ANNUAL REPORT 2019 Softbank Group Corp

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ANNUAL REPORT 2019 Softbank Group Corp ANNUAL REPORT 2019 SoftBank Group Corp. ANNUAL REPORT 2019 Disclaimers to be correct, and actual results, performance or achievements could User Guide materially differ from expectations. Persons viewing this annual report • This annual report provides relevant information about the Group and This PDF has various features to make it easy to use and to search for should not place undue reliance on forward-looking statements. We does not constitute or form any solicitation of investment including any information. It also contains links to external websites to allow you to undertake no obligation to update any of the forward-looking statements offer to buy or subscribe for any securities in any jurisdiction. refer to external information easily. contained in this annual report or any other forward-looking statements • This annual report contains forward-looking statements, beliefs or opinions we may make. Past performance is not an indicator of future results and regarding the Group, such as statements about the Group’s future the results of the Group in this annual report may not be indicative of, and business, future position and results of operations, including estimates, Contents are not an estimate, forecast or projection of our future results. forecasts, targets and plans for the Group. Without limitation, forward- • We do not guarantee the accuracy of information in this report regarding Click to go to the first page of each category. looking statements often include the words such as “targets”, “plans”, companies (including, but not limited to, those in which SoftBank Vision SoftBank Group Corp. “believes”, “hopes”, “continues”, “expects”, “aims”, “intends”, “will”, Towards the AI Era Essential Information Growth Strategy Management Organization Financial Section Corporate Information Fund has invested) other than the Group which has been quoted from ANNUAL REPORT 2019 006 “may”, “should”, “would”, “could” “anticipates”, “estimates”, “proj- public and other sources. For disclaimers about information regarding ects” or words or terms of similar substance or the negative thereof. Any Table of Contents SoftBank Group Corp. Towards the AI Era Essential Information Growth Strategy Management Organization Financial Section Corporate Information SoftBank Vision Fund and its fund manager, SBIA, see “Disclaimers about Towards the AI Era P.001ANNUAL REPORT 2019 006 forward-looking statements in this annual report are based on the current CEO Message Essential Information P.006 information regarding SoftBank Vision Fund and its fund manager, SBIA” Table of Contents assumptions and beliefs of the Group in light of the information currently P.002 007 Corporate Philosophy Towards the AI Era P.001 008 Transformation of the SoftBank Group (https://cdn.group.softbank/en/corp/set/data/irinfo/financials/annual_re- 014 Consolidated Financial Highlights CEO Message Essential Information P.006 available to it as of the date hereof. Such forward-looking statements do 015 Summary of Segment Information P.002 007 Corporate Philosophy ports/pdf/svf_disclaimer.pdf) on our website. United by a Common Vision 008 Transformation of the SoftBank Group not represent any guarantee by any member of the Group or its manage- 014 ConsolidatedGrowth Financial Highlights Strategy P.016 015 Summary of Segment Information 017 Growth Strategy of the SoftBank Group to Bring HappinessUnited by a toCommon Everyone Vision Growth Strategy — P.016 Cluster of No.1 AI Strategy ment of future performance and involve known and unknown risks, 017 Growth Strategy018 ofInvestment the SoftBank Group Strategy of SoftBank Vision Fund to Bring Happiness to Everyone — Cluster of No.1 AI Strategy 020 SoftBank Vision Fund in Focus Adoption of IFRSs 018 Investment Strategy of SoftBank Vision Fund uncertainties and other factors, including but not limited to: the economic 020 SoftBank Vision025 FundPortfolio in Focus Companies of SoftBank Vision Fund 025 Portfolio Companies026 Arm of SoftBank Business Vision Strategy Fund circumstances surrounding the Group’s business, including general • The Company has prepared the consolidated financial statements in 026 Arm Business Strategy ManagementManagement Organization P.028 Organization P.028 029 Financial Strategy Chairman & CEO, SoftBank Group Corp. 029 Financial Strategy accordance with the International Financial Reporting Standards (IFRS) Chairman & CEO, SoftBank Group Corp. 031 Our Approach to Shareholder Value economic conditions in Japan, the United States and China; fluctuations in Masayoshi Son 031 Our Approach to Shareholder Value Masayoshi Son 032 Corporate Governance 035 Message from032 an ExternalCorporate Board DirectorGovernance foreign exchange rates; unforeseen situations involving key members of from the three-month period ended June 30, 2013 (the first quarter of the Investment Strategy of Arm Business Strategy Financial Strategy 036 Board Directors035 and Message from an External Board Director Audit & Supervisory Board Members SoftBank Vision Fund P.026 P.029 Investment Strategy of Arm Business Strategy Financial Strategy 040 Compliance036 Board Directors and P.018 Audit & Supervisory Board Members the Group management; the Group’s ability to respond to changes in fiscal year ended March 31, 2014). The date of transition to IFRS was April SoftBank Vision Fund P.026 P.029 042 Risk Management 043 Initiatives for040 Sustainability Compliance P.018 042 Risk Management technology and business models; competition and competitive factors; 1, 2012. The financial data for the year ended March 31, 2013 has also Financial Section P.045 046 Graphs: Consolidated043 Initiatives Financial Datafor Sustainability 049 Eleven-year Consolidated Financial Data 051 Management’sFinancial Discussion and Section Analysis of P.045 telecommunications network capacity; dependence on management been presented based on IFRS. Results of Operations and Financial Position 082 Consolidated046 Financial Graphs: Statements Consolidated Financial Data 090 Notes to Consolidated049 Eleven-year Financial Statements Consolidated Financial Data resources of other companies; risks relating to the renewable energy 204 Independent Auditor’s Report 051 Management’s Discussion and Analysis of Corporate InformationResults ofP.205 Operations and Financial Position Board Director, Executive Vice President, SoftBank Group Corp. Board Director, SoftBank Group Corp. Senior Vice President, CFO & CISO, SoftBank Group Corp. Definition of Terms 206 Major Subsidiaries082 andConsolidated Associates Financial Statements business; information leaks and security; service disruptions or decline in CEO, SB Investment Advisers (UK) Limited CEO, Arm Limited (Head of Finance Unit, Head of Administration Unit) Rajeev Misra Simon Segars Yoshimitsu Goto 209 Corporate Data090 Notes to Consolidated Financial Statements 210 Stock Information quality due to human error and other factors; natural disasters, accidents • “Fiscal 2018” refers to the fiscal year ended March 31, 2019, and other 204 Independent Auditor’s Report Corporate Information P.205 Board Director, Executive Vice President, SoftBank Group Corp. Board Director, SoftBank Group Corp. Senior Vice President, CFO & CISO, SoftBank Group Corp. and other unpredictable events; factors affecting our fund procurement 206 Major Subsidiaries and Associates fiscal years are referred to in a corresponding manner in this annual report. CEO, SB Investment Advisers (UK) Limited CEO, Arm Limited (Head of Finance Unit, Head of Administration Unit) Rajeev Misra Simon Segars Yoshimitsu Goto 209 Corporate Data and leasing; factors affecting our investment activities; factors affecting “FYE” denotes the fiscal year-end. For example, “FYE2018” denotes 210 Stock Information SoftBank Vision Fund and Delta Fund; requirements to provide support for March 31, 2019, the last day of fiscal 2018. subsidiaries and others; country risk; changes in law, regulation and legal Guide to Buttons systems; changes in accounting and taxation systems; national security Company Names policy in the U.S. and elsewhere; regulations relating to health risks • Unless specifically stated otherwise, “SBG” refers to SoftBank Group Corp. Go to table of contents associated with electromagnetic waves; issues surrounding intellectual and “the Company” refers to SBG and its subsidiaries. See page 91 for the property; litigation; administrative sanctions and other orders; issues abbreviations of subsidiary and associate company names. related to the proposed merger of Sprint and T-Mobile; and other factors, Go to related page any of which may cause the Group’s actual results, performance, achieve- Regarding Trademarks and Logos ments or financial position to be materially different from any future results, performance, achievements or financial position expressed or • Names of companies, products and services that appear in this annual report Link to external website implied by such forward-looking statements. For more information on are trademarks or registered trademarks of their respective companies. these and other factors which may affect the Group’s results, performance, • This annual report includes logos of third parties which do not belong to achievements, or financial position, see “Risk Factors” starting onpage 75. the Group, and the appearances of such logos in this annual report do not None of the Group nor our management gives any assurances that the indicate any current or future business or other relationships between the expectations expressed in these forward-looking
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