Integrated Report 2020 SoftBank Corp. SoftBank Group Corporate Philosophy Information Revolution — Happiness for Everyone Since our founding, the SoftBank Group has sought to use the Information Revolution to contribute to the wellbeing of people and society. The unlimited potential of the Information Revolution should be deployed in the right way, so that it brings happiness to humanity. This vision is a driving force for the SoftBank Group as we continue to pursue growth. SoftBank Corp. INTEGRATED REPORT 2020 1 CONTENTS SECTION 1 SECTION 2 SECTION 3 SECTION 4 Appendix 3-22 23-56 57-84 SECTION 1 SECTION 2 SECTION 3 Who We Are Strategy for Value Creation The Foundation Supporting Value Creation 4 The SoftBank Story 24 A Message from the CEO 58 Corporate Governance 6 Group Structure 34 Road to Achieving Operating Income of 72 Risk Management ¥1 Trillion in the Fiscal Year Ending 8 Value Creation Process 74 Human Resource Strategy March 31, 2023 12 Priority Issues (Materiality) — Growth Strategy × Structural Reform 81 Environmental Initiatives 20 Performance Highlights 36 Growth Strategy 36 Consumer Segment 40 Enterprise Segment 42 Yahoo Segment 46 New Business Fields Strategy 52 Technology Strategies SECTION1 56 Structural Reform Who We Are 85-104 105-115 4 The SoftBank Story SECTION 4 Financial Information Appendix 6 86 Financial Strategy / A Message from 106 ESG Data Book Group Structure the CFO 115 Corporate Data / Stock Information 90 Business Overview 8 94 Review and Analysis of the Fiscal Year Ended March 31, 2020 Value Creation Process 100 Consolidated Statement of Financial Position 12 102 Consolidated Statement of Income and Consolidated Statement of Priority Issues (Materiality) Comprehensive Income 103 Consolidated Statement of Changes in 20 Equity Performance Highlights 104 Consolidated Statement of Cash Flows SoftBank Corp. Integrated Report 2020 Editorial Policy Cautionary Statement with Respect to Forward-Looking Statements This integrated report has been prepared with reference to the International Integrated Reporting Statements concerning such matters as current plans, forecasts, and strategies in this integrated report Framework and Guidance for Collaborative Value Creation advocated by the International Integrated include forward-looking statements that reflect the assessments made by the Company in light of the Reporting Council (IIRC). Accordingly, we have sought to optimize the report’s effectiveness as a information available to it when preparing the report. Please be aware that various factors could cause communication tool by organizing financial and non-financial information to illustrate how our diverse the Company’s actual business results to differ significantly from forecasted business results. Risks and initiatives are part of a cohesive, strategic vision. SoftBank will continue enhancing the contents of its uncertainties that could affect actual business results include the Company’s business environment, integrated reports going forward with the aim of furthering understanding of the Company among its competition in markets, foreign exchange rates, taxes, and various systems. shareholders and investors and a wide range of other stakeholders. Company Name or Abbreviation in this Report Report Period Company Name or Abbreviation Meaning From April 1, 2019 to March 31, 2020 Note: Certain information concerning matters before and after this period has also been included The Company, SoftBank SoftBank Corp. (standalone basis) The Group SoftBank Corp. and its subsidiaries Report Scope SoftBank Group Corp. SoftBank Group Corp. (standalone basis) SoftBank Corp. and its subsidiaries and affiliates SoftBank Group SoftBank Group Corp. and its subsidiaries Monetary and Percentage Amounts in This Report Z Holdings Z Holdings Corporation (standalone basis) In this integrated report, monetary amounts less than the stated units have been rounded, and percentage amounts less than a unit of the stated digits have been rounded. Z Holdings Group Z Holdings Corporation and its subsidiaries 2 SoftBank Corp. INTEGRATED REPORT 2020 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 Japan by spreading the internet 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 smartphone 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 telecommunications 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 Masayoshi Son 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 social media, 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 smartphones, feature phones, tablets, mobile data communication devices, Wireless 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 1981 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 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