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

SoftBank Group Corp.
Consolidated Financial Report
For the Three-Month Period Ended June 30, 2021 (IFRS)Tokyo, August 10, 2021

1.

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

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

Net sales

Three-month period ended
June 30, 2021
Three-month period ended
June 30, 2020

Incomebefore income tax

Net income

Net income
attributable toowners of the parent

Amount%Amount%Amount¥1,479,134

15.6¥1,292,478

55.0¥932,489 (29.2)¥1,279,973-¥834,120-¥1,316,421

Basic earnings per
share (Yen)

Diluted earnings per
share (Yen)Three-month period ended
June 30, 2021

¥437.45¥394.73

Three-month period ended
June 30, 2020

¥615.95¥589.96%

11.8

Amount%Amount¥761,509 (39.4)¥1,255,712

Total
comprehensive
income11.9%¥996,400 (12.3)¥1,136,007

52.0

Note:
* Net sales and income before income tax are presented based on the amounts from continuing operations only. Year-on-year
percentage changes in net sales and income before income tax for the three-month period ended June 30, 2020 are not presented
because corresponding amounts for the three-month period ended June 30, 2020 are revised and presented respectively.

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

Total assets

Total equity

Equityattributable toowners of theparentAs of June 30, 2021

¥47,185,597¥12,491,107¥10,725,545

22.7

As of March 31, 2021

¥45,750,453¥11,955,593¥10,213,093

22.3

2.

Dividends
Dividends per shareFirst quarter
Fiscal year ended
March 31, 2021
Fiscal year ending
March 31, 2022

Second quarter

Third quarter

Fourth quarter

Total

(Yen)

(Yen)

(Yen)

(Yen)

(Yen)

-

22.00

-

22.00

44.00

22.00

-

22.00

44.00

-

Fiscal year ending
March 31, 2022 (Forecasted)
Note:* Revision of the latest forecasts on the dividends: No* Notes(1) Significant changes in scope of consolidation (changes in scope of consolidation of specified subsidiaries): Yes
Newly consolidated: None
Excluded from consolidation: One entity: Boston Dynamics, Inc.
Notes:
1. Please refer to page 47 “(1) Significant Changes in Scope of Consolidation for the Three-Month Period Ended June 30, 2021”
under “2. Notes to Summary Information” for details.
2. Foreign subsidiaries prepare stand-alone financial statements only under circumstances where it is necessary under their local
laws and practices. Applicability of Cabinet Office Ordinance on Disclosure of Corporate Affairs, etc. Article 19, Paragraph(10), Item (i) to (iii), is determined by using the financial statements.
On the other hand, for foreign subsidiaries that do not prepare stand-alone financial statements, information on the capital andnet assets for those companies is not available. Therefore, Cabinet Office Ordinance on Disclosure of Corporate Affairs, etc.
Article 19, Paragraph (10), Item (i) is used to determine whether the companies are the specified subsidiaries.
The applicability of Cabinet Office Ordinance on Disclosure of Corporate Affairs, etc. Article 19, Paragraph (10), Item (i) is
determined based on the percentage of total amount of purchase from SoftBank Group Corp. and dividend paid to SoftBank
Group Corp. to total amount of operating revenue of SoftBank Group Corp.
For fund-type subsidiaries, the amount of net assets based on financial statements prepared in accordance with thecorresponding laws and practices is used to determine the applicability of Cabinet Office Ordinance on Disclosure of
Corporate Affairs, etc. Article 19, Paragraph (10), Item (ii).
(2) Changes in accounting policies and accounting estimates[1][2]

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

Changes in accounting estimates: Yes

Please refer to page 47 “(2) Changes in Accounting Estimates” under “2. Notes to Summary Information” for details.

(3) Number of shares issued (common stock)[1] Number of shares issued (including treasury stock):
As of June 30, 2021:
As of March 31, 2021:
[2]

[3]

Number of shares of treasury stock:
As of June 30, 2021:

1,722,953,730 shares
2,089,814,330 shares
9,840,813 shares

As of March 31, 2021:
351,297,587 shares
Number of average shares outstanding during three-month period (April-June):
As of June 30, 2021:
As of June 30, 2020:

1,722,780,500 shares
2,026,277,715 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 intime and assumptions which are deemed to be reasonable. However, actual results may be different due to various factors.
On August 10, 2021 (JST), the Company will hold an earnings results briefing for the media, institutional investors, and financial
institutions. This earnings results briefing will be broadcast live on the Company’s website in both Japanese and English athttps://group.softbank/en/ir/presentations. The Data Sheet will also be posted on the website in a few days at the same site.

SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2021

(Appendix)

Contents
1. Results of Operations ......................................................................................................................................... P.3(1) Overview of Results of Operations .............................................................................................................. P.3
a. Consolidated Results of Operations ........................................................................................................... P.4
b. Results by Segment .................................................................................................................................... P.7(a) Investment Business of Holding Companies Segment ......................................................................... P.8(b) SVF1 and Other SBIA-Managed Funds Segment .............................................................................. P.15
(c) SoftBank Segment .............................................................................................................................. P.24(d) Arm Segment ...................................................................................................................................... P.25(e) Latin America Fund Segment ............................................................................................................. P.31
(f) Other .................................................................................................................................................... P.32
(2) Overview of Financial Position .................................................................................................................. P.33
(3) Overview of Cash Flows ............................................................................................................................ P.43
(4) Forecasts ..................................................................................................................................................... P.46
2. Notes to Summary Information ......................................................................................................................... P.47
(1) Significant Changes in Scope of Consolidation for the Three-Month Period Ended June 30, 2021............... P.47
(2) Changes in Accounting Estimates ............................................................................................................... P.47
3. Condensed Interim Consolidated Financial Statements and Primary Notes ...................................................... P.48
(1) Condensed Interim Consolidated Statement of Financial Position.............................................................. P.49
(2) Condensed Interim Consolidated Statement of Income
and Condensed Interim Consolidated Statement of Comprehensive Income ............................................. P.51
(3) Condensed Interim Consolidated Statement of Changes in Equity ............................................................. P.53
(4) Condensed Interim Consolidated Statement of Cash Flows ........................................................................ P.57
(5) Significant Doubt about Going Concern Assumption ................................................................................. P.59
(6) Notes to Condensed Interim Consolidated Financial Statements ................................................................ P.59
Disclaimer
This material does not constitute an offer to sell, or a solicitation of an offer to buy, limited partnership interests or comparable limited
liability equity interests in any fund, including SoftBank Vision Fund 1 and SoftBank Vision Fund 2, managed by a subsidiary of
SoftBank Group Corp., including SB Investment Advisers (UK) Limited or its affiliates, or any securities in any jurisdiction, norshould it be relied upon as such in any way.
Notice Regarding PFIC Status
It is possible that SBG and certain subsidiaries of SBG may be a “passive foreign investment company” (“PFIC”) under the U.S.
Internal Revenue Code of 1986, as amended, for its current fiscal year due to the composition of its assets and the nature of its income.
For the fiscal year ended March 31, 2021, we believe that SBG and certain subsidiaries of SBG were PFICs. We recommend that
U.S. holders of SBG’s shares consult their tax advisors with respect to the U.S. federal income tax consequences to them if SBG and
its subsidiaries are classified as PFICs. SBG is not responsible for any tax treatments or consequences thereof with respect to U.S.
holders of SBG’s shares.

1

SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2021

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

Definition

SoftBank Group Corp. or SBG
SoftBank Group Corp. (stand-alone basis)
The Company
SoftBank Group Corp. and its subsidiaries*Each of the following names or abbreviations indicates the respective company and its subsidiaries, if any.
SB Northstar
SB Northstar LP
SoftBank Vision Fund 1 or SVF1 SoftBank Vision Fund L.P. and its alternative investment vehicles
SoftBank Vision Fund 2 or SVF2 SoftBank Vision Fund II-2 L.P. and its alternative investment vehicles*1
SBIA
SB Investment Advisers (UK) Limited
SBIA USSB Investment Advisers (US) Inc.*2
SoftBank Latin America Fund
SoftBank Latin America Fund L.P.
Arm
Arm Limited
Alibaba
Alibaba Group Holding Limited
The first quarter
Three-month period ended June 30, 2021
The first quarter-end
June 30, 2021
The fiscal year
Fiscal year ending March 31, 2022
The previous fiscal year
Fiscal year ended March 31, 2021
The previous fiscal year-end
March 31, 2021
Notes:
1. The entities defined as “SoftBank Vision Fund 2” were established for the purpose of holding the investments expected to be owned
by “SoftBank Vision Fund 2,” a private fund which is expected to admit third-party investors in the future. As of the first quarterend, SBG is the sole limited partner investing in SoftBank Vision Fund 2.
2. SBIA US is a wholly owned subsidiary of the Company which provides investment advisory services to SBIA.

Exchange Rates Used for Translations
Fiscal year ended March 31, 2021
USD / JPY
Average rate for the quarter

Fiscal year ending
March 31, 2022

Q1

Q2

Q3

Q4

Q1

¥107.74¥105.88¥104.45¥106.24¥110.00¥110.71¥110.58

Rate at the end of the period

CHANGES IN PRESENTATION OF CONSOLIDATED STATEMENT OF INCOME AND REPORTABLE
SEGMENTS
Establishment of the Latin America Fund Segment
Latin America Fund, which was previously included within “Other,” is newly presented as an independent reportablesegment from the first quarter in light of the greater financial importance. In line with this, “gain on investments at
Latin America Fund,” which was previously included in “gain on other investments” in the Consolidated Statementof Income is newly presented as an independent item. Information in the same period of the previous fiscal year has
been reclassified and presented accordingly. See “OVERVIEW” under “(e) Latin America Fund Segment” in “b.
Results by Segment” in “(1) Overview of Results of Operations” in “1. Results of Operations” for the overview ofthe segment.

2

SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2021

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

1. Highlights of results
 Gain on investments of ¥1,263.1 billion- ¥741.5 billion investment gain at Investment Business of Holding Companies: Unrealized gain on
valuation of investments of ¥228.5 billion related to T-Mobile shares, derivative gain of ¥197.8 billion
resulting from an increase in the fair value of the Contingent Consideration, and gain on investments inlisted stocks and other instruments of ¥210.3 billion were recorded.
- ¥287.9 billion investment gain at SVF1, SVF2, and others
ꞏ SVF1: Realized gain (net) of ¥309.7 billion. Unrealized gain on valuation totaled ¥198.9 billion forlisted portfolio companies, where a gain totaling ¥899.4 billion recorded for six companies waspartially offset by a loss totaling ¥700.5 billion recorded for nine companies, including Coupang.
Unrealized gain on valuation (net) for unlisted portfolio companies totaled ¥97.3 billion.
ꞏ SVF2 recorded realized gain of ¥97.0 billion and unrealized gain on valuation (net) of ¥49.1 billion.
- ¥219.4 billion investment gain at Latin America Fund: Unrealized gain on valuation was recorded due toan increase in the fair value of investments.
 Income before income tax of ¥1,292.5 billion (increased ¥458.4 billion yoy)
- Finance cost of ¥82.8 billion*- Derivative loss (excluding gain (loss) on investments) of ¥111.5 billion** recorded as a cost for the first quarter Net income attributable to owners of the parent of ¥761.5 billion (decreased ¥494.2 billion yoy)
Net income from discontinued operations of ¥734.5 billion was recorded in the same period of the previous
fiscal year, primarily reflecting gain relating to loss of control of Sprint.

2. Status of investment activities
 SVF1: Further progress with public listings and monetization of investments- Investments: Made investments totaling $2.1 billion in the first quarter.
- Portfolio: Held 82 investments (including 15 listed portfolio companies) as of the first quarter-end. Fourcompanies were newly listed in the first quarter.
- Monetization: SVF1 distributed the proceeds from the partial sale of investments in the first quarter, of
which the Company received $1.5 billion.
 SVF2: Active new investments- Investments: SVF2 made new investments in 47 companies, and some follow-on investments for a totalof $13.5 billion in the first quarter, bringing the fund’s total cost to $20.2 billion. SBG increased its
committed capital to $40 billion.
- Portfolio: Held 91 investments (including seven listed portfolio companies) as of the first quarter-end.
Four companies were newly listed in the first quarter.
- Monetization: SVF2 distributed $2.1 billion to the Company with the proceeds from the partial sale andmonetization of a listed portfolio company.
 SoftBank Latin America FundThe fund made investments totaling $0.8 billion in the first quarter, including new investments in 10
companies and follow-on investments in existing portfolio companies. As of the first quarter-end, thefund had 48 investments.*1
3. Procured funds to meet funding needs in a disciplined yet flexible manner for debt repayment andnew investments
In the first quarter, the Company issued domestic hybrid bonds of ¥405.0 billion. In addition, theCompany raised $3.0 billion through prepaid forward contracts using Alibaba shares and $1.88 billion
through borrowings using Alibaba shares (margin loan). In July 2021, foreign currency-denominatedcorporate bonds of $3.85 billion and €2.95 billion were also issued.
Note:
1. Includes one investment accounted for as a subsidiary of the Company.

3SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2021

a. Consolidated Results of Operations(Millions of yen)Three months ended June 30
2020
2021
Continuing operations
Net sales
Gross profit
Gain on investments
Gain on investments at Investment Businessof Holding Companies
Gain on investments at SVF1, SVF2,
and others
Gain on investments at Latin America Fund
Gain on other investments
Total gain on investments

ChangeChange %1,279,973
697,472

1,479,134
811,971

199,161
114,49915.6% A
16.4%

650,493

741,526

91,033

14.0% B

296,577
23,281
12,569982,920

287,881219,368
14,293
1,263,068(8,696)
196,087
1,724
280,148(2.9%) C
842.2% D
13.7%
28.5%

Selling, general and administrative expenses
Finance cost
Income on equity method investments
Derivative loss
(excluding gain (loss) on investments)
Change in third-party interests in SVF1
Other gain
Income before income tax(504,574)(76,993)
6,573(593,430)(82,799)
50,380(88,856)(5,806)43,80717.6%
7.5% E
666.3% F(175,825)(147,643)
52,190834,120(111,536)(134,093)
88,917
1,292,478

64,28913,55036,727458,358(36.6%) G(9.2%)
70.4%
55.0%

Income taxes
Net income from continuing operations(252,159)
581,961(359,989)
932,489(107,830)
350,528

42.8% H
60.2%

Discontinued operations
Net income from discontinued operations

734,460-(734,460)-

Net income
Net income attributable to owners of the parent

1,316,421
1,255,712

932,489
761,509(383,932)(494,203)(29.2%)(39.4%)

Total comprehensive income
Comprehensive income attributable to owners of
the parent

1,136,007

996,400(139,607)(12.3%)

1,073,486

823,095(250,391)(23.3%)

The following is an overview of the main and noteworthy components.
A Net Sales

Net sales increased in the SoftBank and Arm segments.

4

ISoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2021

B Gain on Investments at Investment Business of Holding Companies

The Company recorded unrealized gain on valuation of ¥228,463 million related to T-Mobile shares (T-Mobile US,
Inc. after merging with Sprint Corporation), derivative gain of ¥197,783 million associated with an increase in thefair value of the right to acquire T-Mobile shares for no additional consideration if certain conditions are met (the“Contingent Consideration”), and gain on investments of ¥210,347 million from investments in listed stocks andother instruments. See “(a) Investment Business of Holding Companies Segment” under “b. Results by Segment”
for details.
C Gain on Investments at SVF1, SVF2, and Others

SVF1 recorded realized gain on investments (net) of ¥309,680 million as a result of sales1 of entire and partial
shareholding positions. In addition, SVF1 recorded unrealized gain on valuation (net) totaling ¥198,927 million forlisted portfolio companies. This included a gain of ¥899,383 million recorded for six companies, particularly¥358,344 million recorded for DiDi Global Inc. (“DiDi”) and ¥285,422 million recorded for DoorDash, Inc. (“DoorDash”), which was partially offset by a valuation loss of ¥700,456 million recorded for nine companies, particularly¥470,604 million recorded for Coupang, Inc. (“Coupang”). SVF1 also recorded unrealized gain on valuation (net)of ¥97,265 million for unlisted portfolio companies, as a result of increases in the fair value of investments.
SVF2 recorded realized gain on investments of ¥96,962 million as a result of the partial sale of its investment in
KE Holdings Inc. (“KE Holdings”). SVF2 also recorded unrealized gain on valuation (net) of ¥49,134 million.
While the share prices of KE Holdings and of Seer, Inc. (“Seer”) fell, share prices rose for Full Truck Alliance Co.
Ltd. (“Full Truck Alliance”) and Dingdong (Cayman) Limited (“Dingdong”) and the fair value of unlisted portfolio
companies increased as a result of new funding rounds and other factors. See “(b) SVF1 and Other SBIA-Managed
Funds Segment” under “b. Results by Segment” for details.
D Gain on Investments at Latin America Fund

Latin America Fund recorded unrealized gain on valuation of investments (net) totaling ¥219,236 million due to anincrease in the share price of Banco Inter S.A., as well as increases in the fair value of unlisted portfolio companies
such as QUINTOANDAR, LTD. and VTEX.2 See “(e) Latin America Fund Segment” under “b. Results by Segment”
for details.
Primarily as a result of B through D, total gain on investments was ¥1,263,068 million.
E Finance Cost

Interest expenses increased ¥6,445 million in the Investment Business of Holding Companies segment.

1 Includes a share exchange. During the first quarter, SVF1 exchanged all of its shares in PT Tokopedia (“Tokopedia”) for shares in
GoTo, a newly formed company as a result of merger between Tokopedia and PT Aplikasi Karya Anak Bangsa. This share exchange
is treated as a full exit (entire sale) from investment and acquisition of new investment, with the sale price and acquisition cost being
recorded in gross, respectively, and with the difference between the acquisition cost of shares initially held and sale price (acquisition
cost of the exchanged shares) being recorded as realized gain and loss on the investments.
2 VTEX was listed on the NYSE on July 21, 2021 (U.S. time).

5SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2021

F Income on Equity Method Investments

Income on equity method investments related to Alibaba was ¥58,731 million,3 an improvement of ¥77,203 million
year on year. A loss was recorded for Alibaba in the same period of the previous fiscal year mainly due to therecording of an investment loss on its investments classified as financial assets at FVTPL for the three-month period
ended March 31, 2020, following the fall in stock markets due to the COVID-19 pandemic.
In addition, Alibaba recorded an expense for the three-month period ended March 31, 2021 for the fine levied by
China’s State Administration for Market Regulation pursuant to China’s Anti-Monopoly Law, which the Company
recorded in the fourth quarter of the previous fiscal year as a significant event during the period on a three-monthtime lag.
G Derivative Loss (Excluding Gain (Loss) on Investments)

Derivative loss of ¥109,662 million was recorded in connection with prepaid forward contracts using Alibaba shares
entered into in November 2019, from April to August 2020, and in May 2021.
Primarily as a result of A through G, income before income tax was ¥1,292,478 million, an increase of¥458,358 million (55.0%) year on year.
H Income Taxes

Income taxes were recorded at SoftBank Corp. and at Yahoo Japan Corporation. Meanwhile, deferred tax expenses
were recorded due to an increase in the fair value of T-Mobile shares and of the Contingent Consideration.
I

Net Income from Discontinued Operations

In the same period of the previous fiscal year, the Company had recorded a gain of ¥736,429 million relating to lossof control of Sprint Corporation in connection with Sprint Corporation ceasing to be a subsidiary of the Company,
following the completion of the merger between Sprint Corporation and T-Mobile US, Inc.
Primarily as a result of A through I, net income attributable to owners of the parent was ¥761,509 million, adecrease of ¥494,203 million (39.4%) year on year.

For basic information used to calculate income (loss) on equity method investments related to Alibaba, see the Data Sheets in “Materials” under “Earnings Results Briefing” to be posted in a few days on the Company’s website athttps://group.softbank/en/ir/presentations/.

3 The Company applies the equity method to Alibaba’s consolidated financial statements (the Company’s economic interests in
Alibaba as of March 31, 2021: 25.01%) for a reporting period on a three-month time lag in the past because it is impractical to alignreporting periods with Alibaba due to contracts with the company, among others. Necessary adjustments are made to reflect significant transactions and events announced by Alibaba during the period on a three-month time lag.

6

SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2021

b. Results by Segment
The Company’s reportable segments are the components of its business activities for which decisions on resource
allocation and assessment of performance are made. In the first quarter, Latin America Fund was added as a new
segment. As of the first quarter-end, there are five reportable segments: Investment Business of Holding Companies,
SVF1 and Other SBIA-Managed Funds, SoftBank, Arm, and Latin America Fund.
The following is a summary of the reportable segments.
Segments

Main businesses

Core companies

Reportable segments
Investment Business ꞏ Investment activities by SBG and its subsidiaries
of Holding Companies

SoftBank Group Corp.
SoftBank Group Capital Limited
SoftBank Group Japan Corporation
SB Northstar LP

SVF1 and Other
SBIA-Managed
Funds

ꞏ Investment activities by SVF1 and SVF2

SB Investment Advisers (UK) Limited
SoftBank Vision Fund L.P.
SoftBank Vision Fund II-2 L.P.

SoftBank

ꞏ Provision of mobile services, sale of mobile
devices, and provision of broadband and otherinternet services in Japan
ꞏ Internet advertising and e-commerce business

SoftBank Corp.
Z Holdings Corporation
Yahoo Japan Corporation
LINE Corporation

Armꞏ Design of microprocessor intellectual property
and related technology
ꞏ Sale of software tools and provision of related
services

Arm Limited

Latin America Fund ꞏ Investment activities by SoftBank Latin America Fund
Other

SoftBank Latin America Fund L.P.

ꞏ Smartphone payment business

PayPay Corporation

ꞏ Alternative investment management business

Fortress Investment Group LLC

ꞏ Fukuoka SoftBank HAWKS-related businesses

Fukuoka SoftBank HAWKS Corp.

7

SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2021

(a) Investment Business of Holding Companies Segment
1. Recorded unrealized gain of ¥228.5 billion on valuation of T-Mobile shares and derivative gain of¥197.8 billion resulting from an increase in the fair value of the Contingent Consideration.
2. Recorded gain of ¥210.2 billion*1 on investment in listed stocks and other instruments (total investment gain and loss of SBG and SB Northstar). Holdings of stocks, etc. decreased to ¥1.5 trillion from ¥2.2 trillion at the previous fiscal year-end.
Note:
1. Includes an impact of investment by SB Northstar in SPACs controlled by SBIA US, which is eliminated in consolidation.

OVERVIEWThis segment is led by SBG, which conducts investment activities, either directly or through subsidiaries, as a
strategic investment holding company. The segment consists of SBG, SoftBank Group Capital Limited (“SBGC”),
SoftBank Group Japan Corporation (“SBGJ”), asset management subsidiary SB Northstar, and certain other subsidiaries engaged in investment and financing activities. Gain and loss on investments at Investment Business of
Holding Companies comprises gain and loss on investments held by SBG either directly or through its subsidiaries,
but does not include gain and loss on investments pertaining to subsidiaries’ shares, such as dividend income fromsubsidiaries or impairment loss relating to subsidiaries’ shares.
The companies comprising this segment hold approximately 120 portfolio companies, including Alibaba, TMobile, and WeWork Inc. (“WeWork”),*1 as well as investees of SB Northstar. They are either equity method
associates (such as Alibaba) or investments classified as financial assets at FVTPL. Regarding the financial resultsof portfolio companies classified as equity method associates, income and loss are recorded as “income (loss) on
equity method investments” in proportion to equity interest. Investments classified as financial assets at FVTPL
are measured at fair value every quarter, and any change in fair value is recorded in the Consolidated Statement of
Income as “gain (loss) on investments.”
Note:
1. Gain and loss on investments in WeWork shares held by SVF1 is included in the SVF1 and Other SBIA-Managed Funds segment.

Investment in listed stocks and other instruments by the asset management subsidiaries
The Company has been investing in highly liquid listed stocks from the first quarter of the previous fiscal year todiversify assets held by the Company and to manage surplus funds. This has been done while being firmly committed
to its stated financial policies on its loan-to-value (LTV) ratio and cash position. These investments were made by
SBG in the first quarter of the previous fiscal year, but from the second quarter of the previous fiscal year, asset
management subsidiary SB Northstar has been acquiring and selling listed stocks and other instruments and engaging
in derivative and credit transactions related to listed stocks. The scale of its investments in listed stocks and other
instruments fluctuates depending on SBG’s funding needs, cash on hand, and the status of the assets held by SBG.
Interests in SB Northstar are indirectly held 67% by SBG and 33% by SBG’s Representative Director, Corporate
Officer, Chairman & CEO Masayoshi Son. Masayoshi Son’s interest is deducted from gain and loss on investments
at SB Northstar as a non-controlling interest; therefore, 67% of the gain and loss on investments impacts net
income attributable to owners of the parent. Furthermore, if, at the end of the fund life (12 years + 2-year extension),
SB Northstar has any unfunded repayment obligations to SBG, Masayoshi Son will pay his pro rata share of any
such unfunded obligations based upon his relative ownership percentage of SB Northstar.

8

SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2021

FINANCIAL RESULTS(Millions of yen)Three months ended June 30
2020
2021

Change Change %Gain on investments

650,493

741,380

90,887

14.0%

Gain relating to sales of T-Mobile shares
Realized gain on investments at asset
management subsidiaries
Unrealized gain on valuation of investments at
asset management subsidiaries
Derivative gain on investments at asset management subsidiaries
Realized gain on investments
Unrealized gain on valuation of investments
Derivative gain on investments
Other
Selling, general and administrative expenses
Finance cost
Income on equity method investments
Derivative loss
(excluding gain (loss) on investments)
Other gain

421,863-(421,863)--

65,41665,416--

17,557

17,557-65,44528,515
133,349
1,321(22,288)(53,150)
4,103

119,51191,789288,351
147,277
11,479(20,320)(59,595)
54,670

119,511
26,344
259,836
13,928
10,158
1,968(6,445)50,56740.3%
911.2%
10.4%
768.5%(8.8%)
12.1% B- C

(176,190) (108,105)
55,92917,67568,085(38,254)- D(68.4%)

Segment income (income before income tax)

458,897

166,808

36.3%

625,705

A

A Gain on investments: ¥741,380 million
ꞏ Realized gain on investments at asset management subsidiaries of ¥65,416 million and unrealized gain on valuation of investments at asset management subsidiaries of ¥17,557 million were recorded. This was a result ofinvestments in listed stocks and other instruments by SB Northstar.
ꞏ Derivative gain on investments at asset management subsidiaries of ¥119,511 million was recorded. This wasdue to recording gains mainly related to long call options on listed stocks at SB Northstar.
ꞏ Realized gain on investments of ¥91,789 million and unrealized gain on investments of ¥288,351 million wererecorded. The former was mainly due to recording realized gain of ¥57,904 million associated with the sale of
InMobi Pte. Ltd. shares by SBG’s wholly owned subsidiary to SVF2 (amount reclassified from the amount recorded as unrealized gain on valuation in the previous fiscal year: ¥58,193 million. The sale was eliminated inconsolidation as an intercompany transaction). The latter was mainly due to the recording of valuation gain of¥228,463 million on investment in T-Mobile shares, as well as recording unrealized gain on valuation of investments of ¥49,382 million for SoFi Technologies, Inc., ¥23,764 million for WeWork, and ¥21,460 million for
Lemonade, Inc. to reflect increases in their fair value.
ꞏ Derivative gain on investments of ¥147,277 million was recorded. This was mainly due to the recording of a
derivative loss due to an increase of ¥53,763 million4 in the fair value of call options held by Deutsche Telekom
AG (“Deutsche Telekom”) for T-Mobile shares, while recording a derivative gain due to an increase of ¥197,783
4 Includes a derivative gain (loss) related to contingent value rights received on June 26, 2020, in relation to the disposal of T-Mobile
shares in a private placement through a trust.

9SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2021

million in the fair value of the Contingent Consideration (the call options held by Deutsche Telekom are defined
below).
B

Finance cost: ¥59,595 million (increased ¥6,445 million year on year)ꞏ Interest expenses at SB Northstar were ¥5,956 million (not recorded in the same period of the previous fiscal
year). This was due to the short-term borrowings for the purpose of acquiring listed stocks and borrowings using
Alibaba shares, both of which were made by the company following the commencement of its business in thesecond quarter of the previous fiscal year.
C

Income on equity method investments: ¥54,670 million (increased ¥50,567 million year on year)ꞏ Income on equity method investments related to Alibaba was ¥58,731 million, an improvement of ¥77,203 million year on year. Loss was recorded for Alibaba in the same period of the previous fiscal year mainly due torecording of investment loss on its investments classified as financial assets at FVTPL for the three-month period
ended March 31, 2020, following the fall in stock markets due to the COVID-19 pandemic.
In addition, Alibaba recorded an expense for the three-month period ended March 31, 2021 for the fine leviedby China’s State Administration for Market Regulation pursuant to China’s Anti-Monopoly Law, which the Company recorded in the fourth quarter of the previous fiscal year as a significant event during the period on a threemonth time lag.
ꞏ Income on equity method investments of ¥24,736 million related to T-Mobile for the period from April 1 to June25, 2020 was recorded in the same period of the previous fiscal year.
D

Derivative loss (excluding gain (loss) on investments): ¥108,105 million

ꞏ Derivative loss of ¥109,662 million was recorded in connection with the prepaid forward contracts using Alibaba
shares entered into in November 2019, from April to August 2020, and in May 2021.
Contingent Consideration related to T-Mobile shares and Deutsche Telekom Call Options
As consideration for the merger of Sprint Corporation, which had been a U.S. subsidiary of the Company, and TMobile US, Inc. on April 1, 2020, the Company received 304,606,049 T-Mobile shares and the right to acquire
48,751,557 T-Mobile shares for no additional consideration if the trailing 45-day volume-weighted average price pershare of T-Mobile common stock on the NASDAQ Global Select Market is equal to or greater than $150 at any time
during the period from April 1, 2022 and December 31, 2025 (the Contingent Consideration). Subsequently, the Company sold 198,314,426 of its 304,606,049 common shares of T-Mobile during the period from June to August 2020.
In addition, Deutsche Telekom holds call options for the 101,491,623 T-Mobile shares continued to be held by
the Company after the abovementioned sale (the “Deutsche Telekom Call Options”). The Deutsche Telekom Call
Options will expire on June 22, 2024, unless certain events occur that trigger an earlier expiration date.
(i) For a call option over 44,905,479 shares out of the 101,491,623 shares, the strike price is $101.455 per share.
(ii) For a call option over 56,586,144 shares out of the 101,491,623 shares, the strike price is equal to the average ofthe daily volume-weighted average prices of the shares of T-Mobile common stock for each of the 20 trading days immediately prior to the date of exercise. Deutsche Telekom can exercise this option for the period
from October 2, 2020 to May 22, 2024 only after the full exercise of (i) above, and thereafter regardless of theexercise of (i) above.

10

SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2021

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

Condensed Interim Consolidated
Statement of Financial Position

Investor

Investment type

SBG

StocksCondensed Interim Consolidated
Statement of Income
Balance at Q1E(Parentheses show
liabilities) Account

Account

Realized gain (loss) on investments*1
Unrealized gain (loss) on
23,252 valuation of investments*1

Investment securities
SB
Northstar

Stocks, etc.

Credit transactions
Derivatives
Long call options oflisted stocks
Short call options oflisted stocks
Short stock index
futures contracts
Total return swap
contracts related tolisted stocks
Forward contracts
related to listed
stocksRealized gain (loss) on investments
790,564 at asset management subsidiaries
Unrealized gain (loss) on valuation
687,457 of investments at asset- management subsidiaries*3

Investments fromasset management subsidiaries
Securities pledged as collateral inasset management subsidiaries
Borrowed securities*2
Derivative financial assets inasset management subsidiaries
Derivative financial liabilities in
asset management subsidiaries

Amountrecorded
Q1

Cumulative
gain (loss) fromthe previous
fiscal year

16,026238,035(8,309)33,97965,41644,87917,703

151,777

119,511(491,179)

210,347(22,509)(67,543)

98,174

142,804

75,665

235,547(14,247)--

Derivative financial assets inasset management subsidiaries

11,844

Derivative financial assets inasset management subsidiaries
Derivative financial liabilities in
asset management subsidiaries

6,752 Derivative gain (loss) on investments at asset management(221) subsidiaries

Notes:
Gain (loss) on investments at
1. Some of the listed shares acquired by SBG in the first and second quarters of the previous fiscal year were transferred to SB
Investment Business of Holding
Northstar in the second quarter of the previous fiscal year. For a portion of such listed shares that was sold to third parties
Companies
by SB Northstar after the transfer, the difference between the acquisition value paid by SBG and the transfer value to SB
Northstar is presented as “realized gain (loss) on investments.” For a portion of shares that continued to be held by SB
Northstar at the first quarter-end, such difference is presented as “unrealized gain (loss) on valuation of investments.” WhenNet income attributable to
SB Northstar sells such listed shares to third parties, the corresponding difference is reclassified from “unrealized gain
non-controlling interests*4,*5(loss) on valuation of investments” to “realized gain (loss) on investments.”
2. The fair value of the securities borrowed for short credit transactions.
3. After elimination of intercompany transactions
Impact on net income attributa4. 33% of the gain (loss) on investments at SB Northstar
ble to owners of the parent*5
5. Excludes impacts such as selling, general and administrative expenses and tax expenses.

11SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2021

Impact of the asset management subsidiaries on the Company’s Condensed Interim Consolidated Statement of
Financial Position*1
As of June 30, 2021
(Millions of yen)
June 30, 2021

Cash and cash equivalents
Investments from asset management subsidiaries
Securities pledged as collateral in asset management subsidiaries
Derivative financial assets in asset management subsidiaries
Other financial assets
Other326,698
790,564
687,457
254,143
84,04531,947

Total assets

2,174,854

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

1,424,509
14,46841,708

Total liabilities

1,480,685

Investments from Delaware subsidiaries*2

1,018,643

Equivalent amount of cash investments by SBG in Delaware subsidiaries
Equivalent amount of loans to Delaware subsidiaries held by SBG(the amount entrusted by SBG related to asset management)
Equivalent amount of cash investments by Masayoshi Son in Delaware subsidiaries
Retained earnings
Exchange differences on translating foreign operations

39,786
958,964
19,893 A(312,730) B(11,744)

Equity694,169

C

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

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

(Millions of yen)
19,893 A(104,209)(4,479)(88,795) D

Note:
3. One-third of B in the table(Interests in equity (C above))(Millions of yen)
782,964

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

(88,795) D

Equity694,169

12

C

SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2021

Status of assets
As of June 30, 2021
a. Stocks, etc.
(Millions of U.S. dollars)
Fair value as of June 30, 2021

Stock
AbCellera Biologics Inc.

216

Adaptive Biotechnologies Corporation

51

Amazon.com, Inc.

5,653

Century Therapeutics, Inc.

59

Graphite Bio, Inc.

31

ironSource Ltd.

53

Lyell Immunopharma, Inc.

57

Pacific Biosciences of California, Inc.

345

PayPal Holdings, Inc.

702

Sana Biotechnology, Inc.

52

Taiwan Semiconductor Manufacturing Company Limited ADR

812

16 SPACs467*1

Including three SPACs controlled by SBIA US

52

Others3,276*2

NVIDIA Corporation

210

OthersConvertible bonds

1,641

Total

13,629Notes:
1. Investments into the three SPACs controlled by SBIA US are eliminated in consolidation as intercompany transactions.
2. The NVIDIA shares are held by SBG.

b. Derivatives
Fair value as of June 30, 2021

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

Long call options of listed stocks

2,130

11,186

Short call options of listed stocks(129)(3,699)Total return swap contracts related to listed stocks

107

1,135

Forward contracts related to listed stocks

59

307

2,167

8,929

*1

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

13SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2021

MAIN INTEREST-BEARING DEBT AND LEASE LIABILITIES IN THIS SEGMENT
Balance as of June 30, 2021
in Condensed Interim
Consolidated Statement of
Financial Position

Borrower

Type

SBG

Borrowings¥1,838.7 billion

Corporate bonds¥5,152.9 billion

Lease liabilities¥13.0 billion

Commercial paper¥262.8 billion

Wholly owned subsidiaries conducting fund procurement*1
West Raptor Holdings, LLC
West Raptor Holdings 2, LLC
Skybridge LLC
Scout 2020 Holdings Limited
Tigress 2020 Holdings Limited
Panther I 2021 Holdings Limited
Panther II 2021 Holdings Limited

Prepaid forward contracts using Alibaba
shares (floor contracts and collar contracts)¥3,225.5 billion

Skywalk Finance GK

Borrowings using Alibaba shares¥1,100.3 billion

Moonlight Finance GK

Borrowings using SoftBank Corp. shares¥499.0 billion

Delaware Project 6 L.L.C.

Borrowings using T-Mobile shares¥481.0 billion

SB Northstar

Borrowings¥1,424.5 billion(of which, borrowings using Alibaba shares: ¥662.5 billion)
Note:
1. Wholly owned subsidiaries conducting fund procurement indicate West Raptor Holdings, LLC, West Raptor Holdings 2, LLC,
Skybridge LLC, Scout 2020 Holdings Limited, Tigress 2020 Holdings Limited, Panther I 2021 Holdings Limited, Panther II
2021 Holdings Limited, Skywalk Finance GK, Moonlight Finance GK, and Delaware Project 6 L.L.C.at the first quarter-end. At
the previous fiscal year-end, Skylark 2020 Holdings Limited was also included. Borrowings of these subsidiaries are non-recourse to SBG, except for the borrowing using T-Mobile shares which SBG partially guarantees.

14

SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2021(b) SVF1 and Other SBIA-Managed Funds Segment
1. Gain on investments (net) was ¥391.6 billion. Segment income, after deducting change in thirdparty interests, was ¥235.6 billion.
 SVF1- Realized gain on investments (net) of ¥309.7 billion: The partial sale of investments in listed
portfolio companies including DoorDash, Uber, and Guardant Health, etc.
- Unrealized gain on valuation of investments (net) of ¥380.9 billion from investments held at the firstquarter-endꞏ ¥198.9 billion valuation gain (net) for listed portfolio companies: Gain totaling ¥899.4 billion
recorded for six portfolio companies was partially offset by a loss totaling ¥700.5 billion recorded
for nine portfolio companies, including Coupang.
ꞏ ¥181.9 billion valuation gain (net) for unlisted portfolio companies primarily due to increases in
the fair values of investments where exits or listings are expected.
 SVF2- Realized gain on investments (net) of ¥97.0 billion- Unrealized gain on valuation of investments (net) of ¥49.1 billion from investments held at the firstquarter-end:ꞏ ¥35.5 billion valuation loss (net) for listed portfolio companiesꞏ ¥84.6 billion valuation gain (net) for unlisted portfolio companies
2. Status of investment activities
 SVF1- Investments before exit: Held 82 investments (including 15 listed portfolio companies) as of the firstquarter-end at cost totaling $74.0 billion, with the fair value amounting to $120.1 billion.
- Cumulative gross gain*1 since SVF1’s inception reached $58.3 billion, including cumulative realized
gain of $10.0 billion, cumulative derivative gain of $1.5 billion, and cumulative dividend income of$0.7 billion.
- In the first quarter, Compass, Zymergen, Full Truck Alliance, and DiDi were listed.
 SVF2- Held 91 investments (including seven listed portfolio companies) as of the first quarter-end at cost
totaling $19.8 billion, with the fair value amounting to $23.8 billion.
- SBG increased its committed capital to $40 billion, of which $21.5 billion has been contributed to date.
- In the first quarter, JD Logistics, Zhangmen, Full Truck Alliance, and Dingdong were listed.
Note:
1. Cumulative gross gain is before deducting third-party interests, tax, and expenses.

OVERVIEW
Segment results mainly include the results of the investment and operational activities of SoftBank Vision Fund 1(SVF1) and SoftBank Vision Fund 2 (SVF2). The funds are managed by SBIA, a wholly owned subsidiary of theCompany established in the U.K., which is authorized and regulated by the Financial Conduct Authority.
SVF1 aims to maximize returns from a medium- to long-term perspective, through large-scale investments inhigh-growth-potential companies leveraging AI, particularly in private companies valued at over $1 billion at thetime of investment, colloquially known as “unicorns.” SVF1’s investment period ended on September 12, 2019.
The remaining undrawn capital is reserved for follow-on investments in existing portfolio companies (including
investments in joint ventures with them), fixed distributions, and operating expenses. In principle, the life of SVF1
is until November 20, 2029 (unless extended for two additional one-year periods by SBIA).

15

SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2021

SVF2 launched in October 2019 with committed capital from SBG, aiming to facilitate the continued acceleration of the AI revolution through investment in market-leading, tech-enabled growth companies across vintage
years. As of the first quarter-end, SBG is the sole limited partner investing in SVF2, with a total committed capitalof $40 billion.
In addition, to bridge the Company’s private and public investing strategies by enabling it to potentially pursue
a wider range of investment opportunities beyond the investment mandate for the private funds, SBIA US makes
investments through Special Purpose Acquisition Companies (SPACs). The SPACs controlled by SBIA US, specifically SVF Investment Corp., SVF Investment Corp. 2, and SVF Investment Corp. 3, were listed on the Nasdaq
in January, March, and March 2021, respectively, and such SPACs aim to complete their business combinations
within two years from the closing of each offering. After such business combinations, SBIA US expects to cease
control of the combined companies.
Outline of principal funds in the segment
As of June 30, 2021
SoftBank Vision Fund 1

SoftBank Vision Fund 2

SoftBank Vision Fund L.P.

SoftBank Vision Fund II-2 L.P.

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

40.0
The Company: 40.0

Investment period

Ended on September 12, 2019

Minimum fund life

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

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

SVF II GP (Jersey) Limited(The Company’s wholly owned overseas subsidiary)Note:
1. The Company’s committed capital to SVF1 includes approximately $8.2 billion of an obligation satisfied by using Arm shares(all said shares have been contributed) and $2.5 billion earmarked for purposes of an incentive scheme related to SVF1.
For a complete list of SVF1 and SVF2’s portfolio companies, see the Data Sheets in “Materials” under “Earnings Results Briefing” to be posted in a few days on the Company’s website at https://group.softbank/en/ir/presentations/.

16SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2021

Capital deployment
As of June 30, 2021
SVF1

Committed capital (A)Drawn capital5 (B)Return of capital (non-recallable) (C)Outstanding capital (D) = (B) – (C)Remaining committed capital (E) = (A) – (B)Total

The Company(Billions of U.S. dollars)
Third-party investors

98.6
86.3
17.9
68.4
12.3

33.1
29.6
2.3
27.3
3.5

65.5
56.7
15.6
41.1
8.8

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

SVF2
(Billions of U.S. dollars)
Total (The Company)

Committed capital (A)Drawn capital (B)Return of capital (non-recallable) (C)Outstanding capital (D) = (B) – (C)Remaining committed capital (E) = (A) – (B)

40.0
21.5
0.9
20.6
18.5

Note: Remaining committed capital includes recallable return of capital.

5 Drawn capital of SVF1 excludes the amount repaid to limited partners due to investment plan changes and other reasons after thecapital was drawn.

17

SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2021

FINANCIAL RESULTS(Millions of yen)Three months ended June 30
2020
2021
Gain on investments at SVF1, SVF2,
and others*1
Realized gain on investments
Unrealized gain (loss) on valuation of
investments
Change in valuation for the fiscal year
Reclassified to realized gain recorded in
the past fiscal year*2
Dividend income from investments
Derivative gain (loss) on investments
Effect of foreign exchange translation
Selling, general and administrative expenses
Finance cost
Change in third-party interests in SVF1
Other loss
Segment income (income before income tax)

ChangeChange %296,577
111,425

391,562
406,642

94,985295,21732.0%
264.9%

A

178,114
258,056(23,164)
429,989(201,278)
171,933

66.6%(79,942)
2,888
815
3,335
(14,342)(4,600)(147,643)(362)
129,630(453,153)
20,812(3,434)(9,294)(16,449)(4,101)(134,093)(1,369)235,550(373,211)
17,924(4,249)(12,629)(2,107)499
13,550(1,007)
105,920620.7%
14.7%(10.8%)(9.2%) B
81.7%

Notes:
1. Since Arm is a subsidiary of the Company, unrealized gain and loss associated with the change in valuation on SVF1’s holdingsof Arm, as well as dividends income received from Arm (which includes shares of Treasure Data, Inc. received as dividends inkind), are included in segment income as “gain (loss) on investments at SVF1, SVF2, and others,” but are eliminated in consolidation and not included in “gain (loss) on investments at SVF1, SVF2, and others” in the Condensed Interim Consolidated Statement of Income.
2. Unrealized gain on valuation of investments recorded in prior fiscal years related to the investments realized in the fiscal year isreclassified as “realized gain on investments.”

In the first quarter, SVF1 made a new investment and follow-on investments totaling $2.1 billion1 and sold all of
its shares in one portfolio company and a portion of its shares in six portfolio companies for a total of $5.8 billion,1,6of which the initial acquisition costs were $3.0 billion. SVF2 made new and follow-on investments totaling $13.5
billion.
Segment income
A Gain on investments at SVF1, SVF2, and others: ¥391,562 million
ꞏ SVF1- Realized gain on investments (net) of ¥309,680 million was recorded as a result of the sale1 by SVF1 of allof its shares in one portfolio company and a portion of its shares in six listed portfolio companies including
DoorDash, Uber, and Guardant Health.
- Unrealized gain on valuation of investments held by SVF1 at the first quarter-end was ¥380,874 million($3,462 million, net) (see “SVF1” under “Investment performance” below for a breakdown). Valuation gain(net) totaling $1,808 million for listed portfolio companies was recorded due to the strong share price performances of DiDi and Full Truck Alliance, which were listed in the first quarter, and DoorDash, more than

6 After deducting transaction fees, etc.

18SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2021

offsetting the weak share performance of some listed portfolio companies, particularly Coupang. In addition,
valuation gain (net) totaling $1,654 million was recorded for unlisted portfolio companies primarily due toincreases in the fair values of investments where exits or listings are expected.
- Dividend income from investments of ¥20,812 million was recorded mainly as Arm distributed the shares ofTreasure Data, Inc. to SVF1 in the form of dividends in kind.
ꞏ SVF2- Realized gain on investments of ¥96,962 million was recorded as a result of the partial sale of KE Holdings.
- Unrealized gain on valuation of investments was ¥49,115 million ($446 million, net) (see “SVF2” under“Investment performance” below for a breakdown). Valuation loss (net) of $322 million for listed portfolio
companies was recorded, reflecting the share price decreases of KE Holdings and Seer despite the share priceincreases of Full Truck Alliance and Dingdong following their listings in the first quarter. On the other hand,
valuation gain (net) totaling $769 million was recorded for unlisted portfolio companies, mainly as a resultof increases in the fair values of investments that had new funding rounds.
B

Change in third-party interests in SVF1: ¥(134,093) million

This indicates the sum of distributions to third-party investors in proportion to their interests in fixed distributions
and performance-based distributions, which are based on the gain and loss on investments at SVF1, net of management and performance fees payable to SBIA, and operating and other expenses of SVF1. For details, see “(2)Third-party interests in SVF1” under “4. SVF1 and other SBIA-managed funds business” in “(6) Notes to Condensed Interim Consolidated Financial Statements” in “3. Condensed Interim Consolidated Financial Statements
and Primary Notes.”
As of the first quarter-end, SVF2 had only one investor, SBG, and no third-party interests.
Investments transferred from the Company to SVF2
The Company transferred the investments shown below to SVF2 to date through sale or in-kind contribution.
Transfer month
Berkshire Grey, Inc.
Cybereason Inc.
InMobi Pte. Ltd.
Treasure Data, Inc.

Transfer method

March 2021
June 2021
June 2021
June 2021

In-kind contribution
In-kind contribution
Sale
Sale

Total of four investments(Millions of U.S. dollars)
Transfer value
by the Company to SVF2

115
317
597
519
1,548

Note: The value of investments transferred from the Company to SVF2 is based on either the Company’s carrying amount as of thequarter-end immediately prior to the transfer date if the transfer is made by in-kind contribution, or on fair value as of thequarter-end immediately prior to the transfer date if the transfer is made by a sale. Investment gain or loss that occurred prior
to the transfer is recorded in the reportable segment to which the investment belonged prior to the transfer.

19SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2021

Investment performance
As of June 30, 2021

SVF1

(Billions of U.S. dollars)

Total ((1) + (2) + (3) + (4) below)
Cumulative
number ofinvestments
95

Cumulative
investment
cost
87.8

Cumulative
investment
return146.1

Cumulative
gain*1
58.3(Reference)
Cumulative
Cumulative
Cumulative
number ofinvestment
investment
investments
cost
returnEffects of share exchanges
(2)
(1.7)
(1.7)
Uber Advanced Technologies Group and Aurora Innovation Inc.
PT Tokopedia and GoTo
Effects of dividend in kind
(1)
(0.2)
(0.2)
Treasure Data, Inc.
Net of effects of shareexchanges and dividend
in kind*2, 3
92
85.9
144.2

Cumulative
gain*1
0.0
0.0

58.3

(1) Investments before exit (investments held at the first quarter-end)

Listed companies
Unlisted companies
Total

Number ofinvestments
15
67
82

Investment
cost
26.1
47.9
74.0

Fair value
66.4
53.7
120.1

Cumulative
unrealized
valuation gain*4
40.3
5.8
46.1

Unrealized
valuation gainrecorded for the
fiscal year
Q1
1.8
1.7
3.5

Cumulative
realized gain*1
4.9
5.1
10.0

Realized gainrecorded for the
fiscal year
Q1
2.6
0.2
2.8

Cumulative
derivative gain
1.5

Derivative gainrecorded for the
fiscal year
Q1
0.0

Cumulative
income0.7

Dividend income
recorded for the
fiscal year
Q1
0.2(2) Exited investments

Partial exit
Full exit*5
Total

Number ofinvestments
13
13

Investment
cost
4.5
9.3
13.8

Sale price
9.4
14.4
23.8

(3) Derivative gain and loss relating to investment

Total (settled)

Derivative cost
0.0

Fair value /settlement
price
1.5

(4) Dividend income from investments
Dividend
income0.7

Total

Notes:
1. Before deducting third-party interests, tax, and expenses
2. For investments in which share exchanges occurred, acquisition costs of new investments and disposal prices (sale prices) of investments initially held are deducted for the purpose of presenting the cumulative net investment performance. Similarly, for investment
acquired through dividends in kind, acquisition cost of the investment and dividend income are deducted.
3. In addition to the share exchanges listed above, SVF1 exchanged all shares in two portfolio companies for shares in their affiliated companies, which are also existing portfolio companies. Acquisition costs and disposal prices (sale prices) of these investments are also deducted in this section.
4. For a certain investment that was once decided to be transferred from the Company to SVF1 but later canceled, its unrealized
gain and loss incurred for the period leading up to the decision to cancel the transfer is not included in the presentation.
5. Includes disposal (sale) through share exchanges

20SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2021

SVF2
(Billions of U.S. dollars)

Total ((1) + (2) + (3) + (4) below)
Cumulative
number ofinvestments
91

Cumulative
investment
cost
20.2

Cumulative
investment
return25.0

Cumulative
gain*1
4.8(1) Investments before exit (investments held at the first quarter-end)

Listed companies
Unlisted companies
Total

Number ofinvestments
7
84
91

Investment
cost*2
2.5
17.3
19.8

Fair value*2
5.8
18.0
23.8

Cumulative
unrealized
valuation gain
3.3
0.7
4.0

Unrealized
valuation gain
(loss) recorded
for the fiscal
year
Q1
(0.3)
0.7
0.4

Sale price
1.2
1.2

Cumulative
realized
gain*10.8
0.8

Realized gainrecorded forthe fiscal year
Q1
0.9
0.9

Cumulative
derivative loss
(0.0)

Derivative loss
recorded for the
fiscal year
Q1
(0.0)

Cumulative
income0.0

Dividend income recorded
for the fiscal
year
Q1
0.0

(2) Exited investments

Partial exit
Total

Number ofinvestments-

Investment
cost
0.4
0.4

(3) Derivative gain and loss relating to investment

Total

Derivative cost
0.0

Fair value(0.0)(4) Dividend income from investments

Dividend
income0.0

Total

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

21

SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2021

(Reference) Investments before exit (investments held at the first quarter-end)
As of June 30, 2021

SVF1
(Billions of U.S. dollars)

Number of
Sectorinvestments Investment costa Consumer
12
10.8
b Edtech10.7
c Enterprise8
1.8
d Fintech11
4.3
e Frontier Tech9
11.1
f Health Tech8
2.0
g Logistics
14
8.4
h Proptech
910.2
i Transportation
10
24.7
Total
82
74.0
(Reference)
Listed companies*1
15
26.1
a Coupang
2.7
d OneConnect
0.1
d ZhongAn Insurance
0.2
e Zymergen
0.4
f Guardant Health
0.0
f Relay Therapeutics
0.3
f Vir Biotechnology
0.2
g DoorDash
0.6
g Full Truck Alliance
1.7
h Compass1.1
h Opendoor
0.4
h View
1.1
i AUTO1
0.7
i DiDi12.1
i Uber4.5
67
47.9
Unlisted companies
Total
82
74.0

Fair value
38.3
0.8
2.7
2.7
12.8
3.7
21.7
5.4
32.0
120.1

Cumulative
unrealized valuation gain (loss)
27.5
0.1
0.9
(1.6)
1.7
1.7
13.3
(4.8)
7.3
46.1

Unrealized valuation
gain (loss) recorded
for the fiscal year
Q1
(4.3)
(0.3)
0.6
0.1
1.0
(0.3)
4.8
(0.9)
2.8
3.5

66.4
23.7
0.1
0.1
1.1
0.1
1.0
1.1
9.8
4.0
1.7
1.3
0.5
1.7
13.7
6.5
53.7
120.1

40.3
21.0
(0.0)
(0.1)
0.7
0.1
0.7
0.9
9.2
2.3
0.6
0.9
(0.6)
1.0
1.6
2.0
5.8
46.1

1.8
(4.3)
(0.0)
(0.0)
0.2
(0.0)
0.1
(0.1)
2.6
2.0
(0.6)
(0.3)
0.1
(0.5)
3.2
(0.6)
1.7
3.5

Note:
1. The letter corresponding to the listed companies indicates the sector to which the company belongs. Investments in that sector
are not limited to those listed companies.

22SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2021

SVF2
(Billions of U.S. dollars)

Number ofinvestments Investment cost
Sectora Consumer
21
4.0
b Edtech
5
0.6
21
3.5
c Enterprise8
2.5
d Fintech7
1.0
e Frontier Tech19
1.7
f Health Tech
6
4.5
g Logistics
1
1.1
h Proptech
30.9
i Transportation
Total
91
19.8
(Reference)
Listed companies*1
7
2.5
a Dingdong
0.3
b Zhangmen
0.1
e Qualtrics
0.0
f Seer0.2
g Full Truck Alliance
0.2
g JD Logistics
0.6
h KE Holdings
1.1
84
17.3
Unlisted companies
Total
91
19.8

Fair value
4.3
0.7
3.6
2.2
1.1
1.7
4.8
3.9
1.5
23.8

Cumulative
unrealized valuation gain (loss)
0.3
0.1
0.1
(0.3)
0.1
0.0
0.3
2.8
0.6
4.0

Unrealized valuation
gain (loss) recorded
for the fiscal year
Q1
0.3
0.0
0.1
0.0
0.0
(0.0)
0.3
(0.8)
0.5
0.4

5.8
0.5
0.1
0.0
0.2
0.5
0.6
3.9
18.0
23.8

3.3
0.2
0.0
0.0
(0.0)
0.3
0.0
2.8
0.7
4.0

(0.3)
0.2
0.0
0.0
(0.1)
0.3
0.0
(0.7)
0.7
0.4

Note:
1. The letter corresponding to the listed companies indicates the sector to which the company belongs. Investments in that sector
are not limited to those listed companies.

23

SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2021

(c) SoftBank Segment
Segment income increased 4.5% yoy as the increased income mainly in the enterprise business and thepositive effect of the consolidation of LINE Corporation more than offset a decrease in income in the
consumer business.
(Millions of yen)Three months ended June 30
2020
2021
Net sales
Segment income (income before income tax)
Depreciation and amortization
Gain on investments
Finance cost
Income (loss) on equity method investments*1
Derivative gain (loss)(excluding gain (loss) on investments)

ChangeChange %1,172,322
259,249

1,356,570
270,954

184,248
11,70515.7%
4.5%(173,134)
4,116(16,256)(9,006)(184,340)
15,262(15,553)(12,339)(11,206)
11,146703(3,333)6.5%
270.8%(4.3%)
-

1

(99)

(100)

-

Note:
1. Includes loss on equity method investments related to PayPay Corporation of ¥5,800 million for the first quarter and ¥7,954
million for the same period of the previous fiscal year. At SoftBank Corp., PayPay Corporation is classified as an equity method
associate; however, PayPay Corporation has consistently been classified as a subsidiary of SBG since its founding in June 2018
and its financial results are included in “Other.” For this reason, loss on equity method investments related to PayPay Corporation recognized in the SoftBank segment is eliminated in “Reconciliations” in segment information.

FINANCIAL RESULTS
Segment income increased ¥11,705 million (4.5%) year on year to ¥270,954 million, reflecting increased income
mainly in the enterprise business and the positive impact of the consolidation of LINE Corporation, which morethan offset a decrease in income in the consumer business.
Income decreased in the consumer business, reflecting a decrease in mobile revenue, the largest source of revenue and profit, mainly due to an increase in smartphone users switching from SoftBank brand to Y!mobile brandcontracts. Income in the enterprise business increased due to an increase in mobile revenue following growth indemand for remote working, along with an increase in sales of cloud services and security solutions as the digitization of enterprises accelerates. Income also increased at Z Holdings Corporation, mainly due to the positive
impact of consolidating LINE Corporation in March 2021, as well as recording gain on revaluation of an investeethat was removed as an associate, and an increase in gain on investments associated with an increase in the fairvalues of investees.
For more information on SoftBank Corp.’s financial results and business operations, please refer to its website athttps://www.softbank.jp/en/corp/ir/.

24

SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2021(d) Arm Segment
1. Arm reported highest-ever quarterly revenues, resulting in positive segment income.
 Net sales increased 60.9% yoy.
- Technology royalty revenue increased 31.6% yoy (U.S. dollar-based) due to record chip sales, andArm’s customers benefiting from both market share gains and higher chip prices.
- Technology non-royalty revenue increased 106.8% yoy (U.S. dollar-based) due to the availability ofArm’s newly developed products combined with increased design activity at Arm’s customers which
resulted in more licenses being signed.
 Positive segment income for the first time since the quarter ended March 2017 due to strong revenue
growth (excluding a period when a one-time gain was recorded). Arm’s investments in R&D, that
resulted in the segment losses in prior years, are now driving the segment income gains.
2. Arm continues to expand its product portfolio.
 In the first quarter, Arm introduced three new processors based on Armv9 and three new graphics
processors, all targeting the smartphone and mobile computing segment. It is expected that theseprocessors will start to appear in next-generation mobile devices in 2022.
(Millions of yen)Three months ended June 30
2020
2021
Net sales
Segment income (income before income tax)

46,175(6,547)

74,2788,781

ChangeChange %28,103
15,32860.9%-

Notes:
1. Since the fourth quarter of the previous fiscal year, the Internet-of-Things Services Group (ISG) business is managed separatelyfrom the Arm business and its results are therefore included in “Other” instead of the Arm segment.
2. Segment income included amortization expenses of ¥12,472 million for the first quarter and ¥12,215 million for the same periodof the previous fiscal year. These expenses are related to intangible assets recognized in the purchase price allocation at the timeof the acquisition of Arm.

OVERVIEW
Arm’s operations primarily consist of licensing of semiconductor intellectual property (IP), including the designof energy-efficient microprocessors and associated technologies. Arm has accelerated investment in R&D by hiring more engineers. With the expansion of its engineering capability, Arm can develop new technologies that will
help it maintain or increase its share of the existing markets and expand into new markets.
Industry trends and their impact
Semiconductor industry trends can have a significant impact on Arm’s financial results, both positively and negatively. The industry is vulnerable to external factors, including trade disputes and sanctions against specific companies, as well as the impact from changes in economic activity caused by COVID-19. If shipments of consumer
electronic devices weaken, it may lead to lower technology royalty revenue, and if customers facing reduced revenues choose to delay licensing decisions, it may lead to lower technology non-royalty revenue. Conversely, Arm
benefits during periods of industry expansion as royalty revenue grows with industry sales, and technology nonroyalty revenue (technology licensing revenue and software and services revenue) can increase as design activity
accelerates. However, it is difficult to anticipate when these events may occur and the impact on the whole semiconductor industry or Arm.

25

SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2021

Arm is expecting that, as consumer and enterprise electronics become more advanced, its technology will befurther utilized and opportunities will expand over the long term.
FINANCIAL RESULTS
Net sales in U.S. dollars
Net sales in this section are presented in U.S. dollars as Arm’s revenue is primarily based in U.S. dollars.
(Millions of U.S. dollars)

Three months ended June 30
2020
2021

ChangeChange %Technology royalty
Technology non-royalty

282
147

371
304

89
157

31.6%
106.8%

Total net sales

429

675

246

57.3%

Net sales increased $246 million (57.3%) year on year due to increases in both technology royalty revenue andtechnology non-royalty revenue.
Technology royalty revenue
Technology royalty revenue increased $89 million (31.6%) year on year. Royalty revenues were driven by thestrong ramp in shipments of Arm-based 5G smartphones and the deployment of networking equipment into 5Gbase stations, and Arm’s customers gaining share in multiple markets such as automotive and servers. In addition,
Arm’s customers are benefitting from the very high demand for computer chips by increasing pricing, and as Arm’s
royalty revenue is often based on the price of the chips, Arm is also benefiting from higher chip prices.
Technology non-royalty revenue
Technology non-royalty revenue increased $157 million (106.8%) year on year. This increase is primarily due tothe availability of more Arm technology following the period of accelerated R&D spending since Arm has beenacquired by the Company. Over the past few years, Arm has increased investment in R&D, which has now resulted
in a product portfolio that has expanded the breadth of Arm technology to include processors optimized for servers,
automotive electronics, and AI acceleration. This has led to a wider range of customers licensing Arm technology,
as well as existing customers having more Arm technology to choose from, both of which are helping to drive
licensing revenues. This included licenses for processors used by customers intending to build Arm-based server
chips, smartphones, networking equipment and for autonomous systems such as industrial robotics and self-driving vehicles. In addition, over the past year, strong industry demand for Arm-based chips has encouraged Arm’s
customers to invest in new R&D projects to develop more chips and therefore increased demand for Arm processor
licenses. Furthermore, the same period of the previous fiscal year saw a decrease in design activity and licensing
as the industry was adjusting to the start of the COVID-19 pandemic.

26

SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2021

Segment income
Segment income was ¥8,781 million, improving by ¥15,328 million year on year. This was mainly due to Arm’s
strong revenue growth exceeding the increase in costs that were mainly in line with headcount growth.
As Arm continues to enhance its R&D capabilities by hiring more employees, mainly technology-related personnel, the number of Arm employees at the first quarter-end increased 2.0% from the previous fiscal year-end.
OPERATIONSRoyalty units7(Billion)

Three-month period ended March 31
2020
2021
Royalty units as reported by Arm’s licensees

5.4

6.8

ChangeChange %

1.4

25.9%

Arm’s licensees reported shipments of 6.8 billion Arm-based chips shipped in the three-month period ended March
31, 2021. Arm’s unit shipments increased 25.9% year on year, while shipments by the Arm-relevant part of thesemiconductor industry increased 11.4%8 during the same period.

7 This analysis is based on the actual shipments of royalty units (chips incorporating Arm technology) by Arm licensees for the period
from January 1 to March 31, 2021, as reported by licensees in royalty reports. Arm’s licensees report their actual shipments of royalty units one quarter in arrears; therefore, the current quarter’s royalty unit analysis is based on chips shipped in the prior quarter. In
contrast, technology royalty revenues are accrued in the same quarter the chips are shipped, based on estimates.
8 World Semiconductor Trade Statistics (WSTS) as of July 2021. Excludes memory and analog chips, which do not contain processor
technology. This data is compiled on the basis of data submitted by semiconductor companies participating in the survey.

27

SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2021

TECHNOLOGY DEVELOPMENT
Arm considers the following as its primary areas for increased investment and is evolving the technology in both
its mobile business and other businesses with strong growth potential.
Arm’s primary investment areas and main developments
Mobile computing
Opportunity:
The first quarter:

Infrastructure
Opportunity:

The first quarter:

Automotive
Opportunity:

The first quarter:

IoT
Opportunity:

The first quarter:

Arm already has over 95% share of the main chips in mobile devices and, over time,
has been successfully increasing royalties per chip.
Arm introduced three new processors, Cortex-X2, Cortex-A710, and Cortex-A510,
based on Armv9, and three new graphics processors, Mali-G710, Mali-G510, andMali-G310, all targeting the smartphone and mobile computing segment.
Arm has a growing share in networking infrastructure and a nascent share in data center servers.
ꞏ Supercomputer Fugaku with Arm technology for servers, jointly developed by
RIKEN and Fujitsu Limited, has retained its number one ranking in the TOP500, a
global ranking based on calculation speed of supercomputers.
ꞏ Oracle Corporation announced that Oracle Cloud Infrastructure will include Armbased servers using chips from Ampere Computing LLC.
ꞏ NVIDIA Corporation and Marvell Technology, Inc. separately announced new 5G
networking infrastructure chips based on Arm processor technology.
As vehicles become smarter, they require more computational capability. Arm iswell-positioned to gain share by providing energy efficiency and Arm processor technology has already been licensed by most companies that develop automotive chips.
Arm and leading automotive companies and technology providers, including Audi
AG, DENSO CORPORATION, and NXP Semiconductors N.V., have started a newcollaboration to create standards for self-driving vehicles.
For IoT to reach its full potential, it must be secure against hacking and robust against
faults. Arm has developed technology to secure and manage the data in IoT device
networks.
Arm announced an initiative to help reduce the time to develop software for Armbased microcontrollers by enabling more code-reuse and code-sharing between developers.

28

SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2021

Entry into agreement for sale of all shares in Arm
On September 13, 2020 (U.S. time), SBGC, a wholly owned subsidiary of the Company, and SVF1 entered into a Share
Purchase Agreement (the “Purchase Agreement”) with NVIDIA Corporation (“NVIDIA”), a U.S.-based semiconductor
manufacturer, whereby the Company will sell all of the shares in its wholly owned subsidiary Arm held by SBGC and
SVF1 to NVIDIA in a transaction valued up to $40 billion (the “Transaction”). The Transaction is subject to regulatory
approvals (including those of the U.K., China, the European Union, and the U.S.) and other closing conditions. The
Transaction is expected to take approximately 18 months to close following the execution of the Purchase Agreement.
The ISG businesses are outside the scope of the Transaction.
Upon the closing of the Transaction, Arm will cease to be a subsidiary of the Company and will no longer be consolidated into the Company’s financial results; however, Arm will continue to be classified under continuing operations in
the Company’s consolidated financial statements until the closing of the Transaction is deemed highly probable. Upon
closing of the Transaction, SBGC and SVF1 expect to receive in the aggregate approximately 6.7-8.1% of outstanding
NVIDIA shares (excluding treasury shares), depending on the final amount of the earn-out, if any (as discussed below).
NVIDIA is not expected to become a subsidiary or an associate of the Company following the completion of the Transaction.
A breakdown of the transaction value is presented below.
(Billions of U.S. dollars)

Transaction value(1) Cash(2) NVIDIA shares

12.0

21.5
(44.37 million shares*3)(3) Earn-out
Up to 5.0
(cash or NVIDIA shares) (or 10.32 million shares*3)
Total consideration for
the Company(a) 2.0

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

Upon closing
Upon closing
Upon closing; subject to satisfactionof specific financial performancetargets of Arm

Up to 38.5

(4) NVIDIA share compensation for Arm employees
TotalTime of receipt

1.5

Upon closing; to be received by Arm
employees

Up to 40.0

Notes:
1. The consideration described in (1), (2) and, if any, (3) will be allocated to SBGC and SVF1 in accordance with their respective
ownership ratios of Arm shares (75.01% to SBGC and 24.99% to SVF1). The proceeds received by SVF1 will be further allocated to SVF1’s limited partners, including the Company, based on a designated waterfall.
2. Transaction value of (2) and (3) is calculated based on NVIDIA shares with a price of $484.6007 per share (the average of the daily closing prices of NVIDIA common stock for the 30 consecutive trading days ended September 10, 2020, rounded up to four decimal points).
If (2) and (3) (in case of receiving the consideration in the form of NVIDIA shares) are calculated based on the closing price of
NVIDIA common stock on June 30, 2021 ($800.10), the maximum consideration for the Company would be $55.8 billion.
3. The number of shares before NVIDIA’s stock split on July 20, 2021

(1) $12.0 billion in cash(a) $2.0 billion
Upon the execution of the Purchase Agreement on September 13, 2020, SBGC and Arm received cash totaling $2.0
billion. Of this amount, $1.25 billion was received as a deposit for part of the consideration in the Transaction(refundable to NVIDIA subject to certain conditions until the closing of the Transaction, after which such amountwill become non-refundable) and $0.75 billion was received by Arm as consideration for a license agreement that29SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2021

Arm and NVIDIA entered into concurrently with the execution of the Purchase Agreement.
(b) $10.0 billion
Upon the closing of the Transaction, SBGC and SVF1 will receive cash totaling $10.0 billion.
(2) $21.5 billion in NVIDIA shares (44.37 million shares)
Upon the closing of the Transaction, SBGC and SVF1 will receive 44,366,423 shares of NVIDIA common stock,which is before NVIDIA’s stock split on July 20, 2021 and was determined based on a price of $484.6007 per share(the average of the daily closing prices of NVIDIA common stock for the 30 consecutive trading days ended September
10, 2020, rounded up to four decimal points). Of the NVIDIA common stock to be received, 2,063,554 shares will be
subject to escrow to satisfy certain indemnification obligations of SBGC and SVF1 as set out in the Purchase Agreement.
The shares received will be recorded at their fair value at the closing of the Transaction as financial assets at FVTPL,
and thereafter changes in their fair value will be recognized as net income or loss at the end of each quarter.
(3) Earn-out up to $5.0 billion (cash or 10.32 million NVIDIA shares)
An earn-out of up to $5.0 billion in cash or up to 10,317,772 shares of NVIDIA common stock, which is the numberof shares before NVIDIA’s stock split on July 20, 2021, (based on a price of $484.6007 per share, being the averageof the daily closing prices of NVIDIA common stock for the 30 consecutive trading days ended September 10, 2020
(rounded up to four decimal points)) is payable to SBGC and SVF1 subject to the satisfaction of certain financial
performance targets for each of revenue and EBITDA of Arm (in each case subject to certain adjustments and excluding
any amounts attributable to the ISG businesses) during the fiscal year ending March 31, 2022 as set out in the Purchase
Agreement. If Arm’s financial performance exceeds the agreed floors but does not meet such targets, the earn-out will
be prorated. If Arm’s financial performance does not meet such floors, the earn-out will not be payable.
If SBGC and SVF1 elect to receive the earn-out in the form of NVIDIA shares, the fair value of those shares will berecorded as financial assets at FVTPL upon the closing of the Transaction, and thereafter changes in their fair value
will be recognized as net income or loss at the end of each quarter.
(4) NVIDIA stock awards representing $1.5 billion to be granted to Arm employees
Upon the closing of the Transaction, Arm employees will receive $1.5 billion in NVIDIA stock awards from NVIDIA.

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

30

SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2021(e) Latin America Fund Segment(Millions of yen)Three months ended June 30
2020
2021

ChangeChange %Gain on investments

23,281

219,368

196,087

842.2%

Unrealized gain on valuation of investments
Derivative gain (loss) on investments
Other
Selling, general and administrative expenses
Finance cost
Derivative loss
(excluding gain (loss) on investments)
Other loss

23,062
219
(950)
(4)

219,236(44)
176(2,020)(203)

196,174(263)
176(1,070)(199)

850.6%
112.7%
-

-

(106)
(680)

(106)
(680)

-

Segment income (income before income tax)

22,327

216,359

194,032

869.1%

Note: SoftBank Latin America Fund has invested in one affiliated SPAC through the SPAC’s sponsor, which is the Company’s
subsidiary in this segment. The operating results of the SPAC, as a subsidiary of the Company, are included in this segment.

OVERVIEW
Segment results includes the results of the investments and operational activities of SoftBank Latin America Fund,which conducts investing activities in Latin America, such as Brazil and Mexico.
FINANCIAL RESULTS
Segment income was ¥216,359 million, reflecting gain on investments of ¥219,368 million due to an increase in
the share price of its listed portfolio company, Banco Inter S.A., and increases in the fair values of its unlisted
portfolio companies such as QUINTOANDAR, LTD. and VTEX. As of the first quarter-end, the fund held 48
investments and had invested a cumulative total of $3.5 billion, with a fair value of $6.9 billion. In addition to theCompany’s committed capital of $5.0 billion in the fund, a co-investment program of employees involved in the
management of the fund has committed $7 million (the program’s interest is deducted as third-party interests) to
the fund.

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

31

SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2021(f) Other(Millions of yen)Three months ended June 30
2020
2021

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

66,427(37,809)54,217
32,848(12,210)70,657(18.4%)-

Depreciation and amortization
Gain (loss) on investments
Finance cost
Income on equity method investments
Derivative gain (loss)(excluding gain (loss) on investments)(13,313)8,453(3,866)
2,809(8,930)(974)(4,105)
2,040

4,383
(9,427)
(239)
(769)

(32.9%)
6.2%(27.4%)

27(3,479)(3,506)-

Note: Since the fourth quarter of the previous fiscal year, the ISG business is managed separately from the Arm business and its
operating results are therefore included in “Other” instead of the Arm segment. In June 2021, all of the shares of Treasure
Data, Inc. in the ISG business were distributed in kind to SVF1 and SBGC in accordance with their ownership ratios of Armshares, and subsequently SBGC sold its portion to SVF2. As a result, SVF1 owned 24.99% and SVF2 75.01% of Treasure
Data, Inc. shares as of the first quarter-end.

Segment income totaled ¥32,848 million. The Company recorded a gain relating to loss of control of Boston
Dynamics, Inc. of ¥72,936 million following the completion of the sale of its shares in the first quarter. See “7.
Disposal group classified as held for sale” under “(6) Notes to Condensed Interim Consolidated Financial
Statements” in “3. Condensed Interim Consolidated Financial Statements and Primary Notes” for details.
Meanwhile, Fortress Investment Group LLC (“Fortress”) and PayPay Corporation recorded losses before
income tax of ¥16,740 million and ¥10,420 million, respectively.
An overview of these results and operations follows.
ꞏ Fortress
Fortress recorded loss on investments of ¥8,777 million due to a decrease in the fair value of certain
investments, resulting in a loss before income tax of ¥16,740 million. In the first quarter, one of the four
SPACs that are subsidiaries of Fortress merged with an operating company and was excluded from the scopeof consolidation.
ꞏ PayPay Corporation
PayPay Corporation, which is engaged in smartphone payment services in Japan, recorded loss before income
tax of ¥10,420 million, mainly reflecting its continued marketing promotions aimed at gaining users anddriving service usage, along with proactive measures to increase the number of stores using its services. Lossbefore income tax decreased year on year, mainly due to higher revenue following an increase in affiliatedstore sales and growth in gross merchandise volume. PayPay Corporation’s payment services continued to see
strong growth, with the number of payments for the first quarter reaching 790 million, a 1.8-fold increase year
on year.
Results of PayPay Corporation included in “Other”(Millions of yen)Three months ended June 30
2020
2021
Net sales
Loss before income taxes

5,667(15,811)32

11,211(10,420)

ChangeChange %

5,544
5,391

97.8%
-

SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2021

(2) Overview of Financial Position

1. Status of investment assets
 Carrying amount of investments from SVF1 and SVF2 of ¥14,792.2 billion, an increase of ¥1,145.4
billion from the previous fiscal year-end*1- SVF1: Decreased by ¥181.3 billion from the previous fiscal year-end mainly due to the partial sale ofinvestments.
- SVF2: Increased by ¥1,326.7 billion from the previous fiscal year-end mainly due to active new investments.
 Carrying amount of investment securities of ¥4,351.7 billion, an increase of ¥644.9 billion from theprevious fiscal year-end- SBG and its subsidiaries: Fair value of T-Mobile shares increased by ¥227.9 billion.
- SoftBank Latin America Fund: Carrying amount of investments increased by ¥310.3 billion from theprevious fiscal year-end.
 Holdings of stocks, etc. at asset management subsidiaries decreased from ¥2.2 trillion at theprevious fiscal year-end to ¥1.5 trillion.
- Carrying amount of investments from asset management subsidiaries was ¥790.6 billion (increased¥35.3 billion from the previous fiscal year-end).
- Carrying amount of securities pledged as collateral in asset management subsidiaries was ¥687.5 billion (decreased ¥739.8 billion from the previous fiscal year-end).
2. Procured Funds to meet funding demand for debt repayment and new investments, including
issuance of domestic hybrid bonds of ¥405.0 billion: Interest-bearing debt at SBG increased ¥1,109.1
billion from the previous fiscal year-end.
3. Retired 366,860 thousand treasury stock, equivalent to 17.6%9 of the total number of issued shares
before retirement (the same as the number of shares acquired from March 2020 to May 2021). The
carrying amount of ¥2,475.8 billion was deducted from retained earnings.
Note:
1. Investments from SVF1 and SVF2 do not include their investments in the Company’s subsidiaries or investments that are transferred from the Company to the funds and are continued to be accounted for using equity methods (and included in “investments
accounted for using the equity method”) prior to and after the transfer.

(Millions of yen)March 31, 2021

June 30, 2021

ChangeChange %Total assets

45,750,453

47,185,597

1,435,144

3.1%

Total liabilities

33,794,860

34,694,490

899,630

2.7%

Total equity

11,955,593

12,491,107

535,514

4.5%

9 Proportion to the total number of issued shares as of April 30, 2021

33

SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2021

(a) Assets(Millions of yen)March 31, 2021

June 30, 2021

ChangeCash and cash equivalents

4,662,725

4,980,062

317,337

Trade and other receivables

2,216,434

2,152,451(63,983)

Investments from asset
management subsidiaries

658,227

609,081(49,146) A

Securities pledged as collateral inasset management subsidiaries

1,427,286

687,457(739,829) B

Derivative financial assets inasset management subsidiaries

188,056

254,143

66,087

1,055,222

798,423(256,799) D

Inventories

126,830

119,902(6,928)Other current assets

446,739499,835

53,096

Assets classified as held for sale38,647-

Total current assets

10,820,166

10,101,354(718,812)

Property, plant and equipment

1,668,578

1,764,663

96,085Right-of-use assets

1,147,020

1,082,133(64,887)

Goodwill

4,684,419

4,691,625

7,206

Intangible assets

2,308,370

2,267,690(40,680) F

246,996

265,972

18,976

Investments accounted for using theequity method

4,349,971

4,498,256

148,285

G

Investments from SVF1 and SVF2
accounted for using FVTPL

13,646,774

14,792,184

1,145,410

HSVF1

12,403,286

12,221,998(181,288)

SVF2

1,243,488

2,570,186

1,326,698

3,706,784

4,351,725

644,941I

908,660

987,267

78,607J

Other financial assets

1,919,262

2,069,561

150,299

K

Deferred tax assets

206,069

168,367(37,702)

Other non-current assets

137,384

144,800

7,416

Total non-current assets

34,930,287

37,084,243

2,153,956

Total assets

45,750,453

47,185,597

1,435,144

Other financial assets

Costs to obtain contracts

Investment securities
Derivative financial assets

34C(38,647) E

SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2021

Reasons for changes by primary component
Components
Current assets
A Investments from asset management subsidiaries

Main reasons for changes from the previous fiscal year-end
Listed stocks held by SB Northstar decreased mainly due to sales.

B Securities pledged as collateralin asset management subsidiaries

Securities pledged as collateral decreased due to SB Northstar’s sale ofinvestments and repayment of collateralized debt obligations.

C Derivative financial assets inasset management subsidiaries

The fair values of long call options of listed stocks held by SB Northstar
increased.

D Other financial assets

In conjunction with the early termination and repayment in April 2021 of
a portion of the collar contract out of the prepaid forward contracts using
Alibaba shares, the ¥361,355 million recorded as restricted cash related tothe contract termination at the previous fiscal year-end decreased. See“Note 1” under “(1) Components of interest-bearing debt” in “9. Interestbearing debt” in “(6) Notes to Condensed Interim Consolidated Financial
Statements” in “3. Condensed Interim Consolidated Financial Statements
and Primary Notes” for details.
In addition, other financial assets increased by ¥143,332 million, reflecting the reclassification from non-current assets of derivative financial assets for the contracts with a remaining term of one year or less.

E Assets classified as held forsale

Boston Dynamics, Inc.’s assets were separately presented in this category
at the previous fiscal year-end in conjunction with the classification of thecompany in the disposal group classified as held for sale; however, theseassets were derecognized following the completion of the sale in the firstquarter.

Non-current assets
F Intangible assets

ꞏ Arm technology decreased due to regular amortization.
ꞏ LINE Corporation’s trademarks and customer relationships decreased
due to the revision of the provisional amount recognized in conjunction
with its business combination with the company.

G Investments accounted for using the equity method

In addition to recording gain on equity-method investments, the consolidated carrying amount for Alibaba increased due to the weaker yen
against the Chinese yuan at the first quarter-end.

H Investments from SVF1 andSVF2 accounted for using
FVTPL

ꞏ At SVF1, the fair value of investments held at the first quarter-end increased, while some investments were sold.
ꞏ SVF2 made new and follow-on investments totaling $13.5 billion, as
well as selling some investments.
For details of the status of investments at SVF1 and SVF2, see “(b) SVF1
and Other SBIA-Managed Funds Segment” under “b. Results by Segment” in “(1) Overview of Results of Operations.”

35

SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2021

Components
I Investment securities

Main reasons for changes from the previous fiscal year-end
ꞏ The fair value of T-Mobile shares increased ¥227,936 million (first quarter-end balance: ¥1,702,292 million).
ꞏ The carrying amount of investments from SoftBank Latin America Fund
increased ¥310,270 million due to an increase in the fair value of portfolio companies, as well as new and follow-on investments (first quarterend balance: ¥751,278 million).
ꞏ The carrying amount of investments in SoFi Technologies, Inc., WeWork, and Lemonade, Inc. increased ¥45,654 million, ¥41,363 million,and ¥21,428 million, respectively, mainly due to increases in the fair values. Furthermore, the shares of InMobi Pte. Ltd. were reclassified to “investments from SVF1 and SVF2 accounted for using FVTPL” upontransfer from the Company’s subsidiary to SVF2.

J Derivative financial assets

ꞏ The fair value of the Contingent Consideration related to T-Mobile
shares increased by ¥197,783 million (first quarter-end balance:¥658,492 million).
ꞏ Of the derivative financial assets related to several prepaid forward contracts using Alibaba shares, assets of ¥143,332 million related to thecontracts with a remaining term of one year or less were reclassified tocurrent assets.

K Other financial assets

ꞏ SB Northstar newly acquired convertible bonds of ¥81,675 million (firstquarter-end balance including the convertible bonds acquired in the previous fiscal year: ¥181,483 million).
ꞏ Long-term loans increased by ¥37,379 million related to unsecured notesof WeWork purchased by the Company’s subsidiary.

36SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2021

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

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

March 31, 2021

June 30, 2021

Change2,202,730
1,948,177

2,063,447
1,720,959(139,283)(227,218)

33,272
221,281

15,790326,698(17,482)
105,417

67,58063,47025,89564,646
319,563
22,161(2,934)
256,093(3,734)

302,539
420,941
861,412718,158

514,431404,976804,694
786,144

211,892(15,965)(56,718)
67,986

4,662,725

4,980,062

317,337

Notes:
1. Includes Yahoo Japan Corporation and LINE Corporation.
2. Includes PayPay Bank Corporation, whose balance of cash and cash equivalents was ¥330,473 million at the first quarter-end.

37

SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2021(b) Liabilities(Millions of yen)March 31, 2021

June 30, 2021

Change7,735,239

8,643,697

908,458

307,447

291,402(16,045)

Deposits for banking business

1,109,240

1,184,013

74,773

Trade and other payables

1,970,275

1,695,139(275,136)

Derivative financial liabilities in asset
management subsidiaries

14,673

14,468(205)

Derivative financial liabilities

322,213279,627(42,586) A

Other financial liabilities

51,28530,089(21,196)

Income taxes payables

391,930

83,030(308,900) B

Provisions

24,93919,740(5,199)Other current liabilities

952,443

703,610(248,833) C

Liabilities directly relating to assets
classified as held for sale

11,271-(11,271) D

Total current liabilities

12,890,955

12,944,815

53,860Interest-bearing debt

10,777,736

11,603,726

825,990

727,554694,936(32,618)

Third-party interests in SVF1

6,601,791

6,450,319(151,472)

Derivative financial liabilities

32,692

49,187

16,495

Other financial liabilities

415,407383,769(31,638)

Provisions

110,586

115,227

4,641

2,030,651

2,275,398

244,747 E

Other non-current liabilities

207,488

177,113(30,375)

Total non-current liabilities

20,903,905

21,749,675

845,770

Total liabilities

33,794,860

34,694,490

899,630

Interest-bearing debt
Lease liabilities

Lease liabilities

Deferred tax liabilities

38SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2021

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

Main reasons for changes from the previous fiscal year-end
With the completion of the tender offer for WeWork shares in April
2021, the Company reversed a derivative financial liability of ¥76,823
million recorded at the previous fiscal year-end as the difference between
the valuation amount of common stock and preferred stock expected tobe acquired and the planned acquisition amount. See “(3) Forward contracts” under “10. Financial instruments” in “(6) Notes to Condensed Interim Consolidated Financial Statements” in “3. Condensed Interim Consolidated Financial Statements and Primary Notes” for details.

B Income taxes payables

SBGJ paid income tax of ¥197,432 million based on taxable income including a gain on sale of shares of SoftBank Corp. generated in the previous fiscal year.

C Other current liabilities

Withholding income tax of ¥245,053 million was paid in relation to dividends paid from SBGJ to SBG in the previous fiscal year.

D Liabilities directly relating toassets classified as held forsale

Boston Dynamics, Inc.’s liabilities were separately presented in this category at the previous fiscal year-end in conjunction with the classificationof the company in the disposal group classified as held for sale; however,these liabilities were derecognized following the completion of the sale in
the first quarter.

Non-current liabilities
E Deferred tax liabilities

Deferred tax liabilities increased at SBG.

39

SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2021

(Reference) Interest-bearing debt and lease liabilities (total of current liabilities and non-current liabilities)
March 31, 2021
SoftBank Group Corp. / Wholly owned
subsidiaries conducting fund procurement*1 /SB Northstar(Millions of yen)
June 30, 2021
Change12,984,650

13,997,677

1,013,027

6,158,350
1,152,934
4,745,549
13,367
246,500

7,267,433
1,838,718
5,152,873
13,042
262,800

1,109,083
685,784
407,324(325)
16,3004,959,779
1,874,040

5,305,735
2,080,230

345,956
206,190

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

3,225,505
1,424,509
1,424,509

139,766(442,012)(442,012)

444,227444,227363
363

444,053444,053
99,27599,275
313
313

(174)
(174)
99,27599,275(50)(50)

SoftBank Corp.
Borrowings
Corporate bonds
Lease liabilities
Commercial paper
Z Holdings Corporation*2
Borrowings
Corporate bonds
Lease liabilities
Commercial paper
Other
Others4,166,323
3,037,229
260,000
706,393
162,701
1,030,980
442,406
543,992
44,582494,747

4,635,959
3,313,246
359,620
671,092
292,001
1,078,395
450,500
544,074
41,32142,500513,030

469,636
276,017
99,620(35,301)
129,300
47,415
8,094
82(3,261)42,50018,283

Other interest-bearing debt
Lease liabilities

334,917
91,769375,687
89,372

40,770(2,397)

19,547,976

21,233,761

1,685,785

SoftBank Group Corp.
Borrowings
Corporate bonds
Lease liabilities
Commercial paper
Wholly owned subsidiaries conducting fundprocurement*1
Borrowings
Financial liabilities relating to sale of shares by
prepaid forward contracts
SB Northstar
Borrowings
SVF1 and Other SBIA-Managed Funds segment
SVF1
Borrowings
SVF2
Borrowings
SBIA
Lease liabilities
SoftBank segment

Total

Notes:
1. The interest-bearing debt of wholly owned subsidiaries conducting fund procurement is non-recourse to SBG, except for that of
Delaware Project 6 L.L.C. The interest-bearing debt of Delaware Project 6 L.L.C. of $4.38 billion is exceptionally guaranteed by
SBG to a limit of $1.99 billion. As a precondition for SBG to fulfill its guarantee obligations, the lenders are obligated to firstrecover the amount to the maximum extent possible from Alibaba shares that have been pledged as collateral.
2. Includes Yahoo Japan Corporation and LINE Corporation.

40

SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2021

Reasons for changes from the previous fiscal year-end at core companies
SBG / Wholly owned subsidiaries conducting fund procurement / SB Northstar
SBG・Short-term borrowings increased by ¥685,364 million, mainly due to a temporary loan of €2.4 billion procuredin June 2021 in conjunction with the issuance of foreign-denominated corporate bonds in July 2021. The loan
was repaid in full in July 2021.
・SBG issued domestic hybrid bonds of ¥405.0 billion.
Wholly owned subsidiaries conducting fund procurement
・Borrowings of $1.88 billion were made using Alibaba shares (margin loan).
・In the prepaid forward contracts using Alibaba shares, a portion of the collar contract of $2.86 billion was terminated early and repaid, after which a new collar contract was concluded to borrow $3.0 billion. See “Note 1.”
under “(1) Components of interest-bearing debt” in “9. Interest-bearing debt” in “(6) Notes to Condensed Interim
Consolidated Financial Statements” in “3. Condensed Interim Consolidated Financial Statements and Primary
Notes” for details.
SB Northstar
・Short-term borrowings decreased by ¥441,946 million following repayments.
SVF1 and Other SBIA-Managed Funds segment
・SVF2 procured $0.9 billion through the borrowing made for the purpose of monetizing a portion of certain listed
investment (the “Portfolio Financing Facility”).
SoftBank segment
SoftBank Corp.
・Borrowings increased mainly due to financing through securitization of receivables.
・Domestic straight corporate bonds totaling ¥100.0 billion were issued.
・Commercial paper increased by ¥129.3 billion
Z Holdings Corporation
・Commercial paper increased by ¥42.5 billion at LINE Corporation.

41

SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2021(c) Equity(Millions of yen)March 31, 2021

June 30, 2021

ChangeCommon stock

238,772

238,772-

Capital surplus

2,618,504

2,601,097(17,407)496,876

496,876-

Retained earnings

8,810,422

7,056,602

Treasury stock(2,290,077)(68,101)

2,221,976

338,329400,299

61,970

267

-

(267)

Total equity attributable to owners of the parent

10,213,093

10,725,545

512,452

Non-controlling interests

1,742,500

1,765,562

23,062

Total equity

11,955,593

12,491,107

535,514

Other equity instruments

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

(1,753,820) A
B

Reasons for changes by primary component
Components
A Retained earnings

Main reasons for changes from the previous fiscal year-end
ꞏ Net income attributable to owners of the parent of ¥761,509 million wasrecorded.
ꞏ ¥2,475,817 million*1 was deducted following the retirement of
366,860,600 treasury stock in May 2021 (equivalent to 17.6% of the total
number of issued shares as of April 30, 2021).

B Treasury stockꞏ The Company repurchased 25,980,400 of its own shares for ¥257,777 million from April 1 to May 12, 2021 in accordance with a Board resolution
on July 30, 2020.
ꞏ The Company retired treasury stock in May 2021

Note:
1. The number of shares retired is the same as the number of shares acquired from the share repurchase (the “Share Repurchase”)
conducted in accordance with respective resolutions of the Board of Directors in March, May, June, and July 2020. However,since the retirement amount is calculated based on the carrying amounts, including the treasury stock held by the Company prior
to the Share Repurchase, the retirement amount differs from the total repurchase amount of the Share Repurchase.

42SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2021

(3) Overview of Cash Flows

1. Investing activities
 SVF1 and SVF2
- Investment
ꞏ Payments for acquisition of investments of ¥1,401.9 billion (cash flows from investing activities)- Monetization
ꞏ Proceeds from sale of investments of ¥646.7 billion (cash flows from investing activities)
ꞏ Proceeds of ¥99.0 billion from partial monetization of certain listed investment (at SVF2, cash flows
from financing activities)- Distributions
ꞏ Distribution/payment to third-party investors of ¥346.7 billion (at SVF1, cash flows from financing activities)
 SoftBank Latin America Fund
ꞏ Payments for acquisition of investments of ¥90.0 billion (cash flows from investing activities)
2. Financing activities
 SBG issued domestic hybrid bonds of ¥405.0 billion for the purpose of refinancing.
 The Company’s wholly owned subsidiary procured ¥1.88 billion through borrowings using Alibaba shares(margin loan). In addition, prepaid forward contracts using Alibaba shares amounting to $2.86 billion were
terminated early and repaid, while new prepaid forward contracts were concluded to procure $3.0 billion.
 Proceeds in short-term interest-bearing debt, net was ¥(438,221) million by repaying collateralized debt
obligations from SB Northstar.
(Millions of yen)

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

Three months ended June 30
2020
2021

Change507,438(975,819)
786,091

353,414(2,216,922)(629,284)

154,024
1,241,103
1,415,375(a) Cash Flows from Operating Activities

Cash flows from operating activities increased ¥353,414 million year on year. This was mainly due to a cash
inflow increase effect of ¥735,019 million resulting mainly from the sale of investments by SB Northstar, while
the amount of income taxes paid (cash outflow) increased by ¥358,758 million year on year.
The increase in the amount of income taxes paid was mainly due to payment in the first quarter of corporate
taxes on taxable income at SBGJ including the gain on the sale of SoftBank Corp. shares generated in the previous
fiscal year, as well as payment of withholding income tax on dividends from SBGJ to SBG.

43

SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2021

(b) Cash Flows from Investing Activities

Primary components
Components
Payments for acquisition of
investments¥(401,944) million

Primary details
ꞏ The Company acquired preferred stocks and common stocks of
WeWork by tender offer for ¥101,377 million.
ꞏ SoftBank Latin America Fund made new and follow-on investments
totaling $0.8 billion.
ꞏ The unpaid acquisition price of ¥115,174 million for shares of a newcompany established through the business integration of Z Holdings
Corporation and LINE Corporation was paid in the first quarter after
the shares were acquired from non-controlling interests in the previous
fiscal year.

Payments for acquisition of
investments by SVF1 and SVF2¥(1,401,868) million

ꞏ SVF2 made new and follow-on investments totaling $11.9 billion.
ꞏ SVF1 made follow-on investments totaling $0.9 billion.

Proceeds from sales of investments by SVF1 and SVF2
¥646,663 million

ꞏ SVF1 sold a portion of its shares in six listed portfolio companies.
ꞏ SVF2 sold a portion of its shares in KE Holdings.

Purchase of property, plant andequipment, and intangible assets¥(176,615) million

ꞏ SoftBank Corp. purchased telecommunications equipment.
ꞏ Subsidiaries operating a renewable energy power generation businessoverseas proceeded with construction of power stations.

Proceeds from withdrawal ofrestricted cash
¥359,099 million

In April 2021, restricted cash (a deposit of $3.3 billion required for the
early termination procedure of a portion of the collar contract out of the
prepaid forward contracts using Alibaba shares) recorded at the previous
fiscal year-end was withdrawn. That April, a payment of $2.86 billion
was completed for the early termination, and the cash outflow associatedwith the transaction was recorded as “repayment of interest-bearingdebt” (cash flows from financing activities).

44SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2021

(c) Cash Flows from Financing Activities

Primary components
Components
Proceeds in short-term
interest-bearing debt, net¥(112,596) million*1

Primary details
ꞏ Short-term borrowings at SB Northstar decreased ¥438,221 million (net).
ꞏ SoftBank Corp.’s short-term borrowings increased ¥166,518 million (net).

Proceeds from interest-bearing debt
¥2,412,744 million
Proceeds from borrowings¥1,577,762 million*2

ꞏ SBG made short-term borrowings of ¥695,754 million.
ꞏ A wholly owned subsidiary conducting fund procurement borrowed$1.88 billion using Alibaba shares (margin loan).
ꞏ SVF2 borrowed $0.9 billion under the Portfolio Financing Facility.
ꞏ SoftBank Corp. procured ¥126,400 million through commercial paper andborrowed ¥269,160 million.

Proceeds from issuance ofcorporate bonds¥505,130 million

ꞏ SBG issued domestic hybrid bonds of ¥405,000 million.
ꞏ SoftBank Corp. issued domestic straight corporate bonds totaling¥100,000 million.

Proceeds from procurement
by prepaid forward
contracts using shares¥329,852 million

The Company’s wholly owned subsidiaries conducting fund procurement entered into several prepaid forward contracts using Alibaba
shares with financial institutions and procured an aggregate amount of$3.0 billion.

Repayment of interest-bearing debt¥(691,384) million
Repayment of borrowings¥(377,973) million*2

ꞏ SBG repaid commercial paper of ¥26,000 million and short-term borrowings of ¥9,950 million.
ꞏ SoftBank Corp. repaid commercial paper of ¥48,100 million and borrowings of ¥160,685 million.

Payment of the settlementof the variable prepaid
forward contract¥(313,411) million

In April 2021, the Company paid $2.86 billion for early termination of a
portion of the collar contract out of the prepaid forward contracts using
Alibaba shares.

Distribution/repayment from
SVF1 to third-party investors¥(346,746) million

SVF1 made distributions to third-party investors.

Purchase of treasury stock¥(257,780) million

SBG repurchased its own shares up to May 12, 2021 in accordance witha Board resolution on July 30, 2020.

Cash dividends paid to
non-controlling interests¥(135,820) million

SoftBank Corp. and Z Holdings Corporation paid dividends to noncontrolling interests.

Notes:
1. “Proceeds in short-term interest-bearing debt, net” presents cash flows from financing activities that meet the requirement of“Reporting cash flows on a net basis” under IFRSs.
2. “Proceeds from borrowings” and “repayment of borrowings” include proceeds of ¥946,871 million and outlays of ¥188,273
million, respectively, related to borrowings with a contracted term of one year or less.

45

SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2021

(4) Forecasts

The Company does not provide forecasts of consolidated results of operations as they are difficult to project due tonumerous uncertainties affecting earnings.

46

SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2021

2. Notes to Summary Information(1) Significant Changes in Scope of Consolidation for the Three-Month Period Ended June 30, 2021
(Specified subsidiary (one entity) excluded from the scope of consolidation)
On June 21, 2021, the Company sold the majority of shares in Boston Dynamics, Inc. (“Boston Dynamics”)
held by the Company through a wholly-owned subsidiary to Hyundai Motor Company and its affiliates(collectively, the “Hyundai Motor Group”) and Euisun Chung, Chairman of Hyundai Motor Group. On thesame date, Hyundai Motor Group and Euisun Chung subscribed for additional shares of Boston Dynamics.
Upon completion of the transaction, Boston Dynamics, which was a specified subsidiary of the Company,
was no longer a subsidiary of the Company. The details are described in “Note 7. Disposal group classified
as held for sale” in “(6) Notes to Condensed Interim Consolidated Financial Statements” under “3.
Condensed Interim Consolidated Financial Statements and Primary Notes.”(2) Changes in Accounting Estimates(Reversal of impairment losses on equity method investments)
Reversal of impairment losses on equity method investments was recorded for the equity method
investment in WeWork Inc., an equity method associate of the Company. The details are described in“Notes 2” in “Note 16. Other gain” in “(6) Notes to Condensed Interim Consolidated Financial Statements”
under “3. Condensed Interim Consolidated Financial Statements and Primary Notes.”

47

SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2021

3. Condensed Interim Consolidated Financial Statements and Primary Notes(Definitions of company names and abbreviations used in the condensed interim consolidated financial statements
and primary notes)
Company names and abbreviations used in the condensed interim consolidated financial statements and primarynotes, 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 names or abbreviations indicates the respective company and its subsidiaries, if any.
SB Northstar

SB Northstar LP

SoftBank Vision Fund or SVF1

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

SVF2

SoftBank Vision Fund II-2 L.P. and its alternative investment vehicles

SBIA

SB Investment Advisers (UK) Limited

Arm

Arm Limited

SoftBank Latin America Fund

SoftBank Latin America Fund L.P.

Fortress

Fortress Investment Group LLC

SprintSprint Corporation

Brightstar

Brightstar Global Group Inc.

Alibaba

Alibaba Group Holding Limited

WeWork

WeWork Inc.

From the three-month period ended June 30, 2021, the account of condensed interim consolidated statement ofcash flows has been changed as follows:
Condensed Interim Consolidated Statement of Cash Flows
Previous

Current
Proceeds from sales of investments by SVF1 andProceeds from sales of investments by SVF1

SVF2

48

SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2021

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

As ofMarch 31, 2021
AssetsCurrent assets
Cash and cash equivalents
Trade and other receivables
Investments from asset management subsidiaries
Securities pledged as collateral in asset management
subsidiaries
Derivative financial assets in asset management
subsidiaries
Other financial assets
Inventories
Other current assets
Subtotal
Assets classified as held for sale
Total current assets
Non-current assets
Property, plant and equipment
Right-of-use assets
Goodwill
Intangible assets
Costs to obtain contracts
Investments accounted for using the equity method
Investments from SVF1 and SVF2 accounted for using
FVTPL
Investment securities
Derivative financial assets
Other financial assets
Deferred tax assets
Other non-current assets
Total non-current assets
Total assets

49

As of
June 30, 2021

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

4,980,062
2,152,451
609,081

1,427,286

687,457

188,056

254,143

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

798,423
119,902499,835
10,101,354
10,101,354

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

1,764,663
1,082,133
4,691,625
2,267,690
265,9724,498,256

13,646,774

14,792,184

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

4,351,725
987,267
2,069,561
168,367
144,800
37,084,243
47,185,597

SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2021

(Millions of yen)

As ofMarch 31, 2021
Liabilities and equity
Current liabilities
Interest-bearing debt
Lease liabilities
Deposits for banking business
Trade and other payables
Derivative financial liabilities in asset management
subsidiaries
Derivative financial liabilities
Other financial liabilities
Income taxes payables
Provisions
Other current liabilities
Subtotal
Liabilities directly relating to assets classified as held forsale
Total current liabilities
Non-current liabilities
Interest-bearing debt
Lease liabilities
Third-party interests in SVF1
Derivative financial liabilities
Other financial liabilities
Provisions
Deferred tax liabilities
Other non-current liabilities
Total non-current liabilities
Total liabilities
EquityEquity attributable to owners of the parent
Common stock
Capital surplus
Other equity instruments
Retained earnings
Treasury stock
Accumulated other comprehensive income
Subtotal
Accumulated other comprehensive income directly
relating to assets classified as held for sale
Total equity attributable to owners of the parent
Non-controlling interests
Total equity
Total liabilities and equity

50

As of
June 30, 2021

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

8,643,697
291,402
1,184,013
1,695,139

14,673

14,468322,21351,285391,930
24,939952,443
12,879,684

279,627
30,08983,03019,740703,610
12,944,815

11,271-

12,890,955

12,944,815

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

11,603,726
694,936
6,450,319
49,187383,769
115,227
2,275,398
177,113
21,749,675
34,694,490

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

238,772
2,601,097
496,876
7,056,602(68,101)
400,299
10,725,545

267-

10,213,093

10,725,545

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

1,765,562
12,491,107
47,185,597

SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2021

(2) Condensed Interim Consolidated Statement of Income and Condensed Interim Consolidated Statementof Comprehensive Income
Condensed Interim Consolidated Statement of Income(Millions of yen)Three-month period
ended June 30, 2020Three-month period
ended June 30, 2021

1,279,973(582,501)
697,472

1,479,134(667,163)
811,971

650,493

741,526

296,577
23,281
12,569982,920

287,881219,368
14,293
1,263,068

Selling, general and administrative expenses
Finance cost
Income on equity method investments
Derivative loss (excluding gain (loss) on investments)
Change in third-party interests in SVF1
Other gain
Income before income tax
Income taxes
Net income from continuing operations(504,574)(76,993)
6,573(175,825)(147,643)
52,190834,120(252,159)
581,961(593,430)(82,799)
50,380(111,536)(134,093)
88,917
1,292,478(359,989)
932,489

Discontinued operations
Net income from discontinued operations
Net income

734,460
1,316,421

932,489

Net income attributable to
Owners of the parent
Net income from continuing operations
Net income from discontinued operations

1,255,712
521,143734,569

761,509761,509-60,70960,818(109)
1,316,421

170,980
170,980
932,489253.43362.52615.95437.45437.45227.93362.03589.96394.73394.73

Continuing operations
Net sales
Cost of sales
Gross profit
Gain on investments
Gain on investments at Investment Business of Holding
Companies
Gain on investments at SVF1, SVF2, and others
Gain on investments at Latin America Fund
Gain on other investments
Total gain on investments

Non-controlling interests
Net income from continuing operations
Net income from discontinued operations

Earnings per share
Basic earnings per share (Yen)Continuing operations
Discontinued operations
Total basic earnings per share
Diluted earnings per share (Yen)Continuing operations
Discontinued operations
Total diluted earnings per share

51

SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2021

Condensed Interim Consolidated Statement of Comprehensive Income(Millions of yen)

Net income
Other comprehensive income, net of tax
Items that will not be reclassified to profit or loss
Equity financial assets at FVTOCI
Total items that will not be reclassified to profit or loss
Items that may be reclassified subsequently to profit
or loss
Debt financial assets at FVTOCI
Cash flow hedges
Exchange differences on translating foreign operations
Share of other comprehensive income of associates
Total items that may be reclassified subsequently to profit
or loss
Total other comprehensive income, net of tax
Total comprehensive income
Total comprehensive income
Comprehensive income from continuing operations
Comprehensive income from discontinued operations
Total comprehensive income attributable to
Owners of the parent
Comprehensive income from continuing operations
Comprehensive income from discontinued operations
Non-controlling interests

52

Three-month period
ended June 30, 2020Three-month period
ended June 30, 2021

1,316,421

932,489

1,947

12,272

1,947

12,272577
28,625(219,091)
7,528

337
3,198
46,847
1,257(182,361)

51,639(180,414)
1,136,007

63,911
996,400

611,638
524,369

996,400-

1,073,486
549,008
524,478
62,521
1,136,007

823,095
823,095
173,305
996,400

SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2021

(3) Condensed Interim Consolidated Statement of Changes in Equity
For the three-month period ended June 30, 2020
(Millions of yen)

Equity attributable to owners of the parent

Commonstock

Capitalsurplus

Other equity
instruments

Retainedearnings

Treasurystock

Accumulated
othercomprehensive
income238,772

1,490,325

496,876

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

5,707,918---

1,255,712--

1,255,712

Other comprehensive Income

-

-

-

-

-

23,46923,469Total comprehensive income

-

-

-

1,255,712-

23,4691,279,181

other transactions
Cash dividends

-

-

-

(45,496)--(45,496)

Transfer of accumulated othercomprehensive income to

-

-

-

9

-

(9)

-

-

-

-

(62)

(584,881)-(584,943)

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

177,712

-

-

-

-

177,712-(3,692)

-

-

-

-

(3,692)As of April 1, 2020
Comprehensive income
Net income

Subtotal

Transactions with owners andretained earnings
Purchase and disposal of treasury
stock
Changes from businesscombination
Changes from loss of control
Changes in interests in
subsidiaries
Changes in associates’ interests intheir subsidiaries
Changes in interests in associates’
capital surplus
Share-based payment transactions

-

1,277

-

-

-

-

1,277

-

480

-

-

-

-

480

Other

-

-

-

-

-

-

-

-

175,777-(45,549)(584,881)(9)(454,662)

238,772

1,666,102

496,876

5,155,983(686,497)(338,799)

6,532,437

Total transactions with owners
and other transactions
As of June 30, 202053

SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2021
(Millions of yen)

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

Total

Noncontrollinginterests

205,695

5,913,613

1,459,304

7,372,917-

1,255,712

60,7091,316,421

Other comprehensive income(205,695)(182,226)

1,812(180,414)

Total comprehensive income(205,695)

1,073,486

62,521

1,136,007

other transactions
Cash dividends-(45,496)(92,818)(138,314)

Transfer of accumulated othercomprehensive income to

-

-

-

-

Purchase and disposal of treasury
stock

-

(584,943)-(584,943)

Changes from businesscombination

-

-

883

883

Changes from loss of control--(425,889)(425,889)

Changes in interests in
subsidiaries-

177,71239,858217,570

Changes in associates’ interests intheir subsidiaries-(3,692)-(3,692)

Changes in interests in associates’
capital surplus

-

1,277

-

1,277

-

480
-

976
(492)

1,456
(492)

-

(454,662)(477,482)(932,144)-

6,532,437

1,044,343

7,576,780

As of April 1, 2020
Comprehensive income
Net income

Total equity

Transactions with owners andretained earnings

Share-based payment transactions
Other
Total transactions with owners
and other transactions
As of June 30, 2020

54

SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2021

For the three-month period ended June 30, 2021
(Millions of yen)

Equity attributable to owners of the parent

Commonstock

Capitalsurplus

Other equity
instruments

Retainedearnings

Treasurystock

Accumulated
othercomprehensive
income238,7722,618,504

496,876

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

338,329

10,212,826

-

-

-

761,509--761,509

Other comprehensive income

-

-

-

-

-

61,85361,853

Total comprehensive income

-

-

-

761,509-61,853

823,362

other transactions
Cash dividends

-

-

-

(38,247)--(38,247)

Transfer of accumulated othercomprehensive income to

-

-

-

(117)

-

117

-

-

-

-

(1,148)(253,841)-(254,989)---(2,475,817)

2,475,817

-

-

-

-

-

-

-

-

-

-

(9,788)

-

-

-

-

(9,788)-(7,681)

-

-

-

-

(7,681)

As of April 1, 2021
Comprehensive income
Net income

Subtotal

Transactions with owners andretained earnings
Purchase and disposal of treasury
stock
Retirement of treasury stock
Changes from loss of control
Changes in interests in
subsidiaries
Changes in associates’ interests intheir subsidiaries
Changes in interests in associates’
capital surplus
Share-based payment transactions

-

(2)

-

-

-

-

(2)

-

64

-

-

-

-

64

Other

-

-

-

-

-

-

-

-

(17,407)-(2,515,329)

2,221,976

117(310,643)

238,772

2,601,097

496,876

7,056,602(68,101)

400,299

10,725,545

Total transactions with owners
and other transactions
As of June 30, 2021

55

SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2021
(Millions of yen)

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

Total

Noncontrollinginterests

267

10,213,093

1,742,500

11,955,593-

761,509170,980

932,489

Other comprehensive income(267)

61,586

2,325

63,911

Total comprehensive income(267)

823,095

173,305

996,400

other transactions
Cash dividends-(38,247)(138,949)(177,196)

Transfer of accumulated othercomprehensive income to

-

-

-

-

-

(254,989)-(254,989)

-

-

-

-

-

-

(1,055)(1,055)-(9,788)(25,879)(35,667)-(7,681)-(7,681)

-

(2)

-

(2)

-

64

16,67816,742--(1,038)(1,038)-(310,643)(150,243)(460,886)-

10,725,545

1,765,562

12,491,107

As of April 1, 2021
Comprehensive income
Net income

Total equity

Transactions with owners andretained earnings
Purchase and disposal of treasury
stock
Retirement of treasury stock
Changes from loss of control
Changes in interests in
subsidiaries
Changes in associates’ interests intheir subsidiaries
Changes in interests in associates’
capital surplus
Share-based payment transactions
Other
Total transactions with owners
and other transactions
As of June 30, 2021

56

SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2021

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

Cash flows from operating activities
Net income from continuing operations
Net income from discontinued operations
Net income
Depreciation and amortization
Gain on investments at Investment Business of Holding
Companies
Gain on investments at SVF1, SVF2, and others
Gain on investments at Latin America Fund
Finance cost
Income on equity method investments
Derivative loss (excluding (gain) loss on investments)
Change in third-party interests in SVF1
Gain on other investments and other gain
Income taxes
Decrease in investments from asset management
subsidiaries
Increase/decrease in derivative financial assets andderivative financial liabilities in asset management
subsidiaries
Decrease in securities pledged as collateral in asset
management subsidiaries
Decrease (increase) in trade and other receivables(Increase) decrease in inventories
Decrease in trade and other payables
Gain relating to loss of control over discontinued
operations
Other
SubtotalInterest and dividends received
Interest paid
Income taxes paid
Income taxes refunded
Net cash provided by operating activities
Cash flows from investing activities
Payments for acquisition of investments
Proceeds from sales/redemption of investments
Payments for acquisition of investments by SVF1 and
SVF2Proceeds from sales of investments by SVF1 and SVF2
Payments for acquisition of investments by asset
management subsidiaries
Proceeds from loss of control over subsidiaries
Payments for acquisition of marketable securities for
short-term trading
Proceeds from sales/redemption of marketable securities
for short-term trading
Purchase of property, plant and equipment, andintangible assets
Payments for loan receivables
Proceeds from withdrawal of restricted cash
Payments into trust accounts in SPACs
Other
Net cash provided by (used in) investing activities
57

Three-month period
ended June 30, 2020Three-month period
ended June 30, 2021

581,961
734,460
1,316,421
206,726

932,489
932,489
212,914(650,493)(520,920)(296,577)(23,281)
78,132(6,416)
176,257
147,643(64,367)
253,055(287,881)(219,368)
82,799(50,380)
111,536
134,093(103,210)
359,989-

48,582-(66,147)-

734,283

50,590(3,204)(27,957)(15,285)
7,661(181,714)(736,429)-

84,100504,200
8,584(66,486)(292,757)
483
154,024

47,3251,226,766
7,690(75,673)(651,515)
170
507,438(1,100,223)
2,452,522(401,944)
80,558(120,091)(1,401,868)

197,591

646,663-(81,675)-

62,700(18,784)(30,361)

88,10029,602(149,661)(176,615)(62,062)
11,020(36,653)(20,656)
1,241,103(72,746)
359,099(5,500)16,268(975,819)

SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2021

(Millions of yen)

Cash flows from financing activities
Proceeds in short-term interest-bearing debt, net
Proceeds from interest-bearing debt
Repayment of interest-bearing debt
Repayment of lease liabilities
Contributions into SVF1 from third-party investors
Distribution/repayment from SVF1 to third-party
investors
Proceeds from non-controlling interests subject topossible redemption
Proceeds from the partial sales of shares of subsidiaries
to non-controlling interests
Purchase of shares of subsidiaries from non-controllinginterests
Purchase of treasury stock
Cash dividends paid
Cash dividends paid to non-controlling interests
Other
Net cash provided by financing activities
Effect of exchange rate changes on cash and cash
equivalents
Increase in cash and cash equivalents
Cash and cash equivalents at the beginning of the period
Cash and cash equivalents at the end of the period

58

Three-month period
ended June 30, 2020Three-month period
ended June 30, 2021

268,170
2,143,570(1,017,864)(110,577)
764,660(112,596)
2,412,744(691,384)(94,054)
69,687(217,367)(346,746)

36,653

5,500

310,200458(1)(41,073)(585,699)(44,404)(89,719)(42,247)
1,415,375(257,780)(37,416)(135,820)
14,571
786,091

1,798

(373)

2,812,300
3,369,015
6,181,315

317,337
4,662,725
4,980,062

SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2021

(5) Significant Doubt about Going Concern Assumption
There are no applicable items.
(6) Notes to Condensed Interim Consolidated Financial Statements
1. Changes in presentation(Condensed interim consolidated statement of income and condensed interim consolidated statement ofcomprehensive income)a. Brightstar, a subsidiary of the Company, was excluded from the scope of consolidation of the Company
following the sale of all shares in Brightstar on October 22, 2020. As a result, operating results related toBrightstar are presented as a discontinued operation, separately from continuing operations for the threemonth period ended June 30, 2020. In addition, Sprint was excluded from the scope of consolidation of theCompany on April 1, 2020 and ¥736,429 million of gain relating to loss of control over Sprint is included in“Net income from discontinued operations” for the three-month period ended June 30, 2020.
b. “Gain on investments at Latin America Fund,” which was included in “Gain on other investments” for thethree-month period ended June 30, 2020, is separately presented for the three-month period ended June 30,
2021 since the amount increased and became significant. In order to reflect the change in presentation,¥23,281 million, which was included in “Gain on other investments” for the three-month period ended June30, 2020, is reclassified as “Gain on investments at Latin America Fund.” The details of Latin America Fundare described in “Note 3. Segment information.”

59

SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2021

2. Significant accounting policies
Significant accounting policies applied to the condensed interim consolidated financial statements are consistent
with the accounting policies applied to the consolidated financial statements for the fiscal year ended March 31,
2021. In addition, income taxes for the three-month period ended June 30, 2021 are calculated based on theestimated effective tax rate for the fiscal year.
Significant accounting policies for the SVF1 and Other SBIA-Managed Funds segment and for the asset
management subsidiary are consistent with the accounting policies applied to the consolidated financial
statements for the fiscal year ended March 31, 2021. The details are described in “(1) Significant accounting
policies for the SVF1 and Other SBIA-Managed Funds segment” and “(2) Significant accounting policies for theasset management subsidiary.”(1) Significant accounting policies for the SVF1 and Other SBIA-Managed Funds segment
For SVF1 and SVF2, the Company applies the following accounting policies.
a. Consolidation of SVF1 and SVF2 by the Company
SVF1 and SVF2 are limited partnerships established by its general partner which is a wholly-owned
subsidiary of the Company, and by its form of organization, qualifies as a structured entity. SVF1 and SVF2
are consolidated by the Company for the following reasons.
SVF1 and SVF2 make investment decisions through each investment committee, which was established in
SBIA. SBIA is an advisory company and is a wholly-owned subsidiary of the Company. As such, theCompany has power as defined under IFRS 10 “Consolidated Financial Statements” over SVF1 and SVF2.
Furthermore, SBIA receives performance fees and the Company receives distributions attributable to limited
partners based on the investment performance as returns from SVF1 and SVF2. The Company has the ability
to affect those returns through its power over SVF1 and SVF2, and therefore, the Company is deemed tohave control as stipulated in IFRS 10 “Consolidated Financial Statements” over SVF1 and SVF2.
Inter-company transactions such as management fees and performance fees to SBIA paid or to be paid from
SVF1 and SVF2 are eliminated in consolidation.

60

SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2021

b. Portfolio company investments made by SVF1 and SVF2(a) Investments in subsidiaries
Of the portfolio company investments made by SVF1 and SVF2, the portfolio companies that theCompany is deemed to control under IFRS 10 “Consolidated Financial Statements” 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 SVF1 andSVF2 are eliminated in consolidation.
(b) Investments in associates and joint ventures
Of the portfolio company investments made by SVF1 and SVF2, the portfolio companies over which theCompany has significant influence under IAS 28 “Investments in Associates and Joint Ventures” areassociates of the Company, and the portfolio companies that are joint ventures of SVF1 and SVF2 when,as defined under IFRS 11 “Joint Arrangements,” SVF1 and SVF2 have joint control with other investors
under contractual arrangements and the investors have rights to the net assets of the arrangement.
The investments in associates and joint ventures of the Company made by SVF1 and SVF2 are accounted
for as financial assets at FVTPL in accordance with paragraph 18 of IAS 28 “Investments in Associates
and Joint Ventures” and presented as “Investments from SVF1 and SVF2 accounted for using FVTPL” inthe condensed interim consolidated statement of financial position. The payments for these investments
are presented as “Payments for acquisition of investments by SVF1 and SVF2” and the proceeds fromsales of these investments are presented as “Proceeds from sales of investments by SVF1 and SVF2”
under cash flows from investing activities in the condensed interim consolidated statement of cash flows.
If the investments in associates and joint ventures that were transferred from SoftBank Group Corp. andits subsidiaries to SVF1 or SVF2 were accounted for using the equity method prior to the transfer, theseinvestments continue to be accounted for using the equity method after the transfer to SVF1 or SVF2 andpresented as “Investments accounted for using the equity method” in the condensed interim consolidated
statements of financial position. Gain and loss on the investments which were recognized in SVF1 or
SVF2 are eliminated in consolidation and gain and loss on the investments accounted for using the equity
method are presented as “Income on equity method investments” in the condensed interim consolidated
statements of income.
(c) Other investments
Investments other than those in associates or joint ventures of the Company made by SVF1 and SVF2 are
accounted for as financial assets at FVTPL. The presentation of these investments in the condensed
interim consolidated statement of financial position and the condensed interim consolidated statement ofcash flows are the same as the above “(b) Investments in associates and joint ventures.”61

SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2021

c. Contribution from limited partners to SVF1 and SVF2
SVF1 and SVF2 issue capital calls to its limited partners (“Capital Call”).
No contributions from limited partners other than the Company were made into SVF2 from inception to June30, 2021.
(a) Contribution from limited partners other than the Company
The interests attributable to limited partners other than the Company (“Third-Party Investors”) areclassified as financial liabilities, “Third-party interests in SVF1” in the condensed interim consolidated
statement of financial position, due to the predetermined finite life and contractual payment provision toeach of the limited partners at the end of the finite life within the limited partnership agreement. 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 inaccordance with the limited partnership agreement in a theoretical liquidation scenario at the end of eachquarter.
“Third-party interests in SVF1” fluctuates due to the results of SVF1 in addition to contributions fromThird-Party Investors in satisfaction of Capital Call, and distributions and repayments of investments toThird-Party Investors. The fluctuations due to the results of SVF1 are presented as “Change in third-party
interests in SVF1” in the condensed interim consolidated statement of income.
Contributions from Third-Party Investors to SVF1 are included in “Contributions into SVF1 from thirdparty investors” under cash flows from financing activities in the condensed interim consolidated
statement of cash flows. The distributions and repayments of investments to Third-Party Investors areincluded in “Distribution/repayment from SVF1 to third-party investors” under cash flows fromfinancing activities in the condensed interim consolidated statement of cash flows.
Uncalled committed capital from Third-Party Investors is not subject to IFRS 9 “Financial Instruments,”
and, therefore, such amount is not recorded in the condensed interim consolidated statement of financial
position.
(b) Contribution from the Company
Contributions to SVF1 and SVF2 from the Company as limited partners are eliminated in consolidation.

62

SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2021

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

63SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2021

c. Restricted cash
Restricted cash in SB Northstar is the deposit pledged as collateral to the brokers for acquisition transactionsof investments using borrowings, derivative transactions, and credit transactions and its usage is restricted.
The restricted cash is included in “Other financial assets (current)” in the consolidated financial position andchanges in restricted cash in SB Northstar are included under cash flows from operating activities in thecondensed interim consolidated statement of cash flows.
d. Margin deposits
Margin deposits in SB Northstar are the deposits pledged as collateral for unsettled balance for acquisitionand sale of investments and unsettled derivatives to the brokers and are included in “Other financial assets(current)” in the condensed interim consolidated statement of financial position. At initial recognition, they
are measured at fair value and subsequent to initial recognition, they are measured at amortized cost. In
addition, changes in margin deposits in SB Northstar are included under cash flows from operating activities
in the condensed interim consolidated statement of cash flows.
e. Borrowed securities
The securities borrowed for short credit transactions have obligations for delivery of future financial assets
and meet the definition of financial liabilities held for sale in accordance with IFRS 9 “Financial
Instruments.” Therefore, they are accounted for as financial instruments at FVTPL and included in “Other
financial liabilities (current)” in the condensed interim consolidated statement of financial position. At initialrecognition and subsequent to initial recognition, they are measured at fair value and valuation gains andlosses arising from changes in fair value are included in “Gain on investments at Investment Business of
Holding Companies” in the condensed interim consolidated statement of income. In addition, changes inborrowed securities in SB Northstar are included under cash flows from operating activities in the condensed
interim consolidated statement of cash flows.

64SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2021

3. Segment information(1) Description of reportable segments
The Company’s reportable segments are components of business activities for which discrete financial
information is available, and such information is regularly reviewed by the Company’s Board of Directors inorder to make decisions about the allocation of resources and assess its performance.
For the fiscal year ended March 31, 2021, the Company had four reportable segments, the Investment
Business of Holding Companies segment, the SVF1 and Other SBIA-Managed Funds segment, theSoftBank segment, and the Arm segment. The Latin America Fund segment previously included in “Other”
has been added to the reportable segments from the three-month period ended June 30, 2021 since themateriality has increased.
The Investment Business of Holding Companies segment conducts, mainly through SoftBank Group Corp. asa strategic investment holding company, investment activities in a wide range of sectors in Japan andoverseas directly or through subsidiaries of the Company. The Investment Business of Holding Companies
segment consists of SoftBank Group Corp., SoftBank Group Capital Limited, SoftBank Group Japan
Corporation, SB Northstar that is an asset management subsidiary, and certain subsidiaries of the Company
that conduct investment or funding. SB Northstar is engaged in various transactions such as acquisition andsale of listed stocks, derivative transactions related to listed stocks, credit transactions, and others fordiversification of the assets held and management of surplus funds. Gain and loss on investments at
Investment Business of Holding Companies consists of gain and loss arising from investments held directly
by SoftBank Group Corp. or through subsidiaries of the Company. However, gain and loss on investments
relating to investments in subsidiaries including dividend income from subsidiaries and impairment loss on
investments in subsidiaries are excluded.
The SVF1 and Other SBIA-Managed Funds segment conducts, mainly through SVF1 and SVF2, investment
activities in a wide range of technology sectors. Primarily, gain and loss on investments at SVF1, SVF2, andothers consist of gain and loss arising from investments held by SVF1 and SVF2 including the investment in
the Company’s subsidiary.
The SoftBank segment provides, mainly through SoftBank Corp., mobile services, sale of mobile devices,internet services such as broadband services in Japan, and through Yahoo Japan Corporation and Line
Corporation, internet advertising and e-commerce business.
The Arm segment provides, through Arm, designs of microprocessor intellectual property and related
technology, the sale of software tools, and related services.
The Latin America Fund segment conducts, mainly through SoftBank Latin America Fund, investment
activities all over the Latin America region. Primarily, gain and loss on investments at Latin America Fundconsist of gain and loss arising from investments held by SoftBank Latin America Fund.
Information on business segments which are not included in the reportable segments is classified in “Other.”“Other” includes mainly PayPay Corporation, Fortress, and the Fukuoka SoftBank HAWKS-related
operations.
65

SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2021

“Reconciliations” includes an elimination of intersegment transactions, as well as an elimination of gain andloss on the investment in shares in Arm, a subsidiary of the Company, which are included in segment incomeof the SVF1 and other SBIA-Managed Funds and an elimination of income on equity method investments
recognized relating to PayPay Corporation, which is included in segment income of the SoftBank segment.
Such income on equity method investments is eliminated because the Company consolidates PayPay
Corporation as its subsidiary and related amounts are also included in “Other.”Segment information for the three-month period ended June 30, 2020 is presented based on the reportablesegments after the aforementioned change.
(2) Net sales and income of reportable segments
Income of reportable segments is defined as “Income before income tax.” As in the condensed interim
consolidated statement of income, “Gain (loss) on investments” included in segment income includes
realized gain and loss from investments in financial assets at FVTPL for which investment performance ismeasured at fair value, unrealized gain and loss on valuation of investments, dividend income frominvestments, derivative gain and loss relating to investments in financial assets at FVTPL, and realized gain
and loss from investments accounted for using the equity method. The Investment Business of Holding
Companies segment calculates its segment income by eliminating gain and loss on investments relating toinvestments in subsidiaries, including dividend income from subsidiaries and impairment loss on investments
in subsidiaries.
Intersegment transaction prices are determined under the same general business conditions as applied forexternal customers.

66SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2021

For the three-month period ended June 30, 2020
Reportable segments
Investment Businessof Holding Companies

SVF1 and Other
SBIA-Managed Funds

Intersegment--

1,169,655
2,667

45,959
216

-

Total

-

-

1,172,322

46,175-458,897

129,630

259,249(6,547)22,327

(455)

(150)

(173,134)(17,776)(16)

Gain on investments

650,493

296,577

4,116-

23,281

Finance cost

(53,150)(4,600)(16,256)

(213)

(4)

4,103

-

(9,006)713-(176,190)

-

1

337

-

Reconciliations

Consolidated

SoftBankArm

Latin America FundNet sales
Customers

Segment income
Depreciation andamortization

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

Total

Other

Net sales
Customers

1,215,614

64,359-1,279,973

2,883

2,068

(4,951)-

1,218,497

66,427(4,951)

1,279,973

Segment income

863,556(37,809)

8,373

834,120

Depreciation andamortization(191,531)(13,313)-(204,844)

Gain on investments

974,4678,453-

982,920

Finance cost
Income (loss) on equity(74,223)(3,866)

1,096(76,993)(4,190)

2,809

7,954

6,573

(175,852)

27-(175,825)Intersegment
Total

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

67SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2021

For the three-month period ended June 30, 2021
Reportable segments
Investment Businessof Holding Companies

SVF1 and Other
SBIA-Managed Funds*

SoftBankArm

Latin America FundNet sales
Customers
Intersegment--

1,354,008
2,562

74,017
261

-

Total

-

-

1,356,570

74,278-625,705

235,550

270,954

8,781

216,359

(995)

(137)

(184,340)(18,473)(39)

741,380

391,562

15,262

6219,368(59,595)(4,101)(15,553)

(258)

(203)

54,670-(12,339)

209-(108,105)

704

(99)

(451)

(106)

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

Total

Other

Reconciliations

Consolidated

Net sales
Customers

1,428,025

51,109-1,479,134

2,823

3,108

(5,931)-Total

1,430,848

54,217(5,931)

1,479,134

Segment income

1,357,349

32,848(97,719)

1,292,478

Depreciation andamortization(203,984)(8,930)-(212,914)

Gain (loss) on
investments

1,367,578(974)(103,536)

1,263,068(79,710)(4,105)

1,016(82,799)

42,540

2,040

5,800

50,380(108,057)(3,479)-(111,536)

Intersegment

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

68SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2021

4. SVF1 and other SBIA-managed funds business(1) Income and loss arising from the SVF1 and other SBIA-managed funds businessa. Overview
Segment income arising from the SVF1 and other SBIA-managed funds business (income before income tax)
represents the net profits of the SVF1 and other SBIA-managed funds business, after deducting the net
profits attributable to Third-Party Investors. The net profits attributable to Third-Party Investors are theamount after deducting management fees and performance fees that SBIA receives from SVF1.
The amount of the net profits attributable to Third-Party Investors that is deducted from the segment income
is presented as “Change in third-party interests in SVF1.”
b. Segment income arising from the SVF1 and other SBIA-managed funds business
The components of segment income arising from the SVF1 and other SBIA-managed funds business are as
follows:
Three-month period
ended June 30, 2020

(Millions of yen)Three-month period
ended June 30, 2021

Gain (loss) on investments at SVF1, SVF2, andothers111,425

406,642

258,056

429,989(79,942)(453,153)

Dividend income from investments

2,888

20,812Derivative gain (loss) on investments

815(3,434)

Effect of foreign exchange translation4

3,335(9,294)

296,577

391,562

Selling, general and administrative expenses(14,342)(16,449)

Finance cost (interest expenses)(4,600)(4,101)(147,643)(134,093)(362)(1,369)129,630

235,550

Realized gain on investments1
Unrealized gain (loss) on valuation of investments
Change in valuation for the fiscal year2
Reclassified to realized gain recorded in the pastfiscal year3

Change in third-party interests in SVF1
Other loss
Segment income arising from the SVF1 and other
SBIA-managed funds business (income before
income tax)69

SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2021

Notes:
1. In addition to the realized gain and loss on sales by cash consideration, the realized gain and loss by share exchange areincluded.
2. In September 2020, the Company entered into a definitive agreement with NVIDIA Corporation in order to sell all of its
shares in Arm, a subsidiary of the Company, held by the Company (including shares held by SVF1). Given the definitive
agreement, SVF1 recorded ¥84,682 million of unrealized gain on valuation for the three-month period ended June 30, 2021
upon the fair value estimation of Arm held by SVF1.
The unrealized gain on valuation arising from Arm shares held by SVF1 is included in “Gain (loss) on investments at SVF1,
SVF2, and others” (in Change in valuation for the fiscal year under Unrealized gain (loss) on valuation of investments) in
the above-mentioned segment income. However, the unrealized gain on valuation is eliminated in consolidation as Arm is a
subsidiary of the Company.
For the three-month period ended June 30, 2021, Arm transferred 75.01% all of the shares of Treasure Data, Inc., a whollyowned subsidiary of Arm, to the Company’s foreign subsidiary and 24.99% of the shares to SVF1 as dividends in kind. The
75.01% of Treasure Data, Inc. shares were transferred through sales from the Company’s foreign subsidiary to SVF2. As aresult, the fair values of Arm shares and Treasure Data, Inc. shares held by SVF1 and SVF2 were separately measured as ofJune 30, 2021. The fair value of Treasure Data, Inc. shares, which was included in the fair value of Arm shares as of March
31, 2021, is not included in the fair value of Arm shares as of June 30, 2021.
¥19,019 million of shares of Treasure Data, Inc. received as dividends in kind which SVF1 received from Arm is included in“Gain (loss) on investments at SVF1, SVF2, and others” (in Dividend income from investments) in the above-mentioned
segment income, however, the dividends are eliminated in consolidation. The unrealized gain and loss on valuation and thedividends, that are eliminated in consolidation, are not included in “Gain (loss) on investments at SVF1, SVF2, and others”
in the condensed interim consolidated statement of income.
3. It represents the unrealized gain and loss on valuation of investments recorded as “Gain (loss) on investments at SVF1,
SVF2, and others” in the past fiscal years, which are reclassified to realized gain and loss on investments due to therealization for the three-month period ended June 30, 2021.
4. Unrealized gain and loss on valuation of investments are translated using the average exchange rate for the quarter in which
the gain and loss were recognized, while realized gain and loss on investments are translated using the average exchange
rate for the quarter in which the shares were disposed. Foreign currency translation effects are arising from the different
foreign currency exchange rates used for unrealized gain and loss on valuation and realized gain and loss.

(2) Third-party interests in SVF1
a. Terms and conditions of contribution from/ distribution to limited partners
Contributions by the limited partners are classified as “Equity” and “Preferred Equity” depending on theterms and conditions of distribution. Preferred Equity is prioritized over Equity with regard to distribution
and return of contribution.
Performance-based distributions attributed to limited partners, consisting of the Company and Third-Party
Investors, are calculated using the net proceeds from the investment performance of SVF1. Those
performance-based distributions and performance fees attributed to SBIA will be allocated using the method
specified in the limited partnership agreement. The amount of performance-based distribution attributed tolimited partners will be allocated to each limited partner based on the proportion of their respective Equity
contribution. The amount of performance-based distributions is paid to each limited partner after SVF1
receives cash through dividend, or disposition or monetization of investments.

70SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2021

Fixed distributions are defined as distributions of Preferred Equity holders which are calculated equal to a
7% rate per annum based on their contributions. The fixed distributions are made every last business day ofthe months of June and December.
In the following table, Third-Party Investors contributing Equity are defined as “Investors entitled toperformance-based distribution” and Third-Party Investors contributing Preferred Equity are defined as“Investors entitled to fixed distribution.”b. Changes in interests attributable to Third-Party Investors
Changes in interests attributable to Third-Party Investors (“Third-party interests in SVF1” included in thecondensed interim consolidated statement of financial position) are as follows:

Third-party interests(Total of current liabilities andnon-current liabilities)(Millions of yen)(For reference purposes only)
Links with the condensed interim consolidated financial
statements
Consolidated statement
Consolidated statement ofof income
cash flows(Negative figures represent (Negative figures represent
expenses)
payments)(Breakdown)
As of April 1, 2021
Contributions from third-party
investors
Changes in third-party interests

6,601,791
69,687-

69,687

134,093(134,093)-

Attributable to investors entitled to
fixed distribution

39,701Attributable to investors entitled toperformance-based distribution

94,392Distribution/repayment to third-party
investors(346,746)-(346,746)

Exchange differences on translating
third-party interests*(8,506)--

As of June 30, 2021

6,450,319

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

c. Uncalled committed capital from Third-Party Investors
Uncalled committed capital from SVF1’s Third-Party Investors as of June 30, 2021 was $8.8 billion.
No contributions from Third-Party Investors were made into SVF2 from the inception to June 30, 2021, andthere were no third-party interests in SVF2 as of June 30, 2021.

71SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2021

(3) Management fees and performance fees to SBIA
Terms and conditions of management fees and performance fees to SBIA from SVF1, included in segment
income from the SVF1 and other SBIA-managed funds business, are as follows.
a. Management fees to SBIAManagement fees to SBIA are, in accordance with the limited partnership agreement, calculated bymultiplying 1% per annum by Equity contributions used to fund investments and paid to SBIA by SVF1
quarterly. A clawback provision is attached to the management fees received, which is triggered undercertain conditions based on future investment performance.
b. Performance fees to SBIA
Same as the performance-based distributions, the amount of the performance fees to SBIA is calculated using
the allocation method as specified in the limited partnership agreement. SBIA is entitled to receive theperformance fees when SVF1 receives cash through disposition, dividend and monetization of an investment.
From the inception of SVF1 to June 30, 2021, the cumulative amount of performance fees paid to SBIA was$439 million. For the three-month period ended June 30, 2021, no performance fees were paid to SBIA.
In addition, the performance fees received are subject to clawback provisions which are triggered undercertain conditions based on future investment performance.

72SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2021

5. Business combinations
For the three-month period ended June 30, 2021
Acquisition of LINE Corporation and business integration of LINE Group and Z Holdings Corporation(Amendment of provisional amounts)
SoftBank Corp., a subsidiary of the Company, obtained control of LINE Corporation1, effective February 28,
2021. As the recognition of identifiable assets acquired and liabilities assumed as of the acquisition date andmeasurement of their fair values were not complete as of March 31, 2021, the allocation of the considerationtransferred to assets acquired, liabilities assumed and resulting goodwill has provisionally been accountedfor. Based on the additional information obtained for the three-month period ended June 30, 2021, theamounts of the provisional accounting treatment have been amended.
The main amendments comprise of decrease in property, plant and equipment of ¥2,762 million, decrease inintangible assets including identifiable intangible assets of ¥15,055 million, decrease in deferred tax
liabilities of ¥5,605 million, decrease in non-controlling interests of ¥6,106 million, and increase in goodwillof ¥6,106 million. In addition, amortization of identifiable intangible assets incurred for this businesscombination was ¥3,401 million, all of which are included in “Selling, general and administrative expenses”
in the condensed interim consolidated statement of income for the three-month period ended June 30, 2021.
(1) Consideration transferred and the component(Millions of yen)
Acquisition date(February 28, 2021)
Fair value of common shares in LINE Corporation already held at the

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

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

Total consideration transferred

73

862,072

SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2021

(2) Fair value of assets and liabilities, non-controlling interests and goodwill on the acquisition date(Millions of yen)
Acquisition date(February 28, 2021)
Cash and cash equivalents

312,791

Trade and other receivables

67,553

Other (current)

46,687

Property, plant and equipment

21,905Right-of-use assets

62,940Intangible assets

410,346

Investments accounted for using the equity method

168,093

Other (non-current)

104,809

Total assets

1,195,124Interest-bearing debt (current and non-current)

181,308

Lease liabilities (current and non-current)

62,940Trade and other payables

233,671

Other (current)

49,169Deferred tax liabilities

150,251

Other (non-current)

20,745

Total liabilities

698,084

Net assets

B

497,040

Non-controlling interests

C258,151

A-(B-C)623,183

Goodwill

Notes:
1. Refers to LINE Corporation, surviving company in the absorption-type merger conducted by Shiodome Z Holdings G.K.
LINE Corporation, the acquiree, transferred all business to LINE Split Preparation Corporation (currently, LINE
Corporation) and changed its name to A Holdings Corporation, effective February 28, 2021.
2. As the allocation of the consideration transferred was not complete as of June 30, 2021, the above amounts areprovisionally based on the best estimate at present. Accordingly, the allocation of the consideration transferred maychange in a year from the acquisition date when additional information related to facts and circumstances that existed asof the acquisition date are obtained and evaluated.

74SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2021

6. Other financial assets (current)
The components of other financial assets (current) are as follows:(Millions of yen)
As ofMarch 31, 2021

As ofJune 30, 2021

Derivative financial assets1

383,315522,623

Marketable securities

80,797

87,122

Restricted cash2

480,100

78,648Time deposits (maturities of more than three months)

36,31523,758Other

85,63097,888

Allowance for doubtful accounts(10,935)(11,616)

1,055,222

798,423

Total
Notes:

1. The increase was primarily due to prepaid forward contracts using Alibaba shares. The details are described in “Notes 1” in“(1) Components of interest-bearing debt” under “Note 9. Interest-bearing debt.”
2. On April 13, 2021, the Company paid ¥313,411 million ($2.9 billion) from ¥361,355 million ($3.3 billion) of restricted cash
which was required to be maintained in a segregated custody account as of March 31, 2021 for the early termination of the
prepaid forward contract using Alibaba shares by cash. Accordingly, the Company completed the settlement of the prepaid
forward contract using Alibaba shares. Also, ¥47,944 million of the rest of the restricted cash was released from usage limit
and transferred to “Cash and cash equivalents” for the three-month period ended June 30, 2021. The details are described in“Notes 1” in “(1) Components of interest-bearing debt” under “Note 9. Interest-bearing debt.”

75

SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2021

7. Disposal group classified as held for sale
As of December 11, 2020, the Company agreed on main terms of a transaction with South Korea-based
Hyundai Motor Company and its affiliates (collectively “Hyundai Motor Group”) and Euisun Chung,
Chairman of Hyundai Motor Group, pursuant to which (i) the Company would sell the majority of its shares
held in Boston Dynamics, Inc. (“Boston Dynamics”), to Hyundai Motor Group and Euisun Chung, and (ii)Hyundai Motor Group and Euisun Chung would subscribe for additional shares of Boston Dynamics. Uponthis agreement, it was highly probable that Boston Dynamics would no longer be a subsidiary of the Company.
Accordingly, assets, liabilities, and accumulated other comprehensive income of Boston Dynamics werereclassified as a disposal group classified as held for sale for the fiscal year ended March 31, 2021. The
disposal group classified as held for sale was measured at the carrying amount as the consideration from thesale transaction was higher than the carrying amount of Boston Dynamics. The carrying amounts of assets,
liabilities, and accumulated other comprehensive income in Boston Dynamics were ¥38,647 million, ¥11,271
million, and ¥267 million, respectively as of March 31, 2021.
In addition, the transaction was completed following regulatory approval and satisfaction of certain conditions
on June 21, 2021. Boston Dynamics is no longer a subsidiary of the Company from the same date and theshares continuously held as a minority shareholder are measured at fair value and accounted for as financial
instruments at FVTPL. Accordingly, for the three-month period ended June 30, 2021, the difference between
the consideration from the sale transaction (excluding the cost to sell) and the fair value of shares continuously
held, and the carrying amount of Boston Dynamics (assets, liabilities, accumulated other comprehensive
income, and non-controlling interests) was recorded as a gain relating to loss of control over subsidiaries for¥72,936 million under “Other gain” in the condensed interim consolidated statement of income.
8. Income taxes
For the three-month period ended June 30, 2021
Due to the enactment of the UK Finance Act of 2021 in June 2021, the corporate tax rate was increased from
19% to 25% on or after April 1, 2023. As a result, the Company reversed a deferred tax liability of ¥38,029
million (translated at the exchange rate as of March 31, 2021). In addition, credits of income taxes (profit) andother comprehensive income (profit) were recorded for ¥31,953 million and ¥5,890 million, respectively. This is
primarily due to the fact that certain subsidiaries based in the UK, which were applicable for the calculation of
aggregation of income earned by controlled foreign companies in SoftBank Group Corp., will be expected to be
exempt on or after April 1, 2023.

76

SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2021

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

As ofMarch 31, 2021

As ofJune 30, 2021

Current
Short-term borrowings

2,637,401

3,078,983

409,201

609,301

2,085,348

2,093,384

804,356805,022

1,798,701

2,056,793

232

214

7,735,239

8,643,697

Long-term borrowings

4,745,058

5,182,926

Corporate bonds2

4,745,184

5,251,674

1,287,038

1,168,712

456

414

10,777,736

11,603,726

Commercial paper
Current portion of long-term borrowings
Current portion of corporate bonds
Current portion of financial liabilities relating tosale of shares by prepaid forward contracts1
Current portion of installment payables
Total
Non-current

Financial liabilities relating to sale of shares by
prepaid forward contracts1
Installment payables
Total

Notes:
1. These are financial liabilities related to the sale of shares by prepaid forward contracts with financial institutions using
Alibaba shares, which are held by West Raptor Holdings, LLC, West Raptor Holdings 2, LLC, Skybridge LLC, Skylark 2020
Holdings Limited (“Skylark Limited”), Scout 2020 Holdings Limited, Tigress 2020 Holdings Limited (“Tigress Limited”),
Panther I 2021 Holdings Limited (“Panther I Limited”), and Panther II 2021 Holdings Limited (“Panther II Limited”), wholly-owned subsidiaries of the Company (“Entities for fund procurement by using Alibaba shares”).
In the prepaid forward contracts, the number of Alibaba shares settled by the prepaid forward contracts is determined byreference to market price of the shares at the valuation dates prior to the settlement date. The prepaid forward contracts
include a floor contract that a floor is set for the price of shares settled and collar contracts that a cap and a floor are set forthe price of shares settled. A part of Entities for fund procurement by using Alibaba shares, in addition to the prepaid forward
contracts, enter into the call spread (combination of long position of call option and short position of call option with different
strike prices) contracts in preparation for Alibaba shares price rise.
The aforementioned prepaid forward contracts are classified as hybrid financial instruments with embedded derivatives andthe embedded derivatives are measured at fair value and the call spread contracts are measured at fair value as well. In
addition, for the derivative financial assets and the derivative financial liabilities recognized from the prepaid forward
contracts and the call spread contracts, a tax effect is recognized. The ending balance of the derivative financial assets and thederivative financial liabilities recognized from the prepaid forward contracts and the call spread contracts are described in“(1) Option contracts” under “Note 10. Financial Instruments.”
Entities for fund procurement by using Alibaba shares have the option to settle all of the prepaid forward contracts bydelivering cash, Alibaba shares, or a combination of cash and Alibaba shares. If Entities for fund procurement by using
Alibaba shares elect cash settlement, Entities for fund procurement by using Alibaba shares will pay the cash equivalent to
the fair value of the number of shares subject to the settlement, as determined by reference to the market price of the shares.

77SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2021

Alibaba shares held by Entities for fund procurement by using Alibaba shares are pledged as collateral in accordance with allof the prepaid forward contracts, and except for the contract by Tigress Limited, the Company granted right of use to thefinancial institutions with respect to such shares. However, the collateral can be released by cash settlement at the discretionof Entities for fund procurement by using Alibaba shares. Alibaba continues to be an equity method associate of the Company
after the completion of these transactions because the Company still has significant influence over Alibaba via voting rights.
Also, for the fiscal year ended March 31, 2021, Skylark Limited had exercised the option to settle the prepaid forward
contract by cash and provided a notice to the counterparty for early termination in April 2021. Under the prepaid forward
contract, Skylark Limited is required to maintain cash that would exceed expected early termination amounts in a segregatedcustody account as restricted cash before the expected early termination date. ¥361,355 million ($3.3 billion) of the restrictedcash is recognized as “Other financial assets (current)” in the condensed interim consolidated statement of financial position
as of March 31, 2021.
On April 13, 2021, Skylark Limited paid ¥313,411 million ($2.9 billion) from restricted cash and completed the settlement of
the transactions. ¥285,780 million of current portion of financial liabilities relating to sale of shares by prepaid forward
contracts and ¥28,096 million of “Derivative financial liabilities (current),” which were recognized in the condensed interim
consolidated statement of financial position as of March 31, 2021, were derecognized. Accordingly, on the same date,¥61,633 million of Alibaba shares recognized in the condensed interim consolidated statement of financial position as ofMarch 31, 2021 was released from the collateral.
Further, for the three-month period ended June 30, 2021, Panther I Limited, and Panther II Limited entered into collar
contracts and procured ¥164,926 million ($1.5 billion) and ¥164,926 million ($1.5 billion), respectively.
As of June 30, 2021, the Company set ¥674,922 million of Alibaba shares, which is recognized as “Investments accounted forusing the equity method” in the condensed interim consolidated statement of financial position, as collateral for ¥2,056,793
million of current portion of financial liabilities relating to sale of shares by prepaid forward contracts and ¥1,168,712 millionof financial liabilities relating to sale of shares by prepaid forward contracts.
2. SoftBank Group Corp. issued the 5th unsecured subordinated bonds with interest deferrable clause and early redeemableoption (with a subordination provision) with June 21, 2021, as the due date for payment. As a result, corporate bonds
increased by ¥397,628 million.

78

SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2021

(2) Components of proceeds in short-term interest-bearing debt, net
The components of “Proceeds in short-term interest-bearing debt, net” in the condensed interim consolidated
statement of cash flows are as follows:(Millions of yen)Three-month period
ended June 30, 2020Three-month period
ended June 30, 2021

Net increase (decrease) of short-term borrowings

354,170(247,396)

Net (decrease) increase of commercial paper(86,000)

134,800

268,170(112,596)

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

The components of “Proceeds from interest-bearing debt” in the condensed interim consolidated statement ofcash flows are as follows:(Millions of yen)Three-month period
ended June 30, 2020Three-month period
ended June 30, 2021

Proceeds from borrowings

461,854

1,577,762

Proceeds from issuance of corporate bonds

200,000

505,130

1,481,716

329,852

2,143,570

2,412,744

Proceeds from procurement by prepaid forward
contracts using shares*
Total

Note:
* The amount was procured under the prepaid forward contracts using Alibaba shares. The details are described in “Notes 1”
under “(1) Components of interest-bearing debt.”(4) Components of repayment of interest-bearing debt
The components of “Repayment of interest-bearing debt” in the condensed interim consolidated statement ofcash flows are as follows:(Millions of yen)Three-month period
ended June 30, 2020Three-month period
ended June 30, 2021

Repayment of borrowings(917,864)(377,973)

Redemption of corporate bonds(100,000)--(313,411)(1,017,864)(691,384)

Repayment of settlement of prepaid forward
contracts using shares*
Total
Note:

* The amount was paid due to the early settlement related to the prepaid forward contract using Alibaba shares. The details aredescribed in “Notes 1” under “(1) Components of interest-bearing debt.”

79SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2021

10. Financial instruments(1) Option contracts
The details of option contracts are mainly as follows:
Option contracts to which hedge accounting is not applied(Millions of yen)
As ofMarch 31, 2021

As ofJune 30, 2021

Carrying amount(fair value)

Carrying amount(fair value)

AssetsLong call option of listed stocks in asset
management subsidiaries
Short call option of listed stocks in asset
management subsidiaries
Contingent consideration relating to acquisition of
T-Mobile shares1
Prepaid forward contracts using Alibaba shares2
Call spread contracts relating to prepaid forward
contracts using Alibaba shares2
Short call option for T-Mobile shares to Deutsche

Liabilities

AssetsLiabilities

176,627-

235,547--(9,283)-(14,247)

460,709-658,492-

661,615(28,096)646,660-

42,059-40,419--(204,821)-(271,540)

Telekom3

Notes:
1. Acquired due to the merger transaction with Sprint and T-Mobile US, Inc. on April 1, 2020 and the Company has the right toacquire 48,751,557 T-Mobile shares for no additional consideration if certain conditions are met. In addition, “T-Mobile”
indicates T-Mobile US, Inc. after merging with Sprint.
2. The details of prepaid forward contracts using Alibaba shares and call spread contracts relating to prepaid forward contracts
using Alibaba shares are described in “Notes 1” in “(1) Components of interest-bearing debt” under “Note 9. Interest-bearing
debt.”
3. Call options for T-Mobile shares which the Company granted to Deutsche Telekom in relation to the transfer of T-Mobile sharesconducted for the fiscal year ended March 31, 2021. “Deutsche Telekom” indicates Deutsche Telekom AG.

80

SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2021

(2) Swap contracts
The details of swap contracts are mainly as follows:
Swap contracts to which hedge accounting is not applied(Millions of yen)
As ofMarch 31, 2021

As ofJune 30, 2021

Carrying amount(fair value)

Carrying amount(fair value)

AssetsTotal return swap contracts of listed stocks in asset
management subsidiaries

Liabilities

7,057

Assets(5,390)Liabilities

11,844-(3) Forward contracts
The details of forward contracts are mainly as follows:
Forward contracts to which hedge accounting is not applied(Millions of yen)
As ofMarch 31, 2021

As ofJune 30, 2021

Carrying amount(fair value)

Carrying amount(fair value)

AssetsTender offer for WeWork shares*
Forward contracts of listed stocks in asset
management subsidiaries

Liabilities

AssetsLiabilities-(76,823)

-

-

4,372

-

6,752

(221)

Note:
* In March 2021, a wholly-owned subsidiary of the Company other than SVF1 (hereinafter within “Investments in WeWork,” andthe wholly-owned subsidiaries of the Company that invest in WeWork or are parties to contracts with WeWork are collectively
referred to as the “WeWork Investment Subsidiary”) commenced a tender offer to purchase WeWork common shares andpreferred shares from certain shareholders other than the Company at a price of $19.19 per share for the total amount of $922
million. The tender offer is considered as forward contracts and accounted for as derivatives. The difference between thevaluation amount of common shares and preferred shares expected to purchase and the expected acquisition amount wasrecorded as “Derivative financial liabilities (current)” as of March 31, 2021. The tender offer was completed in April 2021 andthe derivative financial liabilities are reversed and reduced from the initially recognized amount of the purchased common sharesand preferred shares for the three-month period ended June 30, 2021.

81SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2021

11. 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
March 31, 2021

As ofJune 30, 2021

USD

110.71110.58

CNY

16.84

17.11

(2) Average rate for the quarter
For the three-month period ended June 30, 2020
(Yen)
Three-month period ended
June 30, 2020
USD

107.74CNY

15.16

For the three-month period ended June 30, 2021
(Yen)
Three-month period ended
June 30, 2021
USD

110.00

CNY

17.01

82

SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2021

12. Equity(1) Other equity instruments
On July 19, 2017, the Company issued USD-denominated Undated Subordinated Non-Call 6 years
Resettable Notes and USD-denominated Undated Subordinated Non-Call 10 years Resettable Notes(collectively, the “Hybrid Notes”).
The Hybrid Notes are classified as equity instruments in accordance with IFRSs because the Company has
the option to defer interest payments, the notes have no maturity date, and the Company has an unconditionalright to avoid delivering cash or another financial asset except for distribution of residual assets on
liquidation.
(2) Treasury stock
Changes in treasury stock are as follows:(Thousands of shares)Three-month period
ended June 30, 2020Three-month period
ended June 30, 2021

Balance at the beginning of the period

21,818351,298

Increase during the period1

121,678

25,980Decrease during the period2(177)(367,437)

143,319

9,841

Balance at the end of the period
Notes:

1. For the three-month period ended June 30, 2021, due to purchases of treasury stock under the resolutions passed at theBoard of Directors meetings held on July 30, 2020, the number of treasury stock increased by 25,980 thousand shares(amount purchased ¥257,777 million) as part of “SoftBank announces ¥4.5 trillion ($41 billion) program to repurchaseshares and reduce debt” announced on March 23, 2020 (the “¥4.5 trillion program”). In addition, the purchases of treasury
stock up to ¥2 trillion have been completed based on the ¥4.5 trillion program with the completion of purchases of treasury
stock under the resolution.
2. For the three-month period ended June 30, 2021, the decrease was made mainly under the resolutions passed at the Board of
Directors meeting held on April 28, 2021 and May 12, 2021. The Company retired its treasury stock of 366,860 thousand
shares in total on May 11, 2021 and May 20, 2021. As a result of the transaction, retaining earnings and treasury stock
decreased by ¥2,475,817 million, respectively.

83SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2021

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

As ofMarch 31, 2021

As ofJune 30, 2021

Equity financial assets at FVTOCI

24,09936,003

Debt financial assets at FVTOCI

390

412

42,96246,002

270,878

317,882

338,329400,299

Cash flow hedges
Exchange differences on translating foreign
operations
Total

84

SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2021

13. Gain on investments(1) Gain and loss on investments at Investment Business of Holding Companies
The components of gain and loss on investments at Investment Business of Holding Companies are as
follows:(Millions of yen)Three-month period
ended June 30, 2020Three-month period
ended June 30, 2021

421,863--

65,416-

17,703-

119,511

Realized gain on investments

64,15919,265

Unrealized gain on valuation of investments

29,801

360,875

Derivative gain on investments*

133,349

147,277

1,321

11,479650,493

741,526

Gain relating to sales of T-Mobile shares
Realized gain on investments at asset management
subsidiaries
Unrealized gain on valuation of investments at asset
management subsidiaries
Derivative gain on investments at asset management
subsidiaries

Other
Total
Note:

* For the three-month period ended June 30, 2021, ¥197,783 million of derivative gain on investments was recorded due tochanges in the fair value of contingent consideration related to the acquisition of T-Mobile shares. The details of contingent
consideration are described in “Notes 1” in “(1) Option contracts” under “Note 10. Financial instruments.”(2) Gain and loss on investments at SVF1, SVF2, and others
The details are described in “Note 4. SVF1 and other SBIA-managed funds business.”(3) Gain and loss on investments at Latin America FundThe components of gain and loss on investments at Latin America Fund are as follows:(Millions of yen)

Unrealized gain on valuation of investments
Derivative gain (loss) on investments
Other
Total

85

Three-month period
ended June 30, 2020Three-month period
ended June 30, 2021

23,062219,236

219

(44)

-

176

23,281

219,368SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2021

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

Three-month period
ended June 30, 2020Three-month period
ended June 30, 2021

(76,993)(82,799)

15. Derivative loss (excluding gain (loss) on investments)
For the three-month period ended June 30, 2021, derivative loss of ¥109,662 million was recorded for the
prepaid forward contracts using Alibaba shares and the call spread contracts related to the prepaid forward
contracts using Alibaba shares. The details of the contracts are described in “Notes 1” in “(1) Components ofinterest-bearing debt” under “Note 9. Interest-bearing debt.”
16. Other gain
The components of other gain and loss are as follows:(Millions of yen)Three-month period
ended June 30, 2020Three-month period
ended June 30, 2021

Interest income

2,553

8,720

Foreign exchange loss

(5,563)(14,874)-

77,402-

13,059Dilution gain from changes in equity interest

4,967

3,578

Reversal of allowance for loan commitment losses

43,485

-

8,076

-

(1,328)

1,032

52,19088,917

Gain relating to loss of control over subsidiaries1
Reversal of impairment losses on equity method
investments2

Reversal of allowance for financial guarantee
contract losses
Other
Total

Notes:
1. For the three-month period ended June 30, 2021, primarily recorded as Boston Dynamics was no longer a subsidiary of theCompany. The details are described in “Note 7. Disposal group classified as held for sale.”
2. For the three-month period ended June 30, 2021, ¥13,059 million of reversal of impairment losses was recorded as the fairvalue of WeWork shares held by the WeWork Investment Subsidiary increased.

86SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2021

17. Supplemental information to the condensed interim consolidated statement of cash flows(1) Cash flows from discontinued operations
Cash flows from continuing operations and cash flows from discontinued operations are included in thecondensed interim consolidated statement of cash flows.
(2) Income taxes paid
For the three-month period ended June 30, 2021
Payment of withholding income tax related to dividends within the group companies of ¥245,053 million is
included in “Income taxes paid.”
In addition, withholding income tax related to dividends within the group companies of ¥245,053 million
was refunded in July 2021.
(3) Proceeds from withdrawal of restricted cash
For the three-month period ended June 30, 2021
¥359,038 million of proceeds, which was required to be maintained in a segregated custody account for the
early termination of financial liabilities related to the settlement of prepaid forward contracts using Alibaba
shares as of March 31, 2021, is included in “Proceeds from withdrawal of restricted cash.” The details aredescribed in “Notes 1” in “(1) Components of interest-bearing debt” under “Note 9. Interest-bearing debt.”

87SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2021

18. Subsequent events(1) Issuance of Notes
SoftBank Group Corp. issued USD-denominated Senior Notes due 2025, 2026, 2028, and 2031, and Eurodenominated Senior Notes due 2024, 2027, 2029, and 2032.
a. USD-denominated Senior Notes(a) Total amount ofissue

Due 2025

Due 2026

Due 2028

Due 2031$550 million$800 million$1,000 million$1,500 million

4.625% per annum

5.250% per annum(b) Issue price

100% of the principal amount(c) Interest rate

3.125% per annum(d) Interest payment

Payable semi-annually in arrears on January 6 and July 6 each year(e) Term(f) Maturity date(g) Redemption at
maturity(h) Early redemption

3.5 years

5 years

7 years

10 years

January 6, 2025

July 6, 2026

July 6, 2028

July 6, 2031

Redemption in whole at maturity date at 100% of the principal amount
Redemption in whole or in part at 100% of the principal amount at any time on or after thedate that is 90 days prior to the maturity date, or in whole or in part at 100% of the principal
amount plus a “make-whole” premium at any time prior to the date that is 90 days prior tothe maturity date.

(i) Issue dateJuly 6, 2021(j) CollateralNone(k) Guarantee

None(l) Use of proceeds

4.000% per annum

SoftBank Group Corp. plans to use the proceeds for repayment of indebtedness, including
the repayment of short-term and long-term indebtedness, and general corporate purposes,
including the maintenance of a cash position for redemption of outstanding notes due overthe next two years and new investments.

88SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2021

b. Euro-denominated Senior Notes(a) Total amount ofissue

Due 2024

Due 2027

Due 2029

Due 2032€750 million€800 million€800 million€600 million

3.375% per annum

3.875% per annum(b) Issue price

100% of the principal amount(c) Interest rate

2.125% per annum(d) Interest payment

Payable semi-annually in arrears on January 6 and July 6 each year(e) Term(f) Maturity date(g) Redemption at
maturity(h) Early redemption

3 years

5.5 years

8 years

11 years

July 6, 2024

January 6, 2027

July 6, 2029

July 6, 2032

Redemption in whole at maturity date at 100% of the principal amount
Redemption in whole or in part at 100% of the principal amount at any time on or after thedate that is 90 days prior to the maturity date, or in whole or in part at 100% of the principal
amount plus a “make-whole” premium at any time prior to the date that is 90 days prior tothe maturity date.

(i) Issue dateJuly 6, 2021(j) CollateralNone(k) Guarantee

None(l) Use of proceeds

2.875% per annum

SoftBank Group Corp. plans to use the proceeds for repayment of indebtedness, including
the repayment of short-term and long-term indebtedness, and general corporate purposes,
including the maintenance of a cash position for redemption of outstanding notes due overthe next two years and new investments.

(2) Introduction of Co-investment Program with Restricted Right to Receive Distributions and Preferred Equity
to SVF2
a. Co-investment Program with Restricted Right to Receive Distributions
The Board of Directors of SoftBank Group Corp. has resolved to introduce a co-investment program withrestricted right to receive distributions (“Program”) to SVF2 and principal conditions of the investment
have been agreed with SVF II Investment Holdings LLC (“SVF2 LLC”), a subsidiary of SVF2, and
MASA USA LLC (“MgmtCo”), a participant in the Program. MgmtCo is wholly-owned by a company
controlled by Masayoshi Son, Representative Director, Corporate Officer, Chairman & CEO of SoftBank
Group Corp., and related party of the Company.
(a) Purpose of the Program
The Program has been introduced for the purpose of enabling Masayoshi Son to make a co-investment
in SVF2, creating a shared interest in the success of SVF2, and instilling a sense of ownership leading
to enhanced focus on the management of SVF2 investments, which in turn is intended to contribute toincreases in the Company’s earnings. In making a co-investment in SVF2 under the terms of theProgram, MgmtCo both receives the benefit of profits from SVF2 and assumes the risk of losses from
SVF2, and MgmtCo’s right to receive distributions from its investment is subject to certain restrictions.

89SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2021(b) Overview of the Program
The overview of the Program is as follows.
In July 2021, the Company established SVF2 LLC beneath SVF2. In the future, in principle,
investments in unlisted portfolio companies held or to be held by SVF2 as of June 23, 2021 will betransferred to SVF2 LLC.
In July 2021, SVF2 LLC agreed on the principal conditions of an investment with MgmtCo, whereby
SVF2 LLC will issue Equity to MgmtCo and the Company (through SoftBank Vision Fund II-2 L.P.
and its subsidiaries), and the Company will hold 82.75% of the total Equity interests in SVF2 LLC and
MgmtCo will hold 17.25% of the total Equity interests in SVF2 LLC. The amount of capital
contribution by MgmtCo will be up to $2.6 billion. The Equity interests held by the Company and
MgmtCo are entitled to performance-based distributions that are allocated to each investor based on the
proportion of their respective Equity contributions. The MgmtCo’s interest in SVF2 LLC will be
attributable to Masayoshi Son.
MgmtCo’s capital contribution in SVF2 LLC may be paid on a deferred basis in installments. If no cash
payment is made at the time of the acquisition of Equity interests in SVF2 LLC, then MgmtCo will be
required to pay a premium of 3% per annum on the unpaid amount of the capital contribution until theunpaid amount is paid in full. MgmtCo may, at its discretion, pay outstanding amounts of theinvestment in whole or in part at any time. Any distributable amount to MgmtCo will be offset against
the outstanding debt on the investment until the unpaid amount is paid in full.
As security for the unpaid amount, Equity interests in SVF2 LLC held by MgmtCo will be pledged ascollateral for the unpaid obligations of the investment owed by MgmtCo. Masayoshi Son will also
provide a personal guarantee of MgmtCo’s outstanding debt up to the amount of the outstanding debt.
In addition, Masayoshi Son will deposit with SVF2 LLC $500 million worth of SoftBank Group Corp.
shares (as of the issue date of the Equity from SVF2 LLC to MgmtCo).
Distributions from SVF2 LLC to MgmtCo will be fully restricted and will not be implemented until thesum of proceeds received by SVF2 LLC from realized investments plus the aggregate fair market valueof all of SVF2 LLC’s unrealized investments (net of borrowings) exceeds 130% of the aggregateacquisition cost of all of SVF2 LLC’s investments. After the ratio exceeds 130%, restrictions on
distributions to MgmtCo will be released proportionately in increments of 10%, and when the ratio
reaches 200%, all restrictions will be released and MgmtCo will be entitled to receive the full amount of
the distribution.
The terms of the management fee and performance fee to be charged to MgmtCo are the same as thoseto be charged to the Company as an Equity investor in SVF2 LLC.
The Equity interests held by MgmtCo and the Company will be subordinated to the Preferred Equity
described in “b. Preferred Equity Contribution by the Company.” If there is a shortfall in the amount ofreturn of Preferred Equity contributions and the amount of fixed distributions to be received by thePreferred Equity holders at the time of the final profit distribution by SVF2 LLC, then MgmtCo will be

90SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2021

obligated to pay 17.25% of the shortfall to SVF2 LLC up to the total amount of return of Equity
contributions and the distributions received by MgmtCo.
b. Preferred Equity Contribution by the Company
SoftBank Group Corp. resolved at a meeting of its Board of Directors that SVF2 LLC will issue to theCompany (through SoftBank Vision Fund II-2 L.P. and its subsidiaries) a new class of Preferred Equity
interests that will be subject to a new fixed distribution separate from the Equity under the Program. The
Preferred Equity interests will have a priority right over the Equity interests held by the Company and
MgmtCo under the Program in terms of distributions and return of contributions, and the Company will
receive a fixed distribution amount calculated at 8% per annum on amounts of Preferred Equity
contributions by the Company.
As of June 30, 2021, the Company has already made Equity contributions as the sole limited partner of
SVF2. The purpose of the Company’s contribution in the form of Preferred Equity interests is to secure
distributions in priority to holders of Equity interests and to enhance the efficiency of recovery ofinvestment funds.
c. Committed capital
As of June 30, 2021, the total committed capital for SVF2 is $40 billion. After the introduction of theProgram and the Preferred Equity, up to $2.6 billion will be reduced from the Company’s committed
capital and MgmtCo’s committed capital will be increased by such amount. The total committed capitalfor SVF2 as a whole amount will remain at $40 billion.
d. Closing conditions
A definitive agreement for the Program is scheduled to be entered into in the future.
e. Structures
Please refer to the following scheme diagram for “a. Co-investment Program with Restricted Right toReceive Distributions” and “b. Preferred Equity Contribution by the Company.”(a) Structure of SVF2 as of June 30, 2021

91SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2021(b) Structure of SVF2 after the introduction of the Program and the Preferred Equity

Note:* Includes portfolios that were announced to be listed as of June 23, 2021 and portfolios that were approved by the Board of
Directors to be excluded from the co-investment program.

f. Estimate of its financial effectReasonable estimate of the effect of this program and the introduction of the Preferred Equity on the
Company’s business performance cannot be made.
Also, in SoftBank Latin America Fund as well, principal conditions of an investment for the similar program
have been agreed with MgmtCo. MgmtCo’s committed capital is up to $0.8 billion and MgmtCo will holdapproximately 17% of the total Equity interests.

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