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 Three Months Ended June 30, 2026 (IFRS) August 4, 2026 (Amounts are rounded to the nearest million yen) 1. Consolidated Financial Results for the Three Months Ended June 30, 2026 (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 % Three Months Ended June 30, 2026 1,814,722 9.4 302,298 4.0 281,165 4.0 201,491 10.5 150,070 3.3 218,505 8.5 Three Months Ended June 30, 2025 1,658,615 8.0 290,734 (4.3) 270,434 (1.3) 182,300 (9.1) 145,310 (10.6) 201,419 (9.5) Basic earnings per share Diluted earnings per share Yen Yen Three Months Ended June 30, 2026 3.09 3.07 Three Months Ended June 30, 2025 3.00 2.97 Note: 1. 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 June 30, 2026 19,342,584 4,638,510 2,912,232 15.1 As of March 31, 2026 18,502,175 4,668,455 2,957,859 16.0
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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, 2026 - 4.30 - 4.30 8.60 Fiscal year ending March 31, 2027 - Fiscal year ending March 31, 2027 (Forecast) 4.40 - 4.40 8.80 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 B ond-Type Class Shares” for information on the dividends related to Bond-Type Class Shares. 3. Consolidated Financial Result Forecasts for the Fiscal Year Ending March 31, 2027 (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, 2027 7,500,000 6.6 1,100,000 5.5 560,000 1.7 11.54 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 three months ended June 30, 2026: None Newly consolidated: None Excluded from consolidation: None (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 June 30, 2026 48,017,366,700 shares As of March 31, 2026 47,971,989,700 shares [2] Number of shares of treasury stock As of June 30, 2026 170,567,818 shares As of March 31, 2026 170,724,817 shares [3] Average number of shares outstanding during the period Three months ended June 30, 2026 47,815,037,136 shares Three months ended June 30, 2025 47,592,247,916 shares
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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: Yes (voluntary). * 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 outcome 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 18 of the appendix to this consolidated financial report. (How to obtain supplementary financial materials and information on the earnings results briefing) On Tuesday, August 4, 2026 (JST), the Company will hold an earnings results briefing online for the media, institutional inve stors, 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 earnings re sults 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, 2026 - 50.00 - 50.00 100.00 Fiscal year ending March 31, 2027 - Fiscal year ending March 31, 2027 (Forecast) 50.00 - 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, 2026 - 128.00 - 128.00 256.00 Fiscal year ending March 31, 2027 - Fiscal year ending March 31, 2027 (Forecast) 128.00 - 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 dividend 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 Three Months Ended June 30, 2026 .......................................... 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 the ratio of voting rights as of June 30, 2026.
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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, enterprise network, fixed-line telephone, and other communications services to enterprise customers ・Provision of solution services, such as IoT2 and data solutions ・Provision of cloud and AI services, such as cloud, security, AI3 data centers, AI computing infrastructure, and AI solutions The Company Wireless City Planning Inc. SB Engineering Corp. eMnet Japan. co. ltd. Cubic Telecom Ltd. Cybertrust Japan Co., Ltd. IDC Frontier Inc. SB OAI Japan GK Distribution segment ・Provision of products and services addressing ICT4, 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 FinTech5 L Y Corporation ASKUL Corporation ZOZO, Inc. Ikyu Corporation LINE Pay Taiwan Limited LINE Bank Taiwan Limited LINE Financial Corporation LINE Plus Corporation LINE SOUTHEAST ASIA CORP . PTE. LTD. Kurashiru, Inc. LINE MAN CORPORA TION PTE. LTD. DECACORN CO., L TD. LINE MAN (THAILAND) COMPANY LIMITED 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 Corporation 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. IoT stands for Internet of Things, a technology that enables communications between all manner of things via the Internet. 3. AI stands for artificial intelligence. 4. ICT stands for Information Communication Technology. 5. 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.
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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 three months ended June 30, 2026, the Japanese economy remained generally robust, despite impacts such as rising prices, labor shortages, and rising interest rates. On the other hand, the outlook remains uncertain against the backdrop of factors suc h as U.S. tariff trends and increasing tensions in the Middle East. Under these business conditions, digitalization has been progressing while the utilization of AI has been expanding rapidly among companies and the government as they seek to address labor shortages and strengthen competitiveness. In particular, with the evolution and widespread adoption of AI, demand for data processing and electricity is expected to expand, and the infrastructure that supports these needs is growing increasingly important. The Group has established its Long-term Vision to be “a company that provides Next -generation Social Infrastructure essential for development of a digital society” by 2030. With this Long-term Vision, the Group’s intention is to build infrastructure designed to meet the projected rapid increase in demand for data processing and electricity brought on by the accelerated evolution of AI, and to become an indispensable company that will support the future’s vast array of digital services. In the new Medium-term Management Plan (covering the period from the fiscal year ending March 31, 2027 to the fiscal year ending March 31, 2031) announced in May 2026, the Group will aim to complete the Next -generation Social Infrastructure while promoting further business growth. Specifically, through the promotion of the new growth strategy “Activate AI for Society,” the Group aims to achieve consolidated operating income of ¥1.7 trillion and net income attributable to owners of the Company of ¥700 billion in the fiscal year ending March 31, 2031, the final year of the current plan, thereby reaching new record -high profits. The new growth strategy “Activate AI for Society” seeks to maximize corporate value by activating the potential of AI across all busin esses and driving its implementation in society. By monetizing AI infrastructure and AI services, and through the evolution and growth of all business segments through AI, the Group is driving sustainable, Group-wide business growth.
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―6― Major Initiatives - In June 2026, the Company began offering new price plans under the “SoftBank” brand, including “PayToku 2.” “PayToku 2” is a price plan that strengthens collaboration with the Group’s payment and financial services, enabling users to earn PayPay Points through both the PayPay app and “PayPay Card,” while also expanding benefits for “PayPay Card Gold” holders. The Company also began offering new services designed to make customers’ daily lives more convenient and comfortable. These include “SoftBank Starli nk Direct,” a direct-to-smartphone satellite communication service utilizing “Starlink”; “Fast Access,” which enables higher-speed 5G data communication even during times of network congestion; and “Unlimited Overseas Data,” which allows customers to use unlimited data communication² at no additional charge in more than 200 eligible countries and regions³. Furthermore, amid rising needs to invest in network expansion and development due to factors such as growing data traffic and increasingly sophisticated security risks, in addition to increases in various costs caused by recent inflation, the Company revised its existing price plans for the “SoftBank” brand from July 2026 and for the “Y!mobile” brand from June 2026, in order to continue providing stable, high-quality telecommunications services while maintaining its business foundation⁴. - In May 2026, the Company launched a Japan- based battery business aimed at building next -generation power infrastructure to support the increasing demand for electricity being driven by AI adoption. The Company will promote an end -to-end approach that encompasses development to manufacturing stages to produce innovative battery cells and Battery Energy Storage Systems (BESS) with advanced technologies. The Company plans to begin manufacturing battery cells and energy storage systems in the fiscal year e nding March 31, 2028. The Company plans to deploy these Japan-produced batteries at the AI data centers it is developing. Notes: 1. For details on the material issues, please see the Company's website: https://www.softbank.jp/en/corp/sustainability/materiality/ 2. V oice calls, SMS, and international SMS used overseas are not covered. 3. Countries and regions as of April 10, 2026. 4. The revision date for “Y!mobile” varies depending on the price plan used. Customers to whom “Simple 3 S/M/L” had been applied by June 1, 2026 are eligible to continue using the service at the same monthly fee as before the revision from June 2, 2026 through December 31, 2026, under the newly introduced “Simple 3 Special Discount.”
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―7― b. Consolidated Results of Operations (Billions of yen) Three Months Ended June 30 2025 2026 Change Change % Revenue 1,658.6 1,814.7 156.1 9.4% Operating income 290.7 302.3 11.6 4.0% Profit before income taxes 270.4 281.2 10.7 4.0% Income taxes (88.1) (79.7) 8.5 (9.6)% Net income 182.3 201.5 19.2 10.5% Net income attributable to: Owners of the Company 145.3 150.1 4.8 3.3% Non-controlling interests 37.0 51.4 14.4 39.0% Adjusted EBITDA1 471.0 508.1 37.1 7.9% 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 three months ended June 30, 2026 is as follows: (a) Revenue For the three months ended June 30, 2026, revenue increased by ¥156.1 billion (9.4%) year on year to ¥1,814.7 billion, marking a record high. All reportable segments posted higher revenue, with increases of ¥56.6 billion in the Distribution segment mainl y due to solid growth in recurring revenue products and ICT related products for enterprise customers, ¥39.9 billion in the Media & EC segment mainly due to increases in commerce revenue and strategy revenue, ¥31.9 billion in the Consumer segment mainly due to increases in electricity revenue and revenues from sales of goods and others, ¥26.6 billion in the Enterprise segment mainly due to an inc rease in demand for solutions associated with digitalization, and ¥24.6 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. (b) Operating income For the three months ended June 30, 2026, operating income increased by ¥11.6 billion (4.0%) year on year to ¥302.3 billion. Operating income decreased by ¥4.0 billion in the Media & EC segment mainly due to the absence of the remeasurement gain on step ac quisition recorded in the same period of the previous year, and by ¥0.9 billion in the Consumer segment. On the other hand, operating i ncome increased by ¥13.7 billion in the Financial segment, by ¥13.4 billion in the Enterprise segment, and by ¥1.0 billio n in the Distribution segment. (c) Net income For the three months ended June 30, 2026, net income increased by ¥19.2 billion (10.5%) year on year to ¥201.5 billion. This is mainly due to the aforementioned increase in operating income. (d) Net income attributable to owners of the Company For the three months ended June 30, 2026, net income attributable to owners of the Company increased by ¥4.8 billion (3.3%) y ear on year to ¥150.1 billion. Net income attributable to non- controlling interests increased by ¥14.4 billion (39.0%) year on year to ¥51.4 billion, mainly due to an increase in net income at the LY Group, including PayPay Corporation. (e) Adjusted EBITDA For the three months ended June 30, 2026, adjusted EBITDA increased by ¥37.1 billion (7.9%) year on year to ¥508.1 billion. This is mainly due to increases in depreciation and amortization, as well as 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) Three Months Ended June 30 2025 2026 Change Change % Revenue 717.8 749.7 31.9 4.4% Operating expenses1 564.0 596.8 32.8 5.8% Of which, depreciation and amortization 92.1 95.1 3.1 3.3% Segment income 153.8 152.9 (0.9) (0.6)% 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) Three Months Ended June 30 2025 2026 Change Change % Service revenues 543.0 564.8 21.8 4.0% Mobile 397.5 400.5 3.0 0.8% Broadband 104.2 108.8 4.6 4.4% Electricity 41.4 55.5 14.2 34.3% Revenues from sales of goods and others 174.8 184.9 10.1 5.8% Total revenue 717.8 749.7 31.9 4.4% Consumer segment revenue increased by ¥31.9 billion (4.4%) year on year to ¥749.7 billion. Within Consumer segment revenue, service revenues increased by ¥21.8 billion (4.0%) year on year to ¥564.8 billion, and revenues from sales of goods and others increased by ¥10.1 billion (5.8%) year on year to ¥184.9 billion. Within service revenues, mobile revenue increased by ¥3.0 billion (0.8%) year on year. The increase mainly reflected a rise in mobile ARPU due to increased penetration of the “PayToku” price plan under the “SoftBank” brand and revisions to price plans unde r the “Y!mobile” brand implemented in the previous fiscal year. In addition, excluding the impact of customer acquisition measures, mobile revenue for each three -month period has transitioned to year-on-year growth since the three months ended December 31, 2023. Although revenue decreased in the three months ended Marc h 31, 2026, excluding the impact of retrospective adjustments of access charges in Accounting Regulations for Interconnection, it continued to increase year on year. (Billions of yen) Fiscal Year Ended March 31, 2026 Fiscal Year Ending March 31, 2027 Q1 Q2 Q3 Q4 Q1 Mobile revenue 397.5 400.9 404.6 388.7 400.5 Of which, the impact of customer acquisition measures1 – – (2.6) (9.3) – Mobile revenue (excluding the impact of customer acquisition measures) 397.5 400.9 407.2 398.1 400.5 YoY change 5.2 4.4 7.8 (1.5) 3.0 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 ¥4.6 billion (4.4%) year on year. This increase was mainly because OpenFiber Japan Corp., a joint venture with Sony Network Communications Inc., was established and commenced operations. Electricity revenue increased by ¥14.2 billion (34.3%) year on year. This increase was mainly due to an increase in transactions in the electricity market. The increase in revenues from sales of goods and others was mainly due to an increase in average unit prices of mobile devices. Operating expenses were ¥596.8 billion, an increase of ¥32.8 billion (5.8%) year on year. This increase was mainly due to increases in the cost of electricity and amortization of capitalized sales commissions. As a result, segment income decreased by ¥0.9 billion (0.6%) year on year to ¥152.9 billion.
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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 services include communications services, such as mobile, enterprise network, and fixed-line telephone services; solution services, such as IoT and data solutions; and cloud and AI services, such as cloud, security, AI data centers, AI computing infrastructure, and AI solutions. FINANCIAL RESULTS (Billions of yen) Three Months Ended June 30 2025 2026 Change Change % Revenue 233.8 260.4 26.6 11.4% Operating expenses1 185.0 198.2 13.2 7.1% Of which, depreciation and amortization 43.3 46.0 2.7 6.2% Segment income 48.8 62.2 13.4 27.5% 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) Three Months Ended June 30 2025 2026 Change Change % Telecommunications 126.0 131.5 5.5 4.4% Solutions 49.0 51.8 2.8 5.8% Cloud & AI 58.8 77.1 18.3 31.0% Total revenue 233.8 260.4 26.6 11.4% Note: *From the three months ended June 30, 2026, the Company has revised the revenue breakdown for the “Enterprise segment,” changing the categories from “Mobile,” “Fixed-line,” and “Business solution and others” to “Telecommunications,” “Solutions,” and “Cloud & AI.” As a result, the figures for the three months ended June 30, 2025 have been retrospectively adjusted. Enterprise segment revenue increased by ¥26.6 billion (11.4%) year on year to ¥260.4 billion. Within Enterprise segment revenue, telecommunications revenue increased by ¥5.5 billion (4.4%) to ¥131.5 billion, solutions revenue increased by ¥2.8 billion (5.8%) to ¥51.8 billion, and cloud & AI revenue increased by ¥18.3 billion (31.0%) to ¥77.1 billion. The increase in telecommunications revenue was mainly due to increases in the number of mobile subscriptions and mobile devic e sales. The increase in solutions revenue was mainly due to an increase in system integration-related revenue, including sales of goods. The increase in cloud & AI revenue was mainly due to increased revenue from AI computing infrastructure and from cloud and security solutions as a result of capturing enterprise customers’ demand for digitalization. Operating expenses were ¥198.2 billion, an increase of ¥13.2 billion (7.1%) year on year. This increase was mainly due to an increase in costs following the abovementioned increases in cloud & AI revenue and solutions revenue. As a result, segment income increased by ¥13.4 billion (27.5%) year on year to ¥62.2 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 advance d 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) Three Months Ended June 30 2025 2026 Change Change % Revenue 247.9 304.5 56.6 22.8% Operating expenses1 235.9 291.6 55.6 23.6% Of which, depreciation and amortization 1.0 1.2 0.2 22.5% Segment income 11.9 12.9 1.0 8.2% 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 ¥56.6 billion (22.8%) year on year to ¥304.5 billion. This increase was mainly due to solid growth in recurring revenue products such as cloud and SaaS and ICT related products for enterprise customers, which have been strategic areas of focus. Operating expenses were ¥291.6 billion, an increase of ¥55.6 billion (23.6%) 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 ¥1.0 billion (8.2%) year on year to ¥12.9 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) Three Months Ended June 30 2025 2026 Change Change % Revenue 406.9 446.8 39.9 9.8% Operating expenses1 336.2 380.1 43.9 13.1% Of which, depreciation and amortization 40.2 46.2 6.0 15.0% Segment income 70.7 66.7 (4.0) (5.7)% 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) Three Months Ended June 30 2025 2026 Change Change % Media 176.0 180.8 4.8 2.7% Commerce 215.4 242.2 26.7 12.4% Strategy 13.5 22.0 8.5 62.9% Other 1.9 1.8 (0.1) (5.5)% Total revenue 406.9 446.8 39.9 9.8% Note: * In the three months ended June 30, 2026, the LY Group has revised its business management categories and reclassified certain services. As a result, the revenue breakdown of all service categories in the “Media & EC segment” for the three months ended June 30, 2025 has been retrospectively adjusted. Media & EC segment revenue increased by ¥39.9 billion (9.8%) year on year to ¥446.8 billion. Within Media & EC segment revenue, media revenue increased by ¥4.8 billion (2.7%) to ¥180.8 billion, commerce revenue increased by ¥26.7 billion (12.4%) to ¥242.2 billion, strategy revenue increased by ¥8.5 billion (62.9%) to ¥22.0 billion, and other revenue decreased by ¥0.1 billion (5.5%) to ¥1.8 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 the consolidation of LINE MAN CORPORATION PTE. LTD. and BEENOS Inc., as well as an increase in transaction value of the ZOZO Group (ZOZO, Inc. and its subsidiaries). The increase in strategy revenue mainly reflected the consolidation of LINE Bank Taiwan Limited. Operating expenses were ¥380.1 billion, an increase of ¥43.9 billion (13.1%) year on year. This increase mainly reflected the consolidation of LINE MAN CORPORATION PTE. LTD., LINE Bank Taiwan Limited, and BEENOS Inc., as well as the absence of the remeasurement gain on step acquisition associated with the capital increase in LINE Bank Taiwan Limited, which had been recorded in the same period of the previous year. As a result, segment income decreased by ¥4.0 billion (5.7%) year on year to ¥66.7 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 managem ent, 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) Three Months Ended June 30 2025 2026 Change Change % Revenue 91.3 115.9 24.6 27.0% Operating expenses1 73.2 84.2 10.9 14.9% Of which, depreciation and amortization 7.8 8.2 0.5 5.9% Segment income 18.1 31.8 13.7 76.0% Note: 1. Operating expenses include cost of sales, selling, general and administrative expenses, other operating income, and other operating expenses. Financial segment revenue increased by ¥24.6 billion (27.0%) year on year to ¥115.9 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 ¥84.2 billion, an increase of ¥10.9 billion (14.9%) 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 ¥13.7 billion (76.0%) year on year to ¥31.8 billion.
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―14― (2) Overview of Consolidated Financial Position (Billions of yen) March 31, 2026 June 30, 2026 Change Change % Current assets 5,405.5 5,672.8 267.3 4.9% Non-current assets 13,096.6 13,669.8 573.1 4.4% Total assets 18,502.2 19,342.6 840.4 4.5% Current liabilities 8,525.2 8,922.3 397.1 4.7% Non-current liabilities 5,308.5 5,781.8 473.3 8.9% Total liabilities 13,833.7 14,704.1 870.4 6.3% Total equity 4,668.5 4,638.5 (29.9) (0.6)% (Billions of yen) Three Months Ended June 30 2025 2026 Change Capital expenditures1 182.8 332.7 149.9 Of which, telecommunications2 82.4 84.6 2.2 Of which, AI3 3.4 10.3 6.9 Notes: 1. Acceptance basis. 2. Capital expenditures for telecommunications exclude investments in devices for rental services, shared equipment (contribu tions by other operators), and the impact of adopting IFRS 16 “Leases.” 3. Capital expenditures for AI include investments such as AI computing infrastructure and AI data centers. ASSETS Total assets amounted to ¥19,342.6 billion as of June 30, 2026, an increase of ¥840.4 billion (4.5%) from the previous fiscal year-end. This was mainly due to an increase of ¥233.5 billion in other financial assets, ¥207.0 billion in cash and cash equivalents, ¥183.3 billion in investment securities, and ¥159.0 billion in right-of-use assets. The increase in other financial assets was mainly due to an increase in loans to customers at PayPay Bank Corporation and LINE Bank Taiwan Limited. LIABILITIES Total liabilities amounted to ¥14,704.1 billion as of June 30, 2026, an increase of ¥870.4 billion (6.3%) from the previous fiscal year- end. This was mainly due to an increase of ¥936.8 billion in interest -bearing debt, while there was a decrease of ¥116.7 billion in trade and other payables. The increase in interest-bearing debt was mainly due to various fund procurement measures, including the issuance of corporate bonds and the securitization of sales receivables. EQUITY Total equity amounted to ¥4,638.5 billion as of June 30, 2026, a decrease of ¥29.9 billion (0.6%) from the previous fiscal ye ar-end. Equity attributable to owners of the Company decreased by ¥45.6 billion while non-controlling interests increased by ¥15.7 billion. The decrease in equity attributable to owners of the Company mainly reflected a decrease of ¥210.2 billion due to payment of cash dividends, while there was an increase of ¥150.1 billion due to the recording of net income for the three months ended June 30, 2026. CAPITAL EXPENDITURES In the three months ended June 30, 2026, capital expenditures were ¥332.7 billion, an increase of ¥149.9 billion year on year . This increase was mainly due to the leasing of telecommunications facilities, including dark fiber, in connection with the commen cement of operations by OpenFiber Japan Corp.
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―15― (3) Overview of Consolidated Cash Flows (Billions of yen) Three Months Ended June 30 2025 2026 Change Cash flows from operating activities 197.1 100.4 (96.7) Cash flows from investing activities (344.7) (378.0) (33.3) Cash flows from financing activities 261.1 480.2 219.2 Cash and cash equivalents at the end of the period 1,557.3 1,645.8 88.5 Free cash flow1 (147.6) (277.5) (130.0) Adjusted free cash flow (excluding LY Group, PayPay, etc.)1,2 86.3 (128.5) (214.9) Notes: 1. Refer to "(4) Non-IFRS Financial Measures" for calculation methods of free cash flow and adjusted free cash flow (excluding LY Group, PayPay, etc.). 2. Adjusted free cash flow (excluding LY Group, PayPay, etc.) = free cash flow + (proceeds from the securitization of install ment 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 adjustments. "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. a. Cash flows from operating activities In the three months ended June 30, 2026, net cash inflow from operating activities was ¥100.4 billion, a decrease of ¥96.7 bi llion in cash inflow year on year. This mainly reflected an increase in EBITDA and a decrease in working capital such as trade rece ivables, payables, and inventories, while there were increases in financial assets in the banking and securities businesses and income taxes paid. b. Cash flows from investing activities In the three months ended June 30, 2026, net cash outflow from investing activities was ¥378.0 billion, an increase of ¥33.3 billion in cash outflow year on year. This increase mainly reflected an increase in payments for acquisition of investments resulti ng from the acquisition of preferred equity in Energy Global, LP for USD 1.0 billion (approximately ¥160.0 billion), while there was an i ncrease in proceeds from sales/redemption of investment securities in banking business. c. Cash flows from financing activities In the three months ended June 30, 2026, net cash inflow from financing activities was ¥480.2 billion, an increase of ¥219.2 billion in cash inflow year on year. This increase mainly reflected an increase in fund procurement, including bank loans, corporate bonds, and the securitization of sales receivables. 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 June 30, 2026 were ¥1,645.8 billion, an increase of ¥88.5 billion year on year. e. Adjusted free cash flow (excluding LY Group, PayPay, etc.) In the three months ended June 30, 2026, adjusted free cash flow (excluding LY Group, PayPay, etc.) was negative ¥128.5 billi on, a decrease of ¥214.9 billion year on year. For details, refer to "b. Free Cash Flow, Adjusted Free Cash Flow (excluding LY Group, PayPay, etc.)" 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 Quarterly 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) Three Months Ended June 30, 2025 Three Months Ended June 30, 2026 Operating income 290.7 302.3 (Add) Depreciation and amortization1 191.3 205.5 (Add) Stock compensation expenses 3.4 2.9 (Add (subtract)) Other adjustments: Remeasurement gain on step acquisition (14.5) － (Add (subtract)) Other adjustments: Gain relating to loss of control over subsidiaries － (2.4) (Add (subtract)) Other adjustments: Other － (0.1) Adjusted EBITDA 471.0 508.1 Note: 1. "Depreciation and amortization" in the table above includes Depreciation and amortization (¥188.8 billion for the three months ended June 30, 2025 and ¥202.3 billion for the three months ended June 30, 2026) and Loss on disposal of property, plant and equipment and intangible assets (¥2.6 billion for the three months ended June 30, 2025 and ¥3.2 billion for the three months ended June 30, 2026) 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.) 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 received from A Holdings Corporation, and excluding the free cash flow of LY Group, PayPay, etc. 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.), 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 and adjusted free cash flow (excluding LY Group, PayPay, etc.) are as follows. (Billions of yen) Three Months Ended June 30, 2025 Three Months Ended June 30, 2026 Cash flows from operating activities 197.1 100.4 Cash flows from investing activities (capital expenditures)1 (144.7) (163.8) Cash flows from investing activities (others)2 (200.0) (214.2) Free cash flow (147.6) (277.5) Effect of securitization of installment sales receivables 131.3 95.4 Securitization of installment sales receivables: Proceeds3 241.9 205.0 Securitization of installment sales receivables: Repayments3 (110.6) (109.6) Free cash flow from LY Group, PayPay, etc.4 116.3 38.1 Others5 (13.7) 15.4 Adjusted free cash flow (excluding LY Group, PayPay, etc.) 86.3 (128.5) 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 investment securities in banking business," "Proceeds from (payments for) obtaining control of subsidiaries," "Proceeds from (payments for) loss of control over subsidiaries," and "Oth er" 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. "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. 5. Includes items such as dividends received from A Holdings Corporation, investment in PayPay Corporation, and proceeds from sales of shares in PayPay Securities Corporation.
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―18― (5) Forecasts For the fiscal year ending March 31, 2027, the Company is forecasting revenue of ¥7,500.0 billion, operating income of ¥1,100.0 billion, and net income attributable to owners of the Company of ¥560.0 billion. There have been no changes to the consolidated financial result forecasts announced on May 11, 2026 in the Consolidated Financial Report for the Fiscal Year Ended March 31, 2026. 2. Notes to Summary Information (1) Significant Changes in Scope of Consolidation for the Three Months Ended June 30, 2026 There are no significant changes in the scope of consolidation to be disclosed. (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, 2026 As of June 30, 2026 ASSETS Current assets Cash and cash equivalents 1,438,799 1,645,785 Trade and other receivables 3,026,078 2,959,741 Other financial assets 490,348 547,579 Inventories 232,037 245,560 Other current assets 218,269 274,164 Total current assets 5,405,531 5,672,829 Non-current assets Property, plant and equipment 2,003,769 2,009,579 Right-of-use assets 772,596 931,634 Goodwill 2,189,385 2,198,014 Intangible assets 2,576,720 2,579,622 Contract costs 440,736 440,859 Investments accounted for using the equity method 205,823 237,834 Investment securities 345,757 529,014 Investment securities in banking business 1,280,476 1,288,244 Other financial assets 3,029,086 3,205,398 Deferred tax assets 138,289 129,799 Other non-current assets 114,007 119,758 Total non-current assets 13,096,644 13,669,755 Total assets 18,502,175 19,342,584
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―20― (Millions of yen) As of March 31, 2026 As of June 30, 2026 LIABILITIES AND EQUITY Current liabilities Interest-bearing debt 1,956,418 2,461,801 Trade and other payables 3,285,304 3,168,573 Contract liabilities 169,055 188,931 Deposits for banking business 2,556,010 2,662,054 Other financial liabilities 25,422 31,683 Income taxes payable 150,880 69,699 Provisions 67,657 74,247 Other current liabilities 314,489 265,326 Total current liabilities 8,525,235 8,922,314 Non-current liabilities Interest-bearing debt 4,528,164 4,959,553 Other financial liabilities 170,165 204,556 Provisions 161,335 163,554 Deferred tax liabilities 336,189 342,281 Other non-current liabilities 112,632 111,816 Total non-current liabilities 5,308,485 5,781,760 Total liabilities 13,833,720 14,704,074 Equity Equity attributable to owners of the Company Common stock 244,355 247,699 Capital surplus 962,257 963,031 Retained earnings 1,728,300 1,667,809 Treasury stock (27,078) (27,053) Accumulated other comprehensive income (loss) 50,025 60,746 Total equity attributable to owners of the Company 2,957,859 2,912,232 Non-controlling interests 1,710,596 1,726,278 Total equity 4,668,455 4,638,510 Total liabilities and equity 18,502,175 19,342,584
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―21― (2) Condensed Interim Consolidated Statement of Income and Condensed Interim Consolidated Statement of Comprehensive Income For the three months ended June 30, 2025 and 2026 Condensed Interim Consolidated Statement of Income (Millions of yen) Three months ended June 30, 2025 Three months ended June 30, 2026 Revenue 1,658,615 1,814,722 Cost of sales (837,929) (926,009) Gross profit 820,686 888,713 Selling, general and administrative expenses (544,454) (590,154) Other operating income 14,502 3,739 Operating income 290,734 302,298 Share of losses of associates accounted for using the equity method (3,617) (1,306) Financing income 5,569 10,064 Financing costs (22,252) (29,891) Profit before income taxes 270,434 281,165 Income taxes (88,134) (79,674) Net income1 182,300 201,491 Net income attributable to Owners of the Company 145,310 150,070 Non-controlling interests 36,990 51,421 182,300 201,491 Earnings per share attributable to owners of the Company Basic earnings per share (Yen) 3.00 3.09 Diluted earnings per share (Yen) 2.97 3.07 Note: 1. All net income of SoftBank Corp. and its subsidiaries for the three months ended June 30, 2025 and 2026 were generated fro m continuing operations.
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―22― Condensed Interim Consolidated Statement of Comprehensive Income (Millions of yen) Three months ended June 30, 2025 Three months ended June 30, 2026 Net income 182,300 201,491 Other comprehensive income (loss), net of tax Items that will not be reclassified to profit or loss Remeasurements of defined benefit plan (1,647) (71) Changes in the fair value of equity instruments at FVTOCI 4,839 393 Share of other comprehensive income (loss) of associates accounted for using the equity method (10) (68) Total items that will not be reclassified to profit or loss 3,182 254 Items that may be reclassified subsequently to profit or loss Changes in the fair value of debt instruments at FVTOCI 783 (44) Cash flow hedges (1,567) 5,503 Exchange differences on translation of foreign operations 12,930 11,196 Share of other comprehensive income (loss) of associates accounted for using the equity method 3,791 105 Total items that may be reclassified subsequently to profit or loss 15,937 16,760 Total other comprehensive income (loss), net of tax 19,119 17,014 Total comprehensive income 201,419 218,505 Total comprehensive income attributable to Owners of the Company 150,675 160,593 Non-controlling interests 50,744 57,912 201,419 218,505
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―23― (3) Condensed Interim Consolidated Statement of Changes in Equity For the three months ended June 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 - - 145,310 - - 145,310 36,990 182,300 Other comprehensive income (loss) - - - - 5,365 5,365 13,754 19,119 Total comprehensive income - - 145,310 - 5,365 150,675 50,744 201,419 Transactions with owners and other transactions Cash dividends - - (209,195) - - (209,195) (43,966) (253,161) Issuance of new shares 4,599 4,599 - - - 9,198 - 9,198 Purchase of treasury stock - - - (0) - (0) - (0) Disposal of treasury stock - - - - - - - - Changes from business combinations - - - - - - 42,135 42,135 Changes from loss of control - - - - - - 984 984 Changes in interests in existing subsidiaries - 6,649 - - - 6,649 14,611 21,260 Share-based payment transactions - 495 - - - 495 - 495 Transfer from accumulated other comprehensive income (loss) to retained earnings - - (775) - 775 - - - Other - (322) 253 - - (69) (437) (506) Total transactions with owners and other transactions 4,599 11,421 (209,717) (0) 775 (192,922) 13,327 (179,595) As of June 30, 2025 232,761 938,488 1,530,455 (29,221) 28,900 2,701,383 1,585,812 4,287,195
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―24― For the three months ended June 30, 2026 (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, 2026 244,355 962,257 1,728,300 (27,078) 50,025 2,957,859 1,710,596 4,668,455 Comprehensive income Net income - - 150,070 - - 150,070 51,421 201,491 Other comprehensive income (loss) - - - - 10,523 10,523 6,491 17,014 Total comprehensive income - - 150,070 - 10,523 160,593 57,912 218,505 Transactions with owners and other transactions Cash dividends - - (210,245) - - (210,245) (45,497) (255,742) Issuance of new shares 3,344 3,344 - - - 6,688 - 6,688 Purchase of treasury stock - - - (0) - (0) - (0) Disposal of treasury stock - (3) - 25 - 22 - 22 Changes from business combinations - - - - - - - - Changes from loss of control - - - - - - (1,281) (1,281) Changes in interests in existing subsidiaries - (3,071) - - - (3,071) 4,522 1,451 Share-based payment transactions - 518 - - - 518 - 518 Transfer from accumulated other comprehensive income (loss) to retained earnings - - (198) - 198 - - - Other - (14) (118) - - (132) 26 (106) Total transactions with owners and other transactions 3,344 774 (210,561) 25 198 (206,220) (42,230) (248,450) As of June 30, 2026 247,699 963,031 1,667,809 (27,053) 60,746 2,912,232 1,726,278 4,638,510
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―25― (4) Condensed Interim Consolidated Statement of Cash Flows (Millions of yen) Three months ended June 30, 2025 Three months ended June 30, 2026 Cash flows from operating activities Net income 182,300 201,491 Depreciation and amortization 188,753 202,334 Loss on disposal of property, plant and equipment and intangible assets 2,585 3,176 Remeasurement gain on step acquisition (14,502) - Gain relating to loss of control over subsidiaries - (2,424) Financing income (5,569) (10,064) Financing costs 22,252 29,891 Share of losses of associates accounted for using the equity method 3,617 1,306 Income taxes 88,134 79,674 (Increase) decrease in trade and other receivables 27,611 44,239 (Increase) decrease in inventories (21,822) (13,738) Purchases of mobile devices leased to enterprise customers (20,843) (15,986) Increase (decrease) in trade and other payables (148,955) (110,474) Increase (decrease) in consumption taxes payable 8,976 (9,571) Increase (decrease) in deposits for banking business 161,220 94,586 (Increase) decrease in loans in banking business (42,620) (110,020) (Increase) decrease in investment securities in securities business (24,629) (54,838) Other (61,406) (52,238) Subtotal 345,102 277,344 Interest and dividends received 1,826 5,412 Interest paid (19,705) (27,148) Income taxes paid (130,308) (155,466) Income taxes refunded 205 280 Net cash inflow from operating activities 197,120 100,422 Cash flows from investing activities Purchases of property, plant and equipment and intangible assets (145,028) (164,356) Proceeds from sales of property, plant and equipment and intangible assets 315 604 Payments for acquisition of investments (68,757) (222,987) Proceeds from sales/redemption of investments 12,950 17,217 Purchase of investment securities in banking business (116,305) (130,071) Proceeds from sales/redemption of investment securities in banking business 27,364 124,408 Proceeds from (payments for) obtaining control of subsidiaries (52,100) (6,360) Proceeds from (payments for) loss of control over subsidiaries (2) (762) Other (3,111) 4,354 Net cash outflow from investing activities (344,674) (377,953)
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―26― (Millions of yen) Three months ended June 30, 2025 Three months ended June 30, 2026 Cash flows from financing activities Increase (decrease) in short-term interest-bearing debt, net 373,276 370,937 Proceeds from interest-bearing debt 463,044 653,331 Repayment of interest-bearing debt (354,093) (303,045) Proceeds from issuance of shares 9,452 5,618 Proceeds from stock issuance to non-controlling interests 52,891 14,587 Cash dividends paid (201,593) (204,071) Cash dividends paid to non-controlling interests (51,687) (43,795) Other (30,211) (13,316) Net cash inflow (outflow) from financing activities 261,079 480,246 Effect of exchange rate changes on cash and cash equivalents 8,210 4,271 Increase (decrease) in cash and cash equivalents 121,735 206,986 Cash and cash equivalents at the beginning of the period 1,435,525 1,438,799 Cash and cash equivalents at the end of the period 1,557,260 1,645,785
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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. Basis of preparation of condensed interim consolidated financial statements (1) Compliance with standards The condensed interim consolidated financial statements of the Group have been prepared in accordance with Article 5, Paragraph 2 of the standards for preparation of quarterly financial statements, etc. of Tokyo Stock Exchange, Inc. A part of the disclosur es required under International Accounting Standard 34, “Interim Financial Reporting” of IFRS Accounting Standards (“IFRS”) is omitted under Article 5, Paragraph 5 of the said preparation standards. (2) Changes in Presentation (Condensed Interim Consolidated Statement of Cash Flows) “(Increase) decrease in investment securities in securities business,” which was included in “Other” under cash flows from operating activities for the three months ended June 30, 2025, has been presented as a separate item for the three months ended June 30, 2026 as the amount became material. In order to reflect this change, reclassification has been made in the condensed interim consolidated financial statements for the three months ended June 30, 2025. As a result, in the condensed interim consolidated statement of cash flows for the three months ended June 30, 2025, “Other” of ¥(86,035) million under cash flows from operating activities has been reclassified as “(Increase) decrease in investment securit ies in securities business” of ¥(24,629) million and “Other” of ¥(61,406) million under cash flows from operating activities.
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―28― 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, 2026. “ Income tax expenses” for the three months ended June 30, 2026 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 March 31, 2026. 5. Business combinations Three months ended June 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 on the settlement completion date of May 14, 2025, 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 14, 2025 d. Consideration and its breakdown (Millions of yen) Acquisition date (May 14, 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 14, 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 14, 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 ¥1,631 million and ¥221 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 three months ended June 30, 2025 is as follows: (Millions of yen) Three months ended June 30, 2025 Revenue (Pro forma financial information) 1,661,693 Net income (Pro forma financial information) 182,454 (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, a gain on 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 income of the acquiree on and after the acquisition date have been omitted as the impact is immaterial.
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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 three months ended June 30, 2025 is as follows: The gain on step acquisition is included in the pro forma financial information. (Millions of yen) Three months ended June 30, 2025 Revenue (Pro forma financial information) 1,661,918 Net income (Pro forma financial information) 181,568 Three months ended June 30, 2026 There are no significant business combinations to be disclosed.
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―33― 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,” “Distribution,” “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 telecommunications services such as mobile, enterprise networks and fixed-line telephones, solution services such as IoT and data solutions, as well as cloud and AI services such as cloud, security, AI data centers, AI computing infrastructure and AI solutions. From the three months ended June 30, 2026, the Group revised the management categories for the components of revenue in the Enterprise s egment, changing the previous categories of “Mobile,” “Fixed-line,” and “Business solution and others” to “Telecommunications,” “Solutions,” and “Cloud & AI.” 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. 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.
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―34― (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 “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 monitored by the Board of Directors. Three months ended June 30, 2025 Reportable segments (Millions of yen) Consumer Enterprise Distribution Media & EC Financial Total Other Adjustments Consolidated Revenue Sales to external customers 713,939 225,988 208,936 400,477 84,923 1,634,263 24,352 - 1,658,615 Intersegment revenue or transferred revenue 3,857 7,813 38,948 6,388 6,367 63,373 2,981 (66,354) - Total 717,796 233,801 247,884 406,865 91,290 1,697,636 27,333 (66,354) 1,658,615 Segment income 153,814 48,795 11,944 70,700 18,050 303,303 (12,431) (138) 290,734 Depreciation and amortization1 92,058 43,341 974 40,210 7,776 184,359 4,975 (581) 188,753 Three months ended June 30, 2026 Reportable segments (Millions of yen) Consumer Enterprise Distribution Media & EC Financial Total Other Adjustments Consolidated Revenue Sales to external customers 745,435 244,395 251,423 440,990 107,659 1,789,902 24,820 - 1,814,722 Intersegment revenue or transferred revenue 4,284 16,026 53,074 5,810 8,250 87,444 3,656 (91,100) - Total 749,719 260,421 304,497 446,800 115,909 1,877,346 28,476 (91,100) 1,814,722 Segment income 152,919 62,229 12,919 66,699 31,759 326,525 (23,530) (697) 302,298 Depreciation and amortization1 95,121 46,026 1,193 46,246 8,232 196,818 6,793 (1,277) 202,334 Note: 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. Reconciliations of “segment income” to “consolidated profit before income taxes” is as follows: (Millions of yen) Three months ended June 30, 2025 Three months ended June 30, 2026 Segment income 290,734 302,298 Share of losses of associates accounted for using the equity method (3,617) (1,306) Financing income 5,569 10,064 Financing costs (22,252) (29,891) Profit before income taxes 270,434 281,165
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―35― 7. Interest-bearing debt The components of “interest-bearing debt” are as follows: (Millions of yen) As of March 31, 2026 As of June 30, 2026 Current Short-term borrowings 625,819 969,746 Commercial paper 73,000 122,000 Current portion of long-term borrowings 863,753 888,657 Current portion of lease liabilities 163,863 191,588 Current portion of corporate bonds 229,958 289,790 Current portion of installment payables 25 20 Total 1,956,418 2,461,801 Non-current Long-term borrowings 2,474,053 2,577,562 Lease liabilities 649,770 783,843 Corporate bonds 1,404,325 1,598,137 Installment payables 16 11 Total 4,528,164 4,959,553 8. Equity (1) Common stock and capital surplus a. Common shares Three months ended June 30, 2025 For the three months ended June 30, 2025, due to the issuance of new shares upon exercise of stock acquisition rights, the number of shares issued increased by 62,791 thousand shares. As a result of the issuance of the shares, “Common stock” and “Capital surplus” increased by ¥4,599 million each under the Companies Act of Japan. Three months ended June 30, 2026 For the three months ended June 30, 2026, due to the issuance of new shares upon exercise of stock acquisition rights, the number of shares issued increased by 45,377 thousand shares. As a result of the issuance of the shares, “Common stock” and “Capital surplus” increased by ¥3,344 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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―36― (2) Treasury stock Changes in “treasury stock” are as follows: (Thousands of shares) Three months ended June 30, 2025 Three months ended June 30, 2026 Balance at the beginning of the period 184,234 170,725 Increase during the period 0 0 Decrease during the period1 - (157) Balance at the end of the period 184,234 170,568 Note: 1. For the three months ended June 30, 2026, due to the exercise of stock acquisition rights, the number of treasury stock decreased by 157 thousand shares. As a result, “Treasury stock” decreased by ¥25 million and a loss on disposal of treasury stock of ¥3 million was recognized as a decrease in “Capital surplus.”
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―37― 9. Dividends Dividends paid are as follows: Three months ended June 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 May 20, 2025 Common stock 4.30 204,539 March 31, 2025 June 12, 2025 Board of Directors meeting held on May 20, 20251 Series 1 Bond-Type Class Shares 50.00 1,500 March 31, 2025 June 12, 2025 Board of Directors meeting held on May 20, 20252 Series 2 Bond-Type Class Shares 126.24 3,156 March 31, 2025 June 12, 2025 Three months ended June 30, 2026 Resolution Class of shares Dividends per share (Yen) Total dividends (Millions of yen) Record date Effective date Board of Directors meeting held on May 15, 2026 Common stock 4.30 205,547 March 31, 2026 June 2, 2026 Board of Directors meeting held on May 15, 20261 Series 1 Bond-Type Class Shares 50.00 1,500 March 31, 2026 June 2, 2026 Board of Directors meeting held on May 15, 20262 Series 2 Bond-Type Class Shares 128.00 3,200 March 31, 2026 June 2, 2026 Notes: 1. If the record date falls in a fiscal year ending on or before March 31, 2029, the annual dividend rate for the Series 1 Bond-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%. 2. If the record date falls in a fiscal year ending on or before March 31, 2030, the annual dividend rate for the Series 2 Bond-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 March 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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―38― 10. Revenue The components of revenue are as follows: (Millions of yen) Three months ended June 30, 2025 Three months ended June 30, 2026 Consumer Service revenues Mobile 395,063 397,818 Broadband 102,728 107,183 Electricity 41,340 55,519 Revenues from sales of goods and others 174,808 184,915 Subtotal 713,939 745,435 Enterprise3,4 Telecommunications 120,640 129,043 Solutions 47,607 49,826 Cloud & AI 57,741 65,526 Subtotal 225,988 244,395 Distribution 208,936 251,423 Media & EC5 Media 171,073 176,350 Commerce 215,222 241,954 Strategy 13,395 21,247 Other 787 1,439 Subtotal 400,477 440,990 Financial 84,923 107,659 Other 24,352 24,820 Total 1,658,615 1,814,722 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 three months ended June 30, 2025 and 2026 were ¥55,355 million and ¥72,681 million, respectively. 3. “Enterprise” include service revenues and revenues from sales of goods and others. Service revenues for the three months e nded June 30, 2025 and 2026 were ¥180,353 million and ¥189,797 million, respectively. Revenues from sales of goods and others for the three months ended June 30, 2025 and 2026 were ¥45,635 million and ¥54,598 million, respectively. 4. Effective for the three months ended June 30, 2026, the business categories of “Enterprise” have been reevaluated and the previous categories of “Mobile,” “Fixed-line,” and “Business solution and others,” have been changed to “Telecommunications,” “Solutions,” and “Cloud & AI”, respectively. As a result, revenue under “Enterprise” for the three months ended June 30, 2025, have been retrospectively adjusted. 5. Effective for the three months ended June 30, 2026, 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 under “Media & EC” for the three months ended June 30, 2025, have been retrospectively adjusted.
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―39― 11. Earnings per share Basic earnings per share and diluted earnings per share are as follows: (1) Basic earnings per share Three months ended June 30, 2025 Three months ended June 30, 2026 Net income attributable to common shareholders of the Company (Millions of yen) Net income attributable to owners of the Company 145,310 150,070 Net income not-attributable to common shareholders of the Company1 (2,350) (2,350) Net income used in the calculation of basic earnings per share 142,960 147,720 Weighted-average number of shares of common stock outstanding (Thousands of shares) 47,592,248 47,815,037 Basic earnings per share (Yen) 3.00 3.09 (2) Diluted earnings per share Three months ended June 30, 2025 Three months ended June 30, 2026 Diluted net income attributable to common shareholders (Millions of yen) Net income used in the calculation of basic earnings per share 142,960 147,720 Effect of dilutive securities issued by subsidiaries and associates (690) (149) Total 142,270 147,571 Weighted-average number of shares of common stock used in the calculation of diluted earnings per share (Thousands of shares) Weighted-average number of shares of common stock outstanding 47,592,248 47,815,037 Increase in the number of shares of common stock due to stock acquisition rights 263,361 194,921 Total 47,855,609 48,009,958 Diluted earnings per share (Yen) 2.97 3.07 Note: 1. The amount represents dividends to be paid to class shareholders in connection with the Bond-Type Class Shares.
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―40― 12. Other operating income The components of “other operating income” are as follows: (Millions of yen) Three months ended June 30, 2025 Three months ended June 30, 2026 Other operating income Remeasurement gain on step acquisition 14,502 - Gain relating to loss of control over subsidiaries - 2,424 Other - 1,315 Total 14,502 3,739 13. 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 three months ended June 30, 2025 and 2026, were ¥61,425 million and ¥216,174 million, respectively, and are non- cash transactions. The increase in right -of-use assets for the three months ended June 30, 2026 includes ¥122,336 million due to the leasing of telecommunications facilities, including dark fiber, by OpenFiber Japan Corp., a subsidiary of the Company.
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―41― 14. Related party transactions Three months ended June 30, 2025 Related party transactions of the Group are as follows: (Millions of yen) Three months ended June 30, 2025 As of June 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 1 1 Junichi Miyakawa Director of the Company Lending of loans1,2,3,4 - 19,930 Receipt of interest on loans receivable 55 55 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 deposits 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.
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―42― Three months ended June 30, 2026 Related party transactions of the Group are as follows: (Millions of yen) Three months ended June 30, 2026 As of June 30, 2026 Name of the company or individual Nature of relationship Nature of transaction Amount of transaction Balance at period-end Junichi Miyakawa Director of the Company Lending of loans1,2,3,4 - 19,930 Receipt of interest on loans receivable 55 55 The terms and conditions of transactions and policy on how to determine those terms and conditions: 1. The lending rate was set at 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 deposits 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. 15. Subsequent events (1) Transfer of Preferred Equity Interests in Energy Global, LP On July 10, 2026, the Company resolved to transfer all preferred equity interests in Energy Global, LP held by Takeshiba US Holdings 1 LLC, a subsidiary of the Company, to SVF II Energy (DE) LLC. In accordance with this resolution, on the same date, the subsidiary entered into an equity transfer agreement and completed the transfer of the interests. SVF II Energy (DE) LLC is a subsidiary of SoftBank Group Corp., the parent of the Company, and is a related party of the Company. a. Description of transferred assets Series D Preferred Equity Interests of Energy Global, LP b. Execution date of equity interest transfer July 10, 2026 c. Impact on financial results The base transfer price for this transaction is USD 1.5 billion. However, as the final transfer price will be determined by reflecting the price adjustment stipulated in the equity transfer agreement based on valuations calculated by independent third-part y institutions, the amount of the gain or loss arising from the transfer is currently undetermined.
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―43― (2) Capital and Business Alliance Aimed at Building a Medium- to Long-term Strategic Partnership with Seven & i Holdings Co., Ltd. On July 31, 2026, the Company, together with its subsidiaries PayPay Corporation (hereinafter “PayPay”) and LY Corporation, entered into a business alliance agreement with Seven & i Holdings Co., Ltd. (hereinafter “Seven & i”) and SEVEN-ELEVEN JAPAN CO., LTD. (hereinafter “Seven-Eleven Japan”) for the purpose of building a strategic partnership in the digital field (hereinafter the “Business Alliance”). On the same date, the Company and PayPay entered into a capital alliance agreement with Seven & i (hereinafter the “Capital Alliance”), and decided to subscribe to the disposal of treasury shares (hereinafter the “Treasury Shares Disposal”) through a third-party allotment to be conducted by Seven & i based on the Capital Alliance. a. Details of the Business Alliance Through the Business Alliance, the Company aims to optimize store management operations and achieve labor-saving by utilizing its technologies including AI and promoting DX, while accelerating data -driven store operations including customer traffic analysi s and supply chain demand forecasting, thereby creating new social value and business opportunities. In addition, PayPay aims t o promote the integration of 7iD into PayPay user accounts, the introduction of PayPay Points, contract development of the Seve n- Eleven app, collaboration on promotional initiatives, and the mutual utilization of data held by each company, with the goal of enhancing the customer experience at Seven- Eleven and expanding opportunities to use the digital financial platform centered on PayPay payments. b. Details of the Capital Alliance (a) Execution date July 31, 2026 (b) Counterparty Seven & i Holdings Co., Ltd. (c) Method of acquisition Subscription to the disposal of treasury shares through a third-party allotment (d) Payment date August 17, 2026 (planned) (e) Class of shares to be acquired Common stock (f) Acquisition cost ¥200.0 billion (Breakdown: the Company: ¥100.0 billion, PayPay: ¥100.0 billion) (g) Acquisition price per share ¥2,070 per share (h) Number of shares to be acquired 96,618,356 shares (Breakdown: the Company: 48,309,178 shares, PayPay: 48,309,178 shares) (Ratio of ownership to the total number of issued shares (excluding treasury stock): 4.26%) The Treasury Shares Disposal is conditional upon the satisfaction of prescribed conditions precedent, including the effectiveness of the securities registration statement to be filed by Seven & i. c. Impact on financial results The impact of the Capital and Business Alliance on the Group’s performance is currently under assessment.