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 nine-month period ended December 31, 2017 (IFRS)Tokyo, February 7, 2018

1.

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

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

OperatingincomeIncomebefore incometax

AmountAmountNet sales
Amount%%%

Net income

Net income
attributable toowners of theparentTotal
comprehensive
incomeAmountAmountAmount%%%Nine-month period ended¥6,811,274 3.5 ¥1,148,829 23.6 ¥563,804 (41.0) ¥1,202,745 34.8 ¥1,014,944 20.0 ¥1,641,278 74.7
December 31, 2017
Nine-month period ended¥6,581,466 (0.3) ¥929,328 15.5 ¥954,925 12.6 ¥892,276 74.6 ¥845,773 97.2 ¥939,277 110.9
December 31, 2016

Basic earnings per
share (yen)Diluted earnings per
share (yen)Nine-month period ended
December 31, 2017¥918.29¥894.15

Nine-month period ended
December 31, 2016¥758.90¥751.58

Note:
Net sales, operating income, and income before income tax are presented based on the amounts from continuing operations only.

(2) Financial Position

Total assets

Total equity

Equityattributable toowners of theparentAs of December 31, 2017

¥29,412,718¥6,568,877¥5,505,689

18.7

As of March 31, 2017¥24,634,212¥4,469,730¥3,586,352

14.6

2.

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

Dividends
Dividends per shareFirst quarter
Fiscal year ended
March 31, 2017
Fiscal year ending
March 31, 2018
Fiscal year ending
March 31, 2018
(Forecasted)

Note:
Revision of forecasts on the dividends: No

Second quarter

Third quarter

Fourth quarter

Total

(yen)

(yen)

(yen)

(yen)

(yen)

-

22.00

-

22.00

44.00

-

22.00

22.00

44.00

* Notes(1) Significant changes in scope of consolidation (changes in scope of consolidation of specified subsidiaries): Yes
Newly consolidated: None
Excluded from consolidation: One company
SoftBank Group Japan GK
Please refer to page 33 “(1) Significant Changes in Scope of Consolidation for the Nine-month Period Ended December
31, 2017” under “2. Notes to Summary Information” for details.
(2) Changes in accounting policies and accounting estimates[1] Changes in accounting policies required by IFRSs: Yes[2] Changes in accounting policies other than those in [1]: No[3] Changes in accounting estimates: Yes
Please refer to page 33 “(2) Changes in Accounting Policies” and “(3) 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 December 31, 2017:
1,100,660,365 shares
As of March 31, 2017:
1,100,660,365 shares[2] Number of shares of treasury stock:
As of December 31, 2017:
11,161,873 shares
As of March 31, 2017:
11,378,076 shares[3] Number of average shares outstanding during nine-month period (April-December):
As of December 31, 2017:
1,089,453,785 shares
As of December 31, 2016:
1,114,476,150 shares* This interim consolidated financial report is not subject to interim review procedures.
* Note to forecasts on the consolidated results of operations and other items
Allocation of the consideration related to the consolidation of Arm in September 2016 was completed during thethree-month period ended June 30, 2017. As a result, each financial figure has been revised retrospectively for thenine-month period ended December 31, 2016. Descriptions regarding the future are estimated based on the information that
the Company is able to obtain at the present point in time and assumptions which are deemed to be reasonable. However,actual results may be different due to various factors.
On February 7, 2018, the Company will hold an earnings results briefing for the media, institutional investors, andfinancial institutions. This earnings results briefing will be broadcast live on our website in both Japanese and English athttps://www.softbank.jp/en/corp/irinfo/. The Data Sheet will also be posted on the Company’s website around 4 p.m. on
the same day at https://www.softbank.jp/en/corp/irinfo/presentations/.

SoftBank Group Corp. Consolidated Financial Report
For the nine-month period ended December 31, 2017

(Appendix)
Contents
1. Results of Operations ............................................................................................................................................... P. 2
(1) Overview of Results of Operations ................................................................................................................... P. 2
a. Consolidated Results of Operations ................................................................................................................ P. 3
b. Results by Segment ........................................................................................................................................ P. 8
(2) Overview of Financial Position ........................................................................................................................ P. 25(3) Overview of Cash Flows .................................................................................................................................. P. 31(4) Forecasts ........................................................................................................................................................... P. 32
2. Notes to Summary Information ............................................................................................................................... P. 33(1) Significant Changes in Scope of Consolidation for the Nine-month Period Ended December 31, 2017 ............ P. 33(2) Changes in Accounting Policies ........................................................................................................................ P. 33(3) Changes in Accounting Estimates ..................................................................................................................... P. 33
3. Condensed Interim Consolidated Financial Statements and Primary Notes .......................................................... P. 34(1) Condensed Interim Consolidated Statement of Financial Position .................................................................... P. 36(2) Condensed Interim Consolidated Statement of Income and Condensed Interim Consolidated Statement ofComprehensive Income .................................................................................................................................... P. 38(3) Condensed Interim Consolidated Statement of Changes in Equity ................................................................... P. 42(4) Condensed Interim Consolidated Statement of Cash Flows .............................................................................. P. 44(5) Significant Doubt about Going Concern Assumption ....................................................................................... P. 46(6) Notes to Condensed Interim Consolidated Financial Statements ...................................................................... P. 46
Definition of Company Names and Abbreviations Used in this Appendix
Company names and abbreviations used in this appendix, except as otherwise stated or interpreted differently in thecontext, are as follows:
Company names / Abbreviations

Definition

SoftBank Group Corp.
SoftBank Group Corp. (standalone basis)
The Company
SoftBank Group Corp. and its subsidiaries*Each of the following abbreviations indicates the respective company, and its subsidiaries, if any.
SprintSprint Corporation
Brightstar
Brightstar Global Group Inc.
Arm
Arm Holdings plc
SoftBank Vision Fund
SoftBank Vision Fund L.P.
SoftBank Vision Fund (AIV M1) L.P.
SoftBank Vision Fund (AIV M2) L.P.
Delta Fund
Fortress
Alibaba
The third quarter
The period
The end of the third quarter
The previous fiscal year
The previous fiscal year-end

SoftBank Vision Fund (AIV S1) L.P.
SB Delta Fund (Jersey) L.P.
Fortress Investment Group LLC
Alibaba Group Holding Limited
Three-month period ended December 31, 2017
Nine-month period ended December 31, 2017
December 31, 2017
Fiscal year ended March 31, 2017
March 31, 20171

SoftBank Group Corp. Consolidated Financial Report
For the nine-month period ended December 31, 2017

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

1. Sales and income increased yoy
Net sales increased 3.5%
- Sales increased in all segments
Operating income increased 23.6%- Income from SoftBank Vision Fund and Delta Fund of ¥236.4 billion- Sprint’s operating income surged
Net income attributable to owners of the parent increased 20.0%- U.S. tax reform boosted Sprint’s income by ¥687.7 billion
2. $27.5 billion invested to date at the SoftBank Vision Fund and Delta Fund segment
3. Consolidated Fortress

About the SoftBank Vision Fund and Delta Fund segment
The Company established the SoftBank Vision Fund and Delta Fund segment as a new reportable segment during the threemonths ended June 30, 2017 (the “first quarter”) upon the first major closing of SoftBank Vision Fund on May 20, 2017.

About the Consolidation of Fortress
The Company acquired Fortress on December 27, 2017 for $3,162 million (¥358,612 million), making it a subsidiary.
Consideration for the acquisition of $2,650 million (¥300,484 million), excluding the payment of $512 million (¥58,128
million) for a transaction that remunerates employees and principals of Fortress on the condition of continuing employment,
has been allocated to the acquired assets and assumed liabilities based on the fair value as of the acquisition date (December
27, 2017), as follows. For details, see “Fortress” under “3. Business Combinations” in “(6) Notes to Condensed Interim
Consolidated Financial Statements” in “3. Condensed Interim Consolidated Financial Statements and Primary Notes.”
Fair value on acquisition date (Dec. 27, 2017)
Millions of U.S. dollars

Millions of yen

Consideration transferred

2,650

300,484

Fair value of assets and liabilities, and goodwill on the acquisition date
Intangible assets
Other assets and liabilities (net)Non-controlling interests
Goodwill

1,558
797
131
164

176,690
90,383
14,85018,561

Note: The main component of intangible assets is management contracts of ¥128,323 million. The management contracts reflect excessive
earnings power in the future expected from the agreement which Fortress entered into regarding the asset managements through funds. The
management contracts will be amortized over 1.5 to 10 years on a straight-line method.

The results of operations of Fortress have been reflected since December 28, 2017 in “Other” in the Company’s segments.
Operating loss of Fortress was ¥4,262 million for the period. This included a one-time expense of ¥3,788 million forsettlement of the restricted stock units held by employees and principals of Fortress prior to the acquisition date.

2SoftBank Group Corp. Consolidated Financial Report
For the nine-month period ended December 31, 2017a. Consolidated Results of Operations(Millions of yen)

Nine months ended December 31
2016
2017
Continuing operations
Net sales
Operating income (excluding income from
SoftBank Vision Fund and Delta Fund)

ChangeChange %6,581,466

6,811,274

229,808

3.5%

929,328

912,402(16,926)(1.8%)

Operating income from SoftBank Vision
Fund and Delta Fund
Operating income
Income before income tax
Net income from continuing operations

929,328
954,925
338,971

236,427
1,148,829
563,804
1,202,745

236,427
219,501(391,121)
863,774

23.6%(41.0%)
254.8%

Discontinued operations
Net income from discontinued operations

553,305-(553,305)-

Net income
Net income attributable to owners of the parent

892,276845,773

1,202,745
1,014,944

310,469
169,171

34.8%
20.0%

Reference: Average exchange rates used for translations
Fiscal year ended
March 2017
Q1
Q2
Q3
Q4
USD / JPY

¥109.07¥102.91¥108.72¥113.76Q1¥111.61

Fiscal year ending
March 2018
Q2
Q3
¥111.38¥112.74

An overview of the consolidated results of operations for the period is as follows:
Continuing Operations(a) Net Sales
Net sales increased by ¥229,808 million (3.5%) year on year to ¥6,811,274 million. Net sales increased at the Domestic
Telecommunications segment, the Sprint segment, the Yahoo Japan segment, the Distribution segment, and the Arm segment. Arm’s net sales reflected results of operations of Arm since September 6, 2016.

(b) Operating Income (excluding income from SoftBank Vision Fund and Delta Fund)
Operating income (excluding income from SoftBank Vision Fund and Delta Fund) decreased by ¥16,926 million (1.8%)
year on year to ¥912,402 million. Segment income increased by ¥146,655 million in the Sprint segment. Meanwhile, segment income deteriorated by ¥38,786 million in the Domestic Telecommunications segment, ¥7,888 million in the Yahoo
Japan segment, ¥59,781 million in the Distribution segment, and ¥31,787 million in the Arm segment. Segment loss of theDistribution segment included impairment loss of ¥ 50,497 million for Brightstar.

(c) Operating Income from SoftBank Vision Fund and Delta Fund
Operating income from SoftBank Vision Fund and Delta Fund was ¥236,427 million (not recorded in the same period of
the previous fiscal year). This included unrealized gain on valuation of investments of ¥251,108 million, interest and dividend income from investments of ¥3,744 million, and operating expenses of ¥18,425 million. Unrealized gain on valuationof investments mainly reflected an increase in the fair value of NVIDIA Corporation (“NVIDIA”) shares held by SoftBank

3

SoftBank Group Corp. Consolidated Financial Report
For the nine-month period ended December 31, 2017

Vision Fund and recorded as financial assets accounted for using FVTPL.
(d) Operating Income
As a result of (b) and (c), operating income increased by ¥219,501 million (23.6%) year on year to ¥1,148,829 million.
(e) Finance Cost
Finance cost increased by ¥39,974 million (11.6%) year on year to ¥383,337 million, mainly due to increases in interest
expense of ¥33,255 million at SoftBank Group Corp. and ¥2,536 million at Sprint. Interest expense at Sprint declined year
on year in U.S. dollar terms but increased in yen terms due to the weaker yen against the U.S. dollar.
(f) Income on Equity Method Investments
Income on equity method investments increased by ¥113,603 million (55.2%) year on year to ¥319,591 million. This was
mainly due to an increase in income on equity method investments related to Alibaba of ¥123,644 million (59.0%) year on
year to ¥333,256 million.
The difference between Alibaba’s net income (IFRS basis) for the nine months ended September 30, 2017 ((A) in thetable below) and net income (U.S. GAAP basis) ((B) below) is mainly due to a gain from remeasurement relating to business combination of CNY 22,400 million that arose in relation to consolidation of Cainiao Smart Logistics Network Limitedin October 2017. This was recorded in net income in accordance with IFRSs as an out-of-period transaction.
Reference: Net Income of Alibaba and the Company’s Income on Equity Method Investments
Nine months ended September 301
2016
2017

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

Million CNY

Million CNY

Million CNY

20,538(B) 42,998

22,460Million CNY

Million CNY

Million CNY

41,913(A) 66,696

24,783Nine months ended December 31
2016
2017

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

1

30.26%

29.41%(0.85%)

Million CNY

Million CNY

Million CNY

13,224

19,7366,512¥15.85¥16.89¥1.04

Million yen

Million yen

Million yen

209,612333,256

123,644

The Company applies the equity method to the financial statements of Alibaba on a three-month time lag, as it is impracticable to conform the reporting period of Alibaba due to the contract with Alibaba, among other reasons. The Company performs necessary adjustments for material transactions
or events arising during the lag period and publicly announced by Alibaba.

4SoftBank Group Corp. Consolidated Financial Report
For the nine-month period ended December 31, 2017(g) Gain on Sales of Shares of Associates
Gain on sales of shares of associates was ¥1,804 million (gain of ¥238,101 million in the same period of the previous fiscal
year). In the same period of the previous fiscal year, the Company sold a portion of Alibaba shares to Alibaba, two Singaporean sovereign wealth funds, and Alibaba Partnership.2(h) Foreign Exchange Gain and Loss
Foreign exchange gain was ¥20,100 million (gain of ¥34,222 million in the same period of the previous fiscal year).
(i) Derivative Gain and Loss
Derivative loss was ¥485,198 million (loss of ¥95,875 million in the same period of the previous fiscal year). This was
mainly attributable to a loss of ¥510,278 million recorded in relation to a collar transaction embedded in a variable prepaid
forward contract for Alibaba shares (see Note below).
The collar transaction is measured at the end of each quarter based on fair value (primarily linked to the share price of
Alibaba). The cumulative derivative gain and loss for the three years, from the conclusion of the variable prepaid forward
contract on June 10, 2016 until the settlement date, will be a loss of $900 million, equal to the amount of derivative assets
initially recognized.
Note: For details of the variable prepaid forward contract, see “(2) Transaction for sale of Alibaba shares by variable prepaid forward
contract” under “8. Interest-bearing debt” in “(6) Notes to Condensed Interim Consolidated Financial Statements” in “3. Condensed
Interim Consolidated Financial Statements and Primary Notes.”(j) Changes in Third-party Interests in SoftBank Vision Fund and Delta Fund
Changes in third-party interests in SoftBank Vision Fund and Delta Fund increased ¥108,163 million (negative impact on
income; not recorded in the same period of the previous fiscal year). Of the third-party interests in SoftBank Vision Fundand Delta Fund presented in Condensed Interim Consolidated Statement of Financial Position, the fluctuations arising from
SoftBank Vision Fund and Delta Fund’s business activities was recorded as the changes.
(k) Other Non-operating Income and Loss
Other non-operating income was ¥50,178 million compared to a loss of ¥13,476 million in the same period of the previous
fiscal year. The primary components for the period were as follows:(Millions of yen)

Dilution gain fromchanges in equity interest

Nine months ended December 31
2016
2017
75,06038,922Gain (loss) from financial
instruments at FVTPL(39,281)8,069

Impairment loss on assets
classified as held for sale

(42,540)-

Primary components
Private placement of new shares by Alibaba
Recognition of gain in the fair value of investments,
primarily in Southeast Asia and India
Loss due to a difference between the valuation of the248,300,000 GungHo Online Entertainment, Inc.
shares tendered by the Company in the same period of
the previous fiscal year at the tender offer price of¥294 per share and their carrying amountNote: See “16. Other non-operating income (loss)” under “(6) Notes to Condensed Interim Consolidated Financial Statements” in “3.
Condensed Interim Consolidated Financial Statements and Primary Notes” for details.
2

Alibaba Partnership is not an affiliate of Alibaba.

5SoftBank Group Corp. Consolidated Financial Report
For the nine-month period ended December 31, 2017(l) Income before Income Tax
As a result of (d) to (k), income before income tax decreased by ¥391,121 million (41.0%) year on year to ¥563,804 million.

(m) Income Taxes
Income taxes were credited ¥638,941 million (profit), compared with an expense of ¥615,954 million for the same periodof the previous fiscal year. Following the enactment of the U.S. Tax Cuts and Jobs Act in December 2017, deferred tax
liabilities of ¥829,762 million was reversed at Sprint, resulting in a decline in income taxes of ¥818,342 million and anincrease in other comprehensive income of ¥8,244 million. Details are as follows.
Reduction in the U.S. federal corporate tax rate
From January 1, 2018, the federal corporate tax rate was reduced from 35% to 21%. This resulted in a partial reversal ofdeferred tax liabilities of ¥593,137 million related to FCC licenses and other assets of Sprint that were recognized basedon the previous income tax rate at the time of its acquisition in 2013. Income taxes decreased by ¥591,773 million.
Abolition of time limit on use of future loss carryforwards
Net operating losses generated in tax years beginning after December 31, 2017 may be carried forward indefinitely. For
Sprint, its tax year starts from April, therefore net operating losses generated after April 1, 2018 may be carried forward
indefinitely. In Sprint, for certain deductible temporary differences where deferred tax assets could not be previously realized, it was likely to be recoverable because the taxable temporary differences from assets with indefinite lives, such as
FCC licenses, may be a source of future taxable income. As a result of this change, ¥236,625 million of deferred tax assets
was recognized (offset by deferred tax liabilities). Income taxes decreased by ¥226,569 million, and other comprehensive
income increased by ¥8,244 million.

(n) Net Income from Continuing Operations
As a result of (l) and (m), net income from continuing operations increased by ¥863,774 million (254.8%) year on year to¥1,202,745 million.

Discontinued Operations(o) Net Income from Discontinued Operations
Net income from discontinued operations was zero (income of ¥553,305 million in the same period of the previous fiscal
year). Income after income tax from Supercell Oy of ¥28,246 million and after-tax gain on sale of Supercell shares of¥525,059 million were recorded in the same period of the previous fiscal year. Supercell Oy was excluded from the scopeof consolidation on July 29, 2016.

(p) Net Income
As a result of (n) and (o), net income increased by ¥310,469 million (34.8%) year on year to ¥1,202,745 million.

6

SoftBank Group Corp. Consolidated Financial Report
For the nine-month period ended December 31, 2017(q) Net Income Attributable to Owners of the Parent
After deducting net income attributable to non-controlling interests such as those of Sprint and Yahoo Japan Corporationfrom (p), net income attributable to owners of the parent increased by ¥169,171 million (20.0%) year on year to ¥1,014,944
million.
Of Sprint’s decrease in income taxes of ¥818,342 million described in (m), ¥687,744 million was included in net income
attributable to owners of the parent, corresponding to SoftBank Group Corp.’s 84.04% ownership stake in Sprint.

(r) Comprehensive Income
Comprehensive income increased by ¥702,001 million year on year to ¥1,641,278 million. Of this, comprehensive income
attributable to owners of the parent increased by ¥566,901 million to ¥1,450,381 million.

7

SoftBank Group Corp. Consolidated Financial Report
For the nine-month period ended December 31, 2017b. Results by Segment
The Company’s reportable segments are components of business activities for which decisions on resource allocation andassessment of performance are made. The Company has six reportable segments: Domestic Telecommunications, Sprint,
Yahoo Japan, Distribution, Arm, and SoftBank Vision Fund and Delta Fund. The Company established the SoftBank
Vision Fund and Delta Fund segment during the first quarter.

The main businesses and core companies of each reportable segment are as follows:
Main businesses

Core companies

Domestic Telecommunications· Provision of mobile communications services in Japan· Sale of mobile devices in Japan· Provision of broadband services to retail customers in Japan· Provision of telecom services to corporate customers in Japan,such as data communications and fixed-line telephone services

SoftBank Corp.
Wireless City Planning Inc.

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

Sprint Corporation

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

Yahoo Japan Corporation
ASKUL Corporation

Distribution· Distribution of mobile devices overseas· Sale of PC software, peripherals, and mobile device accessories
in Japan

Brightstar Corp.
SoftBank Commerce & Service
Corp.

Arm

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

Arm Holdings plc

Segments
Reportable segments

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

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

SoftBank Vision Fund L.P.
SB Delta Fund (Jersey) L.P.
Fortress Investment Group LLC
Fukuoka SoftBank HAWKS Corp.

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

8SoftBank Group Corp. Consolidated Financial Report
For the nine-month period ended December 31, 2017(a) Domestic Telecommunications Segment
1.

2.
3.

Subscriber increase of 1.13 million for smartphones and 1.07 million for SoftBank Hikari from previous fiscal year end- Upfront investments of Home Bundle Discount Hikari Set, Giga Monster and collaboration with Yahoo
Japan contributed, as well as the introduction of Half Price Support
Sales increased 0.3% yoy. Segment income declined 6.0% yoy, within the range of the full-year forecast (maximum yoy decline of 7%)
Free cash flow of ¥399.9 billion, a steady progress on full-year forecast of over ¥500 billion(Millions of yen)

Nine months ended December 31
2016
2017
Net sales

ChangeChange %2,400,670

2,406,870

6,200

0.3%

Segment income

651,484

612,698(38,786)(6.0%)

Depreciation and amortization

343,205351,322

8,117

2.4%

Adjusted EBITDA

994,689

964,020(30,669)(3.1%)

Capital expenditures(acceptance basis)

182,556

216,999

34,443

18.9%

Free cash flow

434,896

399,868(35,028)(8.1%)

480,825

427,540(53,285)(11.1%)

Reference:
Adjusted free cash flow

Note: Adjusted free cash flow is calculated by adding proceeds from the borrowings through the securitization of handset installment sales receivables and deducting repayments of such borrowings, to/from free cash flow.

OVERVIEW
Even as Japan’s telecommunications market approaches maturity, to achieve medium- to long-term growth, the domestic
telecommunications business is working to strengthen the foundation for future earnings by expanding smartphone andbroadband subscribers and advancing investment for creating new earnings opportunities, while aiming to generate astable free cash flow.
Main Initiatives
 Expand sales of Home Bundle Discount Hikari Set- Provide a discount on a smartphone and broadband bundle subscription
 Promote SoftBank brand differentiation strategy- High-volume flat-rate data plans Giga Monster (20GB) and Ultra Giga Monster (50G)- Half Price Support that effectively enables purchase of smartphones at half price Expand sales of sister brand Y!mobile Collaborate with Yahoo Japan Corporation focusing on e-commerce Expand business domain- Collaborate with the Company’s investees such as WeWork Companies Inc. and Alibaba, and others- Invest in growth domains such as cyber security and FinTech

9

SoftBank Group Corp. Consolidated Financial Report
For the nine-month period ended December 31, 2017

FINANCIAL RESULTS(Millions of yen)

Nine months ended December 31
2016
2017
Telecom service revenue

ChangeChange %1,828,791

1,803,061(25,730)(1.4%)

Mobile communications

1,434,260

1,362,173(72,087)(5.0%)

3

Telecom

1,261,380

1,192,402(68,978)(5.5%)

4

172,880

169,771(3,109)(1.8%)

194,749
199,782

240,022200,866

45,273
1,084

23.2%
0.5%

571,879

603,809

31,9305.6%

2,400,670

2,406,870

6,200

0.3%

Service

Broadband
Fixed-line telecommunications
Product and other sales
Total net sales

Net sales increased by ¥6,200 million (0.3%) year on year to ¥2,406,870 million. Of this, telecom service revenue
decreased by ¥25,730 million (1.4%) to ¥1,803,061 million, and product and other sales increased by ¥31,930 million(5.6%) to ¥603,809 million.
Telecom service revenue decreased due to a ¥72,087 million (5.0%) year-on-year decrease in mobile communications
revenue, reflecting a decrease in mobile data devices, an increase in the total amount of discounts (negative impact onrevenue) associated with the growth in the cumulative number of applications of the Home Bundle Discount Hikari Set,
and the introduction of Half Price Support.5 Broadband revenue increased by ¥45,273 million (23.2%) in line with
subscriber growth for the SoftBank Hikari fiber-optic service.
Product and other sales increased mainly due to an increase in sales of customer-premises equipment for broadband
services and smartphones. Sales of smartphones increased due to an increase in the average shipment price ofsmartphones, despite a decline in the number of units shipped.

Segment income decreased by ¥38,786 million (6.0%) year on year to ¥612,698 million. This was due to an increasein operating expenses (cost of sales and selling, general and administrative expenses) of ¥44,986 million (2.6%) year on
year, despite the increase in net sales.
The main year-on-year fluctuations in operating expenses were an increase of ¥21,983 million (11.6%) in telecommunications network charges, which accompanied the growth in the number of SoftBank Hikari subscribers. Cost of
products also increased by ¥10,023 million (2.3%) due to an increase in the average purchase price of smartphones,
despite a decline in the number of units shipped. Depreciation and amortization expenses increased by ¥8,117 million(2.4%) due to accelerating the depreciation of equipment that had become unnecessary ahead of the termination of 3G
on 1.7 GHz services planned in March 2018. Expenses also increased by ¥7,845 million (73.2%) related to Yahoo!
Premium6 membership service offerings to smartphone customers and optional services for SoftBank Hikari. On the3

Telecom revenue of mobile communications services, etc., under the SoftBank and Y!mobile brands
Device warranty service revenue, content-related revenues, advertising revenues, etc.
5
Please see the next page for details regarding the impact of the Half Price Support program and the 48 monthly installment sales.
6
An offering that allows smartphone subscribers an unlimited use of special offers without additional charges under Yahoo! Premium membershipservice, which is usually provided at a monthly charge of ¥462 by Yahoo Japan Corporation
4

10

SoftBank Group Corp. Consolidated Financial Report
For the nine-month period ended December 31, 2017

other hand, sales commission fees decreased by ¥12,587 million (5.3%) due to a decline in the average cost of salescommission fees for smartphones.

Adjusted EBITDA decreased by ¥30,669 million (3.1%) year on year to ¥964,020 million.
Capital expenditures (acceptance basis) increased by ¥34,443 million (18.9%) to ¥216,999 million due to the expansion of service areas and improvement of quality for LTE network.
Free cash flow decreased by ¥35,028 million (8.1%) year on year to ¥399,868 million, mainly due to the decreaseof adjusted EBITDA and an increase in the amount of income taxes paid. The amount of income taxes paid increased
because the loss carryforwards fully utilized in the fiscal year ended March 2016 had subdued the amount of income
taxes paid in the same period of the fiscal year. The loss carryforwards were exhausted in the fiscal year ended March
2016.

Forecast for the Fiscal Year Ending March 2018
 Segment income: maximum year-on-year decline of 7%
 Capital expenditure (acceptance basis): ¥392.5 billion (¥320.6 billion in the previous fiscal year) Free cash flow: continue to be over ¥500 billion (¥561.8 billion in the previous fiscal year)- Down year on year due to a negative impact from: a decrease in adjusted EBITDA due to upfront investments, anincrease in income taxes paid due to the reason mentioned above, an increase in working capital mainly associatedwith the expansion of smartphone sales, and an increase in investments for expanding earnings opportunities

Reference: Impact of the Half Price Support program and 48 monthly installment sales
The Half Price Support program, which was launched in September 2017, enables customers to purchase eligible
smartphones in 48 monthly installments, with the remaining monthly payments waived if the customer trades intheir used handset to upgrade to a designated new model after 24 monthly installments.
Revenues
Negative impact: The estimated waiver amount of installment payments less the estimated trade-in value ofhandsets is deducted from telecom revenue in the contract months. The impact is not included in the calculationof ARPU.
Positive impact: The monthly discount (negative impact on telecomm revenue) at 48 months installment payment
program is less than the discount at 24 months installment program.

Cash flow from operating activities
Negative impact: The amount of handset payment received each month at 48 months installment payment program is less than that at 24 months installment program.
Positive impact: The monthly discount (negative impact on telecom revenue) at 48 months installment payment
program is less than the discount at 24 months installment program.

11

SoftBank Group Corp. Consolidated Financial Report
For the nine-month period ended December 31, 2017

OPERATIONS
Mobile Communications Service
Subscribers (Main Subscribers7)(Thousands)

Cumulative subscribers

December 31, 2017

Change from March 31, 201732,996

596

Cumulative subscribers increased from the previous fiscal year-end, with smartphone net additions of 1,128,000.8 In
smartphones, the number of Y!mobile subscribers continued to grow steadily, while SoftBank subscribers also grew due
to a successful promotion encouraging feature phone users to switch to smartphones. Conversely, subscribers for featurephones and mobile data communications devices declined from the previous fiscal year-end. Demand for mobile data
communications devices continued to decline due to the impact of introducing Giga Monster.
Cumulative subscribers at the end of the third quarter included 182,000 subscribers to Wireless Home Phone, a new
home-phone voice calling service using the mobile network, which was launched in July 2017.

Home Bundle Discount Hikari Set Applications(Thousands)

December 31, 2017

Change fromMarch 31, 2017

Mobile communications service

7,617

1,588

Broadband service

3,671

766

Number of Units Sold (Main Subscribers)(Thousands)

Nine months ended
December 31, 2017

YoY Change

Number of units sold

7,782

(61)

New subscriptions

3,419

70

Device upgrades

4,363

(131)

The number of units sold for mobile devices of main subscribers decreased year on year, reflecting the decrease in thenumber of feature phones and mobile data communications devices sold, despite an increase in sales of smartphones,
due to the reasons described above.

7

The number of main subscribers includes subscribers to the Wireless Home Phone service. Number of units sold, ARPU, and churn rate are calculated
and presented excluding this service.
8
Net addition of cumulative smartphone subscribers. Includes device upgrades.

12SoftBank Group Corp. Consolidated Financial Report
For the nine-month period ended December 31, 2017

ARPU (Main Subscribers)
Three months ended
December 31, 2017

YoY Change¥4,380¥(160)

Telecom ARPU

¥3,820¥(160)

Service ARPU

¥560

¥0

Total ARPU

Total ARPU declined year on year, due to the dilutive impact of an increased proportion of Y!mobile smartphones, whichhave a lower service charge. Further penetration of the Home Bundle Discount Hikari Set within the cumulative subscriber base also lowered total ARPU by increasing the discount amount in telecom ARPU.

Churn Rate (Main Subscribers)
Three months ended
December 31, 2017

YoY Change

Phone churn rate

0.83%

0.06 pp improvement

Churn rate

1.10%

0.14 pp improvement

The phone churn rate improved year on year, reflecting improved churn rates for both feature phones and smartphones.
The improvement in the feature phone churn rate mainly reflected a successful promotion encouraging feature phoneusers to switch to smartphones. The improvement in smartphones reflected the expansion of Home Bundle DiscountHikari Set and a smaller-than-usual adverse impact from an increased churn rate in the autumn sales competition season.
Along with the improvement in the phone churn rate, cancellations for mobile data communications devices also
declined, leading to a year-on-year improvement in the churn rate of main subscribers as well.

Broadband Service
Subscribers
December 31, 2017

Change fromMarch 31, 2017

Cumulative subscribers

6,832

687

SoftBank Hikari

4,666

1,074

The number of broadband service subscribers increased during the period, led by SoftBank Hikari. The number of SoftBank Hikari subscribers successfully increased due to focused efforts to expand sales of the Home Bundle DiscountHikari Set, and to encourage users to switch over from other telecom carriers’ fiber-optic services.

13

SoftBank Group Corp. Consolidated Financial Report
For the nine-month period ended December 31, 2017(b) Sprint Segment
1. Segment income doubled yoy, with one-time gains and progress in cost reductions
2. Postpaid phone net additions for the 10th consecutive quarter
3. Aiming to increase cash capex for further network improvement(Millions of yen)

Nine months ended December 31
2016
2017
Net sales

ChangeChange %2,652,009

2,722,153

70,1442.6%

145,186

291,841

146,655

101.0%

Segment income
Depreciation and amortization

645,486

708,30762,8219.7%

9(2,949)(61,323)(58,374)-

Adjusted EBITDA

787,723

938,825

151,10219.2%

24,80824,323(485)(2.0%)(23,139)(22,070)

1,069

4.6%

(304)

355

659

-

354

479

125

35.3%

Other adjustments

U.S. dollar-based results (IFRSs)
Net sales
Cost of sales, and selling, general and administrative expenses(Millions of U.S. dollars)

Other operating income (loss)
Gain on spectrum license exchange
Litigation

-

366

366

-

Gain (loss) on contract termination

(113)

5

118

-

Loss on disposal of property, plant and equipment

(370)

(522)

(152)

-

Others

(175)

27

202

-

Segment income

1,365

2,608

1,243

91.1%

Depreciation and amortization

6,038

6,329

291

4.8%

9

(38)

(547)

(509)

-

Adjusted EBITDA

7,365

8,390

1,025

13.9%

Reference: Disclosed by Sprint (U.S. GAAP)
Capital expenditure (cash base)

2,951

4,286

1,335

45.2%

Telecommunications network equipment

1,421

2,499

1,078

75.9%

Leased devices

1,530

1,787

257

16.8%

Adjusted free cash flow

527

1,056

529

100.4%

Other adjustments(Millions of U.S. dollars)

OVERVIEW
Sprint has been continuing its effort to establish a trajectory for long-term growth by increasing net sales together with
implementing large-scale cost reductions. The Company continues to regard Sprint as a strategically important business.
After considering various strategic options, the Company ceased merger discussions between Sprint and U.S. mobile
operator T-Mobile US, Inc. in November 2017. Sprint will continue making a fullest use of its ample spectrum holdings

9

Primary components include gain/loss from non-recurring factors, such as gain from spectrum license exchanges and income and loss on contract
termination among items included in other operating income and loss, and negative impacts from hurricanes included in net sales and cost of sales
and selling, general and administrative expenses.

14SoftBank Group Corp. Consolidated Financial Report
For the nine-month period ended December 31, 2017

to further improve network quality and increase customer values, aiming to expand sales by increasing the number of
postpaid phone subscribers, which are its largest source of revenue and profit. In the fiscal year ending March 2019,
Sprint expects to continue to increase network cash capital expenditure for promoting effective use of its spectrum. At
the same time, Sprint will continue to reduce costs by increasing the efficiency of operational management. Sprint isalso endeavoring to generate medium- to long-term synergies with the Company’s other subsidiaries and investees.
FINANCIAL RESULTS
Results in U.S. dollars
Net sales decreased by $485 million (2.0%) year on year to $24,323 million. An increase in device revenue, which
was driven by increases of sales of used devices to third parties and mobile handset lease revenues, was outweighed bya decline in telecom service revenue resulting from a change in the device insurance service and the introduction ofsales promotions to acquire new customers.

Segment income increased by $1,243 million (91.1%) year on year to $2,608 million. Operating expenses (cost of
sales and selling, general and administrative expenses) decreased by $1,069 million (4.6%) year on year due to a decline
in expenses, mainly in relation to the network and the change in the device insurance service, more than offsetting thedecrease in net sales. In addition, other operating income and loss improved by $659 million year on year.
The improvement in other operating income and loss was due to receiving settlements for certain patent infringement
lawsuits, an increase in gain from spectrum license exchanges, and a decrease in loss on contract termination, among
other factors, despite an increase in loss on disposal of property, plant and equipment due to changes of network plans.

Adjusted EBITDA increased by $1,025 million (13.9%) year on year to $8,390 million.
Adjusted free cash flow increased by $529 million (100.4%) year on year to $1,056 million (disclosed by Sprint,
U.S. GAAP). The increase reflected an increase in net cash provided by operating activities, despite an increase in
expenditure for acquisition of telecommunications network equipment and leased devices. Going forward, in order todifferentiate itself from other operators, Sprint plans to invest more aggressively in its network and making full use of
its ample spectrum.
Results in yen
In yen terms, net sales increased by ¥70,144 million (2.6%) year on year to ¥2,722,153 million, segment income increased by ¥146,655 million (101.0%) year on year to ¥291,841 million. Adjusted EBITDA also increased by ¥151,102
million (19.2%) year on year to ¥938,825 million. These increases reflected the weaker yen against the U.S. dollar
compared to the same period of the previous fiscal year.

15

SoftBank Group Corp. Consolidated Financial Report
For the nine-month period ended December 31, 2017

OPERATIONS
Cumulative Subscribers10 11(Thousands)

December 31, 2017

Change fromMarch 31, 201731,942366

26,616537

Prepaid

8,997

309

Wholesale and affiliate

13,642267

Total

54,581

942

Postpaid(incl.) Phone

Net Additions (Excluding special factors11)(Thousands)

Three months ended
December 31, 2017

YoY Change

256

(149)

Postpaid

184

(184)

Prepaid(incl.) Phone

63

523

Wholesale and affiliate

66

(553)

Total

385

(179)

Postpaid phone subscriber net additions were subdued at 184,000 mostly due to an increase in deactivations. Prepaid
subscribers marked net additions for the fourth consecutive quarter.

10

Sprint is no longer reporting Lifeline program subscribers due to recent regulatory changes resulting in tighter program restrictions. Sprint has excluded them from its disclosure of the number of prepaid and wholesale and affiliate subscribers from the first quarter. Past figures have been retrospectively revised. The Lifeline program is a program where carriers in the U.S. receive a subsidy from a government fund to provide discounted
services to low-income subscribers.
11
Cumulative subscribers are impacted by the following special factors; however, these are not included in net additions (losses).
Factor 1: In May 2016, Sprint’s affiliate company acquired another operator. An affiliate company refers to a local wireless operator that sells andprovides Sprint-branded services and products with its own self-operated telecom network while paying Sprint for brand and spectrum usage. This
resulted in adjustments to subscriber numbers that continued to occur during the period.
Factor 2: During the first quarter, 2,000 Wi-Fi connections were excluded from the postpaid subscriber base.
Factor 3: During the three-month period ended September 30, 2017, one of the prepaid data plans was discontinued. Accordingly, 49,000 prepaid
subscribers for the plan were excluded from the prepaid subscriber base
Factor 4: During the third quarter, Sprint established a joint venture with PRWireless HoldCo, LLC. As a result, 169,000 prepaid subscribers wereadded.

16

SoftBank Group Corp. Consolidated Financial Report
For the nine-month period ended December 31, 2017

Churn Rate12 (Postpaid)
Three months ended
December 31, 2017
1.71%
1.80%

Postpaid phone churn rate
Postpaid churn rate

YoY Change
0.14 pp deterioration
0.13 pp deterioration

The postpaid phone churn rate deteriorated due to network quality in certain areas which has not sufficiently improved
and the company’s decision to shift its focus to selectively manage both higher ARPU customers and increasing customers rolling off device commitments, in order to maximize the net present value of the base. Introduction of unlimited
data plans by other carriers in February 2017, which has followed Sprint, also gave an impact.
ABPU (Postpaid Phone)Three months ended
December 31, 2017

YoY Change

ARPU$51.26$(5.86)

Average equipment billings per user

$17.28$2.63

Postpaid phone ABPU

$68.54$(3.23)

Postpaid phone ABPU decreased primarily due to the impacts of the change in the device insurance program in January
2017, promotions for new customers with multiple line subscriptions, and hurricane-related credits. Normalizing for thedevice insurance program change and hurricane-related credits, ABPU would have decreased less than 1% year on year.
More information about Sprint’s U.S. GAAP-based financial results and business operations is available on the investor
relations section of its website at investors.sprint.com/.

(c) Yahoo Japan Segment(Millions of yen)

Nine months ended December 31
2016
2017

ChangeChange %Net sales

630,800

651,544

20,744

3.3%

Segment income

150,544

142,656(7,888)(5.2%)

Depreciation and amortization
Gain from remeasurement
relating to business combination

28,631

31,959

3,328

11.6%

(19)

-

19

-

Other adjustments-(7,896)(7,896)-

Adjusted EBITDA

179,156

166,719(12,437)(6.9%)

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

12

In the first quarter, Sprint changed the definition of certain gross additions and deactivation for postpaid subscribers. A newly acquired customer who
leaves shortly after activation was previously counted as a deactivation but is now counted as a deduction to gross additions. This change has no
impact on net additions but resulted in lower gross additions and lower deactivations by an equal amount in the quarter.

17

SoftBank Group Corp. Consolidated Financial Report
For the nine-month period ended December 31, 2017(d) Distribution Segment(Millions of yen)

Nine months ended December 31
2016
2017

ChangeChange %939,586

1,024,811

85,225

9.1%

19,108(40,673)(59,781)

-

5,337

5,175

(162)

(3.0%)

Other adjustments-

50,49750,497-

Adjusted EBITDA

24,445

14,999(9,446)(38.6%)Net sales
Segment income (loss)
Depreciation and amortization

Impairment losses totaling ¥50,497 million was recorded on Brightstar’s goodwill, intangible assets, and property, plantand equipment as their recoverable amounts fell below their carrying amounts as a result of a revision to Brightstar’s
business plan during the period. This dragged down segment income by ¥59,781 million year on year, resulting in a lossof ¥40,673 million for the period. Meanwhile, results of operations of SoftBank Commerce & Service Corp. have beensolid, mainly due to a contribution from sales of PCs and servers to corporate customers.

(e) Arm Segment
1. U.S. dollar-based revenue increased 2% yoy in the third quarter- Solid adoption of Arm technology continued in target markets of mobile, networking, servers and IoT
2. Continued reinforcement of R&D capability- Headcount increased 856 (17.6%) from the previous fiscal year-end(Millions of yen)

Nine months ended December 31
2017
2016

ChangeChange %Net sales

68,855

152,42283,567121.4%

Segment income (loss)

9,922(21,865)(31,787)-

Depreciation and amortization
Gain from remeasurement
relating to business combination

18,19946,15827,959153.6%(18,168)-

18,168-Other adjustments

25,780-(25,780)-

Adjusted EBITDA

35,73324,293(11,440)(32.0%)

Note: The Arm segment reflects Arm’s results of operations since September 6, 2016. Retrospective adjustments were made to thefigures for the same period of the previous fiscal year due to the completion of the purchase price allocation related to the acquisition of
Arm.

OVERVIEW
Arm’s operations are primarily the licensing of semiconductor intellectual property (IP), including the designs of energyefficient microprocessors and associated technologies. Since the acquisition, Arm has been accelerating investment inresearch and development by hiring more engineers. With the expansion of its engineering capability, Arm intends todevelop new technologies faster, with a focus on artificial intelligence, computer vision, and augmented reality. Arm isalso investing in creating new revenue streams from adjacent markets, especially in the Internet of Things (IoT).
Net sales are comprised of (i) licenses to Arm technology, (ii) royalties arising from the resulting sale of licensees’
products based on Arm technology, and (iii) revenues from the sale of software tools.

18SoftBank Group Corp. Consolidated Financial Report
For the nine-month period ended December 31, 2017

FINANCIAL RESULTS
Net sales increased by ¥83,567 million (121.4%) year on year to ¥152,422 million. The main factor behind the increase
was that Arm’s results were reflected only since September 6 to December 31, 2016 in the same period of the previous
fiscal year, while its results were reflected for the full nine months in the period.
Segment loss was ¥21,865 million, a deterioration of ¥31,787 million from the same period of the previous fiscal year.
During the period, Arm increased the number of its employees, mainly engineers, by a net 856 people, up 17.6% overall
from the end of the previous fiscal year, as it continues to strengthen its R&D capability. Arm has also been enhancing
its employee compensation system, including the start of a new performance-linked incentive program. Operating expenses in the period also included ¥40,672 million in amortization expenses recorded for intangible assets recognizedin the purchase price allocation for the Arm acquisition.
Adjusted EBITDA was ¥24,293 million, a decrease of ¥11,440 million (32.0%) year on year.

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

Technology licensing
Technology royalties
Software and services
Total net sales

Pro
forma
89
240
24
353

Q2
Post-acquisitionSep 6 -30, 2016
38
82
20
140

Fiscal year ended
March 2017
Q3
Full year
Pro forma

Fiscal year ending
March 2018
Q2
Q3

229
248
31
508

123
271
28
422

601
974
114
1,689

190
297
33
520

Net sales for the third quarter were $520 million. Technology licensing revenue in the third quarter was up 54% fromthe prior quarter to $190 million. Technology licensing revenue was down 17% year on year. This was primarily caused
by a strong quarter in the same period of the previous fiscal year due to a recovery in technology licensing following
uncertainty in the previous period related to the acquisition of Arm by the Company.
Technology licensing revenue tends to fluctuate quarter-to-quarter; however, Arm expects that it will be higher forthis fiscal year than the previous fiscal year (April 1, 2016 to March 31, 2017 on a pro forma basis including the periods
prior to the acquisition of Arm by the Company), and that it will continue to grow over the long term.
Impact of Security Issues on Financial Results
Arm has been working with Intel Corporation, Advanced Micro Devices, Inc. and operating system vendors to develop mitigations for new methods (“Spectre” and “Meltdown”) identified by third-party security researchers that can
exploit certain high-end chips, some of which are based on a limited set of Arm Cortex-A processors. As a result,software mitigation measures have already been shared with Arm’s partners.
The majority of Arm processors, including Cortex-M processors, which are pervasive in IoT devices, are not impacted
by these methods. The Company does not expect any meaningful impact on revenue or segment income for the fiscal
year ending March 2018.

19

SoftBank Group Corp. Consolidated Financial Report
For the nine-month period ended December 31, 2017

OPERATIONS
Licensing
Licenses signed
October 1 to December 31, 2017

Cumulative number oflicenses signed
December 31, 2017Classic (Arm7, Arm9, Arm11)

0500

Cortex-A

19

322

Cortex-R

5

92

Cortex-M

17

472

Mali

7

166

Number of processor licenses signed

48

1,552

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

During the third quarter, Arm signed 48 processor licenses, reflecting the ongoing demand for Arm’s latest technology.
Of the customers signing licenses, 10 were new customers purchasing their very first Arm processor license. The customers who signed licenses with Arm in the third quarter intend to use Arm technology in a very broad range of end
markets, including 5G cellular modems, automotive camera modules, digital TVs, IoT applications, and smartcards.

Royalty Units
The following analyses are based on the actual shipments of royalty units (chips incorporating Arm technology) by Arm
licensees for the three-month period ended September 30, 2017 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
analyses are based on chips shipped in the prior quarter. In contrast, royalty revenues are accrued in the same quarterthe chips are shipped, based on estimates. This section is prepared solely for reference purposes to facilitate understanding of Arm’s operations and includes information prior to acquisition by the Company on September 5, 2016.
2017

2016
Jul 1 toSep 30

Oct 1 toDec 31

Jan 1 toMar 31

Apr 1 toJun 30Jul 1 toSep 30

4.9 billion

5.1 billion

4.7 billion

5.1 billion

5.7 billion

Growth rate (yoy)Breakdown by processor family

20%

24%

28%

25%

17%

Classic (Arm7, Arm9, Arm11)

23%

19%

17%

18%

17%

Cortex-A

16%

22%

22%

20%

17%

Cortex-R

9%

7%

8%

9%

7%

Cortex-M

52%

52%

53%

53%

59%

Royalty units as reported byArm’s licensees

The semiconductor industry experiences some seasonality due to OEMs buying an increased number of chips particularly from July to December for consumer products sold over the Christmas and Chinese New Year shopping seasons.
Arm is gaining share and thus grows faster than the overall industry; however, being particularly exposed to consumer

20

SoftBank Group Corp. Consolidated Financial Report
For the nine-month period ended December 31, 2017

electronics markets, Arm can also be impacted by the industry’s seasonality. As a result, unit shipments usually growthroughout the year, although unit shipments in the three months ending March 31 can be lower than the prior quarter.
Arm’s licensees reported shipments of 5.7 billion Arm-based chips for the three-month period ended September 30,
2017. This reflects normal seasonality in terms of growth versus the previous quarter, up 12%, and strong growth ofapproximately 17% over the same period of the previous fiscal year reflecting strong demand for Arm-based chips.
More information about Arm, its business and its technology can be found on the investor relations section of Arm’s website
at www.arm.com/company/investors.

21

SoftBank Group Corp. Consolidated Financial Report
For the nine-month period ended December 31, 2017(f) SoftBank Vision Fund and Delta Fund Segment
1.
2.
3.

Segment income of ¥236.4 billion, with a contribution from a rise in NVIDIA’s share price$27.5 billion invested to date in tech companies, including NVIDIA, Arm, and WeWork
Total committed capital of $97.7 billion

OVERVIEWThe Company established the SoftBank Vision Fund and Delta Fund segment as a new reportable segment during thefirst quarter upon the first major closing of SoftBank Vision Fund on May 20, 2017. SoftBank Vision Fund aims toinvest in companies across a wide range of technology sectors.

Outline of Funds in the Segment
As of December 31, 2017
SoftBank Vision Fund

Delta Fund

Major limited partnership

SoftBank Vision Fund L.P.

SB Delta Fund (Jersey) L.P.

Total committed capital*1

Limited partners

General partners$91.7 billion$6.0 billion *1

SoftBank Group Corp.: $28.1 billion *2

SoftBank Group Corp.: $4.4 billion

Third-party investors: $63.6 billion *1

Third-party investors: $1.6 billion *1

SoftBank Group Corp.
Public Investment Fund
Mubadala Investment Company
Apple
Foxconn Technology Group
Qualcomm Incorporated
Sharp Corporation
SVF GP (Jersey) Limited(The Company’s wholly-owned overseas subsidiary)

SoftBank Group Corp.
Mubadala Investment Company

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

Advisory company

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

Management company

The Company’s wholly-owned subsidiary (in the U.K.)

Investment period

Five years from the final closing13 (in principle)

Minimum fund life

12 years from the final closing13 (in principle)

Notes:
1. A portion of the capital committed by Mubadala Investment Company in SoftBank Vision Fund and Delta Fund has been committed in consideration of the total capital committed for both funds; hence, the total committed capital and remaining committed
capital for each fund will change according to the status of contribution by Mubadala Investment Company in each fund.
2. The amount includes approximately $8.2 billion of an in-kind contribution of Arm shares.

13

The Company expects the final closing of SoftBank Vision Fund to complete in the three month period ending June 30, 2018. The final closing ofDelta Fund completed on September 27, 2017.

22

SoftBank Group Corp. Consolidated Financial Report
For the nine-month period ended December 31, 2017

FINANCIAL RESULTS(Millions of Yen)

Nine months ended December 31
2016
2017
Gain and loss on investments at SoftBank Vision Fund and Delta Fund
Unrealized gain and loss on valuation of investments-

251,108

Interest and dividend income from investments

-

3,744

Operating expenses-(18,425)

Segment income-

236,427

Unrealized loss (gain) on valuation of investments-(251,108)

Adjusted EBITDA-(14,681)Note: The segment’s results are calculated as follows:
Segment income = gain and loss on investments at SoftBank Vision Fund and Delta Fund - operating expenses
Adjusted EBITDA = segment income (loss) + depreciation and amortization ± unrealized gain and loss on valuation of investments± other adjustments

Segment income for the period was ¥236,427 million due to the recording of an unrealized gain on valuation of investments of ¥251,108 million, mainly reflecting an increase in fair value of NVIDIA shares as a result of a rise in its market
price.
Adjusted EBITDA was negative ¥14,681 million. Adjusted EBITDA is calculated by deducting unrealized gain andloss on valuation of investments from segment income.

Capital Deployment
As of December 31, 2017
(Billions of U.S. dollars)

Total

The Company

Third-party investors

Committed capital
SoftBank Vision Fund
Delta Fund

91.7 *1
6.0 *1

28.1 *2
4.4

63.6 *1
1.6 *1

Contributions from limited partners
SoftBank Vision Fund
Delta Fund

20.8
5.0

6.3
3.7 *3

14.5
1.3

Remaining committed capital
SoftBank Vision Fund
Delta Fund

70.9
1.0

21.8
0.7

49.1
0.3

Notes:
1. A portion of the capital committed by Mubadala Investment Company in SoftBank Vision Fund and Delta Fund has been committed in consideration of the total capital committed for both funds; hence, the total committed capital and remaining committed
capital for each fund will change according to the status of contribution by Mubadala Investment Company in each fund.
2. The amount includes approximately $8.2 billion of an in-kind contribution of Arm shares.
3. The Company acquired investment securities in Xiaoju Kuaizhi Inc. (DiDi) and then transferred them to Delta Fund. The valueof this transfer was offset against the amount of the Company's capital obligation to Delta Fund.

23

SoftBank Group Corp. Consolidated Financial Report
For the nine-month period ended December 31, 2017

Investment Status
The following are the investments acquired by SoftBank Vision Fund and Delta Fund or agreed to be transferred fromthe Company as of December 31, 2017. These exclude those investments subject to certain regulatory approvals.

Investments acquired
SoftBank Vision Fund

Acquisition cost

Fair value

27.4

29.7

(Billions of U.S. dollars)
Investees
Name (in alphabetical order)
Businesses

Arm Holdings plc
Brain Corporation
Fanatics Holdings, Inc.
Flipkart Limited (Flipkart)
Guardant Health, Inc.
Improbable Worlds Limited
MapBox Inc.
Nauto, Inc.
NVIDIA Corporation

PingAn Health Cloud Co. Limited

Online healthcare portal

Plenty United Inc.

Indoor farm plant

Roivant Sciences Ltd.

Biopharmaceutical drug developer
Business chat tool

WeWork Companies Inc.
(WeWork)
Zhongan Online P&C Insurance
Xiaoju Kuaizhi Inc. (DiDi)
0.1

0.1

Total

27.5

29.8

Geographical information
platform
AI-based safe-driving support
services
GPU developer
Online payment services

Vir Biotechnology, Inc.

Delta Fund

Cancer diagnosis through genomic analysis
VR/AR development tools

One97 Communications Limited(PayTM)
Oravel Stays Private Limited(OYO Rooms)
OSIsoft LLC

Slack Technologies, Inc.

Investments agreed to betransferred from the Company

Semiconductor technology designer
AI-based autonomous driving
system developer
Online retailer of licensed
sports merchandise
e-commerce

Hotel booking site
Industrial IoT solutions

Pharmaceutical drug development for infectious diseases
using AI
Co-working space services
Online insurance
Ridesharing services

Note: SoftBank Vision Fund made some investments through investment holding entities that are subsidiaries, but not whollyowned subsidiaries, of SoftBank Vision Fund. Regardless of the ownership percentage of SoftBank Vision Fund, all investments
made through the investment holding entities are presented as investments made by SoftBank Vision Fund. Of the fair values in theabove table, the values attributable to shareholders other than SoftBank Vision Fund is $1.2 billion.

24

SoftBank Group Corp. Consolidated Financial Report
For the nine-month period ended December 31, 2017(2) Overview of Financial Position
1. Progress on investments- ¥2,658.0 billion in investments from SoftBank Vision Fund and Delta Fund accounted for using FVTPL
2. Financed ¥2,734.0 billion mainly for refinancing of the acquisition funds for Sprint and Arm- Extended the borrowing periods
3. Sprint reversed deferred tax liabilities of ¥829.8 billion following the U.S. tax reform(Millions of yen)March 31, 2017

December 31, 2017

ChangeChange %Total assets

24,634,212

29,412,718

4,778,506

19.4%

Total liabilities

20,164,482

22,843,841

2,679,359

13.3%

Total equity

4,469,730

6,568,877

2,099,147

47.0%

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

¥112.19¥113.00

¥0.81

0.7%

GBP / JPY

¥140.08¥151.95¥11.878.5%(a) Current Assets(Millions of yen)March 31, 2017

December 31, 2017

ChangeCash and cash equivalents

2,183,102

3,340,352

1,157,250

Trade and other receivables

2,121,619

2,331,915

210,296

Other financial assets

794,689

208,117(586,572)

Inventories

341,344362,41221,068Other current assets

283,221306,253

23,032

Total current assets

5,723,975

6,549,049

825,074

Primary components of the change
Components

Primary changes from the previous fiscal year-end

Cash and cash equivalents

See “(3) Overview of Cash Flows” for details.

Other financial assets

Sprint sold part of commercial paper held for short-term investment and cancelled
time deposits.

25

SoftBank Group Corp. Consolidated Financial Report
For the nine-month period ended December 31, 2017(b) Non-current Assets(Millions of yen)March 31, 2017

December 31, 2017

Change3,977,254
4,175,464
2,691,818

3,960,657
4,383,103
2,921,831(16,597)
207,639
230,013

6,946,639

7,168,311

221,672

1,670,799

2,303,274

632,475

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

1,106,409
445,858
404,994
182,820

2,658,043
1,116,746
515,613526,978
230,9442,658,043
10,33769,755
121,984
48,124

Total non-current assets

18,910,237

22,863,669

3,953,432

Property, plant and equipment
Goodwill(incl.) Arm
Intangible assets
Investments accounted for using theequity method
Investments from SoftBank Vision
Fund and Delta Fund accounted forusing FVTPL

Primary components of the change
Components

Primary changes from the previous fiscal year-end

Property, plant and equipment

Telecommunications network equipment at Sprint and SoftBank Corp. decreased
due to depreciation exceeding the amount of newly acquired assets. On the other
hand, leased mobile devices increased at Sprint due to new acquisitions.

Goodwill

Goodwill for Arm increased due to the weaker yen against the pound. On the other
hand, goodwill for Brightstar was impaired.

Intangible assets

The Company newly recognized management contracts with the consolidation of
Fortress. FCC licenses and others increased due to the weaker yen against the U.S.
dollar.
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.

Investments accounted forusing the equity method
Investments from SoftBank
Vision Fund and Delta Fund
accounted for using FVTPL

Delta Fund made investments in DiDi and SoftBank Vision Fund made investments in WeWork and Flipkart, among others. NVIDIA shares were reclassified
from “Investment securities” upon transfer from the Company.

Investment securities

NVIDIA shares were reclassified as “Investments from SoftBank Vision Fundand Delta Fund accounted for using FVTPL” upon transfer to SoftBank Vision
Fund. On the other hand, the Company newly acquired ¥346,403 million in investment securities. This was executed with a plan to transfer around half of themto SoftBank Vision Fund.

Deferred tax assets

Deferred tax assets increased due to recording of a derivative loss in relation to acollar transaction included in a variable prepaid forward contract for Alibaba
shares.

26

SoftBank Group Corp. Consolidated Financial Report
For the nine-month period ended December 31, 2017(c) Current Liabilities(Millions of yen)March 31, 2017

December 31, 2017

Change2,694,093
1,139,734
505,8022,991,052
1,281,438
556,900

296,959
141,704
51,098Current portion of long-term borrowings

433,983

214,962(219,021)

Current portion of corporate bonds

119,947

409,576

289,62980,002536,897

100,000
427,595

19,998(109,302)

307,178

208,306(98,872)

219,365
10,354-

209,666
9,623
308,450(9,699)(731)
308,450

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

1,017,462

210,225
98,225
973,569

210,225
98,225(43,893)

Short-term borrowings
Current portion of long-term borrowings
Lease obligations
OthersTrade and other payables
Other financial liabilities
Income taxes payables
Provisions
Other current liabilities

161,862
387,349
431,52236,7291,607,453
13,701
256,218
56,362
599,096

98,767405,171453,320
16,311
1,744,082
22,752
105,208
50,614
674,935(63,095)

136,629
9,051(151,010)(5,748)75,839Total current liabilities

5,226,923

5,588,643

361,720

Interest-bearing debt
SoftBank Group Corp.
Short-term borrowings

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

17,822
21,798(20,418)

Primary components of the change
Components

Primary changes from the previous fiscal year-end

Interest-bearing debt

SoftBank Group Corp.:
Current portion of long-term borrowings decreased due to borrowing mainly for refinancingof the acquisition funds for Sprint and Arm. Meanwhile, current portion of corporate bonds
increased due to transfers from non-current liabilities.
Sprint:Current portion of long-term borrowings decreased, mainly due to repayment of borrowings
utilizing certain network equipment.
SoftBank Vision Fund and Delta Fund:
Borrowings were made mainly to increase capital efficiency in investments.

Income taxes
payablesDuring the period, the Company paid income taxes recognized and accrued at the previous
fiscal year-end, such as income taxes on gains from the sale of Supercell Oy shares.

27SoftBank Group Corp. Consolidated Financial Report
For the nine-month period ended December 31, 2017(d) Non-current Liabilities(Millions of yen)March 31, 2017

December 31, 2017

Change12,164,277
6,378,194
2,133,705
4,244,488
1
4,024,390

12,813,901
7,050,030
2,478,143
4,571,887
3,708,896

649,624
671,836
344,438
327,399(1)(315,494)

Long-term borrowings
Corporate bonds
OthersSoftBank Vision Fund and Delta Fund

1,044,116
2,954,300
25,974-

1,072,189
2,613,149
23,55864,23428,073(341,151)(2,416)64,234Long-term borrowings
Others

1,761,693

64,234
1,990,741

64,234
229,048

199,804

378,802

178,998

Interest-bearing debt
SoftBank Group Corp.
Long-term borrowings
Corporate bonds
OthersSprintLong-term borrowings
Financial liabilities relating to sale of sharesby variable prepaid forward contract
Lease obligations
OthersThird-party interests in SoftBank Vision Fund andDelta Fund
Derivative financial liabilities
Other financial liabilities
Defined benefit liabilities
Provisions
Deferred tax liabilities
Other non-current liabilities

715,448
787,124
59,317729,234
766,368
116,337

13,786(20,756)
57,020254,146
33,083
108,172
138,730
1,941,380
297,771

1,870,841
721,775
40,043
107,247
134,7031,265,430
301,258

1,870,841
467,629
6,960(925)(4,027)(675,950)
3,487

Total non-current liabilities

14,937,559

17,255,198

2,317,639

Primary components of the change
Components

Primary changes from the previous fiscal year-end

Interest-bearing debt

SoftBank Group Corp.:
Long-term borrowings increased due to borrowing mainly for refinancing of the acquisition funds for Sprint and Arm. Corporate bonds also increased due to the issuance of
foreign currency-denominated straight corporate bonds of ¥676,558 million.
Sprint:Corporate bonds decreased due to early redemptions of certain corporate bonds.
SoftBank Vision Fund and Delta Fund:
Borrowings were made to increase the capital efficiency of investments.

Third-party interests in
SoftBank Vision Fund andDelta Fund

An amount of equity attributable to the third-party investors in SoftBank Vision Fundand Delta Fund was recorded.

28

SoftBank Group Corp. Consolidated Financial Report
For the nine-month period ended December 31, 2017

Derivative financial liabilities

Derivative liabilities increased by ¥518,173 million due to recording derivative loss inrelation to a collar transaction included in a variable prepaid forward contract for
Alibaba shares.

Deferred tax liabilities

Sprint reversed deferred tax liabilities of ¥829,762 million following the enactment of
the U.S. Tax Cuts and Jobs Act in December 2017.
Reduction in U.S. federal corporate tax rate
From January 1, 2018, the U.S. federal corporate tax rate was reduced from 35% to 21%.
This resulted in a partial reversal of deferred tax liabilities of ¥593,137 million related
to FCC licenses and other assets of Sprint that were recognized based on the previous
income tax rate at the time of its acquisition in 2013.
Abolition of time limit on use of future loss carryforwards
Net operating losses generated in tax years beginning after December 31, 2017 may be
carried forward indefinitely. For Sprint, its tax year starts from April, therefore net operating losses generated after April 1, 2018 may be carried forward indefinitely. In
Sprint, for certain deductible temporary differences where deferred tax assets could not
be previously realized, it was likely to be recoverable because the taxable temporary
differences from assets with indefinite lives, such as FCC licenses, may be a source of
future taxable income. As a result of this change, ¥236,625 million of deferred tax assets
was recognized (offset by deferred tax liabilities).

Note: For details about the transaction for sale of Alibaba shares by variable prepaid forward contract, see “(2) Transaction for saleof Alibaba shares by variable prepaid forward contract” under “8. Interest-bearing debt” in “(6) Notes to Condensed Interim Consolidated Financial Statements” in “3. Condensed Interim Consolidated Financial Statements and Primary Notes.”

29

SoftBank Group Corp. Consolidated Financial Report
For the nine-month period ended December 31, 2017(e) Equity(Millions of yen)March 31, 2017

December 31, 2017

Change3,586,352

5,505,689

1,919,337

883,378

1,063,188

179,810

4,469,730

6,568,877

2,099,147

14.6%

18.7%

4.1 ppTotal equity attributable to owners of the parent
Non-controlling interests
Total equity
Ratio of equity attributable to owners of the parent

Equity attributable to owners of the parent(Millions of yen)March 31, 2017

December 31, 2017

ChangeCommon stock

238,772

238,772-

Capital surplus

245,706

265,171

19,465-496,876

496,876

Retained earnings

2,958,355

3,931,828

973,473

Treasury stock(67,727)(66,453)

1,274

Accumulated other comprehensive income

211,246

639,495

428,249

Available-for-sale financial assets

11,98374,93862,955

Cash flow hedges
Exchange differences on translating foreign
operations(44,877)(56,477)(11,600)

244,140

621,034

376,894

Total equity attributable to owners of the parent

3,586,352

5,505,689

1,919,337

Other equity instruments

Primary components of the change
Components

Primary changes from the previous fiscal year-end

Other equity instruments

Newly recorded for USD-denominated Undated Subordinated Notes (the “Hybrid Notes”) issued in July 2017 by SoftBank Group Corp. The Hybrid Notes
are classified as equity instruments in accordance with IFRSs.

Retained earnings

Retained earnings increased as the Company recorded net income attributableto owners of the parent of ¥1,014,944 million.

Accumulated other comprehensive income

The weaker yen against the pound caused an increase in exchange differenceson translating foreign operations related to Arm.

30

SoftBank Group Corp. Consolidated Financial Report
For the nine-month period ended December 31, 2017(3) Overview of Cash Flows
1. Progress on investments- Payments for acquisition of investments by SoftBank Vision Fund and Delta Fund of ¥2,021.3 billion
2. Long-term borrowings resulted in proceeds of ¥3,687.6 billion and repayments of ¥3,378.2 billion- Borrowing mainly for refinancing of the acquisition funds for Sprint and Arm
3. SoftBank Group Corp. issued foreign currency denominated straight corporate bonds of ¥665.8 billion
and hybrid bonds of ¥496.9 billion.
(Millions of yen)

Nine months ended December 31
2016
2017

ChangeCash flows from operating activities

1,127,433

883,775(243,658)

Cash flows from investing activities(3,380,593)(2,728,404)

652,189

Cash flows from financing activities

2,210,330

2,975,356

765,026(a) Cash Flows from Operating Activities
Net cash provided by operating activities decreased by ¥243,658 million year on year. This mainly reflects the Company’s receipt of a refund of ¥293,489 million for withholding income tax related to dividends within the group companies in the same period of the previous fiscal year. An additional factor was a year-on-year increase of ¥117,556
million in income taxes paid due to the payment in the period of income taxes related to the sale of Supercell Oy sharesin the previous fiscal year.
(b) Cash Flows from Investing Activities
Primary components for the period
Components

Primary details

Outlays for purchase of property, plant andequipment and intangible assets¥(791,629) million

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

Payments for acquisition of investments¥(346,403) million

The Company acquired investment securities, around half of which
was conducted with a plan of transferring to SoftBank Vision Fund.

Payments for acquisition of investment by
SoftBank Vision Fund and Delta Fund¥(2,021,298) million

This represents the payments for investments acquired by SoftBank
Vision Fund and Delta Fund or agreed to be transferred from the Company. These mainly included investments in DiDi by Delta Fund, andWeWork and Flipkart by SoftBank Vision Fund.

Decrease from acquisition of control oversubsidiaries¥(261,859) million

This is primarily associated with acquisition of Fortress.

Payments for acquisition of marketablesecurities for short-term trading¥(127,788) million

These proceeds and payments are mainly associated with Sprint’s
short-term trading.

Proceeds from sales/redemption of marketable securities for short-term trading¥384,231 million
Payments into time deposits¥(103,771) million
Proceeds from withdrawal of time deposits¥467,499 million

31

SoftBank Group Corp. Consolidated Financial Report
For the nine-month period ended December 31, 2017(c) Cash Flows from Financing Activities
Primary components of the period
Component
Increases in short-term interest-bearing debt, net¥312,582 million

Primary details

Proceeds from long-term interest-bearing debt
¥4,785,202 million
Proceeds from long-term borrowings¥3,687,621 million

SoftBank Group Corp. conducted borrowings mainly for refinancing of the acquisition funds for Sprint and Arm. In addition, SoftBank Corp. and Sprint conducted borrowings throughsecuritization of receivables.

Proceeds from issuance of bonds¥735,804 million

SoftBank Group Corp. issued foreign currency-denominatedstraight corporate bonds and Yahoo Japan Corporation issued
straight corporate bonds.

Proceeds from sale and leaseback of newly
acquired equipment¥361,777 million

SoftBank Corp. conducted a sale and leaseback for a purchaseof telecommunications network equipment by finance lease.

Repayment of long-term interest-bearing debt¥(4,238,546) million
Repayment of long-term borrowings¥(3,378,241) million

SoftBank Group Corp. conducted borrowings mainly for refinancing the acquisition funds for Sprint and Arm. In addition,
SoftBank Corp. and Sprint repaid borrowings made through securitization of receivables.

Redemption of corporate bonds¥(459,903) million

Sprint redeemed corporate bonds (including early redemptions),
and SoftBank Group Corp. redeemed corporate bonds upon maturity.

Repayment of lease obligations¥(367,238) million

SoftBank Corp. repaid lease obligations for telecommunications network equipment.

Proceeds from contributions from third-party
investors in SoftBank Vision Fund and Delta
Fund¥1,765,404 million

Cash contributions were received from third-party investors
based on capital calls.

Proceeds from other equity instruments¥496,876 million

SoftBank Group Corp. issued the Hybrid Notes. The Hybrid
Notes are classified as equity instruments in accordance with
IFRSs.

(4) Forecasts
The Company does not give forecasts of consolidated results of operations as they are difficult to project due to numerous
uncertainties affecting earnings.
For the forecasts of the Domestic Telecommunications segment, see “Forecast for the Fiscal Year Ending March 2018”
under “(a) Domestic Telecommunications Segment” in “b. Results by Segment” in “(1) Overview of Results of Operations.”

32

SoftBank Group Corp. Consolidated Financial Report
For the nine-month period ended December 31, 2017

2. Notes to Summary Information(1) Significant Changes in Scope of Consolidation for the Nine-month Period Ended December 31, 2017
(Specified subsidiary (one company) excluded from the scope of consolidation)
SoftBank Group International GK and SoftBank Group Japan GK conducted an absorption-type merger, with SoftBank
Group International GK as the surviving company, effective on April 24, 2017. As a result of the merger, SoftBank
Group Japan GK was dissolved and excluded from the scope of consolidation.

(2) Changes in Accounting Policies(Changes in accounting policies required by IFRSs)
The following standard is adopted from the nine-month period ended December 31, 2017.
Standard
IAS 7(amendment)Interpretation
Statement of Cash Flows

Outline of the new/revised standard
Requirement for additional disclosure related to changes inliabilities arising from financing activities.

There is no significant impact on the condensed interim consolidated financial statements due to the adoption of theabove standard.

(3) Changes in Accounting Estimates(Assessment of useful lives of property, plant and equipment and intangible assets)
As a result of reviewing the efficient operation of communication equipment in SoftBank Corp., it became highly
probable that certain communications equipment will be disposed and removed, and therefore, the useful lives wererevised. With this change “Cost of sales” in the condensed interim consolidated statement of income for thenine-month period ended December 31, 2017 increased by ¥14,010 million.
(Assessment of recoverability of deferred tax assets)
Net operating losses generated in tax years after December 31, 2017 may be carried forward indefinitely due to theenactment of the Tax Reform Act in December 2017 in the U.S. As a result of the reassessment of the recoverability ofdeferred tax assets in Sprint, certain deductible temporary differences from assets with indefinite lives, such as FCC
licenses, where deferred tax assets were not recognized previously, are likely to be recoverable and deferred tax assets
were recognized (offset by deferred tax liabilities). The details are described in “Note 7. Income taxes” under “3.
Condensed Interim Consolidated Financial Statements and Primary Notes (6) Notes to Condensed Interim
Consolidated Financial Statements.”(Impairment loss on goodwill and non-current assets)
As a result of revising the business plan of Brightstar in the Distribution segment, the recoverable amount of goodwill
and non-current assets was less than its carrying amount and, therefore, the impairment loss was recognized for thethree-month period ended December 31 2017. The details are described in “Note 13. Other operating loss Note 5”
under “3. Condensed Interim Consolidated Financial Statements and Primary Notes (6) Notes to Condensed Interim
Consolidated Financial Statements.”(Write-down of inventories)
As a result of revising the business plan of Sports Live Entertainment Corporation which operates a sports content
distribution business, the net realizable value of inventories was less than its carrying amount and, therefore, thewrite-down was recognized for the three-month period ended December 31 2017. The details are described in “Note 13.
Other operating loss Note 7” under “3. Condensed Interim Consolidated Financial Statements and Primary Notes (6)Notes to Condensed Interim Consolidated Financial Statements.”

33

SoftBank Group Corp. Consolidated Financial Report
For the nine-month period ended December 31, 2017

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

Definition

SoftBank Group Corp.

SoftBank Group Corp. (stand-alone basis)

The Company

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

Brightstar

Brightstar Global Group Inc.

Arm

Arm Holdings plc

SoftBank Vision Fund

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

Delta FundSB Delta Fund (Jersey) L.P.

Fortress

Fortress Investment Group LLC

Alibaba

Alibaba Group Holding Limited

34

SoftBank Group Corp. Consolidated Financial Report
For the nine-month period ended December 31, 2017

“SVF” which was presented in the previous quarter has been changed to “SoftBank Vision Fund and Delta Fund” fromthree-month period ended December 31, 2017. Accordingly, the name of each account, segment and other item on thesecondensed interim consolidated financial statements is as the follows;
Condensed Interim Consolidated Statement of Financial Position
Previous

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

Investments from SVF accounted for using FVTPL
Third-party interests in SVF

Condensed Interim Consolidated Statement of Income
Previous

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

Operating income (excluding income from SVF)
Operating income from SVF
Change in third-party interests in SVF

Condensed Interim Consolidated Statement of Cash Flows
Previous

Current
Gain on investments at SoftBank Vision Fund and Delta
Fund
Change in third-party interests in SoftBank Vision Fundand Delta FundPayments for acquisition of investments by
SoftBank Vision Fund and Delta FundContributions into SoftBank Vision Fundand Delta Fund from third-party investors

Gain on investments at SVF
Change in third-party interests in SVF
Payments for acquisition of investments by SVF
Contributions into SVF from third-party investors

Segment information
Previous

Current

The SVF segment

The SoftBank Vision Fund and Delta Fund segment

Unrealized gain and loss on valuation of investments in Unrealized gain and loss on valuation of investments
SVF
in SoftBank Vision Fund and Delta Fund

35

SoftBank Group Corp. Consolidated Financial Report
For the nine-month period ended December 31, 2017

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

As ofMarch 31, 2017
AssetsCurrent assets
Cash and cash equivalents
Trade and other receivables
Other financial assets
Inventories
Other current assets
Total current assets

Non-current assets
Property, plant and equipment
Goodwill
Intangible assets
Investments accounted for using the equity method
Investments from SoftBank Vision Fund and Delta Fund
accounted for using FVTPL
Investment securities
Other financial assets
Deferred tax assets
Other non-current assets
Total non-current assets
Total assets

36

As of
December 31, 2017

2,183,102
2,121,619
794,689
341,344283,2215,723,975

3,340,352
2,331,915
208,117362,412306,2536,549,049

3,977,254
4,175,464
6,946,639
1,670,799

3,960,657
4,383,103
7,168,311
2,303,274

1,106,409
445,858
404,994
182,820
18,910,237
24,634,212

2,658,043
1,116,746
515,613526,978
230,944
22,863,669
29,412,718

SoftBank Group Corp. Consolidated Financial Report
For the nine-month period ended December 31, 2017

(Millions of yen)

As ofMarch 31, 2017
Liabilities and equity
Current liabilities
Interest-bearing debt
Trade and other payables
Other financial liabilities
Income taxes payables
Provisions
Other current liabilities
Total current liabilities

As ofDecember 31, 2017

2,694,093
1,607,453
13,701
256,218
56,362
599,096
5,226,923

2,991,052
1,744,082
22,752
105,208
50,614
674,935
5,588,643

12,164,277

12,813,901

254,146
33,083
108,172
138,730
1,941,380
297,771
14,937,559

1,870,841
721,775
40,043
107,247
134,7031,265,430
301,258
17,255,198

Total liabilities

20,164,482

22,843,841

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

238,772
245,706
2,958,355(67,727)
211,246
3,586,352
883,378
4,469,730
24,634,212

238,772
265,171496,876
3,931,828(66,453)
639,495
5,505,689
1,063,188
6,568,877
29,412,718

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

37SoftBank Group Corp. Consolidated Financial Report
For the nine-month period ended December 31, 2017(2) Condensed Interim Consolidated Statement of Income and Condensed Interim Consolidated Statement ofComprehensive Income
For the nine-month period ended December 31
Condensed Interim Consolidated Statement of Income(Millions of yen)

Continuing operations
Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Gain from remeasurement relating to businesscombination
Other operating loss
Operating income (excluding income from SoftBank
Vision Fund and Delta Fund)
Operating income from SoftBank Vision Fund and Delta
Fund
Operating income
Finance cost
Income on equity method investments
Gain on sales of shares of associates
Foreign exchange gain
Derivative loss
Change in third-party interests in SoftBank Vision Fundand Delta Fund
Other non-operating income (loss)
Income before income tax
Income taxes
Net income from continuing operations
Discontinued operations
Net income from discontinued operations
Net income
Net income attributable to
Owners of the parent
Non-controlling interests

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

Nine-month period ended
December 31, 2016*

Nine-month period ended
December 31, 2017

6,581,466(3,990,070)
2,591,396

6,811,274(4,044,184)
2,767,090(1,612,620)(1,827,083)

18,187-(67,635)(27,605)929,328

912,402929,328(343,363)
205,988
238,101
34,222(95,875)

236,427
1,148,829(383,337)
319,591
1,804
20,100(485,198)(13,476)
954,925(615,954)
338,971(108,163)
50,178563,804
638,941
1,202,745

553,305
892,276

1,202,745

845,773
46,503892,276

1,014,944
187,801
1,202,745

268.17490.73758.90918.29918.29261.16490.42751.58894.15894.15Note:* Retrospective adjustments are made due to the completion of allocation of the consideration related to the consolidation of Arm
in September 2016 during the three-month period ended June 30, 2017.

38

SoftBank Group Corp. Consolidated Financial Report
For the nine-month period ended December 31, 2017

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

Nine-month period ended
December 31, 2016*

Nine-month period ended
December 31, 2017892,276

1,202,745

-

8,552

-

8,552

29,043(4,369)48,156(10,804)

49,953382,058(27,626)

10,57147,001

429,981

47,001
939,277

438,533
1,641,278

883,480
55,797939,277

1,450,381
190,897
1,641,278

Net income
Other comprehensive income, net of tax
Items that will not be reclassified to profit or loss
Remeasurements of defined benefit plan
Total items that will not be reclassified to profit
or loss
Items that may be reclassified subsequently to
profit or loss
Available-for-sale financial assets
Cash flow hedges
Exchange differences on translating foreign
operations
Share of other comprehensive income ofassociates
Total items that may be reclassified subsequently to
profit or loss
Total other comprehensive income, net of tax
Total comprehensive income
Total comprehensive income attributable to
Owners of the parent
Non-controlling interests

Note:* Retrospective adjustments are made due to the completion of allocation of the consideration related to the consolidation of Arm
in September 2016 during the three-month period ended June 30, 2017.

39

SoftBank Group Corp. Consolidated Financial Report
For the nine-month period ended December 31, 2017

For the three-month period ended December 31
Condensed Interim Consolidated Statement of Income(Millions of yen)Three-month period ended Three-month period ended
December 31, 2016*
December 31, 2017
Continuing operations
Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Other operating loss
Operating income (excluding income from SoftBank
Vision Fund and Delta Fund )Operating income from SoftBank Vision Fund and Delta
Fund
Operating income
Finance cost
Income on equity method investments
Foreign exchange gain (loss)
Derivative gain
Change in third-party interests in SoftBank Vision Fundand Delta Fund
Other non-operating income
Income before income tax
Income taxes
Net income from continuing operations
Discontinued operations
Net income from discontinued operations
Net income
Net income attributable to
Owners of the parent
Non-controlling interests

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

2,309,632(1,421,900)
887,732

2,400,139(1,490,002)
910,137(588,534)(17,233)(639,305)(47,031)281,965

223,801

281,965(121,341)
100,814(48,849)
74,18350,189273,990(139,879)
211,301
9,158
19,4839,109
295,881(198,540)
97,341(31,006)
1,736
344,783
714,220
1,059,003(5,280)92,061

1,059,003

80,257
11,804
92,061

912,322
146,6811,059,003

78.55(4.85)
73.70

829.96829.9675.00(4.85)
70.15

809.15809.15Note:* Retrospective adjustments are made due to the completion of allocation of the consideration related to the consolidation of Arm
in September 2016 during the three-month period ended June 30, 2017.

40

SoftBank Group Corp. Consolidated Financial Report
For the nine-month period ended December 31, 2017

Condensed Interim Consolidated Statement of Comprehensive Income(Millions of yen)Three-month period ended
December 31, 2016*

Three-month period ended
December 31, 2017

92,061

1,059,003

-

8,552

-

8,552

22,504318

11,101
1,119

762,632

45,882(8,201)

1,030

777,253

59,132

777,253869,314

67,684
1,126,687

816,138
53,176869,314

977,370
149,317
1,126,687

Net income
Other comprehensive income, net of tax
Items that will not be reclassified to profit or loss
Remeasurements of defined benefit plan
Total items that will not be reclassified to profit
or loss
Items that may be reclassified subsequently to
profit or loss
Available-for-sale financial assets
Cash flow hedges
Exchange differences on translating foreign
operations
Share of other comprehensive income ofassociates
Total items that may be reclassified subsequently to
profit or loss
Total other comprehensive income, net of tax
Total comprehensive income
Total comprehensive income attributable to
Owners of the parent
Non-controlling interests

Note:* Retrospective adjustments are made due to the completion of allocation of the consideration related to the consolidation of Arm
in September 2016 during the three-month period ended June 30, 2017.

41

SoftBank Group Corp. Consolidated Financial Report
For the nine-month period ended December 31, 2017(3) Condensed Interim Consolidated Statement of Changes in Equity
For the nine-month period ended December 31, 2016*(Millions of yen)
Equity attributable to owners of the parent
Noncontrollinginterests
891,658

Total equity
3,505,271

845,773

46,503892,276

37,70737,707

9,294

47,001-37,707883,480

55,797939,277(48,042)--(48,042)(43,416)(91,458)-(844)(349,302)-(350,146)-(350,146)--(595,195)

595,195

-

-

-

-

-

-

-

-

-

-

2,218

2,218

-

-

-

-

-

-

(25,565)(25,565)

-

(170)

-

-

-

(170)

3,019

2,849

-

(475)

-

-

-

(475)

-

(475)

-

(15,595)---(15,595)-(15,595)

-

1,728

-

-

-

1,728

2,284

4,012

-

-

-

-

-

-

(906)

(906)

-

(14,512)(644,081)

245,893-(412,700)(62,366)(475,066)

238,772

246,7222,368,315(68,859)

299,4433,084,393

885,089

3,969,482

Accumulated

As of April 1, 2016
Comprehensive income
Net income
Other comprehensive
incomeTotal comprehensive
incomeTransactions with owners
and other transactions
Cash dividends
Purchase and disposal oftreasury stock
Retirement of treasury
stock
Changes from businesscombination
Changes from loss ofcontrolChanges in interests in
subsidiaries
Changes in associates’interests in theirsubsidiaries
Changes in interests inassociates’ capitalsurplus
Share-based paymenttransactions
Other
Total transactions withowners and othertransactions
As of December 31, 2016

other
Treasury comprehensive
stock
Total
income(314,752)
261,736
2,613,613

Commonstock
238,772

Capitalsurplus261,234

Retainedearnings
2,166,623--

845,773

-

-

-

-

-

-

-

-

845,773

-

-

-

Note:
* Retrospective adjustments are made due to the completion of allocation of the consideration related to the consolidation of Arm
in September 2016 during the three-month period ended June 30, 2017.

42

SoftBank Group Corp. Consolidated Financial Report
For the nine-month period ended December 31, 2017

For the nine-month period ended December 31, 2017
(Millions of yen)

Equity attributable to owners of the parent
Accumulated

As of April 1, 2017
Comprehensive income
Net income
Other comprehensive
incomeTotal comprehensive income
Transactions with owners andother transactions
Issuance of other equity
instruments
Cash dividends
Transfer of accumulated othercomprehensive income toretained earnings
Purchase and disposal of treasury
stock
Changes from businesscombination
Changes in interestsin subsidiaries
Changes in associates’interests in theirsubsidiaries
Changes in interests in associates’
capital surplus
Share-based payment transactions
Other
Total transactions with owners
and other transactions
As of December 31, 2017

As of April 1, 2017
Comprehensive income
Net income
Other comprehensive
incomeTotal comprehensive income
Transactions with owners andother transactions
Issuance of other equity
instruments
Cash dividends
Transfer of accumulated othercomprehensive income toretained earnings
Purchase and disposal of treasury
stock
Changes from businesscombination
Changes in interestsin subsidiaries
Changes in associates’interests in theirsubsidiaries
Changes in interests in associates’
capital surplus
Share-based payment transactions
Other
Total transactions with owners
and other transactions
As of December 31, 2017

Commonstock
238,772

Capitalsurplus245,706-

other
Treasurycomprehensivestock
income(67,727)
211,246-

Retainedearnings
2,958,355--

1,014,944--

1,014,944

-

-

-

-

-

435,437

435,437---

1,014,944-

435,437

1,450,381--

496,876---

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

-

-

-

7,188

-

(7,188)

-

-

-

-

(726)

1,274

-

548

-

-

-

-

-

-

-

-

(20,423)

-

-

-

-

(20,423)-(3,174)

-

-

-

-

(3,174)-38,397----38,397

-

4,665
-

-

-

-

-

4,665
-

-

19,465496,876(41,471)

1,274(7,188)468,956

238,772

265,171496,876

3,931,828(66,453)

639,495

5,505,689

Noncontrollinginterests
883,378

Total equity
4,469,730

187,801

1,202,745

3,096

438,533

190,897

1,641,278-

496,876(30,781)(78,714)

-

-

-

548

14,972

14,972(2,091)(22,514)-(3,174)-38,397

7,522
(709)

12,187(709)(11,087)

457,869

1,063,188

6,568,877

Other equity
instruments

43

Total
3,586,352

SoftBank Group Corp. Consolidated Financial Report
For the nine-month period ended December 31, 2017(4) Condensed Interim Consolidated Statement of Cash Flows(Millions of yen)

Cash flows from operating activities
Net income
Depreciation and amortization
Gain from remeasurement relating to business combination
Gain on investments at SoftBank Vision Fund and Delta
Fund
Finance cost
Income on equity method investments
Gain on sales of shares of associates
Derivative loss
Change in third-party interests in SoftBank Vision Fundand Delta Fund
Foreign exchange (gain) and other non-operating(income) and loss
Gain on sales of discontinued operations
Income taxes
Increase in trade and other receivables
Increase in inventories
Increase in trade and other payables
Other
SubtotalInterest and dividends received
Interest paid
Income taxes paid
Income taxes refunded
Net cash provided by operating activities
Cash flows from investing activities
Purchase of property, plant and equipment, and intangible
assetsPayments for acquisition of investments
Payments for acquisition of investments by SoftBank
Vision Fund and Delta Fund
Proceeds from sales/redemption of investments
Decrease from acquisition of control over subsidiaries
Increase from loss of control over subsidiaries
Payments for acquisition of marketable securities for
short-term trading
Proceeds from sales/redemption of marketable securities
for short-term trading
Payments into time deposits
Proceeds from withdrawal of time deposits
Other
Net cash used in investing activities

44

Nine-month period ended
December 31, 2016*

Nine-month period ended
December 31, 2017892,276
1,056,559(18,187)

1,202,745
1,152,375--(254,852)

343,363(205,988)(238,101)

383,337(319,591)(1,804)

95,875

485,198-

108,163(22,837)(70,278)(636,216)
733,526(638,941)(223,664)(292,832)
40,194
3,044
1,527,012
16,738(378,065)(354,655)
316,403
1,127,433(161,386)(391,455)
165,207(18,602)1,640,116
21,674(397,073)(472,211)
91,269883,775(671,797)(791,629)(440,211)(346,403)-(2,021,298)

464,037(3,253,000)
725,30224,657(261,859)-(250,902)(127,788)

119,063384,231(290,570)
172,797
44,688(3,380,593)(103,771)
467,499
47,957(2,728,404)

SoftBank Group Corp. Consolidated Financial Report
For the nine-month period ended December 31, 2017

(Millions of yen)

Cash flows from financing activities
Increase in short-term interest-bearing debt, net
Proceeds from long-term interest-bearing debt
Repayment of long-term interest-bearing debt
Contributions into SoftBank Vision Fund and Delta Fundfrom third-party investors
Distribution/redemption from SoftBank Vision Fund andDelta Fund to third-party investors
Proceeds from issuance of other equity instruments
Purchase of treasury stock
Cash dividends paid
Cash dividends paid to non-controlling interests
Other
Net cash provided by financing activities
Effect of exchange rate changes on cash and cash equivalents(Decrease) 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

Nine-month period ended
December 31, 2016*

Nine-month period ended
December 31, 2017

355,024
3,585,651(1,245,267)

312,582
4,785,202(4,238,546)-

1,765,404(350,843)(46,098)(41,934)(46,203)2,210,330(28,032)(20,918)
496,876(36)(47,785)(29,577)(47,846)
2,975,356
26,523(70,862)

1,157,250

2,569,607
2,498,745

2,183,102
3,340,352

Note:* Retrospective adjustments are made due to the completion of allocation of the consideration related to the consolidation of Arm
in September 2016 during the three-month period ended June 30, 2017.

45

SoftBank Group Corp. Consolidated Financial Report
For the nine-month period ended December 31, 2017(5) Significant Doubt about Going Concern Assumption
There are no applicable items.
(6) Notes to Condensed Interim Consolidated Financial Statements
1. Significant accounting policies
The SoftBank Vision Fund completed the initial closing in May 2017. Accordingly, the Company adopted
accounting policies for SoftBank Vision Fund and Delta Fund as follows.
(1) Scope of consolidation for SoftBank Vision Fund and Delta Fund business
SoftBank Vision Fund and Delta Fund is managed by SB Investment Advisers (UK) Limited (“SBIA”) which isregulated by the UK Financial Conduct Authority. Investment decisions for the various entities comprising
SoftBank Vision Fund and Delta Fund are made by the Investment Committee established as a committee of SBIA.
SBIA is a wholly-owned subsidiary of the Company, and as such the Company has control over limited
partnerships and investment holding entities comprising SoftBank Vision Fund and Delta Fund as stipulated in
IFRS 10 “Consolidated Financial Statements.” Accordingly, all entities that comprise SoftBank Vision Fund andDelta Fund are consolidated by the Company. Intercompany transactions such as management fees andperformance fees to SBIA paid or to be paid from SoftBank Vision Fund and Delta Fund, are eliminated inconsolidation.
(2) Portfolio company investments made by SoftBank Vision Fund and Delta Fund
a. Investments in subsidiaries
The portfolio companies that the Company is deemed to control under IFRS 10 “Consolidated Financial
Statements,” are treated as subsidiaries of the Company. Accordingly, their results of operations, assets andliabilities are included in the Company’s consolidated financial statements.
b. Investments other than subsidiaries
Investments other than subsidiaries made by SoftBank Vision Fund and Delta Fund including investments inassociates of the Company are measured at fair value at the end of each quarter with the change during thereporting period recognized in profit or loss. Such investments that SoftBank Vision Fund and Delta Fundmade are presented as “Investments from SoftBank Vision Fund and Delta Fund accounted for using FVTPL”
in the condensed interim consolidated statement of financial position. The payments for these investments
are presented as “Payments for acquisition of investments by SoftBank Vision Fund and Delta Fund” undercash flows from investing activities in the condensed interim consolidated statement of cash flows.
c. Investments made by the Company to transfer to SoftBank Vision Fund and Delta Fund
Investments made by SoftBank Group Corp. or its subsidiaries with the purpose of transferring to SoftBank
Vision Fund and Delta Fund are presented as “Investment securities” in the condensed interim consolidated
statement of financial position. Payments for the investments are presented as “Payments for acquisition of
investments” under cash flows from investing activities in the condensed interim consolidated statement ofcash flows. Once the investments are agreed to be transferred from the Company to SoftBank Vision Fund orDelta Fund, and regulatory approvals to make the investments by SoftBank Vision Fund or Delta Fund are
obtained(such investments, “Agreed Transferable Investments”), the Company retroactively changes thepresentation of these investments and the payments for the investments to the presentation as described in theabove “b. Investments except for subsidiaries” from the date when the Company initially made theseinvestments.
In cases where the Company’s subsidiaries are investees and the Company is transferring those investments
to SoftBank Vision Fund or Delta Fund, the investments are accounted for in accordance with the above “a.
Investments in subsidiaries”, regardless of whether the investments are Agreed Transferable Investments.

46

SoftBank Group Corp. Consolidated Financial Report
For the nine-month period ended December 31, 2017(3) Results from SoftBank Vision Fund and Delta Fund
Income and loss arising from SoftBank Vision Fund and Delta Fund business are separated from operating income
and loss arising from other segments, recognized as a component of operating income, and presented as “Operating
income from SoftBank Vision Fund and Delta Fund” in the condensed interim consolidated statement of income.
Gain and loss on investments at SoftBank Vision Fund and Delta Fund (realized gain and loss on sales ofinvestments, unrealized gain and loss on valuation of investments, interest and dividend income from investments,
except for gain and loss on investments in subsidiaries) and operating expenses such as incorporation expenses ofentities that comprise SoftBank Vision Fund and Delta Fund, investment research expenses arising from SBIA
and other advisory companies, and administrative expenses arising from each entity, are included in “Operating
income and loss from SoftBank Vision Fund and Delta Fund.” The details are described in “Note 12. Operating
income from SoftBank Vision Fund and Delta Fund.”Gain and loss arising from investments, which are made by SoftBank Vision Fund and Delta Fund although are
not Agreed Transferable Investments, are presented as “Other non-operating income (loss) (or Gain (loss) fromfinancial instruments at FVTPL)” in the condensed interim consolidated statement of income. Once theinvestments become Agreed Transferable Investments, the Company retroactively changes the presentation ofgain and loss arising from the investments as “Operating income from SoftBank Vision Fund and Delta Fund”
from the date when the Company initially made these investments.
(4) Contribution from Limited Partners to SoftBank Vision Fund and Delta Funda. Contribution from the Company to SoftBank Vision Fund and Delta FundContribution from the Company to SoftBank Vision Fund and Delta Fund as a limited partner is eliminated atconsolidation.
(Execution of contribution using shares of Arm)The Company will contribute approximately 24.99% of the total number of issued shares of Arm (the “Arm
Shares”), all of which are owned by the Company, to SoftBank Vision Fund through an in-kind contribution(the “In-kind Contribution”) in satisfaction of approximately $8.2 billion of the Company’s commitment to
SoftBank Vision Fund.
The In-kind Contribution will be effectuated through the transfer of Arm Shares to SoftBank Vision Fundsubject to the satisfaction of preconditions related to regulatory approvals prescribed in SoftBank Vision
Fund’s governing documents. Such conditions include clearance from the Committee on Foreign Investmentsin the United States in respect of the transfer of the Arm Shares. Pending the delivery of the Arm Shares to
SoftBank Vision Fund following the satisfaction of such conditions, a portion of the Arm Shares has been
pledged and, pursuant to future capital calls, will be pledged in favor of SoftBank Vision Fund.
After the completion of the In-kind Contribution of Arm Shares, Arm will continue to be a consolidated
subsidiary of the Company.
b. Contribution from limited partners other than the Company to SoftBank Vision Fund and Delta Fund(“Third-Party Investors”)
The interests attributable to Third-Party Investors are classified as financial liabilities, “Third-party interests in
SoftBank Vision Fund and Delta Fund” in the condensed interim consolidated statement of financial position.
Changes in the interests of Third-Party Investors are recognized through net profit or loss and presented as“Changes in third-party interests in SoftBank Vision Fund and Delta Fund” in non-operating income and loss inthe condensed interim consolidated statement of income.
Contributions from Third-Party Investors to SoftBank Vision Fund and Delta Fund are included in“Contributions into SoftBank Vision Fund and Delta Fund from third-party investors” under cash flows fromfinancing activities in the condensed interim consolidated statement of cash flows. The distribution to
Third-Party investors and the redemption of investment from Third-Party investors are included in“Distribution/redemption from SoftBank Vision Fund and Delta Fund to third-party investors” under cash
flows from financing activities in the condensed interim consolidated statement of cash flows.

47

SoftBank Group Corp. Consolidated Financial Report
For the nine-month period ended December 31, 2017

2. Segment information(1) Description of reportable segments
The Company’s reportable segments are components of business activities for which discrete financial
information is available, and such information is regularly reviewed by the Company’s Board of Directors inorder to make decisions about the allocation of resources and assess its performance.
The Company has six reportable segments: the Domestic telecommunications segment, the Sprint segment, theYahoo Japan segment, the Distribution segment, the Arm segment, and the SoftBank Vision Fund and Delta Fund
segment.
The Domestic Telecommunications segment provides, mainly through SoftBank Corp., mobile communications
services, sale of mobile devices, telecommunication services such as fixed-line telephone and data
communications services for corporate customers, and broadband services for retail customers in Japan.
The Sprint segment provides, through Sprint, mobile communications services, sale and lease of mobile devices,sale of mobile device accessories, and fixed-line telecommunications services in the U.S.
The Yahoo Japan segment provides, mainly through Yahoo Japan Corporation, an Internet-based advertisingbusiness, an e-commerce business, and membership services.
The Distribution segment provides, through Brightstar, distribution of mobile devices overseas, and through
SoftBank Commerce & Service Corp., sale of mobile device accessories, PC software, and peripherals in Japan.
The Arm segment provides, through Arm, designs of microprocessor intellectual property and related technology,
and the sale of software tools.
The SoftBank Vision Fund and Delta Fund segment conducts investment activities in a wide range of technology
sectors. The SoftBank Vision Fund and Delta Fund segment was newly established from the three-month period
ended June 30, 2017, due to the completion of the Initial Closing for SoftBank Vision Fund in May 2017. The
segment income of the SoftBank Vision Fund and Delta Fund segment consists of gain and loss arising frominvestments held by SoftBank Vision Fund and Delta Fund or the Agreed Transferable Investments (gain and loss
on investments at SoftBank Vision Fund and Delta Fund), and operating expenses occurred in SoftBank Vision
Fund and Delta Fund, SBIA and advisers.
Information on business segments which are not included in the reportable segments is classified in “Other.”“Other” includes mainly Fortress and the Fukuoka SoftBank HAWKS-related business.
“Reconciliations” include an elimination of intersegment transactions and the corporate general expenses
unallocated to each reportable segment. Expenses arising mainly from SoftBank Group Corp. and SB Group US,
Inc., which manages and supervises investment activities in the Internet, communication, and media fields
overseas, are included in corporate general expenses.
(2) Net sales and income of reportable segments
Income of reportable segments is defined as “Operating income.” Intersegment transaction prices are determined
under the same general business conditions as applied for external customers.
The Company also discloses EBITDA (i.e., segment income and loss after addition of depreciation andamortization) and Adjusted EBITDA (i.e., EBITDA after addition or deduction of unrealized gain and loss on
valuation of investments in SoftBank Vision Fund and Delta Fund and other adjustments (gains are deducted))by each reportable segment. “Other adjustments” are special items, such as acquisition-related costs andimpairment loss mainly included in other operating income and loss.
Income and loss, which are not attributable to operating income and loss, such as financial cost and income andloss on equity method investments, are not managed by each reportable segment and therefore these income andlosses are excluded from the segment performance. Discontinued operations are not included.

48

SoftBank Group Corp. Consolidated Financial Report
For the nine-month period ended December 31, 2017

For the nine-month period ended December 31, 2016
(Millions of yen)

Reportable segments
SoftBank
Vision Fundand Delta Fund

Domestic
Telecommunications

Sprint

Yahoo
Japan

Customers

2,375,500

2,548,215

622,039

890,168

68,854-

6,504,776

Intersegment

25,170103,794

8,761

49,4181-

187,144

2,400,670

2,652,009

630,800

939,586

68,855-

6,691,920

651,484

145,186

150,544

19,1089,922-

976,244

Distribution

Arm

Total

Net sales

Total
Segment income

Reconciliation from segment income to adjusted EBITDA
Segment income
Depreciation andamortization

651,484

145,186

150,544

19,1089,922-

976,244343,205

645,486

28,631

5,337

18,199-1,040,858

EBITDA
Gain from remeasurement
relating to businesscombination

994,689

790,672

179,175

24,44528,121-

2,017,102

-

-

(19)

-

(18,168)-(18,187)

Other adjustments-(2,949)--25,780-22,831

Adjusted EBITDA

994,689

787,723

179,156

24,44535,733-2,021,746(Millions of yen)

Reconciliations

Other

Consolidated

Net sales
Customers

76,690-Intersegment

16,958(204,102)

-

Total

93,648(204,102)

6,581,466

Segment income(8,036)(38,880)929,328

6,581,466

Reconciliation from segment income to adjusted EBITDA
Segment income
Depreciation andamortization
EBITDA
Gain from remeasurement
relating to businesscombination(8,036)(38,880)929,328

7,452

1,189

1,049,499(584)(37,691)

1,978,827(18,187)--

Other adjustments

-

8,283

31,114

Adjusted EBITDA(584)(29,408)

1,991,754

49

SoftBank Group Corp. Consolidated Financial Report
For the nine-month period ended December 31, 2017

For the nine-month period ended December 31, 2017
(Millions of yen)

Reportable segments
Domestic
Telecommunications

Sprint

Yahoo
Japan

2,378,916

2,573,024

639,127

27,954

149,129

12,4172,406,870

2,722,153

651,544612,698

291,841

142,656

Distribution

SoftBank
Vision Fundand Delta Fund

Arm

Total

Net sales
Customers
Intersegment
Total
Segment income

982,331

152,420-

6,725,818

42,4802-

231,982

1,024,811

152,422-

6,957,800(40,673)(21,865)

236,427

1,221,084

Reconciliation from segment income to adjusted EBITDA
Segment income
Depreciation andamortization

612,698

291,841

142,656(40,673)(21,865)

236,427

1,221,084

351,322708,307

31,9595,175

46,158-

1,142,921

EBITDA
Unrealized gain and loss
on valuation of
investments in SoftBank
Vision Fund and Delta
Fund964,020

1,000,148

174,615(35,498)

24,293

236,427

2,364,005

-

-

-

-

-

(251,108)(251,108)

Other adjustments-(61,323)(7,896)50,497--(18,722)

Adjusted EBITDA

964,020

938,825

166,719

14,99924,293(14,681)2,094,175(Millions of yen)

Reconciliations

Other

Consolidated

Net sales
Customers

85,456-

Intersegment

18,947(250,929)

-

Total

104,403(250,929)

6,811,274

Segment income(35,047)(37,208)

1,148,829

6,811,274

Reconciliation from segment income to adjusted EBITDA
Segment income
Depreciation andamortization(35,047)(37,208)

1,148,829

EBITDA
Unrealized gain and loss
on valuation of
investments in SoftBank
Vision Fund and Delta
Fund

8,252

1,202

1,152,375(26,795)(36,006)

2,301,204

Other adjustments--(251,108)

23,496

1,427

Adjusted EBITDA(3,299)6,201(34,579)

2,056,297

50

SoftBank Group Corp. Consolidated Financial Report
For the nine-month period ended December 31, 2017

For the three-month period ended December 31, 2016
(Millions of yen)

Reportable segments
Domestic
Telecommunications

Sprint

Yahoo
Japan

Distribution

SoftBank
Vision Fundand Delta Fund

Arm

Total

Net sales
Customers

835,111882,906

218,386

294,938

54,498-2,285,839

Intersegment

10,993

46,566

2,917

18,292

1-

78,769

Total

846,104

929,472

221,303313,230

54,499-2,364,608

Segment income

185,551

40,621

51,173

4,803

15,045-297,193

Reconciliation from segment income to adjusted EBITDA
Segment income
Depreciation andamortization

185,551

40,621

51,173

4,803

15,045-297,193

117,800

225,435

9,477

1,780

13,723-368,215

EBITDA

665,408

303,351

266,056

60,650

6,583

-

4,743

-

-

28,768314-

Other adjustments

-

5,057

Adjusted EBITDA

303,351

270,799

60,650

6,583

29,082-

670,465(Millions of yen)

Reconciliations

Other

Consolidated

Net sales
Customers

23,793-2,309,632

Intersegment

5,722(84,491)-

Total

29,515(84,491)2,309,632

Segment income(5,247)(9,981)

281,965

Reconciliation from segment income to adjusted EBITDA
Segment income
Depreciation andamortization(5,247)(9,981)

281,965

2,674

386

371,275(2,573)(9,595)

EBITDA

653,240

Other adjustments

-

176

5,233

Adjusted EBITDA(2,573)(9,419)658,47351

SoftBank Group Corp. Consolidated Financial Report
For the nine-month period ended December 31, 2017

For the three-month period ended December 31, 2017
(Millions of yen)

Reportable segments
Domestic
Telecommunications

SprintYahoo
Japan
221,480

Distribution

SoftBank
Vision Fundand Delta Fund

Arm

Total

Net sales
Customers

865,620

860,741

Intersegment

12,29068,085

4,625

Total

877,910928,826

226,105

Segment income

178,730

89,66549,966

365,856

58,745-2,372,442

14,103

1-

99,104379,959

58,746-2,471,546(48,036)(7,071)50,189313,443

Reconciliation from segment income to adjusted EBITDA
Segment income
Depreciation andamortization

178,730

89,66549,966(48,036)(7,071)50,189313,443

125,629

244,316

11,146

1,684

15,873-398,648

EBITDA
Unrealized gain and loss
on valuation of
investments in SoftBank
Vision Fund and Delta
Fund

304,359

333,981

61,112(46,352)

8,802

50,189712,091

-

-

-

-

-

(56,772)(56,772)

Other adjustments-(24,187)(2,967)50,497--

23,343Adjusted EBITDA

304,359309,794

58,145

4,145

8,802

(6,583)

678,662(Millions of yen)

Reconciliations

Other

Consolidated

Net sales
Customers

27,697-

Intersegment

5,749(104,853)

-

Total

33,446(104,853)

2,400,139

Segment income(26,834)(12,619)

273,990

2,400,139

Reconciliation from segment income to adjusted EBITDA
Segment income
Depreciation andamortization(26,834)(12,619)

273,990

EBITDA
Unrealized gain and loss
on valuation of
investments in SoftBank
Vision Fund and Delta
Fund

2,843

377

401,868(23,991)(12,242)

675,858

Other adjustments--(56,772)

23,496(110)

Adjusted EBITDA(495)

46,729(12,352)

665,81552

SoftBank Group Corp. Consolidated Financial Report
For the nine-month period ended December 31, 2017

3. Business combinations
For the nine-month period ended December 31, 2016
Arm(1) Overview of consolidation
On July 18, 2016 (GMT), the Company and Arm, located in the United Kingdom, entered into an agreement on
the terms of a recommended all cash acquisition of the entire issued and to be issued share capital of Arm by theCompany for a total acquisition price of approximately ￡24.0 billion (approximately ¥3.3 trillion) by means ofan English court-sanctioned scheme of arrangement (“Acquisition”). The Acquisition was approved at Arm’s
general meeting of shareholders held on August 30, 2016, and at the English court hearing held on September 1,
2016, and came into effect on September 5, 2016.
As a result of the transaction, Arm became a wholly-owned subsidiary of the Company.
(2) Purpose of consolidation
The Company believes Arm is one of the world’s leading technology companies, with strong capabilities in
global semiconductor intellectual property and the “Internet of Things,” and a proven track record of innovation.
The board and management of the Company believe that the acquisition of Arm by the Company will deliver thefollowing benefits:
・Support and accelerate Arm’s position as the global leader in intellectual property licensing and R&D
outsourcing for semiconductor companies
The Company’s deep industry expertise and global network of relationships will accelerate adoption of Arm’s
intellectual property across existing and new markets.
・Maintain Arm’s dedication to innovation
The Company intends to sustain Arm’s long-term focus on generating more value per device, and driving
licensing wins and future royalty streams in new growth categories, specifically “Enterprise and Embedded
Intelligence.”
・Increased investment to drive the next wave of innovation
The Company intends to support Arm’s multiple growth initiatives by investing in engineering talent andcomplementary acquisitions with the aim of ensuring Arm maintains an R&D edge over existing andemerging competitors. The Company believes such an investment strategy in long-term growth will be easier
to execute as a non-listed company.
・Shared culture and long-term vision
The Company believes the two companies share the same technology-oriented culture, long-term vision,
focus on innovation and commitment to attracting, developing and retaining top talent. These common values
will be the foundation for a strong strategic partnership necessary to capture the significant opportunities
ahead.
・Maintain and grow the UK’s leadership in science and technology
The Company is investing in the UK as a world leader in science and technology development and innovation
and, as evidence of this, intends to invest in multiple Arm growth initiatives, at least doubling the number ofArm employees in the UK over the next five years.

53SoftBank Group Corp. Consolidated Financial Report
For the nine-month period ended December 31, 2017(3) Summary of Arm(a) Name

Arm Holdings plc(b) Address

110 Fulbourn Road, Cambridge CB1 9NJ, United Kingdom(c) Name and title of representative

Simon Segars, Chief Executive Officer(d) Nature of business・Design of microprocessor intellectual property and related technology
・Sale of software tools(e) Share capital￡0.7 million (as of December 31, 2015)(f) Date of incorporation

October 16, 1990(g) Consolidated net sales￡968 million(for the fiscal year ended December 31, 2015 under IFRSs)(4) Acquisition date
September 5, 2016

(5) Consideration transferred and the component(Millions of yen)

Acquisition date
(September 5, 2016)
3,319,137

Payment for the acquisition by cash
Fair value of equity interest in Arm already held at thetime of the acquisition

47,867A

Total consideration transferred

3,367,004

Acquisition-related costs of ¥25,780 million arising from the business combination are recognized in “Other
operating loss.”
As a result of the reevaluation of the 1.4% equity interest already held by the Company at the time of theacquisition of control in Arm at fair value, the Company recognized a gain of ¥18,168 million through the step
acquisition. This gain is presented as “Gain from remeasurement relating to business combination” in thecondensed interim consolidated statement of income.

54

SoftBank Group Corp. Consolidated Financial Report
For the nine-month period ended December 31, 2017

(6) Fair value of assets and liabilities, and goodwill on the acquisition date1

(Millions of yen)

Acquisition date
(September 5, 2016)
16,98459,782
119,090698,682
23,649Cash and cash equivalents
Trade and other receivables
Other current assets
Intangible assets2
Other non-current assets
Total assets

918,187

Current liabilities
Deferred tax liabilities
Other non-current liabilities

61,930128,580
7,292

Total liabilities

197,802

Net assets

B

720,385

Goodwill3

A-B

2,646,619

The above amount is translated at the exchange rate (GBP = JPY138.15) as of the acquisition date.
Notes:
1. Adjustment of the provisional amount
Consideration transferred is allocated to acquired assets and assumed liabilities based on the fair value on theacquisition date. Allocation of the consideration was completed during the three-month period ended June 30,
2017. The details of the adjustments from the provisional amounts are as follows. Due to additional analysis on
the fair value of technologies, intangible assets increased by ¥5,250 million and deferred tax liabilities increasedby ¥958 million. As a result, goodwill decreased by ¥4,292 million.
2. Intangible assets
The components of intangible assets are as follows; the estimated useful lives are from 8 to 20 years fortechnologies, 13 years for customer relationships, and 8 years for trademarks.
(Millions of yen)

Acquisition date
(September 5, 2016)
542,930
148,649
5,940
1,163

Technologies
Customer relationships
Trademarks
Other698,682

Total

3. Goodwill
Goodwill reflects excess earning power expected from future business development, congregative humanresources related to research and development, and the synergy between the Company and the acquiree.

55

SoftBank Group Corp. Consolidated Financial Report
For the nine-month period ended December 31, 2017(7) Payment for acquisition of control over subsidiaries(Millions of yen)

Nine-month period ended
December 31, 2016
(3,319,137)

Payment for the acquisition by cash
Foreign currency exchange gain relating to settlement*
Cash and cash equivalents held by the acquiree at the time ofacquisition of control
Payment for the acquisition of control overthe subsidiary by cash

52,856
16,984(3,249,297)

Note:*Fluctuation in foreign currency exchange rates arising from the acquisition date to the settlement date
(September 15, 2016).

(8) Sales and net income of the acquiree
The amounts of the acquiree’s sales and net income before elimination of inter-company transactions after theacquisition date, which are recorded in the condensed interim consolidated statement of income for thenine-month period ended December 31, 2016, are ¥68,855 million and ¥18,566 million, respectively. In addition,amortization expenses related to intangible assets recognized on the acquisition date are included in the
aforementioned net income.
For the nine-month period ended December 31, 2017
Fortess(1) Overview of consolidation
The Company and Fortress entered into a definitive merger agreement under which the Company acquires
Fortress for $3.3 billion in cash in February 2017. Under the term of the merger agreement, on December 27,
2017 the completion followed the satisfaction of all conditions to the closing of the transaction, including
approval of the transaction by Fortress shareholders on July 12, 2017 and receipt of all necessary regulatory
approvals. Each outstanding Fortress share was converted into the right to receive $8.08 per share in cash, withmerger proceeds to be distributed in accordance with payment procedures outlined in Fortress’s Definitive
Proxy dated June 7, 2017 and the merger agreement incorporated. Actual payment amounted to $3.2 billion as aresult of adjusting the impact of distributions and other after the date of merger agreement.
As a result of the transaction, the Company owned all equity interests of Fortress and Fortress became awholly-owned subsidiary of the Company.
(2) Purpose of consolidation
The Company looks forward to benefitting from its leadership, road-based expertise and world-class investment
platform. For the Company, this opportunity will immediately help expand our group capabilities, and,alongside SoftBank Vision Fund and Delta Fund platform, will accelerate our SoftBank 2.0 transformation
strategy of bold, disciplined investment and world class execution to drive sustainable long-term growth.

56

SoftBank Group Corp. Consolidated Financial Report
For the nine-month period ended December 31, 2017(3) Summary of Fortress(a) Name

Fortress Investment Group LLC(b) Address

1345 Avenue of the Americas, New York, NY
Peter L. Briger, Jr., Principal and Co-Chief Executive Officer
Wesley R. Edens, Co-Founder, Principal and Co-Chief Executive Officer
Randal A. Nardone, Co-Founder and Principal
Alternative investment management business(c) Name and title of representative(d) Nature of business(e) Date of incorporation(f) Consolidated net sales

1998$1,163,806 thousand(for the fiscal year ended December 31, 2016 under US GAAP)(4) Acquisition date
December 27, 2017(5) Consideration transferred and the component(Millions of yen)

Acquisition date
(December 27, 2017)358,612(58,128)

Payment by cash
Payment not included in consideration transferred *300,484

A

Total consideration transferred

Acquisition-related costs of ¥6,123 million arising from the business combination are recognized in “Other
operating loss.”
Note:* Payment not included in consideration transferred is the payment for a transaction, separate from the businesscombination, that remunerates employees and former owners of Fortress. For the payment, continuing employment is
a condition. Depending on the period set in the condition, the Company recognized the payments of ¥16,954 million
as “Other current assets” and ¥41,174 million as “Other non-current assets,” respectively.
(6) Fair value of assets and liabilities, and goodwill on the acquisition date(Millions of yen)

Acquisition date
(December 27, 2017)45,57243,851
11,021
97,156
176,690
30,621

Cash and cash equivalents
Trade and other receivables
Other current assets
Investments accounted for using the equity method
Intangible assets1
Non-current assets
Total assets

404,911

Current liabilities
Non-current liabilities

60,04848,090Total liabilities

108,138

Net assets

B

296,773

Non-controlling interests

C14,85018,561

2

A-(B-C)

Goodwill

57

SoftBank Group Corp. Consolidated Financial Report
For the nine-month period ended December 31, 2017

Consideration transferred is allocated to acquired assets and assumed liabilities based on the fair value on theacquisition date. Moreover, the above amounts, which are fair values based on the best estimate at present, maychange in a year from the acquisition date when additional information related to facts and circumstances thatexisted as of the acquisition date may be obtained.
The above amount is translated at the exchange rate (USD = JPY113.41) as of the acquisition date.
Notes:
1. Intangible assets
The components of intangible assets are as follows; the estimated useful lives are 3 years for software, from 1.5 to10 years for management contracts, and 10 years for trademarks. The management contracts reflect excessive
earnings in the future expected from the agreements which Fortress entered into regarding the asset management of
their funds.
(Millions of yen)

Acquisition date
(December 27, 2017)
1,762
128,323
5,103
41,502
176,690

SoftwareManagement contracts
Trademarks
Other
Total

2. Goodwill
Goodwill reflects excess earning power expected from future business development and the synergy with existing
businesses.

(7) Payment for acquisition of control over subsidiaries(Millions of yen)

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

Nine-month period ended
December 31, 2017
(300,484)
45,572(254,912)(8) Sales and net loss of the acquiree
The amount of the acquiree’s net loss before elimination of inter-company transactions after the acquisition date,
which is recorded in the condensed interim consolidated statement of income for the nine-month period ended
December 31, 2017, is ¥2,639 million. No sales are recorded. In addition, amortization expenses related tointangible assets and other recognized on the acquisition date are included in the aforementioned net loss.
(9) Collateral
Based on a term loan agreement of $1.4 billion which was entered into to finance this acquisition, the equity
interests of Fortress and 4 wholly-owned subsidiaries within this acquisition structure are pledged as collateral.

58SoftBank Group Corp. Consolidated Financial Report
For the nine-month period ended December 31, 2017

4. Other financial assets
The components of the carrying amounts of other financial assets are as follows:(Millions of yen)

As ofMarch 31, 2017
Current
Marketable securities
Time deposits (maturities of three-month over)
Other
Total

277,895
458,495
58,299794,689

As of
December 31, 201729,080103,006
76,031
208,117

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

As ofMarch 31, 2017
263,061
2,654,096
627,730
99,905
302,177
30,285
3,977,254

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

As of
December 31, 2017242,828
2,442,925
815,590
89,646
301,385
68,2833,960,657

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

As ofMarch 31, 2017
Intangible assets with indefinite useful lives
FCC licenses
Trademarks
Other
Intangible assets with finite useful lives
SoftwareTechnologies
Customer relationships
Management contracts*
Spectrum migration costs
Favorable lease contracts
Trademarks
Other
Total

As of
December 31, 2017

4,100,651
703,031-4,209,572
705,442
41,143722,934
522,894448,806
103,814104,754
57,532
182,223
6,946,639

749,579
542,469
367,706
127,639
98,82097,461
61,528
166,952
7,168,311

Note:* The management contracts reflect excessive earnings in the future expected from the agreements which Fortress enteredinto regarding the asset management of their funds.

59SoftBank Group Corp. Consolidated Financial Report
For the nine-month period ended December 31, 2017

7. Income taxes
Due to the enactment of the Tax Reform Act in December 2017 in the U. S., in Sprint, deferred tax liability of¥829,762 million was reversed. Also income taxes decreased by ¥818,342 million and other comprehensive income
increased by ¥8,244 million. The details are as follows.
(1) Reduction in the federal corporate tax rate
The federal corporate tax rate was reduced from 35% to 21% effective January 1, 2018.
Due to the reduction, ¥593,137 million of a part of deferred tax liabilities related to FCC license and others, which
was calculated based on the tax rate as of the acquisition of Sprint in 2013, was reversed. Also income taxes are
decreased by ¥591,773 million.
(2) Abolition of time limit on use of future loss carryforwards
Net operating losses generated in tax years beginning after December 31, 2017 may be carried forward indefinitely.
For Sprint, its tax year starts from April, therefore net operating losses generated after April 1, 2018 may be carriedforward indefinitely.
In Sprint, for certain deductible temporary differences where deferred tax assets could not be previously realized, it
was likely to be recoverable because the taxable temporary differences from assets with indefinite lives, such as
FCC licenses, may be a source of future taxable income. As a result of this change, ¥236,625 million of deferred tax
assets were recognized (offset by deferred tax liabilities). Also income taxes decreased by ¥226,569 million andother comprehensive income increased by ¥8,244 million.

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

As ofMarch 31, 2017
Current
Short-term borrowings1
Commercial paper
Current portion of long-term borrowings1
Current portion of corporate bonds
Current portion of lease obligations
Current portion of installment payables
Total
Non-current
Long-term borrowings1
Corporate bonds
Lease obligations
Financial liabilities relating to sale of shares by variable
prepaid forward contract2
Installment payables
Total

60

As of
December 31, 2017667,664
80,0001,128,510
339,462438,284
40,173
2,694,093

865,892
100,000
926,664
619,292
458,812
20,392
2,991,052

3,377,625
7,233,838
807,606

3,993,368
7,290,036
782,973715,448

729,234

29,76012,164,277

18,29012,813,901

SoftBank Group Corp. Consolidated Financial Report
For the nine-month period ended December 31, 2017

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

As ofMarch 31, 2017
Current
Short-term borrowings
Current portion of long-term borrowings
Total
Non-current
Long-term borrowings
Total
SoftBank Vision Fund and Delta Fund interest-bearing debt
(before elimination of inter-company transactions)Eliminated amount of inter-company transactions
SoftBank Vision Fund and Delta Fund interest-bearing debt
(after elimination of inter-company transactions)

As ofDecember 31, 2017-

213,735
98,225
311,960-

66,494
66,494-

378,454-(5,770)-372,684¥ 659,658 million of investments from SoftBank Vision Fund and Delta Fund accounted for using FVTPL is pledged
as collateral for ¥326,309 million of interest-bearing debt and the amount is included in the above table.
2. The details are described in “(2) Transaction for sale of Alibaba shares by variable prepaid forward contract.”(2) Transaction for sale of Alibaba shares by variable prepaid forward contract
On June 10, 2016, West Raptor Holdings, LLC (“WRH LLC”), a wholly-owned subsidiary of the Company,
entered into a variable prepaid forward contract to sell Alibaba shares with a newly formed trust, Mandatory
Exchangeable Trust (the “Trust”), and received proceeds of ¥578,436 million ($5.4 billion) as advances received
on the sale.
The Trust, on the other hand, utilized Alibaba shares scheduled to be transferred from WRH LLC at the time ofsettlement under the contract and issued $6.6 billion of Mandatory Exchangeable Trust Securities (“Trust
Securities”) which are mandatorily exchangeable into American depositary shares (“ADSs”) of Alibaba. The
proceeds from the sale received by WRH LLC from the Trust was $5.4 billion, which is after certain amounts
from the $6.6 billion total of Trust Securities were deducted in order to purchase U.S. Treasury securities, which
would fund distributions on the Trust Securities, and to cover expenses for the issuance of the Trust Securities.
The settlement of the Alibaba shares based on the variable prepaid forward contract is conducted concurrently
with the exchange of Trust Securities. At the exchange date, which is expected to be the first scheduled trading
day after June 1, 2019, Trust Securities are exchanged for a certain number of ADSs, determined by reference tothe trading price of the ADSs at that time, and the number of Alibaba shares sold by the variable prepaid forward
contract is determined by this number of ADSs. A cap and a floor are set for the number of shares settled, and thevariable prepaid forward contract is classified as a hybrid financial instrument with embedded derivatives ofcollar transaction.
The Company accounts for the variable prepaid forward contract by bifurcating the main contracts and embedded
derivatives. The Company received ¥578,436 million and initially recognized ¥674,023 million as financial
liabilities relating to the sale of shares through the variable prepaid forward contract and ¥95,587 million as
derivative assets. Subsequent to initial recognition, financial liabilities relating to the sale of shares through thevariable prepaid forward contract are measured at amortized cost and embedded derivatives are measured at fairvalue; ¥729,234 million (¥715,448 million as of March 31, 2017) is recognized as financial liabilities relating to
the sale of shares through the variable prepaid forward contract in interest-bearing debt (non-current liabilities)and ¥662,108 million (¥143,935 million as of March 31, 2017) is recognized as derivative financial liabilities

61SoftBank Group Corp. Consolidated Financial Report
For the nine-month period ended December 31, 2017(non-current liabilities) in the condensed interim consolidated statement of financial position as of December 31,
2017; ¥510,278 million (¥72,293 million of derivative loss for the nine-month period ended December 31, 2016)is recognized as a derivative loss in the condensed interim consolidated statement of income for the nine-month
period ended December 31, 2017.
WRH LLC has the option (“cash settlement option”) to settle the variable prepaid forward contract by eitherdelivering cash or a combination of cash and Alibaba shares. If WRH LLC elects the cash settlement option, thecash equivalent to the fair value of the number of shares for the settlement, which is determined by the transaction
price of ADSs, will be paid.
Also, WRH LLC has the option (“early settlement option”) to settle the variable prepaid forward contract prior to
the scheduled settlement date. Settlement of the variable prepaid forward contract may be made prior to thescheduled settlement date if WRH LLC elects the early settlement option or under certain other circumstances.
Alibaba shares held by WRH LLC are pledged as collateral. The Company applies the equity method to theseshares and they are included in “Investments accounted for using the equity method” in the condensed interim
consolidated statement of financial position as of December 31, 2017. The carrying amount of Alibaba shares
pledged as collateral by the Company is ¥209,464 million as of December 31, 2017 (¥154,440 million as ofMarch 31, 2017).
Outline of the transaction
subsidiary
wholly-owned subsidiaryWest Raptor Holdings, LLC
Approximately $5.4 billion
for advances received
for the sale of Alibaba sharesby variable prepaid forward contract

third party to
SoftBank

Alibaba shares pledged as collateralby variable prepaid forward contract

Mandatory Exchangeable TrustOffering of Mandatory Exchangeable
Trust Securities (“Trust Securities”)$6.6 billion for the total issuanceamount of Trust Securities
Investors(3) Components of increase and decrease in short-term interest-bearing debt
The components of “Increase in short-term interest-bearing debt, net” in the condensed interim consolidated
statement of cash flows are as follows:(Millions of yen)

Nine-month period ended Nine-month period ended
December 31, 2016
December 31, 2017
300,024
292,582
55,00020,000Net increase of short-term borrowings
Net increase of commercial paper
Total

355,024

62

312,582SoftBank Group Corp. Consolidated Financial Report
For the nine-month period ended December 31, 2017(4) Components of proceeds from long-term interest-bearing debt
The components of “Proceeds from long-term interest-bearing debt” in the condensed interim consolidated
statement of cash flows are as follows:(Millions of yen)

Proceeds from long-term borrowings
Proceeds from issuance of corporate bonds
Proceeds from sale and leaseback of newly acquired
equipment
Proceeds from advances received for sale of shares by
variable prepaid forward contract
Total

Nine-month period ended Nine-month period ended
December 31, 2016
December 31, 2017
2,113,485
3,687,621
521,000
735,804
372,730

361,777

578,436-

3,585,651

4,785,202(5) Components of repayment of long-term interest-bearing debt
The components of “Repayment of long-term interest-bearing debt” in the condensed interim consolidated
statement of cash flows are as follows:(Millions of yen)

Nine-month period ended Nine-month period ended
December 31, 2016
December 31, 2017
(519,536)(3,378,241)(350,081)(459,903)(338,717)(367,238)(36,933)(33,164)(1,245,267)(4,238,546)

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

9. 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, 2017112.19140.08

USD
GBP

As of
December 31, 2017
113.00151.95(2) Average rate for the quarter
For the nine-month period ended December 31, 2016

USD
GBP*

Three-month period ended
June 30, 2016
109.07-

Three-month period ended
September 30, 2016
102.91132.95(yen)
Three-month period ended
December 31, 2016108.72135.56Note:* Average rate described for the three-month period ended September 30, 2016 is the average rate for a month
period of September 2016.

63

SoftBank Group Corp. Consolidated Financial Report
For the nine-month period ended December 31, 2017

For the nine-month period ended December 31, 2017

USD
GBP

Three-month period ended
June 30, 2017111.61142.92Three-month period ended
September 30, 2017111.38146.20(yen)
Three-month period ended
December 31, 2017112.74150.77

10. Equity
The components of accumulated other comprehensive income are as follows:(Millions of yen)

As ofMarch 31, 2017

As ofDecember 31, 2017

Available-for-sale financial assets

11,98374,938Cash flow hedges
Exchange differences on translating
foreign operations(44,877)(56,477)

244,140

621,034

211,246

639,495

Total

11. Other equity instruments
On July 19, 2017, the Company issued USD-denominated Undated Subordinated NC6 Resettable Notes andUSD-denominated Undated Subordinated NC10 Resettable Notes (collectively, the “Hybrid Notes”).
The Hybrid Notes are classified as equity instruments in accordance with International Financial ReportingStandards because the Company has the option to defer interest payments, the notes have no maturity date, and theCompany has an unconditional right to avoid delivering cash or another financial asset except for distribution ofresidual assets on liquidation. As a result of this transaction, ¥496,876 million (after deducting ¥7,034 million oftransaction costs) of “Other equity instruments” is increased in equity in the condensed interim consolidated
statement of financial position. The corresponding amount is recorded as “Proceeds from issuance of other equity
instruments” under cash flows from financing activities in the condensed interim consolidated statement of cash
flows.
Also, as of December 31, 2017, accrued interest, which is not recognized as distribution to owners of other equity
instruments because the payment has not been determined yet, is ¥14,508 million.
In addition, the payment was determined after January 1, 2018 and ¥15,852 million of the payment including theabove accrued interest has been completed on the interest payment date, January 19, 2018.

64

SoftBank Group Corp. Consolidated Financial Report
For the nine-month period ended December 31, 2017

The details of the Hybrid Notes are as follows:1.

Undated Subordinated NC6

Undated Subordinated NC10

Resettable Notes

Resettable Notes

Total amount of issue

2.

Issue price

USD 2.75 billion

USD 1.75 billion(JPY 307.9 billion)(JPY 196.0 billion)

100% of the principal amount

100% of the principal amount

6.000% per annum

6.875% per annum*

3.

Initial interest rate

4.

Maturity date5.

Optional redemption

None (Perpetual)

None (Perpetual)

The Company may, at its discretion, redeem

The Company may, at its discretion, redeem

the NC6 Notes on the first call date on July

the NC10 Notes on the first call date on July19, 2023 or any interest payment date19, 2027 or any interest payment datethereafter.

thereafter

6.

Interest payment

Payable semi-annually in arrear on January 19 and July 19 each year

7.

Closing dateJuly 19, 20178.

Collateral

None

9.

Guarantee

None

10.

Covenants

None

11.

Subordination

In the event of bankruptcy, etc., the Hybrid Notes shall be subordinated to all the Company’s
senior indebtedness (including domestic subordinated bonds issued in 2014 and 2015 by theCompany) and shall rank substantially pari passu with the domestic hybrid bonds issued in2016 by the Company and its senior preference shares (if issued in the future) and senior to
the Company’s common stock.

12.

Listing

Singapore Exchange Securities Trading Limited

13.

Use of proceeds

The Company used the proceeds of issuance of the Hybrid Notes for general corporate
purposes.

Note:* There is a step-up interest provision on the Undated Subordinated NC6 Resettable Note of 25bps on July 19, 2023 andadditional 75bps on July 19, 2038, and on the Undated Subordinated NC10 Resettable Note of 25bps on July 19, 2027 andadditional 75bps on July 19, 2042.

12. Operating income from SoftBank Vision Fund and Delta FundThe components of operating income from SoftBank Vision Fund and Delta Fund are as follows:(Millions of yen)

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

Nine-month period ended
December 31, 2016

Nine-month period ended
December 31, 2017-

251,108-

3,744(18,425)
236,427

Note:* “Realized gain and loss on sales of investments” is not recognized for the nine-month period ended December 31,
2017.

65

SoftBank Group Corp. Consolidated Financial Report
For the nine-month period ended December 31, 2017

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

Sprint segment
Gain on spectrum license exchange1
Litigation2
Gain and loss on contract termination
Loss on disposal of property, plant andequipment3
U.S. state tax charge
OtherYahoo Japan segment
Insurance income4
Other
Distribution segment
Impairment loss on goodwill5
Impairment loss on non-current assets5
Arm segment
Acquisition-related costs
Company-wide
Expenses resulting from resignation of director6
Other
Write-down of inventories7
Acquisition-related costs8
Other
Total

Nine-month period ended
December 31, 2016

Nine-month period ended
December 31, 201736,385(12,287)

53,43541,247558(39,617)(58,344)(10,600)(7,453)

3,023

-

4,929
2,967

-

(43,128)(7,369)(25,780)-(8,283)(1,427)(67,635)(13,585)(6,123)(3,788)(27,605)

Notes:
1. License exchange gain resulting from the exchange of a certain portion of the telecommunications spectrum withother carriers (non-cash transaction). The spectrum is recorded as FCC licenses in intangible assets.
2. Mainly, net benefit in litigation associated with legal settlements for patent infringement lawsuits.
3. For the nine-month period ended December 31, 2017, mainly, ¥20,171 million of loss related to cell site
construction costs that are no longer expected to be used as a result of changes in Sprint’s network plans and¥38,842 million of loss resulted from the write-off of leased devices related to lease cancellations prior to thescheduled customer lease terms where customers did not return the devices to Sprint are recognized.
4. Insurance proceeds related to a fire incident which occurred at a logistics center of ASKUL Corporation (ASKUL
Logi PARK Tokyo Metropolitan) in February 2017.
5. Impairment losses at Brightstar. Goodwill of Brightstar is allocated to the entirety of Brightstar (a group of
cash-generating units), which had bundled four cash-generating units (Brightstar’s US & Canada, Latin America,
Asia & Oceania, and Europe & Africa), and intangible assets with indefinite useful lives other than goodwill areallocated to three cash generating units (Brightstar’s US & Canada, Asia & Oceania, and Europe & Africa),
respectively. The business plan of Brightstar was revised for the nine-month period ended December 31, 2017,and indicators of impairment existed at all cash-generating units and a group of cash-generating units ofBrightstar wherein goodwill and intangible assets with indefinite useful lives of Brightstar are allocated, therefore
the impairment test was conducted on all cash-generating units and a group of cash-generating units. As a resultof the impairment test, an impairment loss was recognized because the recoverable amounts of Brightstar (agroup of cash-generating units) and Brightstar’s Europe & Africa cash-generating unit were less than thosecarrying amounts. Impairment losses on goodwill, intangible assets, and property, plant and equipment were¥43,128 million, ¥6,630 million, and ¥739 million, respectively.

66

SoftBank Group Corp. Consolidated Financial Report
For the nine-month period ended December 31, 2017

Fair value less disposal cost is used as the recoverable amount and measured with the income approach and themarket approach. Under the income approach, it is measured by discounting cash flows which are estimatedbased on business plans for the next 10 years while taking into account future cash flows that market participants
would expect to receive in accordance with their assumptions discounted to the present value using a post-tax
discount rate of 10.5-11%. The cash flows from after 10 years are assumed on the basis of a 3% growth rate.
Under the market approach, EV/EBITDA of similar companies which are comparable to Brightstar Global Group
Inc. is used.
6. Expense resulting from the resignation of Nikesh Arora from his position as a director. Resignation expenseconsists of expenses whose payment amounts are defined and expenses whose payment amounts are to be defined
depending on the future share price of SoftBank Group Corp. shares. Expenses based on the share price aresettled in two installments in June 2017 and March 2018. Payment amount is determined based on the share pricein June 2017 and March 2018, respectively.
In addition to the entire expense whose payment amount is defined, the Company measured the expense based on
the SoftBank Group Corp. share price as of December 31, 2016 and recorded an expense of ¥3,266 million during
the nine-month period ended December 31, 2016. The expense is remeasured every quarter end based on theshare price of SoftBank Group Corp. until the determination of the payment amount, and the changes arerecognized through profit or loss.
7. As a result of revising the business plan of Sports Live Entertainment Corporation which operates a sports
content distribution business, the net realizable value of inventories was less than its carrying amount and,
therefore, a write-down was recognized.
8. Expenses arising from the business combination of Fortress. The details are described in “Note 3. Businesscombinations.”

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

Nine-month period ended
December 31, 2016

Nine-month period ended
December 31, 2017

(343,363)(383,337)

Interest expenses*

Note:*¥(1,665) million of interest expenses recorded in SoftBank Vision Fund and Delta Fund is included in the above
interest expense for the nine-month period ended December 31, 2017 (¥(1,708) million before elimination ofinter-company transactions).

15. Derivative loss
¥510,278 million of derivative loss (¥72,293 million of derivative loss for the nine-month period ended December
31, 2016) related to Alibaba shares collar transaction included in variable prepaid forward contract was recorded.
The details are described in “(2) Transaction for sale of Alibaba shares by variable prepaid forward contract” under“Note 8. Interest-bearing debt.”

67SoftBank Group Corp. Consolidated Financial Report
For the nine-month period ended December 31, 2017

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

Dilution gain from changes in equity interest1
Gain and loss from financial instruments at
FVTPL2
Impairment loss on assets classified as held
for sale
Other
Total

Nine-month period ended
December 31, 2016
75,060Nine-month period ended
December 31, 2017
38,922(39,281)

8,069(42,540)-(6,715)(13,476)

3,187
50,178Notes:
1. Mainly, gain arising from changes in Alibaba’s equity interest held by the Company, due to the exercise of stock
options and the allocation of new shares to a third party in Alibaba.
2. Gain and loss arising from financial instruments at FVTPL consist mainly of changes in fair value of preferred stock
investments including embedded derivatives designated as financial assets at FVTPL.

17. Supplemental information to the condensed interim consolidated statement of cash flows(1) Payments for acquisition of investments by SoftBank Vision Fund and Delta FundFor the nine-month period ended December 31, 2017
¥812,042 million which was included in “Payments for acquisition of investments” in cash flows from investing
activities for the three-month period ended June 30, 2017 is reclassified as investments transferred to SoftBank
Vision Fund and Delta Fund from the Company or the Agreed Transferable Investments for the three-month period
ended September 30, 2017, and accordingly the amount is reclassified as “Payments for acquisition of investments
by SoftBank Vision Fund and Delta Fund” under cash flows from investing activities in the condensed interim
consolidated statement of cash flows for the nine-month period ended December 31, 2017.

(2) Contributions into SoftBank Vision Fund and Delta Fund from third-party investors
For the nine-month period ended December 31, 2017
The amount is after deducting ¥15,450 million that was returned to Third-Party Investors of SoftBank Vision Funddue to the change in an investment plan after the contribution from Third-Party Investors.

18. Significant subsequent events(1) Acquisition of shares of Uber Technologies, Inc. (“Uber”)
An overseas subsidiary of SoftBank Group Corp. and Uber, an operator of a ride-sharing service, entered into anagreement by December 31, 2017 that the overseas subsidiary purchases issued and to be issued share capital of
Uber for a total amount of $7.67 billion and the acquisition was completed on January 18, 2018.
Uber is not classified as a subsidiary nor an associate of the Company.
The impact of this agreement on the operating results as of March 31, 2018, has not been determined at present.

68SoftBank Group Corp. Consolidated Financial Report
For the nine-month period ended December 31, 2017

(2) Acquisition of shares of Xiaoju Kuaizhi Inc. (“DiDi”)
An overseas subsidiary of SoftBank Group Corp. and DiDi, an operator of a ride-sharing service in China, enteredinto an agreement that an overseas subsidiary would purchase issued and to be issued share capital of DiDi for a
total amount of $4.58 billion and of this, $3.59 billion of shares were purchased on January 11, 2018. Agreementswith DiDi and existing shareholders relating to $4.39 billion of $4.58 billion were executed by December 31, 2017,
and the remaining $0.19 billion were executed in January, 2018.
DiDi is not classified as a subsidiary nor an associate of the Company after the closing of this transaction.
The impact of this agreement on the operating results as of March 31, 2018, has not been determined at present.
(3) Consolidation of The Japan Net Bank, Limited
Yahoo Japan Corporation consolidated The Japan Net Bank, Limited (“The Japan Net Bank”) by appointing the
majority of The Japan Net Bank’s directors, through a resolution in an Extraordinary Meeting of the Shareholders’of The Japan Net Bank held on February 1, 2018.
In addition, calculation of fair value of acquired assets and assumed liabilities on the acquisition date has not been
completed at present and therefore detailed information on the accounting treatment for the business combination
including fair values of goodwill, acquired assets, and assumed liabilities on the acquisition date has not been
disclosed.
a. Overview of consolidation
In the Yahoo Japan segment, since its commencement of new strategies in the Commerce Business in October
2013, transaction volume has rapidly increased by means of various measures such as waiving store tenant fees,
point reward measures, and start of the Credit Card business. It is believed to strengthen its financial andpayment business further is necessary in order to revitalize the Commerce Business from here on. The
ecosystem of its services in the Yahoo Japan segment is reinforced through the consolidation of The Japan Net
Bank.
In addition, Yahoo Japan Corporation leads the management of The Japan Net Bank through the consolidation
and utilizes the customer base and multi big data that Yahoo Group has fostered thus far to provide highvalue-added financial services for The Japan Net Bank customers.
The voting rights ratio in The Japan Net Bank held by the Company remains the same as before at 41.16% and
the Company does not hold a majority. However, the Company made The Japan Net Bank its consolidated
subsidiary by appointing the majority of The Japan Net Bank’s directors through a resolution in an
Extraordinary Meeting of the Shareholders’ of The Japan Net Bank held on February 1, 2018.
b. Summary of acquiree
Name
Nature of business

The Japan Net Bank, Limited
Banking businessc. Acquisition dateFebruary 1, 201869