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 2 of this report.

SoftBank Group Corp.
Consolidated Financial Report
For the Three-Month Period Ended June 30, 2022 (IFRS)Tokyo, August 8, 2022

1.

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

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

Net sales

Three-month period ended
June 30, 2022
Three-month period ended
June 30, 2021

Three-month period ended
June 30, 2022
Three-month period ended
June 30, 2021

Incomebefore income tax

Net income
AmountAmount%Amount%¥1,572,030

6.3¥(3,292,455)-¥1,479,134

15.6¥1,292,478

55.0

Net income
attributable toowners of the parent%¥(3,096,321)

Amount-¥932,489 (29.2)

Basic earnings per
share (Yen)

Diluted earnings per
share (Yen)¥(1,949.55)¥(1,950.29)¥437.45¥394.73%¥(3,162,700)

Total
comprehensive
incomeAmount-¥761,509 (39.4)%¥(1,043,151)-¥996,400 (12.3)(2) Financial Position2.

Total assets

Total equity

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

As of June 30, 2022

¥46,976,341¥10,174,598¥8,562,413

18.2

As of March 31, 2022

¥47,544,670¥11,707,762¥9,975,674

21.0

Dividends
Dividends per shareFirst quarter

Second quarter

Third quarter

Fourth quarter

Total

(Yen)

(Yen)

(Yen)

(Yen)

(Yen)

Fiscal year ended
March 31, 2022

-

22.00

-

22.00

44.00

Fiscal year ending
March 31, 2023

22.00

-

22.00

44.00

Fiscal year ending
March 31, 2023 (Forecasted)

Note:* Revision of the latest forecasts on the dividends: No

* Notes(1) Significant changes in scope of consolidation (changes in scope of consolidation of specified subsidiaries): No
Newly consolidated: None
Excluded from consolidation: None
Note:
* Foreign subsidiaries prepare stand-alone financial statements only under circumstances where it is necessary under their local
laws and practices. Applicability of Cabinet Office Ordinance on Disclosure of Corporate Affairs, etc. Article 19, Paragraph(10), Item (i) to (iii), is determined by using the financial statements.
On the other hand, for foreign subsidiaries that do not prepare stand-alone financial statements, information on the capital andnet assets for those companies is not available. Therefore, Cabinet Office Ordinance on Disclosure of Corporate Affairs, etc.
Article 19, Paragraph (10), Item (i) is used to determine whether the companies are the specified subsidiaries.
The applicability of Cabinet Office Ordinance on Disclosure of Corporate Affairs, etc. Article 19, Paragraph (10), Item (i) is
determined based on the percentage of total amount of purchase from SoftBank Group Corp. and dividend paid to SoftBank
Group Corp. to total amount of operating revenue of SoftBank Group Corp.
For fund-type subsidiaries, the amount of net assets based on financial statements prepared in accordance with thecorresponding laws and practices is used to determine the applicability of Cabinet Office Ordinance on Disclosure of Corporate
Affairs, etc. Article 19, Paragraph (10), Item (ii).
(2) Changes in accounting policies and accounting estimates[1] Changes in accounting policies required by IFRSs: No[2] Changes in accounting policies other than those in [1]: No[3] Changes in accounting estimates: No(3) Number of shares issued (common stock)[1] Number of shares issued (including treasury stock):
As of June 30, 2022:
1,722,953,730 shares
As of March 31, 2022:
1,722,953,730 shares[2] Number of shares of treasury stock:
As of June 30, 2022:
As of March 31, 2022:

132,229,718 shares
76,163,508 shares[3] Number of average shares outstanding during three-month period (April-June):
As of June 30, 2022:

1,627,687,814 shares

As of June 30, 2021:

1,722,780,500 shares* This condensed interim consolidated financial report is not subject to interim review procedures by certified public
accountants or an audit firm.
* Note to forecasts on the consolidated results of operations and other items
Descriptions regarding the future are estimated based on the information that the Company is able to obtain at the present point intime and assumptions which are deemed to be reasonable. However, actual results may be different due to various factors.
On August 8, 2022 (JST), the Company will hold an earnings results briefing for the media, institutional investors, and financial
institutions. This earnings results briefing will be broadcast live on the Company’s website in both Japanese and English athttps://group.softbank/en/ir. The Data Sheet will also be posted on the website in a few days at the same site.

SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2022

(Appendix)
Contents

1. Results of Operations .....................................................................................................................................

P.3(1) Overview of Results of Operations ...........................................................................................................

P.3

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

P.4

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

P.7(a) Investment Business of Holding Companies Segment .....................................................................

P.8(b) SoftBank Vision Funds Segment ...................................................................................................... P.14
(c) SoftBank Segment ............................................................................................................................. P.23(d) Arm Segment .................................................................................................................................... P.24(e) Other .................................................................................................................................................. P.27
(2) Overview of Financial Position ................................................................................................................ P.28
(3) Overview of Cash Flows ........................................................................................................................... P.36
(4) Forecasts ................................................................................................................................................... P.39
2. Condensed Interim Consolidated Financial Statements and Primary Notes .................................................. P.41
(1) Condensed Interim Consolidated Statement of Financial Position ........................................................... P.43
(2) Condensed Interim Consolidated Statement of Profit or Loss
and Condensed Interim Consolidated Statement of Comprehensive Income .......................................... P.45
(3) Condensed Interim Consolidated Statement of Changes in Equity .......................................................... P.47
(4) Condensed Interim Consolidated Statement of Cash Flows ..................................................................... P.51
(5) Significant Doubt about Going Concern Assumption .............................................................................. P.53
(6) Notes to Condensed Interim Consolidated Financial Statements ............................................................. P.53
Disclaimer
This material does not constitute an offer to sell, or a solicitation of an offer to buy, limited partnership interests or comparable
limited liability equity interests in any funds (including SoftBank Vision Fund 1, SoftBank Vision Fund 2, and SoftBank Latin
America Funds) managed by any of the subsidiaries of SBG including SB Global Advisers Limited, SB Investment Advisers (UK)
Limited, or their respective affiliates, or any securities in any jurisdiction, nor should it be relied upon as such in any way.
Notice Regarding PFIC Status
It is possible that SBG and certain subsidiaries of SBG may be a “passive foreign investment company” (“PFIC”) under the U.S.
Internal Revenue Code of 1986, as amended, for its current fiscal year due to the composition of its assets and the nature of its
income. For the fiscal year ended March 31, 2022, we believe that SBG and certain subsidiaries of SBG were PFICs. We
recommend that U.S. holders of SBG’s shares consult their tax advisors with respect to the U.S. federal income tax consequences tothem if SBG and its subsidiaries are classified as PFICs. SBG is not responsible for any tax treatments or consequences thereof withrespect to U.S. holders of SBG’s shares.

1

SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2022

Definition of Company Names and Abbreviations Used in This Appendix

Company names and abbreviations used in this appendix, unless otherwise stated or interpreted differently in thecontext, are as follows:
Company names / Abbreviations
Definition
SoftBank Group Corp. or SBG
SoftBank Group Corp. (stand-alone basis)
The Company
SoftBank Group Corp. and its subsidiaries*Each of the following names or abbreviations indicates the respective company and its subsidiaries, if any.
SB Northstar or
SB Northstar LP
asset management subsidiaries
SoftBank Vision Fund 1 or SVF1
SoftBank Vision Fund L.P. and its alternative investment vehicles
SoftBank Vision Fund 2 or SVF2
SoftBank Vision Fund II-2 L.P.
SVF2 LLC
SVF II Investment Holdings LLC
SoftBank Latin America Funds or
SBLA Latin America Fund LLC
LatAm Funds
SoftBank Vision Funds or SVF
SVF1, SVF2, and LatAm Funds
SBIA
SB Investment Advisers (UK) Limited
SBIA USSB Investment Advisers (US) Inc.
SBGASB Global Advisers Limited
Arm
Arm Limited
Alibaba
Alibaba Group Holding Limited
MgmtCoMASA USA LLC
The first quarter
Three-month period ended June 30, 2022
The first quarter-end
June 30, 2022
The fiscal year
Fiscal year ending March 31, 2023
The previous fiscal year
Fiscal year ended March 31, 2022
The previous fiscal year-end
March 31, 2022
Exchange Rates Used for Translations

USD / JPY
Average rate for the quarter
Rate at the end of the period

Q1¥110.00

Fiscal year ended March 31, 2022
Q2
Q3
Q4¥110.47¥113.60¥117.10¥122.39

Fiscal year ending
March 31, 2023
Q1
¥129.04¥136.68

CHANGES IN PRESENTATION OF CONSOLIDATED STATEMENT OF PROFIT OR LOSS ANDREPORTABLE SEGMENTS
Integration of the Latin America Funds Segment into the SoftBank Vision Funds Segment

From the first quarter, the Latin America Funds segment has been integrated into the SoftBank Vision Funds
segment, following a review of the segment management classification after SBGA, the manager of SVF2, began
managing the LatAm Funds. In line with this, gain and loss on investments at LatAm Funds, which were presented
as “Gain (loss) on investments at Latin America Funds” in the past fiscal year, are now included in “Gain (loss) on
investments at SoftBank Vision Funds.” Also, the change in third-party interests in LatAm Funds, which was
included in “Other gain (loss)” in the past fiscal year, is now included in “Change in third-party interests in SVF.”
Information for the same period of the previous fiscal year has been reclassified and presented accordingly.
Presentations in Consolidated Statement of Financial Position and Consolidated Statement of Cash Flows have also
been changed. For details, see “1. Changes in presentation” under “(6) Notes to Condensed Interim Consolidated
Financial Statements” in “2. Condensed Interim Consolidated Financial Statements and Primary Notes.”2

SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2022

1. Results of Operations(1) Overview of Results of Operations
1. Highlights of results◆ Loss on investments of ¥2,834.4 billion- ¥2,919.1 billion investment loss at SoftBank Vision Funds (of which ¥631.4 billion was attributable to thirdparty interests)· SVF1: Realized loss (net) of ¥30.5 billion was recorded mainly due to monetization of investments in*1
public portfolio companies. Unrealized loss on valuation (net) totaled ¥1,215.6 billion mainly due to thedecline in the share prices of public portfolio companies, which reflected the global downward trend inshare prices due to growing concerns over economic recession driven by inflation and rising interest rates,*1
as well as the decline in the fair value of private portfolio companies, reflecting share price declines inmarket comparable companies.
· SVF2: Recorded realized gain of ¥3.3 billion. Unrealized loss on valuation (net) totaled ¥1,326.0 billion
mainly due to declines in the share prices of public portfolio companies as well as declines in fair value in awide range of private portfolio companies, reflecting mark-downs of those with recent funding rounds
and/or weaker performance, as well as share price declines in market comparable companies.
◆ Loss before income tax of ¥3,292.5 billion (deterioration of ¥4,584.9 billion yoy)

Recorded finance cost of ¥114.1 billion. Foreign exchange loss of ¥820.0 billion was recorded due to theimpact of an increase in U.S. dollar-denominated net liabilities of domestic Group companies in yen terms
reflecting the weaker yen. Derivative loss (excluding gain (loss) on investments) of ¥259.3 billion was also
recorded related to prepaid forward contracts using Alibaba shares, due to an increase in the Alibaba shareprice.
◆ Net loss attributable to owners of the parent of ¥3,162.7 billion (deterioration of ¥3,924.2 billion yoy)

2. Prudent defensive financial management, including continued monetization and heightened investment2
discipline, resulted in a large improvement in LTV*
◆ Continued monetization- $10.49 billion was raised through prepaid forward contracts using Alibaba shares.
- 21.2 million T-Mobile shares were sold for $2.40 billion.
◆ Heightened investment discipline- SVF1 made follow-on investments in existing portfolio companies totaling $0.06 billion in the first quarter1and held 80 investments as of the first quarter-end.
- SVF2 made new and follow-on investments totaling $2.11 billion in the first quarter, bringing the fund’s
2
total cost to $49.65 billion. SVF2 held 269 investments as of the first quarter-end.
- LatAm Funds invested $0.15 billion in total in the first quarter and held 88 investments as of the firstquarter-end.
3. Continued share repurchase- SBG acquired shares totaling ¥293.5 billion in the first quarter. This brought the cumulative repurchase total
to ¥638.1 billion as of June 30, 2022, of the up to ¥1 trillion share repurchase program authorized in
November 2021. As of July 31, 2022, SBG had acquired the cumulative total of ¥704.8 billion worth ofshares.
Notes:
1. Public portfolio companies are shares traded on stock exchanges or over-the-counter markets. Private portfolio companies are thosethat do not fall under the category of public portfolio companies. The same applies hereinafter.
2. The ratio of liabilities to holding assets, which is calculated as adjusted net interest-bearing debt divided by equity value of holdings.
Equity value of holdings and adjusted net interest-bearing debt each exclude amounts to be settled at maturity or borrowings that arepart of asset-backed finance. The calculation of adjusted net interest-bearing debt excludes interest-bearing debt and cash and cash
equivalents, etc. attributable to entities managed on a self-financing basis such as SoftBank Corp. (including its subsidiaries such as
Z Holdings Corporation), SVF1, SVF2, LatAm Funds, Arm, and PayPay Corporation, as well as SB Northstar.

3

SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2022

a. Consolidated Results of Operations(Millions of yen)Three months ended June 30
2021
2022
Net sales
Gross profit
Gain on investments

ChangeChange %1,479,134
811,971

1,572,030
883,791

92,896
71,820

6.3%
8.8%

Gain on investments at Investment
Business of Holding Companies

741,527

111,223(630,304)(85.0%) B

Gain (loss) on investments at SoftBank
Vision Funds
Gain (loss) on other investments
Total gain (loss) on investments

507,303
14,2381,263,068(2,919,130)(26,533)(2,834,440)(3,426,433)(40,771)(4,097,508)-(593,430)(82,799)(14,874)(626,513)(114,139)(819,969)(33,083)(31,340)(805,095)

5.6%
37.9%
-

D
E

50,380(158,370)(208,750)-

F

Derivative loss
(excluding gain (loss) on investments)(111,536)(259,250)(147,714)-

G

Change in third-party interests in SoftBank
Vision Funds
Other gain
Income before income tax
Income taxes
Net income(134,551)
104,249
1,292,478(359,989)
932,489

631,367
5,068(3,292,455)
196,134(3,096,321)

765,918(99,181)(4,584,933)
556,123(4,028,810)(95.1%)- H-

Net income attributable to owners of
the parent

761,509(3,162,700)(3,924,209)-

Total comprehensive income

996,400(1,043,151)(2,039,551)-

Comprehensive income attributable toowners of the parent

823,095(1,094,795)(1,917,890)-

Selling, general and administrative
expensesFinance cost
Foreign exchange loss
Income (loss) on equity method
investments

AC

The following is an overview of the main and noteworthy components.
A Net Sales
Net sales increased in the SoftBank and Arm segments.
B Gain on Investments at Investment Business of Holding Companies
Investment gain of ¥111,223 million was recorded at Investment Business of Holding Companies. Of this, theCompany recorded a gain of ¥154,547 million on investments in T-Mobile U.S. Inc. (“T-Mobile”) and Deutsche
Telekom AG (“Deutsche Telekom”) shares (derivative gain related to investments, unrealized valuation gain, andgain on sales of T-Mobile shares), and a gain of ¥97,263 million related to settlement of prepaid forward contracts
using Alibaba shares. On the other hand, the Company recorded a loss of ¥67,559 million on investments at asset
management subsidiaries. See “(a) Investment Business of Holding Companies Segment” under “b. Results by
Segment” for details.

4SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2022

C Loss on Investments at SoftBank Vision Funds
Investment loss of ¥2,919,130 million was recorded by the SoftBank Vision Funds, of which ¥631,367 million was
attributable to third-party interests. SVF1 recorded realized loss on investments (net) of ¥30,466 million, mainly due
to the monetization of investments in public portfolio companies. In addition, SVF1 recorded unrealized losses on
valuation (net) totaling ¥919,608 million for public portfolio companies, reflecting a decline in the fair value due tothe global downward trend in share prices due to growing concerns over economic recession driven by inflation andrising interest rates. This included losses of ¥293,373 million recorded for Coupang, Inc. (“Coupang”), ¥235,888
million for SenseTime Group Inc. (“SenseTime”), and ¥220,718 million for DoorDash Inc. (“DoorDash”). For
private portfolio companies, SVF1 recorded unrealized loss on valuation (net) totaling ¥295,966 million, due to a
decline in fair value, reflecting share price declines in market comparable companies.
SVF2 recorded realized gain on investments of ¥3,257 million, as a result of the entire sale of its interest in KE
Holdings Inc. (“KE Holdings”). In addition, SVF2 recorded unrealized loss on valuation (net) of ¥1,325,967
million. For public portfolio companies, the loss was mainly due to share price declines of AutoStore Holdings Ltd.
(“AutoStore”) and WeWork Inc. (“WeWork”). For private portfolio companies, the fair value decreased in a wide
range of investments, reflecting mark-downs of those with recent funding rounds and/or weaker performance, as
well as share price declines in market comparable companies. See “(b) SoftBank Vision Funds Segment” under “b.
Results by Segment” for details.
Primarily as a result of B through C, total loss on investments was ¥2,834,440 million.
D Finance Cost
Interest expenses increased by ¥20,435 million in the Investment Business of Holding Companies segment. This
mainly reflected increases in interest expenses at SBG.

3E Foreign Exchange Loss
Foreign exchange loss of ¥819,969 million (net) was recorded due to the weaker yen, mainly because the U.S.
dollar-denominated liabilities (such as borrowings from subsidiaries and foreign currency-denominated straightbonds) of SBG and fund procurement subsidiaries in Japan exceeded their U.S. dollar-denominated cash and cash
equivalents and loans receivable.
For foreign subsidiaries and associates whose functional currency is not Japanese yen (primarily U.S. dollars),such as SoftBank Vision Funds, the yen value of their net assets increased due to the weaker yen. However, thispositive impact is not included in foreign exchange gains; instead, it is included in the increase in exchange
differences from the translation of foreign operations of ¥2,096,694 million, which is listed under accumulated othercomprehensive income in equity of the Condensed Interim Consolidated Statement of Financial Position.
F Loss on Equity Method Investments
4

Loss on equity method investments related to Alibaba was ¥135,517 million, a deterioration of ¥194,248 million
year on year, mainly due to recording investment loss on Alibaba’s investments classified as financial assets at
FVTPL.

5

SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2022

G Derivative Loss (Excluding Gain (Loss) on Investments)
Derivative loss of ¥333,588 million was recorded in connection with prepaid forward contracts using Alibaba shares
entered into between the fiscal year ended March 31, 2020 and the first quarter, due to an increase in the price of
Alibaba shares.
Within derivative gain (loss), gains and losses related to investing activities, such as acquisition and sale ofshares, are included in “gain (loss) on investments.” For example, this applies to derivative gains and losses arisingfrom long call options of listed stocks held by asset management subsidiaries. Conversely, those related to noninvesting activities, particularly gains and losses arising from derivatives used in fund procurement, are included in“derivative gain (loss) (excluding gain (loss) on investments).” For example, this applies to derivative gains andlosses related to prepaid forward contracts using Alibaba shares and T-Mobile shares. However, in cases where theprepaid forward contracts are settled using shares rather than cash, gains and losses arising from the reversal ofderivative financial assets or liabilities at settlement are included in “investment gain (loss)” as part of gains andlosses related to settlement of prepaid forward contracts using shares.
Primarily as a result of A through G, loss before income tax was ¥3,292,455 million, a deterioration of¥4,584,933 million year on year.
H Income Taxes
Income taxes were negative ¥196,134 million (profit). This mainly reflected the reversal of deferred tax liabilities in
conjunction with recording derivative loss related to prepaid forward contracts using Alibaba shares, althoughincome taxes were recorded at SoftBank Corp. and Yahoo Japan Corporation.
Primarily as a result of A through H, net loss attributable to owners of the parent was ¥3,162,700 million, adeterioration of ¥3,924,209 million year on year.

6SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2022

b. Results by Segment
The Company’s reportable segments are the components of its business activities for which decisions on resource
allocation and assessments of performance are made. From the first quarter, the Latin America Funds segment has
been integrated into the SoftBank Vision Funds segment, following a review of the segment managementclassification after SBGA, the manager of SVF2, began managing the LatAm Funds. As of the first quarter-end,
there are four reportable segments: Investment Business of Holding Companies, SoftBank Vision Funds, SoftBank,
and Arm.
The following is a summary of the reportable segments.
Segments
Main businesses
Reportable segments
Investment Business of ·Investment activities by SBG and its
subsidiaries
Holding Companies

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

SoftBank Vision Funds·Investment activities by SVF1, SVF2, and
LatAm Funds

SB Investment Advisers (UK)
Limited
SoftBank Vision Fund L.P.
SB Global Advisers Limited
SoftBank Vision Fund II-2 L.P.
SBLA Latin America Fund LLC

SoftBank·Consumer business: Provision of mobile
services, sale of mobile devices, andprovision of broadband services to retailcustomers in Japan·Enterprise business: Provision of mobile
communications and solutions services toenterprise customers in Japan·Distribution business: Provision of ICT
services products to enterprise customers
and provision of communication devicerelated products and IoT equipment to retailcustomers·Yahoo! JAPAN/LINE business: Provisionof Internet advertising and e-commerce
services

SoftBank Corp.
Z Holdings Corporation
Yahoo Japan Corporation
LINE Corporation

Arm·Design of microprocessor intellectual
property and related technology·Sale of software tools and provision ofrelated services

Arm Limited·Smartphone payment business·Alternative investment managementbusiness·Fukuoka SoftBank HAWKS-related
businesses

PayPay Corporation
Fortress Investment Group LLC
Fukuoka SoftBank HAWKS Corp.

Other

7

SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2022(a) Investment Business of Holding Companies Segment
1. Gain on investments of ¥111.2 billion: Recorded ¥154.5 billion investment gain on T-Mobile andDeutsche Telekom (a total of derivative gain on investments, unrealized valuation gain, gain on sales of
T-Mobile shares) and ¥97.3 billion gain related to settlement of prepaid forward contracts using Alibaba*1shares. An investment loss of ¥67.5 billion was recorded at asset management subsidiaries.
2. Segment loss was ¥1,198.1 billion, as a result of the recording of foreign exchange loss of ¥822.0 billion
and derivative loss of ¥245.0 billion.
Note:
1. Includes the impact of investments by SB Northstar in special purpose acquisition companies (SPACs) controlled by SBIA US,
which has been eliminated in consolidation as an intercompany transaction.

OVERVIEWThis segment is led by SBG, which conducts investment activities, either directly or through its subsidiaries, as a
strategic investment holding company. The segment consists of SBG, SoftBank Group Capital Limited, SoftBank
Group Japan Corporation (“SBGJ”), asset management subsidiary SB Northstar, and certain other subsidiaries
engaged in investment and financing activities. Gain and loss on investments at Investment Business of Holding
Companies comprises gains and losses on investments held by SBG either directly or through its subsidiaries but
does not include gains and losses on investments pertaining to subsidiaries’ shares, such as dividend income fromsubsidiaries or impairment losses related to the subsidiaries’ shares.
The companies comprising this segment hold approximately 120 portfolio companies, including Alibaba, TMobile, and Deutsche Telekom, as well as investees of SB Northstar. They are either equity method associates (suchas Alibaba) or investments classified as financial assets at FVTPL. Regarding the financial results of portfolio
companies classified as equity method associates, income and losses are recorded as “income (loss) on equity
method investments” in proportion to equity interest. Investments classified as financial assets at FVTPL aremeasured at fair value every quarter, and any change in fair value is recorded in the Consolidated Statement ofProfit or Loss as “gain (loss) on investments.”

Investment in listed stocks and other instruments by asset management subsidiaries
SB Northstar acquires and sells listed stocks and other instruments and engages in derivative and credit transactions
related to listed stocks, using surplus funds of SBG. However, its business scale is being downsized to reallocate
funds to investments under SVF2, which is currently the primary focus of the Company. The balance of SB
Northstar’s shareholdings decreased from ¥315.9 billion as of the previous fiscal year-end to ¥207.0 billion as of thefirst quarter-end. SBG indirectly holds 67% and SBG’s Representative Director, Corporate Officer, Chairman &CEO Masayoshi Son indirectly holds 33% of interests in SB Northstar. Masayoshi Son’s interest is deducted fromthe gains and losses on investments at SB Northstar as a non-controlling interest; therefore, 67% of the gains andlosses on investments impacts net income attributable to owners of the parent. If, at the end of the fund life (12 years+ 2-year extension), SB Northstar has any unfunded repayment obligations to SBG, Masayoshi Son will pay his pro
rata share of any such unfunded obligations based upon his relative ownership percentage of SB Northstar.
Investment decisions of SB Northstar were made by the Company’s wholly owned subsidiary SB
MANAGEMENT LIMITED up until March 31, 2022; however, in conjunction with the downsizing of SB
Northstar’s business, SB Northstar’s investment decisions have been made by its general partner, a wholly owned
subsidiary of the Company, since April 1, 2022.

8

SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2022

FINANCIAL RESULTS(Millions of yen)Three months ended June 30
2021
2022
Gain on investments at Investment Business of
Holding Companies
Gain relating to settlement of prepaid
forward contracts using Alibaba shares
Gain relating to sales of T-Mobile shares
Realized gain on investments at asset
management subsidiaries
Unrealized gain (loss) on valuation of
investments at asset management
subsidiaries
Derivative gain (loss) on investments at asset
management subsidiaries
Realized gain (loss) on investments
Unrealized gain (loss) on valuation of investments
Change in valuation for the fiscal year
Reclassified to realized gain (loss)*1
recorded in the past fiscal years
Derivative gain on investments
Other
Selling, general and administrative expenses
Finance cost
Foreign exchange loss
Income (loss) on equity method investments
Derivative loss
(excluding gain (loss) on investments)
Mainly due to prepaid forward contracts using
Alibaba shares
Other gain (loss)

Segment income (income before income tax)

ChangeChange %741,381111,233(630,148)(85.0%) A-

97,263
24,842

97,263
24,842-65,416

7,176(58,240)(89.0%)

17,557(69,479)(87,036)-

119,51191,789288,351
360,875(5,246)(400)(27,605)(27,941)(124,757)(92,189)(315,956)(388,816)-(72,524)
147,277
11,480(20,370)(59,594)(12,661)
54,670336
73,60911,073(16,657)(80,029)(822,035)(139,782)

72,860(73,668)
(407)
3,713
(20,435)(809,374)(194,452)(50.0%)(3.5%)(18.2%)
34.3% B
- C
- D

(108,211)
30,112(244,986)(5,797)(136,775)(35,909)-625,327(1,198,053)(1,823,380)

-

E

Note:
1. Unrealized gains and losses on valuation of investments recorded in previous fiscal years related to the investments realized in thefirst quarter are reclassified as “realized gain (loss) on investments.”

A Gain on investments at Investment Business of Holding Companies: ¥111,233 million· Gain relating to settlement of prepaid forward contracts using Alibaba shares of ¥97,263 million was recorded dueto the settlement of a portion of the contracts through the delivery of Alibaba shares.
· Gain relating to sales of T-Mobile shares of ¥24,842 million was recorded. This was due to the sale of 21.2 million
T-Mobile shares held by the Company to Deutsche Telekom as Deutsche Telekom exercised a portion of its call
options in April 2022.
· Realized gain of ¥7,176 million and unrealized valuation loss of ¥69,479 million were recorded in investments at
asset management subsidiaries. This was a result of investments in listed stocks and other instruments by SB
Northstar.
· Unrealized loss of ¥27,605 million was recorded on valuation of investments. This was mainly due to recording
unrealized losses on valuation of ¥51,372 million for SoFi Technologies, Inc., ¥13,325 million for NVIDIA
Corporation, and ¥12,541 million for Lemonade, Inc. Unrealized gains on valuation of ¥31,768 million were
9SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2022

recorded for T-Mobile and ¥27,604 million for Deutsche Telekom.
· Derivative gain of ¥73,609 million on investments was recorded, mainly due to a gain of ¥71,201 million recorded
pertaining to the right to acquire T-Mobile shares for no additional consideration if certain conditions are met.

B Finance cost: ¥80,029 million (increase of ¥20,435 million year on year)
3

Interest expenses increased by ¥25,698 million year on year at SBG to ¥79,287 million, due to an increase ininterest-bearing debt mainly resulting from borrowings made through asset-backed finance and the issuance ofbonds.

C Foreign exchange loss: ¥822,035 million
Foreign exchange loss of ¥822,035 million (net) was recorded due to the weaker yen, mainly because the U.S.
dollar-denominated liabilities (such as borrowings from subsidiaries and foreign currency-denominated straightbonds) of SBG and fund procurement subsidiaries in Japan exceeded their U.S. dollar-denominated cash and cash
equivalents and loans receivable.

D Loss on equity method investments: ¥139,782 million (deterioration of ¥194,452 million year on year)
4

Loss on equity method investments related to Alibaba was ¥135,517 million, a deterioration of ¥194,248 million
year on year. This was mainly due to recording a loss on investments classified as financial assets at FVTPL.

E Derivative loss (excluding gain (loss) on investments): ¥244,986 million
Derivative loss of ¥333,588 million was recorded due to an increase in the price of Alibaba shares, in connection
with prepaid forward contracts using Alibaba shares entered into between the fiscal year ended March 31, 2020 andthe first quarter.

10

SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2022

Monetization of T-Mobile shares
On September 6, 2021, the Company entered into a master framework agreement (the “Agreement”) with
Deutsche Telekom, pursuant to which Deutsche Telekom agreed to partially exercise its right to acquire theshares of T-Mobile in accordance with the terms of the fixed and floating call options (“Deutsche Telekom Call
Options”) granted by the Company to Deutsche Telekom in June 2020, and to amend certain execution conditions
associated with the floating call options. Following the exercise of Deutsche Telekom Call Options, the Company
sold 45,366,669 of its 106,291,623 T-Mobile shares to Deutsche Telekom and received 225,000,000 Deutsche
Telekom shares (the reference price: €20 per share; 4.5% of Deutsche Telekom’s outstanding shares) as
consideration. Under the Agreement, Deutsche Telekom also provided its consent for the Company to haveadditional flexibility to pledge its T-Mobile shares in connection with entry into margin loans and othermonetization transactions. Following entry into the Agreement, the Company carried out the following
monetization transactions using T-Mobile and Deutsche Telekom shares.
On April 12, 2022, Deutsche Telekom exercised additional Deutsche Telekom Call Options, upon which theCompany sold an additional 21,153,145 of its T-Mobile shares to Deutsche Telekom for consideration of $2.4
billion. Of this amount, approximately $1.2 billion was used to partially prepay the margin loan which theseshares underlie. Following the transaction, the Company owns 39,771,809 T-Mobile shares.
Number of shares held
T-Mobile
Deutscheshares Telekom shares
Execution(millions)timing(millions)
Transaction
Procured amounta Borrowings made using 106,291,623
T-Mobile shares pledged as collateral(margin loan)$4.38 billion
Jul 2020
Number of shares held as of June 30, 2021
106.3
b Fund procurement through prepaid forward
contracts using 17,935,000 T-Mobile shares$1.81 billionc Borrowings made using 42,989,954
T-Mobile shares pledged as collateral(margin loan)$2.65 billiond Repayment of borrowings in “a” using
Sep 2021
funds acquired in “b” and “c”$(4.38) billion
e 60-day loan using 45,366,669 T-Mobile
shares pledged as collateral (bridge loan)$1.25 billion
f Sale of 45,366,669 T-Mobile shares to
Deutsche Telekom, receiving 225,000,000
Deutsche Telekom shares as consideration(45.4)
225.0
Number of shares held as of September 30, 2021
60.9
225.0
g Fund procurement through collartransactions using 225,000,000 Deutsche*1
Telekom shares
Oct 2021$3.04 billion
h Repayment of borrowings in “e” using partof the funds acquired in “g”$(1.25) billion
Number of shares held as of December 31, 2021
60.9
225.0
i Fund procurement through prepaid forward
contracts using 6,865,000 T-Mobile shares$0.68 billion
Mar 2022
j Partial repayment of borrowings in “c”
using part of the funds acquired in “i”$(0.59) billion
Number of shares held as of March 31, 2022
60.9
225.0
k Sale of 21,153,145 T-Mobile shares to
Deutsche Telekom, receiving $2.4 billion as
consideration$2.40 billion(21.2)
Apr 2022l Partial repayment of borrowings in “c”
using part of the funds acquired in “k”$(1.20) billion
Number of shares held as of June 30, 2022
39.8
225.0
Note:
1. The euro equivalent of the amount procured is €2.64 billion.

11SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2022

Impact of the asset management subsidiaries on the Company’s Condensed Interim Consolidated Statement*1of Financial Position

Cash and cash equivalents
Investments from asset management subsidiaries
Derivative financial assets in asset management subsidiaries
Other financial assets
Other
Total assets
Interest-bearing debt
Derivative financial liabilities in asset management subsidiaries
Other
Total liabilities*2
Investments from Delaware subsidiaries
Equivalent amount of cash investments by SBG in Delaware subsidiaries
Equivalent amount of loans to Delaware subsidiaries held by SBG(the amount entrusted by SBG related to asset management)
Equivalent amount of cash investments by Masayoshi Son in Delaware subsidiaries
Retained earnings
Exchange differences on translating foreign operations

Equity(Millions of yen)
June 30, 2022
14,196207,048
100
4,216
30
225,590
4,216
185
135
4,536
962,577
39,786
902,898
19,893 A(821,157) B
79,634

221,054 C

Notes:
1. SB Northstar’s statement of financial position (excluding the impact of investments made by SB Northstar in SPACs controlled by
SBIA US) is presented for reference to show the impact of SB Northstar on the Consolidated Statement of Financial Position of theCompany.
2. Investments from the Company’s subsidiaries, Delaware Project 1 L.L.C., Delaware Project 2 L.L.C., and Delaware Project 3 L.L.C.
(“Delaware subsidiaries”), to the asset management subsidiary, SB Northstar(Calculation of non-controlling interests)
Equivalent amount of cash investments by Masayoshi Son in Delaware subsidiaries*3
Cumulative loss attributable to non-controlling interests
Exchange differences on translating foreign operations

Non-controlling interests (interests of Masayoshi Son)

(Millions of yen)
19,893 A(274,598)
31,938(222,767) D

Note:
3. One-third of B in the table(Interests in equity (C above))(Millions of yen)
443,821(222,767) DInterests of SBG
Non-controlling interests (interests of Masayoshi Son)

Equity221,054

12

C

SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2022

MAIN INTEREST-BEARING DEBT AND LEASE LIABILITIES IN THIS SEGMENT
Balance as of June 30, 2022
in Condensed Interim
Consolidated Statement of
Financial Position¥699.4 billion¥6,020.4 billion¥11.7 billion¥237.5 billion

Borrower
SBG

Type

Wholly owned subsidiaries*1
conducting fund procurement

Borrowings using Arm shares(asset-backed finance)¥1,144.3 billion

Prepaid forward contracts using Alibaba
shares (floor contracts, collar contracts,and forward contracts)¥5,425.7 billion

SB Northstar

Borrowings
Corporate bonds
Lease liabilities
Commercial paper

Borrowings using Alibaba shares(margin loan)¥817.7 billion

Borrowings using SoftBank Corp. shares(margin loan)¥499.0 billion

Prepaid forward contracts using
T-Mobile shares (collar contracts)¥381.4 billion

Borrowings using T-Mobile shares(margin loan)¥117.7 billion

Collar transactions using Deutsche
Telekom shares¥433.6 billion

Borrowings¥4.2 billion

Note:
1. Borrowings of wholly owned subsidiaries conducting fund procurement are non-recourse to SBG, except for borrowings using
T-Mobile shares which SBG partially guarantees.

13SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2022(b) SoftBank Vision Funds Segment
1. Loss on investments (net) was ¥2,933.8 billion. Segment loss was ¥2,330.8 billion, after deducting change
in third-party interests.
◆ SVF1- ¥30.5 billion realized loss on investments (net), mainly due to monetization of investments in public portfolio*1
companies- ¥1,215.3 billion unrealized valuation loss on investments (net) held at the first quarter-end· ¥919.6 billion valuation loss (net) for public portfolio companies: Share prices declined in a wide range of
portfolio companies, including Coupang, SenseTime, and DoorDash, mainly caused by the global
downward trend in share prices due to growing concerns over economic recession driven by inflation andrising interest rates.
*1· ¥295.7 billion valuation loss (net) for private portfolio companies : The fair value decreased for a wide
range of companies, mainly reflecting a decline in the share prices of market comparable companies.
◆ SVF2- ¥3.3 billion realized gain on investments- ¥1,341.0 billion unrealized valuation loss on investments (net) held at the first quarter-end· ¥495.4 billion valuation loss (net) for public portfolio companies mainly due to a decline in the share pricesof AutoStore and WeWork· ¥845.6 billion valuation loss (net) for private portfolio companies: The fair value decreased for a wide rangeof companies, reflecting mark-downs of those with recent funding rounds and/or weaker performance, as
well as share price declines in market comparable companies.
◆ LatAm Funds- ¥324.9 billion loss on investments (net). ¥325.2 billion unrealized valuation loss (net) on investments held at
the first quarter-end.
2. Status of investment activities◆ SVF1- Investments before exit: Held 80 investments (including 23 public portfolio companies) as of the firstquarter-end with a fair value amounting to $66.35 billion, at an investment cost totaling $68.09 billion.
*2- Cumulative gross gain since inception was $18.58 billion, including cumulative realized gain of $17.90
billion, cumulative derivative gain of $1.48 billion, and cumulative dividend income of $0.94 billion.
◆ SVF2- Investments before exit: Held 269 investments (including 14 public portfolio companies) as of the firstquarter-end with a fair value amounting to $37.24 billion, at an investment cost totaling $48.22 billion.
*2- Cumulative gross loss since inception was $9.97 billion, including cumulative realized gain of $1.14
billion, cumulative derivative loss of $0.13 billion.
◆ LatAm Funds
5- Investments before exit: Held 88 investments (including 7 public portfolio companies ) as of the firstquarter-end with fair value amounting to $6.93 billion, at an investment cost totaling $6.92 billion. In the firstquarter, 12 early-stage portfolio companies were spun out to an external fund.
*2- Cumulative gross loss since inception was $0.07 billion.
Note:
1. Public portfolio companies are shares traded on stock exchanges or over-the-counter markets. Private portfolio companies are thosethat do not fall under the category of public portfolio companies. The same applies hereinafter.
2. Cumulative gross gain and proceeds from realized investments are before deducting third-party interests, taxes, and expenses

OVERVIEW
Segment results mainly include the results of the investment and operational activities of SoftBank Vision Fund 1(SVF1), SoftBank Vision Fund 2 (SVF2), and SoftBank Latin America Funds (LatAm Funds), as well as Special
Purpose Acquisitions Companies (SPACs) sponsored by SBIA US, and SB Opportunity Fund, which supports
underrepresented entrepreneurs.

14SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2022

Outline of principal funds in the segment
As of June 30, 2022
SVF1 and SVF2
SVF1 and SVF2 aim to maximize returns from a medium- to long-term perspective through large-scale investments
6

in high-growth-potential companies leveraging AI, particularly in “unicorns.” SVF1’s investment period has ended
and the remaining undrawn capital is reserved for follow-on investments in existing portfolio companies (including
investments in joint ventures with them), fixed distributions, and operating expenses.
SVF1

SVF2

Major limited partnership

SoftBank Vision Fund L.P.

SoftBank Vision Fund II-2 L.P.

Total committed capital(Billions of U.S. dollars)

98.6

56.0
*1

Manager

The Company: 33.1
Third-party investors: 65.5
SBIA
(The Company’s wholly owned
U.K. subsidiary)

The Company: 53.4
*2
Third-party investor (MgmtCo): 2.6
SBGA(The Company’s wholly owned
U.K. subsidiary)

Investment period

Ended on September 12, 2019

To be determined by the manager

Fund life

Until November 20, 2029 + Up to two
1-year extension option by SBIA

Until October 4, 2032 + Up to two 1-year
extension option by SBGA

Notes:
1. The Company’s committed capital to SVF1 includes approximately $8.2 billion of an obligation that is satisfied by using Arm shares(all said shares have been contributed) and $2.5 billion to be used for an incentive scheme related to SVF1.
2. A co-investment program has been introduced for SVF2 for the Company’s management. MASA USA LLC (“MgmtCo”), an
investment entity for the co-investment program, participates in this fund. The interest attributable to MgmtCo is treated as a thirdparty interest in the Company’s consolidated financial statements. For details, see “14. Related party transactions regarding a coinvestment program with restricted rights to receive distributions” in “(6) Notes to Condensed Interim Consolidated Financial
Statements” in “2. Condensed Interim Consolidated Financial Statements and Primary Notes.”

LatAm Funds
LatAm Funds invest in companies harnessing the power of data and technology to redefine industries within rapidly
developing Latin America.
LatAm Funds
Major limited liability company

SBLA Latin America Fund LLC

Total committed capital(Billions of U.S. dollars)Manager

7.6

*1

SBGA
(The Company’s wholly owned U.K. subsidiary)

Investment period

To be determined by the manager

Fund life

Until October 4, 2032
+ Up to two 1-year extensions option by SBGA

Note:
1. A co-investment program has been introduced for LatAm Funds for the Company’s management. MgmtCo participates in this fund.
The interest attributable to MgmtCo is treated as a third-party interest in the Company’s consolidated financial statements. For
details, see “14. Related party transactions regarding a co-investment program with restricted rights to receive distributions” in “(6)Notes to Condensed Interim Consolidated Financial Statements” in “2. Condensed Interim Consolidated Financial Statements andPrimary Notes.”

15

SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2022

Financing at SVF
SVF1, SVF2, and LatAm Funds may independently make borrowings that are non-recourse to SBG, for the purposeof leveraging and maintaining liquidity. Types of borrowings include asset-backed financing, which utilizes assets
held to enhance returns and distribute to limited partners, and fund-level facility, which provides bridge funding by
way of a revolving loan for the period between capital calls and arrivals of funds, thereby allowing a quick
execution of investment after the investment decision is made.
Fair value measurement of investments
SVF1, SVF2, and LatAm Funds calculate the fair value of their investments at each quarter-end in accordance withIFRS 13 Fair Value Measurement and based on the SBIA Global Valuation Policy and the International Private
Equity and Venture Capital Valuation Guidelines (IPEV Guidelines). For public portfolio companies, fair values of
portfolio companies which are traded on stock exchanges are determined using quoted prices, while fair values of
those traded on over-the-counter markets are determined using single or multiple factors such as quoted prices andother observable inputs. For private portfolio companies, one or more valuation methods are used, including themarket approach using figures of market comparable companies, the income approach using estimated future cash
flows, and the recent transactions method using prices of recent funding rounds and similar transactions.

16SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2022

FINANCIAL RESULTS(Millions of yen)Three months ended June 30
2021
2022
Gain (loss) on investments at SoftBank*1
Vision Funds
Gain (loss) on investments at SVF1, SVF2,
and LatAm Funds
Realized gain (loss) on investments
Unrealized gain (loss) on valuation of
investments
Change in valuation for the fiscal year
Reclassified to realized gain recorded in*2
the past fiscal years
Interest and dividend income frominvestments
Derivative gain (loss) on investments
Effect of foreign exchange translation
Other gain on investments
Selling, general and administrative expenses
Finance cost
Derivative gain (excluding gain (loss) on
investments)
Change in third-party interests in SVF
Other gain (loss)
Segment income (income before income tax)
(Reference)
Gain (loss) on investments at SVF1
Gain (loss) on investments at SVF2
Gain (loss) on investments at LatAm Funds

ChangeChange %610,938(2,933,845)(3,544,783)-

610,881406,642(2,935,030)(26,722)(3,545,911)(433,364)-

195,918
649,071(2,915,895)(2,881,472)(3,111,813)(3,530,543)-(453,153)(34,423)

418,730-

20,985(3,370)(9,294)
57(18,786)(4,304)415
37,650(30,478)
1,185(18,904)(15,401)(20,570)
41,020(21,184)
1,128
(118)
(11,097)(98.0%)
0.6%
257.8%

704(134,551)(2,071)

499
631,367
5,534

(205)
765,918
7,605(29.1%)-

451,930(2,330,750)(2,782,680)-(1,313,041)(1,297,053)(324,936)(Millions of yen)
(1,675,182)(1,326,473)(544,256)-

362,141
29,420219,320

A

B

Notes:
1. Unrealized gains and losses associated with the change in valuation of SoftBank Vision Funds’ investment in shares in Arm andPayPay Corporation, which are subsidiaries of the Company, and dividend income received from such investments are included insegment income of the SoftBank Vision Funds segment as “gain (loss) on investments at SoftBank Vision Funds,” but are eliminatedin consolidation and not included in “gain (loss) on investments at SoftBank Vision Funds” in the Consolidated Statement of Profit
or Loss.
2. Unrealized gains and losses on valuation of investments recorded in previous fiscal years related to the investments realized in thefiscal year are reclassified as “realized gain (loss) on investments.”

Investments and disposals by SVF1 and SVF2
(Billions of U.S. dollars)

SVF1
SVF2

Investments madeduring the first quarter
0.06
2.11

7

Disposals madeduring the first quarter
2.10
0.51

Note: Investments and disposals by SVF1 and SVF2 include those through share exchanges. Investments include new and follow-ons.

17

SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2022

Segment income
A Loss on investments at SoftBank Vision Funds: ¥2,933,845 million
Recorded investments losses of ¥1,313,041 million at SVF1, ¥1,297,053 million at SVF2, and ¥324,936 million at
LatAm Funds. Details of realized and unrealized gains/losses on investments in each fund (U.S. dollar-based) are as
follows.
SVF1(Millions of U.S. dollars)
Three-month period ended June 30, 2022
(236)
Realized loss on investments (net)(9,939)Unrealized loss on valuation of investments (net)(9,418)Change in valuation for the fiscal year
(521)
Reclassified to realized gain recorded in the past fiscal years· Realized loss on investments was ¥30,466 million ($236 million, net), mainly due to the monetization of public
portfolio companies.
· Unrealized loss on valuation of investments held at the first quarter-end was ¥1,215,309 million ($9,418 million,
net). For public portfolio companies, valuation loss (net) totaled $7,127 million due to a decline in the share pricesof a wide range of portfolio companies, mainly caused by the global downward trend in share prices due to
growing concerns over economic recession driven by inflation and rising interest rates. Of the loss, $2,274 million
was attributable to Coupang, $1,828 million to SenseTime, and $1,710 million to DoorDash. For private portfolio
companies, valuation loss (net) totaled $2,292 million due to an overall decrease in the fair value of a wide rangeof portfolio companies, mainly reflecting share price declines in market comparable companies.
As of the first quarter-end, SVF1’s cumulative gross gain since inception was $18.58 billion. See “SVF1” under“Investment performance” below for a breakdown.
SVF2(Millions of U.S. dollars)
Three-month period ended June 30, 2022
25
Realized gain on investments(10,372)
Unrealized loss on valuation of investments (net)(10,392)
Change in valuation for the fiscal year
20
Reclassified to realized loss recorded in the past fiscal years· Realized gain on investments was ¥3,257 million ($25 million), as a result of the entire sale of its interest in KE
Holdings.
· Unrealized loss on valuation of investments held at the first quarter-end was ¥1,341,008 million ($10,392 million,
net). For public portfolio companies, valuation loss (net) totaled $3,839 million mainly due to a decline in theshare prices of AutoStore and WeWork. For private portfolio companies, valuation loss (net) totaled $6,553
million mainly reflecting mark-downs of those with recent funding rounds and/or weaker performance, as well asshare price declines in market comparable companies.
As of the first quarter-end, SVF2’s cumulative gross loss since inception was $9.97 billion. See “SVF2” under18

SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2022

“Investment performance” below for a breakdown.
LatAm Funds· Realized gain on investments was ¥487 million ($4 million).
· Unrealized loss on valuation of investments held at the first quarter-end totaled ¥325,155 million ($2,520 million,
8net). This was mainly due to a decline in the share prices of Inter & Co, Inc. and other public portfolio
companies, as well as a decrease in the fair value of private portfolio companies, which reflected a decline in theshare prices of market comparable companies.
As of the first quarter-end, LatAm Funds’ cumulative gross loss since inception was $0.07 billion.
B Change in third-party interests in SVF: ¥631,367 million
This indicates the sum of distributions to third-party investors in proportion to their interests in fixed distributions
and performance-based distributions, which are based on the gains and losses on investments at each fund, net of (i)management and performance fees payable to SBIA from SVF1 and payable to SBGA from LatAm Funds, (ii)management and performance-linked management fees payable to SBGA from SVF2, and (iii) operating and otherexpenses of SVF. For details, see “(2) Third-party interests in SVF” under “4. SoftBank Vision Funds business” in“(6) Notes to Condensed Interim Consolidated Financial Statements” in “2. Condensed Interim Consolidated
Financial Statements and Primary Notes.”

19

SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2022

Investment performance
As of June 30, 2022
SVF1
(Billions of U.S. dollars)

Total ((1) + (2) + (3) + (4) below)
Cumulative
number ofinvestments
98

Cumulative
investment
cost
89.2

Cumulative
investment
return107.8

Cumulative
*1
gain
18.6

Cumulative
Cumulative
number ofinvestment
investments
cost
Effects of share exchanges
(2)
(1.7)
Uber Advanced Technologies Group and Aurora Innovation Inc.
PT Tokopedia and GoTo
Effects of dividends in kind(2)
Treasure Data, Inc.
Acetone Limited (Equity interest in Arm China JV)
Net of effects of share exchanges and
*2, 3
94
87.5
dividends in kind

Cumulative
investment
return(1.7)

Cumulative
*1
gain
-

-

-

106.1

18.6

Fair value
24.2
42.1
66.3

Cumulative
unrealized
valuation gain
*5
(loss)
(8.3)
6.6
(1.7)

Unrealized
valuation loss
recorded for the
fiscal year
Q1
(7.1)
(2.3)
(9.4)

Cumulative*1
realized gain
9.5
8.4
17.9

Realized gain
(loss)
recorded for the
fiscal year
Q1
(0.4)
0.2
(0.2)

Cumulative
derivative gain
1.5
1.5

Derivative gainrecorded for the
fiscal year
Q1-

Cumulative
income0.9Interest anddividend income
recorded for the
fiscal year
Q1-

(Reference)(1) Investments before exit (investments held at the first quarter-end)*4

Public companies
Private companies
Total

Number ofinvestments
23
57
80

Investment
cost
32.5
35.6
68.1

(2) Exited investments

Partial exit
*6
Full exit
Total

Number ofinvestments
18
18

Investment
cost
9.8
11.3
21.1

Exit price
19.3
19.7
39.0

Derivative
cost
0.0
0.0

Fair value /settlement
price
1.5
1.5

(3) Derivative gain and loss related to investment

Unsettled
SettledTotal(4) Interest and dividend income from investments
Interest anddividend
income0.9

Total
Notes:* The total and the sum of the breakdown in the table may not match as the amount of each item is rounded to the nearest unit.
1. Before deducting third-party interests, taxes, and expenses
2. For investments in which share exchanges occurred, acquisition costs of new investments and disposal prices (sale prices) ofinvestments initially held are deducted for the purpose of presenting the cumulative net investment performance. Similarly,

20

SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2022

investments acquired through dividends in kind from existing portfolio companies are deducted from the investment count.
3. In addition to the public share exchanges above, SVF1 exchanged all shares in two portfolio companies for shares in their affiliatedcompanies, which are also existing portfolio companies. Acquisition costs and disposal prices (sale prices) of these investments arealso deducted in this section.
4. Includes DiDi Global Inc., which is traded in the over-the-counter market, with its fair value measured using quoted prices and otherobservable inputs.
5. For a certain investment that was initially determined to be transferred from the Company to SVF1 but later canceled, any unrealized
valuation gains and losses incurred for the period leading up to the decision to cancel the transfer are not included in the presentation.
6. Includes disposal (sale) through share exchanges.

SVF2(Billions of U.S. dollars)

Total ((1) + (2) + (3) + (4) below)
Cumulative
number ofinvestments
271

Cumulative
investment
cost
49.6

Cumulative
investment
return39.7

Cumulative*1
loss(10.0)(1) Investments before exit (investments held at the first quarter-end)*2

Public companies
Private companies
Total

Number ofinvestments
14
255
269

Investment
*3
cost
8.2
40.0
48.2

Fair value
5.0
32.2
37.2

Cumulative
unrealized
valuation loss
(3.2)
(7.8)
(11.0)

Unrealized
valuation loss
recorded for the
fiscal year
Q1
(3.8)
(6.6)
(10.4)

Exit price
0.0
2.6
2.6

Cumulative
realized gain
*1
(loss)
(0.0)
1.2
1.1

Realized gainrecorded forthe fiscal year
Q1
0.0
0.0

Cumulative
derivative loss
(0.1)
(0.0)
(0.1)

Derivative gain
(loss)
recorded forthe fiscal year
Q1
0.3
(0.0)
0.3

Cumulative
income0.0Interest anddividend income
recorded forthe fiscal year
Q1
0.0

*3

(2) Exited investments

Partial exit
Full exit
Total

Number ofinvestments22

Investment
cost
0.0
1.4
1.4

(3) Derivative gain and loss related to investment

Unsettled
Settled
Total

Derivative
cost-

Fair value /settlement
price
(0.1)
(0.0)
(0.1)

(4) Interest and dividend income from investments
Interest anddividend
income0.0

Total
Notes:* The total and the sum of the breakdown in the table may not match as the amount of each item is rounded to the nearest unit.
1. Before deducting taxes and expenses
2. Includes Zhangmen Education Inc., which is traded in the over-the-counter market, with its fair value measured using quoted prices
and other observable inputs.
3. The investment cost and fair value of investments before exit in SVF2 include those related to a minor SVF2 ownership percentage
in another portfolio company received as part of the consideration for SVF2’s investment in a portfolio company.

21

SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2022

Capital deployment
As of June 30, 2022
SVF1
(Billions of U.S. dollars)
Total

The Company

Third-party investors

Return of capital (non-recallable) (C)Outstanding capital (D) = (B) – (C)

98.6
87.1
31.8
55.3

33.1
29.8
8.9
20.9

65.5
57.3
22.9
34.4

Remaining committed capital (E) = (A) – (B)

11.5

3.3

8.2

Committed capital (A)9Drawn capital (B)Note: The Company’s committed capital to SVF1 includes approximately $8.2 billion of an obligation that is satisfied by using Arm
shares (all said shares have been contributed) and $2.5 billion to be used for an incentive scheme related to SVF1.

SVF2(Billions of U.S. dollars)
Total
Committed capital (A)Drawn capital (B)Remaining committed capital (C) = (A) – (B)

56.0
49.6
6.4

Note: Remaining committed capital includes recallable return of capital.

(Reference: Breakdown of committed capital as of June 30, 2022)
Total committed capital
The Company’s equity commitment to investments outside the scope of the Program
The Company’s preferred equity commitment to SVF2 LLC*1
The Company’s equity commitment to SVF2 LLC
MgmtCo’s equity commitment to SVF2 LLC

56.0
8.4
32.6
12.4
2.6

Notes:*As of the first quarter-end, no capital has been paid by MgmtCo.
1. SVF2 LLC (SVF II Investment Holdings LLC) is a subsidiary of the Company established under SVF2 and indirectly holds
investments subject to the co-investment program.

As of the first quarter-end, total committed capital for SoftBank Latin America Funds is $7.6 billion, with drawn
capital totaling $7.1 billion.
For a complete list of portfolio companies and historical quarterly results of SVF1, SVF2 and LatAm Funds, see the Data Sheets
under “Earnings Results Briefing” on the Company’s website at https://group.softbank/en/ir/presentations/.

22SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2022(c) SoftBank Segment
Segment income decreased by 16.8% yoy mainly due to decreases in income in the consumer, enterprise,
and Yahoo! JAPAN/ LINE businesses, as well as a decline in gain on investments.
(Millions of yen)Three months ended June 30
2021
2022
Net sales
Segment income (income before income tax)
Depreciation and amortization
Gain on investments
Finance cost*1
Loss on equity method investments

ChangeChange %1,356,570
270,954(184,340)
15,262(15,553)(12,339)

1,362,121
225,389(183,311)
1,133(15,341)(13,536)

5,551(45,565)
1,029(14,129)212(1,197)0.4%(16.8%)(0.6%)(92.6%)(1.4%)
-

(99)

901

1,000

-

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

Note:
1. Includes losses on equity method investments related to PayPay Corporation of ¥3,185 million for the first quarter and ¥5,800
million for the same period of the previous fiscal year. At SoftBank Corp., PayPay Corporation is classified as an equity method
associate; however, PayPay Corporation has consistently been classified as a subsidiary of SBG since its founding in June 2018 with
its financial results included in “Other.” For this reason, loss on equity method investments related to PayPay Corporation recognizedin the SoftBank segment is eliminated in “Reconciliations” in the segment information. See “(e) Other” for the treatment of financial
results of PayPay Corporation from the three months ending December 31, 2022.

OVERVIEW
Segment results include the results of business activities conducted by SoftBank Corp. mainly in Japan, such asprovision of mobile services and sale of mobile devices, as well as provision of broadband and e-commerce
services. Under its Beyond Carrier strategy, SoftBank Corp. aims to strengthen its earnings base by going beyond
the confines of a conventional telecommunications carrier, while further growing the telecommunications business,and expanding its businesses in three fields: telecommunications business, Yahoo! JAPAN/ LINE business, and new
businesses.
FINANCIAL RESULTS
Segment income was ¥225,389 million, a decrease of ¥45,565 million (16.8%) year on year. This was mainly due todecreases in income in the consumer, enterprise, and Yahoo! JAPAN/ LINE businesses, and a decline in gain on
investments.
Income in the consumer business decreased mainly due to the impact of a fall in mobile service charges. Incomein the enterprise business decreased mainly reflecting a decline following a reversal of one-time expenses in thesame period of the previous fiscal year, despite an increase in sales for cloud services and the like as digitization ofenterprises accelerated in the first quarter. Income in the Yahoo! JAPAN/ LINE business fell, mainly due to anincrease in personnel expenses associated with a reinforcement of its workforce for further growth, despite anincrease in sales centered on commerce and advertising-related services.
For more information on SoftBank Corp.’s financial results and business operations, please refer to its website at https://www.softbank.jp/en/corp/ir/.

23

SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2022(d) Arm Segment
1. Continuing revenue and segment income growth◆ Net sales increased by 24.9% yoy (including impact of the weaker yen. 6.4% of U.S. dollar-based
growth).
- Technology royalty revenue increased by 22.0% yoy (U.S. dollar-based) due to strong industry growth andArm’s customers’ market share gains.
- Technology non-royalty revenue decreased by 12.5% yoy (U.S. dollar-based) primarily due to the verystrong product licensing revenue reported in the same period of the previous fiscal year. Nevertheless, Arm
saw robust licensing activity during the first quarter including the signing of multiple agreements for Armv9
technologies.
◆ The increase in segment income is due to the revenue growth combined with improved operational
efficiency following a recent restructuring.
2. Arm makes progress in its mobile and server strategy.
- To maintain its more than 95% share of the smartphone market, Arm announced its next generation CPU andGPU IP for smartphones and mobile computers.
- Google joined Alibaba, Amazon and Microsoft in deploying server chips based on Arm’s Neoverse
technology for servers.
3. Arm continued its preparations for a potential public offering.
(Millions of yen)Three months ended June 30
2021
2022
Net sales*1
Segment income (income before income tax)

74,278
8,781

92,751
29,846

ChangeChange %18,47321,06524.9%
239.9%Note:
1. Segment income included amortization expenses of ¥14,630 million for the first quarter and ¥12,472 million for the same period of
the previous fiscal year. These expenses are related to intangible assets recognized in the purchase price allocation at the time of theacquisition of Arm.

OVERVIEW
Arm’s operations primarily consist of licensing of semiconductor intellectual property (IP), including the design ofenergy-efficient microprocessors and associated technologies. Since its acquisition by the Company in 2016, Arm
has accelerated investment in R&D by hiring more engineers. With the expansion of its engineering capability, Armis developing new technologies that may help it maintain or increase its share of the existing markets and expand
into new markets.
Industry trends and their impact
Semiconductor industry trends can have a significant impact on Arm’s financial results, both positively andnegatively. The semiconductor industry has grown very strongly due to long-term trends such as more products andservices depending on increasing amounts of embedded intelligence, such as cars providing more driver information
and assistance, and smartphones improving camera technology generation after generation for better photography.
Some markets have shown particularly strong growth in the first quarter including 5G smartphones and networking
equipment as well as embedded and automotive applications, where Arm has good exposure. This growth has
benefited Arm’s technology royalty revenue as it grows with industry sales. Industry growth also accelerated Arm’s
customers’ design activity, creating new opportunities for Arm to license its latest technologies and thus driving
non-royalty revenue (technology licensing revenue and software and services revenue). The industry is vulnerable toother external factors, including trade disputes and sanctions against specific companies, as well as the impact of24

SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2022

temporary component shortages. If shipments of consumer electronic devices weaken, it may lead to lower Arm’s
technology royalty revenue, and if Arm’s customers facing reduced revenues choose to delay licensing decisions, it
may lead to lower technology non-royalty revenue. However, it is difficult to anticipate when these events may
occur and the impact on the semiconductor industry in general or Arm specifically.
Arm is expecting that, as consumer and enterprise electronics become more advanced, its technology will befurther utilized, and opportunities will expand over the long term.
FINANCIAL RESULTS
Net sales in U.S. dollars
Net sales in this section are presented in U.S. dollars as Arm’s revenue is primarily based in U.S. dollars.
(Millions of U.S. dollars)
Three months ended June 30
2021
2022

Change Change %Technology royalty
Technology non-royalty

371
304

453
266

82
(38)

22.0%
(12.5%)

Total net sales

675

719

44

6.4%

Net sales increased by $44 million (6.4%) year on year due to an increase in technology royalty revenue while
technology non-royalty revenue decreased.
Technology royalty revenue
Technology royalty revenue increased by $82 million (22.0%) year on year. Royalty revenues were driven by thestrong shipments of Arm-based 5G high-end smartphones, deployment of networking equipment into 5G basestations, and Arm’s customers gaining share in multiple markets such as automotive, IoT, and servers. In addition,
Arm’s customers are benefitting from the very high demand for computer chips enabling prices to increase, and as
Arm’s royalty revenue is often based on the price of the chips, Arm is also benefiting from higher chip prices.
Technology non-royalty revenue
Technology non-royalty revenue decreased by $38 million (12.5%) year on year. This decrease is primarily due to avery strong technology non-royalty revenue in the same period of the previous fiscal year, related to some highvalue deals that were signed in the period. Nevertheless, Arm continued to see very robust licensing activity due tothe availability of more Arm technology following the accelerated R&D spending since Arm was acquired by theCompany. Over the past few years, Arm has increased investment in R&D, which has now resulted in a productportfolio that has expanded the breadth of Arm technology to include processors optimized for servers, automotive
electronics, and AI acceleration. This has led to a wider range of customers licensing Arm technology, as well as
existing customers having more Arm technology to choose from, both of which are helping to drive licensing
revenues. This included licenses for processors used by customers intending to build Arm-based servers and PC
chips, smartphones, networking equipment, autonomous systems such as industrial robotics and self-driving
vehicles and for AI-enabled microcontrollers. In addition, over the past year, strong industry demand for Arm-based
chips has encouraged Arm’s customers to invest in new R&D projects to develop more chips and therefore
increased demand for Arm processor licenses.
Segment income
Segment income was increased by ¥21,065 million (239.9%) year on year, to ¥29,846 million. This was due to the25SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2022

combination of revenue growth and improved operational efficiency, including a headcount reduction, following the
global business restructuring of its non-engineering functions announced last quarter.
OPERATIONSRoyalty units

10(Billion)
Three-month period ended March 31
2021
2022
Royalty units as reported by Arm’s licensees

6.9

7.4

Change Change %
0.5

6.8%

Arm’s licensees reported shipments of 7.4 billion Arm-based chips in the three-month period ended March 31,
2022. Arm’s unit shipments increased by 6.8% year on year.
TECHNOLOGY DEVELOPMENT
Arm considers the following as its primary areas for increased investment and is evolving technology in both its
mobile business and other businesses with strong growth potential.
Arm’s primary investment areas and main developments
Mobile computing
Opportunity· Arm already has over 95% share of the main chips in mobile devices and, over time,
has been successfully increasing royalties per chip.
Main developments· Arm announced its annual update of technology for smartphones in June 2022,
including the Arm Cortex-X3 and Cortex-A715 CPUs, both based on Armv9
technology, and Arm Immortalis-G715 GPU which brings hardware-based ray
tracing support to mobile devices, delivering more realistic and immersive gaming
experiences.
Infrastructure
Opportunity· Arm has a growing share in networking infrastructure and a nascent share in data
center servers.
Main developments· Arm announced adoption of Arm Neoverse-based chips by Google Cloud servers inJuly 2022. Google Cloud customers can now run workloads on the Ampere Altrachip, based on Arm Neoverse N1 CPU. Google joins Alibaba, Amazon, andMicrosoft in deploying server chips based on Arm technology.
Automotive
Opportunity· As vehicles become smarter, they require more computational capability. Arm iswell-positioned to gain market share by providing energy efficiency and Armprocessor technology has already been licensed by most companies that develop
automotive chips.
Main developments· Arm announced in July 2022 that it is working with Cruise LLC to scale out theirautonomous driving platform.
IoT
Opportunity

Main developments· For IoT to reach its full potential, it must be secure against hacking and robust
against faults. Arm has developed technology to secure and manage the data in IoT
device networks.
· Arm announced in June 2022 the Arm Mali-C55 Image Signal Processor (ISP), its
smallest and most configurable image signal processor designed for IoT devices
such as home security camera and drones, and which is already seeing success withlicensees such as Renesas Electronics Corp.

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

26

SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2022(e) Other(Millions of yen)Three months ended June 30
2021
2022

ChangeChange %Net sales
Segment income (income before income tax)
Depreciation and amortization
Loss on investments
Finance cost
Income (loss) on equity method investments

54,21733,158(8,930)(1,030)(4,105)2,040

125,419(25,635)(14,957)(27,705)(4,166)(3,707)

71,202(58,793)(6,027)(26,675)(61)(5,747)131.3%
67.5%
1.5%
-

Derivative loss
(excluding gain (loss) on investments)(3,479)(14,362)(10,883)-

Segment loss was ¥25,635 million. A U.K. subsidiary engaged in the renewable energy business recorded a loss
before income tax of ¥18,722 million, mainly due to a decrease in the fair value of one of its investees, and PayPay
Corporation recorded a loss before income tax of ¥6,242 million. On the other hand, Fortress Investment Group LLC
recorded income before income tax of ¥1,288 million.
An overview and business results of PayPay Corporation are as follows.
PayPay Corporation, which is engaged in smartphone payment services in Japan, recorded loss before income tax of¥6,242 million. This was mainly due to recording expenses associated with campaigns aimed at acquiring users andpromoting their use, as well as for the retention and expansion of stores where the service is available. Nonetheless,loss before income tax narrowed year on year as revenues increased, mainly due to an increase in payment fees,
following the introduction of payment fees to small and medium-sized merchants in October 2021, and growth ingross merchandise volume. PayPay Corporation’s payment services continued to see strong growth, with thenumber of payments for the first quarter reaching 1.11 billion, a 1.4-fold increase year on year.
Results of PayPay Corporation included in “Other”(Millions of yen)

Net sales
Loss before income tax

Three months ended June 30
2021
2022

ChangeChange %11,211(10,420)

12,7124,178

113.4%-

23,923(6,242)

Note: In the fourth quarter of the previous fiscal year, a lump-sum deduction of ¥6,399 million was made from net sales, including a
portion of marketing costs for stores, which had been recorded as expenses in the first three quarters of the previous fiscal year.
Since no retrospective adjustments have been made to the net sales for the first three quarters of the previous fiscal year, ¥145
million of the abovementioned expenses are included in net sales for the same period of the previous fiscal year.

Since PayPay Corporation is expected to become a subsidiary of SoftBank Corp. and Z Holdings Corporation in
October 2022, the results of PayPay Corporation will be accounted for in the SoftBank segment instead of Other
segment starting from the three months ending December 31, 2022, and the results for the previous fiscal year will
be retroactively adjusted and presented. PayPay Corporation has been consolidated by SBG as a subsidiary since its
founding in June 2018 and will continue as such.

27

SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2022

(2) Overview of Financial Position
1. Status of investment assets◆ Carrying amount of investments from SVF (FVTPL) totaled ¥13,471.1 billion, a decrease of ¥1,438.6*1billion from the previous fiscal year-end*2- Decrease at SVF1 of ¥693.9 billion : The balance decreased by $9.42 billion due to a decrease in the fairvalue of investments held at the first quarter-end and by $2.86 billion due to sales of investments.
These were partially offset by an increase of $0.06 billion due to follow-on investments in existing
portfolio companies.
*2- Decrease at SVF2 of ¥548.5 billion : The balance decreased by $10.28 billion due to a decrease in thefair value of investments held at the first quarter-end and by $0.46 billion due to sales of investments.
These were partially offset by an increase of $2.11 billion due to new and follow-on investments.
*2- Decrease at LatAm Funds of ¥196.2 billion◆ Carrying amount of investment securities of ¥2,939.8 billion, a decrease of ¥145.6 billion from theprevious fiscal year-end- The balance of T-Mobile shares decreased by ¥225.7 billion mainly due to the sales of shares to Deutsche
Telekom.
2. Changes in liabilities associated with fund procurement◆ Interest-bearing debt increased by ¥1,425.9 billion from the previous fiscal year-end at wholly owned
subsidiaries conducting fund procurement.
- Financial liabilities relating to sale of shares by prepaid forward contracts increased by ¥1,270.5 billion.
◆ Borrowings at SVF1 increased by ¥274.0 billion from the previous fiscal year-end, due toasset-backed finance.
3. Changes in equity◆ Total equity decreased by ¥1,533.2 billion from the previous fiscal year-end.
- ¥3,162.7 billion net loss attributable to owners of the parent reduced retained earnings.
- Continued share repurchase: ¥293.5 billion worth of shares were repurchased in the first quarter.
- ¥2,096.7 billion increase in exchange differences from the translation of foreign operations due tothe weaker yen◆ Ratio of equity attributable to owners of the parent (equity ratio) was 18.2% at the first quarter-end,

down from 21.0% at the previous fiscal year-end.
Notes:
1. Investments from SVF (FVTPL) do not include their investments in the Company’s subsidiaries or investments that are transferredfrom the Company to the funds and continue to be accounted for using the equity method (and included in “investments accounted
for using the equity method”) prior to and after the transfer.
2. Includes increases in the carrying amount of investments at SVF1, SVF2, and LatAm Funds due to an 11.7% depreciation of the yen
against the U.S. dollar in the foreign currency exchange rate used for translations at the first quarter-end.

(Millions of yen)March 31, 2022

June 30, 2022

ChangeChange %Total assets
Total liabilities

47,544,670
35,836,908

46,976,341
36,801,743(568,329)
964,835(1.2%)
2.7%

Total equity

11,707,762

10,174,598(1,533,164)(13.1%)

28

SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2022(a) Assets(Millions of yen)March 31, 2022

June 30, 2022

ChangeCash and cash equivalents
Trade and other receivables
Derivative financial assets
Other financial assets
Inventories
Other current assets
Total current assets
Property, plant and equipment
Right-of-use assets
Goodwill
Intangible assets
Costs to obtain contracts

5,169,001
2,361,149
1,050,446
971,125
142,767
334,101
10,028,589
1,842,749
914,743
4,897,913
2,427,580
330,8996,070,664
2,349,103
722,335
744,241
142,221369,647
10,398,211
1,897,474
927,491
5,241,966
2,467,706
344,558

901,663(12,046)(328,111) A(226,884) B(546)
35,546369,62254,725
12,748344,053 C

Investments accounted for using
the equity method
Investments from SVF (FVTPL)
SVF1
SVF2
LatAm Funds
Investment securities
Derivative financial assets
Other financial assets
Deferred tax assets
Other non-current assets
Total non-current assets

5,234,519
14,909,614
8,365,274
5,401,117
1,143,223
3,085,369
1,333,787
2,230,615
163,255
145,038
37,516,081

5,282,289
13,471,055
7,671,376
4,852,612
947,067
2,939,798
1,491,976
2,211,645
148,342
153,830
36,578,130

47,770(1,438,559) D(693,898)(548,505)(196,156)(145,571) E
158,189 F(18,970)(14,913)
8,792(937,951)

Total assets

47,544,670

46,976,341(568,329)

29

40,126
13,659

SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2022

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

Main reasons for changes from the previous fiscal year-end

B Other financial assets

At SB Northstar, with the downsizing of the business, restricted cash
decreased by ¥127,258 million, investments from asset management
subsidiaries decreased by ¥49,366 million, and derivative financial assets inasset management subsidiaries decreased by ¥48,366 million.

Non-current assets
C Goodwill

D Investments from SVF(FVTPL)

Derivative financial assets related to prepaid forward contracts using Alibaba
shares decreased by ¥351,175 million, mainly due to the recording ofderivative loss and settling in kind by delivering Alibaba shares.

Goodwill of Arm increased by ¥338,379 million due to the weaker yen
against the U.S. dollar.
· The carrying amount of investments at SVF1 decreased by ¥693.9 billion.
This reflected a decrease of $9.42 billion due to a decrease in the fair valueof portfolio companies held at the first quarter-end and a decrease of $2.86
billion due to the sale of investments. These were partially offset by anincrease of $0.06 billion due to follow-on investments in existing portfolio
companies.
· The carrying amount of investments at SVF2 decreased by ¥548.5 billion.
This reflected a decrease of $10.28 billion due to a decrease in the fairvalue of portfolio companies held at the first quarter-end and a decrease of$0.46 billion due to the sale of investments. These were partially offset by
an increase of $2.11 billion due to new investments and follow-on
investments in existing portfolio companies.
· The carrying amount of investments at LatAm Funds decreased by ¥196.2
billion. This reflected a decrease of $2.52 billion due to a decrease in thefair value of portfolio companies held at the first quarter-end and adecrease of $0.04 billion due to the sale of investments. These werepartially offset by an increase of $0.15 billion due to follow-on
investments in existing portfolio companies.
The first quarter-end balance also included an increase in the carrying
amount at each fund due to an 11.7% depreciation of the yen against the
U.S. dollar in the foreign currency exchange rate used for translations at
the first quarter-end.
For details of the status of investments at SVF1, SVF2, and LatAm Funds,
see “(b) SoftBank Vision Funds Segment” under “b. Results by Segment”
in “(1) Overview of Results of Operations.”

30

SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2022

Components
E Investment securities

Main reasons for changes from the previous fiscal year-end· The carrying amount of T-Mobile shares decreased by ¥225,694 million(balance at the first quarter-end: ¥731,361 million). This mainly reflected
the sale to Deutsche Telekom of 21.2 million T-Mobile shares held by theCompany due to Deutsche Telekom’s partial exercise of call options for TMobile shares.
· The carrying amount of Deutsche Telekom shares increased by ¥89,714
million (balance at the first quarter-end: ¥607,674 million).
During the first quarter, the Latin America Funds segment was integrated
into the SoftBank Vision Funds segment. As a result, the carrying amountof investments from SoftBank Latin America Funds is included ininvestments from SVF (FVTPL). For details, see “1. Changes inpresentation” under “(6) Notes to Condensed Interim Consolidated
Financial Statements” in “2. Condensed Interim Consolidated Financial
Statements and Primary Notes.”

F Derivative financial assets

The fair value of the contingent consideration related to T-Mobile shares
increased by ¥144,470 million (balance at the first quarter-end: ¥735,899
million).

(Reference) Cash and cash equivalents by entity
Consolidated cash and cash equivalents increased by ¥901.7 billion to ¥6,070.7 billion from the previous fiscal yearend. Of this, cash and cash equivalents of SBG increased by ¥1,075.4 billion to ¥3,578.0 billion. For details, see“(3) Overview of Cash Flows.”(Millions of yen)March 31, 2022

June 30, 2022

Change2,569,355
2,502,626

3,615,289
3,578,016

1,045,934
1,075,390

26,27140,45823,077
14,196(3,194)(26,262)

47,754150,462
1,890
24,34054,537
16,922
1,701
32,6006,783(133,540)
(189)
8,260

Others318,661
383,093845,038
828,408

287,144443,406
856,658
762,407(31,517)60,313
11,620(66,001)

Total

5,169,001

6,070,664

901,663

SoftBank Group Corp. and wholly owned
subsidiaries conducting fund procurement, etc.
SoftBank Group Corp.
Wholly owned subsidiaries conducting fundprocurement
SB Northstar
SoftBank Vision Funds segment
SVF1
SVF2
LatAm Funds
SBIA, SBGA, SBLA Advisers Corp.
SoftBank segment
SoftBank Corp.
*1
Z Holdings Corporation*2
Others

Notes:
1. Includes Yahoo Japan Corporation and LINE Corporation.
2. Includes PayPay Bank Corporation, whose balance of cash and cash equivalents was ¥347,185 million at the first quarter-end.

31

SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2022(b) Liabilities(Millions of yen)March 31, 2022

June 30, 2022

ChangeInterest-bearing debt
Lease liabilities
Deposits for banking business
Trade and other payables
Derivative financial liabilities
Other financial liabilities
Income taxes payable
Provisions
Other current liabilities
Total current liabilities
Interest-bearing debt
Lease liabilities
Third-party interests in SVF
Derivative financial liabilities
Other financial liabilities
Provisions
Deferred tax liabilities
Other non-current liabilities
Total non-current liabilities

7,328,862
240,241
1,331,385
1,968,864
119,592554,814
183,388
34,056620,260
12,381,462
14,128,570
625,9075,640,498
174,003
129,849
107,9612,436,034
212,624
23,455,446

6,587,844
231,875
1,418,494
1,787,154
69,722399,699
125,433
38,572547,915
11,206,708
16,386,221
644,935
5,368,114
452,808
158,235
99,9882,246,312
238,422
25,595,035(741,018)(8,366)
87,109(181,710)(49,870)(155,115)(57,955)
4,516(72,345)(1,174,754)
2,257,651
19,028(272,384)
278,805 A
28,386(7,973)(189,722) B
25,7982,139,589

Total liabilities

35,836,908

36,801,743

964,835

Reasons for changes by primary component
Components
Main reasons for changes from the previous fiscal year-end*See “(Reference)” on the following page for a breakdown of interest-bearing debt.
Non-current liabilities
A Derivative financial liabilities

B Deferred tax liabilities

Derivative financial liabilities related to prepaid forward contracts using
Alibaba shares increased by ¥308,747 million, mainly due to the recordingof derivative loss.
Deferred tax liabilities related to prepaid forward contracts using Alibaba
shares decreased due to a decrease in the fair value of derivative financial
assets and an increase in the fair value of derivative financial liabilities.

32

SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2022

(Reference) Interest-bearing debt and lease liabilities (total of current liabilities and non-current liabilities)(Millions of yen)March 31, 2022

June 30, 2022

Change14,869,325
7,442,237
1,255,116
5,918,265
12,056
256,800

15,792,651
6,968,959
699,351
6,020,384
11,724
237,500

923,326(473,278)(555,765) A
102,119 B(332)(19,300)

7,393,573
2,857,000

8,819,476
3,012,402

1,425,903
155,4024,536,573
33,51533,5155,807,074
4,216
4,216

1,270,501 D(29,299)(29,299)

336,535
336,535
731,540
731,540
9,179
9,179
759
759

610,524
610,524792,632
792,632
10,251
10,251894
894

273,989
273,989
61,092
61,092
1,072
1,072
135
135

4,236,453
3,085,954
469,252
559,846
121,401
1,170,856
481,678
603,977
35,20150,000592,116

4,341,917
3,100,580
469,282542,054
230,001
1,252,402
544,615604,063
59,72444,000625,845

105,464
14,62630(17,792)
108,600
81,54662,93786
24,523(6,000)33,729286,988
89,829323,937
99,822

36,9499,993

22,323,580

23,850,875

1,527,295

SoftBank Group Corp. and wholly owned
subsidiaries conducting fund procurement, etc.
SoftBank Group Corp.
Borrowings
Corporate bonds
Lease liabilities
Commercial paper
Wholly owned subsidiaries conducting
fund procurement*1
Borrowings
Financial liabilities relating to sale of sharesby prepaid forward contracts
SB Northstar
Borrowings
SoftBank Vision Funds segment
SVF1
Borrowings
SVF2
Borrowings
LatAm Funds
Borrowings
SBIA, SBLA Advisers Corp.
Lease liabilities
SoftBank segment
SoftBank Corp.
Borrowings
Corporate bonds
Lease liabilities
Commercial paper*2
Z Holdings Corporation
Borrowings
Corporate bonds
Lease liabilities
Commercial paper
Other
OthersOther interest-bearing debt
Lease liabilities
Total

C

E

Notes:
1. The interest-bearing debt of wholly owned subsidiaries conducting fund procurement is non-recourse to SBG. However, $0.87 billionof borrowings made using T-Mobile shares is exceptionally guaranteed by SBG up to a limit of $0.26 billion. As a precondition for
SBG to fulfill its guarantee obligations, the lenders are obligated to first recover the amount to the maximum extent possible from
Alibaba shares that have been pledged as collateral.
2. Includes Yahoo Japan Corporation and LINE Corporation.

33

SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2022

Reasons for changes from the previous fiscal year-end at core companies
Components

Details

SBG and wholly owned subsidiaries conducting fund procurement, etc.
SBG
A Borrowings
SBG repaid borrowings of $4.5 billion made using commitment lines.
B Corporate bonds· Foreign currency-denominated straight bonds of $0.27 billion (face value) and €0.22
billion (face value) were repurchased.
· The carrying amount of foreign currency-denominated straight bonds increased due to an
11.7% depreciation of the yen against the U.S. dollar in the foreign currency exchange
rate used for translations at the first quarter-end.

Wholly owned subsidiaries conducting fund procurement
C Borrowings
Through Arm shares· $0.5 billion (net) was borrowed through asset-backed finance.
Through T-Mobile shares· Borrowings of $1.2 billion made through a margin loan in the previous fiscal year was
repaid.
D Financial liabilities
relating to sale ofshares by prepaid
forward contracts

Through Alibaba shares· $10.49 billion was raised by concluding prepaid forward contracts (forward contracts).
· Certain prepaid forward contracts were settled in kind by delivering Alibaba shares.
Consequently, financial liabilities relating to sale of shares by prepaid forward contractsof ¥604,888 million were derecognized.
For details, see “(2) Transactions for sale of Alibaba shares by prepaid forward
contracts” under “5. Interest-bearing debt” in “(6) Notes to Condensed Interim
Consolidated Financial Statements” in “2. Condensed Interim Consolidated Financial
Statements and Primary Notes.”*3

SoftBank Vision Funds segment
SVF1
E Borrowings
Borrowings made through asset-backed finance increased by $1.72 billion. In addition, thebalance of the borrowings increased due to an 11.7% depreciation of the yen against the
U.S. dollar in the foreign currency exchange rate used for translations at the first quarterend.
Note:
3. For details of borrowings at SVF1, SVF2, and LatAm Funds, see “Financing at SVF” under “OVERVIEW” in “(b) SoftBank Vision
Funds Segment” in “b. Results by Segment” in “(1) Overview of Results of Operations” in “1. Results of Operations.”

34

SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2022(c) Equity(Millions of yen)March 31, 2022

June 30, 2022

ChangeCommon stock
Capital surplus
Other equity instruments
Retained earnings
Treasury stock
Accumulated other comprehensive income

238,772
2,634,574
496,876
4,515,704(406,410)
2,496,158

238,7722,644,872
496,876
1,318,266(698,662)
4,562,289

10,298(3,197,438) A(292,252) B
2,066,131 C

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

9,975,674
1,732,088

8,562,413
1,612,185(1,413,261)(119,903)

Total equity

11,707,762

10,174,598(1,533,164)

Reasons for changes by primary component
Components
A Retained earnings

Main reasons for changes from the previous fiscal year-end
Net loss attributable to owners of the parent of ¥3,162,700 million was recorded.

B Treasury stock

SBG acquired 56,297,800 of its own shares for ¥293,484 million in the firstquarter in accordance with a Board resolution on November 8, 2021 torepurchase up to ¥1 trillion of its own shares.

C Accumulated othercomprehensive income

Exchange differences from the translation of foreign operations, which arose fromtranslating foreign subsidiaries and associates into yen, increased by ¥2,096,694
million due to the weaker yen against the U.S. dollar and the Chinese yuan.

35

SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2022

(3) Overview of Cash Flows
1. Cash flows from investing activities◆ Net cash inflow of ¥286.1 billion from investing activities (net cash outflows of ¥975.8 billion in thesame period of the previous fiscal year); due to significant curbs on new investments at SVF2 andfurther sales of SVF1 investments and T-Mobile shares, etc.
- Payments for acquisition of investments by SVF: ¥306.4 billionof which ¥279.6 billion was by SVF2
- Proceeds from sale of investments by SVF: ¥344.2 billionof which ¥270.2 billion was by SVF1; mainly due to partial sales of public portfolio companies- Proceeds from sales/redemption of investments: ¥364.5 billionof which ¥309.7 billion was from sale of T-Mobile shares; due to partial sale of the shares as a result of
Deutsche Telekom’s partial exercise of call options
2. Cash flows from financing activities◆ Net cash inflow of ¥175.9 billion from financing activities; due to continued monetization throughasset-backed finance, share repurchases and dividends, and distribution and repayments to thirdparty investors at SVF.
- Proceeds from interest-bearing debt: ¥2,728.9 billionof which proceeds from borrowings through asset-backed finance: ¥2,115.0 billion· Procured $10.49 billion using Alibaba shares, $1.4 billion using Arm shares, and $4.5 billion throughasset-backed finance at SVF1.
- Payments for interest-bearing debt: ¥1,732.6 billionof which repayment of borrowings made through asset-backed finance: ¥650.1 billion· Repaid margin loan of $1.2 billion borrowed through T-Mobile shares in the previous fiscal year,
borrowings of $0.9 billion made through asset-backed finance using Arm shares, and borrowings of$2.94 billion at SVF1 and SVF2 made through asset-backed finance.
- Repurchase of treasury stock of ¥293.5 billion- Cash dividends and cash dividends paid to non-controlling interests of ¥174.6 billion- Distribution and repayments to third-party investors at SVF of ¥255.3 billion
3. Net increase in cash and cash equivalents at the first quarter-end◆ The balance of cash and cash equivalents at the first quarter-end stood at ¥6,070.7 billion, an increaseof ¥901.7 billion yoy; due to cash inflows from each of operating, investing, and financing activities, aswell as the effect of exchange rate changes on cash and cash equivalents of ¥298.8 billion.

(Millions of yen)Three months ended June 30
2021
2022
Cash flows from operating activities
Cash flows from investing activities
Cash flows from financing activities
Effect of exchange rate changes on cash andcash equivalents
Increase in cash and cash equivalents
Cash and cash equivalents at the beginningof the period
Cash and cash equivalents at the end of theperiod36

Change507,438(975,819)
786,091

140,805
286,098
175,926(366,633)
1,261,917(610,165)(373)
317,337

298,834
901,663299,207584,326

4,662,725

5,169,001

506,276

4,980,062

6,070,664

1,090,602

SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2022

(a) Cash Flows from Operating Activities
Cash flows from operating activities resulted in a net inflow of ¥140,805 million, a ¥366,633 million decrease year
on year. This was mainly due to a decrease in cash inflows from sales of investments in conjunction with thedownsizing of the business of SB Northstar, among others, from ¥735,019 million to ¥71,784 million, while theamount of income taxes paid decreased from ¥651,515 million to ¥201,600 million. In the same period of theprevious fiscal year, the Company recorded payment of corporate taxes on taxable income at SBGJ, which included
gains on sale of SoftBank Corp. shares in the fiscal year ended March 31, 2021, as well as payment of withholding
income tax on dividends from SBGJ to SBG.
(b) Cash Flows from Investing Activities
Primary components
Components
Proceeds from sales/redemptionof investments¥364,526 million

Primary details
In the first quarter, the Company sold 21.2 million shares of T-Mobile for¥309,696 million ($2.4 billion) to Deutsche Telekom due to Deutsche
Telekom’s partial exercise of its call options for the shares.

Payments for acquisition of
investments by SVF¥(306,365) million· SVF2 made investments totaling ¥279,572 million ($2.17 billion).
· LatAm Funds made investments totaling ¥19,696 million ($0.15 billion).
· SVF1 made investments totaling ¥7,097 million ($0.06 billion).

Proceeds from sales of investments · SVF1 sold a portion of its interests in public portfolio companies for¥270,160 million ($2.09 billion).
by SVF· SVF2 sold all of its shares in KE Holdings for ¥73,595 million ($0.57¥344,210 million
billion).
Purchase of property, plant andequipment, and intangible assets¥(170,156) million

SoftBank Corp. purchased property, plant and equipment, such as
telecommunications equipment, and intangible assets such as software.

37

SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2022(c) Cash Flows from Financing Activities
Primary components
Components
Primary details
Proceeds (repayment) in shortSoftBank Corp. issued commercial paper of ¥63,000 million, while SBG andterm interest-bearing debt, net
PayPay Card Corporation repaid commercial paper of ¥34,800 million (net)*1¥15,630 millionand ¥16,000 million (net), respectively.
(Proceeds and payments forinterest-bearing debt (current
liabilities) with fast turnover andshort maturities)
Proceeds from interest-bearing debt (total of A through C below)¥2,728,946 million
A Proceeds from borrowings · SBG made short-term borrowings of ¥111,350 million.
*2¥1,375,246 million· Wholly owned subsidiaries conducting fund procurement borrowed¥180,656 million ($1.4 billion) through asset-backed finance using Arm
shares.
· SVF1 borrowed ¥580,680 million ($4.5 billion) through asset-backed
finance.
· SoftBank Corp. procured ¥183,338 million mainly through the securitizationof installment sales receivables and sale-and-leaseback transactions. The
company also issued commercial paper of ¥157,000 million.
B Proceeds from issuance of There were no proceeds from issuance of corporate bonds.
corporate bonds―
C Proceeds fromprocurement by prepaid
forward contracts using
shares¥1,353,700 million

Wholly owned subsidiaries conducting fund procurement raised $10.49
billion through prepaid forward contracts using Alibaba shares.

38SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2022

Components
Primary details
Repayment of interest-bearing debt (total of D through F below)¥(1,732,623) million
D Repayment of borrowings · SBG repaid short-term borrowings of ¥682,391 million.
*2¥(1,676,420) million· Wholly owned subsidiaries conducting fund procurement repaid a marginloan of ¥154,203 million ($1.2 billion) borrowed through T-Mobile sharesin the previous fiscal year, and borrowings of ¥116,136 million ($0.9
billion) made through asset-backed finance using Arm shares.
· SVF1 and SVF2 repaid ¥355,903 million ($2.76 billion) and ¥23,851
million ($0.18 billion), respectively, in borrowings made through assetbacked finance.
· SoftBank Corp. repaid ¥163,086 million in borrowings made mainly
through the securitization of installment sales receivables and sale-andleaseback transactions and redeemed ¥111,400 million in commercial
paper.
E Redemption of corporate
bonds¥(56,203) million

SBG repurchased foreign currency-denominated straight bonds totaling $0.27
billion (face value) and €0.22 billion (face value).

F Repayment of settlement of There were no repayments of settlement of prepaid forward contracts.
prepaid forward contracts
using shares―
Distribution/repayment from
SVF to third-party investors¥(255,264) million

SVF1 made distributions to third-party investors.

Purchase of treasury stock¥(293,486) million

SBG repurchased 56,297,800 of its own shares for ¥293,484 million in thefirst quarter in accordance with a Board resolution on November 8, 2021 torepurchase up to ¥1 trillion of its own shares.

Cash dividends paid¥(35,288) million

SBG paid dividends.

Cash dividends paid to
non-controlling interests¥(139,309) million

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

Notes:
1. “Proceeds (repayment) in short-term interest-bearing debt, net” present cash flows from financing activities that meet therequirement of “Reporting cash flows on a net basis” under IFRSs.
2. “Proceeds from borrowings” and “repayment of borrowings” include proceeds of ¥403,271 million and outlays of ¥981,369 million
related to borrowings with a contracted term of one year or less.

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

39

SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2022

Notes to “1. Overview of Results of Operations”
1
2
3
4

5
6
7
8
9
10

Includes two investments accounted for as subsidiaries of the Company.
Includes one investment accounted for as a subsidiary of the Company.
Interest expenses of SBG include interest expenses of its wholly owned subsidiaries conducting fund procurement.
The Company applied the equity method to Alibaba’s consolidated financial statements (the Company’s economic interests in
Alibaba as of March 31, 2022: 23.73%) for each reporting period on a three-month time lag because it is impractical to alignreporting periods with Alibaba due to contracts with the company, among factors. Necessary adjustments are made to reflectsignificant transactions and events announced by Alibaba during the period on a three-month time lag.
Includes a SPAC invested in but not sponsored by the Company
Private companies valued at over $1 billion at the time of investment.
After deducting transaction fees, etc.
LatAm Funds investment formerly held in Banco Inter S.A.
Drawn capital of SVF1 excludes the amount repaid to limited partners due to investment plan changes and other reasons after
the capital was drawn.
This analysis is based on the actual shipments of royalty units (chips incorporating Arm technology) by Arm licensees for thethree-month period ended March 31, 2022, as reported by licensees in royalty reports. Arm’s licensees report their actual
shipments of royalty units one quarter in arrears, and therefore, the royalty unit analysis for the fiscal year is based on chips
shipped for the three-month period ended March 31, 2022. In contrast, royalty revenues are accrued in the same quarter thechips are shipped, based on estimates. In the fourth quarter of the previous fiscal year, previously announced royalty unit data
for the nine-month period ended September 30, 2021 has been restated based on information received by Arm from its
licensees.

40

SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2022

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

Definition

SoftBank Group Corp.

SoftBank Group Corp. (stand-alone basis)

The Company

SoftBank Group Corp. and its subsidiaries* Each of the following names or abbreviations indicates the respective company and its subsidiaries, if any.
SB Northstar or the asset management
subsidiary

SB Northstar LP

SVF1

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

SVF2

SoftBank Vision Fund II-2 L.P.

SVF2 LLC

SVF II Investment Holdings LLC

LatAm Funds

SBLA Latin America Fund LLC

SLA LLCSLA Holdco II LLC

SVF

SVF1, SVF2 and LatAm Funds

SBIA

SB Investment Advisers (UK) Limited

SBGA

SB Global Advisers Limited

SBLA

SBLA Advisers Corp.

Arm

Arm Limited

Fortress

Fortress Investment Group LLC

SprintSprint Corporation

Alibaba

Alibaba Group Holding Limited

WeWork

WeWork Inc.

MgmtCoMASA USA LLC

41

SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2022

From the three-month period ended June 30, 2022, the accounts of the condensed interim consolidated financial
statements have been changed as follows:
Condensed Interim Consolidated Statement of Financial Position
Previous
Investments from SVF1 and SVF2 accounted for using
FVTPL
Third-party interests in SVF1 and SVF2

Current
Investments from SVF (FVTPL)
Third-party interests in SVF

Condensed Interim Consolidated Statement of Profit or Loss
Previous

Current

Gain (loss) on investments at SVF1, SVF2, and others

Gain (loss) on investments at SoftBank Vision Funds

Change in third-party interests in SVF1 and SVF2

Change in third-party interests in SVF

Condensed Interim Consolidated Statement of Cash Flows
Previous

Current(Gain) loss on investments at SVF1, SVF2, and others(Gain) loss on investments at SoftBank Vision Funds

Change in third-party interests in SVF1 and SVF2

Change in third-party interests in SVF

Payments for acquisition of investments by SVF1 andSVF2Payments for acquisition of investments by SVF

Proceeds from sales of investments by SVF1 and SVF2

Proceeds from sales of investments by SVF

Contributions into SVF1 from third-party investors

Contributions into SVF from third-party investors

Distribution/repayment from SVF1 to third-party
investors

Distribution/repayment from SVF to third-party
investors

42

SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2022

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

As ofMarch 31, 2022

As ofJune 30, 2022

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

5,169,001
2,361,149
1,050,446
971,125
142,767
334,101
10,028,589

6,070,664
2,349,103
722,335
744,241
142,221369,647
10,398,211

Non-current assets
Property, plant and equipment
Right-of-use assets
Goodwill
Intangible assets
Costs to obtain contracts
Investments accounted for using the equity method
Investments from SVF (FVTPL)
Investment securities
Derivative financial assets
Other financial assets
Deferred tax assets
Other non-current assets
Total non-current assets
Total assets

1,842,749
914,743
4,897,913
2,427,580
330,899
5,234,519
14,909,614
3,085,369
1,333,787
2,230,615
163,255
145,038
37,516,081
47,544,670

1,897,474
927,491
5,241,966
2,467,706
344,558
5,282,289
13,471,055
2,939,798
1,491,976
2,211,645
148,342
153,830
36,578,130
46,976,341

43

SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2022

(Millions of yen)

As ofMarch 31, 2022

As ofJune 30, 2022

Liabilities and equity
Current liabilities
Interest-bearing debt
Lease liabilities
Deposits for banking business
Trade and other payables
Derivative financial liabilities
Other financial liabilities
Income taxes payable
Provisions
Other current liabilities
Total current liabilities

7,328,862
240,241
1,331,385
1,968,864
119,592554,814
183,388
34,056620,260
12,381,462

6,587,844
231,875
1,418,494
1,787,154
69,722399,699
125,433
38,572547,915
11,206,708

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

14,128,570
625,9075,640,498
174,003
129,849
107,9612,436,034
212,624
23,455,446
35,836,908

16,386,221
644,935
5,368,114
452,808
158,235
99,9882,246,312
238,422
25,595,035
36,801,743

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

238,772
2,634,574
496,876
4,515,704(406,410)
2,496,158
9,975,674

238,7722,644,872
496,876
1,318,266(698,662)
4,562,289
8,562,413

Non-controlling interests
Total equity
Total liabilities and equity

1,732,088
11,707,762
47,544,670

1,612,185
10,174,598
46,976,341

44

SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2022

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

Three-month period ended
June 30, 2022

Net sales
Cost of sales
Gross profit
Gain on investments
Gain on investments at Investment Business of
Holding Companies
Gain (loss) on investments at SoftBank Vision Funds
Gain (loss) on other investments
Total gain on investments

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

1,572,030(688,239)
883,791

741,527

111,223507,303
14,2381,263,068(2,919,130)(26,533)(2,834,440)

Selling, general and administrative expenses
Finance cost
Foreign exchange loss
Income (loss) on equity method investments
Derivative loss (excluding gain (loss) on
investments)
Change in third-party interests in SVF
Other gain
Income before income tax
Income taxes
Net income(593,430)(82,799)(14,874)
50,380(626,513)(114,139)(819,969)(158,370)(111,536)(259,250)(134,551)
104,249
1,292,478(359,989)
932,489

631,367
5,068(3,292,455)
196,134(3,096,321)

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

761,509170,980
932,489(3,162,700)
66,379(3,096,321)

Earnings per share
Basic earnings per share (Yen)
Diluted earnings per share (Yen)

437.45394.73(1,949.55)(1,950.29)

45

SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2022

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

Three-month period ended
June 30, 2022

932,489(3,096,321)

12,272

9,493

12,272

9,493

337
3,198

(504)
(34,049)

46,847

2,092,984

1,257(14,754)

51,6392,043,677

63,911
996,400

2,053,170(1,043,151)

823,095
173,305
996,400(1,094,795)
51,644(1,043,151)

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

46SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2022

(3) Condensed Interim Consolidated Statement of Changes in Equity
For the three-month period ended June 30, 2021
(Millions of yen)

Equity attributable to owners of the parent

Commonstock

Capitalsurplus

Other equity
instruments

Retainedearnings

Treasurystock

Accumulated
othercomprehensive
income238,7722,618,504

496,876

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

338,329

10,212,826

Comprehensive income
Net income
Other comprehensive income

-

-

-

761,509--761,509

-

-

-

-

-

61,85361,853

Total comprehensive income

-

-

-

761,509-61,853

823,362---(38,247)--(38,247)

-

-

-

(117)

-

117

-

-

-

-

(1,148)(253,841)-(254,989)-(9,788)-(2,475,817)-

2,475,817--(9,788)-(7,681)

-

-

-

-

(7,681)

-

(2)

-

-

-

-

(2)

-

64
-

-

-

-

-

64
-

-

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

2,221,976

117(310,643)

238,772

2,601,097

496,876

7,056,602(68,101)

400,299

10,725,545

As of April 1, 2021

Subtotal

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

47

SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2022

(Millions of yen)

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

Total

Noncontrollinginterests

Total equity

As of April 1, 2021

267

10,213,093

1,742,500

11,955,593

Comprehensive income
Net income
Other comprehensive income-

761,509170,980

932,489(267)

61,586

2,325

63,911

Total comprehensive income(267)

823,095

173,305

996,400-(38,247)(138,949)(177,196)

-

-

-

-

-

(254,989)-(254,989)

-

-

-

-

-

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

-

(2)

-

(2)

-

64
-

16,678(1,038)16,742(1,038)-(310,643)(150,243)(460,886)-

10,725,545

1,765,562

12,491,107

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

48

SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2022

For the three-month period ended June 30, 2022
(Millions of yen)

Equity attributable to owners of the parent

As of April 1, 2022

Commonstock

Capitalsurplus

Other equity
instruments

Retainedearnings

Treasurystock

Accumulated
othercomprehensive
income2,496,158

9,975,674

Total

238,772

2,634,574

496,876

4,515,704(406,410)

Comprehensive income
Net income
Other comprehensive income

-

-

-

(3,162,700)--(3,162,700)

-

-

-

-

-

2,067,905

2,067,905

Total comprehensive income

-

-

-

(3,162,700)-

2,067,905(1,094,795)

-

-

-

(36,229)--(36,229)

-

-

-

1,774

-

(1,774)

-

-

-

-

(283)

(292,252)-(292,535)

-

776

-

-

-

-

776

-

9,457

-

-

-

-

9,457

-

31

-

-

-

-

31

-

34
-

-

-

-

-

34
-

-

10,298-(34,738)(292,252)(1,774)(318,466)

238,7722,644,872

496,876

1,318,266(698,662)

4,562,289

8,562,413

Transactions with owners andother transactions
Cash dividends
Transfer of accumulated othercomprehensive income toretained earnings
Purchase and disposal of treasury
stock
Changes from loss of control
Changes in interests in subsidiaries
Changes in associates’ interests intheir subsidiaries
Changes in interests in associates’
capital surplus
Share-based payment transactions
Other
Total transactions with owners
and other transactions
As of June 30, 2022

49

SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2022

(Millions of yen)

As of April 1, 2022

Noncontrollinginterests

Total equity

1,732,088

11,707,762

66,379(3,096,321)

Comprehensive income
Net income
Other comprehensive income(14,735)

2,053,170

Total comprehensive income

51,644(1,043,151)(141,959)(178,188)---(292,535)

Transactions with owners andother transactions
Cash dividends
Transfer of accumulated othercomprehensive income toretained earnings
Purchase and disposal of treasury
stock
Changes from loss of control
Changes in interests in subsidiaries
Changes in associates’ interests intheir subsidiaries
Changes in interests in associates’
capital surplus
Share-based payment transactions
Other
Total transactions with owners
and other transactions
As of June 30, 2022

992

992

8,378

9,154

-

9,457

-

31

6,542

6,576

(45,500)(45,500)(171,547)(490,013)

1,612,185

10,174,598

50

SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2022

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

Cash flows from operating activities
Net income
Depreciation and amortization
Gain on investments at Investment Business of Holding
Companies(Gain) loss on investments at SoftBank Vision Funds
Finance cost
Foreign exchange loss
(Income) loss on equity method investments
Derivative loss (excluding (gain) loss on investments)
Change in third-party interests in SVF(Gain) loss on other investments and other gain
Income taxes
Decrease in investments from asset management
subsidiaries
Increase/decrease in derivative financial assets andderivative financial liabilities in asset management
subsidiaries
Decrease in restricted cash in asset management
subsidiaries
Decrease in securities pledged as collateral in asset
management subsidiaries
Decrease in borrowed securities in asset management
subsidiaries(Increase) decrease in trade and other receivables
Decrease in inventories
Decrease in trade and other payables
Other
SubtotalInterest and dividends received
Interest paid
Income taxes paid
Income taxes refunded
Net cash provided by operating activities

51

Three-month period
ended June 30, 2021

Three-month period
ended June 30, 2022

932,489
212,914(3,096,321)
220,852(520,921)(157,196)(507,303)
82,79914,874(50,380)
111,536
134,551(118,487)
359,989

2,919,130
114,139
819,969
158,370259,250(631,367)
21,465(196,134)

48,582

66,612(66,147)

49,19639,509134,637

734,283

2,032(8,657)(131,796)(15,285)
7,661(181,714)
16,4731,226,766
7,690(75,673)(651,515)
170
507,438

8,610
3,321
(167,749)
16,010413,030
19,304(93,582)(201,600)
3,653
140,805

SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2022

(Millions of yen)

Cash flows from investing activities
Payments for acquisition of investments
Proceeds from sales/redemption of investments
Payments for acquisition of investments by SVF
Proceeds from sales of investments by SVF
Payments for acquisition of investments by asset
management subsidiaries
Proceeds from loss of control over subsidiaries
Payments for acquisition of marketable securities for
short-term trading
Proceeds from sales/redemption of marketable securities
for short-term trading
Purchase of property, plant and equipment, andintangible assets
Payments for loan receivables
Collection of loan receivables
Proceeds from withdrawal of restricted cash
Other
Net cash (used in) provided by investing activities
Cash flows from financing activities(Repayment) proceeds in short-term interest-bearing
debt, net
Proceeds from interest-bearing debt
Repayment of interest-bearing debt
Repayment of lease liabilities
Contributions into SVF from third-party investors
Distribution/repayment from SVF to third-party investors
Purchase of treasury stock
Cash dividends paid
Cash dividends paid to non-controlling interests
Other
Net cash provided by financing activities
Effect of exchange rate changes on cash and cash
equivalents
Increase in cash and cash equivalents
Cash and cash equivalents at the beginning of the period
Cash and cash equivalents at the end of the period

52

Three-month period
ended June 30, 2021

Three-month period
ended June 30, 2022

(311,912)
80,558(1,492,450)
646,663(64,795)
364,526(306,365)
344,210(81,675)-

62,700-(30,361)(20,701)

29,602

26,500(176,615)(170,156)(72,196)
5,665
359,0995,103(975,819)(9,637)65,28621
57,209286,098(112,596)

15,6302,412,744(691,384)(94,054)
70,204(346,746)(257,780)(37,416)(135,820)(21,061)
786,091

2,728,946(1,732,623)(74,029)
7,712(255,264)(293,486)(35,288)(139,309)(46,363)
175,926(373)

298,834

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

901,663
5,169,001
6,070,664

SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2022

(5) Significant Doubt about Going Concern Assumption
There are no applicable items.

(6) Notes to Condensed Interim Consolidated Financial Statements
1. Changes in presentation(Condensed interim consolidated statement of financial position)
In connection with the integration of the Latin America Funds segment into the SoftBank Vision Funds segment,
the investments from LatAm Funds, which were included in “Investment securities” and “Other financial assets(non-current)” in the past fiscal year, are included in “Investments from SVF (FVTPL)” from the three-month
period ended June 30, 2022. In addition, the third-party interests in LatAm Funds, which were included in “Other
financial liabilities (non-current)” in the past fiscal year, are included in “Third-party interests in SVF” from thethree-month period ended June 30, 2022. In order to reflect the changes in presentation, ¥1,123,198 million,
which was included in “Investment securities,” and ¥20,025 million, which was included in “Other financial
assets (non-current)” as of March 31, 2022, are reclassified as “Investments from SVF (FVTPL).” Furthermore,¥80,663 million, which was included in “Other financial liabilities (non-current)” as of March 31, 2022, isreclassified as “Third-party interests in SVF.”“Investments from asset management subsidiaries,” “Securities pledged as collateral in asset management
subsidiaries,” and “Derivative financial assets in asset management subsidiaries,” which were separately
presented in the past fiscal year, are included in “Other financial assets (current)” as of June 30, 2022 since theamounts decreased and became insignificant. In order to reflect the changes in presentation, ¥158,094 million,¥1,927 million, and ¥48,466 million, which were separately presented as “Investments from asset management
subsidiaries,” “Securities pledged as collateral in asset management subsidiaries,” and “Derivative financial assets
in asset management subsidiaries” as of March 31, 2022, respectively, are included in “Other financial assets(current).”(Condensed interim consolidated statement of profit or loss and condensed interim consolidated statement ofcomprehensive income)In connection with the integration of the Latin America Funds segment into the SoftBank Vision Funds segment,
gain and loss on investments at LatAm Funds, which were presented as “Gain (loss) on investments at Latin
America Funds” in the past fiscal year, are included in “Gain (loss) on investments at SoftBank Vision Funds”
from the three-month period ended June 30, 2022. In addition, the change in third-party interests in LatAm
Funds, which was included in “Other gain (loss)” in the past fiscal year, is included in “Change in third-party
interests in SVF” from the three-month period ended June 30, 2022. In order to reflect the changes inpresentation, ¥219,368 million, which was presented as “Gain on investments at Latin America Funds,” and¥(458) million, which was included in “Other gain” for the three-month period ended June 30, 2021, arereclassified as “Gain (loss) on investments at SoftBank Vision Funds” and “Change in third-party interests in
SVF,” respectively.
“Foreign exchange gain (loss),” which was included in “Other gain (loss)” in the past fiscal year, is separately

53

SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2022

presented from the three-month period ended June 30, 2022 since the amount increased and became significant. In
order to reflect the change in presentation, ¥(14,874) million, which was included in “Other gain” for the threemonth period ended June 30, 2021, is reclassified as “Foreign exchange loss.”(Condensed interim consolidated statement of cash flows)a. Cash flows from operating activities
In connection with the integration of the Latin America Funds segment into the SoftBank Vision Funds
segment, gain and loss on investments at LatAm Funds, which were presented as “(Gain) loss on investments
at Latin America Funds” in the past fiscal year, are included in “(Gain) loss on investments at SoftBank Vision
Funds” from the three-month period ended June 30, 2022. In addition, the change in third-party interests in
LatAm Funds, which was included in “(Gain) loss on other investments and other (gain) loss” in the past fiscal
year, is included in “Change in third-party interests in SVF” from the three-month period ended June 30, 2022.
In order to reflect the changes in presentation, ¥(219,368) million, which was presented as “Gain on
investments at Latin America Funds,” and ¥458 million, which were included in “(Gain) loss on otherinvestments and other gain” for the three-month period ended June 30, 2021, are reclassified as “(Gain) loss on
investments at SoftBank Vision Funds” and “Change in third-party interests in SVF,” respectively.
“Foreign exchange (gain) loss,” which was included in “(Gain) loss on other investments and other (gain) loss”
in the past fiscal year, is separately presented from the three-month period ended June 30, 2022 since theamounts increased and became significant. In order to reflect the change in presentation, ¥14,874 million,
which was included in “(Gain) loss on other investments and other gain” for the three-month period ended
June 30, 2021, is reclassified as “Foreign exchange loss.” In addition, “(Increase) decrease in restricted cash inasset management subsidiaries” and “Increase (decrease) in borrowed securities in asset management
subsidiaries,” which were included in “Other” in the past fiscal year, are separately presented from the threemonth period ended June 30, 2022 since the amounts increased and became significant. In order to reflect thechanges in presentation, ¥39,509 million and ¥(8,657) million, which were included in “Other” for the threemonth period ended June 30, 2021, are reclassified as “Decrease in restricted cash in asset management
subsidiaries” and “Decrease in borrowed securities in asset management subsidiaries,” respectively.
b. Cash flows from investing activities
In connection with the integration of the Latin America Funds segment into the SoftBank Vision Funds
segment, the payments for the investing activities by LatAm Funds, which were included in “Payments foracquisition of investments” and “Payments for loan receivables” in the past fiscal year, are included in“Payments for acquisition of investments by SVF” from the three-month period ended June 30, 2022. In orderto reflect the changes in presentation, ¥(90,032) million, which was included in “Payments for acquisition of
investments,” and ¥(550) million, which was included in “Payments for loan receivables” for the three-month
period ended June 30, 2021, are reclassified as “Payments for acquisition of investments by SVF.”“Collection of loan receivables,” which was included in “Other” in the past fiscal year, is separately presented
from the three-month period ended June 30, 2022 since the amount increased and became significant. In orderto reflect the change in presentation, ¥5,665 million, which was included in “Other” for the three-month period
ended June 30, 2021, is reclassified as “Collection of loan receivables.”54SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2022

c. Cash flows from financing activities
In connection with the integration of the Latin America Funds segment into the SoftBank Vision Funds
segment, the contributions into LatAm Funds, which were included in “Other” in the past fiscal year, areincluded in “Contributions into SVF from third-party investors” from the three-month period ended June 30,
2022. In order to reflect the change in presentation, ¥517 million, which was included in “Other” for the threemonth period ended June 30, 2021, is reclassified as “Contributions into SVF from third-party investors.”

55

SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2022

2. Significant accounting policies
Significant accounting policies applied to the condensed interim consolidated financial statements are consistent
with the accounting policies applied to the consolidated financial statements for the fiscal year ended March 31,
2022. In addition, income taxes for the three-month period ended June 30, 2022 are calculated based on theestimated effective tax rate for the fiscal year.
Significant accounting policies for the SoftBank Vision Funds segment are consistent with the accounting
policies applied to the consolidated financial statements for the fiscal year ended March 31, 2022. The details aredescribed as follows.
(Significant accounting policies for the SoftBank Vision Funds segment)
For SVF1, SVF2 and LatAm Funds, the Company applies the following accounting policies.
a. Consolidation of SVF1, SVF2 and LatAm Funds by the Company
SVF1 and SVF2 are limited partnerships established by their respective general partners which are whollyowned subsidiaries of the Company (SVF2 owns limited liability companies including SVF2 LLC) as its
subsidiaries and by their forms of organization, qualify as structured entities. SVF1 and SVF2 areconsolidated by the Company for the following reasons.
As of June 30, 2022, SVF1 and SVF2 are managed by SBIA and SBGA, respectively, which are whollyowned subsidiaries of the Company in the UK. SVF1 and SVF2 make investment decisions through each
investment committee, which was established in SBIA and SBGA, respectively. As such, the Company has
power as defined under IFRS 10 “Consolidated Financial Statements” over SVF1 and SVF2. Furthermore,
SBIA receives performance fees and SBGA receives performance-linked management fees. The Company
receives distributions attributable to limited partners based on the investment performance as returns from
SVF1 and SVF2. The Company has the ability to affect those returns through its power over SVF1 andSVF2, and therefore, the Company is deemed to have control as stipulated in IFRS 10 “Consolidated
Financial Statements” over SVF1 and SVF2.
LatAm Funds is a limited liability company in which a wholly-owned subsidiary of the Company invests(LatAm Funds owns limited partnerships and the other forms of entities). LatAm Funds is consolidated by theCompany as it holds more than one-half of the voting rights of LatAm Funds.
Inter-company transactions such as management fees and performance fees to SBIA paid or to be paid, asapplicable, from SVF1, and management fees performance-linked management fees and performance fees to
SBGA paid or to be paid, as applicable, from SVF2 or LatAm Funds are eliminated in consolidation.
b. Portfolio company investments made by SVF1, SVF2 and LatAm Funds(a) Investments in subsidiaries
Of the portfolio company investments made by SVF1, SVF2 and LatAm Funds, the portfolio companies
that the Company is deemed to control under IFRS 10 “Consolidated Financial Statements” are56SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2022

subsidiaries of the Company. Accordingly, their results of operations, assets and liabilities are included in
the Company’s condensed interim consolidated financial statements.
Gain and loss on investments in the subsidiaries of the Company which are recognized in SVF1, SVF2 andLatAm Funds are eliminated in consolidation.
(b) Investments in associates and joint ventures
Of the portfolio company investments made by SVF1, SVF2 and LatAm Funds, the portfolio companies
over which the Company has significant influence under IAS 28 “Investments in Associates and Joint
Ventures” are associates of the Company, and the portfolio companies that are joint ventures of theCompany when, as defined under IFRS 11 “Joint Arrangements,” SVF1, SVF2 and LatAm Funds havejoint control with other investors under contractual arrangements and the investors have rights to the net
assets of the arrangement.
The investments in associates and joint ventures of the Company made by SVF1, SVF2 and LatAm Funds
are accounted for as financial assets at FVTPL in accordance with paragraph 18 of IAS 28 “Investments in
Associates and Joint Ventures” and presented as “Investments from SVF (FVTPL)” in the condensed
interim consolidated statement of financial position. The payments for these investments are presented as“Payments for acquisition of investments by SVF” and the proceeds from sales of these investments arepresented as “Proceeds from sales of investments by SVF” under cash flows from investing activities in
the condensed interim consolidated statement of cash flows.
If the investments in associates and joint ventures that were transferred from SoftBank Group Corp. and its
subsidiaries to SVF1, SVF2 or LatAm Funds were accounted for using the equity method prior to thetransfer, these investments continue to be accounted for using the equity method after the transfer to
SVF1, SVF2 or LatAm Funds and presented as “Investments accounted for using the equity method” inthe condensed interim consolidated statement of financial position. Gain and loss on the investments
which were recognized in SVF1, SVF2 or LatAm Funds are eliminated in consolidation and gain and loss
on the investments accounted for using the equity method are presented as “Income (loss) on equity
method investments” in the condensed interim consolidated statement of profit or loss.
(c) Other investments
Investments other than those in associates or joint ventures of the Company made by SVF1, SVF2 andLatAm Funds are accounted for as financial assets at FVTPL. The presentation of these investments in thecondensed interim consolidated statement of financial position and the condensed interim consolidated
statement of cash flows are the same as the above “(b) Investments in associates and joint ventures.”c. Contribution from limited partners in SVF1 and SVF2, and investors in LatAm Funds, SVF2 LLC and SLA
LLC (collectively “SVF Investors”)(a) Contribution from SVF Investors other than the Company (“Third-Party Investors,” and each a “ThirdParty Investor”)
The interests attributable to Third-Party Investors in SVF1, SVF2 and LatAm Funds are classified as
financial liabilities, “Third-party interests in SVF” in the condensed interim consolidated statement of
57

SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2022

financial position, due to the predetermined finite life and contractual payment provision to each of ThirdParty Investors at the end of the finite life within the constitutional agreements relating to SVF1, SVF2
and LatAm Funds. The liabilities are classified as “financial liabilities measured at amortized cost” upon
initial recognition. The carrying amounts attributable to Third-Party Investors represent the amounts thatwould be distributed in accordance with the constitutional agreements in a theoretical liquidation scenario
at the end of each quarter.
Third-Party Investor in SVF2 and LatAm Funds is entitled to make full or partial payments of its
investments and related adjustments at any point in time, at its discretion, from the date it became aninvestor in SVF2 LLC or SLA LLC to the end of company life of SVF2 LLC or SLA LLC, and as of June30, 2022, the Company has recognized receivables from Third-Party Investor. The receivables areincluded in “Other financial assets (non-current)” in the condensed interim consolidated statement offinancial position.
“Third-party interests in SVF” fluctuates due to the results of SVF1, SVF2 and LatAm Funds in addition
to contributions from Third-Party Investors, and distributions and repayments of investments to ThirdParty Investors, respectively. The fluctuations due to the results of SVF1, SVF2 and LatAm Funds arepresented as “Change in third-party interests in SVF” in the condensed interim consolidated statement of
profit or loss.
Contributions from Third-Party Investors are included in “Contributions into SVF from third-party
investors” under cash flows from financing activities in the condensed interim consolidated statement ofcash flows. The distributions and repayments of investments to Third-Party Investors are included in“Distribution/repayment from SVF to third-party investors” under cash flows from financing activities in
the condensed interim consolidated statement of cash flows. No cash contributions into SVF2 and LatAm
Funds from Third-Party Investors and no cash distributions/repayments from SVF2 and LatAm Funds toThird-Party Investors were made as of June 30, 2022.
Uncalled committed capital from Third-Party Investors is not subject to IFRS 9 “Financial Instruments,”
and, therefore, such amount is not recorded in the condensed interim consolidated statement of financial
position.
(b) Contribution from the Company
Contributions to SVF1, SVF2 and LatAm Funds from the Company are eliminated in consolidation.

58

SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2022

3. Segment information(1) Description of reportable segments
The Company’s reportable segments are components of business activities for which discrete financial
information is available, and such information is regularly reviewed by the Company’s Board of Directors inorder to make decisions about the allocation of resources and assess its performance.
For the fiscal year ended March 31, 2022, the Company had five reportable segments, the Investment Businessof Holding Companies segment, the SoftBank Vision Funds segment, the SoftBank segment, the Armsegment, and the Latin America Funds segment. As a result of the revision for its segment classifications, theLatin America Funds segment has been integrated into the SoftBank Vision Funds Segment from the threemonth period ended June 30, 2022 since LatAm Funds has been managed by SBGA, which manages SVF2.
The Investment Business of Holding Companies segment conducts, mainly through SoftBank Group Corp. as a
strategic investment holding company, investment activities in a wide range of sectors in Japan and overseas
directly or through subsidiaries of the Company. The Investment Business of Holding Companies segment
consists of SoftBank Group Corp., SoftBank Group Capital Limited, SoftBank Group Japan Corporation, SB
Northstar that is an asset management subsidiary, and certain subsidiaries of the Company that conduct
investment or funding. Gain and loss on investments at Investment Business of Holding Companies consist ofgain and loss arising from investments held directly by SoftBank Group Corp. or through subsidiaries of theCompany. However, gain and loss on investments relating to investments in subsidiaries including dividend
income from subsidiaries and impairment loss on investments in subsidiaries are excluded.
The SoftBank Vision Funds segment conducts, mainly through SVF1, SVF2, and LatAm Funds, investment
activities in a wide range of technology sectors. Primarily, gain and loss on investments at SVF1, SVF2, LatAm
Funds, and others consist of gain and loss arising from investments held by SVF1, SVF2, and LatAm Funds
including the investment in the Company’s subsidiary.
The SoftBank segment provides, mainly through SoftBank Corp., mobile services, sale of mobile devices,
broadband services, and solution services in Japan, and through Yahoo Japan Corporation and LINE
Corporation, internet advertising and e-commerce services.
The Arm segment provides, through Arm, designs of microprocessor intellectual property and related
technology, the sale of software tools, and related services.

59

SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2022

Information on business segments which are not included in the reportable segments is classified in “Other.”“Other” includes mainly PayPay Corporation, Fortress, and the Fukuoka SoftBank HAWKS-related operations.
“Reconciliations” includes an elimination of intersegment transactions, as well as an elimination of gain andloss on the investment in shares in Arm and PayPay Corporation, subsidiaries of the Company, and WeWork,an equity method associate, and others, which are included in segment income of the SoftBank Vision Funds
segment, and an elimination of income and loss on equity method investments recognized relating to PayPay
Corporation, which is included in segment income of the SoftBank segment.
Segment information for the three-month period ended June 30, 2021 is presented based on the reportablesegments after the aforementioned change.
(2) Net sales and income of reportable segments
Income of reportable segments is defined as “Income before income tax.” As in the condensed interim
consolidated statement of profit or loss, “Gain (loss) on investments” included in segment income includes
realized gain and loss from investments in financial assets at FVTPL for which investment performance ismeasured at fair value, unrealized gain and loss on valuation of investments, dividend income frominvestments, derivative gain and loss relating to investments in financial assets at FVTPL, and realized gain
and loss from investments accounted for using the equity method. The Investment Business of Holding
Companies segment calculates its segment income by eliminating gain and loss on investments relating toinvestments in subsidiaries, including dividend income from subsidiaries and impairment loss on investments
in subsidiaries.
Intersegment transaction prices are determined under the same general business conditions as applied forexternal customers.

60

SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2022

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

Reportable segments
Investment Businessof Holding Companies

SoftBank Vision
Funds

SoftBank

Arm

Net sales
Customers
Intersegment--

1,354,008
2,562

74,017
261

Total

-

-

1,356,570

74,278Segment income
Depreciation andamortization

625,327451,930

270,954

8,781

(995)

(176)

(184,340)(18,473)

Gain (loss) on investments

741,381

610,938

15,262

6

Finance cost

(59,594)(4,304)(15,553)(258)(12,661)

5

(244)

-

54,670-(12,339)

209(108,211)

704

(99)

(451)

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

Total

Other

Reconciliations

Consolidated

Net sales
Customers
Intersegment

1,428,025
2,823

51,1093,108(5,931)

1,479,134-

Total

1,430,848

54,217(5,931)

1,479,134

Segment income
Depreciation andamortization

1,356,992

33,158(97,672)

1,292,478(203,984)(8,930)-(212,914)

Gain (loss) on investments

1,367,587(1,030)(103,489)

1,263,068(79,709)(4,105)

1,015(82,799)(12,900)(1,974)-(14,874)

42,540

2,040

5,800

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

Finance cost
Foreign exchange gain
(loss)
Income (loss) on equity
method investments
Derivative gain (loss)(excluding gain (loss) on
investments)

61

SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2022

For the three-month period ended June 30, 2022
(Millions of yen)

Reportable segments
Investment Businessof Holding Companies

SoftBank Vision*
Funds

SoftBank

Arm

Net sales
Customers
Intersegment--

1,356,994
5,127

92,751
-

Total

-

-

1,362,121

92,751(1,198,053)(2,330,750)

225,389

29,846(1,075)(168)(183,311)(21,341)

Gain (loss) on investments

111,233(2,933,845)

1,133

39

Finance cost

(80,029)(15,401)(15,341)(272)(822,035)

76

263

1,658

(139,782)-(13,536)(85)(244,986)

499

901

(1,302)

Segment income
Depreciation andamortization

Foreign exchange gain
(loss)
Loss on equity method
investments
Derivative gain (loss)(excluding gain (loss) on
investments)

Total

Other

Reconciliations

Consolidated

Net sales
Customers
Intersegment

1,449,745
5,127

122,285
3,134(8,261)

1,572,030-

Total

1,454,872

125,419(8,261)

1,572,030

Segment income
Depreciation andamortization(3,273,568)(25,635)

6,748(3,292,455)(205,895)(14,957)-(220,852)

Gain (loss) on investments(2,821,440)(27,705)

14,705(2,834,440)(111,043)(4,166)

1,070(114,139)(820,038)

69-(819,969)(153,403)(3,707)(1,260)(158,370)(244,888)(14,362)-(259,250)

Finance cost
Foreign exchange gain
(loss)
Loss on equity method
investments
Derivative gain (loss)(excluding gain (loss) on
investments)

Note:* The details of the difference between “Gain (loss) on investments” in the SoftBank Vision Funds segment and “Gain (loss) on
investments at SoftBank Vision Funds” in the condensed interim consolidated statement of profit or loss are described in “Note 4.
SoftBank Vision Funds business.”

62SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2022

4. SoftBank Vision Funds business(1) Income and loss arising from the SoftBank Vision Funds businessa. Overview
Segment income arising from the SoftBank Vision Funds business (income before income tax) represents thenet profits of the SoftBank Vision Funds business, after deducting the net profits attributable to Third-Party
Investors. The net profits attributable to Third-Party Investors are the amount after deducting management
fees, performance-linked management fees, and performance fees, as applicable, that SBIA receives from
SVF1, and that SBGA receives from SVF2 and LatAm Funds.
The amount of the net profits attributable to Third-Party Investors that is deducted from the segment income ispresented as “Change in third-party interests in SVF1 and SVF2.”
b. Segment income arising from the SoftBank Vision Funds business
The components of segment income arising from the SoftBank Vision Funds business are as follows:(Millions of yen)Three-month period
ended June 30, 2021

Three-month period
ended June 30, 2022

406,642(26,722)649,071(2,881,472)(453,153)(34,423)

20,985(3,370)415
37,650(9,294)(30,478)

610,88157(2,935,030)
1,185

610,938(2,933,845)(18,786)(4,304)704(134,551)(2,071)(18,904)(15,401)
499
631,3675,534

451,930(2,330,750)

Gain (loss) on investments at SoftBank Vision Funds
Gain (loss) on investments at SVF1, SVF2, and
LatAm Funds
2
Realized gain (loss) on investments
Unrealized gain (loss) on valuation of investments
3
Change in valuation for the fiscal year
Reclassified to realized gain recorded in the4past fiscal years
Interest and dividend income from investments
Derivative gain (loss) on investments
5
Effect of foreign exchange translation
Subtotal
Gain on other investments
Total gain (loss) on investments at SoftBank
Vision Funds
Selling, general and administrative expenses
Finance cost (interest expenses)
Derivative gain (excluding gain (loss) on investments)
Change in third-party interests in SVF
Other gain (loss)
Segment income arising from the SoftBank Vision
Funds business (income before income tax)

63

SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2022

Notes:
1. The Latin America Funds segment has been integrated into the SoftBank Vision Funds Segment from the three-month period
ended June 30, 2022 since LatAm Funds has been managed by SBGA, which manages SVF2. Segment income arising fromthe SoftBank Vision Funds business for the three-month period ended June 30, 2021 is presented based on the reportablesegments after the aforementioned change.
2. In addition to the realized gain and loss on sales by cash consideration, the realized gain and loss by share exchange areincluded.
3. The unrealized gain on valuation arising from Arm shares held by SVF1 is included in “Gain (loss) on investments at
SoftBank Vision Funds” (in Change in valuation for the fiscal year under Unrealized gain (loss) on valuation of investments)
in the above-mentioned segment income. However, the unrealized gain on valuation is eliminated in consolidation as Arm is
a subsidiary of the Company. SVF1 does not record unrealized gain (loss) on investments for the three-month period ended
June 30, 2022.
For the three-month period ended September 30, 2021, a wholly-owned subsidiary of the Company other than SVF1 wastransferred through sales from the Company to SVF2. As a result of the transaction, WeWork shares held by SVF2 include
common shares and the common shares are continuously accounted for using the equity method on a consolidation basis after
the transfer. For the three-month period ended June 30, 2022, ¥10,795 million of the unrealized loss on valuation arising from
WeWork common shares held by SVF2 is included in “Gain (loss) on investments at SoftBank Vision Funds” (in Change invaluation for the fiscal year under Unrealized gain (loss) on valuation of investments) in the above-mentioned segment
income. However, the unrealized loss on valuation is eliminated in consolidation as WeWork is an equity method associate of
the Company.
The unrealized gain and loss on valuation, that are eliminated in consolidation, are not included in “Gain (loss) on
investments at SoftBank Vision Funds” in the condensed interim consolidated statement of profit or loss.
4. It represents the unrealized gain and loss on valuation of investments recorded as “Gain (loss) on investments at SVF1, SVF2,
and others” in the past fiscal years, which are reclassified to “Realized gain (loss) on investments” due to the realization for
the three-month period ended June 30, 2022.
5. Unrealized gain and loss on valuation of investments are translated using the average exchange rate for the quarter in which
the gain and loss were recognized, while realized gain and loss on investments are translated using the average exchange rate
for the quarter in which the shares were disposed. “Effect of foreign exchange translation” is arising from the different
foreign currency exchange rates used for unrealized gain and loss on valuation and realized gain and loss.

64

SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2022

(2) Third-party interests in SVF
a. Terms and conditions of contribution from/ distribution to SVF Investors
Contributions by SVF Investors are classified as “Equity” and “Preferred Equity” depending on the terms andconditions of distribution. Preferred Equity is prioritized over Equity with regard to distribution and return ofcontribution.
Performance-based distributions attributed to SVF Investors, consisting of the Company and Third-Party
Investors, are calculated using the net proceeds from the investment performance, as applicable, of SVF1,
SVF2 and LatAm Funds. The net proceeds from SVF1 and LatAm Funds are also allocated to theperformance fees attributed to SBIA and SBGA, respectively, using the method specified in the limited
partnership agreement. The amount of performance-based distribution attributed to SVF Investors is allocatedto each of the SVF Investors based on the proportion of their respective Equity contribution. The amount of
performance-based distributions is paid to each of the SVF Investors after each of SVF1, SVF2 and LatAm
Funds, as applicable, receive cash through dividend, or disposition or monetization of investments.
In SVF1, fixed distributions are defined as distributions of Preferred Equity holders which are calculated
equal to a 7% rate per annum based on their contributions. The fixed distributions are made every lastbusiness day of the months of June and December. The details of the terms and conditions of the Equity
contributed by Third-Party Investor in SVF2 and LatAm Funds are described in “Note 14. Related party
transactions regarding a co-investment program with restricted rights to receive distributions.” There are no
Third-Party Investors who contributed to Preferred Equity in SVF2 and LatAm Funds.
In the following table, Third-Party Investors contributing Equity are defined as “Investors entitled toperformance-based distribution” and Third-Party Investors contributing Preferred Equity are defined as“Investors entitled to fixed distribution.”

65

SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2022

b. Changes in interests attributable to Third-Party Investors(a) Third-party interests in SVF1
Changes in interests attributable to Third-Party Investors in SVF1 (included in “Third-party interests in SVF”
in the condensed interim consolidated statement of financial position) are as follows:(Millions of yen)(For reference purposes only)
Links with the condensed interim
consolidated financial statements
Consolidated
Consolidated
Third-party interests instatement of cash
statement
SVF1
flows
of profit or loss
(Total of current liabilities(Negative figures(Negative figures
represent
and non-current liabilities)
represent expenses)
payments)(Breakdown)
5,289,754

As of April 1, 2022
Contributions from third-party investors

7,712

-

7,712

Changes in third-party interests
Attributable to investors entitled to
fixed distribution
Attributable to investors entitled toperformance-based distribution
Distribution/repayment to third-party
investors
Exchange differences on translating(408,818)

408,818-(255,264)-(255,264)

578,759--*

third-party interests
As of June 30, 2022

40,697(449,515)

5,212,143

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

66SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2022(b) Third-party interests in SVF2 and receivables
Changes in interests attributable to Third-Party Investor in SVF2 (included in “Third-party interests in SVF”
in the condensed interim consolidated statement of financial position) are as follows: Third-party Investor in
SVF2 is the investor entitled to performance-based distribution.
(Millions of yen)(For reference purposes only)
Links with the condensed interim
consolidated financial statements
Consolidated
Consolidated
Third-party interests instatement of cash
statement
SVF2
flows
of profit or loss
(Total of current liabilities(Negative figures(Negative figuresand non-current liabilities)
represent
represent expenses)
payments)
As of April 1, 2022
Changes in third-party interests
Exchange differences on translating
third-party interests
As of June 30, 2022*

270,081(196,724)

196,724-

19,887--

93,244Note:* Exchange differences were included in “Exchange differences on translating foreign operations” in the condensed interim
consolidated statement of comprehensive income.

The Company has receivables from Third-party Investor in SVF2. The changes in the receivables from ThirdParty Investor in SVF2 (included in “Other financial assets (non-current)” in the condensed interim
consolidated statement of financial position) are as follows: The details of the receivables from Third-Party
Investor in SVF2 are described in “Note 14. Related party transactions regarding a co-investment programwith restricted rights to receive distributions.”(Millions of yen)

As of April 1, 2022
Increase in receivables from Equity Acquisition Amount and accrued
premiums charged to third-party investor
Exchange differences on receivables
As of June 30, 2022

67

Receivables from third-party
investor in SVF2
342,6632,654
40,166385,483SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2022(c) Third-party interests in LatAm Funds and receivables
Changes in interests attributable to Third-Party Investor in LatAm Funds (included in “Third-party interests in
SVF” in the condensed interim consolidated statement of financial position) are as follows: Third-party
Investor in LatAm Funds is the investor entitled to performance-based distribution.
(Millions of yen)(For reference purposes only)
Links with the condensed interim
consolidated financial statements
Consolidated
Consolidated
Third-party interests instatement of cash
statement
LatAm Funds
flowsof profit or loss
(Total of current liabilities(Negative figures(Negative figuresand non-current liabilities)
represent
represent expenses)
payments)
As of April 1, 2022
Changes in third-party interests
Exchange differences on translating
third-party interests
As of June 30, 2022*

80,663(25,825)

25,825

-

7,889

-

-

62,727Note:* Exchange differences were included in “Exchange differences on translating foreign operations” in the condensed interim
consolidated statement of comprehensive income.

The Company has receivables from Third-party Investor in LatAm Funds. The changes in the receivables fromThird-Party Investor in LatAm Funds (included in “Other financial assets (non-current)” in the condensed
interim consolidated statement of financial position) are as follows: The details of the receivables from ThirdParty Investor in LatAm Funds are described in “Note 14. Related party transactions regarding a coinvestment program with restricted rights to receive distributions.”(Millions of yen)

As of April 1, 2022
Increase in receivables from Equity Acquisition Amount and accrued
premiums charged to third-party investor
Exchange differences on receivables
As of June 30, 2022

Receivables from third-party
investor in LatAm Funds
80,663c. Uncalled committed capital from Third-Party Investors
Uncalled committed capital from SVF1’s Third-Party Investors as of June 30, 2022 was $8.2 billion.

68

627
9,455
90,745

SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2022

(3) Management fees and performance fees
Terms and conditions of management fees, performance-linked management fees, and performance fees,
included in segment income from the SoftBank Vision Funds business, are as follows.
a. Management fees and performance fees in SVF1
Management fees to SBIA from SVF1 are, in accordance with the limited partnership agreement, calculated
by multiplying 1% per annum by Equity contributions used to fund investments and paid to SBIA by SVF1
quarterly. A clawback provision is attached to the management fees received, which is triggered under certain
conditions based on future investment performance.
Same as the performance-based distributions, the amount of the performance fees to SBIA from SVF1 iscalculated using the allocation method as specified in the limited partnership agreement. SBIA is entitled toreceive the performance fees when SVF1 receives cash through disposition, dividend and monetization of aninvestment.
From the inception of SVF1 to June 30, 2022, the cumulative amount of performance fees paid to SBIA was$439 million. For the three-month period ended June 30, 2022, no performance fees were paid to SBIA.
In addition, the performance fees received are subject to clawback provisions which are triggered undercertain conditions based on future investment performance.
b. Management fees and performance-linked management fees in SVF2
Management fees to SBGA from SVF2 are, in accordance with the constitutional agreements, calculated bymultiplying 0.7% per annum by the acquisition cost of investments and paid to SBGA by SVF2 quarterly.
The amount of the performance-linked management fees to SBGA from SVF2 is determined, based on theinvestment performance for certain periods specified in the constitutional agreement, according to the agreed
principle. SBGA is entitled to receive the performance-linked management fees after certain periods for theinvestment performance measurement specified in the constitutional agreement provided that there areavailable cash proceeds through disposition, dividend and monetization of an investment in SVF2.
From the inception of SVF2 to June 30, 2022, no performance-linked management fees were paid to SBGA.
c. Management fees and performance fees in LatAm Funds
Management fees to SBGA from LatAm Funds are, in accordance with the constitutional agreements,
calculated based on the acquisition cost of investments and paid to SBGA by LatAm Funds quarterly.
Same as the performance-based distributions, the amount of the performance fees to SBGA from LatAm
Funds is calculated using the allocation method as specified in the constitutional agreements. SBGA is entitled
to receive the performance fees when LatAm Funds receives cash through disposition, dividend andmonetization of an investment.
From the inception of LatAm Funds to June 30, 2022, no performance fees were paid to SBGA.
69

SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2022

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

As ofMarch 31, 2022

As ofJune 30, 2022

Current
Short-term borrowings
Commercial paper
Current portion of long-term borrowings
Current portion of corporate bonds
Current portion of financial liabilities relating to*sale of shares by prepaid forward contracts

1,551,238
527,201
2,377,864
519,870

922,711619,501
2,351,378
740,747

2,352,539

1,953,366

150

141

7,328,862

6,587,844

5,472,605
6,471,624

6,179,260
6,352,982

2,184,034

3,853,708

307

271

14,128,570

16,386,221

Current portion of installment payables
Total
Non-current
Long-term borrowings
Corporate bonds
Financial liabilities relating to sale of shares by*
prepaid forward contracts
Installment payables
Total
Note:

* These are primarily financial liabilities relating to sale of shares by prepaid forward contracts using Alibaba shares. The detailsof contracts are described in “(2) Transactions for sale of Alibaba shares by prepaid forward contracts.”(2) Transactions for sale of Alibaba shares by prepaid forward contracts
Wholly-owned subsidiaries of the Company entered into prepaid forward contracts with financial institutions
to procure funds using Alibaba shares, which are held by the subsidiaries.
In the prepaid forward contracts, the number of Alibaba shares settled by the prepaid forward contracts isfixed regardless of changes in market share price in the future in a forward contract or determined byreference to market price of the shares at the valuation dates prior to the settlement date. The latter type ofcontracts include Floor contract that a floor is set for the price of shares settled and Collar contract that a cap
and a floor are set for the price of shares settled. A part of wholly-owned subsidiaries of the Company entering
into prepaid forward contracts with financial institutions to procure funds using Alibaba shares (“Entities forfund procurement by using Alibaba shares”), in addition to the prepaid forward contracts, enter into the callspread (combination of long position of call option and short position of call option with different strikeprices) contracts in preparation for Alibaba shares price rise.
The aforementioned prepaid forward contracts are classified as hybrid financial instruments with embedded
derivatives. The Company accounts for the contracts by bifurcating the main contracts and embedded70SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2022

derivatives, and the main contracts are recognized as financial liabilities relating to sale of shares by prepaid
forward contracts then measured at amortized cost while the embedded derivatives are measured at fair value.
Also, the call spread contracts are measured at fair value as well. In addition, for the derivative financial assets
and the derivative financial liabilities recognized from the prepaid forward contracts and the call spread
contracts, a tax effect is recognized. The ending balance of the derivative financial assets and the derivative
financial liabilities recognized from the prepaid forward contracts and the call spread contracts are describedin “Note 6. Financial instruments.”
Entities for fund procurement by using Alibaba shares have the option to settle all of the prepaid forward
contracts by delivering cash, Alibaba shares, or a combination of cash and Alibaba shares. If Entities for fundprocurement by using Alibaba shares elect cash settlement, Entities for fund procurement by using Alibaba
shares will pay the cash equivalent to the fair value of the number of shares subject to the settlement, as
determined by reference to the market price of the shares.
Alibaba shares held by Entities for fund procurement by using Alibaba shares are pledged as collateral inaccordance with all of the prepaid forward contracts, and except for a certain contract, the Company granted
the right of use to the financial institutions with respect to such shares. However, the collateral can be releasedby cash settlement at the discretion of Entities for fund procurement by using Alibaba shares. Alibaba
continues to be an equity method associate of the Company after the completion of these transactions because
the Company still has significant influence over Alibaba via voting rights.
Entities for fund procurement by using Alibaba shares procured ¥1,353,700 million ($10.5 billion) in total byentering into forward contracts for the three-month period ended June 30, 2022.
Also, for the three-month period ended June 30, 2022, the settlement date of a part of prepaid forward
contracts arrived and they were settled by Alibaba shares. As a result, ¥604,888 million of current portion offinancial liabilities relating to sale of shares by prepaid forward contracts, ¥403,960 million of “Derivative
financial assets (current),” and ¥122,276 million of Alibaba shares included in “Investments accounted forusing the equity method” were derecognized from the condensed interim consolidated statement of financial
position, and ¥97,263 million of “Gain on investments at Investment Business of Holding Companies” wasrecorded in the condensed interim consolidated statement of profit or loss. Alibaba continues to be an equity
method associate of the Company after the completion of this transaction because the Company still has
significant influence over Alibaba via voting rights.
Other than the above, Entities for fund procurement by using Alibaba shares procured $6.8 billion by entering
into forward contracts on and after July 1, 2022.
As of June 30, 2022, the Company set ¥2,098,354 million of Alibaba shares, which is recognized as“Investments accounted for using the equity method” in the condensed interim consolidated statement offinancial position, as collateral for ¥1,953,366 million of current portion of financial liabilities relating to saleof shares by prepaid forward contracts and ¥3,472,313 million of financial liabilities relating to sale of sharesby prepaid forward contracts.

71SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2022

(3) Components of proceeds and repayment in short-term interest-bearing debt, net
The components of “Proceeds (repayment) in short-term interest-bearing debt, net” in the condensed interim
consolidated statement of cash flows are as follows:(Millions of yen)Three-month period ended Three-month period ended
June 30, 2021
June 30, 2022
Net (decrease) increase in short-term borrowings
Net increase in commercial paper
Total(247,396)
134,800

3,430
12,200(112,596)

15,630(4) Components of proceeds from interest-bearing debt
The components of “Proceeds from interest-bearing debt” in the condensed interim consolidated statement of cash
flows are as follows:(Millions of yen)Three-month period ended Three-month period ended
June 30, 2021
June 30, 2022
Proceeds from borrowings
Proceeds from issuance of corporate bonds
Proceeds from procurement by prepaid forward*
contracts using shares
Total

1,577,762

1,375,246

505,130-

329,852

1,353,700

2,412,744

2,728,946

Note:* The amount was procured under the prepaid forward contracts using Alibaba shares. The details are described in “(2)Transactions for sale of Alibaba shares by prepaid forward contracts.”(5) Components of repayment of interest-bearing debt
The components of “Repayment of interest-bearing debt” in the condensed interim consolidated statement of cash
flows are as follows:(Millions of yen)Three-month period ended Three-month period ended
June 30, 2021
June 30, 2022
Repayment of borrowings
Redemption of corporate bonds
Repayment for settlement of prepaid forward
contracts using shares
Total

72

(377,973)-(1,676,420)(56,203)(313,411)-(691,384)(1,732,623)

SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2022

6. Financial instruments
The details of derivative contracts are mainly as follows:

As ofMarch 31, 2022

(Millions of yen)
As ofJune 30, 2022

Carrying amount(fair value)

Carrying amount(fair value)

AssetsLiabilities

AssetsLiabilities

Prepaid forward contracts using Alibaba shares
1(Option contracts)

1,379,801-

1,058,700-

Call spread contracts relating to prepaid forward1
contracts using Alibaba shares

2,302

-

2,643

-

Prepaid forward contracts using Alibaba shares
1(Forward contracts)

190,334(67,672)

165,284(376,419)

Contingent consideration relating to acquisition of2
T-Mobile shares

591,429-735,899-

Short call option for T-Mobile shares to Deutsche
3
Telekom-(103,754)-(52,277)

Notes:
1. The details of prepaid forward contracts using Alibaba shares and call spread contracts relating to prepaid forward contracts using
Alibaba shares are described in “(2) Transactions for sale of Alibaba shares by prepaid forward contracts” under “Note 5. Interestbearing debt.”
2. Acquired due to the merger transaction with Sprint and T-Mobile US, Inc. on April 1, 2020 and the Company has the right toacquire 48,751,557 shares of T-Mobile for no additional consideration if certain conditions are met. In addition, “T-Mobile”
indicates T-Mobile US, Inc. after merging with Sprint.
3. The decrease was primarily due to the partial exercise of the call options by Deutsche Telekom AG (“Deutsche Telekom”). The
details are described in “Notes 2” in “(1) Gain and loss on investments at Investment Business of Holding Companies” under“Note 9. Gain on investments.”

73

SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2022

7. Foreign currency exchange rates
Exchange rates of the major currencies used for translating financial statements of foreign operations are as
follows:(1) Rate at the end of the period
(Yen)
As of
March 31, 2022
USD

As of
June 30, 2022

122.3919.26

CNY

136.6820.38(2) Average rate for the quarter
For the three-month period ended June 30, 2021
(Yen)
Three-month period ended
June 30, 2021
USD
CNY

110.0017.01

For the three-month period ended June 30, 2022
(Yen)
Three-month period ended
June 30, 2022
USD
CNY

129.0419.60

74

SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2022

8. Equity(1) Other equity instruments
On July 19, 2017, the Company issued USD-denominated Undated Subordinated Non-Call 6 years Resettable
Notes and USD-denominated Undated Subordinated Non-Call 10 years Resettable Notes (collectively, the“Hybrid Notes”).
The Hybrid Notes are classified as equity instruments in accordance with IFRSs because the Company has theoption to defer interest payments, the notes have no maturity date, and the Company has an unconditional rightto avoid delivering cash or another financial asset except for distribution of residual assets on liquidation.
(2) Treasury stock
Changes in treasury stock are as follows:(Thousands of shares)Three-month period ended Three-month period ended
June 30, 2021
June 30, 2022
Balance at the beginning of the period*
Increase during the period
Decrease during the period

351,298
25,980(367,437)

76,16456,298
(232)

9,841

132,230

Balance at the end of the period

Note:* For the three-month period ended June 30, 2022, due to purchases of treasury stock under the resolutions passed at the Boardof Directors meeting held on November 8, 2021, the number of treasury stock increased by 56,298 thousand shares (theamount purchased is ¥293,484 million).

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

As ofMarch 31, 2022
Equity financial assets at FVTOCI
Debt financial assets at FVTOCI
Cash flow hedges
Exchange differences on translating foreign*
operations
Total

As of
June 30, 2022

46,338298
1,696

49,885417(32,533)

2,447,826

4,544,520

2,496,158

4,562,289

Note:* The increase was primarily due to a weaker yen against the U.S. dollar compared with the exchange rate as of March 31, 2022.

75

SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2022

9. Gain on investments(1) Gain and loss on investments at Investment Business of Holding Companies
The components of gain and loss on investments at Investment Business of Holding Companies are as follows:(Millions of yen)Three-month period ended Three-month period ended
June 30, 2021
June 30, 2022
Gain relating to settlement of prepaid forward1
contracts using Alibaba shares
2
Gain relating to sales of T-Mobile shares
Realized gain on investments at asset management
subsidiaries
Unrealized gain (loss) on valuation of investments at
asset management subsidiaries
Derivative gain (loss) on investments at asset
management subsidiaries
Realized gain (loss) on investments
Unrealized gain (loss) on valuation of investments
3
Derivative gain on investments
Other
Total

-

97,263-

24,84265,416

7,176

17,703(69,489)

119,511(5,246)

19,265360,875
147,277
11,480(400)(27,605)
73,60911,073

741,527

111,223

Notes:
1. A part of prepaid forward contracts using Alibaba shares was settled by Alibaba shares. The details of contracts are describedin “(2) Transactions for sale of Alibaba shares by prepaid forward contracts” under “Note 5. Interest-bearing debt.”
2. On April 12, 2022, Deutsche Telekom exercised options to purchase T-Mobile shares granted by the Company to Deutsche
Telekom and the Company sold 21,153,145 of T-Mobile shares held by a wholly-owned subsidiary of the Company toDeutsche Telekom. In connection with the exercise, the wholly-owned subsidiary of the Company received $2.40 billion as
consideration for the sale of T-Mobile shares. As a result, ¥24,842 million of gain relating to sales of T-Mobile shares wasrecorded for the three-month period ended June 30, 2022.
Cumulative gains on T-Mobile shares and the options associated with the transaction are ¥22,528 million. Of this, ¥6,012
million of loss was recorded for the fiscal year ended March 31, 2021, and ¥3,698 million of gain was recorded for the fiscal
year ended March 31, 2022.
3. For the three-month period ended June 30, 2022, ¥71,201 million of derivative gain on investments was recorded due tochanges in the fair value of contingent consideration related to the acquisition of T-Mobile shares through the merger
transaction with Sprint and T-Mobile US, Inc. The details of contingent consideration are described in “Notes 2” under “Note
6. Financial instruments.”(2) Gain and loss on investments at SoftBank Vision Funds
The details are described in “Note 4. SoftBank Vision Funds business.”

76SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2022

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

Three-month period
ended June 30, 2021

Three-month period
ended June 30, 2022

(82,799)(114,139)

11. Derivative loss (excluding gain (loss) on investments)
For the three-month period ended June 30, 2022, derivative loss of ¥333,588 million was recorded for the prepaid
forward contracts using Alibaba shares and the call spread contracts relating to prepaid forward contracts using
Alibaba shares. The details of the contracts are described in “(2) Transactions for sale of Alibaba shares by
prepaid forward contracts” under “Note 5. Interest-bearing debt.”

12. Other gain
The components of other gain and loss are as follows:(Millions of yen)Interest income
Gain relating to loss of control over subsidiaries
Dilution gain from changes in equity interest
Reversal of impairment losses on equity method
investments
Other
Total

77

Three-month period
ended June 30, 2021

Three-month period
ended June 30, 2022

8,720
77,402
3,578

8,618
10,406
4,656

13,059-1,490(18,612)104,249

5,068

SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2022

13. Supplemental information to the condensed interim consolidated statement of cash flows(1) Income taxes paid
For the three-month period ended June 30, 2022
Payment of withholding income taxes related to dividends within the group companies of ¥61,279 million is
included in “Income taxes paid.”(2) Proceeds from sales/redemption of investments
For the three-month period ended June 30, 2022
¥309,696 million of proceeds received from sales of T-Mobile shares is included in “Proceeds fromsales/redemption of investments.”(3) Significant non-cash transactions
For the three-month period ended June 30, 2022
The settlement date of a part of prepaid forward contracts arrived, and ¥604,888 million of current portion offinancial liabilities relating to sale of shares by prepaid forward contracts and ¥403,960 million of “Derivative
financial assets (current)” were settled by Alibaba shares. The details are described in “(2) Transactions forsale of Alibaba shares by prepaid forward contracts” under “Note 5. Interest-bearing debt.”

78

SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2022

14. Related party transactions regarding a co-investment program with restricted rights to receive
distributions
MgmtCo, which is the investor in SVF2 LLC, a subsidiary of the Company under SVF2, and the investor in SLA
LLC, a subsidiary of the Company under the LatAm Funds, is a company controlled by Masayoshi Son,
Representative Director, Corporate Officer, Chairman & CEO of SoftBank Group Corp., and a related party of
the Company. The co-investment program with restricted rights to receive distributions to SVF2 and LatAm
Funds has been introduced from the three-month period ended September 30, 2021 for the purpose of enabling
Masayoshi Son to make a co-investment in SVF2 and LatAm Funds with the Company, sharing risk of losses aswell as benefit of profits in the success of SVF2 and LatAm Funds, and leading to enhanced focus on the
management of investments held by them, which in turn is intended to contribute to increases in the Company’s
earnings. In making a co-investment in SVF2 and LatAm Funds under the terms of the program, MgmtCo both
receives the benefit of profits and assumes the risk of losses from SVF2 and LatAm Funds, and MgmtCo’s rightto receive distributions from its investment is subject to certain restrictions.
Contributions to SVF2 LLC and SLA LLC are classified as “Equity” and “Preferred Equity” depending on theterms and conditions of distribution. SVF2 LLC and SLA LLC each have issued Equity entitled to performancebased distributions that are allocated to the Company and MgmtCo based on the proportion of their respective
contributions. The Company’s Equity interest in each of SVF2 LLC and SLA LLC is 82.75%, and MgmtCo’s
Equity interest in each of SVF2 LLC and SLA LLC is 17.25%. The Company’s investment in SVF2 LLC is madethrough SoftBank Vision Fund II-2 L.P. and its subsidiaries, and its investment in SLA LLC is made through
SBLA Latin America Fund LLC and its subsidiaries.

79SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2022

Related party transactions of the Company are as follows:(1) Transactions between SVF2 and related parties（Millions of yen）
Name of thecompany orindividual

Masayoshi Son(MASA USA
LLC (MgmtCo))

Nature ofrelationship

Chairman &CEO of SoftBank
Group Corp. andrelated entities ofwhich he holds
more than onehalf of the voting
rightsNature of transaction

For the three-month
period ended June30, 2022
Amount oftransaction

Receipt of capital
contribution in SVF2
LLC and related
1,2
adjustments-

The premium received
on SVF2 LLC’s
receivables

2,654($21 million)

MgmtCo’s Equity
5,6
interests in SVF2 LLC

Net balance at period end(Receivables in SVF2 LLC less7
MgmtCo’s Equity interests in SVF2 LLC)

As of
June 30, 2022
Balance atperiod end
3,4

385,483($2,820 million)

3-

93,244($682 million)

292,239($2,138 million)

Notes:
1. Restrictions on rights to receive distributions to MgmtCo
MgmtCo’s right to receive distributions from its investment is subject to certain restrictions. Distributions from SVF2 LLC to
MgmtCo are fully restricted and are not paid until the sum of proceeds received by SVF2 LLC from realized investments plus theaggregate fair value of all of SVF2 LLC’s unrealized investments (net of borrowings) exceeds 130% of the aggregate acquisition
cost of all of SVF2 LLC’s investments. After the ratio exceeds 130%, restrictions on distributions to MgmtCo are released
proportionately in increments of 10%, and when the ratio reaches 200%, all restrictions are released and MgmtCo is entitled toreceive the full amount of the distribution. In the event that, upon the liquidation of SVF2 LLC, the amount of the distributions
received by MgmtCo exceeds the amount that would have been distributed to MgmtCo if the ratio in effect at the time ofliquidation was applied throughout the life of SVF2 LLC, then any such excess amounts will be subject to clawback from
MgmtCo.
2. Nature of the Equity contribution by MgmtCo
The Equity interests contributed by the Company and MgmtCo are subordinated to the Preferred Equity contributed separately by
the Company to SVF2 LLC. If there is a shortfall in the amount of return of Preferred Equity contributions and the amount of
fixed distributions to be received by the Preferred Equity holders at the time of the final profit distribution by SVF2 LLC, then
MgmtCo is obligated to pay the shortfall proportional to Equity interests’ ratio up to the total amount of return of Equity
contributions and the distributions received by MgmtCo.

80

SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2022

3. Balance at period end of receivables from MgmtCo for receipt of capital contribution and related adjustments
Balance at period end is the balance of SVF2 LLC’s receivables consist of the balance related to receipt of capital contribution,
related adjustments and premiums received from MgmtCo, less any decrease in receivables due to offsetting settlement with
distributions to MgmtCo.
The amount of the transaction for “Receipt of capital contribution in SVF2 LLC and related adjustments” is MgmtCo’s Equity
Acquisition Amount in SVF2 LLC at the inception of the program, which consists of the amount calculated based on MgmtCo’s
Equity interests of 17.25% in the SVF2’s initial acquisition costs of the relevant portfolio companies held by SVF2 LLC andrelated adjustments calculated based on 17.25% interest in the increase in the portfolio companies’ fair value from the initialacquisition costs at SVF2 to June 30, 2021, and the adjustment equivalent to interests for the period from the Company’scontribution to SVF2 until June 30, 2021.
MgmtCo is entitled to make full or partial payment of its Equity Acquisition Amount at any point in time at its discretion fromthe date it became an investor in SVF2 LLC to the end of the company life of SVF2 LLC. MgmtCo is required to pay a premiumof 3% per annum on the unpaid Equity Acquisition Amount until the unpaid amount is paid in full. “The premium received on
SVF2 LLC’s receivables” refers to the amount of such premium accrued in the current period. MgmtCo is also entitled to makefull or partial payment of the premium at any point in time, at its discretion on the same terms and conditions as Equity
Acquisition Amount.
Any distributable amount from SVF2 LLC to MgmtCo is offset against the receivables at the time of the distribution notice andno distribution payments to MgmtCo are made until the SVF2 LLC’s receivables are paid in full.
4. Collateral and other credit protection for receivables
In order to secure the receivables of SVF2 LLC related to Equity Acquisition Amount and the premium thereon, all of the Equity
interests in SVF2 LLC held by MgmtCo were pledged as collateral. In the event that MgmtCo pays into the receivables or offsets
such receivables with distributions due to it from SVF2 LLC, the collateral is released to the extent that the cumulative amountsof payments and offsets exceeds the balance of the receivables after deduction of such cumulative amounts. Masayoshi Son also
provides a personal guarantee to the receivables up to the balance of the receivables. In addition, as of June 30, 2022, 8,897,100
shares of SoftBank Group Corp. are deposited in SVF2 LLC by Masayoshi Son. The deposited shares of SoftBank Group Corp.
will be released only where the entire amount of receivables is settled. SVF2 LLC may acquire the deposited SoftBank Group
Corp. shares without consideration where there are any unpaid receivables in SVF2 LLC after the enforcement of the collateraland personal guarantees by SVF2 LLC.
5. MgmtCo’s Equity interest in SVF2 LLC
The amount represents SVF2 LLC’s net assets attributable to MgmtCo (before deduction of receivables), which is included in“Third-party interests in SVF” in the condensed interim consolidated statement of financial position.
6. Management fee and performance-linked management fees to be charged to MgmtCo
The terms of the management fee and performance-linked management fee to be charged to MgmtCo are the same as those to be
charged to the Company as an Equity investor in SVF2 LLC.
7. Net balance at period end
Net balance at period end is the balance of receivables held by SVF2 LLC of ¥385,483 million ($2,820 million) less MgmtCo’s
Equity interest in SVF2 LLC of ¥93,244 million ($682 million).

81

SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2022

(2) Transactions between LatAm Funds and related parties（Millions of yen）
Name of thecompany orindividual

Masayoshi Son(MASA USA
LLC (MgmtCo))

Nature ofrelationship

Chairman &CEO of SoftBank
Group Corp. andrelated entities ofwhich he holds
more than onehalf of the voting
rightsNature of transaction

For the three-month
period ended June30, 2022
Amount oftransaction

Receipt of capital
contribution in SLA
LLC and related
1, 2
adjustments

As ofJune 30, 2022
Balance atperiod end
3,4-

The premium received
on SLA LLC’s
receivables

627($5 million)

MgmtCo’s Equity
5,6
interests in SLA LLC-

Net balance at period end(Receivables in SLA LLC less7
MgmtCo’s Equity interests in SLA LLC)

90,745($664 million)

362,727($459 million)

28,018($205 million)

Notes:
1. Restrictions on rights to receive distributions to MgmtCo
MgmtCo’s right to receive distributions from its investment is subject to certain restrictions. Distributions from SLA LLC to
MgmtCo are fully restricted and are not paid until the sum of proceeds received by SLA LLC from realized investments plus theaggregate fair value of all of SLA LLC’s unrealized investments (net of borrowings) exceeds 130% of the aggregate acquisition
cost of all of SLA LLC’s investments. After the ratio exceeds 130%, restrictions on distributions to MgmtCo are released
proportionately in increments of 10%, and when the ratio reaches 200%, all restrictions are released and MgmtCo is entitled toreceive the full amount of the distribution. In the event that, upon the liquidation of SLA LLC, the amount of the distributions
received by MgmtCo exceeds the amount that would have been distributed to MgmtCo if the ratio in effect at the time ofliquidation was applied throughout the life of SVF2 LLC, then any such excess amounts will be subject to clawback from
MgmtCo.
2. Nature of the Equity contribution by MgmtCo
The Equity interests contributed by the Company and MgmtCo are subordinated to the Preferred Equity contributed separately by
the Company to SLA LLC. If there is a shortfall in the amount of return of Preferred Equity contributions and the amount of
fixed distributions to be received by the Preferred Equity holders at the time of the final profit distribution by SLA LLC, then
MgmtCo is obligated to pay the shortfall proportional to Equity interests’ ratio up to the total amount of return of Equity
contributions and the distributions received by MgmtCo.
3. Balance at period end of receivables from MgmtCo for receipt of capital contribution and related adjustments
Balance at period end is the balance of SLA LLC’s receivables which consists of the balance related to receipt of capital
contribution, related adjustments, and premiums received.
The amount of the transaction for “Receipt of capital contribution in SLA LLC and related adjustments” is MgmtCo’s Equity
Acquisition Amount in SLA LLC at the inception of the program, which consists of the amount calculated based on MgmtCo’s
Equity interests of 17.25% in the LatAm Funds’ initial acquisition costs of the portfolio companies held by LatAm Funds andrelated adjustments calculated based on 17.25% interest in the increase in the portfolio companies’ fair value from the initialacquisition costs at LatAm Funds to June 30, 2021, and the adjustment equivalent to interests for the period from the Company’s

82SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2022

contribution to LatAm Funds until June 30, 2021.
MgmtCo is entitled to make full or partial payment of its Equity Acquisition Amount at any point in time at its discretion fromthe date it became an investor in SLA LLC to the end of the company life of SLA LLC. MgmtCo is required to pay a premium of
3% per annum on the unpaid Equity Acquisition Amount until the unpaid amount is paid in full. “The premium received on SLA
LLC’s receivables” refers to the amount of such premium accrued in the current period. MgmtCo is also entitled to make full or
partial payment of the premium at any point in time, at its discretion on the same terms and conditions as Equity Acquisition
Amount.
Any distributable amounts from SLA LLC to MgmtCo are offset against the receivables at the time of the distribution notice andno distribution payments to MgmtCo are made until the SLA LLC’s receivables are paid in full.
4. Collateral and other credit protection for receivables
In order to secure the receivables of SLA LLC related to Equity Acquisition Amount and the premium thereon, all of the Equity
interests in SLA LLC held by MgmtCo were pledged as collateral. In the event that MgmtCo pays into the receivables or offsets
such receivables with distributions due to it from SLA LLC, the collateral is released to the extent that the cumulative amounts of
payments and offsets exceeds the balance of the receivables after deduction of such cumulative amounts. Masayoshi Son also
provides a personal guarantee to the receivables up to the balance of the receivables. In addition, as of June 30, 2022, 2,168,500
shares of SoftBank Group Corp. are deposited in SLA LLC by Masayoshi Son. The deposited shares of SoftBank Group Corp.
will be released only where the entire amount of receivables is settled. SLA LLC may acquire the deposited SoftBank Group
Corp. shares without consideration where there are any unpaid receivables in SLA LLC after the enforcement of the collateraland personal guarantees by SLA LLC.
5. MgmtCo’s Equity interest in SLA LLC
The amount represents SLA LLC’s net assets attributable to MgmtCo (before deduction of receivables), which is included in“Third-party interests in SVF” in the condensed interim consolidated statement of financial position.
6. Management fee and performance fees to be charged to MgmtCo
The terms of the management fee and performance fee to be charged to MgmtCo are the same as those to be charged to theCompany as an Equity investor in SLA LLC.
7. Net balance at period end
Net balance at period end is the balance of receivables held by SLA LLC of ¥90,745 million ($664 million) less MgmtCo’s
Equity interest in SLA LLC of ¥62,727 million ($459 million).

83