SoftBank Group Corp. Consolidated Financial Report
For the six-month period ended September 30, 2017

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

SoftBank Group Corp.
Consolidated Financial Report
For the six-month period ended September 30, 2017 (IFRS)Tokyo, November 6, 2017

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%%%Six-month period ended¥4,411,135 3.3 ¥874,839 35.1 ¥219,021 (66.8) ¥143,742 (82.0) ¥102,622 (86.6) ¥514,591 635.5
September 30, 2017
Six-month period ended
September 30, 2016

¥4,271,834 (0.2) ¥647,363 2.4¥659,044 (14.2) ¥800,215 57.3

Basic earnings per
share (yen)Diluted earnings per
share (yen)Six-month period ended
September 30, 2017¥88.29¥84.97Six-month period ended
September 30, 2016

¥679.09¥675.18¥765,516 79.4

¥69,963 (85.5)

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 September 30, 2017¥27,973,483¥5,468,373¥4,566,164

16.3

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

SoftBank Group Corp. Consolidated Financial Report
For the six-month period ended September 30, 2017

* 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 29 “(1) Significant Changes in Scope of Consolidation for the Six-month Period Ended September
30, 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: No
Please refer to page 29 “(2) Changes in Accounting Policies” under “2. Notes to Summary Information” for details.
(3) Number of shares issued (common stock)[1] Number of shares issued (including treasury stock):
As of September 30, 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 September 30, 2017:11,159,776 shares
As of March 31, 2017:
11,378,076 shares[3] Number of average shares outstanding during six-month period (April-September):
As of September 30, 2017:
1,089,430,669 shares
As of September 30, 2016:
1,127,267,175 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 thesix-month period ended September 30, 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 November 6, 2017, 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 six-month period ended September 30, 2017

(Appendix)
Contents
1. Results of Operations ...............................................................................................................................................

P. 2(1) Overview of Results of Operations ...................................................................................................................

P. 2

a. Consolidated Results of Operations ................................................................................................................

P. 2

b. Results by Segment ........................................................................................................................................

P. 7(2) Overview of Financial Position ........................................................................................................................ P. 22(3) Overview of Cash Flows .................................................................................................................................. P. 27(4) Forecasts ........................................................................................................................................................... P. 28

2. Notes to Summary Information ............................................................................................................................... P. 29(1) Significant Changes in Scope of Consolidation for the Six-month Period Ended September 30, 2017 ............ P. 29(2) Changes in Accounting Policies ........................................................................................................................ P. 29

3. Condensed Interim Consolidated Financial Statements and Primary Notes.......................................................... P. 30(1) Condensed Interim Consolidated Statement of Financial Position .................................................................... P. 31(2) Condensed Interim Consolidated Statement of Income and Condensed Interim Consolidated Statement of Comprehensive Income ................................................................................................................................................. P. 33(3) Condensed Interim Consolidated Statement of Changes in Equity ................................................................... P. 37(4) Condensed Interim Consolidated Statement of Cash Flows .............................................................................. P. 39(5) Significant Doubt about Going Concern Assumption ....................................................................................... P. 41(6) Notes to Condensed Interim Consolidated Financial Statements ...................................................................... P. 41

1

SoftBank Group Corp. Consolidated Financial Report
For the six-month period ended September 30, 2017

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 CorporationArm
Arm Holdings plc
SVF
SoftBank Vision Fund (Note)
Alibaba
Alibaba Group Holding Limited
Three-month period ended September 30, 2017
The second quarter
Six-month period ended September 30, 2017
The period
September 30, 2017
The end of the second quarter
Fiscal year ended March 31, 2017
The previous fiscal year
March 31, 2017
The previous fiscal year-end
Note: SVF consists of a fund managed by SVF GP (Jersey) Limited (“Vision Fund”), a fund managed by SB Delta Fund GP (Jersey)
Limited (“Delta Fund”), and advisory companies (SB Investment Advisers (UK) Limited (“SBIA”), a wholly-owned U.K. subsidiary of
the Company, and US and Japanese advisory companies supporting SBIA) which will provide investment advice to each general partner.

1. Results of Operations(1) Overview of Results of Operations
a. Consolidated Results of Operations(Millions of yen)Six months ended September 30
2016
2017
Continuing operations
Net sales
Operating income (excluding income from
SVF)
Operating income from SVF
Operating income
Income before income tax
Net income from continuing operations

ChangeChange %4,271,834

4,411,135

139,301

3.3%

647,363–
647,363
659,044
241,630

688,601
186,238
874,839
219,021
143,742

41,238186,238
227,476(440,023)(97,888)

6.4%
35.1%
(66.8%)(40.5%)

Discontinued operations
Net income from discontinued operations

558,585-(558,585)-

Net income
Net income attributable to owners of the parent

800,215
765,516

143,742
102,622(656,473)(662,894)(82.0%)(86.6%)

Reference: Average exchange rates used for translations

USD / JPY

Q1

Q2

¥109.07¥102.91

Fiscal year ended
March 2017
Q3
Q4
¥108.722¥113.76

Fiscal year ending
March 2018
Q1
Q2
¥111.61¥111.38

SoftBank Group Corp. Consolidated Financial Report
For the six-month period ended September 30, 2017

About SoftBank Vision Fund
The Company established the SVF segment as a new reportable segment during the three months ended June 30, 2017 (the“first quarter”) upon SVF having completed its first major closing on May 20, 2017. To enable investors to appropriately
understand and assess the Company’s management performance, the Company has presented operating income arisingfrom SVF separately from that of other segments in a subcategory under operating income in the Condensed Interim Consolidated Statement of Income as “Operating income from SVF.” For further details of SVF, please refer to “2. SVF” under“(6) Notes to Condensed Interim Consolidated Financial Statements” in “3. Condensed Interim Consolidated Financial
Statements and Primary Notes.”

An overview of the consolidated results of operations for the period is as follows:(Continuing Operations)(a) Net Sales
Net sales increased by ¥139,301 million (3.3%) year on year to ¥4,411,135 million. Net sales of the Sprint segment, theYahoo Japan segment, the Distribution segment, and the Arm segment increased. Arm’s net sales reflected results of operations from September 6, 2016. Meanwhile, net sales of the Domestic Telecommunications segment decreased.

(b) Operating Income (excluding income from SVF)
Operating income (excluding income from SVF) increased by ¥41,238 million (6.4%) year on year to ¥688,601 million.
Segment income increased by ¥97,611 million in the Sprint segment. Meanwhile, segment income decreased by ¥31,965
million in the Domestic Telecommunications segment, ¥6,681 million in the Yahoo Japan segment, ¥6,942 million in theDistribution segment, and ¥9,671 million in the Arm segment.

(c) Operating Income from SVF
Operating income from SVF was ¥186,238 million (not recorded in the same period of the previous fiscal year). The
primary components were unrealized gain on valuation of investments of ¥194,336 million and operating expenses of¥8,098 million. Unrealized gain on valuation of investments mainly reflects the recognition of an increase in the fair valueof NVIDIA Corporation (“NVIDIA”) shares held by SVF (as a financial asset at FVTPL) during the period.

(d) Operating Income
As a result of (b) and (c), operating income increased by ¥227,476 million (35.1%) year on year to ¥874,839 million.
(e) Finance Cost
Finance cost increased by ¥21,436 million (9.7%) year on year to ¥243,458 million, mainly due to increases in interest
expense of ¥15,613 million at SoftBank Group Corp. and ¥3,812 million at Sprint from the same period of the previous
fiscal year. 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 compared to the level a year ago.

3

SoftBank Group Corp. Consolidated Financial Report
For the six-month period ended September 30, 2017(f) Income on Equity Method Investments
Income on equity method investments increased by ¥3,116 million (3.0%) year on year to ¥108,290 million. This was
mainly due to an increase in income on equity method investments related to Alibaba of ¥10,975 million (10.1%) year on
year to ¥119,643 million.
Reference: Net Income of Alibaba and the Company’s Income on Equity Method Investments
Six months ended June 301
2016
2017

ChangeAlibaba
Million CNY

Million CNY

12,91525,33012,415

Million CNY

Million CNY

Million CNY

21,097

24,1693,072

Six months ended September 30
2016
2017

ChangeNet income (US GAAP)Net income (IFRSs)

Million CNY

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

30.70%

29.48%(1.22%)

Million CNY

Million CNY

Million CNY

6,879¥15.807,215¥16.58336¥0.78

Million yen

Million yen

Million yen

108,668

119,643

10,975(g) Gain on Sales of Equity Method Associates
Gain on sales of equity method associates was ¥1,510 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) Exchange Gain and Loss
Foreign exchange gain was ¥10,942 million (gain of ¥83,071 million in the same period of the previous fiscal year). Thiswas mainly attributable to a foreign exchange gain the Company had recorded in the same period of the previous fiscal
year for the difference in the amount of borrowings made by SoftBank Group Corp. from a foreign subsidiary due to adifference in the foreign exchange rate between the time of borrowing and the time of repayment.

(i) Derivative Gain and Loss
Derivative loss was ¥504,681 million (loss of ¥170,058 million in the same period of the previous fiscal year). This was
mainly attributable to a loss of ¥508,421 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

1

The Company applies the equity method to the financial statements of Alibaba on a three-month time lag, as it is impracticable to conform the reporting period of Alibaba due to the contract with Alibaba, among other reasons. However, the Company performs necessary adjustments for materialtransactions or events arising during the lag period and publicly announced by Alibaba.
2
Alibaba Partnership is not an affiliate of Alibaba.

4SoftBank Group Corp. Consolidated Financial Report
For the six-month period ended September 30, 2017contract 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 “7. 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 SVF
Changes in third-party interests in SVF increased ¥77,157 million (negative impact on income; not recorded in the same
period of the previous fiscal year). Of the third-party interests in SVF presented in Condensed Interim Consolidated Statement of Financial Position, the amount of fluctuations arising from SVF’s business activities was recorded as changes inthird-party interests in SVF.
(k) Other Non-operating Income and Loss
Other non-operating income was ¥48,736 million compared to a loss of ¥22,585 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

Six months ended September 30
2016
2017
74,741
37,488Gain (loss) from financial
instruments at FVTPL(58,140)

10,207

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, during the period
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 amount on a consolidated basis

Note: See “15. 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.

(l) Income before Income Tax
As a result of (d) to (k), income before income tax decreased by ¥440,023 million (66.8%) year on year to ¥219,021 million.

(m) Income Taxes
Income taxes were ¥75,279 million, a decrease of ¥342,135 million (82.0%) year on year. The effective income tax rate forthe period was 34.4%, compared to the statutory income tax rate of 31.69%. For operating income from income before
income tax from SVF, tax effects are recognized, when necessary, in accordance with the rules of each country/region
where the entities comprising SVF are based.
In the same period of the previous fiscal year, the Company recorded deferred tax liabilities of ¥752,203 million on its
expected taxable income for the fiscal year ending March 2018 in relation to a transaction for the sale of a portion of
Alibaba shares (including intragroup transactions). At the same time, the Company reversed deferred tax liabilities of¥374,802 million previously recorded for temporary differences in the investment in Alibaba. The deferred tax liability of¥752,203 million was reversed at the previous fiscal year-end, as taxation was no longer expected for the fiscal year ending

5

SoftBank Group Corp. Consolidated Financial Report
For the six-month period ended September 30, 2017

March 2018.
(n) Net Income from Continuing Operations
As a result of (l) and (m), net income from continuing operations decreased by ¥97,888 million (40.5%) year on year to¥143,742 million.

(Discontinued Operations)(o) Net Income from Discontinued Operations
Net income from discontinued operations was zero (income of ¥558,585 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¥530,339 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 decreased by ¥656,473 million (82.0%) year on year to ¥143,742 million.

(q) Net Income Attributable to Owners of the Parent
After deducting net income attributable to non-controlling interests such as those of Yahoo Japan Corporation and Sprint
from (p), net income attributable to owners of the parent decreased by ¥662,894 million (86.6%) year on year to ¥102,622
million.

(r) Comprehensive Income
Comprehensive income increased by ¥444,628 million year on year to ¥514,591 million. Of this, comprehensive income
attributable to owners of the parent increased by ¥405,669 million to ¥473,011 million.

6

SoftBank Group Corp. Consolidated Financial Report
For the six-month period ended September 30, 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 SVF. The Company established the SVF 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

SVF· Investment activities by SoftBank Vision Fund

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

· Fukuoka SoftBank HAWKS-related businesses

Fukuoka SoftBank HAWKS Corp.

Segments
Reportable segments

Other

Note: Income and adjusted EBITDA of reportable segments are calculated as follows:
Segments excluding SVF
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
SVF segment
Segment income = gain and loss from investments at SVF (realized gain and loss on sales of investments + unrealized gain and loss
on valuation of investments + interest and dividend income from investments) - operating expenses (selling, general and administrative 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/.

7

SoftBank Group Corp. Consolidated Financial Report
For the six-month period ended September 30, 2017(a) Domestic Telecommunications Segment
1.
2.

3.

Upfront investments conducted; majorly focusing on the Home Bundle Discount Hikari Set, Giga Monster, and collaboration with Yahoo Japan.
Sales and income declined yoy due to increased upfront investments (net sales -1.6% yoy; segment income -6.9% yoy); smartphone and SoftBank Hikari fiber-optic service subscribers steadily grew fromthe previous fiscal year-end.
Forecasting free cash flow to be over ¥500 billion for the full fiscal year.
(Millions of yen)Six months ended September 30
2016
2017

ChangeChange %1,554,566

1,528,960(25,606)(1.6%)

Segment income

465,933

433,968(31,965)(6.9%)

Depreciation and amortization

225,405

225,693288

0.1%

Adjusted EBITDA

691,338

659,661(31,677)(4.6%)

Capital expenditures (acceptancebasis)

106,190

126,380

20,19019.0%

Free cash flow

326,005

334,356

8,351

2.6%

Net sales

OVERVIEW
Even as Japan’s telecommunications market approaches maturity, to achieve medium- to long-term growth, the domestic
telecommunications business particularly focus on the expansion of smartphone subscribers to strengthen the foundation
for future growth, while aiming to generating a stable free cash flow.
Specifically, the Company continues to focus on the acquisition of new smartphone subscribers and the maintenanceof existing ones through various upfront investments. The Company is aggressively promoting the sales expansion ofsmartphones under Y!mobile, its mobile communications service sister brand, in the enlarging low-cost smartphonemarket. Under the SoftBank brand, the Company offers 20 GB Data Flat-rate plan, known as “Giga Monster,” and 50
GB Data Flat-rate plan, known as “Ultra Giga Monster,” and has also introduced a Half Price Support3 program that
effectively enables customers to purchase high-end smartphones at half-price. The Company is also promoting the Home
Bundle Discount Hikari Set, which offers a discount on communication charges of mobile communications services, tocustomers subscribing to both mobile and broadband services such as SoftBank Hikari. Furthermore, the Company isstriving to differentiate itself from other mobile operators and increase the value proposition by collaborating with Yahoo
Japan Corporation to expand services for smartphone customers, mainly in e-commerce.

3

A service that enables customers to purchase eligible smartphones in 48 monthly installments, with the remaining monthly payments waived if thecustomer trades in their used handset to upgrade to a designated new model after 24 monthly installments

8SoftBank Group Corp. Consolidated Financial Report
For the six-month period ended September 30, 2017

FINANCIAL RESULTS(Millions of yen)Six months ended September 30
2016
2017
Telecom service revenue

ChangeChange %1,215,251

1,203,851(11,400)(0.9%)

Mobile communications

958,158

913,211(44,947)(4.7%)

4

Telecom

842,117801,037(41,080)(4.9%)

5

116,041

112,174(3,867)(3.3%)

123,852
133,241

157,326
133,31433,474
73

27.0%
0.1%

339,315

325,109(14,206)(4.2%)

1,554,566

1,528,960(25,606)(1.6%)

Service

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

Net sales decreased by ¥25,606 million (1.6%) year on year to ¥1,528,960 million. Of this, telecom service revenue
decreased by ¥11,400 million (0.9%) to ¥1,203,851 million and product and other sales decreased by ¥14,206 million(4.2%) to ¥325,109 million.
Telecom service revenue decreased due to a ¥44,947 million (4.7%) year-on-year decrease in mobile communications
revenue, reflecting an increase in the total amount of discounts (negative impact on revenue) associated with the growthin the cumulative number of applications of the Home Bundle Discount Hikari Set, as well as to decreases in mobile
data communications device and PHS subscribers. Broadband revenue increased by ¥33,474 million (27.0%), in linewith subscriber growth for the SoftBank Hikari fiber-optic service.
Product and other sales decreased mainly due to a year-on-year decline in the number of high-end smartphone shipments for September.

Segment income decreased by ¥31,965 million (6.9%) year on year to ¥433,968 million. This was due to thedecrease in net sales, as well as to an increase in operating expenses (cost of sales and selling, general and administrative
expenses) of ¥6,359 million (0.6%) year on year.
Main year-on-year fluctuations in operating expenses were: an increase of ¥16,108 million (13.1%) in telecommunications network charges caused by the growth in the number of SoftBank Hikari subscribers associated with the sales
expansion in the Home Bundle Discount Hikari Set, an increase of ¥5,100 million (7.5%) in sales promotion expenses
and advertising expenses as a result of focused efforts on expanding sales of SoftBank Hikari fiber-optic services andY!mobile smartphones, an increase of ¥4,952 million (74.3%) in expenses related to Yahoo! Premium membership service offerings to smartphone customers,6 as well as optional services for SoftBank Hikari, and an increase of ¥7,356
million (6.0%) in outsourcing expenses and labor costs. On the other hand, cost of products decreased by ¥21,608
million (8.7%) year on year due to a decrease in shipments of phones. Sales commission fees also decreased by ¥8,573
million (5.6%), due to a decline in the average cost of sales commission fees for smartphones.

4

Telecom revenue of mobile communications services, etc., under the SoftBank and Y!mobile brands
Device warranty service revenue, content-related revenues, advertising revenues, etc.
6
An offering that allows smartphone subscribers an unlimited use of special offers without additional charges under Yahoo! Premium membershipservice, which is originally provided at monthly charge of 462 yen by Yahoo Japan Corporation.
5

9

SoftBank Group Corp. Consolidated Financial Report
For the six-month period ended September 30, 2017

Adjusted EBITDA decreased by ¥31,677 million (4.6%) year on year to ¥659,661 million.
Capital expenditures (acceptance basis) increased by ¥20,190 million (19.0%) to ¥126,380 million, mainly due to the
expansion of service areas and improvement of quality for LTE network.
Free cash flow increased by ¥8,351 million (2.6%) year on year to ¥334,356 million, due to the decrease of capital
expenditures on a cash basis resulting from differences in the timing of recognition between acceptance and payment.

Forecast for the Fiscal Year Ending March 2018
For the fiscal year ending March 2018, segment income may decrease up to 7% year on year due to the impact of
medium-term growth measures such as the Home Bundle Discount Hikari Set, Giga Monster, Half Price Support program, and the strengthening collaboration with Yahoo Japan Corporation. Capital expenditure (acceptance basis) is projected to be ¥392.5 billion (increase by 22.4% year on year).
Free cash flow is projected to be over ¥500 billion. Decrease in adjusted EBITDA and an increase in working capital
associated with the expansion of smartphone sales will adversely affect free cash flow generation, together with anincrease in investments for new businesses, while capital expenditure is expected to decrease on a cash basis due todifferences in the timing of recognition between acceptance and payment.

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

March 31, 2017

September 30, 2017

Change32,40032,784

384

Cumulative subscribers

Cumulative subscribers increased versus the previous fiscal year-end, as smartphones net additions of 808,0008 offset
net losses of feature phones and mobile data communications devices. In smartphones, the number of Y!mobile subscribers continued to grow steadily, while SoftBank subscribers also grew due to a success of a promotion encouraging
feature phone users to switch to smartphones. Adversely, demand for mobile data communications devices continued to
decline due to the impact of Giga Monster.
Cumulative subscribers at the end of the second quarter included 105,000 subscribers to Wireless Home Phone, a new
home-phone voice calling service using the mobile network, launched in July 2017.

Home Bundle Discount Hikari Set Applications(Thousands)

March 31, 2017

September 30, 2017

ChangeMobile communications service

6,030

7,135

1,106

Broadband service

2,904

3,434

529

7

Starting from the second quarter, 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.

10SoftBank Group Corp. Consolidated Financial Report
For the six-month period ended September 30, 2017

Number of Units Sold (Main Subscribers)(Thousands)

Six months ended September 30
2016
2017

ChangeNew subscriptions

2,277

2,264

(13)

Device upgrades

2,627

2,579

(49)

Number of units sold

4,904

4,842

(62)

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 due to the reasons described above.

ARPU (Main Subscribers)(Yen)

Three months ended September 30
2016
2017

ChangeTelecom ARPU

4,020

3,790

(220)

Service ARPU

560

550

(10)

Total ARPU

4,570

4,340

(230)

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 applications in the cumulative
subscriber base also lowered total ARPU, by increasing the discount amount in telecom ARPU.

Churn Rate (Main Subscribers)
Three months ended September 30
2016
2017

ChangePhone churn rate

0.78%

0.74%

0.04 pp improvement

Churn rate

1.06%

1.01%

0.05 pp improvement

The phone churn rate improved year on year. This mainly reflected a decrease in cancellations for feature phones following a promotion encouraging feature phone users to switch to smartphones. This also improved the overall churnrate, together with a decline in cancellations for mobile data communications devices.

Broadband Service
Subscribers(Thousands)

March 31, 2017

September 30, 2017

Change

SoftBank Hikari

3,592

4,362

770

Yahoo! BB hikari with FLET’S

1,385

1,191

(194)

Yahoo! BB ADSL

1,168

1,084

(84)

Cumulative subscribers

6,145

6,636

491

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.

11SoftBank Group Corp. Consolidated Financial Report
For the six-month period ended September 30, 2017(b) Sprint Segment

1.
2.
3.

Positive postpaid phone net additions for the ninth consecutive quarter, with a brisk increase incustomer acquisitions.
Segment income significantly increased yoy, with progress in cost reductions and one-time gains
Adjusted free cash flow decreased, with increased payments for the acquisition of telecom equipment; forecasting to be neutral for the full fiscal year.

(Millions of yen)Six months ended September 30
2016
2017
Net sales

Change %1,722,537

1,793,327

70,7904.1%

104,565

202,176

97,611

93.3%

Segment income
Depreciation and amortization

420,051

463,991

43,94010.5%

9

Other adjustments(7,692)(37,136)(29,444)-

Adjusted EBITDA

516,924

629,031

112,107

21.7%

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

16,25916,084

ሺ175)

ሺ1.1%)(15,118)(14,415)

703

4.7%

(150)

144

294

-

354

479

125

35.3%

Income (loss) on contract termination

(113)

5

118

-

Loss on disposal of property, plant and equipment

(231)

ሺ399)

ሺ168)

-

Others

(160)

59

219

-

Segment income

991

1,813

822

82.9%

Other operating income (loss)
Gain from spectrum license exchanges

Depreciation and amortization

9

Change

3,964

4,162

198

5.0%

9

Other adjustments

(81)

ሺ333)

ሺ252)

-

Adjusted EBITDA

4,874

5,642

768

15.8%

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

1,706

2,908

1,202

70.5%

Telecommunications network equipment

943

1,803

860

91.2%

Leased devices

763

1,105

342

44.8%

Adjusted free cash flow

1,173

659

(514)

(43.8%)(Millions of U.S. dollars)Primary components include non-recurring income and loss, such as gain from spectrum license exchanges and gain and loss on contract termination,
among items included in other operating income and loss.

12SoftBank Group Corp. Consolidated Financial Report
For the six-month period ended September 30, 2017

OVERVIEW
Sprint continued its effort to return to a growth trajectory by increasing net sales together with promoting large-scalecost reductions. To expand net sales, Sprint continues its effort to increase the number of postpaid phone subscribers,
which are the largest source of revenue and profit, by making full use of its ample spectrum holdings in ongoing improvements to network quality and value proposition. Sprint expects to continue progress in cost reductions for the fiscal
year ending March 2018 by increasing operational efficiency.
FINANCIAL RESULTS
Results in U.S. dollars
Net sales decreased by $175 million (1.1%) year on year to $16,084 million. An increase in device revenue, which
was driven by increases of used devices sales to third parties and mobile handset lease revenues, was outweighed by adecline in telecom service revenue resulting from the further penetration of lower rate plans and a change in the device
insurance service.

Segment income increased by $822 million (82.9%) year on year to $1,813 million. Operating expenses (cost of
sales and selling, general and administrative expenses) decreased by $703 million (4.7%) year on year due to continuous
cost reductions, and other operating loss recorded in the same period of the previous fiscal year improved by $294
million in a positive turnaround, more than offsetting the decrease in net sales.
Main year-on-year fluctuations in operating expenses were: an increase of $198 million (5.0%) in depreciation andamortization associated with the increase of leased device assets. On the other hand, cost of products decreased by $167
million (5.3%) and other expenses decreased by $734 million (9.2%) mainly associated with the device insurance program and network related expenses. The decrease in cost of products was attributable to lower mix of installment billing
sales of mobile handsets and elimination of mobile handset lease expenses associated with the termination of mobile
device sales and leaseback transactions. This was partially offset by the increase in the cost of handsets associated withsales of used devices to third parties.
Other operating income and loss improved by $294 million year on year, due to an increase in gain from spectrum
license exchanges and a decrease of loss on contract termination, despite recording a loss of $181 million on disposalof property, plant and equipment due to changes of network plans.

Adjusted EBITDA increased by $768 million (15.8%) year on year to $5,642 million.
Adjusted free cash flow declined by $514 million (43.8%) year on year to $659 million (disclosed by Sprint,
U.S. GAAP). An increase in expenditure for acquisition of telecommunications network equipment and leased devices,
together with lower net proceeds of financings related to devices and receivables (adjustments) exceeded an increase in
net cash provided by operating activities.
Results in yen
In yen terms, net sales increased by ¥70,790 million (4.1%) year on year to ¥1,793,327 million, segment income increased by ¥97,611 million (93.3%) year on year to ¥202,176 million, and adjusted EBITDA increased by ¥112,107
million (21.7%) year on year to ¥629,031 million, reflecting the weaker yen against the U.S. dollar compared to thesame period of the previous fiscal year.

13SoftBank Group Corp. Consolidated Financial Report
For the six-month period ended September 30, 2017

OPERATIONS
Cumulative Subscribers10(Thousands)
March 31, 2017

September 30, 2017

ChangeChange excl.
special factors11

31,576

31,686110

129

26,07926,432353

367

Prepaid

8,688

8,765

77

130

Wholesale and affiliate

13,375

13,576

201

180

Cumulative subscribers

53,63954,027388

439

Postpaid(incl.) Phone

Net Additions (Losses)10(Thousands)

Three months ended September 30
2016
2017
Postpaid

Change

344
347

168

(176)

279

(68)

Prepaid

(449)

95

544

Wholesale and affiliate

704

115

(589)

599

378

(221)

(incl.) Phone

Total
11

Note: Excluding special factors

Postpaid phone subscriber net additions were subdued at 279,000. New acquisitions steadily increased, driven by various
sales promotion measures including unlimited data plans, but were partially offset by an increase in deactivations. Furthermore, prepaid subscribers marked net additions again for a third consecutive quarter.
Churn Rate (Postpaid)12

Postpaid phone churn rate
Postpaid churn rate

Three months ended September 30
2016
2017
1.37%
1.59%
1.52%
1.72%

Change0.22 pp deterioration
0.20 pp deterioration

The postpaid phone churn rate deteriorated due to an increase in customers rolling off device commitments and othercarriers introducing unlimited data plans in February 2017, following Sprint.

10

Sprint is no longer reporting Lifeline program subscribers due to recent regulatory changes resulting in tighter program restrictions. Sprint has excluded them from the number of prepaid and wholesale and affiliate subscribers from the first quarter and therefore they do not match the Company’s
prior disclosures. See the “Data Sheet” on the Company’s website for details. 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
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 second quarter, one of the prepaid data plans was discontinued. Accordingly, 49,000 prepaid subscribers for the plan were excluded from the prepaid subscriber base.
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 to net additions, but resulted in lower gross additions and lower deactivations by an equal amount in the quarter.

14

SoftBank Group Corp. Consolidated Financial Report
For the six-month period ended September 30, 2017

ABPU (Postpaid Phone)(U.S. dollars)

Three months ended September 30
2016
2017

ChangeARPU
Average equipment billings per user

58.03
13.66

52.34
16.61

(5.69)
2.95

Postpaid phone ABPU

71.69

68.95

(2.74)

Postpaid phone ABPU was relatively flat year on year, when adjusting for the dilutive impact of a change in the device
insurance service in January 2017.
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)Six months ended September 30
2016
2017

ChangeChange %Net sales

409,497425,439

15,942

3.9%

Segment income

99,371

92,690(6,681)(6.7%)

Depreciation and amortization
Gain from remeasurement
relating to business combination

19,154

20,813

1,659

8.7%

(19)

-

19

-

Other adjustments-(4,929)(4,929)-Adjusted EBITDA

118,506

108,574(9,932)(8.4%)

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

(d) Distribution Segment(Millions of yen)

Net sales
Segment income

Six months ended September 30
2016
2017

ChangeChange %626,356

644,852

18,4963.0%

14,3057,363

ሺ6,942)

ሺ48.5%)

Depreciation and amortization

3,557

3,491

ሺ66)

ሺ1.9%)

Adjusted EBITDA

17,862

10,854

ሺ7,008)

ሺ39.2%)

15

SoftBank Group Corp. Consolidated Financial Report
For the six-month period ended September 30, 2017(e) Arm Segment(Millions of yen)Six months ended September 30
2016
2017

ChangeChange %Net sales

14,356

93,676

79,320552.5%

Segment loss

(5,123)(14,794)(9,671)-

Depreciation and amortization
Gain from remeasurement
relating to business combination

4,476

30,28525,809576.6%(18,168)-

18,168-Other adjustments

25,466-(25,466)-

Adjusted EBITDA

6,651

15,4918,840

132.9%

Note: The Arm segment reflects the results of operations of Arm since September 6, 2016. Retrospective adjustments have been madeto the figures for the six months ended September 30, 2016 due to the completion of purchase price allocation related to the acquisitionof 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.

FINANCIAL RESULTS
Net sales increased by ¥79,320 million (552.5%) year on year to ¥93,676 million. The main factor behind the increase
was that in the same period of the previous fiscal year Arm’s results were reflected only from September 6 to 30, 2016,
while its results are reflected for the full six months in the period.
Segment loss increased by ¥9,671 million year on year from ¥5,123 million in the same period of the previous fiscal
year to ¥14,794 million. During the period, Arm increased the number of its employees, mainly engineers, by a net 686
people, up 14.1% 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 ¥26,796 million in amortization expenses recorded for intangible assets recognized in the purchase price allocation for the Arm acquisition.
Adjusted EBITDA was ¥15,491 million, an increase of ¥8,840 million (132.9%) year on year.

16SoftBank Group Corp. Consolidated Financial Report
For the six-month period ended September 30, 2017

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)

Fiscal year ended March 2017
Q1
Pro forma

Q2
Pro forma Post-acquisition
Sep. 6 -30, 2016

Full year
Pro forma

Fiscal year ending
March 2018
Q1
Q2

Technology
licensing

161

89

38

601

149

123

Technology
royalties

228

240

82

974

250

271

Software andservices

30

24

20

114

29

28

Total net sales

419

353

140

1,689

428

422

Net sales for the second quarter were $422 million. Technology licensing revenue reported in the second quarter was
down 17% from the prior quarter to $123 million. On a pro forma basis, technology licensing revenue was up 38% year
on year. This was primarily caused by lower licensing activity in the same period of the previous fiscal year due touncertainty 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 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.

OPERATIONS
Licensing
Licenses signed
July 1 to September 30, 2017

Cumulative number oflicenses signed
September 30, 2017Classic (Arm7, Arm9, Arm11)-

500

Cortex-A

7

304

Cortex-R

487

Cortex-M

11

456

Mali

4

161

Number of processor licenses signed

26

1,508

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

During the second quarter, Arm signed 26 processor licenses, reflecting the ongoing demand for Arm’s latest technology.
Of the customers signing licenses, 5 were new customers purchasing their very first Arm processor license. The customers who signed licenses with Arm in the second quarter intend to use Arm technology in a very broad range of end
markets, from medical and automotive electronics to smartphones and digital TVs.

17

SoftBank Group Corp. Consolidated Financial Report
For the six-month period ended September 30, 2017

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 June 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 quarter the chips
are shipped, based on estimates. This section is prepared solely for reference purposes to facilitate understanding ofArm’s operations and includes information prior to acquisition by the Company on September 5, 2016.

Apr. 1 toJun. 30

Jul. 1 to
Sep. 30

2016
Oct. 1 to
Dec. 31

Jan. 1 toMar. 312017
Apr. 1 toJun. 30

Royalty units as reported byArm’s licensees

4.0 billion

4.9 billion

5.1 billion

4.7 billion

5.1 billion

Growth rate (year-on-year)

12%

20%

24%

28%

25%

Breakdown byprocessor family
Classic(Arm7, Arm9, Arm11)

24%

23%

19%

17%

18%

Cortex-A

19%

16%

22%

22%

20%

Cortex-R

7%

9%

7%

8%

9%

Cortex-M

50%

52%

52%

53%

53%

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
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 5.1 billion Arm-based chips for the three-month period ended June 30, 2017.
This reflects normal seasonality in terms of growth versus the previous quarter, up 8%, and strong growth of approximately 25% 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.

18

SoftBank Group Corp. Consolidated Financial Report
For the six-month period ended September 30, 2017(f) SVF Segment
OVERVIEWThe Company established the SVF segment as a new reportable segment during the first quarter, following SVF having
completed its first major closing on May 20, 2017 with $93.2 billion in committed capital (the “Initial Closing”). The
SVF segment covers the investment activities of SVF. The purpose of SVF is to invest in companies across a wide rangeof technology sectors. SVF’s investment period is, in principle, five years from its final closing, with a minimum life of
12 years. In addition to the Company, investors in SVF include the Public Investment Fund of the Kingdom of Saudi
Arabia, Mubadala Investment Company of the United Arab Emirates, Apple, Foxconn Technology Group, Qualcomm
Incorporated, and Sharp Corporation or their respective affiliates, collectively the “Limited Partners.” For details of SVF,
see “2. SVF” under “(6) Notes to Condensed Interim Consolidated Financial Statements” in “3. Condensed Interim
Consolidated Financial Statements and Primary Notes.”
The total amount of committed capital as of September 30, 2017 was $97.7 billion, together with the Company’s
additional commitment after the Initial Closing. For details of capital commitment, see “Capital Deployment of SVF.”

Structure of SVF
SVF consists of a fund managed by SVF GP (Jersey) Limited (“Vision Fund”), a fund managed by SB Delta Fund GP(Jersey) Limited (“Delta Fund”), and advisory companies (SB Investment Advisers (UK) Limited (“SBIA”), a whollyowned UK subsidiary of the Company, and US and Japanese advisory companies supporting SBIA) which will provide
investment advice to each general partner. The amount of capital commitment described above is the total amount of
capital commitment in both funds, and the percentages of capital contribution by the Company are different for each
fund.
Each fund consists of the following entities;･ a general partner (“GP”) which is a subsidiary of the Company and･ several limited partnerships managed by the GP.
< Outline of Each Fund >Subsidiary

SoftBank Group Corp.
Contribution
Wholly-owned
subsidiary

Wholly-owned
subsidiary

Investment
adviceGP

Advisory Company
Management

Contribution

Limited Partnerships
Investment

Investment Portfolio

19

Third-party Investors

SoftBank Group Corp. Consolidated Financial Report
For the six-month period ended September 30, 2017

FINANCIAL RESULTS(Millions of Yen)

Six months ended September 30
2016
2017
Gain and loss on investments at SVF
Unrealized gain and loss on valuation of investments-

194,336

Operating expenses-(8,098)Segment income-

186,238

Unrealized loss (gain) on valuation of investments-(194,336)

Adjusted EBITDA-(8,098)

Note: The segment’s results are calculated as follows:
Segment income = gain and loss on investments at SVF (realized gain and loss on sales of investments + unrealized gain and loss on
valuation of investments + interest and dividend income from investments) – operating expenses (selling, general and administrative
expenses)
Adjusted EBITDA = segment income (loss) + depreciation and amortization ± unrealized gain and loss on valuation of investments± other adjustments

Operating income and loss from the segment includes gain and loss on investments at SVF (realized gain and loss on
sales of investments, unrealized gain and loss on valuation of investments, interest and dividend income from investments) and operating expenses.13 Investments of SVF, are in principle treated as financial assets at FVTPL. They aremeasured at fair value at the end of each quarter, and the change during the reporting period is recognized in profit orloss. Intercompany transactions, such as management fees and performance fees to the GPs or SBIA paid out from each
limited partnership, are eliminated at consolidation. The results of operations, assets, and liabilities of SVF after eliminations are recorded in the Company's consolidated financial statements.
Segment income for the period was ¥186,238 million, due to recording of unrealized gain on valuation of investmentsof ¥194,336 million mainly in relation to an increase in fair value of NVIDIA shares as a result of its market price riseduring the period.
Adjusted EBITDA was negative ¥8,098 million. Adjusted EBITDA is calculated by deducting unrealized gain andloss on valuation of investments from segment income.

13

Include incorporation expenses of entities that comprise SVF, investment research expenses arising from the GPs and advisory companies, and administrative expenses arising from each entity

20SoftBank Group Corp. Consolidated Financial Report
For the six-month period ended September 30, 2017

Investments of SVF
The following are the investments acquired by SVF or agreed to be transferred to SVF from the Company as of September 30, 2017. These investments exclude those subject to regulatory approval.
(Billions of U.S. dollars)

Investments
acquired by SVF

Acquisition Fair value
cost
14.8
16.6

Investments agreed to
be transferred to SVF
from the Company

3.6

Total

18.4

3.6

Main investees
Investees (in alphabetical order)
Businesses
Arm Holdings plc
Semiconductor technology(a part of the Company’s holding)*1
designer
Fanatics Holdings, Inc.
Online retailer of licensed(Fanatics)
sports merchandise
NVIDIA Corporation
GPU developer
Roivant Sciences Ltd.
Biopharmaceutical drug
(Roivant)developer
Xiaoju Kuaizhi Inc. (DiDi) *2
Ridesharing services
OSIsoft LLC (OSIsoft）

Industrial IoT solutions

WeWork Companies Inc.
(WeWork）

Co-working space services

20.2

Capital Deployment of SVF
As of September 30, 2017
(Billions of U.S. dollars)Committed capital as of the Initial Closing
Additional committed capital
Total committed capital

SVF
93.2
4.5
97.7

The Company
28.0
4.5
32.5
In-kind contribution of
Arm shares *1

Third-party investors
65.2
65.2

8.2
9.6

Transferred economic
interest of Arm shares *1
Investments in DiDi *2

Total contribution from Limited Partners
Remaining committed capital
Proceeds
Contribution from Limited Partners
Proceeds from short-term interest-bearing debt
Total
Payments
Acquisition of investment
Total

17.0
80.7

3.8
3.6
7.4
25.1

9.6
55.6

17.0
2.2
19.2
(14.8)(14.8)

Notes:
1. Out of its total committed capital to SVF, the Company will contribute a part of its Arm shareholding to SVF through an in-kind contribution insatisfaction of approximately $8.2 billion. As of the end of the second quarter, the Company has pledged $4.1 billion of Arm shares in favor of SVF.
Of this, economic interests equivalent to $3.8 billion were transferred to SVF. The difference between these two amounts arose from the differencein the timings of capital contribution from investors excluding the Company (“Third-party Investors”), which is expected to be dissolved as SVF
receives contributions further. For details of the Company’s contribution to SVF through Arm shares, see “(a) Contribution from the Company to
SVF (Transfer of a portion of shares of Arm)” under “(2) Significant Accounting Policies” in “c. Contribution from Limited Partners to SVF” in “2.
SVF” in “(6) Notes to Condensed Interim Consolidated Financial Statements” in “3. Condensed Interim Consolidated Financial Statements andPrimary Notes.”
2. The Company acquired investment securities in DiDi and then transferred them to SVF. The value of this transfer was offset against the amountof the Company's capital obligation to SVF. The investment in DiDi is from Delta Fund.

21

SoftBank Group Corp. Consolidated Financial Report
For the six-month period ended September 30, 2017(2) Overview of Financial Position(Millions of yen)March 31, 2017

September 30, 2017

ChangeChange %Total assets

24,634,212

27,973,483

3,339,271

13.6%

Total liabilities

20,164,482

22,505,110

2,340,628

11.6%

Total equity

4,469,730

5,468,373

998,643

22.3%

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

¥112.19¥112.73

¥0.54

0.5%

GBP / JPY

¥140.08¥151.37¥11.298.1%(a) Current Assets(Millions of yen)March 31, 2017

September 30, 2017

ChangeCash and cash equivalents

2,183,102

3,462,738

1,279,636

Trade and other receivables

2,121,619

2,138,920

17,301Other financial assets

794,689

539,860(254,829)

Inventories

341,344

339,648(1,696)

Other current assets

283,221281,662(1,559)Total current assets

5,723,975

6,762,828

1,038,853

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.

22SoftBank Group Corp. Consolidated Financial Report
For the six-month period ended September 30, 2017(b) Non-current Assets(Millions of yen)March 31, 2017

September 30, 2017

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

3,906,498
4,392,939
2,908,705(70,756)
217,475
216,887

6,946,639

6,992,269

45,6301,670,799

1,962,664

291,865

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

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

1,853,055
936,130
444,611533,720
188,769

1,853,055(170,279)(1,247)
128,726
5,949

Total non-current assets

18,910,237

21,210,655

2,300,418

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

Primary components of the change
Components

Primary changes from the previous fiscal year-end

Property, plant and equipment

Telecommunications network equipment of Sprint and SoftBank Corp. decreased
due to depreciation exceeding the amount of newly-acquired assets.

Goodwill

Goodwill for Arm increased due to the weaker yen against the pound.

Investments accounted forusing the equity method

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

Investments from SVF
accounted for using FVTPL

SVF made investments in DiDi, Roivant, and Fanatics, and agreed to acquire
shares of WeWork and OSIsoft from the Company. NVIDIA shares were reclassified from “Investment securities” upon transfer to SVF from the Company.

Investment securities

NVIDIA shares were reclassified as “Investments from SVF accounted for using
FVTPL.” On the other hand, the Company newly acquired ¥197,352 million in
investment securities with a plan to transfer around half of them to SVF.

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.

23

SoftBank Group Corp. Consolidated Financial Report
For the six-month period ended September 30, 2017(c) Current Liabilities(Millions of yen)March 31, 2017

September 30, 2017

Change2,694,093
1,139,734
505,8024,355,422
2,674,717
737,573

1,661,329
1,534,983
231,771

Current portion of long-term borrowings

433,983

1,427,824

993,841

Current portion of corporate bonds

119,947

409,320

289,373

80,002536,897

100,000
438,622

19,998(98,275)

307,178

357,853

50,675219,365
10,354-

71,232
9,537
244,522(148,133)(817)
244,522

1,017,462

244,522997,561

244,522(19,901)

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

118,875
404,966
446,980
26,7401,610,697
15,987
153,390
50,844574,091(42,987)
17,61715,458(9,989)3,244
2,286(102,828)(5,518)(25,005)

Total current liabilities

5,226,923

6,760,431

1,533,508

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

OthersSprintCurrent portion of long-term borrowings
Current portion of corporate bonds
OthersSVF
Short-term borrowings
OthersPrimary components of the change
Components

Primary changes from the previous fiscal year-end

Interest-bearing debt

SoftBank Group Corp.:
The current portion of long-term borrowings increased due to the transfer from non-current
liabilities of a bridge loan of ¥1 trillion related to the acquisition of Arm. The current portionof long-term bonds also increased due to transfers from non-current liabilities, and short-termborrowings increased through the use of a commitment line.
The above bridge loan of ¥1 trillion related to the acquisition of Arm is to be refinanced in
November 2017 as long-term funds.
Sprint:Current portion of long-term borrowings increased, mainly due to transfers from non-current
liabilities as the repayment became due within one year. Meanwhile, the current portion of
corporate bonds decreased due to redemptions of corporate bonds.
SVF:
Short-term borrowings were conducted, 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.

24SoftBank Group Corp. Consolidated Financial Report
For the six-month period ended September 30, 2017(d) Non-current Liabilities(Millions of yen)March 31, 2017

September 30, 2017

ChangeInterest-bearing debt
SoftBank Group Corp.
Long-term borrowings
Corporate bonds
OthersSprint12,164,277
6,378,194
2,133,705
4,244,488
1
4,024,390

11,267,395
5,491,171
933,7454,557,426
3,858,981(896,882)(887,023)(1,199,960)
312,938(1)(165,409)

Long-term borrowings
Corporate bonds
OthersOthers

1,044,116
2,954,300
25,974
1,761,693

1,017,110
2,819,317
22,554
1,917,243(27,006)(134,983)(3,420)155,550

Long-term borrowings
Financial liabilities relating to sale of sharesby variable prepaid forward contract
Lease obligations
OthersThird-party interests in SVF
Derivative financial liabilities
Other financial liabilities
Defined benefit liabilities
Provisions
Deferred tax liabilities
Other non-current liabilities

199,804

356,493

156,689

715,448
787,124
59,317254,146
33,083
108,172
138,730
1,941,380
297,771724,613786,339
49,798
1,158,643
731,320
23,817
107,394
136,6122,029,906
289,592

9,165
(785)
(9,519)1,158,643
477,174(9,266)(778)(2,118)88,526(8,179)Total non-current liabilities

14,937,559

15,744,679

807,120

Primary components of the change
Components

Primary changes from the previous fiscal year-end

Interest-bearing debt

SoftBank Group Corp.:
Long-term borrowings decreased due to the transfer to current liabilities of thebridge loan for the Arm acquisition. Meanwhile, corporate bonds increased due tothe issuance of foreign currency-denominated straight corporate bonds of ¥676,558
million. Long-term borrowings are expected to increase due to the aforementioned
refinancing.
Sprint:Corporate bonds decreased due to early redemptions of certain corporate bonds.

Third-party interests in SVF

An amount of equity attributable to the third-party investors in SVF was recorded.

Derivative financial liabilities

Derivative liabilities increased by ¥514,735 million due to recording derivative loss
in relation to a collar transaction included in a variable prepaid forward contract for
Alibaba shares.

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 “7. Interest-bearing debt” in “(6) Notes to Condensed Interim Consolidated Financial Statements” in “3. Condensed Interim Consolidated Financial Statements and Primary Notes.”

25

SoftBank Group Corp. Consolidated Financial Report
For the six-month period ended September 30, 2017(e) Equity(Millions of yen)March 31, 2017

September 30, 2017

Change3,586,352

4,566,164

979,812883,378

902,20918,831

4,469,730

5,468,373

998,643

14.6%

16.3%

1.7 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

September 30, 2017

ChangeCommon stock

238,772

238,772-

Capital surplus

245,706

279,027

33,321-496,876

496,876

Retained earnings

2,958,355

3,036,287

77,932

Treasury stock(67,727)(66,433)

1,294

Accumulated other comprehensive income

211,246

581,635

370,389

Available-for-sale financial assets

11,98360,614

48,631

Cash flow hedges
Exchange differences on translating foreign
operations(44,877)(57,011)(12,134)

244,140

578,032

333,892

Total equity attributable to owners of the parent

3,586,352

4,566,164

979,812

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 with IFRSs.

Retained earnings

Retained earnings increased as the Company recorded net income attributableto owners of the parent of ¥102,622 million.

Accumulated other comprehensive income

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

26

SoftBank Group Corp. Consolidated Financial Report
For the six-month period ended September 30, 2017(3) Overview of Cash Flows(Millions of yen)Six months ended September 30
2016
2017

ChangeCash flows from operating activities

1,015,601

748,283(267,318)

Cash flows from investing activities(3,163,397)(1,676,671)

1,486,726

Cash flows from financing activities

2,420,036

2,191,780(228,256)(a) Cash Flows from Operating Activities
Net cash provided by operating activities decreased by ¥267,318 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 ¥101,730
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¥(517,705) million

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

Payments for acquisition of investments¥(197,352) million

The Company acquired investments. Around half of them wereconducted with a plan of transferring them to SVF.

Payments for acquisition of investment by SVF¥(1,253,341) million

This represents the payments for investments acquired by SVF
or agreed to be transferred to SVF from the Company. Thesemainly included investments in DiDi, WeWork, Roivant,OSIsoft, and Fanatics.

Payments for acquisition of marketablesecurities for short-term trading¥(116,552) million

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

Proceeds from sales/redemption of marketablesecurities for short-term trading¥332,875 million
Payments into time deposits¥(103,227) million
Proceeds from withdrawal of time deposits¥331,070 million

27

SoftBank Group Corp. Consolidated Financial Report
For the six-month period ended September 30, 2017(c) Cash Flows from Financing Activities
Primary components of the period
Component
Increases in short-term interest-bearing debt, net¥449,851 million(incl.) SVF ¥241,594 million

Primary details
SoftBank Group Corp. procured funds to enhance its cash on
hand.
SVF conducted borrowings to increase capital efficiency in investments.

Proceeds from long-term interest-bearing debt
¥1,529,137 million
Proceeds from long-term borrowings¥607,942 million

SoftBank Corp. and Sprint made borrowings through securitization of receivables.

Proceeds from issuance of bonds¥665,804 million

SoftBank Group Corp. issued foreign currency-denominatedstraight corporate bonds.

Proceeds from sale and leaseback of newly
acquired equipment¥255,391 million

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

Repayment of long-term interest-bearing debt¥(1,286,867) million
Repayment of long-term borrowings¥(632,750) million

SoftBank Corp. and Sprint repaid borrowings made through securitization of receivables. SoftBank Group Corp. also repaid
borrowings.

Redemption of corporate bonds¥(388,938) million

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

Repayment of lease obligations¥(245,725) million

SoftBank Corp. repaid lease obligations for telecommunications network equipment.

Proceeds from contributions from third-party
investors in SVF¥1,067,703 million

SVF received cash contribution 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 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 forecasts of the Domestic Telecommunications segment, see “Forecast for the Fiscal Year Ending March 2018” of“(a) Domestic Telecommunications Segment” under “b. Results by Segment” in “(1) Overview of Results of Operations.”

28

SoftBank Group Corp. Consolidated Financial Report
For the six-month period ended September 30, 2017

2. Notes to Summary Information(1) Significant Changes in Scope of Consolidation for the Six-month Period Ended September 30, 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 six-month period ended September 30, 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.

29

SoftBank Group Corp. Consolidated Financial Report
For the six-month period ended September 30, 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

SVF

SoftBank Vision Fund*

Alibaba

Alibaba Group Holding Limited

Note:* SVF consists of a fund managed by SVF GP (Jersey) Limited (“Vision Fund”), a fund managed by SB Delta Fund GP(Jersey) Limited (“Delta Fund”), and advisory companies (SB Investment Advisers (UK) Limited (“SBIA”), a
wholly-owned UK subsidiary of the Company, and US and Japanese advisory companies supporting SBIA) which will
provide investment advice to each general partner.

30

SoftBank Group Corp. Consolidated Financial Report
For the six-month period ended September 30, 2017

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

As ofMarch 31, 2017

As of
September 30, 2017

AssetsCurrent assets
Cash and cash equivalents
Trade and other receivables
Other financial assets
Inventories
Other current assets
Total current assets

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

3,462,738
2,138,920
539,860
339,648
281,662
6,762,828

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

3,977,254
4,175,464
6,946,639
1,670,799
1,106,409
445,858
404,994
182,820
18,910,237
24,634,212

3,906,498
4,392,939
6,992,269
1,962,664
1,853,055
936,130
444,611533,720
188,769
21,210,655
27,973,483

31

SoftBank Group Corp. Consolidated Financial Report
For the six-month period ended September 30, 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 of
September 30, 2017

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

4,355,422
1,610,697
15,987
153,390
50,844574,091
6,760,431

Total liabilities

12,164,277
254,146
33,083
108,172
138,730
1,941,380
297,771
14,937,559
20,164,482

11,267,395
1,158,643
731,320
23,817
107,394
136,6122,029,906
289,592
15,744,679
22,505,110

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
279,027
496,876
3,036,287(66,433)
581,635
4,566,164
902,2095,468,373
27,973,483

Non-current liabilities
Interest-bearing debt
Third-party interests in SVF
Derivative financial liabilities
Other financial liabilities
Defined benefit liabilities
Provisions
Deferred tax liabilities
Other non-current liabilities
Total non-current liabilities

32

SoftBank Group Corp. Consolidated Financial Report
For the six-month period ended September 30, 2017(2) Condensed Interim Consolidated Statement of Income and Condensed Interim Consolidated Statement ofComprehensive Income
For the six-month period ended September 30
Condensed Interim Consolidated Statement of Income(Millions of yen)Six-month period ended
September 30, 2016*

Six-month period ended
September 30, 2017

4,271,834(2,568,170)
1,703,664

4,411,135(2,554,182)
1,856,953(1,024,086)(1,187,778)

18,187-

Operating income (excluding income from SVF)
Operating income from SVF
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 SVF
Other non-operating income (loss)
Income before income tax
Income taxes
Net income from continuing operations(50,402)647,363
647,363(222,022)
105,174
238,101
83,071(170,058)(22,585)
659,044(417,414)
241,630

19,426688,601
186,238
874,839(243,458)
108,290
1,510
10,942(504,681)(77,157)
48,736
219,021(75,279)
143,742

Discontinued operations
Net income from discontinued operations
Net income

558,585
800,215

143,742

765,516
34,699800,215

102,622
41,120143,742189.24489.85679.09

88.29
88.29

185.58489.60675.18

84.97
84.97

Continuing operations
Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Gain from remeasurement relating to businesscombination
Other operating income (loss)

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

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.

33

SoftBank Group Corp. Consolidated Financial Report
For the six-month period ended September 30, 2017

Condensed Interim Consolidated Statement of Comprehensive Income(Millions of yen)Six-month period ended
September 30, 2016*

Six-month period ended
September 30, 2017

800,215

143,742

6,539(4,687)37,055(11,923)(712,679)

336,176(19,425)9,541(730,252)

370,849(730,252)
69,963

370,849
514,591

67,342
2,621
69,963473,011
41,580514,591

Net income
Other comprehensive income, net of tax
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.

34

SoftBank Group Corp. Consolidated Financial Report
For the six-month period ended September 30, 2017

For the three-month period ended September 30
Condensed Interim Consolidated Statement of Income(Millions of yen)Three-month period ended Three-month period ended
September 30, 2016*
September 30, 2017
Continuing operations
Net sales
Cost of sales
Gross profit

2,145,313(1,300,897)
844,416

2,225,076(1,299,059)
926,017(516,245)(598,417)

18,187-

Operating income (excluding income from SVF)
Operating income from SVF
Operating income
Finance cost
Income on equity method investments
Foreign exchange gain
Derivative loss
Change in third-party interests in SVF
Other non-operating income
Income before income tax
Income taxes
Net income from continuing operations(18,231)
328,127
328,127(109,915)
69,708125,990(191,569)
80,342
302,683(273,345)
29,338(13,043)
314,557
81,009395,566(122,588)
106,656
12,738(247,622)(33,568)
30,271
141,453(28,251)
113,202

Discontinued operations
Net income from discontinued operations
Net income

498,526
527,864

113,202511,359
16,505
527,864

97,101
16,101
113,20212.93
444.58457.51

83.22
83.22

10.14
444.36454.50

80.83
80.83

Selling, general and administrative expenses
Gain from remeasurement relating to businesscombination
Other operating loss

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

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.

35

SoftBank Group Corp. Consolidated Financial Report
For the six-month period ended September 30, 2017

Condensed Interim Consolidated Statement of Comprehensive Income(Millions of yen)Three-month period ended
September 30, 2016*

Three-month period ended
September 30, 2017

527,864

113,202

(9)

-

(9)

-

(8,370)13,86912,733(30,057)(355,709)

182,229(4,613)2,915(354,823)

167,820(354,832)
173,032

167,820
281,022

161,189
11,843173,032

264,757
16,265
281,022

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.

36

SoftBank Group Corp. Consolidated Financial Report
For the six-month period ended September 30, 2017(3) Condensed Interim Consolidated Statement of Changes in Equity
For the six-month period ended September 30, 2016*(Millions of yen)
Equity attributable to owners of the parent
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
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 September 30, 2016

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

Noncontrollinginterests Total equity
891,658 3,505,271

Commonstock
238,772

Capitalsurplus261,234

Retainedearnings
2,166,623--

765,516--

765,516

34,699800,215

-

-

-

-

(698,174)(698,174)(32,078)(730,252)--

765,516-(698,174)

67,342

2,621

69,963--(24,085)--(24,085)(42,623)(66,708)

-

-

(409)

(350,078)-(350,487)-(350,487)

-

-

-

-

-

-

2,218

2,218

-

-

-

-

-

-

(25,156)(25,156)

-

(356)

-

-

-

(356)

3,186

2,830

-

(475)

-

-

-

(475)

-

(475)

-

(15,189)---(15,189)-(15,189)

-

1,074

-

-

-

1,074

5,013

6,087

-

-

-

-

-

-

(2,677)(2,677)-(14,946)(24,494) (350,078)-(389,518)(60,039)(449,557)

238,772

246,288(436,438)

2,291,437

834,240

3,125,677

2,907,645(664,830)

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.

37

SoftBank Group Corp. Consolidated Financial Report
For the six-month period ended September 30, 2017

For the six-month period ended September 30, 2017
(Millions of yen)
Equity attributable to owners of the parent

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

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

Commonstock
238,772

Capitalsurplus245,706

Other equity
instruments-

Retainedearnings
2,958,355

Treasurystock(67,727)---

102,622

-

-

-

-

-

-

-

Accumulated
othercomprehensive
income211,246

Total
3,586,352--

102,622--370,389

370,389-

102,622-370,389

473,011496,876---

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

-

-

-

(726)

1,294

-

568

-

(4,164)

-

-

-

-

(4,164)-(3,256)

-

-

-

-

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

-

2,683

-

-

-

-

2,683

-

-

-

-

-

-

-

-

33,321496,876(24,690)

1,294-

506,801

238,772

279,027

496,876

3,036,287(66,433)

581,635

4,566,164

Noncontrollinginterests
883,378

Total equity
4,469,730

41,120460

143,742
370,849

41,580514,591-

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

-

568

6,372

2,208

-

(3,256)-38,058

3,087

5,770

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

484,052

902,2095,468,373

38

SoftBank Group Corp. Consolidated Financial Report
For the six-month period ended September 30, 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 SVF
Finance cost
Income on equity method investments
Gain on sales of shares of associates
Derivative loss
Change in third-party interests in SVF
Foreign exchange gain and other non-operating (income)and loss
Gain on sales of discontinued operations
Income taxes
Decrease in trade and other receivables
Increase in inventories(Decrease) 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 SVF
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
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 SVF from 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
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 period39

Six-month period ended
September 30, 2016*

Six-month period ended
September 30, 2017

800,215
685,284(18,187)
222,022(105,174)(238,101)
170,058-

143,742
750,507(194,336)
243,458(108,290)(1,510)504,681
77,157(62,578)(59,678)(636,216)
529,706
13,224(151,281)(21,000)(8,890)1,179,082
11,841(249,973)(241,237)
315,888
1,015,601

75,27910,373(183,855)
35,851(65,721)
1,227,658
14,679(239,445)(342,967)
88,358748,283(441,471)(517,705)(130,193)
451,484(3,250,572)
340,888(197,352)(1,253,341)
14,409(4,321)-(126,087)(116,552)

60,768332,875(154,010)
63,28922,507(3,163,397)(103,227)
331,070(162,527)(1,676,671)

616,7702,966,588(729,885)(350,834)(24,060)(41,819)(16,724)
2,420,036(165,991)
106,249
2,569,607
2,675,856

449,851
1,529,137(1,286,867)
1,067,703
496,876(16)(23,981)(29,529)(11,394)
2,191,780
16,244
1,279,636
2,183,102
3,462,738

SoftBank Group Corp. Consolidated Financial Report
For the six-month period ended September 30, 2017

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.

40

SoftBank Group Corp. Consolidated Financial Report
For the six-month period ended September 30, 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 Company has newly adopted accounting policies due to the completion of the first major closing of SVF in May
2017. The details are described in “Note 2. SVF.”

2. SVF(1) Summary of the transaction
a. First major closing
SVF, which is included in the scope of consolidation of the Company, completed its first major closing on May
20, 2017 with $93.2 billion of committed capital (“Initial Closing”). In addition to the Company, investors in
SVF include the Public Investment Fund of the Kingdom of Saudi Arabia, the Mubadala Investment Companyof the United Arab Emirates, Apple, Foxconn Technology Group, Qualcomm Incorporated, and Sharp
Corporation or their respective affiliates, collectively the “Limited Partners.”
The total amount of capital commitment as of September 30, 2017, by addition of the Company’s commitment,
amounts to $97.7 billion. Of this, the Company has committed a maximum of $32.5 billion of capital to SVF,
which includes in-kind contributions. The other Limited Partners (“Third-Party Investors”) have committed amaximum aggregate amount of $65.2 billion.
The Company established “the SVF segment” during the three-month period ended June 30, 2017 as a newreportable segment due to the completion of the Initial Closing. The details are described in “Note 3. Segment
information.”b. Structure of SVF
SVF consists of a fund managed by SVF GP (Jersey) Limited (“Vision Fund”), a fund managed by SB Delta
Fund GP (Jersey) Limited (“Delta Fund”), and advisory companies (SB Investment Advisers (UK) Limited(“SBIA”), a wholly-owned UK subsidiary of the Company, and US and Japanese advisory companies
supporting SBIA) which will provide investment advice to each general partner. The amount of capitalcommitment described above a. is total amount of capital commitment in both funds and the percentages ofcapital contribution by the Company are different for each fund.
Each fund consists of the following entities;･ a general partner (“GP”) which is a subsidiary of the Company; and･ several limited partnerships managed by the GP.

41

SoftBank Group Corp. Consolidated Financial Report
For the six-month period ended September 30, 2017

Subsidiary＜Outline of each fund＞
Contribution

SoftBank Group Corp.
Wholly-owned
subsidiary

Advisory

Wholly-owned
subsidiary

Investment
adviceGP
Contribution

Management

Limited Partnerships

Third-Party
Investors

Investment

Investment Portfolio

The GP will receive investment advice and certain investment execution and other services from SBIA once
SBIA is registered with the UK Financial Conduct Authority. Investment decisions for the various entities
comprising SVF are made by the Investment Committee established at the GP or expected to be established at
SBIA. GP and SBIA are wholly-owned subsidiaries of the Company, as such the Company has control over
SVF’s limited partnerships and holding entities as stipulated in IFRS 10 “Consolidated Financial Statements.”
Accordingly, all entities that comprise SVF are consolidated by the Company. Intercompany transactions suchas management fees and performance fees to the GP or SBIA paid out from each limited partnership, areeliminated at consolidation. The results of operations, assets and liabilities of SVF after eliminations arerecorded in the Company’s consolidated financial statements.
(2) Significant accounting policies
a. Portfolio company investments made by SVF
SVF uses the Limited Partners’ committed capital to invest in companies that fall within the SVF’s investment
strategy, mainly consisting of companies that have superior technologies or business models, and are expected
to experience strong growth over the next five years from the final closing.
(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. The Company will transfer, aportion of its shares of Arm Holdings plc (“Arm”) which has been pledged, to SVF, and Arm will continue
to be a subsidiary of the Company. The details are described in “(a) Contribution from the Company to SVF(Transfer of a portion of shares of Arm)” under “c. Contribution from Limited Partners to SVF.”(b) Investments except for subsidiaries
Investments except for subsidiaries made by SVF, including investments in associates, are managed inaccordance with SVF’s documented risk management policy or investment strategy, and the performance ofeach investment is reviewed on a fair value basis. Performance evaluation and investment decisions are
made by the relevant GP and the information is provided to the Company’s management; therefore, theseinvestments are recorded as financial assets at FVTPL upon initial recognition. Accordingly, theseinvestments are measured at fair value at the end of each quarter and the change during the reporting period
is recognized in profit or loss. Such investments that SVF made or investments that the Company and SVF
agreed to transfer to SVF from the Company are presented as “Investments from SVF accounted for using
FVTPL” in the condensed interim consolidated statement of financial position. The payments for theseinvestments are presented as “Payments for acquisition of investments by SVF” under cash flows frominvesting activities in the condensed interim consolidated statement of cash flows. Also, payments for42SoftBank Group Corp. Consolidated Financial Report
For the six-month period ended September 30, 2017acquisition of investments, which were presented as “Payments for acquisition of investments” for thethree-month period ended June 30, 2017 and have been agreed to be transferred to SVF from the Company
for the three-month period ended September 30, 2017, are included in “Payments for acquisition of
investments by SVF” for the six-month period ended September 30, 2017.
b. Results from SVF
Income and loss arising from the SVF segment are separated from operating income and loss arising from othersegments, recognized as a component of operating income, and presented as “Operating income from SVF” inthe condensed interim consolidated statement of income. Gain and loss on investments at SVF (realized gain
and loss on sales of investments, unrealized gain and loss on valuation of investments, interest and dividend
income from investments, except for gain and loss on investments in subsidiaries) and operating expenses suchas incorporation expenses of entities that comprise SVF, investment research expenses arising from the GP andadvisory companies, and administrative expenses arising from each entity, are included in “Operating income
and loss from SVF.” The details are described in “Note 11. Operating income from SVF.”
c. Contribution from Limited Partners to SVF
SVF draws down a portion of its committed capital from its Limited Partners (a “Capital Call”).
Uncalled committed capital from Third-Party Investors is deemed to be a loan commitment and not subject to
IAS 39, “Financial Instruments: Recognition and Measurement,” and therefore this amount is not recorded in
the consolidated statement of financial position. As of the end of September 2017, SVF had $55.6 billion of
uncalled committed capital from Third-Party Investors.
(a) Contribution from the Company to SVF (Transfer of a portion of 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 SVF through an in-kind contribution (the “In-kindContribution”) in satisfaction of approximately $8.2 billion of the Company’s commitment to SVF.
At each Capital Call, the Company is obligated and will be obligated to contribute a portion of the Arm
Shares with a value equivalent to the amount of the Capital Call issued to the Company. After (and to theextent that) the aggregate amount of the Capital Calls issued to the Company exceeds approximately $8.2
billion, the aggregate value of the In-kind Contribution (the “Excess Amount”), the Company willcontribute cash in satisfaction of the Excess Amount. The In-kind Contribution will be effectuated throughthe transfer of Arm Shares to SVF, subject to the satisfaction of preconditions related to regulatory
approvals prescribed in SVF’s documents. Such conditions include clearance from the Committee on
Foreign Investments in the United States in respect of the transfer of the Arm Shares. Pending delivery of
the Arm Shares to SVF following 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 SVF. As of the end of September
2017, the Company has pledged $4.1 billion of Arm Shares.
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 Third-Party Investors to SVF
The interests attributable to Third-Party Investors are classified as financial liabilities, “Third-party interests
in SVF” in the condensed interim consolidated statement of financial position, due to the predetermined
finite life (at least 12 years from the final closing) and contractual payment provision to each of the Limited
Partners within the limited partnership agreement. The liabilities are classified as “financial liabilities
measured at amortized cost” upon initial recognition. The amounts attributable to Third-Party Investors
represent the amounts that would be distributed in accordance with the limited partnership agreement in atheoretical liquidation scenario, and are disclosed on the consolidated statement of financial position as aliability. Changes in the interests of Third-Party Investors are recognized through net profit or loss andpresented as “Changes in third-party interests in SVF” in non-operating income and loss in the condensed
interim consolidated statement of income.
Contributions from Third-Party Investors to SVF are included in “Contributions into SVF from third-party
investors” under cash flows from financing activities in the condensed interim consolidated statement ofcash flows.

43SoftBank Group Corp. Consolidated Financial Report
For the six-month period ended September 30, 2017

3. Segment information(1) Description of reportable segments
The Company’s reportable segments are components of business activities for which discrete financial
information is available, and such information is regularly reviewed by the Company’s Board of Directors inorder to make decisions about the allocation of resources and assess its performance.
The Company has six reportable segments: the Domestic telecommunications segment, the Sprint segment, theYahoo Japan segment, the Distribution segment, the Arm segment, and the SVF 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 SVF segment conducts, through SVF, investment activities in a wide range of technology sectors. The SVF
segment was newly established from the three-month period ended June 30, 2017, due to the completion of theInitial Closing in May 2017. The segment income of the SVF segment consists of gain and loss arising frominvestments, including investments in the Company’s subsidiaries, held by SVF and agreed to be transferred to
SVF (gain and loss on investments at SVF), and operating expenses occurred in SVF.
Information on business segments which are not included in the reportable segments is classified in “Other.”“Other” includes mainly 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 and other adjustments (gains are deducted)) by each reportable segment. “Other
adjustments” are special items, such as acquisition-related costs and impairment loss mainly included in otheroperating 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.

44

SoftBank Group Corp. Consolidated Financial Report
For the six-month period ended September 30, 2017

For the six-month period ended September 30, 2016
(Millions of yen)

Reportable segments
Domestic
Telecommunications

Sprint

Yahoo
Japan

Customers

1,540,389

1,665,309

403,653595,230

14,356-

Intersegment

14,17757,228

5,844

31,126--108,375

1,554,566

1,722,537

409,497626,356

14,356-

4,327,312

465,933

104,565

99,371

14,305(5,123)-

679,051

99,371

14,305(5,123)-

679,051

Distribution

Arm

Total

SVF

Net sales

Total
Segment income

4,218,937

Reconciliation from segment income to adjusted EBITDA
Segment income
Depreciation andamortization

465,933

104,565

225,405

420,051

19,154

3,557

4,476

-

672,643

EBITDA
Gain from remeasurement
relating to businesscombination

691,338

524,616

118,525

17,862(647)-

1,351,694

-

-

(19)

-

(18,168)-(18,187)

Other adjustments-(7,692)--

25,466-

17,774

Adjusted EBITDA

691,338

516,924

118,506

17,862

6,651-

1,351,281(Millions of yen)

Reconciliations

Other

Consolidated

Net sales
Customers

52,897-

Intersegment

11,236(119,611)

-

Total

64,133(119,611)

4,271,834

Segment income(2,789)(28,899)

647,363

4,271,834

Reconciliation from segment income to adjusted EBITDA
Segment income
Depreciation andamortization(2,789)(28,899)

647,363

4,778

803

678,224

EBITDA
Gain from remeasurement
relating to businesscombination

1,989(28,096)

1,325,587--(18,187)

Other adjustments

-

8,107

25,881

Adjusted EBITDA

1,989(19,989)

1,333,281

45

SoftBank Group Corp. Consolidated Financial Report
For the six-month period ended September 30, 2017

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

Reportable segments
Domestic
Telecommunications

Sprint

Yahoo
Japan

Customers

1,513,296

1,712,283

417,647

616,475

93,675-

4,353,376Intersegment

15,664

81,044

7,792

28,377

1-

132,878

1,528,960

1,793,327

425,439644,852

93,676-

4,486,254

433,968

202,176

92,6907,363(14,794)

186,238

907,641

Distribution

Arm

Total

SVF

Net sales

Total
Segment income

Reconciliation from segment income to adjusted EBITDA
Segment income
Depreciation andamortization

433,968

202,176

92,6907,363(14,794)

186,238

907,641

225,693463,991

20,8133,491

30,285-744,273

EBITDA
Unrealized gain and loss
on valuation of
investments in SVF

659,661

666,167

113,503

10,854

15,491

186,238

1,651,914

-

-

-

-

-

(194,336)(194,336)

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

Adjusted EBITDA

659,661

629,031

108,574

10,854

15,491(8,098)1,415,513(Millions of yen)

Reconciliations

Other

Consolidated

Net sales
Customers

57,759-4,411,135Intersegment

13,198(146,076)

-

Total

70,957(146,076)

4,411,135

Segment income(8,213)(24,589)874,839

Reconciliation from segment income to adjusted EBITDA
Segment income
Depreciation andamortization(8,213)(24,589)874,839

5,409

825

750,507

EBITDA
Unrealized gain and loss
on valuation of
investments in SVF(2,804)(23,764)

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

Other adjustments

-

1,537

(40,528)

Adjusted EBITDA(2,804)(22,227)

1,390,482

46

SoftBank Group Corp. Consolidated Financial Report
For the six-month period ended September 30, 2017

For the three-month period ended September 30, 2016
(Millions of yen)

Reportable segments
Domestic
Telecommunications

Sprint

Yahoo
Japan

Distribution

Arm

Total

SVF

Net sales
Customers

785,727

817,211202,261

295,082

14,356-

Intersegment

7,076

31,403

3,003

15,775--57,257

Total

792,803

848,614205,264

310,857

14,356-

2,171,894

Segment income

226,920

59,19749,063

7,625(5,123)-

337,682

49,063

7,625(5,123)-

337,682

2,114,637

Reconciliation from segment income to adjusted EBITDA
Segment income
Depreciation andamortization

226,920

59,197113,139

206,002

9,987

1,768

4,476

-

335,372

EBITDA
Gain from remeasurement
relating to businesscombination

340,059

265,199

59,050

9,393

(647)

-

673,054(18,187)

-

-

(19)

-

(18,168)-

Other adjustments-(19,969)--

25,466-

5,497

Adjusted EBITDA

340,059245,230

59,031

9,393

6,651

-

660,364(Millions of yen)

Reconciliations

Other

Consolidated

Net sales
Customers

30,676-2,145,313

Intersegment

6,150(63,407)-

Total

36,826(63,407)2,145,313

Segment income

1,669(11,224)

328,127

Reconciliation from segment income to adjusted EBITDA
Segment income
Depreciation andamortization
EBITDA
Gain from remeasurement
relating to businesscombination

1,669(11,224)

328,127

2,420

423

338,215

4,089(10,801)

666,342--(18,187)

Other adjustments

-

1,279

6,776

Adjusted EBITDA

4,089(9,522)654,93147

SoftBank Group Corp. Consolidated Financial Report
For the six-month period ended September 30, 2017

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

Reportable segments
Domestic
Telecommunications

Sprint

Yahoo
Japan

Distribution

Arm

Total

SVF

Net sales
Customers

766,267

837,263

209,730

333,471

46,639-2,193,370

Intersegment

7,037

45,641

4,250

13,626--70,554

Total

773,304

882,904

213,980

347,097

46,639-2,263,924

Segment income

215,501

70,18941,106

4,998(7,859)81,009404,944

Reconciliation from segment income to adjusted EBITDA
Segment income
Depreciation andamortization

215,501

70,18941,106

4,998(7,859)81,009404,944

114,687

233,159

10,827

1,767

15,402-375,842EBITDA
Unrealized gain and loss
on valuation of
investments in SVF

330,188

303,348

51,933

6,765

7,543

81,009780,786

-

-

-

-

-

(87,465)(87,465)

Other adjustments

-

3,830

-

-

-

-

3,830

Adjusted EBITDA

330,188

307,178

51,933

6,765

7,543

(6,456)

697,151(Millions of yen)

Reconciliations

Other

Consolidated

Net sales
Customers

31,706-2,225,076

Intersegment

6,384(76,938)-

Total

38,090(76,938)

2,225,076

Segment income(1,466)(7,912)395,566

Reconciliation from segment income to adjusted EBITDA
Segment income
Depreciation andamortization
EBITDA
Unrealized gain and loss
on valuation of
investments in SVF(1,466)(7,912)395,566

2,263

411

378,516797(7,501)

774,082--(87,465)

Other adjustments

-

(75)

3,755

Adjusted EBITDA

797(7,576)690,37248

SoftBank Group Corp. Consolidated Financial Report
For the six-month period ended September 30, 2017

4. Business combinations
For the six-month period ended September 30, 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.

49SoftBank Group Corp. Consolidated Financial Report
For the six-month period ended September 30, 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 ¥25,466 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.

50

SoftBank Group Corp. Consolidated Financial Report
For the six-month period ended September 30, 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. 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.

51

SoftBank Group Corp. Consolidated Financial Report
For the six-month period ended September 30, 2017(7) Payment for acquisition of control over subsidiaries(Millions of yen)Six-month period ended
September 30, 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 thesix-month period ended September 30, 2016, are ¥14,356 million and ¥6,730 million, respectively. In addition,amortization expenses related to intangible assets recognized on the acquisition date are included in the
aforementioned net income.

52

SoftBank Group Corp. Consolidated Financial Report
For the six-month period ended September 30, 2017

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
September 30, 2017258,280
2,489,687
699,720
100,191
290,605
68,015
3,906,498

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
Intangible assets with finite useful lives
SoftwareTechnologies
Customer relationships
Spectrum migration costs
Favorable lease contracts
Trademarks
Other
Total

53

As of
September 30, 2017

4,100,651
703,031

4,175,222
706,338

722,934
522,894448,806
103,814104,754
57,532
182,223
6,946,639

718,856
550,431
399,190
100,485
99,35056,951
185,446
6,992,269

SoftBank Group Corp. Consolidated Financial Report
For the six-month period ended September 30, 2017

7. 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 borrowings
Current portion of corporate bonds
Current portion of lease obligations
Current portion of installment payables
Total
Non-current
Long-term borrowings
Corporate bonds
Lease obligations
Financial liabilities relating to sale of shares by variable
prepaid forward contract2
Installment payables
Total

As of
September 30, 2017667,664
80,0001,128,510
339,462438,284
40,173
2,694,093

1,100,970
100,000
2,190,643
480,602452,626
30,581
4,355,422

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

2,307,348
7,411,769
804,097

715,448724,61329,76012,164,277

19,568
11,267,395

Notes:
1. ¥244,522 million of short-term borrowings by SVF is included in the balance of short-term borrowings as of
September 30, 2017.
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.

54

SoftBank Group Corp. Consolidated Financial Report
For the six-month period ended September 30, 2017

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; ¥724,613 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 ¥658,670 million (¥143,935 million as of March 31, 2017) is recognized as derivative financial liabilities(non-current liabilities) in the condensed interim consolidated statement of financial position as of September 30,
2017; ¥508,421 million (¥199,189 million of derivative loss for the six-month period ended September 30, 2016)is recognized as a derivative loss in the condensed interim consolidated statement of income for the six-month
period ended September 30, 2017.
WRH LLC has the option (“cash settlement option”) to settle the variable prepaid forward contract by eitherdelivering cash or a combination of cash and Alibaba shares. If WRH LLC elects the cash settlement option, thecash equivalent to the fair value of the number of shares for the settlement, which is determined by the transaction
price of ADSs, will be paid.
Also, WRH LLC has the option (“early settlement option”) to settle the variable prepaid forward contract prior to
the scheduled settlement date. Settlement of the variable prepaid forward contract may be made prior to thescheduled settlement date if WRH LLC elects the early settlement option or under certain 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 September 30, 2017. The carrying amount of Alibaba shares
pledged as collateral by the Company is ¥181,264 million as of September 30, 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

55SoftBank Group Corp. Consolidated Financial Report
For the six-month period ended September 30, 2017(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)Six-month period ended
September 30, 2016
574,770
42,000616,770

Net increase of short-term borrowings*
Net increase of commercial paper
Total

Six-month period ended
September 30, 2017
429,851
20,000449,851

Note:* ¥241,594 million of net increase of short-term borrowings by SVF is included in the amount of net increase of short-termborrowings for the six-month period ended September 30, 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

Six-month period ended
September 30, 2016
1,570,087
521,000

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

297,065

255,391

578,436-

2,966,588

1,529,137(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)Six-month period ended
September 30, 2016
(384,655)(100,000)(223,649)(21,581)(729,885)

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

56

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

SoftBank Group Corp. Consolidated Financial Report
For the six-month period ended September 30, 2017

8. Foreign currency exchange rates
Exchange rates of the major currencies used for translating financial statements of foreign operations are as follows:(1) Rate at the end of the period
(yen)
As of
September 30, 2017112.73151.37

As ofMarch 31, 2017112.19140.08USD
GBP(2) Average rate for the quarter
For the six-month period ended September 30, 2016

USD
GBP*

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

For the six-month period ended September 30, 2017

USD
GBP

Three-month period ended
June 30, 2017111.61142.92(yen)
Three-month period ended
September 30, 2017111.38146.209. Equity
The components of accumulated other comprehensive income are as follows:(Millions of yen)

As ofMarch 31, 2017

As of
September 30, 2017

Available-for-sale financial assets

11,98360,614

Cash flow hedges
Exchange differences on translating
foreign operations(44,877)(57,011)244,140

578,032

211,246

581,635

Total

57

SoftBank Group Corp. Consolidated Financial Report
For the six-month period ended September 30, 2017

10. 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 September 30, 2017, accrued interest, which is not recognized as distribution to owners of other equity
instruments because the payment has not been determined yet, is ¥6,433 million.
The details of the Hybrid Notes are as follows:1.

Undated Subordinated NC6

Undated Subordinated NC10

Resettable Notes

Resettable Notes

USD 2.75 billion

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

Total amount of issue

2.

Issue price

100% of the principal amount

100% of the principal amount3.

Initial interest rate*

6.000% per annum

6.875% per annum

4.

Maturity date

None (Perpetual)

None (Perpetual)

5.

Optional redemption

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.

58

SoftBank Group Corp. Consolidated Financial Report
For the six-month period ended September 30, 2017

11. Operating income from SVF
The components of operating income from SVF are as follows:(Millions of yen)Six-month period ended
September 30, 2016

Six-month period ended
September 30, 2017-

194,336-(8,098)186,238

Gain and loss on investments at SVF*
Unrealized gain and loss on valuation of
investments
Operating expenses
Total

Note:
* “Realized gain and loss on sales of investments” and “Interest and dividend income from investments” are notrecognized for the six-month period ended September 30, 2017.

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

Sprint segment
Gain on spectrum license exchange1
Legal reserves2
Gain and loss on contract termination
Loss on disposal of property, plant andequipment3
U.S. state tax charge
OtherYahoo Japan segment
Insurance income4
Arm segment
Acquisition-related costs
Company-wide
Expenses resulting from resignation of director5
Total

Six-month period ended
September 30, 2016

Six-month period ended
September 30, 2017

36,420(12,287)

53,435
6,186
558(24,522)(44,497)(10,600)(5,840)

352

-

4,929

(25,466)-(8,107)(50,402)(1,537)
19,426

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. Legal reserves recorded in the previous year were reduced due to the favorable development in pending legal
proceedings.
3. For the six-month period ended September 30, 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¥24,995 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. 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.

59

SoftBank Group Corp. Consolidated Financial Report
For the six-month period ended September 30, 2017

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 September 30, 2016 and recorded an expense of ¥3,090 million
during the six-month period ended September 30, 2016. The expense is remeasured every quarter end based on
the share price of SoftBank Group Corp. until the determination of the payment amount, and the changes arerecognized through profit or loss.

13. Finance cost
The components of finance cost are as follows:(Millions of yen)Six-month period ended
September 30, 2016
Interest expenses

Six-month period ended
September 30, 2017

(222,022)(243,458)

14. Derivative loss
¥508,421 million of derivative loss (¥199,189 million of derivative loss for the six-month period ended September
30, 2016) related to collar transaction included in variable prepaid forward contract was recorded. The details aredescribed in “(2) Transaction for sale of Alibaba shares by variable prepaid forward contract” under “Note 7.
Interest-bearing debt.”

15. 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

Six-month period ended
September 30, 2016
74,741

Six-month period ended
September 30, 201737,488(58,140)

10,207(42,540)-

3,354(22,585)

1,041
48,736

Notes:
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.

16. Supplemental information to the condensed interim consolidated statement of cash flows(1) Payments for acquisition of investments by SVF
For the six-month period ended September 30, 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 SVF from theCompany or investments agreed to be transferred to SVF from the Company for the three-month period ended
September 30, 2017, and accordingly the amount is reclassified as “Payments for acquisition of investments by SVF”

60

SoftBank Group Corp. Consolidated Financial Report
For the six-month period ended September 30, 2017

under cash flows from investing activities in the condensed interim consolidated statement of cash flows for thesix-month period ended September 30, 2017.
(2) “Other” in cash flows from investing activities
For the six-month period ended September 30, 2017
“Other” in cash flows from investing activities includes ¥157,436 million of proceeds from borrowings, which isdeposited in an escrow account, for the expected acquisition of Fortress Investment Group LLC.

61