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 5 of this report.

SoftBank Group Corp.
Consolidated Financial Report
For the fiscal year ended March 31, 2016 (IFRS)Tokyo, May 10, 2016

1.

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

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

OperatingincomeNet sales
AmountIncomebefore income
tax

Total
comprehensive
incomeAmountAmountAmount%Amount%AmountFiscal year ended
March 31, 2016

¥9,153,549 7.6¥999,488

8.8¥1,005,764 (17.1) ¥558,241 (26.9) ¥474,172 (29.1) ¥259,592 (77.0)

Fiscal year ended
March 31, 2015

¥8,504,135¥918,720-¥1,213,035-%

Net income

Net income
attributable toowners of theparent%%%¥763,682 32.1 ¥668,361 28.5 ¥1,128,262 117.8-

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

Basic earnings
per share (yen)Diluted earnings
per share (yen)Fiscal year ended
March 31, 2016

¥402.49¥388.32

17.4

4.8

10.9

Fiscal year ended
March 31, 2015

¥562.20¥558.75

28.0

6.4

10.8

Notes:
1. Income on equity method investments
Fiscal year ended March 31, 2016:¥ 375,397 million
Fiscal year ended March 31, 2015:¥ 76,614 million
2. Net sales, operating income, and income before income tax for the fiscal year ended March 31, 2016 are presented based on theamounts from continuing operations only. Year-on-year percentage changes in net sales, operating income, and income before
income tax for the fiscal year ended March 31, 2015 are not presented because corresponding amounts for the fiscal year ended
March 31, 2015 are revised and presented respectively.
Please refer to page 82 “Note 18. Discontinued operations” under “5. Consolidated Financial Statements (6) Notes toConsolidated Financial Statements” for details.

(2) Financial Position

Total assets

Total equity

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

Equity per share
attributable toowners of theparent (yen)As of March 31, 2016

¥20,707,192¥3,505,271¥2,613,613

12.6

2,278.85

As of March 31, 2015

¥21,034,169¥3,853,177¥2,846,306

13.5

2,393.47

(3) Cash Flows2.

Cash and cash
equivalents
at the end of the year

Operating activities

Investing activities

Financing activities

Fiscal year ended
March 31, 2016

¥940,186¥(1,651,682)¥43,270¥2,569,607

Fiscal year ended
March 31, 2015

¥1,155,174¥(1,667,271)¥1,719,923¥3,258,653

Dividends
Dividends per shareFirst quarter
Fiscal year ended
March 31, 2015
Fiscal year ended
March 31, 2016
Fiscal year ending
March 31, 2017
(Forecasted)

Fiscal year ended
March 31, 2015
Fiscal year ended
March 31, 2016
Fiscal year ending
March 31, 2017
(Forecasted)

Second quarter

Third quarter

Fourth quarter

Total

(yen)

(yen)

(yen)

(yen)

(yen)

-

20.00

-

20.00

40.00

-

20.00

-

21.00

41.00

-

22.00

-

22.00

44.00

Total amount ofdividends(Annual)Payout ratio(Consolidated)

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

47,5627.1

2.0

47,562

10.2

1.8

-

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 rational projections.
* Notes(1) Significant changes in scope of consolidation (changes in scope of consolidation of specified subsidiaries): Yes
Excluded from consolidation: Five companies
SoftBank BB Corp. SoftBank Telecom Corp. Ymobile Corporation
Mobiletech Corporation BB Mobile Corp.
Please refer to page 42 “(1) Significant Changes in Scope of Consolidation for the Fiscal Year Ended March 31, 2016”
under “4. 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 42 “(2) Changes in Accounting Estimates” under “4. Notes to Summary Information” for details.

(3) Number of shares issued (common stock)[1] Number of shares issued (including treasury stock):
As of March 31, 2016:
1,200,660,365 shares
As of March 31, 2015:
1,200,660,365 shares[2] Number of treasury stock:
As of March 31, 2016:
53,760,198 shares
As of March 31, 2015:
11,463,275 shares[3] Number of average stocks during twelve-month period (April-March):
Fiscal year ended March 31, 2016:
1,178,097,662 sharesFiscal year ended March 31, 2015:
1,188,830,428 shares

SoftBank Group Corp. Consolidated Financial Report
For the fiscal year ended March 31, 2016

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

Net sales

Operating income

Ordinary income

Net income

Amount%Amount%Amount%Amount%Fiscal year ended
March 31, 2016

¥46,118(2.8)¥11,478(56.5)¥1,193,181-¥779,783-

Fiscal year ended
March 31, 2015

¥47,423(4.4)¥26,402(23.3)¥40,482(83.5)¥3,272(98.7)Net income pershare-basic (yen)Net income pershare-diluted (yen)Fiscal year ended
March 31, 2016

¥661.90¥661.59

Fiscal year ended
March 31, 2015

¥2.75

¥2.75

(2) Non-Consolidated Financial Position
Total assets

Net Assets

Equity ratio (%)

Shareholders’ equity
per share (yen)As of March 31, 2016

¥7,570,937¥1,360,467

18.0¥1,186.19

As of March 31, 2015

¥7,172,905¥894,693

12.5¥752.04

Note: Shareholders’ equity (Non-consolidated)
As of March 31, 2016:¥1,360,447 million
As of March 31, 2015:¥894,329 million(3) Differences in Non-Consolidated Operating Results from the Previous Fiscal Year
The increase in ordinary income and net income in the fiscal year ended March 2016 from the previous fiscal year ended
March 2015 was mainly attributable to a ¥1,176,653 million year-on-year increase in dividends from subsidiaries andassociates.
Financial Highlights (Non-Consolidated) are prepared under Japanese Generally Accepted Accounting Principles (“JGAAP”).
* Implementation status of audit proceduresThis consolidated financial report is not subject to audit procedures based on the Financial Instruments and Exchange Act, andthe audit procedures for the consolidated financial statements were being conducted when this report was disclosed.
* Note to forecasts on the consolidated results of operations and other items
The company name was changed from SoftBank Corp. to SoftBank Group Corp. on July 1, 2015.
The forecast figures are estimated based on the information that the Company is able to obtain at the present point andassumptions which are deemed to be reasonable. However, actual results may be different due to various factors.
On May 10, 2016, the Company will hold an earnings results briefing for the media, institutional investors, and financial
institutions. This earnings results briefing will be broadcast live on our website in both Japanese and English at
http://www.softbank.jp/en/corp/irinfo/. The Earnings Results Data Sheet will also be posted on the Company’s website around
4 p.m. on the same day at http://www.softbank.jp/en/corp/irinfo/presentations/.

SoftBank Group Corp. Consolidated Financial Report
For the fiscal year ended March 31, 2016

(Appendix)
Contents
1. Results of Operations .............................................................................................................................................. P. 3
(1) Analysis of Results of Operations .................................................................................................................... P. 3
a. Consolidated Results of Operations ............................................................................................................... P. 3
b. Results by Segment ....................................................................................................................................... P. 8
(Reference 1: Principal Operational Data) ........................................................................................................ P. 23(Reference 2: Definitions and Calculation Methods of Principal Operational Data) ........................................ P. 26(Reference 3: Capital Expenditure, Depreciation and Amortization) ................................................................ P. 28
c. Forecasts on the Consolidated Results of Operations for the Fiscal Year Ending March 2017 .................. P. 29(2) Analysis of Financial Position .......................................................................................................................... P. 30
a. Assets, Liabilities and Equity ........................................................................................................................ P. 30
b. Cash Flows .................................................................................................................................................... P. 36(3) Fundamental Policy for Distribution of Profit and Dividend for the Fiscal Year Ended March 2016 ............. P. 39
2. Management Policies ............................................................................................................................................... P. 40(1) Basic Management Approach .......................................................................................................................... P. 40(2) Target Management Index ............................................................................................................................... P. 40(3) Medium- to Long-term Strategies ..................................................................................................................... P. 40(4) Important Management Issues for the Company ............................................................................................... P. 41
3. Basic Approach to the Selection of Accounting Standards ...................................................................................... P. 41
4. Notes to Summary Information ............................................................................................................................... P. 42(1) Significant Changes in Scope of Consolidation for the Fiscal Year Ended March 31, 2016 ............................. P. 42(2) Changes in Accounting Estimates ..................................................................................................................... P. 42
5. Consolidated Financial Statements .......................................................................................................................... P. 43(1) Consolidated Statements of Financial Position ................................................................................................. P. 43(2) Consolidated Statements of Income and Comprehensive Income ..................................................................... P. 45(3) Consolidated Statements of Changes in Equity ................................................................................................. P. 47(4) Consolidated Statements of Cash Flows ............................................................................................................ P. 49(5) Significant Doubt about Going-concern Assumption ........................................................................................ P. 50(6) Notes to Consolidated Financial Statements ..................................................................................................... P. 50

1SoftBank Group Corp. Consolidated Financial Report
For the fiscal year ended March 31, 2016

Change of Company Names
On July 1, 2015, SoftBank Corp., the pure holding company, changed its company name to SoftBank Group Corp.
Moreover, on April 1, 2015, SoftBank Mobile Corp., the company that operates the telecommunications business in Japan,
absorbed SoftBank BB Corp., SoftBank Telecom Corp., and Ymobile Corporation and was renamed SoftBank Corp. on
July 1, 2015. The company names that appear in this appendix are the names as of the publication date of this financial
report.
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 the context,
are as follows:
Company Name/ Abbreviation

Definition“SoftBank Group Corp.”

SoftBank Group Corp. (stand-alone basis)

The “Company”

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

Sprint Corporation“Brightstar”

Brightstar Global Group Inc.

“Supercell”

Supercell Oy“Alibaba”

Alibaba Group Holding Limited“GungHo”

GungHo Online Entertainment, Inc.

2

SoftBank Group Corp. Consolidated Financial Report
For the fiscal year ended March 31, 2016

1. Results of Operations(1) Analysis of Results of Operations
a. Consolidated Results of Operations(Millions of yen)
Fiscal Year Ended
March 31, 2015

Fiscal Year Ended
March 31, 2016

ChangeChange %Continuing operations
Net sales

8,504,135

9,153,549

649,4147.6％

918,720

999,488

80,7688.8%(incl.) Gain fromremeasurement relating tobusiness combination-

59,44159,441-

Income before income tax

1,213,035

1,005,764(207,271)(17.1％)(incl.) Dilution gain fromchanges in equity interest

599,815

14,903(584,912)-

Net income from continuing
operations

742,718565,209(177,509)(23.9％)

20,964(6,968)(27,932)-

763,682558,241(205,441)(26.9％)

668,361

474,172(194,189)(29.1％)

Operating income

Discontinued operations
Net income (loss) fromdiscontinued operations
Net income
Net income attributable toowners of the parent

Reference: Average exchange rates used for translation
Fiscal Year Ended March 2015

USD /
JPY

Fiscal Year Ended March 2016

Three-month
Period Ended
June 30, 2014

Three-month
Period Ended
Sept. 30, 2014

Three-month
Period Ended
Dec. 31, 2014

Three-month
Period Ended
Mar. 31, 2015

Three-month
Period Ended
June 30, 2015

Three-month
Period Ended
Sept. 30, 2015

Three-month
Period Ended
Dec. 31, 2015

Three-month
Period Ended
Mar. 31, 2016

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

¥102.14¥104.35¥114.39¥119.56¥121.34¥121.91¥121.07¥116.95< Results Related to GungHo >In the fiscal year ended March 31, 2016 (the “fiscal year”), GungHo no longer qualified as a subsidiary and became an
equity method associate as a result of the completion of a tender offer by GungHo for its own shares, in which the Company
tendered, and the extinguishment of a pledge on 100,000,000 of GungHo’s common shares held by Heartis G.K. (a pledge
with Son Holdings Inc. as the pledgee). Accordingly, GungHo’s net income and loss up until June 1, 2015, when GungHo
became an equity method associate, are presented as discontinued operations separately from continuing operations. The
Company’s equity in the net income and loss of GungHo following its transition to an equity method associate arerecognized as income and loss on equity method investments under continuing operations.

Net income and loss of

GungHo for the fiscal year ended March 31, 2015 (the “previous fiscal year”) are revised retrospectively and presented
under discontinued operations.
Please refer to page 82 “18. Discontinued operations” under “5. Consolidated Financial Statements (6) Notes toConsolidated Financial Statements” for details.

3SoftBank Group Corp. Consolidated Financial Report
For the fiscal year ended March 31, 2016

Earnings for the Fiscal
Year Ended March2015

Fiscal Year Ended March 2015

Fiscal Year Ended March 2016

Three-month
Period Ended
June 30, 2014

Three-month
Period Ended
Sept. 30, 2014

Three-month
Period Ended
Dec. 31, 2014

Three-month
Period Ended
Mar. 31, 2015

Three-month
Period Ended
June 30, 2015

Three-month
Period Ended
Sept. 30, 2015

Three-month
Period Ended
Dec. 31, 2015

Three-month
Period Ended
Mar. 31, 2016

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Continuing Operations(GungHo’s earnings were included as a subsidiary)

Earnings for the Fiscal
Year Ended March
2016

June 1
GungHo changed to an equity method
associate from a subsidiary

Discontinued Operations

Continuing Operations

Net income and loss from discontinued operations

Income and loss on equity method investments

An overview of the consolidated results of operations for the fiscal year is as follows:
From the three-month period ended June 30, 2015 (the “first quarter”), the Company’s reportable segments have beenchanged to the Domestic Telecommunications segment, the Sprint segment, the Yahoo Japan segment, and the Distribution
segment.

Please refer to page 8 “b. Results by Segment” for details.

(Continuing Operations)(a) Net Sales
Net sales totaled ¥9,153,549 million, an increase of ¥649,414 million (7.6%) year on year. This resulted from increases
in net sales of all the segments.
The Domestic Telecommunications segment’s net sales (for customers) amounted to ¥3,106,855 million, an increaseof ¥121,211 million (4.1%) year on year. The main reason for the increase was increases in both telecom service
revenue and product and other sales at SoftBank Corp.
The Sprint segment’s net sales (for customers) totaled ¥3,688,498 million, an increase of ¥94,331 million (2.6%) year
on year.

The increase was due to the yen’s year-on-year depreciation against the U.S. dollar, while the U.S. dollar-

based net sales decreased year on year.
The Yahoo Japan segment’s net sales (for customers) was ¥642,880 million, an increase of ¥222,495 million (52.9%)
year on year.

The main reason for the increase was the consolidation of ASKUL Corporation by Yahoo Japan

Corporation in August 2015.
The Distribution segment’s net sales (for customers) amounted to ¥1,345,856 million, an increase of ¥175,419 million(15.0%) year on year.

(b) Operating Income
Operating income totaled ¥999,488 million, an increase of ¥80,768 million (8.8%) year on year. The main reason for4SoftBank Group Corp. Consolidated Financial Report
For the fiscal year ended March 31, 2016

the increase was increases in income of ¥47,891 million in the Domestic Telecommunications segment and ¥29,258
million in the Yahoo Japan segment.
The income in the Yahoo Japan segment includes a gain from remeasurement relating to business combination of¥59,441 million (not recorded in the previous fiscal year). This was recorded by Yahoo Japan Corporation due to theremeasurement at fair value of its existing equity interest at the time when it consolidated ASKUL Corporation.

(c) Finance Cost
Finance cost totaled ¥440,744 million, an increase of ¥74,244 million (20.3%) year on year. The increase was mainly
due to increases in the interest expense of Sprint and SoftBank Group Corp.
(Millions of yen)

Fiscal Year Ended
March 31, 2015
Finance cost(incl.) Sprint

Fiscal Year Ended
March 31, 2016

Change(366,500)(440,744)(74,244)(236,776)(278,157)(41,381)(d) Income on Equity Method Investments
Income on equity method investments was ¥375,397 million, an increase of ¥298,783 million (390.0%) year on year. Thiswas mainly due to recording income on equity method investments of ¥380,655 million for the fiscal year, which is presented
as (C) under page 5 “Reference: Amount of Impact of Alibaba on the Company’s Consolidated Income before Income Tax”
(the “impact amount table”), as the portion attributable to the Company out of Alibaba’s net income of ¥1,175,236 million(IFRSs basis). Net income at Alibaba includes gain from remeasurement relating to business combination of ¥369,994
million, which was recorded due to remeasurement at fair value of Alibaba’s existing equity interest in its equity method
associate Alibaba Health Information Technology Limited at the time of its consolidation in July 2015. Of this, ¥119,121
million was income attributable to the Company, as shown in the impact amount table as (D).
The Company’s income on equity method investments was subdued at ¥76,614 million in the previous fiscal year
primarily because income on equity method investments related to Alibaba was ¥67,460 million, shown as (E) in the impact
amount table. This was because Alibaba’s net income of ¥203,126 million (IFRSs basis) reflected a loss of ¥398,716
million recognized in conjunction with an increase in the fair value of Convertible Preference Shares issued by Alibaba.
Of this, ¥144,235 million was loss attributable to the Company, presented as (F) in the impact amount table.
(Millions of yen)

Fiscal Year Ended
March 31, 2015
Income on equity method
investments(incl.) Alibaba

Fiscal Year Ended
March 31, 2016

ChangeChange %76,614375,397298,783

390.0％

67,460380,655

313,195

464.3％(e) Dilution Gain from Changes in Equity Interest
Dilution gain from changes in equity interest was ¥14,903 million, a decrease of ¥584,912 million year on year. Thisis mainly attributable to the Company recording dilution gain from changes in equity interest of ¥599,396 million in the5SoftBank Group Corp. Consolidated Financial Report
For the fiscal year ended March 31, 2016previous fiscal year, as shown in the impact amount table as (G), in connection with the listing of Alibaba in September
2014, primarily as a result of the issuance of new shares by Alibaba and the conversion of its Convertible Preference
Shares into common stock. ¥11,992 million was recorded in the fiscal year, which is presented as (H) in the impact
amount table.
Reference: Amount of Impact of Alibaba on the Company’s Consolidated Income before Income Tax(Millions of yen)

Fiscal Year Ended
March 31, 2015

Fiscal Year Ended
March 31, 2016

Income and loss on equity method
investments related to Alibaba (A)(E)

67,460(C)

Loss on increase in fair value ofConvertible Preference Shares (i)(F)(144,235)

Gain from remeasurement relating tobusiness combination (ii)-

Income on equity method investments
excluding (i) and (ii)

211,695

Dilution gain from changes in equity
interest related to Alibaba, net (B)

(G)

(D)

599,396(H)

Change380,655

313,195-

144,235

119,121

119,121261,534

49,83911,992(587,404)(incl.) Dilution gain from changes inequity interest due to listing

563,111-(563,111)

Amount of impact of Alibaba on the
Company’s consolidated income before
income tax (A) + (B)666,856

392,647(274,209)(f) Other Non-operating Income and Loss
Other non-operating income was ¥56,720 million, an improvement of ¥72,334 million compared to a loss of ¥15,614
million in the previous fiscal year. The primary components of other non-operating income and loss were as follows:i. Gain from financial assets at FVTPL (Fair Value Through Profit or Loss) was ¥114,377 million, an increase of¥103,168 million year on year. This was due to recording the amount of changes in the fair value of the Company’s
financial assets at FVTPL during the period from March 31, 2015 (the “previous fiscal year-end”) to March 31, 2016
(the “fiscal year-end”) as gain and loss from financial assets at FVTPL.

Financial assets at FVTPL includes

preferred shares of ANI Technologies Pvt. Ltd., which operates the taxi booking platform Ola in India, and Jasper
Infotech Private Limited, which operates the e-commerce website snapdeal.com also in India.
Financial assets at FVTPL is a class of financial instruments under IFRSs.

The fair value of financial assets at

FVTPL is required to be measured at the end of each quarter, with changes to be recognized as net income or loss.
ii. A total of ¥38,185 million was recorded for impairment loss on securities and provision of allowance for doubtful
accounts as a loss due to the writing down of the value of shares and debt interests related to investments in PT
Trikomsel Oke Tbk. in Indonesia.

Currently, PT Trikomsel Oke Tbk. is formulating a debt consolidation plan,

having temporarily halted debt payments to rebuild the company in accordance with the procedure for suspension ofdebt payment obligations (PKPU) provided by the bankruptcy law of Indonesia.
Please refer to page 82 “17. Other non-operating income (loss)” under “5. Consolidated Financial Statements (6)Notes to Consolidated Financial Statements” for details.

6SoftBank Group Corp. Consolidated Financial Report
For the fiscal year ended March 31, 2016(g) Income before Income Tax
As a result of (b) to (f), income before income tax was ¥1,005,764 million, a decrease of ¥207,271 million (17.1%) year
on year.

(h) Income Taxes
Income taxes were ¥440,555 million, a decrease of ¥29,762 million (6.3%) year on year. The effective income tax rate
for the fiscal year was 43.8% despite the statutory income tax rate being 33.1%, mainly because deferred tax assets were
not recognized for the loss at Sprint.

Meanwhile, tax effects were recognized in principle for income on equity method

investments such as Alibaba and gain from financial assets at FVTPL.

(i) Net Income from Continuing Operations
As a result of (g) and (h), net income from continuing operations totaled ¥565,209 million, a decrease of ¥177,509
million (23.9%) year on year.

(Discontinued Operations)(j) Net Income and Loss from Discontinued Operations
Net loss from discontinued operations was ¥6,968 million (net income of ¥20,964 million was recorded in the previous
fiscal year). This was due to recording ¥12,739 million primarily for loss relating to loss of control in discontinued
operations related to GungHo, while also recording its income after income tax of ¥5,632 million for the period from
April 1 to June 1, 2015.

The amount of loss relating to loss of control in discontinued operations is the difference

between the carrying amount of GungHo on a consolidated basis and its fair value, which is the closing share price of
GungHo multiplied by the number of its shares held by the Company, at the time of loss of control over GungHo on
June 1, 2015.

(k) Net Income
As a result of (i) and (j), net income amounted to ¥558,241 million, a decrease of ¥205,441 million (26.9%) year on year.

(l) Net Income Attributable to Owners of the Parent
After deducting net income attributable to non-controlling interests such as Yahoo Japan Corporation, Sprint, andSupercell from (k), net income attributable to owners of the parent amounted to ¥474,172 million, a decrease of ¥194,189
million (29.1%) year on year.

(m) Comprehensive Income
Comprehensive income totaled ¥259,592 million, a decrease of ¥868,670 million (77.0%) year on year.

Of this,comprehensive income attributable to owners of the parent was ¥195,864 million, a decrease of ¥795,807 million(80.2%) year on year.

7SoftBank Group Corp. Consolidated Financial Report
For the fiscal year ended March 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.
In preparation for the transition to “SoftBank 2.0,” the Company has initiated its transformation from a strong Japanesebusiness with global assets to a global business that will strive to create sustainable growth over the long term. In linewith this, the Company has revised its segment classifications and changed its reportable segments from the fiscal year
ended March 2016 as follows:
Reportable segments until the fiscal year ended March 2015
Segments

Main Businesses

Core Companies

Reportable segments

・Provision of mobile communications services in Japan・Sale of mobile devices and accessories
・Sale of PC software and peripherals
・Production and distribution of online games for smartphones
and other devices

Former SoftBank Mobile Corp.
Former Ymobile Corporation
Wireless City Planning Inc.
MobileFormer SoftBank Telecom Corp.
Communications
Brightstar Corp.
GungHo Online Entertainment, Inc.
Supercell Oy
・Provision of mobile communications services by Sprint in the Sprint Corporation
U.S.
Sprint・Sale of mobile devices and accessories accompanying theabove services
・Provision of fixed-line telecommunications services by Sprint
Former SoftBank Telecom Corp.
・Provision of telecom services such as fixed-line telephone
Former SoftBank BB Corp.
and data communications services to domestic corporate
Fixed-line
Former Ymobile Corporation
customers
Telecommunications
・Provision of broadband services to domestic retail customers Yahoo Japan Corporation
・Services accompanying the above services
Yahoo Japan Corporation
・Internet advertisingInternet・e-commerce business・Membership services
Others・Fukuoka SoftBank HAWKS related businesses
Fukuoka SoftBank HAWKS Corp.

Reportable segments adopted in the fiscal year ended March 2016

Reportable segments

Segments

Main Businesses

Core Companies

・Provision of mobile communications services in Japan
SoftBank Corp.
・Sale of mobile devices in Japan
Wireless City Planning Inc.
Domestic
・Provision of broadband services to retail customers in Japan
Telecommunications ・Provision of telecom services to corporate customers inJapan, such as data communications and fixed-line telephoneservices
Sprint Corporation
・Provision of mobile communications services in the U.S.
・Sale and lease of mobile devices and sale of accessories in
Sprintthe U.S.
・Provision of fixed-line telecommunications services in the
U.S.
Yahoo Japan Corporation
・Internet advertising
ASKUL Corporation
Yahoo Japan・e-commerce business・Membership services
Brightstar Corp.
・Distribution of mobile devices overseas
SoftBank Commerce & Service Corp.
Distribution
・Sale of PC software, peripherals, and mobile device
accessories in Japan
Supercell Oy
・Production and distribution of online games for smartphones
Othersand other devices
Fukuoka SoftBank HAWKS Corp.
・Fukuoka SoftBank HAWKS related businesses

8SoftBank Group Corp. Consolidated Financial Report
For the fiscal year ended March 31, 2016

Notes:
1. The results for the previous fiscal year are presented in accordance with the reportable segments adopted in the fiscal year ended
March 2016.
2. The results at Yahoo Japan Corporation related to Yahoo! BB, the broadband service that is run jointly by SoftBank Corp. andYahoo Japan Corporation, are included under the Yahoo Japan segment after the change. The results were previously included
under the Fixed-line Telecommunications segment.
3. The calculation method of segment income has been changed from the fiscal year ended March 2016 as follows:
Before the change:
Segment income = (net sales – cost of sales – selling, general and administrative expenses) in each segment
After the change:
Segment income = (net sales – cost of sales – selling, general and administrative expenses + gain from remeasurement
relating to business combination ± other operating income (loss)) in each segment
4. Adjusted EBITDA in each segment = (segment income (loss) + depreciation and amortization – gain from remeasurement
relating to business combination ± other operating income (loss)) in each segment
The amount disclosed as EBITDA through to the three-month period ended December 31, 2015 (the “third quarter”) is now
presented as adjusted EBITDA from the three-month period ended March 31, 2016 (the “fourth quarter”).
5. ¥37,032 million of loss on “disposal of property, plant and equipment” recognized as “other operating loss” in the consolidated
statements of income for the fiscal year is not included in “other operating loss” in the Sprint segment. The details are describedin page 80 “14. Other operating loss” under “5. Consolidated Financial Statements (6) Notes to Consolidated Financial
Statements.”(a) Domestic Telecommunications Segment(Millions of yen)

Fiscal Year Ended
March 31, 2015
Net sales

Fiscal Year Ended
March 31, 2016

ChangeChange %3,019,393

3,144,650

125,257

4.1%

Segment income

640,498

688,389

47,891

7.5%

Depreciation andamortization

453,728474,948

21,220

4.7%

Other operating loss

21,271-(21,271)-

Adjusted EBITDA

1,115,497

1,163,337

47,840

4.3%

Note:
6. The amount disclosed as EBITDA through to the third quarter is now presented as adjusted EBITDA from the fourth quarter.

< Overview of the Segment >The Domestic Telecommunications segment comprises the subsidiaries that operate domestic telecommunications
businesses, such as SoftBank Corp. and Wireless City Planning Inc.

SoftBank Corp. provides (i) mobile

communications services under the SoftBank and Y!mobile brands, (ii) broadband services for retail customers, such as
SoftBank Hikari1 and Yahoo! BB, and (iii) fixed-line telecommunications services for corporate customers, such as data
communications and fixed-line telephone services. Wireless City Planning Inc. provides broadband wireless access(BWA) services using the 2.5 GHz band.
The segment’s net sales are categorized as telecom service revenue and product and other sales.

Telecom service

revenue includes the communication revenues of each service (i)-(iii) above, as well as device warranty service revenue,

1

A fiber-optic service using the wholesale fiber-optic connection of NIPPON TELEGRAPH AND TELEPHONE EAST CORPORATION (“NTT East”)
and NIPPON TELEGRAPH AND TELEPHONE WEST CORPORATION (“NTT West”)

9SoftBank Group Corp. Consolidated Financial Report
For the fiscal year ended March 31, 2016advertising revenue, and content-related revenues. Product and other sales include the sales of mobile devices formobile communications services and the sales of terminals for broadband services on customer premises.
Looking ahead, the market of domestic telecommunications, such as mobile communications services, is expected to
grow more slowly than in the past.

In this environment, to ensure steady profit growth in the Japanese

telecommunications market, SoftBank Corp. has identified users of smartphones, feature phones, tablets, and mobile
data communication devices, which are all sources of revenue and profit, as the “main subscribers” of its mobile
communications service and concentrates its efforts on acquiring and maintaining such users.

Among these, thestrongest emphasis is on strengthening the acquisition and the reduction of the churn rate of smartphone subscribers,
and SoftBank Corp. is therefore focusing on increasing sales of Home Bundle Discount Hikari Set, which offers a
discount on the communication charges of mobile communications services to customers subscribing to both mobile
communications services and broadband services such as SoftBank Hikari.
Moreover, SoftBank Corp. is working to develop new peripheral services such as video streaming, electricity
provision, and robotics, and to leverage the effects of merging its four domestic telecommunications subsidiaries in
April 2015 to achieve further operational efficiency and cost reductions.

(Breakdown of Net Sales)(Millions of yen)

Fiscal Year Ended
March 31, 2015
Total net sales

2
3

Fiscal Year Ended
March 31, 2016

ChangeChange %3,019,393

3,144,650

125,257

4.1%

Telecom service revenue

2,329,161

2,405,047

75,886

3.3%

Mobile communications

1,922,640

1,953,363

30,723

1.6%

Telecom2

1,729,423

1,731,989

2,566

0.1%

Service3

193,217

221,374

28,157

14.6%

Broadband

129,762

177,00947,247

36.4%

Fixed-line
telecommunications

276,759

274,675(2,084)(0.8%)

Product and other sales

690,232

739,60349,371

7.2%

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

10SoftBank Group Corp. Consolidated Financial Report
For the fiscal year ended March 31, 2016

< Overview of Operations >The segment’s net sales totaled ¥3,144,650 million, an increase of ¥125,257 million (4.1%) year on year.

Of this,telecom service revenue totaled ¥2,405,047 million, an increase of ¥75,886 million (3.3%), while product and othersales was ¥739,603 million, an increase of ¥49,371 million (7.2%).
The increase in telecom service revenue reflected an increase in broadband revenue following the startup of the
SoftBank Hikari fiber-optic service (launched in March 2015), as well as an increase in mobile communications revenue.
The increase in product and other sales mainly reflected an increase in sales of smartphones and terminals for broadband
services on customer premises.

Smartphone sales increased as the impact of a rise in the unit prices outweighed adecline in the number of mobile devices shipped.4
Mobile communications revenue increased by ¥30,723 million (1.6%) year on year to ¥1,953,363 million, mainlyreflecting an increase in service revenue primarily associated with an expansion in content services, which supplemented
a slight increase in telecom revenue.

Operating expenses increased by ¥98,637 million (4.2%) year on year to ¥2,456,261 million. The main factors
affecting operating expenses are as follows:・ Cost of products increased by ¥10,488 million (1.8%) year on year. This mainly reflected an increase in thenumber of devices shipped for smartphones, which have a high procurement cost, despite an improvement invaluation loss on mobile device inventories.
・ Sales commission fees increased by ¥39,309 million (10.6%) year on year. This mainly reflected a year-on-yearincrease in the average cost of sales commission fees for smartphones associated with intensified competition forcustomer acquisition under the Mobile Number Portability (MNP) system.
・ Sales promotion expenses increased by ¥26,640 million (30.6%) year on year.

This mainly reflected stronger

sales expansion of the SoftBank Hikari fiber-optic service.
・ Telecommunications network charges increased by ¥28,479 million (15.0%) year on year. This mainly reflected
an increase in fiber-optic connection charges for the SoftBank Hikari fiber-optic service that was launched in March2015. Another factor was access charges paid to other operators as a result of an increase in the amount of calls
made by SoftBank Corp. mobile communications service subscribers to subscribers of other operators. This was
associated with an increase in subscribers to the Smartphone Flat-rate mobile communications service price plan,
which provides unlimited voice calls at a flat rate.
・ Outsourcing expenses decreased by ¥26,623 million (18.1%) year on year. This mainly reflected efficiency gains
in outsourced operations related to customer service and network maintenance following the absorption of
SoftBank BB Corp., SoftBank Telecom Corp., and Ymobile Corporation by SoftBank Corp. (formerly SoftBank
Mobile Corp.) in April 2015.
・ Depreciation and amortization increased by ¥21,220 million (4.7%) year on year to ¥474,948 million.
No other operating income or loss was recognized in the fiscal year.

In the previous fiscal year, the Company

recognized provision for unprofitable contract of ¥21,271 million in relation to fixed-line telecommunications services.

4

The number of devices shipped (sold) to dealers.
SoftBank ONLINE SHOP.

Includes the number of devices sold to customers at stores operated by SoftBank Corp. and the11SoftBank Group Corp. Consolidated Financial Report
For the fiscal year ended March 31, 2016

As a result of the above, segment income increased by ¥47,891 million (7.5%) year on year to ¥688,389 million.
Adjusted EBITDA, which is obtained by adding depreciation and amortization to and excluding other operating loss
from segment income, increased by ¥47,840 million (4.3%) year on year to ¥1,163,337 million.

< Overview of Business Operations >Among the segment’s businesses, the following describes an overview of the business operations of the mobile
communications and broadband services of SoftBank Corp. For definitions and calculation methods of subscribers,
ARPU, and churn rate at SoftBank Corp., please refer to page 26 “(a) SoftBank Corp.” under “(Reference 2: Definitions
and Calculation Methods of Principal Operational Data).”< Changes in the Presentation Method and Definitions of Principal Operational Data >The presentation method and definitions for the principal operational data of mobile communications services havebeen changed from the first quarter. The main changes are as follows:
・ The total number of subscribers for SoftBank and Y!mobile services are categorized and presented as main subscribers,
communication modules, and PHS.

Main subscribers include the service contracts that are the main focus ofmanagement strategy; smartphones, feature phones, tablets, and mobile data communication devices.
・ ARPU, number of units sold, and churn rates are presented based on data of main subscribers.
・ ARPU for main subscribers is separately presented as “telecom ARPU” and “service ARPU.” Telecom ARPU iscalculated by dividing data-related revenue, basic monthly charges, and voice-related revenues by the number ofactive subscribers. Service ARPU is calculated by dividing device warrantee service revenue, advertising revenue,
and content-related revenues, etc., by the number of active subscribers.
・ The number of subscribers, ARPU, number of units sold and churn rates for the fiscal year ended March 31, 2015 arealso presented based on data of main subscribers.
Please refer to page 24 “< Changes in the Presentation Method and Definitions of Principal Operational Data >” under“(Reference 1: Principal Operational Data) (a) SoftBank Corp.” for details of the changes.

i. Mobile Communications Service
・ Subscribers (Main Subscribers)
The cumulative number of main subscribers of mobile communications services at the end of the fiscal year stood at
32,038,000, for 488,000 net additions from the previous fiscal year-end.

Smartphones and tablets marked net

additions in the fiscal year, which was partially offset by feature phone net losses.
(Thousands)
As of March 31, 2015

Cumulative subscribers

31,550

As of March 31, 2016

32,038Change488

・Home Bundle Discount Hikari Set Applications
The Home Bundle Discount Hikari Set (previously referred to as “Smartphone & Internet Bundle Discount”) offers
a discount on the communication charges of mobile communications services to customers subscribing to both mobile12

SoftBank Group Corp. Consolidated Financial Report
For the fiscal year ended March 31, 2016

communications services (applicable for smartphones, feature phones, and tablets among main subscribers) andbroadband services such as SoftBank Hikari.

The cumulative number of applications 5 of the Home Bundle

Discount Hikari Set at the end of the fiscal year stood at 2,969,000 for mobile communications services, and1,438,000 for broadband services.6

・ARPU (Main Subscribers)
Total ARPU for main subscribers of mobile communications services for the fiscal year was ¥4,700, an increase of¥30 year on year.
Of this, telecom ARPU declined by ¥40 to ¥4,150. This mainly reflected a decline in voice-related revenues
accompanying the higher penetration of the Smartphone Flat-rate mobile communications service price plan, which
provides unlimited voice calls at a flat rate. This was partially offset by an increase in the compositional ratio ofsmartphone subscribers within the cumulative number of main subscribers. An additional factor reducing telecom
ARPU was an increase in the cumulative number of applications of Home Bundle Discount Hikari Set, which
increased the amount of discounts on telecom ARPU.

SoftBank Corp. expects the negative impact from the

Smartphone Flat-rate mobile communications service price plan (the year-on-year difference of the impact amount)in the fiscal year ending March 2017 to be less than in the fiscal year. However, the negative impact from Home
Bundle Discount Hikari Set is expected to increase in line with growth in the cumulative number of applications.
Service ARPU increased by ¥50 year on year to ¥540. This reflected the steady increase of subscribers to content
services such as Daily Value Pack7 and App Pass.8(Yen / Month)Fiscal Year Ended
March 31, 2015
Total ARPU

Fiscal Year Ended
March 31, 2016

Change

4,670

4,700

30

Telecom ARPU

4,190

4,150

(40)

Service ARPU

490

540

50

5

Includes the Fiber-optic Discount applied to mobile communication services under Y!mobile brand
The cumulative number of applications of the Home Bundle Discount Hikari Set includes that of fiber-optic lines as long as the discount is applied tothe associated mobile communications services, even if physical connection of the fiber-optic line is not complete at the central office of NTT East or
NTT West.
7
A service enabling subscribers to purchase food and movie tickets, among other items, at discounts
8
A service enabling subscribers to use a select range of popular apps
6

13

SoftBank Group Corp. Consolidated Financial Report
For the fiscal year ended March 31, 2016

・Number of Units Sold (Main Subscribers)
The number of units sold9 for mobile devices of main subscribers for the period decreased by 1,024,000 year on year
to 10,662,000. This mainly reflected year-on-year decreases in the number of units sold for both smartphones andfeature phones.

For smartphones, the number of new subscriptions marked a year-on-year increase, despite anoffsetting decrease in the number of device upgrades.
(Thousands)
Fiscal Year Ended
March 31, 2015
Units soldFiscal Year Ended
March 31, 2016

Change11,686

10,662(1,024)

New subscriptions

5,756

5,441

(315)

Device upgrades

5,930

5,222

(708)

・Churn Rate (Main Subscribers)
The churn rate for main subscribers of mobile communications services for the fiscal year was 1.35%, an
improvement of 0.01 of a percentage point year on year. This mainly reflected an improvement in the churn rate
for tablets and feature phones, despite a deterioration in the churn rate for smartphones associated with intensifiedcompetition to acquire customers under the MNP system.

The churn rate for main subscribers of mobile

communications services for the fourth quarter improved by 0.08 of a percentage point year on year.
To further improve the churn rate for main subscribers of mobile communications services over the medium term,
SoftBank Corp. is now executing initiatives to improve the quality of customer service at sales channels such as
SoftBank Stores, as well as expanding bundle discounts such as the Home Bundle Discount Hikari Set and Home
Bundle Discount Denki Set,10 which was launched in April 2016.

Fiscal Year Ended
March 31, 2015
Churn rate

Fiscal Year Ended
March 31, 2016

1.36%

1.35%

Change0.01 pp improvement

ii. Broadband Service
The cumulative number of subscribers for broadband services at the end of the fiscal year stood at 5,079,000, a 722,000
increase from the previous fiscal year-end. This mainly reflected an increase of 1,598,00011 subscribers to SoftBank
Hikari, while subscribers for Yahoo! BB hikari with FLET’S12 decreased by 664,000 and subscribers for Yahoo! BB
ADSL13 decreased by 212,000.

9The total number of new subscriptions and device upgrades. New subscriptions where customers switch between SoftBank and Y!mobile using MNP
are included in the number of device upgrades.
10
A service that offers discounts on mobile communications service or broadband service charges for customers that subscribe to both the electric
power service SoftBank Denki and a mobile communications service or broadband service such as SoftBank Hikari
11
Includes the number of subscribers and ARPU of SoftBank Air, the high-speed wireless internet service provided through the Air terminal
12
An Internet service provider (ISP) service offered as a package with NTT East and NTT West’s FLET’S Hikari Series fiber-optic connection
13
A service combining an ADSL connection service and an ISP service

14

SoftBank Group Corp. Consolidated Financial Report
For the fiscal year ended March 31, 2016

Starting with the launch of a fiber-optic service SoftBank Hikari in March 2015, SoftBank Corp. shifted its main focusof broadband services from Yahoo! BB hikari with FLET’S to SoftBank Hikari and is now actively working to acquire
SoftBank Hikari customers through sales channels nationwide such as electronics retail stores and SoftBank Stores.
Since SoftBank Hikari ARPU11 is higher than that of Yahoo! BB hikari with FLET’S and Yahoo! BB ADSL, SoftBank
Corp. expects a steady increase in telecom service revenue from broadband services in step with the increase insubscribers to SoftBank Hikari.

For the fourth quarter, SoftBank Hikari ARPU was ¥4,940, Yahoo! BB hikari with

FLET’S ARPU was ¥1,820, and Yahoo! BB ADSL ARPU was ¥2,590.
(Thousands)
As of March 31, 2015

As of March 31, 2016

ChangeCumulative subscribers

4,357

5,079

722

SoftBank Hikari11

119

1,717

1,598

Yahoo! BB hikariwith FLET’S

2,672

2,008

(664)

Yahoo! BB ADSL

1,566

1,354

(212)

(b) Sprint Segment(Millions of yen)

Fiscal Year Ended
March 31, 2015
Net sales

Fiscal Year Ended
March 31, 2016

ChangeChange %3,800,021

3,871,647

71,626

1.9%

Segment income

66,85961,485(5,374)(8.0%)

Depreciation andamortization

579,152

842,110

262,958

45.4%

7,029

79,66872,639-653,040

983,263

330,223

50.6%

Other operating loss
(Note 8)Adjusted EBITDA
Reference: U.S. dollar based results (IFRSs)

Net sales(Millions of U.S. dollars)

34,53232,180(2,352)(6.8%)

Segment income

643

506

137

(21.3%)

Adjusted EBITDA

5,960

8,172

2,212

37.1%

Notes:
7. The amount disclosed as EBITDA through to the third quarter is now presented as adjusted EBITDA from the fourth quarter.
8. ¥37,032 million ($312 million) of loss on “disposal of property, plant and equipment” recognized as “other operating loss” in the
consolidated statements of income for the fiscal year is not included in “other operating loss” in the Sprint segment. The details
are described in page 80 “14. Other operating loss” under “5. Consolidated Financial Statements (6) Notes to Consolidated
Financial Statements.”

15

SoftBank Group Corp. Consolidated Financial Report
For the fiscal year ended March 31, 2016

< Overview of Operations >The segment’s net sales increased by ¥71,626 million (1.9%) year on year to ¥3,871,647 million. The main factor
behind the overall increase was the yen’s year-on-year depreciation against the U.S. dollar, although net sales declinedin U.S. dollar terms by $2,352 million (6.8%) year on year. The decrease in U.S. dollar net sales mainly reflected adecrease in telecom service revenue due to customer shifts to lower rate plans offered in conjunction with device
financing options such as leases and installment sales. Device revenue increased slightly, mainly reflecting an increasein lease revenue associated with an increase in sales under the leasing program.

This outweighed a decrease in revenue,

which arose from factors such as a decrease in sales volume at Sprint due to increased handset sales handled through a
supply chain where Brightstar purchases the mobile devices from vendors and sells them to Sprint dealers, as well as ahigher compositional ratio of devices sold under leasing program.

Operating expenses increased by ¥77,000 million (2.1%) year on year to ¥3,810,162 million.

This mainly reflected

the yen’s year-on-year depreciation against the U.S. dollar, despite a decrease in operating expenses in U.S. dollar terms
of $2,215 million (6.5%).
The sharp decrease in operating expenses in U.S. dollar terms reflected company-wide cost reduction efforts.

Thesestarted with setting an operating expense reduction target of $1.5 billion for the fiscal year and implementing various
measures. As a result, the cost of services and selling, general and administrative expenses (excluding depreciation
and amortization) in the fiscal year were lower than the previous fiscal year by approximately $1.3 billion in total. In
addition, Sprint also implemented sweeping reforms of business activities and began to transform its cost structure
further during the fiscal year.

Sprint expects to achieve a run rate14 operating expense reduction of $2 billion or more

exiting the fiscal year ending March 2017. Sprint has already realized approximately $1 billion of these annualizedsavings based on the initiatives achieved in the fourth quarter. For further information about cost reduction initiatives,
please refer to page 19 “i. Cost Reduction” under “< Sprint’s Initiatives >.”The main factors affecting operating expenses (excluding depreciation and amortization) in U.S. dollar terms in thefiscal year are as follows:・ Cost of products decreased. This was mainly because the compositional ratio of postpaid units leased under theleasing program, which started in September 2014, reached 51% of the number of Sprint platform15 postpaid units
sold (excluding wholesale and affiliate) in the fiscal year, compared to 17% in the previous fiscal year. This factor
outweighed a year-on-year decline in the number of Sprint platform postpaid units sold. For the conventional salesof mobile devices, including the installment billing method, sales of devices and the cost of products are recognizedat the point of sale. However, under the leasing program, lease revenue is recognized throughout the period of thelease (generally 24 months), along with depreciation expenses for the leased devices recorded as assets.
・ Selling, general and administrative expenses (excluding depreciation and amortization) decreased.

This mainlyreflected a decrease in provision for doubtful accounts accompanying a decrease in payment delinquency due toan increase in the compositional ratio of prime customers.

It also reflected further reductions in personnel andadvertising expenses associated with cost reduction initiatives.

14
15

Estimated future figures based on the assumption that current trends continue
Sprint-operated CDMA and LTE networks

16

SoftBank Group Corp. Consolidated Financial Report
For the fiscal year ended March 31, 2016

Depreciation and amortization increased by ¥262,958 million (45.4%) year on year to ¥842,110 million.

This

mainly reflected the increase in leased devices.
Other operating loss was ¥79,668 million, a deterioration of ¥72,639 million from the previous fiscal year. Other
operating loss incurred in the fiscal year was mainly comprised of the following:
Severance costs associated reduction in work force
Legal reserves
Impairment loss on non-current assets¥26,079 million¥23,437 million¥19,881 million

Please refer to page 80 “14. Other operating loss” under “5. Consolidated Financial Statements (6) Notes toConsolidated Financial Statements” for details.
As a result of the above, segment income decreased by ¥5,374 million (8.0%) year on year to ¥61,485 million.
Adjusted EBITDA, which is obtained by adding depreciation and amortization to and excluding other operating loss
from segment income, increased by ¥330,223 million (50.6%) year on year to ¥983,263 million.
(Reference: Sale-Leaseback Transaction for Leased Devices)As part of its fund procurement initiatives, Sprint entered into agreements (“MLS Handset Sale-Leaseback”) with Mobile
Leasing Solutions, LLC (“MLS”), SoftBank Group Corp.’s equity method company, to sell and lease back certain leased
devices in November 2015. Certain leased devices were sold to MLS in exchange for the total proceeds of $1.3 billion.
MLS leases back each device to Sprint in exchange for monthly rental payments to be made by Sprint to MLS.
MLS Handset Sale-Leaseback causes a negative impact on adjusted EBITDA. In the ordinary course of business,leased devices are recorded as property, plant and equipment on the balance sheet and depreciated as shown as (B) in
the following table.

By contrast, those leased devices sold under MLS Handset Sale-Leaseback are derecognized(off-balance sheet) and are therefore no longer depreciated by Sprint. Therefore, cost of the devices sold to MLS will
no longer be recorded as depreciation expense, but rather recognized as rent expense within cost of products (as shownas (C) in the following table) during the leaseback periods.

Because of this, there is a negative impact on adjusted

EBITDA. In the fiscal year, $277 million (approximately ¥32.6 billion) in rental payments was recorded for about afour-month period.
For details of MLS Handset Sale-Leaseback, please refer to page 73 “7. Handset sale-leaseback” under “5.
Consolidated Financial Statements (6) Notes to Consolidated Financial Statements.”

Leased Devices

Leased Devices Sold Under
MLS Handset Sale-Leaseback

On-balance sheet(property, plant and equipment)

Off-balance sheet(A) Customer lease revenues(A) Customer lease revenues-(C) Rental payments to MLS(B) Depreciation of leased devices-

Segment income(A) - (B)(A) - (C)

Adjusted EBITDA(A) – (B) + (B)(A) - (C)Consolidated statements offinancial position
Consolidated statements of income
Net sales
Cost of products
Depreciation

17

SoftBank Group Corp. Consolidated Financial Report
For the fiscal year ended March 31, 2016

< Overview of Business Operations >The following is an overview of the business operations related to the Sprint platform among the segment’s businesses.
For definitions and calculation methods of ABPU/ARPU and churn rate of the Sprint platform, see page 27 “(b) Sprint
Platform” under “(Reference 2: Definitions and Calculation Methods of Principal Operational Data).”・Number of Subscribers (Sprint Platform)
The Sprint platform had 58,806,000 subscribers as of the end of the fiscal year, a net addition of 2,669,000 from theprevious fiscal year-end.

This represented postpaid net additions of 1,245,000 and wholesale and affiliate net

additions of 2,733,000 in the fiscal year, outweighing prepaid net losses of 1,309,000.
The postpaid net additions were driven by continued tablet net additions, as well as phone (smartphone and featurephone) net additions of 438,000. The wholesale and affiliate net additions mainly reflected growth in the number ofcommunication modules. On the contrary, prepaid marked net losses due to intensified competition in the prepaid
market.
(Thousands)

As of March 31, 2015
Sprint platform cumulative
subscribers

As of March 31, 2016

Change56,13758,806

2,669

29,70630,951

1,245

24,87825,316438

Prepaid

15,706

14,397(1,309)Wholesale & affiliate

10,725

13,4582,733

Postpaid(incl.) Phone

・ABPU (Sprint Platform Postpaid Phone)
Sprint platform postpaid phone ABPU for the fourth quarter increased by $2.34 year on year to $71.53.

Thisreflected the increase in average equipment billings per user offsetting the ARPU decrease.
Out of this, ARPU declined by $4.31 year on year to $59.45.

This mainly reflected an increase in thecompositional ratio of customers on lower rate plans offered in conjunction with device financing programs such asleases and installment sales.
On the other hand, average equipment billings per user per month increased by $6.65 year on year to $12.08.
This reflected the increased adoption of device financing programs.
(U.S. dollar / month)Three-month Period
Ended March 31, 2015

Three-month Period
Ended March 31, 2016

ChangePostpaid phone ABPU

69.19

71.53

2.34

ARPU
Average equipment
billings per user

63.76

59.45

(4.31)

5.43

12.08

6.65

・Churn Rate (Sprint Platform)
The Sprint platform postpaid churn rate for the fourth quarter improved by 0.12 of a percentage point year on year to
1.72%.

This mainly reflected network performance improvements, as well as a decrease in forced deactivations

18

SoftBank Group Corp. Consolidated Financial Report
For the fiscal year ended March 31, 2016

due to payment delinquency following focused efforts to acquire prime customers beginning in August 2014. These
factors outweighed the impact of intensified competition in the market.

Three-month Period
Ended March 31, 2015
Postpaid churn rate

Three-month Period
Ended March 31, 2016

1.84%

1.72%

Change0.12 pp improvement< Sprint’s Initiatives >Sprint aims to return to a growth trajectory by turning around the ongoing declining trend in net sales while promoting
large-scale cost reductions and liquidity improvement.

As for net sales, Sprint is focusing on increasing the numberof postpaid phone subscribers, which are the largest source of revenue and profit.

Signs of a turnaround have begun

to appear with net subscriber additions for three consecutive quarters from the three-month period ended September 30,
2015 (the “second quarter”). Meanwhile, in cost reduction and liquidity improvement, Sprint is making solid progresson multiple initiatives as described below. While this section is prepared based on U.S. GAAP that Sprint adopts, there
is no significant difference to be made in IFRS, except a possible difference in the timing of recognition.

i. Cost Reduction
Sprint set a target of reducing operating expenses by $1.5 billion in the fiscal year and reviewed the budget fromscratch across all areas. As a result of various initiatives introduced, Sprint achieved the target on cost reduction
and reduced cost of services and selling, general and administrative expenses for the fiscal year by approximately$1.3 billion year on year. The result was obtained even after reinvesting a large portion of the reduced operating
expenses in strategic initiatives, such as an expansion of sales channels, to achieve long-term growth.
Sprint also implemented a plan to transform the way it does business and significantly lower its cost structure (the“Transformation”) during the fiscal year.

Through the Transformation, Sprint expects to achieve a run rate 16

operating expense reduction of $2 billion or more exiting the fiscal year ending March 2017, with the cost reduction
effect projected to continue in the following fiscal years. The targeted reduction amount of $2 billion is expected
to include reduction across all areas of the business, with the majority being realized in selling, general andadministrative expenses. Note 9
During the fourth quarter, Sprint has already realized approximately $1 billion of these annualized savings basedon the $250 million related to these initiatives achieved in the fourth quarter.
In conjunction with the Transformation, Sprint expects to incur operating costs and capex costs totaling
approximately $1 billion (the “Transformation Program Cost”). The Transformation Program Cost, excluding theapproximate $200 million of severance costs associated with reduction in work force recorded for the fiscal year, is
expected to be incurred in the fiscal year ending March 2017 and 2018. Unlike the operating expense reduction in
the fiscal year, of which a large portion was reinvested, the cost reduction through the Transformation, with the
exception of the Transformation Program Cost, is expected to contribute to profit.
Note:
9. Sales, marketing, and customer care-related expenses, etc.
16

Estimated future figures based on the assumption that current trends continue

19

SoftBank Group Corp. Consolidated Financial Report
For the fiscal year ended March 31, 2016

ii. Liquidity Improvement
In addition to cash flow improvement through the aforementioned cost reduction initiatives, Sprint is working todiversify its financing sources to improve its financial flexibility.
During the fiscal year, Sprint took multiple steps to improve its liquidity, including executing MLS Handset SaleLeaseback under which Sprint procured $1.1 billion. For details, please refer to page 73 “7. Handset sale-leaseback”
under “5. Consolidated Financial Statements (6) Notes to Consolidated Financial Statements.”
As a result, Sprint’s liquidity, including cash and cash equivalents: short-term investments: and undrawn borrowing
capacity under the revolving bank credit facility:17 and undrawn availability under the receivables facility, totaled$5.7 billion at the end of the fiscal year.
Sprint also plans to carry out the following actions in the fiscal year ending March 2017:
・ Sale-leaseback of leased devices (to be executed quarterly) $3 - $4 billion in total
As of April 2016, Sprint had concluded an approximately $1.1 billion fund procurement as a second transaction
agreement.

Cash infusion is expected to be completed in May 2016.

・ Network-related financing

Approximately $2.2 billion

As of April 2016, Sprint had received approximately $2.2 billion utilizing its certain existing network assets.
・ Bridge financing facility$2 billion

As of April 2016, Sprint had entered into an 18-month bridge financing facility for $2 billion.
In addition to the above, Sprint is pursuing to raise funds utilizing a small portion of its spectrum portfolio.

The amount of the fund Sprint will be able to raise as a result of these actions conducted through to the end of
April 2016 and Sprint’s $5.7 billion of liquidity at the end of the fiscal year comes to a total of approximately $11
billion. Sprint also has an additional $1.2 billion of availability under vendor financing18 agreements that can beused toward the purchase of 2.5 GHz network equipment.

These sources of liquidity are expected to provide theresources for Sprint to execute its business plan and to fully fund the repayment of the $3.3 billion of note maturities
that come due in the fiscal year ending March 2017.

17
18

A form of loan that allows borrowing within a specified period and maximum amount
Secured equipment credit facilities to finance network-related purchases from vendors guaranteed by the export credit agencies

20SoftBank Group Corp. Consolidated Financial Report
For the fiscal year ended March 31, 2016(c) Yahoo Japan Segment(Millions of yen)

Fiscal Year Ended
March 31, 2015

Fiscal Year Ended
March 31, 2016

ChangeChange %Net sales

427,321652,031

224,71052.6%

Segment income

193,529

222,787

29,25815.1%

Depreciation andamortization

18,36432,695

14,331

78.0%-(59,441)(59,441)-

211,893

196,041(15,852)(7.5%)

Gain from remeasurement
relating to businesscombination
Adjusted EBITDA

Note:
10. The amount disclosed as EBITDA through to the third quarter is presented as adjusted EBITDA from the fourth quarter.

< Overview of Operations >The segment’s net sales increased by ¥224,710 million (52.6%) year on year to ¥652,031 million.

This mainlyreflected the consolidation of ASKUL Corporation in August 2015, as well as revenue growth in the advertisingbusiness driven by an increase in sales of display advertising.19
Segment income increased by ¥29,258 million (15.1%) year on year to ¥222,787 million. This mainly reflected
gain from remeasurement relating to business combination of ¥59,441 million (not recorded in the previous fiscal year)
due to the remeasurement at fair value of existing equity interest at the time of the consolidation of ASKUL Corporationin August 2015. The increase in income was partially offset by an increase in operating expenses such as sales
promotion expenses for Yahoo! Shopping and Yahoo! JAPAN Card, as well as depreciation and amortization.
Depreciation and amortization increased by ¥14,331 million (78.0%) year on year to ¥32,695 million. This mainlyreflected continuing capital expenditure related to big data and so forth.
Adjusted EBITDA, which is obtained by adding depreciation and amortization to and excluding gain fromremeasurement relating to business combination from segment income decreased by ¥15,852 million (7.5%) year on
year to ¥196,041 million.

This mainly reflected the aforementioned year-on-year increase in sales promotion,

advertisement and other expenses by ¥28.2 billion, which was intended to strengthen the business foundation for the
future. Yahoo Japan Corporation will be taking such actions to drive expansion in the e-commerce and financial andpayment service business, and accelerate revenue and profit growth over the medium- to long-term.

19

Display advertising is graphical, Flash®, and video advertising that appears on a certain defined area and includes premium advertisements such as
Brand Panel shown on Yahoo! JAPAN’s top page and Yahoo! Display Ad Network, which shows advertisements most suitable to the user based on
the content the user is viewing and their interests, attributes, and geographical location.

21

SoftBank Group Corp. Consolidated Financial Report
For the fiscal year ended March 31, 2016(d) Distribution Segment(Millions of yen)

Fiscal Year Ended
March 31, 2015
Net sales
Segment income (loss)
Depreciation andamortization
Other operating(income) loss
Adjusted EBITDA

Fiscal Year Ended
March 31, 2016

ChangeChange %1,225,116

1,420,416

195,300

15.9%

4,952

(1,284)(6,236)-

10,248

10,268

20

0.2%

(607)

16,466

17,073-

14,59325,45010,857

74.4%

Note:
11. The amount disclosed as EBITDA through to the third quarter is presented as adjusted EBITDA from the fourth quarter.

< Overview of the Segment >The Distribution segment comprises subsidiaries such as Brightstar and SoftBank Commerce & Service Corp.
Brightstar became a subsidiary of the Company on January 30, 2014. Its operations include a wholesaling businesspurchasing mobile devices from manufacturers and distributing them to telecommunications operators and retailers incountries around the world.

SoftBank Commerce & Service Corp.’s operations include the sale of mobile device

accessories and IT-related software and hardware in Japan.
< Overview of Operations >The segment’s net sales increased by ¥195,300 million (15.9%) year on year to ¥1,420,416 million. This mainlyreflected an increase in sales of mobile devices for Sprint, as well as the contribution of the yen’s year-on-year
depreciation against the U.S. dollar.

These increases outweighed a decrease in sales associated with a contraction in

the mobile device OEM business being conducted in Argentina (contracted manufacturing for mobile device
manufacturers) and the termination of a mobile device wholesale supply contract with Verizon Communications Inc.
Since September 2014, the supply chain of mobile devices at Sprint has gradually been shifted from the conventional
way where Sprint directly sells to dealers, to one where Brightstar purchases mobile devices from Sprint and device
vendors and sells them to Sprint dealers, to pursue appropriate levels of inventory and higher distribution efficiency.
Segment loss was ¥1,284 million, deteriorating by ¥6,236 million year on year.

This mainly reflected the recordingof an impairment loss of ¥13,633 million related to property, plant and equipment and intangible assets in Latin America
as other operating loss. The loss was partially offset by the profit contribution of an increase in service revenue from
Sprint for providing distribution and inventory control services associated with the sale of mobile devices for Sprint.
For the details of other operating income and loss, please refer to page 80 “14. Other operating loss” under “5.
Consolidated Financial Statements (6) Notes to Consolidated Financial Statements.”
Adjusted EBITDA, which is obtained by adding depreciation and amortization to and excluding other operating
income or loss from segment income or loss, increased by ¥10,857 million (74.4%) year on year to ¥25,450 million.

22

SoftBank Group Corp. Consolidated Financial Report
For the fiscal year ended March 31, 2016

(Reference 1: Principal Operational Data)(a) SoftBank Corp.
i. Mobile Communications Service
Fiscal Year Ended March 2015

Fiscal Year Ended March 2016

Three-month Period Ended
June 30, Sept. 30, Dec. 31,
2014
2014
2014

Three-month Period Ended
June 30,
Sept. 30,
Dec. 31,
2015
2015
2015

Q1

Q2

Q3

Mar. 31,2015
Q4

Full Year

Q1

Q2

Q3

Mar. 31,
2016
Full
Year

Q4

Main subscribers20
Cumulative subscribers’000

30,86831,01831,17431,55031,57031,611

31,686

Net additions
Total ARPU20
Telecom ARPU20
Service ARPU20

’000

80

150

157

375

762

21

41

74

352

488

4,700
4,220
480

4,710
4,230
480

4,710
4,230
490

4,580
4,080
500

4,670
4,190
490

4,660
4,140
520

4,720
4,190
540

4,720
4,170
560

4,680
4,110
560

4,700
4,150
540

¥/ month¥/ month¥/ month

32,03820%/ month

1.19

1.30

1.38

1.57

1.36

1.24

1.28

1.41

1.49

1.35

21

’000

1,994
1,182
812

2,864
1,365
1,499

3,589
1,388
2,201

3,240
1,821
1,419

11,686
5,756
5,930

2,198
1,169
1,029

2,470
1,212
1,258

3,015
1,356
1,659

2,979
1,703
1,276

10,662
5,441
5,222

639
326

1,315
660

2,085
1,038

2,969
1,438

Churn rate

Units soldNew subscriptions
Device upgrades

’000
’000

Cumulative applications for the Home Bundle Discount Hikari Set22
Mobilecommunications
service
Broadband service23

’000

’000

Overall mobile communications
Cumulative subscribers’000

Main subscribers20
Communication
modules20

’000
’000

PHS

’000

44,56430,86844,90031,01844,887
31,17444,88631,55044,417
31,57044,11731,611

43,74831,686

43,60532,038

8,426

8,723

8,786

8,610

8,317

8,149

7,891

7,570

5,271

5,160

4,927

4,726

4,530

4,356

4,171

3,998

4,242

4,243

4,256

4,357
119

4,452
341

4,602
715

4,847
1,218

5,079
1,717

2,531
1,711

2,583
1,660

2,638
1,618

2,672
1,566

2,610
1,501

2,435
1,452

2,225
1,404

2,008
1,354

3,100

-

4,270

4,980

5,060

¥/ month

1,770

1,830

1,840

1,830

1,820

1,830

1,860

1,830

4,940
1,820

4,930
1,840

¥/ month

2,870

2,830

2,780

2,740

2,810

2,680

2,660

2,630

2,590

2,640

ii. Broadband Service
Cumulative
subscribers20
SoftBank Hikari24
Yahoo! BB hikari with
FLET’S25
Yahoo! BB ADSL26
ARPU20
SoftBank Hikari24
Yahoo! BB hikari with
FLET’S25
Yahoo! BB ADSL26

’000
’000
’000
’000

¥/ month

Note:
12. The presentation method and definitions for the principal operational data of SoftBank Corp.’s mobile communications services havebeen changed in the first and the third quarters of the fiscal year ended March 2016. Please refer to page 24 “< Changes in the
Presentation Method and Definitions of Principal Operational Data >” for details. Data for the fiscal year ended March 2015 andfor the first and second quarters of the fiscal year ended March 2016 are also presented based on the changes applied in the third
quarter.

20

For definitions and calculation methods of subscribers, churn rate, and ARPU at SoftBank Corp., see page 26 “(a) SoftBank Corp.” under “(Reference
2: Definitions and Calculation Methods of Principal Operational Data).”
21
The total number of new subscriptions and device upgrades. New subscriptions where customers switch between SoftBank and Y!mobile using the
MNP system are included in the number of device upgrades.
22
A discount on the communication charges of mobile communications services to customers subscribing to both mobile communications services(applicable for smartphones, feature phones, and tablets among main subscribers) and broadband services such as SoftBank Hikari. Includes
subscribers of the Fiber-optic Discount applied to Y!mobile brand mobile communications services
23
The cumulative number of applications of the Home Bundle Discount Hikari Set includes that of fiber-optic lines as long as the discount is applied tothe associated mobile communications services, even if physical connection of the fiber-optic line is not complete at the central office of NTT East or
NTT West.
24
A fiber-optic service using the wholesale fiber-optic connection of NTT East and NTT West. Includes the number of subscribers and ARPU of
SoftBank Air.
25
An ISP service offered as a package with NTT East and NTT West’s FLET’S Hikari Series fiber-optic connection
26
A service combining an ADSL connection and an ISP service

23

SoftBank Group Corp. Consolidated Financial Report
For the fiscal year ended March 31, 2016

< Changes in the Presentation Method and Definitions of Principal Operational Data >SoftBank Mobile Corp., the company that operates domestic telecommunications businesses, absorbed SoftBank BB Corp.,
SoftBank Telecom Corp., and Ymobile Corporation on April 1, 2015 and was renamed SoftBank Corp. on July 1, 2015.
In line with this, the presentation method and definitions of principal operational data of SoftBank Corp.’s mobile
communications services were also changed from the first quarter of the fiscal year ended March 2016.
The main changes are as follows. The number of subscribers are categorized as “main subscribers,” which are the main
focus in terms of management strategy, with the remaining number of subscribers classified under “communication
modules” and “PHS.” In addition, some services have been removed from the scope of inclusion for subscriber numbers.
i. Presentation Method
Number of subscribers
Before the change: respective numbers of subscribers for the former SoftBank Mobile Corp. and former Ymobile
Corporation were presented
After the change: the number of subscribers at SoftBank Corp. is presented using the following categories
Category
Main subscribers
Communication
modulesPHS

Details
Smartphones,Note 13 feature phones, tablets, mobile data communication devices,Note 14
others Note 15
Communication modules, Note 16 Mimamori Phone, prepaid mobile phones, others
PHS

Notes:
13. Smartphones to which the Smartphone Family Discount is applied are included under communication modules. The
Smartphone Family Discount is a promotion offering discounts to the family members of upgrading existing customers when
they use the old handset and make a new subscription.
14. Mobile data communication devices to which the Data Card 2-Year Special Discount is applied are included undercommunication modules. The Data Card 2-Year Special Discount is a price plan based on usage of traffic with a free basic
flat rate. It is provided to customers using a data card with a contract period of two years or more.
15. From the third quarter, the category for SIM cards (IC cards that have telephone number and other subscriber information
recorded on them) sold with tablets and other devices has been changed from “communication modules” to “mainsubscribers” (the cumulative number of reclassified subscribers was 16,000 as of December 31, 2015). Data for the fiscal
year ended March 2015 and for the first and second quarters of the fiscal year ended March 2016 has been revised in line withthis change.
16. Communication modules that use PHS networks are included under PHS.

ARPU, number of units sold, and churn rate
Before the change: ARPU was calculated based on all the subscribers and revenues of the former SoftBank Mobile
Corp. excluding those of communication modules. The number of units sold and churn rates
were calculated based on all the subscribers of the former SoftBank Mobile Corp.
After the change: all data is calculated based on the data for main subscribers at SoftBank Corp.
ii. Definitions
Scope of inclusion for number of subscribers
Before the change: including the contracts described below
After the change: excluding the contracts described below
The overlapping portion of mobile data communication devices Note 12 compliant with the spectrums of the former
SoftBank Mobile Corp. and former Ymobile Corporation, etc. (number of subscribers as of March 31, 2015:
2,897,000)
Note:
17. Mobile data communication devices provided by the former SoftBank Mobile Corp. and former Ymobile Corporation that arecompatible with both companies’ spectrums. The devices were provided from February 2009 through a business alliance,
prior to the acquisition of former eAccess Ltd. by SoftBank Corp. (currently SoftBank Group Corp.). Previously, the numbersof subscribers for these devices were included in the respective numbers of subscribers of both companies.

24SoftBank Group Corp. Consolidated Financial Report
For the fiscal year ended March 31, 2016(b) Sprint
Fiscal Year Ended March 2015
Three-month Period Ended
June 30, Sept. 30, Dec. 31,
2014
2014
2014
Q1
Q2
Q3

Cumulative subscribers27

Mar. 31,2015
Q4
Full Year

Three-month Period Ended
June 30, Sept. 30,
Dec. 31,
2015
2015
2015
Q1
Q2
Q3

Mar. 31,2016
Q4

Full Year’000

54,55355,03755,92957,141

57,66858,57858,35958,806

Sprint platform’000

53,331

53,92154,88856,13756,812

57,86858,35958,806

Postpaid’000

29,737

29,46529,49529,70630,01630,39430,89530,951’000

25,78525,28425,07924,87824,86624,92925,29425,316’000

14,715

14,75015,16015,706

15,34015,152

14,661

14,397

’000

8,879

9,706

10,233

10,725

11,456

12,322

12,803

13,458

Clearwire30

’000

1,222

1,116

1,041

1,004

856

710

-

-

Net additions27

’000

(220)

590

967

1,249

2,586

675

1,056

491

447

2,669

’000

(181)

(272)

30

211

(212)

310

378

501

56

1,245

’000

(620)

(500)

(205)

(201) (1,526)

(12)

62

366

22

438

’000

(542)

35

410

546

449

(366)

(188)

(491)

(264)

(1,309)

’000

503

827

527

492

2,349

731

866

481

655

2,733

$/ month

69.34

69.02

69.01

69.19

69.91

70.62

70.99

71.53

Postpaid$/ month

62.07

60.58

58.90

56.94

55.48

53.99

52.48

51.68

Prepaid$/ month

27.38

27.19

27.12

27.50

27.81

27.66

27.44

27.72

Postpaid%/ month

2.05

2.18

2.30

1.84

1.56

1.54

1.62

1.72

Prepaid%/ month

4.44

3.76

3.94

3.84

5.08

5.06

5.82

5.65

Sprint total(incl.) Phone28, 29
29

Prepaid
Wholesale andaffiliate

Postpaid(incl.) Phone28, 29

Prepaid

Sprint platform

Fiscal Year Ended March 201629

Wholesale andaffiliate
Postpaid phone28
ABPU31
ARPU31

Churn rate31

27

Includes the number of communication module service subscribers
Smartphones and feature phones
29
In the second quarter, certain prepaid subscribers of Sprint who had their payment period extended for a certain period were included in the number of
postpaid subscribers. However, these subscribers have been reclassified to be included in the number of prepaid subscribers from the third quarter.
The number of subscribers for the second quarter has been retroactively revised in line with this change, along with other postpaid data: ARPU, phone
ABPU, and churn rate.
30
Subscribers acquired through the acquisition of assets from Clearwire Corporation31
For definitions and calculation methods of ABPU/ARPU and churn rate of the Sprint platform, see page 27 “(b) Sprint Platform” under “(Reference
2: Definitions and Calculation Methods of Principal Operational Data).”28

25

SoftBank Group Corp. Consolidated Financial Report
For the fiscal year ended March 31, 2016

(Reference 2: Definitions and Calculation Methods of Principal Operational Data)(a) SoftBank Corp.
i. Mobile Communications Service
・Subscribers
The following categories serve as cover-all terms for the service contracts described.
Main subscribers: smartphones,Note 18 feature phones, tablets, mobile data communication devices,Note 19 others
Communication modules: communication modules, Note 20 Mimamori Phone, prepaid mobile phones, others
PHS: PHS
Notes:
18. Smartphones to which the Smartphone Family Discount is applied are included under communication modules.
19. Mobile data communication devices to which the Data Card 2-Year Special Discount is applied are included undercommunication modules.
20. Communication modules that use PHS networks are included under PHS.

Principal Operational Data for Main Subscribers
・ARPU
ARPU: Average Revenue Per User per month
Total ARPU = (data-related revenue + basic monthly charge and voice-related revenues + device warrantee services + advertising
revenue + content-related revenues, etc.) / number of active subscribers (rounded to the nearest ¥10)
Telecom ARPU = (data-related revenue (packet communication and flat-rate charges, basic monthly Internet connection chargesetc.) + basic monthly charge and voice-related revenues (basic monthly usage charges, voice call charges,
revenues from incoming calls, etc.)) / number of active subscribers (rounded to the nearest ¥10)
Service ARPU = (device warrantee services, advertising revenue, content-related revenues, etc.) / number of active subscribers(rounded to the nearest ¥10)
Number of active subscribers: the total of the monthly numbers of active subscribers for the relevant period((subscribers at the beginning of the month + subscribers at the end of the month) / 2)
Revenues from incoming calls: interconnection charges received from other operators for voice calls from their customers on their
network to SoftBank and Y!mobile phones as a charge for the services provided in the SoftBank
Corp. service area

・Churn rate
Churn rate: average monthly churn rate (rounded to the nearest 0.01%)
Churn rate = number of churn / number of active subscribers for the relevant period.

The number of churn excludes the number ofsubscribers who switch between SoftBank and Y!mobile using MNP.
Number of active subscribers: the total of the monthly numbers of active subscribers for the relevant period((subscribers at the beginning of the month + subscribers at the end of the month) / 2)ii. Broadband Service
・Subscribers
SoftBank Hikari subscribers:
Number of users for which the physical connection of a fiber-optic line at the central office of NTT East or NTT West is complete.
Includes the number of subscribers to SoftBank Air.
Yahoo! BB hikari with FLET’ S subscribers:
Number of users of Yahoo! BB hikari with FLET’ S for which the physical connection of a fiber-optic line at the central office of NTT
East or NTT West is complete and who are provided with services

26

SoftBank Group Corp. Consolidated Financial Report
For the fiscal year ended March 31, 2016Yahoo! BB ADSL subscribers:
Number of users of Yahoo! BB ADSL for which the physical connection of an ADSL line at the central office of NTT East or NTT
West is complete

・ARPU
ARPU: Average Revenue Per User per month (rounded to the nearest ¥10)
ARPU = revenue of each broadband service / number of active subscribers
SoftBank Hikari ARPU = SoftBank Hikari revenue (basic monthly charge ＋ provider charge + Hikari BB unit rental charge +White hikari Phone and BB Phone voice call charge + optional service charges, etc.) / the number ofactive SoftBank Hikari subscribers* Calculation of SoftBank Hikari ARPU includes revenues and subscribers of SoftBank Air.
Yahoo! BB hikari with FLET’ S ARPU = Yahoo! BB hikari with FLET’ S revenue (provider charge + Hikari BB unit rental charge +BB Phone voice call charge + optional service charges, etc. (excluding usage charges for
FLET’S hikari and FLET’S hikari LIGHT)) / number of active Yahoo! BB hikari with
FLET’S subscribers
Yahoo! BB ADSL ARPU = Yahoo! BB ADSL revenue (basic monthly charge + provider charge + modem rental charge + BB Phone
voice call charge + optional service charges, etc.) / number of active Yahoo! BB ADSL subscribers
Number of active subscribers: the total of the monthly numbers of active subscribers for the relevant period((subscribers at the beginning of the month + subscribers at the end of the month) / 2)(b) Sprint Platform
・ABPU/ARPUABPU: Average Billings Per User per month (rounded to the nearest $.01)
ABPU = (service revenue + equipment billings) / number of active subscribers
Equipment billings: the sum of lease fees under the leasing program and installment billings under the installment billing program
ARPU: Average Revenue Per User per month (rounded to the nearest $.01)
ARPU = service revenue / number of active subscribers
Number of active subscribers: the total of the monthly numbers of active subscribers for the relevant period((subscribers at the beginning of the month + subscribers at the end of the month) / 2)
*ABPU/ARPU for postpaid phones are calculated by dividing the relevant telecom service revenue and equipment billings by its
number of active subscribers.

・Churn rate
Churn rate: average monthly churn rate (rounded to the nearest 0.01%)
Churn rate = number of deactivations / number of active subscribers
Deactivations: the total number of subscribers that churned during the relevant period.

The number of deactivations excludes thenumber of subscribers who switch between prepaid and postpaid.
Number of active subscribers: the total of the monthly numbers of active subscribers for the relevant period((subscribers at the beginning of the month + subscribers at the end of the month) / 2)27

SoftBank Group Corp. Consolidated Financial Report
For the fiscal year ended March 31, 2016

(Reference 3: Capital Expenditure, Depreciation and Amortization)(a) Capital Expenditure (Acceptance Basis)(Millions of yen)
Fiscal Year Ended March 2015

Fiscal Year Ended March 2016

Three-month Period Ended

Three-month Period Ended

June 30,2014

Sept. 30,
2014

Dec. 31,2014

Mar. 31,
2015

Q1

Q2

Q3

Q4

Domestic
Telecommunications segment

130,504

133,645

141,184

Sprint segment

148,793

162,025

Yahoo Japan
segment

8,532

Distribution
segment
OthersConsolidated
total

June 30,2015

Sept. 30,
2015

Dec. 31,2015

Mar. 31,2016

Full Year

Q1

Q2

Q3

Q4

Full Year

178,375

583,708

72,66488,51989,950161,447

412,580

213,765

175,266

699,849

160,367

165,421

194,848

101,730

622,366

5,031

9,418

7,073

30,054

7,196

16,921

9,904

18,16552,186

2,559

2,709

2,958

5,969

14,195

1,896

2,086

2,354

2,822

9,158

5,351

4,121

9,229

6,926

25,627

1,121

2,866

7,564

5,258

16,809295,739

307,531376,554373,609 1,353,433

243,244

275,813304,620

289,422 1,113,099(b) Depreciation and Amortization(Millions of yen)
Fiscal Year Ended March 2015

Fiscal Year Ended March 2016

Three-month Period Ended

Three-month Period Ended

June 30,2014

Sept. 30,
2014

Dec. 31,2014

Mar. 31,2015

June 30,2015

Sept. 30,
2015

Dec. 31,2015

Mar. 31,
2016

Q1

Q2

Q3

Q4

Full Year

Q1

Q2

Q3

Q4

Full Year

Domestic
Telecommunications segment

105,375

107,066

110,100

131,187453,728

107,798

110,911113,157

143,082474,948

Sprint segment

128,621

132,762

145,355

172,414579,152

190,278

207,901

223,975

219,956

842,110

Yahoo Japan
segment

3,653

4,271

4,515

5,925

18,364

5,646

7,287

9,077

10,68532,695Distribution
segment

2,446

2,141

2,220

3,441

10,248

2,406

3,385

2,590

1,887

10,268Others

8,114

8,020

8,533

9,086

33,753

10,070

8,741

8,546

9,223

36,580248,209254,260

270,723

322,053 1,095,245

316,198338,225

357,345

Consolidated
total

384,833 1,396,601

Notes:
21. The results for the fiscal year ended March 2015 are presented in accordance with the reportable segments adopted in the fiscal year
ended March 2016.
22. The amount of capital expenditure and depreciation and amortization excludes those of discontinued operations.

28

SoftBank Group Corp. Consolidated Financial Report
For the fiscal year ended March 31, 2016

c. Forecasts on the Consolidated Results of Operations for the Fiscal year Ending March 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 rational projections.

29SoftBank Group Corp. Consolidated Financial Report
For the fiscal year ended March 31, 2016

(2) Analysis of Financial Positiona. Assets, Liabilities and Equity
Assets, liabilities and equity at the end of the fiscal year were as follows:(Millions of yen)

As of March 31, 2015

As of March 31, 2016

ChangeChange %Total assets

21,034,169

20,707,192(326,977)(1.6%)

Total liabilities

17,180,992

17,201,921

20,9290.1%

Total equity

3,853,177

3,505,271(347,906)(9.0%)¥112.68¥(7.49)(6.2%)

Reference: Exchange rate at the end of the fiscal year used for translation¥120.17

USD/ JPY(a) Current Assets(Millions of yen)

As of March 31, 2015
Cash and cash equivalents

As of March 31, 2016

Change3,258,653

2,569,607(689,046)

481,891

297,552(184,339)

1,895,648

1,914,789

19,141

433,013363,546(69,467)

Other financial assets

197,068

152,858(44,210)Inventories

351,152

359,464

8,312

Other current assets

255,399553,551

298,152

Total current assets

5,957,920

5,550,269(407,651)(incl.) Sprint

Trade and other receivables(incl.) Sprint

Current assets decreased by ¥407,651 million (6.8%) from the previous fiscal year-end, to ¥5,550,269 million.

The

primary components of the change were as follows:i. Cash and cash equivalents decreased by ¥689,046 million from the previous fiscal year-end. For the details onchanges in cash and cash equivalents, please refer to page 36 “b. Cash Flows.”
ii. Other current assets increased by ¥298,152 million from the previous fiscal year-end. This mainly reflected therecording of ¥293,489 million in withholding income tax to be paid, related to dividends within the group companies,
which is expected to be refunded by the end of July 2016.

30

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

As of March 31, 2015
Property, plant and equipment

As of March 31, 2016

Change4,317,448

4,183,507(133,941)

2,141,120

2,055,371(85,749)

1,663,363

1,609,789(53,574)

353,867

331,811(22,056)

6,903,582

6,439,145(464,437)

5,993,034

5,468,665(524,369)

4,320,296

4,060,750(259,546)

4,320,296

4,060,750(259,546)

786,834

760,703(26,131)

772,433

722,539(49,894)582,223439,800(142,423)

496,594324,269(172,325)

Software757,866

782,148

24,282

Game titles

109,21159,844(49,367)

Others347,152

335,900(11,252)

1,102,456

1,588,270

485,814

Other financial assets

662,463

970,874

308,411

Deferred tax assets

235,488

172,864(62,624)

Other non-current assets

191,449

192,474

1,025

Total non-current assets

15,076,249

15,156,923

80,674(incl.) Sprint

Goodwill(incl.) Sprint

Intangible assets(incl.) Sprint
FCC licenses32(incl.) Sprint

Trademarks(incl.) Sprint

Customer relationships(incl.) Sprint

Investments accounted for using
the equity method

Non-current assets increased by ¥80,674 million (0.5%) from the previous fiscal year-end to ¥15,156,923 million.

The

primary components of the change were as follows:i. Investments accounted for using the equity method increased by ¥485,814 million from the previous fiscal year-end.
This mainly reflected an increase of ¥331,730 million in the carrying amount of Alibaba due to the recording ofincome on equity method investments related to Alibaba.

Other factors include the new recording of GungHo as

an investment accounted for using the equity method and an impact from the acquisition of the shares of Social
Finance, Inc., which provides consumer finance services such as student loan refinancing service in the U.S.
ii. Other financial assets increased by ¥308,411 million from the previous fiscal year-end.
investments including Forward Ventures, LLC and Yamada Denki Co., Ltd.

This mainly reflected

There was also an impact from anincrease in the fair value of shares of ANI Technologies Pvt. Ltd. and Jasper Infotech Private Limited.

32

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

31SoftBank Group Corp. Consolidated Financial Report
For the fiscal year ended March 31, 2016

iii. Intangible assets decreased by ¥464,437 million from the previous fiscal year-end. This mainly reflected a decreasein FCC licenses (non-amortized assets from an accounting perspective) of ¥259,546 million due to the yen’s yearon-year appreciation against the U.S. dollar at the end of the fiscal year, and a decrease in customer relationships of¥142,423 million due to regular amortization and the impact of the aforementioned yen’s appreciation.
iv. Property, plant and equipment decreased by ¥133,941 million from the previous fiscal year-end.

The primary

components were as follows:
・ Property, plant and equipment at SoftBank Corp. decreased by ¥105,113 million from the previous fiscal yearend due to continued regular depreciation of network equipment.
・ Property, plant and equipment at Sprint decreased by ¥85,749 million from the previous fiscal year-end. Thiswas due to the negative impact of yen’s year-on-year appreciation against the U.S. dollar at the end of the fiscal
year, despite an increase at Sprint in U.S. dollar terms. This increase in property, plant and equipment at Sprintin U.S. dollar terms was due to an increase in leased devices recorded as lease assets following an expansion ofleasing program.

This effect was partially offset by a decrease in the balance of network equipment due toregular depreciation.

(c) Current Liabilities(Millions of yen)

As of March 31, 2015
Interest-bearing debt

As of March 31, 2016

Change1,817,415

2,646,609

829,194

216,247

676,948460,701

413,846
60,085515,408
148,465

101,562
88,380Current portion of
long-term borrowings

525,898743,225

217,327

Current portion of
corporate bonds

183,557

900,685

717,128

113,491

431,808

318,317

Current portion oflease obligations

411,453

396,992(14,461)

Current portion ofpreferred securities

200,000-(200,000)

Others82,661

90,2997,638

1,863,480

1,621,195(242,285)

741,549

441,006(300,543)

Other financial liabilities

12,917

6,531(6,386)

Income taxes payables

184,175

140,351(43,824)

Provisions

54,99856,120

1,122

Other current liabilities

739,501

694,965(44,536)

Total current liabilities

4,672,486

5,165,771

493,285(incl.) Sprint
Short-term borrowings(incl.) Sprint(incl.) Sprint

Trade and other payables(incl.) Sprint

32

SoftBank Group Corp. Consolidated Financial Report
For the fiscal year ended March 31, 2016

Current liabilities increased by ¥493,285 million (10.6%) from the previous fiscal year-end to ¥5,165,771 million. The
primary components of the change were as follows:i. Interest-bearing debt increased by ¥829,194 million from the previous fiscal year-end. The primary components
were as follows;・ Interest-bearing debt at Sprint increased by ¥460,701 million from the previous fiscal year-end. The increase wasprimarily due to an increase of ¥318,317 million in the current portion of corporate bonds following the transfer
of corporate bonds from non-current assets as the redemption date came to be within one year. Another factor
was an increase of ¥88,380 million in short-term borrowings as Sprint procured funds by securitizing receivables(wireless service and installment receivables related to the mobile communications services).
・ Interest-bearing debt at SoftBank Group Corp. increased by ¥542,161 million from the previous fiscal year-end.
The increase was due to increases of ¥398,911 million in the current portion of corporate bonds and ¥154,551
million in the current portion of long-term borrowings. These increases mainly reflected the transfers from noncurrent liabilities.
・ Current portion of preferred securities decreased by ¥200,000 million from the previous fiscal year-end due to theCompany’s subsidiary SFJ Capital Limited’s redemption in May 2015 of the full amount of preferred (restricted
voting) securities issued in September 2011.
ii. Trade and other payables decreased by ¥242,285 million from the previous fiscal year-end. This mainly reflecteda decrease in accounts payable-trade related to mobile devices and accounts payable-other related totelecommunications equipment at Sprint and SoftBank Corp. after making payments.

33

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

As of March 31, 2015
Interest-bearing debt

As of March 31, 2016

Change9,789,829

9,275,822(514,007)

3,886,597

3,297,900(588,697)

Long-term borrowings

2,116,498

1,785,500(330,998)

Corporate bonds

6,825,868

6,611,947(213,921)

3,813,511

3,188,238(625,273)

Lease obligations

744,911815,194

70,283

Others102,552

63,181(39,371)

Other financial liabilities

27,142

95,664

68,522

Defined benefit liabilities

128,282

123,759(4,523)

Provisions

155,705

118,876(36,829)

2,052,615

2,083,164

30,5491,748,273

1,652,154(96,119)

Other non-current liabilities

354,933

338,865(16,068)

Total non-current liabilities

12,508,506

12,036,150(472,356)(incl.) Sprint(incl.) Sprint

Deferred tax liabilities(incl.) Sprint

Non-current liabilities decreased by ¥472,356 million (3.8%) from the previous fiscal year-end to ¥12,036,150 million,
mainly reflecting a decrease of ¥514,007 million in interest-bearing debt. The primary components of the decrease ininterest-bearing debt were as follows:・ Interest-bearing debt at Sprint decreased by ¥588,697 million from the previous fiscal year-end.

This mainlyreflected the transfer of corporate bonds into current liabilities as the redemption date came to be within one year,
in addition to the yen’s year-on-year appreciation against the U.S. dollar at the end of the fiscal year.
・ Interest-bearing debt at SoftBank Group Corp. increased by ¥180,717 million from the previous fiscal year-end.
This mainly reflected SoftBank Group Corp. issuing ¥552,990 million in foreign currency denominated senior notes
and a total of ¥470,000 million in unsecured straight corporate bonds. This was offset by a transfer of unsecured
straight corporate bonds and long-term borrowings into current liabilities as the redemption date came to be within
one year.

34

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

As of March 31, 2015

As of March 31, 2016

ChangeTotal equity attributable toowners of the parent

2,846,306

2,613,613(232,693)

Non-controlling interests

1,006,871

891,658(115,213)

Total equity

3,853,177

3,505,271(347,906)

Total equity decreased by ¥347,906 million (9.0%) from the previous fiscal year-end to ¥3,505,271 million. Of this,equity attributable to owners of the parent decreased by ¥232,693 million (8.2%), while non-controlling interests
decreased by ¥115,213 million (11.4%). The ratio of equity attributable to owners of the parent to total assets decreased
by 0.9 of a percentage point from the previous fiscal year-end to 12.6%.

(Equity Attributable to Owners of the Parent)(Millions of yen)

As of March 31, 2015

As of March 31, 2016

ChangeCommon stock

238,772

238,772-

Capital surplus

374,845

261,234(113,611)

Retained earnings

1,740,686

2,166,623

425,937

Treasury stock(48,383)(314,752)(266,369)

Accumulated othercomprehensive income

540,386

261,736(278,650)

Available-for-sale financial
assets

14,52432,594

18,070Cash flow hedges(7,345)(40,088)(32,743)

Exchange differences ontranslating foreign operations

533,207269,230(263,977)

2,846,306

2,613,613(232,693)

Total equity attributable toowners of the parent

Total equity attributable to owners of the parent decreased by ¥232,693 million (8.2%) from the previous fiscal yearend to ¥2,613,613 million. The primary components of the change were as follows:i. Capital surplus declined by ¥113,611 million from the previous fiscal year-end. This mainly reflected the deduction
from capital surplus of ¥120,847 million as changes in interests in subsidiaries due to the purchase of an additional
24.1% of the shares of subsidiary Supercell from its existing shareholders (the Company’s share of voting rights after
the additional purchase: 77.8%).
ii. Retained earnings increased by ¥425,937 million from the previous fiscal year-end.
net income attributable to owners of the parent of ¥474,172 million.

35

This mainly reflected recording

SoftBank Group Corp. Consolidated Financial Report
For the fiscal year ended March 31, 2016

iii. Treasury stock increased by ¥266,369 million from the previous fiscal year-end. This mainly reflected acquisitionsof 15,795,000 shares of treasury stock amounting to ¥120,000 million in August 2015 and 27,071,800 shares oftreasury stock amounting to ¥149,173 million from February to March 31, 2016, with the aim of strengthening thereturn of profits to shareholders.
iv. Accumulated other comprehensive income declined by ¥278,650 million from the previous fiscal year-end. This
mainly reflected a decline of ¥263,977 million in exchange differences on translating foreign operations, primarily
due to the yen’s year-on-year appreciation against the U.S. dollar at the end of the fiscal year.

(Non-controlling Interests)
Non-controlling interests decreased by ¥115,213 million (11.4%) from the previous fiscal year-end to ¥891,658 million.

b. Cash Flows
Cash flows for the fiscal year were as follows.
Cash and cash equivalents at the end of the fiscal year totaled ¥2,569,607 million, a ¥689,046 million decrease fromthe previous fiscal year-end.
(Millions of yen)

Fiscal Year Ended
March 31, 2015

Fiscal Year Ended
March 31, 2016

ChangeCash flows from operating activities

1,155,174

940,186(214,988)

Cash flows from investing activities(1,667,271)(1,651,682)

15,589Cash flows from financing activities

1,719,923

43,270(1,676,653)(a) Cash Flows from Operating Activities
Net cash provided by operating activities totaled ¥940,186 million (compared with ¥1,155,174 million provided in theprevious fiscal year). The primary components of cash flows were as follows:i. Net income totaled ¥558,241 million.
ii. The main items added to net income were depreciation and amortization of ¥1,401,329 million, income taxes of¥443,984 million, and finance cost of ¥440,745 million.
iii. The main items subtracted from net income were income on equity method investments of ¥375,397 million, gain fromremeasurement relating to business combination of ¥59,441 million, and other non-operating income and loss of¥56,854 million.
iv. Increase in inventories was ¥404,933 million (negative cash flow). This mainly reflected an increase in inventories
which accompanied the increased leased devices at Sprint. While normally a decrease in inventories is recognized
as cash inflow, the decrease in inventories following the reclassification of devices leased through Sprint’s directchannels to property, plant and equipment at lease inception is not recognized as cash inflow, since it is a non-cash
transaction.

36

SoftBank Group Corp. Consolidated Financial Report
For the fiscal year ended March 31, 2016v. Interest paid was ¥461,217 million.
vi. Income taxes paid was ¥1,230,087 million. This included a payment of ¥904,688 million for withholding income
tax related to dividends within the group companies.

Of this, ¥611,199 million was refunded by the end of

December 2015 (included in income taxes refund of ¥646,429 million) and ¥293,489 million is expected to berefunded by the end of July 2016.

(b) Cash Flows from Investing Activities
Net cash used in investing activities was ¥1,651,682 million (compared with ¥1,667,271 million used in the previous
fiscal year). The primary components of cash flows were as follows:i. Outlays for purchase of property, plant and equipment and intangible assets amounted to ¥1,360,960 million. This
mainly reflected an acquisition of telecommunications equipment at Sprint and SoftBank Corp.
ii. Proceeds from sales of property, plant and equipment and intangible assets amounted to ¥150,956 million. Thiswas due to Sprint’s sale of certain leased mobile devices recorded as property, plant, and equipment to Mobile
Leasing Solutions, LLC, an equity method affiliate of SoftBank Group Corp.
iii. Payments for acquisition of investments amounted to ¥407,754 million.

This mainly reflected investments

including Forward Ventures, LLC, Social Finance, Inc., and Yamada Denki Co., Ltd.
iv. Payments for acquisition and proceeds from sales/redemption of marketable securities for short-term trading
amounted to ¥94,349 million and ¥189,844 million, respectively.

This mainly reflected acquisition and sale ofmarketable securities for short-term trading, primarily by Sprint and Brightstar.

(c) Cash Flows from Financing Activities
Net cash provided by financing activities was ¥43,270 million (compared with ¥1,719,923 million provided in theprevious fiscal year). The primary components of cash flows were as follows:(Items Increasing Cash Flows)
Proceeds from long-term interest-bearing debt amounted to ¥2,129,683 million. The components were as follows:
・ Proceeds from issuance of corporate bonds of ¥1,053,258 million.

This consisted of SoftBank Group Corp.’sissuance of foreign currency denominated senior notes and unsecured straight corporate bonds.
・ Proceeds from long-term borrowings of ¥557,072 million.

This mainly reflected borrowings made throughsecuritization of installment sales receivables at SoftBank Corp., the sale of future lease receivables at Sprint, andborrowings made at Sprint through ECA finance.33
・ Proceeds from sale and leaseback of newly acquired equipment of ¥519,353 million. This mainly reflected saleand leaseback conducted when acquiring telecommunications equipment by finance lease at SoftBank Corp.

(Items Decreasing Cash Flows)i. Repayment of long-term interest-bearing debt was ¥1,604,768 million.

33

Funding based on the credit provided by export credit agencies (ECA)37

The primary components were as follows:SoftBank Group Corp. Consolidated Financial Report
For the fiscal year ended March 31, 2016

・ Repayment of long-term borrowings of ¥684,397 million. This mainly reflected SoftBank Corp. repayment ofborrowings made through securitization of installment sales receivables and SoftBank Group Corp. repaymentof borrowings.
・ Repayment of lease obligations of ¥468,061 million. This mainly reflected SoftBank Corp. repayment of leaseobligations for telecommunications-related equipment.

Additionally, in July 2015, Shiodome Estate

Corporation, a subsidiary that engages in real estate management, acquired a trust beneficiary interest in the
FUKUOKA YAHUOKU! DOME and repaid the remaining lease obligations as stipulated in a purchase contract
to acquire the trust beneficiary interest which the Company entered into in March 2012.
・ Redemption of corporate bonds of ¥203,281 million.

This mainly reflected Brightstar redeeming senior notesof ¥72,642 million, SoftBank Group Corp. redeeming straight corporate bonds of ¥70,000 million, and Sprint
mainly redeeming the funds procured through the Export Development Canada34 Facility of ¥60,539 million.
・ Redemption of preferred investment securities of ¥200,000 million.

This was due to the Company’s subsidiary

SFJ Capital Limited’s redemption in May 2015 of the full amount of preferred (restricted voting) securities issued
in September 2011.
ii. Payment for purchase of subsidiaries’ interests from non-controlling interests was ¥267,276 million.

This mainlyreflected the additional purchase of shares of Supercell and Sprint.
iii. Payment for purchase of treasury stock was ¥269,214 million.

(d) Trends in Cash Flow-related Indicators
A summary of trends in the Company’s cash flow-related indicators is as follows:
Fiscal Year Ended
March 31, 2015

Fiscal Year Ended
March 31, 201613.5 %

12.6 %

39.5%

29.7%

Net interest-bearing debt / EBITDA ratio

4.0 times

3.8 times

Interest coverage ratio

5.6 times

5.5 times

Ratio of equity attributable to owners of theparent to total assets
Ratio of equity attributable to owners of theparent (market capitalization base) to total assets

Ratio of equity attributable to owners of the parent to total assets: equity attributable to owners of the parent / total assets
Ratio of equity attributable to owners of the parent (market capitalization base) to total assets: market capitalization / total assets
Net interest-bearing debt / EBITDA ratio: net interest-bearing debt / adjusted EBITDA
Interest coverage ratio: adjusted EBITDA / finance cost
Notes:
23. The above indicators are calculated based on consolidated figures of the continuing operations.
24. Market capitalization = market value of shares at the end of the fiscal year × number of shares outstanding, net of treasury stock
25. Net interest-bearing debt = interest-bearing debt - cash position
Cash position = cash and cash equivalents + short-term investments recorded as current assets
26. Adjusted EBITDA = operating income (loss) + depreciation and amortization – gain from remeasurement relating to businesscombination ± other operating income (loss)

34

A Canadian export credit agency

38

SoftBank Group Corp. Consolidated Financial Report
For the fiscal year ended March 31, 2016

(3) Fundamental Policy for Distribution of Profit and Dividend for the Fiscal Year Ended March 2016
SoftBank Group Corp.’s basic policy is to maintain a sound financial status while both investing aggressively to ensuresustained growth and returning profits to shareholders. Returns to shareholders include cash dividends paid twice per
year, in principle, as an interim dividend and a year-end dividend.
SoftBank Group Corp. has proactively repurchased its own shares in the fiscal year in an effort to enhance returns toshareholders. In addition to the repurchase of 15,795,000 shares pursuant to the Board of Directors’ resolution made inAugust 2015, SoftBank Group Corp. has also repurchased 27,071,800 shares by the end of March 2016, pursuant to theBoard of Directors’ resolution made in February 2016 (collectively, the “Share Repurchase”).
Resulting mainly from the Share Repurchase, the total number of shares issued (excluding treasury stock) at the end of
the fiscal year decreased by 3.6% from the previous fiscal year-end. Nevertheless, for the purpose of making the total
amount of the annual cash dividend for the fiscal year equivalent to that of the previous fiscal year, the Board of Directors
resolved to propose at the Annual General Meeting of Shareholders a year-end dividend for the fiscal year of ¥21 per share,
an increase of ¥1 from ¥20 for the previous fiscal year.

Together with the interim dividend of ¥20, this brings the annual

dividend for the fiscal year to ¥41 per share, an increase of ¥1 from the previous fiscal year.
SoftBank Group Corp. intends to substantially enhance returns to shareholders through the increase of the dividend, as
well as the Share Repurchase.

39SoftBank Group Corp. Consolidated Financial Report
For the fiscal year ended March 31, 2016

2. Management Policies(1) Basic Management Approach
The Company is guided by a corporate philosophy of “Information Revolution – Happiness for everyone.”

The Company

aims to be a provider of the most essential technologies and services to people around the world through its endeavors invarious businesses in the information industry, while maximizing its enterprise value.
(2) Target Management Index
The Company focuses on the medium- to long-term growth of adjusted EBITDA. (Note27)
Note:
27. Adjusted EBITDA = operating income (loss) + depreciation and amortization – gain from remeasurement relating to businesscombination ± other operating income (loss)(3) Medium- to Long-term Strategies
a. Focus on Mobile Internet
In the ICT market, the rapid penetration of smartphones is causing a shift from PCs to mobile devices as the preferredmeans of accessing the Internet.35
The Company will realize sustainable growth by concentrating on business development in the field of mobile Internet,
which is growing in line with these changes. Specifically, the Company is working to strengthen its communications
network and provide high-speed data communications services, enhance its lineup of smartphones and tablets, expand its
mobile content such as games, optimize services such as e-commerce for mobile devices, and enhance its cloud services,among other initiatives.

By promoting mobile Internet usage, the entire Company will increase revenues from the useof data communications services and other services and content.

b. Aggressive Investment in Internet-related Companies
The information industry is characterized by rapid changes in technology, business models, and market needs.

To

become a provider of the most essential technologies and services to people around the world, it is imperative that theCompany be flexible regarding any specific technologies or business models, and continue transforming itself repeatedly
in line with the changes in the times, expanding and changing its lines of businesses.
To overcome these challenges, the Company aggressively invests in Internet-related companies possessing outstanding
technologies and business models that are expected to achieve strong growth. The Company will leverage its extensive
insights and networks to support the growth of investees. At the same time, the Company will continuously expand andchange its business offerings by organically combining its own strengths with those of its investees to create synergies.
Through this process, the Company will realize sustainable growth.

35

GSMA Intelligence40SoftBank Group Corp. Consolidated Financial Report
For the fiscal year ended March 31, 2016(4) Important Management Issues for the Company
a. Steady Profit Growth in the Domestic Telecommunications Business
The Japanese mobile communications market is expected to grow at a slower pace than before going forward, given thatthe domestic mobile communications service subscribers reached 158.59 million36 with the population penetration rateof 125.1%.37
To ensure steady profit growth in the Japanese telecommunications market in this environment, the Company has
identified users of smartphones, feature phones, tablets, and mobile data communication devices, which are all sourcesof revenue and profit, as the “main subscribers” of its mobile communications service and concentrates its efforts on
acquiring and maintaining such users. Among these, the strongest emphasis is on strengthening the acquisition and the
reduction of the churn rate of smartphone subscribers, and the Company is therefore focusing on increasing sales of Home
Bundle Discount Hikari Set, which offers a discount on the communication charges of mobile communications services
to customers subscribing to both mobile communications services and broadband services such as SoftBank Hikari.
Moreover, the Company is working to develop new peripheral services such as video streaming, electricity provision,and robotics.

The Company is also pursuing further operational efficiency and cost reductions by leveraging the effects

of integrating its four domestic telecommunication subsidiaries in April 2015.

b. Revamp of the Sprint BusinessIn the Sprint business, Sprint aims to return to a growth trajectory by turning around the ongoing declining trend in net
sales while promoting large-scale cost reductions and available liquidity improvement.

As for net sales, Sprint isfocusing on increasing the number of postpaid phone subscribers, which are the largest source of revenue. Signs of aturnaround have begun to appear with net subscriber additions for three consecutive quarters from the second quarter ofthe year ended March 2016.
Meanwhile, in cost reduction, Sprint began to transform its cost structure (the “Transformation”) to reduce operating
expenses during the fiscal year. Through the Transformation, Sprint expects to achieve a run rate38 operating expense
reduction of $2 billion or more exiting the fiscal year ending March 2017, with the cost reduction effect projected tocontinue in the following fiscal years. With this turnaround in net sales and cost reduction, Sprint is pursuing positive
free cash flow for the first time since its acquisition by the Company in July 2013.
To improve available liquidity, Sprint will not only improve cash flow by reducing costs, but also diversify its sourcesof financing, such as handset sale-leaseback transactions. Sprint expects to maintain an adequate amount of available
liquidity to fully fund the repayment of the $3.3 billion of note maturities that come due in the fiscal year ending March2017 and to execute its current business plan.

3. Basic Approach to the Selection of Accounting Standards
The Company adopts International Financial Reporting Standards (“IFRSs”).

36

The number of mobile communications service subscribers for NTT DOCOMO, INC., KDDI CORPORATION, and SoftBank Corp. as of December
31, 2015 published by the Telecommunications Carriers Association plus the number of PHS service subscribers at SoftBank Corp. as of December
31, 2015
37
The rate is calculated by dividing the above number of mobile communications service subscribers by the population of Japan estimated by the Ministryof Internal Affairs and Communications Statistics Bureau (provisional estimates as of January 1, 2016).
38
Estimated future figures based on the assumption that current trends continue

41

SoftBank Group Corp. Consolidated Financial Report
For the fiscal year ended March 31, 2016

4. Notes to Summary Information(1) Significant Changes in Scope of Consolidation for the Fiscal Year Ended March 31, 2016
(Specified subsidiaries (five companies) excluded from the scope of consolidation)
SoftBank Mobile Corp., SoftBank BB Corp., SoftBank Telecom Corp., and Ymobile Corporation conducted anabsorption type merger with SoftBank Mobile Corp. being the surviving company, effective on April 1, 2015. As aresult of the merger, SoftBank BB Corp., SoftBank Telecom Corp., and Ymobile Corporation, which were our
specified subsidiaries, were dissolved and are excluded from the scope of consolidation. SoftBank Mobile Corp.
changed its company name to SoftBank Corp. on July 1, 2015.
SoftBank Group Corp. merged with Mobiletech Corporation, effective on December 1, 2015, and subsequently on thesame day, merged with BB Mobile Corp., a subsidiary of Mobiletech Corporation. As a result of the merger,
Mobiletech Corporation and BB Mobile Corp., which were our specified subsidiaries, were dissolved and are excluded
from the scope of consolidation.

(2) Changes in Accounting Estimates(Impairment loss on financial assets)
Certain shares and other were impaired as the investment amounts were not expected to be collected for the fiscal year
ended March 31, 2016. The details are described in “Note 17. Other non-operating income (loss) Note 2” under “5.
Consolidated Financial Statements (6) Notes to Consolidated Financial Statements.”(Impairment loss on non-current assets)
The recoverable amount of certain cash-generating unit in the Distribution segment became negative and therefore thecarrying amount related to the cash-generating unit was impaired, as a result of reviewing the business plan, for the
fiscal year ended March 31, 2016. The details are described in “Note 14. Other operating loss Note 5” under “5.
Consolidated Financial Statements (6) Notes to Consolidated Financial Statements.”

42

SoftBank Group Corp. Consolidated Financial Report
For the fiscal year ended March 31, 2016

5. Consolidated Financial Statements(1) Consolidated Statements of Financial Position(Millions of yen)

As ofMarch 31, 2015

As ofMarch 31, 2016

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

3,258,653
1,895,648
197,068
351,152
255,399
5,957,920

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

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

4,317,448
1,663,363
6,903,582
1,102,456
662,463
235,488
191,449
15,076,249
21,034,169

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

43

SoftBank Group Corp. Consolidated Financial Report
For the fiscal year ended March 31, 2016

(Millions of yen)

As ofMarch 31, 2015
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 ofMarch 31, 2016

1,817,415
1,863,480
12,917
184,175
54,998739,501
4,672,486

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

Total liabilities

9,789,829
27,142
128,282
155,705
2,052,615
354,933
12,508,506
17,180,992

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

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
374,845
1,740,686(48,383)
540,386
2,846,306
1,006,871
3,853,177
21,034,169

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

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

44SoftBank Group Corp. Consolidated Financial Report
For the fiscal year ended March 31, 2016

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

Fiscal year ended
March 31, 2015*
Continuing operations
Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Gain from remeasurement relating tobusiness combination
Other operating loss
Operating income
Finance cost
Income on equity method investments
Dilution gain from changes in equity interest
Other non-operating income (loss)
Income before income tax
Income taxes
Net income from continuing operations
Discontinued operations
Net income (loss) from discontinued operations
Net income
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

8,504,135(5,247,977)
3,256,158

9,153,549(5,626,652)
3,526,897(2,309,770)(2,447,598)-

59,441(27,668)
918,720(366,500)
76,614
599,815(15,614)
1,213,035(470,317)
742,718(139,252)
999,488(440,744)
375,397
14,90356,7201,005,764(440,555)
565,209

20,964
763,682(6,968)558,241

668,361
95,321
763,682

474,172
84,069558,241562.68(0.48)
562.20411.22(8.73)
402.49559.23(0.48)
558.75397.05(8.73)
388.32

Note:*Continuing operations and discontinued operations are revised and presented separately.
18. Discontinued operations.”

45

Fiscal year ended
March 31, 2016

The details are described in “NoteSoftBank Group Corp. Consolidated Financial Report
For the fiscal year ended March 31, 2016

Consolidated Statements of Comprehensive Income(Millions of yen)

Fiscal year ended
March 31, 2015
Net income
Other comprehensive income (loss), 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 (loss), net of tax
Total comprehensive income
Total comprehensive income attributable to
Owners of the parent
Non-controlling interests

46

Fiscal year ended
March 31, 2016

763,682558,241(59,377)342(59,377)

342

3,726
12,862(4,906)(31,992)

409,596(289,735)(2,227)27,642423,957(298,991)

364,580
1,128,262(298,649)
259,592

991,671
136,591
1,128,262

195,864
63,728259,592

SoftBank Group Corp. Consolidated Financial Report
For the fiscal year ended March 31, 2016

(3) Consolidated Statements of Changes in Equity
For the fiscal year ended March 31, 2015
(Millions of yen)
Equity attributable to owners of the parent

As of April 1, 2014
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 in interests in
subsidiaries
Share-based paymenttransactions
Other
Total transactions withowners and othertransactions
As of March 31, 2015

Commonstock
238,772

Capitalsurplus405,045

Retainedearnings
1,168,266

Treasurystock(51,492)--

668,361---

Accumulated
othercomprehensive
incomeNoncontrollinginterests Total equity
899,941 2,830,382

169,850

Total
1,930,441--

668,361

95,321

763,682--

323,310323,310

41,270364,580-

668,361-

323,310

991,671

136,591

1,128,262--(47,547)--(47,547)(37,612)(85,159)--(47,226)-

47,226

-

-

-

-

-

(1,168)

3,109

-

1,941

-

1,941

-

-

-

-

-

-

4,218

4,218

-

(33,162)---(33,162)

11,110(22,052)

-

2,962

-

-

-

2,962

(7,094)(4,132)

-

-

-

-

-

-

(283)

(283)

-

(30,200)(95,941)

3,109

47,226(75,806)(29,661)(105,467)

238,772

374,845

1,740,686(48,383)

540,386

2,846,306

1,006,871

3,853,177

47

SoftBank Group Corp. Consolidated Financial Report
For the fiscal year ended March 31, 2016

For the fiscal year ended March 31, 2016
(Millions of yen)
Equity attributable to owners of the parent

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

Accumulated
othercomprehensive
income540,386

Total
2,846,306

Noncontrollinginterests
1,006,871--

474,172

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

474,172-(278,308)

195,864

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

-

-

342

-

(342)

-

-

-

-

-

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

-

-

-

-

-

-

54,40954,409

-

-

-

-

-

-

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

15,736---

15,736-

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

5,943

2,486

-

3,022

-

-

-

3,022

(1,947)

1,075-(113,611)(342)(428,557)(178,941)(607,498)

238,772

261,234

261,736

2,613,613

891,658

3,505,271

Commonstock
238,772

Capitalsurplus374,845

Retainedearnings
1,740,686--

474,172---

Treasurystock(48,383)(266,369)(48,235) (266,369)
2,166,623(314,752)

48

Total equity
3,853,177

SoftBank Group Corp. Consolidated Financial Report
For the fiscal year ended March 31, 2016

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

Fiscal year ended
March 31, 2015
Cash flows from operating activities
Net income
Depreciation and amortization
Gain from remeasurement relating to businesscombination
Finance cost
Income on equity method investments
Dilution gain from changes in equity interest
Other non-operating loss (income)
Income taxes
Increase in trade and other receivables
Increase in inventories
Increase (decrease) 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 andequipment, and intangible assets
Payments for acquisition of investments
Proceeds from sales/redemption of investments
Decrease from acquisition of control oversubsidiaries
Decrease from loss of control over subsidiaries
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
Increase (decrease) in cash and cash equivalents
Cash and cash equivalents at the beginning of the year
Cash and cash equivalents at the end of the year
49

Fiscal year ended
March 31, 2016

763,682
1,122,531

558,241
1,401,329-(59,441)

366,505(76,614)(599,815)
15,582
513,363(85,357)(178,353)
27,80993,538
1,962,871
5,642(407,665)(489,584)
83,9101,155,174

440,745(375,397)(14,903)(56,854)443,984(50,740)(404,933)(698)
91,656
1,972,989
12,072(461,217)(1,230,087)
646,429
940,186(1,397,856)(1,360,960)

41,468150,956(287,801)
133,888(407,754)
58,161(47,862)(61,670)-(63,070)(281,620)(94,349)

280,661

189,844(108,149)(1,667,271)(62,840)(1,651,682)

108,541
2,715,501(984,783)

128,135
2,129,683(1,604,768)(52,883)(267,276)(42)(47,519)(37,834)
18,942
1,719,923(269,214)(47,219)(47,497)
21,42643,27087,337(20,820)

1,295,163
1,963,490
3,258,653(689,046)
3,258,653
2,569,607

SoftBank Group Corp. Consolidated Financial Report
For the fiscal year ended March 31, 2016(5) Significant Doubt about Going-concern Assumption
There are no applicable items for the fiscal year ended March 31, 2016.
(6) Notes to Consolidated Financial Statements
1. Reporting entity
SoftBank Group Corp. is a corporation domiciled in Japan. The registered address of SoftBank Group Corp.’s head
office is disclosed on our website (http://www.softbank.jp/). These consolidated financial statements are composedof SoftBank Group Corp. and its subsidiaries (the “Company”). The Company engages in various businesses in theinformation industry, with its base in the Domestic Telecommunications segment, the Sprint segment, the Yahoo
Japan segment, and the Distribution segment. The details are described in “Note 5. Segment information (1)Description of reportable segments.”
SoftBank Corp. changed its company name to SoftBank Group Corp. effective on July 1, 2015.
SoftBank Mobile Corp., SoftBank BB Corp., SoftBank Telecom Corp., and Ymobile Corporation, which were
subsidiaries of the Company, conducted an absorption type merger with SoftBank Mobile Corp. being the surviving
company, effective on April 1, 2015. SoftBank Mobile Corp. changed its company name to SoftBank Corp. on July
1, 2015.

2. Basis of preparation of consolidated financial statements(1) Compliance with IFRSs
The Company meets the criteria of a “Designated IFRSs Specified Company” defined under Article 1-2 of theRegulations Concerning Terminology, Forms, and Preparation Methods of Consolidated Financial Statements(“the Regulations of Consolidated Statements”) (Ministry of Finance Regulation No. 28, 1976), and accordingly
the consolidated financial statements of the Company have been prepared in compliance with International
Financial Reporting Standards (“IFRSs”) pursuant to Article 93 of the Regulations of Consolidated Statements.
(2) Basis of measurement
These consolidated financial statements have been prepared on the historical cost basis, except for certain items,
such as financial instruments, that are measured at fair value as described in “Note 3. Significant accounting
policies.”(3) Presentation currency and unit of currency
These consolidated financial statements have been presented in Japanese yen, which is the currency of the primaryeconomic environment of SoftBank Group Corp. (“functional currency”), and are rounded to the nearest millionyen.
(4) Changes in presentation(Consolidated statements of income)Continuing operations and discontinued operations are presented separately for the fiscal year ended March 31,
2016. In order to reflect the change, the presentation has been reclassified similarly for the fiscal year ended
March 31, 2015. The details are described in “Note 18. Discontinued operations.”(Consolidated statements of cash flows)a. “Increase in inventories” which was included in “Other” in net cash provided by operating activities for the
fiscal year ended March 31, 2015 is separately presented for the fiscal year ended March 31, 2016 since thesignificance of the amount increased. In order to reflect the change, ¥(178,353) million which was included
in “Other” in net cash provided by operating activities in the consolidated statements of cash flows for the
fiscal year ended March 31, 2015, is reclassified as “Increase in inventories.”

50

SoftBank Group Corp. Consolidated Financial Report
For the fiscal year ended March 31, 2016

b. “Income taxes refund” which were included in “Income taxes paid” in net cash provided by operating activities
for the fiscal year ended March 31, 2015 are separately presented for the fiscal year ended March 31, 2016
since the significance of the amount increased. In order to reflect the change, ¥83,910 million which was
included in “Income taxes paid” in net cash provided by operating activities in the consolidated statements ofcash flows for the fiscal year ended March 31, 2015, is reclassified as “Income taxes refund.”c. “Proceeds from sales of property, plant and equipment, and intangible assets” which were included in “Other”
in net cash used in investing activities for the fiscal year ended March 31, 2015 are separately presented for the
fiscal year ended March 31, 2016 since the significance of the amount increased. In order to reflect thechange, ¥41,468 million which was included in “Other” in net cash used in investing activities in the
consolidated statements of cash flows for the fiscal year ended March 31, 2015, is reclassified as “Proceedsfrom sales of property, plant and equipment, and intangible assets.”d. “Purchase of treasury stock” which was included in “Other” in net cash provided by financing activities for the
fiscal year ended March 31, 2015 is separately presented for the fiscal year ended March 31, 2016 since thesignificance of the amount increased. In order to reflect the change, ¥(42) million which was included in“Other” in net cash provided by financing activities in the consolidated statements of cash flows for the fiscal
year ended March 31, 2015, is reclassified as “Purchase of treasury stock.”(5) New standards and interpretations not yet adopted by the Company
New standards and interpretations which are newly established or amended before the approval date of theconsolidated financial statements, not yet adopted by the Company and which may have potential impacts are as
follows. The Company is currently evaluating the potential impacts.

Mandatory adoption(From the year
Standard/interpretation
IFRS 9Financial

beginning)
January 1, 2018

Instruments

IFRS 15

Revenuefromcontracts withcustomers

January 1, 2018

To be adopted

Outline of the new/revised standards
IFRS 9 replaces a part of the previous IAS 39. Mainrevisions are:year ending
to revise classification into measurement categories ofMarch 31, 2019financial instruments (amortized costs and fair values)
and measurement;
to revise the treatment of changes in fair values offinancial liabilities measured at fair values;
to revise the eligibility requirement of hedged items andhedging instruments, and requirements related to theeffectiveness of the hedge; andto revise the measurement approach for impairment byintroducing an impairment model based on the expectedcredit loss.
by the Group

From the fiscal

IFRS 15 replaces the previous IAS 11 and IAS 18. Mainrevisions are:year ending
to require revenue recognition by the following five steps:
March 31, 2019a. identify the contract with the customer
b. identify the performance obligations in the contractc. determine the transaction priced. allocate the transaction price to each performanceobligation in the contract
e. recognise revenue when (or as) a performanceobligation is satisfied
to revise the treatment for contract costs, license andguarantee of products; andto increase the disclosure related to revenue recognition.
From the fiscal

51

SoftBank Group Corp. Consolidated Financial Report
For the fiscal year ended March 31, 2016

Mandatory adoption(From the year
Standard/interpretation

beginning)

IFRS 16

LeasesJanuary 1, 2019

IAS 7

Statement ofJanuary 1, 2017

(Amendment)

cash flows

To be adopted

Outline of the new/revised standards
From the fiscal IFRS 16 replaces the previous IAS 17 and IFRIC 4. Mainrevisions are:year ending
Revision to apply a control model to the identification ofMarch 31, 2020leases and distinguishing between leases and service
contracts; andRevision to eliminate lease classification and recognitionof assets and liabilities for all leases by the lessee.
by the Group

From the fiscal
year ending

Requirement for additional disclosure related to changes inliabilities arising from financing activities.

March 31, 2018(6) Definition of company name and abbreviation 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.
“Sprint”

Sprint Corporation“Brightstar”

Brightstar Global Group Inc.

“Clearwire”

Clearwire Corporation“Supercell”

Supercell Oy“Alibaba”

Alibaba Group Holding Limited“GungHo”

GungHo Online Entertainment, Inc.

Note:
SoftBank Corp., a pure holding company, changed its company name to SoftBank Group Corp. effective on
July 1, 2015. The company name “SoftBank Group Corp.” is used consistently in the notes including theinformation with regard to the transactions occurred before the change.

52SoftBank Group Corp. Consolidated Financial Report
For the fiscal year ended March 31, 2016

3. Significant accounting policies
Accounting policies the Company has adopted have been applied consistently to all periods presented in these
consolidated financial statements.
(1) Basis of consolidationa. Subsidiaries
A subsidiary is an entity that is controlled by SoftBank Group Corp.
The Company controls an entity when the Company is exposed to, or has rights to, variable returns from its
involvement with the entity and has the ability to affect those returns through its power over the entity.
The subsidiaries’ financial statements are consolidated from the date when control is acquired (“acquisitiondate”) until the date when the control is lost.
When necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting
policies in line with those used by the Company.
Non-controlling interests consist of those interests at the acquisition date and any adjustments for subsequentchanges in those interests.
Total comprehensive income of subsidiaries is generally attributed to the owners of the parent and to thenon-controlling interests, even if this results in the non-controlling interests having a deficit balance.
All intragroup balances and transactions and unrealized gain or loss arising from intragroup transactions are
eliminated on consolidation.
Changes in the Company’s ownership interests in subsidiaries that do not result in the Company’s losing
control over the subsidiaries are accounted for as equity transactions. The carrying amounts of theCompany’s interests and the non-controlling interests are adjusted to reflect the changes in their interests in thesubsidiaries.
Any difference between the amount by which the non-controlling interests are adjusted and the fair value of theconsideration paid or received is recognized directly in equity and attributed to owners of the parent.
When SoftBank Group Corp. loses control of a subsidiary, a gain or loss is calculated as the difference
between:・the aggregate of the fair value of the consideration received and the fair value of any retained interest, and:・the net carrying amount of the assets (including goodwill), liabilities, and non-controlling interests of thesubsidiary when a control is lost.
Any amounts previously recognized in accumulated other comprehensive income in relation to the former
subsidiaries are reclassified to profit or loss.
b. Associates and joint ventures
An associate is an entity over which SoftBank Group Corp. has significant influence in the financial andoperating policy decisions but does not have control or joint control.
A joint venture is an investment which parties including SoftBank Group Corp. have joint control based on thecontractual arrangement that requires unanimous consent related to significant decision of the businessactivities and have rights to the net assets of the arrangement.
Investments in associates and joint ventures are accounted for using the equity method and initially recognizedat cost. The investment is adjusted thereafter to recognize the Company’s interest of the profit or loss andother comprehensive income from the date of acquisition to the date of loss of significant influence.
However, regarding preferred stock investment in associates, when the feature of preferred stock is
substantively different from common stock, it is not accounted for using the equity method, and it is53SoftBank Group Corp. Consolidated Financial Report
For the fiscal year ended March 31, 2016

designated as financial assets at fair value through profit or loss (“financial assets at FVTPL”). Please referto “(4) Financial instruments” under “Note 3. Significant accounting policies” for details.
When the losses of an associate and a joint venture exceed the Company’s interest in the associate and thejoint venture, long-term interests that, in substance, form a part of the net investment in the company are
decreased to zero, and no additional loss is recognized except when the Company incurs legal or constructive
obligations to or makes payments on behalf of the associate and the joint venture.
Unrealized gains or losses on intercompany transactions with associates and joint ventures are added to or
deducted from the carrying amount of the investments only to the extent of the Company’s interest in theassociates and the joint ventures.
Any excess in the cost of acquisition of an associate and a joint venture over the Company’s interest of the net
fair value of the identifiable assets and liabilities recognized at the date of acquisition is recognized as
goodwill and included within the carrying amount of the investments in associates and joint ventures.
Because goodwill is not separately recognized, it is not tested for impairment separately. Instead, the entire
carrying amount of the investments in associates and joint ventures, including goodwill, is tested for
impairment as a single asset whenever objective evidence indicates that the investment may be impaired.
The Company applies the equity method to the financial statements of Alibaba, an associate of the Company,
on a three-month time lag, as it is impracticable to conform the reporting period of Alibaba due to the contract
with Alibaba. Adjustments are made for significant transactions or events that occurred during theintervening period and which were publicly announced by Alibaba.
(2) Business combinations
Business combinations are accounted for using the acquisition method at the acquisition date.
The consideration transferred in a business combination is measured as the sum of the assets transferred by theCompany, liabilities assumed by the Company from the former owners of the acquiree, and the fair value at theacquisition date of the equity interests issued by the Company. Acquisition-related costs are recognized in profit
or loss as incurred.
At the acquisition date, the identifiable assets acquired and the liabilities assumed are recognized at their fairvalue, except that:・deferred tax assets or liabilities and assets or liabilities related to employee benefits are recognized andmeasured in accordance with IAS 12 “Income Taxes” and IAS 19 “Employee Benefits,” respectively;
・liabilities or equity instruments related to share-based payment arrangements of the acquiree or share-based
payment arrangements of the Company entered into to replace share-based payment arrangements of theacquiree are measured in accordance with IFRS 2 “Share-based Payment” at the acquisition date; and・assets or disposal groups that are classified as held for sale are measured in accordance with IFRS 5“Non-current Assets Held for Sale and Discontinued Operations.”
The excess of the consideration transferred and the amount of any non-controlling interest in the acquiree overthe fair value of the identifiable net assets acquired at the acquisition date is recorded as goodwill. If theconsideration transferred and the amount of any non-controlling interest in the acquiree is less than the fair valueof the identifiable net assets of the acquired subsidiary, the difference is recognized immediately in profit or loss.
On an acquisition-by-acquisition basis, the Company chooses a measurement basis of non-controlling interests ateither fair value or by the proportionate share of the non-controlling interests in the recognized amounts of theacquiree’s identifiable net assets. When a business combination is achieved in stages, the Company’s
previously held interest in the acquiree is remeasured at fair value at the acquisition date and the resulting gain or
loss, if any, is recognized in profit or loss.

54

SoftBank Group Corp. Consolidated Financial Report
For the fiscal year ended March 31, 2016

Amounts arising from changes in the value of interests in the acquiree prior to the acquisition date that havepreviously been recognized in other comprehensive income are recognized in profit or loss.
If the initial accounting for a business combination is incomplete by the end of the fiscal year, the Company
reports in its consolidated financial statements provisional amounts for the items for which the accounting is
incomplete. The Company retrospectively adjusts the provisional amounts recognized at the acquisition date as
an adjustment during the measurement period when new information about facts and circumstances that existed
as of the acquisition date and, if known, would have affected the recognized amounts for the businesscombination. The measurement period shall not exceed one year from the acquisition date.
Goodwill arising in business combinations that occurred before the date of transition to IFRSs is carried over at
the carrying amount under the previous accounting principles (Japanese Generally Accepted Accounting
Principles, “JGAAP”) as of the date of transition to IFRSs, and recorded by that amount after an impairment test.
(3) Foreign currency translationa. Transactions denominated in foreign currencies
The financial statements of each company are prepared in their functional currency. Transactions incurrencies other than the entity’s functional currency (foreign currencies) are translated at the rates of
exchange prevailing at the dates of the transactions.
Monetary items denominated in foreign currencies are translated into the functional currency at the rates
prevailing at the end of the fiscal year. Non-monetary items carried at fair value that are denominated inforeign currencies are translated into the functional currency at the rates prevailing at the date when the fairvalue was measured.
Exchange differences arising from translation are recognized in profit or loss, except for exchange differences
arising from non-monetary available-for-sale financial assets measured through other comprehensive income
and cash flow hedges are recognized in other comprehensive income.
b. Foreign operations
For the purposes of presenting consolidated financial statements, the assets and liabilities of the Company’s
foreign operations (including goodwill arising from acquisitions and the adjustments of fair value) aretranslated into Japanese yen using exchange rates prevailing at the end of the fiscal year.
Income, expenses and cash flows are translated into Japanese yen by using the average exchange rates for eachquarter. When the translated amounts do not approximate the amounts translated by the exchange rates at thedates of the transactions, the exchange rates at the transaction dates are used for the translation.
The exchange rates used in the translation are described in “Note 12. Foreign exchange rate.”
Exchange differences arising from translating the financial statements of foreign operations are recognized inother comprehensive income and cumulative differences are included in accumulated other comprehensive
income.
These cumulative differences are reclassified from equity to profit or loss when the Company loses control orsignificant influence over the foreign operation.
(4) Financial instruments
a. Financial instruments
Financial assets and financial liabilities are recognized when the Company becomes a party to the contract
provision of the instrument.
Financial assets and financial liabilities are measured at fair value at initial recognition. Transaction costs thatare directly attributable to the acquisition of financial assets and issuance of financial liabilities other thanfinancial assets at FVTPL and financial liabilities at fair value through profit or loss (“financial liabilities at
FVTPL”) are added to the fair value of the financial assets or deducted from the fair value of financial
55

SoftBank Group Corp. Consolidated Financial Report
For the fiscal year ended March 31, 2016

liabilities at initial recognition. Transaction costs directly attributable to the acquisition of financial assets at
FVTPL and financial liabilities at FVTPL are recognized in profit or loss.
b. Non-derivative financial assets
Non-derivative financial assets are classified into “financial assets at FVTPL,” “held-to-maturity investments,”“loans and receivables,” and “available-for-sale financial assets.” The classification depends on the natureand purpose of the financial assets and is determined at initial recognition.
All purchase and sales of financial assets made in a regular way are recognized and derecognized on a tradedate basis. The purchase and sales made in a regular way refer to acquiring or disposing financial assets undera contract that requires the delivery of assets within a time frame established by regulation or convention in themarketplace.
(a) Financial assets at FVTPL
Financial assets are classified as “financial assets at FVTPL” when they are held for trading purposes ordesignated as financial assets at FVTPL.
Financial assets other than derivatives, which are mainly acquired to be sold in the short term, are classified
as held for trading purposes.
The Company designates a financial asset as a financial asset at FVTPL upon initial recognition, if:・the financial assets are managed in accordance with the Company’s documented risk management policy
or investment strategy; and・its performance is reviewed on the fair value basis by the Company’s management to make decisions
about the investment plan.
Also, while it is required to separate an embedded derivative from its host, when it is unable to measure theembedded derivative separately either at acquisition or at the end of a subsequent financial reporting period,
the entire hybrid contract is designated and accounted for as financial assets at FVTPL.
Subsequent to initial recognition, financial assets at FVTPL are measured at fair value. Gains or losses
arising from changes in fair value, dividend income and interest income are recognized in profit or loss.
(b) Held-to-maturity investments
Non-derivative financial assets with fixed or determinable payments and fixed maturity dates that theCompany has the positive intent and ability to hold to maturity are classified as “held-to-maturity
investments.”
Subsequent to initial recognition, held-to-maturity investments are measured at amortized cost using theeffective interest method, less any impairment. Interest income based on the effective interest rate isrecognized in profit or loss.
(c) Loans and receivables
Non-derivative financial assets with fixed or determinable payments that are not quoted in an active market
are classified as “loans and receivables.”Subsequent to initial recognition, loans and receivables are measured at amortized cost using the effective
interest method, less any impairment. Interest income based on the effective interest rate is recognized in
profit or loss.
(d) Available-for-sale financial assets
Non-derivative financial assets are classified as “available-for-sale financial assets,” if:・they are designated as “available-for-sale financial assets”; or・they are classified neither as “financial assets at FVTPL,” “held-to-maturity investments,” nor as “loans
and receivables.”56SoftBank Group Corp. Consolidated Financial Report
For the fiscal year ended March 31, 2016

Subsequent to initial recognition, available-for-sale financial assets are measured at fair value and gains orlosses arising from changes in fair value are recognized in other comprehensive income. Exchange
differences arising on monetary financial assets classified as available-for-sale financial assets, interest
income calculated using the effective interest method relating to available-for-sale financial assets anddividends received are recognized in profit or loss.
(e) Impairment of financial assets
Among financial assets other than those at FVTPL, available-for-sale equity instruments are assessed forany objective evidence of impairment at the end of the fiscal year and at the end of each quarter, and theother assets are assessed for any objective evidence of impairment at the end of the fiscal year. Financial
assets are impaired when there is objective evidence that loss events occurred subsequent to initialrecognition of the financial assets and when estimated negative future cash flows of the financial assets fromthose events can be reasonably estimated.
For available-for-sale equity instruments, a significant or prolonged decline in the fair value below the cost
is considered to be objective evidence of impairment. In addition, objective evidence of impairment of all
financial assets could include:・significant financial difficulty of the issuer or borrower;・breach of contract, such as a default or delinquency in interest or principal payments;
・high possibilities of borrowers’ bankruptcy or entering financial reorganization; or・disappearance of an active market for the financial assets.
The Company assesses the existence of objective evidence of impairment individually for separately
significant assets or collectively for assets with no individual significance.
When there is objective evidence of impairment on loans and receivables or held-to-maturity investments,
the difference between the asset’s carrying amount and the present value of estimated future cash flows,
discounted at the original effective interest rate, is recognized in profit or loss as an impairment loss. The
impairment loss is recognized through the use of an allowance account, and the carrying amount of a loan
and receivable is written off against the allowance account when it is considered uncollectible.
The carrying amount of held-to-maturity investments is reduced by the impairment loss directly. If, in a
subsequent period, the amount of the impairment loss decreases and the decrease can be related objectively
to an event occurring after the impairment was recognized, the previously recognized impairment loss isreversed through profit or loss to the extent that the carrying amount of the financial asset does not exceed
what the amortized cost would have been, had the impairment not been recognized.
When there is objective evidence that an available-for-sale financial asset is impaired, previously
recognized accumulated other comprehensive income is transferred to profit or loss. Impairment losses on
equity instruments classified as available-for-sale financial assets are not reversed.
(f) Derecognition of financial assets
The Company derecognizes a financial asset when the contractual rights to the cash flows from the financial
asset expire or when it transfers the financial asset and substantially all the risks and rewards of ownershipof the financial asset.
c. Non-derivative financial liabilities
The Company’s non-derivative financial liabilities include interest-bearing debt and trade and other payables.
These financial liabilities are measured at amortized cost using the effective interest method, subsequent toinitial recognition.
The Company derecognizes financial liabilities when the Company’s obligations are discharged, canceled or
expired.

57

SoftBank Group Corp. Consolidated Financial Report
For the fiscal year ended March 31, 2016

d. Derivatives and hedge accounting(a) Derivatives
The Company is engaged in derivative transactions, including foreign currency forward contracts andcurrency swaps in order to manage its exposure to foreign exchange rate and interest rate risks.
Derivatives are initially recognized at fair value at the date the derivative contracts are entered into and aresubsequently measured at their fair values at the end of fiscal year. Changes in the fair value of derivative
are recognized in profit or loss immediately unless the derivative is designated and effective as a hedging
instrument. Derivative financial assets not designated as hedging instruments are classified into “financial
assets at FVTPL” and derivative financial liabilities not designated as hedging instruments are classified
into “financial liabilities at FVTPL.”(b) Hedge accounting
The Company designates certain derivative transactions as hedging instruments and accounts for them ascash flow hedges.
At the inception of the hedge, the Company formally designates and documents the hedge relationshipqualifying for hedge accounting, along with its risk management objectives and its strategy for undertaking
various hedge transactions. At the inception of the hedge and on an ongoing basis, the Company evaluates
whether the hedging instrument is highly effective in offsetting changes in fair values or cash flows of therelevant hedged item during the underlying period.
The effective portion of changes in the fair value of derivatives that are designated and qualifying as cash
flow hedges is recognized in other comprehensive income and accumulated in equity. Accumulated othercomprehensive income is transferred to profit or loss through a line item relating to the hedged item in the
consolidated statement of income, in the periods when the cash flows from the hedged item affect profit orloss. Any ineffective portion of changes in fair value of derivatives is recognized immediately in profit orloss.
When the hedged forecasted transaction subsequently results in the recognition of a non-financial asset or a
non-financial liability, the Company removes the associated gains or losses previously recognized inaccumulated other comprehensive income and includes them in the initial amount of the cost of thenon-financial asset or non-financial liability (basis adjustment).
Hedge accounting is discontinued when the Company revokes the hedging relationship, when the hedging
instrument expires or is sold, terminated or exercised or when hedge no longer meets the criteria for hedge
accounting.
When hedge accounting is discontinued, any gains or losses recognized in accumulated othercomprehensive income remains in equity and is reclassified to profit or loss when the forecasted transaction
is ultimately recognized in profit or loss. When a forecasted transaction is no longer expected to occur,
the gains or losses recognized in accumulated other comprehensive income are reclassified immediately to
profit or loss.
(c) Embedded derivatives
Derivatives embedded in non-derivative host contracts (“embedded derivatives”) are separated from thehost contracts and accounted for as separate derivatives when their economic characteristics and risks are
not closely related to those of the host contracts and the whole financial instruments, including embedded
derivatives, are not measured at FVTPL. While it is required to separate an embedded derivative from its
host, when it is unable to measure the embedded derivative separately either at acquisition or at the end of asubsequent financial reporting period, the entire hybrid contract is designated and accounted for as financial
assets at FVTPL.
e. Offsetting financial assets and financial liabilities
Financial assets and financial liabilities are offset, and the net amounts are presented in the consolidated
statement of financial position when, and only when, the Company currently has a legally enforceable right to58

SoftBank Group Corp. Consolidated Financial Report
For the fiscal year ended March 31, 2016set off the recognized amounts, and intends either to settle on a net basis or to realize the assets and settle theliabilities simultaneously.
(5) Cash and cash equivalents
Cash and cash equivalents consist of cash, demand deposits and short-term investments with maturities of threemonths or less that are readily convertible to cash and subject to insignificant risk of change in value.
(6) Inventories
Inventories are stated at the lower of cost or net realizable value. Inventories mainly consist of mobile handsets
and accessories. Their costs comprise all costs of purchase and other costs incurred in bringing the inventories
to their present location and condition. The costs are mainly calculated by the moving-average method.
Net realizable value is the estimated selling price in the ordinary course of business, less estimated costs
necessary to make the sale.
(7) Property, plant and equipment
Property, plant and equipment are measured on a historical cost basis, less accumulated depreciation andaccumulated impairment losses. Historical cost includes costs directly attributable to the acquisition of the asset
and the initial estimated costs related to disassembly, retirement and site restoration.
Property, plant and equipment are depreciated mainly using the straight-line method over the estimated useful
lives of each component. The depreciable amount is calculated as the cost of an asset, less its residual value.
Land and construction in progress are not depreciated.
The estimated useful lives of major components of property, plant and equipment are as follows:
Buildings and structures
Buildings

12 - 50 years

Other

5 - 15 years

Telecommunications equipment
Wireless equipment, switching equipment,
and other network equipment

5 - 30 years

Towers15 - 42 years

Other

5 - 40 years

Equipment and fixtures
Leased mobile devices

2 - 3 years

Other

4 - 10 years

The depreciation methods, useful lives, and residual values of assets are reviewed at the end of each fiscal year,
and any changes are applied prospectively as a change in an accounting estimate.
Assets held under finance leases are depreciated over their estimated useful lives when there is certainty thatownership will be obtained by the end of the lease term. However, when there is no certainty that ownershipwill be obtained by the end of the lease term, assets are depreciated over the shorter of the lease term or theirestimated useful lives.
(8) Goodwill
Please refer to “(2) Business combinations” in “Note 3. Significant accounting policies” for the measurement of
goodwill at initial recognition. Goodwill is measured at cost less accumulated impairment losses.
Goodwill is not amortized, and is tested for impairment when there is an indication of impairment incash-generating units or groups of cash-generating units to which goodwill has been allocated, and annuallyregardless of any indication of impairment. Impairment is described in “(11) Impairment of property, plant andequipment, intangible assets and goodwill” in “Note 3. Significant accounting policies.”

59

SoftBank Group Corp. Consolidated Financial Report
For the fiscal year ended March 31, 2016

The Company’s policy for goodwill arising from the acquisition of an associate is described in “(1) Basis of
consolidation” in “Note 3. Significant accounting policies.”(9) Intangible assets
Intangible assets are measured on a historical cost basis at cost, less accumulated amortization and accumulated
impairment losses.
Intangible assets acquired separately are measured at cost at initial recognition. Intangible assets acquired in abusiness combination are recognized separately from goodwill at initial recognition and are measured at fair value
at the acquisition date. Any internally generated research and development expenditure is recognized as an
expense in the period in which it is incurred, except for expenditures on development activities eligible forcapitalization (internally generated intangible assets). The amount initially recognized for internally generated
intangible assets is the sum of the expenditure incurred from the date when the intangible asset first meets all of
the capitalization criteria to the date the development is completed.
There are intangible assets with finite useful lives and intangible assets with indefinite useful lives.
The intangible assets with finite useful lives are amortized over the estimated useful lives. Amortization of thecustomer relationships is mainly calculated by the sum-of-the-digits method and intangible assets with finite
useful lives other than customer relationships are amortized by the straight-line method.
The estimated useful lives of major categories of intangible assets with finite useful lives are as follows:
Software
Software related to wireless equipment

5 - 10 years

Other

3 - 5 years

Customer relationships

4 - 24 years

Favorable lease contracts

3 - 23 years

Game titles

5 years

Trademarks (with finite useful lives)

34 years

Spectrum migration costs

18 yearsOther

4 - 20 years

Amortization methods, useful lives and residual values of assets are reviewed at the end of each fiscal year, andany changes are applied prospectively as a change in an accounting estimate.
Favorable lease contracts are recognized as intangible assets based on the estimated fair value of the favorable
portion of future cash flows if, at the time of business combinations, the terms of operating lease contracts inwhich the acquiree is the lessee are favorable compared to market terms.
Spectrum migration costs are the amounts that the Company incurred in connection with the costs arising from themigration of the existing users from the 900 MHz band, which SoftBank Mobile Corp. acquired, to the otherfrequency spectrum based on the termination campaign. Useful lives are estimated based on the actual
utilization of the frequency spectrum in the past.
Intangible assets with indefinite useful lives are as follows:・Licenses using specific frequency spectrum granted by the U.S. Federal Communications Commission (“FCClicenses”)
・Trademarks (with indefinite useful lives)
As long as the Company acts within the requirements of the regulatory authorities, the renewal and extension of
FCC licenses are reasonably certain at minimal cost. Therefore, it is determined that FCC licenses haveindefinite useful lives.

60SoftBank Group Corp. Consolidated Financial Report
For the fiscal year ended March 31, 2016

The Company determined that “Sprint”, “Boost Mobile” and other trademarks have indefinite useful lives as they
can be legally used continuously as long as the business continues and management’s current plans are to offer
service under these trademarks for the foreseeable future.
The intangible assets with indefinite useful lives and the intangible assets that are not yet available for use are notamortized. The impairment of these assets is described in “(11) Impairment of tangible assets, intangible assets
and goodwill” in “Note 3. Significant accounting policies.”(10) Leases
The assessment of whether an arrangement is a lease or contains a lease is made on a basis of all the facts andcircumstances at the inception of the arrangement.
Leases are classified as finance leases whenever all the risks and rewards of ownership of assets are substantiallytransferred to the lessee. All other leases are classified as operating leases. It is determined that all the risks
and rewards of ownership of assets are transferred to the lessee when the lease terms account for most of theeconomic useful lives of the assets, or the present values of the total minimum lease payments are almost equal to
the fair values of the assets. The lease terms are the total of the non-cancelable period and the period which isdeemed to be reasonably certain that the renewal option will be exercised at the inception of the leases.
a. Finance leases(The Company as lessee)
At inception, the Company initially recognizes finance leases as assets and the lease obligation at the amountequal to the fair value of the leased property or, if lower, at the present value of the minimum lease payments.
Subsequent to initial recognition, the accounting policy for assets held under finance leases is consistent withthat of assets that are owned. Lease payments are apportioned between finance cost and reduction of the leaseobligation so as to achieve a constant rate of interest on the remaining balance of the liability.
b. Operating leases(The Company as lessee)
Gross operating lease payments are recognized as expenses on a straight-line basis over the relevant lease terms.
(The Company as lessor)
Gross operating lease incomes are recognized as revenues on a straight-line basis over the relevant lease terms.
(11) Impairment of property, plant and equipment, intangible assets and goodwill
a. Impairment of property, plant and equipment and intangible assets
At the end of the fiscal year, the Company determines whether there is any indication that property, plant andequipment and intangible assets may be impaired.
If any such indication exists, the recoverable amount of the asset is estimated. When it is not possible toestimate the recoverable amount of an individual asset, the Company estimates the recoverable amount of the
cash-generating unit to which the asset belongs. A cash-generating unit is the smallest identifiable group ofassets that generates cash inflows that are largely independent of the cash inflows from other assets or groups ofassets.
The intangible assets with indefinite useful lives and the intangible assets that are not yet available for use aretested for impairment annually regardless of whether there is any indication of impairment.
The recoverable amount is the higher of fair value less costs to sell or value in use. In assessing value in use,
the estimated future cash flows are discounted to their present value using a pretax discount rate that reflects thetime value of money and the risks specific to the asset.
If the recoverable amount of an asset or cash-generating unit is estimated to be less than its carrying amount, thecarrying amount of the asset or cash-generating unit is reduced to its recoverable amount, and an impairment
loss is recognized in profit or loss.

61

SoftBank Group Corp. Consolidated Financial Report
For the fiscal year ended March 31, 2016

At the end of the fiscal year, the Company evaluates whether there is any indication that an impairment loss
recognized in prior years for assets other than goodwill has decreased or extinguished. If such indication of areversal of an impairment loss exists, the recoverable amount of the asset or cash-generating unit is estimated.
If the recoverable amount of an asset or cash-generating unit is estimated to be higher than its carrying amount,a reversal of an impairment loss is recognized, to the extent that the increased carrying amount does not exceed
the lower of the recoverable amount or the carrying amount (less depreciation and amortization) that would
have been recognized, had no impairment loss been recognized.
b. Impairment of goodwill
At the end of the fiscal year and at the end of each quarter, the Company determines whether there is any
indication that goodwill may be impaired.
Goodwill is allocated to each of the cash-generating units or groups of cash-generating units that are expected
to benefit from the synergies arising from the business combination, and it is tested for impairment annuallyregardless of any indication of impairment, and when there is an indication that the cash-generating unit orgroups of cash-generating units may be impaired. If, at the time of the impairment test, the recoverable
amount of the cash-generating unit or groups of cash-generating units is less than its carrying amount, theimpairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the cash-generating
unit or groups of cash-generating units and then to the other assets pro rata based on the carrying amount ofeach asset in the unit or groups of cash-generating units.
Any impairment loss for goodwill is recognized directly in profit or loss and is not reversed in subsequent
periods.
(12) Retirement benefits
Defined contribution plans are post-employment benefit plans under which an employer pays fixed contributions
into a separate fund and will have no legal or constructive obligations to pay further contributions. Defined benefit
plans are post-employment benefit plans other than defined contribution plans.
The Company primarily adopts defined contribution pension plans.
SoftBank Corp. has frozen its defined benefit lump-sum plans since March 2006 and 2007. Liabilities for thefrozen defined benefit lump-sum plans are recognized as defined benefit liabilities until they are paid in the formof a lump sum at the time of future retirement of employees.
Sprint has frozen its defined benefit pension plans since December 2005. Liabilities for the defined benefit
pension plans are recognized as defined benefit liabilities until they are paid as pensions after the time ofretirement of employees.
a. Defined contribution plans
Contributions paid for defined contribution plans are recognized as expenses in the period in which theemployees render the related service. Contributions payable are recognized as liabilities.
b. Defined benefit plans
The liability recognized in respect of the defined benefit plans (the defined benefit liability) is the present valueof the defined benefit obligation less the fair value of plan assets at the end of the fiscal year.
The defined benefit obligation is determined by independent actuaries using the projected unit credit method,and its present value is determined by applying a discount rate based on the yield curve of high-quality
corporate bonds over the approximate period of the benefit payments.
Defined benefit cost includes service cost, net interest on the net defined benefit liability (asset), andre-measurements of the net defined benefit liability (asset). Service cost and net interest are recognized in net
profit or loss. Net interest is determined using the discount rate described above.

62

SoftBank Group Corp. Consolidated Financial Report
For the fiscal year ended March 31, 2016

The liabilities for the frozen defined benefit plans are calculated on the basis of retirement benefits vested at thetime the plans were frozen. Therefore, service cost is not incurred for those defined benefit plans.
The Company’s remeasurements, which comprise actuarial gains and losses and the return on plan assets(excluding amounts included in net interest), are recognized in other comprehensive income and transferred toretained earnings immediately from accumulated other comprehensive income.
(13) Provisions
Provisions are recognized when the Company has a present legal or constructive obligation as a result of a past
event, it is probable that the Company will be required to settle the obligation, and a reliable estimate can be madeof the amount of the obligation.
Provisions are measured using the estimated future cash flows, discounted using a pretax rate reflecting the timevalue of money and the specific risks of the liability, after taking into account the risks and uncertainties
surrounding the obligation at the end of the fiscal year.
The Company recognizes asset retirement obligations, restructuring provision, provision for loss on interest
repayment, and provision for onerous contract as provisions.
Restructuring provisions are recognized when the Company has a detailed formal plan for the restructuring andhas raised a valid expectation to those who will be affected that the Company will carry out the restructuring bystarting to implement the plan or announcing the main features of the plan.
Provision for loss on interest repayment is recorded based on an amount representing future expected claims inorder to prepare for future claims by debtors and other, for repayment of interest paid in excess of the rate
permitted under the Interest Rate Restriction Act.
(14) Treasury stock
When the Company acquires its own equity share capital (“treasury stock”), the consideration paid, including any
directly attributable increments costs (net of income taxes), is deducted from equity. No gain or loss isrecognized on the purchase, sale, or cancellation of the treasury stock. The difference between the carrying
amount and the consideration on sale is recognized as capital surplus.
(15) Share-based payments
The Company grants stock options and restricted stock unit awards as equity-settled share-based compensationand cash-settled share-based compensation.
Equity-settled share-based compensation is measured at fair value at the grant date. The fair value of stock
options is calculated using the Black-Scholes model and other, and the fair value of restricted stock units is
calculated using the share price at the date of grant.
The fair value determined at the grant date is expensed over the vesting period, based on the estimate of stock
options or restricted stock units that will eventually vest, with a corresponding increase in equity.
The Company regularly reviews the assumptions made and revises estimates of the number of stock options or
restricted stock units that are expected to vest, when necessary.
Cash-settled share-based compensation is accounted for as liabilities and is measured initially at the fair value ofthe award. The fair value of the liabilities is remeasured on each closing date and the settlement date, andchanges in fair values are recognized in profit or loss.
(16) Revenue
The Company’s accounting policy for revenue recognition by major categories is as follows:
Domestic Telecommunications segment and Sprint segment
a. Mobile Communications service and sales of mobile handsets
The Company provides mobile telecommunications services, which consist of voice communications and datatransmission to subscribers, and also sells mobile handsets and accessories to customers.

63

SoftBank Group Corp. Consolidated Financial Report
For the fiscal year ended March 31, 2016

In the Mobile Communications service, revenues are mainly generated from basic monthly charges, telecom
service (“revenues from the mobile telecommunications service”) and other fees. Also, revenues from the saleof mobile handsets (“revenues from the sale of mobile handsets”) are generated from the sale of mobile
handsets and accessories to subscribers or dealers.
The business flow of the above transactions consists of “Indirect sales,” where the Company sells mobile
handsets to dealers and enters into telecommunications services contracts with subscribers through dealers, and“Direct sales,” where the Company sells mobile handsets to subscribers and enters into telecommunications
services contracts directly with subscribers. The revenues are recognized respectively as follows.
(a) Indirect sales
Revenues from the sale of mobile handsets are recognized when mobile handsets are delivered to dealers,
which is when risk and economic value are deemed to be transferred. Commission fees paid to dealers
related to the sales of mobile handsets are deducted from revenues.
The mobile telecommunications services are recognized as revenue when services are provided tosubscribers. Discounts are deducted from revenues from monthly mobile telecommunications services as a
discount of mobile telecommunications charges.
Activation fees are deferred upon entering into the contract and recognized as revenues over the estimatedaverage contract period. Upgrade fees are recognized as revenues over the estimated average usage periodof handsets with the subscribers. Direct costs related to activation are deferred to the extent of theactivation fees and upgrade fees and are amortized over the respective same period.
(b) Direct sales
In direct transactions, as the revenue from the sales of mobile handsets and the mobile telecommunications
services, including the fees, are considered to be one transaction, the total amount of revenues is allocated tomobile handsets and telecommunications service on the basis of fair value ratio.
When handsets are sold in installments, revenue from the sales of mobile handsets is recognized based on thefair value ratio when handsets are delivered to the subscribers. When handsets are sold in lump-sum
payment, the maximum amount of revenues to be recognized by the sale of mobile handsets is set by theamounts to be received from subscribers at the sales of mobile handsets. The amount of revenue allocatedto the mobile telecommunication services is recognized when the service is provided to the subscribers.
The previous point program operated by the Company has been transferred to the point program operated bya third party since July 2014. In the previous point program, points were granted to subscribers based on
the billing amount from mobile telecommunications services revenue from both direct and indirect sales.
The fair values of benefits to be exchanged based on the estimated point utilization rate were deferred andrecognized as revenues when subscribers utilized the points.
In the point program operated by the third party, points are granted to subscribers based on the received
amounts received from mobile telecommunications services revenue from both direct and indirect sales.
The fair values of the points are deferred when the services are provided to subscribers and recognized asrevenues when the points are granted to the subscribers.
b. Fixed-line Telecommunications service
In the Fixed-line Telecommunications service, revenues are generated mainly from voice communications anddigital data transmission services, internet provider charges, ADSL service fees, IP telephony service fees, andthe usage of the network (“revenues from fixed-line telecommunications service”).
Revenues from fixed-line telecommunications services are recognized as revenues when services are provided
to subscribers, based upon fixed monthly charges plus the usage of the network.
Yahoo Japan segment
In the Yahoo Japan segment, revenues are generated mainly from sponsored search advertising, display
advertising, e-commerce related commission fees, revenue from membership and product sales.

64SoftBank Group Corp. Consolidated Financial Report
For the fiscal year ended March 31, 2016

Sponsored search advertising revenue is recognized when a visitor of the website clicks the advertisement.
Display advertising comprises premium advertising, Yahoo! Display Ad Network (“YDN”) and other.
Revenue from premium advertising is recognized over a period in which related advertisement is displayed.
Revenue from YDN is recognized when a visitor of the website clicks the advertisement on the page with therelated content. Revenue from e-commerce-related commission fees is recognized when the transaction occurs.
Revenue from membership fees is recognized over an effective period of the membership. Revenue fromproduct sales is recognized when the significant risks and rewards of ownership of the products are transferred tothe buyer, the Company retains neither continuing managerial involvement nor effective control over the
products sold, it is probable that the economic benefits associated with the transaction will flow to the Company,
and the costs incurred and the amount of revenue related to the transaction can be measured reliably.
Distribution segment
In the Distribution segment, revenues are generated mainly from distribution of mobile handsets totelecommunication service providers and retailers overseas, and sales of PC software, peripherals, and mobile
handsets accessories in Japan. Revenue in the Distribution segment is recognized when the significant risks
and rewards of ownership of the products are transferred to the buyer, the Company retains neither continuingmanagerial 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. For transactions conducted by the Company on behalf ofthird parties, revenue is presented on net basis by excluding payment to third parties from the total consideration
received from customers.
(17) Sales commission fees
The Company pays sales commission fees when dealers sell the Company’s mobile handsets to subscribers or
acquire and retain engagement of telecommunications service between the Company and subscribers.
Commission fees related to the sales of mobile handsets are deducted from the revenues from the sales of mobile
handsets. Commission fees related to the acquisition and retention of engagement of telecommunications
service are recognized as selling, general and administrative expenses.
(18) Income tax
Income tax expense is composed of current and deferred taxes, and recognized in profit or loss, except for taxes
related to business combinations and taxes related to items that are recognized in other comprehensive income or
directly in equity.
Current tax is measured at the amount expected to be paid to or recovered from the taxation authorities, using the
tax rates and tax laws that have been enacted or substantively enacted by the end of the fiscal year.
Deferred tax assets are recognized to the extent that it is probable that taxable profits will be available against
which deductible temporary differences, net operating loss carryforwards and tax credit carryforwards can beutilized. The recoverability of deferred tax assets is reassessed at the end of the fiscal year.
Deferred tax assets are not recognized for temporary differences from initial recognition of assets and liabilities
that do not arise from business combinations and that do not impact accounting profit or taxable income.
Deferred tax assets are recognized for deductible temporary differences associated with investments in
subsidiaries and associates when it is probable that the temporary difference will reverse in the foreseeable future
and when there will be sufficient taxable profits against which the temporary differences can be utilized.
Deferred tax liabilities are basically recognized for taxable temporary differences, except for:・temporary differences arising from the initial recognition of assets and liabilities, and related transactions otherthan business combinations, that affect neither the accounting profit nor the taxable profit;・taxable temporary differences arising from the initial recognition of goodwill; and・taxable temporary differences associated with investments in subsidiaries and associates, where the Company isable to control the reversal of the temporary difference and it is probable that the temporary difference will notreverse in the foreseeable future.

65

SoftBank Group Corp. Consolidated Financial Report
For the fiscal year ended March 31, 2016

Deferred tax assets and liabilities are measured at the tax rates that are expected to apply to the period when theasset is realized or the liability is settled, based on tax laws that have been enacted or substantively enacted by theend of the fiscal year.
Deferred tax assets and liabilities are offset if the Company has a legally enforceable right to set off current tax
assets against current tax liabilities, and income taxes are levied by the same taxation authority on the same
taxable entity.
(19) Earnings per share
Basic earnings per share are calculated by dividing net income attributable to owners of the parent by theweighted-average number of ordinary shares (after adjusting for treasury stocks) outstanding for the period.
Diluted earnings per share assume full conversion of the issued potential stocks having a dilutive effect, with an
adjustment for net income attributable to owners of the parent and the weighted-average number of ordinary
shares (after adjusting for treasury stocks) outstanding for the period.

4. Significant judgments and estimates
In preparing consolidated financial statements under IFRSs, management makes judgments, estimates, andassumptions that affect the application of accounting policies and carrying amounts of assets, liabilities, revenue, andexpenses. These estimates and underlying assumptions are based on the management’s best judgments, through theirevaluation of various factors that were considered reasonable as of the period-end, based on historical experience andby collecting available information. By the nature of its estimates or assumptions, however, actual results in the
future may differ from those estimates or assumptions.
Estimates and underlying assumptions are continuously reviewed. Revisions to accounting estimates are recognizedin the period in which the estimate is revised as well as in the future periods.
Significant judgments, estimates and assumptions that affect the amounts recognized in the Company’s consolidated
financial statements are as follows:・judgments of whether an entity is controlled by the Company in the decision making on the scope of consolidation ((1)
in “Note 3. Significant accounting policies”);
・significant judgments for the determination of a joint venture ((1) in “Note 3. Significant accounting policies” and“Note 7. Handset sale-leaseback”);
・estimates for impairment of investments accounted for using the equity method ((1) in “Note 3. Significant accounting
policies” and “Note 17. Other non-operating income (loss)”);・estimates of fair value of assets acquired and the liabilities assumed in a business combination ((2) in “Note 3.
Significant accounting policies” and “Note 6. Business combinations”);
・fair value measurement of financial assets at FVTPL and available-for-sale financial assets ((4) in “Note 3. Significant
accounting policies” and “Note 17. Other non-operating income (loss)”);・estimates for impairment of financial assets measured at amortized cost ((4) in “Note 3. Significant accounting policies”
and “Note 17. Other non-operating income (loss)”);・estimates of residual value and useful life of property, plant and equipment and intangible assets ((7) and (9) in “Note 3.
Significant accounting policies”);
・judgments and estimates for accounting treatment of contracts including leases ((10) in “Note 3. Significant accounting
policies”);
・estimates for impairment of property, plant and equipment, intangible assets and goodwill ((11) in “Note 3. Significant
accounting policies” and “Note 14. Other operating loss”);
・measurement of defined benefit obligation ((12) in “Note 3. Significant accounting policies”);
・judgments and estimates for recognition and measurement on provisions ((13) in “Note 3. Significant accounting
policies”);
・assessment of recoverability of deferred tax assets ((18) in “Note 3. Significant accounting policies”); and・recognition of liabilities and expenses related to contingencies (“Note 14. Other operating loss”).
66SoftBank Group Corp. Consolidated Financial Report
For the fiscal year ended March 31, 2016

5. 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 the resources and assess its performance.
The Company had four segments, the Mobile Communications segment, the Sprint segment, the Fixed-line
Telecommunications segment, and the Internet segment for the fiscal year ended March 31, 2015. In line withthe transformation into “SoftBank 2.0” from a strong Japanese business with global assets to a global businessthat will strive to create sustainable growth over the long term, the Company revised its segments. The
Domestic telecommunications segment, the Sprint segment, the Yahoo Japan segment, and the Distribution
segment are the four reportable segments from the fiscal year ended March 31, 2016.
The Domestic Telecommunications segment provides, mainly through SoftBank Corp. (formerly SoftBank
Mobile 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 retailcustomers in Japan.
The Sprint segment provides, through Sprint, mobile communications services, sale and lease of mobile devices,and 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, mainly through Brightstar, distribution of mobile devices overseas, andthrough SoftBank Commerce & Service Corp., sale of mobile device accessories, PC software and peripherals inJapan.
The reportable segments for the fiscal year ended March 31, 2015 are presented based on the revised reportablesegments.
(2) Net sales and income of reportable segments
Accounting policies for reportable segments are the same as the policies described in “Note 3. Significant
accounting policies.”
Income of reportable segments is defined as “Operating income.”
The Company had defined the income of reportable segments as the amount after deducting “Cost of sales” and“Selling, general and administrative expenses” from “net sales” until the fiscal year ended March 31, 2015. In
connection with the revision of the segments, the Company defined its income of reportable segments as“Operating income” from the fiscal year ended March 31, 2016.
Income of reportable segments for the fiscal year ended March 31, 2015 is also defined as “Operating income.”
Intersegment transaction prices are determined under the same general business conditions as applied for externalcustomers.
The following is the information about the Company’s net sales and income by reportable segment.
The Company also discloses EBITDA (segment income and loss + depreciation and amortization) and adjusted
EBITDA (EBITDA – gain from remeasurement relating to business combination ± other operating income andloss) by each reportable segment.
Financial cost, income and loss on equity method investments, dilution gain from changes in equity interest, andother non-operating income and loss are not managed by each reportable segment and therefore these income andlosses are excluded from the segment performance.

67SoftBank Group Corp. Consolidated Financial Report
For the fiscal year ended March 31, 2016

For the fiscal year ended March 31, 2015
(Millions of yen)
Reportable segments
Domestic
Telecommunications

Sprint

Yahoo
Japan

Distribution

Total

Other1

Customers

2,985,644

3,594,167

420,385

1,170,437

8,170,633

333,502-

Intersegment

33,749205,854

6,936

54,679301,218

22,579(323,797)-

3,019,393

3,800,021

427,3211,225,116

8,471,851

356,081(323,797)

8,504,135

640,498

66,859193,529

4,952

905,838

54,341(41,459)

918,720

Reconciliations2

Consolidated

Net sales

Total
Segment income(Operating income)

8,504,135

Reconciliation from segment income to adjusted EBITDA
640,498

66,859193,529

4,952

905,838

54,341(41,459)

918,720453,728

579,152

18,364

10,2481,061,492

32,243

1,510

1,095,245

EBITDA
Other operating (income)loss

1,094,226

646,011

211,893

15,2001,967,330

86,584(39,949)

2,013,965

21,271

7,029

-

(607)

27,693(25)-

27,668Adjusted EBITDA

1,115,497

653,040

211,893

14,593

1,995,023

86,559(39,949)

2,041,633

Segment income
Depreciation andamortization

For the fiscal year ended March 31, 2016
(Millions of yen)
Reportable segments
Domestic
Telecommunications

Sprint

Yahoo
Japan

Distribution

Total

Other1

Customers

3,106,855

3,688,498

642,880

1,345,856

8,784,089

369,460-

9,153,549

Intersegment

37,795

183,149

9,151

74,560304,655

21,280(325,935)-

3,144,650

3,871,647

652,0311,420,416

9,088,744

390,740(325,935)

9,153,549

688,389

61,485

222,787(1,284)

971,377

73,271(45,160)

999,488

Reconciliations2

Consolidated

Net sales

Total
Segment income (loss)(Operating income (loss))

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

688,389

61,485

222,787(1,284)

971,377

73,271(45,160)

999,488

Depreciation andamortization

474,948

842,110

32,695

10,2681,360,021

34,944

1,636

1,396,601

EBITDA
Gain from remeasurement
relating to businesscombination
Other operating loss3

1,163,337

903,595

255,482

8,984

2,331,398

108,215(43,524)

2,396,089--(59,441)-(59,441)--(59,441)-

79,668-16,466

96,134

6,086-

102,220

Adjusted EBITDA

1,163,337

983,263

196,041

25,4502,368,091

114,301(43,524)

2,438,868

Notes:
1. Information on the business segments which are not included in the reportable segments is classified in “Other.” “Other” includes
mainly online game-related business by Supercell.
2. “Reconciliations” includes an elimination of intersegment transactions and the corporate general expenses unallocated to each reportablesegment. 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.
3. ¥37,032 million of “Loss on disposal of property, plant and equipment” recognized as “Other operating loss” in the consolidated
statements of income for the fiscal year ended March 31, 2016 is not included in “Other operating loss” in the Sprint segment. The
details are described in “Note 14. Other operating loss.”
4. Discontinued operations are not included. The details are described in “Note 18. Discontinued operations.”

68SoftBank Group Corp. Consolidated Financial Report
For the fiscal year ended March 31, 2016

6. Business combinations
For the fiscal year ended March 31, 2016
(1) ASKUL Corporation
a. 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 ASKULCorporation’s acquisition of its own treasury stock, the ownership ratio of ASKUL Corporation’s voting rights
held by the Company rose from 41.7% (as of May 20, 2015) to 44.4% (as of August 27, 2015). The Company
did not yet hold 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 pastshareholders meetings, etc., the Company judged that it has substantial control of ASKUL Corporation and hasconverted it to a consolidated subsidiary.

b. Summary of acquiree
NameBusiness description

ASKUL Corporation
Mail-order business for stationery, other products and servicesc. Acquisition dateAugust 27, 2015

d. 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 for the fiscal year ended March 31, 2016. This gain is presented as “Gain fromremeasurement relating to business combination” in the consolidated statements of income.

69SoftBank Group Corp. Consolidated Financial Report
For the fiscal year ended March 31, 2016

e. 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
69,124
8,394
199,949

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

71,49534,586
106,081

Current liabilities
Non-current liabilities
Total liabilities
Net assets

B

93,868Non-controlling interests2
Goodwill3

C54,036
53,779A-(B-C)

Notes:
1. Adjustment of the provisional amount
Consideration transferred is allocated to acquired assets and assumed liabilities based on the fair value on theacquisition date. Allocation of the consideration transferred was completed during the three-month period ended
December 31, 2015. The details of the adjustments from the initial provisional amounts are as follows. Due to theadditional analysis on the fair value of ASKUL Corporation, intangible assets decreased by ¥2,820 million andnon-controlling interests decreased by ¥1,097 million. As a result, goodwill increased by ¥877 million.
2. 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.
3. Goodwill
Goodwill reflects excess earning power expected from the future business development and the synergy between the
Company and the acquiree.

f. 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 subsidiary70

31,291
31,291

SoftBank Group Corp. Consolidated Financial Report
For the fiscal year ended March 31, 2016

g. Sales and net income of the acquiree
The amounts of the acquiree’s sales and net income before elimination of inter-company transactions after theacquisition date, which are recorded in the consolidated statements of income for the fiscal year ended March
31, 2016, are ¥189,013 million and ¥2,970 million, respectively.
In addition, the above net income includes amortization expenses, which are related to intangible assets
recognized at the acquisition date, and other.
(2) Ikyu Corporation
a. Overview of consolidation
The Company, for the purpose of ensuring the effectiveness of the growth through the e-Commerce Revolution
which is strategically important for Yahoo Japan Corporation, has been performing a tender offer for Ikyu
Corporation’s shares, etc., which was resolved in Yahoo Japan Corporation’s board of directors’ meeting held
on December 15, 2015. The tender offer ended on February 3, 2016 and Yahoo Japan Corporation has
acquired 27,480,682 shares of Ikyu Corporation’s common shares at ¥94,341 million in cash. Consequently,
the Company’s voting rights ratio for Ikyu Corporation has become 94.3% and Ikyu Corporation has been
converted to a consolidated subsidiary.
b. Summary of acquiree
NameBusiness description

Ikyu Corporation
Operation of various Internet sites that provide reservation services for hotels,
restaurants, and other.

c. Acquisition dateFebruary 3, 2016
d. Consideration transferred and the components(Millions of yen)

Payment by cashA

Total consideration transferred

Acquisition date(February 3, 2016)
94,341
94,341e. Fair values of assets and liabilities, non-controlling interests and goodwill on the acquisition date(Millions of yen)

Acquisition date(February 3, 2016)
8,934
26,1831,130
36,247

Current assets
Intangible assets
Other non-current assets
Total assets

4,270
8,177
12,447

Current liabilities
Non-current liabilities
Total liabilities
Net assets

B

23,800Non-controlling interests1
Goodwill2

C

1,503
72,044A-(B-C)71

SoftBank Group Corp. Consolidated Financial Report
For the fiscal year ended March 31, 2016

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.

f. Payment for acquisition of control over subsidiaries(Millions of yen)

Acquisition date(February 3, 2016)
Payment for the acquisition by cash
Cash and cash equivalents held by the acquiree at the time ofacquisition of control
Payment for the acquisition of control overthe subsidiary by cash

(94,341)
4,016(90,325)

g. Sales and net income of the acquiree
The amounts of the acquiree’s sales and net income after the acquisition date are immaterial.

72

SoftBank Group Corp. Consolidated Financial Report
For the fiscal year ended March 31, 2016

7. 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).
MLS was established for 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 contractuallyagreed that significant management policy and operating decision of MLS require the unanimous consent of its boardof directors designated by SBLS and JPLS. Accordingly, the Company accounts for MLS under the 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 a total amount of $1.3 billion, consisting of proceeds totaling $1.1
billion cash which was received in December 2015 and a deferred purchase price receivable of $0.1 billion, theremaining amount of the total proceeds, which will be settled at the end of the agreement. Simultaneously with thesale of the devices and transfer of certain specified customer lease end rights and obligations, MLS leased back eachdevice 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 andremarketing services to MLS with respect to the devices that are returned to MLS. The terms and conditions of thetransaction are negotiated and determined based on the market price and the content of transaction.
Sprint derecognized devices from property, plant and equipment when they were sold to MLS. The $65 million(¥7,801 million) difference between the fair value and the carrying amount of the devices sold was recognized as“Other operating loss” in the consolidated statements of income.
The proceeds received in December 2015 totaling $1.1 billion (¥137,593 million) were recognized as “Proceeds fromsales of property, plant and equipment, and intangible assets” in the consolidated statements of cash flows.
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 thetransaction.

73

SoftBank Group Corp. Consolidated Financial Report
For the fiscal year ended March 31, 2016

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

As ofMarch 31, 2015
44,660173,463
37,276
255,399

Tax receivable*
Prepaid expense
Other
Total

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

Note:*Withholding income tax of ¥293,489 million related to dividend within the group companies is included in tax receivable as ofMarch 31, 2016.

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

As ofMarch 31, 2015
267,633
3,251,673
365,305
97,342
318,345
17,1504,317,448

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

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

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

As ofMarch 31, 2015
Intangible assets with indefinite useful lives
FCC licenses
Trademarks
Intangible assets with finite useful lives
Software
Customer relationships
Favorable lease contracts
Spectrum migration costs
Game titles
Trademarks
Other
Total

74

As of
March 31, 2016

4,320,296
727,251

4,060,750
706,637

757,866
582,223
145,191
53,550109,21159,583
148,411
6,903,582

782,148439,800
119,242
110,472
59,84454,066106,186
6,439,145

SoftBank Group Corp. Consolidated Financial Report
For the fiscal year ended March 31, 2016

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

As ofMarch 31, 2015
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 preferred securities
Current portion of installment payables
Total
Non-current
Long-term borrowings
Corporate bonds
Lease obligations
Installment payables
Total

As of
March 31, 2016

413,846
32,000525,898
183,557
411,453
200,000
50,661
1,817,415

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

2,116,498
6,825,868
744,911
102,552
9,789,829

1,785,500
6,611,947
815,194
63,1819,275,822(2) Financial covenantsa. Financial covenants on interest-bearing debts of SoftBank Group Corp.
SoftBank Group Corp.’s interest-bearing debt includes financial covenants and the major financial covenants
are as follows.
(a) The amount of SoftBank Group Corp.’s net assets at the end of the fiscal year must not fall below 75% of
SoftBank Group Corp.’s net assets at the end of the previous year.
(b) The consolidated statement of financial position of the Company at the end of the fiscal year must not show
a net capital deficiency. The statement of financial position of SoftBank Corp. at the end of the fiscal year
must not show a net capital deficiency.
(c) In the Company’s consolidated financial statement, operating income (loss) or net income (loss) attributable
to the owner of the parent company must not result in losses for two consecutive years.
(d) Adjusted net interest-bearing debts1 or leverage ratios2 designated in the loan agreement must not exceed
certain respective amounts or numbers at the end of each annual reporting period and at the end of thesecond quarter. The threshold amounts of adjusted net interest-bearing debts and leverage ratios shall besoftened when the balance of cash and cash equivalents and the fair value of listed shares held by SoftBank
Group Corp. exceed certain amounts.
Notes:
1. Adjusted net interest-bearing debts:
Amounts deducting cash and cash equivalents from interest-bearing debts in the consolidated statement of financial
position. Certain adjustments are made such as excluding certain listed subsidiaries such as Sprint from the subject.
2. Leverage ratio:
Adjusted net interest-bearing debt / adjusted EBITDA3
3. Adjusted EBITDA:
Certain adjustments are made to EBITDA such as excluding listed subsidiaries such as Sprint.

75

SoftBank Group Corp. Consolidated Financial Report
For the fiscal year ended March 31, 2016b. Financial covenants on interest-bearing debts of Sprint
Major covenants on the interest-bearing debt issued by Sprint are as follows:(a) Holders of a portion ($21.6 billion) of notes issued by Sprint are provided with the right to require Sprint torepurchase the notes if there is a change of control and if there is a decline, to a certain extent, in ratings ofthe applicable notes by the Rating Services. Also, holders of certain bonds issued by Clearwire ($300
million) are provided with the right to require the repurchase of the notes if a change of control triggering
event occurs.
(b) It is required that as of the last day of each quarter, Sprint’s ratio of total indebtedness1 to adjusted
EBITDA2 should not exceed a certain threshold level. Exceeding the ratio could result in the maturities
being accelerated. The limit for the ratio was 6.25 as of March 31, 2016.
Notes:
1. Total indebtedness: the sum of Sprint’s outstanding debt (excluding trade payable) and guarantee of indebtedness, withcertain adjustments defined in contracts with lenders.
2. Adjusted EBITDA: Trailing four quarters EBITDA including adjustments defined in contract with lenders.

(3) Components of increase in short-term interest-bearing debt
The components of “Increase in short-term interest-bearing debt, net” in the consolidated statements of cash flows
are as follows:(Millions of yen)

Fiscal year ended
March 31, 2015
108,541
108,541

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

Fiscal year ended
March 31, 2016
118,135
10,000128,135(4) Components of proceeds from long-term interest-bearing debt
The components of “Proceeds from long-term interest-bearing debt” in the consolidated statements of cash flows
are as follows:(Millions of yen)

Proceeds from long-term borrowings
Proceeds from issuance of corporate bonds1,4
Proceeds from sale and leaseback of newly acquired equipment
Total

76

Fiscal year ended
March 31, 2015
443,726
1,763,657
508,118
2,715,501

Fiscal year ended
March 31, 2016
557,072
1,053,258
519,353
2,129,683

SoftBank Group Corp. Consolidated Financial Report
For the fiscal year ended March 31, 2016

Notes:
1. Corporate bonds issued for the fiscal year ended March 31, 2015 are as follows:

Date of issuanceTotal amountof issuanceInterest
rate

Date of maturity

45th Unsecured Straight
Corporate Bond

May 30, 2014

¥300,000 million

1.45%

May 30, 201946th Unsecured Straight
Corporate Bond

Sept. 12, 2014

¥400,000 million

1.26%

Sept. 12, 2019

1st Unsecured SubordinatedCorporate Bond

Dec. 19, 2014

¥400,000 million

2.50%

Dec. 17, 2021

2nd Unsecured SubordinatedCorporate Bond

Feb.

9, 2015¥450,000 million

2.50%

Feb.

Feb. 24, 2015

$1,500 million¥179,340 million

7.63%

Feb. 15, 2025

Dec. 19, 2014$300 million¥34,317 million

4.16%3

Dec. 17, 2019

Company name / Name of bonds
SoftBank Group Corp.

9, 2022

Sprint Corporation
7.625% Notes due 2025
Sprint Communications, Inc.2
Export Development Canada
Facility (Tranche 3)

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 as of March 31, 2016.
4. Corporate bonds issued for the fiscal year ended March 31, 2016 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 million55.38%
2.98%6

July 30, 2022

USD-denominated Senior Notes
due 2025

July 28, 2015

$1,000 million¥124,120 million5

6.00%
3.44%6

July 30, 2025

Euro-denominated Senior Notes
due 2022

July 28, 2015

€500 million¥67,722 million5

4.00%
3.73%6

July 30, 2022

Euro-denominated Senior Notes
due 2025

July 28, 2015

€1,250 million¥169,306 million5

4.75%
4.25%6

July 30, 2025

Euro-denominated Senior Notes
due 2027

July 28, 2015

€500 million¥67,722 million5

5.25%
4.72%6

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

5.91%3

Dec.15, 2017

Company name / Name of bonds
SoftBank Group Corp.

Sprint Communications, Inc.2
Export Development Canada
Facility (Tranche 4)77SoftBank Group Corp. Consolidated Financial Report
For the fiscal year ended March 31, 2016

Notes:
5. Stated amounts are cash outflows at the time of redemption, which are fixed by the currency swap contracts designated as cash
flow hedges.
6. Interest rates are determined 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.

(5) Components of repayment of long-term interest-bearing debt
The components of “Repayment of long-term interest-bearing debt” in the consolidated statements of cash flows
are as follows:(Millions of yen)

Fiscal year ended
March 31, 2015
(459,852)(170,181)(306,156)(48,594)(984,783)

Repayment of long-term borrowings
Redemption of corporate bonds1,3
Repayment of lease obligations
Redemption of preferred securities
Payment of installment payables
Total

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

Notes:
1. Major Corporate bonds redeemed for the fiscal year ended March 31, 2015 are as follows:

Company name / Name of bonds

Date of issuance

Amount of redemption

Interest
rate

June 19, 2007

¥14,900 million

4.36%

June 19, 2014

March 11, 2010

¥30,000 million

3.35%

March 11, 2015

June 10, 2011

¥30,000 million

0.65%

June 10, 2014

8.25%

March 27, 2015

8.38%

March 27, 2015

3.49%

May 1, 2014

Date of redemption

SoftBank Group Corp.
26th Unsecured Straight
Corporate Bond
30th Unsecured Straight
Corporate Bond
37th Unsecured Straight
Corporate Bond
SoftBank Corp.
USD-denominated Senior Notes
due year 2018

April 1, 2011

Euro-denominated Senior Notes
due year 2018

April 1, 2011

$420 million¥50,251 million€200 million¥26,471 million

iPCS, Inc.2
Second Lien Senior Secured
Floating Rate Notes due 2014

$181 million¥18,513 million

April 23, 2007

Notes:
2. iPCS, Inc. is a subsidiary of Sprint.

78

SoftBank Group Corp. Consolidated Financial Report
For the fiscal year ended March 31, 2016

3. Major corporate bonds redeemed for the fiscal year ended March 31, 2016 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. 25, 2011

¥45,000 million

1.10%

Jan.25, 2016

Jan. 20, 2011

$500 million¥60,535 million

4.08%5

Dec.15, 2015

9.50%

Dec.11, 2015

7.25%

Dec.11, 2015

SoftBank Group Corp.
32nd Unsecured Straight
Corporate Bond
34th Unsecured Straight
Corporate Bond
Sprint Communications, Inc.4
Export Development Canada
Facility (Tranche 2)
Brightstar Corp.
9.50% senior notes due 2016

Nov. 30, 2010

7.25% senior notes due 2018

July 26, 2013$350 million¥42,375 million$250 million¥30,268 million

Notes:
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 at the time of redemption.

12. 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

U.S. dollars

As ofMarch 31, 2015
120.17(yen)
As ofMarch 31, 2016112.68(2) Average rate for the quarter
For the fiscal year ended March 31, 2015

U.S. dollars

Three-month period
endedJune 30, 2014
102.14(yen)
Three-month period Three-month period Three-month period
ended
ended
ended
September 30, 2014 December 31, 2014
March 31, 2015
104.35114.39119.56

For the fiscal year ended March 31, 2016

U.S. dollars

Three-month period
endedJune 30, 2015
121.34(yen)
Three-month period Three-month period Three-month period
ended
ended
ended
September 30, 2015 December 31, 2015
March 31, 2016
121.91121.07116.9579

SoftBank Group Corp. Consolidated Financial Report
For the fiscal year ended March 31, 2016

13. Equity(1) Capital surplus
For the fiscal year ended March 31, 2015
The Company acquired all remaining shares of Brightstar Global Group Inc. indirectly held by Marcelo Claure,
the former Chairman and CEO of Brightstar Corp., and owns 100% of the equity interest of Brightstar Global
Group Inc. In connection with this transaction, ¥30,509 million is deducted from capital surplus as “Changes
in interests in subsidiaries.”
For the fiscal year ended March 31, 2016
The Company acquired additional 24.1% 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) Accumulated other comprehensive income
The components of accumulated other comprehensive income are as follows:(Millions of yen)

As ofMarch 31, 2015

As ofMarch 31, 2016

Available-for-sale financial assets

14,52432,594

Cash flow hedges
Exchange differences on translating
foreign operations(7,345)(40,088)533,207269,230

540,386

261,736Total
14. Other operating loss
The components of other operating loss are as follows:(Millions of yen)

Fiscal year ended
March 31, 2015

Fiscal year ended
March 31, 2016

Domestic Telecommunications segment
Provision for unprofitable contract1
Sprint segment
Loss on disposal of property, plant andequipment2
Severance costs associated with reduction inwork force of Sprint
Legal reserves
Impairment loss on non-current assets3
Gain on partial pension settlement4
Other
Distribution segment
Impairment loss on non-current assets5
Other
Other
Total

80

(21,271)--(37,032)(27,129)(26,079)(10,492)
18,726
11,866(23,437)(19,881)(10,271)607
25(27,668)(13,633)(2,833)(6,086)(139,252)

SoftBank Group Corp. Consolidated Financial Report
For the fiscal year ended March 31, 2016

Notes:
1. Loss was recognized due to the provision made by SoftBank Corp. for the excess of expected future cost of delivery fora contracted communication service over its contracted amount.
2. ¥30,348 million of loss on disposal that 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, and ¥6,684 million ofloss recognized upon the sale of devices to Mobile Leasing Solutions, LLC under the Handset Sale-Leaseback
transaction. Regarding Handset Sale-Leaseback transaction, the details are described in “Note 7. Handset
sale-leaseback.”
3. Impairments are primarily related to cell site construction costs that are no longer expected to be used as a result ofchanges in Sprint’s network plans.
4. Sprint made an amendment associated with the defined benefit pension plan to offer certain terminated participants,
who had not begun to receive plan benefits, the opportunity to receive their benefits as an immediate lump sum
distribution. This is the gain arising from the settlement.
5. Cash-generating units of the Distribution segment are composed of five regions, Brightstar Global Group Inc.’s US &Canada, Latin America, Asia & Oceania, SoftBank Commerce & Service Corp., and Europe & Africa from the fiscal
year ended March 31, 2016. Of these cash-generating units, as a result of reviewing the business plan of Brightstar
Global Group Inc.’s Latin America region, the recoverable amount became negative and therefore the carrying amountrelated 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 by discounting management approved estimated future cashflow plan by 22.11%, weighted
average capital cost before tax.
Goodwill of Brightstar Global Group Inc. is allocated to entire Brightstar Global Group Inc. (a group of cash-generating
units) which bundles five cash-generating units. As a result of the impairment test on entire Brightstar Global Group
Inc., the recoverable amount exceeded the carrying amount, and therefore the impairment loss on the goodwill allocatedto entire Brightstar Global Group Inc. is not recognized.

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

Fiscal year ended
March 31, 2015
Interest expense(366,500)

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

16. Dilution gain from changes in equity interest
For the fiscal year ended March 31, 2015
The Company recorded dilution gain from changes in equity interest of ¥599,668 million related to Alibaba, which isan associate of the Company. This is mainly due to the issuance of new shares by Alibaba and the conversion ofConvertible Preference Shares issued by Alibaba into common stock in connection with its listing on the New York
Stock Exchange on September 19, 2014.

81

SoftBank Group Corp. Consolidated Financial Report
For the fiscal year ended March 31, 201617. Other non-operating income (loss)
The components of other non-operating income and loss are as follows:(Millions of yen)

Foreign exchange gain and loss1
Derivative gain and loss
Impairment loss on securities2
Gain on sales of equity method associates
Impairment loss on equity method associates3
Gain from remeasurement relating to applying
equity method4
Gain from financial assets at FVTPL5
Provision of allowance for doubtful accounts2
Other
Total

Fiscal year ended
March 31, 2015
11,050(8,257)(14,996)
1,882(35,261)

Fiscal year ended
March 31, 2016
(45,610)
12,788(32,759)
12,428(2,023)

11,177-

11,209(255)

114,377(21,253)

7,837(15,614)

18,772
56,720Notes:
1. The value of the Argentine peso decreased against the US dollar in December 2015 due to change in foreign exchange
policy by the Argentine Government. As a result, foreign exchange loss of ¥18,614 million associated withdollar-denominated monetary items, such as cash and cash equivalents, account receivables, and account payables, held by
Argentine subsidiaries were recorded.
2. Shares and debt interests related to investments of PT Trikomsel Oke Tbk. in Indonesia were impaired as the investment
amount and the debt interests amount were not expected to be collected.

As a result, impairment loss on securities andprovision of allowance for doubtful accounts totaling ¥38,185 million were recorded for the fiscal year ended March 31,
2016.
3. The Company recorded impairment loss of ¥35,261 million with regard to the equity method associate for the fiscal year
ended March 31, 2015 as the fair value had been declining for a prolonged period and the carrying amount was reduced to
the recoverable amount.
4. Due to the increase in the percentage of voting rights, the equity method was newly applied to the investment in associates
and the gain arose from remeasurement of the interest already held by the Company at the time the equity method wasapplied, based on the fair value on the date of the equity method application.
5. Gain or loss arising from financial assets at FVTPL comprises mainly changes in fair value of preferred stock investment
including embedded derivatives, such as ANI Technologies Pvt. Ltd and Jasper Infotech Private Limited in India,
designated as financial assets at FVTPL.

18. Discontinued operations
GungHo Online Entertainment, Inc.
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.

82SoftBank Group Corp. Consolidated Financial Report
For the fiscal year ended March 31, 2016

Operating results related to GungHo for the fiscal year ended March 31, 2015 and from April 1, 2015 to June 1, 2015
are presented as discontinued operations separately from continuing operations in the consolidated statement ofincome.
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 of pledges, Heartis agreed to act on behalf of Masayoshi Sonat 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 todirector of GungHo, effective on March 22, 2016.

The operating results and cash flows from discontinued operations are as follows:(1) 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
Loss relating to loss of control in discontinued
operations
Deferred tax expenses for investment temporary
differences
Net income (loss) from discontinued operations

Fiscal year ended
March 31, 2015
166,086(102,076)

Fiscal year ended
March 31, 2016
26,604(17,404)

64,010(27,453)
36,5579,200(3,568)
5,632-(12,739)(15,593)

139

20,964(6,968)

Fiscal year ended
March 31, 2015
53,294
5,347(1,702)56,939Fiscal year ended
March 31, 2016
16,051(735)(86)
15,230(2) Cash flows from discontinued operations(Millions of yen)

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

83

SoftBank Group Corp. Consolidated Financial Report
For the fiscal year ended March 31, 201619. Earnings per share(1) Basic earnings per share
Fiscal year ended
March 31, 2015
Net income used in the calculation of basic earnings per share(Millions of yen)
Net income attributable to owners of the parent
Continuing operations
Net income attributable to owners of the parent
Discontinued operations
Total
Weighted-average number of ordinary shares(Thousands of shares)
Basic earnings per share (yen)Continuing operations
Discontinued operations
Total

Fiscal year ended
March 31, 2016

668,936

484,458(575)
668,361(10,286)
474,172

1,188,830

1,178,098

562.68(0.48)
562.20411.22(8.73)
402.49(2) Diluted earnings per share
Fiscal year ended
March 31, 2015
Net income used in the calculation of diluted earnings per share(Millions of yen)
Continuing operations
Net income from continuing operations used in the calculationof basic earnings per share
Effect of dilutive securities issued by subsidiaries and associates
Sub total
Discontinued operations
Net loss from discontinued operations used in the calculation ofbasic earnings per share
Sub total
Total
Weighted-average number of ordinary shares used in the calculationof diluted earnings per share (Thousands of shares)
Weighted-average number of ordinary shares
Adjustments:
Warrants and corporate bonds with stock acquisition rights
Total
Diluted earnings per share (yen)Continuing operations
Discontinued operations
Total

84

Fiscal year ended
March 31, 2016

668,936(3,509)665,427

484,458(16,475)
467,983

(575)
(575)
664,852(10,286)(10,286)
457,697

1,188,830

1,178,098

1,061
1,189,891

556
1,178,654

559.23(0.48)
558.75397.05(8.73)
388.32

SoftBank Group Corp. Consolidated Financial Report
For the fiscal year ended March 31, 201620. Supplemental information to the 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 cash outflows from long-term prepaid
expenses that are included in “Other non-current assets” in the 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 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) Income taxes paid and income taxes refund
For the fiscal year ended March 31, 2016
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. The withholding income tax of ¥293,489 million included in “Income
taxes paid” is expected to be refunded by the end of July 2016.
(4) Proceeds from sales of property, plant and equipment, and intangible assets
For the fiscal year ended March 31, 2016
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 7. Handset sale-leaseback.”(5) Decrease from loss of control over subsidiaries
For the fiscal year ended March 31, 2016
“Decrease from loss of control over subsidiaries” is the amount of cash and cash equivalents held by GungHo atthe time of loss of control.
(6) Payments for purchase of subsidiaries’ interests from non-controlling interests
For the fiscal year ended March 31, 2016
“Payments for purchase of subsidiaries’ interests from non-controlling interests” is mainly due to the additionalpurchase of shares of Supercell and Sprint from existing shareholders.

85SoftBank Group Corp. Consolidated Financial Report
For the fiscal year ended March 31, 2016(7) Significant non-cash transactions
Significant non-cash investing and financing activities are as follows:(Millions of yen)

Fiscal year ended
March 31, 2015
Transfer of leased devices from inventories toproperty, plant and equipment

144,030

Fiscal year ended
March 31, 2016
389,480

In addition to the above, ASKUL Corporation has become a subsidiary of the Company for the fiscal year ended
March 31, 2016 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 aredescribed in “Note 6. Business combinations.”

21. Significant subsequent events
There are no applicable items for the fiscal year ended March 31, 2016.

86