Investor Presentaiton

Investments and Debt Financing to WeWork from the WeWork Investment Subsidiary-2 Debt Type Purchase of unsecured notes Liabilities related to loan commitment Liabilities related to financial guarantee contract Total SoftBank Group (USD mn) Consolidated Statement of Income Gain (loss) FY19 FY20 Consolidated Statement of Financial Position Cumulative debt financing amount Cumulative gain (loss) Account Carrying amount (Minuses show liabilities) FY19-end Account FY20-end 1,800 44 Other financial assets 1,173 1,800 44 -256 -1,334 -92 Other gain (loss) -826 570 Other financial liabilities 140 -72 -819 -220 -2,153 861 -459 599 -1,285 1,213 * Allowances for losses from the financial guarantee contract and the loan commitment are recorded as "other financial liabilities" in the Consolidated Statement of Financial Position. The Company did not record gains or losses relating to the agreement on these contracts on the Consolidated Statement of Income at the time of execution, since the Company acquired consideration for the agreement (warrants convertible for preferred stock of WeWork at $0.01 per share). Subsequently, at the previous fiscal year-end, the Company recorded provision for allowance for losses following a deterioration in WeWork's credit risk, which was reversed during the fiscal year mainly due to the improvement of WeWork's credit risk. For liabilities related to the loan commitment, when the WeWork Investment Subsidiary purchased the unsecured notes, a corresponding amount was reversed from "other financial liabilities" and deducted from the initial recognition amount of loan receivable recorded as "other financial assets." The unsecured notes are regularly amortized from the time when the loan receivable was recognized. Liabilities related to financial guarantee contract are regularly amortized from the fourth quarter of the previous year, when the guarantee started. (Reference) Fair value of the entire equity of WeWork, evaluated by the Company Mar 31, 2020 Jun 30, 2020 Sep 30, 2020 Dec 31, 2020 Mar 31, 2021 USD 2.9 bn USD 2.9 bn USD 2.9 bn USD 2.2 bn USD 3.8 bn Accounting 12

View entire presentation