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, 2019 (IFRS)Tokyo, May 9, 20191.

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

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

OperatingincomeNet sales
Amount%AmountIncomebefore incometax
Amount%%

Net income

Net income
attributable toowners of theparentTotal
comprehensive
incomeAmountAmountAmount%%%Fiscal year ended
March 31, 2019

¥9,602,236 4.8 ¥2,353,931 80.5 ¥1,691,302 339.7 ¥1,454,618 17.5 ¥1,411,199 35.8 ¥1,502,295 13.0

Fiscal year ended
March 31, 2018

¥9,158,765 2.9 ¥1,303,801 27.1 ¥384,630 (46.0) ¥1,237,812 (16.0) ¥1,038,977 (27.2) ¥1,329,532 (7.3)

Fiscal year ended
March 31, 2019
Fiscal year ended
March 31, 2018

Ratio of net income
to equity,
Ratio of income Ratio of operating
attributable tobefore income tax income to net sales
owners of theto total assets (%)(%)
parent (%)

Basic earnings
per share (Yen)

Diluted earnings
per share (Yen)¥1,268.15¥1,256.53

22.0

5.0

24.5

¥933.54¥908.38

23.7

1.4

14.2

Note:
*Income on equity method investments
Fiscal year ended March 31, 2019:
Fiscal year ended March 31, 2018:¥ 316,794 million¥ 404,584 million(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, 2019

¥36,096,476¥9,009,204¥7,621,481

21.1

6,760.66

As of March 31, 2018

¥31,180,466¥6,273,022¥5,184,176

16.6

4,302.26

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

(3) Cash Flows

Fiscal year ended
March 31, 2019
Fiscal year ended
March 31, 2018

Operating activities

Investing activities

Financing activities

Cash and cash
equivalents
at the end of the year

¥1,171,864¥(2,908,016)¥2,202,291¥3,858,518¥1,088,623¥(4,484,822)¥4,626,421¥3,334,650

2.

Dividends
Dividends per shareFirst quarter
Fiscal year ended
March 31, 2018
Fiscal year ended
March 31, 2019
Fiscal year ending
March 31, 2020
(Forecasted)

Fiscal year ended
March 31, 2018
Fiscal year ended
March 31, 2019
Fiscal year ending
March 31, 2020
(Forecasted)

Second quarter

Third quarter

Fourth quarter

Total

(Yen)

(Yen)

(Yen)

(Yen)

(Yen)

-

22.00

-

22.00

44.00

-

22.00

-

22.00

44.00

-

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)%%

47,9384.7

1.2

47,166

3.5

0.8

-

Note:
* Resolution for two-for-one ordinary share split was passed, with the record date of June 27, 2019, at the Board of Directors
meeting held on May 9, 2019.
The amounts of dividend for the fiscal year ended March 31, 2018 and for the fiscal year ended March 31, 2019 are presented as
the amounts of actual dividend before the share split.
The amount of forecasted dividend for the fiscal year ending March 31, 2020 is presented as the amount of forecasted dividend
per share based on the number of shares after 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.
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 38 “(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, 2019:
1,100,660,365 shares
As of March 31, 2018:
1,100,660,365 shares[2] Number of treasury stocks:
As of March 31, 2019:46,826,924 shares
As of March 31, 2018:
11,162,425 shares[3] Number of average stocks during twelve-month period (April-March):
Fiscal year ended March 31, 2019: 1,087,561,293 sharesFiscal year ended March 31, 2018: 1,089,464,753 shares

[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, 2019

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

866.3

Fiscal year ended
March 31, 2018

¥62,412(97.9)¥6,496(99.8)¥(150,510)-¥204,676(92.5)Net income pershare-basic (Yen)

Net income pershare-diluted (Yen)

Fiscal year ended
March 31, 2019

¥1,818.47¥1,815.26

Fiscal year ended
March 31, 2018

¥187.87¥187.64

Net income(2) Non-Consolidated Financial Position
Total assets

Net Assets

Equity ratio (%)

Shareholders’ equity
per share (Yen)

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

36.0¥5,148.38

As of March 31, 2018¥14,836,396¥3,876,390

26.1¥3,549.97

Note: Shareholders’ equity (Non-consolidated)
As of March 31, 2019:¥5,425,534 million
As of March 31, 2018:¥3,867,685 million(3) Differences in Non-Consolidated Operating Results from the Previous Fiscal Year
The increase in operating revenue in the fiscal year ended March 31, 2019 from the previous fiscal year ended March 31,2018 was mainly attributable to a ¥2,051,422 million year-on-year increase in dividends from subsidiaries and associates.
The role and function of SoftBank Group Corp. have transformed to an investment-focusing strategic holding company
which aims to accomplish the Cluster of No.1 Strategy. Therefore, effective from the beginning of the current accounting
period, classification of dividends from subsidiaries and associates is changed from non-operating revenue to operating
revenue.
According to this reclassification, both of the operating revenue and operating income of previous fiscal year increased by¥18,361 million with no effects on ordinary income and net income.
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 9, 2019 (JST), the Company will hold an earnings results briefing for the media, institutional investors, andfinancial institutions. This earnings results briefing will be broadcast live on the Company’s website in both Japanese andEnglish at https://group.softbank/en/corp/irinfo/presentations/. The Data Sheet will also be posted on the website on thesame day at the same site.

SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2019

(Appendix)

Contents
1. Results of Operations ................................................................................................................................................... P. 3
(1) Overview of Results of Operations ........................................................................................................................ P. 3
a. Consolidated Results of Operations ................................................................................................................... P. 4
b. Results by Segment ......................................................................................................................................... P. 10(a) SoftBank Segment ....................................................................................................................................... P. 11(b) Sprint Segment ............................................................................................................................................ P. 12(c) Yahoo Japan Segment ................................................................................................................................. P. 15(d) Arm Segment .............................................................................................................................................. P. 15(e) SoftBank Vision Fund and Delta Fund Segment ......................................................................................... P. 20(f) Brightstar Segment ...................................................................................................................................... P. 27(g) Other and Reconciliation............................................................................................................................. P. 27(2) Overview of Financial Position ............................................................................................................................ P. 28(3) Overview of Cash Flows ...................................................................................................................................... P. 35(4) Forecasts ............................................................................................................................................................... P. 37
2. Basic Approach to the Selection of Accounting Standards ........................................................................................ P. 37
3. Notes to Summary Information ............................................................................................................................... P. 38(1) Changes in Accounting Policies ........................................................................................................................ P. 38(2) Changes in Accounting Estimates ..................................................................................................................... P. 38
4. Consolidated Financial Statements and Primary Notes ........................................................................................... P. 39(1) Consolidated Statement of Financial Position ................................................................................................... P. 40(2) Consolidated Statement of Income and Consolidated Statement of Comprehensive Income ........................... P. 42(3) Consolidated Statement of Changes in Equity .................................................................................................. P. 44(4) Consolidated Statement of Cash Flows ............................................................................................................. P. 47(5) Significant Doubt about Going Concern Assumption ....................................................................................... P. 49(6) Notes to Consolidated Financial Statements ..................................................................................................... P. 49

1SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2019

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.
SprintSprint Corporation
Arm
Arm Limited
SoftBank Vision Fund or SVF
SoftBank Vision Fund L.P. and its alternative investment vehicles
Delta FundSB Delta Fund (Jersey) L.P.
Alibaba
Alibaba Group Holding Limited
SBIA
SB Investment Advisers (UK) Limited
The fiscal year
Fiscal year ended March 31, 2019
The first quarter
Three-month period ended June 30, 2018
The second quarter
Three-month period ended September 30, 2018
The third quarter
Three-month period ended December 31, 2018
The fourth quarter
Three-month period ended March 31, 2019
The previous fiscal year
Fiscal year ended March 31, 2018
The fiscal year-end
March 31, 2019
The previous fiscal year-end
March 31, 2018
Adoption of IFRS 9 and IFRS 15
In the first quarter, the Company adopted IFRS 9 “Financial Instruments” and IFRS 15 “Revenue from Contracts with
Customers” (collectively, the “new standards”). The cumulative impact of the adoption of the new standards was recognized as an adjustment to the balance of retained earnings on the date of adoption (April 1, 2018), and the Company has
not adjusted the presentation of information of the previous fiscal year. In the tables of this appendix, figures for the previous fiscal year are presented under “previous standards,” and the impacts of adopting the new standards on the results ofthe fiscal year are presented under “impact of adopting new standards.” Further, in the consolidated statement of financial
position, the cumulative impact of the adoption of the new standards was recognized as adjustments to the balances ofretained earnings and accumulated other comprehensive income on the date of adoption. See “1. Significant accounting
policies” under “(6) Notes to Consolidated Financial Statements” in “4. Consolidated Financial Statements and Primary
Notes” for details.

Changes in Segment Classification
In accordance with changes in the Company’s organization based on its unique organizational strategy, Cluster of No.1
Strategy, the Company revised its segment classifications for management purposes in the first quarter, comprising six
reportable segments: SoftBank, Sprint, Yahoo Japan, Arm, SoftBank Vision Fund and Delta Fund, and Brightstar. See “b.
Results by Segment” under “(1) Overview of Results of Operations” in “1. Results of Operations” for an overview ofreportable segments.

2

SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2019

1. Results of Operations(1) Overview of Results of Operations
1. Highlights of results
 Operating income: ¥2,353.9 billion (increased 80.5% yoy)
- Operating income from SoftBank Vision Fund and Delta Fund was ¥1,256.6 billion.
・ Unrealized gain of ¥1,378.6 billion from continuing investments: reflecting the increase in the fair values of
Uber, Guardant Health, OYO,1 and other investments.
・ Completed exits from two investments (Flipkart, NVIDIA) in the fiscal year. Gain on investments of ¥146.7
billion was recorded on the sale of Flipkart shares. For NVIDIA, the gain on investments during the entire
investment period was ¥138.3 billion; total gain was ¥306.8 billion including derivative gain.
 Net income attributable to owners of the parent: ¥1,411.2 billion (increased 35.8% yoy)
- Finance cost of ¥(633.8) billion*- Derivative gain of ¥158.2 billion: gain recorded mainly as a result of collar transactions using NVIDIA shares.
- Changes in third-party interests in SoftBank Vision Fund and Delta Fund of ¥(586.2) billion*: increased due tohigher gain on investments.
- Income taxes of ¥(236.7) billion*: tax benefit of ¥405.6 billion through the use of loss carryforwards of a
subsidiary that had not been recognized as deferred tax assets, for the disposal of SoftBank Corp. shares.
*recorded as cost for the fiscal year

2. Highlights of operations- Listing of SoftBank Corp.
- Merger of Sprint and T-Mobile: review by the Federal Communications Commission (FCC) and other regulatory agencies is underway.
- SoftBank Vision Fund: 69 continuing investments. During the fiscal year, two investees became publicly listed
issuers. Three investees have filed documents related to initial public offerings.
3. Enhancement of shareholder returns- Annual dividend of the fiscal year to be ¥44 per share (total cash dividend to be ¥47.2 billion).
- Authorized repurchase of own shares, with a maximum allowance of ¥600.0 billion, using proceeds from thedisposal of SoftBank Corp. shares. As of the fiscal year-end, ¥384.1 billion of shares had been repurchased.
- Approved two-for-one share split and forecast of annual dividend of ¥44 for the fiscal year ending March 2020
after the share split (with a forecasted total cash dividend of ¥92.7 billion), effectively doubling the amountfrom the fiscal year.
Share Split and Dividend Forecast for the Fiscal Year Ending March 2020
On May 9, 2019, the Board of Directors of the Company approved the following share split and forecast of annual dividend
for the fiscal year ending March 2020.
Share Split
The Company will split its ordinary share owned by shareholders listed or recorded in the shareholder registry at a ratio of
two for one, with the record date of June 27, 2019.
Dividend Forecast for the Fiscal Year Ending March 2020
The annual dividend for the fiscal year ending March 2020 after the share split is forecasted to be ¥44.00 per share, which isthe same amount with the fiscal year ended March 2019. This effectively doubles the annual dividend amount year on year.
(Reference) Breakdown of annual dividend

Forecast for the fiscal year ending March 2020 (after the share split)

Interim¥22.00

Actual and plan for the fiscal year ended March 2019¥22.00

Dividend per share
Year-end
Total¥22.00¥44.00Cash dividend
Total¥92.7 billion¥22.00¥44.00¥47.2 billion(planned)(planned)
Note: The total amount of cash dividend forecast for the fiscal year ending March 2020 is an estimate amount made based on the total
number of shares issued (excluding treasury stock) as of March 31, 2019.

3

SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2019

Listing of SoftBank Corp.
The Company’s subsidiary SoftBank Corp. was listed on the First Section of the Tokyo Stock Exchange on December 19,
2018. At the time of this listing, SoftBank Group Japan Corporation, a wholly owned subsidiary of the Company, disposeda portion of its holdings of SoftBank Corp. shares (33.50% of total shares issued) and received proceeds of ¥2,349,832
million. As a result, the Company’s indirect ownership percentage of SoftBank Corp. changed from 99.99% to 66.49%.
Since SoftBank Corp. remains a subsidiary of the Company, an amount equivalent to the gain on this disposal (after considering tax) has been recorded as capital surplus in the Company’s consolidated statement of financial position.

Initiatives Using Proceeds from the Disposal of SoftBank Corp. Shares
The Company earmarked ¥700 billion for strategic investments going forward, approximately ¥700 billion to strengthen
financial position, and ¥600 billion to return to shareholders, for the use of the approximately ¥2 trillion (after considering
expected tax expenses) of the proceeds from the disposal of a portion of SoftBank Corp. shares held at the listing of SoftBank Corp.
For the strengthening of its financial position, the Company took measures totaling approximately ¥700 billion, including
the repayment of $4.37 billion of the borrowings made by its wholly owned subsidiary Skywalk Finance GK using Alibaba
shares as collateral, and the acquisition of $410 million and €520 million of the Company’s outstanding foreign currencydenominated senior notes. For shareholder returns, the Company authorized the repurchase its own shares with a maximum
allowance of ¥600.0 billion (up to 112,000,000 shares). Of this amount, the Company has used ¥384.1 billion (64.0% of
the maximum allowance) for share repurchase as of the fiscal year-end.

a. Consolidated Results of Operations(Millions of yen)

Net sales
Operating income (excluding
income from SoftBank Vision
Fund and Delta Fund)
Operating income from
SoftBank Vision Fund andDelta Fund2
Operating income
Income before income tax
Net income
Net income attributable to ownersof the parent

Fiscal year ended March 31
2018
2019
PreviousNew
standards
Standards

ChangeChange %Fiscal year ended
March 31, 2019
Impact of adopting
new standards

9,158,765

9,602,236

443,471

4.8%

59,3101,000,820

1,097,290

96,4709.6%

169,066

302,981
1,303,801
384,630
1,237,812

1,256,641
2,353,931
1,691,302
1,454,618

953,660
1,050,130
1,306,672
216,806

314.8%
80.5%
339.7%
17.5%

135,527
304,593261,243
245,426

1,038,977

1,411,199

372,22235.8%

224,510

Reference: Average exchange rates used for translations
Q1
USD / JPY

¥111.61

Fiscal year ended March 2018
Q2
Q3
Q4
¥111.38¥112.74¥108.854

Q1¥108.71

Fiscal year ended March 2019
Q2
Q3
Q4
¥111.55¥112.83¥110.46

SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2019

An overview of the consolidated results of operations for the fiscal year is as follows:(a) Net Sales
Net sales increased ¥443,471 million (4.8%) year on year, to ¥9,602,236 million. Net sales increased in the following
segments: SoftBank, Sprint, and Yahoo Japan. Net sales were almost flat in the Arm and Brightstar segments.
(b) Operating Income (Excluding Income from SoftBank Vision Fund and Delta Fund)
Operating income (excluding income from SoftBank Vision Fund and Delta Fund) increased ¥96,470 million (9.6%) year
on year, to ¥1,097,290 million. Segment income improved ¥40,423 million in the SoftBank segment, ¥1,012 million in the
Sprint segment, ¥165,346 million in the Arm segment, and ¥21,238 million in the Brightstar segment. However, segment
income deteriorated ¥41,376 million in the Yahoo Japan segment and ¥68,218 million in the Other segment.
The segment income of the Arm segment includes gain relating to loss of control over subsidiaries of ¥176,261 million,
which was recognized as a result of Arm’s Chinese subsidiary becoming an associate accounted for using the equity method,
following the establishment of a joint venture.

(c) Operating Income from SoftBank Vision Fund and Delta Fund
Operating income from SoftBank Vision Fund and Delta Fund was ¥1,256,641 million, compared with income of ¥302,981
million in the previous fiscal year. This was mainly due to an unrealized gain of ¥1,378,553 million, reflecting an increasein the fair values of continuing investments including Uber Technologies, Inc. (“Uber”), Guardant Health, Inc. (“Guardant
Health”), and Oravel Stays Private Limited (“OYO”),1 and a realized gain of ¥146,682 million on the sale of Flipkart
Private Limited (“Flipkart”) shares. Conversely, a loss of ¥222,628 million was recorded for the investment in NVIDIA
Corporation (“NVIDIA”).
The total gain on investment in NVIDIA for the entire investment period (December 2016 to January 2019) was ¥306,809
million (before deducting third-party interests). A gain of ¥365,325 million was recorded in the previous fiscal year, consistent with NVIDIA’s share price increase, while a loss of ¥222,628 million was recorded in the fiscal year, consistent
with its share price drop until the investment was disposed in January 2019. On the other hand, derivative gain of ¥168,471
million, the total amount for the previous fiscal year and the fiscal year, was recorded as non-operating income for theprevious fiscal year and the fiscal year, as a result of collar transactions conducted to hedge the share price drop.
See “(e) SoftBank Vision Fund and Delta Fund Segment” under “b. Results by Segment” for details.

(d) Operating Income
As a result of (b) and (c), operating income increased ¥1,050,130 million (80.5%) year on year, to ¥2,353,931million.

(e) Finance Cost
Finance cost increased ¥117,637 million (22.8%) year on year, to ¥633,769 million. Interest expenses increased ¥45,544
million at SoftBank Group Corp.3 This was mainly due to an increase in interest-bearing debt associated with the issuanceof foreign currency-denominated senior notes in September 2017 and the borrowings made by a wholly owned subsidiaryof the Company using Alibaba shares. The Company also recognized ¥24,051 million in conjunction with the partial repayment of a senior loan, as a result of the full amortization of the unamortized balance of an amortized cost. In addition,
the interest expenses of SoftBank Vision Fund increased ¥25,339 million due to borrowings made using NVIDIA shares.

5SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2019

(Millions of yen)

Fiscal year ended March 31
2018
2019
(516,132)(633,769)

Change(117,637)

SoftBank Group Corp.3(193,036)(238,580)(45,544)

SoftBank Vision Fund

(7,801)(33,140)(25,339)(267,089)(291,832)(24,743)$(2,402) million$(2,631) million$(229) million

Finance Cost

SprintReference: In U.S. dollars(f) Income on Equity Method Investments

Income on equity method investments decreased ¥87,790 million (21.7%) year on year, to ¥316,794 million. This was
mainly due to a decrease of ¥86,088 million (20.3%) in income on equity method investments related to Alibaba, to¥338,683 million.

Net Income Attributable to Alibaba and the Company’s Income on Equity Method Investments Related to Alibaba
Twelve months ended December 314
2017
2018

ChangeAlibaba
Net income attributable to Alibaba (US GAAP)Net income attributable to Alibaba (IFRSs)

Million CNY

Million CNY

67,071

69,642Million CNY

2,571

Million CNY

Million CNY

Million CNY

84,89370,714(14,179)2018

Fiscal year ended March 31
2019

ChangeIncome on equity method investments related to Alibaba(Reference) Interest ratio as of December 31
Income on equity method investments(Reference) Effective exchange rate CNY/JPY
Income on equity method investments

29.36%

29.12%(0.24) pp

Million CNY

Million CNY

Million CNY

25,08820,644(4,444)¥16.93¥16.41¥(0.52)Million yen

Million yen

Million yen

424,771338,683(86,088)(g) Foreign Exchange Gain and Loss
Foreign exchange gain was ¥11,145 million, compared with a loss of ¥34,518 million in the previous fiscal year.

(h) Derivative Gain and Loss
Derivative gain was ¥158,230 million, compared with a loss of ¥630,190 million in the previous fiscal year. Derivative
gain of ¥2,876 million was recorded in relation to a collar transaction embedded in a variable prepaid forward contract for
Alibaba shares, compared with a loss of ¥604,156 million in the previous fiscal year. Derivative gain of ¥177,373 million,
which arose until the settlement of collar transactions utilizing NVIDIA shares in January 2019, was also recorded.

6SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2019(i) Gain and Loss from Financial Instruments at FVTPL
Gain from financial instruments at FVTPL was ¥38,443 million, which arose from the change in the fair values of investments held by the Company outside of SoftBank Vision Fund and Delta Fund, compared with a loss of ¥68 million in theprevious fiscal year.

(j) Changes in Third-party Interests in SoftBank Vision Fund and Delta Fund
Changes in third-party interests in SoftBank Vision Fund and Delta Fund amounted to an increase of ¥586,152 million,
compared with an increase of ¥160,382 million in the previous fiscal year. An increase in third-party interest is reflected asa decrease in the Company’s income. The breakdown is as below:(Millions of yen)

Fiscal year ended March 31
2018
2019
Attributable to investors entitled to fixed distribution(39,397)(102,712)

Attributable to investors entitled to performance-based distribution(120,985)(483,440)

Changes in third-party interests in SoftBank Vision Fund and Delta Fund

(160,382)(586,152)

Changes in third-party interests in SoftBank Vision Fund and Delta Fund indicate the sum of distributions to third-party
investors in proportion to their interests in fixed distributions and performance-based distributions. The distributions are
based on the gain and loss on investments at both funds, net of management and performance fees payable to SBIA, theCompany’s wholly owned subsidiary and manager of SoftBank Vision Fund, and operating and other expenses of the funds.
See “(2) Third-party interests in SoftBank Vision Fund and Delta Fund” under “3. SoftBank Vision Fund and Delta Fundbusiness” in “(6) Notes to Consolidated Financial Statements” in “4. Consolidated Financial Statements and Primary Notes”
for details.
(k) Other Non-operating Income and Loss
Other non-operating income was ¥32,680 million, compared with income of ¥17,535 million in the previous fiscal year.
See “19. Other non-operating income” under “(6) Notes to Consolidated Financial Statements” in “4. Consolidated Financial Statements and Primary Notes” for details.
(l) Income before Income Tax
As a result of (d) to (k), income before income tax increased ¥1,306,672 million (339.7%) year on year, to ¥1,691,302 million.
(m) Income Taxes
Income taxes were ¥236,684 million, compared with a credit of ¥853,182 million (profit) in the previous fiscal year. The
effective income tax rate of 14.0% was significantly lower than the statutory income tax rate of 31.46%. This was mainly
due to the use of loss carryforwards that had not been recognized as deferred tax assets at SoftBank Group Japan Corporation, a wholly owned subsidiary of the Company, against the gain on disposal of a portion of its SoftBank Corp. shares(33.50% of total shares issued), when SoftBank Corp. was listed in December 2018. Mainly due to this impact, income
taxes were reduced by ¥405,577 million.
Current taxes of ¥64,892 million were recorded for the aforementioned realized gain in Flipkart, which mainly operates
businesses in India. Capital gains on investments in entities that operate businesses in India are subject to tax in India. As

7

SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2019a result of the sale of Flipkart shares occurring within 24 months of making the investment, the sale taxed at 43.68%, theIndian short-term capital gains tax rate.
(n) Net Income
As a result of (l) and (m), net income increased ¥216,806 million (17.5%) year on year, to ¥1,454,618 million.
(o) Net Income Attributable to Owners of the Parent
After deducting net income attributable to non-controlling interests such as those of Yahoo Japan Corporation, Sprint, and
SoftBank Corp. from (n), net income attributable to owners of the parent increased ¥372,222 million (35.8%) year on year,to ¥1,411,199 million.
The percentage of SoftBank Corp.’s net income attributable to non-controlling interests has increased, due to a decreasein the Company’s indirect ownership percentage of SoftBank Corp., from 99.99% to 66.49%, on December 19, 2018.
(p) Comprehensive Income
Comprehensive income increased ¥172,763 million (13.0%) year on year, to ¥1,502,295 million. Of this, comprehensive
income attributable to owners of the parent increased ¥287,107 million (24.9%), to ¥1,440,235 million.

8SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2019

Issuance of New Shares by Yahoo Japan Corporation through Third-Party Allotment to SoftBank Corp. andAcquisition by Yahoo Japan Corporation of Its Own Shares through Tender Offer
On May 8, 2019, Yahoo Japan Corporation resolved to issue 1,511,478,050 new shares for ¥456.5 billion to SoftBank
Corp. through a third-party allotment (the “Third-Party Allotment”), of which SoftBank Corp. resolved to purchase theentire shares. Yahoo Japan Corporation also resolved to implement a tender offer for its own shares from May 9, 2019
to June 5, 2019 (the “Tender Offer”), and SoftBank Group Corp. determined to accept the Tender Offer and tender its
entire holding of 1,834,377,600 common shares (equivalent to ¥526.5 billion) of Yahoo Japan Corporation, held by its
wholly owned subsidiary SoftBank Group Japan Corporation (“SBGJ”).
In the event that SoftBank Corp. purchases the shares of Yahoo Japan Corporation through the Third-Party Allotment,
and Yahoo Japan Corporation purchases all of the shares to be tendered by SBGJ in the Tender Offer (collectively, the“Transactions”), the Company’s ownership in common shares of Yahoo Japan Corporation will be 44.64%*1 (all ofwhich are indirect holdings through SoftBank Corp.), compared with 48.16% *2 (all of which are indirect holdings
through subsidiaries, including SoftBank Corp.’s shareholding of 12.08%) as of the fiscal year-end. As a result of theTransactions, Yahoo Japan Corporation is expected to become a subsidiary of SoftBank Corp., which will be deemedto effectively control the company, considering its dispatch of officers to Yahoo Japan Corporation as board members.
Consequently, Yahoo Japan Corporation will remain a subsidiary of the Company in the Company’s consolidated financial results. The Company’s economic interests in Yahoo Japan Corporation are expected to drop from 44.11% to29.68% in accordance with an increase in non-controlling interests.
Note:
1. This indicates a ratio to 4,760,851,065 shares of Yahoo Japan Corporation, an amount derived by subtracting 1,902,256,600
shares, which is the total of the number of treasury stock as of March 31, 2019 (67,879,000 shares) and the number of own shares
to be acquired if Yahoo Japan Corporation purchases all shares to be tendered by SBGJ in the Tender Offer (1,834,377,600
shares), from the number of shares issued as of March 31, 2019 (5,151,629,615 shares), and adding the number of new shares tobe issued in the Third-Party Allotment (1,511,478,050 shares), rounded to two decimal place. If the number of shares being
tendered in the Tender Offer exceeds the number of shares planned to be purchased, the purchase will be implemented on a pro
rata basis. As such, depending on the status of tenders made in the Tender Offer, the actual shareholding ratio may be different.
2. This indicates a ratio to 5,083,750,615 shares of Yahoo Japan Corporation, an amount derived by subtracting the number oftreasury stock as of March 31, 2019 (67,879,000 shares) from the number of shares issued as of March 31, 2019 (5,151,629,615
shares), rounded to two decimal place. The same applies to any references to shareholding ratio in this section except the one
defined in note 1.

(Reference)
Before the Transactions (as of March 31, 2019)

After the Transactions
In case the Third-Party Allotment was completed and Yahoo
Japan Corporation acquired all the shares to be tendered by
SBGJ at the Tender Offer

9SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2019b. Results by Segment
The Company’s reportable segments are the components of its business activities for which decisions on resource allocation and assessment of performance are made. In accordance with changes in the Company’s organization based on its
unique organizational strategy, Cluster of No.1 Strategy, the Company revised its segment classifications for management
purposes in the first quarter, comprising six reportable segments: SoftBank, Sprint, Yahoo Japan, Arm, SoftBank Vision
Fund and Delta Fund, and Brightstar. The following is a summary of the reportable segments.
The main businesses and core companies of each reportable segment are as follows:
Segments
Main businesses

Core companies

Reportable segments
SoftBank· Provision of mobile communications services, sale of mobile
devices, provision of broadband and other fixed-line communications services in Japan· Sale of PC software, peripherals, and mobile device accessories
in Japan

SoftBank Corp.
Wireless City Planning Inc.
SB C&S Corp. (formerly SoftBank
Commerce & Service Corp.)

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

Sprint Corporation

Yahoo Japan· Internet advertising· e-commerce business· Membership services

Yahoo Japan Corporation
ASKUL Corporation

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

Arm Limited

SoftBank Vision Fundand Delta Fund

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

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

Brightstar· Distribution of mobile devices overseas

Brightstar Corp.

· Alternative investment management business· Fukuoka SoftBank HAWKS-related businesses· Smartphone payment business

Fortress Investment Group LLC
Fukuoka SoftBank HAWKS Corp.
PayPay Corporation

Other

Note: Income and adjusted EBITDA of reportable segments are calculated as follows.
Segments excluding the SoftBank Vision Fund and Delta Fund segment
Segment income = net sales − operating expenses (cost of sales + selling, general and administrative expenses) ± other operating
income and loss, for each segment
Adjusted EBITDA = segment income (loss) + depreciation and amortization ± other adjustments
SoftBank Vision Fund and Delta Fund segment
Segment income = gain and loss on investments at SoftBank Vision Fund and Delta Fund − operating expenses
Adjusted EBITDA = segment income (loss) + depreciation and amortization ± adjustments relating to investments in SoftBank Vision Fund and Delta Fund (unrealized gain and loss on valuation of investments + effect of foreign exchange translation) ± other adjustments
For historical principal operational data of each segment, their calculation methods, and definitions of terms, see the Data Sheeton the Company’s website at https://group.softbank/en/corp/irinfo/presentations/.

10SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2019(a) SoftBank Segment
1. Achieved higher net sales and segment income, driven by an expansion of telecom service customer base.
2. SoftBank Corp. was listed on the Tokyo Stock Exchange First Section on December 19, 2018.
(Millions of yen)

Fiscal year ended March 31
2018
2019
PreviousNew
standards
standards

ChangeChange %Fiscal year ended
March 31, 2019
Impact of adopting
new standards

3,608,838

3,747,745

138,9073.8%(32,068)

Segment income

684,717725,140

40,423

5.9%

49,416

Depreciation and amortization

Net sales

505,230

487,246(17,984)(3.6%)-

Other adjustments

9,710

81

(9,629)(99.2%)-

Adjusted EBITDA

1,199,657

1,212,467

12,8101.1%

49,416

Capital expenditures(acceptance basis)378,858

409,499

30,641

8.1%-

OVERVIEWIn order to achieve sustainable growth, SoftBank Corp., under its Beyond Carrier Strategy, aims to expand its telecom
service customer base, while expanding businesses in new areas that are expected to generate synergies with its existingtelecommunications business, by cooperating or collaborating with partner companies including SoftBank Vision
Fund’s portfolio companies. As businesses in new areas, the company is currently working to build up new services,
including a shared office service through a joint venture with WeWork Companies, Inc. (“WeWork”) of the U.S., and ataxi booking platform service through a joint venture with Didi Chuxing Technology Co., Ltd. of China. Both joint
ventures are accounted for using the equity method by SoftBank Corp.
FINANCIAL RESULTS
Both net sales and segment income increased year on year, driven by a steady growth in the telecommunications business,
especially the service for retail consumers. Net sales growth was attributable to an increase in telecom service revenue
from service for retail consumers, which is the largest revenue source, led by the steady expansion in customer base.
The cumulative number of smartphone subscribers with the three brands – SoftBank, Y!mobile, and LINE MOBILE –increased 1.95 million from the previous fiscal year-end, to 22.08 million, and the cumulative number of subscribers to
SoftBank Hikari, a fiber-optic service, increased 940,000 from the previous fiscal year-end, to 5.92 million. Segment
income and adjusted EBITDA also increased as a result of increased net sales, especially telecom service revenue that
contributed to profit.
Depreciation and amortization expenses, which had increased in the previous fiscal year due to the temporary impact
from the termination of 3G services on 1.7 GHz in January 2018, decreased year on year.
Capital expenditures, on the basis of acceptance, increased year on year, due to initiatives to expand service areas andimprove the quality of LTE services.
For more information on SoftBank Corp.’s financial results and business operations, please refer to its website at:https://www.softbank.jp/en/corp/ir/

11

SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2019(b) Sprint Segment
1. Net sales increased 3.5% yoy to ¥3,726.8 billion. U.S. dollar-based wireless telecom service revenue has
been stabilized, excluding the impact of adopting the new standards.
2. Segment income increased 0.4% yoy to ¥280.3 billion, including the positive impact of adopting the newstandards.
3. Review by the Federal Communications Commission (FCC) and other regulatory agencies regarding themerger with T-Mobile is still underway.
(Millions of yen)

Fiscal year ended March 31
2018
2019
PreviousNew
standards
standards
Net sales

Fiscal year ended
March 31, 2019
ChangeChange %Impact of adopting
new standards

3,601,961

3,726,844

124,883

3.5%

59,653

279,283

280,295

1,012

0.4%

95,488Segment income

953,820

1,040,958

87,1389.1%-

5(5,762)

91,921

97,683--Adjusted EBITDA

1,227,341

1,413,174

185,833

15.1%

95,48832,40633,600

1,194

3.7%

535

29,617
(296)
2,493
8,584
(37)

29,921(1,147)
2,532
9,386
828

304
(851)
39
802
865

1.0%
287.5%
1.6%
9.3%
-

(323)
858
-

11,04012,746

1,706

15.5%

858

Depreciation and amortization
Other adjustments

U.S. dollar-based results (IFRSs)
Net sales
Cost of sales and selling, generaland administrative expenses
Other operating income (loss)
Segment income
Depreciation and amortization
Other adjustments5
Adjusted EBITDA(Millions of U.S. dollars)

Reference: Disclosed by Sprint (US GAAP)
Network capital expenditures
3,319(cash basis)

4,963

1,644

49.5%

-

945

(914)

(1,859)--Adjusted free cash flow

(Millions of U.S. dollars)

OVERVIEW
Sprint is working to expand its net sales by increasing the number of postpaid and prepaid subscribers and stabilizing
its ARPU. To achieve this goal, Sprint has continued its effort to further improve network quality and increase customer
value by leveraging its ample spectrum holdings. In the fiscal year, Sprint expects to further increase network cash
capital expenditures to improve its network quality. At the same time, Sprint continues its efforts to enhance profitability
by further improving operational efficiency.

12SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2019

Merger of Sprint and T-Mobile
On April 29, 2018, Sprint and T-Mobile US Inc. (“T-Mobile”) entered into a definitive agreement to merge in an allstock transaction (the “Transaction”). Upon completion of the Transaction, the combined company is expected to
become an equity method associate of the Company with an approximately 27.4% shareholding, and Sprint will nolonger be a subsidiary of the Company. The Transaction is subject to Sprint and T-Mobile stockholder approvals,
regulatory approvals, and other customary closing conditions. To obtain regulatory approvals for the merger, Sprint
and T-Mobile completed the Hart-Scotto-Rodino filing with the Department of Justice (DOJ). Furthermore, the parties filed merger applications with the Federal Communications Commission (FCC) and the Committee on Foreign
Investment in the United States (CFIUS). By the end of the fiscal year, the Transaction received clearance from
CFIUS, while review is still underway by DOJ, FCC, and other regulatory agencies. The Transaction is expected toreceive federal regulatory approval in the first half of 2019.
FINANCIAL RESULTS (IN U.S. DOLLARS)Net sales increased $1,194 million (3.7%) year on year, to $33,600 million. Of the net sales increase, $535 million
comes from adopting the new standards, with a negative impact on telecom service revenue and a positive impact onequipment revenue. Excluding these impacts, net sales increased $659 million year on year. Although telecom service
revenue fell mainly due to a decrease in wireline revenue, equipment revenue increased due to an increase in equipment
rentals revenue.
Of telecom service revenue, excluding the negative impact of adopting the new standards, quarterly wireless telecom
service revenue has been stabilized, with year-on-year growth from the second quarter to the fourth quarter.
Segment income increased $39 million (1.6%) year on year, to $2,532 million.
Net sales increased $659 million year on year (excluding the impact of adopting the new standards) as mentioned
above. Operating expenses (cost of sales and selling, general and administrative expenses) increased $627 million year
on year (excluding the impact of adopting the new standards), mainly due to an increase in depreciation expenses following an increase of leased device assets. Other operating income and loss deteriorated $851 million year on year, due
to the absence of one-time gains recognized in the previous fiscal year, such as a gain on spectrum license exchange andgain on litigation settlement. On the other hand, the adoption of the new standards had a positive impact of $858 million
on segment income ($535 million for the increase in net sales and $323 million for the push-down of operating expenses).
As a result, segment income increased $39 million year on year.
Adjusted EBITDA increased $1,706 million (15.5%) year on year, to $12,746 million, which included the sameamount of the positive impact as on segment income from the adoption of the new standards.
Adjusted free cash flow decreased $1,859 million year on year, to negative $914 million (as disclosed by Sprint,
US GAAP). An increase in operating cash flows was more than offset by an increase in expenditures for the acquisitionof telecom equipment for the 5G network.
Accounting treatment of Sprint's impairment losses in the Company's consolidated financial statements
On May 7, 2019 (EST), Sprint announced that it recorded impairment losses of $2 billion in the fourth quarter.
However, the Company did not recognize the impairment losses in its consolidated financial statements, because
recoverable value of Sprint ((fair value – cost of disposal) x the Company’s ownership of 84.4%) was higher than its
consolidated carrying amount at the fiscal year-end.

13

SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2019

OPERATIONS
Cumulative Subscriber6(Thousands)

March 31, 2019

Change fromMarch 31, 2018

32,774655

26,598(215)

Prepaid

8,816

(173)

Wholesale and affiliate

12,897

(620)

Total

54,487(138)

Three months ended March 31, 2019

YoY Change

169

130

(189)

(244)

Prepaid

(30)

(200)

Wholesale and affiliate

(147)
(8)

18
(52)

Postpaid
Postpaid phone

Net Additions7 (Excluding Special Factors)(Thousands)

Postpaid
Postpaid phone

Total

Postpaid phone subscriber net loss was mostly a result of lower gross additions associated with the introduction of lesspromotional service pricing in July 2018 and higher churn as more customers rolled off promotional offers. Postpaid net
additions included 129,000 subscribers who migrated from the prepaid subscriber base.
Churn Rate (Postpaid)
Three months ended March 31, 2019

YoY Change

Postpaid phone churn rate

1.82%

0.14 pp deterioration

Postpaid churn rate

1.81%

0.03 pp deterioration

ARPU (Postpaid)
Three months ended March 31, 2019
The new standards

YoY Change

Postpaid phone ARPU

$50.18$(0.26)

Postpaid ARPU

$43.25$(1.15)

Postpaid ARPU decreased $1.15 year on year due to the adoption of the new standards, which had a $0.74 negative
impact, and to the increase in sales of smartwatches and automotive data devices, which generally have a lower ARPU
than phones.

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

14SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2019(c) Yahoo Japan Segment(Millions of yen)

Fiscal year ended March 31
2018
2019

ChangeChange %Net sales

876,098

947,437

71,3398.1%

Segment income

176,286

134,910(41,376)(23.5%)

Depreciation and amortization

43,722

55,76012,038

27.5%

Other adjustments(10,064)

2,918

12,982-Adjusted EBITDA

209,944

193,588(16,356)(7.8%)For more information on Yahoo Japan Corporation’s financial results and business operations, please refer to its website
at: https://about.yahoo.co.jp/ir/en/(d) Arm Segment
1. For the full year, net sales were almost flat yoy; the fourth quarter net sales were the highest in the year.
 Deterioration of global business conditions in the semiconductor industry resulted in a decline of technology
licensing revenue of 11.5% yoy and the lower growth rate of technology royalty revenue of 1.0% yoy, on a
U.S. dollar basis.
 Although net sales were almost flat yoy for the full year, they increased 11.3% yoy in the fourth quarter, on a
U.S. dollar basis, and were the highest in the year, due to delivery of a new next generation high-performance processor.
 The delay in signing new contracts following the establishment of a joint venture for the China business wasdispelled in the third quarter, and there has been no impact on a full-year basis.
2. Steadily increasing R&D capability to drive long-term growth Arm launched further processors developed for specific markets such as automotive and IoT; a direct resultof the strategy of accelerated R&D over the past two years.
 Arm continuously evaluates the mix of R&D projects in which it is investing to ensure that ROI is maximized.
(Millions of yen)

Fiscal year ended March 31
2019
2018

ChangeChange %Net sales

202,344

202,699355

0.2%

Segment income(31,380)

133,966

165,346-

Depreciation and amortization
Gain relating to loss of control
over subsidiaries

62,324

66,730

4,406

7.1%

-

(176,261)(176,261)-

Adjusted EBITDA

30,94424,435(6,509)(21.0%)

Note: Depreciation and amortization includes amortization expenses of ¥56,535 million for the fiscal year and ¥54,569 million forthe previous fiscal year. These expenses are related to intangible assets recognized in the purchase price allocation at the timeof the acquisition of Arm.

15

SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2019

OVERVIEW
Arm’s operations are primarily the licensing of semiconductor intellectual property (IP), including the designs of energyefficient microprocessors and associated technologies. Since becoming part of the Company, Arm has been accelerating
investment in research and development by hiring more engineers. With the expansion of its engineering capability, Armintends to develop new technologies faster, with a focus on artificial intelligence (AI), computer vision, and augmented
reality. Arm is also investing in creating new revenue streams from adjacent markets, especially in the Internet of Things(IoT).
In the fiscal year, Arm announced several new products that are a direct result of the accelerated R&D that Arm has
executed over the past two years. This has included:- Helium is the architecture used for Cortex-M processors which brings machine learning acceleration to tiny microcontrollers going into applications such as robotics and industrial automation.

- Pelion IoT platform that enables enterprises to seamlessly and securely connect and manage IoT devices and data at
any scale- Two new processors developed specifically for the safety-critical applications within automotive applications (Cortex-A76AE and Cortex-A65AE)- Neoverse family of processors developed for server and networking application.
· Amazon Web Services Inc. announced that the first generation of Neovese technologies will be used in their ownbuilt Graviton server chips, which would replace the previous generation of chips with a significant cost saving
for its customers.
· Introduced the Neoverse N1 and Neoverse E1 processors which significantly improve the performance capabilityof the family. The Neoverse N1 and Neoverse E1 processors are expected to appear in end applications in 2020
Net sales of the segment comprise (i) licenses to Arm technology, (ii) royalties arising from the resulting sale oflicensees’ products based on Arm technology, and (iii) revenues from the sale of software tools.

FINANCIAL RESULTS
Net sales increased ¥355 million (0.2%) year on year, to ¥202,699 million. This was due to the deterioration of global
business conditions in the semiconductor industry resulting in a decline of technology licensing revenue by 11.5% year
on year and the lower growth rate of technology royalty revenue of 1.0% year on year, on a U.S. dollar basis.
However, net sales increased 11.3% year on year in the fourth quarter, which marks high quarterly net sales for Arm.
This was due to delivery of next generation high-performance processor aimed at smartphones, tablets, and laptops,
resulting in strong technology licensing revenue.

Technology Licensing
Technology licensing revenue decreased year on year primarily due to a reduction in confidence within the semiconductor industry as a whole, resulting in Arm’s customers either delaying chip design starts or reducing R&D budgets.
As global business conditions in the semiconductor industry restores, Arm expects that the number of new chip designs
will increase, and companies will invest more in R&D.
The delay in signing new contracts following the establishment of a joint venture for the China business (see “Establishment of Joint Venture for the China Business” below), which resulted in a negative revenue impact in the first quarter

16

SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2019and second quarter, was dispelled in the third quarter leading to a recovery in revenue. There has been no impact onrevenue on a full-year basis.

Technology Royalties
Technology royalty revenue’s growth rate has slowed down due to a deceleration in semiconductor demand globally
including a weakening in global smartphone demand, especially in China, combined with a general slowdown in global
chip sales. Going forwards, royalty revenue growth will continued to be impacted by the slowdown in smartphonedemand, but the overall growth of royalty revenue is still expected to increase in the medium- to long-term as Arm gains
share in other secular growth markets such as networking, automotive, and IoT.

Software and Services
Software and services revenue, on a U.S. dollar basis, increased 51.6% year on year, due to the acquisition of Treasure
Data, Inc. and Stream Technologies Limited during the fiscal year.

(Net sales in U.S. dollars)
Net sales in this section are presented in U.S.-dollar terms as Arm’s revenue is primarily U.S. dollar-based.
(Millions of U.S. dollars)

Q1

Fiscal year ended March 31, 2018
Q2
Q3
Q4 Full year

Q1

Fiscal year ended March 31, 2019
Q2
Q3
Q4 Full year

Technology
licensing

149

123

190

156

618

85

124

125

213

547

Technology
royalties

250

271

297

269

1,087

261

285

305

247

1,098

Software andservices

29

28

33

36

126

35

47

56

53

191

Total net
sales

428

422

520

461

1,831

381

456

486

513

1,836

Segment income was ¥133,966 million, compared with a loss of ¥31,380 million in the previous fiscal year. Thiswas mainly attributable to the recognition of gain relating to the loss of control over subsidiaries of ¥176,261 million asother operating income, as a result of Arm Technology (China) Co., Ltd. (“Arm China”) becoming an associate accounted for using the equity method from a subsidiary, following the establishment of a joint venture of the China
business.
In the fiscal year, Arm continued to increase its R&D capacity, which included hiring more R&D engineers andsupport staff. As a result, operating expenses (cost of sales and selling, general and administrative expenses) increased¥11,225 million year on year. Arm’s head count increased net 101 people (1.7%) from the previous fiscal year-end,
despite the exclusion of 341 employees of Arm China from the head count upon June 26, 2018.
Arm will continue to strengthen its R&D capacity to build the technologies needed to meet the opportunities presented
by machine learning, IoT, autonomous vehicles, among others. In the meantime, to ensure that ROI is maximized, it

17SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2019will also continuously evaluate the mix of R&D projects in which it is investing, as well as the locations of the engineering teams. From time to time, some engineers and project team members are transferred onto other projects or
locations. Since the third quarter, Arm restructured some R&D projects and office locations, and consequently Arm’s
head count is becoming flattish from the second quarter to the fourth quarter. It is expected that Arm’s head count growth
will accelerate in the medium term, as Arm will continue to increase its R&D capacity through hiring engineers.
Adjusted EBITDA decreased ¥6,509 million (21.0%) year on year, to ¥24,435 million.

Establishment of Joint Venture for the China Business
On June 26, 2018, Arm sold 51% of its equity interest in its wholly owned Chinese subsidiary, Arm China, for $845
million to entities representing certain institutional investors and certain of Arm’s ecosystem partners in order toform a joint venture for Arm’s semiconductor technology IP business in China. As a result of this transaction, Arm
China is no longer considered as a subsidiary of the Company and has become an associate accounted for using theequity method. Accordingly, the Company recorded gain relating to loss of control over subsidiaries of ¥176,261
million.
Arm will continue to receive a significant proportion of all license, royalty, software, and service revenues arisingfrom Arm China’s licensing of Arm semiconductor products, and record them as net sales. Arm China’s labor costs
are no longer included after it became an associate. However, Arm’s business outside of China will continue toutilize services provided by Arm China employees, for which Arm pays as if Arm China was a subcontractor andrecord the cost in operating expenses. The net impact on segment income in the medium term is expected to beminor.

OPERATIONS
Licensing
Licenses signed
January 1 to March 31, 2019

Cumulative number of licenses signed
March 31, 2019

Classic (Arm7, Arm9, Arm11)-

499

Cortex-A

10363

Cortex-R

3

106

Cortex-M

14

539

Mali

5

187

Number of processor licenses signed

32

1,694

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

Arm signed 32 processor licenses during the fourth quarter, including four licenses for new technologies that Arm has
not yet announced, reflecting solid demand for Arm’s latest technology. Of the 20 customers signing new licenses, fivewere new customers purchasing their very first Arm processor license. The customers who signed licenses with Arm in
the fourth quarter intend to use Arm technology in a very broad range of end markets, including AI applications, consumer electronics, networking equipment, smartphones and virtual reality headsets.

18

SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2019

Royalty Units
The following analysis is based on the actual shipments of royalty units (chips incorporating Arm technology) by Arm
licensees for the three-month period ended December 31, 2018, as reported by licensees in royalty reports. Arm’s licensees report their actual shipments of royalty units one quarter in arrears; therefore, the current quarter’s royalty unit
analysis is based on chips shipped in the prior quarter. In contrast, royalty revenues are accrued in the same quarter thechips are shipped, based on estimates.
2017
Oct 1 toDec 31

20172018

Apr 1 toJun 31

Jul 1 toSep 30

Oct 1 toDec 31

Full year

Full year

Royalty units as reported by Arm’s licensees (billion)
5.8
5.5
5.6

6.2

5.6

21.3

22.9

Growth rate (yoy)

13.7%

Breakdown by processor family
Classic (Arm7,
Arm9, Arm11)
16%
Cortex-A
19%
Cortex-R
7%
Cortex-M
58%

Jan 1 toMar 31

2018

17.0%

10.7%

8.8%

(3.4%)

20.3%

7.5%

14%
20%
8%
58%

10%
21%
8%
61%

9%
18%
10%
63%

9%
19%
9%
63%

17%
18%
8%
57%

10%
20%
9%
61%

Arm’s licensees reported shipments of 5.6 billion Arm-based chips for the three-month period ended December 31,
2018. This is down 3.4% year on year and reflects the slowdown in the growth of smartphones combined with the overall
weakness in the semiconductor industry. For the full year, 22.9 billion Arm-based chips were reported as shipped, up
7.5% year on year.
Demand for Arm-based chips are expected to increase in the medium- to long-term as Arm gains share in other secular
growth markets such as networking, automotive, and IoT.

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

19

SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2019(e) SoftBank Vision Fund and Delta Fund Segment
1. Segment income of ¥1,256.6 billion
 Valuation gain of ¥1,378.6 billion from continuing investments: fair values of Uber, Guardant Health,
OYO,1 and other investments increased.
 Sale of Flipkart shares: gain of ¥146.7 billion
 Disposal of NVIDIA shares: total gain for the entire investment period (December 2016 to January 2019)was ¥306.8 billion, including gains from shares and collar transactions. A loss of ¥222.6 billion was recorded in the fiscal year due to share price fall, however, a gain of ¥177.4 billion was recorded as non-operating income resulting from hedging the share price fall through collar transactions.
2. Progress of investments at SoftBank Vision Fund
 Holds 69 investments at cost totaling $60.1 billion, with fair value amounting to $72.3 billion (excludingexited investments).8
 During the fiscal year, two investees, Guardant Health and Ping An Good Doctor, became publicly listed
issuers. Three investees, Uber, WeWork, and Slack, have filed documents related to initial public offerings.
OVERVIEWSoftBank Vision Fund began its operation in 2017. This fund aims to conduct large-scale, long-term investment incompanies and platform businesses that have the potential to bring about next-generation innovation. SoftBank Vision
Fund is managed by SBIA, a wholly owned subsidiary of the Company established in the U.K., which is registered at
the Financial Conduct Authority. The segment results include the results of the investment and operational activities of
SoftBank Vision Fund and Delta Fund, which is also managed by SBIA.
For details on the terms and conditions of distribution to limited partners in SoftBank Vision Fund and Delta Fund,and the terms and conditions of management fees and performance fees to SBIA, see “(2) Third-party interests in SoftBank Vision Fund and Delta Fund” and “(3) Management fees and performance fees to SBIA” under “3. SoftBank
Vision Fund and Delta Fund business” in (6) Notes to Consolidated Financial Statements” in “4. Consolidated Financial
Statements and Primary Notes.”
Outline of Funds in the Segment
As of March 31, 2019

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.

97.0

*1 *3

6.0 *3General partner

SoftBank Group Corp.: 33.1 *2Third-party investors: 63.9 *3
SVF GP (Jersey) Limited(The Company’s wholly owned overseas
subsidiary)

SoftBank Group Corp.: 4.4
Third-party investors: 1.6 *3
SB Delta Fund GP (Jersey) Limited(The Company’s wholly owned overseas
subsidiary)

Investment period

Until November 20, 2022 (in principle)

Until November 20, 2022 (in principle)

Minimum Fund life

Until November 20, 2029 (in principle)

Until September 27, 2029 (in principle)

Notes:
1. SoftBank Vision Fund completed a total of two closings in the third quarter. As a result, SoftBank Vision Fund accepted the participation of new limited partners and acquired additional committed capital totaling $5.3 billion.
2. The Company’s committed capital to SoftBank Vision Fund includes approximately $8.2 billion of an obligation to be satisfied byusing Arm Limited shares and $5.0 billion earmarked for use in an incentive scheme related to SoftBank Vision Fund.
3. 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.

20SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2019

FINANCIAL RESULTS(Millions of yen)

Fiscal year ended March 31
2018
2019
Gain and loss on investments at 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
Effect of foreign exchange translation
Operating expenses

ChangeChange %352,095
345,975
6,120(49,114)

1,302,838
296,5311,013,228
4,522(11,443)(46,197)

950,743296,531667,253(1,598)(11,443)
2,917

270.0%
192.9%(26.1%)(5.9%)

Segment income
Depreciation and amortization
Adjustments relating to investments
Unrealized loss (gain) on valuation of investments
Effect of foreign exchange translation*1
Other adjustments*2

302,9811

1,256,641
89953,66088

314.8%-(345,975)
20,502(1,013,228) (667,253)
11,443
11,443
172,154
151,652

192.9%
739.7%

Adjusted EBITDA(22,491)

427,099449,590-

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

(7,801)(33)(8,902)(33,141)
68
177,373(25,340)101
186,275

324.8%-(160,382)(248)(586,152)(232)(425,770)16

265.5%(6.4%)

Income before income tax

125,615

814,557

688,942548.5%

Note: The segment’s results are calculated as follows:
Segment income = gain and loss on investments at SoftBank Vision Fund and Delta Fund - operating expenses
Adjusted EBITDA = segment income (loss) + depreciation and amortization ± adjustments relating to investments in SoftBank
Vision Fund and Delta Fund (unrealized gain and loss on valuation of investments + effect of foreign exchange translation) ±other adjustments
Notes:
3. The amount arose from the different foreign currency exchange rates used for unrealized gain and loss and realized gain and loss.
4. Mainly derivative gain and loss recorded in relation to collar transactions utilizing NVIDIA shares.

Segment income was ¥1,256,641 million, compared with ¥302,981 million in the previous fiscal year. This was
mainly due to an unrealized gain of ¥1,378,553 million recorded for continuing investments due to an increase in thefair values of Uber, Guardant Health, OYO,1 and other investments, and a realized gain of ¥146,682 million recordedon the sale of Flipkart shares. Conversely, a loss of ¥222,628 million was recorded for the investment in NVIDIA.
The total gain on investment in NVIDIA for the entire investment period (December 2016 to January 2019) was¥306,809 million (before deducting third-party interests). A gain of ¥365,325 million was recorded in the previous fiscal
year consistent with NVIDIA’s share price increase, while a loss of ¥222,628 million was recorded in the fiscal year
consistent with its share price drop until the investment was disposed of in January 2019. On the other hand, derivative
gain of ¥168,471 million, the total amount for the previous fiscal year and the fiscal year, was recorded as non-operating
income, as a result of collar transactions conducted to hedge the share price drop. For more information, see “Investment
in NVIDIA” below.

21

SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2019

Continuing investments
Unrealized gain on valuation from continuing investments of ¥1,378,553 million was recognized mainly due to an unrealized gain totaling ¥1,485,410 million, which was recorded for investments whose fair value increased during the
fiscal year, including Uber, Guardant Health, and OYO.1 Fair value of the investment in Uber increased ¥418,140 million,
resulting from SBIA’s revised fair value calculation taking into account market expectations, including with regards tothe anticipated initial public offering. Fair value of the investment in Guardant Health increased ¥203,412 million, consistent with its share price increase during the fiscal year. Fair value of the investment in OYO increased ¥154,189
million, resulting from SBIA’s revised fair value calculation taking into account concluded fund raising and transactions
occurring in the fiscal year. Conversely, unrealized loss totaling ¥106,857 million was recorded for Zhongan Online
P&C Insurance Co., Ltd,1 and other investments.

(Fair value changes in the fiscal year of investments held by SoftBank Vision Fund, U.S. dollar-based)
Comparison between fair values at the fiscal year-end with the acquisition values of the investments acquired in thefiscal year, or with the initial carrying amounts of the fiscal year for the investments acquired in the previous fiscal year
Fair value increase

29 investments

Fair value decrease

12 investments

No change in fair value

28 investments

Investment in Flipkart
Realized gain on sale of Flipkart of ¥146,682 million was recognized following the completion of the sale of Flipkart
shares to WAL-MART INTERNATIONAL HOLDINGS, INC. in August 2018, based on the sales value of approximately $4.0 billion, net of amount deposited in escrow account, 9 etc. Capital gains on investments in entities that operatebusinesses in India are subject to tax in India. Consequently, outside segment income, current taxes of ¥64,892 million
were recorded for the aforementioned realized gain in Flipkart, which mainly operates businesses in India. As a resultof the sale of Flipkart shares occurring within 24 months of making the investment, the sale taxed at 43.68%, the Indianshort-term capital gains tax rate.
Investment in NVIDIA
Anticipating the start of operations of SoftBank Vision Fund in 2017, the Company acquired NVIDIA shares in December 2016 for $2,834 million. SoftBank Vision Fund acquired NVIDIA shares for the same amount from the Company
in September 2017 after the start of its operations. The fund hedged the fall in NVIDIA’s share price through collartransactions using the shares, and subsequently monetized the shares (the proceeds from which were recorded as borrowings). In January 2019, the fund executed an early unwind of the collar transactions, and elected to deliver NVIDIA
shares for the repayment of borrowings. NVIDIA shares that were not utilized in the collar transactions were sold entirely in January 2019. As a result, gain on this investment was $2,915 million.
Of this $2,915 million, valuation gain and realized gain due to NVIDIA’s share price change were $1,450 million,
and derivative gain from being able to hedge losses due to its falling share price through collar transactions was $1,465
million. In the consolidated statement of income, the former was recorded in the fiscal years ended March 2017, March
2018, and March 2019 ((A) in the table below), and the latter was recorded for the fiscal years ended March 2018 andMarch 2019 ((B) below).

22

SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2019

(Primary gain and loss related to NVIDIA shares)(Millions of U.S. dollars)

Fiscal year ended March 31
2017
2018
2019

(Millions of yen)

Total

2017

Fiscal year ended March 31
2018
2019

Total

Valuation gain and realized gain due to shareprice change (A)

93 *1

3,296

(1,939)1,450(4,359) *1

365,325(222,628)

138,338

Derivative gain andloss (B)

-

(85)

1,550

1,465

-

(8,902)

177,373

168,471

Total gain and loss
(before deducting
third-party interests)

93

3,221

(389)

2,915

(4,359)356,423(45,255)

306,809

Impact on segment
income-3,296(1,939)1,357-

365,325(222,628)

142,697

Impact on adjusted
EBITDA

-

-

2,915

2,915

-

-

322,003

322,003Note:
1. For the fiscal year ended March 2017, which was before the start of operations of SoftBank Vision Fund, a gain of $93 million (aloss of ¥4,359 million in yen terms due to the exchange translation) consistent with changes in NVIDIA’s share price was recorded
as gains and losses from financial instruments at FVTPL under non-operating income and loss.

Adjusted EBITDA was ¥427,099 million, compared with negative ¥22,491 million in the previous fiscal year.

Capital Deployment
As of March 31, 2019
(Billions of U.S. dollars)

Total
Committed capital (A)SoftBank Vision Fund
Delta FundContributions from limited partners10
SoftBank Vision Fund
Delta Fund

Third-party
investors

97.0
6.0

33.1
4.4

63.9
1.6

50.9
5.1

17.5
3.7 11

33.4
1.4

(2.5)

(0.9)

(1.6)

46.1
0.9

15.6
0.7

30.5
0.2

(B)

Non-recallable contribution12 included in (B)SoftBank Vision Fund
Remaining committed capital
SoftBank Vision Fund *2
Delta Fund13

The Company *1(C) = (A) - (B)Note: Investment in DiDi, which was held by Delta Fund, has been sold to SoftBank Vision Fund in the fourth quarter via promissory
note. As the promissory note is expected to be settled in the three-month period ending September 30, 2019, this transaction
has not been reflected in the capital deployment presented above as of March 31, 2019.
Notes:
1. The Company’s committed capital includes approximately $8.2 billion of obligation to be satisfied by using 24.99% of Arm Limited shares. The obligation was entirely satisfied by the end of the third quarter, resulting in SoftBank Vision Fund holding all of
the applicable Arm Limited shares. The Company’s committed capital also includes $5.0 billion that is earmarked for use in an
incentive scheme related to SoftBank Vision Fund.
2. The amount of distribution to limited partners resulting from disposal of NVIDIA shares is included in remaining committed capital
as it is recallable.

23SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2019

Portfolio (as of March 31, 2019; excluding exited investments)
Cumulative acquisition cost of investments: $60.1 billion *1
Total fair value of investments: $72.3 billion *1
SectorConsumer

Name (in alphabetical order)
◎
◎
◎
◎◆
◎◆
◆
◎◆
◎

Enterprise◎◎◎

Fintech◎◆◎◎□Frontier Tech◎◎◆
Health Tech

◎◆
□◆

□
◎

◎◆

Brainbees Solutions Private Limited (First Cry)
Brandless, Inc.
Bytedance Ltd.
Coupang LLC
Fanatics Holdings, Inc.
Grofers International Pte. Ltd.
Oravel Stays Private Limited (OYO) (and its two affiliates)
Plenty United Inc.
PT Tokopedia
Wag Labs, Inc.
Zuoyebang Education Limited
1 other investment
AutomationAnywhere, Inc.
Cohesity, Inc.
Globality, Inc.
MapBox Inc.
OSIsoft LLC
Slack Technologies, Inc.
Kabbage, Inc.
OakNorth Holdings Limited
One97 Communications Limited (PayTM）
OneConnect Financial Technology Co., Ltd.
Zhongan Online P&C Insurance Co., Ltd. (and its one affiliate)
Arm Limited
Brain Corporation
Improbable Worlds Limited
Light Labs, Inc.
Petuum Holdings Ltd.
2 other investments
10x Genomics, Inc.
Guardant Health, Inc. (and its one affiliate)
HealthKonnect Medical and Health Technology Management Company Limited(Ping An Medical and Healthcare)
Ping An Healthcare and Technology Company Limited (Ping An Good Doctor)
Relay Therapeutics, Inc.
Roivant Sciences Ltd.
Vir Biotechnology, Inc.
Zymergen, Inc.

24

SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2019

SectorReal Estate &Construction

Name (in alphabetical order)◎◎◎

Transportation &Logistics

◎
◎
◎◆
◎◆
◎
◎◆
◎◆
◎◆
◎
◎
◎
◎◆
◎◆
◎◆
◎

CLUTTER INC.
Katerra Inc. (and its one affiliate)
OpenDoor Labs, Inc.
Urban Compass, Inc. (Compass)
View Inc.
WeWork Companies Inc. (and its three affiliates)
Auto1 Group GmbH
Cambridge Mobile Telematics Inc.
Delhivery Private Limited
Doordash, Inc.
Fair Financial Corp.
Full Truck Alliance Co. Ltd
Getaround, Inc.
GM Cruise Holdings LLC
GRAB HOLDINGS INC. (Grab)
Local Services Holding Limited (Alibaba Local Services)
Loggi Technology International
Nauto, Inc.
Nuro, Inc.
ParkJockey Global, Inc.
Uber Technologies, Inc. (Uber)
Xiaoju Kuaizhi Inc. (DiDi)
Zume, Inc.
Total of 69 investments

SectorConsumerEnterprise
FintechFrontier Tech
Health Tech
Real Estate & Construction
Transportation & Logistics
Total

Acquisition cost
8.6
1.8
2.6
9.8
3.1
7.7
26.5
60.1

(Billions of U.S. dollars)
Fair value
Change
10.8
2.4
3.1
10.2
5.0
9.7
31.1
72.3

2.2
0.6
0.5
0.4
1.9
2.0
4.6
12.2

◎ New investments during the fiscal year
◆ Investments acquired from sale by the Company (see “INVESTMENTS ACQUIRED FROM SALE BY THE COMPANY” below)□ Listed securities
Note:
1. SoftBank Vision Fund made some investments through investment holding entities that are subsidiaries, but not wholly owned
subsidiaries, of the fund. All investments made through the investment holding entities are calculated as investments made by
SoftBank Vision Fund. As of the fiscal year-end, a wholly owned subsidiary of the Company is a shareholder of such subsidiaries.
Of the acquisition cost of investments made by SoftBank Vision Fund, $1.2 billion belongs to this wholly owned subsidiary; of thefair values, $1.7 billion belongs to this wholly owned subsidiary.

In the fourth quarter, SoftBank Vision Fund acquired the investment in DiDi for $5.0 billion, which had been acquiredand held by Delta Fund since September 2017, from the sale by Delta Fund. SoftBank Vision Fund also acquired theinvestment in DiDi for $6.8 billion, which had been acquired and held by the Company through several transactions

25

SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2019

since January 2015, from the sale by the Company. For the investments initially acquired by the Company, see the table
in “INVESTMENTS ACQUIRED FROM SALE BY THE COMPANY” below. Both of these transactions were via
promissory notes, and the promissory notes are expected to be settled in the three-month period ending September 30,
2019.

INVESTMENTS ACQUIRED FROM SALE BY THE COMPANY
In addition to direct purchase, some investments of SoftBank Vision Fund are acquired from sale by the Company, but
only if they are in accordance with the fund’s investment eligibility criteria. There are two types of investments that
could be sold to SoftBank Vision Fund: (A) Investments that were acquired by the Company on the premise of offering
the investment to SoftBank Vision Fund and that were in accordance with the investment eligibility criteria of the fundat the time of acquisition (“Bridge Investments”) and (B) other investments. Examples of (B) include investments thatwere made without the premise of offering the investment to SoftBank Vision Fund at the time of acquisition, or, investments that were made with the premise of offering the investment to the fund but were not in accordance with theinvestment eligibility criteria of the fund at the time of acquisition and therefore require consent from the limited partners
for selling to the fund.
The Company recognizes that the transfer of such investments is agreed, at the timing when consent from the investment committee and other bodies (and certain limited partners if applicable) at SoftBank Vision Fund and approvals
from relevant regulatory authorities are obtained. Sales of these investments are made at the fair value at the time theCompany made its decision at its applicable authority to offer the transfer, and this value will be the acquisition cost for
SoftBank Vision Fund. These investments are presented as investments of SoftBank Vision Fund in the Company’s
consolidated financial statements, after the Company recognizes that the transfer is agreed.
As for investments transferred during the fiscal year, the differences between the carrying amounts at the beginningof the fiscal year (or the acquisition cost during the fiscal year) and the sale values were recorded in non-operating
income of the Company’s consolidated statement of income, while the changes in fair values from the sale values (theacquisition value for SoftBank Vision Fund) were recorded in segment income of the SoftBank Vision Fund and Delta
Fund 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.

(Investments Acquired from Sale by the Company in the Fiscal Year)In the fiscal year, the Company sold the investments shown below to SoftBank Vision Fund. The sale price is based on
the fair value at the time the Company made its decision at its applicable authority to offer the transfer.
(Billions of U.S. dollars)

Acquisition value by
the Company

Sale value by the Company to SVF(Acquisition value by SVF)

Uber Technologies, Inc. (Uber)
Xiaoju Kuaizhi Inc. (DiDi)
Others

7.7

7.7

5.9

6.8

5.2

5.3

Total of 18 investments

18.8

19.8

Note: The above table presents investments whose sale value were above $5 billion, in order of the amount of value.

26

SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2019

Portfolio of Delta FundAs a result of the sale of investment in DiDi to SoftBank Vision Fund, there is no investments held in Delta Fund as ofMarch 31, 2019.

(f) Brightstar Segment(Millions of yen)

Fiscal year ended March 31
2018
2019

ChangeChange %1,075,020

1,082,669

7,649

0.7%

(44,634)(23,396)

21,238-Depreciation and amortization

5,613

5,929

316

5.6%

Other adjustment

50,497-(50,497)-

Adjusted EBITDA

11,476(17,467)(28,943)-

Net sales
Segment income(g) Other and Reconciliation(Millions of yen)

Net sales
Segment income
Depreciation andamortization
Other adjustment
Adjusted EBITDA

Other97,626(21,835)
13,655(5,042)(13,222)

Fiscal year ended March 31
2018
2019
Reconciliation
Other Reconciliation(303,122) 193,742(298,900)(41,617) (90,053)(63,572)
1,508
1,577
(38,532)

36,776
16,315(36,962)699（62,873)

ChangeOther Reconciliation
96,116
4,222(68,218)(21,955)
23,121
21,357(23,740)(809)(1,577)(24,341)

Other segment loss was ¥90,053 million, compared with loss of ¥ 21,835 million in the previous fiscal year. This was
mainly due to operating loss of ¥36,559 million at PayPay Corporation, which is engaged in smartphone payment services in Japan, as a result of its proactive measures to increase the number of users and stores where its services areusable.

27

SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2019(2) Overview of Financial Position
1. Disposal of 33.50% of SoftBank Corp. shares Received proceeds of ¥2.3 trillion. Capital surplus increased ¥1.2 trillion.
 Repurchased own shares for ¥384.1 billion; used approximately ¥700 billion to strengthen financial position
through repayment of debt.
2. Status of investments
 Balance of investments from SoftBank Vision Fund of ¥7.1 trillion, up ¥4.3 trillion from the previous fiscal
year-end- 54 investments totaling $33.9 billion were acquired in the fiscal year, including Uber, DiDi, and Grab1(including acquisitions from the Company).
- The fair values of investments increased.
- Exited investments: NVIDIA, Flipkart
 Balance of investment securities (investments outside the fund) of ¥924.6 billion, down ¥1.7 trillion from theprevious fiscal year-end(Millions of yen)March 31, 2018

March 31, 2019

ChangeChange %Total assets

31,180,466

36,096,476

4,916,010

15.8%

Total liabilities

24,907,444

27,087,272

2,179,828

8.8%

Total equity

6,273,022

9,009,204

2,736,182

43.6%

Reference: Exchange rate at the fiscal year-end used for translations
USD / JPY

¥106.24¥110.99

¥4.75

4.5%

GBP / JPY

¥148.84¥144.98¥(3.86)(2.6%)(a) Current Assets(Millions of yen)March 31, 2018

March 31, 2019

ChangeCash and cash equivalents
Trade and other receivables
Other financial assets
Inventories
Other current assets
Assets classified as held for sale

3,334,650
2,314,353
519,444362,041
344,374-

3,858,518
2,339,977
203,476
365,260
766,556
224,201

523,868
25,624(315,968)
3,219
422,182
224,201

Total current assets

6,874,862

7,757,988

883,126

Primary components of the change
Components and balance
Cash and cash equivalents¥3,858,518 million

Changes from the previous fiscal year-end and main reasons
See “(3) Overview of Cash Flows” for details.

Other current assets¥766,556 million¥422,182 million increase
This mainly reflects the recording of an expected withholding tax refund of¥422,648 million on dividends from SoftBank Group Japan Corporation to SoftBank Group Corp.

Assets classified as held forsale¥224,201 million¥224,201 million increase
As the Company plans to use shares for the settlement of a variable prepaid forward
contract for Alibaba shares in June 2019, the Alibaba shares under this contract
were transferred from investments accounted for using the equity method.

28

SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2019(b) Non-current Assets(Millions of yen)March 31, 2018

March 31, 2019

Change3,856,847
4,302,553
6,784,550
2,328,617

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

213,857
18,914
107,645
384,076
312,428

Investment securities
Other financial assets
Deferred tax assets
Other non-current assets

2,827,784
2,660,115
676,392
647,514221,232

7,115,629
924,614
1,185,856
586,943
215,959

4,287,845(1,735,501)
509,464(60,571)(5,273)

Total non-current assets

24,305,604

28,338,488

4,032,884

Property, plant and equipment
Goodwill
Intangible assets
Costs to obtain contracts
Investments accounted for using the equity method
Investments from SoftBank Vision Fund and Delta
Fund accounted for using FVTPL

Primary components of the change
Components and balance
Changes from the previous fiscal year-end and main reasons
Property, plant and equipment ¥213,857 million increase
Capital expenditures for the 5G network and leased mobile devices for custom¥4,070,704 million
ers increased at Sprint. Meanwhile, telecommunications equipment was regularly depreciated at SoftBank Corp.
Intangible assets¥6,892,195 million¥107,645 million increase· FCC licenses increased ¥194,529 million due to a weaker yen against the U.S.
dollar.
· Mainly due to regular amortization, customer relationships of Sprint and Arm
decreased ¥83,416 million and Arm’s technologies decreased ¥49,719 million.

Costs to obtain contracts¥384,076 million

Costs to obtain contracts at SoftBank Corp. and Sprint were newly recorded dueto the adoption of the new standards.

Investments accounted forusing the equity method¥2,641,045 million¥312,428 million increase
Alibaba’s consolidated carrying amount increased due to the recording of income on equity method investments. A consolidated carrying amount of ¥86,596
million was newly recorded as Arm China became an equity method associate.
On the other hand, the Alibaba shares under a variable prepaid forward contract
for Alibaba shares were transferred to current assets.

Investments from SoftBank
Vision Fund and Delta Fund
accounted for using FVTPL¥7,115,629 million¥4,287,845 million increase· Newly acquired investments totaling $33.9 billion, including Uber, DiDi,
Grab, and GM Cruise Holdings LLC (“GM Cruise”). Of these, a total of 18 investments (sale value totaling $19.8 billion) were acquired from sale by theCompany.
· The fair values of Uber, Guardant Health, OYO,1 and other investments increased.
· The fund disposed of NVIDIA shares and sold Flipkart shares.

Investment securities¥924,614 million¥1,735,501 million decrease· Investments including Uber, DiDi, and Grab (total carrying amounts of¥1,832,387 million at the previous fiscal year-end) that were sold to SoftBank
Vision Fund were reclassified as investments from SoftBank Vision Fund andDelta Fund accounted for using FVTPL.

Other financial assets¥1,185,856 million¥509,464 million increase· Convertible promissory note issued by WeWork and advances received related
to the acquisition of WeWork shares totaling ¥275,477 million were recorded.

29SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2019(c) Current Liabilities(Millions of yen)March 31, 2018

March 31, 2019

Change3,217,405
1,485,851

3,480,960
1,219,305

263,555(266,546)

Short-term borrowings
Current portion of long-term borrowings
Current portion of corporate bonds
OthersSoftBank Corp.

771,275
214,747
399,829
100,000
803,055

398,200
79,597
699,508
42,000877,583(373,075)(135,150)
299,679(58,000)
74,528Current portion of long-term borrowings
Current portion of lease obligations
OthersSprint393,916
393,282
15,857364,245469,337
400,6457,601
505,71675,421
7,363(8,256)
141,471

Current portion of long-term borrowings
Current portion of corporate bonds
OthersSoftBank Vision Fund

164,466
190,396
9,383
397,095

158,658
337,745
9,313
36,571(5,808)147,349(70)(360,524)

Short-term borrowings
Current portion of long-term borrowings
Others

83,952
313,143
167,159

36,571
841,785(47,381)(313,143)
674,626

Current portion of financial liabilities relating to sale of shares by variable prepaid forward contract
Others
Deposits for banking business

167,159
684,091

730,601
111,184
745,943

730,601(55,975)
61,852

Third-party interests in SoftBank Vision Fundand Delta Fund
Trade and other payables
Derivative financial liabilities
Other financial liabilities
Income taxes payables
Provisions
Other current liabilities

40,713
1,816,010
96,241
1,646
147,979
65,709658,961

29,677
1,909,608
767,714
10,849534,906
43,685
1,158,355(11,036)
93,598671,473
9,203
386,927(22,024)499,394

Total current liabilities

6,728,755

8,681,697

1,952,942

Interest-bearing debt
SoftBank Group Corp.3

30

SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2019

Primary components of the change
Components and balance

Changes from the previous fiscal year-end and main reasonsInterest-bearing debt
¥3,480,960 million¥263,555 million increase

SoftBank Group Corp.3¥1,219,305 million¥266,546 million decrease· Due to repayments, short-term borrowings decreased ¥373,075 million andcurrent portion of long-term borrowings decreased ¥135,150 million.
· Current portion of corporate bonds increased ¥299,679 million as corporate
bonds that would mature within a year were transferred from non-current liabilities, while certain domestic straight corporate bonds were redeemed uponmaturity.

SoftBank Vision Fund
¥36,571 million¥360,524 million decrease
Borrowings using NVIDIA shares through collar transactions were settled withthe shares for repayment.

Others¥841,785 million¥674,626 million increase
As the settlement date of a variable prepaid forward contract for Alibaba sharesbecame due within a year, the related financial liabilities were transferred from
non-current liabilities.

Derivative financial liabilities¥767,714 million¥671,473 million increase
Derivative liabilities relating to the embedded collar transaction in the variable
prepaid forward contract for Alibaba shares were transferred from non-current
liabilities.

Income taxes payables¥534,906 million¥386,927 million increase
This mainly reflects the recording of an amount equivalent to taxes payable forthe gain on disposal that arose at seller SoftBank Group Japan Corporation as aresult of the disposal of SoftBank Corp. shares.

Other current liabilities¥1,158,355 million¥499,394 million increase
This mainly reflects the recording of an expected withholding income tax payment of ¥422,648 million on dividends from SoftBank Group Japan Corporation to SoftBank Group Corp.

31

SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2019(d) Non-current Liabilities(Millions of yen)March 31, 2018

March 31, 2019

Change13,824,783
7,732,330

12,204,146
5,495,645(1,620,637)(2,236,685)

Long-term borrowings
Corporate bonds
SoftBank Corp.

3,215,459
4,516,871
896,435

1,418,764
4,076,881
2,309,035(1,796,695)(439,990)
1,412,600

Long-term borrowings
Lease obligations
OthersSprint217,514
670,862
8,059
3,979,705

1,646,349
662,686
3,922,662

1,428,835(8,176)(8,059)(57,043)

Long-term borrowings
Corporate bonds
OthersSoftBank Vision Fund
Others

1,346,576
2,612,178
20,951
101,312
1,115,001

1,571,545
2,336,904
14,213476,804

224,969(275,274)(6,738)(101,312)(638,197)

Interest-bearing debt
SoftBank Group Corp.3

Financial liabilities relating to sale of shares by
variable prepaid forward contract
OthersThird-party interests in SoftBank Vision Fund and Delta
Fund
Derivative financial liabilities
Other financial liabilities
Defined benefit liabilities
Provisions
Deferred tax liabilities
Other non-current liabilities

688,332
426,669

476,804(688,332)
50,135

1,803,966
865,40262,372
100,486
132,139
1,085,626
303,915

4,107,288
130,545
57,11599,351
157,478
1,391,072
258,580

2,303,322(734,857)(5,257)(1,135)25,339305,446(45,335)

Total non-current liabilities

18,178,689

18,405,575

226,88632

SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2019

Primary components of the change
Components and balance

Changes from the previous fiscal year-end and main reasonsInterest-bearing debt
¥12,204,146 million¥1,620,637 million decrease

SoftBank Group Corp.3¥5,495,645 million¥2,236,685 million decrease· Long-term borrowings decreased ¥1,796,695 million.
SoftBank Group Corp. repaid a portion of its senior loan before maturity by using¥1.6 trillion, which was received from SoftBank Corp. as repayment of its borrowings from the company, as part of the preparations to list SoftBank Corp.
shares.
Borrowings made through a wholly owned subsidiary Skywalk Finance GK using
Alibaba shares3 decreased ¥285,161 million. (Additional borrowings of ¥161,084
million and repayment of ¥475,797 million were made in the fiscal year. Balanceat the fiscal year-end: ¥557,152 million)· Corporate bonds decreased ¥439,990 million.
Corporate bonds of ¥700 billion were transferred to current liabilities as they became due within a year. In addition, foreign currency-denominated senior notes
totaling ¥357.6 billion were redeemed before maturity and a portion was repurchased for ¥106.2 billion ($410 million and €520 million). On the other hand,
corporate bonds totaling ¥722.7 billion were issued.

SoftBank Corp.
¥2,309,035 million¥1,412,600 million increase
SoftBank Corp. made new borrowings of ¥1.6 trillion through a senior loan as partof its preparations for listing and subsequently repaid part of this loan.

Others¥476,804 million¥638,197 million decrease
Financial liabilities related to the variable prepaid forward contract for Alibaba
shares were transferred to current liabilities.

Third-party interests in
SoftBank Vision Fund andDelta Fund
¥4,107,288 million¥2,303,322 million increase

Derivative financial liabilities¥130,545 million¥734,857 million decrease
Derivative liabilities relating to the embedded collar transaction in the variable prepaid forward contract for Alibaba shares were transferred to current liabilities.

See “(2) Third-party interests in SoftBank Vision Fund and Delta Fund” under “3.
SoftBank Vision Fund and Delta Fund business” in “(6) Notes to Consolidated Financial Statements” in “4. Consolidated Financial Statements and Primary Notes”
for details of changes.

33SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2019(e) Equity(Millions of yen)March 31, 2018

March 31, 2019

ChangeCommon stock

238,772

238,772-

Capital surplus

256,768

1,467,762

1,210,994

Other equity instruments

496,876

496,876-

Retained earnings

3,940,259

5,571,285

1,631,026

Treasury stock(66,458)(443,482)(377,024)

Accumulated other comprehensive income

317,959

290,268(27,691)

Available-for-sale financial assets

63,700-(63,700)

Equity financial assets at FVTOCI

-

6,661

6,661

Debt financial assets at FVTOCI

-

267

267

(55,286)(45,791)

9,495

309,545

329,131

19,586

Total equity attributable to owners of the parent

5,184,176

7,621,481

2,437,305

Non-controlling interests

1,088,846

1,387,723

298,877

Total equity

6,273,022

9,009,204

2,736,182

16.6%

21.1%

4.5 ppCash flow hedges
Exchange differences on translating
foreign operations

Ratio of equity attributable to owners of the parent

Primary components of the change
Components and balance

Changes from the previous fiscal year-end and main reasons

Capital surplus¥1,467,762 million¥1,210,994 million increase
Capital surplus increased due to the disposal of SoftBank Corp. shares by awholly owned subsidiary of the Company.

Retained earnings¥5,571,285 million¥1,631,026 million increase
Net income attributable to owners of the parent of ¥1,411,199 million was recorded. The cumulative impact of adopting the new standards of ¥300,615 million was recorded on April 1, 2018.

Treasury stock¥(443,482) million¥377,024 million decrease
The Company repurchased its own shares for ¥384.1 billion.

Accumulated other comprehensive income¥290,268 million¥27,691 million decrease· The cumulative impact of adopting the new standards of ¥57,828 million
was reclassified as retained earnings on April 1, 2018
· Exchange differences on translating foreign operations increased ¥19,586
million. The yen depreciated against the U.S. dollar while it appreciatedagainst the British pound.

34

SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2019(3) Overview of Cash Flows
1. Proceeds of ¥2.3 trillion from the disposal of SoftBank Corp. shares were utilized for shareholder returns
and strengthening of financial position.
 Shareholder returns: ¥384.1 billion has been used for share repurchase as of the fiscal year-end, of a maximum
allowance of ¥600.0 billion.
 Strengthening of financial position: reduced debt by approximately ¥700.0 billion, including a ¥106.2 billion
repurchase of outstanding foreign currency-denominated senior notes and repayment of borrowings of ¥475.8
billion made using Alibaba shares.
2. Dissolution of debtor-creditor relationship between SoftBank Group Corp. and SoftBank Corp. prior tolisting of SoftBank Corp.
 SoftBank Corp. implemented borrowings through a senior loan of ¥1.6 trillion and repaid the same amountborrowed from SoftBank Group Corp.
 SoftBank Group Corp. used the entire ¥1.6 trillion to partially repay its senior loan before maturity.
3. Cash flow related to SoftBank Vision Fund
 Contributions from third-party investors of ¥2.1 trillion (cash flows from financing activities);
payments for acquisition of investments of ¥1.6 trillion (cash flows from investing activities)
 Impact in the fiscal year from exits from two investments- Proceeds from sales of investments of ¥428.9 billion (cash flows from investing activities): proceeds from thesale of Flipkart shares and disposal of NVIDIA shares that were not utilized in the collar transactions- Distribution/repayment to third-party investors of ¥486.4 billion (cash flows from financing activities):
distributed the proceeds from sales and monetization through borrowings to third-party investors(Millions of yen)

Fiscal year ended March 31
2018
2019

ChangeCash flows from operating activities

1,088,623

1,171,864

83,241

Cash flows from investing activities(4,484,822)(2,908,016)

1,576,806

Cash flows from financing activities

4,626,421

2,202,291(2,424,130)(a) Cash Flows from Operating Activities
Cash flows from operating activities increased ¥83,241 million year on year. While net income increased ¥216,806
million year on year, this included an increase in non-cash income such as unrealized gain on valuation of investments
at SoftBank Vision Fund.
(b) Cash Flows from Investing Activities
Primary components for the fiscal year
Components
Outlays for purchase of property, plant andequipment and intangible assets¥(1,364,954) million

Primary details

Payments for acquisition of investments¥(822,628) million

A wholly owned subsidiary of the Company invested a total of $1.5
billion in WeWork.
“Payments for acquisition of investments” includes the total acquisition cost by the Company of ¥187,634 million for six investmentsthat were initially acquired by the Company and sold to SoftBank
Vision Fund during the fiscal year, such as GM Cruise and Doordash, Inc.

Sprint acquired telecommunications equipment and leased devices.
SoftBank Corp. acquired telecommunications equipment.

35

SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2019

Components
Payments for acquisitions of investment by
SoftBank Vision Fund and Delta Fund¥(1,576,790) million

Primary details
SoftBank Vision Fund made new investments.
For investments made in the fiscal year, see “Portfolio” under “(e)SoftBank Vision Fund and Delta Fund Segment” in “b. Results by
Segment” in “1. Results of Operations.” Investments that were acquired from sale by the Company are recorded as “Payments for acquisition of investments” at the time of the Company’s acquisition.

Proceeds from sale of investments by
SoftBank Vision Fund and Delta Fund
¥428,865 million

SoftBank Vision Fund sold Flipkart shares and NVIDIA shares thatwere not utilized in the collar transactions.

(c) Cash Flows from Financing Activities
Primary components for the fiscal year
Component
Proceeds from interest-bearing debt
¥6,189,112 million
Proceeds from borrowings*¥4,959,821 million

Proceeds from issuance of bonds¥747,744 million
Repayment of interest-bearing debt¥(7,128,379) million
Repayment of borrowings*¥(5,526,771) million

Redemption of corporate bonds¥(1,061,732) million

Primary details· In preparation for listing, SoftBank Corp. borrowed ¥1.6 trillion
through a senior loan. The proceeds from the senior loan were used
to repay its borrowings from SoftBank Group Corp., which waseliminated as an intercompany transaction.
· Sprint implemented borrowings through the securitization of receivables and term loans.
· SoftBank Group Corp. borrowed ¥161,084 million by using
Alibaba shares, through a wholly owned subsidiary.
SoftBank Group Corp. issued corporate bonds totaling ¥722.7 billion
for redemption of bonds.

· SoftBank Group Corp. used all of the ¥1.6 trillion repayment received from SoftBank Corp. to partially repay its senior loan before
maturity. The company also repaid borrowings of ¥475,797 million
made through using Alibaba shares.
· Sprint and SoftBank Corp. repaid borrowings that were mainly
made by securitizing receivables.
· SoftBank Group Corp. redeemed corporate bonds totaling ¥757.6
billion, including early redemption, and repurchased a portion ofoutstanding foreign currency-denominated senior notes for ¥106.2
billion.
· Sprint redeemed corporate bonds of $1.8 billion at maturity.

Contribution to SoftBank Vision Fund andDelta Fund from third-party investors¥2,133,682 million

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

Distribution/repayment from SoftBank
Vision Fund and Delta Fund to thirdparty investors¥(486,388) million

SoftBank Vision Fund made distributions and repaid the principal forinvestments to third-party investors from the sale of Flipkart sharesand the disposal of NVIDIA shares.

Purchase of treasury stock¥(384,102) million

SoftBank Group Corp. repurchased its own shares.

36SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2019

Component
Proceeds from the partial sales of shares ofsubsidiaries to non-controlling interests¥2,350,262 million

Primary details
Proceeds of ¥2,349,832 million were received from the disposal of a
portion of SoftBank Corp. shares.

Purchase of shares of subsidiaries from
non-controlling interests¥(229,818) million

SoftBank Corp. acquired shares of Yahoo Japan Corporation from
Altaba Inc. through a tender offer.

Note:
1. Proceeds from borrowings and repayments of borrowings include proceeds of ¥945,737 million and outlays of ¥1,397,796 million, respectively, related to borrowings with a contracted term of one year or less.

(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.

Notes for “1. Results of Operations”
1 The names of the investments of SoftBank Vision Fund are presented in the order of the size of the investments’ impact on the Com-pany’s financial results, unless otherwise stated.
2 To enable investors to appropriately understand and assess the Company’s management performance, the Company has presented

operating income arising from SoftBank Vision Fund and Delta Fund separately from that of other segments in a subcategory underoperating income as “Operating income from SoftBank Vision Fund and Delta Fund.”
3 The presentation of the interest-bearing debt and finance cost of SoftBank Group Corp. includes borrowings made by Skywalk Finance
GK, a wholly owned subsidiary of the Company, using Alibaba shares. The borrowings are not guaranteed by SoftBank Group Corp.,
hence non-recourse to the company.
4 In its consolidated statement of income, the Company applies the equity method to the financial statements of Alibaba on a threemonth time lag, as it is impracticable to conform the reporting period of Alibaba due to the contract with Alibaba, among other reasons.
However, the Company performs necessary adjustments for material transactions or events that arise during the lag period and which
are publicly announced by Alibaba.
5 Other adjustments of the Sprint segment primarily include gain and loss from non-recurring factors, such as gain on spectrum license
exchange and income and loss on contract termination among items included in other operating income, and loss and merger-related
expenses included in cost of sales and selling, general and administrative expenses.
6 For Sprint’s cumulative subscribers, from the three-month period ended in March 31, 2018, as a result of the introduction of a nonSprint branded postpaid plan allowing prepaid customers to purchase a device under an installment billing program, said prepaid
customers are included in the postpaid subscriber base. A retroactive adjustment has not been made.
7 Sprint’s net additions exclude changes in the subscriber base resulting from such special factors as the acquisition of other companies
by Sprint affiliate companies (regional telecom operators that use their own telecom networks to provide services under the Sprint
brand), the discontinuation of certain service plans at Sprint, or the establishment of venture companies by Sprint.
8 The acquisition costs and fair values of the investments at SoftBank Vision Fund include the investments made by subsidiaries of theCompany through investment holding entities that are subsidiaries of SoftBank Vision Fund.
9 Amount deposited for future indemnity claims
10 Contributions from limited partners of SoftBank Vision Fund excludes the amount that was repaid to limited partners due to investment plan changes and other reasons after the contribution had been made.
11 The Company’s obligation to Delta Fund is offset against the value of the investment securities in DiDi acquired by the Company
and then transferred to Delta Fund.
12 Non-recallable contribution of SoftBank Vision Fund represents the applicable principal for the investment in Flipkart, which was
returned to limited partners after the sale of its shares.
13 When an investment is made from the remaining committed capital of the third-party investor at Delta Fund, the same amount isdeducted from that investor’s remaining committed capital at SoftBank Vision Fund.

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

37

SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2019

3. Notes to Summary Information(1) Changes in Accounting Policies(Changes in accounting policies required by IFRSs)
IFRS 9 “Financial Instruments” and IFRS 15 “Revenue from Contracts with Customers” were adopted during thethree-month period ended June 30, 2018.
The details are described in “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 loss on equity method investments)
As a result of an impairment test which was conducted for an investment in OneWeb Global Limited, an equity
method associate of the Company, impairment loss was recognized for the fiscal year ended March 31, 2019. The
details are described in “19. Other non-operating income Notes 3” in “(6) Notes to Consolidated Financial Statements”
under “4. Consolidated Financial Statements and Primary Notes.”(Changes in estimate for use of loss carryforwards)
On December 19, 2018, SoftBank Corp. shares were listed on the Tokyo Stock Exchange First Section and a portionof SoftBank Corp. shares held by SoftBank Group Japan Corporation, a wholly-owned subsidiary of the Company,
was disposed.
As a result of the transaction, for gain on sales of SoftBank Corp. shares generated in SoftBank Group Japan
Corporation, a loss carryforward whose deferred tax asset was not recognized, was used and income taxes decreased.
The details are described in “10. Income taxes” in “(6) Notes to Consolidated Financial Statements” under “4.
Consolidated Financial Statements and Primary Notes.”(Assets classified as held for sale)
For the three-month period ended March 31, 2019, it is probable that the Company settles the variable prepaid
forward contract by Alibaba shares and therefore Alibaba shares related to the settlement were reclassified from
“Investments accounted for using the equity method” to “Assets classified as held for sale.” The details are describedin “5. Assets classified as held for sale” in “(6) Notes to Consolidated Financial Statements” under “4. Consolidated
Financial Statements and Primary Notes.”

38

SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2019

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.
SprintSprint Corporation

Arm

Arm Limited

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

Brightstar

Brightstar Global Group Inc.

Fortress

Fortress Investment Group LLC

Alibaba

Alibaba Group Holding Limited

39

SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2019(1) Consolidated Statement of Financial Position(Millions of yen)

As ofMarch 31, 2018
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
Goodwill
Intangible assets
Costs to obtain contracts
Investments accounted for using the equity method
Investments from SoftBank Vision Fund and Delta Fund
accounted for using FVTPL
Investment securities
Other financial assets
Deferred tax assets
Other non-current assets
Total non-current assets
Total assets

40

As of
March 31, 2019

3,334,650
2,314,353
519,444362,041
344,374
6,874,862
6,874,862

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

3,856,847
4,302,553
6,784,550
2,328,617

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

2,827,784
2,660,115
676,392
647,514221,232
24,305,604
31,180,466

7,115,629
924,614
1,185,856
586,943
215,959
28,338,488
36,096,476

SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2019

(Millions of yen)

As ofMarch 31, 2018
Liabilities and equity
Current liabilities
Interest-bearing debt
Deposits for banking business
Third-party interests in SoftBank Vision Fundand Delta Fund
Trade and other payables
Derivative financial liabilities
Other financial liabilities
Income taxes payables
Provisions
Other current liabilities
Total current liabilities

As ofMarch 31, 2019

3,217,405
684,091

3,480,960
745,943

40,713
1,816,010
96,241
1,646
147,979
65,709658,961
6,728,755

29,677
1,909,608
767,714
10,849534,906
43,685
1,158,355
8,681,697

13,824,783

12,204,146

Total liabilities

1,803,966
865,40262,372
100,486
132,139
1,085,626
303,915
18,178,689
24,907,444

4,107,288
130,545
57,11599,351
157,478
1,391,072
258,580
18,405,575
27,087,272

EquityEquity attributable to owners of the parent
Common stock
Capital surplus
Other equity instruments
Retained earnings
Treasury stock
Accumulated other comprehensive income
Total equity attributable to owners of the parent
Non-controlling interests
Total equity
Total liabilities and equity

238,772
256,768
496,876
3,940,259(66,458)
317,959
5,184,176
1,088,846
6,273,022
31,180,466

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

Non-current liabilities
Interest-bearing debt
Third-party interests in SoftBank Vision Fundand Delta Fund
Derivative financial liabilities
Other financial liabilities
Defined benefit liabilities
Provisions
Deferred tax liabilities
Other non-current liabilities
Total non-current liabilities

41SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2019(2) Consolidated Statement of Income and Consolidated Statement of Comprehensive Income
Consolidated Statement of Income(Millions of yen)

Fiscal year ended
March 31, 2018

Fiscal year ended
March 31, 2019

Net sales
Cost of sales
Gross profit

9,158,765(5,527,577)
3,631,188

9,602,236(5,747,671)
3,854,565

Selling, general and administrative expenses
Gain relating to loss of control over subsidiaries
Other operating loss
Operating income (excluding income from SoftBank
Vision Fund and Delta Fund)
Operating income from SoftBank Vision Fundand Delta Fund
Operating income
Finance cost
Income on equity method investments
Foreign exchange gain (loss)
Derivative gain (loss)
Gain (loss) from financial instruments at FVTPL
Change in third-party interests in SoftBank Vision Fundand Delta Fund
Other non-operating income
Income before income tax
Income taxes
Net income(2,552,664)-(2,786,674)
176,261(77,704)(146,862)

1,000,820

1,097,290

302,981
1,303,801(516,132)
404,584(34,518)(630,190)(68)

1,256,641
2,353,931(633,769)
316,794
11,145
158,230
38,443(160,382)
17,535
384,630
853,182
1,237,812(586,152)
32,6801,691,302(236,684)
1,454,618

1,038,977
198,835
1,237,812

1,411,199
43,4191,454,618

933.54908.381,268.15
1,256.53

Net income attributable to
Owners of the parent
Non-controlling interests

Earnings per share
Basic earnings per share (Yen)
Diluted earnings per share (Yen)42SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2019

Consolidated Statement of Comprehensive Income(Millions of yen)

Fiscal year ended
March 31, 2018
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
Available-for-sale financial assets
Debt financial assets at FVTOCI
Cash flow hedges
Exchange differences on translating foreign
operations
Share of other comprehensive income ofassociates
Total items that may be reclassified subsequently to
profit or loss
Total other comprehensive income, net of tax
Total comprehensive income
Total comprehensive income attributable to
Owners of the parent
Non-controlling interests

43

Fiscal year ended
March 31, 2019

1,237,812

1,454,618

8,795-(1,204)(3,664)

8,795(4,868)29,640(9,682)

1,145
8,766

42,92027,22820,047

15,40682,92552,54591,7201,329,532

47,677
1,502,295

1,153,128
176,404
1,329,532

1,440,235
62,0601,502,295

SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2019(3) Consolidated Statement of Changes in Equity
For the fiscal year ended March 31, 2018
(Millions of yen)

Equity attributable to owners of the parent
Accumulated

As of April 1, 2017
Comprehensive income
Net income
Other comprehensive
incomeTotal comprehensive income
Transactions with owners andother transactions
Issuance of other equity
instruments
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 theirsubsidiaries
Changes in interests in associates’
capital surplus
Share-based payment transactions
Other
Total transactions with owners
and other transactions
As of March 31, 2018

As of April 1, 2017
Comprehensive income
Net income
Other comprehensive
incomeTotal comprehensive income
Transactions with owners andother transactions
Issuance of other equity
instruments
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 theirsubsidiaries
Changes in interests in associates’
capital surplus
Share-based payment transactions
Other
Total transactions with owners
and other transactions
As of March 31, 2018

Commonstock
238,772

Capitalsurplus245,706-

Retainedearnings
2,958,355

Other equity
instruments

other
Treasurycomprehensivestock
income(67,727)
211,246

Total
3,586,352---

1,038,977--

1,038,977

-

-

-

-

-

114,151

114,151---

1,038,977-

114,151

1,153,128--

496,876---

496,876---(47,933)--(47,933)---(15,852)--(15,852)

-

-

-

7,438

-

(7,438)

-

-

-

-

(726)

1,269

-

543

-

-

-

-

-

-

-

-

(31,293)

-

-

-

-

(31,293)-(5,133)

-

-

-

-

(5,133)-40,820----40,820

-

6,668
-

-

-

-

-

6,668
-

-

11,062496,876(57,073)

1,269(7,438)444,696

238,772

256,768

496,876

3,940,259(66,458)

317,959

5,184,176

Noncontrollinginterests
883,378

Total equity
4,469,730

198,835

1,237,812(22,431)

91,720176,404

1,329,532-

496,876(30,889)(78,822)-(15,852)

-

-

-

543

52,67352,673(4,410)(35,703)-(5,133)-40,82012,131(441)

18,799(441)

29,064

473,760

1,088,846

6,273,022

44

SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2019

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 theirsubsidiaries
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

45

SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2019

(Millions of yen)

As of April 1, 2018
Effect of retrospective
adjustments due to adoption of
new standards*
As of April 1, 2018
(after adjustments)
Comprehensive income
Net income
Other comprehensive
incomeTotal comprehensive income
Transactions with owners andother transactions
Cash dividends
Distribution to owners of other
equity instruments
Transfer of accumulated othercomprehensive income toretained earnings
Purchase and disposal of treasury
stock
Changes from businesscombination
Changes in interestsin subsidiaries
Changes in associates’interests in theirsubsidiaries
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:* In accordance with 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 andaccumulated other comprehensive income. The details are described in “(2) Effect of adopting new standards and interpretations”
under “Note 1. Significant accounting policies.”

46

SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2019(4) Consolidated Statement of Cash Flows(Millions of yen)

Fiscal year ended
March 31, 2018
Cash flows from operating activities
Net income
Depreciation and amortization
Gain relating to loss of control over subsidiaries
Gain on investments at SoftBank Vision Fundand Delta Fund
Finance cost
Income on equity method investments
Derivative loss (gain)
Loss (gain) from financial instruments at FVTPL
Change in third-party interests in SoftBank Vision Fundand Delta Fund
Foreign exchange loss (gain) and other non-operating(income)
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
Cash flows from investing activities
Purchase of property, plant and equipment, and intangible
assetsPayments for acquisition of investments
Proceeds from sales/redemption of investments
Payments for acquisition of investments by SoftBank
Vision Fund and Delta Fund
Proceeds from sales of investments by SoftBank Vision
Fund and Delta Fund
Proceeds (payments) from (for) acquisition of control
over subsidiaries
Proceeds from loss of control over subsidiaries, net
Payments for acquisition of marketable securities for
short-term trading
Proceeds from sales/redemption of marketable securities
for short-term trading
Payments for loan receivables
Collection of loan receivables
Payments into time deposits
Proceeds from withdrawal of time deposits
Other
Net cash used in investing activities

47

Fiscal year ended
March 31, 2019

1,237,812
1,585,873-

1,454,618
1,694,187(176,261)(352,095)(1,302,838)

516,132(404,584)

633,769(316,794)

630,190(158,230)

68(38,443)

160,382

586,152

16,983(43,825)(853,182)

236,684(170,067)(521,000)
173,038(30,375)
1,989,175
31,987(541,011)(487,428)
95,9001,088,623(189,651)(470,686)
108,223
44,6602,061,565
49,966(608,146)(434,360)
102,839
1,171,864(1,064,835)(1,364,954)(1,735,694)
53,786(822,628)
292,582(2,263,260)(1,576,790)-

428,865

61,965(65,134)-

91,016(208,244)(298,620)

399,963

344,031(138,765)
93,440(297,483)
467,708
146,597(4,484,822)(302,531)
47,895(454,544)
752,808
19,988(2,908,016)

SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2019

(Millions of yen)

Fiscal year ended
March 31, 2018
Cash flows from financing activities
Proceeds in short-term interest-bearing debt, net
Proceeds from interest-bearing debt
Repayment of interest-bearing debt
Contributions into SoftBank Vision Fundand Delta Fund from third-party investors
Distribution/repayment from SoftBank Vision Fundand Delta Fund to third-party investors
Proceeds from the partial sales of shares of subsidiaries tonon-controlling interests
Purchase of shares of subsidiaries from non-controllinginterests
Proceeds from issuance of other equity instruments
Distribution to owners of other equity instruments
Purchase of treasury stock
Cash dividends paid
Cash dividends paid to non-controlling interests
Other
Net cash provided by financing activities

Fiscal year ended
March 31, 2019(40,829)8,547,346(6,003,188)(65,411)6,189,112(7,128,379)

1,967,191

2,133,682(187,061)(486,388)-

2,350,262(52,393)(229,818)

Effect of exchange rate changes on cash and cash equivalents

496,876(15,852)(41)(47,918)(30,285)(7,425)
4,626,421(78,674)(31,736)(384,102)(47,918)(30,901)(66,112)2,202,291
57,729

Increase in cash and cash equivalents

1,151,548

523,868

Cash and cash equivalents at the beginning of the year
Cash and cash equivalents at the end of the year

2,183,102
3,334,650

3,334,650
3,858,518

48

SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2019(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, 2018.
Standard/interpretation

IFRS 9Financial Instruments

IFRS 15

Revenue from Contracts
with Customers

Outline of the new/revised standards
IFRS 9 replaces the previous IAS 39. Main revisions are:・to revise classification into measurement categories offinancial instruments (amortized cost and fair value) andmeasurement;
・to revise the treatment of changes in fair value of financial
liabilities measured at fair value;
・to revise the eligibility requirement of hedged items andhedging instruments, and requirements related to theeffectiveness of the hedge; and・to revise the measurement approach for impairment byintroducing an impairment model based on the expectedcredit loss.
IFRS 15 replaces the previous IAS 11 and IAS 18. Mainrevisions are:・to require revenue recognition by the following five steps:
a. identify the contract with the customer
b. identify the performance obligations in the contractc. determine the transaction priced. allocate the transaction price to each performanceobligation in the contract
e. recognize revenue when (or as) a performanceobligation is satisfied
・to revise the treatment for contract costs, license andguarantee of products; and・to increase the disclosure related to revenue recognition.

There are no significant impacts on the consolidated financial statements due to the adoption of the other new
standards or interpretations.
In accordance with the transitional provisions of IFRS 9, the Company applied this standard retrospectively tofinancial instruments held as of the date of initial application (April 1, 2018) and recognized the cumulative effect ofapplying the standard as an adjustment to the opening retained earnings and accumulated other comprehensive
income at the date of initial application. Accordingly, comparative information for the fiscal year ended March 31,2018 is not restated.
In accordance with the transitional provisions of IFRS 15, the Company applied this standard retrospectively tocontracts that are not completed as of the date of initial application (April 1, 2018) and recognized the cumulative
effect of applying the standard as an adjustment to the opening retained earnings at the date of initial application.
Accordingly, comparative information for the fiscal year ended March 31, 2018 has not been restated.

49SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2019(2) Effect of adopting new standards and interpretations
The financial impacts of applying “IFRS 9 Financial Instruments” and “IFRS 15 Revenue from Contracts with
Customers” on consolidated statement of financial position as of April 1, 2018 and consolidated financial statements
for the fiscal year ended March 31, 2019 are as follows:(Consolidated Statement of Financial Position)
As of April 1, 2018
(Millions of yen)
IFRS 9Adjustment
amount

Before adoption

IFRS 15
Adjustment
amountAfter adoption

ASSETS
Trade and other receivables

2,314,353

75

6,580

2,321,008

Inventories

362,041-(2,539)359,502

Other current assets1

344,374(177)

12,416356,613

6,784,550-(13,271)

6,771,279--

304,778

304,778

Deferred tax assets

647,51431(54,466)

593,079

Other non-current assets1

221,232-(21,999)

199,233

Trade and other payables1

1,816,010-(62,238)

1,753,772

Other current liabilities1

658,961-

46,900705,861

Deferred tax liabilities

1,085,626-

41,387

1,127,013

303,915-(58,029)

245,886

3,940,259

52,537

248,078

4,240,874

317,959(52,531)(5,297)260,131

1,088,846(22)

21,322

1,110,146

Intangible assets
Costs to obtain contracts2

LIABILITIES AND EQUITYOther non-current liabilities1
Retained earnings1,2,5
Accumulated other comprehensive
income5Non-controlling interests

50

SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2019

(Consolidated Statement of Financial Position)
As of March 31, 2019
(Millions of yen)
IFRS 9Adjustment
amount

Before adoption

IFRS 15
Adjustment
amountAfter adoption

ASSETS
Trade and other receivables
Inventories
Other current assets1

2,324,372

55

15,5502,339,977

367,512-(2,252)365,260

712,328

1

54,227

766,556

6,915,549-(23,354)

6,892,195--

384,076

384,076

Deferred tax assets

656,92831(70,016)

586,943

Other non-current assets1

207,746-

8,213

215,959

Trade and other payables1

1,999,412-(89,804)

1,909,608

Other current liabilities1

1,099,240-

59,115

1,158,355

Deferred tax liabilities

1,324,240-

66,832

1,391,072

323,317-(64,737)

258,580

5,045,863

175,084

350,338

5,571,285

465,228(174,951)(9)

290,268

1,342,375(13)

45,361

1,387,723

Intangible assets
Costs to obtain contracts2

LIABILITIES AND EQUITYOther non-current liabilities1
Retained earnings1,2,5
Accumulated other comprehensive
income5Non-controlling interests(Consolidated Statements of Income)Fiscal year ended March 31, 2019
(Millions of yen)
IFRS 9Adjustment
amount

Before adoption

IFRS 15
Adjustment
amountAfter adoption

Net sales1

9,542,926-

59,3109,602,236

Cost of sales(5,733,204)-(14,467)(5,747,671)

Gross profit
Selling, general and administrative
expenses2
Operating income from SoftBank Vision
Fund and Delta Fund5

3,809,722-

44,8433,854,565(2,910,922)

4,334

119,914(2,786,674)

1,121,114

135,527-

1,256,641

Operating income

2,049,338

139,861

164,732

2,353,931

Income on equity method investments

365,768(48,974)-

316,794

Gain from financial instruments at FVTPL5

23,034

15,409-38,443

Other non-operating income3,5

42,450(9,770)-32,680

Income taxes(220,867)

23,411(39,228)(236,684)

Net income

1,209,192

120,063

125,363

1,454,618

Basic earnings per share (Yen)

1,061.72

112.4194.02

1,268.15

Diluted earnings per share (Yen)

1,050.46

112.2193.86

1,256.53

51

SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2019

(Consolidated Statements of Comprehensive Income)Fiscal year ended March 31, 2019
(Millions of yen)
IFRS 9Adjustment
amount

Before adoption
Net income

IFRS 15
Adjustment
amountAfter adoption

1,209,192

120,063

125,363

1,454,618-(3,664)-(3,664)

154,311(154,311)

-

-

-

1,145

-

1,145

27,5501(323)

27,228(19,123)

34,529-15,406

Other comprehensive income, net of tax
Items that will not be reclassified to
profit or loss
Equity financial assets at FVTOCI3
Items that may be reclassified
subsequently to profit or loss
Available-for-sale financial assets3,4,5
Debt financial assets at FVTOCI4
Exchange differences on translating
foreign operations
Share of other comprehensive income ofassociates accounted for using theequity method5

Notes:
1. Mobile telecommunications services and sales of mobile handsets
There are various changes related to the allocation of transaction prices to revenues from the mobile
telecommunications service and revenues from the sale of mobile handsets as well as timing of revenue
recognition. The main changes result from changes in accounting treatment for wireless subsidy contracts andchanges in the period during which revenue from activation fees and upgrade fees are deferred. The Company
previously deferred direct costs related to activation over the same period as the revenue from activation fees andupgrade fees. As a result of adopting IFRS 15, the Company recognizes direct costs related to activation as
expenses when incurred, except for costs related to obtain contracts.
In addition, interest incurred on an installment contract entered into between the Company and a subscriber is nota significant financing component under IFRS 15. Therefore, the Company does not adjust the financing
component for installment receivables at contract inception.
2. Capitalization of costs to obtain contracts
The Company’s existing approach is to recognize sales commissions to dealers related to mobile
telecommunications service contracts as expenses when incurred. As a result of adopting IFRS 15, the Company
capitalizes the sales commissions that would not have been incurred if the mobile telecommunications service
contract had not been obtained and that are expected to be recovered, as the costs to obtain contracts. The costs toobtain contracts are amortized on a straight-line basis over the period during which services related to such costs
are expected to be provided.
3. Financial assets previously classified as available-for-sale are classified as equity financial assets at FVTOCI bymaking an irrevocable election that would otherwise be measured at fair value through profit or loss to present
subsequent changes in fair value in other comprehensive income.
4. Financial assets previously classified as available-for-sale are classified as debt financial assets at FVTOCI taking
into account the business model and cash flow characteristics.
5. Financial assets previously classified as available-for-sale other than financial assets described in the above Notes 3
and Notes 4 are classified as financial assets at FVTPL.

52

SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2019

Major effects on the carrying amount from the change in classification of financial assets due to the adoption of IFRS
9 as of April 1, 2018 are as follows. There are no changes in classification and carrying amount of financial
liabilities.
As of April 1, 2018
Previous standard (IAS 39)
Classification offinancial assets

Change in classification
Available-forAvailable-forLoan andsale tosale toreceivables
financialfinancial
to financial
assets at
assets at
assets at
FVTPL
amortized cost
FVTPL

Carrying amountFinancial assets at
FVTPL

4,749,563

501,941-

Derivatives
designated as
hedging instruments

4,358

-

-

Available-for- sale

860,147(501,941)(100)

Held-to-maturity
Loan and receivables
Total

116,172
3,267,848
8,998,088

-

100

-

-

(Millions of yen)
New standard (IFRS 9)Classification offinancial assets

Financial assets at
FVTPL
Derivatives
designated as
hedging
instruments
Debt financial
assets at FVTOCI
Equity financial
assets at FVTOCI
Financial assets at(3,655)amortized cost
Total
3,655

Carrying amount

5,255,159

4,358

249,427
108,679
3,380,465
8,998,088

Measurement categories under IAS 39 and IFRS 9 for the Company’s major financial assets as of April 1, 2018 are as
follows. There are no change in measurement categories and carrying amount of financial liabilities
As of April 1, 2018
(Millions of yen)
New standard (IFRS 9)

Previous standard (IAS 39)
Major financial assets

Measurement
category

Carrying amountMeasurement
category

Carrying amount

Equity securities
Investments from SoftBank
Vision Fund and Delta Fund

FVTPL

2,817,160

Available-for-sale

525,951

FVTPL

1,802,152

Bonds

Available-for-sale

240,921

Trade and other receivables

Amortized cost

2,314,353

Other equity securities

FVTPL62,817,160

FVTOCI7
FVTPL
FVTPL6FVTOCI8
FVTPL

102,368
423,583
1,802,152100
224,090
16,731

Amortized cost

2,314,428

Amortized cost

6. Financial assets previously designated as financial assets at FVTPL are classified as financial assets at FVTPL inaccordance with the criteria regarding the classification under IFRS 9.
7. Financial assets previously classified as available-for-sale are classified as equity financial assets at FVTOCI bymaking an irrevocable election that would otherwise be measured at fair value through profit or loss to present
subsequent changes in fair value in other comprehensive income.
8. Financial assets previously classified as available-for-sale are classified as debt financial assets at FVTOCI since
they are held within a business model whose objective is achieved by both collecting contractual cash flows andselling financial assets.

53

SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2019(3) Significant accounting policies for SoftBank Vision Fund and Delta Fund segment
For Softbank Vision Fund and Delta Fund, the Company applies the same accounting policies as follows.
a. Consolidation of the SoftBank Vision Fund and Delta Fund segment by the Company
SoftBank Vision Fund and Delta Fund are limited Partnerships established by their respective General Partners which
are wholly-owned subsidiaries of the Company, and by their form of organization, qualify as structured entities.
SoftBank Vision Fund and Delta Fund are consolidated by the Company for the following reasons.
The various entities comprising SoftBank Vision Fund and Delta Fund make investment decisions through theirrespective Investment Committee, which were established as committees of SBIA. SBIA is an advisory company andis a wholly-owned subsidiary of the Company. As such, the Company has power as defined under IFRS 10“Consolidated Financial Statements” over SoftBank Vision Fund and Delta Fund. Furthermore, SBIA receives
performance fees and the Company receives distributions attributable to limited Partners based on the investment
performance as returns from the Funds. The Company has the ability to affect those returns through its power over theFunds, and therefore, the Company is deemed to have control as stipulated in IFRS 10 over each Fund.
Inter-company transactions such as management fees and performance fees to SBIA paid or to be paid from SoftBank
Vision Fund and Delta Fund are eliminated in consolidation.
b. Portfolio company investments made by SoftBank Vision Fund and Delta Fund(a) Investments in subsidiaries
Of the portfolio company investments made by SoftBank Vision Fund, the portfolio companies that the Company isdeemed to control under IFRS 10 are subsidiaries of the Company. Accordingly, their results of operations, assets
and liabilities are included in the Company’s consolidated financial statements.
Gain and loss on investments in the subsidiaries of the Company which are recognized in the SoftBank Vision Fundare eliminated in consolidation.
(b) Investments in associates and joint ventures
Of the portfolio company investments made by SoftBank Vision Fund, the portfolio companies over which theCompany has significant influence under IAS 28 “Investments in Associates and Joint Ventures” are associates of
the Company, and the portfolio companies that are joint ventures of the SoftBank Vision Fund when, as defined
under IFRS 11 “Joint Arrangements,” the SoftBank Vision Fund has joint control with other investors undercontractual arrangements and the investors have rights to the net assets of the arrangement.
The investments in associates and joint ventures of the Company made by SoftBank Vision Fund are accounted for
as financial assets at FVTPL in accordance with paragraph 18 of IAS 28, and presented as “Investments from
SoftBank Vision Fund and Delta Fund accounted for using FVTPL” in the consolidated statement of financial
position. The payments for these investments are presented as “Payments for acquisition of investments by SoftBank
Vision Fund and Delta Fund” under cash flows from investing activities in the consolidated statement of cash flows.
(c) Other investments
Investments other than those in associates or joint ventures of the Company made by the SoftBank Vision Fund andDelta Fund are accounted for as financial assets at FVTPL. The presentation of these investments in the 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 Delta Fund business
Income and loss arising from the SoftBank Vision Fund and Delta Fund business are separated from operating income
and loss arising from other businesses, recognized as a component of operating income, and presented as “Operating
income from SoftBank Vision Fund and Delta Fund” in the consolidated statement of income. Gain and loss arisingfrom “b. Portfolio company investments made by SoftBank Vision Fund and Delta Fund” (realized gain and loss on
sales of investments, unrealized gain and loss on valuation of investments, interest and dividend income frominvestments, except for gain and loss on investments in subsidiaries) and operating expenses such as incorporation
expenses of entities that comprise SoftBank Vision Fund and Delta Fund, investment research expenses arising from
SBIA, and administrative expenses arising from each entity, are included in “Operating income from SoftBank Vision
Fund and Delta Fund.”54

SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2019d. Bridge Investments
Investments acquired by SoftBank Group Corp. or its subsidiaries with the premise of offering to SoftBank Vision
Fund and Delta Fund and were made in accordance with the investment eligibility criteria of the SoftBank Vision
Fund at the time of acquisition (“Bridge Investments”) are accounted for as financial assets at FVTPL. The Company
recognizes the decision to transfer such investments after the Company obtains consent 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 recognizes the decision to transfer such investments(hereafter phrased as “the transfer is agreed”) as further described below.
(a) Investments made in the fiscal year ended March 31, 2019
If the transfer is agreed in the fiscal year ended March 31, 2019, the Company presents items relevant to thoseinvestments as if SoftBank Vision Fund and Delta Fund had made those investments from the date when the
Company initially made the investments. Those items would be presented as “Investments from SoftBank Vision
Fund and Delta Fund accounted for using FVTPL” in the consolidated statement of financial position, “Operating
income from SoftBank Vision Fund and Delta Fund” in the consolidated statement of income, and “Payments foracquisition of investments by SoftBank Vision Fund and Delta Fund” under cash flows from investing activities in
the consolidated statement of cash flows.
On the other hand, if the investments have not yet been agreed as of March 31, 2019, the Company presents items
relevant to those investments as “Investment securities” in the consolidated statement of financial position, “Gainfrom 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 of cash flows.
(b) Investments made on or prior to March 31, 2018
i. Investments for which the transfer is agreed in the fiscal year ended March 31, 2019
If the transfer is agreed in the fiscal year ended March 31, 2019, the Company presents the carrying amounts of
those investments as if the investments had been agreed to be transferred at April 1, 2018. Those investments would
be presented as “Investments from SoftBank Vision Fund and Delta Fund accounted for using FVTPL” in the
consolidated statement of financial position as of March 31, 2019 and with the respective gain and loss on thoseinvestments as “Operating income from SoftBank Vision Fund and Delta Fund” in the consolidated statement ofincome for the fiscal year ended March 31, 2019. For the periods prior to April 1, 2018, the following presentation
would be applied. The carrying amounts of those investments are presented as “Investment securities” in the
consolidated statement of financial position as of March 31, 2018, gain and loss on investments as “Gain fromfinancial instruments at FVTPL” in the consolidated statement of income for the fiscal year ended March 31, 2018,
and payments for acquisition of investments as “Payments for acquisition of investments” under cash flows frominvesting activities in the consolidated statement of cash flows for the fiscal year ended March 31, 2018.
ii. Investments for which the transfer is agreed on or prior to March 31, 2018
If the transfer is agreed on or prior to March 31, 2018, the Company presents the carrying amounts of thoseinvestments as if the investments had been agreed to be transferred at April 1, 2017. Those investments would bepresented as “Investments from SoftBank Vision Fund and Delta Fund accounted for using FVTPL” in the
consolidated statement of financial position as of March 31, 2018 and the respective gain and loss on thoseinvestments as “Operating income from SoftBank Vision Fund and Delta Fund” in the consolidated statement ofincome for the fiscal year ended March 31, 2018, and payments for acquisition of investments as “Payments foracquisition of investments by SoftBank Vision Fund and Delta Fund” under cash flows from investing activities in
the consolidated statement of cash flows for the fiscal year ended March 31, 2018.
e. Investments that are not Bridge Investments and for which the transfer is agreed
For investments that are not Bridge Investments, when the transfer is agreed, the Company continues to apply thesame accounting treatment followed in the periods prior to the agreement. They are accounted for as financial assets at
FVTPL for the fiscal year ended March 31, 2019.
If the transfer is agreed in the fiscal year ended March 31, 2019, the Company presents the carrying amounts of thoseinvestments as of March 31, 2019 as if the investments had been made by SoftBank Vision Fund on the date thetransfer was agreed. Those investments would be presented as “Investments from SoftBank Vision Fund and Delta
Fund accounted for using FVTPL” in the consolidated statement of financial position as of March 31, 2019, the55SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2019difference between the carrying amount and the transferred amount and the respective gain and loss on thoseinvestments arising from the difference between the transferred amount and fair value as of March 31, 2019 as “Gainand loss from financial instruments at FVTPL” and “Operating income from SoftBank Vision Fund and Delta Fund”
in the consolidated statement of income for the fiscal year ended March 31, 2019, respectively, and payments foracquisition of such investments as “Payments for acquisition of investments” under cash flows from investing
activities in the consolidated statement of cash flows for the fiscal year ended March 31, 2019.
f. Contribution from limited Partners to SoftBank Vision Fund and Delta Fund
SoftBank Vision Fund and Delta Fund issue capital calls from their respective limited partners (“Capital Call”).
(a) Contribution from Limited Partners other than the Company
The interests attributable to limited partners of SoftBank Vision Fund and Delta Fund other than the Company(“Third-Party Investors”) are classified as financial liabilities, “Third-party interests in SoftBank Vision Fund andDelta Fund” in the consolidated statement of financial position, due to the predetermined finite life (in principle, until
November 20, 2029 for SoftBank Vision Fund and until September 27, 2029 for Delta Fund) and contractual
payment provision to each of the limited partners at the end of the finite life within SoftBank Vision Fund and Delta
Fund’s limited partnership agreements. The liabilities are classified as “financial liabilities measured at amortizedcost” upon initial recognition. The carrying amounts attributable to Third-Party Investors represent the amounts thatwould be distributed in accordance with the limited partnership agreement in a theoretical liquidation scenario at theend of each year.
“Third-party interests in SoftBank Vision Fund and Delta Fund” fluctuate due to the results of SoftBank Vision Fundand Delta Fund in addition to contributions from Third-Party Investors in satisfaction of Capital Calls, anddistributions and repayments of investments to Third-Party Investors. The fluctuations due to the results of SoftBank
Vision Fund and Delta Fund are presented as “Change in third-party interests in SoftBank Vision Fund and Delta
Fund” in the consolidated statement of income.
Contributions from Third-Party Investors to SoftBank Vision Fund and Delta Fund are included in “Contributions
into SoftBank Vision Fund and Delta Fund from third-party investors” under cash flows from financing activities in
the consolidated statement of cash flows. The distributions and repayments of investments to Third-Party Investors
are included in “Distribution/repayment from SoftBank Vision Fund and Delta Fund to third-party investors” undercash 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,” andtherefore such amount is not recorded in the consolidated statement of financial position.
(b) Contribution from the Company
Contribution from the Company to SoftBank Vision Fund and Delta Fund as a limited partner is eliminated inconsolidation.

56

SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2019

2. Segment information(1) Description of reportable segments
The Company’s reportable segments are components of business activities for which discrete financial
information is available, and such information is regularly reviewed by the Company’s Board of Directors inorder to make decisions about the allocation of resources and assess its performance.
For the fiscal year ended March 31, 2018, the Company had six reportable segments, the Domestic
Telecommunications segment, the Sprint segment, the Yahoo Japan segment, the Distribution segment, the Armsegment, and the SoftBank Vision Fund and Delta Fund segment. However, from the three-month period ended
June 30, 2018, in accordance with changes in the Company’s organization based on its unique organizational
strategy, Cluster of No.1 Strategy, the Company has revised its segment classifications to the following six
reportable segments: the SoftBank segment, the Sprint segment, the Yahoo Japan segment, the Arm segment, theSoftBank Vision Fund and Delta Fund segment, and the Brightstar segment.
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
SoftBank Commerce & Service Corp. (currently SB C&S Corp.), sale of mobile device accessories, PC software,and peripherals in Japan.
The Sprint segment provides, through Sprint, mobile communications services, sale and lease of mobile devices,sale of mobile device accessories, and fixed-line telecommunications services in the U.S.
The Yahoo Japan segment provides, mainly through Yahoo Japan Corporation, an Internet-based advertisingbusiness, an e-commerce business, and membership services.
The Arm segment provides, through Arm, designs of microprocessor intellectual property and related technology,
and the sale of software tools.
The SoftBank Vision Fund and Delta Fund segment conducts investment activities in a wide range of technology
sectors. The segment income of the SoftBank Vision Fund and Delta Fund segment consists of gain and loss
arising from investments, including subsidiaries, held by SoftBank Vision Fund and Delta Fund or theinvestments that transfer is agreed (gain and loss on investments at SoftBank Vision Fund and Delta Fund), andoperating expenses and other expenses incurred in SoftBank Vision Fund, Delta Fund, and SBIA.
The Brightstar segment provides, through Brightstar, distribution of mobile devices overseas.
Information on business segments which are not included in the reportable segments is classified in “Other.”“Other” includes mainly Fortress and the Fukuoka SoftBank HAWKS-related operations.
“Reconciliations” include 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, 2018 is presented based on the reportable segments
after the change.
(2) Net sales and income of reportable segments
Income of reportable segments is defined as “Operating income.” Intersegment transaction prices are determined
under the same general business conditions as applied for external customers.
The Company also discloses EBITDA (i.e., segment income and loss after addition of depreciation andamortization excluding amortization relating to costs to obtain contracts) and adjusted EBITDA (i.e., EBITDA
after addition or deduction of gain relating to loss of control over subsidiaries, adjustments relating toinvestments in SoftBank Vision Fund and Delta Fund (unrealized gain and loss on valuation of investments andeffect of foreign exchange translation), and other adjustments (gains are deducted)) by each reportable segment.

57

SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2019

“Other adjustments” are special items, such as acquisition-related costs and impairment loss mainly included inother operating income and loss.
Adjusted EBITDA in SoftBank Vision Fund and Delta Fund segment is defined as the total amount of difference
between the realized amount by sales of investments and acquisition costs (“realized gain and loss from sales ofinvestments”) and interest and dividend income from investments with deduction of operating expenses(excluding depreciation and amortization).
Income and loss, which is not attributable to operating income and loss, such as financial cost and income andloss on equity method investments, is not managed by each reportable segment and therefore these income andlosses are excluded from segment performance.
For the fiscal year ended March 31, 2018
(Millions of yen)

Reportable segments
SoftBank
Vision Fundand Delta Fund

SoftBank

Sprint

Yahoo
Japan

Customers

3,564,842

3,403,820

851,756

202,338

Intersegment

43,996

198,141

24,342

6

3,608,838

3,601,961

876,098

684,717279,283

176,286

Brightstar

Total

-

1,047,937

9,070,693-

27,083

293,568

202,344-

1,075,020

9,364,261(31,380)

302,981(44,634)

1,367,253

Arm

Net sales

Total
Segment income

Reconciliation of segment income to adjusted EBITDA
684,717279,283

176,286(31,380)

302,981(44,634)

1,367,253

505,230

953,820

43,72262,3241

5,613

1,570,710

EBITDA
Adjustments relating toinvestments in SoftBank
Vision Fund and Delta
Fund
Unrealized gain (loss) on
valuation of investments
Other adjustments

1,189,947

1,233,103

220,008

30,944

302,982(39,021)2,937,963

-

-

-

-

(345,975)-(345,975)

9,710(5,762)(10,064)-

20,50250,49764,883Adjusted EBITDA

1,199,657

1,227,341

209,944

30,944(22,491)

11,476

2,656,871

Segment income
Depreciation andamortization(Millions of yen)

Reconciliations

Other

Consolidated

Net sales
Customers

88,072-

9,158,765

Intersegment

9,554(303,122)

-

Total

97,626(303,122)

9,158,765

Segment income(21,835)(41,617)

1,303,801

Reconciliation of segment income to adjusted EBITDA
Segment income
Depreciation andamortization(21,835)(41,617)

1,303,801

13,655

1,508

1,585,873

EBITDA
Adjustments relating toinvestments in SoftBank
Vision Fund and Delta
Fund
Unrealized gain (loss) on
valuation of investments
Other adjustments(8,180)(40,109)2,889,674--(345,975)(5,042)

1,577

61,418Adjusted EBITDA(13,222)(38,532)

2,605,11758

SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2019

For the fiscal year ended March 31, 2019
(Millions of yen)

Reportable segments
SoftBank
Vision Fundand Delta Fund

SoftBank

Sprint

Yahoo
Japan

3,703,014

3,533,834

923,539

44,731

193,010

23,898

83-

25,102286,824

3,747,745

3,726,844

947,437

202,699-

1,082,669

9,707,394

725,140

280,295

134,910

133,966

1,256,641(23,396)2,507,556

Arm

202,616Brightstar

Total

1,057,567

9,420,570

Net sales
Customers
Intersegment
Total
Segment income-

Reconciliation of segment income to adjusted EBITDA
Segment income
Depreciation andamortization
EBITDA
Gain relating to loss ofcontrol over subsidiaries
Adjustments relating toinvestments in SoftBank
Vision Fund and Delta
Fund
Unrealized gain (loss) on
valuation of investments
Effect of foreignexchange translation

725,140

280,295

134,910

133,966

1,256,641(23,396)2,507,556

487,246

1,040,958

55,76066,73089

5,929

1,656,712

1,212,386

1,321,253

190,670

200,696

1,256,730(17,467)

4,164,268---(176,261)--(176,261)

-

-

-

-

(1,013,228)-(1,013,228)

-

-

-

-

11,443-

11,443

Other adjustments*

81

91,921

2,918-

172,154-

267,074

Adjusted EBITDA

1,212,467

1,413,174

193,588

24,435427,099(17,467)

3,253,296(Millions of yen)

Reconciliations

Other

Consolidated

Net sales
Customers

181,666-

9,602,236Intersegment

12,076(298,900)

-

Total

193,742(298,900)

9,602,236

Segment income(90,053)(63,572)

2,353,931

Reconciliation of segment income to adjusted EBITDA
Segment income
Depreciation andamortization(90,053)(63,572)

2,353,931

36,776699

1,694,187

EBITDA
Gain relating to loss ofcontrol over subsidiaries
Adjustments relating toinvestments in SoftBank
Vision Fund and Delta
Fund
Unrealized gain (loss) on
valuation of investments
Effect of foreignexchange translation(53,277)(62,873)

4,048,118--(176,261)--(1,013,228)--

11,443*

16,315-283,389

Adjusted EBITDA(36,962)(62,873)

3,153,461

Other adjustments

59SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2019

Note:
* “Other adjustments” in the Softbank Vision Fund and Delta Fund segment are mainly derivative gain and loss of ¥168,471 million(¥(8,902) million for the fiscal year ended March 31, 2018 and ¥177,373 million for the fiscal year ended March 31, 2019) in relation tocollar transactions utilizing NVIDIA Corporation (“NVIDIA”) shares. The details are described in “b. Income and loss arising from the
SoftBank Vision Fund and Delta Fund business Notes 1” in “(1) Income and loss arising from the SoftBank Vision Fund and Delta Fundbusiness included in the consolidated statement of income” under “Note 3. SoftBank Vision Fund and Delta Fund business.”

60SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2019

3. SoftBank Vision Fund and Delta Fund business(1) Income and loss arising from the SoftBank Vision Fund and Delta Fund business included in the consolidated
statement of incomea. Overview
Income and loss arising from the SoftBank Vision Fund and Delta Fund business in the consolidated statement ofincome 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 the
SoftBank Vision Fund and Delta Fund attributable to Third-Party Investors are accounted for as a component of
non-operating income or loss, and presented as “Change in third-party interests in SoftBank Vision Fund and Delta
Fund.” As a result, income before income tax from SoftBank Vision Fund and Delta Fund business includes income
and loss attributable to the Company as a limited partner, management fees and performance fees to SBIA.
b. Income and loss arising from the SoftBank Vision Fund and Delta Fund business
The following table shows income and loss arising from the SoftBank Vision Fund and Delta Fund business.
(Millions of yen)

Fiscal year ended
March 31, 2018
Gain and loss on investments at SoftBank Vision
Fund and Delta Fund
Realized gain and loss on sales of investments1
Unrealized gain and loss on valuation of
investments2
Change in valuation for the fiscal year
Reclassified to realized gain and loss recordedin the past fiscal year3
Interest and dividend income from investments
Effect of foreign exchange translation4

Fiscal year ended
March 31, 2019-296,531345,975

1,378,553-(365,325)

6,120
352,095

4,522(11,443)
1,302,838(49,114)(46,197)

302,981

1,256,641

Finance cost (interest expenses)5(7,801)(33,141)

Foreign exchange gain and loss

(33)

68

(8,902)

177,373(160,382)(586,152)

(248)

(232)

125,615

814,557

Operating expenses
Operating income from SoftBank Vision Fundand Delta Fund

6

Derivative gain and loss
Change in third-party interests in SoftBank Vision
Fund and Delta Fund
Other non-operating income and loss
Income before income tax

Notes:
1. SoftBank Vision Fund sold the shares in Flipkart Private Limited in August 2018 and the gain realized on the saleis ¥ 146,682 million.
In January 2019, SoftBank Vision Fund executed an unwind of the collar transactions that had been entered into
in November 2017 and thereafter, and utilized the NVIDIA shares for the repayment of borrowings. Gain of the
NVIDIA shares used for the repayment was regarded as realized gain. In addition, NVIDIA shares not utilizing
the collar transactions were all sold in January 2019. The total amount of unrealized gain and loss recorded as“Operating income from SoftBank Vision Fund and Delta Fund” in the fiscal year ended March 31, 2018 and theamount of changes in fair value of NVIDIA shares in the fiscal year ended March 31, 2019 is recorded as“Realized gain and loss on sales of an investment.” The gains and losses arising from the collar transactions arerecorded as “Derivative gain and loss.”61SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2019

2. For investments transferred or agreed to be transferred from the Company to Softbank Vision Fund, gain and loss
on those investments arising from difference between transferred amount and fair value as of each accounting
period end (“gain and loss from the difference”) are presented as “Operating income from SoftBank Vision Fundand Delta Fund.” In the three-month period ended March 31, 2019, certain investments were transferred or agreed
to transfer. In the nine-month period ended December 31, 2018, the “gain and loss from the difference” relating tothose investments were presented as “Gain from financial instruments at FVTPL” of ¥65,843 million. In the
consolidated statement of income for the fiscal year ended March 31, 2019, the “gain and loss from the difference”
are presented as “Operating income from SoftBank Vision Fund and Delta Fund.”
3. It represents the unrealized gains and losses on valuation of NVIDIA shares recorded as “Operating income from
SoftBank Vision Fund and Delta Fund” in the fiscal year ended March 31, 2018, which are reclassified torealized gain on sales of investments due to the disposal of the shares.
4. Unrealized gains and losses on investments are translated using the average exchange rate for the quarter in which
the gains and losses were recognized, while realized gains and losses on disposal of investments are translatedusing the average exchange rate for the quarter in which the shares were disposed. Foreign currency translation
effects are arising from the different foreign currency exchange rates used for unrealized gains and losses andrealized gains and losses.
5. The amount before elimination of inter-company transactions is ¥(33,643) million for the fiscal year ended March
31, 2019 (¥(7,895) million for the fiscal year ended March 31, 2018).
6. Mainly derivative gain arising from collar transactions whose underlying is NVIDIA shares.

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

62

SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2019b. Changes in interests attributable to Third-Party Investors
Changes in interests attributable to Third-Party Investors (“Third-party interests in SoftBank Vision Fund andDelta Fund”) are as follows:(Millions of yen)(For reference purposes only)
Links with the consolidated financial statements

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

Consolidated statement Consolidated statementof incomeof cash flows(Negative figures represent (Negative figures represent
expenses)
payments)(Breakdown)
As of April 1, 2018
Contributions from third-party
investors

1,844,679
2,133,682-

2,133,682

Changes in third-party interests
Attributable to investors entitled to
fixed distribution
Attributable to investors entitled toperformance-based distribution

586,152(586,152)-

Distribution to third-party investors(267,400)-(267,400)

102,712483,440

Fixed distributions(91,694)

Performance-based distributions1(175,706)

Repayment to third-party investors
Exchange differences on translating
third-party interests2(218,988)-(218,988)

58,840--

As of March 31, 2019

4,136,965

Notes:
1. SBIA has a right to receive performance fees based on investment performance of SoftBank Vision Fund and Delta
Fund. However, performance fees from monetization of investments are not paid to SBIA during the investment
period of Softbank Vision Fund (in principle, until November 20, 2022), instead equivalent amount as theperformance fees attributable to SBIA is temporarily paid to the Limited Partners during the period, under the Limited
Partnership Agreement. After the investment period, the equivalent amount is distributed to SBIA as a performancefee, which is given priority over performance-based distribution to Limited Partners from monetization of investments
in post-investment period. The equivalent amount as the performance fees attributable to SBIA, which were
temporarily paid to the Limited Partners, is ¥(47,979) million for the fiscal year ended March 31, 2019.
2. 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 Third-Party Investors as of March 31, 2019 is $30.7 billion.
(3)

Management fees and performance fees to SBIA
Terms and conditions of management fees and performance fees to SBIA, included in income before income tax
from SoftBank Vision Fund and Delta Fund business, are as follows.
a. Management fees to SBIAManagement fees to SBIA are, in accordance with Limited Partnership Agreements, calculated by multiplying 1%
per annum to Equity contributions and paid to SBIA by each fund quarterly. A clawback provision is attached tothe management fees received, which is triggered under certain conditions based on future investment
performance.

63

SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2019b. Performance fees to SBIA
Same as the performance-based distributions, the amount of the performance fees to SBIA is calculated using theallocation method as specified in the Limited Partnership Agreement. SBIA will receive the performance fees
when Softbank Vision Fund and Delta Fund receive cash through disposition, dividend and monetization of aninvestment.
With regard to the performance fee receipt, the performance fees to SBIA from disposition and monetization of
investments are not paid to SBIA during the investment period of Softbank Vision Fund (in principle, up to
November 20, 2022), instead equivalent amount as the performance fees attributable to SBIA is temporarily paid
to the Limited Partners during the period, under the Limited Partnership Agreement. After the investment period,
the equivalent amount is paid to SBIA as a performance fee deducting from the performance-based distributions
to the Limited Partners in monetization of investment in post-investment period. In addition, the performance fees
received, which is triggered under certain conditions based on future investment performance, are subject to aclawback provision.

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

As ofMarch 31, 2018
145,009
168,051
31,314344,374

Tax receivable1
Prepaid expense
Contract assets2
Other
Total

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

Notes:
1. Tax receivable as of March 31, 2019 includes withholding income tax of ¥422,648 million related to dividends within
the group companies. The withholding income tax will be refunded in July 2019.
2. They are recognized as assets in accordance with the adoption of IFRS 15 “Revenue from Contracts with Customers,”

5. Assets classified as held for sale
On June 10, 2016, the Company entered into a variable prepaid forward contract to sell Alibaba shares withMandatory Exchangeable Trust, and received proceeds of ¥578,436 million ($5.4 billion) as advances received on
the sale (the details are described in “(2) Transaction for sale of Alibaba shares by variable prepaid forward
contract” under “Note 12. Interest-bearing debt”). The Company has the option to settle the variable prepaid
forward contract by either delivering cash, a combination of cash and Alibaba shares, or Alibaba shares.
It is probable that the Company settles the variable prepaid forward contract by Alibaba shares and therefore
Alibaba shares of ¥224,201 million related to the settlement were reclassified from “Investments accounted forusing the equity method” to “Assets classified as held for sale” in the consolidated statement of financial position
as of March 31, 2019. The number of Alibaba shares sold by the variable prepaid forward contract is determinedby the share price trend during the Observation Period and the number of Alibaba shares classified as “Assets
classified as held for sale” is calculated by the share price of Alibaba shares as of March 31, 2019. The assets
classified as held for sale are measured by the carrying amount as the fair value after deducting expenses arisingfrom the sale (expected sale price) is greater than the carrying amount.

64

SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2019

6. Property, plant and equipment
The components of the carrying amounts of property, plant and equipment are as follows:(Millions of yen)

As ofMarch 31, 2018
231,895
2,345,098
820,391
88,300293,761
77,402
3,856,847

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

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

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

As ofMarch 31, 2018
Intangible assets with indefinite useful lives
FCC licenses
Trademarks
Other
Intangible assets with finite useful lives
SoftwareTechnologies
Customer relationships
Spectrum migration costs
Management contracts*
Favorable lease contracts
Trademarks
Other
Total

As of
March 31, 2019

3,960,597
664,878
12,226

4,155,126
693,861
12,763739,901
521,603
332,444
125,866
115,333
89,27857,357
165,067
6,784,550

739,879
471,884
249,028
159,522
94,72381,31856,726
177,365
6,892,195

Note:* The management contracts reflect excess earnings in the future expected from the agreements which Fortress entered into
regarding the management of assets under their funds.

8. Investment securities
Of investment securities held by the Company, investment securities transferred or agreed to be transferred from theCompany to Softbank Vision Fund were transferred from “Investment securities” to “Investments from SoftBank
Vision Fund and Delta Fund accounted for using FVTPL” in the consolidated statement of financial position in thefiscal year ended March 31, 2019. The carrying amount of the investment securities is ¥1,832,387 million as of March
31, 2018.

65

SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2019

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

As ofMarch 31, 2018
293,679
46,684
106,880
45,943
215,651(32,445)676,392

Installment receivables
Loan receivables1
Advance payments2
Receivables for banking business
Lease and guarantee deposits
Other
Allowance for doubtful accounts
Total

As of
March 31, 2019414,593
211,280
166,485
147,977
53,332
231,106(38,917)
1,185,856

Notes:
1. ¥108,992 million of convertible promissory note issued by WeWork Companies Inc. (“WeWork”) is included in theloan receivables as of March 31, 2019.
2. Advance payments as of March 31, 2019 are related to the acquisition of WeWork shares.

10. Income taxes
On December 19, 2018, SoftBank Corp. shares were listed on the Tokyo Stock Exchange First Section. Along withthe listing, a portion of SoftBank Corp. shares (ownership percentage 33.50%) held by SoftBank Group Japan
Corporation, a wholly-owned subsidiary of the Company, was disposed and ¥2,349,832 million of proceeds wasreceived. As a result, the ownership percentage in SoftBank Corp. by the Company has changed from 99.99% to66.49%. As SoftBank Corp. remains a subsidiary, ¥750,804 million, the equivalent amount of income taxes for gainon sales of SoftBank Corp. shares on a consolidation basis, is deducted from capital surplus as “Changes in interestsin subsidiaries.”
In regard to the transaction, a loss carryforward whose deferred tax asset was not recognized, was used and income
taxes decreased by ¥345,228 million. Accordingly, a deductible temporary difference, associated with an investment
in SoftBank Corp. whose deferred tax asset was not recognized, was reversed and income taxes decreased by ¥60,349
million.
11. Other current liabilities
The components of other current liabilities are as follows:(Millions of yen)

As ofMarch 31, 2018
6,738
225,036
173,624
119,525
74,21659,822658,961

Withholding income tax1
Contract liabilities2
Deferred revenue
Short-term accrued employee benefits
Consumption tax payable and otherAccrued interest expense
Other
Total

As of
March 31, 2019428,796
252,81235,339201,979
112,090
69,97757,362
1,158,355

Notes:
1. Withholding income tax as of March 31, 2019 includes withholding income tax of ¥422,648 million related to dividends
within the group companies. Payment of the withholding income tax was made in April 2019.
2. They are recognized as liabilities in accordance with the adoption of IFRS 15 “Revenue from Contracts with
Customers.”

66SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2019

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

As ofMarch 31, 2018
Current
Short-term borrowings1
Commercial paper
Current portion of long-term borrowings1
Current portion of corporate bonds
Current portion of lease obligations
Current portion of financial liabilities relating to sale ofshares by variable prepaid forward contract2
Current portion of installment payables
Total
Non-current
Long-term borrowings1
Corporate bonds
Lease obligations
Financial liabilities relating to sale of shares by variable
prepaid forward contract2
Installment payables
Total

As of
March 31, 2019957,573
100,000
1,093,705
590,277455,670

499,179
42,000718,019
1,042,253
437,397-

730,601

20,1803,217,405

11,5113,480,960

5,121,591
7,234,049
766,204

4,910,794
6,538,785
749,252

688,332-

14,607
13,824,783

5,315
12,204,146

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

As ofMarch 31, 2018
Current
Short-term borrowings
Current portion of long-term borrowings
Total
Non-current
Long-term borrowings
Total
SoftBank Vision Fund and Delta Fund interest-bearing debt
(before elimination of inter-company transactions)Eliminated amount of inter-company transactions
SoftBank Vision Fund and Delta Fund interest-bearing debt
(after elimination of inter-company transactions)

As of
March 31, 201987,259313,143
400,402900,406
900,406

108,749
108,749

12,764
12,764509,151

913,170(10,744)(876,599)

498,407

36,571

2. The details are described in “(2) Transaction for sale of Alibaba shares by variable prepaid forward contract.”67SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2019(2) Transaction for sale of Alibaba shares by variable prepaid forward contract
On June 10, 2016, West Raptor Holdings, LLC (“WRH LLC”), a wholly-owned subsidiary of the Company,
entered into a variable prepaid forward contract to sell Alibaba shares with a newly formed trust, Mandatory
Exchangeable Trust (the “Trust”), and received proceeds of ¥578,436 million ($5.4 billion) as advances received
on the sale.
The Trust, on the other hand, utilized Alibaba shares scheduled to be transferred from WRH LLC at the time ofsettlement under the contract and issued $6.6 billion of Mandatory Exchangeable Trust Securities (“Trust
Securities”) which are mandatorily exchangeable into American Depositary Shares (“ADSs”) of Alibaba. The
proceeds from the sale received by WRH LLC from the Trust was $5.4 billion, which is after certain amounts fromthe $6.6 billion total of Trust Securities were deducted in order to purchase U.S. Treasury securities, which would
fund distributions on the Trust Securities, and cover expenses for the issuance of the Trust Securities.
The settlement of the Alibaba shares based on the variable prepaid forward contract is conducted concurrently
with the exchange of Trust Securities. At the exchange date, which is expected to be 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 isclassified as a hybrid financial instrument with 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 thevariable prepaid forward contract are measured at amortized cost and embedded derivatives are measured at fairvalue; ¥730,601 million is recognized as the current portion of financial liabilities relating to the sale of sharesthrough the variable prepaid forward contract in interest-bearing debt (current liabilities) (¥688,332 million
recognized as financial liabilities relating to the sale of shares through the variable prepaid forward contract ininterest-bearing debt (non-current liabilities) as of March 31, 2018) and ¥749,846 million is recognized as
derivative financial liabilities (current liabilities) in the consolidated statement of financial position as of March 31,
2019 (¥714,126 million recognized as derivative financial liabilities (non-current liabilities) as of March 31,2018); ¥2,876 million is recognized as a derivative gain in the consolidated statement of income for the fiscal year
ended March 31, 2019 (¥604,156 million of derivative loss for the fiscal year ended March 31, 2018).

Alibaba shares held by WRH LLC are pledged as collateral. The carrying amount of Alibaba shares pledged ascollateral by the Company is as follows.

(Millions of yen)

Fiscal year ended
March 31, 2018
Assets classified as held for sale*
Investments accounted for using the equity method-

Fiscal year ended
March 31, 2019
224,201

217,182

39,256Note:* The Company reclassified Alibaba shares related to the settlement from “Investments accounted for using the equity
method” to “Assets classified as held for sale” in the consolidated statement of financial position as of March 31,
2019. The details are described in “Note 5. Assets classified as held for sale.”

68SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2019

Outline of the transaction
subsidiary
wholly-owned subsidiary
third party to
SoftBank

West Raptor Holdings, LLC
Approximately $5.4 billion
for advances received
for the sale of Alibaba sharesby variable prepaid forward contract

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(3) 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, 2018(60,829)
20,000(40,829)

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

Fiscal year ended
March 31, 2019
(7,411)(58,000)(65,411)(4) 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 sale-leaseback of newly acquired
equipment
Total

Fiscal year ended
March 31, 2018
7,176,036
899,079

Fiscal year ended
March 31, 2019
4,959,821
747,744472,231481,547

8,547,346

6,189,112(5) 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, 2018
(4,988,513)(474,975)(502,520)(37,180)(6,003,188)

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

69

Fiscal year ended
March 31, 2019
(5,526,771)(1,061,732)(521,205)(18,671)(7,128,379)

SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2019

13. Foreign currency exchange rates
Exchange rates of the major currencies used for translating financial statements of foreign operations are as follows:(1) Rate at the end of the year
(Yen)
As of
March 31, 2019110.99144.98

As ofMarch 31, 2018106.24148.84USD
GBP(2) Average rate for the quarter

For the fiscal year ended March 31, 2018

USD
GBP

Three-month period
endedJune 30, 2017111.61142.92Three-month period
ended
September 30, 2017111.38146.20Three-month period
ended
December 31, 2017112.74150.77(Yen)
Three-month period
ended
March 31, 2018108.85151.01Three-month period
ended
September 30, 2018111.55145.84Three-month period
ended
December 31, 2018112.83144.48(Yen)
Three-month period
ended
March 31, 2019110.46143.99For the fiscal year ended March 31, 2019

USD
GBP

Three-month period
endedJune 30, 2018108.71147.54

14. Equity(1) Capital surplus
For the fiscal year ended March 31, 2019a. In August, 2018, SoftBank Corp. acquired Yahoo Japan Corporation shares mainly from Altaba Inc. at ¥221.0
billion (ownership percentage 10.78%). In addition, Yahoo Japan Corporation acquired its own shares from
SoftBank Group Japan Corporation, a wholly-owned subsidiary of the Company, at ¥220.0 billion (ownership
percentage 10.73%). As a result of the transaction, the ownership percentage in Yahoo Japan Corporation by theCompany has changed from 42.95 % to 48.17%. Subsequently, ¥56,632 million is deducted from capital surplus
as “Changes in interests in subsidiaries.”b. On December 19, 2018, a portion of SoftBank Corp. shares (ownership percentage 33.50%) held by SoftBank
Group Japan Corporation, a wholly-owned subsidiary of the Company, was disposed. As a result, the ownership
percentage in SoftBank Corp. by the Company has changed from 99.99% to 66.49%.
Associated with the transaction, ¥1,221,363 million, the amount equivalent to gain on the disposal of SoftBank
Corp. shares after considering taxes on a consolidation basis, is recorded as “Changes in interests in subsidiaries”
under capital surplus.

70SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2019(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) Accumulated other comprehensive income
The components of accumulated other comprehensive income are as follows:(Millions of yen)

As ofMarch 31, 2018

As ofMarch 31, 2019

Available-for-sale financial assets

63,700-Equity financial assets at FVTOCI

-

6,661

Debt financial assets at FVTOCI-

267(55,286)(45,791)

309,545

329,131

317,959

290,268

Cash flow hedges
Exchange differences on translating
foreign operations
Total

In accordance with 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 ofretained earnings and accumulated other comprehensive income. The details are described in “(2) Effect of adopting
new standards and interpretations” under “Note 1. Significant accounting policies.”

15. Gain relating to loss of control over subsidiaries
On June 26, 2018, Arm Limited, a British subsidiary of the Company, sold a 51% equity interest in its Chinese
subsidiary, Arm Technology (China) Co., Ltd. (“Arm China”), for $845 million to entities representing certain
institutional investors and certain of Arm’s ecosystem partners in order to form a joint venture for Arm’s
semiconductor technology IP business in China.
As a result of the transaction, Arm China is no longer considered as a subsidiary of the Company and has become
an associate accounted for using the equity method. Gain relating to loss of control over subsidiaries recognizedarising from the transaction is ¥176,261 million.

71SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 201916. Other operating loss
The components of other operating income and loss are as follows:(Millions of yen)

Fiscal year ended
March 31, 2018
SoftBank segment
Write-down of inventories
Gain on remeasurement of spectrum migration
costs
Other
Sprint segment
Loss on disposal of property, plant andequipment1
Legal reserves
Reversal of favorable lease
Gain and loss on contract termination
Gain on spectrum license exchange
OtherYahoo Japan segment
Gain from remeasurement relating to businesscombination
Insurance income
Other
Brightstar segment
Impairment loss on goodwill
Impairment loss on non-current assets
Company-wide
Expenses resulting from resignation of director
Other
Loss on liquidation of a subsidiary2
Income and loss on equity method investments
at Fortress
Acquisition-related costs
Other
Total

Fiscal year ended
March 31, 2019(13,754)

-

4,044

-

-

(81)

(95,213)(126,169)

40,159(24,411)53,435(4,996)(8,309)(3,810)10,800
(60)

372

3,751

4,973
4,719

(6,669)(43,128)(7,369)-(1,577)--(14,842)

14,953(1,473)(6,123)(3,788)(77,704)(146,862)

Notes:
1. Mainly, ¥54,744 million of loss related to cell site construction costs no longer expected to be used as a result ofchanges in Sprint’s network plans and ¥71,425 million of loss resulted from the write-off of leased devices
related to lease cancellations prior to the end of the scheduled customer lease terms, where customers did not
return the devices to Sprint, are recognized for the fiscal year ended March 31, 2019.
2. Due to the realization of a foreign currency translation adjustment resulted from the liquidation of Kahon 2 Oy, awholly-owned subsidiary of the Company, for the fiscal year ended March 31, 2019.

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

Fiscal year ended
March 31, 2018
Interest expenses(516,132)

72

Fiscal year ended
March 31, 2019
(633,769)

SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 201918. Derivative gain (loss)
For the fiscal year ended March 31, 2019
A derivative gain was recorded for ¥2,876 million related to the Alibaba share collar transaction included in thevariable prepaid forward contract. The details are described in “(2) Transaction for sale of Alibaba shares by
variable prepaid forward contract” under “Note 12. Interest-bearing debt.”
In addition, derivative gain of ¥177,373 million was recorded in SoftBank Vision Fund. The details are described in“b. Income and loss arising from the SoftBank Vision Fund and Delta Fund business” in “(1) Income and loss
arising from the SoftBank Vision Fund and Delta Fund business included in the consolidated statement of income”
under “Note 3. SoftBank Vision Fund and Delta Fund business.”

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

Fiscal year ended
March 31, 201845,186

Fiscal year ended
March 31, 2019
44,068Interst income
Gain from remeasurement relating todiscontinuing the use of the equity method2

19,341

32,404-

24,842

Impairment loss on equity method investments3(5,982)(55,292)

Loss on redemption of corporate bonds
Loss on exchage of coroporate bonds(7,293)(14,538)(19,809)-(18,890)-

4,982
17,535

1,196
32,680

Dilution gain from changes in equity interest1

Loss on sales of cryptocurrency
Other
Total

Notes:
1. Mainly, dilution gain arising from changes in Alibaba’s equity interest held by the Company due to the exerciseof stock options in Alibaba.
2. Gain from remeasurement relating to discontinuing the use of the equity method was recorded for ¥ 21,903
million related to PT Tokopedia in Indonesia, an equity method associate of the Company. In September 2018,
regarding PT Tokopedia, an equity method associate, the voting proxy deed was entered into between the
Company and a shareholder of PT Tokopedia. As a result, the number of voting rights in PT Tokopedia
exercisable by the Company decreased and the Company had no significant influence over PT Tokopedia.
Consequently, PT Tokopedia was no longer qualified as an equity method associate and equity interests in PT
Tokopedia continuously held by the Company on the date of discontinuing the use of the equity method was
remeasured. All investments in PT Tokopedia were subsequently transferred from the Company to SoftBank
Vision Fund in the three-month period ended December 31, 2018.
As a result of the discontinuing the use of the equity method of PT Tokopedia and subsequent to the transferring
PT Tokopedia shares to SoftBank Vision Fund, ¥21,903 million arising from difference between the carrying
amount before discontinuing the use of the equity method and the transferred amount is recorded as “Gain fromremeasurement relating to discontinuing the use of the equity method” and ¥67,306 million arising fromdifference between transferred amount and fair value on the date of discontinuing the use of the equity method isrecorded as “Operating income from SoftBank Vision Fund and Delta Fund” in the consolidated statement ofincome for the fiscal year ended March 31, 2019.
3. In regard to the investment in OneWeb Global Limited, its business result and recent business plan were lessthan those at the initial investment by the Company and therefore an impairment test was conducted and ¥49,549
million of impairment loss was recognized for the fiscal year ended March 31, 2019. Fair value less disposal costmeasured using the income approach was used for the recoverable amount of investment in OneWeb Global
Limited.

73

SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 201920. Earnings per share(1) Basic earnings per share
Fiscal year ended
March 31, 2018
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 parent*
Net income used in the calculation of basic earnings per share
Weighted-average number of ordinary shares(Thousands of shares)
Basic earnings per share (Yen)

Fiscal year ended
March 31, 2019

1,038,977

1,411,199(21,914)1,017,063(32,007)
1,379,192

1,089,465

1,087,561

933.54

1,268.15

Note:* Net income not-attributable to ordinary shareholders of the parent represents net income attributable to owners of other
equity instruments.

(2) Diluted earnings per share
Fiscal year ended
March 31, 2018
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
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 rights
Total
Diluted earnings per share (Yen)74

Fiscal year ended
March 31, 2019

1,017,063(26,190)
990,873

1,379,192(10,221)
1,368,971

1,089,465

1,087,561

1,343
1,090,808

1,923
1,089,484

908.381,256.53

SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 201921. Supplemental information to the consolidated statement of cash flows(1) Distribution and repayment from SoftBank Vision Fund and Delta Fund to third-party investors
For the fiscal year ended March 31, 2019
The distributions and repayments from SoftBank Vision Fund and Delta Fund to third-party investors are¥(267,400) million and ¥(218,988) million respectively. The details are described in “(2) Third-party interests in
SoftBank Vision Fund and Delta Fund” under “Note 3. SoftBank Vision Fund and Delta Fund business.”(2) Proceeds from the partial sales of shares of subsidiaries to non-controlling interests
For the fiscal year ended March 31, 2019
¥2,349,832 million of proceeds received by sales of SoftBank Corp. shares is included in “Proceeds from thepartial sales of shares of subsidiaries to non-controlling interests.”(3) Non-cash transactions related to collar transactions using NVIDIA shares
For the fiscal year ended March 31, 2019
In January 2019, SoftBank Vision Fund executed an unwind of the collar transactions and utilized the NVIDIA
shares for the repayment of borrowings. This transaction includes a non-cash transaction since the borrowings was
settled with the NVIDIA shares and the remaining portion involved a cash settlement. In the consolidated statementof cash flows for the fiscal year ended March 31, 2019, ¥2,634 million was recorded as “other” in cash flows fromfinancing activities, which is the net amount of the proceeds from disposal of shares of ¥466,270 million, theproceeds from collar options settlement of ¥171,449 million, loan repayment of ¥(621,938) million, and interest
payment of ¥(13,147) million.

22. Significant subsequent events(Share split)
The Company passed a resolution to conduct a share split and make a partial amendment of the articles ofincorporation at the Board of Directors meeting held on May 9, 2019.
(1) Purpose of the share split
The Company conducts the share split aiming to reduce the investment unit of its ordinary shares and further
improve an environment where investors can find it easier to make investments.
(2) Method of the share spilt
a. Number of shares to be increased upon the share split
The aggregate number of issued ordinary shares of the Company as of June 27, 2019 multiplied by one.
Number of shares increased by the share split:
Number of issued and outstanding shares before the share split:
Number of issued and outstanding shares after the share split:

1,100,660,365 shares
1,100,660,365 shares
2,201,320,730 sharesb. Method of the split
With the record date of June 27, 2019, ordinary shares of the Company held by shareholders listed or recorded in
the shareholder registry by the end of the date will be split at a ratio of two-for-one.

75

SoftBank Group Corp. Consolidated Financial Report
For the Fiscal Year Ended March 31, 2019c. Record dateJune 27, 2019
d. Effective dateJune 28, 2019(3) Partial amendment of the articles of incorporation regarding the share split
Regarding the share split, in accordance with the Article 184, Paragraph 2 of the Companies Act of Japan, theamendment of the articles of incorporation is made to increase the aggregate number of authorized shares of theCompany from 3,600,000,000 shares to 7,200,000,000 shares effective as of June 28, 2019.
(4) Impacts on the earnings per share information
Earnings per share information assuming that the share split was conducted at the beginning of the fiscal year
ended March 31, 2018 is as follows.

Equity per share attributable to owners of the parent (Yen)
Basic earnings per share (Yen)
Diluted earnings per share (Yen)76

Fiscal year ended
March 31, 2018
2,151.13
466.77454.19Fiscal year ended
March 31, 2019
3,380.33
634.08628.27