Recognition of Loss on Valuation of Shares of Subsidiaries and Associates (as Special Loss) in Non-consolidated Financial Statements

May 10, 2016

SoftBank Group Corp.

SoftBank Group Corp. (SBG) announces that it recognized loss on valuation of shares of subsidiaries and associates as special loss in its non-consolidated financial statements (Japan GAAP) for the fiscal year ended March 2016 as follows.

1. Outline of Loss on Valuation of Shares of Subsidiaries and Associates

SBG recognized loss on valuation of shares of subsidiaries and associates of JPY 153,157 million as special loss in its non-consolidated financial statements for the fiscal year ended March 2016. The loss represents impairments of SBG's investments in subsidiaries and associates, including Brightstar Global Group Inc.

Brightstar Global Group Inc. is an intermediate holding company (voting rights held by SBG: 95.5% as of March 31, 2016), which owns 100% interests in Brightstar Corp., who runs wholesale business of mobile devices worldwide. Since its acquisition by SBG on January 30, 2014, Brightstar Corp.'s results have been lower than initially anticipated. In addition, a change of the foreign currency policy by the government of Argentina in December 2015 had a negative impact on its business performance.

The situation concerning Brightstar Corp. significantly lowered the net asset value of Brightstar Global Group Inc. as of March 31, 2016, and therefore SBG impaired the book value of its shares of Brightstar Global Group Inc. to the amount equivalent to its net asset value. The loss on valuation of shares of subsidiaries and associates representing the impairment of the shares of Brightstar Global Group Inc. was JPY 99,970 million.

2. Impact on Consolidated Financial Results of SBG

Under IFRSs, the business results of Brightstar Corp. have been recorded as those of a subsidiary on SBG's consolidated financial statements of income. Therefore, there is no impact from the abovementioned loss on valuation of shares of subsidiaries and associates on SBG's consolidated financial results.

3. Note

As announced in SBG's press release, “Recognition of Loss on Valuation of Shares of Subsidiaries and Associates (as Special Loss) in Non-consolidated Financial Statements,” dated November 4, 2015, SBG already recognized a JPY 39,490 million loss on valuation of shares of subsidiaries and associates as special loss in the temporary account closing for its non-consolidated financial statements for the period ended September 30, 2015. The loss represented impairments of SBG's investments in subsidiaries and associates, including Artemis Corporation and SIMI Holdings, Inc. This loss of JPY 39,490 million is included in the abovementioned loss on valuation of shares of subsidiaries and associates of JPY 153,157 million.

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