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 Six-month Period Ended September 30, 2019 (IFRS)Tokyo, November 6, 20191.

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

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

OperatingincomeIncomebefore incometax

Net income

Net income
Total
attributable tocomprehensive
owners of theincomeparentAmount%AmountAmountAmountSix-month period ended¥4,651,724 (0.0) ¥(15,552)
September 30, 2019-

Net sales
AmountSix-month period ended
September 30, 2018%%

Amount%¥1,116,897 (20.3) ¥532,185 (38.9) ¥421,552 (49.8) ¥(47,718)-¥4,653,853 5.5 ¥1,420,716 62.4 ¥1,402,089 540.2 ¥870,670

Basic earnings per
share (Yen)

Diluted earnings per
share (Yen)Six-month period ended
September 30, 2019¥195.66¥190.30

Six-month period ended
September 30, 2018¥378.11¥376.13%%505.7 ¥840,103 718.6 ¥1,059,084 105.8

Note:
The Company conducted a share split at a ratio of two-for-one effective June 28, 2019. “Basic earnings per share” and “Diluted
earnings per share” are calculated assuming that the share split was conducted at the beginning of the previous fiscal year.

(2) Financial Position

Total assets

Total equity

Equityattributable toowners of theparentAs of September 30, 2019¥36,848,701¥8,623,626¥7,312,274

19.8

As of March 31, 2019

¥36,096,476¥9,009,204¥7,621,481

21.1

2.

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

Dividends
Dividends per shareFirst quarter
Fiscal year ended
March 31, 2019
Fiscal year ending
March 31, 2020
Fiscal year ending
March 31, 2020
(Forecasted)

Second quarter

Third quarter

Fourth quarter

Total

(Yen)

(Yen)

(Yen)

(Yen)

(Yen)

-

22.00

-

22.00

44.00

-

22.00
-

22.00

44.00

Notes:
1. Revision of the latest forecasts on the dividends: No
2. The Company conducted a share split at a ratio of two-for-one effective June 28, 2019. The dividend for the fiscal year ended
March 31, 2019 is actual dividend amount before the share split.

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

As of September 30, 2019:2,089,814,330 shares
As of March 31, 2019:
2,201,320,730 shares[2] Number of shares of treasury stock:
As of September 30, 2019:18,572,328 shares
As of March 31, 2019:93,653,848 shares[3] Number of average shares outstanding during six-month period (April-September):
As of September 30, 2019:
2,076,940,623 shares
As of September 30, 2018:
2,179,181,961 shares
Note:
The Company conducted a share split at a ratio of two-for-one effective June 28, 2019. “Number of shares issued,” “Numberof shares of treasury stock,” and “Number of average shares outstanding during three-month period” are calculated assumingthat the share split was conducted at the beginning of the previous fiscal year.

* This condensed interim consolidated financial report is not subject to interim review procedures by certified public
accountants or an audit firm.
* Note to forecasts on the consolidated results of operations and other items
Descriptions regarding the future are estimated based on the information that the Company is able to obtain at the present
point in time and assumptions which are deemed to be reasonable. However, actual results may be different due to various
factors.
On November 6, 2019 (JST), the Company will hold an earnings results briefing for the media, institutional investors, andfinancial institutions. This earnings results briefing will be broadcast live on the Company’s website in both Japanese andEnglish at https://group.softbank/en/corp/irinfo/presentations/. The Data Sheet will also be posted on the website on thesame day at the same site.

SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 30, 2019

(Appendix)

Contents
1. Results of Operations ................................................................................................................................................... P. 3
(1) Overview of Results of Operations ........................................................................................................................ P. 3
a. Consolidated Results of Operations ................................................................................................................... P. 4
b. Results by Segment ........................................................................................................................................... P. 9(a) SoftBank Vision Fund and Delta Fund Segment ......................................................................................... P. 10(b) SoftBank Segment ....................................................................................................................................... P. 14(c) Sprint Segment ............................................................................................................................................ P. 15(d) Arm Segment .............................................................................................................................................. P. 17(e) Brightstar Segment ...................................................................................................................................... P. 20(f) Other ............................................................................................................................................................ P. 20(2) Overview of Financial Position ............................................................................................................................ P. 21(3) Overview of Cash Flows ...................................................................................................................................... P. 27(4) Forecasts ............................................................................................................................................................... P. 29
2. Notes to Summary Information ............................................................................................................................... P. 31(1) Changes in Accounting Policies ........................................................................................................................ P. 31(2) Changes in Accounting Estimates ..................................................................................................................... P. 31
3. Condensed Interim Consolidated Financial Statements and Primary Notes ............................................................ P. 32(1) Condensed Interim Consolidated Statement of Financial Position .................................................................... P. 33(2) Condensed Interim Consolidated Statement of Income and Condensed Interim Consolidated Statement ofComprehensive Income ..................................................................................................................................... P. 35(3) Condensed Interim Consolidated Statement of Changes in Equity ................................................................... P. 39(4) Condensed Interim Consolidated Statement of Cash Flows .............................................................................. P. 43(5) Significant Doubt about Going Concern Assumption ....................................................................................... P. 45(6) Notes to Condensed Interim Consolidated Financial Statements ...................................................................... P. 45
Definition of Company Names and Abbreviations Used in This Appendix
Company names and abbreviations used in this appendix, unless otherwise stated or interpreted differently in the context,
are as follows:
Company names / Abbreviations

Definition

SoftBank Group Corp.
SoftBank Group Corp. (stand-alone basis)
The Company
SoftBank Group Corp. and its subsidiaries*Each of the following abbreviations indicates the respective company and its subsidiaries, if any.
SoftBank Vision Fund
SoftBank Vision Fund L.P. and its alternative investment vehicles
Delta FundSB Delta Fund (Jersey) L.P.
SBIA
SB Investment Advisers (UK) Limited
SprintSprint Corporation
Arm
Arm Limited
Alibaba
Alibaba Group Holding Limited
The first quarter
Three-month period ended June 30, 2019
The second quarter
Three-month period ended September 30, 2019
The period
Six-month period ended September 30, 2019
The fiscal year
Fiscal year ending March 31, 2020
The previous fiscal year
Fiscal year ended March 31, 2019
The previous fiscal year-end
March 31, 20191

SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 30, 2019

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

USD / JPY

Fiscal year ending March 2020

Q1

Q2

Q3

Q4

Q1

Q2

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

Rates at the end of the period
March 31, 2019

September 30, 2019

USD / JPY

¥110.99¥107.92

GBP / JPY

¥144.98¥132.69

Adoption of IFRS 16
In the first quarter, the Company adopted IFRS 16 “Leases.” Due to the adoption of IFRS 16, the cumulative impact of the
adoption was recognized as an adjustment to the balance of retained earnings on the date of adoption (April 1, 2019), andthe Company has not adjusted the presentation of information of the previous fiscal year. The Company does not adopt
IFRS 16 with respect to lease transactions of intangible assets. See “1. Significant accounting policies” under “(6) Notes
to Condensed Interim Consolidated Financial Statements” in “3. Condensed Interim Consolidated Financial Statements
and Primary Notes” for details.

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

Consolidated Statement of Income
The expenses related to operating leases, recorded as right-of-use assets and lease liabilities on the date of the adoption,
are recorded as depreciation and interest expenses instead of lease expenses as recorded previously.

2SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 30, 2019

1. Results of Operations(1) Overview of Results of Operations
1. Highlights of results
 Operating loss of ¥15.6 billion (deteriorated ¥1.4 trillion yoy)
- Operating loss from SoftBank Vision Fund and Delta Fund was ¥572.6 billion; reflecting unrealized
valuation loss (net) of ¥537.9 billion from investments held at the second quarter-end due to a decrease in thefair values of investments including Uber and WeWork and its three affiliates. 1
 Net income attributable to owners of the parent of ¥421.6 billion (decreased 49.8% yoy)
- Loss from financial instruments at FVTPL (net) of ¥351.8 billion*; reflecting a valuation loss of ¥374.7
billion recorded for the investment in WeWork held by a wholly owned subsidiary of the Company.
- Income on equity method investments of ¥449.8 billion; includes a gain of ¥277.2 billion associated with thereceipt of Ant Financial shares by Alibaba.
- Gain relating to settlement of variable prepaid forward contract using Alibaba shares of ¥1,218.5 billion:
impact on income was ¥856.8 billion, net of the ¥361.8 billion* impact on income taxes caused by a reversalof deferred tax assets.
- Finance cost of ¥303.5 billion*- Change in third-party interests in SoftBank Vision Fund and Delta Fund of ¥180.8 billion* recorded as a cost for the period

2. Highlights of operations
 Support from the Company to WeWork accompanying significant funding commitment was agreed on
October 22, 2019 (ET) SoftBank Vison Fund
- The investment period ended on September 12, 2019, after the accumulated investment amount 2 exceeded
85% of total committed capital.
- Held 88 investments as of the second quarter-end.
- Preparations for the full-scale launch of “SoftBank Vision Fund 2” are underway.
 The Federal Communications Commission (FCC) announced its approval with conditions of the merger ofSprint and T-Mobile on November 5, 2019 (ET).

3

SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 30, 2019a. Consolidated Results of Operations(Millions of yen)Six months ended September 30
2018

2019

ChangeNet sales
Operating income (excluding income from
SoftBank Vision Fund and Delta Fund)
Operating income from SoftBank Vision
Fund and Delta Fund

4,653,853

4,651,724(2,129)(0.0%) A

788,282

557,087(231,195)(29.3%) B

632,434(572,639)(1,205,073)- C

Operating income

1,420,716(15,552)(1,436,268)-

Finance cost

(322,342)(303,538)

18,804(5.8%) D

Income on equity method investments

110,338

449,846

339,508

307.7% E

Foreign exchange gain (loss)

29,942(5,723)(35,665)-

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

42,407(111,306)(153,713)- F-

1,218,527

1,218,527- G

203,866(351,781)(555,647)- H(199,757)

180,775

380,532-

Other non-operating income

116,919

55,649(61,270)(52.4%)

1,402,089

1,116,897(285,192)(20.3%)(531,419)(584,712)(53,293)

10.0%

Net income

870,670

532,185(338,485)(38.9%)Net income attributable to owners of the parent

840,103421,552(418,551)(49.8%)

Total comprehensive income
Comprehensive income attributable to ownersof the parent

1,059,084(47,718)(1,106,802)-

999,177(137,296)(1,136,473)-

Income before income tax
Income taxes

Change %I

Notes:
1. Indicates gain and loss arising from changes in the fair values of investments held by the Company outside of SoftBank Vision
Fund and Delta Fund.
2. Indicates the sum of distributions to third-party investors in proportion to their interests in fixed distributions and performancebased distributions. The distributions are based on the gain and loss on investments at both funds, net of management and performance fees payable to SBIA, the Company’s wholly owned subsidiary and manager of SoftBank Vision Fund, and operating andother expenses of the funds. See “(2) Third-party interests in SoftBank Vision Fund and Delta Fund” under “3. SoftBank Vision
Fund and Delta Fund business” in “(6) Notes to Condensed Interim Consolidated Financial Statements” in “3. Condensed Interim
Consolidated Financial Statements and Primary Notes” for details.

4SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 30, 2019

The following is an overview of main components and components that are noteworthy.
A Net Sales
Net sales increased in the SoftBank segment, but decreased in the Sprint, Arm, and Brightstar segments.
B Operating Income (Excluding Income from SoftBank Vision Fund and Delta Fund)
Segment income improved ¥36,801 million in the SoftBank segment and ¥5,978 million in the Brightstar segment.
However, segment income deteriorated ¥90,859 million in the Sprint segment, ¥168,044 million in the Arm segment,and ¥21,232 million in the Other segment. Segment income of the Arm segment in the same period of the previous
fiscal year included gain relating to loss of control over subsidiaries of ¥176,261 million, which was recognized as aresult of Arm’s Chinese subsidiary becoming a joint venture.

C Operating Income from SoftBank Vision Fund and Delta Fund
Unrealized loss on valuation of ¥537,932 million from investments held at the second quarter-end was recorded due
to a decrease in the fair values of investments including Uber Technologies, Inc. (“Uber”) and The We Company(“WeWork”) and its three affiliates.1 See “(a) SoftBank Vision Fund and Delta Fund Segment” under “b. Results by
Segment” and “Loss of Investments in WeWork and Its Affiliates” below for details.

As a result of B and C, operating loss was ¥15,552 million, deteriorating ¥1,436,268 million year on year.

D Finance Cost
Interest expenses increased ¥14,205 million at SoftBank Corp. but decreased ¥43,165 million at SoftBank Group
Corp. 3 This was mainly because SoftBank Corp. made borrowings through a senior loan of ¥1,600 billion in August
2018 in preparation for listing and used the entire amount for repayment of its borrowings from SoftBank Group
Corp., which in turn used the entire amount to partially repay its own senior loan. This early repayment of borrowings
resulted in a full amortization of borrowing expenses of ¥24,051 million, which also pushed up interest expense at
SoftBank Group Corp. in the same period of the previous fiscal year.

E Income on Equity Method Investments
Income on equity method investments related to Alibaba increased ¥330,888 million (272.1%) year on year, to¥452,504 million. Alibaba received newly issued shares (a 33% equity interest) of Ant Small and Micro Financial
Services Group Co., Ltd. (“Ant Financial,” operator of the electronic payment service Alipay) in September 2019,
pursuant to the 2014 share and asset purchase agreement, as amended, among Alibaba, Ant Financial, and others.
The consideration paid by Alibaba to receive the newly issued 33% equity interest in Ant Financial was funded by
payments from Ant Financial and its subsidiaries to Alibaba in consideration for certain intellectual property rights
and assets held by Alibaba. Following this, Alibaba recorded a gain of CNY 69.2 billion, which was the results fromthe transfer of such intellectual property rights and assets to Ant Financial and the basis difference determined basedon Alibaba’s share of Ant Financial’s net assets, net of its corresponding deferred tax effect. As a result, income onequity method investment related to Alibaba increased ¥277,175 million.

5SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 30, 2019

F Derivative Loss
Derivative loss of ¥129,273 million was recorded due to a decrease in the fair value of investments in WeWork(warrants) held by a wholly owned subsidiary of the Company. See “Loss of Investments in WeWork and Its Affiliates”
below for details.

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

H Loss from Financial Instruments at FVTPL
Loss of ¥374,675 million was recorded due to a decrease in the fair value of investments in WeWork (preferred stockand common stock) held by a wholly owned subsidiary of the Company. See “Loss of Investments in WeWork and
Its Affiliates” below for details.

Mainly as a result of B through H, income before income tax decreased ¥285,192 million (20.3%) year on year,to ¥1,116,897 million.

I

Income Taxes

Deferred tax assets of ¥361,752 million was reversed following the settlement of the variable prepaid forward contract for Alibaba shares by WRH LLC in June 2019. These deferred tax assets were the total of i) deferred tax assets
for the temporary difference between the carrying amount on the accounting base and the tax base of such Alibaba
shares and ii) deferred tax assets recorded at the previous fiscal year-end for derivative liabilities related to the collartransaction embedded in the prepaid forward contract for Alibaba shares.

Mainly as a result of B through I, net income attributable to owners of the parent decreased ¥418,551 million(49.8%) year on year, to ¥421,552 million.

For a breakdown of the finance costs and basic information used to calculate income on equity method investments related to
Alibaba, see the Data Sheet in “Materials” under “Earnings Results Briefing” on the Company’s website athttps://group.softbank/en/corp/irinfo/presentations/.

6

SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 30, 2019

Loss of Investments in WeWork and Its Affiliates
A wholly owned subsidiary of the Company has invested in WeWork, which operates co-working space service “WeWork,” and SoftBank Vision Fund has invested in WeWork and its three affiliated companies, which are the arms for
China, Japan, and other Asian countries, respectively. As of September 30, 2019, the total investment amount by theCompany’s wholly owned subsidiary and SoftBank Vision Fund was $10.3 billion, including an unexecuted commitment of $1.5 billion held by the wholly owned subsidiary. These investments consist of common stock, several seriesof preferred stock, and warrants that will be converted into preferred stock.
WeWork submitted a Form S-1 (securities registration statement) to the U.S. Securities and Exchange Commission
on August 14, 2019 (ET), aiming for a public offering. On September 30, 2019, however, it decided to postpone theoffering to concentrate on its core business and withdrew the filing. In accordance with this decision, WeWork’s business plan was revised significantly, and on October 22, 2019 (ET) the Company and WeWork reached an agreement
under which the Company commits to provide significant funding to WeWork (for an overview, see “Significant Funding Commitment from the Company to WeWork” below).
As a result of these changes, the fair value of WeWork’s entire equity decreased to $7.8 billion as of the second
quarter-end, and consequently the changes in the fair value of investments held by the Company’s wholly owned subsidiary and SoftBank Vision Fund were recorded as a loss in the second quarter. The income approach (discounted cash
flow method) is used to measure the fair value of the entire shares of WeWork, and the scenario approach (a blend ofcommon stock equivalent and the option pricing model) is used to allocate the fair value for each investment type.
Separately from the above, as of September 30, 2019, SoftBank Corp. has cumulatively invested ¥22.4 billion in
WeWork Japan GK, which plays a role in expanding WeWork’s business in Japan. This investment is classified as aninvestment accounted for using the equity method in the Company’s condensed interim consolidated statement of financial position.
Investments from the Company’s wholly owned subsidiary (as of September 30, 2019)(Billions of U.S. dollars)
Account in the condensed
interim consolidated statement of income

Investee

Investment
type

Cumulative
investment
amountCumulative
gain (loss)

Fair value as of
September 30,
2019

Loss recordedin the period

The WeCompany

Warrants*1

1.5(Unexecuted)
4.5

(1.2)

0.3

(1.2)

Derivative gain (loss)

(3.5)

1.0

(3.5)

Gain (loss) from financial
instruments at FVTPL

Preferredstock andcommon stock

Note:
1. As of September 30, 2019, the Company’s wholly owned subsidiary owned warrants (an unexecuted commitment of $1.5 billion)
that would have been automatically converted into preferred stock in April 2020. Changes in the fair value of this investment wererecorded as a derivative gain or loss. On October 30, 2019, the Company’s said wholly owned subsidiary paid $1.5 billion for the
warrants, which were converted into preferred stock at the price of $11.60 per share.

7

SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 30, 2019

Investments from SoftBank Vision Fund (as of September 30, 2019)
Investee

Investment
type

The WeCompany

Preferredstock andcommon stock
Preferredstock

Three affiliates of
The WeCompany(Total)Cumulative
investment
amount3.0

Cumulative
gain (loss)

Loss recordedin the period(2.0)

Fair value as of
September 30,
2019
1.0

1.3

(0.2)

1.1

(0.4)*2(3.1)*2(Billions of U.S. dollars)
Account in the condensed
interim consolidated statement of income
Operating income from
SoftBank Vision Fund andDelta Fund

Note:
2. Before deducting third-party interests

Significant Funding Commitment from the Company to WeWork
On October 22, 2019 (ET) the Company and WeWork reached an agreement under which the Company commits toprovide significant funding to WeWork. The agreement includes the following:(1) Existing Payment Obligation: Execution of the Company’s April 2020 $1.5 billion payment obligation in warrants(funding commitment) at $11.60 per share (executed on October 30, 2019);(2) Tender Offer: Launch of a tender offer worth up to $3 billion to all shareholders other than the Company at a priceof $19.19 per share, expected to commence by December 31, 2019, with closing subject to regulatory approvals
and other customary closing conditions;(3) New Debt: Consisting of $1.1 billion in senior secured notes, $2.2 billion in unsecured notes, and a $1.75 billion
letter of credit facility. This funding is expected to occur after the completion of the tender offer; and(4) Joint Venture Share Swap: All of SoftBank Vision Fund’s interests in regional joint ventures outside of the Japan
joint venture will be exchanged for shares in WeWork at $11.60 per share.
After closing, and following the tender offer, the Company’s fully diluted economic ownership of WeWork will be
up to 80% (up to 60% by the Company’s wholly owned subsidiary and 20% by SoftBank Vision Fund). Since theCompany will not hold a majority of voting rights at any general shareholders meeting or board of directors meetingand cannot control WeWork due to its provision of the articles of incorporation and shareholders agreement, WeWork
will not be a subsidiary of the Company. WeWork will be an associate of the Company.

8

SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 30, 2019b. Results by Segment
The Company’s reportable segments are the components of its business activities for which decisions on resource allocation and assessment of performance are made. In the first quarter, the Company revised its segment classifications after
SoftBank Corp. made Yahoo Japan Corporation a subsidiary. There are now five reportable segments: SoftBank Vision
Fund and Delta Fund, SoftBank, Sprint, Arm, and Brightstar. The following is a summary of the reportable segments.
The main businesses and core companies of each reportable segment are as follows:
Segments
Main businesses

Core companies

Reportable segments
SoftBank Vision Fundand Delta Fund

· Investment activities by SoftBank Vision Fund
· Investment activities by Delta Fund

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

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

SoftBank Corp.
Yahoo Japan Corporation(currently Z Holdings Corporation *1)

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

Sprint Corporation

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

Arm Limited

Brightstar· Distribution of mobile devices overseas

Brightstar Corp.

· Alternative investment management business

Fortress Investment Group LLC· Fukuoka SoftBank HAWKS-related businesses· Smartphone payment businessFukuoka SoftBank HAWKS Corp.
PayPay Corporation

Other

Note: Income of reportable segments is calculated as follows.
SoftBank Vision Fund and Delta Fund segment:
Segment income = gain and loss on investments at SoftBank Vision Fund and Delta Fund − operating expenses
Segments excluding the SoftBank Vision Fund and Delta Fund segment:
Segment income = net sales − operating expenses (cost of sales + selling, general and administrative expenses) ± other operating
income and loss, for each segment
Note:
1. Yahoo Japan Corporation transitioned to a holding company structure on October 1, 2019 and changed its trade name to “Z Holdings Corporation.”
For historical principal operational data of each segment, their calculation methods, and definitions of terms, see the Data Sheetin “Materials” under “Earnings Results Briefing” on the Company’s website athttps://group.softbank/en/corp/irinfo/presentations/.

9SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 30, 2019(a) SoftBank Vision Fund and Delta Fund Segment
1. Segment loss of ¥572.6 billion
 Unrealized loss on valuation of investments (net) of ¥537.9 billion from investments held at the second
quarter-end: fair values of Uber, WeWork and its three affiliates,1 and other investments decreased.
 Realized gain on sales of investments of ¥34.8 billion: sold a minority portion of Guardant Health shares
2. Progress of investments at SoftBank Vision Fund
 The investment period was ended on September 12, 2019, after the accumulated investment amount2
exceeded 85% of total committed capital. The remaining capital is reserved for follow-on investments, etc.
 Held 88 investments as of the second quarter-end at cost totaling $70.7 billion, with fair value amounting to$77.6 billion (excluding exited investments).
 10x Genomics and Vir Biotechnology became publicly listed issuers in September and October 2019,respectively. CloudMinds has filed for an initial public offering.
3. Preparations for the full-scale launch of “SoftBank Vision Fund 2” are underway(Millions of yen)Six months ended September 30
2018
2019

ChangeChange %Gain and loss on investments at SoftBank Vision
Fund and Delta Fund
Operating expenses

649,357(16,923)(529,328)(43,311)(1,178,685)(26,388)

155.9%

Segment income

632,434(572,639)(1,205,073)-

OVERVIEWSoftBank Vision Fund began its operation in 2017. The fund aims to maximize returns from a medium- to long-term
perspective, through making large-scale investments in high growth potential companies that are leveraging AI, particularly in private companies with estimated corporate values of more than $1 billion, colloquially known as “unicorns.”
SoftBank Vision Fund is managed by SBIA, a wholly owned subsidiary of the Company established in the U.K.,
which is registered at the Financial Conduct Authority. The segment results include the results of the investment andoperational activities of SoftBank Vision Fund and Delta Fund, which is also managed by SBIA.
For details on the terms and conditions of distribution to limited partners in SoftBank Vision Fund and Delta Fund,and the terms and conditions of management fees and performance fees to SBIA, see “(2) Third-party interests in SoftBank Vision Fund and Delta Fund” and “(3) Management fees and performance fees to SBIA” under “3. SoftBank
Vision Fund and Delta Fund business” in (6) Notes to Condensed Interim Consolidated Financial Statements” in “3.
Condensed Interim Consolidated Financial Statements and Primary Notes.”

10SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 30, 2019

Outline of Funds in the Segment
As of September 30, 2019
Major limited partnership
Total committed capital(Billions of U.S. dollars)

SoftBank Vision Fund

Delta Fund (Inactive)

SoftBank Vision Fund L.P.

SB Delta Fund (Jersey) L.P.

98.6

*1

4.4 *1

General partner

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

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

Investment period

Ended on September 12, 2019 *3

Ended on September 12, 2019 *3

Minimum fund life

Until November 20, 2029 (in principle)

Until September 27, 2029 (in principle)

Notes:
1. A portion of the capital committed by third-party investors in both SoftBank Vision Fund and Delta Fund has been committed inconsideration of the total capital committed for both such funds; hence, the total committed capital and remaining committed
capital for each separate fund will change according to the status of contribution made by third-party investors in each such fund.
During the second quarter, the sale of the investment in Xiaoju Kuaizhi Inc. (“DiDi”) from Delta Fund to SoftBank Vision Fundwas settled, and the proceeds from this sale were distributed to Delta Fund’s limited partners, resulting in a return of limited
partners’ contributions. Consequently, the total committed capital of $1.6 billion from third-party investors in Delta Fund has been
reversed to SoftBank Vision Fund.
2. The Company’s committed capital to SoftBank Vision Fund includes approximately $8.2 billion of an obligation satisfied by using
Arm Limited shares (all said shares have been contributed by the previous fiscal year-end) and $5.0 billion earmarked for use in
an incentive scheme related to SoftBank Vision Fund.
3. SoftBank Vision Fund’s investment period is stipulated to either until November 20, 2022, or until the decision to end is made by
SBIA, as a general partner, after the accumulated investment account (amounts drawn down and invested and/or reserved to makeinvestments) exceeds 85% of the total committed capital, whichever is earlier. On September 12, 2019, SBIA determined to end
SoftBank Vision Fund’s investment period after the accumulated investment amount exceeded 85% of the total committed capital.
The remaining 15% of the total committed capital is reserved for follow-on investments in existing portfolio companies (including
investments in joint ventures with them), fixed distributions, and finance related expenses. The investment period of Delta Fundalso ended on September 12, 2019, following the ending of the investment period of SoftBank Vision Fund. Delta Fund is currently
inactive.

Capital Deployment
As of September 30, 2019
(Billions of U.S. dollars)

Total
Committed capital (A)SoftBank Vision Fund
Delta FundContributions from limited partners 4
SoftBank Vision Fund
Delta Fund

Third-party
investors

98.6
4.4

33.1 *1
4.4

65.5
*2
-

71.6
3.8

25.7
3.8 5

45.9
*2
-

(5.5)
(3.5)

(0.9)
(3.5)

(4.6)
*2
-

27.0
0.6

7.4
0.6

19.6
*2
-

(B)

Non-recallable contribution included in (B)SoftBank Vision Fund 6
Delta Fund 7
Remaining committed capital
SoftBank Vision Fund
Delta Fund

The Company(C) = (A) - (B)11SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 30, 2019

Notes:
1. The Company’s committed capital to SoftBank Vision Fund includes approximately $8.2 billion of an obligation satisfied by using
Arm Limited shares (all said shares have been contributed by the previous fiscal year-end) and $5.0 billion earmarked for use in
an incentive scheme related to SoftBank Vision Fund.
2. During the second quarter, the sale of the investment in DiDi from Delta Fund to SoftBank Vision Fund was settled, and theproceeds from this sale were distributed to Delta Fund’s limited partners, resulting in a return of limited partners’ contributions.
Consequently, the total committed capital of $1.6 billion from third-party investors in Delta Fund has been reversed to SoftBank
Vision Fund.

FINANCIAL RESULTS(Millions of yen)Six months ended September 30
2018
2019
Gain and loss on investments at SoftBank Vision Fundand Delta Fund
649,357(529,328)
Realized gain and loss on sales of investments
146,682
34,805
Unrealized gain and loss on valuation of investments
504,359(573,720)
Change in valuation for the fiscal year
504,359(537,932)
Reclassified to realized gain and loss recorded in
the past fiscal year*1(35,788)
Interest and dividend income from investments
2,607
8,337
Effect of foreign exchange translation(4,291)
1,250
Operating expenses(16,923)(43,311)

ChangeChange %(1,178,685)(76.3%)-(111,877)(1,078,079)(1,042,291)(35,788)
5,730
5,541
(26,388)219.8%
155.9%

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

632,434(11,711)(22)(80,953)(572,639)(8,688)37-(1,205,073)
3,023
59
80,953(25.8%)-(199,757)(535)

180,775
1,016

380,532
1,551-

Income before income tax

339,456(399,499)(738,955)-

Note:
1. It represents the unrealized gains and losses on valuation of Guardant Health Inc. (“Guardant Health”) shares recorded in the pastfiscal year, which are reclassified to realized gain on sales of investments due to the disposal of a minority portion of shares in thefiscal year.

Segment income
Segment loss was ¥572,639 million, compared with income of ¥632,434 million in the same period of the previous
fiscal year. This was mainly attributable to unrealized loss on valuation of investments of ¥537,932 million from investments held at the second quarter-end. Of this, while unrealized gain on valuation of investments totaling ¥589,647
million was recorded due to an increase in the fair values of 25 investments including OYO and its affiliate, unrealized
loss on valuation of investments totaling ¥1,127,579 million was recorded due to a decrease in the fair values of 25
investments including Uber and WeWork and its three affiliates.1 See “Loss of Investments in WeWork and Its Affiliates”
under “a. Consolidated Results of Operations” for details of loss of investments in WeWork and its affiliates. In the
period, fair values of 38 investments did not change.
Realized gain on sales of investments of ¥34,805 million was recorded as a result of the sale of a minority portion ofGuardant Health shares in September 2019.

12

SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 30, 2019

For investments in publicly listed companies, quoted prices are used to measure fair value. For investments in privately held companies, recent third-party transactions, market approach, cost approach, and/or income approach areused in the valuation.
For details on fair value measurement, see “SoftBank Vision Fund Business Model and Accounting Treatment” on the Company’s website at https://cdn.group.softbank/en/corp/set/data/irinfo/presentations/analyst/pdf/2018/investor_20181107_02.pdf.

Portfolio
As of September 30, 2019; excludes exited investments(Billions of U.S. dollars)
SectorConsumerEnterprise
FintechFrontier Tech
Health Tech
Real Estate & Construction
Transportation & Logistics

Number ofinvestments
16
8
11
10
9
11
23

Acquisition cost
10.7
2.2
4.1
10.8
2.7
8.8
31.4

Fair value
15.8
3.1
4.5
11.6
4.0
7.5
31.1

Change
5.1
0.9
0.4
0.8
1.3
(1.3)
(0.3)

88

70.7

77.6

6.9

Total

New investments in the period
In the period, SoftBank Vision Fund made investments totaling $10.7 billion, including follow-on investments.
Of these, the investments in ANI Technologies Private Limited (Ola) and an affiliate of WeWork were acquired fromsale by the Company for $950 million in total. These two investments were initially acquired by the Company with totalacquisition cost of $696 million.
For a complete list of SoftBank Vision Fund’s portfolio and sector changes for each portfolio company, if any, see the Data
Sheet in “Materials” under “Earnings Results Briefing” on the Company’s website athttps://group.softbank/en/corp/irinfo/presentations/.

Investments Acquired from Sale by the Company
In addition to direct purchase, some investments of SoftBank Vision Fund are acquired from sale by the Company,
but only if they are in accordance with the fund’s investment eligibility criteria. There are two types of investmentsthat could be sold to SoftBank Vision Fund: (A) Investments that were acquired by the Company on the premise ofoffering the investment to SoftBank Vision Fund and that were in accordance with the investment eligibility criteriaof the fund at the time of acquisition (“Bridge Investments”) and (B) other investments. Examples of (B) include
investments that were made without the premise of offering the investment to SoftBank Vision Fund at the time ofacquisition, or, investments that were made with the premise of offering the investment to the fund but were not inaccordance with the investment eligibility criteria of the fund at the time of acquisition and therefore require consent
from the limited partners for selling to the fund.
The Company recognizes that the transfer of such investments is agreed, at the timing when consent from theinvestment committee and other bodies (and certain limited partners if applicable) at SoftBank Vision Fund andapprovals from relevant regulatory authorities are obtained. Sales of these investments are made at the fair value atthe time the Company made its decision at its applicable authority to offer the transfer, and this value will be the13SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 30, 2019acquisition cost for SoftBank Vision Fund. These investments are presented as investments of SoftBank Vision Fundin the Company’s consolidated financial statements, after the Company recognizes that the transfer is agreed.
As for investments transferred during the fiscal year, the differences between the carrying amounts at the beginningof the fiscal year (or the acquisition cost during the fiscal year) and the sale values were recorded in non-operating
income of the Company’s consolidated statement of income, while the changes in fair values from the sale values(the acquisition value for SoftBank Vision Fund) were recorded in segment income of the SoftBank Vision Fund andDelta Fund segment. The sale transactions for the transfer between the Company and SoftBank Vision Fund havebeen eliminated as inter-group transactions in the Company’s consolidated financial statements.

Portfolio of Delta Fund
There were no investments held by Delta Fund as of the second quarter-end. Delta Fund is currently inactive.

(b) SoftBank Segment (including Previous Yahoo Japan Segment)
1. Achieved higher net sales and segment income, driven by expansion of telecom service customer base.
2. SoftBank Corp. made Yahoo Japan Corporation a subsidiary in June 2019.
(Millions of yen)

Net sales
Segment income

Six months ended September 30
2018
2019

ChangeChange %2,228,320

2,373,300

144,980

6.5%

524,112560,91336,8017.0%

Note: To reflect Yahoo Japan Corporation becoming a subsidiary of SoftBank Corp., the results of Yahoo Japan Corporation arepresented retroactively as part of the SoftBank segment from April 1, 2018.

FINANCIAL RESULTS
Both net sales and segment income increased year on year, driven by steady growth in the telecommunications business,
especially services for retail consumers. Net sales growth was attributable to an increase in telecom service revenue
from services for retail consumers, led by steady expansion in the customer base. As an example of this expansion, thecumulative number of smartphone subscribers with the three brands – SoftBank, Y!mobile, and LINE MOBILE – increased 950,000 from the previous fiscal year-end to 23.03 million, and the cumulative number of subscribers to SoftBank Hikari, a fiber-optic service, increased 250,000 from the previous fiscal year-end to 6.16 million. Segment income
also increased as a result of increased net sales.
Yahoo Japan Corporation became a subsidiary of SoftBank Corp. as of June 27, 2019. Accordingly, the results ofYahoo Japan Corporation are presented retroactively as part of the SoftBank segment from April 1, 2018. Operating
income of Yahoo Japan Corporation in this segment decreased by 2.6% year on year. This was mainly due to an increasein depreciation and amortization, sales promotion expenses, and staff cost.

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

14

SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 30, 2019(c) Sprint Segment
1. Merger with T-Mobile: received approval with conditions from the DOJ in July 2019, followed by
the FCC in November 2019.
2. Net sales and segment income decreased, due to reimbursement of overly received subsidies and impact of
adoption of IFRS 15 in the previous fiscal year.
(Millions of yen)

Net sales
Segment income

Six months ended September 30
2018
2019

Change1,824,024

1,735,099(88,925)(4.9%)

193,328

102,469(90,859)(47.0%)

U.S. dollar-based results (IFRSs)

Change %(Millions of U.S. dollars)

Net sales

16,55815,937(621)(3.8%)

Segment income

1,756

939

(817)

(46.5%)FINANCIAL RESULTS
The decrease in net sales was mainly due to (1) a revision to the amount of funds that Sprint had overly received in thepast under the Lifeline program, a U.S. government subsidy program that is applied when telecom operators provide
communications services for certain low-income consumers, (2) the impact of IFRS 15 being adopted from the firstquarter of the previous fiscal year, and (3) the impact of a stronger yen against the U.S. dollar on the exchange rate used
for translation in preparation for the Company’s consolidated statement of income.
With regard to (1), Sprint will reimburse subsidies for subscribers who were not actually eligible for the Lifeline
program to U.S. government. As a result, the current estimated amount of the reimbursements was deducted from net
sales. With regard to (2), under the previous standards, the difference between mobile equipment revenue and subsidy
was recorded as equipment revenue when Sprint sold a mobile device. However, due to the adoption of IFRS 15, thefull amount of equipment revenue is recorded when a mobile device is sold, while the subsidy is recorded as a reduction
to service revenue over the expected time of use. Since the number of new prepaid customer acquisition continued to
grow after the first quarter of the previous fiscal year, the total of amount of reduction from service revenue increased
year on year.
Segment income decreased mainly due to (1) and (2) above, where profit decreased by the same amount as net sales.
A deterioration of ¥39,954 million year on year in other operating income and loss also negatively impacted the segment
income. This deterioration was mainly due to recording other operating loss of ¥22,725 million as a consequence of asale and leaseback transaction that Sprint executed for its head office, including buildings and land. This loss was a
result from the difference between their carrying amounts and the fair values after deducting transaction costs.

Progress on the Merger of Sprint and T-Mobile
On April 29, 2018, Sprint and T-Mobile US Inc. (“T-Mobile”) entered into a definitive agreement to merge in an allstock transaction (the “Transaction”). On July 26, 2019 (ET) the U.S. Department of Justice (DOJ) announced its
approval, subject to the terms of a proposed consent decree filed by the DOJ. Thereafter, on November 5, 2019 (ET),the FCC announced its approval with conditions of the Transaction. With this, the companies have obtained all of thenecessary federal regulatory approvals to close the Transaction. The Transaction has also received approvals from15

SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 30, 201918 of the 19 state utility commissions, with only approval from the California public utility commission (the “California PUC”) still outstanding. Sprint and T-Mobile are also awaiting resolution of litigation filed by the attorneys
general of certain states and the District of Columbia seeking an injunction prohibiting the closing of the Transaction(the “AG Litigation”).
Impact on the Company’s Consolidated Financial Results
1. Classification as discontinued operations
The condition for classifying the Sprint business as discontinued operations is the determination that the closing of
the Transaction is “highly probable.” Previously, it was deemed that the condition would be met by obtaining
approval from federal regulators. However, although federal approvals had been obtained, the situation has changed,
as the start of the trial for the AG Litigation was rescheduled until December 9, 2019, and further, it became more
likely that the decision by the California PUC, which was expected to be made regardless of the AG Litigation, will
be made after resolution is reached on the AG Litigation. Accordingly, the Company is continuing to carefully
monitor events to determine when the closing of the Transaction becomes highly probable.
The Sprint business will be classified as discontinued operations from the date on which it is confirmed that itmeets the conditions for such classification, and in the Company’s consolidated statement of income, Sprint’s net
income and loss will be presented as “net income or loss from discontinued operations,” separately from continuing
operations. Sprint’s net income and loss for the previous fiscal year will also be retrospectively revised and presented
as “net income or loss from discontinued operations.” In the Company’s consolidated statement of financial position,assets and liabilities of Sprint will be presented as assets and liabilities held for sale.

2. Impacts of the closing of the Transaction
On the date when the Transaction is completed, the amount of the difference between the fair value of the shares of
the combined company and the consolidated carrying amount of Sprint at the time of the Transaction is planned tobe recorded as revaluation gain or loss related to change in scope of consolidation under net income or loss.

3. After the closing of the Transaction
After the date when the Transaction is completed, the combined company is expected to become an equity method
associate of the Company with an approximately 27.4% shareholding (fully diluted base), and Sprint will no longer
be a subsidiary of the Company.

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

16SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 30, 2019(d) Arm Segment
1. Net sales decreased 3.4% yoy; segment income decreased significantly due to a one-time gain in the same
period of the previous fiscal year Ongoing weakness in the semiconductor industry pushed down both royalty and licensing revenues.
 Segment income decreased yoy, due to a one-time gain of ¥176.3 billion from setting up a joint venture forbusiness in China in the same period of the previous fiscal year.
2. Progress in licensing new technologies
 Strong licensing activity of new technologies with a majority of the revenue expected to be recognized infuture quarters.
(Millions of yen)Six months ended September 30
2019
2018

ChangeChange %Net sales

91,69388,545(3,148)(3.4%)

Segment income

141,242(26,802)(168,044)-

Note: Segment income includes amortization expenses of ¥24,991 million for the period and ¥30,208 million for the same periodof the previous fiscal year. These expenses are related to intangible assets recognized in the purchase price allocation at thetime of the acquisition of Arm.

OVERVIEW
Arm’s operations are primarily the licensing of semiconductor intellectual property (IP), including the designs of energyefficient microprocessors and associated technologies. Since becoming part of the Company, Arm has accelerated investment in R&D by hiring more engineers. With the expansion of its engineering capability, Arm can develop newtechnologies that will help it maintain or gain share in its existing markets and expand into new markets.
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)

Technology licensing
Technology royalties
Software and services
Total net sales

Q1
85
261
35
381

Q2
124
285
47
456

Six months ended September 30
2018
2019
Total
Q1
Q2
Total
209
125
87
212
546
240
254
494
82
53
55
108
837
418
396
814

Change Change %
3
1.4%
(52)
(9.5%)
26
31.7%
(23)
(2.7%)Net sales for the period decreased 2.7% year on year. This was due to a decrease in royalty revenue, reflecting thedeceleration in semiconductor demand including a weakening in global smartphone demand, combined with a generalslowdown in global chip sales.
License revenue for the period only increased 1.4% year on year, despite the temporary weakness in the same periodof the previous fiscal year due to the establishment of joint venture for business in China. This was because somecustomers delayed signing new licenses for existing technologies, reflecting the ongoing weakness in the semiconductor
industry and Arm signed several licenses for new technologies that are still under development in the period, which will
deliver revenue in future quarters.

17SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 30, 2019

Arm is currently undergoing a transition in its product cycle and is now signing multiple licenses for new technologies
that have not been announced. Revenue for these licenses is not recorded as revenue in the period. However, the revenue
is expected to be recognized as license revenue when the technology is delivered to the customer in future quarters. Also,
as most of these new technologies are more advanced than existing technologies, there is an opportunity for higher
royalty revenue per chip boosting Arm’s revenues for years to come.
Software and services revenue for the period increased 31.7% year on year, due to the acquisition of Treasure Data,
Inc. in August 2018.

Segment income
Segment income decreased year on year. This was due to recognizing gain relating to the loss of control over subsidiariesof ¥176,261 million in the same period of the previous fiscal year, as a result of Arm’s Chinese subsidiary becoming an
associate accounted for using the equity method.
Arm will continue to strengthen its R&D capacity by expanding its staff, and its head count in the second quarter-end
increased net 378 people (6.3%) from the previous fiscal year-end. In the meantime, to maximize ROI, it will also
continuously evaluate the mix of R&D projects in which it is investing, as well as the locations of the engineering teams.

Industry trend and its impact
Revenue in the semiconductor industry for January to August 2019 declined 14% year on year. 8 This weakness in thesemiconductor industry and the risk from trade disputes and sanctions against specific companies could continue forsome time. For the fiscal year, these factors could impact both Arm’s license and software and services revenues, as
semiconductor companies choose to delay licensing new processors, and royalty revenues, as OEMs sell fewer products
or manage chip inventory levels more carefully. Once normal market conditions return, Arm expects that its businesswill continue to grow again.

OPERATIONS
Licensing
Licenses signedin the second quarter

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

Classic (Arm7, Arm9, Arm11)-

451

Cortex-A

14

373

Cortex-R-

108

Cortex-M

18

573

Mali

3

187

Number of processor licenses signed

35

1,692

Breakdown by processor family

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

Arm signed 35 processor licenses in the second quarter, including six licenses for new technologies that Arm has not
yet announced. The customers who signed licenses with Arm in the second quarter intend to use Arm technologies in avery broad range of end markets, including automotive applications, networking infrastructure, servers, and smartphones.

18

SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 30, 2019

Royalty Units 9
2018Royalty units as reported byArm’s licensees
Growth rate (yoy)2019

Apr 1 toJun 30Jul 1 toSep 30

Oct 1 toDec 31

Jan 1 toMar 31

Apr 1 toJun 30

5.6 billion

6.2 billion

5.6 billion

4.8 billion

5.6 billion

9.8%

8.8%

(3.4%)(12.7%)-

Arm’s licensees reported shipments of 5.6 billion Arm-based chips for the three-month period ended June 30, 2019.
Arm’s unit shipments were flat year on year despite the 10% decline8 in the whole semiconductor industry during thesame period.

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

Arm’s primary investment areas and main developments:
Mobile Computing
Opportunity: Arm already has over 95% share of the main chips in mobile devices and, over time, has beensuccessfully increasing royalties per chip.
The first quarter: Arm announced a family of processors which will help provide AI and 5G capabilities to thenext generation of smartphones due in 2020.
The second quarter
Arm announced Total Compute, a new platform approach to develop IP for mobile devices
and consumer electronics, which will deliver higher performance and greater security.
Infrastructure
Opportunity: Arm has a growing share in networking infrastructure and a nascent share in data center
servers.
The first quarter: Marvell Technology Group Ltd. and Arm announced a strategic partnership to accelerate thedevelopment of technology needed for cloud companies to deploy Arm-based servers.
Automotive
Opportunity: As vehicles become smarter, they require more computational capability. Arm is well
positioned to gain share by providing energy efficiency and Arm processor technology has
already been licensed by most companies that develop automotive chips.
The second quarter : Established Autonomous Vehicle Computing Consortium (AVCC) with partners from theautomotive industry to create technology standards that will help accelerate the arrival of selfdriving cars.
IoT
Opportunity: 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.
The first quarter: Samsung Electronics Co., Ltd. and Arm demonstrated a new manufacturing process for IoT
chips.
The second quarter
Arm announced a new feature Arm Custom Instructions. This allows chipmakers to optimize
an Arm CPU to increase the performance for specific IoT and other applications.
For more information about Arm, its business, and its technology, please refer to its website at:https://www.arm.com/company/investors

19

SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 30, 2019(e) Brightstar Segment(Millions of yen)Six months ended September 30
2018
2019

ChangeChange %Net sales

525,001

459,001(66,000)(12.6%)

Segment income(8,873)(2,895)5,978-(f) Other(Millions of yen)Six months ended September 30
2018
2019

ChangeChange %Net sales

94,811

91,913(2,898)(3.1%)

Segment income(25,116)(46,348)(21,232)-

Operating loss of ¥34,549 million was recorded at PayPay Corporation, which is engaged in smartphone payment services in Japan. This was mainly due to large-scale marketing promotions aimed at gaining users and driving service
usage, and continued proactive measures to increase the number of stores where its services can be used.

Results of PayPay Corporation included in the Other segment(Millions of yen)Six months ended September 30
2018
2019
Net sales
Operating income

ChangeChange %

-

1,596

1,596

-

(2,673)(34,549)(31,876)-20

SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 30, 2019(2) Overview of Financial Position
1. Status of investments
 Balance of investments from SoftBank Vision Fund of ¥7.5 trillion: increased ¥369.3 billion from theprevious fiscal year-end
Despite new investments totaling $10.7 billion, the growth was suppressed due to a decrease in the fairvalue of Uber, WeWork and its three affiliates,1 and other investments.
 Balance of investments (investment securities) outside of SoftBank Vision Fund of ¥1.3 trillion:
increased ¥399.2 billion from the previous fiscal year-end
New investments of ¥648.4 billion including additional investment of ¥220.0 billion in WeWork made in thefirst quarter were offset by a decrease of ¥374.7 billion in the fair value of investments in WeWork in thesecond quarter.
2. SoftBank Group Corp. financing activities
Enhanced cash on hand by procuring funds in advance to prepare for redemption of corporate bonds.
(Millions of yen)March 31, 2019

September 30, 2019

ChangeChange %Total assets

36,096,476

36,848,701

752,225

2.1%

Total liabilities

27,087,272

28,225,075

1,137,803

4.2%

Total equity

9,009,204

8,623,626(385,578)(4.3%)

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

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

September 30, 2019

ChangeCash and cash equivalents

3,858,518

4,259,177

400,659

Trade and other receivables

2,339,977

2,282,416(57,561)

Other financial assets

203,476

180,468(23,008)

Inventories

365,260

301,839(63,421)

Other current assets

766,556

423,878(342,678)A

Assets classified as held for sale

224,201-(224,201)

B

Total current assets

7,757,988

7,447,778(310,210)

Property, plant and equipment

4,070,704

2,960,205(1,110,499)

C-

2,235,685

2,235,685

D

Goodwill

4,321,467

4,083,280(238,187)

E

Intangible assets

6,892,195

6,628,147(264,048)E

384,076

403,468

19,392

Investments accounted for using the equity method

2,641,045

2,847,700

206,655

F

Investments from SoftBank Vision Fund andDelta Fund accounted for using FVTPL

7,115,629

7,484,921

369,292

G

Investment securities

924,614

1,323,820

399,206

H

Other financial assets

1,185,856

1,035,190(150,666)

Deferred tax assets

586,943

193,813(393,130)

Other non-current assets

215,959

204,694(11,265)

Total non-current assets

28,338,488

29,400,923

1,062,435

Total assets

36,096,476

36,848,701

752,225

Right-of-use assets

Costs to obtain contracts

21

ISoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 30, 2019

Reasons for changes in primary components
Components
Current assets
A Other current assets

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

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

· Sprint made capital expenditures for the 5G network, while telecommunications equipment was regularly depreciated at SoftBank Corp.
· Due to the adoption of IFRS 16, leased assets of ¥1,157,008 million, previously classified as financing leases and recorded as property, plant and equipment, were reclassified as right-of-use assets at the beginning of the fiscal
year. This was mainly due to leased assets related to telecommunications
equipment for SoftBank Corp. being reclassified as right-of-use assets.

D Right-of-use assets· Due to the adoption of IFRS 16, right-of-use assets of ¥1,368,144 million
were newly recorded at the beginning of the fiscal year. This was mainly due
to newly recorded right-of-use assets for operating leases related to telecommunications equipment and property at Sprint and SoftBank Corp.
· Leased assets that had been included in property, plant and equipment werereclassified as right-of-use assets.

E Goodwill
Intangible assets

Sprint’s FCC licenses and Arm’s goodwill and technologies decreased due to astronger yen against the U.S. dollar and the British pound.

F Investments accounted for using
the equity method

The consolidated carrying amount of Alibaba increased due to recording income on equity method investments, which included a gain recorded in association with Alibaba’s receipt of Ant Financial shares in the second quarter.

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

In the period, investments of $10.7 billion were made, while the fair values ofinvestments including Uber and WeWork and its three affiliates1 decreased anda minority portion of Guardant Health shares were sold. For details, see “(a)SoftBank Vision Fund and Delta Fund Segment” under “b. Results by Segment” in “(1) Overview of Results of Operations.”

H Investment securities

Wholly owned subsidiaries of the Company made investment in preferredstock and common stock of WeWork totaling ¥220.0 billion, and made othernew investments. Conversely, a ¥374.7 billion decrease in the fair value of investments in WeWork was recognized at the second quarter-end. For details,
see “Loss of Investments in WeWork and Its Affiliates” under “a. Consolidated
Results of Operations” in “(1) Overview of Results of Operations.”

I Deferred tax assets

As a result of the settlement of a variable prepaid forward contract using
Alibaba shares, the corresponding deferred tax assets were reversed.

22

SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 30, 2019(b) Liabilities(Millions of yen)March 31, 2019

September 30, 2019

Change3,480,960

3,281,871(199,089)-

612,194

612,194

Deposits for banking business

745,943796,624

50,681

Third-party interests in SoftBank Vision Fund andDelta Fund*2

29,677

11,874(17,803)1,909,608

1,753,834(155,774)

Derivative financial liabilities

767,714

136,497(631,217)

Other financial liabilities

10,84910,401(448)

Income taxes payables

534,906

136,806(398,100)

Provisions

43,68527,606(16,079)

Other current liabilities

1,158,355

688,661(469,694)

Total current liabilities

8,681,697

7,456,368(1,225,329)

Interest-bearing debt*1

12,204,146

12,733,603

529,457-

1,460,936

1,460,936

4,107,288

4,561,206

453,918

Derivative financial liabilities

130,545

151,80221,257

Other financial liabilities

57,11586,97829,863

Defined benefit liabilities

99,351

121,865

22,514

Provisions

157,478

157,270(208)

1,391,072

1,335,720(55,352)

Other non-current liabilities

258,580

159,327(99,253)

Total non-current liabilities

18,405,575

20,768,707

2,363,132

Total liabilities

27,087,272

28,225,075

1,137,803

Interest-bearing debt*1*1

Lease liabilities

Trade and other payables*1

Lease liabilities

Third-party interests in SoftBank Vision Fund andDelta Fund*2

Deferred tax liabilities

A
B
C

Notes:
1. Due to the adoption of IFRS 16, lease liabilities of ¥1,449,326 million, for operating leases that were previously accounted for asleases, were newly recorded at the beginning of the fiscal year. In addition, lease obligations of ¥892,472 million related to financeleases, previously included in interest-bearing debt, were reclassified as lease liabilities.
2. For details of third-party interests in SoftBank Vision Fund and Delta Fund, see “(2) Third-party interests in SoftBank Vision Fundand Delta Fund” under “3. SoftBank Vision Fund and Delta Fund business” in “(6) Notes to Condensed Interim Consolidated
Financial Statements” in “3. Condensed Interim Consolidated Financial Statements and Primary Notes.”

Reasons for changes in primary components
Components
Current Liabilities
A Derivative financial liabilities

Main reasons for changes from the previous fiscal year-end· Derivative financial liabilities relating to the embedded collar transaction in
the variable prepaid forward contract using Alibaba shares decreased¥749,846 million, due to settlement of the contract.
· Derivative financial liabilities of ¥129,109 million were recognized at thesecond quarter-end in regard to investments in WeWork (warrants). For details, see “Loss of Investments in WeWork and Its Affiliates” under “a.
Consolidated Results of Operations” in “(1) Overview of Results of Operations.”

23

SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 30, 2019

B Income taxes payables

Income tax of ¥321,290 million, which arose from a gain on the sale of SoftBank Corp. shares at SBGJ in the previous fiscal year, was paid.

C Other current liabilities

Withholding income tax of ¥422,648 million on dividends from SBGJ to
SoftBank Group Corp. in the previous fiscal year was paid.

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

September 30, 2019

Change6,714,950

7,583,178

868,228

Borrowings

1,896,561

2,391,900

495,339

Corporate bonds

4,776,389

5,016,278

239,889

42,000175,000

133,000

SoftBank Corp.

3,186,618

3,965,178

778,560

Borrowings

2,392,843

2,932,967

540,124

786,174-(786,174)-

988,570

988,570

7,601

43,641

36,040130,099393,768

263,669-

10,00010,000

Corporate bonds

130,000

359,254229,254

Lease obligations

99

-

(99)

Lease liabilities-

24,51424,514

4,428,378

4,836,294

407,916

Borrowings

1,730,203

1,639,801(90,402)

Corporate bonds

2,674,649

2,380,833(293,816)

Lease obligations

14,991-(14,991)-

808,217808,217

8,535

7,443

(1,092)

36,571

624,350

587,779

36,571

624,350

587,779

1,188,490

685,836(502,654)

Financial liabilities relating to sale of sharesby variable prepaid forward contract

730,601-(730,601)

Other interest-bearing debt

457,889

434,007(23,882)-

251,829

251,829

15,685,106

18,088,604

2,403,498

SoftBank Group Corp.3

OthersLease obligations
Lease liabilities
OthersYahoo Japan Corporation
Borrowings

SprintLease liabilities
OthersSoftBank Vision Fund
Borrowings
OthersLease liabilities
Total

24

SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 30, 2019

SoftBank Group Corp.3
・Borrowings increased as the Company enhanced its cash on hand by making additional borrowings of $3.8 billion
using Alibaba shares through Skywalk Finance GK, a wholly owned subsidiary of the Company.
・SoftBank Group Corp. issued domestic straight corporate bonds totaling ¥1 trillion and redeemed corporate bonds of¥700 billion as part of refinancing corporate bonds maturing in 2019 and 2020 onward.
・The Company issued commercial paper in the amount of ¥133 billion (net). Interest-bearing debt from transaction is
included under “Others.”

SoftBank Corp.
・Borrowings were made to acquire Yahoo Japan Corporation shares and to replenish the reduced working capital dueto this acquisition.
・Impacts of adopting IFRS 16 at the beginning of the fiscal year
- Lease liabilities of ¥384,103 million were newly recorded for operating leases that were previously accounted for
as leases.
- Finance leases of ¥786,174 million, previously included in interest-bearing debt, were reclassified as lease liabilities.
・Liabilities related to lease transactions of software for telecommunications equipment were previously classified aslease obligations. Since the Company does not adopt IFRS 16 on leases of intangible assets, those liabilities wererecorded as financial liabilities in borrowings based on IFRS 9, and retrospective adjustments have been made for thebalance of the previous fiscal year-end. Borrowings of ¥250,622 million related to those transactions (¥277,157 million at the previous fiscal year-end) were included at the second quarter-end.

Yahoo Japan Corporation
・Domestic straight corporate bonds totaling ¥230 billion were issued.
Sprint・Corporate bonds of $2.0 billion were redeemed, and borrowings through the securitization of receivables were repaid.
・Impacts of adopting IFRS 16 at the beginning of the fiscal year
- Lease liabilities of ¥868,200 million were newly recorded in relation to operating leases that were previously accounted for as leases.
- Finance leases of ¥14,991 million, previously included in interest-bearing debt, were reclassified as lease liabilities.

SoftBank Vision Fund and Delta Fund
SoftBank Vision Fund made borrowings for the purpose of monetizing a portion of its investments (the “Portfolio Financing Facility”). The fund also made borrowings from a line of credit that was set up mainly to increase the capitalefficiency of its investments (the “Fund Level Facility”).

OthersFinancial liabilities relating to the sale of Alibaba shares by variable prepaid forward contract decreased due to its settlement.

25

SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 30, 2019(c) Equity(Millions of yen)March 31, 2019

September 30, 2019

ChangeCommon stock

238,772

238,772-

Capital surplus

1,467,762

1,529,114

61,352496,876

496,876-

Retained earnings

5,571,285

5,392,636(178,649)

B

Treasury stock(443,482)(92,962)

350,520C

Accumulated other comprehensive income

290,268(252,162)(542,430)

D

Total equity attributable to owners of the parent

7,621,481

7,312,274(309,207)

Non-controlling interests

1,387,723

1,311,352(76,371)

Total equity

9,009,204

8,623,626(385,578)

Other equity instruments

A

Reasons for changes in primary components
Components
A Capital surplus

Main reasons for changes from the previous fiscal year-end
Capital surplus increased as a result of a decrease in the Company’s economic
interests in Yahoo Japan Corporation.

B Retained earnings

While net income attributable to owners of the parent of ¥421,552 million wasrecorded, retained earnings decreased ¥558,136 million*1 with the retirement of
55,753,200 shares of treasury stock in June 2019 (5.07% of the total number ofissued shares before the retirement). In addition, the cumulative impact of adopting IFRS 16 of ¥13,997 million was recorded as an increase in retained earnings
on April 1, 2019.

C Treasury stock· The Company repurchased 36.71 million of its own shares for ¥384.1 billion in
the previous fiscal year and 19.04 million shares for ¥215.9 billion in the fiscal
year. This is in accordance with a resolution of the Board of Directors on February 6, 2019 to repurchase the Company’s own shares, with a maximum total
repurchase amount of ¥600 billion.
· The Company retired treasury stock in June 2019.

D Accumulated othercomprehensive income

Exchange differences on translating foreign operations, which arise from translating overseas subsidiaries and associates into yen, decreased ¥577,769 million
due to a stronger yen against the major currencies.

Note:
1. The number of shares retired is the same as the number of shares acquired from the share repurchase (the “Share Repurchase”) in
accordance with a resolution of the Board of Directors on February 6, 2019. However, since the retirement amount is calculated
based on the carrying amounts, including the treasury stock held by the Company prior to the Share Repurchase, the retirement
amount differs from the total repurchase amount of the Share Repurchase.

26

SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 30, 2019(3) Overview of Cash Flows
1. Investing activities of SoftBank Vision Fund Inflows: contributions from third-party investors of ¥1,356.6 billion (cash flows from financing activities),
proceeds from borrowings of ¥1,038.3 billion (cash flows from financing activities), and proceeds from sale ofinvestments of ¥40.6 billion (cash flows from investing activities)
 Outflows: payments for acquisition of investments of ¥1,063.7 billion (cash flows from investing activities),
repayment of borrowings of ¥448.8 billion, and distribution/repayment to third-party investors of ¥616.7
billion (cash flows from financing activities).
2. Financing activities of SoftBank Group Corp.
Enhanced cash on hand by procuring funds in advance to prepare for redemption of corporate bonds.
(Millions of yen)Six months ended September 30
2018
2019

ChangeCash flows from operating activities

782,775

373,659(409,116)

Cash flows from investing activities(1,118,068)(2,125,621)(1,007,553)

Cash flows from financing activities

62,9452,191,030

2,128,085

Note: Since lease liabilities were newly recognized for operating leases from the fiscal year due to the adoption of IFRS 16, of theleasing amount (previously recorded as cash flows from operating activities), payment for interest expenses was recorded in“interest paid (cash flows from operating activities)” and payment related to repayment of principal of liabilities was recorded
in “repayment of lease liabilities (cash flows from financing activities).”(a) Cash Flows from Operating Activities
Cash flows from operating activities decreased mainly due to payment of income tax of ¥321,290 million by SBGJ on
a gain on the sale of SoftBank Corp. shares recorded in the previous fiscal year.
(b) Cash Flows from Investing Activities
Primary components
Components
Outlays for purchase of property, plant andequipment and intangible assets¥(635,953) million

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

Payments for acquisition of investments¥(648,393) million

Wholly owned subsidiaries of the Company made investments inpreferred stock and common stock of WeWork totaling ¥220.0 billion, and made other new investments.

Payments for acquisitions of investment by
SoftBank Vision Fund and Delta Fund¥(1,063,737) million

SoftBank Vision Fund made investments.

Proceeds from sale of investments by SoftBank Vision Fund and Delta Fund
¥40,635 million

SoftBank Vision Fund sold a minority portion of Guardant Healthshares.

27

SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 30, 2019(c) Cash Flows from Financing Activities
Primary components
Components
Proceeds in short-term interestbearing debt, net¥553,674 million

Primary details· SoftBank Corp. made borrowings of ¥240 billion (net) through the securitization of receivables related to telecommunications to replenish the reduced
working capital due to the acquisition of shares in Yahoo Japan Corporation.
· SoftBank Group Corp. made borrowings of ¥133 billion (net) through issuance of commercial paper.

Proceeds from interest-bearing debt
¥5,196,627 million
Proceeds from borrowings¥3,966,627 million*1· SoftBank Group Corp. made short-term borrowings of ¥1,253,800 million.
Also, SoftBank Group Corp. made additional borrowings of $3.8 billion using Alibaba shares through its wholly owned subsidiary.3· SoftBank Vision Fund made borrowings totaling ¥1,038,344 million throughthe Fund Level Facility and the Portfolio Financing Facility.
· SoftBank Corp. borrowed ¥150,500 million to finance the acquisition of Yahoo Japan Corporation shares. It also borrowed ¥438,522 million through thesale of installment sales receivables and the sale and leaseback of telecommunications equipment.
· Sprint made borrowings totaling ¥364,757 million through the securitizationof receivables and term loans.

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

Repayment of interest-bearing debt¥(3,592,775) million
Repayment of borrowings¥(2,664,040) million*1· SoftBank Group Corp. repaid short-term borrowings of ¥1,116,400 million.
· SoftBank Vision Fund repaid ¥448,793 million, including a part of its borrowings made through the Fund Level Facility.
· Sprint and SoftBank Corp. repaid borrowings.

Redemption of corporatebonds¥(922,545) million· SoftBank Group Corp. redeemed domestic straight corporate bonds of ¥700
billion at maturity.
· Sprint redeemed corporate bonds of $1.7 billion at maturity and also redeemed corporate bonds of $0.3 billion before maturity.

Repayment of lease liabilities¥(359,112) million

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

Contributions to SoftBank Vision
Fund and Delta Fund from thirdparty investors¥1,356,554 million

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

Distribution/repayment from SoftBank Vision Fund and Delta Fundto third-party investors¥(616,690) million· SoftBank Vision Fund made distributions and repaid the principal for investments to third-party investors totaling ¥456,783 million, mainly by using theproceeds from the Portfolio Financing Facility.
· Delta Fund made distributions and repaid the principal for investments tothird-party investors totaling ¥159,907 million, mainly by using the proceedsfrom the sale of DiDi shares to SoftBank Vision Fund.

Purchase of treasury stock¥(215,941) million

SoftBank Group Corp. repurchased its own shares.

Note:
1. Proceeds from borrowings and repayment of borrowings include proceeds of ¥2,580,038 million and outlays of ¥1,694,013 million,
respectively, related to borrowings with a contracted term of one year or less.

28

SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 30, 2019

(Reference) Details of Primary Cash Flows from Investing Activities and Financing Activities of Core Companies
SoftBank Group Corp.
Cash flows from financing activities
Proceeds in short-term interestbearing debt, net

Procured funds through commercial paper.

¥133,000 million
Proceeds from borrowings3¥1,660,910 million· Made short-term borrowings of ¥1,253,800 million.
· Made additional borrowing of $3.8 billion using Alibaba shares through awholly owned subsidiary.

Repayment of borrowings¥(1,156,319) million

Repaid short-term borrowings.

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

Issued domestic straight corporate bonds for the purpose of refinancing.

Redemption of bonds¥(700,000) million

Redeemed domestic straight corporate bonds at maturity.

Purchase of treasury stock¥(215,941) million

Repurchased its own shares.

SoftBank Vision Fund and Delta Fund
Cash flows from investing activities
Payments for acquisition of investments¥(1,063,737) million
Proceeds from sales of investments¥40,635million

SoftBank Vision Fund made investments.

SoftBank Vision Fund sold a minority portion of Guardant Health shares.

Cash flows from financing activities
Proceeds from borrowings¥1,038,344 million

SoftBank Vision Fund made borrowings through the Fund Level Facility
and the Portfolio Financing Facility.

Repayment of borrowings¥(448,793) million

SoftBank Vision Fund repaid part of the borrowings made through theFund Level Facility.

Contributions from third-party
investors¥1,356,554 million

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

Distribution/repayment to third-party
investors¥(616,690) million· SoftBank Vision Fund made distributions and repaid the principal for investments to third-party investors totaling ¥456,783 million, mainly byusing the proceeds from the Portfolio Financing Facility.
· Delta Fund made distributions and repaid the principal for investments tothird-party investors totaling ¥159,907 million, mainly by using the proceeds from the sale of DiDi shares to SoftBank Vision Fund.

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

29

SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 30, 2019

Notes for “1. Results of Operations”
1 The names of the investments of SoftBank Vision Fund are presented in the order of the size of the investments’ impact on the Com-pany’s financial results, unless otherwise stated.
2 The sum of amounts drawn down and invested and/or reserved to make investments
3 The presentation of the interest-bearing debt and finance cost of SoftBank Group Corp. includes borrowings made by Skywalk Finance

GK, a wholly owned subsidiary of the Company, using Alibaba shares. The borrowings are not guaranteed by SoftBank Group Corp.,
hence non-recourse to the company.
4 Contributions from limited partners of SoftBank Vision Fund excludes the amount that was repaid to limited partners due to investment
plan changes and other reasons after the contribution had been made.
5 The Company’s obligation to Delta Fund is offset against the cost of the investment securities in DiDi acquired by the Company andthen transferred to Delta Fund.
6 Non-recallable contribution of SoftBank Vision Fund represents the applicable investment principal that was returned to limited partners by using the proceeds from the sale of Flipkart Private Limited shares and the Margin Loan.
7 Non-recallable contribution of Delta Fund represents the applicable principal for the investment in DiDi, which was returned to limited
partners after the sale of its shares to SoftBank Vision Fund.
8
World Semiconductor Trade Statistics (WSTS) as of August 2019
9 This analysis is based on the actual shipments of royalty units (chips incorporating Arm technology) by Arm licensees for the threemonth period ended June 30, 2019, as reported by licensees in royalty reports. Arm’s licensees report their actual shipments of royalty
units one quarter in arrears, and therefore, the current quarter’s royalty unit analysis is based on chips shipped in the prior quarter. In
contrast, royalty revenues are accrued in the same quarter the chips are shipped, based on estimates.

30

SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 30, 2019

2. Notes to Summary Information(1) Changes in Accounting Policies(Changes in accounting policies required by IFRSs)
IFRS 16 “Leases” has been adopted during the three-month period ended June 30, 2019.
The details are described in “Note 1. Significant accounting policies” in “(6) Notes to Condensed Interim
Consolidated Financial Statements” under “3. Condensed Interim Consolidated Financial Statements and Primary
Notes.”(2) Changes in Accounting Estimates
Sprint entered into a sale and leaseback contract for their corporate headquarters (buildings, land, and other) andaccordingly, the related assets were measured at fair value after deducting the sale cost and were less than theircarrying amounts. As a result, an impairment loss was recorded for the three-month period ended June 30, 2019. The
sale closed and the leaseback contract commenced on July 9, 2019. The details are described in “Note 13. Other
operating loss” in “(6) Notes to Condensed Interim Consolidated Financial Statements” under “3. Condensed Interim
Consolidated Financial Statements and Primary Notes.”

31

SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 30, 2019

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

Definition

SoftBank Group Corp.

SoftBank Group Corp. (stand-alone basis)

The Company

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

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

Delta FundSB Delta Fund (Jersey) L.P.

SBIA

SB Investment Advisers (UK) Limited

SprintSprint Corporation

Arm

Arm Limited

Brightstar

Brightstar Global Group Inc.

Fortress

Fortress Investment Group LLC

Alibaba

Alibaba Group Holding Limited

32

SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 30, 2019(1) Condensed Interim Consolidated Statement of Financial Position(Millions of yen)

As ofMarch 31, 2019
AssetsCurrent assets
Cash and cash equivalents
Trade and other receivables
Other financial assets
Inventories
Other current assets
Subtotal
Assets classified as held for sale
Total current assets
Non-current assets
Property, plant and equipment
Right-of-use assets
Goodwill
Intangible assets
Costs to obtain contracts
Investments accounted for using the equity method
Investments from SoftBank Vision Fund and Delta Fund
accounted for using FVTPL
Investment securities
Other financial assets
Deferred tax assets
Other non-current assets
Total non-current assets
Total assets

33

As of
September 30, 2019

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

4,259,177
2,282,416
180,468
301,839423,878
7,447,778
7,447,778

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

2,960,205
2,235,685
4,083,280
6,628,147
403,468
2,847,700

7,115,629

7,484,921

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

1,323,820
1,035,190
193,813
204,694
29,400,923
36,848,701

SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 30, 2019

(Millions of yen)

As ofMarch 31, 2019
Liabilities and equity
Current liabilities
Interest-bearing debt
Lease liabilities
Deposits for banking business
Third-party interests in SoftBank Vision Fundand Delta Fund
Trade and other payables
Derivative financial liabilities
Other financial liabilities
Income taxes payables
Provisions
Other current liabilities
Total current liabilities
Non-current liabilities
Interest-bearing debt
Lease liabilities
Third-party interests in SoftBank Vision Fundand Delta Fund
Derivative financial liabilities
Other financial liabilities
Defined benefit liabilities
Provisions
Deferred tax liabilities
Other non-current liabilities
Total non-current liabilities
Total liabilities
EquityEquity attributable to owners of the parent
Common stock
Capital surplus
Other equity instruments
Retained earnings
Treasury stock
Accumulated other comprehensive income
Total equity attributable to owners of the parent
Non-controlling interests
Total equity
Total liabilities and equity

34

As of
September 30, 2019

3,480,960
745,943

3,281,871
612,194
796,624

29,677

11,874

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

1,753,834
136,497
10,401
136,806
27,606688,661
7,456,368

12,204,146-

12,733,603
1,460,936

4,107,288

4,561,206

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

151,802
86,978
121,865
157,270
1,335,720
159,327
20,768,707
28,225,075

238,772
1,467,762
496,876
5,571,285(443,482)
290,268
7,621,481
1,387,723
9,009,204
36,096,476

238,772
1,529,114
496,876
5,392,636(92,962)(252,162)
7,312,274
1,311,352
8,623,626
36,848,701

SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 30, 2019(2) Condensed Interim Consolidated Statement of Income and Condensed Interim Consolidated Statement ofComprehensive Income
For the six-month period ended September 30
Condensed Interim Consolidated Statement of Income(Millions of yen)

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Gain relating to loss of control over subsidiaries
Other operating loss
Operating income (excluding income from SoftBank
Vision Fund and Delta Fund)
Operating income from SoftBank Vision Fundand Delta Fund
Operating income
Finance cost
Income on equity method investments
Foreign exchange gain (loss)
Derivative gain (loss)
Gain relating to settlement of variable prepaid forward
contract using Alibaba shares
Gain (loss) from financial instruments at FVTPL
Change in third-party interests in SoftBank Vision Fundand Delta Fund
Other non-operating income
Income before income tax
Income taxes
Net income
Net income attributable to
Owners of the parent
Non-controlling interests

Earnings per share*
Basic earnings per share (Yen)
Diluted earnings per share (Yen)Six-month period ended
September 30, 2018

Six-month period ended
September 30, 2019

4,653,853(2,722,539)
1,931,314

4,651,724(2,697,501)
1,954,223(1,288,197)(1,338,758)

176,261(31,096)

11,879(70,257)

788,282

557,087

632,434(572,639)

1,420,716(322,342)
110,338
29,942
42,407(15,552)(303,538)
449,846(5,723)(111,306)-

1,218,527

203,866(351,781)(199,757)

180,775

116,919
1,402,089(531,419)
870,670

55,649
1,116,897(584,712)
532,185

840,10330,567
870,670

421,552
110,633
532,185

378.11376.13195.66190.30

Note:*The Company conducted a share split at a ratio of two-for-one effective June 28, 2019. “Basic earnings per share” and “Diluted
earnings per share” are calculated assuming that the share split was conducted at the beginning of the fiscal year ended March 31,
2019.

35

SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 30, 2019

Condensed Interim Consolidated Statement of Comprehensive Income(Millions of yen)Six-month period ended
September 30, 2018

Six-month period ended
September 30, 2019

870,670

532,185(1,037)(21,846)(525)(1,037)(22,371)(689)(24,438)622
36,636211,896(595,820)

2,682

1,030

189,451(557,532)

188,414
1,059,084(579,903)(47,718)

999,177
59,907
1,059,084(137,296)
89,578(47,718)

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

36SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 30, 2019

For the three-month period ended September 30
Condensed Interim Consolidated Statement of Income(Millions of yen)Three-month period ended Three-month period ended
September 30, 2018
September 30, 2019
Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Gain relating to loss of control over subsidiaries
Other operating loss
Operating income (excluding income from SoftBank
Vision Fund and Delta Fund)
Operating income from SoftBank Vision Fundand Delta Fund
Operating income
Finance cost
Income on equity method investments
Foreign exchange gain
Derivative gain (loss)
Gain (loss) from financial instruments at FVTPL
Change in third-party interests in SoftBank Vision Fundand Delta Fund
Other non-operating income
Income before income tax
Income taxes
Net income
Net income attributable to
Owners of the parent
Non-controlling interests

Earnings per share*
Basic earnings per share (Yen)
Diluted earnings per share (Yen)

2,381,070(1,405,879)
975,191

2,315,327(1,361,646)
953,681(660,212)(675,644)

14,914(16,660)

11,879(24,015)

313,233

265,901

392,490(970,269)

705,723(173,875)
72,63317,01796,487
109,324(704,368)(149,692)
359,731783(103,634)(379,277)(126,868)

365,263

129,344829,785(287,235)
542,550

45,747(565,447)(79,847)(645,294)

526,416
16,134
542,550(700,167)
54,873(645,294)

237.33235.95(341.80)(345.19)

Note:* The Company conducted a share split at a ratio of two-for-one effective June 28, 2019. “Basic earnings per share” and “Diluted
earnings per share” are calculated assuming that the share split was conducted at the beginning of the fiscal year ended March 31,
2019.

37

SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 30, 2019

Condensed Interim Consolidated Statement of Comprehensive Income(Millions of yen)Three-month period ended
September 30, 2018

Three-month period ended
September 30, 2019542,550(645,294)(1,785)(21,846)(515)(1,785)(22,361)(724)(3,838)56
13,655

194,875(150,296)

16,4789,350

206,791(127,235)

205,006
747,556(149,596)(794,890)

719,561
27,995
747,556(844,095)
49,205(794,890)

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

38SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 30, 2019(3) Condensed Interim Consolidated Statement of Changes in Equity
For the six-month period ended September 30, 2018
(Millions of yen)

Equity attributable to owners of the parent

As of April 1, 2018
Effect of retrospective
adjustments due to adoption of
new standards*
As of April 1, 2018
(after adjustments)
Comprehensive income
Net income
Other comprehensive
incomeTotal comprehensive income
Transactions with owners andother transactions
Cash dividends
Distribution to owners of other
equity instruments
Transfer of accumulated othercomprehensive income toretained earnings
Purchase and disposal of treasury
stock
Changes in interestsin subsidiaries
Changes in associates’interests in their subsidiaries
Changes in interests in associates’
capital surplus
Share-based payment transactions
Other
Total transactions with owners
and other transactions
As of September 30, 2018

Commonstock
238,772

Capitalsurplus256,768

Other equity
instruments

496,876

Retainedearnings
3,940,259

Treasurystock(66,458)---

300,615

238,772

256,768

496,876

Accumulated
othercomprehensive
income317,959

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

242,787

4,240,874(66,458)

260,1315,426,963---

840,103--

840,103

-

-

-

-

-

159,074

159,074---

840,103-

159,074

999,177---(23,969)--(23,969)---(16,087)--(16,087)

-

-

-

261

-

(261)

-

-

902

-

-

3,562

-

4,464

-

(55,475)

-

-

-

-

(55,475)

-

4,042

-

-

-

-

4,042

-

2,133

-

-

-

-

2,133

-

3,103
684

-

-

-

-

3,103
684

-

(44,611)-(39,795)

3,562

(261)

(81,105)

238,772

212,157

496,876

5,041,182(62,896)

418,944

6,345,035

39

SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 30, 2019

(Millions of yen)

As of April 1, 2018
Effect of retrospective
adjustments due to adoption of
new standards*
As of April 1, 2018
(after adjustments)
Comprehensive income
Net income
Other comprehensive
incomeTotal comprehensive income
Transactions with owners andother transactions
Cash dividends
Distribution to owners of other
equity instruments
Transfer of accumulated othercomprehensive income toretained earnings
Purchase and disposal of treasury
stock
Changes in interestsin subsidiaries
Changes in associates’interests in their subsidiaries
Changes in interests in associates’
capital surplus
Share-based payment transactions
Other
Total transactions with owners
and other transactions
As of September 30, 2018

Noncontrollinginterests
1,088,846

Total equity
6,273,022

21,300264,087

1,110,146

6,537,109

30,567

870,670

29,340188,41459,907

1,059,084(30,431)(54,400)-(16,087)

-

-

-

4,464

(139,281)(194,756)

-

4,042

-

2,133

(2,040)
(192)

1,063
492

(171,944)(253,049)

998,1097,343,144

Note:* As a result of the adoption of IFRS 9 “Financial Instruments” and IFRS 15 “Revenue from Contracts with Customers,” cumulative
effects of retrospective adjustments are recognized as adjustments to the opening balance of retained earnings and accumulated
other comprehensive income.

40

SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 30, 2019

For the six-month period ended September 30, 2019
(Millions of yen)

Equity attributable to owners of the parent

As of April 1, 2019
Effect of retrospective
adjustments due to adoption of
new standards*
As of April 1, 2019
(after adjustments)
Comprehensive income
Net income
Other comprehensive
incomeTotal comprehensive income
Transactions with owners andother transactions
Cash dividends
Distribution to owners of other
equity instruments
Transfer of accumulated othercomprehensive income toretained earnings
Purchase and disposal of treasury
stock
Retirement of treasury stock
Changes in interestsin subsidiaries
Changes in associates’interests in their subsidiaries
Changes in interests in associates’
capital surplus
Share-based payment transactions
Other
Total transactions with owners
and other transactions
As of September 30, 2019

Commonstock
238,772

Capitalsurplus1,467,762

Other equity
instruments

496,876

Retainedearnings
5,571,285

Treasurystock(443,482)---

13,997

238,772

1,467,762

496,876---

Accumulated
othercomprehensive
income290,268

Total
7,621,481--

13,997

5,585,282(443,482)

290,268

7,635,478-

421,552--

421,552

-

-

-

-

(558,848)(558,848)---

421,552-(558,848)(137,296)---(23,184)--(23,184)---(15,344)--(15,344)---(16,418)-

16,418

-

-

(739)

-

(1,116)(207,616)-(209,471)---(558,136)

558,136---

59,400----59,400-(1,106)

-

-

-

-

(1,106)

-

1,234

-

-

-

-

1,234

-

2,563
-

-

-

-

-

2,563
-

-

61,352-(614,198)

350,520

16,418(185,908)

238,772

1,529,114

496,876

5,392,636(92,962)(252,162)

7,312,274

41

SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 30, 2019

(Millions of yen)

As of April 1, 2019
Effect of retrospective
adjustments due to adoption of
new standards*
As of April 1, 2019
(after adjustments)
Comprehensive income
Net income
Other comprehensive
incomeTotal comprehensive income
Transactions with owners andother transactions
Cash dividends
Distribution to owners of other
equity instruments
Transfer of accumulated othercomprehensive income toretained earnings
Purchase and disposal of treasury
stock
Retirement of treasury stock
Changes in interestsin subsidiaries
Changes in associates’interests in their subsidiaries
Changes in interests in associates’
capital surplus
Share-based payment transactions
Other
Total transactions with owners
and other transactions
As of September 30, 2019

Noncontrollinginterests
1,387,723

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

12,6401,386,366

9,021,844

110,633

532,185(21,055)(579,903)

89,578(47,718)(85,137)(108,321)-(15,344)---(209,471)--(74,280)(14,880)-(1,106)-

1,234(6,745)
1,570(4,182)
1,570(164,592)(350,500)

1,311,352

8,623,626

Note:* As a result of the adoption of IFRS 16 “Leases,” cumulative effects of retrospective adjustments are recognized as adjustments tothe opening balance of retained earnings. The details are described in “(3) Effect of adopting new standards and interpretations” in“Note 1. Significant accounting policies” under “(6) Notes to Condensed Interim Consolidated Financial Statements.”

42

SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 30, 2019(4) Condensed Interim Consolidated Statement of Cash Flows(Millions of yen)Six-month period ended
September 30, 2018

Six-month period ended
September 30, 2019

870,670

532,185

Depreciation and amortization

824,516

976,346

Gain relating to loss of control over subsidiaries(Gain) loss on investments at SoftBank Vision Fundand Delta Fund
Finance cost

(176,261)(11,879)(649,357)

529,328

322,342

303,538

Income on equity method investments(110,338)(449,846)

Derivative (gain) loss
Gain relating to settlement of variable prepaid forward
contract using Alibaba shares(42,407)111,306-(1,218,527)(Gain) loss from financial instruments at FVTPL(203,866)

351,781

199,757(180,775)(146,861)(49,926)

531,419584,712(2,431)(186,577)
39,488(18,265)(22,289)(152,516)(59,049)(1,552)

Subtotal

1,251,829

1,242,837

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

22,629(322,087)(266,966)
97,370782,775

27,087(296,850)(1,040,058)
440,643
373,659(700,953)(635,953)(408,791)
173,344(648,393)
128,485(362,331)(1,063,737)

421,92140,635(64,028)
83,653(7,826)
1,518(225,297)(38,818)

195,897

40,844(190,660)
25,856(454,232)(78,355)
46,167(2,391)

Proceeds from withdrawal of time deposits

444,742

310

Other

(57,189)

91,893(1,118,068)(2,125,621)

Cash flows from operating activities
Net income

Change in third-party interests in SoftBank Vision Fundand Delta Fund
Foreign exchange (gain) loss and other non-operating
incomeIncome taxes
Increase in trade and other receivables
Increase in inventories
Increase (decrease) in trade and other payables
Other

Cash flows from investing activities
Purchase of property, plant and equipment, and intangible
assetsPayments for acquisition of investments
Proceeds from sales/redemption of investments
Payments for acquisition of investments by SoftBank
Vision Fund and Delta Fund
Proceeds from sales of investments by SoftBank Vision
Fund and Delta FundPayments for acquisition of control over subsidiaries
Proceeds from loss of control over subsidiaries, net
Payments for acquisition of marketable securities for
short-term trading
Proceeds from sales/redemption of marketable securities
for short-term trading
Payments for loan receivables
Collection of loan receivables
Payments into time deposits

Net cash used in investing activities

43SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 30, 2019

(Millions of yen)Six-month period ended
September 30, 2018

Six-month period ended
September 30, 2019

26,044

553,674

4,507,706(4,110,627)

5,196,627(3,592,775)-(359,112)

394,194

1,356,554(394,207)(616,690)(228,641)(46,651)(16,087)(12)(15,344)(215,941)

Cash dividends paid

(23,949)(23,162)

Cash dividends paid to non-controlling interests(29,973)(84,386)

Other(61,503)

38,236

62,9452,191,030

99,370(38,409)(Decrease) increase in cash and cash equivalents(172,978)400,659

Cash and cash equivalents at the beginning of the period

3,334,650

3,858,518

Cash and cash equivalents at the end of the period

3,161,672

4,259,177

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 SoftBank Vision Fundand Delta Fund from third-party investors
Distribution/repayment from SoftBank Vision Fundand Delta Fund to third-party investors
Purchase of shares of subsidiaries from non-controllinginterests
Distribution to owners of other equity instruments
Purchase of treasury stock

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

44

SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 30, 2019(5) Significant Doubt about Going Concern Assumption
There are no applicable items.
(6) Notes to Condensed Interim Consolidated Financial Statements
1. Significant accounting policies
Significant accounting policies applied to the condensed interim consolidated financial statements are the same as theaccounting policies applied to the consolidated financial statements for the fiscal year ended March 31, 2019, except
as described herein. In addition, income taxes for the six-month period ended September 30, 2019 are calculated basedon the estimated effective tax rate and certain defined benefit liabilities for the six-month period ended September 30,
2019 are calculated by predictive computation based on a reasonable estimation in accordance with the results of an
actuarial calculation as of March 31, 2019.
(1) Adoption of new standards and interpretations
The Company has adopted the following standards during the three-month period ended June 30, 2019.
Standard/interpretation

IFRS 16

LeasesOutline of the new/revised standards
IFRS 16 replaces the previous IAS 17 and IFRIC 4. Mainrevisions are:・to apply a control model for the identification of leases,
distinguishing between leases and service contracts; and・to eliminate the finance and operating lease classification
for a lessee and require the recognition of the right-of-use
asset and the lease liability for lease transactions.

There is no significant impact to the condensed interim consolidated financial statements due to the adoption of theother new accounting standards or interpretations.
In accordance with the transitional provisions of IFRS 16 “Leases,” the Company retrospectively recognized thecumulative effect arising from initial adoption of this standard by adjusting the balance of retained earnings as ofApril 1, 2019. Accordingly, comparative information for the fiscal year ended March 31, 2019 is not restated,
except for lease transactions of intangible assets disclosed below.
The Company does not apply IFRS 16 to leases of intangible assets and, therefore, restated comparative informationon leases of intangible assets for the fiscal year ended March 31, 2019 in accordance with IAS 8 “Accounting
Policies, Changes in Accounting Estimates and Errors.”
In accordance with the transitional provision, the Company adopted a practical expedient that does not require theCompany to reassess whether a contract is, or contains, a lease when applying IFRS 16. Accordingly, except for the
aforementioned leases of intangible assets, the Company applies IFRS 16 to contracts that were previously
identified as a lease under IAS 17 and IFRIC 4 and does not apply IFRS 16 to contracts that were not previously
identified as a lease under such standards, at the date of initial adoption.
In addition to the above, the Company applies the following practical expedients in accordance with the transitional
provisions.
・A practical expedient that allows a lessee to rely on its assessment of whether lease contracts are onerous applying
IAS 37 “Provisions, Contingent Liabilities and Contingent Assets” on a lease-by-lease basis as an alternative toperforming an impairment review.
・A practical expedient that allows a lessee to exclude initial direct costs from the measurement of the right-of-use
asset on a lease-by-lease basis at the date of initial adoption.
・A practical expedient that allows a lessee to use hindsight on a lease-by-lease basis, such as in determining thelease term if the contract contains options to extend or terminate the lease.

45

SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 30, 2019

・A practical expedient that allows, on a lease-by-lease basis, measurement of a right-of-use asset at the date ofinitial adoption for leases previously classified as an operating lease applying IAS 17 at an amount equal to thelease liability.
(2) Significant accounting policies changed due to the adoption of new standards and interpretations
Lease
a. Overall(a) Identifying a lease
At inception of a contract, the Company assesses whether the contract is, or contains, a lease. The Company
deems a contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset
for a period of time in exchange for consideration. If the following conditions are met, the Company deems thatthe contract conveys the right to control the use of an identified asset.
i. The use of the identified asset is specified in a contract and the lessor does not have the right to substitute theasset.
ii. Throughout the period of use, the lessee has the right to obtain substantially all of the economic benefits fromuse of the identified asset.
iii. The lessee has the right to direct the use of the identified asset. Where the relevant decisions about how and forwhat purpose the asset is used are predetermined, the lessee is deemed to have the right to direct the use of theidentified asset if:
・the lessee has the right to operate the asset; or・the lessee designed the asset in a way that predetermines how and for what purpose the asset will be used.
(b) Lease term
The lease term is determined as the non-cancellable period of a lease, together with both:・periods covered by an option to extend the lease if the lessee is reasonably certain to exercise that option; and・periods covered by an option to terminate the lease if the lessee is reasonably certain not to exercise that option.
b. Lessee(a) Separating components of a contract
For a contract that is, or contains, a lease, the Company accounts for each lease component within the contract asa lease separately from non-lease components of the contract by allocating the consideration in the contract toeach lease component on the basis of the relative stand-alone price of the lease component and the aggregate
stand-alone price of the non-lease components.
(b) Recognition exemptions
The Company does not apply the exemptions from IFRS 16 requirements to short-term leases and leases forwhich the underlying asset is of low value.
(c) Lease transactions of intangible assets
The Company does not apply IFRS 16 to leases of intangible assets.
(d) Right-of-use asset
At the commencement date, the Company recognizes a right-of-use asset and a lease liability. The right-of-use
asset is initially measured at cost. The cost of the right-of-use asset comprises: the amount of the initial
measurement of the lease liability; any lease payments made at or before the commencement date; any initial
direct costs; and an estimate of costs to be incurred in dismantling and removing the underlying asset, restoring
the site on which it is located or restoring the underlying asset; less any lease incentives received.
After the initial measurement, the right-of-use asset is depreciated on a straight-line basis: (a) over the estimateduseful life if the transfer of ownership of the underlying asset is certain; or (b) over the shorter of the lease term or
the estimated useful life of the leased asset if the transfer of ownership is not certain. The estimated useful life of
the right-of-use asset is determined by the same method applied to property, plant and equipment. As a result of
the adoption of IFRS 16, favorable lease contracts that were previously recognized as intangible assets, except for
those related to FCC licenses, have been reclassified to the right-of-use assets, and related items in othernon-current liabilities as well as onerous lease contracts that were previously recognized as other current
liabilities are deducted from the right-of-use assets. Further, if the right-of-use asset is impaired, an impairment
loss is deducted from the carrying amount of the right-of-use asset.

46

SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 30, 2019(e) Lease liability
At the commencement date, the Company measures the lease liability at the present value of the lease paymentsthat will be paid over the lease term after that date. In calculating the present value, the interest rate implicit in thelease is used as a discount rate if that rate can be readily determined. If that rate cannot be readily determined, theCompany’s incremental borrowing rate is used.
The lease payments included in the measurement of the lease liability mainly comprise: fixed payments; lease
payments to be made during extension periods, if the lease term reflects the exercise of an option to extend thelease; and payments of penalties for terminating the lease, if the lease term reflects the exercise of an option toterminate the lease.
After the initial measurement, the lease liability is measured at amortized cost using an effective interest method.
The lease liability is remeasured if there is a change in future lease payments resulting from a change in an index
or a rate, if there is a change in the amounts expected to be payable under a residual value guarantee, or if there isa change in the assessment of the possibility of an option to extend or terminate the lease being exercised.
If the lease liability is remeasured, the carrying amount of the right-of-use asset is also adjusted by the amount of
the remeasurement of the lease liability. However, if the amount of liability reduced by the remeasurement of thelease liability exceeds the carrying amount of the right-of-use asset, any remaining amount of the remeasurement
after reducing the right-of-use asset to zero is recognized in profit or loss.
c. Lessor(a) Separating components of a contract
For a contract that is, or contains, a lease, the Company allocates the consideration in the contract applying IFRS
15 to lease components and non-lease components of the contract.
(b) Classification of leases
At the commencement of a lease contract, the Company classifies whether the contract is a finance lease or an
operating lease. A lease is classified as a finance lease if it transfers substantially all the risks and rewards
incidental to ownership of an underlying asset. Otherwise, a lease is classified as an operating lease. The
Company assesses that substantially all the risks and rewards incidental to ownership of an underlying asset aretransferred in cases where, the lease term is for the major part of the economic life of the underlying asset, or the
total amount of present value of the lease payment is substantially all the amount of fair value of the asset.
(c) Sublease classification
If the Company is a party to a sublease contract, the Company accounts for the head lease (lessee) and thesublease (lessor) separately. When classifying the sublease as a finance lease or an operating lease, the Company
considers the risks and rewards incidental to, and the useful life of, the right-of-use asset that is recognized by
the Company in the head lease, instead of that of the leased asset.
(d) Recognition and measurement
Total lease payments received from operating leases received during the lease term are recognized as income ona straight-line basis over the lease term.
(3) Effect of adopting new standards and interpretations
At the initial adoption of IFRS 16, the Company recognized lease liabilities for those lease transactions that werepreviously classified as an operating lease under IAS 17. These lease liabilities are measured at the present value ofthe lease payments that have not yet been paid at the date of initial adoption of IFRS 16, discounted using theCompany’s incremental borrowing rate at that date. The weighted average incremental borrowing rate applied to leaseliabilities at the initial adoption is 3.15%.
The Company does not apply IFRS 16 to leases of intangible assets and, therefore, restated comparative informationon leases of intangible assets for the fiscal year ended March 31, 2019 in accordance with IAS 8 “Accounting Policies,
Changes in Accounting Estimates and Errors.” As a result, the presentation of the Company’s borrowings for certain
software development has been changed. The details are described in “(1) Components of interest-bearing debt” under“8. Interest-bearing debt.”
Further, before applying IFRS 16, commitments under Sprint’s lease agreements for spectrum licenses held by third
parties were included in the notes for the future minimum lease payments payable under operating leases as they weredeemed to be equivalent to operating leases. These commitments, however, are not included in “Undiscounted future

47

SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 30, 2019minimum lease payments payable under operating leases as of March 31, 2019” in the table below because they are
not leases within the scope of IFRS 16. The amount excluded is ¥746,787 million.
The difference between the future minimum lease payments payable under operating leases as of March 31, 2019
excluding the commitments described above and lease liabilities recognized as of April 1, 2019 is as follows:(Millions of yen)

Undiscounted future minimum lease payments payable underoperating leases as of March 31, 2019
Adjustments by discounting the future minimum lease
payments payable under operating leases above
Discounted future minimum lease payments payable underoperating leases as of April 1, 2019
Lease obligations relating to leases that were classified as afinance lease
Adjustments attributable to revision of the lease term
Effect from the classification of non-lease component
Adjustments attributable to other factors
Lease liabilities as of April 1, 2019

1,917,239(206,046)
1,711,193
879,723(124,242)(121,406)(3,470)2,341,798

As a result of the adoption of IFRS 16, the assets recognized under finance leases as a lessee that were previously
included in property, plant and equipment, are reclassified to right-of-use assets. Lease transactions, which werepreviously classified and accounted for as operating leases, are also recorded as right-of-use assets. As a result, on
April 1, 2019, property, plant and equipment decreased by ¥1,157,008 million and right-of-use assets increased by¥2,525,152 million.
(4) Significant accounting policies for SoftBank Vision Fund and Delta Fund segment
For SoftBank Vision Fund and Delta Fund, the Company applies the following accounting policies.
a. Consolidation of the SoftBank Vision Fund and Delta Fund segment by the Company
SoftBank Vision Fund and Delta Fund are limited Partnerships established by their respective General Partners which
are wholly-owned subsidiaries of the Company, and by their form of organization, qualify as structured entities.
SoftBank Vision Fund and Delta Fund are consolidated by the Company for the following reasons.
The various entities comprising SoftBank Vision Fund and Delta Fund make investment decisions through theirrespective Investment Committee, which were established as committees of SBIA. SBIA is an advisory company andis a wholly-owned subsidiary of the Company. As such, the Company has power as defined under IFRS 10“Consolidated Financial Statements” over SoftBank Vision Fund and Delta Fund. Furthermore, SBIA receives
performance fees and the Company receives distributions attributable to limited Partners based on the investment
performance as returns from the Funds. The Company has the ability to affect those returns through its power over theFunds, and therefore, the Company is deemed to have control as stipulated in IFRS 10 over each Fund.
Inter-company transactions such as management fees and performance fees to SBIA paid or to be paid from SoftBank
Vision Fund and Delta Fund are eliminated in consolidation.
b. Portfolio company investments made by SoftBank Vision Fund and Delta Fund(a) Investments in subsidiaries
Of the portfolio company investments made by SoftBank Vision Fund, the portfolio companies that the Company isdeemed to control under IFRS 10 are subsidiaries of the Company. Accordingly, their results of operations, assets
and liabilities are included in the Company’s condensed interim consolidated financial statements.
Gain and loss on investments in the subsidiaries of the Company which are recognized in the SoftBank Vision Fundare eliminated in consolidation.

48

SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 30, 2019(b) Investments in associates and joint ventures
Of the portfolio company investments made by SoftBank Vision Fund, the portfolio companies over which theCompany has significant influence under IAS 28 “Investments in Associates and Joint Ventures” are associates of
the Company, and the portfolio companies that are joint ventures of the SoftBank Vision Fund when, as defined
under IFRS 11 “Joint Arrangements,” the SoftBank Vision Fund has joint control with other investors undercontractual arrangements and the investors have rights to the net assets of the arrangement.
The investments in associates and joint ventures of the Company made by SoftBank Vision Fund are accounted for
as financial assets at FVTPL in accordance with paragraph 18 of IAS 28, and presented as “Investments from
SoftBank Vision Fund and Delta Fund accounted for using FVTPL” in the condensed interim consolidated statementof financial position. The payments for these investments are presented as “Payments for acquisition of investments
by SoftBank Vision Fund and Delta Fund” under cash flows from investing activities in the condensed interim
consolidated statement of cash flows.
(c) Other investments
Investments other than those in associates or joint ventures of the Company made by the SoftBank Vision Fund andDelta Fund are accounted for as financial assets at FVTPL. The presentation of these investments in the condensed
interim consolidated statement of financial position and the condensed interim consolidated statement of cash flows
are the same as the above “(b) Investments in associates and joint ventures.”c. Presentation of the results from the SoftBank Vision Fund and Delta Fund business
Income and loss arising from the SoftBank Vision Fund and Delta Fund business are separated from operating income
and loss arising from other businesses, recognized as a component of operating income, and presented as “Operating
income from SoftBank Vision Fund and Delta Fund” in the condensed interim consolidated statement of income. Gain
and loss arising from “b. Portfolio company investments made by SoftBank Vision Fund and Delta Fund” (realized
gain and loss on sales of investments, unrealized gain and loss on valuation of investments, interest and dividend
income from investments, except for gain and loss on investments in subsidiaries) and operating expenses such asincorporation expenses of entities that comprise SoftBank Vision Fund and Delta Fund, investment research expenses
arising from SBIA, and administrative expenses arising from each entity, are included in “Operating income from
SoftBank Vision Fund and Delta Fund.”d. Bridge Investments
Investments acquired by SoftBank Group Corp. or its subsidiaries with the premise of offering such investments to
SoftBank Vision Fund and Delta Fund and were made in accordance with the investment eligibility criteria of
SoftBank Vision Fund at the time of acquisition (“Bridge Investments”) are accounted for as financial assets at
FVTPL. The Company recognizes the decision to transfer such investments after the Company obtains consent fromthe investment committee and other bodies (and certain limited partners, if applicable) at SoftBank Vision Fund andapprovals from relevant regulatory authorities. The Company changes the presentation of Bridge Investments in its
condensed interim consolidated financial statements in the annual period in which the Company made the decision totransfer such investments.
If the transfer was agreed from the beginning of the fiscal year to the end of the quarter, the Company presents items
relevant to those investments as if SoftBank Vision Fund and Delta Fund had made those investments from the
beginning of the fiscal year. Those items would be presented as “Investments from SoftBank Vision Fund and Delta
Fund accounted for using FVTPL” in the condensed interim consolidated statement of financial position, “Operating
income from SoftBank Vision Fund and Delta Fund” in the condensed interim consolidated statement of income, and“Payments for acquisition of investments by SoftBank Vision Fund and Delta Fund” under cash flows from investing
activities in the condensed interim consolidated statement of cash flows.
On the other hand, if the investments have not yet been agreed to be transferred at the end of the quarter, the Company
presents items relevant to those investments as “Investment securities” in the condensed interim consolidated
statement of financial position, “Gain from financial instruments at FVTPL” in the condensed interim consolidated
statement of income, and “Payments for acquisition of investments” under cash flows from investing activities in thecondensed interim consolidated statement of cash flows.
e. Investments that are not Bridge Investments and for which the transfer is agreed
For investments that are not Bridge Investments, if the transfer was agreed from the beginning of the fiscal year to theend of the quarter, the Company continues to apply the same accounting treatment followed in the periods prior to theagreement. They are accounted for as financial assets at FVTPL.

49

SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 30, 2019

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

50

SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 30, 2019

2. Segment information(1) Description of reportable segments
The Company’s reportable segments are components of business activities for which discrete financial
information is available, and such information is regularly reviewed by the Company’s Board of Directors inorder to make decisions about the allocation of resources and assess its performance.
For the fiscal year ended March 31, 2019, the Company had six reportable segments, the SoftBank segment, theSprint segment, the Yahoo Japan segment, the Arm segment, the SoftBank Vision Fund and Delta Fund segment,
and the Brightstar segment. However, from the three-month period ended June 30, 2019, in accordance with theconsolidation of Yahoo Japan Corporation by SoftBank Corp., business segments which are regularly reviewed
by the Company’s Board of Directors have been changed. Accordingly, the Company has revised its segmentclassifications to the following five reportable segments: the SoftBank Vision Fund and Delta Fund segment, theSoftBank segment, the Sprint segment, the Arm segment, and the Brightstar segment.
The SoftBank Vision Fund and Delta Fund segment conducts investment activities in a wide range of technology
sectors. The segment income of the SoftBank Vision Fund and Delta Fund segment consists of gain and loss
arising from investments, including subsidiaries, held by SoftBank Vision Fund and Delta Fund or investments inwhich transfer is agreed to (gain and loss on investments at SoftBank Vision Fund and Delta Fund), andoperating expenses incurred by SoftBank Vision Fund, Delta Fund, and SBIA.
The SoftBank segment provides, mainly through SoftBank Corp., mobile communications services, sale ofmobile devices, fixed-line telecommunication services such as broadband services in Japan, and through Yahoo
Japan Corporation (currently Z Holdings Corporation), internet advertising and e-commerce business. In addition,
Yahoo Japan Corporation transitioned to a holding company structure on October 1, 2019 and changed its tradename to “Z Holdings Corporation” from “Yahoo Japan Corporation.”
The Sprint segment provides, through Sprint, mobile communications services, sale and lease of mobile devices,sale of mobile device accessories, and fixed-line telecommunications services in the U.S.
The Arm segment provides, through Arm, designs of microprocessor intellectual property and related technology,
the sale of software tools, and software services.
The Brightstar segment provides, through Brightstar, distribution of mobile devices overseas.
Information on business segments which are not included in the reportable segments is classified in “Other.”“Other” includes mainly Fortress, the Fukuoka SoftBank HAWKS-related operations, and PayPay Corporation.
“Reconciliations” includes an elimination of intersegment transactions and the corporate general expenses
unallocated to each reportable segment. Expenses arising mainly from SoftBank Group Corp. and SB Group US,
Inc., which manage and supervise investment activities in the Internet, communication, and media fields overseas,
are included in corporate general expenses.
Segment information for the six-month period ended September 30, 2018 and for the three-month period ended
September 30, 2018 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 “Operating income.” Intersegment transaction prices are determined
under the same general business conditions as applied for external customers.
Under the Company’s management system, SoftBank Group Corp., a strategic holding company, exercises
overall control over its investment portfolio comprising the Group companies. Based on this system, theCompany focuses on the maximization of shareholder value (calculated as equity value of holdings – net
interest-bearing debt) over the medium to long term, and endeavors to increase the equity value of holdings. As aresult, EBITDA and adjusted EBITDA which were previously described, are not described for the three-month
period ended June 30, 2019 as they are no longer considered as major management indicators provided for
periodic reports to the management.

51

SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 30, 2019

Income and loss, which is not attributable to operating income and loss, such as financial cost and income andloss on equity method investments, is not managed by each reportable segment and therefore these income andlosses are excluded from segment performance.
For the six-month period ended September 30, 2018

(Millions of yen)

Reportable segments
SoftBank Vision
Fund and Delta Fund

SoftBank

SprintArm

Total

Brightstar

Net sales
Customers-

2,219,779

1,741,589

91,691

511,821

Intersegment

-

8,541

82,4352

13,180104,158

Total-

2,228,320

1,824,024

91,693525,001

4,669,038

632,434

524,112

193,328

141,242(8,873)

1,482,24331

251,903517,328

37,652

2,559

809,473---

176,261-

176,261

Segment income
Depreciation andamortization
Gain relating to loss ofcontrol over subsidiaries

Other

Reconciliations

Consolidated
4,653,853

Net sales
Customers

88,973-

Intersegment

5,838(109,996)

-

Total

94,811(109,996)

4,653,853

Segment income(25,116)(36,411)1,420,716

14,535508

824,516--

176,261

Depreciation andamortization
Gain relating to loss ofcontrol over subsidiaries

52

4,564,880

SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 30, 2019

For the six-month period ended September 30, 2019

(Millions of yen)

Reportable segments
SoftBank Vision
Fund and Delta Fund

SoftBank

SprintArm

Total

Brightstar

Net sales
Customers-

2,366,561

1,667,602

88,360447,430

Intersegment

-

6,739

67,497185

11,571

85,992

Total-

2,373,300

1,735,099

88,545459,001

4,655,945(572,639)

560,913

102,469(26,802)(2,895)61,046

127

330,859

586,374

35,054

3,719

956,133-

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

Other

Reconciliations

Consolidated
4,651,724

Net sales
Customers

81,771-

Intersegment

10,142(96,134)-

Total

91,913(96,134)

4,651,724

Segment income(46,348)(30,250)(15,552)

19,678535

976,346--

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

53

4,569,953

SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 30, 2019

For the three-month period ended September 30, 2018

(Millions of yen)

Reportable segments
SoftBank Vision
Fund and Delta Fund

SoftBank

SprintArm

Total

Brightstar

Net sales
Customers-

1,129,636

899,101

50,158264,415

2,343,310

Intersegment

-

2,480

41,681

1

6,758

50,920Total-

1,132,116

940,782

50,159271,173

2,394,230

392,490

263,942

95,220(3,950)(3,528)744,17425

127,239

263,793

19,115

1,380

411,552---

14,914-

14,914

Segment income
Depreciation andamortization
Gain relating to loss ofcontrol over subsidiaries

Other

Reconciliations

Consolidated

Net sales
Customers

37,760-2,381,070

Intersegment

3,371(54,291)-

Total

41,131(54,291)

2,381,070

Segment income(17,192)(21,259)

705,723

7,630

181

419,363--

14,914

Depreciation andamortization
Gain relating to loss ofcontrol over subsidiaries

54

SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 30, 2019

For the three-month period ended September 30, 2019

(Millions of yen)

Reportable segments
SoftBank Vision
Fund and Delta Fund

SoftBank

SprintArm

Total

Brightstar

Net sales
Customers-

1,203,980

805,627

42,517219,9212,272,045

Intersegment

-

4,734

33,82997

5,710

44,370Total-

1,208,714

839,456

42,614

225,6312,316,415(970,269)

284,264

39,096(15,231)(1,647)(663,787)

75

165,910284,080

17,137

1,948

469,150-

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

Other

Reconciliations

Consolidated

Net sales
Customers

43,282-2,315,327

Intersegment

5,733(50,103)-

Total

49,015(50,103)2,315,327

Segment income(24,126)(16,455)(704,368)

9,766

232

479,148--

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

55

SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 30, 2019

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

Gain and loss on investments at SoftBank Vision
Fund and Delta Fund
Realized gain and loss on sales of investments1
Unrealized gain and loss on valuation of
investments
Change in valuation for the fiscal year
Reclassified to realized gain and loss recordedin the past fiscal year2
Interest and dividend income from investments
Effect of foreign exchange translation3
Operating expenses
Operating income from SoftBank Vision Fundand Delta Fund
Finance cost (interest expenses)4
Foreign exchange gain and loss
Derivative gain and loss
Change in third-party interests in SoftBank Vision
Fund and Delta Fund
Other non-operating income and loss
Income before income tax

Six-month period ended
September 30, 2018

Six-month period ended
September 30, 2019146,682

34,805504,359(537,932)-(35,788)

2,607(4,291)
649,357

8,337
1,250
(529,328)(16,923)(43,311)

632,434(572,639)(11,711)(8,688)(22)37(80,953)-(199,757)

180,775

(535)

1,016

339,456(399,499)

Notes:
1. SoftBank Vision Fund partially sold the shares in Guardant Health Inc. in September 2019 and the gain realizedon the sale is ¥34,805 million.
2. It represents the unrealized gains and losses on valuation of Guardant Health Inc. shares recorded as “Operating
income from SoftBank Vision Fund and Delta Fund” in the past fiscal year, which are reclassified to realized gainon sales of investments due to the disposal of the shares.
3. Unrealized gains and losses on investments are translated using the average exchange rate for the quarter in which
the gains and losses were recognized, while realized gains and losses on disposal of investments are translatedusing the average exchange rate for the quarter in which the shares were disposed. Foreign currency translation

56

SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 30, 2019

effects are arising from the different foreign currency exchange rates used for unrealized gains and losses andrealized gains and losses.
4. The amount before elimination of inter-company transactions is ¥(9,224) million for the six-month period ended
September 30, 2019.

(2) Third-party interests in SoftBank Vision Fund and Delta Funda. Terms and conditions of contribution from/ distribution to Limited Partners
Contributions by the Limited Partners are classified as “Equity” and “Preferred Equity” depending on the terms
and conditions of distribution. Preferred Equity is prioritized over Equity with regard to distribution and return ofcontribution.
Performance-based distributions attributed to Limited Partners, consisting of the Company and Third Party
Investors, are calculated using the net proceeds from the investment performance of SoftBank Vision Fund andDelta fund. Those performance-based distributions and Performance fees attributed to SBIA will be allocatedusing the method specified in the Limited Partnership Agreement. The amount of performance-based distribution
attributed to Limited Partners will be allocated to each Limited Partner based on the proportion of their respective
Equity contribution. The amount of performance-based distribution is paid to each Limited Partner after SoftBank
Vision Fund and Delta Fund receives cash through dividend, or disposition or monetization of investments.
Fixed distributions are defined as distributions of Preferred Equity holders which are calculated equal to a 7%
rate per annum based on their contribution. The fixed distributions are made every last business day of the months
June and December.
In the following table, Third-party Investors contributing Equity are defined as “Investors entitled toperformance-based distribution” and Third-party Investors contributing Preferred Equity are defined as “Investors
entitled to fixed distribution.”b. Changes in interests attributable to Third-Party Investors
Changes in interests attributable to Third-Party Investors (“Third-party interests in SoftBank Vision Fund andDelta Fund”) are as follows:(Millions of yen)(For reference purposes only)
Links with the condensed interim consolidated
financial statements

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

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

4,136,965
1,356,554-

1,356,554(180,775)

180,775--(138,379)(478,311)-(478,311)(122,974)--

85,506(266,281)(138,379)

Fixed distributions(103,069)

Performance-based distributions(35,310)

Repayment to third-party investors
Exchange differences on translating
third-party interests*
As of September 30, 2019

4,573,080

57

SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 30, 2019

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

c. Uncalled committed capital from Third-Party Investors
Uncalled committed capital from Third-Party Investors as of September 30, 2019 is $19.6 billion.
(3)

Management fees and performance fees to SBIA
Terms and conditions of management fees and performance fees to SBIA, included in income before income tax
from the SoftBank Vision Fund and Delta Fund business, are as follows.
a. Management fees to SBIAManagement fees to SBIA are, in accordance with Limited Partnership Agreements, calculated by multiplying 1%
per annum by Equity contributions and paid to SBIA by each fund quarterly. A clawback provision is attached tothe management fees received, which is triggered under certain conditions based on future investment
performance.
b. Performance fees to SBIA
Same as the performance-based distributions, the amount of the performance fees to SBIA is calculated using theallocation method as specified in the Limited Partnership Agreement. SBIA is entitled to receive the performancefees when SoftBank Vision Fund and Delta Fund receive cash through disposition, dividend and monetization of
an investment.
During the investment period of SoftBank Vision Fund, payments related to the performance fees to SBIA from
disposition, dividends or monetization of investments are withheld. Instead, in accordance with the limited
partnership agreement, the amount equivalent to the performance fees withheld during the investment period is
temporarily distributed to the limited partners. The investment period of SoftBank Vision Fund ended on
September 12, 2019. Accordingly, the equivalent amount will be deducted from the performance-based
distributions to the limited partners in a post-investment period and distributed to SBIA. The performance fees to
SBIA was not distributed in the three-month period ended September 30, 2019. In addition, the performance fees
received, which is triggered under certain conditions based on future investment performance, are subject to aclawback provision.

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

As ofMarch 31, 2019113,209498,026
123,929
31,392
766,556

Contract assets
Tax receivable*
Prepaid expense
Other
Total

As of
September 30, 2019
156,780
126,819
102,873
37,406423,878

Note:* The withholding income tax of ¥422,648 million related to dividends within the group companies was refunded in July
2019.

58

SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 30, 2019

5. Assets classified as held for sale
Sale of Alibaba shares by variable prepaid forward contract
Alibaba shares of ¥224,201 million related to the settlement of a variable prepaid forward contact using Alibaba
shares was recorded as of March 31, 2019 and the contract was settled with Alibaba shares on June 3, 2019. The
details are described in “Note 17. Gain relating to settlement of variable prepaid forward contract using Alibaba
shares.”6. Property, plant and equipment
The components of the carrying amounts of property, plant and equipment are as follows:(Millions of yen)

As ofMarch 31, 2019
251,786
2,293,388
937,18188,304387,408
112,637
4,070,704

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

As of
September 30, 2019
185,891
1,350,288
868,901
80,786
358,076
116,2632,960,205

Note:* As a result of the adoption of IFRS 16, ¥1,157,008 million of property, plant and equipment relating to lease transactions
that were previously classified as a finance lease, has been reclassified to right-of-use assets.

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

As ofMarch 31, 2019
Intangible assets with indefinite useful lives
FCC licenses
Trademarks
Other
Intangible assets with finite useful lives
SoftwareTechnologies
Customer relationships
Spectrum migration costs
Management contracts1
FCC licenses2
Trademarks
Favorable lease contracts3
Other
Total

As of
September 30, 2019

4,155,126
693,861
12,763

4,041,205
675,499
12,411

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

732,671
413,012202,152
154,146
83,24264,28553,449196,075
6,628,147

Notes:
1. The management contracts reflect excess earnings in the future expected from the agreements which Fortress enteredinto regarding the management of assets under their funds.
2. As a result of the adoption of IFRS 16, the presentation of favorable lease contracts related to FCC licenses that wereidentified in business combinations in the past and were previously included in “Favorable lease contracts” has beenchanged to “FCC licenses” with finite useful lives.

59SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 30, 2019

3. As a result of the adoption of IFRS 16, favorable lease contracts, except for those related to FCC licenses, that werepreviously recognized as intangible assets have been reclassified to relevant right-of-use assets.

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

As ofMarch 31, 2019
Current
Short-term borrowings1,2
Commercial paper
Current portion of long-term borrowings3
Current portion of corporate bonds
Current portion of lease obligations4Current portion of financial liabilities relating to sale ofshares by variable prepaid forward contract5
Current portion of installment payables
Total
Non-current
Long-term borrowings1,3
Corporate bonds
Lease obligations4
Installment payables
Total

As of
September 30, 2019

499,179
42,000820,899
1,042,253
334,517

1,761,524
216,000
921,268
376,169-

730,601-

11,5113,480,960

6,910
3,281,871

5,102,091
6,538,785
557,955
5,315
12,204,146

5,349,662
7,380,197
3,744
12,733,603

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

As ofMarch 31, 2019
Current
Short-term borrowings
Total
Non-current
Long-term borrowings
Total
SoftBank Vision Fund and Delta Fund interest-bearing debt
(before elimination of inter-company transactions)Eliminated amount of inter-company transactions
SoftBank Vision Fund and Delta Fund interest-bearing debt
(after elimination of inter-company transactions)

As ofSeptember 30, 2019

900,406
900,406

898,682
898,682

12,764
12,764

12,411
12,411

913,170911,093(876,599)(286,743)

36,571

624,350

2. The increases in short-term borrowings for the six-month period ended September 30, 2019 are mainly due to increasesof ¥587,779 million and ¥437,002 million at SoftBank Vision Fund and Delta Fund and at SoftBank Corp.,
respectively.
3. In the SoftBank segment, the Company is a party to lease transactions of software mainly in relation totelecommunications equipment. The Company has not applied IFRS 16 to leases of intangible assets. Accordingly,
liabilities associated with the aforementioned transactions that were previously recognized as lease obligations are,60SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 30, 2019

after applying IFRS 16, accounted for as financial liabilities under IFRS 9 and are included in the current portion of
long-term borrowings and long-term borrowings. Consequently, the related amounts as of March 31, 2019 have been
restated accordingly. The current portion of long-term borrowings and long-term borrowings as of September 30, 2019
include ¥99,983 million (¥102,879 million as of March 31, 2019) and ¥165,288 million (¥191,297 million as of March
31, 2019) of borrowings from these transactions, respectively.
4. As a result of the adoption of IFRS 16, liabilities that were previously recorded as “Lease obligations” are reclassified
to “Lease liabilities” and are presented separately in the condensed interim consolidated statement of financial position.
5. Decrease was made due to the settlement of the variable prepaid forward contract using Alibaba shares. The details aredescribed in “Note 17. Gain relating to settlement of variable prepaid forward contract using Alibaba shares.”(2) Components of proceeds in short-term interest-bearing debt, net
The components of “Proceeds in short-term interest-bearing debt, net” in the condensed interim consolidated
statement of cash flows are as follows:(Millions of yen)Six-month period ended
September 30, 2018
53,044(27,000)
26,044

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

Six-month period ended
September 30, 2019379,674
174,000
553,674(3) Components of proceeds from interest-bearing debt
The components of “Proceeds from interest-bearing debt” in the condensed interim consolidated statement ofcash flows are as follows:(Millions of yen)

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

Six-month period ended
September 30, 2018
3,579,252
722,744

Six-month period ended
September 30, 2019
3,966,627
1,230,000

205,710-

4,507,706

5,196,627(4) Components of repayment of interest-bearing debt
The components of “Repayment of interest-bearing debt” in the condensed interim consolidated statement of cash
flows are as follows:(Millions of yen)Six-month period ended
September 30, 2018
(3,127,092)(757,640)(214,744)(11,151)(4,110,627)

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

61

Six-month period ended
September 30, 2019
(2,664,040)(922,545)(6,190)(3,592,775)

SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 30, 2019

9. Derivative financial liabilities (current liabilities)
Mainly, it was decreased due to the settlement of a variable prepaid forward contract using Alibaba shares. The details
are described in “Note 17. Gain relating to settlement of variable prepaid forward contract using Alibaba shares.”10. Other current liabilities
The components of other current liabilities are as follows:(Millions of yen)

As ofMarch 31, 2019
252,81235,339428,796
201,979
112,090
69,97757,362
1,158,355

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

As of
September 30, 2019
243,327
33,587
12,138
193,416
92,59366,756
46,844
688,661

Note:*Payment of withholding income tax of ¥422,648 million related to dividends within the group companies was made in
April 2019.

11. 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
September 30, 2019107.92132.69As ofMarch 31, 2019110.99144.98USD
GBP(2) Average rate for the quarter

For the six-month period ended September 30, 2018

USD
GBP

Three-month period ended
June 30, 2018108.71147.54(Yen)
Three-month period ended
September 30, 2018111.55145.84

For the six-month period ended September 30, 2019

USD
GBP

Three-month period ended
June 30, 2019110.00140.88(Yen)
Three-month period ended
September 30, 2019107.70132.7362

SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 30, 201912. Equity(1) Capital surplus
On June 27, 2019, Yahoo Japan Corporation issued 1,511,478,050 new shares for ¥456.5 billion to SoftBank
Corp. through a third-party allotment (the “Third-Party Allotment”). Yahoo Japan Corporation also implemented
a tender offer for its own shares from May 9, 2019 to June 5, 2019 (the “Tender Offer”), and SoftBank Group
Corp. accepted the Tender Offer and tendered its holding of common shares of Yahoo Japan Corporation, held by
its wholly-owned subsidiary SoftBank Group Japan Corporation. As a result, 1,792,819,200 of these shares(equivalent to ¥514.5 billion) were sold to Yahoo Japan Corporation on June 27, 2019.
As a result of the Third-Party Allotment and the Tender Offer, the ownership percentage in Yahoo Japan
Corporation by the Company has changed from 48.16% (ownership percentage as of March 31, 2019) to 45.52%.
Subsequently, capital surplus increased by ¥91,431 million as “Changes in interests in subsidiary.”(2) Other equity instruments
On July 19, 2017, the Company issued USD-denominated Undated Subordinated Non-Call 6 years Resettable
Notes and USD-denominated Undated Subordinated Non-Call 10 years Resettable Notes (collectively, the“Hybrid Notes”).
The Hybrid Notes are classified as equity instruments in accordance with IFRSs because the Company has theoption to defer interest payments, the notes have no maturity date, and the Company has an unconditional right toavoid delivering cash or another financial asset except for distribution of residual assets on liquidation.
(3) Treasury stock
Changes in treasury stock are as follows:(Thousands of shares)

Balance at the beginning of the period
Increase during the period

Six-month period ended
September 30, 2018

Six-month period ended
September 30, 2019

11,162

46,8271

128,6182(600)(56,873)

10,563

18,572

Decrease during the period

Balance at the end of the period

Notes:
1. For the six-month period ended September 30, 2019, due to a purchase of treasury stock under the resolution
passed at Board of Directors meeting held on February 6, 2019, the number of treasury stock increased by
19,044 thousand shares (amount purchased ¥215,931 million). In addition, under the resolution passed at theBoard of Directors meeting held on May 9, 2019, the Company conducted a share split at a ratio of two-for-one
effective June 28, 2019 and the number of treasury stock increased by 9,573 thousand shares.
2. Under the resolution passed at Board of Directors meeting held on May 30, 2019, the Company retired its
treasury stock of 55,753 thousand shares on June 10, 2019. As a result of the transaction, retaining earnings andtreasury stock decreased by ¥558,136 million, respectively.

63

SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 30, 2019(4) Accumulated other comprehensive income
The components of accumulated other comprehensive income are as follows:(Millions of yen)

As ofMarch 31, 2019
6,661

As of
September 30, 2019
5,702

Debt financial assets at FVTOCI

267

382

Cash flow hedges
Exchange differences on translating
foreign operations(45,791)(9,608)329,131(248,638)

290,268(252,162)

Six-month period ended
September 30, 2018

Six-month period ended
September 30, 2019

3,751

-

(81)

-

(37,960)(50,579)-(22,725)

7,606(3,810)972

1,507(1,349)(1,574)2,889(31,096)(70,257)

Equity financial assets at FVTOCI

Total

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

SoftBank segment
Gain from remeasurement relating to businesscombination
Other
Spring segment
Loss on disposal of property, plant andequipment1
Impairment loss on property, plant andequipment2
Gain on contract termination
Reversal of favorable lease
Other
Other
Income and loss on equity method investments
at Fortress
Total

Notes:
1. ¥50,579 million of loss resulted from the write-off of leased devices related to lease cancellations prior to the endof the scheduled customer lease terms, where customers did not return the devices to Sprint, are recognized forthe six-month period ended September 30, 2019.
2. Sprint entered into a sale and leaseback contract for their corporate headquarters (buildings, land, and other) andaccordingly, the related assets were measured at fair value after deducting the sale cost and were less than theircarrying amounts. As a result, ¥22,725 million of impairment loss was recorded for the six-month period ended
September 30, 2019. The fair value was calculated based on the sale price and classified as level 3 within the fairvalue hierarchy. In addition, the sale closed and the leaseback contract commenced on July 9, 2019.

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

64

Six-month period ended
September 30, 2018

Six-month period ended
September 30, 2019

(322,342)(303,538)

SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 30, 2019

15. Income on equity method investments
The Company applies the equity method to the consolidated financial statements of Alibaba on a three-month timelag, as it is impracticable to conform the reporting period of Alibaba to that of the Company due to the contract with
Alibaba. Adjustments are made for significant transactions or events which occurred during the intervening period
and which were publicly announced by Alibaba.
Alibaba received newly-issued share (a 33% equity interest) of Ant Small and Micro Finance Services Group Co.,
Ltd. (“Ant Financial”) in September 2019, pursuant to the 2014 share and asset purchase agreement, as amended,among Alibaba, Ant Financial, and others. The consideration paid by Alibaba to receive the newly-issued 33%
equity interest in Ant Financial was funded by payments from Ant Financial and its subsidiaries to Alibaba in
consideration for certain intellectual property rights and assets held by Alibaba. Following this, Alibaba recorded again of CNY 69.2 billion, which was the result from the transfer of such intellectual property rights and assets to
Ant Financial and the basis difference determined based on Alibaba’s share of Ant Financial’s net assets, net of its
corresponding deferred tax effect.
The Company regarded the transactions as significant transactions which occurred during the intervening period,and made an adjustment. As a result, the Company recognized ¥277,175 million of income on equity method
investments.
16. Derivative gain (loss)
For the six-month period ended September 30, 2019, ¥129,273 million of loss was recognized due to the decline infair value of warrants of The We Company (“WeWork”) held by a wholly-owned subsidiary of the Company.
17. Gain relating to settlement of variable prepaid forward contract using Alibaba shares
On June 3, 2019, a variable prepaid forward contract, which West Raptor Holdings, LLC (“WRH LLC”), a
wholly-owned subsidiary of the Company, entered into with Mandatory Exchangeable Trust (the “Trust”) on June
10, 2016, in order to sell Alibaba shares, was settled by 73,240,200 shares of Alibaba (equivalent to 2.8% of voting
right of Alibaba as of March 31, 2019). Subsequently, ¥1,218,527 million of gain relating to settlement of variable
prepaid forward contract using Alibaba shares was recorded for the six-month period ended September 30, 2019.
Alibaba shares held by WRH LLC were pledged as collateral under the variable prepaid forward contract andsubsequently, the relevant collateral contract was terminated. Alibaba shares pledged as collateral were recorded as“Assets classified as held for sale” of ¥224,201 million and “Investments accounted for using the equity method” of¥39,256 million, were included in the consolidated statement of financial position as of March 31, 2019.
The details of the variable prepaid forward contract are as follows.
WRH LLC entered into the variable prepaid forward contract on June 10, 2016, and received proceeds of ¥578,436
million ($5.4 billion) as advances received on the sale.
The Trust, on the other hand, utilized Alibaba shares scheduled to be transferred from WRH LLC at the time ofsettlement under the contract and issued $6.6 billion of Mandatory Exchangeable Trust Securities (“Trust
Securities”) which are mandatorily exchangeable into American Depositary Shares (“ADSs”) of Alibaba. The
proceeds from the sale received by WRH LLC from the Trust was $5.4 billion, which is after certain amounts fromthe $6.6 billion total of Trust Securities were deducted in order to purchase U.S. Treasury securities, which would
fund distributions on the Trust Securities, and cover expenses for the issuance of the Trust Securities.
The settlement of the Alibaba shares based on the variable prepaid forward contract is conducted concurrently withthe exchange of Trust Securities. At the exchange date (June 3, 2019), Trust Securities are exchanged for a certain
number of ADSs, determined by reference to the trading price of the ADSs at that time, and the number of Alibaba
shares sold by the variable prepaid forward contract is determined by this number of ADSs. A cap and a floor are
set for the number of shares settled, and the variable prepaid forward contract is classified as a hybrid financial
instrument with embedded derivatives of a collar transaction.

65

SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 30, 2019

The Company accounts for the variable prepaid forward contract by bifurcating the main contracts and embedded
derivatives. The Company received ¥578,436 million and initially recognized ¥674,023 million as financial
liabilities relating to the sale of shares through the variable prepaid forward contract and ¥95,587 million as
derivative assets. Subsequent to initial recognition, financial liabilities relating to the sale of shares through thevariable prepaid forward contract were measured at amortized cost and embedded derivatives were measured at fairvalue.

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

third party to
SoftBank

Alibaba shares pledged as collateralby variable prepaid forward contract

Mandatory Exchangeable TrustOffering of Mandatory Exchangeable
Trust Securities (“Trust Securities”)$6.6 billion for the total issuanceamount of Trust Securities
Investors

18. Gain (loss) from financial instruments at FVTPL
For the six-month period ended September 30, 2019, ¥374,675 million of loss was recognized due to the decline infair value of WeWork shares held by a wholly-owned subsidiary of the Company.
In addition, gain and loss on valuation of WeWork shares held by SoftBank Vision Fund and Delta Fund areincluded in “Operating income from SoftBank Vision Fund and Delta Fund” under the condensed interim
consolidated statement of income.

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

Dilution gain from changes in equity interest*

Six-month period ended
September 30, 2018
30,214Six-month period ended
September 30, 2019
28,611

15,20022,815Interst income
Gain from remeasurement relating todiscontinuing the use of the equity method
Loss on redemption of corporate bonds

89,209-(14,538)

-

Other
Total

(3,166)116,919

4,223
55,649Note:* Mainly, dilution gain arising from changes in Alibaba’s equity interest held by the Company due to the exercise ofstock options in Alibaba.

66

SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 30, 201920. Supplemental information to the condensed interim consolidated statement of cash flows(1) Income taxes paid and income taxes refunded
For the six-month period ended September 30, 2019
Payment of withholding income tax related to dividends within the group companies of ¥449,542 million, payment
of income tax mainly related to gain on sales of SoftBank Corp. shares held by SoftBank Group Japan Corporationin December 2018 of ¥321,290 million, and payment of income tax related to deemed dividends on sales of Yahoo
Japan Corporation shares held by SoftBank Group Japan Corporation due to an acquisition of its own sharesthrough the Tender Offer by Yahoo Japan Corporation of ¥78,801 million are included in “Income taxes paid.”
In addition, refunded withholding income tax related to dividends within the group companies of ¥422,648 million
is included in “Income taxes refunded.”(2) Distribution and repayment from SoftBank Vision Fund and Delta Fund to third-party investors
For the six-month period ended September 30, 2019
The distributions and repayments from SoftBank Vision Fund and Delta Fund to third-party investors are¥(138,379) million and ¥(478,311) million respectively. The details are described in “(2) Third-party interests in
SoftBank Vision Fund and Delta Fund” under “Note 3. SoftBank Vision Fund and Delta Fund business.”(3) Non-cash transactions related to sale of Alibaba shares by variable prepaid forward contract
For the six-month period ended September 30, 2019
On June 3, 2019, ¥715,044 million of current portion of financial liabilities relating to sale of shares by variable
prepaid forward contract and ¥474,468 million of derivative financial liabilities (current liabilities) recognized forsale of Alibaba shares by variable prepaid forward contract were settled with Alibaba shares. The details aredescribed in “Note 17. Gain relating to settlement of variable prepaid forward contract using Alibaba shares.”
21. Significant subsequent events(Funding Commitment from the Company to WeWork)On October 22, 2019 (ET) the Company and WeWork reached an agreement under which the Company commits toprovide funding to WeWork. The agreement includes the following:(1) Existing Payment Obligation: Execution of the Company’s April 2020 $1.5 billion payment obligation in warrants(funding commitment) at $11.60 per share (executed on October 30, 2019);(2) Tender Offer: Launch of a tender offer worth up to $3 billion to all shareholders other than the Company at a priceof $19.19 per share, expected to commence by December 31, 2019, with closing subject to regulatory approvals
and other customary closing conditions;(3) New Debt: Consisting of $1.1 billion in senior secured notes, $2.2 billion in unsecured notes, and a $1.75 billion
letter of credit facility. This funding is expected to occur after the completion of the tender offer; and(4) Joint Venture Share Swap: All of SoftBank Vision Fund’s interests in regional joint ventures outside of the Japan
joint venture will be exchanged for shares in WeWork at $11.60 per share.
After closing, and following the tender offer, the Company’s fully diluted economic ownership of WeWork will be up
to 80%. WeWork will not be a subsidiary of the Company since the Company will not hold a majority of voting rights
at any general shareholders meeting or board of directors meeting and cannot control WeWork due to its provision of
the articles of incorporation and shareholders agreement. WeWork will be an associate of the Company.

67SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 30, 2019

WeWork is invested by a wholly-owned subsidiary of the Company and SoftBank Vision Fund. The interest of thewholly-owned subsidiary of the Company is accounted for using the equity method or the fair value method throughnet profit or loss, and such profit or loss will be recorded as “Income and loss on equity method investments” or “Gainand loss from financial instruments at FVTPL,” depending on the nature of the shares held. With regard to the interestof SoftBank Vision Fund, WeWork shares continue to be measured at fair value, and changes in the fair value arerecorded in “Operating income from SoftBank Vision Fund and Delta Fund.”68