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

SoftBank Group Corp.
Consolidated Financial Report
For the Fiscal Year Ended March 31, 2021 (IFRS)Tokyo, May 12, 2021

1.

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

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

Net sales

Fiscal year ended
March 31, 2021
Fiscal year ended
March 31, 2020

Fiscal year ended
March 31, 2021
Fiscal year ended
March 31, 2020

Incomebefore income tax

Net income
Amount%

Net income
attributable toowners of the parent%

Amount%Total
comprehensive
incomeAmount%AmountAmount%¥5,628,167

7.4¥5,670,456-¥5,078,236-¥4,987,962-¥5,578,244-¥5,238,938-¥50,038-¥(800,760)-¥(961,576)-¥(1,290,339)-

Basic earnings per share(Yen)

Diluted earnings per
share (Yen)

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

Ratio of income before
income tax to total assets(%)¥2,619.61¥2,437.29

61.9

13.7

¥(478.50)¥(485.33)(14.2)

0.1

Notes:
1. Income on equity method investments
Fiscal year ended March 31, 2021:
Fiscal year ended March 31, 2020:¥616,432 million¥624,015 million

2. 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 fiscal year ended March 31, 2020 are not presented because
corresponding amounts for the fiscal year ended March 31, 2020 are revised and presented respectively.
Please refer to page 87 “Note 3. Discontinued operations” in “(6) Notes to Consolidated Financial Statements” under “4.
Consolidated Financial Statements and Primary Notes” for details.
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 previous fiscal year.

(2) Financial Position
Total assets

Total equity

Equityattributable toowners of theparentAs of March 31, 2021

¥45,750,453¥11,955,593¥10,213,093

22.3

5,588.80

As of March 31, 2020

¥37,257,292¥7,372,917¥5,913,613

15.9

2,619.32

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

Equity per share
attributable toowners of theparent (Yen)Note:* “Equity per share attributable to owners of the parent” is based on “Equity attributable to owners of the parent” excluding theamount not attributable to ordinary shareholders.

(3) Cash Flows2.

Operating activities

Investing activities

Financing activities

Cash and cash
equivalents
at the end of the year

Fiscal year ended
March 31, 2021

¥557,250¥(1,468,599)¥2,194,077¥4,662,725

Fiscal year ended
March 31, 2020

¥1,117,879¥(4,286,921)¥2,920,863¥3,369,015

Dividends
Dividends per shareFirst quarter

Second quarter

Third quarter

Fourth quarter

Total

(Yen)

(Yen)

(Yen)

(Yen)

(Yen)

-

22.00

-

22.00

44.00

Fiscal year ended
March 31, 2021

-

22.00

-

22.00

44.00

Fiscal year ending
March 31, 2022 (Forecasted)

-

22.00

-

22.00

44.00

Fiscal year ended
March 31, 2020

(Millions of yen)%

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

Fiscal year ended
March 31, 2020

91,063-

1.5

Fiscal year ended
March 31, 2021

79,592

1.7

1.1

Total amount ofdividends(Annual)Fiscal year ending
March 31, 2022 (Forecasted)

Payout ratio(Consolidated)-

* Notes(1) Significant changes in scope of consolidation (changes in scope of consolidation of specified subsidiaries): Yes
Newly consolidated: Two entities: LINE Corporation, LINE Financial Asia Corporation Limited
Excluded from consolidation: Three entities: Sprint Corporation, Sprint Communications, Inc., Starburst I, Inc.
Notes:
1. Please refer to page 60 “(1) Significant Changes in Scope of Consolidation for the Fiscal Year Ended March 31, 2021” under“3. Notes to Summary Information” for details.
2. Foreign subsidiaries prepare stand-alone financial statements only under circumstances where it is necessary under their local
laws and practices. Applicability of Cabinet Office Ordinance on Disclosure of Corporate Affairs, etc. Article 19, Paragraph(10), Item (i) to (iii), is determined by using the financial statements.
On the other hand, for foreign subsidiaries that do not prepare stand-alone financial statements, information on the capital andnet assets for those companies is not available. Therefore, Cabinet Office Ordinance on Disclosure of Corporate Affairs, etc.
Article 19, Paragraph (10), Item (i) is used to determine whether the companies are the specified subsidiaries.
The applicability of Cabinet Office Ordinance on Disclosure of Corporate Affairs, etc. Article 19, Paragraph (10), Item (i) is
determined based on the percentage of total amount of purchase from SoftBank Group Corp. and dividend paid to SoftBank
Group Corp. to total amount of operating revenue of SoftBank Group Corp.
For fund-type subsidiaries, the amount of net assets based on financial statements prepared in accordance with 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][2]

Changes in accounting policies required by IFRSs: No
Changes in accounting policies other than those in [1]: No[3]

Changes in accounting estimates: Yes

Please refer to page 60 “(2) Changes in Accounting Estimates” under “3. Notes to Summary Information” for details.
(3) Number of shares issued (common stock)[1] Number of shares issued (including treasury stock):
As of March 31, 2021:
As of March 31, 2020:

2,089,814,330 shares
2,089,814,330 shares[2] Number of shares of treasury stock:
As of March 31, 2021:

351,297,587 shares

As of March 31, 2020:
21,818,471 shares[3] Number of average shares outstanding during twelve-month period (April-March):
As of March 31, 2021:
As of March 31, 2020:

1,892,538,088 shares
2,074,225,377 shares

Note:* The Company conducted a share split at a ratio of two-for-one effective June 28, 2019. “Number of average shares
outstanding during twelve-month period” is calculated assuming that the share split was conducted at the beginning of theprevious fiscal year.

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

Operating revenue

Operating income

Ordinary income

AmountAmountAmount%%

Net income%

Amount%Fiscal year ended
March 31, 2021

¥1,622,615-¥1,569,569-¥1,258,459-¥1,403,478-

Fiscal year ended
March 31, 2020

¥101,542(95.1)¥50,039(97.5)¥(135,045)-¥(964,714)-

Net income pershare-basic (Yen)
Fiscal year ended
March 31, 2021
Fiscal year ended
March 31, 2020

Net income pershare-diluted (Yen)¥741.58¥739.48¥(465.10)¥-

Notes:
1. The Company conducted a share split at a ratio of two-for-one effective June 28, 2019. “Net income per share-basic” and “Net
income per share-diluted” are calculated assuming that the share split was conducted at the beginning of the previous fiscal year.
2. Net income per share-diluted for the fiscal year ended March 31, 2020 is not presented as net income per share-basic is negative.

(2) Non-Consolidated Financial Position
Total assets

Net Assets

Equity ratio (%)

Shareholders’ equity
per share (Yen)

As of March 31, 2021

¥19,234,339¥3,536,120

18.3¥2,027.26

As of March 31, 2020

¥15,199,663¥4,153,205

27.2¥2,000.51

Note:* Shareholders’ equity (Non-consolidated)
As of March 31, 2021:
As of March 31, 2020:¥3,524,428 million¥4,137,052 million(3) Differences in Non-Consolidated Operating Results from the Previous Fiscal Year
The increases in operating revenue, operating income, ordinary income, and net income in the fiscal year ended March 31, 2021
from the previous fiscal year ended March 31, 2020 were mainly attributable to a ¥1,521,117 million year-on-year increase individends from subsidiaries and associates.
Financial Highlights (Non-Consolidated) are prepared in accordance with Accounting Principles Generally Accepted in Japan.

* This consolidated financial report is not subject to audit procedures by certified public accountants or an auditing firm.
* Note to forecasts on the consolidated results of operations and other items
Descriptions regarding the future are estimated based on the information that the Company is able to obtain at the present point intime and assumptions which are deemed to be reasonable. However, actual results may be different due to various factors.
On May 12, 2021 (JST), the Company will hold an earnings results briefing for the media, institutional investors, and financial
institutions. This earnings results briefing will be broadcast live on the Company’s website in both Japanese and English athttps://group.softbank/en/ir/presentations. The Data Sheet will also be posted on the website in a few days at the same site.

SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2021

(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. 29(c) SoftBank Segment ............................................................................................................................ P. 36(d) Arm Segment.................................................................................................................................... P. 37(e) Other ................................................................................................................................................. P. 41(2) Overview of Financial Position ................................................................................................................. P. 43(3) Overview of Cash Flows ........................................................................................................................... P. 55(4) Forecasts .................................................................................................................................................... P. 59
2. Basic Approach to the Selection of Accounting Standards .............................................................................. P. 59
3. Notes to Summary Information ....................................................................................................................... P. 60(1) Significant Changes in Scope of Consolidation for the Fiscal Year Ended March 31, 2021 ........................ P. 60(2) Changes in Accounting Estimates ............................................................................................................. P. 60
4. Consolidated Financial Statements and Primary Notes ...................................................................................
(1) Consolidated Statement of Financial Position ...........................................................................................
(2) Consolidated Statement of Income and Consolidated Statement of Comprehensive Income ...................
(3) Consolidated Statement of Changes in Equity ..........................................................................................
(4) Consolidated Statement of Cash Flows .....................................................................................................
(5) Significant Doubt about Going Concern Assumption ...............................................................................
(6) Notes to Consolidated Financial Statements .............................................................................................

P. 62
P. 64
P. 66
P. 69
P. 73
P. 76
P. 76

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 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. holdersof SBG’s shares consult their tax advisers with respect to U.S. federal income tax consequences if SBG is classified as a PFIC.

1SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2021

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

Definition

SoftBank Group Corp. or SBG
SoftBank Group Corp. (stand-alone basis)
The Company
SoftBank Group Corp. and its subsidiaries*Each of the following names or abbreviations indicates the respective company and its subsidiaries, if any.
SB Northstar
SB Northstar LP*1
SoftBank Vision Fund 1 or SVF1
SoftBank Vision Fund L.P. and its alternative investment vehicles
SoftBank Vision Fund 2 or SVF2 SoftBank Vision Fund II-2 L.P. and its alternative investment vehicles*2
SBIA
SB Investment Advisers (UK) Limited
SoftBank Latin America Fund
SoftBank Latin America Fund L.P.
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 third quarter
Three-month period ended December 31, 2020
The fourth quarter
Three-month period ended March 31, 2021
The fiscal year
Fiscal year ended March 31, 2021
The previous fiscal year
Fiscal year ended 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. For details, see “4. Consolidated Financial Statements and Primary Notes.”
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 fiscal year-end,
SBG is the sole limited partner investing in SoftBank Vision Fund 2.

Exchange Rates Used for Translations
Average rate for the quarter
Fiscal year ended March 31, 2020
Q1
Q2
Q3
Q4
USD / JPY

¥110.00¥107.70¥108.98¥109.22Q1¥107.74

Fiscal year ended March 31, 2021
Q4Q2
Q3¥105.88¥104.45¥106.24Rate at the end of the period
USD / JPY

March 31, 2020

March 31, 2021

¥108.83¥110.712

SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2021

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 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. is a strategic investment holding company managing a portfolio of investments in a wide
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 completion of themerger between Sprint and T-Mobile US, Inc. Given that investment activities have taken on greater importance in
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 to show investment performance in the consolidated financial results. Thischange in presentation was made because the previously used “operating income” excluded gain and loss on investments, other than gain and loss on investments included in “gain (loss) on investments at SVF1, SVF2, and others.”
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 as discontinued operations
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). Accordingly, Brightstar’s
net income or loss up until the completion of the transaction has been classified in the Consolidated Statement of
Income as “net income from discontinued operations.” Brightstar’s income or loss for 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. Following the completion of the transaction, Brightstar ceased to bea subsidiary of the Company.

3SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2021

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” for the overview of the segment.
Removal of Brightstar segment
Following the classification of Brightstar as discontinued operations, Brightstar has been removed from the Company’s reportable segments since the second quarter.
As of the fiscal year-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 Fiscal Year Ended March 31, 2021

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

1. Highlights of results
 Gain on investments of ¥7,529.0 billion- Gain on investments at SVF1, SVF2, and others of ¥6,292.0 billion· SVF1 recorded realized gain on sales of investments (net) of ¥423.7 billion, resulting from the sales ofinvestments in Guardant Health (partial), OSIsoft, Uber (partial), and others. In addition, SVF1
recorded unrealized gain on valuation totaling ¥4,285.1 billion for listed portfolio companies(including gains of ¥2,597.8 billion for Coupang and ¥661.1 billion for DoorDash). Unrealized gain
on valuation (net) for unlisted portfolio companies totaled ¥1,193.0 billion.
· SVF2 recorded unrealized gain on valuation (net) of ¥490.3 billion, mainly due to strong stock
performance of listed portfolio companies such as KE Holdings.
- Gain on investments at Investment Business of Holding Companies of ¥945.9 billion: In connection withthe 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¥219.6 billion related to T-Mobile shares continued to be held by the Company, and derivative gain of¥264.4 billion resulting from an increase in the fair value of a contingent consideration were recorded.
Conversely, investment loss from investments in listed stocks and other instruments of ¥232.9 billion
was recorded.
 Income before income tax of ¥5,670.5 billion (increased ¥5,620.4 billion yoy)
- Finance cost of ¥307.3 billion*- Derivative loss (excluding gain (loss) on investments) of ¥480.3 billion*- Change in third-party interests in SVF1 of ¥(2,246.4) billion** recorded as a cost for the fiscal year Net income attributable to owners of the parent of ¥4,988.0 billion (increased ¥5,949.5 billion yoy)
- Net income from discontinued operations of ¥711.2 billion was recorded, primarily reflecting gain
relating to loss of control of Sprint.
2. Continued strong performance of investment business SVF1: During the fourth quarter, AUTO1, Coupang, and View were listed, bringing the total number oflistings for the fiscal year to six. As of the fiscal year-end, 11 out of a total of 81 portfolio companies
were listed.
 SVF2: During the fourth quarter, Qualtrics was listed. As of the fiscal year-end, three out of a total of 44
portfolio companies were listed.
 SPACs: During the fourth quarter, seven special purpose acquisition companies (SPACs) controlled bysubsidiaries were listed, including three controlled by SBIA, bringing the total number of listed SPACs
at the fiscal year-end to nine. One of the SPACs completed a merger with an operating company.
3. Completion of the ¥4.5 trillion program Sale or monetization of assets: The Company completed sale or monetization of assets totaling ¥5.6
trillion over the six months from April to September 2020, through the partial sale or monetization ofshares of T-Mobile, Alibaba, and SoftBank Corp.
 Share repurchase: The size of the share repurchase was set at a total of up to ¥2.0 trillion. Of this, theCompany repurchased shares for a cumulative total of ¥1.742.2 billion by March 31, 2021 and acumulative total of ¥1,950.2 billion by April 30, 2021. The Company will continue repurchasing sharesto the upper limit of the program.
 Debt reduction: The Company reduced debt by a total of ¥1 trillion by the fiscal year-end throughrepurchasing domestic corporate bonds and foreign currency-denominated corporate bonds, as well as
repaying senior loans and borrowings made under the commitment line.
 The rest of the proceeds has been invested in highly liquid listed stocks in readiness for future
investment opportunities.
4. Dividend per share for the fiscal year decided to be ¥44 by the Board of Directors
5. Business integration of Z Holdings Corporation and LINE Corporation completed on March 1, 2021

5

SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2021

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 to fund share repurchases and improve the Company’s financial status through initiatives such as debt reduction. The funds obtained
from the sale and monetization were to be used to repurchase up to ¥2 trillion of the Company’s common stock, withthe balance 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 of the second quarter-end. For the six months from April to September 2020, the amount of sale or monetizationof assets totaled ¥5.6 trillion. Regarding the share repurchases of up to ¥2 trillion, from May to July 2020 the Company set the size of the repurchase of up to ¥2 trillion of its shares. Of this, as of April 30, 2021, it had repurchased acumulative total of ¥1,950.2 billion. The Company will continue repurchasing shares to the upper limit of the program.
With regard to debt reduction, the Company reduced debt by a total of ¥1 trillion by the fiscal year-end through therepurchase of domestic corporate bonds and foreign currency-denominated corporate bonds, as well as by repaying
senior loans and borrowings made under the commitment line. To further improve the financial status, the rest of theproceeds has been invested in highly liquid listed stocks through the Company’s asset management subsidiary SB
Northstar in readiness for future investment opportunities. With these, the ¥4.5 trillion program has been completed.
For details on the investments in listed stocks by SB Northstar, see “(a) Investment Business of Holding Companies
Segment” under “b. Results by Segment.”
Asset sales or monetization for the six months from April to September 2020
(Trillions of yen)Amount of sale or monetization

April to June 2020

July to September 2020

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

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

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.
On April 1, 2020, the merger of Sprint, which had been a U.S. subsidiary of the Company, and T-Mobile US, Inc. inan all-stock transaction (the “Merger”) was completed. 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. For details, see “(1) Sprint” under “3. Discontinued operations” in “(6) Notes to Consolidated
Financial Statements” in “4. Consolidated Financial Statements and Primary Notes.”

6

SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2021

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 U.S., a private placement through a trust issuing cash mandatory exchangeable trust securities, a sale to T-Mobile Board Director Marcelo
Claure (Corporate Officer, Executive Vice President & COO of SBG), and a rights offering, with the proceeds 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

Number ofshares sold(shares)

Total sale value(Millions of U.S. dollars)(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

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”).2(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 option(i) above or after October 2, 2020.

2 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 Fiscal Year Ended March 31, 2021

Number of T-Mobile shares held by the Company before and after the Partial Sale(a) Number of shares held before the Partial Sale(b) Number of shares sold through the Partial Sale(c) Number of shares held after the Partial Sale ((a) – (b))(d) Number of shares subject to the Deutsche Telekom Call Options(e) Number of shares held after the Deutsche Telekom Call Options are exercised ((c) – (d))

304,606,049
198,314,426
106,291,623
101,491,623
4,800,000(f) Number of shares that can be acquired through the Contingent Consideration(g) Number of shares held if the shares are acquired through the Contingent Consideration ((e) + (f))

48,751,557
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 as collateral(margin loan). Because SBG has, as an exception, guaranteed a portion of the margin loan, $2.3 billion is considered as
the amount of assets monetized under the ¥4.5 trillion program after deducting the maximum amount of the guarantee
obligations ($2.08 billion at the time of the monetization). As a precondition for SBG to fulfill its guarantee obligations,the lenders are obligated to first recover the amount to the maximum extent possible from Alibaba shares that have been
pledged as collateral 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.
Of the abovementioned prepaid forward contracts concluded from April to August 2020, in October and November
2020 the cap (upper limit) and floor (lower limit) for the price of shares to be settled were revised for the collar
contract, and the forward contract was changed to a collar contract with a set cap and floor for the price of the shares
to be settled. At the same time, the cap and floor for the price of shares to be settled were also revised for the prepaid
forward contract using Alibaba shares (collar contract) concluded in the previous fiscal year. These revisions weremade in response to a rise in the price of Alibaba shares at the time, with a view to capturing the upside potential
during a phase of further share price increases. Moreover, a portion of the collar contract was terminated early in
April 2021 in view of the current level of Alibaba’s share price. For details of these, see “12. Interest-bearing debt”
under “(6) Notes to Consolidated Financial Statements” in “4. Consolidated Financial Statements and Primary Notes.”
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 (“SBGJ”) and received a totalof ¥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

8SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2021

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 SBGJ have no intention of selling
additional SoftBank Corp. shares and intend to continue to hold the remaining shares held for the medium to longterm.
Since SoftBank Corp. continues to be a subsidiary of SBG following these sales, the amounts equivalent to theafter-tax gain on the sales were recorded as “capital surplus” in the Consolidated Statement of Financial Position. In
addition, a credit of income taxes of ¥256,060 million (profit) was recorded, mainly due to the SBGJ use of loss
carryforwards against the taxable income generated from these transactions, to which deferred tax assets had notbeen recognized.
Share repurchases based on the ¥4.5 trillion program
As of April 30, 2021

In progress
Date of Board
resolution

Total number of shares
repurchased

Total amount ofrepurchase

Repurchase period

July 30, 2020

101,540,300¥950.2 billion

From December 14, 2020
to April 30, 2021

Maximum of
240,000,000

Maximum of¥1 trillion

From July 31, 2020
to July 30, 2021

Completed
Date of Board
resolution

Total number of shares
repurchased

Total amount ofrepurchase

Repurchase period

May 15, 2020

81,940,400¥500 billion

From June 17, 2020
to August 3, 2020

June 25, 2020

70,579,400¥500 billion

From September 15, 2020
to December 11, 2020

Resolution details(Reference: Share repurchase resolved before the ¥4.5 trillion program)March 13, 2020

107,679,300¥500 billion

From March 16, 2020
to June 15, 2020

Reduction of debt based on the ¥4.5 trillion program
SBG reduced debt by ¥1 trillion as follows by the fiscal year-end, completing the debt reduction based on the ¥4.5
trillion program.
a. Repurchase of domestic unsecured corporate bonds with a total face value of ¥167.6 billion (July 2020)
b. Early repayment of senior loans with an aggregate face value of ¥300.0 billion (September 2020)c. Repurchase of foreign currency-denominated corporate bonds with a total face value of $0.98 billion and €0.90
billion (¥224.9 billion in total) (March 2021)
d. Repayment of borrowings of ¥310.0 billion made under the commitment line (March 2021)

9

SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2021

ENTRY INTO AGREEMENT FOR 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. In the fourth quarter, it was
decided that the Internet-of-Things Services Group (ISG) businesses, which are outside the scope of the Transaction,
would be managed separately from Arm’s remaining business. Arm expects the ISG businesses to be transferred fromArm by December 2021. Accordingly, the segment classification of the Company was revised, and for the fiscal year,
the operating results of Arm are presented for the Arm segment excluding the contribution of the ISG businesses,
while those of the ISG businesses are now included in “Other” in the reportable segments. The operating results ofthese businesses for the previous fiscal year have also been retrospectively presented.
Upon the closing 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)Time of receipt

Transaction value
Consideration for the Company(1) Cash(2) NVIDIA shares

12.0

21.5
(44.37 million shares)(a) 2.0

Received on September 2020($0.75 billion of which was received
by Arm as consideration for a license
agreement)(b) 10.0

Upon closing
Upon closing(3) Earn-out (cash or NVIDIA
shares)Up to 5.0
(or 10.32 million
shares)Upon closing; subject to satisfactionof specific financial performance targets of Arm(4) NVIDIA share compensation for Arm employees

1.5

Upon closing; to be received by Arm
employees

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 allocatedto 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).

10SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2021

(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$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 44,366,423 shares of NVIDIA common stock,which was determined based on 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 NVIDIA common stock to be received, 2,063,554 shares will be subject to escrow 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 the satisfaction of certain financial performance targets for each of revenue and EBITDA of Arm (in each casesubject to certain adjustments and excluding any amounts attributable to the ISG businesses) 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 meetsuch 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 from NVIDIA.
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, as well as dividends income received from Arm, is included in segment income as“gain (loss) on investments at SVF1, SVF2, and others,” but is eliminated in consolidation and not included in “gain(loss) on investments at SVF1, SVF2, and others” in the Consolidated Statement of Income.

11SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2021

MAJOR IMPACT OF THE MERGER BETWEEN SPRINT AND T-MOBILE US, INC. AND THE PARTIAL SALE OF T-MOBILE SHARES ON THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE
FISCAL YEAR
Impact of the merger of Sprint and T-Mobile US, Inc.
a. Impact on the Consolidated Statement of Income
A gain relating to loss of control of Sprint of ¥720.8 billion was recorded as “net income from discontinued
operations.”b. Impact on the 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
as “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 fairvalue).
· The Contingent Consideration, which was received as consideration for the Merger, of ¥460.7 billion was recorded
as “derivative financial assets.” An increase in the fair value of ¥264.4 billion was recognized as of the fiscal yearend, after the fair value of ¥196.3 billion was recorded at the time of the Merger (this increase was recorded as
derivative gain as “gain on investments at Investment Business of Holding Companies”).
Impact of the partial sale of T-Mobile sharesa. Impact on the Consolidated Statement of Income
Gain (loss) on investments
Gain relating to sales of T-Mobile shares of ¥421.8 billion was recorded as “gain (loss) on investments at Investment
Business of Holding Companies.” This consisted of a gain of ¥280.3 billion on sales of shares of associates, a gainof ¥296.0 billion on the revaluation of T-Mobile shares continued to be held by the Company, a derivative loss relating
to the Deutsche Telekom Call Options of ¥154.5 billion, a realized loss of ¥3.1 billion on the sale of T-Mobile shares,
and a gain of ¥3.0 billion on the derecognition of derivative liabilities.
b. Impact on the Consolidated Statement of Financial Position
Assets
T-Mobile shares continued to be held by the Company were recorded as “investment securities” at fair value (fiscal
year-end: ¥1,474.4 billion). T-Mobile shares continued to be held by the Company are measured at fair value at eachquarter-end, with changes recorded as “gain (loss) on investments at Investment Business of Holding Companies” in
the Consolidated Statement of Income. Unrealized gain on valuation of investments of ¥219.6 billion related to TMobile shares was recorded for the period from June 26, 2020 to the fiscal year-end.
Liabilities
The Deutsche Telekom Call Options were recorded as “derivative financial liabilities” at fair value (the fiscal yearend: ¥204.8 billion). The Deutsche Telekom Call Options are measured at fair value at each quarter-end, with changes

12SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2021

recorded as derivative gain and loss under “gain (loss) on investments at Investment Business of Holding Companies”
in the Consolidated Statement of Income.
c. Impact on the Consolidated Statement of Cash Flows
Cash flows from investing activities
Proceeds from the sale of T-Mobile shares of ¥2.1 trillion were recorded as “proceeds from sales/redemption of
investments.”
MAJOR IMPACT FROM THE COVID-19 PANDEMIC ON MARKETS AND BUSINESSES OF THE COMPANY
During the fiscal year, the global economic situation was greatly affected by the spread of the novel coronavirus(COVID-19) and the pandemic that followed, which continues to this day. Governments around the world are implementing fiscal stimulus and monetary easing measures to counter the economic impacts of the pandemic, and expectations that vaccination programs progress in some countries will encourage greater economic activity have led to a
sharp overall market recovery in the second half of the fiscal year, with new capital continuing to flow in. In particular,
the technology sector, where the Company focuses its investment strategies, has been positively impacted by theaccelerated adoption of digital services to address the pandemic. In the fiscal year, the S&P 500 Information Technology Sector was up 73%. These factors resulted in the strong performance of the Company’s investments, particularly at SVF1 and SVF2, leading to a consolidated gain on investments of ¥7,529,006 million for the fiscal year.
However, there is no guarantee that the current positive impact will be sustained in light of uncertainties associatedwith the pandemic, and the direction and degree of impact may vary from investment to investment.
In particular, SVF1 recorded unrealized gain on valuation (net) of ¥5,478,148 million for the fiscal year, mainly
due to the new listings of investees and the subsequent rise in stock prices supported by favorable stock market
conditions, as well as increases in the fair values of unlisted portfolio companies where listings have been decided,that had new funding rounds, or have seen increased customer usage of services during the COVID-19 crisis. Businesses in sectors such as e-commerce, entertainment, healthcare, education, food delivery, and the future of work
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 than in prior rounds. The
Company 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.

13

SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2021

a. Consolidated Results of Operations(Millions of yen)

Fiscal year ended March 31
2020
2021
Continuing operations
Net sales
Gross profit

ChangeChange %5,238,938
2,654,665

5,628,167
2,874,929

389,229
220,264

7.4%
8.3%

A

484,308

945,944461,63695.3%

B(1,844,867)(49,594)(1,410,153)

6,292,024
291,038
7,529,006

8,136,891
340,632
8,939,159-

C(2,060,080)(293,897)
624,015(2,271,497)(307,250)
616,432(211,417)(13,353)(7,583)

10.3%
4.5% D(1.2%) E

15
540,930(5,457)50,038(480,251)(2,246,417)(44,496)
5,670,456(480,266)(2,787,347)(39,039)5,620,418- F-

Income taxes
Net income from continuing operations(792,655)(742,617)(1,303,168)
4,367,288(510,513)
5,109,905

64.4%
-

G

Discontinued operations
Net income from discontinued operations(58,143)

710,948

769,091-H

Net income
Net income attributable to owners of the parent(800,760)(961,576)

5,078,236
4,987,962

5,878,996
5,949,538-

Total comprehensive income
Comprehensive income attributable to owners of
the parent(1,290,339)

5,578,244

6,868,583-(1,425,587)

5,482,739

6,908,326-

Gain on investments
Gain on investments at Investment Business of
Holding Companies
Gain (loss) on investments at SVF1, SVF2, andothersGain (loss) 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 loss
Income before income tax

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

14SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2021

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

In relation to the merger of Sprint and T-Mobile and subsequent partial sale of T-Mobile shares, the Company
recorded gain relating to sales of T-Mobile shares of ¥421,755 million, unrealized gain on valuation of ¥219,608
million related to T-Mobile shares continued to be held by the Company, and derivative gain of ¥264,395 million
associated with an increase in the fair value of the Contingent Consideration. Meanwhile, investment loss of¥232,856 million from investment in listed stocks and other instruments was also recorded. In the previous fiscal
year, a gain of ¥1,218,527 million relating to settlement of prepaid forward contracts using Alibaba shares wasrecorded. For details, see “(a) Investment Business of Holding Companies Segment” under “b. Results by Segment.”
C Gain on Investments at SVF1, SVF2, and others

Realized gain on sales of investments (net) of ¥423,683 million was recorded as a result of the sale of all shares(including share exchanges with the shares of affiliated portfolio companies) or partial sale of shares by SVF1 insome of its portfolio companies. In addition, SVF1 recorded unrealized gain on valuation (net) totaling ¥4,285,133
million for listed portfolio companies, particularly Coupang, Inc. (“Coupang”), DoorDash, Inc. (“DoorDash”), andUber Technologies, Inc. (“Uber”), reflecting strong stock price performance, and ¥1,193,015 million for unlisted
portfolio companies, as a result of increases in the fair value of investments where listings have been decided orthat had new funding rounds. SVF2 recorded unrealized gain on valuation (net) of ¥490,255 million, mainly due tostrong stock performance of listed portfolio companies such as KE Holdings Inc. (“KE Holdings”). For details, see“(b) SVF1 and Other SBIA-Managed Funds Segment” under “b. Results by Segment.”

Primarily as a result of B and C, total gain on investments was ¥7,529,006 million.
D Finance Cost

Interest expenses increased ¥20,069 million in the Investment Business of Holding Companies segment and ¥4,167
million in the SoftBank segment. On the other hand, interest expenses decreased ¥13,128 million in the SVF1 andOther SBIA-Managed Funds segment.
E Income on Equity Method Investments

Income on equity method investments related to Alibaba was ¥572,516 million,3 a decrease of ¥87,626 million(13.3%) year on year. Despite continuing strong performance in Alibaba’s core operations, the decrease reflects aboost of ¥286,473 million in the previous fiscal year as a result of Alibaba acquiring newly issued shares (33%3 The Company applies the equity method to Alibaba’s consolidated financial statements (the Company’s economic interests in
Alibaba as of December 31, 2020: 25.02%) for a reporting period staggered by three months in the past because it is impractical toalign reporting periods with Alibaba due to contracts with the company, among others. Necessary adjustments are made to reflectsignificant transactions and events announced by Alibaba during the staggered three-month period.

15

SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2021

equity stake) of Ant Small and Micro Financial Services Group Co., Ltd. (currently Ant Group Co., Ltd., “AntFinancial”) using consideration from the transfer of certain intellectual property rights and assets held by Alibaba
to Ant Financial and its subsidiaries.
In addition, the Company’s income on equity method investments related to Alibaba was lowered by ¥74,270
million as Alibaba recorded an expense in the quarter ended March 2021 for the fine levied by China’s State Administration for Market Regulation pursuant to China’s Anti-Monopoly Law, which the Company recorded for the
fiscal year as a significant event in the staggered three-month period.
F Derivative Loss (Excluding Gain (Loss) on Investments)

Derivative loss of ¥504,048 million was recorded in connection with prepaid forward contracts using Alibaba shares
entered into in November 2019 and from April to August 2020 (including the impact of amendments to some of thecontracts made in October and November 2020).
Primarily as a result of A through F, income before income tax was ¥5,670,456 million, an increase of¥5,620,418 million year on year.
G Income Taxes

In addition to current income taxes recorded at SoftBank Corp. and Yahoo Japan Corporation, current income taxes
associated with the sale of T-Mobile shares were recorded. Meanwhile, deferred tax expenses were recorded due torevisions of the prepaid forward contracts using Alibaba shares. On the other hand, a credit of income taxes of¥256,060 million (profit) was recorded mainly due to the use of loss carryforwards, to which deferred tax assets had
not been recognized, against taxable income generated from the partial sale of SoftBank Corp. shares held through
SBGJ (see “3. Partial sale of SoftBank Corp. shares” under “PROGRAM TO SELL OR MONETIZE ¥4.5 TRILLION OF ASSETS (¥4.5 TRILLION PROGRAM)”).
H Net Income from Discontinued Operations

The Company recorded a gain of ¥720,842 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 ¥4,987,962 million.

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” to be posted in a few days on the Company’s website athttps://group.softbank/en/ir/presentations/.

16SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2021

b. Results by Segment
The Company’s reportable segments are the components of its business activities for which decisions on resource
allocation and assessment of performance are made. As of the fiscal year-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 in thefiscal year, see “CHANGES IN PRESENTATION OF CONSOLIDATED STATEMENT OF INCOME AND REPORTABLE SEGMENTS.” Along 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.”
The following is a summary of the reportable segments.
Segments

Main businesses

Core companies

Reportable segments
Investment Business · Investment activities by SBG and its subsidiarof Holding Comies
paniesSoftBank 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,sale of mobile devices, and provision of broadband and other fixed-line communications services in Japan· Internet advertising and e-commerce business

SoftBank Corp.
Z Holdings Corporation

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

Arm Limited· Smartphone payment business

PayPay Corporation· Alternative investment management business

Fortress Investment Group LLC· Investment activities by SoftBank Latin America Fund

SoftBank Latin America Fund L.P.

· Fukuoka SoftBank HAWKS-related businesses

Fukuoka SoftBank HAWKS Corp.

Other

17

SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2021

(a) Investment Business of Holding Companies Segment
1. Recorded gain relating to sales of T-Mobile shares of ¥421.8 billion, unrealized gain on valuationof ¥219.6 billion related to T-Mobile shares continued to be held by the Company, and derivative
gain of ¥264.4 billion resulting from an increase in the fair value of the Contingent Consideration
2. Completed the ¥4.5 trillion program*1
3. Recorded investment loss of ¥232.9 billion from investment in listed stocks and other instruments(total investment gain and loss of SBG and SB Northstar)Note:
1. For details of the sale and monetization of assets, share repurchases, and improvement of the Company’s financial status throughinitiatives such as debt reduction under the ¥4.5 trillion program, see “PROGRAM TO SELL OR MONETIZE ¥4.5 TRILLION
OF ASSETS (¥4.5 TRILLION PROGRAM) under (1) Overview of Results of Operations.”

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, SBGJ, asset management subsidiary
SB Northstar, and certain other subsidiaries engaged in investment and financing 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, but does not include 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 110 portfolio companies, including Alibaba, TMobile, and WeWork Inc. (“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 in WeWork shares held by SVF1 is 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, to diversify assets held by
the Company and to manage surplus funds. This has been done while being firmly committed to its stated financial
policies on its loan-to-value (LTV) ratio and cash position. These investments were made by SBG in the firstquarter, but from the second quarter, asset management subsidiary SB Northstar has been acquiring and selling
listed stocks and other instruments 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 status of the assets held by SBG.
The interest in SB Northstar is indirectly held 67% by SBG and 33% by SBG’s Representative Director, Corporate Officer, Chairman & CEO Masayoshi Son. Masayoshi Son’s interest is deducted from gain and loss on
investments at SB Northstar as a non-controlling interest; 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-

18

SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2021

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.
FINANCIAL RESULTS(Millions of yen)

Fiscal year ended March 31
2020
2021
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 gain 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 investments
Other
Selling, general and administrative expenses
Finance cost
Income on equity method investments
Derivative loss
(excluding gain (loss) on investments)
Other gain
Segment income (income before income tax)

Change Change %484,308

946,107461,79995.4%-

421,755

421,755-- (1,218,527)-

1,218,527

A-(20,537)(20,537)--

134,237

134,237-- (610,690)
17,777 222,161(690,669) 608,448(66,343) 185,769
5,016
4,964
(75,099) (102,276)(198,535) (218,604)
657,232 601,364(610,690)
204,384
1,299,117
252,112(52)(27,177)(20,069)(55,868)(1.0%)
36.2%
10.1% B
(8.5%) C(1,886) (477,536)
47,72011,872(475,650)(35,848)- D(75.1%)

913,740(152,813)(16.7%)

760,927

A Gain on investments: ¥946,107 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 sales 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 ¥20,537 million and unrealized gain
on valuation of investments at asset management subsidiaries of ¥134,237 million were recorded. This was due
to investments in listed stocks and other instruments by SB Northstar.
· Derivative loss on investments at asset management subsidiaries of ¥610,690 million was recorded. This wasdue to recording losses mainly related to call options on listed stocks and short stock index futures contracts at

19

SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2021

SB Northstar.
· Realized gain on sales of investments of ¥222,161 million and unrealized gain on valuation of investments of¥608,448 million were recorded. The former was mainly due to recording realized gain of ¥222,009 million on
investments SBG made in listed stocks. The latter was mainly due to the recording of valuation gain of ¥219,608
million on investment in T-Mobile shares recognized during the period from June 26, 2020 to the fiscal year-end,
as well as recording unrealized gain on valuation of investments of ¥124,420 million for Social Finance, Inc.,¥72,994 million for Lemonade, Inc., and ¥49,462 million for Berkshire Grey, Inc.4 to reflect an increase in theirfair values. Unrealized gain of ¥42,288 million on investments SBG made in listed stocks was also recorded.
· Derivative gain on investments of ¥185,769 million was recorded. This was mainly due to the recording of a gainof ¥264,395 million, representing a rise 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: ¥218,604 million (increased ¥20,069 million year on year)· Interest expenses at SBG5 increased ¥12,406 million to ¥210,649 million. This was mainly due to an increase ininterest-bearing debt as a result of wholly owned subsidiaries conducting fund procurement entering into several
prepaid forward contracts using Alibaba shares from April to August 2020 with financial institutions.
C

Income on equity method investments: ¥601,364 million (decreased ¥55,868 million year on year)· Income on equity method investments related to Alibaba was ¥572,516 million, a decrease of ¥87,626 million(13.3%) year on year. Despite continuing strong performance in Alibaba’s core operations, the decrease reflects
a boost of ¥277,175 million in the previous fiscal year as a result of Alibaba acquiring newly issued shares (33%equity stake) of Ant Financial using consideration from the transfer of certain intellectual property rights andassets held by Alibaba to Ant Financial and its subsidiaries.
In addition, the Company’s income on equity method investments related to Alibaba was lowered by ¥74,270
million as Alibaba recorded an expense in the quarter ended March 2021 for the fine levied by China’s State
Administration for Market Regulation pursuant to China’s Anti-Monopoly Law, which the Company recorded
for the fiscal year as a significant event in the staggered three-month period.
· Income on equity method investments of ¥24,736 million related to T-Mobile for the period from April 1 to June25, 2020 was recorded (such income was not recorded for the previous fiscal year).
D

Derivative loss (excluding gain (loss) on investments): ¥477,536 million· Derivative loss of ¥504,048 million was recorded in connection with the prepaid forward contracts using Alibaba
shares entered into in November 2019 and from April to August 2020 (including the impact of amendments tosome of the contracts made in October and November 2020).
4 The shares of Berkshire Grey, Inc. were transferred to SVF2 in March 2021.
5 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 Fiscal Year Ended March 31, 2021

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

Investor

Investment type

Consolidated Statement of Financial Position

Consolidated Statement of Income

Account

SBG

Actual stocks

SB Northstar Actual stocks, etc.

Credit transactions
Derivatives
Long call optionsof listed stocks
Short call optionsof listed stocks

Fiscal year-end balance Account(Parentheses show
liabilities)
Investment securities
Realized gain on sales ofinvestments*1
Unrealized gain (loss) on
15,535 valuation of investments*1
Investments from
Realized gain (loss) on sales
asset managementof investments at asset mansubsidiaries
755,250 agement subsidiaries
Securities pledged as
Unrealized gain (loss) on
collateral in asset manvaluation of investments
agement subsidiaries
1,427,286 at asset management
Borrowed securities*2(8,713) subsidiaries*3
Derivative financial
assets in asset management subsidiaries
176,627
Derivative financial
liabilities in asset management subsidiaries(9,283)

Short stock index
futures contracts
Total return swap Derivative financial
contracts related to assets in asset managelisted stocks
ment subsidiaries
Derivative financial
liabilities in asset management subsidiaries
Forward contracts Derivative financial
related to listed
assets in asset managestocks
ment subsidiaries- Derivative loss on investments at asset management
subsidiaries
7,057

Q1

Q2

Q3

Q4

Q1 - Q4

64,470102,768

40,681

14,090222,00920,88075,693(41,526)(12,759)

42,288-(8,060)(84,399)

71,922(20,537)-(95,082)

200,740

28,416

134,074-(292,346)(285,256)(33,088)(610,690)

85,350(217,027)(169,760)

68,581(232,856)-

131,829

56,305(22,417)

165,71785,350(85,198)(113,455)

46,164(67,139)(5,390)4,372

Notes:
Gain (loss) on investments
1. Some of the listed shares acquired by SBG during the first and second quarters were transferred to SB
at Investment Business ofNorthstar during the second quarter. The difference between the acquisition value paid by SBG and theHolding Companies
value for its transfer to SB Northstar (the “Difference Amount”) for a portion of the transferred shares thatwas sold outside the Group by SB Northstar is included in “realized gain (loss) on sales of investments.” Gain (loss) on investments
The Difference Amount for the portion of shares that continued to be held by SB Northstar at the end of
attributable to non-controlthe fiscal year is included in “unrealized gain (loss) on valuation of investments.” When SB Northstar sells ling interests*4
the listed shares outside the Group, the corresponding Difference Amount is reclassified from “unrealized
Gain (loss) on investments
gain (loss) on valuation of investments” to “realized gain (loss) on sales of investments.”
attributable to owners of
2. The fair value of the securities borrowed for short credit transactions.
the parent*5
3. After elimination of intercompany transactions
4. 33% of the gain (loss) on investments at SB Northstar
5. Excludes impacts such as selling, general and administrative expenses and tax expenses.

21

SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2021

Impact of the asset management subsidiaries on the Company’s Consolidated Statement of Financial Position*1
As of March 31, 2021
(Millions of yen)March 31, 2021

Cash and cash equivalents
Investments from asset management subsidiaries
Securities pledged as collateral in asset management subsidiaries
Derivative financial assets in asset management subsidiaries
Other financial assets
Other

221,281755,250
1,427,286
188,056
126,472
14,407

Total assets

2,732,752

Interest-bearing debt
Derivative financial liabilities in asset management subsidiaries
Other

1,866,521
14,673
19,226

Total liabilities

1,900,420

Investments from Delaware subsidiaries (defined below)*2

Equivalent amount of cash investments by SBG in Delaware subsidiaries
Equivalent amount of loans to Delaware subsidiaries held by SBG(the amount entrusted by SBG related to asset management)
Equivalent amount of cash investments by Masayoshi Son in Delaware subsidiaries
Retained earnings
Exchange differences on translating foreign operations
Equity1,348,963
39,786
1,289,284
19,893 A(506,265) B(10,366)
832,332

C

Notes:
1. SB Northstar’s statement of financial position, excluding the impact of Alibaba shares contributed in kind to SB Northstar by SBG
via Delaware subsidiaries and investments made by SB Northstar in SPACs controlled by SBIA, is presented for reference to show
the impact of SB Northstar on the Consolidated Statement of Financial Position of the Company.
2. Investment from the Company’s subsidiaries, Delaware Project 1 L.L.C., Delaware Project 2 L.L.C., and Delaware Project 3 L.L.C.
(“Delaware subsidiaries”), to the asset management subsidiary, SB Northstar.

(Calculation of non-controlling interests)
Equivalent amount of cash investments by Masayoshi Son in Delaware subsidiaries
Gain (loss) attributable to non-controlling interests*3
Exchange differences on translating foreign operations
Non-controlling interests (interests of Masayoshi Son)

(Millions of yen)
19,893 A(168,714)(4,043)(152,864) D

Note:
3. One-third of B in the table(Interests in equity (C above))(Millions of yen)
985,196

Interests of SBG
Non-controlling interests (interests of Masayoshi Son)

(152,864) D

Equity832,332

22

C

SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2021

Status of Assets
As of March 31, 2021
a. Actual stocks, etc.
(Millions of U.S. dollars)
Fair value as of March 31, 2021

Stock
AbCellera Biologics Inc.

265

Adobe Inc.

10

Alphabet Inc. Class C Capital Stock

575

Amazon.com, Inc.

6,211

Facebook, Inc.

3,182

Microsoft Corporation

1,030

Netflix, Inc.

382

Pacific Biosciences of California, Inc.

328

PayPal Holdings, Inc.

1,180

salesforce.com, inc.

385

Sana Biotechnology, Inc.

88

Taiwan Semiconductor Manufacturing Company Limited ADR

1,320

4D Molecular Therapeutics, Inc.

15

16 SPACs441*1

Including three SPACs controlled by SBIA

54

OthersNVIDIA Corporation

3,481
*2

140

OthersConvertible bonds

876

Total

19,907

Notes:
1. Investments into the three SPACs that are controlled by SBIA are eliminated as intercompany transactions in the consolidated financial statements.
2. The NVIDIA shares are held by SBG.

b. Derivatives
Fair value as of March 31, 2021

(Millions of U.S. dollars)
Notional principal*2

Long call options of listed stocks

1,595

13,386

Short call options of listed stocks(84)(2,691)

Total return swap contracts related to listed stocks

15

2,534

Forward contracts related to listed stocks

39

75

1,565

13,304*1

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

23

SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2021

MAIN INTEREST-BEARING DEBT IN THIS SEGMENT
Borrower

Type

Fiscal year-end balancein Consolidated Statementof Financial Position

SBG

Borrowings¥1,152.9 billion

Corporate bonds¥4,745.5 billion

Lease liabilities¥13.4 billion

Commercial paper¥246.5 billion(Wholly owned subsidiaries conducting fund procurement*1)
West Raptor Holdings, LLC
West Raptor Holdings 2, LLC
Skybridge LLC
Skylark 2020 Holdings Limited
Scout 2020 Holdings Limited
Tigress 2020 Holdings Limited

Prepaid forward contracts using Alibaba
shares (floor contracts and collar contracts)¥3,085.7 billion

Skywalk Finance GK

Borrowings using Alibaba shares¥894.1 billion

Moonlight Finance GK

Borrowings using SoftBank Corp. shares¥498.7 billion

Delaware Project 6 L.L.C.

Borrowings using T-Mobile shares¥481.3 billion

SB Northstar

Borrowings¥1,866.5 billion

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

Investments in WeWork
A wholly owned subsidiary of the Company other than SVF1 (hereinafter within “Investments in WeWork,” thewholly owned subsidiaries of the Company that invest in WeWork or are parties to contracts with WeWork are collectively referred to as the “WeWork Investment Subsidiary”) has invested in WeWork, an associate of the Company that
operates flexible office spaces. Separately, SVF1 has invested in WeWork and its affiliates. As of the fiscal year-end,
the cumulative amount of equity investments by the WeWork Investment Subsidiary and SVF1 in WeWork totaled$10.83 billion (not including a tender offer for a total of $922 million of shares completed in April 2021). The fairvalue of WeWork’s entire equity in the Company’s valuation was $3.8 billion as of the fiscal year-end.
On March 25, 2021, WeWork entered into a definitive agreement with BowX Acquisition Corp. (“BowX”), a special purpose acquisition company (SPAC), providing for a business combination with BowX that is expected to resultin WeWork becoming publicly listed on the Nasdaq Capital Market or New York Stock Exchange (NYSE) (the “Merger Transaction”). The Merger Transaction is expected to be completed during the three-month period ending September 2021, subject to receipt of BowX stockholder approval and the satisfaction of other customary closing conditions.
The transaction implies a pre-money enterprise value of the company resulting from the merger (the “Merged Company”) of approximately $9 billion. The transaction is expected to provide the Merged Company with approximately$1.3 billion of cash, including a fully committed $800 million PIPE (private investment in public equity), which will

24

SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2021

enable the Merged Company to fund its growth plans into the future. For details of the Merger Transaction, refer to thejoint press release announced by WeWork and BowX dated March 26, 2021, “WeWork to Become Publicly TradedVia SPAC Merger with BowX Acquisition Corp.” After the completion of the Merger Transaction, the Company’s
economic ownership of the Merged Company (fully diluted, including the stake held by SVF1) is expected to be approximately 56%. Pursuant to the certificate of incorporation of the Merged Company, the Company (together with
SVF1) will be restricted from exercising voting rights over more than 49.9% of the voting securities present and voting at any meeting of stockholders, and the Company (including SVF1) will be entitled to designate four out of nine
directors on the board of directors of the Merged Company. The Company hence does not have control over the
Merged Company. Therefore, the Merged Company will not be a subsidiary of the Company and instead it will be an
associate of the Company.
Details and progress of the agreements between the Company and WeWork dated October 22, 2019 (specifically, themaster transaction agreement, (the “MTA”)) and in the fiscal year are as follows.
(1) Exercise Price Reduction of Existing Commitment and Early Payment
Pursuant to the MTA, on October 30, 2019, the WeWork Investment Subsidiary paid the full amount of $1.5 billion
for the existing commitment that was originally expected to be invested in April 2020, by lowering the exercise pricefrom $110.00 per share to $11.60 per share. Of this advance payment for investment, a $200 million portion wasconverted into preferred stock of WeWork in November 2019 while the remaining $1.3 billion portion was converted
into preferred stock of WeWork in April 2020.
(2) Tender Offer
Pursuant to the MTA, the WeWork Investment Subsidiary had agreed to commence a tender offer (the “Tender Offer”) worth up to $3.0 billion to purchase common stock and preferred stock of WeWork from certain shareholdersof WeWork, other than the Company, at a price of $19.19 per share. The WeWork Investment Subsidiary launched
the Tender Offer in November 2019, but the WeWork Investment Subsidiary withdrew and terminated the Tender
Offer in April 2020, asserting certain closing conditions were not satisfied. In response, in April and May 2020, lawsuits (the “Lawsuits”) were brought against the Company and SVF1 by WeWork, under the direction of the Special
Committee of the Board of Directors of WeWork, and by the founder and former CEO of WeWork, Adam Neumann,by himself and through We Holdings LLC (his affiliated holding company), seeking closing of the Tender Offer, orin the alternative, compensation for damages arising from the termination of the Tender Offer.
The Company entered into a settlement agreement (the “Settlement Agreement”) regarding the Lawsuits with WeWork, We Holdings LLC, and Adam Neumann in February 2021. Under the Settlement Agreement, the WeWork
Investment Subsidiary agreed to purchase common stock and preferred stock of WeWork at a price of $19.19 per
share from (i) We Holdings LLC via a private sale in February 2021 and (ii) certain other shareholders of WeWork

via a tender offer launched in March 2021 and completed in April 2021. The aggregate amount of these two purchases was $1.5 billion. Each of the Lawsuits has been dismissed with prejudice.
The Company recorded an impairment loss of ¥54,277 million for the purchase of shares from We Holdings LLC,
representing the difference between the acquisition cost and the fair value at the time of the acquisition. Subsequently, the Company recorded a gain on reversal of impairment loss of ¥21,634 million, reflecting an increase in the25SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2021

fair value of its holdings of common stock following the conclusion of the Merger Transaction between WeWork
and BowX.
The tender offer launched, pursuant to the Settlement Agreement, in March 2021 was considered as a forward
contract and accounted for as a derivative. The difference of ¥76,823 million between the fair value of the common
stock and preferred stock scheduled for acquisition and the planned acquisition amount was recorded as “derivative
financial liabilities (current)” in the Consolidated Statement of Financial Position as of the fiscal year-end. Moreover, for the fiscal year, the difference of ¥17,594 million between the fair value of the common stock scheduled for
acquisition and the planned acquisition amount was recorded as “derivative loss (excluding gain (loss) on investments)” and the difference of ¥56,127 million between the fair value of the preferred stock scheduled for acquisition and the planned acquisition amount was recorded as a loss under “gain (loss) on investments at Investment
Business of Holding Companies” in the Consolidated Statement of Income.
(3) Credit Support and Notes Purchase
The Company agreed in the MTA to provide to WeWork (a) credit support for a $1.75 billion letter of credit facility
provided by financial institutions, and the WeWork Investment Subsidiary agreed to purchase or arrange to purchase(b) up to $2.2 billion in unsecured notes and (c) up to $1.1 billion in senior secured notes to be issued by WeWork.
Regarding (a), in December 2019, the Company entered into an agreement with financial institutions that designates the Company as a co-obligor with WeWork, while the two parties separately agreed that the Company has theright of indemnification against WeWork if and whenever the Company services such obligations. Regarding (b), theWeWork Investment Subsidiary entered into an agreement with WeWork in December 2019. As of the fiscal yearend, the WeWork Investment Subsidiary has purchased $1.8 billion of the unsecured notes. In exchange for entering
into such agreements regarding (a) and (b), the Company received warrants that are exercisable for WeWork preferred stock at an exercise price of $0.01 per share as consideration. As of the fiscal year-end, the Company has acquired 130 million shares of preferred stock of the 136 million shares available under the warrants.
Regarding (c), the Company’s obligation pursuant to the MTA to purchase or arrange to purchase such debt
ceased to exist upon the termination of the Tender Offer as it was subject to and conditioned upon the completion of
the Tender Offer. However, the WeWork Investment Subsidiary and WeWork entered into an agreement regarding(c) in August 2020. As of the fiscal year-end, none of the secured senior notes had been issued.
Moreover, in conjunction with WeWork’s agreement relating to the Merger Transaction with BowX on March 25,
2021, the Company has also agreed with WeWork and BowX regarding the conversion and exchange of WeWork
preferred stock held by the WeWork Investment Subsidiary into common stock of the Merged Company, and in addition, regarding (a), a commitment to extend credit support by the Company as co-obligor to the credit facility until
February 2024, subject to the acceptance of the extension by the financial institutions as a result of the negotiation
between them and the Company together with WeWork, and for (c), an amended senior secured notes facility of up
to $550 million to be purchasable by the WeWork Investment Subsidiary until February 12, 2023 or for a period of
18 months from the closure of the Merger Transaction, whichever comes first. As consideration for this conversion
of preferred stock into common stock and commitment to extend credit support by the Company as co-obligor to thecredit facility as in (a), the Company plans to acquire warrants that are exercisable for common stock of the Merged
Company at the price of $0.01 per share, subject to appropriate adjustment, when each is executed upon the conversion and exchange and upon the conclusion of the agreement modification of (a), as applicable.

26

SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2021

The (a) credit support for a $1.75 billion letter of credit facility provided by financial institutions to WeWork corresponds to a financial guarantee contract and the (b) purchase of up to $2.2 billion in unsecured notes to be issued by
WeWork corresponds to a commitment to provide a loan at a below market interest rate (“loan commitment”). The
allowance for expected credit losses for the financial guarantee contract and loan commitment is measured at thehigher of either the amount of initially recognized financial liabilities less accumulated amortization or the amount of
the expected credit losses. At the previous fiscal year-end, the Company recorded allowance for financial guarantee
contract losses of ¥89,202 million and allowance for loan commitment losses of ¥145,133 million as “other financial
liabilities (current)” in the Consolidated Statement of Financial Position. At the fiscal year-end, the Company recorded allowance for financial guarantee contract losses of ¥24,381 million and allowance for unused loan commitment losses of ¥10,218 million as “other financial liabilities (current)” in the Consolidated Statement of Financial
Position.
(4) Exchange of WeWork China and WeWork Asia Shares for Preferred Stock of WeWork
It was agreed in the MTA that all of SVF1’s interests in WeWork Greater China Holding Company B.V. (“WeWork
China”) and WeWork Asia Holding Company B.V. (“WeWork Asia”) were to be exchanged for preferred stock of
WeWork. Among these, WeWork Asia shares were exchanged for WeWork’s preferred stock at $11.60 per share in
April 2020. Meanwhile, the exchange of WeWork China shares for WeWork’s preferred stock was canceled.

27SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2021

Investments and loans to WeWork from the WeWork Investment Subsidiary(Millions of U.S. dollars)

Investment
type

Cumulative
amount ofinvestments
and loans

Common stock

Preferred stock
Of $1.5 billion paid in October 2019, $1.3 billion
before conversion to preferred stock of WeWork asof the previous fiscal year-end
Warrants exercisable for acquisition of preferredstock of WeWork (before exercise)
Warrants exercisable for common stock of the
Merged Company (before exercise)
Derivatives related to the tender offer that started
in March 2021

Breakdownomitted

6,580

Purchase of unsecured notes*2

1,800

Liabilities related to financial guarantee contract*2
Total(6,292)-(256) Other financial liabilities

1,800

(109)
(307)
112

(22)

126

-

126

-

(166)

-

Derivative loss
(excluding gain (loss) on
investments)
Derivative loss on(694) investments

-

(528)

(5,380)

(894)

-

44

(826)

570

1,470

44 Other financial assets

The fiscal
year

Derivative financial
liabilities

Total

Liabilities related to loan commitment*2

Cumulative Consolidated Statement of Financial Position
Consolidated Statement of Income
gain (loss)
Account
Carrying amountAccount
Gain (loss)(Parentheses show liabilities)
The previous
The fiscal
The previous
fiscal year-end
year-endfiscal year
Investment securities
Loss from financial- instruments at FVTPL(417)
Investments accounted
Loss on equity method
for using the equity
investments*1(40)
method14173 Other loss
(113)
Investment securities
885
1,521 Gain (loss) from
(3,213)
financial instruments
Other financial assets
at FVTPL
Breakdown
406(894)
omitted
Derivative financial
Derivative gain (loss)
assets165
26 on investments
(703)

-

1,152
1,173 Other gain (loss)(1,334)

(92)

140

(819)

(220)

(459)

599

(72)

(2,153)861(1,285)

1,213

Notes:
1. WeWork became the Company’s associate on October 30, 2019. As a result, net loss of WeWork from October 30, 2019 to December 31, 2021 corresponding to the Company’s holding of common stock (2.75% as of theprevious fiscal year-end and 6.11% as of the fiscal year-end, both of which were before dilution) was recorded.
2. Allowances for losses from the financial guarantee contract and the loan commitment are recorded as “other financial liabilities” in the Consolidated Statement of Financial Position. The Company did not record gains orlosses relating to the agreement on these contracts on the Consolidated Statement of Income at the time of execution, since the Company acquired consideration for the agreement (warrants convertible for preferred stockof WeWork at $0.01 per share). Subsequently, at the previous fiscal year-end, the Company recorded provision for allowance for losses following a deterioration in WeWork’s credit risk, which was reversed during the
fiscal year mainly due to the improvement of WeWork’s credit risk. For liabilities related to the loan commitment, when the WeWork Investment Subsidiary purchased the unsecured notes, a corresponding amount was
reversed from “other financial liabilities” and deducted from the initial recognition amount of loan receivable recorded as “other financial assets.” The unsecured notes are regularly amortized from the time when the loan
receivable was recognized. Liabilities related to financial guarantee contract are regularly amortized from the fourth quarter of the previous year, when the guarantee started.

28

SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2021(b) SVF1 and Other SBIA-Managed Funds Segment
1. Gain on investment (net) was ¥6,357.5 billion. Segment income, after deducting change in thirdparty interests, was ¥4,026.8 billion.
 SVF1- Realized gain on sales of investments (net) of ¥424.2 billion: Sold investments in Guardant Health(partially), OSIsoft, Uber (partially), and others.
- Unrealized gain on valuation of investments (net) of ¥5,523.1 billion from investments held at the
fiscal year-end· Recorded ¥4,285.1 billion valuation gain for listed portfolio companies.
Stock prices of all listed portfolio companies performed well. Valuation gain of ¥2,597.8 billion
was recorded for Coupang and ¥661.1 billion for DoorDash.
· Recorded ¥1,238.0 billion valuation gain (net) for unlisted portfolio companies.
 SVF2- Unrealized gain on valuation of investments (net) of ¥490.3 billion:· Recorded ¥494.1 billion valuation gain for KE Holdings and other listed portfolio companies,
reflecting strong stock price performance.
2. Progress of investments
 SVF1- Investments before exit: Held 81 investments (including 11 listed portfolio companies) as of the
fiscal year-end at cost totaling $74.9 billion, with the fair value amounting to $120.7 billion.
- Cumulative gross gain*1 since SVF1’s inception reached $55.0 billion, including cumulative realized
gain of $7.2 billion, cumulative derivative gain of $1.5 billion, and cumulative dividend income of$0.5 billion.
 SVF2- Held 44 investments (including three listed portfolio companies) as of the fiscal year-end at cost
totaling $6.7 billion, with the fair value amounting to $11.2 billion.
 Other- In the fourth quarter, three SPACs controlled by SBIA were listed.
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.” SVF1’s investment period ended on September 12, 2019.
The remaining undrawn capital is reserved for follow-on investments in existing portfolio companies (including
investments in joint ventures with them), fixed distributions, and operating expenses. In principle, the life of SVF1
is until November 20, 2029 (unless extended for two additional one-year periods by SBIA).
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 the fiscal year-end, SBG is the sole limited partner investing in SVF2, with a total committed capitalof $20.0 billion (which has been increased to $30.0 billion as of May 11, 2021).
To bridge the Company’s private and public investing strategies by enabling it to potentially pursue a wider

29

SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2021

range of investment opportunities beyond the investment mandate for the private funds, in the fiscal year, SBIA
initiated investment through SPACs. In the fourth quarter, SPACs controlled by SBIA, SVF Investment Corp.,
SVF Investment Corp. 2, and SVF Investment Corp. 3, listed on the Nasdaq in January, March, and March 2021,
respectively. A total of $1.15 billion was raised through these listings. Each SPAC is an investment vehicle incorporated for the purpose of effecting a merger, share exchange, asset acquisition, share purchase, reorganization orsimilar business combination with one or more businesses that the company has not yet identified at the time ofthe offering, and it aims to complete such business combination within two years from the closing of each offering.
The SPACs intend to identify, acquire, and manage businesses in technology-enabled sectors, leveraging the Company’s access to a wide range of compelling investment opportunities through its broad international presence anddeep local networks. After such business combinations, the combined companies are expected to cease to be controlled by SBIA.
For details of SPACs, see “5. Special purpose acquisition companies sponsored by the Company” under “(6)Notes to Consolidated Financial Statements” in “4. Consolidated Financial Statements and Primary Notes.”
Outline of principal funds in the segment
As of March 31, 2021
SoftBank Vision Fund 1

SoftBank Vision Fund 2

SoftBank Vision Fund L.P.

SoftBank Vision Fund II-2 L.P.

98.6
The Company: 33.1*1
Third-party investors: 65.5
SVF GP (Jersey) Limited(The Company’s wholly owned overseas subsidiary)

20.0
The Company: 20.0*2

Investment period

Ended on September 12, 2019

Minimum fund life

Until November 20, 2029 (in principle)(Investment period and minimum fundlife are not presented as they are subject
to change following the participation of
third-party investors.)

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

SVF II GP (Jersey) Limited(The Company’s wholly owned overseas subsidiary)

Notes:
1. The Company’s committed capital to SVF1 includes approximately $8.2 billion of an obligation satisfied by using Arm shares (allsaid shares have been contributed) and $2.5 billion earmarked for purposes of an incentive scheme related to SVF1.
2. As of May 11, 2021, the Company’s committed capital to SVF2 has been increased to $30.0 billion.
For a complete list of SVF1 and SVF2’s portfolio companies, see the Data Sheets in “Materials” under “Earnings Results Briefing” to be posted in a few days on the Company’s website at https://group.softbank/en/ir/presentations/.

30

SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2021

Capital deployment of SVF1
As of March 31, 2021
Total
98.6
85.4
13.8
71.6
13.2

Committed capital (A)Drawn capital6 (B)Return of capital (non-recallable) (C)Outstanding capital (D) = (B) – (C)Remaining committed capital (E) = (A) – (B)The Company
33.1
29.3
0.8
28.5
3.8

(Billions of U.S. dollars)
Third-party investors
65.5
56.1
13.0
43.1
9.4

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

As of the fiscal year-end, SBG has contributed $6.8 billion of its committed capital to SVF2.
FINANCIAL RESULTS(Millions of yen)

Fiscal year ended March 31
2020
2021
Gain (loss) on investments at SVF1, SVF2,
and others
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 past fiscal 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
Segment income (income before income tax)

ChangeChange %(1,844,867)
58,3406,357,462
419,640

8,202,329
361,300

619.3%

A(1,917,694)(1,877,682)

5,897,059
6,013,404

7,814,753
7,891,086-(40,012)
12,848145
1,494(86,484)(23,547)
540,930
1,394(1,412,574)(116,345)
29,8491,091
9,823(74,194)(10,419)(2,246,417)
391
4,026,823(76,333)
17,001
946
8,329
12,29013,128(2,787,347)(1,003)5,439,397

132.3%
652.4%
557.5%(14.2%)(55.8%) B- C(72.0%)-

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

During the fiscal year, SVF1 made follow-on investments totaling $4.7 billion in existing portfolio companies andtheir joint ventures,7 and sold all of its shares in eight portfolio companies7 and a portion of its shares in five
portfolio companies for a total of $8.8 billion,8 of which the initial acquisition costs were $4.8 billion. SVF2 madenew and follow-on investments totaling $4.7 billion.

6 Drawn capital of SVF1 excludes the amount repaid to limited partners due to investment plan changes and other reasons after thecapital was drawn.
7 Includes share exchanges. During the fiscal year, SVF1 exchanged all of its shares in three portfolio companies for shares in theiraffiliated companies. Such share exchanges are treated as exits from investments and acquisitions of new investments, with the saleprice 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.
8 After deducting transaction fees, etc.

31SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2021

Segment income
A Gain on investments at SVF1, SVF2, and others: ¥6,357,462 million· SVF1- Realized gain on sales of investments of ¥424,215 million was recorded as a result of the sale by SVF1 of allof its shares in eight portfolio companies7 and a portion of its shares in five portfolio companies.
- Unrealized gain on valuation of investments held by SVF1 at the fiscal year-end was ¥5,523,149 million($52,186 million, net) (see “Portfolio of SVF1” below for a breakdown). Unrealized valuation gain totaling$40,507 million for listed portfolio companies was recorded due to strong stock price performance, particularly of Coupang and DoorDash, which were listed in the fiscal year, and Uber. In addition, unrealized valuation gain (net) totaling $11,679 million was recorded for unlisted portfolio companies, as a result of increases
in the fair values of investments where listings have been decided or that had new funding rounds.
· SVF2- Unrealized gain on valuation of investments was ¥490,255 million ($4,633 million, net). This was primarily
due to the recording of unrealized valuation gain totaling $4,671 million for listed portfolio companies, reflecting the share price increases of KE Holdings and other listed portfolio companies following their listings
in the fiscal year. See “Portfolio of SVF2” below for other details.
B

Finance cost: ¥10,419 million (decreased ¥13,128 million year on year)

Interest expenses decreased primarily due to a decline in the outstanding balance of borrowings made by SVF1,
resulting from the repayments of borrowings made under a line of credit set up mainly to increase capital efficiency
to fund investments (the “Fund Level Facility”) and those made for the purpose of monetizing a portion of certain
investments (the “Portfolio Financing Facility”).
C Change in third-party interests in SVF1: ¥(2,246,417) 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. For details, see “(2)Third-party interests in SVF1” under “6. SVF1 and other SBIA-managed funds business” in “(6) Notes to Consolidated Financial Statements” in “4. Consolidated Financial Statements and Primary Notes.”
As of the fiscal year-end, SVF2 is only invested in by SBG and therefore has no third-party interests.

32

SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2021

Portfolio of SVF1
As of March 31, 2021
(Billions of U.S. dollars)
Total ((1) + (2) + (3) + (4) below)
Cumulative numberof investments
92

Cumulative
investment cost
A1+B1+C1
85.7

Cumulative
investment returnA2+B2+C2+D2
140.7

Cumulative gain*1
A3+B3+C3+D3
55.0(1) Investments before exit (investments held at the fiscal year-end)
Number ofinvestments
Sectora Consumerb Edtechc Enterprised Finteche Frontier Techf Health Techg Logistics
h Proptechi Transportation
Total

12
1
7
11
9
8
14
9
10
81

(Reference)
Listed companies*3
a Coupangd OneConnectd ZhongAn Insurance
f Guardant Healthf Relay Therapeutics
f Vir Biotechnology
g DoorDashh Opendoorh Viewi AUTO1i UberUnlisted companies
Total

Investment cost
A1
10.6
0.7
1.6
4.4
11.0
2.0
8.5
10.1
26.0
74.9

Fair value
A2
42.6
1.1
1.9
2.7
11.7
4.8
18.0
6.2
31.7
120.7

Cumulative
unrealized valuation
gain (loss)*2
A3
32.0
0.4
0.3
(1.7)
0.7
2.8
9.5
(3.9)
5.7
45.8

13.0
2.7
0.1
0.2
0.1
0.3
0.2
0.7
0.4
1.2
0.7
6.4
61.9
74.9

54.0
28.0
0.1
0.2
0.9
1.0
1.2
8.3
1.5
0.5
2.3
10.0
66.7
120.7

41.0
25.3
(0.0)
(0.0)
0.8
0.7
1.0
7.6
1.1
(0.7)
1.6
3.6
4.8
45.8

40.5
24.5
0.0
0.1
0.5
0.7
0.4
6.3
1.2
0.1
1.8
4.9
11.7
52.2

Investment cost
B1
2.4
8.4
10.8

Sale price
B2
4.7
13.3
18.0

Cumulative
realized gain*1
B3
2.3
4.9
7.2

Realized gainrecorded for the
fiscal year
2.0
2.0
4.0

Fair value /settlement price
C2
1.5

Cumulative
derivative gain
C3
1.5

Derivative gainrecorded for the
fiscal year
0.0

Dividend income
D2
0.5

Cumulative income
D3
0.5

Dividend income
recorded for the
fiscal year
0.3

11

70
81

Unrealized valuation gain (loss)
recorded for the
fiscal year
30.6
0.4
0.0
(1.9)
1.1
1.9
9.0
1.1
10.0
52.2

(2) Exited investments
Number ofinvestments
Partial exit
Full exit7
Total

11
11

(3) Derivative gain and loss relating to investment

Total (settled)

Derivative cost
C1
0.0(4) Dividend income from investments

Total

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

33

SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2021

Portfolio of SVF2
As of March 31, 2021
(Billions of U.S. dollars)
Total ((1) + (2) below)
Cumulative
number ofinvestments
44

Cumulative
investment cost
A1+B1
6.7

Cumulative
investment
returnA2+B2
11.2

Cumulative
gain*1
A3+B3
4.5

Fair value*2
A2
6.2
6.0
0.2
0.0
5.0
11.2

Cumulative
unrealized
valuation
gain (loss)
A3
4.6
4.6
0.0
0.0
(0.1)
4.5

Unrealized valuation gain
(loss) recorded
for the fiscal
year
4.7
4.6
0.1
0.0
(0.1)
4.6

Sale price
B2
0.0
0.0

Cumulative
realized loss*1
B3
(0.0)
(0.0)

Realized loss
recorded forthe fiscal year
(0.0)
(0.0)

(1) Investments before exit (investments held at the fiscal year-end)

Company
Listed companies
KE Holdings
Seer
Qualtrics
Unlisted companies
Total

Number ofinvestments Investment cost*2
A1
3
1.6
1.4
0.2
0.0
41
5.1
44
6.7

(2) Exited investments
Number ofinvestments
Partial exit
Total

-

Investment cost
B1
0.0
0.0

Notes:
1. Before deducting third-party interests, tax, and expenses
2. The investment amount and fair value of investments before exit in SVF2 include those related to a minor SVF2 ownership percentage inanother portfolio company received as part of the consideration for SVF2’s investment in a portfolio company.

34

SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2021

Listings and announced listing plans for SVF1 and SVF2 portfolio companies
As of March 31, 2021; excluding those already listed at the time of investment

Fund
SVF1

SVF2

Company
Investments before exit
ZhongAn Insurance
Guardant Health
Uber
Vir Biotechnology
OneConnect
Relay Therapeutics

Listing dateListing method

September 28, 2017
October 4, 2018
May 10, 2019
October 11, 2019
December 13, 2019
July 16, 2020

IPO
IPO
IPO
IPO
IPO
IPO

DoorDash
Opendoor
AUTO1
View
CoupangCompass
WeWorkExited investments
Ping An Good Doctor
Slack
10x Genomics
Investments before exit
KE Holdings
Seer
Qualtrics
Berkshire GreyeToro

December 9, 2020
December 21, 2020
February 4, 2021
March 9, 2021
March 11, 2021
April 1, 2021
September quarter, 2021 (expected)

IPO
De-SPACIPO
De-SPACIPO
IPO
De-SPAC9,10

May 4, 2018
June 20, 2019
September 12, 2019

IPO
Direct listing
IPO

August 13, 2020
December 4, 2020
January 28, 2021
June quarter, 2021 (expected)
September quarter, 2021 (expected)

IPO
IPO
IPO
De-SPAC10,11
De-SPAC10,12

9 The merger between WeWork Inc. and BowX Acquisition Corp., a SPAC, was announced on March 26, 2021 (U.S. time). For details, see “Investments in WeWork” under “(a) Investment Business of Holding Companies Segment.”
10 The mergers are subject to receipt of stockholder approval of respective SPACs and the satisfaction of other customary closing
conditions. The mergers have not yet closed as of May 12, 2021.
11 The merger between Berkshire Grey, Inc and Revolution Acceleration Acquisition Corp, a SPAC, was announced on February 24,
2021 (U.S. time).
12 The merger between eToro Group Ltd. and FinTech Acquisition Corp. V, a SPAC, was announced on March 16, 2021 (U.S. time).

35

SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2021

(c) SoftBank Segment
1. Segment income increased 4.0% yoy: Z Holdings Corporation and the enterprise business performed strongly.
2. Business integration of Z Holdings Corporation and LINE Corporation completed on March 1, 2021.
(Millions of yen)

Fiscal year ended March 31
2020
2021
Net sales
Segment income (income before income tax)
Depreciation and amortization
Gain on investments
Finance cost
Loss on equity method investments*1
Derivative gain (loss) (excluding gain (loss)
on investments)

ChangeChange %4,862,484
815,6175,204,350
847,933

341,866
32,316

7.0%
4.0%(701,984)
9,720(60,155)(41,839)(729,914)
1,433(64,322)(45,048)(27,930)(8,287)(4,167)(3,209)4.0%(85.3%)
6.9%
-

(20)

410

430

-

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 associate; 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” in segment information.

FINANCIAL RESULTS
Segment income increased ¥32,316 million (4.0%) year on year, to ¥847,933 million, mainly reflecting strong
performances by Z Holdings Corporation and the enterprise business. These were partially offset by a negative
impact from recording an impairment loss on equity method investments in WeWork Japan GK and a deteriorationin 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 enterprise 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.
For the consumer business, income increased year on year, mainly due to a decline in sales commissions and thereversal of contract liabilities related to Half Price Support13 in revenues.
Completion of business integration of Z Holdings Corporation and LINE Corporation
On March 1, 2021, the business integration of Z Holdings Corporation and LINE Corporation was completed.
SoftBank Corp. has positioned this integration as an important transaction for accelerating the growth of Z Holdings Corporation, which plays an important role in the Beyond Carrier strategy, and for contributing to the increasein corporate value while creating new business opportunities in the 5G era. After the integration, Z Holdings Corporation will strive to resolve social issues while capturing unmet customer needs using data and AI.

13 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

36

SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2021

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. Arm introduces major new technology as a basis for future product families During the fourth quarter, Arm introduced the Armv9 architecture which will be the underlying
technology for many future product families that Arm will release. The Armv9 architecture provides
the users of smartphones, consumer electronics and enterprise products with higher performance aswell as enhanced security, privacy and confidentiality. The Armv9 architecture is a significant
advancement over prior generations and provides an opportunity to increase pricing, driving license
revenue in the near term and royalty revenue as Armv9-based products start to ship.
2. Expanding product portfolio contributes to the financial results
 Net sales increased 6.5% yoy- Technology royalty revenue increased 16.7% yoy (U.S. dollar-based) largely due to the strong ramp
in 5G smartphones and networking equipment as well as increasing shipments into servers.
- Technology non-royalty revenue decreased 1.7% yoy (U.S. dollar-based). Weaker licensing at the
beginning of the fiscal year, due to uncertainty caused by the pandemic, being mostly offset bystrong demand for Arm’s expanding product portfolio since the Company’s acquisition.
 Segment loss widened yoy mainly due to charges relating to share-based remuneration following theagreement for sale of all shares in Arm to NVIDIA.

(Millions of yen)

Fiscal year ended March 31
2020
2021
Net sales
Segment income (income before income tax)

197,066(11,105)

209,848(33,873)

ChangeChange %12,782(22,768)

6.5%-

Notes:
1. In the fourth quarter, it was decided that the ISG businesses, which are outside the scope of the agreement made for sale of Armshares to NVIDIA, would be managed separately from Arm’s remaining business. Accordingly, the operating results of the Armsegment are retroactively presented for the previous fiscal year excluding the contribution of the ISG businesses.
2. Segment income includes amortization expenses of ¥48,108 million for the fiscal year and ¥50,544 million for the previous fiscal
year. These expenses are related to intangible assets recognized in the purchase price allocation at the time of the acquisition of
Arm.

OVERVIEW
Arm’s operations primarily consist of licensing of semiconductor intellectual property (IP), including the designof energy-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.

37SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2021

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, as well as the impact fromchanges in economic activity caused by COVID-19. If shipments of consumer electronic 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 when these
events may occur and the impact on the whole semiconductor industry or Arm.
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)

Fiscal year ended March 31
2020
2021

ChangeChange %Technology royalty
Technology non-royalty

1,095
714

1,278
702

183
(12)

16.7%
(1.7%)

Total net sales

1,809

1,980

171

9.5%

Net sales increased $171 million (9.5%) year on year due to an increase in technology royalty revenue.
Technology royalty revenue
Technology royalty revenue increased $183 million (16.7%) year on year. Royalty revenues were driven by thestrong ramp in shipments of Arm-based 5G smartphones and the deployment of networking equipment into 5Gbase stations as well as increasing shipments into servers.
Technology non-royalty revenue
Technology non-royalty revenue (technology licensing revenue and software and services revenue) declined $12
million (1.7%) year on year. This decline is primarily due to weaker licensing by customers in the first quarter,
when the impact of COVID-19 was uncertain. However, as it became clear that semiconductor sales were goingto remain strong, demand for Arm new technology increased from the second quarter. Since being acquired by theCompany, Arm has increased investment in R&D, which has now resulted in a product portfolio that has expanded
the breadth of Arm technology to include processors optimized for servers, automotive electronics, and AI acceleration. This has led to a wider range of customers licensing Arm technology, as well as existing customers having
more Arm technology to choose from, both of which are helping to drive licensing revenues. This included licenses
for processors used by customers intending to build Arm-based server chips, smartphones, networking equipment
and for autonomous systems such as industrial robotics and self-driving vehicles.

38SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2021

Segment income
Segment loss was ¥33,873 million, deteriorating by ¥22,768 million year on year. This was mainly due to therecording of charges relating to the increases in the fair value of share-based remuneration already granted to Arm
employees relating to share-based remuneration following the agreement for sale of all shares in Arm to NVIDIA
and the expected acceleration of the vesting date that were triggered by the proposed acquisition of Arm by
NVIDIA (including one-off charges).
In addition, as Arm continues to enhance its R&D capabilities by hiring more employees, mainly technologyrelated personnel, the number of Arm employees at the fiscal year-end increased 7.9% from the previous fiscal
year-end.
OPERATIONSRoyalty units14(Billion)

Year ended December 31
2019
2020
Royalty units as reported by Arm’s licensees

22.2

25.0

ChangeChange %

2.8

12.7%

Arm’s licensees reported shipments of 25.0 billion Arm-based chips shipped in the year ended December 31, 2020,
representing the highest-ever number of chips shipped in a year. Arm’s unit shipments increased 12.7% year on
year, while shipments by the Arm-relevant part of the semiconductor industry increased 6.7%15 during the same
period.
TECHNOLOGY DEVELOPMENT
Arm considers the following as its primary areas for increased investment and is evolving the technology in both
its mobile business and other businesses with strong growth potential.
Arm’s primary investment areas and main developments
Mobile computing
Opportunity: Arm already has over 95% share of the main chips in mobile devices and, over time, hasbeen successfully increasing royalties per chip.
The first quarter: Arm announced the introduction of a new technology family for premium smartphones,
including a processor, a machine learning accelerator, and a graphics processor.
The second quarter : 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.
The third quarter: · Qualcomm Technologies, Inc. announced the Snapdragon 888 chip for next-generation
5G smartphones based on the Arm Cortex-X1 processor.
· MediaTek Inc. announced the MT8195 chipset designed for next-generation mobile
computers, including Chromebooks, based on the Arm Cortex-A78 CPU and Arm Mali
G57 GPU.
14 This analysis is based on the actual shipments of royalty units (chips incorporating Arm technology) by Arm licensees for the year
ended December 31, 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.
15 Worldwide Semiconductor Trade Statistics (WSTS) as of April 2021. 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.

39

SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2021

The fourth quarter:· Arm introduced Armv9, its latest architecture for future processors.
· MediaTek Inc. announced that it has already adopted Armv9 and its first chips incorporating the new technology will be available later in 2021 for smartphones to be shippedin 2022.

Infrastructure
Opportunity:

The first quarter:

The second quarter:

The third quarter:

The fourth quarter:

Arm has a growing share in networking infrastructure and a nascent share in data center
servers.
· Supercomputer Fugaku with Arm technology for servers, jointly developed by RIKEN
and Fujitsu Limited, 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 applications.
Amazon Web Services, Inc. launched new services optimized for networking applications, based on its Arm-based Graviton2 chips which deliver 40% better price/performance relative to the prior generation (not Arm-based).
NVIDIA announced a new Arm-based chip Grace which will combine NVIDIA’s GPU
technology with Arm’s CPU technology, and that the Swiss National Supercomputing
Centre will build a new supercomputer utilizing this new chip.

Automotive
Opportunity:

The first quarter:

The second quarter:

The third quarter:

IoT
Opportunity:

The second quarter:

The third quarter:

The fourth quarter:

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.
Telechips Inc., a leading automotive technology provider, announced that it has adopted asuite of Arm technology for its next automotive chip including the Mali-G78AE graphics
processor, Cortex-A76 processor, and Ethos-N78 AI processor.

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 the Cortex-R82 processor, designed specifically forcomputational storage16 a new market segment that will help enable IoT gateways, whichconnect IoT devices and the network, and edge servers.
NXP Semiconductors N.V. announced that it will expand its Arm-based i.MX products
for the Industrial and IoT Edge with the integration of Arm’s Ethos AI processors.
STMicroelectronics N.V. and Silicon Laboratories Inc. separately announced new highly
secure chips for IoT devices helping to achieve the goal of making IoT networks resistantto cyberattacks.

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

16 Data storage devices with computational capabilities

40SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2021(e) Other(Millions of yen)

Fiscal year ended March 31
2020
2021

ChangeChange %Net sales
Segment income (income before income tax)

205,772(299,703)

238,591
92,62532,819392,328

15.9%-

Depreciation and amortization
Gain (loss) on investments
Finance cost
Income on equity method investments
Derivative gain (loss)(excluding gain (loss) on investments)(46,587)(59,626)(17,018)(30,169)(42,954)289,241(16,621)
21,578

3,633
348,867
397
51,747(7.8%)(2.3%)-

2,594(3,972)(6,566)-

Note: Starting in the fiscal year, the operating results of Arm’s ISG businesses are included in “Other” in the reportable segments.
The results for the previous fiscal year have also been retrospectively revised for presentation.

Segment income for “Other” in the reportable segments totaled ¥92,625 million. The Company recorded
income before income tax of ¥188,883 million at SoftBank Latin America Fund and ¥57,107 million at Fortress
Investment Group LLC (“Fortress”). Conversely, loss before income tax of ¥72,650 million at PayPay
Corporation was recorded.
An overview of these results and operations follows.
· Investment fund business in Latin America
SoftBank Latin America Fund recorded gain on investments of ¥196,556 million following a rise in the fairvalue of its investments, resulting in income before income tax of ¥188,883 million. As of the fiscal year-end,
the fund held 37 investments and had invested a cumulative total of $2,605 million, with a fair value of $4,013
million. During the fourth quarter, one SPAC controlled by a subsidiary as a sponsor in the investment fundbusiness in Latin America was newly listed on the Nasdaq.
· Fortress
Fortress recorded gain on investments of ¥88,411 million due to a rise in the fair value of its investments,
resulting in income before income tax of ¥57,107 million. During the fiscal year, five SPACs controlled byFortress were newly listed, and one of these was merged with an operating company and excluded from thescope of consolidation. Furthermore, another SPAC announced a planned merger with an operating company.
For details of SPACs, see “5. Special purpose acquisition companies sponsored by the Company” under “(6)Notes to Consolidated Financial Statements” in “4. Consolidated Financial Statements and Primary Notes.”· PayPay Corporation
PayPay Corporation, which is engaged in smartphone payment services in Japan, recorded loss before income tax of ¥72,650 million, mainly reflecting its continued marketing promotions aimed at gaining users anddriving service usage, along with proactive measures to increase the number of stores where its services can

41SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2021

be used. PayPay Corporation’s payment services continued to see strong growth, with the number of payments
for the fiscal year reaching 2,039 million, a 2.5-fold increase year on year.
Results of PayPay Corporation included in “Other” in the reportable segments(Millions of yen)

Fiscal year ended March 31
2020
2021
Net sales
Loss before income taxes

9,159(82,217)

29,986(72,650)

ChangeChange %20,8279,567

227.4%-For a list of portfolio companies of SoftBank Latin America Fund, see the Data Sheets in “Materials” under “Earnings Results
Briefing” to be posted in a few days on the Company’s website at https://group.softbank/en/ir/presentations/.

42

SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2021

(2) Overview of Financial Position

1. The ¥4.5 trillion program and main impacts
 Sale and monetization of assets
i. Partial sale and monetization of T-Mobile shares*1- Recorded T-Mobile shares totaling ¥1,474.4 billion (as of the fiscal year-end) as investment securities
for those shares continued to be held by the Company after the sale.
- Borrowed $4.38 billion using T-Mobile shares (margin loan). Of this, $2.3 billion is included as proceeds from the ¥4.5 trillion program.
ii. Entry into several prepaid forward contracts using Alibaba shares- After concluding several prepaid forward contracts using Alibaba shares from April to August 2020,
amendments to some of the contracts were made in October and November 2020. Financial liabilities
totaling ¥3,085.7 billion (as of the fiscal year-end) were recorded relating to sale of shares by prepaid
forward contracts, including the contract concluded in the previous fiscal year.
iii. Partial sale of SoftBank Corp. shares- Changes in interests in subsidiaries of ¥932.4 billion (increase in capital surplus)
 Reduction of debt
SBG repaid senior loans of ¥300.0 billion by an early repayment and borrowings made under thecommitment line of ¥310.0 billion, and repurchased domestic unsecured corporate bonds with a total
face value of ¥167.6 billion, as well as foreign currency-denominated corporate bonds with a total
face value of $0.98 billion and €0.90 billion (¥224.9 billion in total).
 Share repurchase
The Company repurchased ¥2,226.2 billion of its own shares during the fiscal year (of this, the amountacquired based on the ¥4.5 trillion program was ¥1,742.2 billion).

2. Status of main investments and fund procurement related to the asset management subsidiaries*2- Investments in listed stocks: Investments from asset management subsidiaries of ¥658.2 billion
Securities pledged as collateral in asset management subsidiaries of¥1,427.3 billion- Derivative investments: Derivative financial assets in asset management subsidiaries of ¥188.1 billion
Derivative financial liabilities in asset management subsidiaries of ¥14.7 billion- Fund procurement: Borrowings of $6.0 billion using Alibaba shares as collateral (margin loan)
3. Carrying amount of investments from SVF1 and SVF2 accounted for using FVTPL of ¥13,646.8
billion, an increase of ¥6,754.5 billion from the previous fiscal year-end*3
The carrying amount of investments from SVF1 and SVF2 increased significantly; ¥5,721.6 billion for
SVF1 and ¥1,032.9 billion for SVF2 from the previous fiscal year-end, mainly reflecting the increase in thefair values of their portfolio companies.
4. Business integration of Z Holdings Corporation and LINE Corporation
Goodwill of ¥617.1 billion and identifiable intangible assets (customer relationships and trademarks) totaling¥407.0 billion were recorded related to LINE Corporation17 on the acquisition date.
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.” 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.

17 Includes its subsidiaries.

43

SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2021

(Millions of yen)March 31, 2020

March 31, 2021

ChangeChange %Total assets

37,257,292

45,750,453

8,493,161

22.8%

Total liabilities

29,884,375

33,794,860

3,910,485

13.1%

Total equity

7,372,917

11,955,593

4,582,676

62.2%(a) Assets(Millions of yen)March 31, 2020

March 31, 2021

ChangeCash and cash equivalents

3,369,015

4,662,725

1,293,710

A

Trade and other receivables

2,072,326

2,216,434

144,108

B

Investments from asset management subsidiaries-

658,227

658,227

C

Securities pledged as collateral inasset management subsidiaries-

1,427,286

1,427,286

D

Derivative financial assets in asset management
subsidiaries-

188,056

188,056

E

Other financial assets

313,487

1,055,222

741,735

F

Inventories

185,097

126,830(58,267)

Other current assets

460,970446,739(14,231)

Assets classified as held for sale

9,236,048

38,647(9,197,401) G

Total current assets

15,636,943

10,820,166(4,816,777)

Property, plant and equipment

1,264,516

1,668,578

404,062

Right-of-use assets

1,293,692

1,147,020(146,672)

Goodwill

3,998,167

4,684,419

686,252

I

Intangible assets

1,985,972

2,308,370

322,398

J

212,036

246,996

34,960Investments accounted for using the equity
method3,240,361

4,349,971

1,109,610

K

Investments from SVF1 and SVF2 accounted
for using FVTPL

6,892,232

13,646,774

6,754,542

LSVF1

6,681,671

12,403,286

5,721,615

SVF2

210,561

1,243,488

1,032,927

1,211,511

3,706,784

2,495,273

M

59,278

908,660

849,382

N

Other financial assets

1,100,694

1,919,262

818,568

O

Deferred tax assets

221,371

206,069(15,302)

Other non-current assets

140,519

137,384(3,135)

Total non-current assets

21,620,349

34,930,287

13,309,938

Total assets

37,257,292

45,750,453

8,493,161

Costs to obtain contracts

Investment securities
Derivative financial assets

44

HSoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2021

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

Main reasons for changes from the previous fiscal year-end

B Trade and other receivables· Receivables (call loans and loans of the banking business) of The JapanNet Bank, Limited (currently PayPay Bank Corporation) and trade receivables of YJ Card Corporation increased.
· Brightstar recorded trade receivables of ¥143,000 million at the previous
fiscal year-end, but it ceased to be a subsidiary of the Company in thefiscal year.

C Investments from asset management subsidiaries

The fair values of listed stocks held by SB Northstar at the fiscal year-end
were recorded.

D Securities pledged as collateralin asset management subsidiaries

Securities pledged as collateral by SB Northstar at the fiscal year-end
were presented separately.

E Derivative financial assets inasset management subsidiaries

The fair values of long call options of listed stocks held by SB Northstar
at the fiscal year-end were recorded.

F Other financial assets· In conjunction with the early termination in April 2021 of a portion of
the collar contract out of the prepaid forward contracts using Alibaba
shares, ¥361,355 million required for the termination procedure was recorded as restricted cash at the fiscal year-end. For details, see “12. Interest-bearing debt” under “(6) Notes to Consolidated Financial Statements” in “4. Consolidated Financial Statements and Primary Notes.” In
addition, derivative assets were reclassified from non-current assets forthe contracts with a contracted term of one year or less and ¥359,115
million was recorded.
· SB Northstar pledged collateral for transactions of investment acquisition using borrowings, short credit transactions, and total return swap
contracts. Margin deposits of ¥14,685 million and restricted cash of¥111,787 million were recorded at the fiscal year-end.

G Assets classified as held forsale· Sprint’s assets were separately presented in this category at the previous
fiscal year-end in conjunction with the classification of Sprint in the disposal group 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.
· Boston Dynamics, Inc.’s assets were separately presented in this category in conjunction with the classification of the company in the disposal group classified as held for sale in the fiscal year.

Cash and cash equivalents increased mainly due to the sale and monetization of assets under the ¥4.5 trillion program. For details, see “(Reference) Cash and cash equivalents by entity” and “(3) Overview of Cash
Flows.”

45

SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2021

Components
Non-current assets
H Property, plant and equipment

Main reasons for changes from the previous fiscal year-end

I Goodwill· In conjunction with the business integration of Z Holdings Corporationand LINE Corporation, the Company recognized goodwill related to LINE
Corporation17 in the amount of ¥617,077 million on the acquisition date.
For details, see “Acquisition of LINE Corporation and business integration of LINE Group and Z Holdings Corporation” under “7. Businesscombinations” in “(6) Notes to Consolidated Financial Statements” in “4.
Consolidated Financial Statements and Primary Notes.”· Goodwill of Arm increased ¥78,619 million due to a weaker yen against
the U.S. dollar.

J Intangible assets· In conjunction with the business integration of Z Holdings Corporationand LINE Corporation, the Company recognized the identifiable intangible assets (customer relationships and trademarks) related to LINE corporation17 in the amount totaling ¥406,964 million on the acquisition date.
For details, see “Acquisition of LINE Corporation and business integration of LINE Group and Z Holdings Corporation” under “7. Businesscombinations” in “(6) Notes to Consolidated Financial Statements” in “4.
Consolidated Financial Statements and Primary Notes.”· Intangible assets of Arm such as technology and customer relationships
decreased due to regular amortization.

K Investments accounted forusing the equity method

Income on equity investments related to Alibaba was recorded.

L Investments from SVF1 andSVF2 accounted for using
FVTPL· SVF1 recorded unrealized gain on valuation of investments (net) of¥5,478,148 million, reflecting increases in the fair value of investments
held at the fiscal year-end.
· SVF2 made new and follow-on investments totaling $4.7 billion, as well
as recorded unrealized gain on valuation of investments (net) of ¥490,255
million, reflecting increases in the fair value of investments held at the fiscal year-end.
For details of the status of investments at SVF1 and SVF2, see “(b) SVF1
and Other SBIA-Managed Funds Segment” under “b. Results by Segment”
in “(1) Overview of Results of Operations.”· SoftBank Corp. acquired telecommunications equipment including thatfor 5G.
· Subsidiaries operating a renewable energy power generation businessoverseas proceeded with construction of power stations.

46

SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2021

Components
M Investment securities

Main reasons for changes from the previous fiscal year-end· The fair value of T-Mobile shares continued to be held by the Company after the partial sale totaled ¥1,474,356 million, rising ¥219,608 million fromthe time of initial recognition on June 26, 2020 to the fiscal year-end. For
details, see “(1) Completion of the merger of Sprint and T-Mobile US, Inc.
and partial sale of T-Mobile shares, etc.” under “PROGRAM TO SELL OR
MONETIZE ¥4.5 TRILLION OF ASSETS (¥4.5 TRILLION PROGRAM)”in “(1) Overview of Results of Operations.”· The carrying amount of investments from SoftBank Latin America Fund increased ¥327,537 million due to an increase in the fair value of portfolio
companies, as well as new and follow-on investments made during the fiscal year (fiscal year-end balance: ¥441,008 million).
· Unrealized gains on valuation of investments in Social Finance, Inc. andLemonade, Inc. were recorded at ¥124,420 million and ¥72,994 million, respectively, reflecting the increase in their fair values.

N Derivative financial assets· Derivative financial assets of ¥460,709 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 rose
¥264,396 million from the time of the merger to the fiscal year-end.
· Derivative financial assets related to several prepaid forward contracts using
Alibaba shares increased ¥339,550 million. For details, see “12. Interestbearing debt” under “(6) Notes to Consolidated Financial Statements” in “4.
Consolidated Financial Statements and Primary Notes.”

O Other financial assets· For the funds that were raised through initial public offerings by SPACs,
which were sponsored by the Company’s subsidiaries (listed and not yet
merged with operating companies as of the fiscal year-end), the balance
managed in the Money Market Fund as of the fiscal year-end was included.
For details, see “5. Special purpose acquisition companies sponsored by theCompany” under (6) Notes to Consolidated Financial Statements” in “4.
Consolidated Financial Statements and Primary Notes.”· Housing loans increased at The Japan Net Bank, Limited (currently PayPay
Bank Corporation).
· Related to unsecured notes of WeWork purchased by the WeWork Investment Subsidiary, $1.17 billion was recorded as long-term loans. For details,
see “Investments and loans to WeWork from the WeWork Investment Subsidiary” under “(a) Investment Business of Holding Companies Segment” in“b. Results by Segment” in “(1) Overview of Results of Operations.”47

SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2021

(Reference) Cash and cash equivalents by entity(Millions of yen)

SoftBank Group Corp. / Wholly owned
subsidiaries conducting fund procurement, etc.*1/ SB Northstar
SoftBank Group Corp.
Wholly owned subsidiaries conducting fundprocurement*1
SB Northstar
SVF1 and Other SBIA-Managed Funds segment
SVF1
SVF2
SBIA
SoftBank segment
SoftBank Corp.
Z Holdings Corporation*2
Others*3
OthersTotal

March 31, 2020

March 31, 2021

Change1,461,291
1,455,385

2,202,730
1,948,177

741,439492,792

5,906-

33,272
221,281

27,366221,281

186,028
1,193
38,517

67,58063,47025,895(118,448)
62,277(12,622)

148,127
242,977
752,704
538,178

302,539
420,941
861,412718,158

154,412
177,964
108,708
179,980

3,369,015

4,662,725

1,293,710

Notes:
1. Includes 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.
2. Includes Yahoo Japan Corporation and LINE Corporation.
3. Includes The Japan Net Bank, Limited (currently PayPay Bank Corporation) and its balance of cash and cash equivalents, whichwas ¥306,599 million at the fiscal year-end.

48

SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2021(b) Liabilities(Millions of yen)March 31, 2020

March 31, 2021

Change3,845,153

7,735,239

3,890,086

Lease liabilities

378,383

307,447(70,936)

Deposits for banking business

873,087

1,109,240

236,153

Third-party interests in SVF1

24,691-(24,691)

1,585,326

1,970,275

384,949-

14,673

14,673

9,267

322,213

312,946 A

Other financial liabilities

248,01051,285(196,725)

Income taxes payables

164,298

391,930

227,632 B

Provisions

11,44824,93913,491Other current liabilities

596,499

952,443355,944 C

Liabilities directly relating to assets
classified as held for sale

6,454,971

11,271(6,443,700) D

Total current liabilities

14,191,133

12,890,955(1,300,178)

Interest-bearing debt

9,286,729

10,777,736

1,491,007

761,943

727,554(34,389)

Third-party interests in SVF1

4,559,728

6,601,791

2,042,063

Derivative financial liabilities

128,075

32,692(95,383)

Other financial liabilities

77,207415,407338,200 E

Provisions

88,791

110,586

21,795

Deferred tax liabilities

711,216

2,030,651

1,319,435 F

Other non-current liabilities

79,553

207,488

127,935

Total non-current liabilities

15,693,242

20,903,905

5,210,663

Total liabilities

29,884,375

33,794,860

3,910,485

Interest-bearing debt

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

Lease liabilities

49SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2021

Reasons for changes by primary component
Components
Current liabilities
A Derivative financial liabilities

Main reasons for changes from the previous fiscal year-end

B Income taxes payables

The amount equivalent to income taxes payables was recorded primarily
for a gain on the partial sale of SoftBank Corp. shares at SBGJ as a selling shareholder.

C Other current liabilities· ¥245,053 million was recorded as the expected payment amount ofwithholding income tax related to dividends paid from SBGJ to SBG.
· A deposit of $1.25 billion received for the sale of all shares of Arm wasrecorded. For details, see “ENTRY INTO AGREEMENT FOR SALE
OF ALL SHARES IN ARM” under “(1) Overview of Results of Operations.”

D Liabilities directly relating toassets classified as held forsale· Sprint’s liabilities were separately presented in this category at the previous fiscal year-end in conjunction with the classification of Sprint in
the disposal group 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.
· Boston Dynamics, Inc.’s liabilities were separately presented in this category in conjunction with the classification of the company in the disposal group classified as held for sale in the fiscal year.

Derivative financial liabilities of ¥204,821 million were recorded forstock purchase options received by Deutsche Telekom for T-Mobile
shares held by the Company.

Non-current liabilities
E Other financial liabilities

The equity interests of investors other than sponsors in SPACs (listed andnot yet merged with operating companies as of the fiscal year-end),
which were sponsored by the Company’s subsidiaries, were included. For
details, see “5. Special purpose acquisition companies sponsored by theCompany” under (6) Notes to Consolidated Financial Statements” in “4.
Consolidated Financial Statements and Primary Notes.”

F Deferred tax liabilities

Deferred tax liabilities increased at SBG.

50

SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2021

(Reference) Interest-bearing debt and lease liabilities (total of current liabilities and non-current liabilities)
March 31, 2020
SoftBank Group Corp. / Wholly owned
subsidiaries conducting fund procurement*1 /SB Northstar(Millions of yen)March 31, 2021
Change8,247,063

12,984,650

4,737,587

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

6,158,350
1,152,934
4,745,549
13,367
246,500(370,384)(235,306)(288,945)
13,367140,500

1,718,329
1,522,228

4,959,779
1,874,040

3,241,450
351,812

196,101-

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

2,889,638
1,866,521
1,866,521

581,543
581,543535
535

444,227444,227363
363(137,316)(137,316)
(172)
(172)

SoftBank Corp.
Borrowings
Corporate bonds
Lease liabilities
Commercial paper
Z Holdings Corporation*2
Borrowings
Corporate bonds
Lease liabilities
Other
Others3,828,904
2,856,027
40,000832,877
100,000
839,042
463,598354,327
21,117413,127

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

337,419
181,202
220,000(126,484)
62,701
191,938(21,192)
189,665
23,465
81,620

Other interest-bearing debt
Lease liabilities

259,801
102,193334,917
91,76975,116(10,424)

14,272,208

19,547,976

5,275,768

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

Total

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, and Delaware 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. The interest-bearing debt of Delaware Project 6 L.L.C. of $4.38 billion is exceptionally guaranteed by
SBG to a limit of $2.02 billion. As a precondition for SBG to fulfill its guarantee obligations, the lenders are obligated to firstrecover the amount to the maximum extent possible from Alibaba shares that have been pledged as collateral.
2. Includes Yahoo Japan Corporation and LINE Corporation.

51

SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2021

Reasons for changes from the previous fiscal year-end at core companies
SBG / Wholly owned subsidiaries conducting fund procurement / SB Northstar
SBG
・Borrowings
SBG repaid senior loans of ¥392.4 billion (total face value, including early repayment of ¥300.0 billion*) andborrowings of ¥310.0 billion* made under the commitment line in March 2021. On the other hand, SBG borrowed ¥540.0 billion during the fourth quarter to enhance cash on hand.
・Corporate bonds
SBG repurchased domestic unsecured corporate bonds with a total face value of ¥167.6 billion* and foreign
currency-denominated corporate bonds with a total face value of $0.98 billion and €0.90 billion (¥224.9 billion
in total)*, as well as redeemed domestic unsecured corporate bonds with a total of ¥150.0 billion at maturity. On
the other hand, SBG issued domestic hybrid notes with a total of ¥177.0 billion for the purpose of refinancing.
・Commercial paper
Commercial paper increased ¥140.5 billion.
*Conducted as part of the debt reduction under the ¥4.5 trillion program.
(Wholly owned subsidiaries conducting fund procurement)
Skywalk Finance GK
・As a borrowing using Alibaba shares (margin loan), Skywalk Finance GK repaid $9.44 billion in July 2020 andborrowed $8.13 billion in March 2021.
West Raptor Holdings, LLC, West Raptor Holdings 2, LLC, Skybridge LLC,
Skylark 2020 Holdings Limited, Scout 2020 Holdings Limited, and Tigress 2020 Holdings Limited
・Following the conclusion of 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, including
those concluded in the previous fiscal year, totaled ¥3,085,739 million at the fiscal year-end. This also includes
the impact of amendments made in the third quarter to some of the prepaid forward contracts (including thoseconcluded in the previous fiscal year), which resulted in the derecognition of ¥1,382,751 million of financial
liabilities for the amended contracts, and the recognition of ¥2,179,156 million of financial liabilities for newly
concluded contracts. For details, see “12. Interest-bearing debt” under “(6) Notes to Consolidated Financial
Statements” in “4. Consolidated Financial Statements and Primary Notes.”
Delaware Project 6 L.L.C.
・Borrowings of $4.38 billion were made using T-Mobile shares (margin loan).
SB Northstar
・Short-term borrowings for the purpose of acquiring listed stocks increased ¥1,203,925 million.
・Borrowings of $6.0 billion were made using Alibaba shares (margin loan).
SVF1 and Other SBIA-Managed Funds segment
・Borrowings under the Fund Level Facility in SVF1 decreased $3.08 billion following repayments. No borrowings were outstanding as of the fiscal year-end.
・Borrowings under the Portfolio Financing Facility in SVF1 decreased $1.03 billion following repayments.
・During the fourth quarter, SVF1 borrowed $2.80 billion. The loan is expected to be repaid from the proceeds tobe received upon the completion of the sale of Arm shares held by SVF1 to NVIDIA.

52

SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2021

SoftBank segment
SoftBank Corp.
・Borrowings increased mainly due to the financing through the sale and leaseback of telecommunications equipment.
・Domestic straight corporate bonds totaling ¥220.0 billion were issued.
Z Holdings Corporation
・Interest-bearing debt of ¥244,248 million was recognized at LINE Corporation17 on the acquisition date in conjunction with the business integration of Z Holdings Corporation and LINE Corporation. For details, see “Acquisition of LINE Corporation and business integration of LINE Group and Z Holdings Corporation” under “7.
Business combinations” in “(6) Notes to Consolidated Financial Statements” in “4. Consolidated Financial
Statements and Primary Notes.”・Z Holdings Corporation repaid short-term borrowings, while issuing domestic straight corporate bonds totaling¥200.0 billion.
(c) Equity(Millions of yen)March 31, 2020

March 31, 2021

ChangeCommon stock

238,772

238,772-

Capital surplus

1,490,325

2,618,504

1,128,179

496,876

496,876-

Retained earnings

3,945,820

8,810,422

4,864,602

Treasury stock(101,616)(2,290,077)(2,188,461) C

Accumulated other comprehensive income(362,259)

338,329

700,588

Accumulated other comprehensive income directly
relating to assets classified as held for sale205,695

267

Total equity attributable to owners of the parent

5,913,613

10,213,093

4,299,480

Non-controlling interests

1,459,304

1,742,500

283,196

Total equity

7,372,917

11,955,593

4,582,676

Other equity instruments

A
B
D(205,428) E
F

Reasons for changes by primary component
Components
A Capital surplus

Main reasons for changes from the previous fiscal year-end· Changes in interests in subsidiaries of ¥932,388 million were recorded inconjunction with the partial sale of SoftBank Corp. shares.
· Changes in interests in subsidiaries of ¥245,147 million were recorded due
to a decrease in the equity stake in the new company formed by the merger
following the business integration of Z Holdings Corporation and LINE
Corporation.

53

SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2021

Components
B Retained earnings

Main reasons for changes from the previous fiscal year-end
Net income attributable to owners of the parent of ¥4,987,962 million wasrecorded.

C Treasury stock· The Company repurchased 102,960 thousand of its own shares for ¥483,971
million in accordance with the March 13, 2020 Board resolution. In the previous fiscal year, the Company repurchased 4,720 thousand shares for¥16,028 million in accordance with the resolution.
· The Company repurchased 152,520 thousand of its own shares for¥1,000,000 million in accordance with the May 15, 2020 and June 25, 2020
Board resolutions.
· The Company repurchased 80,681 thousand of its own shares for ¥742,223
million in accordance with the July 30, 2020 Board resolution with a maximum total repurchase amount of ¥1 trillion.

D Accumulated other comprehensive income

Exchange differences from the translation of foreign operations, which arise
from translating overseas subsidiaries and associates into yen, increased¥651,960 million due to a weaker yen against the major currencies.

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

· Sprint’s accumulated other comprehensive income was separately presented
in this category at the previous fiscal year-end in conjunction with the classification of the company in 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.
· Boston Dynamics, Inc.’s accumulated other comprehensive income wasseparately presented in this category in conjunction with the classificationof the company in the disposal group classified as held for sale in the fiscal
year.

F Non-controlling interests· Non-controlling interests increased ¥434,371 million due to the recognitionof ¥264,257 million of non-controlling interests related to LINE Corporation17 on the acquisition date and a decrease in the equity stake in the newcompany formed by the merger following the business integration of Z
Holdings Corporation and LINE Corporation.
· Non-controlling interests increased ¥134,413 million in conjunction withthe partial sale of SoftBank Corp. shares.
· 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 theCompany following the completion of the merger of Sprint and T-Mobile
US, Inc. at the beginning of the fiscal year.
· Non-controlling interests decreased ¥152,864 million primarily due to therecording net loss at SB Northstar.

54

SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2021

(3) Overview of Cash Flows

1. Completion of the ¥4.5 trillion program Sold or monetized assets totaling ¥5.6 trillion in the six months from April to September 2020 throughthe partial sales or monetization of shares of T-Mobile, Alibaba, and SoftBank Corp.
 Repurchased a cumulative total of ¥1,742.2 billion of its own shares as of March 31, 2021 (a cumulative
total of ¥2,226.2 billion for the fiscal year, combined with share repurchases resolved before the ¥4.5
trillion program). In reducing debts, the Company reduced debt by ¥1 trillion by the fiscal year-end
through the repurchase of domestic corporate bonds and foreign currency-denominated corporate bonds,
and repayment of senior loans and borrowings made under the commitment line.
2. Investment activities by investment funds
 Payments for acquisition of investments by SVF1 and SVF2 totaled ¥856.6 billion; proceeds from salesof investments by SVF1 totaled ¥856.4 billion.
 Payments for acquisition of investments by SoftBank Latin America Fund totaled ¥98.9 billion.
3. 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 asset management subsidiary SB
Northstar starting from the second quarter.
 Investments made by SBG are recorded in cash flows from investing activities: Payments for acquisitionof investments of ¥2,705.4 billion and proceeds from sales/redemption of investments of ¥675.7 billion.
 Investments made by SB Northstar are mainly recorded in cash flows from operating activities as thecompany’s primary business is to frequently trade marketable securities.
(Millions of yen)

Cash flows from operating activities
Cash flows from investing activities
Cash flows from financing activities

Fiscal year ended March 31
2020
2021

Change557,250(1,468,599)
2,194,077(560,629)
2,818,322(726,786)

1,117,879(4,286,921)
2,920,863

Note: Cash flows from discontinued operations are included. For details of cash flows from discontinued operations, see “3. Discontinued operations” under “(6) Notes to Consolidated Financial Statements” in “4. Consolidated Financial Statements andPrimary Notes.”(a) Cash Flows from Operating Activities

Cash flows from operating activities decreased ¥560,629 million year on year. This was mainly due to the exclusion of Sprint from the scope of consolidation at the beginning of the fiscal year, which had generated cash inflowsof ¥641,013 million in the previous fiscal year, and asset management subsidiary SB Northstar, which started
operations in the fiscal year, recording cash outflows of ¥509,249 million (before elimination of intercompany
transactions) mainly associated with realized loss on investments in derivatives. These were partially offset by a
year-on-year decrease in income tax payments of ¥613,371 million.
The decrease in income taxes paid was mainly due to income taxes of ¥321,290 million being paid by SBGJ in
the previous fiscal year on a gain on the sale of SoftBank Corp. shares and others that arose in the fiscal year ended
March 2019, as well as a withholding income tax of ¥422,648 million being paid on dividends from SBGJ to SBG.
The latter withholding income tax was refunded in July 2019.

55

SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2021

(b) Cash Flows from Investing Activities

Primary components
Components
Payments for acquisition of
investments¥(4,186,663) million

Primary details· SBG acquired highly liquid listed stocks for ¥2,705,425 million withthe aim of diversifying its assets and managing surplus funds prior to
the asset management subsidiary SB Northstar starting operations inthe second quarter.
· SoftBank Latin America Fund made new and follow-on investments
totaling ¥98,886 million.
· As part of the business integration between Z Holdings Corporationand LINE Corporation, SoftBank Corp. paid a net amount of ¥175,313
million for the acquisition of LINE Corporation shares. However, thetransactions between SoftBank Corp. and LINE Corporation before
making LINE Corporation a subsidiary are presented in gross amounts
on the Consolidated Statement of Cash Flows as “payments for acquisition of investments” and “proceeds from sales/redemption of investments.” “payments for acquisition of investments” includes ¥269,134
million paid by SoftBank Corp. for the acquisition of LINE Corporation shares through a joint tender offer and a squeeze-out procedure using a reverse stock split. It also includes ¥739,628 million paid by SoftBank Corp. to subscribe to the corporate bonds issued by LINE Corporation for the purpose of conducting the tender offer for shares of Z
Holdings Corporation. (the “LINE Corporate Bonds”).

Proceeds from sales/redemptionof investments¥3,845,787 million· SBG received proceeds of ¥675,688 million from the sale of a portionof the abovementioned highly liquid listed stocks.
· SBG received proceeds of ¥2,099,746 million from the partial sale ofits T-Mobile shares held through a subsidiary.
· As part of the abovementioned transactions conducted between SoftBank Corp. and LINE Corporation before making LINE Corporation a
subsidiary, “proceeds from sales/redemption of investments” includes
proceeds of ¥93,821 million from the sale of LINE Corporation sharesby SoftBank Corp. primarily through a squeeze-out procedure using areverse stock split of LINE Corporation shares. It also includes proceeds of ¥739,628 million from the sale or redemption of LINE Corporate Bonds that SoftBank Corp. subscribed to.

Payments for acquisition of investments by SVF1 and SVF2¥(856,608) million· SVF1 made follow-on investments totaling $4.1 billion in existing
portfolio companies and their joint ventures.
· SVF2 made new and follow-on investments totaling $4.0 billion.

Proceeds from sales of investments by SVF1
¥856,408 million

SVF1 sold investments such as OSIsoft, Uber (partially), and Guardant
Health (partially).

56

SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2021

Components
Purchase of property, plant andequipment, and intangible assets¥(646,888) million

Primary details· SoftBank Corp. purchased telecommunications equipment includingfor 5G.
· Subsidiaries operating a renewable energy power generation businessoverseas proceeded with construction of power stations.

Payments into restricted cash¥(351,343) million

Prior to the early termination in April 2021 of a portion of the collar
contract out of the prepaid forward contracts using Alibaba shares, $3.3
billion required for the termination procedure was recorded as restricted
cash. The applicable contracts were settled with a payment of $2.9 billion and terminated in April 2021. For details, see “12. Interest-bearingdebt” under “(6) Notes to Consolidated Financial Statements” in “4.
Consolidated Financial Statements and Primary Notes.”

Payments into trust accounts
in SPACs¥(350,990) million

A total of $3.3 billion of funds raised through initial public offerings by
SPACs, which were sponsored by the Company’s subsidiaries, was held
in a trust account. In accordance with the terms of investments, the proceeds received are held in a trust account until the completion of themerger and are invested only in certain financial assets that are highly
liquid. For details, see “5. Special purpose acquisition companies sponsored by the Company” under (6) Notes to Consolidated Financial Statements” in “4. Consolidated Financial Statements and Primary Notes.”

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.

57

SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2021

(c) Cash Flows from Financing Activities

Primary components
Components
Proceeds in short-term interestbearing debt, net¥1,575,327 million*1

Primary details· Short-term borrowings for the purpose of acquiring listed stocks at SB
Northstar increased ¥1,144,502 million (net).
· SoftBank Corp.’s short-term borrowings increased ¥255,591 million(net).

Proceeds from interest-bearing debt
¥7,965,114 million
Proceeds from borrowings¥5,707,162 million*2· SBG made short-term borrowings of ¥1,040,100 million.
· Skywalk Finance GK borrowed $8.13 billion using Alibaba shares(margin loan).
· Delaware Project 6 L.L.C. borrowed $4.38 billion using T-Mobile
shares (margin loan).
· SB Northstar borrowed $6.0 billion using Alibaba shares (marginloan).
· SVF1 borrowed $2.80 billion and borrowed $1.90 billion through theFund Level Facility, which is a form of loan that allows borrowing up
to a maximum amount of $1.48 billion. In the fiscal year, SVF1 madeseveral borrowings and repayments under the facility (see “Repaymentof borrowings” below).
· SoftBank Corp. made short-term borrowings of ¥648,700 million and borrowings of ¥756,661 million. Z Holdings Corporation made short-termborrowings of ¥231,800 million and borrowings of ¥150,000 million.

Proceeds from issuance ofcorporate bonds¥597,000 million· SBG newly issued domestic hybrid notes of ¥177.0 billion.
· SoftBank Corp. and Z Holdings Corporation issued domestic straight
corporate bonds totaling ¥220.0 billion and ¥200.0 billion, respectively.

Proceeds from procurement
by prepaid forward contracts 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¥(5,790,901) million
Repayment of borrowings¥(5,223,271) million*2· SBG repaid short-term borrowings of ¥863,250 million and seniorloans of ¥392,380 million (including early repayment of ¥300,000 million).
· Skywalk Finance GK repaid $9.44 billion in borrowings made using
Alibaba shares (margin loan).
· SVF1 repaid $4.98 billion of borrowings under the Fund Level Facility
and $1.03 billion of borrowings under the Portfolio Financing Facility.
· SoftBank Corp. repaid short-term borrowings of ¥592,000 million andborrowings of ¥832,676 million. Z Holdings Corporation repaid shortterm borrowings of ¥605,270 million.

58

SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2021

Components
Redemption of corporatebonds¥(567,630) million

Primary details
SBG redeemed domestic unsecured corporate bonds with a total facevalue of ¥150.0 billion at maturity and repurchased domestic unsecured
corporate bonds with a total face value of ¥167.6 billion, and foreign
currency-denominated corporate bonds with a total face value of $0.98
billion and €0.90 billion (¥224.9 billion in total).

Contributions into SVF1 fromthird-party investors¥979,266 million

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

Distribution/repayment from
SVF1 to third-party investors¥(1,362,066) million

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

Proceeds from non-controlling interests subject to possible redemption¥345,466 million

SPACs controlled by the Company’s subsidiaries as sponsor raised a total of $3.25 billion from third-party investors through initial public offerings. For details, see “5. Special purpose acquisition companies
sponsored by the Company” under (6) Notes to Consolidated Financial
Statements” in “4. Consolidated Financial Statements and Primary
Notes.”

Proceeds from the partial sales ofshares of subsidiaries to noncontrolling interests¥1,552,957 million

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

Purchase of treasury stock¥(2,226,229) million

SBG repurchased its own shares in accordance with resolutions of theBoard of Directors on March 13, May 15, June 25, and July 30, 2020.

Notes:
1. “Proceeds in short-term interest-bearing debt, net” presents cash flows from financing activities that meet the requirement of“Reporting cash flows on a net basis” under IFRSs.
2. “Proceeds from borrowings” and “repayment of borrowings” include proceeds of ¥2,378,859 million and outlays of ¥2,823,336
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.
2. Basic Approach to the Selection of Accounting Standards
The Company adopts International Financial Reporting Standards (IFRSs).

59

SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2021

3. Notes to Summary Information(1) Significant Changes in Scope of Consolidation for the Fiscal Year Ended March 31, 2021
(Specified subsidiary (two entities) newly included in the scope of consolidation)
On December 23, 2019, Z Holdings Corporation and A Holdings Corporation (formerly known as LINE
Corporation), along with SoftBank Corp. and NAVER Corporation, concluded a four-way definitive
agreement regarding a business integration (the “Business Integration”).
Through a series of transactions under the Business Integration, LINE Corporation (formerly known as
LINE Split Preparation Corporation) and LINE Financial Asia Corporation Limited became specified
subsidiaries of the Company on February 28, 2021. The details are described in “Note 7. Businesscombinations Acquisition of LINE Corporation and business integration of LINE Group and Z Holdings
Corporation” in “(6) Notes to Consolidated Financial Statements” under “4. Consolidated Financial
Statements and Primary Notes.”
Note:* On February 28, 2021, LINE Corporation and LINE Split Preparation Corporation were renamed A Holdings Corporationand LINE Corporation, respectively.

(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-stocktransaction (“the Transaction”) was completed. Upon completion of the Transaction, Starburst I, Inc. andSprint which were specified subsidiaries of the Company, and Sprint Communications, Inc. which was a
subsidiary of Sprint, were no longer subsidiaries of the Company. The details are described in “Note 3.
Discontinued operations (1) Sprint” in “(6) Notes to Consolidated Financial Statements” under “4.
Consolidated Financial Statements and Primary Notes.”(2) Changes in Accounting Estimates(Impairment of assets)
On September 17, 2020, the Company has entered into a definitive agreement with Brightstar CapitalPartners, in order to sell all of its shares in Brightstar to a newly formed subsidiary of Brightstar CapitalPartners. An impairment loss on goodwill was recorded as the fair value less costs to sell (expected saleprice) of Brightstar is lower than the carrying amount. The details are described in “Note 3. Discontinued
operations (2) Brightstar” in “(6) Notes to Consolidated Financial Statements” under “4. Consolidated
Financial Statements and Primary Notes.”

60

SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2021

(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, SBGJ utilized a loss carry forward whose deferred tax asset was notrecognized in SBGJ for a taxable income generated from the sales of SoftBank Corp. shares and a credit ofincome taxes (profit) was recorded. The details are described in “Note 11. Income taxes” in “(6) Notes toConsolidated Financial Statements” under “4. Consolidated Financial Statements and Primary Notes.”(Allowance for loan commitment losses)
As of March 31, 2021, 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 aredescribed “Notes 1” in “Note 20. Other loss” in “(6) Notes to Consolidated Financial Statements” under “4.
Consolidated Financial Statements and Primary Notes.”(Allowance for financial guarantee contract losses)
As of March 31, 2021, 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 2” in “Note 20. Other loss” in “(6) Notes to Consolidated Financial
Statements” under “4. Consolidated Financial Statements and Primary Notes.”(Impairment loss on equity method investments)
Impairment loss on equity method investments and reversal of impairment losses on equity method
investments were recorded for the equity method investment in WeWork, an equity method associate of theCompany. The details are described “Notes 5” in “Note 20. Other loss” in “(6) Notes to Consolidated
Financial Statements” under “4. Consolidated Financial Statements and Primary Notes.”

61

SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2021

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

Definition

SoftBank Group Corp.

SoftBank Group Corp. (stand-alone basis)

The Company

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

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

WeWork Inc.

62

SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2021

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:
Consolidated Statement of Financial Position
Previous

Current

Investments from SoftBank Vision Fund and other

Investments from SVF1 and SVF2 accounted for using

SBIA-managed funds accounted for using FVTPL

FVTPL

Third-party interests in SoftBank Vision Fund andThird-party interests in SVF1

other SBIA-managed funds
Consolidated Statement of Income
Previous

Current

Gain (loss) on investments at SoftBank Vision Fund

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

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
Consolidated Statement of Cash Flows
Previous

Current(Gain) loss on investments at SoftBank Vision Fund

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

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
Payments for acquisition of investments by SoftBank

Payments for acquisition of investments by SVF1 andVision Fund and other SBIA-managed funds

SVF2

Proceeds from sales of investments by SoftBank

Proceeds from sales of investments by SVF1

Vision Fund and other SBIA-managed funds
Contributions into SoftBank Vision Fund and other

Contributions into SVF1 from third-party investors

SBIA-managed funds from third-party investors
Distribution/repayment from SoftBank Vision FundDistribution/repayment from SVF1 to third-party

and other SBIA-managed funds to third-party investors

investors

Segment information
Previous

Current

SoftBank Vision Fund and Other SBIA-Managed

SVF1 and Other SBIA-Managed Funds segment

Funds segment

63SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2021

(1) 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
Securities pledged as collateral in 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

64

As of
March 31, 2021

3,369,015
2,072,326-

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

1,427,286-

188,056

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

1,055,222
126,830
446,739
10,781,519
38,647
10,820,166

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

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

6,892,232

13,646,774

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

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

SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2021

(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 asheld 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

65

As of
March 31, 2021

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

7,735,239
307,447
1,109,240
1,970,275-

14,673

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

322,21351,285391,930
24,939952,443
12,879,684

6,454,971

11,271

14,191,133

12,890,955

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

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

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

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

205,695

267

5,913,613

10,213,093

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

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

SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2021

(2) Consolidated Statement of Income and Consolidated Statement of Comprehensive Income
Consolidated Statement of Income(Millions of yen)

Fiscal year ended
March 31, 2020
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, SVF2, and others
Gain (loss) 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 loss
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

66

Fiscal year ended
March 31, 2021

5,238,938(2,584,273)
2,654,665

5,628,167(2,753,238)
2,874,929

484,308

945,944(1,844,867)(49,594)(1,410,153)(2,060,080)(293,897)
624,015

6,292,024
291,038
7,529,006(2,271,497)(307,250)
616,43215(480,251)

540,930(5,457)50,038(792,655)(742,617)(2,246,417)(44,496)
5,670,456(1,303,168)
4,367,288(58,143)(800,760)

710,948
5,078,236(961,576)(912,149)(49,427)
160,816
169,532(8,716)(800,760)

4,987,962
4,276,729
711,233
90,27490,559(285)
5,078,236(454.67)(23.83)(478.50)

2,243.80
375.81
2,619.61(461.50)(23.83)(485.33)

2,062.55
374.742,437.29

SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2021

Notes:
1. Operating results related to Brightstar are presented as discontinued operations, separately from continuing operations for the fiscal
year ended March 31, 2021. In order to reflect these changes in presentation, similar reclassifications have been made for the fiscal
year ended March 31, 2020. The details are described in “Note 3. Discontinued operations.”
2. Presentation method for the 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.

67

SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2021

Consolidated Statement of Comprehensive Income(Millions of yen)

Net income
Other comprehensive income, net of tax
Items that will not be reclassified to profit or loss
Remeasurements of defined benefit plan
Equity financial assets at FVTOCI
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

Fiscal year ended
March 31, 2020
(800,760)

Fiscal year ended
March 31, 2021
5,078,236(21,281)(6,245)(40)
29,495(27,526)

29,455(1,502)56,157554
33,775(521,620)

502,085

4,912(65,861)(462,053)

470,553(489,579)(1,290,339)

500,008
5,578,244(1,149,083)

5,070,088(141,256)

508,156(1,425,587)

5,482,739(1,310,448)

4,974,298(115,139)

508,441

135,248(1,290,339)

95,505
5,578,244

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

68SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2021

(3) Consolidated Statement of Changes in Equity
For the fiscal year ended March 31, 2020
(Millions of yen)

Equity attributable to owners of the parent

As of April 1, 2019

Commonstock

Capitalsurplus

Other equity
instruments

Retainedearnings

Treasurystock

Accumulated
othercomprehensive
income238,772

1,467,762

496,876

5,571,285(443,482)

290,268

7,621,481---

13,997--

13,997

238,772

1,467,762

496,876

5,585,282(443,482)

290,268

7,635,478---(961,576)--(961,576)

-

-

-

-

-

(464,011)(464,011)---(961,576)-(464,011) (1,425,587)

-

-

-

(68,752)--(68,752)---(31,071)--(31,071)---(17,179)-

17,179

-

-

(739)

-

(2,748)(216,270)-(219,757)

Subtotal

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

-

-

-

(558,136)

558,136--

Changes from businesscombination

-

-

-

-

-

-

-

Changes in interestsin subsidiaries-

42,358----42,358Changes in associates’interests in their subsidiaries-(24,843)

-

-

-

-

(24,843)

Changes in interests in associates’
capital surplus

-

3,583

-

-

-

-

3,583

Share-based payment transactions
Transfer of accumulated other

-

2,204

-

-

-

-

2,204

comprehensive income held
for sale

-

-

-

-

-

(205,695)(205,695)

Other

-

-

-

-

-

-

-

Total transactions with owners
and other transactions-

22,563-(677,886)

341,866(188,516)(501,973)

238,772

1,490,325

496,876

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

5,707,918

As of March 31, 202069

SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2021
(Millions of yen)

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

Total

Noncontrollinginterests

As of April 1, 2019-

7,621,481

1,387,723

9,009,204

Effect of retrospective
adjustments due to adoption of-

13,997(1,357)

12,640-7,635,478

1,386,366

9,021,844-(961,576)

160,816(800,760)-(464,011)(25,568)(489,579)-(1,425,587)

135,248(1,290,339)-(68,752)(157,894)(226,646)-(31,071)-(31,071)

-

-

-

-

-

(219,757)-(219,757)

-

-

-

-

-

-

191,325

191,325-

42,358(94,359)(52,001)-(24,843)-(24,843)

-

3,583

-

3,583

-

2,204

(750)

1,454

205,695

-

-

-

-

-

(632)

(632)

205,695(296,278)(62,310)(358,588)

205,695

5,913,613

1,459,304

7,372,917

new standards*
As of April 1, 2019
(after adjustments)
Comprehensive income
Net income
Other comprehensive
incomeTotal comprehensive income

Total equity

Transactions with owners andother transactions
Cash dividends
Distribution to owners of other
equity instruments
Transfer of accumulated othercomprehensive income toretained earnings
Purchase and disposal of treasury
stock
Retirement of treasury stock
Changes from businesscombination
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 March 31, 2020

Note:
* As a result of the adoption of IFRS 16 “Leases,” cumulative effects of retrospective adjustments are recognized as adjustments to the
opening balance of retained earnings.

70

SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2021

For the fiscal year ended March 31, 2021
(Millions of yen)

Equity attributable to owners of the parent

As of April 1, 2020
Comprehensive income
Net income
Other comprehensive
incomeTotal comprehensive income

Commonstock

Capitalsurplus

Other equity
instruments

Retainedearnings

Treasurystock

Accumulated
othercomprehensive
income238,772

1,490,325

496,876

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

5,707,918---

4,987,962--

4,987,962

-

-

-

-

-

700,472

700,472---

4,987,962-

700,472

5,688,434---(86,841)--(86,841)---(30,139)--(30,139)

-

-

-

(383)

-

383

-

-

-

-

(2,452) (2,188,461)-(2,190,913)

-

-

-

-

-

-

-

Subtotal

Transactions with owners andother transactions
Cash dividends
Distribution to owners of other
equity instruments
Transfer of accumulated othercomprehensive income toretained earnings
Purchase and disposal of treasury
stock
Changes from businesscombination
Changes from loss of control

-

-

-

-

-

-

-

Changes in interestsin subsidiaries-

1,126,469

-

-

-

-

1,126,469

Changes in associates’interests in their subsidiaries

-

4,794

-

-

-

-

4,794

Share-based payment transactions
Transfer of accumulated other-(3,278)

-

-

-

-

(3,278)comprehensive income held
for sale

-

-

-

-

-

(267)

(267)

-

194

-

(3,545)--(3,351)-

1,128,179-(123,360) (2,188,461)

116(1,183,526)

238,7722,618,504

496,876

338,329

10,212,826

Other
Total transactions with owners
and other transactions
As of March 31, 2021

71

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

SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2021
(Millions of yen)

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

Total

Noncontrollinginterests

205,695

5,913,613

1,459,304

7,372,917-

4,987,962

90,274

5,078,236(205,695)

494,777

5,231

500,008(205,695)

5,482,739

95,505

5,578,244-(86,841)(219,698)(306,539)-(30,139)-(30,139)

-

-

-

-

-

(2,190,913)-(2,190,913)--

265,219

265,219--(424,226)(424,226)

Changes in interestsin subsidiaries-

1,126,469

559,955

1,686,424

Changes in associates’interests in their subsidiaries

-

4,794

-

4,794

Share-based payment transactions
Transfer of accumulated other-(3,278)

3,777

499

comprehensive income held
for sale

267

-

-

-

Other
Total transactions with owners-(3,351)

2,664

(687)

267

(1,183,259)

187,691(995,568)

267

10,213,093

1,742,500

11,955,593

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 businesscombination
Changes from loss of control

and other transactions
As of March 31, 2021

72

Total equity

SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2021

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

Fiscal year ended
March 31, 2020
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, SVF2, and others
Finance cost
Income on equity method investments
Derivative (gain) loss (excluding (gain) loss on
investments)
Change in third-party interests in SVF1
Loss (gain) on other investments and other loss
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 trade and other receivables(Increase) decrease in inventories
Increase in trade and other payables
Gain relating to loss of control over discontinued
operations
Other
SubtotalInterest and dividends received
Interest paid
Income taxes paid
Income taxes refunded
Net cash provided by operating activities

73

Fiscal year ended
March 31, 2021

(742,617)(58,143)(800,760)
2,051,472

4,367,288
710,948
5,078,236
851,316(484,308)(1,441,509)

1,844,867
613,483(622,113)(6,292,024)
309,294(616,177)(4,337)

480,184(540,930)
50,650688,704

2,246,417(231,152)
1,305,251-

1,631,430-(168,405)-(107,601)-(1,351,311)(242,697)(374,722)
88,728(288,416)
6,276
199,064-(722,004)

155,280
2,423,317
49,688(597,772)(1,201,986)
444,632
1,117,879

230,306
1,119,175
27,639(265,104)(588,615)
264,155
557,250

SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2021

(Millions of yen)

Fiscal year ended
March 31, 2020
Cash flows from investing activities
Payments for acquisition of investments
Proceeds from sales/redemption of investments
Payments for acquisition of investments by SVF1 and
SVF2Proceeds from sales of investments by SVF1
Payments for acquisition of investments by asset
management subsidiaries
Payments for acquisition of control over subsidiaries
Proceeds from acquisition of control over subsidiaries
Payments for acquisition of marketable securities for
short-term trading
Proceeds from sales/redemption of marketablesecurities for short-term trading
Purchase of property, plant and equipment, andintangible assets
Payments for loan receivables
Collection of loan receivables
Payments into restricted cash
Payments into trust accounts in SPACs
Other
Net cash used in investing activities
Cash flows from financing activities
Proceeds in short-term interest-bearing debt, net
Proceeds from interest-bearing debt
Repayment of interest-bearing debt
Repayment of lease liabilities
Contributions into SVF1 from third-party investors
Distribution/repayment from SVF1 to third-party
investors
Proceeds from non-controlling interests subject topossible redemption
Proceeds from the partial sales of shares of subsidiaries
to non-controlling interests
Purchase of shares of subsidiaries from non-controllinginterests
Distribution to owners of other equity instruments
Purchase of treasury stock
Cash dividends paid
Cash dividends paid to non-controlling interests
Other
Net cash provided by financing activities
Effect of exchange rate changes on cash and cash
equivalents
Decrease in cash and cash equivalents relating totransfer of assets classified as held for sale
(Decrease) increase in cash and cash equivalents
Cash and cash equivalents at the beginning of the year
Cash and cash equivalents at the end of the year

74

Fiscal year ended
March 31, 2021

(1,098,640)
283,892(4,186,663)
3,845,787(1,816,291)(856,608)

129,832

856,408-(95,616)(388,320)
61(13,824)
312,791(245,070)(107,890)

86,449257,255(1,232,551)(646,888)(210,379)
95,134(15,777)
124,739(4,286,921)(293,669)
42,970(351,343)(350,990)
119,681(1,468,599)

133,173
8,601,926(5,646,727)(695,370)
1,843,660

1,575,327
7,965,114(5,790,901)(402,257)
979,266(771,282)(1,362,066)-

345,466435

1,552,957(82,932)(101,222)(31,071)(231,980)(68,659)(156,999)
26,6892,920,863(30,139)(2,226,229)(86,760)(220,313)(4,166)2,194,077(342)

12,230(240,982)(1,248)(489,503)
3,858,518
3,369,015

1,293,710
3,369,015
4,662,725

SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2021

Notes:
1. Cash flows from continuing operations and cash flows from discontinued operations are included. The details are described in“Note 3. Discontinued operations.”
2. Presentation method for the 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.”75

SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2021

(5) Significant Doubt about Going Concern Assumption
There are no applicable items.
(6) Notes to Consolidated Financial Statements
1. Changes in presentation(Consolidated statement of income)a. Operating results related to Brightstar are presented as discontinued operations, separately from continuing
operations for the fiscal year ended March 31, 2021. In order to reflect these changes in presentation, similar
reclassifications have been made for the fiscal year ended March 31, 2020. The details are described in “Note3. 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
through investment 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 thethree-month period ended June 30, 2020. “Operating income,” as previously presented, did not include gain
and loss on investments other than those included in “Operating income from SoftBank Vision Fund and other
SBIA-managed funds.” Therefore, the Company 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 to present “Operating income” in the consolidated statement ofincome 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
from investments, derivative gain and loss relating to financial assets at FVTPL, and realized gain and loss
from sales of investments accounted for using the equity method.

76

SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2021

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, SVF2,
and others” and “Gain (loss) on other investments.” Investment Business of Holding Companies segment isincluded in the reportable segments from the three-month period ended June 30, 2020. The details aredescribed in “Note 4. Segment information.” Derivative gain and loss other than those mentioned above arepresented as “Derivative gain (loss) (excluding gain (loss) on investments).” In addition, income or loss onequity method investments arising from recognizing the Company’s share in profit or loss of the investees ispresented as “Income on equity method investments” as previously presented.
In order to reflect these changes in presentation, similar reclassifications have been made to the consolidated
statement of income for the fiscal year ended March 31, 2020. The details of the reclassifications are as
follows.

77

SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2021

For the fiscal year ended March 31, 2020
(Millions of yen)
Before changes in presentation

Reclassification(after reclassification of discontinued operations)amounts

Continuing operations
Net sales
Cost of sales
Gross profit

5,238,938(2,584,273)-

2,654,665

After changes in presentation

Continuing operations
5,238,938 Net sales(2,584,273)
Cost of sales
2,654,665 Gross profit
Gain (loss) on investments
Gain (loss) on investments at
484,308
Investment Business of Holding
Companies
Gain (loss) on investments at SVF1,(1,844,867)
SVF2, and others-

484,308-(1,844,867)-(49,594)(1,410,153)

Selling, general and administrative
expensesGain relating to loss of control oversubsidiaries1(1,973,602)(86,478)(2,060,080)

11,879(11,879)-

Other operating income (loss)2
Operating income (excluding operating
income from SoftBank Vision Fundand other SBIA-managed funds)
Operating income from SoftBank
Vision Fund and other(121,051)

121,051-

571,891(571,891)-(1,931,345)

1,931,345-(1,359,454)(293,897)

1,359,454-(293,897)

638,457(14,442)624,015

339,842(339,842)-

Foreign exchange gain (loss)5(9,271)

9,271-

Derivative gain (loss)6(70,982)

70,99715

1,218,527(1,218,527)-(668,971)

668,971-

540,930-

540,930(285,143)

285,143--(49,594)

Gain (loss) on other investments
Totalgain (loss) on investments(1,410,153)
Selling, general and administrative
expenses

SBIA-managed funds3
Operating income
Finance cost
Income (loss) on equity method
investments
Dilution gain from changes
in equity interest4

Gain relating to settlement ofvariable prepaid forward contracts
using Alibaba shares7
Gain (loss) from financial
instruments at FVTPL8
Change in third-party interests in
SoftBank Vision Fund and other
SBIA-managed funds
Other non-operating income (loss)9
Income before income tax
Income taxes

50,038(792,655)(5,457)-

Net income from continuing operations(742,617)-

Discontinued operations

Finance cost
Income (loss) on equity method
investments

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

Change in third-party interests in
SVF1(5,457)
Other gain (loss)
50,038 Income before income tax(792,655)
Income taxes(742,617) Net income from continuing operations
Discontinued operations

Net income from discontinued
operations(58,143)-(58,143) Net income from discontinued
operations

Net income(800,760)-(800,760) Net income

78SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2021

Notes:
1. ¥11,879 million previously presented in “Gain relating to loss of control over subsidiaries” was reclassified as “Other gain (loss).”
2. ¥(121,051) million previously presented in “Other operating income (loss)” was reclassified as “Gain (loss) on other investments”
for ¥(48,922) million, “Income (loss) on equity method investments” for ¥(14,442) million, and “Other gain (loss)” for ¥(57,687)
million.
3. Of ¥(1,931,345) million previously presented in “Operating income from SoftBank Vision Fund and other SBIA-managed funds,”
gain and loss on investments was reclassified as “Gain (loss) on investments at SVF1, SVF2, and others” for ¥(1,844,867) million
and other amounts were reclassified as “Selling, general and administrative expenses” for ¥(86,478) million.
4. “Dilution gain from changes in equity interest,” which was separately presented, was reclassified as “Other gain (loss)” since theamount became not significant.
5. ¥(9,271) million previously presented in “Foreign exchange gain (loss)” was reclassified as “Other gain (loss).”
6. Derivative gain and loss relating to gain and loss on investments of ¥(70,997) million, which was previously presented in“Derivative gain (loss),” was reclassified as “Gain (loss) on investments at Investment Business of Holding Companies” for¥(66,343) million and “Gain (loss) on other investments” for ¥(4,654) million.
7. ¥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.”
8. ¥(668,971) million previously presented in “Gain (loss) from financial instruments at FVTPL” was reclassified as “Gain (loss) on
investments at Investment Business of Holding Companies” for ¥(667,983) million and “Gain (loss) on other investments” for¥(988) million.
9. ¥(285,143) million previously presented in “Other non-operating income (loss)” was reclassified as “Gain (loss) on investments at
Investment Business of Holding Companies” for ¥107 million, “Gain (loss) on other investments” for ¥4,970 million, and “Other
gain (loss)” for ¥(290,220) million.

79

SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2021

(Consolidated statement of cash flows)
For the fiscal year ended March 31, 2020
(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
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
Dilution gain from changes in equity
interest2
Derivative (gain) loss3
Gain relating to settlement ofvariable prepaid forward contract

After changes in presentation(742,617)-(58,143)-(800,760)-

Cash flows from operating activities
Net income from continuing(742,617)
operations
Net income from discontinued(58,143)
operations(800,760) Net income

2,051,472-

2,051,472(11,879)

11,879--(484,308)(484,308)(Gain) loss on investments at
Investment Business of Holding
Companies

1,844,867-

1,844,867(Gain) loss on investments at SVF1
and SVF2, and others

613,483-

613,483(636,555)

14,442(622,113)(339,842)

339,842-

66,660(70,997)(4,337)(1,218,527)

1,218,527-

668,405(668,405)-(540,930)-(540,930)

290,578(290,578)--

50,65050,650688,704-

688,704(242,697)-(242,697)(374,722)-(374,722)

88,728-88,728276,332(121,052)

155,280

Other

2,423,317-

2,423,317

Subtotal

Depreciation and amortization

Finance cost
(Income) loss on equity method
investments

Derivative (gain) loss (excluding(gain) loss on investments)using Alibaba shares4(Gain) loss from financial
instruments at FVTPL5
Change in third-party interests in
SoftBank Vision Fund and other
SBIA-managed funds
Foreign exchange (gain) loss andother non-operating (income) loss6

Income taxes(Increase) decrease in trade and otherreceivables(Increase) decrease in inventories
Increase (decrease) in trade and otherpayablesOther7
Subtotal

80

Change in third-party interests in
SVF1(Gain) loss on other investments andother (gain) loss
Income taxes(Increase) decrease in trade and otherreceivables(Increase) decrease in inventories
Increase (decrease) in trade and otherpayablesSoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2021

Notes:
1. ¥(11,879) million previously presented in “Gain relating to loss of control over subsidiaries” was reclassified as “(Gain) loss onother investments and other (gain) loss.”
2. “Dilution gain from changes in equity interest,” which was separately presented, was reclassified as “(Gain) loss on otherinvestments and other (gain) loss” since the amount became not significant.
3. Derivative gain and loss relating to gain and loss on investments of ¥70,997 million, which was previously included in “Derivative(gain) loss,” was reclassified as “(Gain) loss on investments at Investment Business of Holding Companies” for ¥66,343 millionand “(Gain) loss on other investments and other (gain) loss” for ¥4,654 million.
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. ¥668,405 million previously presented in “’(Gain) loss from financial instruments at FVTPL” was reclassified as “(Gain) loss on
investments at Investment Business of Holding Companies” for ¥667,983 million and “(Gain) loss on other investments and other(gain) loss” for ¥422 million.
6. ¥290,578 million previously presented in “Foreign exchange (gain) loss and other non-operating (income) loss” was reclassified as“(Gain) loss on other investments and other (gain) loss” for ¥290,685 million and “(Gain) loss on investments at Investment
Business of Holding Companies” for ¥(107) million.
7. ¥121,052 million previously included in “Other” was reclassified as “(Gain) loss on other investments and other (gain) loss” for¥106,610 million and “(Income) loss on equity method investments” for ¥14,442 million.

81

SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2021

2. Significant accounting policies(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 investmentcommittee, which was established as a committee of SBIA. SBIA is an advisory company and is a whollyowned 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 performanceas 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.

82

SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2021

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 isdeemed to control under IFRS 10 are subsidiaries of the Company. Accordingly, their results ofoperations, assets and liabilities are included in the Company’s consolidated financial statements.
Gain and loss on investments in the subsidiaries of the Company which are recognized in SVF1 areeliminated in consolidation.
(b) Investments in associates and joint ventures
Of the portfolio company investments made by SVF1 and SVF2, the portfolio companies over which theCompany has significant influence under IAS 28 “Investments in Associates and Joint Ventures” areassociates of the Company, and the portfolio companies that are joint ventures of SVF1 and SVF2 when,as defined under IFRS 11 “Joint Arrangements,” SVF1 and SVF2 have joint control with other investors
under contractual arrangements and the investors have rights to the net assets of the arrangement.
The investments in associates and joint ventures of the Company made by SVF1 and SVF2 are accounted
for as financial assets at FVTPL in accordance with paragraph 18 of IAS 28, and presented as“Investments from SVF1 and SVF2 accounted for using FVTPL” in the consolidated statement offinancial position. The payments for these investments are presented as “Payments for acquisition of
investments by SVF1 and SVF2” and the proceeds from sales of these investments are presented as“Proceeds from sales of investments by SVF1” under cash flows from investing activities in the
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 consolidated
statement of financial position and the consolidated statement of cash flows are the same as the above“(b) Investments in associates and joint ventures.”83SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2021

c. Contribution from limited partners to SVF1 and SVF2
SVF1 and SVF2 issue capital calls to its limited partners (“Capital Call”).
No contributions from limited partners other than the Company were made into SVF2 from inception to
March 31, 2021.
(a) Contribution from limited partners other than the Company
The interests attributable to limited partners other than the Company (“Third-Party Investors”) areclassified as financial liabilities, “Third-party interests in SVF1” in the consolidated statement offinancial position, due to the predetermined finite life and contractual payment provision to each of thelimited partners at the end of the finite life within the limited partnership agreement. The liabilities areclassified as “financial liabilities measured at amortized cost” upon initial recognition. The carrying
amounts attributable to Third-Party Investors represent the amounts that would be distributed inaccordance with the limited partnership agreement in a theoretical liquidation scenario at the end of eachquarter.
“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 consolidated statement of income.
Contributions from Third-Party Investors to SVF1 are included in “Contributions into SVF1 from thirdparty investors” under cash flows from financing activities in the 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 the 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 consolidated statement of financial position.
(b) Contribution from the Company
Contributions to SVF1 and SVF2 from the Company as limited partners are eliminated in consolidation.

84

SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2021

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

85SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2021

c. Restricted cash
Restricted cash in SB Northstar is the deposit pledged as collateral to the brokers for acquisition transactionsof investments using borrowings, derivative transactions, and credit transactions and its usage is restricted.
The restricted cash is included in “Other financial assets (current)” in the consolidated financial position andchanges in restricted cash in SB Northstar are presented as net of “(Increase) decrease in restricted cash inasset management subsidiaries (cash flows from operating activities)” in the consolidated statement of cash
flows.
d. Margin deposits
Margin deposits in SB Northstar are the deposits pledged as collateral for unsettled balance for acquisitionand sale of investments and unsettled derivatives to the brokers and are included in “Other financial assets(current)” in the 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, changes inmargin deposits in SB Northstar are included under cash flows from operating activities in the consolidated
statement of cash flows.
e. Borrowed securities
The securities borrowed for short credit transactions have obligations for delivery of future financial assets
and meet the definition of financial liabilities held for sale in accordance with IFRS 9. Therefore, they areaccounted for as financial instruments at FVTPL and included in “Other financial liabilities (current)” in the
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 consolidated statement ofincome. In addition, changes in borrowed securities in SB Northstar are included under cash flows fromoperating activities in the consolidated statement of cash flows.

86SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2021

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 nolonger 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 theCompany 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. andDeutsche Telekom AG (“Deutsche Telekom”) on April 29, 2018 (EST) (“Business Combination Agreement,”
which was previously 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.
were merged 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 and into 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 andowned 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 ofApril 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 other comprehensive income, and non-controlling interests in Sprint) wasrecorded as gain relating to loss of control for the fiscal year ended March 31, 2021. 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 the second 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 number of shares to be surrendered, subject to the terms and conditions included
as part of the Business Combination Agreement.

87SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2021

The Company recognizes the fair value of the contingent consideration as “Derivative financial assets (noncurrent)” in the 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 consolidated statement of income.
Operating results related to Sprint for the fiscal year ended March 31, 2020 and gain relating to loss of control
over Sprint for the fiscal year ended March 31, 2021 are presented as discontinued operations, separatelyfrom continuing operations, in the consolidated statement of income.
In addition, of 304,606,049 shares of T-Mobile common stock held, 173,564,426 shares were transferred by
the Company on June 26, 2020. As a result of the transaction, 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 wasno longer considered as an equity method associate of the Company. The details are described in “Note 23.
Additional information.”88

SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2021

a. Disposal group classified as held for sale(Millions of yen)

As ofMarch 31, 2020
Assets classified as held for sale
Cash and cash equivalents
Trade and other receivables
Other financial assets
Inventories
Other current assets
Total current assets
Property, plant and equipment
Right-of-use assets
Goodwill
Intangible assets
Costs to obtain contracts
Investments accounted for using the equity
methodInvestment securities
Other financial assets
Other non-current assets
Total non-current assets
Total assets
Liabilities directly relating to assets classified asheld for saleInterest-bearing debt
Lease liabilities
Trade and other payables
Income taxes payables
Provisions
Other current liabilities
Total current liabilities
Interest-bearing debt
Lease liabilities
Derivative financial liabilities
Other financial liabilities
Provisions
Deferred tax liabilities
Other non-current liabilities
Total non-current liabilities
Total liabilities

89

As of
March 31, 2021

240,982
385,511
7,166
97,712
131,240
862,611-

1,890,600
763,529
322,978
5,082,956
196,438

-

3,049

-

3,225
47,14063,522
8,373,437
9,236,048-

331,881
202,743
395,415
1,949
8,720
292,041
1,232,749-

3,591,777583,348
5,189
4,298
81,261
746,834
209,515
5,222,222
6,454,971-

SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2021

(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 ofMarch 31, 2021

(3,454)-

209,149-

205,695-

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

Fiscal year ended
March 31, 2020

Fiscal year ended
March 31, 2021

Net sales
Cost of sales
Selling, general and administrative expenses
Finance cost
Other
Income from discontinued operations before
income tax
Income taxes
Income from discontinued operations after income
tax
Gain relating to loss of control overdiscontinued operations1,2
Net income from discontinued operations

3,321,535(2,131,312)(956,029)(312,534)(69,208)-(147,548)-

108,993-(38,555)--

720,842(38,555)

720,842

Net income from discontinued operations
Other comprehensive income from discontinued
operations
Comprehensive income from discontinued
operations(38,555)

720,842(82,211)(205,694)(120,766)

515,148

Notes:
1. Tax expense is presented as zero in the consolidated statement of income because the taxable income at SoftBank Group Corp. is
not generated for the fiscal year despite income related to discontinued operations for the acquired contingent consideration at thetime 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, including monetary losses resulting from certain
specified matters, incurred by Sprint and its subsidiaries due to the cessation of T-Mobile’s and its subsidiaries’ access to thefrequencies of Sprint and its subsidiaries under certain circumstances based on the Business Combination Agreement, which theCompany entered into with the parties, including Sprint, T-Mobile US, Inc., and Deutsche Telekom, in principle. It was probablethat the Company would indemnify the losses incurred. Accordingly, ¥26,362 million including ¥870 million which is thereasonably estimated provision as of March 31, 2021, was recorded as the indemnification for the fiscal year ended March 31,
2021. The indemnification and expenses arising from the merger transaction are deducted from gain relating to loss of control
under discontinued operations.

90SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2021

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

Fiscal year ended
March 31, 2020
Cash flows from operating activities
Cash flows from investing activities
Cash flows from financing activities

Fiscal year ended
March 31, 2021

641,013(549,794)(612,373)(521,154)(45,647)(45,647)

The disposal of Sprint shares as of April 1, 2020 was conducted as a share exchange with T-Mobile sharesand is correspond to a non-cash transaction.
(2) Brightstar
On September 17, 2020, the Company has entered into a definitive agreement with Brightstar CapitalPartners, in order to sell all of its shares in Brightstar to a newly formed subsidiary of Brightstar CapitalPartners. Upon this agreement, it was highly probable that Brightstar would no longer be a subsidiary of theCompany at the completion of the transaction. Accordingly, assets, liabilities, and accumulated othercomprehensive income of Brightstar were reclassified as a disposal group classified as held for sale.
Brightstar was measured at the fair value less costs to sell (expected sale price) as the expected sale price islower than the carrying amount of Brightstar. As a result, the Company recorded an impairment loss on
goodwill for ¥12,423 million.
On October 22, 2020, the sale of all shares in Brightstar was completed. As a result of the transaction,
Brightstar was excluded from the scope of consolidation of the Company. The difference between theconsideration less costs to sell and the carrying amount of Brightstar (assets, liabilities, accumulated othercomprehensive income, and non-controlling interests in Brightstar) was recorded as gain relating to loss ofcontrol for the fiscal year ended March 31, 2021.
Operating results related to Brightstar are presented as discontinued operations, separately from continuing
operations, in the consolidated statement of income. Also, the above impairment loss on goodwill and gain
relating to loss of control are presented as discontinued operations.
The consideration consists of cash 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. 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.

91

SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2021

a. Results of operations from discontinued operations(Millions of yen)
Fiscal year ended
March 31, 2020

Fiscal year ended
March 31, 2021

Net sales
Cost of sales
Selling, general and administrative expenses
Finance cost
Other
Income from discontinued operations before
income tax
Income taxes
Income from discontinued operations after income
tax
Gain relating to loss of control overdiscontinued operations
Net income from discontinued operations

946,155(900,769)(50,565)(7,051)(2,316)

330,929(303,409)(18,992)(2,044)(15,459)(14,546)(8,975)(5,042)(2,082)(19,588)(11,057)-

1,163(19,588)(9,894)

Net income from discontinued operations
Other comprehensive income from discontinued
operations
Comprehensive income from discontinued
operations(19,588)(9,894)

(902)

2,902

(20,490)(6,992)b. Cash flows from discontinued operations(Millions of yen)

Fiscal year ended
March 31, 2020
Cash flows from operating activities
Cash flows from investing activities
Cash flows from financing activities

38,340(5,759)(34,642)(2,061)

92

Fiscal year ended
March 31, 2021
38,733(4,807)(1,475)32,451

SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2021

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
Fund and 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 theinvestment activities has increased even further for the overall consolidated financial results of the Company.
Consequently, business segments that are regularly reviewed by the Company’s Board of Directors havebeen changed. As a result of the change, 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, theCompany 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 ishighly probable that Brightstar will no longer be a subsidiary of the Company. As a result, Brightstar has
been classified as discontinued operations and the Brightstar segment is excluded from the reportablesegments.
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 Fundand Other SBIA-Managed Funds segment was renamed to the SVF1 and Other SBIA-Managed Funds
segment from the three-month period ended September 30, 2020. In addition, following the signing of thedefinitive agreement with NVIDIA Corporation in order to sell all of its shares in Arm Limited to NVIDIA
Corporation, the organizational structure of Arm has been changed from the three-month period ended March
31, 2021. As a result, the Treasure Data business and the other IoT related business, which were included in
the Arm segment, have been excluded from the Arm segment and transferred to “Other.”The Investment Business of Holding Companies segment conducts, mainly through SoftBank Group Corp. asa strategic investment holding company, investment activities in a wide range of sectors in Japan andoverseas 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 theCompany that conduct investment or funding. SB Northstar is engaged in various transactions such as
acquisition and sale of listed stocks, derivative transactions related to listed stocks, credit transactions, andothers for diversification of the assets 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 through subsidiaries of the Company. However, gain and loss on
investments relating to investments in subsidiaries including dividend income from subsidiaries andimpairment loss on investments in subsidiaries are excluded.

93SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2021

The SVF1 and Other SBIA-Managed Funds segment conducts, mainly through SVF1 and SVF2, investment
activities in a wide range of technology sectors. Primarily, gain and loss on investments at SVF1, SVF2, andothers 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. Services related to LINE are includedin the SoftBank segment following the business integration of Z Holdings Corporation and LINE Group.
The Arm segment provides, through Arm, designs of microprocessor intellectual property and related
technology, the sale of software tools, and related 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 activities by SoftBank Latin America
Fund L.P., and the Fukuoka SoftBank HAWKS-related operations.
“Reconciliations” includes an elimination of intersegment transactions, as well as an elimination of gain andloss on the investment in shares in Arm, a subsidiary of the Company, which are included in segment incomeof 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 on equity method investments is eliminated because the Company consolidates PayPay
Corporation as its subsidiary and related amounts are also included in “Other.”Segment information for the fiscal year ended March 31, 2020 is presented based on the reportable segments
after the aforementioned change.
(2) Net sales and income of reportable segments
Income of reportable segments is defined as “Income before income tax.” 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 reportablesegments to be reported to the Company’s Board of Directors in order to make decisions about the allocationof resources and assess 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 statementof income, “Gain (loss) on investments” included in segment income includes realized gain and loss fromsales of investments in financial assets at FVTPL for which investment performance is measured at fairvalue, unrealized gain and loss on valuation of investments, dividend income from investments, derivative
gain and loss relating to investments in financial assets at FVTPL, and realized gain and loss from sales ofinvestments accounted for using the equity method. The Investment Business of Holding Companies segment
calculates its segment income by eliminating gain and loss on investments relating to investments in
subsidiaries, including dividend income from subsidiaries and impairment loss on investments in
subsidiaries.
Intersegment transaction prices are determined under the same general business conditions as applied forexternal customers.
94

SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2021

For the fiscal year ended March 31, 2020
(Millions of yen)

Reportable segments
Investment Businessof Holding Companies

SVF1 and Other
SBIA-Managed Funds

SoftBank

Arm

Net sales
Customers
Intersegment--

4,852,917
9,567

196,691
375

Total

-

-

4,862,484

197,066

913,740(1,412,574)

815,617(11,105)(3,862)(402)(701,984)(71,740)

484,308(1,844,867)

9,720

312

(198,535)(23,547)(60,155)(956)

657,232-(41,839)923(1,886)

-

(20)

(673)

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

Total

Other

Reconciliations

Consolidated

Net sales
Customers

5,049,608

189,330-

5,238,938

9,942

16,442(26,384)-

5,059,550

205,772(26,384)

5,238,938

Segment income

305,678(299,703)

44,06350,038Depreciation andamortization(777,988)(46,587)-(824,575)

Gain (loss) on
investments(1,350,527)(59,626)-(1,410,153)(283,193)(17,018)

6,314(293,897)

616,316(30,169)

37,868624,015(2,579)

2,594

-

15

Intersegment
Total

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

95

SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2021

For the fiscal year ended March 31, 2021
(Millions of yen)

Reportable segments
Investment Businessof Holding Companies

SVF1 and Other
SBIA-Managed Funds*

SoftBank

Arm

Net salesIntersegment

Customers--

5,190,976
13,374208,917
931

Total

-

-

5,204,350

209,848

760,927

4,026,823

847,933(33,873)(2,304)(535)(729,914)(71,225)

946,1076,357,462

1,433

364

(218,604)(10,419)(64,322)(1,044)

601,364-(45,048)

1,958(477,536)

-

410

847

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

Total

Other

Reconciliations

Consolidated

Net sales
Customers

5,399,893

228,274-

5,628,167

Intersegment

14,305

10,317(24,622)-

Total

5,414,198

238,591(24,622)5,628,167

Segment income

5,601,810

92,625(23,979)

5,670,456

Depreciation andamortization(803,978)(42,954)-(846,932)

Gain (loss) on
investments

7,305,366

289,241(65,601)

7,529,006(294,389)(16,621)3,760(307,250)

558,274

21,57836,580616,432(476,279)(3,972)-(480,251)

Finance cost
Income (loss) on equity
method investments
Derivative gain (loss)(excluding gain (loss) on
investments)
Note:* The details of the difference between “Gain (loss) on investments” in the SVF1 and Other SBIA-Managed Funds segment and “Gain(loss) on investments at SVF1, SVF2, and others” in the consolidated statement of income are described in “Note 6. SVF1 and other
SBIA-managed funds business.”

96SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2021

5. Special purpose acquisition companies sponsored by the Company
A special purpose acquisition company (“SPAC”) is an investment vehicle formed for the purpose of effecting amerger, share exchange, asset acquisition, share purchase, reorganization or similar business combination with
one or more businesses that have not yet been identified at the time of the offering. Subsequent to its formation,
the SPAC executes an initial public offering and raises capital through contributions from public investors. The
SPAC then seeks to identify an unlisted company as a target company and completes a business combination
with the target company with necessary approvals. The SPAC becomes the legal surviving company, and thetarget company, which is an unlisted company, becomes a publicly listed company through the businesscombination. A SPAC may arrange committed equity financing in private placement with certain investors inorder to raise additional funds necessary for the business combination (“Private Investment in Public Equity”).
For the fiscal year ended March 31, 2021, Fortress, SBIA, and the subsidiary in the investment fund business in
Latin America (subsidiaries of the Company) have formed, as sponsors, nine SPACs. These SPACs have raised
funds through initial public offerings in the United States. For the fiscal year ended March 31, 2021, the total
funds raised were $3,304 million (the amounts for Fortress, SBIA, and the subsidiary in the investment fundbusiness in Latin America were $1,920 million, $1,154 million and $230 million, respectively).
Since the Company is deemed to have control over the SPACs from inception until its merger with a target
company, the SPACs are consolidated as subsidiaries. The Company, as sponsor, acquires shares and, if
applicable, warrants of SPACs as consideration for funds invested by the Company in SPACs. Investments in
SPACs by the Company as sponsor, as well as investments by other subsidiaries of the Company, are eliminatedin consolidation.
The proceeds received from investors other than the Company as sponsor (“Public Market Investors”) can only
be used for the initial merger and redemptions of the proceeds to Public Market Investors. The proceeds received
are held in a trust account until completion of the initial merger or redemption to Public Market Investors andare invested only in certain financial assets that are highly liquid.
The carrying amounts of the assets restricted on its use held in the trust accounts are as follows;(Millions of yen)
As ofMarch 31, 2020

As ofMarch 31, 2021

Other financial assets (non-current)
Trust accounts in SPACs-

327,569

The amount of ownership interests held by Public Market Investors include proceeds received from PublicMarket Investors at the initial public offering and income including interest earned on such proceeds. Sharesissued by a SPAC at the initial public offering are subject to conditions that the SPAC will cease all operations
and redeem all of the proceeds received from Public Market Investors in the SPAC to them if the SPAC isunable to complete a merger within 24 months from the date of the initial public offering. In addition, PublicMarket Investors retain an option to redeem part or all of proceeds received from them upon completion of theinitial merger. When the condition is met or the option is exercised, the relevant SPAC will be obligated toredeem them for cash and, therefore, non-controlling interests subject to possible redemption are included in andpresented as “Other financial liabilities (non-current)” and classified as “financial liabilities measured atamortized cost” in the consolidated statement of financial position.

97

SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2021

The carrying amounts of non-controlling interests subject to possible redemption are as follows:(Millions of yen)
As ofMarch 31, 2020

As ofMarch 31, 2021

Other financial liabilities (non-current)
Non-controlling interests subject to possible-

redemption

298,092

When the Company loses control over a SPAC due to a successful merger with a target company, the SPAC will
no longer be subject to consolidation. For the fiscal year ended March 31, 2021, a SPAC sponsored by Fortresscompleted a merger with a target company and that SPAC was excluded from the scope of consolidation due toloss of control. Furthermore, an agreement to merge with a target company was completed between another
SPAC sponsored by Fortress as of March 31, 2021.

98SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2021

6. 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 theamount 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
is presented 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)
Fiscal year ended
March 31, 2020

Fiscal year ended
March 31, 2021

Gain (loss) on investments at SVF1, SVF2, andothersRealized gain on sales of investments

58,340419,640(1,877,682)

6,013,404(40,012)(116,345)

12,84829,849

145

1,091

1,494

9,823

(1,844,867)

6,357,462

Selling, general and administrative expenses(86,484)(74,194)

Finance cost (interest expenses)(23,547)(10,419)

Change in third-party interests in SVF1

540,930(2,246,417)

1,394

391

(1,412,574)

4,026,823

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

Other gain
Segment income arising from the SVF1 and other
SBIA-managed funds business (income before
income tax)99

SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2021

Notes:
1. In September 2020, the Company entered into a definitive agreement with NVIDIA Corporation in order to sell all of its
shares in Arm, a subsidiary of the Company, held by the Company (including shares held by SVF1). Given entry into thedefinitive agreement, SVF1 recorded ¥45,435 million of unrealized gain for the fiscal year ended March 31, 2021 upon thefair 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, SVF2, andothers” (in Change in valuation for the fiscal year under Unrealized gain (loss) on valuation of investments) in the abovementioned segment income. However, the unrealized gain is eliminated in consolidation as Arm is a subsidiary of theCompany.
In addition, SVF1 received ¥19,912 million of dividends from Arm for the fiscal year ended March 31, 2021. The dividends
received from Arm are included in “Gain (loss) on investments at SVF1, SVF2, and others” (in Dividend income frominvestments) in the above-mentioned segment income, however, the dividends are eliminated in consolidation. The
unrealized gain and the dividends, that are eliminated in consolidation, are not included in “Gain (loss) on investments at
SVF1, SVF2, and others” in the consolidated statement of income.
2. It represents the unrealized gain and loss on valuation of investments recorded as “Gain (loss) on investments at SVF1,
SVF2, and others” in the past fiscal years, which are reclassified to realized gain and loss on sales of investments due to thesales of the shares.
3. Unrealized gain and loss on investments are translated using the average exchange rate for the quarter in which the gain andloss were recognized, while realized gain and loss on disposal of investments are translated using the 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 and loss.

(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 theterms and conditions of distribution. Preferred Equity is prioritized over Equity with regard to distribution
and return of contribution.
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 tolimited partners will be allocated 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 ofthe months June and December.
In the following table, Third-Party Investors contributing Equity are defined as “Investors entitled toperformance-based distribution” and Third-Party Investors contributing Preferred Equity are defined as“Investors entitled to fixed distribution.”100SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2021

b. Changes in interests attributable to Third-Party Investors
Changes in interests attributable to Third-Party Investors (“Third-party interests in SVF1” included in the
consolidated statement of financial position) are as follows:(Millions of yen)(For reference purposes only)
Links with the consolidated financial statements
Third-party interests(Total of current liabilities andnon-current liabilities)

Consolidated statement
Consolidated statement ofof income
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

4,584,419
979,266-

979,266

2,246,417(2,246,417)-

Attributable to investors entitled to
fixed distribution

197,796

Attributable to investors entitled toperformance-based distribution

2,048,621

Distribution/repayment to third-party
investors(1,362,066)-(1,362,066)

Exchange differences on translating
third-party interests*

153,755--

As of March 31, 2021

6,601,791

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

c. Uncalled committed capital from Third-Party Investors
Uncalled committed capital from SVF1’s Third-Party Investors as of March 31, 2021 was $9.4 billion.
No contributions from Third-Party Investors were made into SVF2 from the inception to March 31, 2021,
and there were no third-party interests in SVF2 as of March 31, 2021.

101SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2021

(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 bymultiplying 1% per annum by Equity contributions used to fund investments and paid to SBIA by SVF1
quarterly. A clawback provision is attached to the management fees received, which is triggered undercertain 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
the allocation method as specified in the limited partnership agreement. SBIA is entitled to receive theperformance fees when SVF1 receives cash through disposition, dividend and monetization of an investment.
From the inception of SVF1 to March 31, 2021, the cumulative amount of performance fees paid to SBIA
was $439 million. For the fiscal year ended March 31, 2021, no performance fees were paid to SBIA.
In addition, the performance fees received are subject to clawback provisions which are triggered undercertain conditions based on future investment performance.

102SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2021

7. Business combinations
For the fiscal year ended March 31, 2020
ZOZO, Inc.
(1) Overview of the business combination
With the aim of strengthening its clothing/fashion e-commerce activities in an effort to further expand its ecommerce business, Z Holdings Corporation implemented a tender offer for the common shares of ZOZO,
Inc., as resolved at its Board of Directors meeting held on September 12, 2019. This tender offer wascompleted on November 13, 2019, and the Company acquired ZOZO, Inc.’s 152,952,900 common shares incash for ¥400,737 million. As a result, the Company holds 50.1% of voting rights ratio in ZOZO, Inc., andZOZO, Inc. became a consolidated subsidiary of the Company. In addition, in order to procure part of thefund necessary to acquire the target shares for this business combination, the Company entered into aborrowing arrangement for ¥400,000 million.
(2) Summary of acquiree
Name

ZOZO, Inc.

Nature of business

Planning/operation of fashion online shopping website “ZOZOTOWN”
Planning/development of private brand “ZOZO”
Customer support, operation of logistics center “ZOZOBASE”(3) Acquisition dateNovember 13, 2019(4) Consideration transferred and the component(Millions of yen)
Acquisition date(November 13, 2019)
Payment by cash

400,737
A

Total consideration transferred

103

400,737

SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2021

(5) Fair value of assets and liabilities, non-controlling interests and goodwill on the acquisition date(Millions of yen)
Acquisition date(November 13, 2019)
Cash and cash equivalents

22,876

Trade and other receivables

30,443

Other current assets

7,770

Property, plant and equipment

8,610

Right-of-use assets

20,964

Intangible assets1

503,017

Other non-current assets

13,799Total assets

607,479

Interest-bearing debt (current)

22,000

Lease liabilities (current)

3,854

Trade and other payables

28,362Other current liabilities

9,263

Lease liabilities (non-current)

16,735

Deferred tax liabilities

150,269
3,420

Other non-current liabilities
Total liabilities

233,903

Net assets

B

373,576

Non-controlling interests2

C

185,750

A-(B-C)

212,911

Goodwill3

Consideration transferred is allocated to acquired assets and assumed liabilities based on the fair value on theacquisition date. Allocation of the consideration was completed during the three-month period ended March
31, 2020. There is no change from the initial provisional amount to the final amount.

104

SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2021

Notes:
1. Intangible assets
Identifiable assets of ¥503,017 million are included and the components of intangible assets are as follows; the estimateduseful lives are from 18 to 25 years for customer relationships. Trademarks are classified as intangible assets with indefinite
useful lives. In addition, intangible assets recognized by business combinations are measured based on assumptions such as
estimated future cash flow, discount rate, attrition rate of existing customers, future sales forecast generated by trademarks,
and royalty rate.
(Millions of yen)
Acquisition date(November 13, 2019)
Intangible assets with indefinite useful lives
Trademarks
Intangible assets with finite useful lives

178,720

Customer relationships

322,070
2,227

Other

503,017Total

2. Non-controlling interests
Non-controlling interests are measured based on the proportionate interests in the fair value of the identifiable net assets of
the acquiree.
3. Goodwill
Goodwill reflects excess earning power expected from future business development and the synergy between the Company
and the acquiree.

(6) Payment for acquisition of control over subsidiaries(Millions of yen)
Acquisition date(November 13, 2019)
Payment for the acquisition by cash

(400,737)

Cash and cash equivalents held by the acquiree at the time ofacquisition of control
Payment for the acquisition of control over

22,876(377,861)

the subsidiary by cash(7) Sales and net income of the acquiree

The amounts of the acquiree’s sales and net income before elimination of inter-company transactions after
the acquisition date, which are recorded in the consolidated statement of income for the fiscal year ended
March 31, 2020, are ¥57,462 million and ¥5,773 million, respectively. In addition, amortization expenses
related to intangible assets recognized on the acquisition date are included in the aforementioned net income.

105SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2021

For the fiscal year ended March 31, 2021
Acquisition of LINE Corporation and business integration of LINE Group and Z Holdings Corporation(1) Overview of the business combination
SoftBank Corp., a subsidiary of the Company, consolidated LINE Corporation and implemented the businessintegration of LINE Corporation and Z Holdings Corporation for the purpose of maximizing synergy in eachbusiness field pertaining to Z Holdings Corporation and LINE Group, aggregating management resourcesand enhancing growth in the new business fields.
Through this acquisition, SoftBank Corp. first transferred all the Z Holdings Corporation shares held by
SoftBank Corp. to Shiodome Z Holdings Co., Ltd (subsequently, its corporate form was changed to
Shiodome Z Holdings G.K.), and SoftBank Corp. and NAVER J.Hub Corporation wholly owned by NAVER
Corporation, major shareholder of LINE Corporation, conducted a joint tender offer for the common stock ofLINE Corporation and implemented squeeze-out procedures of minority shareholders as well as making
adjustments of ownership interests toward the LINE Corporation shares held by SoftBank Corp. and NAVER
J.Hub Corporation. As a result, SoftBank Corp. acquired 26,220 thousand common stock of LINE
Corporation for ¥172,992 million excluding transaction costs and therefore the ratio of voting rights held by
SoftBank Corp. in LINE Corporation became 11.2% as of February 25, 2021 (Refer to (a) under Structure
Diagram below.)
LINE Corporation conducted a tender offer for the common stock of Z Holdings Corporation and anabsorption-type merger with Shiodome Z Holdings G.K. As a result, the ratio of voting rights held by
SoftBank Corp. and NAVER Corporation in LINE Corporation became 50.0% respectively as of February
26, 2021. Effective February 28, 2021, LINE Corporation transitioned all the business to LINE Split
Preparation Corporation through a company split (absorption-type company split) and changed its name to A
Holdings Corporation. Under the joint venture agreement entered into with NAVER Corporation, SoftBank
Corp. owns the rights to appoint the majority of the Board of Directors of A Holdings Corporation. As aresult, A Holdings Corporation and LINE Split Preparation Corporation are considered substantiallycontrolled by the Company, through SoftBank Corp., a subsidiary of the Company, and became subsidiariesof the Company, effective February 28, 2021, on which the legally binding joint venture agreement wasentered into by conducting the absorption-type merger. Also, through A Holdings Corporation, SoftBank
Corp., a subsidiary of the Company, owns the rights to appoint the majority of the Board of Directors of Z
Holdings Corporation and accordingly, Z Holdings Corporation is considered continuously controlled by
SoftBank Corp. (Refer to (b) under Structure Diagram below.)
In addition, effective March 1, 2021, a share exchange of common stock of LINE Split Preparation
Corporation was conducted between Z Holdings Corporation and A Holdings Corporation (the exchange
ratio: allotted ratio of Z Holdings Corporation shares to be exchanged for one share of the LINE Split
Preparation Corporation is 11.75 and the allotted number of Z Holdings Corporation shares is 2,831,284,030
shares) whereby LINE Split Preparation Corporation became the wholly-owned subsidiary of Z Holdings
Corporation. As a result, the ratio of voting rights held by A Holdings Corporation in Z Holdings
Corporation became 65.3%. Subsequently, LINE Split Preparation Corporation changed its name to LINE
Corporation (Refer to (c) under Structure Diagram below.)106

SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2021

Structure Diagram(a) Joint tender offer for LINE Corporation sharesand squeeze-out(b) Tender offer for Z Holdings Corporation shares andabsorption-type merger between Shiodome Z
Holdings G.K. and LINE Corporation (currently A
Holdings Corporation) as well as LINE businessdemerger(c) Share exchange between Z Holdings Corporation and
A Holdings Corporation(2) Summary of acquiree
NameLINE Corporation*

Nature of business

Advertising service based on the mobile messenger application “LINE,” corebusiness including the sales of stamp and game services, and strategic
business including Fintech, AI, and commerce service

Note:* Refer to LINE Corporation, surviving company through the absorption-type merger conducted by Shiodome Z Holdings
G.K. As described in “Structure Diagram (b)” under “(1) Overview of the business combination,” LINE Corporation,acquiree, transitioned all the business to LINE Split Preparation Corporation (currently LINE Corporation) and changed its
name to A Holdings Corporation, effective February 28, 2021.

(3) Acquisition dateFebruary 28, 2021

107SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2021

(4) Consideration transferred and the component(Millions of yen)
Acquisition date(February 28, 2021)
Fair value of common shares in LINE Corporation already held at the

172,922time of acquisition of control
Fair value of common shares in Shiodome Z Holdings G.K.

689,150transferred at the time of acquisition of control
A

Total consideration transferred

862,072

Acquisition-related costs incurred for the business combination were ¥1,970 million, of which ¥932 millionand ¥1,038 million are included in “Selling, general and administrative expenses” in the consolidated
statement of income for the fiscal year ended March 31, 2020 and for the fiscal year ended March 31, 2021,
respectively. In addition, as a result of remeasuring interests in LINE Corporation held by SoftBank Corp.
based on the fair value as of the acquisition date, difference on the step acquisition of ¥(70) million isrecognized. The amount is included in “Equity financial assets at FVTOCI” in the consolidated statement ofcomprehensive income.
(5) Fair value of assets and liabilities, non-controlling interests and goodwill on the acquisition date(Millions of yen)
Acquisition date(February 28, 2021)
Cash and cash equivalents

312,791

Trade and other receivables

67,553

Other (current)

46,687

Property, plant and equipment

24,667Right-of-use assets

62,940Intangible assets1

425,401

Investments accounted for using the equity method

168,093

Other (non-current)

104,809

Total assets

1,212,941

Interest-bearing debt (current and non-current)

244,248

Trade and other payables

233,671

Other (current)

49,169Deferred tax liabilities

155,856

Other (non-current)

20,745

Total liabilities

703,689

Net assets

B

509,252

Non-controlling interests2

C

264,257

A-(B-C)

617,077

Goodwill3

108

SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2021

As the recognition of identifiable assets acquired and liabilities assumed as of the acquisition date andmeasurement of their fair values were not complete as of March 31, 2021, the above amounts are provisional
based on the best estimate at present. Accordingly, the allocation of the consideration transferred to assets
acquired, liabilities assumed and resulting goodwill may change in a year from the acquisition date when
additional information related to facts and circumstances that existed as of the acquisition date are obtainedand evaluated.
Notes:
1. Intangible assets
Identifiable assets of ¥406,964 million are included and the components of intangible assets are as follows; the estimateduseful lives are from 12 to 18 years for customer relationships. Trademarks are classified as intangible assets with indefinite
useful lives. In addition, intangible assets recognized by business combinations are measured based on assumptions such as
estimated future cash flow, discount rate, attrition rate of existing customers, future sales forecast generated by trademarks,
and royalty rate.

(Millions of yen)
Acquisition date(February 28, 2021)
Intangible assets with indefinite useful lives
Trademarks
Intangible assets with finite useful lives

170,078
236,886

Customer relationships

406,964Total

2. Non-controlling interests
Non-controlling interests that give the holder a pro-rata share of the net assets of the acquiree at the time of liquidation aremeasured at the recognized amounts of the acquiree’s identifiable net assets as of the acquisition date, multiplied by the ratioof the non-controlling interests as of the acquisition date after the business combination.
3. Goodwill
Goodwill reflects excess earning power expected from future business development and the synergy between the Company
and the acquiree.

(6) Proceeds from acquisition of control over subsidiaries(Millions of yen)
Acquisition date(February 28, 2021)
Cash and cash equivalents held by the acquiree at the time ofacquisition of control
Proceeds in cash from the acquisition of control over the subsidiary109

312,791
312,791

SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2021

8. Disposal group classified as held for sale
As of December 11, 2020, the Company agreed on main terms of a transaction with South Korea-based Hyundai
Motor Company and its affiliates (collectively “Hyundai Motor Group”) and Euisun Chung, Chairman ofHyundai Motor Group, pursuant to which (i) the Company will sell the majority of its shares held in Boston
Dynamics, Inc. (“Boston Dynamics”), to Hyundai Motor Group and Euisun Chung, and (ii) Hyundai Motor
Group and Euisun Chung will subscribe for additional shares of Boston Dynamics. Upon this agreement, it ishighly probable that Boston Dynamics will no longer be a subsidiary of the Company. Accordingly, assets,
liabilities, and accumulated other comprehensive income of Boston Dynamics were reclassified as a disposalgroup classified as held for sale. The disposal group classified as held for sale was measured at the carrying
amount as the consideration from the sale transaction was higher than the carrying amount of Boston Dynamics.
The carrying amounts of assets, liabilities, and accumulated other comprehensive income in Boston Dynamics
are ¥38,647 million, ¥11,271 million, and ¥267 million, respectively as of March 31, 2021. The transaction
requires regulatory approval and satisfaction of certain closing conditions and is expected to be completed byJune 2021.

110SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2021

9. Other financial assets
The components of other financial assets are as follows:(Millions of yen)
As ofMarch 31, 2020

As ofMarch 31, 2021

Current
Restricted cash1, 2

23,907

480,100

Derivative financial assets3

30,087383,315

Marketable securities

230,234

80,797

9,925

36,315

19,334

85,630-(10,935)

313,487

1,055,222

Installment receivables

493,526

481,943

Loan receivables

233,521390,073

Deposits for banking business

201,770

384,394

Trust accounts in SPACs4-

327,569

Investments from asset management subsidiaries5-

97,023

Lease and guarantee deposits

61,32773,355

Advance payments6

44,161-

Other

208,929

247,504

Allowance for doubtful accounts(142,540)(82,599)

1,100,694

1,919,262

Time deposits(maturities of more than three months)
Other
Allowance for doubtful accounts
Total
Non-current

Total
Notes:

1. ¥361,355 million ($3.3 billion) of restricted cash which is required to maintain in a segregated custody account before theexpected early termination date due to exercise of the option to settle the prepaid forward contract using Alibaba shares bycash is included as of March 31, 2021. The details are described in “Notes 3” in “(1) Components of interest-bearing debt”
under “Note 12. Interest-bearing debt.”
2. ¥111,787 million of restricted cash in the asset management subsidiary is included as of March 31, 2021. The details aredescribed in “c. Restricted cash” in “(2) Significant accounting policies for the asset management subsidiary” under “Note 2.
Significant accounting policies.”
3. The increase was primarily due to prepaid forward contracts using Alibaba shares. The details are described in “Notes 3” in“(1) Components of interest-bearing debt” under “Note 12. Interest-bearing debt.”
4. The details are described in “Note 5. Special purpose acquisition companies sponsored by the Company.”
5. The details are described in “a. Investments from the asset management subsidiary” in “(2) Significant accounting policies
for the asset management subsidiary” under “Note 2. Significant accounting policies.”
6. The amount as of March 31, 2020 represents the advance payment related to purchase of WeWork shares.

111SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2021

10. Derivative financial assets (non-current)
The increase was primarily due to the prepaid forward contracts using Alibaba shares and the contingent
consideration related to the acquisition of T-Mobile shares. The details are described in “Notes 3” in “(1)Components of interest-bearing debt” under “Note 12. Interest-bearing debt” for the prepaid forward contracts
using Alibaba shares and in “(1) Sprint” under “Note 3. Discontinued operations” for the contingent
consideration related to the acquisition of T-Mobile shares.
11. Income taxes
For the fiscal year ended March 31, 2021
In May 2020, as part of “SoftBank announces ¥4.5 trillion ($41 billion) program to repurchase shares and reducedebt” announced on March 23, 2020 (the “¥4.5 trillion program”), SBGJ, a wholly-owned subsidiary of theCompany, 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%) was transferred.
¥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 March 31, 2021. Accordingly, ¥460,067 million, the equivalent amount ofincome taxes for gain on sales of SoftBank Corp. shares on a consolidation basis, is deducted from capitalsurplus as “Changes in interests in subsidiaries.”
As a result of the transaction, a loss carry forward whose deferred tax asset was not recognized in SBGJ was
utilized 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.

112

SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2021

12. 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

As ofMarch 31, 2021

Current
1,529,458

2,637,401

206,000

409,201

1,949,571

2,085,348

159,938

804,356-

1,798,701

186

232

3,845,153

7,735,239

Long-term borrowings1, 2

3,821,473

4,745,058

Corporate bonds4

5,268,883

4,745,184

196,101

1,287,038

272

456

9,286,729

10,777,736

Short-term borrowings1
Commercial paper
Current portion of long-term borrowings1, 2Current portion of corporate bonds
Current portion of financial liabilities relating tosale of shares by prepaid forward contracts3
Current portion of installment payables
Total
Non-current

Financial liabilities relating to sale of shares by
prepaid forward contracts3
Installment payables
Total
Notes:

1. Long-term borrowings as of March 31, 2021 include ¥444,227 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 long-termborrowings decreased by ¥1,024,872 million. Accordingly, the collateral was released. In addition, on March 30, 2021,
Skywalk Finance GK made borrowings using Alibaba shares pledged as collateral. As a result, long-term borrowings
increased by ¥887,208 million. The shares are recorded as “Investments accounted for using the equity method” for¥833,317 million in the consolidated statement of financial position as of March 31, 2021.
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 fiscal year ended March 31, 2021, West Raptor Holdings 2, LLC (“WRH2 LLC”), Skybridge LLC,
and Skylark 2020 Holdings Limited (“Skylark Limited”), 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.

113

SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2021

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 the settlement
dates. A cap and a floor are set for the price of shares settled.
b. Contract for the fiscal year ended March 31, 2021: Procured total amount ¥1,660,952 million ($15.4 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.
(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 the settlement
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 the settlement
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 is enteredinto in preparation for Alibaba shares price rise. A portion of the procured amount is used for the payment of option
premium.
(e) Collar contract: Procured amount ¥97,897 million ($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 and afloor are set for the price of shares settled.
(f) 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 and afloor are set for the price of shares settled. In addition to the prepaid forward contracts, the call spread contract is enteredinto in preparation for Alibaba shares price rise.
For the fiscal year ended March 31, 2021, of the aforementioned prepaid forward contracts regarding the contracts a. and b.
(c), amendment of the contract to revise the cap and floor for the price of shares settled has executed and regarding thecontract b. (a) 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. Due to the amendments, the settlement is expected: October 2021 and November 2021 for contract a.;
October 2022 and November 2022 for contract b. (a); and from October 2021 to June 2022 for contract b. (c).

114

SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2021

The amendments of the contracts are applicable for as exchanges of debt instruments with substantially different terms under
IFRS, and accounted for as extinguishments of the original financial liabilities relating to the sale of shares by prepaid
forward contracts and the recognition of new financial liabilities relating to the sale of shares by variable prepaid forward
contracts. Including the new variable prepaid forward contracts, the aforementioned prepaid forward contracts are classified
as hybrid financial instruments with embedded derivatives and the embedded derivatives are measured at fair value and thecall spread is measured at fair value as well. In addition, for the derivative financial assets and the derivative financial
liabilities recognized from the variable prepaid forward contracts, a tax effect is recognized.
As a result of the amendments, upon the extinguishment of the original contracts, ¥1,382,751 million of financial liabilities
related to the sale of shares by prepaid forward contracts and ¥476,301 million of derivative financial liabilities (non-current)
are derecognized. On the other hand, ¥2,179,156 million of new financial liabilities related to the sale of shares by variable
prepaid forward contracts and ¥333,193 million of derivative financial assets are newly recognized and ¥16,211 million of
cash is paid as a difference in exchange value between the original and new contracts. Further, along with the fluctuation ofderivative financial assets and derivative financial liabilities, ¥275,756 million of deferred tax liabilities is increased and thesame amount of income taxes is increased, representing the tax effect.
Embedded derivatives are recognized for ¥359,115 million as “Derivative financial assets (current),” for ¥302,500 million as“Derivative financial assets (non-current),” and for ¥28,096 million as “Derivative financial liabilities (current)” and the callspread is recognized for ¥42,059 million as “Derivative financial assets (non-current)” in the consolidated statement offinancial position as of March 31, 2021.
WRH LLC, WRH2 LLC, Skybridge LLC, Skylark Limited, Scout Limited, and Tigress Limited have the option to settle allof 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 fairvalue 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 arepledged 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 collateral can bereleased 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 completion of thesetransactions because the Company still has significant influence over Alibaba via voting rights. Alibaba shares, pledged ascollateral by the Company in accordance with the prepaid forward contracts, are recognized as “Investments accounted forusing the equity method” in the consolidated statement of financial position as of March 31, 2021 and the carrying amount is¥583,897 million.
Also, for the fiscal year ended March 31, 2021, of the aforementioned prepaid forward contract regarding contract b. (d),Skylark Limited has exercised the option to settle the prepaid forward contract by cash and noticed to counterparty for earlytermination in April 2021. Under the prepaid forward contract, Skylark Limited is required to maintain cash that would
exceed expected early termination amounts in a segregated custody account as restricted cash before the expected earlytermination date. ¥361,355 million ($3.3 billion) of the restricted cash is recognized as “Other financial assets (current)” in
the consolidated statement of financial position as of March 31, 2021.
On April 13, 2021, Skylark Limited paid ¥313,411 million ($2.9 billion) from restricted cash, completing the settlement of
the transactions. ¥285,780 million of current portion of financial liabilities relating to sale of shares by prepaid forward and¥28,096 million of “derivative financial liabilities (current)” which are recognized in the consolidated statement of financial
position as of March 31, 2021, are derecognized. Accordingly, on the same date, ¥61,633 million of Alibaba shares
recognized in the consolidated statement of financial position as of March 31, 2021 is released from the collateral.
4. On July 22, 2020, SoftBank Group Corp. purchased a portion of domestic unsecured corporate bonds and retired these bonds.
These bonds were derecognized as the requirement for the extinguishment was satisfied on the same date. As a result,corporate bonds decreased by ¥167,595 million.

115

SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2021

In addition, on March 10, 2021, SoftBank Group Corp. purchased a portion of foreign-currency-denominated senior notes.
These notes were derecognized as the requirement for the extinguishment was satisfied on the same date. As a result,corporate bonds decreased by ¥222,183 million.

(2) Components of proceeds in short-term interest-bearing debt, net
The components of “Proceeds in short-term interest-bearing debt, net” in the consolidated statement of cash
flows are as follows:(Millions of yen)
Fiscal year ended
March 31, 2020

Fiscal year ended
March 31, 2021

Net increase of short-term borrowings

36,173

1,452,826

Net increase of commercial paper

97,000122,501

133,173

1,575,327

Total(3) Components of proceeds from interest-bearing debt

The components of “Proceeds from interest-bearing debt” in the consolidated statement of cash flows are as
follows:(Millions of yen)
Fiscal year ended
March 31, 2020

Fiscal year ended
March 31, 2021

Proceeds from borrowings

7,043,561

5,707,162

Proceeds from issuance of corporate bonds

1,379,220

597,000

179,145

1,660,952

8,601,926

7,965,114

Proceeds from procurement by prepaid forward
contracts using shares*
Total
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 consolidated statement of cash flows are as
follows:(Millions of yen)
Fiscal year ended
March 31, 2020

Fiscal year ended
March 31, 2021

Repayment of borrowings(4,599,878)(5,223,271)

Redemption of corporate bonds(1,036,765)(567,630)

Payment of installment payables(10,084)-(5,646,727)(5,790,901)

Total

116

SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2021

13. Other financial liabilities
The components of other financial liabilities are as follows:(Millions of yen)
As ofMarch 31, 2020

As ofMarch 31, 2021

Current
Allowance for loan commitment losses1

96,75624,381

Allowance for financial guarantee contract losses2

145,133

10,218

6,121

16,686

248,01051,285-

298,092

77,207

117,315

77,207415,407

Other
Total
Non-current
Non-controlling interests subject to possible
redemption3
Other
Total

Notes:
1. The balance as of March 31, 2021 is an allowance for financial guarantee contract losses related to a credit facility for
WeWork provided by financial institutions and decreased as expected credit losses were lower than the balance as of March
31, 2020 due to the improvement of credit spread for WeWork’s unsecured notes distributed in the market.
2. Allowance for unutilized loan commitment losses related to purchase unsecured notes issued by WeWork. Regarding
liabilities related to the loan commitment, when a wholly-owned subsidiary of the Company other than SVF1 (hereinafter
within “Investments in WeWork”, and the wholly-owned subsidiaries of the Company that invest in WeWork or are parties
to contracts with WeWork are collectively referred to as the “WeWork Investment Subsidiary”) purchased the unsecured
notes, the corresponding amounts were reversed from the liabilities related to the loan commitment and deducted from theinitial recognition amounts of the loan receivables. Also, credit spread for WeWork’s unsecured notes distributed in themarket was improved. The balance decreased as expected credit losses were lower than the balance as of March 31, 2020
mainly due to the abovementioned reasons.
3. The details are described in “Note 5. Special purpose acquisition companies sponsored by the Company.”

117

SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2021

14. Financial instruments(1) Option contracts
The details of option contracts are as follows:
Option contracts to which hedge accounting is not applied(Millions of yen)
As ofMarch 31, 2020

As ofMarch 31, 2021

Carrying amount(fair value)

Carrying amount(fair value)

AssetsLong call option of listed stocks in asset

AssetsLiabilities--

176,627

-

-

-

-

(9,283)--

460,709

-

5,009

-

661,615(28,096)--

42,059----(204,821)

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

Liabilities

forward contracts using Alibaba shares2
Short call option for T-Mobile shares to Deutsche
Telekom AG3

Notes:
1. Acquired due to the merger transaction with Sprint and T-Mobile US, Inc. The details are described in “(1) Sprint” under “Note3. 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
12. Interest-bearing debt.”
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 23. Additional information.”

118

SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2021

(2) Swap contracts
The details of swap contracts are as follows:
Swap contracts to which hedge accounting is not applied(Millions of yen)
As ofMarch 31, 2020

As ofMarch 31, 2021

Carrying amount(fair value)

Carrying amount(fair value)

AssetsTotal return swap contracts of listed stocks in asset

Liabilities-

management subsidiaries

Assets-Liabilities

7,057(5,390)(3) Forward contracts
The details of forward contracts are as follows:
Forward contracts to which hedge accounting is not applied(Millions of yen)
As ofMarch 31, 2020

As ofMarch 31, 2021

Carrying amount(fair value)

Carrying amount(fair value)

AssetsLiabilities

AssetsLiabilities

Tender offer for WeWork shares*

-

-

-

(76,823)

Forward contracts of listed stocks in asset
management subsidiaries

-

-

4,372

-

Note:
* In March 2021, the WeWork Investment Subsidiary commenced a tender offer to purchase WeWork common shares andpreferred shares from certain shareholders other than the Company at a price of $19.19 per shares for the total amount of $922
million. The tender offer is considered as forward contracts and accounted for as derivatives. The difference between thevaluation amount of common shares and preferred shares expected to purchase and the expected acquisition amount wasrecorded as “Derivative financial liabilities (current).” The tender offer was completed in April 2021.

119SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2021

15. Foreign currency exchange rates
Exchange rates of the major currencies used for translating financial statements of foreign operations are as
follows:(1) Rate at the end of the year
(Yen)
As of
March 31, 2020

As ofMarch 31, 2021

USD

108.83110.71

CNY

15.31

16.84

GBP*

133.32-(2) Average rate for the quarter
For the fiscal year ended March 31, 2020
(Yen)
Three-month period
endedJune 30, 2019

Three-month period
ended
September 30, 2019

Three-month period
ended
December 31, 2019

Three-month period
ended
March 31, 2020

USD

110.00107.70108.98109.22

CNY

16.13

15.37

15.46

15.56

GBP*

140.88132.73139.55140.20For the fiscal year ended March 31, 2021
(Yen)
Three-month period
endedJune 30, 2020Three-month period
ended
September 30, 2020Three-month period
ended
December 31, 2020Three-month period
ended
March 31, 2021

USD

107.74105.88104.45106.24

CNY

15.16

15.27

15.71

16.31

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.
This change was made based on the judgement that the primary economic environment in which Arm Limited operates hadchanged 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.

120

SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2021

16. Equity(1) Capital surplus(Partial sales of SoftBank Corp. shares)
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 order to further enhance its cash reserves, a portion of SoftBank Corp. shares held (ownership
percentage 21.7%) was transferred. As a result of the transactions, ¥932,388 million of the equivalent amountfor gain on sales of SoftBank Corp. shares after considering income taxes on a consolidation basis isrecorded as “Changes in interests in subsidiaries” in capital surplus.
(Business integration of LINE Corporation and Z Holdings Corporation)
On February 26, 2021, Shiodome Z Holdings G.K., wholly owned by SoftBank Corp., was merged into
LINE Corporation, the surviving company. Subsequently, on March 1, 2021, a share exchange of commonshares of LINE Split Preparation Corporation was conducted between Z Holdings Corporation and A
Holdings Corporation. As a result of the transactions, capital surplus increased by ¥245,147 million in“Changes in interests in subsidiaries.” The details are described in “Acquisition of LINE Corporation andbusiness integration of LINE Group and Z Holdings Corporation” under “Note 7. Business combinations.”(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 unconditionalright to avoid delivering cash or another financial asset except for distribution of residual assets on
liquidation.

121

SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2021

(3) Treasury stock
Changes in treasury stock are as follows:(Thousands of shares)
Fiscal year ended
March 31, 2020

Fiscal year ended
March 31, 2021

Balance at the beginning of the year

46,827

21,818

Increase during the year*

33,340336,166

Decrease during the year

(58,349)(6,686)

Balance at the end of the year

21,818351,298

Note:* For the fiscal year ended March 31, 2021, 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 (amountpurchased ¥483,971 million). In addition, under the resolutions passed at the Board of Directors meetings held on May 15,
2020, June 25, 2020, and July 30, 2020, the number of treasury stock increased by 233,201 thousand shares (amountpurchased ¥1,742,222 million) as part of “the ¥4.5 trillion program.”(4) Accumulated other comprehensive income
The components of accumulated other comprehensive income are as follows:(Millions of yen)
As ofMarch 31, 2020

As ofMarch 31, 2021

Equity financial assets at FVTOCI

5,115

24,099Debt financial assets at FVTOCI

580

390

13,12842,962(381,082)

270,878(362,259)

338,329

Cash flow hedges
Exchange differences on translating
foreign operations
Total

122

SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2021

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

Fiscal year ended
March 31, 2020

Fiscal year ended
March 31, 2021-

421,755

1,218,527--(20,537)-

134,074-(610,690)(413)

220,875

Unrealized gain (loss) on valuation of investments(672,479)

609,734

Derivative gain (loss) on investments2, 3(66,343)

185,769

5,016

4,964

484,308

945,944

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 gain on valuation of investments at asset
management subsidiaries
Derivative loss on investments at asset management
subsidiaries
Realized gain (loss) on sales of investments

Other
Total

Notes:
1. On June 26, 2020, the Company transferred 173,564,426 shares out of 304,606,049 shares of T-Mobile common stock heldand ¥280,341 million of gain on sales of shares of associates was recorded for the fiscal year ended March 31, 2021.
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 of realized loss on sales of investments and ¥3,014
million of gain related to derecognition of derivative financial liabilities were recorded for the fiscal year ended March 31,
2021. The derivative financial liabilities were recorded as the difference between the transaction price and the fair value of T
-Mobile shares 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 the equity method forthe shares, which were continuously held at the time of discontinuing the use of the equity method, was recorded for the
fiscal year ended March 31, 2021.
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 fiscal year ended March 31, 2021.
As a result of the transactions, ¥421,755 million of gain relating to sales of T-Mobile shares was recorded for the fiscal year
ended March 31, 2021. The details are described in “Note 23. Additional information.”123

SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2021

2. ¥264,395 million of derivative gain on investments was recorded due to changes in the fair value of contingent considerationacquired from the merger transaction with Sprint and T-Mobile US, Inc. for the fiscal year ended March 31, 2021. The
details are described in “(1) Sprint” under “Note 3. Discontinued operations.”
3. The WeWork Investment Subsidiary commenced a tender offer to purchase WeWork shares in March 2021. The difference
between the valuation amount of preferred shares expected to purchase and the expected acquisition amount was recorded as
derivative loss for ¥56,127 million for the fiscal year ended March 31, 2021.

(2) Gain and loss on investments at SVF1, SVF2, and others
The details are described in “Note 6. 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)

Fiscal year ended
March 31, 2020
Realized gain on sales of investments

Fiscal year ended
March 31, 2021

3,188

11,185

Unrealized gain (loss) on valuation of investments(55,741)

259,375

Derivative gain (loss) on investments(4,876)

9,158

Other

7,835

11,320(49,594)

291,038

Total
18. Finance cost
The components of finance cost are as follows:(Millions of yen)
Fiscal year ended
March 31, 2020
(293,897)

Interest expenses

Fiscal year ended
March 31, 2021
(307,250)

19. Derivative gain (loss) (excluding gain (loss) on investments)
For the fiscal year ended March 31, 2021
Derivative loss of ¥504,048 million was recorded for the prepaid forward contracts using Alibaba shares and thecall spread contracts related to the prepaid forward contracts using Alibaba shares. The details of the contracts
are described in “Notes 3” in “(1) Components of interest-bearing debt” under “Note 12. Interest-bearing debt.”

124SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2021

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

Fiscal year ended
March 31, 2020

Fiscal year ended
March 31, 2021

Interest income

33,911

18,352Foreign exchange loss

(9,271)(137,166)-

61,312-58,208339,842

54,941-45,257-

21,634

Impairment loss on equity method investments5(72,626)(68,215)

Impairment loss

(3,404)(21,160)-(17,853)(102,947)(7,533)(90,210)-(59,902)-(40,850)(52,273)(5,457)(44,496)

Reversal of allowance for loan commitment losses1
Reversal of allowance for financial guarantee
contract losses2
Dilution gain from changes in equity interest3
Gain on liquidation of subsidiaries4
Reversal of impairment losses on equity method
investments5

Loss on redemption of corporate bonds6
Provision for allowance for doubtful accounts
Provision for allowance for loan commitment
lossesProvision for allowance for financial guarantee
contract losses
Other
Total
Notes:

1. For the fiscal year ended March 31, 2021, ¥61,312 million of reversal of allowance for unutilized loan commitment losses
related to acquire unsecured notes issued by WeWork was recorded as expected credit losses were lower than the amountrecorded as of March 31, 2020 due to the improvement of credit spread for WeWork’s unsecured notes distributed in themarket.
2. For the fiscal year ended March 31, 2021, ¥50,887 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.
3. For the fiscal year end March 31, 2021, primarily represents the dilution gain arising from changes in Alibaba’s equity
interest held by the Company due to the exercise of stock options in Alibaba .
4. For the fiscal year ended March 31, 2021, primarily, due to the realization of exchange differences resulted from theliquidation of Kahon 3 Oy, a wholly-owned subsidiary of the Company.
5. For the fiscal year ended March 31, 2021, the WeWork Investment Subsidiary purchased WeWork common shares from We
Holdings LLC, served as the managing member by the founder and former CEO of WeWork, Adam Neumann, at $19.19
per share for the total amount of $578 million. The difference between acquisition amount and fair value at the time ofacquisition was recorded as an impairment loss for ¥54,277 million. Subsequently, ¥21,634 million of reversal of
impairment losses was recorded as the fair value of WeWork common shares held increased following the conclusion of themerger agreement between WeWork and BowX Acquisition Corp., which is a SPAC, providing for a business combination

125SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2021

with BowX Acquisition Corp. that is expected to result in WeWork becoming publicly listed on Nasdaq Capital Market or
the New York Stock Exchange.
6. For the fiscal year end March 31, 2021, primarily represents the loss related to foreign-currency-denominated senior notes
purchased by SoftBank Group Corp.

21. Earnings per share(1) Basic earnings per share
Fiscal year ended
March 31, 2020

Fiscal year ended
March 31, 2021

(961,576)

4,987,962(30,948)(30,246)(992,524)

4,957,716(943,097)

4,246,483(49,427)

711,233(992,524)

4,957,716

2,074,225

1,892,538

Continuing operations(454.67)

2,243.80

Discontinued operations(23.83)375.81(478.50)

2,619.61

Net income attributable to ordinary shareholders of the parent(Millions of yen)
Net income attributable to owners of the parent
Net income not-attributable to ordinary shareholders of
the parent2
Net income used in the calculation of basic earnings per share
Net income used in the calculation of basic earnings per share
Net income from continuing operations attributable toordinary shareholders of the parent
Net income from discontinued operations attributable toordinary shareholders of the parent
Total
Weighted-average number of ordinary shares(Thousands of shares)
Basic earnings per share (Yen)

Total

126

SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2021

(2) Diluted earnings per share
Fiscal year ended
March 31, 2020

Fiscal year ended
March 31, 2021

(943,097)

4,246,483(14,151)(331,927)(957,248)

3,914,556(49,427)

711,233(49,427)

711,233(1,006,675)

4,625,789

2,074,225

1,892,538

-

5,385

2,074,225

1,897,923

Continuing operations(461.50)

2,062.55

Discontinued operations(23.83)374.74

Total(485.33)

2,437.29

Diluted net income attributable to ordinary shareholders of theparent (Millions of yen)
Continuing operations
Net income from continuing operations used in thecalculation of basic earnings per share
Effect of dilutive securities issued by subsidiaries andassociates
Subtotal
Discontinued operations
Net income from discontinued operations used in thecalculation of basic earnings per share
Subtotal
Total
Weighted-average number of ordinary shares used in thecalculation of diluted earnings per share(Thousands of shares)
Weighted-average number of ordinary shares
Adjustments:
Stock acquisition rights3
Total
Diluted earnings per share (Yen)

Notes:
1. 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.
2. Net income not-attributable to ordinary shareholders of the parent represents net income attributable to owners of other
equity instruments.
3. Stock acquisition rights are not included in the calculation for diluted earnings per share as it has an antidilutive effect forthe calculation for the fiscal year ended March 31, 2020.

127SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2021

22. Supplemental information to the consolidated statement of cash flows(1) Income taxes paid and income taxes refunded
For the fiscal year ended March 31, 2021
Payment of withholding income tax related to dividends within the group companies of ¥170,264 million is
included in “Income taxes paid.”
In addition, refunded withholding income tax related to dividends within the group companies and deemed
dividends of ¥243,602 million is included in “Income taxes refunded.”(2) Proceeds from sales/redemption of investments
For the fiscal year ended March 31, 2021
¥2,099,746 million of proceeds received from sales of T-Mobile shares is included in “Proceeds fromsales/redemption of investments.”(3) Proceeds from acquisition of control over subsidiaries
For the fiscal year ended March 31, 2021
“Proceeds from acquisition of control over subsidiaries” is cash and cash equivalents held by LINE Group at
the time of acquisition of control.
(4) Payments into restricted cash
For the fiscal year ended March 31, 2021
¥346,765 million of payments, which is the amount in a segregated custody account before the expected
early termination date for financial liabilities related to the settlement of prepaid forward contracts using
Alibaba shares, is included in “Payments into restricted cash.” The details are described in “Notes 3” in “(1)Components of interest-bearing debt” under “Note 12. Interest-bearing debt.”(5) Payments into trust accounts in SPACs
For the fiscal year ended March 31, 2021
“Payments into trust accounts in SPACs” is the amount held in trust accounts for proceeds from initial public
offerings of SPACs sponsored by the Company. The details are described in “Note 5. Special purpose
acquisition companies sponsored by the Company.”

128

SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2021

(6) Proceeds from non-controlling interests subject to possible redemption
For the fiscal year ended March 31, 2021
“Proceeds from non-controlling interests subject to possible redemption” is proceeds from initial public
offerings of SPACs sponsored by the Company. The details are described in “Note 5. Special purpose
acquisition companies sponsored by the Company.”(7) Proceeds from the partial sales of shares of subsidiaries to non-controlling interests
For the fiscal year ended March 31, 2021
“Proceeds from the partial sales of shares of subsidiaries to non-controlling interests” is proceeds received
primarily from sales of SoftBank Corp. shares.
(8) Significant non-cash transactions
For the fiscal year ended March 31, 2021
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 wereoffset 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 ofshares, the net amount is recognized as “Payments for acquisition of investments,” and in case that
account receivables from sales of shares are larger than account payables, the net amount is recognized as“Proceeds from sales/redemption of investments.”
For the fiscal year ended March 31, 2021, ¥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 amountof ¥802,088 million was recognized as “Payments for acquisition of investments.” Also, ¥961,358 millionof account receivable from sales of shares and ¥292,573 million of account payables for acquisition ofshares were offset, and the net amount of ¥668,785 million was recognized as “Proceeds fromsales/redemption of investments.”
b. Sprint Merger
The merger between Sprint and T-Mobile US, Inc. and the acquisition of contingent consideration withthe merger are correspond to significant non-cash transactions. The details are described in “(1) Sprint”
under “Note 3. Discontinued operations.”

129

SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2021

c. Acquisition of LINE Corporation and business integration of LINE Group and Z Holdings Corporation
An absorption-type merger and absorption-type company split, which were conducted in order toconsolidate LINE Corporation by SoftBank Corp., are correspond to significant non-cash transactions asthese transactions are conducted through in-kind contribution by issuing new shares. The details aredescribed in “Acquisition of LINE Corporation and business integration of LINE Group and Z Holdings
Corporation” under “Note 7. Business combinations.”

130SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2021

23. 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,a private 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 their rights
to participate in the rights offering.

(2) Number of shares to be transferred and transaction pricea. Shares to be transferred in the U.S. public offering by TMobile 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 in a
private offering through the Trust and transaction pricethereofc. Shares to be transferred to Marcelo Claure, a director of TMobile and transaction price thereofd. Shares to be transferred to the shareholders in the rights
offering by T-Mobile and transaction price thereof

131

19,417,400 shares
Aggregate transaction price $1,667 million
5,000,000 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

SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2021

(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 TMobile 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
is equal to the average of the daily volume-weighted average price of the shares of T-Mobile for each of
the 20 trading days immediately prior to exercise. Deutsche Telekom can exercise the Call Options after
the exercise of rights described in the above a. 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 heldby the Company 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

101,491,623 sharese. Number of shares held after the Call Options are exercised* 4,800,000 shares

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

132

SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2021

24. Significant subsequent events(Retirement of treasury stock)
SoftBank Group Corp., at the Board of Directors meeting held on April 28, 2021, resolved the retirement oftreasury stock pursuant to Article 178 of the Companies Act of Japan and subsequently the retirement was
conducted as follows.
To increase shareholder profit by decreasing(1) Reason of the retirement

the number of issued and outstanding shares(2) Method of the retirement

Reduction from retained earnings(3) Class of shares retired

Common stock of SoftBank Group Corp.
340,880,200 shares (16.31% of number of issued and(4) Number of shares retired

outstanding shares prior to the retirement)(5) Retirement date

May 11, 2021

(6) Number of issued and outstanding shares after
the retirement

1,748,934,130 shares133