Interim report
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This translation of the financial report was prepared for reference purposes only. Should there be any inconsistency between the translation and the original Japanese document, the latter shall prevail. Consolidated Financial Report For the Six Months Ended September 30, 2025 (IFRS) November 5, 2025 (Amounts are rounded to the nearest million yen) 1. Consolidated Financial Results for the Six Months Ended September 30, 2025 (1) Consolidated operating results (Percentages are shown as year-on-year changes) Revenue Operating income Profit before income taxes Net income Net income attributable to owners of the Company Total comprehensive income Millions of yen % Millions of yen % Millions of yen % Millions of yen % Millions of yen % Millions of yen % Six Months Ended September 30, 2025 3,400,835 7.9 628,894 7.3 573,961 9.2 475,708 20.8 348,755 7.7 501,264 36.4 Six Months Ended September 30, 2024 3,152,079 7.4 585,889 13.9 525,641 4.9 393,787 5.6 323,857 7.2 367,607 (8.0) Basic earnings per share Diluted earnings per share Yen Yen Six Months Ended September 30, 2025 7.22 7.13 Six Months Ended September 30, 2024 6.83 6.72 Notes: 1. The Company conducted a stock split whereby each share of the Company’s common shares was split into 10 shares, with the effective date being October 1, 2024. “Basic earnings per share” and “Diluted earnings per share” are calculated assuming tha t the stock split had been carried out at the beginning of the previous fiscal year. 2. The dividends related to Bond-Type Class Shares are deducted in the calculation of earnings per share. (2) Consolidated financial position Total assets Total equity Equity attributable to owners of the Company Ratio of equity attributable to owners of the Company to total assets Millions of yen Millions of yen Millions of yen % As of September 30, 2025 17,579,167 4,477,563 2,909,070 16.5 As of March 31, 2025 16,102,195 4,265,371 2,743,630 17.0
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2. Dividends Dividends per share First quarter Second quarter Third quarter Fourth quarter Total Yen Yen Yen Yen Yen Fiscal year ended March 31, 2025 - 43.00 - 4.30 - Fiscal year ending March 31, 2026 - 4.30 Fiscal year ending March 31, 2026 (Forecast) - 4.30 8.60 Notes: 1. Revision to the forecast on dividends: No 2. The abovementioned “Dividends” pertain to the dividends related to common shares. Please see the following “Dividends of Bond- Type Class Shares” for information on the dividends related to Bond-Type Class Shares. 3. The Company conducted a stock split whereby each share of the Company’s common shares was split into 10 shares, with the effective date being October 1, 2024. Regarding the abovementioned amount for the fiscal year ended March 31, 2025, the second- quarter dividend per share is before the stock split while the fourth-quarter dividend per share takes the stock split into account. The total dividends per share is not stated because the amount cannot be simply combined due to the implementation of the stock split. If the stock split was not conducted, the annual dividends per share would be 86 yen. 3. Consolidated Financial Result Forecasts for the Fiscal Year Ending March 31, 2026 (Percentages are shown as year-on-year changes) Revenue Operating income Net income attributable to owners of the Company Basic earnings per share Millions of yen % Millions of yen % Millions of yen % Yen Fiscal year ending March 31, 2026 6,700,000 2.4 1,000,000 1.1 540,000 2.6 11.22 Notes: 1. Revision to the forecast on financial results: No 2. The dividends related to Bond-Type Class Shares are deducted in the calculation of earnings per share. * Notes (1) Significant changes in the scope of consolidation for the six months ended September 30, 2025: Yes Newly consolidated: Four Companies Company Names: LINE Bank Taiwan Limited, LINE MAN Corporation PTE. LTD. and its 2 subsidiaries Excluded from consolidation: One Company Company Name: Z Financial Corporation Note: For details, please refer to “(1) Significant Changes in Scope of Consolidation for the Six Months Ended September 30, 2025” under “2. Notes to Summary Information” on page 22 of the appendix to this consolidated financial report. (2) Changes in accounting policies and accounting estimates [1] Changes in accounting policies required by IFRS: No [2] Changes in accounting policies other than those in [1]: No [3] Changes in accounting estimates: No (3) Number of issued shares (common stock) [1] Number of shares issued (including treasury stock) As of September 30, 2025 47,908,265,700 shares As of March 31, 2025 47,751,490,700 shares [2] Number of shares of treasury stock As of September 30, 2025 171,342,693 shares As of March 31, 2025 184,234,180 shares [3] Average number of shares outstanding during the period Six months ended September 30, 2025 47,628,046,587 shares Six months ended September 30, 2024 47,203,391,681 shares Note: The Company conducted a stock split whereby each share of the Company’s common shares was split into 10 shares, with the effective date being October 1, 2024. “Average number of shares outstanding during the period” are calculated assuming that the stock split had been carried out at the beginning of the previous fiscal year.
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* Review of the Japanese -language originals of the attached consolidated quarterly financial statements by certified public accountants or an audit firm is not applicable. * Explanation on the proper use of the forecast on financial results and other notes This document is based on the information available to SoftBank Corp. 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, s trategies and beliefs about our business and financial prospects, are forward-looking statements. Forward-looking statements often include words such as “targets,” “plans,” “believes,” “hopes,” “continues,” “expects,” “aims,” “intends,” “will,” “may,” “shou ld,” “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 o utcome and are subject to various risks and uncertainties, including, without limitation, general economic conditions, conditions in the Japanese telecommunica tions market, our ability to adopt new technologies and business models, competition against competitors, 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 fac tors, which may cause actual results to differ materially from those expressed or implied in any forward-looking statement. SoftBank Corp. 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 rules. Use of or reliance on the information in this material is at your own risk. For assumptions underlying forecasts, notes on the use of forecasts and related matters, please see “(5) Forecasts” under “1. Results of Operations” on page 22 of the appendix to this consolidated financial report. This document is intended to disclose the Company's financial results for the six months ended September 30, 2025, and does n ot constitute a solicitation of an offer to sell or purchase any securities in Japan or any other jurisdictions. (How to obtain supplementary financial materials and information on the earnings results briefing) On Wednesday, November 5, 2025 (JST), the Company will hold an earnings results briefing online for the media, institutional investors, and financial institutions. This earnings results briefing is scheduled to be broadcast on the Company’s website in both Japanese and English at https://www.softbank.jp/en/corp/ir/documents/presentations/. The Data Sheet is also scheduled to be posted on the Company’s website concurrently with the earnings report, and the materials and videos to be used at the earnings results briefing, along with a summary of the main questions and answers, are scheduled to be posted on the Company’s website promptly after the earn ings results briefing.
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Dividends of Bond-Type Class Shares The breakdown of dividends per share related to Bond-Type Class Shares, which have different rights and relationships compared to common shares, is as follows: Series 1 Bond-Type Class Shares Dividends per share First quarter Second quarter Third quarter Fourth quarter Total Yen Yen Yen Yen Yen Fiscal year ended March 31, 2025 - 50.00 - 50.00 100.00 Fiscal year ending March 31, 2026 - 50.00 Fiscal year ending March 31, 2026 (Forecast) - - 50.00 100.00 Series 2 Bond-Type Class Shares Dividends per share First quarter Second quarter Third quarter Fourth quarter Total Yen Yen Yen Yen Yen Fiscal year ended March 31, 2025 - - - 126.24 126.24 Fiscal year ending March 31, 2026 - 128.00 Fiscal year ending March 31, 2026 (Forecast) - - 128.00 256.00 Policy on acquisition of Series 1 Bond-Type Class Shares and Series 2 Bond-Type Class Shares Based on the clause for acquisition by the Company (call option), the Company may acquire the Series 1 Bond-Type Class Shares and the Series 2 Bond -Type Class Shares in exchange for cash after the elapse of five years from the issuances, etc. We will deter mine whether to acquire (call) these Bond-Type Class Shares in exchange for cash, taking into consideration our business and financial strategy, market conditions and other factors at the time. We fully understand that, as is customary in the market for hybrid financing, many investors expect to be called when the div idend rate is stepped up.
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―1― (Appendix) Contents 1. Results of Operations ............................................................................................................................................................. p. 5 (1) Overview of Consolidated Results of Operations ............................................................................................................. p. 5 a. Management Environment and the Group’s Initiatives .................................................................................................. p. 5 b. Consolidated Results of Operations ............................................................................................................................... p. 7 c. Results by Segment ......................................................................................................................................................... p. 8 (2) Overview of Consolidated Financial Position .................................................................................................................. p. 14 (3) Overview of Consolidated Cash Flows ............................................................................................................................. p. 15 (4) Non-IFRS Financial Measures .......................................................................................................................................... p. 16 (5) Forecasts ........................................................................................................................................................................... p. 18 2. Notes to Summary Information .............................................................................................................................................. p. 18 (1) Significant Changes in Scope of Consolidation for the Six Months Ended September 30, 2025 .................................... p. 18 (2) Changes in Accounting Policies and Accounting Estimates ............................................................................................. p. 18 3. Condensed Interim Consolidated Financial Statements and Primary Notes ......................................................................... p. 19 (1) Condensed Interim Consolidated Statement of Financial Position ................................................................................... p. 19 (2) Condensed Interim Consolidated Statement of Income and Consolidated Statement of Comprehensive Income .......... p. 21 (3) Condensed Interim Consolidated Statement of Changes in Equity .................................................................................. p. 23 (4) Condensed Interim Consolidated Statement of Cash Flows ............................................................................................. p. 25 (5) Notes on Going Concern Assumption ............................................................................................................................... p. 27 (6) Notes to Condensed Interim Consolidated Financial Statements ..................................................................................... p. 27
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―2― Definition of Company Names and Abbreviations Used in this Appendix Company names and abbreviations used in this appendix, except as otherwise stated or interpreted differently in the context, are as follows: Company names / Abbreviations Definition The Company SoftBank Corp. (standalone basis) The Group SoftBank Corp. and its subsidiaries SoftBank Group Corp. SoftBank Group Corp. (standalone basis) SoftBank Group SoftBank Group Corp. and its subsidiaries LY Corporation LY Corporation (standalone basis) LY Group LY Corporation and its subsidiaries The diagram below indicates ratio of voting rights as of September 30, 2025.
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―3― Reportable Segments The Group has five reportable segments: the Consumer segment, the Enterprise segment, the Distribution segment, the Media & E C segment, and the Financial segment. The main businesses and core companies of each reportable segment are as follows: Segments Main business Core companies Reportable segments Consumer segment ・Provision of mobile services to individual customers ・Provision of broadband services ・Sale of mobile devices ・Trading and supply of electric power and provision of electric power trading agency services The Company Wireless City Planning Inc. SB Mobile Service Corp. SB Power Corp. Enterprise segment ・Provision of mobile services to enterprise customers ・Provision of fixed-line communications services, such as data communications and fixed-line telephone services ・Provision of cloud, global, AI2/IoT,3 and other solution services ・Provision of software-defined connected vehicles4 solutions ・Provision of cloud services, security operation monitoring services, and IoT solutions ・Provision of IoT, Linux/OSS, and authentication and security services The Company Wireless City Planning Inc. SB Engineering Corp. IDC Frontier Inc. eMnet Japan. co. ltd. Cubic Telecom Ltd. SB Technology Corp. Cybertrust Japan Co., Ltd. Distribution segment ・Provision of products and services addressing ICT5, cloud services, IoT solutions, and other areas for enterprise customers ・Provision of mobile and PC peripherals, including accessories, as well as software, IoT products, and other items for individual customers SB C&S Corp. Media & EC segment ・Provision of media-related services, such as media and advertising, search, marketing solutions, vertical, content, and stamps ・Provision of commerce-related services such as shopping services, including Yahoo! JAP AN Shopping and ZOZOTOWN; reuse services including Yahoo! JAP AN Auction; food delivery services and O2O services. ・Provision of AI, healthcare, and other services centered on FinTech6 LY Corporation ASKUL Corporation ZOZO, Inc. Ikyu Corporation LINE Pay Corporation LINE Pay Taiwan Limited LINE Bank Taiwan Limited7 LINE Financial Corporation LINE Plus Corporation LINE SOUTHEAST ASIA CORP .PTE.LTD. dely inc.8 LINE MAN CORPORATION PTE. LTD.9 DECACORN CO., LTD.9 LINE MAN (THAILAND) COMPANY LIMITED9 Financial segment ・Development and provision of mobile payments and other electronic payment services ・Provision of credit card business ・Banking business ・Provision of online securities brokerage service for smartphones ・Provision of payment processing services PayPay Corporation PayPay Card Corporation PayPay Bank Corporation10 PayPay Securities Corporation SB Payment Service Corp. Other ・Planning and production of digital media and digital content ・Others The Company ITmedia Inc.
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―4― Notes: 1. Segment income for reportable segments is calculated as follows: Segment income = (revenue – operating expenses (cost of sales + selling, general and administrative expenses ± other operating income and loss)) in each segment 2. AI stands for artificial intelligence. 3. IoT stands for Internet of Things, a technology that will enable communications between all manner of things via the Internet. 4. Software-defined connected vehicle is a term that describes a vehicle whose features and functions are primarily enabled through softw are connected to the Internet. Cubic Telecom Ltd.'s connectivity platform is embedded in vehicles at the point of manuf acturing, enabling OEMs to leverage software -defined technologies. 5. ICT stands for Information Communication Technology. 6. FinTech is a term coined from the combination of finance and technology and refers to a variety of innovative services tha t combine financial services with information and communication technology. 7. LY Corporation increased the capital of LINE Bank Taiwan Limited, an associate, in June 2025 through its subsidiary. As a result, LY Corporation acquired control of LINE Bank Taiwan Limited, which became its subsidiary. 8. On October 1, 2025, dely inc. changed its trade name to Kurashiru, Inc.. 9. L Y Corporation acquired additional shares and other interests in LINE MAN CORPORATION PTE. LTD., an associate, in September 2025 through its subsidiary. As a result, LY Corporation acquired control of LINE MAN CORPORATION PTE. LTD., and its subsidiaries , DECACORN CO., LTD. and LINE MAN (THAILAND) COMPANY LIMITED, became subsidiaries of L Y Corporation. 10. Following the acquisition of PayPay Bank Corporation as a subsidiary by PayPay Corporation in April 2025, from the fiscal year ending March 31, 2026, PayPay Bank Corporation, which was previously classified under the “Media & EC segment,” has been transferred to the “Financial segment.”
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―5― 1. Results of Operations (1) Overview of Consolidated Results of Operations a. Management Environment and the Group’s Initiatives Guided by its corporate philosophy of “Information Revolution—Happiness for everyone,” the Group has been undertaking a wide range of businesses in the information and technology fields. The Group has embraced the vision of becoming “a corporate group needed most by people around the world” and has been working to maximize its corporate value. Moreover, the Group has identified six material issues1 to be addressed and contributes to solving various social issues through its businesses. In the six months ended September 30, 2025, despite continued upward pressure on prices, a persistent labor shortage, and ris ing interest rates, Japan's economy remained relatively robust. However, the overall outlook has become increasingly uncertain due to factors such as a slowdown in overseas economies and higher tariffs imposed by the United States. Meanwhile, growing use of telework, online shopping, and contactless payment across society as a whole, as well as the worsening labor shortage has led to the advancement of digitalization in companies and government. Digitalization is becoming a driving force that will transform Japan’s society in the future, by facilitating improvement in productivity and the creation of innovation. Furthermore, the widespread adoption of generative AI across society, which can generate a variety of content such as text, images, and programming code, will accelerate the speed of thi s transformation. In this environment, the roles that the Group must fulfill as an operator of a wide range of businesses in the information and technology fields are growing increasingly important. In May 2023, the Company announced that it will aim to be “a company that provides Next-generation Social Infrastructure essential for development of a digital society” over the long term along with its three-year Medium-term Management Plan. With this Long-term Vision, the Group’s intention is to build infrastructure designed to meet the projected rapid increase in demand for data pro cessing and electricity brought on by the accelerated evolution of AI, and to become an indispensable company that will supp ort the future’s vast array of digital services. Under the Medium -term Management Plan, the Group’s goal is to steadily rebuild its business foundations to realize this long-term vision. By promoting the Beyond Carrier growth strategy, we are working to recover from the impact of mobile service price reduction and pursue record-high profit in terms of net income attributable to owners of the Company in the current fiscal year, which is the final year of the Plan. In May 2023, the Company announced a forecast of ¥535.0 billion in net income attributable to owners of the Company for the current fiscal year. However, backed by strong performance, the forecast was revised upward to ¥540.0 billion in May 2025. The Beyond Carrier growth strategy seeks to maximize corporate value by driving sustainable growth in the telecommunications business, the Group’s core business, while going beyond the boundaries of a telecommunications carrier to actively expand the Group’s businesses in a wide range of fields within the in formation and technology sectors. Furthermore, the Group will strengthen the competitiveness of the telecommunications business by enhancing collaboration between the telecommunications business and those Group businesses, while promoting the generation of synergies through such means as increasing the number of service users and enhancing user engagement in those Group businesses.
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―6― Awareness of Business Environment The main external environmental factors identified by the Group and its measures to address those factors are as follows: Rising interest rates The Company borrows approximately 90% of its long -term interest-bearing debt at fixed interest rates, so rising interest rates will have no immediate material effect2. Currency movements Although its currency risk exposure is limited, the Company utilizes forward foreign exchange contracts to reduce its exposure to currency risk as necessary. Major Initiatives - In August 2025, the Company revised various service fees related to its mobile and broadband services in light of recent soci al and economic conditions, including rising costs associated with high inflation. Additionally, in September 2025, the Company l aunched the Simple 3 S/M/L plans (hereinafter “Simple 3”) under the Y!mobile brand. Simple 3 is a new price plan that enhances features valued by many users, such as larger data allowances, broader benefits from ecosystem services, and overseas data servic es available at no additional charge. - In July 2025, the Company issued its first U.S. dollar-denominated senior unsecured notes in overseas markets. Prior to the issuance, the Company received credit ratings of “BBB”3 from S&P Global Ratings Japan Inc. and “BBB+” from Fitch Ratings Japan Limited, both with a “Stable” outlook. By securing funding options beyond Japan, the Company aims to implement flexible financial strategies that take into account foreign exchange and global interest rate trends, thereby improving funding cost efficiency and smoothing its repayment schedule. Notes: 1. For details on the material issues, please see the Company's website: https://www.softbank.jp/en/corp/sustainability/materiality/ 2. Long-term interest-bearing debt refers to interest -bearing debt (bank loans, bonds, lease obligations, and securitization of receivables) excluding short -term borrowings and the impact of adopting IFRS 16 "Leases." Borrowings at fixed interest rates include certain borrowings with floating interest rates for which a fixed interest expense is obtained through interest rate swap transactions and others. 3. Stand-alone credit profile (credit profile of the Company on a stand-alone basis) from S&P Global Ratings Japan Inc. is bbb+.
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―7― b. Consolidated Results of Operations (Billions of yen) Six Months Ended September 30 2024 2025 Change Change % Revenue 3,152.1 3,400.8 248.8 7.9% Operating income 585.9 628.9 43.0 7.3% Profit before income taxes 525.6 574.0 48.3 9.2% Income taxes (131.9) (98.3) 33.6 (25.5)% Net income 393.8 475.7 81.9 20.8% Net income attributable to: Owners of the Company 323.9 348.8 24.9 7.7% Non-controlling interests 69.9 127.0 57.0 81.5% Adjusted EBITDA1 936.4 965.9 29.5 3.1% Note: 1. Adjusted EBITDA = operating income + depreciation and amortization (including loss on disposal of non-current assets) + stock compensation expenses ± other adjustments. For details, refer to “(4) Non-IFRS Financial Measures.” An overview of the consolidated results of operations for the six months ended September 30, 2025 is as follows: (a) Revenue For the six months ended September 30, 2025, revenue increased by ¥248.8 billion (7.9%) year on year to ¥3,400.8 billion, mar king a record high. All reportable segments posted higher revenue, with increases of ¥75.1 billion in the Distribution segment mai nly due to solid increase in revenue from ICT related products for enterprise customers and recurring revenue products, ¥48.8 billion in the Consumer segment mainly due to increases in revenues from sales of goods and others, ¥37.1 billion in the Financial segment mainly due to an increase in gross merchandise value of QR code payments and credit card services provided by PayPay Corporation and PayPay Card Corporation, ¥36.1 billion in the Enterprise segment mainly due to an increase in demand for solutions associated with digitalization, and ¥32.8 billion in the Media & EC segment mainly due to increased commerce revenue. The progress rate against the consolida ted financial result forecast for the fiscal year ending March 31, 2026 is 50.8%, indicating steady progress. (b) Operating income For the six months ended September 30, 2025, operating income increased by ¥43.0 billion (7.3%) year on year to ¥628.9 billio n, marking a record high. All reportable segments posted higher operating income, with increases of ¥20.7 billion in the Financial segment, ¥19.2 billion in the Media & EC segment, ¥9.6 billion in the Enterprise segment, ¥8.9 billion in the Consumer segment, and ¥5.8 billion in the Distribution segment. The progress rate against the consolidated financial result forecast for the fiscal year ending March 31, 2026 is 62.9%, indicating steady progress. (c) Net income For the six months ended September 30, 2025, net income increased by ¥81.9 billion (20.8%) year on year to ¥475.7 billion, marking a record high. This is mainly due to the aforementioned increase in operating income, a decrease in income tax, and the absen ce of the negative impact of the loss on valuation of put options for equity method associates recorded in the same period of the previ ous year. The decrease in income tax is mainly due to the additional recording of deferred tax assets associated with the reassessment of the recoverability of deferred tax assets at PayPay Corporation, while there was an increase in expenses resulting from the absen ce of the deferred tax impact from business restructuring of associates recorded in the same period of the previous year. (d) Net income attributable to owners of the Company For the six months ended September 30, 2025, net income attributable to owners of the Company increased by ¥24.9 billion (7.7 %) year on year to ¥348.8 billion, marking a record high. Net income attributable to non -controlling interests increased by ¥57.0 b illion (81.5%) year on year to ¥127.0 billion, mainly due to an increase in net income at the LY Group, including PayPay Corporation . The progress rate against the consolidated financial result forecast for the fiscal year ending March 31, 2026 is 64.6%, i ndicating steady progress. (e) Adjusted EBITDA For the six months ended September 30, 2025, adjusted EBITDA increased by ¥29.5 billion (3.1%) year on year to ¥965.9 billion , marking a record high. This is mainly due to an increase in operating income.
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―8― c. Results by Segment (a) Consumer Segment OVERVIEW In the Consumer segment, the Group provides services, such as mobile services, broadband services, and electricity services, including the Ouchi Denki (Home Electricity) service, to individual customers in Japan. The Company procures mobile devices from mobile device manufacturers and sells the mobile devices to distributors operating SoftBank shops, etc. and individual customers. FINANCIAL RESULTS (Billions of yen) Six Months Ended September 30 2024 2025 Change Change % Revenue 1,426.9 1,475.7 48.8 3.4% Operating expenses1 1,104.9 1,144.8 39.9 3.6% Of which, depreciation and amortization 186.5 184.4 (2.1) (1.1)% Segment income 322.0 330.9 8.9 2.7% Note: 1. Operating expenses include cost of sales, selling, general and administrative expenses, other operating income, and other operating expenses. Breakdown of Revenue (Billions of yen) Six Months Ended September 30 2024 2025 Change Change % Service revenues 1,116.4 1,110.8 (5.6) (0.5)% Mobile 788.8 798.4 9.6 1.2% Broadband 202.9 208.1 5.2 2.6% Electricity 124.7 104.3 (20.4) (16.4)% Revenues from sales of goods and others 310.5 364.9 54.4 17.5% Total revenue 1,426.9 1,475.7 48.8 3.4% Consumer segment revenue increased by ¥48.8 billion (3.4%) year on year to ¥1,475.7 billion. Within Consumer segment revenue, service revenues decreased by ¥5.6 billion (0.5%) year on year to ¥1,110.8 billion, and revenues from sales of goods and others increased by ¥54.4 billion (17.5%) year on year to ¥364.9 billion. Within service revenues, mobile revenue increased by ¥9.6 billion (1.2%) year on year. The increase mainly reflected growth i n smartphone subscribers, led primarily by the Y!mobile brand, amid a stable trend in average revenue per user. In addition, mobile revenue (excluding the impact of customer acquisition measures) has transitioned to year-on-year growth since the three months ended December 31, 2023. (Billions of yen) Fiscal Year Ended March 31, 2025 Fiscal Year Ending March 31, 2026 Q1 Q2 Q3 Q4 Q1 Q2 Mobile revenue 392.3 396.5 388.2 397.5 397.5 400.9 Of which, the impact of customer acquisition measures1 – – (11.2) (2.0) – – Mobile revenue (excluding the impact of customer acquisition measures) 392.3 396.5 399.4 399.5 397.5 400.9 YoY change 7.6 4.5 6.3 6.4 5.2 4.4 Note: 1. Based on IFRS 15 “Revenue from Contracts with Customers”, certain customer acquisition measures are deducted from mobile revenue.
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―9― Broadband revenue increased by ¥5.2 billion (2.6%) year on year. This increase was mainly due to an increase in subscribers of the SoftBank Hikari fiber-optic service1. Electricity revenue decreased by ¥20.4 billion (16.4%) year on year. This decrease was mainly due to a decrease in transactions in the electricity market. The increase in revenues from sales of goods and others was mainly due to an increase in unit prices as well as the number of mobile devices sold. Operating expenses were ¥1,144.8 billion, an increase of ¥39.9 billion (3.6%) year on year. This increase was mainly due to increases in the cost of goods of smartphones, etc., and promotion expenses, while there was a decrease in the cost of electricity. As a result, segment income increased by ¥8.9 billion (2.7%) year on year to ¥330.9 billion. Note: 1. Includes subscribers of SoftBank Air
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―10― (b) Enterprise Segment OVERVIEW In the Enterprise segment, the Group provides a wide range of services for enterprise customers. These include mobile services such as mobile lines and mobile device rental, fixed-line communications services such as fixed-line telephones and data communications, as well as various solution services for enterprises such as data center, cloud, security, global, AI, IoT, and digital marketing services. FINANCIAL RESULTS (Billions of yen) Six Months Ended September 30 2024 2025 Change Change % Revenue 445.8 482.0 36.1 8.1% Operating expenses1 351.4 377.9 26.5 7.5% Of which, depreciation and amortization 81.6 86.7 5.1 6.2% Segment income 94.4 104.1 9.6 10.2% Note: 1. Operating expenses include cost of sales, selling, general and administrative expenses, other operating income, and other operating expenses. Breakdown of Revenue (Billions of yen) Six Months Ended September 30 2024 2025 Change Change % Mobile 156.1 167.8 11.7 7.5% Fixed-line 84.9 83.8 (1.1) (1.3)% Business solution and others 204.9 230.4 25.5 12.5% Total revenue 445.8 482.0 36.1 8.1% Enterprise segment revenue increased by ¥36.1 billion (8.1%) year on year to ¥482.0 billion. Within Enterprise segment revenue, mobile revenue increased by ¥11.7 billion (7.5%) to ¥167.8 billion, fixed-line revenue decreased by ¥1.1 billion (1.3%) to ¥83.8 billion, and business solution and others revenue increased by ¥25.5 billion (12.5%) to ¥230.4 billion. The increase in mobile revenue was mainly due to increases in telecommunications revenue from a growth in the number of mobil e service subscribers, as well as an increase in mobile device sales. The decrease in fixed-line revenue was mainly due to a decrease in the number of telephone service subscribers. The increase in business solution and others revenue was mainly due to increased revenue mainly from cloud and security solut ions as a result of capturing enterprise customers’ demand for digitalization. Operating expenses were ¥377.9 billion, an increase of ¥26.5 billion (7.5%) year on year. This increase was mainly due to an increase in costs following the abovementioned increase in business solution and others revenue. As a result, segment income increased by ¥9.6 billion (10.2%) year on year to ¥104.1 billion.
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―11― (c) Distribution Segment OVERVIEW In the Distribution segment, the Group provides cutting -edge products and services that quickly capture the ever -changing market environment. For enterprise customers, the Group offers products and services primarily addressing cloud services and advanced technologies including AI. For individual customers, the Group undertakes the planning and provision of products and services across a wide range of areas such as software, mobile accessories, and IoT products, as a manufacturer and a distributor. FINANCIAL RESULTS (Billions of yen) Six Months Ended September 30 2024 2025 Change Change % Revenue 430.7 505.8 75.1 17.4% Operating expenses1 414.5 483.8 69.4 16.7% Of which, depreciation and amortization 2.2 2.0 (0.2) (9.6)% Segment income 16.2 22.0 5.8 35.5% Note: 1. Operating expenses include cost of sales, selling, general and administrative expenses, other operating income, and other operating expenses. Distribution segment revenue increased by ¥75.1 billion (17.4%) year on year to ¥505.8 billion. This increase was mainly due to solid growth in ICT related products for enterprise customers and recurring revenue products such as cloud and SaaS, which have been strategic areas of focus, as well as increased sales of PCs due to GIGA School Program Phase 2 and migration from Windows 10, which is reaching the end of its support. Operating expenses were ¥483.8 billion, an increase of ¥69.4 billion (16.7%) year on year. This increase was mainly due to an increase in cost of sales associated with the increase in revenue. As a result, segment income increased by ¥5.8 billion (35.5%) year on year to ¥22.0 billion.
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―12― (d) Media & EC Segment OVERVIEW In the Media & EC segment, the Group offers services that center on media and commerce, covering online to offline services i n a comprehensive manner. In the media field, the Group provides advertising-related services on its comprehensive Internet service, Yahoo! JAP AN, and communication app, LINE. In the commerce field, the Group provides online shopping services such as Yahoo! JAP AN Shopping and ZOZOTOWN, and reuse services such as Yahoo! JAP AN Auction. In the strategy field, the Group provides services centered on FinTech, which the Group is working to develop into new drivers of earnings alongside media and commerce. FINANCIAL RESULTS (Billions of yen) Six Months Ended September 30 2024 2025 Change Change % Revenue 790.0 822.8 32.8 4.2% Operating expenses1 641.8 655.3 13.5 2.1% Of which, depreciation and amortization 79.1 82.2 3.1 4.0% Segment income 148.3 167.5 19.2 13.0% Note: * From the three months ended June 30, 2025, PayPay Bank Corporation, which was previously classified under the “Media & EC segment,” has been transferred to the “Financial segment.” As a result, the figures for the six months ended September 30, 2024 have been retrospectively adjusted. 1. Operating expenses include cost of sales, selling, general and administrative expenses, other operating income, and other operating expenses. Breakdown of Revenue (Billions of yen) Six Months Ended September 30 2024 2025 Change Change % Media 353.2 354.1 0.9 0.3% Commerce 409.7 431.5 21.8 5.3% Strategy 24.4 32.5 8.1 33.3% Other 2.7 4.7 2.0 71.8% Total revenue 790.0 822.8 32.8 4.2% Note: * In the three months ended December 31, 2024, the LY Group revised its management categories and transferred certain service s previously categorized under “Media” to “Commerce.” Also, from the three months ended June 30, 2025, in addition to the LY Group revising its management categories, PayPay Bank Corporation, which was previously classified under the “Media & EC segment,” has been transferred to the “Financial segment.” As a result, the revenue breakdown of all service categories in the “Media & EC segment” for the six months ended September 30, 2024 has been retrospectively adjusted. Media & EC segment revenue increased by ¥32.8 billion (4.2%) year on year to ¥822.8 billion. Within Media & EC segment revenue, media revenue increased by ¥0.9 billion (0.3%) to ¥354.1 billion, commerce revenue increased by ¥21.8 billion (5.3%) to ¥431.5 billion, strategy revenue increased by ¥8.1 billion (33.3%) to ¥32.5 billion, and other revenue increased by ¥2.0 billion (71.8%) to ¥4.7 billion. The increase in media revenue mainly reflected an increase in revenue from account advertising, despite a decrease in revenue from search advertising. The increase in commerce revenue was mainly due to an increase in transaction value of the ASKUL Group (ASKUL Corporation and its subsidiaries) and the ZOZO Group (ZOZO, Inc. and its subsidiaries), the consolidation of BEENOS Inc., as well as a st rong performance by service e-commerce, which handles travel and restaurant booking. The increase in strategy revenue mainly reflected the consolidation of LINE Bank Taiwan Limited and an increase in revenue in the FinTech field. Operating expenses were ¥655.3 billion, an increase of ¥13.5 billion (2.1%) year on year. This increase mainly reflected the absence of gain on loss of control over subsidiaries for IPX Corporation, LINE NEXT Corporation, and ValueCommerce Co., Ltd., which had been recorded in the same period of the previous year, an increase in sales promotion expenses, and the consolidation of BEEN OS Inc. and LINE Bank Taiwan Limited, while recognizing remeasurement gain on step acquisitions of LINE MAN CORPORA TION PTE. LTD. and LINE Bank Taiwan Limited. As a result, segment income increased by ¥19.2 billion (13.0%) year on year to ¥167.5 billion.
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―13― (e) Financial Segment OVERVIEW In the Financial segment, the Group provides cashless payment services such as QR code payments and credit card services, development and provision of marketing solutions for merchants, financial services such as banking business and asset management, and provision of payment processing services offering one -stop payment solutions for diversified payment methods including credit cards, electronic money, and QR codes. FINANCIAL RESULTS (Billions of yen) Six Months Ended September 30 2024 2025 Change Change % Revenue 152.6 189.7 37.1 24.3% Operating expenses1 134.8 151.2 16.4 12.2% Of which, depreciation and amortization 13.6 15.6 2.1 15.2% Segment income 17.8 38.5 20.7 116.2% Note: * From the three months ended June 30, 2025, PayPay Bank Corporation, which was previously classified under the “Media & EC segment,” has been transferred to the “Financial segment.” As a result, the figures for the six months ended September 30, 2024 have been retrospectively adjusted. 1. Operating expenses include cost of sales, selling, general and administrative expenses, other operating income, and other operating expenses. Financial segment revenue increased by ¥37.1 billion (24.3%) year on year to ¥189.7 billion. This increase was mainly due to an increase in gross merchandise value of QR code payments and credit card services provided by PayPay Corporation and PayPay Ca rd Corporation. Operating expenses were ¥151.2 billion, an increase of ¥16.4 billion (12.2%) year on year. This increase was mainly due to an increase in sales promotion expenses related to point rewards, etc., due to the aforementioned increase in gross merchandise value of QR code payments and credit card services provided by PayPay Corporation and PayPay Card Corporation. As a result, segment income increased by ¥20.7 billion (116.2%) year on year to ¥38.5 billion.
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―14― (2) Overview of Consolidated Financial Position (Billions of yen) March 31, 2025 September 30, 2025 Change Change % Current assets 4,858.7 5,308.5 449.9 9.3% Non-current assets 11,243.5 12,270.7 1,027.1 9.1% Total assets 16,102.2 17,579.2 1,477.0 9.2% Current liabilities 6,835.2 7,837.4 1,002.2 14.7% Non-current liabilities 5,001.6 5,264.2 262.5 5.2% Total liabilities 11,836.8 13,101.6 1,264.8 10.7% Total equity 4,265.4 4,477.6 212.2 5.0% (Billions of yen) Six Months Ended September 30 2024 2025 Change Capital expenditures1 359.6 358.8 (0.7) Of which, capital expenditures in the Consumer segment and Enterprise segment2 137.4 155.6 18.2 Notes: 1. Acceptance basis. 2. Capital expenditures in the Consumer segment and the Enterprise segment exclude investments in devices for rental services, shared equipment (contributions by other operators), and the impact of adopting IFRS 16 "Leases." ASSETS Total assets amounted to ¥17,579.2 billion as of September 30, 2025, an increase of ¥1,477.0 billion (9.2%) from the previous fiscal year-end. This was mainly due to an increase of ¥657.0 billion in other financial assets, ¥197.0 billion in investment securities in banking business, ¥166.3 billion in trade and other receivables, ¥135.8 billion in goodwill, and ¥95.1 billion in cash and cash equiv alents. The increase in other financial assets was mainly due to the consolidation of LINE Bank Taiwan Limited as a subsidiary. LIABILITIES Total liabilities amounted to ¥13,101.6 billion as of September 30, 2025, an increase of ¥1,264.8 billion (10.7%) from the previous fiscal year-end. This was mainly due to an increase of ¥598.6 billion in deposits for banking business and ¥506.1 billion in interest - bearing debt. The increase in deposits for banking business was mainly due to the consol idation of LINE Bank Taiwan Limited as a subsidiary. In addition, the increase in interest-bearing debt was mainly due to various fund procurement measures, including the issuance of U.S. dollar-denominated senior unsecured notes and the securitization of sales receivables. EQUITY Total equity amounted to ¥4,477.6 billion as of September 30, 2025, an increase of ¥212.2 billion (5.0%) from the previous fi scal year-end. Equity attributable to owners of the Company increased by ¥165.4 billion while non -controlling interests increased by ¥46.8 billion. The increase in equity attributable to owners of the Company mainly reflected an increase of ¥348.8 billion due to the recording of net income for the six months ended September 30, 2025, and an increase of ¥23.1 billion due to the issuanc e of new shares upon exercise of stock acquisition rights, while there was a decrease of ¥209.2 billion due to payment of cash dividends. CAPITAL EXPENDITURES In the six months ended September 30, 2025, capital expenditures were ¥358.8 billion, a decrease of ¥0.7 billion year on year . This decrease was mainly due to decreased capital expenditures by the LY Group, while there were increases in right-of-use assets associated with the signing of lease contracts for data centers and investments in devices for rental services.
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―15― (3) Overview of Consolidated Cash Flows (Billions of yen) Six Months Ended September 30 2024 2025 Change Cash flows from operating activities 709.0 574.5 (134.4) Cash flows from investing activities (502.6) (600.5) (97.9) Cash flows from financing activities (566.8) 112.3 679.1 Cash and cash equivalents at the end of the period 1,660.6 1,530.7 (130.0) Free cash flow1 206.4 (25.9) (232.3) Adjusted free cash flow (excluding LY Group, PayPay, etc.)1,2 306.5 349.5 43.0 Primary free cash flow1,3 355.2 360.1 4.9 Notes: 1. Refer to "(4) Non-IFRS Financial Measures" for calculation methods of free cash flow, adjusted free cash flow (excluding LY Group, PayPay, etc.) and primary free cash flow. 2. Adjusted free cash flow (excluding L Y Group, PayPay, etc.) = free cash flow + (proceeds from the securitization of installment sales receivables – repayments thereof) + dividends received from A Holdings Corporation – investment in PayPay Corporation + proceeds from sales of shares in PayPay Securities Corporation - free cash flow of the LY Group, PayPay, etc. + other items. "LY Group, PayPay, etc." refers to A Holdings Corporation, LY Corporation and its subsidiaries (LY Group), B Holdings Corporation, PayPay Corporation, PayPay Card Corporation, PayPay Bank Corporation, PayPay Securities Corporation, etc. 3. Primary free cash flow is a measure calculated by adding back the amounts spent as long -term growth investments to adjusted free cash flow (excluding LY Group, PayPay, etc.). Long-term growth investments include investments in AI computing infrastructure and AI data centers. a. Cash flows from operating activities In the six months ended September 30, 2025, net cash inflow from operating activities was ¥574.5 billion, a decrease of ¥134.4 billion in cash inflow year on year. This decrease mainly reflected an increase in necessary working capital such as trade receivables, payables, and inventories, as well as a decrease in income taxes refunded, while there were increases in EBITDA and deposits for banking business. b. Cash flows from investing activities In the six months ended September 30, 2025, net cash outflow from investing activities was ¥600.5 billion, an increase of ¥97.9 billion in cash outflow year on year. This increase mainly reflected an increase in payments for acquisition of investment securities in banking business and an increase in payments for obtaining control of subsidiaries, while there was a decrease in purchases of property, plant and equipment and intangible assets. Cash flows from investing activities include an expenditure of ¥10.6 billion related to long-term growth investments. c. Cash flows from financing activities In the six months ended September 30, 2025, net cash inflow from financing activities was ¥112.3 billion. There were cash inflows of ¥1,420.4 billion from fund procurement, including bank loans, leases, corporate bonds (such as U.S. dollar-denominated senior unsecured notes), and the securitization of receivables, while there were cash outflows of ¥1,308.1 billion for factors including the c ontractual repayment of loans and payment of cash dividends. d. Cash and cash equivalents at the end of the period As a result of (a) through (c) above and others, cash and cash equivalents as of September 30, 2025 were ¥1,530.7 billion, a decrease of ¥130.0 billion year on year. e. Primary free cash flow In the six months ended September 30, 2025, primary free cash flow was positive ¥360.1 billion, an increase of ¥4.9 billion y ear on year. For details, refer to "b. Free Cash Flow, Adjusted Free Cash Flow (excluding LY Group, PayPay, etc.), and Primary Free Cash Flow" under "(4) Non-IFRS Financial Measures."
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―16― (4) Non-IFRS Financial Measures The Group uses financial indicators that are not defined or recognized by IFRS. The indicators are used by management to enha nce understanding of the Group's performance and to serve as important measures for evaluating current performance. Since these measures are not defined by IFRS, they may be calculated differently or used for different purposes by other companies, which restrict s their usefulness in terms of comparability. a. Adjusted EBITDA Adjusted EBITDA is calculated by adding and subtracting "Depreciation and amortization (including loss on disposal of non- current assets)", "Stock compensation expenses" and "Other adjustments" that do not occur in normal business activities, to operating income. "Other adjustments" include "Other operating income" and "Other operating expenses" presented in the Condensed Interim Consolidated Statement of Income. The Group uses adjusted EBITDA as a measure for evaluating performance excluding the impact of non-cash transactions. The Group believes that adjusted EBITDA is a useful and necessary indicator to appropriately evaluate performance. Operating income is reconciled to adjusted EBITDA as follows. (Billions of yen) Six Months Ended September 30, 2024 Six Months Ended September 30, 2025 Operating income 585.9 628.9 (Add) Depreciation and amortization1 374.2 387.1 (Add) Stock compensation expenses 12.4 8.8 (Add (subtract)) Other adjustments: Remeasurement gain on step acquisition - (58.9) (Add (subtract)) Other adjustments: Gain relating to loss of control over subsidiaries (39.0) - (Add (subtract)) Other adjustments: Impairment loss 2.9 - Adjusted EBITDA 936.4 965.9 Note: 1. "Depreciation and amortization" in the table above includes Depreciation and amortization (¥367.3 billion for the six months ended September 30, 2024 and ¥382.2 billion for the six months ended September 30, 2025) and Loss on disposal of property, plant and equipment and intangible assets (¥7.0 billion for the six months ended September 30, 2024 and ¥4.8 billion for the six months ended September 30, 2025) stated in "3. Condensed Interim Consolidated Financial Statements and Primary Notes, (4) Condensed Interim Consolidated Statement of Cash Flows."
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―17― b. Free Cash Flow, Adjusted Free Cash Flow (excluding LY Group, PayPay, etc.), and Primary Free Cash Flow Free cash flow is a measure calculated by adding cash flows from operating activities and cash flows from investing activities. Adjusted free cash flow (excluding LY Group, PayPay, etc.) is calculated by adding the proceeds from the securitization of installment sales receivables for devices, subtracting the repayments thereof, as well as adding the dividend payments receiv ed from A Holdings Corporation, and excluding the free cash flow of LY Group, PayPay, etc. Primary free cash flow is a measure that excludes strategic investments which contribute to mid- to long-term growth, such as the construction of AI computing infrastructure, from adjusted free cash flow (excluding LY Group, PayPay, etc.). The Group believes this is a useful indicator for evaluating ongoing cash generating ability i.e., debt repayment ability and dividend paying ability, mainly in existing businesses of the Company and its wholly owned subsidiaries. On the consolidated statement of cash flows, the proceeds and repayments from the securitization of installment sales receivables are included in the cash flows from financing activities. Given that said receivables arise in the course of oper ating activities, the Group believes that an indicator that would more appropriately represent the Group's ordinary cash generating capacity would add or subtract the cash flow from the securitization of said receivables to or from the cash flows from operating activities. Therefore, in the process of calculating adjusted free cash flow (excluding LY Group, PayPay, etc.) and primary free cash flow, we add and subtract the proceeds and repayments from the securitization of installment sales receivables as adjustments to free cash flow. Adjustment items and adjustment amounts for free cash flow, adjusted free cash flow (excluding LY Group, PayPay, etc.), and primary free cash flow are as follows. (Billions of yen) Six Months Ended September 30, 2024 Six Months Ended September 30, 2025 Cash flows from operating activities 709.0 574.5 Cash flows from investing activities (capital expenditures)1 (346.8) (303.7) Cash flows from investing activities (others)2 (155.8) (296.7) Free cash flow 206.4 (25.9) Effect of securitization of installment sales receivables 25.6 168.1 Securitization of installment sales receivables: Proceeds3 210.9 377.7 Securitization of installment sales receivables: Repayments3 (185.2) (209.7) Free cash flow from LY Group, PayPay, etc.4 (13.2) 174.2 Others5 87.7 33.2 Adjusted free cash flow (excluding LY Group, PayPay, etc.) 306.5 349.5 Long-term growth investments6 (48.7) (10.6) Primary free cash flow 355.2 360.1 Notes: 1. Cash flows from investing activities (capital expenditures) is the net amount of "Purchases of property, plant and equipment and intangible assets" and "Proceeds from sales of property, plant and equipment and intangible assets" included in Cash flows from investing activities on the Condensed Interim Consolidated Statement of Cash Flows. 2. Cash flows from investing activities (others) is the net amount of "Payments for acquisition of investments," "Proceeds from sales/redemption of investments," "Purchase of investment securities in banking business," "Proceeds from sales/redemption of in vestment securities in banking business," "Proceeds from (payments for) obtaining control of subsidiaries," "Proceeds from (payments for) loss of control over subsidiaries," and "Other" included in Cash flows from investing activities on the Condensed Interim Consolidated Statement of Cash Flows. 3. Securitization of installment sales receivables: Proceeds and Securitization of installment sales receivables: Repayments are mainly included in "Increase (decrease) in short-term interest-bearing debt, net," "Proceeds from interest -bearing debt" and "R epayment of interest-bearing debt" included in Cash flows from financing activities on the Condensed Interim Consolidated Statement of Cash Flows. Proceeds and repayments of short-term installment sales receivables transactions are netted. 4. "L Y Group, PayPay, etc." refers to A Holdings Corporation, LY Corporation and its subsidiaries (LY Group), B Holdings Corporation, PayPay Corporation, PayPay Card Corporation, PayPay Bank Corporation, PayPay Securities Corporation, etc. 5. Includes items such as dividends received from A Holdings Corporation (including the dividends received from A Holdings Co rporation in connection with proceeds from its sales of L Y Corporation shares during the three months ended September 30, 2024), investment in PayPay Corporation, and proceeds from sales of shares in PayPay Securities Corporation. 6.Includes investments in AI computing infrastructure and AI data centers.
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―18― (5) Forecasts For the fiscal year ending March 31, 2026, the Company is forecasting revenue of ¥6,700.0 billion, operating income of ¥1,000.0 billion, and net income attributable to owners of the Company of ¥540.0 billion. There have been no changes to the consolidated financial result forecasts announced on May 8, 2025 in the Consolidated Financial Report for the Fiscal Year Ended March 31, 2025. 2. Notes to Summary Information (1) Significant Changes in Scope of Consolidation for the Six Months Ended September 30, 2025 (Subsidiary (four companies) newly consolidated) LY Corporation, a subsidiary of the Company, has increased the capital into LINE Bank Taiwan Limited (hereinafter “LBT”), an associate of LY Corporation, through its subsidiary, LINE Financial Taiwan Limited (hereinafter “LFT”) on June 17, 2025. As a result of this transaction, the voting rights of LFT in LBT reached 51.2%, thereby exceeding a majority. As a result, LY Corporation has acquired control over LBT, and LBT has become the Group’s subsidiary. LY Corporation, a subsidiary of the Company, has conducted a series of transactions including additional acquisitions of shares of LINE MAN CORPORATION PTE. LTD. (hereinafter “LMWN”), an associate of LY Corporation, through its subsidiary LINE SOUTHEAST ASIA CORP . PTE. LTD. As a result of these transactions, LY Corporation acquired control over LMWN, and LMWN has become the Group’s subsidiary. In addition, following the conversion of LMWN into a subsidiary, its subsidiaries, DECACORN CO., LTD and LINE MAN (THAILAND) COMPANY LIMITED, have become the Group’s subsidiaries. (Subsidiary (one company) excluded from the scope of consolidation) On August 1, 2025, LY Corporation, a subsidiary of the Company, carried out an absorption -type merger with LY Corporation as the surviving company and Z Financial Corporation as the absorbed company. Accordingly, Z Financial Corporation was excluded from the scope of consolidation. (2) Changes in Accounting Policies and Accounting Estimates There are no changes in accounting policies and accounting estimates to be disclosed.
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―19― 3. Condensed Interim Consolidated Financial Statements and Primary Notes (1) Condensed Interim Consolidated Statement of Financial Position (Millions of yen) As of March 31, 2025 As of September 30, 2025 ASSETS Current assets Cash and cash equivalents 1,435,525 1,530,663 Trade and other receivables 2,805,640 2,971,932 Other financial assets 260,236 377,545 Inventories 191,451 220,527 Other current assets 165,803 207,846 Total current assets 4,858,655 5,308,513 Non-current assets Property, plant and equipment 1,966,995 1,982,359 Right-of-use assets 749,157 757,555 Goodwill 2,068,492 2,204,277 Intangible assets 2,531,480 2,534,903 Contract costs 384,500 419,995 Investments accounted for using the equity method 273,148 219,505 Investment securities 255,068 329,218 Investment securities in banking business 747,056 944,014 Other financial assets 2,099,465 2,639,204 Deferred tax assets 65,128 128,465 Other non-current assets 103,051 111,159 Total non-current assets 11,243,540 12,270,654 Total assets 16,102,195 17,579,167
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―20― (Millions of yen) As of March 31, 2025 As of September 30, 2025 LIABILITIES AND EQUITY Current liabilities Interest-bearing debt 1,646,524 1,969,984 Trade and other payables 2,828,640 2,888,209 Contract liabilities 137,223 166,158 Deposits for banking business 1,795,965 2,394,557 Other financial liabilities 2,742 4,988 Income taxes payable 122,844 131,321 Provisions 52,932 49,337 Other current liabilities 248,336 232,885 Total current liabilities 6,835,206 7,837,439 Non-current liabilities Interest-bearing debt 4,315,628 4,498,254 Other financial liabilities 104,741 157,333 Provisions 142,392 145,166 Deferred tax liabilities 322,232 342,982 Other non-current liabilities 116,625 120,430 Total non-current liabilities 5,001,618 5,264,165 Total liabilities 11,836,824 13,101,604 Equity Equity attributable to owners of the Company Common stock 228,162 239,692 Capital surplus 927,067 926,284 Retained earnings 1,594,862 1,734,529 Treasury stock (29,221) (27,176) Accumulated other comprehensive income (loss) 22,760 35,741 Total equity attributable to owners of the Company 2,743,630 2,909,070 Non-controlling interests 1,521,741 1,568,493 Total equity 4,265,371 4,477,563 Total liabilities and equity 16,102,195 17,579,167
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―21― (2) Condensed Interim Consolidated Statement of Income and Condensed Interim Consolidated Statement of Comprehensive Income For the six months ended September 30, 2024 and 2025 Condensed Interim Consolidated Statement of Income (Millions of yen) Six months ended September 30, 2024 Six months ended September 30, 2025 Revenue 3,152,079 3,400,835 Cost of sales (1,574,416) (1,721,400) Gross profit 1,577,663 1,679,435 Selling, general and administrative expenses (1,032,097) (1,109,420) Other operating income 43,195 58,879 Other operating expenses (2,872) - Operating income 585,889 628,894 Gain on changes in equity interest 3,243 - Share of losses of associates accounted for using the equity method (4,349) (4,877) Financing income 6,659 7,776 Financing costs (70,180) (47,208) Gain on sales of equity method investments 4,379 (3,455) Impairment loss on equity method investments - (7,169) Profit before income taxes 525,641 573,961 Income taxes (131,854) (98,253) Net income1 393,787 475,708 Net income attributable to Owners of the Company 323,857 348,755 Non-controlling interests 69,930 126,953 393,787 475,708 Earnings per share attributable to owners of the Company2 Basic earnings per share (Yen) 6.83 7.22 Diluted earnings per share (Yen) 6.72 7.13 Notes: 1. All net income of SoftBank Corp. and its subsidiaries for the six months ended September 30, 2024 and 2025 were generated from continuing operations. 2. The Company conducted a stock split whereby each share of the Company’s common shares was split into 10 shares, with the effective date being October 1, 2024. “Basic earnings per share” and “Diluted earnings per share” are calculated assuming tha t the stock split had been carried out at the beginning of the previous fiscal year.
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―22― Condensed Interim Consolidated Statement of Comprehensive Income (Millions of yen) Six months ended September 30, 2024 Six months ended September 30, 2025 Net income 393,787 475,708 Other comprehensive income (loss), net of tax Items that will not be reclassified to profit or loss Remeasurements of defined benefit plan - (1,669) Changes in the fair value of equity instruments at FVTOCI (1,288) 6,352 Share of other comprehensive income (loss) of associates accounted for using the equity method 52 119 Total items that will not be reclassified to profit or loss (1,236) 4,802 Items that may be reclassified subsequently to profit or loss Changes in the fair value of debt instruments at FVTOCI (954) (28) Cash flow hedges (4,762) 1,922 Exchange differences on translation of foreign operations (12,779) 21,535 Share of other comprehensive income (loss) of associates accounted for using the equity method (6,449) (2,675) Total items that may be reclassified subsequently to profit or loss (24,944) 20,754 Total other comprehensive income (loss), net of tax (26,180) 25,556 Total comprehensive income 367,607 501,264 Total comprehensive income attributable to Owners of the Company 312,083 361,290 Non-controlling interests 55,524 139,974 367,607 501,264
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―23― (3) Condensed Interim Consolidated Statement of Changes in Equity For the six months ended September 30, 2024 (Millions of yen) Equity attributable to owners of the Company Common stock Capital surplus Retained earnings Treasury stock Accumulated other comprehen- sive income (loss) Total Non- controlling interests Total equity As of April 1, 2024 214,394 736,052 1,475,775 (75,822) 26,675 2,377,074 1,558,573 3,935,647 Comprehensive income Net income - - 323,857 - - 323,857 69,930 393,787 Other comprehensive income (loss) - - - - (11,774) (11,774) (14,406) (26,180) Total comprehensive income - - 323,857 - (11,774) 312,083 55,524 367,607 Transactions with owners and other transactions Cash dividends - - (203,707) - - (203,707) (116,001) (319,708) Issuance of new shares 8,530 8,530 - - - 17,060 - 17,060 Purchase of treasury stock - - - (0) - (0) - (0) Disposal of treasury stock - (11,607) - 26,598 - 14,991 - 14,991 Changes from business combinations - - - - - - - - Changes from loss of control - 4,831 - - - 4,831 (11,908) (7,077) Changes in interests in existing subsidiaries - (1,156) - - - (1,156) (19,087) (20,243) Share-based payment transactions - (1,481) - - - (1,481) - (1,481) Changes from put options written on non-controlling interests - - - - - - - - Transfer from accumulated other comprehensive income (loss) to retained earnings - - 396 - (396) - - - Other - (98) (23) - - (121) (199) (320) Total transactions with owners and other transactions 8,530 (981) (203,334) 26,598 (396) (169,583) (147,195) (316,778) As of September 30, 2024 222,924 735,071 1,596,298 (49,224) 14,505 2,519,574 1,466,902 3,986,476
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―24― For the six months ended September 30, 2025 (Millions of yen) Equity attributable to owners of the Company Common stock Capital surplus Retained earnings Treasury stock Accumulated other comprehen- sive income (loss) Total Non- controlling interests Total equity As of April 1, 2025 228,162 927,067 1,594,862 (29,221) 22,760 2,743,630 1,521,741 4,265,371 Comprehensive income Net income - - 348,755 - - 348,755 126,953 475,708 Other comprehensive income (loss) - - - - 12,535 12,535 13,021 25,556 Total comprehensive income - - 348,755 - 12,535 361,290 139,974 501,264 Transactions with owners and other transactions Cash dividends - - (209,195) - - (209,195) (91,787) (300,982) Issuance of new shares 11,530 11,530 - - - 23,060 - 23,060 Purchase of treasury stock - - - (0) - (0) - (0) Disposal of treasury stock - 447 - 2,045 - 2,492 - 2,492 Changes from business combinations - - - - - - 44,895 44,895 Changes from loss of control - - - - - - (414) (414) Changes in interests in existing subsidiaries - 1,285 - - - 1,285 (15,628) (14,343) Share-based payment transactions - 177 - - - 177 - 177 Changes from put options written on non-controlling interests - (13,875) - - - (13,875) (30,412) (44,287) Transfer from accumulated other comprehensive income (loss) to retained earnings - - (446) - 446 - - - Other - (347) 553 - - 206 124 330 Total transactions with owners and other transactions 11,530 (783) (209,088) 2,045 446 (195,850) (93,222) (289,072) As of September 30, 2025 239,692 926,284 1,734,529 (27,176) 35,741 2,909,070 1,568,493 4,477,563
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―25― (4) Condensed Interim Consolidated Statement of Cash Flows (Millions of yen) Six months ended September 30, 2024 Six months ended September 30, 2025 Cash flows from operating activities Net income 393,787 475,708 Depreciation and amortization 367,268 382,229 Loss on disposal of property, plant and equipment and intangible assets 6,958 4,835 Remeasurement gain on step acquisition - (58,879) Gain relating to loss of control over subsidiaries (43,195) - Financing income (6,659) (7,776) Financing costs 70,180 47,208 Share of losses of associates accounted for using the equity method 4,349 4,877 Gain on sales of equity method investments (4,379) 3,455 Impairment loss on equity method investments - 7,169 Gain on changes in equity interest (3,243) - Income taxes 131,854 98,253 (Increase) decrease in trade and other receivables 25,928 (194,270) (Increase) decrease in inventories (39,008) (28,478) Purchases of mobile devices leased to enterprise customers (23,402) (38,332) Increase (decrease) in trade and other payables (93,061) 63,166 Increase (decrease) in consumption taxes payable (2,834) 13,606 Increase (decrease) in deposits for banking business 74,752 234,123 (Increase) decrease in loans in banking business (84,556) (111,637) (Increase) decrease in investment securities in the securities business (21,873) (57,209) Other 69,116 (93,231) Subtotal 821,983 744,817 Interest and dividends received 6,715 4,872 Interest paid (40,331) (43,287) Income taxes paid (134,737) (140,222) Income taxes refunded 55,323 8,360 Net cash inflow from operating activities 708,953 574,540 Cash flows from investing activities Purchases of property, plant and equipment and intangible assets (348,924) (304,190) Proceeds from sales of property, plant and equipment and intangible assets 2,163 458 Payments for acquisition of investments (50,732) (90,702) Proceeds from sales/redemption of investments 24,220 22,512 Purchase of investment securities in banking business (165,488) (236,428) Proceeds from sales/redemption of investment securities in banking business 61,088 69,551 Proceeds from (payments for) obtaining control of subsidiaries 5,950 (55,105) Proceeds from (payments for) loss of control over subsidiaries (22,126) 65 Other (8,709) (6,624) Net cash outflow from investing activities (502,558) (600,463)
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―26― (Millions of yen) Six months ended September 30, 2024 Six months ended September 30, 2025 Cash flows from financing activities Increase (decrease) in short-term interest-bearing debt, net (74,870) 173,582 Proceeds from interest-bearing debt 1,015,267 1,174,298 Repayment of interest-bearing debt (1,182,386) (937,382) Proceeds from issuance of shares 16,243 18,770 Proceeds from stock issuance to non-controlling interests 817 53,591 Payments for purchase of treasury stock of subsidiaries (4,549) (69,794) Cash dividends paid (203,584) (209,026) Cash dividends paid to non-controlling interests (116,144) (91,869) Other (17,576) 135 Net cash inflow (outflow) from financing activities (566,782) 112,305 Effect of exchange rate changes on cash and cash equivalents (4,879) 8,756 Increase (decrease) in cash and cash equivalents relating to transfer of assets classified as held for sale 33,011 - Increase (decrease) in cash and cash equivalents (332,255) 95,138 Cash and cash equivalents at the beginning of the period 1,992,873 1,435,525 Cash and cash equivalents at the end of the period 1,660,618 1,530,663
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―27― (5) Notes on Going Concern Assumption There are no applicable items. (6) Notes to Condensed Interim Consolidated Financial Statements 1. Reporting entity SoftBank Corp. (the “Company”) is a corporation (kabushiki kaisha) under the Companies Act of Japan and is domiciled in Japan. The registered address of its head office is 7 -1 Kaigan 1 -chome, Minato-ku, Tokyo, Japan. These condensed interim consolidated financial statements are comprised of the Company and its subsidiaries (the “Group”). The parent of the Company is SoftBank Group Japan Corporation. The ultimate parent company of the Company is SoftBank Group Corp. The Group is engaged in a variety of businesses in the information and technology fields centering on its Consumer, Enterpris e, Distribution, Media & EC and Financial businesses. For details, refer to “(1) Summary of reportable segments” under “Note 6. Segment information.” 2. Changes in presentation (Condensed Interim Consolidated Statement of Cash Flows) a. “(Increase) decrease in investment securities in the securities business,” which was included in “Other” under cash flows from operating activities for the six months ended September 30, 2024, has been presented as a separate item for the six months ended September 30, 2025 as the amount became material. In order to reflect this change, reclassification has been made in the cond ensed interim consolidated financial statements for the six months ended September 30, 2024. As a result, in the condensed interim consolidated statement of cash flows for the six months ended September 30, 2024, “Othe r” of ¥47,243 million under cash flows from operating activities has been reclassified as “(Increase) decrease in investment securities in the securities business” of ¥(21,873) million and “Other” of ¥69,116 million under cash flows from operating activities. b. “Payments for purchase of treasury stock of subsidiaries,” which was included in “Other” under cash flows from financing activities for the six months ended September 30, 2024, has been presented as a separate item for the six months ended September 30, 2025 as the amount became material. In order to reflect this change, reclassification has been made in the condensed interim consolidated financial statements for the six months ended September 30, 2024. As a result, in the condensed interim consolidated statement of cash flows for the six months ended September 30, 2024, “Othe r” of ¥(22,125) million under cash flows from financing activities has been reclassified as “Payments for purchase of treasury s tock of subsidiaries” of ¥(4,549) million and “Other” of ¥(17,576) million under cash flows from financing activities. 3. Material accounting policies The material accounting policies applied in the condensed interim consolidated financial statements are consistent with those of the consolidated financial statements as of and for the fiscal year ended March 31, 2025. “Income tax expenses” for the six months ended September 30, 2025 are calculated based on the estimated annual effective income tax rate. 4. Significant judgments and estimates In preparing the condensed interim consolidated financial statements, management makes judgments, estimates, and assumptions that affect the application of accounting policies and reported amounts of assets, liabilities, revenue, and expenses. These estimates and underlying assumptions are based on management’s best judgments, through their evaluation of various factors that were considered reasonable as of the respective period-end, based on historical experience and by collecting available information. By the nature of its estimates or assumptions, however, actual results in the future may differ from those projected estimate s or assumptions. Estimates and underlying assumptions are continuously reviewed. Revisions to accounting estimates have been recognized in the period in which the estimate is revised as well as in future periods. The judgments, estimates and assumptions that have significant impact on the amounts in the condensed interim consolidated financial statements of the Group are consistent with those described in the consolidated financial statements for the fiscal year ended
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―28― March 31, 2025. 5. Business combinations Six months ended September 30, 2024 Acquisition of Cubic Telecom Ltd. (Finalization of the provisional accounting treatment for the business combination) For the fiscal year ended March 31, 2024, provisional accounting was applied to the business combination with Cubic Telecom Ltd. that took place on March 6, 2024. The allocation of the consideration transferred was completed during the three months ended June 30, 2024. There are no significant changes between the initial provisional and final amounts. Six months ended September 30, 2025 (1) Acquisition of BEENOS Inc. a. Summary of the Transactions LY Corporation, a subsidiary of the Company, commenced a tender offer for the common shares and stock acquisition rights of BEENOS Inc. (hereinafter “BEENOS”) as resolved at its Board of Directors meeting held on March 21, 2025, with the aim of enhancing corporate value through the creation of business synergies, particularly in the cross-border e-commerce business. The tender offer was completed on May 7, 2025, and LY Corporation acquired 10,918,182 common shares and stock acquisition rights (the number of shares to be issued upon exercise: 417,540) of BEENOS for a total cash consideration of ¥44,675 million. As a result, LY Corporation’s voting rights ratio in BEENOS increased to 84.08% (calculated based on the number of voting rights of issued common shares), and BEENOS has become a subsidiary of the Company. b. Summary of the acquiree Name BEENOS Inc. Business Various e-commerce businesses domestically and internationally c. Acquisition date May 7, 2025 d. Consideration and its breakdown (Millions of yen) Acquisition date (May 7, 2025) Cash paid 44,675 Total consideration A 44,675
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―29― e. The table below shows the fair value of assets and liabilities, non-controlling interests, and goodwill as of the acquisition date1: (Millions of yen) Acquisition date (May 7, 2025) Cash and cash equivalents 16,909 Trade and other receivables 2,377 Other financial assets (current) 5,225 Other current assets 2,849 Intangible assets2 11,189 Other non-current assets 3,827 Total assets 42,376 Interest-bearing debt (current) 3,229 Trade and other payables 9,249 Other current liabilities 1,703 Deferred tax liabilities 3,632 Other non-current liabilities 1,155 Total liabilities 18,968 Net assets B 23,408 Non-controlling interests3 C 3,786 Goodwill4 A-(B-C) 25,053 Notes: 1. Consideration transferred is allocated to assets acquired and liabilities assumed based on their fair value as of the acquisition date. 2. The amount of intangible assets includes ¥10,829 million of trademarks as identifiable assets with indefinite useful lives. The amount of intangible assets recognized from business combinations is measured based on assumptions such as estimated future cash flows, discount rate, future sales forecast generated by the trademarks, and royalty rate. 3. Non-controlling interests are measured at the fair values of the acquiree’s identifiable net assets as of the acquisition date, multiplied by the ratio of the non-controlling interests. 4. Goodwill reflects the ability to generate excess earnings resulting from expected future business development and synergies between the Group and the acquiree. f. The table below shows payments for obtaining control of the subsidiary: (Millions of yen) Acquisition date (May 7, 2025) Consideration paid in cash (44,675) Cash and cash equivalents held by the acquiree at the time of obtaining control 16,909 Cash paid for obtaining control of the subsidiary (27,766) g. Revenue and net income of the acquiree The revenue and net income (before elimination of intercompany transactions) of the acquiree recorded in the condensed interim consolidated statement of income on and after the acquisition date are ¥5,999 million and ¥110 million, respectively.
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―30― h. Consolidated revenue and net income on the assumption that the business combination was completed at the beginning of the year: On the assumption that the acquisition date is April 1, 2025, the Company’s consolidated pro forma financial information (unaudited) for the six months ended September 30, 2025 is as follows: (Millions of yen) Six months ended September 30, 2025 Revenue (Pro forma financial information) 3,403,913 Net income (Pro forma financial information) 475,862 (2) Conversion of LINE Bank Taiwan Limited into a subsidiary through capital increase a. Summary of the Transactions LY Corporation, a subsidiary of the Company, has decided on April 10, 2025, to increase the capital by 2.745 billion Taiwan dollars and acquire additional 274,500 thousand common shares of LINE Bank Taiwan Limited (hereinafter “LBT”), an associate of LY Corporation, through its subsidiary LINE Financial Taiwan Limited (hereinafter “LFT”). The purpose of this capital increase is to promote the banking services operated by LBT in Taiwan under the “LINE Bank” brand and to further strengthen collaboration with the Group. The capital increase was completed on June 17, 2025. Upon completion of the capital increase, the number of LBT common shares held by LFT amounted to 1,023,000 thousand shares and the voting rights of LFT in LBT reached 51.2%, thereby exceeding a majority. As a result, LY Corporation has acquired control over LBT, and LBT has become the Group’s subsidiary. b. Summary of the acquiree Name LINE Bank Taiwan Limited Business Internet-only bank c. Acquisition date June 17, 2025 d. Consideration and its breakdown (Millions of yen) Acquisition date (June 17, 2025) Fair value of LBT common shares held as of the acquisition date 36,751 Cash paid 13,478 Total consideration A 50,229 As a result of remeasurement of the Group’s previously held interests in LBT to the fair value as of the acquisition date, positive difference arising from the step acquisition of ¥14,502 million was recognized. This amount is included in “Other operating income” in the condensed interim consolidated statement of income.
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―31― e. The table below shows the fair value of assets and liabilities, non-controlling interests, and goodwill as of the acquisition date1: (Millions of yen) Acquisition date (June 17, 2025) Cash and cash equivalents 10,544 Trade and other receivables 37,941 Other financial assets (current) 43,809 Other current assets 3,540 Intangible assets 9,316 Investment securities in banking business 32,442 Other financial assets (non-current) 313,395 Other non-current assets 9,094 Total assets 460,081 Trade and other payables 2,514 Deposits for banking business 365,556 Other current liabilities 3,270 Other non-current liabilities 10,090 Total liabilities 381,430 Net assets B 78,651 Non-controlling interests2 C 38,406 Goodwill3 A-(B-C) 9,984 Notes: 1. Consideration transferred is allocated to assets acquired and liabilities assumed based on their fair value as of the acquisition date. 2. Non-controlling interests are measured at the fair values of the acquiree’s identifiable net assets as of the acquisition date, multiplied by the ratio of the non-controlling interests. 3. Goodwill reflects the ability to generate excess earnings resulting from expected future business development and synergies between the Group and the acquiree. f. The table below shows payments for obtaining control of the subsidiary: (Millions of yen) Acquisition date (June 17, 2025) Consideration paid in cash (13,478) Cash and cash equivalents held by the acquiree at the time of obtaining control 10,544 Cash paid for obtaining control of the subsidiary (2,934) g. Revenue and net income of the acquiree The revenue and net loss (before elimination of intercompany transactions) of the acquiree recorded in the condensed interim consolidated statement of income on and after the acquisition date are ¥4,706 million and ¥334 million, respectively.
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―32― h. Consolidated revenue and net income on the assumption that the business combination was completed at the beginning of the year: On the assumption that the acquisition date is April 1, 2025, the Company’s consolidated pro forma financial information (unaudited) for the six months ended September 30, 2025 is as follows: The gain on step acquisition is included in pro forma financial information. (Millions of yen) Six months ended September 30, 2025 Revenue (Pro forma financial information) 3,404,137 Net income (Pro forma financial information) 474,976 (3) Conversion of LINE MAN CORPORATION PTE. LTD. into a subsidiary a. Summary of the Transactions To further strengthen collaboration with LINE MAN CORPORATION PTE. LTD. (hereinafter “LMWN”), an equity -method associate of LY Corporation, that operates businesses such as on-demand services (primarily in food delivery) and digital solutions business for merchants in Thailand, LY Corporation, a subsidiary of the Company, resolved at the meeting of its Board of Directors held on September 11, 2025, that LY Corporation acquires a portion of LMWN shares held by Apfarm Investment Pte Ltd and Gamnat Pte. Ltd. through its subsidiary LINE SOUTHEAST ASIA CORP . PTE. LTD. (hereinafter “LSEA”), that an amendment to the shareholders’ agreement will be agreed with among LMWN’s shareholders regarding changes to each shareholder’s rights as stipulated in the shareholder s’ agreement, and that LSEA will receive a comprehensive proxy from MIRAI Fund for the future exercise of voting rights associated with LMWN shares held by MIRAI Fund, and LSEA will be authorized to exercise said voting rights. The acquisition of shares and the amendment to the shareholders’ agreement were completed on September 30, 2025. As of the completion date, LY Corporation acquired control over LMWN, and LMWN has become a subsidiary of the Group. b. Summary of the acquiree Name LINE MAN CORPORATION PTE. LTD. Business Operation of on-demand services (primarily in food delivery) and digital solutions business for merchants in Thailand, and management of group companies c. Acquisition date September 30, 2025 d. Consideration and its breakdown (Millions of yen) Acquisition date (September 30, 2025) Fair value of LMWN common shares held as of the acquisition date 63,239 Cash paid 15,327 Total consideration A 78,566 As a result of remeasurement of the Group’s previously held interests in LMWN to the fair value as of the acquisition date, positive difference arising from the step acquisition of ¥44,377 million was recognized. This amount is included in “Other operating income” in the condensed interim consolidated statement of income.
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―33― e. The table below shows the fair value of assets and liabilities, non-controlling interests, and goodwill as of the acquisition date1: (Millions of yen) Acquisition date (September 30, 2025) Cash and cash equivalents 12,542 Trade and other receivables 4,847 Other current assets 3,214 Intangible assets 4,268 Other non-current assets 3,483 Total assets 28,354 Interest-bearing debt (current) 6,703 Trade and other payables 8,207 Other current liabilities 2,731 Other non-current liabilities 3,671 Total liabilities 21,312 Net assets B 7,042 Non-controlling interests2 C 2,760 Goodwill3 A-(B-C) 74,284 Notes: 1. As the recognition of identifiable assets acquired and liabilities assumed as of the acquisition date and measurement of their fair values were not complete as of September 30, 2025, the above amounts are provisional based on the best estimate at present. Accordingly, the allocation of the consideration transferred to assets acquired, liabilities assumed and resulting goodwill may change in a year from the acquisition date when additional information related to facts and circumstances that existed as of the acquisition date are obtained and evaluated. 2. Non-controlling interests are measured at the fair values of the acquiree’s identifiable net assets as of the acquisition date, multiplied by the ratio of the non-controlling interests. 3. Goodwill reflects the ability to generate excess earnings resulting from expected future business development and synergies between the Group and the acquiree. f. The table below shows payments for obtaining control of the subsidiary: (Millions of yen) Acquisition date (September 30, 2025) Consideration paid in cash (15,327) Cash and cash equivalents held by the acquiree at the time of obtaining control 12,542 Cash paid for obtaining control of the subsidiary (2,785)
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―34― g. Consolidated revenue and net income on the assumption that the business combination was completed at the beginning of the year: On the assumption that the acquisition date is April 1, 2025, the Company’s consolidated pro forma financial information (unaudited) for the six months ended September 30, 2025 is as follows: The gain on step acquisition is included in pro forma financial information. (Millions of yen) Six months ended September 30, 2025 Revenue (Pro forma financial information) 3,439,715 Net income (Pro forma financial information) 474,746 6. Segment information (1) Summary of reportable segments The reportable segments of the Group are based on operating segments for which separate financial information is available, and which the Board of Directors (the Group’s chief operating decision maker) regularly reviews to determine the allocation of management resources and evaluate their performance. The Group has “Consumer,” “Enterprise,” “Distribut ion,” “Media & EC” and “Financial” as its reportable segments. No operating segments have been aggregated in arriving at the reportable segments of the Group. In the “Consumer” segment, the Group provides services, such as mobile services, broadband services and electricity services, including the Ouchi Denki service, mainly to individual customers in Japan. The Company procures mobile devices from mobile device manufacturers and sells the mobile devices to distributors operating SoftBank shops, etc. and individual customers. In the “Enterprise” segment, the Group provides a wide range of services for enterprise customers. These include mobile services such as mobile lines and mobile device rental, fixed -line communications services such as fixed -line telephones and data communications, as well as various solutions for enterprises such as data center, cloud, security, global, AI, IoT, and digital marketing services. In the “Distribution” segment, the Group offers products and services primarily addressing cloud services and advanced technologies including AI for enterprise customers and products and services such as software, mobile accessories, and IoT products for individual customers. In the “Media & EC” segment, the Group offers services that center on media and commerce, covering online to offline services in a comprehensive manner. In the “media” field, the Group provides advertising -related services on its comprehensive Internet service, Yahoo! JAP AN, and communication app, LINE. In the “commerce” field, the Group provides online shopping services such as Yahoo! JAP AN Shopping and ZOZOTOWN, and reuse services such as Yahoo! JAP AN Auction. In the “strategy” field, the Group provides services centered on FinTech, which the Group is working to develop into new drivers of earnings alongside media and commerce. In the “Financial” segment, the Group provides cashless payment services such as QR code payment and credit card services, development and provision of marketing solutions for merchants, financial services such as banking and asset management, as well as payment agency services that provide a comprehensive range of diversified payments such as credit cards, electronic money and QR codes. Following the intra -group reorganization effective April 11, 2025, the management business categories have been reevaluated, and PayPay Bank Corporation has been transferred from the “Media & EC” segment to the “Financial” segment. As a result, the figures for the six months ended September 30, 2024, have been retrospectively adjusted. Information not included in the preceding reportable segments is summarized in “Other.” “Adjustments” includes eliminations of intersegment transactions and expenses not allocated to any reportable segment. (2) Segment revenue, income, and other information of reportable segments Income of reportable segments is defined as “Operating income.” Intersegment transaction prices are determined by taking into consideration the equivalent prices for an arm’s length transaction or gross costs after price negotiation. Income and loss which are not attributable to operating income and loss, such as “financing income”, “financing costs”, and
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―35― “income and loss on equity method investments”, are not managed by each reportable segment and therefore these income and losses are excluded from segment income. Assets and liabilities are not allocated to reportable segments and are not monitore d by the Board of Directors. Six months ended September 30, 2024 Reportable segments (Millions of yen) Consumer Enterprise Distribution Media & EC Financial Total Other Adjustments Consolidated Revenue Sales to external customers 1,417,874 430,863 339,183 777,945 141,749 3,107,614 44,465 - 3,152,079 Intersegment revenue or transferred revenue 9,017 14,975 91,512 12,089 10,836 138,429 5,823 (144,252) - Total 1,426,891 445,838 430,695 790,034 152,585 3,246,043 50,288 (144,252) 3,152,079 Segment income 321,998 94,446 16,223 148,284 17,825 598,776 (10,420) (2,467) 585,889 Depreciation and amortization1 186,498 81,589 2,202 79,122 13,573 362,984 5,723 (1,439) 367,268 Six months ended September 30, 2025 Reportable segments (Millions of yen) Consumer Enterprise Distribution Media & EC Financial Total Other Adjustments Consolidated Revenue Sales to external customers 1,467,836 464,437 430,235 809,252 177,280 3,349,040 51,795 - 3,400,835 Intersegment revenue or transferred revenue 7,835 17,544 75,599 13,569 12,421 126,968 6,275 (133,243) - Total 1,475,671 481,981 505,834 822,821 189,701 3,476,008 58,070 (133,243) 3,400,835 Segment income 330,851 104,070 21,988 167,529 38,531 662,969 (33,517) (558) 628,894 Depreciation and amortization1 184,361 86,663 1,991 82,249 15,642 370,906 12,483 (1,160) 382,229 Notes: 1. “Depreciation and amortization” includes amortization of long-term prepaid expenses which are presented as “Other non-current assets” in the condensed interim consolidated statement of financial position. 2. The “Segment income” for “Media & EC” includes a gain on step acquisition of ¥44,377 million associated with the conversion of LINE MAN CORPORATION PTE. LTD. into a subsidiary. For details, refer to “(3) Conversion of LINE MAN CORPORATION PTE. LTD. into a subsidiary” under “Note 5. Business combinations.”
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―36― Reconciliations of “segment income” to “consolidated profit before income taxes” is as follows: (Millions of yen) Six months ended September 30, 2024 Six months ended September 30, 2025 Segment income 585,889 628,894 Gain on changes in equity interest 3,243 - Share of losses of associates accounted for using the equity method (4,349) (4,877) Financing income 6,659 7,776 Financing costs (70,180) (47,208) Gain on sales of equity method investments 4,379 (3,455) Impairment loss on equity method investments - (7,169) Profit before income taxes 525,641 573,961 7. Income taxes For the six months ended September 30, 2025, the recoverability of deferred tax assets at PayPay Corporation, a subsidiary of the Company, was reviewed, resulting in a decrease in income taxes of ¥57,535 million. 8. Interest-bearing debt The components of “interest-bearing debt” are as follows: (Millions of yen) As of March 31, 2025 As of September 30, 2025 Current Short-term borrowings 353,233 607,020 Commercial paper 108,000 129,000 Current portion of long-term borrowings 811,447 810,495 Current portion of lease liabilities 153,782 158,512 Current portion of corporate bonds 219,992 264,907 Current portion of installment payables 70 50 Total 1,646,524 1,969,984 Non-current Long-term borrowings 2,429,362 2,467,789 Lease liabilities 638,581 638,479 Corporate bonds 1,247,664 1,391,962 Installment payables 21 24 Total 4,315,628 4,498,254 9. Equity (1) Common stock and capital surplus a. Common shares Six months ended September 30, 2024 Due to the issuance of new shares upon exercise of stock acquisition rights, the number of shares issued increased by 11,737 thousand shares. As a result of the issuance of the shares, “Common stock” and “Capital surplus” increased by ¥8,530 million each under the Companies Act of Japan. The Company conducted a stock split whereby each share of the Company’s common shares was split into 10 shares, with the effective date being October 1, 2024. The number of shares stated above is based on the number of shares before the stock split. Six months ended September 30, 2025 Due to the issuance of new shares upon exercise of stock acquisition rights, the number of shares issued increased by 156,775
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―37― thousand shares. As a result of the issuance of the shares, "Common stock" and "Capital surplus" increased by ¥11,530 million each under the Companies Act of Japan. b. Class shares The Company issued Series 1 Bond -Type Class Shares with the payment date of November 1, 2023. In addition, the Company issued Series 2 Bond-Type Class Shares with the payment date of October 3, 2024. Although the Bond-Type Class Shares have a defined period for fixed dividends and any unpaid dividends shall be carried over to subsequent fiscal years, they are classified as equity instruments because the Company has the option to defer dividend payments, has no obligation to repurchase the Bond-Type Class Shares and has unconditional right to avoid delivering cash or another financial asset except for the distribution of residual assets on liquidation.
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―38― (2) Treasury stock Changes in “treasury stock” are as follows: (Thousands of shares) Six months ended September 30, 2024 Six months ended September 30, 2025 Balance at the beginning of the period 47,805 184,234 Increase during the period 0 0 Decrease during the period1 (16,770) (12,891) Balance at the end of the period 31,035 171,343 Notes: 1. For the six months ended September 30, 2024, due to the exercise of stock acquisition rights, the number of treasury stock decreased by 16,770 thousand shares. As a result, “Treasury stock” decreased by ¥26,598 million and a loss on disposal of treasury stock of ¥11,607 million was recognized as a decrease in “Capital surplus.” For the six months ended September 30, 2025, due to the exercise of stock acquisition rights, the number of treasury stock decreased by 12,891 thousand shares. As a result, “Treasury stock” decreased by ¥2,045 million and a gain on disposal of treasury stock of ¥447 million was recognized as an increase in “Capital surplus.” 2. The Company conducted a stock split whereby each share of the Company’s common shares was split into 10 shares, with the effective date being October 1, 2024. The number of shares for the six months ended September 30, 2024 and 2025, are stated based on the number of shares before the stock split and after the stock split, respectively. 10. Dividends Dividends paid are as follows: Six months ended September 30, 2024 (1) Dividends paid Resolution Class of shares Dividends per share (Yen) Total dividends (Millions of yen) Record date Effective date Board of Directors meeting held on May 17, 2024 Common stock 43.00 202,461 March 31, 2024 June 6, 2024 Board of Directors meeting held on May 17, 2024 Series 1 Bond-Type Class Shares 41.53 1,246 March 31, 2024 June 6, 2024 (2) Dividends whose record date is in the six months ended September 30, 2024 but whose effective date is after September 30, 2024 Resolution Class of shares Dividends per share (Yen) Total dividends (Millions of yen) Record date Effective date Board of Directors meeting held on October 21, 2024 Common stock 43.00 203,687 September 30, 2024 December 6, 2024 Board of Directors meeting held on October 21, 2024 Series 1 Bond-Type Class Shares 50.00 1,500 September 30, 2024 December 6, 2024 Notes: 1. The Company conducted a stock split whereby each share of the Company’s common shares was split into 10 shares, with the effective date being October 1, 2024. Dividends per share reflects the actual dividend amount before this stock split. 2. If the record date falls in a fiscal year ending on or before March 31, 2029, the annual dividend rate for the Series 1 Bo nd-Type Class Shares is 2.500% per annum. If the record date falls in a fiscal year ending on or after April 1, 2029, the annual dividend rate is the interest rate of One-Year Japanese government bonds (JGBs) as of the date two business days before the last day of the fiscal year before the fiscal year (Annual Rate Quotation Date) in which the record date falls plus 3.182%. 3. The amount of the Preferred Dividend to the Series 1 Bond -Type Class Shares with a record date of March 31, 2024 will be calculated based on actual day counts on a 366-day year basis.
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―39― Six months ended September 30, 2025 (1) Dividends paid Resolution Class of shares Dividends per share (Yen) Total dividends (Millions of yen) Record date Effective date Board of Directors meeting held on May 20, 2025 Common stock 4.30 204,539 March 31, 2025 June 12, 2025 Board of Directors meeting held on May 20, 2025 Series 1 Bond-Type Class Shares 50.00 1,500 March 31, 2025 June 12, 2025 Board of Directors meeting held on May 20, 2025 Series 2 Bond-Type Class Shares 126.24 3,156 March 31, 2025 June 12, 2025 (2) Dividends whose record date is in the six months ended September 30, 2025 but whose effective date is after September 30, 2025 Resolution Class of shares Dividends per share (Yen) Total dividends (Millions of yen) Record date Effective date Board of Directors meeting held on October 23, 2025 Common stock 4.30 205,270 September 30, 2025 December 5, 2025 Board of Directors meeting held on October 23, 2025 Series 1 Bond-Type Class Shares 50.00 1,500 September 30, 2025 December 5, 2025 Board of Directors meeting held on October 23, 2025 Series 2 Bond-Type Class Shares 128.00 3,200 September 30, 2025 December 5, 2025 Notes: 1. The Company conducted a stock split whereby each share of the Company’s common shares was split into 10 shares, with the effective date being October 1, 2024. Dividends per share reflects the actual dividend amount after this stock split. 2. If the record date falls in a fiscal year ending on or before March 31, 2029, the annual dividend rate for the Series 1 Bo nd-Type Class Shares is 2.500% per annum. If the record date falls in a fiscal year ending on or after April 1, 2029, the annual dividend rate is the interest rate of One-Year Japanese government bonds (JGBs) as of the date two business days before the last day of the fiscal year before the fiscal year (Annual Rate Quotation Date) in which the record date falls plus 3.182%. 3. If the record date falls in a fiscal year ending on or before March 31, 2030, the annual dividend rate for the Series 2 Bo nd-Type Class Shares is 3.200% per annum. If the record date falls in a fiscal year ending on or after April 1, 2030 and before Mar ch 31, 2050, the annual dividend rate is the interest rate of One-Year Japanese government bonds (JGBs) as of the Annual Rate Quotation Date with respect to the fiscal year in which the record date falls plus 2.960%. If the record date falls in a fiscal ye ar ending on or after April 1, 2050, the annual dividend rate is the interest rate of One -Year Japanese government bonds (JGBs) as of the Annual Rate Quotation Date with respect to the fiscal year in which the record date falls plus 3.710%.
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―40― 11. Revenue The components of revenue are as follows: (Millions of yen) Six months ended September 30, 2024 Six months ended September 30, 2025 Consumer Service revenues Mobile 780,086 794,770 Broadband 202,596 203,913 Electricity 124,662 104,244 Revenues from sales of goods and others 310,530 364,909 Subtotal 1,417,874 1,467,836 Enterprise Mobile3 148,803 159,592 Fixed-line 81,314 80,683 Business solution and others3 200,746 224,162 Subtotal 430,863 464,437 Distribution 339,183 430,235 Media & EC4,5,6 Media 343,373 343,565 Commerce 409,034 430,814 Strategy 24,047 31,627 Other 1,491 3,246 Subtotal 777,945 809,252 Financial5 141,749 177,280 Other 44,465 51,795 Total 3,152,079 3,400,835 Notes: 1. The components of revenue represent sales to external customers. 2. The components of revenue include revenues from other sources, excluding those arising from IFRS 15 “Revenue from Contract s with Customers” (mainly from PayPay Card Corporation’s financial business included in “Financial” and lease transactions included in “Enterprise”). Revenues from other sources for the six months ended September 30, 2024 and 2025 were ¥98,982 million and ¥114,805 million, respectively. 3. “Mobile” and “Business solution and others” under “Enterprise” include service revenues and revenues from sales of goods a nd others. Service revenues for the six months ended September 30, 2024 and 2025 were ¥271,770 million and ¥285,179 million, respectively. Revenues from sales of goods and others for the six months ended September 30, 2024 and 2025 were ¥77,778 million and ¥98,575 million, respectively. 4. Effective for the three months ended December 31, 2024, the business categories of “Media & EC” have been reevaluated and some services categorized as “Media” were transferred to “Commerce.” As a result, all components of revenue under “Media” and “Commerce” for the six months ended September 30, 2024, have been retrospectively adjusted. 5. Effective for the three months ended June 30, 2025, following the intra -group reorganization effective April 11, 2025, the management business categories have been reevaluated, and PayPay Bank Corporation has been transferred from “Media & EC” to “Financial.” As a result, revenue under “Media & EC” and “Financial” for the six months ended September 30, 2024, have been retrospectively adjusted. 6. Effective for the three months ended June 30, 2025, the business categories of “Media & EC” have been reevaluated and some services included in “Media & EC” were transferred between the business categories. As a result, all components of revenue “Media & EC” for the six months ended September 30, 2024, have been retrospectively adjusted.
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―41― 12. Earnings per share “Basic earnings per share” and “diluted earnings per share” are as follows: (1) Basic earnings per share Six months ended September 30, 2024 Six months ended September 30, 2025 Net income attributable to common shareholders of the Company (Millions of yen) Net income attributable to owners of the Company 323,857 348,755 Net income not-attributable to ordinary shareholders of the Company2 (1,500) (4,700) Net income used in the calculation of basic earnings per share 322,357 344,055 Weighted-average number of shares of common stock outstanding (Thousands of shares)1 47,203,392 47,628,047 Basic earnings per share (Yen) 6.83 7.22 (2) Diluted earnings per share Six months ended September 30, 2024 Six months ended September 30, 2025 Diluted net income attributable to common shareholders (Millions of yen) Net income used in the calculation of basic earnings per share 322,357 344,055 Effect of dilutive securities issued by subsidiaries and associates (2,133) (2,500) Total 320,224 341,555 Weighted-average number of shares of common stock used in the calculation of diluted earnings per share (Thousands of shares)1 Weighted-average number of shares of common stock outstanding 47,203,392 47,628,047 Increase in the number of shares of common stock due to stock acquisition rights 418,398 289,395 Total 47,621,790 47,917,442 Diluted earnings per share (Yen) 6.72 7.13 Notes: 1. The Company conducted a stock split whereby each share of the Company’s common shares was split into 10 shares, with the effective date being October 1, 2024. “Basic earnings per share” and “Diluted earnings per share” are calculated assuming that the stock split had been carried out at the beginning of the previous fiscal year. 2. The amount represents dividends to be paid to class shareholders in connection with the Bond-Type Class Shares.
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―42― 13. Other operating income and other operating expenses The components of “other operating income” and “other operating expenses” are as follows: (Millions of yen) Six months ended September 30, 2024 Six months ended September 30, 2025 Other operating income Remeasurement gain on step acquisition1 - 58,879 Gain relating to loss of control over subsidiaries 43,195 - Total 43,195 58,879 Other operating expenses Impairment loss (2,872) - Note: 1. Remeasurement gain on step acquisition for the six months ended September 30, 2025, includes a gain on step acquisition of ¥44,377 million associated with the conversion of LINE MAN CORPORATION PTE. LTD. into a subsidiary. For details, refer to “(3) Con version of LINE MAN CORPORATION PTE. LTD. into a subsidiary” under “Note 5. Business combinations.” 14. Supplemental information to the condensed interim consolidated statement of cash flows Significant non-cash transactions Significant non -cash transactions (investing and financing activities that do not require the use of “Cash and cash equivalents”) are as follows: Lease transactions The increases in “Right-of-use assets” on the lease transactions (excluding lease payments and initial direct costs paid before the lease commencement date) for the six months ended September 30, 2024 and 2025, were ¥97,307 million and ¥102,544 million, respectively, and are non-cash transactions. 15. Related party transactions Six months ended September 30, 2024 Related party transactions of the Group are as follows: (Millions of yen) Six months ended September 30, 2024 As of September 30, 2024 Name of the company or individual Nature of relationship Nature of transaction Amount of transaction Balance at period-end Yasuyuki Imai Director of the Company Lending of loans1,2,3 - 860 Receipt of interest on loans receivable 5 - Junichi Miyakawa Director of the Company Lending of loans1,2,3,4 - 19,930 Receipt of interest on loans receivable 110 - Kazuhiko Fujihara Director of the Company Lending of loans1,2,3 - 640 Receipt of interest on loans receivable 3 - Refund of deposits 207 - Payment of interest on deposits 0 - The terms and conditions of transactions and policy on how to determine those terms and conditions:
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―43― 1. The lending rate was set from 1.03% to 1.10% (fixed rate) as reasonably determined in consideration of the borrowing rate actually borne by the Company, which is on a level similar to market rates on similar terms, with both interest and principal repayable in one lump-sum at the end of the fiscal year five years after the loan date, allowing a five-year extension of the repayment periods subject to mutual agreement, or optional prepayment at borrower’s discretion. Borrowers are entitled to deposit the funds not exceeding the balance of this loan to the Company, in which case the interest rate applicable to such borrowings is the same as the abovementioned lending rate. 2. In this transaction, the Company’s shares purchased by the borrower using the loan have been provided as security. 3. In the event that the fair value of the security falls below a certain percentage of the loan balance prior to the due date, the Company shall be entitled to request a pledge of additional security from the borrowers. In such case, the Company shall be entitled to reserve part of the remuneration, etc. the Group will pay to the borrowers within certain limitation, and to use it for the repayment of the loan (hereinafter the “Additional Entitlement”). 4. Of the total amount due, the remaining shortfall, if any, after the enforcement of security and execution of the Additional Entitlement shall be fully guaranteed by Board Director, Mr. Masayoshi Son. Six months ended September 30, 2025 Related party transactions of the Group are as follows: (Millions of yen) Six months ended September 30, 2025 As of September 30, 2025 Name of the company or individual Nature of relationship Nature of transaction Amount of transaction Balance at period-end Yasuyuki Imai Director of the Company Lending of loans1,2,3 - 430 Receipt of interest on loans receivable 2 - Junichi Miyakawa Director of the Company Lending of loans1,2,3,4 - 19,930 Receipt of interest on loans receivable 110 - Kazuhiko Fujihara Director of the Company Collection of loans receivable1,2,3 320 - Receipt of interest on loans receivable 1 - The terms and conditions of transactions and policy on how to determine those terms and conditions: 1. The lending rate was set from 1.03% to 1.10% (fixed rate) as reasonably determined in consideration of the borrowing rate actually borne by the Company, which is on a level similar to market rates on similar terms, with both interest and principal repayable in one lump-sum at the end of the fiscal year five years after the loan date, allowing a five-year extension of the repayment period subject to mutual agreement, or optional prepayment at borrower’s discretion. Borrowers are entitled to deposit the funds not exceeding the balance of this loan to the Company, in which case the interest rate applicable to such borrowings is the same as the abovementioned lending rate. 2. In this transaction, the Company’s shares purchased by the borrower using the loan have been provided as security. 3. In the event that the fair value of the security falls below a certain percentage of the loan balance prior to the due date, the Company shall be entitled to request a pledge of additional security from the borrowers. In such case, the Company shall be entitled to reserve part of the remuneration, etc. the Group will pay to the borrowers within certain limitation, and to use it for the repayment of the loan (hereinafter the “Additional Entitlement”). 4. Of the total amount due, the remaining shortfall, if any, after the enforcement of security and execution of the Additional Entitlement shall be fully guaranteed by Board Director, Mr. Masayoshi Son. 16. Contingencies The Group is a party to several pending legal and administrative proceedings. When it is difficult to reasonably estimate the outcomes of such matters, provisions have not been recorded. Based on the information currently available, management does no t expect that the results of these pr oceedings will have a material adverse effect on the Group’s financial position or results of
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―44― operations. Regarding the following lawsuit that has been disclosed from the outset, on July 17, 2025, the Supreme Court rendered a decision to dismiss and not accept the respective final appeals and petitions for acceptance of final appeal filed by the Company and Japan Post Information Technology Co., Ltd. (“JPiT”), thereby concluding the litigation. The details of the lawsuit are as follows. a. On April 30, 2015, the Company filed a lawsuit with the Tokyo District Court against JPiT, claiming for payment of remuneration for additional services provided in connection with the installation of telecommunications lines, as well as other items, th at were ordered by JPiT in relation to a project to migrate the communications network connecting approximately 27,000 sites (post offices, etc.) countrywide to a new network, the 5th PNET. Pursuant to a contract dated February 7, 2013, the Company was requested by JPiT to carry out, among other services, installation services for telecommunications lines for Japan Post Group’s business sites existing countrywide. The Company performed such services, and upon JPiT’s request, the Company also performed services that exceeded the scope of services stipulated in the contract. Although the Company negotiated with JPiT over an extended period regarding the remuneration for these additional services, the Company and JPiT were unable to arrive at a settlement. Accordingly, the Company duly filed the lawsuit, claiming for payment of remuneration for such additional services. b. On April 30, 2015, JPiT filed a lawsuit against the Company and Nomura Research Institute, Ltd. (“NRI”) as co-defendants. In this lawsuit, JPiT alleged that the Company and NRI had delayed performance of the ordered services related to the project for migration to the 5th PNET mentioned in a. above and alleged that such delay had caused damages to JPiT. JPiT made joint and several claims against both the Company and NRI for the alleged damages. The order to consolidate lawsuit (b) above with lawsuit (a) above was made on July 29, 2015. Subsequently, on September 9, 2022, the Tokyo District Court rendered a judgment ordering JPiT to pay ¥1,921 million as remuneration for the additional services and delay damages, and the Company to pay JPiT ¥10,854 million in damages and delay damages. The Company and JPiT appealed the judgment to the Tokyo High Court, and on March 21, 2024, the Court rendered a judgment ordering JPiT to pay ¥65 million as remuneration for the additional services and delay damages and dismissing all claims by JPiT. The Company and JPiT appealed to the Supreme Court and filed a petition for acceptance of appeal with regard to the judgment. However, as described above, on July 17, 2025, the Supreme Court issued a decision to dismiss each of the Company’s and JPiT’s appeals and not to accept their respective petitions for acceptance of appeal, thereby finalizing the appellate judgment rendered on March 21, 2024, and concluding the litigation. As a result, the payment of additional service fees of ¥65 million and delay damages from JPiT to the Company was finalized, and all claims for damages filed by JPiT against the Company and NRI were dismissed.
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―45― 17. Subsequent events Unauthorized access to a subsidiary On October 19, 2025, a ransomware infection caused a system failure at ASKUL Corporation, a subsidiary of the Company. ASKUL Corporation is currently working with external experts and relevant authorities to investigate the extent of the impact , including any potential leakage of personal or customer data, and to restore the affected systems. The impact of this incident on the Group’s future business performance is currently under assessment. If the impact is determined to be material, the Company will make a prompt disclosure.