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 4 of this report.

SoftBank Group Corp.
Consolidated Financial Report
For the fiscal year ended March 31, 2017 (IFRS)Tokyo, May 10, 2017

1.

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

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

OperatingincomeNet sales
Amount%Amount%Incomebefore incometax
Amount%

Net income

Net income
attributable toowners of theparentTotal
comprehensive
incomeAmountAmountAmount%%%Fiscal year ended
March 31, 2017

¥8,901,004 0.2 ¥1,025,999 12.9 ¥712,526 (22.5) ¥1,474,430 164.1 ¥1,426,308 200.8 ¥1,433,901 452.4

Fiscal year ended
March 31, 2016

¥8,881,777 -¥908,907-¥919,161¥558,241 (26.9) ¥474,172 (29.1) ¥259,592 (77.0)-

Ratio of net income
to equity,
Ratio of income Ratio of operating
attributable tobefore income tax income to net sales
to total assets (%)(%)
owners of theparent (%)

Basic earnings
per share (yen)Diluted earnings
per share (yen)Fiscal year ended
March 31, 2017

¥1,287.01¥1,275.64

46.0

3.1

11.5

Fiscal year ended
March 31, 2016

¥402.49¥388.32

17.4

4.4

10.2

Notes:
1. Income on equity method investments
Fiscal year ended March 31, 2017:¥ 321,550 million
Fiscal year ended March 31, 2016:¥ 375,397 million
2. Net sales, operating income, and income before income tax for the fiscal year ended March 31, 2017 are presented based on theamounts from continuing operations only. Year-on-year percentage changes in net sales, operating income, and income before
income tax for the fiscal year ended March 31, 2016 are not presented because corresponding amounts for the fiscal year ended
March 31, 2016 are revised and presented respectively.
Please refer to page 49 “Note 16. Discontinued operations” under “4. Consolidated Financial Statements and Primary Notes (6)Notes to Consolidated Financial Statements” for details.

(2) Financial Position

Total assets

Total equity

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

Equity per share
attributable toowners of theparent (yen)As of March 31, 2017¥24,634,212¥4,469,730¥3,586,352

14.6

3,292.40

As of March 31, 2016

¥20,707,192¥3,505,271¥2,613,613

12.6

2,278.85

(3) Cash Flows2.

Operating activities

Investing activities

Financing activities

Cash and cash
equivalents
at the end of the year

Fiscal year ended
March 31, 2017

¥1,500,728¥(4,213,597)¥2,380,746¥2,183,102

Fiscal year ended
March 31, 2016

¥940,186¥(1,651,682)¥43,270¥2,569,607

Dividends
Dividends per shareFirst quarter
Fiscal year ended
March 31, 2016
Fiscal year ended
March 31, 2017
Fiscal year ending
March 31, 2018
(Forecasted)

Fiscal year ended
March 31, 2016
Fiscal year ended
March 31, 2017
Fiscal year ending
March 31, 2018
(Forecasted)

Second quarter

Third quarter

Fourth quarter

Total

(yen)

(yen)

(yen)

(yen)

(yen)

-

20.00

-

21.00

41.00

-

22.00

-

22.00

44.00

-

22.00

-

22.00

44.00

Total amount ofdividends(Annual)Payout ratio(Consolidated)

Ratio of dividend
to equity
attributable toowners of theparent(Consolidated)(Millions of yen)%%

47,56210.2

1.8

47,921

3.4

1.6

-

* Notes(1) Significant changes in scope of consolidation (changes in scope of consolidation of specified subsidiaries): Yes
Newly consolidated: Two companies
ARM PIPD Holdings One, LLC ARM PIPD Holdings Two, LLC
Excluded from consolidation: One company
Foxconn Ventures Pte. Ltd.
Please refer to page 26 “(1) Significant Changes in Scope of Consolidation for the Fiscal Year Ended March 31, 2017”
under “3. Notes to Summary Information” for details.
(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: Yes
Please refer to page 26 “(2) Changes in Accounting Estimates” under “3. Notes to Summary Information” for details.
(3) Number of shares issued (common stock)[1] Number of shares issued (including treasury stock):
As of March 31, 2017:
1,100,660,365 shares
As of March 31, 2016:
1,200,660,365 shares[2] Number of treasury stocks:
As of March 31, 2017:
11,378,076 shares
As of March 31, 2016:
53,760,198 shares[3] Number of average stocks during twelve-month period (April-March):
Fiscal year ended March 31, 2017:
1,108,236,739 sharesFiscal year ended March 31, 2016:
1,178,097,662 shares

[For Reference]
Financial Highlights (Non-Consolidated)(1) Non-Consolidated Results of Operations(Percentages are shown as year-on-year changes)

Net sales

Operating income

Ordinary income
AmountAmount%Amount%Fiscal year ended
March 31, 2017¥46,3120.4¥8,595

Fiscal year ended
March 31, 2016

¥46,118(2.8)¥11,478

Net income%

Amount%(25.1)¥2,870,956 140.6¥2,745,949

252.1(56.5)¥1,193,181¥779,783-

Net income pershare-basic (yen)Net income pershare-diluted (yen)Fiscal year ended
March 31, 2017

¥2,477.76¥2,475.49

Fiscal year ended
March 31, 2016

¥661.90¥661.59-(2) Non-Consolidated Financial Position
Total assets

Net Assets

Equity ratio (%)

Shareholders’ equity
per share (yen)As of March 31, 2017¥12,555,813¥3,707,806

29.5¥3,402.05

As of March 31, 2016

¥7,570,937¥1,360,467

18.0¥1,186.19

Note: Shareholders’ equity (Non-consolidated)
As of March 31, 2017:¥3,705,790 million
As of March 31, 2016:¥1,360,447 million(3) Differences in Non-Consolidated Operating Results from the Previous Fiscal Year
The increase in ordinary income and net income in the fiscal year ended March, 31 2017 from the previous fiscal year
ended March, 31 2016 was mainly attributable to a ¥1,677,736 million year-on-year increase in dividends fromsubsidiaries and associates.
Financial Highlights (Non-Consolidated) are prepared in accordance with Accounting Principles Generally Accepted in Japan.
* This consolidated financial report is not subject to audit procedures.
* Note to forecasts on the consolidated results of operations and other items
The descriptions regarding the future are estimated based on the information that the Company is able to obtain at the present
point and assumptions which are deemed to be reasonable. However, actual results may be different due to various factors.
On May 10, 2017, 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 our website in both Japanese and English at
http://www.softbank.jp/en/corp/irinfo/. The Earnings Results Data Sheet will also be posted on the Company’s website around 4
p.m. on the same day at http://www.softbank.jp/en/corp/irinfo/presentations/.

SoftBank Group Corp. Consolidated Financial Report
For the fiscal year ended March 31, 2017

(Appendix)
Contents
1. Results of Operations ............................................................................................................................................... P. 2
(1) Overview of Results of Operations ................................................................................................................... P. 2
a. Consolidated Results of Operations ................................................................................................................ P. 2
b. Results by Segment ........................................................................................................................................ P. 7
(2) Overview of Financial Position ........................................................................................................................ P. 19(3) Overview of Cash Flows .................................................................................................................................. P. 24(4) Forecasts ........................................................................................................................................................... P. 25
2. Basic Approach to the Selection of Accounting Standards ...................................................................................... P. 25
3. Notes to Summary Information ............................................................................................................................... P. 26(1) Significant Changes in Scope of Consolidation for the Fiscal Year Ended March 31, 2017 ............................. P. 26(2) Changes in Accounting Policies and Accounting Estimates .............................................................................. P. 26
4. Consolidated Financial Statements and Primary Notes ......................................................................................... P. 27(1) Consolidated Statements of Financial Position ................................................................................................. P. 27(2) Consolidated Statements of Income and Comprehensive Income ..................................................................... P. 29(3) Consolidated Statements of Changes in Equity ................................................................................................. P. 31(4) Consolidated Statements of Cash Flows ........................................................................................................... P. 33(5) Significant Doubt about Going Concern Assumption ....................................................................................... P. 34(6) Notes to Consolidated Financial Statements ..................................................................................................... P. 34
Definition of Company Names and Abbreviations Used in this Appendix
Company names and abbreviations used in this appendix, except as otherwise stated or interpreted differently in thecontext, are as follows:
Company Name / Abbreviation

Definition

SoftBank Group Corp.
SoftBank Group Corp. (stand-alone basis)
The Company
SoftBank Group Corp. and its subsidiaries*Each of the following abbreviations indicates the respective company, and its subsidiaries if any.
SprintSprint Corporation
Brightstar
Brightstar Global Group Inc.
ARM
ARM Holdings plc
Alibaba
Alibaba Group Holding Limited
SupercellSupercell Oy
GungHoGungHo Online Entertainment, Inc.
Fiscal year ended March 31, 2017
The fiscal year
Three-month period ended March 31, 2017
The fourth quarter
March 31, 2017
The fiscal year-end
March 31, 2016
The previous fiscal year-end

Consolidation of ARM
The Company consolidated ARM on September 5, 2016 following the completion of its acquisition. Accordingly, theCompany established a new reportable segment, “ARM.” For details of the acquisition of ARM, see “ARM” under “4.
Consolidated Financial Statements and Primary Notes (6) Notes to Consolidated Financial Statements 3. Business combinations.”

1

SoftBank Group Corp. Consolidated Financial Report
For the fiscal year ended March 31, 2017

1. Results of Operations(1) Overview of Results of Operations
a. Consolidated Results of Operations(Millions of yen)

Fiscal year ended March 31
2016
2017

ChangeChange %Continuing operations
Net sales
Operating income
Income before income tax
Net income from continuing operations

8,881,777
908,907919,161
496,484

8,901,004
1,025,999
712,526
919,631

19,227
117,092(206,635)
423,1470.2%
12.9%(22.5%)
85.2%

Discontinued operations
Net income from discontinued operations

61,757554,799

493,042-

Net income
Net income attributable to owners of the parent

558,241
474,172

1,474,430
1,426,308

916,189
952,136

164.1%
200.8%

Reference: Average exchange rates used for translation
Fiscal year ended March 2016

USD / JPY

Fiscal year ended March 2017

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

¥121.34¥121.91¥121.07¥116.95¥109.07¥102.91¥108.72¥113.76< Results Related to Supercell >The Company sold all of its shares in Supercell to an affiliate of Tencent Holdings Limited on July 29, 2016. Accordingly,
Supercell’s net income until July 29, 2016 is presented as discontinued operations, separately from continuing operations.
Net income of Supercell for the previous fiscal year has been revised retrospectively and presented under discontinued
operations. Supercell ceased to qualify as the Company’s subsidiary and was therefore excluded from the scope of consolidation on July 29, 2016 when the shares were transferred.
Note: See “Supercell” under “4. Consolidated Financial Statements and Primary Notes (6) Notes to Consolidated Financial Statements
16. Discontinued operations” for details.

Fiscal year ended March 2016
Q1

Earnings for the
fiscal year ended
March 2016

Q2

Q3

Q4

Fiscal year ended March 2017
Q1

Q2

Continuing operations(Supercell earnings were included as a subsidiary)
July 29, 2016: Supercell was
excluded from the scope of
consolidation

Earnings for the
fiscal year ended
March 2017

Discontinued operations
Supercell earnings are included in net income from discontinued operations

2

Q3

Q4

SoftBank Group Corp. Consolidated Financial Report
For the fiscal year ended March 31, 2017

An overview of the consolidated results of operations for the fiscal year is as follows:(Continuing Operations)(a) Net Sales
Net sales increased by ¥19,227 million (0.2%) year on year to ¥8,901,004 million. Net sales of the Domestic Telecommunications segment and the Yahoo Japan segment increased, and the ARM segment was newly added. Meanwhile, net salesof the Sprint segment and the Distribution segment decreased. Net sales of the Sprint segment increased in U.S. dollar
terms but declined in yen terms due to the stronger yen.
(b) Operating Income
Operating income increased by ¥117,092 million (12.9%) year on year to ¥1,025,999 million. Segment income increasedby ¥31,183 million in the Domestic Telecommunications segment and ¥124,938 million in the Sprint segment. The newly
established ARM segment also added ¥12,919 million of segment income.
On the other hand, segment income declined by ¥32,968 million in the Yahoo Japan segment, reflecting the inclusion in
the previous fiscal year of gain from remeasurement relating to business combination of ¥59,441 million for the consolidation of ASKUL Corporation. Segment loss in the Distribution segment deteriorated by ¥8,763 million to ¥10,047 million.
This included ¥30,260 million (note) of impairment loss for the fiscal year on goodwill of Brightstar.
Note: See “10. Other operating loss” under “4. Consolidated Financial Statements and Primary Notes (6) Notes to Consolidated Financial
Statements” for details.

(c) Finance Cost
Finance cost increased by ¥26,567 million (6.0 %) year on year to ¥467,311 million, mainly due to an increase in interest
expense at SoftBank Group Corp.

(d) Income on Equity Method Investments
Income on equity method investments decreased by ¥53,847 million (14.3%) year on year to ¥321,550 million. This was mainly
due to a decline in income on equity method investments related to Alibaba.
Alibaba’s IFRS-based adjusted net income for the twelve months ended December 31, 20161 increased by CNY 4,692 million(7.6%) year on year to CNY 66,045 million. However, the Company’s income on equity method investments in Alibaba declinedby ¥50,491 million (13.3%) to ¥330,164 million, due to the stronger yen and a decrease in the Company’s interest ratio in Alibaba
following the sale of a portion of Alibaba shares.
Reconciliations to IFRSs for the twelve months ended December 31, 2016 mainly reflects the amount of changes in the fairvalue of Alibaba’s financial instruments at FVTPL (Fair Value Through Profit or Loss) as income and loss. Reconciliations to
IFRSs for the same period of the previous fiscal year mainly incorporates the reversal of a gain on remeasurement of CNY 24,734
million included in net income on U.S. GAAP basis. The gain had been recognized in association with loss of control of Alibaba
Pictures Group Ltd.

1The Company applies the equity method to the financial statements of Alibaba on a three-month time lag, as it is impracticable to conform the reporting
period of Alibaba due to the contract with Alibaba, among others. However, the Company performs necessary adjustments for material transactions or
events arising during the lag period and publicly announced by Alibaba.

3

SoftBank Group Corp. Consolidated Financial Report
For the fiscal year ended March 31, 2017(e) Gain on Sales of Equity Method Associates
Gain on sales of equity method associates was ¥238,103 million compared to a gain of ¥12,428 million in the previous
fiscal year. This was mainly due to the sale of a portion of Alibaba shares to Alibaba, two Singaporean sovereign wealthfunds, and Alibaba Partnership2.

(f) Derivative Gain and Loss
Derivative loss was ¥252,815 million compared to a gain of ¥12,788 million in the previous fiscal year. This was mainly
attributable to loss on valuation of derivatives of ¥ 232,729 million recorded in relation to a collar transaction included ina variable prepaid forward contract for Alibaba shares.
The collar transaction is measured at the end of each quarter based on fair value (primarily linked to the share price of
Alibaba). The cumulative derivative gain and loss for the three years, from the conclusion of the variable prepaid forward
contract on June 10, 2016 until the settlement date, will be a loss of $900 million, equal to the amount of derivative assets
initially recognized.
Note: See “(2) Transaction for sale of Alibaba shares by variable prepaid forward contract” under “4. Consolidated Financial Statements
and Primary Notes (6) Notes to Consolidated Financial Statements 7. Interest-bearing debt” for details.

(g) Gain and Loss from Financial Instruments at FVTPL
Loss on financial instruments at FVTPL was ¥160,419 million compared to a gain of ¥114,377 million in the previous
fiscal year. This mainly resulted from recording a loss as the amount of changes in the fair value of the Company’s financial
instruments at FVTPL from the previous fiscal year-end to the fiscal year-end. Financial instruments at FVTPL included
preferred shares of Jasper Infotech Private Limited, which operates the e-commerce website snapdeal.com in India, and
ANI Technologies Private Limited, which operates the taxi booking platform Ola, also in India.

(h) Other Non-operating Income and Loss
Other non-operating income was ¥7,419 million compared to a loss of ¥ 63,992 million in the previous fiscal year. The
primary components for the fiscal year were as follows:(Millions of yen)

Dilution gain from changes
in equity interest
Foreign exchange gain andloss

2

Fiscal year ended March 31
2016
2017
14,90377,540(41,414)

Loss on loss of control-

Impairment loss on assets
classified as held for sale-

Primary components
Gain from private placement of new shares by Alibaba

Gain from settlement and translation of foreign currency-denominated borrowings from a foreign subsidiary(79,278) Loss due to SOFTBANK GROUP CAPITAL APAC
PTE. LTD. becoming an equity method associate asa result of a private placement of new shares(42,540) Loss due to a difference between the valuation of the248,300,000 GungHo shares tendered by the Company, out of the 272,604,800 shares held, at the tender offer price of ¥294 per share and their carrying
amount on a consolidated basis
53,336

Alibaba Partnership is not an associate of Alibaba.

4SoftBank Group Corp. Consolidated Financial Report
For the fiscal year ended March 31, 2017

Note: See “15. Other non-operating income (loss)” under “4. Consolidated Financial Statements and Primary Notes (6) Notes to Consolidated Financial Statements” for details.

(i) Income before Income Tax
As a result of (b) to (h), income before income tax decreased by ¥206,635 million (22.5%) year on year to ¥712,526 million.

(j) Income Taxes
Income taxes of ¥207,105 million were credited (profit) for the fiscal year compared to an expense of ¥422,677 million in
the previous fiscal year.
The credited income taxes mainly accompanied a transaction (the “Transaction”) from June to August 2016 in which
SoftBank Group Corp.’s then wholly-owned subsidiary, SOFTBANK GROUP CAPITAL APAC PTE. LTD. (“APAC,”
currently Foxconn Ventures Pte. Ltd., a joint venture of Foxconn Technology Group of Taiwan and the Company), sold aportion of its Alibaba shares to SoftBank Group Corp., SoftBank Group Corp.’s wholly-owned subsidiary West Raptor
Holdings, LLC (“WRH LLC”), and third parties. As a consequence of the Transaction, the tax basis of Alibaba shares
exceeded its consolidated carrying amount on the accounting basis. The Company therefore reversed deferred tax liabilitiesof ¥382,604 million previously recorded for the temporary differences (between the consolidated carrying amount on theaccounting base and the tax base) in the investment in Alibaba. Also, because the Company plans to sell these shares in
2019, the Company recognized deferred tax assets of ¥179,373 million for the temporary difference between the carrying
amount on the accounting base and the tax base of the Alibaba shares sold to WRH LLC.
For the nine month period ended December 31, 2016, SoftBank Group Corp. had recognized deferred tax liabilities of¥913,012 million on its expected taxable income for the next fiscal year (April 1, 2017 to March 31, 2018) out of theTransaction. SoftBank Group Corp. had also recorded deferred tax assets of ¥60,451 million, as it was deemed probable
that, in conjunction with the Transaction, taxable profit would be available against which carryforwards and a deductible
temporary differences could be utilized. However, because ownership of APAC`s outstanding shares was below 50% on
March 31, 2017 and taxable profit was not expected at SoftBank Group Corp. for the next fiscal year, SoftBank Group
Corp. did not recognize any deferred tax liabilities relating to the Transaction for the fiscal year ended March 2017. In
addition, SoftBank Group Corp. did not recognize any deferred tax assets for the fiscal year ended March 2017, as it wasdeemed probable that taxable profit would not be available against which carryforwards and deductible temporary differences could be utilized.

(k) Net Income from Continuing Operations
As a result of (i) and (j), net income from continuing operations increased by ¥423,147 million (85.2%) year on year to¥919,631 million.

(Discontinued Operations)(l) Net Income from Discontinued Operations
Net income from discontinued operations was ¥554,799 million, compared to ¥61,757 million in the previous fiscal year.
This was due to Supercell’s income after income tax of ¥28,246 million recorded for the period from April 1 to July 29,
2016, as well as after-tax gain on sale of Supercell shares of ¥526,553 million, which was not recorded in the previous
fiscal year.

5SoftBank Group Corp. Consolidated Financial Report
For the fiscal year ended March 31, 2017(m) Net Income
As a result of (k) and (l), net income increased by ¥916,189 million (164.1%) year on year to ¥1,474,430 million.

(n) Net Income Attributable to Owners of the Parent
After deducting net income attributable to non-controlling interests such as Yahoo Japan Corporation and Sprint from (m),net income attributable to owners of the parent increased by ¥952,136 million (200.8%) year on year to ¥1,426,308 million.

(o) Comprehensive Income
Comprehensive income increased by ¥1,174,309 million year on year to ¥1,433,901 million. Of this, comprehensive income attributable to owners of the parent increased by ¥1,190,094 million year on year to ¥1,385,958 million.

6

SoftBank Group Corp. Consolidated Financial Report
For the fiscal year ended March 31, 2017b. Results by Segment
The Company’s reportable segments are components of business activities for which decisions on resource allocation andassessment of performance are made. The Company has five reportable segments: “Domestic Telecommunications,”“Sprint,” “Yahoo Japan,” “Distribution,” and “ARM.” The Company has newly established the ARM segment following
the consolidation of ARM on September 5, 2016.

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

Main businesses

Core companies

Reportable segments
Domestic Telecommunications

・Provision of mobile communications services in Japan
SoftBank Corp.
・Sale of mobile devices in Japan
Wireless City Planning Inc.
・Provision of broadband services to retail customers in Japan・Provision of telecom services to corporate customers in Japan, suchas data communications and fixed-line telephone services

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

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

Yahoo Japan Corporation
ASKUL Corporation

Distribution

・Distribution of mobile devices overseas
・Sale of PC software, peripherals, and mobile device accessories inJapan

Brightstar Corp.
SoftBank Commerce & Service
Corp.

ARM

・Design of microprocessor intellectual property and related technol- ARM Holdings plc
ogy・Sale of software tools

Other・Fukuoka SoftBank HAWKS-related businesses

Fukuoka SoftBank HAWKS Corp.

Notes:
1. The calculation methods of segment income and adjusted EBITDA of reportable segments are as follows:
Segment income =(net sales – operating expenses (cost of sales + selling, general and administrative expenses) ± gain (loss) from remeasurement relating to business combination ± other operating income (loss)) in each segment
Adjusted EBITDA =(segment income (loss) + depreciation and amortization ± gain (loss) from remeasurement relating to business combination ± otheradjustments) in each segment
2. “Other operating income (loss)” that was presented as an item to be excluded from segment income for calculation of adjusted
EBITDA of each segment until the three-month period ended June 30, 2016 has been presented as “Other adjustments” since thethree-month period ended September 30, 2016. “Other adjustments” are special items such as acquisition-related costs and impairment loss mainly included in other operating income and loss.

For historical principal operational data of each segment, their calculation methods and definitions of terms, see the “Earnings Results Data Sheet” on the Company’s website at http://www.softbank.jp/en/corp/irinfo/presentations/.

7

SoftBank Group Corp. Consolidated Financial Report
For the fiscal year ended March 31, 2017(a) Domestic Telecommunications Segment

1.

Increase in net sales and income (net sales: +1.6% yoy; segment income: +4.5% yoy)2.

Brisk growth in smartphone and SoftBank Hikari fiber-optic service subscribers

3.

Free cash flow increased 39.7% yoy to ¥561.8 billion
Projecting the same level for the fiscal year ending March 2018, even with CAPEX increase(Millions of yen)

Fiscal year ended March 31
2016
2017
Net sales

ChangeChange %3,144,650

3,193,791

49,141

1.6%

Segment income

688,389

719,572

31,183

4.5%

Depreciation and amortization
Other adjustments

474,948-

489,458-

14,510-3.1%-

1,163,337

1,209,030

45,693

3.9%

402,194

561,816

159,622

39.7%

Adjusted EBITDA
Free cash flow
< Overview >The Company aims to generate a stable free cash flow from the domestic telecommunications business, even as Japan’s
telecommunications market approaches maturity. To achieve this goal, the Company is making efforts to expand thenumber of smartphone subscribers while streamlining its capital investment.
Specifically, the Company is focusing on promoting the Home Bundle Discount Hikari Set, which offers a discounton the communication charges of mobile communications services to customers subscribing to both mobile and broadband services such as SoftBank Hikari, as a means of acquiring and retaining smartphone subscribers. Furthermore, as
the low cost smartphone market expands, the Company is also aggressively promoting expansion of the mobile communications service sub-brand Y!mobile. In other initiatives, the Company is collaborating with Yahoo Japan Corporation, mainly in e-commerce, aiming to encourage these smartphone subscribers to make even greater use of Yahoo!
services.

< Financial Results >(Millions of yen)

Fiscal year ended March 31
2016
2017
Telecom service revenue

2,423,105

18,0580.8%

Mobile communications

1,953,363

1,886,640(66,723)(3.4%)

3

Telecom

1,731,989

1,657,629(74,360)(4.3%)

4

221,374

229,011

7,637

3.4%

177,009274,675

268,954
267,51191,945(7,164)51.9%(2.6%)

739,603770,686

31,0834.2%

3,144,650

3,193,791

49,141

1.6%

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

4

Change %2,405,047

Service3

ChangeTelecom revenue of mobile communications services, etc., under the SoftBank and Y!mobile brands
Device warranty service revenue, content-related revenues, advertising revenues, etc.

8SoftBank Group Corp. Consolidated Financial Report
For the fiscal year ended March 31, 2017

Net sales increased by ¥49,141 million (1.6%) year on year to ¥3,193,791 million. Of this, telecom service revenue
increased by ¥18,058 million (0.8%) to ¥ 2,423,105 million and product and other sales increased by ¥31,083 million(4.2%) to ¥770,686 million.
Telecom service revenue increased due to an increase in broadband revenue of ¥91,945 million (51.9%) which accompanied subscriber growth for the SoftBank Hikari fiber-optic service. On the other hand, mobile communications
revenue decreased by ¥66,723 million (3.4%) year on year to ¥1,886,640 million, mainly due to an increase in the total
amount of discounts (negative impact on revenue) associated with growth in the cumulative number of applications of
the Home Bundle Discount Hikari Set. Decreases in mobile data communications device and PHS subscribers also
caused the revenue decrease.
Product and other sales increased mainly due to an increase in revenue of customer-premises equipment for broadband
services and Y!mobile smartphones.

Segment income increased by ¥31,183 million (4.5%) year on year to ¥719,572 million. This is due to operating
expenses (cost of sales and selling, general and administrative expenses) increasing by a mere ¥17,958 million (0.7 %)year on year for an increase in net sales. The main fluctuations in operating expenses were as follows:
Component

YoY change(Millions of yen; %)Main factors for the change
・Increase in the number of smartphone shipments

Cost of products

10,776
1.8%

Sales commission fees

(65,991) ・Decrease in average cost of sales commission fees for(16.1%)
smartphones
・Revised sales promotions for phones

Telecommunications network
charges

32,450
14.8%

・Increase in fiber-optic connection charges for SoftBank
Hikari

Sales promotion expenses andadvertising expenses

26,787
19.1%

・Focused efforts on expanding sales of SoftBank Hikari
and Y!mobile smartphones
・Enhanced measures for phone customers (SUPER FRIDAY,5 awarded points to long-term users and awarded
additional points to users of Yahoo Japan Corporation ecommerce services)

Depreciation and amortization

14,5103.1%

Adjusted EBITDA increased by ¥45,693 million (3.9%) year on year to ¥1,209,030 million.
Free cash flow increased by ¥159,622 million (39.7%) year on year to ¥561,816 million. This is due to a decline
in expenditure for acquisition of telecommunications equipment and an increase in adjusted EBITDA. The Company
projects free cash flow for the fiscal year ending March 2018 to be around the same level, even with an increase incapital expenditure.

5

A promotion awarding free coupons for fast food to SoftBank smartphone subscribers

9SoftBank Group Corp. Consolidated Financial Report
For the fiscal year ended March 31, 2017

< Operations >Mobile Communications Service
Subscribers (Main Subscribers)(Thousands)

March 31, 2016

March 31, 2017

Change32,03832,400362

Cumulative subscribers

Cumulative subscribers increased from the previous fiscal year-end as smartphones and tablets marked net additions
while feature phones and mobile data communication devices marked net losses. In smartphones, the number of Y!mobile subscribers grew briskly. Mobile data communication devices saw a decline in demand due to the introduction of
Data Flat-rate (20 GB) and Data Flat-rate (30 GB) (collectively known as “Giga Monster”) for smartphones in September 2016.

Home Bundle Discount Hikari Set Applications(Thousands)

March 31, 2016

March 31, 2017

ChangeMobile communications service

2,969

6,030

3,061

Broadband service

1,438

2,904

1,467

Number of Units Sold (Main Subscribers)(Thousands)

Fiscal year ended March 31
2016
2017
New subscriptions

Change

4,928
6,151

(513)

Device upgrades

5,441
5,222

Number of units sold10,662

11,079417

930

The number of units sold for mobile devices of main subscribers increased year on year, mainly due to increases in thenumber of units sold for smartphones. In new subscriptions, the number of units sold for Y!mobile smartphones increased,
while that of mobile data communication devices declined for the reason described above. In device upgrades, both
SoftBank and Y!mobile smartphones saw brisk numbers of units sold.

ARPU (Main Subscribers)(Yen / Month)

2016

Fiscal year ended March 31
2017

ChangeTelecom ARPU
Service ARPU

4,150
540

3,950
550

(200)
10

Total ARPU

4,700

4,500

(200)

Total ARPU declined year on year, mainly due to a dilutive impact of an increase in the compositional ratio of Y!mobile
smartphones, which have a relatively low service charge. Further penetration of the Home Bundle Discount Hikari Set

10SoftBank Group Corp. Consolidated Financial Report
For the fiscal year ended March 31, 2017

to the subscriber base also lowered ARPU by increasing the discount amount on telecom ARPU. These impacts werepartially offset by an increase in the compositional ratio of smartphone subscribers.

Churn Rate (Main Subscribers)
Fiscal year ended March 31
2016
2017
Churn rate
6

Phone churn rate

Change

1.35%

1.24%

0.11 pp improvement

1.16%

0.89%

0.27 pp improvement

The overall churn rate improved year on year, largely due to improvement in phone6 churn rate. This improvement is
attributable to fewer subscribers switching to other operators under the Mobile Number Portability (MNP) system andthe expansion of the Home Bundle Discount Hikari Set. Separately, the mobile data communication device churn rate
deteriorated due to an increase in the number of customers who reached the end of their two-year contracts, and a decline
in demand for such devices due to the introduction of Giga Monster for smartphones.

Broadband Service
Subscribers(Thousands)

March 31, 2016

March 31, 2017

Change

SoftBank Hikari

1,717

3,592

1,875

Yahoo! BB hikari with FLET’S

2,008

1,385

(623)

Yahoo! BB ADSL

1,354

1,168

(186)

Cumulative subscribers

5,079

6,145

1,066

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

6

Smartphones and feature phones within main subscribers; includes voice SIM subscriptions.

11SoftBank Group Corp. Consolidated Financial Report
For the fiscal year ended March 31, 2017(b) Sprint Segment

1.

U.S. dollar-based net sales and income grew(net sales: +3.6% yoy, segment income: 3.4x yoy)2.

Postpaid phone net additions were 930,000 (more than doubled yoy)

3.

Adjusted free cash flow turned positive(Millions of yen)

Fiscal year ended March 31
2016
2017
Net sales

ChangeChange %3,871,647

3,623,375(248,272)(6.4%)

Segment income

61,485

186,423

124,938203.2%

Depreciation and amortization

842,110885,845

43,735

5.2%

Other adjustments

79,668

7,371(72,297)(90.7%)

Adjusted EBITDA

983,263

1,079,639

96,376

9.8%

U.S. dollar-based results (IFRSs)
Net sales(Millions of U.S. dollars)

32,18033,347

1,167

3.6%

506

1,728

1,222

241.5%

7,004

8,150

1,146

16.4%

Other adjustments

662

53

(609)

(92.0%)

Adjusted EBITDA

8,172

9,931

1,759

21.5%

Segment income
Depreciation and amortization

Reference: Disclosed by Sprint

Adjusted free cash flow

(Millions of U.S. dollars)(1,404)

607

2,011

-

< Overview >Sprint continued its effort to return to a growth trajectory by increasing net sales together with promoting large-scalecost reductions. With regard to net sales, Sprint continued its effort to enlarge the number of postpaid phone subscribers,
which are the largest source of revenue and profit, and managed to achieve their annual positive net additions for asecond consecutive year. In cost reductions, Sprint achieved significant reductions mainly in network-related expenses,
by increasing its operational efficiency.
< Financial Results >Results in U.S. dollars
Net sales increased by $1,167 million (3.6%) year on year to $33,347 million with an increase in device revenues
more than offsetting a decrease in telecom service revenue. Telecom service revenue declined despite postpaid net
additions, due to penetration of lower rate plans offered in conjunction with device financing and a decrease in prepaid
subscribers. Device revenue increased due to increases in the number of handsets sold under device financing programs.

Segment income increased by $1,222 million (241.5%) year on year to $1,728 million. This is due to operating
expenses (cost of sales and selling, general and administrative expenses) increasing by a mere ¥382 million (1.2 %) year

12SoftBank Group Corp. Consolidated Financial Report
For the fiscal year ended March 31, 2017

on year for an increase in net sales, and other operating loss(note) improving by $437 million year on year. The main
fluctuations in operating expenses were as follows:
YoY change

Component(Millions of U.S. dollars, %)Main factors for the change

Depreciation and amortization

1,146
16.4%

・Increase in leased devices

Cost of products

1,273
21.6%

・Increase in the number of devices sold under the installment sales program

Others (networks, customer
care and advertising, etc.)(2,037) ・Progress in cost reduction(11.4%)

Adjusted EBITDA increased by $1,759 million (21.5%) year on year to $9,931 million.
Adjusted free cash flow turned to a positive $607 million (disclosed by Sprint). Expenditure for acquisition of
telecommunications equipment declined and adjusted EBITDA increased as described above.
Note: For details of other operating loss, see “10. Other operating loss” under “4. Consolidated Financial Statements and Primary
Notes (6) Notes to Consolidated Financial Statements.”

Results in yen
Stronger yen caused comparatively lower results in yen terms; net sales decreased by ¥248,272 million (6.4%) year on
year to ¥3,623,375 million, segment income increased by ¥124,938 million (203.2%) year on year to ¥186,423 million,
adjusted EBITDA increased by ¥96,376 million (9.8%) year on year to ¥1,079,639 million.

< Operations >Fiscal year
Cumulative Subscribers (Sprint Platform)(Thousands)

March 31, 2016

March 31, 2017

ChangeChange excl.
special factors7(Ref.)Net adds (losses)
April 1, 2015 toMarch 31, 2016

30,951

31,576

625

811

1,245

25,316

26,079

763

930

438

Prepaid

14,397

11,992(2,405)(1,079)(1,309)Wholesale and affiliate

13,458

16,134

2,676

2,149

2,733

Cumulative subscribers

58,80659,702

896

1,881

2,669

Postpaid(incl.) Phone

7

Special factors are detailed below.
Factor 1: The acquisition of a wholesale telecom network provider to Sprint, by Sprint’s affiliate company in May 2016. An affiliate company refers toa local wireless operator that sells and provides Sprint-branded services and products with its own self-operated telecom network while paying Sprint
for brand and spectrum usage. This resulted in an increase of 270,000 in the cumulative number of subscribers on the Sprint platform. Furthermore,certain existing subscribers were reclassified.
Factor 2: Each of Sprint's prepaid brands had an active period for the line of between 60 and 150 days from the date of initial activation or replenishment. On December 31, 2016, Sprint unified the active period for the line as 60 days for all prepaid brands. As a result, 1,234,000 prepaid subscriptions
and 21,000 affiliate subscriptions were cancelled.

13SoftBank Group Corp. Consolidated Financial Report
For the fiscal year ended March 31, 2017

Postpaid phone net additions for the fiscal year more than doubled year on year to 930 thousand. The net additions forthe fiscal year were due to an increase in new acquisitions led by an improved value proposition, including the promotionof unlimited data plans. Prepaid subscribers marked net losses due to intensified competition.

The Fourth Quarter
Net Additions (Losses) (Sprint Platform)(Thousands)

Three months ended March 31
2016
2017

Change

56

(118)

(174)

22

42

20

Prepaid

(264)

180

444

Wholesale and affiliate

655

125

(530)

Total

447

187

(260)

Postpaid(incl.) Phone

Note: Excluding special factors7

In the fourth quarter, overall postpaid subscribers decreased due to a continuing decline in tablets. However, postpaid
phone subscribers continued to mark net additions due to brisk subscriber acquisitions. Prepaid subscribers marked net
additions for the first time in eight quarters.

Churn Rate (Sprint Platform Postpaid)
Three months ended March 31
2016
2017

ChangePostpaid phone churn rate

1.56%

1.58%

0.02 pp deterioration

Postpaid churn rate

1.72%

1.75%

0.03 pp deterioration

Postpaid phone churn rate remained largely unchanged. Network improvements offset the impact of intensified competition following the introduction of unlimited data plans by other operators.

ABPU (Sprint Platform Postpaid Phone)(U.S. dollars / month)Three months ended March 31
2016
2017

Change

ARPU

59.45

54.10

(5.35)

Average equipment billings per user

12.08

14.56

2.48

Postpaid phone ABPU

71.53

68.66

(2.87)

Postpaid phone ABPU was relatively flat year on year, normalizing for a change in the device insurance program startingfrom January 2017, which had a dilutive impact of approximately $2.50.

< Initiatives to Reduce Interest Expenses >During the fiscal year, Sprint introduced initiatives to reduce future interest payments while continuing to diversify its
funding sources. Sprint procured funds at lower interest rates while redeeming bonds with higher interest rates upon

14

SoftBank Group Corp. Consolidated Financial Report
For the fiscal year ended March 31, 2017

maturity. Sprint procured $3.5 billion using part of its spectrum assets in October 2016 and procured a loan of $4 billion
in February 2017. Both of these financing transactions were executed at interest rates approximately half of Sprint’s
current effective interest rate.
Sprint’s liquidity8 as of the fiscal year-end was $10.9 billion, up $5.2 billion from the previous fiscal year-end. A
vendor finance facility of $1.2 billion is also available for the purchase of 2.5 GHz network equipment.

More information about Sprint’s U.S. GAAP-based financial results and business operations can be found on the investor relations section of its website at http://investors.sprint.com/.

(c) Yahoo Japan Segment(Millions of yen)

Net sales

Fiscal year ended March 31
2016
2017
652,031
853,458

Change201,427

Change %30.9%

Segment income

222,787

189,819(32,968)(14.8%)

Depreciation and amortization
Gain on remeasurement relating
to business combination

32,69538,973

6,278

19.2%

(59,441)(19)

59,422-Other adjustments-

10,736

10,736-

Adjusted EBITDA

196,041

239,50943,46822.2%(d) Distribution Segment(Millions of yen)

Fiscal year ended March 31
2016
2017
Net sales
Segment loss

ChangeChange %1,420,416

1,295,374(125,042)(8.8%)(1,284)(10,047)(8,763)-

Depreciation and amortization

10,268

7,237(3,031)(29.5%)

Other adjustments

16,46630,26013,794

83.8%

Adjusted EBITDA

25,45027,450

2,000

7.9%

8
Cash, cash equivalents and short-term investments, and undrawn borrowing capacity under the revolving bank credit facility and securitization ofreceivables, among others

15

SoftBank Group Corp. Consolidated Financial Report
For the fiscal year ended March 31, 2017(e) ARM Segment
In the ARM segment, earnings reflect the results of ARM’s operations since September 6, 2016.
(Millions of yen)

Fiscal year ended December 31
2016
2017

ChangeChange %Net sales-

112,902112,902-

Segment income-

12,91912,919-Depreciation and amortization
Gain from remeasurement relating to business combination-

32,52332,523--(18,168)(18,168)-

Other adjustments-

25,78025,780-Adjusted EBITDA-

53,05453,054-< Overview >ARM was consolidated into the Company on September 5, 2016, and now forms the ARM segment. ARM’s operations
are primarily the licensing of semiconductor intellectual property (IP) including the designs of energy-efficient microprocessors and associated technologies. In addition, ARM sells software tools used to enhance the cost-effectivenessand security of products that utilize chips containing ARM technology. ARM also provides support, maintenance andtraining services. ARM designs technology that is suitable for a wide range of different chips that can be deployed into
markets such as smartphones, digital TVs, smart cards, microcontrollers, automotive electronics, enterprise networking
equipment, and servers. ARM is also investing in creating new revenue streams from adjacent markets, especially in theInternet of Things.
Net sales are comprised of (i) licenses to ARM technology, (ii) royalties arising from the resulting sale of licensees’
products based on ARM technology, and (iii) revenues from the sale of software tools.
< Purchase Price Allocation for the ARM Acquisition >Subsequent to the acquisition of ARM, the consideration was allocated to the following acquired assets and assumed
liabilities based on their fair value on the acquisition date of September 5, 2016 (the “purchase price allocation”). Of
the intangible assets, assets with definite useful lives have been retroactively amortized from the acquisition date. The
purchase price allocation may be revised within one year of the acquisition date.
Fair valueon acquisition date
(September 5, 2016)

Consideration transferred

million GBP

million JPY

24,372

3,367,004

Amortization period

Amortization method(years)Amortization fromacquisition date toMarch 31, 2017
million JPY

Acquired assets and assumed liabilities
Technologies
Customer relationships
Trademarks
Other assets and liabilities (net)
Goodwill
Total

3,892
1,076
43
172
19,18924,372537,680
148,649
5,940
23,8242,650,911
3,367,004

8 - 20138Straight line
Straight line
Straight line

22,301
6,647
431

Note: See “ARM” under “4. Consolidated Financial Statements and Primary Notes (6) Notes to Consolidated Financial Statements
3. Business combinations” for details of the purchase price allocation for ARM.

16

SoftBank Group Corp. Consolidated Financial Report
For the fiscal year ended March 31, 2017

< Financial Results >In the ARM segment, earnings reflect the results of ARM’s operations since September 6, 2016.
Net sales totaled ¥112,902 million.
Segment income was ¥12,919 million. Segment income is obtained by deducting operating expenses (cost of sales
and selling, general and administrative expenses) and adding or deducting gain from remeasurement relating to businesscombination and other operating income and loss from net sales. Operating expenses include ¥29,379 million of amortization expenses recorded since the acquisition date for intangible assets recognized at the purchase price allocation for
the ARM acquisition. The Company also recorded ¥18,168 million of gain from remeasurement relating to businesscombination as a result of re-evaluation at fair value of the equity interest of 1.4% in ARM that the Company alreadyheld on the acquisition date. Costs of ¥25,780 million associated with the Company’s acquisition of ARM were also
recorded as other operating loss.
Adjusted EBITDA was ¥53,054 million.

Reference: Net sales in U.S. dollars
Net sales in this section are presented in U.S.-dollar terms as ARM’s revenue is primarily U.S. dollar-based.
(Millions of U.S. dollars)(Pro forma)
July 1 to
September 30, 2016

Post-acquisition
September 6 to30, 2016

October 1 to
December 31, 2016

January 1 toMarch 31, 2017

Technology licensing

89

38

229

122

Technology royalties

240

82

248

258

Software and services

24

20

31

29

Total net sales

353

140

508

409

Notes:
1. Pro forma data includes the period before the acquisition of control by the Company (September 5, 2016). It is unaudited andprovided for information only.
2. Following the Company’s acquisition of ARM, ARM has changed its accounting policy for the recognition of royalty revenues.
Since the change, ARM accrues royalty revenue in the same quarter the chips are shipped by ARM’s licensees, based on estimates.
Pro forma revenue above is presented for royalty revenue recorded prior to acquisition by the Company based on the accounting
policy after the change.

Net sales for the fourth quarter was $409 million. Technology licensing revenue can fluctuate quarter-to-quarter andlicensing revenue reported in the fourth quarter was within the expected range.

17SoftBank Group Corp. Consolidated Financial Report
For the fiscal year ended March 31, 2017

< Operations >Licensing
Licenses signed
January 1 toMarch 31, 2017

Cumulative number oflicenses signed
March 31, 2017Classic (ARM7, ARM9, ARM11)

2

500

Cortex-A

6290

Cortex-R

078

Cortex-M

15

425

Mali

2

149

Number of processor licenses signed

25

1,442

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

During the fourth quarter, ARM signed 25 processor licenses, reflecting the ongoing demand for ARM’s latest technology. Of the customers signing licenses, 11 were new customers purchasing their very first ARM processor license. Mostof these new customers are developing new products and services for the Internet of Things and this demonstrates how
ARM’s technology is becoming a platform in this new market.
Royalty Units
The following analyses are based on the actual shipments of royalty units (chips incorporating ARM technology) by
ARM licensees for the three-month period ended December 31, 2016 as reported by licensees in royalty reports. ARM’slicensees report their actual shipments of royalty units one quarter in arrears; therefore, the current quarter’s royalty unit
analyses are based on chips shipped in the prior quarter. In contrast, royalty revenues are accrued in the same quarterthe chips are shipped, based on estimates, as noted in “Financial Results.”
This section is prepared solely for reference purposes to facilitate understanding of ARM’s operations and includes
information prior to acquisition by the Company on September 5, 2016.
Based on shipmentsfrom October 1 to December 31
2015
2016
Royalty units as reported by ARM’s licensees

4.1 billion

5.1 billion

Classic (ARM7, ARM9, ARM11)

32%

19%

Cortex-A

18%

22%

Cortex-R

6%

7%

Cortex-M

44%

52%

Breakdown by processor family

ARM’s licensees reported shipments of 5.1 billion ARM-based chips for the three-month period ended December 31,
2016. This is an increase of around 24% over the same period of the previous year.

More information about ARM, its business and its technology can be found on the investor relations section of ARM’s
website at www.arm.com/company/investors.

18

SoftBank Group Corp. Consolidated Financial Report
For the fiscal year ended March 31, 2017(2) Overview of Financial Position(Millions of yen)March 31, 2016

March 31, 2017

ChangeChange %Total assets

20,707,192

24,634,212

3,927,020

19.0%

Total liabilities

17,201,921

20,164,482

2,962,561

17.2%

Total equity

3,505,271

4,469,730

964,459

27.5%

Reference: Exchange rate at the fiscal year-end used for translation
USD / JPY

¥112.68¥112.19(¥0.49)(0.4%)

GBP / JPY

¥161.92¥140.08(¥21.84)(13.5%)(a) Current Assets(Millions of yen)March 31, 2016

March 31, 2017

ChangeCash and cash equivalents

2,569,607

2,183,102(386,505)

Trade and other receivables

1,914,789

2,121,619

206,830

Other financial assets

152,858

794,689

641,831

Inventories

359,464

341,344(18,120)

Other current assets

553,551

283,221(270,330)

Total current assets

5,550,269

5,723,975

173,706

Primary components of the change
Component

Primary changes from the previous fiscal year-end

Cash and cash equivalents

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

Other financial assets

Commercial paper for short-term investment and time deposits at Sprint increased.
Also, time deposits and other financial assets of ARM were recorded in conjunction
with its acquisition.

Other current assets

The Company received an entire refund of ¥293,489 million for withholding income
tax that was recorded at the previous fiscal year-end in relation to dividends within
the group companies.

19SoftBank Group Corp. Consolidated Financial Report
For the fiscal year ended March 31, 2017(b) Non-current Assets(Millions of yen)March 31, 2016

March 31, 2017

Change4,183,507

3,977,254(206,253)

2,055,371

1,926,072(129,299)

1,609,789

4,175,464

2,565,675(incl.) ARM-

2,691,818

2,691,818

Intangible assets

6,439,145

6,946,639

507,494

FCC licenses9

4,060,750

4,100,651

39,901

Technologies-

522,894

522,894

439,800

447,061

7,261(incl.) Sprint

324,269

209,838(114,431)(incl.) ARM-

144,496

144,496

Trademarks

760,703

760,563(140)

Software782,148

722,934(59,214)Game titles

59,844-(59,844)335,900

392,536

56,636

1,588,270

1,670,799

82,529Other financial assets

970,874

1,552,267

581,393

Deferred tax assets

172,864

404,994

232,130

Other non-current assets

192,474

182,820(9,654)

Total non-current assets

15,156,923

18,910,237

3,753,314

Property, plant and equipment(incl.) Sprint
Goodwill

Customer relationships

OthersInvestments accounted for using
the equity method

Primary components of the change
Component

Primary changes from the previous fiscal year-end

Property, plant and equipment

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

Goodwill

Goodwill for ARM on the acquisition date was recognized.

Intangible assets- ARM’s intangible assets (technologies, customer relationships, and trademarks) on
the acquisition date were recognized.
- Game titles decreased to a balance of zero due to the sale of all shares of Supercell.

Other financial assets

The Company made additional investments into existing investees and newly acquired investment securities.

Note: For details of the purchase price allocation for ARM, see “ARM” under “4. Consolidated Financial Statements and Primary
Notes (6) Notes to Consolidated Financial Statements 3. Business combinations.” Purchase price allocation may be revised within
one year from the acquisition date.

9

Licenses issued by the U.S. Federal Communications Commission for use of specified spectrum

20SoftBank Group Corp. Consolidated Financial Report
For the fiscal year ended March 31, 2017(c) Current Liabilities(Millions of yen)March 31, 2016

March 31, 2017

Change2,646,609

2,694,093

47,484

1,051,782

1,139,734

87,952

Short-term borrowings

227,050

505,802

278,752

Current portion of long-term borrowings

313,853433,983

120,130

Current portion of corporate bonds

468,877

119,947(348,930)

Others

42,00280,00238,000676,948536,897(140,051)

Short-term borrowings

148,465-(148,465)

Current portion of long-term borrowings

82,032

307,178

225,146

Current portion of corporate bonds

431,808219,365(212,443)

Others

14,643

10,354(4,289)917,879

1,017,462

99,583

Short-term borrowings

139,893

161,862

21,969Current portion of long-term borrowings

347,340

387,349

40,009Lease obligations

389,109431,522

42,413

Others

41,53736,729(4,808)Trade and other payables

1,621,195

1,607,453(13,742)

Other financial liabilities

6,531

13,701

7,170

Income taxes payables

140,351

256,218

115,867

Provisions

56,12056,362242

Other current liabilities

694,965

599,096(95,869)

Total current liabilities

5,165,771

5,226,923

61,152

Interest-bearing debt
SoftBank Group Corp.

SprintOther

Primary components of the change
Component

Primary changes from the previous fiscal year-end

Interest-bearing debt

SoftBank Group Corp.:
Short-term borrowings increased through financing to enhance cash on hand. Current
portion of long-term borrowings also increased, mainly due to transfers from noncurrent liabilities as the repayment became due within one year. Meanwhile, the current portion of corporate bonds decreased due to redemptions upon maturity.
Sprint:Current portion of long-term borrowings increased due to financing using network
equipment, part of spectrum assets, and leased mobile devices. Meanwhile, the current portion of corporate bonds decreased due to redemptions upon maturity, and thebalance of short-term borrowings was reduced to zero due to repayment.

21

SoftBank Group Corp. Consolidated Financial Report
For the fiscal year ended March 31, 2017(d) Non-current Liabilities(Millions of yen)March 31, 2016

March 31, 2017

Change9,275,822

12,164,277

2,888,455

4,995,621

6,378,194

1,382,573

Long-term borrowings

1,572,011

2,133,705

561,694

Corporate bonds

3,423,609

4,244,488

820,879

1

1

03,297,900

4,024,390

726,490

80,082

1,044,116

964,034

3,188,238

2,954,300(233,938)

29,58025,974(3,606)982,301

1,761,693

779,392

Long-term borrowings
Financial liabilities relating to sale of sharesby variable prepaid forward contract

133,407

199,804

66,397-715,448

715,448

Lease obligations

787,831

787,124(707)

Others61,06359,317(1,746)

Other financial liabilities

95,664287,229

191,565

Defined benefit liabilities

123,759

108,172(15,587)

Provisions

118,876

138,730

19,8542,083,164

1,941,380(141,784)

Other non-current liabilities

338,865

297,771(41,094)

Total non-current liabilities

12,036,150

14,937,559

2,901,409

Interest-bearing debt
SoftBank Group Corp.

OthersSprintLong-term borrowings
Corporate bonds
OthersOthersDeferred tax liabilities

Primary components of the change
Component

Primary changes from the previous fiscal year-end

Interest-bearing debt

SoftBank Group Corp.:
Long-term borrowings increased due to a borrowing of ¥1 trillion made as a part of financing to acquire ARM. Corporate bonds increased, mainly due to issuance of corporate bonds and hybrid bonds totaling ¥971,000 million.
Sprint:Long-term borrowings increased due to a term loan of $4 billion executed in February
2017 and, spectrum financing, as well as securitization of installment sales receivables
and telecommunications service receivables. Corporate bonds decreased due to reclassification to current liabilities of bonds with maturities of less than one year.
Others:Financial liabilities relating to sale of shares by variable prepaid forward contract wererecognized based on a sale of Alibaba shares. (note) Based on the same transaction, derivative liabilities of ¥143,935 million were also recorded in other financial liabilities.

Note: For details about the transaction for sale of Alibaba shares by variable prepaid forward contract, see “(2) Transaction for saleof Alibaba shares by variable prepaid forward contract” under “4. Consolidated Financial Statements and Primary Notes (6) Notes
to Consolidated Financial Statements 7. Interest-bearing debt.”

22

SoftBank Group Corp. Consolidated Financial Report
For the fiscal year ended March 31, 2017(e) Equity(Millions of yen)March 31, 2016

March 31, 2017

Change2,613,613

3,586,352

972,739

891,658

883,378(8,280)3,505,271

4,469,730

964,459

12.6%

14.6%

2.0 ppTotal equity attributable to owners of the parent
Non-controlling interests
Total equity
Ratio of equity attributable to owners of the parent(Millions of yen)March 31, 2016

March 31, 2017

ChangeCommon stock

238,772

238,772-

Capital surplus

261,234

245,706(15,528)

Retained earnings

2,166,623

2,958,355

791,732

Treasury stock(314,752)(67,727)

247,025

Accumulated other comprehensive income

261,736

211,246(50,490)

Available-for-sale financial assets

32,594

11,983(20,611)

Cash flow hedges
Exchange differences on translating foreign
operations(40,088)(44,877)(4,789)269,230

244,140(25,090)

Total equity attributable to owners of the parent

2,613,613

3,586,352

972,739

Primary components of the change
Component

Primary changes from the previous fiscal year-end

Retained earnings

The Company recorded net income attributable to owners of the parent of¥1,426,308 million. However, retirement of 100 million shares of treasury
stock (8.33% of the total number of issued shares before the retirement) in
October 2016 resulted in a deduction of ¥595,195 million in retained earnings.

Treasury stock

The Company retired a part of treasury stock in October 2016, after repurchasing 58.07 million shares for ¥350,826 million during the fiscal year.
This repurchase concluded a buyback program of up to ¥500,000 million resolved by the Board of Directors on February 15, 2016, under which theCompany had repurchased 27.07 million shares for ¥149,173 million during
the previous fiscal year.

23SoftBank Group Corp. Consolidated Financial Report
For the fiscal year ended March 31, 2017(3) Overview of Cash Flows(Millions of yen)

Fiscal year ended March 31
2016
2017

ChangeCash flows from operating activities

940,186

1,500,728

560,542

Cash flows from investing activities(1,651,682)(4,213,597)(2,561,915)

Cash flows from financing activities

43,2702,380,746

2,337,476(a) Cash Flows from Operating Activities
Net cash provided by operating activities increased by ¥560,542 million year on year. This was due to a decrease of¥542,833 million in income taxes paid (net of refund). Withholding taxes (net of refund) related to dividends within thegroup companies was ¥611,199 million in the previous fiscal year. On the contrary, the company received a related
refund of ¥293,489 million in the fiscal year as the remaining balance of total refund of ¥904,688 million for the sametransaction. This resulted in a year-on-year decrease in income taxes paid (net of refund).

(b) Cash Flows from Investing Activities
Primary components of the fiscal year
Component

Primary details

Outlays for purchase of property, plant andequipment and intangible assets¥(923,502) million

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

Payments for acquisition of investments¥(688,916) million

The Company made additional investments in existing investees and newly acquired investment securities.

Proceeds from sales/redemption of investments¥482,128 million

The Company sold Alibaba and GungHo shares.

Payment for acquisition of control over subsidiaries¥(3,254,104) million

The Company acquired ARM.

Proceeds from loss of control over subsidiaries¥723,544 million

This represents the sum of $7.2 billion received in July 2016
(first installment) and October 2016 (second installment) as
part of a total of three installments to be received as the saleprice for the all shares of Supercell on July 29, 2016, minus
the amount of cash and cash equivalents held by Supercell at
the time of sale.

Payments for acquisition of marketable securities for short-term trading¥(503,767) million
Proceeds from sales/redemption of marketablesecurities for short-term trading¥239,730 million

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

Payments into time deposits¥(638,914) million
Proceeds from withdrawal of time deposits¥283,419 million

24SoftBank Group Corp. Consolidated Financial Report
For the fiscal year ended March 31, 2017(c) Cash Flows from Financing Activities
Primary components of the fiscal year
Component
Proceeds from short-term interest-bearing debt
¥360,216 million

Primary details
SoftBank Group Corp. procured funds to enhance its cash on
hand.

Proceeds from long-term interest-bearing debt
¥4,792,530 million
Proceeds from long-term borrowings¥2,715,725 million

Sprint executed a term loan of $4 billion and procured funds using part of its spectrum portfolio and network equipment.
SoftBank Group Corp. made a borrowing of ¥1 trillion to finance a portion of the consideration payable in the acquisitionof ARM. SoftBank Corp. also made a borrowing through securitization of installment sales receivables.

Proceeds from issuance of corporate bonds¥1,006,000 million

SoftBank Group Corp. issued straight corporate bonds and hybrid bonds.

Proceeds from sale and leaseback of newly
acquired equipment¥492,369 million

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

Proceeds from advances received for sale ofshares by variable prepaid forward contract¥578,436 million

The Company received advances for sale after concluding avariable prepaid forward contract for the sale of Alibaba
shares.

Repayment of long-term interest-bearing debt¥(2,283,067) million
Repayment of long-term borrowings¥(920,315) million

SoftBank Corp. repaid borrowings made through securitizationof installment sales receivable. Sprint and SoftBank Group
Corp. also repaid borrowings.

Redemption of corporate bonds¥(862,281) million

SoftBank Group Corp. and Sprint redeemed corporate bonds.

Repayment of lease obligations¥(459,788) million

SoftBank Corp. repaid lease obligations for telecommunications equipment.

Payment for purchase of treasury stock¥(350,857) million(4) Forecasts
The Company withholds forecasts as they are difficult to project due to a numerous uncertainties affecting earnings.

2. Basic Approach to the Selection of Accounting Standards
The Company has adopted International Financial Reporting Standards (“IFRSs”).

25SoftBank Group Corp. Consolidated Financial Report
For the fiscal year ended March 31, 2017

3. Notes to Summary Information(1) Significant Changes in Scope of Consolidation for the Fiscal Year Ended March 31, 2017
(Specified subsidiary (two companies) newly consolidated)
ARM Holdings plc became a wholly-owned subsidiary of the Company on September 5, 2016 and accordingly ARM
PIPD Holdings One, LLC and ARM PIPD Holdings Two, LLC, which are subsidiaries of ARM Holdings plc, became
subsidiaries of the Company.
(Specified subsidiary (one company) excluded from consolidation)
Due to the decrease in the percentage of voting rights resulting from the allocation of new shares to a third party,
SOFTBANK GROUP CAPITAL APAC PTE. LTD. became an equity method associate and no longer qualified as a
subsidiary of the Company. SOFTBANK GROUP CAPITAL APAC PTE. LTD. changed its company name to
Foxconn Ventures Pte. Ltd. on March 3, 2017.
(2) Changes in Accounting Estimates(Impairment of goodwill)
Due to the reallocation of goodwill of Brightstar resulting from the determination of business reorganization in theDistribution segment in March 2017, the recoverable amount of goodwill was less than its carrying amount and,
therefore, impairment loss was recorded. The details are described in “Note 10. Other operating loss Note 5” under“4. Consolidated Financial Statements and Primary Notes (6) Notes to Consolidated Financial Statements.”

26

SoftBank Group Corp. Consolidated Financial Report
For the fiscal year ended March 31, 2017

4. Consolidated Financial Statements and Primary Notes(1) Consolidated Statements of Financial Position(Millions of yen)

As ofMarch 31, 2016

As ofMarch 31, 2017

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

2,569,607
1,914,789
152,858
359,464
553,551
5,550,269

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

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

4,183,507
1,609,789
6,439,145
1,588,270
970,874
172,864
192,474
15,156,923
20,707,192

3,977,254
4,175,464
6,946,639
1,670,799
1,552,267
404,994
182,820
18,910,237
24,634,212

27

SoftBank Group Corp. Consolidated Financial Report
For the fiscal year ended March 31, 2017

(Millions of yen)

As ofMarch 31, 2016

As ofMarch 31, 2017

Liabilities and equity
Current liabilities
Interest-bearing debt
Trade and other payables
Other financial liabilities
Income taxes payables
Provisions
Other current liabilities
Total current liabilities

2,646,609
1,621,195
6,531
140,351
56,120694,965
5,165,771

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

Non-current liabilities
Interest-bearing debt
Other financial liabilities
Defined benefit liabilities
Provisions
Deferred tax liabilities
Other non-current liabilities
Total non-current liabilities

9,275,822
95,664
123,759
118,876
2,083,164
338,865
12,036,150

12,164,277
287,229
108,172
138,730
1,941,380
297,771
14,937,559

Total liabilities

17,201,921

20,164,482

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

238,772
261,234
2,166,623(314,752)
261,736
2,613,613
891,658
3,505,271
20,707,192

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

28

SoftBank Group Corp. Consolidated Financial Report
For the fiscal year ended March 31, 2017(2) Consolidated Statements of Income and Comprehensive Income
Consolidated Statements of Income(Millions of yen)

Fiscal year ended
March 31, 2016*
Continuing operations
Net sales
Cost of sales
Gross profit

Fiscal year ended
March 31, 2017

8,881,777(5,518,104)
3,363,673

8,901,004(5,472,238)
3,428,766(2,374,955)(2,277,251)

Gain from remeasurement relating to business combination
Other operating loss
Operating income
Finance cost
Income on equity method investments
Gain on sales of equity method associates
Derivative gain (loss)
Gain (loss) from financial instruments at FVTPL
Other non-operating income (loss)
Income before income tax
Income taxes
Net income from continuing operations

59,441(139,252)
908,907(440,744)
375,397
12,42812,788114,377(63,992)
919,161(422,677)
496,484

18,187(143,703)
1,025,999(467,311)
321,550
238,103(252,815)(160,419)
7,419
712,526
207,105
919,631

Discontinued operations
Net income from discontinued operations
Net income

61,757558,241554,799
1,474,430

474,172
84,069558,241

1,426,308
48,122
1,474,430

370.0532.44
402.49792.16494.85
1,287.01

355.9032.42
388.32781.25494.391,275.64

Selling, general and administrative expenses

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

Earnings per share attributable to owners of the parent
Basic earnings per share (yen)Continuing operations
Discontinued operations
Total basic earnings per share
Diluted earnings per share (yen)Continuing operations
Discontinued operations
Total diluted earnings per share

Note:* Continuing operations and discontinued operations are revised and presented separately. The details are described in “Note
16. Discontinued operations.”

29

SoftBank Group Corp. Consolidated Financial Report
For the fiscal year ended March 31, 2017

Consolidated Statements of Comprehensive Income(Millions of yen)

Fiscal year ended
March 31, 2016
Net income
Other comprehensive income, net of tax
Items that will not be reclassified to profit or loss
Remeasurements of defined benefit plan
Total items that will not be reclassified to profit
or loss
Items that may be reclassified subsequently to
profit or loss
Available-for-sale financial assets
Cash flow hedges
Exchange differences on translating foreign
operations
Share of other comprehensive income ofassociates
Total items that may be reclassified subsequently to
profit or loss
Total other comprehensive income, net of tax
Total comprehensive income
Total comprehensive income attributable to
Owners of the parent
Non-controlling interests

30

Fiscal year ended
March 31, 2017558,241

1,474,430

342

12,200342

12,200(4,906)(31,992)

5,628(7,454)(289,735)(20,500)

27,642(30,403)(298,991)(52,729)(298,649)
259,592(40,529)
1,433,901

195,864
63,728259,592

1,385,958
47,943
1,433,901

SoftBank Group Corp. Consolidated Financial Report
For the fiscal year ended March 31, 2017(3) Consolidated Statements of Changes in Equity
For the fiscal year ended March 31, 2016
(Millions of yen)
Equity attributable to owners of the parent

As of April 1, 2015
Comprehensive income
Net income
Other comprehensive
incomeTotal comprehensive
incomeTransactions with owners
and other transactions
Cash dividends
Transfer of accumulated
other comprehensive
income to retained
earnings
Purchase and disposal oftreasury stock
Changes from businesscombination
Changes from loss ofcontrolChanges in interests in
subsidiaries
Changes in associates’interests in theirsubsidiaries
Share-based paymenttransactions
Other
Total transactions withowners and othertransactions
As of March 31, 2016

Commonstock
238,772

Capitalsurplus374,845

Retainedearnings
1,740,686

Treasurystock(48,383)--

474,172---

Accumulated
othercomprehensive
incomeNoncontrollinginterests Total equity
1,006,871 3,853,177

540,386

Total
2,846,306--

474,172

84,069558,241--(278,308)(278,308)(20,341)(298,649)-

474,172-(278,308)

195,864

63,728259,592--(47,261)--(47,261)(46,719)(93,980)

-

-

342

-

(342)

-

-

-

-

-

(1,316)(266,369)-(267,685)-(267,685)

-

-

-

-

-

-

54,40954,409

-

-

-

-

-

-

(96,060)(96,060)-(128,912)---(128,912)(94,567)(223,479)-

15,736---

15,736-

15,736-(3,457)---(3,457)

5,943

2,486

-

3,022

-

-

-

3,022

(1,947)

1,075-(113,611)(48,235) (266,369)(342)(428,557)(178,941)(607,498)

238,772

261,234

261,736

2,613,613

891,658

3,505,271

2,166,623(314,752)

31

SoftBank Group Corp. Consolidated Financial Report
For the fiscal year ended March 31, 2017

For the fiscal year ended March 31, 2017
(Millions of yen)
Equity attributable to owners of the parent

As of April 1, 2016
Comprehensive income
Net income
Other comprehensive
incomeTotal comprehensive
incomeTransactions with owners
and other transactions
Cash dividends
Transfer of accumulated
other comprehensive
income to retained
earnings
Purchase and disposal oftreasury stock
Retirement of treasury
stock
Changes from businesscombination
Changes from loss ofcontrolChanges in interests in
subsidiaries
Changes in associates’interests in theirsubsidiaries
Changes in interests inassociates’ capitalsurplus
Share-based paymenttransactions
Other
Total transactions withowners and othertransactions
As of March 31, 2017

Commonstock
238,772

Capitalsurplus261,234

Retainedearnings
2,166,623

Treasurystock(314,752)--

1,426,308---

Accumulated
othercomprehensive
incomeNoncontrollinginterests Total equity
891,658 3,505,271

261,736

Total
2,613,613--

1,426,308

48,122

1,474,430--(40,350)(40,350)(179)(40,529)-

1,426,308-(40,350)

1,385,958

47,943

1,433,901--(48,042)--(48,042)(43,467)(91,509)--

10,140-(10,140)

-

-

-

-

-

(1,479)(348,170)-(349,649)-(349,649)--(595,195)

595,195

-

-

-

-

-

-

-

-

-

-

2,218

2,218

-

-

-

-

-

-

(25,997)(25,997)

-

1,670

-

-

-

1,670

6,189

7,859

-

(4,236)---(4,236)-(4,236)-(15,360)---(15,360)-(15,360)

-

2,398

-

-

-

2,398

8,087

10,485

-

-

-

-

-

-

(3,253)(3,253)-(15,528)(634,576)

247,025(10,140)(413,219)(56,223)(469,442)

238,772

245,706

2,958,355(67,727)

211,246

3,586,352

883,378

4,469,730

32

SoftBank Group Corp. Consolidated Financial Report
For the fiscal year ended March 31, 2017(4) Consolidated Statements of Cash Flows(Millions of yen)

Fiscal year ended
March 31, 2016
Cash flows from operating activities
Net income
Depreciation and amortization
Gain from remeasurement relating to businesscombination
Finance cost
Income on equity method investments
Gain on sales of equity method associates
Derivative (gain) loss
(Gain) loss from financial instruments at FVTPL
Other non-operating loss (income)Gain on sales of discontinued operations
Income taxes
Increase in trade and other receivables
Increase in inventories(Decrease) increase in trade and other payables
Other
SubtotalInterest and dividends received
Interest paid
Income taxes paid
Income taxes refunded
Net cash provided by operating activities
Cash flows from investing activities
Purchase of property, plant and equipment, andintangible assets
Proceeds from sales of property, plant and equipment,
and intangible assets
Payments for acquisition of investments
Proceeds from sales/redemption of investments
Decrease from acquisition of control oversubsidiaries(Decrease) increase from loss of control oversubsidiaries
Payments for acquisition of marketable securities for
short-term trading
Proceeds from sales/redemption of marketablesecurities for short-term trading
Payments into time deposits
Proceeds from withdrawal of time deposits
Other
Net cash used in investing activities
Cash flows from financing activities
Increase in short-term interest-bearing debt, net
Proceeds from long-term interest-bearing debt
Repayment of long-term interest-bearing debt
Payments for purchase of subsidiaries’ interests from
non-controlling interests
Purchase of treasury stock
Cash dividends paid
Cash dividends paid to non-controlling interests
Other
Net cash provided by financing activities
Effect of exchange rate changes on cash and cash
equivalents
Decrease in cash and cash equivalents
Cash and cash equivalents at the beginning of the year
Cash and cash equivalents at the end of the year

33

Fiscal year ended
March 31, 2017558,241
1,401,329

1,474,430
1,472,669(59,441)(18,187)

440,745(375,397)(12,428)(12,788)(114,377)
67,836443,984(50,740)(404,933)(698)
91,656
1,972,989
12,072(461,217)(1,230,087)
646,429
940,186

467,311(321,550)(238,103)
252,815
160,419(9,511)(636,216)(91,028)(275,771)(268,312)
15,871
46,5872,031,424
29,502(519,373)(359,209)
318,384
1,500,728(1,360,960)(923,502)

150,956

34,566(407,754)
58,161(61,670)(688,916)
482,128(3,254,104)(63,070)

723,544(94,349)(503,767)

189,844

239,730(45,748)
40,907(57,999)(1,651,682)(638,914)
283,419
32,219(4,213,597)

128,135
2,129,683(1,604,768)(267,276)

360,216
4,792,530(2,283,067)(18,600)(269,214)(47,219)(47,497)
21,42643,270(20,820)(350,857)(46,273)(42,599)(30,604)
2,380,746(54,382)(689,046)
3,258,653
2,569,607(386,505)
2,569,607
2,183,102

SoftBank Group Corp. Consolidated Financial Report
For the fiscal year ended March 31, 2017(5) Significant Doubt about Going Concern Assumption
There are no applicable items.
(6) Notes to Consolidated Financial Statements
1. Definition of company names and abbreviations used in the notes
Company names and abbreviations used in the notes, except as otherwise stated or interpreted differently in thecontext, are as follows:
Company name / Abbreviation

Definition

SoftBank Group Corp.

SoftBank Group Corp. (stand-alone basis)

The Company

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

ARM Holdings plc

SprintSprint Corporation

Brightstar

Brightstar Global Group Inc.

Alibaba

Alibaba Group Holding Limited

GungHoGungHo Online Entertainment, Inc.

SupercellSupercell Oy

2. Significant accounting policies
The Company has newly adopted the following accounting policy due to the consolidation of ARM from September
2016.
Revenue
ARM segment
In the ARM segment, revenue is generated mainly from sales of licenses to sell ARM’s technology and royalties
arising from the resulting sale of licensees’ ARM’s technology-based products.
License revenue is recognized when the significant risks and rewards of ownership of the products are transferred tothe buyer, the Company retains neither continuing managerial involvement nor effective control over the products
sold, it is probable that the economic benefits associated with the transaction will flow to the Company, and the costs
incurred and the amount of revenue related to the transaction can be measured reliably.
Royalty revenue is earned on sales by the Company’s customers of products containing ARM’s technology. Royalty
revenue is recognized when it is probable that the economic benefits associated with the transaction will flow to theCompany, and the amount of revenue can be reliably measured. Royalties are recognized on an accrual basis in thequarter in which the customers ship products containing ARM’s technology, using an estimate based on sales trends
and product information.

34

SoftBank Group Corp. Consolidated Financial Report
For the fiscal year ended March 31, 2017

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

35SoftBank Group Corp. Consolidated Financial Report
For the fiscal year ended March 31, 2017(3) Summary of ARM(a) Name

ARM Holdings plc(b) Address

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

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

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

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

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

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

47,867A

Total consideration transferred

3,367,004

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

36SoftBank Group Corp. Consolidated Financial Report
For the fiscal year ended March 31, 2017

(6) Fair value of assets and liabilities, and goodwill on the acquisition date(Millions of yen)

Acquisition date
(September 5, 2016)
16,98459,782
119,090
693,432
23,649Cash and cash equivalents
Trade and other receivables
Other current assets
Intangible assets1
Other non-current assets
Total assets

912,937

Current liabilities
Deferred tax liabilities
Other non-current liabilities

61,930127,622
7,292

Total liabilities

196,844

Net assets

B

716,093

Goodwill2

A-B

2,650,911

Consideration transferred is allocated to acquired assets and assumed liabilities based on the fair value on theacquisition date. Moreover, the above amounts, which are fair values based on the best estimate at present, maychange in a year from the acquisition date when additional information related to facts and circumstances thatexisted as of the acquisition date may be obtained.
The amounts of assets and liabilities on the acquisition date have been revised for the three-month period ended
March 31, 2017 as follows: technologies, customer relationships, and trademarks are newly recognized;
intangible assets and deferred tax liabilities have increased by ¥692,269 million and ¥126,714 million; andgoodwill has decreased by ¥563,018 million. The above amount is translated at the exchange rate (GBP =JPY138.15) as of the acquisition date.
In addition, ¥29,379 million of amortization expenses related to intangible assets newly recognized has beenrecorded as “selling, general and administrative expenses” as a result of retrospective amortization from theacquisition date.
Notes:
1. The components of intangible assets are as follows; the estimated useful lives are from 8 to 20 years fortechnologies, 13 years for customer relationships, and 8 years for trademarks.
(Millions of yen)

Acquisition date
(September 5, 2016)
537,680
148,649
5,940
1,163

Technologies
Customer relationships
Trademarks
Other693,432

Total

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

37

SoftBank Group Corp. Consolidated Financial Report
For the fiscal year ended March 31, 2017(7) Payment for acquisition of control over subsidiaries(Millions of yen)

Fiscal year ended
March 31, 2017
(3,319,137)

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

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

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

(8) Sales and net income of the acquiree
The amounts of the acquiree’s sales and net income before elimination of inter-company transactions after theacquisition date, which are recorded in the consolidated statements of income for the fiscal year ended March 31,
2017, are ¥112,902 million and ¥17,272 million, respectively. In addition, amortization expenses related tointangible assets recognized on the acquisition date are included in the aforementioned net income.

38SoftBank Group Corp. Consolidated Financial Report
For the fiscal year ended March 31, 2017

4. Segment information(1) Description of reportable segments
The Company’s reportable segments are components of business activities for which discrete financial
information is available, and such information is regularly reviewed by the Company’s Board of Directors inorder to make decisions about the allocation of resources and assess its performance.
The Company has five reportable segments: the Domestic telecommunications segment, the Sprint segment, theYahoo Japan segment, the Distribution segment, and the ARM segment.
The Domestic Telecommunications segment provides, mainly through SoftBank Corp., mobile communications
services, sale of mobile devices, telecommunication services such as fixed-line telephone and data
communications services for corporate customers, and broadband services for retail customers in Japan.
The Sprint segment provides, through Sprint, mobile communications services, sale and lease of mobile devices,sale of mobile device accessories, and fixed-line telecommunications services in the U.S.
The Yahoo Japan segment provides, mainly through Yahoo Japan Corporation, Internet-based advertisingbusiness, e-commerce business, and membership services.
The Distribution segment provides, through Brightstar, distribution of mobile devices overseas, and through
SoftBank Commerce & Service Corp., sale of mobile device accessories, PC software, and peripherals in Japan.
The ARM segment provides, through ARM, designs of microprocessor intellectual property and related
technology, and the sale of software tools. The ARM segment was newly established from the fiscal year ended
March 31, 2017, by the consolidation of ARM in September 2016. Operating results of ARM after theacquisition date is included in the ARM segment.
Information on business segments which are not included in the reportable segments is classified in “Other.”“Other” includes mainly Fukuoka SoftBank HAWKS-related business.
“Reconciliations” includes an elimination of intersegment transactions and the corporate general expenses
unallocated to each reportable segment. Expenses arising mainly from SoftBank Group Corp. and SB Group US,
Inc., which manages and supervises investment activities in the Internet, communication, and media fields
overseas, are included in the corporate general expenses.
(2) Net sales and income of reportable segments
Income of reportable segments is defined as “Operating income.” Intersegment transaction prices are determined
under the same general business conditions as applied for external customers.
The Company also discloses EBITDA (i.e., segment income and loss after addition of depreciation andamortization) and Adjusted EBITDA (i.e., EBITDA after deduction of gain from remeasurement relating tobusiness combination, addition or deduction of other adjustments (gains are deducted)) by each reportablesegment. “Other adjustments” are special items such as acquisition-related costs and impairment loss mainly
included in other operating income and loss.
Income and loss, which are not attributable to operating income and loss, such as financial cost and income andloss on equity method investments, are not managed by each reportable segment and therefore these income andlosses are excluded from the segment performance.
Discontinued operations are not included. The details are described in “Note 16. Discontinued operations.”

39

SoftBank Group Corp. Consolidated Financial Report
For the fiscal year ended March 31, 2017

For the fiscal year ended March 31, 2016
(Millions of yen)

Reportable segments
Domestic
Telecommunications

Sprint

Yahoo
Japan

Distribution

3,106,855 3,688,498

642,880

1,345,856

-

ARM

Total

Other

Reconciliations

Consolidated

8,784,089

97,688-8,881,777

Net sales
Customers
Intersegment
Total
Segment income (loss)

183,149

9,151

74,560-304,655

21,280(325,935)-

3,144,650 3,871,647

652,0311,420,416-

9,088,744

118,968(325,935)

8,881,777

222,787(1,284)-

971,377(17,310)(45,160)

908,907

222,787(1,284)-

971,377(17,310)(45,160)

908,90737,795688,389

61,485Reconciliation from segment income to adjusted EBITDA
Segment income (loss)
Depreciation andamortization

688,389

61,485474,948

842,110

32,695

10,268-1,360,021

11,8101,636

1,373,467

EBITDA
Gain from remeasurement
relating to businesscombination
Other adjustments

1,163,337

903,595

255,482

8,984-

2,331,398(5,500)(43,524)

2,282,374--(59,441)--(59,441)--(59,441)-

79,668-16,466-

96,134

6,086-

102,220

Adjusted EBITDA

1,163,337

983,263

196,041

25,450-2,368,091

586(43,524)

2,325,153

For the fiscal year ended March 31, 2017
(Millions of yen)

Reportable segments
Domestic
Telecommunications

Sprint

Yahoo
Japan

Distribution

ARM

Total

Other

Reconciliations*

Consolidated

3,156,825 3,459,142

841,581

1,228,051

112,901

8,798,500

102,504-

8,901,004

Net sales
Customers
Intersegment
Total
Segment income (loss)

164,233

11,87767,323

1

280,400

25,804(306,204)-

3,193,791 3,623,375

853,458

1,295,374

112,902

9,078,900

128,308(306,204)

8,901,004

189,819(10,047)

12,9191,098,686(16,573)(56,114)

1,025,999

189,819(10,047)

12,9191,098,686(16,573)(56,114)

1,025,999

36,966
719,572

186,423

Reconciliation from segment income to adjusted EBITDA
Segment income (loss)
Depreciation andamortization

719,572

186,423

489,458

885,845

38,973

7,237

32,523

1,454,036

9,984

1,589

1,465,609

EBITDA
Gain from remeasurement
relating to businesscombination
Other adjustments

1,209,030 1,072,268

228,792(2,810)45,4422,552,722(6,589)(54,525)

2,491,608(19)-(18,168)(18,187)--(18,187)

Adjusted EBITDA

-

-

-

7,371

10,73630,26025,78074,147

8,052

8,847

91,046

1,209,030 1,079,639

239,50927,45053,0542,608,682

1,463(45,678)

2,564,467

Note:* ¥8,847 million of expenses arising from the resignation of Nikesh Arora from his position as a director is included in “Reconciliations” forthe fiscal year ended March 31, 2017. The details are described in “Note 10. Other operating loss.”40

SoftBank Group Corp. Consolidated Financial Report
For the fiscal year ended March 31, 2017

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

As ofMarch 31, 2016
254,569
3,031,553
577,279
105,062
194,456
20,5884,183,507

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

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

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

As ofMarch 31, 2016
Intangible assets with indefinite useful lives
FCC licenses
Trademarks
Intangible assets with finite useful lives
SoftwareTechnologies1
Customer relationships
Favorable lease contracts
Spectrum migration costs
Trademarks
Game titles2
Other
Total

As of
March 31, 2017

4,060,750
706,637

4,100,651
703,031

782,148439,800
119,242
110,472
54,066
59,844
106,186
6,439,145

722,934
522,894
447,061
104,754
103,81457,532
183,968
6,946,639

Notes:
1. Intangible assets recognized due to the consolidation of ARM in September 2016. The details are described in “(6) Fairvalue of assets and liabilities, and goodwill on the acquisition date” under “Note 3. Business combinations.”
2. Decrease resulting from exclusion of Supercell from the scope of consolidation of the Company. The details aredescribed in “Note 16. Discontinued operations” and in “(4) (Decrease) increase from loss of control over subsidiaries”
under “Note 18. Supplemental information to the consolidated statements of cash flows.”

41

SoftBank Group Corp. Consolidated Financial Report
For the fiscal year ended March 31, 2017

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

As ofMarch 31, 2016
Current
Short-term borrowings
Commercial paper
Current portion of long-term borrowings
Current portion of corporate bonds
Current portion of lease obligations
Current portion of installment payables
Total
Non-current
Long-term borrowings
Corporate bonds
Lease obligations
Financial liabilities relating to sale of shares by variable
prepaid forward contract*
Installment payables
Total

As of
March 31, 2017

515,408
42,000743,225
900,685
396,992
48,2992,646,609

667,664
80,0001,128,510
339,462438,284
40,173
2,694,093

1,785,500
6,611,947
815,194

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

715,448

63,1819,275,822

29,76012,164,277

Note:* The details are described in “(2) Transaction for sale of Alibaba shares by variable prepaid forward contract.”(2) Transaction for sale of Alibaba shares by variable prepaid forward contract
On June 10, 2016, West Raptor Holdings, LLC (“WRH LLC”), a wholly-owned subsidiary of the Company,
entered into a variable prepaid forward contract to sell Alibaba shares with a newly formed trust, Mandatory
Exchangeable Trust (the “Trust”), and received proceeds of ¥578,436 million ($5.4 billion) as advances received
for sale.
The Trust, on the other hand, utilized Alibaba shares scheduled to be transferred from WRH LLC at the time ofsettlement under the contract and issued $6.6 billion of Mandatory Exchangeable Trust Securities (“Trust
Securities”) which are mandatorily exchangeable into American depositary shares (“ADSs”) of Alibaba. The
proceeds from sale received by WRH LLC from the Trust is $5.4 billion and this is after the deduction of theamounts from $6.6 billion of the total amount of Trust Securities issuance for the purchase of U.S. Treasury
securities in order to fund distributions on the Trust Securities and for the expenses in order to issue Trust
Securities.
The settlement by Alibaba shares based on the variable prepaid forward contract is conducted concurrently withthe exchange of Trust Securities. At the exchange date, which is expected to be the first scheduled trading day
after June 1, 2019, Trust Securities are exchanged for a certain number of ADSs, determined by reference to the
trading price of the ADSs at that time, and the number of Alibaba shares sold by the variable prepaid forward
contract is determined by this number of ADSs. A cap and a floor are set for the number of shares settled and thevariable prepaid forward contract is classified as a hybrid financial instrument with embedded derivatives ofcollar transaction.
The Company accounts for the variable prepaid forward contract by bifurcating the main contracts and embedded
derivatives. The Company received ¥578,436 million and initially recognized ¥674,023 million as financial

42

SoftBank Group Corp. Consolidated Financial Report
For the fiscal year ended March 31, 2017

liabilities relating to sale of shares by variable prepaid forward contract and ¥95,587 million as derivative assets.
Subsequent to initial recognition, financial liabilities relating to sale of shares by variable prepaid forward
contract are measured at amortized cost and embedded derivatives are measured at fair value. ¥715,448 million isrecognized as financial liabilities relating to sale of shares by variable prepaid forward contract in interest-bearing
debt (non-current liabilities) and ¥143,935 million is recognized as derivative liabilities in other financial
liabilities (non-current liabilities) in the consolidated statements of financial position as of March 31, 2017.
¥232,729 million is recognized as a derivative loss in the consolidated statements of income for the fiscal year
ended March 31, 2017.
WRH LLC has the option (“cash settlement option”) to settle the variable prepaid forward contract by eitherdelivering cash or a combination of cash and Alibaba shares. If WRH LLC elects the cash settlement option, cash
equivalent to the fair value of the number of shares for the settlement, which is determined by the transaction
price of ADSs, will be paid.
Also, WRH LLC has the option (“early settlement option”) to settle the variable prepaid forward contract prior to
the scheduled settlement date. Settlement of the variable prepaid forward contract may be made prior to thescheduled settlement date if WRH LLC elects the early settlement option or under certain circumstances.
Alibaba shares held by WRH LLC are pledged as collateral. The Company continuously applies the equity
method to these shares and they are included in “Investments accounted for using the equity method” in the
consolidated statements of financial position as of March 31, 2017. The carrying amount of Alibaba shares
pledged as collateral by the Company is ¥154,440 million as of March 31, 2017.
Outline of the transaction(3) Components of increase in short-term interest-bearing debt
The components of “Increase in short-term interest-bearing debt, net” in the consolidated statements of cash
flows are as follows:(Millions of yen)

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

43

Fiscal year ended
March 31, 2016
118,135
10,000Fiscal year ended
March 31, 2017322,216
38,000128,135

360,216

SoftBank Group Corp. Consolidated Financial Report
For the fiscal year ended March 31, 2017(4) Components of proceeds from long-term interest-bearing debt
The components of “Proceeds from long-term interest-bearing debt” in the consolidated statements of cash flows
are as follows:(Millions of yen)

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

Fiscal year ended
March 31, 2016
557,072
1,053,258

Fiscal year ended
March 31, 2017
2,715,725
1,006,000

519,353492,369-

578,436

2,129,683

4,792,530

Note:* The amount was received as advances for sale of Alibaba shares by variable prepaid forward contract. The variable
prepaid forward contract is a hybrid financial instrument. Regarding the proceeds of ¥578,436 million, financial
liabilities relating to sale of shares by variable prepaid forward contract and derivatives are accounted for and recorded
separately. The details are described in “(2) Transaction for sale of Alibaba shares by variable prepaid forward
contract.”(5) Components of repayment of long-term interest-bearing debt
The components of “Repayment of long-term interest-bearing debt” in the consolidated statements of cash flows
are as follows:(Millions of yen)

Fiscal year ended
March 31, 2016
(684,397)(203,281)(468,061)(49,029)(200,000)(1,604,768)

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

Fiscal year ended
March 31, 2017
(920,315)(862,281)(459,788)(40,683)(2,283,067)

8. Foreign 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)

USD
GBP

As of
March 31, 2016112.68161.92

As ofMarch 31, 2017112.19140.0844

SoftBank Group Corp. Consolidated Financial Report
For the fiscal year ended March 31, 2017

(2) Average rate for the quarter
For the fiscal year ended March 31, 2016

U.S. dollars

Three-month period
endedJune 30, 2015
121.34Three-month period
ended
September 30, 2015
121.91Three-month period
ended
December 31, 2015
121.07(yen)
Three-month period
ended
March 31, 2016116.95Three-month period
ended
September 30, 2016
102.91Three-month period
ended
December 31, 2016108.72(yen)
Three-month period
ended
March 31, 2017113.76

For the fiscal year ended March 31, 2017

U.S. dollars

Three-month period
endedJune 30, 2016
109.07

9. Equity(1) Treasury stock
The Company conducted the retirement of 100,000 thousand shares of treasury stock on October 31, 2016,
pursuant to the Board of Directors’ resolution passed on October 7, 2016. As a result, retained earnings andtreasury stock have decreased by ¥595,195 million respectively.
(2) Accumulated other comprehensive income
The components of accumulated other comprehensive income are as follows:(Millions of yen)

As ofMarch 31, 2016

As ofMarch 31, 2017

Available-for-sale financial assets

32,594

11,983

Cash flow hedges
Exchange differences on translating
foreign operations(40,088)(44,877)

269,230

244,140

261,736

211,246

Total

45

SoftBank Group Corp. Consolidated Financial Report
For the fiscal year ended March 31, 2017

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

Fiscal year ended
March 31, 2016
Sprint segment
Gain on spectrum license exchange1
Loss on disposal of property, plant andequipment2
Loss on contract termination3
U.S. state tax charge
Legal reserves
Severance costs associated with reduction in
workforce of Sprint
Impairment loss on non-current assets
Other
Yahoo segment
Loss on disaster4
Other
Distribution segment
Impairment loss on goodwill5
Impairment loss on non-current assets
Other
ARM segment
Acquisition-related costs6
Company-wide
Expenses resulting from resignation of director7
Other
Impairment loss on non-current assets8
Other
Total

Fiscal year ended
March 31, 2017-36,385(37,032)(55,727)(23,437)(15,399)(10,600)(4,209)(26,079)(2,277)(19,881)(10,271)(8,201)-(13,006)
2,269(13,633)(2,833)(30,260)--(25,780)-(8,847)(6,086)(139,252)(8,051)(143,703)

Notes:
1. License exchange gain resulting from exchange of certain spectrum with other carriers (non-cash transaction).
The spectrum is recorded as FCC licenses in intangible assets.
2. Loss on disposal that mainly resulting from the write-off of leased devices associated with lease cancellations
prior to the scheduled customer lease terms where customers did not return the devices to Sprint.
3. Loss mainly resulting from termination of wholesale contracts with NTELOS Holdings Corp.
4. In February 2017, a fire incident occurred at a logistics center of ASKUL Corporation, namely ASKUL Logi
PARK Tokyo Metropolitan. The fire inflicted damage on ASKUL Corporation’s non-current assets andinventories resulting in a temporary operation shutdown. The loss from the fire incident consists of ¥10,230
million of damage on non-current assets, ¥2,510 million of destroyed inventories, and ¥266 million of related
costs.
5. Goodwill of Brightstar had been allocated to the entirety of Brightstar (a group of cash-generating units), which
had bundled five cash-generating units (Brightstar’s US & Canada, Latin America, Asia & Oceania, SoftBank
Commerce & Service Corp., and Europe & Africa); however, in March 2017, its goodwill was reallocated toBrightstar, which bundled four cash-generating units except for SoftBank Commerce & Service Corp. due to thedetermination of business reorganization in the Distribution segment. Since the impairment indicators existed, theimpairment test was conducted on goodwill and intangible assets with indefinite useful lives. As a result, therecoverable amount of goodwill was less than its carrying amount and, therefore, ¥30,260 million of impairment
loss on goodwill was recorded. Value in use was used as the recoverable amount and calculated by discounting

46

SoftBank Group Corp. Consolidated Financial Report
For the fiscal year ended March 31, 2017

the management approved estimated future cash flow plan of four cash-generating units by 10.97%-16.17%, theweighted average capital cost before tax.
6. Expenses arising from the business combination of ARM. The details are described in “Note 3. Businesscombinations.”
7. Expenses resulting from the resignation of Nikesh Arora from his position as a director. Resignation expenses
consist of expenses in which payment amounts are defined and expenses in which payment amounts are to be
defined depending on the future share price of SoftBank Group Corp. shares. Expenses based on the share pricewill be settled in two installments, scheduled on June 2017 and March 2018. Payment amount will be determinedbased on the share price of June 2017 and March 2018, respectively. The Company measured the expenses basedon the SoftBank Group Corp. share price as of June 30, 2016, and recorded the entire expense for thethree-month period ended June 30, 2016. The expenses will be remeasured every quarter end based on the stock
price of SoftBank Group Corp. until the determination of payment amount, and the changes will be recognizedthrough profit or loss. The expenses were ¥3,830 million for the fiscal year ended March 31, 2017.
In addition to the above resignation expense, the Company purchased the shares of associate companies fromNikesh Arora for ¥10,744 million, which were previously granted to him in December 2014. Purchase price by
the Company was determined based on negotiation with reference to the recent transaction price.
8. As a result of reviewing the business plan of SoftBank Robotics Corp., the recoverable amount was less than its
carrying amount and, therefore, the related carrying amount was reduced to ¥3,471 million of its value in use.

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

Fiscal year ended
March 31, 2016
Interest expenses(440,744)

Fiscal year ended
March 31, 2017
(467,311)

12. Gain on sales of equity method associates
The Company sold a portion of its Alibaba shares to Alibaba, Gamlight Pte Ltd, a wholly-owned subsidiary of GIC
Private Limited, and Aranda Investments Pte. Ltd., a wholly-owned subsidiary of Temasek Holdings Private Limitedon June 13, 2016, and to Alibaba Partnership* on July 11, 2016. As a result of the transaction, ¥234,418 million wasrecorded as a gain on sales of equity method associates.
The total amount of sale price is ¥359,704 million ($3.4 billion), of which the sale price to Alibaba is ¥212,920
million ($2.0 billion). The sale price is determined by negotiation in reference to the market price.

Note:*Alibaba Partnership is not an associate of Alibaba.

13. Derivative gain (loss)¥232,729 million of derivative loss related to collar transaction included in variable prepaid forward contract wasrecorded. The details are described in “(2) Transaction for sale of Alibaba shares by variable prepaid forward
contract” in “Note 7. Interest-bearing debt.”

47

SoftBank Group Corp. Consolidated Financial Report
For the fiscal year ended March 31, 2017

14. Gain (loss) from financial instruments at FVTPL
Gain or loss arising from financial instruments at FVTPL consists mainly of changes in fair value of preferred stock
investment including embedded derivatives, such as ANI Technologies Pvt. Ltd and Jasper Infotech Private Limitedin India, designated as financial assets at FVTPL.

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

Foreign exchange gain and loss
Impairment loss on securities
Dilution gain from changes in equity interest1
Loss relating to loss of control2
Impairment loss on assets classified as held
for sale3
Provision of allowance for doubtful accounts
Other
Total

Fiscal year ended
March 31, 2016
(41,414)(32,759)
14,903-Fiscal year ended
March 31, 201753,336(6,098)77,540(79,278)-(42,540)(21,253)(60)

16,531(63,992)

4,519
7,419

Notes:
1. Mainly, gain arising from changes in Alibaba’s equity interest held by the Company, due to the exercise of stock
options issued by Alibaba and the allocation of new shares to a third party.
2. The Company, on February 24, 2017, entered into an agreement with Foxconn Technology Group in Taiwan toestablish a joint venture through its wholly-owned subsidiary, SOFTBANK GROUP CAPITAL APAC PTE. LTD.
SOFTBANK GROUP CAPITAL APAC PTE. LTD. accordingly issued new ordinary shares to Foxconn (Far East)
Limited on March 3, 2017, and changed its name to Foxconn Ventures Pte. Ltd. as of the same date. As a result of
the transaction, the percentage of voting rights of Foxconn Ventures Pte. Ltd. held by the Company became 45.5%
and the entity has become an equity method associate and no longer qualified as a subsidiary for the Company fromMarch 3, 2017. Loss relating to loss of control recognized from the transaction is ¥79,278 million. Of this, theamount relating to the loss of control, which is transferred from accumulated other comprehensive income to net
loss, is ¥131,529 million and gain from remeasurement relating to applying equity method is ¥52,251 million.
3. The Company transferred a portion of its GungHo shares to assets classified as held for sale as the Company
tendered in the Tender Offer by GungHo for the three-month period ended June 30, 2016. Accordingly, the carrying
amounts of the shares were decreased to the fair values after deducting expenses (Tender Offer price) arising fromsale and ¥42,540 million was recorded as an impairment loss on assets classified as held for sale. As a result of thetransaction, GungHo is no longer qualified as an equity method associate for the three-month period ended
September 30, 2016.

48

SoftBank Group Corp. Consolidated Financial Report
For the fiscal year ended March 31, 201716. Discontinued operations
Supercell
The Company entered into a definitive agreement with Tencent Holdings Limited and its affiliate (the “Tencent
affiliate”), Supercell and other parties on June 21, 2016 to sell all of its shares of Supercell, to the Tencent affiliate.
The shares were transferred on July 29, 2016, and as of the date of transfer of the shares, Supercell was excluded
from the scope of consolidation of the Company.
Operating results related to Supercell for the fiscal year ended March 31, 2016, and for the fiscal year ended March
31, 2017 are presented as discontinued operations separately from continuing operations in the consolidated
statements of income.

The operating results and cash flows from discontinued operations are as follows:a. Operating results from discontinued operations(Millions of yen)

Revenue
ExpenseIncome before income tax from discontinued
operations
Income taxes
Income after income tax from discontinued operations
Gain on sales of discontinued operations
Income taxes recognized from sales of discontinued
operations
Net income from discontinued operations

Fiscal year ended
March 31, 2016
271,772(185,169)

Fiscal year ended
March 31, 2017
80,735(46,075)

86,603

34,660(17,878)
68,725-(6,414)28,246636,216-(109,663)

68,725554,799

In addition, the above net income from discontinued operations includes amortization expenses, which are
related to intangible assets recognized at the acquisition date, and other.

b. Cash flows from discontinued operations(Millions of yen)

Net cash provided by operating activities
Net cash provided by (used in) investing activities
Net cash used in financing activities
Total

49

Fiscal year ended
March 31, 2016
107,071
17,055(32,578)
91,548

Fiscal year ended
March 31, 2017
44,065(166)(17,557)
26,342

SoftBank Group Corp. Consolidated Financial Report
For the fiscal year ended March 31, 2017

17. Earnings per share(1) Basic earnings per share
Fiscal year ended
March 31, 2016
Net income used in the calculation of basic earnings per share(Millions of yen)
Net income attributable to owners of the parent
Continuing operations
Net income attributable to owners of the parent
Discontinued operations
Total
Weighted-average number of ordinary shares(Thousands of shares)
Basic earnings per share (yen)Continuing operations
Discontinued operations
Total

Fiscal year ended
March 31, 2017435,957

877,90238,215474,172

548,406
1,426,308

1,178,098

1,108,237

370.0532.44
402.49792.16494.85
1,287.01(2) Diluted earnings per share
Fiscal year ended
March 31, 2016
Net income used in the calculation of diluted earnings per share(Millions of yen)
Continuing operations
Net income from continuing operations used in the calculationof basic earnings per share
Effect of dilutive securities issued by subsidiaries and associates
Sub total
Discontinued operations
Net income from discontinued operations used in thecalculation of basic earnings per share
Sub total
Total
Weighted-average number of ordinary shares used in the calculationof diluted earnings per share (Thousands of shares)
Weighted-average number of ordinary shares
Adjustments:
Stock acquisition rights
Total
Diluted earnings per share (yen)Continuing operations
Discontinued operations
Total

50

Fiscal year ended
March 31, 2017435,957(16,475)
419,482

877,902(11,299)
866,60338,21538,215
457,697

548,406
548,406
1,415,009

1,178,098

1,108,237

556
1,178,654

1,018
1,109,255

355.9032.42
388.32781.25494.391,275.64

SoftBank Group Corp. Consolidated Financial Report
For the fiscal year ended March 31, 201718. Supplemental information to the consolidated statements of cash flows
For the fiscal year ended March 31, 2017
(1) Gain on sales of discontinued operations
Gain on sales of subsidiaries arising from sale of Supercell shares. The details are described in “Note 16.
Discontinued operations.”(2) Income taxes paid and income taxes refunded
Payment of withholding income tax related to dividends within the group companies of ¥85,048 million is
included in “Income taxes paid,” and a refund of the withholding income tax of ¥293,489 million is included in“Income taxes refunded,” respectively.
(3) Proceeds from sales and redemption of investments
Proceeds related to sales of Alibaba shares of ¥359,704 million ($3.4 billion) are included. The details aredescribed in “Note 12. Gain on sales of equity method associates.”(4) (Decrease) increase from loss of control over subsidiaries
The relation between consideration received for sale of Supercell shares and “Increase from loss of control oversubsidiaries” and components of assets and liabilities at the date of loss of control over Supercell are as follows:a. The relation between consideration received for sale of Supercell shares and “Increase from loss of control
over subsidiaries”(Millions of yen)

Consideration received for sale
The amount of receivable for sale
Cash and cash equivalents held at the time of loss of control
Changes in foreign exchange from the date of loss of control*

769,844(19,693)(27,143)(884)

Increase from loss of control over subsidiaries

722,124

Note:*Changes in foreign exchange from the date of loss of control to the date of partial proceeds received forsale and the proceeds were not received on the date of loss of control.

b. The components of assets and liabilities at the date of loss of control(Millions of yen)

At the date of loss ofcontrol(July 29, 2016)
The components of assets
Current assets
Game titles
Goodwill
Other non-current assets

125,523
47,63684,487
6,077

The components of liabilities
Deferred revenue (current)
Other current liabilities
Non-current liabilities

96,9195,593
23,77851

SoftBank Group Corp. Consolidated Financial Report
For the fiscal year ended March 31, 201719. Significant subsequent events
Investment in Xiaoju Kuaizhi Inc.
On April 17, 2017, an overseas subsidiary of SoftBank Group Corp. and Xiaoju Kuaizhi Inc. (“Kuaizhi”), theoperator of a taxi allocation service in China, entered into an agreement whereby the overseas subsidiary will make atotal investment of $5.0 billion (approximately ¥550,000 million) in Kuaizhi. Kuaizhi will not be classified as a
subsidiary or an associate of the Company after the investment, continuously.
The impact of this agreement on the operating results as of March 31, 2018 has not been determined at present.

52