SoftBank : Earnings Investor Briefing for the Nine Months Ended December 31, 2020 (Q3 FY2020)

Earnings Results for the Nine Months Ended December 31, 2020

Investor Briefing

SoftBank Corp. February 4, 2021

Disclaimer

Important Notice Regarding Forward Looking Statements and Other Information

This document is based on the information available to SoftBank Corp. ("we" or "the Company") as of the time hereof and assumptions which it believes are reasonable. Statements contained herein that are not historical facts, including, without limitation, our plans, forecasts, strategies and beliefs about our business and financial prospects, are forward-looking statements. Forward-looking statements often include the words such as "targets", "plans", "believes", "hopes", "continues", "expects", "aims", "intends", "will", "may", "should", "would", "could" "anticipates", "estimates", "projects" or words or terms of similar substance or the negative thereof. These forward-looking statements do not represent any guarantee by us or our management of future performance or of any specific outcome are subject to various risks and uncertainties, including, without limitation, general economic conditions, conditions in the Japanese telecommunications market, our ability to adopt new technologies and business models, competition with other mobile telecommunications providers, our ability to improve and maintain our telecommunications network, our reliance on third parties in conducting our business, including SoftBank Group Corp. and its other subsidiaries and associates, our major vendors and suppliers, and other third parties, risks relating to M&A and other strategic transactions, risks relating to information security and handling of personally identifiable information, changes in the substance and interpretation of other laws and regulations and other important factors, which may cause actual results to differ materially from those expressed or implied in any forward-looking statement. The Company expressly disclaims any obligation or responsibility to update, revise or supplement any forward-looking statement in any document or generally to the extent allowed by law or stock exchange rule. Use of or reliance on the information in this material is at your own risk. Information regarding companies other than the Company and our subsidiaries and associates is quoted from public sources and others, and we have neither verified nor are we responsible for the accuracy of information. The information presented herein regarding certain joint ventures and collaborations of the Company, Vision Fund and SoftBank Group Corp. portfolio companies and investments has been selected on a subjective basis, is provided solely for illustrative purposes and does not purport to be a complete listing of all such collaborations or joint ventures. SoftBank Group Corp., the Company and the Vision Fund each have different strategies and objectives with respect to their investments and portfolio company operations. There is no guarantee that any joint venture will be consummated on the terms expressed herein or at all, or that the joint venture will be successful. All such plans are subject to uncertainties and risks, as well as investor consents and regulatory approvals, as applicable. References to such portfolio companies and investments should not be a recommendation of any particular investment.

Important Notice Regarding Trading of SoftBank Corp. Common Stock and Unsponsored American Depository Receipts

The Company encourages anyone interested in trading in its common stock to do so on the Tokyo Stock Exchange. The Company's disclosures are not intended to facilitate trades in, and should not be relied on for decisions to trade, unsponsored American Depository Receipts ("ADRs") representing the shares of its common stock. The Company has not and does not participate in, support, encourage, or otherwise consent to the creation of any unsponsored ADR programs or the issuance or trading of any ADRs issued thereunder. The Company does not represent to any ADR holder, bank or depositary institution, nor should any such person or entity form the belief, that (i) the Company has any reporting obligations under the U.S. Securities Exchange Act of 1934 (the "Exchange Act") or (ii) the Company's website will contain on an ongoing basis all information necessary for the Company to maintain an exemption from registering its common stock under the Exchange Act pursuant to Rule 12g3-2(b) thereunder. To the maximum extent permitted by applicable law, the Company disclaims any responsibility or liability to ADR holders, banks, depositary institutions, or any other entities or individuals in connection with any unsponsored ADRs representing its common stock.

For the definitions of numbers on this presentation, please refer to SoftBank Corp.'s data sheet.

2

Results for Q3 FY2020

• Even with COVID-19 impact, steady progress aiming for higher revenue and historical high for profits. Upwardly revised full-year forecasts for revenue, operating income and net income
• Revenue and profits increased in all segments: Consumer, Enterprise, Yahoo, and Distribution, and are expected to exceed initial plan

(Refer to page 7 and 19)

		Revenue					Operating Income			Net Income*2
	[JPY bn]		FY Forecast			[JPY bn]					[JPY bn]
		Upward
		revision		5,100.0
											900%						1400%
				4,900.0	4500%					FY Forecast
Full-year	4,861.2							Upward	970.0	800%						1200%
					4000%				revision
Progress	1,243.3			3,807.0	Progress	*3								FY Forecast
				1,093.0	3500%					700%						1000%
74%	3,618.0				78%			911.7		920.0	600%			Upward	490.0		800%
				3000%				841.6	Progress*3		revision
		+189.1			Progress
				795.1		78.4	500%						600%
Q3	1,244.9	+5.2%		1,378.6		87%	116 6			91%		473.1		485.0
	2500%		46.5	252.0
								243.2		Progress		433.8			*3
								400%	436.6			400%
					2000%			+5.8%				Progress
											92%	109.2		118.7	89%
	1,208.2			1,255.8									-2.9
Q2			1500%						300%			200%
								283.1		309.7			162.6	-0.7%	163.0
					1000%						200%			0%
Q1	1,164.9			1,172.6				268.9		279.9	100%						-200%
					500%								164.8
														152.1
0					0%	0.0					0%	0.0					-400%
	FY19 *1			FY20				FY19 *1		FY20			FY19 *1		FY20

*1: Actuals for FY19 have been adjusted retrospectively to have consolidated ZHD from April 1, 2018, same hereafter	3
*2: Net income: net income attributable to owners of SoftBank Corp., same hereafter *3: Progress toward initial forecasts announced in the beginning of the period

Revenue (1/2)

• Revenue increased YoY in all segments. Yahoo and Enterprise drove overall growth
• Consumer: Service revenue grew steadily by JPY +32.9 bn YoY, while Sales of goods and others declined by JPY -24.5 bn YoY

By Segment		Consumer Breakdown*1
[JPY bn]	[JPY bn]

		+189.1	3,807.0	YoY
	3,618.0	+5.2%
3,900	97.1	+22.7	+30.4%
Other	74.5
Yahoo	759.6		873.8	+114.2	+15.0%
Distribution	363.7		379.8	+16.0	+4.4%
Enterprise	470.9		507.8	+36.9	+7.8%
1,900
Consumer	2,035.9		2,044.3	+8.4	+0.4%

-100	-86.6	-95.7
Adjustments	FY19	FY20
	Q1-Q3	Q1-Q3

			+8.4
		2,035.9	+0.4%	2,044.3	YoY
Sales of goods
and others	429.0		404.5	-24.5	-5.7%
Electricity	45.6		76.2	+30.5	+66.9%
			+10.4	+3.6%
Broadband	286.6		297.0
Mobile	1,274.6		1,266.6	-8.0	-0.6%
communications
Service	1,606.9		1,639.8	+32.9	+2.0%
revenues
		FY19		FY20
		Q1-Q3		Q1-Q3

*1: "Electricity" disclosed separately from FY20Q1 (previously included in Revenue from sales of goods and others)

4

Revenue (2/2)

• Enterprise: Strong sales of Mobile in addition to Business solution and others due to increased demand for telework
• Yahoo: grew by a double-digit basis, JPY +114.2 bn (+15.0%) YoY, driven by significant YoY growth in Commerce

Enterprise Breakdown

Yahoo Breakdown*1

[JPY bn]

[JPY bn]

+114.2

YoY

873.8

+15.0%

-1.7

759.6

2.1

-45.0%

Other

+36.9

507.8

3.8

230.5

+4.1

+1.8%

470.9

+7.8%

YoY

226.4

Media

Business solution

118.4

138.7

+20.3

+17.2%

and others

Fixed-line

146.5

142.0

-4.5

-3.1%

641.2

+111.8

+21.1%

Commerce

529.4

Mobile

206.0

227.0

+21.0

+10.2%

-10

-20

FY19

FY20

FY19

FY20

Q1-Q3

Q1-Q3

Q1-Q3

Q1-Q3

*1: Revenue for Commerce and Media is restated for FY19 to reflect the transfer of

certain services and subsidiaries from Commerce to Media in April 2020

5

Operating Income/Adjusted EBITDA/Segment Income

• YoY increase in adjusted EBITDA of JPY +89.7bn (+6.9％) surpassed increase in operating income of JPY +46.5 bn (+5.8％)
• Operating income increased in all segments. Yahoo increased by 15.1% and Enterprise increased by 20.8%, both drove total growth

Operating Income/Adjusted EBITDA*1

	[JPY bn]	+89.7	1,380.6
	1,290.9	+6.9%
Adjusted EBITDA
		+46.5	841.6
Operating income	795.1	+5.8%
0
	FY19		FY20
	Q1-Q3		Q1-Q3

*1: Adjusted EBITDA＝operating income＋depreciation and amortization (including loss on disposal of non-current assets) ±other adjustments

Segment Income

	[JPY bn]
		+46.5	841.6	YoY
	795.1	+5.8%
	+0.6
	11.5	+5.5%
Other*2	10.9
	142.2	+18.7	+15.1%
Yahoo	123.5
	19.6	+3.6	+22.3%
Distribution	16.1
Enterprise	77.1		93.1	+16.0	+20.8%
Consumer	567.5		575.1	+7.5	+1.3%
0
	FY19		FY20
	Q1-Q3		Q1-Q3
*2: Other includes inter-segment adjustments (FY19Q1-Q3 0.6 bn, FY20Q1-Q3-1.1 bn), same hereafter	6

Operating Income (YoY Comparison)

• Consumer revenue was stable, excluding Half-price support (JPY 11.0 bn) and First-year and Half-year discounts (JPY -32.2 bn)
• Enterprise grew by JPY +16.0 bn YoY. Strong sales mainly in Business solution and others
• Yahoo grew by JPY +18.7 bn YoY. Commerce greatly drove growth

[JPY bn]

795.1

+7.5

+16.0

Consumer

Enterprise

+32.9

-24.5

+16.2

-17.1

+36.9

-20.8

Service

Revenues

Cost of

Other

Revenue

Expenses

revenues

from sales

goods sold

expenses

of goods

Mobile

-8.0

Cost of service

-28.5

Cost of goods/ -21.7

Half-Price

Sales commissions and

service sold

support (Q2)

+11.0

sales promotion expenses +34.3

Other

+0.9

First/Half year

-32.2

Telecom network charges

-3.6

discount*1

Other

-13.6

Others

+13.2

Depreciation and

Broadband

+10.4

amortization

-5.7

Electricity

+30.5

+46.5 bn

+3.6 +18.7 +0.6

Distribution YahooOther

+16.0 -12.4 +18.7 +0.6

Revenue Expenses

Cost of goods sold -11.9		Commerce*2	+33.6
Other	-0.5		of which, ZOZO +16.2
					Media*2	-3.6		841.6
					Other	-11.3
	Q1	(loss improvement of PayPay +6.8） +9.6
	Q2	(FY19 temporary factor*3 etc.)	-10.1

FY19 Q1-Q3	*1: Change in the method of recording discount on service fees (First year discount); deferred over a 24 month period before amendment of Telecommunications	FY20 Q1-Q3
	Business Act in October 2019, recorded over a 12 month period after amendment
	*2: Figures of Commerce and Media in Yahoo segment represent segment income/loss of ZHD		7
	*3: Due to recording of a gain of 11.9 bn on loss of control due to the reclassification of Cybereason Japan Corp. from SoftBank's subsidiary to an equity method affiliate in FY19Q2

Net Income (YoY Comparison)

• Net income slightly decreased YoY due to one-time gains/losses on sales and valuations of shares and impairment losses, full-year forecasts upwardly revised due to good progress

[JPY bn]

	+46.5	-33.7
			+3.9
		Financing income/costs,		Shares of
	Operating	gains/losses on sales and		profit/losses of
	impairments of		associates
	income
	equity method investments		accounted for
				using the equity
					method
	Impairments
	(WeWork Japan, Loon, etc.)
436.6	Interest				Improvement in
(increase in interest expense by ZHD, etc.)		PayPay, etc.

				Full-year forecast
-0.3			490.0
-19.2	(+5.0 compared to
Income taxes	BOP*1 forecast)
		Net income
		attributable to non-
		controlling interests

Recorded income taxes of 19.5
in FY19 related to business	433.8
integration of ZHD and LINE

		-2.9 bn
	FY19 Q1-Q3	FY20 Q1-Q3
*1: BOP: Beginning of the period for the fiscal year ending March 31, 2021	8

CAPEX/Adjusted Free Cash Flow

• Due to accelerated 5G investment, full-year forecast of CAPEX excluding ZHD increased by JPY 20.0 bn to JPY 420.0 bn
• Adjusted FCF (including IFRS 16 impact) excluding ZHD was JPY 569.4 bn. Steady progress towards full-year target of JPY 670.0 bn

CAPEX*1

Adjusted FCF*2,4

	[JPY bn]			[JPY bn]
350.0					Total	145.4	614.7	Full-year target
		317.0
			of which SoftBank	565.4	569.4	670.0 (progress 85%)
		281.9			(excluding ZHD)		45.3
300.0		56.3
				IFRS 16 impact	90.3	92.9	120.0
250.0	ZHD	65.0
200.0					SoftBank	475.2	476.5	550.0
150.0				Full-year forecast
SoftBank	216.9	260.6	420.0
	(Progress 62%)
(excluding IFRS 16)	(Progress		ZHD*3	-420.0
100.0
		59%)
50.0
0.0					FY19 Q1-Q3	FY20 Q1-Q3

FY19	FY20	*2: Adjusted FCF = FCF ± total CF relating to non-recurring transactions with SoftBank Group Corp. + (proceeds from the
FY19Q3累計	FY20Q3累計
Q1-Q3	Q1-Q3	securitization of installment sales receivables - repayments thereof)
		*3: Sum of ZHD's FCF and dividend payments from ZHD to SoftBank Corp. (FY19Q1-Q3: 5.4 bn, FY20Q1-Q3: 18.8 bn)
*1: CAPEX is on acceptance basis. Excludes CAPEX for rental	(including impact of IFRS 16 in ZHD)	9
mobile phones and impact from IFRS 16	*4: FY20Q1-Q3 excludes impact from LINE TOB (84.0 bn)

Interest-bearing Debt/Net Interest-bearing Debt

and Net Leverage Ratio

• Interest-bearingdebt increased slightly QoQ due to issuance of bonds, etc.
• Net leverage ratio slightly increased due to dividend payment, share buybacks, etc.

Interest-bearing Debt/	Net Leverage Ratio*4,5
Net Interest-bearing Debt*1

[JPY tn]

5.71 5.81 Interest-bearing debt

	5.35	0.57	0.57	IFRS 16	2.8
5.0	0.50						Including IFRS 16
		ZHD consolidation				2.4x	2.5x
		1.11	1.11				2.3x	2.4x
	0.97
	0.21	0.24	Other			2.5x
4.0					2.4x
0.12	Bonds and CP
	0.14	0.26		2.3x		2.3x		2.2x
	4.11	3.88	4.03	Net interest-bearing debt			2.2x
3.0						2.2x
1.17	1.14	1.15	Lease liabilities*2	1.8					Excluding IFRS 16
		1.9x	1.9x
2.0	0.88	1.06	1.00	Securitization of				1.7x
	1.7x				1.7x
				sales receivables
						1.5x				1.5x

1.0

1.71

1.48

1.48

Adjusted net leverage ratio

Bank loans*3

(excluding effect of securitization

0.0

0.8

of sales receivables and IFRS 16)

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q1

Q2

Q3

Q4

Q1

Q2

Q3

FY19

FY20

FY19

FY20

*1: Net interest-bearing debt = Interest-bearing debt - Cash and cash equivalents - Cash reserve of securitization

of sales receivables. Cash reserve for securitization of sales receivables is included in net interest-bearing debt

from FY20, figure of FY19 is restated accordingly

*2: Lease liabilities are liabilities and borrowings related to sale and leaseback and ECA finance transactions of

SoftBank Corp. and WCP (includes installment payables)

*4: Net leverage ratio = Net interest-bearing debt / Adjusted EBITDA (LTM)

*3: Senior loans the Company entered in August 2018 and October 2019

*5: LTM EBITDA of ZOZO retrospectively adjusted for FY19Q3, FY19Q4, FY20Q1 and FY20Q2 10

Cumulative Subscribers (Main Subscribers/Smartphones)

• Smartphone subscribers: 25.41 mil (+1.93 mil YoY). Y!mobile drove the growth, reached 20% level of total smartphone subscribers
• Cumulative main subscribers reached 37.50 mil (+1.57 mil YoY)

Cumulative Subscribers*1

Smartphone Subscribers

[Mil]

YoY

35.93

37.28

37.50

+1.57

4000

Main

34.22

Subscribers

12.44

12.28 12.09

-0.36

Other*2

12.76

2000

23.48

25.00 25.41

+1.93

Smartphones

21.46

QoQ

QoQ

+0.41

+0.45

0

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Q1

Q2

Q3

0

Q1

FY18

FY19

FY20

[Mil]

Growth in all 3 brands

									25.00	25.41
						23.48
		21.46
Q1	Q2	Q3	Q4	Q1	Q2	Q3	Q4	Q1	Q2	Q3
	FY18			FY19			FY20

*1:	Cumulative subscribers include Wireless Home Phone subscribers (FY19Q3: 0.53 mil, FY20Q3: 0.56 mil)	11
*2:	Feature phones, tablets, mobile data communications devices, Wireless Home Phones, etc.

Churn Rate (Main Subscribers/Smartphones)

• Q3 of previous FY had significant improvement due to lower customer liquidity caused by the increase in consumption tax and amendment of the Telecommunications Business Law, thus this Q3 churn increased YoY as a rebound

0.01

YoY

0.01

1.03%

0.01

0.01

0.86%

0.96%

+0.10% Main subscribers

0.79%

0.01

0.68% +0.15% Smartphones

0.53%

0.00

0.00

0.00

Q1	Q2	Q3	Q4	Q1	Q2	Q3	Q4	Q1	Q2	Q3
	FY18					FY19			FY20

12

ARPU (Main Subscribers)

• ARPU before discount decreased due to introduction of unbundling plan (including family discounts and Smartphone Debut Plan), effects from First-year and Half-year discount*1, and a rise in composition ratio of Y!mobile and LINE MOBILE subscribers (a)
• Discount ARPU also gradually decreased due to introduction of unbundling plan (b)

[JPY]
		5,420				5,100			4,750
								4,710
4,500
		4,380				4,440			4,300	4,300
2,500
500
		-1,040				-660			-450	-420
-1,500
Q1	Q2	Q3	Q4	Q1	Q2	Q3	Q4	Q1	Q2	Q3
	FY18			FY19			FY20

YoY

(a) -390 ARPU before discount

1. -140 Total ARPU (after discount)
2. 1. = (a) + (b)

(b) +240 Discount ARPU*2

*1: Change in the method of recording discount on service fees (First-year discount); deferred over a 24-month period before amendment of Telecommunications Business Act in
October 2019, recorded over a 12-month period after amendment	13
*2: Revenue deductions relating to reward points and programs supporting handset payments are not included in calculation of ARPU

Broadband Service

• SoftBank Hikari cumulative subscribers (in service) reached 6.84 mil, steadily increased by 0.59 mil YoY

Cumulative Subscribers

Home Bundle Discount Hikari Set

(Number of Connected Lines)

Cumulative Subscribers

YoY

[Mil]

YoY

[Mil]

8.20

7.78

8.09

8.12

+0.34

10.29 10.38

+0.42

7.52

9.97

1.33 1.28

-0.25

1.53

10

9.12

1.80

Other

×2.1*2

6.20

8

Mobile

4.20

6

4.90 4.97

+0.29

4.34

4.68

6.76

6.84

+0.59

*1

5.72

6.25

4

QoQ

QoQ

Broadband

2.20

(+0.08)

(+0.09)

2

0.20

0

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Q1

Q2

Q3

FY18

FY19

FY20

FY18

FY19

FY20

-1.80

*1: SoftBank Hikari includes SoftBank Air

*2: Number of mobile lines under bundled discount per SoftBank Hikari line

14

ZHD and SB Payment Service: Transaction Value

• E-commercetransaction value was +33% YoY due to cocooning consumption and strengthened sales promotion activities such as "Super PayPay Festival"
• SB Payment Service transaction value continued to be strong following Q2 due to recovery in travel and entertainment-related demand, exceeded JPY 1 tn for the first time

ZHD E-Commerce Transaction Value

[JPY bn]
1,000.0									918.2
800.0
						690.4
600.0		602.7
400.0
200.0
0.0
Q1	Q2	Q3	Q4	Q1	Q2	Q3	Q4	Q1	Q2	Q3
	FY18			FY19			FY20

SB Payment Service Transaction Value

YoY

[JPY bn]

YoY

1,073.7

+164.3

+227.8

1,000.0

909.5

+18%

+33%

800.0

757.5

600.0

400.0

200.0

0.0

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Q1

Q2

Q3

FY18

FY19

FY20

15

PayPay: Registered Users and No. of Payments

• Cumulative registered users exceeded 35 mil (as of Jan 4, 2021) and number of payments exceeded 500 mil
• Continued strong growth thanks to the success of various sales promotion measures, store expansion, and group synergies

Cumulative Registered Users*1

[Mil]								YoY
36							34.91	1.6x
34
32
30
28
26
24			22.43
22
20
18
16
14
12
10
8
6
4
2
0
Q4	Q1	Q2	Q3	Q4	Q1	Q2	Q3
FY18		FY19			FY20

Number of Payments*2

[Mil]								YoY
							507	1.8x
400
			286
200
0
Q4	Q1	Q2	Q3	Q4	Q1	Q2	Q3
FY18		FY19			FY20

*1: As of the end of each quarter

*2: Total of each quarter

16

Full-year Forecasts

Full-year Forecasts

• Full-yearforecasts revised upwards
• Annual dividend remains unchanged at JPY 86 per share

[JPY bn]			FY20 Forecasts
					Change	Change %
		BOP*1	Forecast	Current
		Forecast
	Revenue		4,900.0	5,100.0	+200.0	+4.1%
	Operating income		920.0	970.0	+50.0	+5.4%
	Net income		485.0	490.0	+5.0	+1.0%
*1: BOP: Beginning of the period for the fiscal year ending March 31, 2021			18

Full-year Forecasts (BOP Forecast Comparison)

• Operating income: Demand for cocooning consumption and digitalization exceeded the risk related to COVID-19, and profit increased compared to BOP*1 forecast
• Net income: Valuation and impairment losses partially offset increase in operating income

Operating Income (BOP Forecast Comparison)

[JPY bn]
		+25.0
	+12.0	Impact from
+13.0
Cocooning	risk assumption
	budget for
Telework and	demand, etc.
COVID-19
(Yahoo, other
digitalization
subsidiaries)
related	970.0
(Enterprise,
Distribution)
920.0
	+50.0
FY20		FY20
Operating income		Operating income
BOP forecast		Current forecast

*1: BOP: Beginning of the period for the fiscal year ending March 31, 2021

Net Income (BOP Forecast Comparison)

[JPY bn]
+50.0	-30.0
	-15.0
	Losses on
Operating	valuation	Income
of shares,
income	taxes
impairment losses
485.0	WeWork Japan,	490.0
Loon, etc.
	+5.0
FY20		FY20
Net income		Net income
BOP forecast		Current forecast

19

Further progress of "Beyond Carrier" is the key to growth

Present

As of initial public offering

Dec 2018

*The business integration between ZHD and LINE is expected to be completed in March 2021

20

Appendix

Consolidated Statements of Income

[億円]	[JPY bn]	FY19	FY20	Variance	Reasons for Variance
Q1-Q3	Q1-Q3
	Revenue	3,618.0	3,807.0	+189.1
	Cost of sales	-1,857.3	-1,927.9	-70.6
	Gross profit	1,760.7	1,879.1	+118.5
	Selling, general and administrative expenses	-977.5	-1,037.5	-60.0
	Other operating income	12.0	-	-12.0	Gain on loss of control due to the reclassification of Cybereason Japan
	Corp. from SoftBank's subsidiary to an equity method affiliate
	Operating Income	795.1	841.6	+46.5
	Share of gain / losses (-) of associates	-29.9	-26.1	+3.9
	accounted for using the equity method
	Financing income	5.0	4.3	-0.7
	Financing costs	-44.2	-61.3	-17.1	Losses on valuation of shares
	Gains on sales of equity method investments	3.7	1.6	-2.0
	Impairment loss of equity method investments	-	-13.9	-13.9	Impairment loss of WeWork Japan GK
	Profit before income taxes	729.6	746.2	+16.6
	Income taxes	-260.4	-260.7	-0.3
	Net income	469.2	485.5	+16.3
	Net income attributable to
	Owners of the Company	436.6	433.8	-2.8
	Non-controlling interests	32.5	51.7	+19.2

22

Consolidated Statements of Financial Position (Assets)

[億円円]]	[JPY bn]	As of	As of	Variance	Reasons for Variance
Mar 31, 2020	Dec 31, 2020
	Total assets	9,792.3	10,821.7	+1,029.5
	Current assets	3,364.3	4,105.8	+741.5
					Increase in funds procured from securitization of sales receivables and
	Cash and cash equivalents	1,143.8	1,691.4	+547.6	issuance of bonds, increase in assets under management in the
					banking business
	Trade and other receivables	1,800.3	2,078.8	+278.5
	Other financial assets	94.9	95.4	+0.5
	Inventories	96.9	149.1	+52.2
	Other current assets	228.4	91.0	-137.4	Income taxes of ZHD refunded
	Non-current assets	6,428.0	6,716.0	+288.0
	Property, plant and equipment	986.1	1,142.3	+156.3	Increase in telecommunication facilities
	Right-of-use assets	1,234.5	1,103.2	-131.2	Decrease from depreciation, lease-ups, etc.
	Goodwill	618.6	624.1	+5.5
	Intangible assets	1,709.5	1,685.8	-23.7
	Contract costs	212.6	235.3	+22.7
	Investments accounted for using the	80.1	76.2	-4.0
	equity method
	Investment securities	175.2	324.6	+149.4	+84.0 from acquisition of LINE shares by SoftBank
	Investment securities in banking business	343.0	386.2	+43.2
	Other financial assets	905.6	988.7	+83.1	Increase in deposit to Central clearing agency and balance of housing
	loans of The Japan Net Bank
	Deferred tax assets	55.9	43.9	-12.0
	Other non-current assets	106.9	105.6	-1.3

23

Consolidated Statements of Financial Position (Liabilities)

[億円]	[JPY bn]	As of	As of	Variance	Reasons for Variance
Mar 31, 2020	Dec 31, 2020
	Total liabilities	8,084.7	9,054.1	+969.4
	Current liabilities	4,496.6	4,905.4	+408.8
	Interest-bearing debt	1,811.3	2,030.0	+218.8	Increase from securitization of sales receivables
	Trade and other payables	1,253.8	1,354.9	+101.1	Decrease in trade payables and other payables
	Deposits for banking business	880.8	1,148.4	+267.5	Increase in saving accounts of The Japan Net Bank
	Contract liabilities	127.7	91.0	-36.7
	Other financial liabilities	3.8	3.3	-0.4
	Income taxes payable	153.4	112.2	-41.2
	Provisions	6.8	15.9	+9.1
	Other current liabilities	259.1	149.7	-109.4	Payment of withholding tax related to dividends paid from Yahoo Japan to ZHD
	Non-current liabilities	3,588.1	4,148.7	+560.6
	Interest-bearing debt	3,271.0	3,776.9	+505.9	Bond issuance by SoftBank of 220.0 and ZHD of 200.0
	Other financial liabilities	36.8	35.9	-0.9
	Defined benefit liabilities	16.3	16.6	+0.2
	Provisions	83.9	97.1	+13.2
	Deferred tax liabilities	168.2	210.7	+42.4
	Other non-current liabilities	11.9	11.6	-0.3

24

Consolidated Statements of Financial Position (Equity)

[億円]	[JPY bn]	As of	As of	Variance	Reasons for Variance
Mar 31, 2020	Dec 31, 2020
	Total equity	1,707.6	1,767.6	+60.1
	Equity attributable to owners of the Company	1,000.5	1,015.1	+14.6
	Common stock	204.3	204.3	-
	Capital surplus	-133.9	-132.7	+1.2
	Retained earnings	1,003.6	1,019.2	+15.7	-406.1 from dividend payments by SoftBank and +433.8 from net
	income in FY20 Q1-Q3
	Treasury stock	-68.7	-107.3	-38.6	Purchase of treasury stock by SoftBank
	Accumulated other comprehensive income	-4.7	31.6	+36.3	Changes in the fair value of equity investments at FVTOCI
	Non-controlling interests	707.0	752.5	+45.5
	Shareholders' equity ratio*1	10.2%	9.4%	-0.8%
	Ratio of total equity to total asset	17.4%	16.3%	-1.1%

*1: Shareholders' equity ratio = total equity attributable to owners of the Company ÷ total assets

25

Status of Assets and Equity

• Shareholders' equity ratio is 9.4%, -0.8% from end of March 2020 (Ratio of total equity to total asset 16.3%)
• Shareholders' equity ratio would be 12.4%, excluding the accounting treatment in connection with ZHD consolidation

[JPY bn]	As of	As of	Variance
Mar 31, 2020	Dec 31, 2020
Cash and cash equivalents	1,143.8	1,691.4	+547.6
Others	8,648.5	9,130.3	+481.9
Total assets	9,792.3	10,821.7	+1,029.5
Interest-bearing debt	5,082.3	5,806.9	+724.7
Others	3,002.4	3,247.2	+244.7
Total liabilities	8,084.7	9,054.1	+969.4
Total equity attributable to owners of	1,000.5	1,015.1	+14.6
the Company
Others	707.0	752.5	+45.5
Total equity	1,707.6	1,767.6	+60.1
Shareholders' equity ratio*1	10.2%	9.4%	-0.8%
Ratio of total equity to total asset	17.4%	16.3%	-1.1%

*1: Shareholders' equity ratio = total equity attributable to owners of the Company ÷ total assets

10.2%	+0.2%	-1.0%
		9.4%
	Decrease of	Increase of
	equity	asset
	Equity ratio -0.8％

As of	As of
Mar 31, 2020	Dec 30, 2020

(Reference)	[JPY bn]
Acquisition price of ZHD	677.5

Market price of ZHD (SB's share)	1,523.2
(As of Feb 3, 2021)
Consolidated book value*	402.5
(As of Dec 31, 2020)

*Including an impact of deduction in capital surplus of 321.4 bn, which is equivalent to goodwill, associated with ZHD consolidation

26

Consolidated Statements of Cash Flows

	FY19 Q1-Q3	FY20 Q1-Q3	Reasons for Variance
Cash flows from operating activities	793.1	1,039.0
Net income	469.2	485.5
Depreciation	497.1	518.8
Change in working capital	-222.3	-196.1
Interest paid	-46.4	-45.3
Income taxes paid/refunded	-247.0	-267.3
Other	342.5	543.4	Increase in deposits for banking business
Cash flows from investing activities	-729.5	-538.9
Purchases of/proceeds from sales of property, plant and	-323.5	-363.8
equipment and intangible assets
Proceeds from sales/redemption of investments	-9.7	-112.9	-84.0 from acquisition of LINE shares by SoftBank
Proceeds from obtaining control of subsidiaries	-377.8	-9.4	Purchase of ZOZO shares (FY19 Q3)
Other	-18.5	-52.8
Cash flows from financing activities	177.8	47.9
Proceeds from interest-bearing debt	2,062.9	1,638.1	Mainly from bank borrowings of 400.0 by ZHD for purchase of ZOZO shares
(FY19 Q3)
Repayment of interest-bearing debt	-1,124.0	-1,555.5	Mainly due to the repayment of bank borrowings of 400.0 by ZHD for purchase
of ZOZO shares (FY20)
Net increase/decrease of short-terminterest-bearing debt	295.8	451.4	Mainly increase from securitization of sales receivables
Cash dividends paid	-396.1	-391.7
Cash dividends paid to non-controlling interests	-24.8	-29.8
Purchase of treasury stock	-68.7	-66.9
Purchase of treasury stock by subsidiaries	-526.8	-	Purchase of treasury stock by ZHD (FY19)
Other	-40.5	2.3
Effect of exchange rate changes on cash and cash equivalents	-0.2	-0.3
Cash and cash equivalents at the beginning of the period	938.4	1,143.8
Cash and cash equivalents at the end of the period	1,179.6	1,691.4
Adjusted free cash flow	145.4	530.7

27

Subsidiaries (1/2)

• 255 group companies at the end of Dec 2020 (of which, 197 subsidiaries and 58 affiliate*1 companies)

Segment	Company Name	Ratio of Voting	Business Description	Blue: listed company
Rights Held
	Wireless City Planning Inc.	32.2%	Telecommunication services (Economic interests: 99.5%)
	LINE MOBILE Corporation	60.0%	Telecommunication services
Consumer	WILLCOM OKINAWA, Inc.	100.0%	Telecommunication services
	SB Power Corp.	100.0%	Sales and purchases of power and mediating power transaction
	SB Mobile Service Corp.	100.0%	Call center business
Enterprise	IDC Frontier Inc.	100.0%	Data center business
Telecom Engineering CO., LTD.	100.0%	Construction and operation related to telecommunications
Distribution	SB C&S Corp.	100.0%	Distribution and sales of IT-related products, provision of IT-related services
	Z Holdings Corporation	44.6%	Holdings company
	Yahoo Japan Corporation	100.0%	E-commerce, internet advertising business
	ZOZO, Inc.	50.1%	Operation of an e-commerce fashion website, distribution of private brand, operation of fashion media
	Ikyu Corporation	100.0%	Operation of internet sites that provide reservation services for high-end hotels and restaurants, etc.
	YJ Card Corporation	100.0%	Credit card, card loan, credit guarantee business
Yahoo	ASKUL Corporation	45.0%	Mail-order service of office-related products and other delivery services
	YJFX, Inc.	100.0%	Foreign exchange margin trading business
	The Japan Net Bank, Limited	46.6%	Banking business
	eBOOK Initiative Japan Co., Ltd.	43.4%	Content digitization and distribution service, planning, development, and production of digital content,
	and publishing and editorial service for magazines and books
	ValueCommerce Co., Ltd.	52.0%	Advertisement business, CRM business
*1: Affiliate companies include joint ventures			28

Subsidiaries (2/2), Affiliates

Segment	Company Name	Ratio of Voting	Business Description	Blue: listed company
Rights Held
	HAPSMobile Inc.	92.9%	R&D and manufacturing of network equipment for HAPS business
	SB Payment Service Corp.	100.0%	Payment processing
	SB Cloud Corp.	60.0%	Sales of public cloud services
	One Tap BUY Co., Ltd.*1	50.1%	Securities business specializing in smartphones
Other	SB Media Holdings Corp.	100.0%	Intermediate holdings company that owns ITmedia Inc.
	ITmedia Inc.	52.5%	Operation of comprehensive IT information site ITmedia
	SB Players Corp.	100.0%	Solution services for government
	SoftBank Technology Corp.	53.1%	Cloud service, security monitoring service, provision of IoT solution
	Vector Inc.	42.4%	Sales of download licenses for PC software and advertising sales
Category	Company Name	Ratio of Voting	Business Description	Blue: listed company
Rights Held

	PayPay Corporation	50.0%
	WeWork Japan G.K.	25.0%
	OYO Japan G.K.	24.9%
Affiliate	Tpoint Japan Co., Ltd.	34.0%
companies	J.Score CO., LTD.	50.0%
	Geniee, Inc.	31.3%
	Scigineer Inc.	32.1%

Development and offering of electronic payment services such as mobile payment Provision of co-working spaces

Provision of accommodation and hotel services

Point management business

FinTech services using AI-scoring

Marketing technology business

Internet marketing support services utilizing "deqwas", a personalized engine for e-commerce businesses and retailers

*1: On February 1, 2021, One Tap BUY Co., Ltd. was renamed to PayPay Securities Corporation

29

Mobile Communications Charge

• Clarification of pure mobile communications charge-related business

Revenue		Operating Income

By segment

Enterprise, Yahoo,

Distribution,

and Other

Sales of goods and others

	Broadband
Consumer
Electricity

Mobile communications

Clarification

Same as left

Sales of goods and others

Broadband

Electricity

Mobile value- added services

Mobile communications charge

Warranty

Security Payment fee Monthly content, etc

By segment

Clarification

Enterprise, Yahoo,

Distribution,Same as left and Other

Consumer services

Sales of goods and others

ConsumerBroadband Electricity

Mobile value-added services

Mobile communications charge

*Mobile communications charge for Enterprise is included in "Enterprise, Yahoo, Distribution, and Other"

30

Revenue/Operating Income Proportion (Non-audited)

• Proportion of mobile communications charge is continuously decreasing, and businesses other than mobile communication (non-telecom)are becoming growth drivers

			Revenue*1							Operating Income*2			Revenue*1			Operating
													Income*2
							ZHD							ZHD
						consolidated						consolidated
										4%	5%	7%	13%
Enterprise, Yahoo,
Distribution,	25%	25%	27%	29%										29%						29%	32%
and Other*3
						45%			40%	44%							44%	46%
													49%	43%
Consumer	30%	33%	35%
services			34%										33%						32%	29%
						26%												26%	25%
Mobile	45%								56%	52%	44%	44%
communications	42%	38%	37%								38%						39%	39%
charge			29%										30%	28%
0								0										FY19	FY20	0	FY19	FY20
								FY15	FY16	FY17	FY18		FY19
		FY15	FY16	FY17	FY18		FY19
*Pro forma (non-audited) information calculated using certain assumptions by the Company. FY18 is not retroactively adjusted for the impact of consolidating ZHD.	Q1-Q3	Q1-Q3		Q1-Q3	Q1-Q3
Ratio is rounded to the nearest whole number, and the total does not necessarily equal 100. *1: Sales to external customers is used as Revenue.						31
*2: Operating income of "Enterprise, Yahoo, Distribution, and Other" includes adjustments.	*3: Mobile communications charge for Enterprise is included in "Enterprise, Yahoo, Distribution, and Other."

Revenue/Operating Income (Non-audited)

• Revenue and operation income of mobile communications charge are both stable

	Revenue*1			Operating Income*2		Revenue*1		Operating
					Income*2
[JPY bn]	ZHD	[JPY bn]	ZHD	[JPY bn]	[JPY bn]
consolidated	consolidated

4,861.2

3,410.6 3,483.1 3,582.6 3,746.3

678.7

911.7	3,807.0
3,618.0
	841.6
	795.1

719.5

Enterprise, Yahoo,

Distribution,

and Other *3

Consumer services

Mobile

communications1,397.6 1,438.0 charge

FY15 FY16 FY17 FY18 FY19

644.0637.9

			319.3	348.5	1,094.6	1,091.3		311.1	330.2
					0		0
FY15	FY16	FY17	FY18	FY19	FY19	FY20		FY19	FY20
					Q1-Q3	Q1-Q3		Q1-Q3	Q1-Q3

*Pro forma (non-audited) information calculated using certain assumptions by the Company. FY18 is not retroactively adjusted for the impact of consolidating ZHD.
*1: Revenue includes intersegment revenue. *2: Operating income of "Enterprise, Yahoo, Distribution, and Other" includes adjustments.	32
*3: Mobile communications charge for Enterprise is included in "Enterprise, Yahoo, Distribution, and Other."

Business Integration Between ZHD and LINE

• After the business integration is completed, the JV (consolidated by SoftBank) between NAVER and SoftBank will own 65.3% of ZHD

Post-Integration Structure

50% 50%

Consolidated

JV (former LINE) Delist

65.3%

Maintain

listing

・SoftBank will have control of the majority of the board of directors (three out of five nominees)

・President, Representative Director: Ken Miyauchi, Chairperson of the Board, Representative Director: Hae Jin Lee

・LINE's business will be integrated with ZHD, the post-integration holding company

・JV will have control of the majority of the board of directors (six out of ten nominees)

・President, Representative Director and Co-CEO: Kentaro Kawabe Representative Director and Co-CEO: Takeshi Idezawa

*The structure is partially omitted or simplified.	33
*The structure of each of the proposed transactions and their ordering relative to one another may be changed within the scope of the purpose of this business integration and with the agreement of all parties concerned

Timeline of Business Integration between ZHD and LINE

Nov. 18,	Dec. 23,	Aug 4,	Sep 15,	Jan 21,	Mar 2021
2019	2019	2020	2020	2021	(Plan)

						Completion of joint		Commencement of
				Acquired clearance		tender offer for		tender offer for
Signing of		Signing of		from JFTC*1		LINE shares by		ZHD shares by
Memorandum of		Definitive				SoftBank & NAVER		LINE		Closing
Understanding		Agreement

*1: Japan Fair Trade Committee

34

SoftBank's Priority Issues (Materiality)

• Identified priority issues (materiality) to contribute to the achievement of Sustainable Development Goals (SDGs)

social Solving through issues business

social Solving through issues activities corporate

Building society and

industry through

digital transformation

Contributing to the global

environment with the power of technology

Connecting people to information to create new excitement

Building high-quality

social networks

Creating new business

through open

innovation

Developing a resilient

management

foundation

35