SECTION 1 SECTION 2 SECTION 3 SECTION 4 Appendix

SECTION1

Who We Are

4 The SoftBank Story

6 Group Structure

8 Value Creation Process

12 Priority Issues (Materiality)

20 Performance Highlights

SoftBank Corp. INTEGRATED REPORT 2020 3 Who We Are SECTION 1 SECTION 2 SECTION 3 SECTION 4 Appendix

The SoftBank Story SoftBank’s DNA Business growth driven by accurately anticipating the future brought about by the information revolution Ability to change continuously Ability to grow businesses Ability to overcome adversity SoftBank has led the information revolution in by spreading the and high-speed broadband ser- By anticipating the paradigm shift caused by We have achieved growth in previously unex- Even as a latecomer to the mobile market and the information revolution and continuing to plored areas such as the internet and have the payment service market, we vices across the country and by launching new innovations in the mobile communications industry one after change in an agile manner, we have generated expanded our business through corporate demonstrated our “venture spirit” and estab- new business models and new value-added revitalization. lished a leading position in the industry. another. Today, as we enter the 5G era, in which everything is connected to the network, and as digital transfor- products and services one after another. mation (DX) accelerates further, SoftBank aims to become more than a carrier as we strive to enrich people’s lives and solve a variety of social and industrial issues.

2001 2007 2008 2014 2016 2018 Launching the Yahoo! BB, Entering the Mobile Communica- Starting Sales of iPhone as Sole Rolling Out Marketing High-volume, Introducing High-speed Broadband Service tions Business and Launching Domestic iPhone Distributor Y!mobile Flat-rate Data Plans LINE MOBILE Services To make the internet in Japan cheaper and White Plan Direct negotiations with U.S. company Ahead of competitors, we began catering We rolled out the 20 GB Giga Monster SoftBank added LINE MOBILE as a third faster, we began offering broadband Apple Inc. conducted by then president of We entered the mobile communications to diversifying customer needs by offering data plan in 2016, followed by the 50 GB brand by entering into a capital and service featuring almost twice the speed for the Company succeeded, business through the acquisition of Voda- Y!mobile as an inexpensive new brand Ultra Giga Monster in 2017 and the Ultra business alliance with LINE MOBILE Corpo- almost half the price, thereby contributing and the Company was able to begin selling fone K.K. In 2007, the Company revolu- with undiminished communication quality. Giga Monster Plus, which allows subscrib- ration. This brand has gained strong greatly to the penetration of the internet in the iPhone 3G ahead of other carriers in tionized Japan’s telecommunications ers unlimited use of certain video services support, mainly among young customers Japan. Japan. This played a major role in triggering industry by marketing White Plan, a flat- and , in 2018. who use social media frequently. Japan’s iPhone boom. rate voice call plan.

(Trillions of yen) (Millions of subscribers)

5 50

Revenue Mobile subscribers (right axis) • Shows the number of main subscribers, which up to fiscal year ended March 31, 2012 covers all devices 4 (including communication modules, etc.), and from fiscal year ended March 31, 2013 onwards covers 40 , feature phones, tablets, mobile devices, Home Phone, and others. • Figures for fiscal year ended March 31, 2005 and fiscal year ended March 31, 2006 show Vodafone K.K. subscribers prior to acquisition

Revenue (left axis) • Fiscal year ended March 31, 1982 shows revenue of SOFTBANK Corp. (currently SoftBank Group Corp.) • Fiscal year ended March 31, 2006 and fiscal year ended March 31, 2011 show revenue of SOFTBANK Corp. 3 (currently SoftBank Group Corp.) minus revenue of Yahoo Japan Corporation (currently Z Holdings 30 Corporation) • Fiscal year ended March 31, 2016 and fiscal year ended March 31, 2020 show revenue of SoftBank Corp. Mobile subscribers

2 20

1 10

0 0 200 200 200 200 200 200 200 20 202 20 20 20 20 20 20 20

Establishment of Acquired Vodafone (Japanese subsidiary) Merged four telecom operators*1 Made Yahoo Japan a subsidiary An Expanding SOFTBANK Corp. Business Base Acquired JAPAN TELECOM Made WILLCOM a subsidiary, Entered capital and business acquired eAccess alliance with LINE MOBILE

*1 The four companies are SoftBank Mobile Corp., SoftBank BB Corp., SoftBank Telecom Corp., and Ymobile Corporation.

4 SoftBank Corp. INTEGRATED REPORT 2020 SoftBank Corp. INTEGRATED REPORT 2020 5 Who We Are SECTION 1 SECTION 2 SECTION 3 SECTION 4 Appendix

Group Structure SoftBank Group Corp., which is a strategic investment company, manages group companies as an investment portfolio. As a core operating company in the information revolution, SoftBank is pursuing an independent and SoftBank is an operating company, expanding beyond the agile growth strategy while taking advantage of being a member of the SoftBank Group. Against this backdrop, SoftBank made Z Holdings, one of Japan’s largest internet companies, a subsidiary in 2019, and with a Group- confines of a conventional telecom carrier to make the wide effort, successfully launched PayPay, a smartphone payment service. In addition, by leveraging cutting-edge technologies such as AI, IoT, and robotics, we are continuing to expand the scope of our business beyond the information revolution happen confines of a conventional telecommunications carrier.

1 Position of the Company in the SoftBank Group* Strategic investment company Mobile communications Revenue other than mobile charge 29%*4 71%*4 communications charge Masayoshi Son To cater to customers’ diverse needs, we offer mobile communications SoftBank’s businesses include broadband services for home use; the Chairman & CEO services for consumers under three brands, SoftBank, Y!mobile, and Enterprise business that provides solutions in addition to telecommuni- LINE MOBILE, each with different features. cations services; the Yahoo business, which provides e-commerce, financial and payment-related services, and advertising services; and 40.2%*2 the Distribution business.

Consumer Enterprise Enterprise SoftBank Vision Fund [Main business] [Main business] • Mobile communications Mobile • Mobile communications services for individual communica- services for enterprise consumers tions Distribu- customers tion • Broadband services charge • Fixed-line communications • Sale of mobile devices services Ken Miyauchi • Cloud, IoT, and other solution President & CEO services The Group Revenue for the (selected subsidiaries and affiliates) fiscal year ended March 31, 2020 Yahoo, etc. Distribution

3 50.0%* 44.6% 100% Warranty, [Main business] (Including indirect ownership by Z Holdings) security, broadband, sales of goods • Supplying ICT products to and others enterprise customers • Supplying ICT products etc. to Smartphone payment service Holding company Payment service provider *4 Pro forma (non audited) information calculated using certain assumptions individual consumers by the Company, based on sales to external customers. Mobile communications charge for Enterprise is included in “Enterprise.”

100% 100% 50.1%

Core internet business Financial holding company Online fashion retailer company Kentaro Kawabe Ichiro Nakayama President and Representative Director, President Corporate Officer, CEO President & Representative Director, CEO, Corporate Officer

[Main business] [Main business] • Commerce-related services • Financial and payment-re- • Smartphone payment service • Membership services lated services • FinTech services *1. This is a simplified representation of the Group’s structure, with percentages based on shareholder voting rights. Figures as of September 30, 2020. • Advertising-related services *2. The Company is directly owned by SoftBank Group Japan Corporation, a wholly owned subsidiary of SoftBank Group Corp. The stated 40.2% is the percentage of the total number of shares issued by the Company (excluding treasury stock). *3. PayPay Corporation is an equity method associate of the Company. The stock holding distribution is SoftBank Group Corp. : the Company : Z Holdings Corporation = 50:25:25. The stated 50.0% includes the 25% held by Z Holdings Corporation.

6 SoftBank Corp. INTEGRATED REPORT 2020 SoftBank Corp. INTEGRATED REPORT 2020 7 Who We Are SECTION 1 SECTION 2 SECTION 3 SECTION 4 Appendix

Value Creation Process

Input Business (source of compet- itive advantage) For more than 30 years, SoftBank has grown significantly through a series of challenges and innovations. Having model Our Beyond Carrier strategy aims to further grow our core telecommunications business while leveraging 5G, AI, integrated various companies during this period, we have a wealth of tangible and intangible management IoT, and big data to create new businesses. Concurrently with implementing our growth strategy, we are also 1 resources, including a diverse workforce. By investing these management resources in a variety of businesses, we 2 working to improve cost efficiency through structural reforms such as the digitization of business processes using are creating new value. AI and RPA.

Yahoo Japan New business fields

Making Yahoo Japan a subsidiary in June 2019, we aim to allocate and Through collaboration and establishment of joint ventures leverage the management resources of both companies—including with companies in the SoftBank Group, the leading compa- personnel, physical assets, financial assets, and information—more nies that SoftBank Group Corp. invests in, and a variety of strategically and drive both companies’ growth. In the meantime, we business partners inside and outside of Japan, we are aim to accelerate the growth of the new businesses created through introducing and rolling out the world’s leading business taking full advantage of synergies between the two companies. models and technologies in Japan.

Social and relationship capital Human capital Manufacturing capital By exploiting the Company’s • Smartphone subscribers: • Number of employees on consoli- • Capital expenditures telecommunications infrastruc- nge c (as of March 31, 2020) dated basis cha onti ture and technology, Yahoo 24.13 million approx. ¥400 billion/year*3 y to nuo ilit usl • SoftBank Hikari subscribers*1: 37,821 Ab y Japan’s big data, and the • Approx.230,000 base station cutting-edge technologies of 6.39 million (as of March 31, 2020) (as of March 31, 2020) sites SoftBank Group Corp.’s AI • Percentage of major corporations in • Growth investment of ¥50-70 portfolio companies, we are Japan which SoftBank has business billion/year building a future that no other relationships with: company can repeat. • Approx. stores*4 93%*2 6,000 New Yahoo *1 Including SoftBank Air *3 Acceptance basis. Excludes Z Holdings Group, rental mobile business *2 This is an approximate percentage of 900 companies which the phones for enterprise customers, and impact from adopting Japan Company has transactional relationships with, out of the 969 IFRS 16. fields listed companies that have annual revenue of at least ¥100 *4 This figure includes directly owned stores, dealers, mass billion. electronics retailers, and stores offering multiple carriers. Beyond Carrier

A

b Corporate philosophy i s l Structural Reform i e t y Information Revolution — s s

t e o Happiness for Everyone n i o s v u e b r c o w m o Operating r e g a income target d to v Telecom business e ty in the fiscal year ending Social and relationship capital Financial capital Natural capital rs ili ity b March 31, 2023 and intellectual capital • Rating and Investment Information, • Electricity usage A Inc. (R&I) • The cutting-edge technologies and 1,644,203 thousand kWh business models of the SoftBank Long-term debt rating ¥ trillion (actual usage for the fiscal year ended March 31, 1 *Announced at the earnings results briefing Group’s portfolio companies 2020) A+ for the first quarter of the fiscal year • Co-creation with corporate partners, ending March 31, 2021 • Japan Credit Rating Agency, Ltd. represented by 5G × IoT Studio (JCR) Telecom business Intellectual capital Long-term debt rating In the mobile communications services, we offer plans tailored to meet the needs of customers through our • Best Japan Brands 2020 AA− (as of September 17, 2019) multi-brand strategy, and in the broadband services, we offer SoftBank Hikari and SoftBank Air, our high- USD5,363 million*5 speed and large-capacity internet connection services for households. Going forward, we will continue to promote the spread of the 5G next-generation communication standard to provide even more appealing experiences for individual customers, as well as to contribute to the resolution of social issues through the use of 5G in smart cities, smart infrastructure, factories, and civil engineering work sites.

*5 Value of the brand as measured by Interbrand Japan, Inc.

8 SoftBank Corp. INTEGRATED REPORT 2020 SoftBank Corp. INTEGRATED REPORT 2020 9 Who We Are SECTION 1 SECTION 2 SECTION 3 SECTION 4 Appendix

Value Creation Process

Output Outcome In each of our three areas: telecommunications business, Yahoo Japan, and new business fields, we are developing Based on these outputs, SoftBank will create new value and solutions in its newly defined six priority issues (mate- services that utilize the latest technologies such as AI to meet the needs of our customers. riality), and contribute to the sustainable development of society, while aiming to enhance its own corporate value 3 4 over the medium to long term.

ZOZO Cybereason Japan Building society and industry Connecting people and informa- Creating new business through E-commerce Security through DX tion to create new excitement open innovation Yahoo Japan

IDC Frontier Cloud

Create new industries and provide Provide new experiences and enrich the Develop cutting-edge technologies and Yahoo Japan Media solutions for transforming various lifestyles of our customers by promot- innovative business models in Japan by Advertising WeWork Japan businesses in society by utilizing ing the adoption of smart devices. leveraging our relationships with global OYO Japan cutting-edge technologies such as 5G Concurrently, create value for both leading innovative companies. Concur- Sharing DiDi Mobility Japan and AI. consumers and enterprises by providing rently, promote the development of a partners with attractive platforms that highly-skilled workforce and the estab- connect people to information. lishment of an organization that sup- ports the expansion and penetration of SB Power SB C&S new businesses. Electricity Distribution

AI New business fields

Beyond Carrier Structural Reform

Contributing to the global envi- Building high-quality social Developing a resilient manage- ronment with the power of communication networks ment foundation technology

MONET PayPay Technologies One Tap BUY MaaS FinTech SB Payment Services J.Score Robotics Contribute to mitigating climate change, Commit to maintaining a constantly-con- Conduct corporate governance with promoting a circular economy, and the nected and stable network and to integrity to earn the trust of society adoption of renewable energy by utiliz- protecting our customers’ important through ongoing dialogue with stake- ing cutting-edge technologies to pass on data, based on the idea that communi- holders. In addition, foster innovation HAPSMobile a sustainable global environment to the cation networks serve as a lifeline. and improve the well-being of our Connectivity next generation. employees by developing a progressive workplace environment where diverse Telecom Broadband human resources can thrive utilizing business cutting-edge technologies. Wireless City Planning IoT

Fixed-line com- munications Mobile commu- services nications services

10 SoftBank Corp. INTEGRATED REPORT 2020 SoftBank Corp. INTEGRATED REPORT 2020 11 Who We Are SECTION 1 SECTION 2 SECTION 3 SECTION 4 Appendix

Priority Issues (Materiality)

SoftBank has identified six priority issues (materiality) that must be addressed to develop a sustainable society based on the concept “a world where all things, information and minds are connected.” In identifying material- A World where All Things, ity, we have selected items of greatest importance from the perspective of issues valued by stakeholders as well as priorities for our business based on the Sustainable Development Goals (SDGs), which are global in scope. Information and Minds are Connected

Materiality Identification Process

SoftBank’s Materiality Importance of External Factors Importance of Internal Factors

We consider the perspective of stakeholders based on the SDGs While consulting on the 17 goals and 169 targets encompassed — Solving social issues through business — and a variety of other angles, including the requirements for by SDGs, we discuss, examine, and evaluate which kinds of Socially Responsible Investment (SRI) ratings agencies, GRI stan- businesses and services are important to our Company and which dards, SASB standards, ISO 26000 and other international guide- methods and services we are capable of implementing based on lines as well as major external ratings agency requirements. In the circumstances and plans in each of our divisions and in busi- Building society and indus- Connecting people and Creating new business addition, we proactively engage in discussions with stakeholders nesses throughout the Group. At the same time, the SDGs Promo- try through DX information to create new through open innovation excitement outside the company, including exchanging opinions with external tion Committee* holds relevant discussions and identifies the directors and experts, and identify the degree of external impor- relative importance and impact of all associated internal factors.

tance associated with specific standards and requirements. *The SDGs Promotion Committee is an advisory body to the Board of Directors. Ken Miyauchi, Representative Director, President & CEO, is ultimately responsible for promoting the SDGs and overall sustainability activities of the Group. — Solving social issues through corporate activities —

Contributing to the global Building high-quality social Developing a resilient environment with the communication networks management foundation Dialogue with society and stakeholders power of technology

Building society and industry Connecting people and Creating new business through DX information to create new through open innovation excitement Listen to internal and external opinions Contributing to the global Building high-quality social Developing a resilient environment with the power communication networks management foundation •Exchange views with external direc- SDGs Initiatives as a Key Driver of Growth of technology tors and experts SoftBank considers its contribution to the achievement of SDGs targets to be an important management priority and is working to enhance corporate value and realize a sustainable society by contributing to the resolution of social issues pursued by the global commu- nity through our business and corporate activities. Confirm alignment with manage- ment and business strategy with SDGs Promotion Managers/SDGs Promotion Committee Relationship between Materiality and SDGs

Strategic Materiality Importance of External Factors

After discussion at management Building society and industry meetings, get approval from the through DX Important Materiality Board of Directors Connecting people and informa- tion to create new excitement SDGs × Impact on Stakeholders

Management Materiality Creating new business through open innovation Importance of Internal Factors Formulate and execute specific action themes for each materiality Contributing to the global environ- SDGs × Impact on Corporate and Business Activities ment with the power of technology

Building high-quality social To identify each materiality, we take into account the perspectives of a wide range of stakeholders, including the SDGs, international guidelines, and ESG assessments, as well as the perspective of communication networks business impact. We actively engage in discussions both internally and externally, including exchanging opinions with external directors and experts, and then finalize the identification process after discussions at management meetings and approval by the Board of Directors. Developing a resilient manage- ment foundation

12 SoftBank Corp. INTEGRATED REPORT 2020 SoftBank Corp. INTEGRATED REPORT 2020 13 Who We Are SECTION 1 SECTION 2 SECTION 3 SECTION 4 Appendix

Priority Issues (Materiality)

*Please also refer to our Sustainability Report for details on our initiatives related to priority issues (materiality).

Materiality Building society and industry through DX Materiality Connecting people and information to create new excitement

Social Issues • Labor shortage due to shrinking population Social Issues • Improve quality of life (QOL) through use of smart devices • Advancements in the foundation of industry • Information disparities, matching information demand and supply • Aging infrastructure in industrialized countries • Widening disparity between regions Key Risks and Risks Opportunities Opportunities • Risk of declines in profitability due to new entrants • Growth in smartphone subscribers Key Risks and Risks Opportunities and intensifying competition • Expansion of business to non- Opportunities • Risk of declines in profitability due to new entrants • Growing market for solutions using AI, robots, and IoT areas through provision of super apps and intensifying competition • Growing market for all kinds of solutions for smart cities • Increased profit opportunities via deeper data-driven marketing • Growing opportunities to provide solutions for regional revitalization SDGs Value Creation Main Business and Initiatives Representative KPIs SoftBank SDGs Value Creation Main Business and Initiatives Representative KPIs Initiatives SoftBank Realize attractive customer • Provide a wide range of customer Helping everybody enjoy the value Initiatives value through the spread of value, price plans and services of the latest devices and communi- Expand and enhance the effi- • Utilize 5G, big data, AI, and other Development of DX solutions for smart devices through multiple brands cation services ciency of the industrial base technologies social and industrial progress Provide unprecedented new experi- Multi-brand Strategy P37 • Smartphone cumulative subscrib- through cutting-edge • Enhance industry efficiency • Revenue of business solution and ences and excitement through a • Provide new experiences using 5G ers: 30 million technologies through AI, RPA*, IoT, and other others: CAGR* 10% wide range of technologically inno- such as VR and sports viewing (fiscal year ending March 31, Contribute to the development and technologies *CAGR (Compound Annual Growth Rate): Annual average growth rate vative services. Expansion of 5G P38 2024) *Robotic Process Automation efficiency of the business by utiliz- • Hold smartphone classes in our DX of Enterprise P41 • Survey for NPS* improvement: ing cutting-edge technologies such shops around Japan as 5G and AI. Monitor results *Net Promoter Score

Create new industries through • Create new businesses in various Projects undertaken through co-cre- Provide an environment where • Enhance accessibility to news and Progress on infrastructure for acqui- DX industries using DX solutions ation with customers everybody can access various information provided on sition and distribution of easily through co-creation with our Contribute to economic growth by • 17 projects in progress information the internet accessible information creating new businesses and indus- customers Contribute to the realization of a • Promote the expansion of internet • Yahoo! News DAU*: 45 million tries through collaboration with DX of Industry P41 society in which everyone can communications throughout the companies in various industries. • Expand the HAPS Alliance to obtain the latest information fairly world broaden internet communications without any inconvenience. HAPS Mobile Base Station in the Sky P54 across the world: Promoting Revitalize local communities • Solve social issues by providing DX Expanding partnership agreements initiatives (regional revitalization) solutions to local communities and and personnel exchanges with local *Daily Active Users Work to revitalize communities governments governments • Engage in co-creation to realize • 70 local governments facing social issues and contribute Leverage ICT to create new • Implement initiatives aimed at Expanding the number of ICT ser- smart cities (fiscal year ending March 31, to the creation of vital communities lifestyles and enhance the expanding and enhancing online vice users in lifestyle fields that residents want to keep living 2024) • Implement initiatives using tech- foundations for daily life shopping from smartphones, • PayPay cumulative registered in. nologies to promote collaboration Contribute to the enhancement of providing new payment methods, users: 40 million with local governments and stimu- and improving logistics efficiency lifestyles by expanding online shop- • E-commerce transaction value late local communities Commerce Strategy P43 ping and improving the conve- (Merchandise): 4 trillion yen nience of services closely related to • Contribute to education, medical daily life such as education, medical care and financial fields using ICT care, and finance through ICT. Smartphone payment service PayPay P47

14 SoftBank Corp. INTEGRATED REPORT 2020 SoftBank Corp. INTEGRATED REPORT 2020 15 Who We Are SECTION 1 SECTION 2 SECTION 3 SECTION 4 Appendix

Priority Issues (Materiality)

Materiality Creating new business through open innovation Materiality Contributing to the global environment with the power of technology • Promote innovation in Japan Social Issues • Rising cost of maintaining cash-oriented society • More frequent natural disasters due to global warming and climate change Social Issues • Lack of access to transportation in society with low birthrates and aging population • Depletion of resources • Access to telecommunications in developing countries and regions • Environmental pollution • Shortage of advanced human resources

Key Risks and Risks Opportunities Key Risks and Risks Opportunities Opportunities • Increased electricity costs • Expansion of the market for energy-efficient solutions Opportunities • Delays in developing business due to a lack of knowl- • Through collaboration with partners, increase oppor- • Risk of infrastructure and communication disruptions using IoT etc. edge and know-how related to new business tunities to provide greater value and solutions at a due to climate change-related disasters • Expansion of the sharing economy • Delays in developing business due to shortages of faster pace • Expansion of the use of renewable energy advanced human resources SDGs Value Creation Main Business and Initiatives Representative KPIs SDGs Value Creation Main Business and Initiatives Representative KPIs SoftBank SoftBank Initiatives Contribute to the mitigation • Improve power use efficiency Promoting energy conservation Initiatives Develop new business models • Realize a safe and comfortable HAPS service provision: of climate change through • Transition to energy-efficient through the use of renewable with cutting-edge mobility society Launch scheduled for fiscal year technology and business equipment energy and ICT technologies MONET for the Era of Self-Driving Vehicles P54 ending March 31, 2024 Use renewable energy to reduce • Leverage IoT for more efficient use • Ratio of renewable energy (for Together with our partners, create • Build a high-altitude communica- CO2 emissions and promote energy of electricity in consideration of base stations): new businesses for the future by tions network in the stratosphere conservation through ICT as mea- the environment 30% or greater (fiscal year ending utilizing the most advanced P54 sures to combat climate change. March 31, 2021) • Provide opportunities for mobility • Shift electricity consumed by technology. 50% or greater (fiscal year ending through the practical utilization of mobile phone base stations to March 31, 2022) self-driving vehicles electricity using renewable energy* 70% or greater (fiscal year ending P54 *We will primarily achieve this goal by using renew- able energy sources that have been certified as March 31, 2023) non-dependent on fossil fuels • Work on new businesses that help Incubate and spiral-up cut- • Provide innovative community-style Promotion of business operations in Response to TCFD Recommendations P82 ting-edge businesses overseas workspaces Japan promote CO2 reduction: Promot- ing initiatives Aim to develop cutting-edge busi- Community Centric Workspace WeWork P51 ness in Japan through joint ventures • Leverage AI and data analytics and partnerships with companies technologies to provide taxi-hailing Promote a recycling-based • Mobile phone recycling, the intro- Promote resource conservation and that develop cutting-edge business platforms society (circular economy) duction of carry bags made from recycling through the use of overseas. AI-enabled Taxi-hailing Platform DiDi P51 • Promote a cashless economy Limit the amount of resources used materials other than paper or technology through the spread of barcode and and promote recycling and reuse. plastic, and the reduction of paper • Number of mobile phone recycled QR code payments usage through the use of smart or reused: 10 million devices Smartphone payment service PayPay P47 (fiscal year ending March 31, • Utilize water resources appropri- 2021 to fiscal year ending March Build systems to recruit and • Job posting system that aims to SoftBank InnoVenture ately and reduce waste 31, 2026) develop human resources to shift human resources to new commercialization • Percentage of decommissioned drive growth and business businesses and growth businesses base stations going to landfill: creation Human Resource Strategy that Adapts to Changes in 1% or less (annually) the Business Environment Hire personnel who have advanced P75 professional skills and build an • Allocate personnel to new busi- Realize a prosperous society • Spreading renewable energy Expansion of renewable energy organization that become key nesses through improvements in through the spread of renew- (including power provided under a utilization services drivers of new business creation in operational efficiency able energy feed-in tariff [FIT] policy mecha- • Options for electric power from response to next-generation needs. SoftBank Cost Containment Strategy P56 nism) through the supply of elec- • Human resources recruitment and Work to spread and expand the use renewable sources: Supply of tricity from renewable sources development systems* necessary to of renewable energy projects and “Shizen Denki” electric power P82 create and promote new businesses services to create an environmen- service *Free-agent system and job posting system, SoftBank tally friendly society. University

Recruit a Diverse Workforce, Talent Development to Support Those who Take on Challenges Note: More information on our environmental initiatives can be found under “ESG Activities” at the following URL: P78-79 https://www.softbank.jp/en/corp/sustainability/

16 SoftBank Corp. INTEGRATED REPORT 2020 SoftBank Corp. INTEGRATED REPORT 2020 17 Who We Are SECTION 1 SECTION 2 SECTION 3 SECTION 4 Appendix

Priority Issues (Materiality)

Materiality Materiality Building high-quality social communication networks Developing a resilient management foundation

Social Issues • Workstyle reforms, promotion of diversity and inclusion • Infrastructure disruption due to more frequent natural disasters Social Issues • Corporate governance enhancements • Sophisticated cyber attacks • Consideration for social and environmental aspects throughout supply chains

Key Risks and Risks Opportunities Key Risks and Risks Opportunities Opportunities Opportunities • Improper use of personal information, loss of reputa- • Increased telecommunications revenue through 5G • Loss of trust due to violation of laws or regulations • Emergence of innovation through workstyle reforms tion due to personal information leaks area nationwide expansion • Loss of trust as a corporation due to absence of and diversity promotion • Disaster recovery costs and increased investment costs corporate governance • Cost reductions from increased efficiency associated for 5G area expansion with creation of progressive workplace environment • Subscriber defection due to communication failures • Transition to energy-efficient equipment

SDGs Value Creation Main Business and Initiatives Representative KPIs SoftBank SDGs Value Creation Main Business and Initiatives Representative KPIs SoftBank Initiatives Enhance corporate governance • Enhance corporate governance • Number of compliance violations: Initiatives Prepare sustainable life • Construct 5G mobile communica- Provide up-to-date, high-quality and ensure its effectiveness systems and thoroughly prevent Performance monitoring infrastructure tions systems that enable high networks Build a sophisticated governance compliance violations (annually) speed, large capacity, low latency, Provide communications services • 5G deployment plan system, increase management Corporate Governance P62 • Number of compliance training and massive machine connections with stable connectivity by main- Number of base stations: transparency, and ensure to con- • Implement sophisticated internal sessions: taining a highly reliable network. SoftBank’s Technology Advantage in the 5G Era Over 10,000 (end of fiscal year controls, eliminate antisocial P53 duct corporate governance with Performance monitoring ending March 31, 2021) integrity and fairness. forces, and prevent corruption (annually) • Provide communications services Over 50,000 (end of fiscal year with stable connectivity ending March 31, 2022) Sustainable growth through • Ethical procurement and transactions • Sustainability procurement survey P55 Population coverage: cooperation with stakeholders • Sound and transparent information collection: Over 90% (end of fiscal year Pursue the creation of strong rela- disclosure 90% or greater (annually) ending March 31, 2022) tionships of trust and mutually • Cooperation with local communi- • Number of partnerships with • Number of major network acci- sustainable development through ties through initiatives such as NPOs: dents: timely and appropriate information disaster management agreements 1,000 organizations (fiscal year Zero (fiscal year ending March 31, disclosure and ongoing dialogues and the Social Emergency Man- ending March 31, 2024) 2021) with stakeholders. agement Alliance (SEMA) • Submarine cable “ADC (Asia Direct Cable)”: Start operation Enhance employee happiness • Support for employee growth and Create a working environment that (fiscal year ending March 31, with diversity and inclusion career realization* is easy for anyone to work in

2023) Work to build an environment in P74 • Number of women in manage- which all employees can fully • Fair evaluation and recruitment ment positions: 300 (fiscal year demonstrate their unique abilities system ending March 31, 2023) Construct robust communica- • Redundancy in backbone networks • Establishment of three main and enjoy personal satisfaction. • Promote participation by women, • Employment of persons with tions infrastructure to contrib- routes (for Okinawa/Tohoku): • Secure communications in the including recruitment and employ- disabilities: At or above the legally ute to disaster prevention and Completion (fiscal year ending event of a disaster through teth- ment of persons with disabilities, and mandated level (annually) mitigation ered balloon radio relay systems March 31, 2022) initiatives related to LGBT persons • Paid leave acquisition rate: • Equipment and materials for Take daily actions to maintain our P78 Keep at 70% or above (annually) communications infrastructure in disaster response and recovery: • Harassment prevention • Accidents at work sites involving the event of a disaster and recover Support and enhancement *Free-agent system and job posting system, SoftBank University, SoftBank career dock injury or death: Zero (annually) rapidly when one occurs. (annually) Enhance productivity with • Work-style reforms*1 Promote work-style reform and Promotion of data security and • Network monitoring and operation • Number of major accidents involv- advanced workplace • Promote health and productivity health and productivity management privacy protection initiatives utilizing AI ing information security: environments management • Provide office environments that As a safe and secure telecommuni- • Develop and operate high-level Zero (annually) Use technology to promote work- • Relocate the corporate headquar- encourage diverse working styles: cations carrier, we monitor and security environments • Number of major accidents involv- style reform and health and produc- ters to a smart building Performance monitoring (annually) operate networks using the latest • Thoroughly educate employees on ing privacy issues: tivity management. • Promote diverse working styles • Teleworking ratio: technologies and conduct thorough security Zero (annually) unconstrained by time or place*2 70% or greater (annually) security education for employees. *1 Super Flextime System, teleworking, operational • Ratio of smokers: • Implementing initiatives that help improvements using technologies like AI and RPA, customers to understand how to permitting employees to take side jobs Less than 20% (annually) *2 Teleworking, use of co-working offices handle their personal information • High ranking in Japan surveys: Create an Environment where Diverse Employees Can Do Their Best Work Highly ranked among the major P77 Note: More information on our information security initiatives can be found under “ESG Activities” at the following URL: surveys (annually) https://www.softbank.jp/en/corp/sustainability/

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Performance Highlights

[Financial] Net Income Attributable to Owners of Revenue Operating Income the Company Total Assets Interest-bearing Debt Credit Ratings*5

¥ billion ¥ billion ¥ billion ¥ billion ¥ billion 4,861.2 911.7 473.1 9,792.3 5,082.3 Rating and Investment Informa- Basic Earnings per Share*1 Net Interest-bearing Debt tion, Inc. (R&I) A+ (Billions of yen) (Billions of yen) ¥ 99.27 (Billions of yen) ¥ 3,938.4 billion (stable)

412 11 (Yen) (Billions of yen) 23 4,656.8 107.53 23 818.2 Japan Credit Rating Agency, Ltd. (JCR) 97.37 2 8,036.3 678.7 96.60 3,483.1 3,582.6 3,410.6 644.0 637.9 3,491.7 AA− 97.64 334 (Billions of yen) 431 3,226.5 (stable) 441.2 462.5 399.5 400.7 5,305.6 3,105.5 4,767.1 4,691.0 2,106.9 2,013.1 2,553.3 1,974.7 1,963.3

2016 2017 2018 2019 2020 2016 2017 2018 2019 2020 2016 2017 2018 2019 2020 2016 2017 2018 2019 2020 2016 2017 2018 2019 2020 (Fiscal year ended March 31) (Fiscal year ended March 31) (Fiscal year ended March 31) (Fiscal year ended March 31) (Fiscal year ended March 31) Basic Earnings per Share Net Interest-bearing Debt Net income attributable to owners of the Company Interest-bearing Debt

Total Equity Attributable to Owners of Ratio of Equity Attributable to Owners (Ratio of net income to equity attributable to 2 3 Adjusted EBITDA* Adjusted Free Cash Flow* ROE owners of the Company)*4 the Company of the Company to Total Assets*6

¥ 1,606.5 billion ¥ 524.2 billion 37.9% ¥ 1,000.5 billion 10.2%

Ratio of Total Equity to Total Asset

*The Company has adopted IFRS 15 from the fiscal year ended (Billions of yen) (Billions of yen) (Billions of yen) 17.4% March 31, 2019. IFRS 15 has been retrospectively applied to the figures for the fiscal year ended March 31, 2018. In addition, we have adopted IFRS 16 “Leases” starting from the 1 613.1 1,508.4 1,538.8 1,498.2 fiscal year ended March 31, 2020. Transactions under common control are accounted for as if such transactions were executed 3 by SoftBank Corp. and its subsidiaries on the later of the 242 acquisition date of the transferred companies by SoftBank 1,367.1 508.0 512.0 33.0 Group Corp. or the opening balance sheet date of the 31.2 31.6 comparative period. As a result, the figures for Z Holdings 1,175.1 29.0 Corporation, which became a subsidiary in June 2019, have 1,156.8 32.8 been revised retroactively to be consolidated for the fiscal year 32.8 1 31.6 25.2 ended March 31, 2019. 866.6 *1 Earnings per share attributable to owners of the Company. *2 Adjusted EBITDA = operating income + depreciation and amortization (including loss on disposal of non-current assets) 16.7 14 ± other adjustments *3 Adjusted free cash flow = free cash flow ± total cash flows relating to non-recurring transactions with SoftBank Group 18.6 Corp. + (proceeds from the securitization of installment sales 16.3 receivables – repayments thereof). Excludes Z Holdings Group for fiscal year ended March 31, 2019. Excludes Z Holdings Group and impact from adopting IFRS 16 for fiscal year ended 12 March 31, 2020. *4 ROE (Ratio of net income to equity attributable to owners of the Company) = net income attributable to owners of the Company / average equity attributable to owners of the Company over the fiscal year *5 In regard to issuer credit ratings, as of July 9, 2020 the 2017 2018 2019 2020 2017 2018 2019 2020 2017 2018 2019 2020 2016 2017 2018 2019 2020 2016 2017 2018 2019 2020 Company has maintained the same ratings obtained last year from Rating and Investment Information, Inc. (R&I) and Japan (Fiscal year ended March 31) (Fiscal year ended March 31) (Fiscal year ended March 31) (Fiscal year ended March 31) (Fiscal year ended March 31) Credit Rating Agency, Ltd. (JCR). Ratio of equity attributable to owners of the Company to *6 Ratio of equity attributable to owners of the Company to total assets total assets = total equity attributable to owners of the Company / total assets Ratio of total equity to total asset

20 SoftBank Corp. INTEGRATED REPORT 2020 SoftBank Corp. INTEGRATED REPORT 2020 21 Who We Are

Performance Highlights

[SoftBank’s Sustainability]

Environment-related (E) Society-related (S)

In April 2020, we endorsed the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD) and set environmental We are working to promote diversity, including the active issues and targets, including for climate change. participation of women. The percentage of men taking childcare leave has also increased year by year.

Greenhouse gas emissions (total) Energy consumption (electricity) Number of women in management positions (SoftBank only) 300 774,759 t-CO2 1,644,203 thousand kWh Percentage of employees taking childcare leaves (women) Emissions per communication fee 100% Percentage of employees taking childcare leaves (men)

628 t/Gbps 28% (t-CO2) (t/Gbps) (thousand kWh) 14423 733,515 100 100 100 1 797,432 4 1,357,222 1,418,791 1,493 722,514 693,953 1,338,019 1,355,703 3 1,116 272 228 241 849 682 2 20 14 2 9

2016 2017 2018 2019 2020 2016 2017 2018 2019 2020 2016 2017 2018 2019 2020 (Fiscal year ended March 31) (Fiscal year ended March 31) (Fiscal year ended March 31)

Scope 1 Scope 2 (left) Note: The target for the fiscal year ending March 31, 2031 is Number of women in management positions (SoftBank only) Emissions per communication fee (right) expected to be 2,500,000 thousand kWh, 1.5 times the Note: The number of women in management positions is Note: Values are determined based on the following boundaries: target for the fiscal year ended March 31, 2020, to cope counted on April 1 of each year • Through fiscal year ended March 31, 2019: All SoftBank Corp. (standalone basis) business sites with increased traffic due to provision of 5G services, Percentage of employees taking childcare leaves (women) • Fiscal year ended March 31, 2020: All SoftBank Corp. (standalone basis) business (SoftBank + major subsidiaries) sites and major affiliates (Yahoo Japan Corporation, ASKUL Corporation) etc. Note: This covers approximately 90% of the Group’s total electricity consumption. Percentage of employees taking childcare leaves (men) • Values increased in fiscal year ended March 31, 2020 due to a change in boundaries (SoftBank + major subsidiaries)

Society-related (S) Governance-related (G)

Work hours are on a downward trend due to the initiatives Four of the eleven members of the Board of Directors are independent external directors, which strengthens the mutual monitoring ability such as “Smart & Fun!” workstyle reform which aims to of the directors. We are also striving to strengthen information security and aim to achieve zero serious information security and privacy reduce work hours through the use of AI and RPA. accidents every year. Number of employees Ratio of independent Number of information (SoftBank only) external directors security accidents

17,299 36.4% 0 Total working hours per year Number of cases of personal informa- (SoftBank only) Ratio of female directors tion leakage or data theft/loss 1,756 9.1% 0 17,178 17,176 17,148 17,115 12

36.4 34 1,844 1,811 1,764 1 1

9.1 1

0 0 0 0 0 0 0 2016 2017 2018 2019 2020 2019 2020 2016 2017 2018 2019 2020 (Fiscal year ended March 31) (Fiscal year ended March 31) (Fiscal year ended March 31)

Number of employees (SoftBank only) Ratio of independent external directors Number of information security accidents Total working hours per year (SoftBank only) Ratio of female directors * Disclosed in accordance with the Company’s information security policy Number of cases of personal information leakage or data theft/loss * Disclosed based on guidance from regulatory authorities and in violation of laws and regulations 22 SoftBank Corp. INTEGRATED REPORT 2020