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

SOFTBANK CORP.
CONSOLIDATED FINANCIAL REPORTFor the six-month period ended September 30, 2012
Tokyo, October 31, 2012

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

Net sales

Operating income

Ordinary income

Net income

Amount%Amount%Amount%Amount%Six-month period ended
September 30, 2012

¥1,586,109

3.3¥402,762

7.9¥363,010

15.4¥169,432(22.0)

Six-month period ended
September 30, 2011

¥1,535,647

4.8¥373,223

18.3¥314,485

23.9¥217,252

182.7

Note: Comprehensive income
Six-month period ended September 30, 2012:
Six-month period ended September 30, 2011:

Six-month period ended
September 30, 2012
Six-month period ended
September 30, 2011

¥183,052 million (6.8) %¥196,326 million 132.7%

Net income
per share－basic(yen)

Net income
per share－diluted(yen)¥154.23¥151.13¥198.15¥192.28(2) Financial Condition(Millions of yen; amounts less than one million yen are omitted.)

Total assets

Total equity

Equity ratio (%)

As of September 30, 2012

¥5,038,117¥1,520,781

20.0

As of March 31, 2012

¥4,899,705¥1,435,640

19.1

Note: Shareholders’equity
As of September 30, 2012:
As of March 31, 2012:¥1,006,631 million¥936,693 million

2. Dividends(Record date)

First quarter

Second quarter

Dividends per share
Third quarter

Fourth quarter

Total

(yen)

(yen)

(yen)

(yen)

(yen)

-

0.00

-

40.00

40.00

-

20.00
-

20.00

40.00

Fiscal year ended
March 31, 2012
Fiscal year ending
March 31, 2013
Fiscal year ending
March 31, 2013
(Forecasted)
Note:
Revision of forecasts on the dividends: No

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

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

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

1,114,398,214 shares
1,107,728,781 shares[2] Number of treasury stock:
As of September 30, 2012:
As of March 31, 2012:

9,183,708 shares
9,213,962 shares[3] Weighted average number of common stock:
As of September 30, 2012:
As of September 30, 2011:

1,098,553,765 shares
1,096,420,607 shares* Implementation status of quarterly review proceduresThis quarterly consolidated financial report is not subject to quarterly review procedures based on Financial Instruments and Exchange Act and thereview procedures for the quarterly consolidated financial statements were being conducted when this report was disclosed.
* Note to forecasts on the consolidated operating results and other items
The forecast figures are estimated based on the information which SOFTBANK CORP. is able to obtain at the present point and assumptions which are
deemed to be reasonable. However, actual results may be different due to various factors. Please refer to page 18 “1. Qualitative Information
Regarding Six-month Period Results (3) Qualitative Information Regarding Consolidated Earnings Forecasts” for details of notes to precondition andusage for forecasts.
On October 31, 2012 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 presentation material used inthis briefing 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 REPORTFor the six-month period ended September 30, 2012

(Appendix)
Contents
1.

2.

Qualitative Information Regarding Six-month Period Results(1) Qualitative Information Regarding Consolidated Results of Operations
1. Consolidated Results of Operations
2. Results by Business Segment（Reference 1: Principal Operational Data）（Reference 2: Definition and Calculation Method of ARPU, etc., in the Mobile
Communications Business）（Reference 3: Capital Expenditure and Depreciation）(2) Qualitative Information Regarding Consolidated Financial Position
1. Assets, Liabilities, and Equity
2. Cash Flows（Reference: Major Financing Activities）(3) Qualitative Information Regarding Consolidated Earnings Forecasts
Consolidated Financial Statements(1) Consolidated Balance Sheets(2) Consolidated Statements of Income and Consolidated Statements of Comprehensive
Income(3) Consolidated Statements of Cash Flows(4) Significant Doubt About Going Concern Assumption(5) Notes(6) Segment Information(7) Significant Changes in Shareholders’ Equity(8) Significant Subsequent Events

1

p. 2
p. 2
p. 2
p. 5
p.10
p.12
p.13
p.14
p.14
p.17
p.18
p.18
p.19
p.19
p.21
p.25
p.27
p.27
p.29
p.29
p.30

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the six-month period ended September 30, 20121.

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

Consolidated Results of Operations< Overview of results for the interim period from April 1, 2012 to September 30, 2012>
For the six-month period ended September 30, 2012 (hereafter “the interim period”), the SOFTBANK Group(hereafter “the Group”) achieved consolidated net sales of ¥1,586,109 million, a ¥50,462 million (3.3%) increase
compared with the same period of the previous fiscal year (April 1, 2011 to September 30, 2011, hereafter “year onyear”), with a ¥29,539 million (7.9%) increase in operating income to ¥402,762 million. Ordinary income grew
¥48,525 million (15.4%) to ¥363,010 million. Net income declined ¥47,820 million (22.0%) to ¥169,432 million.
Note:
Definition of terms: as used in this consolidated financial report for the six-month period from April 1, 2012 to September 30, 2012,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 interim period were as follows:(a) Net Sales
Net sales totaled ¥1,586,109 million, for a ¥50,462 million (3.3%) year-on-year increase.

This was mainly due toincreased telecom service revenue, primarily from steady growth in the number of mobile phone subscribers.

(b) Cost of Sales
Cost of sales increased ¥41,503 million (6.2%) year on year to ¥712,470 million.

This was primarily due to anincrease in depreciation and amortization in the Mobile Communications segment, mainly due to the installationof additional base stations.

(c) Selling, General, and Administrative Expenses
Selling, general, and administrative expenses declined by ¥20,579 million (4.2%) year on year to ¥470,877 million.
This was mainly because of a decrease in the total amount of sales commissions1 in the Mobile Communications
segment, resulting from an increase in the proportion of units sold having a lower acquisition cost per subscriber
among total units sold.

(d) Operating Income
As a result, operating income totaled ¥402,762 million, for a ¥29,539 million (7.9%) year-on-year increase.
operating margin rose 1.1 percentage points year on year to 25.4%.

1

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

2

The

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the six-month period ended September 30, 2012(e) Non-operating Income / Expenses
Non-operating income totaled ¥6,591 million, a ¥177 million (2.6%) year-on-year decrease. Non-operating
expenses were ¥46,343 million, a ¥19,163 million (29.3%) year-on-year decrease. This primarily reflected adecrease in interest expense of ¥22,909 million as SOFTBANK MOBILE Corp. paid off its SBM loan2 in October
2011. Moreover, in the same period of the previous fiscal year, the Group had recorded refinancing related
expenses of ¥12,695 million for refinancing part of the SBM loan. Meanwhile, the Group recorded equity inlosses of affiliated companies of ¥18,163 million, mainly due to a write-down of goodwill that arose when
acquiring the shares of InMobi Pte. Ltd.

(f) Ordinary Income
Ordinary income therefore totaled ¥363,010 million, for a ¥48,525 million (15.4%) year-on-year increase.

(g) Special Income
Special income totaled ¥7,351 million, for a ¥95,379 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 same
period of the previous fiscal year, gain on sale of investment securities of ¥83,527 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 ¥17,158 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 ¥11,696 million, for a ¥2,541 million year-on-year increase. A valuation loss on investment
securities of ¥8,521 million was recorded, mainly associated with a drop in the stock price of Zynga Inc., in which
the Group holds shares.

(i) Income Taxes
Provisions for current income taxes were ¥140,155 million and provisions for deferred income taxes were ¥15,662
million.

Total income taxes decreased ¥2,881 million year on year to ¥155,817 million.

(j) Minority Interests in Net Income
Minority interests in net income totaled ¥33,415 million, mainly related to net income recorded at Yahoo Japan
Corporation.

(k) Net Income
As a result of the above, net income totaled ¥169,432 million, for a ¥47,820 million (22.0%) year-on-year
decrease.

2

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

3

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the six-month period ended September 30, 2012(l) Comprehensive Income
Comprehensive income totaled ¥183,052 million, for a ¥13,273 million (6.8%) year-on-year decrease. Of this,comprehensive income attributable to owners of the parent was ¥150,743 million, for a ¥15,630 million (9.4%)
year-on-year decrease, and comprehensive income attributable to minority interests was ¥32,309 million, for a¥2,356 million (7.9%) year-on-year increase.

4

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the six-month period ended September 30, 2012

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)Six-month Period
Ended
September 30, 2011

Six-month Period
Ended
September 30, 2012

Net sales

1,020,937

1,048,445

27,508

2.7％

Operating income

250,086

266,384

16,297

6.5％

ChangeChange %3

・ 1,512,200 net subscriber additions

for the interim period
for the second quarter was ¥4,070, a ¥230 year-on-year6 decrease.
Data ARPU amounted to ¥2,580, a ¥60 year-on-year increase.
4・ ARPU5< Revenue Recognition >In the Mobile Communications segment, net sales are mainly generated through telecom service revenue and salesof mobile handsets. The telecom services consist of voice and data services and are recognized as revenue whenservices are provided to customers, based upon basic flat-rate monthly charges plus usage of traffic in accordancewith price plans subjected to discounts.
Sales of mobile handsets are recognized when merchandise is shipped to sales agents. The agents sell themobile handsets to the customers, mainly by installment payments over a period of 24 months. SOFTBANKMOBILE Corp. purchases the installment sales receivables from the agents and collects the installment salesreceivables during the 24 months.
Activation fees from new customers are recognized as revenue when services are activated.

< Overview of Operations >The segment’s net sales increased by ¥27,508 million (2.7%) year on year to ¥1,048,445 million. The main
factor behind the increase was increased telecom service revenue resulting from steady growth in the number ofmobile phone subscribers. Sales of mobile handsets declined due to an increase in the proportion of handsets
shipped7 having lower unit prices, despite an overall increase in handsets shipped.
The segment’s operating expenses increased ¥11,211 million (1.5%) year on year to ¥782,061 million. The
principal cause of this increase was higher depreciation and amortization recorded, mostly relating to theinstallation of additional base stations. Meanwhile, the segment saw a decline in sales commissions in line with
3
4
5
6
7

The number of net subscriber additions includes prepaid mobile phones and communication module service subscribers.
Net communication module service subscriber additions for the interim period totaled 317,000.
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).”
The three month period ended September 30, 2012 (from July 1 to September 30, 2012)
Compared to the three month period ended September 30, 2011 (from July 1 to September 30, 2011)
Handsets shipped: the number of handsets shipped (sold) to agents

5

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the six-month period ended September 30, 2012

an increased proportion of units sold that have lower acquisition cost per subscriber among total units sold.
Operating income increased by ¥16,297 million (6.5%) year on year to ¥266,384 million.

< Number of Mobile Phone Subscribers >Net subscriber additions (new subscribers minus cancellations) for the interim period totaled 1,512,200. Thiswas primarily the result of steady sales of smartphones such as iPhone8 and AndroidTM 9 handsets, as well as
strong sales of iPad,8 and Mimamori Phone (handset with security buzzer). As a result, the cumulative number ofsubscribers 10 at the end of the interim period stood at 30,461,200, raising SOFTBANK MOBILE Corp.’s
cumulative subscriber share by 1.4 percentage points year on year, to 23.9%.11< Number of Mobile Handsets Shipped and Units Sold >Handsets shipped for the interim period increased by 102,000 year on year to 4,990,000. The number of units
sold (total number of new subscriptions and handset upgrades) for the interim period increased by 369,000 year on
year to 5,584,000. Of units sold, new subscriptions increased by 194,000 year on year to 3,382,000, whilehandset upgrades increased by 175,000 year on year to 2,202,000.
The increases in handsets shipped and units sold were mainly due to steady shipments and sales of smartphones,
iPad, Mimamori Phone, and mobile data communications devices, while conventional mobile units sold decreased.
In smartphones, iPhone 5, which was launched in September 2012, performed strongly in terms of handset
shipments and sales.

< ARPU >ARPU for the second quarter (based on cumulative subscribers including communication modules) decreased¥230 year on year to ¥4,070. Out of this, voice ARPU declined ¥290 year on year to ¥1,490 and data ARPU rose
¥60 year on year to ¥2,580.
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) and a decrease in revenues
from incoming calls,12 which was the result of a reduction in interconnection charges between operators. On theother hand, the increase in data ARPU was mainly the result of the continuing increase in the number of high data
ARPU smartphone subscribers, although the increase in subscribers to low data usage products such as Mimamori
Phone has also had a dilution effect on data ARPU.

8
9
10
11
12

iPhone and iPad are trademarks of Apple Inc. The iPhone trademark is used under license from Aiphone K.K.
Android is a trademark or a registered trademark of Google Inc.
The cumulative number of subscribers includes prepaid mobile phones and communication module service subscribers.
of communication module service subscribers at the end of the interim period was 2,367,000.

The cumulative number

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

6

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the six-month period ended September 30, 2012

< Churn Rate and Upgrade Rate >The churn rate13 for the second quarter was 1.06%, which was 0.03 of a percentage point lower year on year.
The upgrade rate13 for the second quarter was 1.42%, which was 0.11 of a percentage point higher year on year.
This was mainly because of an increase in the number of upgrades to iPhone 5.

< Average Acquisition and Upgrade Cost per Subscriber>
The average acquisition cost per subscriber14 for the second quarter declined ¥7,800 year on year to ¥23,000.
This was mainly due to the growth in the proportion of units sold to new subscribers for which the acquisition cost
per subscriber is lower among total sales to new subscribers.
The average upgrade cost per subscriber15 for the second quarter decreased ¥2,200 year on year to ¥26,400.

13
14
15

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 sales agents per new subscription. New subscriptions include prepaid mobile phones and communication
modules.
The average commission paid to sales agents per handset upgrade. Upgrades include communication modules.

7

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

Six-month Period
Ended
September 30, 2012

Net sales

87,261

82,354(4,906)(5.6%)

Operating income

19,65819,536(121)(0.6%)The segment’s net sales decreased by ¥4,906 million (5.6%) year on year to ¥82,354 million.

This was mainly

ChangeChange %<Overview of Operations>because an increase in the share of sales accounted for by Yahoo! BB hikari with FLET'S,16 which has a relatively
lower ARPU.17

On the other hand, the cumulative number of Yahoo! BB subscribers (total of the cumulative

number of Yahoo! BB ADSL subscribers and the cumulative number of Yahoo! BB hikari with FLET’S
subscribers18) at the end of the interim period increased year on year.
Operating income decreased by ¥121 million (0.6%) year on year to ¥19,536 million. Although there was adecrease in operating expenses such as sales commissions this did not offset the decrease in revenue.
The cumulative number of Yahoo! BB subscribers at the end of the interim period totaled 4,227,000 for an
increase of 18,000 from March 31, 2012. Out of this, the cumulative number of Yahoo! BB ADSL subscribers
stood at 2,364,000, a decrease of 237,000 from March 31, 2012, and the cumulative number of Yahoo! BB hikariwith FLET’S subscribers totaled 1,863,000, an increase of 255,000 from March 31, 2012.

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

Six-month Period
Ended
September 30, 2012

Net sales

178,075

191,978

13,903

7.8％

Operating income

27,28734,640

7,352

26.9％

The segment’s net sales increased by ¥13,903 million (7.8%) year on year to ¥191,978 million.

This was mainly

ChangeChange %<Overview of Operations>due to recording sales related to projects for installing telecommunications signal transfer stations and an increasein provision of telecommunication lines to Group companies such as SOFTBANK MOBILE Corp.
Operating income increased by ¥7,352 million (26.9%) to ¥34,640 million. This was due to the increase in net
sales, combined with a decrease in lease payments for OTOKU Line equipment and a decrease in interconnection
charges paid to other operators at SOFTBANK TELECOM Corp., following a reduction in interconnection
16

17
18

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

8

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the six-month period ended September 30, 2012charges between operators.

(d) Internet Culture(Millions of yen)Six-month Period
Ended
September 30, 2011

Six-month Period
Ended
September 30, 2012

Net sales

141,472

152,438

10,965

7.8％

Operating income

75,16880,878

5,710

7.6％

The segment’s net sales increased by ¥10,965 million (7.8%) year on year to ¥152,438 million.

Overall revenue

ChangeChange %<Overview of Operations>

growth was driven by revenue from listing advertising,sponsored-search advertising

20

19

supported by a large increase in revenue fromand revenue from interest-match advertising. 21

Revenue from bothsponsored-search advertising and interest-match advertising via smartphones increased significantly.
22

also a large increase in revenue from display advertising,

There wasincluding growth in advertisements on Prime Display.

Revenues from information listing services such as job vacancy information and real estate also rose substantially.
Growth in information listing services such as data center and game-related services also contributed to higher
overall sales.
Operating income increased by ¥5,710 million (7.6%) year on year to ¥80,878 million.

This was primarily the

result of an increase in net sales, as well as efforts to reduce costs such as advertising expenses and businessoutsourcing expenses.

19

Text-based advertisements charged on a cost-per-click basis.
20 Advertisements shown on search results, etc. of Yahoo! JAPAN and major affiliated sites using a mechanism in which advertisements highly
relevant to the key word used in search are shown.
21 A mechanism that enables advertisers to show advertisements related to products and services in which a user might be interested, based on thecontent the user is viewing or the user’s interests (as derived from the user’s previous interactions or search keywords).
22 Graphical, Flash and video advertising that appears next to content on the Internet. Prime Display advertising is a form of display advertising
shown on pages other than Yahoo! JAPAN’s top page.

9

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the six-month period ended September 30, 2012

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

Fiscal Year Ended March 31, 2012
Q1

Q2

Q3

Q4

Q1

Full Year

Q2( Thousands)

Net additions23(Postpaid)(Prepaid)
Market share24
among 4 operators (%)
Market share24
among 3 operators (%)

730.0
697.5
32.5

759.7
744.8
14.9

936.9
943.5
(6.6)

1,113.7
1,131.0(17.3)

3,540.3
3,516.8
23.5

753.1
772.1
(19.0)

759.1
771.0(11.9)

42.7

40.4

-

-

-

-

-

49.1

46.2

42.4

45.8

45.6

47.5

47.9

26,138.7

26,898.4

27,835.3

28,949.0

29,702.1

30,461.2

21.6

21.8

-

-

-

-

22.2

22.5

22.9

23.3

23.6

23.9

2,493

2,395

3,770

3,025

11,682

2,359

2,631

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

ARPU27

4,210

4,310

4,230

3,890

4,150

4,020

4,070

28

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

36,20030,80025,70029,40030,30026,50023,00029,00028,60025,80026,30027,10027,00026,400

Churn rate31(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

(% per month)
Upgrade rate31

1.28

1.31

2.36

1.38

1.59

1.05

1.42

(Thousands)

Cumulative
subscribers23
Market share24
among 4 operators (%)
Market share24
among 3 operators (%)(Thousands)

Number ofhandsets shipped25(Thousands)

Units sold26(New subscriptions)(Handset upgrades)(Yen per month)(Voice)(Data)(Yen)

Average acquisition cost
per subscriber29(Yen)

Average upgrade cost
per subscriber30(% per month)

23
24

25
26
27
28
29
30
31

Includes the number of prepaid mobile phones and communication module service subscribers.
Calculated by the Company based on Telecommunications Carriers Association statistical data.
4 operators: NTT DOCOMO, INC., KDDI CORPORATION, eAccess Ltd. and SOFTBANK MOBILE Corp.
3 operators: NTT DOCOMO, INC., KDDI CORPORATION, and SOFTBANK MOBILE Corp.
From December 2011, net additions and cumulative subscribers of eAccess Ltd. are no longer disclosed to the Telecommunications Carriers
Association. Therefore, from the third quarter of the fiscal year ended March 2012, the market share among 4 operators has not been calculated.
Handsets shipped: the number of handsets shipped (sold) to agents
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 sales agents per new subscription. New subscriptions include prepaid mobile phones and communication
modules.
The average commission paid to sales agents per handset upgrade. Upgrades include communication modules.
For definition and calculation of the churn and upgrade rates, see page 12 “(Reference 2: Definition and Calculation Method of ARPU, etc., in the
Mobile Communications Business).”10

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the six-month period ended September 30, 2012

(Reference)
Fiscal Year Ending
March 31, 2013

Fiscal Year Ended March 31, 2012
Q1

Q2

Q3

Q4

Full Year

Q1

Q2(Yen per month)

ARPU27(excluding
communication
modules）(Voice) 28(Data)

(b)

4,430
1,880
2,550

4,550
1,900
2,660

4,490
1,820
2,670

4,140
1,450
2,690

4,400
1,760
2,640

4,300
1,590
2,710

4,370
1,610
2,760

Broadband Infrastructure

Yahoo! BB
Fiscal Year Ending
March 31, 2013

Fiscal Year Ended March 31, 2012
Q1

Q2

Q3

Q4

Full Year

Q1

Q2(Thousands)

Yahoo! BB cumulative
subscribers32

4,118

4,145

4,175

4,209

4,238

4,227

3,009

2,873

2,737

2,600

2,467

2,364

3,710

3,650

3,580

3,510

3,450

3,390

2.56

2.43

2.35

2.44

2.45

2.60

2.12

1,109

1,272

1,437

1,608

1,771

1,863

1,620

1,660

1,670

1,670

1,710

Yahoo! BB ADSL
(Thousands)

Cumulative
subscribers(Yen per month)

ARPU33(% per month)

Churn rate
Yahoo! BB hikari with FLET'S(Thousands)

Cumulative
subscribers34(Yen per month)

ARPU33

1,680(c)Fixed-line TelecommunicationsOTOKU Line
Fiscal Year Ending
March 31, 2013

Fiscal Year Ended March 31, 2012
Q1

Q2

Q3

Q4

Full Year

Q1

Q2(Thousands)

Cumulative
lines

1,669

1,679

1,678

6,650

6,570

6,550

1,685

1,684

1,692

6,530

6,390

(Yen per month)

ARPU3332

6,790

Total of the cumulative number of Yahoo! BB ADSL subscribers and the cumulative number of Yahoo! BB hikari with FLET’S subscribers.
33
Average Revenue Per User: average revenue per contract (rounded to the nearest ¥10)
34
Number of users for which connection construction for FLET’S HIKARI line at central office of NTT East or NTT West is complete and who areprovided with services.

11

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the six-month period ended September 30, 2012

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

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

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

Revenues from incoming calls:

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

2.

Definition and calculation method of churn rate
Churn rate ＝ churn / number of active subscribers（rounded 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 the nearest
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 REPORTFor the six-month period ended September 30, 2012

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

Fiscal Year Ending
March 31, 2013

Fiscal Year Ended March 31, 2012
Full Year

Q2

Q1

Q2

Q3

Q4

Q1

MobileCommunications

84,076

98,39993,675

146,613422,766

82,464

134,003

Broadband
Infrastructure

5,739

3,861

4,638

12,523

26,762

2,671

4,819

Fixed-line
Telecommunications

6,320

8,281

10,654

14,621

39,877

8,236

8,280

Internet Culture

3,349

4,609

3,743

4,218

15,921

4,942

3,194

Others

1,710

5,338

2,041

1,958

11,047

94,9701,942

Consolidated total

101,196

120,490

114,753

179,935

516,375

193,286

152,240(b) Depreciation and Amortization (excluding amortization of goodwill)（Millions of yen）

Fiscal Year Ending
March 31, 2013

Fiscal Year Ended March 31, 2012
Q1

Q2

Q3

Q4

46,202

48,69149,26659,295

3,540

3,452

3,507

9,188

9,684

Internet Culture

2,291

OthersConsolidated total

MobileCommunications
Broadband
Infrastructure
Fixed-line
Telecommunications

Q1

Q2

203,455

58,46762,267

3,894

14,395

3,441

3,475

9,957

10,96939,800

9,749

9,777

2,395

2,703

2,896

10,288

2,636

3,134

1,521

1,592

2,350

2,421

7,886

2,185

2,349

62,74465,81667,78579,478275,825

76,48081,00413

Full Year

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the six-month period ended September 30, 2012

(2) Qualitative Information Regarding Consolidated Financial Position
1.

Assets, Liabilities, and Equity

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

As of March 31, 2012

As of September 30, 2012

ChangeChange %Total assets

4,899,705

5,038,117

138,412

2.8％

Total liabilities

3,464,065

3,517,335

53,2701.5％

Total equity

1,435,640

1,520,781

85,141

5.9％(a) Current Assets
Current assets at the end of the interim period totaled ¥1,931,718 million, for a ¥21,266 million (1.1%) increase
from March 31, 2012, (hereafter “the previous fiscal year-end”). The primary components of the change were as
follows:
・ Cash and deposits increased by ¥80,547 million from the previous fiscal year-end.
・ Notes and accounts receivable-trade decreased by ¥60,063 million from the previous fiscal year-end.

Thisdecrease was mainly the result of continued sales of installment sales receivables at SOFTBANK MOBILE
Corp.

(b) Fixed Assets
Fixed assets totaled ¥3,101,251 million at the end of the interim period, for a ¥117,698 million (3.9%) increase
from the previous fiscal year-end.

The primary components of the change were as follows:

・ Property and equipment increased ¥161,791 million from the previous fiscal year-end.

The main increases

were ¥50,714 million in land, ¥39,855 million in buildings and structures, and ¥36,142 million intelecommunications equipment. The increases in land and buildings and structures were due primarily torecording the lease asset relating to the Yahoo! JAPAN Dome (hereafter, “the Yahoo! Dome”) on the
consolidated balance sheet for the first quarter (the three-month period from April 1, 2012 to June 30, 2012).
In accordance with transitional measures, after the revision of the accounting standard for leases effective from
April 1, 2008, the lease contract relating to the Yahoo! Dome continued to be accounted for as an operating leasetransaction, while being classified as a finance lease that did not transfer ownership of the leased property to thelessee.

Fukuoka SOFTBANK HAWKS Marketing Corp. (hereafter “HAWKS Marketing”) entered into apurchase contract in March 2012 to acquire a trust beneficiary interest in the Yahoo! Dome in July 2015. As aresult, the lease contract was reclassified as a finance lease that is deemed to transfer ownership of the leased
asset to the lessee and recorded as a lease asset on the consolidated balance sheet.

Although HAWKS

Marketing entered into this contract in March 2012, since HAWKS Marketing’s fiscal year ends in February its
financial statements are reflected in the consolidated financial statements with a one-month lag. Therefore, thisis reflected in the consolidated financial statements for the interim period.

Meanwhile, the increase intelecommunications equipment was primarily due to new acquisitions of equipment such as base stations inorder to strengthen the communications network in the Mobile Communications segment.
・ Total intangible assets increased ¥1,488 million from the previous fiscal year-end.

14

This was mainly because

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the six-month period ended September 30, 2012software increased by ¥39,361 million as a result of new acquisitions of telecommunications equipment. On
the other hand, goodwill decreased by ¥29,374 million resulting from regular amortization of the goodwill
recorded when the Company acquired SOFTBANK MOBILE Corp., SOFTBANK TELECOM Corp., andothers.
・ Investments and other assets decreased by ¥45,581 million from the previous fiscal year-end.

This was mainly

due to a ¥46,568 million decrease in investment securities, the primary components of which were a decrease of¥51,207 million as a result of Alibaba Group Holding Limited, the Company’s equity method affiliate, acquiring
the shares of Alibaba.com Limited, a subsidiary of Alibaba Group Holding Limited, through a takeover bid in
June 2012 and privatizing it (please refer to page 29“(7) Significant Changes in Shareholders’ Equity under 2
Consolidated Financial Statements” for details) and a decrease of ¥20,908 million, mainly associated with thedrop in the stock price of Zynga Inc. Yahoo Japan Corporation’s acquisition of 42.6% of the shares (voting
rights at the time of acquisition) of ASKUL Corporation at ¥33,038 million is also reflected.

(c) Current Liabilities
Current liabilities at the end of the interim period totaled ¥1,807,866 million, for a ¥115,858 million (6.0%)
decrease from the previous fiscal year-end.

The primary components of the change were as follows:・ Accounts payable – other and accrued expenses decreased by ¥243,834 million from the previous fiscal

year-end. This was mainly the result of the payment of an accounts payable – other of ¥200,000 million to theVodafone Group in April 2012 by the Company, as well as the payment of unpaid sales commissions to sales
agents from the year-end shopping season of the previous fiscal year by SOFTBANK MOBILE Corp.
・ Short-term borrowings increased ¥49,972 million from the previous fiscal year-end.
・ The current portion of corporate bonds increased by ¥45,564 million from the previous fiscal year-end.

This

was mainly due to reclassifications from long-term liabilities in the amounts of ¥25,000 million for the 31st
Unsecured Straight Corporate Bond and ¥130,000 million for the 33rd Unsecured Straight Corporate Bond.
Meanwhile, redemptions of corporate bonds in the amounts of ¥30,000 million for the 28th Unsecured Straight
Corporate Bond and ¥65,000 million for the 29th Unsecured Straight Corporate Bond are also reflected.

(d) Long-term Liabilities
Long-term liabilities totaled ¥1,709,468 million at the end of the interim period, for a ¥169,129 million (11.0%)
increase from the previous fiscal year-end.

The primary components of the change were as follows:・ Lease obligations increased by ¥140,794 million from the previous fiscal year-end.

This was mainly due to thereclassification of the lease contract concluded by HAWKS Marketing related to the Yahoo! Dome from financeleases that do not transfer ownership of the leased property to the lessee to finance leases that are deemed totransfer ownership of the leased property to the lessee (please refer to (b) Fixed Assets on page 14 for details).
Another factor was an increase in new acquisitions of telecommunications equipment through lease transactions.
・ Long-term debt increased ¥68,573 million from the previous fiscal year-end.
・ Corporate

bonds decreased ¥45,000 million from the previous fiscal year-end.

This was due toreclassifications of corporate bonds from long-term to current liabilities in the amounts of ¥25,000 million forthe 31st Unsecured Straight Corporate Bond and ¥130,000 million for the 33rd Unsecured Straight Corporate

15

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the six-month period ended September 30, 2012

Bond as the redemption date came to be within one year. On the other hand, the Company issued corporate
bonds in the amount of ¥100,000 million for the 39th Unsecured Straight Corporate Bond and ¥10,000 million
for the 40th Unsecured Straight Corporate Bond.

(e) Equity
Equity totaled ¥1,520,781 million at the end of the interim period, for a ¥85,141 million (5.9%) increase from theprevious fiscal year-end. The equity ratio increased 0.9 of a percentage point from the previous fiscal year-end to
20.0%.

The primary components of the change were as follows:(Shareholders’ equity)
Shareholders’ equity increased ¥88,626 million from the previous fiscal year-end to ¥1,046,573 million.
・ At the end of the interim period, common stock totaled ¥221,020 million, an increase of ¥7,223 million.

This

was the result of the conversion of the Convertible Bond Due 2013 into the common stock of the Company.
・ Additional paid-in capital decreased by ¥44,003 from the previous fiscal year-end.

This was primarily adecrease of ¥51,207 million as a result of Alibaba Group Holding Limited, the Company’s equity method
affiliate, acquiring the shares of Alibaba.com Limited, a subsidiary of Alibaba Group Holding Limited, througha takeover bid in June 2012 and privatizing it (please refer to page 29“(7) Significant Changes in Shareholders’Equity under 2 Consolidated Financial Statements” for details). On the other hand, the conversion of theConvertible Bond Due 2013 into the common stock of the Company increased shareholders’ equity by ¥7,212
million.
・Retained earnings increased ¥125,332 million from the previous fiscal year-end.

This was primarily because

net income of ¥169,432 million was recorded, although this was partially offset by a year-end dividend for theyear ended March 31, 2012 of ¥43,940 million.
(Valuation and translation adjustments)
Valuation and translation adjustments of ¥39,942 million were recorded as debit at the end of the interim period, a¥18,688 million decrease from the previous fiscal year-end.
・ Net unrealized gain on available-for-sale securities was ¥210 million at the end of the interim period, a ¥10,355

million decrease from the net unrealized gain at the previous fiscal year-end. This decrease was mainly
associated with the drop in the stock price of Zynga Inc.
・ Foreign currency translation adjustments decreased by ¥8,502 million from the previous fiscal year-end to a

debit of ¥39,329 million at the end of the interim period.
(Minority interests)
・ Minority interests totaled ¥513,228 million at the end of the interim period, for a ¥15,181 million increase fromthe previous fiscal year-end.

16

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the six-month period ended September 30, 2012

2.

Cash Flows

Cash flows during the interim period were as follows:
Cash and cash equivalents at the end of the interim period totaled ¥1,097,086 million, for a ¥82,527 million
increase from the previous fiscal year-end.
(Millions of yen)Six-month Period
Ended
September 30, 2011

Six-month Period
Ended
September 30, 2012

Cash flows from operating activities

395,044473,351

78,306

Cash flows from investing activities(159,829)(326,034)(166,204)(Reference) Free cash flow

235,214147,316(87,898)

Cash flows from financing activities(191,568)(61,506)

130,062

Change(a) Cash Flows from Operating Activities
Net cash provided by operating activities totaled ¥473,351 million (compared with ¥395,044 million provided in
the same period of the previous fiscal year). The primary components of the change were as follows:・ Income before income taxes and minority interests totaled ¥358,665 million.
・ The main items added to income before income taxes and minority interests were ¥157,485 million in

depreciation and amortization and ¥31,660 million in amortization of goodwill.
・ Receivables – trade declined by ¥59,824 million (increase in cash flow).

This decrease was mainly the resultof continued sales of installment sales receivables at SOFTBANK MOBILE Corp.
・ Income taxes paid was ¥115,750 million.

(b) Cash Flows from Investing Activities
Net cash used in investing activities was ¥326,034 million (compared with ¥159,829 million used in the same
period of the previous fiscal year). The primary components of the change were as follows:・ Outlays for purchase of property and equipment, and intangibles came to ¥272,890 million.

The main factor

was capital expenditure in the telecommunications-related businesses.
・ Outlays for purchase of marketable and investment securities were ¥57,246 million.

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

As a result, free cash flow (the combined net cash flows from operating activities and investing activities) for theinterim period was a positive ¥147,316 million (compared with a positive ¥235,214 million in the same period of
the previous fiscal year), for a year-on-year decrease of ¥87,898 million.

(c) Cash Flows from Financing Activities
Net cash used in financing activities was ¥61,506 million (compared with ¥191,568 million used in the same
period of the previous fiscal year). The primary components of the change were as follows:17

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the six-month period ended September 30, 2012

(Items increasing cash flows)
・ Proceeds included ¥167,091 million from the sale and lease back of equipment newly acquired, ¥152,708

million from long-term debt, ¥109,443 million from issuance of bonds and ¥99,855 million from increase in
short-term borrowings, net.
(Items decreasing cash flows)・ Outlays included ¥200,444 million for payments for repurchase of minority interests and long-term debt,¥134,043 million for the repayment of long-term debt, ¥95,000 million for the redemption of bonds, ¥93,191
million for the repayment of lease obligations, and ¥43,766 million for the payment of dividends.

The

payments for repurchase of minority interests and long-term debt are the amount paid to the Vodafone Group in
April 2012, and various related fees. Please refer to 5. Payments for repurchase of minority interests andlong-term debt on page 28 in (5) Notes under 2. Consolidated Financial Statements for details.

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

Company NameSOFTBANK CORP.

Details
39th Unsecured Straight Corporate Bond
(Fukuoka SoftBank HAWKS Bond)

40th Unsecured Straight Corporate Bond

Bond
redemption

SOFTBANK CORP.

28th Unsecured Straight Corporate Bond
29th Unsecured Straight Corporate Bond
(Fukuoka SoftBank HAWKS Bond)

Increase or
decrease in debt

SOFTBANK CORP.

Increase of ¥118,600 million

Execute saleand lease back

SOFTBANK MOBILE Corp.
etc.

Procurement of ¥167,091 million

Summary
Issue date: September 24, 2012
Redemption date: September 22, 2017
Total amount of issue: ¥100,000 million
Interest rate: 0.74%/year
Issue date: September 14, 2012
Redemption date: September 14, 2017
Total amount of issue: ¥10,000 million
Interest rate: 0.732%/year
Redemption date: July 24, 2012
Redemption amount: ¥30,000 million
Redemption date: September 18, 2012
Redemption amount: ¥65,000 million

Capital expenditure via finance leases(3) Qualitative Information Regarding Consolidated Earnings Forecasts
For the fiscal year ending March 31, 2013, the Group will continue to focus on network expansion andcustomer acquisition in the Mobile Communications segment. Although this will increase the Group’s
expenses, the customer base is expected to continue to expand steadily. As a result, the Group is forecastinga year-on-year increase in both net sales and operating income, and expects operating income to exceed ¥700
billion.
The Group has declared a target of achieving consolidated operating income of ¥1 trillion in its domestic
businesses in the fiscal year ending March 31, 2017, and is also projecting further profit growth in the fiscal
year ending March 31, 2014 as it continues towards this goal. The planned acquisition of Sprint Nextel
Corporation announced on October 15, 2012 is one means by which the Group expects to accelerate its
growth.

18

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the six-month period ended September 30, 2012

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

As of
September 30, 2012

AmountAmountASSETS
Current assets:
Cash and deposits¥1,016,251¥1,096,799

661,287

601,224

Marketable securities

4,575

6,624

Merchandise and finished products

42,61842,170

Deferred tax assets

56,46941,655

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

168,264

177,461

Notes and accounts receivable - trade(39,014)(34,216)

1,910,452

1,931,718

Buildings and structures

77,404

117,260

Telecommunications equipment

988,541

1,024,684

Telecommunications service lines

65,21362,516

Land

23,17573,890Construction in progress

80,501

112,826

Other property and equipment

61,55567,007

Total property and equipment

1,296,393

1,458,185

Goodwill

780,242

750,868

Software310,151

349,512

Other intangibles

36,12027,621

1,126,514

1,128,002

Investment securities

338,198

291,629

Deferred tax assets

104,327

104,959

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

134,076

134,908(15,957)(16,433)

560,644515,063

Total fixed assets

2,983,553

3,101,251

Deferred charges

5,699

5,147

Total assets¥4,899,705¥5,038,117

Fixed assets:
Property and equipment, net:

Intangible assets, net:

Total intangible assets
Investments and other assets:

19

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the six-month period ended September 30, 2012

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

As of
September 30, 2012

AmountAmountLIABILITIES AND EQUITYCurrent liabilities:
Accounts payable - trade¥190,532¥190,347

Short-term borrowings

403,167

453,140

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

144,988

190,552

835,053591,218

Income taxes payable

125,116

140,838

Current portion of lease obligations

152,682

173,484

Other current liabilities

72,184

68,285

Total current liabilities

1,923,725

1,807,866

Corporate bonds

459,900

414,900

Long-term debt

560,070628,643

Deferred tax liabilities

20,37018,667

Liability for retirement benefits

14,953

14,785

Allowance for point mileage

32,074

28,610

Lease obligations

347,699

488,493

Other liabilities

105,272

115,367

Total long-term liabilities

1,540,339

1,709,468

Total liabilities

3,464,065

3,517,335

Common stock

213,797

221,020

Additional paid-in capital

236,562

192,558

Retained earnings
Less:
Treasury stock
Total shareholders’ equity

530,534

655,867(22,947)(22,873)

957,947

1,046,573

Unrealized gain on available-for-sale securities

10,566

210

(993)

(823)

Foreign currency translation adjustments(30,826)(39,329)

Total valuation and translation adjustments(21,253)(39,942)

898

921

Minority interests

498,047

513,228

Total equity

1,435,640

1,520,781

Total liabilities and equity¥4,899,705¥5,038,117

Long-term liabilities:

Equity:Deferred loss on derivatives under hedge accounting

Stock acquisition rights

20

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the six-month period ended September 30, 2012

(2) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income
For the six-month period ended September 30, 2011 and 2012
Consolidated Statements of Income(Millions of yen)Six-month period ended
September 30, 2012
April 1, 2012 to
September 30, 2012
AmountSix-month period ended
September 30, 2011
April 1, 2011 to
September 30, 2011
AmountNet sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating income¥1,535,647¥1,586,109

670,967

712,470864,679

873,639

491,456

470,877

373,223

402,762Interest income

1,264

654

Other non-operating income

5,504

5,936

6,768

6,591

40,74917,8391,221

18,16323,535

10,340Non-operating expenses

65,506

46,343

Ordinary income

314,485

363,010Gain on sale of investment securities

83,527

3,044

Dilution gain from changes in equity interest
Unrealized appreciation on valuation of investments andgain on sale of investments at subsidiaries in
the U.S., net
Other special income

17,158

3,984

2,044

-

-

322

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

102,730

7,351

8,920

8,521

-

1,323

234

1,851

Special loss
Income before income taxes and minority interests
Income taxes:

9,154

11,696

408,061

358,665

101,361

140,155

57,337

15,662

158,699

155,817249,361

202,847

32,10833,415¥217,252¥169,432

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

Current
Deferred
Total income taxes
Income before minority interests
Minority interests in net income
Net income

21SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the six-month period ended September 30, 2012

Consolidated Statements of Comprehensive Income(Millions of yen)Six-month period ended
September 30, 2011
April 1, 2011 to
September 30, 2011
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 loss

Six-month period ended
September 30, 2012
April 1, 2012 to
September 30, 2012
Amount249,361

202,847(37,136)(10,732)(12,939)170(3,185)(8,558)

226

(674)

(53,034)(19,794)

Comprehensive income

196,326

183,052

Comprehensive income attributable to:
Owners of the parent

166,373

150,743

29,95232,309Minority interests

22

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the six-month period ended September 30, 2012

For the three-month period ended September 30, 2011 and 2012
Consolidated Statements of Income(Millions of yen)Three-month period ended
September 30, 2011
July 1, 2011 to
September 30, 2011
AmountNet sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating income

Three-month period ended
September 30, 2012
July 1, 2012 to
September 30, 2012
Amount¥771,409¥819,207

329,627

371,964

441,782

447,243244,384

236,605

197,397

210,637

Interest income

704

426

Other non-operating income

2,802

3,188

3,506

3,614

18,341

8,795

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

358

17,663

18,9495,762

Non-operating expenses

37,64932,220Ordinary income

163,254

182,031

Gain on sale of investment securities

78,594

2,193

Dilution gain from changes in equity interest
Unrealized appreciation (loss) on valuation of investments
and gain on sale of investments at subsidiaries in
the U.S., net
Other special income

1,734

1,498

2,120

9

2

322

Special income
Valuation loss on investment securities
Other special losses

82,452

4,024

8,723

8,126

129

75

Special loss
Income before income taxes and minority interests
Income taxes:

8,853

8,201

236,854

177,853

73,40782,43625,091

258

98,49982,695

138,355

95,15815,893

16,387¥122,461¥78,771

Current
Deferred
Total income taxes
Income before minority interests
Minority interests in net income
Net income

23

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the six-month period ended September 30, 2012

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

Three-month period ended
September 30, 2012
July 1, 2012 to
September 30, 2012
Amount138,355

95,158(26,853)

1,448(16,343)

69

(951)

(3,828)(1,888)(8,960)(46,035)(11,270)

Comprehensive income

92,31983,887

Comprehensive income attributable to:
Owners of the parent

78,496

68,724

13,822

15,163

Minority interests

24

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the six-month period ended September 30, 2012

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

Six-month period ended
September 30, 2012

April 1, 2011 to
September 30, 2011

April 1, 2012 to
September 30, 2012

Cash flows from operating activities:
Income before income taxes and minority interests¥408,061¥358,665

Adjustments for:
Depreciation and amortization

128,561

157,485

Amortization of goodwill

31,31531,660Equity in losses of affiliated companies

1,221

18,163(17,119)(3,705)

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

8,920

8,521

(2,044)

1,323

Gain on sale of marketable and investment securities, net(83,514)(2,702)Foreign exchange gain, net

(158)

(298)

Interest and dividend income(3,115)(1,271)

Interest expense

40,74917,839Decrease in receivables - trade

79,69959,824

Decrease in payables - trade(45,098)(303)(6,774)(39,506)

540,703605,694

2,644

1,741

Interest paid

(40,107)(18,334)

Income taxes paid

(108,196)(115,750)

395,044473,351

Changes in operating assets and liabilities

Other, net
Sub-totalInterest and dividend received

Net cash provided by operating activities- Continued -25

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the six-month period ended September 30, 2012

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

Six-month period ended
September 30, 2012

April 1, 2011 to
September 30, 2011

April 1, 2012 to
September 30, 2012

Cash flows from investing activities:
Purchase of property and equipment, and intangibles¥(215,800)¥(272,890)

Purchase of marketable and investment securities
Proceeds from sale of marketable and investment securities
Acquisition of interests in subsidiaries newly consolidated,
net of cash acquired
Other, net(22,216)(57,246)

77,446

15,277(53)(2,038)793(9,136)

Net cash used in investing activities(159,829)(326,034)(Decrease) increase in short-term borrowings, net(124,122)

99,855Decrease in commercial paper, net(25,000)-

Proceeds from long-term debt

403,175

152,708

Repayment of long-term debt

(625,242)(134,043)

Proceeds from issuance of bonds

129,354

109,443

Redemption of bonds(113,500)(95,000)

226

522

Proceeds from issuance of preferred securities by a subsidiary

200,000-

Cash dividends paid

(5,377)(43,766)

Cash dividends paid to minority shareholders(16,912)(16,104)

Proceeds from sale and lease back of equipment newly acquired

92,494

167,091

Repayment of lease obligations(72,296)(93,191)-(200,444)

Other, net(34,367)(8,577)

Net cash used in financing activities(191,568)(61,506)(1,337)(1,507)42,30884,303

68

8

Cash flows from financing activities:

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 period(734)(1,784)

847,155

1,014,558

Cash and cash equivalents, end of the period¥888,797¥1,097,086

26

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

(5) Notes(Consolidated Statements of Income)
1. Gain on sale of investment securities
For the six-month period ended September 30, 2011 (from April 1 to September 30, 2011)
The gain on sale of investment securities for the current period is primarily attributable to a ¥76,430 million gain on sale of Yahoo!
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 toeffectively hedge the variability of cash flows associated with the future market price of the underlying securities.
During the six-month period ended September 30, 2011, the obligation under the forward contracts was settled at maturity byeffectively delivering the shares of Yahoo! Inc. (book basis of $142 million) to CITIBANK, N.A. The cash proceeds received
by the Company’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
the forward contracts.
As of September 30, 2010, the shares of Yahoo! Inc. were reclassified to “Marketable securities” under current assets from
“Investment securities and investments in unconsolidated subsidiaries and affiliated companies” under investment and otherassets. This was to coincide with the reclassification of the related obligation under current liabilities, of which the remaining
period until maturity was less than one year. Accordingly, the gain on sale from this transaction was recorded as “Gain on saleof investment securities.”
2. Unrealized appreciation (loss) on valuation of investments and gain (loss) on sale of investments at subsidiaries in the
United States of America, net
Certain subsidiaries of the Company in the United States of America qualify as investment companies under the provisions set
forth in Financial Services – Investment Companies of the FASB ASC 946 and account for investment securities in accordancewith ASC 946.
The net changes in the fair value of the investments are recorded as unrealized appreciation (loss) on valuation of investments
and gain (loss) on sale of investments at subsidiaries in the U.S., net and gain (loss) on sale of investments, computed based on
the acquisition cost, is also included in this account. The unrealized appreciation (loss) on valuation of investments and gain
(loss) on sale of investments included in unrealized appreciation (loss) on valuation of investments and gain (loss) on sale ofinvestments at subsidiaries in the U.S., net in the consolidated statements of income are as follows:
Six-month period ended
September 30, 2011
Unrealized appreciation (loss) on valuation of investment
at subsidiaries in the U.S., net
Gain (loss) on sale of investments
at subsidiaries in the U.S., net
Total

27

Six-month period ended
September 30, 2012

1,861

(722)

182

(601)

2,044 million yen(1,323)

million yen

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the six-month period ended September 30, 2012

(Consolidated Statements of Cash Flows)
1. Scope of purchase of property and equipment, and intangibles in the consolidated statements of cash flows“Purchase of property and equipment, and intangibles” are comprised of cash outflows from purchasing property and equipment,
and intangible assets (excluding goodwill) and long-term prepaid expenses.
2. Proceeds from sale of marketable and investment securities and repayment of long-term debt
For the six-month period ended September 30, 2011 (from April 1 to September 30, 2011)
As described in “1. 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 ofthe shares delivered and were recorded as “Proceeds from sale of marketable and investment securities”. The proceeds receivedof ¥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
the shares of Yahoo! Inc. that were remitted to CITIBANK, N.A. in full settlement of the obligation was recognized as a realized
gain on 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.”
3. Proceeds from issuance of preferred securities by a subsidiary
For the six-month period ended September 30, 2011 (from April 1 to September 30, 2011)
They are proceeds from the issuance of preferred securities with limited voting right (preferred securities which have the natureof a 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.
4. Proceeds from sale and lease back of equipment newly acquired
Once SOFTBANK MOBILE Corp. and others purchase telecommunications equipment for the purpose of assembly,
installation and inspection, SOFTBANK MOBILE Corp. and others sell the equipment to lease companies under sale and leaseback arrangements. The leased asset and lease obligation are recorded in the consolidated balance sheets.
The cash outflows from the purchase of the equipment from vendors are included in “Purchase of property and equipment, andintangibles” under cash flows from investing activities and the cash inflows from the sale of the equipment to lease companies
are included in “Proceeds from sale and lease back of equipment newly acquired” under cash flows from financing activities.
5. Payments for repurchase of minority interests and long-term debt
For the six-month period ended September 30, 2012 (from April 1 to September 30, 2012)
In April 2006, BB Mobile Corp issued class 1 preferred stock-series 1 and stock acquisition rights to Vodafone International
Holdings B.V. and obtained a subordinated loan from Vodafone Overseas Finance Limited as a series of financing transactions
for the 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 withthe related expenses associated with the acquisition (¥63 million in December 2010 and ¥444 million in April 2012) inDecember 2010 and in April 2012, respectively.

28

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the six-month period ended September 30, 2012(6) Segment Information
1. Net sales and segment profit or loss of reportable segments for the six-month period ended September 30, 2011
(Millions of yen)
Reportable segments
Other 1

Total

Reconciliations to

Amounts inconsolidated

consolidated

statement of income 2statement of income 3

MobileBroadband

Fixed-line

InternetCommunications

Infrastructure

Telecommunications

Culture¥1,017,191¥80,232¥141,721¥139,691¥1,378,837¥156,809¥1,535,647¥-¥1,535,647

3,745

7,029

36,354

1,781

48,91016,98065,890(65,890)-

Total

1,020,937

87,261

178,075

141,472

1,427,747

173,790

1,601,537(65,890)

1,535,647

Segment profit¥250,086¥19,658¥27,287¥75,168¥372,200¥7,514¥379,714¥(6,491)¥373,223

Subtotal

Net sales
Customers
Inter-segment

Notes:
1. The PC software and peripherals distribution business and Fukuoka SOFTBANK HAWKS related business are included in “Other.”
2. Amounts in the column “Reconciliations to consolidated statement of income” of ¥(6,491) million represent elimination of intersegment
transactions and expenses of the corporate division of the Company, which totaled ¥431 million and ¥(6,923) million, respectively.
3. Segment profit is adjusted with operating income in the consolidated statements of income.

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

Total

Reconciliations to

Amounts inconsolidated

consolidated

statement of income 2statement of income 3

MobileBroadband

Fixed-line

InternetCommunications

Infrastructure

Telecommunications

Culture¥1,045,294¥70,454¥149,973¥150,718¥1,416,441¥169,668¥1,586,109¥-¥1,586,109

3,151

11,90042,004

1,719

58,776

18,53277,308(77,308)-

Total

1,048,445

82,354

191,978

152,438

1,475,217

188,200

1,663,418(77,308)

1,586,109

Segment profit¥266,384¥19,536¥34,640¥80,878¥401,439¥7,411¥408,851¥(6,089)¥402,762

Subtotal

Net sales
Customers
Inter-segment

Notes:
1. The PC software and peripherals distribution business and Fukuoka SOFTBANK HAWKS related business are included in “Other.”
2. Amounts in the column “Reconciliations to consolidated statement of income” of ¥(6,089) million represent elimination of intersegment
transactions and expenses of the corporate division of the Company, which totaled ¥875 million and ¥(6,964) million, respectively.
3. Segment profit is adjusted with operating income in the consolidated statements of income.

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

29

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the six-month period ended September 30, 2012(8) Significant Subsequent Events
For the six-month period ended September 30, 2012 (from April 1 to September 30, 2012)
1. 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 USD 20.1 billion (the “transaction”) in Sprint, consisting ofapproximately USD 12.1 billion to be paid to Sprint shareholders and USD 8.0 billion of new capital to be used, amongst otherpurposes, 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 ata meeting of the Sprint shareholders, customary antitrust, Federal Communications Commission and other regulatory
approvals and the satisfaction or waiver of other closing conditions, including accuracy of representations and warranties.
The companies expect the closing of the transaction to occur in mid-2013. As a result of the transaction the Company will own
approximately 70% of the fully-diluted (as used herein, not giving effect to out-of-the-money options) shares of New Sprint (asdefined 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 USD 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, 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 USD 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 USD 5.25 per share into 16.4% of outstanding Sprintcommon shares on a post-issuance basis (subject to customary adjustments).

30

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the six-month period ended September 30, 2012[2] Merger
Following receipt of Sprint shareholder 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 USD 17.0
billion. Approximately USD 12.1 billion will be distributed to Sprint shareholders as merger consideration. Merger Sub will
merge with and 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 USD 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)USD 7.30 in cash or (ii) one share of New Sprint stock, subject to proration if shareholders in the aggregate elect morethan the total amount of cash or stock consideration, as applicable (which would result in the receipt of a mix of cash andstock).
(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
USD 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 USD 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 USD 600 million if the merger does not close because Sprint accepts asuperior offer by a third party.
(c) Sprint must pay up to USD 75 million of the Company’s expenses if Sprint’s shareholders do not approve the transaction
at their shareholder meeting.

31

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the six-month period ended September 30, 2012

[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 USD 4.9 billion of the USD 17.0 billion contribution by the Company, which, in combination
with the USD 3.1 billion purchase price for the Bond, represents a USD 8.0 billion dollar contribution to the New Sprintbalance 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[2] Number of shares to be acquired[3] Acquisition price[4] Number of shares held after transfer

0 shares(number of voting rights: 0)(voting rights holding ratio: 0.0%)
3,241,403,146 shares*
Total amount invested: approx.USD 20.1 billion
Advisory fees and others: to be determined
3,241,403,146 shares*(number of voting rights: 3,241,403,146 )(voting rights holding ratio: 70%)

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 to full exercise of the Warrant.

(4) Financing
The transaction is fully funded by cash at hand and a bridge financing facility arranged and underwritten by Mizuho Corporate
Bank, Ltd., Sumitomo Mitsui Banking Corporation, The Bank of Tokyo-Mitsubishi UFJ, Ltd. and Deutsche Bank AG, Tokyo Branch.
(5) Outline of Sprint[1] Name[2] Address

Sprint Nextel Corporation
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] Paid-in capital

USD 46,716 million（as of December 31, 2011）
November 15, 1938

[6] Date of foundation

32

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the six-month period ended September 30, 2012

2. eAccess Ltd. planned to be a wholly-owned subsidiary of the Company through share exchange
The Company and eAccess Ltd. (“eAccess”) passed a resolution regarding a share exchange (the “Share Exchange”) whereby theCompany will become the sole parent company of eAccess and eAccess will become a wholly-owned subsidiary of theCompany, at the Board of Directors’ meeting held on September 27, 2012 and at the Board of Directors’ meeting held on
October 1, 2012, respectively, and entered into the share exchange agreement (the “Agreement”) on October 1, 2012. In
addition, SOFTBANK MOBILE Corp., a consolidated subsidiary of the Company, and eAccess reached a framework agreementon business alliance on October 1, 2012.
(1) Purpose of the Share Exchange
The Group aims to establish a structure which will allow both companies to combine management resources effectively andefficiently, and accelerate the penetration of the mobile broad band service through making eAccess a wholly-owned
subsidiary of the Company.
(Effects of making eAccess a wholly-owned subsidiary)[1] Shared utilization of mobile communications network[2] Mutual collaboration on efficient operation of base station sites[3] Creation of synergies(2) Schedule of Share Exchange
September 27, 2012

Resolution at the Board of Directors’ meeting (the Company)

October 1, 2012

Resolution at the Board of Directors’ meeting (eAccess )October 1, 2012

Execution of the Agreement (the Company, eAccess )February 28, 2013 (tentative)

Effective date of the Share Exchange (date of business combination)(3) Summary of Share Exchange
The Company will become the sole parent company of eAccess and eAccess will become the wholly-owned subsidiary of
the Company upon the Share Exchange.
The Share Exchange is planned to be conducted as a simplified share exchange under Article 796, Paragraph 3, of theCompanies Act, which does not require approval of the general meeting of shareholders of the Company, while it requires
approval of the general meeting of shareholders of eAccess which is expected to be held around January 2013.
(4) Exchange ratio in Share Exchange and its calculation method[1] Exchange ratio in Share Exchange
Upon the Share Exchange, the Company will deliver to each shareholder of eAccess (other than the Company) who is recordedin the shareholder registry as of the point in time immediately preceding the acquisition of all of the issued shares of eAccess by
the Company through the Share Exchange, the number of the Company common shares calculated by multiplying the total
number of eAccess common shares held by the relevant shareholder, by the Exchange Rate (as defined below), in exchange for
eAccess shares held by the relevant shareholder; provided, however, that (i) with regard to the shareholders who exercised
appraisal rights attached to the eAccess shares held by such shareholders pursuant to Article 785 of the Companies Law, theCompany shares will be delivered to eAccess in place of such shareholders and (ii) if the number of shares that shall bedelivered to a shareholder includes any fraction less than one (1) share, the Company shall pay to such shareholder money
calculated in accordance with Article 234 of the Companies Law, with any fraction less than one (1) yen being rounded up to
the nearest yen.
The “Exchange Rate” shall mean 16.74, which is the ratio obtained by dividing 52,000 yen (that is considered as the appraisal
value of the common stock of eAccess) by 3,108 yen (the “Base Price”) (that is the average of the closing price of regular
trading of the common stock of the Company on the Tokyo Stock Exchange during the three (3) months prior to the execution
date of the Agreement, with any fraction less than one (1) yen being rounded up to the nearest yen).

33

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the six-month period ended September 30, 2012

Although the Company plans, in principle, to issue shares of common stock of the Company as consideration for the Stock
Exchange, the Company may use its treasury stock as the consideration, in whole or in part, at the time of the Share Exchange.
[2] Calculation method of the exchange ratio
The closing price of the common stock of eAccess as of September 28, 2012 is 15,070 yen. The Company and eAccessdetermined the appraisal value of the common stock of eAccess through mutual consultation, taking into comprehensive
consideration the current share prices of eAccess, as well as (i) the mobile communications network held by eAccess, (ii) the
customer base held by eAccess, and (iii) synergies that are expected to be generated together with SOFTBANK MOBILECorp.
To ensure the fairness and appropriateness upon calculation of the share exchange ratio, the Company and eAccess decided toseparately engage independent financial advisors to the financial analysis on the share exchange ratio. The Company
appointed Mizuho Securities Co., Ltd. and PLUTUS CONSULTING Co., Ltd. eAccess appointed Goldman Sachs Japan
Co., Ltd.
(5) Outline of eAccess[1] NameeAccess Ltd.

[2] Address

10-1,Toranomon 2-chome Minato-ku, Tokyo[3] Name and title of representative

Dr. Sachio Semmoto, Representative Director& Chairman[4] Business description

Broadband IP communication service[5] Paid-in capital[6] Date of foundation¥18,500 million（as of March 31,2012）
November 1, 1999

34