This English translation of the financial report was prepared for reference purposes only and is qualified in its entirety by the original
Japanese version. The financial information contained in this report is derived from our unaudited consolidated financial statements
appearing in item 2 of this report.

SOFTBANK CORP.
CONSOLIDATED FINANCIAL REPORTFor the three-month period ended June 30, 2012
Tokyo, July 31, 2012

1. FINANCIAL HIGHLIGHTS(1) Results of Operations(Percentages are shown as year-on-year changes)(Millions of yen; amounts less than one million yen are omitted.)

Net sales

Operating income

Ordinary income

Net income

Amount%Amount%Amount%Amount%Three-month period ended
June 30, 2012

¥766,902

0.3¥192,124

9.3¥180,97819.7¥90,661(4.4)

Three-month period ended
June 30, 2011

¥764,237

9.0¥175,825

12.3¥151,230

19.2¥94,791387.6

Note: Comprehensive income
Three-month period ended June 30, 2012:
Three-month period ended June 30, 2011:

Three-month period ended
June 30, 2012
Three-month period ended
June 30, 2011

¥99,164 million (4.7) %¥104,007 million 329.6%

Net income
per share－basic(yen)

Net income
per share－diluted(yen)¥82.53¥80.88¥87.35¥83.91(2) Financial Condition(Millions of yen; amounts less than one million yen are omitted.)

Total assets

Total equity

Equity ratio (%)

As of June 30, 2012

¥4,628,074¥1,423,286

20.0

As of March 31, 2012

¥4,899,705¥1,435,640

19.1

Note: Shareholders’equity
As of June 30, 2012:
As of March 31, 2012:¥923,448 million¥936,693 million

2. Dividends(Record date)Fiscal year ended
March 31, 2012
Fiscal year ending
March 31, 2013
Fiscal year ending
March 31, 2013
(Forecasted)

First quarter

Second quarter

Dividends per share
Third quarter

Fourth quarter

Total

(yen)

(yen)

(yen)

(yen)

(yen)

-

0.00

-

40.00

40.00

20.00

-

20.00

40.00

-

Note:
Revision of forecasts on the dividends: Yes
The Company has distributed its surplus as a year-end dividend annually, and since sufficient profit is expected for the year ending March 31, 2013
as well, it has decided to implement an interim dividend to increase opportunities to return profit to shareholders. This applies to shareholders onrecord as of the base date of September 30, 2012.

3. Forecasts on the consolidated operation results for the fiscal year ending in March 2013 (April 1, 2012 – March 31, 2013)
For the fiscal year ending March 31, 2013, the SOFTBANK Group will continue to focus on network expansion and customer
acquisition in the Mobile Communications segment. Although this will increase the SOFTBANK Group’s expenses, the customer
base is expected to continue to expand steadily. As a result, the Group is forecasting a year-on-year increase in both net sales andoperating income, and expects operating income to exceed ¥700 billion.

* Notes(1) Significant changes in scope of consolidation (Changes in scope of consolidation of specified subsidiaries):(2) Application of special accounting methods for preparation for the consolidated financial statements:

NoNo(3) Changes in accounting policies, accounting estimates and retrospective restatements in the consolidated financial statements[1] Changes due to revisions in accounting standards:
No[2] Changes other than those in [1]:No
[3] Changes in accounting estimates:
No[4] Retrospective restatements:
No(4) Number of shares issued (Common stock)[1] Number of shares issued (including treasury stock):
As of June 30, 2012:
As of March 31, 2012:

1,107,728,781 shares
1,107,728,781 shares[2] Number of treasury stock:
As of June 30, 2012:
As of March 31, 2012:

9,214,600 shares
9,213,962 shares[3] Weighted average number of common stock:
As of June 30, 2012:
As of June 30, 2011:

1,098,514,638 shares
1,085,217,816 shares* Implementation status of quarterly review proceduresThis quarterly consolidated financial report is not subject to quarterly review procedures based on Financial Instruments and Exchange Act and thereview procedures for the quarterly consolidated financial statements were being conducted when this report was disclosed.
* Note to forecasts on the consolidated operating results and other items
The forecast figures are estimated based on the information which SOFTBANK CORP. is able to obtain at the present point and assumptions which are
deemed to be reasonable. However, actual results may be different due to various factors. Please refer to page 17 “1. Qualitative Information
Regarding Three-month Period Results (3) Qualitative Information Regarding Consolidated Earnings Forecasts” for details of notes to precondition andusage for forecasts.
SOFTBANK CORP.'s Earnings Results Briefing will be held for media, institutional investors, and financial institutions on July 31, 2012 followed by
the Analysts Briefing for institutional investors and financial institutions on August 1, 2012. The Earnings Results Briefing will be streamed live on the
Company's Web site in Japanese and English at (http://www.softbank.co.jp/en/irinfo/). The material used in the Analysts Briefing will be uploaded the
day before the briefing and the video on demand will be made available as soon as possible on the Company’s Web site afterwards.

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the three-month period ended June 30, 2012

(Appendix)
Contents
1.

2.

Qualitative Information Regarding Three-month Period Results(1) Qualitative Information Regarding Consolidated Results of Operations
1. Consolidated Results of Operations
2. Results by Business Segment（Reference 1: Principal Operational Data）（Reference 2: Definition and Calculation Method of ARPU, etc., in the Mobile
Communications Business）（Reference 3: Capital Expenditure and Depreciation）(2) Qualitative Information Regarding Consolidated Financial Position
1. Assets, Liabilities, and Equity
2. Cash Flows（Reference: Major Financing Activities）(3) Qualitative Information Regarding Consolidated Earnings Forecasts
Consolidated Financial Statements(1) Consolidated Balance Sheets(2) Consolidated Statements of Income and Consolidated Statements of Comprehensive
Income(3) Consolidated Statements of Cash Flows(4) Significant Doubt About Going Concern Assumption(5) Notes(6) Segment Information(7) Significant Changes in Shareholders’ Equity

1

p. 2
p. 2
p. 2
p. 4
p. 9
p.11
p.12
p.13
p.13
p.16
p.17
p.17
p.18
p.18
p.20
p.22
p.24
p.24
p.25
p.26

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the three-month period ended June 30, 20121.

Qualitative Information Regarding Three-month Period Results(1) Qualitative Information Regarding Consolidated Results of Operations
1.

Consolidated Results of Operations< Overview of results for the three-month period from April 1, 2012 to June 30, 2012>
For the three-month period ended June 30, 2012 (hereafter “the period”), the SOFTBANK Group (hereafter“the Group”) achieved consolidated net sales of ¥766,902 million, a ¥2,665 million (0.3%) increase compared withthe same period of the previous fiscal year (April 1, 2011 to June 30, 2011, hereafter “year on year”), with a¥16,299 million (9.3%) increase in operating income to ¥192,124 million.
(19.7%) to ¥180,978 million.

Ordinary income grew ¥29,748 million

Net income declined ¥4,129 million (4.4%) to ¥90,661 million.

Note:
Definition of terms: as used in this consolidated financial report for the three-month period from April 1, 2012 to June 30, 2012, references
to “the Company,” “the Group,” and “the SOFTBANK Group” are to SOFTBANK CORP. and its consolidated subsidiaries except as thecontext otherwise requires or indicates.

The main factors affecting earnings for the period were as follows:(a) Net Sales
Net sales totaled ¥766,902 million, for a ¥2,665 million (0.3%) year-on-year increase.

This was mainly due toincreases in sales in the Fixed-line Telecommunications and the Internet Culture segments, which outweighed adecrease in sales in the mainstay Mobile Communications segment.

(b) Cost of Sales
Cost of sales declined ¥833 million (0.2%) year on year to ¥340,506 million.

This was primarily due to adecrease in the cost of goods in line with an increase in the proportion of handsets sold that have lower cost of
goods among overall handset sales.

Meanwhile, depreciation and amortization increased in the Mobile

Communications segment, mainly due to the installation of additional base stations.

(c) Selling, General, and Administrative Expenses
Selling, general, and administrative expenses declined by ¥12,800 million (5.2%) year on year to ¥234,271 million.
This was mainly because of a decrease in the total amount of sales commissions1 in the Mobile Communications
segment, resulting from an increase in the proportion of handsets sold having a lower acquisition cost per
subscriber among overall handset sales.

(d) Operating Income
As a result, operating income totaled ¥192,124 million, for a ¥16,299 million (9.3%) year-on-year increase.
operating margin rose 2.1 percentage points year on year to 25.1%.

1

Sales commission paid to sales agents per new subscription and upgrade.

2

The

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the three-month period ended June 30, 2012(e) Non-operating Income / Expenses
Non-operating income totaled ¥2,976 million, a ¥285 million (8.8%) year-on-year decrease. Non-operating
expenses were ¥14,122 million, a ¥13,735 million (49.3%) year-on-year decrease. Interest expense decreased by¥13,363 million as SOFTBANK MOBILE Corp. paid off its SBM loan2 in October 2011.

(f) Ordinary Income
Ordinary income therefore totaled ¥180,978 million, for a ¥29,748 million (19.7%) year-on-year increase.

(g) Special Income
Special income totaled ¥3,336 million, for a ¥17,020 million year-on-year decrease.
a decrease in dilution gain from changes in equity interest.

This was mainly because of

In the same period of the previous fiscal year, adilution gain from changes in equity interest of ¥15,424 million was recorded mainly in relation to the Company’s
equity method affiliate Renren Inc.’s listing on the New York Stock Exchange.

(h) Special Loss
Special loss was ¥3,503 million, for a ¥3,123 million year-on-year increase.

(i) Income Taxes
Provisions for current income taxes were ¥57,719 million and provisions for deferred income taxes were ¥15,403
million.

Total income taxes increased ¥12,922 million year on year to ¥73,122 million.

(j) Minority Interests in Net Income
Minority interests in net income totaled ¥17,027 million, mainly related to net income recorded at Yahoo Japan
Corporation.

(k) Net Income
As a result of the above, net income totaled ¥90,661 million, for a ¥4,129 million (4.4%) year-on-year decrease.

(l) Comprehensive Income
Comprehensive income totaled ¥99,164 million, for a ¥4,842 million (4.7%) year-on-year decrease.

Of this,comprehensive income attributable to owners of the parent was ¥82,109 million, for a ¥5,858 million (6.7%)
year-on-year decrease, and comprehensive income attributable to minority interests was ¥17,145 million, for a¥1,015 million (6.3%) year-on-year increase.

2

The loan procured in November 2006 under a whole business securitization scheme as part of the loan for procurement of the acquisition financefor Vodafone K.K. (currently SOFTBANK MOBILE Corp.). The loan was fully repaid in October 2011.

3

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the three-month period ended June 30, 2012

2. Results by Business Segment
Note:
Principal operational data are shown on pages 9-10 “(Reference 1: Principal Operational Data).”(a) Mobile Communications(Millions of yen)Three-month Period
Ended
June 30, 2011

Three-month Period
Ended
June 30, 2012

Net sales

514,090506,211(7,879)(1.5%)

Operating income

116,491

128,106

11,614

10.0%

ChangeChange %3・ 753,100 net subscriber additions

for the period
for the period was ¥4,020 a ¥190 year-on-year decrease.
Data ARPU amounted to ¥2,540, a ¥100 year-on-year increase.
4・ ARPU< Revenue Recognition >In the Mobile Communications segment, net sales are mainly generated through telecom service revenue and salesof mobile handsets. The telecom services consist of voice and data services and are recognized as revenue whenservices are provided to customers, based upon basic flat-rate monthly charges plus usage of traffic in accordancewith price plans subjected to discounts.
Sales of mobile handsets are recognized when merchandise is shipped to sales agents. The agents sell themobile handsets to the customers mainly by installment payments over a period of 24 months. SOFTBANKMOBILE Corp. purchases the installment sales receivables from the agents and collects the installment salesreceivables during the 24 months.
Activation fees from new customers are recognized as revenue when services are activated.

< Overview of Operations >The segment’s net sales decreased by ¥7,879 million (1.5%) year on year to ¥506,211 million.

The main factor

behind the decrease was a decline in sales of mobile handsets, which outweighed increased telecom service
revenue resulting from steady growth in the number of mobile phone subscribers. The decline in sales of mobile
handsets was due to an increase in the proportion of handsets shipped5 having lower unit prices, and a temporary
decline in handsets shipped due to the impending launch of 900 MHz band communication services in July 2012.
The segment’s operating expenses decreased ¥19,493 million (4.9%) year on year to ¥378,105 million. Thisdecrease was mainly due to declines in the cost of goods and sales commissions in line with an increased
proportion of handsets sold that have lower cost of goods and acquisition cost per subscriber among overallhandset sales.
34
5

Meanwhile, the segment recorded higher depreciation and amortization, mainly relating to the

The number of net subscriber additions includes prepaid mobile phones and communication module service subscribers.
Net communication module service subscriber additions for the period totaled 107,200.
For definition and calculation method of ARPU, refer to page 11 “(Reference 2: Definition and Calculation Method of ARPU, etc., in the Mobile
Communications Business).”
Handsets shipped: handsets shipped (sold) to agents

4

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the three-month period ended June 30, 2012

installation of additional base stations.
Operating income increased by ¥11,614 million (10.0%) year on year to ¥128,106 million.

<Number of Mobile Phone Subscribers>
Net subscriber additions (new subscribers minus cancellations) for the period totaled 753,100.

This wasprimarily the result of steady sales of smartphones such as iPhone6 and AndroidTM 7 handsets, as well as increased
sales of iPad,6 mobile data communications devices, and Mimamori Phone (handset with security buzzer).

As aresult, the cumulative number of subscribers8 at the end of the period stood at 29,702,100, raising SOFTBANKMOBILE Corp.’s cumulative subscriber share by 1.4 percentage points year on year, to 23.6%.9< Number of Mobile Handsets Shipped/ Sold >Handsets shipped for the period decreased by 134,000 year on year to 2,359,000. The decrease was mainly due
to a temporary decline in handsets shipped due to the impending launch of 900 MHz band communication services
in July 2012.
The number of mobile handsets sold10 for the period increased by 36,000 year on year to 2,586,000. The
increase was mainly due to steady sales of smartphones, iPad, mobile data communications devices, andMimamori Phone, while conventional mobile handsets sold decreased.

Of mobile handsets sold, newsubscriptions increased by 100,000 year on year to 1,663,000, while handset upgrades decreased by 64,000 year
on year to 923,000.

<ARPU>
ARPU for the period (based on cumulative subscribers including communication modules)decreased ¥190 year on
year to ¥4,020. Out of this, voice ARPU declined ¥300 year on year to ¥1,480 and data ARPU rose ¥100 year on
year to ¥2,540.
The decline in voice ARPU mainly reflects dilution due to an increase in devices that do not have voicecommunication functionality (such as iPad, mobile data communications devices) and a decrease in revenues fromincoming calls,11 which was the result of a reduction in interconnection charges between operators. On the other
hand, the increase in data ARPU was mainly the result of the continuing increase in the number of high data
ARPU smartphone subscribers, although the increase in subscribers to low data usage products such as Mimamori
Phone has also had a dilution effect on data ARPU.

6
7
8
9
10
11

iPhone and iPad are trademarks of Apple Inc. The iPhone trademark is used under license from Aiphone K.K.
Android is a trademark or a registered trademark of Google Inc.
The cumulative number of subscribers includes prepaid mobile phones and communication module service subscribers.
of communication module service subscribers at the end of the period was 2,157,200.

The cumulative number

Calculated by the Company based on Telecommunications Carriers Association statistical data.
Calculated from the numbers of subscribers of NTT DOCOMO, INC., KDDI CORPORATION, and SOFTBANK MOBILE Corp.
Handsets sold: total of new subscriptions and handset upgrades
Interconnection charges received from other operators for voice calls from their customers on their network to SoftBank mobile phones as acharge for the services provided in the SOFTBANK MOBILE Corp. service area.

5

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the three-month period ended June 30, 2012

< Churn Rate and Upgrade Rate >The churn rate12 for the period was 1.03%, which was 0.04 of a percentage point lower year on year. This wasprimarily because of a lower churn rate among corporate customers.
The upgrade rate12 for the period was 1.05%, which was 0.23 of a percentage point lower year on year. Thiswas mainly because compared to the same period of the previous fiscal year less new handset models werereleased during the period. In addition, the iPhone upgrade campaign conducted from October 2011 enhanced
iPhone upgrades during the previous fiscal year.

< Average Acquisition and Upgrade Cost per Subscriber>
The average acquisition cost per subscriber13 for the period declined ¥9,700 year on year to ¥26,500. This was
mainly due to an increased proportion of handsets sold that have a lower acquisition cost per subscriber among
overall mobile handset sales.
The average upgrade cost per subscriber14 for the period decreased ¥2,000 to ¥27,000 year on year.

12
13
14

For definition and calculation of the churn and upgrade rates, see page 11 “(Reference 2: Definition and Calculation Method of ARPU, etc., in the
Mobile Communications Business).”
Average commission paid to sales agents per new subscription. New subscriptions include prepaid mobile phones and communication modules.
Average commission paid to sales agents per handset upgrade. Upgrades include communication modules.

6

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the three-month period ended June 30, 2012(b) Broadband Infrastructure(Millions of yen)Three-month Period
Ended
June 30, 2011

Three-month Period
Ended
June 30, 2012

Net sales

44,01941,364(2,655)(6.0%)

Operating income

10,221

9,459

(761)

(7.4%)The segment’s net sales decreased by ¥2,655 million (6.0%) year on year to ¥41,364 million.

This was mainly

ChangeChange %<Overview of Operations>because the share of sales accounted for by Yahoo! BB hikari with FLET'S,15 which has a relatively lower
ARPU,16 at the end of the period increased. On the other hand, the cumulative number of Yahoo! BB subscribers(total of the cumulative number of Yahoo! BB ADSL subscribers and the cumulative number of Yahoo! BB hikariwith FLET’S subscribers17) continued to increase.
Operating income decreased by ¥761 million (7.4%) year on year to ¥9,459 million.

This was mainly due to adecrease in net sales.
The cumulative number of Yahoo! BB subscribers at the end of the period totaled 4,238,000 for an increase of
29,000 from the previous fiscal year-end. Out of this the cumulative number of Yahoo! BB ADSL subscribers
stood at 2,467,000, a decrease of 134,000 from the previous fiscal year-end, and the cumulative number of Yahoo!
BB hikari with FLET’S subscribers totaled 1,771,000, an increase of 163,000 from the previous fiscal year-end.

(c) Fixed-line Telecommunications(Millions of yen)Three-month Period
Ended
June 30, 2011

Three-month Period
Ended
June 30, 2012

Net sales

87,492

92,438

4,945

5.7%

Operating income

12,913

15,598

2,685

20.8%

ChangeChange %<Overview of Operations>
The segment’s net sales increased by ¥4,945 million (5.7%) year on year to ¥92,438 million. Growth in revenues
from solutions services for corporate customers such as data center services contributed to an increase of net sales
to third parties. In addition, inter-segment sales increased due to provision of telecommunication lines to Group
companies such as SOFTBANK MOBILE Corp.
Operating income increased by ¥2,685 million (20.8%) to ¥15,598 million. This was due to the increase in net
15

16
17

A broadband connection service that combines the Internet connection service Yahoo! BB and the FLET’S HIKARI fiber-optic connection
provided by NIPPON TELEGRAPH AND TELEPHONE EAST CORPORATION (“NTT East”) and NIPPON TELEGRAPH AND
TELEPHONE WEST CORPORATION (“NTT West”). FLET’S and FLET’S HIKARI are registered trademarks of NTT East and NTT West.
Average Revenue Per User: average revenue per user (rounded to the nearest ¥10)
Number of users for which connection construction for FLET’S HIKARI line at central office of NTT East or NTT West is complete and who areprovided with services.

7

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the three-month period ended June 30, 2012

sales, combined with a decrease in lease payments for OTOKU Line equipment and a decrease in interconnection
charges paid to other operators at SOFTBANK TELECOM Corp., following a reduction in interconnection
charges between operators.

(d) Internet Culture(Millions of yen)Three-month Period
Ended
June 30, 2011

Three-month Period
Ended
June 30, 2012

Net sales

69,61075,434

5,824

8.4%

Operating income

36,605

40,113

3,507

9.6%

The segment’s net sales increased by ¥5,824 million (8.4%) year on year to ¥75,434 million.

This was mainly

ChangeChange %<Overview of Operations>due to revenue growth at Yahoo Japan Corporation driven by listing advertising. Especially revenue from listing
advertising via smartphones increased significantly.

In addition, display advertising from transportation, leisure,communications services, and makeup and toiletry product-related companies increased leading to revenue growth.
Growth in information listing services such as job vacancy information, data center and game-related services also
contributed to higher overall sales.
Operating income increased by ¥3,507 million (9.6%) year on year to ¥40,113 million. This was primarily the
result of an increase in net sales.

8SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the three-month period ended June 30, 2012

(Reference 1: Principal Operational Data）(a) Mobile Communications
Fiscal Year Ending
March 31, 2013

Fiscal Year Ended March 31, 2012
Q1

Q2

Q3

Q4

Q1

Full Year( Thousands)

Net additions18(Postpaid)(Prepaid)
Market share19
among 4 operators (%)
Market share19
among 3 operators (%)

730.0
697.5
32.5

759.7
744.8
14.9

936.9
943.5
(6.6)

1,113.7
1,131.0(17.3)

3,540.3
3,516.8
23.5

753.1
772.1
(19.0)

42.7

40.4

-

-

-

-

49.1

46.2

42.4

45.8

45.6

47.5

26,138.7

26,898.4

27,835.3

28,949.0

29,702.1

21.6

21.8

-

-

-

22.2

22.5

22.9

23.3

23.6

2,493

2,395

3,770

3,025

11,682

2,359

2,550
1,564
987

2,665
1,624
1,040

3,787
1,848
1,938

3,300
2,127
1,173

12,301
7,163
5,138

2,586
1,663
923

ARPU22

4,210

4,310

4,230

3,890

4,150

4,020

(Voice)23(Data)

1,780
2,440

1,780
2,520

1,700
2,530

1,350
2,530

1,650
2,510

1,480
2,540

36,20030,80025,70029,40030,30026,50029,00028,60025,80026,30027,10027,000

Churn rate26(Postpaid)

1.08
1.03

1.09
1.02

1.11
1.04

1.20
1.10

1.12
1.05

1.03
0.96

(% per month)
Upgrade rate26

1.28

1.31

2.36

1.38

1.59

1.05

(Thousands)

Cumulative
subscribers18
Market share19
among 4 operators (%)
Market share19
among 3 operators (%)(Thousands)

Number ofhandsets shipped20(Thousands)

Number ofhandsets sold21(New subscriptions)(Handset upgrades)(Yen per month)(Yen)

Average acquisition cost
per subscriber24(Yen)

Average upgrade cost
per subscriber25(% per month)

18
19

20
21
22
23
24
25
26

Includes the number of prepaid mobile phones and communication module service subscribers.
Calculated by the Company based on Telecommunications Carriers Association statistical data.
4 operators: NTT DOCOMO, INC., KDDI CORPORATION, eAccess Ltd. and SOFTBANK MOBILE Corp.
3 operators: NTT DOCOMO, INC., KDDI CORPORATION, and SOFTBANK MOBILE Corp.
From December 2011, net additions and cumulative subscribers of eAccess Ltd. are no longer disclosed to the Telecommunications Carriers
Association. Therefore, from the third quarter of the fiscal year ended March 2012, the market share among 4 operators has not been calculated.
Handsets shipped: handsets shipped (sold) to agentsHandsets sold: total of new subscriptions and handset upgrades
For definition and calculation method of ARPU, refer to page 11 “(Reference 2: Definition and Calculation Method of ARPU, etc., in the Mobile
Communications Business).”
Calculated including basic monthly charge.
Average commission paid to sales agents per new subscription. New subscriptions include prepaid mobile phones and communication modules.
Average commission paid to sales agents per handset upgrade. Upgrades include communication modules.
For definition and calculation of the churn and upgrade rates, see page 11 “(Reference 2: Definition and Calculation Method of ARPU, etc., in the
Mobile Communications Business).”9

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the three-month period ended June 30, 2012

(Reference)
Fiscal Year Ending
March 31, 2013

Fiscal Year Ended March 31, 2012
Q1

Q2

Q3

Q4

Full Year

Q1(Yen per month)

ARPU22(excluding
communication
modules）(Voice) 23(Data)

(b)

4,430
1,880
2,550

4,550
1,900
2,660

4,490
1,820
2,670

4,140
1,450
2,690

4,400
1,760
2,640

4,300
1,590
2,710

Broadband Infrastructure

Yahoo! BB
Fiscal Year Ending
March 31, 2013

Fiscal Year Ended March 31, 2012
Q1

Q2

Q3

Q4

Full Year

Q1(Thousands)

Yahoo! BB cumulative
subscribers27

4,118

4,145

4,175

4,209

4,238

3,009

2,873

2,737

2,600

2,467

3,710

3,650

3,580

3,510

2.56

2.43

2.35

2.44

1,109

1,272

1,437

1,620

1,660

1,670

Yahoo! BB ADSL
(Thousands)

Cumulative
subscribers(Yen per month)

ARPU283,450(% per month)

Churn rate

2.45

2.60

1,608

1,771

Yahoo! BB hikari with FLET'S(Thousands)

Cumulative
subscribers29(Yen per month)

ARPU28

1,670

1,680

(c)
Fixed-line TelecommunicationsOTOKU Line
Fiscal YearEnding March
31, 2013

Fiscal Year Ended March 31, 2012
Q1

Q2

Q3

Q4

Full Year

Q1(Thousands)

Cumulative
lines

1,669

1,679

1,678

6,650

6,570

6,550

1,685

1,684

(Yen per month)

ARPU28

27

6,790

6,530

Total of the cumulative number of Yahoo! BB ADSL subscribers and the cumulative number of Yahoo! BB hikari with FLET’S subscribers.
28
Average Revenue Per User: average revenue per contract (rounded to the nearest ¥10)
29
Number of users for which connection construction for FLET’S HIKARI line at central office of NTT East or NTT West is complete and who areprovided with services.

10

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the three-month period ended June 30, 2012

(Reference 2: Definition and Calculation Method of ARPU, etc., in the Mobile Communications Business)
1.

Definition and calculation method of ARPU
ARPU（Average Revenue Per User per month）(rounded to the nearest ¥10)
ARPU = (voice-related revenue + data-related revenue) / number of active subscribers= voice ARPU + data ARPU
ARPU (excluding communication modules) = (voice-related revenue + data-related revenue - communication
modules-related revenue) / number of active subscribers (excluding communication modules)
Voice ARPU = voice-related revenue (such as voice call charges, revenues from incoming calls, basic monthly charges)/ number of active subscribers
Data ARPU = data-related revenue (such as packet communication charges) / number of active subscribers
Number of active subscribers:

the total of the monthly numbers of active subscribers for the relevant period((subscribers at the beginning of the month + subscribers at the end of the month)/2).
The number of active subscribers is based on SOFTBANK MOBILE Corp.’s
cumulative subscribers including prepaid mobile phones, communication modules,and devices that do not have voice communication functionalities.
Number of active subscribers used in the calculation of ARPU (excluding
communication modules) excludes communication modules.

Revenues from incoming calls:

interconnection charges received from other operators for voice calls from theircustomers on their network to SoftBank mobile phones as a charge for the services
provided in the SOFTBANK MOBILE Corp. service area.

2.

Definition and calculation method of churn rate
Churn rate ＝churn / number of active subscribers（rounded off to the nearest 0.01%）
Churn＝total number of subscribers that churned during the relevant period
Number of active subscribers:

the total of the monthly numbers of active subscribers for the relevant period((subscribers at the beginning of the month + subscribers at the end of the month)/2).
The number of active subscribers is based on SOFTBANK MOBILE Corp.’s
cumulative subscribers including prepaid mobile phones, communication modules,and devices that do not have voice communication functionalities.

3.

Definition and calculation method of upgrade rate
Upgrade rate in Mobile Communications ＝ number of upgrades / number of active subscribers (rounded off to thenearest 0.01%)
Number of upgrades ＝ total number of upgrades during the relevant period
Number of active subscribers:

the total of the monthly numbers of active subscribers for the relevant period((subscribers at the beginning of the month + subscribers at the end of the month)/2).
The number of active subscribers is based on SOFTBANK MOBILE Corp.’s
cumulative subscribers including prepaid mobile phones, communication modules,and devices that do not have voice communication functionalities.

11

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the three-month period ended June 30, 2012

(Reference 3: Capital Expenditure and Depreciation)(a) Capital Expenditure (acceptance basis)（Millions of yen）

Fiscal Year Ending
March 31, 2013

Fiscal Year Ended March 31, 2012
Q1

Q2

Q3

Q4

Full YearQ1

MobileCommunications

84,076

98,39993,675

146,613422,766

82,464

Broadband
Infrastructure

5,739

3,861

4,638

12,523

26,762

2,671

Fixed-line
Telecommunications

6,320

8,281

10,654

14,621

39,877

8,236Internet Culture

3,349

4,609

3,743

4,218

15,921

4,942

Others

1,710

5,338

2,041

1,958

11,047

94,970Consolidated total

101,196

120,490

114,753

179,935

516,375

193,286(b) Depreciation and Amortization (excluding amortization of goodwill)（Millions of yen）

Fiscal Year Ending
March 31, 2013

Fiscal Year Ended March 31, 2012
Q1

Q2

Q3

Q4

46,202

48,69149,26659,295

203,455

58,467

3,540

3,452

3,507

3,894

14,395

3,441

9,188

9,684

9,957

10,96939,8009,749Internet Culture

2,291

2,395

2,703

2,896

10,2882,636

Others

1,521

1,592

2,350

2,421

7,886

2,185

Consolidated total

62,74465,81667,78579,478275,825

76,480

MobileCommunications
Broadband
Infrastructure
Fixed-line
Telecommunications

12

Full Year

Q1

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the three-month period ended June 30, 2012

(2) Qualitative Information Regarding Consolidated Financial Position
1.

Assets, Liabilities, and Equity

Assets, liabilities, and equity at the end of the period were as follows:(Millions of yen)

As of March 31, 2012

As of June 30, 2012

ChangeChange %Total assets

4,899,705

4,628,074(271,630)(5.5%)

Total liabilities

3,464,065

3,204,788(259,276)(7.5%)

Total equity

1,435,640

1,423,286(12,353)(0.9%)(a) Current Assets
Current assets at the end of the period totaled ¥1,546,328 million, for a ¥364,124 million (19.1%) decrease fromMarch 31, 2012, (hereafter “the previous fiscal year-end”).

The primary components of the change were as

follows:
・ Cash and deposits decreased by ¥258,070 million from the previous fiscal year-end.

This was mainly becauseof the payment of accounts payable – other of ¥200,000 million in April 2012 to the Vodafone Group,30 and thepayment for a year-end dividend of ¥39,231 million for the year ended March 31, 2012. Also, in May 2012Yahoo Japan Corporation acquired 42.6% of the shares (voting rights at the time of acquisition) of ASKULCorporation for ¥33,038 million.
・ Notes and accounts receivable-trade decreased by ¥88,438 million from the previous fiscal year-end.

Thisdecrease was mainly the result of a temporary increase in accounts receivable-trade from sales agents at theprevious fiscal year-end. During the fourth quarter of the previous fiscal year handsets shipped at SOFTBANKMOBILE Corp. increased due to seasonal factors.

(b) Fixed Assets
Fixed assets totaled ¥3,076,544 million at the end of the period, for a ¥92,991 million (3.1%) increase from theprevious fiscal year-end. The primary components of the change were as follows:
・ Property and equipment increased ¥113,293 million from the previous fiscal year-end.

The main increases

were ¥50,707 million in land, and ¥40,672 million in buildings and structures. These increases were due
primarily to recording the lease asset relating to the Yahoo! JAPAN Dome (hereafter, “the Yahoo! Dome”) on
the consolidated balance sheet for the period. In accordance with transitional measures, after the revision of
the accounting standard for leases effective from April 1, 2008, the lease contract relating to the Yahoo! Domecontinued to be accounted for as an operating lease transaction, while being classified as a finance lease that did
not transfer ownership of the leased property to the lessee.

Fukuoka SOFTBANK HAWKS Marketing Corp.

(hereafter “HAWKS Marketing”) entered into a purchase contract in March 2012 to acquire a trust beneficiaryinterest in the Yahoo! Dome in July 2015. As a result the lease contract was reclassified as a finance lease thatis deemed to transfer ownership of the leased asset to the lessee and recorded as a lease asset on the consolidated

30

Vodafone International Holdings B.V. and Vodafone Overseas Finance Limited

13

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the three-month period ended June 30, 2012balance sheet.

Although HAWKS Marketing entered into this contract in March 2012, since HAWKS

Marketing’s fiscal year ends February its financial statements are reflected in the consolidated financial
statements with a one-month lag. Therefore this is reflected in the consolidated financial statements in the
period ended June 30, 2012.
・ Total intangible assets decreased ¥10,012 million from the previous fiscal year-end.

This was mainly because

goodwill decreased by ¥15,806 million resulting from regular amortization of the goodwill recorded when the
Company acquired SOFTBANK MOBILE Corp., SOFTBANK TELECOM Corp., and others. On the other
hand, software increased by ¥11,761 million as a result of new acquisitions of telecommunications equipment.
・ Investments and other assets decreased by ¥10,290 million from the previous fiscal year-end.

This was mainly

due to a ¥19,952 million decrease in investment securities. This decrease was primarily a result of Alibaba
Group Holding Limited, the Company’s equity method affiliate, acquiring the shares of Alibaba.com Limited, asubsidiary of Alibaba Group Holding Limited, through a takeover bid in June 2012 and privatizing it (pleaserefer to page 26 for details). Yahoo Japan Corporation’s acquisition of 42.6% of the shares (voting rights at thetime of acquisition) of ASKUL Corporation at ¥33,038 million is also reflected.

(c) Current Liabilities
Current liabilities at the end of the period totaled ¥1,565,528 million, for a ¥358,196 million (18.6%) decrease
from the previous fiscal year-end.

The primary components of the change were as follows:・ Accounts payable – other and accrued expenses decreased by ¥259,460 million from the previous fiscal

year-end. This was mainly the result of paying an accounts payable – other of ¥200,000 million to theVodafone Group in April 2012 by the Company, as well as paying unpaid sales commissions to sales agentsfrom the year-end shopping season of the previous fiscal year by SOFTBANK MOBILE Corp.
・ Income taxes payable decreased by ¥68,092 million from the previous fiscal year-end.

This was mainly

because payments were made for income tax payable at the previous fiscal year-end while income tax payable
was recorded for the period.
・ Accounts payable – trade decreased by ¥53,288 million from the previous fiscal year-end.

This decrease wasmainly the result of a temporary increase in accounts payable – trade at the previous fiscal year-end.

Duringthe fourth quarter of the previous fiscal year the number of handsets procured at SOFTBANK MOBILE Corp.
increased due to seasonal factors.
・ The current portion of corporate bonds increased by ¥25,000 million from the previous fiscal year-end.

This

st

was mainly due to the transfer from corporate bonds under long-term liabilities of the 31 Unsecured Straight
Corporate Bond.

(d) Long-term Liabilities
Long-term liabilities totaled ¥1,639,259 million at the end of the period, for a ¥98,919 million (6.4%) increase
from the previous fiscal year-end.

The primary components of the change were as follows:・ Lease obligations increased by ¥122,165 million from the previous fiscal year-end.

This was mainly due to thereclassification of the lease contract concluded by HAWKS Marketing related to the Yahoo! Dome from financeleases that do not transfer ownership of the leased property to the lessee to finance leases that are deemed to

14

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the three-month period ended June 30, 2012transfer ownership of the leased property to the lessee (please refer to (b) Fixed Assets on page 13 for details).
・ Corporate bonds decreased ¥25,000 million from the previous fiscal year-end.

This was due to the transfer ofstthe 31 Unsecured Straight Corporate Bond to current liabilities as the redemption date came to be within oneyear.

(e) Equity
Equity totaled ¥1,423,286 million at the end of the period, for a ¥12,353 million (0.9%) decrease from theprevious fiscal year-end. The equity ratio increased 0.9 of a percentage point from the previous fiscal year-end to
20.0%.

The primary components of the change were as follows:(Shareholders’ equity)
Shareholders’ equity decreased ¥4,603 million from the previous fiscal year-end to ¥953,343 million.
・ Additional paid-in capital decreased by ¥51,214 from the previous fiscal year-end.

This was primarily a resultof Alibaba Group Holding Limited, the Company’s equity method affiliate, acquiring the shares of Alibaba.com
Limited, a subsidiary of Alibaba Group Holding Limited, through a takeover bid in June 2012 and privatizing it.
Please refer to page 26 for details.
・ Retained earnings increased ¥46,612 million from the previous fiscal year-end.

This was primarily because net

income of ¥90,661 million was recorded, although this was partially offset by a year-end dividend for the year
ended March 31, 2012 of ¥43,940 million.
(Valuation and translation adjustments)
Valuation and translation adjustments of ¥29,895 million were recorded as debit at the end of the period, a ¥8,641
million decrease from the previous fiscal year-end.
・ Net unrealized loss on available-for-sale securities was ¥2,290 million at the end of the period, a ¥12,856

million decrease from the net unrealized gain at the previous fiscal year-end.
・ Foreign currency translation adjustments improved by ¥4,113 million from the previous fiscal year-end to a

debit of ¥26,712 million at the end of the period.
(Minority interests)
・ Minority interests totaled ¥498,907 million at the end of the period, for a ¥859 million increase from theprevious fiscal year-end.

15

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the three-month period ended June 30, 2012

2.

Cash Flows

Cash flows during the period were as follows:
Cash and cash equivalents at the end of the period totaled ¥757,823 million, for a ¥256,735 million decrease fromthe previous fiscal year-end.
(Millions of yen)Three-month Period
Ended
June 30, 2011

Three-month Period
Ended
June 30, 2012

Cash flows from operating activities

107,035

131,879

24,843

Cash flows from investing activities(76,172)(166,274)(90,101)(Reference) Free cash flow

30,863(34,395)(65,258)

Cash flows from financing activities(146,980)(220,121)(73,141)

Change(a) Cash Flows from Operating Activities
Net cash provided by operating activities totaled ¥131,879 million (compared with ¥107,035 million provided in
the same period of the previous fiscal year). The primary components of the change were as follows:・ Income before income taxes and minority interests totaled ¥180,811 million.
・ Themain items added to income before income taxes and minority interests were ¥76,480 million in

depreciation and amortization and ¥15,799 million in amortization of goodwill.
・ Receivables – trade declined by ¥88,035 million (increase in cash flow).

This decrease was mainly the resultof a temporarily increase in accounts receivable-trade from sales agents at the previous fiscal year-end. During
the fourth quarter of the previous fiscal year handsets shipped at SOFTBANK MOBILE Corp. increased due toseasonal factors.
・ Payables – trade declined by ¥53,458 million.

This decrease was mainly the result of a temporary increase inaccounts payable – trade at the previous fiscal year-end.

During the fourth quarter of the previous fiscal year

the number of handsets procured at SOFTBANK MOBILE Corp. increased due to seasonal factors.
・ Income taxes paid was ¥124,676 million.

(b) Cash Flows from Investing Activities
Net cash used in investing activities was ¥166,274 million (compared with ¥76,172 million used in the same
period of the previous fiscal year). The primary components of the change were as follows:・ Outlays for purchase of property and equipment, and intangibles came to ¥118,045 million.

The main factor

was capital expenditure in the telecommunications-related businesses.
・ Outlays for purchase of marketable and investment securities were ¥45,749 million.

This was mainly due toYahoo Japan Corporation’s acquisition of 42.6% of the shares (voting rights at the time of acquisition) of
ASKUL Corporation at ¥33,038 million.

As a result, free cash flow (the combined net cash flows from operating activities and investing activities) for theperiod was a negative ¥34,395 million (compared with a positive ¥30,863 million in the same period of theprevious fiscal year), for a year-on-year decrease of ¥65,258 million.

16

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the three-month period ended June 30, 2012(c) Cash Flows from Financing Activities
Net cash used in financing activities was ¥220,121 million (compared with ¥146,980 million used in the same
period of the previous fiscal year). The primary components of the change were as follows:(Items increasing cash flows)
・ The sale and lease back of equipment newly acquired provided ¥92,642 million.

(Items decreasing cash flows)・ Outlays included ¥200,444 million for payments for repurchase of minority interests and long-term debt,¥44,904 million for the repayment of lease obligations, ¥39,231 million for the payment of dividends, and¥20,071 million for the repayment of long-term debt. The payments for repurchase of minority interests andlong-term debt is the amount paid to the Vodafone Group in April 2012, and various related fees. Please referto page 24 for details.

(Reference: Major Financing Activities)
The major financing activities in the period were as follows:
Item

Company Name

Details

Increase or
decrease in debt

SOFTBANK CORP.

Decrease of ¥10,000 million

Execute saleand lease back

SOFTBANK MOBILE Corp.
etc.

Procurement of ¥92,642 million

Summary

Capital expenditure via finance leases(3) Qualitative Information Regarding Consolidated Earnings Forecasts
For the fiscal year ending March 31, 2013, the Group will continue to focus on network expansion andcustomer acquisition in the Mobile Communications segment. Although this will increase the Group’s
expenses, the customer base is expected to continue to expand steadily. As a result, the Group is forecastinga year-on-year increase in both net sales and operating income, and expects operating income to exceed ¥700
billion.
In the fiscal year ending March 31, 2014, the Group expects to achieve these initiatives and to see its
profits enter a new growth phase.

17

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the three-month period ended June 30, 2012

2. Consolidated Financial Statements(1) Consolidated Balance Sheets(Millions of yen)
As ofMarch 31, 2012

As ofJune 30, 2012

AmountAmountASSETS
Current assets:
Cash and deposits
Notes and accounts receivable - tradeMarketable securities¥1,016,251¥758,181

661,287

572,849

4,575

5,601

Merchandise and finished products

42,61828,854

Deferred tax assets

56,46938,480

Other current assets
Less:
Allowance for doubtful accounts
Total current assets

168,264

177,897(39,014)(35,536)

1,910,452

1,546,328

Buildings and structures

77,404

118,077

Telecommunications equipment

988,541995,978

Telecommunications service lines

65,21363,815

Land

23,17573,883

Construction in progress

80,501

93,870

Other property and equipment

61,55564,062

Total property and equipment

1,296,393

1,409,687

Goodwill

780,242

764,436

Software310,151

321,913

Other intangibles

36,12030,152

1,126,514

1,116,502

Investment securities

338,198

318,245

Deferred tax assets

104,327

108,128

134,076

140,653(15,957)
560,6442,983,553(16,672)
550,354
3,076,544

5,699

5,202

¥4,899,705¥4,628,074

Fixed assets:
Property and equipment, net:

Intangible assets, net:

Total intangible assets
Investments and other assets:

Other assets
Less:
Allowance for doubtful accounts
Total investments and other assets
Total fixed assets
Deferred charges
Total assets

18

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the three-month period ended June 30, 2012

Consolidated Balance Sheets(Millions of yen)
As ofMarch 31, 2012

As ofJune 30, 2012

AmountAmountLIABILITIES AND EQUITYCurrent liabilities:
Accounts payable - trade
Short-term borrowings¥190,532¥137,243

403,167

388,188

Current portion of corporate bonds
Accounts payable - other and accrued expenses

144,988

169,988835,053575,592

Income taxes payable

125,116

57,023Current portion of lease obligations

152,682

165,911

Other current liabilities

72,184

71,580Total current liabilities

1,923,725

1,565,528

Corporate bonds

459,900

434,900

Long-term debt

560,070

565,157

Deferred tax liabilities

20,37018,278

Liability for retirement benefits

14,953

14,872

Allowance for point mileage

32,07433,556

Lease obligations

347,699

469,864

Other liabilities

105,272

102,629

Total long-term liabilities

1,540,339

1,639,259

Total liabilities

3,464,065

3,204,788

Common stock

213,797

213,797

Additional paid-in capital

236,562

185,347

Retained earnings

530,534

577,147

Less: Treasury stock(22,947)(22,948)

Total shareholders’ equity

957,947

953,343

Unrealized gain (loss) on available-for-sale securities

10,566(2,290)

Deferred loss on derivatives under hedge accounting

(993)

(891)

Foreign currency translation adjustments(30,826)(26,712)

Total valuation and translation adjustments(21,253)(29,895)

898

930

Minority interests

498,047

498,907

Total equity

1,435,640

1,423,286

Total liabilities and equity¥4,899,705¥4,628,074

Long-term liabilities:

Equity:Stock acquisition rights

19

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the three-month period ended June 30, 2012

(2) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income
Consolidated Statements of Income(Millions of yen)Three-month period ended
June 30, 2011
April 1, 2011 toJune 30, 2011
AmountThree-month period ended
June 30, 2012
April 1, 2012 toJune 30, 2012
AmountNet sales
Cost of sales
Gross profit¥764,237¥766,902

341,340

340,506

422,897426,395

Selling, general and administrative expenses

247,071

234,271

175,825

192,124

Operating income
Interest income

560

228

Other non-operating income
Non-operating income

2,702

2,747

3,262

2,976

Interest expense
Equity in losses of affiliated companies
Other non-operating expenses
Non-operating expenses

22,407

9,044

863

499

4,586

4,578

27,857

14,122

151,230

180,978

Gain on sale of investment securities

4,932

851

Dilution gain from changes in equity interest

15,424

2,485

20,356

3,336

196

394

76

1,332

-

1,229

107

546

Ordinary income

Special income
Valuation loss on investment securities
Unrealized loss on valuation of investments and loss onsale of investments at subsidiaries in the U.S.,net
Loss on system trouble
Other special losses
Special loss

380

3,503

Income before income taxes and minority interests
Income taxes:
Current
Deferred

171,206

180,81127,95457,71932,246

15,403

Total income taxes

60,20073,122

111,006

107,688

16,21517,027¥94,791¥90,661

Income before minority interests
Minority interests in net income
Net income

20

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the three-month period ended June 30, 2012

Consolidated Statements of Comprehensive Income(Millions of yen)Three-month period ended
June 30, 2011
April 1, 2011 toJune 30, 2011
AmountIncome before minority interests
Other comprehensive loss
Unrealized loss on available-for-sale securities
Deferred gain on derivatives under hedge accounting
Foreign currency translation adjustment
Share of other comprehensive income of affiliatedcompanies accounted for using equity method
Total other comprehensive loss
Comprehensive income

Three-month period ended
June 30, 2012
April 1, 2012 toJune 30, 2012
Amount111,006

107,688(10,283)(12,180)

3,403

101

(2,234)(4,730)

2,114

8,285

(6,998)(8,523)104,007

99,164

Owners of the parent

87,87782,019Minority interests

16,12917,145Comprehensive income attributable to:21

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the three-month period ended June 30, 2012

(3) Consolidated Statements of Cash Flows(Millions of yen)Three-month period ended
June 30, 2011

Three-month period ended
June 30, 2012

April 1, 2011 toJune 30, 2011

April 1, 2012 toJune 30, 2012

Cash flows from operating activities:
Income before income taxes and minority interests¥171,206¥180,811

Depreciation and amortization

62,74476,480

Amortization of goodwill

15,673

15,799863

499(15,387)(2,281)

196

394

76

1,332

(4,956)(510)

Foreign exchange gain, net

(75)

(249)

Interest and dividend income(1,706)(552)

Interest expense

22,407

9,044

Adjustments for:

Equity in losses of affiliated companies
Dilution gain from changes in equity interest, net
Valuation loss on investment securities
Unrealized loss on valuation of investments and loss on sale ofinvestments at subsidiaries in the U.S., net
Gain on sale of marketable and investment securities, net

Changes in operating assets and liabilities
Decrease in receivables - trade51,92388,035Decrease in payables - trade(36,927)(53,458)(32,830)(51,766)

233,208

263,579

1,786

633

Interest paid

(20,931)(7,657)

Income taxes paid

(107,027)(124,676)

107,035

131,879

Other, net
Sub-totalInterest and dividend received

Net cash provided by operating activities- Continued -22

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the three-month period ended June 30, 2012

Consolidated Statements of Cash Flows (Continued)(Millions of yen)Three-month period ended
June 30, 2011

Three-month period ended
June 30, 2012

April 1, 2011 toJune 30, 2011

April 1, 2012 toJune 30, 2012

Cash flows from investing activities:
Purchase of property and equipment, and intangibles¥(77,800)¥(118,045)

Purchase of marketable and investment securities
Proceeds from sale of marketable and investment securities(12,867)(45,749)

13,5697,880

925(10,359)(76,172)(166,274)

Decrease in short-term borrowings, net(49,793)(20)

Decrease in commercial paper, net(5,000)-

Proceeds from long-term debt

50,675

10,140

Repayment of long-term debt

(149,641)(20,071)

Proceeds from issuance of bonds

129,370-

Redemption of bonds(113,500)

-

224

466

Cash dividends paid

(4,746)(39,231)

Cash dividends paid to minority shareholders(14,926)(13,075)

Proceeds from sale and lease back of equipment newly acquired

44,532

92,642

Repayment of lease obligations(33,603)(44,904)-(200,444)(571)(5,623)(146,980)(220,121)

(517)

(424)

(116,634)(254,941)

23

-

(734)

(1,793)

847,155

1,014,558¥729,809¥757,823

Other, net
Net cash used in investing activities
Cash flows from financing activities:

Proceeds from issuance of shares to minority shareholders

Payments for repurchase of minority interests and long-term debt
Other, net
Net cash used in financing activities
Effect of exchange rate changes
on cash and cash equivalents
Net decrease in cash and cash equivalents
Increase in cash and cash equivalents due to newly consolidated
subsidiaries
Decrease in cash and cash equivalents due to exclusion ofpreviously consolidated subsidiaries
Cash and cash equivalents, beginning of the period
Cash and cash equivalents, end of the period

23

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the three-month period ended June 30, 2012(4) Significant Doubt about Going Concern Assumption
There are no applicable items for the three-month period ended June 30, 2012.

(5) Notes(Consolidated Statements of Income)1. Unrealized loss on valuation of investments and loss on sale of investments at subsidiaries in the United States of America,
net
Certain subsidiaries of the Company in the United States of America qualify as investment companies under the provisions set
forth in Financial Services – Investment Companies of the FASB ASC 946 and account for investment securities in accordancewith ASC 946.
The net changes in the fair value of the investments are recorded as unrealized loss on valuation of investments and loss on saleof investments at subsidiaries in the U.S., net and loss on sale of investments, computed based on the acquisition cost, is also
included in this account. The unrealized loss on valuation of investments and loss on sale of investments included in unrealized
loss on valuation of investments and loss on sale of investments at subsidiaries in the U.S., net in the consolidated statements ofincome are as follows:
Three-month period ended
June 30, 2011
Unrealized loss on valuation of investment
at subsidiaries in the U.S.,net
Loss on sale of investments
at subsidiaries in the U.S.,net
Total

Three-month period ended
June 30, 2012

(76)

(565)

-

(767)

(76) million yen(1,332)

million yen

2. Loss on system trouble
For the three-month period ended June 30, 2012 (From April 1 to June 30, 2012)
The loss is associated with the data loss trouble which occurred in a part of services provided by Firstserver, Inc., a consolidated
subsidiary of the Company.

(Consolidated Statements of Cash Flows)
1. Scope of purchase of property and equipment, and intangibles in the consolidated statements of cash flows“Purchase of property and equipment, and intangibles” are comprised of cash outflows from purchasing property and equipment,
and intangible assets (excluding goodwill) and long-term prepaid expenses.
2. Proceeds from sale and lease back of equipment newly acquired
Once SOFTBANK MOBILE Corp. and others purchase telecommunications equipment for the purpose of assembly,
installation and inspection, SOFTBANK MOBILE Corp. and others sell the equipment to lease companies under sale and leaseback arrangements. The leased asset and lease obligation are recorded in the consolidated balance sheets.
The cash outflows from the purchase of the equipment from vendors are included in “Purchase of property and equipment, andintangibles” under cash flows from investing activities and the cash inflows from the sale of the equipment to lease companies
are included in “Proceeds from sale and lease back of equipment newly acquired” under cash flows from financing activities.
3. Payments for repurchase of minority interests and long-term debt
For the three-month period ended June 30, 2012 (From April 1 to June 30, 2012)
In April 2006, BB Mobile Corp issued class 1 preferred stock-series 1 and stock acquisition rights to Vodafone International
Holdings B.V. and obtained a subordinated loan from Vodafone Overseas Finance Limited as a series of financing transactions
for the Company’s acquisition of Vodafone K.K. (currently SOFTBANK MOBILE Corp.). In November 2006, refinancing of
the funds for the acquisition was conducted, and SOFTBANK MOBILE Corp. assumed BB Mobile Corp’s subordinated loan.

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SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the three-month period ended June 30, 2012

In December 2010, the Company acquired aforementioned all class 1 preferred stock-series 1 and stock acquisition rights issued
by BB Mobile Corp. to Vodafone International Holdings B.V., and all principal and accrued interest of a long-term loan
receivable from SOFTBANK MOBILE Corp. held by Vodafone Overseas Finance Limited for the total amount of ¥412,500
million. Amounting to ¥212,500 million out of the total amount and the remaining amount of ¥200,000 million were paid withthe related expenses associated with the acquisition (¥63 million in December 2010 and ¥444 million in April 2012) inDecember 2010 and in April 2012, respectively.

(6) Segment Information
1. Net sales and segment profit or loss of reportable segments for the three-month period ended June 30, 2011
(Millions of yen)
Reportable segments
Other 1

Total

Reconciliations to

Amounts inconsolidated

consolidated

statement of income 2statement of income 3

MobileBroadband

Fixed-line

InternetCommunications

Infrastructure

Telecommunications

Culture¥512,216¥40,764¥69,718¥68,631¥691,330¥72,906¥764,237¥-¥764,237

1,874

3,255

17,773

97823,882

8,649

32,531(32,531)-

Total

514,09044,01987,492

69,610715,21381,556

796,769(32,531)764,237

Segment profit¥116,491¥10,221¥12,913¥36,605¥176,231¥2,405¥178,637¥(2,811)¥175,825

Subtotal

Net sales
Customers
Inter-segment

Notes:
1. The PC software and peripherals distribution business and Fukuoka SOFTBANK HAWKS related business are included in “Other.”
2. Amounts in the column “Reconciliations to consolidated statement of income” of ¥(2,811) million represent elimination of intersegment
transactions and expenses of the corporate division of the Company, which totaled ¥259 million and ¥(3,071) million, respectively.
3. Segment profit is adjusted with operating income in the consolidated statements of income.

2. Net sales and segment profit or loss of reportable segments for the three-month period ended June 30, 2012
(Millions of yen)
Reportable segments
Other 1

Total

Reconciliations to

Amounts inconsolidated

consolidated

statement of income 2statement of income 3

MobileBroadband

Fixed-line

InternetCommunications

Infrastructure

Telecommunications

Culture¥504,525¥35,810¥72,218¥74,679¥687,233¥79,668¥766,902¥-¥766,902

20,220755

28,2158,599

36,814(36,814)-

Subtotal

Net sales
Customers

1,686

5,553

Total

506,21141,36492,43875,434715,448

88,268803,716(36,814)

766,902

Segment profit¥128,106¥9,459¥15,598¥40,113¥193,277¥1,682¥194,960¥(2,835)¥192,124

Inter-segment

Notes:
1. The PC software and peripherals distribution business and Fukuoka SOFTBANK HAWKS related business are included in “Other.”
2. Amounts in the column “Reconciliations to consolidated statement of income” of ¥(2,835) million represent elimination of intersegment
transactions and expenses of the corporate division of the Company, which totaled ¥508 million and ¥(3,343) million, respectively.
3. Segment profit is adjusted with operating income in the consolidated statements of income.

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SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the three-month period ended June 30, 2012(7) Significant Changes in Shareholders’ Equity
For the three-month period ended June 30, 2012 (From April 1 to June 30, 2012)
Alibaba Group Holding Limited, the Company’s affiliate company under the equity method, acquired the shares of Alibaba.com
Limited, a subsidiary of Alibaba Group Holding Limited, through its takeover bid in June 2012 and conducted the privatizationof Alibaba.com Limited. Financial statements of Alibaba Group Holding Limited were prepared in accordance withaccounting principles generally accepted in the U.S., and Alibaba Group Holding Limited recorded the change in the interests in
its controlled subsidiary as a decrease in additional paid-in capital.
The Company applied “Practical Solution on Unification of Accounting Policies Applied to Associates Accounted for Using theEquity Method (Practical Issues Task Force No.24)” for the transaction and as a result, additional paid-in capital decreased by¥51,207 million.

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