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

SoftBank Group Corp.
Consolidated Financial Report
For the nine-month period ended December 31, 2016 (IFRS)Tokyo, February 8, 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)

Net income

Net income
attributable toowners of theparentTotal
comprehensive
incomeAmountAmount%AmountNine-month period ended¥6,581,466 (0.3) ¥949,660 18.0 ¥975,257 15.0 ¥903,934 76.9 ¥857,431
December 31, 2016

99.9

¥951,506 113.6

Net sales
Amount%Nine-month period ended¥6,603,835 December 31, 2015

OperatingincomeIncomebefore incometax

AmountAmount%¥804,692-¥848,105%-

Basic earnings per
share (yen)Diluted earnings per
share (yen)Nine-month period ended
December 31, 2016

¥769.36¥762.04

Nine-month period ended
December 31, 2015

¥362.80¥351.42%%¥511,102 (20.2) ¥428,972 (26.0) ¥445,436 (58.6)

Note:
Net sales, operating income, and income before income tax for the nine-month period ended December 31, 2016 are presented basedon the amounts from continuing operations only. Year-on-year percentage changes in net sales, operating income, and income before
income tax for the nine-month period ended December 31, 2015 are not presented because corresponding amounts for thenine-month period ended December 31, 2015 are revised and presented respectively.
Please refer to page 55 “Note 17. Discontinued operations” in “3. Condensed Interim Consolidated Financial Statements (6) Notes toCondensed Interim 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 (%)

As of December 31, 2016

¥24,867,038¥3,981,711¥3,096,622

12.5

As of March 31, 2016

¥20,707,192¥3,505,271¥2,613,613

12.6

2.

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

Note:
Revision of forecasts on the dividends: No

3. Forecasts on the Consolidated Results of Operations for the Fiscal Year Ending March 2017 (April 1, 2016 – March 31, 2017)
Currently it is difficult to provide forecasts on the results in figures due to a large number of uncertain factors affecting theearnings. The Company will announce its forecasts on the consolidated results of operations when it becomes possible to
make a rational projection.
* Notes(1) Significant changes in scope of consolidation (changes in scope of consolidation of specified subsidiaries): Yes
Newly consolidated: Four companies
West Raptor Holdings, LLC SB HP HoldCo ARM PIPD Holdings One, LLC ARM PIPD Holdings Two, LLC
Please refer to page 26 “(1) Significant Changes in Scope of Consolidation for the Nine-month Period Ended December
31, 2016” in “2. 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” in “2. Notes to Summary Information” for details.
(3) Number of shares issued (common stock)[1] Number of shares issued (including treasury stock):
As of December 31, 2016: 1,100,660,365 shares
As of March 31, 2016:
1,200,660,365 shares[2] Number of treasury stocks:
As of December 31, 2016:
11,568,929 shares
As of March 31, 2016:
53,760,198 shares[3] Number of average stocks during nine-month period (April-December):
As of December 31, 2016: 1,114,476,150 shares
As of December 31, 2015: 1,182,405,746 shares* Implementation status of interim review proceduresThis interim consolidated financial report is not subject to interim review procedures based on the Financial Instruments
and Exchange Act, and the review procedures for the condensed interim consolidated financial statements were being
conducted when this report was disclosed.
* Note to forecasts on the consolidated results of operations and other items
The forecast figures are estimated based on the information that the Company is able to obtain at present and assumptions
which are deemed to be reasonable. However, actual results may be different due to various factors.
On February 8, 2017, the Company will hold an earnings results briefing for the media, institutional investors, andfinancial institutions. This earnings results briefing will be broadcast live on our website in both Japanese and English at
http://www.softbank.jp/en/corp/irinfo/. The Earnings Results Data Sheet will also be posted on our 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 nine-month period ended December 31, 2016

(Appendix)
Contents
1. Qualitative Information Regarding Nine-month Period Results .............................................................................. P. 2
(1) Qualitative Information Regarding Consolidated Results of Operations .......................................................... P. 2
a. Consolidated Results of Operations ................................................................................................................ P. 2
b. Results by Segment ........................................................................................................................................ P. 7(2) Qualitative Information Regarding Consolidated Financial Position ............................................................... P. 19
a. Assets, Liabilities and Equity ........................................................................................................................ P. 19
b. Cash Flows .................................................................................................................................................... P. 24(3) Qualitative Information Regarding Forecasts on Consolidated Results of Operations .................................... P. 25
2. Notes to Summary Information ............................................................................................................................... P. 26(1) Significant Changes in Scope of Consolidation for the Nine-month Period Ended December 31, 2016 .......... P. 26(2) Changes in Accounting Estimates ..................................................................................................................... P. 26
3. Condensed Interim Consolidated Financial Statements ........................................................................................... P. 27(1) Condensed Interim Consolidated Statements of Financial Position .................................................................. P. 27(2) Condensed Interim Consolidated Statements of Income and Comprehensive Income ..................................... P. 29(3) Condensed Interim Consolidated Statements of Changes in Equity ................................................................. P. 33(4) Condensed Interim Consolidated Statements of Cash Flows ............................................................................ P. 35(5) Significant Doubt about Going-concern Assumption ........................................................................................ P. 36(6) Notes to Condensed Interim Consolidated Financial Statements ...................................................................... P. 36
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.
Three-month period ended December 31, 2016
The third quarter
Nine-month period ended December 31, 2016
The period
December 31, 2016
The end of the third quarter
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, the Company established a new reportable segment, “ARM.” See page 39 “ARM” under “3. Condensed Interim Consolidated Financial Statements (6) Notes to Condensed Interim Consolidated Financial Statements 3. Business combinations” for details of the consolidation.

1

SoftBank Group Corp. Consolidated Financial Report
For the nine-month period ended December 31, 2016

1. Qualitative Information Regarding Nine-month Period Results(1) Qualitative Information Regarding Consolidated Results of Operations
a. Consolidated Results of Operations(Millions of yen)

Nine Months Ended December 31
2015
2016

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

6,603,835
804,692
848,105
462,021

6,581,466
949,660
975,257
350,629(22,369)
144,968
127,152(111,392)(0.3%)
18.0%
15.0%(24.1%)

Discontinued operations
Net income from discontinued operations

49,081

553,305504,224-

Net income
Net income attributable to owners of the parent

511,102428,972

903,934
857,431392,832
428,459

76.9%
99.9%

Reference: Average exchange rates used for translation
Fiscal Year Ended March 2016

USD / JPY

Fiscal Year Ending March 2017

Q1

Q2

Q3

Q4

Q1

Q2

Q3

¥121.34¥121.91¥121.07¥116.95¥109.07¥102.91¥108.72< 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 same period of the previous fiscal year has been revised retrospectively and presented
under discontinued operations. See page 56 “(2) Supercell” under “3. Condensed Interim Consolidated Financial Statements (6) Notes to Condensed Interim Consolidated Financial Statements 17. Discontinued operations” for details.
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.

Fiscal Year Ended March 2016
Q1

Earnings for the
Fiscal Year
Ended March
2016

Q2

Q3

Fiscal Year Ending March 2017
Q4

Q1

Q2

Q3

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 Ending March 2017

Discontinued Operations

Supercell earnings are included in net income from discontinued operations

2

SoftBank Group Corp. Consolidated Financial Report
For the nine-month period ended December 31, 2016

An overview of the consolidated results of operations for the period is as follows:(Continuing Operations)(a) Net Sales
Net sales decreased by ¥22,369 million (0.3%) year on year to ¥6,581,466 million. Lower net sales of the Sprint segment
and the Distribution segment outweighed increases in net sales of the Domestic Telecommunications segment and theYahoo Japan segment, as well as the new addition of the ARM segment. The Sprint segment’s sales increased in U.S. dollar
terms, but declined in yen terms due to the impact of foreign exchange rate fluctuations.
(b) Operating Income
Operating income increased by ¥ 144,968 million (18.0%) year on year to ¥ 949,660 million. Segment income increasedby ¥ 53,166 million in the Domestic Telecommunications segment, ¥ 85,698 million in the Sprint segment, and ¥ 20,420
million in the Distribution segment, in addition to the recognition of segment income of ¥30,254 million in the newly
established ARM segment. On the other hand, segment income declined by ¥43,134 million in the Yahoo Japan segment,
reflecting the inclusion in the same period of the previous fiscal year of gain from remeasurement relating to businesscombination of ¥59,441 million for the consolidation of ASKUL Corporation.
(c) Finance Cost
Finance cost increased by ¥13,879 million (4.2 %) year on year to ¥ 343,363 million, mainly due to an increase in interest
expense in SoftBank Group Corp.

(d) Income on Equity Method Investments
Income on equity method investments decreased by ¥ 97,179 million (32.1%) year on year to ¥ 205,988 million. This was
mainly due to a decline of ¥ 93,788 million in income on equity method investments related to Alibaba.
Alibaba’s IFRS-based adjusted net income for the nine-month period ended September 30, 20161 decreased by CNY
6,189 million (12.9%) year on year to CNY 41,913 million (“A” in the table below). This primarily reflected a significant
inflation of net income for the nine-month period ended September 30, 2015 (U.S. GAAP and IFRSs basis) (“B” and “C”
in the table below) due to gain from remeasurement relating to business combination of CNY 18,602 million arising in
relation to Alibaba Health Information Technology Limited in July 2015.
The reconciliations to IFRSs for the nine-month period ended September 30, 2016 (“D” in the table below) mainlyreflects the amount of changes in the fair value of Alibaba’s financial assets at FVTPL (Fair Value Through Profit or Loss)
as income and loss. The reconciliations to IFRSs for the nine-month period ended September 30, 2015 (“E” in the tablebelow) mainly incorporates the reversal of a gain on remeasurement of CNY 24,734 million included in net income on U.S.
GAAP basis, shown as “B” in the table below. The gain had been recognized in association with the 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 nine-month period ended December 31, 2016

(Reference: Net Income of Alibaba and the Company’s Related Income on Equity Method Investments)(Millions of Chinese yuan)

Alibaba
Net income (U.S. GAAP)
Reconciliations to IFRSs
Net income (IFRSs)

B
E
C

Income on equity method investments related to Alibaba(Reference)
Interest ratio as of September 30

Nine Months Ended September 30
2015
2016

Change56,490(8,388)
48,102

20,53821,37541,913(35,952)
29,763(6,189)Nine Months Ended December 31
2015
2016

ChangeDA

32.68%

30.26%-

million CNY

million CNY

million CNY

Income on equity method investments

15,545

13,224(2,321)(Reference)
Effective exchange rate: CNY / JPY¥19.52¥15.85¥(3.67)

million JPY

million JPY

million JPY

303,400

209,612(93,788)

Income on equity method investments(e) Gain on Sales of Equity Method Associates
Gain on sales of equity method associates was ¥238,101 million compared to a gain of ¥3 million in the same period of theprevious fiscal year. This was mainly due to the sale of a portion of Alibaba shares held by subsidiary SB CHINA HOLDINGS PTE LTD2 (“SB China”) to Alibaba, two Singaporean sovereign wealth funds, and Alibaba Partnership3.

(f) Foreign Exchange Gain and Loss
Foreign exchange gain was ¥34,222 million compared to a loss of ¥28,815 million in the same period of the previous fiscal
year. This was mainly due to settlement and translation of foreign currency-denominated borrowings from a foreign subsidiary and foreign currency-denominated deposits.

(g) Derivative Gain and Loss
Derivative loss was ¥95,875 million compared to a gain of ¥ 3,331 million in the same period of the previous fiscal year.
This was mainly attributable to loss on valuation of derivatives of ¥ 72,293 million recorded in relation to a collar transaction included in a variable prepaid forward contract for Alibaba shares. See page 47 “(2) Transaction for sale of Alibaba
shares by variable prepaid forward contract” under “3. Condensed Interim Consolidated Financial Statements (6) Notes toCondensed Interim Consolidated Financial Statements 9. Interest-bearing debt” for details.
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.

2
3

Currently SOFTBANK GROUP CAPITAL APAC PTE. LTD.
Alibaba Partnership is not an affiliate of Alibaba.

4SoftBank Group Corp. Consolidated Financial Report
For the nine-month period ended December 31, 2016(h) Other Non-operating Income and Loss
Other non-operating loss was ¥13,476 million compared to an income of ¥ 95,211 million in the same period of the previous
fiscal year. The primary components for the period were as follows:(Millions of yen)

Dilution gain fromchanges in equity interest

Nine Months Ended December 31
2015
2016
14,65475,060

Impairment loss on assets classified as held for
sale

Gain (loss) from financial instruments at
FVTPL

Details
Private placement of new shares by Alibaba-(42,540)

Loss in relation to the difference between the valuationof the 248,300,000 GungHo shares tendered by theCompany, out of the 272,604,800 shares held, at thetender offer price of ¥294 per share and their carrying
amount on a consolidated basis

108,426(39,281)

Loss recorded as the amount of change in the fair valueof the Company’s investments, primarily in India,
from the previous fiscal year-end to the end of the third
quarter. (Of this, a gain of ¥16,133 million was due toforeign exchange rate fluctuation)

See page 55 “16. Other non-operating income (loss)” under “3. Condensed Interim Consolidated Financial Statements(6) Notes to Condensed Interim Consolidated Financial Statements” for details.

(i) Income before Income Tax
As a result of (b) to (h), income before income tax increased by ¥127,152 million (15.0%) year on year to ¥975,257 million.

(j) Income Taxes
Income taxes increased by ¥238,544 million (61.8%) year on year to ¥624,628 million.
The effective income tax rate for the period was 64.0% compared to the statutory tax rate of 31.69%. This mainly reflected an intragroup transaction involving the transfer of a portion of the Alibaba shares held by SB China, a wholly owned
subsidiary of SoftBank Group Corp., to SoftBank Group Corp. and its wholly owned subsidiary.
As a result of this transaction, deferred tax liabilities of ¥735,829 million were recorded as expenses for the period. On
the other hand, for the Alibaba shares that were transferred to SoftBank Group Corp., no deferred tax assets were recorded
for differences between their carrying amount for tax purposes and their carrying amount on a consolidated basis (accounting perspective) as there are no plans to sell these shares in the near future. As a result, the effective income tax rate in thecondensed interim consolidated statements of income for the period increased.

(k) Net Income from Continuing Operations
As a result of (i) and (j), net income from continuing operations decreased by ¥111,392 million (24.1%) year on year to¥350,629 million.

(Discontinued Operations)(l) Net Income from Discontinued Operations
Net income from discontinued operations was ¥553,305 million, compared to ¥49,081 million in the same period of the5SoftBank Group Corp. Consolidated Financial Report
For the nine-month period ended December 31, 2016previous 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 ¥525,059 million, which was not recordedin the same period of the previous fiscal year.

(m) Net Income
As a result of (k) and (l), net income increased by ¥392,832 million (76.9%) year on year to ¥903,934 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 ¥428,459 million (99.9%) year on year to ¥857,431 million.

(o) Comprehensive Income
Comprehensive income increased by ¥506,070 million year on year to ¥951,506 million. Of this, comprehensive income
attributable to owners of the parent increased by ¥535,744 million year on year to ¥895,709 million.

6

SoftBank Group Corp. Consolidated Financial Report
For the nine-month period ended December 31, 2016b. 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:
Main Businesses

Core Companies

Domestic Telecommunications

・Provision of mobile communications services in Japan・Sale of mobile devices in Japan・Provision of broadband services to retail customers in Japan・Provision of telecom services to corporate customers in Japan, suchas data communications and fixed-line telephone services

SoftBank Corp.
Wireless City Planning Inc.

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

Sprint Corporation

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

Yahoo Japan Corporation
ASKUL Corporation

Distribution

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

Brightstar Corp.
SoftBank Commerce & Service Corp.

ARM・Design of microprocessor intellectual property and related technology
・Sale of software tools

ARM Holdings plc

Segments
Reportable segments

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 from remeasurement relating to business combination ± other operating income (loss)) in each segment
Adjusted EBITDA =(segment income (loss) + depreciation and amortization ± gain 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
the three-month period ended September 30, 2016. “Other adjustments” are special items such as acquisition-related costs andimpairment 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 nine-month period ended December 31, 2016(a) Domestic Telecommunications Segment

1. (b)
Increase in net sales and income (net sales: +2.5% yoy; segment income: +8.9% yoy)2.

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

3.

Free cash flow increased 81.7% yoy
Projecting ¥550 billion for the fiscal year ending March 2017

(Millions of yen)

Net sales

Nine Months Ended December 31
2015
2016

ChangeChange %2,341,990

2,400,670

58,6802.5%

Segment income

598,318

651,484

53,166

8.9%

Depreciation and amortization

331,866

343,205

11,339

3.4%

Other adjustments

-

-

-

-

Adjusted EBITDA

930,184994,689

64,505

6.9%

Free cash flow

239,411434,896

195,485

81.7%< Overview >SoftBank Corp. aims to ensure steady profit growth in the domestic telecom business under conditions of slower growth
expected in the domestic telecom industry, especially in mobile communications services. SoftBank Corp. has concentrated its efforts on acquiring and maintaining “main subscribers,” who are the users of smartphones, feature phones,
tablets, and mobile data communication devices and are all sources of revenue and profit. Particularly, SoftBank Corp.
puts its strongest emphasis on the acquisition and the improvement of the churn rate of smartphone users by focusing
on the promotion of the Home Bundle Discount Hikari Set, which offers a discount on the communication charges ofmobile communications services to customers subscribing to both mobile and broadband services such as SoftBank
Hikari. SoftBank Corp. is also working to develop new peripheral services such as video streaming, electricity provision,and robotics, and to achieve further operational efficiency and cost reductions.

< Financial Results >(Millions of yen)

Nine Months Ended December 31
2015
2016

ChangeChange %1,792,997

1,828,791

35,794

2.0%

Mobile communications

1,463,363

1,434,260(29,103)(2.0%)

4

Telecom

1,300,147

1,261,380(38,767)(3.0%)

5

163,216

172,880

9,664

5.9%

124,336
205,298

194,749
199,782

70,413(5,516)56.6%(2.7%)

548,993571,879

22,8864.2%

2,341,990

2,400,670

58,680

2.5%

Telecom service revenue

Service

Broadband
Fixed-line telecommunications
Product and other sales
Total net sales
45

Telecom 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 nine-month period ended December 31, 2016

The segment’s net sales increased by ¥58,680 million (2.5%) year on year to ¥2,400,670 million. Of this, telecom
service revenue increased by ¥35,794 million (2.0%) to ¥ 1,828,791 million and product and other sales increased by¥22,886 million (4.2%) to ¥571,879 million.
The increase in telecom service revenue was due to an increase of ¥70,413 million (56.6%) in broadband revenue
following subscriber growth for the SoftBank Hikari fiber-optic service. On the other hand, mobile communications
revenue decreased by ¥29,103 million (2.0%) year on year to ¥1,434,260 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 and a decrease in PHS subscribers.
The increase in product and other sales was mainly due to an increase in sales of terminals for broadband services oncustomer premises and Y!mobile smartphones. Gross profit on product sales improved significantly due to an increasein mobile device sales prices and an attendant increase in monthly installment payment amounts.

Operating expenses (cost of sales and selling, general and administrative expenses) increased by ¥5,514 million(0.3%) year on year to ¥1,749,186 million. The main fluctuations were as follows:
Component

YoY Change(Millions of yen; %)Main Factors for the Change

Cost of products(4,474)(1.0%)

・Fewer shipments of mobile data communication devices

Sales commission fees

(48,391)(16.8%)

・Decrease in average cost of sales commission fees for
smartphones
・Revised various sales promotions for phones
・Decline in the number of new subscriptions

Telecommunications network charges

29,15418.2%

・Increase in fiber-optic connection charges for SoftBank
Hikari

Sales promotion expenses
and advertising expenses

13,825
14.5%

・Focused efforts on expanding sales of SoftBank Hikari andY!mobile smartphones
・Strengthened measures for phone customers (“SUPER FRIDAY”6 and awarding points to long-term users)

Depreciation and amortization

11,3393.4%

As a result of the above, segment income increased by ¥53,166 million (8.9%) year on year to ¥651,484 million.
Adjusted EBITDA increased by ¥64,505 million (6.9%) year on year to ¥994,689 million.

Free cash flow increased by ¥195,485 million (81.7%) year on year to ¥434,896 million. In addition to the abovementioned increase in adjusted EBITDA, expenditure for acquisition of telecommunications equipment declined. The
Company projects free cash flow for the fiscal year ending March 2017 to be ¥550,000 million.

6

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

9SoftBank Group Corp. Consolidated Financial Report
For the nine-month period ended December 31, 2016

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

March 31, 2016

December 31, 2016

Change32,03832,230193

Cumulative subscribers

During the period, smartphones and tablets marked net additions while feature phones and mobile data communication
devices marked net losses. In particular, the number of subscribers for Y!mobile smartphones grew briskly. As a result,the cumulative number of subscribers increased during the period.
Mobile data communication devices saw a decline in demand for combined use with smartphones due to the introduction of 20 GB and 30 GB data flat rate (known as Giga Monster) plans in September 2016.

Home Bundle Discount Hikari Set Applications(Thousands)

March 31, 2016

December 31, 2016

ChangeMobile communications service

2,969

5,149

2,180

Broadband service

1,438

2,527

1,089

Number of Units Sold (Main Subscribers)(Thousands)

Nine Months Ended December 31
2015
2016

ChangeNew subscriptions

3,738

3,349

(388)

Device upgrades

3,945

4,494

549

Number of units sold

7,683

7,843

160

The number of units sold for mobile devices of main subscribers for the period increased, mainly due to increases in thenumber of units sold for smartphones. Particularly, increases in the number of units sold for Y!mobile smartphones
accounted for a significant part of the increase. On the other hand, the number of units sold for mobile data communication devices declined.

ARPU (Main Subscribers)(Yen / Month)Three Months Ended December 31
2015
2016

ChangeTelecom ARPU
Service ARPU

4,170
560

3,980
560

(190)
-

Total ARPU

4,720

4,530

(190)

Total ARPU for the third quarter declined, mainly due to an increase in the compositional ratio of Y!mobile smartphones,
which have a relatively low service charge, and an increase in the amount of discounts on telecom ARPU in conjunction

10

SoftBank Group Corp. Consolidated Financial Report
For the nine-month period ended December 31, 2016

with an increase in the cumulative number of applications of the Home Bundle Discount Hikari Set. This was partially
offset by an increase in the compositional ratio of smartphone subscribers.

Churn Rate (Main Subscribers)
Three Months Ended December 31
2015
2016
Main subscriber churn rate
7

Phone churn rate

Change

1.41%

1.25%

0.16 pp improvement

1.21%

0.89%

0.32 pp improvement

An improvement in the churn rate for main subscribers for the third quarter mainly reflected an improvement in thechurn rate for phones associated with less subscribers switching to other operators under the Mobile Number Portability(MNP) system and the expansion of the Home Bundle Discount Hikari Set. These improvements were partially offset
by a deterioration of the churn rate for mobile data communication devices due to an increase in the number of customers
who reached the end of their two-year contracts.

Broadband Service
Subscribers(Thousands)

March 31, 2016

December 31, 2016

Change

SoftBank Hikari

1,717

3,141

1,424

Yahoo! BB hikari with FLET’S

2,008

1,505

(503)

Yahoo! BB ADSL

1,354

1,213

(141)

Cumulative subscribers

5,079

5,860

780

The number of broadband service subscribers increased during the period, led by SoftBank Hikari. Successful promotionof SoftBank Hikari mainly reflected focused efforts to expand sales of the Home Bundle Discount Hikari Set and an
aggressive campaign to encourage users to switch over from other telecom carriers’ fiber-optic services.

7

Smartphones and feature phones within main subscribers. Includes voice SIM subscriptions

11

SoftBank Group Corp. Consolidated Financial Report
For the nine-month period ended December 31, 2016(b) Sprint Segment

1.

U.S. dollar-based net sales and income grew(net sales: +2.9% yoy, segment income increased by 2.8 times yoy)2.

Postpaid net ports positive for the third quarter in a row; strong trend in net additions forpostpaid phones

3.

Progress in cost reductions(Millions of yen)

Nine Months Ended December 31
2015
2016

ChangeChange %2,927,742

2,652,009(275,733)(9.4%)

Segment income

59,488145,186

85,698144.1%

Depreciation and amortization

622,154645,486

23,332

3.8%

Other adjustments

63,169(2,949)(66,118)-

Adjusted EBITDA

744,811787,723

42,912

5.8%

Net sales

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

24,10924,808

699

2.9%

489

1,365

876

179.1%

5,124

6,038

914

17.8%

Other adjustments

520

(38)

(558)

-

Adjusted EBITDA

6,133

7,365

1,232

20.1%

Segment income
Depreciation and amortization

Reference: Disclosed by Sprint
Adjusted free cash flow

(Millions of U.S. dollars)(2,007)

527

2,534

-

< Overview >Sprint aims to return to a growth trajectory by increasing net sales while promoting large-scale cost reductions. With
regard to net sales, Sprint is focusing on increasing the number of postpaid phone subscribers, which are its largest
source of revenue and profit. In cost reductions, Sprint is making solid progress on achieving its target run rate8 reduction of $2 billion or more exiting the fiscal year ending March 2017 and is targeting further cost reductions for the fiscal
year ending March 2018 onward.
< Financial Results >Results in U.S. dollars
Net sales increased by $699 million (2.9%) year on year to $24,808 million with an increase in device revenues
more than offsetting a decrease in telecom service revenue. Device revenue increased due to increases in lease revenue related to leased devices and in the number of mobile devices sold under the installment sales program. Telecom

8

Estimated future figures based on the assumption at the time the plans were made12SoftBank Group Corp. Consolidated Financial Report
For the nine-month period ended December 31, 2016service revenue declined due to customers shifting to lower rate plans offered in conjunction with device financing
programs and a decrease in prepaid subscribers.

Operating expenses (cost of sales and selling, general and administrative expenses) increased by $182 million(0.8%) year on year to $23,139 million. The main fluctuations were as follows:
Component

YoY Change(Millions of U.S. dollars, %)Main Factors for the Change

Depreciation and amortization

914
17.8%

・An increase in leased devices

Cost of products

853
19.8%

・An increase in lease expenses related to leased devices
・An increase in the number of devices sold under the
installment sales program

Others (networks, customer
care and advertising, etc.)(1,585)(11.7%)

・Progress in cost reduction initiatives

Other operating loss was $304 million, an improvement of $359 million year on year. See page 53 “12. Other operating loss” under “3. Condensed Interim Consolidated Financial Statements (6) Notes to Condensed Interim Consolidated Financial Statements” for details.
As a result of the above, segment income increased by $876 million (179.1%) year on year to $1,365 million andadjusted EBITDA increased by $1,232 million (20.1%) year on year to $7,365 million.

Results in yen
The segment’s net sales in yen terms decreased by ¥275,733 million (9.4%) year on year to ¥2,652,009 million due tothe yen’s appreciation. Segment income increased by ¥85,698 million (144.1%) year on year to ¥145,186 million andadjusted EBITDA increased by ¥42,912 million (5.8%) year on year to ¥787,723 million.

13

SoftBank Group Corp. Consolidated Financial Report
For the nine-month period ended December 31, 2016

< Operations >Number of Subscribers (Sprint Platform)(Thousands)

March 31, 2016 December 31, 2016
Postpaid

ChangeChange Excl.
Special Factors9 Special Factors

30,951

31,694

743

(186)

929

25,31626,037

721

(167)

888

Prepaid

14,397

11,812(2,585)(1,326)(1,259)Wholesale and affiliate

13,45816,009

2,551

527

2,024

Cumulative subscribers

58,80659,515

709

(985)

1,694

(incl.) Phone

During the period, postpaid phone net additions were driven by an increase in subscriber acquisitions due to the introduction of attractive rate plans and effective advertising activities, and an improvement in the churn rate driven by
network improvements. On the other hand, prepaid marked net losses due to continued, intensified competition.

ABPU (Sprint Platform Postpaid Phone)(U.S. dollars / month)Three Months Ended December 31
2015
2016

Change

ARPU

60.30

57.12

(3.18)

Average equipment billings per user

10.69

14.65

3.96

Postpaid phone ABPU

70.99

71.77

0.78

Postpaid phone ABPU for the third quarter increased mainly due to an increase in the amount of average equipment
billings per user outweighing a decrease in ARPU. ARPU declined mainly due to an increase in the compositional ratioof customers on lower rate plans offered in conjunction with device financing programs.

9

Special factors are detailed below.
Factor 1:
A series of transactions involving the acquisition of NTELOS Holdings Corp. (“NTELOS”), a then wholesale telecom network provider to Sprint, by
Sprint’s affiliate company Shenandoah Telecommunications Company (“Shentel”) in May 2016 and subsequent acquisition of NTELOS’s spectrum
assets and termination of existing wholesale arrangement with the company, followed by an amendment of the existing affiliate agreement with Shentel. An affiliate company refers to a 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. Upon completion of the transactions, the number of former NTELOS subscribers
are now accounted for under “affiliate” of Sprint, resulting in an increase of 270,000 in the cumulative number of subscribers. Furthermore, the number of Sprint subscribers who previously roamed on the NTELOS network and were accounted for as “postpaid” or “prepaid” are now accounted forunder “affiliate” of Sprint (186,000 from postpaid and 92,000 from prepaid were reclassified as “affiliate”).
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 and21,000 affiliate subscriptions were cancelled.

14SoftBank Group Corp. Consolidated Financial Report
For the nine-month period ended December 31, 2016

Churn Rate (Sprint Platform Postpaid)
Three Months Ended December 31
2015
2016

ChangePostpaid churn rate

1.62%

1.67%

0.05 pp deterioration

Postpaid phone churn rate

1.53%

1.57%

0.04 pp deterioration

The churn rate slightly deteriorated year on year, reflecting the impact of aggressive promotional offers from competitors. Although the postpaid churn rate for phones deteriorated year on year, the impact was absorbed by an increase insubscriber acquisitions that resulted in net subscriber additions.
< Spectrum Financing >In October 2016, Sprint procured funds of $3.5 billion at an interest rate of 3.36%, about half its current effective interest
rate, using its spectrum portfolio. The transaction was executed as part of a program enabling Sprint to procure a maximum of $7.0 billion backed by a small portion (approximately 14% on a MHz-pops10 basis) of its total spectrum holdings.
Based on the improvement in Sprint’s operational performance and liquidity, U.S. credit rating company Moody’s
Investors Service, Inc. upgraded Sprint’s corporate family rating from B3 to B2 in January 2017.

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)

Nine Months Ended December 31
2015
2016

ChangeChange %Net sales

444,724

630,800

186,07641.8%

Segment income

193,678

150,544(43,134)(22.3%)

Depreciation and amortization
Gain on remeasurement relating
to business combination

22,01028,631

6,621

30.1%

(59,441)(19)

59,422-Other adjustments

-

-

-

-

Adjusted EBITDA

156,247

179,156

22,90914.7%(d) Distribution Segment(Millions of yen)

Nine Months Ended December 31
2015
2016
Net sales
Segment income (loss)

10

ChangeChange %1,049,988(1,312)

939,586
19,108(110,402)
20,420(10.5%)-

Depreciation and amortization

8,381

5,337

(3,044)(36.3%)

Other adjustments

13,633-(13,633)-

Adjusted EBITDA

20,702

24,445

3,743

18.1%

The amount of spectrum in a given license or set of frequencies multiplied by the population covered by the geographic area of the spectrum license

15

SoftBank Group Corp. Consolidated Financial Report
For the nine-month period ended December 31, 2016(e) ARM Segment
In the ARM segment, the earnings reflect the results of ARM’s operations since September 6, 2016.
(Millions of yen)

Nine Months Ended December 31
2015
2016

ChangeChange %Net sales-

68,85568,855-

Segment income-

30,25430,254-

Depreciation and amortization

-

2,325

2,325

-

Gain from remeasurement relating to business combination-(18,168)(18,168)-

Other adjustments-

23,696

23,696-

Adjusted EBITDA-

38,107

38,107-

Note: The purchase price allocation for the ARM acquisition has not yet been completed. Accordingly, ARM’s technology IP and otherintangible assets have not been recognized. Once these assets are recognized on completion of purchase price allocation, a regular amortization will be implemented for such assets with definite useful lives, and the amortization cost from the date of acquisition of control
will be retroactively recorded. See page 39 “ARM” under “3. Condensed Interim Consolidated Financial Statements (6) Notes to Condensed Interim Consolidated Financial Statements 3. Business combinations” for details of the consolidation of ARM.

< 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’s 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.
The segment’s net sales are comprised of (i) licenses to ARM’s technology, (ii) royalties arising from the resulting
sale of licensees’ products based on ARM’s technology, and (iii) revenues from the sale of software tools.

< Financial Results >In the ARM segment, earnings reflect the results of ARM’s operation since September 6, 2016.
Net sales totaled ¥68,855 million.
Segment income is obtained by deducting operating expenses (cost of sales and selling, general and administrative
expenses) and adding or deducting the gain from remeasurement relating to business combination and other operating
income (loss) from net sales. The Company recorded ¥18,168 million of gain from remeasurement relating to businesscombination as a result of re-evaluation at fair value of the equity interests of 1.4% in ARM that the Company alreadyheld on the acquisition date on September 5, 2016. Acquisition-related cost of ¥23,696 million was also recorded asother operating loss, associated with the Company’s acquisition of ARM. As a result, segment income totaled ¥30,254
million.
Adjusted EBITDA was ¥38,107 million.

16

SoftBank Group Corp. Consolidated Financial Report
For the nine-month period ended December 31, 2016

Reference: Net sales in U.S. dollars
The 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

Technology royalties

89
240

38
82

229
248

Software and services

24

20

31

Total net sales

353

140

508

Technology licensing

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

U.S. dollar-based net sales of the ARM segment for the third quarter was $508 million. Technology licensing revenue
can fluctuate between quarters and licensing revenue reported in the third quarter was exceptionally high. This was theresult of certain technology license agreements that could have been signed in the prior quarter being delayed until theacquisition by the Company was completed.

< Operations >Licensing
Licenses Signed
October 1 to
December 31, 2016

Cumulative Number ofLicenses Signed
December 31, 2016

Classic

3498

Cortex-A

7282

Cortex-R

378

Cortex-M

22

419

Mali

8

151

Number of processor licenses signed

43

1,428

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

During the third quarter, ARM signed 43 processor licenses, reflecting the ongoing demand for ARM’s latest technology.
Eighteen of the customers signing licenses 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 analysis is based on the actual shipments of royalty units (chips incorporating ARM technology) by ARM
licensees for the three-month period ended September 30, 2016, as reported by licensees in royalty reports. This section

17SoftBank Group Corp. Consolidated Financial Report
For the nine-month period ended December 31, 2016is prepared solely for reference purposes to facilitate understanding of ARM’s business operations. These include information prior to acquisition by the Company on September 5, 2016.
Based on Shipments from July 1 to September 30
2015
2016
Royalty units as reported by ARM’s licensees

4.0 billion

4.9 billion

Classic

32%

23%

Cortex-A

18%

16%

Cortex-R

6%

9%Cortex-M

44%

52%

Breakdown by processor family

ARM’s licensees reported shipments of 4.9 billion ARM-based chips for the three-month period ended September 30,
2016. This is an increase of around 20% 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 nine-month period ended December 31, 2016

(2) Qualitative Information Regarding Consolidated Financial Positiona. Assets, Liabilities and Equity(Millions of yen)March 31, 2016

December 31, 2016

ChangeChange %Total assets

20,707,192

24,867,038

4,159,846

20.1%

Total liabilities

17,201,921

20,885,327

3,683,406

21.4%

Total equity

3,505,271

3,981,711

476,440

13.6%

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

¥112.68¥116.49

¥3.81

3.4%

GBP / JPY

¥161.92¥143.00¥(18.92)(11.7%)(a) Current Assets(Millions of yen)March 31, 2016

December 31, 2016

ChangeCash and cash equivalents

2,569,607

2,498,745(70,862)

Trade and other receivables

1,914,789

2,108,867

194,078

Other financial assets

152,858

453,620

300,762

Inventories

359,464

411,105

51,641Other current assets

553,551

276,729(276,822)

Total current assets

5,550,269

5,749,066

198,797

Primary Components of the Change
Component

Change from Previous Fiscal Year-end

Trade and other receivables

Installment sales receivable increased in line with an increase in the number of devices sold under the installment sales program at Sprint. Also, receivables of ARM
were recorded in conjunction with its consolidation.

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 consolidation.

Other current assets

Withholding income tax of ¥293,489 million recorded at the previous fiscal yearend was refunded. The withholding income tax had been recorded related to dividends within the group companies.

19SoftBank Group Corp. Consolidated Financial Report
For the nine-month period ended December 31, 2016(b) Non-current Assets(Millions of yen)March 31, 2016

December 31, 2016

Change4,183,507

4,086,655(96,852)

2,055,371

2,052,615(2,756)

1,609,789

4,858,998

3,249,209(incl.) ARM-

3,329,300

3,329,300(incl.) Sprint

331,811

343,433

11,622

6,439,145

6,473,924

34,779FCC licenses

4,060,750

4,254,312

193,562

Trademarks

760,703

783,599

22,896

Customer relationships

439,800

343,405(96,395)

Software782,148744,563(37,585)

Game titles

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

348,045

12,145

1,588,270

1,551,177(37,093)

Other financial assets

970,874

1,614,428

643,554

Deferred tax assets

172,864

351,000

178,136

Other non-current assets

192,474

181,790(10,684)

Total non-current assets

15,156,923

19,117,972

3,961,049

Property, plant and equipment(incl.) Sprint
Goodwill

Intangible assets
11

OthersInvestments accounted for using
the equity method

Primary Components of the Change

11

Component

Change from Previous Fiscal Year-end

Goodwill

Since purchase price allocation relating to the acquisition of ARM has not yet been
completed, provisional goodwill of ¥3,213,929 million was recorded as the difference between the acquisition price of ¥3,369,087 million and the net amount of
ARM’s assets and liabilities at the date of acquisition of control. See page 39“ARM” under “3. Condensed Interim Consolidated Financial Statements (6) Notes
to Condensed Interim Consolidated Financial Statements 3. Business combinations” for details of the consolidation of ARM.

Intangible assets

FCC licenses increased, mainly due to the yen’s depreciation against the U.S. dollar from the previous fiscal year-end. Meanwhile, customer relationships decreased, mainly due to regular amortization. Game titles decreased to a balance ofzero 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.

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

20SoftBank Group Corp. Consolidated Financial Report
For the nine-month period ended December 31, 2016(c) Current Liabilities(Millions of yen)March 31, 2016

December 31, 2016

Change2,646,609

3,435,463

788,854

1,051,782

1,517,573

465,791(incl.) Sprint

676,948

968,032

291,084

Short-term borrowings

515,408

824,830

309,422

227,050

506,460

279,410743,225

1,186,163

442,938(incl.) SoftBank Group Corp.

313,853434,389

120,536(incl.) Sprint

82,032

376,043

294,011

Current portion of corporate bonds

900,685855,738(44,947)

Current portion of lease obligations

396,992

431,180

34,188Others90,299137,552

47,253

Trade and other payables

1,621,195

1,689,245

68,050

Other financial liabilities

6,531

21,734

15,203

Income taxes payables

140,351

201,115

60,764

Provisions

56,12059,857

3,737

Other current liabilities

694,965

595,844(99,121)

Total current liabilities

5,165,771

6,003,258

837,487

Interest-bearing debt(incl.) SoftBank Group Corp.

(incl.) SoftBank Group Corp.
Current portion of long-term borrowings

Primary Components of the Change
Component

Change from Previous Fiscal Year-end

Interest-bearing debt

SoftBank Group Corp.:
Short-term borrowings increased by ¥279,410 million through financings to enhance
cash on hand. Current portion of long-term borrowings also increased by ¥120,536 million, mainly due to transfers from non-current liabilities as the repayment became due
within one year.
Sprint:Current portion of long-term borrowings increased by ¥294,011 million due to financing
using leased devices, network equipment and part of its spectrum assets.

21

SoftBank Group Corp. Consolidated Financial Report
For the nine-month period ended December 31, 2016(d) Non-current Liabilities(Millions of yen)March 31, 2016

December 31, 2016

Change9,275,822

11,480,302

2,204,480(incl.) SoftBank Group Corp.

4,995,621

6,177,469

1,181,848(incl.) Sprint

3,297,900

3,554,003

256,103

Long-term borrowings

1,785,500

2,986,659

1,201,159

1,572,011

2,342,487

770,476(incl.) Sprint

80,082

459,331379,249

Corporate bonds

6,611,947

6,906,913

294,966(incl.) SoftBank Group Corp.

3,423,609

3,834,982

411,373(incl.) Sprint

3,188,238

3,071,881(116,357)

Lease obligations
Financial liabilities relating to sale of sharesby variable prepaid forward contract

815,194

819,000

3,806-

739,930

739,930

Installment payables

63,18127,800(35,381)

Other financial liabilities

95,664

111,982

16,318

Defined benefit liabilities

123,759

124,613

854

Provisions

118,876

127,468

8,592

2,083,164

2,725,607

642,443

Other non-current liabilities

338,865

312,097(26,768)

Total non-current liabilities

12,036,150

14,882,069

2,845,919

Interest-bearing debt(incl.) SoftBank Group Corp.

Deferred tax liabilities

Primary Components of the Change
Component

Change from Previous Fiscal Year-end

Interest-bearing debt

SoftBank Group Corp.:
Long-term borrowings increased by ¥770,476 million, partly because of a borrowing of¥1 trillion made to finance a portion of the consideration payable in the acquisition of
ARM. Corporate bonds increased by ¥411,373 million, mainly due to issuance of corporate bonds and hybrid bonds totaling ¥521,000 million.
Sprint:Long-term borrowings increased by ¥379,249 million due to financing using part ofSprint’s spectrum assets, as well as its network equipment and leased devices. Corporate
bonds decreased by ¥116,357 million, mainly due to the transfer to current liabilities ofcorporate bonds that became due for redemption within one year.
Financial liabilities were recognized based on a variable prepaid forward contract relating to the sale of Alibaba shares. Based on the same transaction, derivative assets of¥14,835 million were also recorded in other financial assets (non-current assets) at theend of the third quarter. See page 47 “(2) Transaction for sale of Alibaba shares by
variable prepaid forward contract” under “3. Condensed Interim Consolidated Financial
Statements (6) Notes to Condensed Interim Consolidated Financial Statements 9. Interest-bearing debt” for details.

22SoftBank Group Corp. Consolidated Financial Report
For the nine-month period ended December 31, 2016(e) Equity(Millions of yen)March 31, 2016

December 31, 2016

Change2,613,613

3,096,622

483,009891,658

885,089(6,569)3,505,271

3,981,711

476,440

12.6%

12.5%

(0.1pp)Total equity attributable to owners of the parent
Non-controlling interests
Total equity
Ratio of equity attributable to owners of the parent(Equity Attributable to Owners of the Parent)(Millions of yen)March 31, 2016

December 31, 2016

ChangeCommon stock

238,772

238,772-

Capital surplus

261,234

246,722(14,512)Retained earnings

2,166,623

2,379,973

213,350

Treasury stock(314,752)(68,859)

245,893

Accumulated other comprehensive income

261,736

300,014

38,278Available-for-sale financial assets

32,594

38,591

5,997

Cash flow hedges
Exchange differences on translating foreign
operations(40,088)(44,606)(4,518)269,230

306,029

36,799Total equity attributable to owners of the parent

2,613,613

3,096,622

483,009

Primary Components of the Change
Component

Change from Previous Fiscal Year-end

Retained earnings

The Company recorded net income attributable to owners of the parent of¥857,431 million but also retired 100 million shares of treasury stock (8.33%
of the total number of issued shares before the retirement) in October 2016,
resulting in a decrease in retained earnings by ¥595,195 million.

Treasury stock

On February 15, 2016 the Board of Directors passed a resolution repurchasing
shares of SoftBank Group Corp. up to a maximum total repurchase amount of¥500,000 million. Accordingly, the Company completed the acquisition of
27.07 million shares of treasury stock for ¥149,173 million during the fiscal
year ended March 2016 and 58.07 million shares of treasury stock for ¥350,826
million during the period. After the acquisition was completed, the shares wereretired as detailed above in October 2016.

23

SoftBank Group Corp. Consolidated Financial Report
For the nine-month period ended December 31, 2016b. Cash Flows(Millions of yen)
Nine Months Ended December 31

2015

2016

ChangeCash flows from operating activities

566,846

1,129,516

562,670

Cash flows from investing activities(1,334,845)(3,382,676)(2,047,831)

Cash flows from financing activities

270,227

2,210,330

1,940,103(a) Cash Flows from Operating Activities
Net cash provided by operating activities increased by ¥562,670 million compared with the same period of the previous
fiscal year. The main factor was a year-on-year decrease of ¥536,469 million in income taxes paid (net of refund). The
Company was eligible for a total refund of ¥904,688 million on withholding taxes of ¥904,688 million paid related todividends within the group companies in the same period of the previous fiscal year. Of this, the Company received arefund of ¥611,199 million in the same period of the previous fiscal year and the remaining ¥293,489 million during
the period.

(b) Cash Flows from Investing Activities
Primary Components of the Period
Component

Details

Outlays for purchase of property, plant andequipment and intangible assets¥(671,797) million

SoftBank Corp. and Sprint acquired telecommunications equipment.

Payments for acquisition of investments¥(440,211) million

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

Proceeds from sales/redemption of investments¥464,037 million

The Company sold Alibaba and GungHo shares.

Payment for acquisition of control over subsidiaries¥(3,255,083) million

The Company acquired ARM.

Proceeds from loss of control over subsidiaries¥725,302 million

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

24SoftBank Group Corp. Consolidated Financial Report
For the nine-month period ended December 31, 2016(c) Cash Flows from Financing Activities
Primary Components of the Period
Component
Proceeds from short-term interest-bearing debt
¥355,024 million

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

Proceeds from long-term interest-bearing debt
¥3,585,651 million
Proceeds from long-term borrowings¥2,113,485 million

SoftBank Group Corp. made a borrowing of ¥1 trillion to financea portion of the consideration payable in the acquisition of ARM.
Furthermore, Sprint procured funds using part of its spectrum assets, as well as its network equipment and leased mobile devices.
SoftBank Corp. also made a borrowing through securitization of
installment sales receivables.

Proceeds from issuance of corporate bonds¥521,000 million

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

Proceeds from sale and leaseback of newly
acquired equipment¥372,730 million

SoftBank Corp. conducted a sale and leaseback for a purchase of
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 a variable prepaid forward contract for the sale of Alibaba shares.

Repayment of long-term interest-bearing debt¥(1,245,267) million
Repayment of long-term borrowings¥(519,536) million

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

Redemption of corporate bonds¥(350,081) million

Sprint and SoftBank Group Corp. redeemed corporate bonds.

Repayment of lease obligations¥(338,717) million

SoftBank Corp. repaid lease obligations for telecommunications
equipment and related items.

Payment for purchase of treasury stock¥(350,843) million(3) Qualitative Information Regarding Forecasts on Consolidated Results of Operations
Currently it is difficult to provide forecasts on the results in figures due to a large number of uncertain factors affecting
earnings. The Company will announce its forecasts on the consolidated results of operations when it becomes possible to
make a rational projection.

25

SoftBank Group Corp. Consolidated Financial Report
For the nine-month period ended December 31, 2016

2. Notes to Summary Information(1) Significant Changes in Scope of Consolidation for the Nine-month Period Ended December 31, 2016
(Specified subsidiary (four companies) newly consolidated)
West Raptor Holdings LLC was established on April 27, 2016, SB HP HoldCo was established on July 6, 2016, andbecame subsidiaries of the Company. In addition, ARM Holdings plc became a wholly-owned subsidiary of theCompany on September 5, 2016 and subsequently ARM PIPD Holdings One, LLC and ARM PIPD Holdings Two,
LLC, which are subsidiaries of ARM Holdings plc, became subsidiaries of the Company.

(2) Changes in Accounting Estimates(Assessment of recoverability of deferred tax assets)
The Company assessed the recoverability of unrecognized deferred tax assets and estimated, due to a sale of anequity method associate by the Company, that it was probable that taxable profits will be available against which
net operating loss carryforwards and deductible temporary differences can be utilized in SoftBank Group Corp.
Accordingly, ¥60,451 million of deferred tax assets was recorded. Due to this change in accounting estimate,income tax expenses decreased by ¥60,451 million and net income from continuing operations and net income
increased by ¥60,451 million respectively for the nine-month period ended December 31, 2016.

26

SoftBank Group Corp. Consolidated Financial Report
For the nine-month period ended December 31, 2016

3. Condensed Interim Consolidated Financial Statements(1) Condensed Interim Consolidated Statements of Financial Position(Millions of yen)

As ofMarch 31, 2016

As ofDecember 31, 2016

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

2,498,745
2,108,867
453,620
411,105
276,729
5,749,066

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

4,086,655
4,858,998
6,473,924
1,551,177
1,614,428
351,000
181,790
19,117,972
24,867,038

27

SoftBank Group Corp. Consolidated Financial Report
For the nine-month period ended December 31, 2016

(Millions of yen)

As ofMarch 31, 2016
Liabilities and equity
Current liabilities
Interest-bearing debt
Trade and other payables
Other financial liabilities
Income taxes payables
Provisions
Other current liabilities
Total current liabilities

As ofDecember 31, 2016

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

3,435,463
1,689,245
21,734
201,115
59,857595,844
6,003,258

Total liabilities

9,275,822
95,664
123,759
118,876
2,083,164
338,865
12,036,150
17,201,921

11,480,302
111,982
124,613
127,468
2,725,607
312,097
14,882,069
20,885,327

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
246,722
2,379,973(68,859)
300,014
3,096,622
885,089
3,981,711
24,867,038

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

28

SoftBank Group Corp. Consolidated Financial Report
For the nine-month period ended December 31, 2016

(2) Condensed Interim Consolidated Statements of Income and Comprehensive Income
For the nine-month period ended December 31
Condensed Interim Consolidated Statements of Income(Millions of yen)

Nine-month period ended
December 31, 2015*

Nine-month period ended
December 31, 2016

6,603,835(4,026,139)
2,577,696

6,581,466(3,990,070)
2,591,396(1,732,287)(1,594,371)

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
Foreign exchange gain (loss)
Derivative gain (loss)
Other non-operating income (loss)
Income before income tax
Income taxes
Net income from continuing operations

59,441(100,158)
804,692(329,484)
303,1673(28,815)
3,331
95,211
848,105(386,084)
462,021

18,187(65,552)
949,660(343,363)
205,988
238,101
34,222(95,875)(13,476)975,257(624,628)
350,629

Discontinued operations
Net income from discontinued operations
Net income

49,081
511,102553,305
903,934

428,972
82,130511,102857,43146,503903,934

338.7724.03
362.80278.63490.73769.36327.4124.01
351.42271.62490.42762.04

Continuing operations
Net sales
Cost of sales
Gross profit
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
17. Discontinued operations.”

29

SoftBank Group Corp. Consolidated Financial Report
For the nine-month period ended December 31, 2016

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

Nine-month period ended
December 31, 2015

Nine-month period ended
December 31, 2016

511,102903,934

(6)

-

(6)

-

16,458(33,727)

29,043(4,369)(46,927)

50,524(1,464)(27,626)(65,660)

47,572(65,666)
445,436

47,572
951,506

359,965
85,471
445,436

895,70955,797
951,506

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

SoftBank Group Corp. Consolidated Financial Report
For the nine-month period ended December 31, 2016

For the three-month period ended December 31
Condensed Interim Consolidated Statements of Income(Millions of yen)Three-month period ended Three-month period ended
December 31, 2015*
December 31, 2016
Continuing operations
Net sales
Cost of sales
Gross profit

2,322,637(1,476,191)
846,446

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

Selling, general and administrative expenses
Other operating loss
Operating income
Finance cost
Income on equity method investments
Foreign exchange loss
Derivative gain
Other non-operating income (loss)
Income before income tax
Income taxes
Net income (loss) from continuing operations(608,813)(64,858)
172,775(113,816)
38,581(25,174)
10,217(2,199)80,384(94,441)(14,057)(574,783)(17,233)
295,716(121,341)
100,814(48,849)
74,183
9,109
309,632(201,366)
108,266

Discontinued operations
Net income (loss) from discontinued operations
Net income

16,534
2,477(5,280)102,986

2,289
188
2,477

91,182
11,804
102,986(8.93)
10.88
1.95

88.58
(4.85)
83.73(10.77)
10.88
0.11

85.02
(4.85)
80.17

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
17. Discontinued operations.”

31

SoftBank Group Corp. Consolidated Financial Report
For the nine-month period ended December 31, 2016

Condensed Interim Consolidated Statements of Comprehensive Income(Millions of yen)Three-month period ended
December 31, 2015

Three-month period ended
December 31, 2016

2,477

102,986

2,030(18,618)

22,504318(21,460)

763,291(716)(8,201)(38,764)

777,912(38,764)(36,287)

777,912880,898(38,120)
1,833(36,287)

827,72253,176880,898

Net income
Other comprehensive income, net of tax
Items that may be reclassified subsequently to
profit or loss
Available-for-sale financial assets
Cash flow hedges
Exchange differences on translating foreign
operations
Share of other comprehensive income ofassociates
Total items that may be reclassified subsequently to
profit or loss
Total other comprehensive income, net of tax
Total comprehensive income
Total comprehensive income attributable to
Owners of the parent
Non-controlling interests

32SoftBank Group Corp. Consolidated Financial Report
For the nine-month period ended December 31, 2016

(3) Condensed Interim Consolidated Statements of Changes in Equity
For the nine-month period ended December 31, 2015
(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 December 31, 2015

Commonstock
238,772

Capitalsurplus374,845

Retainedearnings
1,740,686

Treasurystock(48,383)--

428,972---

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

540,386

Total
2,846,306--

428,972

82,130511,102--(69,007)(69,007)

3,341(65,666)-

428,972-(69,007)359,965

85,471

445,436--(47,261)--(47,261)(30,031)(77,292)

-

-

(6)

-

6

-

-

-

-

-

(1,232)(117,343)-(118,575)-(118,575)

-

-

-

-

-

-

53,06753,067

-

-

-

-

-

-

(96,060)(96,060)-(127,251)---(127,251)(94,571)(221,822)-

14,617---

14,617-

14,617-(3,891)---(3,891)

5,518

1,627

-

3,022

-

-

-

3,022

(1,690)1,332-(113,503)(48,499) (117,343)

6(279,339)(163,767)(443,106)

238,772

261,342471,385

2,926,932

928,575

3,855,507

2,121,159(165,726)

33

SoftBank Group Corp. Consolidated Financial Report
For the nine-month period ended December 31, 2016

For the nine-month period ended December 31, 2016
(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
Purchase and disposal oftreasury stock
Retirement of treasury
stock
Changes from businesscombination
Changes from loss ofcontrolChanges in interests in
subsidiaries
Changes in associates’interests in theirsubsidiaries
Changes in interests inassociates’ capitalsurplus
Share-based paymenttransactions
Other
Total transactions withowners and othertransactions
As of December 31, 2016

Commonstock
238,772

Capitalsurplus261,234

Retainedearnings
2,166,623

Treasurystock(314,752)--

857,431---

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

261,736

Total
2,613,613--

857,43146,503903,934--

38,27838,2789,294

47,572-

857,431-

38,278895,70955,797

951,506--(48,042)--(48,042)(43,416)(91,458)

-

-

(844)

(349,302)-(350,146)-(350,146)--(595,195)

595,195

-

-

-

-

-

-

-

-

-

-

2,218

2,218

-

-

-

-

-

-

(25,565)(25,565)

-

(170)

-

-

-

(170)

3,019

2,849

-

(475)

-

-

-

(475)

-

(475)

-

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

-

1,728

-

-

-

1,728

2,284

4,012

-

-

-

-

-

-

(906)

(906)

-

(14,512)(644,081)

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

238,772

246,722

2,379,973(68,859)

300,014

3,096,622

885,089

3,981,711

34

SoftBank Group Corp. Consolidated Financial Report
For the nine-month period ended December 31, 2016

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

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
Foreign exchange (gain) loss and other non-operating(income) loss
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 refund
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
Increase (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
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 period
Cash and cash equivalents at the end of the period

35

Nine-month period ended
December 31, 2015

Nine-month period ended
December 31, 2016

511,102
1,016,496

903,934
1,040,685(59,441)(18,187)

329,485(303,167)(3)(3,331)

343,363(205,988)(238,101)
95,875(66,009)(22,837)

403,573(30,175)(291,449)(5,829)(19,159)
1,482,093
8,086(348,612)(1,216,709)
641,988566,846(636,216)
742,199(223,664)(292,832)
40,194670
1,529,095
16,738(378,065)(354,655)
316,403
1,129,516(1,092,761)(671,797)

146,603

15,538(352,932)
19,550(440,211)
464,037

28,834(3,255,083)(63,070)

725,302(71,308)(250,902)

145,486

119,063(95,247)(1,334,845)(88,623)(3,382,676)

46,231
1,826,661(1,172,999)

355,024
3,585,651(1,245,267)(253,860)(18,150)(120,037)(47,021)(29,350)
20,602
270,227(350,843)(46,098)(41,934)(28,053)
2,210,330

9,030(28,032)(488,742)
3,258,653
2,769,911(70,862)2,569,607
2,498,745

SoftBank Group Corp. Consolidated Financial Report
For the nine-month period ended December 31, 2016(5) Significant Doubt about Going-concern Assumption
For the nine-month period ended December 31, 2016
There are no applicable items.
(6) Notes to Condensed Interim 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, revenues are generated mainly from sales of licenses to ARM’s technology and royalties
arising from the resulting sale of licensees’ ARM’s technology-based products.
License revenue are 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 revenues are earned on sales by the Company’s customers of products containing ARM’s technology.
Royalty revenues are recognized when it is probable that the economic benefits associated with the transaction willflow to the Company, and the amount of revenue can be reliably measured. Royalties are recognized on an accrualbasis in the quarter in which the customers ship products containing ARM’s technology, using an estimate based onsales trends and product information.

36

SoftBank Group Corp. Consolidated Financial Report
For the nine-month period ended December 31, 2016

3. Business combinations
For the nine-month period ended December 31, 2015
ASKUL Corporation(1) Overview of consolidation
ASKUL Corporation, the Company’s associate which primarily conducts mail order services for office supplies,
became the Company’s subsidiary on August 27, 2015 as a result of ASKUL Corporation’s acquisition of its
own treasury stock as resolved by its Board of Directors on May 19, 2015. As a result of ASKUL Corporation’s
acquisition of its own treasury stock, the ownership ratio of ASKUL Corporation’s voting rights held by theCompany rose from 41.7% (as of May 20, 2015) to 44.4% (as of August 27, 2015). The Company did not yethold the majority of the voting rights of ASKUL Corporation; however, considering the dispersion of voting
rights in ASKUL Corporation and the voting patterns exercised in ASKUL Corporation’s past shareholders’meetings, etc., the Company judged that it has substantial control of ASKUL Corporation and has converted it toa consolidated subsidiary.

(2) Summary of acquiree
NameBusiness description

ASKUL Corporation
Mail-order business for stationery, other products and services(3) Acquisition dateAugust 27, 2015

(4) Consideration transferred and the components(Millions of yen)

Acquisition date(August 27, 2015)
Fair value of equity interest in ASKUL Corporation
already held at the time of the acquisition
Total consideration transferred

93,611
A

93,611

As a result of the reevaluation of equity interest already held at the time of the acquisition of control by theCompany in ASKUL Corporation at fair value on the acquisition date, the Company recognized a gain on theacquisition of ¥59,441 million. This gain is presented as “Gain from remeasurement relating to businesscombination” in the condensed interim consolidated statements of income.

37

SoftBank Group Corp. Consolidated Financial Report
For the nine-month period ended December 31, 2016

(5) Fair values of assets and liabilities, non-controlling interests and goodwill on the acquisition date(Millions of yen)

Acquisition date(August 27, 2015)
45,36544,75132,315
69,1248,394

Trade and other receivables
Other current assets
Tangible assets
Intangible assets
Other non-current assets
Total assets

199,949

Current liabilities
Non-current liabilities

71,49534,586

Total liabilities

106,081

Net assets

B

93,868Non-controlling interests1

C

54,036

A-(B-C)53,7792

Goodwill

Notes:
1. Non-controlling interests
Non-controlling interests in an acquiree that are present ownership interests and entitle their holders to a proportionate
share of the entity’s net assets in the event of liquidation are measured based on the proportionate interests at theacquisition date in the identifiable net assets of the acquiree at the acquisition date.
2. Goodwill
Goodwill reflects excess earning power expected from the future business development and the synergy between the
Company and the acquiree.

(6) Proceeds from acquisition of control over subsidiaries(Millions of yen)

Acquisition date(August 27, 2015)
Cash and cash equivalents held by the acquiree at the time ofacquisition of control
Proceeds in cash from the acquisition of control overthe subsidiary

31,291
31,291(7) Sales and net income of the acquiree
The amounts of the acquiree’s sales and net income before elimination of inter-company transactions after theacquisition date, which are recorded in the condensed interim consolidated statements of income for thenine-month period ended December 31, 2015, are ¥104,699 million and ¥1,003 million, respectively.
In addition, the above net income includes amortization expenses, which are related to intangible assets
recognized at the acquisition date, and other.

38

SoftBank Group Corp. Consolidated Financial Report
For the nine-month period ended December 31, 2016

For the nine-month period ended December 31, 2016
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.

39SoftBank Group Corp. Consolidated Financial Report
For the nine-month period ended December 31, 2016(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)
3,321,220

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

3,369,087

Acquisition-related costs of ¥23,696 million arising from the business combination are recognized in “Other
operating loss.”
As a result of the reevaluation of 1.4% equity interest already held by the Company at the time of the acquisitionof control in ARM at fair value, the Company recognized a gain of ¥18,168 million through the step acquisition.
This gain is presented as “Gain from remeasurement relating to business combination” in the condensed interim
consolidated statements of income.

40

SoftBank Group Corp. Consolidated Financial Report
For the nine-month period ended December 31, 2016

(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
31,878Cash and cash equivalents
Trade and other receivables
Other current assets
Non-current assets
Total assets

227,734

Current liabilities
Non-current liabilities

65,149
7,427

Total liabilities

72,576

Net assets

B

155,158

Goodwill*

A-B

3,213,929

Consideration transferred is allocated to acquired assets and assumed liabilities based on the fair value on theacquisition date; however, certain intangible assets related to technology IP and other are under identification andmeasurement, and therefore, not allocated to intangible assets at present. The above amounts will be revised after
identification and measurement are completed. Moreover, the above amounts, which are provisional fair values
based on the best estimate at present, may change in a year from the acquisition date when additional information
related to facts and circumstances that existed as of the acquisition date may be obtained.
The above amount is translated at the exchange rate (GBP = JPY138.15) as of the acquisition date.
Note:* Goodwill reflects excess earning power expected from the future business development, congregative human resource
related to research and development, and the synergy between the Company and the acquiree.

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

Nine-month period ended
December 31, 2016
(3,321,220)

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

52,897
16,984(3,251,339)

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 condensed interim consolidated statements of income for thenine-month period ended December 31, 2016, are ¥68,855 million and ¥28,140 million, respectively. In addition,amortization expenses related to intangible assets, whose allocation of consideration transferred has not been
completed, are not recognized.

41

SoftBank Group Corp. Consolidated Financial Report
For the nine-month period ended December 31, 2016

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 in orderto 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, though ARM, designs of microprocessor intellectual property and related
technology, and the sale of software tools. The ARM segment was newly established from the three-month
period ended September 30, 2016, by the consolidation of ARM in September 2016. Operating results of ARM
after the acquisition 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 manage and supervise 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 17. Discontinued operations.”

42

SoftBank Group Corp. Consolidated Financial Report
For the nine-month period ended December 31, 2016

For the nine-month period ended December 31, 2015
(Millions of yen)

Reportable segments
Domestic
Telecommunications

Sprint

Yahoo
Japan

Distribution

2,315,819 2,783,054

438,337

994,506

-

ARM

Total

Other

Reconciliations

Consolidated

6,531,716

72,119-6,603,835

Net sales
Customers
Intersegment
Total
Segment income (loss)

144,688

6,387

55,482-

232,728

13,648(246,376)-

2,341,990 2,927,742

444,724

1,049,988-

6,764,444

85,767(246,376)

6,603,835

193,678(1,312)-

850,172(11,404)(34,076)804,692

193,678(1,312)-

850,172(11,404)(34,076)804,692

26,171
598,318

59,488Reconciliation from segment income to adjusted EBITDA
Segment income (loss)
Depreciation andamortization

598,318

59,488331,866

622,154

22,0108,381-

984,411

8,614

1,249

994,274

EBITDA
Gain from remeasurement
relating to businesscombination
Other adjustments

930,184

681,642

215,688

7,069-

1,834,583(2,790)(32,827)

1,798,966--(59,441)--(59,441)--(59,441)-

63,169-13,633-76,802

6,086-

82,888Adjusted EBITDA

930,184

744,811

156,247

20,702-

1,851,944

3,296(32,827)

1,822,413

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

Reportable segments
Domestic
Telecommunications

Sprint

Yahoo
Japan

Distribution

ARM

Total

Other

Reconciliations*

Consolidated

2,375,500 2,548,215

622,039

890,168

68,854

6,504,776

76,690-6,581,466

Net sales
Customers
Intersegment
Total
Segment income

103,794

8,761

49,4181

187,144

16,958(204,102)-

2,400,670 2,652,009

630,800

939,586

68,855

6,691,920

93,648(204,102)

6,581,466

150,544

19,10830,254

996,576(8,036)(38,880)

949,660

150,544

19,10830,254

996,576(8,036)(38,880)

949,660

25,170651,484

145,186

Reconciliation from segment income to adjusted EBITDA
Segment income
Depreciation andamortization

651,484

145,186

343,205

645,486

28,631

5,337

2,325

1,024,984

7,452

1,189

1,033,625

EBITDA
Gain from remeasurement
relating to businesscombination
Other adjustments

994,689

790,672

179,175

24,44532,5792,021,560(584)(37,691)

1,983,285

-

-

(19)

-

(18,168)(18,187)--(18,187)-(2,949)--23,696

20,747-

8,283

29,030Adjusted EBITDA

994,689

787,723

179,156

24,445

38,1072,024,120(584)(29,408)

1,994,128

Note:* ¥8,283 million of expenses arising from the resignation of Nikesh Arora from his role as a director is included in “Reconciliations” for thenine-month period ended December 31, 2016. The details are described in “Note 12. Other operating loss.”43SoftBank Group Corp. Consolidated Financial Report
For the nine-month period ended December 31, 2016

For the three-month period ended December 31, 2015
(Millions of yen)

Reportable segments
Domestic
Telecommunications

Sprint

Yahoo
Japan

Distribution

Customers

822,347

915,526

193,627

365,919

Intersegment

11,57566,0382,329

17,341

Total

833,922

981,564

195,956

Segment income (loss)

172,358(21,897)

Reconciliations

Consolidated

25,218-2,322,637

4,449(101,732)-

2,394,702

29,667(101,732)

2,322,637-

187,795(2,646)(12,374)

172,775

Total

Other

-

2,297,419-

97,283

383,260-

42,783(5,449)ARM

Net sales

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

172,358(21,897)

42,783(5,449)-187,795(2,646)(12,374)

172,775

113,157

223,975

9,077

2,590

-

348,799

2,385

385

351,569

EBITDA

524,344285,515

202,078

51,860(2,859)-536,594(261)(11,989)

Other adjustments-

33,955-

13,633-47,588--47,588Adjusted EBITDA

285,515

236,033

51,86010,774-584,182(261)(11,989)

571,932

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

Reportable segments
Domestic
Telecommunications

Sprint

Yahoo
Japan

Distribution

ARM

Total

Other

Reconciliations

Consolidated

835,111882,906

218,386

294,938

54,4982,285,839

23,793-2,309,632

Net sales
Customers
Intersegment

10,993

46,566

2,917

18,292

1

78,7695,722(84,491)-

Total

846,104

929,472

221,303313,230

54,4992,364,608

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

Segment income

185,551

40,621

51,173

4,803

28,796

310,944(5,247)(9,981)

295,716

Reconciliation from segment income to adjusted EBITDA
Segment income
Depreciation andamortization

185,551

40,621

51,173

4,803

28,796

310,944(5,247)(9,981)

295,716

117,800

225,435

9,477

1,780

1,761

356,253

2,674

386

359,313

EBITDA

655,029

303,351

266,056

60,6506,583

30,557667,197(2,573)(9,595)

Other adjustments

-

4,743

-

-

314

5,057

-

176

5,233

Adjusted EBITDA

303,351

270,799

60,6506,583

30,871

672,254(2,573)(9,419)660,26244

SoftBank Group Corp. Consolidated Financial Report
For the nine-month period ended December 31, 2016

5. Handset sale-leaseback
In November 2015, Sprint entered into agreements (Handset Sale-Leaseback) to sell and leaseback certain leased
devices, with Mobile Leasing Solutions, LLC (MLS) and conducted the first Handset Sale-Leaseback transaction(Tranche 1 transaction).
MLS was established for the leasing business by SBLS HD US, Inc. (SBLS), a wholly-owned subsidiary of
SoftBank Group Corp. and JPLS HD US, Inc. (JPLS), a company formed by Japanese leasing companies. It is
contractually agreed that significant management policy and operating decision of MLS require the unanimous
consent of its board of directors designated by SBLS and JPLS. Accordingly, the Company accounts for MLS underthe equity method as a joint venture.
Under this transaction, Sprint sold the devices and transferred the associated certain specified customer lease end
rights and obligations to MLS in exchange for proceeds, and a portion of the proceeds will be settled at the end of theagreement as a deferred purchase price receivable. Simultaneously with the sale of the devices and transfer of certain
specified customer lease end rights and obligations, MLS leased back each device to Sprint pursuant to the Master
Lease Agreement in exchange for monthly rental payments to be made by Sprint to MLS. In addition, Brightstar has
a contractual agreement with MLS to provide reverse logistics and remarketing services to MLS with respect to thedevices that are returned to MLS. The terms and conditions of the transaction are negotiated and determined basedon the market price and the content of transaction.
Sprint derecognized the devices from property, plant and equipment when they were sold to MLS under the Tranche
1 transaction; however, in December 2016, it terminated Tranche 1 transaction by repurchasing the devices andrelated customer lease end rights and obligations from MLS. As a result, Sprint recognized the devices, inventories
and other again totaling $477 million (¥55,548 million) and $16 million (¥1,826 million) respectively. The impact on
the condensed interim consolidated statements of income from the termination is immaterial.

Outline of the transaction*

Note:* This chart only refers to major transactions and the relationship between the Company and major parties to provide an
outline of the transaction.

45

SoftBank Group Corp. Consolidated Financial Report
For the nine-month period ended December 31, 2016

6. Other current assets
The components of other current assets are as follows:(Millions of yen)

As ofMarch 31, 2016
171,991
332,339
49,221
553,551

Prepaid expenses
Tax receivable*
Other
Total

As of
December 31, 2016
139,304
97,52439,901
276,729

Note:* Tax receivable includes withholding income tax of ¥293,489 million related to dividends within the group companies as ofMarch 31, 2016.

7. 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
December 31, 2016
273,065
2,784,833
684,632
105,663
205,61232,8504,086,655

8. 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
Software
Customer relationships
Favorable lease contracts
Spectrum migration costs
Trademarks
Game titles*
Other
Total

As of
December 31, 2016

4,060,750
706,637

4,254,312
729,207782,148439,800
119,242
110,472
54,066
59,844
106,186
6,439,145

744,563
343,405
112,169
105,478
54,392
130,398
6,473,924

Note:* Decrease resulting from exclusion of Supercell from the scope of consolidation of the Company. The details aredescribed in “(2) Supercell” in “Note 17. Discontinued operations” and “(7) (Decrease) increase from loss of control
over subsidiaries” in “Note 18. Supplemental information to the condensed interim consolidated statements of cash
flows.”

46

SoftBank Group Corp. Consolidated Financial Report
For the nine-month period ended December 31, 2016

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

As ofMarch 31, 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
December 31, 2016

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

824,830
97,0001,186,163
855,738
431,180
40,552
3,435,463

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

2,986,659
6,906,913
819,000-

739,930

63,1819,275,822

27,800
11,480,302

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 the 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

47

SoftBank Group Corp. Consolidated Financial Report
For the nine-month period ended December 31, 2016

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. ¥739,930 million isrecognized as financial liabilities relating to sale of shares by variable prepaid forward contract in interest-bearing
debt (non-current liabilities) and ¥14,835 million is recognized as derivative assets in other financial assets(non-current assets) in the condensed interim consolidated statements of financial position as of December 31,
2016. ¥72,293 million is recognized as a derivative loss in the condensed interim consolidated statements ofincome for the nine-month period ended December 31, 2016. Please refer to “Note 15. Derivative gain (loss).”
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, which are equivalent to 3.4% of total voting rights of
Alibaba. The Company continuously applies the equity method to these shares and they are included in“Investments accounted for using the equity method” in the condensed interim consolidated statements offinancial position as of December 31, 2016. The carrying amount of Alibaba shares pledged as collateral by theCompany is ¥145,037 million as of December 31, 2016.
Outline of the transaction
subsidiary
wholly owned subsidiaryWest Raptor Holdings, LLC
Approximately $5.4billion
for advances received
for the sale of Alibaba sharesby variable prepaid forward contract

third party to
SoftBank

Alibaba shares pledged as collateralby variable prepaid forward contract

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

Nine-month period ended Nine-month period ended
December 31, 2015
December 31, 2016
46,231300,02455,00046,231
355,024

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

48

SoftBank Group Corp. Consolidated Financial Report
For the nine-month period ended December 31, 2016

(4) Components of proceeds from long-term interest-bearing debt
The components of “Proceeds from long-term interest-bearing debt” in the condensed interim consolidated
statements of cash flows are as follows:(Millions of yen)

Proceeds from long-term borrowings
Proceeds from issuance of corporate bonds1,6
Proceeds from sale and leaseback of newly acquired
equipment
Proceeds from advances received for sale of shares by
variable prepaid forward contract11
Total

Nine-month period ended Nine-month period ended
December 31, 2015
December 31, 2016
368,156
2,113,485
1,053,258
521,000
405,247

372,730-

578,436

1,826,661

3,585,651

Notes:
1. Corporate bonds issued for the nine-month period ended December 31, 2015 are as follows:

Date of issuanceTotal amountof issuanceInterest
rate

Date of maturity

47th Unsecured Straight
Corporate Bond

June 18, 2015

¥100,000 million

1.36%

June 18, 2020

USD-denominated Senior Notes
due 2022

July 28, 2015

$1,000 million¥124,120 million2

5.38%
2.98%3

July 30, 2022

USD-denominated Senior Notes
due 2025

July 28, 2015

$1,000 million¥124,120 million2

6.00%
3.44%3

July 30, 2025

Euro-denominated Senior Notes
due 2022

July 28, 2015

€500 million¥67,722 million2

4.00%
3.73%3

July 30, 2022

Euro-denominated Senior Notes
due 2025

July 28, 2015

€1,250 million¥169,306 million2

4.75%
4.25%3

July 30, 2025

Euro-denominated Senior Notes
due 2027

July 28, 2015

€500 million¥67,722 million2

5.25%
4.72%3

July 30, 2027

48th Unsecured Straight
Corporate Bond

Dec.10, 2015

¥370,000 million

2.13%

Dec. 9, 2022

Dec.15, 2015$250 million¥30,268 million

6.23%5

Dec.15, 2017

Company name / Name of bonds
SoftBank Group Corp.

Sprint Communications, Inc.4
Export Development Canada
Facility (Tranche 4)

Notes:
2. Stated amounts are cash outflows at the time of redemption, which are fixed by the currency swap contracts designatedas cash flow hedges.
3. Interest rates are after considering the effect of exchange from fixed interest rates denominated in foreign currencies to
fixed interest rates in Japanese yen by the currency swap contracts designated as cash flow hedges.
4. Sprint Communications, Inc. is a subsidiary of Sprint.
5. The corporate bond has a floating interest rate and the interest rate stated above is as of December 31, 2016.

49

SoftBank Group Corp. Consolidated Financial Report
For the nine-month period ended December 31, 2016

6. Corporate bonds issued for the nine-month period ended December 31, 2016 are as follows:

Company name / Name of bonds
SoftBank Group Corp.
49th Unsecured Straight
Corporate Bond
50th Unsecured Straight
Corporate Bond
1st Unsecured Subordinated Bonds
with interest deferrable clauseand early redeemable option(with a subordination provision)
2nd Unsecured Subordinated Bonds
with interest deferrable clauseand early redeemable option(with a subordination provision)
3rd Unsecured Subordinated Bonds
with interest deferrable clauseand early redeemable option(with a subordination provision)

Date of issuanceTotal amountof issuanceInterest
rate

Date of maturity

April 20, 2016

¥20,000 million

1.94%

April 20, 2023

April 20, 2016

¥30,000 million

2.48%

April 20, 2026

Sept.16, 2016

¥55,600 million

3.00%7

Sept. 13, 20418

Sept. 16, 2016

¥15,400 million

3.50%7

Sept. 16, 20439

Sept. 30, 2016

¥400,000 million

3.00%7

Sept. 30, 204110

Notes:
7. The interest rate stated above is at the time of issuance. The bond has a step-up coupon provision and its interest rate
may increase in the future.
8. The bond has an early redeemable option at the Company’s discretion from September 16, 2021 and each interest dateafter September 16, 2021.
9. The bond has an early redeemable option at the Company’s discretion from September 16, 2023 and each interest dateafter September 16, 2023.
10. The bond has an early redeemable option at the Company’s discretion from September 30, 2021 and each interest dateafter September 30, 2021.
11. 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 condensed interim consolidated
statements of cash flows are as follows:(Millions of yen)

Nine-month period ended Nine-month period ended
December 31, 2015
December 31, 2016
(413,351)(519,536)(158,281)(350,081)(358,502)(338,717)(42,865)(36,933)(200,000)(1,172,999)(1,245,267)

Repayment of long-term borrowings
Redemption of corporate bonds1,4
Repayment of lease obligations
Payment of installment payables
Redemption of preferred securities
Total

50

SoftBank Group Corp. Consolidated Financial Report
For the nine-month period ended December 31, 2016

Notes:
1. Major Corporate bonds redeemed for the nine-month period ended December 31, 2015 are as follows:

Company name / Name of bonds

Date of issuance

Amount of redemption

Interest
rate

Date of redemption

June 2, 2010

¥25,000 million

1.67%

June 2, 2015

Jan. 20, 2011

$500 million¥60,535 million

4.08%3

Dec.15, 2015

9.50%

Dec.11, 2015

7.25%

Dec.11, 2015

SoftBank Group Corp.
32nd Unsecured Straight
Corporate Bond
Sprint Communications, Inc.2
Export Development Canada
Facility (Tranche 2)
Brightstar Corp.
9.50% senior notes due 2016

Nov. 30, 2010

7.25% senior notes due 2018

July 31, 2013$350 million¥42,375 million$250 million¥30,268 million

Notes:
2. Sprint Communications, Inc. is a subsidiary of Sprint.
3. The corporate bond has a floating interest rate and the interest rate stated above is at the time of redemption.
4. Major corporate bonds redeemed for the nine-month period ended December 31, 2016 are as follows:

Company name / Name of bonds

Date of issuance

Amount of redemption

Interest
rate

Date of redemption

June 17, 2011

¥100,000 million

1.00%

June 17, 2016

Nov. 20, 2006

$2,000 million¥217,440 million

6.00%

Dec.1, 2016

Jan. 27, 2012$300 million¥32,616 million

14.75%

Dec.1, 2016

SoftBank Group Corp.
36th Unsecured Straight
Corporate Bond
Sprint Communications, Inc.2
6.00% senior notes due 2016
Clearwire Communications LLC5
14.75% secured notes due 2016

Notes:
5. Clearwire Communications LLC is a subsidiary of Sprint.

51

SoftBank Group Corp. Consolidated Financial Report
For the nine-month period ended December 31, 2016

10. 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)
As of
December 31, 2016
116.49143.00As ofMarch 31, 2016112.68161.92USD
GBP(2) Average rate for the quarter
For the nine-month period ended December 31, 2015

USD

Three-month period ended
June 30, 2015
121.34Three-month period ended
September 30, 2015
121.91(yen)
Three-month period ended
December 31, 2015
121.07For the nine-month period ended December 31, 2016

USD

Three-month period ended
June 30, 2016
109.07(yen)
Three-month period ended Three-month period ended
September 30, 2016
December 31, 2016
102.91108.72

11. Equity(1) Capital surplus
For the nine-month period ended December 31, 2015
The Company acquired an additional 24.1% of shares of Supercell, a subsidiary of the Company, from existing
shareholders and the Company’s ownership in Supercell became 77.8%. In connection with this transaction,¥120,847 million is deducted from capital surplus as “Changes in interests in subsidiaries.”(2) Treasury stock
For the nine-month period ended December 31, 2016
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.
(3) Accumulated other comprehensive income
The components of accumulated other comprehensive income are as follows:(Millions of yen)

As ofMarch 31, 2016

As ofDecember 31, 2016

Available-for-sale financial assets

32,594

38,591

Cash flow hedges
Exchange differences on translating
foreign operations(40,088)(44,606)

269,230

306,029

261,736

300,014

Total

52

SoftBank Group Corp. Consolidated Financial Report
For the nine-month period ended December 31, 201612. Other operating loss
The components of other operating income and loss are as follows:(Millions of yen)

Sprint segment
Gain on spectrum license exchange1
Loss on disposal of property, plant andequipment2
Loss on contract termination3
U.S. state tax charge
Severance costs associated with reduction inwork force of Sprint
Legal reserves
Impairment loss on non-current assets4
Other
Distribution segment
Impairment loss on non-current assets5
ARM segment
Acquisition-related costs6
Company-wide
Expenses resulting from resignation of director7
Other
Total

Nine-month period ended
December 31, 2015

Nine-month period ended
December 31, 2016-

36,385(17,270)(39,617)-(12,287)(10,600)(23,556)(1,557)(21,682)(10,403)(7,528)(5,897)(13,633)--(23,696)(6,086)(100,158)(8,283)(65,552)

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 resulted 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. ¥7,801 millionof net loss recognized upon the sale of devices to Mobile Leasing Solutions, LLC under the Handset
Sale-Leaseback transaction for the nine-month period ended December 31, 2015. The details are described in“Note 5. Handset sale-leaseback.”
3. Loss mainly resulting from termination of wholesale contracts with NTELOS Holdings Corp.
4. Impairments are primarily related to cell site construction costs that are no longer expected to be used as a resultof changes in Sprint’s network plans.
5. As a result of reviewing the business plan of Brightstar Global Group Inc.’s Latin America region, therecoverable amount became negative and therefore the carrying amount related to the cash-generating unit was
reduced to zero. Impairment loss on property, plant and equipment was ¥8,070 million and impairment loss on
intangible assets was ¥5,563 million. Value in use was used as the recoverable amount and calculated bydiscounting a management approved estimated future cashflow plan by 22.11%, weighted average capital cost
before tax.
Goodwill of Brightstar Global Group Inc. is allocated to the entirety of Brightstar Global Group Inc. (a group of
cash-generating units) which bundles five cash-generating units in the Distribution segment. As a result of theimpairment test on the entirety of Brightstar Global Group Inc., subsequent to the recognition of the impairment
loss in Brightstar Global Group Inc.’s Latin America region for the nine-month period ended December 31, 2015,
the recoverable amount exceeded the carrying amount, and therefore the impairment loss on the goodwill
allocated to the entirety of Brightstar Global Group Inc. is not recognized.
6. Expenses arising from business combination of ARM. The details are described in “Note 3. Businesscombinations.”

53

SoftBank Group Corp. Consolidated Financial Report
For the nine-month period ended December 31, 2016

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 the three-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 recognized throughprofit or loss. The expenses were ¥3,266 million for the nine-month period ended December 31, 2016.
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.

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

Nine-month period ended
December 31, 2015

Nine-month period ended
December 31, 2016

(329,484)(343,363)

Interest expenses
14. Gain on sales of equity method associates
For the nine-month period ended December 31, 2016

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.
As a result of the sale, the Company held 29.9% of the voting rights of Alibaba as of December 31, 2016.
Note:*Alibaba Partnership is not an associate of Alibaba.

15. Derivative gain (loss)
For the nine-month period ended December 31, 2016
¥72,293 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 9. Interest-bearing debt.”

54

SoftBank Group Corp. Consolidated Financial Report
For the nine-month period ended December 31, 2016

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

Impairment loss on securities1
Dilution gain from changes in equity interest
Gain and loss from financial instruments at
FVTPL2
Impairment loss on assets classified as held
for sale3

Nine-month period ended
December 31, 2015
(21,572)
14,654Nine-month period ended
December 31, 2016
(4,211)75,060108,426(39,281)-(42,540)(20,534)-

14,237
95,211(2,504)(13,476)

Provision of allowance for doubtful accounts1
Other
Total

Notes:
1. Shares and debt interests related to investments of PT Trikomsel Oke Tbk. in Indonesia were impaired as theinvestments amount and the debt interests amount were not expected to be collected. As a result, impairment loss on
securities and provision of allowance for doubtful accounts totaling ¥38,185 million were recorded for thenine-month period ended December 31, 2015.
2. Gain or loss arising from financial instruments at FVTPL comprises mainly of changes in fair value of preferredstock investment including embedded derivatives, such as ANI Technologies Pvt. Ltd and Jasper Infotech Private
Limited in India, designated as financial assets at FVTPL.
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. The details are described in “(1) GungHo” in “Note 17. Discontinued operations.”

17. Discontinued operations(1) GungHo
SoftBank Group Corp. entered into an agreement to tender in the Tender Offer for 188,235,200 shares, a portion of
the common shares of GungHo held by SoftBank Group Corp, on April 28, 2015. The Tender Offer was completed
on June 1, 2015, and 188,235,200 common shares of GungHo held by Softbank Group Corp. were transferred to
GungHo for ¥80,000 million.
An agreement between Heartis G.K. (“Heartis”) and Son Holdings Inc. to extinguish the pledge on 100,000,000
shares, out of the common shares of GungHo held by Heartis, was executed and the Agreement on Exercise of
Voting Rights* for the 100,000,000 shares was terminated effective on June 1, 2015.
As a result of the transactions, GungHo was no longer qualified as a subsidiary and became an equity method
associate on June 1, 2015.
Operating results associated with GungHo from April 1, 2015 to June 1, 2015 are presented as discontinued
operations separately from continuing operations in the condensed interim consolidated statements of income.
Note:* Heartis (Taizo Son’s asset management company, the second largest shareholder of GungHo, and Taizo Son,chairman of GungHo is the representative director), and Masayoshi Son, chairman and CEO of SoftBank Group
Corp., entered into a Memorandum of Understanding on Exercise of Voting Rights for Deferment of Execution of
Pledges (the “MOU”), on April 1, 2013. Under the MOU, all of GungHo common shares held by Heartis were
pledged to Son Holdings, Masayoshi Son’s asset management company and in order to defer the execution of55

SoftBank Group Corp. Consolidated Financial Report
For the nine-month period ended December 31, 2016

pledges, Heartis agreed to act on behalf of Masayoshi Son at the shareholders’ meeting of GungHo, for the voting
rights related to 213,080,000 shares (ownership ratio: 18.50%) out of the common shares of GungHo held by Heartis.
In addition, the title of Taizo Son was changed from chairman of GungHo to director of GungHo, effective on March
22, 2016.

A portion of GungHo common shares held by the Company were tendered in the Tender Offer by GungHo from
June 23, 2016. The transaction was completed on July 21, 2016, and 245,592,400 shares of GungHo held by theCompany were tendered. As a result of the transaction, GungHo is no longer qualified as an equity method
associate of the Company from August 16, 2016.

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

Revenue
Expenses
Income before income tax from discontinued
operations
Income taxes
Income after income tax from discontinued operations
Loss associated with loss of control in discontinued
operations
Deferred tax expenses for temporary differences
associated with investment
Net loss from discontinued operations

Nine-month period ended
December 31, 2015
26,604(17,404)

Nine-month period ended
December 31, 2016
-

9,200

-

(3,568)
5,632-(12,739)

-

139

-

(6,968)-In addition, the above net loss 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)

Nine-month period ended
December 31, 2015
16,051(735)(86)
15,230Net cash provided by operating activities
Net cash used in investing activities
Net cash used in financing activities
Total

Nine-month period ended
December 31, 2016-(2) Supercell
The Company entered into a definitive agreement with Tencent Holdings Limited and its affiliate (“Tencent
affiliate”), Supercell and other parties on June 21, 2016 to sell all of its shares of Supercell, to 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 nine-month period ended December 31, 2015, and for thenine-month period ended December 31, 2016 are presented as discontinued operations separately fromcontinuing operations in the condensed interim consolidated statements of income.

56

SoftBank Group Corp. Consolidated Financial Report
For the nine-month period ended December 31, 2016

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

Nine-month period ended
December 31, 2015
206,371(136,262)

Nine-month period ended
December 31, 2016
80,735(46,075)

70,10934,660(14,060)
56,049-(6,414)28,246636,216-(111,157)

56,049553,305

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)

Nine-month period ended
December 31, 2015
84,525(37,688)(14,980)
31,857

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

Nine-month period ended
December 31, 2016
44,065(166)(17,557)
26,342

18. Supplemental information to the condensed interim consolidated statements of cash flows(1) Scope of purchase of property, plant and equipment, and intangible assets“Purchase of property, plant and equipment, and intangible assets” includes a portion of cash outflows fromlong-term prepaid expenses that are included in “Other non-current assets” in the condensed interim consolidated
statements of financial position.
(2) Presentation of cash flow regarding finance leases
Once the Company purchases telecommunications equipment for the purpose of assembly, installation andinspection, the Company sells the equipment to lease companies for sale and leaseback purposes. The leased asset
and lease obligation are recorded in the condensed interim consolidated statements of financial position.
The cash outflows from the purchase of the equipment from vendors are included in “Purchase of property, plantand equipment, and intangible assets” under cash flows from investing activities, and the cash inflows from thesale of the equipment to lease companies are included in “Proceeds from long-term interest-bearing debt” undercash flows from financing activities.
(3) Gain on sales of discontinued operations
For the nine-month period ended December 31, 2016
Gain on sales of subsidiaries arising from sale of Supercell shares. The details are described in “(2) Supercell” in“Note 17. Discontinued operations.”

57

SoftBank Group Corp. Consolidated Financial Report
For the nine-month period ended December 31, 2016(4) Income taxes paid and income taxes refund
For the nine-month period ended December 31, 2015
Payment of withholding income tax related to dividends within the group companies of ¥904,688 million is
included in “Income taxes paid,” and refund of the withholding income tax of ¥611,199 million is included in“Income taxes refund,” respectively.
For the nine-month period ended December 31, 2016
Payment of withholding income tax related to dividends within the group companies of ¥85,048 million is
included in “Income taxes paid,” and refund of the withholding income tax of ¥293,489 million is included in“Income taxes refund,” respectively.
(5) Proceeds from sales of property, plant and equipment, and intangible assets
For the nine-month period ended December 31, 2015
Proceeds of ¥137,593 million which Sprint received from Mobile Leasing Solutions, LLC through Handset
Sale-Leaseback transaction in December 2015 are included in “Proceeds from sales of property, plant andequipment, and intangible assets.” The details are described in “Note 5. Handset sale-leaseback.”(6) Proceeds from sales and redemption of investments
For the nine-month period ended December 31, 2016
Proceeds related to sales of Alibaba shares of ¥359,704 million ($3.4 billion) are included. The details aredescribed in “Note 14. Gain on sales of equity method associates.”(7) (Decrease) increase from loss of control over subsidiaries
For the nine-month period ended December 31, 2015
“Decrease from loss of control over subsidiaries” is the amount of cash and cash equivalents held by GungHo atthe time of loss of control.
For the nine-month period ended December 31, 2016
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.

58

SoftBank Group Corp. Consolidated Financial Report
For the nine-month period ended December 31, 2016b. 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
23,778(8) Payments for purchase of subsidiaries’ equity from non-controlling interests
For the nine-month period ended December 31, 2015
“Payments for purchase of subsidiaries’ equity from non-controlling interests” is mainly due to the additionalpurchase of shares of Supercell and Sprint from existing shareholders respectively.
(9) Significant non-cash transactions
Significant non-cash investing and financing activities are as follows:(Millions of yen)Transfer of leased devices from inventories toproperty, plant and equipment
Embedded derivatives included in sale of shares by
variable prepaid forward contract*

Nine-month period ended
December 31, 2015

Nine-month period ended
December 31, 2016

318,520

244,488-

95,587Note:* The details are described in “(2) Transaction for sale of Alibaba shares by variable prepaid forward contract” in“Note 9. Interest-bearing debt.”

In addition to the above, ASKUL Corporation became a subsidiary of the Company for the nine-month period
ended December 31, 2015, and the transaction related to this business combination is classified as a non-cash
transaction because it was conducted by ASKUL Corporation’s acquisition of its own treasury stock. The details
are described in “Note 3. Business combinations.”

19. Significant subsequent events
On February 3, 2017, Sprint entered into a new credit agreement for $6.0 billion, consisting of a $4.0 billion,
seven-year secured term loan that matures in February 2024 and a $2.0 billion secured revolving bank credit facility*that expires in February 2021. The term loan has an interest rate equal to LIBOR plus 250 basis points and the bankfacility has an interest rate equal to LIBOR plus a spread that varies depending on Sprint’s leverage ratio. The newcredit facility replaced the $3.3 billion unsecured revolving bank credit facility that was due to expire in February
2018.
Note:
* A form of loan that allows borrowing within a specified period and maximum amount.

59