SoftBank : Earnings Investor Briefing for the Three Months Ended June 30, 2020 (FY2020)

Earnings Results for the Three Months Ended June 30, 2020

Investor Briefing

SoftBank Corp.

August 4, 2020

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.

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For the definitions of numbers on this presentation, please refer to SoftBank Corp.'s data sheet.	2

Contents

1	Results for Q1 FY2020	p.4 - p.20

2
Road to Achieve JPY 1 Trillion		p.21 - p.26
		Operating Income

3

Results for Q1 FY2020

(refer to p15)

Results for Q1 FY2020

• Revenue, operating income and net income are progressing at a steady pace towards full-year forecasts
• Net income decreased due to the temporary factors such as gain from sales of shares in previous year

		Revenue
[JPY bn]	Progress 24%	Progress 24%
		FY Actual	FY Forecast
52,000		4,861.2	4,900.0
50,000
48,000				14,000
46,000
44,000
42,000				12,000
40,000
38,000
36,000
34,000				10,000
32,000
30,000			37,274
28,000				8,000
26,000
24,000
22,000
20,000			+7.8	6,000
18,000
16,000			+0.7%
14,000			4,000
12,000
10,000
8,000				2,000
6,000	Q1	1,164.9	1,172.6
4,000
2,000
0				0
		FY19Q1	FY20Q1

Operating Income

[JPY bn]

Progress 29%	Progress 30%
FY Actual	FY Forecast

911.7	920.0
	6,401
	+11.1
	+4.1%
268.9	279.9
FY19Q1	FY20Q1

Net Income*1

[JPY bn]

Progress 35%	Progress 31%
FY Actual	FY Forecast

473.1	485.0
-12.7	3,329
-7.7%
164.8	152.1
FY19Q1	FY20Q1

*Actuals for FY19 have been adjusted retrospectively to have consolidated ZHD from April 1, 2018, same hereafter
*1: Net income: net income attributable to owners of SoftBank Corp., same hereafter	5

Revenue (1/2)

• Yahoo: JPY +35.2 bn (+14.8%) YoY, Enterprise: JPY +8.1 bn (+5.2%) YoY
• Consumer: JPY -32.6 bn (+0.6%) YoY, due to decrease of revenue JPY -31.1 bn from sales of goods and others.
  Service revenues remained flat YoY, due to impact of First-yearand Half-yeardiscounts of c. 10 bn (including accounting changes)

14,000

12,000 Other

Yahoo

10,000

Distribution

8,000

Enterprise

6,000

4,000

Consumer

2,000

0

Adjustments

-2,000

By Segment

[JPY bn]

1,164.9	+7.8	1,172.6
+0.7%	YoY
23.3		29.5	+6.2	+26.6%
238.6		273.9	+35.2	+14.8%
116.4		109.9	-6.6	-5.6%
154.5		162.5	+8.1	+5.2%

658.1

625.4

-32.6-5.0%

-26.0-28.6

FY19Q1FY20Q1

Consumer Breakdown

[JPY bn]

*Disclose "Electricity" separately in breakdown (previously included in Revenues from sales of goods and others)

-32.6

Revenue from	658.1	-5.0%	625.4	YoY
sales of goods
128.4			-31.1	-24.2%
and others		97.4
Electricity	11.3		18.9	+7.6	+67.5%
Broadband	95.0		97.2	+2.2	+2.3%
	Mobile	423.3		412.0	-11.4	-2.7%
Service	529.6		528.1	-1.6	-0.3%
revenues
		FY19Q1		FY20Q1

6

Revenue (2/2)

• Enterprise: JPY +8.1 bn (+5.2%) YoY in Business solution and others
• Yahoo: double-digit growth. Commerce has grown significantly, JPY +41.2 bn (+25.0%) YoY

Enterprise Breakdown		Yahoo Breakdown
	4,000
[JPY bn]	[JPY bn]

							+35.2	273.9
							+14.8%	YoY
2,000		+8.1					238.6	0.5	-0.9	-63.2%
		+5.2%	162.5	YoY		Other	67.5	-5.1	-7.0%
	154.5		1.4
Business solution			43.4	+5.8	2,000	Media	72.6
37.5		+15.6%
and others
Fixed-line	49.1		47.3	-1.8	-3.7%			205.9	+41.2	+25.0%
					Commerce	164.7
						ZOZO
			71.9	+4.0	+6.0%
Mobile	67.8					consolidation
0					0				c.+33.4 bn
	FY19Q1		FY20Q1				FY19Q1	FY20Q1
						*Revenue for Commerce and Media is restated for FY2019 to reflect the transfer of	7
						certain services and subsidiaries from Commerce to Media in April 2020

Operating Income/Adjusted EBITDA/Segment Income

• Adjusted EBITDA: JPY +18.9 bn (+4.4％) YoY, operating income: JPY +11.1 bn (+4.1％) YoY, recorded good progress in Q1
• Yahoo made significant increase YoY, income also increased in Enterprise and Distribution.

Consumer: JPY -16.4 bn (-8.0％) YoY, however, its full-year income for FY20 expected to increase YoY

Operating Income/Adjusted EBITDA*1

Segment Income

	[JPY bn]	+18.9
Adjusted EBITDA	434.3	+4.4%	453.2
4,000
		+11.1		3,600
Operating Income	268.9	+4.1%	279.9
				Yahoo
				Distribution
2,000				Enterprise
				1,600
				Consumer
0				Other*2
	FY19Q1		FY20Q1	-400

[JPY bn]

+11.1

268,689.9 +4.1% 279.9

2,799

36.2	3.2
50.6
5.3
	5.5
28.1
		31.3

205.7189.4

-6.5

FY19Q1FY20Q1

YoY

Other*2

+9.6

+14.5 +40.0%

+0.2 +4.3%

+3.1 +11.1%

-16.4-8.0%

*1: Adjusted EBITDA＝operating income＋depreciation and amortization	*2: Other includes inter-segment adjustments (FY19Q1 6bn, FY20Q1 -6 bn), same hereafter	8
(including loss on disposal of non-current assets) ±other adjustments

Operating Income (YoY Comparison)

• Income of Consumer decreased due to mobile device related factors and impact from introduction of First-yearand Half-yeardiscounts (accounting change, etc.). Increase of income in Yahoo and enterprise drove overall performance

-16.4

+3.1

+0.2

+14.5

+9.6

[JPY bn]

Consumer

Enterprise

Distribution

Yahoo

Other

-1.6

-31.1

-3.2

+8.1

-4.9

-6.6

+6.8

+14.5

+9.6

Service

+19.5

revenues

Revenues

Cost of

Other

Revenue

Expenses

Revenue

Expenses

expenses

from sales

goods sold

of goods

Mobile

-11.4

Cost of service

-7.2

Cost of goods/

Cost of goods sold +7.2

Commerce*

+19.7

Broadband

+2.2

Sales commissions and

service sold

-5.6

Other

-0.4

Media*

-1.5

279.9

268.9

Electricity

+7.6

sales promotion expenses

+15.6

Other

+0.7

Other

-3.7

Telecom network charges

-2.7

Other

-6.2

Depreciation and

amortization

-2.7

+11.1 bn

FY19Q1FY20Q1

*Figures of Commerce and Media in Yahoo segment represent segment income/loss of ZHD	9

Summary of Results

• Negative impact of COVID-19 was limited compared to assumptions as of May when financial guidance was

[億円announced,]cost reduction is in good progress, and upside effects such as telework demand was larger than expected

[JPY bn]	FY19Q1	FY20Q1	YoY		Reasons for variance
Operating income	268.9	279.9	+11.1
Consumer	205.7	189.4	-16.4	-12.0	Mobile device related (recording of reserve, decrease in mobile device sales, etc.)
-10.0First-year and Half-year discounts (including accounting changes)
Enterprise	28.1	31.3	+3.1	Increase in telework demand
Distribution	5.3	5.5	+0.2	-
				+7.0	ZOZO consolidation
Yahoo	36.2	50.6	+14.5	+7.0	EC usage increase
+3.0	Cost reduction effect
				-4.0 Ad placement decline
Other	-6.5	3.2	+9.6	-

10

Cumulative Subscribers (Main Subscribers/Smartphones)

• Cumulative main subscribers reached 36.87 mil (+1.86 mil YoY)
• Cumulative smartphones reached 24.50 mil (+2.04 mil YoY), similar increase to last year, steady growth in all 3 brands

Cumulative Subscribers*1

Smartphone Subscribers

[Mil]

YoY

[Mil]

40

36.87

40

35.01

36.50

+1.86

Main Subscribers

12.56

12.36

12.37

-0.19

Other*2

22.45

24.13

24.50

20

20

Smartphones

22.45

24.13

24.50

+2.04

QoQ

QoQ

(+0.36)

(+0.37)

0

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Q1

0

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Q1

FY18

FY19

FY20

FY18

FY19

FY20

*1: Cumulative subscribers include Wireless Home Phone subscribers (FY19Q1: 0.48 mil, FY20Q1: 0.55 mil)

*2: Feature phones, tablets, mobile data communications devices, Wireless Home Phones, etc.

11

Churn Rate (Main Subscribers/Smartphones)

• Churn rates for main subscribers and smartphones reached record lows, smartphone churn rate dramatically improved, YoY -0.28%

0.01

0.01

0.01

0.01

0.01

0.00

0.00

0.00

1.03%

0.99%

0.81%

0.72%

YoY

0.73%	-0.29% Main subscribers

0.53% -0.28% Smartphones

Q1	Q2	Q3	Q4	Q1	Q2	Q3	Q4	Q1
		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 gradually decreasing due to unbundling plan (b)

[JPY]										YoY
				5,250			4,920	4,810	(a)	-440
4,500
				4,450			4,330	4,300	(c)	-140
2,500
500
				-800			-590	-510	(b)	+300
-1,500
Q1	Q2	Q3	Q4	Q1	Q2	Q3	Q4	Q1
		FY18				FY19		FY20

ARPU before discount

Total ARPU (after discount)

1. = (a) + (b)
   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 (connected lines) reached 6.60 mil, steadily increased by 0.55 mil YoY
• Increase in subscribers accelerated partly from increase in telework demand (Net adds of FY20Q1 +0.14, FY20Q1 +0.06) Home Bundle Discount Hikari Set steadily increased

Cumulative Subscribers

Home Bundle Discount Hikari Set

(Number of Connected Lines)

Cumulative Subscribers

[Mil]

YoY

[Mil]

YoY

8

7.70

7.85

7.99

+0.28

10.09

10.19

+0.55

9.64

1.46

1.39

-0.27

10

Mobile

1.65

Other

×2.1*2

6

8

4

6 Broadband

4.53

4.75

4.83

+0.30

6.60

*1

6.05

6.39

+0.55

4

QoQ

QoQ

(+0.14)

2

(+0.06)

2

0

0

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Q1

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Q1

FY18

FY19

FY20

FY18

FY19

FY20

*1: SoftBank Hikari includes SoftBank Air

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

14

Net Income (YoY Comparison)

• Effect from one-time factors of last fiscal year such as gains on sales and valuations of shares (a)
• Shares of profit/losses of associates accounted for using the equity method: Loss increased from upfront marketing investment to new businesses, such as PayPay (b)
• Impact on net income attributable to non-controlling interests mainly came from ZHD earning growth (c)

[JPY bn]	(a)
	(b)
+11.1	-9.9			(c)
-3.6	+0.2	-2.3
Operating	Effect from one-	-8.2
income	Shares of	Financing	Income taxes
time factors of	Net income
	profit/losses of	income/costs,
	last FY
	associates	Gains on sales of		attributable to
	(gains on sales
	accounted for	equity method		non-controlling
	and valuations)	using the equity
	investments		interests
		method
164.8					152.1
		-12.7 bn
FY19Q1					FY20Q1

15

CAPEX/Adjusted Free Cash Flow

• CAPEX was JPY 76.2 bn. CAPEX excluding ZHD was JPY 58.3 bn
• Adjusted free cash flow excluding ZHD (including IFRS 16 impact) was JPY 236.3 bn. Steady progress towards full-year target of JPY 670.0 bn

CAPEX*1

[JPY bn]
90
80	76.1	76.2
70		17.9
ZHD	25.6
60
50
40			Full-year forecast
30		58.3	400.0
SoftBank	50.5
(excluding IFRS 16)		(Progress 15%)
20
10
0
	FY19Q1	FY20Q1

Adjusted FCF*2

[JPY bn]

(Total) (126.5)

(179.2)

Full-year target

236.3	670.0
	(Progress 35%)

		34.0	120.0
SoftBank	159.0
IFRS 16 impact	31.0
		202.3	550.0
	128.0
	-32.5*3	-57.1
	FY19Q1	FY20Q1

*1: CAPEX is on acceptance basis. Excludes CAPEX for rental	*2: Adjusted FCF = FCF ± total CF relating to non-recurring transactions with SoftBank Group Corp. + (proceeds from the
mobile phones and impact from IFRS 16	securitization of installment sales receivables - repayments thereof)
	*3: Sum of ZHD's disclosed FCF and dividend payments from ZHD to SoftBank Corp. (5.4 bn) (including impact of IFRS 16 in ZHD) 16

Interest-bearing Debt/Net Interest-bearing Debt

and Net Leverage Ratio

• Accumulated cash in hands to prepare for COVID-19 by full securitization of sales receivables. Interest-bearing debt increased QoQ partly due to the issuance of bonds by ZHD of JPY 200.0 bn
• Net leverage ratio slightly increased due to seasonal factors such as payments of dividends and income tax, JPY 495.5 bn in total

	Interest-bearing Debt/			Net Leverage Ratio*4,5
	Net Interest-bearing Debt*1
[JPY tn]	5.58	Interest-bearing debt

	5.08	0.48	IFRS 16	2.8
4.64	0.50
0.49		1.10	ZHD consolidation
		Net interest-bearing debt
0.38	0.98
	0.19	4.03
0.01	3.87		Other
3.70	0.16			2.3x

1.19	1.11	Lease liabilities*2
		1.8
	1.14
	Securitization of
0.96	1.09
sales receivables
0.69	1.7x

		Including IFRS 16
	2.4x		2.5x
	2.5x		2.4x
2.2x	2.3x
	Excluding IFRS 16

	1.9x	1.9x
		1.7x
1.5x	Adjusted net leverage ratio

(excluding effect of securitization

1.60

1.61

1.61

Bank loans*3

of sales receivables and IFRS 16)

0.8

Q1

Q2

Q3

Q4

Q1

Q1

Q2

Q3

Q4

Q1

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

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

*2: Lease liabilities for FY19 are liabilities and borrowings related to sale and leaseback transactions of

*5: LTM EBITDA of ZOZO retrospectively adjusted for FY19Q3, Q4 and FY20Q1

SoftBank Corp. (standalone basis) and WCP (including payables from purchase of installments)

17

*3: Senior Loan Agreements which SoftBank Corp. entered in October 2019

Major Financing Activities (Excluding ZHD)

• Secured sufficient liquidity on hand in preparation for COVID-19
• Succeeded in the large-scale straight bond issuance of JPY 100.0 bn due to strong investors' appetite

Category	Events	Purpose, effect, etc.	FY20Q1	Time
balance	period
		Securitization of telecom	Receivables securitization facility to secure working	JPY 298.0 bn	From
		service fee receivables	capital (Facility amount: JPY 300.0 bn)	Apr 2020
Secure	Securitization of	Improve efficiency by securitization of installment			From
liquidity on	installment receivables	JPY 52.3 bn
receivables (Facility amount: JPY 250.0 bn)	Apr 2020
hand	through self settled trusts
		Issuance of short-term	Financing of working capital with low interest	JPY 129.1 bn	From
		corporate bonds (CP)	Apr 2020
		2nd issuance of bonds	Diversification of medium-tolong-term financing	JPY 100.0 bn
		sources	(Proceeds,	Jul 2020
Corporate			Financing for repayment of borrowings	Issued in Jul)
bonds
	Renewal of credit ratings	Preparations for the issuance of corporate bonds	R&I	A+	Jul 2020
		Obtaining opinions on financial independence	JCR	AA-

18

Status of Assets and Equity

• Shareholders' equity ratio is 9.5%, -0.7% from end of March 2020 (Ratio of total equity to total asset 16.4%)
• Shareholders' equity ratio would be 12.7%, excluding the accounting treatment in connection with ZHD consolidation

[JPY bn]	As of	As of	Variance
Mar 31, 2020	Jun 30, 2020
Cash and cash equivalents	1,143.8	1,469.4	+325.6
Others	8,648.5	8,609.1	-39.4
Total assets	9,792.3	10,078.5	+286.2
Interest-bearing debt	5,082.3	5,575.4	+493.1
Others	3,002.4	2,846.0	-156,4
Total liabilities	8,084.7	8,421.4	+336.7
Total equity attributable to owners of	1,000.5	957.4	-43.1
the Company
Others	707.0	699.7	-7.3
Total equity	1,707.6	1,657.1	-50.5
Shareholders' equity ratio*	10.2%	9.5%	-0.7%
Ratio of total equity to total asset	17.4%	16.4%	-1.0%

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

10.2%	Decrease of	Increase of
	equity	asset	9.5%

-0.4%-0.3%

	Equity ratio -0.7％
As of	As of
Mar 31, 2020	Jun 30, 2020

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

Market price of ZHD (SB's share)	1396.4
(As of Aug 3, 2020)
Consolidated book value*	371.6
(As of Jun 30, 2020)

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

19

Timeline of Business Integration between ZHD and LINE

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

		Commencement of	Commencement of
		joint tender offer for	tender offer for
Signing of	Signing of	LINE shares by	ZHD shares by
SoftBank & NAVER	LINE
Memorandum of	Definitive	Closing
Understanding	Agreement

Various filings / examination / procedures

• Anti-trustfiling
• Execution of transactions including TOB

20

Road to Achieve JPY 1 Trillion

Operating Income

Financial Targets

	FY19 Actual	FY20 Forecast		FY22 Forecast
Revenue	JPY 4,861.2 bn	JPY 4,900.0 bn		JPY 5,500.0 bn
Adjusted EBITDA*1	1,603.1 bn	1,630.0 bn		1,700.0 bn
Operating income	911.7 bn	920.0 bn		1,000.0 bn
Net income*2	473.1 bn	485.0 bn		530.0 bn
CAPEX*3	371.3 bn	400.0 bn		c. 400.0 bn
Adjusted FCF*4	644.7 bn	670.0 bn		Over 670.0 bn
Net leverage ratio*5	2.4 times	－		Improve from 2.4 times

*1: Adjusted EBITDA＝operating income＋depreciation and amortization (including loss on disposal of non-current assets) ±other adjustments
*2: Net income: net income attributable to owners of SoftBank Corp.
*3: CAPEX is on acceptance basis. Excludes CAPEX for ZHD, rental mobile phones, and impact from IFRS 16
*4: Adjusted FCF = FCF ± total CF relating to non-recurring transactions with SoftBank Group Corp. + (proceeds from the securitization of installment sales receivables - repayments thereof). Excludes ZHD	22
*5: Net leverage ratio = Net interest-bearing debt/ Adjusted EBITDA (LTM)

Profit and Business Targets by Segments (FY20-FY22)

• Continue to accelerate "Beyond Carrier" strategy to achieve operating income of over JPY 1 tn and pursue
  [億円growth]continuously thereafter

Operating Income

[JPY]

over 1 tn

Profit targets by Segment

911.7 bn	920 bn
Other
Yahoo
Distribution
Enterprise
Consumer
FY19	FY20	FY22
	Forecast	Forecast

Consumer	Profit increase every year
Enterprise	Double-digit profit increase every year
Yahoo	Profit increase / Operating profit 225.0 bn in FY23

Business targets

30 mil smartphone users in FY23

Double-digit growth in revenue of Business Solution and Others (Enterprise)

Achieve No.1 in e-commerce transaction value in Japan by mid-2020s (Yahoo)

Reduce loss on equity investments

23

Structural Reform - Cost Efficiency

• We aim to reduce fixed costs to absorb increase from new business expansion, and thus keep total fixed costs flat

Cost of Sales and Selling, General and

Administrative Expenses

[JPY]

ZHD	Depreciation
c. 1 tn	and amortization
	Operating	Other
	expenses	fixed costs

c. 4 tn

Sales

commissions

and others Costs of goods sold

Fixed costs of Consumer and Enterprise business

c. 1 tn

Depreciation, network-related, personnel, advertising, sales promotion, shop and office expenses, etc.

Cost Efficiency Measures

Consumer and	Flat fixed costs
Enterprise business

1. Productivity improvement and workstyle reform through digitalization
2. • Digitization of operations in mobile shops, etc.
   • Workstyle reform in "New Normal"
3. Network efficiency and optimization

• Optimization of equipment after termination of PHS, 3G, etc.
• Infrastructure sharing with KDDI

[JPY]	c. 50 bn	c. 50 bn

Variable costs

c. 2 tn

FY19

Fixed	Cost increase	Create strategic	Fixed
costs	due to growth	funds through	costs
c. 1 tn	strategy	efficiency	c. 1 tn

FY19	FY22	24

Financial Discipline

• We aim to generate stable free cash flow, and strengthen financial position by decreasing interest-bearing debt over years

Adjusted FCF (excludes ZHD)*1Net Leverage Ratio*2

Over 670 bn every year	Improve from 2.4x
(excluding impact from LINE TOB)	(excluding impact from LINE TOB)

[JPY bn]	644.7	over 670
	IFRS 16
512.0	impact
FY18	FY19	FY20	FY21	FY22

2.7x

2.4x

Including IFRS 16 impact

2.4x 2.3x

Excluding IFRS 16 impact

FY17

FY18

FY19

FY22

*1: Adjusted FCF = FCF ± total CF relating to non-recurring transactions with SoftBank Group Corp.	*2: Net leverage ratio = Net interest-bearing debt/ Adjusted EBITDA (LTM)
+ (proceeds from the securitization of installment sales receivables - repayments thereof). Excludes ZHD	25

Shareholder Returns

• Continue stable and high dividend payments

Achieve both growth and

shareholder returns

Shareholder

Growthreturns

Shareholder Returns

No dividend reduction every year / total shareholder return ratio of c. 85%

	(3-year weighted average*)
[JPY]			86+α
	86	Share
	85
	buyback
75			Dividend
		Per
			share
FY18	FY19	FY20	FY22

*Total dividends and share buybacks for FY20-FY22 / total net income attributable to	26
owners of SoftBank Corp. for FY20-FY22

Appendix

Consolidated Statements of Income

[億円]	[JPY bn]	FY19Q1	FY20Q1	Variance	Reasons for Variance
	Revenue	1,164.9	1,172.6	+7.8
	Cost of sales	-579.8	-569.6	+10.2
	Gross profit	585.1	603.1	+18.0
	Selling, general and administrative expenses	-316.2	-323.1	-6.9
	Operating Income	268.9	279.9	+11.1
	Share of gain / losses (-) of associates	-5.7	-9.3	-3.6	Increase in investments for business expansion of PayPay
	accounted for using the equity method
	Financing income	5.3	3.4	-1.8
	Financing costs	-14.3	-16.7	-2.3
	Gains on sales of equity method investments	5.5	-	-5.5
	Profit before income taxes	259.5	257.4	-2.2
	Income taxes	-86.9	-89.2	-2.3
	Net income	172.6	168.1	-4.5
	Net income attributable to
	Owners of the Company	164.8	152.1	-12.7
	Non-controlling interests	7.8	16.0	+8.2	Increase due to profit increase of ZHD

28

Consolidated Statements of Financial Position (Assets)

[億円円]]	[JPY bn]	As of	As of	Variance	Reasons for Variance
Mar 31, 2020	Jun 30, 2020
	Total assets	9,792.3	10,078.5	+286.3
	Current assets	3,364.3	3,674.2	+309.9
	Cash and cash equivalents	1,143.8	1,469.4	+325.6	Increase in funds procured from securitization of sales receivables
	Trade and other receivables	1,800.3	1,759.7	-40.6
	Other financial assets	94.9	86.0	-8.9
	Inventories	96.9	117.1	+20.2
	Other current assets	228.4	242.0	+13.6
	Non-current assets	6,428.0	6,404.3	-23.6
	Property, plant and equipment	986.1	1,037.0	+50.9	Increase in telecommunication facilities
	Goodwill	618.6	624.8	+6.2
	Intangible assets	1,709.5	1,694.7	-14.8
	Right-of-use assets	1,234.5	1.1	-96.6	Decrease from depreciation
	Contract costs	212.6	216.6	+4.0
	Investments accounted for using the	80.1	88.5	+8.4
	equity method
	Other financial assets	905.6	904.2	-1.4
	Investment securities	175.2	182.3	+7.2
	Investment securities in banking business	343.0	357.7	+14.8
	Deferred tax assets	55.9	52.6	-3.3
	Other non-current assets	106.9	108.0	+1.1

29

Consolidated Statements of Financial Position (Liabilities)

[億円]	[JPY bn]	As of	As of	Variance	Reasons for Variance
Mar 31, 2020	Jun 30, 2020
	Total liabilities	8,084.7	8,421.4	+336.7
	Current liabilities	4,496.6	4,631.2	+134.6
	Interest-bearing debt	1,811.3	2,119.8	+308.6	Increase from securitization of sales receivables
	Trade and other payables	1,253.8	1,165.9	-87.8
	Deposits for banking business	880.8	987.5	+106.7	Increase in saving accounts of The Japan Net Bank
	Contract liabilities	127.7	126.8	-0.8
	Other financial liabilities	3.8	2.8	-1.0
	Income taxes payable	153.4	60.9	-92.4	Decrease from tax payment
	Provisions	6.8	12.4	+5.6
	Other current liabilities	259.1	154.9	-104.2	Withholding tax related to dividends paid from Yahoo Japan to ZHD
	Non-current liabilities	3,588.1	3,790.2	+202.1
	Interest-bearing debt	3,271.0	3,455.5	+184.5	Bond issuance by ZHD of 200.0
	Other financial liabilities	36.8	35.9	-0.9
	Defined benefit liabilities	16.3	16.4	+0.1
	Provisions	83.9	81.8	-2.0
	Deferred tax liabilities	168.2	188.7	+20.5
	Other non-current liabilities	11.9	11.9	-0.0

30

Consolidated Statements of Financial Position (Equity)

[億円]	[JPY bn]	As of	As of	Variance	Reasons for Variance
Mar 31, 2020	Jun 30, 2020
	Total equity	1,708	1,657	-50.4
	Equity attributable to owners of the Company	1,001	957	-43.7
	Common stock	204	204	-
	Capital surplus	-134	-141	-7.5
	Retained earnings	1,004	954	-49.4	-201.5 from dividend payments by SoftBank Corp and +152.1 from
	net income in FY20Q1
	Treasury stock	-68.7	-56.5	+12.2
	Accumulated other comprehensive income	-4.7	-3.2	+1.5
	Non-controlling interests	707	700	-7.3

31

Consolidated Statements of Cash Flows

[JPY bn]	FY19Q1	FY20Q1	Reasons for Variance
Cash flows from operating activities	205.2	246.4
Net income	172.6	168.1
Depreciation	164.0	170.8
Change in working capital	-46.7	-26.2
Interest paid	-12.9	-14.8
Income taxes paid/refunded	-128.6	-270.3	Increase related to withholding tax related to dividends paid within ZHD group
Other	56.8	218.7	Increase in deposits for banking business
Cash flows from investing activities	-107.7	-154.2
Purchases of/proceeds from sales of property, plant and	-107.8	-108.7
equipment and intangible assets
Proceeds from sales/redemption of investments	3.3	-21.6	Effect from sale of shares in FY19Q1
Proceeds from obtaining control of subsidiaries	-	-9.1
Other	-3.2	-14.8
Cash flows from financing activities	-163.9	233.3
Proceeds from interest-bearing debt	589.4	612.2
Repayment of interest-bearing debt	-298.1	-468.5	Repayment of bank borrowings by ZHD
Net increase/decrease of short-terminterest-bearing debt	320.3	321.4
Cash dividends paid	-191.4	-198.7
Cash dividends paid to non-controlling interests	-23.9	-26.6
Purchase of treasury stock by subsidiaries	-526.8	-	Purchase of treasury stock by ZHD in FY19Q1
Other	-57.2	-33.1
Effect of exchange rate changes on cash and cash equivalents	-0.4	0.0
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	871.5	1,469.4
	0.0	0.0
Adjusted free cash flow	126.5	179.2

32

Subsidiaries (1/2)

• 265 group companies at the end of Jun 2020 (of which, 203 subsidiaries and 62 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.*2	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*3	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	45.1%	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			33

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.	67.9%	Securities business specializing in smartphones
Other	SB Media Holdings Corp.	100.0%	Intermediate holdings company that owns ITmedia Inc.
	ITmedia Inc.	52.8%	Operation of comprehensive IT information site ITmedia
	SB Players Corp.	100.0%	Solution services for government
	SoftBank Technology Corp.*1	53.3%	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 Hotels 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

34

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

Joint tender offer with	・JPY 5,380 per share
NAVER for LINE shares	・Total c. JPY 372 bn (c. JPY 186 bn each)

*The structure is partially omitted or simplified.	35
*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.

Proposed Transaction Structure

As of the commencement	Tender offer for LINE shares/	Transfer of	Integration of
of transaction	100% subsidization	ZHD shares	ZHD and LINE business
	Joint tender offer and squeeze-out

SB

100%

Shiodome-Z

NAVER

SB

NAVER

	100%	13.7%	86.3%
72.6%		Shiodome-Z		LINE

SB	NAVER
50%	50%

JV

(former L)

SB	NAVER
50%	50%

Unlisted	JV

44.6%

Delisted

44.6%

44.6%

Unlisted

	65.3%		Demerger and
				integration
				of LINE
Listed		ZHD	business

ZHD

LINEZHD

ZHD

Listed

Listed

Listed

Listed

Yahoo		LINE
	Successor

Cash outflow of c. JPY 186 bn	1)	LINE will acquire ZHD shares from	Integration of LINE Successor and ZHD
for each company		Shiodome-Z through tender offer	(share exchange with ZHD shares)
	2)	LINE and Shiodome will merge, and in
*The structure is partially omitted or simplified.		exchange LINE will issue shares to SB
			36
*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.

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

37