition and sale of listed
stocks, derivative transactions related to listed stocks, credit transactions, and others for diversification of theassets held and management of surplus funds. Gain and loss on investments at Investment Business of Holding
Companies consist of gain and loss arising from investments held directly by SoftBank Group Corp. or
through subsidiaries of the Company. 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 and SVF2, investment activities in awide range of technology sectors. Primarily, gain and loss on investments at SVF1, SVF2, and others consistof gain and loss arising from investments held by SVF1 and SVF2 including the investment in the Company’s
subsidiary.
The SoftBank segment provides, mainly through SoftBank Corp., mobile services, sale of mobile devices,internet services such as broadband services in Japan, and through Yahoo Japan Corporation and Line
Corporation, internet advertising and e-commerce business.
The Arm segment provides, through Arm, designs of microprocessor intellectual property and related
technology, the sale of software tools, and related services.
The Latin America Funds segment conducts, mainly through SoftBank Latin America Funds, investment
activities all over the Latin America region. Primarily, gain and loss on investments at Latin America Funds
consist of gain and loss arising from investments held by SoftBank Latin America Funds.

70SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 2021

Information on business segments which are not included in the reportable segments is classified in “Other.”“Other” includes mainly PayPay Corporation, 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, a subsidiary of the Company, and WeWork, an equity method
associate, and others, which are included in segment income of the SoftBank Vision Funds segment, and anelimination of income and loss on equity method investments recognized relating to PayPay Corporation,
which is included in segment income of the SoftBank segment.
Segment information for the nine-month period ended December 31, 2020 and the three-month period ended
December 31, 2020 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 condensed interim
consolidated statement of income, “Gain (loss) on investments” included in segment income includes realized
gain and loss from investments in financial assets at FVTPL for which investment performance is measured atfair value, unrealized gain and loss on valuation of investments, dividend income from investments, derivative
gain and loss 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.

71SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 2021

For the nine-month period ended December 31, 2020
(Millions of yen)

Reportable segments
Investment Businessof Holding Companies

SoftBank Vision
Funds

SoftBank

Latin America
Funds

Arm

Net sales
Customers
Intersegment--

3,798,193
7,368

154,094
655

-

Total

-

-

3,805,561

154,749-

762,985

1,758,117

746,219(24,204)

121,504(1,550)(396)(537,640)(53,139)(77)

846,477(157,769)

2,767,257(7,634)(4,496)(48,849)55(620)

124,933(251)363,660-(26,205)

1,852-(482,668)

-

(135)

1,457

-

Reconciliations

Consolidated

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

Total

Other

Net sales
Customers
Intersegment

3,952,287
8,023

185,751
6,914(14,937)

4,138,038-

Total

3,960,310

192,665(14,937)

4,138,038

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

3,364,621

13,690(16,807)3,361,504(592,802)(31,301)-(624,103)

3,734,226(215,123)

103,709(11,992)(38,479)
2,793

3,799,456(224,322)

339,307

19,48920,635

379,431(481,346)

681-(480,665)

72

SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 2021

For the nine-month period ended December 31, 2021
(Millions of yen)

Reportable segments
Investment Businessof Holding Companies

SoftBank Vision
Funds*SoftBank

Latin America
Funds

Arm

Net sales
Customers
Intersegment--

4,164,197
9,364

226,836
534

-

Total

-

-

4,173,561

227,370-

973,742(480,579)

724,199

31,088

127,512(2,912)(423)(550,625)(55,746)(112)

15,846(209,189)(579,740)(18,657)

21,506(46,452)

244
(733)

136,734(1,155)

221,680-(49,236)(400)-

1,106,568

1,013

289

(259)

89

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

Total

Other

Reconciliations

Consolidated

Net sales
Customers
Intersegment

4,391,033
9,898

189,807
11,430(21,328)

4,580,840-

Total

4,400,931

201,237(21,328)

4,580,840

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

1,375,962

25,613(166,851)

1,234,724(609,818)(23,683)-(633,501)(405,410)(276,186)

41,530(10,194)(187,888)
3,616(551,768)(282,764)

172,044

19,524

12,174

203,742

1,107,700(3,479)-1,104,221

Note:* The details of the difference between “Gain (loss) on investments” in the SoftBank Vision Funds segment and “Gain (loss) on
investments at SVF1, SVF2, and others” in the condensed interim consolidated statement of income are described in “Note 4.
SoftBank Vision Funds business.”73SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 2021

For the three-month period ended December 31, 2020
(Millions of yen)

Reportable segments
Investment Businessof Holding Companies

SoftBank Vision
Funds

SoftBank

Latin America
Funds

Arm

Net sales
Customers
Intersegment--

1,375,149
2,645

54,416
329

-

Total

-

-

1,377,794

54,745-

737,637

844,128

212,935(13,383)

59,643

(575)

(130)

(189,631)(17,417)(45)

266,863(49,594)

1,355,690(1,406)

1,547(15,929)55(201)

61,465(143)

169,053-(9,076)

175-

279,749

-

(93)

305

-

Reconciliations

Consolidated

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

Total

Other

Net sales
Customers
Intersegment

1,429,565
2,974

77,942
2,523(5,497)

1,507,507-

Total

1,432,539

80,465(5,497)

1,507,507

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

1,840,960

36,55042,522

1,920,032(207,798)(8,957)-(216,755)

1,685,620(67,273)

44,075(4,095)36,450854

1,766,145(70,514)160,152

12,581

5,868

178,601

279,961931-

280,892(excluding gain (loss) on
investments)

74

SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 2021

For the three-month period ended December 31, 2021
(Millions of yen)

Reportable segments
Investment Businessof Holding Companies

SoftBank Vision
Funds

SoftBank

Latin America
Funds

Arm

Net sales
Customers
Intersegment--

1,446,140
3,064

65,743
272

-

Total

-

-

1,449,204

66,015-(42,311)

108,957

192,074(2,906)(60,430)

(977)

(146)

(182,873)(19,151)(36)(263,842)(70,774)

163,424(8,978)

1,222(15,348)

232
(244)

(56,964)(677)(45,309)-(20,982)478-

482,671

(411)

287

718

(3)

Reconciliations

Consolidated

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

Total

Other

Net sales
Customers
Intersegment

1,511,883
3,336

85,453
4,171(7,507)

1,597,336-

Total

1,515,219

89,624(7,507)

1,597,336

195,384

42,275(49,906)

187,753(203,183)(7,565)-(210,748)(155,928)(96,021)51,502(2,626)(52,107)
1,482(156,533)(97,165)(65,813)

38

4,186

(61,589)483,262--

483,262

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

75

SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 2021

4. SoftBank Vision Funds business(1) Introduction of Co-investment Program with Restricted Right to Receive Distributions and Preferred Equity to
SVF2
a. Co-investment Program with Restricted Rights to Receive Distributions
The Board of Directors of SoftBank Group Corp. resolved to introduce a co-investment program withrestricted rights to receive distributions to SVF2. In July 2021, based on the resolution, the Company
established SVF2 LLC, a wholly-owned subsidiary of the Company, beneath SVF2 for the program. SVF2
LLC has entered into a definitive agreement in August 2021 with the Company and MgmtCo, a participant in
the program, which resulted in MgmtCo becoming an investor in SVF2 LLC.
MgmtCo 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 details of the related party
transactions between the Company and MgmtCo are described in “Note 19. Related party transactions.”(a) Purpose of the program
The program has been introduced for the purpose of enabling Masayoshi Son to make a co-investment in
SVF2, sharing risk of losses as well as benefit of profits in the success of SVF2, and leading to enhanced
focus on the management of SVF2 investments, which in turn is intended to contribute to increases in the
Company’s earnings. In making a co-investment in SVF2 under the terms of the program, MgmtCo both
receives the benefit of profits from SVF2 and assumes the risk of losses from SVF2, and MgmtCo’s right toreceive distributions from its investment is subject to certain restrictions.
(b) Overview of the program
Contributions by SVF Investors are classified as “Equity” and “Preferred Equity” depending on the terms
and conditions of distribution. Overview of the program is as follows:i. Investment in SVF2 LLC
Based on the definitive agreement entered into in August 2021, SVF2 LLC has issued Equity to theCompany and MgmtCo. The Company (through SoftBank Vision Fund II-2 L.P. and its subsidiaries) holds
82.75% of the total Equity interests in SVF2 LLC and MgmtCo holds 17.25% of the total Equity interests in
SVF2 LLC. The Equity interests held by the Company and MgmtCo are entitled to performance-based
distributions that are allocated to each investor based on the proportion of their respective Equity
contributions.

76

SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 2021

ii. Transfer of portfolio companies
After the definitive agreement signed in August 2021, for the purpose of the program, unlisted portfolio
companies that were held or planned to be held by SVF2 as of June 23, 2021 have in principle beentransferred to SVF2 LLC. As a result, the transfers of the portfolio companies had been conductedsequentially, and as of December 31, 2021, the transfers have been completed.
iii. Investment from MgmtCo
Upon the completion of the transfers of the relevant portfolio companies from SVF2 to SVF2 LLC, theEquity for each portfolio company is issued from SVF2 LLC to the Company and MgmtCo. As a result, asof December 31, 2021, the total amount of capital contribution made by MgmtCo was $2.6 billion and thetotal amount after adding the related adjustments to the capital contribution (the “Equity Acquisition
Amount”) was $2.9 billion, respectively.
iv. Receivables and premiums accrued on Equity Acquisition Amount
MgmtCo is entitled to make full or partial payment of its Equity Acquisition Amount at any point in time,at its discretion, from the date it became an investor in SVF2 LLC to the end of the company life of SVF2
LLC. MgmtCo is required to pay a premium of 3% per annum on the unpaid Equity Acquisition Amountuntil the unpaid amount is paid in full. MgmtCo is also entitled to make full or partial payment of thepremium at any point in time, at its discretion on the same terms and conditions as Equity Acquisition
Amount. As of December 31, 2021, no cash payment has been made from MgmtCo for the Equity
Acquisition Amount and the premium. The details of the receivables related to the Equity Acquisition
Amount and the premium as of December 31, 2021 are described in “(b) Third-party interests in SVF2 andreceivables” in “b. Changes in interests attributable to Third-Party Investors” under “(4) Third-party
interests in SVF1 and SVF2.” Any distributable amount from SVF2 LLC to MgmtCo is offset against thereceivables at the time of the distribution notice and no distribution payments to MgmtCo are made until
SVF2 LLC’s receivables are paid in full.
v. Collateral and other credit protection for receivables
In order to secure the receivables of SVF2 LLC, 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
amounts of 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 thereceivables. In addition, as of December 31, 2021, 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 theenforcement of the collateral and personal guarantees by SVF2 LLC.

77

SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 2021

vi. Restrictions on rights to receive distributions to MgmtCoDistributions 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 aggregate acquisition cost of all of SVF2
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 andMgmtCo is entitled to receive the full amount of the distributions. In the event that, upon the liquidation of
SVF2 LLC, the amount of the distribution received by MgmtCo exceeds the amount that would have been
distributed to MgmtCo if the ratio in effect at the time of liquidation was applied throughout the life of
SVF2 LLC, then any such excess amounts will be subject to clawback from MgmtCo.
vii. Nature of the Equity contribution by the Company and MgmtCo
The Equity interests held by the Company and MgmtCo are subordinated to the Preferred Equity of SVF2
LLC described in “b. Preferred Equity Contribution to SVF2 by the Company.” If there is a shortfall in theamount 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.
viii. Management fee and performance fees to be charged to MgmtCo
The terms of the management fee and performance fees to be charged to MgmtCo are the same as those to
be charged to the Company as an Equity investor in SVF2 LLC. The details of the management fee andperformance fees to be charged to MgmtCo is described in “b. Management fees and performance fees in
SVF2” under “(5) Management fees and performance fees.”b. Preferred Equity Contribution to SVF2 by the Company
SoftBank Group Corp. has resolved at a meeting of its Board of Directors that SVF2 LLC issues to theCompany (through SoftBank Vision Fund II-2 L.P. and its subsidiaries) a new class of Preferred Equity
interests that is subject to fixed distribution separate from the Equity under the program. The purpose of
issuing the Preferred Equity is to enhance the efficiency of recovery of investment funds. The Preferred Equity
interests in the amount of $19.6 billion have been issued to the Company from the introduction of Preferred
Equity to December 31, 2021. The Preferred Equity interests have a priority right over the Equity interests
held by the Company and MgmtCo under the program in terms of its distributions and return of thecontributions, and the Company receives a fixed distribution amount calculated at 8% per annum on theamount of Preferred Equity contributions by the Company. The Company’s contributions to SVF2 LLC for
new investments on and after June 24, 2021 are Preferred Equity contributions.
c. Committed capital
After the introduction of the program and Preferred Equity, $2.6 billion was reduced from the Company’scommitted capital and MgmtCo’s committed capital was increased by the same amount. As a result, the totalcommitted capital for SVF2 as a whole amount after the introduction of the program was $40 billion.

78

SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 2021

d. Structure
Please refer to the following scheme diagram for “a. Co-investment Program with Restricted Rights to
Receive Distributions” and “b. Preferred Equity Contribution to SVF2 by the Company.”(a) Structure prior to the introduction of the program and Preferred Equity(b) Structure after the introduction of the program and Preferred Equity

Notes:
1. From the introduction of the program and Preferred Equity to December 31, 2021, the committed capital for SVF2 wasincreased by $11.0 billion, which is attributable to the Company as an investor in SVF2. As a result, the total commitment
capital for SVF2 as a whole was $51.0 billion as of December 31, 2021.
2. Includes portfolio companies publicly filing for listing as of June 23, 2021, and portfolio companies that were approved by the
Board of Directors to be excluded from the program. The Company continues to hold 100% of Equity for investments in theportfolio companies that are outside of the program’s scope.

79

SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 2021

(2) Change of a manager of SVF2
SVF2 was previously managed by SBIA and has been managed by SBGA, which is a wholly-owned subsidiaryof the Company, since September 2021. SBGA outsources most of its operations to SBIA and SBIA continues tosupport the management of SVF2 as an outsourced service provider.
(3) 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 and performance fees that SBIA and SBGA receive from SVF1 and SVF2, respectively.
The amount of the net profits attributable to Third-Party Investors that is deducted from the segment income ispresented 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)
Nine-month period ended Nine-month period ended
December 31, 2020
December 31, 2021
Gain (loss) on investments at SVF1, SVF2, and others
1

Realized gain on investments

205,274

1,127,624

2,652,701(537,819)(107,151)(1,199,022)

8,219
1,091
7,123

24,55551,450(46,528)

2,767,257(579,740)(45,199)(7,634)(53,920)(18,657)-

1,013(956,736)
429

172,451(1,726)

1,758,117(480,579)

Unrealized gain (loss) on valuation of investments
Change in valuation for the fiscal year

2

Reclassified to realized gain recorded in the past3
fiscal year
Interest and dividend income from investments
Derivative gain on investments
4
Effect of foreign exchange translation
Subtotal
Selling, general and administrative expenses
Finance cost (interest expenses)
Derivative gain (excluding gain (loss) on
investments)
Change in third-party interests in SVF1 and SVF2
Other gain (loss)
Segment income arising from the SoftBank Vision
Funds business (income before income tax)

80

SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 2021

Notes:
1. In addition to the realized gain and loss on sales by cash consideration, the realized gain and loss by share exchange areincluded.
2. SVF1 recorded ¥154,525 million of unrealized gain on valuation for the nine-month period ended December 31, 2021 upon
the fair value estimation of Arm held by SVF1.
The unrealized gain on valuation arising from Arm shares held by SVF1 is included in “Gain (loss) on investments at SVF1,
SVF2, and others” (in Change in valuation for the fiscal year under Unrealized gain (loss) on valuation of investments) in theabove-mentioned segment income. However, the unrealized gain on valuation is eliminated in consolidation as Arm is a
subsidiary of the Company.
For the three-month period ended June 30, 2021, Arm transferred 75.01% of the shares of Treasure Data, Inc. to theCompany’s wholly-owned foreign subsidiary and 24.99% of the shares to SVF1 as dividends in kind. The 75.01% ofTreasure Data, Inc. shares were transferred through sales from the Company’s wholly-owned foreign subsidiary to SVF2. As
a result, the fair value of Treasure Data, Inc. shares, which was included in the fair value of Arm shares as of March 31, 2021,
is not included in the fair value of Arm shares as of December 31, 2021.
¥19,019 million of shares of Treasure Data, Inc. received as dividends in kind which SVF1 received from Arm is included in“Gain (loss) on investments at SVF1, SVF2, and others” (in Interest and dividend income from investments) in the abovementioned segment income, however, the dividends are 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. ¥11,062 million of the unrealized gain on valuation after the transfer date arising from WeWork common shares
held by SVF2 is included in “Gain (loss) on investments at SVF1, SVF2, and others” (in Change in valuation for the fiscal
year under Unrealized gain (loss) on valuation of investments) in the above-mentioned segment income. However, theunrealized gain on valuation is eliminated in consolidation as WeWork is an equity method associate of the Company.
The unrealized gain and loss on valuation and the dividends, that are eliminated in consolidation, are not included in “Gain(loss) on investments at SVF1, SVF2, and others” in the condensed interim consolidated statement of income.
3. It represents the unrealized gain and loss on valuation of investments recorded as “Gain (loss) on investments at SVF1, SVF2,
and others” in the past fiscal years, which are reclassified to “Realized gain (loss) on investments” due to the realization for
the nine-month period ended December 31, 2021.
4. 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.

81

SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 2021

(4) Third-party interests in SVF1 and SVF2
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 of SVF1 and SVF2. Those
performance-based distributions and performance fees attributed to SBIA and SBGA are allocated using themethod specified in the limited partnership agreement. The amount of performance-based distribution
attributed to SVF Investors are allocated to each of the SVF Investors based on the proportion of theirrespective Equity contribution. The amount of performance-based distributions is paid to each of the SVF
Investors after SVF1 and SVF2 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 are described in “a. Co-investment Program with Restricted
Rights to Receive Distributions” under “(1) Introduction of Co-investment Program with Restricted Rights to
Receive Distributions and Preferred Equity to SVF2.” There are no Third-Party Investors who contributed toPreferred Equity in SVF2.
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.”82

SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 2021

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 SVF1
and SVF2” in the condensed interim consolidated statement of financial position) are as follows:

Third-party interests in SVF1
(Total of current liabilities andnon-current liabilities)(Millions of yen)(For reference purposes only)
Links with the condensed interim consolidated financial
statements
Consolidated statement
Consolidated statement ofof income
cash flows(Negative figures represent (Negative figures represent
expenses)
payments)(Breakdown)
As of April 1, 2021
Contributions from third-party
investors
Changes in third-party interests
Attributable to investors entitled to
fixed distribution
Attributable to investors entitled toperformance-based distribution
Distribution/repayment to third-party
investors
Exchange differences on translating
third-party interests*
As of December 31, 2021

6,601,791
138,976-

138,976(176,901)

176,901-(975,999)-(975,999)

215,835--

115,158(292,059)

5,803,702

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

83SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 2021(b) Third-party interests in SVF2 and receivables
Changes in interests attributable to Third-Party Investor in SVF2 (included in “Third-party interests in SVF1
and SVF2” in the condensed interim consolidated statement of financial position) are as follows: Third-party
Investor in SVF2 is the investor entitled to performance-based distribution.
(Millions of yen)(For reference purposes only)
Links with the condensed interim
consolidated financial statements
Third-party
Consolidated
Consolidated
interests in SVF2
statement of cash
statement
flows(Total of currentof incomeliabilities and non- (Negative figures (Negative figurescurrent liabilities) represent expenses) represent payments)
As of April 1, 2021
Acquisition of interest by third-party investor
Changes in third-party interests
Distribution/repayment to the third-party
investor (Offsetting against the receivables)
Exchange differences on translating thirdparty interests*
As of December 31, 2021

325,292
4,450(4,450)-(19,104)

-

-

8,540

-

-

319,178

Note:* Exchange differences were included in “Exchange differences on translating foreign operations” in the condensed interim
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 condensed interim
consolidated statements of financial position) are as follows: The details of the receivables from Third-Party
Investor in SVF2 are described in “a. Co-investment Program with Restricted Rights to Receive Distributions”
under “(1) Introduction of Co-investment Program with Restricted Rights to Receive Distributions andPreferred Equity to SVF2.”

As of April 1, 2021
Increase of receivables from Equity Acquisition Amount and accrued
premiums charged to third-party investor
Reduction of receivables by offsetting distribution/repayment to thirdparty investor
Exchange differences on receivables
As of December 31, 2021

(Millions of yen)
Receivables from third-party
investor in SVF2
330,246(19,104)
8,547
319,689c. Uncalled committed capital from Third-Party Investors
Uncalled committed capital from SVF1’s Third-Party Investors as of December 31, 2021 was $8.2 billion.

84

SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 2021

(5) Management fees and performance fees
Terms and conditions of 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 December 31, 2021, the cumulative amount of performance fees paid to SBIA
was $439 million. For the nine-month period ended December 31, 2021, no performance fees were paid to
SBIA.
In addition, the performance fees received are subject to clawback provisions which are triggered undercertain conditions based on future investment performance.
b. Management fees and performance 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.
Same as the performance-based distributions, the amount of the performance fees to SBGA from SVF2 iscalculated using the allocation method as specified in the constitutional agreement. SBGA is entitled toreceive the performance fees when SVF2 receives cash through disposition, dividend and monetization of aninvestment.
From the inception of SVF2 to December 31, 2021, no performance fees were paid to SBIA or SBGA.

85

SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 2021

5. Business combinations
For the nine-month period ended December 31, 2021
Acquisition of LINE Corporation and business integration of LINE Group and Z Holdings Corporation(Amendment of provisional amounts)
1

SoftBank Corp., a subsidiary of the Company, obtained control of LINE Corporation , effective February 28,
2021. The consideration for acquisition is allocated to the acquired assets and the assumed liabilities based on
the fair value on the acquisition date. For the three-month period ended September 30, 2021, the allocation of
the consideration for acquisition has been completed.
The main effects of the adjustments from the provisional amounts comprise of decrease in property, plant andequipment of ¥2,762 million, decrease in intangible assets including identifiable intangible assets of ¥14,092
million, decrease in deferred tax liabilities of ¥5,352 million, decrease in non-controlling interests of ¥5,861
million, and increase in goodwill of ¥5,861 million.
(1) Consideration transferred and the component(Millions of yen)
Acquisition date(February 28, 2021)
Fair value of common shares in LINE Corporation already held at thetime of acquisition of control
Fair value of common shares in Shiodome Z Holdings G.K. transferred

172,922
689,150at the time of acquisition of control
A

Total consideration transferred

86862,072

SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 2021

(2) Fair value of assets and liabilities, non-controlling interests and goodwill on the acquisition date(Millions of yen)
Acquisition date(February 28, 2021)
Cash and cash equivalents

312,791
67,553
46,687
21,90562,940395,947
167,873
104,809

Trade and other receivables
Other (current)
Property, plant and equipment
Right-of-use assets
2
Intangible assets
Investments accounted for using the equity method
Other (non-current)
Total assets

1,180,505

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

181,308
62,940233,671
49,169150,504
20,745

Total liabilities

698,337

Net assets
3

Non-controlling interests
Goodwill

4B

482,168

C

250,760

A-(B-C)630,664

Notes:
1. Refers to LINE Corporation, surviving company in the absorption-type merger conducted by Shiodome Z Holdings G.K.
LINE Corporation, the acquiree, transferred all business to LINE Split Preparation Corporation (currently, LINE
Corporation) and changed its name to A Holdings Corporation, effective February 28, 2021.
2. The amount of intangible assets includes ¥394,413 million of identifiable assets and the table below shows the breakdownof the identifiable assets. The estimated useful lives of customer relationships and technology assets are from 12 to 18
years and 8 years, respectively. The trademarks are classified as intangible assets with indefinite useful lives. The amountof intangible assets recognized from business combinations is measured based on assumptions such as estimated future
cash flows, discount rate, attrition rate of existing customers, future sales forecast generated by trademarks, and royalty
rate.
(Millions of yen)
Acquisition date(February 28, 2021)
Intangible assets with indefinite useful lives
Trademarks
Intangible assets with definite useful lives
Customer relationships
Technology assets

160,116
232,019
2,278

Total

394,41387

SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 2021

3. Non-controlling interests are measured at the fair values of the acquiree’s identifiable net assets as of the acquisition date,multiplied by the ratio of the non-controlling interests.
4. Goodwill reflects the ability to generate excess earnings resulting from expected future business development andsynergies between the Group and the acquiree.

6. Other financial assets
The components of other financial assets are as follows:
As ofMarch 31, 2021
Current
1
Restricted cash
Marketable securities
Time deposits (maturities of more than threemonths)Other
Allowance for doubtful accounts
Total
Non-current
Installment receivables
Loan receivables
Deposits for banking business
2
Receivables from MgmtCoTrust accounts in SPACs
Investments from asset management subsidiaries
Lease and guarantee deposits
Other
Allowance for doubtful accounts
Total(Millions of yen)
As ofDecember 31, 2021

480,100
80,797

301,837
112,895

36,31554,531

85,630(10,935)

153,632(16,033)

671,907606,862

481,943
390,073384,394
327,569
97,02373,355247,504(82,599)472,527
435,290
413,890399,809269,600
188,403
54,324
299,094(60,816)

1,919,262

2,472,121

Notes:
1. On April 13, 2021, the Company paid ¥313,411 million ($2.9 billion) from ¥361,355 million ($3.3 billion) of restricted cash
which was required to be maintained in a segregated custody account as of March 31, 2021, for the early termination of the
prepaid forward contract using Alibaba shares by cash. Accordingly, the Company completed the settlement of the prepaid
forward contract using Alibaba shares. Also, ¥47,944 million of the rest of the restricted cash was released from usage limit
and transferred to “Cash and cash equivalents” for the nine-month period ended December 31, 2021. The details are describedin “(2) Transactions for sale of Alibaba shares by prepaid forward contracts” under “Note 9. Interest-bearing debt.”
2. Receivables from MgmtCo is outstanding balance of the receivables in relation to the Equity Acquisition Amount and accrued
premiums from MgmtCo as a Third-Party Investor of SVF2 and SoftBank Latin America Funds. The receivables of SVF2 and
SoftBank Latin America Funds are ¥319,689 million and ¥80,120 million, respectively. The details of receivables aredescribed in “(1) Introduction of Co-investment Program with Restricted Rights to Receive Distributions and Preferred Equity
to SVF2” under “Note 4. SoftBank Vision Funds business” and “Note 19. Related party transactions.”

88SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 2021

7. Disposal group classified as held for sale
As of December 11, 2020, the Company agreed on main terms of a transaction with South Korea-based Hyundai
Motor Company and its affiliates (collectively “Hyundai Motor Group”) and Euisun Chung, Chairman ofHyundai Motor Group, pursuant to which (i) the Company would sell the majority of its shares held in Boston
Dynamics, Inc. (“Boston Dynamics”), to Hyundai Motor Group and Euisun Chung, and (ii) Hyundai Motor
Group and Euisun Chung would subscribe for additional shares of Boston Dynamics. Upon this agreement, it was
highly probable that Boston Dynamics would no longer be a subsidiary of the Company. Accordingly, assets,
liabilities, and accumulated other comprehensive income of Boston Dynamics were reclassified as a disposalgroup classified as held for sale for the fiscal year ended March 31, 2021. The disposal group classified as held
for sale was measured at the carrying amount as the consideration from the sale transaction was higher than the
carrying amount of Boston Dynamics. The carrying amounts of assets, liabilities, and accumulated othercomprehensive income in Boston Dynamics were ¥38,647 million, ¥11,271 million, and ¥267 million,
respectively as of March 31, 2021.
In addition, the transaction was completed following regulatory approval and satisfaction of certain conditions on
June 21, 2021. Boston Dynamics is no longer a subsidiary of the Company from the same date and the sharescontinuously held as a minority shareholder are measured at fair value and accounted for as financial instruments
at FVTPL. Accordingly, for the nine-month period ended December 31, 2021, the difference between theconsideration from the sale transaction (excluding the cost to sell) and the fair value of shares continuously held,
and the carrying amount of Boston Dynamics (assets, liabilities, accumulated other comprehensive income, andnon-controlling interests) was recorded as a gain relating to loss of control over subsidiaries for ¥72,936 million
under “Other gain (loss)” in the condensed interim consolidated statement of income.
8. Income taxes
For the nine-month period ended December 31, 2021
Due to the enactment of the UK Finance Act of 2021 in June 2021, the corporate tax rate was increased from 19%
to 25% on or after April 1, 2023. As a result, the Company reversed a deferred tax liability of ¥38,029 million(translated at the exchange rate as of March 31, 2021). In addition, credits of income taxes (profit) and othercomprehensive income (profit) were recorded for ¥31,953 million and ¥5,890 million, respectively. This is
primarily due to the fact that certain subsidiaries based in the UK, which were applicable for the calculation of
aggregation of income earned by controlled foreign companies in SoftBank Group Corp., will be expected to be
exempt from the calculation on or after April 1, 2023.

89SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 2021

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

As ofMarch 31, 2021

As ofDecember 31, 2021

Current
Short-term borrowings
Commercial paper
1
Current portion of long-term borrowings
Current portion of corporate bonds
Current portion of financial liabilities relating to2sale of shares by prepaid forward contracts
Current portion of installment payables
Total
Non-current
3Long-term borrowings
4
Corporate bonds
Financial liabilities relating to sale of shares by
2,5
prepaid forward contracts
Installment payables
Total

2,637,401
409,201
2,085,348
804,356

2,190,346
572,001
1,077,403
924,478

1,798,701

2,497,944

232

173

7,735,239

7,262,345

4,745,058
4,745,184

5,819,293
5,808,994

1,287,038

1,772,827

456

342

10,777,736

13,401,456

Notes:
1. SB Northstar had made a borrowing by using Alibaba shares pledged as collateral. For the nine-month period ended December
31, 2021, SB Northstar repaid all of its borrowing of $6.0 billion before the maturity date and the collateral for Alibaba shares
was released. The carrying amount of current portion of long-term borrowings is ¥662,596 million and the carrying amount of
Alibaba shares pledged as collateral, on a consolidation basis, which are included in “Investments accounted for using theequity method” is ¥302,048 million in the condensed interim consolidated financial position as of March 31, 2021.
2. These are primarily financial liabilities relating to sale of shares by prepaid forward contracts using Alibaba shares. The detailsof contracts are described in “(2) Transactions for sale of Alibaba shares by prepaid forward contracts.”
3. For the nine-month period ended December 31, 2021, long-term borrowings decreased by ¥481,260 million as an early
repayment was made for all of its borrowings of $4.38 billion using T-Mobile shares held by a wholly-owned subsidiary andAlibaba shares held by the Company pledged as collateral. Accordingly, on the same date, the collaterals for T-Mobile shares
and Alibaba shares were released. T-Mobile shares pledged as collateral are recorded for ¥1,474,356 million as “Investment
securities” in the condensed interim consolidated statement of financial position as of March 31, 2021. In addition, Alibaba
shares pledged as collateral are recorded for ¥42,381 million as “Investments accounted for using the equity method” in thecondensed interim consolidated statement of financial position as of March 31, 2021. In addition, “T-Mobile” indicates TMobile US, Inc. after merging with Sprint.
For the nine-month period ended December 31, 2021, the wholly-owned subsidiary of the Company made a borrowing of$2.65 billion by using T-Mobile shares held as collateral. As of December 31, 2021, ¥573,487 million of T-Mobile shares ispledged as collateral for ¥303,636 million of the long-term borrowing. T-Mobile shares pledged as collateral are included in“Investment securities” in the condensed interim consolidated statement of financial position as of December 31, 2021. In
addition, related to the transaction, Alibaba shares held by the Company are pledged as collateral. Alibaba shares pledged as

90

SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 2021

collateral are recorded for ¥22,871 million as “Investments accounted for using the equity method” in the condensed interim
consolidated statement of financial position as of December 31, 2021.
For the nine-month period ended December 31, 2021, the wholly-owned subsidiary of the Company procured €2.64 billion bycollar transactions using Deutsche Telekom AG (“Deutsche Telekom”) shares held. As of December 31, 2021, ¥479,741
million of Deutsche Telekom shares is pledged as collateral for ¥396,248 million of the long-term borrowings. Deutsche
Telekom shares pledged as collateral are included in “Investment securities” in the condensed interim consolidated statementof financial position as of December 31, 2021. The details of the acquisition of Deutsche Telekom shares are described in“Note 20. Additional information.” In addition, the collar contracts are classified as hybrid financial instruments withembedded derivatives and the embedded derivatives are measured at fair value.
4. Primarily, SoftBank Group Corp. issued the 5th unsecured subordinated bonds with interest deferrable clause and early
redeemable option (with a subordination provision) with June 21, 2021, as the due date for payment. Also, SoftBank Group
Corp. issued USD-denominated Senior Notes due 2025, 2026, 2028, and 2031, and Euro-denominated Senior Notes due 2024,
2027, 2029, and 2032 with July 6, 2021, as the due date for payment, and issued the 4th unsecured subordinated corporatebond (with a subordination provision) with September 16, 2021, as the due date for payment, and the 3rd unsecured
subordinated corporate bond (with a subordination provision) with September 30, 2021, as the due date for payment. As aresult, corporate bonds increased by ¥1,695,937 million.
5. For the nine-month period ended December 31, 2021, a wholly-owned subsidiary entered into prepaid forward contracts byusing T-Mobile shares and procured $1.81 billion. As of December 31, 2021, the Company pledges ¥239,253 million of TMobile shares held as collateral for ¥236,196 million of financial liabilities relating to sale of shares by prepaid forward
contracts. The shares pledged as collateral are included in “Investment securities” in the condensed interim consolidated
statement of financial position as of December 31, 2021.
The number of T-Mobile shares settled by the prepaid forward contracts is determined by reference to the market price of theshares at the valuation dates prior to the settlement dates. A cap and a floor are set for the price of shares settled. In addition,
the prepaid forward contracts are collar contracts and classified as hybrid financial instruments with embedded derivatives andthe embedded derivatives are measured at fair value.

(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 byreference to market price of the shares at the valuation dates prior to the settlement date. The latter type ofcontracts 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 forfund procurement by using Alibaba shares”), in addition to the prepaid forward contracts, enter into the callspread (combination of long position of call option and short position of call option with different strikeprices) 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 and 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
91

SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 2021

contracts, a tax effect is recognized.
The ending balance of the derivative financial assets and the derivative financial liabilities recognized fromthe prepaid forward contracts and the call spread contracts are described in “(1) Option contracts” and “(3)Forward contracts” under “Note 11. 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
right of use to the financial institutions with respect to such shares. However, the collateral can be released bycash settlement at the discretion of Entities for fund procurement by using Alibaba shares. Alibaba continues
to be an equity method associate of the Company after the completion of these transactions because theCompany still has significant influence over Alibaba via voting rights.
(For the fiscal year ended March 31, 2021)
For the fiscal year ended March 31, 2021, Entities for fund procurement by using Alibaba shares had
exercised the option to settle the prepaid forward contract by cash and provided a notice to the counterparty
for early termination in April 2021. Under the prepaid forward contract, Entities for fund procurement byusing Alibaba shares are required to maintain cash that would exceed expected early termination amounts in asegregated custody account as restricted cash before the expected early termination date. ¥361,355 million($3.3 billion) of the restricted cash is recognized as “Other financial assets (current)” in the condensed interim
consolidated statement of financial position as of March 31, 2021.
On April 13, 2021, Entities for fund procurement by using Alibaba shares paid ¥313,411 million ($2.9 billion)
from restricted cash and completed the settlement of the transactions. ¥285,780 million of current portion offinancial liabilities relating to sale of shares by prepaid forward contracts and ¥28,096 million of “Derivative
financial liabilities (current)” which were recognized in the condensed interim consolidated statement offinancial position as of March 31, 2021, were derecognized. Accordingly, on the same date, ¥61,633 millionof Alibaba shares recognized in the condensed interim consolidated statement of financial position as ofMarch 31, 2021 was released from the collateral.
(For the nine-month period ended December 31, 2021)
Entities for fund procurement by using Alibaba shares procured ¥329,852 million ($3.0 billion) in total
entering into collar contracts for the three-month period ended June 30, 2021, ¥812,502 million ($7.4 billion)
in total entering into collar contracts and a forward contract for the three-month period ended September 30,
2021, and ¥251,045 million ($2.2 billion) entering into a collar contract for the three-month period ended
December 31, 2021.
Also, for the three-month period ended September 30, 2021, a part of prepaid forward contracts has been
amended in terms of the cap and floor for the price of shares settled and the term of the contracts. The
amendments of the contracts are applicable for as exchanges of debt instruments with substantially different
terms under IFRS 9 “Financial Instruments,” and accounted for as extinguishments of the original financial
92

SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 2021

liabilities relating to sale of shares by prepaid forward contracts and the recognition of new financial liabilities
relating to sale of shares by prepaid forward contracts.
As a result of the amendments, upon the extinguishment of the original contracts, ¥776,580 million offinancial liabilities relating to sale of shares by prepaid forward contracts and ¥235,475 million of derivative
financial assets are derecognized. On the other hand, ¥514,172 million of new financial liabilities relating tosale of shares by prepaid forward contracts and ¥45,476 million of derivative financial assets are newly
recognized and ¥72,616 million of cash is paid as a difference in exchange value between the original and newcontracts. Further, along with the fluctuation of derivative financial assets, ¥62,674 million of deferred tax
liabilities is decreased and the same amount of income taxes is recognized as a gain, representing the tax
effect.
Further, for the three-month period ended December 31, 2021, the settlement date of a part of prepaid forward
contracts arrived and was settled by Alibaba shares. As a result, ¥179,309 million of current portion offinancial liabilities relating to sale of shares by prepaid forward contracts, ¥78,312 million of “Derivative
financial assets (current)” and ¥34,695 million of Alibaba shares included in “Investments accounted for using
the equity method” were derecognized from the condensed interim consolidated statement of financial
position, and ¥68,050 million of “Gain on investments at Investment Business of Holding Companies” wasrecorded in the condensed interim consolidated statement of income. Alibaba continues to be an equity
method associate of the Company after the completion of this transaction because the Company still has
significant influence over Alibaba via voting rights.
As of December 31, 2021, the Company set ¥1,146,209 million of Alibaba shares, which is recognized as“Investments accounted for using the equity method” in the condensed interim consolidated statement offinancial position, as collateral for ¥2,497,944 million of current portion of financial liabilities relating to saleof shares by prepaid forward contracts and ¥1,536,631 million of financial liabilities relating to sale of sharesby prepaid forward contracts.
(3) Components of proceeds in short-term interest-bearing debt, net
The components of “Proceeds in short-term interest-bearing debt, net” in the condensed interim consolidated
statement of cash flows are as follows:(Millions of yen)

Nine-month period ended Nine-month period ended
December 31, 2020
December 31, 2021
Net increase (decrease) of short-term borrowings
Net increase of commercial paper
Total

93

1,353,056
68,500(1,008,687)
95,4001,421,556(913,287)

SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 2021

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

Nine-month period ended Nine-month period ended
December 31, 2020
December 31, 2021
Proceeds from borrowings
Proceeds from issuance of corporate bonds
Proceeds from procurement by prepaid forward
contracts using shares*
Total

3,009,894
420,000

5,859,639
2,000,245

1,660,952

1,593,251

5,090,846

9,453,135

Note:* The amount was procured under the prepaid forward contracts using Alibaba shares and T-Mobile shares. The details aredescribed in “(2) Transactions for sale of Alibaba shares by prepaid forward contracts” and in “Notes 5” under “(1)Components of interest-bearing debt.”(5) Components of repayment of interest-bearing debt
The components of “Repayment of interest-bearing debt” in the condensed interim consolidated statement ofcash flows are as follows:(Millions of yen)

Nine-month period ended Nine-month period ended
December 31, 2021
December 31, 2020
Repayment of borrowings
Redemption of corporate bonds
Repayment of settlement of prepaid forward contracts
using shares*
Total(3,689,332)(328,186)(5,219,906)(842,217)-(319,487)(4,017,518)(6,381,610)

Note:* Primarily, the amount was paid due to the early settlement related to the prepaid forward contract using Alibaba shares. The
details are described in “(2) Transactions for sale of Alibaba shares by prepaid forward contracts.”

94SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 2021

10. Other financial liabilities (current)
The components of other financial liabilities (current) are as follows:(Millions of yen)
As ofDecember 31, 2021

As ofMarch 31, 2021
Borrowed securities in asset management
subsidiaries*
Non-controlling interests subject to possible
redemption
Allowance for financial guarantee contract losses
Derivative financial liabilities in asset management
subsidiaries
Other
Total

8,713

145,631-

37,15324,381

18,702

14,67363

18,191

61,832

65,958263,381Note:* The details are described in “e. Borrowed securities” in “(2) Significant accounting policies for the asset management
subsidiary” under “Note 2. Significant accounting policies.”

95

SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 2021

11. Financial instruments(1) Option contracts
The details of option contracts are mainly as follows:
Option contracts to which hedge accounting is not applied
As ofMarch 31, 2021

(Millions of yen)
As ofDecember 31, 2021

Carrying amount(fair value)

Carrying amount(fair value)

AssetsLong call option of listed stocks in asset
management subsidiaries
Short call option of listed stocks in asset

Liabilities

AssetsLiabilities

176,627-

154,800-

management subsidiaries
Contingent consideration relating to acquisition of1
T-Mobile shares
2
Prepaid forward contracts using Alibaba shares-(9,283)--

460,709-434,705-

661,615(28,096)

1,554,153-

Call spread contracts relating to prepaid forward2
contracts using Alibaba shares

42,059

-

3,243

-

Short call option for T-Mobile shares to Deutsche
3
Telekom-(204,821)-(74,229)

Notes:
1. 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.
2. 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 9. Interestbearing debt.”
3. The decrease was primarily due to the partial exercise of the call options by Deutsche Telekom. The details are described in “Note
20. Additional information.”96

SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 2021

(2) Swap contracts
The details of swap contracts are mainly as follows:
Swap contracts to which hedge accounting is not applied
As ofMarch 31, 2021

(Millions of yen)
As ofDecember 31, 2021

Carrying amount(fair value)

Carrying amount(fair value)

AssetsTotal return swap contracts of listed stocks in asset
management subsidiaries

Liabilities

7,057

Assets(5,390)Liabilities-(3)(3) Forward contracts
The details of forward contracts are mainly as follows:
Forward contracts to which hedge accounting is not applied
As ofMarch 31, 2021

(Millions of yen)
As ofDecember 31, 2021

Carrying amount(fair value)

Carrying amount(fair value)

AssetsForward contracts of listed stocks and others in
asset management subsidiaries
1
Prepaid forward contracts using Alibaba shares
2
Tender offer for WeWork shares

Liabilities

AssetsLiabilities

4,372

-

87

(60)

-

(76,823)

119,241--

Notes:
1. The details of prepaid forward contracts using Alibaba shares are described in “(2) Transactions for sale of Alibaba shares by
prepaid forward contracts” under “Note 9. Interest-bearing debt.”
2. In March 2021, a wholly-owned subsidiary of the Company other than SVF1 commenced a tender offer to purchase WeWorkcommon shares and preferred shares from certain shareholders other than the Company at a price of $19.19 per share for the total
amount of $922 million. The tender offer is considered as forward contracts and accounted for as derivatives. The difference
between the valuation amount of common shares and preferred shares expected to purchase and the expected acquisition amount
was recorded as “Derivative financial liabilities (current)” as of March 31, 2021. The tender offer was completed in April 2021
and the derivative financial liabilities are reversed and reduced from the initially recognized amount of the purchased commonshares and preferred shares for the nine-month period ended December 31, 2021.

97SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 2021

12. Foreign currency exchange rates
Exchange rates of the major currencies used for translating financial statements of foreign operations are as
follows:(1) Rate at the end of the period
(Yen)
As of
March 31, 2021
USD

As of
December 31, 2021

110.7116.84

CNY115.02
18.06(2) Average rate for the quarter
For the nine-month period ended December 31, 2020

USD
CNY

Three-month period ended
June 30, 2020Three-month period ended
September 30, 2020

107.7415.16

105.88
15.27(Yen)
Three-month period ended
December 31, 2020
104.4515.71

For the nine-month period ended December 31, 2021

USD
CNY

Three-month period ended
June 30, 2021

Three-month period ended
September 30, 2021

110.0017.01

110.47
17.09

98

(Yen)
Three-month period ended
December 31, 2021
113.6017.75

SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 2021

13. Equity(1) Other equity instruments
On July 19, 2017, the Company issued USD-denominated Undated Subordinated Non-Call 6 years Resettable
Notes and USD-denominated Undated Subordinated Non-Call 10 years Resettable Notes (collectively, the“Hybrid Notes”).
The Hybrid Notes are classified as equity instruments in accordance with IFRSs because the Company has theoption to defer interest payments, the notes have no maturity date, and the Company has an unconditionalright to avoid delivering cash or another financial asset except for distribution of residual assets on liquidation.
(2) Treasury stock
Changes in treasury stock are as follows:(Thousands of shares)

Nine-month period ended Nine-month period ended
December 31, 2020
December 31, 2021
Balance at the beginning of the period
1
Increase during the period

21,818
270,476

351,298
37,931

Decrease during the period(4,125)(368,196)

Balance at the end of the period

288,169

21,0332

Notes:
1. For the nine-month period ended December 31, 2021, due to purchases of treasury stock under the resolutions passed at theBoard of Directors meetings held on July 30, 2020, the number of treasury stock increased by 25,980 thousand shares(amount purchased ¥257,777 million) as part of “SoftBank announces ¥4.5 trillion ($41 billion) program to repurchase sharesand reduce debt” announced on March 23, 2020 (the “¥4.5 trillion program”). In addition, the purchases of treasury stock up
to ¥2 trillion have been completed based on the ¥4.5 trillion program with the completion of purchases of treasury stock under
the resolution. Moreover, due to purchases of treasury stock under the resolutions passed at the Board of Directors meeting
held on November 8, 2021, the number of treasury stock increased by 11,949 thousand shares (amount purchased ¥70,676
million.)
2. For the nine-month period ended December 31, 2021, the decrease was made mainly under the resolutions passed at the Boardof Directors meeting held on April 28, 2021 and May 12, 2021. The Company retired its treasury stock of 366,860 thousand
shares in total on May 11, 2021 and May 20, 2021. As a result of the transaction, retaining earnings and treasury stock
decreased by ¥2,475,817 million, respectively.

99

SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 2021

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

As ofMarch 31, 2021

As ofDecember 31, 2021

Equity financial assets at FVTOCI

24,09942,911

Debt financial assets at FVTOCI
Cash flow hedges

390
42,962394
39,497

270,878

1,185,177

338,329

1,267,979

Exchange differences on translating foreign
operations*
Total

Note:
* The increase was primarily due to a weaker yen against the major currencies such as the U.S. dollar and Chinese yuan
compared with the exchange rates as of March 31, 2021.

100

SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 2021

14. 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)

Nine-month period ended Nine-month period ended
December 31, 2020
December 31, 2021
Gain relating to settlement of prepaid forward1
contracts using Alibaba shares
2
Gain relating to sales of T-Mobile shares-

68,050421,755

3,149(92,459)

68,315

105,658(259,186)(577,602)

123,726

204,947
533,432
248,558
2,188

82,036(79,733)(4,211)13,808846,477

15,954

Realized gain (loss) on investments at asset
management subsidiaries
Unrealized gain (loss) on valuation of investments at
asset management subsidiaries
Derivative gain (loss) on investments at asset
management subsidiaries
Realized gain on investments
Unrealized gain (loss) on valuation of investments
3
Derivative gain (loss) on investments
Other
Total
Notes:

1. A part of prepaid forward contracts using Alibaba shares was settled by Alibaba shares. The details of contracts are describedin “(2) Transactions for sale of Alibaba shares by prepaid forward contracts” under “Note 9. Interest-bearing debt.”
2. On September 23, 2021, Deutsche Telekom partially exercised the call options over 45,366,669 shares out of 101,491,623
shares of T-Mobile held through a wholly-owned subsidiary of the Company and the wholly-owned subsidiary acquired newly
issued 225,000,000 shares of Deutsche Telekom as its consideration. As a result, ¥3,149 million of gain relating to sales of TMobile shares was recorded for the nine-month period ended December 31, 2021. Cumulative losses on T-Mobile shares andthe call options associated with the transaction are ¥13,447 million. Of this, ¥16,596 million of loss was recorded for the fiscal
year ended March 31, 2021. The details are described in “Note 20. Additional information.”
3. For the nine-month period ended December 31, 2021, ¥30,260 million of derivative loss on investments was recorded due tochanges in the fair value of contingent consideration related to the acquisition of T-Mobile shares through the merger
transaction with Sprint and T-Mobile US, Inc. The details of contingent consideration are described in “Notes 1” in “(1)Option contracts” under “Note 11. Financial instruments.”(2) Gain and loss on investments at SVF1, SVF2, and others
The details are described in “Note 4. SoftBank Vision Funds business.”101SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 2021

(3) Gain and loss on investments at Latin America Funds
The components of gain and loss on investments at Latin America Funds are as follows:(Millions of yen)

Nine-month period ended Nine-month period ended
December 31, 2020
December 31, 2021
Realized loss on investments
Unrealized gain on valuation of investments
Change in valuation for the fiscal year
Reclassified to realized loss recorded in the past1
fiscal year
Derivative gain (loss) on investments
2
Effect of foreign exchange translation
Other
Total

-

(9,114)

124,643

136,761

-

8,034

219
71

(127)
364
816

124,933

136,734

Notes:
1. It represents the unrealized gain and loss on valuation of investments recorded as “Gain (loss) on investments at Latin
America Funds” in the past fiscal years, which are reclassified to “Realized gain (loss) on investments” due to the realization
for the nine-month period ended December 31, 2021.
2. 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.

Also, in SoftBank Latin America Funds, SoftBank Group Corp. introduced a co-investment program withrestricted right to receive distributions in September 2021. The details are described in “Note 19. Related party
transactions.”

102SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 2021

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

Nine-month period ended Nine-month period ended
December 31, 2020
December 31, 2021
Interest expenses(224,322)(282,764)

16. Derivative gain (loss) (excluding gain (loss) on investments)
For the nine-month period ended December 31, 2021, derivative gain of ¥1,058,206 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 9. Interest-bearing debt.”

17. Other gain (loss)
The components of other gain and loss are as follows:(Millions of yen)

Nine-month period ended Nine-month period ended
December 31, 2020
December 31, 2021
Interest income
Foreign exchange gain (loss)
1
Gain relating to loss of control over subsidiaries
2

Dilution gain from changes in equity interest

Reversal of impairment losses on equity method3
investments
Reversal of allowance for loan commitment losses
Gain on liquidation of subsidiaries
Reversal of allowance for financial guarantee
contract losses
Other
Total

11,422
87,110-27,094(277,372)
115,835

45,63155,859-39,993

46,91842,603-35,528-(17,966)(151)

251,246(38,742)

Notes:
1. Primarily recorded as Boston Dynamics was no longer a subsidiary of the Company. The details are described in “Note 7.
Disposal group classified as held for sale.”
2. Primarily represents the dilution gain arising from changes in Alibaba’s equity interest held by the Company due to theexercise of stock options in Alibaba.
3. ¥39,993 million of reversal of impairment losses was recorded as the fair value of WeWork shares accounted for using theequity method increased.

103SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 2021

18. Supplemental information to the condensed interim consolidated statement of cash flows(1) Cash flows from discontinued operations
Cash flows from continuing operations and cash flows from discontinued operations are included in thecondensed interim consolidated statement of cash flows.
(2) Income taxes paid and income taxes refunded
For the nine-month period ended December 31, 2021
Payment of withholding income tax related to dividends within the group companies of ¥270,867 million is
included in “Income taxes paid.”
In addition, refunded withholding income tax related to dividends within the group companies of ¥247,259
million is included in “Income taxes refunded.”(3) Proceeds from withdrawal of restricted cash
For the nine-month period ended December 31, 2021
¥359,038 million of proceeds, which was required to be maintained in a segregated custody account for the
early termination of financial liabilities related to the settlement of prepaid forward contracts using Alibaba
shares as of March 31, 2021, is included in “Proceeds from withdrawal of restricted cash.” The details aredescribed in “(2) Transactions for sale of Alibaba shares by prepaid forward contracts” under “Note 9.
Interest-bearing debt.”(4) Significant non-cash transactions
For the nine-month period ended December 31, 2021
Deutsche Telecom partially exercised the call option over T-Mobile shares which the Company granted inJune 2020. Accordingly, the Company sold 45,366,669 shares of T-Mobile held, through a wholly-owned
subsidiary, to Deutsche Telecom and received newly issued 225,000,000 shares of Deutsche Telecom as its
consideration. The transaction corresponds to a non-cash transaction. The details are described in “Note 20.
Additional information.”
In addition, for the three-month period ended December 31, 2021, the settlement date of a part of prepaid
forward contracts arrived, and ¥179,309 million of current portion of financial liabilities relating to sale ofshares by prepaid forward contracts and ¥78,312 million of “Derivative financial assets (current)” were settled
by Alibaba shares. The details are described in “(2) Transactions for sale of Alibaba shares by prepaid forward
contracts” under “Note 9. Interest-bearing debt.”

104

SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 2021

19. Related party transactions
The Board of Directors of SoftBank Group Corp. has resolved to introduce a co-investment program withrestricted rights to receive distributions to SVF2 and SoftBank Latin America Funds. As such, for the three-month
period ended September 30, 2021, SVF2 LLC, a subsidiary of SVF2 and a subsidiary of the Company, and SLA
Holdco II LLC (“SLA LLC”), a subsidiary of SoftBank Latin America Funds, and a subsidiary of the Company,
have each entered into a definitive agreement with the Company and MgmtCo, a participant in the program,which resulted in MgmtCo becoming an investor in SVF2 LLC and SLA LLC.
MgmtCo 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 program has been introduced for the
purpose of enabling Masayoshi Son to make a co-investment in SVF2 and SoftBank Latin America Funds with
the Company, sharing risk of losses as well as benefit of profits in the success of SVF2 and SoftBank Latin
America Funds, and leading to enhanced focus on the management of investments held by them, which in turn isintended to contribute to increases in the Company’s earnings. In making a co-investment in SVF2 and SoftBank
Latin America Funds under the terms of the program, MgmtCo both receives the benefit of profits and assumes
the risk of losses from SVF2 and SoftBank Latin America Funds, and MgmtCo’s right to 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 madethrough SoftBank Vision Fund II-2 L.P. and its subsidiaries, and its investment in SLA LLC is made through
SBLA Latin America Fund LLC and its subsidiaries.

105SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 2021

Related party transactions of the Company are as follows:(1) Transactions between SVF2 and related parties（Millions of yen）
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

For the nine-month
period ended
December 31, 2021
Amount oftransaction

Receipt of capital
contribution and related
1,2,3
adjustments to SVF2

326,942($2,923 million)

The premium received
on SVF2 LLC’s
receivables

3,304($29 million)

Offsetting settlement of
distributions (return ofcontribution) from SVF2
5
LLC and receivables

19,104($173 million)

MgmtCo’s Equity
8
interests in SVF2 LLC

-

4

As of
December 31, 2021
Balance atperiod end
6,7

319,689($2,779 million)

4

Net balance at period end(Receivables in SVF2 LLC less9
MgmtCo’s Equity interests in SVF2 LLC)

319,178($2,775 million)

511($4 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 theaggregate fair value of all of SVF2 LLC’s unrealized investments (net of borrowings) exceeds 130% of the aggregate acquisition
cost of all of SVF2 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 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 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 separately by
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.

106

SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 2021

3. Management fee and performance fees to be charged to MgmtCo
The terms of the management fee and performance fee to be charged to MgmtCo are the same as those to be charged to theCompany as an Equity investor in SVF2 LLC.
4. The amount of transaction with MgmtCo related to receipt of capital contribution
The amount of the transaction for “Receipt of capital contribution and related adjustments in SVF2 LLC” is MgmtCo’s Equity
Acquisition Amount in SVF2 LLC, which consists of ¥290,142 million ($2,594 million) 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 and ¥35,150
million ($314 million) of related adjustments calculated based on 17.25% interest in the increase in the portfolio companies’ fairvalue from the initial acquisition costs at SVF2 to June 30, 2021, and ¥1,650 million ($15 million) of the adjustment equivalent tointerests for the period from the Company’s contribution to SVF2 until June 30, 2021. As of December 31, 2021, capital
contribution with respect to MgmtCo’s committed capital and related adjustments to SVF2 LLC under the Program have been
completed.
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’s receivables” refers to the amount of such premium accrued in the current period. MgmtCo is also entitled to make full or
partial payment of the premium at any point in time, at its discretion on the same terms and conditions as Equity Acquisition
Amount.
5. Offsetting settlement between distributions from SVF2 LLC and receivables
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.
6. 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, less any decrease in receivables due to offsetting settlement with distributions to
MgmtCo.
7. 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 December 31, 2021,
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.
8. 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 SVF1 and SVF2” in the condensed interim consolidated statement of financial position.
9. Net balance at period end
Net balance at period end is the balance of receivables held by SVF2 LLC of ¥319,689 million ($2,779 million) less MgmtCo’s
Equity interest in SVF2 LLC of ¥319,178 million ($2,775 million).

107

SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 2021

(2) Transactions between SoftBank Latin America Funds and related parties（Millions of yen）
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

For the nine-month
period ended
December 31, 2021
Amount oftransaction

Receipt of capital
contribution in SLA
LLC and related
1, 2, 3
adjustments

76,367($691 million)

The premium received
on SLA LLC’s
receivables

600($5 million)

MgmtCo’s Equity
7
interests in SLA LLC-

4

Net balance at period end(Receivables in SLA LLC less8
MgmtCo’s Equity interests in SLA LLC)

As of
December 31, 2021
Balance atperiod end
5, 6

80,120($696 million)

480,120($696 million)-

Notes:
1. Restrictions on rights to receive distributions to MgmtCo
MgmtCo’s rights 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 separately by
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. Management fee and performance fees to be charged to MgmtCo
The terms of the management fee and performance fee to be charged to MgmtCo are the same as those to be charged to theCompany as an Equity investor in SLA LLC.

108

SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 2021

4. The amount of transaction with MgmtCo related to receipt of capital contribution
The amount of the transaction for “Receipt of capital contribution and related adjustments in SLA LLC” is MgmtCo’s Equity
Acquisition Amount in SoftBank Latin America Funds, which consists of ¥45,060 million ($408 million) calculated based on
MgmtCo’s Equity interests of 17.25% in the SoftBank Latin America Funds’ initial acquisition costs of the portfolio companies
held by SoftBank Latin America Funds and ¥30,535 million ($276 million) of related adjustments calculated based on 17.25%
interest in the increase in the portfolio companies’ fair value from the initial acquisition costs at SoftBank Latin America Funds
to June 30, 2021, and ¥772 million ($7 million) of the adjustment equivalent to interests for the period from the Company’scontribution to SoftBank Latin America Funds until June 30, 2021.As of September 30, 2021, capital contribution with respect to
MgmtCo’s committed capital and related adjustments to SLA LLC under the Program have been completed.
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 premium of
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 make full 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 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.
5. 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.
6. 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 amounts of
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 December 31, 2021,
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 enforcement of
the collateral and personal guarantees by SLA LLC.
7. 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“Other financial liabilities (non-current)” in the condensed interim consolidated statements of financial position.
8. Net balance at period end
Net balance at period end is the balance of receivables held by SLA LLC of ¥80,120 million ($696 million) less MgmtCo’s
Equity interest in SLA LLC of ¥80,120 million ($696 million).

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For the Nine-Month Period Ended December 31, 2021

20. Additional information(Partial sale of T-Mobile shares for the nine-month period ended December 31, 2021)
On September 6, 2021, the Company entered into a master framework agreement (“the Agreement”) with
Deutsche Telekom, pursuant to which Deutsche Telekom agreed to partially exercise its right to acquire theshares of T-Mobile in accordance with the terms of the call options (the “Call Options”) granted by the Company
to Deutsche Telekom in June 2020, and to amend certain execution conditions. Following the exercise of the Call
Options, the Company sold 45,366,669 shares of T-Mobile held, though a wholly-owned subsidiary of theCompany, to Deutsche Telekom and received newly issued 225,000,000 shares of Deutsche Telekom as its
consideration. Under the Agreement, Deutsche Telekom also provided its consent for the Company to haveadditional flexibility to pledge its T-Mobile shares in connection with the entry into margin loans and othermonetization transactions and agreed that it will prioritize the use of cash proceeds from certain divestitures toexercise the additional Call Options for cash up to an aggregate of $2.4 billion of total exercise price, subject tocertain conditions. Following entry into the Agreement, the Company carried out the monetization transactions
using T-Mobile shares and Deutsche Telekom shares.
(1) Outline of the Call Options to Deutsche Telekom
In June 2020, the Company granted to Deutsche Telekom the Call Options over 101,491,623 shares of TMobile.
a. For the Call Options over 44,905,479 shares (the “Fixed Call Options”), a strike price of the call option is$101.455 per a share. Deutsche Telekom can exercise the Call Options any time after the grant date.
b. For the Call options over 56,586,144 shares (the “Floating Call Options”), a strike price of the call option isequal to the average of the daily volume-weighted average price of the shares of T-Mobile for each of the
20 trading days immediately prior to exercise. Deutsche Telekom can exercise the Call Options after the
exercise of rights described in the above a. from October 2, 2020 to May 22, 2024 and, after May 22, 2024,
can exercise any time regardless of the exercise of rights described in the above a.
Note:* The Call Options expire on June 22, 2024, unless certain events occur that trigger an earlier expiration date.

(2) Partial exercise of the Call Options
On September 23, 2021, Deutsche Telekom exercised the Fixed Call Options for 26,348,874 shares and the
Floating Call Options for 19,017,795 shares and a wholly-owned subsidiary of the Company received newly
issued 225,000,000 shares of Deutsche Telekom as its consideration. Adjustments were made for a strike priceof the Floating Call Options to be equal to the acquired 225,000,000 shares of Deutsche Telekom from thepartial exercise of the Call Options.
(3) Change in conditions for the unexercised Call Options
A strike price of the Floating Call Options was changed to the lesser of the following a. and b.

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For the Nine-Month Period Ended December 31, 2021

a. The average of the daily volume weighted average prices of T-Mobile shares for the 20 scheduled trading
days beginning on, and including, the Scheduled Trading Day immediately following the date of delivery of
the Notice of Exercise.
b. The average of the daily volume weighted average prices of T-Mobile shares for (a) the period of 20
Trading Days ending with the date of delivery of the Notice of Exercise (or ending on the immediately
preceding Trading Day if the date of delivery of the Notice of Exercise is not a Trading Day) and (b) the 20
Scheduled Trading Days beginning on, and including, the Scheduled Trading Day immediately following
the date of delivery of the Notice of Exercise.
In addition, the expiration time for the unexercised Call Options is May 28, 2024 and the Call Options can be
exercised at any time.
(4) Number of T-Mobile shares to be sold by partial exercise of the Call Options, number of shares subject to theunexercised Call Options and number of the shares held by the Company before/after the transactions
a. Number of shares held before the partial exercise

106,291,623 sharesb. Number of the sold shares by the partial exercise

45,366,669 sharesc. Number of shares held after the partial exercise

60,924,954 sharesd. Number of shares subject to the unexercised Call Options

56,124,954 sharese. Number of shares held after the Call Options are exercised*

4,800,000 shares

Note:* Calculated on the assumption that the Call Options are fully exercised.

(5) Outline of the monetization
For the nine-month period ended December 31, 2021, a wholly-owned subsidiary of the Company procured$1.81 billion through prepaid forward contracts by using 17,935,000 shares of T-Mobile and $2.65 billion
through a new margin loan by using 42,989,954 shares of T-Mobile pledged as collateral, and made an early
repayment of $4.38 billion of the previous margin loan by using 106,291,623 shares of T-Mobile pledged ascollateral. In addition, €2.64 billion was procured through collar transactions by using 225,000,000 shares ofDeutsche Telekom. The details are described in “Notes 3 and 5” in “(1) Components of interest-bearing debt”
under “Note 9. Interest bearing debts.”

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For the Nine-Month Period Ended December 31, 2021

21. Subsequent events(1) Issuance of the Bond
SoftBank Group Corp. issued the 5th unsecured subordinated corporate bond (the “Bond”) and the terms andconditions are as follows:
The 5th Unsecured Subordinated Corporate Bond(a) Total amount of issue¥550,000 million(b) Denomination per bond¥1 million(c) Interest rate

2.48% per annum(d) Issue price

100% of the denomination per bond(e) Redemption price

100% of the denomination per bond(f) Term

7 years(g) Maturity dateFebruary 2, 2029(h) Redemption

The Bond will be redeemed in full upon maturity. The Bond may also be
repurchased and redeemed at any time commencing from the first day
following the closing date, subject to requirements of the book-entry
transfer institution.

(i) Interest payment dates

February 4 and August 4 of each year(j) Issue dateFebruary 4, 2022(k) Collateral

No collaterals are set up for the Bond and no assets are specificallyreserved to secure the Bond.

(l) Guarantee

None(m) Covenants

None
Allocated to cash reserves which have decreased due to the repayment ofborrowing in December 2021, the redemption of the domestic subordinated(n) Use of proceeds

bond that will reach the maturity in February 2022 and a part of theredemption of the domestic senior bond that will reach the maturity inDecember 2022.

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For the Nine-Month Period Ended December 31, 2021

(2) Termination of Agreement to sell Arm shares
On September 13, 2020 (U.S. time), SoftBank Group Capital Limited, a wholly-owned subsidiary (“SBGC”),
and SVF1 entered into a definitive agreement (the “Agreement”) with NVIDIA Corporation (“NVIDIA”), a
U.S.-based semiconductor manufacturer, whereby the Company would sell all of its shares in Arm, a whollyowned subsidiary, held by SBGC and SVF1 to NVIDIA (the “Transaction”).
However, NVIDIA and the Company have agreed to terminate the Agreement on February 8, 2022, becauseof significant regulatory challenges preventing the consummation of the Transaction, despite good faith efforts
by the parties.
In accordance with the terms of the Agreement, the deposit of $1.25 billion* received by SBGC at the time ofsigning is non-refundable and therefore such amount will be recognized as profit for the three-month period
ending March 31, 2022.
Note:* 24.99% is attributable to SVF1 in accordance with the ownership ratio of Arm shares.

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