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

SoftBank Group Corp.
Consolidated Financial Report
For the Six-month Period Ended September 30, 2018 (IFRS)Tokyo, November 5, 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 theincomeparentAmountAmountAmountAmountNet sales
Amount%%%Six-month period ended¥4,653,853 5.5 ¥1,420,716 62.4 ¥1,402,089 540.2 ¥870,670
September 30, 2018
Six-month period ended
September 30, 2017%%

Amount%505.7 ¥840,103 718.6 ¥1,059,084 105.8¥4,411,135 3.3 ¥874,839 35.1 ¥219,021 (66.8) ¥143,742 (82.0) ¥102,622 (86.6) ¥514,591 635.5

Basic earnings per
share (yen)Diluted earnings per
share (yen)Six-month period ended
September 30, 2018¥756.22¥752.26

Six-month period ended
September 30, 2017¥88.29¥84.97(2) Financial Position

Total assets

Total equity

Equityattributable toowners of theparentAs of September 30, 2018¥33,807,555¥7,343,144¥6,345,035

18.8

As of March 31, 2018

¥31,180,466¥6,273,022¥5,184,176

16.6

2.

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

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 37 “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 September 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 September 30, 2018: 10,563,436 shares
As of March 31, 2018:
11,162,425 shares[3] Number of average shares outstanding during six-month period (April-September):
As of September 30, 2018: 1,089,590,981 shares
As of September 30, 2017: 1,089,430,669 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 November 5, 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://group.softbank/en/corp/irinfo/presentations/. The Data Sheet will also be posted on the Company’s website around 4
p.m. on the same day at https://group.softbank/en/corp/irinfo/presentations/.

SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 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. 26(3) Overview of Cash Flows .................................................................................................................................. P. 34(4) Forecasts ........................................................................................................................................................... P. 36
2. Notes to Summary Information ............................................................................................................................... P. 37
Changes in Accounting Policies .............................................................................................................................. P. 37
3. Condensed Interim Consolidated Financial Statements and Primary Notes ............................................................ P. 37(1) Condensed Interim Consolidated Statement of Financial Position .................................................................... P. 38(2) Condensed Interim Consolidated Statement of Income and Condensed Interim Consolidated Statement ofComprehensive Income .................................................................................................................................... P. 40(3) Condensed Interim Consolidated Statement of Changes in Equity ................................................................... P. 44(4) Condensed Interim Consolidated Statement of Cash Flows .............................................................................. P. 47(5) Significant Doubt about Going Concern Assumption ....................................................................................... P. 49(6) Notes to Condensed Interim Consolidated Financial Statements ...................................................................... P. 49
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.
Delta Fund
Alibaba
SBIA
The first quarter
The second quarter
The period
The fiscal year
The previous fiscal year

SoftBank Vision Fund (AIV M1) L.P.
SB Delta Fund (Jersey) L.P.
Alibaba Group Holding Limited
SB Investment Advisers (UK) Limited
Three-month period ended June 30, 2018
Three-month period ended September 30, 2018
Six-month period ended September 30, 2018
Fiscal year ending March 31, 2019
Fiscal year ended March 31, 20181

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

1. Results of Operations(1) Overview of Results of Operations
1. Highlights of results
 Operating income: ¥1,420.7 billion (increased 62.4% yoy)- SoftBank Vision Fund recorded realized gain of ¥146.7 billion on the sale of Flipkart shares and valuation gainof ¥503.8 billion due to an increase in the fair values of NVIDIA, OYO, and other investments
 Net income attributable to owners of the parent: ¥840.1 billion (¥102.6 billion in the same period of the previous fiscal year)- Gain of ¥203.9 billion from financial instruments at FVTPL, reflecting the higher fair values of shares held
- Derivative gain of ¥42.4 billion (versus loss of ¥504.7 billion in the same period of the previous fiscal year),mainly related to Alibaba shares
2. Cluster of No.1 Strategy progressed Merger of Sprint with T-Mobile: application documents filed with relevant regulatory authorities, review underway
 Listing of SoftBank Corp.: application made to list shares on the Tokyo Stock Exchange, review underway

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 revised its segment classifications for management purposes in the first quarter, comprising six
reportable segments: SoftBank, Sprint, Yahoo Japan, Arm, SoftBank Vision Fund and Delta Fund, and Brightstar. See “b.
Results by Segment” for a summary of reportable segments.

2

SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 30, 2018a. Consolidated Results of Operations(Millions of yen)Six months ended September 30
2017
2018
PreviousNew
standards
standards
Net sales
Operating income (excluding
income from SoftBank Vision
Fund and Delta Fund)
Operating income from
SoftBank Vision Fund andDelta Fund
Operating income
Income before income tax
Net income
Net income attributable to ownersof the parent

ChangeChange %Six months ended
September 30, 2018
Impact of adopting
new standards

4,411,135

4,653,853

242,718

5.5%

39,413

688,601

788,282

99,681

14.5%

47,016

186,238
874,839
219,021
143,742

632,434
1,420,716
1,402,089
870,670

446,196545,877
1,183,068
726,928

239.6%
62.4%
540.2%
505.7%

28,95975,97597,89890,243

102,622840,103

737,481718.6%

84,834

Notes:
1. The new standards were adopted in the first quarter. Figures for the same period of the previous fiscal year, to which the newstandards are not applied, are presented under the “previous standards.” The impacts of adopting new standards on the results of theperiod are presented under “impact of adopting new standards.” See “(2) 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 impact 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

¥111.61¥111.38

Fiscal year ended
March 2018
Q3
Q4
¥112.74¥108.85

Fiscal year ending
March 2019
Q1
Q2
¥108.71¥111.55

An overview of the consolidated results of operations for the period is as follows:(a) Net Sales
Net sales increased ¥242,718 million (5.5%) year on year, to ¥4,653,853 million. Net sales increased in the following
segments: SoftBank, Sprint, Yahoo Japan, and Brightstar. However, net sales decreased in 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 ¥99,681 million (14.5%) year
on year, to ¥788,282 million. Segment income increased ¥6,169 million in the SoftBank segment and ¥156,036 million in
the Arm segment. However, segment income deteriorated ¥8,848 million in the Sprint segment, ¥13,512 million in theYahoo Japan segment, and ¥8,505 million in the Brightstar segment.
The segment income of the Arm segment includes gain relating to loss of control over subsidiaries of ¥176,261 million,
which was recognized due to Arm’s Chinese subsidiary becoming an associate accounted for using the equity method,3

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

following the establishment of a joint venture.
(c) Operating Income from SoftBank Vision Fund and Delta Fund
Operating income from SoftBank Vision Fund and Delta Fund was ¥632,434 million, compared with income of ¥186,238
million in the same period of the previous fiscal year. This was mainly due to the gains at SoftBank Vision Fund: realized
gain of ¥146,682 million recorded on the sale of Flipkart Private Limited (“Flipkart”) shares and unrealized gain on valuation of ¥503,769 million recorded due to an increase in the fair values of NVIDIA Corporation (“NVIDIA”), Oravel Stays
Private Limited (“OYO”),1 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 ¥545,877 million (62.4%) year on year, to ¥1,420,716 million.

(e) Finance Cost
Finance cost increased ¥78,884 million (32.4%) year on year, to ¥322,342 million. Interest expense increased ¥54,398
million at SoftBank Group Corp. This was due mainly to an increase in interest-bearing debt associated with the issuanceof foreign currency-denominated senior notes in September 2017 and the borrowings using Alibaba shares made by awholly owned subsidiary of the Company in March 2018, as well as to the recognition of ¥24,051 million as a result of thefull amortization of the unamortized balance of an amortized cost relating to the partial repayment of a senior loan.
(Millions of yen)Six months ended September 30
2017
2018
(243,458)(322,342)

Change(78,884)

SoftBank Group Corp.2(83,939)(138,337)(54,398)

Sprint(136,563)(143,596)(7,033)$(1,224) million$(1,304) million$(80) million

Finance Cost

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

Income on equity method investments increased ¥2,048 million (1.9%) year on year, to ¥110,338 million. This was mainly
due to an increase of ¥1,973 million (1.6%) in income on equity method investments related to Alibaba, to ¥121,616 million.
The difference between net income attributable to Alibaba on an IFRS basis ((A) in the table below) and on a US GAAP
basis ((B) in the table below) for the six-month period ended June 30, 2018, is mainly due to the treatment of the compensation based on shares of Ant Small and Micro Financial Services (“Ant Financial”) offered by a major equity holder of
Ant Financial to the employees of Alibaba. The increase in the fair value of Ant Financial, among others, was recognized
as a cost based on US GAAP, but was not recognized as a cost based on IFRSs.

The names of the investments of SoftBank Vision Fund are presented in the order of the size of the investments’ impact on the Company’s financial
results, unless otherwise stated. The same rule applies throughout this appendix.
2
Includes interest expenses arising from borrowings using Alibaba shares made by a wholly owned subsidiary1

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

Reference: Net Income Attributable to Alibaba and the Company’s Income on Equity Method Investments Related to
Alibaba
Six months ended June 303
2017
2018

ChangeAlibaba
Million CNY

Net income attributable to Alibaba (US GAAP)

25,330Million CNY

Net income attributable to Alibaba (IFRSs)

24,169Million CNY(B)Million CNY

16,389(8,941)Million CNY

Million CNY(A)

25,041872

Six months ended September 30
2017
2018

ChangeIncome on equity method investments related to Alibaba(Reference) Interest ratio as of June 30
Income on equity method investments(Reference) Effective exchange rate CNY/JPY
Income on equity method investments

29.48%

29.08%(0.40) pp

Million CNY

Million CNY

Million CNY

7,215

7,349

134

¥16.58¥16.55¥(0.03)

Million yen

Million yen

Million yen

119,643

121,616

1,973(g) Foreign Exchange Gain and Loss
Foreign exchange gain was ¥29,942 million, compared with gain of ¥10,942 million in the same period of the previous
fiscal year.

(h) Derivative Gain and Loss
Derivative gain was ¥42,407 million, compared with loss of ¥504,681 million in the same period of the previous fiscal year.
Due to a fall in the price of Alibaba shares from the end of the previous fiscal year, derivative gain of ¥141,386 million
was recorded in relation to a collar transaction embedded in the variable prepaid forward contract, compared with loss of¥508,421 million in the same period of the previous fiscal year. On the other hand, derivative loss of ¥80,886 million wasrecorded at SoftBank Vision Fund in relation to borrowings utilizing a portion of shareholdings.

(i) Gain and Loss from Financial Instruments at FVTPL
Gain from financial instruments at FVTPL was ¥203,866 million, compared with gain of ¥10,207 million in the same
period of the previous fiscal year. This gain arises from the change in the fair values of investments held by the Company
outside of SoftBank Vision Fund and Delta Fund. In the period, the gain was mainly attributable to an increase in the fairvalue of the investment in Uber Technologies, Inc. (“Uber”).
The investments in Uber, Xiaoju Kuaizhi Inc. (“DiDi”), GRAB HOLDINGS INC. (“Grab”), and ANI Technologies
Private Limited (“Ola”) held by the Company are not yet transferred to SoftBank Vision Fund as of September 30, 2018.
The Company expects that the necessary procedures will be made in the future to obtain applicable consent from limited
partners of the Fund and regulatory approvals for the transfer.

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 Six-Month Period Ended September 30, 2018(j) Changes in Third-party Interests in SoftBank Vision Fund and Delta Fund
Changes in third-party interests in SoftBank Vision Fund and Delta Fund amounted to an increase of ¥199,757 million,
compared with an increase of ¥77,157 million in the same period of the previous fiscal year. An increase in third-party
interest is a negative on income. The breakdown is as below:(Millions of yen)Six months ended September 30
2017
2018
Changes in third-party interests in SoftBank Vision Fund

(77,087)(196,541)

Attributable to investors entitled to fixed distribution(2,971)(37,441)

Attributable to investors entitled to performance-based distribution(74,116)(159,100)(70)(3,216)(70)(3,216)(77,157)(199,757)

Changes in third-party interests in Delta Fund
Attributable to investors entitled to fixed distribution
Changes in third-party interests in SoftBank Vision Fund and Delta Fund

Changes in third-party interests in SoftBank Vision Fund and Delta Fund indicate the sum of distributions to third-party
investors in proportion to their interests in fixed distribution and performance-based distribution. The distributions are
based on the gain and loss on investments at both Funds, net of management and performance fees payable to the Funds’
manager SBIA, the Company’s wholly owned subsidiary, and operating and other expenses of the Funds. See “(a) Contribution from Limited Partners other than the Company” under “f. Contribution from Limited Partners to SoftBank Vision
Fund and Delta Fund” in “(3) 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) Gain from Remeasurement Relating to Discontinuing the Use of the Equity Method
Gain from remeasurement relating to discontinuing the use of the equity method, which was not recorded in the same
period of the previous fiscal year, was ¥89,209 million. In September 2018, the Company entered into a voting proxy deed
for the Company’s equity method associate PT Tokopedia with one of its shareholders, which resulted in a decrease in thenumber of the voting rights exercisable by the Company, and subsequently PT Tokopedia no longer qualified as an equity
method associate. The recorded gain arose from the remeasurement of the Company’s retained interest in PT Tokopedia at
fair value on the date of discontinuing the use of the equity method.
The Company recognized that the transfer of PT Tokopedia from the Company to SoftBank Vision Fund was agreed in
October 2018.
(l) Other Non-operating Income and Loss
Other non-operating income was ¥27,710 million, compared with income of ¥40,039 million in the same period of theprevious fiscal year. See “14. Other non-operating income” under “(6) Notes to Condensed Interim Consolidated Financial
Statements” in “3. Condensed Interim Consolidated Financial Statements and Primary Notes” for details.
(m) Income before Income Tax
As a result of (d) to (l), income before income tax increased ¥1,183,068 million (540.2%) year on year, to ¥1,402,089
million.

6

SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 30, 2018(n) Income Taxes
Income taxes were ¥531,419 million, compared with ¥75,279 million in the same period of the previous fiscal year, andthe effective income tax rate was 37.9%.4 Capital gains on investments in entities that operate businesses in India aresubject to tax in India. Consequently, current taxes of ¥64,892 million were recorded for the aforementioned realized gain
in Flipkart, which mainly operates businesses in India. The sale of Flipkart shares occurred within 24 months of making
the investment, and therefore was taxed at 43.68%, the Indian short-term capital gains tax rate.

(o) Net Income
As a result of (m) and (n), net income increased ¥726,928 million (505.7%) year on year, to ¥870,670 million.

(p) 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 (o), net income attributable to owners of the parent increased ¥737,481 million year on year, to ¥840,103 million.

(q) Comprehensive Income
Comprehensive income increased ¥544,493 million year on year, to ¥1,059,084 million. Of this, comprehensive income
attributable to owners of the parent increased ¥526,166 million, to ¥999,177 million.

Completion of Tender Offer by SoftBank Corp. for Yahoo Japan Corporation Shares and Acquisition by Yahoo
Japan Corporation of Its Own Shares by Self-tender Offer
During the second quarter, SoftBank Corp. acquired 613,888,900 shares (equivalent to ¥221.0 billion) of Yahoo Japan
Corporation mainly from Altaba Inc. of the United States. Further, in relation to the acquisition by Yahoo Japan Corporation of its own shares by self-tender offer, SoftBank Group Japan Corporation, a wholly owned subsidiary of theCompany, sold 611,109,700 Yahoo Japan Corporation shares (equivalent to ¥220.0 billion) to Yahoo Japan Corporation.
Consequently, as of September 28, 2018, the shareholding ratio of Yahoo Japan Corporation shares held by the Company is 48.16% (all of which are indirect holdings through subsidiaries, including SoftBank Corp.’s shareholding of
12.08%).

4

Ratio of corporate income tax expenses to income before income tax

7SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 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 revised its segment classifications for management purposes in the first quarter, comprising six reportable segments:
SoftBank, Sprint, Yahoo Japan, Arm, SoftBank Vision Fund and Delta Fund, and Brightstar. 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 ± adjustments relating to investments in SoftBank Vision Fund and Delta Fund (unrealized gain and loss on valuation of investments + effect of foreign exchange translation)
For historical principal operational data of each segment, their calculation methods, and definitions of terms, see the Data Sheeton the Company’s website at https://group.softbank/en/corp/irinfo/presentations/.

8SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 30, 2018(a) SoftBank Segment
1. Steady customer base expansion: smartphone subscribers increased 950,000, and SoftBank Hikari subscribers increased 520,000 from the previous fiscal year-end
2. Segment income increased 1.4% yoy, to ¥446.9 billion, despite the negative impact of adopting the newstandards
3. Adjusted free cash flow was ¥145.0 billion, affected by the acquisition of Yahoo Japan Corporation
shares for ¥221.0 billion(Millions of yen)Six months ended September 30
2017
2018
PreviousNew
standards
standards

Six months ended
September 30, 2018

ChangeChange %Impact of adopting
new standards

1,706,562

1,795,103

88,541

5.2%(17,993)

Segment income

440,776

446,945

6,169

1.4%

(12,356)

Depreciation and amortization

228,963

225,709(3,254)(1.4%)-

Other adjustments

-

81

81

-

-

Adjusted EBITDA

669,739672,735

2,996

0.4%

(12,356)

Capital expenditures(acceptance basis)

129,378

183,989

54,611

42.2%-

324,316

129,791(194,525)(60.0%)-

330,725

145,005(185,720)(56.2%)-Net sales

Free cash flow
*1

Adjusted free cash flow

Note: The new standards were adopted in the first quarter. Figures for the same period of the previous fiscal year, to which the newstandards are not applied, are presented under the “previous standards.” The impacts of adopting new standards on the resultsof the period are presented under “impact of adopting new standards.”
Note:
1. 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.

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

Recent Strategic Developments Offering three brands: SoftBank, Y!mobile, and LINE MOBILE5 to better respond to customers’ various needs
 Collaborating with Yahoo Japan Corporation to differentiate from other carriers- Offering subscribers bonus points and free use of member benefits
5

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 Six-Month Period Ended September 30, 2018

- Acquired Yahoo Japan Corporation shares in August 2018 to further strengthen collaboration and promote growth Creating new businesses- Collaboration with investees of the SoftBank Group progressed:· Jointly rolled out the office-sharing services business of WeWork Companies Inc. (WeWork) in Japan· Began providing a taxi booking platform, in stages, through a joint venture with Didi Chuxing Technology Co.
from September 2018
· Launched PayPay smartphone payment service in September 2018, which uses QR code, through a joint venturewith Yahoo Japan Corporation, and in collaboration with One97 Communications Limited (PayTM)- Announced an agreement with Toyota Motor Corporation in October 2018 on the establishment of a joint investmentcompany with the aim of building a Mobility-as-a-Service (MaaS) business

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

Telecom service (mobile and broadband) and related products for retail customers

Enterprise:

Mobile communications services and related products, fixed-line communications services andrelated products, solutions for enterprise customers

Distribution:

Business of SoftBank Commerce & Service Corp.

Sales Breakdown(Millions of yen)Consumer
Telecom service revenue
MobileBroadband
Product and other sales
Enterprise
MobileFixed-line telecommunications
Solutions
Distribution
OthersTotal net sales

Six months ended September 30
2017
2018
PreviousNew
standards
standards
1,241,056
1,287,303
979,312962,217

Change46,247
17,095

Change %3.7%
1.8%

292,170
129,268
105,690
57,212
147,368
25,968803,567
175,745
307,991
300,163
128,639
105,91765,607
175,737
31,900(8,020)25,115
29,152
7,993
(629)
227
8,395
28,3695,932(1.0%)
16.7%
10.5%
2.7%
(0.5%)
0.2%
14.7%
19.3%
22.8%

1,706,562

1,795,103

88,541

5.2%

811,587
150,630
278,839

Note: The new standards were adopted in the first quarter. Figures for the same period of the previous fiscal year, to which the newstandards are not applied, are presented under the “previous standards.”

Net sales increased ¥88,541 million (5.2%) year on year, to ¥1,795,103 million, as consumer revenue increased¥46,247 million (3.7%), and distribution revenue increased ¥28,369 million (19.3%).

10

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

The increase in consumer revenue is attributable to an increase in revenues of product and other sales associated witha rise in the average shipping price of smartphones, as well as to an increase in telecom service revenue resulting froman increase in broadband revenue. The increase in distribution revenue is mainly due to strong sales of software and PCs
for enterprise customers.
Segment income increased ¥6,169 million (1.4%) year on year, to ¥446,945 million. Operating expenses (cost of
sales and selling, general and administrative expenses) increased ¥82,291 million (6.5%) year on year, mainly reflecting
an increase in the cost of products. However, the increase in total net sales, mainly contributed by the increase in telecom
service revenue, exceeded the rise in operating expenses. Adjusted EBITDA increased ¥2,996 million (0.4%) year
on year, to ¥672,735 million.
The adoption of the new standards had a negative impact of ¥17,993 million on net sales, and of ¥12,356 million on
both segment income and adjusted EBITDA.
Capital expenditures, on basis of acceptance, increased ¥54,611 million (42.2%) year on year, to ¥183,989 million, due
to initiatives to expand service areas and improve the quality of LTE services.
Adjusted free cash flow decreased ¥185,720 million (56.2%) year on year, to ¥145,005 million. This was mainly
due to the acquisition of Yahoo Japan Corporation shares for ¥221,000 million.
For the SoftBank segment’s non-audited information on the results of the previous fiscal year that the new standards are reflected, see the Data Sheet published on the Company’s website at: http://group.softbank/en/corp/irinfo/presentations/

OPERATIONS
MobileSubscribers (Main Subscribers6)(Thousands)

March 31, 2018

September 30, 2018

Change33,17533,954

778

Cumulative subscribers

Cumulative subscribers increased from the previous fiscal year-end due to smartphone net additions of 953,000. Net
additions of smartphones were attributable to the strong growth in the number of Y!mobile and SoftBank subscribers, aswell as to the addition of LINE MOBILE smartphone subscribers in accordance with the consolidation of LINE MOBILE
Corporation in April 2018.
Cumulative subscribers included 376 thousand subscribers (an increase of 110 thousand from the previous fiscal yearend) to Wireless 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)

6

March 31, 2018

September 30, 2018

ChangeMobile

8,148

8,821

673

Broadband

3,887

4,202

314

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 Six-Month Period Ended September 30, 2018

Number of Units Sold (Main Subscribers)(Thousands)

Six months ended September 30
2017
2018

ChangeNumber of units sold

4,842

5,138

296

New subscriptions

2,264

2,303

39

Device upgrades

2,579

2,836

257

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.

ARPU7 (Main Subscribers)
Three months ended September 30
2017
2018
ARPU

¥4,370¥4,330Change¥(40)

Note: The figure reflects the comparison after adopting IFRS 15 to certain elements of ARPU for both the second 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, both of which have a lower service charge. On the flip side, the negative impact of telecommunications service discounts on ARPU diminished due to a reduction in discount amounts in ARPU related to the Home
Bundle Discount Hikari Set and to the introduction of a 48-month installment billing program.

Churn Rate (Main Subscribers)
Three months ended September 30
2017
2018

ChangePhone churn rate

0.74%

0.71%

0.03 pp improvement

Churn rate

1.01%

0.93%

0.08 pp improvement

The churn rate improved, mainly due to improved churn rates in mobile data communications devices and smartphones.
Broadband
Subscribers(Thousands)

March 31, 2018

September 30, 2018

ChangeCumulative subscribers

7,039

7,385

345

SoftBank Hikari

4,974

5,499

525

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

7

Reflects the impact of adopting IFRS 15 on the re-allocation of revenue (e.g., allocation between communications services and product revenues aswell as mobile and broadband revenues)

12SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 30, 2018(b) Sprint Segment
1. U.S. dollar-based quarterly wireless telecom service revenue returned to year-on-year growth for the
first time in nearly five years on a U.S. dollar basis, excluding the impact of adopting the new standards
2. Adjusted free cash flow remained positive even after the expansion of capital expenditures for building
the next-generation network
3. Completed filing of documents to obtain regulatory approvals for the merger with T-Mobile,review underway(Millions of yen)Six months ended September 30
2017
2018
PreviousNew
standards standards
Net sales

Six months ended
September 30, 2018
ChangeChange %Impact of adopting
new standards

1,793,327

1,824,024

30,6971.7%

31,487202,176

193,328(8,848)(4.4%)

46,060

Segment income

463,991

517,328

53,337

11.5%

-

8

(37,136)

16,54053,676--

Adjusted EBITDA

629,031

727,196

98,165

15.6%

46,06016,084

16,558

474

2.9%

283

14,415
144
1,813
4,162
(333)

14,501
(301)
1,756
4,697
150

86
(445)
(57)
535
483

0.6%
(3.1%)
12.9%
-

(134)
417
-

5,642

6,603

961

17.0%

417

Depreciation and amortization
Other adjustments

U.S. dollar-based results (IFRSs)
Net sales
Cost of sales and selling, generaland administrative expenses
Other operating income (loss)
Segment income
Depreciation and amortization
Other adjustments8
Adjusted EBITDA
Reference: Disclosed by Sprint (US GAAP)
Network capital expenditures (cash basis)(Millions of U.S. dollars)(Millions of U.S. dollars)

1,843

2,398

555

30.1%

-

788

533

(255)

(32.4%)-

Adjusted free cash flow

Note: The new standards were adopted in the first quarter. Figures for the same period of the previous fiscal year, to which the newstandards are not applied, are presented under the “previous standards.” The impacts of adopting new standards on the results of the period are presented under “impact of adopting new standards.”

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

8

Primary components include gain and loss from non-recurring factors, such as gain on spectrum license exchange and income and loss on contract
termination among items included in other operating income, and loss and merger-related expenses included in cost of sales and selling, general andadministrative expenses.

13SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 30, 2018

Merger of Sprint and T-Mobile9
On April 29, 2018, Sprint and T-Mobile US Inc. (“T-Mobile”) entered into a definitive agreement to merge in an allstock transaction (the “Transaction”). Upon completion of the Transaction, the combined company is expected to become an equity method associate of the Company with an approximately 27.4% shareholding, and Sprint will no longer
be a subsidiary of the Company. To obtain regulatory approvals for the merger, Sprint and T-Mobile completed the HartScotto-Rodino filing with the Department of Justice on May 24, 2018. Furthermore, the parties filed with the Federal
Communications Commission the merger applications on June 18, 2018 and the Federal Communications Commission
accepted the applications for filing on July 18, 2018.
FINANCIAL RESULTS
Results in U.S. dollars
Net sales increased $474 million (2.9%) year on year, to $16,558 million. Of the net sales increase, $283 million
comes from adopting the new standards, with a negative impact on telecom service revenue and a positive impact onequipment revenue. Excluding these impacts, net sales increased year on year. Although telecom service revenue fell
mainly due to the decrease in wireline revenue, equipment revenue increased due to the increase in equipment rentals
revenue.
Of telecom service revenue, excluding the negative impact of adopting the new standards, quarterly wireless telecom
service revenue achieved year-on-year growth for the three-month period ended September 30, 2018 for the first timein nearly five years. The customer base has been expanding steadily, and the postpaid ARPU has been stabilizing andincreased from the prior quarter.

Segment income decreased $57 million (3.1%) year on year, to $1,756 million. The adoption of the new standards
had a positive impact of $417 million on segment income. Specifically, this was due to the abovementioned positive
impact on net sales and the effect of reducing operating expenses (cost of sales and selling, general and administrative
expenses) through the capitalization of costs to obtain contracts. However, even with this positive effect, operating
expenses increased $86 million (0.6%) year on year, to $14,501 million. While the cost of equipment decreased, depreciation expenses increased due to a rise in leased device assets. Other operating income and loss deteriorated $445
million year on year, due to the absence of one-time gains recognized in the same period of the previous fiscal year,
such as gain on spectrum license exchange.
Adjusted EBITDA increased $961 million (17.0 %) year on year, to $6,603 million, which included the same amountof the positive impact as on segment income, due to the adoption of the new standards.
Adjusted free cash flow decreased $255 million (32.4%) year on year, to $533 million (as disclosed by Sprint,
US GAAP). An increase in operating cash flows was more than offset by an increase in expenditures for the acquisitionof equipment for the next-generation network and the acquisition of rental devices.

9

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.

14

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

Results in yen
In yen terms, net sales increased ¥30,697 million (1.7%) year on year to ¥1,824,024 million, and segment income decreased ¥8,848 million (4.4%) to ¥193,328 million. Adjusted EBITDA increased ¥98,165 million (15.6%), to ¥727,196
million.
OPERATIONS
Cumulative Subscribers10(Thousands)

March 31, 2018

September 30, 2018

Change32,11932,296

177

26,813

26,8130Prepaid

8,989

9,019

30

Wholesale and affiliate

13,517

13,232

(285)

Total

54,62554,547(78)

Postpaid
Postpaid phone

Net Additions11 (Excluding Special Factors)(Thousands)

Three months ended September 30
2017
2018

ChangePostpaid
Postpaid phone

168

109

(59)

279

(34)

(313)

Prepaid

95

(14)

(109)

Wholesale and affiliate

115

(115)

(230)

Total

378

(20)

(398)

Postpaid phone subscriber net loss was a result of lower gross additions associated with the introduction of less promotional service pricing in July 2018 and higher churn as more customers rolled off promotional offers. Postpaid net additions included 81,000 subscribers who migrated from the prepaid subscriber base.
Churn Rate (Postpaid)
Three months ended September 30
2017

2018

ChangePostpaid phone churn rate

1.59%

1.73%

0.14 pp deterioration

Postpaid churn rate

1.72%

1.78%

0.06 pp deterioration

From the three-month period ended in March 31, 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.
11
Net additions exclude changes in the subscriber base resulting from such special factors as the acquisition of other companies by Sprint affiliatecompanies (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.
10

15

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

ARPU (Postpaid)
Three months ended September 30
2017
2018
Previous standards
New standards

ChangePostpaid phone ARPU

$52.34$50.16$(2.18)Postpaid ARPU

$46.00$43.99$(2.01)

ARPU decreased year on year due to the spread of promotional rate plans. Sequentially, ARPU increased as a result of
more customers rolling off promotional pricing. The adoption of the new standards had a $1.00 negative impact on
postpaid ARPU.
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/.

(c) Yahoo Japan Segment(Millions of yen)Six months ended September 30
2017
2018

ChangeChange %Net sales

421,364

453,640

32,276

7.7%

Segment income

91,241

77,729(13,512)(14.8%)

Depreciation and amortization

20,09026,194

6,104

30.4%

Other adjustments(4,929)(3,751)

1,178-

Adjusted EBITDA

106,402100,172(6,230)(5.9%)

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/.

16

SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 30, 2018(d) Arm Segment
1. Establishment of joint venture for business in China
 By the end of the second quarter, the majority of Arm’s existing contracts in China have been novatedto Arm China
 Quarterly technology licensing revenue improved from the first quarter, and is expected to be fully
restored to the normal level by the end of the fiscal year
2. Continued reinforcement of R&D capability
 The number of employees increased net 104 people (2%) from the previous fiscal year-end, despite thetransfer of 341 employees to Arm China
3. Announced Pelion IoT platform following acquisitions of Treasure Data and Stream Technologies(Millions of yen)Six months ended September 30
2018
2017

ChangeChange %Net sales

93,676

91,693(1,983)(2.1%)

Segment income(14,794)

141,242

156,036-

Depreciation and amortization
Gain relating to loss of control
over subsidiaries

30,28537,652

7,367

24.3%

-

(176,261)(176,261)-

Adjusted EBITDA

15,491

2,633(12,858)(83.0%)

Note: Depreciation and amortization includes amortization expenses of ¥30,208 million for the period and ¥26,796 million for thesame period of the previous fiscal year. These expenses are related to intangible assets recognized in the purchase price allocation at the time of the acquisition of Arm.

OVERVIEW
Arm’s operations are primarily the licensing of semiconductor intellectual property (IP), including the designs of energyefficient microprocessors and associated technologies. Since becoming part of the Company, Arm has been accelerating
investment in research and development by hiring more engineers. With the expansion of its engineering capability, Armintends to develop new technologies faster, with a focus on artificial intelligence (AI), computer vision, and augmented
reality. Arm is also investing in creating new revenue streams from adjacent markets, especially in the Internet of Things(IoT).
In August 2018, Arm announced the new Pelion IoT platform that enables enterprises to seamlessly and securely
connect and manage IoT devices and data at any scale. The Pelion platform combines Arm’s existing Mbed Cloudbusiness with two new acquisitions, Treasure Data, Inc. and Stream Technologies Limited. Together these technologies
will deliver IoT device management (secure and consistent IoT device provisioning, identity and access management
and updates), IoT connectivity management (through relationships with multiple global operators), and IoT data management (analysis of trusted data, from individual devices to enterprise-wide deployments).
Net sales of the segment comprise (i) licenses to Arm technology, (ii) royalties arising from the resulting sale oflicensees’ products based on Arm technology, and (iii) revenues from the sale of software tools.

FINANCIAL RESULTS
Net sales decreased ¥1,983 million (2.1%) year on year, to ¥91,693 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 in

17SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 30, 2018signing new contracts and consequently a lower-than-usual revenue received from Arm China. As a result, on a U.S.
dollar basis, technology licensing revenue decreased year on year.
As of the end of the second quarter, the majority of existing contracts with Chinese companies have been transferred
to Arm China. All major contract signings that were delayed during the period, for said reason, are still expected to beconcluded within the fiscal year. As expected, technology licensing revenue in the second quarter (including the revenue
received from Arm China) improved from the first quarter, and Arm expects quarterly licensing revenue to be fully
restored to the normal level by the end of 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 royalty 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)

Six months ended September 30, 2017
Q1
Q2
Total

Six months ended September 30, 2018
Q1
Q2
Total

Technology licensing

149

123

272

85

124

209

Technology royalties

250

271

521

261

285

546

Software and services

29

28

57

35

47

82

Total net sales

428

422

850

381

456

837

Segment income increased ¥156,036 million year on year, to ¥141,242 million. This was mainly attributable to therecognition of gain relating to the loss of control over subsidiaries of ¥176,261 million as other operating income, as aresult 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 ¥18,242
million year on year. Arm’s head count increased net 104 people (2%) from the previous fiscal year-end, despite theexclusion of 341 employees of Arm China from the head count upon June 26, 2018, the date on which the transaction
to establish the joint venture for the China business was completed. Arm will continue to increase investment in R&D
and steadily hire more engineers. Meanwhile, after two years of rapid growth, Arm expects that the investments in R&D
will increase at a slower pace for the next few quarters as Arm focuses on integrating new employees into the company
and improving productivity.
Adjusted EBITDA decreased ¥12,858 million (83.0%) year on year, to ¥2,633 million.

18

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

Establishment of Joint Venture for the China Business
On June 26, 2018, Arm sold 51% of its equity interest in its wholly owned Chinese subsidiary, Arm China, for$845 million to entities representing certain institutional investors and certain of Arm’s ecosystem partners in 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¥176,261 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
July 1 to September 30, 2018

Cumulative number of licenses signed
September 30, 2018

Classic (Arm7, Arm9, Arm11)-

499

Cortex-A

14

350

Cortex-R

5100

Cortex-M

13

506

Mali

3

172

Number of processor licenses signed

35

1,627

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

Arm signed 35 processor licenses during the second quarter, including six licenses for new technologies that Arm has
not yet announced, reflecting solid demand for Arm’s latest technology. Of the customers signing new licenses, fivewere new customers purchasing their very first Arm processor license. The customers who signed licenses with Arm inthe second quarter intend to use Arm technology in a very broad range of end markets, including automotive applications,sensors, servers, smartphones and surveillance cameras.

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 June 30, 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.

19

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

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

Jan 1 toMar 312018
Apr 1 toJun 305.1 billion

5.7 billion

5.8 billion

5.5 billion

5.6 billion

25%

17%

14%

17%

10%

Classic (Arm7, Arm9, Arm11)

18%

17%

16%

14%

10%

Cortex-A

20%

17%

19%

20%

21%

Cortex-R

9%

7%

7%

8%

8%

Cortex-M

53%

59%

58%

58%

61%

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

Arm’s licensees reported shipments of 5.6 billion Arm-based chips for the three-month period ended June 30, 2018.
This takes Arm-based chip shipments for 2018 to 11.1 billion, indicating that Arm is on track to achieve its goal of 100
billion Arm-based chips reported as shipped in the four years following the acquisition by the Company, from 2017 to2020 inclusive.
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.

20

SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 30, 2018(e) SoftBank Vision Fund and Delta Fund Segment
1. Segment income of ¥632.4 billion
SoftBank Vision Fund recorded realized gain of ¥146.7 billion on the sale of Flipkart shares and valuation gainof ¥503.8 billion due to an increase in fair values of NVIDIA, OYO, and other investment holdings
2. Investments totaling $28.1 billion to date at SoftBank Vision Fund amounted to fair value of $35.8 billion(excluding the sold investment)12
3. Total committed capital of $91.7 billion at SoftBank Vision Fund and $6.0 billion at Delta Fund(as of September 30, 2018)
OVERVIEWSoftBank 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 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 September 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 *2

6.0 *2

SoftBank Group Corp.: 28.1 *3Third-party investors: 63.6 *2
SVF GP (Jersey) Limited(The Company’s wholly owned overseas
subsidiary)Five years from November 20, 2017(in principle)
Twelve years from November 20, 2017(in principle)

SoftBank Group Corp.: 4.4
Third-party investors: 1.6 *2
SB Delta Fund GP (Jersey) Limited(The Company’s wholly owned overseas
subsidiary)Five years from November 20, 2017(in principle)
Twelve years from November 20, 2017(in principle)(Billions of U.S. dollars)

General partner

Investment period
Minimum Fund life

Notes:
1. On October 19, 2018, SoftBank Vision Fund completed an interim closing with additional committed capital of $5 billion. Thisbrought the total committed capital of the Fund to $96.7 billion. The additional committed capital is intended for the installmentof an incentive scheme for operations of SoftBank Vision Fund.
2. A portion of the capital committed by third-party investors in both SoftBank Vision Fund and Delta Fund has been committed inconsideration of the total capital committed for both separate Funds; hence, the total committed capital and remaining committed
capital for each separate Fund will change according to the status of contribution by third-party investors in each Fund.
3. The amount includes approximately $8.2 billion of an obligation to be satisfied by using Arm Limited shares.

12

Includes the amount of investments made by holding entities that are jointly held by SoftBank Vision Fund and the Company’s subsidiary21

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

FINANCIAL RESULTS(Millions of yen)Six months ended September 30
2017
2018

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

194,336
194,336(8,098)648,767
146,682
503,769
2,607(4,291)590
590(16,923)454,431
146,682309,433
2,607(4,291)590
590(8,825)233.8%
159.2%
109.0%

Segment income
Depreciation and amortization
Adjustments relating to investments in SoftBank Vision
Fund and Delta Fund
Unrealized loss (gain) on valuation of investments
Change in amount on valuation for the fiscal year
Transfer to realized gain and loss *1
Effect of foreign exchange translation

186,238-

632,43431

446,19631

239.6%-(194,336)(194,336)-(504,359)(647,307)
142,948
4,291(310,023)(452,971)
142,948
4,291

159.5%
233.1%-(8,098)132,397

140,495-

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 ± adjustments relating to investments in SoftBank
Vision Fund and Delta Fund (unrealized gain and loss on valuation of investments + effect of foreign exchange translation)
Note:
1. Cumulative gain and loss on valuation of Flipkart shares that was recorded before the second quarter

Segment income was ¥632,434 million (compared with ¥186,238 million in the same period of the previous fiscal
year), of which gain on investments at SoftBank Vision Fund was ¥648,767 million. This included realized gain on
investments of ¥146,682 million and unrealized gain on valuation of investments of ¥503,769 million.
Realized gain on investments at SoftBank Vision Fund was recognized following the completion of the sale of Flipkart
shares to WAL-MART INTERNATIONAL HOLDINGS, INC. The amount was recognized based on the sales value ofapproximately $4 billion, net of amount deposited in escrow account13, etc.
Unrealized gain on valuation of investments as (A) below, which was recorded for the first quarter following theagreement for the sale, was reclassified as realized gain as (B) below, following execution of the sale during the second
quarter.
(Quarterly breakdown of Flipkart-related gain and loss on investments at SoftBank Vision Fund)(Billions of U.S. dollars)

Six month ended September 30, 2018
Q1
Q2
Total
1.5
(1.5)
(A) 1.5(0.2)
1.3(B) (1.3)(1.3)(B) 1.3
1.3

Unrealized gain and loss on valuation of investments
Change in amount on valuation for the fiscal year
Transfer to realized gain and loss
Realized gain and loss on investments
13

Amount deposited for future indemnity claims

22SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 30, 2018

Unrealized gain on valuation of investments was recorded due to an increase in the fair values of NVIDIA, OYO, andother investments.
Adjusted EBITDA was ¥132,397 million (compared with negative ¥8,098 million in the same period of theprevious fiscal year).

Capital Deployment
As of September 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

23.8
5.1

7.2
3.7 *416.6
1.4

Non-recallable contribution*5
SoftBank Vision Fund

2.5

0.8

1.7

Remaining committed capital
SoftBank Vision Fund
Delta Fund

65.4
0.9 *6

20.1
0.7

45.3
0.2 *6

Notes:
1. A portion of the capital committed by third-party investors in both SoftBank Vision Fund and Delta Fund has been committed inconsideration of the total capital committed for both separate Funds: hence, the total committed capital and remaining committed
capital for each separate Fund will change according to the status of contribution by third-party investors 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 second quarter, SoftBank Vision Fund held 24.54% of Arm Limited shares at the endof the second 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. The applicable principal for the investment, which was returned to limited partners after the sale of Flipkart shares.
6. 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.

23

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

Investment Status
As of the end of the second quarter, the cumulative acquisition cost and fair value of investments of SoftBank Vision
Fund was $28.1 billion and $35.8 billion, respectively (excluding the sold investment). The cumulative acquisition cost
and the fair value of investment of Delta Fund was $5 billion each.

Investees of SoftBank Vision Fund (As of September 30, 2018)
SectorName (in alphabetical order)

Semiconductors
AI, big data, robotics, and VR◎

On-demand economy◎◎◎

E-commerce◎◎

Financial services◎

Enterprise, media, and advertising◎◎Life sciences

Smart cities
Clean tech

Arm Limited
NVIDIA Corporation
Brain Corporation
HealthKonnect Medical and Health Technology Management Company Limited (Ping An Medical and Healthcare)
Improbable Worlds Limited
Light Labs, Inc.
MapBox Inc.
Nauto, Inc.
OSIsoft LLC
Full Truck Alliance Co. Ltd
Loggi Technology International
OpenDoor Labs, Inc.
Oravel Stays Private Limited (OYO) (and its one affiliate)
Ping An Healthcare and Technology Company Limited
Wag Labs, Inc
WeWork Companies Inc. (and its three affiliates)
Auto1 Group GmbH
Brandless, Inc.
Coupang LLC
Fanatics Holdings, Inc.
One97 Communications Limited (PayTM）
OneConnect Financial Technology Co., Ltd.
Zhongan Online P&C Insurance Co., Ltd
Bytedance Ltd.
Cohesity, Inc.
Slack Technologies, Inc.
Urban Compass, Inc. (Compass)
Guardant Health, Inc. (and its one affiliate)
Roivant Sciences Ltd.
Vir Biotechnology, Inc.
Katerra Inc.
Plenty United Inc.
One other investment
Total 38 investments◎: New investments during the period
Note: SoftBank Vision Fund made some investments through investment holding entities that are subsidiaries, but not wholly owned
subsidiaries, of the Fund. Regardless of the ownership percentage of SoftBank Vision Fund, all investments made through the investment holding entities are calculated as investments made by SoftBank Vision Fund. Some of the subsidiaries of SoftBank Vision Fund

24

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

have investors other than the Fund. Of the total fair values of investments by SoftBank Vision Fund at the end of the second quarter,$1.4 billion belongs to those investors.

Investments Acquired from the Company
In addition to direct purchase, some investments of SoftBank Vision Fund are acquired from the sale by the Company,
but only if they are in accordance with the Fund’s investment eligibility criteria. There are two types of investments that
could be sold to the Fund: (A) Investments that were acquired by the Company on the premise of offering the investment
to SoftBank Vision Fund and that were in accordance with the investment eligibility criteria of the Fund at the time ofacquisition (“Bridge Investments”) and (B) other investments. Examples of (B) include investments that were madewithout the premise of offering the investment to the Fund at the time of acquisition, or, investments that were madewith the premise of offering the investment to the Fund but were not in accordance with the investment eligibility criteriaof the Fund at the time of acquisition and therefore require consent from the limited partners for selling to the Fund.
The Company recognizes that the transfer of such investments is agreed, at the timing when consent from investmentcommittee and other bodies (and certain limited partner if applicable) at SoftBank Vision Fund and approvals fromrelevant regulatory authorities are obtained. Sales of these investments are intended to be made at the fair value at thetime the Company offered the transfer, and this value will be the acquisition cost for SoftBank Vision Fund. These
investments are presented as investments at the Fund in the Company’s consolidated financial statements, after theCompany recognizes that the transfer is agreed.
SoftBank Vision Fund acquired investments in Coupang and OYO from the Company in the second quarter. These
investments fall into category (B) above. Please refer to the below table for details regarding Coupang and OYO, fromacquisition by the Company to the transfer into SoftBank Vision Fund.
(Billions of U.S. dollars)

Investees

Date of acquisitionby the Company

Coupang
OYO

May 2015
July 2015

Total

Acquisition costby the Company

Fair value at the endof the first quarter

Sale price by the Company to SVF(Acquisition cost by SVF)

1.0
0.1

0.7
0.2

0.7
0.2

1.1

0.9

0.9

(Note) SVF: SoftBank Vision FundOf the investments held by the Company, the transfer of PT Tokopedia to SoftBank Vision Fund, which falls into category (B) above, was agreed in October 2018. Uber, DiDi, Grab, and Ola, which also fall into category (B) above, are
not yet transferred to SoftBank Vision Fund as of September 30, 2018; however, the Company expects that the necessary
procedures will be made in the future to obtain applicable consent from limited partners of the Fund and regulatory
approvals for the transfer.

Investee of Delta Fund (As of September 30, 2018)
SectorName

On-demand economy

Xiaoju Kuaizhi Inc. (DiDi)

25

SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 30, 2018(f) Brightstar Segment(Millions of yen)

Net sales
Segment income

Six months ended September 30
2017
2018

ChangeChange %484,840

525,001

40,161

8.3%

(368)

(8,873)(8,505)-

Depreciation and amortization

3,014

2,559

(455)

(15.1%)

Adjusted EBITDA

2,646(6,314)(8,960)-(2) Overview of Financial Position
Status of investments
 Balance of investments from SoftBank Vision Fund of ¥3.7 trillion, up ¥917.7 billion from the previous
fiscal year-end- New investments were made- The fair values of NVIDIA, OYO and other investments increased Balance of investments outside the Fund (investment securities) of ¥3.1 trillion, up ¥451.7 billion fromthe previous fiscal year-end- New investments such as GM Cruise were made- The fair values of investments increased

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 “(2) 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

September 30, 2018

ChangeChange %Total assets

31,180,466

33,807,555

2,627,089

8.4%

Total liabilities

24,907,444

26,464,411

1,556,967

6.3%

Total equity

6,273,022

7,343,144

1,070,122

17.1%

Reference: Exchange rate at the end of the period used for translations
USD / JPY

¥106.24¥113.57

¥7.33

6.9%

GBP / JPY

¥148.84¥148.53¥(0.31)(0.2%)

26

SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 30, 2018(a) Current Assets(Millions of yen)March 31, 2018

September 30, 2018

ChangeCash and cash equivalents
Trade and other receivables
Other financial assets
Inventories
Other current assets

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

3,161,672
2,271,840
651,640
342,042
295,134(172,978)(42,513)132,196(19,999)(49,240)

Total current assets

6,874,862

6,722,328(152,534)

Primary components of the change
Components and balance

Changes from the previous fiscal year-end and main reasons

Cash and cash equivalents¥3,161,672 million

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

Other financial assets¥651,640 million¥132,196 million increase
Sprint increased time deposits and acquired commercial paper, for short-term
trading.

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

September 30, 2018

Change3,856,847
4,302,553

4,088,420
4,407,705

231,573
105,152

2,860,738

2,912,474

51,736

6,784,550

7,066,464

281,914-313,421313,421

Investments accounted for using the equity method

2,328,617

2,654,151

325,534

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

2,827,784

3,745,476

917,692

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

3,177,002
568,474
3,111,785
916,819
568,412212,574

880,418
37,274
451,670
240,427(79,102)(8,658)

Total non-current assets

24,305,604

27,085,227

2,779,623

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

27

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

Primary components of the change
Components and balance

Changes from the previous fiscal year-end and main reasons

Property, plant and equipment¥4,088,420 million¥231,573 million increase
At Sprint, construction in progress increased due to growth in capital expenditures, and leased mobile devices for customers also increased.

Intangible assets¥7,066,464 million¥281,914 million increase
FCC licenses increased due to a weaker yen against the U.S. dollar.

Costs to obtain contracts¥313,421 million

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

Investments accounted forusing the equity method¥2,654,151 million¥325,534 million increase
Alibaba’s consolidated carrying amount increased due to the recording of income on equity method investments. Also, Arm China, which was a subsidiaryof Arm, became an associate accounted for using the equity method, whereby aconsolidated carrying amount of ¥87,655 million was newly recorded.

Investments from SoftBank
Vision Fund and Delta Fund
accounted for using FVTPL¥3,745,476 million

SoftBank Vision Fund: ¥880,418 million increase
New investments were made. In addition, the fair values of investments increased. On the other hand, the Fund sold Flipkart shares.

Investment securities¥3,111,785 million¥451,670 million increase
This includes investments outside SoftBank Vision Fund and Delta Fund. New
investments were made by the Company in companies such as GM Cruise Holdings, LLC (“GM Cruise”), a developer of autonomous driving technology. Also,
fair values of the Company’s investments such as Uber increased. On the other
hand, investments in Coupang and OYO were sold to SoftBank Vision Fund.
The investments in Uber, DiDi, Grab, and Ola held by the Company are not yet
transferred to SoftBank Vision Fund as of September 30, 2018. The Company
expects that the necessary procedures will be made in the future to obtain applicable consent from limited partners of the Fund and regulatory approvals for thetransfer.

28

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

March 31, 2018

September 30, 2018

Change3,217,405

4,972,455

1,755,050

1,485,851

1,903,905

418,054

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

1,052,700
79,597
698,608
73,000903,891

281,425(135,150)

Current portion of long-term borrowings
Current portion of lease obligations
OthersSprint393,916
393,282
15,857364,245492,836
399,987
11,068606,973

98,9206,705(4,789)242,728

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

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

175,098
422,101
9,774
635,889

10,632
231,705391

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

83,952
313,143
167,159

635,889
921,797(83,952)
322,746754,638

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

167,159
684,091

741,681180,116
715,193741,681
12,957
31,102

Third-party interests in SoftBank Vision Fund andDelta Fund

298,779
27,000100,836

238,794

40,713

2,281(38,432)

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
65,709658,961610
1,671
1,813,230
721,672
2,618
166,939
45,156703,645(38,583)
151(2,780)625,431972
18,960(20,553)

Total current liabilities

6,728,755

9,143,189

2,414,434

29

44,684

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

Primary components of the change
Components and balance

Changes from the previous fiscal year-end and main reasonsInterest-bearing debt
¥4,972,455 million
SoftBank Group Corp.
¥1,903,905 million¥418,054 million increase· Current portion of corporate bonds increased ¥298,779 million, after transferfrom non-current liabilities of corporate bonds that mature within a year. On theother hand, certain domestic straight corporate bonds were redeemed upon maturity.
· Short-term borrowings increased ¥281,425 million due to new borrowings fromfinancial institutions with the aim of enhancing cash on hand, among others.

Sprint¥606,973 million¥242,728 million increase
Current portion of corporate bonds increased due to transfer from non-current liabilities of corporate bonds that mature within a year.

SoftBank Vision Fund
¥635,889 million¥238,794 million increase
SoftBank Vision Fund made borrowings by way of crystallizing a portion of its investment securities.

Others¥921,797 million¥754,638 million increase
As the settlement date of a variable prepaid forward contract for Alibaba shares became due within a year, the related financial liabilities were transferred from noncurrent liabilities.

Derivative financial liabilities¥721,672 million¥625,431 million increase
As the settlement date of a variable prepaid forward contract for Alibaba shares became due within a year, the derivative liabilities related to the embedded collartransaction were transferred from non-current liabilities.

30

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

September 30, 2018

Change13,824,783

13,015,302(809,481)

7,732,330

6,207,638(1,524,692)

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

1,964,632
4,243,006
2,343,702(1,250,827)(273,865)
1,447,267

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

1,650,934
689,968
2,800
4,009,410

1,433,420
19,106(5,259)29,705Long-term borrowings
Corporate bonds
OthersSoftBank Vision Fund

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

1,449,819
2,540,993
18,598-103,243(71,185)(2,353)(101,312)

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

454,552(101,312)(660,449)

Interest-bearing debt
SoftBank Group Corp.

14

Long-term borrowings
Corporate bonds
SoftBank Corp.

14

14

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

454,552(688,332)
27,883

1,803,966

2,175,476

371,510

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
303,9152,020,422
155,054
89,627
72,623
101,644
151,339
1,449,397
265,814360,757
10,753(775,775)
10,251
1,158
19,200363,771(38,101)

Total non-current liabilities

18,178,689

17,321,222(857,467)

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.

31

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

Primary components of the change
Components and balance

Changes from the previous fiscal year-end and main reasonsInterest-bearing debt
¥13,015,302 million
SoftBank Group Corp.
¥6,207,638 million¥1,524,692 million decrease· Long-term borrowings decreased ¥1,250,827 million.
SoftBank Group Corp. repaid a portion of its senior loan before maturity in August 2018 by using ¥1.6 trillion, which was received from SoftBank Corp. as repayment of its borrowings from the company, as part of the preparations to list
SoftBank Corp. shares. On the other hand, a wholly owned subsidiary of theCompany made borrowings by using Alibaba shares.
· Corporate bonds decreased ¥273,865 million.
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 became due within a year. On the other hand,domestic straight corporate bonds of ¥450 billion and foreign currency-denominated senior notes totaling ¥272.7 billion were issued.

SoftBank Corp.
¥2,343,702 million¥1,447,267 million increase
SoftBank Corp. made new borrowings of ¥1.6 trillion through a senior loan as partof its preparations for listing.

Others¥454,552 million¥660,449 million decrease
Financial liabilities related to the variable prepaid forward contract for Alibaba
shares were transferred to current liabilities.

Third-party interests in
SoftBank Vision Fund andDelta Fund
¥2,175,476 million

SoftBank Vision Fund: ¥360,757 million increase

Derivative financial liabilities¥89,627 million¥775,775 million decrease
Derivative liabilities relating to the embedded collar transaction in the variable prepaid forward contract for Alibaba shares were transferred to current liabilities.

Deferred tax liabilities¥1,449,397 million¥363,771 million increase
Deferred tax liabilities related to Sprint’s FCC licenses increased due to a weaker
yen against the U.S. dollar.

See “6. 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 ofchanges.

32SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 30, 2018(e) Equity(Millions of yen)March 31, 2018

September 30, 2018

ChangeCommon stock

238,772

238,772-

Capital surplus

256,768

212,157(44,611)

Other equity instruments

496,876

496,876-

Retained earnings

3,940,259

5,041,182

1,100,923

Treasury stock(66,458)(62,896)

3,562

Accumulated other comprehensive income

317,959

418,944

100,985

Available-for-sale financial assets

63,700-(63,700)

Equity financial assets at FVTOCI

-

8,627

8,627

Debt financial assets at FVTOCI

-

(97)

(97)

(55,286)(79,334)(24,048)309,545489,748

180,203

Total equity attributable to owners of the parent

5,184,176

6,345,035

1,160,859

Non-controlling interests

1,088,846

998,109(90,737)

Total equity

6,273,022

7,343,144

1,070,122

16.6%

18.8%

2.2 ppCash flow hedges
Exchange differences on translating
foreign operations

Ratio of equity attributable to owners of the parent

Primary components of the change
Components and balance

Changes from the previous fiscal year-end and main reasons

Capital surplus¥212,157 million¥44,611 million decrease
As a result of SoftBank Corp.’s acquisition of Yahoo Japan Corporation
shares and the acquisition by Yahoo Japan Corporation of its own shares, theshareholding ratio of Yahoo Japan Corporation shares held by the Company
increased from 42.95% to 48.17%, depressing capital surplus by ¥56,632 million.

Retained earnings¥5,041,182 million¥1,100,923 million increase
Net income attributable to owners of the parent of ¥840,103 million was recorded. Further, the cumulative impact of adopting the new standards of¥300,615 million was recorded on April 1, 2018.

Accumulated other comprehensive income¥418,944 million¥100,985 million increase
Exchange differences on translating foreign operations increased due to a
weaker yen against the U.S. dollar. On the other hand, the cumulative impactof adopting the new standards of ¥57,828 million was reclassified as retained
earnings on April 1, 2018.

33

SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 30, 2018(3) Overview of Cash Flows
1. Progress on investments at SoftBank Vision Fund
 Contributions from third-party investors of ¥393.4 billion → Payments for acquisition of investments of¥362.3 billion
 Proceeds from sale of investments of ¥421.9 billion: sale of Flipkart shares Distribution/repayment to third-party investors of ¥391.1 billion: distributed proceeds from sale of Flipkart
shares, among others, to third-party investors
2. Dissolution of debtor-creditor relationship between SoftBank Group Corp. and SoftBank Corp. as part ofpreparations to list SoftBank Corp. shares SoftBank Corp. implemented borrowings through senior loan of ¥1.6 trillion and repaid the same amount borrowed from SoftBank Group Corp.
 SoftBank Group Corp. used the entire ¥1.6 trillion to partially repay its senior loan before maturity(Millions of yen)Six months ended September 30
2017
2018

ChangeCash flows from operating activities

748,283

782,775

34,492

Cash flows from investing activities(1,676,671)(1,118,068)

558,603

Cash flows from financing activities(2,191,780)

62,945(2,128,835)(a) Cash Flows from Operating Activities
Cash flows from operating activities increased ¥34,492 million year on year. Income taxes paid decreased ¥76,001
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. Further, income taxes refund increased. On the other hand,interest paid increased due to higher level of borrowings.
(b) Cash Flows from Investing Activities
Primary components for the period
Components

Primary details

Outlays for purchase of property, plant andequipment and intangible assets¥(700,953) million

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

Payments for acquisition of investments¥(408,791) million

A wholly owned subsidiary of the Company newly invested in GM
Cruise, among others. In addition, Japan Net Bank Ltd. acquired securities held for investment.

Payments for acquisitions of investment by
SoftBank Vision Fund and Delta Fund¥(362,331) million

SoftBank Vision Fund made new investments.

Proceeds from sale of investments by SoftBank Vision Fund and Delta Fund
¥421,921 million

SoftBank Vision Fund sold Flipkart shares.

Increase from loss of control over subsidiaries¥83,653 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 related to the sale of equity interest in Arm China, whichbecame an associate accounted for using the equity method following the establishment of a joint venture for Arm's China business.

34SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 30, 2018

Components

Primary details

Payments for acquisition of marketablesecurities for short-term trading¥(225,297) million
Proceeds from sales/redemption of marketable securities for short-term trading¥195,897 million

These payment and proceeds are associated with short-term trading
through the use of commercial paper, among others, at Sprint.

Payments into time deposits¥(454,232) million
Proceeds from withdrawal of time deposits¥444,742 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 period
Component
Proceeds from interest-bearing debt
¥4,507,706 million
Proceeds from long-term borrowings¥3,501,376 million
SoftBank Corp.
¥1,859,485 million

15

Primary details

As part of preparations for listing, SoftBank Corp. implemented borrowings of ¥1.6 trillion through a senior loan. Additionally, SoftBank
Corp. borrowed through securitization of installment receivables.
The proceeds from the senior loan were used to repay its borrowings
from SoftBank Group Corp., which was eliminated as an intercompany transaction.

SoftBank Group Corp.
¥914,384 million

SoftBank Group Corp. procured funds to enhance its cash on hand.
Further, a wholly owned subsidiary of the Company made borrowings15 by using Alibaba shares.

Sprint¥324,473 million

Sprint implemented borrowings through the securitization of receivables.

SoftBank Vision Fund
¥253,516 million

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

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¥283,586 million

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

The borrowings are not guaranteed by SoftBank Group Corp., hence non-recourse to the company.

35

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

Component

Primary details

Repayment of interest-bearing debt¥(4,110,627) million
Repayment of long-term borrowings¥(3,078,687) million
SoftBank Group Corp.
¥(2,109,719) million

SoftBank Group Corp. used all of the ¥1.6 trillion repayment received from SoftBank Corp. to partially repay its senior loan before maturity. Further, the company repaid borrowings made byusing its commitment line.

Sprint¥(318,660) million

Sprint repaid borrowings that were made by securitizing receivables and by using its spectrum holdings.

SoftBank Corp.
¥(310,050) million

SoftBank Corp. repaid borrowings made through the securitization of installment receivables.

SoftBank Vision Fund¥(158,354) million

SoftBank Vision Fund repaid borrowings made by crystallizing
its investment securities.

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¥(263,149) million

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

Contribution to SoftBank Vision Fund andDelta Fund from third-party investors¥394,194 million· SoftBank Vision Fund received cash contributions from thirdparty investors based on capital calls.
· Delta Fund received cash contributions from third-party investors based on capital calls.

Distribution/repayment from SoftBank Vision
Fund and Delta Fund to third-party investors¥(394,207) million· SoftBank Vision Fund made distributions of ¥195,180 million
to third-party investors: performance-based distributions of¥141,400 million and fixed distributions of ¥53,780 million.
These were made by using the proceeds received from the saleof Flipkart shares, as well as partial monetization of the investment securities it possesses.
· SoftBank Vision Fund repaid the principal for investments totaling ¥195,897 million to third-party investors mainly following the sale of Flipkart shares.
· Delta Fund made fixed distributions based on the aggregatedamount of investment.

Payments for purchase of subsidiaries’ interests from non-controlling interests¥(228,641) million

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

(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.

36

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

Delta FundSB Delta Fund (Jersey) L.P.

SBIA

SB Investment Advisers (UK) Limited

Brightstar

Brightstar Global Group Inc.

Fortress

Fortress Investment Group LLC

Alibaba

Alibaba Group Holding Limited

37

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

38

As of
September 30, 2018

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

3,161,672
2,271,840
651,640

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

4,088,420
4,407,705
7,066,464
313,4212,654,151

2,827,784

3,745,476

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

3,111,785
916,819
568,412212,574
27,085,227
33,807,555

342,042
295,134
6,722,328

SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 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 of
September 30, 2018

3,217,405
684,091

4,972,455
715,193

40,7132,281

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

1,813,230
721,672
2,618
166,939
45,156703,645
9,143,189

13,824,783

13,015,302

1,803,966

2,175,476

Total liabilities

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

89,627
72,623
101,644
151,339
1,449,397
265,814
17,321,222
26,464,411

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
212,157
496,876
5,041,182(62,896)
418,944
6,345,035
998,1097,343,144
33,807,555

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

39SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 30, 2018

(2) Condensed Interim Consolidated Statement of Income and Condensed Interim Consolidated Statement ofComprehensive Income
For the six-month period ended September 30
Condensed Interim Consolidated Statement of Income(Millions of yen)Six-month period ended
September 30, 2017

Six-month period ended
September 30, 2018

Net sales
Cost of sales
Gross profit

4,411,135(2,554,182)
1,856,953

4,653,853(2,722,539)
1,931,314

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
Derivative gain (loss)
Gain from financial instruments at FVTPL
Change in third-party interests in SoftBank Vision Fundand Delta Fund
Gain from remeasurement relating to discontinuing the useof the equity method
Other non-operating income
Income before income tax
Income taxes
Net income(1,187,778)
19,426(1,288,197)
176,261(31,096)688,601

788,282

186,238

632,434

874,839(243,458)
108,290
10,942(504,681)
10,2071,420,716(322,342)
110,338
29,942
42,407
203,866(77,157)(199,757)-

89,20940,039219,021(75,279)
143,742

27,7101,402,089(531,419)
870,670

102,622
41,120143,742

840,10330,567
870,670

88.29
84.97

756.22752.26

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

Earnings per share
Basic earnings per share (yen)Diluted earnings per share (yen)40SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 30, 2018

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

Six-month period ended
September 30, 2018

143,742

870,670-(1,037)-(1,037)37,055(11,923)(689)(24,438)

336,176

211,896

9,541

2,682

370,849

189,451

370,849
514,591

188,414
1,059,084

473,011
41,580514,591

999,177
59,907
1,059,084

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

41SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 30, 2018

For the three-month period ended September 30
Condensed Interim Consolidated Statement of Income(Millions of yen)Three-month period ended Three-month period ended
September 30, 2017
September 30, 2018
Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Gain relating to loss of control over subsidiaries
Other operating loss
Operating income (excluding income from SoftBank
Vision Fund and Delta Fund)
Operating income from SoftBank Vision Fundand Delta Fund
Operating income
Finance cost
Income on equity method investments
Foreign exchange gain
Derivative gain (loss)
Gain (loss) from financial instruments at FVTPL
Change in third-party interests in SoftBank Vision Fundand Delta Fund
Gain from remeasurement relating to discontinuing the useof the equity method
Other non-operating income
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)42

2,225,076(1,299,059)
926,017

2,381,070(1,405,879)
975,191(598,417)(13,043)(660,212)
14,914(16,660)

314,557

313,233

81,009392,490395,566(122,588)
106,656
12,738(247,622)(14,406)

705,723(173,875)
72,63317,01796,487
109,324(33,568)(126,868)-

89,20944,677
141,453(28,251)
113,20240,135
829,785(287,235)
542,550

97,101
16,101
113,202526,416
16,134
542,550

83.22
80.83

474.66471.89

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

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

Three-month period ended
September 30, 2018

113,202542,550-(1,785)-(1,785)

12,733(30,057)(724)(3,838)

182,229

194,875

2,915

16,478167,820

206,791

167,820
281,022205,006
747,556

264,757
16,265
281,022719,561
27,995
747,556

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

43SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 30, 2018

(3) Condensed Interim Consolidated Statement of Changes in Equity
For the six-month period ended September 30, 2017
(Millions of yen)
Equity attributable to owners of the parent

As of April 1, 2017
Comprehensive income
Net income
Other comprehensive
incomeTotal comprehensive
incomeTransactions withowners and othertransactions
Issuance of other equity
instruments
Cash dividends
Purchase and disposalof treasury stock
Changes in interestsin subsidiaries
Changes in associates’interests in theirsubsidiaries
Changes in interests inassociates’ capitalsurplus
Share-based paymenttransactions
Other
Total transactions
with owners andother transactions
As of September 30, 2017

As of April 1, 2017
Comprehensive income
Net income
Other comprehensive
incomeTotal comprehensive
incomeTransactions withowners and othertransactions
Issuance of other equity
instruments
Cash dividends
Purchase and disposalof treasury stock
Changes in interestsin subsidiaries
Changes in associates’interests in theirsubsidiaries
Changes in interests inassociates’ capitalsurplus
Share-based paymenttransactions
Other
Total transactions
with owners andother transactions
As of September 30, 2017

Commonstock
238,772

Capitalsurplus245,706

Other equity
instruments-

Retainedearnings
2,958,355

Treasurystock(67,727)---

102,622

-

-

-

-

-

-

Accumulated
othercomprehensive
income211,246

Total
3,586,352--

102,622--370,389

370,389-

102,622-370,389

473,011-496,876---

496,876---(23,964)--(23,964)

-

-

-

(726)

1,294

-

568

-

(4,164)

-

-

-

-

(4,164)-(3,256)

-

-

-

-

(3,256)-38,058----38,058

-

2,683

-

-

-

-

2,683

-

-

-

-

-

-

-

-

33,321496,876(24,690)

1,294-

506,801

238,772

279,027

496,876

3,036,287(66,433)

581,635

4,566,164

Noncontrollinginterests
883,378

Total equity
4,469,730

41,120143,742460

370,849

41,580514,591-

496,876(29,963)(53,927)

-

568

6,372

2,208

-

(3,256)-38,058

3,087

5,770

(2,245)(2,245)(22,749)

484,052

902,2095,468,373

44

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

For the six-month period ended September 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
Distribution to owners of other
equity instruments
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 September 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-

840,103--

840,103

-

-

-

-

159,074

159,074---

840,103-

159,074

999,177---(23,969)--(23,969)---(16,087)--(16,087)

-

-

-

261

-

(261)

-

-

902

-

-

3,562

-

4,464

-

(55,475)

-

-

-

-

(55,475)

-

4,042

-

-

-

-

4,042

-

2,133

-

-

-

-

2,133

-

3,103
684

-

-

-

-

3,103
684

-

(44,611)-(39,795)

3,562

(261)

(81,105)

238,772

212,157

496,876

5,041,182(62,896)

418,944

6,345,035

45

SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 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
Distribution to owners of other
equity instruments
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 September 30, 2018

Noncontrollinginterests
1,088,846

Total equity
6,273,022

21,300264,087

1,110,146

6,537,109

30,567

870,670

29,340188,41459,907

1,059,084(30,431)(54,400)-(16,087)

-

-

-

4,464

(139,281)(194,756)

-

4,042

-

2,133

(2,040)
(192)

1,063
492

(171,944)(253,049)

998,1097,343,144

Note:* In accordance with the adoption of IFRS 9 “Financial Instruments” and IFRS 15 “Revenue from Contracts with Customers,”
cumulative effects of retrospective adjustments are recognized as adjustments to the opening balance of retained earnings andaccumulated other comprehensive income. The details are described in “(2) Effect of adopting new standards and interpretations”
under “1. Significant accounting policies.”

46

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

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

Six-month period ended
September 30, 2018

143,742
750,507-

870,670824,516(176,261)(194,336)(649,357)

243,458

322,342

Income on equity method investments(108,290)(110,338)

Derivative loss (gain)

504,681(42,407)

Gain from financial instruments at FVTPL
Change in third-party interests in SoftBank Vision Fundand Delta Fund
Gain from remeasurement relating to discontinuing theuse of the equity method(10,207)(203,866)

77,157

199,757-(89,209)

Foreign exchange gain and other non-operating income(50,981)(57,652)

Income taxes
Decrease (increase) in trade and other receivables
Increase in inventories

75,27910,373(183,855)

531,419(2,431)(186,577)

Increase in trade and other payables

35,851

39,488

Other(65,721)(18,265)

1,227,658
14,679(239,445)(342,967)
88,358748,283

1,251,829
22,629(322,087)(266,966)
97,370782,775(517,705)(700,953)(197,352)
14,409(408,791)
173,344(1,253,341)(362,331)-

421,921(4,321)-(64,028)
83,653(40,770)(190,660)(116,552)(225,297)

332,875

195,897(103,227)
331,070(121,757)(1,676,671)(454,232)
444,742(31,333)(1,118,068)

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
Proceeds from sales/redemption of investments
Payments for acquisition of investments by SoftBank
Vision Fund and Delta Fund
Proceeds from sales of an investment by SoftBank Vision
Fund and Delta FundPayments for acquisition of control over subsidiaries
Proceeds from loss of control over subsidiaries, net
Payments for loan receivables
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

47

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

(Millions of yen)Six-month period ended
September 30, 2017

Six-month period ended
September 30, 2018

449,851

26,044

Proceeds from interest-bearing debt

1,529,137

4,507,706

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
Purchase of shares of subsidiaries from non-controllinginterests
Proceeds from issuance of other equity instruments
Distribution to owners of other equity instruments
Cash dividends paid

(1,286,867)(4,110,627)

1,067,703

394,194-(394,207)(478)(228,641)

496,876(23,981)(16,087)(23,949)

Cash dividends paid to non-controlling interests(29,529)(29,973)

Other(10,932)(61,515)

2,191,780

62,945

16,244

99,370

Increase (decrease) in cash and cash equivalents

1,279,636(172,978)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

3,462,738

3,161,672

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

Net cash provided by financing activities
Effect of exchange rate changes on cash and cash equivalents

48

SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 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 six-month period ended September 30, 2018 are calculated
based on the estimated effective tax rate and certain defined benefit liabilities for the six-month period ended
September 30, 2018 are calculated by predictive computation based on a reasonable estimation in accordance withthe results of an actuarial calculation as of March 31, 2018.
The details of significant accounting policies for SoftBank Vision Fund and Delta Fund are described in “(3)Significant accounting policies for SoftBank Vision Fund and Delta Fund segment.”(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

49

SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 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) 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 six-month period ended September 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

Inventories
1

Costs to obtain contracts2--

304,778

304,778

647,51431(54,466)

593,079

221,232-(21,999)

199,233

Trade and other payables1

1,816,010-(62,238)

1,753,772

Other current liabilities1

658,961-

46,900705,861

1,085,626-

41,387

1,127,013

Deferred tax assets
1

Other non-current assets

LIABILITIES AND EQUITY

Deferred tax liabilities
1

Other non-current liabilities

303,915-(58,029)

245,886

Retained earnings1,2,5
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

50

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

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

Before adoption

IFRS 15
Adjustment
amountAfter adoption

ASSETS
Trade and other receivables

2,262,773

70

8,997

2,271,840

344,592-(2,550)342,042

Other current assets

263,428(140)

31,846295,134

Intangible assets

7,082,755-(16,291)

7,066,464--

313,421313,421

Deferred tax assets

619,21931(50,838)

568,412

Other non-current assets1

216,150-(3,576)

212,574

1,881,558-(68,328)

1,813,230

Other current liabilities

655,476-

48,169703,645

Deferred tax liabilities

1,392,588-

56,8091,449,397

334,123-(68,309)265,814

4,655,475

105,184

280,523

5,041,182

519,921(105,198)

4,221

418,944969,541(22)

28,590998,109

Inventories
1

Costs to obtain contracts2

LIABILITIES AND EQUITY
Trade and other payables1
1

Other non-current liabilities1
1,2,5

Retained earnings
Accumulated other comprehensive
income5Non-controlling interests(Condensed Interim Consolidated Statements of Income)Six-month period ended September 30, 2018
(Millions of yen)
IFRS 9Adjustment
amount

Before adoption
1

IFRS 15
Adjustment
amountAfter adoption

Net sales

4,614,440-

39,413

4,653,853

Cost of sales(2,708,930)-(13,609)(2,722,539)

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

1,905,510-

25,804

1,931,314(1,309,194)(11)

21,008(1,288,197)

603,475

28,959-632,434

Operating income

1,344,741

28,95447,021

1,420,716

112,041(1,703)-110,338

167,359

36,507-

203,866

Income on equity method investments
5Gain from financial instruments at FVTPL
3,5

Other non-operating income

40,304(12,594)-

27,710

Income taxes(523,764)

1,005(8,660)(531,419)

Net income

780,427

52,16938,074

870,670

Basic earnings per share (yen)678.36

48.08

29.78

756.22

Diluted earnings per share (yen)674.54

48.00

29.72

752.2651

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

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

Before adoption
Net income

IFRS 15
Adjustment
amountAfter adoption

780,427

52,16938,074

870,670-(1,037)-(1,037)53,211(53,211)

-

-

-

(689)

-

(689)

210,819-

1,077

211,896

1,459

1,223

-

2,682

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

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

52

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

53

SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 30, 2018(3) Significant accounting policies for SoftBank Vision Fund and Delta Fund segment
For Softbank Vision Fund and Delta Fund, the Company applies the same accounting policies as follows.
a. Consolidation of the SoftBank Vision Fund and Delta Fund segment by the Company
SoftBank Vision Fund and Delta Fund are limited Partnerships established by their respective General Partners which
are wholly-owned subsidiaries of the Company, and by their form of organization, qualify as structured entities.
SoftBank Vision Fund and Delta Fund are consolidated by the Company for the following reasons.
The various entities comprising SoftBank Vision Fund and Delta Fund make investment decisions through theirrespective Investment Committee, which were established as committees of SBIA. SBIA is an advisory company andis a wholly-owned subsidiary of the Company. As such, the Company has power as defined under IFRS 10“Consolidated Financial Statements” over SoftBank Vision Fund and Delta Fund. Furthermore, SBIA receives
performance fees and the Company receives distributions attributable to limited Partners based on the investment
performance as returns from the Funds. The Company has the ability to affect those returns through its power over theFunds, and therefore, the Company is deemed to have control as stipulated in IFRS 10 over each Fund.
Inter-company transactions such as management fees and performance fees to SBIA paid or to be paid from SoftBank
Vision Fund and Delta Fund are eliminated in consolidation.
b. Portfolio company investments made by SoftBank Vision Fund and Delta Fund(a) Investments in subsidiaries
Of the portfolio company investments made by SoftBank Vision Fund, the portfolio companies that the Company isdeemed to control under IFRS 10 are subsidiaries of the Company. Accordingly, their results of operations, assets
and liabilities are included in the Company’s 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 that are joint ventures of the SoftBank Vision Fund when, as defined
under IFRS 11 “Joint Arrangements,” the SoftBank Vision Fund has joint control with other investors undercontractual arrangements and the investors have rights to the net assets of the arrangement.
The investments in associates and joint ventures of the Company made by SoftBank Vision Fund are accounted for
as financial assets at FVTPL in accordance with paragraph 18 of IAS 28, and presented as “Investments from
SoftBank Vision Fund and Delta Fund accounted for using FVTPL” in the 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
arising 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.”54

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

d. Bridge Investments
Investments acquired by SoftBank Group Corp. or its subsidiaries with the premise of offering to SoftBank Vision
Fund and Delta Fund and were made in accordance with the investment eligibility criteria of the SoftBank Vision
Fund at the time of acquisition (“Bridge Investments”) are accounted for as financial assets at FVTPL. The Company
recognizes the decision for the transfer of such investments after the Company obtains consent from the investmentcommittee and other bodies (and certain limited partners, if applicable) at SoftBank Vision Fund and approvals fromrelevant regulatory authorities. The Company changes the presentation of Bridge Investments in its consolidated
financial statements in the annual period in which the Company recognizes the decision to transfer such investments(hereafter phrased as “the transfer is agreed”) as further described below.
(a) Investments made in the six-month period ended September 30, 2018
If the transfer is agreed in the six-month period ended September 30, 2018, the Company presents items relevant tothose investments as if SoftBank Vision Fund and Delta Fund had made those investments from the date when the
Company initially made the investments. Those items would be presented as “Investments from SoftBank Vision
Fund and Delta Fund accounted for using FVTPL” in the condensed interim consolidated statement of financial
position, “Operating income from SoftBank Vision Fund and Delta Fund” in the condensed interim consolidated
statement of income, and “Payments for acquisition of investments by SoftBank Vision Fund and Delta Fund” undercash flows from investing activities in the condensed interim consolidated statement of cash flows.
On the other hand, if the investments have not yet been agreed as of September 30, 2018, the Company presents
items relevant to those investments as “Investment securities” in the condensed interim consolidated statement offinancial position, “Gain from financial instruments at FVTPL” in the condensed interim consolidated statement ofincome, 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
i. Investments for which the transfer is agreed in the six-month period ended September 30, 2018
If the transfer is agreed in the six-month period ended September 30, 2018, the Company presents the carrying
amounts of those investments as if the investments had been agreed to be transferred at April 1, 2018. Thoseinvestments would be presented as “Investments from SoftBank Vision Fund and Delta Fund accounted for using
FVTPL” in the condensed interim consolidated statement of financial position as of September 30, 2018 and withthe respective gain and loss on those investments as “Operating income from SoftBank Vision Fund and Delta Fund”
in the condensed interim consolidated statement of income for the six-month period ended September 30, 2018. For
the periods prior to April 1, 2018, the following presentation would be applied. 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 six-month period ended September 30, 2017, andpayments for acquisition of investments as “Payments for acquisition of investments” under cash flows frominvesting activities in the condensed interim consolidated statement of cash flows for the six-month period ended 30,
2017.
ii. Investments for which the transfer is agreed on or prior to March 31, 2018
If the transfer is agreed on or prior to March 31, 2018, the Company presents the carrying amounts of thoseinvestments as if the investments had been agreed to be transferred at April 1, 2017. Those investments would bepresented as “Investments from SoftBank Vision Fund and Delta Fund accounted for using FVTPL” in thecondensed interim consolidated statement of financial position as of March 31, 2018 and the respective gain andloss on those investments as “Operating income from SoftBank Vision Fund and Delta Fund” in the condensed
interim consolidated statement of income for the six-month period ended September 30, 2018, and payments foracquisition of investments 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 for thesix-month period ended September 30, 2017.
e. Investments that are not Bridge Investments and for which the transfer is agreed
For investments that are not Bridge Investments, when the transfer is agreed, the Company continues to apply thesame accounting treatment followed in the periods prior to the agreement. They are accounted for as financial assets at
FVTPL for the six-month period ended September 30, 2018.

55

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

If the transfer is agreed in the six-month period ended September 30, 2018, the Company presents the carrying
amounts of those investments as of September 30, 2018 as if the investments had been made by SoftBank Vision
Fund on the date the transfer was agreed. Those investments would be presented as “Investments from SoftBank
Vision Fund and Delta Fund accounted for using FVTPL” in the condensed interim consolidated statement offinancial position as of September 30, 2018, the difference between the carrying amount and the transferred amountand the respective gain and loss on those investments arising from the difference between the transferred amount andfair value as of September 30, 2018 as “Gain and loss from financial instruments at FVTPL” and “Operating income
from SoftBank Vision Fund and Delta Fund” in the condensed interim consolidated statement of income for thesix-month period ended September 30, 2018, respectively, and payments for acquisition of such investments as“Payments for acquisition of investments” under cash flows from investing activities in the condensed interim
consolidated statement of cash flows for the six-month period ended 30, 2018.
f. Contribution from limited Partners to SoftBank Vision Fund and Delta Fund
SoftBank Vision Fund and Delta Fund issue capital calls from their respective limited partners (“Capital Call”).
(a) Contribution from Limited Partners other than the Company
The interests attributable to limited partners of SoftBank Vision Fund and Delta Fund other than the Company(“Third-Party Investors”) are classified as financial liabilities, “Third-party interests in SoftBank Vision Fund andDelta Fund” in the condensed interim consolidated statement of financial position, due to the predetermined finite
life (at least 12 years from November 20, 2017) and contractual payment provision to each of the limited partners at
the end of the finite life within SoftBank Vision Fund and Delta Fund’s limited partnership agreements. The
liabilities are classified as “financial liabilities measured at amortized cost” upon initial recognition. The carrying
amounts attributable to Third-Party Investors represent the amounts that would be distributed in accordance with thelimited 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
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.

56

SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 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 theinvestments that transfer is agreed (gain and loss on investments at SoftBank Vision Fund and Delta Fund), andoperating expenses and other expenses incurred in SoftBank Vision Fund 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 six-month period ended September 30, 2017 and the three-month period ended
September 30, 2017 is presented based on the reportable segments after the change.
(2) Net sales and income of reportable segments
Income of reportable segments is defined as “Operating income.” Intersegment transaction prices are determined
under the same general business conditions as applied for external customers.
The Company also discloses EBITDA (i.e., segment income and loss after addition of depreciation andamortization excluding amortization relating to costs to obtain contracts) and adjusted EBITDA (i.e., EBITDA
after addition or deduction of gain relating to loss of control over subsidiaries, adjustments relating toinvestments in SoftBank Vision Fund and Delta Fund (unrealized gain and loss on valuation of investments andeffect of foreign exchange translation), and other adjustments (gains are deducted)) by each reportable segment.

57

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

“Other adjustments” are special items, such as acquisition-related costs and impairment loss mainly included inother operating income and loss.
Adjusted EBITDA in SoftBank Vision Fund and Delta Fund segment is defined as the total amount of difference
between the realized amount by sales of investments and acquisition costs (“realized gain and loss from sales ofinvestments”) and interest and dividend income from investments with deduction of operating expenses(excluding depreciation and amortization).
Income and loss, which is not attributable to operating income and loss, such as financial cost and income andloss on equity method investments, is not managed by each reportable segment and therefore these income andlosses are excluded from segment performance.
For the six-month period ended September 30, 2017
(Millions of yen)

Reportable segments

SoftBank

Sprint

Yahoo
Japan

1,688,721

1,712,283

410,325

SoftBank
Vision Fundand Delta FundArm

93,675

Total

Brightstar

Net sales
Customers
Intersegment
Total
Segment income-

471,624

4,376,628

17,841

81,044

11,0391-

13,216

123,141

1,706,562

1,793,327

421,364

93,676-484,840

4,499,769

440,776

202,176

91,241(14,794)

186,238(368)

905,269

91,241(14,794)

186,238(368)

905,269

Reconciliation of segment income to adjusted EBITDA
Segment income
Depreciation andamortization

440,776

202,176

228,963

463,991

20,09030,285-

3,014

746,343

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

669,739

666,167

111,331

15,491

186,238

2,646

1,651,612

-

-

-

-

(194,336)-(194,336)

Other adjustments-(37,136)(4,929)---(42,065)

Adjusted EBITDA

669,739

629,031

106,402

15,491(8,098)2,646

1,415,211(Millions of yen)

Reconciliations

Other

Consolidated

Net sales
Customers

34,507-

4,411,135Intersegment

5,488(128,629)

-

Total

39,995(128,629)

4,411,135

Segment income(5,700)(24,730)

874,839

Reconciliation of segment income to adjusted EBITDA
Segment income
Depreciation andamortization(5,700)(24,730)

874,839

3,339

825

750,507

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

(2,361)(23,905)

1,625,346--(194,336)

Other adjustments

-

1,537

(40,528)

Adjusted EBITDA(2,361)(22,368)

1,390,482

58

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

For the six-month period ended September 30, 2018
(Millions of yen)

Reportable segments
SoftBank
Vision Fundand Delta Fund

SoftBank

Sprint

Yahoo
Japan

1,777,285

1,741,589

442,494

17,81882,435

11,1462-

13,180124,581

1,795,103

1,824,024

453,640

91,693-525,001

4,689,461

446,945

193,328

77,729141,242

632,434(8,873)

1,482,805

Arm

91,691

Total

Brightstar

Net sales
Customers
Intersegment
Total
Segment income-

511,8214,564,880

Reconciliation of segment income to adjusted EBITDA
Segment income
Depreciation andamortization

446,945

193,328

77,729141,242

632,434(8,873)

1,482,805

225,709517,328

26,19437,65231

2,559

809,473

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

672,654710,656

103,923

178,894

632,465(6,314)2,292,278---(176,261)--(176,261)

-

-

-

-

(504,359)-(504,359)

-

-

-

-

4,291

-

4,291

Other adjustments

81

16,540(3,751)---

12,870Adjusted EBITDA

672,735

727,196

100,172

2,633

132,397(6,314)

1,628,819(Millions of yen)

Reconciliations

Other

Consolidated

Net sales
Customers

88,973-

4,653,853

Intersegment

5,838(130,419)

-

Total

94,811(130,419)

4,653,853

Segment income(25,116)(36,973)

1,420,716

Reconciliation of segment income to adjusted EBITDA
Segment income
Depreciation andamortization(25,116)(36,973)

1,420,716

14,535508

824,516

EBITDA
Gain relating to loss ofcontrol over subsidiaries
Adjustments relating toinvestments in SoftBank
Vision Fund and Delta
Fund
Unrealized gain (loss) on
valuation of investments
Effect of foreignexchange translation(10,581)(36,465)

2,245,232--(176,261)--(504,359)

-

-

4,291

Other adjustments

1,574

-

14,444

Adjusted EBITDA(9,007)(36,465)

1,583,347

59

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

For the three-month period ended September 30, 2017
(Millions of yen)

Reportable segments

SoftBank

SoftBank
Vision Fundand Delta Fund

Sprint

Yahoo
Japan

Arm

837,263

206,146

46,639Total

Brightstar

Net sales
Customers
Intersegment

857,372-

257,971

2,205,391

7,320

45,641

5,835

-

-

6,741

65,537

Total

864,692

882,904

211,981

46,639-264,7122,270,928

Segment income

220,434

70,18940,337(7,859)81,009960

405,070

81,009960

405,070

Reconciliation of segment income to adjusted EBITDA
Segment income
Depreciation andamortization

220,434

70,18940,337(7,859)115,767

233,159

10,443

15,402-

1,528

376,299

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

336,201

303,348

50,780

7,543

81,0092,488

781,369

-

-

-

-

(87,465)-(87,465)

Other adjustments

-

3,830

-

-

-

-

3,830

Adjusted EBITDA

336,201

307,178

50,7807,543(6,456)

2,488

697,734(Millions of yen)

Reconciliations

Other

Consolidated

Net sales
Customers

19,685-2,225,076

Intersegment

2,901(68,438)-

Total

22,586(68,438)

2,225,076

Segment income(1,170)(8,334)

395,566

Reconciliation of segment income to adjusted EBITDA(8,334)

395,566

1,806

411

378,516636(7,923)774,082--(87,465)

Other adjustments

-

(75)

3,755

Adjusted EBITDA

636(7,998)690,372

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

(1,170)60

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

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

Reportable segments
SoftBank
Vision Fundand Delta Fund

Sprint

Yahoo
Japan

Arm

907,411

899,101

222,225

50,158SoftBank

Total

Brightstar

Net sales
Customers
Intersegment-

264,415

2,343,310

7,232

41,681

5,279

1

-

6,758

60,951

Total

914,643

940,782

227,504

50,159-271,173

2,404,261

Segment income

225,150

95,22038,979(3,950)392,490(3,528)744,361

Reconciliation of segment income to adjusted EBITDA
Segment income
Depreciation andamortization

225,150

95,22038,979(3,950)392,490(3,528)744,361

113,486

263,793

13,753

19,11525

1,380

411,552

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

338,636

359,013

52,732

15,165392,515(2,148)1,155,913---(14,914)--(14,914)

-

-

-

-

(258,557)-(258,557)
4,291

-

-

-

-

4,291

-

Other adjustments

81

8,017

(3,751)

-

-

-

4,347

Adjusted EBITDA

338,717367,030

48,981

251

138,249(2,148)891,080(Millions of yen)

Reconciliations

Other

Consolidated

Net sales
Customers

37,760-2,381,070

Intersegment

3,371(64,322)-

Total

41,131(64,322)

2,381,070

Segment income(17,192)(21,446)

705,723

Reconciliation of segment income to adjusted EBITDA
Segment income
Depreciation andamortization(17,192)(21,446)

705,723

7,630

181

419,363

EBITDA
Gain relating to loss ofcontrol over subsidiaries
Adjustments relating toinvestments in SoftBank
Vision Fund and Delta
Fund
Unrealized gain (loss) on
valuation of investments
Effect of foreignexchange translation(9,562)(21,265)

1,125,086--(14,914)--(258,557)

-

-

4,291

Other adjustments

1,342

-

5,689

Adjusted EBITDA(8,220)(21,265)

861,595

61

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

3. 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
September 30, 2018
255,738
2,293,704
901,343
88,924
468,873
79,8384,088,420

4. 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
September 30, 2018

3,960,597
664,878
12,2264,241,346
708,030
13,060739,901
521,603
332,444
125,866
115,333
89,27857,357
165,067
6,784,550724,021495,429
290,964
153,223
113,039
87,321
59,393
180,638
7,066,464

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 Six-Month Period Ended September 30, 2018

5. 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
September 30, 2018

957,573
100,000
1,093,705
590,277455,670

1,179,478
73,0001,389,948
1,120,734
452,018-

741,680

20,1803,217,405

15,597
4,972,455

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

5,323,955
6,888,999
793,133

688,332-

14,607
13,824,783

9,215
13,015,302

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 ofSeptember 30, 201887,259313,143
400,402

101,905
635,889
737,794

108,749
108,749

13,141
13,141

509,151

750,935(10,744)(115,046)

498,407635,889

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 Six-Month Period Ended September 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; ¥741,680 million is recognized as the current portion of financial liabilities relating to the sale of sharesthrough the variable prepaid forward contract in interest-bearing debt (current liabilities) (¥688,332 million
recognized as financial liabilities relating to the sale of shares through the variable prepaid forward contract ininterest-bearing debt (non-current liabilities) as of March 31, 2018) and ¥620,020 million is recognized as
derivative financial liabilities (current liabilities) in the condensed interim consolidated statement of financial
position as of September 30, 2018 (¥714,126 million recognized as derivative financial liabilities (non-current
liabilities) as of March 31, 2018); ¥141,386 million is recognized as a derivative gain in the condensed interim
consolidated statement of income for the six-month period ended September 30, 2018 (¥508,421 million ofderivative loss for the six-month period ended September 30, 2017).
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 September 30, 2018. The carrying amount of Alibaba shares
pledged as collateral by the Company is ¥230,669 million as of September 30, 2018 (¥217,182 million as ofMarch 31, 2018).

64

SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 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)

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

Six-month period ended
September 30, 2017
429,851
20,000Six-month period ended
September 30, 2018
53,044(27,000)

449,851

26,044(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)

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

Six-month period ended
September 30, 2017
607,942665,804

Six-month period ended
September 30, 2018
3,501,376
722,744

255,391

283,586

1,529,137

4,507,706(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)Six-month period ended
September 30, 2017
(632,750)(388,938)(245,725)(19,454)(1,286,867)

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

65

Six-month period ended
September 30, 2018
(3,078,687)(757,640)(263,149)(11,151)(4,110,627)

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

6. 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
394,194-

394,194

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

199,757(199,757)-

Distribution to third-party investors(198,310)-(198,310)

40,657
159,100

Fixed distributions
Performance-based distributions(56,910)1(141,400)

Repayment to third-party investors
Exchange differences on translating
third-party interests2(195,897)-(195,897)

133,334--

As of September 30, 2018

2,177,757

Notes:
1. SBIA has a right to receive performance fees based on investment performance of SoftBank Vision Fund and Delta Fund.
However, performance fees from monetization of investments are not paid to SBIA during the investment period ofSoftbank Vision Fund (five years from November 20, 2017), instead equivalent amount as the performance fees
attributable to SBIA is temporarily paid to the limited partners during the period, under a limited partnership agreement.
After the investment period, the equivalent amount is distributed to SBIA as a performance fee, which is given priority
over performance-based distribution to limited partners from monetization of investments in post-investment period. The
equivalent amount as the performance fees attributable to SBIA, which were temporarily paid to the limited partners, is¥(47,979) million for the six-month period ended September 30, 2018.
2. 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 September 30, 2018 is $45.5 billion.

66

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

7. Foreign currency exchange rates
Exchange rates of the major currencies used for translating financial statements of foreign operations are as follows:(1) Rate at the end of the period
(Yen)
As of
September 30, 2018113.57148.53

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

For the six-month period ended September 30, 2017

USD
GBP

Three-month period ended
June 30, 2017111.61142.92(Yen)
Three-month period ended
September 30, 2017111.38146.20For the six-month period ended September 30, 2018

USD
GBP

Three-month period ended
June 30, 2018108.71147.54(Yen)
Three-month period ended
September 30, 2018111.55145.84

8. Equity(1) Capital surplus
For the six-month period ended September 30, 2018, SoftBank Corp. acquired Yahoo Japan Corporation shares
mainly from Altaba Inc. at ¥221.0 billion (ownership percentage 10.78%). In addition, Yahoo Japan Corporationacquired its own shares from SoftBank Group Japan Corporation, a wholly-owned subsidiary of the Company, at¥220.0 billion (ownership percentage 10.73%). As a result of the transaction, the ownership percentage in Yahoo
Japan Corporation by the Company has changed from 42.95 % to 48.17%. Subsequently, ¥56,632 million is
deducted from capital surplus as “Changes in interests in subsidiaries.”(2) 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 theoption to defer interest payments, the notes have no maturity date, and the Company has an unconditional right toavoid delivering cash or another financial asset except for distribution of residual assets on liquidation.

67

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

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

As ofMarch 31, 2018

As of
September 30, 2018

Available-for-sale financial assets

63,700-Equity financial assets at FVTOCI

-

8,627

Debt financial assets at FVTOCI
Cash flow hedges
Exchange differences on translating
foreign operations
Total

-

(97)

(55,286)(79,334)

309,545489,748

317,959

418,944

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 “(2) Effect of adopting
new standards and interpretations” under “Note 1. Significant accounting policies.”

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

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

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

SoftBank segment
Other
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
Gain from remeasurement relating to businesscombination
Insurance income
Company-wide
Expenses resulting from resignation of director
Other
Loss on equity method investments at Fortress
Total

Six-month period ended
September 30, 2017

Six-month period ended
September 30, 2018

-

(81)

(44,497)(37,960)

558
53,435
6,186
352(3,810)
7,606
972
-

3,751

4,929

-

(1,537)--(1,574)

19,426(31,096)Note:* ¥30,365 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 forthe six-month period ended September 30, 2018.

11. Finance cost
The components of finance cost are as follows:(Millions of yen)Interest expenses

Six-month period ended
September 30, 2017

Six-month period ended
September 30, 2018

(243,458)(322,342)

12. Derivative gain (loss)
A derivative gain was recorded for ¥141,386 million related to the Alibaba share collar transaction included in thevariable prepaid forward contract. The details are described in “(2) Transaction for sale of Alibaba shares by
variable prepaid forward contract” under “Note 5. Interest-bearing debt.”
In addition, derivative loss was recorded for ¥80,886 million related to borrowings by SoftBank Vision Fund using
shares.

69

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

13. Gain from remeasurement relating to discontinuing the use of the equity method
In September 2018, regarding PT Tokopedia in Indonesia, an equity method associate, the voting proxy deed wasentered into between the Company and a shareholder of PT Tokopedia. As a result, the number of voting rights in
PT Tokopedia exercisable by the Company decreased and the Company has no significant influence over PT
Tokopedia. Consequently, PT Tokopedia is no longer qualified as an equity method associate.
The gain from remeasurement of equity interests in PT Tokopedia continuously held by the Company at fair valueon the date of discontinuing the use of the equity method is ¥89,209 million.
In addition, all investments in PT Tokopedia are agreed to be transferred from the Company to SoftBank Vision
Fund in October 2018. The details of accounting treatment for the transfer are described in “e. Investments that are
not Bridge Investments and for which the transfer is agreed” in “(3) Significant accounting policies for SoftBank
Vision Fund and Delta Fund segment” under “Note 1. Significant accounting policies.”

14. Other non-operating income
The components of other non-operating income and loss are as follows:(Millions of yen)Six-month period ended
September 30, 201737,488Six-month period ended
September 30, 2018
30,214

Interst income

8,636

15,200Loss on redemption of corporate bonds
Other
Total

(7,207)(14,538)

1,122
40,039(3,166)
27,710

Dilution gain from changes in equity interest*

Note:* Mainly, dilution gain arising from changes in Alibaba’s equity interest held by the Company due to the exerciseof stock options in Alibaba.

70

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

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)Six-month period ended
September 30, 2017

Six-month period ended
September 30, 2018-

146,682

194,336504,359

194,336

2,607(4,291)
649,357(8,098)(16,923)

186,238

632,434

Finance cost (interest expense)3(220)(11,711)

Foreign exchange gain and loss

20

(22)

Derivative gain and loss
Change in third-party interests in SoftBank Vision
Fund and Delta Fund-

(80,953)(77,157)(199,757)

Other non-operating income and loss

(1,800)(535)

Income before income tax

107,081

339,456

Gain and loss on investments at SoftBank Vision
Fund and Delta Fund
Realized gain and loss from sales of aninvestmemt1
Unrealized gain and loss on valuation of
investments
Interest and dividend income from investments
Effect of foreign exchange translation2
Operating expenses
Operating income from SoftBank Vision Fundand Delta Fund

Notes:
1. SoftBank Vision Fund sold the shares in Flipkart Private Limited (“Flipkart”) in August 2018. The gain realizedon the sale is translated using the average foreign currency exchange rate for the three-month period ended in
September 30, 2018.
2. Mainly, the effect of foreign exchange translation is derived by the difference between the average foreign
currency exchange rate prevailing in the three-month period ended in June 2018 that was used to calculate theunrealized gain on the investment in Flipkart and the average foreign currency exchange rate used to calculate therealized gain.
3. The amount before elimination of inter-company transactions is ¥(11,901) million for the six-month period ended
September 30, 2018 (¥(235) million for the six-month period ended September 30, 2017).

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 six-month period ended September 30, 2018
The distributions and repayments from SoftBank Vision Fund and Delta Fund to third-party investors are¥(198,310) million and ¥(195,897) million respectively.

71