Management Policy and Priority Issues to Address

Guided by our corporate philosophy, “Information Revolution—Happiness for everyone,” we aim to maximize corporate value while being a corporate group that provides essential technologies and services to people around the world.

Under our management system, SoftBank Group Corp. (“SBG”), a strategic investment holding company, exercises overall control over our subsidiaries, associates, and investees as our investment portfolio. Based on this system, we aim to maximize NAV (Net Asset Value: calculated as equity value of holdings – adjusted net interest-bearing debt^*1) by increasing the equity value of our holdings over the medium to long term. Our financial policy, designed to support this objective, ensures financial stability by managing SBG’s LTV (Loan-to-Value: calculated as adjusted net interest-bearing debt ÷ equity value of holdings,^*1 i.e., the ratio of liabilities to holding assets) below 25% under normal market conditions, with an upper threshold of 35% even in extraordinary circumstances. Concurrently, we ensure that SBG has secured a cash position sufficient to cover bond redemptions for at least the next two years.

We aim to seize the significant opportunities presented by the Information Revolution, where IT transforms societies and lifestyles, thereby contributing to the well-being of all people over the long term. To achieve this, it is imperative for us to promptly identify changes in social needs and continuously transform ourselves, optimizing the structure of our group to maximize the benefits from the technologies and business models driving the future.

The core of the Information Revolution has evolved over time—from personal computers to the internet, broadband, and smartphones—and is now transitioning to artificial intelligence (AI). In particular, recent advancements in generative AI have expanded beyond natural language processing and creative content generation into areas such as software development, business process automation, and robotics, bringing about major transformation across industries. We firmly believe that AI will continue to evolve toward more advanced reasoning capabilities, autonomy, and versatility, ultimately leading to the realization of Artificial Super Intelligence (ASI), which surpasses the collective intelligence of humanity.

Amid this epoch-defining shift, we have positioned the realization of ASI as our mission in pursuit of advancing human progress and are undergoing a new phase of self-transformation. Specifically, we are actively investing and operating across key domains, including AI models, AI chips, AI infrastructure (such as AI data centers and the power required to support them), and physical AI. Through these efforts, we aim to capture growth opportunities with certainty. Under our unique “Cluster of No. 1 Strategy,” we seek to drive mutual reinforcement among our group companies and portfolio investees—enabling each to expand their operations and evolve their business models—thereby increasing our equity value of holdings and, ultimately, maximizing NAV over the medium to long term.

The adoption and evolution of AI, which accelerated globally following OpenAI’s release of the interactive generative AI service ChatGPT in November 2022, advanced further during fiscal 2025. AI is increasingly being used across a broad range of digital domains, including software development, customer support, data analysis, and business process automation. At the same time, its applications are rapidly expanding into automation and autonomy in the physical world, including robotics and autonomous driving.

Against this backdrop, competition to improve the performance of AI models has intensified further. Companies such as OpenAI, which has led the development and adoption of generative AI, Anthropic PBC, which has strengths in advanced reasoning capabilities and commitment to AI safety, and Google LLC, which has a robust computing infrastructure and ecosystem, are competing fiercely. As generative AI becomes more sophisticated and demand for practical application (inference) increases sharply, competition in the AI sector is expanding across all layers of infrastructure underpinning AI’s evolution, including AI chips responsible for computational processing, AI infrastructure required to operate them at scale, and physical AI, which serves as an embodiment of AI.

In addition, as AI-related investments become larger in scale, it is increasingly important to procure the necessary capital in an agile manner to seize investment opportunities as they arise. The spread of AI must also proceed in a manner that fosters societal trust in AI and ensures social and environmental sustainability. Accordingly, initiatives for “responsible AI” have become an important priority for companies that develop, provide, and utilize AI.

In this business environment, we are focusing on the following three key priorities to advance our medium- to long-term strategies: “Strategic investments to accelerate AI evolution and value creation across the portfolio,” “Adhering to financial policy,” and “Promoting sustainability.”

AI models are systems at the core of AI that learn from vast amounts of data to generate text, images, audio, and other content, respond to questions, and analyze and reason through complex problems. Improvements in AI model performance are driving innovation across industries.

OpenAI, in which we have invested, is an AI model development company that pioneered generative AI under its mission to “ensure that artificial general intelligence (AGI) benefits all of humanity.” Through ChatGPT and APIs (application programming interfaces that enable the integration of AI capabilities into external services), OpenAI has developed a broad business serving a wide customer base, ranging from individual users to enterprises. In addition to continuous improvements in model performance, advances in multimodal capabilities—supporting multiple formats such as text, audio, and images—have enabled high real-world applicability across a wide range of use cases, including text generation, software development, and data analysis. OpenAI’s user base has expanded rapidly, with the number of weekly active users^*2 of ChatGPT increasing from 500 million in March 2025 to over 900 million in February 2026, nearly doubling in less than a year.

OpenAI combines its outstanding technological capabilities with a large and rapidly growing user base. As AI is becoming a decisive force shaping the future, we are convinced that OpenAI will continue to be a central player in the AI industry. Based on this belief, we have made follow-on investments in OpenAI since its initial investment in September 2024, with the cumulative investment totaling USD 34.6 billion as of the end of fiscal 2025. In February 2026, we further committed to an additional investment of USD 30.0 billion, to be made in three tranches in 2026, and executed the first tranche of USD 10.0 billion in April 2026. Through these investments, we are supporting the acceleration of OpenAI’s research and development and the expansion of its ecosystem (comprising services and companies that utilize its AI models), while strengthening our long-term partnership with OpenAI.

AI chips are a broad category of semiconductors designed to process AI training and inference workloads with high speed and efficiency, and they represent one of the core foundational technologies underpinning the advancement of AI. As AI shifts from training-centric workloads toward large-scale inference—particularly with the emergence of agentic AI systems that coordinate multiple models and tasks—the role of the CPU has become increasingly critical. CPUs are essential for system orchestration, data movement, and managing complex, heterogeneous workloads, complementing GPUs and other accelerators that handle parallel computation.

A key player in this domain is Arm, SBG’s subsidiary. Arm is a global leader in compute platforms centered on semiconductor IP, with a CPU architecture that combines high performance with industry-leading power efficiency. Through its latest-generation Armv9 architecture, which enhances support for AI workloads, and its Compute Subsystems, Arm enables partners to rapidly develop and deploy high-performance, power-efficient AI chips.

In March 2026, Arm announced the Arm AGI CPU, a CPU chip designed for AI data centers. This represents an expansion of Arm’s platform capabilities into proprietary silicon and an important step in the evolution of its compute platform. The chip is designed to address growing data center CPU demand driven by the scaling of AI inference and the proliferation of agentic AI systems. In addition to high processing performance, it emphasizes scalability for large-scale AI data centers, as well as efficiency in power consumption and cost. Meta Platforms, Inc. is a co-development partner and plans broad deployment across its data centers.

We are confident that Arm will become a central provider of the computational foundation upon which the AI era is built. With this conviction, we position Arm as a core subsidiary in advancing its medium- to long-term strategy, and intend to lead the evolution of AI computing infrastructure with Arm.

As AI models become more advanced and demand for inference expands, the development and provision of AI data centers and power have become critical elements that will determine the growth of the AI industry as a whole. Even as AI models and AI chips continue to advance, the expansion of AI usage will be limited unless AI infrastructure that can operate them stably and at scale is secured. In light of this, we position AI infrastructure as one of the key domains supporting the evolution of AI.

In January 2025, SBG jointly announced the “Stargate Project” with OpenAI and other partners to build new AI infrastructure in the U.S. in support of OpenAI’s operations. As part of this project, in January 2026, SBG’s subsidiary Energy Global entered into a strategic partnership with OpenAI and is advancing the construction of data center buildings pre-fitted with power and network connectivity infrastructure (powered shells) for a 1.2 GW-scale AI data center project in Milam County, Texas.

In March 2026, the U.S. Department of Energy (DOE) and the U.S. Department of Commerce (DOC), together with SBG, Energy Global, and AEP Ohio (a regional electric utility subsidiary of American Electric Power Company, Inc., a leading U.S. power company), announced a public-private partnership project to develop 10 GW-scale power generation and a 10 GW-scale AI data center at the PORTS Technology Campus in Piketon, Ohio. Of this project, the plan to develop 9.2 GW-scale power generation facilities is one of the projects covered under the “Strategic Investment Initiative,” a USD 550 billion framework based on an agreement between the governments of Japan and the U.S.

Furthermore, in May 2026, SBG announced its commitment to develop and operate 5GW-scale AI data center capacity in France. The initiative is aimed at expanding access to high-performance compute capacity in France in support of the rapidly growing AI sector, and SBG will advance this project in collaboration with Energy Global and other strategic partners.

Given that these projects require substantial funding, we will steadily advance the development of the infrastructure that supports the expansion of AI usage while limiting our own capital burden by utilizing external financing.

Physical AI refers to the ability of autonomous machines, such as robots and self-driving vehicles, to perceive and understand the real world and perform complex actions autonomously. We regard this domain as one of the key domains supporting the evolution of AI. While AI models enable intelligent decision-making and optimization in digital space, Physical AI translates those capabilities into physical actions in the real world and creates tangible value across a broad range of industries.

To accelerate its robotics initiatives, we consolidated approximately 20 robotics-related portfolio companies from fiscal 2024 through fiscal 2025, which had been dispersed across multiple entities within our group, under an intermediate holding company, Robo HD. This has established a structure to maximize synergy creation by enabling collaboration and resource sharing across technologies, talent, and business platforms across these investments where appropriate. Furthermore, in October 2025, SBG entered into a definitive agreement to acquire the robotics business of ABB Ltd (“ABB”). This business has robust sales channels and a broad customer base spanning more than 50 countries, as well as a track record of cumulative robot shipments exceeding 500,000 units, and provides highly reliable and high-performance products and solutions on a global scale. The acquisition is expected to be completed in the second half of 2026.

We will integrate our robotics-related investments across our group, including ABB’s robotics business, and drive the proliferation and advancement of physical AI through the convergence of AI and robotics.

As outlined in “(2) Key Management Indicators,” SBG’s financial policy is to manage its LTV below 25% under normal market conditions, with an upper threshold of 35% even in extraordinary circumstances, while securing a cash position sufficient to cover bond redemptions for at least the next two years. In fiscal 2025, we made large-scale investments in OpenAI and completed the acquisition of Ampere. However, LTV at the end of fiscal 2025 improved compared with the end of fiscal 2024 due to asset monetization and an increase in the equity value of holdings, while our cash position was maintained at the same level as the end of fiscal 2024.

In fiscal 2026, we plan to continue making active investments to accelerate the evolution of AI, the largest of which is the additional USD 30.0 billion investment in OpenAI committed to in February 2026. In March 2026, we entered into a bridge facility agreement with a total facility amount of USD 40.0 billion, primarily to raise the funds necessary for this follow-on investment. During fiscal 2026, we will prioritize refinancing this bridge facility into long-term funding, along with its repayment. In line with the financial policy described above, we will execute these initiatives in a disciplined manner while appropriately controlling the LTV and utilizing asset monetization and debt financing.

We believe that promoting sustainability in our corporate activities is essential for achieving both the sustainable development of society and our medium- to long-term growth. With this perspective, we have identified risks and opportunities related to sustainability, and are actively engaged in mitigating these risks while capitalizing on the opportunities.

We have identified material issues relating to sustainability (“Material Issues”) that should be addressed as priorities. Among them, we have set three high-priority areas: (a) responsible AI, (b) climate change, and (c) human capital. For each area, we have set specific goals and action plans and are continuously implementing initiatives while monitoring their progress.
See “Sustainability” for more details.