SoftBank Group Corp.

The investment portfolio, centered on AI technology companies, carries the risk that the value of held equity securities may fluctuate significantly due to sector-specific factors in addition to macroeconomic trends, monetary policy, and stock market movements. In particular, Arm shares account for a high proportion of the value of held equity securities, and fluctuations in Arm's share price have a direct and significant impact on NAV and LTV. The Company aims for stable financial management and prepares for such risks by maintaining its financial policy, including LTV management.

As of the end of March 2026, the Company had invested a cumulative total of US$34.6 billion in OpenAI through SVF2, and has decided on an additional investment of US$30.0 billion, having entered into a bridge facility with a total borrowing limit of US$40.0 billion. While the Company's policy is to prioritize refinancing to long-term funding or repayment during FY2027 (ending March 2027), depending on market conditions, this may not proceed as planned, and as a minority shareholder of OpenAI, the Company's influence over its management strategy is limited. Combined with intensifying AI competition and uncertainty over the realization of an IPO, this could have a material impact on the value of the Company's held equity securities and its cash flow.

While the Company utilizes a variety of funding methods, including financial institution borrowings, corporate bonds, asset-backed finance, and sales of held assets, interest rate fluctuations, changes in credit ratings, and a decline in market liquidity may make it difficult to raise funds at the intended timing, scale, and terms. Asset-backed finance secured by Arm shares and other assets also carries the risk that, if the value of collateral declines, the Company may be required to post additional cash collateral or make early repayment. The Company conducts advance studies assuming various scenarios and strives to maintain sufficient liquidity on hand in line with its financial policy.

Against the backdrop of US-China tensions, the situation in the Middle East, and the Russia-Ukraine situation, moves in various countries to tighten investment regulations, export controls, and tariff policies from a national security perspective are accelerating, which may constrain the Company's investment activities and the business development of its portfolio companies. There is a risk that investment restrictions on specific countries or companies, or difficulty obtaining regulatory approval, may prevent the Company from executing investments or exits as expected, or may delay investment recovery or worsen its terms. The Company gathers information with advice from external advisors and continuously monitors the concentration of its investment portfolio by country, region, and industry.

Large-scale AI data center development in the United States and France, including the Stargate Project (approximately 1.2GW in Texas, 10GW in Ohio, and 5GW in France), requires substantial funding, and the Company's policy is to utilize external financing to limit the burden on its own capital. However, there is a risk that projects may not proceed as planned if external financing cannot be secured at the intended timing, scale, and terms, or due to other factors. Delays or interruptions to these projects could affect the Company's overall strategic investment plans.

In addition to competition from existing and emerging architectures such as x86 and RISC-V, Arm's entry into proprietary designed silicon chips (Arm AGI CPU) has created a risk of conflict with major customers. Tightened U.S. export control regulations have restricted the provision of licenses to certain regions, including the Chinese market (via Arm China), and combined with dependence on a small number of major customers who account for the majority of revenue, this raises concerns about an adverse impact on performance. Arm strives to mitigate these risks by maintaining relationships with regulatory authorities, monitoring policy trends, and strengthening cooperation with major semiconductor companies.

Amid a heightened threat of cyberattacks against the backdrop of the international situation, following the unauthorized access incident at LINE Yahoo in 2023, in October 2025 a ransomware attack on group company ASKUL caused a system outage that affected part of its business activities. If cyberattacks, unauthorized access, or internal misconduct result in the leakage of customer information or service disruptions, this could lead to reduced trust and corporate image, the occurrence of damages and system remediation costs, and difficulty in retaining and acquiring customers. The Company implements organizational, technical, and human security measures tailored to risk under its CISO, and LINE Yahoo completed the implementation of its key technical and organizational measures by the end of March 2026.

If any unforeseen event were to affect Representative Director, Chairman & CEO Masayoshi Son, who plays a central role in the Company's management, this could disrupt the Company's overall activities, including investment decisions, business strategy, and external negotiations. A management structure that is highly dependent on a specific individual poses a risk to the continuity of decision-making as a strategic holding company for investment. The Company has formulated a contingency plan and regularly discusses succession planning at the Nomination and Compensation Committee.

The SoftBank Corp. group operates in a wide range of areas within the information industry, including telecommunications, internet, and payment services, but the strengthening price competitiveness of competitors and the rapid advancement of generative AI and AI agent technologies could threaten its existing business models, potentially leading to a decline in the number of subscriptions and ARPU. Following its designation as a Specified Critical Infrastructure Operator under the Economic Security Promotion Act (November 2023), there is also a risk of administrative measures such as corrective or suspension orders if its response to government review is deemed insufficient. The SoftBank Corp. group continuously implements measures such as investigating the latest technology trends, conducting proof-of-concept trials, and considering alliances.

Equity holdings and other assets held by SVF carry a risk of not being monetized as originally planned, due to the large scale of investment and low liquidity, as well as the influence of economic, legal, regulatory, and political factors. Contractual sale restrictions or deteriorating market conditions may make it difficult to exit at the intended timing and price, potentially delaying the realization of fund returns. The fund management subsidiaries carefully deliberate exit strategies at investment committees, conduct stress tests assuming various market conditions, and address these risks by setting a long duration for SVF.