Sale of Shares in Subsidiary Boston Dynamics, Inc.

SoftBank Group Corp. (“SBG”), through one of its wholly owned subsidiaries, today announced that it agreed on main terms of a transaction with South Korea-based Hyundai Motor Company and its affiliates (collectively “Hyundai Motor Group”) and Euisun Chung, Chairman of Hyundai Motor Group, pursuant to which (i) SBG, through one of its wholly owned subsidiaries, will sell the majority of its stake in Boston Dynamics, Inc. (“Boston Dynamics”), a U.S. subsidiary of SBG that develops and deploys highly mobile robots, to Hyundai Motor Group and Euisun Chung, and (ii) Hyundai Motor Group and Euisun Chung will subscribe for additional shares of Boston Dynamics (collectively, the “Transaction”). The Transaction values Boston Dynamics at USD 1.1 billion and, subject to regulatory approval and other customary closing conditions, is expected to close by June 2021. Upon completion of the Transaction, Boston Dynamics will cease to be a subsidiary of SBG and no longer be consolidated into SBG’s financial results. SBG, through one of its wholly owned subsidiaries, will retain a minority stake in Boston Dynamics.

Since SBG, through one of its wholly owned subsidiaries, acquired Boston Dynamics in February 2018, SBG and Boston Dynamics have enjoyed a highly successful partnership, with SBG aiding in the transformation of Boston Dynamics from a world-renowned R&D facility into a leading-edge commercial enterprise. In the course of its regular reviews of its portfolio companies to ensure it is maximizing value for its shareholders as a global investment holding company, SBG determined that now is the right time to bring Hyundai Motor Group, one of the world’s leading global mobility companies, into the partnership. SBG believes Hyundai Motor Group will take Boston Dynamics to the next level by accelerating its path to commercialization.

After the closing of the Transaction, Hyundai Motor Group and Euisun Chung will collectively hold an approximately 80% ownership interest, and SBG, through one of its wholly owned subsidiaries, will retain an approximately 20% ownership interest in Boston Dynamics. By continuing its partnership with Boston Dynamics, SBG will participate in its future upside and remain a resource to Boston Dynamics as it continues to grow and commercialize.

Upon completion of the Transaction, Boston Dynamics will cease to be a subsidiary of SBG and will no longer be consolidated into SBG’s financial results. Upon completion of the Transaction, the shares of Boston Dynamics that continue to be held by SBG after the Transaction will be recorded as “investment securities” at fair value in SBG’s consolidated statement of financial position and its quarterly changes will be recorded as “gain on investments at Investment Business of Holding Companies” in the consolidated statement of income. Other impacts on SBG’s consolidated financial statements will be minor.

Prior to the closing of the Transaction, all of Boston Dynamics’s assets and liabilities will be presented as assets and liabilities held for sale in SBG’s consolidated statement of financial position for the nine-month period ending December 2020.

SBG does not provide forecasts of consolidated results of operations because they are difficult to project due to numerous uncertainties affecting earnings.