Status of Implementation of Share Price-Conscious Management

As a strategic investment holding company, our goal is to maximize corporate value through sustained growth in NAV (net asset value, calculated as equity value of holdings – adjusted net interest-bearing debt). To increase NAV, we focus on investing in carefully selected companies within the AI investment theme, supporting the growth and strengthening the competitiveness of our portfolio companies to enhance their equity value, monetizing investments at appropriate times, and reinvesting those proceeds, while also utilizing recovered capital to invest in new companies with significant growth potential. Strategic investments that offer added value through deep management involvement are expected to be made by SoftBank Group Corp. or its wholly owned subsidiaries, while other investments are expected to be channeled through SoftBank Vision Funds.^*1 When making investment decisions for any of these types of investments, we comprehensively evaluate the potential to generate adequate investment returns, taking into account factors such as market size, competitive landscape, business model, business strategies, and the management team’s enthusiasm and capabilities.

We consider NAV, which reflects our fair net asset value as a strategic investment holding company, to be the best indicator for gauging our enterprise value, rather than consolidated net assets or indicators based on periodic profit or loss. We believe that comparing our NAV to our market capitalization provides an appropriate perspective for market assessment. In the fiscal year ended March 31, 2026, both NAV and market capitalization increased substantially; however, we continue to experience a “NAV discount,” where our market capitalization remains below NAV. We believe there remains potential for further share price appreciation and market capitalization growth through a reduction of this discount.

We believe the factors contributing to the discount include the complexity of understanding our investment strategy, as well as the high proportion of private portfolio companies, including OpenAI. In addition, even among our public portfolio companies, many operate in cutting-edge fields centered on AI, and we believe the market may find it difficult to fully assess their future growth potential at the current stage.

As a strategic investment holding company, we believe that maximizing NAV over the medium to long term best serves the interests of our shareholders. Based on this belief, we are steadily executing investments aimed at capturing significant opportunities arising from the evolution and widespread adoption of AI including market expansion and the creation of new industries, while striving to enhance the enterprise value of our portfolio companies. This would result in the increase of our equity value of holdings and thereby expanding NAV. In addition, by maintaining optimal leverage in accordance with our financial policies, we pursue an investment strategy that also takes financial soundness into consideration.

We believe that appropriately allocating the recovered capital to new investments, the value enhancement of existing portfolio companies, and portfolio rotation to investments, shareholder returns, and financial improvements will contribute to future NAV growth and a narrowing of the NAV discount.

We are currently prioritizing growth investments, and NAV continues to grow steadily. To achieve further growth in our NAV and a reduction in the NAV discount, we will continue to articulate our potential for future growth to investors while further enhancing our disclosure materials to promote deeper understanding among investors.