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 4 of this report.

SoftBank Corp.
Consolidated Financial Report
For the fiscal year ended March 31, 2013
Tokyo, April 30, 2013

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

Net sales

Operating income

Ordinary income

Net income

Amount%Amount%Amount%Amount%Fiscal year ended
March 31, 2013

¥3,378,365

5.5¥745,000

10.3¥653,21413.9¥289,403(7.8)

Fiscal year ended
March 31, 2012

¥3,202,435

6.6¥675,283

7.3¥573,651

10.2¥313,752

65.4

Note: Comprehensive income
Fiscal year ended March 31, 2013:
Fiscal year ended March 31, 2012:¥ 554,233 million (55.3%)¥ 356,988 million (62.3%)

Net income
per share－basic(yen)

Net income
per share－diluted(yen)

Fiscal year ended
March 31, 2013¥258.35

Fiscal year ended
March 31, 2012¥285.78

Note: Equity in losses of affiliated companies
Fiscal year ended March 31, 2013:
Fiscal year ended March 31, 2012:

Return on Equity(%)

Ordinary income /Total assets (%)

Operating income /Net sales (%)¥254.12

23.1

11.4

22.1

¥278.75

40.3

12.0

21.1

¥ 33,523 million¥ 2,947 million(2) Financial Condition(Millions of yen; amounts less than one million yen are omitted.)

Shareholders' equity
per share (yen)Total assets

Total equity

Equity ratio (%)

As of March 31, 2013

¥6,524,886¥2,106,459

24.0¥1,316.90

As of March 31, 2012

¥4,899,705¥1,435,640

19.1¥852.69

Note: Shareholders’ equity (consolidated)
As of March 31, 2013:
As of March 31, 2012:¥1,569,085 million¥ 936,693 million(3) Cash Flows(Millions of yen; amounts less than one million yen are omitted.)

Operating activities

Investing activities

Financing activities

Cash and cash
equivalents
at the end of the year

Fiscal year ended
March 31, 2013

¥894,459¥(919,769)¥365,494¥1,364,629

Fiscal year ended
March 31, 2012

¥740,227¥(375,655)¥(196,667)¥1,014,558

2. Dividends
Dividend per share
Fiscal years ended First quarter Second quarter Third quarter
end
end
end
March 31
(yen)

(yen)

Fiscal year
end

(yen)

(yen)

Total

Total
Amount ofdividends

Payout ratio(Consolidated)

Dividend
on equity(Consolidated)(Annual)(yen)(millions of yen)%%

FY 2012
0.00
40.00
40.00
43,94014.0
5.6
FY 2013
20.00
20.00
40.00
45,93415.5
3.7
FY 2014(Forecasted)
Note: Dividend for the fiscal year ending March 31, 2014(Forecasted) is not determined at this point. The concrete amount ofdividend will be announced promptly upon resolution.
3.

Forecasts on the Consolidated Operation Results for the Fiscal Year Ending in March 2014 (April 1, 2013 – March 31, 2014)
The Company has adopted the International Financial Reporting Standards (IFRS) in place of the Japanese-GAAP standards
from the fiscal year ending March 31, 2014 (transition date: April 1, 2012). Under IFRS the Company is projecting
consolidated operating income from its domestic business of at least ¥1 trillion in the fiscal year ending March 31, 2014. This
includes an expected gain of approximately ¥150.0 billion resulting from the re-evaluation of the existing interests held in
GungHo Online Entertainment, Inc. at fair value as GungHo Online Entertainment, Inc., which was an affiliate under the equity
method, became a consolidated subsidiary on April 1, 2013.

* Notes(1) Significant changes in scope of consolidation (Changes in scope of consolidation of specified subsidiaries):
Newly consolidated: Two companies StarburstⅠ, Inc., StarburstⅡ, Inc.

Yes

(2) Changes in accounting principles, procedures, disclosure methods, etc., used in the presentation of 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(3) Number of shares issued (Common stock)[1] Number of shares issued (including treasury stock):
As of March 31, 2013:
As of March 31, 2012:

1,200,660,365 shares
1,107,728,781 shares[2] Number of treasury stock:
As of March 31, 2013:
As of March 31, 2012:

9,160,493 shares
9,213,962 shares[3] Weighted-average number of common stock:
As of March 31, 2013:
As of March 31, 2012:

1,120,200,622 shares
1,097,880,178 shares

SoftBank Corp. Consolidated Financial Report
For the fiscal year ended March 31, 2013[For Reference]
Financial Highlights (Non-Consolidated)(1) Non-Consolidated Results of Operations(Millions of yen; amounts less than one million yen are omitted.)

Net sales

Operating income

Ordinary income

Net income

Amount%Amount%AmountFiscal year ended
March 31, 2013

¥46,020

5.3¥31,553

5.1¥113,896 210.9¥75,999 199.9

Fiscal year ended
March 31, 2012

¥43,700

24.3¥30,02628.9¥36,634¥25,339

Net income
per share－basic(yen)

Net income
per share－diluted(yen)

Fiscal year ended
March 31, 2013¥67.84¥ 66.86

Fiscal year ended
March 31, 2012

¥23.08¥ 22.89%

48.6

Amount%-(2) Non-Consolidated Financial Condition(Millions of yen; amounts less than one million yen are omitted.)

Total assets

Net Assets

Equity ratio (%)

Shareholders' equity
per share (yen)As of March 31, 2013

¥3,873,731¥885,635

22.9¥743.21

As of March 31, 2012

¥2,985,073¥493,002

16.5¥448.70

Note: Shareholders’ equity (non-consolidated)
As of March 31, 2013:
As of March 31, 2012:¥885,540 million¥492,904 million* Implementation status of audit proceduresThis consolidated financial report is not subject to audit procedures based on Financial Instruments and Exchange Act and the audit procedures for the
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 13 “1. Results of Operations (1)Qualitative Information Regarding Consolidated Results of Operations 3. Forecasts on the Consolidated Operation Results for the Fiscal Year Ending inMarch 2014 (April 1, 2013 – March 31, 2014)” for details of notes to precondition and usage for forecasts.
On April 30, 2013, SoftBank Corp. will hold an earnings results briefing for financial institutions, institutional investors, and the media. This
briefing will be broadcast live on our Web site in both Japanese and English (http://www.softbank.co.jp/en/irinfo/).
The Earnings Results Data Sheets will also be posted on SoftBank Corp.'s Web site around 7 p.m. on the day of the announcement:(http://www.softbank.co.jp/en/irinfo/library/presentation/)

SoftBank Corp. Consolidated Financial Report
For the fiscal year ended March 31, 2013

(Appendix)
Contents
1.

Results of Operations(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）
3. Forecasts on the Consolidated Operation Results for the Fiscal Year Ending
March 2014 (April 1, 2013 – March 31, 2014)(2) Qualitative Information Regarding Consolidated Financial Position
1. Assets, Liabilities, and Equity
2. Cash Flows（Reference: Major Financing Activities）(3) Fundamental Policy for Distribution of Profit, and Dividend for the Fiscal Year

p. 2
p. 2
p. 2
p. 5
p.10
p.12
p.13
p.13
p.14
p.14
p.17
p.20
p.20

2.

The SoftBank Group

p.21

3.

Management Policies(1) Basic Management Approach(2) Medium- to Long-term Strategies(3) Important Management Issues for the Company

p.22
p.22
p.22
p.23

4.

Consolidated Financial Statements(1) Consolidated Balance Sheets(2) Consolidated Statements of Income and Consolidated Statements of Comprehensive
Income(3) Consolidated Statements of Changes in Equity(4) Consolidated Statements of Cash Flows(5) Significant Doubt About Going Concern Assumption(6) Basis of Presentation of Consolidated Financial Statements(7) Additional information(8) Notes(Consolidated Balance Sheets)(Consolidated Statements of Income)(Consolidated Statements of Changes in Equity)(Consolidated Statements of Cash Flows)(Financial Instruments)(Derivative Transactions)(Income Taxes)(Segment Information)(Per Share Data)(Significant Subsequent Events)

p.25
p.25
p.27

1

p.29
p.31
p.33
p.33
p.36
p.41
p.41
p.43
p.45
p.47
p.49
p.54
p.57
p.58
p.60
p.61

SoftBank Corp. Consolidated Financial Report
For the fiscal year ended March 31, 2013

1.

Results of Operations(1) Qualitative Information Regarding Consolidated Results of Operations
1.

Consolidated Results of Operations< Overview of results for the fiscal year from April 1, 2012 to March 31, 2013 >For the fiscal year ended March 31, 2013 (hereafter “the fiscal year”), the SoftBank Group (hereafter “theGroup”) achieved consolidated net sales of ¥3,378,365 million, a ¥175,929 million (5.5%) increase comparedwith the previous fiscal year (April 1, 2011 to March 31, 2012, hereafter “year on year”), with a ¥69,716 million(10.3%) increase in operating income to ¥745,000 million. Ordinary income grew ¥79,563 million (13.9%) to¥653,214 million. Net income declined ¥24,349 million (7.8%) to ¥289,403 million.
Note:
Definition of terms: as used in this consolidated financial report for the fiscal year from April 1, 2012 to March 31, 2013, references to“the Company,” “the Group,” and “the SoftBank Group” are to SoftBank Corp. and its consolidated subsidiaries except as the context
otherwise requires or indicates.

The main factors affecting earnings for the fiscal year were as follows:(a) Net Sales
Net sales totaled ¥3,378,365 million, for a ¥175,929 million (5.5%) year-on-year increase. This was mainly
due to increased telecom service revenue, primarily from steady growth in the number of mobile phone
subscribers.

(b) Cost of Sales
Cost of sales increased by ¥104,989 million (7.1%) year on year to ¥1,590,740 million.

This was primarily due

to an increase in depreciation and amortization in the Mobile Communications segment, mainly due to theinstallation of additional base stations.

(c) Selling, General, and Administrative Expenses
Selling, general, and administrative expenses increased by ¥1,223 million (0.1%) year on year to ¥1,042,625
million. This was mainly because of an increase in personnel costs, despite a decrease in sales commissions
and sales promotion expenses. The increase in personnel costs was mainly due to an increase in personnel tobolster sales activities.

The decrease in sales commissions and sales promotion expenses was mainly due to a

decline in sales promotion expenses in the Mobile Communications segment and a decline in subscriber salescommissions in the Broadband Infrastructure segment.

(d) Operating Income
As a result, operating income totaled ¥745,000 million, for a ¥69,716 million (10.3%) year-on-year increase.
The operating margin rose 1.0 percentage point year on year to 22.1%.

2

SoftBank Corp. Consolidated Financial Report
For the fiscal year ended March 31, 2013(e) Non-operating Income / Expenses
Non-operating income totaled ¥19,779 million, a ¥8,471 million (74.9%) year-on-year increase. Non-operating
expenses were ¥111,565 million, a ¥1,375 million (1.2%) year-on-year decrease.

The non-operating expenses

primarily reflected interest expense of ¥36,736 million, equity in losses of affiliated companies of ¥33,523
million, and financing related expenses of ¥19,048 million. The equity in losses of affiliated companies was
mainly due to a write-down of goodwill that arose relating to InMobi Pte. Ltd. and PPLive Corporation. The
financing related expenses were mainly attributable to costs associated with the funds procured pursuant to abridge loan facility of up to ¥1.651 trillion, entered into in December 2012 (hereafter, “the bridge loan”) in
connection with the proposed acquisition2 of Sprint Nextel Corporation (hereafter “Sprint”). For further detailsof the bridge loan please refer to page 39 “(7) Additional Information (4) Financing” under “4. Consolidated
Financial Statements.”
Moreover, in the previous fiscal year, the Group recorded refinancing-related expenses of ¥24,956 million,
mainly for costs relating to newly procured funds for refinancing the SBM loan,3 and repayment of the SBM
loan.

(f) Ordinary Income
Ordinary income therefore totaled ¥653,214 million, for a ¥79,563 million (13.9%) year-on-year increase.

(g) Special Income
Special income totaled ¥11,383 million, for a ¥106,382 million year-on-year decrease.

This was mainly

because of decreases in gain on sale of investment securities and dilution gain from changes in equity interest.
In the previous fiscal year, a gain on sale of investment securities of ¥88,368 million was recorded, mainly due
to the delivery of shares of U.S. company Yahoo! Inc. to CITIBANK, N.A. In addition, a dilution gain fromchanges in equity interest of ¥20,185 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 ¥14,102 million, for a ¥45,057 million year-on-year decrease. A valuation loss on investment
securities of ¥9,772 million was recorded, mainly associated with a drop in the stock price of Zynga Inc., inwhich the Group holds shares.

Moreover, in the previous fiscal year, the Company recorded a premium

expense on advanced repayment of long-term debt of ¥21,875 million in relation to repayment of the SBM loan
by SoftBank Mobile Corp., a loss of liquidation of subsidiaries and affiliates of ¥19,071 million on theliquidation of the Company’s subsidiary Charlton Acquisition LLP, which held shares of Betfair Group plc as aholding company in the U.K., and a valuation loss on investment securities of ¥13,971 million.
1
2

3

The maximum amount of the bridge loan has been reduced. For further details please refer to page 39 “(7) Additional Information (4)Financing” under “4. Consolidated Financial Statements.”
When the acquisition of Sprint is completed, the Company expects to hold, through a U.S holding company, approximately 70% of Sprint’s soleparent company.
For further details please refer to page 36 “(7) Additional Information (2) Outline of acquisition” under “4. Consolidated
Financial Statements.”
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 Report
For the fiscal year ended March 31, 2013(i) Income Taxes
Provisions for current income taxes were ¥278,663 million and provisions for deferred income taxes were ¥8,511
million.

Total income taxes increased by ¥32,461 million year on year to ¥287,174 million.

The actual

effective tax rate4 for the fiscal year was 44.1%.

(j) Minority Interests in Net Income
Minority interests in net income totaled ¥73,916 million, mainly related to net income recorded at Yahoo Japan
Corporation.

(k) Net Income
As a result of the above, net income totaled ¥289,403 million, for a ¥24,349 million (7.8%) year-on-year
decrease.

(l) Comprehensive Income
Comprehensive income totaled ¥554,233 million, for a ¥197,245 million (55.3%) year-on-year increase. Of
this, comprehensive income attributable to owners of the parent was ¥480,498 million, for a ¥183,955 million(62.0%) year-on-year increase.

4

The actual effective tax rate = total income taxes divided by income before income taxes and minority interests

4SoftBank Corp. Consolidated Financial Report
For the fiscal year ended March 31, 2013

2. Results by Business Segment
Note:
Principal operational data are shown on pages 10-11 “(Reference 1: Principal Operational Data).”(a) Mobile Communications(Millions of yen)

Fiscal Year Ended
March 31, 2012

Fiscal Year Ended
March 31, 2013

ChangeChange %Net sales

2,144,899

2,277,479

132,580

6.2%

Operating income

429,236

467,829

38,5929.0%

5

・ 3,531,000 net subscriber additions

for the fiscal year.
・ ARPU for the fiscal year was ¥3,990, a ¥170 year-on-year decrease.
Data ARPU amounted to ¥2,590, a ¥80 year-on-year increase.
6< Revenue Recognition >In the Mobile Communications segment, net sales are mainly generated through telecom service revenue andsales of mobile handsets. The telecom services consist of voice and data services and are recognized asrevenue when services are provided to customers, based upon basic flat-rate monthly charges plus usage of the
network in accordance with price plans, and subject to discounts.
Sales of mobile handsets are recognized when merchandise is shipped to handset dealers. The agents sell themobile handsets to the customers, mainly by installment payments over a period of 24 months. SoftBank
Mobile 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 increased by ¥132,580 million (6.2%) year on year to ¥2,277,479 million. The main
factor behind the increase was an increase in telecom service revenue resulting from steady growth in the numberof mobile phone subscribers.
The segment’s operating expenses increased by ¥93,988 million (5.5%) year on year to ¥1,809,650 million.
The principal cause of this increase was higher depreciation and amortization recorded, mostly relating to theinstallation of additional base stations.
Operating income increased by ¥38,592 million (9.0%) year on year to ¥467,829 million.

5
6

The number of net subscriber additions includes prepaid mobile phones and communication module service subscribers.
Net communication module service subscriber additions for the fiscal year totaled 850,000 (rounded to the nearest thousand).
For definition and calculation method of ARPU, refer to page 12 “(Reference 2: Definition and Calculation Method of ARPU, etc., in the Mobile
Communications Business).”5

SoftBank Corp. Consolidated Financial Report
For the fiscal year ended March 31, 2013

< Number of Mobile Phone Subscribers >Net subscriber additions (new subscribers minus cancellations) for the fiscal year totaled 3,531,000. This wasprimarily the result of steady sales of iPhone7, Mimamori Phone (handset with security buzzer), and iPad7.

As

a result, the cumulative number of subscribers8 at the end of the fiscal year stood at 32,480,000, raising
SoftBank Mobile Corp.’s cumulative subscriber share by 1.4 percentage points year on year, to 24.7%.9< Number of Mobile Handsets Shipped and Units Sold >Handsets shipped for the fiscal year decreased by 124,000 year on year to 11,558,000. This was mainly the
result of a decrease in conventional mobile handsets shipped while the number of iPhones shipped increased.
The number of units sold (total number of new subscriptions and handset upgrades) for the fiscal year
increased by 812,000 year on year to 13,113,000. Of units sold, new subscriptions increased by 356,000 year
on year to 7,519,000, while handset upgrades increased by 456,000 year on year to 5,594,000.
The increase in units sold was mainly due to the success of various iPhone sales promotions.10< ARPU >ARPU for the fiscal year (based on cumulative subscribers including communication modules) decreased by¥170 year on year to ¥3,990. Out of this, voice ARPU declined ¥250 year on year to ¥1,400 and data ARPU
rose ¥80 year on year to ¥2,590.
The decline in voice ARPU mainly reflects dilution due to an increase in devices that do not have voicecommunication functionality (such as iPad and mobile data communications devices).
On the other hand, the increase in data ARPU was mainly the result of the continuing increase in the numberof high data-ARPU smartphone subscribers, although an increase in subscribers to low data-usage products suchas Mimamori Phone has had a dilution effect on data ARPU. Another factor contributing to the rise in data
ARPU was an increase in subscribers to smartphones compatible with the FDD-LTE service, SoftBank 4G LTE,
which started in September 2012.

7
8
9
10

iPhone and iPad are trademarks of Apple Inc.

The iPhone trademark is used under license from Aiphone K.K.

The cumulative number of subscribers includes prepaid mobile phones and communication module service subscribers (rounded to the nearest
thousand). The cumulative number of communication module service subscribers at the end of the fiscal year totaled 2,900,000.
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.
Including a promotion for new and upgrading customers offering discounts, a promotion offering discounts to upgrading existing customers
and allows their family members to use the old handset (if they make a new subscription), etc.

6SoftBank Corp. Consolidated Financial Report
For the fiscal year ended March 31, 2013

< Churn Rate and Upgrade Rate >The churn rate11 for the fiscal year was 1.09%, which was 0.03 of a percentage point lower year on year, and theupgrade rate11 for the fiscal year also decreased by 0.06 of a percentage point to 1.53%.

< Average Acquisition and Upgrade Cost per Subscriber >The average acquisition cost per subscriber12 for the fiscal year declined ¥4,200 year on year to ¥26,100. Thiswas 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 subscriber13 for the fiscal year increased by ¥1,200 year on year to ¥28,300.

11
12
13

For definition and calculation of the churn and upgrade rates, see page 12 “(Reference 2: Definition and Calculation Method of ARPU, etc., in
the Mobile Communications Business).”
The average commission paid to handset dealers per new subscription. New subscriptions include prepaid mobile phones and communication
modules.
The average commission paid to handset dealers per handset upgrade. Upgrades include communication modules.

7SoftBank Corp. Consolidated Financial Report
For the fiscal year ended March 31, 2013(b) Broadband Infrastructure(Millions of yen)

Fiscal Year Ended
March 31, 2012

Fiscal Year Ended
March 31, 2013

ChangeChange %Net sales

171,904

163,427(8,477)(4.9%)

Operating income

34,327

34,734406

1.2%< Overview of Operations >The segment’s net sales decreased by ¥8,477 million (4.9%) year on year to ¥163,427 million. This was mainly
because of decreases in the number of subscribers and ARPU for Yahoo! BB ADSL, which has a relatively higher
ARPU14 than Yahoo! BB hikari with FLET'S,15 while the number of subscribers for Yahoo! BB hikari with
FLET'S increased.
Operating income increased by ¥406 million (1.2%) year on year to ¥34,734 million. This was mainly due
to a decrease in sales commissions.
The cumulative number of Yahoo! BB subscribers (total of the cumulative number of Yahoo! BB ADSL
subscribers and the cumulative number of Yahoo! BB hikari with FLET’S subscribers16) at the end of the fiscal
year totaled 4,253,000 for a year-on-year increase of 44,000. Out of this, the cumulative number of Yahoo! BB
ADSL subscribers stood at 2,172,000, for a decrease of 428,000 from March 31, 2012, and the cumulative
number of Yahoo! BB hikari with FLET’S subscribers totaled 2,081,000, an increase of 473,000 from March 31,
2012.
(c) Fixed-line Telecommunications(Millions of yen)

Fiscal Year Ended
March 31, 2012

Fiscal Year Ended
March 31, 2013

ChangeChange %Net sales

367,645387,239

19,593

5.3％

Operating income

57,95067,003

9,053

15.6％

<Overview of Operations>
The segment’s net sales increased by ¥19,593 million (5.3%) year on year to ¥387,239 million. This was
mainly due to an increase in provision of telecommunication lines to Group companies such as SoftBank Mobile
Corp. and recording sales related to projects for installing telecommunications signal transfer stations.
Operating income increased by ¥9,053 million (15.6%) to ¥67,003 million. This was due to the increase in
net sales, combined with a decrease in lease payments for OTOKU Line equipment and a decrease ininterconnection charges paid to other operators at SoftBank Telecom Corp., following a reduction ininterconnection charges between operators.
14
15

16

Average Revenue Per User
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.
Number of users for which connection construction for FLET’S HIKARI line at central office of NTT East or NTT West is complete and whoare provided with services.

8

SoftBank Corp. Consolidated Financial Report
For the fiscal year ended March 31, 2013(d) Internet Culture(Millions of yen)
Fiscal Year Ended
March 31, 2012

Fiscal Year Ended
March 31, 2013

ChangeChange %Net sales

293,635

335,643

42,008

14.3％

Operating income

156,821

178,112

21,290

13.6％<Overview of Operations>
The segment’s net sales increased by ¥42,008 million (14.3%) year on year to ¥335,643 million. Overall
revenue growth was driven by revenue from promotion advertising,17 at Yahoo Japan Corporation as a result ofstrengthening various functions to enhance advertising efficiency and a vigorous sales drive, especially revenue
via smartphones increased.

There was also an increase in revenue from premium advertising,18 including

growth in advertisements on Brand Panel and Prime Display.

Growth in revenues from Yahoo! Premium ID,

game-related services and data center-related services also contributed to higher overall sales.
Operating income increased by ¥21,290 million (13.6%) year on year to ¥178,112 million.

This wasprimarily the result of the increase in net sales, as well as efforts to reduce costs such as sales commissions andsales promotion costs.

17

Text-based or graphic advertisements charged on a cost-per-click basis. Name changed from “listing advertising” from January 2013.
18 Graphical and flash advertising that appears next to content on the Internet. Brand Panel advertising is shown on Yahoo! JAPAN’s top page
Prime Display advertising is shown on pages other than Yahoo! JAPAN’s top page. Name changed from “display advertising” from January
2013.

9

SoftBank Corp. Consolidated Financial Report
For the fiscal year ended March 31, 2013

(Reference 1: Principal Operational Data）(a) Mobile Communications
Fiscal Year Ended March 31, 2012
Q1

Q2

Q3

Fiscal Year Ended March 31, 2013

Q4

Full
Year

Q1

Q2

Q3

Q4

Full
Year

(Thousands)

Net additions19(Postpaid)(Prepaid)
Market share20
among 4 operators (%)
Market share20
among 3 operators (%)

730
698
33

760
745
15

937
944
(7)

1,114
1,131
(17)

3,540
3,517
24

753
772
(19)

759
771
(12)

861
872
(11)

1,158
1,170
(12)

3,531
3,585
(55)

42.7

40.4

-

-

-

-

-

-

-

-

49.1

46.2

42.4

45.8

45.6

47.5

47.9

48.7

44.6

46.8

26,13926,89827,83528,94929,702

30,461

31,322

32,480

21.6

21.8

-

-

-

-

-

-

22.2

22.5

22.9

23.3

23.6

23.9

24.3

24.7

2,493

2,395

3,770

3,025

11,682

2,359

2,631

3,486

3,082

11,558

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

2,997
1,718
1,279

3,843
1,894
1,949

3,686
2,243
1,443

13,113
7,519
5,594

ARPU23

4,210

4,310

4,230

3,890

4,150

4,020

4,070

4,050

3,800

3,990

(Voice)24(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

1,490
2,580

1,450
2,610

1,190
2,620

1,400
2,590

36,20030,80025,70029,40030,30026,50023,00024,90029,10026,10029,00028,60025,80026,30027,10027,00026,40030,30028,00028,300

Churn rate27(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

1.06
1.00

1.12
1.06

1.14
1.09

1.09
1.03

(% per month)
Upgrade rate27

1.28

1.31

2.36

1.38

1.59

1.05

1.42

2.10

1.51

1.53

(Thousands)

Cumulative
subscribers19
Market share20
among 4 operators (%)
Market share20
among 3 operators (%)(Thousands)

Number ofhandsets shipped21(Thousands)

Units sold22(New subscriptions)(Handset upgrades)(Yen per month)(Yen)

Average acquisition cost
per subscriber25(Yen)

Average upgrade cost
per subscriber26(% per month)

19
20

21
22
23
24
25
26
27

Includes the number of prepaid mobile phones and communication module service subscribers (rounded to the nearest thousand).
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: the number of handsets shipped (sold) to handset dealers
Units sold: the total number of new subscriptions and handset upgrades
For definition and calculation method of ARPU, refer to page 12 “(Reference 2: Definition and Calculation Method of ARPU, etc., in the
Mobile Communications Business).”
Calculated including basic monthly charge.
The average commission paid to handset dealers per new subscription. New subscriptions include prepaid mobile phones and communication
modules.
The average commission paid to handset dealers per handset upgrade. Upgrades include communication modules.
For definition and calculation of the churn and upgrade rates, see page 12 “(Reference 2: Definition and Calculation Method of ARPU, etc., in
the Mobile Communications Business).”

10SoftBank Corp. Consolidated Financial Report
For the fiscal year ended March 31, 2013

(Reference)
Fiscal Year Ended March 31, 2012

Fiscal Year Ended March 31, 2013

Q1

Q2

Q3

Q4

Full Year

Q1

Q2

Q3

Q4

Full Year

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

4,370
1,610
2,760

4,370
1,570
2,800

4,120
1,300
2,820

4,290
1,520
2,770

(Yen per month)

ARPU23(excluding
communication
modules）(Voice) 24(Data)(b) Broadband Infrastructure
Yahoo! BB
Fiscal Year Ended March 31, 2012
Q1

Q2

Q3

4,118

4,145

3,009

Q4

Fiscal Year Ended March 31, 2013
Full Year

Q1

Q2

Q3

4,175

4,209

4,238

4,227

4,222

4,253

2,873

2,737

2,600

2,467

2,364

2,271

2,172

3,710

3,650

3,580

3,510

3,450

3,390

3,330

3,270

2.56

2.43

2.35

2.44

2.45

2.60

2.12

2.16

2.25

1,109

1,272

1,437

1,608

1,771

1,863

1,951

1,620

1,660

1,670

1,670

1,710

1,720

Q4

Full Year(Thousands)

Yahoo! BB cumulative
subscribers28
Yahoo! BB ADSL
(Thousands)

Cumulative
subscribers(Yen per month)

ARPU29(% per month)

Churn rate

2.28

Yahoo! BB hikari with FLET'S(Thousands)

Cumulative
subscribers30

2,081(Yen per month)

ARPU29

1,680

1,730

(c) Fixed-line TelecommunicationsOTOKU Line
Fiscal Year Ended March 31, 2012
Q1

Q2

Q3

1,669

1,679

1,678

6,650

6,570

6,550

Q4

Fiscal Year Ended March 31, 2013
Full Year

Q1

Q2

Q3

1,684

1,692

1,688

6,530

6,390

6,510

Q4

Full Year(Thousands)

Cumulative
lines

1,685

1,703

(Yen per month)

ARPU29

6,790

28

6,560

Total of the cumulative number of Yahoo! BB ADSL subscribers and the cumulative number of Yahoo! BB hikari with FLET’S subscribers.
29
Average Revenue Per User: average revenue per contract (rounded to the nearest ¥10)
30
Number of users for which connection construction for FLET’S HIKARI line at the central offices of NTT East or NTT West is complete andwho are provided with services.

11SoftBank Corp. Consolidated Financial Report
For the fiscal year ended March 31, 2013

(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 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 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.

12SoftBank Corp. Consolidated Financial Report
For the fiscal year ended March 31, 2013

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

Fiscal Year Ended March 31, 2012

Fiscal Year Ended March 31, 2013

Q1

Q2

Q3

Q4

Full
Year

Q1

Q2

Q3

Q4

Full
Year

MobileCommunications

84,076

98,39993,675

146,613422,766

82,464

134,003

164,660

211,788592,917

Broadband
Infrastructure

5,739

3,861

4,638

12,523

26,762

2,671

4,819

6,192

11,25424,937

Fixed-line
Telecommunications

6,320

8,281

10,654

14,621

39,877

8,236

8,280

10,586

14,542

41,646

Internet Culture

3,349

4,609

3,743

4,218

15,921

4,942

3,194

6,310

8,537

22,985

Others

1,710

5,338

2,041

1,958

11,047

94,970

1,942

2,179

3,644

102,736

Consolidated total

101,196

120,490

114,753

179,935

516,375

193,286

152,240

189,929

249,768

785,224(b) Depreciation and Amortization (excluding amortization of goodwill)（Millions of yen）

Fiscal Year Ended March 31, 2012

Fiscal Year Ended March 31, 2013

Q1

Q2

Q3

Q4

Full
Year

Q1

Q2

Q3

Q4

Full
Year

46,202

48,69149,26659,295

203,455

58,46762,26766,31976,786

263,840

3,540

3,452

3,507

3,894

14,395

3,441

3,475

3,545

4,278

14,741

9,188

9,684

9,957

10,96939,800

9,749

9,777

9,845

10,59439,967

Internet Culture

2,291

2,395

2,703

2,896

10,288

2,636

3,134

3,170

3,796

12,738Others

1,521

1,592

2,350

2,421

7,886

2,185

2,349

2,349

2,524

9,408

Consolidated total

62,74465,81667,78579,478275,825

76,48081,00485,23097,980340,696

MobileCommunications
Broadband
Infrastructure
Fixed-line
Telecommunications

3.

Forecasts on the Consolidated Operation Results for the Fiscal Year Ending March 2014 (April 1,2013 – March 31, 2014)

The Company has adopted the International Financial Reporting Standards (IFRS) in place of theJapanese-GAAP standards from the fiscal year ending March 31, 2014 (transition date: April 1, 2012). Under
IFRS the Company is projecting consolidated operating income from its domestic business of at least ¥1 trillion
in the fiscal year ending March 31, 2014. This includes an expected gain of approximately ¥150.0 billion
resulting from the re-evaluation of the existing interests held in GungHo Online Entertainment, Inc. at fair valueas GungHo Online Entertainment, Inc., which was an affiliate under the equity method, became a consolidated
subsidiary on April 1, 2013.

13

SoftBank Corp. Consolidated Financial Report
For the fiscal year ended March 31, 2013

(2) Qualitative Information Regarding Consolidated Financial Position
1.

Assets, Liabilities, and Equity

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

As of March 31, 2012

As of March 31, 2013

ChangeChange %Total assets

4,899,705

6,524,886

1,625,181

33.2%

Total liabilities

3,464,065

4,418,427

954,361

27.6%

Total equity

1,435,640

2,106,459

670,81946.7%(a) Current Assets
Current assets at the end of the fiscal year totaled ¥2,591,196 million, for a ¥680,744 million (35.6%) increase
from March 31, 2012, (hereafter “the previous fiscal year-end”).

The primary components of the change wereas follows:
・ Cash and deposits increased by ¥352,882 million from the previous fiscal year-end.
・ Other current assets increased by ¥322,700 million from the previous fiscal year-end, primarily because of anincrease of ¥193,591 million in derivative assets included in other current assets. This increase in derivative
assets was mainly due to a foreign currency forward contract for approximately US$17 billion for the
proposed acquisition of Sprint being marked to market at the end of the fiscal year. Please refer to page 40“(7) Additional Information (5) Foreign currency forward contracts” under “4. Consolidated Financial
Statements” and to page 54 “(8) Notes (Derivative Transactions)” for details about the foreign currency
forward contract.

(b) Fixed Assets
Fixed assets totaled ¥3,924,809 million at the end of the fiscal year, for a ¥941,256 million (31.5%) increase
from the previous fiscal year-end.
・ Property

The primary components of the change were as follows:

and equipment increased by ¥361,246 million from the previous fiscal year-end.

The mainincreases were ¥205,392 million in telecommunications equipment, ¥50,753 million in land, and ¥44,533
million in buildings and structures. The increase in telecommunications equipment was primarily due to new
acquisitions of equipment such as base stations in order to strengthen the communications network in the
Mobile Communications segment. The increases in land and buildings and structures were due primarily torecording the lease asset relating to the FUKUOKA YAFUOKU! DOME (hereafter the “YAFUOKU!
DOME”) on the consolidated balance sheet for the first quarter (the three-month period from April 1, 2012 toJune 30, 2012). In accordance with transitional measures, after the revision of the accounting standard forleases effective from April 1, 2008, the lease contract relating to the YAFUOKU! DOME continued to beaccounted for as an operating lease transaction. In March 2012, Fukuoka SOFTBANK HAWKS Marketing
Corp. entered into a purchase contract to acquire a trust beneficiary interest in the YAFUOKU! DOME in July
2015 and also concluded a new lease contract relating to the YAFUOKU! DOME. Since lease assets andliabilities relating to finance lease transactions concluded after April 1, 2008 are recorded on the consolidatedbalance sheet this leased asset is also recorded on the balance sheet. Although Fukuoka SOFTBANK

14SoftBank Corp. Consolidated Financial Report
For the fiscal year ended March 31, 2013

HAWKS Marketing Corp. entered into this contract in March 2012, since Fukuoka SOFTBANK HAWKS
Marketing Corp.’s fiscal year ends in 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 for the fiscal year.
・ Total intangible assets increased by ¥28,430 million from the previous fiscal year-end.

This was mainly

because software increased by ¥73,581 million as a result of new acquisitions of telecommunications
equipment, while goodwill decreased by ¥45,835 million. The decrease in goodwill resulted from regularamortization of the goodwill recorded when the Company acquired SoftBank Mobile Corp., SoftBank
Telecom Corp., and others, although new goodwill was recorded on Yahoo Japan Corporation’s acquisition of
the shares of CyberAgent FX Inc. and other items.
・ Investments and other assets increased by ¥551,579 million from the previous fiscal year-end.

This wasmainly due to a ¥532,410 million increase in investment securities. The primary components of the increase
were an increase of ¥291,837 million due to the acquisition by the Company’s subsidiary Starburst II, Inc. of a
US$3.1 billion convertible bond issued by Sprint, the Company’s acquisition of the shares of eAccess Ltd. of¥269,694 million, and Yahoo Japan Corporation’s acquisition of 42.6% of the shares (voting rights at the timeof acquisition) of ASKUL Corporation for ¥33,038 million. The acquisition of the shares of eAccess Ltd.
reflected an increase of ¥219,395 million due to the issue of new shares in connection with the share exchangewith eAccess Ltd. and the Company undertaking the full amount of a capital increase amounting to ¥49,000
million. These increases were partially offset by a decrease of ¥51,207 million as a result of Alibaba Group
Holding Limited, a Company equity method affiliate, acquiring the shares of Alibaba.com Limited, asubsidiary of Alibaba Group Holding Limited, through a privatization completed in June 2012. Also adecrease of ¥19,197 million, mainly associated with the drop in the stock price of Zynga Inc., was recorded.
Please refer to page 36 “(7) Additional Information” and to page 47 “(8) Notes (Consolidated Statements of
Changes in Equity) 5. Changes in foreign affiliate’s interests in its subsidiary” under “4. Consolidated
Financial Statements” for details about the Sprint transaction and Alibaba.com privatization, respectively.

(c) Current Liabilities
Current liabilities at the end of the fiscal year totaled ¥2,590,183 million, for a ¥666,458 million (34.6%)
increase from the previous fiscal year-end.

The primary components of the change were as follows:

・ Short- term borrowings increased by ¥410,323 million from the previous fiscal year-end.

This was mainly

attributable to the initial draw-down in December 2012 of ¥250,000 million under the bridge loan facility of
up to an aggregate of ¥1.65 trillion concluded with financial institutions in the same month in connection withfunding the proposed acquisition of Sprint. In addition, borrowings on the Company’s credit line facility
increased by ¥100,000 million. Please refer to page 39 “(7) Additional Information (4) Financing” under “4.
Consolidated Financial Statements” for details about the bridge loan.
・ Accounts payable – other and accrued expenses decreased by ¥83,362 million from the previous fiscal

year-end. This was mainly the result of the payment of an accounts payable – other of ¥200,000 million in
April 2012 relating to a transaction with the Vodafone Group executed in December 2010 by the Company,
while SoftBank Mobile Corp. recorded an increase in accounts payable relating to capital expenditures.

15

SoftBank Corp. Consolidated Financial Report
For the fiscal year ended March 31, 2013

・ Short-term deferred tax liabilities increased by ¥71,974 million from the previous fiscal year-end.

This wasmainly deferred tax liabilities relating to derivative assets.
・ The current portion of corporate bonds increased by ¥60,012 million from the previous fiscal year-end.

This

was mainly due to reclassifications from long-term liabilities to current liabilities of unsecured straight
corporate bonds in the amount of ¥205,000 million, along with the redemption of unsecured straight corporate
bonds in the amount ¥95,000 million and a reduction of ¥49,988 million in the Convertible Bond due 2013
due to its conversion into common stock of the Company.

For further details regarding the issuance andredemption of corporate bonds please refer to page 20 “(Reference: Major Financing Activities)”(d) Long-term Liabilities
Long-term liabilities totaled ¥1,828,243 million at the end of the fiscal year, for a ¥287,903 million (18.7%)
increase from the previous fiscal year-end.

The primary components of the change were as follows:・ Corporate bonds increased by ¥275,000 million from the previous fiscal year-end.

This was due to theCompany issuing unsecured straight corporate bonds in the total amount of ¥480,000 million.

Meanwhile,the total amount of ¥205,000 million of unsecured straight corporate bonds was reclassified from long-term tocurrent liabilities, as the redemption dates came to be within one year.
・ Long-term debt decreased by ¥205,779 million from the previous fiscal year-end.
・ Lease obligations increased by ¥179,038 million from the previous fiscal year-end.

This was mainly due toan increase in telecommunications equipment through lease transactions, as well as the lease contract related
to the YAFUOKU! DOME concluded by Fukuoka SOFTBANK HAWKS Marketing Corp. (please refer topage 14 “(b) Fixed Assets” for details).

(e) Equity
Equity totaled ¥2,106,459 million at the end of the fiscal year, for a ¥670,819 million (46.7%) increase from theprevious fiscal year-end.

The equity ratio increased by 4.9 percentage points from the previous fiscal year-end

to 24.0%. The primary components of the change were as follows:(Shareholders’ equity)
Shareholders’ equity increased by ¥441,296 million from the previous fiscal year-end to ¥1,399,244 million.
・ Common stock increased by ¥24,974 million from the previous fiscal year-end.

This was the result of theconversion of the Convertible Bond due 2013 into common stock of the Company.
・ Additional paid-in capital increased by ¥193,126 million from the previous fiscal year-end.

This primarilyreflected an increase of ¥219,395 million due to the issue of new shares in connection with the share exchange
conducted with eAccess Ltd. in January 2013, and an increase of ¥24,939 million due to the conversion of theConvertible Bond due 2013 into common stock of the Company. On the other hand, a decrease of ¥51,207
million was recorded as a result of Alibaba Group Holding Limited, a Company equity method affiliate,
acquiring the shares of Alibaba.com Limited, a subsidiary of Alibaba Group Holding Limited, through a
privatization completed in June 2012.

Please refer to page 47 “(8) Notes (Consolidated Statements of

Changes in Equity) 5. Changes in foreign affiliate’s interests in its subsidiary” under “4. Consolidated

16

SoftBank Corp. Consolidated Financial Report
For the fiscal year ended March 31, 2013

Financial Statements” for details about Alibaba.com privatization.
・ Retained earnings increased by ¥223,082 million from the previous fiscal year-end.

This was primarily

because net income of ¥289,403 million was recorded, although this was partially offset by a year-end
dividend for the year ended March 31, 2012 of ¥43,940 million, and an interim dividend for the year ended
March 31, 2013 of ¥22,104 million, resulting in a combined decrease of ¥66,044 million in retained earnings.

(Accumulated other comprehensive income)Accumulated other comprehensive income of ¥169,841 million were recorded as credit at the end of the fiscal
year, a ¥191,094 million increase from the previous fiscal year-end.
・ Net unrealized gain on available-for-sale securities was ¥4,163 million at the end of the fiscal year, a ¥6,403

million decrease from the previous fiscal year-end. This decrease was mainly associated with the drop in thestock price of Zynga Inc.
・ Deferred gain on derivatives under hedge accounting improved by ¥115,151 million from the previous fiscal

year-end to ¥114,157 million and recorded as credit.

Please refer to page 54 “(8) Notes (Derivative

Transactions)” under “4. Consolidated Financial Statements” for details.
・ Foreign currency translation adjustments improved by ¥82,346 million from the previous fiscal year-end to¥51,519 million and were recorded as credit at the end of the fiscal year. This was due to the yen’s
depreciation.
(Minority interests)
・ Minority interests totaled ¥536,637 million at the end of the fiscal year, for a ¥38,590 million increase fromthe previous fiscal year-end.

2.

Cash Flows

Cash flows during the fiscal year were as follows:
Cash and cash equivalents at the end of the fiscal year totaled ¥1,364,629 million, for a ¥350,071 million increase
from the previous fiscal year-end.
(Millions of yen)

Fiscal Year Ended
March 31, 2012

Fiscal Year Ended
March 31, 2013

ChangeCash flows from operating activities

740,227

894,459

154,232

Cash flows from investing activities(375,655)(919,769)(544,114)(Reference) Free cash flow

364,571(25,310)(389,881)

Cash flows from financing activities(196,667)

365,494562,161(a) Cash Flows from Operating Activities
Net cash provided by operating activities totaled ¥894,459 million (compared with ¥740,227 million provided in
the previous fiscal year). The primary components of the change were as follows:・ Income before income taxes and minority interests totaled ¥650,494 million.
・ The main items added to income before income taxes and minority interests were ¥340,696 million in17

SoftBank Corp. Consolidated Financial Report
For the fiscal year ended March 31, 2013

depreciation and amortization, ¥64,113 million in amortization of goodwill, and ¥33,523 million in equity inlosses of affiliated companies.
・ Income taxes paid was ¥216,215 million.

(b) Cash Flows from Investing Activities
Net cash used in investing activities was ¥919,769 million (compared with ¥375,655 million used in the previous
fiscal year). The primary components of the change were as follows:・ Outlays for purchase of property and equipment, and intangibles amounted to ¥548,602 million.

The mainfactor was capital expenditures in the telecommunications-related businesses.
・ Outlays for purchase of marketable and investment securities were ¥368,511 million.

This was mainly due tothe acquisition by the Company’s subsidiary Starburst II, Inc. of a US$3.1 billion convertible bond issued by
Sprint, the Company’s undertaking of the full amount of a capital increase of ¥49,000 million conducted by its
equity method affiliate eAccess Ltd., and Yahoo Japan Corporation’s acquisition of 42.6% of the shares(voting rights at the time of acquisition) of ASKUL Corporation for ¥33,038 million.

As a result, free cash flow (the combined net cash flows from operating activities and investing activities) for the
fiscal year was a negative ¥25,310 million (compared with a positive ¥364,571 million in the previous fiscal
year), for a year-on-year decrease of ¥389,881 million.

(c) Cash Flows from Financing Activities
Net cash provided by financing activities was ¥365,494 million (compared with ¥196,667 million used in theprevious fiscal year). The primary components of the change were as follows:(Items increasing cash flows)
・ Proceeds included ¥474,607 million from issuance of bonds, ¥350,131 million from an increase in short-termborrowings, net, ¥330,145 million from the sale and leaseback of equipment newly acquired, and ¥153,314
million from long-term debt.
(Items decreasing cash flows)・ Outlays included ¥299,234 million for the repayment of long-term debt, ¥206,096 million for the repayment oflease obligations, ¥200,444 million for payments for repurchase of minority interests and long-term debt,¥95,074 million for the redemption of bonds, and ¥65,843 million for the payment of dividends.

The

payments for repurchase of minority interests and long-term debt are the amount paid to the Vodafone Groupin April 2012, and various related fees. Please refer to page 48 “(8) Notes (Consolidated Statements of Cash
Flows) 7. Payments for repurchase of minority interests and long-term debt” under “4. Consolidated Financial
Statements” for details.

18SoftBank Corp. Consolidated Financial Report
For the fiscal year ended March 31, 2013(d) Trends in Cash Flow-related Indicators
A summary of trends in cash flow-related indicators is presented below.

Fiscal year ended
March 31, 2011

Fiscal year ended
March 31, 2012

Fiscal year ended
March 31, 2013

Equity ratio

13.3%

19.1%

24.0%

Equity ratio (Market cap.)

77.2%

54.9%

79.3%

Debt repayment period

2.2 years

1.5 years

1.8 years

Interest coverage ratio

8.9

16.3

31.3

Notes:
1. The above indicators are calculated using the following formulas based on consolidated figures:
Equity ratio: shareholders’ equity divided by total assets.
Equity ratio (market cap.): market capitalization divided by total assets.
Debt repayment period: interest-bearing debt divided by EBITDA.
Interest coverage ratio: EBITDA divided by interest expenses.
2. EBITDA: operating income (loss) + depreciation and amortization + including amortization of goodwill
3. Market capitalization is calculated based on the number of shares outstanding, net of treasury stock.
4. Interest-bearing debt: short-term borrowings + commercial paper + current portion of corporate bonds +corporate bonds + long-term debt. Lease obligations are excluded.
Interest-bearing debt for the fiscal year ended March 31, 2011 excludes the corporate bonds (WBS Class B2
Funding Notes, issued by J-WBS Funding K.K.) with a face value of ¥27,000 million acquired by theCompany during the fiscal year ended March 31, 2010 that were issued under the whole businesssecuritization scheme associated with the acquisition of Vodafone K.K.
5. Interest expense is the corresponding figure on the Consolidated Statements of Income.

19SoftBank Corp. Consolidated Financial Report
For the fiscal year ended March 31, 2013

(Reference: Major Financing Activities)
The major financing activities in the fiscal year were as follows:
Item
Bond issuances

Company Name
SoftBank Corp.

Detailsth

39 Unsecured Straight Corporate Bond
(Fukuoka SoftBank HAWKS Bond)

40th Unsecured Straight Corporate Bond

41st Unsecured Straight Corporate Bond
(Fukuoka SoftBank HAWKS Bond)

42nd Unsecured Straight Corporate Bond

Bond
redemption

Increase or
decrease in
debt

SoftBank Corp.

SoftBank Corp.

28th Unsecured Straight Corporate Bond

Summary
Issue date: September 24, 2012
Redemption date: September 22, 2017
Total amount of issue: ¥100 billion
Interest rate: 0.74%/year
Issue date: September 14, 2012
Redemption date: September 14, 2017
Total amount of issue: ¥10 billion
Interest rate: 0.732%/year
Issue date: March 12, 2013
Redemption date: March 10, 2017
Total amount of issue: ¥300 billion
Interest rate: 1.47%/year
Issue date: March 1, 2013
Redemption date: March 1, 2017
Total amount of issue: ¥70 billion
Interest rate: 1.467%/year
Redemption date: July 24, 2012
Redemption amount: ¥30 billion

29th Unsecured Straight Corporate Bond
(Fukuoka SoftBank HAWKS Bond)

Redemption date: September 18, 2012
Redemption amount: ¥65 billion

Increase of ¥203,600 million

Mainly bridge loan concluded for the
proposed acquisition of Sprint.
For further details of the bridge loan please refer to page
39 “(7) Additional Information (4) Financing” under “4.
Consolidated Financial Statements.”

Execute saleand lease back

SoftBank Mobile Corp. etc.

Procurement of ¥330,145 million

Capital expenditure via finance leases(3) Fundamental Policy for Distribution of Profit, and Dividend for the Fiscal Year
SoftBank Corp.’s basic policy is to maintain a sound financial status while both investing aggressively to ensuresustained growth and returning profits to shareholders. Returns to shareholders include cash dividends, paid
twice per year in principle as an interim dividend and a year-end dividend.
The Board of Directors’ meeting resolved to propose a year-end dividend for the fiscal year of ¥20.00 per
share. Together with the interim dividend of ¥20.00 per share paid in December 2012, this brings the annual
dividend for the fiscal year to ¥40.00 per share, the same as the previous fiscal year.

20SoftBank Corp. Consolidated Financial Report
For the fiscal year ended March 31, 2013

2.

The SoftBank GroupAs of March 31, 2013, the Group’s business segments were comprised of the following consolidated subsidiaries
and equity method companies.

The segments’ main businesses were as follows.

The Company owns 100% of shares issued by WILLCOM, Inc. However WILLCOM, Inc. is in the processof rehabilitation under the Corporate Reorganization Act and the Company does not have effective control over
WILLCOM, Inc. Therefore, WILLCOM, Inc. is not treated as a subsidiary.

Consolidated
Subsidiaries

Equity Method
Non-consolidated
Subsidiaries andAffiliates

Mobile Communications

3

1

Broadband
Infrastructure

3－

Fixed-line
Telecommunications

2－

Provision of fixed-line telecommunications, etc.
(Core company: SoftBank Telecom Corp.31)

Internet Culture

2212Internet-based advertising operations, e-commerce site
operations such as YAFUOKU! and Yahoo! Shopping,membership services, etc.
(Core company: Yahoo Japan Corporation31)

120

70

Distribution of PC software and peripherals, Fukuoka
SoftBank HAWKS related businesses, etc.

150

83

Business Segments

Reportablesegments

Others

Total

Main Business of Segment and Name of Business
Provision of mobile communication services and sale ofmobile handsets accompanying the services, etc.
(Core company: SoftBank Mobile Corp.)
Provision of high-speed Internet connection service, IP
telephony service, and provision of content, etc.
(Core company: SoftBank BB Corp.31)［Listed Companies］
The Company’s six following consolidated subsidiaries were listed on domestic stock exchanges as of March 31,
2013:
Company NameYahoo Japan Corporation

31

Listed ExchangeTokyo Stock Exchange First section
Osaka Stock Exchange JASDAQ (Standard)

SoftBank Technology Corp.

Tokyo Stock Exchange First section

Vector Inc.

Osaka Stock Exchange JASDAQ (Standard)

ITmedia Inc.

Tokyo Stock Exchange Mothers

Carview Corporation

Tokyo Stock Exchange Mothers

ValueCommerce Co., Ltd.

Tokyo Stock Exchange First section

Although SoftBank BB Corp., SoftBank Telecom Corp., and Yahoo Japan Corporation are included as consolidated subsidiaries in the
Broadband Infrastructure, Fixed-line Telecommunications, and Internet Culture segments, respectively, SoftBank BB Corp., SoftBank Telecom
Corp., and Yahoo Japan Corporation operate multiple businesses and therefore their operating results are allocated to multiple businesssegments.

21

SoftBank Corp. Consolidated Financial Report
For the fiscal year ended March 31, 2013

3. Management Policies(1) Basic Management Approach
The SoftBank Group is guided by a corporate philosophy of “Information Revolution – Happiness for everyone.”The Group aims to be a provider of the most essential technologies and services to people around the world
through its endeavors in various businesses in the information industry, while maximizing its enterprise value.

(2) Medium- to Long-term Strategies
1.

Focus on Mobile Internet

In the ICT market the rapid penetration32 of smartphones and tablets will cause a shift from PCs to mobile
devices as the preferred means of accessing the Internet. One of the Group’s strategies is to concentrate on
business development in the field of mobile Internet, which is projected to grow in line with these changes.
In line with this strategy, the Group is currently working to strengthen its network and provide high-speed data
communication services, enhance its lineup of smartphones and tablets, expand its mobile content, optimize
services such as e-commerce for mobile devices, and enhance its cloud services, among other initiatives. By
promoting mobile Internet usage, the entire SoftBank Group plans to increase revenues from use of data
communication services and other services and content.

2.

Forming and Expanding a Strategic Synergy GroupThe information industry is characterized by rapid changes in technology, business models, and market needs.
To become a provider of the most essential technologies and services to people around the world, it is imperativethat the Group be flexible regarding any specific technologies or business models, and continue transforming
itself repeatedly in line with the changes in the times, expanding and changing its lines of business.
The Group launches new services and businesses from within the Group, and also invests in companies
possessing outstanding technologies or business models, or establishes joint ventures with them to form andexpand a “strategic synergy group” on a global scale.
Each company in the strategic synergy group conducts business and makes decisions autonomously,organically combining their respective strengths to create synergies. In this way, the entire group will realize
sustainable growth.

3.

Expand Business Scale through Entry into the U.S.

The U.S. market holds great potential for rapid expansion in the mobile Internet field. It has approximately 350
million cumulative mobile phone subscribers33 –more than twice the number in Japan– and the number of active
smartphones has reached 220 million.34

The SoftBank Group expects to complete its acquisition of U.S.

company Sprint On July 1, 2013.35 Through this acquisition the Group aims to establish an operating base in

32
33
34
35

Yano Research Institute Ltd., Mobile Phones/Smart Devices Market 2012-2013
As of December 31, 2012. Wireless Intelligence, 2013.
As of January 31, 2013. Flurry Analytics, Active Devices during January 2013.
A shareholder class action petition against Sprint, Sprint’s board of directors, the Company and certain of its subsidiaries has been filed in the
U.S., demanding to enjoin the acquisition and unspecified monetary damages. The class action petition is against the members of the board of
directors of Sprint for breaching their fiduciary duties, and against the Company for aiding and abetting the same.

22

SoftBank Corp. Consolidated Financial Report
For the fiscal year ended March 31, 2013

the U.S. market, thereby expanding its business scale and allowing it to capture the growth of this market going
forward.
After the acquisition is complete, the SoftBank Group is expected to have one of the largest combined
subscriber bases36 in the Japanese and U.S. markets as a mobile network operator. This will enable the Groupto leverage benefits of scale to the fullest extent in developing its business, including procurement of mobile
handsets and network equipment and provision of content and services such as games and video by Group
companies.

(3) Important Management Issues for the Company
1.

Mobile Communications Network Enhancement in JapanThe Group recognizes the need to enhance its network for the mobile communications services provided by
SoftBank Mobile Corp. As in the fiscal year ended March 31, 2013, the Group will continue measures toexpand the telecommunications service area, cope with network traffic increase, and prepare the network forhigh-speed data communication services.
The Group will take measures to disperse the load of increased network traffic by working ahead of schedule
to construct base stations compatible with the 900 MHz band that can efficiently cover wide areas, as well as
increasing the number of Wi-Fi spot installations and utilizing the AXGP network of its consolidated subsidiary
Wireless City Planning Inc. Furthermore, to make high-speed data communication services more accessible,
the Group will install more LTE-compatible base stations and make active use of the 1.7 GHz band LTE networkof eAccess Ltd., which became a Group company in January 2013.

2.

Strengthen the Operating base in the Japanese and U.S. Markets

Following the completion of the acquisition of Sprint, which is expected to close on July 1, 2013, the Group
expects to become a mobile operator with one of the largest subscriber bases36 in the Japanese and U.S. markets.
Looking ahead, the Group will need to strengthen its operating base across both markets and consolidate its
position as one of the world’s largest mobile Internet companies.
In the Japanese market, SoftBank Mobile Corp. and other Group companies will build a solid foundation forthe operating base through measures such as strengthening the network, bolstering sales activities, improving
customer satisfaction, and enhancing content.
Meanwhile, in the U.S. market the Group will enhance Sprint’s competitive capabilities and establish a strong
operating base.

To this end, it will leverage the knowledge it has cultivated in Japan with regard tosmartphones and communications networks, and its experience in executing measures boldly and swiftly in a
way unheard of among its Japanese competitors.

36

Figures for the U.S. are as of December 31, 2012. Wireless Intelligence, 2013. Telecommunication Carriers Association data and corporate
public disclosures.

23

SoftBank Corp. Consolidated Financial Report
For the fiscal year ended March 31, 20133.

Swiftly Reduce Net Interest-bearing Debt37

The Group’s net interest-bearing debt on March 31, 2013 stood at ¥733,843 million. For the year ending
March 31, 2014 the Group expects this amount to increase significantly due to the procurement of funds for theacquisition of Sprint.
The Group will work to reduce net interest-bearing debt swiftly.

To achieve this, the Group will leverage theabundant cash flows generated by its strong business in Japan, particularly in the Mobile Communications
segment.

37

Net interest-bearing debt: interest-bearing debt - cash position
Interest-bearing debt: short-term borrowings + commercial paper + current portion of corporate bonds + corporate bonds + long-termborrowings. Lease obligations are not included
Cash position: cash and cash deposits + marketable securities recorded as current assets

24SoftBank Corp. Consolidated Financial Report
For the fiscal year ended March 31, 2013

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

As ofMarch 31, 2013

AmountAmountASSETS
Current assets:
Cash and deposits
Notes and accounts receivable - tradeMarketable securities¥1,016,251¥1,369,134

661,287

662,186

4,575

4,703

Merchandise and finished products

42,61843,845

Deferred tax assets

56,46950,580

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

168,264

490,965(39,014)(30,219)

1,910,452

2,591,196

Buildings and structures

77,404

121,938

Telecommunications equipment

988,541

1,193,934

Telecommunications service lines

65,21359,973

Land

23,17573,929Construction in progress

80,501137,078

Other property and equipment

61,55570,784

Total property and equipment

1,296,393

1,657,640

Goodwill

780,242

734,407

Software310,151

383,732

Other intangibles

36,12036,805

1,126,514

1,154,945

Investment securities

338,198

870,608

Deferred tax assets

104,327

99,966

134,076

158,558(15,957)
560,6442,983,553(16,909)
1,112,224
3,924,809

5,699

8,879

¥4,899,705¥6,524,886

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

25SoftBank Corp. Consolidated Financial Report
For the fiscal year ended March 31, 2013

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

As ofMarch 31, 2013

AmountAmountLIABILITIES AND EQUITYCurrent liabilities:
Accounts payable - trade
Short-term borrowings¥190,532¥194,653

403,167

813,490

Current portion of corporate bonds
Accounts payable - otherand accrued expenses

144,988

205,000

835,053

751,690

Income taxes payable

125,116

179,558

Deferred tax liabilities

071,974Current portion of lease obligations

152,682

192,603

Other current liabilities

72,184

181,212

Total current liabilities

1,923,725

2,590,183

Corporate bonds

459,900

734,900

Long-term debt

560,070

354,290

Deferred tax liabilities

20,37017,939Liability for retirement benefits

14,953

14,505

Allowance for point mileage

32,07422,548

Lease obligations

347,699

526,738

Other liabilities

105,272

157,319

Total long-term liabilities

1,540,339

1,828,243

Total liabilities

3,464,065

4,418,427

Common stock

213,797

238,772

Additional paid-in capital

236,562

429,689

Retained earnings

530,534

753,616

Less: Treasury stock(22,947)(22,833)

Total shareholders’ equity

957,947

1,399,244

Unrealized gain on available-for-sale securities
Deferred gain (loss) on derivatives under hedge
accounting
Foreign currency translation adjustments

10,566

4,163

(993)

114,157(30,826)

51,519Total accumulated other comprehensive income (loss)(21,253)

169,841

898

735

Minority interests

498,047

536,637

Total equity

1,435,640

2,106,459

Total liabilities and equity¥4,899,705¥6,524,886

Long-term liabilities:

Equity:Stock acquisition rights

26

SoftBank Corp. Consolidated Financial Report
For the fiscal year ended March 31, 2013

(2) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income
Consolidated Statements of Income(Millions of yen)

Fiscal year ended
March 31, 2012
April 1, 2011 toMarch 31, 2012
AmountFiscal year ended
March 31, 2013
April 1, 2012 toMarch 31, 2013
AmountNet sales
Cost of sales
Gross profit¥3,202,435¥3,378,365

1,485,750

1,590,740

1,716,685

1,787,625

Selling, general and administrative expenses

1,041,401

1,042,625

675,283

745,000

1,829

3,310

2,570

3,215

-

2,054

Operating income
Interest income
Dividends income
Gain on investments in partnership
Other non-operating income
Non-operating income
Interest expense
Equity in losses of affiliated companies
Financing related expenses
Refinancing related expenses
Other non-operating expenses
Non-operating expenses

6,908

11,19911,308

19,77962,20636,7362,947

33,523-19,04824,956-

22,831

22,256112,940

111,565

Ordinary income

573,651

653,214

Gain on sale of investment securities

88,368

5,196

Dilution gain from changes in equity interest

20,185

4,006

-

1,778

1,985

-

7,225

402

Special income

117,765

11,383

Valuation loss on investment securities
Unrealized loss on valuation of investments and loss onsale of investments at subsidiaries in the U.S., net
Premium expense on advanced repayment oflong-term debt
Loss on liquidation of subsidiaries and affiliates
Other special losses
Special loss

13,971

9,772

-

1,524

21,875-

19,071

-

4,242

2,805

59,16014,102

Income before income taxes and minority interests
Income taxes:
Current
Deferred632,256

650,494

196,509278,663

58,203

8,511

Total income taxes

254,712287,174

377,543

363,319

63,79073,916¥313,752¥289,403

Gain on step acquisitions
Unrealized appreciation on valuation of investments andloss on sale of investments at subsidiaries in the U.S.,net
Other special income

Income before minority interests
Minority interests in net income
Net income

27SoftBank Corp. Consolidated Financial Report
For the fiscal year ended March 31, 2013

Consolidated Statements of Comprehensive Income(Millions of yen)

Fiscal year ended
March 31, 2012
April 1, 2011 toMarch 31, 2012
AmountFiscal year ended
March 31, 2013
April 1, 2012 toMarch 31, 2013
AmountIncome before minority interests
Other comprehensive income (loss)
Unrealized loss on available-for-sale securities
Deferred gain (loss) on derivatives under hedge accounting
Foreign currency translation adjustment
Share of other comprehensive income (loss) of affiliatedcompanies accounted for using equity method
Total other comprehensive income (loss)¥377,543¥363,319(25,780)(8,120)(12,661)

117,858

21,32865,906(3,442)

15,269(20,554)

190,914Comprehensive income

356,988554,233

Owners of the parent

296,543

480,498

Minority interests

60,44573,735Comprehensive income attributable to28

SoftBank Corp. Consolidated Financial Report
For the fiscal year ended March 31, 2013(3)Consolidated Statements of Changes in Equity
Fiscal year from April 1, 2011 to March 31, 2012:(Millions of yen)
Shareholders’ equity

Balance at April 1, 2011

Accumulated other comprehensive income (loss)
Unrealized gain Deferred gain (loss)
Foreign currency(loss) on
on derivatives
translation
available-forunder hedge
adjustments
sale securities
accounting

Commonstock

Additional
paid-in
capitalRetainedearnings

Treasury stock¥188,775¥212,510¥222,277¥(240)¥623,321¥34,920¥ 11,224¥(50,213)

25,022

24,979--50,002

-

-

-

Total

Stock acquisitionrightsMinority
interests

Total equity¥(4,068)¥703¥259,661¥879,618---

50,002

Total

Changes of items during the year
Exercise of warrants
Cash dividends--(5,411)-(5,411)

-

-

-

-

-

-

(5,411)

Net income--

313,752-

313,752

-

-

-

-

-

-

313,752

Purchase of treasury stock
Adjustments of retained earnings due to change
in scope of consolidation
Changes in foreign affiliate’s interests in its
subsidiary
Items other than changes in shareholders’equity, net

-

-

-

(22,706)(22,706)

-

-

-

-

-

-

(22,706)

-

-

(83)

-

(83)

-

-

-

-

-

-

(83)

-

(927)

-

-

(927)

-

-

-

-

-

-

(927)

-

-

-

-

-

(24,354)(12,217)

19,387(17,184)

195

238,385

221,396

Total changes in the year

25,022

24,052308,257(22,706)

334,625(24,354)(12,217)

19,387(17,184)

195

238,385

556,021

Balance at March 31, 2012

¥213,797¥236,562¥530,534¥(22,947)¥957,947¥10,566¥ (993)¥(30,826)¥(21,253)¥898¥498,047¥1,435,640

29

SoftBank Corp. Consolidated Financial Report
For the fiscal year ended March 31, 2013

Fiscal year from April 1, 2012 to March 31, 2013:(Millions of yen)
Shareholders’ equity

Accumulated other comprehensive income (loss)
Unrealized Deferred gain(loss) Foreign currency
gain(loss) on
on derivatives
translation
available-forunder hedge
adjustments
sale securities
accounting

Stock acquisitionrightsMinority
interests

Total equity¥(21,253)¥898¥498,047¥1,435,640

-

-

-

-

49,914

-

-

-

-

-

(66,044)

-

-

-

-

-

289,403

Commonstock

Additional
paid-in
capitalRetainedearnings

Treasury stock

Total¥213,797¥236,562¥530,534¥(22,947)¥957,947¥10,566¥ (993)¥(30,826)

24,97424,939--49,914--

Cash dividends--(66,044)-(66,044)-

Net income--

289,403-289,403-

Balance at April 1, 2012

Total

Changes of items during the year
Exercise of warrants

Purchase of treasury stock

-

-

-

(85)

(85)

-

-

-

-

-

-

(85)

Disposal of treasury stock

-

13

-

199

212

-

-

-

-

-

-

212

219,395--

219,395

-

-

(276)

-

(276)

-

-

-

-

-

-

(276)

-

(51,222)--(51,222)

-

-

-

-

-

-

(51,222)

-

-

-

-

-

(6,403)

115,151

82,346

191,094(162)

38,590229,522

Total changes in the year

24,974

193,126

223,082113

441,296(6,403)

115,151

82,346

191,094(162)

38,590670,819

Balance at March 31, 2013

¥238,772¥429,689¥753,616¥(22,833)¥1,399,244¥4,163¥ 114,157¥51,519¥169,841¥735¥536,637¥2,106,459

Increase by share exchanges
Adjustments of retained earnings due to change
in scope of consolidation
Changes in foreign affiliate’s interests in its
subsidiary
Items other than changes in shareholders’equity, net

30219,395

SoftBank Corp. Consolidated Financial Report
For the fiscal year ended March 31, 2013

(4) Consolidated Statements of Cash Flows(Millions of yen)

Fiscal year ended
March 31, 2012

Fiscal year ended
March 31, 2013

April 1, 2011 toMarch 31, 2012

April 1, 2012 toMarch 31, 2013

Cash flows from operating activities:
Income before income taxes and minority interests¥632,256¥650,494

Depreciation and amortization

275,825

340,696

Amortization of goodwill

62,606

64,113Equity in losses of affiliated companies

2,947

33,523

Dilution gain from changes in equity interest, net(19,685)(3,559)Valuation loss on investment securities
Unrealized (appreciation) loss on valuation of investments andloss on sale of investments at subsidiaries in the U.S., net

13,971

9,772(1,985)

1,524

Gain on sale of marketable and investment securities, net(88,278)(4,093)Foreign exchange gain, net(255)(2,322)

Interest and dividend income(4,399)(6,526)

Interest expense

62,20636,736(Increase) decrease in receivables - trade(5,031)

2,656(Decrease) increase in payables - trade(3,004)

2,656

66,95814,740994,130

1,140,414

4,222

5,359

Interest paid

(62,485)(35,098)

Income taxes paid

(195,640)(216,215)

740,227

894,459

Adjustments for:

Changes in operating assets, and liabilities

Other, net
Sub-totalInterest and dividends received

Net cash provided by operating activities- Continued -31SoftBank Corp. Consolidated Financial Report
For the fiscal year ended March 31, 2013

Consolidated Statements of Cash Flows (Continued)(Millions of yen)

Fiscal year ended
March 31, 2012

Fiscal year ended
March 31, 2013

April 1, 2011 toMarch 31, 2012

April 1, 2012 toMarch 31, 2013

Cash flows from investing activities:
Purchase of property and equipment, and intangibles¥ (455,023)¥ (548,602)

Purchase of marketable and investment securities
Proceeds from sale of marketable and investment securities(33,323)(368,511)

87,98525,799Proceeds from advanced redemption of debt security

30,375-Acquisition of interests in subsidiaries newly consolidated,
net of cash acquired(4,007)(18,669)

Other, net(1,661)(9,785)(375,655)(919,769)(Decrease) increase in short-term borrowings, net(124,291)

350,131

Decrease in commercial paper, net(25,000)-

Net cash used in investing activities
Cash flows from financing activities:

Proceeds from long-term debt

600,819

153,314

Repayment of long-term debt

(919,696)(299,234)

Proceeds from issuance of bonds

179,159474,607

Redemption of bonds(163,437)(95,074)322

564

Proceeds from issuance of preferred securities by a subsidiary

200,000-

Cash dividends paid

(5,420)(65,843)

Cash dividends paid to minority shareholders
Proceeds from sale and lease back of equipment newly acquired(20,346)(24,745)

338,705

330,145

Repayment of lease obligations(166,290)(206,096)-(200,444)

Other, net(91,192)(51,829)

Net cash (used in) provided by financing activities(196,667)

365,494

165

7,927

168,069

348,111

68

3,781

(734)

(1,822)

847,155

1,014,558¥1,014,558¥1,364,629

Proceeds from issuance of shares to minority shareholders

Payments for repurchase of minority interests and long-term debt

Effect of exchange rate changes
on cash and cash equivalents
Net increase 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 year
Cash and cash equivalents, end of the year32SoftBank Corp. Consolidated Financial Report
For the fiscal year ended March 31, 2013(5) Significant Doubt about Going Concern Assumption
There are no applicable items.

(6) Basis of Presentation of Consolidated Financial Statements
1. Changes in scope of consolidation
As of March 31, 2013, SoftBank Corp. (the “Company”) consolidated 150 subsidiaries (together, the “Group”). 85
subsidiaries were not consolidated as the individual and aggregate amounts were not considered material in relation to theconsolidated total assets, net sales, net income, and retained earnings of the SoftBank consolidated financial statements.
Changes in scope of consolidation are as follows:<Increase>
24 companies
Significant changes:
Starburst Ⅰ, Inc.
Starburst Ⅱ, Inc.
<Decrease>
7 companies
The Company owns 100% shares issued by WILLCOM, Inc. However, WILLCOM, Inc. is in the process of reorganization
under the Corporate Reorganization Act and the Company does not have effective control over WILLCOM, Inc. Therefore,
WILLCOM, Inc. is not treated as a subsidiary.

2. Changes in scope of equity method
As of March 31, 2013, the Company held 3 non-consolidated subsidiaries and 80 affiliates, all of which were accounted forunder the equity method. 82 non-consolidated subsidiaries and 28 affiliates were not accounted for under the equity method,as the individual and aggregate amounts were not considered material in relation to the net income and retained earnings of the
SoftBank consolidated financial statements.
Changes in scope of equity method are as follows:<Increase>
16 companies
Significant changes:
eAccess Ltd.
<Decrease>
7 companies

3. Fiscal year end
Fiscal year ends of consolidated subsidiaries for both domestic and overseas entities are as follows:<Fiscal year end>
<Domestic><Overseas>
March end
(same as the consolidated balance sheet date)52
58
June end
1
July end
11
November end
1
December end
3
21
February end
3-33SoftBank Corp. Consolidated Financial Report
For the fiscal year ended March 31, 2013

4. Summary of significant accounting policies(1) Evaluation standards and methods for major assets[1] Marketable securities and investment securities
Held-to-maturity debt securities: Stated at amortized cost
Available-for-sale securities:
With market quotations:
Stated at fair value, which represents the market prices at the balance sheet date(unrealized gain/loss is included as a separate component in equity, net of tax, while
cost is primarily determined using the moving-average method)
Without market quotations:
Carried at cost, primarily based on the moving-average method
Foreign subsidiaries of the Company applying IFRS (International Financial Reporting Standards) evaluate“available-for-sale securities” by fair value and record unrealized gain (loss) as “Unrealized gain (loss) on
available-for-sale securities.” Embedded derivatives that should be accounted for separately are accounted for according
to the accounting treatment of derivative. 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
Accounting Standards Codification (ASC) Topic 946 and account for the investment securities in accordance with theASC 946. The investment securities are carried at fair value, and net changes in fair value are recorded in the
consolidated statements of income under the application of the ASC 946.
[2] Derivative instruments:

Stated at fair value[3] Inventories (merchandise):

Carried at cost, primarily net selling value determined by the moving-average method(2) Depreciation and amortization[1] Property and equipment:
Buildings and structures:
Telecommunications equipment:
Telecommunications service lines:
Others:Computed primarily using the straight-line method
Computed using the straight-line method
Computed using the straight-line method
Computed primarily using the straight-line method[2] Intangible assets:
Computed using the straight-line method
Finance leases in which the ownership of leased assets is not transferred to lessees at the end of lease periods are computed
using the straight-line method over the period of the finance leases. Finance lease transactions in which the ownership ofleased assets was not transferred to lessees and contracted before April 1, 2008, are accounted for as operating leasetransactions.
(3) Accounting principles for major allowances and accruals<Allowance for doubtful accounts>
To prepare for uncollectible credits, allowance for doubtful accounts is calculated based on the actual bad debt ratio, andspecific allowance for doubtful accounts deemed to be uncollectible is calculated considering its collectability.
<Accrued retirement benefits>
SoftBank Mobile Corp., SoftBank Telecom Corp., and certain other subsidiaries have defined benefit pension plans fortheir employees. These companies account for the obligation for retirement benefits based on the projected benefit
obligations at the end of the fiscal year. SoftBank Mobile Corp. and SoftBank Telecom Corp. amended the pension
plans by suspending the defined benefit pension plans at the end of March 2007 and March 2006, respectively, andimplementing defined contribution pension plans. The retirement benefits existed and calculated under the benefit
pension plan were fixed and will be paid at the retirement of applicable employees, and the projected benefit obligations
are calculated based on these fixed retirement benefits. As a result, there is no service cost under the defined benefit
pension plans at SoftBank Mobile Corp. and SoftBank Telecom Corp.
<Allowance for point mileage >SoftBank Mobile Corp. has an allowance for point mileage which is accrued based on the estimated future obligation
arising from point service, based on past experience.

34

SoftBank Corp. Consolidated Financial Report
For the fiscal year ended March 31, 2013

(4) Translation of foreign currency transactions and accounts
All assets and liabilities in foreign currencies are translated at the foreign currency exchange rates prevailing at the respectivebalance sheet dates. Foreign currency exchange gains or losses are charged to net income when incurred.
The translation of foreign currency-denominated revenues and expenses in the financial statements of foreign consolidated
subsidiaries into Japanese yen is performed by using the average exchange rate for the period. Assets and liabilities aretranslated using the foreign currency exchange rates prevailing at the balance sheet dates, and capital stock is translated using
the historical foreign currency exchange rates. Foreign currency financial statement translation differences are presented asa separate component of “Equity,” and the portion pertaining to minority shareholders is included in “Minority interests.”(5) Accounting for significant hedge transactions[1] Foreign currency forward contract(a) <Hedge accounting>Receivables and obligations denominated in foreign currencies for which foreign currency forward contracts are used tohedge the foreign currency fluctuation are translated at the contracted rate, if the forward contracts qualify for hedge
accounting. For forecasted transactions denominated in foreign currencies, recognitions of gains or losses resulting
from changes in fair value of derivative instruments for hedging are deferred until the related gains and losses on hedged
items are recognized.
(b) <Derivative instruments for hedging and hedged items>
Derivative instruments for hedging:Foreign currency forward contract
Hedged items:
Foreign currency-denominated receivables, obligations, andforecasted transactions(c) <Hedging policy>
In accordance with the Group’s policy, derivative financial instruments are used to hedge foreign exchange risk associatedwith hedged items denominated in foreign currencies.
(d) < Effectiveness of hedge transactions >For receivables and obligations denominated in foreign currencies, effectiveness of the hedge transaction is omitted due toqualifying for hedge accounting. For forecasted transaction denominated in foreign currencies, the effectiveness of hedgetransaction is assessed by measuring high correlation between the variability of cash flows associated with the foreign
currency fluctuation of hedged items and variability of cash flows of hedge instruments.
[2] Interest rate swap(a) <Hedge accounting>
Recognitions of gains or losses resulting from changes in fair value of derivative instruments for hedging are deferred until
the related gains and losses on hedged items are recognized.
(b) <Derivative instruments for hedging and hedged items>
Derivative instruments for hedging:Interest rate swap contracts
Hedged items:
Interest expense on borrowings(c) <Hedging policy>
In accordance with the Group’s policy, derivative financial instruments are used to hedge the risk of exposures tofluctuations in interest rates in accordance with its internal policies, regarding the authorization and credit limit amount.
(d) < Effectiveness of hedge transactions >The effectiveness of hedge transaction is assessed by measuring high correlation between the variability of cash flows
associated with the interest rate of hedged items and variability of cash flows of hedge instruments.
(6) Amortization of goodwill“Goodwill” is amortized on a straight-line basis over reasonably estimated periods in which economic benefits are expected
to be realized. Immaterial goodwill is expensed as incurred. The goodwill resulted from acquisition of Vodafone K.K.
(currently SoftBank Mobile Corp.) is amortized over a 20-year-period.

35

SoftBank Corp. Consolidated Financial Report
For the fiscal year ended March 31, 2013(7) Scope of cash and cash equivalents in the consolidated statements of cash flows“Cash and cash equivalents” are comprised of cash on hand, bank deposits withdrawable on demand, and highly liquid
investments with initial maturities of three months or less and a low risk of fluctuation in value.
(8) Other[1] Accounting method for consumption taxes
Consumption taxes are accounted for using the net method of reporting.
[2] Application of consolidated taxation system
BB Mobile Corp., as a parent company of the consolidated tax return, SoftBank Mobile Corp., and other two companies,
adopted the consolidated taxation system.

(7) Additional information
For the fiscal year ended March 31, 2013
Acquisition of Sprint Nextel Corporation
On October 15, 2012, the Company and Sprint Nextel Corporation (“Sprint”) in the U.S. entered into a series of definitive
agreements under which the Company will invest approximately $20.1 billion (the “transaction”) in Sprint, consisting ofapproximately $12.1 billion to be paid to Sprint shareholders and $8.0 billion of new capital to be used, amongst other purposes,
to strengthen Sprint’s balance sheet.
The transaction, which has been approved by the Boards of Directors of both the Company and Sprint, is subject to approval at a
meeting of the Sprint shareholders (to be held on June 12, 2013 in Kansas, U.S.), customary antitrust, Federal Communications
Commission and other regulatory approvals and the satisfaction or waiver of other closing conditions, including accuracy ofrepresentations and warranties. The Company expects the closing of the transaction to occur on July 1, 2013. As a result of
the transaction the Company will own approximately 70% of the fully-diluted (as used herein, not giving effect toout-of-the-money options) shares of New Sprint (as defined below), which will own 100% of the shares of Sprint.
(1) Purposes of acquisition[1] Enables the Company to establish an operating base as one of the largest mobile Internet companies in the world. The combined
subscriber base will be one of the largest1 between the U.S. and Japan, and the combined mobile telecom service revenue will
rank third2 amongst global operators.
[2] Enables the Company to leverage its deep expertise in smartphones and next-generation mobile networks, and its track recordof success in competing in mature markets with large incumbents, to enhance Sprint’s competitiveness in the U.S.
[3] Provides Sprint $8.0 billion of new capital for its mobile network, strategic investments, and balance sheet as part of its
continued efforts to fortify its operating base towards future growth.
Notes:
1. Based on Wireless Intelligence data, TCA data, and disclosed material by relevant companies. U.S. as of June 2012, and Japan as of
September (eAccess Ltd. data as of August 2012).
2. Based on disclosures by global mobile operators such as China Mobile and Verizon Wireless (January to June 2012).

(2) Outline of acquisition[1] Establishment of subsidiaries
The Company has formed a new U.S. holding company, Starburst I, Inc. (HoldCo), and two further subsidiaries, Starburst II,
Inc. (New Sprint), which is owned directly by HoldCo, and Starburst III, Inc. (Merger Sub), which is owned directly by New
Sprint and indirectly by HoldCo.
Via New Sprint, the Company invested $3.1 billion in Sprint in the form of a newly‐issued convertible bond (Bond) on
October 22, 2012 (EST). The Bond has a 1.0% coupon rate with a seven-year maturity and, if the merger agreement isterminated prior to completion of the merger (as defined in [2] below), subject to regulatory approval, will be convertible, or if
the merger (as defined in [2] below) is completed, will be converted, at $5.25 per share into 16.4% of outstanding Sprintcommon shares on a post-issuance basis (subject to customary adjustments).

36

SoftBank Corp. Consolidated Financial Report
For the fiscal year ended March 31, 2013[2] Merger
Following receipt of Sprint shareholders and regulatory approvals and the satisfaction or waiver of the other closing conditions
to the transaction, the Company will capitalize, through HoldCo, New Sprint with an additional approximately $17.0 billion.
Approximately $12.1 billion will be distributed to Sprint shareholders as merger consideration. Merger Sub will merge withand into Sprint as a result of which:(a) Sprint will become a wholly-owned subsidiary of New Sprint.
(b) In aggregate, Sprint shareholders will receive, in exchange for their Sprint shares approximately 30% of the fully-diluted
equity of New Sprint and approximately $12.1 billion cash.
(c) Individual Sprint shareholders will have the right to elect to receive, for each share of Sprint that they own, either (i) $7.30
in cash or (ii) one share of New Sprint stock, subject to proration if shareholders in the aggregate elect more than the total
amount of cash or stock consideration, as applicable (which would result in the receipt of a mix of cash and stock).
(d) Holders of Sprint stock options will receive stock options in the New Sprint.
(e) The Bond will be converted into shares of Sprint, with the value of such shares reflected (together with the Company’s
additional investment) in the approximately 70% of the fully-diluted equity of New Sprint which HoldCo will hold after
consummation of the merger.
(f) New Sprint will issue a 5 year warrant for approximately 55 million shares of New Sprint with an exercise price of
U$5.25 per share (Warrant) to HoldCo.
(g) New Sprint is expected to succeed Sprint’s New York Stock Exchange listing as a publicly traded company in the US.

Other key terms include:(a) The Company must pay Sprint a termination fee of $600 million if the merger does not close because the Company does
not obtain financing.
(b) Sprint must pay the Company a termination fee of $600 million if the merger does not close because Sprint accepts asuperior offer by a third party.
(c) Sprint must pay up to $75 million of the Company’s expenses if Sprint’s shareholders do not approve the transaction attheir shareholder meeting.

37

SoftBank Corp. Consolidated Financial Report
For the fiscal year ended March 31, 2013[3] Post-transaction (fully-diluted basis)
Post-transaction:(a) The Company will own, through HoldCo, approximately 70% of New Sprint shares and Sprint shareholders will own
approximately 30% of New Sprint shares in aggregate on a fully-diluted basis.
(b) New Sprint will retain $4.9 billion of the $17.0 billion contribution by the Company, which, in combination with the $3.1
billion purchase price for the Bond, represents an $8.0 billion dollar contribution to the New Sprint balance sheet.
(c) Sprint’s current CEO Dan Hesse will be the CEO of New Sprint.
(d) New Sprint will have a 10-member board of directors, including three members from the current Sprint Board of
Directors as well as the CEO.
(e) Sprint’s headquarters will continue to be in Overland Park, Kansas.

(3) New Sprint’s number of shares to be acquired, acquisition price and state of share ownership before and after acquisition[1] Number of shares held before transfer

0 shares(number of voting rights: 0)(voting rights holding ratio: 0.0%)[2] Number of shares to be acquired

3,241,403,146 shares*[3] Acquisition priceTotal amount invested: approximately $20.1 billion
Advisory fees and others: to be determined[4] Number of shares held after transfer

3,241,403,146 shares*(number of voting rights: 3,241,403,146 )(voting rights holding ratio: 70.0%)

Note:* Based on Sprint’s fully-diluted shares (as of October 15, 2012, calculated not giving effect to out-of-the-money options) and giving effect tofull exercise of the warrant.

38

SoftBank Corp. Consolidated Financial Report
For the fiscal year ended March 31, 2013

(4) Financing
In order to raise necessary funds for the transaction, on December 18, 2012, the Company entered into a bridge loan agreement(hereafter “the bridge loan”) for the maximum amount of ¥1.65 trillion with financial institutions. The Company raised thetotal amount of ¥370.0 billion by issuing the 42nd Unsecured Straight Corporate Bond on March 1, 2013 and the 41st Unsecured
Straight Corporate Bond on March 12, 2013. Funds procured by the issuance of those corporate bonds of ¥365.1 billion,
excluding the related approximate issuance cost, are planned to be used as part of the investment of the transaction.
With the issuances of the 41st and the 42nd Unsecured Straight Corporate Bonds, the Company reduced the maximum amountof the bridge loan from ¥1.65 trillion to ¥1 trillion 284.9 billion, decreasing the maximum amount by ¥69.7 billion on March 19,
2013 and by ¥295.4 billion on March 27, 2013 respectively. The loan procured by the bridge loan is planned to be refinancedby medium and long term loans.
The Company also raised $2,485 million and €625 million by issuing USD-denominated Senior Notes due year 2020 andEuro-denominated Senior Notes due year 2020 respectively on April 23, 2013. The funds are planned to be used forrefinancing the Company’s loans and operating capital, as well as for part of the investment for the transaction.

The summaries of the bridge loan, the 41st and the 42nd Unsecured Straight Corporate Bonds, USD-denominated Senior Notes
due year 2020 and Euro-denominated Senior Notes due year 2020 are as follows:
Summary of the bridge loan
[1] Borrower

The Company[2] Mandated
lead arrangers(MLAs)

Mizuho Corporate Bank, Ltd.
Sumitomo Mitsui Banking Corporation
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
Deutsche Bank AG, Tokyo Branch[3] Date ofcontract

December 18, 2012 (last date of amendment March 27, 2013)[4] Maximum total
amount ofborrowing¥1 trillion 284.9 billion (after the reduction of maximum total amount of borrowing)(Breakdown)
Facility A: ¥250 billion (cash already borrowed)
Facility B: ¥1 trillion 34.9 billion (after the reduction of maximum total amount of borrowing)[5] Loandrawdown date
[6] Use of loan
proceeds[7] Maturity[8] Collateral[9] Guarantors

Facility A:December 21, 2012
Facility B: At the time of the Sprint acquisition
Facility A: Investment in Sprint in the form of newly-issued convertible bonds (restore balanceof cash on hand used for the investment in Sprint in the form of newly-issued convertible
bonds in October 2012)
Facility B: Investment in and resulting acquisition of Sprint
December 17, 2013(a) Shares of StarburstⅠ, Inc. held by the Company(b) Shares of StarburstⅡ, Inc. and all other assets held by StarburstⅠ, Inc.
(c) Sprint convertible bonds and all other assets held by StarburstⅡ, Inc.*(a) Pre-transaction: StarburstⅠ, Inc. and StarburstⅡ, Inc.
(b) Post-transaction: StarburstⅠ, Inc., SoftBank Mobile Corp., SoftBank BB Corp. and
SoftBank Telecom Corp.

Note:* Until immediately prior to, but subject to the occurrence of, the Company’s acquisition of Sprint.

39

SoftBank Corp. Consolidated Financial Report
For the fiscal year ended March 31, 2013

Summary of the 41st and the 42nd Unsecured Straight Corporate Bonds[1] Total amount of issue

The 41st Unsecured Straight Corporate
Bonds¥300.0 billion[2] Payment amount[3] Coupon rate
[4] Redemption[5] Maturity date

The 42nd Unsecured Straight Corporate
Bonds¥70.0 billion¥100 per ¥100 in each corporate bond
1.47% per annum
1.467% per annum
The bonds will be redeemed in full upon maturity. The bonds may also be
repurchased and redeemed at any time commencing from the first day following theclosing date, subject to requirements of the book-entry transfer institution.
March 10, 2017
March 1, 2017[6] Issue date

March 12, 2013

March 1, 2013

[7] CollateralNone[8] Guarantors

None[9] Use of proceeds

Planned to use for part of the investment for the acquisition of Sprint.

Summary of USD-denominated Senior Notes due year 2020 and Euro-denominated Senior Notes due year 2020
USD-denominated Senior Notes
due year 2020
$2,485 million (¥244.1 billion)[1] Total amount of issue[2] Issue priceEuro-denominated Senior Notes
due year 2020
€625 million (¥80.2 billion)

100% of the par value[3] Interest rate

4.500% per annum

4.625% per annum[4] Redemption

Lump-sum redemption at maturity[5] Maturity date

April 15, 2020

[6] Issue date

April 23, 2013

[7] CollateralNone[8] Guarantors

SoftBank Mobile Corp., SoftBank Telecom Corp.

[9] Use of proceeds

Planned to use for the investment for the acquisition of Sprint, refinancing loan oroperating capital.

Note:
With regards to above USD-denominated Senior Notes and Euro-denominated Senior Notes, the Company has entered into currency swap
contracts with financial institutions and the amount of principal by redemption and interest payments in JPY is fixed. The amount ofredemption after the currency swap contracts are ¥244.1 billion for USD-denominated Senior Notes due year 2020 and ¥80.2 billion forEuro-denominated Senior Notes due year 2020.

(5) Foreign currency forward contracts
Following receipt of Sprint shareholders and regulatory approvals and the satisfaction or waiver of the other closing conditions
to the transaction, in addition to a $3.1 billion convertible bond subscribed on October 22, 2012, the Company will capitalize,
through HoldCo, New Sprint with an additional approximately $17.0 billion. The Company entered into foreign currency
forward contracts to hedge the foreign exchange risk related to the additional investment and hedge accounting is applied to thecontracts. Please refer to page 54 “Derivative Transaction” for details.
(6) Outline of Sprint[1] Name

Sprint Nextel Corporation[2] Address

6200 Sprint Parkway, Overland Park, Kansas[3] Name and title of representative

Daniel R. Hesse, Chief Executive Officer and President[4] Business description

Telecommunications[5] Common shares$6,019 million（as of December 31, 2012）[6] Date of foundation

November 15, 193840

SoftBank Corp. Consolidated Financial Report
For the fiscal year ended March 31, 2013(8) Notes(Consolidated Balance Sheets)
1. Accumulated depreciation of property and equipment
As of March 31, 2012
1,205,104

million yen

As of March 31, 2013
1,304,478

million yen

2. Investments in non-consolidated subsidiaries and affiliates
As of March 31, 2012
Investment securities and investments in partnerships

209,484

million yen

As of March 31, 2013
468,186

million yen

3. Secured loans(1) Assets pledged as collateral for secured liabilities[1] For short-term borrowings and long-term debt
Assets pledged as collateral and secured liabilities by consolidated subsidiaries are as follows:

As of March 31, 2012

As of March 31, 2013

Assets pledged as collateral:
Cash and deposits

99

2,656

Accounts receivable - other

-

1,579

Buildings and structures-

229

Investment securities-

291,871

Total

99

million yen

As of March 31, 2012

296,336

million yen

As of March 31, 2013

Secured liabilities:
Accounts payable - trade935-

Short-term borrowings*

27

250,030

Long- term debt

64

95

Total

1,027

million yen

250,125

million yen

Note:*With regard to ¥250,000 million of the short-term bridge loan for the acquisition of Sprint, shares of Starburst I, Inc. owned by
the Company and the shares of Starburst II, Inc. owned by Starburst I, Inc. are pledged as collateral in addition to the above
assets. Starburst I, Inc. and Starburst II, Inc. are both consolidated subsidiaries.

(2) Borrowings by security lending agreements
Cash receipts as collateral from financial institutions, to whom the Company lent a portion of shares in its subsidiary under
security lending agreements are presented as follows:
As of March 31, 2012
Short-term borrowings

93,00041

million yen

As of March 31, 2013
93,000

million yen

SoftBank Corp. Consolidated Financial Report
For the fiscal year ended March 31, 2013

(3) Others
A consolidated subsidiary purchased assets by installments, and the assets of which ownership was not transferred to theconsolidated subsidiary and its installment payables are as follows:
As of March 31, 2012

As of March 31, 2013

Assets of which ownership is not transferred:59

72

54,927

96,200

210

277

6

5

17,006

34,601Other intangibles

36

38

Investments and other assets - Other assets
Total

246

234

Buildings and structures
Telecommunications equipment
Construction in progress
Other property and equipment
Software72,494

million yen

As of March 31, 2012

131,430

million yen

As of March 31, 2013

Installment payables:
Accounts payable - other and accrued expenses

16,20831,958Long-term liabilities - Other liabilities
Total

58,037

104,828

74,245

million yen

136,787

million yen

4. Guarantee obligation
The Company has entered into a sponsor agreement with WILLCOM, Inc. Under the sponsor agreement, the Company
provides necessary financial support to WILLCOM, Inc. for business operation and execution of the rehabilitation plan. The
agreement is effective until WILLCOM, Inc. completes the payment of its reorganization claims and reorganization security
interests (total amount ¥41,000 million) amounting to ¥ 34,151 million as of March 31, 2012, and ¥ 27,373 million as of March
31, 2013, respectively.

5. Line of credit as a creditor (not used)
As of March 31, 2012
14,785

million yen

As of March 31, 2013
32,289million yen

6. Financial covenants
As of March 31, 2013
The Group's interest-bearing debt includes financial covenants, with which the Group is in compliance. The major financial
covenants are as follows. If the Group fails to comply with the following covenants, creditors may require repayment of all
debt. (Where the covenants set several conditions, the strictest condition is presented below.)
As of March 31, 2013, there is no infringement of the debt covenants.
(1) The amount of the Company's net assets at the end of the year and the first half of the year must not fall below 75% of theCompany's net assets at the end of the previous year.
(2) The consolidated balance sheets of the Company and BB Mobile Corp. at the end of the year and the first half of the year
must not show a net capital deficiency. The balance sheets of SoftBank Mobile Corp., SoftBank BB Corp. and SoftBank
Telecom Corp. at the end of the year and the first half of the year, must not show a net capital deficiency.

42

SoftBank Corp. Consolidated Financial Report
For the fiscal year ended March 31, 2013

(Consolidated Statements of Income)
1. Selling, general and administrative expenses

2.

Sales commission and sales promotion expense

Fiscal year ended
March 31, 2012
541,807 million yen

Fiscal year ended
March 31, 2013
529,918 million yen

Payroll and bonuses

124,024

137,847

Financing related expenses
For the fiscal year ended March 31, 2013
It is primarily associated with a bridge loan agreement for a maximum amount of ¥1.65 trillion, which was entered into on
December 18, 2012, in order to raise the necessary funds for the acquisition of Sprint. The Company reduced the maximum
amount of the bridge loan to ¥1 trillion 284.9 billion, decreasing the maximum amount by ¥365.1 billion.

3. Refinancing related expense
For the fiscal year ended March 31, 2012
It is primarily ¥23,957 million of procurement expense related to the total amount of ¥550.0 billion financing based on the
resolution of the directors’ meeting held on July 21, 2011 and cancellation expense of interest-rate swap to hedge interest raterisks along with the repayment of SBM loan*.
Note:*¥1,366.0 billion loan to SoftBank Mobile Corp. procured in November 2006 by Mizuho Trust & Banking Co., Ltd., the“Tokutei Kingai Trust Trustee” under the whole business securitization scheme. The SBM loan was associated with the seriesof financing transactions for the Company to acquire Vodafone K.K. (currently SoftBank Mobile Corp.). This loan was paid
off on October 27, 2011.

4. Gain on sale of investment securities
For the fiscal year ended March 31, 2012
The gain on sale of investment securities for the current period is primarily attributable to a ¥76,430 million gain on sale ofYahoo! Inc. shares. In connection with the Company’s financing of approximately $1,135 million from CITIBANK, N.A.
through its U.S. subsidiary in February 2004, certain forward contracts (“collar transaction”) were entered into, which allowed
the obligation to be settled at maturity by delivering Yahoo! Inc. shares held by the Company’s subsidiary. The forward
contracts were to effectively hedge the variability of cash flows associated with the future market price of the underlying
securities.
During the fiscal year ended March 31, 2012, the obligation under the forward contracts was settled at maturity by effectively
delivering the shares of Yahoo! Inc. (book basis of $142 million) to CITIBANK, N.A. The cash proceeds received by theCompany’s subsidiary from delivering the shares of Yahoo! Inc. to CITIBANK, N.A. were then remitted to repay the related
obligation. “Gain on sale of investment securities” of ¥76,430 million ($993 million) was recorded as a result of settling theforward contracts.

43

SoftBank Corp. Consolidated Financial Report
For the fiscal year ended March 31, 2013

5. Unrealized appreciation (loss) on valuation of investments and loss on sale of investments at subsidiaries in the UnitedStates of America, net
Certain subsidiaries of the Company in the United States of America qualify as investment companies under the provisions set
forth in the ASC 946 and account for investment securities in accordance with ASC 946.
The net changes in the fair value of the investments are recorded as unrealized appreciation (loss) on valuation of investments
and loss on sale of investments at subsidiaries in the U.S., net and loss on sale of investments, computed based on theacquisition cost, is also included in this account. The unrealized appreciation (loss) on valuation of investments and loss onsale of investments included in unrealized appreciation (loss) on valuation of investments and loss on sale of investments at
subsidiaries in the U.S., net in the consolidated statements of income are as follows:
Fiscal year ended
March 31, 2012
Unrealized appreciation (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

6.

Fiscal year ended
March 31, 2013

3,584

(167)

(1,598)(1,356)

1,985 million yen(1,524)

million yen

Premium expense on advanced repayment of long-term debt
For the fiscal year ended March 31, 2012
As a result of the refinancing of SBM loan, a premium expense occurred for the advanced repayment of the entire loan on
October 27, 2011.

44

SoftBank Corp. Consolidated Financial Report
For the fiscal year ended March 31, 2013

(Consolidated Statements of Changes in Equity)
Fiscal year from April 1, 2011 to March 31, 2012
1. Class and number of outstanding shares(shares in thousands)
March 31, 2011
Number of common stocks
1,082,530
Note:Increase resulted from the exercise of stock acquisition rights.

Increase

Decrease

March 31, 201225,198-

1,107,728

2. Class and number of treasury stocks(shares in thousands)
March 31, 2011

Increase

Decrease

March 31, 2012

Number of common stocks
180
9,033
9,213
Note:
Increase resulted from the acquisition of 9,028 thousand shares based on Companies Act Article 156 with Companies Act 165 (3) and theacquisition of the fractional shares (4 thousand shares).

3. Stock acquisition rights(1) Stock acquisition rights as stock options
Detail ofstock acquisition rights

Type

The Company
Consolidated
subsidiaries

Class of shares-

Number of shares for stock acquisition rights(in thousands)
March 31,
March 31,
Increase
Decrease
2012
2011
-

Total

Millions ofyenMarch 31,
2012
98

-

782

-

880

(2) Stock acquisition rights other than aboveType

Detail ofstock acquisition rights

Consolidated
subsidiaries-

Class of shares

Number of shares for stock acquisition rights(in thousands)
March 31,
March 31,
Increase
Decrease
2012
2011

Total

Millions ofyenMarch 31,
2012

-

18

-

18

4. Dividends(1) Dividend paid
Resolution
Ordinary general meeting ofshareholders, June 24, 2011

Class of shares

Amount of dividend

Dividend(Millions of yen)

per share

Common stocks

5,411

¥5.00

Record date

Effective date

March 31, 2011

June 27, 2011

(2) Dividends of which record date is in the fiscal year ended March 31, 2012 and effective date for payment is in the fiscal
year ended March 31, 2013
Resolution

Class ofAmount of dividend

Source ofDividend

shares(Millions of yen)

dividend

per share

Ordinary general meeting ofCommonshareholders, June 22, 2012

stocks43,94045

Retainedearnings¥40.00Record date

Effective date

March 31, 2012

June 25, 2012

SoftBank Corp. Consolidated Financial Report
For the fiscal year ended March 31, 2013

Fiscal year from April 1, 2012 to March 31, 2013
1. Class and number of outstanding shares(shares in thousands)
March 31, 2012

Increase

Decrease

March 31, 2013

1,107,728

92,931-

1,200,660

Number of common stocks

Note:
Increase resulted from the issuance of 69,871 thousand shares from the share exchange with eAccess Ltd. conducted on January 1, 2013
and the issuance of 23,060 thousand shares from the exercise of stock acquisition rights.

2. Class and number of treasury stocks(shares in thousands)
March 31, 2012

Increase

Decrease

March 31, 2013

9,213

26

(80)

9,160

Number of common stocks

Note:
Increase resulted from the acquisition of the fractional shares. Decrease resulted from the allocation of treasury stocks for the exercise ofstock option rights.

3. Stock acquisition rights(1) Stock acquisition rights as stock options
Detail ofstock acquisition rights

Type

The Company
Consolidated
subsidiaries

Class of shares-

Number of shares for stock acquisition rights(in thousands)
March 31,
March 31,
Increase
Decrease
2013
2012
-

Total

Millions ofyenMarch 31,
2013
95

-

622

-

717

(2) Stock acquisition rights other than aboveType

Detail ofstock acquisition rights

Consolidated
subsidiaries-

Class of shares

Number of shares for stock acquisition rights(in thousands)
March 31,
March 31,
Increase
Decrease
2013
2012

Total

Millions ofyenMarch 31,
2013

-

18

-

18

4. Dividends(1) Dividend paid
Resolution
Ordinary general meeting ofshareholders, June 22, 2012
Directors’ meeting, November 15,
2012

Class of shares

Amount of dividend

Dividend(Millions of yen)

per share

Common stocks

43,940¥40.00Common stocks

22,104¥20.0046

Record date

Effective date

March 31, 2012

June 25, 2012

September 30,

December 14,

2012

2012

SoftBank Corp. Consolidated Financial Report
For the fiscal year ended March 31, 2013

(2) Dividends of which record date is in the fiscal year ended March 31, 2013 and effective date for payment is in the fiscal
year ending March 31, 2014
Resolution

Class ofAmount of dividend

Source ofDividend

shares(Millions of yen)

dividend

per share

Ordinary general meeting ofCommonshareholders, June 21, 2013

stocks23,829Retained¥20.0

earnings

Record date

Effective date

March 31, 2013

June 24, 2013

5. Changes in foreign affiliate’s interests in its subsidiary
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.

(Consolidated Statements of Cash Flows)
1. Reconciliation of cash and cash equivalents to the amounts presented in the accompanying consolidated balance sheets

Cash and deposits

As of March 31, 2012

As of March 31, 2013

1,016,251

1,369,134 million yen

million yen

Marketable securities

4,575

4,703

Time deposits with original maturity over three months(2,473)(4,835)

Stocks and bonds with original maturity over three months(3,794)(4,373)

Cash and cash equivalents

1,014,558

million yen

1,364,629 million yen

2. 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.
3. Proceeds from sale of marketable and investment securities and Repayment of long-term debt
For the fiscal year ended March 31, 2012
As described in “4. Gain on sale of investment securities under (Consolidated Statements of Income),” the shares of Yahoo! Inc.
held by the Company's U.S. subsidiary were delivered to CITIBANK, N.A. in connection with the settlement of the obligation
under the forward contracts (“collar transaction”). The cash receipts of ¥57,191 million ($743 million) equaled the fair value of theshares delivered and were recorded as “Proceeds from sale of marketable and investment securities.” The proceeds received of¥57,191 million were then remitted to repay the obligation and recorded as “Repayment of long-term debt.”
The difference between the obligation balance of $1,135 million at maturity and the $743 million of proceeds from delivering theshares of Yahoo! Inc. that were remitted to CITIBANK, N.A. in full settlement of the obligation was recognized as a realized gainon the forward contracts. Therefore, the balance of the obligation after deduction of the realized gain on the forward contracts,
which was equal to the fair value of Yahoo! Inc. shares, was recorded under “Repayment of long-term debt.”

47

SoftBank Corp. Consolidated Financial Report
For the fiscal year ended March 31, 2013

4. Proceeds from advanced redemption of debt security
For the fiscal year ended March 31, 2012
In January 2010, the Company acquired corporate bonds issued by J-WBS Funding K.K. to provide part of the funding for the
SBM loan under the whole business securitization scheme associated with the acquisition of Vodafone K.K. (currently SoftBank
Mobile Corp.) and recorded the corporate bonds as “Investment securities” on the consolidated balance sheet. These are proceedsfrom the advanced redemption of the corporate bonds, accompanying the repayment of the entire SBM loan in October 2011.
5. Proceeds from issuance of preferred securities by a subsidiary
For the fiscal year ended March 31, 2012
They are proceeds from the issuance of preferred securities with limited voting right (preferred securities which have the nature ofa stock prescribed in Financial Instruments and Exchange Act Article 2 (1) (ix), which is a part of securities described in Financial
Instruments and Exchange Act Article 2 (1) (xvii)) to investors through publicly offering in Japan by the Company’s consolidated
subsidiary, SFJ Capital Limited.
6. Proceeds from sale and lease back of equipment newly acquired
Once the Group purchases telecommunications equipment for the purpose of assembly, installation and inspection, the Groupsells the equipment to lease companies for sale and lease back purposes. 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” and the cash inflows from the sale of the equipment to lease companies are included in “Proceeds from sale andlease back of equipment newly acquired.”
7. Payments for repurchase of minority interests and long-term debt
For the fiscal year ended March 31, 2011
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 Group’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.
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 with therelated expenses associated with the acquisition (¥63 million in December 2010 and ¥444 million in April 2012) in December
2010 and in April 2012, respectively.
8. Non-cash investing and financing transaction
For the fiscal year ended
March 31, 2012

For the fiscal year ended
March 31, 2013

Increase of additional paid-in capital due to the issuance of new shares on
the share exchange＊
Assets and obligation for finance lease transactions

23,074

124,056

Increase of common stock by the exercise of stock acquisition rights

25,022

24,974

Increase of additional paid-in capital by the exercise of stock acquisition rights

24,97924,93950,002

49,914

11,71775,000-Decrease of convertible bond with stock acquisition rights by the exercise ofstock acquisition rights
Acquisitions of fixed assets by installments
Note:* Due to the share exchange with eAccess Ltd. conducted on January 1, 2013.

48

million yen

219,395 million yen

SoftBank Corp. Consolidated Financial Report
For the fiscal year ended March 31, 2013

(Financial Instruments)
1. Conditions of financial instruments(1) Management policy
The Group utilizes diversified financing methods of raising funds through both indirect financing, such as bank loans and leases,
and direct financing, such as issuance of bonds and commercial paper and borrowings through securitization, taking market
conditions and current/non-current debts ratio into consideration. The Group makes short-term deposits for fund management
purposes. The Group also utilizes derivative financial instruments to hedge various risks as described in detail below and does
not enter into derivatives for trading or speculative purposes.
(2) Financial instruments, risks, and risk management
The notes and accounts receivable-trade are exposed to credit risk of customers. To minimize the credit risk, the Group
performs due date controls and balance controls for each customer in accordance with internal customer credit management
rules, and regularly screens major customers’ credit status. For credit risk associated with installment sales receivables ofmobile handsets, SoftBank Mobile Corp. screens customers’ credit in accordance with internal screening standards for new
subscriber contracts as well as refers to an external institution for customers' credit status.
Maturities of accounts payable-trade and accounts payable-other are mostly within one year. Loan payables with variableinterest rate are exposed to interest rate risk and interest rate swaps are used for certain loan payables in order to hedge this risk.
Interest rate swap transactions and foreign currency forward contracts are used with regards to derivative transactions. Interest
rate swap transactions are used to hedge interest rate risks associated with financial liabilities. Foreign currency forward
contracts are used to hedge foreign exchange risk associated with assets, liabilities and scheduled transactions denominated inforeign currencies. The scheduled transaction is mainly the investment denominated in foreign currencies associated with theacquisition of Sprint.
Hedge accounting is applied for certain derivative transactions. Hedging instruments and hedged items, hedging policy, andeffectiveness of hedge transactions are described in “Basis of Presentation of Consolidated Financial Statements 4. Summary ofsignificant accounting policies (5) Accounting for significant hedge transactions.” Derivative transactions entered into by theCompany are implemented and controlled based on the Company’s internal polices and are limited to the extent of actual
demand. Balance and fair value of derivative transactions are reported regularly to the board of directors. Consolidated
subsidiaries also manage the derivative transactions based on the Company’s policies.
(3) Supplemental explanation regarding fair value of financial instruments
Fair values of financial instruments are measured based on the quoted market price, if available, or reasonably assessed value if
a quoted market price is not available. Fair value of financial instruments which quoted market price is not available iscalculated based on certain assumptions, and the fair value might differ if different assumptions are used. In addition, thecontract amount of the derivative transactions described below in “(Derivative Transactions)” does not represent the market riskof the derivative transactions.

49

SoftBank Corp. Consolidated Financial Report
For the fiscal year ended March 31, 2013

2. Fair value of financial instruments
The carrying amounts on the consolidated balance sheets, fair value, and differences are as follows. In addition, financial
instruments, of which it is extremely difficult to measure the fair value, are not included. (Please see “Notes 2. Financial
instruments of which the fair value is extremely difficult to measure.”)As of March 31, 2012
(Millions of yen)

As of March 31, 2012
Carrying amount

Fair value

Differences

Assets(1) Cash and deposit¥1,016,251¥1,016,251¥-(2) Notes and accounts receivable-trade661,287

Allowance for doubtful accounts1(36,882)

Notes and accounts receivable-trade, net

624,405

624,405-(3) Marketable securities and investment securities[1]Held-to-maturity debt securities

691

580

(110)

[2]Investments in unconsolidated subsidiaries
and affiliated companies

60,59982,041

21,442[3]Available-for-sale securities

83,123

83,123-

Total

1,785,071

1,806,402

21,331(1) Accounts payable-trade190,532

190,532-(2) Short-term borrowings

403,167

403,167-(3) Current portion of corporate bonds

144,988

144,988-(4) Accounts payable-other and accrued expenses

835,053

835,053-(5) Income taxes payable

125,116

125,116-(6) Current portion of lease obligations

152,682

152,682-(7) Corporate bonds

459,900

466,836

6,936(8) Long-term debt

560,070

568,472

8,402(9) Lease obligations

347,699

351,8314,132

3,219,210

3,238,681

19,470[1]Hedge accounting is not applied

1,683

1,683

-

[2]Hedge accounting is applied

(993)

(993)

-

Total

¥689

¥689

¥-

Liabilities

Total
Derivative transactions

2

Notes:
1. Allowance for doubtful accounts associated with notes and accounts receivable-trade are deducted.
2. Derivative assets and liabilities are disclosed on a net basis. Net liabilities are disclosed in brackets.

50

SoftBank Corp. Consolidated Financial Report
For the fiscal year ended March 31, 2013

As of March 31, 2013
(Millions of yen)

As of March 31, 2013
Carrying amount

Fair value

Differences

Assets(1) Cash and deposit¥1,369,134¥1,369,134¥-(2) Notes and accounts receivable-trade662,186

1

Allowance for doubtful accounts(28,330)

Notes and accounts receivable-trade, net

633,856

633,856-(3) Marketable securities and investment securities[1]Held-to-maturity debt securities

400

400

-

[2]Investments in unconsolidated subsidiaries
and affiliated companies

97,945245,480

147,535[3]Available-for-sale securities

360,984

360,984-

Total

2,462,322

2,609,857

147,535(1) Accounts payable-trade194,653

194,653-(2) Short-term borrowings

813,490

813,490-(3) Current portion of corporate bonds

205,000

205,000-(4) Accounts payable-other and accrued expenses

751,690751,690-(5) Income taxes payable

179,558

179,558-(6) Current portion of lease obligations

192,603

192,603-(7) Corporate bonds

734,900

733,164(1,736)(8) Long-term debt

354,290353,334(955)(9) Lease obligations

526,738

527,620881

3,952,926

3,951,116(1,809)Liabilities

Total
Derivative transactions

2[1]Hedge accounting is not applied

5,900

5,900

-

[2]Hedge accounting is applied

188,838

188,838-

Total¥194,739¥194,739¥-

Notes:
1. Allowance for doubtful accounts associated with notes and accounts receivable-trade are deducted.
2. Derivative assets and liabilities are disclosed on a net basis. Net liabilities are disclosed in brackets.

Notes 1. Fair value measurement of financial instruments
Assets(1) Cash and deposits
The carrying amount approximates fair value because of the short maturity of these instruments.
(2) Notes and accounts receivable-trade
The carrying amount of installment sales receivables approximates fair value, which is based on the present value of future
cash flows through maturity discounted using an estimated credit-risk-adjusted interest rate. The carrying amount of notes
and accounts receivable-trade other than installment sales receivables approximates fair value because of the short maturityof these instruments.

51

SoftBank Corp. Consolidated Financial Report
For the fiscal year ended March 31, 2013(3) Marketable and investment securities
The fair value of equity securities equals quoted market price, if available. The fair value of debt securities equals quoted
market price or provided price by financial institutions. The investment securities held by foreign subsidiaries applying
IFRS (International Financial Reporting Standards) and subsidiaries in the United States of America applying ASC 946 areevaluated at fair value.

Liabilities(1) Accounts payable-trade, (4) Accounts payable-other and accrued expenses, and (5) Income taxes payable
The carrying amount approximates fair value because of the short maturity of these instruments.
(2) Short-term borrowings
The carrying amount of the current portion of long-term debt approximates fair value since the carrying amount was
equivalent to the present value of future cash flows discounted using the current borrowing rate for similar debt of acomparable maturity. Borrowings other than the current portion of long-term debt, the carrying amount approximates fairvalue because of the short maturity of these instruments.
(3) Current portion of corporate bonds
The carrying amount approximates fair value because the carrying amount was equivalent to the quoted market price.
(6) Current portion of lease obligations
The carrying amount approximates fair value since the carrying amount was equivalent to the present value of future cash
flows discounted using the current interest rate for similar lease contracts of comparable maturities and contract conditions.
(7) Corporate bonds
Fair value equals the quoted market price.
(8) Long-term debt
Fair value of long-term debts is based on the present value of future cash flows discounted using the current borrowing rate
for similar debt of a comparable maturity.
(9) Lease obligations
Fair value equals to the present value of future cash flows discounted using the current interest rate for similar lease contractsof comparable maturities and contract conditions.

Derivative Transactions
Contract amount, fair value, unrealized gain or loss, and others are described in “(Derivative Transactions).”
Notes 2. Financial instruments of which the fair value is extremely difficult to measure(Millions of yen)

Carrying Amounts
Classification

As of March 31, 2012

Unlisted investment securities of unconsolidated subsidiaries
and affiliated companies

As of March 31, 2013

¥148,884¥370,240

Unlisted equity securities

42,80537,717

Investments in partnerships

6,666

8,023

¥198,357¥415,981

Total

Above are not included in “Assets (3) Marketable securities and investment securities” because there is no market value and it
is extremely difficult to measure the fair value.

52

SoftBank Corp. Consolidated Financial Report
For the fiscal year ended March 31, 2013

Notes 3. The redemption schedule for money claim and held-to-maturity debt securities with maturity date subsequent tothe consolidated balance sheets date.
As of March 31, 2012
(Millions of yen)Classification
Cash and deposits
Notes and accounts receivable-trade

April 1, 2012 toApril 1, 2013 toApril 1, 2017 toApril 1, 2022

March 31, 2013

March 31, 2017

March 31, 2022

and thereafter¥1,016,251

¥-

¥-

¥-

587,958

73,328

-

-

200

-

-

600

630

200

400

101

-

-

1,230

301

200

600

¥1,605,440¥73,630

¥200

¥600

Marketable and investment securities
Held-to-maturity debt securities(corporate bonds)
Available-for-sale securities withmaturity date (corporate bonds)
Available-for-sale securities withmaturity date (other)
Sub-total
Total

200

-

As of March 31, 2013
(Millions of yen)Classification
Cash and deposits
Notes and accounts receivable-trade

April 1, 2013 toApril 1, 2014 toApril 1, 2018 toApril 1, 2023

March 31, 2014

March 31, 2018

March 31, 2023

and thereafter¥1,369,134

¥-

¥-

¥-

601,129

61,057

-

-

400

-

-

-

500

5,432

291,955

-

630

-

-

-

Marketable and investment securities
Held-to-maturity debt securities(corporate bonds)
Available-for-sale securities withmaturity date (corporate bonds)
Available-for-sale securities withmaturity date (other)
Sub-total
Total

1,530

5,432

291,955-¥1,971,794¥66,489¥291,955¥-

Notes 4. The redemption schedule for corporate bonds, long-term debt, and lease obligations subsequent to the consolidatedbalance sheets date.
As of March 31, 2012
(Millions of yen)

April 1, 2012 toApril 1, 2013 toApril 1, 2014 toApril 1, 2015 toMarch 31, 2013

March 31, 2014

March 31, 2015

March 31, 2016

Corporate bonds¥144,988¥205,000¥74,900¥70,000

Long-term debt

299,209359,290

200,310

72

Lease obligations

152,682

120,372

101,289

80,644¥596,880¥684,663¥376,500¥150,716Classification

Total

April 1, 2016 toApril 1, 2017 toApril 1, 2022

March 31, 2017

March 31, 2022

and thereafter

Corporate bonds¥100,000¥10,000¥-

Long-term debt

388

7

-

Lease obligations

45,3893-¥145,778¥10,011¥-Classification

Total

53

SoftBank Corp. Consolidated Financial Report
For the fiscal year ended March 31, 2013

As of March 31, 2013
(Millions of yen)

April 1, 2013 toApril 1, 2014 toApril 1, 2015 toApril 1, 2016 to

March 31, 2014

March 31, 2015

March 31, 2016

March 31, 2017

¥205,000¥74,900¥70,000¥470,000

Long-term debt

359,322

267,125

64,27822,886

Lease obligations

192,603170,204

213,582

105,438¥756,926¥512,230¥347,861¥598,324

April 1, 2017 toApril 1, 2018 toApril 1, 2023

March 31, 2018

March 31, 2023

and thereafter

Corporate bonds¥120,000¥-¥-

Long-term debt

-

-

-

Lease obligations

37,5120-¥157,512¥0¥-Classification
Corporate bonds

Total

Classification

Total(Derivative Transactions)(1) Derivative transactions to which the Company did not apply hedge accounting
1. Currency related
As of March 31, 2012
(Millions of yen)March 31, 2012
Nature of transaction

Contract amounts
Over 1 year

Fair

Unrealizedvalue

gain(loss)

Foreign currency forward contracts to:
Off-market– Purchase U.S. dollars and sell Japanese yen¥53,099¥-¥1,683¥1,683transactions– Purchase U.S. dollars and sell Korean won

480

-

(0)

(0)

– Purchase Euro and sell Japanese yen

18

-

(0)

(0)

¥53,599¥-¥1,683¥1,683

Total

Note:
Fair value is based on information provided by financial institutions at the end of the fiscal year.
As of March 31, 2013
(Millions of yen)March 31, 2013
Nature of transaction

Contract amounts
Over 1 year

Fair

Unrealizedvalue

gain(loss)

Foreign currency forward contracts to:
Off-market
transactions– Purchase U.S. dollars and sell Japanese yen– Purchase Euro and sell Japanese yen
Total¥51,963¥-¥5,900¥5,900

10

-

(0)

(0)

¥51,973¥-¥5,900¥5,900Note:
Fair value is based on information provided by financial institutions at the end of the fiscal year.

54SoftBank Corp. Consolidated Financial Report
For the fiscal year ended March 31, 2013

2. Interest related
There are no applicable items.

3. Securities related
There are no applicable items.

(2) Derivative transactions to which the Company applied hedge accounting
1. Currency related
As of March 31, 2012
(Millions of yen)

Hedge accounting
methodDeferral hedge
accounting

Contract amount

Nature of transaction

Hedged items

Foreign currency forward
contracts:
to buy:U.S. dollars

Accounts payable - other

¥148

¥-

¥-

Accounts payable - trade

1,020

-

-

Accounts receivable - trade

86

-

-

¥1,254¥-Euro
Foreign currency forward
contracts:
to sell:
U.S. dollars
Total

Fair valueOver 1 year

¥-

Note:
For certain accounts payable-other, accounts payable-trade, and accounts receivable-trade denominated in foreign currencies for which
foreign currency forward contracts are used to hedge the foreign currency fluctuations, fair value of the derivative financial instrument isincluded in fair value of the accounts payable-other, accounts payable-trade, and accounts receivable - trade as hedged items.

As of March 31, 2013
(Millions of yen)

Hedge accounting
methodNature of transaction

Hedged items

Contract amount

Fair valueOver 1 year

Foreign currency forward
contracts :to buy:Scheduled transactions forinvestment denominated inforeign currencies1
Scheduled transactions for
expenses denominated inforeign currencies

U.S. dollars
Deferral hedge
accounting¥1,411,990¥-¥189,357

239

-

(6)

Scheduled transactions forsales denominated in foreign
currencies

108

-

3

U.S. dollars

Accounts payable - other3

175

-

-

Euro

Accounts payable - trade3

1,154

-

-

Accounts receivable - trade3

88

-

-

¥1,413,756¥-¥189,353

U.S. dollars
Foreign currency forward
contracts:
to sell:
U.S. dollars
Foreign currency forward
contracts:
to buy:Alternative method

Foreign currency forward
contracts:
to sell:
U.S. dollars
Total

55

SoftBank Corp. Consolidated Financial Report
For the fiscal year ended March 31, 2013

Notes:
1. Foreign currency forward contract is for a scheduled additional investment of $17.0 billion in New Sprint through HoldCo in the U.S.
regarding the acquisition of Sprint.
2. Fair value is based on information provided by financial institutions.
3. For certain accounts payable - other, accounts payable - trade, and accounts receivable - trade denominated in foreign currencies for which
foreign currency forward contracts are used to hedge the foreign currency fluctuations, fair value of the derivative financial instrument isincluded in fair value of the accounts payable - other, accounts payable - trade, and accounts receivable - trade as hedged items.

2. Interest related
As of March 31, 2012
(Millions of yen)

Hedge accounting
methodDeferral hedge
accounting

Nature of transaction

Contract amount

Hedged items

Fair valueOver 1 year

Interest swap:
Receiving floating rate andpaying fix rate

Interest for loan

¥99,000¥84,000¥(993)

Note:
Fair value is based on information provided by financial institutions at the end of the fiscal year.

As of March 31, 2013
(Millions of yen)

Hedge accounting
methodDeferral hedge
accounting

Nature of transaction

Hedged items

Contract amount

Fair valueOver 1 year

Interest swap:
Receiving floating rate andpaying fix rate

Interest for loan

Note:
Fair value is based on information provided by financial institutions at the end of the fiscal year.

3. Securities related
There are no applicable items.

56¥94,000¥10,000¥(514)

SoftBank Corp. Consolidated Financial Report
For the fiscal year ended March 31, 2013

(Income Taxes)
1. Significant components of deferred tax assets and liabilities
Deferred tax assets(Millions of yen)Amounts
As of March 31, 2012

As of March 31, 2013

Depreciation / Amortization¥49,458¥55,830

Loss carryforwards

43,553

38,107

Investment securities

19,975

26,06930,28024,285

9,808

14,682

10,774

12,235

Provision for bonuses

7,778

10,250Allowances for point mileage

12,191

8,437

Allowances for doubtful accounts

12,297

7,851

Valuation of assets and liabilities of acquired consolidated subsidiaries
at fair market valueEnterprise tax payable
Accounts payable-other and accrued expenses

51,381

52,881Gross deferred tax assets

Others247,500

250,630

Less: valuation allowance(79,412)(88,016)

Total deferred tax assets

168,087

162,614

Deferred tax liabilities(Millions of yen)Amounts
As of March 31, 2012
Deferred gain on derivatives under hedge accounting
Deferred taxable gain on a sale of shares of a subsidiary to a 100%
owned subsidiary under Japanese group taxation regime
Unrealized gain on available-for-sale securities

As of March 31, 2013-

(71,974)(11,644)(11,660)(4,941)(4,141)Others(11,075)(14,204)

Total deferred tax liabilities(27,661)(101,981)

Net deferred tax assets¥140,426¥60,632

2. Reconciliation between the statutory income tax rate and effective income tax rate
For the fiscal year ended
March 31, 2012
40.69

Statutory tax rate

For the fiscal year ended
March 31, 201338.01 %

(Reconciliation)
Amortization of goodwill

3.84

3.58

Change in valuation allowance(5.81)

1.97

Dilution gain from changes in equity interest(1.27)(0.20)

1.97-

Decrease of deferred tax assets・liabilities
at fiscal year-end by the change of tax rate
Others0.87

0.79

Income tax rate per statements of income

40.29

44.15 %

57

SoftBank Corp. Consolidated Financial Report
For the fiscal year ended March 31, 2013

(Segment Information)
1. Segment information(1) Overview of reportable segments
Reportable segments of the Company are components of an entity about which separate financial information is available and suchinformation is evaluated regularly by the board of directors in deciding how to allocate resources and in assessing performance. The
Company as a pure holding company assigns core operating companies to primary businesses. The core operating companies develop
comprehensive business strategies for the products and services and perform business activities.
Accordingly, the Company’s segments are separated based on the products and services provided by the core operating companies, and 4
segments, “Mobile Communications,” “Broadband Infrastructure,” “Fixed-line Telecommunications,” and “Internet Culture” are treated asreportable segments. “Mobile Communications” business provides mobile communication services and sale of mobile phones
accompanying the services. “Broadband Infrastructure” business provides high-speed Internet connection service, IP telephony service, andcontents. “Fixed-line Telecommunications” business provides fixed-line telecommunication services. “Internet Culture” businessprovides Internet-based advertising operations, e-commerce site operations, such as Yahoo! Auctions and Yahoo! Shopping, andmembership services, etc.
(2) Calculation for net sales, segment income or loss, and others of reportable segments
Accounting treatment for reportable segments is the same as the treatment described in “Basis of Presentation of Consolidated Financial
Statements.” Income of reportable segments is based on operating income. Internal net sales between segments are under generalbusiness conditions, which are applied for external customers. Assets are not allocated between the reportable segments.
(3) Net sales, segment income or loss, and others of reportable segments
For the fiscal year ended March 31, 2012
(Millions of yen)
Reportable segments

Reconciliations to
Other

MobileBroadband

Fixed-line

1

Amounts in consolidated

Total

consolidated statement

Internetof income 2

Subtotalstatement of income 3

Communications

Infrastructure

Telecommunications

Culture¥2,138,650¥155,389¥292,674¥290,004¥2,876,720¥325,715¥3,202,435¥-¥3,202,435

6,248

16,51574,971

3,630

101,365

35,282

136,647(136,647)

-

Total

2,144,899

171,904

367,645

293,635

2,978,085

360,998

3,339,083(136,647)

3,202,435

Segment income

429,236

34,327

57,950156,821678,336

8,800

687,136(11,853)

675,283

Others:Depreciation
and amortization

203,455

14,39539,80010,288267,9396,277

274,216

1,609

275,825

Net sales:
Customers
Inter-segment

Notes:
1. The PC software and peripherals distribution business and Fukuoka SoftBank HAWKS Corp. related business are included in “Other.”
2. Amounts in the column “Reconciliations to consolidated statement of income” of ¥(11,853) million represents elimination of intersegment transactions andexpenses of the corporate division of the Company, which totaled ¥1,821 million and ¥(13,674) million, respectively.
3. Segment income is adjusted with operating income in the consolidated statements of income.

58SoftBank Corp. Consolidated Financial Report
For the fiscal year ended March 31, 2013

For the fiscal year ended March 31, 2013
(Millions of yen)
Reportable segments

Reconciliations to
Other

MobileBroadband

Fixed-line

Amounts in consolidated

1

Total

consolidated statement

statement of income 3Internetof income 2

SubtotalCommunications

Infrastructure

Telecommunications

Culture¥2,270,670¥136,598¥298,140¥332,516¥3,037,925¥340,439¥3,378,365¥-¥3,378,365

6,809

26,82889,0993,127

125,864

43,188169,052(169,052)

-

Total

2,277,479

163,427

387,239

335,643

3,163,790

383,628

3,547,418(169,052)

3,378,365

Segment income

467,829

34,73467,003

178,112

747,678

9,982

757,660(12,660)

745,000

Others:Depreciation
and amortization

263,840

14,741

39,967

12,738331,287

7,508

338,796

1,900

340,696

Net sales:
Customers
Inter-segment

Notes:
1. The PC software and peripherals distribution business and Fukuoka SoftBank HAWKS Corp. related business are included in “Other.”
2. Amounts in the column “Reconciliations to consolidated statement of income” of ¥(12,660) million represents elimination of intersegment transactions andexpenses of the corporate division of the Company, which totaled ¥1,806 million and ¥(14,467) million, respectively.
3. Segment income is adjusted with operating income in the consolidated statements of income.

2.

Information on amortization of goodwill and balance of goodwill of reportable segments

Fiscal year ended March 31, 2012
(Millions of yen)
Reportable segments
Other
MobileBroadband

Fixed-line

Communications

Infrastructure

Telecommunications

Internet Culture

Eliminationor corporate

Total

Subtotal

Amortization of goodwill¥51,427¥1,559¥7,283¥1,903¥62,174¥432¥-¥62,606

Balance of goodwill

724,272

1,559

27,92019,319773,072

7,170-

780,242

Note:
Negative goodwill, which occurred from a business combination before April 1, 2010, is offset by goodwill.

Fiscal year ended March 31, 2013
(Millions of yen)
Reportable segments
Other
MobileBroadband

Fixed-line

Communications

Infrastructure

Telecommunications

Internet Culture

Eliminationor corporate

Total

Subtotal

Amortization of goodwill¥51,427¥1,559¥7,283¥2,628¥62,899¥1,214¥-¥64,113

Balance of goodwill

672,844-

20,63735,207

728,689

5,717-

734,407

Note:
Negative goodwill, which occurred from a business combination before April 1, 2010, is offset by goodwill.

59

SoftBank Corp. Consolidated Financial Report
For the fiscal year ended March 31, 2013

(Per Share Data)
Fiscal year ended

Fiscal year ended

March 31, 2012

March 31, 2013

Shareholders’ equity per share (yen)¥852.69¥1,316.90

Net income per share - primary (yen)285.78258.35

Net income per share - diluted (yen)278.75254.12

Basic data for computation of the per share data
1. Net income (in millions of yen)
2. Net income allocated to common stock outstanding(in millions of yen)
3. Amounts not allocated to shareholders(in millions of yen)
4. Weighted average number of common stock outstanding during each year
(unit: shares)

Fiscal year ended

Fiscal year ended

March 31, 2012

March 31, 2013

313,752

289,403

313,752

289,403--

1,097,880,178

1,120,200,622

444

165

(136)

(63)

308

101

28,715,248

18,655,724

65,691

374,346

28,780,939

19,030,070

5. Adjustment for net income used to calculate net income per share – diluted(in millions of yen)
– Interest expense (net of tax)
– Adjustments for net income used to calculate diluted net income
per share in consolidated subsidiaries and affiliated companies– Total
6. Increase of common stock used to calculate net income per share– diluted(unit: shares)– Corporate bonds with stock acquisition rights– Stock acquisition rights– TotalStock acquisition rights
agreement on June 22, 2005, in
accordance with special
resolution at generalshareholders’meeting

7. Residual securities, which do not dilute net income per share

60-SoftBank Corp. Consolidated Financial Report
For the fiscal year ended March 31, 2013

(Significant Subsequent Events)
For the fiscal year ended March 31, 2013
Consolidation of GungHo Online Entertainment, Inc. as a subsidiary
GungHo Online Entertainment, Inc. (“GungHo”), an equity method affiliate of the Company, becomes a consolidated subsidiaryof the Company on May 7, 2013 (deemed acquisition date: April 1, 2013). As GungHo becomes a subsidiary and the Company
re-evaluates the ordinary shares of GungHo (the “shares of GungHo”), held by the SoftBank Group, at fair value based onparagraph 25 (2) of "Accounting Standard for Business Combinations" (Accounting Standards Board of Japan Statement No.21),¥150,119 million, which is the difference between the book value on a consolidation basis at the time of obtaining control and thefair value, will be recorded as special income in the first quarter of fiscal year ending March 31, 2014.
1. Overview of Consolidation
A subsidiary of the Company, SoftBank Mobile Corp. (the “SoftBank Mobile”), has resolved at its board of directors meetingon March 25, 2013, to acquire by tender offer (the “Tender Offer”) the shares of GungHo by cash. Accordingly, SoftBank
Mobile undertook the Tender Offer from April 1, 2013 to April 26, 2013 and expects to acquire the shares of GungHo on May
7, 2013 by this Tender Offer. In connection with the Tender Offer, SoftBank Mobile entered into an agreement to tendershares in the Tender Offer (the “Share Tender Agreement”) on March 25, 2013, with ASIAN GROOVE GOUDOU GAISHA(“Asian Groove”; number of shares held: 166,710 shares1 ; percentage of voting interest: 14.47% 2), which is the third largest
shareholder of GungHo and of which Taizo Son, the chairman of GungHo, is the representative partner. Under the ShareTender Agreement, Asian Groove has agreed to tender 73,400 shares (percentage of voting interest: 6.37%) of the shares of
GungHo, which are a portion of the shares of GungHo held by it.
In addition, the Company is notified that Masayoshi Son, chairman and CEO of the Company as well as chairman and CEO of
SoftBank Mobile, has entered into a Memorandum of Understanding on Exercise of Voting Rights for Deferment of Executionof Pledges (the “MOU”) with respect to the shares of GungHo on April 1, 2013, with Heartis Inc. (the “Heartis”; number ofshares held: 213,080 shares; percentage of voting interest: 18.5%), which is the second largest shareholder of GungHo andTaizo Son’s asset management company and of which Taizo Son, chairman of GungHo, is the representative director. The
Company is notified that, under the MOU, in order to have Son Holdings Inc. (the “Son Holdings”), of which Masayoshi Son
is a director and which is a Masayoshi Son’s asset management company, defer the execution of pledges over the shares of
GungHo held by Heartis, Heartis has agreed, effective as of April 1, 2013, to the effect that at the shareholders meeting of
GungHo, Heartis will exercise the voting rights for all of the shares of GungHo it holds in accordance with Masayoshi Son’s
directions. Consequently, GungHo becomes a consolidated subsidiary of the Company from an equity method affiliate.
Notes:
1. GungHo has resolved to execute a share split, effective April 1, 2013, at a ratio of ten shares for every one share (“GungHo Share
Split”). As a result, the number of shares held is set out using the figure calculated by multiplying the number of shares before the
GungHo Share Split by ten and converting that quotient to the number of shares after the GungHo Share Split (the “Number of
Shares After GungHo’s Share Split”), and the number of voting rights for the number of shares held is set out to that effect withrespect to the Number of Shares After GungHo’s Share Split.
2. Percentage of voting interest is calculated using the number of voting rights (1,152,010 rights) relating to the Number of Shares
After GungHo’s Share Split (1,152,010 shares) as the denominator, which is based on the number of shares (115,201 shares; theNumber of Shares After GungHo’s Share Split: 1,152,010 shares) calculated by adding (i) the total number of the GungHo's
outstanding shares as of December 31, 2012 (114,981 shares; the Number of Shares After GungHo’s Share Split: 1,149,810 shares)
set out in the 16th Securities Report filed by GungHo on March 22, 2013, to (ii) the number of GungHo's Shares (220 shares; theNumber of Shares After GungHo’s Share Split: 2,200 shares) that are subject to the number of the Series 1 Options as of December
31, 2012 (44 options) that are set out in that Securities Report.

61

SoftBank Corp. Consolidated Financial Report
For the fiscal year ended March 31, 2013

2. Purpose of the Tender Offer
The Company recognized the importance of enhancing mobile content by combining smartphone-focused development
capability and infrastructure held by SoftBank Mobile and planning and creating capability in the smartphone game industry
held by GungHo to further improve the efficiency in operation of the mobile communications business, profitability andcompetitiveness. As a result, the Company came to the conclusion that it is necessary to establish a direct capital relationshipbetween SoftBank Mobile and GungHo. In addition, it is important not only for SoftBank Mobile but also for the SoftBank
Group, which has based its business growth on the Internet, to address the environmental change caused by online devices,enhance the content lineup catering to the market’s various needs, and strengthen the content distribution capability of the
SoftBank Group. This also led to the decision to enhance the capital relationship with GungHo.
It is also expected that enhancing the capital relationship with GungHo and utilizing the global management resources held by
the SoftBank Group will contribute to the revenue and the expansion of distribution channels of online and smartphone games,
and allow GungHo, SoftBank Mobile and the SoftBank Group to enhance their revenue base and enterprise value.
3. Overview of the business combination(1) Outline of GungHo[1] Name

GungHo Online Entertainment, Inc.

[2] Address

3-8-1 Marunouchi, Chiyoda-ku, Tokyo[3] Name and title of representative

Kazuki Morishita, Representative director, President and CEO[4] Business description

Plan, development, operation and distribution of Internet online game
Plan and development of mobile content
Plan, development and sales of character goods
Plan, development and distribution of other entertainment content[5] Common stock¥5,332,504,000 (as of December 31, 2012)[6] Date of foundation

July 1, 1998

(2) Date of business combination
May 7, 2013 (deemed acquisition date: April 1, 2013)(3) The number of shares held and percentage of voting interest[1] Before the Tender Offer

Shareholder
SoftBank BB Corp.

Number of shares held

Number of voting rights

Percentage of votinginterest

387,440 shares

387,440

33.63%[2] Additional Shares acquired by the Tender Offer

Shareholder

Number of shares held

Number of voting rights

Percentage of votinginterest

SoftBank Mobile Corp.

73,400 shares

73,4006.37%

62SoftBank Corp. Consolidated Financial Report
For the fiscal year ended March 31, 2013

[3] After the Tender Offer

Number of shares held

Number of voting rights

Percentage of votinginterest

SoftBank BB Corp.

387,440 shares

387,440

33.63%SoftBank Mobile Corp.

73,400 shares

73,400

6.37%

Total

460,840 shares

460,84040.00%

Shareholder

Note:
Combined with shares held by Heartis, which has agreed with Masayoshi Son, chairman and CEO of the Company, who has aclose relationship with the Company that at the shareholders meeting of GungHo, Heartis will exercise the voting rights for all of
the shares of GungHo it holds in accordance with Masayoshi Son’s directions, the number of shares held will be 673,920 shares(number of voting rights 673,920, percentage of voting interest 58.50%).

(4) Basis of acquisition cost
The breakdown of the acquisition cost is SoftBank Mobile’s additional acquisition of ¥24,976 million (excluding the related
expenses) by the Tender Offer and the fair value of shares of ¥153,619 million, held by SoftBank BB Corp. The total is¥178,596 million.
(5) Purchase price allocation of acquisition cost
Purchase price allocation of acquisition cost is not determined yet.

63