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, 2020 (IFRS)Tokyo, November 9, 2020

1.

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

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

Incomebefore income tax

Net sales
Amount%Amount%Six-month period ended
September 30, 2020

¥2,630,531

3.6¥1,441,472

Six-month period ended
September 30, 2019¥2,539,719-¥1,172,673

Net income
attributable toowners of the parent

Net income
Amount%Amount22.9¥1,879,377 253.1¥1,883,211

346.7 ¥1,562,319--¥532,185¥421,552(49.8)¥(47,718)-

Basic earnings per
share (Yen)

Diluted earnings per
share (Yen)Six-month period ended
September 30, 2020

¥950.54¥903.06

Six-month period ended
September 30, 2019¥195.66¥190.30(38.9)%

Total
comprehensive
incomeAmount%Notes:
1. Net sales and income before income tax are presented based on the amounts from continuing operations only. Year-on-year
percentage changes in net sales and income before income tax for the six-month period ended September 30, 2019 are notpresented because corresponding amounts for the six-month period ended September 30, 2019 are revised and presented
respectively. Please refer to page 69 “Note 3. Discontinued operations” in “(6) Notes to Condensed Interim Consolidated Financial
Statements” under “3. Condensed Interim Consolidated Financial Statements and Primary Notes” for details.
2. 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, 2020

¥35,648,197¥8,420,605¥7,302,753

20.5

As of March 31, 2020

¥37,257,292¥7,372,917¥5,913,613

15.9

2.

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

Dividends
Dividends per shareFirst quarter
Fiscal year ended
March 31, 2020
Fiscal year ending
March 31, 2021
Fiscal year ending
March 31, 2021
(Forecasted)

Second quarter

Third quarter

Fourth quarter

Total

(Yen)

(Yen)

(Yen)

(Yen)

(Yen)

-

22.00

-

22.00

44.00

-

22.00
-

-

-

Note:*On October 23, 2020, the Company announced that the interim dividend for the fiscal year ending March 31, 2021 was determined
under the resolution passed at the Board of Directors meeting held on October 22, 2020. However, the forecasted dividend amounts
for the fiscal year ending March 31, 2021 are still yet to be determined.

* Notes(1) Significant changes in scope of consolidation (changes in scope of consolidation of specified subsidiaries): Yes
Newly consolidated: None
Excluded from consolidation: Three entities: Sprint Corporation, Sprint Communications, Inc., Starburst I, Inc.
Notes:
1. Please refer to page 47 “(1) Significant Changes in Scope of Consolidation for the Six-Month Period Ended September
30, 2020” under “2. Notes to Summary Information” for details.
2. Foreign subsidiaries prepare stand-alone financial statements only under circumstances where it is necessary under
their local laws and practices. Applicability of Cabinet Office Ordinance on Disclosure of Corporate Affairs, etc.
Article 19, Paragraph (10), Item (i) to (iii), is determined by using the financial statements.
On the other hand, for foreign subsidiaries that do not prepare stand-alone financial statements, information on 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 from SoftBank Group Corp. and dividend
paid to SoftBank Group Corp. to total amount of operating revenue of SoftBank Group Corp.
For fund-type subsidiaries, the amount of net assets based on financial statements prepared in accordance with thecorresponding laws and practices is used to determine the applicability of Cabinet Office Ordinance on Disclosure of
Corporate Affairs, etc. Article 19, Paragraph (10), Item (ii).
(2) Changes in accounting policies and accounting estimates[1] Changes in accounting policies required by IFRSs: No[2] Changes in accounting policies other than those in [1]: No[3] Changes in accounting estimates: Yes
Please refer to page 47 “(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, 2020:
2,089,814,330 shares
As of March 31, 2020:
2,089,814,330 shares[2] Number of shares of treasury stock:
As of September 30, 2020:
210,494,347 shares
As of March 31, 2020:
21,818,471 shares[3] Number of average shares outstanding during six-month period (April-September):
As of September 30, 2020:
1,965,237,924 shares
As of September 30, 2019:
2,076,940,623 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 six-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 9, 2020 (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, 2020

(Appendix)

Contents
1. Results of Operations ................................................................................................................................................... P. 5
(1) Overview of Results of Operations ........................................................................................................................ P. 5
a. Consolidated Results of Operations................................................................................................................... P. 14
b. Results by Segment ........................................................................................................................................... P. 17(a) Investment Business of Holding Companies Segment ................................................................................ P. 18(b) SVF1 and Other SBIA-Managed Funds Segment ....................................................................................... P. 24(c) SoftBank Segment ....................................................................................................................................... P. 29(d) Arm Segment .............................................................................................................................................. P. 30(e) Other ............................................................................................................................................................ P. 34(2) Overview of Financial Position ............................................................................................................................ P. 35(3) Overview of Cash Flows ...................................................................................................................................... P. 44(4) Forecasts ............................................................................................................................................................... P. 46

2. Notes to Summary Information ........................................................................................................................ P. 47(1) Significant Changes in Scope of Consolidation for the Six-Month Period Ended September 30, 2020 .... P. 47(2) Changes in Accounting Estimates .............................................................................................................. P. 47
3. Condensed Interim Consolidated Financial Statements and Primary Notes ..................................................... P. 48(1) Condensed Interim Consolidated Statement of Financial Position............................................................. P. 50(2) Condensed Interim Consolidated Statement of Income
and Condensed Interim Consolidated Statement of Comprehensive Income ............................................ P. 52(3) Condensed Interim Consolidated Statement of Changes in Equity ............................................................ P. 56(4) Condensed Interim Consolidated Statement of Cash Flows ....................................................................... P. 60(5) Significant Doubt about Going Concern Assumption ................................................................................ P. 62(6) Notes to Condensed Interim Consolidated Financial Statements ............................................................... P. 62
Disclaimer
This material does not constitute an offer to sell, or a solicitation of an offer to buy, limited partnership interests or comparable limited
liability equity interests in any fund, including SoftBank Vision Fund 1 and SoftBank Vision Fund 2, managed by a subsidiary of
SoftBank Group Corp., including SB Investment Advisers (UK) Limited or its affiliates, or any securities in any jurisdiction, norshould it be relied upon as such in any way.
Notice Regarding PFIC Status
It is possible that SoftBank Group Corp. (“SBG”) may be a “passive foreign investment company” (“PFIC”) under the U.S. Internal
Revenue Code of 1986, as amended, for its current fiscal year due to the composition of its assets and the nature of its income. We
recommend that U.S. holders of SBG’s shares consult their tax advisers with respect to the U.S. federal income tax consequences tothem if SBG is classified as a PFIC.

1SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 30, 2020

Definition of Company Names and Abbreviations Used in This Appendix
Company names and abbreviations used in this appendix, unless otherwise stated or interpreted differently in thecontext, are as follows:
Company names / Abbreviations

Definition

SoftBank Group Corp. or SBG
SoftBank Group Corp. (stand-alone basis)
The Company
SoftBank Group Corp. and its subsidiaries*Each of the following name or abbreviations indicates the respective company and its subsidiaries, if any.
SB Northstar
SB Northstar LP
SoftBank Vision Fund 1 or SVF1*1
SoftBank Vision Fund L.P. and its alternative investment vehicles
SoftBank Vision Fund 2 or SVF2
SoftBank Vision Fund II-2 L.P. and its alternative investment vehicles*2
SBIA
SB Investment Advisers (UK) Limited
SprintSprint Corporation
T-Mobile
T-Mobile US, Inc. after merging with SprintArm
Arm Limited
Alibaba
Alibaba Group Holding Limited
The first quarter
Three-month period ended June 30, 2020
The second quarter
Three-month period ended September 30, 2020
The period
Six-month period ended September 30, 2020
The second quarter-end
September 30, 2020
The fiscal year
Fiscal year ending March 31, 2021
The previous fiscal year
Fiscal year ended March 31, 2020
The previous fiscal year-end
March 31, 2020
Notes:
1. Since the second quarter, the Company has changed the presentation of “SoftBank Vision Fund” to “SoftBank Vision Fund 1” or“SVF1” to clearly distinguish it from “SoftBank Vision Fund 2” and changed the name of the reportable segment from “SoftBank
Vision Fund and Other SBIA-Managed Funds” to “SVF1 and Other SBIA-Managed Funds.” Names of related accounts have also
been changed. See “3. Condensed Interim Consolidated Financial Statements and Primary Notes” for details.
2. The entities defined as “SoftBank Vision Fund 2” were established for the purpose of holding the investments expected to be owned
by “SoftBank Vision Fund 2,” a private fund which is expected to admit third-party investors in the future. As of the second quarterend, SoftBank Vision Fund 2 has yet to have an external close.

Exchange Rates Used for Translations
Average rate for the quarter
Fiscal year ended March 31, 2020

USD / JPY

Fiscal year ending March 31, 2021

Q1

Q2

Q3

Q4

Q1

Q2

¥110.00¥107.70¥108.98¥109.22¥107.74¥105.88

Rate at the end of the period
USD / JPY

2

March 31, 2020

September 30, 2020

¥108.83¥105.80

SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 30, 2020

CHANGES IN PRESENTATION OF CONSOLIDATED STATEMENT OF INCOME AND REPORTABLE
SEGMENTS
In the fiscal year, the presentation of the Consolidated Statement of Income and reportable segments were changed
as follows. The Consolidated Statement of Income and reportable segments for the same period of the previous fiscal
year have been restated and presented in the same manner.
Changes in presentation of Consolidated Statement of Income“Operating income” no longer presented and “gain (loss) on investments” newly presented
SoftBank Group Corp. (“SBG”) is a strategic investment holding company managing a portfolio of investments in awide range of companies, made either directly (including investments through subsidiaries) or through investment
funds (such as SVF1). On April 1, 2020, Sprint ceased to be a subsidiary of the Company following the completionof the merger between Sprint and T-Mobile US, Inc. Given that investment activities have taken on greater importancein the Company’s overall consolidated financial results, the Company has revised the presentation of the Consolidated
Statement of Income starting from the first quarter.
Specifically, “operating income” will no longer be presented in the Consolidated Statement of Income. Instead,“gain (loss) on investments” will be used in order to show investment performance in the consolidated financial
results. This change in presentation was made because the previously used “operating income” excluded gain andloss on investments, other than gain and loss on investments included in “gain on investments at SVF1 and SVF2.”
The Company determined that “operating income” was not useful in appropriately presenting the consolidated financial results of a strategic investment holding company. The newly established “gain (loss) on investments” includes(1) realized gain and loss on sales of investment securities (financial assets at FVTPL) and investments accounted
for using the equity method; (2) unrealized gain and loss on valuation of financial assets at FVTPL; (3) dividend
income from investments; and (4) derivative gain and loss related to financial assets at FVTPL and other investments.
Derivative gain and loss not included in the above “gain (loss) on investments” is shown as “derivative gain (loss)(excluding gain (loss) on investments).” Income on equity method investments, which recognizes the Company’s
equity interest in the net income and loss of applicable portfolio companies, continues to be presented as “income onequity method investments.”
In line with no longer presenting “operating income” in the Consolidated Statement of Income, the Company has
revised segment income in each reportable segment to “income before income tax.”
Classification of Brightstar in the disposal group classified as held for sale
On September 17, 2020 (U.S. time), the Company reached an agreement to sell all of its shares in Brightstar Global
Group Inc. (“Brightstar”)1 and completed the transaction on October 22, 2020 (U.S. time). At the second quarterend, the Company determined the closing of the transaction to be highly probable, and therefore classified Brightstar’s
net income or loss in the Consolidated Statement of Income for the period as “net income from discontinued operations.” Brightstar’s income or loss for the same period of the previous fiscal year has also been restated retrospectively
as “net income from discontinued operations.”
1 As part of consideration for the transaction, the Company has received a 25% stake (fully diluted basis) in a subsidiary of Brightstar
Capital Partners, which acquired all of the shares of Brightstar.

3

SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 30, 2020

Changes in reportable segments
New establishment of the Investment Business of Holding Companies segment
In light of the greater importance of investment activities to the Company’s overall consolidated financial results, asmentioned above, the Investment Business of Holding Companies segment was newly established in the first quarter.
See “OVERVIEW” under “(a) Investment Business of Holding Companies Segment” in “b. Results by Segment” in“(1) Overview of Results of Operations” on page 18 for the overview of the segment.
Removal of Brightstar segment
Following the classification of Brightstar in the disposal group classified as held for sale, Brightstar has been removed
from the reportable segments from the second quarter.
As of the second quarter-end, the Company has four reportable segments: Investment Business of Holding Companies,
SVF1 and Other SBIA-Managed Funds, SoftBank, and Arm.

4

SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 30, 2020

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

1. Progress on sale or monetization of ¥4.5 trillion program Completion of sale or monetization of assets: The Company completed the partial sale of T-Mobile
shares, borrowings using T-Mobile shares, partial monetization of Alibaba shares through prepaid
forward contracts, and partial sale of SoftBank Corp. shares (including an additional sale). The amount ofsale or monetization of assets for the period totaled ¥5.6 trillion. The use of the proceeds will be decided
considering the Company’s financial balance.
 Share repurchase: Of a total ¥2 trillion authorized share repurchases, the Company had repurchased
shares of ¥540.1 billion as of September 30, 2020 and additional shares of ¥139.3 billion as of October
31, 2020.
 Debt reduction: The Company repurchased domestic unsecured corporate bonds with a total face value of¥167.6 billion, fully repaid $9.44 billion of borrowings made using Alibaba shares (margin loan), andrepaid early ¥300.0 billion of senior loans.
2. Agreement to sell all Arm shares to NVIDIA
 On September 13, 2020, the Company agreed to the sale of all Arm shares to NVIDIA with a transaction
valued up to $40.0 billion.
 Arm will continue to be classified under continuing operations in the Company’s financial statements
until the closing of the transaction is deemed highly probable.
3. Highlights of results
 Gain on investments of ¥2,033.3 billion- Gain on investments at Investment Business of Holding Companies of ¥579.6 billion: In connection
with the merger of Sprint and T-Mobile US, Inc. and the subsequent partial sale of T-Mobile shares, gain
relating to sales of T-Mobile shares of ¥421.8 billion, unrealized gain on valuation of investments of¥100.1 billion related to T-Mobile shares continued to be held by the Company, and derivative gain of¥177.0 billion resulting from an increase in the fair value of a contingent consideration2 were recorded.
Conversely, investment loss from investments in listed stocks and other instruments of ¥131.7 billion
was recorded.
- Gain on investments at SVF1 and SVF2 of ¥1,336.6 billion
・ At SVF1, realized gain (net) on sales of investments of ¥141.4 billion was recorded, in addition to
unrealized gain on valuation of ¥729.9 billion, as a result of a recovery in the public equity markets,
as well as increases in fair value of investments where exits have been decided or have new funding
rounds, or have benefitted from the accelerated adoption of digital services following the novel
coronavirus (COVID-19) pandemic.
・ At SVF2, unrealized gain on valuation of ¥537.2 billion was recorded, mainly due to the share priceincrease of KE Holdings Inc. following its listing.
 Income before income tax of ¥1,441.5 billion (increased ¥268.8 billion yoy)

- Finance cost of ¥153.8 billion*- Derivative loss (excluding gain (loss) on investments) of ¥761.6 billion*- Change in third-party interests in SVF1 of ¥(457.5) billion** recorded as a cost for the period

 Net income attributable to owners of the parent of ¥1,883.2 billion (increased ¥1,461.7 billion yoy)

- Net income from discontinued operations of ¥710.2 billion was recorded, primarily reflecting gain
relating to loss of control of Sprint.
4. Interim dividend payment- Interim dividend of ¥22 per share was decided, the same amount as in the previous fiscal year.
- The full-year dividend forecast remains undetermined.
2 The right to acquire certain T-Mobile shares for no additional consideration if certain conditions are met, which was received as partof consideration for the merger of Sprint and T-Mobile US, Inc.

5

SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 30, 2020

PROGRAM TO SELL OR MONETIZE ¥4.5 TRILLION OF ASSETS (¥4.5 TRILLION PROGRAM)On March 23, 2020, SBG announced a program to sell or monetize ¥4.5 trillion of assets held. The funds obtained
from the sale and monetization will be used to repurchase up to ¥2 trillion of the Company’s common stock, with thebalance to be used for debt redemptions, bond buybacks, and to increase cash reserves (collectively, the “¥4.5 trillion
program”). The Company completed the sale or monetization of the target amount of ¥4.5 trillion of the assets as ofthe second quarter-end. For the period, the amount of sale or monetization of assets totaled ¥5.6 trillion. The use of
the proceeds from asset sales in excess of the target amount has yet to be determined. Going forward, the Company
will seek to make new investments for sustainable growth and return profits to shareholders, while maintaining its
sound financial structure. Meanwhile, the share repurchases of up to ¥2 trillion were originally intended to be executed over four quarters beginning March 23, 2020; however, in light of the uncertainty in market trends and otherfactors, it is possible that the repurchases may not be completed by the end of March 2021, as originally scheduled.
Given the current concern for future waves of COVID-19, SBG believes it needs to further enhance cash reserves.
SBG is investing the funds raised, until such cash reserves are used for the planned share repurchases and debt reductions, together with other surplus funds, in high-quality, highly liquid marketable securities and other instruments,
as well as holding the funds in cash and deposits, while being firmly committed to its existing financial policies on
LTV (loan-to-value, the ratio of liabilities to holding assets) and cash position. See “(a) Investment Business of Holding Companies Segment” under “b. Results by Segment” for details.
Sale or monetization of assets in the period(Trillions of yen)Amount of sale or monetization
April to June 2020
July to September 2020
1. Partial sale of T-Mobile shares and borrowings
using T-Mobile shares
2. Partial monetization of Alibaba shares throughprepaid forward contracts
3. Partial sale of SoftBank Corp. shares
Total

Total

1.9

0.5

2.4

1.5
0.3

0.2
1.2

1.7
1.5

3.7

1.9

5.6

Note: Transactions completed by June 30, 2020 were converted at ¥107.74 to the U.S. dollar, and transactions completed by September
30, 2020 were converted at ¥105.80 to the U.S. dollar.

1. Completion of the merger of Sprint and T-Mobile US, Inc. and partial sale of T-Mobile shares, etc.
a. Completion of the merger of Sprint and T-Mobile US, Inc.
The merger of Sprint, which had been a U.S. subsidiary of the Company, and T-Mobile US, Inc. in an all-stocktransaction (the “Merger”) was completed on April 1, 2020. As consideration for the Merger, the Company received
304,606,049 T-Mobile shares and the right to acquire 48,751,557 T-Mobile shares for no additional consideration if
certain conditions are met (the “Contingent Consideration”). As of the same date, Sprint ceased to be a subsidiary of
the Company, and the combined new company, T-Mobile, became an equity method associate of the Company with
24.7% shareholding. See “(1) Sprint” under “3. Discontinued operations” in “(6) Notes to Condensed Interim Consolidated Financial Statements” in “3. Condensed Interim Consolidated Financial Statements and Primary Notes” fordetails.

6

SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 30, 2020

b. Partial sale of T-Mobile shares
Subsequently, the Company, through its subsidiary, sold 173,564,426 shares on June 26, 2020 ((a) and (b) in “Detailsof the Partial Sale” below), 5,000,000 shares on July 16, 2020 ((c) below), and 19,750,000 shares on August 3, 2020((d) below) (the “Partial Sale”) of the Company’s 304,606,049 shares of common stock of T-Mobile. T-Mobile disposed of the shares purchased from the Company’s subsidiary through a public offering in the United States, a private
placement through a trust issuing cash mandatory exchangeable trust securities, a sale to T-Mobile Board Director
Marcelo Claure (Board Director, Executive Vice President & COO of SBG), and a rights offering, with the proceeds
being transferred to the Company’s subsidiary.
As a result of the decrease in voting rights following the sale of shares on June 26, 2020, the Company lost its
significant influence over T-Mobile and, on the same date, T-Mobile was removed as an equity method associate of
the Company.
Details of the Partial Sale
Transaction(a) Public offering in the U.S. by T-Mobile(b) Private placement through a trust by T-Mobile(c) Sale by T-Mobile to T-Mobile Board Director Marcelo Claure(d) Rights offering by T-Mobile

Number ofshares soldTotal sale value(shares)(Millions of U.S. dollars)

154,147,026
19,417,400
5,000,000
19,750,000

15,877
1,667
515
2,034

In addition, Deutsche Telekom AG (“Deutsche Telekom”) received call options for 101,491,623 T-Mobile sharescontinued to be held by the Company after the Partial Sale (the “Deutsche Telekom Call Options”).3(i) For a call option over 44,905,479 shares out of the 101,491,623 shares, the strike price is $103.00 per share.
Deutsche Telekom can exercise this option at any time after the option grant date.
(ii) For a call option over 56,586,144 shares out of the 101,491,623 shares, the strike price is equal to the average ofthe daily volume-weighted average prices of the shares of T-Mobile common stock for each of the 20 trading days
immediately prior to the date of exercise. Deutsche Telekom can exercise this option after the exercise of theoption (i) above or after October 2, 2020.

3 The Deutsche Telekom Call Options expire on June 22, 2024, unless certain events occur that trigger an earlier expiration date.

7

SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 30, 2020

Number of T-Mobile shares held by the Company before and after the Partial Sale(a) Number of shares held before the Partial Sale

304,606,049(b) Number of shares sold through the Partial Sale

198,314,426(c) Number of shares held after the Partial Sale ((a) – (b))

106,291,623(d) Number of shares subject to the Deutsche Telekom Call Options

101,491,623(e) Number of shares held after the Deutsche Telekom Call Options are exercised ((c) – (d))

4,800,000(f) Number of shares that can be acquired through the Contingent Consideration

48,751,557(g) Number of shares held if the shares are acquired through the Contingent Consideration ((e) + (f))

53,551,557

c. Borrowings using T-Mobile shares
On July 30, 2020, SBG’s wholly owned subsidiary borrowed $4.38 billion using its T-Mobile shares pledged ascollateral (margin loan). Because SBG has, as an exception, guaranteed a portion of the margin loan, $2.3 billion isconsidered as the amount of assets monetized under the ¥4.5 trillion program (after deducting the $2.08 billion cap
on the guaranteed obligations). As a precondition for SBG to fulfill its guarantee obligations, the lenders are obligatedto first recover the amount to the maximum extent possible from Alibaba shares that have been pledged as collateral
for the margin loan.
2. Partial monetization of Alibaba shares through prepaid forward contracts
From April to August 2020, SBG’s wholly owned subsidiaries, West Raptor Holdings 2, LLC, Skybridge LLC, Skylark 2020 Holdings Limited, Scout 2020 Holdings Limited, and Tigress 2020 Holdings Limited entered into several
prepaid forward contracts using Alibaba shares with financial institutions. The Company procured an aggregate
amount of $15.4 billion. Alibaba remains an equity method associate of the Company following these transactions.
3. Partial sale of SoftBank Corp. shares
In May and September 2020, SBG sold a total of 1,268,061,400 shares of common stock of its subsidiary SoftBank
Corp. out of the 3,182,919,470 shares held through SoftBank Group Japan Corporation and received a total of ¥1.5
trillion, broken down as follows.
a. May 2020: 240,000,000 shares (shareholding ratio: 5.0%) sold for ¥310.2 billion
b. September 2020: 1,028,061,400 shares (shareholding ratio: 21.7%) sold for ¥1.2 trillion
SoftBank Corp. continues to be a subsidiary of the Company following these sales and its strategic importance to the
SoftBank Group remains unchanged. Considering its importance, the Company and SoftBank Group Japan Corporation have no intention of selling additional SoftBank Corp. shares. They intend to maintain their holding of the remaining shares held for the medium to long term.
Since SoftBank Corp. continues to be a subsidiary of SBG following these sales, the amounts equivalent to the after-tax gain on the sales were recorded as capital surplus in the Condensed Interim Consolidated Statement of Financial Position. In addition, a credit of income taxes (profit) was recorded, mainly due to the determination that

8SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 30, 2020

the transactions have increased the probability of generating taxable income at SoftBank Group Japan Corporationthat is available for the use of loss carryforwards, to which deferred tax assets had not been recognized.
Share repurchases based on the ¥4.5 trillion program
As of October 31, 2020

Date of Board
resolution

Total number of shares
to be repurchased

Total amount of repurchase

Repurchase period

May 15, 2020

81,940,400(Repurchased)
Maximum of 115 million(Repurchased 26 million to date)¥500 billion(Repurchased)
Maximum of ¥500 billion(Repurchased ¥179.4 billion
to date)Maximum of ¥1 trillion

From June 17, 2020 toAugust 3, 2020
From June 26, 2020 toMarch 31, 2021

June 25, 2020

July 30, 2020

Maximum of 240 million(Reference: Status of share repurchase resolved before the ¥4.5 trillion program)March 13, 2020
107,679,300¥500 billion(Repurchased)(Repurchased)

From July 31, 2020 toJuly 30, 2021

From March 16, 2020 toJune 15, 2020

Reduction of debt based on the ¥4.5 trillion program
As part of the ¥4.5 trillion program, the Company implemented the following debt reductions as of the second quarterend.
a. Repurchase of domestic unsecured corporate bonds
On July 22, 2020, SBG completed the repurchase of domestic unsecured corporate bonds with a total face value of¥167.6 billion.
b. Repayment of margin loan made using Alibaba shares
In July 2020, Skywalk Finance GK, a wholly owned subsidiary of the Company, fully repaid $9.44 billion in borrowings made using Alibaba shares (margin loan).
c. Repayment of senior loan
In September 2020, SBG conducted an early repayment of a senior loan with an aggregate face value of ¥300.0
billion.

9SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 30, 2020

SALE OF ALL SHARES IN ARM
On September 13, 2020 (U.S. time), SoftBank Group Capital Limited (“SBGC”), a wholly owned subsidiary of theCompany, and SVF1 entered into a Share Purchase Agreement (the “Purchase Agreement”) with NVIDIA Corporation (“NVIDIA”), a U.S.-based semiconductor manufacturer, whereby the Company will sell all of the shares in its
wholly owned subsidiary Arm held by SBGC and SVF1 to NVIDIA in a transaction valued up to $40 billion (approximately ¥4.2 trillion) (the “Transaction”). The Transaction is subject to regulatory approvals (including those of
the U.K., China, the European Union, and the U.S.) and other closing conditions. The Transaction is expected to takeapproximately 18 months to close following the execution of the Purchase Agreement. Arm’s Internet-of-Things
Services Group (ISG) business will be carved out from Arm prior to the closing of the Transaction. Accordingly, theISG business is not within the scope of the Transaction.
Upon completion of the Transaction, Arm will cease to be a subsidiary of the Company and will no longer be
consolidated into the Company’s financial results; however, Arm will continue to be classified under continuing
operations in the Company’s consolidated financial statements until the closing of the Transaction is deemed highly
probable. Upon closing of the Transaction, SBGC and SVF1 expect to receive in the aggregate approximately 6.78.1% of outstanding NVIDIA shares (excluding treasury shares), depending on the final amount of the earn-out, if
any (as discussed below). NVIDIA is not expected to become a subsidiary or an associate of the Company following
the completion of the Transaction.
A breakdown of the transaction value is presented below.
(Billions of U.S. dollars)
Transaction value
Consideration for the Company(1) Cash

12.0Time of receipt(a)

2.0 Received on September 13, 2020 ($0.75 billion of which was received by Arm as consideration for a license agreement)(b) 10.0 Upon closing(2) NVIDIA shares

21.5

Upon closing(44.37 million shares)(3) Earn-out (cash or NVIDIA shares)(or 10.32 million shares)

Upon closing; subject to satisfaction of specific financial performance targets of Arm

1.5

Upon closing; to be received by Arm employ-

Up to 5.0

(4) NVIDIA share compensation for
Arm employees

ees

Total
Up to 40.0
Notes:
1. The consideration described in (1) and (2) and, if any, (3) will be allocated to SBGC and SVF1 in accordance with their respective
ownership ratios of Arm shares (75.01% to SBGC and 24.99% to SVF1). The proceeds received by SVF1 will be further allocated to
SVF1’s limited partners, including the Company, based on a designated waterfall.
2. Transaction value of (2) and (3) is calculated based on NVIDIA shares with a price of $484.6007 per share (the average of the daily
closing prices of NVIDIA common stock for the 30 consecutive trading days ended September 10, 2020, rounded up to four decimal
points).

(1) $12.0 billion in cash(a) $2.0 billion
Upon the execution of the Purchase Agreement on September 13, 2020, SBGC and Arm received cash totaling

10SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 30, 2020

$2.0 billion. Of this amount, $1.25 billion was received as a deposit for part of the consideration in the Transaction (refundable to NVIDIA subject to certain conditions until the closing of the Transaction, after which suchamount will become non-refundable) and $0.75 billion was received by Arm as consideration for a license agreement that Arm and NVIDIA entered into concurrently with the execution of the Purchase Agreement.
(b) $10.0 billion
Upon the closing of the Transaction, SBGC and SVF1 will receive cash totaling $10.0 billion.
(2) $21.5 billion in NVIDIA shares (44.37 million shares)
Upon the closing of the Transaction, SBGC and SVF1 will receive $21.5 billion in NVIDIA common stock. The
total number of shares of NVIDIA common stock to be received is 44,366,423 shares, which was determined basedon a price of $484.6007 per share (the average of the daily closing prices of NVIDIA common stock for the 30
consecutive trading days ended September 10, 2020, rounded up to four decimal points). Of the $21.5 billion in
NVIDIA common stock, $1.0 billion (representing 2,063,554 shares) will be subject to escrow in order to satisfy
certain indemnification obligations of SBGC and SVF1 as set out in the Purchase Agreement.
The shares received will be recorded at their fair value at the closing of the Transaction as financial assets at
FVTPL, and thereafter changes in their fair value will be recognized as net income or loss at the end of each quarter.
(3) Earn-out up to $5.0 billion (cash or 10.32 million NVIDIA shares)
An earn-out of up to $5.0 billion in cash or up to 10,317,772 shares of NVIDIA common stock (based on a price of$484.6007 per share, being the average of the daily closing prices of NVIDIA common stock for the 30 consecutive
trading days ended September 10, 2020 (rounded up to four decimal points)) is payable to SBGC and SVF1 subject
to satisfaction of certain financial performance targets for each of revenue and EBITDA of Arm (in each case subject
to certain adjustments and excluding any amounts attributable to the ISG business) during the fiscal year ending
March 31, 2022 as set out in the Purchase Agreement. If Arm’s financial performance exceeds the agreed floors but
does not meet such targets, the earn-out will be prorated. If Arm’s financial performance does not meet such floors,
the earn-out will not be payable.
If SBGC and SVF1 elect to receive the earn-out in the form of NVIDIA shares, the fair value of those shares will
be recorded as financial assets at FVTPL upon the closing of the Transaction, and thereafter changes in their fairvalue will be recognized as net income or loss at the end of each quarter.
(4) NVIDIA stock awards representing $1.5 billion to be granted to Arm employees
Upon the closing of the Transaction, Arm employees will receive $1.5 billion in NVIDIA stock awards fromNVIDIA.
Since Arm is a subsidiary of the Company, unrealized valuation gain and loss associated with the change in valuation
on SVF1’s holding of Arm shares is recorded under segment income as “gain (loss) on investments at SVF1 andSVF2 (unrealized valuation gain (loss) recorded for the fiscal year),” but is eliminated in consolidation, and is notincluded in “gain (loss) on investments at SVF1 and SVF2” in the Condensed Interim Consolidated Statement of
Income.

11

SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 30, 2020

MAJOR IMPACT OF THE MERGER BETWEEN SPRINT AND T-MOBILE US, INC. AND THE PARTIAL SALE OF T-MOBILE SHARES ON THE CONDENSED INTERIM CONSOLIDATED FINANCIAL
STATEMENTS FOR THE PERIOD
Impact of the merger of Sprint and T-Mobile US, Inc.
a. Impact on the Condensed Interim Consolidated Statement of Income
A gain relating to loss of control of Sprint of ¥721.4 billion was recorded under “net income from discontinued
operations.”b. Impact on the Condensed Interim Consolidated Statement of Financial Position
Assets· The fair value of T-Mobile shares, which were received as consideration for the Merger, of ¥2.7 trillion was recorded
under “investments accounted for using the equity method” (as a result of the partial sale of T-Mobile shares
mentioned below, the T-Mobile shares continued to be held by the Company were reclassified to “investment
securities” at fair value).
· The Contingent Consideration, which was received as consideration for the Merger, of ¥373.4 billion was recorded
under “derivative financial assets.” An increase in the fair value of ¥177.0 billion was recognized as of the second
quarter-end, after the fair value of ¥196.3 billion was recorded at the time of the Merger (this increase was recorded
as derivative gain under “gain on investments at Investment Business of Holding Companies”).
Impact of the partial sale of T-Mobile sharesa. Impact on the Condensed Interim Consolidated Statement of Income
Gain (loss) on investments
Gain relating to sales of T-Mobile shares of ¥421.8 billion was recorded under “gain (loss) on investments at
Investment Business of Holding Companies.” This consisted of a gain of ¥280.3 billion on sales of shares ofassociates, a gain of ¥296.0 billion on the revaluation of T-Mobile shares continued to be held by the Company, aderivative loss relating to the Deutsche Telekom Call Options of ¥154.5 billion, a realized loss of ¥3.1 billion on thesale of T-Mobile shares, and a gain of ¥3.0 billion on derecognition of derivative liabilities.
b. Impact on the Condensed Interim Consolidated Statement of Financial Position
Assets
T-Mobile shares continued to be held by the Company were recorded under “investment securities” at fair value (thesecond quarter-end: ¥1.3 trillion). T-Mobile shares continued to be held are measured at fair value at each quarterend, with changes recorded under “gain (loss) on investments at Investment Business of Holding Companies” in theConsolidated Statement of Income. Unrealized gain on valuation of investments of ¥100.1 billion related to T-Mobile
shares was recorded in the period from June 26, 2020 to the second quarter-end.
Liabilities
The Deutsche Telekom Call Options were recorded under “derivative financial liabilities” at fair value (the second
quarter-end: ¥178.7 billion). The Deutsche Telekom Call Options are measured at fair value at each quarter-end, with

12SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 30, 2020changes recorded as derivative gain or loss under “gain (loss) on investments at Investment Business of Holding
Companies” in the Consolidated Statement of Income.
c. Impact on the Condensed Interim Consolidated Statement of Cash Flows
Cash flows from investing activities
Proceeds from the sale of T-Mobile shares of ¥2.1 trillion were recorded under “proceeds from sales/redemption of
investments.”
MAJOR IMPACT FROM THE COVID-19 PANDEMIC ON MARKETS AND BUSINESSES OF THE COMPANY
There is still no sign of an end to the COVID-19 pandemic. Data collected by Johns Hopkins University in the U.S.
indicate that, as of November 1, 2020 (Japan time), the total number of COVID-19 cases surpassed 46.07 million andthe number of deaths surpassed 1.19 million worldwide. The number of infections is increasing again, especially inEurope and the U.S., and restrictions on operations for restaurants and social outings are being widely enforced again.
Global stock markets remain volatile due to concerns about the slowdown in economic activity.
SVF1 recorded unrealized gain on valuation of ¥729,852 million4 in the period, supported by a recovery in thefair value of listed portfolio companies due to a rebound in the public equity markets, as well as increases in the fairvalue of unlisted portfolio companies where exits have been decided or have new funding rounds, or are benefitingfrom the accelerated adoption of digital services during the COVID-19 crisis. The impact of COVID-19 varies greatly
depending on the sector. Businesses in sectors such as e-commerce, online education, entertainment, enterprise software, food and grocery delivery, and health tech have benefited from the accelerated adoption of digital services,while companies in sectors such as travel and hospitality are recovering at a slower pace. The pandemic is expected
to continue to affect each portfolio company differently in the future.

4 Since Arm is a subsidiary of the Company, investment gain and loss related to Arm shares recorded in the SVF1 and Other SBIAManaged Funds segment is excluded.

13

SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 30, 2020a. Consolidated Results of Operations(Millions of yen)Six months ended September 30
2019

2020

ChangeChange %Net sales

2,539,719

2,630,531

90,812

3.6%

Gross profit

1,314,754

1,419,812

105,058

8.0%

729,417579,614(149,803)(20.5%) B(529,328)

1,336,638

1,865,966-

15,877

117,059

101,182

637.2%

215,966

2,033,311

1,817,345

841.5%

Selling, general and administrative expenses(915,426)(1,011,301)(95,875)

10.5%

Finance cost(140,572)(153,808)(13,236)

9.4%

Income on equity method investments
Derivative gain (loss) (excluding gain (loss) on
investments)

453,983

200,830(253,153)(55.8%) E

7,714(761,557)(769,271)-

Change in third-party interests in SVF1

180,775(457,537)(638,312)-

Other gain (loss)

55,479171,722

116,243209.5%

1,172,673

1,441,472

268,79922.9%(591,473)(272,282)

319,191(54.0%) G

581,200

1,169,190

587,990101.2%Net income from discontinued operations(49,015)

710,187

759,202-

Net income

532,185

1,879,377

1,347,192

253.1%Net income attributable to owners of the parent

421,552

1,883,211

1,461,659

346.7%

Total comprehensive income
Comprehensive income attributable to owners of theparent(47,718)

1,562,319

1,610,037-(137,296)

1,563,669

1,700,965-

Continuing operations

Gain on investments
Gain on investments at Investment Business of
Holding Companies
Gain on investments at SVF1 and SVF2
Gain on other investments
Total gain on investments

Income before income tax
Income taxes
Net income from continuing operations

A

C

D

F

Discontinued operations
H

Note: For the fiscal year, continuing operations and discontinued operations have been presented separately. To reflect this change inpresentation, figures for the same period of the previous fiscal year have been restated and presented in the same manner.

14SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 30, 2020

The following is an overview of the main and noteworthy components.
A Net Sales

Net sales increased in the SoftBank and Arm segments.
B Gain on Investments at Investment Business of Holding Companies

Gain relating to sales of T-Mobile shares of ¥421,755 million was recorded, while investment loss of ¥131,677
million from investment in listed stocks and other instruments was also recorded. In the same period of theprevious fiscal year, a gain of ¥1,218,527 million relating to settlement of prepaid forward contracts using
Alibaba shares was recorded. See “(a) Investment Business of Holding Companies Segment” under “b. Resultsby Segment” for details.
C Gain on Investments at SVF1 and SVF2

Realized gain on sales of investments of ¥141,385 million was recorded as a result of the sale by SVF1 of a
portion of its shares in four portfolio companies and all shares of six portfolio companies (including share exchanges with the shares of affiliated portfolio companies). In addition, unrealized gain on valuation of ¥729,852
million4 (net) from investments held at the second quarter-end was recorded. SVF2 recorded unrealized gain on
valuation of ¥537,220 million (net) after reflecting an increase in share price of KE Holdings Inc. following its
listing on August 13, 2020. See “(b) SVF1 and Other SBIA-Managed Funds Segment” under “b. Results by
Segment” for details.

Primarily as a result of B and C, total gain on investments was ¥2,033,311 million, an increase of ¥1,817,345
million (841.5%) year on year.
D Finance Cost

Interest expenses increased ¥10,998 million in the Investment Business of Holding Companies segment and ¥4,345
million in the SoftBank segment.
E Income on Equity Method Investments

Income on equity method investments related to Alibaba was ¥167,769 million5, a decrease of ¥284,734 million(62.9%) year on year, which was boosted by ¥277,175 million in the same period of the previous fiscal year as aresult of Alibaba acquiring newly issued shares (33% equity stake) of Ant Small and Micro Financial Services
Group Co., Ltd. (currently Ant Group Co., Ltd., “Ant Financial”) using consideration from the transfer of certain
intellectual property rights and assets held by Alibaba to Ant Financial and its subsidiaries.

5 The Company applies the equity method to Alibaba’s consolidated financial statements for a reporting period staggered by threemonths in the past because it is impractical to align reporting periods with Alibaba due to factors such as contracts with the company.
Necessary adjustments have been made to reflect important transactions and events announced by Alibaba during the staggered threemonth period.

15

SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 30, 2020

F Derivative Gain (Loss) (Excluding Gain (Loss) on Investments)

Derivative loss of ¥766,380 million was recorded in connection with prepaid forward contracts using Alibaba shares
entered into in November 2019 and from April to August 2020.
Primarily as a result of A through F, income before income tax was ¥1,441,472 million, an increase of ¥268,799
million (22.9%) year on year.
G Income Taxes

Income taxes related to SoftBank Corp. and Yahoo Japan Corporation were recorded, as well as tax expenses related
to the sale of T-Mobile shares. In addition, a credit of income taxes of ¥256,060 million (profit) was recorded mainly
due to the determination that the partial sale of SoftBank Corp. shares (see “3. Partial sale of SoftBank Corp. shares”
on page 8) has increased the probability of generating taxable income at SoftBank Group Japan Corporation that isavailable for the use of loss carryforwards, to which deferred tax assets had not been recognized.
H Net Income from Discontinued Operations

The Company recorded a gain of ¥721,404 million relating to loss of control of Sprint in connection with Sprintceasing to be a subsidiary of the Company, following the completion of the merger between Sprint and T-Mobile
US, Inc.
Primarily as a result of A through H, net income attributable to owners of the parent was ¥1,883,211 million,
an increase of ¥1,461,659 million (346.7%) year on year.

For basic information used to calculate income (loss) on equity method investments related to Alibaba, see the Data Sheets in“Materials” under “Earnings Results Briefing” on the Company’s website at https://group.softbank/en/ir/presentations/.

16SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 30, 2020

b. Results by Segment
The Company’s reportable segments are the components of its business activities for which decisions on resource
allocation and assessment of performance are made. As of the second quarter-end, there are four reportable segments: Investment Business of Holding Companies, SVF1 and Other SBIA-Managed Funds, SoftBank, and Arm.
For details of the changes in presentation of the Consolidated Statement of Income and the reportable segments inthe fiscal year, see “CHANGES IN PRESENTATION OF CONSOLIDATED STATEMENT OF INCOME AND
REPORTABLE SEGMENTS.” Along with no longer presenting “operating income” in the Consolidated Statementof Income, the Company has revised segment income in each reportable segment to “income before income tax.”
The following is a summary of the reportable segments.
Segments

Main businesses

Core companies

Reportable segments
Investment Business · Investment activities by SBG and its subsidiaries
of Holding Companies

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

SVF1 and Other
SBIA-Managed
Funds· Investment activities by SVF1 and SVF2

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

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

SoftBank Corp.
Z Holdings Corporation

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

Arm Limited· Smartphone payment business

PayPay Corporation· Alternative investment management business

Fortress Investment Group LLC

Other· Investment fund business in Latin America· Fukuoka SoftBank HAWKS-related businesses

17

Fukuoka SoftBank HAWKS Corp.

SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 30, 2020(a) Investment Business of Holding Companies Segment
1. Recorded gain relating to sales of T-Mobile shares of ¥421.8 billion
Recorded a gain of ¥280.3 billion on sales of shares of associates, a gain of ¥296.0 billion on therevaluation of shares continued to be held by the Company, and a derivative loss of ¥154.5 billion.
2. Completed the sale and monetization of assets for the ¥4.5 trillion program
3. Recorded investment loss of ¥131.7 billion from investment in listed stocks and other instruments(total investment gain and loss of SBG and SB Northstar)
OVERVIEWThis segment is led by SBG, which conducts investment activities, either directly or through subsidiaries, as a
strategic investment holding company. The segment consists of SBG, SBGC, SoftBank Group Japan Corporation(“SBGJ”), asset management subsidiary SB Northstar, and certain other subsidiaries engaged in investment andfinancing activities. Gain and loss on investments at Investment Business of Holding Companies comprises gain
and loss on investments held by SBG either directly or through its subsidiaries, excluding gain and loss on investments pertaining to subsidiaries’ shares, such as dividend income from subsidiaries or impairment loss relating to
subsidiaries’ shares.
The companies comprising this segment hold approximately 120 portfolio companies, including Alibaba, TMobile, and The We Company (“WeWork”),*1 as well as investees of SB Northstar. They are either equity method
associates (such as Alibaba) or investments classified as financial assets at FVTPL. With regard to the financial
results of portfolio companies classified as equity method associates, income and loss are recorded as “income(loss) on equity method investments” in proportion to equity interest. Investments classified as financial assets at
FVTPL are measured at fair value every quarter, and any change in fair value is recorded in the Consolidated
Statement of Income as “gain (loss) on investments.”
Note:
1. Gain and loss on investments related to WeWork shares held by SVF1 are included in the SVF1 and Other SBIA-Managed Funds
segment.

Investment in listed stocks and other instruments by the asset management subsidiaries
The Company has been investing in highly liquid listed stocks from the first quarter, in order to diversify assets
held by the Company and manage surplus funds. This has been done while being firmly committed to its statedfinancial policies on its loan-to-value (LTV) ratio and cash position. These investments were made by SBG in thefirst quarter, but from the second quarter, asset management subsidiary SB Northstar has been acquiring and selling
listed stocks, and engaging in derivative and credit transactions related to listed stocks. The scale of its investments
in listed stocks and other instruments fluctuates depending upon SBG’s funding needs, cash on hand, and the statusof the assets held by SBG.
The interest in SB Northstar is indirectly held 67% by SBG and 33% by SBG’s chairman and CEO Masayoshi
Son. Masayoshi Son’s interest is deducted from gain and loss on investments at SB Northstar as a non-controllinginterest; therefore, 67% of the gain and loss on investments impacts net income attributable to owners of the parent.
Furthermore, if, at the end of the fund life (12 years + 2-year extension), SB Northstar has any unfunded repayment
obligations to SBG, Masayoshi Son will pay his pro rata share of any such unfunded obligations based upon his
relative ownership percentage of SB Northstar.

18

SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 30, 2020

FINANCIAL RESULTS(Millions of yen)Six months ended September 30
2019

2020

Change729,417579,614(149,803)(20.5%) A-

421,755

421,755-

1,218,527-(1,218,527)--(8,060)(8,060)--(95,082)(95,082)--(292,346)(292,346)-

27,181

163,621

136,440502.0%

Unrealized gain (loss) on valuation of investments(399,901)

234,573

634,474-

Derivative gain (loss) on investments(119,018)

151,690

270,708

-

2,628

3,463

835

31.8%

Selling, general and administrative expenses(34,251)(52,922)(18,671)

54.5%

Finance cost

(97,177)(108,175)(10,998)

11.3%

Income on equity method investments
Derivative gain (loss)(excluding gain (loss) on investments)

453,697

194,607(259,090)(57.1%) C

7,379(762,417)(769,796)-

D

Other gain (loss)

36,719174,641

137,922375.6%

E

1,095,784

25,348(1,070,436)(97.7%)

Gain on investments
Gain relating to sales of T-Mobile shares
Gain relating to settlement of prepaid forward
contracts using Alibaba shares
Realized loss on sales of investments at asset management subsidiaries
Unrealized loss on valuation of investments at asset
management subsidiaries
Derivative loss on investments at asset management
subsidiaries
Realized gain on sales of investments

Other

Segment income (income before income tax)

Change %B

A Gain on investments: ¥579,614 million· Gain relating to sales of T-Mobile shares of ¥421,755 million was recorded. This gain resulted from (1) a gain of¥280,341 million on sales of shares of associates in connection with the sale of 173,564,426 shares of the304,606,049 T-Mobile shares held on June 26, 2020; (2) a gain of ¥296,013 million on the revaluation of TMobile shares continued to be held by the Company following the exclusion of T-Mobile from the Company’s
equity method associates; (3) a derivative loss of ¥154,491 million relating to the call options received by
Deutsche Telekom for 101,491,623 T-Mobile shares held by the Company; and (4) a realized loss on sale ofinvestments of ¥3,122 million from the sales of 5,000,000 T-Mobile shares held by the Company on July 16,
2020 and a further 19,750,000 shares on August 3, 2020, as well as a derivative gain of ¥3,014 million following
the derecognition of derivative liabilities.
· Realized loss on sales of investments at asset management subsidiaries of ¥8,060 million and unrealized loss on
valuation of investments at asset management subsidiaries of ¥95,082 million were recorded. This was due toinvestments in listed stocks by SB Northstar.
· Derivative loss on investments at asset management subsidiaries of ¥292,346 million was recorded. This wasdue to recording losses related to call options on listed stocks and short stock index futures contracts at SB
Northstar.
· Realized gain of ¥163,621 million on sales of investments and unrealized gain on valuation of investments of¥234,573 million was recorded. The former was mainly due to recording realized gain of ¥167,238 million on

19

SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 30, 2020

investments SBG made in listed stocks. The latter was due to recording unrealized gain on valuation of ¥96,573
million on investments SBG made in listed stocks, in addition to a valuation gain of ¥100,080 million on investment in T-Mobile shares recognized during the period from June 26 to September 30, 2020.
· Derivative gain on investments of ¥151,690 million was recorded. This was mainly due to the recording of a gainof ¥177,037 million as an increase in the fair value of the right to purchase T-Mobile shares for no additional
consideration if certain conditions are met, which was received as consideration for the merger between Sprint
and T-Mobile US, Inc.
B

Finance cost: ¥108,175 million (increased ¥10,998 million year on year)· Interest expenses at SBG6 increased ¥10,736 million to ¥107,841 million.
C

Income on equity method investments: ¥194,607 million (decreased ¥259,090 million year on year)· Income on equity method investments related to Alibaba was ¥167,769 million, a decrease of ¥284,734 million(62.9%) year on year, which was boosted by ¥277,175 million in the same period of the previous fiscal year as aresult of Alibaba acquiring newly issued shares (33% equity stake) of Ant Financial using consideration from thetransfer of certain intellectual property rights and assets held by Alibaba to Ant Financial and its subsidiaries.
There was also an impact from the recording of investment loss on investments classified as financial assets at
FVTPL for the three-month period ended March 31, 2020, following the fall in stock markets due to the COVID19 pandemic.
· Income on equity method investments of ¥24,736 million related to T-Mobile for the period from April 1 to June25, 2020 was recorded, which was not recorded for the same period of the previous fiscal year.
D Derivative loss (excluding gain (loss) on investments): ¥762,417 million· Derivative loss of ¥766,380 million was recorded in connection with the prepaid forward contracts using Alibaba
shares entered into in November 2019 and from April to August 2020.
E Other gain: ¥174,641 million· In the three-month period ended March 31, 2020 (the fourth quarter of the previous fiscal year), the Company
recorded provisions for allowance for financial guarantee contract losses and loan commitment losses of ¥52,349
million and ¥90,210 million, respectively, in connection with a credit support by the Company for a letter ofcredit facility provided to WeWork by financial institutions and a purchase by the Company’s wholly owned
subsidiary of unsecured notes to be issued by WeWork; however, mainly due to the improvement in the credit
risk of WeWork, the Company reversed ¥21,466 million and ¥58,364 million, respectively.
¥4.5 TRILLION PROGRAM
See “PROGRAM TO SELL OR MONETIZE ¥4.5 TRILLION OF ASSETS (¥4.5 TRILLION PROGRAM)” on
page 6, for details of the sale and monetization of assets, share repurchases, and reduction of debt under the ¥4.5
trillion program.
6 The presentation of interest expenses at SBG includes interest expenses on interest-bearing debts of wholly owned subsidiaries conducting fund procurement Skywalk Finance GK, West Raptor Holdings, LLC, West Raptor Holdings 2, LLC, Skybridge LLC, Skylark
2020 Holdings Limited, Scout 2020 Holdings Limited, Tigress 2020 Holdings Limited, Moonlight Finance GK, and Delaware Project
6 L.L.C.

20

SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 30, 2020

INVESTMENT IN LISTED STOCKS AND OTHER INSTRUMENTS BY THE ASSET MANAGEMENT SUBSIDIARIESMain impact on the financial position and gain (loss) on investments
Investor

Investment
type

Account inCondensed Interim
Consolidated Statement of Financial Position

SBG

Actual stocks

Investment securities

Balance in Condensed
Interim Consolidated
Statement of Financial
Position (Parentheses
show liabilities)
Q2E
15,049SB Northstar

Actual stocks

Credit transactions

Derivatives

Long call option oflisted stocks
Short call optionof listed stocks
Short stock index
futures contracts

Investments fromasset management
subsidiaries
Securities pledged ascollateral (Other
financial assets)
Borrowed securities(Other financial
liabilities)
Derivative financial
assets in asset management subsidiaries

1,551,805

213,315

Account in Condensed
Interim Consolidated
Statement of Income

Realized gain on sales of investments
Unrealized gain on valuation of investments
Realized loss on sales of investments at asset management subsidiaries
Unrealized loss on valuationof investments at asset management subsidiaries(Millions of yen)
Gain (loss) recorded in Condensed Interim
Consolidated Statement of Income

Q1

Q2

Q1-Q2

64,470102,768

167,238

20,88075,69396,573-(8,060)(8,060)-(95,082)(95,082)-(292,346)(292,346)

85,350(217,027)(131,677)-

131,829

131,829

85,350(85,198)152(434,572)*1

496,637

Derivative financial
liabilities in asset
management subsidiaries(133,455)

Derivative loss on investments at asset management
subsidiaries(73,585)
Gain (loss) on investments
at Investment Business of
Holding Companies
Gain (loss) on investments
attributable to non-controlling interests*2

Notes:
1. Fair value of the securities borrowed for short credit transactions
2. 33% of the gain (loss) on investments at SB Northstar
3. Excludes impacts such as selling, general and administrative expenses and tax expenses

Gain (loss) on investments
attributable to owners of
the parent*3

21

SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 30, 2020

Status of assets
As of September 30, 2020a. Actual stocks(Millions of U.S. dollars)

Fair value as of September 30, 2020
Adobe Inc.
Alphabet Inc. Class A Common StockAlphabet Inc. Class C Capital Stock
Amazon.com, Inc.
Facebook, Inc.
Microsoft Corporation
Netflix, Inc.
PayPal Holdings, Inc.
Salesforce.com Inc
Taiwan Semiconductor Manufacturing Company Limited ADR
Zoom Video Communications, Inc.
OthersNVIDIA Corporation

685
1,221
206
6,331
2,222
370
1,024
249
69
256
1,801
2,251
142

Total

16,825

Note: NVIDIA Corporation shares held by SBG are included in the table above.

b. Derivatives(Millions of U.S. dollars)Long call option of listed stocks
Short call option of listed stocks
Short stock index futures contracts*1

Fair value as of September 30, 2020
4,694
(1,261)(696)

Notional Principal*2
72,072(47,564)(18,132)

2,737

6,376

Total
Notes:
1. Parentheses show liabilities
2. Parentheses show short positions

22

SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 30, 2020

MAIN INTEREST-BEARING DEBT IN THIS SEGMENT

Borrower

Type

SBG

Borrowings

Balance as of September 30, 2020
in Condensed Interim Consolidated
Statement of Financial Position¥946.5 billion

Corporate bonds¥4,780.4 billion

Commercial paper¥92.0 billion(Wholly owned subsidiaries conducting fund procurement*1)
West Raptor Holdings, LLC
Prepaid forward contracts using Alibaba
West Raptor Holdings 2, LLC
shares (forward contracts, floor conSkybridge LLC
tracts, collar contracts, and call spread)Skylark 2020 Holdings Limited¥2,124.6 billion

Scout 2020 Holdings Limited
Tigress 2020 Holdings Limited
Moonlight Finance GK

Borrowings using SoftBank Corp. shares¥498.0 billion

Delaware Project 6 L.L.C.

Borrowings using T-Mobile shares¥459.4 billion

SB Northstar

Borrowings¥364.3 billion

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

(Reference)
Cash and cash equivalents and undrawn commitment line of SBG on a stand-alone basis
As of September 30, 2020
Cash and cash equivalents¥2,121.2 billion-

Undrawn commitment line

23SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 30, 2020(b) SVF1 and Other SBIA-Managed Funds Segment
1. Gain on investment (net) was ¥1,411.6 billion. Segment income, after deducting change in thirdparty interests, was ¥914.0 billion.
 SVF1- Realized gain on sales of investments (net) of ¥141.4 billion: Sold a portion of its shares in four
portfolio companies, etc.
- Unrealized gain on valuation of investments (net) of ¥804.8 billion from investments held at thesecond quarter-end: Recorded ¥374.5 billion gain on investments in listed portfolio companies due toa recovery in the public equity markets, and ¥430.3 billion on investments in unlisted portfolio
companies driven by the fair value uplift of portfolio companies where exits have been decided orhave new funding rounds, or have benefited from the accelerated adoption of digital services
following the COVID-19 pandemic.
 SVF2- Unrealized gain on valuation of investments (net) of ¥537.2 billion: Recorded ¥536.6 billion gain due
to an increase in the share price of KE Holdings Inc. following its listing on August 13, 2020.
2. Progress of investment
 SVF1- Investment before exit: Held 83 investments as of the second quarter-end at cost totaling $75.0
billion, with the fair value amounting to $76.4 billion.
- Cumulative gross gain*1 since SVF1’s inception reached $7.4 billion, including cumulative realized
gain of $4.5 billion and cumulative derivative gain of $1.5 billion.
 SVF2- Held 13 investments as of the second quarter-end at cost totaling $2.6 billion, with the fair value
amounting to $7.6 billion.
Note:
1. Cumulative gross gain is before deducting third-party interests, tax, and expenses.

OVERVIEW
Segment results mainly include the results of the investment and operational activities of SoftBank Vision Fund 1(SVF1) and SoftBank Vision Fund 2 (SVF2). The funds are managed by SBIA, a wholly owned subsidiary of theCompany established in the U.K., which is authorized and regulated by the Financial Conduct Authority.
SVF1 aims to maximize returns from a medium- to long-term perspective, through large-scale investments inhigh-growth-potential companies leveraging AI, particularly in private companies valued at over $1 billion at thetime of investment, colloquially known as “unicorns.” The fund’s investment period ended on September 12, 2019.
The remaining undrawn capital is reserved for follow-on investments in existing portfolio companies (including
investments in joint ventures with them), fixed distributions, and operating expenses. In principle, the life of thefund is until November 20, 2029.
SVF2 launched in October 2019 with committed capital from SBG, aiming to facilitate the continued acceleration of the AI revolution through investment in market-leading, tech-enabled growth companies across vintage
years. As of November 9, 2020, the committed capital of SBG totaled $10.0 billion. SVF2 has yet to have an
external close.

24

SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 30, 2020

Impact of the COVID-19 pandemic
COVID-19 is having an uneven effect on SBIA’s portfolio companies. Businesses in sectors such as e-commerce,
online education, entertainment, enterprise software, food and grocery delivery, and health tech have benefited
from the accelerated adoption of digital services. Many SVF1 companies in these sectors have successfully raised
additional funding from new and existing investors at higher valuations. SBIA believes these new funding rounds
reflect the strong underlying growth of each company’s business. Conversely, companies in sectors such as travel
and hospitality are recovering at a slower pace.
As a result, in some industries, SBIA is working with its companies to capitalize on growth opportunities,
whereas in others, SBIA is guiding them towards a more cautious approach focused on optimizing cash reserves.
While the duration of COVID-19 is unpredictable, SBIA is committed to helping its portfolio companies endure
the pandemic and expects that many of its companies will emerge even stronger.
Outline of principal funds in the segment
As of September 30, 2020

SoftBank Vision Fund 1

SoftBank Vision Fund 2

Major limited partnership

SoftBank Vision Fund L.P.

SoftBank Vision Fund II-2 L.P.

Total committed capital

98.6

5.0
The Company: 5.0*2

General partner

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

Investment period

Ended on September 12, 2019

Minimum fund life

Until November 20, 2029 (in principle)(Billions of U.S. dollars)

SVF II GP (Jersey) Limited(The Company’s wholly owned overseas
subsidiary)(Investment period and minimum fundlife are not presented as they are subject
to change following the participation of
third-party investors.)

Notes:
1. The Company’s committed capital to SVF1 includes approximately $8.2 billion of an obligation satisfied by using Arm Limited
shares (all said shares have been contributed) and $5.0 billion earmarked for purposes of an incentive scheme related to SVF1.
2. In October 2020, SBG made additional capital commitment of $5.0 billion to SVF2. As a result, as of November 9, 2020, thecommitment of SBG to SVF2 totaled $10.0 billion.
For a complete list of SVF1 and SVF2’s portfolio companies, see the Data Sheets in “Materials” under “Earnings Results
Briefing” on the Company’s website at https://group.softbank/en/ir/presentations/.

25

SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 30, 2020

Capital deployment of SVF1
As of September 30, 2020
(Billions of U.S. dollars)Committed capital
Drawn capital

7

(A)

(B)

Return of capital (non-recallable)
Outstanding capital(C)(D) = (B) – (C)Remaining committed capital(E) = (A) - (B)Total

The Company

Third-party investors

98.6

33.1

65.5

83.9

28.4

55.5

7.4

0.9

6.5

76.5

27.5

49.0

14.7

4.7

10.0

Note: The Company’s committed capital to SVF1 includes approximately $8.2 billion of an obligation satisfied by using Arm Limited
shares (all said shares have been contributed) and $5.0 billion earmarked for purpose of an incentive scheme related to SVF1.

As of the second quarter-end, SBG has contributed $2.8 billion of its committed capital to SVF2.
FINANCIAL RESULTS(Millions of yen)Six months ended September 30
2019
2020

ChangeChange %(529,328)
34,805(573,720)(537,932)

1,411,567
141,385
1,260,592
1,342,001

1,940,895
106,580
1,834,312
1,879,933

306.2%-(35,788)
8,337
1,250
(43,004)(9,224)
180,775
747(400,034)(81,409)
4,623
1,091
3,876
(34,430)(6,228)(457,537)
617
913,989(45,621)(3,714)
1,091
2,626
8,574
2,996
(638,312)(130)
1,314,023(44.5%)(210.1%)(19.9%)(32.5%)(17.4%)-

Gain on investments at SVF1 and SVF2
Realized gain on sales of investments
Unrealized gain (loss) on valuation of investments
Change in valuation for the fiscal year
Reclassified to realized gain recorded in the pastfiscal year*1
Dividend income from investments
Derivative gain on investments
Effect of foreign exchange translation
Selling, general and administrative expenses
Finance cost
Change in third-party interests in SVF1
Other gain (loss)
Segment income (income before income tax)

Note:
1. Unrealized gain on valuation of investments recorded in prior fiscal years related to the investments exited in the fiscal year are
reclassified to “realized gain on sale of investments.”

During the period, SVF1 made follow-on investments totaling $1.70 billion in existing portfolio companies andtheir joint ventures,8 and sold a portion of its shares in four portfolio companies and all of its shares in six portfolio
companies8 for a total of $3.05 billion,9 of which the initial acquisition costs were $1.73 billion. SVF2 made newinvestments totaling $0.64 billion.
7 Drawn capital of SVF1 excludes the amount repaid to limited partners due to investment plan changes and other reasons after thecapital was drawn.
8 Includes share exchanges. During the first quarter, SVF1 exchanged all of its shares in two portfolio companies for shares in theiraffiliated companies, which are also existing portfolio companies. Such share exchanges are treated as exits from investments andacquisitions of new investments, with the sale price and acquisition cost being recorded in gross, respectively, and with the difference
between the acquisition cost of shares initially held and sale price (acquisition cost of the exchanged shares) being recorded as realized
gain and loss on the investments.
9 After deducting transaction fees, etc.

26

SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 30, 2020

Segment income
Gain on investments at SVF1 and SVF2: ¥1,411,567 million· SVF1- Realized gain on sales of investments of ¥141,385 million was recorded as a result of the sale by SVF1 of a
portion of its shares in four portfolio companies and all shares of six portfolio companies. 8- Unrealized gain on valuation of investments from 83 investments held by SVF1 at the second quarter-end
was ¥804,781 million ($7,563 million, net) (see “Portfolio of SVF1” below for a breakdown). Unrealized
valuation gain totaling $3,517 million on listed portfolio companies was recorded due to a rebound in theirshare prices primarily as a result of a recovery in the public equity markets. In addition, unrealized valuation
gain totaling $4,046 million was recorded on unlisted portfolio companies, as a result of increases in the fairvalue of investments where exits have been decided or have new funding rounds, as well as increases in thefair value of investments in online businesses such as e-commerce and food delivery, which have seen higher
customer engagement during the COVID-19 crisis.
· SVF2- Unrealized gain on valuation of investments was ¥537,220 million ($5,074 million, net). This was primarily
due to the recording of unrealized valuation gain of $5,068 million on investment in KE Holdings Inc., reflecting the increase in the share price following its listing on August 13, 2020. See “Portfolio of SVF2”
below for other details.
Change in third-party interests in SVF1: ¥(457,537) million
This indicates the sum of distributions to third-party investors in proportion to their interests in fixed distributions
and performance-based distributions, which are based on the gain and loss on investments at SVF1, net of management and performance fees payable to SBIA, and operating and other expenses of SVF1. See “(2) Third-party
interests in SVF1” under “5. SVF1 and other SBIA-managed funds business” in “(6) Notes to Condensed Interim
Consolidated Financial Statements” in “3. Condensed Interim Consolidated Financial Statements and Primary
Notes” for details.
As of the second quarter-end, SVF2 is only invested in by SBG and therefore has no third-party interests.

27

SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 30, 2020

Portfolio of SVF1
As of September 30, 2020
(Billions of U.S. dollars)(1) Investments before exit (investments held at the second quarter-end)
Number ofinvestments
Sectora Consumerb Enterprisec Fintechd Frontier Teche Health Techf Real Estate & Construction
g Transportation & Logistics
Total(Reference)
Listed companies*2
c OneConnectc ZhongAn Insurancee Guardant Healthe Ping An Good Doctor
e Relay Therapeutics
e Vir Biotechnology
g UberUnlisted companies
Total

14
7
11
9
9
9
24
83

Investment cost
A1
11.4
2.1
4.7
10.7
2.2
9.9
34.0
75.0

Fair value
A2
14.0
3.5
4.5
11.3
5.2
5.3
32.6
76.4

Cumulative
unrealized
valuation
gain (loss)*1
A3
2.6
1.4
(0.2)
0.6
3.0
(4.6)
(1.4)
1.4

8.8
0.1
0.3
0.2
0.0
0.3
0.2
7.7
66.2
75.0

12.0
0.1
0.2
1.5
0.1
1.2
0.8
8.1
64.4
76.4

3.2
(0.0)
(0.1)
1.3
0.1
0.9
0.6
0.4
(1.8)
1.4

3.5
0.0
0.1
0.6
0.0
0.9
0.0
1.9
4.1
7.6

Sale price
B2
2.4
9.8
12.2

Cumulative
realized gain/loss*3
B3
1.4
3.1
4.5

Realized gain
(loss) recordedin the fiscal year
Q1-Q2
1.0
0.3
1.3

Derivative cost
C1
0.0
0.0

Fair value/
settlement price
C2
1.5
1.5

Cumulative
derivative gain/loss
C3
1.5
1.5

Cumulative
investment cost
A1+B1+C1
82.7

Cumulative
investment
returnA2+B2+C2
90.1

Cumulative
gain/loss*3
A3+B3+C3
7.4

7

76
83

Unrealized valuation gain (loss)
recorded in thefiscal year
Q1-Q2
1.2
0.8
(0.2)
0.9
1.6
0.4
2.9
7.6

(2) Exited investments
Number ofinvestments
Partial exit
Full exit8
Total

9
9

Investment cost
B1
1.0
6.7
7.7

(3) Derivative gain and loss relating to investment

Settled
Total
Total ( (1) + (2) +(3) )Cumulative
number ofinvestments
92

Notes:
1. For a certain investment that was once decided to be transferred from the Company to SVF1 but later canceled, its unrealized gain
and loss incurred for the period leading up to the decision to cancel the transfer are not included in the presentation.
2. The letter attached to the listed companies indicates the sector to which the company belongs. Investments in that sector are notlimited to those listed companies.
3. Before deducting third-party interests, tax, and expenses

28SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 30, 2020

Portfolio of SVF2
As of September 30, 2020
(Billions of U.S. dollars)

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

Company
Listed companies (KE Holdings Inc.
(Beike))Unlisted companies
Total

Number ofinvestments

Investment cost

Fair value

Cumulative
unrealized
valuation
gain (loss)

1
12
13

1.4
1.2
2.6

6.4
1.2
7.6

5.0
(0.0)
5.0

Unrealized valuation gain (loss)
recorded in thefiscal year
Q1-Q2
5.1
0.0
5.1

As of the second quarter-end, there were no investments exited by SVF2.

(c) SoftBank Segment
1. Segment income increased 2.9% yoy: Z Holdings Corporation and the enterprise business performed strongly.
2. Business integration of Z Holdings Corporation and LINE Corporation: Expected to be completed
around March 2021.
(Millions of yen)Six months ended September 30
Net sales

2019

2020

ChangeChange %2,373,300

2,427,767

54,4672.3%

518,448533,284

14,8362.9%(330,859)(348,009)(17,150)

5.2%

Segment income (income before income tax)
Depreciation and amortization

7,900(6,043)(13,943)-

Finance cost

(28,575)(32,920)(4,345)

15.2%

Loss on equity method investments*1(14,181)(17,129)(2,948)

-

(56)

(42)

14

-

Gain (loss) on investments

Derivative loss (excluding gain (loss) on
investments)

Note:
1. This refers mainly to loss on equity method investments related to PayPay Corporation. At SoftBank Corp., PayPay Corporation
is classified as an equity method affiliate; however, PayPay Corporation has consistently been classified as a subsidiary of SBG
since its founding in June 2018 and with its financial results included in “Other.” For this reason, loss on equity method investments
related to PayPay Corporation recognized in the SoftBank segment is eliminated in the “Reconciliations” account in segment
information.

FINANCIAL RESULTS
Segment income increased ¥14,836 million (2.9%) year on year, to ¥533,284 million. This mainly reflected strong
performance by Z Holdings Corporation and the enterprise business, despite a deterioration in gain on investments.
Income increased in Z Holdings Corporation, mainly due to the consolidation of ZOZO, Inc. in November 2019
and an increase in revenue of the existing e-commerce business. Income in the enterprises business increased due
to an increase in mobile revenue, along with an increase in net sales of cloud services and security solutions
following growth in demand for remote work-related products and services to address the COVID-19 pandemic.

29

SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 30, 2020

For the consumer business, although sales declined due to the impact of lower monthly average revenue per contract as a result of discounts on mobile price plans among other factors, income increased year on year, mainly due
to the reversal of contract liabilities related to Half Price Support10 in revenues and decline in sales commissions
due to the impact of amendments to the Telecommunications Business Act,11 which became effective in October
2019.
Business integration of Z Holdings Corporation and LINE Corporation
In December 2019, Z Holdings Corporation and LINE Corporation, along with SoftBank Corp. and NAVER Corporation, concluded a four-way definitive agreement regarding a business integration (the “Business Integration”).
In August 2020, procedures required by competition laws, investment rules, and laws in each country to carry out
the Business Integration were completed. With this, the Business Integration is expected to be completed around
March 2021. As part of the transactions to realize the Business Integration, SoftBank Corp. conducted a joint
tender offer for shares of LINE Corporation, commencing on August 4, 2020 and finishing on September 15, 2020.
Z Holdings Corporation, as the listed integrated company resulting from the Business Integration, is expected
to become a subsidiary of the Company and SoftBank Corp.

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

(d) Arm Segment
1. Net sales increased 19.7% yoy Technology licensing revenue increased 30.1% yoy (U.S. dollar-based), due to strong demand forArm’s new technologies, especially into growth markets such as servers, infrastructure, andautomotive. This led to Arm signing multiple high-value licenses during the second quarter.
 Technology royalty revenue increased 22.5% yoy (U.S. dollar-based) led by an increase in shipmentsof 5G smartphones and networking equipment, and Arm-based chips for servers.
2. Segment loss deteriorated yoy Segment loss deteriorated by ¥4.0 billion yoy due to the impact of not recording foreign exchange
gain in the fiscal year, which had been recorded until the previous fiscal year, following the change
in functional currency from British pound to U.S. dollar from the beginning of the fiscal year.
3. Arm’s accelerated R&D investments blossoming into more new products for licensing During the second quarter, Arm announced new processors for Arm-based servers, smartphones,
autonomous systems including industrial robotics and autonomous vehicles, and computational
storage.12

10 A program that enables customers to purchase eligible smartphones in 48 monthly installments, with the remaining installment payments waived if the customer trades in their used handset to upgrade to a designated new model after 24 monthly installments.
11 This amendment made it mandatory to have a plan that separates the price of the handset and the communication charges and caps
the discount on mobile handsets at ¥20,000.
12 Data storage devices with computational capabilities

30

SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 30, 2020

(Millions of yen)Six months ended September 30
2020
2019

ChangeChange %Net sales

88,545

105,997

17,45219.7%

Segment income (income before income tax)

(20,820)(24,819)(3,999)-Note: Segment income includes amortization expenses of ¥24,220 million for the period and ¥24,991 million for the same period of
the previous fiscal year. These expenses are related to intangible assets recognized in the purchase price allocation at the timeof the acquisition of Arm.

OVERVIEW
Arm’s operations are primarily the licensing of semiconductor intellectual property (IP), including the design ofenergy-efficient microprocessors and associated technologies. Arm has accelerated investment in R&D by hiring
more engineers. With the expansion of its engineering capability, Arm can develop new technologies that will help
it maintain or increase its share of the existing markets and expand into new markets.
Industry trends and their impact
Semiconductor industry trends can have a significant impact on Arm’s financial results. The industry is vulnerable
to external factors, including trade disputes and sanctions against specific companies, and also the impact fromreduction in economic activity caused by COVID-19. From these impacts, if shipments of consumer electronics
devices weaken, it may lead to lower technology royalty revenue, and if customers facing reduced revenues choose
to delay licensing decisions, it may lead to lower technology licensing revenue. However, it is difficult to anticipate
the overall impact on the whole semiconductor industry or Arm at this point.
Although those risks still remain, as market conditions improve, Arm expects that its business will continue togrow. In addition, Arm is expecting that, as technology becomes more advanced, its technology will be further
utilized and opportunities will expand over the long term.
FINANCIAL RESULTS
Net sales in U.S. dollars
Net sales in this section are presented in U.S. dollars as Arm’s revenue is primarily based in U.S. dollars.
(Millions of U.S. dollars)

Technology licensing
Technology royalty
Software and services
Total net sales

Q1

Q2

125
240
53
418

87
254
55
396

Six months ended September 30
2019
2020
Total
Q1
Q2
Total
212
122
154
276
494
282
323
605
108
53
58
111
814
457
535
992

Change
64
111
3
178

Change %
30.1%
22.5%
3.0%
21.9%

Net sales for the period increased $178 million (21.9%) year on year as technology licensing revenue, technology
royalty revenue, and software and services revenues all increased.

31SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 30, 2020

Technology licensing
Technology licensing revenue increased $64 million (30.1%) year on year. Despite ongoing uncertainty in thesemiconductor industry from the impact of COVID-19, Arm saw strong demand from major customers for its
latest technologies, which led to Arm signing multiple high-valued licenses during the second quarter with major
customers. This included licenses for processors used by customers intending to build Arm-based server chips andfor autonomous systems such as industrial robotics and autonomous vehicles.
Technology royalty
Technology royalty revenue increased $111 million (22.5%) year on year. Shipments of Arm-based 5G
smartphones and networking equipment increased, and the number of Arm-based server chips also increased,
which together contributed to increasing technology royalty revenue.
Software and services
Software and services revenues increased $3 million (3.0%) year on year.
Segment income
Segment loss was ¥24,819 million, deteriorating by ¥3,999 million year on year. Arm continued to enhance its
R&D capabilities by hiring more employees, mainly technology-related personnel. The number of Arm employees
increased 523 (8.2%) from the end of the same period of the previous fiscal year, to 6,888 at the second quarterend. Despite this enhancement in R&D capabilities, the growth in net sales for the period exceeded the increase incosts associated with the increase in the number of Arm employees.
However, Arm’s segment income deteriorated year on year due to the impact of no longer recording foreignexchange gain and loss that had been recognized when U.S. dollar-denominated assets held by Arm was converted
to British pounds (a gain of ¥6,640 million was recorded in the same period of the previous fiscal year). This wasdue to the change in Arm’s functional currency from British pound to U.S. dollar in April 2020.
OPERATIONSRoyalty units13
2019

Royalty units as reported byArm’s licensees
Growth rate (yoy)2020

Apr 1 toJun 30Jul 1 toSep 30

Oct 1 toDec 31

Jan 1 toMar 31

Apr 1 toJun 30

5.6 billion

6.4 billion

6.0 billion

5.5 billion

5.6 billion

0.2%

3.2%

11.1%

14.6%

0.1%

Arm’s licensees reported shipments of 5.6 billion Arm-based chips for the three-month period ended June 30, 2020.
Arm’s unit shipments increased 0.1% year on year, while shipments by the Arm relevant part of the semiconductor
13 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, 2020, as reported by licensees in royalty reports. Arm’s licensees report their actual shipments of royalty
units one quarter in arrears; therefore, the current quarter’s royalty unit analysis is based on chips shipped in the prior quarter. In
contrast, technology royalty revenues are accrued in the same quarter the chips are shipped, based on estimates.

32SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 30, 2020

industry decreased 0.5%14 during the same period. As mentioned in “Industry trends and their impact” above, it ispossible that fewer chips will be sold this fiscal year than otherwise would be due to the outbreak of COVID-19
and other impacts. Despite fewer chips being sold, as the use of Arm technology increases, Arm still expects tocontinue to maintain or gain share in its target end markets.
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:

The first quarter:

The second quarter:

Infrastructure
Opportunity:

The first quarter:

The second quarter:

Automotive
Opportunity:

The first quarter:

The second quarter:

Arm already has over 95% share of the main chips in mobile devices and, over time, hasbeen successfully increasing royalties per chip.
Arm announced the introduction of a new technology family for premium smartphones,
including a processor, a machine learning accelerator, and a graphics processor.
Arm announced two new processors to be delivered in 2022. These processors are optimized for AI algorithms and augmented reality applications, have enhanced security features, and will deliver increased top performance.
Arm has a growing share in networking infrastructure and a nascent share in data center
servers.
· Supercomputer Fugaku with Arm technology for servers, jointly developed by RIKEN
and Fujitsu Limited, ranked number one in the TOP500, a global ranking based on calculation speed of supercomputers.
· Amazon Web Services Inc. launched two new Arm-based Graviton2 services optimized
for compute-intensive and memory-intensive applications.
Arm launched two new processors, Neoverse V1 targeting high-performance computing
and Neoverse N2 for energy-efficient data center and edge computing application.
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.
Arm announced the development of new software that enables its graphics processors tobe shared by different applications within a vehicle such as infotainment and the dashboard. AUDI AG and Samsung Electronics Co., Ltd. are among customers implementing
Arm’s graphics IP in vehicles to be launched in 2022.
Arm launched three new processors, Cortex-A78AE, Mali-G78AE, and Mali-C71AE, designed to make autonomous systems, including industrial robotics and autonomous vehicles, safer and more reliable.

IoT
Opportunity:

The second quarter:

For IoT to reach its full potential, it must be secure against hacking and robust against
faults. Arm has developed technology to secure and manage the data in IoT device networks.
Arm announced the introduction of Cortex-R82 processor, designed specifically for computational storage,12 a new market segment that will help enable IoT gateways, whichconnect IoT devices and the network, and edge servers.

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

14 Worldwide Semiconductor Trade Statistics (WSTS) as of August 2020. Excludes memory and analog chips, which do not containprocessor technology. This data is compiled on the basis of data submitted by semiconductor companies participating in the survey.

33

SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 30, 2020(e) Other(Millions of yen)Six months ended September 30
2019

2020

ChangeChange %Net sales

91,913

106,128

14,21515.5%

Segment income (income before income tax)

(40,796)

52,99993,795-(19,362)(21,332)(1,970)

10.2%

Gain on investments

7,794

123,102115,308-

Finance cost

(7,161)(8,005)

(844)

11.8%

Income on equity method investments

338

6,908

6,570

-

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

391

(250)

(641)

-

Depreciation and amortization

Segment income for the Other segment totaled ¥52,999 million. This was primarily due to recording income before
income tax of ¥61,939 million in the investment fund business in Latin America, led by recording gain on investments of ¥63,468 million following an increase in the fair values of investments from the previous fiscal year-end.
As of the second-quarter end, the cumulative investment amount by the investment fund business in Latin America
totaled $1,922 million, with a fair value of $2,069 million. In addition, Fortress Investment Group LLC also recorded gain on investments of ¥54,316 million driven by an increase in the fair value of investments held in thecompany, which resulted in income before income tax of ¥44,580 million.
On the other hand, PayPay Corporation, which is engaged in smartphone payment services in Japan, recorded
loss before income tax of ¥29,318 million, mainly reflecting its continued marketing promotions aimed at gaining
users and driving service usage, along with proactive measures to increase the number of stores where its services
can be used. Loss before income tax was lower year on year, mainly due to an increase in payment commission
revenue, as well as curbed expenses related to acquiring and retaining users through measures such as changing
the basic allocation rate of points to customers. PayPay Corporation’s payment services continued to see a strong
growth, with the number of payments for the period reaching 915 million, a 6.4-fold increase year on year.
Results of PayPay Corporation included in the Other segment(Millions of yen)Six months ended September 30
Net sales
Loss before income taxes

2019

2020

ChangeChange %1,596

12,135

10,539660.3%(34,556)(29,318)

5,238

-

34

SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 30, 2020

(2) Overview of Financial Position

1. Progress of the ¥4.5 trillion program and main impacts
 Sale and monetization of assets(1) Partial sale and monetization of T-Mobile shares*1- Recorded T-Mobile shares totaling ¥1,286.1 billion (as of the second quarter-end) as investment securities for those shares continued to be held after the sale.
- Borrowed $4.38 billion using T-Mobile shares (margin loan). Of this, $2.3 billion is included as proceedsfrom the ¥4.5 trillion program.
(2) Entry into several prepaid forward contracts using Alibaba shares- Recorded financial liabilities of ¥2,124.6 billion (as of the second quarter-end) relating to sale of sharesby prepaid forward contracts.
(3) Partial sale of SoftBank Corp. shares- Changes in interests in subsidiaries of ¥932.4 billion (increase in capital surplus)
 Reduction of interest-bearing debt
- SBG repaid senior loans of ¥300.0 billion early and repurchased domestic unsecured corporate bonds of¥167.6 billion (face value).
- SBG’s wholly owned subsidiary conducting fund procurement fully repaid $9.44 billion of borrowings
made using Alibaba shares (margin loan).
 Share repurchase- The Company repurchased ¥1,024.1 billion of its own shares during the period.
Of this, the amount acquired based on the ¥4.5 trillion program was ¥540.1 billion.
2. Investments related to the asset management subsidiaries recorded as current assets and current
liabilities*2- Investments in listed stocks: Investments from asset management subsidiaries of ¥1,551.8 billion
Securities pledged as collateral (other financial assets) of ¥213.3 billion- Derivative investments: Derivative financial assets in asset management subsidiaries of ¥496.6 billion
Derivative financial liabilities in asset management subsidiaries of ¥207.0 billion
3. Carrying amount of investments from SVF1 and SVF2 accounted for using FVTPL of ¥7.9 trillion, an
increase of ¥1,057.2 billion from the previous fiscal year-end*3
Mainly reflecting the increase in fair values of investments, the carrying amount of investments from SVF1
amounted to ¥7,140.5 billion (up ¥458.9 billion from the previous fiscal year-end) and carrying amount ofinvestments from SVF2 amounted to ¥808.9 billion (up ¥598.3 billion from the previous fiscal year-end).
Notes:
1. For details of the merger of Sprint and T-Mobile US, Inc. and partial sale of T-Mobile shares, see “1. Completion of the merger ofSprint and T-Mobile US, Inc. and partial sale of T-Mobile shares, etc.” on page 6 under “PROGRAM TO SELL OR MONETIZE¥4.5 TRILLION OF ASSETS (¥4.5 TRILLION PROGRAM)” in “(1) Overview of Results of Operations.”
2. For details, see “(a) Investment Business of Holding Companies Segment” under “b. Results by Segment” in “(1) Overview ofResults of Operations.”
3. Investment in Arm is not included in investments from SVF1 as Arm is a subsidiary of the Company.
(Millions of yen)March 31, 2020

September 30, 2020

ChangeChange %Total assets

37,257,292

35,648,197(1,609,095)(4.3%)

Total liabilities

29,884,375

27,227,592(2,656,783)(8.9%)

Total equity

7,372,917

8,420,605

1,047,688

14.2%

35

SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 30, 2020(a) Assets(Millions of yen)March 31, 2020

September 30, 2020

ChangeCash and cash equivalents

3,369,015

5,105,162

1,736,147

Trade and other receivables

2,072,326

1,948,750(123,576) B

Investments from asset management subsidiaries-

1,551,805

1,551,805

C

Derivative financial assets in asset management
subsidiaries-

496,637

496,637

D

Other financial assets

313,487

777,341

463,854

E

Inventories

185,097

133,245(51,852)

Other current assets

460,970

177,226(283,744)

Assets classified as held for sale

9,236,048

216,168(9,019,880) F

Total current assets

15,636,943

10,406,334(5,230,609)

Property, plant and equipment

1,264,516

1,440,417

175,901

Right-of-use assets

1,293,692

1,222,481(71,211)

Goodwill

3,998,167

3,941,314(56,853)

Intangible assets

1,985,972

1,899,529(86,443)

212,036

225,289

13,253

Investments accounted for using the equity method

3,240,361

3,505,562

265,201

H

Investments from SVF1 and SVF2 accounted forusing FVTPL

6,892,232

7,949,382

1,057,150

I

SVF1

6,681,671

7,140,527

458,856

SVF2

210,561

808,855598,294

1,211,511

2,892,510

1,680,999

J

59,278551,542492,264

K

Other financial assets

1,100,694

1,257,832

157,138

Deferred tax assets

221,371

215,490(5,881)Other non-current assets

140,519

140,515(4)

Total non-current assets

21,620,349

25,241,863

3,621,514

Total assets

37,257,292

35,648,197(1,609,095)

Costs to obtain contracts

Investment securities
Derivative financial assets

36

A

G

SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 30, 2020

Reasons for changes by primary component
Components
Current assets
A Cash and cash equivalents

Main reasons for changes from the previous fiscal year-end
Cash and cash equivalents increased mainly due to the sale and monetizationof assets based on the ¥4.5 trillion program. For details, see “(3) Overview ofCash Flows.”

B Trade and other receivables

Brightstar’s accounts receivable (¥143,000 million as of the previous fiscal
year-end) were reclassified as investments held for sale in conjunction withthe classification of Brightstar in the disposal group classified as held for saleat the second quarter-end.

C Investment from asset management subsidiaries

The fair value of listed stocks held by SB Northstar at the second quarter-end
was recorded.

D Derivative financial assets in asset management subsidiaries

The fair value of long call option of listed stocks held by SB Northstar at thesecond quarter-end was recorded.

E Other financial assets

SB Northstar pledged collateral for borrowings used for acquisition transaction of investments, short stock index futures contracts, and short credit transactions. Securities pledged as collateral of ¥213,315 million, margin depositsof ¥244,400 million, and restricted cash of ¥105,824 million were recorded.
For details of other financial assets, see “Other financial assets (current)” under “(6) Notes to Condensed Interim Consolidated Financial Statements” in“3. Condensed Interim Consolidated Financial Statements and Primary
Notes.”F Assets classified as held for sale

· Sprint’s assets had been classified as held for sale at the previous fiscal
year-end in conjunction with the classification of Sprint in the disposalgroup classified as held for sale; however, these assets were removed as
Sprint ceased to be a subsidiary of the Company at the beginning of the fiscal year.
· Brightstar’s assets were separately presented in conjunction with the classification of Brightstar in the disposal group classified as held for sale at thesecond quarter-end.

37

SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 30, 2020

Components
Non-current assets
G Property, plant and equipment

Main reasons for changes from the previous fiscal year-end
SoftBank Corp. acquired telecommunications equipment including that for5G.

H Investments accounted for using
the equity method

Income on equity investments related to Alibaba was recorded.

I Investments from SVF1 andSVF2 accounted for using
FVTPL· At SVF1, unrealized gain on valuation of investments of ¥729,852 million(net)4 was recorded, reflecting increases in the fair values of investments
held at the second quarter-end.
· At SVF2, unrealized gain on valuation of investments of ¥537,220 million(net) was recorded, mainly due to the share price increase of KE Holdings
Inc. after its listing.
For details, see “(b) SVF1 and Other SBIA-Managed Funds Segment” under“b. Results by Segment” in “(1) Overview of Results of Operations” onpage 24.

J Investment securities· The fair value of T-Mobile shares continued to be held after the partial sale
totaled ¥1,286,053 million, increased by ¥100,080 million from the time ofinitial recognition on June 26, 2020 to the second quarter-end. For details,
see “(1) Completion of the merger of Sprint and T-Mobile US, Inc. and partial sale of T-Mobile shares, etc.” on page 6 under “PROGRAM TO SELL
OR MONETIZE ¥4.5 TRILLION OF ASSETS (¥4.5 TRILLION PROGRAM)” in “(1) Overview of Results of Operations.”· At the investment fund business in Latin America, the fair values of investments increased ¥105,204 million mainly due to new investments and valuation uplifts in several portfolio companies.

K Derivative financial assets· Derivative financial assets of ¥373,350 million were recorded related to theCompany’s right to acquire T-Mobile shares for no additional consideration
if certain conditions are met, which was received as consideration for themerger of Sprint and T-Mobile US, Inc. The fair value of these shares increased by ¥177,037 million from the time of the Merger to the second quarter-end.
· Derivative financial assets of ¥101,485 million were recorded related to several prepaid forward contracts using Alibaba shares.

38SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 30, 2020(b) Liabilities(Millions of yen)March 31, 2020

September 30, 2020

Change3,845,153

2,900,777(944,376)

Lease liabilities

378,383

338,169(40,214)

Deposits for banking business

873,087

1,046,071

172,984

Third-party interests in SVF1

24,691-(24,691)

1,585,326

1,330,103(255,223)A-

207,040

207,040B

9,267

181,367

172,100

C

Other financial liabilities

248,010580,355

332,345

D

Income taxes payables

164,298

386,557

222,259

E

Provisions

11,44843,41831,970

Other current liabilities

596,499

450,657(145,842)

F

Liabilities directly relating to assets classified asheld for sale

6,454,971

134,794(6,320,177)

G

Total current liabilities

14,191,133

7,599,308(6,591,825)

Interest-bearing debt

9,286,729

11,506,769

2,220,040

761,943

752,102(9,841)

Third-party interests in SVF1

4,559,728

5,244,921

685,193

Derivative financial liabilities

128,075

613,757

485,682

Other financial liabilities

77,207

152,332

75,125

Provisions

88,791

94,365

5,574

Deferred tax liabilities

711,216

967,790

256,574

I

Other non-current liabilities

79,553296,248

216,695

J

Total non-current liabilities

15,693,242

19,628,284

3,935,042

Total liabilities

29,884,375

27,227,592(2,656,783)

Interest-bearing debt

Trade and other payables
Derivative financial liabilities in asset management subsidiaries
Derivative financial liabilities

Lease liabilities

39

H

SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 30, 2020

Reasons for changes by primary component
Components
Current liabilities
A Trade and other payables

Main reasons for changes from the previous fiscal year-end
Brightstar’s accounts payable (¥142,740 million as of the previous fiscal
year-end) were reclassified as liabilities directly relating to assets classified
as held for sale in conjunction with the classification of Brightstar in the disposal group classified as held for sale at the second quarter-end.

B Derivative financial liabilities in
asset management subsidiaries

The fair values of short call option of listed stocks and short stock index futures contracts held by SB Northstar at the second quarter-end were recorded.

C Derivative financial liabilities

Derivative financial liabilities of ¥178,670 million were recorded for the call
options received by Deutsche Telekom for T-Mobile shares held by theCompany.

D Other financial liabilities· The fair values of the securities borrowed for short credit transactions by
SB Northstar totaling ¥434,572 million were recorded. For details of otherfinancial liabilities, see “10. Other financial liabilities (current)” under “(6)Notes to Condensed Interim Consolidated Financial Statements” in “3.
Condensed Interim Consolidated Financial Statements and Primary Notes.”· Valuation loss allowances decreased by ¥113,782 million in relation to thefinancial guarantee contract and loan commitment for WeWork, mainly due
to the improvement of its credit risk.

E Income taxes payables

Income taxes payable were recorded, primarily for a gain on the partial saleof SoftBank Corp. shares at SBGJ.

F Other current liabilities¥102,100 million was paid for withholding income tax that arose in the previous fiscal year related to dividends from Yahoo Japan Corporation to Z
Holdings Corporation.

G Liabilities directly relating to assets classified as held for sale

· Sprint’s liabilities had been classified as held for sale at the previous fiscal
year-end in conjunction with the classification of Sprint in the disposalgroup classified as held for sale; however, these liabilities were removed as
Sprint ceased to be a subsidiary of the Company at the beginning of the fiscal year.
· Brightstar’s liabilities were separately presented in conjunction with theclassification of Brightstar in the disposal group classified as held for sale atthe second quarter-end.

Non-current Liabilities
H Derivative financial liabilities

Derivative financial liabilities of ¥536,972 million were recorded related toseveral prepaid forward contracts using Alibaba shares.

I Deferred tax liabilities

Deferred tax liabilities increased at SBG.

J Other non-current liabilities

A deposit of $1.25 billion received for the sale of all shares of Arm was recorded. For details, see “SALE OF ALL SHARES IN ARM” under “(1)Overview of Results of Operations” on page 10.

40

SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 30, 2020

(Reference) Interest-bearing debt and lease liabilities (total of current liabilities and non-current liabilities)(Millions of yen)

SoftBank Group Corp. / Wholly owned
subsidiaries conducting fund procurement*1 / SB
Northstar
SoftBank Group Corp.
Borrowings
Corporate bonds
Lease liabilities
Commercial paper
Wholly owned subsidiaries conducting fundprocurement*1
Borrowings
Financial liabilities relating to sale of shares by
prepaid forward contracts
SB Northstar
Borrowings
SVF1 and Other SBIA-Managed Funds segment
SVF1
Borrowings
SBIA
Lease liabilities
SoftBank segment
SoftBank Corp.
Borrowings
Corporate bonds
Lease liabilities
Commercial paper
Z Holdings Corporation*2
Borrowings
Corporate bonds
Lease liabilities
Other subsidiaries
OthersOther interest-bearing debt
Lease liabilities
Total

March 31, 2020

September 30, 2020

Change8,247,063
6,528,734
1,388,240
5,034,494
106,000

9,278,798
5,832,470
946,518
4,780,386
13,56692,0001,031,735(696,264)(441,722)(254,108)
13,566(14,000)

1,718,329
1,522,228

3,082,002
957,426

1,363,673(564,802)

196,101-

2,124,576
364,326
364,326

1,928,475
364,326
364,326

581,543
581,543535
535

156,340
156,340389
389(425,203)(425,203)
(146)
(146)

3,828,904
2,856,027
40,000832,877
100,000
839,042
463,598354,327
21,117413,127

4,340,975
3,248,372
140,000
799,503
153,100
892,406
322,142553,828
16,436
481,964

512,071
392,345
100,000(33,374)
53,10053,364(141,456)
199,501(4,681)
68,837

259,801
102,193

250,123
96,822(9,677)(5,371)

14,272,208

15,497,817

1,225,609

Notes:
1. Indicates the interest-bearing debts of Skywalk Finance GK, West Raptor Holdings, LLC, West Raptor Holdings 2, LLC, Skybridge
LLC, Skylark 2020 Holdings Limited, Scout 2020 Holdings Limited, Tigress 2020 Holdings Limited, Moonlight Finance GK, andDelaware Project 6 L.L.C. All of these are entirely non-recourse to SBG, except for the interest-bearing debt of Delaware Project
6 L.L.C. of $4.38 billion, which is exceptionally guaranteed by SBG to a limit of $2.08 billion. As a precondition for SBG to fulfill
its guarantee obligations, the lenders are obligated to first recover the amount to the maximum extent possible from Alibaba sharesthat have been pledged as collateral.
2. Includes the interest-bearing debt and lease liabilities of Yahoo Japan Corporation.

41

SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 30, 2020

Reasons for changes from the previous fiscal year-end at core companies
SBG / Wholly owned subsidiaries conducting fund procurement / SB Northstar
SBG
・SBG repaid senior loans totaling ¥359.9 billion (including early repayment of ¥300.0 billion).
・SBG redeemed domestic unsecured corporate bonds of ¥100.0 billion at maturity and repurchased domestic
unsecured corporate bonds with a total face value of ¥167.6 billion.
・SBG repaid commercial paper in the amount of ¥14.0 billion (net).
(Wholly owned subsidiaries conducting fund procurement)
Skywalk Finance GK・Skywalk Finance GK fully repaid $9.44 billion of borrowings made using Alibaba shares (margin loan).
West Raptor Holdings 2, LLC, Skybridge LLC, Skylark 2020 Holdings Limited, Scout 2020 Holdings Limited, and Tigress 2020 Holdings Limited
・As a result of entering into several prepaid forward contracts using Alibaba shares with financial institutions
from April to August 2020, financial liabilities relating to sale of shares by prepaid forward contracts of¥2,124,576 million were recorded at the second quarter-end.
Delaware Project 6 L.L.C.
・Borrowings of $4.38 billion were made using T-Mobile shares (margin loan).
SB Northstar
・SB Northstar made short-term borrowings to acquire listed stocks.
SVF1 and Other SBIA-Managed Funds segment
・SVF1 repaid $3.08 billion of borrowings from a line of credit set up mainly to increase capital efficiency to fundinvestments (the “Fund Level Facility”). No borrowings were outstanding as of the second quarter-end.
・SVF1 repaid $0.79 billion of borrowings made for the purpose of monetizing a portion of its investments (the“Portfolio Financing Facility”).
SoftBank segment
SoftBank Corp.
・Borrowings increased mainly due to the securitization of receivables related to telecommunications and the saleand leaseback of telecommunications equipment.
・Domestic straight corporate bonds totaling ¥100.0 billion were issued.
Z Holdings Corporation
・Short-term borrowings were repaid.
・Domestic straight corporate bonds totaling ¥200.0 billion were issued.

42

SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 30, 2020(c) Equity(Millions of yen)March 31, 2020

September 30, 2020

ChangeCommon stock

238,772

238,772-

Capital surplus

1,490,325

2,388,019

897,694

496,876

496,876-

Retained earnings

3,945,820

5,768,915

1,823,095

Treasury stock(101,616)(1,113,272)(1,011,656) C

Accumulated other comprehensive income(362,259)(471,611)(109,352)

Accumulated other comprehensive income directly
relating to assets classified as held for sale205,695(4,946)

Total equity attributable to owners of the parent

5,913,613

7,302,753

1,389,140

Non-controlling interests

1,459,304

1,117,852(341,452) E

Total equity

7,372,917

8,420,605

1,047,688

Other equity instruments

AB(210,641) D

Reasons for changes by primary component
Components

Main reasons for changes from the previous fiscal year-end

A Capital surplus

Changes in interests in subsidiaries of ¥932,388 million were recorded in conjunction with the partial sale of SoftBank Corp. shares.

B Retained earnings

Net income attributable to owners of the parent of ¥1,883,211 million was recorded.
· The Company repurchased 102,960 thousand of its own shares for ¥483,971 million (4,720 thousand shares for ¥16,028 million in the previous fiscal year) in accordance with the March 13, 2020 Board resolution.
· The Company repurchased 81,940 thousand of its own shares for ¥500,000 million in accordance with the May 15, 2020 Board resolution.
· The Company repurchased 6,174 thousand of its own shares for ¥40,083 million
in the second quarter in accordance with the June 25, 2020 Board resolution witha maximum total repurchase amount of ¥500,000 million.

C Treasury stock

D Accumulated other comprehensive income directly
relating to assets classified
as held for sale

· Sprint’s accumulated other comprehensive income had been classified as held forsale at the previous fiscal year-end in conjunction with the classification of Sprintin the disposal group classified as held for sale; however, this was removed as
Sprint ceased to be a subsidiary of the Company at the beginning of the fiscal
year.
· At the second quarter-end, Brightstar’s accumulated other comprehensive income
was separately presented in conjunction with the classification of Brightstar in thedisposal group classified as held for sale.

E Non-controlling interests· Sprint’s non-controlling interests of ¥424,746 million (as of the previous fiscal
year-end) were removed as Sprint ceased to be a subsidiary of the Company following the completion of the merger of Sprint and T-Mobile US, Inc. at the beginning of the fiscal year.
· Non-controlling interests increased by ¥134,413 million in conjunction with thepartial sale of SoftBank Corp. shares.

43SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 30, 2020(3) Overview of Cash Flows

1. Completed the sale and monetization of assets for the ¥4.5 trillion program. Progress made onshare repurchase and debt reduction
 Completed the sale and monetization of assets of ¥4.5 trillion through a combination of partial sales ofshares and borrowings/monetization using T-Mobile, Alibaba, and SoftBank Corp. shares.
 Repurchased ¥540.1 billion of own shares (¥1,024.1 billion in total in the period, combined with share
repurchase resolved before the ¥4.5 trillion program). In reducing debts, the Company repurchased
domestic unsecured corporate bonds with a total face value of ¥167.6 billion, fully repaid $9.44 billionof borrowings made using Alibaba shares (margin loan), and repaid early ¥300.0 billion of seniorloans.
2. Initiated investments in listed stocks and other instruments from the fiscal year to diversify asset
portfolios and manage surplus funds
 Investments were initially made by SBG directly and later by the newly established SB Northstar
starting from the second quarter.
 Investments made by SBG are recorded in cash flows from investing activities: Payments foracquisition of investments of ¥2,705.4 billion and proceeds from sales/redemption of investments of¥675.7 billion.
 Investments made by SB Northstar are recorded in cash flows from operating activities as thecompany’s primary business is to frequently trade marketable securities.
(Millions of yen)Six months ended September 30
2019
2020

ChangeCash flows from operating activities

373,659

531,867

158,208

Cash flows from investing activities(2,125,621)(322,186)

1,803,435

Cash flows from financing activities

2,191,030

1,591,071(599,959)

Note: Cash flows from discontinued operations are included. For details of cash flows from discontinued operations, see “3. Discontinued operations” under “(6) Notes to Condensed Interim Consolidated Financial Statements” in “3. Condensed Interim Consolidated Financial Statements and Primary Notes.”(a) Cash Flows from Operating Activities

Cash flows from operating activities increased ¥158,208 million year on year. Income taxes paid decreased by¥645,300 million year on year mainly due to income taxes of ¥321,290 million being paid in the same period of
the previous fiscal year on items such as a gain on the sale of SoftBank Corp. shares at SBGJ that arose in thefiscal year ended March 2019, as well as a withholding income tax of ¥422,648 million on dividends from SBGJ
to SBG. The latter withholding income tax was refunded in July 2019.
(b) Cash Flows from Investing Activities

Primary components
Components

Primary details

Payments for acquisition of investments¥(3,007,576) million· SBG acquired highly liquid listed stocks for ¥2,705,425 million

Proceeds from sales/redemption of investments¥2,888,033 million· SBG received proceeds of ¥675,688 million from the sale of a portion of the abovementioned highly liquid listed stocks.
· SBG received proceeds of ¥2,099,746 million from the partial saleof its T-Mobile shares held through a subsidiary.

with the aim of diversifying its assets and managing surplus funds.
· SoftBank Corp. acquired LINE shares through a joint tender offer.

44

SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 30, 2020

Components

Primary details

Payments for acquisitions of investments
by SVF1 and SVF2¥(219,962) million· SVF1 made follow-on investments in existing portfolio companies
and their joint ventures.
· SVF2 made new investments.

Proceeds from sale of investments by
SVF1¥281,456 million

SVF1 sold investments.

Outlays for purchase of property, plant andequipment, and intangible assets¥(339,188) million

SoftBank Corp. purchased telecommunications equipment includingthat for 5G.

Note: Out of $2.0 billion received upon the execution of the Purchase Agreement for sale of all shares in Arm, a deposit of $1.25
billion is included in “other” under cash flows from investing activities.

(c) Cash Flows from Financing Activities

Primary components
Components

Primary details

Proceeds in short-term interestbearing debt, net¥788,983 million· SB Northstar made short-term borrowings of ¥364,601 million (net) to acquire listed stocks.
· SoftBank Corp. borrowed ¥298,000 million (net) through the securitization of receivables related to telecommunications.

Proceeds from interest-bearing debt
¥3,657,623 million
Proceeds from borrowings¥1,696,671 million*1· SBG made short-term borrowings of ¥361,400 million.
· Delaware Project 6 L.L.C. procured $4.38 billion through borrowings
made using T-Mobile shares (margin loan).
· SoftBank Corp. borrowed ¥420,478 million and Z Holdings Corporation
made short-term borrowings of ¥159,700 million.

Proceeds from issuance ofbonds¥300,000 million

SoftBank Corp. and Z Holdings Corporation issued domestic straight corporate bonds totaling ¥100,000 million and ¥200,000 million, respectively.

Proceeds from procurement by
prepaid forwards contract using shares¥1,660,952 million

The Company’s wholly owned subsidiaries conducting fund procurement
entered into several prepaid forward contracts using Alibaba shares with financial institutions and procured an aggregate amount of $15.4 billion.

Repayment of interest-bearing debt¥(3,408,750) million
Repayment of borrowings¥(3,140,565) million*1· SBG repaid short-term borrowings of ¥447,350 million and senior loansof ¥359,860 million (including early repayment of ¥300,000 million).

· SVF1 repaid $3.08 billion of borrowings under the Fund Level Facility
and $0.79 billion of borrowings under the Portfolio Financing Facility.
· Skywalk Finance GK fully repaid $9.44 billion in borrowings made using
Alibaba shares (margin loan).
· SoftBank Corp. repaid borrowings of ¥394,889 million and Z Holdings
Corporation repaid short-term borrowings of ¥345,570 million.
Redemption of corporatebonds¥(268,185)million

SBG redeemed domestic unsecured corporate bonds of ¥100,000 million at
maturity and repurchased domestic unsecured corporate bonds with a total
face value of ¥167,595 million.

45

SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 30, 2020

Components

Primary details

Contributions into SVF1 fromthird-party investors¥764,660 million

SVF1 received cash contributions from third-party investors based on capital calls.

Distribution/repayment from SVF1
to third-party investors¥(421,464) million

SVF1 made distributions and repayments of investments to third-party investors.

Proceeds from the partial sales ofshares of subsidiaries to non-controlling interests¥1,526,867 million

SBG sold portions of SoftBank Corp. shares it owns through a subsidiary in
May 2020 and September 2020.

Purchase of treasury stock¥(1,024,068) million

SBG repurchased its own shares in accordance with resolutions of theBoard of Directors on March 13, 2020, May 15, 2020, and June 25, 2020.

Note:
1. Proceeds from borrowings and repayment of borrowings include proceeds of ¥705,305 million and outlays of ¥1,275,793 million,
respectively, related to borrowings with a contracted term of one year or less.

(4) Forecasts

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

46

SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 30, 2020

2. Notes to Summary Information(1) Significant Changes in Scope of Consolidation for the Six-Month Period Ended September 30, 2020(Specified subsidiary (three entities) excluded from the scope of consolidation)
On April 1, 2020 (EST), the merger of Sprint Corporation (“Sprint”) and T-Mobile US, Inc. in an all-stock transaction(“the Transaction”) was completed. Upon completion of the Transaction, Starburst I, Inc. and Sprint which were
specified subsidiaries of the Company, and Sprint Communications, Inc. which was a subsidiary of Sprint, were nolonger subsidiaries of the Company. The details are described in “Note 3. Discontinued operations (1) Sprint” in “(6)Notes to Condensed Interim Consolidated Financial Statements” under “3. Condensed Interim Consolidated Financial
Statements and Primary Notes.”(2) Changes in Accounting Estimates(Changes in estimate for use of loss carryforwards)
In May 2020, SoftBank Group Japan Corporation (“SBGJ”), a wholly-owned subsidiary of the Company, transferred a
portion of SoftBank Corp. shares held (ownership percentage: 5.0%) and, in September 2020, transferred a portion of
SoftBank Corp. shares held (ownership percentage: 21.7%).
As a result of the transactions, it was probable that taxable income would be available for a loss carry forward whose
deferred tax asset was not recognized in SBGJ. Accordingly, a credit of income taxes (profit) was recorded due to thechange in estimate. The details are described in “Note 8. Income taxes” in “(6) Notes to Condensed Interim
Consolidated Financial Statements” under “3. Condensed Interim Consolidated Financial Statements and Primary
Notes.”(Allowance for loan commitment losses)
As of September 30, 2020, expected credit losses for a loan commitment for WeWork, an equity method associate of
the Company, were estimated. As a result, reversal of allowance was recorded. The details are described “Notes 1” in“Note 18. Other gain” in “(6) Notes to Condensed Interim Consolidated Financial Statements” under “3. Condensed
Interim Consolidated Financial Statements and Primary Notes.”(Allowance for financial guarantee contract losses)
As of September 30, 2020, expected credit losses for a financial guarantee contract for WeWork, an equity method
associate of the Company, were estimated. As a result, reversal of allowance was recorded. The details are described“Notes 3” in “Note 18. Other gain” in “(6) Notes to Condensed Interim Consolidated Financial Statements” under “3.
Condensed Interim Consolidated Financial Statements and Primary Notes.”(Allowance for loss indemnification)
The Company may indemnify T-Mobile and its subsidiaries against any losses incurred by T-Mobile and its
subsidiaries under certain circumstances. It is probable that such indemnification will be made and therefore allowance
was recorded for the six-month period ended September 30, 2020. The details are described in “Notes 2” in “Note 3.
Discontinued operations (1) Sprint” in “(6) Notes to Condensed Interim Consolidated Financial Statements” under “3.
Condensed Interim Consolidated Financial Statements and Primary Notes.”(Impairment of assets)
On September 17, 2020, the Company has entered into a definitive agreement with Brightstar Capital Partners, in order
to sell all of its shares in Brightstar to a newly formed subsidiary of Brightstar Capital Partners. An impairment loss on
goodwill was recorded as the fair value less costs to sell (expected sale price) of Brightstar is lower than the carrying
amount. The details are described in “Note 3. Discontinued operations (2) Brightstar” in “(6) Notes to Condensed
Interim Consolidated Financial Statements” under “3. Condensed Interim Consolidated Financial Statements andPrimary Notes.”

47

SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 30, 2020

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,
unless otherwise stated or interpreted differently in the context, are as follows:
Company names / Abbreviations

Definition

SoftBank Group Corp.

SoftBank Group Corp. (stand-alone basis)

The Company

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

SB Northstar LP

SoftBank Vision Fund or SVF1

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

SVF2

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

SBIA

SB Investment Advisers (UK) Limited

SprintSprint Corporation

T-Mobile

T-Mobile US, Inc. after merging with SprintArm

Arm Limited

Brightstar

Brightstar Global Group Inc.

Fortress

Fortress Investment Group LLC

Alibaba

Alibaba Group Holding Limited

WeWork

The We Company

48

SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 30, 2020

From the three-month period ended September 30, 2020, the description of “SoftBank Vision Fund and other
SBIA-managed funds” presented in the names of accounts and reportable segment has been changed as follows:
Condensed Interim Consolidated Statement of Financial Position
Previous

Current

Investments from SoftBank Vision Fund and other Investments from SVF1 and SVF2 accounted for
SBIA-managed funds accounted for using FVTPL
using FVTPL
Third-party interests in SoftBank Vision Fund andThird-party interests in SVF1
other SBIA-managed funds
Condensed Interim Consolidated Statement of Income
Previous

Current

Gain (loss) on investments at SoftBank Vision Fund
Gain (loss) on investments at SVF1 and SVF2
and other SBIA-managed funds
Change in third-party interests in SoftBank Vision
Change in third-party interests in SVF1
Fund and other SBIA-managed funds
Condensed Interim Consolidated Statement of Cash Flows
Previous(Gain) loss on investments at SoftBank Vision Fundand other SBIA-managed funds
Change in third-party interests in SoftBank Vision
Fund and other SBIA-managed funds
Payments for acquisition of investments by
SoftBank Vision Fund and other SBIA-managed
funds
Proceeds from sales of investments by SoftBank
Vision Fund and other SBIA-managed funds
Contributions into SoftBank Vision Fund and other
SBIA-managed funds from third-party investors
Distribution/repayment from SoftBank Vision Fundand other SBIA-managed funds to third-party
investors

Current(Gain) loss on investments at SVF1 and SVF2
Change in third-party interests in SVF1
Payments for acquisition of investments by SVF1 and
SVF2Proceeds from sales of investments by SVF1
Contributions into SVF1 from third-party investors
Distribution/repayment from SVF1 to third-party
investors

Segment information
Previous

Current

SoftBank Vision Fund and Other SBIA-Managed
SVF1 and Other SBIA-Managed Funds segment
Funds segment

49SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 30, 2020

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

As ofMarch 31, 2020
AssetsCurrent assets
Cash and cash equivalents
Trade and other receivables
Investments from asset management subsidiaries
Derivative financial assets in asset management
subsidiaries
Other financial assets
Inventories
Other current assets
Subtotal
Assets classified as held for sale
Total current assets
Non-current assets
Property, plant and equipment
Right-of-use assets
Goodwill
Intangible assets
Costs to obtain contracts
Investments accounted for using the equity method
Investments from SVF1 and SVF2 accounted for using
FVTPL
Investment securities
Derivative financial assets
Other financial assets
Deferred tax assets
Other non-current assets
Total non-current assets
Total assets

50

As of
September 30, 2020

3,369,015
2,072,326-

5,105,162
1,948,750
1,551,805-

496,637

313,487
185,097
460,970
6,400,895
9,236,048
15,636,943

777,341
133,245
177,226
10,190,166
216,168
10,406,334

1,264,516
1,293,692
3,998,167
1,985,972
212,0363,240,361

1,440,417
1,222,481
3,941,314
1,899,529
225,289
3,505,562

6,892,232

7,949,382

1,211,511
59,2781,100,694
221,371
140,519
21,620,349
37,257,292

2,892,510
551,542
1,257,832
215,490
140,515
25,241,863
35,648,197

SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 30, 2020

(Millions of yen)

As ofMarch 31, 2020
Liabilities and equity
Current liabilities
Interest-bearing debt
Lease liabilities
Deposits for banking business
Third-party interests in SVF1
Trade and other payables
Derivative financial liabilities in asset management
subsidiaries
Derivative financial liabilities
Other financial liabilities
Income taxes payables
Provisions
Other current liabilities
Subtotal
Liabilities directly relating to assets
classified as held for sale
Total current liabilities
Non-current liabilities
Interest-bearing debt
Lease liabilities
Third-party interests in SVF1
Derivative financial liabilities
Other financial liabilities
Provisions
Deferred tax liabilities
Other non-current liabilities
Total non-current liabilities
Total liabilities
EquityEquity attributable to owners of the parent
Common stock
Capital surplus
Other equity instruments
Retained earnings
Treasury stock
Accumulated other comprehensive income
Subtotal
Accumulated other comprehensive income directly
relating to assets classified as held for sale
Total equity attributable to owners of the parent
Non-controlling interests
Total equity
Total liabilities and equity

51

As of
September 30, 2020

3,845,153
378,383
873,087
24,691
1,585,326

2,900,777
338,169
1,046,071
1,330,103-

207,040

9,267
248,010
164,298
11,448596,499
7,736,162

181,367
580,355
386,557
43,418450,657
7,464,514

6,454,971

134,794

14,191,133

7,599,308

9,286,729
761,9434,559,728
128,075
77,20788,791
711,216
79,553
15,693,242
29,884,375

11,506,769
752,1025,244,921
613,757
152,332
94,365
967,790296,248
19,628,284
27,227,592

238,772
1,490,325
496,876
3,945,820(101,616)(362,259)
5,707,918

238,772
2,388,019
496,8765,768,915(1,113,272)(471,611)
7,307,699

205,695(4,946)

5,913,613

7,302,753

1,459,304
7,372,917
37,257,292

1,117,852
8,420,605
35,648,197

SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 30, 2020

(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)

Continuing operations1
Net sales
Cost of sales
Gross profit
Gain on investments
Gain on investments at Investment Business of Holding
Companies
Gain (loss) on investments at SVF1 and SVF2
Gain on other investments
Total gain on investments
Selling, general and administrative expenses
Finance cost
Income on equity method investments
Derivative gain (loss) (excluding gain (loss) on
investments)
Change in third-party interests in SVF1
Other gain
Income before income tax
Income taxes
Net income from continuing operations
Discontinued operations1
Net income from discontinued operations
Net income
Net income attributable to
Owners of the parent
Net income from continuing operations
Net income from discontinued operations
Non-controlling interests
Net income from continuing operations
Net income from discontinued operations

Earnings per share3
Basic earnings per share (Yen)Continuing operations
Discontinued operations
Total basic earnings per share
Diluted earnings per share (Yen)Continuing operations
Discontinued operations
Total diluted earnings per share

52

Six-month period ended
September 30, 2019

Six-month period ended
September 30, 2020

2,539,719(1,224,965)
1,314,754

2,630,531(1,210,719)
1,419,812

729,417579,614(529,328)
15,877215,966(915,426)(140,572)
453,983

1,336,638
117,059
2,033,311(1,011,301)(153,808)
200,830

7,714(761,557)

180,775
55,4791,172,673(591,473)
581,200(457,537)
171,722
1,441,472(272,282)
1,169,190(49,015)532,185

710,187
1,879,377

421,552
462,428(40,876)
110,633
118,772(8,139)532,185

1,883,211
1,172,737
710,474(3,834)(3,547)(287)
1,879,377

215.34(19.68)195.66589.02361.52950.54209.94(19.64)190.30542.35360.71903.06

SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 30, 2020

Notes:
1. Operating results related to Brightstar are newly presented as discontinued operations, separately from continuing operations forthe six-month period ended September 30, 2020 and the three-month period ended September 30, 2020. In order to reflect thesechanges in presentation, similar reclassifications have been made for the six-month period ended September 30, 2019 and thethree-month period ended September 30, 2019. The details are described in “Note 3. Discontinued operations.”
2. Presentation method for the condensed interim consolidated statement of income has been changed from the three-month period
ended June 30, 2020. The details are described in “Note 1. Changes in presentation.”
3. 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,
2020.

Condensed Interim Consolidated Statement of Comprehensive Income(Millions of yen)Six-month period ended
September 30, 2019

Six-month period ended
September 30, 2020

532,185

1,879,377(21,846)
(525)

5,486

(22,371)

5,486

622
36,636825
30,722(595,820)(364,835)

1,030

10,744(557,532)(322,544)(579,903)(47,718)(317,058)
1,562,319

107,198

1,059,869(154,916)

502,450(137,296)

1,563,669(10,081)1,060,932(127,215)

502,737

89,578(47,718)(1,350)1,562,319

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*Comprehensive income from continuing
operations
Comprehensive income from discontinued
operations
Total comprehensive income attributable to*
Owners of the parent
Comprehensive income from continuing
operations
Comprehensive income from discontinued
operations
Non-controlling interests

Note:* The details of discontinued operations are described in “Note 3. Discontinued operations.”

53

SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 30, 2020

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, 2019
September 30, 2020
Continuing operations1
Net sales
Cost of sales
Gross profit
Gain on investments
Loss on investments at Investment Business of Holding
Companies
Gain (loss) on investments at SVF1 and SVF2
Gain on other investments
Total gain on investments
Selling, general and administrative expenses
Finance cost
Income on equity method investments
Derivative gain (loss) (excluding gain (loss) on
investments)
Change in third-party interests in SVF1
Other gain
Income before income tax
Income taxes
Net income from continuing operations
Discontinued operations1
Net income from discontinued operations
Net income
Net income attributable to
Owners of the parent
Net income from continuing operations
Net income from discontinued operations
Non-controlling interests
Net income from continuing operations
Net income from discontinued operations

Earnings per share3
Basic earnings per share (Yen)Continuing operations
Discontinued operations
Total basic earnings per share
Diluted earnings per share (Yen)Continuing operations
Discontinued operations
Total diluted earnings per share

54

1,292,459(634,117)
658,342

1,350,558(628,218)
722,340(496,833)(70,879)(943,747)
9,652(1,430,928)(470,367)(70,784)
362,436

1,040,061
81,2091,050,391(506,727)(76,815)
194,257

5,436(585,732)

365,263
55,440(525,162)(85,759)(610,921)(309,894)
119,532
607,352(20,123)587,229(34,373)(645,294)(24,273)
562,956(700,167)(671,484)(28,683)
54,87360,563(5,690)(645,294)

627,499
651,594(24,095)(64,543)(64,365)(178)
562,956(327.95)(13.85)(341.80)

338.11(12.65)325.46(331.34)(13.85)(345.19)315.62(12.61)303.01

SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 30, 2020

Notes:
1. Operating results related to Brightstar are newly presented as discontinued operations, separately from continuing operations forthe six-month period ended September 30, 2020 and the three-month period ended September 30, 2020. In order to reflect thesechanges in presentation, similar reclassifications have been made for the six-month period ended September 30, 2019 and thethree-month period ended September 30, 2019. The details are described in “Note 3. Discontinued operations.”
2. Presentation method for the condensed interim consolidated statement of income has been changed from the three-month period
ended June 30, 2020. The details are described in “Note 1. Changes in presentation.”
3. 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,
2020.

Condensed Interim Consolidated Statement of Comprehensive Income(Millions of yen)Three-month period ended
September 30, 2019

Three-month period ended
September 30, 2020

(645,294)

562,956(21,846)
(515)

3,539

(22,361)

3,539

56
13,655248
2,097(150,296)(145,744)

9,350

3,216

(127,235)(140,183)(149,596)(794,890)(136,644)
426,312(741,224)

448,231(53,666)(21,919)(844,095)

490,183(801,394)

511,924(42,701)(21,741)

49,205(794,890)(63,871)426,312Net 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*Comprehensive income from continuing
operations
Comprehensive income from discontinued
operations
Total comprehensive income attributable to*
Owners of the parent
Comprehensive income from continuing
operations
Comprehensive income from discontinued
operations
Non-controlling interests

Note:* The details of discontinued operations are described in “Note 3. Discontinued operations.”

55

SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 30, 2020

(3) Condensed Interim Consolidated Statement of Changes in Equity
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

56

SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 30, 2020

(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.

57

SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 30, 2020

For the six-month period ended September 30, 2020
(Millions of yen)

Equity attributable to owners of the parent
Accumulated

As of April 1, 2020
Comprehensive income
Net income
Other comprehensive
incomeTotal comprehensive income
Transactions with owners andother transactions
Cash dividends
Distribution to owners of other
equity instruments
Transfer of accumulated othercomprehensive income toretained earnings
Purchase and disposal of treasury
stock
Changes from loss of control
Changes in interestsin subsidiaries
Changes in associates’interests in their subsidiaries
Changes in interests inassociates’ capital surplus
Share-based paymenttransactions
Transfer of accumulated othercomprehensive income held
for sale
Other
Total transactions with owners
and other transactions
As of September 30, 2020

other
Retained
comprehensive
earnings
Treasury stockincome3,945,820(101,616)(362,259)

Subtotal
5,707,918-

1,883,211--

1,883,211

-

-

-

-

(113,847)(113,847)---

1,883,211-(113,847)

1,769,364---(45,496)--(45,496)---(15,339)--(15,339)

-

-

-

451

-

(451)

-

-

-

-

268

(1,011,656)-(1,011,388)

-

-

-

-

-

-

-

-

914,767

-

-

-

-

914,767-(12,115)

-

-

-

-

(12,115)

-

1,243

-

-

-

-

1,243

-

(6,201)

-

-

-

-

(6,201)

-

-

-

-

-

4,946

4,946

-

-

-

-

-

-

-

-

897,694-(60,116)(1,011,656)

4,495(169,583)

238,772

2,388,019

496,8765,768,915(1,113,272)(471,611)

7,307,699

Commonstock
238,772

Capitalsurplus1,490,325

Other equity
instruments

-

-

-

496,87658

SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 30, 2020

(Millions of yen)

Equity attributable to owners of the parent
Accumulated othercomprehensive income
directly relating to assets
classified as held for sale

As of April 1, 2020
Comprehensive income
Net income
Other comprehensive
incomeTotal comprehensive income
Transactions with owners andother transactions
Cash dividends
Distribution to owners of other
equity instruments
Transfer of accumulated othercomprehensive income toretained earnings
Purchase and disposal of treasury
stock
Changes from loss of control
Changes in interestsin subsidiaries
Changes in associates’interests in their subsidiaries
Changes in interests in associates’
capital surplus
Share-based payment transactions
Transfer of accumulated othercomprehensive income held for
sale
Other
Total transactions with owners
and other transactions
As of September 30, 2020

205,695

Total
5,913,613

Noncontrollinginterests
1,459,304-

1,883,211(3,834)

1,879,377(205,695)(319,542)

2,484(317,058)(205,695)

1,563,669(1,350)1,562,319-(45,496)(93,597)(139,093)-(15,339)-(15,339)

-

-

-

-

-

(1,011,388)-(1,011,388)--(424,653)(424,653)-

914,767

179,369

1,094,136-(12,115)-(12,115)

-

1,243

-

1,243

-

(6,201)(941)(7,142)(4,946)

-

-

-

-

-

(280)

(280)

(4,946)(174,529)(340,102)(514,631)(4,946)

7,302,753

1,117,852

8,420,605

59

Total equity
7,372,917

SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 30, 2020

(4) Condensed Interim Consolidated Statement of Cash Flows(Millions of yen)Six-month period ended
September 30, 2019
Cash flows from operating activities
Net income from continuing operations
Net income from discontinued operations
Net income
Depreciation and amortization
Gain on investments at Investment Business of Holding
Companies
Loss (gain) on investments at SVF1 and SVF2
Finance cost
Income on equity method investments
Derivative (gain) loss (excluding (gain) loss on
investments)
Change in third-party interests in SVF1

Six-month period ended
September 30, 2020

581,200(49,015)532,185
976,346

1,169,190
710,187
1,879,377
411,108(729,417)(975,102)

529,328
303,538(452,734)(1,336,638)
155,652(200,557)(10,338)

761,555(180,775)

457,537

Gain on other investments and other gain

(77,483)(273,687)

Income taxes
Decrease in investments from asset management
subsidiaries
Increase/decrease in derivative financial assets andderivative financial liabilities in asset management
subsidiaries
Increase in restricted cash in asset management
subsidiaries
Increase in securities pledged as collateral in asset
management subsidiaries
Increase in margin deposits in asset management
subsidiaries
Increase in borrowed securities in asset management
subsidiaries(Increase) decrease in trade and other receivables(Increase) decrease in inventories
Decrease in trade and other payables
Gain relating to loss of control over discontinued
operations
Other584,712274,105-

713,091-(289,816)-(105,904)-(213,476)-(244,585)-

434,901(22,289)(152,516)(59,049)

26,126
1,278(82,499)-(721,404)

1,329

112,683

1,242,837

783,745
14,045(132,706)(394,758)
261,541
531,867

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

27,087(296,850)(1,040,058)
440,643
373,659

60

SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 30, 2020

(Millions of yen)Six-month period ended
September 30, 2019

Six-month period ended
September 30, 2020

Cash flows from investing activities
Payments for acquisition of investments(648,393)(3,007,576)

Proceeds from sales/redemption of investments
Payments for acquisition of investments by SVF1 and
SVF2Proceeds from sales of investments by SVF1

128,4852,888,033(1,063,737)(219,962)

40,635

281,456(7,826)(13,552)(38,818)(48,690)

40,844

199,655(635,953)(339,188)(78,355)(132,832)

Collection of loan receivables

46,167

8,276

Other

91,33062,194(2,125,621)(322,186)

553,674

788,983

5,196,627(3,592,775)

3,657,623(3,408,750)

Repayment of lease liabilities(359,112)(214,636)

Contributions into SVF1 from third-party investors
Distribution/repayment from SVF1 to third-party investors
Proceeds from the partial sales of shares of subsidiaries tonon-controlling interests
Purchase of shares of subsidiaries from non-controllinginterests
Distribution to owners of other equity instruments
Purchase of treasury stock

1,356,554(616,690)

764,660(421,464)-

1,526,867(46,651)(1,201)(15,344)(215,941)(15,339)(1,024,068)

Cash dividends paid

(23,162)(45,449)

Cash dividends paid to non-controlling interests(84,386)(93,250)

Other

38,236

77,0952,191,030

1,591,071(38,409)(18,108)-(46,497)

400,659

1,736,147

Cash and cash equivalents at the beginning of the period

3,858,518

3,369,015

Cash and cash equivalents at the end of the period

4,259,177

5,105,162

Payments for acquisition of control over subsidiaries
Payments for acquisition of marketable securities for
short-term trading
Proceeds from sales/redemption of marketable securities
for short-term trading
Purchase of property, plant and equipment, andintangible assets
Payments for loan receivables

Net cash used in investing activities
Cash flows from financing activities
Proceeds in short-term interest-bearing debt, net
Proceeds from interest-bearing debt
Repayment of interest-bearing debt

Net cash provided by financing activities
Effect of exchange rate changes on cash and cash equivalents
Decrease in cash and cash equivalents relating to transfer ofassets classified as held for sale
Increase in cash and cash equivalents

Notes:
1. Cash flows from continuing operations and cash flows from discontinued operations are included. The details are describedin “Note 3. Discontinued operations.”
2. Presentation method for the condensed interim consolidated statement of cash flows has been changed from the three-month
period ended June 30, 2020. The details are described in “Note 1. Changes in presentation.”

61

SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 30, 2020

(5) Significant Doubt about Going Concern Assumption
There are no applicable items.
(6) Notes to Condensed Interim Consolidated Financial Statements
1. Changes in presentation(Condensed interim consolidated statement of income)a. Operating results related to Brightstar are newly presented as discontinued operations, separately from continuing
operations for the six-month period ended September 30, 2020 and the three-month period ended September 30, 2020.
In order to reflect these changes in presentation, similar reclassifications have been made for the six-month period
ended September 30, 2019 and the three-month period ended September 30, 2019. The details are described in “Note 3.
Discontinued operations.”b. SoftBank Group Corp. is a strategic investment holding company that conducts investments and manages
investment portfolios in a number of companies directly (including investments through subsidiaries) or throughinvestment funds (such as SVF1). The Company has been focusing on the investment activities including those led
by SVF1 that began its operation in 2017, thereby transforming business structures.
Following the completion of the merger between Sprint and T-Mobile US, Inc. on April 1, 2020, Sprint has been
no longer a subsidiary of the Company from that date. As a result, the materiality of the investment activities has
increased even further for the overall consolidated financial results of the Company. Consequently, the Company
has revised the presentation of the consolidated statement of income from the three-month period ended June 30,
2020. “Operating income,” as previously presented, did not include gain and loss on investments other than thoseincluded in “Operating income from SoftBank Vision Fund and other SBIA-managed funds.” Therefore, theCompany determined that it was no longer meaningful to appropriately present the consolidated financial results of
the Company as a strategic investment holding company. For these reasons, the Company determined not topresent “Operating income” in the consolidated statement of income from the three-month period ended June 30,
2020.
In connection with this change, the Company also determined to present “Gain (loss) on investments” in the
consolidated statement of income from the three-month period ended June 30, 2020 in order to clearly present
investment performance in the consolidated financial results of the Company. “Gain (loss) on investments”
includes realized gain and loss from sales of investments in financial assets at FVTPL for which investment
performance is measured at fair value, unrealized gain and loss on valuation of investments, dividend income frominvestments, derivative gain and loss relating to financial assets at FVTPL, and realized gain and loss from sales ofinvestments accounted for using the equity method.
Furthermore, the Company determined to present, as component of “Gain (loss) on investments,” “Gain (loss) on
investments at Investment Business of Holding Companies,” “Gain (loss) on investments at SVF1 and SVF2,” and“Gain (loss) on other investments.” Investment Business of Holding Companies segment is included in thereportable segments from the three-month period ended June 30, 2020. The details are described in “Note 4.
Segment information.” Derivative gain and loss other than those mentioned above are presented as “Derivative
gain (loss) (excluding gain (loss) on investments).” In addition, income or loss on equity method investments
arising from recognizing the Company’s share in profit or loss of the investees is presented as “Income on equity
method investments” as previously presented.
In order to reflect these changes in presentation, similar reclassifications have been made to the condensed interim
consolidated statement of income for the six-month period ended September 30, 2019 and the three-month period
ended September 30, 2019. The details of the reclassifications in the condensed interim consolidated statement ofincome for the six-month period ended September 30, 2019 are as follows.

62SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 30, 2020

For the six-month period ended September 30, 2019
(Millions of yen)
Before changes in presentation(after reclassification of discontinued
operations)Continuing operations
Net sales
Cost of sales
Gross profit

Reclassification
amounts

2,539,719(1,224,965)
1,314,754-

After changes in presentation

Continuing operations
2,539,719 Net sales(1,224,965) Cost of sales
1,314,754 Gross profit
Gain (loss) on investments-

729,417

729,417

Gain (loss) on investments at
Investment Business of Holding
Companies-(529,328)(529,328)

Gain (loss) on investments at SVF1
and SVF2-

15,877215,966

15,877
Gain (loss) on other investments
215,966 Total gain (loss) on investments(872,122)(43,304)(915,426)

11,879(11,879)-

2,888(2,888)-Operating income (excluding operating
income from SoftBank Vision Fundand other SBIA-managed funds)

457,399(457,399)-

Operating income from SoftBank
Vision Fund and other
SBIA-managed funds3(572,639)

572,639-(115,240)(140,572)

115,240-(140,572)

451,095

2,888

453,983(5,767)

5,767-(113,930)

121,644

7,714

1,218,527(1,218,527)-(352,198)

352,198-

180,775-

180,775

49,983
1,172,673(591,473)
581,200(49,983)
55,479-Selling, general and administrative
expensesGain relating to loss of control oversubsidiaries1
Other operating income (loss)2

Operating income
Finance cost
Income (loss) on equity method
investments
Foreign exchange gain (loss)4
Derivative gain (loss)5Gain relating to settlement ofvariable prepaid forward contracts
using Alibaba shares6
Gain (loss) from financial
instruments at FVTPL7
Change in third-party interests in
SoftBank Vision Fund and other
SBIA-managed funds
Other non-operating income (loss)8
Income before income tax
Income taxes
Net income from continuing operations
Discontinued operations
Net income from discontinued
operations
Net income(49,015)-532,185-

63

Selling, general and administrative
expensesFinance cost
Income (loss) on equity method
investments
Derivative gain (loss)(excluding gain (loss) on
investments)

Change in third-party interests in
SVF1

55,479Other gain (loss)
1,172,673 Income before income tax(591,473) Income taxes
581,200 Net income from continuing operations
Discontinued operations
Net income from discontinued(49,015)
operations
532,185 Net income

SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 30, 2020

Notes:
1. ¥11,879 million previously presented in “Gain relating to loss of control over subsidiaries” was reclassified as “Other gain
(loss).”
2. Income and loss on equity method investments of ¥2,888 million at Fortress, which was previously presented in “Other
operating income (loss),” was reclassified as “Income (loss) on equity method investments.”
3. Of ¥(572,639) million previously presented in “Operating income from SoftBank Vision Fund and other SBIA-managed
funds,” gain and loss on investments of ¥(529,328) million was reclassified as “Gain (loss) on investments at SVF1 andSVF2,” and other amounts of ¥(43,304) million and ¥(7) million were reclassified as “Selling, general and administrative
expenses” and “Other gain (loss),” respectively.
4. ¥(5,767) million previously presented in “Foreign exchange gain (loss)” was reclassified as “Other gain (loss).”
5. Of derivative gain and loss relating to gain and loss on investments of ¥(121,644) million, which was previously presented
in “Derivative gain (loss),” ¥(119,018) million and ¥(2,626) million were reclassified as “Gain (loss) on investments at
Investment Business of Holding Companies” and “Gain (loss) on other investments,” respectively.
6. ¥1,218,527 million previously presented in “Gain relating to settlement of variable prepaid forward contract using Alibaba
shares” was reclassified as “Gain (loss) on investments at Investment Business of Holding Companies.”
7. Of ¥(352,198) million previously presented in “Gain (loss) from financial instruments at FVTPL,” ¥(370,092) million and¥17,894 million were reclassified as “Gain (loss) on investments at Investment Business of Holding Companies” and “Gain(loss) on other investments,” respectively.
8. Of ¥49,983 million previously presented in “Other non-operating income (loss),” dividend income of ¥609 million wasreclassified as “Gain (loss) on other investments” and other amount of ¥49,374 million was reclassified as “Other gain
(loss).”

64

SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 30, 2020

(Condensed interim consolidated statement of cash flows)
For the six-month period ended September 30, 2019
(Millions of yen)
Reclassification
amounts

Before changes in presentation

Cash flows from operating activities
Net income from continuing
operations
Net income from discontinued
operations
Net income

After changes in presentation

581,200-(49,015)-532,185-

Cash flows from operating activities
Net income from continuing
581,200
operations
Net income from discontinued(49,015)
operations
532,185 Net income

976,346-

976,346(11,879)

11,879--(729,417)(729,417)(Gain) loss on investments at
Investment Business of Holding
Companies

529,328-

529,328(Gain) loss on investments at SVF1
and SVF2

303,538-

303,538(449,846)(2,888)(452,734)

111,306(121,644)(10,338)(1,218,527)

1,218,527-(Gain) loss from financial
instruments at FVTPL5

351,781(351,781)-

Change in third-party interests in
SoftBank Vision Fund and other
SBIA-managed funds(180,775)-(180,775)

Foreign exchange (gain) loss andother non-operating (income) loss6(49,926)

49,926--(77,483)(77,483)

584,712-584,712(22,289)-(152,516)-(59,049)-(1,552)
1,242,837

2,881-

Depreciation and amortization(Gain) relating to loss of control
over subsidiaries1(Gain) loss on investments at
SoftBank Vision Fund and other
SBIA-managed funds
Finance cost
(Income) loss on equity method
investments
Derivative (gain) loss3(Gain) relating to settlement ofvariable prepaid forward contract
using Alibaba shares4

Income taxes(Increase) decrease in trade and otherreceivables(Increase) decrease in inventories
Increase (decrease) in trade and otherpayablesOther2
Subtotal

Depreciation and amortization

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

Change in third-party interests in
SVF1(Gain) loss on other investments andother (gain) loss

Income taxes(Increase) decrease in trade and other(22,289)
receivables(152,516)(Increase) decrease in inventories
Increase (decrease) in trade and other(59,049)
payables
1,329
Other
1,242,837 Subtotal

Notes:
1. ¥(11,879) million previously presented in “(Gain) relating to loss of control over subsidiaries” was reclassified as“(Gain) loss on other investments and other (gain) loss.”
2. Income and loss on equity method investments of ¥(2,888) million at Fortress, which was previously included in“Other,” was reclassified as “(Income) loss on equity method investments.”
3. Of derivative gain and loss relating to gain and loss on investments of ¥121,644 million, which was previously
presented in “Derivative (gain) loss,” ¥119,018 million and ¥2,626 million were reclassified as “(Gain) loss on
investments at Investment Business of Holding Companies” and “(Gain) loss on other investments and other (gain)
loss,” respectively.

65

SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 30, 2020

4. ¥(1,218,527) million previously presented in “Gain relating to settlement of variable prepaid forward contract using
Alibaba shares” was reclassified as “(Gain) loss on investments at Investment Business of Holding Companies.”
5. Of ¥351,781 million previously presented in “’(Gain) loss from financial instruments at FVTPL,” ¥370,092 million and¥(18,311) million were reclassified as “(Gain) loss on investments at Investment Business of Holding Companies” and“(Gain) loss on other investments and other (gain) loss,” respectively.
6. ¥(49,926) million previously presented in “Foreign exchange (gain) loss and other non-operating (income) loss” wasreclassified as “(Gain) loss on other investments and other (gain) loss.”

2. Significant accounting policies
Significant accounting policies applied to the condensed interim consolidated financial statements are the same as
the accounting policies applied to the consolidated financial statements for the fiscal year ended March 31, 2020,
except for the following. In addition, income taxes for the six-month period ended September 30, 2020 are
calculated based on the estimated effective tax rate for the fiscal year.
(1) Significant accounting policies for the SVF1 and Other SBIA-Managed Funds segment
For SVF1 and SVF2, the Company applies the following accounting policies.
a. Consolidation of SVF1 and SVF2 by the Company
SVF1 and SVF2 are limited partnerships established by its general partner which is a wholly-owned subsidiary of
the Company, and by its form of organization, qualifies as a structured entity. SVF1 and SVF2 are consolidated by
the Company for the following reasons.
The various entities comprising SVF1 and SVF2 make investment decisions through its investment committee,
which was established as a committee of SBIA. SBIA is an advisory company and is a wholly-owned subsidiary of
the Company. As such, the Company has power as defined under IFRS 10 “Consolidated Financial Statements”
over SVF1 and SVF2. Furthermore, SBIA receives performance fees and the Company receives distributions
attributable to limited partners based on the investment performance as returns from SVF1 and SVF2. The
Company has the ability to affect those returns through its power over SVF1 and SVF2, and therefore, the Company
is deemed to have control as stipulated in IFRS 10 over SVF1 and SVF2.
Inter-company transactions such as management fees and performance fees to SBIA paid or to be paid from SVF1
and SVF2 are eliminated in consolidation.
b. Portfolio company investments made by SVF1 and SVF2(a) Investments in subsidiaries
Of the portfolio company investments made by SVF1, the portfolio companies that the Company is deemed tocontrol under IFRS 10 are subsidiaries of the Company. Accordingly, their results of operations, assets andliabilities 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 SVF1 are eliminatedin consolidation.
(b) Investments in associates and joint ventures
Of the portfolio company investments made by SVF1 and SVF2, the portfolio companies over which theCompany has significant influence under IAS 28 “Investments in Associates and Joint Ventures” are associatesof the Company, and the portfolio companies that are joint ventures of SVF1 and SVF2 when, as defined under
IFRS 11 “Joint Arrangements,” SVF1 and SVF2 have joint control with other investors under contractual
arrangements and the investors have rights to the net assets of the arrangement.
The investments in associates and joint ventures of the Company made by SVF1 and SVF2 are accounted for as
financial assets at FVTPL in accordance with paragraph 18 of IAS 28, and presented as “Investments from
SVF1 and SVF2 accounted for using FVTPL” in the condensed interim consolidated statement of financial
position. The payments for these investments are presented as “Payments for acquisition of investments by66

SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 30, 2020

SVF1 and SVF2” and the proceeds from sales of these investments are presented as “Proceeds from sales ofinvestments by SVF1” 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 SVF1 and SVF2 are
accounted for as financial assets at FVTPL. The presentation of these investments in the condensed interim
consolidated statement of financial position and the condensed interim consolidated statement of cash flows are
the same as the above “(b) Investments in associates and joint ventures.”c. Contribution from limited partners to SVF1 and SVF2
SVF1 and SVF2 issues capital calls to its limited partners (“Capital Call”).
No contributions from limited partners other than the Company were made into SVF2 from inception to September
30, 2020.
(a) Contribution from limited partners other than the Company
The interests attributable to limited partners other than the Company (“Third-Party Investors”) are classified as
financial liabilities, “Third-party interests in SVF1” in the condensed interim consolidated statement of financial
position, due to the predetermined finite life and contractual payment provision to each of the limited partners at
the end of the finite life within the limited partnership agreement. The liabilities are classified as “financial
liabilities measured at amortized cost” upon initial recognition. The carrying amounts attributable to Third-Party
Investors represent the amounts that would be distributed in accordance with the limited partnership agreement
in a theoretical liquidation scenario at the end of each quarter.
“Third-party interests in SVF1” fluctuates due to the results of SVF1 in addition to contributions fromThird-Party Investors in satisfaction of Capital Call, and distributions and repayments of investments toThird-Party Investors. The fluctuations due to the results of SVF1 are presented as “Change in third-party
interests in SVF1” in the condensed interim consolidated statement of income.
Contributions from Third-Party Investors to SVF1 are included in “Contributions into SVF1 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 to Third-Party Investors are included in“Distribution/repayment from SVF1 to third-party investors” under cash flows from financing activities in thecondensed interim consolidated statement of cash 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
Contributions from the Company as limited partners are eliminated in consolidation.

(2) Significant accounting policies for the asset management subsidiary
SB Northstar, a subsidiary of the Company, is engaged in various transactions such as acquisition and sale of listed
stocks, derivative transactions related to listed stocks, and credit transactions for diversification of the assets held
and management of surplus funds. “The asset management subsidiary” described in the condensed interim
consolidated financial statements and the notes indicates SB Northstar.
For SB Northstar, the Company applies the following accounting policies.
a. Investments from the asset management subsidiary
The investments made by SB Northstar (except for investments in associates) are accounted for as financial assets
at FVTPL as the investments meet the definition of financial assets held for sale in accordance with IFRS 9 andpresented as “Investments from assets management subsidiaries” under current assets in the condensed interim
consolidated statement of financial position. At initial recognition, the investments are measured at fair value andtransaction costs directly arising from the acquisition of financial assets are recognized as net of profit and loss.
Subsequent to initial recognition, they are measured at fair value and valuation gain and loss arising from changes
in fair value and dividend income are included in “Gain (loss) on investments at Investment Business of Holding

67SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 30, 2020

Companies” in the condensed interim consolidated statement of income. In addition, the changes in investment
amounts due to acquisition and sale of investments from SB Northstar are presented as net of “(Increase) decrease
in investments from asset management subsidiaries (cash flows from operating activities)” in the condensed
interim consolidated statement of cash flows. The investments in associates of the Company made by SB Northstar
are accounted for using the equity method and included in “Investments accounted for using the equity method” inthe condensed interim consolidated statement of financial position.
b. Restricted cash
Restricted cash in SB Northstar is the deposit pledged as collateral to the brokers for acquisition transactions ofinvestments using borrowings and credit transactions and its usage is restricted. The restricted cash is included in“Other financial assets (current)” in the condensed interim consolidated financial position and presented as net of“(Increase) decrease in restricted cash in asset management subsidiaries (cash flows from operating activities)” in
the condensed interim consolidated statement of cash flows.
c. Securities pledged as collateral
Of securities pledged as collateral, securities which the recipient can sell or pledge them as re-collateral are
separated from “Investments from asset management subsidiaries” and included in “Other financial assets(current)” in the condensed interim consolidated statement of financial position. In addition, the securities pledged
as collateral in SB Northstar are presented as net of “(Increase) decrease in securities pledged as collateral in asset
management subsidiaries (cash flows from operating activities)” in the condensed interim consolidated statementof cash flows.
d. Margin deposits
Margin deposits in SB Northstar are the deposits pledged as collateral for unsettled balance for acquisition and saleof investments and unsettled derivatives to the brokers and are included in “Other financial assets (current)” in thecondensed interim consolidated statement of financial position. At initial recognition, they are measured at fairvalue and subsequent to initial recognition, they are measured at amortized cost. In addition, margin deposits in SB
Northstar are presented as net of “(Increase) decrease in margin deposits in asset management subsidiaries (cashflows from operating activities)” in the condensed interim consolidated statement of cash flows.
e. Borrowed securities
The securities borrowed for short credit transactions have obligations for delivery of future financial assets andmeet the definition of financial liabilities held for sale in accordance with IFRS 9. Therefore, they are accounted
for as financial instruments at FVTPL and included in “Other financial liabilities (current)” in the condensed
interim consolidated statement of financial position. At initial recognition and subsequent to initial recognition,
they are measured at fair value and valuation gain and loss arising from changes in fair value are included in “Gain(loss) on investments at Investment Business of Holding Companies” in the condensed interim consolidated
statement of income. In addition, borrowed securities in SB Northstar are presented as net of “Increase (decrease)in borrowed securities in asset management subsidiaries (cash flows from operating activities)” in the condensed
interim consolidated statement of cash flows.

68SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 30, 2020

3. Discontinued operations(1) Sprint
As of March 31, 2020, it was highly probable that Sprint would merge with T-Mobile US, Inc. and would no longer
be a subsidiary of the Company. Accordingly, assets, liabilities, and accumulated other comprehensive income of
Sprint were reclassified as a disposal group classified as held for sale. The disposal group classified as held for sale
was measured at the carrying amount as the fair value of T-Mobile US, Inc. shares which the Company acquired
from the merger transaction was higher than the carrying amount of Sprint shares.
On April 1, 2020, the merger of Sprint and T-Mobile US, Inc. was completed under the business combinationagreement which the Company entered into with the parties, including Sprint, T-Mobile US, Inc. and Deutsche
Telekom AG (“Deutsche Telekom”) on April 29, 2018 (EST) (“Business Combination Agreement,” which waspreviously amended by an amendment dated July 26, 2019 and February 20, 2020).
Under the merger transaction, Starburst I, Inc. which held Sprint shares and Galaxy Investment Holdings, Inc. weremerged with and into Huron Merger Sub LLC, a U.S. subsidiary of T-Mobile US, Inc. and directly owned by
T-Mobile US, Inc., with Huron Merger Sub LLC as the surviving company. In addition, Superior Merger Sub Corp.,
a U.S. subsidiary of Huron Merger Sub LLC and directly owned by Huron Merger Sub LLC, was merged with andinto Sprint, with Sprint as the surviving company. As a result of the transactions, Sprint became a wholly-owned
subsidiary of T-Mobile which was a new company after the merger and owned Sprint indirectly.
As a result, Sprint was no longer a subsidiary of the Company and T-Mobile became an equity method associate of
the Company from that date. The difference between the total fair value less costs to sell as of April 1, 2020 for
acquired T-Mobile shares as consideration of the merger transaction and acquiring shares when certain contingency
is satisfied (the “contingent consideration”), and the carrying amount of Sprint (assets, liabilities, accumulated othercomprehensive income, and non-controlling interests in Sprint) was recorded as gain relating to loss of control forthe six-month period ended September 30, 2020. In addition, the carrying amount of non-controlling interests in
Sprint at the time of loss of control over Sprint is ¥424,746 million.
The Company surrendered to T-Mobile an aggregate of 48,751,557 shares of T-Mobile common stock, of the353,357,606 shares to be received from the Transaction, effective immediately following the closing of theTransaction. If the trailing 45-day volume-weighted average price per share of T-Mobile common stock on the
NASDAQ Global Select Market is equal to or greater than $150 at any time during the period commencing on thesecond anniversary of the closing date and ending on December 31, 2025, T-Mobile will re-issue to the Company,
for no additional consideration, a number of shares of T-Mobile common stock equal to the abovementioned numberof shares to be surrendered, subject to the terms and conditions included as part of the Business Combination
Agreement.
The Company recognizes the fair value of the contingent consideration as “Derivative financial assets (non-current)”
in the condensed interim consolidated statement of financial position and ¥196,313 million is recorded as of theacquisition date. In addition, changes in the fair value after the acquisition date is recognized as “Gain on
investments at Investment Business of Holding Companies” in the condensed interim consolidated statement ofincome.
Operating results related to Sprint for the six-month period ended September 30, 2019 and gain relating to loss ofcontrol over Sprint for the six-month period ended September 30, 2020 are presented as discontinued operations,separately from continuing operations, in the condensed interim consolidated statement of income.
In addition, of 304,606,049 shares of T-Mobile common stock held, 173,564,426 shares were transferred by theCompany on June 26, 2020. As a result of the transaction, due to the decrease in voting rights ratio resulted from theshare transfer, the Company had no significant influence over T-Mobile and T-Mobile was no longer considered as
an equity method associate of the Company. The details are described in “Note 20. Additional information.”

69

SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 30, 2020a. Disposal group classified as held for sale(Millions of yen)

As ofMarch 31, 2020

As of
September 30, 2020

Assets classified as held for sale
Cash and cash equivalents

240,982-

Trade and other receivables

385,511

-

7,166

-

Other financial assets
Inventories

97,712-Other current assets

131,240-

Total current assets

862,611-

1,890,600-

763,529-

Property, plant and equipment
Right-of-use assets
Goodwill

322,978-

5,082,956-

Costs to obtain contracts
Investments accounted for using the equity
methodInvestment securities

196,438

-

3,049

-

3,225

-

Other financial assets

47,140-

Other non-current assets

63,522-

Total non-current assets

8,373,437-

Total assets

9,236,048-

331,881-

Lease liabilities

202,743-

Trade and other payables

395,415-

Income taxes payables

1,949

-

Provisions

8,720

-

Other current liabilities

292,041-

Total current liabilities

1,232,749-

Interest-bearing debt

3,591,777-583,348-

Derivative financial liabilities

5,189

-

Other financial liabilities

4,298

-

Provisions

81,261-

Deferred tax liabilities

746,834-

Other non-current liabilities

209,515-

Total non-current liabilities

5,222,222-

Total liabilities

6,454,971-

Intangible assets

Liabilities directly relating to assets classified asheld for saleInterest-bearing debt

Lease liabilities

70SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 30, 2020

(Millions of yen)

As ofMarch 31, 2020
Accumulated other comprehensive income directly
relating to assets classified as held for sale
Cash flow hedges
Exchange differences on translating foreign
operations
Total accumulated other comprehensive income

As of
September 30, 2020

(3,454)-

209,149-

205,695-

Six-month period ended
September 30, 2019
1,656,013(1,038,009)

Six-month period ended
September 30, 2020-

Selling, general and administrative expenses(442,388)-

Finance cost

(159,096)-

Other
Income from discontined operations before
income tax
Income taxes
Income from discontined operations after income
tax
Income relating to loss of control overdiscontined operations1,2(65,063)-(48,543)

-

8,362

-

(40,181)--

721,404

Net income from discontinued operations(40,181)

721,404

Net income from discontinued operations
Other comprehensive income from discontinued
operations
Comprehensive income from discontinued
operations(40,181)

721,404(104,771)(205,694)(144,952)

515,710b. Results of operations from discontinued operations(Millions of yen)

Net sales
Cost of sales-

Notes:
1. Tax expense is presented as zero in the condensed interim consolidated statement of income because the expected
taxable income at SoftBank Group Corp. will not be material for the fiscal year despite income related to discontinued
operations for the acquired contingent consideration at the time of the merger between Sprint and T-Mobile US, Inc.
was generated at SoftBank Group Corp.
2. The Company may indemnify T-Mobile and its subsidiaries against any losses incurred by Sprint and its subsidiaries dueto the cessation of T-Mobile’s and its subsidiaries’ access to the frequencies of Sprint and its subsidiaries under certain
circumstances based on the Business Combination Agreement, which the Company entered into with the parties,
including Sprint, T-Mobile US, Inc., and Deutsche Telekom, in principle. It was probable that the Company would
indemnify the losses incurred. Accordingly, ¥25,392 million, which was reasonably estimated as of September 30, 2020,
was recorded as provisions for the six-month period ended September 30, 2020. The provisions for allowance andexpenses arising from the merger transaction are included in gain relating to loss of control under discontinued
operations.

71SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 30, 2020c. Cash flows from discontinued operations(Millions of yen)

Cash flows from operating activities

Six-month period ended
September 30, 2019357,690

Six-month period ended
September 30, 2020
(20,843)

Cash flows from investing activities(283,379)-

Cash flows from financing activities(371,916)-(297,605)(20,843)

The disposal of Sprint shares as of April 1, 2020 was conducted as a share exchange with T-Mobile shares and arecorrespond to non-cash transaction.
(2) Brightstar
On September 17, 2020, the Company has entered into a definitive agreement with Brightstar Capital Partners, inorder to sell all of its shares in Brightstar to a newly formed subsidiary of Brightstar Capital Partners.
Upon this agreement, it is highly probable that Brightstar will no longer be a subsidiary of the Company at thecompletion of the transaction. Accordingly, assets, liabilities, and accumulated other comprehensive income of
Brightstar are reclassified as a disposal group classified as held for sale. Brightstar is measured at the fair value lesscosts to sell (expected sale price) as the fair value less costs to sell is lower than the carrying amount of Brightstar.
As a result, the Company recorded an impairment loss on goodwill for ¥12,423 million.
Operating results related to Brightstar are presented as discontinued operations, separately from continuing
operations, in the condensed interim consolidated statement of income. Also the above impairment loss on goodwill
is presented as discontinued operations.
In addition, on October 22, 2020, the sale of all shares in Brightstar was completed. The consideration consists ofcash proceeds of $685 million and a 25% stake (equivalent to $90 million) in a newly formed subsidiary of
Brightstar Capital Partners, which holds all shares in Brightstar.
As a result, Brightstar is no longer a subsidiary of the Company and becomes an associate from that date, however
the acquired shares are preferred stock investments whose feature is substantially different from common stock,
therefore the preferred stock is measured at fair value and accounted for as financial instruments at FVTPL.

72

SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 30, 2020a. Disposal group classified as held for sale(Millions of yen)

As ofMarch 31, 2020

As of
September 30, 2020

Assets classified as held for sale
Cash and cash equivalents-

46,497

Trade and other receivables-

61,382Other financial assets-

11,535Inventories-

42,631Other current assets-

10,005

Total current assets-

172,050

Property, plant and equipment

-

2,430

Right-of-use assets

-

6,636

Goodwill-

7,008

Intangible assets-

18,836

Costs to obtain contracts
Investments accounted for using the equity
methodInvestment securities

-

295

-

1,107

-

280

Other financial assets

-

4,332

Deferred tax assets

-

1,568

Other non-current assets

-

1,626

Total non-current assets-

44,118

Total assets-

216,168-

11,838

Liabilities directly relating to assets classified asheld for saleInterest-bearing debt
Lease liabilities

-

1,512

Trade and other payables-

91,233

Derivative financial liabilities-

7

Other financial liabilities-

907

Income taxes payables

-

2,754

Provisions

-

1,807

Other current liabilities-

14,730Total current liabilities-

124,788

Interest-bearing debt-

111

Lease liabilities

-

5,707

Other financial liabilities-

515

Provisions-

893

Deferred tax liabilities

-

1,916

Other non-current liabilities-

864

Total non-current liabilities-

10,006

Total liabilities-

134,79473

SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 30, 2020

(Millions of yen)

As ofMarch 31, 2020

As of
September 30, 2020

Accumulated other comprehensive income directly
relating to assets classified as held for saleExchange differences on translating foreign
operations
Other

-

(4,884)-(62)

Total accumulated other comprehensive income-(4,946)Six-month period ended
September 30, 2019455,992(434,526)

Six-month period ended
September 30, 2020
289,143

Selling, general and administrative expenses(24,247)(16,374)

Finance cost

(3,870)(1,844)(582)(15,365)(7,233)(9,394)(1,601)(1,823)(8,834)(11,217)

Net income from discontinued operations(8,834)(11,217)

Net income from discontinued operations
Other comprehensive income from discontinued
operations
Comprehensive income from discontinued
operations(8,834)(11,217)(1,130)(2,043)(9,964)(13,260)

b. Results of operations from discontinued operations(Millions of yen)

Net sales
Cost of sales

Other
Income from discontined operations before
income tax
Income taxes
Income from discontined operations after income
tax(264,954)

c. Cash flows from discontinued operations(Millions of yen)

Cash flows from operating activities

Six-month period ended
September 30, 201935,280Six-month period ended
September 30, 2020
38,706

Cash flows from investing activities(525)(4,807)

Cash flows from financing activities(33,463)(1,475)

1,292

32,42474

SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 30, 2020

4. 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, 2020, the Company had four reportable segments: the SoftBank Vision Fundand Other SBIA-Managed Funds segment, the SoftBank segment, the Arm segment, and the Brightstar segment.
Following the completion of the merger between Sprint and T-Mobile US, Inc. on April 1, 2020, Sprint has been
no longer a subsidiary of the Company from that date. As a result, the materiality of the investment activities has
increased even further for the overall consolidated financial results of the Company. Consequently, businesssegments that are regularly reviewed by the Company’s Board of Directors have been changed. As a result of thechange, from the three-month period ended June 30, 2020, the Company has revised its segment classifications
and the Investment Business of Holding Companies segment has been added to the reportable segments. In
addition, from the three-month period ended September 30, 2020, the Company has entered into a definitive
agreement with Brightstar Capital Partners, in order to sell all of its shares in Brightstar held by the Company to a
newly formed subsidiary of Brightstar Capital Partners. It is highly probable that Brightstar will no longer be a
subsidiary of the Company. As a result, Brightstar has been classified as discontinued operations and theBrightstar segment is excluded from the reportable segments.
Accordingly, from the three-month period ended September 30, 2020, the Company has four reportablesegments: the Investment Business of Holding Companies segment, the SoftBank Vision Fund and Other
SBIA-Managed Funds segment, the SoftBank segment, and the Arm segment. The SoftBank Vision Fund andOther SBIA-Managed Funds segment was renamed to the SVF1 and Other SBIA-Managed Funds segment fromthe three-month period ended September 30, 2020.
The Investment Business of Holding Companies segment conducts, mainly through SoftBank Group Corp. as a
strategic investment holding company, investment activities in a wide range of sectors in Japan and overseas
directly or through subsidiaries of the Company. The Investment Business of Holding Companies segment
consists of SoftBank Group Corp., SoftBank Group Capital Limited, SoftBank Group Japan Corporation(“SBGJ”), SB Northstar that is an asset management subsidiary, and certain subsidiaries of the Company that
conduct investment or funding. SB Northstar is engaged in various transactions such as acquisition and sale oflisted stocks, derivative transactions related to listed stocks, and credit transactions for diversification of theassets held and management of surplus funds. Gain and loss on investments at Investment Business of Holding
Companies consists of gain and loss arising from investments held directly by SoftBank Group Corp. or throughsubsidiaries of the Company. However, gain and loss on investments relating to investments in subsidiaries
including dividend income from subsidiaries and impairment loss on investments in subsidiaries are excluded.
The SVF1 and Other SBIA-Managed Funds segment conducts, mainly through SVF1 and SVF2, investment
activities in a wide range of technology sectors. Gain and loss on investments at SVF1 and SVF2 consist of gain
and loss arising from investments held by SVF1 and SVF2 including the investment in the Company’s
subsidiary.
The SoftBank segment provides, mainly through SoftBank Corp., mobile communications services, sale ofmobile devices, fixed-line telecommunication services such as broadband services in Japan, and through Z
Holdings Corporation, internet advertising and e-commerce business.
The Arm segment provides, through Arm, designs of microprocessor intellectual property and related technology,
the sale of software tools, and software services.
Information on business segments which are not included in the reportable segments is classified in “Other.”“Other” includes mainly PayPay Corporation, Fortress, the investment fund business in Latin America, and the
Fukuoka SoftBank HAWKS-related operations.

75

SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 30, 2020

“Reconciliations” includes an elimination of intersegment transactions, as well as an elimination of gain and loss
on the investment in shares in Arm, a subsidiary of the Company, which are included in segment income of the
SVF1 and other SBIA-Managed Funds and an elimination of income on equity method investments recognized
relating to PayPay Corporation, which is included in segment income of the Softbank segment. Such income onequity method investments is eliminated because the Company consolidates PayPay Corporation as its subsidiaryand related amounts are also included in “Other.”Segment information for the six-month period ended September 30, 2019 and for the three-month period ended
September 30, 2019 is presented based on the reportable segments after the aforementioned change.
(2) Net sales and income of reportable segments
Income of reportable segments is defined as “Income before income tax.” In accordance with the change inpresentation of the consolidated statement of income where “Operating income” is no longer presented, which
has been implemented from the three-month period ended June 30, 2020, income of reportable segments to bereported to the Company’s Board of Directors in order to make decisions about the allocation of resources andassess its performance has been changed from “Operating income” to “Income before income tax.” The details
are described in “Note 1. Changes in presentation.” As in the consolidated statement of income, “Gain (loss) on
investments” included in segment income includes realized gain and loss from sales of investments in financial
assets at FVTPL for which investment performance is measured at fair value, unrealized gain and loss on
valuation of investments, dividend income from investments, derivative gain and loss relating to investments infinancial assets at FVTPL, and realized gain and loss from sales of investments accounted for using the equity
method. The Investment Business of Holding Companies segment calculates its segment income by eliminating
gain and loss on investments relating to investments in subsidiaries, including dividend income from subsidiaries
and impairment loss on investments in subsidiaries.
Intersegment transaction prices are determined under the same general business conditions as applied for externalcustomers.

76SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 30, 2020

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

Reportable segments
Investment Business of
Holding Companies

SVF1 and Other
SBIA-Managed Funds

SoftBank

Arm

Net sales
Customers--

Intersegment

-

-

3,712

185

Total

-

-

2,373,300

88,545

Segment income
Depreciation andamortization
Gain (loss) on investments

1,095,784(400,034)

518,448(20,820)

(851)

(127)

(330,859)(35,054)

729,417(529,328)

7,900

183

Finance cost
Income (loss) on equity
method investments
Derivative gain (loss)(excluding gain (loss) on
investments)(97,177)(9,224)(28,575)(605)

453,697-(14,181)

223

7,379

-

(56)

-

Total
Net sales
Customers
Intersegment

Other

2,369,588

Reconciliations

88,360Consolidated

2,457,948

81,771-2,539,719

3,897

10,142(14,039)-

Total

2,461,845

91,913(14,039)2,539,719

Segment income
Depreciation andamortization
Gain (loss) on investments

1,193,378(40,796)

20,091

1,172,673(366,891)(19,362)-(386,253)

208,172

7,794-

215,966

Finance cost
Income (loss) on equity
method investments
Derivative gain (loss)(excluding gain (loss) on
investments)(135,581)(7,161)

2,170(140,572)

439,739338

13,906453,983

7,323

391

-

7,714

77

SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 30, 2020

For the six-month period ended September 30, 2020
(Millions of yen)

Reportable segments
Investment Business of
Holding Companies

SVF1 and Other
SBIA-Managed Funds*

SoftBank

Arm

Net sales
Customers--

Intersegment

-

-

4,723

326

Total

-

-

2,427,767

105,997

25,348913,989533,284(24,819)

(975)

(266)

(348,009)(36,766)

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

2,423,044

105,671579,614

1,411,567(6,043)-(108,175)(6,228)(32,920)(419)

194,607-(17,129)

1,677(762,417)

-

(42)

1,152

Total

Other

Reconciliations

Consolidated

Net sales
Customers

2,528,715

101,816

-

5,049

4,312

(9,361)-

Total

2,533,764

106,128(9,361)2,630,531

Segment income
Depreciation andamortization
Gain (loss) on investments

1,447,802

52,999(59,329)

1,441,472(386,016)(21,332)-(407,348)

1,985,138

123,102(74,929)

2,033,311(147,742)(8,005)

1,939(153,808)

179,155

6,908

14,767200,830(761,307)

(250)

-

(761,557)

Intersegment

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

2,630,531

Note:* The details of the difference between “Gain (loss) on investments” in the SVF1 and Other SBIA-Managed Funds segment
and “Gain (loss) on investments at SVF1 and SVF2” in the condensed interim consolidated statement of income aredescribed in “Note 5. SVF1 and other SBIA-managed funds business.”78SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 30, 2020

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

Reportable segments
Investment Business of
Holding Companies

SVF1and Other
SBIA-Managed Funds

SoftBank

Arm

Net sales
Customers--

1,206,660

42,517

Intersegment

-

-

2,054

97

Total

-

-

1,208,714

42,614

Segment income
Depreciation andamortization
Gain (loss) on investments(151,396)(612,098)

256,752(9,647)

(387)

(75)

(165,910)(17,137)(496,833)(943,747)(1,473)

128

Finance cost
Income (loss) on equity
method investments
Derivative gain
(excluding gain (loss) on
investments)(46,066)(7,323)(14,562)(303)

364,814-(10,723)

145

5,266

-

24

-

Total
Net sales
Customers
Intersegment

Other

1,249,177

Reconciliations

Consolidated

43,282-

1,292,459

2,151

5,733

(7,884)-

Total

1,251,328

49,015(7,884)

1,292,459

Segment income
Depreciation andamortization
Gain (loss) on investments(516,389)(17,686)

8,913(525,162)(183,509)(9,611)-(193,120)(1,441,925)

10,997-(1,430,928)(68,254)(3,805)

1,275(70,784)354,236

(981)

9,181

362,436

5,290

146

-

5,436

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

79SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 30, 2020

For the three-month period ended September 30, 2020
(Millions of yen)

Reportable segments
Investment Business of
Holding Companies

SVF1 and Other
SBIA-Managed Funds

SoftBank

Arm

Net sales
Customers--

Intersegment

-

-

2,056

110

Total

-

-

1,255,445

56,795

Segment income
Depreciation andamortization
Gain (loss) on investments(433,549)

784,359

274,035(11,479)

(520)

(116)

(174,875)(18,468)(70,879)

1,114,990(10,159)-

Finance cost
Income (loss) on equity
method investments
Derivative gain (loss)(excluding gain (loss) on
investments)(55,025)(1,628)(16,664)(206)

190,504-(8,123)964(586,227)

-

(43)

815

Total

Other

1,253,389

Reconciliations

56,685

Consolidated

Net sales
Customers
Intersegment
Total
Segment income
Depreciation andamortization
Gain (loss) on investments
Finance cost
Income (loss) on equity
method investments
Derivative gain (loss)(excluding gain (loss) on
investments)

1,310,074

40,484-1,350,558

2,166

2,290

(4,456)-

1,312,240

42,774(4,456)1,350,558

613,366

61,688(67,702)607,352(193,979)(8,525)-(202,504)

1,033,952

91,368(74,929)

1,050,391(73,523)(4,135)843(76,815)

183,345

4,099

6,813

194,257(585,455)

(277)

-

(585,732)

80SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 30, 2020

5. SVF1 and other SBIA-managed funds business(1) Income and loss arising from the SVF1 and other SBIA-managed funds businessa. Overview
Segment income arising from the SVF1 and other SBIA-managed funds business (income before income tax)
represents the net profits of the SVF1 and other SBIA-managed funds business, after deducting the net profits
attributable to Third-Party Investors. The net profits attributable to Third-Party Investors are the amount after
deducting management fees and performance fees that SBIA receives from SVF1.
The amount of the net profits attributable to Third-Party Investors that is deducted from the segment income ispresented as “Change in third-party interests in SVF1.”

b. Segment income arising from the SVF1 and other SBIA-managed funds business
The components of segment income arising from the SVF1 and other SBIA-managed funds business are as follows:(Millions of yen)

Gain (loss) on investments at SVF1 and SVF2
Realized gain on sales of investments
Unrealized gain (loss) on valuation of
investments
Change in valuation for the fiscal year1
Reclassified to realized loss recorded in thepast fiscal year2
Dividend income from investments
Derivative gain on investments
Effect of foreign exchange translation3
Selling, general and administrative expenses
Finance cost (interest expenses)
Change in third-party interests in SVF1
Other gain
Segment income arising from the SVF1 and other
SBIA-managed funds business (income before
income tax)

Six-month period ended
September 30, 2019

Six-month period ended
September 30, 2020

34,805

141,385(537,932)

1,342,001(35,788)(81,409)

8,337
1,250
(529,328)(43,004)

4,623
1,091
3,876
1,411,567(34,430)(9,224)(6,228)

180,775(457,537)

747

617

(400,034)

913,989

Notes:
1. In September 2020, the Company entered into a definitive agreement with NVIDIA Corporation in order to sell allof its shares in Arm, a subsidiary of the Company, held by the Company (including shares held by SVF1).
Given entry into the definitive agreement, SVF1 recorded ¥74,929 million of unrealized gain for the six-month
period ended September 30, 2020 upon the fair value estimation of Arm held by SVF1.
The unrealized gain arising from Arm shares held by SVF1 is included in “Gain (loss) on investments at SVF1 and
SVF2” (in Change in valuation for the fiscal year under Unrealized gain (loss) on valuation of investments) in theabove-mentioned segment income. However, as Arm is a subsidiary of the Company, the unrealized gain iseliminated in consolidation and is not included in “Gain (loss) on investments at SVF1 and SVF2” in the condensed
interim consolidated statement of income.
2. It represents the unrealized gain and loss on valuation of investments recorded as “Gain (loss) on investments at
SVF1 and SVF2” in the past fiscal years, which are reclassified to realized gain and loss on sales of investments
due to the sales of the shares.
3. Unrealized gain and loss on investments are translated using the average exchange rate for the quarter in which thegain and loss were recognized, while realized gain and loss on disposal of investments are translated using the81SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 30, 2020

average exchange rate for the quarter in which the shares were disposed. Foreign currency translation effects are
arising from the different foreign currency exchange rates used for unrealized gain and loss and realized gain andloss.

(2) Third-party interests in SVF1
a. 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 andconditions 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 SVF1. Those performance-based
distributions and performance fees attributed to SBIA will be allocated using the method specified in the limited
partnership agreement. The amount of performance-based distribution attributed to limited partners will beallocated to each limited partner based on the proportion of their respective Equity contribution. The amount of
performance-based distributions is paid to each limited partner after SVF1 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 contributions. The fixed distributions are made every last business day of the months Juneand December.
In the following table, Third-Party Investors contributing Equity are defined as “Investors entitled to performancebased 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 SVF1” included in thecondensed interim consolidated statement of financial position) 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 and noncurrent liabilities)

Consolidated statement Consolidated statementof incomeof cash flows(Negative figures represent (Negative figures represent
expenses)
payments)(Breakdown)
As of April 1, 2020
Contributions from third-party
investors
Changes in third-party interests
Attributable to investors entitled to
fixed distribution
Attributable to investors entitled toperformance-based distribution
Distribution/repayment to third-party
investors
Exchange differences on translating
third-party interests*

4,584,419

As of September 30, 2020

5,244,921

764,660-

764,660

457,537(457,537)-(421,464)-(421,464)(140,231)--

102,913354,624Note:* Exchange differences were included in “Exchange differences on translating foreign operations” in the condensed
interim consolidated statement of comprehensive income.

82SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 30, 2020c. Uncalled committed capital from Third-Party Investors
Uncalled committed capital from SVF1’s Third-Party Investors as of September 30, 2020 was $10.0 billion.
No contributions from Third-Party Investors were made into SVF2 from the inception to September 30, 2020, andthere were no third-party interests in SVF2 as of September 30, 2020.
(3)

Management fees and performance fees to SBIA
Terms and conditions of management fees and performance fees to SBIA from SVF1, included in segment income
from the SVF1 and other SBIA-managed funds business, are as follows.
a. Management fees to SBIAManagement fees to SBIA are, in accordance with the limited partnership agreement, calculated by multiplying 1%
per annum by Equity contributions and paid to SBIA by SVF1 quarterly. A clawback provision is attached to the
management fees received, which is triggered under certain conditions based on future investment performance.
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 SVF1 receives cash through disposition, dividend and monetization of an investment.
From the inception of SVF1 to September 30, 2020, the cumulative amount of performance fees paid to SBIA was$439 million. For the six-month period ended September 30, 2020, no performance fees were paid to SBIA.
In addition, the performance fees received are subject to clawback provisions which are triggered under certain
conditions based on future investment performance.

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

As ofMarch 31, 2020
Margin deposits in asset management subsidiaries1
Marketable securities pledged as collateral in asset
management subsidiaries2
Restricted cash3
Marketable securities
Time deposits (maturities of more than three months)
Other
Total

-

As of
September 30, 2020
244,400-

213,315

23,907230,234
9,925
49,421
313,487

191,620
66,796
16,12645,084
777,341

Notes:
1. The details are described in “d. Margin deposits” in “(2) Significant accounting policies for the asset management
subsidiary” under “Note 2. Significant accounting policies.”
2. The details are described in “c. Securities pledged as collateral” in “(2) Significant accounting policies for the asset
management subsidiary” under “Note 2. Significant accounting policies.”
3. ¥105,824 million of restricted cash in the asset management subsidiary is included as of September 30, 2020. The details
are described in “b. Restricted cash” in “(2) Significant accounting policies for the asset management subsidiary” under“Note 2. Significant accounting policies.”

83SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 30, 2020

7. Derivative financial assets (non-current)
The increase was primarily due to the contingent consideration related to the acquisition of T-Mobile shares. The details
are described in “(1) Sprint” under “Note 3. Discontinued operations.”

8. Income taxes
For the six-month period ended September 30, 2020
In May 2020, as part of “SoftBank announces ¥4.5 trillion ($41 billion) program to repurchase shares and reduce debt”
announced on March 23, 2020 (the “¥4.5 trillion program”), SBGJ, a wholly-owned subsidiary of the Company,
transferred a portion of SoftBank Corp. shares held (ownership percentage 5.0%). Additionally, in September 2020, in
order to further enhance its cash reserves, a portion of SoftBank Corp. shares held (ownership percentage 21.7%) wastransferred.
¥1,526,867 million of proceeds was received due to the transfers in May 2020 and in September 2020. SoftBank Corp.
remains a subsidiary as of September 30, 2020. Accordingly, ¥460,067 million, the equivalent amount of income taxes
for gain on sales of SoftBank Corp. shares on a consolidation basis, is deducted from capital surplus as “Changes ininterests in subsidiaries.”
As a result of the transaction, it was probable that taxable income would be available for a loss carry forward whose
deferred tax asset was not recognized in SBGJ and a credit of income taxes (profit) was recorded for ¥159,802 million.
Furthermore, a deductible temporary difference, associated with an investment in SoftBank Corp. whose deferred tax
asset was not recognized, was reversed and a credit of income taxes (profit) was recorded for ¥96,258 million.

84

SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 30, 2020

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

As ofMarch 31, 2020
Current
Short-term borrowings1
Commercial paper
Current portion of long-term borrowings1,2
Current portion of corporate bonds
Current portion of installment payables
Current portion of financial liabilities relating to sale ofshares by prepaid forward contracts3
Total
Non-current
Long-term borrowings1
Corporate bonds
Installment payables
Financial liabilities relating to sale of shares by
prepaid forward contracts3
Total

As of
September 30, 2020

1,529,458
206,000
1,949,571
159,938
186

1,709,558
245,100
874,235
59,997249-

11,6383,845,153

2,900,777

3,821,473
5,268,883
272

3,979,045
5,414,217
569

196,101

2,112,938

9,286,729

11,506,769

Notes:
1. Long-term borrowings as of September 30, 2020 include ¥156,340 million (¥408,465 million of short-term borrowings,¥10,883 million of current portion of long-term borrowings, and ¥162,195 million of long-term borrowings as of March
31, 2020) in SVF1.
2. On July 8, 2020, Skywalk Finance GK, a wholly-owned subsidiary of the Company, made an early repayment for the
total amount of borrowings ($9.44 billion) using Alibaba shares pledged as collateral. As a result, current portion of longterm borrowings decreased by ¥1,024,872 million. Accordingly, the collateral was released on the same date. Alibaba
shares are recorded for ¥784,548 million as “Investments accounted for using the equity method” in the condensed interim
consolidated financial position as of September 30, 2020.
3. For the fiscal year ended March 31, 2020, West Raptor Holdings, LLC (“WRH LLC”), a wholly-owned subsidiary of theCompany, entered into a prepaid forward contract using Alibaba shares with a financial institution. As part of the “¥4.5
trillion program,” for the three-month period ended June 30, 2020, West Raptor Holdings 2, LLC (“WRH2 LLC”),
Skybridge LLC, and Skylark 2020 Holdings Limited (“Skylark Limited”), and for the three-month period ended
September 30, 2020, Scout 2020 Holdings Limited (“Scout Limited”) and Tigress 2020 Holdings Limited (“Tigress
Limited”), wholly-owned subsidiaries of the Company, entered into several prepaid forward contracts using Alibaba
shares with financial institutions.
a. Contract for the fiscal year ended March 31, 2020: Procured amount ¥179,145 million ($1.65 billion)
The settlement is expected in October 2021 and November 2021. The number of Alibaba shares settled by the prepaid
forward contracts is determined by reference to the market price of the shares at the valuation dates prior to thesettlement dates. A cap and a floor are set for the price of shares settled.
b. Contract for the three-month period ended June 30, 2020: Procured total amount ¥1,481,716 million ($13.7 billion)(a) Forward contract: Procured amount ¥161,610 million ($1.5 billion)
The settlement is expected in April 2024. The share price and the number of Alibaba shares settled by the prepaid
forward contracts are fixed regardless of changes in market share price in the future.

85

SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 30, 2020(b) Floor contract: Procured amount ¥161,853 million ($1.5 billion)
The settlement is expected in December 2023 and January 2024. The number of Alibaba shares settled by the prepaid
forward contracts is determined by reference to the market price of the shares at the valuation dates prior to thesettlement dates. A floor is set for the price of shares settled.
(c) Collar contract: Procured amount ¥918,531 million ($8.5 billion)
The settlement is expected from January 2022 to September 2022. The number of Alibaba shares settled by the prepaid
forward contracts is determined by reference to the market price of the shares at the valuation dates prior to thesettlement dates. A cap and a floor are set for the price of shares settled.
(d) Collar contract and call spread: Procured amount ¥239,722 million ($2.2 billion)
The settlement is expected from May 2024 to June 2024. The number of Alibaba shares settled by the prepaid forward
contracts is determined by reference to the market price of the shares at the valuation dates prior to the settlement dates.
A cap and a floor are set for the price of shares settled. In addition to the prepaid forward contracts, the call spread(combination of long position of call option and short position of call option with different strike prices) contract isentered into in preparation for Alibaba shares price rise. A portion of the procured amount is used for the payment of
option premium.
c. Contract for the three-month period ended September 30, 2020: Procured total amount ¥179,236 million ($1.7 billion)(a) Collar contract: Procured amount ¥97,897million ($0.9 billion)
The settlement is expected in July 2022. The number of Alibaba shares settled by the prepaid forward contracts isdetermined by reference to the market price of the shares at the valuation dates prior to the settlement dates. A cap anda floor are set for the price of shares settled.
(b) Collar contract and call spread: Procured amount ¥81,339 million ($0.8 billion)
The settlement is expected in August 2024. The number of Alibaba shares settled by the prepaid forward contracts isdetermined by reference to the market price of the shares at the valuation dates prior to the settlement dates. A cap anda floor are set for the price of shares settled. In addition to the prepaid forward contracts, the call spread contract isentered into in preparation for Alibaba shares price rise.
The above prepaid forward contracts are classified as hybrid financial instruments with embedded derivatives and theembedded derivatives are measured at fair value and the call spread is measured at fair value as well. Embedded derivatives
are recognized for ¥37,779 million as “Derivative financial assets (non-current)” and for ¥536,972 million as “Derivative
financial liabilities (non-current)” and the call spread is recognized for ¥63,706 million as “Derivative financial assets(non-current)” in the condensed interim consolidated statement of financial position as of September 30, 2020.
WRH LLC, WRH2 LLC, Skybridge LLC, Skylark Limited, Scout Limited, and Tigress Limited have the option to settle
all of the prepaid forward contracts by delivering cash, Alibaba shares, or a combination of cash and Alibaba shares. If
WRH LLC, WRH2 LLC, Skybridge LLC, Skylark Limited, Scout Limited, and Tigress Limited elect cash settlement,
WRH LLC, WRH2 LLC, Skybridge LLC, Skylark Limited, Scout Limited, and Tigress Limited will pay the cash
equivalent to the fair value of the number of shares subject to the settlement, as determined by reference to the market
price of the shares.
Alibaba shares held by WRH LLC, WRH2 LLC, Skybridge LLC, Skylark Limited, Scout Limited, and Tigress Limited
are pledged as collateral in accordance with all of the prepaid forward contracts, and except for the contract by Tigress
Limited, the Company granted right of use to the financial institutions with respect to such shares. However the collateralcan be released by cash settlement at the discretion of WRH LLC, WRH2 LLC, Skybridge LLC, Skylark Limited, Scout
Limited, and Tigress Limited. Alibaba continues to be an equity method associate of the Company after the completionof these transactions because the Company still has significant influence over Alibaba via voting rights. Alibaba shares
pledged as collateral by the Company are recognized as “Investments accounted for using the equity method” in thecondensed interim consolidated statement of financial position as of September 30, 2020 and the carrying amount is¥493,334 million.

86SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 30, 2020

(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, 2019379,674
174,000
553,674

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

Six-month period ended
September 30, 2020
796,983(8,000)788,983(3) Components of proceeds from interest-bearing debt
The components of “Proceeds from interest-bearing debt” in the condensed interim consolidated statement of cash
flows are as follows:(Millions of yen)

Proceeds from borrowings
Proceeds from issuance of corporate bonds
Proceeds from procurement by prepaid forwards contract
using shares*
Total

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

Six-month period ended
September 30, 2020
1,696,671
300,000-

1,660,952

5,196,627

3,657,623

Note:*The amount is procured under the prepaid forward contracts using Alibaba shares. The details are described in “Notes 3”
under “(1) Components of interest-bearing debt.”(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, 2019
(2,664,040)(922,545)(6,190)(3,592,775)

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

Six-month period ended
September 30, 2020
(3,140,565)(268,185)(3,408,750)

10. Other financial liabilities (current)
The components of other financial liabilities (current) are as follows:(Millions of yen)

As ofMarch 31, 2020
Borrowed securities in asset management subsidiaries1
2

Allowance for financial guarantee contract losses
3

Allowance for loan commitment losses
Other
Total

87

As of
September 30, 2020-

434,572

96,75673,004145,133
6,121
248,010

55,103
17,676580,355

SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 30, 2020

Notes:
1. The details are described in “e. Borrowed securities” in “(2) Significant accounting policies for the asset management
subsidiary” under “Note 2. Significant accounting policies.”
2. For the six-month period ended September 30, 2020, ¥21,466 million of allowance for financial guarantee contract losses
was reversed. The details are described in “Notes 3” under “Note 18. Other gain.”
3. For the six-month period ended September 30, 2020, ¥58,364 million of allowance for loan commitment losses wasreversed. The details are described in “Notes 1” under “Note 18. Other gain.” In addition, the Company purchased¥63,528 million ($0.6 billion) of unsecured notes under the agreement between a wholly-owned subsidiary of theCompany and WeWork in order to purchase up to $2.2 billion in unsecured notes issued by WeWork and ¥28,440 millionof corresponding allowance for loan commitment losses was reversed. At initial recognition, the amount equivalent topurchased unsecured notes after deducting the corresponding allowance for loan commitment losses was recorded as“Other financial assets (non-current)” in the condensed interim consolidated financial position and measured at amortizedcost.

11. Derivative financial liabilities (non-current)
The increase was primarily due to the prepaid forward contracts using Alibaba shares. The details are described in“Notes 3” in “(1) Components of interest-bearing debt” under “Note 9. Interest-bearing debt.”

12. Financial instruments(1) Option contracts
Option contracts included in derivative financial assets and liabilities are mainly as follows:
Option contracts to which hedge accounting is not applied(Millions of yen)

As ofMarch 31, 2020
Carrying amount(fair value)
AssetsLiabilities
Long call option of listed stocks in asset
management subsidiaries
Short call option of listed stocks in asset
management subsidiaries
Contingent consideration relating toacquisition of T-Mobile shares1
Prepaid forward contracts using Alibaba
shares2
Call spread contracts relating to prepaid
forward contracts using Alibaba shares2
Short call option for T-Mobile shares to
Deutsche Telekom AG3

As of
September 30, 2020
Carrying amount(fair value)
AssetsLiabilities--

496,637

-

-

-

-

(133,455)--

373,350

-

5,009

-

37,779(536,972)--

63,706----(178,670)

Notes:
1. Acquired due to the merger transaction with Sprint and T-Mobile US, Inc. The details are described in “(1) Sprint” under“Note 3. Discontinued operations.”
2. Increase was due to prepaid forward contracts using Alibaba shares and call spread contracts relating to prepaid forward
contracts using Alibaba shares. The details are described in “Notes 3” in “(1) Components of interest-bearing debt” under“Note 9. Interest-bearing debt.”

88SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 30, 2020

3. Call options for T-Mobile shares which the Company granted to Deutsche Telekom in relation to the transfer of T-Mobile
share. The details are described in “Note 20. Additional information.”(2) Futures contracts
The details of futures contracts are as follows:
Futures contracts to which hedge accounting is not applied(Millions of yen)

As ofMarch 31, 2020
Carrying amount(fair value)
AssetsLiabilities
Short stock index futures contracts in asset
management subsidiaries

-

As of
September 30, 2020
Carrying amount(fair value)
AssetsLiabilities--(73,585)

13. 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, 2020
105.80
15.54
-

As of
March 31, 2020
108.8315.31
133.32

USD
CNY
GBP*

(2) Average rate for the quarter
For the six-month period ended September 30, 2019

USD
CNY
GBP*

Three-month period ended
June 30, 2019110.0016.13
140.88(Yen)
Three-month period ended
September 30, 2019107.7015.37
132.73For the six-month period ended September 30, 2020

USD
CNY

Three-month period ended
June 30, 2020
107.74
15.16(Yen)
Three-month period ended
September 30, 2020
105.88
15.27

Note:* From the three-month period ended June 30, 2020, Arm Limited, a subsidiary of the Company, changed its functional
currency from British pound to U.S. dollar.

89

SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 30, 2020

This change was made based on the judgement that the primary economic environment in which Arm Limited operates
had changed mainly due to the increase in proportion of the U.S. dollar denominated costs to the total costs in Arm Limited.
As a result of this change, exchange rates of British pound are not presented from the three-month period ended June 30,
2020 as it is no longer considered as a major currency used for translating financial statements of foreign operations.

14. Equity(1) Capital surplus
In May 2020, SBGJ, a wholly-owned subsidiary of the Company, transferred a portion of SoftBank Corp. shares
held (ownership percentage 5.0%) as part of “the ¥4.5 trillion program.” Additionally, in September 2020, in orderto further enhance its cash reserves, a portion of SoftBank Corp. shares held (ownership percentage 21.7%) wastransferred. As a result of the transactions, ¥932,388 million of the equivalent amount for gain on sales of SoftBank
Corp. shares after considering income taxes on a consolidation basis is recorded as “Changes in interests in
subsidiaries” in capital surplus.
(2) Other equity instruments
On July 19, 2017, the Company issued USD-denominated Undated Subordinated Non-Call 6 years Resettable Notes
and USD-denominated Undated Subordinated Non-Call 10 years Resettable Notes (collectively, the “Hybrid
Notes”).
The Hybrid Notes are classified as equity instruments in accordance with IFRSs because the Company has the option
to defer interest payments, the notes have no maturity date, and the Company has an unconditional right to avoid
delivering cash or another financial asset except for distribution of residual assets on liquidation.
(3) Treasury stock
Changes in treasury stock are as follows:(Thousands of shares)

Balance at the beginning of the period

Six-month period ended
September 30, 2019

Six-month period ended
September 30, 2020

46,827

21,818*28,618191,077

Decrease during the period(56,873)(2,401)

Balance at the end of the period

18,572

210,494

Increase during the period

Note:* For the six-month period ended September 30, 2020, due to purchases of treasury stock under the resolution passed
at the Board of Directors meeting held on March 13, 2020, the number of treasury stock increased by 102,960
thousand shares (amount purchased ¥483,971 million). In addition, under the resolutions passed at the Board of
Directors meetings held on May 15, 2020 and June 25, 2020, the number of treasury stock increased by 88,115
thousand shares (amount purchased ¥540,082 million) as part of “the ¥4.5 trillion program.”

90SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 30, 2020

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

As ofMarch 31, 2020
5,115

As of
September 30, 2020
7,656

Debt financial assets at FVTOCI

580

226

Cash flow hedges
Exchange differences on translating
foreign operations

13,12839,926(381,082)(519,419)(362,259)(471,611)

Equity financial assets at FVTOCI

Total

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

Gain relating to sales of T-Mobile shares1
Gain relating to settlement of prepaid forward
contracts using Alibaba shares
Realized loss on sales of investments at asset
management subsidiaries
Unrealized loss on valuation of investments at asset
management subsidiaries
Derivative loss on investments at asset management
subsidiaries
Realized gain on sales of investments
Unrealized gain (loss) on valuation of investments
Derivative gain (loss) on investments2
Other
Total

Six-month period ended
September 30, 2019-

Six-month period ended
September 30, 2020
421,755

1,218,527--(8,060)-(95,082)-(292,346)

1,738(374,458)(119,018)
2,628

162,335
235,859
151,690
3,463

729,417579,614

Notes:
1. On June 26, 2020, the Company transferred 173,564,426 shares out of 304,606,049 shares of T-Mobile common
stock held and ¥280,341 million of gain on sales of shares of associates was recorded for the six-month period
ended September 30, 2020. Additionally, the Company transferred 5,000,000 shares on July 16, 2020 and
19,750,000 shares on August 3, 2020 at $103.00 per a share. As a result of the transactions, ¥3,122 million ofrealized loss on sales of investments and ¥3,014 million of gain related to derecognition of derivative financial
liabilities were recorded for the six-month period ended September 30, 2020. The derivative financial liabilities
were recorded as the difference between the carrying amount of T-Mobile shares as of June 26, 2020 and the fairvalue as of June 30, 2020 in the condensed interim consolidated financial statements as of June 30, 2020 because
the transaction price was fixed at $103.00 per a share under the agreement on June 26, 2020.
In addition, due to the decrease in voting rights ratio resulted from the share transfer, the Company had no significant
influence over T-Mobile and T-Mobile was no longer considered as an equity method associate of the Company on
June 26, 2020. Accordingly, ¥296,013 million of gain from remeasurement relating to discontinuing the use of theequity method for the shares, which were continuously held at the time of discontinuing the use of the equity method,
was recorded for the six-month period ended September 30, 2020.

91SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 30, 2020

Furthermore, ¥154,491 million of derivative loss in relation to call options over T-Mobile shares granted to Deutsche
Telekom was recorded at the time of execution of the agreement for the six-month period ended September 30,
2020.
As a result of the transactions, ¥421,755 million of gain relating to sales of T-Mobile shares was recorded for thesix-month period ended September 30, 2020. The details are described in “Note 20. Additional information.”
2. ¥177,037 million of derivative gain on investments was recorded due to changes in the fair value of contingent
consideration acquired from the merger transaction with Sprint and T-Mobile US, Inc. for the six-month period
ended September 30, 2020. The details are described in “(1) Sprint” under “Note 3. Discontinued operations.”(2) Gain and loss on investments at SVF1 and SVF2
The details are described in “Note 5. SVF1 and other SBIA-managed funds business.”(3) Gain and loss on other investments
The components of gain and loss on other investments are as follows:(Millions of yen)

Realized gain on sales of investments
Unrealized gain on valuation of investments
Derivative gain (loss) on investments
Other

Six-month period ended
September 30, 201910
13,585(2,626)
4,908

Six-month period ended
September 30, 202026
106,947
4,685
5,401

15,877

117,059

Total

16. Finance cost
The components of finance cost are as follows:(Millions of yen)Six-month period ended
September 30, 2019

Six-month period ended
September 30, 2020

(140,572)(153,808)Interest expenses

17. Derivative gain (loss) (excluding gain (loss) on investments)
For the six-month period ended September 30, 2020
Derivative loss of ¥766,380 million was recorded for the prepaid forward contracts using Alibaba shares and the callspread contracts related to the prepaid forward contracts using Alibaba shares. The details of the contracts aredescribed in “Notes 3” in “(1) Components of interest-bearing debt” under “Note 9. Interest-bearing debt.”

92SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 30, 2020

18. Other gain
The components of other gain and loss are as follows:(Millions of yen)Interst income
Foreign exchange gain (loss)
Reversal of allowance for loan commitment
losses1
Dilution gain from changes in equity interest2
Reversal of allowance for financial guarantee
contract losses3
Other
Total

Six-month period ended
September 30, 201917,598Six-month period ended
September 30, 2020
7,069

(5,767)51,479-58,364

28,611

39,885-

21,46615,03755,479(6,541)
171,722

Notes:
1. For the six-months period ended September 30, 2020, ¥58,364 million of reversal of allowance for loan commitment
losses related to acquire unsecured notes issued by WeWork was recorded as expected credit losses were lower than
the amount recorded as of March 31, 2020 due to the improvement of credit spread for WeWork’s unsecured notes
distributed in the market.
2. Primarily represents the dilution gain arising from changes in Alibaba’s equity interest held by the Company due tothe exercise of stock options in Alibaba.
3. For the six-months period ended September 30, 2020, ¥21,466 million of reversal of allowance for financial
guarantee contract losses related to a credit facility for WeWork provided by financial institutions was recorded as
expected credit losses were lower than the amount recorded as of March 31, 2020 due to the improvement of credit
spread for WeWork’s unsecured notes distributed in the market.

19. 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, 2020
Payment of withholding income tax related to dividends within the group companies of ¥155,336 million is included
in “Income taxes paid.”
In addition, refunded withholding income tax related to dividends within the group companies and deemed dividendsof ¥243,602 million is included in “Income taxes refunded.”(2) Proceeds from sales/redemption of investments
For the six-month period ended September 30, 2020
¥2,099,746 million of proceeds received from sales of T-Mobile shares is included in “Proceeds fromsales/redemption of investments.”(3) Proceeds from the partial sales of shares of subsidiaries to non-controlling interests
For the six-month period ended September 30, 2020
“Proceeds from the partial sales of shares of subsidiaries to non-controlling interests” is proceeds received fromsales of SoftBank Corp. shares.

93SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 30, 2020

(4) Significant non-cash transactions
For the six-month period ended September 30, 2020
a. Offset proceeds from sales of listed shares and payments for acquisition of listed shares
Account payables for acquisition of listed shares and account receivables from sales of listed shares were offset
because the counterparty was the same entity and the settlement date was the same date.
In case that account payables for acquisition of shares are larger than account receivables from sales of shares, thenet amount is recognized as “Payments for acquisition of investments,” and in case that account receivables fromsales of shares are larger than account payables, the net amount is recognized as “Proceeds from sales/redemptionof investments.”
For the six-month period ended September 30, 2020, ¥1,096,868 million of account payables for acquisition ofshares and ¥294,780 million of account receivables from sales of shares were offset, and the net amount of¥802,088 million was recognized as “Payments for acquisition of investments.” Also, ¥961,358 million of accountreceivable from sales of shares and ¥292,573 million of account payables for acquisition of shares were offset,
and the net amount of ¥668,785 million was recognized as “Proceeds from sales/redemption of investments.”
b. Sprint Merger
The merger between Sprint and T-Mobile US, Inc. and the acquisition of contingent consideration with the merger
are correspond to significant non-cash transaction. The details are described in “(1) Sprint” under “Note 3.
Discontinued operations.”

20. Additional information(The transfer of T-Mobile shares)(1) Outline of the Transfer
The Company, as part of “the ¥4.5 trillion program,” of 304,606,049 shares of T-Mobile common stock held,transferred 173,564,426 shares on June 26, 2020 (a. and b. described in (2)), 5,000,000 shares on July 16, 2020 (c.
described in (2)), and 19,750,000 shares on August 3, 2020 (d. described in (2)), to T-Mobile through its subsidiary(the “Transfer”).
T-Mobile disposed of the shares transferred from its subsidiary through a public offering in the United States, aprivate placement through a trust issuing cash mandatory exchangeable trust securities, a rights offering* and a sale
to Marcelo Claure, one of its directors, with the proceeds being transferred to the Company’s subsidiary (collectively,
the “Related Transactions”).
In connection with the consummation of the Transfer and Related Transactions, the Company paid $300 million to
T-Mobile.
The aggregate transaction price for the Transfer is equal to the proceeds received by T-Mobile in the Related
Transactions.
Note:* The Company, Deutsche Telekom, Marcelo Claure and certain of their respective affiliates have agreed to waive theirrights to participate in the rights offering.

94

SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 30, 2020

(2) Number of shares to be transferred and transaction pricea. Shares to be transferred in the U.S. public offering by
T-Mobile and transaction price thereof

154,147,026 shares
Transaction price per share $103.00
Aggregate transaction price $15,877 million

b. Shares to be transferred to the Trust from T-Mobile ina private offering through the Trust and transaction
price thereof

19,417,400 shares
Aggregate transaction price $1,667 millionc. Shares to be transferred to Marcelo Claure, a directorof T-Mobile and transaction price thereofd. Shares to be transferred to the shareholders in therights offering by T-Mobile and transaction pricethereof5,000,000 shares
Transaction price per share $103.00
Aggregate transaction price $515 million
19,750,000 shares
Transaction price per share $103.00
Aggregate transaction price $2,034 million(3) Grant of call options to Deutsche Telekom
The Company granted to Deutsche Telekom call options (the “Call Options”) over 101,491,623 shares of T-Mobile
which the Company holds through its subsidiary.
a. For the Call Options over 44,905,479 shares out of the 101,491,623 shares, a strike price of the call option is$103.00 per a share. Deutsche Telekom can exercise the Call Options any time after the grant date.
b. For the Call options over 56,586,144 shares out of the 101,491,623 shares, a strike price of the call option isequal to the average of the daily volume-weighted average price of the shares of T-Mobile for each of the 20
trading days immediately prior to exercise. Deutsche Telekom can exercise the Call Options after the exercise ofrights described in the above a. or October 2, 2020.
Note:*The Call Options expire on June 22, 2024, unless certain events occur that trigger an earlier expiration date.

(4) Number of shares to be transferred, number of shares subject to the Call Options and number of shares held by theCompany before/after the transactions
a. Number of shares held before the Transfer

304,606,049 sharesb. Number of the released shares

198,314,426 sharesc. Number of shares held after the Transfer

106,291,623 sharesd. Number of shares subject to the Call Options
e. Number of shares held after the Call Options are
exercised*

101,491,623 shares
4,800,000 shares

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

21. Significant subsequent events(1) Amendment of prepaid forward contracts using Alibaba shares
In October 2020, regarding the collar contract which was entered into for the three-month period ended June 30, 2020,
amendment of the contract to revise the cap and floor for the price of shares settled has executed. The details of thecontract before the amendment is described in “Notes 3, b. (c)” in “(1) Components of interest-bearing debt” under“Note 9. Interest-bearing debt.” The amendment of the contract is applicable for an exchange of debt instruments with
substantially different terms under IFRS, and accounted for as an extinguishment of the original financial liabilities
relating to the sale of shares by variable prepaid forward contract and the recognition of new financial liabilities
relating to the sale of shares by variable prepaid forward contract.

95

SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 30, 2020

The new variable prepaid forward contract is also classified as a hybrid financial instrument with embedded
derivatives and such embedded derivatives are measured at fair value. In addition, for the derivative financial assets
and the derivative financial liabilities recognized from the variable prepaid forward contract, a tax effect is recognized.
As a result of the amendment, upon the extinguishment of the original contract, financial liabilities relating to thesale of shares by variable prepaid forward contract (¥1,039,397 million as of September 30, 2020) and ¥310,348
million of derivative financial liabilities (non-current) are derecognized. On the other hand, ¥1,556,554 million of the
new financial liabilities relating to the sale of shares by variable prepaid forward contract and ¥227,905 million ofderivative financial assets (non-current) are newly recognized and ¥16,200 million of cash is paid as a difference inexchange value between the original and new contracts. Further, along with the fluctuation of derivative financial
assets and derivative financial liabilities, ¥186,182 million of deferred tax liabilities is increased and the same amountof income taxes is increased, representing the tax effect.
In addition, in October 2020, in terms of the prepaid forward contract which was entered into for the fiscal year ended
March 31, 2020, amendment of the contract to revise the cap and floor for the price of shares settled has executed.
And also in terms of the forward contract which was entered into for the three-month period ended June 30, 2020,
amendment of the contract to change to collar contract which a cap and a floor are set for the price of shares settles
has executed. The details of the contracts before the amendment are described in “Notes 3, a. and b. (a)” in “(1)Components of interest-bearing debt” under “Note 9. Interest-bearing debt.” The impact to the financial results forthe fiscal year ending March 31, 2021 is under calculation.
(2) Fund procurement by using Alibaba shares pledged as collateral in the asset management subsidiary
In October 2020, SB Northstar made a borrowing of $6.0 billion by using Alibaba shares pledged as collateral. The
repayment due for the borrowing is October 2021. Alibaba shares pledged as collateral are recorded for ¥249,461
million as “Investments accounted for using the equity method” in the condensed interim consolidated financial
position as of September 30, 2020.

96