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, 2020 (IFRS)Tokyo, May 18, 2020

1.

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

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

OperatingincomeNet sales
Amount%Amount¥6,185,093 1.5 ¥(1,364,633) -Fiscal year ended
March 31, 2019

¥6,093,548-¥2,073,636

-

Total
comprehensive
incomeAmount%Amount%Amount%¥35,492 (97.9) ¥(800,760)-¥(961,576)-¥(1,290,339)-

Amount%Fiscal year ended
March 31, 2020

Net income

Net income
attributable toowners of theparentIncomebefore income
tax%¥1,682,673-¥1,454,618 17.5 ¥1,411,199 35.8 ¥1,502,295 13.0

Ratio of net income
to equity,
Ratio of income
Ratio of operating
Basic earnings per Diluted earnings per
before income tax to income to net sales
attributable toshare (Yen)share (Yen)total assets (%)
owners of the(%)
parent (%)
Fiscal year ended
March 31, 2020
Fiscal year ended
March 31, 2019¥(478.50)¥(485.33)(14.2)

0.1(22.1)¥634.08¥628.27

22.0

5.0

34.0

Notes:
1. Income on equity method investments
Fiscal year ended March 31, 2020:
Fiscal year ended March 31, 2019:¥ 638,717 million¥ 320,101 million

2. Net sales, operating income, and income before income tax are presented based on the amounts from continuing operations only.
Year-on-year percentage changes in net sales, operating income, and income before income tax for the fiscal year ended March 31,
2019 are not presented because corresponding amounts for the fiscal year ended March 31, 2019 are revised and presented
respectively.
Please refer to page 62 “Note 2. 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 theparentRatio of equity
attributable toowners of the parent
to total assets (%)

Equity per share
attributable toowners of theparent (Yen)

As of March 31, 2020

¥37,257,292¥7,372,917¥5,913,613

15.9

2,619.32

As of March 31, 2019

¥36,096,476¥9,009,204¥7,621,481

21.1

3,380.33

Notes:
1.“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.
2. The Company conducted a share split at a ratio of two-for-one effective June 28, 2019. “Equity per share attributable to owners of
the parent” is calculated assuming that the share split was conducted at the beginning of the previous fiscal year.

(3) Cash Flows

Fiscal year ended
March 31, 2020
Fiscal year ended
March 31, 20192.

Operating activities

Investing activities

Financing activities

Cash and cash
equivalents
at the end of the year

¥1,117,879¥(4,286,921)¥2,920,863¥3,369,015¥1,171,864¥(2,908,016)¥2,202,291¥3,858,518

Dividends
Dividends per shareFirst quarter
Fiscal year ended
March 31, 2019
Fiscal year ended
March 31, 2020
Fiscal year ending
March 31, 2021
(Forecasted)

Fiscal year ended
March 31, 2019
Fiscal year ended
March 31, 2020
Fiscal year ending
March 31, 2021
(Forecasted)

Second quarter

Third quarter

Fourth quarter

Total

(Yen)

(Yen)

(Yen)

(Yen)

(Yen)

-

22.00

-

22.00

44.00

-

22.00

-

22.00

44.00

-

-

-

-

-

Total amount ofdividends(Annual)Payout ratio(Consolidated)

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

47,1663.5

0.8

91,063-

1.5-

Notes:

1. The Company decides the end of the year and the end of the second quarter as the record dates for dividends under thearticles of incorporation, however the forecasted dividend amounts for the fiscal year ending March 31, 2021 are notdetermined at the present moment.
2. The Company conducted a share split at a ratio of two-for-one effective June 28, 2019. The dividend for the fiscal year
ended March 31, 2019 is actual dividend amount before the share split.
* Notes(1) Significant changes in scope of consolidation (changes in scope of consolidation of specified subsidiaries): No
Newly consolidated: None
Excluded from consolidation: None
Note:
* Foreign subsidiaries prepare stand-alone financial statements only under circumstances where it is necessary under theirlocal laws and practices. Applicability of Cabinet Office Ordinance on Disclosure of Corporate Affairs, etc. Article 19,
Paragraph (10), Item (i) to (iii), is determined by using the financial statements.
On the other hand, for foreign subsidiaries that do not prepare stand-alone financial statements, information on thecapital and net assets for those companies is not available. Therefore, Cabinet Office Ordinance on Disclosure of
Corporate Affairs, etc. Article 19, Paragraph (10), Item (i) is used to determine whether the companies are the specified
subsidiaries.
The applicability of Cabinet Office Ordinance on Disclosure of Corporate Affairs, etc. Article 19, Paragraph (10), Item(i) is determined based on the percentage of total amount of purchase from SoftBank Group Corp. and dividend paid to
SoftBank Group Corp. to total amount of operating revenue of SoftBank Group Corp.

For fund-type subsidiaries, the amount of net assets based on financial statements prepared in accordance with thecorresponding laws and practices is used to determine the applicability of Cabinet Office Ordinance on Disclosure of
Corporate Affairs, etc. Article 19, Paragraph (10), Item (ii).
(2) Changes in accounting policies and accounting estimates[1] Changes in accounting policies required by IFRSs: Yes[2] Changes in accounting policies other than those in [1]: No[3] Changes in accounting estimates: Yes
Please refer to page 44 “(1) Changes in Accounting Policies” and “(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, 2020:
2,089,814,330 shares
As of March 31, 2019:
2,201,320,730 shares[2] Number of shares of treasury stock:
As of March 31, 2020:
21,818,471 shares
As of March 31, 2019:93,653,848 shares[3] Number of average shares outstanding during twelve-month period (April-March):
As of March 31, 2020:
2,074,225,377 shares
As of March 31, 2019:
2,175,122,586 shares
Note:*The Company conducted a share split at a ratio of two-for-one effective June 28, 2019. “Number of shares issued,” “Numberof shares of treasury stock,” and “Number of average shares outstanding during twelve-month period” are calculated
assuming that the share split was conducted at the beginning of the previous 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

Amount%Amount%Amount%Amount%Fiscal year ended
March 31, 2020

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

Fiscal year ended
March 31, 2019

¥2,070,057-¥2,017,359-¥1,728,503-¥1,977,693

866.3

Net income pershare-basic (Yen)

Net income pershare-diluted (Yen)

Fiscal year ended
March 31, 2020¥(465.10)¥-

Fiscal year ended
March 31, 2019¥909.23¥907.63

Net income

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, 2020

¥15,199,663¥4,153,205

27.2¥2,000.51

As of March 31, 2019¥15,057,029¥5,440,301

36.0¥2,574.19

Notes:
1. Shareholders’ equity (Non-consolidated)
As of March 31, 2020:
As of March 31, 2019:¥4,137,052 million¥5,425,534 million

2. The Company conducted a share split at a ratio of two-for-one effective June 28, 2019. “Shareholders’ equity per share” iscalculated assuming that the share split was conducted at the beginning of the previous fiscal year.

(3) Differences in Non-Consolidated Operating Results from the Previous Fiscal YearThe decreases in operating revenue, operating income, ordinary income, and net income in the fiscal year ended March 31,
2020 from the previous fiscal year ended March 31, 2019 were mainly attributable to a ¥1,968,668 million year-on-year
decrease in dividends 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 in time and assumptions which are deemed to be reasonable. However, actual results may be different due to various
factors.
On May 18, 2020 (JST), the Company will hold an earnings results briefing for the media, institutional investors, andfinancial institutions. This earnings results briefing will be broadcast live on the Company’s website in both Japanese andEnglish at https://group.softbank/en/corp/irinfo/presentations/. The Data Sheet will also be posted on the website on thesame day at the same site.

SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2020

(Appendix)

Contents
1. Results of Operations ................................................................................................................................................... P. 3
(1) Overview of Results of Operations ........................................................................................................................ P. 3
a. Consolidated Results of Operations..................................................................................................................... P. 5
b. Results by Segment ........................................................................................................................................... P. 14(a) SoftBank Vision Fund and Other SBIA-Managed Funds Segment ............................................................ P. 16(b) SoftBank Segment ....................................................................................................................................... P. 22(c) Arm Segment............................................................................................................................................... P. 24(d) Brightstar Segment ...................................................................................................................................... P. 28(e) Other ............................................................................................................................................................ P. 28(2) Overview of Financial Position ............................................................................................................................ P. 29(3) Overview of Cash Flows ...................................................................................................................................... P. 38(4) Forecasts ............................................................................................................................................................... P. 42
2. Basic Approach to the Selection of Accounting Standards ........................................................................................ P. 43
3. Notes to Summary Information ............................................................................................................................... P. 44(1) Changes in Accounting Policies ........................................................................................................................ P. 44(2) Changes in Accounting Estimates ..................................................................................................................... P. 44
4. Consolidated Financial Statements and Primary Notes ........................................................................................... P. 45(1) Consolidated Statement of Financial Position ................................................................................................... P. 47(2) Consolidated Statement of Income and Consolidated Statement ofComprehensive Income ..................................................................................................................................... P. 49(3) Consolidated Statement of Changes in Equity .................................................................................................. P. 51(4) Consolidated Statement of Cash Flows ............................................................................................................. P. 55(5) Significant Doubt about Going Concern Assumption ....................................................................................... P. 57(6) Notes to Consolidated Financial Statements ..................................................................................................... P. 57

1

SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2020

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

Definition

SoftBank Group Corp.
SoftBank Group Corp. (stand-alone basis)
The Company
SoftBank Group Corp. and its subsidiaries*Each of the following abbreviations indicates the respective company and its subsidiaries, if any.
SoftBank Vision Fund
SoftBank Vision Fund L.P. and its alternative investment vehicles
Delta FundSB Delta Fund (Jersey) L.P.
SBIA
SB Investment Advisers (UK) Limited
SprintSprint Corporation
Arm
Arm Limited
Alibaba
Alibaba Group Holding Limited
WeWork
The We Company
The first quarter
Three-month period ended June 30, 2019
The second quarter
Three-month period ended September 30, 2019
The third quarter
Three-month period ended December 31, 2019
The fourth quarter
Three-month period ended March 31, 2020
The fiscal year
Fiscal year ended March 31, 2020
The previous fiscal year
Fiscal year ended March 31, 2019
Exchange Rates Used for Translations
Average rate for the quarter
Fiscal year ended March 2019
USD / JPY

Fiscal year ended March 2020

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

¥108.71¥111.55¥112.83¥110.46¥110.00¥107.70¥108.98¥109.22

Rates at the end of the period
March 31, 2019

March 31, 2020

USD / JPY

¥110.99¥108.83

GBP / JPY

¥144.98¥133.32

Adoption of IFRS 16
In the first quarter, the Company adopted IFRS 16 “Leases.” Due to the adoption of IFRS 16, the cumulative impact of the
adoption was recognized as an adjustment to the balance of retained earnings on the date of adoption (April 1, 2019), andthe Company has not adjusted the presentation of information of the previous fiscal year. The Company does not adopt
IFRS 16 with respect to lease transactions of intangible assets. See “1. Significant accounting policies” under “(6) Notes
to Consolidated Financial Statements” in “4. Consolidated Financial Statements and Primary Notes” for details.

2SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2020

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

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

1. Results of Operations(1) Overview of Results of Operations (Fiscal year ended March 31, 2020)
1. Highlights of results
 Operating loss of ¥1.4 trillion (deteriorated ¥3.4 trillion yoy)
- Operating loss from SoftBank Vision Fund and other SBIA-managed funds of ¥1.9 trillion: Of this, unrealized
valuation loss (net) was ¥1.9 trillion from investments held by SoftBank Vision Fund at the fiscal year-end.
Fair values of Uber, WeWork and its three affiliates 1 decreased, and total fair value of other portfolio
companies decreased significantly in the fourth quarter, primarily due to the impact of the outbreak of thenovel coronavirus (COVID-19).
- The SoftBank segment showed robust growth, with operating income increasing 7.4% yoy.
 Net loss attributable to owners of the parent of ¥961.6 billion (deteriorated ¥2.4 trillion yoy)
- Income on equity method investments of ¥638.7 billion, including a gain of ¥286.5 billion associated with thereceipt of Ant Financial shares by Alibaba.
- Dilution gain from changes in equity interest of ¥339.8 billion recorded mainly in conjunction with a newissuance of shares by Alibaba upon its listing in Hong Kong.
- Gain relating to settlement of variable prepaid forward contract using Alibaba shares of ¥1,218.5 billion:
Impact on income was ¥856.8 billion, net of the ¥361.8 billion* impact on income taxes caused by a reversalof deferred tax assets.
- Change in third-party interests in SoftBank Vision Fund and other SBIA-managed funds of ¥540.9 billion- Finance cost of ¥300.9 billion*- Losses totaling ¥720.8 billion* recorded related to the investment in WeWork held by a wholly owned
subsidiary of the Company (mainly recorded as loss from financial instruments at FVTPL and provisions forallowance for loan commitment losses and financial guarantee contract losses)* recorded as a cost for the fiscal year

2. Highlights of operations
 On March 13, 2020, the Company decided to execute a share repurchase of up to ¥500 billion.
 On March 23, 2020, the Company decided on a program to sell or monetize up to ¥4.5 trillion of assets torepurchase shares and reduce debt.
 Subsequent to the fiscal year-end, on April 1, 2020, Sprint completed its merger with T-Mobile.
- Following the merger, New T-Mobile became an associate accounted for using the equity method.
- The Sprint business is reclassified as a disposal group classified as held for sale from the fiscal year.

3SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2020

Decision on a program to sell or monetize up to ¥4.5 trillion of assets
On March 23, 2020, the Company’s Board of Directors decided on a program to sell or monetize up to ¥4.5 trillion ofassets held by the Company. The funds obtained from the sale and monetization will be used to repurchase up to ¥2 trillionof the Company’s common stock with the balance to be used for debt redemptions, bond buybacks, and increasing cash
reserves. The transactions will be executed over four quarters. The share repurchase program is in addition to the ¥500
billion share repurchase program announced on March 13, 2020.
The Company believes, the enhanced share repurchase and significant debt reductions, including bond buybacks, throughthis program will further strengthen its balance sheet and enhance its credit rating.

Completion of the merger of Sprint and T-Mobile
The merger of Sprint and T-Mobile US, Inc. (“T-Mobile”) in an all-stock transaction (the “Transaction”) was completed on
April 1, 2020 (ET). From this date, Sprint is no longer a subsidiary of the Company and the combined new company, TMobile US, Inc. (“New T-Mobile”) became an equity method associate of the Company with an approximately 24% shareholding (fully-diluted base).
As of March 31, 2020, the Company had determined the closing of the Transaction to be “highly probable,” and accordingly Sprint’s net income and loss is presented as “net income or loss from discontinued operations,” separate from continuing operations in the Consolidated Statement of Income for the fiscal year. Sprint’s net income and loss for the previous
fiscal year has also been retrospectively revised and presented as “net income or loss from discontinued operations.” In theConsolidated Statement of Financial Position for the fiscal year, assets and liabilities of Sprint are presented as assets andliabilities held for sale.
Following the completion of the Transaction, the Company expects to record the difference between a) the total fair value
as of April 1, 2020 of 304,606,050 New T-Mobile shares acquired and 48,751,557 New T-Mobile shares to be acquired
when certain conditions are met and b) the consolidated carrying amount of Sprint, as gain relating to loss of control under
net income from discontinued operations in the three-month period ending June 30, 2020.

Impact from the COVID-19 outbreakWith the recent global outbreak of COVID-19, many countries are implementing city area lockdowns, restricting social
outings, and restricting border entry and exit. These restrictions have slowed down the flow of people and goods, and casta shadow over the global economy. In April 2020, the International Monetary Fund (IMF) lowered its outlook for global
economic growth in 2020 to -3.0%. Against this backdrop, global stock markets have plunged, starting from around February 2020, and despite the prompt measures taken by the monetary authorities of each country, market volatility remains.
The timing for the end of the COVID-19 pandemic is not clear, and thus it remains difficult to forecast the medium-term
impact on the Company’s business and financial results. However, the Company’s investment businesses, particularly
SoftBank Vision Fund, have already been adversely affected, with SoftBank Vision Fund recording an investment loss of¥1.1 trillion in the fourth quarter due to a decline in the fair values of its investments. If the pandemic continues, theCompany expects that uncertainty in its investment businesses will remain over the next fiscal year.

4SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2020

For SoftBank Corp., the Company expects no significant impact on telecommunication business at this point. For Z
Holdings Corporation, the use of e-commerce is expected to increase, while the advertisement sales and use of hotel andrestaurant reservation services are expected to decrease.
For Arm, the Company expects that if shipments of consumer electronic devices decrease it will likely lower technology
royalty revenue, and if customers delay licensing decisions it will likely lower technology licensing revenue.

a. Consolidated Results of Operations(Millions of yen)

Fiscal year ended March 31
2019

2020

Change6,093,548

6,185,093

91,545

1.5% A

816,995

566,712(250,283)(30.6%) B

1,256,641
2,073,636(1,931,345)(1,364,633)(3,187,986)(3,438,269)- C-

Finance cost

(341,937)(300,948)

40,989(12.0%) D

Income on equity method investments
Dilution gain from changes in equity
interest

320,101

638,717

318,616

99.5% E44,068339,842

295,774

671.2% F

Foreign exchange gain (loss)

10,894(11,107)(22,001)-

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

158,423(71,811)(230,234)- G-

1,218,527

1,218,527- H

36,832(668,463)(705,295)-(586,152)

540,930

1,127,082-

Other non-operating loss

(33,192)(285,562)(252,370)

760.4%

Income before income tax
Income taxes

1,682,673(237,023)

35,492(797,697)(1,647,181)(560,674)(97.9%)
236.5% K

Net income from continuing operations

1,445,650(762,205)(2,207,855)-

Net income from discontinued operations
Net income

8,968
1,454,618(38,555)(800,760)(47,523)(2,255,378)- L-

Net income attributable to owners of the parent

1,411,199(961,576)(2,372,775)-

Total comprehensive income
Comprehensive income attributable to ownersof the parent

1,502,295(1,290,339)(2,792,634)-

1,440,235(1,425,587)(2,865,822)-

Net sales
Operating income (excluding income from
SoftBank Vision Fund and other SBIAmanaged funds)
Operating income from SoftBank Vision
Fund and other SBIA-managed funds
Operating income

Change %I

J

Discontinued operations

5

SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2020

Notes:
1. Indicates gain and loss arising from changes in the fair values of investments held by the Company outside of SoftBank Vision
Fund and other SBIA-managed funds.
2. Indicates the sum of distributions to third-party investors in proportion to their interests in fixed distributions and performancebased distributions. The distributions are based on the gain and loss on investments at SoftBank Vision Fund and other SBIAmanaged funds, net of management and performance fees payable to SBIA, a wholly owned subsidiary of the Company, andoperating and other expenses of SoftBank Vision Fund and other SBIA-managed funds. See “(2) Third-party interests in SoftBank
Vision Fund and Delta Fund” under “4. SoftBank Vision Fund and other SBIA-managed funds business” in “(6) Notes to Consolidated Financial Statements” in “4. Consolidated Financial Statements and Primary Notes” for details.

The following is an overview of main components and components that are noteworthy.
A Net Sales
Net sales increased in the SoftBank and Arm segments, but decreased in the Brightstar segment.
B Operating Income (Excluding Income from SoftBank Vision Fund and Other SBIA-Managed Funds)
Segment income improved ¥63,505 million in the SoftBank segment and ¥18,068 million in the Brightstar segment.
However, segment income deteriorated ¥176,785 million in the Arm segment and ¥159,496 million in the Other
segment. Segment income in the Arm segment in the previous fiscal year included gain relating to loss of control
over subsidiaries of ¥176,261 million, which was recognized as a result of Arm’s Chinese subsidiary becoming a
joint venture.

C Operating Income from SoftBank Vision Fund and Other SBIA-Managed Funds
Unrealized loss on valuation of ¥1,869,283 million from investments held by SoftBank Vision Fund at the fiscal yearend was recorded due to a decrease in the fair values of investments including Uber Technologies, Inc. (“Uber”) andWeWork and its three affiliates1 along with a significant decrease in the total fair value of other portfolio companies
in the fourth quarter, mainly due to the impact of the COVID-19 outbreak. See “(a) SoftBank Vision Fund and Other
SBIA-Managed Funds Segment” under “b. Results by Segment” for details.

As a result of B and C, operating loss was ¥1,364,633 million, deteriorating ¥3,438,269 million year on year.

D Finance Cost
Interest expenses increased ¥17,313 million at SoftBank Corp. but decreased ¥51,826 million at SoftBank Group
Corp.2 This was mainly because SoftBank Corp. borrowed ¥1.6 trillion through a senior loan in August 2018 in
preparation for listing and used the entire amount for repayment of its borrowings from SoftBank Group Corp., which
in turn used the entire amount to partially repay its own senior loan. This early repayment of borrowings resulted ina full amortization of borrowing expenses of ¥24,051 million, which also pushed up interest expense at SoftBank
Group Corp. in the previous fiscal year.

6SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2020

E Income on Equity Method Investments
Income on equity method investments related to Alibaba increased ¥321,458 million (94.9%) year on year, to¥660,141 million. Alibaba received newly issued shares (a 33% equity interest) of Ant Small and Micro Financial
Services Group Co., Ltd. (“Ant Financial,” operator of the electronic payment service Alipay) in September 2019,
pursuant to the 2014 share and asset purchase agreement, as amended, among Alibaba, Ant Financial, and others.
The consideration paid by Alibaba to receive the newly issued 33% equity interest in Ant Financial was funded by
payments from Ant Financial and its subsidiaries to Alibaba in consideration for certain intellectual property rights
and assets held by Alibaba. Following this, Alibaba recorded a gain of CNY71.6 billion, which was the result fromthe transfer of such intellectual property rights and assets to Ant Financial and the basis difference determined basedon Alibaba’s share of Ant Financial’s net assets, net of its corresponding deferred tax effect. This boosted income onequity method investments related to Alibaba by ¥286,473 million.

F Dilution Gain from Changes in Equity Interest
On November 26, 2019, Alibaba listed its shares on The Stock Exchange of Hong Kong Limited and newly issued
575 million shares of common stock, including a subsequent overallotment. Mainly due to this impact, the Company
recorded a dilution gain from changes in equity interest of ¥339,374 million. There were no changes in the numberof shares held by the Company and its wholly owned subsidiaries (5,390 million shares of common stock in total).
G Derivative Gain and Loss
As described below in “Investments in WeWork,” the Company holds warrants that are convertible into preferredstock of WeWork at an exercise price of $0.01 per share. The Company recorded a change of ¥76,259 million in thefair value of these warrants between the time of the contract and the fiscal year-end as a derivative loss. In the previous
fiscal year, the Company recorded derivative gain of ¥177,373 million arising up to the point of settlement of a collartransaction related to NVIDIA Corporation shares in January 2019.

H Gain Relating to Settlement of Variable Prepaid Forward Contract Using Alibaba Shares
Gain relating to settlement of variable prepaid forward contract using Alibaba shares was recorded. In June 2019, theCompany delivered 73 million American Depositary Shares of Alibaba to the Mandatory Exchangeable Trust (the“Trust”) for the settlement of the variable prepaid forward contract using Alibaba shares. This contract was enteredinto between the Company’s wholly owned subsidiary, West Raptor Holdings, LLC, and the Trust in June 2016 aspart of the Company’s series of transactions monetizing a portion of its Alibaba holding.

I

Loss from Financial Instruments at FVTPL

Loss of ¥488,479 million was recorded due to decreases in the fair value of investments in WeWork held by theCompany’s wholly owned subsidiary. See “Investments in WeWork” below for details.

7SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2020

J Other Non-Operating Loss
The Company recorded provisions for allowance for financial guarantee contract losses and loan commitment lossesof ¥52,349 million and ¥90,210 million, respectively, in connection with (a) credit support by the Company for aletter of credit facility provided by financial institutions and (c) purchase by the Company’s wholly owned subsidiaryof unsecured notes to be issued by WeWork described in “(3) Credit Support and Notes Purchase” under “Investments
in WeWork” below, due to expected credit loss exceeding the initially recognized amount less accumulated amortization.
In March 2020, OneWeb Global Limited (“OneWeb”), an equity method associate of the Company, filed for relief
under Chapter 11 of the United States Bankruptcy Code. As a result, the Company recorded impairment loss onequity method investments of ¥49,198 million for investments made to OneWeb and provisions for doubtful accountsof ¥65,913 million related to the loans made to OneWeb.
See “Investments in WeWork” and “Investments and Loans Made to OneWeb” below for details.

Mainly as a result of B through J, income before income tax decreased ¥1,647,181 million (97.9%) year on
year, to ¥35,492 million.
K Income Taxes
The effective tax rate significantly exceeded the statutory income tax rate in Japan of 31.5%. This was mainly because
deferred tax assets were not recognized for losses at entities in investment business, although income taxes wererecorded at SoftBank Corp. and Yahoo Japan Corporation.

L Net Income from Discontinued Operations
Net loss of Sprint from April 1, 2019 to March 31, 2020 was recorded.

Mainly as a result of B through L, net loss attributable to owners of the parent was ¥961,576 million, deteriorating ¥2,372,775 million year on year.

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

8SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2020

Investments in WeWork
A wholly owned subsidiary of the Company (herein “Investments in WeWork”, the wholly owned subsidiaries of theCompany that invest in WeWork or are parties to contracts with WeWork are collectively referred to as the “WeWork
Investment Subsidiary”) has invested in WeWork, which operates the co-working “space-as-a-service” business WeWork. Separately, SoftBank Vision Fund has invested in WeWork and its three affiliates—WeWork Greater China
Holding Company B.V. (“WeWork China”), WeWork Asia Holding Company B.V. (“WeWork Asia”), and WeWork
Japan GK (“WeWork Japan”). As of March 31, 2020, the cumulative amount of investments by the WeWork Investment
Subsidiary and SoftBank Vision Fund in WeWork totaled $10.3 billion, with a carrying amount of $2.4 billion.
The Company recognized that the fair value of WeWork’s entire equity decreased to $7.8 billion as of September 30,
2019, reflecting WeWork’s withdrawal of its public offering plan and a significant revision of its business plan, as wellas an agreement between the Company and WeWork on October 22, 2019, taking into account the effect of (1) to (4)below. The fair value of WeWork’s entire equity, calculated using the income approach (discounted cash flow method),was $7.3 billion as of December 31, 2019 and $2.9 billion as of March 31, 2020. The significant decline from December
31, 2019 to March 31, 2020 was due to, in light of the COVID-19 outbreak, (i) a significant reduction in the multiples
used in calculating the terminal value to account for the decline in the share price of comparable peer public companies,and (ii) an increase in the discount rate to account for price changes in WeWork’s publicly traded senior unsecured
notes.
In accordance with a change in WeWork’s corporate governance on October 30, 2019, the Company was given theright to nominate five out of the 10 directors on WeWork’s board of directors (with one of those five designated by
SoftBank Vision Fund). As a result, WeWork became an associate of the Company as of such date.
Details and progress of the agreement between the Company and WeWork dated October 22, 2019 are as follows. (1)to (3) are related to the WeWork Investment Subsidiary and (4) is related to SoftBank Vision Fund.
(1) Exercise Price Reduction of Existing Commitment and Early Payment
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 price from $110.00 per
share to $11.60 per share. Of this advance payment for investment, a $200 million portion was converted into preferredstock 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
The WeWork Investment Subsidiary agreed to commence a tender offer (the “Tender Offer”) worth up to $3 billion topurchase WeWork’s common stock and preferred stock from shareholders of WeWork other than the Company at a
price of $19.19 per share. The Company launched the Tender Offer in November 2019, but as several of the closing
conditions were not satisfied by the deadline of April 1, 2020, the Company withdrew and terminated the Tender Offerat that time.
(3) Credit Support and Notes Purchase
The Company agreed to provide to WeWork (a) credit support for a $1.75 billion letter of credit facility provided byfinancial institutions, and the WeWork Investment Subsidiary agreed to purchase or arrange (b) up to $1.1 billion insenior secured notes and (c) up to $2.2 billion in unsecured notes to be issued by WeWork.

9

SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2020

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 the right ofindemnification against WeWork whenever the Company services such obligations. Regarding (c), the WeWork Investment Subsidiary entered into an agreement with WeWork in December 2019. WeWork has not issued any of theunsecured notes as of March 31, 2020.
With the Company’s entry into the agreements regarding (a) and (c), as consideration, the Company has received
warrants that are exercisable for WeWork preferred stock at an exercise price of $0.01 per share. The warrants havebecome exercisable, after receiving the necessary regulatory approvals; however, as of May 18, 2020, the Company
has not exercised any of the warrants.
Regarding (b), the Company’s obligation to purchase or arrange for purchase such debt ceased to exist upon thetermination of the Tender Offer as it was subject to and conditioned upon the completion of the Tender Offer.
(4) Exchange of WeWork China and WeWork Asia Shares for Preferred Stock of WeWork
Subject to satisfactory negotiations of definitive documentation and satisfaction of certain closing conditions, it wasagreed that all of SoftBank Vision Fund’s interests in WeWork China and WeWork Asia were to be exchanged forpreferred stock of WeWork. The exchange of WeWork Asia shares for WeWork’s preferred stock at $11.60 per share
was completed in April 2020, while as of March 31, 2020, SoftBank Vision Fund and other parties remain in discussions with respect to the exchange of WeWork China shares for WeWork’s preferred stock.
Upon completion of these transactions as contemplated in the agreement between the Company and WeWork dated
October 22, 2019 (except for the Tender Offer that was terminated), the fully diluted economic ownership held by theCompany (including SoftBank Vision Fund) of WeWork is greater than 50%. Since the Company will not hold a majority of voting rights at any general shareholders meeting or board of directors meeting and cannot control WeWork
due to provisions of WeWork’s certificate of incorporation and shareholders agreement, WeWork is not a subsidiary of
the Company. There is no other party acting as the Company’s de facto agent.

The investment in WeWork by the WeWork Investment Subsidiary consists of common stock, preferred stock, and a$1.5 billion paid commitment, the full amount of which was paid on October 30, 2019 with the exercise price lowered
to $11.60 per share. In addition, the Company also owns warrants that are exercisable for preferred stock at an exercise
price of $0.01 per share that it acquired as consideration for the credit support and unsecured notes purchase commitment. The common stock is accounted for using the equity method from October 30, 2019, the date on which WeWork
became an associate of the Company. The preferred stock, advance payment for investment, and warrants that are exercisable for preferred stock at $0.01 per share are measured at fair value, with the change recorded as a gain or loss. See“Investments in WeWork by the WeWork Investment Subsidiary (as of March 31, 2020)” for details.
The (a) credit support for a $1.75 billion letter of credit facility provided by financial institutions to WeWork in “(3)Credit Support and Notes Purchase” above corresponds to a financial guarantee contract and the (c) 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 belowmarket interest rate (“loan commitment”). Upon the execution of the contract, for expected credit losses, the Company
recorded allowance for financial guarantee contract losses of $360 million (¥39,107 million) and allowance for loan
commitment losses of $508 million (¥55,088 million) under other financial liabilities (current) in the Consolidated Statement of Financial Position. On March 31, 2020, the expected credit losses for the financial guarantee contract and loan

10SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2020

commitment exceeded the initially recognized amount less accumulated amortization, and the Company therefore recognized provisions for allowance for financial guarantee contract losses and loan commitment losses of $479 million(¥52,349 million) and $826 million (¥90,210 million), respectively. As of March 31, 2020, the Company recorded allowance for financial guarantee contract losses of $819 million (¥89,202 million) and allowance for loan commitment
losses of $1,334 million (¥145,133 million) under other financial liabilities (current) in the Consolidated Statement of
Financial Position.
With respect to SoftBank Vision Fund’s investments in WeWork and its three affiliates—WeWork China, WeWork
Asia, and WeWork Japan—both the common stock and preferred stock continue to be measured at fair value, with thechange to be recorded as a gain or loss. As of March 31, 2020, the cumulative amount of these investments totaled $4.3
billion, with fair value of $0.9 billion.

11SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2020

Investments in WeWork by the WeWork Investment Subsidiary (as of March 31, 2020)

Investment type

CumulaCumulative investtive gain
ment
(loss)
amountAccount in Con- Carrying
solidated Stateamounts atment of Financial the fiscal
Positionyear-end

4,500

Investments(3,663) accounted forusing the equity
methodPreferred stock$1.5 billion paid
Aftercommitment
conversion*3
After(Exercised on October exercise Before
conversion*4
30, 2019 with the exercise price of $11.60
per share, down from
Before exercise
the original $110.00
per share)
Warrants with exercise price of $0.01 per Before exercise
share
Total
Liabilities related to financial guarantee contract
Liabilities related to loan commitment

1,300

823

Gain (loss) from fi62 nancial instruments
at FVTPL(138)
Other financial(894) assets

-

-

(703)

Derivative financial assets
*6

6,000

(5,398)

-

(459)

-

(826)

-

(417)

-

(29)*1(11)*1(40)*1-(78)*2(35)*2(113)*2(2,901)

524

(533)

(3,075)

-

(51)

(87)

(138)

-

(331)

(563)

(894)

(1,011)*5

1,196*5---(155)*6(548)*6(703)*62(4,681)

1,076(1,777)(5,380)---(459)*7(459)*7---(826)*8(826)*8

Breakdownomitted

165*6

Other financial
liabilities
Other financial
liabilities

819
1,334

12

Other non-operating income (loss)
Other non-operating income (loss)

The fiscal
year

Q4

-

- Derivative gain
(loss)

1,470

Q3

(769)

406

Derivative financial liabilities-

Q2

Other non-operating
14 loss

Investment
securities
200

Q1

Loss from financial
instruments at- FVTPL
Loss on equity
method investments

Investment
securities
Common stock

Account in Consolidated Statement of
Income(Millions of U.S. dollars)
Gain (loss) recorded in Consolidated Statement of Income

SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2020

Notes:
1. WeWork became the Company’s associate on October 30, 2019. As a result, net loss of WeWork from October 30, 2019 to March 31, 2020 corresponding to the Company’s holding of common
stock (2.75% as of March 31, 2020; before dilution) was recorded.
2. Indicates the impairment loss recorded due to the significant reduction in fair value of common stock.
3. The $200 million portion of the $1.5 billion paid commitment was converted into preferred stock in November 2019.
4. The $1.3 billion portion of the $1.5 billion paid commitment was paid in advance and later converted into preferred stock in April 2020.
5. The Company recognized a cumulative valuation loss of $1,196 million from the previous fiscal year-end to the second quarter-end, on the warrants held by the WeWork Investment Subsidiary(an unexecuted commitment of $1.5 billion) and recorded it as derivative financial liabilities in the Condensed Interim Consolidated Statement of Financial Position. The Company also recorded
the corresponding derivative loss in the Condensed Interim Consolidated Statement of Income for the six-month period ended September 30, 2019. At the third quarter-end, the entire amount of
the relevant derivative financial liabilities was reversed, following the Company’s payment of $1.5 billion on October 30, 2019 after changing the terms and conditions of that payment obligation.
6. The Company owns warrants that are convertible into preferred stock at an exercise price of $0.01 per share that it acquired as consideration for the credit support and unsecured notes purchasecommitment and recorded the fair value of $868 million of such warrants at the time of the agreements as “derivative financial assets” in the Consolidated Statement of Financial Position. The
Company afterwards recognized derivative loss on warrants with exercise price of $0.01 per share mainly due to markdown of WeWork’s entire equity value from $7.8 billion as of September 30,
2019 to $7.3 billion as of December 31, 2019 and to $2.9 billion as of March 31, 2020.
7. Loss on liabilities related to financial guarantee contract includes a gain of $20 million arising from regular amortization and provisions for allowance for financial guarantee contract losses of$479 million due to expected credit loss exceeding the initially recognized amount less accumulated amortization.
8. The Company recorded provisions for allowance for loan commitment losses due to expected credit loss exceeding the initially recognized amount less accumulated amortization.

Investments in WeWork by SoftBank Vision Fund (as of March 31, 2020)
Cumulative
Cumulative
investment
gain (loss)
amountInvestee

Investment type

WeWorkCommon stock
Preferred stock

3,000

WeWork and its three
affiliates (Total)

Common stock
Preferred stock
Total

Account in Consolidated
Statement of Financial
Position

Carrying
amounts at
the fiscal
year-end

Account in Consolidated Statement of Income

1,250

Investments from SoftBank Vision Fund and(2,477)other SBIA-managed
funds accounted for using(835) FVTPL

Operating income from523 SoftBank Vision Fundand other SBIA-managed funds
415

4,250

(3,312)938

13(Millions of U.S. dollars)
Gain (loss) recorded in Consolidated Statement of Income
The fiscal
Q1
Q2
Q3
Q4
year
(32)

(3,043)40(472)(3,507)

(23)

(395)

(64)

(593)

(1,075)(55)(3,438)(24)(1,065)(4,582)

SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2020

Investments and Loans Made to OneWeb
In March 2020, the communication satellite venture OneWeb, an equity method associate of the Company, filed forrelief under Chapter 11 of the United States Bankruptcy Code. The Company recorded the following losses in relation
to the investments and loans made to OneWeb. As of March 31, 2020, the carrying amount of assets related to theinvestments and loans made to OneWeb is zero.

Types

Common stock
Preferred stock

Loans
Warrants
Loans to OneWeb’sshareholder*1

Cumulative
amount of invest- Account in Consolidated Statement of Income
ments and loans
Income (loss) on equity method investments
Other non-operating income (loss) (Impairment loss
1,000 on equity method investments)
Other non-operating income (loss) (interest income)
Other non-operating income (loss) (provision for
487 doubtful accounts)
426 Gain (loss) from financial instruments at FVTPL
110

Gain (loss) from financial instruments at FVTPL

Total(Millions of U.S. dollars)
Income (loss) record in Consolidated Statement of Income
The previous
The fiscal year
fiscal year
(34)

(67)

(446)
22

(453)
95

67

(604)
(493)

(39)

(71)

2,023
(430)
(1,593)Note:
1. Indicates the loans made by a wholly owned subsidiary of the Company to a shareholders of OneWeb. This shareholders has theoption to repay the debt from the Company’s wholly owned subsidiary in cash or in OneWeb shares it holds.

14

SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2020

b. Results by Segment
The Company’s reportable segments are the components of its business activities for which decisions on resource allocation and assessment of performance are made. In the first quarter, the Company revised its segment classifications afterYahoo Japan Corporation became a subsidiary of SoftBank Corp. There are now four reportable segments: SoftBank
Vision Fund and Other SBIA-Managed Funds, SoftBank, Arm, and Brightstar. Since Sprint is reclassified as a disposalgroup classified as held for sale, the Sprint business is excluded from the reportable segments for the fiscal year.
The “SoftBank Vision Fund and Other SBIA-Managed Funds segment” was renamed from the “SoftBank Vision Fundand Delta Fund segment” in the third quarter due to the establishment of new investment vehicles, which will hold certain
investments that are expected to be treated as the initial investments of “SoftBank Vision Fund 2” (planned), and investments that have been made by such vehicles. The segment includes such vehicles. Delta Fund held no investments as of
the fiscal year-end.
The following is a summary of the reportable segments.
Segments

Main businesses

Core companies

Reportable segments
SoftBank Vision Fund · Investment activities by SoftBank Vision Fundand Other SBIA-Managed Funds

SB Investment Advisers (UK) Limited
SoftBank Vision Fund 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 software services

Arm Limited

Brightstar· Distribution of mobile devices overseas

Brightstar Corp.

· Smartphone payment business

PayPay Corporation· Alternative investment management business

Fortress Investment Group LLC

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

Fukuoka SoftBank HAWKS Corp.

Note: Income of reportable segments is calculated as follows.
SoftBank Vision Fund and Other SBIA-Managed Funds segment:
Segment income = gain and loss on investments at SoftBank Vision Fund and other SBIA-managed funds − operating expenses
Segments other than the SoftBank Vision Fund and Other SBIA-Managed Funds segment:
Segment income = net sales − operating expenses (cost of sales + selling, general and administrative expenses) ± other operating
income and loss, for each segment

For historical principal operational data of each segment, their calculation methods, and definitions of terms, see the Data Sheetsin “Materials” under “Earnings Results Briefing” on the Company’s website athttps://group.softbank/en/ir/presentations/.

15

SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2020(a) SoftBank Vision Fund and Other SBIA-Managed Funds Segment
1. Segment loss was ¥1.9 trillion due to investment loss (net) of ¥1.8 trillion
 SoftBank Vision Fund*1- Unrealized loss on valuation of investments (net) of ¥1.9 trillion from investments held at the fiscal yearend: Fair values of Uber and WeWork and its three affiliates1 decreased, and total fair value of otherportfolio companies decreased significantly in the fourth quarter primarily due to the impact of the
COVID-19 outbreak.
- Realized gain on sales of investments of ¥58.3 billion: sold a portion of four portfolio companies’ shares
and all shares of a portfolio company.
2. Progress of investment and management at SoftBank Vision Fund
 Held 88 investments as of the fiscal year-end at cost totaling $75.0 billion, with fair value amounting to$69.6 billion (excluding exited investments). Cumulative gross realized gains*2 since the fund inception,
including exited investments, have reached $4.8 billion.
 To prepare for the revenue disruption and lack of liquidity of portfolio companies resulting from theoutbreak of COVID-19, SBIA is providing them operational support and guidance on strategy.
Notes:
1. Excludes the investment results of new investment vehicles, which are intended to hold certain investments that are expected to betreated as the initial investments of “SoftBank Vision Fund 2” (planned).
2. Includes gains related to NVIDIA corporation shares recorded under non-operating income and loss, such as derivative gain fromcollar transactions using NVIDIA Corporation shares. Gross realized gains are before deducting third-party interests, tax, andexpenses.
(Millions of yen)

Fiscal year ended March 31
2019
2020

ChangeChange %Gain and loss on investments at SoftBank Vision
Fund and other SBIA-managed funds
Operating expenses

1,302,838 (1,844,867)(46,197)(86,478)(3,147,705)(40,281)87.2%

Segment income

1,256,641(3,187,986)-(1,931,345)

OVERVIEW
The segment results include the results of the investment and operational activities of SoftBank Vision Fund and other
SBIA-managed funds, principally Delta Fund. These 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.
SoftBank Vision Fund began its operation in 2017. The fund aims to maximize returns from a medium- to long-term
perspective, through making large-scale investments in high-growth-potential companies that are leveraging AI, particularly in private companies valued at over $1 billion, colloquially known as “unicorns.” The fund’s investment period
ended on September 12, 2019, but it is expected that the life of the fund will continue through November 20, 2029.
For details on the terms and conditions of distributions to limited partners in SoftBank Vision Fund and Delta Fundand the terms and conditions of management fees and performance fees to SBIA, see “(2) Third-party interests in SoftBank Vision Fund and Delta Fund” and “(3) Management fees and performance fees to SBIA” under “4. SoftBank
Vision Fund and other SBIA-managed funds business” in “(6) Notes to Consolidated Financial Statements” in “4. Consolidated Financial Statements and Primary Notes,” respectively.

16SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2020

Outline of Principal Funds in the Segment
As of March 31, 2020
Major limited partnership
Total committed capital(Billions of U.S. dollars)

SoftBank Vision Fund

Delta Fund

SoftBank Vision Fund L.P.

SB Delta Fund (Jersey) L.P.

98.6

*1

4.4 *1

General partner

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

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

Investment period

Ended on September 12, 2019 *3

Ended on September 12, 2019 *3

Minimum fund life

Until November 20, 2029 (in principle)

Until September 27, 2029 (in principle)

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

17

SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2020

Capital Deployment of SoftBank Vision Fund and Delta FundAs of March 31, 2020
(Billions of U.S. dollars)

Total
Committed capital (A)SoftBank Vision Fund
Delta FundContributions from limited partners3
SoftBank Vision Fund
Delta Fund

Third-party
investors

98.6
4.4

33.1 *1
4.4

65.5
*2
-

78.3
3.8

28.6
3.8 4

49.7
*2
-

(5.5)
(3.5)

(0.9)
(3.5)

(4.6)
*2
-

20.3
0.6

4.5
0.6

15.8
*2
-

(B)

Non-recallable contribution included in (B)SoftBank Vision Fund5
Delta Fund6
Remaining committed capital
SoftBank Vision Fund
Delta Fund

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

18

SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2020

FINANCIAL RESULTS(Millions of yen)

Fiscal year ended March 31
2019
2020
Gain and loss on investments at SoftBank Vision Fundand other SBIA-managed funds
Realized gain and loss on sales of investments
Unrealized gain and loss on valuation of investments
Change in valuation for the fiscal year
Reclassified to realized gain and loss recorded in
the past fiscal year*1
Interest and dividend income from investments
Derivative gain and loss
Effect of foreign exchange translation
Operating expenses
Segment income
Finance cost (interest expenses)
Foreign exchange gain and loss
Derivative gain and loss
Change in third-party interests in SoftBank Vision Fundand other SBIA-managed funds
Other non-operating income and loss
Income before income tax

ChangeChange %1,302,838
296,5311,013,228
1,378,553(1,844,867)
58,340(1,917,694)(1,877,682)(3,147,705)(238,191)(2,930,922)(3,256,235)(80.3%)-(365,325)
4,522(11,443)(46,197)(40,012)
12,848145
1,494(86,478)

325,313
8,326
145
12,937(40,281)184.1%
87.2%

1,256,641(33,141)
68
177,373(1,931,345)(22,459)
321-(3,187,986)
10,682
253(177,373)(32.2%)
372.1%-(586,152)(232)

540,930
1,067

1,127,082
1,299-(1,411,486) (2,226,043)-

814,557

Note:

1. Following the sale of a portion of four portfolio companies’ shares and all shares of a portfolio company in the fiscal
year, the unrealized gain on valuation of investments of ¥40,012 million (net) recorded in the prior fiscal years for
those exited investments were reclassified to “realized gain and loss on sale of investments.”
Segment income
Segment loss was ¥1,931,345 million, compared with income of ¥1,256,641 million in the previous fiscal year. Of this,unrealized loss on valuation of investments from 88 investments held by SoftBank Vision Fund at the fiscal year-end
was ¥1,869,283 million ($17,263 million). This was attributable to a loss of $5,179 million for investment in Uber due
to a decline in its stock price, a loss of $4,582 million for investments in WeWork and its three affiliates (for details, see“Investments in WeWork” under “a. Consolidated Results of Operations”), and a total loss of $7,502 million recorded
for investments in other portfolio companies reflecting a significant decrease in fair value, primarily due to the impactof the COVID-19 outbreak. See table below for details.
(Breakdown of unrealized gain and loss on valuation of investments held by SoftBank Vision Fund at the fiscal year-end)(Millions of U.S. dollars)
Uber
WeWork and its three affiliates
Other portfolio companies

Q1(1,076)
(55)
4,877

Q2
(3,536)(3,438)(1,845)

Q3
(162)
(24)
(1,552)Q4(405)(1,065)(8,982)

The fiscal year
(5,179)(4,582)(7,502)

Total

3,746

(8,819)(1,738)(10,452)(17,263)

For the investments in other portfolio companies, a total valuation loss of $8,982 million was recorded in the fourth
quarter. Following the outbreak of COVID-19 from the beginning of 2020, although the fair values of some portfolio
companies in e-commerce, health care, and other businesses increased as a result of their strong business performance,
many portfolio companies’ fair values decreased because their business activities have been disrupted and outlook for

19SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2020

cash flows has deteriorated due to stagnant economic activity and lockdowns implemented globally. In particular, thetotal fair values of the Consumer sector, the Transportation & Logistics sector (excluding Uber), and the Real Estate &Construction sector (excluding WeWork and its three affiliates) declined by $3,257 million, $2,381 million, and $2,196
million, respectively, and consequently the same amounts were recorded as losses.

(Reference: Changes in fair value of investments held by SoftBank Vision Fund in the fiscal year, U.S. dollar-based)
Comparison between fair values at the fiscal year-end with the initial carrying amounts of the fiscal year, or with theacquisition values of the investments acquired in the fiscal year
Unrealized gain and loss on valuation of investments
Fair value change in the fiscal year

Investments

recorded in the fiscal year

Increase

19$3,473 million

Decrease

50$(20,736) million

No change

19

-

Total

88

$(17,263) million

Realized gain on sales of investments of ¥58,340 million was recorded as a result of the sale of a portion of four
portfolio companies’ shares and all shares of a portfolio company.

For investments in publicly listed companies, quoted prices are used to measure fair value. For investments in privately held companies, recent third-party transactions, market approach, cost approach, and/or income approach are allused in the valuation.
For details on fair value measurement, see “SoftBank Vision Fund Business Model and Accounting Treatment” on the Company’s website at https://group.softbank/system/files/pdf/ir/presentations/2019/investor_20181107_02_en.pdf.

Impact of the COVID-19 outbreak
The stagnation in economic activity, restrictions on social outings, and stock market disruptions in various countries
due to the outbreak of COVID-19, have had, and are expected to continue to have, a significant impact on the businessactivities and fair value measurement of the portfolio companies of SoftBank Vision Fund. While this has had a positive
impact on the operations of some of the portfolio companies in businesses such as e-commerce and health care, it has
disrupted the business activities of many of the portfolio companies and caused a deterioration in their results of operations and, ultimately, the fair value measured in the Company’s consolidated financial statements. The fair value measurement of portfolio companies as of March 31, 2020 was based on current expected company-specific COVID-19
impact, liquidity positions of each company, market conditions and comparables, and increased market volatility.
SBIA has been working closely with SoftBank Vision Fund portfolio companies to help them prepare for further
deterioration in business conditions including a possible decrease in revenue and the deterioration of liquidity, in orderto reduce the adverse effects on their businesses due to the deterioration of the economic situation caused by the pandemic. SBIA has also advised portfolio companies to develop a clear plan for their currently available cash balance inorder to optimize cost structures and create contingency plans and flexibility. SBIA has assessed companies by reference
to their cash reserves and COVID-19 sensitivity based on their sector and business model, and made recommendations

20

SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2020

on (i) cash preservation, (ii) cost reductions, (iii) immediate actions and assessments, (iv) short-term considerations, (v)physical and remote work space management and (vi) identifying available government initiatives. SBIA is committed
to helping the SoftBank Vision Fund portfolio companies get through the crisis and believes many of the companies
will be well-placed to come out of this difficult time stronger.

Portfolio of SoftBank Vision Fund and Delta Fund
SoftBank Vision FundAs of March 31, 2020; excludes exited investments(Billions of U.S. dollars)
SectorConsumerEnterprise
FintechFrontier Tech
Health Tech
Real Estate & Construction
Transportation & Logistics

Number ofinvestments
15
8
11
10
10
11
23

Acquisition cost
11.5
2.3
4.9
10.8
2.5
9.9
33.1

Fair value
12.8
3.4
4.8
10.4
4.8
4.6
28.8

Change
1.3
1.1
(0.1)
(0.4)
2.3
(5.3)
(4.3)

88

75.0

69.6

(5.4)

Total

New investments in the fiscal year
During the fiscal year, SoftBank Vision Fund made investments totaling $15.6 billion, including follow-on investments.
Of these, the investments in ANI Technologies Private Limited (Ola) and WeWork China were purchased from theCompany for $950 million in total, the fair value at the time the Company made its decision to sell. These two investments were initially acquired by the Company in prior years with a total acquisition cost of $696 million.
For a complete list of SoftBank Vision Fund’s portfolio and sector changes for each portfolio company, if any, see the Data
Sheets in “Materials” under “Earnings Results Briefing” on the Company’s website athttps://group.softbank/en/ir/presentations/.

Investments Purchased from the Company
In addition to direct purchase, SoftBank Vision Fund may acquire some investments from the sale of investments
held directly or indirectly by the Company, but only if they are in accordance with the fund’s investment eligibility
criteria. There are two types of investments that could be sold to SoftBank Vision Fund: (A) Investments that wereacquired by the Company on the premise of offering the investment to SoftBank Vision Fund and that were inaccordance with the investment eligibility criteria of the fund at the time of acquisition (“Bridge Investments”) and(B) other investments. Examples of (B) include investments that were made without the premise of offering theinvestment to SoftBank Vision Fund at the time of acquisition, or investments that were made with the premise ofoffering the investment to the fund but were not in accordance with the investment eligibility criteria of the fund at
the time of acquisition and therefore require consent from the limited partners for selling to the fund.
The Company recognizes that the transfer of such investments is agreed at the time when consent from theinvestment committee and other bodies (and certain limited partners if applicable) of SoftBank Vision Fund andapprovals from relevant regulatory authorities are obtained. Sales of such investments are made at the fair value atthe time the Company made its decision in accordance with applicable Company procedures to offer the transfer,with such value being the acquisition cost for SoftBank Vision Fund. These investments are presented as investments

21SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2020of SoftBank Vision Fund in the Company’s consolidated financial statements, once the Company recognizes that thetransfer is agreed.
As for investments transferred during the fiscal year, differences between the carrying amounts at the beginningof the fiscal year (or the acquisition cost during the fiscal year) and the sale values were recorded in non-operating
income in the Company’s Consolidated Statement of Income, while the changes in fair values from the sale values(the acquisition value for SoftBank Vision Fund) were recorded in segment income of the SoftBank Vision Fund andOther SBIA-Managed Funds segment. The sale transactions for the transfer between the Company and SoftBank
Vision Fund have been eliminated as inter-group transactions in the Company’s consolidated financial statements.
Delta Fund
There were no investments held by Delta Fund as of the fiscal year-end.

(b) SoftBank Segment (including former Yahoo Japan Segment)
1. Achieved higher net sales and segment income, driven by steady expansion of telecom service customerbase.
2. SoftBank Corp. made Yahoo Japan Corporation (currently Z Holdings Corporation) a subsidiary in June
2019.
3. Z Holdings Corporation concluded a definitive agreement relating to its business integration with LINE
Corporation in December 2019.
(Millions of yen)

Fiscal year ended March 31
2019
2020
Net sales
Segment income

ChangeChange %4,652,116

4,862,484

210,368

4.5%

859,809923,31463,505

7.4%

Note: The results of the SoftBank segment are presented by retroactively including the results of Yahoo Japan Corporation since April
1, 2018, following Yahoo Japan Corporation becoming a subsidiary of SoftBank Corp.

FINANCIAL RESULTS
Both net sales and segment income increased year on year, driven by steady growth in the telecommunications business,
especially services for retail consumers. Net sales growth was attributable to an increase in telecom service revenue
from services for retail consumers, led by a steady expansion in the customer base. This expansion was demonstrated
by the cumulative number of smartphone subscribers to the three brands—SoftBank, Y!mobile, and LINE MOBILE—
increasing 2,050,000 from the previous fiscal year-end to 24.13 million, and the cumulative number of subscribers to
SoftBank Hikari, a fiber-optic service, increasing 470,000 from the previous fiscal year-end to 6.39 million. Segment
income also increased as a result of increased net sales.
Yahoo Japan Corporation (currently Z Holdings Corporation) became a subsidiary of SoftBank Corp. as of June 27,
2019. Accordingly, the results of the SoftBank segment are presented by retroactively including the results of Yahoo
Japan Corporation since April 1, 2018. Operating income of Z Holdings Corporation in this segment increased 11.8%
year on year. This was mainly due to consolidation of ZOZO, Inc. and an increase in net sales of existing e-commerce
and advertising business.

22SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2020

Consolidation of ZOZO, Inc. by Z Holdings Corporation
On November 13, 2019, Z Holdings Corporation acquired 152,952,900 shares of common shares (50.1% of voting
rights) of ZOZO, Inc., an operator of an online apparel retailer, for ¥400,737 million with the aim of strengthening its
e-commerce business. Accordingly, on the same day ZOZO, Inc. became a subsidiary of the Company, as well as of
SoftBank Corp. and Z Holdings Corporation. The results of the SoftBank segment are presented by including the resultsof ZOZO, Inc. from this date until the fiscal year-end. For details on the consolidation of ZOZO, Inc. see “5. Businesscombinations” under “(6) Notes to Consolidated Financial Statements” in “4. Consolidated Financial Statements andPrimary Notes.”

Business integration of Z Holdings Corporation and LINE Corporation
In December 2019, Z Holdings Corporation and LINE Corporation, along with their respective parent companies SoftBank Corp. and NAVER Corporation, concluded a four-way definitive agreement regarding a business integration (the“Business Integration”) with the aim of forming a world-leading AI technology company based in Japan and Asia. As
part of the transaction to realize the Business Integration, SoftBank Corp. and NAVER Corporation will jointly conduct
a tender offer for the shares of LINE Corporation from May to June 2020. Z Holdings Corporation, as the listed integrated company resulting from the Business Integration, is expected to become a subsidiary of the Company and of
SoftBank Corp. The Business Integration is conditioned on the receipt of required competition law and foreign exchange
law approvals and other clearances and permits required by applicable laws and regulations.

Impact of the COVID-19 outbreak
For SoftBank Corp., a stable trend in telecommunication service subscribers and an increase in data communication
traffic as a result of the “stay at home” policy from the government is expected; however, a decline in shop traffic isalso expected. For enterprise customers, although demand for remote working is expected to increase, there may also
be some negative impact, such as a decrease in face-to-face sales opportunities. In addition, for Z Holdings Corporation,use of e-commerce is expected to increase, while the advertisement sales and use of hotel and restaurant reservation
services are expected to decrease.

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

23

SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2020(c) Arm Segment
1. Net sales increased 2.0% yoy. Segment income decreased substantially yoy, due to a one-time gain in theprevious fiscal year.
 License revenue (U.S. dollar-based) increased 6.4% yoy, driven by delivery of new technologies to customers.
 Technology royalty revenue (U.S. dollar-based) decreased only 1.5% yoy, despite the impact from deteriorationin business condition in the semiconductor industry.
 Segment income decreased yoy, due to a one-time gain of ¥176.3 billion from setting up a joint venture forbusiness in China in the previous fiscal year.
2. Start of season to harvest returns from increasing R&D capacity
 Strong licensing of new technologies continued with six licenses signed in the fourth quarter for processors
not yet announced.
 In the fourth quarter, Arm began delivering multiple new technologies including next generation Arm
processors, triggering bookings from previous quarters to be recognized as revenues.
(Millions of yen)

Fiscal year ended March 31
2020
2019

ChangeChange %Net sales

202,699

206,652

3,953

2.0%

Segment income

133,966(42,819)(176,785)-

Note: Segment income includes amortization expenses of ¥50,544 million for the fiscal year and ¥56,535 million for the previous
fiscal year. These expenses are related to intangible assets recognized in the purchase price allocation at the time of theacquisition of Arm.

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

Industry trend and its impact
Semiconductor industry trends can have a significant impact on Arm’s financial results. Revenue of parts of the semiconductor industry that are most relevant to Arm’s business started to decline in late 2018, and continued to show yearon-year declines from November 20187 until a year-on-year increase of 1.0% was seen in October 2019.7 Despite thisrecent improvement, the industry remains vulnerable to ongoing trade disputes and sanctions against specific companies
and is being exposed to the impact from the outbreak of COVID-19. For the next fiscal year, in the light of the COVID19 outbreak, the shipment of consumer electronic devices may decrease, leading to lower technology royalty revenue,
and semiconductor companies that face reduced revenues may delay licensing decisions, leading to lower technology
licensing revenue. However, it is still early to anticipate the negative impact of the pandemic on the whole semiconductor
industry or Arm.
As market conditions normalize, Arm expects that its business will continue to grow again. 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.

24SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2020

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

2019

Technology
licensingTechnology
royalties
Software andservices
Total net sales

Q1

Q2

Q3

Q4

Total

Q1

Q2

Q3

Q4

Total

ChangeChange %

85

124

125

213

547

125

87

130

240

582

35

6.4%

261

285

305

247

1,098

240

254

312

275

1,081

(17)

(1.5%)

35

47

56

53

191

53

55

63

64

235

44

23.0%

381

456

486

513

1,836

418

396

505

579

1,898

62

3.4%

Net sales increased 3.4% year on year on a U.S. dollar basis. Although the slowdown in the industry resulted in adecrease in royalty revenue, software and services revenue and licensing revenue increased.

Technology licensing
Technology licensing revenue increased 6.4% year on year. This was mainly due to the delivery of some of the newtechnologies to customers during the fourth quarter, for which Arm signed licenses in the fiscal year. These new technologies include new Arm processor products, specifically optimized for different end markets such as smartphones,
servers, and automotive, and a new family of AI accelerators targeting mobile computing and IoT applications. Development of these new technologies was only started after the acquisition of Arm by the Company.
Although Arm signed licenses for some of these new technologies earlier in the fiscal year, revenue associated withthese new technologies is only recognized when the technology is delivered to the customer. Arm was able to deliver
some of these new technologies during the fourth quarter, resulting in record technology licensing revenue for Arm.
During the fiscal year, Arm signed licenses for technologies that are not due to be delivered until next fiscal year or later,
providing an underpin for future technology licensing revenues.
As most of these new technologies are more advanced than existing technologies, there is an opportunity for higher
royalty revenue per chip to boost Arm’s technology royalty revenues for years to come.

Technology royalty
Technology royalty revenue decreased 1.5% year on year. This was mainly due to a deceleration in semiconductor
demand including a weakening in global smartphone demand, combined with a general slowdown in global chip sales.
Technology royalty revenue for the fourth quarter increased 11.3% compared with the same period of the previous fiscal
year due to improving industry conditions and ramping shipment of 5G smartphones.

25

SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2020

Software and services
Software and services revenue increased 23.0% year on year, mainly due to strong growth over the year of Arm’s data
management business, which was created following the acquisition of Treasure Data, Inc. in August 2018.

Segment income
Segment income decreased year on year. This was due to recognizing gain relating to loss of control over subsidiariesof ¥176,261 million in the previous fiscal year, as a result of Arm’s Chinese subsidiary becoming an associate accounted
for using the equity method.
Arm’s head count as of the fiscal year-end increased net 751 people (12.5%) from the previous fiscal year-end. To
maximize ROI, Arm continuously evaluates the mix of R&D projects in which it is investing, as well as the locationsof its engineering teams.

OPERATIONS
Licensing
Licenses signedin the fourth quarter

Cumulative number of licenses signed
as of the fiscal year-end

Classic (Arm7, Arm9, Arm11)

1

451

Cortex-A

14405

Cortex-R-

112

Cortex-M

10

595

Mali

9

204

Number of processor licenses signed

34

1,767

Breakdown by processor family

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

Arm signed 34 processor licenses in the fourth quarter including six licenses for advanced new technologies that Arm
has not yet announced. The customers who signed licenses with Arm in the fourth quarter intend to use Arm technologies
in a very broad range of end markets, including smartphones, networking equipment, and advanced microcontrollers for
IoT devices such as communication chips and sensors embedded in sports equipment.

Royalty Units8
2018

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

Oct 1 toDec 31

Jan 1 toMar 31

Apr 1 toJun 30Jul 1 toSep 30

Oct 1 toDec 31

5.4 billion

4.8 billion

5.6 billion

6.4 billion

6.0 billion(6.9%)(9.4%)

0.2%

3.2%

11.1%

Arm’s licensees reported shipments of 6.0 billion Arm-based chips for the three-month period ended December 31,
2019. Arm’s unit shipments increased 11.1% year on year while shipments by the semiconductor industry as a wholeincreased slightly by 0.6%7 during the same period. However, as mentioned in “Industry trend and its impact” above, it

26

SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2020is likely that fewer chips will be sold next fiscal year than otherwise would be due to the outbreak of COVID-19. Despite
fewer chips being sold, Arm still expects to continue to maintain or gain share in its target end markets.

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

Arm’s primary investment areas and main developments
Mobile Computing
Opportunity:
The first quarter:

The second quarter:

The third quarter:

Infrastructure
Opportunity:

The first quarter:

The third quarter:

The fourth quarter:

Automotive
Opportunity:

The second quarter:

IoT
Opportunity:

The first quarter:

The second quarter:

The fourth quarter:

Arm already has over 95% share of the main chips in mobile devices and, over time, hasbeen successfully increasing royalties per chip.
Arm announced a family of processors which will help provide AI and 5G capabilities tothe next generation of smartphones due in 2020.
Arm announced Total Compute, a new platform approach to develop IP for mobile devices
and consumer electronics, which will deliver higher performance and greater security.
Arm announced new AI processors that are scalable to add AI capability to a wide range ofconsumer devices such as mobile computing and portable gaming devices.
Arm has a growing share in networking infrastructure and a nascent share in data center
servers.
Marvell Technology Group Ltd. and Arm announced a strategic partnership to accelerate
the development of technology needed for cloud companies to deploy Arm-based servers.
· Amazon Web Services Inc. announced that the first generation of Arm Neoverse processors is being used in their own-built Graviton2 server chips, which will be used to replace
the current generations of server systems and show up to 40% cost savings for its customers.
· Supercomputer Fugaku, jointly developed by RIKEN and Fujitsu Limited, has been
awarded first place in the Green500 supercomputer list, a global ranking based on the energy efficiency of supercomputers, with their Arm-based high-performance chip.
Marvell Technology Group Ltd. and Mellanox Technologies, Ltd. announced new familiesof SmartNICs, which offload various tasks from the main server chips in data centers.
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.
Established the Autonomous Vehicle Computing Consortium (AVCC) with partners fromthe automotive industry to create technology standards that will help accelerate the arrivalof self-driving cars.
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.
Samsung Electronics Co., Ltd. and Arm demonstrated a new manufacturing process for IoT
chips.
Arm announced a new feature Arm Custom Instructions. This allows chipmakers to optimize an Arm CPU to increase the performance for specific IoT and other applications.
· Bayer AG announced its usage of smart-label, created in collaboration between Arm andVodafone Group, that uses cellular connected IoT which can strengthen tracking of products through the supply chain.
· Arm announced a new CPU and machine-learning accelerator, bringing AI technology to
IoT devices.

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

27

SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2020(d) Brightstar Segment(Millions of yen)

Fiscal year ended March 31
2019
2020
Net sales
Segment income

ChangeChange %1,082,669

955,415(127,254)(11.8%)(23,396)(5,328)18,068-(e) Other(Millions of yen)

Fiscal year ended March 31
2019
2020

ChangeChange %Net sales

193,742

196,186

2,444

1.3%

Segment income(90,053)(249,549)(159,496)-

Operating loss of ¥82,234 million was recorded at PayPay Corporation, which is engaged in smartphone payment services in Japan. This was mainly due to large-scale marketing promotions aimed at gaining users and driving service
usage, and continued proactive measures to increase the number of stores where its services can be used.
In addition, the investment fund business in Latin America recorded operating loss of ¥62,212 million due to a decrease in the value of investment currencies such as the Brazilian real and a decrease in the fair values of investments.

Results of PayPay Corporation included in the Other segment(Millions of yen)

Fiscal year ended March 31
2019
2020
Net sales
Operating income

ChangeChange %

595

9,159

8,564

-

(36,559)(82,234)(45,675)-28

SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2020

(2) Overview of Financial Position
1. Status of investments
 Carrying amount of investments from SoftBank Vision Fund of ¥6.7 trillion, decreased ¥434.0 billion
from the previous fiscal year-end*1
SoftBank Vision Fund made new investments, while the fair values of Uber, WeWork and its three affiliates1
decreased, and the total fair value of other portfolio companies decreased significantly in the fourth quarter,
primarily due to the impact of the COVID-19 outbreak.
 Carrying amount of investments in WeWork and its affiliates totaling ¥262.0 billion, decreased ¥603.3
billion from the previous fiscal year-end- Carrying amount of investments from a wholly owned subsidiary of the Company of ¥159.9 billion,
decreased ¥115.5 billion from the previous fiscal year-end*2- Carrying amount of investments from SoftBank Vision Fund of ¥102.1 billion, decreased ¥487.8 billion fromthe previous fiscal year-end
2. Sprint business reclassified as a disposal group classified as held for sale, presented separately*3
Assets:Presented as “assets classified as held for sale”
Liabilities:
Presented as “liabilities directly relating to assets classified as held for sale”
Sprint’s interest-bearing debt and lease liabilities totaling ¥4.7 trillion (as of the fiscal yearend) was excluded from consolidated interest-bearing debt and lease liabilities
Equity:Presented as “accumulated other comprehensive income directly relating to assets classified
as held for sale”
3. Financing activities- Wholly owned subsidiaries of the Company conducting fund procurement procured a total of ¥1.1 trillion
using Alibaba and SoftBank Corp. shares.
- SoftBank Vision Fund borrowed $3.65 billion using a portion of its investments (while repaying a portion ofprincipal in the fourth quarter), and borrowed from a line of credit set up mainly to increase the capitalefficiency of its investments.
Notes:
1. Investment in Arm is not included in investments from SoftBank Vision Fund as Arm is a subsidiary of the Company.
2. For details about investments in WeWork, see “Investments in WeWork” under “a. Consolidated Results of Operations” in “(1)Overview of Results of Operations.”
3. For a breakdown of the main items presented in separate categories at the fiscal year-end, see “2. Discontinued operations” under“(6) Notes to Consolidated Financial Statements” in “4. Consolidated Financial Statements and Primary Notes.”(Millions of yen)March 31, 2019

March 31, 2020

ChangeChange %Total assets

36,096,476

37,257,292

1,160,816

3.2%

Total liabilities

27,087,272

29,884,375

2,797,103

10.3%

Total equity

9,009,204

7,372,917(1,636,287)(18.2%)

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

29SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2020(a) Assets(Millions of yen)March 31, 2019

March 31, 2020

ChangeCash and cash equivalents

3,858,518

3,369,015(489,503)

Trade and other receivables

2,339,977

2,072,326(267,651)

Other financial assets

203,476

313,487

110,011Inventories

365,260

185,097(180,163)

A

Other current assets

766,556

460,970(305,586)

B

Assets classified as held for sale

224,201

9,236,048

9,011,847

C

Total current assets

7,757,988

15,636,943

7,878,955

Property, plant and equipment

4,070,704

1,264,516(2,806,188)

D-

1,293,692

1,293,692

E

Goodwill

4,321,467

3,998,167(323,300)

F

Intangible assets

6,892,195

1,985,972(4,906,223)

G

384,076

212,036(172,040)

Investments accounted for using the equity method

2,641,045

3,240,361

599,316H

Investments from SoftBank Vision Fund and other
SBIA-managed funds accounted for using FVTPL

7,115,629

6,892,232(223,397)I

7,115,629

6,681,671(433,958)

Investment securities

924,614

1,211,511

286,897

Other financial assets

1,185,856

1,159,972(25,884)

Deferred tax assets

586,943

221,371(365,572)

Other non-current assets

215,959

140,519(75,440)

Total non-current assets

28,338,488

21,620,349(6,718,139)

Total assets

36,096,476

37,257,292

1,160,816

Right-of-use assets

Costs to obtain contracts

SoftBank Vision Fund and Delta Fund

A

J
K

Reasons for changes by primary component
Components
Current assets
A Trade and other receivables
Inventories

Main reasons for changes from the previous fiscal year-end
At the fiscal year-end, subsequent to the reclassification of the Sprint businessas a disposal group classified as held for sale, Sprint’s trade and other receivables and inventories totaling ¥483,223 million were reclassified as assets classified as held for sale.

B Other current assets

Other current assets were reduced by ¥422,648 million due to a refund of withholding income tax in July 2019 on dividends from SoftBank Group Japan
Corporation (“SBGJ”) to SoftBank Group Corp. in the previous fiscal year.

C Assets classified as held for sale

· Assets classified as held for sale were reduced by ¥224,201 million due to thesettlement in June 2019 of the variable prepaid forward contract using
Alibaba shares concluded in 2016.
· At the fiscal year-end, subsequent to the reclassification of the Sprint businessas a disposal group classified as held for sale, Sprint’s assets totaling¥9,236,048 million were presented separately under this classification.

30

SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2020

Components
Non-current assets
D Property, plant and equipment

Main reasons for changes from the previous fiscal year-end· Due to the adoption of IFRS 16, leased assets of ¥1,157,008 million, previously classified as financing leases and recorded as property, plant and equipment, were reclassified as right-of-use assets at the beginning of the fiscal
year. This was mainly due to leased assets related to telecommunications
equipment for SoftBank Corp. being reclassified as right-of-use assets.
· Telecommunications equipment was regularly depreciated at SoftBank Corp.
· At the fiscal year-end, subsequent to the reclassification of the Sprint businessas a disposal group classified as held for sale, Sprint’s property, plant andequipment of ¥1,890,600 million was reclassified as assets classified as held
for sale.

E Right-of-use assets· Due to the adoption of IFRS 16, right-of-use assets of ¥1,368,144 million
were newly recorded at the beginning of the fiscal year. This was mainly due
to newly recorded right-of-use assets for operating leases related to telecommunications equipment and property at Sprint and SoftBank Corp.
· Leased assets that had been included in property, plant and equipment werereclassified as right-of-use assets.
· At the fiscal year-end, subsequent to the reclassification of the Sprint businessas a disposal group classified as held for sale, Sprint’s right-of-use assets of¥763,529 million were reclassified as assets classified as held for sale.

F Goodwill· Following the consolidation of ZOZO, Inc., goodwill was newly recognizedon the date when control was acquired. For details, see “5. Business combinations” under “(6) Notes to Consolidated Financial Statements” in “4. Consolidated Financial Statements and Primary Notes.”· Arm’s goodwill decreased ¥223,377 million, due to a stronger yen against the
British pound.
· At the fiscal year-end, subsequent to the reclassification of the Sprint businessas a disposal group classified as held for sale, Sprint’s goodwill of ¥322,978
million was reclassified as assets classified as held for sale.

G Intangible assets· Following the consolidation of ZOZO, Inc., intangible assets such as customer relationships and trademarks were newly recognized on the date whencontrol was acquired. For details, see “5. Business combinations” under “(6)Notes to Consolidated Financial Statements” in “4. Consolidated Financial
Statements and Primary Notes.”· At the fiscal year-end, subsequent to the reclassification of the Sprint businessas a disposal group classified as held for sale, Sprint’s intangible assets of¥5,082,956 million were reclassified as assets classified as held for sale.

H Investments accounted for using
the equity method

The consolidated carrying amount of Alibaba increased due to recording income on equity method investments and dilution gain from changes in equity
interest.

I Investments from SoftBank
Vision Fund and other SBIAmanaged funds accounted for using FVTPLSoftBank Vision Fund made investments of $15.6 billion, while the fair valuesof investments in Uber and WeWork and its three affiliates1 decreased and thetotal fair value of other investments decreased significantly during the fourth
quarter, mainly due to the impact of the COVID-19 outbreak. For details, see“(a) SoftBank Vision Fund and Other SBIA-Managed Funds Segment” under“b. Results by Segment” in “(1) Overview of Results of Operations.”

J Investment securities· For details of investments in WeWork, see “Investments in WeWork” under“a. Consolidated Results of Operations” in “(1) Overview of Results of Operations.”· A wholly owned subsidiary of the Company made new investments totaling$1.3 billion as the investment fund business in Latin America.

31

SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2020

Components

Main reasons for changes from the previous fiscal year-end

K Deferred tax assets

As a result of the settlement of the variable prepaid forward contract using
Alibaba shares concluded in 2016, the corresponding deferred tax assets werereversed.

(b) Liabilities(Millions of yen)March 31, 2019

March 31, 2020

Change3,480,960

3,845,153

364,193-378,383

378,383

Deposits for banking business

745,943

873,087

127,144

Third-party interests in SoftBank Vision Fund andother SBIA-managed funds*2

29,677

24,691(4,986)

1,909,608

1,585,326(324,282)

A

Derivative financial liabilities

767,7149,267(758,447)

B

Other financial liabilities

10,849248,010

237,161C

Income taxes payables

534,906

164,298(370,608)

D

Provisions

43,685

11,448(32,237)

1,158,355

596,499(561,856)

E-

6,454,971

6,454,971

F

Total current liabilities

8,681,697

14,191,133

5,509,436Interest-bearing debt*1

12,204,146

9,286,729(2,917,417)-

761,943

761,943

4,107,288

4,559,728

452,440

Derivative financial liabilities

130,545

128,075(2,470)

Other financial liabilities

57,115

77,207

20,092

Provisions

157,478

88,791(68,687)

1,391,072

711,216(679,856)

G

Other non-current liabilities

258,580

79,553(278,378)

H

Total non-current liabilities

18,405,575

15,693,242(2,712,333)

Total liabilities

27,087,272

29,884,375

2,797,103

Interest-bearing debt*1*1

Lease liabilities

Trade and other payables

Other current liabilities
Liabilities directly relating to assets classified asheld for sale*1

Lease liabilities

Third-party interests in SoftBank Vision Fund andother SBIA-managed funds*2

Deferred tax liabilities

Notes:
1. Due to the adoption of IFRS 16, lease liabilities of ¥1,449,326 million, for operating leases that were previously accounted for asleases, were newly recorded at the beginning of the fiscal year. In addition, lease obligations of ¥892,472 million related to financeleases, previously included in interest-bearing debt, were reclassified as lease liabilities.
2. See “(2) Third-party interests in SoftBank Vision Fund and Delta Fund” under “4. SoftBank Vision Fund and other SBIA-managed
funds business” in “(6) Notes to Consolidated Financial Statements” in “4. Consolidated Financial Statements and Primary Notes”
for details.

32SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2020

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

Main reasons for changes from the previous fiscal year-end
At the fiscal year-end, subsequent to the reclassification of the Sprint business as a disposal group classified as held for sale, Sprint’s trade and otherpayables of ¥395,415 million were reclassified as liabilities directly related
to assets classified as held for sale.

B Derivative financial liabilities

Derivative financial liabilities related to the embedded collar transaction in
the variable prepaid forward contract using Alibaba shares concluded in2016 decreased ¥749,846 million, due to settlement of the contract.

C Other financial liabilities

The Company recorded allowance for financial guarantee contract losses andloan commitment losses totaling ¥234,335 million at the fiscal year-end for
expected credit losses for the financial guarantee contract and the loan commitment related to WeWork. For details, see “Investments in WeWork” under “a. Consolidated Results of Operations” in “(1) Overview of Results ofOperations.”

D Income taxes payables

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

E Other current liabilities

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

F Liabilities directly relating toassets classified as held for saleAt the fiscal year-end, subsequent to the reclassification of the Sprint business as a disposal group classified as held for sale, Sprint’s liabilities totaling¥6,454,971 million were presented separately under this classification.

Non-current liabilities
G Deferred tax liabilities· Deferred tax liabilities of ¥148,439 million were recorded at the fiscal yearend for intangible assets that were newly recognized following the consolidation of ZOZO, Inc. on the date when control was acquired .
· At the fiscal year-end, subsequent to the reclassification of the Sprint business as a disposal group classified as held for sale, Sprint’s deferred tax liabilities of ¥746,834 million were reclassified as liabilities directly related toassets classified as held for sale.

H Other non-current liabilities

At the fiscal year-end, subsequent to the reclassification of the Sprint business as a disposal group classified as held for sale, Sprint’s defined benefit
liabilities and other liabilities of ¥209,515 million were reclassified as liabilities directly related to assets classified as held for sale.

33

SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2020

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

March 31, 2020

Change

SoftBank Group Corp. and wholly owned
subsidiaries conducting fund procurement*1

7,445,551

8,247,062

801,511

SoftBank Group Corp.

6,157,798

6,528,733

370,935

Borrowings

1,339,409

1,388,240

48,831

Corporate bonds

4,776,389

5,034,493

258,104

42,000106,000

64,0001,287,753

1,718,329

430,576

557,152

1,522,228

965,076

ward contract
SoftBank Vision Fund and Other SBIA-Managed
Funds segment

730,601

196,101(534,500)

SoftBank Vision Fund

36,571

581,543544,972

Borrowings

OthersWholly owned subsidiaries conducting fundprocurement*1
Borrowings
Financial liabilities relating to variable prepaid for-36,571

581,543544,972

SBIA

-

535

535

Lease liabilities

-

535

535

SoftBank Corp.

3,186,618

3,828,904

642,286

Borrowings

SoftBank segment
2,392,843

2,856,027

463,184

Corporate bonds-

40,00040,000

Lease obligations

786,174-(786,174)-

832,877

832,877

Lease liabilities
Others

7,601

100,000

92,399130,099

839,042

708,943-

463,598

463,598

Corporate bonds

130,000

354,327

224,327

Lease obligations

99

-

(99)

Lease liabilities-

21,117

21,117

Other subsidiaries

184,737

413,127

228,390

273,152

259,802(13,350)-

102,193

102,193

4,428,378-(4,428,378)

15,685,106

14,272,208(1,412,898)

Z Holdings Corporation*2
Borrowings

OthersOther interest-bearing debt
Lease liabilities
A disposal group classified as held for sale
SprintTotal

Notes:
1. Indicates the interest-bearing debts of Skywalk Finance GK, which made borrowings using Alibaba shares, West Raptor Holdings,
LLC, which concluded a variable prepaid forward contract using Alibaba shares, and Moonlight Finance GK (formerly Hinode 1GK), which made borrowings using shares of SoftBank Corp. These interest-bearing debts are non-recourse to SoftBank GroupCorp.
2. Includes the interest-bearing debt and lease liabilities of Yahoo Japan Corporation.

34

SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2020

Reasons for Changes from Previous Fiscal Year-End at Core Companies
SoftBank Group Corp. and wholly owned subsidiaries conducting fund procurement
SoftBank Group Corp.
・SoftBank Group Corp. issued domestic straight corporate bonds totaling ¥1 trillion and redeemed corporate bonds of¥700 billion as part of refinancing corporate bonds maturing in 2019 and 2020 onward.
・SoftBank Group Corp. issued commercial paper in the amount of ¥64.0 billion (net). Interest-bearing debt from thistransaction is included in “Others.”(Wholly owned subsidiaries conducting fund procurement)
Skywalk Finance GK
Skywalk Finance GK conducted additional borrowings of $4.37 billion (¥468,859 million) using Alibaba shares.
West Raptor Holdings, LLC
Financial liabilities related to a variable prepaid forward contract decreased by ¥730,601 million due to the settlementof the variable prepaid forward contract using Alibaba shares concluded in 2016. Financial liabilities relating to a variable prepaid forward contract of ¥196,101 million were recorded at the fiscal year-end following the conclusion of a
new variable prepaid forward contract using Alibaba shares in November 2019.
Moonlight Finance GK (Formerly Hinode 1 GK)
Moonlight Finance GK borrowed ¥500 billion using SoftBank Corp. shares in February 2020.

SoftBank Vision Fund and Other SBIA-Managed Funds segment
・SoftBank Vision Fund borrowed $3.65 billion for the purpose of monetizing a portion of its investments (the “Portfolio
Financing Facility”) in July 2019. In March 2020, in light of current market conditions and the corresponding significant decrease in the market value of the listed shares pledged as collateral for the Portfolio Financing Facility, $1.1
billion was repaid on the Portfolio Financing Facility using funds sourced by a capital call issued to all limited partnersof SoftBank Vision Fund, including the Company. For details, see “10. Interest-bearing debt” under “(6) Notes toConsolidated Financial Statements” in “4. Consolidated Financial Statements and Primary Notes.”
・SoftBank Vision Fund also borrowed from a line of credit set up mainly to increase the capital efficiency to fundinvestments (the “Fund Level Facility”).

SoftBank segment
SoftBank Corp.
・SoftBank Corp. made borrowings to acquire Yahoo Japan Corporation (currently Z Holdings Corporation) shares andto replenish the reduced working capital resulting from this acquisition.
・Domestic straight corporate bonds totaling ¥40 billion were issued.
・Impacts of adopting IFRS 16 at the beginning of the fiscal year
- Lease liabilities of ¥384,103 million were newly recorded for operating leases that were previously accounted for
as leases.
- Finance leases of ¥786,174 million, that were previously included in interest-bearing debt, were reclassified as leaseliabilities.
・Liabilities related to lease transactions of software for telecommunications equipment were previously classified as

35

SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2020lease obligations. Since the Company does not adopt IFRS 16 on leases of intangible assets, those liabilities wererecorded as financial liabilities in borrowings based on IFRS 9, and retrospective adjustments have been made for thebalance of the previous fiscal year-end. Borrowings of ¥218,986 million related to those transactions were included
at the fiscal year-end (¥277,157 million at the previous fiscal year-end).
Z Holdings Corporation
・¥400 billion was borrowed as funds for acquiring ZOZO, Inc. shares.
・Domestic straight corporate bonds totaling ¥230 billion were issued.

A disposal group classified as held for saleAt the fiscal year-end, subsequent to the reclassification of the Sprint business as a disposal group classified as held for
sale, Sprint’s interest-bearing debt and lease liabilities totaling ¥4,709,749 million were reclassified as liabilities directly
related to assets classified as held for sale, and excluded from consolidated interest-bearing debt and lease liabilities.
(c) Equity(Millions of yen)March 31, 2019

March 31, 2020

ChangeCommon stock

238,772

238,772-

Capital surplus

1,467,762

1,490,325

22,563496,876

496,876-

Retained earnings

5,571,285

3,945,820(1,625,465)

B

Treasury stock(443,482)(101,616)

341,866

C

Accumulated other comprehensive income

290,268(362,259)(652,527)

D-

205,695

205,695

E

Total equity attributable to owners of the parent

7,621,481

5,913,613(1,707,868)

Non-controlling interests

1,387,723

1,459,304

71,581

Total equity

9,009,204

7,372,917(1,636,287)

Other equity instruments

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

Reasons for changes by primary component
Components
A Capital surplus

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

B Retained earnings

In addition to net loss attributable to owners of the parent of ¥961,576 million being
recorded, retained earnings were reduced by ¥558,136 million*1 due to the retirement of 55,753,200 shares of treasury stock in June 2019 (5.07% of the total number
of issued shares before the retirement), and by ¥68,752 million due to a dividend
payment. In addition, the cumulative impact of adopting IFRS 16 of ¥13,997 million
was recorded as an increase in retained earnings on April 1, 2019.

36

SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2020

Components
C Treasury stock

Main reasons for changes from the previous fiscal year-end· The Company repurchased 36.71 million of its own shares for ¥384.1 billion in
the previous fiscal year and 19.04 million shares for ¥215.9 billion in the fiscal
year. This is in accordance with a resolution of the Board of Directors on February 6, 2019 to repurchase the Company’s own shares, with a maximum total
repurchase amount of ¥600 billion.
· The Company retired the above mentioned treasury stock in June 2019.
· The Company repurchased 4.72 million of its own shares for ¥16.0 billion in
the fiscal year. This is in accordance with a resolution of the Board of Directors
on March 13, 2020 to repurchase the Company’s own shares, with a maximum
total repurchase amount of ¥500 billion.

D Accumulated other comprehensive income· Exchange differences from the translation of foreign operations, which arise
from translating overseas subsidiaries and associates into yen, decreased¥501,064 million due to a stronger yen against the major currencies.
· At the fiscal year-end, subsequent to the reclassification of the Sprint businessas a disposal group classified as held for sale, Sprint’s accumulated other comprehensive income of ¥205,695 million was reclassified.

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

At the fiscal year-end, subsequent to the reclassification of the Sprint business as
a disposal group classified as held for sale, Sprint’s accumulated other comprehensive income of ¥205,695 million was presented separately under this classification.

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

37SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2020(3) Overview of Cash Flows
1. Investing activities of SoftBank Vision Fund and Delta Fund*1
 Inflows: proceeds from sale of investments of ¥129.8 billion (cash flows from investing activities), proceedsfrom borrowings of ¥1,132.9 billion (cash flows from financing activities), contributions from third-party
investors of ¥1,843.7 billion (cash flows from financing activities)
 Outflows: payments for acquisition of investments of ¥1,597.0 billion (cash flows from investing activities),
repayment of borrowings of ¥594.1 billion (cash flows from financing activities), distribution/repayment tothird-party investors of ¥7,713 billion (cash flows from financing activities)
2. Investing and financing activities of the Company
 Invested a total of $3.5 billion in WeWork.
 Enhanced cash on hand: procured ¥648.0 billion using Alibaba shares and ¥500 billion using SoftBank Corp.
shares.
Note:
1. Excludes the cash flows of new investment vehicles, which are intended to hold certain investments that are expected to be treatedas the initial investments of “SoftBank Vision Fund 2” (planned). These investment vehicles made payments of $2.0 billion for
acquisitions of investments during the fiscal year.
(Millions of yen)

Fiscal year ended March 31
2019
2020

ChangeCash flows from operating activities

1,171,864

1,117,879(53,985)

Cash flows from investing activities(2,908,016)(4,286,921)(1,378,905)

Cash flows from financing activities

2,202,291

2,920,863

718,572

Notes:
1. Cash flows from continuing operations and cash flows from discontinued operations are included. For details, see “2. Discontinued
operations” under “(6) Notes to Consolidated Financial Statements” in “4. Consolidated Financial Statements and Primary Notes.”
2. Since lease liabilities were newly recognized for operating leases from the fiscal year due to the adoption of IFRS 16, of the leasing
amount (previously recorded as cash flows from operating activities), payment for interest expenses was recorded in “interest paid
(cash flows from operating activities)” and payment related to repayment of principal of liabilities was recorded in “repayment oflease liabilities (cash flows from financing activities).”(a) Cash Flows from Operating Activities
Cash flows from operating activities decreased mainly due to payment of income tax of ¥321,290 million by SBGJ on
a gain on the sale of SoftBank Corp. shares recorded in the previous fiscal year.
(b) Cash Flows from Investing Activities
Primary components
Components
Outlays for purchase of property, plant andequipment and intangible assets¥(1,232,551) million

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

Payments for acquisition of investments¥(1,098,640) million· A wholly owned subsidiary of the Company acquired preferredstock and common stock of WeWork totaling $2.0 billion in thefirst quarter, and paid $1.5 billion related to the existing commitment of WeWork in October 2019.
· A wholly owned subsidiary of the Company made new investments
totaling $1.3 billion as the investment fund business in Latin America.

Payments for acquisitions of investment by
SoftBank Vision Fund and other SBIAmanaged funds¥(1,816,291) million

SoftBank Vision Fund made investments. The newly established investment vehicles, which will hold certain investments that are expected to be treated as the initial investments of “SoftBank Vision
Fund 2” (planned), made investments of $2.0 billion.

38

SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2020

Components
Proceeds from sale of investments by SoftBank Vision Fund and other SBIA-managed funds¥129,832 million

Primary details
SoftBank Vision Fund sold a portion of four portfolio companies’
shares and all shares of a portfolio company.

Payments for acquisition of control oversubsidiaries¥(388,259) million

Z Holdings Corporation acquired 152,952,900 shares of commonshares (50.1% of voting rights) of ZOZO, Inc. for ¥400,737 million.
The amount of payments for acquisition of control over subsidiaries
was obtained by deducting cash and cash equivalents of ¥22,876 million held by ZOZO, Inc. on the date when control was acquired fromthe acquisition cost.

(c) Cash Flows from Financing Activities
Primary components
Components
Proceeds in short-term interestbearing debt, net¥133,173 million
Proceeds from interest-bearing debt
¥8,601,926 million
Proceeds from borrowings¥7,043,561 million*1

Primary details
SoftBank Group Corp. issued commercial paper in the amount of ¥49.0 billion(net), and SoftBank Corp. in the amount of ¥48.0 billion (net).

· SoftBank Group Corp. made short-term borrowings of ¥1,910.1 billion,
while the Company’s wholly owned subsidiaries, Skywalk Finance GK and
Moonlight Finance GK, borrowed $4.37 billion using Alibaba shares and¥500 billion using SoftBank Corp. shares, respectively.
· SoftBank Vision Fund borrowed $6.81 billion through the Fund Level Facility, which is a form of loan that allows borrowing up to a maximum amountof $3.38 billion. In the fiscal year, SoftBank Vision Fund made several borrowings and repayments under the facility (see “Repayment of borrowings”
below).
· SoftBank Vision Fund borrowed $3.65 billion through the Portfolio Financing Facility in July 2019. In March 2020, in light of current market conditions and the corresponding significant decrease in the market value of thelisted shares pledged as collateral for the Portfolio Financing Facility, $1.1
billion was repaid on the Portfolio Financing Facility using funds sourced bya capital call issued to all limited partners of SoftBank Vision Fund, including the Company. For details, see “10. Interest-bearing debt” under “(6)Notes to Consolidated Financial Statements” in “4. Consolidated Financial
Statements and Primary Notes.”· SoftBank Corp. borrowed ¥150.5 billion to finance the acquisition of Yahoo
Japan Corporation (currently Z Holdings Corporation) shares, and additionally borrowed ¥325.0 billion for the purpose of refinancing the above borrowings into long-term borrowings and other reasons. The company also borrowed ¥857.6 billion through the sale of installment sales receivables and thesale and leaseback of telecommunications equipment.
· Z Holdings Corporation borrowed ¥400 billion to fund its acquisition of
ZOZO, Inc. shares.
· Sprint borrowed $4.7 billion in total through the securitization of receivables
and term loans.

39SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2020

Components
Proceeds from issuance ofbonds¥1,379,220 million

Primary details· SoftBank Group Corp. issued domestic straight corporate bonds totaling¥1 trillion for the purpose of refinancing.
· Z Holdings Corporation issued domestic straight corporate bonds totaling¥230 billion.
· SoftBank Corp. issued domestic straight corporate bonds totaling ¥40 billion.
· Sprint issued straight corporate bonds totaling $1 billion

Proceeds from procurement
relating to settlement ofshares by variable prepaid
forward contract¥179,145 millionWest Raptor Holdings, LLC, the Company’s wholly owned subsidiary, concluded a variable prepaid forward contract using Alibaba shares in November
2019 and received ¥179.1 billion.

Repayment of interest-bearing debt¥(5,646,727) million
Repayment of borrowings¥(4,599,878) million*1· SoftBank Group Corp. repaid short-term borrowings of ¥1,784.8 billion.
· SoftBank Vision Fund repaid $4.06 billion of borrowings under the FundLevel Facility and a total of $1.41 billion of borrowings under the Portfolio
Financing Facility, including the $1.1 billion repaid in March 2020. For details, see “10. Interest-bearing debt” under “(6) Notes to Consolidated Financial Statements” in “4. Consolidated Financial Statements and Primary
Notes.”· SoftBank Corp. and Sprint repaid borrowings.

Redemption of corporate
bonds¥(1,036,765) million· SoftBank Group Corp. redeemed domestic straight corporate bonds of ¥700
billion at maturity.
· Sprint redeemed corporate bonds totaling $3 billion.

Repayment of lease liabilities¥(695,370) million

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

Contributions to SoftBank Vision
Fund and other SBIA-managed
funds from third-party investors¥1,843,660 million

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

Distribution/repayment from SoftBank Vision Fund and other
SBIA-managed funds¥(771,282) million· SoftBank Vision Fund made distributions and repaid the principal for investments to third-party investors totaling $3.3 billion (¥357,302 million) in August 2019, using the proceeds from the Portfolio Financing Facility. Including this, the fund made distributions and principal repayments to third-party
investors totaling ¥611,375 million during the fiscal year.
· Delta Fund made distributions and repaid the principal for investments tothird-party investors totaling ¥159,907 million, mainly by using the proceedsfrom the sale of DiDi shares to SoftBank Vision Fund.

Purchase of treasury stock¥(231,980) million

SoftBank Group Corp. repurchased its own shares in the amount of ¥215.9
billion in the first quarter and ¥16.0 billion in the fourth quarter.

Note:
1. Proceeds from borrowings and repayment of borrowings include proceeds of ¥4,060,150 million and outlays of ¥2,851,336 million,
respectively, related to borrowings with a contracted term of one year or less.

40

SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2020

(Reference) Details of Primary Cash Flows from Investing Activities and Financing Activities of Core Companies
SoftBank Group Corp. and Wholly Owned Subsidiaries Conducting Fund Procurement
SoftBank Group Corp.
Cash flows from financing activities
Proceeds in short-term interestbearing debt, net¥49,000 million

Procured funds through commercial paper.

Proceeds from borrowings¥1,925,050 million

Made borrowings.

Repayment of borrowings¥(1,864,638) million

Repaid borrowings.

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

Issued domestic straight corporate bonds for the purpose of refinancing.

Redemption of bonds¥(700,000) million

Redeemed domestic straight corporate bonds at maturity.

Purchase of treasury stock¥(231,980) million

Repurchased its own shares in the amount of ¥215.9 billion in the firstquarter and ¥16.0 billion in the fourth quarter.

Wholly Owned Subsidiaries Conducting Fund Procurement: Skywalk Finance GK, West Raptor Holdings, LLC,
and Moonlight Finance GK
Cash flows from financing activities
Proceeds from borrowings¥968,859 million

Proceeds from procurement relating
to settlement of shares by variable
prepaid forward contract¥179,145 million· Skywalk Finance GK borrowed $4.37 billion using Alibaba shares.
· Moonlight Finance GK borrowed ¥500 billion using SoftBank Corp.
shares.
In November 2019, West Raptor Holdings, LLC concluded a variable prepaid forward contract for Alibaba shares and received ¥179.1 billion.

SoftBank Vision Fund and Delta Fund*1
Cash flows from investing activities
Payments for acquisition of investments¥(1,596,991) million
Proceeds from sales of investments¥129,832 million

SoftBank Vision Fund made investments.

SoftBank Vision Fund sold a portion of four portfolio companies’ shares
and all shares of a portfolio company.

41

SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2020

Cash flows from financing activities
Proceeds from borrowings¥1,132,873 million· SoftBank Vision Fund borrowed $6.81 billion through the Fund Level
Facility, which is a form of loan that allows borrowing up to a maximum
amount of $3.38 billion. In the fiscal year, SoftBank Vision Fund madeseveral borrowings and repayments under the facility (see “Repayment ofborrowings” below).
· SoftBank Vision Fund borrowed $3.65 billion through the Portfolio Financing Facility in July 2019. In March 2020, in light of current market
conditions and the corresponding significant decrease in the market valueof the listed shares pledged as collateral for the Portfolio Financing Facility, $1.1 billion was repaid on the Portfolio Financing Facility using
funds sourced by a capital call issued to all limited partners of SoftBank
Vision Fund, including the Company. For details, see “10. Interestbearing debt” under “(6) Notes to Consolidated Financial Statements” in“4. Consolidated Financial Statements and Primary Notes.”

Repayment of borrowings¥(594,067) million

SoftBank Vision Fund repaid $4.06 billion for borrowings made throughthe Fund Level Facility. In addition, the fund repaid a total of $1.41 billionof the Portfolio Financing Facility, including $1.1 billion repaid in March
2020. For details, see “10. Interest-bearing debt” under “(6) Notes to Consolidated Financial Statements” in “4. Consolidated Financial Statements
and Primary Notes.”

Contributions from third-party
investors¥1,843,660 million

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

Distribution/repayment to third-party
investors¥(771,282) million· SoftBank Vision Fund made distributions and repaid the principal for investments to third-party investors totaling $3.3 billion (¥357,302 million)
in August 2019 using the proceeds from the Portfolio Financing Facility.
Including this, the fund made distributions and principal repayments tothird-party investors totaling ¥611,375 million during the fiscal year.
· Delta Fund made distributions and repaid the principal for investments tothird-party investors totaling ¥159,907 million, mainly by using the proceeds from the sale of DiDi shares to SoftBank Vision Fund.

Note:
1. Excludes cash flow of the investment vehicles that are to hold certain investments expected to be the initial investment of “SoftBank
Vision Fund 2” (planned).

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

42

SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2020

Notes for “1. Results of Operations”
1 The names of the investments of SoftBank Vision Fund are presented in the order of the size of the investments’ impact on the Company’s financial results, unless otherwise stated.
2 The presentation of finance cost of SoftBank Group Corp. includes the interest expenses on interest-bearing debts of wholly owned
subsidiaries conducting fund procurement, Skywalk Finance GK, West Raptor Holdings, LLC, and Moonlight Finance GK. These
interest-bearing debts are not guaranteed by SoftBank Group Corp., hence, are non-recourse to the company.
3 Contributions from limited partners of SoftBank Vision Fund excludes the amount repaid to limited partners due to investment planchanges and other reasons after the contribution had been made.
4 The Company’s obligation to Delta Fund is offset against the cost of the investment securities in DiDi acquired by the Company andthen sold to Delta Fund.
5 Non-recallable contribution of SoftBank Vision Fund represents the applicable investment principal returned to limited partners using
proceeds from the sale of Flipkart Private Limited shares and the Portfolio Financing Facility.
6 Non-recallable contribution of Delta Fund represents the applicable principal for the investment in DiDi, which was returned to limited
partners after the sale of its shares to SoftBank Vision Fund.
7 World Semiconductor Trade Statistics (WSTS) as of February 2020. Excludes memory and analog chips, which do not contain processor technology. This data is compiled on the basis of data submitted by semiconductor companies participating in the survey.
8This analysis is based on the actual shipments of royalty units (chips incorporating Arm technology) by Arm licensees for the threemonth period ended December 31, 2019, as reported by licensees in royalty reports. Arm’s licensees report their actual shipments ofroyalty units one quarter in arrears, and therefore, the current quarter’s royalty unit analysis is based on chips shipped in the priorquarter. In contrast, royalty revenues are accrued in the same quarter the chips are shipped, based on estimates.

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

43SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2020

3. Notes to Summary Information(1) Changes in Accounting Policies(Changes in accounting policies required by IFRSs)
IFRS 16 “Leases” has been adopted during the three-month period ended June 30, 2019.
The details are described in “Note 1. Significant accounting policies” in “(6) Notes to Consolidated Financial
Statements” under “4. Consolidated Financial Statements and Primary Notes.”(2) Changes in Accounting Estimates(Impairment of assets)
For the fiscal year ended March 31, 2020, the recoverable amount of management contracts was less than the carrying
amount. Subsequently an impairment loss was recorded. The details are described in “Note” in “Note 16. Other
operating loss” in “(6) Notes to Consolidated Financial Statements” under “4. Consolidated Financial Statements andPrimary Notes.”(Impairment loss on equity method investments and allowance for doubtful accounts for financial assets other than tradereceivables)
For the fiscal year ended March 31, 2020, OneWeb Global Limited, an equity method associate of the Company, filed
for relief under Chapter 11 of the United States Bankruptcy Code. As a result, an impairment loss on equity method
investments and provision for allowance for doubtful accounts were recorded. The details are described in “Notes 1” in“Note 22. Other non-operating loss” in “(6) Notes to Consolidated Financial Statements” under “4. Consolidated
Financial Statements and Primary Notes.”(Allowance for loan commitment losses and financial guarantee contract losses)
As of March 31, 2020, expected credit losses for a loan commitment and a financial guarantee contract for WeWork,an equity method associate of the Company, were estimated. As a result, provisions for allowance for loan
commitment losses and financial guarantee contract losses were recorded for the fiscal year ended March 31, 2020.
The details are described in “Notes 2 and 3” in “Note 22. Other non-operating loss” in “(6) Notes to Consolidated
Financial Statements” under “4. Consolidated Financial Statements and Primary Notes.”

44

SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2020

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, except as otherwise
stated or interpreted differently in the context, are as follows:
Company name / Abbreviation

Definition

SoftBank Group Corp.

SoftBank Group Corp. (stand-alone basis)

The Company

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

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

Delta FundSB Delta Fund (Jersey) L.P.

SBIA

SB Investment Advisers (UK) Limited

SprintSprint Corporation

Arm

Arm Limited

Brightstar

Brightstar Global Group Inc.

Fortress

Fortress Investment Group LLC

Alibaba

Alibaba Group Holding Limited

WeWork

The We Company

45

SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2020

From the three-month period ended December 31, 2019, the description of “SoftBank Vision Fund and Delta Fund” presented
in the names of accounts and reportable segment has been changed to “SoftBank Vision Fund and other SBIA-managed funds”
as follows:

Consolidated Statement of Financial Position
Previous

Current

Investments from SoftBank Vision Fund and Delta
Fund accounted for using FVTPL
Third-party interests in SoftBank Vision Fund andDelta Fund

Investments from SoftBank Vision Fund and other
SBIA-managed funds accounted for using FVTPL
Third-party interests in SoftBank Vision Fund andother SBIA-managed funds

Consolidated Statement of Income
Previous

Current

Operating income (excluding income from SoftBank
Vision Fund and Delta Fund)
Operating income from SoftBank Vision Fund andDelta Fund
Change in third-party interests in SoftBank Vision
Fund and Delta Fund

Operating income (excluding income from SoftBank
Vision Fund and other SBIA-managed funds)
Operating income from SoftBank Vision Fund andother SBIA-managed funds
Change in third-party interests in SoftBank Vision
Fund and other SBIA-managed funds

Consolidated Statement of Cash Flows
Previous

Current(Gain) loss on investments at SoftBank Vision Fundand Delta Fund
Change in third-party interests in SoftBank Vision
Fund and Delta FundPayments for acquisition of investments by
SoftBank Vision Fund and Delta Fund
Proceeds from sales of investments by SoftBank
Vision Fund and Delta FundContributions into SoftBank Vision Fund and Delta
Fund from third-party investors(Gain) loss on investments at SoftBank Vision Fundand other SBIA-managed funds
Change in third-party interests in SoftBank Vision
Fund and other SBIA-managed funds
Payments for acquisition of investments by SoftBank
Vision Fund and other SBIA-managed funds
Proceeds from sales of investments by SoftBank
Vision Fund and other SBIA-managed funds
Contributions into SoftBank Vision Fund and other
SBIA-managed funds from third-party investors
Distribution/repayment from SoftBank Vision FundDistribution/repayment from SoftBank Vision Fundand other SBIA-managed funds to third-party
and Delta Fund to third-party investors
investors
Segment information
Previous

SoftBank Vision Fund and Delta Fund segment

Current

SoftBank Vision Fund and Other SBIA-Managed
Funds segment

46SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2020

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

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

47

As of
March 31, 2020

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

3,369,015
2,072,326
313,487
185,097
460,970
6,400,895
9,236,048
15,636,943

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

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

7,115,629

6,892,232

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

1,211,511
1,159,972
221,371
140,519
21,620,349
37,257,292

SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2020

(Millions of yen)

As ofMarch 31, 2019
Liabilities and equity
Current liabilities
Interest-bearing debt
Lease liabilities
Deposits for banking business
Third-party interests in SoftBank Vision Fund and other
SBIA-managed funds
Trade and other payables
Derivative financial liabilities
Other financial liabilities
Income taxes payables
Provisions
Other current liabilities
Subtotal
Liabilities directly relating to assets
classified as held for sale
Total current liabilities
Non-current liabilities
Interest-bearing debt
Lease liabilities
Third-party interests in SoftBank Vision Fund and other
SBIA-managed funds
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

48

As of
March 31, 2020

3,480,960
745,9433,845,153
378,383
873,087

29,677

24,691

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

1,585,326
9,267
248,010
164,298
11,448596,499
7,736,162-

6,454,971

8,681,697

14,191,133

12,204,146-

9,286,729
761,943

4,107,288

4,559,728

130,545
57,115
157,478
1,391,072
357,931
18,405,575
27,087,272

128,075
77,20788,791
711,216
79,553
15,693,242
29,884,375

238,772
1,467,762
496,876
5,571,285(443,482)
290,268
7,621,481

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

205,695

7,621,481

5,913,613

1,387,723
9,009,204
36,096,476

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

SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2020

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

Fiscal year ended
March 31, 2019
Continuing operations1
Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Gain relating to loss of control over subsidiaries
Other operating loss
Operating income (excluding income from SoftBank
Vision Fund and other SBIA-managed funds)
Operating income from SoftBank Vision Fund and other
SBIA-managed funds
Operating income
Finance cost
Income on equity method investments
Dilution gain from changes in equity interest
Foreign exchange gain (loss)
Derivative gain (loss)
Gain relating to settlement of variable prepaid forward
contract using Alibaba shares
Gain (loss) from financial instruments at FVTPL
Change in third-party interests in SoftBank Vision Fundand other SBIA-managed funds
Other non-operating 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 share2
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

49

Fiscal year ended
March 31, 2020

6,093,548(3,567,185)
2,526,363

6,185,093(3,485,042)
2,700,051(1,866,315)(2,024,167)

176,261(19,314)

11,879(121,051)

816,995

566,712

1,256,641(1,931,345)

2,073,636(341,937)
320,101
44,068
10,894
158,423(1,364,633)(300,948)
638,717339,842(11,107)(71,811)-

1,218,527

36,832(668,463)(586,152)

540,930(33,192)
1,682,673(237,023)
1,445,650(285,562)
35,492(797,697)(762,205)

8,968
1,454,618(38,555)(800,760)

1,411,199
1,402,756
8,443
43,41942,894525
1,454,618(961,576)(930,027)(31,549)
160,816
167,822(7,006)(800,760)

630.193.89
634.08(463.29)(15.21)(478.50)624.45
3.82
628.27(470.12)(15.21)(485.33)

SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2020

Notes:
1. Continuing operations and discontinued operations are presented separately for the fiscal year ended March 31, 2020. In order toreflect the change, the presentation has been reclassified similarly for the fiscal year ended March 31, 2019. The details aredescribed in “Note 2. Discontinued operations.”
2. The Company conducted a share split at a ratio of two-for-one effective June 28, 2019. “Basic earnings per share” and “Diluted
earnings per share” are calculated assuming that the share split was conducted at the beginning of the fiscal year ended March 31,
2019.

Consolidated Statement of Comprehensive Income(Millions of yen)

Fiscal year ended
March 31, 2019
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

1,454,618(800,760)(1,204)(3,664)(21,281)(6,245)(4,868)(27,526)

1,145
8,766

(1,502)56,15727,228(521,620)

15,406

4,912

52,545(462,053)

47,677
1,502,295(489,579)(1,290,339)

1,376,061(1,169,573)

126,234(120,766)

1,440,235(1,425,587)

1,330,698(1,329,357)

109,537(96,230)

62,0601,502,295

135,248(1,290,339)

Note:* The details of discontinued operations are described in “Note 2. Discontinued operations.”

50

Fiscal year ended
March 31, 2020

SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2020

(3) Consolidated Statement of Changes in Equity
For the fiscal year ended March 31, 2019
(Millions of yen)

Equity attributable to owners of the parent

As of April 1, 2018
Effect of retrospective
adjustments due to adoption of
new standards*
As of April 1, 2018
(after adjustments)
Comprehensive income
Net income
Other comprehensive
incomeTotal comprehensive income
Transactions with owners andother transactions
Cash dividends
Distribution to owners of other
equity instruments
Transfer of accumulated othercomprehensive income toretained earnings
Purchase and disposal of treasury
stock
Changes from businesscombination
Changes in interestsin subsidiaries
Changes in associates’interests in their subsidiaries
Changes in interests in associates’
capital surplus
Share-based payment transactions
Other
Total transactions with owners
and other transactions
As of March 31, 2019

Commonstock
238,772

Capitalsurplus256,768

Other equity
instruments

496,876

Retainedearnings
3,940,259

Treasurystock(66,458)---

300,615

238,772

256,768

496,876---

Accumulated
othercomprehensive
income317,959

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

242,787

4,240,874(66,458)

260,1315,426,963-

1,411,199--

1,411,199

-

-

-

-

29,03629,036---

1,411,199-

29,036

1,440,235---(47,951)--(47,951)---(31,736)--(31,736)---(1,101)

-

1,101

-

-

739

-

-

(377,024)-(376,285)

-

-

-

-

-

-

-

-

1,164,459

-

-

-

-

1,164,459-

41,579----41,579-(1,832)

-

-

-

-

(1,832)

-

6,049
-

-

-

-

-

6,049
-

-

1,210,994-(80,788)(377,024)

1,101

754,283

238,772

1,467,762

496,876

5,571,285(443,482)

290,268

7,621,481

51

SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2020

(Millions of yen)

As of April 1, 2018
Effect of retrospective
adjustments due to adoption of
new standards*
As of April 1, 2018
(after adjustments)
Comprehensive income
Net income
Other comprehensive
incomeTotal comprehensive income
Transactions with owners andother transactions
Cash dividends
Distribution to owners of other
equity instruments
Transfer of accumulated othercomprehensive income toretained earnings
Purchase and disposal of treasury
stock
Changes from businesscombination
Changes in interestsin subsidiaries
Changes in associates’interests in their subsidiaries
Changes in interests in associates’
capital surplus
Share-based payment transactions
Other
Total transactions with owners
and other transactions
As of March 31, 2019

Noncontrollinginterests
1,088,846

Total equity
6,273,022

21,300264,087

1,110,146

6,537,109

43,4191,454,618

18,64147,67762,0601,502,295(30,907)(78,858)-(31,736)---(376,285)

6,115

6,115

236,191

1,400,650-

41,579-(1,832)

2,414
1,704

8,463
1,704

215,517969,800

1,387,723

9,009,204

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

52

SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2020

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

Equity attributable to owners of the parent

As of April 1, 2019
Effect of retrospective
adjustments due to adoption of
new standards*
As of April 1, 2019
(after adjustments)
Comprehensive income
Net income
Other comprehensive
incomeTotal comprehensive income
Transactions with owners andother transactions
Cash dividends
Distribution to owners of other
equity instruments
Transfer of accumulated othercomprehensive income toretained earnings
Purchase and disposal of treasury
stock
Retirement of treasury stock
Changes 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

Commonstock
238,772

Capitalsurplus1,467,762

Other equity
instruments

496,876

Retainedearnings
5,571,285

Treasurystock(443,482)---

13,997

238,772

1,467,762

496,876---

Accumulated
othercomprehensive
income290,268

Subtotal
7,621,481--

13,997

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)---(558,136)

558,136

-

-

-

-

-

-

-

-

-

-

42,358----42,358-(24,843)

-

-

-

-

(24,843)

-

3,583

-

-

-

-

3,583

-

2,204

-

-

-

-

2,204

-

-

-

-

-

(205,695)(205,695)

-

-

-

-

-

-

-

-

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

53

SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2020

(Millions of yen)

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

As of April 1, 2019
Effect of retrospective adjustments
due to adoption of new
standards*
As of April 1, 2019
(after adjustments)
Comprehensive income
Net income
Other comprehensive
income-Total
7,621,481

Noncontrollinginterests
1,387,723-

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)

Total comprehensive income
Transactions with owners andother transactions
Cash dividends
Distribution to owners of other
equity instruments
Transfer of accumulated othercomprehensive income toretained earnings
Purchase and disposal of treasury
stock
Retirement of treasury stock
Changes 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-(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

As of March 31, 2020

Total equity
9,009,204

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

54

SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2020

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

Fiscal year ended
March 31, 2019
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 subsidiaries(Gain) loss on investments at SoftBank Vision Fund andother SBIA-managed funds
Finance cost
Income on equity method investments
Dilution gain from changes in equity interest
Derivative (gain) loss
Gain relating to settlement of variable prepaid forward
contract using Alibaba shares(Gain) loss from financial instruments at FVTPL
Change in third-party interests in SoftBank Vision Fundand other SBIA-managed funds
Foreign exchange (gain) loss and other non-operating
loss
Income taxes
Increase in trade and other receivables
Increase in inventories
Increase in trade and other payables
Other
SubtotalInterest and dividends received
Interest paid
Income taxes paid
Income taxes refunded
Net cash provided by operating activities

Fiscal year ended
March 31, 2020

1,445,650
8,968
1,454,618
1,694,187(176,261)(762,205)(38,555)(800,760)
2,051,472(11,879)(1,302,838)

1,844,867

633,769(316,794)(44,068)(158,230)

613,483(636,555)(339,842)
66,660-(1,218,527)(38,443)

668,405

586,152(540,930)

243

290,578

236,684

688,704(189,651)(470,686)
108,223
44,660(434,360)
102,839
1,171,864(242,697)(374,722)
88,728276,332
2,423,317
49,688(597,772)(1,201,986)
444,632
1,117,879(1,364,954)(1,232,551)(822,628)
292,582(1,098,640)
283,892(1,576,790)(1,816,291)

428,865

129,832(65,134)
91,016(388,259)
2,506(298,620)(245,070)

344,031

86,449(302,531)(210,379)

47,895

95,134(454,544)(10,583)

752,808
19,988(2,908,016)

693
116,346(4,286,921)

2,061,565
49,966(608,146)

Cash flows from investing activities
Purchase of property, plant and equipment, and intangible
assetsPayments for acquisition of investments
Proceeds from sales/redemption of investments
Payments for acquisition of investments by SoftBank
Vision Fund and other SBIA-managed funds
Proceeds from sales of investments by SoftBank Vision
Fund and other SBIA-managed funds
Payments for acquisition of control over subsidiaries
Proceeds from loss of control over subsidiaries
Payments for acquisition of marketable securities for
short-term trading
Proceeds from sales/redemption of marketable securities
for short-term trading
Payments for loan receivables
Collection of loan receivables
Payments into time deposits
Proceeds from withdrawal of time deposits
Other
Net cash used in investing activities

55

SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2020

(Millions of yen)

Fiscal year ended
March 31, 2019
Cash flows from financing activities
Proceeds in short-term interest-bearing debt, net

Fiscal year ended
March 31, 2020

(65,411)

133,173

6,189,112(7,128,379)

8,601,926(5,646,727)-(695,370)

2,133,682

1,843,660(486,388)(771,282)

2,350,262

435(229,818)(82,932)(31,736)(31,071)(384,102)(231,980)

Cash dividends paid

(47,918)(68,659)

Cash dividends paid to non-controlling interests(30,901)(156,999)

Other(66,112)

26,6892,202,291

2,920,863

57,729(342)-(240,982)

523,868(489,503)

Cash and cash equivalents at the beginning of the year

3,334,650

3,858,518

Cash and cash equivalents at the end of the year

3,858,518

3,369,015

Proceeds from interest-bearing debt
Repayment of interest-bearing debt
Repayment of lease liabilities
Contributions into SoftBank Vision Fund and other
SBIA-managed funds from third-party investors
Distribution/repayment from SoftBank Vision Fund andother SBIA-managed funds to third-party investors
Proceeds from the partial sales of shares of subsidiaries tonon-controlling interests
Purchase of shares of subsidiaries from non-controllinginterests
Distribution to owners of other equity instruments
Purchase of treasury stock

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

Note:* Cash flows from continuing operations and cash flows from discontinued operations are included. The details are describedin “Note 2. Discontinued operations.”

56

SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2020

(5) Significant Doubt about Going Concern Assumption
There are no applicable items.
(6) Notes to Consolidated Financial Statements
1. Significant accounting policies(1) Adoption of new standards and interpretations
The Company has adopted the following standards during the three-month period ended June 30, 2019.
Standard/interpretation

IFRS 16

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

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

57

SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2020

for a period of time in exchange for consideration. If the following conditions are met, the Company deems thatthe contract conveys the right to control the use of an identified asset.
i. The use of the identified asset is specified in a contract and the lessor does not have the right to substitute theasset.
ii. Throughout the period of use, the lessee has the right to obtain substantially all of the economic benefits fromuse of the identified asset.
iii. The lessee has the right to direct the use of the identified asset. Where the relevant decisions about how and forwhat purpose the asset is used are predetermined, the lessee is deemed to have the right to direct the use of theidentified asset if:
・the lessee has the right to operate the asset; or・the lessee designed the asset in a way that predetermines how and for what purpose the asset will be used.
(b) Lease term
The lease term is determined as the non-cancellable period of a lease, together with both:・periods covered by an option to extend the lease if the lessee is reasonably certain to exercise that option; and・periods covered by an option to terminate the lease if the lessee is reasonably certain not to exercise that option.
b. Lessee(a) Separating components of a contract
For a contract that is, or contains, a lease, the Company accounts for each lease component within the contract asa lease separately from non-lease components of the contract by allocating the consideration in the contract toeach lease component on the basis of the relative stand-alone price of the lease component and the aggregate
stand-alone price of the non-lease components.
(b) Lease transactions of intangible assets
The Company does not apply IFRS 16 to leases of intangible assets.
(c) Right-of-use asset
At the commencement date, the Company recognizes a right-of-use asset and a lease liability. The right-of-use
asset is initially measured at cost. The cost of the right-of-use asset comprises: the amount of the initial
measurement of the lease liability; any lease payments made at or before the commencement date; any initial
direct costs; and an estimate of costs to be incurred in dismantling and removing the underlying asset, restoring
the site on which it is located or restoring the underlying asset; less any lease incentives received.
After the initial measurement, the right-of-use asset is depreciated on a straight-line basis: (a) over the estimateduseful life if the transfer of ownership of the underlying asset is certain; or (b) over the shorter of the lease term or
the estimated useful life of the leased asset if the transfer of ownership is not certain. The estimated useful life of
the right-of-use asset is determined by the same method applied to property, plant and equipment. As a result of
the adoption of IFRS 16, favorable lease contracts that were previously recognized as intangible assets, except for
those related to FCC licenses, have been reclassified to the right-of-use assets, and related items in othernon-current liabilities as well as onerous lease contracts that were previously recognized as other current
liabilities are deducted from the right-of-use assets. Further, if the right-of-use asset is impaired, an impairment
loss is deducted from the carrying amount of the right-of-use asset.
(d) Lease liability
At the commencement date, the Company measures the lease liability at the present value of the lease paymentsthat will be paid over the lease term after that date. In calculating the present value, the interest rate implicit in thelease is used as a discount rate if that rate can be readily determined. If that rate cannot be readily determined, theCompany’s incremental borrowing rate is used.
The lease payments included in the measurement of the lease liability mainly comprise: fixed payments; lease
payments to be made during extension periods, if the lease term reflects the exercise of an option to extend thelease; and payments of penalties for terminating the lease, if the lease term reflects the exercise of an option toterminate the lease.
After the initial measurement, the lease liability is measured at amortized cost using an effective interest method.
The lease liability is remeasured if there is a change in future lease payments resulting from a change in an index
or a rate, if there is a change in the amounts expected to be payable under a residual value guarantee, or if there isa change in the assessment of the possibility of an option to extend or terminate the lease being exercised.

58SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2020

If the lease liability is remeasured, the carrying amount of the right-of-use asset is also adjusted by the amount of
the remeasurement of the lease liability. However, if the amount of liability reduced by the remeasurement of thelease liability exceeds the carrying amount of the right-of-use asset, any remaining amount of the remeasurement
after reducing the right-of-use asset to zero is recognized in profit or loss.
c. Lessor(a) Separating components of a contract
For a contract that is, or contains, a lease, the Company allocates the consideration in the contract applying IFRS
15 to lease components and non-lease components of the contract.
(b) Classification of leases
At the commencement of a lease contract, the Company classifies whether the contract is a finance lease or an
operating lease. A lease is classified as a finance lease if it transfers substantially all the risks and rewards
incidental to ownership of an underlying asset. Otherwise, a lease is classified as an operating lease. The
Company assesses that substantially all the risks and rewards incidental to ownership of an underlying asset aretransferred in cases where, the lease term is for the major part of the economic life of the underlying asset, or theamount of present value of the lease payments is substantially all the amount of fair value of the asset.
(c) Sublease classification
If the Company is a party to a sublease contract, the Company accounts for the head lease (lessee) and thesublease (lessor) separately. When classifying the sublease as a finance lease or an operating lease, the Company
considers the risks and rewards incidental to, and the useful life of, the right-of-use asset that is recognized by
the Company in the head lease, instead of that of the leased asset.
(d) Recognition and measurement
Lease receivables in finance leases are recorded as the uncollected amount of net lease receivables, as of thedate the lease is determined and through its maturity. Lease receivables are apportioned between financing
income and the repayments of the lease receivables. Lease receivables are measured at amortized cost using theeffective interest method. Interest income based on the effective interest rate is recognized in profit or loss.
Total lease payments received from operating leases received during the lease term are recognized as income ona straight-line basis over the lease term.
(3) Effect of adopting new standards and interpretations
At the initial adoption of IFRS 16, the Company recognized lease liabilities for those lessee’s lease transactions thatwere previously classified as an operating lease under IAS 17. These lease liabilities are measured at the present valueof the lease payments that have not yet been paid at the date of initial adoption of IFRS 16, discounted using theCompany’s incremental borrowing rate at that date. The weighted average incremental borrowing rate applied to leaseliabilities at the initial adoption is 3.15%.
The Company does not apply IFRS 16 to leases of intangible assets and, therefore, restated comparative informationon leases of intangible assets for the fiscal year ended March 31, 2019 in accordance with IAS 8 “Accounting Policies,
Changes in Accounting Estimates and Errors.” As a result, the presentation of the Company’s borrowings for certain
software development has been changed. The details are described in “(1) Components of interest-bearing debt” under“10. Interest-bearing debt.”
Further, before applying IFRS 16, commitments under Sprint’s lease agreements for spectrum licenses held by third
parties were included in the notes for the future minimum lease payments payable under operating leases as they weredeemed to be equivalent to operating leases. These commitments, however, are not included in “Undiscounted future
minimum lease payments payable under operating leases as of March 31, 2019” in the table below because they are
not leases within the scope of IFRS 16. The amount excluded is ¥746,787 million.

59

SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2020

The difference between the future minimum lease payments payable under operating leases as of March 31, 2019
excluding the commitments described above and lease liabilities recognized as of April 1, 2019 is as follows:(Millions of yen)

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

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

As a result of the adoption of IFRS 16, the assets recognized under finance leases as a lessee that were previously
included in property, plant and equipment, are reclassified to right-of-use assets. Lease transactions, which werepreviously classified and accounted for as operating leases, are also recorded as right-of-use assets. As a result, on
April 1, 2019, property, plant and equipment decreased by ¥1,157,008 million and right-of-use assets increased by¥2,525,152 million.
(4) Significant accounting policies for the SoftBank Vision Fund and Other SBIA-Managed Funds segment
For SoftBank Vision Fund and Delta Fund, the Company applies the following accounting policies.
a. Consolidation of SoftBank Vision Fund and Delta Fund by the Company
The funds are limited partnerships established by their respective general partners which are wholly-owned
subsidiaries of the Company, and by their form of organization, qualify as structured entities. The funds areconsolidated by the Company for the following reasons.
The various entities comprising the funds make investment decisions through their respective investment committees,
which were established as committees of SBIA. SBIA is an advisory company and is a wholly-owned subsidiary of
the Company. As such, the Company has power as defined under IFRS 10 “Consolidated Financial Statements” overthe funds. Furthermore, SBIA receives performance fees and the Company receives distributions attributable tolimited partners based on the investment performance as returns from the funds. The Company has the ability to affectthose returns through its power over the funds, and therefore, the Company is deemed to have control as stipulated in
IFRS 10 over the funds.
Inter-company transactions such as management fees and performance fees to SBIA paid or to be paid from the funds
are eliminated in consolidation.
b. Portfolio company investments made by SoftBank Vision Fund and Delta Fund(a) Investments in subsidiaries
Of the portfolio company investments made by the funds, the portfolio companies that the Company is deemed tocontrol under IFRS 10 are subsidiaries of the Company. Accordingly, their results of operations, assets and liabilities
are included in the Company’s consolidated financial statements.
Gain and loss on investments in the subsidiaries of the Company which are recognized in the funds are eliminated inconsolidation.
(b) Investments in associates and joint ventures
Of the portfolio company investments made by the funds, the portfolio companies over which the Company has
significant influence under IAS 28 “Investments in Associates and Joint Ventures” are associates of the Company,
and the portfolio companies that are joint ventures of the funds when, as defined under IFRS 11 “Joint

60

SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2020

Arrangements,” the funds 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 the funds are accounted for as financial
assets at FVTPL in accordance with paragraph 18 of IAS 28, and presented as “Investments from SoftBank Vision
Fund and other SBIA-managed funds accounted for using FVTPL” in the consolidated statement of financial
position. The payments for these investments are presented as “Payments for acquisition of investments by SoftBank
Vision Fund and other SBIA-managed funds” 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 the funds are accounted for as
financial assets at FVTPL. The presentation of these investments in the consolidated statement of financial position
and the consolidated statement of cash flows are the same as the above “(b) Investments in associates and joint
ventures.”c. Presentation of the results from the SoftBank Vision Fund and other SBIA-managed funds business
Income and loss arising from the SoftBank Vision Fund and other SBIA-managed funds business are separated fromoperating income and loss arising from other businesses, recognized as a component of operating income, andpresented as “Operating income from SoftBank Vision Fund and other SBIA-managed funds” in the consolidated
statement of income. Gain and loss arising from “b. Portfolio company investments made by SoftBank Vision Fundand Delta Fund” (realized gain and loss on sales of investments, unrealized gain and loss on valuation of investments,
interest and dividend income from investments, except for gain and loss on investments in subsidiaries) and operating
expenses such as investment research expenses arising from SBIA and administrative expenses arising from each
entity, are included in “Operating income from SoftBank Vision Fund and other SBIA-managed funds.”
d. Bridge Investments
Investments acquired by SoftBank Group Corp. or its subsidiaries with the premise of offering such investments to
SoftBank Vision Fund and were made in accordance with the investment eligibility criteria of SoftBank Vision Fundat the time of acquisition (“Bridge Investments”) are accounted for as financial assets at FVTPL. The Company
recognizes the decision to transfer such investments after the Company obtains consent from the investmentcommittee and other bodies (and certain limited partners, if applicable) at SoftBank Vision Fund and approvals fromrelevant regulatory authorities. The Company changes the presentation of Bridge Investments in its consolidated
financial statements in the annual period in which the Company made the decision to transfer such investments.
If the transfer was agreed from the beginning of the fiscal year to the end of the fiscal year, the Company presents
items relevant to those investments as if SoftBank Vision Fund had made those investments from the beginning of the
fiscal year. Those items would be presented as “Investments from SoftBank Vision Fund and other SBIA-managed
funds accounted for using FVTPL” in the consolidated statement of financial position, “Operating income from
SoftBank Vision Fund and other SBIA-managed funds” in the consolidated statement of income, and “Payments foracquisition of investments by SoftBank Vision Fund and other SBIA-managed funds” under cash flows frominvesting activities in the consolidated statement of cash flows.
On the other hand, if the investments have not yet been agreed to be transferred at the end of the fiscal year, theCompany presents items relevant to those investments as “Investment securities” in the consolidated statement offinancial position, “Gain (loss) from financial instruments at FVTPL” in the consolidated statement of income, and“Payments for acquisition of investments” under cash flows from investing activities in the consolidated statement ofcash flows.
e. Investments that are not Bridge Investments and for which the transfer is agreed
For investments that are not Bridge Investments, if the transfer was agreed from the beginning of the fiscal year to theend of the fiscal year, the Company continues to apply the same accounting treatment followed in the periods prior to
the agreement. They are accounted for as financial assets at FVTPL.
If the transfer was agreed from the beginning of the fiscal year to the end of the fiscal year, the Company presents the
carrying amounts of those investments at the end of the fiscal year as if the investments had been made by SoftBank
Vision Fund on the date the transfer was agreed. Those investments would be presented as “Investments from
SoftBank Vision Fund and other SBIA-managed funds accounted for using FVTPL” in the consolidated statement offinancial position at the end of the fiscal year, the difference between the carrying amount at the beginning of the
fiscal year and the transferred amount and the respective gain and loss on those investments arising from the61SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2020

difference between the transferred amount and fair value at the end of the year as “Gain (loss) from financial
instruments at FVTPL” and “Operating income from SoftBank Vision Fund and other SBIA-managed funds” in the
consolidated statement of income, respectively, and payments for acquisition of such investments as “Payments foracquisition of investments” under cash flows from investing activities in the consolidated statement of cash flows.
f. Contribution from limited partners to SoftBank Vision Fund and Delta FundThe funds issue capital calls to their respective limited partners (“Capital Call”).
(a) Contribution from limited partners other than the Company
The interests attributable to limited partners other than the Company (“Third-Party Investors”) are classified as
financial liabilities, “Third-party interests in SoftBank Vision Fund and other SBIA-managed funds” in the
consolidated statement of financial position, due to the predetermined finite life and contractual payment provision
to each of the limited partners at the end of the finite life within the limited partnership agreements. The liabilities
are classified as “financial liabilities measured at amortized cost” upon initial recognition. The carrying amounts
attributable to Third-Party Investors represent the amounts that would be distributed in accordance with the limited
partnership agreements in a theoretical liquidation scenario at the end of each year.
“Third-party interests in SoftBank Vision Fund and other SBIA-managed funds” fluctuates due to the results of
SoftBank Vision Fund and Delta Fund in addition to contributions from Third-Party Investors in satisfaction of
Capital Call, and distributions and repayments of investments to Third-Party Investors. The fluctuations due to theresults of SoftBank Vision Fund and Delta Fund are presented as “Change in third-party interests in SoftBank
Vision Fund and other SBIA-managed funds” in the consolidated statement of income.
Contributions from Third-Party Investors to SoftBank Vision Fund and Delta Fund are included in “Contributions
into SoftBank Vision Fund and other SBIA-managed funds from third-party investors” under cash flows fromfinancing activities in the consolidated statement of cash flows. The distributions and repayments of investments toThird-Party Investors are included in “Distribution/repayment from SoftBank Vision Fund and other
SBIA-managed funds 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 from the Company as limited partners are eliminated in consolidation.

2. Discontinued operations
As of March 31, 2020, it is highly probable that Sprint will merge with T-Mobile US, Inc. (“T-Mobile”) and will nolonger be a subsidiary of the Company. Accordingly, assets, liabilities, and accumulated other comprehensive
income of Sprint are reclassified as a disposal group classified as held for sale. The disposal group classified as held
for sale is measured at the carrying amount as the fair value of T-Mobile shares which the Company acquires fromthe merger transaction is higher than the carrying amount of Sprint shares. Operating results related to Sprint arepresented separately from continuing operations, as discontinued operations, in the consolidated statement ofincome.
In addition, on April 1, 2020, the merger of Sprint and T-Mobile was completed. As a result, Sprint is no longer a
subsidiary of the Company and the combined company T-Mobile US, Inc. became an equity method associate of theCompany from that date. The details are described in “(1) Completion of merger of Sprint and T-Mobile” under“Note 25. Significant subsequent events.”

62

SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2020

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

As ofMarch 31, 2019

As ofMarch 31, 2020

Assets classified as held for sale
Cash and cash equivalents-

240,982

Trade and other receivables-

385,511

Other financial assets

-

7,166

Inventories-

97,712Other current assets-

131,240

Total current assets-

862,611

Property, plant and equipment-

1,890,600

Right-of-use assets-

763,529

Goodwill-

322,978

Intangible assets-

5,082,956

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

196,438

-

3,049

-

3,225

Other financial assets-

47,140

Other non-current assets-

63,522

Total non-current assets-

8,373,437

Total assets-

9,236,048-

331,881

Lease liabilities-

202,743

Trade and other payables-

395,415

Income taxes payables

-

1,949

Provisions

-

8,720

Other current liabilities-

292,041

Total current liabilities-

1,232,749

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

Interest-bearing debt-

3,591,777

Lease liabilities-

583,348

Derivative financial liabilities

-

5,189

Other financial liabilities

-

4,298

Provisions-

81,261

Deferred tax liabilities-

746,834

Other non-current liabilities-

209,515

Total non-current liabilities-

5,222,222

Total liabilities-

6,454,971

63

SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2020

(Millions of yen)

As ofMarch 31, 2019
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, 2020-

(3,454)-

209,149-

205,695

Fiscal year ended
March 31, 2019
3,508,688

Fiscal year ended
March 31, 2020
3,321,535(2,180,486)(2,131,312)(920,359)(956,029)(2) Results of operations from discontinued operations(Millions of yen)

Net sales
Cost of sales
Selling, general and administrative expenses
Other operating loss

(127,548)(78,346)

Non-operating loss
Income from discontined operations before
income tax
Income taxes(271,666)(303,396)

8,629(147,548)

339

108,993

Net income from discontinued operations

8,968(38,555)

Net income from discontinued operations
Other comprehensive income from discontinued
operations
Comprehensive income from discontinued
operations

8,968(38,555)

117,266(82,211)

126,234(120,766)

Cash flows from operating activities

Fiscal year ended
March 31, 2019593,341

Fiscal year ended
March 31, 2020
641,013

Cash flows from investing activities(526,928)(549,794)

Cash flows from financing activities(51,115)(612,373)

15,298(521,154)(3) Cash flows from discontinued operations(Millions of yen)64

SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2020

3. Segment information(1) Description of reportable segments
The Company’s reportable segments are components of business activities for which discrete financial
information is available, and such information is regularly reviewed by the Company’s Board of Directors inorder to make decisions about the allocation of resources and assess its performance.
For the fiscal year ended March 31, 2019, the Company had six reportable segments, the SoftBank segment, theSprint segment, the Yahoo Japan segment, the Arm segment, the SoftBank Vision Fund and Delta Fund segment,
and the Brightstar segment. However, from the three-month period ended June 30, 2019, in accordance with theconsolidation of Yahoo Japan Corporation by SoftBank Corp., business segments which are regularly reviewed
by the Company’s Board of Directors have been changed. Accordingly, the Company revised its segmentclassifications to the following five reportable segments: the SoftBank Vision Fund and Delta Fund segment, theSoftBank segment, the Sprint segment, the Arm segment, and the Brightstar segment. The “SoftBank Vision
Fund and Delta Fund segment” was renamed to the “SoftBank Vision Fund and Other SBIA-Managed Funds
segment” from the three-month period ended December 31, 2019. In addition, from the three-month period ended
March 31, 2020, Sprint has been classified as discontinued operations as it is highly probable that Sprint will
merge with T-Mobile and will no longer be a subsidiary of the Company. Accordingly, the Sprint segment is
excluded from reportable segments.
As a result, for the fiscal year ended March 31, 2020, the Company has four reportable segments: the SoftBank
Vision Fund and Other SBIA-Managed Funds segment; the SoftBank segment; the Arm segment; and theBrightstar segment.
The SoftBank Vision Fund and Other SBIA-Managed Funds segment conducts, mainly through SoftBank Vision
Fund, investment activities in a wide range of technology sectors. The segment income of the SoftBank Vision
Fund and Other SBIA-Managed Funds segment mainly consists of gain and loss arising from investments
recognized at SoftBank Vision Fund and operating expenses incurred by the funds and SBIA. The gain and loss
mainly arise from investments held by SoftBank Vision Fund including the investment in the Company’s
subsidiary and investments which transfer to SoftBank Vision Fund is agreed (gain and loss on investments at
SoftBank Vision Fund and other SBIA-managed funds)
The SoftBank segment provides, mainly through SoftBank Corp., mobile communications services, sale ofmobile devices, fixed-line telecommunication services such as broadband services in Japan, and through Yahoo
Japan Corporation (currently Z Holdings Corporation), internet advertising and e-commerce business. In addition,
Yahoo Japan Corporation transitioned to a holding company structure on October 1, 2019 and changed its tradename to “Z Holdings Corporation” from “Yahoo Japan Corporation.”
The Arm segment provides, through Arm, designs of microprocessor intellectual property and related technology,
the sale of software tools, and software services.
The Brightstar segment provides, through Brightstar, distribution of mobile devices overseas.
Information on business segments which are not included in the reportable segments is classified in “Other.”“Other” includes mainly PayPay Corporation, Fortress, the investment fund business in Latin America, and the
Fukuoka SoftBank HAWKS-related operations.
“Reconciliations” includes an elimination of intersegment transactions and the corporate general expenses
unallocated to each reportable segment. Expenses arising mainly from SoftBank Group Corp. and SB Group US,
Inc., which manage and supervise investment activities in the internet, communication, and media fields overseas,
are included in corporate general expenses.
Segment information for the fiscal year ended March 31, 2019 is presented based on the reportable segments
after the aforementioned change.

65SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2020

(2) Net sales and income of reportable segments
Income of reportable segments is defined as “Operating income.” Intersegment transaction prices are determined
under the same general business conditions as applied for external customers.
Under the Company’s management system, SoftBank Group Corp., a strategic holding company, exercises
overall control over its investment portfolio comprising the group companies. Based on this system, theCompany focuses on the maximization of shareholder value (calculated as equity value of holdings – net
interest-bearing debt) over the medium to long term, and endeavors to increase the equity value of holdings. As aresult, EBITDA and adjusted EBITDA which were previously described, are not described for the three-month
period ended June 30, 2019 as they are no longer considered as major management indicators provided for
periodic reports to the management.
Income and loss, which is not attributable to operating income and loss, such as financial cost and income andloss on equity method investments, is not managed by each reportable segment and therefore these income andlosses are excluded from segment performance.
Discontinued operations are not included. The details are described in “Note 2. Discontinued operations.”
For the fiscal year ended March 31, 2019

(Millions of yen)

Reportable segments
SoftBank Vision Fundand Other
SBIA-Managed Funds

SoftBank

Arm

Total

Brightstar

Net sales
Customers-

4,626,597

202,616

1,082,669

5,911,882

Intersegment-25,51983-

25,602

Total
Segment income-

4,652,116

202,699

1,082,669

5,937,484

1,256,641

859,809

133,966(23,396)

2,227,02089543,006

66,7305,929

615,754--

176,261-

176,261

Depreciation andamortization
Gain relating to loss ofcontrol over subsidiaries

Other

Reconciliations

Consolidated

Net sales
Customers

181,666-

6,093,548

Intersegment

12,076(37,678)-

Total

193,742(37,678)

6,093,548

Segment income(90,053)(63,331)2,073,636

36,776699

653,229--

176,261

Depreciation andamortization
Gain relating to loss ofcontrol over subsidiaries

66SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2020

For the fiscal year ended March 31, 2020

(Millions of yen)

Reportable segments
SoftBank Vision Fundand Other
SBIA-Managed Funds

SoftBank

Arm

Total

Brightstar

Net sales
Customers-

4,843,657

206,277

955,415Intersegment-

18,827375-

19,202

Total-

4,862,484

206,652

955,415

6,024,551(1,931,345)

923,314(42,819)(5,328)(1,056,178)

402

701,984

74,095

7,442

783,923-

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

Other

Reconciliations

Consolidated

Net sales
Customers

179,744-

Intersegment

16,442(35,644)-

Total

196,186(35,644)

6,185,093

Segment income(249,549)(58,906)(1,364,633)

46,961

1,133

832,017--

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

67

6,185,093

6,005,349

SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2020

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

Fiscal year ended
March 31, 2019
Gain and loss on investments at SoftBank Vision
Fund and other SBIA-managed funds
Realized gain and loss on sales of investments
Unrealized gain and loss on valuation of
investments
Change in valuation for the fiscal year
Reclassified to realized gain and loss recordedin the past fiscal year1
Interest and dividend income from investments
Derivative gain and loss
Effect of foreign exchange translation2
Operating expenses
Operating income from SoftBank Vision Fundand other SBIA-managed funds
Finance cost (interest expenses)
Foreign exchange gain and loss
Derivative gain and loss
Change in third-party interests in SoftBank Vision
Fund and other SBIA-managed funds
Other non-operating income and loss
Income before income tax

Fiscal year ended
March 31, 2020

296,531

58,3401,378,553(1,877,682)(365,325)(40,012)

4,522(11,443)
1,302,838

12,848145
1,494(1,844,867)(46,197)(86,478)

1,256,641(1,931,345)(33,141)(22,459)

68

321

177,373-(586,152)

540,930

(232)

1,067

814,557(1,411,486)

Notes:
1. It represents the unrealized gains and losses on valuation of investments recorded as “Operating income from
SoftBank Vision Fund and other SBIA-managed funds” in the past fiscal years, which are reclassified to realized
gain and loss on sales of investments due to the sales of the shares.
2. Unrealized gains and losses on investments are translated using the average exchange rate for the quarter in which
the gains and losses were recognized, while realized gains and losses on disposal of investments are 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 gains and losses and realized
gains and losses.

68SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2020

(2) Third-party interests in SoftBank Vision Fund and Delta Funda. Terms and conditions of contribution from/ distribution to limited partners
Contributions by the limited partners are classified as “Equity” and “Preferred Equity” depending on the terms andconditions of distribution. Preferred Equity is prioritized over Equity with regard to distribution and return ofcontribution.
Performance-based distributions attributed to limited partners, consisting of the Company and Third-Party Investors,
are calculated using the net proceeds from the investment performance of the funds. Those performance-based
distributions and performance fees attributed to SBIA will be allocated using the method specified in the limited
partnership agreement. The amount of performance-based distribution attributed to limited partners will beallocated to each limited partner based on the proportion of their respective Equity contribution. The amount of
performance-based distributions is paid to each limited partner after the funds receive cash through dividend, or
disposition or monetization of investments.
Fixed distributions are defined as distributions of Preferred Equity holders which are calculated equal to a 7% rate
per annum based on their contributions. The fixed distributions are made every last business day of the months Juneand December.
In the following table, Third-Party Investors contributing Equity are defined as “Investors entitled to performancebased distribution” and Third-Party Investors contributing Preferred Equity are defined as “Investors entitled to
fixed distribution.”b. Changes in interests attributable to Third-Party Investors
Changes in interests attributable to Third-Party Investors (“Third-party interests in SoftBank Vision Fund and other
SBIA-managed funds” 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 and noncurrent liabilities)

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

4,136,965

As of March 31, 2020

4,584,419

1,843,660-

1,843,660(540,930)

540,930-(771,282)-(771,282)(83,994)--

179,778(720,708)

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 SoftBank Vision Fund’s Third-Party Investors as of March 31, 2020 was $15.8
billion.

69

SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2020

(3)

Management fees and performance fees to SBIA
Terms and conditions of management fees and performance fees to SBIA from SoftBank Vision Fund and Delta
Fund, included in income before income tax from the SoftBank Vision Fund and other SBIA-managed funds business,
are as follows.
a. Management fees to SBIAManagement fees to SBIA are, in accordance with the limited partnership agreements, calculated by multiplying
1% per annum by Equity contributions and paid to SBIA by each fund quarterly. A clawback provision is attachedto the management fees received, which is triggered under certain conditions based on future investment
performance.
b. Performance fees to SBIA
Same as the performance-based distributions, the amount of the performance fees to SBIA is calculated using theallocation method as specified in the limited partnership agreements. SBIA is entitled to receive the performancefees when SoftBank Vision Fund and Delta Fund receive cash through disposition, dividend and monetization of
an investment.
During the investment period of SoftBank Vision Fund, payments related to the performance fees to SBIA from
disposition, dividends or monetization of investments were withheld. Instead, in accordance with the limited
partnership agreement, the amount equivalent to the performance fees withheld during the investment period was
temporarily distributed to the limited partners.
After the investment period of SoftBank Vision Fund ended on September 12, 2019, ¥47,943 million ($439 million)of the total amount equivalent to the performance fees temporarily distributed to the limited partners was deductedfrom the return of contributions and performance-based distributions to the limited partners, and fully paid to SBIA
before March 31, 2020.
In addition, the performance fees received are subject to a clawback provision which is triggered under certain
conditions based on future investment performance.

5. 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., asresolved at its Board of Directors meeting held on September 12, 2019. This tender offer was completed on
November 13, 2019, and the Company acquired ZOZO, Inc.’s 152,952,900 common shares in cash for ¥400,737
million. As a result, the Company holds 50.1% of voting rights ratio in ZOZO, Inc., and ZOZO, Inc. became aconsolidated subsidiary of the Company. In addition, in order to procure part of the fund necessary to acquire thetarget shares for this business combination, the Company entered into a borrowing arrangement for ¥400,000 million.

(2) Summary of acquiree
Name
Nature of business

ZOZO, Inc.
Planning/operation of fashion online shopping website “ZOZOTOWN”
Planning/development of private brand “ZOZO”
Customer support, operation of logistics center “ZOZOBASE”

70

SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2020

(3) Acquisition dateNovember 13, 2019(4) Consideration transferred and the component(Millions of yen)

Payment by cashA

Total consideration transferred

Acquisition date(November 13, 2019)400,737
400,737(5) Fair value of assets and liabilities, non-controlling interests and goodwill on the acquisition date(Millions of yen)

Acquisition date(November 13, 2019)22,87630,4437,770
8,610
20,964503,017
13,799Cash and cash equivalents
Trade and other receivables
Other current assets
Property, plant and equipment
Right-of-use assets
Intangible assets1
Other non-current assets
Total assets

607,479

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

22,0003,854
28,362
9,263
16,735150,269
3,420

Total liabilities

233,903

Net assets

B

373,576

Non-controlling interests2

C

185,750
212,9113

A-(B-C)

Goodwill

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.

71SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2020

Notes:
1. Intangible assets
The components of intangible assets are as follows; the estimated useful lives are from 18 to 25 years for customer
relationships.
(Millions of yen)

Acquisition date(November 13, 2019)
Intangible assets with indefinite useful lives
Trademarks
Intangible assets with finite useful lives
Customer relationships
Other

178,720
322,0702,227
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)

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

Acquisition date(November 13, 2019)(400,737)
22,876(377,861)(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 theacquisition 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.

6. Other current assets
The components of other current assets are as follows:
As of March 31, 2020, other current assets of Sprint are reclassified as a disposal group classified as held for sale. The
details are described in “Note 2. Discontinued operations.”(Millions of yen)

As ofMarch 31, 2019
498,026
123,929
113,209
31,392
766,556

Tax receivable*
Prepaid expense
Contract assets
Other
Total

72

As of
March 31, 2020
291,579
77,07765,544
26,770460,970

SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2020

Note:
* Withholding income tax of ¥422,648 million related to dividends within the group companies was refunded in July 2019.
In addition, tax receivable as of March 31, 2020 includes the withholding income tax of ¥167,097 million related todividends within the group companies and ¥78,801 million related to deemed dividends, respectively.

7. Assets classified as held for sale(1) Sprint
As of March 31, 2020, it is highly probable that Sprint will merge with T-Mobile and will no longer be a subsidiary of
the Company. Accordingly, assets of Sprint were transferred to “Assets classified as held for sale.” The details aredescribed in “Note 2. Discontinued operations.”(2) Sale of Alibaba shares by variable prepaid forward contract
Alibaba shares of ¥224,201 million related to the settlement of a variable prepaid forward contract using Alibaba shares
was recorded as of March 31, 2019 and the contract was settled with Alibaba shares on June 3, 2019. The details aredescribed in “Note 20. Gain relating to settlement of variable prepaid forward contract using Alibaba shares.”8. Property, plant and equipment
The components of the carrying amounts of property, plant and equipment are as follows:
As of March 31, 2020, property, plant and equipment of Sprint are reclassified as a disposal group classified as held
for sale. The details are described in “Note 2. Discontinued operations.”(Millions of yen)

As ofMarch 31, 2019
251,786
2,293,388
98,599937,18188,304387,408
14,0384,070,704

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

As of
March 31, 2020
134,032
582,110
118,755
159,92270,964
176,030
22,703
1,264,516

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

73

SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2020

9. Intangible assets
The components of the carrying amounts of intangible assets are as follows:
As of March 31, 2020, intangible assets of Sprint are reclassified as a disposal group classified as held for sale. The
details are described in “Note 2. Discontinued operations.”(Millions of yen)

As ofMarch 31, 2019
Intangible assets with indefinite useful lives
Trademarks*
FCC licenses
Other
Intangible assets with finite useful lives
Software
Customer relationships*
Technologies
Spectrum migration costs
Management contracts
Trademarks
FCC licenses
Favorable lease contracts
Other
Total

As of
March 31, 2020

693,861
4,155,126
12,763

213,754
7,292

739,879
249,028
471,884
159,522
94,72356,726
68,092
13,226
177,365
6,892,195

559,336474,697395,621
148,770
46,197
7,315
132,990
1,985,972

Note:* As a result of the consolidation of ZOZO, Inc. in November 2019, trademarks of ¥178,720 million and customer
relationships of ¥322,070 million were recognized. The details are described in “Note 5. Business combinations.”

74SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2020

10. Interest-bearing debt
(1) Components of interest-bearing debt
The components of interest-bearing debt are as follows:
As of March 31, 2020, interest-bearing debt of Sprint is reclassified as a disposal group classified as held for sale.
The details are described in “Note 2. Discontinued operations.”(Millions of yen)

As ofMarch 31, 2019
Current
Short-term borrowings1,2
Commercial paper
Current portion of long-term borrowings1,3,4
Current portion of corporate bonds
Current portion of installment payables
Current portion of financial liabilities relating to sale ofshares by variable prepaid forward contract5
Current portion of lease obligations6
Total
Non-current
Long-term borrowings1,3,4,7
Corporate bonds
Installment payables
Financial liabilities relating to sale of shares by
variable prepaid forward contract8
Lease obligations6
Total

As of
March 31, 2020

499,179
42,000820,899
1,042,253
11,511

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

730,601-

334,5173,480,960

3,845,153

5,102,091
6,538,785
5,315

3,821,473
5,268,883
272-

196,101

557,955
12,204,146

9,286,729

Notes:
1. The short-term borrowings, current portion of long-term borrowings, and long-term borrowings as of March 31, 2020
include ¥408,465 million (¥36,571 million as of March 31, 2019), ¥10,883 million, and ¥162,195 million of borrowings
in SoftBank Vision Fund, respectively.
2. The increases in short-term borrowings for the fiscal year ended March 31, 2020 are mainly due to increases of ¥463,598
million, ¥371,894 million, and ¥128,372 million in Z Holdings Corporation, SoftBank Vision Fund, and SoftBank Corp.,
respectively.
3. In the SoftBank segment, the Company is a party to lease transactions of software mainly in relation totelecommunications equipment. The Company has not applied IFRS 16 to leases of intangible assets. Accordingly,
liabilities associated with the aforementioned transactions that were previously recognized as lease obligations are, after
applying IFRS 16, accounted for as financial liabilities under IFRS 9 and are included in the current portion of long-termborrowings and long-term borrowings. Consequently, the related amounts as of March 31, 2019 have been restatedaccordingly. The current portion of long-term borrowings and long-term borrowings as of March 31, 2020 include¥89,759 million (¥102,879 million as of March 31, 2019) and ¥143,700 million (¥191,297 million as of March 31, 2019)of borrowings from these transactions, respectively.
4. Certain listed shares held by SoftBank Vision Fund are pledged as collateral for long-term borrowings. The facility
agreement for the long-term borrowings include a margin call provision, which may be triggered under certain
circumstances such as a significant decrease in the market value of pledged collateral and a mandatory prepayment clauserequiring all or part of the borrowings to be prepaid in certain circumstances. The creditors would be able to enforce
security and dispose of the pledged listed shares if the margin call clause or the mandatory prepayment clause were
triggered and SoftBank Vision Fund did not pay the relevant amounts to creditors when due. The long-term borrowings
are limited-recourse debts.

75

SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2020

In March, 2020, in light of current market conditions, and significant decreases in the market value of the pledged listed
shares, an aggregate amount of ¥102,125 million was partially and voluntarily prepaid by SoftBank Vision Fund. In thesame month, the facility agreement for the borrowings was amended and pursuant to the terms of this amendment,
SoftBank Vision Fund made an additional ¥17,949 million voluntary partial repayment and pledged cash as collateral.
Such cash collateral amount is intended to be applied in April 2020 towards a further voluntary repayment of theoutstanding long-term borrowings.
As a result, ¥849,088 million of the listed shares held by SoftBank Vision Fund and ¥10,883 million of cash (the carrying
amounts of each asset as of March 31, 2020) were pledged as collateral for ¥162,195 million of long-term borrowingsand ¥10,883 million of current portion of long-term borrowings as of March 31, 2020. The aforementioned pledged sharesare included within “Investments from SoftBank Vision Fund and other SBIA-managed funds accounted for using
FVTPL” and the cash collateral is included within “Other financial assets (current) “in the consolidated statement offinancial position as of March 31, 2020.
5. Decrease was made due to the settlement of the variable prepaid forward contract using Alibaba shares. The details aredescribed in “Note 20. Gain relating to settlement of variable prepaid forward contract using Alibaba shares.”
6. As a result of the adoption of IFRS 16, liabilities that were previously recorded as “Lease obligations” are reclassified to“Lease liabilities” and are presented separately in the consolidated statement of financial position.
7. 929,022,669 shares out of 3,182,919,470 shares of SoftBank Corp. held by the Company are pledged as collateral for¥497,356 million of long-term borrowings of Moonlight Finance GK (previously Hinode 1 GK), a wholly-owned
subsidiary of the Company, as of March 31, 2020. The borrowings include an early settlement clause and an early
settlement may be elected by the creditors under certain circumstances such as a significant decrease in the fair value ofpledged SoftBank Corp. shares. The creditors would be able to dispose the asset pledged as collateral upon a circumstance
where the early settlement was demanded and Moonlight Finance GK did not repay the borrowings, accordingly. The
borrowings are non-recourse debts, and therefore, SoftBank Group Corp. will not be responsible for the borrowings.
8. In November, 2019, West Raptor Holdings, LLC (“WRH LLC”), a wholly-owned subsidiary of the Company, enteredinto a variable prepaid forward contract using Alibaba shares with a financial institution and procured ¥179,145 million($1.65 billion). At the settlement dates, which are expected to be October and November, 2021, the number of Alibaba
shares settled by the variable prepaid forward contract is determined by reference to the market price of the shares at thevaluation dates prior to the settlement dates. A cap and a floor are set for the price of shares settled, and the variable
prepaid forward contract is classified as a hybrid financial instrument with embedded derivatives. Embedded derivatives
are measured at fair value and ¥5,009 million is recognized as “Derivative financial assets (non-current)” in the
consolidated statement of financial position as of March 31, 2020.
WRH LLC has the option (“cash settlement option”) to settle the variable prepaid forward contract by either delivering
cash or a combination of cash and Alibaba shares. If WRH LLC elects the cash settlement option, the cash equivalent to
the fair value of the number of shares for the settlement, which is determined by the market price of the shares, will be
paid.
Alibaba shares held by WRH LLC are pledged as collateral. The Company granted the right of use to financial institutions,however can release the collateral by cash settlement at its own discretion. The Company applies the equity method tothese shares and they are included in “Investments accounted for using the equity method” in the consolidated statementof financial position as of March 31, 2020. The carrying amount of Alibaba shares pledged as collateral by the Company
is ¥54,453 million as of March 31, 2020.

76

SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2020

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

Fiscal year ended
March 31, 2019
(7,411)(58,000)(65,411)

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

Fiscal year ended
March 31, 2020
36,17397,000133,173(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)

Proceeds from borrowings
Proceeds from issuance of corporate bonds
Proceeds from procurement relating to settlement ofshares by variable prepaid forward contract*
Proceeds from sale-leaseback of newly acquired
equipment
Total

Fiscal year ended
March 31, 2019
5,080,337
747,744

Fiscal year ended
March 31, 2020
7,043,561
1,379,220-

179,145

361,031-6,189,112

8,601,926

Note:*The amount is procured under the variable prepaid forward contract using Alibaba shares. The details are described in “Notes 8”
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, 2019
(5,627,315)(1,061,732)(18,671)(420,661)(7,128,379)

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

Fiscal year ended
March 31, 2020
(4,599,878)(1,036,765)(10,084)(5,646,727)

11. Derivative financial liabilities (current)
Mainly, it was decreased due to the settlement of a variable prepaid forward contract using Alibaba shares. The details
are described in “Note 20. Gain relating to settlement of variable prepaid forward contract using Alibaba shares.”77SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2020

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

As ofMarch 31, 2019
Allowance for loan commitment losses1

10,84910,849Allowance for financial guarantee contract losses2
Other
Total

As of
March 31, 2020
145,133
96,756
6,121
248,010Notes:
1. Balance as of March 31, 2020 is ¥145,133 million of allowance for loan commitment losses related to acquire unsecured
notes issued by WeWork.
In December 2019, the Company’s wholly owned subsidiary other than SoftBank Vision Fund entered into an agreementwith WeWork in order to acquire up to $2.2 billion in unsecured notes to be issued by WeWork and acquired warrants
as consideration that are convertible into preferred stock at an exercise price of $0.01 per share. WeWork is expected toissue unsecured notes as needed on or after April 2020. The agreement is considered as a loan commitment which provides
loans with interest rates lower than market interest rates. At initial recognition, ¥55,088 million of allowance for loan
commitment losses for expected credit losses was recorded as “other financial liabilities (current)” in the consolidated
statement of financial position. The financial liabilities are measured to be the higher of the amount less accumulated
amortization after the initial recognition or expected credit losses.
As of March 31, 2020, ¥90,210 million of allowance for loan commitment losses was provided as expected credit losses
were higher than the amount less accumulated amortization after the initial recognition. The details are described in “Notes
2” under “Note 22. Other non-operating loss.”
2. As of March 31, 2020, ¥89,202 million of allowance for financial guarantee contract losses related to a credit facility for
WeWork provided by financial institutions is included. In December 2019, the Company entered into an agreement withfinancial institutions to provide WeWork a $1.75 billion credit facility and acquired warrants as consideration that areconvertible into preferred stock at an exercise price of $0.01 per share. The agreement is considered as a financial guarantee
contract. At initial recognition, ¥39,107 million of allowance for financial guarantee contract losses for expected credit
losses was recorded as “other financial liabilities (current)” in the consolidated statement of financial position. The
financial liabilities are measured to be the higher of the amount less accumulated amortization after the initial recognition
or expected credit losses.
As of March 31, 2020, ¥52,349 million of allowance for financial guarantee contract losses was provided as expectedcredit losses were higher than the amount less accumulated amortization after the initial recognition. The details aredescribed in “Notes 3” under “Note 22. Other non-operating loss.”

13. Other current liabilities
The components of other current liabilities are as follows:
As of March 31, 2020, other current liabilities of Sprint are reclassified as a disposal group classified as held for sale.
The details are described in “Note 2. Discontinued operations.”(Millions of yen)

As ofMarch 31, 2019
201,979
252,812428,796
112,090
69,97735,33957,362
1,158,355

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

78

As of
March 31, 2020
163,097
141,454
131,024
66,36932,1644,640
57,751
596,499

SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2020

Note:
* Payment of withholding income tax of ¥422,648 million related to dividends within the group companies was made in
April 2019. In addition, withholding income tax as of March 31, 2020 includes the withholding income tax of ¥122,548
million related to dividends within the group companies.

14. 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, 2019110.99144.98

USD
GBP

As of
March 31, 2020
108.83133.32(2) Average rate for the quarter
For the fiscal year ended March 31, 2019

USD
GBP

Three-month period
endedJune 30, 2018108.71147.54Three-month period
ended
September 30, 2018111.55145.84Three-month period
ended
December 31, 2018112.83144.48(Yen)
Three-month period
ended
March 31, 2019110.46143.99Three-month period
ended
September 30, 2019107.70132.73Three-month period
ended
December 31, 2019108.98139.55(Yen)
Three-month period
ended
March 31, 2020
109.22140.20For the fiscal year ended March 31, 2020

USD
GBP

Three-month period
endedJune 30, 2019110.00140.88

15. Equity(1) Capital surplus
On June 27, 2019, Z Holdings Corporation issued 1,511,478,050 new shares for ¥456.5 billion to SoftBank Corp.
through a third-party allotment (the “Third-Party Allotment”). Z Holdings Corporation also implemented a tender
offer for its own shares from May 9, 2019 to June 5, 2019 (the “Tender Offer”), and SoftBank Group Corp. accepted
the Tender Offer and tendered its holding of common shares of Z Holdings Corporation, held by its wholly-owned
subsidiary SoftBank Group Japan Corporation. As a result, 1,792,819,200 of these shares (equivalent to ¥514.5
billion) were sold to Z Holdings Corporation on June 27, 2019.
As a result of the Third-Party Allotment and the Tender Offer, the ownership percentage in Z Holdings Corporationby the Company has changed from 48.16% (ownership percentage as of March 31, 2019) to 45.52%.
Subsequently, capital surplus increased by ¥91,431 million as “Changes in interests in subsidiary.”

79

SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2020

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

(3) Treasury stock
Changes in treasury stock are as follows:(Thousands of shares)

Fiscal year ended
March 31, 2019
Balance at the beginning of the year

11,162

Fiscal year ended
March 31, 2020
46,8271

36,71333,340Decrease during the year2(1,048)(58,349)

Balance at the end of the year

46,827

21,818

Increase during the year

Notes:
1. For the fiscal year ended March 31, 2020, due to purchases of treasury stock under the resolutions passed at theBoard of Directors meeting held on February 6, 2019, the number of treasury stock increased by 19,044 thousand
shares (amount purchased ¥215,931 million) and at the Board of Directors meeting held on March 13, 2020, thenumber of treasury stock increased by 4,720 thousand shares (amount purchased ¥16,028 million). In addition,
under the resolution passed at the Board of Directors meeting held on May 9, 2019, the Company conducted ashare split at a ratio of two-for-one effective June 28, 2019 and the number of treasury stock increased by 9,573
thousand shares.
2. For the fiscal year ended March 31, 2020, the decrease was made mainly under the resolution passed at the Boardof Directors meeting held on May 30, 2019, the Company retired its treasury stock of 55,753 thousand shares onJune 10, 2019. As a result of the transaction, retaining earnings and treasury stock decreased by ¥558,136 million,
respectively.

(4) Accumulated other comprehensive income
The components of accumulated other comprehensive income are as follows:
As of March 31, 2020, accumulated other comprehensive income of Sprint is reclassified as a disposal groupclassified as held for sale. The details are described in “Note 2. Discontinued operations.”(Millions of yen)

As ofMarch 31, 2019
6,661

As of
March 31, 2020
5,115

Debt financial assets at FVTOCI

267

580

Cash flow hedges
Exchange differences on translating
foreign operations(45,791)

13,128329,131(381,082)

290,268(362,259)

Equity financial assets at FVTOCI

Total

80

SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2020

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

Fiscal year ended
March 31, 2019
SoftBank segment
Impairment loss on assets
Gain from remeasurement relating to businesscombination
Other
Other
Loss relating to investment fund business in
Latin America
Impairment loss on assets*
Loss on equity method investments at Fortress
Loss on liquidation of a subsidiary
Other
Total

Fiscal year ended
March 31, 2020

(6,669)(3,404)

3,751

-

(81)

-

-

(62,212)(1,473)(14,842)-(46,044)(14,442)
5,051(19,314)(121,051)

Note:* Mainly, for the fiscal year ended March 31, 2020, ¥25,710 million of impairment loss was recognized because therecoverable amounts of management contracts were less than the carrying amounts.

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

Fiscal year ended
March 31, 2019
Interest expenses

Fiscal year ended
March 31, 2020

(341,937)(300,948)

18. Income on equity method investments
For the fiscal year ended March 31, 2020
Alibaba received newly-issued share (a 33% equity interest) of Ant Small and Micro Finance Services Group Co.,
Ltd. (“Ant Financial”) in September 2019, pursuant to the 2014 share and asset purchase agreement, as amended,among Alibaba, Ant Financial, and others. The consideration paid by Alibaba to receive the newly-issued 33% equity
interest in Ant Financial was funded by payments from Ant Financial and its subsidiaries to Alibaba in consideration
for certain intellectual property rights and assets held by Alibaba. Following this, Alibaba recorded a gain of CNY
71.6 billion, which was the result from the transfer of such intellectual property rights and assets to Ant Financial andthe basis difference determined based on Alibaba’s share of Ant Financial’s net assets, net of its corresponding
deferred tax effect.
As a result, the Company recognized ¥286,473 million of income on equity method investments.

19. Dilution gain from changes in equity interest
For the fiscal year ended March 31, 2020
Alibaba issued new shares, in connection with its listing on The Stock Exchange of Hong Kong Limited on November
26, 2019. Accordingly, the Company recorded ¥291,551 million of dilution gain from changes in equity interest related
to Alibaba.

81SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2020

20. Gain relating to settlement of variable prepaid forward contract using Alibaba shares
On June 3, 2019, a variable prepaid forward contract, which WRH LLC, a wholly-owned subsidiary of the Company,
entered into with Mandatory Exchangeable Trust (the “Trust”) in June 2016, in order to sell Alibaba shares, was settled
by 73,240,200 shares of Alibaba (equivalent to 2.8% of voting right of Alibaba as of March 31, 2019). Subsequently,¥1,218,527 million of gain relating to settlement of variable prepaid forward contract using Alibaba shares wasrecorded for the fiscal year ended March 31, 2020.
Alibaba shares held by WRH LLC were pledged as collateral under the variable prepaid forward contract andsubsequently, the relevant collateral contract was terminated. Alibaba shares pledged as collateral were recorded as“Assets classified as held for sale” of ¥224,201 million and “Investments accounted for using the equity method” of¥39,256 million, were included in the consolidated statement of financial position as of March 31, 2019.
The details of the variable prepaid forward contract are as follows.
WRH LLC entered into the variable prepaid forward contract on June 10, 2016, and received proceeds of ¥578,436
million ($5.4 billion) as advances received on the sale.
The Trust, on the other hand, utilized Alibaba shares scheduled to be transferred from WRH LLC at the time ofsettlement under the contract and issued $6.6 billion of Mandatory Exchangeable Trust Securities (“Trust Securities”)
which are mandatorily exchangeable into American Depositary Shares (“ADSs”) of Alibaba. The proceeds from thesale received by WRH LLC from the Trust was $5.4 billion, which is after certain amounts from the $6.6 billion totalof Trust Securities were deducted in order to purchase U.S. Treasury securities, which would fund distributions on
the Trust Securities, and cover expenses for the issuance of the Trust Securities.
The settlement of the Alibaba shares based on the variable prepaid forward contract is conducted concurrently withthe exchange of Trust Securities. At the exchange date (June 3, 2019), Trust Securities are exchanged for a certain
number of ADSs, determined by reference to the trading price of the ADSs at that time, and the number of Alibaba
shares sold by the variable prepaid forward contract is determined by this number of ADSs. A cap and a floor are set
for the number of shares settled, and the variable prepaid forward contract is classified as a hybrid financial instrumentwith embedded derivatives of a collar transaction.
The Company accounts for the variable prepaid forward contract by bifurcating the main contracts and embedded
derivatives. The Company received ¥578,436 million and initially recognized ¥674,023 million as financial liabilities
relating to the sale of shares through the variable prepaid forward contract and ¥95,587 million as derivative assets.
Subsequent to initial recognition, financial liabilities relating to the sale of shares through the variable prepaid forward
contract were measured at amortized cost and embedded derivatives were measured at fair value.

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

third party to
SoftBank

Alibaba shares pledged as collateralby variable prepaid forward contract

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

82

SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2020

21. Gain (loss) from financial instruments at FVTPL
For the fiscal year ended March 31, 2020, ¥488,479 million of loss was recognized due to the decline in fair value of
WeWork shares held by the Company’s wholly owned subsidiary other than SoftBank Vision Fund.
In addition, gain and loss on valuation of WeWork shares held by SoftBank Vision Fund are included in “Operating
income from SoftBank Vision Fund and other SBIA-managed funds” under the consolidated statement of income.

22. Other non-operating loss
The components of other non-operating income and loss are as follows:(Millions of yen)Interst income
Provisions for allowance for doubtful accounts1
Provisions for allowance for loan commitment
losses2
Impairment loss on equity method investments1
Provisions for allowance for financial guarantee
contract losses3
Gain from remeasurement relating todiscontinuing the use of the equity method
Loss on redemption of corporate bonds
Other
Total

Fiscal year ended
March 31, 2019
14,016

Fiscal year ended
March 31, 2020
34,587(357)(102,947)-(90,210)(54,977)(73,721)-(59,902)

24,842-(14,538)-(2,178)(33,192)

6,631(285,562)

Notes:
1. On March 27, 2020 (EST), OneWeb Global Limited, an equity method associate of the Company, filed for relief
under Chapter 11 of the United States Bankruptcy Code. Subsequently, for the fiscal year ended March 31, 2020,
the Company estimated the recoverable amount of equity method investment in OneWeb Global Limited to be
zero and ¥49,198 million of impairment loss was recorded. In addition, ¥65,913 million of loan receivable fromthe entity was estimated that it was difficult to recover and the allowance for doubtful accounts was fully provided.
In addition, the fair value of the entity’s warrants convertible into shares was measured to be zero and ¥54,455
million is recorded as “loss arising from financial instrument at FVTPL” in the consolidated statement of income
for the fiscal year ended March 31, 2020.
2. For the fiscal year ended March 31, 2020, ¥90,210 million of provisions for allowance for loan commitment losses
related to acquire unsecured notes issued by WeWork was recorded as expected credit losses were higher than theamount less accumulated amortization after the initial recognition. The details are described in “Notes 1” under“Note 12. Other financial liabilities (current).”
3. For the fiscal year ended March 31, 2020, ¥52,349 million of provisions for allowance for financial guarantee
contract losses related to a credit facility for WeWork provided by financial institutions was recorded as expectedcredit losses were higher than the amount less accumulated amortization after the initial recognition. The details
are described in “Notes 2” under “Note 12. Other financial liabilities (current).”

83SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2020

23. Earnings per share(1) Basic earnings per share
Fiscal year ended
March 31, 2019
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 to ordinary
shareholders of the parent
Net income from discontinued operations attributable to ordinary
shareholders of the parent
Total
Weighted-average number of ordinary shares(Thousands of shares)
Basic earnings per share (Yen)Continuing operations
Discontinued operations
Total

Fiscal year ended
March 31, 2020

1,411,199(961,576)(32,007)
1,379,192(30,948)(992,524)

1,370,749(960,975)

8,443
1,379,192(31,549)(992,524)

2,175,123

2,074,225

630.193.89
634.08(463.29)(15.21)(478.50)(2) Diluted earnings per share
Fiscal year ended
March 31, 2019
Diluted net income attributable to ordinary shareholders of theparent (Millions of yen)
Continuing operations
Net income from continuing operations used in the calculationof basic earnings per share
Effect of dilutive securities issued by subsidiaries and associates
Subtotal
Discontinued operations
Net income from discontinued operations used in the calculationof basic earnings per share
Effect of dilutive securities issued by subsidiaries and associates
Subtotal
Total
Weighted-average number of ordinary shares used in the calculationof diluted earnings per share (Thousands of shares)
Weighted-average number of ordinary shares
Adjustments:
Stock acquisition rights3
Total
Diluted earnings per share (Yen)Continuing operations
Discontinued operations
Total

84

Fiscal year ended
March 31, 2020

1,370,749(10,087)
1,360,662(960,975)(14,151)(975,126)

8,443
(134)
8,309
1,368,971(31,549)(31,549)(1,006,675)

2,175,123

2,074,225

3,844
2,178,967

2,074,225

624.45
3.82
628.27(470.12)(15.21)(485.33)

SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2020

Notes:
1. The Company conducted a two-for-one share split 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. 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 effectfor the calculation for the fiscal year ended March 31, 2020.

24. Supplemental information to the consolidated statement of cash flows(1) Income taxes paid and income taxes refunded
For the fiscal year ended March 31, 2020
Payment of withholding income tax related to dividends within the group companies of ¥470,259 million, payment
of income tax mainly related to gain on sales of SoftBank Corp. shares held by SoftBank Group Japan Corporationin December 2018 of ¥321,290 million, and payment of income tax related to deemed dividends on sales of Z
Holdings Corporation shares held by SoftBank Group Japan Corporation due to an acquisition of its own sharesthrough the Tender Offer by Z Holdings Corporation of ¥78,801 million are included in “Income taxes paid.”
In addition, refunded withholding income tax related to dividends within the group companies of ¥422,648 million
is included in “Income taxes refunded.”(2) Non-cash transactions related to sale of Alibaba shares by variable prepaid forward contract
For the fiscal year ended March 31, 2020
On June 3, 2019, ¥715,044 million of current portion of financial liabilities relating to sale of shares by variable
prepaid forward contract and ¥474,468 million of derivative financial liabilities (current) recognized for sale of
Alibaba shares by variable prepaid forward contract were settled with Alibaba shares. The details are described in“Note 20. Gain relating to settlement of variable prepaid forward contract using Alibaba shares.”25. Significant subsequent events(1) Completion of merger of Sprint and T-Mobile
On April 1, 2020, the merger of Sprint and T-Mobile in an all-stock transaction (“the Transaction”)) was completed
under a definitive agreement which the Company, Sprint, T-Mobile, Deutsche Telekom AG (“Deutsche Telekom”),
and the other parties entered into on April 29, 2018 (EST) (the “Business Combination Agreement,” which waspreviously amended by an amendment dated July 26, 2019 and February 20, 2020).
In connection with the completion of the Transaction, the parties waved the condition to closing set forth in theBusiness Combination Agreement with respect to the final consent of the California public utility commission (the“CPUC”), to the extent required such that all regulatory approvals required for the Transaction to be completed on
April 1, 2020 were satisfied or waived as of such date. Subsequently, the CPUC approved the Transaction on April
16, 2020.
Upon completion of the Transaction, from April 1, 2020, Sprint is no longer a subsidiary of the Company and the
combined company T-Mobile US, Inc. (“New T-Mobile”) became an equity method associate of the Company with
an approximately 24% shareholding (fully diluted basis).

85

SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2020

a. Purpose of merger
The Company assumes that the transaction will benefit the Company’s shareholders by giving the Company anequity interest in a stronger and more competitive combined company that itself will benefit from significant
expected synergies.
The Company assumes that New T-Mobile will be a force for positive change in the U.S. wireless, video, andbroadband industries, and will have lower costs, greater economies of scale, and the resources to provide U.S.
consumers and businesses with lower prices, better quality, unmatched value, and greater competition.
b. The Transaction details
The Transaction is structured as an all-stock transaction involving two consecutive and related mergers.
(a) Merger

On April 1, 2020, each of Starburst I, Inc. and Galaxy Investment Holdings, Inc. merged with and into Huron
Merger Sub LLC, a U.S. subsidiary owned directly by T-Mobile (“T-Mobile Merger Co.”), with T-Mobile Merger
Co. as the surviving company (the “HoldCo Mergers”).
Immediately following the HoldCo Mergers, Superior Merger Sub Corp. (“T-Mobile Merger Sub”), a U.S.
subsidiary owned directly by T-Mobile Merger Co., merged with and into Sprint, with Sprint as the surviving
company (such merger together with the HoldCo Mergers, the “Merger Transactions”).
As a result of the Merger Transactions:•Sprint became an indirect wholly-owned subsidiary of New T-Mobile.
•Each option to purchase Sprint common shares (other than under Sprint’s employee stock purchase plan) wasconverted into an option to purchase common stock of New T-Mobile.

86SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2020(b) Post-transaction

approx.
43%

approx.
24%

Under the Transaction, the share exchange ratio is approximately at 9.75 Sprint shares for each T-Mobile share. In
the meantime, the Company surrendered to New T-Mobile an aggregate of 48,751,557 shares of New T-Mobile
common stock, of the 353,357,607 shares to be received from the Transaction, effective immediately following
the closing of the Transaction. Immediately following the closing, and after giving effect to such surrender,
Deutsche Telekom and the Company hold approximately 43% and 24%, respectively, of New T-Mobile commonshares, with the remaining approximately 33% held by public shareholders (each percentage is based on fully
diluted basis and indirect holdings are included). This resulted in an effective exchange ratio, immediately
following the closing of the Transaction, of the equivalent of approximately 11.00 Sprint shares (approximately
11.31 shares for Sprint stock owned by the Company and its subsidiaries) for each share of T-Mobile common
stock. Nonetheless, if the trailing 45-day volume-weighted average price per share of New T-Mobile common
stock on the NASDAQ Global Select Market is equal to or greater than USD 150.00 at any time during the period
commencing on the second anniversary of the closing date and ending on December 31, 2025, New T-Mobile will
re-issue to the Company, for no additional consideration, a number of shares of New T-Mobile common stock
equal to the abovementioned number of shares to be surrendered (the “contingent consideration”), subject to theterms and conditions included as part of the Business Combination Agreement.
New T-Mobile board of directors consists of 14 directors, 9 nominated by Deutsche Telekom, and 3 nominated by
the Company, however after New T-Mobile’s 2020 annual meeting of shareholders, it is expected to be 9
nominated by Deutsche Telekom and 4 nominated by the Company.
Subject to certain exceptions, (i) New T-Mobile shares beneficially owned by the Company and its subsidiaries
will be subject to a proxy granted to Deutsche Telekom (pursuant to which the Company will exercise the voting
rights in respect of the shares of New T-Mobile held directly or indirectly by the Company as directed by Deutsche
Telekom), in order to enable Deutsche Telekom to consolidate New T-Mobile into Deutsche Telekom’s
consolidated financial statements following the consummation of the Merger Transactions, certain transfer
restrictions, and a right of first refusal in favor of Deutsche Telekom; and (ii) New T-Mobile shares beneficiallyowned by Deutsche Telekom and its controlled affiliates will be subject to a right of first refusal in favor of theCompany and certain transfer restrictions. Furthermore, the Company and Deutsche Telekom (in each case,including certain of their respective affiliates) will be subject to certain non-compete restrictions until such timeas their respective ownership in New T-Mobile has been reduced below an agreed threshold.
The Company has also agreed to indemnify New T-Mobile and its subsidiaries following the closing of theTransaction against (i) any monetary losses arising out of or resulting from certain specified matters and (ⅱ) the
loss of value to New T-Mobile and its subsidiaries arising out of or resulting from cessation of access to spectrumof Sprint or its subsidiaries under certain circumstances.

87SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2020c. About New T-Mobile(a) Name

T-Mobile US, Inc.

(b) Headquarters

Bellevue, Washington
Overland Park, Kansas (second headquarters)(c) Name and title of representative

Chief Executive Officer
Mike Sievert(d) Nature of businessTelecommunications(e) Major shareholders and their holdings(fully diluted basis*)

Deutsche Telekom: approximately 43%
The Company: approximately 24%

Note:* The figures are calculated based on number of shares including fully diluted shares (including indirect holdings)

d. Number of shares held by the Company before and after the Merger Transactions(a) Number of shares of Sprint held before
the Merger Transactions(as of March 31, 2020)(b) Number of shares of New T-Mobile held
after the Merger Transactions1

3,445,374,483 shares(number of voting rights: 3,445,374,483)(voting ratio: 83.7%)
304,606,050 shares(number of voting rights: 304,606,050)2(voting ratio: approximately 24% (fully diluted basis))

Notes:
1. Figures are calculated based on number of shares including indirect holdings (including fully diluted shares related
to warrants).
2. The voting rights will be subject to proxy arrangements granted in favor of Deutsche Telekom.

e. Impact on the consolidated financial results
Upon completion of the Transaction, for the fiscal year ending March 31, 2021, the difference between the total
fair value of acquired New T-Mobile shares (304,606,050 shares) and contingent consideration (48,751,557 shares)
as of April 1, 2020 and the carrying amount of Sprint in the consolidated statement of income of the Company will
be recorded as gain relating to loss of control in net income from discontinued operations, however, the amount ofgain relating to loss of control has not been decided at the present moment.

(2) Prepaid forward contracts using Alibaba shares
In April and May, 2020, West Raptor Holdings 2, LLC (“WRH2 LLC”) and Skybridge LLC, wholly-owned
subsidiaries of the Company, entered into several prepaid forward contracts using Alibaba shares with financial
institutions. The Company is planning to procure aggregated amount of $11.5 billion and cash deposit has completed
except for some parts.
a. Forward Contract: Procured amount $1.5 billion
The settlement is expected in April, 2024. The share price and the number of Alibaba shares settled by the prepaid
forward contract are fixed regardless of changes in market share price in the future.
b. Floor Contract: Procured amount $1.5 billion
The settlement is expected in December, 2023 and January, 2024. The number of Alibaba shares settled by the
prepaid forward contract 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.

88SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2020c. Collar Contract: Procured amount $8.5 billion (of which, $2.5 billion is waited for that to be deposited)
The settlement is expected from January, 2022 to September 2022. The number of Alibaba shares settled by the
prepaid forward contract 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.
The above prepaid forward contracts are classified as hybrid financial instruments with embedded derivatives and theembedded derivatives are measured at fair value.
WRH2 LLC and Skybridge LLC have the option (“cash settlement option”) to settle all of the prepaid forward
contracts by either delivering cash or a combination of cash and Alibaba shares. If WRH2 LLC and Skybridge LLC
elect the cash settlement option, in case of a. Forward Contract, cash amount equal to the number of shares multipliedby the share price for the settlement, or in case of b. Floor Contract and c. Collar Contract, the cash equivalent to thefair value of the number of shares for the settlement, which is determined by the market price of the shares, will be
paid.
Alibaba shares held by WRH2 LLC and Skybridge LLC are pledged as collateral in accordance with all of the prepaid
forward contracts, and the Company granted the right of use to financial institutions, however the collateral can bereleased by cash settlement at the Company’s discretion. Alibaba continues to be our affiliated company after thecompletion of these transactions because the Company still has significant influence to Alibaba via voting right. And
the Company applies equity method to the Alibaba shares, also will continuously apply the equity method to the
Alibaba shares which are pledged as collateral because the Company practically holds economic benefit occurredfrom these shares. The carrying amount of Alibaba shares pledged as collateral by the Company as of March 31, 2020is ¥311,680 million.
The impact of the transactions on the Company’s consolidated financial results for the fiscal year ending March 31,
2021 has not been determined.

(3) Repurchase of its own shares
On May 15, 2020, SoftBank Group Corp., at the Board of Directors meeting, resolved the repurchase of its own sharespursuant to Article 156 of the Companies Act of Japan as applied pursuant to Article 165, Paragraph 3. The details
are as follows:a. Purpose of the repurchase
Based on the program announced in “SoftBank Announces JPY 4.5 trillion (USD 41 billion) Program to Repurchase
Shares and Reduce Debt” dated March 23, 2020.
b. Details of the repurchase(a) Class of shares to be repurchased

Common stock of SoftBank Group Corp.

(b) Total number of repurchased shares

135,000,000 shares (maximum)(6.70% of the total number of shares issued (excluding treasury stock))(c) Total repurchase amount¥500.0 billion (maximum)(d) Repurchase period

From May 18, 2020 to March 31, 2021

89