Consolidated financial report for the six-month period ended September 30, 2024

Consolidated financial report for the six-month period ended September 30, 2024

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1. Financial Highlights (Millions of yen; amounts are rounded to the nearest million yen)
(Percent…
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As of September 30, 2024: 1,469,995,230 shares
As of March 31, 2024: 1,469,995,230 shares
As of S…
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1. Results of Operations ..........................................................................…
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Company names/Abbreviations Definition
SoftBank Group Corp. or SBG SoftBank Group Corp. (stand-alo…
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1. Results highlights
◆ ¥2,651.0 billion investment gain (¥963.6 billion loss for the same period …
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3. Refinance of bonds and execution of loan financings
◆ Domestic straight bonds
The Company issu…
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(Millions of yen)
Six months ended September 30
2023 2024 Change Change %
Net sales 3,227,060 3,…
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C Gain on Investments at SoftBank Vision Funds
Investment gain of ¥599,778 million was recorded at…
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from subsidiaries and foreign currency-denominated senior notes, that exceeded their U.S. dollar-de…
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J Income Taxes
Operating companies such as SoftBank Corp. and LY Corporation recorded income tax e…
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Segments Main businesses Core companies
Reportable segments
Investment Business 
of Holding 
Co…
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1. Investment gain of ¥2,116.8 billion was recorded at Investment Business of Holding Companies due…
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(Millions of yen)
Six months ended September 30
2023 2024 Change Change %
Gain (loss) on investm…
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(Millions of yen)
September 30, 2024
Cash and cash equivalents 499,225
Investments from asset ma…
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(Millions of yen)
Equivalent amount of cash investments by Masayoshi Son in Delaware subsidiaries …
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(As of September 30, 2024; in billions of U.S. dollars)
Since Inception The Fiscal Year*5
Investm…
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SVF1 SVF2 LatAm Funds
Primary limited
partnership
SoftBank Vision Fund L.P. SoftBank Vision Fund…
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(Millions of yen)
Six months ended September 30
2023 2024 Change Change %
Gain on investments at…
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(Billions of U.S. dollars)
Investments made during the fiscal year Disposals3
 made during the fi…
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(Billions of U.S. dollars)
Cumulative
number of
investments
Cumulative
investment
cost
Cumul…
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(Billions of U.S. dollars)
Cumulative
number of
investments
Cumulative
investment
cost
Cumul…
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(Billions of U.S. dollars)
Total The Company Third-party investors
Committed capital (A) 98.6 33.…
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For a complete list of portfolio companies and historical quarterly results of SVF1, SVF2, and LatA…
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Segment income increased by 4.8% YoY, driven by sustained profit growth in the media & EC, consumer…
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Arm’s business continues to benefit from technology companies increasing investments in AI. Arm 
r…
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For more information on Arm’s U.S. GAAP-based financial results and business operations, please ref…
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1. Status of investment assets
◆ Carrying amount of investments from SVF (FVTPL)*1 decreased by ¥9…
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(Millions of yen)
March 31, 2024 September 30, 2024 Change
Cash and cash equivalents 6,186,874 4,…
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Components Main reasons for changes from the previous fiscal year-end
Non-current assets
D Proper…
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(Millions of yen)
March 31, 2024 September 30, 2024 Change
 Investment Business of Holding
 Comp…
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(Millions of yen)
March 31, 2024 September 30, 2024 Change
Interest-bearing debt 8,271,143 8,935,…
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(Millions of yen)
March 31, 2024 September 30, 2024 Change
 Investment Business of Holding
 Comp…
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Components Details
Investment Business of Holding Companies segment
SBG
A Borrowings The Company…
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(Millions of yen)
March 31, 2024 September 30, 2024 Change
Common stock 238,772 238,772 -
Capita…
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1. Cash flows from operating activities
Outlays for income taxes: ¥196.2 billion, income tax refun…
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(Millions of yen)
Six months ended September 30
2023 2024 Change
Cash flows from operating activ…
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Components Primary details
Payments (net) for acquisition of 
control over subsidiaries
¥(187,91…
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Components Primary details
Repayment of interest-bearing debt (total of A through C below)
¥(2,57…
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1 Interest expenses of SBG include interest expenses of its wholly owned subsidiaries conducting fu…
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(Millions of yen)
As of
March 31, 2024
As of
September 30, 2024
Assets
Current assets
Cash a…
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(Millions of yen)
As of
March 31, 2024
As of
September 30, 2024
Liabilities and equity
Curren…
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(Millions of yen)
Six-month period ended
September 30, 2023
Six-month period ended
September 30…
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(Millions of yen)
Six-month period ended
September 30, 2023
Six-month period ended
September 30…
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(Millions of yen)
Three-month period ended
September 30, 2023
Three-month period ended
Septembe…
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(Millions of yen)
Three-month period ended
September 30, 2023
Three-month period ended
Septembe…
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(Millions of yen)
Equity attributable to owners of the parent
Common 
stock
Capital 
surplus
…
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(Millions of yen)
Noncontrolling 
interests Total equity
As of April 1, 2023 1,619,366 10,649,2…
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(Millions of yen)
Equity attributable to owners of the parent
Common 
stock
Capital 
surplus
…
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(Millions of yen)
Noncontrolling 
interests Total equity
As of April 1, 2024 2,075,044 13,237,1…
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(Millions of yen)
Six-month period ended
September 30, 2023
Six-month period ended
September 30…
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(Millions of yen)
Six-month period ended
September 30, 2023
Six-month period ended
September 30…
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Company names / Abbreviations Definition
SoftBank Group Corp. SoftBank Group Corp. (stand-alone ba…
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(6) Significant Doubt about Going Concern Assumption
There are no applicable items.
(7) Notes to …
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owned subsidiaries of the Company in the UK. SVF1 and SVF2 make investment decisions through each 
…
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subsidiaries to SVF1, SVF2, or LatAm Funds were accounted for using the equity method prior to the …
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consolidated statement of cash flows. No cash contributions into SVF2 and LatAm Funds from Third-Pa…
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3. Segment information
(1) Description of reportable segments
The Company’s reportable segments a…
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(2) Net sales and income of reportable segments
Income of reportable segments is defined as “Incom…
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(Millions of yen)
Reportable segments
Investment Business
of Holding Companies
SoftBank Vision
…
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(Millions of yen)
Reportable segments
Investment Business
of Holding Companies
SoftBank Vision
…
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(Millions of yen)
Reportable segments
Investment Business
of Holding Companies
SoftBank Vision
…
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(Millions of yen)
Reportable segments
Investment Business
of Holding Companies
SoftBank Vision
…
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(Millions of yen)
Six-month period ended 
September 30, 2023
Six-month period ended 
September …
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Notes:
1. The amount of realized gain and loss on investments is the exit price net of the investm…
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(2) Third-party interests in SVF
a. Terms and conditions of contribution from/ distribution to SVF…
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(Millions of yen)
(For reference purposes only)
Links with the condensed interim 
consolidated f…
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(Millions of yen)
Receivables from Third-Party
Investor in SVF2
As of April 1, 2024 448,931
Inc…
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(Millions of yen)
Receivables from Third-Party
Investor in LatAm Funds
As of April 1, 2024 105,2…
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investment performance for certain periods specified in the constitutional agreement, according to …
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5. Disposal group classified as held for sale
For certain prepaid forward contracts using Alibaba …
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(2) Transactions for sale of Alibaba shares by prepaid forward contracts
Wholly-owned subsidiaries…
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(Millions of yen)
Six-month period ended 
September 30, 2023
Six-month period ended 
September …
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(Millions of yen)
As of
March 31, 2024
As of
September 30, 2024
Carrying amount
(fair value)
…
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(Yen)
As of
March 31, 2024
As of
September 30, 2024
USD 151.41 142.73
(Yen)
Three-month peri…
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(Thousands of shares)
Six-month period ended 
September 30, 2023
Six-month period ended 
Septem…
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(Millions of yen)
Six-month period ended 
September 30, 2023
Six-month period ended 
September …
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(2) Gain and loss on investments at SoftBank Vision Funds
The details of gain and loss on investme…
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(Millions of yen)
Six-month period ended 
September 30, 2023
Six-month period ended 
September …
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Six-month period ended 
September 30, 2023
Six-month period ended 
September 30, 2024
Net incom…
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Three-month period ended 
September 30, 2023
Three-month period ended 
September 30, 2024
Net i…
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15. Supplemental information to the condensed interim consolidated statement of cash flows
(1) Pay…
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Name of the 
company or 
individual
Nature of 
relationship Nature of transaction
For the six-…
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interests for the period from the Company’s contribution to SVF2 until June 30, 2021.
MgmtCo is en…
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Name of the 
company or 
individual
Nature of 
relationship Nature of transaction
For the six-…
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MgmtCo is entitled to make full or partial payment of its Equity Acquisition Amount at any point in…
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Name of the 
company or 
individual
Nature of 
relationship Nature of transaction
For the six-…
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Consolidated financial report for the six-month period ended September 30, 2024

  • 1. 1. Financial Highlights (Millions of yen; amounts are rounded to the nearest million yen) (Percentages are shown as year-on-year changes) Net sales Income before income tax Net income Net income attributable to owners of the parent Total comprehensive income Amount % Amount % Amount % Amount % Amount % Six-month period ended September 30, 2024 ¥3,469,922 7.5 ¥1,461,143 - ¥1,237,366 - ¥1,005,319 - ¥(61,842) - Six-month period ended September 30, 2023 ¥3,227,060 1.4 ¥(907,425) - ¥(1,105,153) - ¥(1,408,727) - ¥669,159 (73.7) Basic earnings per share (Yen) Diluted earnings per share (Yen) Six-month period ended September 30, 2024 ¥680.70 ¥679.37 Six-month period ended September 30, 2023 ¥(971.65) ¥(974.03) Total assets Total equity Equity attributable to owners of the parent Ratio of equity attributable to owners of the parent to total assets (%) As of September 30, 2024 ¥45,346,920 ¥12,807,197 ¥10,746,634 23.7 As of March 31, 2024 ¥46,724,243 ¥13,237,169 ¥11,162,125 23.9 Dividends per share First quarter Second quarter Third quarter Fourth quarter Total (Yen) (Yen) (Yen) (Yen) (Yen) Fiscal year ended March 31, 2024 - 22.00 - 22.00 44.00 Fiscal year ending March 31, 2025 - 22.00 Fiscal year ending March 31, 2025 (Forecasted) - 22.00 44.00 This English translation of the financial report was prepared for reference purposes only and is qualified in its entirety by the original Japanese version. SoftBank Group Corp. Consolidated Financial Report For the Six-Month Period Ended September 30, 2024 (IFRS) Tokyo, November 12, 2024 (1) Results of Operations (2) Financial Position 2. Dividends Notes: 1. On October 21, 2024, the Company announced that the interim dividend for the fiscal year ending March 31, 2025 was determined under the resolution passed at the Board of Directors meeting held on the same date. 2. Revision of the latest forecasts on the dividends: No
  • 2. As of September 30, 2024: 1,469,995,230 shares As of March 31, 2024: 1,469,995,230 shares As of September 30, 2024: 22,932,129 shares As of March 31, 2024: 4,069,831 shares As of September 30, 2024: 1,463,279,788 shares As of September 30, 2023: 1,464,122,067 shares * Notes (1) Significant changes in scope of consolidation during the period: Yes Newly consolidated: 81 companies (SBE Global, LP and its 80 subsidiaries) Excluded from consolidation: 427 companies (Fortress Investment Group LLC and its 426 subsidiaries) (2) Changes in accounting policies and accounting estimates [1] Changes in accounting policies required by IFRS: No [2] Changes in accounting policies other than those in [1]: No [3] Changes in accounting estimates: No (3) Number of shares issued (common stock) [1] Number of shares issued (including treasury stock): [2] Number of shares of treasury stock: [3] Number of average shares outstanding during the six-month period (April-September): * This condensed interim consolidated financial report is not subject to interim review procedures by certified public accountants or an audit firm. * Note to forecasts on the consolidated results of operations and other items Descriptions regarding the future are estimated based on the information that the Company is able to obtain at the present point in time and assumptions, which are deemed to be reasonable. However, actual results may be different due to various factors. On November 12, 2024 (JST), the Company will hold an earnings results briefing for the media, institutional investors, and financial institutions. This earnings results briefing will be broadcasted live on the Company’s website in both Japanese and English at https://group.softbank/en/ir. The data sheet will also be posted on the website on the same date at the same site.
  • 3. 1. Results of Operations ..................................................................................................................................... P.3 (1) Overview of Results of Operations .......................................................................................................... P.3 a. Consolidated Results of Operations ....................................................................................................... P.5 b. Results by Segment ................................................................................................................................ P.9 (a) Investment Business of Holding Companies Segment ..................................................................... P.10 (b) SoftBank Vision Funds Segment ...................................................................................................... P.14 (c) SoftBank Segment ............................................................................................................................ P.22 (d) Arm Segment .................................................................................................................................... P.23 (2) Overview of Financial Position ................................................................................................................ P.25 (3) Overview of Cash Flows .......................................................................................................................... P.33 (4) Forecasts ................................................................................................................................................... P.37 2. Condensed Interim Consolidated Financial Statements and Primary Notes .................................................. P.38 (1) Condensed Interim Consolidated Statement of Financial Position .......................................................... P.38 (2) Condensed Interim Consolidated Statement of Profit or Loss and Condensed Interim Consolidated Statement of Comprehensive Income .......................................... P.40 (3) Condensed Interim Consolidated Statement of Changes in Equity .......................................................... P.44 (4) Condensed Interim Consolidated Statement of Cash Flows ..................................................................... P.48 (5) Definitions of Company Names and Abbreviations Used in Condensed Interim Consolidated Financial Statements and Primary Notes .................................................................................................. P.50 (6) Significant Doubt about Going Concern Assumption .............................................................................. P.51 (7) Notes to Condensed Interim Consolidated Financial Statements ............................................................. P.51 Disclaimer This material does not constitute an offer to sell, or a solicitation of an offer to buy, limited partnership interests or comparable limited liability equity interests in any funds (including SoftBank Vision Fund 1, SoftBank Vision Fund 2, and SoftBank Latin America Funds) managed by any of the subsidiaries of SoftBank Group Corp. (“SBG”), including SB Global Advisers Limited, SB Investment Advisers (UK) Limited, or their respective affiliates, or any securities in any jurisdiction, nor should it be relied upon as such in any way. Notice Regarding PFIC Status It is possible that SBG (and certain subsidiaries of SBG) may be a “passive foreign investment company” (“PFIC”) under the U.S. Internal Revenue Code of 1986, as amended, for its current fiscal year due to the composition of its assets and the nature of its income. We recommend that U.S. holders of SBG’s shares consult their tax advisors with respect to the U.S. federal income tax consequences to them if SBG and its subsidiaries are classified as PFICs. SBG is not responsible for any tax treatments or consequences thereof with respect to U.S. holders of SBG’s shares. (Appendix) Contents SoftBank Group Corp. Consolidated Financial Report For the Six-Month Period Ended September 30, 2024 1
  • 4. Company names/Abbreviations Definition SoftBank Group Corp. or SBG SoftBank Group Corp. (stand-alone basis) The Company SoftBank Group Corp. and its subsidiaries *Each of the following names or abbreviations indicates the respective company and its subsidiaries, if any. SB Northstar or asset management subsidiary SB Northstar LP SoftBank Vision Fund 1 or SVF1 SoftBank Vision Fund L.P. and its alternative investment vehicles SoftBank Vision Fund 2 or SVF2 SoftBank Vision Fund II-2 L.P. SoftBank Latin America Funds or LatAm Funds SBLA Latin America Fund LLC SoftBank Vision Funds or SVF SVF1, SVF2, and LatAm Funds SBIA SB Investment Advisers (UK) Limited SBGA SB Global Advisers Limited Arm Arm Holdings plc SBE Global SBE Global, LP Fortress Fortress Investment Group LLC WeWork WeWork Inc. T-Mobile T-Mobile US, Inc. Alibaba Alibaba Group Holding Limited MgmtCo MASA USA LLC The first quarter Three-month period ended June 30, 2024 The second quarter Three-month period ended September 30, 2024 The period Six-month period ended September 30, 2024 The second quarter-end September 30, 2024 The fiscal year Fiscal year ending March 31, 2025 The previous fiscal year Fiscal year ended March 31, 2024 The previous fiscal year-end March 31, 2024 Fiscal year ended March 31, 2024 Fiscal year ending March 31, 2025 USD/JPY Q1 Q2 Q3 Q4 Q1 Q2 Average rate for the quarter ¥138.11 ¥145.44 ¥147.00 ¥147.87 ¥156.53 ¥150.26 Rate at the end of the period ¥151.41 ¥142.73 Definition of Company Names and Abbreviations Used in This Appendix Company names and abbreviations used in this appendix, unless otherwise stated or interpreted differently in the context, are as follows: Exchange Rates Used for Translations SoftBank Group Corp. Consolidated Financial Report For the Six-Month Period Ended September 30, 2024 2
  • 5. 1. Results highlights ◆ ¥2,651.0 billion investment gain (¥963.6 billion loss for the same period of the previous fiscal year) - ¥2,116.8 billion investment gain at Investment Business of Holding Companies · Investment gains of ¥1,280.1 billion on Alibaba shares and ¥566.2 billion*1 on T-Mobile shares Investment gain of ¥1,280.1 billion on Alibaba shares was offset by a derivative loss of ¥1,405.4 billion, which arose from prepaid forward contracts using Alibaba shares (recorded separately under “derivative loss (excluding gain (loss) on investments)”). - ¥599.8 billion investment gain at SoftBank Vision Funds (excluding gains associated with SVF’s investments in the Company’s subsidiaries) · The fair values of a portion of investments, including ByteDance and Coupang, increased. · Since inception, the gross performance has been a gain of $22.6 billion for SVF1 and a loss of $21.0 billion for SVF2.*2 Note: Changes in the fair value of the shares of consolidated subsidiaries, including Arm and SoftBank Corp., are not recorded in the Company’s consolidated statement of profit or loss. ◆ ¥1,461.1 billion income before income tax (improvement of ¥2,368.6 billion YoY) reflecting the recordings of: - Selling, general and administrative expenses of ¥1,433.1 billion - Finance cost of ¥283.7 billion - Foreign exchange gain of ¥289.0 billion. This was due to the yen’s appreciation in exchange rates used for translation at the second quarter-end compared with the previous fiscal year-end, amid a net excess of U.S. dollar-denominated liabilities over U.S. dollar-denominated cash and cash equivalents and loans receivable, primarily within SBG. - Derivative loss (excluding gain (loss) on investments) of ¥1,478.0 billion. This arose from a loss relating to prepaid forward contracts using Alibaba shares following an increase in Alibaba’s share price. This loss offset the investment gain on Alibaba shares as mentioned above. - Increase in third-party interests in SVF of ¥421.2 billion. This was mainly due to the recording of an investment gain of ¥896.4 billion at SVF1 (on an SVF segment basis), where the proportion of third-party interests is significant, resulting in an increase in third-party interests of ¥363.1 billion (attributable to investors entitled to performance-based distribution). ◆ ¥1,005.3 billion net income attributable to owners of the parent (improvement of ¥2,414.0 billion YoY) reflecting the recordings of: - Income taxes of ¥223.8 billion - Net income attributable to non-controlling interests of ¥232.0 billion 2. Sequentially implement investments for growth ◆ SBG and its wholly owned subsidiaries Total investment of ¥419.5 billion*3 Examples of investments during the period: - Investment in Wayve Technologies, a U.K. company developing autonomous driving platforms based on data learning using AI - Acquisition of additional interests in equity method associate SBE Global, which constructs and operates solar power plants in the U.S., converting it to a subsidiary - Acquisition of U.K.-based company Graphcore, a designer and developer of semiconductor chips specialized for AI and machine learning, also converting it to a subsidiary ◆ SVF Total investment of $1.23 billion,*4 primarily in the Enterprise and Frontier Tech sectors, net of follow-on investments in the Company’s subsidiaries that were eliminated in consolidation 1. Results of Operations (1) Overview of Results of Operations SoftBank Group Corp. Consolidated Financial Report For the Six-Month Period Ended September 30, 2024 3
  • 6. 3. Refinance of bonds and execution of loan financings ◆ Domestic straight bonds The Company issued domestic straight bonds of ¥100.0 billion to wholesale markets in April 2024 and ¥550.0 billion to retail markets in June 2024. The Company redeemed domestic straight bonds of ¥450.0 billion upon maturity in June 2024. ◆ Foreign currency-denominated senior notes In July 2024, the Company issued U.S. dollar-denominated senior notes of $900 million and eurodenominated senior notes of 900 million euros. In the same month, the Company also redeemed U.S. dollardenominated senior notes of $767 million prior to maturity and euro-denominated senior notes of 638 million euros upon maturity. ◆ Term loans The Company borrowed $2.9 billion through a term loan in September 2024. ◆ Commitment lines The Company renewed its commitment line agreement in September 2024. After the renewal, the drawdown limits are $5,465 million for the U.S. dollar-denominated tranche and ¥35.6 billion for the yen-denominated tranche. As of the second quarter-end, the entire amount remained undrawn. 4. Share repurchase Under the share repurchase program with a maximum of ¥500.0 billion authorized in August 2024, the Company purchased a cumulative total of ¥153.8 billion by the second quarter-end and a cumulative total of ¥174.8 billion by October 31, 2024. 1st - Paid 2nd - Paid 3rd - Scheduled 4th - Scheduled Timing August 2023 August 2024 February 2025 August 2025 Amount $4.1 billion $4.1 billion $4.1 billion $3.8 billion Notes: 1. Includes derivative gains and losses on investments and effects of foreign exchange translation 2. Gross amounts before deductions, such as third-party interests and taxes 3. The amount comprises the investment outlay by SBG and its primary wholly owned subsidiaries (excluding investments in U.S. Treasury Bonds), recorded under “Payments for acquisition of investments,” with the addition of net outlays associated with the subsidiary conversion of SBE Global and Graphcore Limited (“Graphcore”), recorded under “Payments (net) for acquisition of control over subsidiaries,” both of which are presented within the consolidated statement of cash flows. 4. The amounts recorded in the consolidated statement of cash flows PAYMENT OF SECOND INSTALLMENT OF CONSIDERATION FOR INTRAGROUP TRANSACTION OF ARM SHARES In August 2024, the Company made the second installment payment of $4.1 billion as part of the total consideration for the acquisition of Arm’s ordinary shares, which took place in August 2023, prior to Arm’s initial public offering in September 2023, when the Company’s wholly owned subsidiary purchased the ordinary shares of Arm held by SVF1 (equivalent to 24.99% of Arm’s outstanding shares) for $16.1 billion (the “Transaction Consideration”). The Transaction Consideration is being paid in four installments, with the first installment of $4.1 billion having been paid at the completion of the transaction in August 2023. These installment payments do not have any impact on the consolidated financial statements as they are settlements of claims and obligations pertaining to consideration for transfer of shares of the Company’s subsidiary within the group. Timing and amount of installments of the Transaction Consideration SoftBank Group Corp. Consolidated Financial Report For the Six-Month Period Ended September 30, 2024 4
  • 7. (Millions of yen) Six months ended September 30 2023 2024 Change Change % Net sales 3,227,060 3,469,922 242,862 7.5% A Gross profit 1,732,317 1,851,144 118,827 6.9% Gain on investments Gain (loss) on investments at Investment Business of Holding Companies (413,530) 2,116,759 2,530,289 - B Gain (loss) on investments at SoftBank Vision Funds (583,282) 599,778 1,183,060 - C Gain (loss) on other investments 33,257 (65,511) (98,768) - Total gain (loss) on investments (963,555) 2,651,026 3,614,581 - Selling, general and administrative expenses (1,354,072) (1,433,070) (78,998) 5.8% D Finance cost (295,184) (283,710) 11,474 (3.9%) E Foreign exchange gain (loss) (648,086) 289,044 937,130 - F Derivative gain (loss) (excluding gain (loss) on investments) 701,718 (1,477,966) (2,179,684) - G Change in third-party interests in SVF (226,265) (421,217) (194,952) 86.2% H Other gain 145,702 285,892 140,190 96.2% I Income before income tax (907,425) 1,461,143 2,368,568 - Income taxes (197,728) (223,777) (26,049) 13.2% J Net income (1,105,153) 1,237,366 2,342,519 - Net income attributable to non-controlling interests 303,574 232,047 (71,527) (23.6%) Net income attributable to owners of the parent (1,408,727) 1,005,319 2,414,046 - Total comprehensive income 669,159 (61,842) (731,001) - Comprehensive income attributable to owners of the parent 377,178 (281,127) (658,305) - a. Consolidated Results of Operations The following is an overview of the primary and noteworthy components. A Net Sales Net sales increased in the SoftBank segment and the Arm segment. For details, see “(c) SoftBank Segment” and “(d) Arm Segment” under “b. Results by Segment.” B Gain on Investments at Investment Business of Holding Companies Investment gain of ¥2,116,759 million was recorded at Investment Business of Holding Companies. This primarily included investment gains of ¥1,280,056 million on Alibaba shares and ¥566,247 million on T-Mobile shares (including derivative gains and losses on investments and effects of foreign exchange translation). For details, see “(a) Investment Business of Holding Companies Segment” under “b. Results by Segment.” SoftBank Group Corp. Consolidated Financial Report For the Six-Month Period Ended September 30, 2024 5
  • 8. C Gain on Investments at SoftBank Vision Funds Investment gain of ¥599,778 million was recorded at SoftBank Vision Funds. This comprised a gain of ¥841,915 million at SVF1, a loss of ¥232,636 million at SVF2, and a gain of ¥19,211 million at LatAm Funds, and a loss of ¥28,712 million on other investments. The investment gain at SVF1 was primarily due to unrealized valuation gains (net) totaling ¥850,711 million for investments held at the second quarter-end. Of this, an unrealized gain (net) totaling ¥650,209 million was recorded for public portfolio companies, mainly attributed to higher share prices of Coupang, Inc. (“Coupang”) and DiDi Global Inc. (“DiDi”). For private portfolio companies, an unrealized gain (net) totaling ¥200,502 million was recorded, mainly due to increases in the fair value of portfolio companies such as Bytedance Ltd. (“ByteDance”), which saw a valuation rise due to share price increases among its market comparable companies and its strong performance, despite decreases in the fair values of some other investments primarily due to their weaker performances. The investment loss at SVF2 was primarily due to unrealized valuation losses (net) totaling ¥243,702 million for investments held at the second quarter-end. This was largely due to a decline in the share prices of public portfolio companies, including AutoStore Holdings Ltd. (“AutoStore”) and Symbotic Inc. (“Symbotic”), as well as a decrease in the fair values of private portfolio companies, mainly reflecting markdowns due to weaker performances. For details, see “(b) SoftBank Vision Funds Segment” under “b. Results by Segment.” Primarily as a result of B and C, the total gain on investments was ¥2,651,026 million. D Selling, General and Administrative Expenses Selling, general and administrative expenses increased by ¥63,408 million year on year to ¥1,019,922 million in the SoftBank segment and by ¥51,546 million year on year to ¥265,945 million in the Arm segment. The increase in the SoftBank segment was primarily due to higher sales-related costs driven by strengthened efforts to acquire smartphone contracts and promote continued use of commerce services by existing customers. Additionally, it was impacted by the increase in license fees and outsourcing costs incurred by LY Corporation in response to security incidents. The increase in the Arm segment was primarily due to higher personnel expenses, including share-based compensation, driven by the growth in the number of engineers and other employees, mainly to enhance its R&D capability. E Finance Cost Interest expenses at SBG1 increased by ¥15,364 million year on year to ¥217,317 million. In contrast, interest expenses at SVF decreased by ¥32,079 million year on year to ¥17,552 million, due to a significant decrease in borrowings. The increase at SBG was primarily due to an increase in interest payments on domestic bonds following an increase in the outstanding balance as well as higher interest expenses from prepaid forward contracts using Alibaba shares, driven by the yen’s depreciation in the average exchange rates used for translation for the period compared with the same period of the previous fiscal year. F Foreign Exchange Gain Foreign exchange gain of ¥289,044 million (net) was recorded due to the yen’s appreciation in exchange rates used for translation at the second quarter-end compared with the previous fiscal year-end. This was mainly because SBG and domestic subsidiaries used for fund procurement had U.S. dollar-denominated liabilities, such as borrowings SoftBank Group Corp. Consolidated Financial Report For the Six-Month Period Ended September 30, 2024 6
  • 9. from subsidiaries and foreign currency-denominated senior notes, that exceeded their U.S. dollar-denominated cash and cash equivalents and loans receivable. For SoftBank Vision Funds and other foreign subsidiaries and associates, whose functional currency is primarily U.S. dollars, the yen-translated value of net assets decreased due to the yen’s appreciation in exchange rates used for translation at the second quarter-end compared with the previous fiscal year-end. However, this negative impact is not recognized as foreign exchange gains and losses; instead, it is reflected in the ¥1,308,691 million reduction in exchange differences from the translation of foreign operations, recorded under accumulated other comprehensive income in equity in the condensed interim consolidated statement of financial position. G Derivative Loss (Excluding Gain or Loss on Investments) Derivative loss of ¥1,405,393 million was recorded for the prepaid forward contracts and associated contracts using Alibaba shares. H Change in Third-Party Interests in SVF “Change in third-party interests in SVF” represents the gains and losses attributable to third-party investors, which are calculated based on the gains and losses on investments at SoftBank Vision Funds, net of management fees, performance-linked management fees, and performance fees payable to the fund managers (which are wholly owned subsidiaries of the Company) and operating and other expenses of SoftBank Vision Funds. In the consolidated statement of profit or loss, gains on investments at SoftBank Vision Funds typically lead to an increase in third-party interests (attributable to investors entitled to performance-based distributions), which negatively impacts profit. Conversely, losses on investments reduce third-party interests (attributable to investors entitled to performance-based distributions), thereby positively impacting profit. In addition, regardless of the investment gains or losses at SoftBank Vision Funds, increases in amounts attributable to investors entitled to fixed distributions are recorded as contributions to loss. This is based on the outstanding capital of preferred equity contributions from third-party investors. In the period, third-party interests in SVF increased by ¥421,217 million, relative to a gain on investments at SoftBank Vision Funds of ¥599,778 million. This was primarily due to the recording of an investment gain of ¥896,444 million at SVF1 (on a segment basis), where the proportion of third-party interests is substantial. This resulted in a ¥363,129 million increase in third-party interests attributable to investors entitled to performancebased distributions. In addition, a ¥61,852 million increase in amounts attributable to investors entitled to fixed distributions also contributed to this increase. I Other Gain A gain of ¥93,139 million was recorded due to the loss of control over Fortress, after SBG sold all of its interests in Fortress, held through its subsidiary, to a subsidiary of Mubadala Investment Company PJSC in May 2024. In July 2024, SBG acquired additional interests in its equity method associate SBE Global, converting it into a subsidiary. As a result of measuring SBG’s existing interests at fair value, the Company recorded a ¥55,553 million gain arising from the remeasurement relating to business combination. For further details, see “13. Other gain” under “(7) Notes to Condensed Interim Consolidated Financial Statements” in “2. Condensed Interim Consolidated Financial Statements and Primary Notes.” Primarily as a result of A through I, income before income tax was ¥1,461,143 million, an improvement of ¥2,368,568 million year on year. SoftBank Group Corp. Consolidated Financial Report For the Six-Month Period Ended September 30, 2024 7
  • 10. J Income Taxes Operating companies such as SoftBank Corp. and LY Corporation recorded income tax expenses. Additionally, SBG and its wholly owned subsidiaries recorded income tax expenses, primarily due to an increase in the fair value of investment securities held. While the top-up tax was estimated in accordance with the Income Inclusion Rule of the Global Minimum Tax, which was applied from the fiscal year, SBG did not record any tax expenses. Primarily as a result of A through J, net income attributable to owners of the parent was ¥1,005,319 million, an improvement of ¥2,414,046 million year on year. SoftBank Group Corp. Consolidated Financial Report For the Six-Month Period Ended September 30, 2024 8
  • 11. Segments Main businesses Core companies Reportable segments Investment Business of Holding Companies ·Investment activities by SBG and its subsidiaries SoftBank Group Corp. SoftBank Group Capital Limited SoftBank Group Japan Corporation SoftBank Group Overseas GK SB Northstar LP SoftBank Vision Funds ·Investment activities by SVF1, SVF2, and LatAm Funds SB Investment Advisers (UK) Limited SoftBank Vision Fund L.P. SB Global Advisers Limited SoftBank Vision Fund II-2 L.P. SBLA Latin America Fund LLC SoftBank ·Consumer business: Provision of mobile services, sale of mobile devices, and provision of broadband services to retail customers in Japan ·Enterprise business: Provision of mobile communications and solutions services to enterprise customers in Japan ·Distribution business: Provision of ICT (Information and Communication Technology) services products to enterprise customers and provision of communication device-related products and IoT (Internet of Things) equipment to retail customers ·Media & EC (e-commerce) business: Provision of media-related services, advertising and commerce-related services ·Financial business: Provision of payment and financial services SoftBank Corp. LY Corporation PayPay Corporation Arm ·Design of microprocessor intellectual property and related technology ·Sale of software tools and provision of related services Arm Holdings plc Other*1 ·Solar power plant construction and operation ·Fukuoka SoftBank HAWKS-related businesses SBE Global, LP Fukuoka SoftBank HAWKS Corp. b. Results by Segment The Company’s reportable segments are the components of its business activities for which decisions on resource allocation and assessments of performance are made. At the second quarter-end, there are four reportable segments: Investment Business of Holding Companies, SoftBank Vision Funds, SoftBank, and Arm. The following is a summary of the reportable segments. Note: 1. On May 14, 2024, SBG sold all interests in Fortress, held through its subsidiary, to a subsidiary of Mubadala Investment Company PJSC. Following the completion of the transaction, Fortress ceased to be a subsidiary of SBG. SoftBank Group Corp. Consolidated Financial Report For the Six-Month Period Ended September 30, 2024 9
  • 12. 1. Investment gain of ¥2,116.8 billion was recorded at Investment Business of Holding Companies due to investment gains of ¥1,280.1 billion on Alibaba shares and ¥566.2 billion*1 on T-Mobile shares. 2. Segment income amounted to ¥664.4 billion after recording derivative loss of ¥1,405.4 billion related to prepaid forward contracts using Alibaba shares. (a) Investment Business of Holding Companies Segment Note: 1. Includes derivative gains and losses on investments and effects of foreign exchange translation OVERVIEW This segment is led by SBG, which conducts investment activities either directly or through its subsidiaries, acting as a strategic investment holding company. The segment comprises SBG, SoftBank Group Capital Limited, SoftBank Group Japan Corporation, SoftBank Group Overseas GK, SB Northstar (the asset management subsidiary), and certain other subsidiaries engaged in investment and financing activities. Gains and losses on investments at Investment Business of Holding Companies encompass gains and losses on investments held by SBG either directly or through its subsidiaries, excluding gains and losses on investments pertaining to subsidiaries’ shares, such as dividend income from subsidiaries or impairment losses related to subsidiaries’ shares. This segment holds investments in portfolio companies, such as Alibaba, T-Mobile, and Deutsche Telekom AG (“Deutsche Telekom”), most of which are classified as financial assets at FVTPL (Fair Value Through Profit or Loss). Investments classified as financial assets at FVTPL are measured at fair value every quarter, with any change in fair value recorded in the consolidated statement of profit or loss as gains and losses on investments. Investment in listed stocks, corporate bonds, and other instruments by the asset management subsidiary SB Northstar engages in the acquisition and sale of listed stocks, corporate bonds (primarily those of investment grades with short time to maturity), and other instruments, utilizing the surplus funds of SBG. Investment gain (including interest received from bond investments) at the asset management subsidiary for the period amounted to ¥17.0 billion, bringing the cumulative investment loss since inception to ¥934.1 billion.*1 The balance of investments at the second quarter-end stood at ¥594.1 billion, including ¥519.2 billion in corporate bonds. SBG indirectly holds a 67% stake in SB Northstar, while SBG’s Representative Director, Corporate Officer, Chairman & CEO Masayoshi Son indirectly holds a 33% interest. The portion corresponding to Masayoshi Son’s interest is deducted from the gains and losses on investments at SB Northstar as a non-controlling interest; therefore, 67% of the gains and losses on investments impact net income attributable to owners of the parent. In the event that, at the end of the fund life (12 years + 2-year extension), SB Northstar has any unfunded repayment obligations to SBG, Masayoshi Son will cover his pro rata share of any such unfunded obligations based on his relative ownership percentage in SB Northstar. Note: 1. The cumulative investment loss includes dividend income and interest received from bond investments, but excludes the impact of SB Northstar’s investments in three Special Purpose Acquisition Companies controlled by SB Investment Advisers (US) Inc. SoftBank Group Corp. Consolidated Financial Report For the Six-Month Period Ended September 30, 2024 10
  • 13. (Millions of yen) Six months ended September 30 2023 2024 Change Change % Gain (loss) on investments at Investment Business of Holding Companies (413,530) 2,116,759 2,530,289 - A Realized gain (loss) on investments at asset management subsidiaries (88,342) 355 88,697 - Unrealized gain on valuation of investments at asset management subsidiaries 30,003 7,965 (22,038) (73.5%) Realized gain (loss) on investments*1 5,489 (29,617) (35,106) - Unrealized gain (loss) on valuation of investments (313,771) 2,113,078 2,426,849 - Change in valuation for the fiscal year (340,928) 1,954,299 2,295,227 - Reclassified to realized gain recorded in the past fiscal years*1 27,157 158,779 131,622 484.7% Derivative loss on investments (66,495) (8,453) 58,042 - Effect of foreign exchange translation*2 6,532 (11,066) (17,598) - Other 13,054 44,497 31,443 240.9% Selling, general and administrative expenses (41,495) (60,806) (19,311) 46.5% Finance cost (209,642) (270,408) (60,766) 29.0% B Foreign exchange gain (loss) (650,131) 289,539 939,670 - C Derivative gain (loss) (excluding gain (loss) on investments) Mainly due to prepaid forward contracts using Alibaba shares 700,386 (1,472,334) (2,172,720) - Other gain 71,160 61,616 (9,544) (13.4%) Segment income (income before income tax) (543,252) 664,366 1,207,618 - FINANCIAL RESULTS Notes: 1. Unrealized gains and losses on valuation of investments recorded in previous fiscal years related to the investments realized in the fiscal year are reclassified to “Realized gain (loss) on investments.” 2. Unrealized gains and losses on valuation of investments are translated using the average exchange rate for the quarter in which the gains and losses were incurred, while realized gains and losses on investments are translated using the average exchange rate for the quarter in which the shares were disposed. “Effect of foreign exchange translation” is the amount that arose due to the use of different foreign currency exchange rates for these unrealized and realized gains and losses. A Gain on investments at Investment Business of Holding Companies: ¥2,116,759 million · On June 7, 2024, the Company sold 6.7 million T-Mobile shares for $670 million in conjunction with the exercise of a portion of the call options on T-Mobile shares granted to Deutsche Telekom. As a result, in relation to TMobile shares, for the period, the Company recorded a realized gain of ¥78,277 million on investment, an unrealized loss of ¥50,043 million on the valuation of investment (the amount reclassified to realized gain from the amounts recorded in the past fiscal years), a derivative loss of ¥17,753 million on investment, and a loss of ¥11,066 million as an effect of foreign exchange translation. The remaining unexercised portion of the call options expired on June 22, 2024. · Realized loss of ¥109,504 million and unrealized valuation gain of ¥207,113 million (the amount reclassified to realized loss from the amounts recorded in the past fiscal years) were recorded due to the physical settlement of a portion of the prepaid forward contracts using Alibaba shares. · Unrealized gain of ¥2,113,078 million was recorded on the valuation of investments. Of this, ¥1,954,299 million was recorded as changes in valuation for the fiscal year, primarily consisting of gains on investments continued to be held at the second quarter-end, including ¥1,182,447 million on Alibaba shares, ¥560,265 million on T-Mobile shares, and ¥176,038 million on Deutsche Telekom shares. SoftBank Group Corp. Consolidated Financial Report For the Six-Month Period Ended September 30, 2024 11
  • 14. (Millions of yen) September 30, 2024 Cash and cash equivalents 499,225 Investments from asset management subsidiaries 594,076 including corporate bonds 519,201 Derivative financial assets at asset management subsidiaries 9 Other financial assets 1,569 Other 6,774 Total assets 1,101,653 Other financial liabilities 1,569 Other 151 Total liabilities 1,720 Investments from Delaware subsidiaries*1 1,971,699 Equivalent amount of cash investments by SBG in Delaware subsidiaries 39,786 Equivalent amount of loans to Delaware subsidiaries held by SBG (the amount entrusted by SBG related to asset management) 1,912,020 Equivalent amount of cash investments by Masayoshi Son in Delaware subsidiaries 19,893 A Retained earnings (975,060) B Exchange differences 103,294 Equity 1,099,933 C B Finance cost: ¥270,408 million (increase of ¥60,766 million year on year) · Interest expenses at SBG1 to entities outside of the group increased by ¥15,364 million year on year to ¥217,317 million. This was primarily due to an increase in interest payments on domestic bonds following an increase in the outstanding balance, as well as higher interest expenses from prepaid forward contracts using Alibaba shares, driven by the yen’s depreciation in average exchange rates used for translation for the period compared with the same period of the previous fiscal year. · An amortized cost of ¥51,661 million was recognized for the unpaid portion of the consideration for the acquisition of Arm shares from SVF1 in August 2023. This amortized cost is eliminated in consolidation. C Foreign exchange gain: ¥289,539 million Foreign exchange gain of ¥289,539 million (net) was recorded due to the yen’s appreciation in exchange rates used for translation at the second quarter-end compared to the previous fiscal year-end. This was primarily because U.S. dollar-denominated liabilities (such as borrowings from subsidiaries and foreign currency-denominated senior notes) of SBG and domestic subsidiaries used for fund procurement exceeded their U.S. dollar-denominated cash and cash equivalents and loans receivable. Reference: Impact of the asset management subsidiary on the condensed interim consolidated statement of financial position Note: 1. Investments from the Company’s subsidiaries, Delaware Project 1 L.L.C.; Delaware Project 2 L.L.C.; and Delaware Project 3 L.L.C. (the “Delaware subsidiaries”); to SB Northstar, the asset management subsidiary SoftBank Group Corp. Consolidated Financial Report For the Six-Month Period Ended September 30, 2024 12
  • 15. (Millions of yen) Equivalent amount of cash investments by Masayoshi Son in Delaware subsidiaries 19,893 A Cumulative loss attributable to non-controlling interests*2 (324,921) Exchange differences on translating foreign operations 40,943 Non-controlling interests (interests of Masayoshi Son) (264,085) D (Millions of yen) Interests of SBG 1,364,018 Non-controlling interests (interests of Masayoshi Son) (264,085) D Equity 1,099,933 C Borrower Type Balance as of September 30, 2024 in condensed interim consolidated statement of financial position SBG Borrowings ¥891.4 billion Corporate bonds ¥6,321.1 billion Lease liabilities ¥8.7 billion Commercial paper ¥198.0 billion Wholly owned subsidiaries conducting fund procurement Borrowings using Arm shares (margin loan) ¥1,203.6 billion Prepaid forward contracts using Alibaba shares (collar and forward contracts) ¥3,566.2 billion Borrowings using SoftBank Corp. shares (margin loan) ¥499.5 billion Collar transactions using Deutsche Telekom shares ¥484.3 billion (Calculation of non-controlling interests) Note: 2. One-third of B in the above table (Interests in equity (C above)) Main interest-bearing debt and lease liabilities in this segment Note: Borrowings of wholly owned subsidiaries conducting fund procurement are nonrecourse to SBG. SoftBank Group Corp. Consolidated Financial Report For the Six-Month Period Ended September 30, 2024 13
  • 16. (As of September 30, 2024; in billions of U.S. dollars) Since Inception The Fiscal Year*5 Investment cost*6 Returns*6 Gain/loss Gain/loss Jul - Sep Gain/loss Apr - Sep SVF1 Exited investments 44.1 65.8 21.7 0.0 (4.4) Investments before exit 45.4 43.9 (1.5) 2.8 5.6 Reversal of valuation gain/loss recorded in prior periods for exited investments in the fiscal year 0.2 4.6 Derivatives/Interests/Dividends (0.0) 2.4 2.4 0.0 0.0 Total 89.5 112.1 22.6 3.0 5.8 ¥453.9 billion ¥896.4 billion SVF2 Exited investments 7.0 3.4 (3.6) (0.3) (3.9) Investments before exit 46.6 29.2 (17.4) 0.8 (1.8) Reversal of valuation gain/loss recorded in prior periods for exited investments in the fiscal year 0.3 3.9 Derivatives/Interests/Dividends (0.0) (0.0) (0.0) 0.1 0.1 Total 53.6 32.6 (21.0) 0.9 (1.7) ¥137.2 billion ¥(276.5) billion 1. Since inception, SVF1 has had a gross gain of $22.6 billion; SVF2 has had a gross loss of $21.0 billion.*1 SVF1: $112.1 billion in cumulative returns*2 on $89.5 billion investments, with $22.6 billion gross gain · Investment gain was $5.8 billion (¥896.4 billion) for the period. · The fair value of investments held at the second quarter-end increased by 6.7% from the previous quarterend.*3 - Up 16.8% QoQ for public portfolio companies,*4 primarily driven by an increase in the share prices of Coupang and DiDi - Down 0.3% QoQ for private portfolio companies,*4 mainly due to decrease in fair values of certain investments reflecting their weaker performance. This was partially offset by the increase in the fair values of some other investments due to share price increases among market comparable companies. SVF2: $32.6 billion in cumulative returns on $53.6 billion investments, with $21.0 billion gross loss · Investment loss was $1.7 billion (¥276.5 billion) for the period. · The fair value of investments held at the second quarter-end increased by 3.0% from the previous quarterend. - Up 0.2% QoQ for public portfolio companies, primarily due to an increase in the share price of Ola Electric, which listed its shares in August 2024, despite a decrease in the share prices of investments such as Symbotic and AutoStore - Up 3.4% QoQ for private portfolio companies, primarily reflecting valuation increases in certain investments in their recent transactions, as well as share price increases among market comparable companies Note: In June 2024, following WeWork’s emergence from Chapter 11 of the U.S. Bankruptcy Code, the WeWork stocks previously held by SVF1 and SVF2 were canceled. Additionally, a portion of the prepetition claims SVF2 held against WeWork was also canceled, while the remaining portion of these claims was converted into stocks of the newly restructured WeWork. As a result, the investments in the old WeWork stocks, warrants, and notes held by SVF1 and SVF2 were considered realized, and the unrealized investment losses of $6.71 billion (SVF1: $3.18 billion, SVF2: $3.53 billion) recorded in past fiscal years were reclassified as realized losses. 2. Continued investment and monetization under a disciplined approach · SVF2 made investments totaling $1.24 billion2 in sectors such as Enterprise and Frontier Tech during the period. · SVF1 and SVF2 sold investments for a total of $1.85 billion2 in the period, including full exits from 10 portfolio companies, including SenseTime and Paytm, and partial exits from several portfolio companies. (b) SoftBank Vision Funds Segment SoftBank Group Corp. Consolidated Financial Report For the Six-Month Period Ended September 30, 2024 14
  • 17. SVF1 SVF2 LatAm Funds Primary limited partnership SoftBank Vision Fund L.P. SoftBank Vision Fund II-2 L.P. SBLA Latin America Fund LLC Total committed capital (billions of U.S. dollars) 98.6 60.8*2 7.8*2 The Company: 33.1*1 Third-party investors: 65.5 The Company: 58.2 Third-party investor (MgmtCo): 2.6*3 The Company: 7.4 Third-party investor (MgmtCo): 0.4*3 Manager SBIA (The Company’s wholly owned U.K. subsidiary) SBGA (The Company’s wholly owned U.K. subsidiary) Investment period Ended on September 12, 2019 To be determined by the manager Fund life Until November 20, 2029 + up to two one-year extensions option by SBIA Until October 4, 2032 + up to two one-year extensions option by SBGA Notes: 1. Cumulative gross gains and losses and proceeds from realized investments are before deducting third-party interests, taxes, and expenses. The same applies to the presentation of cumulative investment performance hereinafter. 2. Exit price, etc., plus fair value of investments held. The same applies hereinafter. 3. Represents changes in U.S. dollar-based fair values, excluding those from investments or exits made during the second quarter. The classification of portfolio companies as public/private is based on their status as of the second quarter-end. For portfolio companies with a change in the classification of public/private during the second quarter, comparisons are made by adjusting their status at the first quarter-end to that of the second quarter-end. The same applies to the change in fair value of investments held at the quarter-end in this section. 4. Public portfolio companies are shares traded on stock exchanges or over-the-counter markets. Private portfolio companies are those that do not fall under the category of public portfolio companies. The same applies hereinafter. 5. The amount of gains and losses for exited investments for the fiscal year (July to September and April to September) represents the exit price, net of the investment cost of such investments. Unrealized valuation gains and losses of such investments, recorded in prior years or the first quarter, are presented as a reversal of valuation gains and losses recorded in prior periods for exited investments in the fiscal year. Therefore, the total amount of gains and losses for the first quarter (April to June), disclosed in the first quarter, and the gains and losses for the second quarter (July to September) for “Investments before exits” may not align with the amount of gains and losses for the period (April to September). 6. For derivatives, the investment costs represent the costs of the derivatives. Investment returns represent the exit price for exited investments, the fair value for investments before exits, the settlement amount of settled contracts or the fair value of open contracts for derivatives, and the respective amounts received for interest or dividends. OVERVIEW Segment results mainly include the results of the investment and operational activities of SoftBank Vision Fund 1 (SVF1), SoftBank Vision Fund 2 (SVF2), and SoftBank Latin America Funds (LatAm Funds). Outline of principal funds in the segment As of September 30, 2024 The funds aim to maximize returns from a medium- to long-term perspective through investments in high-growthpotential companies leveraging AI. SVF1’s investment period has ended, and the remaining undrawn capital is reserved for fixed distributions and operating expenses. Notes: 1. The Company’s committed capital to SVF1 includes approximately $8.2 billion of an obligation that was satisfied by using Arm shares (all said shares have been contributed) and $2.5 billion to be used for an incentive scheme related to SVF1. 2. Effective September 27, 2023, SBGA, the manager of SVF2 and LatAm Funds, may allocate an amount of committed capital from SVF2 to LatAm Funds up to the remaining amount of the $4.0 billion upsize of the additional commitment subscription letter entered into on May 11, 2023, and, in such circumstances, the total commitment to SVF2 will be reduced correspondingly. SoftBank Group Corp. Consolidated Financial Report For the Six-Month Period Ended September 30, 2024 15
  • 18. (Millions of yen) Six months ended September 30 2023 2024 Change Change % Gain on investments at SoftBank Vision Funds*1 181,136 610,388 429,252 237.0% A Gain on investments at SVF1, SVF2, and LatAm Funds 168,466 639,100 470,634 279.4% Realized gain (loss) on investments*2 855,769 (1,298,092) (2,153,861) - Unrealized gain (loss) on valuation of investments (634,182) 1,672,305 2,306,487 - Change in valuation for the fiscal year (633,520) 583,014 1,216,534 - Reclassified to realized gain (loss) recorded in the past fiscal years*2 (662) 1,089,291 1,089,953 - Interest and dividend income from investments 20,812 6,937 (13,875) (66.7%) Derivative gain on investments 4,427 13,418 8,991 203.1% Effect of foreign exchange translation (78,360) 244,532 322,892 - Gain (loss) on other investments 12,670 (28,712) (41,382) - Selling, general and administrative expenses (44,688) (36,065) 8,623 (19.3%) Finance cost (52,532) (20,671) 31,861 (60.7%) Change in third-party interests in SVF (226,265) (421,217) (194,952) 86.2% B Other gain (loss) (55,474) 36,406 91,880 - Segment income (income before income tax) (197,823) 168,841 366,664 - 3. A co-investment program has been introduced for SVF2 and LatAm Funds for the Company’s management. MgmtCo, an investment entity for the co-investment program, participates in the two funds. The interest attributable to MgmtCo is treated as a third-party interest in the Company’s consolidated financial statements. For details, see “(1) Co-investment program with restricted rights to receive distributions” under “16. Related party transactions” in “(7) Notes to Condensed Interim Consolidated Financial Statements” in “2. Condensed Interim Consolidated Financial Statements and Primary Notes.” Financing at SVF SVF1, SVF2, and LatAm Funds may independently engage in borrowings that are nonrecourse to SBG, with the aim of leveraging and maintaining liquidity. Such borrowings include asset-backed finance, which utilizes held assets to enhance returns and distribute to limited partners. Fair value measurement of investments SVF1, SVF2, and LatAm Funds calculate the fair value of their investments at each quarter-end in accordance with IFRS 13 “Fair Value Measurement” and based on the SBIA Global Valuation Policy and the International Private Equity and Venture Capital Valuation Guidelines. For public portfolio companies, fair values of portfolio companies that are traded on stock exchanges are determined using quoted prices, while fair values of those traded on over-thecounter markets are determined using single or multiple factors, such as quoted prices and other observable inputs. For private portfolio companies, one or more valuation methods are used, including the market approach using figures of market comparable companies, the income approach using estimated future cash flows, and the recent transactions method using prices of recent funding rounds and similar transactions. FINANCIAL RESULTS Notes: 1. Gains and losses on investments associated with the change in valuation of SoftBank Vision Funds’ investments in shares in the Company’s subsidiaries (mainly Arm and PayPay Corporation) are included in segment income of the SoftBank Vision Funds segment as gains and losses on investments at SoftBank Vision Funds but are eliminated in consolidation and not included in gains and losses on investments at SoftBank Vision Funds in the consolidated statement of profit or loss. SoftBank Group Corp. Consolidated Financial Report For the Six-Month Period Ended September 30, 2024 16
  • 19. (Billions of U.S. dollars) Investments made during the fiscal year Disposals3 made during the fiscal year Q1 Q2 YTD Q1 Q2 YTD SVF1 - - - 0.81 0.96 1.77 SVF2 0.62 0.62 1.24 0.03 0.05 0.08 Total 0.62 0.62 1.24 0.84 1.01 1.85 (Millions of yen) Six months ended September 30 2023 2024 Change Gain on investments at SVF1 482,174 896,444 414,270 Loss on investments at SVF2 (347,102) (276,475) 70,627 Gain on investments at LatAm Funds 33,394 19,211 (14,183) Gain (loss) on other investments, etc. 12,670 (28,792) (41,462) Gain on investments at SoftBank Vision Funds 181,136 610,388 429,252 2. Unrealized gains and losses on valuation of investments recorded in previous fiscal years related to the investments realized in the fiscal year are reclassified to “Realized gain (loss) on investments.” Investments and disposals by SVF1 and SVF2 Note: Investments include new and follow-ons. Segment income A Gain on investments at SoftBank Vision Funds: ¥610,388 million B Change in third-party interests in SVF: ¥(421,217) million This represents the gains and losses attributable to third-party investors, which are calculated based on the gains and losses on investments at each fund, net of (i) management and performance fees payable to SBIA from SVF1; (ii) management and performance-linked management fees payable to SBGA from SVF2; (iii) management fees, performance-linked management fees, and performance fees payable to SBGA from LatAm Funds; and (iv) operating and other expenses of SVF. For details, see “(2) Third-party interests in SVF” under “4. SoftBank Vision Funds business” in “(7) Notes to Condensed Interim Consolidated Financial Statements” in “2. Condensed Interim Consolidated Financial Statements and Primary Notes.” SoftBank Group Corp. Consolidated Financial Report For the Six-Month Period Ended September 30, 2024 17
  • 20. (Billions of U.S. dollars) Cumulative number of investments Cumulative investment cost Cumulative investment return Cumulative gain*1 Investment gain recorded for the fiscal year Jul - Sep Apr - Sep 102 89.5 112.1 22.6 3.0 5.8 Cumulative number of investments Cumulative investment cost Cumulative investment return Cumulative gain*1 Effects of share exchanges*2 (4) (2.0) (2.0) - Effects of dividends in kind*3 (4) - - - Net of the above effects 94 87.5 110.1 22.6 Number of investments Investment cost Exit price Cumulative realized gain*1 Realized gain (loss) recorded for the fiscal year Jul - Sep Apr - Sep Partial exit - 5.7 16.3 10.6 0.5 Full exit*4 40 38.4 49.5 11.1 (4.9) Total 40 44.1 65.8 21.7 0.0 (4.4) Number of investments Investment cost Fair value Cumulative unrealized valuation loss*7 Unrealized valuation gain (loss) recorded for the fiscal year Jul - Sep Apr - Sep Public*6 18 21.2 19.8 (1.4) 2.8 4.3 Private 44 24.2 24.1 (0.1) (0.0) 1.3 Total 62 45.4 43.9 (1.5) 2.8 5.6 Derivative cost Fair value/ settlement price Cumulative derivative gain Derivative gain (loss) recorded for the fiscal year Jul - Sep Apr - Sep Unsettled 0.0 0.0 0.0 (0.0) Settled (0.0) 1.4 1.4 0.0 Total (0.0) 1.4 1.4 (0.0) 0.0 Interest and dividend income Cumulative income Interest and dividend income recorded for the fiscal year Jul - Sep Apr - Sep Total 1.0 1.0 0.0 0.0 Investment performance As of September 30, 2024 SVF1 Total ((1) + (2) + (3) + (4) below) (Reference) (1) Exited investments (2) Investments before exit (investments held at the second quarter-end)*5 (3) Derivatives (4) Interest and dividend income from investments Notes: * The total and the sum of the breakdown in the table may not match as the amount of each item is rounded to the nearest unit. 1. Before deducting third-party interests, taxes, and expenses 2. For investments involving share exchanges, the acquisition costs of the new investments and the disposal prices (sale prices) of the initially held investments are deducted for the purpose of presenting the cumulative net investment performance. These include share exchanges between Uber Advanced Technologies Group and Aurora Innovation Inc.; PT Tokopedia and PT GoTo Gojek Tokopedia Tbk; Grofers International Pte. Ltd. and Zomato Limited; Zymergen, Inc. and Ginkgo Bioworks Holdings, Inc.; and Candy Digital, Inc. and Fanatics Holdings, Inc. (an existing portfolio company). In addition, SVF1 exchanged all shares in two portfolio companies for shares in their affiliated companies in prior years, which are also existing portfolio companies. The acquisition costs and disposal prices (sale prices) of these investments are also deducted in this section. 3. Investments acquired through dividends in kind from existing portfolio companies are deducted from the investment count. These include two investments acquired from Arm (Treasure Data, Inc. and Acetone Limited (an intermediate holding company that owns approximately 48% of the equity interest in Arm Technology (China) Co., Ltd.)) and two investments acquired from Reef Global SoftBank Group Corp. Consolidated Financial Report For the Six-Month Period Ended September 30, 2024 18
  • 21. (Billions of U.S. dollars) Cumulative number of investments Cumulative investment cost Cumulative investment return Cumulative loss*1 Investment loss recorded for the fiscal year Jul - Sep Apr - Sep 291 53.6 32.6 (21.0) 0.9 (1.7) Cumulative number of investments Cumulative investment cost Cumulative investment return Cumulative loss*1 Effects of financial support to WeWork*2 (5) - - - Effects of share exchanges*3 (2) (0.0) (0.0) - Net of the above effects 284 53.6 32.6 (21.0) Number of investments Investment cost Exit price Cumulative realized loss*1 Realized loss recorded for the fiscal year Jul - Sep Apr - Sep Partial exit - 0.5 0.3 (0.2) (0.1) Full exit*4 18 6.5 3.1 (3.4) (3.8) Total 18 7.0 3.4 (3.6) (0.3) (3.9) Number of investments Investment cost*6 Fair value*6 Cumulative unrealized valuation loss Unrealized valuation gain (loss) recorded for the fiscal year Jul - Sep Apr - Sep Public 16 6.0 3.6 (2.4) 0.0 (1.0) Private 257 40.6 25.6 (15.0) 0.8 (0.8) Total 273 46.6 29.2 (17.4) 0.8 (1.8) Derivative cost Fair value/ settlement price Cumulative derivative gain (loss) Derivative gain recorded for the fiscal year Jul - Sep Apr - Sep Unsettled (0.0) 0.1 0.1 0.1 Settled (0.0) (0.3) (0.3) 0.0 Total (0.0) (0.2) (0.2) 0.1 0.1 Interest and dividend income Cumulative income Interest and dividend income recorded for the fiscal year Jul - Sep Apr - Sep Total 0.2 0.2 - 0.0 Inc. (REEF Proximity Aggregator LLC and Parking Aggregator LLC). 4. Includes disposals (sales) as a result of share exchanges and restructuring of portfolio companies 5. The classification of portfolio companies as public/private is based on their status as of the second quarter-end. 6. Includes DiDi, which is traded in the over-the-counter market 7. For a certain investment that was initially determined to be transferred from the Company to SVF1 but later canceled, any unrealized valuation gains and losses incurred for the fiscal year leading up to the decision to cancel the transfer are excluded in this section. SVF2 Total ((1) + (2) + (3) + (4) below) (Reference) (1) Exited investments (2) Investments before exit (investments held at the second quarter-end)*5 (3) Derivatives (4) Interest and dividend income from investments Notes: * The total and the sum of the breakdown in the table may not match as the amount of each item is rounded to the nearest unit. 1. Before deducting third-party interests, taxes, and expenses 2. The WeWork notes held by SVF2, which constituted four investments, along with the stocks of the newly restructured WeWork, converted from the prepetition claims that SVF2 held against WeWork (constituting one investment), are deducted from the investment count. SoftBank Group Corp. Consolidated Financial Report For the Six-Month Period Ended September 30, 2024 19
  • 22. (Billions of U.S. dollars) Total The Company Third-party investors Committed capital (A) 98.6 33.1 65.5 Drawn capital4 (B) 87.2 29.9 57.3 Return of capital (non-recallable) (C) 42.5 9.2 33.3 Outstanding capital*1 (D) = (B) – (C) 44.7 20.7 24.0 Remaining committed capital (E) = (A) – (B) 11.4 3.2 8.2 (Billions of U.S. dollars) Total Committed capital (A) 60.8 Drawn capital (B) 58.3 Remaining committed capital (C) = (A) – (B) 2.5 Total committed capital 60.8 The Company’s equity commitment to investments outside the scope of the co-investment program 12.6 The Company’s preferred equity commitment to SVF2 LLC*1 33.2 The Company’s equity commitment to SVF2 LLC 12.4 MgmtCo’s equity commitment to SVF2 LLC 2.6 3. For investments involving share exchanges, the acquisition costs of the new investments and the disposal prices (sale prices) of the initially held investments are deducted for the purpose of presenting the cumulative net investment performance. These include the share exchange between XCOM Labs, Inc. and Globalstar, Inc., as well as the share exchange between ODA Group Holding AS and Mathem Holdings AB. 4. Includes disposals (sales) as a result of share exchanges and restructuring of portfolio companies 5. The classification of portfolio companies as public/private is based on their status as of the second quarter-end. 6. The investment cost and fair value of investments before exit in SVF2 include minor ownership percentages in another portfolio company, which were received as part of the consideration for SVF2’s investment in a specific portfolio company. LatAm Funds At the second quarter-end, LatAm Funds posted $6.4 billion in cumulative returns on $7.4 billion in investments, with a gross loss of $1.0 billion since inception. For the period, investment gain was $0.1 billion (¥19.2 billion). Capital deployment As of September 30, 2024 SVF1 Notes: * The Company’s committed capital to SVF1 includes approximately $8.2 billion of an obligation that was satisfied using Arm shares (all said shares have been contributed) and $2.5 billion to be used for an incentive scheme related to SVF1. 1. At the second quarter-end, $8.1 billion of the $24.0 billion of outstanding capital from third-party investors was attributable to preferred equity commitment. SVF2 Note: Remaining committed capital includes recallable return of capital. (Reference: Breakdown of committed capital as of September 30, 2024) Notes: * At the second quarter-end, no capital has been paid by MgmtCo. 1. SVF2 LLC (SVF II Investment Holdings LLC) is a subsidiary of the Company established under SVF2 and indirectly holds investments subject to the co-investment program. SoftBank Group Corp. Consolidated Financial Report For the Six-Month Period Ended September 30, 2024 20
  • 23. For a complete list of portfolio companies and historical quarterly results of SVF1, SVF2, and LatAm Funds, see the Data Sheets under “Earnings Results Briefing” on the Company’s website at https://group.softbank/en/ir/presentations/. At the second quarter-end, total committed capital for LatAm Funds was $7.8 billion, with drawn capital totaling $7.5 billion. SoftBank Group Corp. Consolidated Financial Report For the Six-Month Period Ended September 30, 2024 21
  • 24. Segment income increased by 4.8% YoY, driven by sustained profit growth in the media & EC, consumer, and enterprise businesses, along with PayPay and PayPay Card turning profitable. (Millions of yen) Six months ended September 30 2023 2024 Change Change % Net sales 2,934,041 3,152,377 218,336 7.4% Segment income (income before income tax) 515,232 539,892 24,660 4.8% Depreciation and amortization (362,898) (358,023) 4,875 (1.3%) Gain (loss) on investments 8,622 (16,843) (25,465) - Finance cost (33,021) (41,124) (8,103) 24.5% Other gain 27,757 36,074 8,317 30.0% For more information on SoftBank Corp.’s financial results and business operations, please refer to its website at https://www.softbank.jp/en/corp/ir/. (c) SoftBank Segment OVERVIEW Segment results include the business activities of SoftBank Corp. and its subsidiaries primarily in Japan, such as the provision of mobile services and sale of mobile devices, as well as the provision of broadband, advertising, and commerce services. Under its Beyond Carrier strategy, SoftBank Corp. aims to achieve sustainable growth in its core telecommunications business, while expanding its domains beyond telecommunications through internet services, such as Yahoo! JAPAN and LINE, and the development of businesses that utilize advanced technologies, including AI, IoT, and FinTech, the latter encompassing the cashless payment service PayPay. FINANCIAL RESULTS Segment income was ¥539,892 million, an increase of ¥24,660 million (4.8%) year on year. This was primarily driven by continued profit growth in the media & EC, consumer, and enterprise businesses, as well as the profitability achieved by the main subsidiaries of the financial business: PayPay Corporation and PayPay Card Corporation. In the media & EC business, the increase in income was driven by robust commerce and media sales associated with the growth in account advertising, as well as a gain recorded from the loss of control over multiple subsidiaries (included in “Other gain” in the table above). In the consumer business, the increase in income was primarily due to higher mobile service revenue, product sales, and broadband service revenue. The increase in mobile service revenue was mainly because of a rise in the number of smartphone subscribers and an improvement in Average Revenue Per User. In the enterprise business, income grew primarily due to increased sales of cloud services and other products, spurred by the accelerated digitalization of enterprises. The profitability achieved by PayPay Corporation and PayPay Card Corporation was primarily driven by increased fee income resulting from the expansion of gross merchandise volume, as well as higher interest income due to the growth in the revolving credit balance. Additionally, improvements in profitability were further supported by optimizing fixed costs and streamlining sales promotion expenses primarily through changing campaign designs. The recognition of loss on investments in the period was primarily due to the fair value measurement of written put options granted to certain equity holders other than LY Corporation of an equity method associate in the subsidiary of LY Corporation. SoftBank Group Corp. Consolidated Financial Report For the Six-Month Period Ended September 30, 2024 22
  • 25. Arm’s business continues to benefit from technology companies increasing investments in AI. Arm recorded its highest net sales (U.S. dollar-based) for the period. ◆ Net sales increased by 23.2% YoY in U.S. dollar terms. In yen terms, net sales increased by 33.0%. - Royalty revenue increased by 25.3% YoY (U.S. dollar-based) due to continued penetration of Arm’s latest Armv9 technology, which commands higher royalty revenue per chip. - License and other revenue increased by 20.8% YoY (U.S. dollar-based) with Arm recognizing revenue from a high value, long-term deal signed with a major technology company in the previous fiscal year. In addition, Arm signed multiple other deals with companies developing chips for a wide range of applications, including future smartphones, data centers, networking equipment, automotive, consumer electronics, and AI applications. ◆ Positive segment income due to strong revenue growth (Millions of yen) Six months ended September 30 2023 2024 Change Change % Net sales 205,797 273,807 68,010 33.0% Segment income (income before income tax) (8,439) 3,824 12,263 - (Millions of U.S. dollars) Six months ended September 30 2023 2024 Change Change % Royalty revenue 783 981 198 25.3% License and other revenue 664 802 138 20.8% Total 1,447 1,783 336 23.2% (d) Arm Segment Note: Segment income included amortization expenses of ¥33,997 million for the period and ¥32,149 million for the same period of the previous fiscal year. These expenses are related to intangible assets recognized in the purchase price allocation at the time of the acquisition of Arm. OVERVIEW Arm’s operations primarily consist of licensing semiconductor intellectual property (IP), including the design of energy-efficient microprocessors and associated technologies. Semiconductor industry trends can have a significant impact on Arm’s financial results, both positively and negatively. Industry growth benefits Arm’s royalty revenue, which can grow along with industry sales. Industry growth can also encourage Arm’s customers to increase design activity, creating new opportunities for Arm to license its latest technologies, and thus driving license and other revenue. Arm will continue to increase investments in R&D in order to build the future of computing. Arm is creating CPUs and related technologies, such as graphics processors, AI accelerators, and integrated subsystems, that will enable its customers to develop the next generation of computing devices. FINANCIAL RESULTS Net sales in U.S. dollars Net sales in this section are presented in U.S. dollars as Arm’s revenue is primarily based on U.S. dollars. Net sales for the period reached a record high, increasing by $336 million (23.2%) year on year. Royalty revenue Royalty revenue increased by $198 million (25.3%) year on year, reaching a record high. This was primarily driven by very strong growth in revenue from smartphones, combined with increasing Armv9 technology replacing Armv8 SoftBank Group Corp. Consolidated Financial Report For the Six-Month Period Ended September 30, 2024 23
  • 26. For more information on Arm’s U.S. GAAP-based financial results and business operations, please refer to Arm’s website at https://investors.arm.com/. technology, and with Armv9-based chips delivering around double the royalty revenue compared with equivalent Armv8-based chips. In addition, Arm saw good year-on-year revenue growth from automotive chips as cars are becoming smarter. The growth in revenues from smartphones and automotive was partially offset by weaker sales of chips in networking equipment and IoT devices, both of which are going through a period of inventory drawdown by end-customers. Commentary from chip companies suggests that the inventory downturn may be nearing its end, and Arm expects to see sequential industry growth in some areas in the second half of the fiscal year. License and other revenue License and other revenue increased by $138 million (20.8%) year on year, reaching a record high. This was due to Arm recognizing revenue from a high value, long-term deal signed with a major technology company in the previous fiscal year. In addition, Arm continues to sign licenses with customers who are developing chips for a wide range of applications, including future smartphones, data centers, networking equipment, automotive, consumer electronic devices, and AI applications. The current strong demand for licensing is expected to lay the foundation of a future royalty stream from chips that are to be developed and introduced to the market in the coming years. Segment income Segment income was ¥3,824 million, improving by ¥12,263 million year on year. This was due to Arm’s strong revenue growth, which outpaced the increased costs associated with factors such as the growing number of engineers developing next-generation technology. Starting from the fiscal year, Arm has discontinued its cash-based corporate bonus, with share-based compensation now serving as the primary incentive for employees. Share-based compensation is recorded as an expense in accordance with IFRS 2 “Share-based Payment.” TECHNOLOGY DEVELOPMENT Arm and its licensees made the following technology-related announcements during the period. For details on each technology development, please refer to the press releases posted on the websites of the announcing companies. · In April 2024, Google LLC announced the Google Axion Processors, its first custom Arm-based CPUs designed for the data center, which provide up to 50% better performance and up to 60% better energy efficiency than comparable current generation x86-based processors. · In May 2024, Microsoft Corporation announced its Copilot+ PCs, designed for AI. These are the fastest, most intelligent Windows PCs ever built, and the first generation running on Arm’s energy-efficient, high-performance architecture. · In May 2024, Arm announced the next generation of its CPU and GPU products for smartphones, laptops and consumer electronics. This includes a new compute subsystem that delivers more than a 35% performance improvement for software and games, and over 40% for on-device generative AI, including large language models. · In September 2024, Meta Platforms Inc. and Arm announced a collaboration to optimize Llama 3.2 small and large language models (one billion to 90 billion parameters) to run on Arm-based platforms from consumer electronics to smartphones to data center servers. SoftBank Group Corp. Consolidated Financial Report For the Six-Month Period Ended September 30, 2024 24
  • 27. 1. Status of investment assets ◆ Carrying amount of investments from SVF (FVTPL)*1 decreased by ¥91.2 billion from the previous fiscal year-end to ¥10,923.3 billion.*2 - ¥226.2 billion increase at SVF1: The balance increased by $4.01 billion on a U.S. dollar basis due to an increase of $5.55 billion in the fair value of investments held at the second quarter-end, offset by a decrease of $1.53 billion from divestments. - ¥288.8 billion decrease at SVF2: The balance decreased by $0.38 billion on a U.S. dollar basis, mainly due to decreases of $1.53 billion in the fair value of investments held at the second quarter-end and $0.07 billion from divestments.2 This occurred despite new2 and follow-on investments totaling $1.22 billion. ◆ Carrying amount of investment securities decreased by ¥310.8 billion from the previous fiscal yearend to ¥8,751.1 billion,*2 which included: - Carrying amount of Alibaba shares of ¥3,024.4 billion (a decrease of ¥732.7 billion) - Carrying amount of T-Mobile shares of ¥2,514.2 billion (an increase of ¥238.4 billion) - Carrying amount of Deutsche Telekom shares of ¥946.7 billion (an increase of ¥118.7 billion) 2. Changes in liabilities associated with financing activities ◆ Interest-bearing debt of SBG increased by ¥623.4 billion from the previous fiscal year-end. - The Company issued domestic straight bonds of ¥100.0 billion to wholesale markets in April 2024 and ¥550.0 billion to retail markets in June 2024. The Company redeemed domestic straight bonds of ¥450.0 billion upon maturity in June 2024. - The Company issued U.S. dollar-denominated senior notes of $900 million and euro-denominated senior notes of 900 million euros in July 2024. In the same month, the Company also redeemed U.S. dollardenominated senior notes of $767 million prior to maturity and euro-denominated senior notes of 638 million euros upon maturity. - The Company borrowed $2.9 billion through a term loan in September 2024. ◆ Interest-bearing debt of wholly owned subsidiaries conducting fund procurement decreased by ¥1,666.0 billion from the previous fiscal year-end.*2 - $6.26 billion in financial liabilities relating to sale of shares by prepaid forward contracts was derecognized at the time of the physical settlement of a portion of these contracts using Alibaba shares. - Financial liabilities relating to sale of shares by prepaid forward contracts decreased by $2.85 billion due to the cash settlement of all of such contracts using T-Mobile shares. 3. Changes in equity ◆ Total equity decreased by ¥430.0 billion from the previous fiscal year-end. - Retained earnings increased due to recording net income attributable to owners of the parent of ¥1,005.3 billion. - Continued share repurchase: ¥153.8 billion worth of shares were acquired during the period. - Exchange differences from the translation of foreign operations decreased by ¥1,308.7 billion due to the yen’s appreciation in exchange rates used for translation compared to the previous fiscal year-end. ◆ Ratio of equity attributable to owners of the parent (equity ratio) was 23.7% at the second quarterend, compared with 23.9% at the previous fiscal year-end. (Millions of yen) March 31, 2024 September 30, 2024 Change Change % Total assets 46,724,243 45,346,920 (1,377,323) (2.9%) Total liabilities 33,487,074 32,539,723 (947,351) (2.8%) Total equity 13,237,169 12,807,197 (429,972) (3.2%) (2) Overview of Financial Position Notes: 1. Investments from SVF (FVTPL) do not include SVF’s investments in the Company’s subsidiaries (primarily PayPay Corporation) or investments that were transferred from the Company to the funds and continue to be accounted for using the equity method (and are included in “Investments accounted for using the equity method”) prior to and after such transfer. 2. Includes decreases in the carrying amount due to a 5.7% appreciation of the yen against the U.S. dollar in the foreign currency exchange rate used for translations at the second quarter-end SoftBank Group Corp. Consolidated Financial Report For the Six-Month Period Ended September 30, 2024 25
  • 28. (Millions of yen) March 31, 2024 September 30, 2024 Change Cash and cash equivalents 6,186,874 4,476,300 (1,710,574) Trade and other receivables 2,868,767 2,747,583 (121,184) Derivative financial assets 852,350 300,924 (551,426) A Other financial assets 777,996 963,307 185,311 B Inventories 161,863 198,330 36,467 Other current assets 550,984 422,232 (128,752) Assets classified as held for sale 42,559 1,249,587 1,207,028 C Total current assets 11,441,393 10,358,263 (1,083,130) Property, plant and equipment 1,895,289 2,603,641 708,352 D Right-of-use assets 746,903 843,315 96,412 Goodwill 5,709,874 5,605,437 (104,437) E Intangible assets 2,448,840 2,353,366 (95,474) Costs to obtain contracts 317,650 334,322 16,672 Investments accounted for using the equity method 839,208 611,780 (227,428) Investments from SVF (FVTPL) 11,014,487 10,923,295 (91,192) F SVF1 6,042,046 6,268,204 226,158 SVF2 4,096,880 3,808,036 (288,844) LatAm Funds 875,561 847,055 (28,506) Investment securities 9,061,972 8,751,145 (310,827) G Derivative financial assets 385,528 126,091 (259,437) Other financial assets 2,424,282 2,474,911 50,629 Deferred tax assets 245,954 187,711 (58,243) Other non-current assets 192,863 173,643 (19,220) Total non-current assets 35,282,850 34,988,657 (294,193) Total assets 46,724,243 45,346,920 (1,377,323) Components Main reasons for changes from the previous fiscal year-end Current assets A Derivative financial assets Derivative financial assets related to the prepaid forward contracts using Alibaba shares decreased by ¥620,461 million ($4.02 billion), due to an increase in the price of the shares and the physical settlement of a portion of the contracts. This was partially offset by an increase due to the reclassification of derivative financial assets from non-current assets to current assets, as the settlement date of the relevant contracts fell within one year. B Other financial assets Investments from the asset management subsidiary increased by ¥246,099 million, mainly due to the acquisition of corporate bonds (primarily those of investment grades with short time to maturity). C Assets classified as held for sale ¥1,249,587 million ($8.75 billion) worth of Alibaba shares were reclassified from investment securities to assets classified as held for sale, due to a decision made by September 30, 2024, to use them for physical settlement of a portion of the prepaid forward contracts maturing after October 2024. (a) Assets Reasons for changes by primary component SoftBank Group Corp. Consolidated Financial Report For the Six-Month Period Ended September 30, 2024 26
  • 29. Components Main reasons for changes from the previous fiscal year-end Non-current assets D Property, plant and equipment In conjunction with the additional acquisition of interests in its equity method associate, SBE Global, in July 2024 to convert it into a subsidiary, property, plant and equipment of SBE Global in the amount of ¥636,521 million was recorded. E Goodwill Arm’s goodwill decreased by ¥205,463 million due to a 5.7% appreciation of the yen against the U.S. dollar in exchange rate used for translations at the second quarter-end. F Investments from SVF (FVTPL) The carrying amount decreased mainly due to a 5.7% appreciation of the yen against the U.S. dollar in exchange rates used for translation at the second quarterend. · The carrying amount of investments at SVF1 increased by ¥226.2 billion ($4.01 billion*1). The result reflected an increase of $5.55 billion in the fair value of investments held at the second quarter-end, despite a decrease of $1.53 billion resulting from divestments. · The carrying amount of investments at SVF2 decreased by ¥288.8 billion ($0.38 billion*1). The result mainly reflected decreases of $1.53 billion in the fair value of investments held at the second quarter-end and $0.07 billion resulting from divestments,2 despite new2 and follow-on investments totaling $1.22 billion. For details, see “(b) SoftBank Vision Funds Segment” under “b. Results by Segment” in “(1) Overview of Results of Operations.” G Investment securities · The carrying amount of Alibaba shares decreased by ¥732,692 million, with the balance at the second quarter-end being ¥3,024,371 million ($21.19 billion). ¥1,249,587 million ($8.75 billion) worth of Alibaba shares were reclassified from investment securities to assets classified as held for sale at the second quarter-end, as it was decided by September 30, 2024, to use them for physical settlement of a portion of the prepaid forward contracts maturing after October 2024. In addition, the Company derecognized ¥762,805 million ($4.98 billion) at the time of the physical settlement of a portion of the prepaid forward contracts during the period. These factors outweighed an increase in the carrying amount due to an increase in Alibaba share price (Reference: the share price rose from $72.36 per share as of March 31, 2024 to $106.12 per share as of September 30, 2024). · The carrying amount of T-Mobile shares increased by ¥238,378 million, with the balance at the second quarter-end being ¥2,514,205 million ($17.62 billion). This mainly reflected an increase in the company’s share price (Reference: the share price increased from $163.22 per share as of March 31, 2024 to $206.36 per share as of September 30, 2024), despite the Company selling 6.7 million shares due to a partial exercise of the call options on T-Mobile shares granted to Deutsche Telekom. · The carrying amount of Deutsche Telekom shares*2 increased by ¥118,652 million due to an increase in the company’s share price, with the balance at the second quarter-end being ¥946,688 million ($6.63 billion) (Reference: the share price rose from 22.50 euro per share as of March 31, 2024 to 26.39 euro per share as of September 30, 2024). The carrying amounts of these investment securities also reflected a decrease caused by a 5.7% appreciation of the yen against the U.S. dollar in exchange rates used for translations at the second quarter-end. SoftBank Group Corp. Consolidated Financial Report For the Six-Month Period Ended September 30, 2024 27
  • 30. (Millions of yen) March 31, 2024 September 30, 2024 Change Investment Business of Holding Companies segment*1 3,359,514 2,254,452 (1,105,062) SBG 2,198,869 1,491,011 (707,858) Wholly owned subsidiaries conducting fund procurement 27,223 21,961 (5,262) SB Northstar 794,508 499,225 (295,283) Others 338,914 242,255 (96,659) SoftBank Vision Funds segment 229,887 149,823 (80,064) SVF1 65,748 47,664 (18,084) SVF2 102,063 32,832 (69,231) LatAm Funds 3,084 4,315 1,231 SBIA, SBGA, SBLA Advisers Corp. 58,992 65,012 6,020 SoftBank segment 1,992,873 1,660,618 (332,255) SoftBank Corp. 482,763 352,435 (130,328) LY Corporation 325,391 248,529 (76,862) PayPay Corporation, PayPay Bank Corporation,*2 PayPay Card Corporation 739,759 586,380 (153,379) Others 444,960 473,274 28,314 Arm segment 291,127 213,743 (77,384) Arm and its subsidiaries 291,127 213,743 (77,384) Others*1 313,473 197,664 (115,809) Total 6,186,874 4,476,300 (1,710,574) Notes: 1. Includes the impact of changes in exchange rates between local currencies and the U.S. dollar 2. Includes the impact of changes in exchange rates between the euro and the U.S. dollar, as the Deutsche Telekom shares are held by a U.S. subsidiary of the Company Reference: Cash and cash equivalents by entity Consolidated cash and cash equivalents decreased by ¥1,710.6 billion from the previous fiscal year-end to ¥4,476.3 billion. For details, see “(3) Overview of Cash Flows.” Notes: * The figures are after eliminations in consolidation. 1. From the fiscal year, items have been presented by reportable segment. A portion of the amounts previously included in “Others” at the bottom section of the table is now classified as “Others” in the Investment Business of Holding Companies segment. 2. Cash and cash equivalents of PayPay Bank Corporation at the second quarter-end were ¥341,764 million. SoftBank Group Corp. Consolidated Financial Report For the Six-Month Period Ended September 30, 2024 28
  • 31. (Millions of yen) March 31, 2024 September 30, 2024 Change Interest-bearing debt 8,271,143 8,935,772 664,629 Lease liabilities 149,801 159,135 9,334 Deposits for banking business 1,643,155 1,717,908 74,753 Trade and other payables 2,710,529 2,563,309 (147,220) Derivative financial liabilities 195,090 982,519 787,429 A Other financial liabilities 31,801 72,618 40,817 Income taxes payable 163,226 140,009 (23,217) Provisions 44,704 42,593 (2,111) Other current liabilities 801,285 549,016 (252,269) Liabilities directly relating to assets classified as held for sale 9,561 - (9,561) Total current liabilities 14,020,295 15,162,879 1,142,584 Interest-bearing debt 12,296,381 10,502,224 (1,794,157) Lease liabilities 644,706 729,950 85,244 Third-party interests in SVF 4,694,503 4,020,850 (673,653) B Derivative financial liabilities 41,238 119,104 77,866 Other financial liabilities 57,017 105,363 48,346 Provisions 167,902 128,061 (39,841) Deferred tax liabilities 1,253,039 1,479,502 226,463 Other non-current liabilities 311,993 291,790 (20,203) Total non-current liabilities 19,466,779 17,376,844 (2,089,935) Total liabilities 33,487,074 32,539,723 (947,351) Components Main reasons for changes from the previous fiscal year-end *See “Reference” on the following page for a breakdown of interest-bearing debt. Current liabilities A Derivative financial liabilities · Derivative financial liabilities related to prepaid forward contracts using Alibaba shares increased by ¥841,421 million ($5.92 billion), mainly due to an increase in the company’s share price. · Derivative financial liabilities decreased by ¥70,699 million ($0.47 billion). This was due to the sale of 6.7 million T-Mobile shares as a partial exercise of call options on T-Mobile shares granted to Deutsche Telekom and the expiration of the remaining unexercised call options on June 22, 2024. · Derivative financial liabilities decreased by ¥28,257 million ($0.19 billion) due to the cash settlement of all the prepaid forward contracts using TMobile shares. Non-current liabilities B Third-party interests in SVF The carrying amount decreased due to the distributions and repayments by SVF1 to third-party investors. For details, see “(2) Third-party interests in SVF” under “4. SoftBank Vision Funds business” in “(7) Notes to Condensed Interim Consolidated Financial Statements” in “2. Condensed Interim Consolidated Financial Statements and Primary Notes.” (b) Liabilities Reasons for changes by primary component SoftBank Group Corp. Consolidated Financial Report For the Six-Month Period Ended September 30, 2024 29
  • 32. (Millions of yen) March 31, 2024 September 30, 2024 Change Investment Business of Holding Companies segment*1 14,265,108 13,220,335 (1,044,773) SBG 6,796,406 7,419,156 622,750 Borrowings 462,977 891,376 428,399 A Corporate bonds 6,147,578 6,321,123 173,545 B Lease liabilities 9,351 8,657 (694) Commercial paper 176,500 198,000 21,500 Wholly owned subsidiaries conducting fund procurement*2 7,443,112 5,777,117 (1,665,995) Borrowings 2,270,601 2,187,359 (83,242) Financial liabilities relating to sale of shares by prepaid forward contracts 5,172,511 3,589,758 (1,582,753) C Other 25,590 24,062 (1,528) SoftBank Vision Funds segment 563,842 523,017 (40,825) SVF2 547,894 508,082 (39,812) Borrowings 547,894 508,082 (39,812) SBIA, SBGA, SBLA Advisers Corp. 15,948 14,935 (1,013) Lease liabilities 15,948 14,935 (1,013) SoftBank segment 6,321,094 6,263,209 (57,885) SoftBank Corp. 4,373,826 4,253,020 (120,806) Borrowings 2,994,039 2,882,350 (111,689) Corporate bonds 827,781 907,756 79,975 Lease liabilities 466,005 462,914 (3,091) Commercial paper 86,001 - (86,001) LY Corporation 1,122,485 1,145,428 22,943 Borrowings 591,338 598,897 7,559 Corporate bonds 469,270 469,233 (37) Lease liabilities 61,877 57,298 (4,579) Commercial paper - 20,000 20,000 PayPay Corporation, PayPay Bank Corporation,*3 PayPay Card Corporation 503,714 443,317 (60,397) Other 321,069 421,444 100,375 Arm segment 34,630 39,822 5,192 Arm and its subsidiaries 34,630 39,822 5,192 Lease liabilities 34,630 39,822 5,192 Others*1 177,357 280,698 103,341 Other interest-bearing debt 143,297 253,201 109,904 Lease liabilities 34,060 27,497 (6,563) Total 21,362,031 20,327,081 (1,034,950) Reference: Interest-bearing debt and lease liabilities (current and non-current) Notes: * The figures are after eliminations in consolidation. 1. From the fiscal year, items have been presented by reportable segment. A portion of the amounts previously included in “Others” at the bottom section of the table is now classified as “Others” in the Investment Business of Holding Companies segment. 2. The interest-bearing debt of wholly owned subsidiaries engaged in fund procurement is nonrecourse to SBG. 3. Deposits related to PayPay Bank Corporation’s banking operations are not included in interest-bearing debt. SoftBank Group Corp. Consolidated Financial Report For the Six-Month Period Ended September 30, 2024 30
  • 33. Components Details Investment Business of Holding Companies segment SBG A Borrowings The Company borrowed $2.9 billion through a term loan. B Corporate bonds · Domestic straight bonds of ¥650.0 billion were issued and ¥450.0 billion were redeemed upon maturity. · U.S. dollar-denominated senior notes of $900 million and euro-denominated senior notes of 900 million euros were issued, and U.S. dollar-denominated senior notes of $767 million were redeemed prior to maturity and euro-denominated senior notes of 638 million euros were redeemed upon maturity. All of the above amounts are stated at face value. Wholly owned subsidiaries conducting fund procurement C Financial liabilities relating to sale of shares by prepaid forward contracts · Financial liabilities relating to sale of shares by prepaid forward contracts of ¥964,550 million ($6.26 billion) were derecognized in conjunction with the physical settlement of a portion of the prepaid forward contracts using Alibaba shares. · Financial liabilities relating to sale of shares by prepaid forward contracts decreased by ¥432,165 million ($2.85 billion) due to the cash settlement of all the prepaid forward contracts using T-Mobile shares. With this, the balance of financial liabilities relating to sale of shares by prepaid forward contracts using T-Mobile shares of the second quarter-end became zero. · The carrying amount includes decreases due to a 5.7% appreciation of the yen against the U.S. dollar in exchange rates used for translation at the second quarter-end. For details, see “(2) Transactions for sale of Alibaba shares by prepaid forward contracts” under “6. Interest-bearing debt” in “(7) Notes to Condensed Interim Consolidated Financial Statements” in “2. Condensed Interim Consolidated Financial Statements and Primary Notes.” Reasons for changes from the previous fiscal year-end at core companies SoftBank Group Corp. Consolidated Financial Report For the Six-Month Period Ended September 30, 2024 31
  • 34. (Millions of yen) March 31, 2024 September 30, 2024 Change Common stock 238,772 238,772 - Capital surplus 3,326,093 3,385,885 59,792 Other equity instruments 193,199 193,199 - Retained earnings 1,632,966 2,594,937 961,971 A Treasury stock (22,725) (174,778) (152,053) B Accumulated other comprehensive income 5,793,820 4,508,619 (1,285,201) C Total equity attributable to owners of the parent 11,162,125 10,746,634 (415,491) Non-controlling interests 2,075,044 2,060,563 (14,481) Total equity 13,237,169 12,807,197 (429,972) Components Main reasons for changes from the previous fiscal year-end A Retained earnings Net income attributable to owners of the parent of ¥1,005,319 million was recorded. B Treasury stock The Company acquired 19,117,700 of its own shares for ¥153,785 million in the period in accordance with a Board resolution on August 7, 2024 to repurchase up to ¥500.0 billion of its own shares. C Accumulated other comprehensive income Exchange differences from the translation of foreign operations, which arose from translating foreign subsidiaries and associates into yen, decreased by ¥1,308,691 million mainly due to the yen’s appreciation against the U.S. dollar in exchange rates used for translation at the second quarter-end. (c) Equity Reasons for changes by primary component SoftBank Group Corp. Consolidated Financial Report For the Six-Month Period Ended September 30, 2024 32
  • 35. 1. Cash flows from operating activities Outlays for income taxes: ¥196.2 billion, income tax refunds: ¥163.1 billion 2. Cash flows from investing activities: ¥501.5 billion cash outflow (net) ◆ Payments totaling ¥468.9 billion were made for investment acquisitions, reflecting investments by SBG and its wholly owned subsidiaries and an increase in investments in bonds and other asset management products by PayPay Bank. ◆ Proceeds of ¥299.6 billion from the sale and redemption of investments were primarily a result of the sale of 6.7 million T-Mobile shares in conjunction with the partial exercise of call options by Deutsche Telekom and the sale of U.S. Treasury Bonds ◆ Monetization and investments continued at SoftBank Vision Funds - Payments for acquisition of investments by SVF: ¥188.6 billion - Proceeds from sales of investments by SVF: ¥230.9 billion ◆ Outlays of ¥385.6 billion for the purchase of property, plant and equipment and intangible assets due to capital expenditure mainly at SoftBank 3. Cash flows from financing activities: ¥1,341.4 billion cash outflow (net) ◆ Bonds refinance and share repurchases were made at SBG and distributions and repayments to third-party investors were made at SVF1 - Proceeds from interest-bearing debt: ¥2,677.6 billion · Proceeds at SBG: ¥1,652.2 billion (from issuance of domestic straight bonds of ¥650.0 billion, U.S. dollar-denominated senior notes of $900 million, and euro-denominated senior notes of 900 million euros, as well as a term loan and shortterm borrowings and others totaling ¥701.0 billion) - Repayment of interest-bearing debt: ¥2,570.7 billion · Outlays at SBG: ¥940.0 billion (for redemption of domestic straight bonds of ¥450.0 billion and euro-denominated senior notes of 638 million euros upon maturity, redemption of U.S. dollar-denominated senior notes of $767 million prior to maturity, and repayment of short-term borrowings and others totaling ¥263.7 billion) · Outlays at wholly owned subsidiaries conducting fund procurement: ¥484.7 billion (for cash settlement of the prepaid forward contracts using T-Mobile shares, etc.) - Distributions and repayments to third-party investors at SVF: ¥844.9 billion - Outlays for share repurchase: ¥153.8 billion 4. Balance of cash and cash equivalents at the second quarter-end and its changes ◆ The balance of cash and cash equivalents stood at ¥4,476.3 billion at the second quarter-end, a decrease of ¥1,710.6 billion from the previous fiscal year-end. This was the result of cash flows from operating, investing, and financing activities, together with an effect of exchange rate changes on cash and cash equivalents, etc. due to the yen’s appreciation in exchange rates used for translation. (3) Overview of Cash Flows SIGNIFICANT NON-CASH TRANSACTION During the period, the Company settled a portion of the prepaid forward contracts using Alibaba shares in physical form. This was a non-cash transaction; therefore, it had no impact on the consolidated cash flows. For details, see “15. Supplemental information to the condensed interim consolidated statement of cash flows” under “(7) Notes to Condensed Interim Consolidated Financial Statements” in “2. Condensed Interim Consolidated Financial Statements and Primary Notes.” SoftBank Group Corp. Consolidated Financial Report For the Six-Month Period Ended September 30, 2024 33
  • 36. (Millions of yen) Six months ended September 30 2023 2024 Change Cash flows from operating activities 88,767 179,491 90,724 Cash flows from investing activities (767,376) (501,530) 265,846 Cash flows from financing activities (12,667) (1,341,446) (1,328,779) Effect of exchange rate changes on cash and cash equivalents, etc. 473,936 (47,089) (521,025) Decrease in cash and cash equivalents (217,340) (1,710,574) (1,493,234) Cash and cash equivalents at the beginning of the period 6,925,153 6,186,874 (738,279) Cash and cash equivalents at the end of the period 6,707,813 4,476,300 (2,231,513) Components Primary details Payments for acquisition of investments ¥(468,918) million · SBG and its wholly owned subsidiaries acquired investments for ¥229,669 million (excluding investments in U.S. Treasury Bonds). This mainly included an investment in U.K. company Wayve Technologies Ltd., which develops autonomous driving platforms based on data learning using AI. · PayPay Bank Corporation acquired bonds and other asset management products for ¥159,680 million. Proceeds from sales/redemption of investments ¥299,627 million · The Company sold 6.7 million T-Mobile shares for $670 million due to a partial exercise of the call options on T-Mobile shares granted to Deutsche Telekom. · SBG sold U.S. Treasury Bonds of ¥73,932 million. · PayPay Bank sold investments in bonds and other asset management products of ¥50,150 million. Payments for acquisition of investments by SVF ¥(188,618) million SoftBank Vision Funds invested $1.23 billion in total. Proceeds from sales of investments by SVF ¥230,925 million SoftBank Vision Funds sold investments for a total of $1.51 billion. (a) Cash Flows from Operating Activities Cash flows from operating activities resulted in a net inflow of ¥179,491 million, despite SB Northstar's acquisition of corporate bonds (primarily short-maturity, investment-grade) for the purpose of investing surplus funds. Income tax payments amounted to ¥196,219 million, while income tax refunds totaled ¥163,074 million. The former was primarily due to income tax payments by SoftBank Corp, while the latter was mainly due to SBG receiving a refund of ¥76,724 million from a prior interim tax payment of ¥118,026 million in the previous fiscal year. (b) Cash Flows from Investing Activities Primary components SoftBank Group Corp. Consolidated Financial Report For the Six-Month Period Ended September 30, 2024 34
  • 37. Components Primary details Payments (net) for acquisition of control over subsidiaries ¥(187,916) million The Company acquired additional interests in SBE Global, a U.S. equity method associate that constructs and operates solar power plants, converting it into a subsidiary. The Company also completed the acquisition of U.K.-based Graphcore, a company that designs and develops semiconductor chips specialized for AI and machine learning, which also became a subsidiary. The amount of the item on the left is net of cash and cash equivalents held by acquired companies at the time control was obtained. Purchase of property, plant and equipment, and intangible assets ¥(385,569) million SoftBank Corp. purchased property, plant and equipment, such as telecommunications equipment, and intangible assets, such as software. Collection of loan receivables ¥112,703 million In the second quarter, the Company collected the full amount of loans that it had provided to its former management to acquire T-Mobile shares from T-Mobile in relation to the Company’s sale of T-Mobile shares from June to August 2020. Components Primary details Repayment of short-term interestbearing debt, net ¥(53,870) million*1 (Proceeds and payments for interest-bearing debt (current liabilities) with quick turnover and short maturities) · Short-term borrowings and commercial paper increased by ¥9,712 million (net) at SoftBank Corp. · Short-term borrowings and commercial paper decreased by ¥84,582 million (net) at LY Corporation and its subsidiaries. Proceeds from interest-bearing debt (total of A and B below) ¥2,677,648 million A Proceeds from borrowings ¥1,596,426 million*2 · SBG procured ¥700,957 million through a term loan, short-term borrowings, and commercial paper. · SoftBank Corp. procured ¥685,348 million, primarily through the securitization of installment sales receivable and sale-leaseback transactions. B Proceeds from issuance of corporate bonds ¥1,081,222 million · SBG issued domestic straight bonds totaling ¥100,000 million for the wholesale market and ¥550,000 million for the retail market, along with U.S. dollar-denominated senior notes of $900 million, and eurodenominated senior notes of 900 million euros. · SoftBank Corp. issued domestic straight bonds totaling ¥80,000 million. · LY Corporation issued domestic straight bonds totaling ¥50,000 million. All of the above amounts are stated at face value. (c) Cash Flows from Financing Activities Primary components SoftBank Group Corp. Consolidated Financial Report For the Six-Month Period Ended September 30, 2024 35
  • 38. Components Primary details Repayment of interest-bearing debt (total of A through C below) ¥(2,570,681) million A Repayment of borrowings ¥(1,359,738) million*2 · SBG repaid short-term borrowings and commercial paper amounting to ¥263,696 million. · SoftBank Corp. repaid ¥806,288 million in borrowings made primarily through the securitization of installment sales receivable and saleleaseback transactions. It also repaid ¥86,000 million in commercial paper. B Redemption of corporate bonds ¥(726,277) million · SBG redeemed domestic straight bonds of ¥450,000 million and eurodenominated senior notes of 638 million euros upon maturity and redeemed U.S. dollar-denominated senior notes of $767 million prior to maturity. · LY Corporation redeemed domestic straight bonds totaling ¥50,000 million. All of the above amounts are stated at face value. C Payments for settlement of financial liabilities relating to sale of shares by prepaid forward contracts ¥(484,666) million A wholly owned subsidiary conducting fund procurement paid ¥506,234 million ($3.26 billion) to settle the prepaid forward contracts using TMobile shares in cash. Of this amount, ¥444,489 million ($2.86 billion), corresponding to the settlement of financial liabilities relating to sale of shares by prepaid forward contracts, is included in this item. The remaining ¥61,745 million ($0.40 billion), corresponding to the settlement of derivative financial liabilities, is included in “Other” of cash flows from financing activities. Distribution/repayment from SVF to third-party investors ¥(844,944) million SVF1 made distributions and repayments to third-party investors. Purchase of treasury stock ¥(153,790) million SBG acquired 19,117,700 of its own shares for ¥153,785 million in accordance with a Board resolution on August 7, 2024. Cash dividends paid ¥(32,215) million SBG paid dividends. Cash dividends paid to noncontrolling interests ¥(237,272) million SoftBank Corp., LY Corporation, and other subsidiaries paid dividends to non-controlling interests. Notes: 1. “Repayment of short-term interest-bearing debt, net” represents cash flows from financing activities that meet the requirement of “Reporting cash flows on a net basis” under IFRSs. 2. “Proceeds from borrowings” and “Repayment of borrowings” include proceeds of ¥391,851 million and outlays of ¥511,208 million related to borrowings with a contracted term of one year or less. SoftBank Group Corp. Consolidated Financial Report For the Six-Month Period Ended September 30, 2024 36
  • 39. 1 Interest expenses of SBG include interest expenses of its wholly owned subsidiaries conducting fund procurement. 2 Includes share exchanges, acquisitions, and disposals as a result of restructuring of portfolio companies 3 After deducting transaction fees, etc. 4 Drawn capital of SVF1 excludes the amount repaid to limited partners due to investment plan changes and other reasons after the capital was drawn. Notes to “1. Results of Operations” (4) Forecasts The Company does not provide forecasts of consolidated results of operations as they are difficult to project due to numerous uncertainties affecting earnings. SoftBank Group Corp. Consolidated Financial Report For the Six-Month Period Ended September 30, 2024 37
  • 40. (Millions of yen) As of March 31, 2024 As of September 30, 2024 Assets Current assets Cash and cash equivalents 6,186,874 4,476,300 Trade and other receivables 2,868,767 2,747,583 Derivative financial assets 852,350 300,924 Other financial assets 777,996 963,307 Inventories 161,863 198,330 Other current assets 550,984 422,232 Subtotal 11,398,834 9,108,676 Assets classified as held for sale 42,559 1,249,587 Total current assets 11,441,393 10,358,263 Non-current assets Property, plant and equipment 1,895,289 2,603,641 Right-of-use assets 746,903 843,315 Goodwill 5,709,874 5,605,437 Intangible assets 2,448,840 2,353,366 Costs to obtain contracts 317,650 334,322 Investments accounted for using the equity method 839,208 611,780 Investments from SVF (FVTPL) 11,014,487 10,923,295 Investment securities 9,061,972 8,751,145 Derivative financial assets 385,528 126,091 Other financial assets 2,424,282 2,474,911 Deferred tax assets 245,954 187,711 Other non-current assets 192,863 173,643 Total non-current assets 35,282,850 34,988,657 Total assets 46,724,243 45,346,920 2. Condensed Interim Consolidated Financial Statements and Primary Notes (1) Condensed Interim Consolidated Statement of Financial Position SoftBank Group Corp. Consolidated Financial Report For the Six-Month Period Ended September 30, 2024 38
  • 41. (Millions of yen) As of March 31, 2024 As of September 30, 2024 Liabilities and equity Current liabilities Interest-bearing debt 8,271,143 8,935,772 Lease liabilities 149,801 159,135 Deposits for banking business 1,643,155 1,717,908 Trade and other payables 2,710,529 2,563,309 Derivative financial liabilities 195,090 982,519 Other financial liabilities 31,801 72,618 Income taxes payable 163,226 140,009 Provisions 44,704 42,593 Other current liabilities 801,285 549,016 Subtotal 14,010,734 15,162,879 Liabilities directly relating to assets classified as held for sale 9,561 - Total current liabilities 14,020,295 15,162,879 Non-current liabilities Interest-bearing debt 12,296,381 10,502,224 Lease liabilities 644,706 729,950 Third-party interests in SVF 4,694,503 4,020,850 Derivative financial liabilities 41,238 119,104 Other financial liabilities 57,017 105,363 Provisions 167,902 128,061 Deferred tax liabilities 1,253,039 1,479,502 Other non-current liabilities 311,993 291,790 Total non-current liabilities 19,466,779 17,376,844 Total liabilities 33,487,074 32,539,723 Equity Equity attributable to owners of the parent Common stock 238,772 238,772 Capital surplus 3,326,093 3,385,885 Other equity instruments 193,199 193,199 Retained earnings 1,632,966 2,594,937 Treasury stock (22,725) (174,778) Accumulated other comprehensive income 5,793,820 4,508,619 Total equity attributable to owners of the parent 11,162,125 10,746,634 Non-controlling interests 2,075,044 2,060,563 Total equity 13,237,169 12,807,197 Total liabilities and equity 46,724,243 45,346,920 SoftBank Group Corp. Consolidated Financial Report For the Six-Month Period Ended September 30, 2024 39
  • 42. (Millions of yen) Six-month period ended September 30, 2023 Six-month period ended September 30, 2024 Net sales 3,227,060 3,469,922 Cost of sales (1,494,743) (1,618,778) Gross profit 1,732,317 1,851,144 Gain on investments Gain (loss) on investments at Investment Business of Holding Companies (413,530) 2,116,759 Gain (loss) on investments at SoftBank Vision Funds (583,282) 599,778 Gain (loss) on other investments 33,257 (65,511) Total gain on investments (963,555) 2,651,026 Selling, general and administrative expenses (1,354,072) (1,433,070) Finance cost (295,184) (283,710) Foreign exchange gain (loss) (648,086) 289,044 Derivative gain (loss) (excluding gain (loss) on investments) 701,718 (1,477,966) Change in third-party interests in SVF (226,265) (421,217) Other gain 145,702 285,892 Income before income tax (907,425) 1,461,143 Income taxes (197,728) (223,777) Net income (1,105,153) 1,237,366 Net income attributable to Owners of the parent (1,408,727) 1,005,319 Non-controlling interests 303,574 232,047 Net income (1,105,153) 1,237,366 Earnings per share Basic earnings per share (Yen) (971.65) 680.70 Diluted earnings per share (Yen) (974.03) 679.37 (2) Condensed Interim Consolidated Statement of Profit or Loss and Condensed Interim Consolidated Statement of Comprehensive Income Condensed Interim Consolidated Statement of Profit or Loss SoftBank Group Corp. Consolidated Financial Report For the Six-Month Period Ended September 30, 2024 40
  • 43. (Millions of yen) Six-month period ended September 30, 2023 Six-month period ended September 30, 2024 Net income (1,105,153) 1,237,366 Other comprehensive income, net of tax Items that will not be reclassified to profit or loss Equity financial assets at FVTOCI 10,059 (639) Share of other comprehensive income of associates - 80 Total items that will not be reclassified to profit or loss 10,059 (559) Items that may be reclassified subsequently to profit or loss Debt financial assets at FVTOCI (1,220) 329 Cash flow hedges (4,755) 17,863 Exchange differences on translating foreign operations 1,775,444 (1,316,379) Share of other comprehensive income of associates (5,216) (462) Total items that may be reclassified subsequently to profit or loss 1,764,253 (1,298,649) Total other comprehensive income, net of tax 1,774,312 (1,299,208) Total comprehensive income 669,159 (61,842) Total comprehensive income attributable to Owners of the parent 377,178 (281,127) Non-controlling interests 291,981 219,285 Total comprehensive income 669,159 (61,842) Condensed Interim Consolidated Statement of Comprehensive Income SoftBank Group Corp. Consolidated Financial Report For the Six-Month Period Ended September 30, 2024 41
  • 44. (Millions of yen) Three-month period ended September 30, 2023 Three-month period ended September 30, 2024 Net sales 1,669,553 1,768,175 Cost of sales (769,311) (837,652) Gross profit 900,242 930,523 Gain on investments Gain on investments at Investment Business of Holding Companies 276,167 1,548,826 Gain (loss) on investments at SoftBank Vision Funds (570,239) 567,392 Gain (loss) on other investments 29,474 (24,904) Total gain on investments (264,598) 2,091,314 Selling, general and administrative expenses (705,992) (713,384) Finance cost (155,583) (146,106) Foreign exchange gain (loss) (183,444) 732,951 Derivative loss (excluding gain (loss) on investments) (147,911) (1,538,470) Change in third-party interests in SVF (168,184) (215,963) Other gain (loss) (5,761) 94,580 Income before income tax (731,231) 1,235,445 Income taxes (57,728) (8,544) Net income (788,959) 1,226,901 Net income attributable to Owners of the parent (931,111) 1,179,600 Non-controlling interests 142,152 47,301 Net income (788,959) 1,226,901 Earnings per share Basic earnings per share (Yen) (638.70) 804.72 Diluted earnings per share (Yen) (639.90) 803.25 For the three-month period ended September 30 Condensed Interim Consolidated Statement of Profit or Loss SoftBank Group Corp. Consolidated Financial Report For the Six-Month Period Ended September 30, 2024 42
  • 45. (Millions of yen) Three-month period ended September 30, 2023 Three-month period ended September 30, 2024 Net income (788,959) 1,226,901 Other comprehensive income, net of tax Items that will not be reclassified to profit or loss Equity financial assets at FVTOCI 1,753 306 Share of other comprehensive income of associates - 80 Total items that will not be reclassified to profit or loss 1,753 386 Items that may be reclassified subsequently to profit or loss Debt financial assets at FVTOCI (1,488) 1,029 Cash flow hedges 1,052 12,632 Exchange differences on translating foreign operations 522,600 (2,439,004) Share of other comprehensive income of associates (1,660) 72 Total items that may be reclassified subsequently to profit or loss 520,504 (2,425,271) Total other comprehensive income, net of tax 522,257 (2,424,885) Total comprehensive income (266,702) (1,197,984) Total comprehensive income attributable to Owners of the parent (402,575) (1,231,611) Non-controlling interests 135,873 33,627 Total comprehensive income (266,702) (1,197,984) Condensed Interim Consolidated Statement of Comprehensive Income SoftBank Group Corp. Consolidated Financial Report For the Six-Month Period Ended September 30, 2024 43
  • 46. (Millions of yen) Equity attributable to owners of the parent Common stock Capital surplus Other equity instruments Retained earnings Treasury stock Accumulated other comprehensive income Total As of April 1, 2023 238,772 2,652,790 414,055 2,006,238 (38,791) 3,756,785 9,029,849 Comprehensive income Net income - - - (1,408,727) - - (1,408,727) Other comprehensive income - - - - - 1,785,905 1,785,905 Total comprehensive income - - - (1,408,727) - 1,785,905 377,178 Transactions with owners and other transactions Cash dividends - - - (32,187) - - (32,187) Distribution to owners of other equity instruments - - - (16,708) - - (16,708) Redemption and cancellation of other equity instruments - (823) (220,856) (56,081) - - (277,760) Transfer of accumulated other comprehensive income to retained earnings - - - (926) - 926 - Purchase and disposal of treasury stock - 823 - - 14,896 - 15,719 Changes from loss of control - - - - - - - Changes in interests in subsidiaries - 673,405 - - - - 673,405 Changes in interests in associates’ capital surplus - (91) - - - - (91) Share-based payment transactions - (6,618) - - - - (6,618) Other - - - - - - - Total transactions with owners and other transactions - 666,696 (220,856) (105,902) 14,896 926 355,760 As of September 30, 2023 238,772 3,319,486 193,199 491,609 (23,895) 5,543,616 9,762,787 (3) Condensed Interim Consolidated Statement of Changes in Equity For the six-month period ended September 30, 2023 SoftBank Group Corp. Consolidated Financial Report For the Six-Month Period Ended September 30, 2024 44
  • 47. (Millions of yen) Noncontrolling interests Total equity As of April 1, 2023 1,619,366 10,649,215 Comprehensive income Net income 303,574 (1,105,153) Other comprehensive income (11,593) 1,774,312 Total comprehensive income 291,981 669,159 Transactions with owners and other transactions Cash dividends (145,267) (177,454) Distribution to owners of other equity instruments - (16,708) Redemption and cancellation of other equity instruments - (277,760) Transfer of accumulated other comprehensive income to retained earnings - - Purchase and disposal of treasury stock - 15,719 Changes from loss of control (5,216) (5,216) Changes in interests in subsidiaries 81,160 754,565 Changes in interests in associates’ capital surplus - (91) Share-based payment transactions 63,384 56,766 Other 3,074 3,074 Total transactions with owners and other transactions (2,865) 352,895 As of September 30, 2023 1,908,482 11,671,269 SoftBank Group Corp. Consolidated Financial Report For the Six-Month Period Ended September 30, 2024 45
  • 48. (Millions of yen) Equity attributable to owners of the parent Common stock Capital surplus Other equity instruments Retained earnings Treasury stock Accumulated other comprehensive income Total As of April 1, 2024 238,772 3,326,093 193,199 1,632,966 (22,725) 5,793,820 11,162,125 Comprehensive income Net income - - - 1,005,319 - - 1,005,319 Other comprehensive income - - - - - (1,286,446) (1,286,446) Total comprehensive income - - - 1,005,319 - (1,286,446) (281,127) Transactions with owners and other transactions Cash dividends - - - (32,250) - - (32,250) Distribution to owners of other equity instruments - - - (9,475) - - (9,475) Transfer of accumulated other comprehensive income to retained earnings - - - (1,245) - 1,245 - Purchase and disposal of treasury stock - - - (378) (152,053) - (152,431) Changes from loss of control - - - - - - - Changes in interests in subsidiaries - 58,216 - - - - 58,216 Share-based payment transactions - (381) - - - - (381) Other - 1,957 - - - - 1,957 Total transactions with owners and other transactions - 59,792 - (43,348) (152,053) 1,245 (134,364) As of September 30, 2024 238,772 3,385,885 193,199 2,594,937 (174,778) 4,508,619 10,746,634 For the six-month period ended September 30, 2024 SoftBank Group Corp. Consolidated Financial Report For the Six-Month Period Ended September 30, 2024 46
  • 49. (Millions of yen) Noncontrolling interests Total equity As of April 1, 2024 2,075,044 13,237,169 Comprehensive income Net income 232,047 1,237,366 Other comprehensive income (12,762) (1,299,208) Total comprehensive income 219,285 (61,842) Transactions with owners and other transactions Cash dividends (237,384) (269,634) Distribution to owners of other equity instruments - (9,475) Transfer of accumulated other comprehensive income to retained earnings - - Purchase and disposal of treasury stock - (152,431) Changes from loss of control (26,378) (26,378) Changes in interests in subsidiaries 17,510 75,726 Share-based payment transactions 12,330 11,949 Other 156 2,113 Total transactions with owners and other transactions (233,766) (368,130) As of September 30, 2024 2,060,563 12,807,197 SoftBank Group Corp. Consolidated Financial Report For the Six-Month Period Ended September 30, 2024 47
  • 50. (Millions of yen) Six-month period ended September 30, 2023 Six-month period ended September 30, 2024 Cash flows from operating activities Net income (1,105,153) 1,237,366 Depreciation and amortization 421,554 418,240 Loss (gain) on investments at Investment Business of Holding Companies 392,379 (2,103,529) Loss (gain) on investments at SoftBank Vision Funds 583,282 (599,778) Finance cost 295,184 283,710 Foreign exchange loss (gain) 648,086 (289,044) Derivative (gain) loss (excluding (gain) loss on investments) (701,718) 1,477,966 Change in third-party interests in SVF 226,265 421,217 (Gain) loss on other investments and other gain (178,959) (220,381) Income taxes 197,728 223,777 Decrease (increase) in investments from asset management subsidiaries 19,764 (281,388) Increase in trade and other receivables (119,623) (1,757) Increase in inventories (3,493) (38,973) Increase (decrease) in trade and other payables 24,883 (152,435) Other (86,014) (57,930) Subtotal 614,165 317,061 Interest and dividends received 144,548 127,434 Interest paid (231,216) (231,859) Income taxes paid (506,154) (196,219) Income taxes refunded 67,424 163,074 Net cash provided by operating activities 88,767 179,491 (4) Condensed Interim Consolidated Statement of Cash Flows SoftBank Group Corp. Consolidated Financial Report For the Six-Month Period Ended September 30, 2024 48
  • 51. (Millions of yen) Six-month period ended September 30, 2023 Six-month period ended September 30, 2024 Cash flows from investing activities Payments for acquisition of investments (547,838) (468,918) Proceeds from sales/redemption of investments 84,929 299,627 Payments for acquisition of investments by SVF (187,324) (188,618) Proceeds from sales of investments by SVF 279,288 230,925 Payments for acquisition of investments by asset management subsidiaries (76,877) - Payments (net) for acquisition of control over subsidiaries (34,589) (187,916) Proceeds (net) from loss of control over subsidiaries 96,333 94,863 Purchase of property, plant and equipment, and intangible assets (361,042) (385,569) Payments for loan receivables (68,728) (7,202) Collection of loan receivables 75,594 112,703 Payments into time deposits (65,192) (24,931) Proceeds from withdrawal of time deposits 39,286 41,304 Other (1,216) (17,798) Net cash used in investing activities (767,376) (501,530) Cash flows from financing activities Proceeds in (repayment of) short-term interest-bearing debt, net 297,584 (53,870) Proceeds from interest-bearing debt 3,443,973 2,677,648 Repayment of interest-bearing debt (3,694,465) (2,570,681) Repayment of lease liabilities (115,010) (96,899) Distribution/repayment from SVF to third-party investors (239,971) (844,944) Proceeds from the partial sales of shares of subsidiaries to non-controlling interests 745,082 - Redemption of other equity instruments (277,760) - Distribution to owners of other equity instruments (16,708) (9,475) Purchase of treasury stock (2) (153,790) Cash dividends paid (32,144) (32,215) Cash dividends paid to non-controlling interests (144,092) (237,272) Other 20,846 (19,948) Net cash used in financing activities (12,667) (1,341,446) Effect of exchange rate changes on cash and cash equivalents 473,936 (80,100) Increase in cash and cash equivalents relating to transfer of assets classified as held for sale - 33,011 Decrease in cash and cash equivalents (217,340) (1,710,574) Cash and cash equivalents at the beginning of the period 6,925,153 6,186,874 Cash and cash equivalents at the end of the period 6,707,813 4,476,300 SoftBank Group Corp. Consolidated Financial Report For the Six-Month Period Ended September 30, 2024 49
  • 52. Company names / Abbreviations Definition SoftBank Group Corp. SoftBank Group Corp. (stand-alone basis) The Company SoftBank Group Corp. and its subsidiaries Each of the following names or abbreviations indicates the respective company and its subsidiaries, if any. SB Northstar or the asset management subsidiary SB Northstar LP SVF1 SoftBank Vision Fund L.P. and its alternative investment vehicles SVF2 SoftBank Vision Fund II-2 L.P. SVF2 LLC SVF II Investment Holdings LLC LatAm Funds SBLA Latin America Fund LLC SLA LLC SLA Holdco II LLC SVF SVF1, SVF2, and LatAm Funds SBIA SB Investment Advisers (UK) Limited SBGA SB Global Advisers Limited Arm Arm Holdings plc or Arm Limited* SBE Global SBE Global, LP Fortress Fortress Investment Group LLC WeWork WeWork Inc. T-Mobile T-Mobile US, Inc. Alibaba Alibaba Group Holding Limited MgmtCo MASA USA LLC (5) Definitions of Company Names and Abbreviations Used in Condensed Interim Consolidated Financial Statements and Primary Notes Company names and abbreviations used in the condensed interim consolidated financial statements and primary notes, unless otherwise stated or interpreted differently in the context, are as follows: Note: * A corporate reorganization was undertaken in August 2023, pursuant to which Arm Holdings Limited, a former subsidiary of Arm Limited, acquired all the issued ordinary shares of Arm Limited, thereby making it a wholly-owned subsidiary. Subsequently, Arm Holdings Limited changed its name to Arm Holdings plc and was listed on the Nasdaq Global Select Market through an initial public offering on September 14, 2023. SoftBank Group Corp. Consolidated Financial Report For the Six-Month Period Ended September 30, 2024 50
  • 53. (6) Significant Doubt about Going Concern Assumption There are no applicable items. (7) Notes to Condensed Interim Consolidated Financial Statements 1. Changes in presentation (Condensed interim consolidated statement of cash flows) Cash flows from financing activities Proceeds from (repayment of) borrowings with short maturities and quick turnover in some subsidiaries were previously presented on a gross basis and included in “Proceeds from interest-bearing debt” and “Repayment of interest-bearing debt” and they are presented on a net basis and included in “Proceeds in (repayment of) short-term interest-bearing debt, net” for the six-month period ended September 30, 2024. In order to reflect the change in presentation, for the six-month period ended September 30, 2023, “Proceeds from interest-bearing debt” of ¥339,700 million and “Repayment of interest-bearing debt” of ¥(328,800) million are reclassified as “Proceeds in (repayment of) short-term interest-bearing debt, net” of ¥10,900 million. 2. Material accounting policies Material accounting policies applied to the condensed interim consolidated financial statements are consistent with the accounting policies applied to the consolidated financial statements for the fiscal year ended March 31, 2024. In addition, income taxes for the six-month period ended September 30, 2024, are calculated based on the estimated effective tax rate for the fiscal year. Material accounting policies for the SoftBank Vision Funds segment are consistent with the accounting policies applied to the consolidated financial statements for the fiscal year ended March 31, 2024. The details are described as follows. (Material accounting policies for the SoftBank Vision Funds segment) For SVF1, SVF2, and LatAm Funds, the Company applies the following accounting policies. (1) Consolidation of SVF1, SVF2, and LatAm Funds by the Company SVF1 and SVF2 are limited partnerships established by their respective general partners, which are whollyowned subsidiaries of the Company (SVF2 owns limited liability companies including SVF2 LLC) and are qualified as structured entities by their forms of organization. SVF1 and SVF2 are consolidated by the Company for the following reasons. As of September 30, 2024, SVF1 and SVF2 are managed by SBIA and SBGA, respectively, which are whollySoftBank Group Corp. Consolidated Financial Report For the Six-Month Period Ended September 30, 2024 51
  • 54. owned subsidiaries of the Company in the UK. SVF1 and SVF2 make investment decisions through each investment committee, which was established in SBIA and SBGA, respectively. As such, the Company has power as defined under IFRS 10 “Consolidated Financial Statements” over SVF1 and SVF2. Furthermore, SBIA receives performance fees and SBGA receives performance-linked management fees. The Company receives distributions attributable to limited partners based on the investment performance as returns from SVF1 and SVF2. The Company has the ability to affect those returns through its power over SVF1 and SVF2, and therefore, the Company is deemed to have control as stipulated in IFRS 10 “Consolidated Financial Statements” over SVF1 and SVF2. LatAm Funds is a limited liability company in which a wholly-owned subsidiary of the Company invests (LatAm Funds owns limited partnerships and the other forms of entities). LatAm Funds is consolidated by the Company as it holds more than one-half of the voting rights of LatAm Funds. Inter-company transactions, such as management fees and performance fees to SBIA paid or to be paid, as applicable, from SVF1, and management fees, performance-linked management fees, and performance fees to SBGA paid or to be paid, as applicable, from SVF2 or LatAm Funds, are eliminated in consolidation. (2) Portfolio company investments made by SVF1, SVF2, and LatAm Funds a. Investments in subsidiaries Of the portfolio company investments made by SVF1, SVF2, and LatAm Funds, the portfolio companies that the Company is deemed to control under IFRS 10 “Consolidated Financial Statements” are subsidiaries of the Company. Accordingly, their results of operations, assets, and liabilities are included in the Company’s condensed interim consolidated financial statements. Gain and loss on investments in the subsidiaries of the Company which are recognized in SVF1, SVF2, and LatAm Funds are eliminated in consolidation. b. Investments in associates and joint ventures Of the portfolio company investments made by SVF1, SVF2, and LatAm Funds, the portfolio companies over which the Company has significant influence under IAS 28 “Investments in Associates and Joint Ventures” are associates of the Company, and the portfolio companies that are joint ventures of the Company when, as defined under IFRS 11 “Joint Arrangements,” SVF1, SVF2, and LatAm Funds have joint control with other investors under contractual arrangements and the investors have rights to the net assets of the arrangement. The investments in associates and joint ventures of the Company made by SVF1, SVF2, and LatAm Funds are accounted for as financial assets at FVTPL in accordance with Paragraph 18 of IAS 28 “Investments in Associates and Joint Ventures” and presented as “Investments from SVF (FVTPL)” in the condensed interim consolidated statement of financial position. The payments for these investments are presented as “Payments for acquisition of investments by SVF” and the proceeds from sales of these investments are presented as “Proceeds from sales of investments by SVF” under cash flows from investing activities in the condensed interim consolidated statement of cash flows. If the investments in associates and joint ventures that were transferred from SoftBank Group Corp. and its SoftBank Group Corp. Consolidated Financial Report For the Six-Month Period Ended September 30, 2024 52
  • 55. subsidiaries to SVF1, SVF2, or LatAm Funds were accounted for using the equity method prior to the transfer, these investments continue to be accounted for using the equity method after the transfer to SVF1, SVF2, or LatAm Funds and presented as “Investments accounted for using the equity method” in the condensed interim consolidated statement of financial position. Gain and loss on the investments, which were recognized in SVF1, SVF2, or LatAm Funds are eliminated in consolidation and gain and loss on the investments accounted for using the equity method are presented as “Other gain (loss)” in the condensed interim consolidated statement of profit or loss. c. Other investments Investments other than those in associates or joint ventures of the Company made by SVF1, SVF2, and LatAm Funds are accounted for as financial assets at FVTPL. The presentation of these investments in the condensed interim consolidated statement of financial position and the condensed interim consolidated statement of cash flows is the same as the above “b. Investments in associates and joint ventures.” (3) Contribution from limited partners in SVF1 and SVF2, and investors in LatAm Funds, SVF2 LLC, and SLA LLC (collectively, “SVF Investors”) a. Contribution from SVF Investors other than the Company (“Third-Party Investors,” and each a “Third-Party Investor”) The interests attributable to Third-Party Investors in SVF1, SVF2, and LatAm Funds are classified as financial liabilities, “Third-party interests in SVF” in the condensed interim consolidated statement of financial position, due to the predetermined finite life and contractual payment provision to each of ThirdParty Investors at the end of the finite life within the constitutional agreements relating to SVF1, SVF2, and LatAm Funds. The liabilities are classified as “financial liabilities measured at amortized cost” upon initial recognition. The carrying amounts attributable to Third-Party Investors represent the amounts that would be distributed in accordance with the constitutional agreements in a theoretical liquidation scenario at the end of each quarter. Third-Party Investor in SVF2 and LatAm Funds is entitled to make full or partial payments of its investments and related adjustments at any point in time, at its discretion, from the date it became an investor in SVF2 LLC or SLA LLC to the end of company life of SVF2 LLC or SLA LLC, and as of September 30, 2024, the Company has recognized receivables from Third-Party Investor. The receivables are included in “Other financial assets (non-current)” in the condensed interim consolidated statement of financial position. “Third-party interests in SVF” fluctuates due to the results of SVF1, SVF2, and LatAm Funds in addition to contributions from Third-Party Investors, and distributions and repayments of investments to Third-Party Investors. The fluctuations due to the results of SVF1, SVF2, and LatAm Funds are presented as “Change in third-party interests in SVF” in the condensed interim consolidated statement of profit or loss. Contributions from Third-Party Investors are included in “Contributions into SVF from third-party investors” under cash flows from financing activities in the condensed interim consolidated statement of cash flows. The distributions and repayments of investments to Third-Party Investors are included in “Distribution/repayment from SVF to third-party investors” under cash flows from financing activities in the condensed interim SoftBank Group Corp. Consolidated Financial Report For the Six-Month Period Ended September 30, 2024 53
  • 56. consolidated statement of cash flows. No cash contributions into SVF2 and LatAm Funds from Third-Party Investors and no cash distributions/repayments from SVF2 and LatAm Funds to Third-Party Investors were made as of September 30, 2024. Uncalled committed capital from Third-Party Investors is not subject to IFRS 9 “Financial Instruments,” and, therefore, such amount is not recorded in the condensed interim consolidated statement of financial position. b. Contribution from the Company Contributions to SVF1, SVF2, and LatAm Funds from the Company are eliminated in consolidation. SoftBank Group Corp. Consolidated Financial Report For the Six-Month Period Ended September 30, 2024 54
  • 57. 3. Segment information (1) Description of reportable segments The Company’s reportable segments are components of business activities for which discrete financial information is available, and such information is regularly reviewed by the Company’s Board of Directors in order to make decisions about the allocation of resources and assess its performance. The Company has four reportable segments, the Investment Business of Holding Companies segment, the SoftBank Vision Funds segment, the SoftBank segment, and the Arm segment. The Investment Business of Holding Companies segment conducts, mainly through SoftBank Group Corp. as a strategic investment holding company, investment activities in a wide range of sectors in Japan and overseas directly or through subsidiaries of the Company. The Investment Business of Holding Companies segment consists of SoftBank Group Corp., SoftBank Group Capital Limited, SoftBank Group Japan Corporation, SoftBank Group Overseas GK, SB Northstar that is an asset management subsidiary, and certain subsidiaries of the Company that conduct investment or funding. Gain and loss on investments at Investment Business of Holding Companies consist of gain and loss arising from investments held directly by SoftBank Group Corp. or through subsidiaries of the Company. However, gain and loss on investments relating to investments in subsidiaries, including dividend income from subsidiaries and impairment loss on investments in subsidiaries, are excluded. The SoftBank Vision Funds segment conducts, mainly through SVF1, SVF2, and LatAm Funds, investment activities in a wide range of technology sectors. Primarily, gain and loss on investments at SVF1, SVF2, LatAm Funds, and others consist of gain and loss arising from investments held by SVF1, SVF2, and LatAm Funds including the investment in the Company’s subsidiary. The SoftBank segment provides, mainly through SoftBank Corp., mobile services, sale of mobile devices, broadband services, and solution services in Japan, through LY Corporation, media, advertising and commerce related services, and through PayPay Corporation, payment and financial services. The Arm segment provides, through Arm, designs of microprocessor intellectual property and related technology, sale of software tools, and related services. Information on business segments, which is not included in the reportable segments, is classified as “Other.” “Other” includes mainly Fortress,*SBE Global, the Fukuoka SoftBank HAWKS-related operations, and others. “Reconciliations” includes an elimination of intersegment transactions, as well as an elimination of gain and loss on the investment in shares in Arm and PayPay Corporation, subsidiaries of the Company, and others, which are included in segment income of the SoftBank Vision Funds segment. Note: * For the six-month period ended September 30, 2024, all interests in Fortress held by a subsidiary of the Company, were sold to a subsidiary of Mubadala Investment Company PJSC. Upon completion of the transaction, Fortress is no longer a subsidiary of the Company. SoftBank Group Corp. Consolidated Financial Report For the Six-Month Period Ended September 30, 2024 55
  • 58. (2) Net sales and income of reportable segments Income of reportable segments is defined as “Income before income tax.” As in the condensed interim consolidated statement of profit or loss, “Gain (loss) on investments” included in segment income includes realized gain and loss from investments in financial assets at FVTPL for which investment performance is measured at fair value, unrealized gain and loss on valuation of investments, dividend income from investments, derivative gain and loss relating to investments in financial assets at FVTPL, and realized gain and loss from investments accounted for using the equity method. The Investment Business of Holding Companies segment calculates its segment income by eliminating gain and loss on investments relating to investments in subsidiaries, including dividend income from subsidiaries and impairment loss on investments in subsidiaries. In August 2023, Arm shares held by SVF1 were sold to a wholly-owned subsidiary of the Company classified as the Investment Business of Holding Companies segment. The transaction price was established by reference to the terms of a prior contractual arrangement between the parties. The details are described in “Notes 2” in “b. Segment income arising from the SoftBank Vision Funds business” in “(1) Income and loss arising from the SoftBank Vision Funds business” under “Note 4. SoftBank Vision Funds business.” In addition, intersegment transaction prices other than the above are determined under the same general business conditions as applied for external customers. SoftBank Group Corp. Consolidated Financial Report For the Six-Month Period Ended September 30, 2024 56
  • 59. (Millions of yen) Reportable segments Investment Business of Holding Companies SoftBank Vision Funds SoftBank Arm Net sales Customers - - 2,932,294 205,797 Intersegment - - 1,747 - Total - - 2,934,041 205,797 Segment income (543,252) (197,823) 515,232 (8,439) Depreciation and amortization (1,584) (1,050) (362,898) (45,630) Gain (loss) on investments (413,530) 181,136 8,622 405 Finance cost (209,642) (52,532) (33,021) (679) Foreign exchange gain (loss) (650,131) (649) (1,238) 3,546 Derivative gain (excluding gain (loss) on investments) 700,386 - 1,222 110 Total Other Reconciliations Consolidated Net sales Customers 3,138,091 88,969 - 3,227,060 Intersegment 1,747 7,493 (9,240) - Total 3,139,838 96,462 (9,240) 3,227,060 Segment income (234,282) 84,337 (757,480) (907,425) Depreciation and amortization (411,162) (10,392) - (421,554) Gain (loss) on investments (223,367) 18,713 (758,901) (963,555) Finance cost (295,874) (7,805) 8,495 (295,184) Foreign exchange gain (loss) (648,472) 386 - (648,086) Derivative gain (excluding gain (loss) on investments) 701,718 - - 701,718 For the six-month period ended September 30, 2023 SoftBank Group Corp. Consolidated Financial Report For the Six-Month Period Ended September 30, 2024 57
  • 60. (Millions of yen) Reportable segments Investment Business of Holding Companies SoftBank Vision Funds* SoftBank Arm Net sales Customers - - 3,151,049 267,230 Intersegment - - 1,328 6,577 Total - - 3,152,377 273,807 Segment income 664,366 168,841 539,892 3,824 Depreciation and amortization (1,518) (1,175) (358,023) (49,672) Gain (loss) on investments 2,116,759 610,388 (16,843) 275 Finance cost (270,408) (20,671) (41,124) (1,099) Foreign exchange gain (loss) 289,539 680 2,336 (1,751) Derivative loss (excluding gain (loss) on investments) (1,472,334) - (858) - Total Other Reconciliations Consolidated Net sales Customers 3,418,279 51,643 - 3,469,922 Intersegment 7,905 5,814 (13,719) - Total 3,426,184 57,457 (13,719) 3,469,922 Segment income 1,376,923 44,130 40,090 1,461,143 Depreciation and amortization (410,388) (7,852) - (418,240) Gain (loss) on investments 2,710,579 (46,694) (12,859) 2,651,026 Finance cost (333,302) (6,060) 55,652 (283,710) Foreign exchange gain (loss) 290,804 (1,760) - 289,044 Derivative loss (excluding gain (loss) on investments) (1,473,192) (4,774) - (1,477,966) For the six-month period ended September 30, 2024 Note: * The details of the difference between “Gain (loss) on investments” in the SoftBank Vision Funds segment and “Gain (loss) on investments at SoftBank Vision Funds” in the condensed interim consolidated statement of profit or loss are described in “(1) Income and loss arising from the SoftBank Vision Funds business” under “Note 4. SoftBank Vision Funds business.” SoftBank Group Corp. Consolidated Financial Report For the Six-Month Period Ended September 30, 2024 58
  • 61. (Millions of yen) Reportable segments Investment Business of Holding Companies SoftBank Vision Funds SoftBank Arm Net sales Customers - - 1,503,176 117,295 Intersegment - - 798 - Total - - 1,503,974 117,295 Segment income (148,712) (258,864) 260,245 1,069 Depreciation and amortization (794) (558) (181,322) (23,417) Gain (loss) on investments 276,167 21,363 6,405 319 Finance cost (112,386) (28,904) (16,881) (365) Foreign exchange gain (loss) (184,024) (574) (997) 2,393 Derivative gain (loss) (excluding gain (loss) on investments) (148,389) - 398 80 Total Other Reconciliations Consolidated Net sales Customers 1,620,471 49,082 - 1,669,553 Intersegment 798 3,478 (4,276) - Total 1,621,269 52,560 (4,276) 1,669,553 Segment income (146,262) (4,625) (580,344) (731,231) Depreciation and amortization (206,091) (5,603) - (211,694) Gain (loss) on investments 304,254 17,233 (586,085) (264,598) Finance cost (158,536) (4,192) 7,145 (155,583) Foreign exchange gain (loss) (183,202) (242) - (183,444) Derivative gain (loss) (excluding gain (loss) on investments) (147,911) - - (147,911) For the three-month period ended September 30, 2023 SoftBank Group Corp. Consolidated Financial Report For the Six-Month Period Ended September 30, 2024 59
  • 62. (Millions of yen) Reportable segments Investment Business of Holding Companies SoftBank Vision Funds SoftBank Arm Net sales Customers - - 1,616,042 120,227 Intersegment - - 693 6,577 Total - - 1,616,735 126,804 Segment income 626,397 373,142 259,977 (6,336) Depreciation and amortization (765) (571) (175,705) (24,072) Gain (loss) on investments 1,548,826 608,477 (6,733) 203 Finance cost (134,333) (10,147) (20,488) (599) Foreign exchange gain (loss) 732,107 481 2,291 (1,905) Derivative loss (excluding gain (loss) on investments) (1,531,112) - (2,584) - Total Other Reconciliations Consolidated Net sales Customers 1,736,269 31,906 - 1,768,175 Intersegment 7,270 3,229 (10,499) - Total 1,743,539 35,135 (10,499) 1,768,175 Segment income 1,253,180 (657) (17,078) 1,235,445 Depreciation and amortization (201,113) (5,103) - (206,216) Gain (loss) on investments 2,150,773 (19,548) (39,911) 2,091,314 Finance cost (165,567) (5,577) 25,038 (146,106) Foreign exchange gain (loss) 732,974 (23) - 732,951 Derivative loss (excluding gain (loss) on investments) (1,533,696) (4,774) - (1,538,470) For the three-month period ended September 30, 2024 SoftBank Group Corp. Consolidated Financial Report For the Six-Month Period Ended September 30, 2024 60
  • 63. (Millions of yen) Six-month period ended September 30, 2023 Six-month period ended September 30, 2024 Gain on investments at SoftBank Vision Funds Gain on investments at SVF1, SVF2, and LatAm Funds Realized gain (loss) on investments*1,2,3 855,769 (1,298,092) Unrealized gain (loss) on valuation of investments Change in valuation for the fiscal year*4 (633,520) 583,014 Reclassified to realized gain (loss) recorded in the past fiscal years*3,5 (662) 1,089,291 Interest and dividend income from investments 20,812 6,937 Derivative gain on investments 4,427 13,418 Effect of foreign exchange translation*3,6 (78,360) 244,532 Subtotal 168,466 639,100 Gain (loss) on other investments 12,670 (28,712) Total gain on investments at SoftBank Vision Funds 181,136 610,388 Selling, general and administrative expenses (44,688) (36,065) Finance cost (interest expenses) (52,532) (20,671) Change in third-party interests in SVF (226,265) (421,217) Other gain (loss)*7 (55,474) 36,406 Segment income arising from the SoftBank Vision Funds business (income before income tax) (197,823) 168,841 4. SoftBank Vision Funds business (1) Income and loss arising from the SoftBank Vision Funds business a. Overview Segment income arising from the SoftBank Vision Funds business (income before income tax) represents the net profits of the SoftBank Vision Funds business, after deducting the net profits attributable to Third-Party Investors. The net profits attributable to Third-Party Investors are the amount allocated to Third-Party Investors based on proportion of their respective equity contributions, calculated by deducting management fees, performance-linked management fees, and performance fees payable to the fund managers, as well as operating expense and other expenses of SVF from the gains or losses on investments at SVF1, SVF2, and LatAm Funds. The amount of the net profits attributable to Third-Party Investors that is deducted from the segment income is presented as “Change in third-party interests in SVF.” b. Segment income arising from the SoftBank Vision Funds business The components of segment income arising from the SoftBank Vision Funds business are as follows: SoftBank Group Corp. Consolidated Financial Report For the Six-Month Period Ended September 30, 2024 61
  • 64. Notes: 1. The amount of realized gain and loss on investments is the exit price net of the investment cost. In addition to the realized gain and loss on sales by cash consideration, the realized gain and loss by disposals as a result of share exchange and restructuring of portfolio companies are included. 2. In August 2023, SVF1 sold Arm shares for $16.1 billion (the “Transaction Consideration”) to a wholly-owned subsidiary of the Company (the “Transaction”). In relation to the Transaction, the proceeds of the sale will be paid in four installments, with the first installment having been paid upon completion of the Transaction, with the remaining three installments to be paid over a two-year period through August 2025. At the date of sale, “Realized gain (loss) on investments” was recorded as the discounted present value of the Transaction Consideration ($15.1 billion) net of the investment cost ($8.2 billion). The difference between the Transaction Consideration and the discounted present value of the Transaction Consideration is recognized as income over the two years after the date of sale and recorded in “Realized gain (loss) on investments.” As a result of the Transaction, for the six-month period ended September 30, 2024, ¥51,527 million of the realized gain is included in “Gain on investments at SoftBank Vision Funds” in the above-mentioned segment income. However, these are eliminated in consolidation due to inter-company transactions relating to shares of a subsidiary. 3. On May 30, 2024, the Bankruptcy court entered an order approving the reorganization plan of WeWork. On June 11, 2024 (the Emergence Date), WeWork emerged from Chapter 11 of the United States Bankruptcy Code (“Chapter 11”). Under the reorganization plan of WeWork, the preexisting Chapter 11 equity in SVF 1 and SVF2 was cancelled pursuant to Restructuring Support Agreement. In addition, a portion of the pre-petition claims was cancelled and the remaining portion was converted into new WeWork equity. Accordingly, SVF1 and SVF2 derecognized WeWork shares, warrants and notes and SVF2 recognized the shares newly issued by WeWork. As a result, for the six-month period ended September 30, 2024, ¥1,050,033 million of the realized loss, ¥848,458 million of the unrealized gain on valuation (reclassified to realized gain (loss) recorded in the past fiscal years), and ¥201,994 million of gain arising from the foreign exchange translation effects were recorded. The effect on gain and loss on investments at SoftBank Vision Funds was a gain of ¥419 million. The Company transferred WeWork shares to SVF2 in August 2021. Investment gain and loss on the shares recorded until the transfer is described in “Notes 2” in “(1) Gain and loss on investments at Investment Business of Holding Companies” under “Note 10. Gain on investments.” 4. For the six-month period ended September 30, 2024, ¥42,360 million of the unrealized loss (net) on valuation arising from shares of the Company’s subsidiaries held by SVF1 and SVF2 (mainly PayPay Corporation) is included in “Gain on investments at SoftBank Vision Funds” (in Change in valuation for the fiscal year under Unrealized gain (loss) on valuation of investments) in the above-mentioned segment income. However, the unrealized loss on valuation arising from shares of the Company’s subsidiaries is eliminated in consolidation. The unrealized gain and loss on valuation, that are eliminated in consolidation, are not included in “Gain (loss) on investments at SoftBank Vision Funds” in the condensed interim consolidated statement of profit or loss. 5. It represents the unrealized gain and loss on valuation of investments recorded as “Gain on investments at SoftBank Vision Funds” in the past fiscal years, which are reclassified to “Realized gain (loss) on investments” due to the realization for the six-month period ended September 30, 2024. 6. Unrealized gain and loss on valuation of investments are translated using the average exchange rate for the quarter in which the gain and loss were recognized, while realized gain and loss on investments are translated using the average exchange rate for the quarter in which the shares were disposed. “Effect of foreign exchange translation” arises from the different foreign currency exchange rates used for unrealized gain and loss on valuation and realized gain and loss. 7. Following WeWork’s emergence from Chapter 11 on June 11, 2024, given the approved plan of reorganization, out of a portion of the Junior TLC facility, which has been recognized as loan receivables was repaid in cash given over collateral, and the drawn amounts up to date of emergence were converted into new WeWork equity as described above. The carrying amounts (recoverable amounts) of such loan receivables in the consolidated statement of financial position as of March 31, 2024, were zero. However, the collectability of the remaining loan receivables was reassessed and as a result, for the sixmonth period ended September 30, 2024, ¥22,216 million of gain was recorded. SoftBank Group Corp. Consolidated Financial Report For the Six-Month Period Ended September 30, 2024 62
  • 65. (2) Third-party interests in SVF a. Terms and conditions of contribution from/ distribution to SVF Investors Contributions by SVF Investors are classified as “Equity” and “Preferred Equity” depending on the terms and conditions of distribution. Preferred Equity is prioritized over Equity with regard to distribution and return of contribution. Performance-based distributions attributed to SVF Investors, consisting of the Company and Third-Party Investors, are calculated using the net proceeds from the investment performance, as applicable, of SVF1, SVF2, and LatAm Funds. The net proceeds from SVF1 and LatAm Funds are also allocated to the performance fees attributed to SBIA and SBGA, respectively, using the method specified in the limited partnership agreement. The amount of performance-based distribution attributed to SVF Investors is allocated to each of the SVF Investors based on the proportion of their respective Equity contribution. The amount of performance-based distributions is paid to each of the SVF Investors after each of SVF1, SVF2, and LatAm Funds, as applicable, receive cash through dividend, or disposition or monetization of investments. In SVF1, fixed distributions are defined as distributions of Preferred Equity holders which are calculated equal to a 7% rate per annum based on their contributions. The fixed distributions are made every last business day of the months of June and December. The details of the terms and conditions of the Equity contributed by Third-Party Investor in SVF2 and LatAm Funds are described in “(1) Co-investment program with restricted rights to receive distributions” under “Note 16. Related party transactions.” There are no Third-Party Investors who contributed to Preferred Equity in SVF2 and LatAm Funds. Hereafter, Third-Party Investors contributing Equity are defined as “Investors entitled to performance-based distribution” and Third-Party Investors contributing Preferred Equity are defined as “Investors entitled to fixed distribution.” SoftBank Group Corp. Consolidated Financial Report For the Six-Month Period Ended September 30, 2024 63
  • 66. (Millions of yen) (For reference purposes only) Links with the condensed interim consolidated financial statements Third-party interests in SVF1 (Total of current liabilities and non-current liabilities) Consolidated statement of profit or loss (Negative figures represent expenses) Consolidated statement of cash flows (Negative figures represent payments) (Breakdown) As of April 1, 2024 4,680,417 Changes in third-party interests 424,981 (424,981) - Attributable to investors entitled to fixed distribution 61,852 Attributable to investors entitled to performance-based distribution 363,129 Distribution/repayment to Third-Party Investors (844,944) - (844,944) Exchange differences on translating third-party interests* (249,508) - - As of September 30, 2024 4,010,946 b. Changes in interests attributable to Third-Party Investors (a) Third-party interests in SVF1 Changes in interests attributable to Third-Party Investors in SVF1 (included in “Third-party interests in SVF” in the condensed interim consolidated statement of financial position) are as follows: Note: * Exchange differences were included in “Exchange differences on translating foreign operations” in the condensed interim consolidated statement of comprehensive income. SoftBank Group Corp. Consolidated Financial Report For the Six-Month Period Ended September 30, 2024 64
  • 67. (Millions of yen) Receivables from Third-Party Investor in SVF2 As of April 1, 2024 448,931 Increase in receivables from accrued premiums charged to ThirdParty Investor 6,345 Exchange differences on receivables (26,177) As of September 30, 2024 429,099 (Millions of yen) (For reference purposes only) Links with the condensed interim consolidated financial statements Third-party interests in LatAm Funds (Total of current liabilities and non-current liabilities) Consolidated statement of profit or loss (Negative figures represent expenses) Consolidated statement of cash flows (Negative figures represent payments) As of April 1, 2024 14,086 Changes in third-party interests (3,764) 3,764 - Exchange differences on translating third-party interests* (418) - - As of September 30, 2024 9,904 (b) Third-party interests in SVF2 and receivables There is no balance of interests attributable to Third-Party Investor in SVF2 (included in “Third-party interests in SVF” in the condensed interim consolidated statement of financial position) as of March 31, 2024 and September 30, 2024. There are no changes in interests attributable to Third-Party Investor in SVF2 for the six-month period ended September 30, 2024. Third-Party Investor in SVF2 is the investor entitled to performance-based distribution. The Company has receivables from Third-Party Investor in SVF2. The changes in the receivables from ThirdParty Investor in SVF2 (included in “Other financial assets (non-current)” in the condensed interim consolidated statement of financial position) are as follows: The details of the receivables from Third-Party Investor in SVF2 are described in “a. Transactions between SVF2 and related parties” in “(1) Co-investment program with restricted rights to receive distributions” under “Note 16. Related party transactions.” (c) Third-party interests in LatAm Funds and receivables Changes in interests attributable to Third-Party Investor in LatAm Funds (included in “Third-party interests in SVF” in the condensed interim consolidated statement of financial position) are as follows: Third-Party Investor in LatAm Funds is the investor entitled to performance-based distribution. Note: * Exchange differences were included in “Exchange differences on translating foreign operations” in the condensed interim consolidated statement of comprehensive income. SoftBank Group Corp. Consolidated Financial Report For the Six-Month Period Ended September 30, 2024 65
  • 68. (Millions of yen) Receivables from Third-Party Investor in LatAm Funds As of April 1, 2024 105,278 Increase in receivables from accrued premiums charged to ThirdParty Investor 1,492 Exchange differences on receivables (6,139) As of September 30, 2024 100,631 The Company has receivables from Third-Party Investor in LatAm Funds. The changes in the receivables from Third-Party Investor in LatAm Funds (included in “Other financial assets (non-current)” in the condensed interim consolidated statement of financial position) are as follows: The details of the receivables from Third-Party Investor in LatAm Funds are described in “b. Transactions between LatAm Funds and related parties” in “(1) Co-investment program with restricted rights to receive distributions” under “Note 16. Related party transactions.” c. Uncalled committed capital from Third-Party Investors Uncalled committed capital from SVF1’s Third-Party Investors as of September 30, 2024 was $8.2 billion. (3) Management fees and performance fees Terms and conditions of management fees, performance-linked management fees, and performance fees, included in segment income from the SoftBank Vision Funds business, are as follows. a. Management fees and performance fees in SVF1 Management fees to SBIA from SVF1 are, in accordance with the limited partnership agreement, calculated by multiplying 1% per annum by Equity contributions used to fund investments and paid to SBIA by SVF1 quarterly. A clawback provision is attached to the management fees received, which is triggered under certain conditions based on future investment performance. Same as the performance-based distributions, the amount of the performance fees to SBIA from SVF1 is calculated using the allocation method as specified in the limited partnership agreement. SBIA is entitled to receive the performance fees when SVF1 receives cash through disposition, dividend, and monetization of an investment. The performance fees received are subject to clawback provisions which are triggered under certain conditions based on future investment performance. From the inception of SVF1, the cumulative amount of performance fees paid to SBIA was $454 million. For the three-month period ended June 30, 2023, the performance fee (net of tax) was distributed to the limited partners in accordance with the clawback provisions. b. Management fees and performance-linked management fees in SVF2 Management fees to SBGA from SVF2 are, in accordance with the constitutional agreements, calculated by multiplying 0.7% per annum by the acquisition cost of investments and paid to SBGA by SVF2 quarterly. The amount of the performance-linked management fees to SBGA from SVF2 is determined, based on the SoftBank Group Corp. Consolidated Financial Report For the Six-Month Period Ended September 30, 2024 66
  • 69. investment performance for certain periods specified in the constitutional agreement, according to the agreed principle. SBGA is entitled to receive the performance-linked management fees after certain periods for the investment performance measurement specified in the constitutional agreement, provided that there are available cash proceeds through disposition, dividend, and monetization of an investment in SVF2. From the inception of SVF2 to September 30, 2024, no performance-linked management fees were paid to SBGA. c. Management fees, performance-linked management fees, and performance fees in LatAm Funds Management fees to SBGA from LatAm Funds are, in accordance with the constitutional agreements, calculated based on the acquisition cost of investments and paid to SBGA by LatAm Funds quarterly. The amount of the performance-linked management fees to SBGA from LatAm Funds is determined, based on the investment performance for certain periods specified in the constitutional agreement, according to the agreed principle. SBGA is entitled to receive the performance-linked management fees after certain periods for the investment performance measurement specified in the constitutional agreement, provided that there are available cash proceeds through disposition, dividend, and monetization of investments in LatAm Funds. Same as the performance-based distributions, the amount of the performance fees to SBGA from LatAm Funds is calculated using the allocation method as specified in the constitutional agreements. SBGA is entitled to receive the performance fees when LatAm Funds receives cash through disposition, dividend, and monetization of an investment. From the inception of LatAm Funds to September 30, 2024, neither performance-linked management fees nor performance fees were paid to SBGA. SoftBank Group Corp. Consolidated Financial Report For the Six-Month Period Ended September 30, 2024 67
  • 70. 5. Disposal group classified as held for sale For certain prepaid forward contracts using Alibaba shares, which mature after October 2024, the Company determined, by September 30, 2024, to settle the contracts by Alibaba shares. Subsequently, ¥1,249,587 million ($8.8 billion) of Alibaba shares were transferred from “Investment securities” to “Assets classified as held for sale” in the condensed interim consolidated statement of financial position as of September 30, 2024. Certain prepaid forward contracts, which were determined to settle by shares and described above, matured and were settled by Alibaba shares by November 12, 2024. As a result, ¥764,899 million ($5.4 billion) of Alibaba shares recognized as “Assets classified as held for sale” and ¥503,744 million ($3.5 billion) of “Current portion of financial liabilities relating to sale of shares by prepaid forward contracts” in the condensed interim consolidated statement of financial position as of September 30, 2024 were derecognized on the settlement date. (Millions of yen) As of March 31, 2024 As of September 30, 2024 Current Short-term borrowings 1,100,158 1,090,749 Commercial paper 363,501 350,000 Current portion of long-term borrowings 1,787,792 2,780,940 Current portion of corporate bonds 824,791 1,124,160 Current portion of financial liabilities relating to sale of shares by prepaid forward contracts*1,2 4,194,733 3,589,758 Current portion of installment payables 168 165 Total 8,271,143 8,935,772 Non-current Long-term borrowings 4,698,657 3,928,227 Corporate bonds 6,619,839 6,573,952 Financial liabilities relating to sale of shares by prepaid forward contracts*2 977,778 - Installment payables 107 45 Total 12,296,381 10,502,224 6. Interest-bearing debt (1) Components of interest-bearing debt The components of interest-bearing debt are as follows: Notes: 1. For the six-month period ended September 30, 2024, prepaid forward contracts using T-Mobile shares matured and were settled by cash and “Current portion of financial liabilities relating to sale of shares by prepaid forward contracts” decreased by ¥432,165 million. 2. These are primarily financial liabilities relating to sale of shares by prepaid forward contracts using Alibaba shares. The details are described in “(2) Transactions for sale of Alibaba shares by prepaid forward contracts.” SoftBank Group Corp. Consolidated Financial Report For the Six-Month Period Ended September 30, 2024 68
  • 71. (2) Transactions for sale of Alibaba shares by prepaid forward contracts Wholly-owned subsidiaries of the Company entered into prepaid forward contracts with financial institutions to procure funds using Alibaba shares, which are held by the subsidiaries. In the prepaid forward contracts, the number of Alibaba shares settled by the prepaid forward contracts is fixed regardless of changes in market share price in the future in a forward contract or determined by reference to market price of the shares at the valuation dates prior to the settlement date in a collar contract that a cap and a floor are set for the price of shares settled. A part of wholly-owned subsidiaries of the Company entering into prepaid forward contracts with financial institutions to procure funds using Alibaba shares (“Entities for fund procurement using Alibaba shares”), in addition to the prepaid forward contracts, enters into the call spread (combination of long position of call option and short position of call option with different strike prices) contracts in preparation for Alibaba shares price rise. The aforementioned prepaid forward contracts are classified as hybrid financial instruments with embedded derivatives. The Company accounts for the contracts by bifurcating the main contracts and embedded derivatives, and the main contracts are recognized as financial liabilities relating to sale of shares by prepaid forward contracts then measured at amortized cost, while the embedded derivatives are measured at fair value. Also, the call spread contracts are measured at fair value as well. In addition, for the derivative financial assets and the derivative financial liabilities recognized from the prepaid forward contracts and the call spread contracts, a tax effect is recognized. The ending balance of the derivative financial assets and the derivative financial liabilities recognized from the prepaid forward contracts and the call spread contracts are described in “Note 7. Financial instruments.” Entities for fund procurement using Alibaba shares have the option to settle all of the prepaid forward contracts by delivering cash, Alibaba shares, or a combination of cash and Alibaba shares. If Entities for fund procurement using Alibaba shares elect cash settlement, Entities for fund procurement using Alibaba shares will pay the cash equivalent to the fair value of the number of shares subject to the settlement, as determined by reference to the market price of the shares. Alibaba shares held by Entities for fund procurement using Alibaba shares are pledged as collateral in accordance with all of the prepaid forward contracts, and the Company granted the right of use to the financial institutions with respect to such shares. However, the collateral can be released by cash settlement at the discretion of Entities for fund procurement using Alibaba shares. For the six-month period ended September 30, 2024, certain prepaid forward contracts matured, and Entities for fund procurement using Alibaba shares settled them by Alibaba shares. As a result, ¥964,550 million of current portion of financial liabilities relating to sale of shares by prepaid forward contracts, ¥201,745 million of derivative financial assets (net), and ¥762,805 million of Alibaba shares were derecognized as of the settlement date. In addition, all of the call spread contracts relating to sale of shares by prepaid forward contracts were terminated as of September 30, 2024. As of September 30, 2024, the Company pledged ¥4,266,782 million of Alibaba shares as collateral for ¥3,566,213 million of current portion of financial liabilities relating to sale of shares by prepaid forward contracts. Alibaba shares pledged as collateral were recorded for ¥1,249,587 million as “Assets classified as held for sale” and for ¥3,017,195 million as “Investment securities” in the condensed interim consolidated statement of financial position. SoftBank Group Corp. Consolidated Financial Report For the Six-Month Period Ended September 30, 2024 69
  • 72. (Millions of yen) Six-month period ended September 30, 2023 Six-month period ended September 30, 2024 Net increase (decrease) in short-term borrowings 170,584 (130,870) Net increase in commercial paper 127,000 77,000 Total 297,584 (53,870) (Millions of yen) Six-month period ended September 30, 2023 Six-month period ended September 30, 2024 Proceeds from borrowings 2,496,346 1,596,426 Proceeds from issuance of corporate bonds 342,000 1,081,222 Proceeds from procurement by prepaid forward contracts using shares 605,627 - Total 3,443,973 2,677,648 (Millions of yen) Six-month period ended September 30, 2023 Six-month period ended September 30, 2024 Repayment of borrowings (3,421,212) (1,359,738) Redemption of corporate bonds (270,708) (726,277) Payments for settlement of financial liabilities relating to sale of shares by prepaid forward contracts* (2,545) (484,666) Total (3,694,465) (2,570,681) (3) Components of proceeds in and repayment of short-term interest-bearing debt, net The components of “Proceeds in (repayment of) short-term interest-bearing debt, net” in the condensed interim consolidated statement of cash flows are as follows: (4) Components of proceeds from interest-bearing debt The components of “Proceeds from interest-bearing debt” in the condensed interim consolidated statement of cash flows are as follows: (5) Components of repayment of interest-bearing debt The components of “Repayment of interest-bearing debt” in the condensed interim consolidated statement of cash flows are as follows: Note: * The amount was primarily settled by cash due to the maturity of prepaid forward contracts using T-Mobile shares. The details are described in “Notes 1” under “(1) Components of interest-bearing debt.” SoftBank Group Corp. Consolidated Financial Report For the Six-Month Period Ended September 30, 2024 70
  • 73. (Millions of yen) As of March 31, 2024 As of September 30, 2024 Carrying amount (fair value) Carrying amount (fair value) Assets Liabilities Assets Liabilities Prepaid forward contracts using Alibaba shares (Option contracts)*1 394,972 - 182,885 - Call spread contracts relating to prepaid forward contracts using Alibaba shares*1 1 - - - Prepaid forward contracts using Alibaba shares (Forward contracts)*1 514,848 54,688 - 896,109 Short call option for T-Mobile shares to Deutsche Telekom*2 - 70,699 - - 7. Financial instruments The details of derivative contracts are mainly as follows: Notes: 1. The details of prepaid forward contracts using Alibaba shares and call spread contracts relating to prepaid forward contracts using Alibaba shares are described in “(2) Transactions for sale of Alibaba shares by prepaid forward contracts” under “Note 6. Interest-bearing debt.” 2. On June 7, 2024, Deutsche Telekom partially exercised options to purchase T-Mobile shares granted by the Company and the Company sold 6,728,701 shares of T-Mobile. All remaining short call options expired on June 22, 2024. SoftBank Group Corp. Consolidated Financial Report For the Six-Month Period Ended September 30, 2024 71
  • 74. (Yen) As of March 31, 2024 As of September 30, 2024 USD 151.41 142.73 (Yen) Three-month period ended June 30, 2023 Three-month period ended September 30, 2023 USD 138.11 145.44 (Yen) Three-month period ended June 30, 2024 Three-month period ended September 30, 2024 USD 156.53 150.26 8. Foreign currency exchange rates Exchange rates of the major currencies used in translating financial statements of foreign operations are as follows: (1) Rate at the end of the period (2) Average rate for the quarter For the six-month period ended September 30, 2023 For the six-month period ended September 30, 2024 SoftBank Group Corp. Consolidated Financial Report For the Six-Month Period Ended September 30, 2024 72
  • 75. (Thousands of shares) Six-month period ended September 30, 2023 Six-month period ended September 30, 2024 Balance at the beginning of the period 6,948 4,070 Increase during the period* 0 19,118 Decrease during the period (2,668) (256) Balance at the end of the period 4,280 22,932 (Millions of yen) As of March 31, 2024 As of September 30, 2024 Equity financial assets at FVTOCI 46,425 50,314 Debt financial assets at FVTOCI 924 110 Cash flow hedges (48,030) (27,615) Exchange differences on translating foreign operations* 5,794,501 4,485,810 Total 5,793,820 4,508,619 9. Equity (1) Other equity instruments On July 19, 2017, SoftBank Group Corp. issued $2.75 billion of USD-denominated Undated Subordinated Non-Call 6 years Resettable Notes and $1.75 billion of USD-denominated Undated Subordinated Non-Call 10 years Resettable Notes (collectively, the “Hybrid Notes”). In addition, by July 19, 2023, the first optional redemption date, SoftBank Group Corp. fully redeemed the USD-denominated Undated Subordinated NonCall 6 years Resettable Notes. The Hybrid Notes are classified as equity instruments in accordance with IFRS because SoftBank Group Corp. has the option to defer interest payments, the notes have no maturity date, and SoftBank Group Corp. has an unconditional right to avoid delivering cash or another financial asset except for distribution of residual assets on liquidation. (2) Treasury stock Changes in treasury stock are as follows: Note: * For the six-month period ended September 30, 2024, due to purchases of treasury stock under the resolutions passed at the Board of Directors meeting held on August 7, 2024, the number of treasury stock increased by 19,118 thousand shares (the amount purchased is ¥153,785 million). (3) Accumulated other comprehensive income The components of accumulated other comprehensive income are as follows: Note: * The decrease was primarily due to a stronger yen against the U.S. dollar compared with the exchange rate as of March 31, 2024. SoftBank Group Corp. Consolidated Financial Report For the Six-Month Period Ended September 30, 2024 73
  • 76. (Millions of yen) Six-month period ended September 30, 2023 Six-month period ended September 30, 2024 Realized gain (loss) on investments at asset management subsidiaries (88,342) 355 Unrealized gain on valuation of investments at asset management subsidiaries 30,003 7,965 Realized gain (loss) on investments*1,2,3 75,585 (678,502) Unrealized gain (loss) on valuation of investments*1,2,3 (364,545) 2,559,815 Derivative loss on investments*3 (66,495) (8,453) Effect of foreign exchange translation*2,3,4 - 191,082 Other 264 44,497 Total (413,530) 2,116,759 10. Gain on investments (1) Gain and loss on investments at Investment Business of Holding Companies The components of gain and loss on investments at Investment Business of Holding Companies are as follows: Notes: 1. For the six-month period ended September 30, 2024, ¥109,504 million of realized loss on investments and ¥207,113 million of unrealized gain on valuation of investments (reclassified to realized gain and loss recorded in the past fiscal years) were recognized due to the physical settlement of prepaid forward contracts using Alibaba shares. In addition, ¥1,182,447 million of unrealized gain on valuation of investments was recognized due to the stock price changes for Alibaba shares held as of September 30, 2024. 2. For the six-month period ended September 30, 2024, ¥649,975 million of realized loss on WeWork shares, ¥447,483 million of unrealized gain on valuation of investments (reclassified to realized gain and loss recorded in the past fiscal years), and ¥202,492 million of gain arising from the foreign exchange translation effects were recognized due to the completion of the procedures under Chapter 11 for WeWork. The gain and loss were recognized as a result of unrealized loss on valuation of investments recorded in the period prior to the transfer of WeWork shares by the Company to SVF2 in August 2021, which were reclassified to realized loss on investments for the six-month period ended September 30, 2024, and therefore, the effect on the total amount of “Gain and loss on investments at Investment Business of Holding Companies” for the six-month period ended September 30, 2024, is zero. The details are described in “b. Segment income arising from the SoftBank Vision Funds business” in “(1) Income and loss arising from the SoftBank Vision Funds business” under “Note 4. SoftBank Vision Funds business.” 3. On June 7, 2024, Deutsche Telekom partially exercised options to purchase T-Mobile shares granted by the Company and the Company sold 6,728,701 shares of T-Mobile. As a result, for the six-month period ended September 30, 2024, ¥78,277 million of realized gain on investments, ¥50,043 million of unrealized loss on valuation of investments (reclassified to realized gain and loss recorded in the past fiscal years), ¥17,753 million of derivative loss on investments, and ¥11,066 million of loss arising from the foreign exchange translation effects were recognized. In addition, ¥560,265 million of unrealized gain on valuation of investments was recognized due to the stock price changes for T-Mobile shares held as of September 30, 2024. 4. Unrealized gain and loss on valuation of investments are translated using the average exchange rate for the quarter in which the gain and loss were recognized, while realized gain and loss on investments are translated using the average exchange rate for the quarter in which the shares were disposed. “Effect of foreign exchange translation” arises from the different foreign currency exchange rates used for unrealized gain and loss on valuation and realized gain and loss. SoftBank Group Corp. Consolidated Financial Report For the Six-Month Period Ended September 30, 2024 74
  • 77. (2) Gain and loss on investments at SoftBank Vision Funds The details of gain and loss on investments at SoftBank Vision Funds are described in “(1) Income and loss arising from the SoftBank Vision Funds business” under “Note 4. SoftBank Vision Funds business.” (Millions of yen) Six-month period ended September 30, 2023 Six-month period ended September 30, 2024 Interest expenses (295,184) (283,710) 11. Finance cost The components of finance cost are as follows: 12. Derivative gain (loss) (excluding gain (loss) on investments) For the six-month period ended September 30, 2024, derivative loss of ¥1,405,393 million was recorded for the prepaid forward contracts using Alibaba shares and the call spread contracts relating to prepaid forward contracts using Alibaba shares. The details of the contracts are described in “(2) Transactions for sale of Alibaba shares by prepaid forward contracts” under “Note 6. Interest-bearing debt.” SoftBank Group Corp. Consolidated Financial Report For the Six-Month Period Ended September 30, 2024 75
  • 78. (Millions of yen) Six-month period ended September 30, 2023 Six-month period ended September 30, 2024 Interest income 112,808 70,679 Loss on equity method investments (34,620) (1,824) Gain relating to loss of control over subsidiaries*1 117,471 136,211 Gain arising from the remeasurement relating to business combination*2 - 55,553 Gain (loss) from financial instruments at FVTPL*3 (2,329) 19,956 Provision for allowance for financial guarantee contract losses (42,072) - Loss on derecognition of unsecured notes issued by WeWork (21,579) - Other 16,023 5,317 Total 145,702 285,892 13. Other gain The components of other gain and loss are as follows: Notes: 1. For the six-month period ended September 30, 2024, as a result of the sale of all interests in Fortress held by a subsidiary of the Company, to a subsidiary of Mubadala Investment Company PJSC, ¥93,139 million of gain arising from the loss of control over Fortress is included. 2. On July 2, 2024, interests in SBE Global, which was previously an equity method associate of the Company, were additionally acquired and SBE Global became a wholly-owned subsidiary of the Company. Subsequently, the existing investment interests were measured at fair value and ¥55,553 million of gain arising from the remeasurement relating to business combination was recorded. 3. Following WeWork’s emergence from Chapter 11 on June 11, 2024, given the approved plan of reorganization, out of a portion of the Junior TLC facility, which has been recognized as loan receivables was repaid in cash given over collateral, and the drawn amounts up to date of emergence were converted into new WeWork equity as described above. The carrying amounts (recoverable amounts) of such loan receivables in the consolidated statement of financial position as of March 31, 2024, were zero. However, the collectability of the remaining loan receivables was reassessed and as a result, for the sixmonth period ended September 30, 2024, ¥22,216 million of gain was recorded. SoftBank Group Corp. Consolidated Financial Report For the Six-Month Period Ended September 30, 2024 76
  • 79. Six-month period ended September 30, 2023 Six-month period ended September 30, 2024 Net income attributable to ordinary shareholders of the parent (Millions of yen) Net income attributable to owners of the parent (1,408,727) 1,005,319 Net income not-attributable to ordinary shareholders of the parent*1 (13,890) (9,267) Net income used in the calculation of basic earnings per share (1,422,617) 996,052 Weighted-average number of ordinary shares (Thousands of shares) 1,464,122 1,463,280 Basic earnings per share (Yen) (971.65) 680.70 Six-month period ended September 30, 2023 Six-month period ended September 30, 2024 Diluted net income attributable to ordinary shareholders of the parent (Millions of yen) Net income used in the calculation of basic earnings per share (1,422,617) 996,052 Effect of dilutive securities issued by subsidiaries and associates (3,484) (1,140) Total (1,426,101) 994,912 Weighted-average number of ordinary shares used in the calculation of diluted earnings per share (Thousands of shares) Weighted-average number of ordinary shares 1,464,122 1,463,280 Adjustments: Stock acquisition rights*2 - 1,183 Total 1,464,122 1,464,463 Diluted earnings per share (Yen) (974.03) 679.37 14.Earnings per share Basic earnings per share and diluted earnings per share are as follows: For the six-month period ended September 30 (1) Basic earnings per share (2) Diluted earnings per share Notes: 1. Net income not-attributable to ordinary shareholders of the parent represents net income attributable to owners of other equity instruments issued by SoftBank Group Corp. 2. For the six-month period ended September 30, 2023, stock acquisition rights are not included in the calculation for “Diluted earnings per share,” as it has an antidilutive effect for the calculation. SoftBank Group Corp. Consolidated Financial Report For the Six-Month Period Ended September 30, 2024 77
  • 80. Three-month period ended September 30, 2023 Three-month period ended September 30, 2024 Net income attributable to ordinary shareholders of the parent (Millions of yen) Net income attributable to owners of the parent (931,111) 1,179,600 Net income not-attributable to ordinary shareholders of the parent*1 (4,628) (4,189) Net income used in the calculation of basic earnings per share (935,739) 1,175,411 Weighted-average number of ordinary shares (Thousands of shares) 1,465,056 1,460,642 Basic earnings per share (Yen) (638.70) 804.72 Three-month period ended September 30, 2023 Three-month period ended September 30, 2024 Diluted net income attributable to ordinary shareholders of the parent (Millions of yen) Net income used in the calculation of basic earnings per share (935,739) 1,175,411 Effect of dilutive securities issued by subsidiaries and associates (1,758) (1,231) Total (937,497) 1,174,180 Weighted-average number of ordinary shares used in the calculation of diluted earnings per share (Thousands of shares) Weighted-average number of ordinary shares 1,465,056 1,460,642 Adjustments: Stock acquisition rights*2 - 1,154 Total 1,465,056 1,461,796 Diluted earnings per share (Yen) (639.90) 803.25 For the three-month period ended September 30 (1) Basic earnings per share (2) Diluted earnings per share Notes: 1. Net income not-attributable to ordinary shareholders of the parent represents net income attributable to owners of other equity instruments issued by SoftBank Group Corp. 2. For the three-month period ended September 30, 2023, stock acquisition rights are not included in the calculation for “Diluted earnings per share,” as it has an antidilutive effect for the calculation. SoftBank Group Corp. Consolidated Financial Report For the Six-Month Period Ended September 30, 2024 78
  • 81. 15. Supplemental information to the condensed interim consolidated statement of cash flows (1) Payments (net) for acquisition of control over subsidiaries For the six-month period ended September 30, 2024 The amount is mainly due to the acquisition of Graphcore Limited and SBE Global as subsidiaries. (2) Significant non-cash transactions For the six-month period ended September 30, 2024 As certain prepaid forward contracts matured, ¥964,550 million of current portion of financial liabilities relating to sale of shares by prepaid forward contracts and ¥201,745 million of derivative financial assets (net) were settled by Alibaba shares. The details of the transaction are described in “(2) Transactions for sale of Alibaba shares by prepaid forward contracts” under “Note 6. Interest-bearing debt.” 16. Related party transactions (1) Co-investment program with restricted rights to receive distributions MgmtCo, which is the investor in SVF2 LLC (a subsidiary of the Company under SVF2) and the investor in SLA LLC (a subsidiary of the Company under the LatAm Funds), is a company controlled by Masayoshi Son, Representative Director, Corporate Officer, Chairman & CEO of SoftBank Group Corp., and a related party of the Company. The co-investment program with restricted rights to receive distributions to SVF2 and LatAm Funds has been introduced from the three-month period ended September 30, 2021 for the purpose of enabling Masayoshi Son to make a co-investment in SVF2 and LatAm Funds with the Company, sharing risk of losses as well as benefit of profits in the success of SVF2 and LatAm Funds, and leading to enhanced focus on the management of investments held by them, which in turn is intended to contribute to increases in the Company’s earnings. In making a co-investment in SVF2 and LatAm Funds under the terms of the program, MgmtCo both receives the benefit of profits and assumes the risk of losses from SVF2 and LatAm Funds, and MgmtCo’s right to receive distributions from its investment is subject to certain restrictions. Contributions to SVF2 LLC and SLA LLC are classified as “Equity” and “Preferred Equity” depending on the terms and conditions of distribution. SVF2 LLC and SLA LLC each have issued Equity entitled to performance-based distributions that are allocated to the Company and MgmtCo based on the proportion of their respective contributions. The Company’s Equity interest in each of SVF2 LLC and SLA LLC is 82.75%, and MgmtCo’s Equity interest in each of SVF2 LLC and SLA LLC is 17.25%. The Company’s investment in SVF2 LLC is made through SoftBank Vision Fund II-2 L.P. and its subsidiaries, and its investment in SLA LLC is made through SBLA Latin America Fund LLC and its subsidiaries. SoftBank Group Corp. Consolidated Financial Report For the Six-Month Period Ended September 30, 2024 79
  • 82. Name of the company or individual Nature of relationship Nature of transaction For the six-month period ended September 30, 2024 As of September 30, 2024 Amount of transaction Balance at period end Masayoshi Son (MASA USA LLC (MgmtCo)) Chairman & CEO of SoftBank Group Corp. and related entities of which he holds more than onehalf of the voting rights Receipt of capital contribution in SVF2 LLC and related adjustments*1,2 - 429,099*3,4 ($3,006 million) The premium received on SVF2 LLC’s receivables 6,345*3 ($41 million) MgmtCo’s Equity interests in SVF2 LLC*5,6 - - Net balance at period end (Receivables in SVF2 LLC less MgmtCo’s Equity interests in SVF2 LLC)*7 429,099 ($3,006 million) Related party transactions of the Company are as follows: a. Transactions between SVF2 and related parties (Millions of yen) Notes: 1. Restrictions on rights of MgmtCo to receive distributions MgmtCo’s right to receive distributions from its investment is subject to certain restrictions. Distributions from SVF2 LLC to MgmtCo are fully restricted and are not paid until the sum of proceeds received by SVF2 LLC from realized investments plus the aggregate fair value of all of SVF2 LLC’s unrealized investments (net of borrowings) exceeds 130% of the aggregate acquisition cost of all of SVF2 LLC’s investments. After the ratio exceeds 130%, restrictions on distributions to MgmtCo are released proportionately in increments of 10%, and when the ratio reaches 200%, all restrictions are released and MgmtCo is entitled to receive the full amount of the distribution. In the event that, upon the liquidation of SVF2 LLC, the amount of the distributions received by MgmtCo exceeds the amount that would have been distributed to MgmtCo if the ratio in effect at the time of liquidation was applied throughout the life of SVF2 LLC, then any such excess amounts will be subject to clawback from MgmtCo. 2. Nature of the Equity contribution by MgmtCo The Equity interests contributed by the Company and MgmtCo are subordinated to the Preferred Equity contributed separately by the Company to SVF2 LLC. If there is a shortfall in the amount of return of Preferred Equity contributions and the amount of fixed distributions to be received by the Preferred Equity holders at the time of the final profit distribution by SVF2 LLC, then MgmtCo is obligated to pay the shortfall proportional to Equity interests’ ratio up to the total amount of return of Equity contributions and the distributions received by MgmtCo. 3. Balance at period end of receivables from MgmtCo for receipt of capital contribution and related adjustments Balance at period end is the balance of SVF2 LLC’s receivables which consists of the balance related to receipt of capital contribution, related adjustments, and premiums received from MgmtCo, less any decrease in receivables due to offsetting settlement with distributions to MgmtCo. The amount of the transaction for “Receipt of capital contribution in SVF2 LLC and related adjustments” at the inception of the program is MgmtCo’s Equity Acquisition Amount in SVF2 LLC, which consists of the amount calculated based on MgmtCo’s Equity interests of 17.25% in the SVF2’s initial acquisition costs of the relevant portfolio companies held by SVF2 LLC and related adjustments calculated based on 17.25% interest in the increase in the portfolio companies’ fair value from the initial acquisition costs at SVF2 to June 30, 2021, and the adjustment equivalent to SoftBank Group Corp. Consolidated Financial Report For the Six-Month Period Ended September 30, 2024 80
  • 83. interests for the period from the Company’s contribution to SVF2 until June 30, 2021. MgmtCo is entitled to make full or partial payment of its Equity Acquisition Amount at any point in time, at its discretion, from the date it became an investor in SVF2 LLC to the end of the company life of SVF2 LLC. MgmtCo is required to pay a premium of 3% per annum on the unpaid Equity Acquisition Amount until the unpaid amount is paid in full. “The premium received on SVF2 LLC’s receivables” refers to the amount of such premium accrued in the current period. MgmtCo is also entitled to make full or partial payment of the premium at any point in time, at its discretion, on the same terms and conditions as Equity Acquisition Amount. Any distributable amount from SVF2 LLC to MgmtCo is offset against the receivables at the time of the distribution notice and no distribution payments to MgmtCo are made until the SVF2 LLC’s receivables are paid in full. 4. Collateral and other credit protection for receivables In order to secure the receivables of SVF2 LLC related to Equity Acquisition Amount and the premium thereon, all of the Equity interests in SVF2 LLC held by MgmtCo are pledged as collateral. In the event that MgmtCo pays into the receivables or offsets such receivables with distributions due to it from SVF2 LLC, the collateral is released to the extent that the cumulative amounts of payments and offsets exceed the balance of the receivables after deduction of such cumulative amounts. Masayoshi Son also provides a personal guarantee to the receivables up to the balance of the receivables. In addition, as of September 30, 2024, 8,897,100 shares of SoftBank Group Corp. are deposited in SVF2 LLC by Masayoshi Son. The deposited shares of SoftBank Group Corp. will be released only when the entire amount of receivables is settled. SVF2 LLC may acquire the deposited SoftBank Group Corp. shares without consideration where there are any unpaid receivables in SVF2 LLC after the enforcement of the collateral and personal guarantees by SVF2 LLC. 5. MgmtCo’s Equity interest in SVF2 LLC The amount represents SVF2 LLC’s net assets attributable to MgmtCo (before deduction of receivables), which is included in “Third-party interests in SVF” in the condensed interim consolidated statement of financial position. 6. Management fee and performance-linked management fees to be charged to MgmtCo The terms of the management fee and performance-linked management fee to be charged to MgmtCo are the same as those to be charged to the Company as an Equity investor in SVF2 LLC. 7. Net balance at period end Net balance at period end is the balance of receivables held by SVF2 LLC less MgmtCo’s Equity interest in SVF2 LLC. SoftBank Group Corp. Consolidated Financial Report For the Six-Month Period Ended September 30, 2024 81
  • 84. Name of the company or individual Nature of relationship Nature of transaction For the six-month period ended September 30, 2024 As of September 30, 2024 Amount of transaction Balance at period end Masayoshi Son (MASA USA LLC (MgmtCo)) Chairman & CEO of SoftBank Group Corp. and related entities of which he holds more than onehalf of the voting rights Receipt of capital contribution in SLA LLC and related adjustments*1,2 - 100,631*3,4 ($705 million) The premium received on SLA LLC’s receivables 1,492*3 ($10 million) MgmtCo’s Equity interests in SLA LLC*5,6 - 9,904 ($69 million) Net balance at period end (Receivables in SLA LLC less MgmtCo’s Equity interests in SLA LLC)*7 90,727 ($636 million) b. Transactions between LatAm Funds and related parties (Millions of yen) Notes: 1. Restrictions on rights of MgmtCo to receive distributions MgmtCo’s right to receive distributions from its investment is subject to certain restrictions. Distributions from SLA LLC to MgmtCo are fully restricted and are not paid until the sum of proceeds received by SLA LLC from realized investments plus the aggregate fair value of all of SLA LLC’s unrealized investments (net of borrowings) exceeds 130% of the aggregate acquisition cost of all of SLA LLC’s investments. After the ratio exceeds 130%, restrictions on distributions to MgmtCo are released proportionately in increments of 10%, and when the ratio reaches 200%, all restrictions are released and MgmtCo is entitled to receive the full amount of the distribution. In the event that, upon the liquidation of SLA LLC, the amount of the distributions received by MgmtCo exceeds the amount that would have been distributed to MgmtCo if the ratio in effect at the time of liquidation was applied throughout the life of SLA LLC, then any such excess amounts will be subject to clawback from MgmtCo. 2. Nature of the Equity contribution by MgmtCo The Equity interests contributed by the Company and MgmtCo are subordinated to the Preferred Equity contributed separately by the Company to SLA LLC. If there is a shortfall in the amount of return of Preferred Equity contributions and the amount of fixed distributions to be received by the Preferred Equity holders at the time of the final profit distribution by SLA LLC, then MgmtCo is obligated to pay the shortfall proportional to Equity interests’ ratio up to the total amount of return of Equity contributions and the distributions received by MgmtCo. 3. Balance at period end of receivables from MgmtCo for receipt of capital contribution and related adjustments Balance at period end is the balance of SLA LLC’s receivables which consists of the balance related to receipt of capital contribution, related adjustments, and premiums received. The amount of the transaction for “Receipt of capital contribution in SLA LLC and related adjustments” at the inception of the program is MgmtCo’s Equity Acquisition Amount in SLA LLC, which consists of the amount calculated based on MgmtCo’s Equity interests of 17.25% in the LatAm Funds’ initial acquisition costs of the portfolio companies held by LatAm Funds and related adjustments calculated based on 17.25% interest in the increase in the portfolio companies’ fair value from the initial acquisition costs at LatAm Funds to June 30, 2021, and the adjustment equivalent to interests for the period from the Company’s contribution to LatAm Funds until June 30, 2021. SoftBank Group Corp. Consolidated Financial Report For the Six-Month Period Ended September 30, 2024 82
  • 85. MgmtCo is entitled to make full or partial payment of its Equity Acquisition Amount at any point in time, at its discretion, from the date it became an investor in SLA LLC to the end of the company life of SLA LLC. MgmtCo is required to pay a premium of 3% per annum on the unpaid Equity Acquisition Amount until the unpaid amount is paid in full. “The premium received on SLA LLC’s receivables” refers to the amount of such premium accrued in the current period. MgmtCo is also entitled to make full or partial payment of the premium at any point in time, at its discretion, on the same terms and conditions as Equity Acquisition Amount. Any distributable amounts from SLA LLC to MgmtCo are offset against the receivables at the time of the distribution notice and no distribution payments to MgmtCo are made until the SLA LLC’s receivables are paid in full. 4. Collateral and other credit protection for receivables In order to secure the receivables of SLA LLC related to Equity Acquisition Amount and the premium thereon, all of the Equity interests in SLA LLC held by MgmtCo are pledged as collateral. In the event that MgmtCo pays into the receivables or offsets such receivables with distributions due to it from SLA LLC, the collateral is released to the extent that the cumulative amounts of payments and offsets exceed the balance of the receivables after deduction of such cumulative amounts. Masayoshi Son also provides a personal guarantee to the receivables up to the balance of the receivables. In addition, as of September 30, 2024, 2,168,500 shares of SoftBank Group Corp. are deposited in SLA LLC by Masayoshi Son. The deposited shares of SoftBank Group Corp. will be released only when the entire amount of receivables is settled. SLA LLC may acquire the deposited SoftBank Group Corp. shares without consideration where there are any unpaid receivables in SLA LLC after the enforcement of the collateral and personal guarantees by SLA LLC. 5. MgmtCo’s Equity interest in SLA LLC The amount represents SLA LLC’s net assets attributable to MgmtCo (before deduction of receivables), which is included in “Third-party interests in SVF” in the condensed interim consolidated statement of financial position. 6. Management fee, performance-linked management fees, and performance fees to be charged to MgmtCo The terms of the management fee, performance-linked management fees, and performance fee to be charged to MgmtCo are the same as those to be charged to the Company as an Equity investor in SLA LLC. 7. Net balance at period end Net balance at period end is the balance of receivables held by SLA LLC less MgmtCo’s Equity interest in SLA LLC. SoftBank Group Corp. Consolidated Financial Report For the Six-Month Period Ended September 30, 2024 83
  • 86. Name of the company or individual Nature of relationship Nature of transaction For the six-month period ended September 30, 2024 As of September 30, 2024 Amount of transaction Balance at period end The EDGEof Korea Co., Ltd. (Taizo Son) Related entities of which Relative of Representative Director of SoftBank Group Corp. holds more than one-half of the voting rights Collection of loans receivable* 1,297 5,371 Interest receipt 153 28 (2) Other related party transactions Related party transactions of the Company were as follows: (Millions of yen) Note: * The repayment date for the loan is June 14, 2028. Prior to the maturity date, the borrower may prepay all or any portion of the outstanding principal amount of the loan, along with any accrued but unpaid interest on such principal amount at any time. SoftBank Group Corp. Consolidated Financial Report For the Six-Month Period Ended September 30, 2024 84


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