SoftBank : Earnings Documents (sbkk financial report 20260511 en)

This translation of the financial report was prepared for reference purposes only. Should there be any inconsistency between the translation and the original Japanese document, the latter shall prevail.

May 11, 2026

(Amounts are rounded to the nearest million yen)

1. Consolidated Financial Results for the Fiscal Year Ended March 31, 2026

   1. Consolidated operating results (Percentages are shown as year-on-year changes)

      	Revenue		Operating income		Profit before income taxes		Net income		Net income attributable to owners of the Company		Total comprehensive income
      Fiscal year ended March 31, 2026	Millions of yen 7,038,680	%	Millions of yen 1,042,576	%	Millions of yen 930,022	%	Millions of yen 726,623	%	Millions of yen 550,759	%	Millions of yen 780,733	%
      		7.6		5.4		5.7		10.9		4.7		24.1
      Fiscal year ended March 31, 2025	6,544,349	7.6	989,016	12.9	880,057	9.2	655,286	11.0	526,133	7.6	629,071	1.1

      	Basic earnings per share	Diluted earnings per share	Ratio of net income to equity attributable to owners of the Company	Ratio of profit before income taxes to total assets	Ratio of operating income to revenue
      Fiscal year ended March 31, 2026	Yen	Yen	%	%	%
      	11.35	11.27	19.3	5.4	14.8
      Fiscal year ended March 31, 2025	10.99	10.84	20.5	5.6	15.1

      Reference:

      Share of losses of associates accounted for using the equity method is as follows:

      Fiscal year ended March 31, 2026 ¥(7,803) million Fiscal year ended March 31, 2025 ¥(9,650) million

      Notes:

      1. The Company conducted a stock split whereby each share of the Company's common shares was split into 10 shares, with the effective date being October 1, 2024. "Basic earnings per share" and "Diluted earnings per share" are calculated assuming that the stock split had been carried out at the beginning of the previous fiscal year.

      2. The dividends related to Bond-Type Class Shares are deducted in the calculation of earnings per share.

   2. Consolidated financial position

      	Total assets	Total equity	Equity attributable to owners of the Company	Ratio of equity attributable to owners of the Company to total assets	Equity per share attributable to owners of the Company
      	Millions of yen	Millions of yen	Millions of yen	%	Yen
      As of March 31, 2026	18,502,175	4,668,455	2,957,859	16.0	55.13
      As of March 31, 2025	16,102,195	4,265,371	2,743,630	17.0	50.96

      Notes:

      1. The Company conducted a stock split whereby each share of the Company's common shares was split into 10 shares, with the effective date being October 1, 2024. "Equity per share attributable to owners of the Company" is calculated assuming that the stock split had been carried out at the beginning of the previous fiscal year.

      2. "Equity per share attributable to owners of the Company" is based on "Equity attributable to owners of the Company" excluding the amount not attributable to common shareholders.

   3. Consolidated cash flows

   	Operating activities	Investing activities	Financing activities	Cash and cash equivalents at the end of the year
   Fiscal year ended March 31, 2026	Millions of yen 1,393,760	Millions of yen (1,270,806)	Millions of yen (136,854)	Millions of yen 1,438,799
   Fiscal year ended March 31, 2025	1,367,871	(995,183)	(956,429)	1,435,525

2. Dividends

   	Dividends per share					Total dividends (Annual)	Payout ratio (Consolidated)	Ratio of dividend to equity attributable to owners of the Company (Consolidated)
   	First quarter	Second quarter	Third quarter	Fourth quarter	Total
   Fiscal year ended March 31, 2025 Fiscal year ended March 31, 2026	Yen	Yen	Yen	Yen	Yen	Millions of yen	%	%
   	- -	43.00 4.30	- -	4.30 4.30	- 8.60	408,226 410,817	78.3 75.8	17.4 16.2
   Fiscal year ending March 31, 2027 (Forecast)	-	4.40	-	4.40	8.80		76.2

   Notes:

   1. The dividend for the fiscal year ended March 31, 2026 is scheduled to be submitted for approval to the Board of Directors of the Company at a meeting planned for May 15, 2026.

   2. The abovementioned "Dividends" pertain to the dividends related to common shares. Please see the following "Dividends of Bond-Type Class Shares" for information on the dividends related to Bond-Type Class Shares.

   3. The Company conducted a stock split whereby each share of the Company's common shares was split into 10 shares, with the effective date being October 1, 2024. Regarding the abovementioned amount for the fiscal year ended March 31, 2025, the second-quarter dividend per share is before the stock split while the fourth-quarter dividend per share takes the stock split into account. The annual dividends per share are not stated because the amounts cannot be simply combined due to the implementation of the stock split. If the stock split were not conducted, the annual dividends per share would be 86 yen.

3. Consolidated Financial Result Forecasts for the Fiscal Year Ending March 31, 2027

(Percentages are shown as year-on-year changes)

Notes:

1. For details of the above consolidated financial forecast, refer to "(5) Forecasts" under "1. Results of Operations."

2. The dividends related to Bond-Type Class Shares are deducted in the calculation of earnings per share.

1. Significant changes in scope of consolidation: Yes Newly consolidated: Four Companies

   Company Names: LINE Bank Taiwan Limited, LINE MAN CORPORATION PTE. LTD. and its 2 subsidiaries

   Excluded from consolidation: Two Companies

   Company Names: Z Financial Corporation, LINE Pay Corporation

   Note: For details, please refer to "(1) Significant Changes in Scope of Consolidation for the Fiscal Year Ended March 31, 2026" under "3. Notes to Summary Information" on page 22 of the appendix to this consolidated financial report.

2. Changes in accounting policies and accounting estimates

   1. Changes in accounting policies required by IFRS: Yes

   2. Changes in accounting policies other than those in [1]: No

   3. Changes in accounting estimates: No

   Note: For details, please refer to "(2) Changes in Accounting Policies and Accounting Estimates" under "3. Notes to Summary Information" on page 22 of the appendix to this consolidated financial report.

3. Number of issued shares (common stock)

[1] Number of shares issued (including treasury stock)

Note: The Company conducted a stock split whereby each share of the Company's common shares was split into 10 shares, with the effective date being October 1, 2024. "Average number of shares outstanding" is calculated assuming that the stock split had been carried out at the beginning of the previous fiscal year.

• This consolidated financial report is not subject to audit by certified public accountants or an audit firm.
• Explanation on the proper use of the forecast on financial results and other notes

This document is based on the information available to SoftBank Corp. as of the time hereof and assumptions which it believes are reasonable. Statements contained herein that are not historical facts, including, without limitation, our plans, forecasts, strategies and beliefs about our business and financial prospects, are forward-looking statements. Forward-looking statements often include words such as "targets," "plans," "believes," "hopes," "continues," "expects," "aims," "intends," "will," "may," "should," "would," "could," "anticipates," "estimates," "projects" or words or terms of similar substance or the negative thereof. These forward-looking statements do not represent any guarantee by us or our management of future performance or of any specific outcome and are subject to various risks and uncertainties, including, without limitation, general economic conditions, conditions in the Japanese telecommunications market, our ability to adopt new technologies and business models, competition against competitors, our ability to improve and maintain our telecommunications network, our reliance on third parties in conducting our business, including SoftBank Group Corp. and its other subsidiaries and associates, our major vendors and suppliers, and other third parties, risks relating to M&A and other strategic transactions, risks relating to information security and handling of personally identifiable information, changes in the substance and interpretation of other laws and regulations and other important factors, which may cause actual results to differ materially from those expressed or implied in any forward-looking statement.

SoftBank Corp. expressly disclaims any obligation or responsibility to update, revise or supplement any forward-looking statement in any document or generally to the extent allowed by law or stock exchange rules. Use of or reliance on the information in this material is at your own risk.

For assumptions underlying forecasts, notes on the use of forecasts and related matters, please see "(5) Forecasts" under "1. Results of Operations" on page 20 of the appendix to this consolidated financial report.

(How to obtain supplementary financial materials and information on the earnings results briefing)

On Monday, May 11, 2026 (JST), the Company will hold an earnings results briefing online for the media, institutional investors, and financial institutions. This earnings results briefing is scheduled to be broadcast on the Company's website in both Japanese and English at https://www.softbank.jp/en/corp/ir/documents/presentations. The Data Sheet is also scheduled to be posted on the Company's website concurrently with the earnings report, and the materials and videos to be used at the earnings results briefing, along with a summary of the main questions and answers, are scheduled to be posted on the Company's website promptly after the earnings results briefing.

Dividends of Bond-Type Class Shares

The breakdown of dividends per share related to Bond-Type Class Shares, which have different rights and relationships compared to common shares, is as follows:

Series 1 Bond-Type Class Shares

Note:

1. The dividend for the fiscal year ended March 31, 2026 is scheduled to be submitted for approval to the Board of Directors of the Company at a meeting planned for May 15, 2026.

Series 2 Bond-Type Class Shares

Note:

1. The dividend for the fiscal year ended March 31, 2026 is scheduled to be submitted for approval to the Board of Directors of the Company at a meeting planned for May 15, 2026.

Policy on acquisition of Series 1 Bond-Type Class Shares and Series 2 Bond-Type Class Shares

Based on the clause for acquisition by the Company (call option), the Company may acquire the Series 1 Bond-Type Class Shares and the Series 2 Bond-Type Class Shares in exchange for cash after the elapse of five years from the issuances, etc. We will determine whether to acquire (call) these Bond-Type Class Shares in exchange for cash, taking into consideration our business and financial strategy, market conditions and other factors at the time.

We fully understand that, as is customary in the market for hybrid financing, many investors expect to be called when the dividend rate is stepped up.

(Appendix)

Contents

Company names and abbreviations used in this appendix, except as otherwise stated or interpreted differently in the context, are as follows:

Company names / Abbreviations Definition

The Company SoftBank Corp. (standalone basis)

The Group SoftBank Corp. and its subsidiaries

SoftBank Group Corp. SoftBank Group Corp. (standalone basis)

SoftBank Group SoftBank Group Corp. and its subsidiaries

LY Corporation LY Corporation (standalone basis)

LY Group LY Corporation and its subsidiaries

The diagram below indicates ratio of voting rights as of March 31, 2026.

The Group has five reportable segments: the Consumer segment, the Enterprise segment, the Distribution segment, the Media & EC segment, and the Financial segment.

The main businesses and core companies of each reportable segment are as follows:

Segments Main business Core companies Reportable segments

Consumer segment ・Provision of mobile services to individual

customers

・Provision of broadband services

・Sale of mobile devices

・Trading and supply of electric power and provision of electric power trading agency services

Enterprise segment ・Provision of mobile services to enterprise

customers

・Provision of fixed-line communications services, such as data communications and fixed-line telephone services

・Provision of cloud, global, AI2/IoT3, and other solution services

・Provision of software-defined connected vehicles4solutions

・Provision of cloud services, security operation monitoring services, and IoT solutions

・Provision of IoT, Linux/OSS, and authentication and security services

Distribution segment ・Provision of products and services addressing ICT7,

cloud services, IoT solutions, and other areas for enterprise customers

・Provision of mobile and PC peripherals, including accessories, as well as software, IoT products, and other items for individual customers

Media & EC segment8・Provision of media-related services, such as media

and advertising, search, marketing solutions, vertical, content, and stamps

・Provision of commerce-related services such as shopping services, including Yahoo! JAPAN Shopping and ZOZOTOWN; reuse services including Yahoo! JAPAN Auction; food delivery services and O2O services.

・Provision of AI, healthcare, and other services centered on FinTech9

Financial segment ・Development and provision of mobile payments

and other electronic payment services

・Provision of credit card business

・Banking business

・Provision of online securities brokerage service for smartphones

・Provision of payment processing services

Other ・Planning and production of digital media and digital content

・Others

The Company

Wireless City Planning Inc. SB Mobile Service Corp. SB Power Corp.

The Company

Wireless City Planning Inc. SB Engineering Corp.

IDC Frontier Inc. eMnet Japan. co. ltd. Cubic Telecom Ltd. SB Technology Corp.5

Cybertrust Japan Co., Ltd. SB OAI Japan GK6

SB C&S Corp.

LY Corporation ASKUL Corporation ZOZO, Inc.

Ikyu Corporation

LINE Pay Taiwan Limited LINE Bank Taiwan Limited10 LINE Financial Corporation LINE Plus Corporation

LINE SOUTHEAST ASIA CORP.PTE.LTD.

Kurashiru, Inc.11

LINE MAN CORPORATION PTE. LTD.12 DECACORN CO., LTD.12

LINE MAN (THAILAND) COMPANY LIMITED12

PayPay Corporation13 PayPay Card Corporation PayPay Bank Corporation14

PayPay Securities Corporation SB Payment Service Corp.

The Company ITmedia Inc.

Notes:

1. Segment income for reportable segments is calculated as follows:

   Segment income = (revenue - operating expenses (cost of sales + selling, general and administrative expenses ± other operating income and loss)) in each segment

2. AI stands for artificial intelligence.

3. IoT stands for Internet of Things, a technology that will enable communications between all manner of things via the Internet.

4. Software-defined connected vehicle is a term that describes a vehicle whose features and functions are primarily enabled through software connected to the Internet. Cubic Telecom Ltd.'s connectivity platform is embedded in vehicles at the point of manufacturing, enabling OEMs to leverage software-defined technologies.

5. At a meeting of its Board of Directors held on November 26, 2025, the Company resolved to carry out an absorption-type merger of its wholly owned subsidiary, SB Technology Corp., effective from April 1, 2026. Accordingly, SB Technology Corp. was dissolved.

6. The Company, SoftBank Group Corp. and OpenAI Group PBC launched their joint venture, SB OAI Japan GK on November 5, 2025.

7. ICT stands for Information Communication Technology.

8. Effective March 31, 2026, LY Corporation carried out an absorption-type merger of its wholly owned subsidiary, LINE Pay Corporation. Accordingly, LINE Pay Corporation was dissolved.

9. FinTech is a term coined from the combination of finance and technology and refers to a variety of innovative services that combine financial services with information and communication technology.

10. LY Corporation increased the capital of LINE Bank Taiwan Limited, an associate, in June 2025 through its subsidiary. As a result, LY Corporation acquired control of LINE Bank Taiwan Limited, which became its subsidiary.

11. On October 1, 2025, dely inc. changed its trade name to Kurashiru, Inc.

12. LY Corporation acquired additional shares and other interests in LINE MAN CORPORATION PTE. LTD., an associate, in September 2025 through its subsidiary. As a result, LY Corporation acquired control of LINE MAN CORPORATION PTE. LTD., and its subsidiaries, DECACORN CO., LTD. and LINE MAN (THAILAND) COMPANY LIMITED, became subsidiaries of LY Corporation.

13. PayPay Corporation was listed on a U.S. stock exchange on March 11, 2026 (U.S. time), and the Company's ratio of voting rights changed from 66.00% to 62.16%.

14. Following the acquisition of PayPay Bank Corporation as a subsidiary by PayPay Corporation in April 2025, from the fiscal year ending March 31, 2026, PayPay Bank Corporation, which was previously classified under the "Media & EC segment," has been transferred to the "Financial segment."

1. Overview of Consolidated Results of Operations
   1. Management Environment and the Group's Initiatives

      Guided by its corporate philosophy of "Information Revolution-Happiness for everyone," the Group has been undertaking a wide range of businesses in the information and technology fields. The Group has embraced the vision of becoming "a corporate group needed most by people around the world" and has been working to maximize its corporate value. Moreover, the Group has identified six material issues1 to be addressed and contributes to solving various social issues through its businesses.

      In the fiscal year ended March 31, 2026, the Japanese economy remained generally robust, despite impacts such as rising prices, labor shortages, and rising interest rates. On the other hand, the outlook remains uncertain against the backdrop of factors such as U.S. tariff trends and increasing tensions in the Middle East. Under these business conditions, digitalization has been progressing while the utilization of AI has been expanding rapidly among companies and the government as they seek to address labor shortages and strengthen competitiveness. In particular, with the evolution and widespread adoption of AI, demand for data processing and electricity is expected to expand, and the infrastructure that supports these needs is growing increasingly important.

      The Group has established its Long-term Vision to be "a company that provides Next-generation Social Infrastructure essential for development of a digital society" by 2030. With this Long-term Vision, the Group's intention is to build infrastructure designed to meet the projected rapid increase in demand for data processing and electricity brought on by the accelerated evolution of AI, and to become an indispensable company that will support the future's vast array of digital services. Under the Medium-term Management Plan from the fiscal year ended March 31, 2024 to the fiscal year ended March 31, 2026, the Group has been rebuilding its business foundations by strengthening the earnings base of the telecommunications business and driving growth in non-telecommunications businesses. Furthermore, net income attributable to owners of the Company for the fiscal year ended March 31, 2026, which is the plan's final year, reached a record high of ¥550.8 billion, exceeding the target of ¥543.0 billion2.

      In the new Medium-term Management Plan (covering the period from the fiscal year ending March 31, 2027 to the fiscal year ending March 31, 2031) announced in May 2026, the Group will aim to complete the Next-generation Social Infrastructure while promoting further business growth. Specifically, through the promotion of the new growth strategy "Activate AI for Society," the Group aims to achieve consolidated operating income of ¥1.7 trillion and net income attributable to owners of the Company of ¥700 billion in the fiscal year ending March 31, 2031, the final year of the current plan, thereby reaching new record-high profits. The new growth strategy "Activate AI for Society" seeks to maximize corporate value by activating the potential of AI across all businesses and driving its implementation in society. By monetizing AI infrastructure and AI services, and through the evolution and growth of all business segments through AI, the Group is driving sustainable, Group-wide business growth.

      
      
      

      Major Initiatives

      -In the telecommunications business, in June 2025, the Company made an equity investment in Sceye, Inc., which develops LTA-type3 HAPS4 vehicles, with which it also signed an agreement that gives it exclusive rights to provide HAPS-based services in Japan using Sceye, Inc.'s platform. By utilizing LTA-type HAPS and promoting early commercialization, the Company plans to launch pre-commercial HAPS services in Japan in 2026. Furthermore, by providing HAPS-based commercial services, the Company aims to build a next-generation telecommunications network with 3D architecture to support stable and reliable connectivity for drones and UAV5 in the 6G (6th generation mobile communications systems) era, in addition to providing telecommunications services during large-scale disasters when terrestrial networks are disrupted. Meanwhile, in August 2025, the Company revised various service fees related to its mobile and broadband services in light of recent social and economic conditions, including rising costs associated with high inflation. Additionally, in September 2025, the Company launched the Simple 3 S/M/L plans (hereinafter "Simple 3") under the Y!mobile brand. Simple 3 is a new price plan that enhances features valued by many users, such as larger data allowances, broader benefits from ecosystem services, and overseas data services available at no additional charge. Furthermore, in January 2026, the Company and Sony Network Communications Inc. announced that the two companies have entered into a definitive agreement to establish a joint venture company to be jointly owned by the two companies, and to have the joint venture company succeed to the Company's business relating to the construction, management, and operation of optical line terminals6 and subscriber lines through an absorption-type split. Under a governance structure in which both companies appoint an equal number of directors, the two companies aim to streamline operations, and further enhance network quality. By maximizing synergies, the two companies will strive to enhance the value provided to users.

      -In the new field of AI and related areas, in October 2025, the Company and Oracle Corporation (hereinafter "Oracle") commenced a collaboration to provide secure, compliant, and scalable sovereign cloud and AI services to organizations in Japan, operating cloud data and systems under domestic control. Based on this collaboration, the Company has been sequentially offering "Cloud PF Type A" from April 2026. In "Cloud PF Type A," the Company will deploy "Oracle Alloy"7 to build an advanced cloud infrastructure in its data centers in Japan, ensuring that data and systems are fully managed and operated within Japan, to deliver secure, sovereign cloud services. The Company will utilize "Cloud PF Type A" to support GPU environments and build a cloud infrastructure capable of high-speed computation and generative AI workloads, addressing the increasing importance of sovereignty in generative AI adoption. In November 2025, the Company and its subsidiary SB Intuitions Corp. began offering "Sarashina API," a service that enables enterprise customers to connect to the homegrown large language model (LLM) "Sarashina mini." "Sarashina mini" is a lightweight model developed by SB Intuitions Corp. based on its expertise gained from building the 460-billion-parameter homegrown LLM "Sarashina," delivering high Japanese-language performance and a deep understanding of Japan's unique culture and business practices. Enterprise customers can use "Sarashina API" to connect their systems and applications, enabling efficiency across a wide range of operations. In addition to deploying "Sarashina mini," the Company and SB Intuitions Corp. will work on developing industry-specific Japanese LLMs to deliver tailored solutions that meet the diverse needs of various businesses and sectors. Also in November, the Company, SoftBank Group Corp., and OpenAI Group PBC (hereinafter "OpenAI") established a joint venture, SB OAI Japan GK (hereinafter "SB OAI Japan"). SB OAI Japan will leverage OpenAI's advanced AI technology to market "Crystal intelligence" - a packaged enterprise AI solution that integrates OpenAI's latest products with tailored implementation and system integration services. SB OAI Japan is expected to market "Crystal intelligence" exclusively in Japan, with availability planned for 2026. By rolling out "Crystal intelligence" and supporting the utilization of AI that is deeply rooted in management and operational processes, SB OAI Japan aims to transform the management of Japan's companies. Furthermore, in November, Gen-AX Corp., a subsidiary of the Company, officially began providing "X-Ghost," an autonomous AI-powered voice solution for contact centers. "X-Ghost" supports companies both in enhancing operational efficiency and delivering a superior customer experience as an "AI Operator" that autonomously thinks and handles customer interactions through natural voice dialogue. In addition, in January 2026, the Company announced the development of "Infrinia AI Cloud OS," a software stack8 designed for AI data centers, and its plan to deploy "Infrinia AI Cloud OS" initially within its own GPU cloud services. By deploying "Infrinia AI Cloud OS," AI data center operators can build Kubernetes9 as a Service (KaaS) in a multi-tenant environment, and Inference as a Service (Inf-aaS) that provides Large Language Model inference capabilities via APIs, as part of their own GPU cloud services. Furthermore, the Company aims to expand deployment of "Infrinia AI Cloud OS" to overseas data centers and cloud environments with a view to global adoption.

      -In the Financial segment, in May 2025, the Company and Sumitomo Mitsui Card Company, Limited entered into a memorandum of understanding concerning a comprehensive business partnership in the digital field. The alliance aims to create convenient and beneficial cashless services by integrating various functions of SMBC Group's comprehensive personal financial service "Olive" and the Group's diverse products and services, including healthcare, and by facilitating mutual integration between "Olive" and "PayPay." Also, PayPay Corporation, a subsidiary of the Company, closed its initial public offering of 54,987,214 American depositary shares (hereinafter the "ADSs") representing its common shares, and was listed on March 11, 2026 (US time). A total of 63,235,295 ADSs were offered in the IPO, and the total number of issued shares of PayPay Corporation stood at 676,955,535 as of the end of March 2026. Net proceeds from the IPO were JPY 94.6 billion ($603 million), after deducting underwriting discounts and commissions and the estimated offering expenses payable by PayPay Corporation. Following the completion of the IPO, PayPay Corporation remains a consolidated subsidiary of the Company.

      • In April 2025, the Company was selected as a "DX Stocks 2025" for the fifth consecutive year by the Ministry of Economy, Trade and Industry, the Tokyo Stock Exchange, and the Information-technology Promotion Agency, Japan. Furthermore, the Company was for the first time named a "DX Grand Prix 2025" company, an enterprise that leads the digital era. This was the result of strong

        recognition of its outstanding capabilities in realizing DX10, such as the development and skill enhancement of digital and AI talent, the operational efficiency and sophistication of its existing business models, and its proactive sharing of information with stakeholders, including through its IR activities. Additionally, in May 2025, the Company was selected for the first time as an "SX Brand 2025," a group of progressive companies that enhance their ability to generate growth capital in a sustainable manner through SX11 with the aim of improving corporate value. This was due to strong recognition of the Company's value creation story of generating social value with technology as a competitive advantage, as well as its practice of setting TSR (Total Shareholder Return) as a medium- to longterm growth indicator and linking it to executive remuneration.

      • In July 2025, the Company issued its first U.S. dollar-denominated senior unsecured notes in overseas markets. Prior to the issuance, the Company received credit ratings of "BBB"12 from S&P Global Ratings Japan Inc. and "BBB+" from Fitch Ratings Japan Limited, both with a "Stable" outlook. By securing funding options beyond Japan, the Company aims to implement flexible financial strategies that take into account foreign exchange and global interest rate trends, thereby improving funding cost efficiency and smoothing its repayment schedule.

      Notes:

      1. For details on the material issues, please see the Company's website: https://www.softbank.jp/en/corp/sustainability/materiality/

      2. The target at the time of the announcement of the Medium-term Management Plan in May 2023 was ¥535.0 billion. Subsequently, backed by strong performance, the target was revised upward twice, in May 2025 and February 2026, to ¥543.0 billion.

      3. LTA (Lighter-Than-Air) refers to a HAPS platform that remains airborne by utilizing buoyancy, being lighter than air.

      4. HAPS (High Altitude Platform Station) collectively refers to systems that provide telecommunication services over wide areas by operating uncrewed vehicles as telecommunications base stations, such as aircraft continuously flown in the stratosphere.

      5. UAV refers to uncrewed aerial vehicles.

      6. An optical line terminal ("OLT") refers to terminal equipment installed at a telecommunications carrier's central office to provide optical fiber services.

      7. "Oracle Alloy" is a complete cloud infrastructure platform that enables partner operators to become cloud service providers and customize services to meet customer needs.

      8. A software stack is a set of software components and functions used together to build and operate systems and applications.

      9. Kubernetes is an open-source system for automating the deployment and scaling of applications and for managing containerized applications.

      10. DX (digital transformation) refers to using digital technology to provide new value and experiences and transform society.

      11. SX (sustainability transformation) refers to an initiative in which a company strives to improve long-term and sustainable corporate value by synchronizing the sustainability of society with that of itself while carrying out the necessary management and business reforms to achieve such synchronization.

      12. The stand-alone credit profile (credit profile of the Company on a stand-alone basis) from S&P Global Ratings Japan Inc. is bbb+.

   2. Consolidated Results of Operations

      (Billions of yen)

      Fiscal Year Ended March 31

      	2025	2026	Change	Change %
      Revenue	6,544.3	7,038.7	494.3	7.6%
      Operating income	989.0	1,042.6	53.6	5.4%
      Profit before income taxes	880.1	930.0	50.0	5.7%
      Income taxes	(224.8)	(203.4)	21.4	(9.5)%
      Net income	655.3	726.6	71.3	10.9%
      Net income attributable to:
      Owners of the Company	526.1	550.8	24.6	4.7%
      Non-controlling interests	129.2	175.9	46.7	36.2%
      Adjusted EBITDA1	1,753.1	1,819.6	66.4	3.8%

      Note:

      1. Adjusted EBITDA = operating income + depreciation and amortization (including loss on disposal of non-current assets) + stock compensation expenses ± other adjustments. For details, refer to "(4) Non-IFRS Financial Measures."

      An overview of the consolidated results of operations for the fiscal year ended March 31, 2026 is as follows:

      1. Revenue

         For the fiscal year ended March 31, 2026, revenue increased by ¥494.3 billion (7.6%) year on year to ¥7,038.7 billion, marking a record high. All reportable segments posted higher revenue, with increases of ¥166.8 billion in the Distribution segment mainly due to solid increase in revenue from ICT related products for enterprise customers, recurring revenue products, and products for consumers,

         ¥80.5 billion in the Enterprise segment mainly due to an increase in demand for solutions associated with digitalization, ¥79.0 billion in the Financial segment mainly due to an increase in gross merchandise value of QR code payments and credit card services provided by PayPay Corporation and PayPay Card Corporation, ¥62.2 billion in the Consumer segment mainly due to increases in revenues from sales of goods and others and mobile, and ¥39.1 billion in the Media & EC segment mainly due to increases in commerce revenue excluding ASKUL Corporation and strategy revenue, despite the impact of the system outage at ASKUL Corporation.

      2. Operating income

         For the fiscal year ended March 31, 2026, operating income increased by ¥53.6 billion (5.4%) year on year to ¥1,042.6 billion. Operating income increased by ¥44.6 billion in the Financial segment, ¥22.1 billion in the Enterprise segment, ¥20.4 billion in the Consumer segment, and ¥4.8 billion in the Distribution segment, despite a decrease of ¥18.4 billion in the Media & EC segment mainly due to the system outage at ASKUL Corporation.

      3. Net income

         For the fiscal year ended March 31, 2026, net income increased by ¥71.3 billion (10.9%) year on year to ¥726.6 billion. This is mainly due to the aforementioned increase of ¥53.6 billion in operating income and a decrease in income tax. The decrease in income tax is mainly due to the additional recording of deferred tax assets associated with the reassessment of the recoverability of deferred tax assets at PayPay Corporation, while there was an increase in expenses resulting from the absence of the deferred tax impact from business restructuring of associates recorded in the previous fiscal year.

      4. Net income attributable to owners of the Company

         For the fiscal year ended March 31, 2026, net income attributable to owners of the Company increased by ¥24.6 billion (4.7%) year on year to ¥550.8 billion. Net income attributable to non-controlling interests increased by ¥46.7 billion (36.2%) year on year to ¥175.9 billion, mainly due to an increase in net income at the LY Group, including PayPay Corporation.

      5. Adjusted EBITDA

      For the fiscal year ended March 31, 2026, adjusted EBITDA increased by ¥66.4 billion (3.8%) year on year to ¥1,819.6 billion. This is mainly due to an increase in operating income.

   3. Results by Segment

1. Consumer Segment OVERVIEW

   In the Consumer segment, the Group provides services, such as mobile services, broadband services, and electricity services, including the Ouchi Denki (Home Electricity) service, to individual customers in Japan. The Company procures mobile devices from mobile device manufacturers and sells the mobile devices to distributors operating SoftBank shops, etc. and individual customers.

   FINANCIAL RESULTS

   Fiscal Year Ended March 31

   (Billions of yen)

   	2025	2026	Change	Change %
   Revenue	2,952.9	3,015.1	62.2	2.1%
   Operating expenses1	2,422.4	2,464.3	41.8	1.7%
   Of which, depreciation and amortization	378.8	374.3	(4.5)	(1.2)%
   Segment income	530.4	550.8	20.4	3.8%

   Note:

   1. Operating expenses include cost of sales, selling, general and administrative expenses, other operating income, and other operating expenses.

   Breakdown of Revenue

   Fiscal Year Ended March 31

   (Billions of yen)

   2025		2026	Change	Change %
   Service revenues 2,239.0		2,221.5	(17.5)	(0.8)%
   Mobile	1,574.5	1,591.8	17.3	1.1%
   Broadband	408.8	419.4	10.6	2.6%
   Electricity	255.8	210.3	(45.4)	(17.8)%
   Revenues from sales of goods and others	713.9	793.6	79.7	11.2%
   Total revenue	2,952.9	3,015.1	62.2	2.1%

   Consumer segment revenue increased by ¥62.2 billion (2.1%) year on year to ¥3,015.1 billion. Within Consumer segment revenue, service revenues decreased by ¥17.5 billion ((0.8)%) year on year to ¥2,221.5 billion, and revenues from sales of goods and others increased by ¥79.7 billion (11.2%) year on year to ¥793.6 billion.

   Within service revenues, mobile revenue increased by ¥17.3 billion (1.1%) year on year. The increase mainly reflected year-on-year growth in smartphone subscribers, led primarily by the Y!mobile brand, amid a stable trend in average revenue per user.

   In addition, excluding the impact of customer acquisition measures, mobile revenue for each three-month period has transitioned to year-on-year growth since the three months ended December 31, 2023. Although revenue decreased in the fourth quarter, excluding the impact of retrospective adjustments of access charges in Accounting Regulations for Interconnection, it continued to increase year on year.

   (Billions of yen) Fiscal Year Ended March 31, 2025 Fiscal Year Ended March 31, 2026

   Q1	Q2	Q3	Q4	Q1	Q2	Q3	Q4
   Mobile revenue 392.3	396.5	388.2	397.5	397.5	400.9	404.6	388.7
   Of which, the impact of customer -	-	(11.2)	(2.0)	-	-	(2.6)	(9.3)
   Mobile revenue (excluding the impact 392.3	396.5	399.4	399.5	397.5	400.9	407.2	398.1
   YoY change 7.6	4.5	6.3	6.4	5.2	4.4	7.8	(1.5)

   acquisition measures1

   of customer acquisition measures)

   Note:

   1. Based on IFRS 15 "Revenue from Contracts with Customers", certain customer acquisition measures are deducted from mobile revenue.

   Broadband revenue increased by ¥10.6 billion (2.6%) year on year. This increase was mainly due to a year-on-year increase in subscribers of the SoftBank Hikari fiber-optic service1.

   Electricity revenue decreased by ¥45.4 billion (17.8%) year on year. This decrease was mainly due to a decrease in transactions in the electricity market.

   The increase in revenues from sales of goods and others was mainly due to an increase in unit prices of mobile devices.

   Operating expenses were ¥2,464.3 billion, an increase of ¥41.8 billion (1.7%) year on year. This increase was mainly due to increases in sales promotion expenses and the cost of goods of smartphones, etc., while there was a decrease in the cost of electricity.

   As a result, segment income increased by ¥20.4 billion (3.8%) year on year to ¥550.8 billion.

   Note:

   1. Includes subscribers of SoftBank Air

2. Enterprise Segment OVERVIEW

   In the Enterprise segment, the Group provides a wide range of services for enterprise customers. These include mobile services such as mobile lines and mobile device rental, fixed-line services such as fixed-line telephones and data communications, as well as various solution services for enterprises such as data center, cloud, security, global, AI, IoT, and digital marketing services.

   FINANCIAL RESULTS

   Fiscal Year Ended March 31

   (Billions of yen)

   	2025	2026	Change	Change %
   Revenue	922.4	1,002.9	80.5	8.7%
   Operating expenses1	752.1	810.5	58.4	7.8%
   Of which, depreciation and amortization	166.3	178.3	12.0	7.2%
   Segment income	170.3	192.4	22.1	13.0%

   Note:

   1. Operating expenses include cost of sales, selling, general and administrative expenses, other operating income, and other operating expenses.

      Breakdown of Revenue

      Fiscal Year Ended March 31

      (Billions of yen)

      	2025	2026	Change	Change %
      Mobile	315.9	340.6	24.8	7.8%
      Fixed-line	169.3	167.3	(2.1)	(1.2)%
      Business solution and others	437.2	495.0	57.8	13.2%
      Total revenue	922.4	1,002.9	80.5	8.7%

      Enterprise segment revenue increased by ¥80.5 billion (8.7%) year on year to ¥1,002.9 billion. Within Enterprise segment revenue, mobile revenue increased by ¥24.8 billion (7.8%) to ¥340.6 billion, fixed-line revenue decreased by ¥2.1 billion (1.2%) to ¥167.3 billion, and business solution and others revenue increased by ¥57.8 billion (13.2%) to ¥495.0 billion.

      The increase in mobile revenue was mainly due to an increase in mobile device sales from a growth in the number of mobile service subscribers, as well as an increase in telecommunications revenue.

      The decrease in fixed-line revenue was mainly due to a decrease in the number of telephone service subscribers.

      The increase in business solution and others revenue was mainly due to increased revenue mainly from cloud and security solutions as a result of capturing enterprise customers' demand for digitalization.

      Operating expenses were ¥810.5 billion, an increase of ¥58.4 billion (7.8%) year on year. This increase was mainly due to an increase in costs following the abovementioned increase in business solution and others revenue.

      As a result, segment income increased by ¥22.1 billion (13.0%) year on year to ¥192.4 billion.

3. Distribution Segment OVERVIEW

   In the Distribution segment, the Group provides cutting-edge products and services that quickly capture the ever-changing market environment. For enterprise customers, the Group offers products and services primarily addressing cloud services and advanced technologies including AI. For individual customers, the Group undertakes the planning and provision of products and services across a wide range of areas such as software, mobile accessories, and IoT products, as a manufacturer and a distributor.

   FINANCIAL RESULTS

   Fiscal Year Ended March 31

   (Billions of yen)

   	2025	2026	Change	Change %
   Revenue	889.5	1,056.3	166.8	18.8%
   Operating expenses1	859.1	1,021.1	162.0	18.9%
   Of which, depreciation and amortization	4.3	4.1	(0.2)	(3.9)%
   Segment income	30.4	35.3	4.8	15.9%

   Note:

   1. Operating expenses include cost of sales, selling, general and administrative expenses, other operating income, and other operating expenses.

      Distribution segment revenue increased by ¥166.8 billion (18.8%) year on year to ¥1,056.3 billion. This increase was mainly due to solid growth in ICT related products for enterprise customers and recurring revenue products such as cloud and SaaS, which have been strategic areas of focus, as well as increased sales of PCs due to GIGA School Program Phase 2 and migration from Windows 10, which is reaching the end of its support, and solid growth in products for consumers.

      Operating expenses were ¥1,021.1 billion, an increase of ¥162.0 billion (18.9%) year on year. This increase was mainly due to an increase in cost of sales associated with the increase in revenue.

      As a result, segment income increased by ¥4.8 billion (15.9%) year on year to ¥35.3 billion.

4. Media & EC Segment OVERVIEW

   In the Media & EC segment, the Group offers services that center on media and commerce, covering online to offline services in a comprehensive manner. In the media field, the Group provides advertising-related services on its comprehensive Internet service, Yahoo! JAPAN, and communication app, LINE. In the commerce field, the Group provides online shopping services such as Yahoo! JAPAN Shopping and ZOZOTOWN, and reuse services such as Yahoo! JAPAN Auction. In the strategy field, the Group provides services centered on FinTech, which the Group is working to develop into new drivers of earnings alongside media and commerce.

   FINANCIAL RESULTS

   Fiscal Year Ended March 31

   (Billions of yen)

   	2025	2026	Change	Change %
   Revenue	1,628.9	1,668.0	39.1	2.4%
   Operating expenses1	1,370.0	1,427.6	57.5	4.2%
   Of which, depreciation and amortization	158.6	169.4	10.8	6.8%
   Segment income	258.8	240.4	(18.4)	(7.1)%

   Note:

   * From the three months ended June 30, 2025, PayPay Bank Corporation, which was previously classified under the "Media & EC segment," has been transferred to the "Financial segment." As a result, the figures for the fiscal year ended March 31, 2025 have been retrospectively adjusted.

   1. Operating expenses include cost of sales, selling, general and administrative expenses, other operating income, and other operating expenses.

      Breakdown of Revenue

      Fiscal Year Ended March 31

      (Billions of yen)

      	2025	2026	Change	Change %
      Media	723.9	728.7	4.8	0.7%
      Commerce	846.8	855.2	8.4	1.0%
      Strategy	51.1	73.8	22.7	44.4%
      Other	7.1	10.2	3.2	44.8%
      Total revenue	1,628.9	1,668.0	39.1	2.4%

      Note:

      * From the three months ended June 30, 2025, in addition to the LY Group revising its management categories, PayPay Bank Corporation, which was previously classified under the "Media & EC segment," has been transferred to the "Financial segment." As a result, the revenue breakdown of all service categories in the "Media & EC segment" for the fiscal year ended March 31, 2025 has been retrospectively adjusted.

      Media & EC segment revenue increased by ¥39.1 billion (2.4%) year on year to ¥1,668.0 billion. Within Media & EC segment revenue, media revenue increased by ¥4.8 billion (0.7%) to ¥728.7 billion, commerce revenue increased by ¥8.4 billion (1.0%) to ¥855.2 billion, strategy revenue increased by ¥22.7 billion (44.4%) to ¥73.8 billion, and other revenue increased by ¥3.2 billion (44.8%) to ¥10.2 billion.

      The increase in media revenue mainly reflected an increase in revenue from account advertising, despite a decrease in revenue from search advertising.

      The increase in commerce revenue was mainly due to the consolidation of LINE MAN CORPORATION PTE. LTD. and BEENOS Inc., as well as an increase in transaction value of the ZOZO Group (ZOZO, Inc. and its subsidiaries), despite a decrease in transaction value affected by the system outage at ASKUL Corporation in October 2025.

      The increase in strategy revenue mainly reflected the consolidation of LINE Bank Taiwan Limited.

      Operating expenses were ¥1,427.6 billion, an increase of ¥57.5 billion (4.2%) year on year. The reasons for variance are as follows:

      - Operating expenses decreased by ¥15.7 billion due to the absence of gains on loss of control over subsidiaries and the recognition of remeasurement gains on step acquisitions.

      			(Billions of yen)
      	Fiscal Year Ended	March 31
      	2025	2026	Change
      Remeasurement gain on step acquisitions2	-	(58.9)	(58.9)
      Gain on loss of control over subsidiaries3	(43.2)	-	43.2
      Total	(43.2)	(58.9)	(15.7)

      Note:

   2. Due to the consolidation of LINE MAN CORPORATION PTE. LTD. and LINE Bank Taiwan Limited by LY Corporation, a remeasurement gain on step acquisition was recognized.

   3. Gains on loss of control over subsidiaries for IPX Corporation, LINE NEXT Corporation, and ValueCommerce Co., Ltd. were recorded.

      • Operating expenses at the ASKUL Group (ASKUL Corporation and its subsidiaries) decreased due to the abovementioned system outage.

      • Operating expenses increased mainly due to the consolidation of LINE MAN CORPORATION PTE. LTD., LINE Bank Taiwan Limited, and BEENOS Inc.

      • Operating expenses increased due to an increase in sales promotion expenses.

        As a result, segment income decreased by ¥18.4 billion (7.1%) year on year to ¥240.4 billion.

5. Financial Segment OVERVIEW

   In the Financial segment, the Group provides cashless payment services such as QR code payments and credit card services, development and provision of marketing solutions for merchants, financial services such as banking business and asset management, and provision of payment processing services offering one-stop payment solutions for diversified payment methods including credit cards, electronic money, and QR codes.

   FINANCIAL RESULTS

   Fiscal Year Ended March 31

   (Billions of yen)

   	2025	2026	Change	Change %
   Revenue	325.5	404.5	79.0	24.3%
   Operating expenses1	283.8	318.2	34.4	12.1%
   Of which, depreciation and amortization	28.2	32.3	4.1	14.5%
   Segment income	41.7	86.3	44.6	107.1%

   Note:

   * From the three months ended June 30, 2025, PayPay Bank Corporation, which was previously classified under the "Media & EC segment," has been transferred to the "Financial segment." As a result, the figures for the fiscal year ended March 31, 2025 have been retrospectively adjusted.

   1. Operating expenses include cost of sales, selling, general and administrative expenses, other operating income, and other operating expenses.

Financial segment revenue increased by ¥79.0 billion (24.3%) year on year to ¥404.5 billion. This increase was mainly due to an increase in gross merchandise value of QR code payments and credit card services provided by PayPay Corporation and PayPay Card Corporation.

Operating expenses were ¥318.2 billion, an increase of ¥34.4 billion (12.1%) year on year. This increase was mainly due to an increase in sales promotion expenses related to point rewards, etc., driven by the aforementioned increase in gross merchandise value, as well as an increase in expenses associated with the listing.

As a result, segment income increased by ¥44.6 billion (107.1%) year on year to ¥86.3 billion.