Announcement Regarding Simplified Absorption-Type Company Split with Wholly Owned Subsidiary IDC Frontier Inc.

Overview of Organizational Restructuring

SoftBank Group Corp. resolved at its Board of Directors meeting on December 25, 2025, to execute a simplified absorption-type company split with its wholly owned subsidiary IDC Frontier Inc., effective April 1, 2026. This absorption-type split consists of (i) an absorption-type split by which SoftBank will succeed customer contracts related to IDC Frontier's data center business and cloud and network services, and (ii) an absorption-type split by which SoftBank will transfer its cloud services “White Cloud ASPIRE” and “White Cloud Desktop Service Standard” to IDC Frontier. Legally, SoftBank will conduct a simplified split under Article 796, Paragraph 2 of the Companies Act, while IDC Frontier will proceed with an abbreviated split under Article 784, Paragraph 1. No shareholders' meeting will be held.

Purpose and Background of the Restructuring

This absorption-type company split aims to strengthen the in-house capabilities of next-generation social infrastructure, in line with SoftBank’s long-term vision declared in its Medium-Term Management Plan announced in May 2023 to become a company providing indispensable next-generation social infrastructure for a digital society. The data center business is increasingly important as core infrastructure supporting the AI society and will be succeeded and enhanced by SoftBank. Meanwhile, the cloud business will be transferred to IDC Frontier, promoting competitive strength through optimal allocation of business functions and clarifying roles. This enables the consolidation of engineering resources, establishment of development and operation systems for AI data centers, and strengthening of cloud services, thereby laying the foundation for the Group’s sustainable growth.

Impact on Shareholders and Investors

This absorption-type company split is a simplified split between wholly owned subsidiaries, with no allocation of shares or other cash consideration. There is no change to capital stock or shareholder composition. The impact on consolidated financial results is expected to be minor. No significant changes to the consolidated earnings forecast for the fiscal year ending March 2026 are anticipated. For investors, this restructuring is significant in terms of establishing a medium-to-long-term growth foundation through strengthening next-generation social infrastructure, while short-term financial impact is limited.