This English translation of the financial report was prepared for reference purposes only and is qualified in its entirety by the original
Japanese version. The financial information contained in this report is derived from our unaudited consolidated financial statements
appearing in item 3 of this report.

SoftBank Group Corp.
Consolidated Financial Report
For the Three-month Period Ended June 30, 2018 (IFRS)Tokyo, August 6, 2018

1.

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

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

OperatingincomeIncomebefore incometax

Net income

Net income
Total
attributable tocomprehensive
owners of theincomeparentAmountAmountAmountAmount%Amount974.4 ¥313,687-¥311,528 33.4

Net sales
Amount%%%Three-month period ended¥2,272,783 4.0 ¥714,993 49.2 ¥572,304 637.8 ¥328,120
June 30, 2018%

Three-month period ended¥2,186,059 2.8 ¥479,273 50.1 ¥77,568 (78.2) ¥30,540 (88.8)
June 30, 2017

Basic earnings per
share (yen)Diluted earnings per
share (yen)Three-month period ended
June 30, 2018

¥281.55¥280.14

Three-month period ended
June 30, 2017

¥5.07

¥4.22

¥5,521 (97.8) ¥233,569%-(2) Financial Position2.

Total assets

Total equity

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

As of June 30, 2018¥32,268,364¥6,821,174¥5,689,782

17.6

As of March 31, 2018

¥31,180,466¥6,273,022¥5,184,176

16.6

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

Note:
Revision of forecasts on the dividends: No

Second quarter

Third quarter

Fourth quarter

Total

(yen)

(yen)

(yen)

(yen)

(yen)

-

22.00

-

22.00

44.00

22.00

-

22.00

44.00

-

* Notes(1) Significant changes in scope of consolidation (changes in scope of consolidation of specified subsidiaries): No
Newly consolidated: None
Excluded from consolidation: None
Note:
* Foreign subsidiaries prepare stand-alone financial statements only under circumstances where it is necessary under
their local laws and practices. Applicability of Cabinet Office Ordinance on Disclosure of Corporate Affairs, etc.
Article 19, Paragraph (10), Item (i) to (iii), is determined by using the financial statements.
On the other hand, for foreign subsidiaries that do not prepare stand-alone financial statements, information on thecapital and net assets for those companies is not available. Therefore, Cabinet Office Ordinance on Disclosure of
Corporate Affairs, etc. Article 19, Paragraph (10), Item (i) is used to determine whether the companies are thespecified subsidiaries.
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: No
Please refer to page 34 “Changes in Accounting Policies” under “2. Notes to Summary Information” for details.
(3) Number of shares issued (common stock)[1] Number of shares issued (including treasury stock):
As of June 30, 2018:
1,100,660,365 shares
As of March 31, 2018: 1,100,660,365 shares[2] Number of shares of treasury stock:
As of June 30, 2018:
11,162,819 shares
As of March 31, 2018:
11,162,425 shares[3] Number of average shares outstanding during three-month period (April-June):
As of June 30, 2018:
1,089,497,822 shares
As of June 30, 2017:
1,089,359,397 shares* This condensed interim consolidated financial report is not subject to interim review procedures by certified public
accountants or an audit firm.
* Note to forecasts on the consolidated results of operations and other items
Descriptions regarding the future are estimated based on the information that the Company is able to obtain at the present
point in time and assumptions which are deemed to be reasonable. However, actual results may be different due to various
factors.
On August 6, 2018 (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 our website in both Japanese and English athttps://www.softbank.jp/en/corp/irinfo/. The Data Sheet will also be posted on the Company’s website around 4 p.m. on
the same day at https://www.softbank.jp/en/corp/irinfo/presentations/.

SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2018

(Appendix)
Contents
1. Results of Operations ................................................................................................................................................. P. 2
(1) Overview of Results of Operations ..................................................................................................................... P. 2
a. Consolidated Results of Operations .................................................................................................................. P. 3
b. Results by Segment .......................................................................................................................................... P. 8
(2) Overview of Financial Position ........................................................................................................................ P. 24(3) Overview of Cash Flows .................................................................................................................................. P. 31(4) Forecasts ........................................................................................................................................................... P. 33
2. Notes to Summary Information ............................................................................................................................... P. 34
Changes in Accounting Policies .............................................................................................................................. P. 34
3. Condensed Interim Consolidated Financial Statements and Primary Notes ............................................................ P. 34(1) Condensed Interim Consolidated Statement of Financial Position .................................................................... P. 35(2) Condensed Interim Consolidated Statement of Income and Condensed Interim Consolidated Statement ofComprehensive Income .................................................................................................................................... P. 37(3) Condensed Interim Consolidated Statement of Changes in Equity ................................................................... P. 39(4) Condensed Interim Consolidated Statement of Cash Flows .............................................................................. P. 42(5) Significant Doubt about Going Concern Assumption ....................................................................................... P. 44(6) Notes to Condensed Interim Consolidated Financial Statements ...................................................................... P. 44

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
SoftBank Vision Fund L.P.
SoftBank Vision Fund (AIV M1) L.P.
SoftBank Vision Fund (AIV M2) L.P.
Delta Fund
Brightstar
Alibaba
The first quarter
The fiscal year
The previous fiscal year

SoftBank Vision Fund (AIV S1) L.P.
SB Delta Fund (Jersey) L.P.
Brightstar Global Group Inc.
Alibaba Group Holding Limited
Three-month period ended June 30, 2018
Fiscal year ending March 31, 2019
Fiscal year ended March 31, 20181

SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2018

1. Results of Operations(1) Overview of Results of Operations
1. Highlights of results
 Operating income: ¥715.0 billion (increased 49.2% yoy)
- Boosted by valuation gain of ¥244.9 billion at SoftBank Vision Fund: valuation gain of ¥164.3 billion wasrecorded for Flipkart based on the expected sales price, following the sales agreement- Recorded one-time gain of ¥161.3 billion following Arm’s China business becoming an associate from a subsidiary due to the establishment of a joint venture Net income attributable to owners of the parent: ¥313.7 billion (¥5.5 billion in the same period of the previous fiscal year)- Recognized gain of ¥94.5 billion from financial instruments at FVTPL, reflecting higher fair values of both
Uber1 and Grab1
2. Cluster of No.1 Strategy progressed Sprint agreed to merge with T-Mobile
 SoftBank Corp. made a preliminary application to list its shares on the Tokyo Stock Exchange
3. Tender offer by SoftBank Corp. for Yahoo Japan Corporation shares and acquisition by Yahoo Japan Corporation of its own shares by self-tender offer
 Promoting further growth of SoftBank Corp. and Yahoo Japan Corporation

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. See “1. Significant accounting policies” under “(6)Notes to Condensed Interim Consolidated Financial Statements” in “3. Condensed Interim Consolidated Financial Statements and Primary Notes” for details.
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 has revised its segment classifications for management purposes since 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” for a summary of reportable segments.

1

These investments are held by a wholly owned subsidiary of the Company.

2

SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2018a. Consolidated Results of Operations

Three months ended June 30
2017
2018
PreviousNew
standards standards
Net sales
Operating income (excluding income from SoftBank Vision Fundand Delta Fund)
Operating income from SoftBank
Vision Fund and Delta Fund
Operating income
Income before income tax
Net income
Net income attributable to owners of
the parent(Millions of yen)Three months ended
June 30, 2018

ChangeChange %Impact of adopting
new standards

2,186,059

2,272,783

86,7244.0%

25,453374,044475,049

101,005

27.0%

26,708105,229479,273
77,56830,540239,944714,993572,304
328,120

134,715
235,720494,736
297,580

128.0%
49.2%
637.8%
974.4%

26,70831,57015,577

5,521

313,687

308,166-

13,512

Notes:
1. The new standards have been adopted since the first quarter. Figures for the same period of the previous fiscal year, to which the
new standards are not applied, are presented under the “previous standards.” See “(3) Effect of adopting new standards and interpretations” under “1. Significant accounting policies” in “(6) Notes to Condensed Interim Consolidated Financial Statements” in “3.
Condensed Interim Consolidated Financial Statements and Primary Notes” for details regarding the financial impacts of adopting
the new standards.
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 in the condensed interim consolidated statement of income as “Operating income from SoftBank Vision Fund andDelta Fund.”Reference: Average exchange rates used for translations

USD / JPY

Q1

Q2

Q3

Fiscal year ended
March 2018
Q4

¥111.61¥111.38¥112.74¥108.85

Fiscal year ending
March 2019
Q1
¥108.71

An overview of the consolidated results of operations for the first quarter is as follows:(a) Net Sales
Net sales increased ¥86,724 million (4.0%) year on year, to ¥2,272,783 million. Net sales increased in the following segments: SoftBank, Yahoo Japan, and Brightstar. However, net sales decreased in the Sprint segment and the Arm segment.
(b) Operating Income (excluding income from SoftBank Vision Fund and Delta Fund)
Operating income (excluding income from SoftBank Vision Fund and Delta Fund) increased ¥101,005 million (27.0%)
year on year, to ¥475,049 million. Segment income increased ¥1,453 million in the SoftBank segment and ¥152,127 million
in the Arm segment. However, segment income deteriorated ¥33,879 million in the Sprint segment, ¥12,154 million in theYahoo Japan segment, and ¥4,017 million in the Brightstar segment.
The segment income of the Arm segment includes gain relating to loss of control over subsidiaries of ¥161,347 million,
which was recognized due to Arm’s Chinese subsidiary becoming an associate accounted for using the equity method,
following the establishment of a joint venture.

3

SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2018(c) Operating Income from SoftBank Vision Fund and Delta Fund
Operating income from SoftBank Vision Fund and Delta Fund was ¥239,944 million (compared with income of ¥105,229
million in the same period of the previous fiscal year), out of which unrealized gain on valuation of investments at SoftBank
Vision Fund was ¥244,902 million. This was mainly due to the recording of unrealized valuation gain of ¥164,253 million
recognized accompanying the agreement on the sale of Flipkart Private Limited (“Flipkart”), and an increase in the fairvalues of WeWork Companies Inc. (collectively with its affiliates, “WeWork”) and other investments. 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 ¥235,720 million (49.2%) year on year, to ¥714,993 million.

(e) Finance Cost
Finance cost increased ¥27,597 million (22.8%) year on year, to ¥148,467 million. Interest expense increased ¥17,442
million at SoftBank Group Corp., following the issuance of foreign currency-denominated senior notes in September 2017and borrowings using Alibaba shares made through its wholly owned subsidiary in March 2018. Interest expenses arose at
SoftBank Vision Fund from the partial crystallization of investment securities held. Further, interest expense at Sprintincreased ¥2,357 million ($38 million) year on year due to spectrum financing that was closed in March 2018.

(Millions of yen)Three months ended June 30
2017
2018
Finance Cost
SoftBank Group Corp.

2

SprintReference: In U.S. dollars

Change(120,870)(148,467)(27,597)(41,528)(58,970)(17,442)(68,663)(71,020)(2,357)$(615) million$(653) million$(38) million(f) Income on Equity Method Investments
Income on equity method investments increased ¥36,071 million year on year, to ¥37,705 million. This was mainly due toan increase of ¥22,869 million (231.5%) in income on equity method investments related to Alibaba, to ¥32,749 million.
The difference between Alibaba’s net income (IFRS basis) for the three months ended March 31, 2018, ((A) in the tablebelow) and net income (US GAAP basis) ((B) in the table below) is mainly due to the fact that certain investments of
Alibaba are evaluated at fair value as financial instruments at FVTPL with its changes being recognized as gain or loss on
an IFRS basis, while they are evaluated at acquisition cost on a US GAAP basis. For the three months ended March 31,
2017, the reconciliation adjustments to IFRSs included (i) a loss recognized for a change in fair value of the non-controllinginterests of Alibaba on its subsidiaries, which is recorded as a financial liability under IFRSs due to a put option assigned
onto, and (ii) a negative adjustment for gain on sales of financial instruments at FVTPL held by Alibaba, since valuation
gain on the applicable FVTPL instruments had been recorded under IFRSs in the prior period.

2

Includes interest expenses arising from borrowings by a wholly owned subsidiary using Alibaba shares

4SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2018

Reference: Net Income of Alibaba and the Company’s Income on Equity Method Investments
Three months ended March 313
2017
2018

ChangeAlibaba
Net income (US GAAP)Net income (IFRSs)

Million CNY

Million CNY

10,647(B) 7,669

Million CNY(2,978)Million CNY

Million CNY

Million CNY

2,079(A) 6,566

4,487

2017

Three months ended June 30
2018

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

29.86%

29.33%(0.53) pp

Million CNY

Million CNY

Million CNY

619

1,930

1,311

¥15.96¥16.97¥1.01

Million yen

Million yen

Million yen

9,880

32,74922,869(g) Foreign Exchange Gain and Loss
Foreign exchange gain was ¥12,925 million (loss of ¥1,796 million in the same period of the previous fiscal year).

(h) Derivative Gain and Loss
Derivative loss was ¥54,080 million (loss of ¥257,059 million in the same period of the previous fiscal year). This was
mainly attributable to losses on forward foreign exchange contracts related to loans to overseas subsidiaries and equity
derivative transactions.

(i) Gain and Loss from Financial Instruments at FVTPL
Gain from financial instruments at FVTPL was ¥94,542 million (gain of ¥24,613 million in the same period of the previous
fiscal year). This was mainly due to the uplift in the fair value of investments in Uber Technologies, Inc. (“Uber”) and
GRAB HOLDINGS INC. (“Grab”) held by a wholly owned subsidiary of the Company.

3

The Company applies the equity method to the financial statements of Alibaba on a three-month 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SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2018(j) Changes in Third-party Interests in SoftBank Vision Fund and Delta FundThe changes in third-party interests in SoftBank Vision Fund and Delta Fund amounted to an increase of ¥72,889 million,
whose impact on income was negative (increase of ¥43,589 million in the same period of the previous fiscal year). The
breakdown is as below:(Millions of yen)Three months ended June 30
2017
2018
Changes in third-party interests of SoftBank Vision Fund
Attributable to investors entitled to fixed distribution
Attributable to investors entitled to performance-based distribution
Changes in third-party interests of Delta Fund
Attributable to investors entitled to fixed distribution
Changes in third-party interests of SoftBank Vision Fund and Delta Fund

(43,589)(71,315)-(17,899)(43,589)(53,416)-(1,574)-(1,574)(43,589)(72,889)

The changes in third-party interests in SoftBank Vision Fund and Delta Fund are gain and loss on investments at the both
Funds, net of management and performance fees payable to the Funds’ manager SB Investment Advisers (UK) Limited(the Company’s wholly owned subsidiary) and operating and other expenses of the Funds, distributed to third-party investors in proportion of their interests. The distribution is either fixed or performance-based. See “(a) Contribution from Limited Partners other than the Company” under “e. Contribution from Limited Partners to SoftBank Vision Fund and Delta
Fund” in “(4) Significant accounting policies for SoftBank Vision Fund and Delta Fund” in “1. Significant accounting
policies” in “(6) Notes to Condensed Interim Consolidated Financial Statements” in “3. Condensed Interim Consolidated
Financial Statements and Primary Notes” for details.
(k) Other Non-operating Income and Loss
Other non-operating loss was ¥12,425 million, compared with a loss of ¥4,638 million in the same period of the previous
fiscal year. Loss on redemption of corporate bonds of ¥14,538 million was recognized owing to the early redemption offoreign currency-denominated senior notes issued in 2013.
(l) Income before Income Tax
As a result of (d) to (k), income before income tax increased ¥494,736 million (637.8%) year on year, to ¥572,304 million.
(m) Income Taxes
Income taxes were ¥244,184 million, compared with ¥47,028 million in the same period of the previous fiscal year. Capitalgains on investments in entities that operate businesses in India are subject to tax in India. Consequently, a tax effect wasrecognized for the aforementioned unrealized valuation gain in Flipkart, which mainly operates businesses in India, anddeferred tax of ¥71,746 million was recorded. The Company estimates that the sale of Flipkart shares will occur within 24
months of the inception of the investment and has calculated the deferred tax at 43.68%, being the Indian short-term capitalgains tax rate expected to apply to the sale of Flipkart shares.

6SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2018(n) Net Income
As a result of (l) and (m), net income increased ¥297,580 million (974.4%) year on year, to ¥328,120 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 and Sprint
from (n), net income attributable to owners of the parent increased ¥308,166 million year on year, to ¥313,687 million.

(p) Comprehensive Income
Comprehensive income increased ¥77,959 million year on year, to ¥311,528 million. Of this, comprehensive income attributable to owners of the parent increased ¥71,362 million, to ¥279,616 million.

Tender Offer by SoftBank Corp. for Yahoo Japan Corporation Shares and Acquisition by Yahoo Japan Corporation of Its Own Shares by Self-tender Offer
SoftBank Corp. is implementing a tender offer (the “Tender Offer”) for 613,888,888 common shares (equivalent to¥221.0 billion) of Yahoo Japan Corporation between July 11 and August 8, 2018, for the purpose of acquiring a portionof the common shares of Yahoo Japan Corporation held by Altaba Inc. (“Altaba”) of the United States. Further, SoftBank Group Corp. decided to accept the self-tender offer (the “Self-tender Offer”) that Yahoo Japan Corporation is
implementing for its own shares between July 11 and August 9, 2018, and tender 611,111,111 common shares (equivalent to ¥220.0 billion) of Yahoo Japan Corporation held by SoftBank Group Japan Corporation (“SBGJ”), a wholly
owned subsidiary of the Company.
In the event that SoftBank Corp. purchases the maximum number of shares to be tendered by Altaba in the Tender
Offer, and Yahoo Japan Corporation purchases all of the shares to be tendered by SBGJ in the Self-tender Offer, theshareholding ratio of Yahoo Japan Corporation shares held by the Company is expected to be 48.17% (all of which areindirect holdings through subsidiaries, including SoftBank Corp.’s shareholding of 12.08%), compared with 42.95%(all of which are indirect holdings through subsidiaries) as of the end of the first quarter.

7

SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2018

b. Results by Segment
The Company’s reportable segments are the components of its business activities for which decisions on resource allocation and assessment of performance are made. Previously, the Company had six reportable segments: Domestic Telecommunications, Sprint, Yahoo Japan, Distribution, Arm, and SoftBank Vision Fund and Delta Fund. In accordance withchanges in the Company’s organization based on its unique organizational strategy, Cluster of No.1 Strategy, the Company
has revised its segment classifications for management purposes since the first quarter, comprising six reportable segments: SoftBank, Sprint, Yahoo Japan, Arm, SoftBank Vision Fund and Delta Fund, and Brightstar. SoftBank Commerce& Service Corp. (previously classified under the Distribution segment) has been added to the former Domestic Telecommunications segment to establish the SoftBank segment. As a result of the change in classification of SoftBank Commerce& Service Corp., the former Distribution segment has become the Brightstar segment. The following is a summary of thereclassified reportable segments.
The main businesses and core companies of each reportable segment are as follows:
Main businesses
Segments

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.
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

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

Fortress Investment Group LLC
Fukuoka SoftBank HAWKS Corp.

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 + gain and loss on investments at Delta Fund − operating
expenses
Adjusted EBITDA = segment income (loss) + depreciation and amortization ± unrealized gain and loss on valuation of investments
For historical principal operational data of each segment, their calculation methods, and definitions of terms, see the Data Sheeton the Company’s website at www.softbank.jp/en/corp/irinfo/presentations/.

8SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2018(a) SoftBank Segment
1. Steady customer base expansion: smartphone subscribers increased 580,000, and SoftBank Hikari subscribers increased 280,000 from the previous fiscal year-end
2. Segment income increased 0.7% yoy, to ¥221.8 billion, despite the negative impact of adopting the newstandards
3. Adjusted Free cash flow increased 122.7% yoy, to ¥154.0 billion(Millions of yen)Three months ended June 30
2017
2018
PreviousNew
standards
standards

Three months ended
June 30, 2018
ChangeChange %Impact of adopting new
standards

Net sales

841,870

880,460

38,590

4.6%(6,861)

Segment income

220,342

221,795

1,453

0.7%

(5,613)

Depreciation and amortization

113,196

112,223(973)(0.9%)-

Adjusted EBITDA

333,538

334,018480

0.1%(5,613)

Capital expenditures(acceptance basis)54,01573,06919,05435.3%-

67,111

137,698

70,587105.2%-

69,149154,001

84,852

122.7%-

Free cash flow
*2

Adjusted free cash flow

Notes:
1. The new standards have been adopted since the first quarter. Figures for the same period of the previous fiscal year, to which the
new standards are not applied, are presented under the “previous standards."
2. Proceeds from borrowings through the securitization of handset installment sales receivables are added to free cash flow, and repayments of those borrowings are deducted from free cash flow. Due to the introduction of 48 monthly installment sales forhandsets, installment sales receivables (working capital) have increased. SoftBank Corp. is aiming to achieve stable cash flow
generation through the securitization of said installment sales receivables.

OVERVIEW
As Japan’s telecommunications market approaches maturity, SoftBank Corp. aims to strengthen the foundation for medium- to long-term earnings growth and generate stable free cash flow. Specifically, the company is working to increase
the number of smartphone and broadband subscribers, and use the operational assets of telecommunications services tofoster and expand new businesses under the Beyond Carrier Strategy.
Currently, in line with the Company’s unique organizational strategy, Cluster of No. 1 Strategy, SoftBank Corp. ispreparing for listing on the Tokyo Stock Exchange, and has made a preliminary application in July 2018. Through thisaction, SoftBank Corp. expects to be able to pursue its growth strategy with greater management autonomy and agility.

Main Recent Strategic Initiatives
 Respond to customers’ various needs through three brands: SoftBank, Y!mobile, and LINE MOBILE4
 Differentiate from other carriers through collaboration with Yahoo Japan Corporation- Offering point and free use of member benefits to subscribers- Started the Tender Offer in July 2018 to strengthen the collaboration and promote further growth

4

SoftBank Corp. began offering the brand in accordance with consolidation of LINE MOBILE Corporation on April 2, 2018.

9

SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2018

 Promote the Beyond Carrier Strategy- Collaborated with investees of SoftBank Vision Fund, such as WeWork and One97 Communications Limited(PayTM), to help develop their businesses in Japanese market

FINANCIAL RESULTS
Since the first quarter, net sales are disclosed in three categories: Consumer, Enterprise, and Distribution.
Category Details
Consumer:

Telecom services (mobile, broadband), products, etc., for retail customers

Enterprise:

Mobile communications services and products, fixed-line communications services and products, solutions, etc., for enterprise customers

Distribution:

Business of SoftBank Commerce & Service Corp.

Sales Breakdown(Millions of yen)

Telecom service revenue

Three months ended June 30
2017
2018
PreviousNew
standards
standards
612,463
634,930
487,817479,278

MobileBroadband
Product and other sales

406,31172,967133,185

ConsumerEnterprise
MobileFixed-line telecommunications
Solutions
Distribution
Others145,70265,572
52,77927,351
70,84812,857400,007
87,810147,113147,106
64,19952,23830,66982,736
15,688

Total net sales

841,870

880,460

ChangeChange %22,467
8,539

3.7%
1.8%

(6,304)
14,843
13,9281,404(1,373)(541)
3,318
11,8882,831(1.6%)
20.3%
10.5%
1.0%
(2.1%)(1.0%)
12.1%
16.8%
22.0%

38,5904.6%

Note: The new standards have been adopted since the first quarter. Figures for the same period of the previous fiscal year, to which
the new standards are not applied, are presented under the “previous standards."

Net sales increased ¥38,590 million (4.6%) year on year, to ¥880,460 million. Of this, consumer revenue increased¥22,467 million (3.7%), and distribution revenue increased ¥11,888 million (16.8%), respectively.
The increase in consumer revenue is attributable to an increase in revenues of product and other sales stemming froman increase in the average shipping price of smartphones, as well as to an increase in telecom service revenue resulting
from an increase in broadband revenue. The increase in distribution revenue is mainly due to strong sales of softwareand PCs for enterprise customers.

Segment income increased ¥1,453 million (0.7%) year on year, to ¥221,795 million. While operating expenses (costof sales and selling, general and administrative expenses) increased ¥37,137 million (6.0%) year on year, mainly reflecting an increase in the cost of products due to a higher average purchase price of smartphones, the increase in total

10

SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2018

net sales exceeded the rise in operating expenses. Adjusted EBITDA increased ¥480 million (0.1%) year on year, to¥334,018 million.

The adoption of the new standards had negative impacts of ¥6,861 million on net sales, and ¥5,613 million on bothsegment income and adjusted EBITDA.

Capital expenditures, on basis of acceptance, increased ¥19,054 million (35.3%) year on year, to ¥73,069 million, due
to initiatives to expand service areas and improve the quality of LTE services.
Adjusted free cash flow increased ¥84,852 million (122.7%) year on year, to ¥154,001 million. Working capitaldecreased due to a decrease in the inventory of mobile handsets.
For the SoftBank segment’s non-audited information on the results of the previous fiscal year that the new standards applied
to, see the Data Sheet published on the Company’s website at: http://www.softbank.jp/en/corp/irinfo/presentations/

OPERATIONS
MobileSubscribers (Main Subscribers5)(Thousands)

Cumulative subscribers

June 30, 2018

Change from March 31, 201833,609434

Cumulative subscribers increased from the previous fiscal year-end due to smartphone net additions of 576,000. Net
additions of smartphones were attributable to the steady growth in the number of Y!mobile and SoftBank subscribers, aswell as to the addition of LINE MOBILE smartphone subscribers in accordance with consolidation of LINE MOBILE
Corporation in April 2018.
Cumulative subscribers included 325,000 subscribers (an increase of 60,000 from the previous fiscal year-end) toWireless Home Phone, a new home-phone voice calling service using the mobile network, which was launched in July
2017.

Home Bundle Discount Hikari Set Applications(Thousands)

5

June 30, 2018

Change from March 31, 2018

Mobile8,503

355

Broadband

4,045

158

The number of main subscribers includes subscribers to the Wireless Home Phone service. Number of units sold, ARPU, and churn rate are calculated
and presented excluding this service.

11SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2018

Number of Units Sold (Main Subscribers)(Thousands)

Three months ended
June 30, 2018

YoY Change

Number of units sold

2,487

89

New subscriptions

1,103

(18)

Device upgrades

1,384

107

The number of device upgrades increased year on year, mainly due to a higher number of users switching contracts
between Y!mobile and SoftBank smartphones.

ARPU6 (Main Subscribers)

ARPU

Three months ended
June 30, 2018

YoY Change

4,320

¥(50)

Note: The figure reflects the comparison after adopting IFRS 15 to certain elements of ARPU for both the first quarter and thesame period of the previous fiscal year.

ARPU declined year on year, mainly due to the dilutive impact of an increased proportion of Y!mobile and LINE MOBILE smartphones, which have a lower service charge. The impact of telecommunications service discounts on ARPU
has lessened due to reductions in discount amounts in ARPU related to the Home Bundle Discount Hikari Set and theintroduction of a 48 monthly installment billing program.

Churn Rate (Main Subscribers)
Three months ended
June 30, 2018

YoY Change

Phone churn rate

0.80%

0.01 pp deterioration

Churn rate

1.03%

0.10 pp improvement

The churn rate improved, mainly due to the improved churn rates in mobile data communications devices.

Broadband
Subscribers(Thousands)

June 30, 2018

Change fromMarch 31, 2018

Cumulative subscribers

7,219

179

SoftBank Hikari

5,257

283

The number of SoftBank Hikari subscribers increased, due to the steady sales bundled with smartphones to which theHome Bundle Discount Hikari Set applied.

6

Reflects the impact of adopting IFRS 15 on re-allocation of revenue (e.g. allocation between communication service and product revenues as well as
mobile and broadband revenues)

12SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2018(b) Sprint Segment
1. Net sales were flat yoy on a U.S. dollar basis: telecom service revenue returned to sequential growth forthe first time in nearly four years, excluding the impact of adopting the new standards
2. Postpaid phone net additions for the 12th consecutive quarter
3. Steady increase in adjusted EBITDA(Millions of yen)Three months ended June 30
2017
2018
PreviousNew
standards standards

Three months ended
June 30, 2018
ChangeChange %Impact of adopting new
standards

Net sales

910,423

883,242(27,181)(3.0%)

13,191

Segment income

131,987

98,108(33,879)(25.7%)

20,902

Depreciation and amortization

230,832

253,535

22,7039.8%-

7(40,966)

8,523

49,489--Adjusted EBITDA

321,853

360,166

38,31311.9%

20,902

8,157

8,125

(32)

(0.4%)

122

7,235
261
1,183
2,068
(367)

7,092
(131)
902
2,332
78

(143)
(392)
(281)
264
445

(2.0%)(23.8%)
12.8%
-

(70)
192
-

2,884

3,312

428

14.8%

192

Other adjustments

U.S. dollar-based results (IFRSs)
Net sales
Cost of sales and selling, general andadministrative expenses
Other operating income (loss)
Segment income
Depreciation and amortization
Other adjustments7
Adjusted EBITDA
Reference: Disclosed by Sprint (US GAAP)
Network capital expenditures (cash basis)
Adjusted free cash flow

(Millions of U.S. dollars)(Millions of U.S. dollars)

1,151

1,132

(19)

(1.7%)

-

368

8

(360)

(97.8%)-

Note: The new standards have been adopted since the first quarter. Figures for the same period of the previous fiscal year, to which
the new standards are not applied, are presented under the “previous standards."

OVERVIEW
Sprint continues to aim to expand its net sales by increasing the number of postpaid and prepaid phone subscribers andstabilizing its ARPU. To achieve this goal, Sprint has continued its effort to further improve network quality and increasecustomer value by leveraging its ample spectrum holdings. In the fiscal year, Sprint expects to further increase network
cash capital expenditure to improve its network quality. At the same time, Sprint continues to aim to enhance its profitability by further improving operational efficiency.
Merger of Sprint and T-Mobile8
On April 29, 2018, Sprint and T-Mobile entered into a definitive agreement to merge in an all-stock 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 no longer be a subsidiary of theCompany.
7

Primary components include gain and loss from non-recurring factors, such as gain from spectrum license exchanges 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 andadministrative expenses.
8
The Transaction is subject to Sprint and T-Mobile stockholder approvals, regulatory approvals, and other customary closing conditions. It is expected
to close no later than the first half of 2019.

13

SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2018

FINANCIAL RESULTS
Results in U.S. dollars
Net sales decreased $32 million (0.4%) year on year, to $8,125 million.
Telecom service revenue fell year on year due to the spread of promotional price plans for new customers and thenegative impact of adopting the new standards. Excluding this negative impact, telecom service revenue achieved sequential quarterly growth for the first time in around four years due to ARPU bottoming out and expansion of thecustomer base.
Equipment revenue increased year on year as a result of the positive impact from the adoption of the new standards.
Excluding this impact, equipment revenue was approximately unchanged as an increase in equipment rental revenue
was offset by a decrease in equipment sales volume.
The adoption of the new standards had a $122 million positive impact on overall net sales.
Segment income decreased $281 million (23.8%) year on year, to $902 million. Cost of sales and selling, generaland administrative expenses decreased $143 million (2.0%) year on year, to $7,092 million. Although depreciation
expenses increased due to a rise in leased device assets, selling, general and administrative expenses decreased due tosuch factors as a decrease in cost of equipment and capitalization of costs to obtain contracts following the adoption of
the new standards. On the other hand, other operating income and loss deteriorated $392 million year on year due to theabsence of one-time gains recognized in the same period of the previous fiscal year, such as gain on spectrum license
exchange. The adoption of the new standards had a $192 million positive impact on segment income.
Adjusted EBITDA increased $428 million (14.8 %) year on year, to $3,312 million, of which $192 million reflected
the positive impact from the adoption of the new standards.
Adjusted free cash flow decreased $360 million (97.8%) year on year, to $8 million (as disclosed by Sprint, US
GAAP). The decrease reflected an increase in expenditures for the acquisition of rental devices and lower net proceedsfrom the securitization of equipment installment receivables and telecom service receivables.
Results in yen
In yen terms, reflecting year-on-year appreciation of the yen against the U.S. dollar, net sales decreased ¥27,181 (3.0%)
year on year to ¥883,242 million, and segment income decreased ¥33,879 million (25.7 %) to ¥98,108 million. Adjusted
EBITDA increased ¥38,313 million (11.9%) to ¥360,166 million.

14

SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2018

OPERATIONS
Cumulative Subscribers9(Thousands)

June 30, 2018

Change fromMarch 31, 201832,18768

26,84734

Prepaid

9,033

44

Wholesale and affiliate

13,347

(170)

Total

54,567(58)

Postpaid
Postpaid phone

Net Additions10 (Excluding Special Factors)(Thousands)

Three months ended
June 30, 2018

YoY Change

123

162

87

(1)

3

(32)

Wholesale and affiliate

(69)

(134)

Total

57

(4)

Postpaid
Postpaid phone
Prepaid

Postpaid phone subscriber net additions were flat year on year. Further, postpaid phone net additions included the migration of 71,000 subscribers from the prepaid subscriber base.
Churn Rate (Postpaid)
Three months ended
June 30, 2018

YoY Change

Postpaid phone churn rate

1.55%

0.05 pp deterioration

Postpaid churn rate

1.63%

0.02 pp improvement

Three months ended
June 30, 2018

YoY Change

Postpaid phone ARPU

$49.57$(4.35)

Postpaid ARPU

$43.55$(3.75)

ARPU (Postpaid)

ARPU decreased year on year due to the spread of low-rate plans.
Sequentially, postpaid ARPU increased as a result of more customers rolling off promotional pricing, excluding the$1.02 negative impact of the adoption of the new standards.
For more information on Sprint’s US GAAP-based financial results and business operations, please refer to the investor
relations section of its website at: investors.sprint.com/.

9

From the three-month period ended in March 2018, as a result of the introduction of a non-Sprint 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.
10
Net additions exclude changes in the subscriber base due to 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.

15

SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2018(c) Yahoo Japan Segment(Millions of yen)Three months ended June 30
2017
2018

ChangeChange %Net sales

209,383

226,136

16,7538.0%

Segment income

50,90438,750(12,154)(23.9%)

Depreciation and amortization

9,647

12,441

2,794

29.0%

Other adjustments(4,929)

-

4,929

-

Adjusted EBITDA

55,622

51,191(4,431)(8.0%)

More information about Yahoo Japan Corporation’s financial results and business operations is available on the investor
relations section of its website at: about.yahoo.co.jp/ir/en/.

(d) Arm Segment
1. Establishment of joint venture for business in China
 Recorded ¥161.3 billion of gain relating to loss of control following the China business becoming an associate from a subsidiary Net sales decreased 11.7% yoy: transition of contracts resulted in a delay in signing new contracts
2. Continued reinforcement of R&D capability
 In regions other than China, the number of employees increased steadily (increased 162 people (3%) fromthe previous fiscal year-end)(Millions of yen)Three months ended June 30
2018
2017

ChangeChange %Net sales

47,037

41,534(5,503)(11.7%)

Segment income(6,935)

145,192

152,127-

Depreciation and amortization
Gain relating to loss of control
over subsidiaries

14,883

18,537

3,654

24.6%

-

(161,347)(161,347)-

Adjusted EBITDA

7,948

2,382

(5,566)(70.0%)

Note: Depreciation and amortization includes amortization expenses of ¥13,578 million for the first quarter and ¥13,342 million
for the same period of the previous fiscal year. These expenses are related to intangible assets recognized in the purchaseprice allocation at the time of the acquisition of Arm.

OVERVIEW
Arm’s operations are primarily the licensing of semiconductor intellectual property (IP), including the designs of energyefficient microprocessors and associated technologies. Since becoming part of the Company, Arm has been accelerating
investment in research and development by hiring more engineers. With the expansion of its engineering capability,
Arm intends 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 Internetof Things (IoT). In May 2018, Arm announced a new suite of technology suitable for high-performance mobile devices
from laptops to smartphones. This new technology will provide twice the performance when running applications on an

16SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2018Arm-based PC, 30% more efficiency when running high-end games while also accelerating machine-learning functionality, and brings ultra-high definition (UHD) 8K video playback to mobile devices. Arm has already started licensing
this technology to leading semiconductor companies and expects it to start appearing in chips in 2019.
Net sales of the segment comprise of (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 decreased ¥5,503 million (11.7%) year on year, to ¥41,534 million. The novation process of existing contracts
in China from Arm to Arm Technology (China) Co., Ltd. (“Arm China”, see “Establishment of Joint Venture for China
Business” below), which followed the establishment of a joint venture for the China business, resulted in a delay insigning new contracts. Consequently, on a U.S. dollar basis, technology licensing revenue decreased year on year. Contracts that were not signed in the first quarter, for said reason, are expected to be concluded later in the fiscal year. As it
takes several years to develop a new system on chip design, the delay in signing a contract is not expected to have an
impact on the timing of chip shipments and the attendant technology royalties revenue.

Reference: 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)

Three months ended June 30
2018
2017

ChangeChange %Technology licensing

149

85

(64)

(43%)

Technology royalties

250

261

11

4%

Software and services

29

35

6

21%

Total net sales

428

381

(47)

(11%)

Segment income was ¥145,192 million (loss of ¥6,935 million in the same period of the previous fiscal year). Thiswas mainly attributable to the recognition of gain relating to the loss of control over subsidiaries of ¥161,347 million asother operating income, as a result of Arm China becoming an associate accounted for using the equity method from a
subsidiary.
Meanwhile, Arm continued to increase its R&D capability, which included hiring more R&D engineers and support
staff. As a result, operating expenses (cost of sales and selling, general and administrative expenses) increased ¥3,718
million year on year. Arm’s head count decreased by net 179 people from the previous fiscal year-end, due to the exclusion of 341 employees of Arm China from the head count upon June 26, 2018, the date on which the transaction toestablish the joint venture for China business was completed. However, in regions other than China, the number ofArm’s employees increased 162 people from the previous fiscal year-end.
Adjusted EBITDA decreased ¥5,566 million (70.0%) year on year, to ¥2,382 million.

17

SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2018

Establishment of Joint Venture for China Business

On June 26, 2018, Arm sold 51% of its equity interest in its wholly owned Chinese subsidiary, Arm China, for$775 million to entities representing certain institutional investors and certain of Arm’s ecosystem partners in orderto form 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 forusing the equity method. Accordingly, the Company recorded gain relating to loss of control over subsidiaries of¥161,347 million.
Arm will continue to receive a significant proportion of all license, royalty, software, and service revenues arising from Arm China’s licensing of Arm semiconductor products, and record them as net sales. Arm China’s laborcosts are no longer included after it became an associate. However, Arm’s business outside of China will continue
to utilize services provided by Arm China employees, for which Arm will pay as if Arm China was a subcontractor
and record the cost in operating expenses. The net impact on segment income in the medium term is expected tobe minor.

OPERATIONS
Licensing
Licenses signed
April 1 to June 30, 2018

Cumulative number of licenses signed
June 30, 2018

Classic (Arm7, Arm9, Arm11)
Cortex-A
Cortex-R
Cortex-M
Mali

3
1
11
1

499
337
95
493
169

Number of processor licenses signed

16

1,593

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

Arm signed 16 processor licenses during the first quarter, reflecting solid demand for Arm’s latest technology, althougha number of license agreements with Chinese companies were delayed due to the aforementioned impact of novation of
legacy contracts from Arm to Arm China. Of the customers signing new licenses, three were new customers purchasing
their very first Arm processor license. The customers who signed licenses with Arm in the first quarter intend to use
Arm technology in a very broad range of end markets, including augmented reality systems, surveillance cameras, embedded computers, and PCs.

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 March 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 the chips areshipped, based on estimates.

18

SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2018

Jan 1 toMar 31

Apr 1 toJun 30Jul 1 toSep 302017
Oct 1 toDec 31

2018
Jan 1 toMar 31

4.7 billion

5.1 billion

5.7 billion

5.8 billion

5.5 billion

28%

25%

17%

14%

17%

Classic (Arm7, Arm9, Arm11)

17%

18%

17%

16%

14%

Cortex-A

22%

20%

17%

19%

20%

Royalty units as reported byArm’s licensees
Growth rate (yoy)Breakdown by processor family

Cortex-R

8%

9%

7%

7%

8%

Cortex-M

53%

53%

59%

58%

58%

Arm’s licensees reported shipments of 5.5 billion Arm-based chips for the three-month period ended March 31, 2018.
This reflects normal seasonality in terms of growth versus the previous quarter, down 3%, and strong growth of 17%
year on year, reflecting strong demand for Arm-based chips, especially in embedded markets such as microcontrollers
and IoT.
More information about Arm, its business, and its technology can be found on the investor relations section of Arm’s website
at: www.arm.com/company/investors.

19

SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2018(e) SoftBank Vision Fund and Delta Fund Segment
1. Segment income of ¥ 239.9 billion
 Valuation gain of ¥244.9 billion was recorded at SoftBank Vision Fund, due to agreed-to-be-sold Flipkart
shares and rise in fair values of WeWork and other investment holdings
2. Investments totaling $27.1 billion to date at SoftBank Vision Fund amounted to fair value of $32.5 billion11
3. Total committed capital of $ 97.7 billion at SoftBank Vision Fund and Delta FundOVERVIEWSoftBank Vision Fund began its operation in 2017. The Fund aims to conduct large-scale, long-term investment incompanies and platform businesses that have the potential to bring about next-generation innovation. The Fund is managed by SB Investment Advisers (UK) Limited (“SBIA”), the Company’s wholly owned U.K. subsidiary 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.

Outline of Funds in the Segment
As of June 30, 2018
SoftBank Vision Fund

Delta Fund

Major limited partnership

SoftBank Vision Fund L.P.

SB Delta Fund (Jersey) L.P.

Total committed capital

91.7 *1

6.0 *1(Billions of U.S. dollar)

SoftBank Group Corp.: 28.1 *2Third-party investors: 63.6 *1
SoftBank Group Corp.
Public Investment Fund
Mubadala Investment Company
Apple
Foxconn Technology Group
Qualcomm Incorporated
Sharp Corporation
SVF GP (Jersey) Limited(The Company’s wholly owned overseas
subsidiary)
SBIA

SoftBank Group Corp.: 4.4
Third-party investors: 1.6 *1
SoftBank Group Corp.
Mubadala Investment Company

Advisory company

The Company’s wholly owned subsidiaries (in Japan and the U.S.)

The Company’s wholly owned subsidiaries (in Japan and the U.S.)

Investment period

Five years from the final closing*3(in principle)
Twelve years from the final closing*3(in principle)

Five years from the final closing(in principle)
Twelve years from the final closing(in principle)

Limited partners

General partners

Management company

Minimum Fund life

SB Delta Fund GP (Jersey) Limited(The Company’s wholly owned overseas
subsidiary)
SBIA

Notes:
1. A portion of the capital committed by Mubadala Investment Company in both SoftBank Vision Fund and Delta Fund has beencommitted in consideration of the total capital committed for both separate Funds: hence, the total committed capital and remaining
committed capital for each separate Fund will change according to the status of contribution by Mubadala Investment Company
in each Fund.
2. The amount includes approximately $8.2 billion of an obligation to be satisfied by using Arm Limited shares.
3. The final closing of SoftBank Vision Fund has not been completed as of the date of the publication of this report.

11

Includes the amount of investments made by holding entities that are jointly held by SoftBank Vision Fund and the Company’s subsidiary20

SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2018

FINANCIAL RESULTS(Millions of yen)Three month ended June 30
2017
2018

ChangeChange %Gain and loss on investments at SoftBank Vision Fund
Unrealized gain and loss on valuation of investments
Interest and dividend income from investments
Gain and loss on investments at Delta Fund
Unrealized gain and loss on valuation of investments
Interest and dividend income from investments
Operating expenses

106,871
106,871(1,642)

246,311244,902
1,409
900
900
(7,267)

139,440
138,031
1,409
900
900
(5,625)130.5%
129.2%(342.6%)

Segment income
Depreciation and amortization
Unrealized loss (gain) on valuation of investments

105,229(106,871)

239,9446(245,802)

134,715
6(138,931)

128.0%(130.0%)(1,642)(5,852)(4,210)(256.4%)

Adjusted EBITDA

Note: The segment’s results are calculated as follows:
Segment income = gain and loss on investments at SoftBank Vision Fund + gain and loss on investments at Delta Fund - operating
expenses
Adjusted EBITDA = segment income (loss) + depreciation and amortization ± unrealized gain and loss on valuation of investments

Segment income was ¥239,944 million (compared with income of ¥105,229 million in the same period of the previous
fiscal year), out of which gain on investments at SoftBank Vision Fund was ¥246,311 million. The gain resulted fromthe recording of unrealized gain on valuation of investments of ¥244,902 million, mainly reflecting the valuation gainof ¥164,253 million for the higher fair value of Flipkart shares. The fair values of WeWork and other investments also
increased.
The increase in the fair value of Flipkart was recognized to reflect the expected sales value of approximately $4 billion(subject to certain customary adjustments) pursuant to the agreement SoftBank Vision Fund entered into on May 9, 2018
to sell all of its shares (representing 19.95% of Flipkart shares on a fully diluted basis) to WAL-MART INTERNATIONAL HOLDINGS, INC. (“Walmart”). This has been taken into the fair value measurement at the end of the firstquarter. As capital gains on investments in entities that operate business in India are subject to tax in India, the Company
recognized the tax effect on the unrealized valuation gain for Flipkart and recorded deferred tax of ¥71,746 million in
the condensed interim consolidated statement of income. The Company estimates that the sale of Flipkart shares will
occur within 24 months of the inception of the investment and has calculated the deferred tax at 43.68%, being theIndian short-term capital gains tax rate expected to apply on the sale of Flipkart shares.
Gain on investments at Delta Fund was ¥900 million, reflecting the higher fair value of its investment.

Adjusted EBITDA, which is calculated by deducting depreciation and amortization and unrealized gain and loss on
valuation of investments from segment income, was negative ¥5,852 million.

21

SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2018

Capital Deployment
As of June 30, 2018
(Billions of U.S. dollars)

Total

The Company

Third-party investors

Committed capital
SoftBank Vision Fund
Delta Fund

91.7 *1
6.0 *1

28.1 *2
4.4

63.6 *1
1.6 *1

Contributions from limited partners*3
SoftBank Vision Fund
Delta Fund

23.5
5.1

7.1 *2
3.7 *416.4
1.4

Remaining committed capital
SoftBank Vision Fund
Delta Fund

68.2
0.9 *5

21.0
0.7

47.2
0.2 *5

Notes:
1. A portion of the capital committed by Mubadala Investment Company in both SoftBank Vision Fund and Delta Fund has beencommitted in consideration of the total capital committed for both separate Funds: hence, the total committed capital and remaining
committed capital for each separate Fund will change according to the status of contribution by Mubadala Investment Company
in each Fund.
2. The amount includes approximately $8.2 billion of obligation to be satisfied by using 24.99% of Arm Limited shares. As a resultof contributions made through the end of the first quarter, SoftBank Vision Fund held 21.96% of Arm Limited shares at the endof the first quarter.
3. The amount excludes the amount that was repaid to limited partners due to investment plan changes and other reasons after thecontribution had been made.
4. The amount includes the value of the investment securities in DiDi acquired by the Company and then transferred to Delta Fund.
The value of this transfer was offset against the amount of the Company's capital obligation to Delta Fund.
5. 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.

Investment Status
As of the end of the first quarter, the total acquisition cost and fair value of investments of SoftBank Vision Fund was$27.1 billion and $32.5 billion, respectively. The total acquisition cost and the fair value of investment of Delta Fund
was $5.0 billion each. The following is the list of the investees of the two Funds, as of the end of the first quarter.

Investees of SoftBank Vision Fund
Name (in alphabetical order)

Business

Arm Limited

Semiconductor technology designer

Auto1 Group GmbH

Used car wholesaler in Europe

Brain Corporation

AI-based autonomous driving system developer

Cohesity, Inc.

Hyper-Converged data platform

Fanatics Holdings, Inc.

Online retailer of licensed sports merchandise

Flipkart Private Limited (Flipkart)

e-commerce

Full Truck Alliance Co., Ltd.

Cargo truck matching platform

Guardant Health, Inc. (and its one affiliate)

Cancer diagnosis through genomic analysis

HealthKonnect Medical and Health Technology Management
Managed care platform
Company Limited (Ping An Medical and Healthcare)22SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2018

Name (in alphabetical order)

Business

Improbable Worlds Limited

VR/AR development tools

Katerra Inc.

End-to-end design & architecture technology platform

MapBox Inc.

Geographical information platform

Nauto, Inc.

AI-based safe-driving support services

NVIDIA Corporation

GPU developer

One97 Communications Limited (PayTM)

Online payment services

OneConnect Financial Technology Co., Ltd.

FinTech solutions

Oravel Stays Private Limited (OYO Rooms)

Hotel booking site

OSIsoft LLC

Industrial IoT solutions

Ping An Healthcare and Technology Company Limited

Online healthcare portal

Plenty United Inc.

Indoor farm plant

Roivant Sciences Ltd.

Biopharmaceutical drug developer

Slack Technologies, Inc.

Business chat tool

Urban Compass, Inc. (Compass)

Real estate big data platform

Vir Biotechnology, Inc.

Pharmaceutical drug development using AI

Wag Labs, Inc

On-demand dog walking & dog care app

WeWork Companies Inc. (and its three affiliates)

Co-working space services

Zhongan Online P&C Insurance Co., Ltd

Online insurance

Two other investments
Note: SoftBank Vision Fund made some investments through investment holding entities that are subsidiaries, but not wholly owned
subsidiaries, of SoftBank Vision Fund. Regardless of the ownership percentage of SoftBank Vision Fund, all investments made throughthe investment holding entities are calculated as investments made by SoftBank Vision Fund. Some of the subsidiaries of SoftBank
Vision Fund have investors other than SoftBank Vision Fund. Of the total fair values of investments by SoftBank Vision Fund at theend of the first quarter, $1.4 billion belongs to those investors.

Investee of Delta Fund
Name

Business

Xiaoju Kuaizhi Inc. (DiDi)

Ridesharing services

Investments Transferred from the Company to SoftBank Vision Fund or Delta Fund
Some investments of SoftBank Vision Fund or Delta Fund are made by the Company transferring its investments to thetwo Funds. Such investment transfer is called “Bridge Investments.” Bridge Investments are executed only after thenecessary approvals are given by the investment committee of each Fund, and at the prices based on the fair value at thetime of the approval.
As of the end of the first quarter, the total acquisition cost and the fair value of the investments of the SoftBank Vision
Fund, including those Bridge Investments whose transfer from the Company has been agreed upon, was $27.2 billion
and $32.6 billion, respectively. There are no applicable investments for Delta Fund.

23

SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2018(f) Brightstar Segment(Millions of yen)Three months ended June 30
2017
2018
Net sales
Segment income
Depreciation and amortization
Adjusted EBITDA

ChangeChange %220,128

253,828

33,70015.3%(1,328)(5,345)(4,017)

-

1,486

1,179

(307)

(20.7%)

158(4,166)(4,324)-(2) Overview of Financial Position
1. Status of investments
 SoftBank Vision Fund
- Reclassified Flipkart shares with fair value of ¥439.8 billion as assets classified as held for sale, following
the agreement on the sale to Walmart
 Other- The balance of investment securities increased ¥349.9 billion, to ¥3,010 billion- Invested in GM Cruise12, and the fair values of Uber12 and Grab12 shares increased
2. Refinancing of corporate bonds executed by SoftBank Group Corp.
 Refinanced foreign currency-denominated senior notes for greater financial flexibility, with new issuance totaling ¥272.7 billion and early redemption totaling ¥357.6 billion
 Issued domestic straight corporate bonds of ¥450 billion and redeemed ¥400 billion at maturity
Adoption of IFRS 9 and IFRS 15
In accordance with the adoption of IFRS 9 and IFRS 15 from the first quarter, the cumulative impact of retrospective
adjustments was recognized as adjustments to the opening balance of retained earnings and accumulated other comprehensive income as of April 1, 2018. See “(3) Effect of adopting new standards and interpretations” under “3. Significant
Accounting Policies” in “(6) Notes to Condensed Interim Consolidated Financial Statements” in “3. Condensed Interim
Consolidated Financial Statements and Primary Notes” for details.
(Millions of yen)March 31, 2018

June 30, 2018

ChangeChange %Total assets

31,180,466

32,268,364

1,087,898

3.5%

Total liabilities

24,907,444

25,447,190

539,746

2.2%

Total equity

6,273,022

6,821,174

548,152

8.7%

Reference: Exchange rate at the end of the first quarter used for translations

12

USD / JPY

¥106.24¥110.54

¥4.30

4.0%

GBP / JPY

¥148.84¥144.59(¥4.25)(2.9%)

These investments are held by a wholly owned subsidiary of the Company.

24SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2018(a) Current Assets(Millions of yen)

Cash and cash equivalents
Trade and other receivables
Assets classified as held for sale from
SoftBank Vision Fund and Delta Fund
SoftBank Vison Fund
Other financial assets
Inventories
Other current assets
Total current assets

March 31, 2018

June 30, 2018

Change3,334,650
2,314,353

2,728,279
2,235,698(606,371)(78,655)-

439,765439,765

519,444362,041
344,374

439,765
788,540
331,822356,869

439,765
269,096(30,219)
12,495

6,874,862

6,880,973

6,111

Primary components of the change
Components and balancePrimary changes from the previous fiscal year-end and main reasons

Cash and cash equivalents¥2,728,279 million

See “(3) Cash Flow Overview” for details.

Assets classified as held forsale in SoftBank Vision Fundand Delta Fund
¥439,765 million

SoftBank Vision Fund: ¥439,765 million increase
Flipkart shares were transferred from investments from SoftBank Vision Fund andDelta Fund accounted for using FVTPL, following the agreement on the sale toWalmart.

Other financial assets¥788,540 million¥269,096 million increase
Sprint acquired commercial paper held for short-term investment.

(b) Non-current Assets(Millions of yen)March 31, 2018

June 30, 2018

Change3,856,847
4,302,553

3,975,908
4,251,373

119,061(51,180)

2,860,738

2,784,384(76,354)

6,784,550

6,931,446

146,896-306,888306,888

Investments accounted for using the equity method

2,328,617

2,432,989

104,372

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

2,827,784

2,932,353

104,569

SoftBank Vision Fund
Delta Fund
Investment securities
Other financial assets
Deferred tax assets
Other non-current assets

2,296,584
531,200
2,660,115
676,392
647,514221,232

2,378,738
553,615
3,010,041
720,032
620,733
205,628

82,154
22,415349,926
43,640(26,781)(15,604)

Total non-current assets

24,305,604

25,387,391

1,081,787

Property, plant and equipment
GoodwillArm
Intangible assets
Costs to obtain contracts

25SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2018

Primary components of the change
Components and balancePrimary changes from the previous fiscal year-end and main reasons

Property, plant and equipment¥3,975,908 million¥119,061 million increase
At Sprint, construction in progress increased due to growth in capital expenditures, and leased mobile devices for customers also increased.

Intangible assets¥6,931,446 million¥146,896 million increase
FCC licenses and others increased due to a weaker yen against the U.S. dollar.

Costs to obtain contracts¥306,888 million

Costs to obtain contracts at SoftBank Corp. and Sprint was newly recorded due tothe adoption of the new standards.

Investments accounted forusing the equity method¥2,432,989 million¥104,372 million increase
Arm China, which was a subsidiary of Arm, became an associate accounted forusing the equity method, whereby a consolidated carrying amount of ¥77,948 million was newly recorded. Alibaba’s consolidated carrying amount increased dueto the recording of income on equity method investment.

Investments from SoftBank
Vision Fund and Delta Fund
accounted for using FVTPL¥2,932,353 million

SoftBank Vision Fund: ¥82,154 million increase
New investments were made in Full Truck Alliance Co., Ltd. (“Full Truck Alliance”) and others. In addition, the fair values of WeWork and other investments increased. On the other hand, Flipkart shares were transferred to assets classified asheld for sale from SoftBank Vision Fund and Delta Fund, following the agreementon the sale to Walmart.
Delta Fund: ¥22,415 million increase
The increase was due to a weaker yen against the U.S. dollar.

Investment securities¥3,010,041 million¥349,926 million increase
At a wholly subsidiary of SoftBank Group Corp, new investments were made in
GM Cruise Holdings, LLC (“GM Cruise”), a developer of autonomous driving
technology, among others, and fair values of investments such as Uber and Grab
increased. The investments in Uber, Grab, and certain of these new investments
such as GM Cruise, may be offered to SoftBank Vision Fund in the future, subject
to applicable consent and regulatory and other approvals.

26

SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2018(c) Current Liabilities(Millions of yen)Interest-bearing debt

March 31, 2018

June 30, 2018

Change3,217,405

4,142,996

925,591

1,485,851

1,390,188(95,663)

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

782,870
214,964
299,354
93,000790,139

11,595217(100,475)(7,000)(12,916)

Current portion of long-term borrowings
Current portion of lease obligations
OthersSprint393,916
393,282
15,857364,245

380,321397,388
12,430535,717(13,595)
4,106(3,427)
171,472

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

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

137,404
388,638
9,675
544,168(27,062)
198,242292

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

83,952
313,143
167,159

544,168
882,784(83,952)
231,025
715,625

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

167,159
684,091

719,037
163,747
701,638

719,037(3,412)
17,547

Third-party interests in SoftBank Vision Fund and Delta Fund

40,713-(40,713)

SoftBank Vision Fund
Delta Fund
Trade and other payables
Derivative financial liabilities
Other financial liabilities
Income taxes payables
Provisions
Other current liabilities

39,193
1,520
1,816,010
96,241
1,646
147,979
65,709658,961

1,667,695
853,527
5,416
92,042
61,312
678,425(39,193)(1,520)(148,315)
757,286
3,770(55,937)(4,397)
19,464

Total current liabilities

6,728,755

8,203,051

1,474,296

SoftBank Group Corp.

27

147,073

SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2018

Primary components of the change
Components and balancePrimary changes from the previous fiscal year-end and main reasonsInterest-bearing debt
¥4,142,996 million
SoftBank Group Corp.
¥1,390,188 million¥95,663 million decrease
Current portion of corporate bonds decreased ¥100,475 million due to the redemption of domestic straight corporate bonds, offsetting the corporate bonds that mature
within a year being transferred from non-current liabilities.

Sprint¥535,717 million¥171,472 million increase
Current portion of corporate bonds increased ¥198,242 million, as a result of thecorporate bonds that mature within a year being transferred from non-current liabilities.

SoftBank Vision Fund
¥544,168 million¥147,073 million increase
SoftBank Vision Fund made borrowings by way of crystallizing its investment securities.

Others¥882,784 million¥715,625 million increase
As the settlement date of a variable prepaid forward contract for Alibaba shares being within a year, the related financial liabilities were transferred from non-current
liabilities.

Trade and other payables¥1,667,695 million¥148,315 million decrease
While accrued payment for facilities and sales commissions to dealers were temporarily high at SoftBank Corp. at the previous fiscal year-end, it decreased after payment.

Derivative financial liabilities¥853,527 million¥757,286 million increase
As the settlement date of a variable prepaid forward contract for Alibaba shares being within a year, the derivative liabilities related to the embedded collar transaction
were transferred from non-current liabilities.

28

SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2018(d) Non-current Liabilities(Millions of yen)March 31, 2018

June 30, 2018

Change13,824,783

13,205,962(618,821)

7,732,330

7,848,581

116,251

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

3,252,422
4,596,159
925,418

36,96379,28828,983Long-term borrowings
Lease obligations
OthersSprint217,514
670,862
8,059
3,979,705

247,476
672,434
5,508
3,950,942

29,962
1,572(2,551)(28,763)

Long-term borrowings
Corporate bonds
OthersSoftBank Vision Fund

1,346,576
2,612,178
20,951
101,3121,433,207
2,497,808
19,92770,824

86,631(114,370)(1,024)(30,488)

Long-term borrowings
Others101,312
1,115,001

70,824410,197(30,488)(704,804)

Financial liabilities relating to sale of shares by variable prepaid forward contract
OthersThird-party interests in SoftBank Vision Fund and Delta Fund

688,332
426,669
1,803,966

410,197
2,012,729(688,332)(16,472)
208,763

SoftBank Vision Fund
Delta Fund
Derivative financial liabilities
Other financial liabilities
Defined benefit liabilities
Provisions
Deferred tax liabilities
Other non-current liabilities

1,659,665
144,301
865,40262,372
100,486
132,139
1,085,626
303,915

1,861,813
150,916
125,221
68,954
102,795
134,739
1,340,181
253,558

202,148
6,615(740,181)
6,582
2,309
2,600
254,555(50,357)

Total non-current liabilities

18,178,689

17,244,139(934,550)

Interest-bearing debt
SoftBank Group Corp.

13

Long-term borrowings
Corporate bonds
SoftBank Corp.

13

13

This includes borrowings using Alibaba shares made by a wholly owned subsidiary of the Company. The borrowings are not guaranteed by SoftBank
Group Corp., hence non-recourse to the company.

29

SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2018

Primary components of the change
Components and balancePrimary changes from the previous fiscal year-end and main reasonsInterest-bearing debt
¥13,205,962 million
SoftBank Group Corp
¥7,848,581 million¥116,251 million increase
Corporate bonds increased ¥79,288 million. Domestic straight corporate bonds of¥450 billion and foreign currency-denominated senior notes totaling ¥272.7 billion
were issued. On the other hand, foreign currency-denominated senior notes totaling¥357.6 billion issued in 2013 were redeemed before maturity. In addition, certain
corporate bonds were transferred to current liabilities as they becoming due within
a year.

Sprint¥3,950,942 million¥28,763 million decrease
Corporate bonds decreased ¥114,370 million due to the transfer of certain corporate
bonds to current liabilities as they becoming due within a year. On the other hand,due to a weaker yen against the U.S. dollar, long-term borrowings increased ¥86,631
million.

Others¥410,197 million¥704,804 million decrease
As the settlement date of a variable prepaid forward contract for Alibaba shares being within a year, the related financial liabilities were transferred to current liabilities.

Third-party interests in SoftBank Vision Fund and Delta
Fund¥2,012,729 million

SoftBank Vision Fund: ¥202,148 million increase
Delta Fund: ¥6,615 million increase
See “7. Third-party interests in SoftBank Vision Fund and Delta Fund” under “(6)Notes to Condensed Interim Consolidated Financial Statements” in “3. Condensed
Interim Consolidated Financial Statements and Primary Notes” for details.

Derivative financial liabilities¥125,221 million¥740,181 million decrease
As the settlement date of a variable prepaid forward contract for Alibaba shares being within a year, the derivative liabilities relating to the embedded collar transaction
were transferred to current liabilities.

(e) Equity(Millions of yen)March 31, 2018

June 30, 2018

ChangeTotal equity attributable to owners of the parent

5,184,176

5,689,782

505,606

Non-controlling interests

1,088,846

1,131,392

42,546

Total equity

6,273,022

6,821,174

548,152

16.6%

17.6%

1.0 ppRatio of equity attributable to owners of the parent

30

SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2018

Equity attributable to owners of the parent(Millions of yen)March 31, 2018

June 30, 2018

ChangeCommon stock

238,772

238,772-

Capital surplus

256,768

263,944

7,176

Other equity instruments

496,876

496,876-

Retained earnings

3,940,259

4,530,979

590,720

Treasury stock(66,458)(66,462)(4)

Accumulated other comprehensive income

317,959

225,673(92,286)

Available-for-sale financial assets

63,700-(63,700)

Equity financial assets at FVTOCI-

10,132

10,132

Debt financial assets at FVTOCI

-

55

55

Cash flow hedges
Exchange rate differences on translating
foreign operations(55,286)(75,495)(20,209)309,545

290,981(18,564)

Total equity attributable to owners of the parent

5,184,176

5,689,782

505,606

Primary components of the change
Components and balancePrimary changes from the previous fiscal year-end and main reasons

Retained earnings¥4,530,979 million¥590,720 million increase
The cumulative impact of adopting the new standards of ¥300,615 million wasrecorded on April 1, 2018. Net income attributable to owners of the parent of¥313,687 million was also recorded.

Accumulated other comprehensive income¥225,673 million¥92,286 million decrease
The cumulative impact of adopting the new standards of ¥57,828 million wasreclassified as retained earnings on April 1, 2018.

(3) Overview of Cash Flows
1. Progress on investments at SoftBank Vision Fund
 Payments for acquisition of investments of ¥177.0 billion
 Distributed ¥153.5 billion as proceeds from partial monetization of investments, among others, to third-party
investors
2. Issuance and redemption of bonds by SoftBank Group Corp.
 Issued domestic straight corporate bonds of ¥450 billion and foreign currency-denominated senior notes totaling ¥272.7 billion
 Redemption of matured domestic straight corporate bonds of ¥400 billion, and early redemption of foreign
currency-denominated senior notes totaling ¥357.6 billion(Millions of yen)Three months ended June 30
2017
2018

ChangeCash flows from operating activities

195,954274,419

78,465

Cash flows from investing activities(1,068,352)(892,109)

176,243

Cash flows from financing activities(26,022)(48,508)(22,486)31

SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2018(a) Cash Flows from Operating Activities
Cash flows from operating activities increased ¥78,465 million year on year. Income taxes paid decreased ¥100,818
million year on year primarily due to the payment of income taxes for the sale of Supercell Oy shares in 2016, which
was made in the same period of the previous fiscal year.
(b) Cash Flows from Investing Activities
Primary components for the first quarter
Components

Primary details

Outlays for purchase of property, plant andequipment and intangible assets¥(333,374) million

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

Payments for acquisition of investments¥(267,903) million

A wholly owned subsidiary of the Company newly invested in GM
Cruise, among others. GM Cruise and certain of these new investments may be offered to SoftBank Vision Fund in the future, subject
to applicable consent and regulatory and other approvals.
In addition, Japan Net Bank Ltd. acquired securities held for investment.

Payments for acquisitions of investment by
SoftBank Vision Fund and Delta Fund¥(176,963) million

SoftBank Vision Fund made several new investments totaling¥176,963 million, such as Full Truck Alliance.

Increase from loss of control over subsidiaries¥56,826 million

The amount was obtained by deducting the cash and cash equivalents
held by Arm China on the date of loss of control from the proceeds
received to date related to the sale of equity interest in Arm China,
which became an associate accounted for using the equity method following the establishment of a joint venture for Arm's China business.

Payment for the acquisition of short-term
investment securities¥(140,640) million

Sprint acquired commercial paper held for short-term investment.

Payments into time deposits¥(244,107) million
Proceeds from withdrawal of time deposits¥199,305 million

These payment and proceeds are associated with short-term trading at
Sprint and Arm.

(c) Cash Flows from Financing Activities
Primary components for the first quarter
Component
Proceeds from interest-bearing debt
¥1,436,683 million
Proceeds from long-term borrowings¥588,956 million
SoftBank Vision Fund
¥196,967 million

Primary details

SoftBank Vision Fund crystallized some of its investment securities. The amount has been recorded as long-term borrowings in thecondensed interim consolidated statement of financial position.

32

SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2018

Component
OthersPrimary details· Sprint borrowed ¥148,926 million by using its telecommunications network equipment and leased devices.
· SoftBank Corp. borrowed ¥139,449 million through securitization of installment receivables.

Proceeds from issuance of bonds¥722,744 million

SoftBank Group Corp. issued ¥450 billion of domestic straight
corporate bonds and foreign currency-denominated senior notes
totaling ¥272.7 billion.

Proceeds from sale-leaseback of newly acquired equipment¥124,983 million

SoftBank Corp. conducted a sale-leaseback for the purchase of telecommunications network equipment through financing leases.

Repayment of interest-bearing debt¥(1,388,998) million
Repayment of long-term borrowings¥(499,775) million· Sprint repaid borrowings of ¥151,928 million.
· SoftBank Corp. repaid borrowings of ¥123,082 million madethrough the securitization of installment receivables.

Redemption of corporate bonds¥(757,640) million

SoftBank Group Corp. redeemed straight corporate bonds of ¥400
billion at maturity, in addition to early redemption of foreign currency-denominated senior notes issued in 2013 totaling ¥357.6 billion.

Repayment of lease obligations¥(125,106) million

SoftBank Corp. repaid its lease obligations for telecommunications network equipment.

Contribution to SoftBank Vision Fund andDelta Fund from third-party investors¥180,212 million· SoftBank Vision Fund received cash contributions of ¥179,449
million from third-party investors based on capital calls.
· Delta Fund received cash contributions of ¥763 million fromthird-party investors based on capital calls.

Distribution/repayment from SoftBank Vision
Fund and Delta Fund to third-party investors¥(161,259) million· SoftBank Vision Fund made both fixed and performance-based
distributions to third-party investors from the proceeds received
from monetizing the investment securities it possesses. The Fundalso made fixed distributions based on the aggregated amount ofinvestment in the first quarter. The total amount of fixed distribution was ¥34,835 million and performance-based distributionwas ¥118,684 million.
· Delta Fund made fixed distributions based on the aggregatedamount of investment in the first quarter.

(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.

33

SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2018

2. Notes to Summary Information
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 Condensed Interim Consolidated
Financial Statements” under “3. Condensed Interim Consolidated Financial Statements and Primary Notes.”

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

Definition

SoftBank Group Corp.

SoftBank Group Corp. (stand-alone basis)

The Company

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

Arm

Arm Limited

SoftBank Vision Fund

SoftBank Vision Fund L.P.
SoftBank Vision Fund (AIV M1) L.P.
SoftBank Vision Fund (AIV M2) L.P.
SoftBank Vision Fund (AIV S1) L.P.

Delta FundSB Delta Fund (Jersey) L.P.

Brightstar

Brightstar Global Group Inc.

Fortress

Fortress Investment Group LLC

Alibaba

Alibaba Group Holding Limited

34

SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2018

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

As ofMarch 31, 2018
AssetsCurrent assets
Cash and cash equivalents
Trade and other receivables
Assets classified as held for sale in
SoftBank Vision Fund and Delta Fund
Other financial assets
Inventories
Other current assets
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

35

As of
June 30, 2018

3,334,650
2,314,353

2,728,279
2,235,698-

439,765

519,444362,041
344,374
6,874,862

788,540
331,822356,869
6,880,973

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

3,975,908
4,251,373
6,931,446
306,888
2,432,989

2,827,784

2,932,353

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

3,010,041
720,032
620,733
205,628
25,387,391
32,268,364

SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2018

(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 ofJune 30, 2018

3,217,405
684,091

4,142,996
701,638

40,713-

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

1,667,695
853,527
5,416
92,042
61,312
678,425
8,203,051

13,824,783

13,205,962

1,803,966

2,012,729

Total liabilities

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

125,221
68,954
102,795
134,739
1,340,181
253,558
17,244,139
25,447,190

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
263,944496,876
4,530,979(66,462)
225,673
5,689,782
1,131,392
6,821,174
32,268,364

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

36SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2018

(2) Condensed Interim Consolidated Statement of Income and Condensed Interim Consolidated Statement ofComprehensive Income
Condensed Interim Consolidated Statement of Income(Millions of yen)Three-month period ended Three-month period ended
June 30, 2017
June 30, 2018
Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Gain relating to loss of control over subsidiaries
Other operating income (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 loss
Gain from financial instruments at FVTPL
Change in third-party interests in SoftBank Vision Fundand Delta Fund
Other non-operating loss
Income before income tax
Income taxes
Net income
Net income attributable to
Owners of the parent
Non-controlling interests

Earnings per share
Basic earnings per share (yen)Diluted earnings per share (yen)37

2,186,059(1,255,123)
930,936

2,272,783(1,316,660)
956,123(589,361)
32,469(627,985)
161,347(14,436)

374,044475,049

105,229

239,944479,273(120,870)
1,634(1,796)(257,059)
24,613714,993(148,467)
37,705
12,925(54,080)
94,542(43,589)(72,889)(4,638)77,568(47,028)
30,540(12,425)572,304(244,184)
328,120

5,521
25,01930,540313,687
14,433
328,1205.07
4.22

281.55280.14

SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2018

Condensed Interim Consolidated Statement of Comprehensive Income(Millions of yen)Three-month period ended
June 30, 2017

Three-month period ended
June 30, 2018

30,540328,120

-

748

-

748

24,322
18,13435(20,600)

153,947

17,021

6,626(13,796)203,029(17,340)

203,029
233,569(16,592)
311,528

208,254
25,315
233,569

279,616
31,912
311,528

Net income
Other comprehensive income, net of tax
Items that will not be reclassified to profit or loss
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 accounted for using the equity method
Total items that may be reclassified subsequently to
profit or loss
Total other comprehensive income, net of tax
Total comprehensive income
Total comprehensive income attributable to
Owners of the parent
Non-controlling interests

38SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2018

(3) Condensed Interim Consolidated Statement of Changes in Equity
For the three-month period ended June 30, 2017
(Millions of yen)
Equity attributable to owners of the parent
Noncontrollinginterests
883,378

Total equity
4,469,730

5,521

25,01930,540202,733

202,733296

203,029-

202,733

208,254

25,315

233,569(23,964)--(23,964)(29,421)(53,385)

-

(726)

1,302

-

576

-

576

-

(2,995)---(2,995)

3,106

111

-

4,061

-

-

-

4,061

-

4,061

-

49

-

-

-

49

-

49

-

684

-

-

-

684

(399)

285

-

-

-

-

-

-

(247)

(247)

-

1,799

(24,690)

1,302-(21,589)(26,961)(48,550)

238,772

247,505

2,939,186(66,425)

413,979

3,773,017

881,732

4,654,749

Accumulated

As of April 1, 2017
Comprehensive income
Net income
Other comprehensive
incomeTotal comprehensive
incomeTransactions with owners
and other transactions
Cash dividends
Purchase and disposal oftreasury stock
Changes in interests in
subsidiaries
Changes in associates’interests in theirsubsidiaries
Changes in interests inassociates’ capitalsurplus
Share-based paymenttransactions
Other
Total transactions withowners and othertransactions
As of June 30, 2017

other
Treasury comprehensive
stock
Total
income(67,727)
211,246
3,586,352

Commonstock
238,772

Capitalsurplus245,706

Retainedearnings
2,958,355

-

-

5,521

-

-

-

-

-

-

-

-

5,521

-

-

-

39

SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2018

For the three-month period ended June 30, 2018
(Millions of yen)

Equity attributable to owners of the parent

As of April 1, 2018
Effect of retrospective
adjustments due to adoption of
new standards*
As of April 1, 2018
(after adjustments)
Comprehensive income
Net income
Other comprehensive
incomeTotal comprehensive income
Transactions with owners andother transactions
Cash dividends
Transfer of accumulated othercomprehensive income toretained earnings
Purchase and disposal of treasury
stock
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 June 30, 2018

Commonstock
238,772

Capitalsurplus256,768

Other equity
instruments

496,876

Retainedearnings
3,940,259

Treasurystock(66,458)---

300,615

238,772

256,768

496,876---

Accumulated
othercomprehensive
income317,959

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

242,787

4,240,874(66,458)

260,1315,426,963-

313,687--

313,687

-

-

-

-

(34,071)(34,071)---

313,687-(34,071)

279,616---(23,969)--(23,969)

-

-

-

387

-

(387)

-

-

-

-

-

(4)

-

(4)

-

197

-

-

-

-

197

-

4,541

-

-

-

-

4,541

-

(250)

-

-

-

-

(250)

-

2,004
684

-

-

-

-

2,004
684

-

7,176

-

(23,582)

(4)

(387)

(16,797)

238,772

263,944496,876

4,530,979(66,462)

225,673

5,689,782

40

SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2018

(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
Transfer of accumulated othercomprehensive income toretained earnings
Purchase and disposal of treasury
stock
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 June 30, 2018

Noncontrollinginterests
1,088,846

Total equity
6,273,022

21,300264,087

1,110,146

6,537,109

14,433

328,120

17,479(16,592)

31,912

311,528(29,483)(53,452)

-

-

-

(4)

18,195

18,392

-

4,541

-

(250)

1,170
(548)

3,174
136

(10,666)(27,463)

1,131,392

6,821,174

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 “(3) Effect of adopting new standards and interpretations”
in “1. Significant accounting policies” under “(6) Notes to Condensed Interim Consolidated Financial Statements.”

41

SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2018

(4) Condensed Interim Consolidated Statement of Cash Flows(Millions of yen)Three-month period ended
June 30, 2017

Three-month period ended
June 30, 2018

30,540371,991-

328,120
405,153(161,347)(106,871)(247,211)

120,870

148,467

Income on equity method investments(1,634)(37,705)

Derivative loss

257,059

54,080Gain from financial instruments at FVTPL
Change in third-party interests in SoftBank Vision Fundand Delta Fund
Foreign exchange loss (gain) and other non-operating
loss
Income taxes
Decrease in trade and other receivables
Increase in inventories(24,613)(94,542)

43,58972,889

6,434

(500)

47,02861,489(98,530)

244,184
63,741(78,014)

Decrease in trade and other payables(66,365)(98,806)

Other(88,292)(24,059)

552,695
5,681(111,708)(250,959)
245
195,954574,450
10,314(160,620)(150,141)416
274,419(284,038)(333,374)(864,699)(267,903)(47,992)(176,963)

5,867-

78,70356,826(77,066)(140,640)

178,134

37,093(91,366)
127,841(15,033)(1,068,352)(244,107)
199,305(101,049)(892,109)

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

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
Payments for acquisition of investments by SoftBank
Vision Fund and Delta Fund
Proceeds from sales/redemption of investments
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 into time deposits
Proceeds from withdrawal of time deposits
Other
Net cash used in investing activities

42

SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2018

(Millions of yen)Three-month period ended
June 30, 2017

Three-month period ended
June 30, 2018

176,788

612

Proceeds from interest-bearing debt

335,513

1,436,683

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
Cash dividends paid

(480,920)(1,388,998)-

180,212-(161,259)(23,162)(23,365)

Cash dividends paid to non-controlling interests(28,995)(29,348)

Other(5,246)(63,045)(26,022)(48,508)

3,288

59,827

Decrease in cash and cash equivalents(895,132)(606,371)

Cash and cash equivalents at the beginning of the period

2,183,102

3,334,650

Cash and cash equivalents at the end of the period

1,287,970

2,728,279

Cash flows from financing activities
Proceeds in short-term interest-bearing debt, net

Net cash used in financing activities
Effect of exchange rate changes on cash and cash equivalents

43

SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2018(5) Significant Doubt about Going Concern Assumption
There are no applicable items.
(6) Notes to Condensed Interim Consolidated Financial Statements
1. Significant accounting policies
Significant accounting policies applied to this condensed interim consolidated financial statements are the same as
the accounting policies applied to the consolidated financial statements for the fiscal year ended March 31, 2018,
except for the following. In addition, income taxes for the three-month period ended June 30, 2018 are calculated
based on the estimated effective tax rate and certain defined benefit liabilities for the three-month period ended June30, 2018 are calculated by predictive computation based on a reasonable estimation in accordance with the results ofan actuarial calculation as of March 31, 2018.
Significant accounting policies for SoftBank Vision Fund and Delta Fund are the same as the fiscal year ended
March 31, 2018. The details are described in “(4) Significant accounting policies for SoftBank Vision Fund and Delta
Fund.”(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 condensed interim 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

44

SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2018

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 is not restated.
(2) Significant accounting policies changed due to the adoption of new standards and interpretations
a. Financial instruments
The Company has adopted IFRS 9 from the three-month period ended June 30, 2018. The Company has elected not
to restate comparative information in accordance with the transition requirements of IFRS 9. Therefore, thecomparative information complies with IAS 39. Accounting policies applied for the three-month period ended June30, 2018 are as follows:(a) Financial instruments
Financial assets and financial liabilities are recognized when the Company becomes a party to the contractual
provisions of the financial instrument.
Financial assets and financial liabilities are measured at fair value at initial recognition. Transaction costs that are
directly attributable to the acquisition of financial assets and issuance of financial liabilities other than financial
assets measured at fair value through profit or loss (“financial assets at FVTPL”) and financial liabilities at fairvalue through profit or loss (“financial liabilities at FVTPL”) are added to the fair value of the financial assets or
deducted from the fair value of financial liabilities at initial recognition. Transaction costs that are directly
attributable to the acquisition or issuance of the financial assets at FVTPL or financial liabilities at FVTPL arerecognized in profit or loss.
(b) Non-derivative financial assets
Non-derivative financial assets are classified as “financial assets at amortized cost,” “debt financial assets at fairvalue through other comprehensive income (“debt financial assets at FVTOCI”),” “equity financial assets at fairvalue through other comprehensive income (“equity financial assets at FVTOCI”),” and “financial assets at
FVTPL.” The classification depends on the nature and purpose of the financial assets and is determined upon initialrecognition.
All purchases and sales of financial assets made in a regular way are recognized and derecognized on a trade datebasis. Purchases and sales made in a regular way refer to acquiring or disposing of financial assets under a contractthat requires the delivery of assets within a time frame established by regulation or convention in the marketplace.
i. Financial assets measured at amortized cost
Financial assets are classified as “financial assets at amortized cost” if both of the following conditions are met:
・the financial assets are held within a business model whose objective is to hold financial assets in order tocollect contractual cash flows; and・the contractual terms of the financial assets give rise on specified dates to cash flows that are solely payments
of principal and interest on the principal amount outstanding.
Subsequent to initial recognition, financial assets at amortized cost are measured at amortized cost using theeffective interest method, less any impairment. Interest income based on the effective interest rate is recognizedin profit or loss.
ii. Debt financial assets at FVTOCI
Financial assets are classified as “debt financial assets at FVTOCI” if both of the following conditions are met:
・the financial assets are held within a business model whose objective is achieved by both collecting contractual
cash flows and selling financial assets; and・the contractual terms of the financial assets give rise on specified dates to cash flows that are solely payments
of principal and interest on the principal amount outstanding.

45SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2018

Subsequent to initial recognition, debt financial assets at FVTOCI are measured at fair value and gains or losses
arising from changes in fair value are recognized in other comprehensive income. Any cumulative amounts
recognized in other comprehensive income are reclassified to profit or loss upon derecognition. Foreignexchange gains and losses arising on monetary financial assets classified as debt financial assets at FVTOCI
and interest income calculated using the effective interest method relating to debt financial assets at FVTOCI
are recognized in profit or loss.
iii. Equity financial assets at FVTOCI
At initial recognition, the Company has made an irrevocable election for equity financial assets that would
otherwise be measured at fair value through profit or loss to present subsequent changes in fair value in othercomprehensive income and classifies such investments as “equity financial assets at FVTOCI.” Subsequent toinitial recognition, equity financial assets at FVTOCI are measured at fair value and gains or losses arising fromchanges in fair value are recognized in other comprehensive income.
When financial assets are derecognized or there is a significant or prolonged decline in fair value below the cost,
cumulative gains and losses recognized in other comprehensive income are directly transferred to retained
earnings. Dividends received on equity financial assets at FVTOCI are recognized in profit or loss.
iv. Financial assets at FVTPL
Financial assets are classified as “financial assets at FVTPL,” if they are classified as neither “financial assets
at amortized cost,” “debt financial assets at FVTOCI,” nor “equity financial assets at FVTOCI.” Please refer to“(4) Significant accounting policies for SoftBank Vision Fund and Delta Fund” for details of “Investmentsfrom SoftBank Vision Fund and Delta Fund accounted for using FVTPL” in the condensed interim
consolidated statement of financial position. Neither financial assets are designated as measured at fair value
through profit or loss to eliminate or significantly reduce an accounting mismatch.
Subsequent to initial recognition, financial assets at FVTPL are measured at fair value and gains or losses
arising from changes in fair value, dividend income and interest income are recognized in profit or loss.
v. Impairment of financial assets
A loss allowance is recognized for expected credit losses on financial assets at amortized cost, debt financial
assets at FVTOCI, and contract assets under IFRS 15 “Revenue from Contracts with Customers.” At each fiscal
period-end, the Company assesses whether the credit risk on financial assets has increased significantly sinceinitial recognition. If the credit risk on financial assets has not increased significantly since initial recognition,
the Company measures the loss allowance for financial assets at an amount equal to 12-month expected credit
losses. If the credit risk on financial assets has increased significantly since initial recognition or for credit
impaired financial assets, the Company measures the allowance account for the financial assets at an amountequal to the lifetime expected credit losses. However, the Company always measures the loss allowance at an
amount equal to the lifetime expected credit losses for trade receivables and contract assets.
Expected credit losses are estimated in a way that reflects the following:
・an unbiased and probability-weighted amount that is determined by evaluating a range of possible outcomes;
・the time value of money; and・reasonable and supportable information that is available without undue cost or effort at the reporting date
about past events, current conditions and forecasts of future economic conditions.
Provision of the loss allowance relating to the measurement is recognized in profit or loss. Reversal of the loss
allowance is also recognized in profit or loss when events that reduce the loss allowance occur in subsequent
periods.
The carrying amount of financial assets is directly reduced against the loss allowance when the Company has
no reasonable expectations of recovering financial assets in its entirety or a portion thereof.

46

SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2018

vi. Derecognition of financial assets
The Company derecognizes a financial asset when, and only when the contractual rights to the cash flows fromthe financial asset expire or when it transfers the financial asset and substantially all the risks and rewards ofownership of the financial asset.
(c) Non-derivative financial liabilities
Non-derivative financial liabilities are classified into “financial liabilities at FVTPL” or “financial liabilities atamortized cost” and the classification is determined at initial recognition.
Non-derivative financial liabilities are classified into “financial liabilities at FVTPL” when the entire hybrid
contract, including more than one embedded derivative, is designated as financial liabilities at FVTPL.
Subsequent to initial recognition, financial liabilities at FVTPL are measured at fair value and gains or losses
arising from changes in fair value and interest costs are recognized in profit or loss.
Financial liabilities measured at amortized cost are measured using the effective interest method, subsequent toinitial recognition.
The Company derecognizes financial liabilities when the Company’s obligations are met, or debt is discharged orcancelled or expires.
(d) Derivatives and hedge accounting
i. Derivatives
The Company is engaged in derivative transactions, including foreign currency forward contracts, currency
swaps and collar transactions in order to manage its exposure to foreign exchange rates, interest rates and shareprice risks.
Derivatives are initially recognized at fair value at the date the derivative contracts are entered into and aresubstantially measured at their fair values at the end of the fiscal year. Changes in the fair value of derivatives
are recognized in profit or loss immediately unless the derivative is designated and effective as hedging
instruments. Derivative financial assets not designated as hedging instruments are classified into “financial
assets at FVTPL” and derivative financial liabilities not designated as hedging instruments are classified into“financial liabilities at FVTPL.”
ii. Hedge accounting
The Company designates certain derivative transactions as hedging instruments and accounts for them as cash
flow hedges.
At the inception of the hedge, the Company formally designates and documents the hedge relationshipqualifying for hedge accounting, along with its risk management objectives and its strategy for undertaking
various hedge transactions. At the inception of the hedge and on an ongoing basis, the Company evaluates
whether the hedging instrument is highly effective in offsetting changes in fair values or cash flows of therelevant hedged item during the underlying period. Specifically, hedge is determined effective when all of thefollowing criteria are met:(i) there is an economic relationship between the hedged item and the hedging instrument;(ii) the effect of credit risk does not dominate the value changes that result from that economic relationship;and(iii) the hedge ratio of the hedging relationship is the same as that resulting from the quantity of the hedged
item the Company actually hedges and the quantity of the hedging instrument the Company actually uses
to hedge the quantity of the hedged item.

47

SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2018

If a hedging relationship ceases to meet the hedge effectiveness requirement relating to the hedge ratio but therisk management objective remains the same, the Company adjusts the hedge ratio so that the hedging
relationship becomes effective again.
The effective portion of changes in the fair value of derivatives that are designated and qualifying as cash flow
hedges is recognized in other comprehensive income and accumulated in equity. Accumulated othercomprehensive income is transferred to profit or loss through a line item relating to the hedged item in thecondensed interim consolidated statement of income in the periods when the cash flows from the hedged item
affect profit or loss. Any ineffective portion of changes in fair value of derivatives is recognized immediately
in profit or loss.
When the hedged forecasted transaction subsequently results in the recognition of non-financial assets or
non-financial liabilities, the Company transfers the accumulated other comprehensive income previously
recognized in other comprehensive income and includes them in the measurement of initial cost of thenon-financial assets or non-financial liabilities (basis adjustment).
The Company discontinues hedge accounting prospectively only when the hedging relationship ceases to meetthe qualifying criteria, such as instances when the hedging instrument expires or is sold, terminated or
exercised.
When hedge accounting is discontinued, accumulated other comprehensive income remains in equity and arereclassified to profit or loss when the forecasted transaction is ultimately recognized in profit or loss. When aforecasted transaction is no longer expected to occur, accumulated other comprehensive income is reclassified
immediately to profit or loss.
iii. Embedded derivatives
Derivatives embedded in non-derivative financial assets host contracts (“embedded derivatives”) are notseparated from the host contracts and accounted for as hybrid contracts in its entirety.
When the economic characteristics and risks of the derivatives embedded in non-derivative financial liabilities
host contracts (“embedded derivatives”) are not closely related to the economic characteristics and risks of thehost contracts and the whole financial instruments, including the embedded derivatives, are not classified as
financial liabilities at FVTPL, the embedded derivatives are separated from the host contracts and accounted
for separately as derivatives. If it is required to separate embedded derivatives from its host contracts, but theCompany is unable to measure the embedded derivatives separately either at acquisition or at the end of asubsequent fiscal period, the Company designates and accounts for the entire hybrid contract as financial
liabilities at FVTPL.
b. Revenue
The company has adopted IFRS 15 from the three-month period ended June 30, 2018. The Company has elected not
to restate comparative information in accordance with the transition requirements of IFRS 15. Therefore, thecomparative information complies with IAS 11 and IAS 18. Accounting policies applied for the three-month period
ended June 30, 2018 are as follows.
Also, the Company has changed the reporting segment from the three-month period ended June 30, 2018. Pleaserefer to “Note 2. Segment information” for details.
The Company’s accounting policy for revenue recognition is as follows:
SoftBank segment and Sprint segment
In the SoftBank segment and Sprint segment, the Company mainly provides mobile telecommunications services,
sales of mobile handsets, and fixed-line telecommunications services. In the SoftBank segment, the Company also
provides broadband services and distribution services.

48

SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2018(a) Mobile telecommunications services and sales of mobile handsets
The Company provides mobile telecommunications services, which consist of voice communications, datatransmission and related optional services to subscribers, and sells mobile handsets to customers.
In the mobile telecommunications service, revenues are mainly generated from basic monthly charges and telecom
services (“revenues from the mobile telecommunications service”) and other fees. Also, revenues from the sale ofmobile handsets (“revenues from the sale of mobile handsets”) are generated from the sale of mobile handsets andaccessories to subscribers or dealers.
The business flow of the above transactions consists of “Indirect sales,” where the Company sells mobile handsets
to dealers and enters into telecommunications service contracts with subscribers through dealers, and “Direct
sales,” where the Company sells mobile handsets to subscribers and enters into telecommunications service
contracts directly with subscribers.
Revenues from the mobile telecommunications service are invoiced to subscribers on a monthly basis and theinvoice is due within a short time frame. Revenues from the sale of mobile handsets in “Indirect sales” areinvoiced when the mobile handsets are sold to dealers, and most of the invoices are due within a short time frame.
Revenues from the sale of mobile handsets in “Direct sales” are invoiced either in a lump-sum, where payments
are made in full upon sale, or in installments, where the installments are invoiced on a monthly basis over the
installment period and the invoice is due within a short time frame. The Company has determined that thesetransaction prices do not include a significant financing component arising from the timing of payments, andtherefore, does not adjust for such financing component.
The Company has obligations for returns and refunds for mobile telecommunications services and sales of mobile
handsets over a certain period of time after contract inception. The estimated amount of obligations for returns andrefunds is determined by type of product and service based on past experiences and is deducted from thetransaction prices.
In the SoftBank segment, the Company provides extended warranty for mobile handsets as an optional service andsuch service is considered as a separate performance obligation in the contract under which such service isprovided.
Revenues from the sale of mobile handsets that are subject to lease contracts are recognized over the lease term
under operating leases, and recognized at inception under finance leases.
Under the prepaid contracts, prepaid amounts from the customer are recognized as contract liabilities and reversed
based on the ratio of usage to the total expected usage amount, and then recognized as revenue.
i. Indirect sales
Revenues from the sale of mobile handsets are recognized as revenue when mobile handsets are delivered todealers, which is when dealers deemed to obtain control of the mobile handsets. In the SoftBank segment,
commission fees paid to dealers related to the sales of mobile handsets are estimated based on experience anddeducted from revenues.
Mobile telecommunications services are recognized as revenue when services are provided to subscribers.
Discounts on the communication charges are deducted from mobile telecommunications service revenues.
Activation fees and upgrade fees are recognized as contract liabilities and reversed as the Company provides
mobile telecommunications services and then recognized as revenue.
ii. Direct sales
As the revenues from the sales of mobile handsets and the mobile telecommunications services, including thefees, are considered to be one transaction, the total transaction price is allocated to mobile handsets and mobile
telecommunications services on the basis of the stand-alone selling price ratio. Discounts for both the sale ofmobile handsets and mobile telecommunications charges are deducted from the total transaction price.

49

SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2018

As a result of the price allocation above, if the revenue recognized at the sales of mobile handsets exceeds theconsideration received from subscribers, the difference will be recognized as contract assets, and transferred to
trade receivables when the right to invoice is established as mobile telecommunications services are provided. If
the consideration received from subscribers exceeds the revenue recognized at the sales of mobile handset, thedifference will be recognized as contract liabilities. Those contract liabilities will be reversed as the Company
provides mobile telecommunications services and recognized as revenue.
A stand-alone selling price for the mobile handsets and mobile telecommunications services are observable
selling prices when the Company sells the mobile handsets and mobile telecommunications service separately tocustomers at the start of the contract.
The amount allocated to the sale of mobile handsets is recognized when mobile handsets are delivered tosubscribers which is when the subscribers obtain control of mobile handsets.
The amount allocated to mobile telecommunications services is recognized when the service is provided tosubscribers.
Contract assets are included in “Other current assets” or “Other non-current assets and contract liabilities areincluded in “Other current liabilities” or “Other non-current liabilities in the condensed interim consolidated
statement of financial position.
(b) Fixed-line Telecommunications service
In the fixed-line Telecommunications service, revenues are generated mainly from voice communications anddigital data transmission services (“revenues from fixed-line telecommunications service”).
Revenues from fixed-line telecommunications services are recognized as revenues when services are provided tosubscribers, based upon fixed monthly charges plus the usage of the network.
The Company’s accounting policy for revenue recognition of broadband services and distribution services in the
SoftBank segment is as follows:(c) Broadband services
For broadband services, revenues are mainly generated from basic monthly charges, telecom services (“revenues
from broadband services”) primarily related to internet connection, and other fees.
Revenues from broadband services are recognized as revenues when services are provided to subscribers, based
upon fixed monthly charges plus the usage of the network.
(d) Distribution services
For distribution services, revenues are generated mainly from the sales of PC software, peripherals and mobile
handsets accessories in Japan. Revenues from distribution services are recognized when the customer deems tohave acquired control over the goods, which is the point in time at which the goods are delivered to the customer.
For transactions conducted by the Company on behalf of third parties, revenue is presented on a net basis byexcluding payment to third parties from the total consideration received from customers.
Yahoo Japan segment
In the Yahoo Japan segment, revenues are generated mainly from sponsored search advertising, display advertising,product sales, e-commerce related commission fees and revenue from membership.
Sponsored search advertising revenue is recognized when a visitor to the website clicks the advertisement.
Display advertising comprises premium advertising, Yahoo! Display Ad Network (“YDN”) and other services.
Revenue from premium advertising is recognized over a period in which related advertisement is displayed.

50

SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2018

Revenue from YDN is recognized when a visitor to the website clicks the advertisement on the webpage with therelated content.
Revenue from product sales is recognized when the customer obtains control of a product, which is the point in timeat which the customer has obtained the ability to direct the use of, and obtain substantially all of the remaining
benefits from, the product.
Revenue from e-commerce related commission fees is mainly generated from Yahoo! Auctions. Yahoo! Auctions
provides online auction services to individual and corporate customers. When products are sold, system usage fee
for successful bid from the sellers are recognized as revenue at the time of closing of sales.
Revenue from membership fees is generated from the sale of “Yahoo! Premium,” which provides various benefits toindividual customers and is recognized over the membership periods.
Arm segment
In the Arm segment, revenue is mainly generated from licenses to Arm’s technology and the royalties arising fromthe subsequent sale of licensees’ chips that contain Arm’s technology.
The license revenue related to right to use intellectual property is recognized when the customer obtains control ofthe license, which is the point in time at which the customer has obtained the ability to direct the use of, and obtain
substantially all of the remaining benefits from the license.
Royalty revenues are generated from the sale of the licensees’ chips that contain Arm technology and are recognizedat the time of licensee’s chip sales. The Company estimates the royalty revenue that will be generated from thelicensee’s chip sales in the current quarter. These are then trued-up in the subsequent quarter following the receipt ofthe licensees’ royalty report.
Brightstar segment
In the Brightstar segment, revenues are generated mainly from distribution of mobile handsets totelecommunications service providers and retailers overseas.
Revenue in the Brightstar segment is recognized when the customer obtains control of a product, which is the point
in time at which the customer has obtained the ability to direct the use of, and obtain substantially all of theremaining benefits from, the product.
For transactions conducted by the Company on behalf of third parties, revenue is presented on a net basis byexcluding payment to third parties from the total consideration received from customers.
c. Costs to obtain contracts
The Company recognizes the costs that would not have been incurred if the telecommunications service contract had
not been obtained and that are expected to be recovered, as assets from the costs to obtain contracts. The Company
capitalizes mainly the sales commissions that the Company pays to dealers for obtaining and maintaining mobile
telecommunications service contracts with subscribers.
The costs to obtain contracts are amortized on a straight-line basis over the period during which goods or services
related to such costs are expected to be provided. At each fiscal year-end and quarterly period-end, the Company
assesses the capitalized costs to obtain contracts for impairment.
Using a practical expedient in accordance with IFRS 15, the Company accounts for the costs to obtain contracts as
expenses when incurred if the amortization period of the costs to obtain contracts is one year or less.

51SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2018(3) Effect of adopting new standards and interpretations
Financial impacts of applying “IFRS 9 Financial Instruments” and “IFRS 15 Revenue from Contracts with Customers”
on condensed interim consolidated statement of financial position as of April 1, 2018 and condensed interim
consolidated financial statements for the three-month period ended June 30, 2018 are as follows:(Condensed Interim 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

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

Other current assets

344,374(177)

12,416356,613

Intangible assets

6,784,550-(13,271)

6,771,279--

304,778

304,778

647,51431(54,466)

593,079

221,232-(21,999)

199,233

1,816,010-(62,238)

1,753,772

Other current liabilities

658,961-

46,900705,861

Deferred tax liabilities

1,085,626-

41,387

1,127,013

303,915-(58,029)

245,886

Retained earnings
Accumulated other comprehensive
Income5

3,940,259

52,537

248,078

4,240,874

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

Non-controlling interests

1,088,846(22)

21,322

1,110,146

Inventories
1

Costs to obtain contracts2
Deferred tax assets
1

Other non-current assets

LIABILITIES AND EQUITY
Trade and other payables1
1

Other non-current liabilities1
1,2,5

52

SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2018

(Condensed Interim Consolidated Statement of Financial Position)
As of June 30, 2018
(Millions of yen)
IFRS 9Adjustment
amount

Before adoption

IFRS 15
Adjustment
amountAfter adoption

ASSETS
Trade and other receivables

2,224,428

70

11,2002,235,698

334,257-(2,435)331,822

Other current assets

334,455(137)

22,551

356,869

Intangible assets

6,945,824-(14,378)

6,931,446--

306,888306,888

Deferred tax assets

673,213220(52,700)

620,733

Other non-current assets1

218,937-(13,309)205,628

1,735,820-(68,125)

1,667,695

Inventories
1

Costs to obtain contracts2

LIABILITIES AND EQUITY
Trade and other payables1
1

Other current liabilities

626,265-

52,160678,425

Deferred tax liabilities

1,290,306(33)

49,9081,340,181

320,871-(67,313)

253,558

Retained earnings
Accumulated other comprehensive
Income5

4,216,467

47,516

266,996

4,530,979

272,241(47,305)

737

225,673

Non-controlling interests

1,107,493(22)

23,921

1,131,392

Other non-current liabilities1
1,2,5(Condensed Interim Consolidated Statements of Income)Three-month period ended June 30, 2018
(Millions of yen)
IFRS 9Adjustment
amount

Before adoption
1

IFRS 15
Adjustment
amountNet sales

2,247,330-

Cost of sales(1,310,382)
936,948

After adoption

25,4532,272,783-(6,278)(1,316,660)-

19,175956,123(635,775)

(14)

7,804

(627,985)

Other operating loss

(14,179)

66

(323)

(14,436)

Operating income

688,285

52

26,656

714,993

35,701

2,004-

37,705Gain from financial instruments at FVTPL

81,831

12,711-

94,542Other non-operating loss3,5(2,714)(9,711)-(12,425)

Income taxes(228,191)(10,955)(5,038)(244,184)

Net income

312,543(5,899)21,476328,120Gross profit
Selling, general and administrative
expenses2

Income on equity method investments
553SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2018

(Condensed Interim Consolidated Statements of Comprehensive Income)Three-month period ended June 30, 2018
(Millions of yen)
IFRS 9Adjustment
amount

Before adoption
Net income

IFRS 15
Adjustment
amountAfter adoption

312,543(5,899)21,476328,120

-

748

-

748

(6,529)

6,529

-

-

-

35

-

35

16,876-145

17,021(11,726)(2,070)-(13,796)

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 incomeof associates 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.
There are no significant impacts on basic earnings per share and diluted earnings per share for the three-month period
ended June 30, 2018.

54

SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2018

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.

55

SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2018(4) Significant accounting policies for SoftBank Vision Fund and Delta FundFor Softbank Vision Fund and Delta Fund, the Company continues to apply the same accounting policies as those forthe fiscal year ended March 31, 2018 as follows.
a. Consolidation of the SoftBank Vision Fund and Delta Fund business 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 SB Investment Advisers (UK) Limited(“SBIA”). SBIA is an advisory company and is a wholly-owned subsidiary of the Company. As such, the Company
has power as defined under IFRS 10 “Consolidated Financial Statements” over 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 the Funds, and therefore, the Company is deemed to have control as stipulated in IFRS 10 overeach Fund.
Inter-company transactions such as management fees and performance fees to SBIA paid or to be paid from SoftBank
Vision Fund and Delta Fund are eliminated in consolidation.
b. Portfolio company investments made by SoftBank Vision Fund and Delta Fund(a) Investments in subsidiaries
Of the portfolio company investments made by SoftBank Vision Fund, the portfolio companies that the Company isdeemed to control under IFRS 10 are subsidiaries of the Company. Accordingly, their results of operations, assets
and liabilities are included in the Company’s condensed interim consolidated financial statements.
Gain and loss on investments in the subsidiaries of the Company which are recognized in the SoftBank Vision Fundare eliminated in consolidation.
(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 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 under contractual
arrangements and the investors have rights to the net assets of the arrangement.
The investments in associates and joint ventures of the Company made by SoftBank Vision Fund are accounted for
as financial assets at FVTPL in accordance with paragraph 18 of IAS 28, and presented as “Investments from
SoftBank Vision Fund and Delta Fund accounted for using FVTPL” in the condensed interim consolidated statementof financial position. The payments for these investments are presented as “Payments for acquisition of investments
by SoftBank Vision Fund and Delta Fund” under cash flows from investing activities in the condensed interim
consolidated statement of cash flows.
(c) Other investments
Investments other than those in associates or joint ventures of the Company made by the SoftBank Vision Fund andDelta Fund are accounted for as financial assets at FVTPL. The presentation of these investments in the condensed
interim consolidated statement of financial position and the condensed interim consolidated statement of cash flows
are the same as the above “(b) Investments in associates and joint ventures.”c. Presentation of the results from the SoftBank Vision Fund and Delta Fund business
Income and loss arising from the SoftBank Vision Fund and Delta Fund business are separated from operating income
and loss arising from other businesses, recognized as a component of operating income, and presented as “Operating
income from SoftBank Vision Fund and Delta Fund” in the condensed interim consolidated statement of income. Gain
and loss arising from “b. Portfolio company investments made by SoftBank Vision Fund and Delta Fund” (realized
gain and loss on sales of investments, unrealized gain and loss on valuation of investments, interest and dividend
income from investments, except for gain and loss on investments in subsidiaries) and operating expenses such asincorporation expenses of entities that comprise SoftBank Vision Fund and Delta Fund, investment research expenses

56SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2018arising from SBIA and other Japan and U.S. advisory companies which support SBIA, and administrative expenses
arising from each entity, are included in “Operating income from SoftBank Vision Fund and Delta Fund.”d. Investments made by the Company based on the premise of transferring to SoftBank Vision Fund and Delta Fund
Investments in associates, joint ventures or other investments made by SoftBank Group Corp. or its subsidiaries basedon the premise of transferring to SoftBank Vision Fund and Delta Fund are recognized as financial assets at FVTPL.
In cases where the investees are the Company’s subsidiaries and the Company is transferring those investments to
SoftBank Vision Fund, the investments are accounted for in accordance with the above “(a) Investments in
subsidiaries” under “b. Portfolio company investments made by SoftBank Vision Fund and Delta Fund,” regardless ofwhether the investments are agreed to be transferred.
(a) Investments made in the three-month period ended June 30, 2018 based on the premise of transfer
If the investments are agreed to be transferred from the Company to SoftBank Vision Fund or Delta Fund, andregulatory approval to make the investments by SoftBank Vision Fund or Delta Fund is obtained (such investments
are referred to as “Agreed Transferable Investments”) as of June 30, 2018, the Company presents items relevant tothose investments as “Investments from SoftBank Vision Fund and Delta Fund accounted for using FVTPL” in thecondensed interim consolidated statement of financial position, “Operating income from SoftBank Vision Fund andDelta Fund” in the condensed interim consolidated statement of income, and “Payments for acquisition of
investments by SoftBank Vision Fund and Delta Fund” under cash flows from investing activities in the condensed
interim consolidated statement of cash flows, as if SoftBank Vision Fund and Delta Fund had made thoseinvestments from the date when the Company initially made the investments.
On the other hand, if the investments have not yet become the Agreed Transferable Investments as of June 30, 2018,
the Company presents items relevant to those investments as “Investment securities” in the condensed interim
consolidated statement of financial position, “Gain from financial instruments at FVTPL” in the condensed interim
consolidated statement of income, and “Payments for acquisition of investments” under cash flows from investing
activities in the condensed interim consolidated statement of cash flows.
(b) Investments made on or prior to March 31, 2018 based on the premise of transfer
If the investments become the Agreed Transferable Investments in the three-month period ended June 30, 2018, theCompany presents the carrying amounts of those investments as “Investments from SoftBank Vision Fund and Delta
Fund accounted for using FVTPL” in the condensed interim consolidated statement of financial position as of June30, 2018 and gain and loss on investments as “Operating income from SoftBank Vision Fund and Delta Fund” in thecondensed interim consolidated statement of income for the three-month period ended June 30, 2018, as if theinvestments had been agreed to be transferred at April 1, 2018. In such case, the carrying amounts of thoseinvestments are presented as “Investment securities” in the condensed interim consolidated statement of financial
position as of March 31, 2018, gain and loss on investments as “Gain from financial instruments at FVTPL” in thecondensed interim consolidated statement of income for the three-month period ended June 30, 2017, and payments
for acquisition of investments as “Payments for acquisition of investments” under cash flows from investing
activities in the condensed interim consolidated statement of cash flows for the three-month period ended June 30,
2017.
e. Contribution from Limited Partners to SoftBank Vision Fund and Delta Fund
SoftBank Vision Fund and Delta Fund issue capital calls from their respective limited partners (“Capital Call”).
(a) Contribution from Limited Partners other than the Company
The interests attributable to limited partners of SoftBank Vision Fund and Delta Fund other than the Company(“Third-Party Investors”) are classified as financial liabilities, “Third-party interests in SoftBank Vision Fund andDelta Fund” in the condensed interim consolidated statement of financial position, due to the predetermined finite
life (at least 12 years from the final closing) and contractual payment provision to each of the limited partners at theend of the finite life within SoftBank Vision Fund and Delta Fund’s limited partnership agreements. The liabilities
are classified as “financial liabilities measured at amortized cost” upon initial recognition. The carrying amounts
attributable to Third-Party Investors represent the amounts that would be distributed in accordance with the limited
partnership agreement in a theoretical liquidation scenario at the end of each quarter.
“Third-party interests in 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

57

SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2018

Vision Fund and Delta Fund are presented as “Change in third-party interests in SoftBank Vision Fund and Delta
Fund” in the condensed interim consolidated statement of income.
Contributions from Third-Party Investors to SoftBank Vision Fund and Delta Fund are included in “Contributions
into SoftBank Vision Fund and Delta Fund from third-party investors” under cash flows from financing activities in
the condensed interim consolidated statement of cash flows. The distributions and repayments of investments toThird-Party Investors are included in “Distribution/repayment from SoftBank Vision Fund and Delta Fund to
third-party investors” under cash flows from financing activities in the condensed interim consolidated statement ofcash flows.
Uncalled committed capital from Third-Party Investors is not subject to IFRS 9, “Financial Instruments,” andtherefore such amount is not recorded in the condensed interim consolidated statement of financial position.
(b) Contribution from the Company
Contribution from the Company to SoftBank Vision Fund and Delta Fund as a limited partner is eliminated inconsolidation.

58

SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2018

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., 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 the Agreed
Transferable Investments (gain and loss on investments at SoftBank Vision Fund and Delta Fund), and operating
expenses and other expenses incurred in SoftBank Vision Fund and Delta Fund, SBIA and advisory companies in
the U.S. and Japan.
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 three-month period ended June 30, 2017 is presented based on the reportablesegments 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 unrealized gain and loss on valuation of investments in SoftBank Vision Fund andDelta Fund and other adjustments (gains are deducted)) by each reportable segment. “Other adjustments” arespecial items, such as acquisition-related costs and impairment loss mainly included in other operating income
and loss.

59SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2018

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 this income andlosses are excluded from segment performance.
For the three-month period ended June 30, 2017
(Millions of yen)

Reportable segments

SoftBank

Sprint

Yahoo
Japan

Arm

SoftBank
Vision Fundand Delta Fund

Total

Brightstar

Net sales
Customers

831,349

875,020

204,179

47,036-

213,653

2,171,237

Intersegment

10,52135,403

5,204

1

-

6,475

57,604

Total

841,870

910,423

209,383

47,037-220,128

2,228,841

Segment income

220,342

131,987

50,904(6,935)105,229(1,328)500,199

Reconciliation of segment income to adjusted EBITDA
Segment income
Depreciation andamortization

220,342

131,987

50,904(6,935)105,229(1,328)500,199

113,196

230,832

9,647

14,883-

1,486

370,044

EBITDA
Unrealized gain (loss) on
valuation of investments
in SoftBank Vision Fundand Delta Fund

333,538

362,81960,551

7,948

105,229

158

870,243(106,871)

-

-

-

-

(106,871)-

Other adjustments-(40,966)(4,929)---(45,895)

Adjusted EBITDA

333,538

321,853

55,622

7,948(1,642)

158

717,477(Millions of yen)

Reconciliations

Other

Consolidated

Net sales
Customers

14,822-

2,186,059

Intersegment

2,587(60,191)-

Total

17,409(60,191)

2,186,059

Segment income(4,530)(16,396)479,273

Reconciliation of segment income to adjusted EBITDA
Segment income
Depreciation andamortization(4,530)(16,396)479,273

1,533

414

371,991(2,997)(15,982)

EBITDA
Unrealized gain (loss) on
valuation of investments
in SoftBank Vision Fundand Delta Fund

851,264--(106,871)

Other adjustments

-

1,612

(44,283)

Adjusted EBITDA(2,997)(14,370)

700,11060

SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2018

For the three-month period ended June 30, 2018
(Millions of yen)

Reportable segments

SoftBank

Sprint

Yahoo
Japan

Arm

SoftBank
Vision Fundand Delta Fund

Total

Brightstar

Net sales
Customers

869,874

842,488

220,269

41,533-

247,406

2,221,570

Intersegment

10,58640,754

5,867

1

-

6,422

63,630

Total

880,460

883,242

226,136

41,534-

253,8282,285,200

Segment income

221,795

98,10838,750145,192

239,944(5,345)

738,444

Reconciliation of segment income to adjusted EBITDA
Segment income
Depreciation andamortization

221,795

98,10838,750145,192

239,944(5,345)

738,444112,223

253,535

12,441

18,537

6

1,179

397,921

EBITDA
Gain relating to loss ofcontrol over subsidiaries
Unrealized gain (loss) on
valuation of investments
in SoftBank Vision Fundand Delta Fund

334,018

351,643

51,191

163,729

239,950(4,166)

1,136,365---(161,347)--(161,347)(245,802)

-

-

-

-

(245,802)-

Other adjustments

-

8,523

-

-

-

-

8,523

Adjusted EBITDA

334,018

360,166

51,191

2,382(5,852)(4,166)

737,739(Millions of yen)

Reconciliations

Other

Consolidated

Net sales
Customers

51,213-2,272,783

Intersegment

2,467(66,097)-

Total

53,680(66,097)

2,272,783

Segment income(7,924)(15,527)

714,993

Reconciliation of segment income to adjusted EBITDA
Segment income
Depreciation andamortization(7,924)(15,527)

714,993

6,905

327

405,153

EBITDA
Gain relating to loss ofcontrol over subsidiaries
Unrealized gain (loss) on
valuation of investments
in SoftBank Vision Fundand Delta Fund

(1,019)(15,200)

1,120,146--(161,347)(245,802)--

Other adjustments

232

-

8,755

Adjusted EBITDA(787)(15,200)

721,75261

SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2018

3. Assets classified as held for sale in SoftBank Vision Fund and Delta Fund
The Company reclassified all of its Flipkart Private Limited shares held by Softbank Vision Fund to “Assets classified
as held for sale in SoftBank Vision Fund and Delta Fund” in the condensed interim consolidated statement of financial
position as of June 30, 2018, as Softbank Vision Fund entered into a share purchase agreement with WAL-MART
INTERNATIONAL HOLDINGS, INC. on May 9, 2018.
4. 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
June 30, 2018
238,276
2,314,142
877,519
89,171
376,550
80,2503,975,908

5. 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
June 30, 2018

3,960,597
664,878
12,226

4,127,602
690,477
12,711

739,901
521,603
332,444
125,866
115,333
89,27857,357
165,067
6,784,550

731,764495,669
308,451
139,604
114,968
87,00858,565
164,627
6,931,446

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.

62SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2018

6. 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
June 30, 2018

957,573
100,000
1,093,705
590,277455,670889,195
93,0001,284,352
688,017452,449-

719,037

20,1803,217,405

16,946
4,142,996

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

5,235,143
7,198,967
760,122688,332-

14,607
13,824,783

11,73013,205,962

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 ofJune 30, 201887,259313,143
400,4023,436
544,168
547,604

108,749
108,749

83,537
83,537509,151

631,141(10,744)(16,149)

498,407614,992

2. The details are described in “(2) Transaction for sale of Alibaba shares by variable prepaid forward contract.”

63SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2018

(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
from the $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 the first scheduled trading
day after June 1, 2019, Trust Securities are exchanged for a certain number of ADSs, determined by reference tothe 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 thevariable prepaid forward contract is classified as a hybrid financial instrument with embedded derivatives of acollar 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; ¥719,037 million (¥688,332 million recognized as financial liabilities relating to the sale of shares throughthe variable prepaid forward contract in interest-bearing debt (non-current liabilities) as of March 31, 2018) isrecognized as the current portion of financial liabilities relating to the sale of shares through the variable prepaid
forward contract in interest-bearing debt (current liabilities) and ¥764,761 million (¥714,126 million recognized
as derivative financial liabilities (non-current liabilities) as of March 31, 2018) is recognized as derivative
financial liabilities (current liabilities) in the condensed interim consolidated statement of financial position as ofJune 30, 2018; ¥21,371 million (¥259,677 million of derivative loss for the three-month period ended June 30,2017) is recognized as a derivative loss in the condensed interim consolidated statement of income for thethree-month period ended June 30, 2018.
WRH LLC has the option (“cash settlement option”) to settle the variable prepaid forward contract by eitherdelivering cash or a combination of cash and Alibaba shares. If WRH LLC elects the cash settlement option, thecash equivalent to the fair value of the number of shares for the settlement, which is determined by the transaction
price of ADSs, will be paid.
Also, WRH LLC has the option (“early settlement option”) to settle the variable prepaid forward contract prior to
the scheduled settlement date. Settlement of the variable prepaid forward contract may be made prior to thescheduled settlement date if WRH LLC elects the early settlement option or under certain circumstances.
Alibaba shares held by WRH LLC are pledged as collateral. The Company applies the equity method to theseshares and they are included in “Investments accounted for using the equity method” in the condensed interim
consolidated statement of financial position as of June 30, 2018. The carrying amount of Alibaba shares pledged
as collateral by the Company is ¥217,275 million as of June 30, 2018 (¥217,182 million as of March 31, 2018).

64

SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2018

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 condensed interim consolidated
statement of cash flows are as follows:(Millions of yen)Three-month period ended Three-month period ended
June 30, 2017
June 30, 2018
163,788
7,612
13,000(7,000)Net increase of short-term borrowings
Net increase (decrease) of commercial paper
Total

176,788612(4) Components of proceeds from interest-bearing debt
The components of “Proceeds from interest-bearing debt” in the condensed interim consolidated statement ofcash flows are as follows:(Millions of yen)Three-month period ended Three-month period ended
June 30, 2017
June 30, 2018
219,167
588,956
722,744

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

116,346

124,983

335,513

1,436,683(5) Components of repayment of interest-bearing debt
The components of “Repayment of interest-bearing debt” in the condensed interim consolidated statement of cash
flows are as follows:(Millions of yen)Three-month period ended Three-month period ended
June 30, 2017
June 30, 2018
(169,289)(499,775)(177,328)(757,640)(118,610)(125,106)(15,693)(6,477)(480,920)(1,388,998)

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

65

SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2018

7. Third-party interests in SoftBank Vision Fund and Delta Fund
Changes in interests attributable to Third-Party Investors (“Third-party interests in SoftBank Vision Fund and Delta
Fund”) are as follows:(Millions of yen)(For reference purposes only)
Links with the condensed interim consolidated
financial statements

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

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

1,844,679
180,212-180,212

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

72,889(72,889)-

Distribution to third-party investors(156,649)-(156,649)(4,610)-(4,610)76,208--19,47353,416

Fixed distributions(37,965)

Performance-based distributions(118,684)

Repayment to third-party investors
Exchange differences on translating
third-party interests*
As of June 30, 2018

2,012,729

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

In addition, uncalled committed capital from Third-Party Investors as of June 30, 2018 are $47.4 billion.

8. Foreign currency exchange rates
Exchange rates of the major currencies used for translating financial statements of foreign operations are as follows:(1) Rate at the end of the period

USD
GBP

(Yen)
As of
June 30, 2018110.54144.59As ofMarch 31, 2018106.24148.8466

SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2018

(2) Average rate for the quarter

USD
GBP

Three-month period ended
June 30, 2017111.61142.92(Yen)
Three-month period ended
June 30, 2018108.71147.54

9. Other equity instruments
On July 19, 2017, the Company issued USD-denominated Undated Subordinated Non-Call 6 years (“NC6”)
Resettable Notes and USD-denominated Undated Subordinated Non-Call 10 years (“NC10”) Resettable Notes(collectively, the “Hybrid Notes”).
The Hybrid Notes are classified as equity instruments in accordance with IFRSs because the Company has the option
to defer interest payments, the notes have no maturity date, and the Company has an unconditional right to avoid
delivering cash or another financial asset except for distribution of residual assets on liquidation.
10. Accumulated other comprehensive income
The components of accumulated other comprehensive income are as follows:(Millions of yen)

As ofMarch 31, 2018

As ofJune 30, 2018

Available-for-sale financial assets

63,700-Equity financial assets at FVTOCI-

10,132

Debt financial assets at FVTOCI-

55(55,286)(75,495)

309,545

290,981

317,959

225,673

Cash flow hedges
Exchange differences on translating
foreign operations
Total

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 ofretained earnings and accumulated other comprehensive income. The details are described in “(3) Effect of adopting new
standards and interpretations” under “Note 1. Significant accounting policies.”

67SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2018

11. 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 $775 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 ¥161,347 million.
12. Other operating income (loss)
The components of other operating income and loss are as follows:(Millions of yen)

Sprint segment
Loss on disposal of property, plant andequipment*
Reversal of favorable lease
Gain on contract termination
Gain on spectrum license exchange
Legal reserves
Other
Yahoo Japan segment
Insurance income
Company-wide
Expenses resulting from resignation of director
Other
Loss on equity method investments at Fortress
Total

Three-month period ended
June 30, 2017

Three-month period ended
June 30, 2018(31,955)(13,445)558
53,435
6,186
928(3,810)
3,060
(9)

4,929

-

(1,612)

-

-

(232)

32,469(14,436)

Note:* ¥13,445 million of loss resulted from the write-off of leased devices related to lease cancellations prior to the endof the scheduled customer lease terms where customers did not return the devices to Sprint are recognized for thethree-month period ended June 30, 2018.

13. Finance cost
The components of finance cost are as follows:(Millions of yen)Three-month period ended
June 30, 2017

Three-month period ended
June 30, 2018

(120,870)(148,467)

Interest expenses

68SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2018

14. Other non-operating loss
The components of other non-operating income and loss are as follows:(Millions of yen)Three-month period ended Three-month period ended
June 30, 2017
June 30, 2018
3,236
6,623

Interst income
Loss on redemption of corporate bonds
Other
Total

(7,207)(14,538)(667)(4,638)(4,510)(12,425)

15. Income and loss arising from the SoftBank Vision Fund and Delta Fund business included in the condensed
interim consolidated statement of income
Income and loss arising from the SoftBank Vision Fund and Delta Fund business included above the income before
income tax line in the condensed interim consolidated statement of income are calculated by aggregating income
and loss arising from SoftBank Vision Fund and Delta Fund, income and loss arising from each general partner,
income and loss arising from SBIA and two advisory companies which support SBIA in the U.S. and Japan. Allinter-company transactions have also been eliminated.
(Millions of yen)

Gain and loss on investments at SoftBank Vision
Fund and Delta Fund1
Unrealized gain and loss on valuation of
investments
Interest and dividend income from investments
Operating expenses
Operating income from SoftBank Vision Fundand Delta Fund
Finance cost2
Foreign exchange gain and loss
Derivative gain and loss
Change in third-party interests in SoftBank Vision
Fund and Delta Fund
Other non-operating income and loss
Income before income tax

Three-month period ended
June 30, 2017

Three-month period ended
June 30, 2018106,871

245,802106,871(1,642)

1,409
247,211(7,267)105,229

239,94410-(5,031)(40)
1,197(43,589)(72,889)

61,650(276)
162,905

Notes:
1. “Realized gain and loss on sales of investments” is not recognized for the three-month period ended June 30,
2018.
2. The amount before elimination of inter-company transactions is ¥(5,120) million for the three-month period
ended June 30, 2018.

16. Supplemental information to the condensed interim consolidated statement of cash flows
Distribution and repayment from SoftBank Vision Fund and Delta Fund to third-party investors
For the three-month period ended June 30, 2018
The distributions and repayments from SoftBank Vision Fund and Delta Fund to third-party investors are¥(156,649) million and ¥(4,610) million respectively.

69