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 REPORTFor the fiscal year ended March 31, 2011
Tokyo, May 9, 2011

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, 2011

¥3,004,640

8.7¥629,163

35.1¥520,414

52.6¥189,712

96.2

Fiscal year ended
March 31, 2010

¥2,763,406

3.4¥465,871

29.7¥340,997

51.1¥96,716124.0

Note: Comprehensive income
Fiscal year ended March 31, 2011:
Fiscal year ended March 31, 2010:¥ 219,942 million (51.4%)¥ 145,265 million ( - %)Net income
per share－basic(yen)

Net income
per share－diluted(yen)

Fiscal year ended
March 31, 2011¥175.28

Fiscal year ended
March 31, 2010¥89.39Return on Equity(%)

Ordinary income /Total assets (%)

Operating income /Net sales (%)¥168.57

34.8

11.4

20.9

¥86.39

22.9

7.7

16.9

Note: Equity in earnings (losses) of affiliated companies
Fiscal year ended March 31, 2011:¥ 2,874 million
Fiscal year ended March 31, 2010:¥(3,616) million(2) Financial Condition(Millions of yen; amounts less than one million yen are omitted.)

Total assets

Total equity

Equity ratio (%)

Shareholders' equity
per share (yen)As of March 31, 2011

¥4,655,725¥879,618

13.3¥572.14

As of March 31, 2010

¥4,462,875¥963,971

10.5¥434.74

Note: Shareholders’equity (consolidated)
As of March 31, 2011:
As of March 31, 2010:¥619,252 million¥470,531 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, 2011

¥825,837¥(264,447)¥(397,728)¥847,155

Fiscal year ended
March 31, 2010

¥668,050¥(277,162)¥(159,563)¥687,681

2. Dividends
Total
Amount ofdividends

Dividends per share
Fiscal years ended First quarter Second quarter Third quarter
end
end
end
March 31

FY 2010
FY 2011
FY 2012(Forecasted)

Fiscal year
end

Total

Payout ratio(Consolidated)

Dividends
on equity(Consolidated)(Annual)

(yen)

(yen)

(yen)

(yen)

(yen)

(millions of yen)

%

%

-

0.00
0.00

-

5.00
5.00

5.00
5.00

5,411
5,411

5.6
2.9

1.3
1.0

-

-

-

-

-

-

Note: Dividend for the fiscal year ending March 31, 2012 is planned to be increased from ¥5 for the fiscal year ended March 31, 2011, however it is notdetermined at this point. The concrete amount of dividend will be announced promptly upon resolution.

3.

Forecasts on the consolidated operation results for the fiscal year ending in March 2012 (April 1, 2011 – March 31, 2012)
The SOFTBANK Group is forecasting an increase in revenue and profit, however it is difficult to disclose numerical earnings
forecasts. This is because the customer acquisition initiatives need to be planned and adjusted flexibly according tocircumstances involving numerous unconfirmed elements which could impact revenue and profit. On the other hand anincrease in consolidated CAPEX (acceptance basis) has been resolved up to approximately ¥500.0 billion. To improvedisclosure of information for shareholders and investors, the earnings forecasts will be disclosed when deemed to be reasonable.

4. Others(1) Significant Changes in Scope of Consolidation (Changes in Scope of Consolidation of Specified Subsidiaries):No(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: Yes[2] Changes other than those in [1]: No(3) Number of shares issued (Common stock)[1] Number of shares issued (including treasury stock):
As of March 31, 2011:
As of March 31, 2010:

1,082,530,408 shares
1,082,503,878 shares[2] Number of treasury stock:
As of March 31, 2011:
As of March 31, 2010:

180,503 shares
174,775 shares[3] Weighted average number of common stock:
As of March 31, 2011:
As of March 31, 2010:

1,082,345,444 shares
1,081,990,217 shares

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the fiscal year ended March 31, 2011

[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

2.

Operating income

Ordinary income (loss)

Net income (loss)

Amount%Amount%Amount%Amount%Fiscal year ended
March 31, 2011¥35,161172.6¥23,296903.0¥24,653-¥(2,296)-

Fiscal year ended
March 31, 2010

¥12,900

4.5¥2,322(24.2)¥(20,581)-¥33,095-

Net income (loss)
per share－basic(yen)

Net income (loss)
per share－diluted(yen)

Fiscal year ended
March 31, 2011¥(2.12)¥-

Fiscal year ended
March 31, 2010¥30.59¥ 30.13

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, 2011

¥2,185,506¥419,752

19.2¥387.72

As of March 31, 2010

¥1,491,232¥435,211

29.2¥402.11

Note: Shareholders’equity (non-consolidated)
As of March 31, 2011:
As of March 31, 2010:¥419,652 million¥435,211 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 12 “1. Results of Operations(1) Analysis of Consolidated Results of Operations 3. Earnings Forecasts” for details of forecasts on the consolidated operating results.

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the fiscal year ended March 31, 2011

(Appendix)
Content
1.

Results of Operations(1) Analysis of Consolidated Results of Operations
1. Consolidated Results of Operations
2. Results by Business Segment（Reference 1: Principal Operational Data）（Reference 2: Capital Expenditure and Depreciation）
3. Earnings Forecasts(2) Analysis of Financial Position
1. Assets, Liabilities and Equity
2. Cash Flows（Reference: Major Financing Activities）(3) Fundamental Policy for Distribution of Profit, and Dividends for Current andFollowing Years

p. 2
p. 2
p. 2
p. 5
p. 9
p.11
p.12
p.13
p.13
p.16
p.18
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) Changes in Basis of Presentation of Consolidated Financial Statements(8) Additional information(9) Notes(Consolidated Balance Sheets)(Consolidated Statements of Income)(Consolidated Statements of Comprehensive Income)(Consolidated Statements of Changes in Equity)(Consolidated Statements of Cash Flows)(Leases)(Financial Instruments)(Investment in Debt and Equity Securities)(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.37
p.37
p.38
p.38
p.42
p.44
p.45
p.47
p.49
p.51
p.59
p.62
p.65
p.66
p.68
P.69

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the fiscal year ended March 31, 2011

Qualitative Information/Financial Statements
1.

Results of Operations(1) Analysis of Consolidated Results of Operations
1. Consolidated Results of Operations<Overview of results for the fiscal year from April 1, 2010 to March 31, 2011>
For the fiscal year from April 1, 2010 to March 31, 2011 (hereafter “this fiscal year”), the SOFTBANK Group(hereafter “the Group”) achieved consolidated net sales of ¥3,004,640 million, a ¥241,234 million (8.7%) increase
compared with the same period of the previous fiscal year (April 1, 2009 to March 31, 2010, hereafter “year onyear”), with a ¥163,291 million (35.1%) increase in operating income to ¥629,163 million.

This consolidated

revenue and profit growth was driven by strong performance at the Mobile Communications segment. Ordinary
income grew ¥179,416 million (52.6%) to ¥520,414 million. Net income rose ¥92,996 million (96.2%) to ¥189,712
million.
Note:
Definition of terms: as used in this consolidated financial report for the fiscal year ended March 31, 2011, references to “theCompany,” “the Group” and “the SOFTBANK Group” are to SOFTBANK CORP. and its consolidated subsidiaries except as thecontext otherwise requires or indicates.

The main factors affecting earnings for this fiscal year were as follows:(a) Net Sales
Net sales totaled ¥3,004,640 million, for a ¥241,234 million (8.7%) year-on-year increase. This was mainly the
result of strong growth in the number of mobile phone subscribers, combined with a rise in ARPU1 and the numberof mobile handsets shipped,2 in the Mobile Communications segment.
Notes:
1. Average Revenue Per User.
2. Handsets shipped: handsets shipped (sold) to agents.

(b) Cost of Sales
Cost of sales rose ¥47,045 million (3.5%) year on year to ¥1,373,617 million. This was mainly due to higher costof goods on the increase in the number of mobile handsets shipped, while depreciation and amortization expenses
relating to the 2G mobile phone service decreased due to termination of this service in March 2010, in the Mobile
Communications segment.

(c) Selling, General and Administrative Expenses
Selling, general and administrative expenses grew ¥30,896 million (3.2%) year on year to ¥1,001,859 million.
This was mainly because of increased sales commissions3 associated with the increase in the number of mobile
handsets sold4 in the Mobile Communications segment.
Notes:
3. Sales commissions paid to sales agents per new subscription and upgrade purchase.
4. Handsets sold: total of new subscriptions and handset upgrades.

2

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the fiscal year ended March 31, 2011(d) Operating Income
As a result, operating income totaled ¥629,163 million, for a ¥163,291 million (35.1%) year-on-year increase.
The operating margin rose 4.1 percentage points year on year, to 20.9%.

(e) Non-operating Income / Expenses
Non-operating income totaled ¥17,320 million, a ¥8,001 million year-on-year increase. Non-operating expenses
stood at ¥126,069 million, a ¥8,122 million year-on-year decrease.

The primary item of non-operating expenses

was interest expense, which totaled ¥104,019 million.

(f) Ordinary Income
Ordinary income therefore totaled ¥520,414 million, for a ¥179,416 million (52.6%) year-on-year increase.

(g) Special Income
Special income totaled ¥14,252 million, the main components were a ¥6,623 million gain on sale of investment
securities and a ¥4,187 million gain on repurchase of minority interests and long-term debt.
Gain on repurchase of minority interests and long-term debt was the result of an acquisition made by the Company
during this fiscal year, amounting to a total of ¥412,500 million.

This acquisition was of all class 1 preferredstock series 1 and stock acquisition rights issued by BB Mobile Corp. (hereafter “BB Mobile”) to Vodafone
International Holdings B.V. and the entire amount of the principal and accrued interest of a long-term loan
receivable, which was recorded as long-term debt in the Company’s consolidated balance sheets, fromSOFTBANK MOBILE Corp. (hereafter “SOFTBANK MOBILE”) to Vodafone Overseas Finance Limited.

(h) Special Loss
Special loss was ¥54,053 million, which included a ¥14,416 million loss on disaster, a ¥9,521 million valuation loss
on option, a ¥8,739 million valuation loss on investment securities, and a ¥7,099 million loss on adjustment forchanges of the accounting standard for asset retirement obligations.
Loss on disaster was recorded in connection with the Great East Japan Earthquake that occurred in March 2011.
Refer to page 43, “4. Consolidated Financial Statements – (9) Notes to Consolidated Statements of Income – 4.
Loss on disaster” for details.
The Company has entered into agreements containing a put option5 and a call option6 for shares of Wireless City
Planning Inc. (hereafter “WCP”), which is the Company’s affiliate under equity method, with its shareholders otherthan the Company.

These options are measured at fair value and the valuation loss is recorded as described above.

Notes:
5. Put option: the right of the other shareholders of WCP to sell the WCP shares to the Company.
6. Call option: the Company’s right to buy the WCP shares from the other shareholders of WCP.

3

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the fiscal year ended March 31, 2011(i) Income Taxes
Provisions for current income taxes were ¥173,509 million, provisions for deferred income taxes were ¥32,047
million, and additional tax expenses of ¥27,391 million were recorded as income taxes – correction. The income
taxes – correction includes additional income taxes paid by Yahoo Japan Corporation (hereafter “Yahoo Japan”) in
response to a correction and ruling notice which it received from the Tokyo Regional Taxation Bureau.

Refer topage 43, “4. Consolidated Financial Statements – (9) Notes to Consolidated Statements of Income – 6. Income
taxes – corrections” for details.

(j) Minority Interests in Net Income
Minority interests in net income totaled ¥57,950 million. This was mainly the portion of net income recorded at
Yahoo Japan and SB Asia Infrastructure Fund L.P., a consolidated subsidiary from this fiscal year, attributable tothe shareholders other than the Company.

(k) Net Income
As a result of the above, net income totaled ¥189,712 million, for a ¥92,996 million (96.2%) year-on-year increase.

(l) Comprehensive Income
Comprehensive income was ¥219,942 million. Of this, comprehensive income attributable to owners of theparent was ¥159,777 million and comprehensive income attributable to minority interests came to ¥60,165 million.

4

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the fiscal year ended March 31, 20112.

Results by Business Segment

The “Accounting Standard for Disclosures about Segments of an Enterprise and Related Information” (ASBJ
Statement No.17, March 27, 2009) and the “Guidance on the Accounting Standard for Disclosures about Segments ofan Enterprise and Related Information” (ASBJ Guidance No.20, May 21, 2008) are being applied from this fiscal
year.
Net sales and operating income for the previous fiscal year are also shown based on the new standard.

Note:
Principal operational data is shown on pages 9-10 “(Reference 1: Principal Operational Data).”(a) Mobile Communications(Millions of yen)

Fiscal Year Ended
March 31, 2010

Fiscal Year Ended
March 31, 2011

Net sales

1,701,414

1,944,551

243,136

14.3％

Operating income

260,895

402,411

141,51654.2％

7

・ 3,532,100 cumulative net subscriber additions
・ ARPU

8(Reference)
Change(Reference)
Change %for this fiscal year

for this fiscal year was ¥4,210, a ¥140 year-on-year increase. Out of this, data ARPU amounted

to ¥2,310, a ¥290 year-on-year increase
Notes:
7. The number of net subscriber additions includes prepaid mobile phones and communication module service subscribers.
Net communication module service subscriber additions for this fiscal year totaled 771,100.
8. Average Revenue Per User (rounded to the nearest ¥10).
Revenue and number of mobile phone subscribers include prepaid mobile phones and communication module service
subscribers.
For the Mobile Communications segment, the term “ARPU” used alone indicates the total of the basic monthly charge plus
voice ARPU plus data ARPU.

< Overview of Operations >The segment’s net sales increased by ¥243,136 million (14.3%) year on year to ¥1,944,551 million.

The revenue

growth was driven by continued strong upward trend of mobile phone subscribers combined with increases in
ARPU and the number of mobile handsets shipped. Operating income increased by ¥141,516 million (54.2%)
year on year to ¥402,411 million.

5

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the fiscal year ended March 31, 2011

<Number of Mobile Phone Subscribers>
Net subscriber additions (new subscribers minus cancellations) for this fiscal year totaled 3,532,100. This net
increase was primarily the result of strong sales of iPhone.9 As a result, the cumulative number of subscribers10 at
the end of this fiscal year stood at 25,408,700, raising SOFTBANK MOBILE’s cumulative subscriber share by 1.8of a percentage point year on year, to 21.3%.11
Notes:
9. iPhone is a trademark of Apple Inc.
The iPhone trademark is used under license from Aiphone K.K.
10. The number of cumulative subscribers includes prepaid mobile phones and communication module service subscribers.
The cumulative number of communication module service subscribers at the end of this fiscal year was 1,308,600.
11. Calculated by the Company based on Telecommunications Carriers Association statistical data.

< Number of Mobile Handsets Sold/ Shipped >The number of mobile handsets sold and handsets shipped for this fiscal year increased by 1,108,000 year on year to
10,242,000 and 1,199,000 year on year to 10,016,000, respectively. These increases were mainly the result of afavorable sales and shipment trend of mobile handsets especially iPhone and communication modules.

<ARPU>
ARPU for this fiscal year rose ¥140 year on year to ¥4,210. Out of this, the sum of the basic monthly charge andvoice ARPU declined ¥160 year on year to ¥1,890, reflecting an increase in devices which do not have voicecommunication functionality, and revised access charges between carriers.

On the other hand, data ARPU rose¥290 year on year to ¥2,310. This was mainly the result of an increase in the number of data-intensive iPhone
subscribers, combined with the after-effect of the termination of the non-data-intensive 2G service in March 2010.

<Churn Rate and Upgrade Rate>
The churn rate12 for this fiscal year was 0.98%, which was 0.39 of a percentage point lower year on year. Thiswas primarily because the churn rate was no longer inflated by the termination of the 2G service, and there was a
decline in the churn rate of customers who have completed their installment handset payments.
The upgrade rate12 for this fiscal year was 1.40%, which was 0.31 of a percentage point lower year on year. The
upgrade rate was no longer inflated by upgrades from 2G to 3G, in association with the termination of the 2G
service completed in March 2010, while the number of upgrades to iPhone 4 increased.
Note:
12. Calculated with prepaid mobile phones and communication module service subscribers included in the number ofsubscribers, churn and upgrades, respectively.

<Average Acquisition Cost per Subscriber>
The average acquisition cost per subscriber13 for this fiscal year declined ¥3,600 year on year to ¥36,900. Thiswas primarily because of the increase in the number of mobile handsets shipped, especially for those handsets
without voice communication functionality whose acquisition cost per subscriber is lower.
Note:
13. Average commission paid to sales agents per new subscription.
New subscriptions include prepaid mobile phones and communication modules.

6

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the fiscal year ended March 31, 2011(b) Broadband Infrastructure(Millions of yen)

Fiscal Year Ended
March 31, 2010

Fiscal Year Ended
March 31, 2011

(Reference)
Change(Reference)
Change %Net sales

202,127

190,055(12,072)(6.0%)

Operating income

48,39943,154(5,245)(10.8%)<Overview of Operations>
The segment’s net sales decreased by ¥12,072 million (6.0%) year on year to ¥190,055 million.

This was mainly

because of the continued decreasing trend in revenue, on a decline in the number of charged lines14 for the ADSL
service. Operating income decreased by ¥5,245 million (10.8%) year on year to ¥43,154 million.

This wasprimarily due to a decrease in net sales, and an increase in sales-related expenses led by customer acquisition forYahoo! BB hikari with FLET'S.15
Net subscriber additions for Yahoo! BB hikari with FLET'S for this fiscal year totaled 695,000, bringing the
cumulative number of contracts at the end of this fiscal year to 932,000.

Combined with installed lines16 for the

ADSL service, this brought the total number of users to 4,082,000.
Notes:
14. Number of installed lines excluding customers whose basic monthly charge is free under promotion campaigns or otherpromotional initiatives.
15. 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.
16. Number of lines for which connection construction for ADSL line at central office of NTT East or NTT West is complete.

(c) Fixed-line Telecommunications(Millions of yen)

Fiscal Year Ended
March 31, 2010

Fiscal Year Ended
March 31, 2011

(Reference)
Change(Reference)
Change %Net sales

348,692

356,561

7,869

2.3％

Operating income

23,06538,006

14,941

64.8％<Overview of Operations>
The segment’s net sales increased by ¥7,869 million (2.3%) year on year to ¥356,561 million. Inter-segment sales
increased due to network provision to the Group telecommunication companies such as SOFTBANK MOBILE,
and contributed to the overall segment’s revenue growth. On the other hand, net sales to third-parties decreased,primarily as a result of the continued decrease in revenue from relay connection voice services such as MYLINE,and despite an increase in revenue from the OTOKU Line, a direct connection voice service.
Operating income increased by ¥14,941 million (64.8%) to ¥38,006 million. This was mainly due to an increasein net sales, combined with a decrease in lease expenses on equipment for the OTOKU Line service.

7

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the fiscal year ended March 31, 2011(d) Internet Culture(Millions of yen)

Fiscal Year Ended
March 31, 2010

Fiscal Year Ended
March 31, 2011

(Reference)
Change(Reference)
Change %Net sales

270,755

283,615

12,860

4.7％

Operating income

136,585

150,305

13,71910.0％<Overview of Operations>
The segment’s net sales increased by ¥12,860 million (4.7%) year on year to ¥283,615 million.

This was mainly

due to revenue growth at Yahoo Japan on an increase in listing and display advertising. Operating income
increased by ¥13,719 million (10.0%) year on year to ¥150,305 million. This was primarily a result of the growthin net sales, in addition to a decrease in communications expenses in connection with the improved operational
efficiency as a result of direct ownership of data centers.

8

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the fiscal year ended March 31, 2011

(Reference 1: Principal Operational Data）(a) Mobile Communications
SoftBank mobile phones
Fiscal Year Ended March 31, 2010
Q1

Q2

Q3

Fiscal Year Ended March 31, 2011

Q4

Full Year

Q1

Q2

Q3

Full
Year

Q4

(Thousands)

Net additions1

323.3

360.7

350.3

209.4

1,243.7

696.6

901.0

925.7

1,008.8

3,532.1(Postpaid)

359.5

394.9

383.3

506.8

1,644.5

645.3

833.6

865.4

975.3

3,319.6(Prepaid)
Market share2(%)
Cumulative
subscribers1
（3G）
（2G）
Market share2(%)(36.2)(34.2)(33.0)(297.4)(400.8)

51.3

67.4

60.3

33.5

212.5

32.3

31.5

35.6

13.4

26.5

45.4

53.5

55.8

40.8

48.0

20,956.2
19,455.0
1,501.2

21,316.9
20,237.7
1,079.2

21,667.2
20,885.4
781.8

21,876.6
21,876.6-

22,573.2
22,573.2-

23,474.2
23,474.2-

24,399.9
24,399.9
-

19.3

19.4

19.6

19.5

19.9

20.3

20.8

25,408.7
25,408.7
21.3(Thousands)

Number ofhandsets sold3

2,059

2,300

2,078

2,697

9,134

2,162

2,712

2,605

2,763

10,242

Number ofhandsets
shipped4

2,001

2,101

2,215

2,500

8,817

2,051

2,687

2,736

2,542

10,016(Yen per month)

ARPU5(Basic monthly
charge + voice)

4,030

4,150

4,200

3,890

4,070

4,290

4,300

4,310

3,940

4,210

2,150

2,160

2,150

1,750

2,050

2,030

2,020

1,980

1,570

1,890

(Data)

1,880

1,990

2,060

2,140

2,020

2,250

2,290

2,330

2,370

2,310
(Yen)

Averageacquisition cost
per subscriber6

50,10035,90037,40040,20040,50037,20037,50037,80035,40036,900(% per month)

Churn rate7(3G postpaid)

1.05

1.24

1.16

2.01

1.37

1.02

0.96

0.91

1.02

0.98

0.87

1.07

0.99

1.28

1.06

0.99

0.92

0.86

0.98

0.94

7

1.78
1.71
1.18
1.67
1.43
1.33
1.40
Upgrade rate
1.73
1.81
1.53
Notes:
1. Includes the number of prepaid mobile phones and communication module service subscribers.
2. Calculated by the Company based on Telecommunications Carriers Association statistical data.
3. Handsets sold: total of new subscriptions and handset upgrades.
4. Handsets shipped: handsets shipped (sold) to agents.
5. Average Revenue Per User (rounded to the nearest ¥10).
Revenue and number of mobile phone subscribers include prepaid mobile phones and communication modules.
For the Mobile Communications segment, the term “ARPU” used alone indicates the total of the basic monthly charge plus
voice ARPU plus data ARPU.
6. Average commissions paid to sales agents per new subscription.
New subscriptions include prepaid mobile phones and communication modules.
7. Calculated with prepaid mobile phones and communication module service subscribers included in the number ofsubscribers, churn and upgrades, respectively.

9

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the fiscal year ended March 31, 2011(b) Broadband Infrastructure
Yahoo! BB ADSL

(Thousands)

Fiscal Year Ended March 31, 2010
Q1

Q2

Q3

Installed lines8

4,158

4,040

3,908

9

3,769

3,657

3,533

Charged lines

Q4

Fiscal Year Ended March 31, 2011
Full Year

Q1

Q2

Q3

Q4

Full Year

3,769

3,609

3,457

3,291

3,150

3,389

3,221

3,066

2,903

2,752
(Yen per month)

Average user
payment per
charged line10

4,260

4,260

4,250

4,200

4,210

4,200

4,160

4,120
(% per month)

11

2.26
2.32
2.47
2.43
2.37
Churn rate
2.12
1.80
1.96
2.20
2.02
Notes:
8. Number of lines for which connection construction for ADSL line at central office of NTT East or NTT West is complete.
9. Number of installed lines excluding customers whose basic monthly charge is free under campaigns or other promotional
initiatives.
10. Rounded to the nearest ¥10.
11. Average ratio of customer lines with a history of payment, for which a cancellation application has been filed during therelevant period.

(c) Fixed-line TelecommunicationsOTOKU Line

(Thousands)

Fiscal Year Ended March 31, 2010
Q1

Q2

Q3

1,631

1,652

1,657

Lines

Q4

Fiscal Year Ended March 31, 2011
Full Year
1,669

Q1

Q2

Q3

1,668

1,667

1,662

Full
Year

Q4

1,671
(Yen per month)

12

ARPU
6,390
6,280
6,450
6,830
6,600
6,570
Note:
12. Average Revenue Per User: average revenue per line (rounded to the nearest ¥10).

6,610

6,930

(d) Internet Culture(Millions)Fiscal Year Ended March 31, 2010
Q1

Q2

Q3

Q4

46,44546,37842,779

229

189

20

20

Fiscal Year Ended March 31, 2011
Full Year

Full
Year

Q1

Q2

Q3

Q4

46,882

48,722

49,67146,75654,631

197

209

224

226

222

238

23

23

22

22

22

22

Yahoo! JAPAN
Total monthly
page views13
Uniquebrowsers14
Yahoo! Auctions
Average numberof total listed
items15

Notes:
13. Number of accesses to Yahoo! JAPAN Group websites during the last month of each quarter.
14. Number of browsers accessing a Yahoo! JAPAN service during the last month of each quarter.
15. Daily average number of items posted during the last month of each quarter.

10

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the fiscal year ended March 31, 2011

(Reference 2: Capital Expenditure and Depreciation)16(a) Capital Expenditure (acceptance basis)（Millions of yen）

Fiscal Year Ended March 31, 2010

Fiscal Year Ended March 31, 2011

Q1

Q2

Q3

Q4

Full Year

Q1

Q2

Q3

Q4

Full
Year

MobileCommunications

32,40839,14847,921

65,291

184,770

25,98765,387116,324

143,826

351,525

Broadband
Infrastructure

1,588

1,590

2,095

4,068

9,343

3,319

3,294

5,076

5,160

16,850

Fixed-line
Telecommunications

3,710

3,939

3,436

6,893

17,979

5,112

6,362

9,095

15,66536,236

Internet Culture

1,085

1,264

1,450

2,327

6,128

1,906

1,908

2,783

4,114

10,713

Others

1,571

915

678

1,528

4,693

1,216

1,559

1,148

1,340

5,265

Consolidated total

40,36446,85855,58280,109222,915

37,54278,513

134,428

170,107420,591(b) Depreciation (excluding amortization of goodwill)（Millions of yen）

Fiscal Year Ended March 31, 2010

Fiscal Year Ended March 31, 2011

Q1

Q2

Q3

Q4

Full Year

Q1

Q2

Q3

Q4

Full
Year

42,732

43,37744,65645,569176,337

36,636

37,63640,051

42,668

156,993

4,373

4,366

4,095

4,188

17,023

4,234

3,968

3,965

3,672

15,840

8,982

8,837

8,669

8,803

35,292

9,104

9,242

9,290

8,997

36,634

Internet Culture

2,366

2,441

2,492

2,563

9,864

2,169

2,307

2,412

2,533

9,422

Others

1,353

1,243

1,401

1,427

5,426

1,445

1,482

1,608

1,508

6,045

MobileCommunications
Broadband
Infrastructure
Fixed-line
Telecommunications

Consolidated total
59,80960,26661,31462,553 243,944
53,59054,63757,32959,379 224,937
Note:
16. Capital expenditure and Depreciation for this fiscal year ended March 31, 2010 are calculated based on the new standard.
Capital expenditure and Depreciation for the e-Commerce segment for the fiscal year ended March 31, 2010 are included
in “Others.”

11

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the fiscal year ended March 31, 20113.

Earnings Forecasts(a) Forecast for fiscal year ending March 2012 to fiscal year ending March 2014
The Group is forecasting continuous increasing trend in consolidated net sales and consolidated operating income
year on year for both the fiscal year ending March 2012 and March 2014, however the earnings growth rate is
expected to be below that of the fiscal year ended March 2011. This is due to enhanced initiatives on network
expansion and customer acquisition over the two fiscal years to come in the Group’s core business the Mobile
Communications segment, aimed at medium-term growth, which may increase the expense and decrease the profit.
The Group expects to finish these initiatives by the fiscal year ending March 2014, and profit to turn to a new
growth path.

(b) Forecast for fiscal year ending 2012
The Group is planning to focus on network expansion and customer acquisition in the Mobile Communications
segment.

The Group is forecasting an increase in revenue and profit, however it is difficult to disclose numericalearnings forecasts.

This is because the customer acquisition initiatives need to be planned and adjusted flexibly

according to circumstances and this involves numerous unconfirmed elements which could impact revenue andprofit.

On the other hand an increase in consolidated CAPEX (acceptance basis) has been resolved up to

approximately ¥500.0 billion.
To improve disclosure of information for shareholders and investors, the earnings forecast will be disclosed when
deemed to be reasonable.

Reference: trend (actual figures) of the Company’s consolidated CAPEX (acceptance base)・Fiscal year ended March 2009: ¥259.0 billion
・Fiscal year ended March 2010: ¥222.9 billion
・Fiscal year ended March 2011: ¥420.5 billion

12

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the fiscal year ended March 31, 2011

(2)

Analysis of Financial Position

1. Assets, Liabilities and Equity
Assets, liabilities and equity at the end of this fiscal year were as follows:(Millions of yen)

As ofMarch 31, 2010

As ofMarch 31, 2011

YoY

YoY %

Total assets

4,462,875

4,655,725

192,850

4.3 %Total liabilities

3,498,903

3,776,107

277,203

7.9%

Total equity

963,971879,618(84,353)(8.8%)(a) Current Assets
Current assets at the end of this fiscal year totaled ¥1,862,617 million, for a ¥168,176 million (9.9%) increase fromthe previous fiscal year-end.

The primary components of the change were as follows:・ Notes and accounts receivable–trade decreased by ¥158,776 million.

This was mainly because of sales of

installment sales receivables at SOFTBANK MOBILE.
・ Marketable securities increased by ¥73,757 million from the previous fiscal year-end.

This was mainly fromthe transfer of shares of Yahoo! Inc. that were previously recorded as investment securities under fixed assets, tocurrent assets.

In February 2004, one of the Company’s U.S. subsidiaries entered into a loan involving a

portion of the proceeds from a forward contract under which its Yahoo! Inc. shares are expected to be deliveredin August 2011.

Because the subsidiary intends to deliver these shares in accordance with the settlement of theforward contract beginning August 2011 or within one year, the corresponding shares of Yahoo! Inc. weretransferred to current assets.
・ Other current assets increased by ¥55,335 million from the previous fiscal year-end, primarily from increases inderivative assets and accrued revenue included in other current assets.

A derivative contract (“collartransaction”) was concluded with regard to the shares of Yahoo! Inc. to limit the risk from market pricefluctuations of those shares for this fiscal year until the repayment.

However, with the remaining period until

the repayment having become less than one year, the corresponding derivative assets were transferred to current
assets during this fiscal year.

(b) Fixed Assets
Fixed assets totaled ¥2,791,726 million at the end of this fiscal year, for a ¥25,243 million (0.9%) increase from theprevious fiscal year-end. The primary components of the change were as follows:・ Total property and equipment increased ¥162,744 million from the previous fiscal year-end, primarily on a

¥315,955 million increase from new acquisitions of telecommunications equipment.

The increase, reflecting

the adjustment for changes of accounting standard for asset retirement obligations as of April 1, 2010, amounted
to ¥10,595 million.
・ Investments and other assets decreased by ¥105,460 million from the previous fiscal year-end.

This was mainly

because of a ¥43,508 million decrease in deferred tax assets, ¥41,590 million decrease in other assets, and a

13

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the fiscal year ended March 31, 2011

¥29,591 million decrease in investment securities. Other assets decreased due to the transfer of derivative assets
related to the shares of Yahoo! Inc. to current assets.

The decrease in investment securities is attributed to thetransfer of shares of Yahoo! Inc. to current assets which outweighed additional investments in Renren inc.1 andinvestment in PPLive Corporation2 among others.
・ Total intangible assets decreased ¥32,041 million from the previous fiscal year-end.

This was mainly becauseof a ¥61,530 million decrease resulting from regular amortization of the goodwill recorded when the Company
acquired SOFTBANK MOBILE and SOFTBANK TELECOM Corp. (hereafter “SOFTBANK TELECOM”).
On the other hand, software increased by ¥39,957 million as a result of new acquisitions of telecommunications
equipment.
Notes:
1. Changed from Oak Pacific Interactive in December 2010.
2. Changed from Synacast Corporation in April 2011.

(c) Current Liabilities
Current liabilities at the end of this fiscal year totaled ¥1,644,407 million, for a ¥265,529 million (19.3%) increase
from the previous fiscal year-end.

The primary components of the change were as follows:・ Accounts payable-other and accrued expenses increased by ¥110,012 million from the previous fiscal year-end.

This was mainly the result of an increase of ¥177,038 million in equipment-related payables, while a decrease of¥75,000 million came from the payment of additional entrustment for debt assumption, at SOFTBANKMOBILE.
・ The current portion of

corporate bonds increased by ¥74,100 million from the previous fiscal year-end.

Transfers were made from corporate bonds under long-term liabilities in the amounts of ¥53,500 million for the
25th Unsecured Straight Corporate Bond, ¥60,000 million for the 27th Unsecured Straight Corporate Bond, and¥15,000 million for SOFTBANK TELECOM’s 2nd series Unsecured Straight Corporate Bond, as the redemption
dates came to be within one year. On the other hand, payments of ¥54,400 million in total were made for theredemptions of the 22nd Unsecured Straight Corporate Bond and the 24th Unsecured Straight Corporate Bond.
・ Accounts payable-trade increased by ¥34,701 million from the previous fiscal year-end.

This was mainly due toan increase in purchases of mobile phones for resale.
・ Short-term borrowings decreased by ¥27,010 million from the previous fiscal year-end.

This was mainly

because SOFTBANK MOBILE continued to repay borrowings procured via the securitization of installment
sales receivables.

On the other hand, there was an increase in the Company’s short-term borrowings, and theborrowings at one of the Company’s U.S. subsidiaries were transferred to current liabilities as the redemption
dates came to be within one year.
・ The balance of commercial paper at the end of this fiscal year totaled ¥25,000 million (recorded as ¥0 at theprevious fiscal year-end).

(d) Long-term Liabilities
Long-term liabilities totaled ¥2,131,699 million at the end of this fiscal year, for a ¥11,674 million (0.6%) increase
from the previous fiscal year-end.

The primary components of the change were as follows:・ Long-term borrowings decreased by ¥250,626 million.

14

This was mainly because of SOFTBANK MOBILE’s

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the fiscal year ended March 31, 2011

ongoing repayment of its SBM loan,3 and the elimination in consolidation of the long-term loan receivableacquired by the Company from Vodafone Overseas Finance Limited, which was long-term debt owed by
SOFTBANK MOBILE to Vodafone Overseas Finance Limited, and the long-term debt of SOFTBANKMOBILE (refer to page 3, “(1) Results of Operations – 1. Consolidated Results of Operations – (g) Special
Income”). In addition, long-term borrowings at the Company’s U.S. subsidiaries and SOFTBANK MOBILE
that came to be payable within one year were transferred to current liabilities. On the other hand, there was anincrease in the Company’s long-term borrowings.
・ Long-term accounts payable increased ¥217,600 million from the previous fiscal year-end.

The increase chiefly

represents the recording of a scheduled payment of ¥200,000 million as long-term accounts payable. This
amount is scheduled to be paid to Vodafone International Holdings B.V. and Vodafone Overseas Finance Limited(hereafter "the Vodafone Group") in April 2012, in relation to the transaction with the Vodafone Group which
was carried out in December 2010 (refer to page 3, "(1) Results of Operations – 1. Consolidated Results ofOperations – (g) Special Income").
・ Corporate bonds increased ¥58,866 million from the previous fiscal year-end.
stThis increase mainly reflects athtotal of ¥235,000 million from the issuance of the 31 to 35 Unsecured Straight Corporate Bond. On the other
hand, the transfers were made for corporate bonds from long-term to current liabilities in the amounts of ¥53,500
million for the 25th Unsecured Straight Corporate Bond, ¥60,000 million for the 27th Unsecured Straight
Corporate Bond, and ¥15,000 million for SOFTBANK TELECOM's 2nd series Unsecured Straight Corporate
Bond, as the redemption dates came to be within one year. Payments of ¥47,625 million were also made for theaccelerated redemption of Euro-denominated Senior Notes due 2013, “refer to (Reference: Major Financing
Activities)” on page 18 for the main items in this early redemption.
Note:
3. The funds procured for the acquisition of Vodafone K.K. were refinanced in November 2006 via a whole businesssecuritization program.

(e) Equity
Equity totaled ¥879,618 million at the end of this fiscal year, for a ¥84,353 million (8.8%) decline from theprevious fiscal year-end. While retained earnings increased ¥179,205 million, totaling ¥222,277 million at theend of this fiscal year, minority interests came to ¥259,661 million, for a decrease of ¥233,301 million.

This wasprimarily due to the elimination in consolidation of ¥300,000 million of minority interests caused by theCompany’s acquisition of class 1 preferred stock series 1 issued by BB Mobile to Vodafone International Holdings
B.V (refer to page 3, “(1) Results of Operations – 1. Consolidated Results of Operations – (g) Special Income”).
On the other hand, there were increases in minority interests of ¥41,346 million from the recording of earnings byYahoo Japan and ¥24,839 million from a change in the scope of consolidation of SB Asia Infrastructure Fund L.P.
from an equity method affiliate to a consolidated subsidiary.4
Note:
4. This change reflects the adoption of Accounting Standards Codification Topic (ASC) 810, Consolidations formerly SFAS
No.167, Amendments to FASB Interpretation No. 46 (R) (SFAS 167) applied at certain overseas subsidiaries of theCompany in the United States of America.

15

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the fiscal year ended March 31, 2011

2. Cash Flows
Cash flow activities during this fiscal year were as follows:
Cash and cash equivalents at the end of this fiscal year totaled ¥847,155 million, for a ¥159,473 million increase fromthe previous fiscal year-end.
(Millions of yen)

Fiscal year ended

Fiscal year ended

March 31, 2010

March 31, 2011

YoY

Cash flows from operating activities

668,050

825,837

157,786

Cash flows from investing activities(277,162)(264,447)

12,714(Reference) Free cash flow

390,888561,389

170,501

Cash flows from financing activities(159,563)(397,728)(238,165)(a) Cash Flows from Operating Activities
Net cash provided by operating activities totaled ¥825,837 million (compared with ¥668,050 million provided in
the previous fiscal year).
Income before income taxes and minority interests totaled ¥480,612 million and non-cash items were recorded as
positive. The main components of non-cash items are ¥224,937 million in depreciation and amortization and¥62,688 million in amortization of goodwill. Receivables–trade decreased (increase in cash flow) by ¥167,452
million mainly due to sales of installment sales receivables at SOFTBANK MOBILE.
In addition, income taxes paid of ¥186,162 million were recorded, for a ¥146,971 million year-on-year increase.
This was mainly because of increased income tax payments for BB Mobile’s income tax under consolidated tax
return and at Yahoo Japan, and includes ¥26,450 million of additional income taxes paid by Yahoo Japan in
response to a correction and ruling notice it received.

(b) Cash Flows from Investing Activities
Net cash used in investing activities was ¥264,447 million (compared with ¥277,162 million used in the previous
fiscal year).
Capital expenditures, mainly at telecommunications-related businesses, resulted in outlays of ¥208,553 million forproperty and equipment and intangibles. Purchases of marketable and investment securities resulted in ¥79,441
million in cash outlays.

As a result, free cash flow (the combined net cash flows from operating activities and investing activities) was apositive ¥561,389 million (compared with a positive ¥390,888 million in the previous fiscal year), for a
year-on-year increase of ¥170,501 million.

(c) Cash Flows from Financing Activities
Net cash used in financing activities was ¥397,728 million (compared with ¥159,563 million used in the previous
fiscal year).

16

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the fiscal year ended March 31, 2011

Outlays were recorded in the amounts of ¥459,165 million for repayments of long-term borrowings, ¥213,564
million for the repurchase of minority interests and long-term borrowings, ¥155,063 million for the repayment oflease obligations, ¥105,508 million for the redemption of corporate bonds, and ¥75,000 million as payment for
additional entrustment for debt assumption. The outlay for repurchase of minority interests and long-term debt
represents the portion of the transaction with the Vodafone Group (refer to page 3, “(1) Results of Operations – 1.
Consolidated Results of Operations – (g) Special Income”), carried out during this fiscal year, which was paid tothe Vodafone Group during this fiscal year in addition to acquisition-related expenses. On the other hand,
long-term borrowings raised ¥252,900 million and corporate bond issues generated ¥233,936 million, in addition to¥117,596 million recorded as proceeds from the sale and lease back of equipment newly acquired.

(d) Trends in Cash Flow-related Indicators
A summary of trends in cash flow related indicators is presented below.
Fiscal year Ended

Fiscal year Ended

Fiscal year Ended

March 31, 2009

March 31, 2010

March 31, 2011

Equity ratio

8.5 %

10.5 %

13.3%

Equity ratio (Market cap.)

30.9 %

55.9 %

77.2%

Debt repayment period

3.5 years

2.7 years

2.2 years

Interest coverage ratio

6.0

7.0

8.9

Notes:
1.

2.
3.
4.

5.

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.
EBITDA: operating income (loss) + depreciation and amortization (including amortization of goodwill), and loss on
disposal of fixed assets included in operating expenses.
Market capitalization is calculated based on the number of shares outstanding, net of treasury stock.
Interest-bearing debt: short-term borrowings + commercial paper + current portion of corporate bonds + corporate bonds +long-term borrowings. Lease obligations are excluded.
This also excludes the corporate bonds (WBS Class B2 Funding Notes, issued by J-WBS Funding K.K.) with a face valueof ¥27,000 million acquired by the Company during this fiscal year that were issued under the whole businesssecuritization scheme associated with the acquisition of Vodafone K.K.

Interest expense is the corresponding figure on the Consolidated Statements of Income

A summary of cash flow-related indicators excluding the Mobile Communications Segment is shown below.
Fiscal year Ended

Fiscal year Ended

Fiscal year Ended

March 31, 2009

March 31, 2010

March 31, 2011

Debt repayment period

3.1 years

3.0 years

3.5 years

Interest coverage ratio

10.2

9.8

11.7

17

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the fiscal year ended March 31, 2011

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

Company NameSOFTBANK CORP.

Details

Summary

31st Unsecured Straight Corporate
Bond

Issue date: June 2, 2010
Redemption date: May 31, 2013
Procured amount: ¥25,000 million
Interest rate: 1.17%/year
Use: redemption of bonds which will mature by theend of June 2011
Issue date: June 2, 2010
Redemption date: June 2, 2015
Procured amount: ¥25,000 million
Interest rate: 1.67%/year
Use: redemption of bonds which will mature by theend of June 2011
Issue date: September 17, 2010
Redemption date: September 17, 2013
Procured amount: ¥130,000 million
Interest rate: 1.24%/year
Use: redemption of bonds which will mature by theend of June 2011
Issue date: January 25, 2011
Redemption date: January 25, 2016
Procured amount: ¥45,000 million
Interest rate: 1.10%/year
Use: redemption of bonds which will mature by theend of June 2011 and acquisition of proffered stock
issued by a consolidated subsidiary
Issue date: January 25, 2011
Redemption date: January 25, 2018
Procured amount: ¥10,000 million
Interest rate: 1.66%/year
Use: redemption of bonds which will mature by theend of June 2011 and acquisition of proffered stock
issued by a consolidated subsidiary
Redemption date: April 26, 2010
Redeemed amount: ¥20,000 million

32nd Unsecured Straight Corporate
Bond

33rd Unsecured Straight Corporate
Bond(Fukuoka SoftBank HAWKS Bond)

34th Unsecured Straight Corporate
Bond

35th Unsecured Straight Corporate
Bond

Bond redemption

Securitization ofreceivables(recorded as
borrowings)
Repayment of
securitization ofreceivables
Increase or
decrease in debt
(excluding
securitization ofreceivables)
Capitalexpenditure byfinancial lease
Additional
entrustment for
debt assumption

SOFTBANK CORP.

SOFTBANK MOBILE Corp.

24th Unsecured Straight Corporate
Bond(Fukuoka SoftBank HAWKS Bond)
22nd Unsecured Straight Corporate
Bond
Euro-denominated Senior Notes Due
2013(redeemed before maturity)
Procurement of funds totaling ¥10,000
million accompanying securitizationof mobile handsets installment salesreceivables
Repayment of ¥179,910 million

SOFTBANK CORP.

Increase of ¥217,000 million

Mainly increase of long-term borrowings

SOFTBANK MOBILE Corp.

Decrease of ¥214,124 million

Repayment of funds raised via the wholebusiness securitization financing scheme

Yahoo Japan Corporation

Decrease of ¥10,000 million

SOFTBANK MOBILE Corp.
etc.

New capital expenditure via leases

Funds newly procured during this fiscal year:¥117,596 million

SOFTBANK MOBILE Corp.

Payment of ¥75,000 million

Bonds in scope:
Former Vodafone K.K. corporate bonds
3rd Unsecured Straight Corporate Bond ¥25,000 million(redeemed on August 19, 2010)
5th Unsecured Straight Corporate Bond ¥25,000 million(redeemed on August 25, 2010)
7th Unsecured Straight Corporate Bond ¥25,000 million(redeemed on September 22, 2010)

SOFTBANK MOBILE Corp.

18

Redemption date: September 14, 2010
Redeemed amount: ¥34,400 million
Redemption date: October 15, 2010
Redeemed amount: ¥47,269 million(€352 million)
Procurement date: June 29, 2010
Redemption method: monthly pass-through repayment
Use: capital expenditure and repayment of funds
procured via the whole business securitization program
Repayment of funds procured via securitization ofmobile handsets installment sales receivables

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the fiscal year ended March 31, 2011

Acquisition ofpreferred stocketc., issued by theCompany’s
consolidated
subsidiary andheld by the
Vodafone GroupSOFTBANK CORP.

Payment of ¥212,500 million(refer to page 3, “(1) Results ofOperations - 1. Consolidated Resultsof Operations - (g) Special Income”)

19

Acquisition cost: ¥412,500 million in total
Payment date:
December 10, 2010 ¥212,500 million
April 2012 (tentative) ¥200,000 million

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the fiscal year ended March 31, 2011

(3)

Fundamental Policy for Distribution of Profit, and Dividends for Current and Following Years

The Company strives to increase returns to shareholders by raising corporate value and has a fundamental policy ofreturning appropriate amounts of profit to shareholders and other stakeholders.

The Company’s policy regarding

dividends to shareholders is to balance the strengthening of the financial base by reducing interest-bearing debt while
maintaining a stable dividend over the medium- to long-term.
Based on this policy the dividend for this fiscal year is scheduled to be the same as the previous fiscal year at ¥5 pershare.
The Company intends to increase the dividend for the fiscal year ending March 2012 from ¥5 per share and increase it
further in the fiscal year ending March 2015.

The concrete amount of dividend will be announced promptly upon

resolution.

20

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the fiscal year ended March 31, 2011

2. The SOFTBANK GroupAs of March 31, 2011, the Group’s business segments were comprised of the following consolidated subsidiaries andequity method companies.

The segments’ main businesses were as follows.

WILLCOM, Inc. is in the process of reorganization under the Corporate Reorganization Act and the Company does
not have effective control over WILLCOM, Inc.

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.1)

Internet Culture

139Internet-based advertising operations, e-commerce site
operations such as Yahoo! Auctions and Yahoo! Shopping,membership services, etc.
(Core company: Yahoo Japan Corporation1)

96

63

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

117

73

Business Segments

Reportablesegments

Therefore, WILLCOM, Inc. is not treated as a subsidiary.

Others

Total

Main Business of Segment and Name of Business
Provision of mobile communication services and sale ofmobile phones 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.1 )Note:
1. 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 business segments.

［Listed Companies］
The Company’s five following consolidated subsidiaries were listed on domestic stock exchanges as of March 31,
2011:
Company NameYahoo Japan Corporation

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

21

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the fiscal year ended March 31, 2011

3. Management Policies(1) Basic Management Approach

1. Fundamental Management Policy
Since its establishment, the SOFTBANK Group has consistently operated under the fundamental management policyof "endeavoring to benefit society and the economy and to maximize enterprise value by fostering the sharing of
wisdom and knowledge gained through the IT revolution."

2. Next 30-Year Vision
As last year marked the 30th year since its founding, the Group announced “SOFTBANK’s Next 30-Year Vision.” Thevision is a statement of what the Group aims to achieve over the next 30 years, and what the Group aims to look like after
this period. Through its various businesses the Group will strive to achieve the stated goal of this vision: to be a groupthat provides the technologies and services most needed by people around the world.

(2) Medium- to Long-Term Strategies
1. Forming and Expanding a Strategic Synergy Group Focused on Asia
The information industry in which the Group's businesses operate sees a steady stream of new technologies andbusiness models. The industry's ups and downs will likely become more pronounced going forward. The Groupseeks to provide lifestyle-changing services on a continuous basis in this fluctuating environment.

The strategy theGroup has adopted to achieve this is to be flexible in implementing technologies or business models and to invest inor form joint ventures with companies that have the best technologies or business models at the time, eventuallyforming and expanding a “strategic synergy group” focused on Asia. Each company in the strategic synergy groupwill make decisions autonomously, enabling it to continue to grow while creating synergies with other groupcompanies.

2. Focus on Mobile Internet
Forecasts for trends in Japan five years from now suggest the number of smartphones shipped will have increased
almost five-fold, and that of tablet PC will have increased more than seven-fold.1

These trends point to aworld-wide shift toward using these mobile devices as a means for accessing the Internet, in preference to PCs.
The Group’s strategy is to develop its businesses focused on the domain of mobile internet, which will expand in linewith this change.
In line with this strategy, the Group will work to strengthen the network in the mobile communications business,
provide high speed telecommunications services, and enhance its lineup of smartphones and tablet PCs. It will also
provide a full array of mobile content including video, electronic books, and games.
Note:
1.

Mobile Computing Promotion Consortium forecast (November 26, 2010).
Comparison of the forecast for one year from April 2010 to March 2011 and from April 2015 to March 2016.

22

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the fiscal year ended March 31, 2011(3) Important Management Issues for the Company
1. Reduction of Net Interest-bearing Debt
The Group recognizes the importance of reducing its net interest-bearing debt,2 and has set a target of reducing its¥1,939,520 million of net interest-bearing debt as of the end of March 2009 by half over three years (as of the end of
March 2012), and to zero over six years (as of the end of March 2015). Net interest-bearing debt at the end of thisfiscal year was ¥1,209,635 million, down 37.6% from the end of March 2009.
To achieve this target, the Group plans to generate an aggregate total of at least ¥1 trillion in free cash flow3 over thethree years from the fiscal year ended March 2010 through the fiscal year ending March 2012, in order to obtainfunds to repay the interest-bearing debt. To generate the free cash flow, the Group will focus on improving
operating cash flow, mainly in its core telecommunications-related businesses.
Notes:
2. Net interest-bearing debt: interest-bearing debt minus cash position.
Interest-bearing debt: short-term borrowings + commercial paper + current portion of corporate bonds + corporate bonds +long-term debt. Lease obligations are excluded.
This 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 the Company during the previous fiscal year that were issued under the whole businesssecuritization financing scheme associated with the acquisition of Vodafone K.K.
Cash position: cash and cash deposits + marketable securities recorded as current assets (excludes Yahoo! Inc. shares held bya subsidiary of the Company in the United States of America).
3. Free cash flow: cash flows from operating activities + cash flows from investing activities.

2. Mobile Communications Enhancement
In relation to the mobile phone services provided by SOFTBANK MOBILE, the Group recognizes the need toenhance its network. In March 2010, SOFTBANK MOBILE announced the SoftBank Network Enhancement
Initiative, and in one year doubled the number of mobile phone base stations from around 60,000 at the end of April
2010, to 122,508 as of the end of March 2011.
To further increase service area and improve communications quality, the Group plans to increase the number of basestations to 140,000 by the end of September 2011. At the same time, the Group will continue efforts to improve theusers’ convenience by providing small base stations (femtocells) and Wi-Fi routers free of charge in users’ homes
and in stores.

3. Response to the Great East Japan Earthquake and Revision of BCP in Preparation for Disasters
The Great East Japan Earthquake of March 11, 2011 left some regions unable to use the Group’s telecommunication
services.

The Group is making every effort to restore its services and network as quickly as possible, as it

recognizes these services are important lifelines.
Regarding the mobile communications service, on the morning of March 12th, 2011, the day after the earthquake
occurred, 3,786 base stations were rendered inoperative.

The Group deployed vehicle-mounted base stations,

auxiliary telecommunications facilities, and other response measures and had restored the service area to nearly the
pre-disaster equivalent4 by April 14, 2011. At present the Group is working to restore the rest of the inoperative
base stations and continuing efforts to provide pre-disaster levels of communications quality across the entire service
area by the end of May 2011.

23

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the fiscal year ended March 31, 2011

Meanwhile, for fixed-line telecommunications service and broadband service, the Group had restored around 97% of
the total of around 178,0005 affected subscriber lines as of May 6, 2011.
Moving ahead, the Group will look at countermeasures to allow it to continue providing telecommunications services
even in the event of a major disaster, and for speeding recovery from service disruptions caused by damage.

It willalso review its business continuity plan to prepare for disasters of a larger scale than previously imagined.
Notes:
4. Excludes the exclusion zone around the Fukushima Nuclear power plant and areas with restricted access due to immense
earthquake and tsunami damages.
5. Total number of lines for SOFTBANK TELECOM fixed-line communication services and SOFTBANK BB broadband
service (Yahoo! BB service and SOFTBANK broadband service) including the number of lines in the exclusion zone aroundthe Fukushima Nuclear power plant.

24

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the fiscal year ended March 31, 2011

4. Consolidated Financial Statements(1) Consolidated Balance Sheets(Millions of yen)
As ofMarch 31, 2010

As ofMarch 31, 2011

AmountAmountASSETS
Current assets:
Cash and deposits
Notes and accounts receivable - tradeMarketable securities¥690,053¥861,657

816,550

657,774

4,342

78,099Merchandise and finished products

37,03049,887

Deferred tax assets

74,29090,907

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

106,733

162,068(34,559)(37,778)

1,694,440

1,862,617

Buildings and structures

68,182

74,867

Telecommunications equipment

706,283

840,839

Telecommunications service lines

72,983

68,856

Land

22,401

22,882

Construction in progress

34,63455,663

Other property and equipment

46,21850,339Total property and equipment

950,703

1,113,447

Goodwill

900,768

839,238

Software208,915

248,872

Other intangibles

42,702

32,233

1,152,386

1,120,345

370,027

340,436

152,654

109,145

164,950

123,360(24,238)
663,394
2,766,483(15,008)
557,933
2,791,726

1,951

1,381

¥4,462,875¥4,655,725

Fixed assets:
Property and equipment, net:

Intangible assets, net:

Total intangible assets
Investments and other assets:
Investment securities andinvestments in unconsolidated subsidiaries
and affiliated companies
Deferred tax 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 REPORTFor the fiscal year ended March 31, 2011

Consolidated Balance Sheets(Millions of yen)
As ofMarch 31, 2010

As ofMarch 31, 2011

AmountAmountLIABILITIES AND EQUITYCurrent liabilities:
Accounts payable - trade
Short-term borrowings¥158,942¥193,644

437,960

410,950-

25,00054,400128,500

451,408

561,421

Income taxes payable

100,483

115,355

Deferred tax liabilities

-

7,104

Current portion of lease obligations

109,768

131,305

Other current liabilities

65,914

71,125

Total current liabilities

1,378,878

1,644,407

Corporate bonds

448,523507,390

Long-term debt

Commercial paper
Current portion of corporate bonds
Accounts payable - otherand accrued expenses

Long-term liabilities:
1,281,586

1,030,959

Long-term accounts payable - other47,541

265,141

Deferred tax liabilities

30,482

26,582

Liability for retirement benefits

15,557

14,414

Allowance for point mileage

47,21541,947

Lease obligations

224,484

199,769

Other liabilities

24,63445,494

Total long-term liabilities

2,120,024

2,131,699

Total liabilities

3,498,903

3,776,107

Common stock

188,750

188,775

Additional paid-in capital

213,068

212,510Retained earnings

43,071

222,277

Less: Treasury stock

(225)

(240)

Total shareholders’ equity

444,665

623,321

Unrealized gain on available-for-sale securities

43,86434,920

Deferred gain on derivatives under hedge accounting

14,528

11,224Foreign currency translation adjustments(32,525)(50,213)

Total valuation and translation adjustments

25,866(4,068)476

703

Minority interests

492,963259,661

Total equity

963,971879,618¥4,462,875¥4,655,725

Equity:Stock acquisition rights

Total liabilities and equity

26

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the fiscal year ended March 31, 2011

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

Fiscal year ended
March 31, 2010
April 1, 2009 to
March 31, 2010
AmountNet sales
Cost of sales
Gross Profit
Selling, general and administrative expenses
Operating income
Interest income
Foreign exchange gain, net
Equity in earnings of affiliated companies
Gain on investments in partnership

Fiscal year ended
March 31, 2011
April 1, 2010 toMarch 31, 2011
Amount¥2,763,406¥3,004,640

1,326,571

1,373,617

1,436,834

1,631,022

970,9631,001,859

465,871

629,163

1,024

2,228

1,707

1,808

-

2,874

-

2,088

6,586

8,320

9,318

17,320111,152

104,019

3,616

-

1,529

-

17,89322,049134,192

126,069

340,997

520,414

Gain on sale of investment securities

4,758

6,623

Dilution gain from changes in equity interest
Gain on repurchase of minority interests andlong-term debt
Unrealized appreciation on valuation of investments andloss on sale of investments at subsidiaries in the U.S.,net
Other special income

1,407

2,879

-

4,187

-

263

489

298

Special income

6,655

14,252

Valuation loss on investment securities
Unrealized appreciation on valuation of investments andloss on sale of investments at subsidiaries in the U.S.,net
Loss on retirement of non current assets
Loss on disaster
Valuation loss on option
Loss on adjustment for changes of accounting standard for
asset retirement obligations
Other special losses
Special loss

5,167

8,739

303

-

48,786

6,542-

14,416

-

9,521

-

7,099

4,145

7,734

58,40354,053

289,249

480,612

117,876

173,509-

27,391

26,68332,047

144,559

232,949-

247,663

Other non-operating income
Non-operating income
Interest expense
Equity in losses of affiliated companies
Loss on investments in partnership
Other non-operating expenses
Non-operating expenses
Ordinary income

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

27

47,973

57,950¥96,716¥189,712

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the fiscal year ended March 31, 2011

Consolidated Statements of Comprehensive Income(Millions of yen)

Fiscal year ended
March 31, 2010
April 1, 2009 to
March 31, 2010
AmountFiscal year ended
March 31, 2011
April 1, 2010 toMarch 31, 2011
AmountIncome before minority interests
Other comprehensive income
Unrealized gain on available-for-sale securities
Deferred gain on derivatives under hedge accounting
Foreign currency translation adjustment
Share of other comprehensive income of associates
accounted for using equity method
Total other comprehensive income¥-¥247,663-(6,822)-(3,176)-(10,195)-(7,526)-(27,720)

Comprehensive income-

219,942Comprehensive income attributable toComprehensive income attributable to owners of
the parent
Comprehensive income attributable to minority interests-

159,777-

60,16528

29

Balance at March 31, 2010

Total changes in the year--

¥188,750

1,069

-

-

-

Purchase of treasury stock
Adjustments of retained earnings(accumulated deficit) due to change in scopeof the consolidation
Items other than changes in shareholders’equity, net¥213,068

1,069

-

-

-

-

-

1,069

¥211,999

Additional
paid-in
capital

Net income

1,069¥187,681

Commonstock¥43,071

94,341-327-

96,716(2,702)-¥(51,269)¥(225)

(11)

-

-

(11)

-

-

-

¥(214)

Retainedearnings(accumulated Treasury stock
deficit)

Shareholders’ equity

Cash dividends

Exercise of warrants

Changes of items during the year

Balance at April 1, 2009

Fiscal year from April 1, 2009 to March 31, 2010:(3)Consolidated Statements of Changes in Equity¥444,665

96,468

-

327

(11)

96,716(2,702)2,138¥348,197

Total¥43,864

12,53012,530

-

-

-

-

-

¥31,334¥ 14,528(10,589)(10,589)

-

-

-

-

-

¥ 25,117¥(32,525)(1,971)(1,971)

-

-

-

-

-

¥(30,554)

Unrealized gain Deferred gain on Foreign currency
on available-for- derivatives undertranslation
sale securities hedge accounting
adjustments

Valuation and translation adjustments¥25,866

(30)

(30)

-

-

-

-

-

¥25,897

Total

¥476

187

187

-

-

-

-

-

¥289

Stock acquisitionrights¥492,963

42,54842,548

-

-

-

-

-

¥450,414

Minority
interests¥963,971

139,173

42,705327(11)96,716(2,702)2,138¥824,798

Total equity(Millions of yen)

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the fiscal year ended March 31, 2011

30

Balance at March 31, 2011

Total changes in the year

-

(558)

-

-

¥212,510

(582)

-

24

-

-

¥188,775

-

-

-

-

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

Net income

24

-

-

24

¥213,068

Additional
paid-in
capital¥222,277

183,715

-

-

(585)

-

189,712(5,411)-(4,510)¥43,071Retainedearnings

Shareholders’ equity¥188,750

Commonstock

Cash dividends

Exercise of warrants

Changes of items during the year

Balance at April 1, 2010
Decrease in retained earnings due to adoptionof practical solution on unification of
accounting policies applied to associates
accounted for using the equity method

Fiscal year from April 1, 2010 to March 31, 2011:¥(240)

(15)

-

-

-

(15)

-

-

-

-

¥(225)

Treasury stock¥623,321

183,166

-

(582)

(585)

(15)

189,712(5,411)49(4,510)¥444,665

Total¥34,920(8,943)(8,943)

-

-

-

-

-

-

-

¥43,864¥ 11,224(3,303)(3,303)

-

-

-

-

-

-

-

¥ 14,528¥(50,213)(17,687)(17,687)

-

-

-

-

-

-

-

¥(32,525)

Unrealized gain Deferred gain on Foreign currency
on available-for- derivatives undertranslation
sale securities hedge accounting
adjustments

Valuation and translation adjustments¥(4,068)(29,935)(29,935)

-

-

-

-

-

-

-

¥25,866

Total

¥703

226

226

-

-

-

-

-

-

-

¥476

Stock acquisitionrights¥259,661(233,301)(233,301)

-

-

-

-

-

-

-

¥492,963

Minority
interests¥879,618(79,843)(263,010)

(582)

(585)

(15)

189,712(5,411)49(4,510)¥963,971

Total equity(Millions of yen)

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the fiscal year ended March 31, 2011

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the fiscal year ended March 31, 2011

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

Fiscal year ended
March 31, 2010

Fiscal year ended
March 31, 2011

April 1, 2009 to
March 31, 2010

April 1, 2010 toMarch 31, 2011

Cash flows from operating activities:
Income before income taxes and minority interests¥289,249¥480,612

Depreciation and amortization

243,944

224,937

Amortization of goodwill

61,07062,688Loss on retirement of non current assets

48,7866,542

Equity in losses (earnings) of affiliated companies

3,616(2,874)

Dilution gain from changes in equity interest, net(327)(2,045)

Valuation loss on investment securities
Unrealized appreciation on valuation of investments and loss onsale of investments at subsidiaries in the U.S., net

5,167

8,739

303

(263)

Gain on sale of marketable and investment securities, net(4,621)(5,972)Foreign exchange gain, net(1,818)(1,587)

Interest and dividend income(1,370)(3,856)

Interest expense

111,152

104,019

Decrease in receivables - trade

59,637

167,452(Decrease) increase in payables - trade(1,038)33,679(10,447)

30,735803,304

1,102,806

1,234

3,900

Interest paid

(97,297)(94,708)

Income taxes paid

(39,191)(186,162)

668,050

825,837

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 REPORTFor the fiscal year ended March 31, 2011

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

Fiscal year ended
March 31, 2010

Fiscal year ended
March 31, 2011

April 1, 2009 to
March 31, 2010

April 1, 2010 toMarch 31, 2011

Cash flows from investing activities:
Purchase of property and equipment, and intangibles¥ (223,818)¥ (208,553)(56,686)(79,441)

19,04031,492(20,880)

(701)

5,183

(7,243)(277,162)(264,447)(112,910)

20,129-25,000

Proceeds from long-term debt

337,929

252,900

Repayment of long-term debt

(516,051)(459,165)

Proceeds from issuance of bonds

183,433

233,936

Redemption of bonds(70,675)(105,508)

Exercise of warrants

2,138

41

Proceeds from issuance of shares to minority shareholders

1,493

1,684

Cash dividends paid

(2,678)(5,387)

Cash dividends paid to minority shareholders
Proceeds from sale and lease back of equipment newly acquired(4,618)(16,009)

135,941

117,596

Repayment of lease obligations(103,052)(155,063)

Payments for additional entrustment for debt assumption-(75,000)

Payments for repurchase of minority interests and long-tem debt-

(213,564)

Other, net(10,512)(19,316)

Net cash used in financing activities(159,563)(397,728)(606)(4,203)

230,718

159,457

126

1,919

(807)

(64)

-

(1,837)457,644687,681¥687,681¥847,155

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
Net cash used in investing activities
Cash flows from financing activities:(Decrease) increase in short-term borrowings, net
Increase in commercial paper, net

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
Decrease in cash and cash equivalents resulting from corporate
separation
Cash and cash equivalents, beginning of the year
Cash and cash equivalents, end of the year32

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the fiscal year ended March 31, 2011(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, 2011, SOFTBANK CORP. (the “Company”) consolidated 117 subsidiaries (together, the “Group”). 61
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>
12 companies
Significant changes:
SB Asia Infrastructure Fund L.P. and its 6 consolidated subsidiaries<Decrease>
4 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, 2011, the Company held 4 non-consolidated subsidiaries and 69 affiliates, all of which were accounted forunder the equity method. 57 non-consolidated subsidiaries and 23 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>
24 companies
Significant changes:
Synacast Corporation (Synacast Corporation has changed its name to PPLive Coproration at April 5, 2011.)
SB Asia Infrastructure Fund L.P.’s 12 affiliates under equity method
Wireless City Planning Inc.
USTREAM, Inc.
<Decrease>
15 companies
Significant changes:
SB Asia Infrastructure Fund L.P.
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
48
35
(same as the consolidated balance sheet date)July end
8
December end
2
21
January end
1
February end
2-

33

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the fiscal year ended March 31, 2011

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
Certain subsidiaries of the Company in the United States of America qualify as investment companies under theprovisions set forth in Financial Services – Investment Companies of the FASB Accounting Standards Codification
Topic 946 (ASC 946) and account for the investment securities in accordance with the ASC 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 and “as if capitalized” information is disclosed in the notes to the Company’s consolidated financial statements.
(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, SOFTBANK TELECOM, and certain other subsidiaries have defined benefit pension plans
for their 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 and SOFTBANK TELECOM amended the pension plans by suspending the defined benefit
pension plans at the end of March 2007 and March 2006, respectively, and implementing defined contribution pension
plans. The retirement benefits existed and calculated under the benefit pension plan were fixed and will be paid at theretirement of applicable employees, and the projected benefit obligations are calculated based on these fixed retirement
benefits. As a result, service cost under the defined benefit pension plans at SOFTBANK MOBILE and SOFTBANKTELECOM did not occur for the fiscal year ended March 31, 2011.

34

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the fiscal year ended March 31, 2011

<Allowance for point mileage >SOFTBANK MOBILE has an allowance for point mileage which is accrued based on the estimated future obligation
arising from point service, based on past experience.
(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, which is included in “Minority
interests.”(5) Accounting for significant hedge transactions[1] Forward-exchange contract① <Hedge accounting>Receivables and obligations denominated in foreign currencies for which foreign exchange 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.
② <Derivative instruments for hedging and hedged items>
Derivative instruments for hedging:
Forward-exchange contract
Hedged items:
Foreign currency-denominated receivables, obligations andforecasted transactions③ <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.
④ < 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
① <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.
② <Derivative instruments for hedging and hedged items>
Derivative instruments for hedging:Interest rate swap contracts
Hedged items:
Interest expense on borrowings③ <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.
④ < 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.

35

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the fiscal year ended March 31, 2011[3] Collar transaction① <Hedge accounting>Unrealized gains and losses, net of tax, on a collar transaction that qualifies as an effective cash flow hedge at
consolidated subsidiaries in the United States of America are reported as a separate component of “Equity” in the
Company’s consolidated balance sheets. As such, unrealized gains and losses associated with the collar transaction will
be recognized into earnings in the same period during which the hedged assets and liabilities are recognized in earnings.
② <Derivative instruments for hedging and hedged items>
Derivative instruments for hedging:
Prepaid variable share forward contract (the collar transaction)
Hedged items:
Equity security③ <Hedging policy>
The purpose of the collar transaction is to hedge the variability of cash flows associated with the future market price of
the underlying equity security, which is used for the settlement of loans at maturity.
④ <Effectiveness of hedge transactions>
The effectiveness of hedge transaction is assessed by measuring high correlation between the variability of cash flows
associated with the market price 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) is amortized over a 20-year-period.
(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, and Telecom Express
Co.,Ltd. adopted the consolidated taxation system.

36

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the fiscal year ended March 31, 2011

(7) Changes in Basis of Presentation of Consolidated Financial Statements
1. Application of accounting standards codification (ASC) 810, consolidations, formerly SFAS No. 167, amendments to FASB
interpretation No. 46 (R) (SFAS 167)
Effective April 1, 2010, certain subsidiaries of the Company that apply generally accepted accounting principles in the UnitedStates of America adopted ASC 810.
As a result of the application of the accounting standard, the scope of SB Asia Infrastructure Fund L.P. changed from an affiliate
under equity method to a consolidated subsidiary. The effect of this change is not material for the fiscal year ended March 31,
2011.
2. Application of accounting standard for equity method of accounting for investments“Accounting Standard for Equity Method of Accounting for Investments” (Accounting Standards Board of Japan (ASBJ)
Statement No. 16, March 10, 2008) and “Practical Solution on Unification of Accounting Policies Applied to Associates
Accounted for Using the Equity Method” (Practical Issues Task Force (PITF) No. 24, March 10, 2008) were applied andnecessary adjustments for the consolidated accounting were made for the fiscal year ended March 31, 2011. The effect of thischange is not material for the fiscal year ended March 31, 2011.
3. Application of accounting standard for asset retirement obligations“Accounting Standard for Asset Retirement Obligations” (ASBJ Statement No. 18, March 31, 2008) and “Guidance on
Accounting Standard for Asset Retirement Obligations” (ASBJ Guidance No. 21, March 31, 2008) were applied as of April 1,
2010. The effect of this change in operating income and ordinary income is not material and income before income taxes andminority interests decreased by ¥8,596 million for the fiscal year ended March 31, 2011.
(1) Asset retirement obligations which are recorded in the consolidated balance sheets
The Group reasonably estimated removal costs and recorded the asset retirement obligations mainly for the corporate headquarter building, certain data and network centers located in the rental properties under the rental contracts. Useful periodsof 2 years to 33 years and discount rates from 0.1% to 2.3% are applied for the estimation of asset retirement obligations.
(2) Asset retirement obligations which are not recorded in the consolidated balance sheets
The Group has obligations to restore mobile phone base stations and telephone line facilities for transmission to their
original conditions under the rental contracts. However, considering business continuity, the removal of these facilities isdifficult and the possibility of executing the obligation to restore these facilities to their original conditions is extremely low,
and therefore, the asset retirement obligations are not recorded at the fiscal year ended March 31, 2011.

(8) Additional information“Accounting Standard for Presentation of Comprehensive Income” (ASBJ Statement No. 25, June 30, 2010) was applied for the
fiscal year ended March 31, 2011.

37

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the fiscal year ended March 31, 2011(9) Notes(Consolidated Balance Sheets)
1. Accumulated depreciation of property and equipment
As of March 31, 2010
1,048,584

million yen

As of March 31, 2011
1,113,677

million yen

2. Investments in non-consolidated subsidiaries and affiliates
As of March 31, 2010
Investment securities and investments in partnerships

149,025

As of March 31, 2011

million yen

192,046

million yen

3. Additional entrustment for debt assumption of bonds (As of March 31, 2010)
SOFTBANK MOBILE has entrusted cash for the repayment of the straight bonds listed in the following table based on debt
assumption agreements with a financial institution. The bonds are derecognized in the Company’s consolidated balance
sheets.
The trust had collateralized debt obligations (“CDO”) issued by a Cayman Islands based Special-Purpose Company (“SPC”).
The SPC contracted a credit default swap agreement secured by debt securities (corporate bonds), which referred to a certain
portion of the portfolio consisting of 160 referenced entities. Since defaults (credit events under the agreement) of more than acertain number of referenced entities occurred, ¥75,000 million in total was reduced from the redemption amount of the CDO
in April 2009 and an additional entrustment was required for the reduced amount.
As a result, for the amount required as the additional entrustment of ¥75,000 million, a long term accounts payable wasrecognized as a recognized subsequent event (Type I subsequent event) and included in “Other liabilities” of long-term
liabilities in the consolidated balance sheets, and it was recorded as special loss in the consolidated statement of income for the
fiscal year ended March 31, 2009.
As of March 31, 2010, since the maturity for the additional entrustment was within one year, the accounts payable was included
in “Accounts payable-other and accrued expenses” of current liabilities in the consolidated balance sheets.
Mizuho Corporate Bank, Ltd and the Company set up a credit line facility contract in order to support the repayments of thebonds issued by SOFTBANK MOBILE.

As of March 31, 2010
Subject Bonds

Issue date

Maturity date

Third Series Unsecured Bond

August 19, 1998

August 19, 2010

25,000Fifth Series Unsecured Bond

August 25, 2000

August 25, 2010

25,000Seventh Series Unsecured Bond

September 22, 2000

September 22, 2010

25,000

Total

Amount of transferred bond

75,000 million yen

38

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the fiscal year ended March 31, 2011

4. 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, 2010

As of March 31, 2011

Assets pledged as collateral:
Cash and deposits
Notes and accounts receivable - trade

213,098

222,613273,231306,527

1

Marketable securities-

73,592

Buildings and structures

12,133

11,694

Telecommunications equipment

182,945

281,936

Telecommunications service lines

86

71

Land
Investment securities and investments in unconsolidated
subsidiaries and affiliated companies
Investments and other assets - other assets

10,633

10,747

81,701-

17,225

9,554

Total

791,054

million yen

As of March 31, 2010

916,738

million yen

As of March 31, 2011

Secured liabilities:
Accounts payable - trade

1,674

Short-term borrowings
Long - term debt2
Total

964

1,928

93,686

1,086,707

772,577

1,090,310

million yen

867,227

million yen

Notes:
1. Shares of Yahoo! Inc. placed as collateral for a loan procured by a subsidiary of the Company in the United States ofAmerica were transferred to “Marketable securities” since the maturity for the loan was within one year. Theseshares were recorded as “Investment securities and investments in unconsolidated subsidiaries and affiliatedcompanies” as of March 30, 2010.
2. Consolidated subsidiaries shares owned by SOFTBANK MOBILE, SOFTBANK MOBILE shares owned by BB
Mobile Corp. and BB Mobile Corp. shares owned by Mobiletech Corporation are pledged as collateral for long-term
debt (totaled to ¥986,702 million and ¥772,577 million, as of March 31, 2010 and March 31, 2011, respectively)
resulting from the acquisition of SOFTBANK MOBILE, in addition to the assets pledged as collateral above.
[2] For borrowings of investee
Assets pledged as collateral for third party’s liability are as follows:

Assets pledged as collateral:
Investment securities and investments in unconsolidated
subsidiaries and affiliated companies

39

As of March 31, 2010

As of March 31, 2011

2,000

-

million yen

million yen

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the fiscal year ended March 31, 2011(2) Borrowings by securitization of receivables[1] The securitization of installment sales receivable of SOFTBANK MOBILE
Cash proceeds through the securitization of installment sales receivables of SOFTBANK MOBILE, excluding that
qualify for derecognition criteria of a financial asset, were included in “Short-term borrowings” (¥175,359 million and¥49,903 million, as of March 31, 2010 and March 31, 2011, respectively) and “Long-term debt” (¥44,454 million, as ofMarch 31, 2010). The amounts of the senior portion of the securitized installment sales receivables (¥219,813 millionand ¥49,903 million, as of March 31, 2010 and March 31, 2011, respectively) were included in “Notes and accountreceivable-trade”, along with the subordinated portion held by the SOFTBANK MOBILE. The trustee raised thefunds through asset backed loans based on the receivables.
[2] The securitization of receivables for ADSL services of SOFTBANK BBSOFTBANK BB transferred its senior portion of the securitized present and future receivables for ADSL services* to a
SPC (a consolidated subsidiary), and the SPC raised the funds through asset backed loans based on the receivables(¥10,504 million and ¥2,920 million, as of March 31, 2010 and March 31, 2011, respectively) from a financial
institution. Cash proceeds through the asset backed loans are included in the “Short-term borrowings” (¥6,660 millionand ¥2,920 million, as of March 31, 2010 and March 31, 2011, respectively) and “Long-term debt” (¥3,844 million, as
of March 31, 2010).
Note:* A certain portion of present and future (through March 2012) receivables realized through the ADSL services
provided by SOFTBANK BB.
(3) 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, 2010
Short-term borrowings

114,000

million yen

As of March 31, 2011
114,000

million yen(4) 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, 2010

As of March 31, 2011

Assets of which ownership is not transferred:
35

60

Telecommunications equipment

16,71055,075Construction in progress

1,538

186

Buildings and structures

Other property and equipment
Software
Other intangibles

-

1

4,755

14,055

12

179

240

Investments and other assets - other assets
Total

23,292328
million yen

As of March 31, 2010

69,886

million yen

As of March 31, 2011

Installment payables:
Accounts payable - other and accrued expenses

4,148

9,906

Long- term accounts payable - otherTotal

20,741

63,08624,88940

million yen

72,993

million yen

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the fiscal year ended March 31, 2011

5. Guarantee obligation (As of March 31, 2011)
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 clams and reorganization security
interests amounting to ¥41,000 million.
6. Line of credit as a creditor (not used)
As of March 31, 2010
16,846

million yen

As of March 31, 201115,894

million yen

7. Financial covenants (As of March 31, 2011)
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, 2011, 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) At the end of the year and the first half of the year, balance sheets of SOFTBANK BB and SOFTBANK TELECOM must
not show a net capital deficiency. The consolidated balance sheets of BB Mobile Corp. at the end of the year and the firsthalf of the year must not show a net capital deficiency.
(3) SOFTBANK MOBILE received a loan (the “SBM loan”) from Mizuho Trust & Banking Co., Ltd. (the “lender”), which, as
the Tokutei Kingai Trust Trustee, was entrusted with the proceeds by WBS Funding1. Under the terms of the SBM loan
agreement, SOFTBANK MOBILE is allowed a certain degree of flexibility in its business operations, as a general rule.
However, in the event that the loan agreement's financial performance targets (reduction in cumulative debt, adjusted
EBITDA2, leverage ratio3) or operational performance targets (number of subscribers) are not met, depending on theimportance and the timing of the issue, the influence of the lender on the operations of SOFTBANK MOBILE might beincreased. It is possible that limits will be placed on capital investment, that prior approval will be required fordevelopment of new services, that a majority of the board directors will be appointed, and that rights to assets pledged ascollateral, including shares of SOFTBANK MOBILE, will be exercised.
Notes:
1. WBS Funding (Whole Business Securitization Funding)A special-purpose company for the purpose of allocating the total amount raised from domestic and foreign financial
institutions--¥1,441.9 billion--under the WBS scheme through the Tokutei Kingai Trust Trustee for the SBM loan to
SOFTBANK MOBILE. SOFTBANK MOBILE borrowed from Tokutei Kingai Trust Trustee an amount of ¥1,366
billion, representing the total amount of ¥1,441.9 billion raised by WBS Funding less such items as interest hedge costs
and interest reserve.
2. Adjusted EBITDA
Lease payments which are included in operating expenses are added back to EBITDA.
3. Leverage ratio
Leverage ratio = Debt / Adjusted EBITDA. The balance of debt does not include capital financing, subordinated loans
from the SOFTBANK Group.

41

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the fiscal year ended March 31, 2011

(Consolidated Statements of Income)
1. Selling, general and administrative expenses
Sales commission and sales promotion expense

Fiscal year ended
March 31, 2010
471,920 million yen

Fiscal year ended
March 31, 2011
513,482 million yen

Payroll and bonuses

125,798

126,883

8,499

14,646

Provision for allowance for doubtful accounts

2. Unrealized appreciation on valuation of investments and loss on sale of investments at subsidiaries in the United Statesof 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 Accounting Standards Codification Topic 946(ASC 946) andaccount for investment securities in accordance with ASC 946.
The net changes in the fair value of the investments are recorded as unrealized appreciation on valuation of investments andloss on sale of investments at subsidiaries in the U.S., net and loss on sale of investments, computed based on the acquisition
cost, is also included in this account. The unrealized appreciation on valuation of investments and loss on sale of investments
included in unrealized appreciation 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, 2010
Unrealized appreciation on valuation of investment
at subsidiaries in the U.S.,net
Loss on sale of investments
at subsidiaries in the U.S.,net
Total

Fiscal year ended
March 31, 2011

1,927

1,041

(2,230)(777)(303) million yen

263

million yen

3. Loss on retirement of non current assets (For the fiscal year ended March 31, 2010)(1) Loss on retirement of non current assets related to the termination of second-generation mobile phone services
Certain pieces of telecommunications equipment being used exclusively for second-generation (2G) mobile phone services
in the Mobile communications business are to be removed upon termination of 2G mobile phone services in March, 2010.
These pieces of telecommunications equipment were depreciated under the straight-line method over the period
commencing from the acquisition of Vodafone K.K. (currently SOFTBANK MOBILE) in April 2006 to the termination of
2G services in March, 2010.
In June 2009, a new frequency for the next generation mobile phone services was assigned to SOFTBANK MOBILE.
The telecommunications equipment being used for 2G mobile phone services except for the aforementioned equipment wasreviewed to determine which pieces would be used for the next generation mobile phone services and which pieces will be
removed. For the year ended March 31, 2010, loss on retirement of non current assets was recorded for the assets to be
additionally removed. As the assets to be removed upon termination of 2G services were specified, it became possible toreasonably estimate the removal costs. These removal costs were included in loss on retirement of non current assets inthe consolidated statements of income for the fiscal year ended March 31, 2010.
The loss on retirement of non current assts of ¥23,011 million consists of ¥16,544 million for equipment removal cost and¥6,467 million for loss on retirement of telecommunications equipment.
(2) Loss on retirement of non current assets related to the telecommunications equipment for third-generation mobile phone
SOFTBANK MOBILE replaced certain pieces of existing wireless network equipment in order to increase efficiency of
the future capital expenditures and reduce maintenance costs. As a result, the previously used wireless network equipment
for third-generation mobile phone services was retired, and the total carrying amounts of the retired assets and the related
removal costs were recorded as loss on retirement of non current assets in the consolidated statements of income for the
fiscal year ended March 31, 2010. The loss on retirement of non current assets of ¥22,493 million consists of ¥13,726
million for telecommunications equipment, ¥8,689 million for software, and ¥77 million for removal costs.

42

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the fiscal year ended March 31, 2011

4. Loss on disaster (For the fiscal year ended March 31, 2011)
Loss on disaster was recorded due to the Great East Japan Earthquake occurred in March 2011.
The details are as follows:
Loss on damage and restoration expenses for telecommunications network– Loss on retirement and demolition of telecommunications network such as base stations
due to the earthquake– Removal, restoration, and check up expenses for the assets described above
Loss on exemption of receivables from customers and additional allowance for doubtful
accounts– Exemption of receivables from customers afflicted by the disaster– Additional allowance for doubtful accounts deemed to be uncollectable
Loss on non cancelable advertisement contracts which were already ordered
Others– Lending of mobile phone handsets free of charge and replacement expenses of customer
premises equipment– Business consignment expenses for call centers to support customers corresponding
to the earthquake disaster– Supporting expenses for damaged agencies, and others
Total

6,243 million yen

3,636

2,005
2,530

14,416 million yen

5. Valuation loss on option (For the fiscal year ended March 31, 2011)
The Company has entered into agreements containing a put option and a call option for shares of Wireless City Planning Inc.,
which is the Company’s affiliate under equity method, with its shareholders other than the Company. The put option is theother shareholders’ right to sell the shares to the Company and the call option is the Company’s right to buy the shares from theother shareholders. These options are measured at fair value and the valuation loss is recorded.
6. Income taxes – corrections (For the fiscal year ended March 31, 2011)Yahoo Japan received a correction notice from Tokyo Regional Taxation Bureau on June 30, 2010. Yahoo Japan acquired all
the shares of SOFTBANK IDC Solutions Corp. from the Company in February 2009 and merged it in March 2009. At themerger, loss carryforwards held by SOFTBANK IDC Solutions Corp. were carried and utilized by Yahoo Japan. The noticecorrects this tax treatment insisting that the treatment was to reduce Yahoo Japan’s income taxes inappropriately. Additional
income taxes of ¥ 26,450 million were included in income taxes - correction and paid for the fiscal year ended March 31, 2011.
Yahoo Japan submitted a request for reconsideration to the national tax tribunal and brought legal suit in April 2011.

43

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the fiscal year ended March 31, 2011

(Consolidated Statements of Comprehensive Income)(Additional information)“Accounting Standard for Presentation of Comprehensive Income” (ASBJ Statement No. 25, June 30, 2010) was applied for the
fiscal year ended March 31, 2011.
Fiscal year from April 1, 2010 to March 31, 2011
1. Comprehensive Income attributable for the last fiscal year ended March 31, 2010
Comprehensive income attributable to owners of the parent
Comprehensive income attributable to minority interests

96,685

Total

145,265

million yen

48,579million yen

2. Other Comprehensive income for the last fiscal year end March 31, 2010
Unrealized gain on available-for-sale securities
Deferred gain on derivatives under hedge accounting

12,806

million yen(10,788)

Foreign currency translation adjustment
Share of other comprehensive income of associates accounted
for using equity method
Total(3,618)
2,176
575

44

million yen

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the fiscal year ended March 31, 2011

(Consolidated Statements of Changes in Equity)
Fiscal year from April 1, 2009 to March 31, 2010
1. Class and number of outstanding shares(shares in thousands)
March 31, 2009

Increase

Decrease

March 31, 2010

1,081,023

1,479

-

1,082,503

Number of common stocks

Note: Increase resulted from the exercise of stock acquisition rights.
2. Class and number of treasury stocks(shares in thousands)
March 31, 2009

Increase

Decrease

169

5

-

Number of common stocks

March 31, 2010174

Note: Increase resulted from the acquisition of the fractional shares.
3. Stock acquisition rights(1) Stock acquisition rights as stock options
Type

Detail ofstock acquisition rights

Consolidated
Subsidiaries-

Number of shares for stock acquisition rights(in thousands)
March 31,
March 31,
Increase
Decrease
2010
2009Class of shares

Total

Millions ofyenMarch 31,
2010

-

450

-

450

(2) Stock acquisition rights other than aboveType

Detail ofstock acquisition rights

Consolidated
Subsidiaries-

Number of shares for stock acquisition rights(in thousands)
March 31,
March 31,
Increase
Decrease
2010
2009Class of shares

Total

Millions ofyenMarch 31,
2010

-

25

-

25

4. Dividends(1) Dividend paid
Resolution
Ordinary general meeting ofshareholders, June 24, 2009Class of shares

Amount of dividend

Dividend(Millions of yen)

per share

Common stocks

2,702

¥2.50

Record date

Effective date

March 31, 2009

June 25, 2009

(2) Dividends which recorded date is in the fiscal year ended March 31, 2010 and effective date for payment is in the fiscal
year ended March 31, 2011
Resolution

Class ofAmount of dividend

Source ofDividend

shares(Millions of yen)

dividend

per share

Ordinary general meeting ofCommonshareholders, June 25, 2010

stocks5,411

45

Retainedearnings¥5.00

Record date

Effective date

March 31, 2010

June 28, 2010

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the fiscal year ended March 31, 2011

Fiscal year from April 1, 2010 to March 31, 2011
1. Class and number of outstanding shares(shares in thousands)
March 31, 2010

Increase

Decrease

March 31, 2011

1,082,503

26-

1,082,530

Number of common stocks

Note: Increase resulted from the exercise of stock acquisition rights.
2. Class and number of treasury stocks(shares in thousands)
March 31, 2010

Increase

Decrease

174

5

-

Number of common stocks

March 31, 2011180

Note: Increase resulted from the acquisition of the fractional shares.
3. Stock acquisition rights(1) Stock acquisition rights as stock options
Detail ofstock acquisition rights

Type

The Company
Consolidated
Subsidiaries

Number of shares for stock acquisition rights(in thousands)
March 31,
March 31,
Increase
Decrease
2011
2010
-

Class of shares

Total

Millions ofyenMarch 31,
2011
100

-

585

-

685

(2) Stock acquisition rights other than aboveType

Detail ofstock acquisition rights

Consolidated
Subsidiaries-

Number of shares for stock acquisition rights(in thousands)
March 31,
March 31,
Increase
Decrease
2011
2010

Class of shares

Total

Millions ofyenMarch 31,
2011

-

18

-

18

4. Dividends(1) Dividend paid
Resolution
Ordinary general meeting ofshareholders, June 25, 2010

Class of shares

Amount of dividend

Dividend(Millions of yen)

per share

Common stocks

5,411

¥5.00

Record date

Effective date

March 31, 2010

June 28, 2010

(2) Dividends which recorded date is in the fiscal year ended March 31, 2011 and effective date for payment is in the fiscal
year ending March 31, 2012
Resolution

Class ofAmount of dividend

Source ofDividend

shares(Millions of yen)

dividend

per share

Ordinary general meeting ofCommonshareholders, June 24, 2011

stocks5,411

46

Retainedearnings¥5.00

Record date

Effective date

March 31, 2011

June 27, 2011

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the fiscal year ended March 31, 2011

(Consolidated Statements of Cash Flows)
1. Reconciliation of cash and cash equivalents to the amounts presented in the accompanying consolidated balance sheets
As of March 31, 2010

2.

million yen

As of March 31, 2011

Cash and deposits

690,053

Marketable securities

4,342

78,099Time deposits with original maturity over three months(2,733)(14,832)

Stocks and bonds with original maturity over three months(3,980)(77,769)

Cash and cash equivalents

687,681

million yen

861,657 million yen

847,155 million yen

Assets and liabilities of newly consolidated subsidiaries by acquisition (For the fiscal year ended March 31, 2010)
The estimated fair values of the assets acquired and liabilities assumed of a new consolidated subsidiary at the acquisition dateare as follows:
BB Modem Rental Yugen Kaisha
As of March 31, 2010
Current assets

13,685

Non-current assets

9,618

Goodwill

4,679

Current liabilities(7,142)Acquisition cost 2

20,840Cash and cash equivalents of newly
consolidated subsidiary
Payment for the acquisition

million yen(20,840)

million yen

Notes:
1. SOFTBANK BB spun off its modem rental business in order to concentrate on its core broadband business andestablished BB Modem Rental Yugen Kaisha (“BB Modem rental”) in 2005. SOFTBANK BB sold its modem rental
business (the sale of all BB Modem Rentals’ whole ownership interest) to Yugen Kaisha Gemini BB in 2005.
On February 16, 2010, SOFTBANK BB acquired all shares of BB Modem Rental from Gemini BB Holdings, as aresult of reconsideration of significance of its modem rental business after the Group’s entry into Mobile
Communications business in 2006. SOFTBANK BB merged BB Modem Rental on March 31, 2010, effectively.
2. Loan payable to SOFTBANK BB of ¥20,827 million was included.
3. Income taxes paid
Payment for income taxes-corrections of ¥26,450 million based on the receipt of the correction notice described in “(9) Notes(Consolidated Statements of Income) 6. Income taxes-corrections” are included in “Income taxes paid” in the consolidated
statements of cash flows for the fiscal year ended March 31, 2011.
4. 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.
5. Proceeds from sale and lease back of equipment newly acquired
Once SOFTBANK MOBILE and others purchase telecommunications equipment for the purpose of assembly, installation andinspection, SOFTBANK MOBILE and others sell 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.”47

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the fiscal year ended March 31, 2011

6. Payments for additional entrustment for debt assumption
Additional entrustment of ¥75,000 million recorded as special loss in the consolidated statements of income for the fiscal year
ended March 31, 2009 reached its maturity date for the fiscal year ended March 31, 2011. The amount of payment was recorded
as “Payments for additional entrustment for debt assumption” in the consolidated statements of cash flows.
7. Payments for repurchase of minority interests and long-tem debt
The Company acquired all class 1 preferred stock-series 1, 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, which was recorded as“Long-term debt” in the Company’s consolidated balance sheets, from SOFTBANK MOBILE Corp. to Vodafone Overseas
Finance Limited for the total amount of ¥412,500 million during the fiscal year ended March 31, 2011. Of the total amount of
the acquisition, the amount paid during the fiscal year ended March 31, 2011 amounting to ¥212,500 million, together withrelated expenses associated with the acquisition were recorded as “Payments for repurchase of minority interest and long-tem
debt.” The remaining amount of ¥200,000 million is scheduled to be paid in April 2012.
8.

Non-cash investing and financing transaction
Acquisitions of fixed assets by installments were ¥23,695 million and ¥51,347 million, respectively for the fiscal year ended
March 31, 2010 and March 31, 2011.

48

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the fiscal year ended March 31, 2011

(Leases)
1. Finance lease transactions(As a lessee)(1) Finance leases in which the ownership of leased assets is transferred to lessees at the end of lease periods[1] Details of lease assets are as follows:
Tangible assets, mainly telecommunications equipment in the Mobile Communications segment.
[2] Depreciation method for lease assets
The depreciation method is the same as the method used for fixed assets possessed by each subsidiary and the Company.
(2) Finance leases in which the ownership of leased assets is not transferred to lessees at the end of lease periods[1] Details of lease assets are as follows:
Tangible assets, mainly telecommunications equipment in the Fixed-line Telecommunications segment.
[2] Depreciation method for lease assets
The straight-line method is adopted over the period of the finance leases, assuming no residual value.
Lease transactions contracted before April 1, 2008 are continuously permitted to be accounted for as operating lease transactions,and as if capitalized information is as follows:(1) Amounts equivalent to acquisition costs, accumulated depreciation, and accumulated impairment loss of leased property for eachyear:
Telecommunications equipment andtelecommunications service lines
Acquisition cost
Accumulated depreciation
Accumulated impairment loss
Net leased property
Buildings and structures
Acquisition cost
Accumulated depreciation
Accumulated impairment loss

As of March 31, 2010

As of March 31, 2011

141,093(67,776)

124,132(73,353)(33,232)
40,084(24,743)
26,035

million yen

46,730(11,909)-

Net leased property
Property and equipment - others
Acquisition cost
Accumulated depreciation
Accumulated impairment loss

34,82046,715(14,238)
million yen

16,113(10,223)(1,242)Net leased property
Intangible assets
Acquisition cost
Accumulated depreciation
Accumulated impairment loss
Net leased property
Total
Acquisition cost
Accumulated depreciation
Accumulated impairment loss
Net leased property

4,647
9,070
(6,669)(290)
2,110
213,007(96,579)(34,765)
81,66249

million yen

32,477

million yen

13,072(9,859)(1,078)million yen

2,134

million yen

million yen

8,597(8,004)(171)
421

million yen

million yen

192,518(105,455)(25,992)
61,069million yen

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the fiscal year ended March 31, 2011

Current portion of long-term prepaid expenses related to a lease contract, in which the contract term and payment term are
different, in the amount of ¥670 million and ¥583 million as of March 31, 2010 and March 31, 2011 are included in“Other current assets” in the consolidated balance sheets. Long-term prepaid expenses relating to the lease contract as ofMarch 31, 2010 and March 31, 2011 were ¥25,157 million and ¥26,073 million, respectively and are included in “Other
assets” of investments and other assets in the consolidated balance sheets.
(2) Obligations under finance lease at the end of each year:
As of March 31, 2010

Due within one year
Due after one year

26,191
79,431
Total

Balance of allowance for impairment loss on
leased property

As of March 31, 2011

15,67862,845

105,623

million yen

78,523

million yen

10,776

million yen

4,530

million yen(3) Lease payments, payment of the lease obligation for impaired leased property, amounts equivalent to depreciation, andinterest expense for each year:
Fiscal year ended

Fiscal year ended

March 31, 2010

36,752

Lease payments
Payment of the lease obligation for impaired
leased property
Depreciation expense
Interest expense
Impairment loss

March 31, 2011

million yen

30,830 million yen

8,416

6,246

23,9608,654
383

20,9896,735-(4) Calculation method used to determine the amount equivalent to depreciation and interest expense:
The amount equivalent to depreciation is computed using the straight-line method over the period of the finance leases,
assuming no residual value.
The amount equivalent to interest expense is calculated by subtracting acquisition costs from the total lease payments
and allocated over the lease periods based on the interest method.

50

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the fiscal year ended March 31, 2011

(Financial Instruments)
Fiscal year ended March 31, 2010
(Additional information)“Accounting Standard for Financial Instruments” (ASBJ Statement No. 10, March 10, 2008) and its “Implementation Guidance on
Disclosures about Fair Value of Financial Instruments” (ASBJ Guidance No. 19 Guidance, March 10, 2008) were applied for the
fiscal year ended March 31, 2010.
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, anddirect 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 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.
Marketable and investment securities are exposed to stock market fluctuation risk and foreign currency exchange risk. For
those risks, the Group is continuously monitoring investees’ financial condition, stock market fluctuation, and foreign currency
exchange risk. The Group enters into a variable share prepaid forward contract (collar transaction) utilizing its shares ofYahoo! Inc. The purpose of this collar transaction is to hedge the variability of cash flows associated with the future market
price of the underlying security, which will be used for the settlement of loans at their maturity.
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.
Corporate bonds are mainly issued by the Company and corporate bonds denominated in foreign currency are exposed toforeign currency exchange risk. Foreign exchange forward contracts are used to hedge this risk.
In order to hedge the cash flow fluctuation risk associated with the future market price of underlying securities for sale, interest
rate risk associated with financial assets and liabilities, and foreign currency exchange risk associated with assets and liabilities
denominated in foreign currencies, derivative transactions such as a collar transaction, interest rate swap transactions, andforeign exchange forward contracts are used.
Hedge accounting is applied for certain derivative transactions. Hedging instruments and hedged items, hedging policy, andeffectiveness of hedge transactions are described in “(6) Basis of Presentation of Consolidated Financial Statements 4.
Summary of significant accounting policies (5) Accounting for significant hedge transactions.” Derivative transactions
entered into by the Company are implemented and controlled based on the Company’s internal polices and are limited to theextent 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 value of financial instruments are measured based on the quoted market price, if available, or reasonably assessed value if aquoted 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 “(9) Notes (Derivative Transactions)” does not represent themarket risk of the derivative transactions.

51

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the fiscal year ended March 31, 2011

2. Fair value of financial instruments
The carrying amounts on the consolidated balance sheets, fair value, and differences as of March 31, 2010 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”)(Millions of yen)

As of March 31, 2010
Carrying Amount

Fair value

Differences

Assets(1) Cash and deposit¥690,053¥690,053¥-(2) Notes and accounts receivable-trade816,550

Allowance for doubtful accounts1(32,801)

Notes and accounts receivable-trade, net

783,748783,748-[1]Held-to-maturity debt securities

1,499

1,344

(155)

Investments in unconsolidated subsidiaries[2] and affiliated companies

8,639

19,274

10,635(3) Marketable securities and investment securities[3]Other securities

148,777

148,777-

1,632,718

1,643,198

10,480(1) Accounts payable-trade158,942

158,942-(2) Short-term borrowings

437,960

437,960-(3) Current portion of corporate bonds

54,40054,400-(4) Accounts payable-other and accrued expenses

451,408

451,408-(5) Income taxes payable

100,483

100,483-(6) Current portion of lease obligations

109,768

109,768-(7) Corporate bonds

448,523

488,877

40,353(8) Long-term debt

1,281,586

1,364,076

82,490(9) Lease obligations

224,484

224,922438

3,267,557

3,390,840

123,282[1]Hedge accounting is not applied

1,324

1,324

-

[2]Hedge accounting is applied

25,70125,701-

Total¥27,025¥27,025¥-

Total
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 on net basis.

52

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the fiscal year ended March 31, 2011

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.
(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 certain subsidiaries in the UnitedStates of America which apply ASC 946 are carried at fair value (Please see “(9) Notes (Investment in Debt and Equity
Securities) 5. Investment securities evaluated at fair value under the provisions set forth in Financial Services – Investment
Companies of the FASB Accounting Standards Codification”). Marketable and investment securities based on holding
purpose are described in “(9) Notes (Investment in Debt and Equity Securities).”Liabilities(1) Accounts payable-trade, (4) Accounts payable-other, 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 or the price provided by a financial institution. For certain corporate bonds
denominated in foreign currencies, for which foreign exchange forward contracts are used to hedge the foreign currency
fluctuations, fair value includes fair value of the derivative financial instrument.
(8) Long-term debt
Fair value of long-term debts is based on the price provided by a financial institution or 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 “(9) Notes (Derivative Transactions).”

53

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the fiscal year ended March 31, 2011

Notes 2. Financial instruments of which the fair value is extremely difficult to measure.
(Millions of yen)Classification
Unlisted investment securities of unconsolidated subsidiaries
and affiliated companies
Unlisted equity securities

Carrying Amounts¥140,386
68,241

Investments in partnerships

6,827
Total

¥215,454

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

Notes 3. The redemption schedule for money claim and held-to-maturity debt securities with maturity date subsequent tothe consolidated balance sheets date.
(Millions of yen)Classification

April 1, 2010 toApril 1, 2011 toApril 1, 2015 toApril 1, 2020

March 31, 2011

March 31, 2015

March 31, 2020

and thereafter

Cash and deposits¥690,053

¥-

¥-

¥-

Notes and accounts receivable-trade693,406

123,144

-

-

800

100

-

600

Marketable and investment securities
Held-to-maturity debt securities(corporate bonds)
Other securities with maturity date
(corporate bonds)
Other securities with maturity date (other)

0503

27,000

-

300

-

-

-

Sub-total

1,100

603

27,000600¥1,384,559¥123,747¥27,000

¥600

Total

Notes 4. The redemption schedule for corporate bonds, long-term debt, and lease obligations subsequent to theconsolidated balance sheets date.
(Millions of yen)

April 1, 2010 toApril 1, 2011 toApril 1, 2012 toApril 1, 2013 toMarch 31, 2011

March 31, 2012

March 31, 2013

March 31, 2014

¥54,400¥128,500¥144,998¥97,625

Long-term debt

229,653

184,804

136,691

250,200

Lease obligations

109,768

79,63977,552

39,726¥393,821¥392,943¥359,241¥387,552

Classification
Corporate bonds

Total

April 1, 2014 toApril 1, 2015 toApril 1, 2020

March 31, 2015

March 31, 2020

and thereafter

Corporate bonds¥44,900¥32,500¥-

Long-term debt

232,581

477,308-

Classification

Lease obligations
Total

24,7152,850-¥302,197¥512,658¥-

54

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the fiscal year ended March 31, 2011

Fiscal year ended March 31, 2011
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, anddirect 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 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.
Marketable and investment securities are exposed to stock market fluctuation risk and foreign currency exchange risk. For
those risks, the Group is continuously monitoring investees’ financial condition, stock market fluctuation, and foreign currency
exchange risk. The Group enters into a variable share prepaid forward contract (collar transaction) utilizing its shares ofYahoo! Inc. The purpose of this collar transaction is to hedge the variability of cash flows associated with the future market
price of the underlying security, which will be used for the settlement of loans at their maturity.
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.
Corporate bonds are mainly issued by the Company and corporate bonds denominated in foreign currency are exposed toforeign currency exchange risk. Foreign exchange forward contracts are used to hedge this risk.
In order to hedge the cash flow fluctuation risk associated with the future market price of underlying securities for sale, interest
rate risk associated with financial assets and liabilities, and foreign currency exchange risk associated with assets and liabilities
denominated in foreign currencies, derivative transactions such as a collar transaction, interest rate swap transactions, andforeign exchange forward contracts are used.
Hedge accounting is applied for certain derivative transactions. Hedging instruments and hedged items, hedging policy, andeffectiveness of hedge transactions are described in “(6) Basis of Presentation of Consolidated Financial Statements 4.
Summary of significant accounting policies (5) Accounting for significant hedge transactions.” Derivative transactions
entered into by the Company are implemented and controlled based on the Company’s internal polices and are limited to theextent 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 value of financial instruments are measured based on the quoted market price, if available, or reasonably assessed value if aquoted 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 “(9) Notes (Derivative Transactions)” does not represent themarket risk of the derivative transactions.

55

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the fiscal year ended March 31, 2011

2. Fair value of financial instruments
The carrying amounts on the consolidated balance sheets, fair value, and differences as of March 31, 2011 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”)(Millions of yen)

As of March 31, 2011
Carrying Amount

Fair value

Differences

Assets(1) Cash and deposit¥861,657¥861,657¥-(2) Notes and accounts receivable-trade657,774

Allowance for doubtful accounts1(36,063)

Notes and accounts receivable-trade, net

621,710

621,710-[1]Held-to-maturity debt securities

1,587

1,487

(100)

Investments in unconsolidated subsidiaries[2] and affiliated companies

15,93730,947

15,009(3) Marketable securities and investment securities[3]Other securities

160,025

160,025-

1,660,919

1,675,827

14,908(1) Accounts payable-trade193,644

193,644-(2) Short-term borrowings

410,950

410,950-(3) Commercial paper

25,00025,000-(4) Current portion of corporate bonds

128,500

128,500-(5) Accounts payable-other and accrued expenses

561,421561,421-(6) Income taxes payable

115,355

115,355-(7) Current portion of lease obligations

131,305

131,305-(8) Corporate bonds

507,390

584,477

77,087(9) Long-term debt

1,030,959

1,102,328

71,368(10) Long-term accounts payable-other265,141

265,085(56)(11) Lease obligations

199,769

203,113

3,343

3,569,439

3,721,182

151,742

Total
Liabilities

Total
Derivative transactions

2[1]Hedge accounting is not applied

(216)

(216)

-

[2]Hedge accounting is applied

20,856

20,856-

Total¥ 20,640¥ 20,640¥-

Notes:
1. Allowance for doubtful accounts associated with notes and accounts receivable-trade are deducted.
2. Derivative assets and liabilities are on 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.

56

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the fiscal year ended March 31, 2011

(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.
(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 certain subsidiaries in the UnitedStates of America which apply ASC 946 are carried at fair value (Please see “(9) Notes (Investment in Debt and Equity
Securities) 5. Investment securities evaluated at fair value under the provisions set forth in Financial Services – Investment
Companies of the FASB Accounting Standards Codification”). Marketable and investment securities based on holding
purpose are described in “(9) Notes (Investment in Debt and Equity Securities).”Liabilities(1) Accounts payable-trade, (3) Commercial paper, (5) Accounts payable-other, and (6) 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.
(4) Current portion of corporate bonds
The carrying amount approximates fair value because the carrying amount was equivalent to the quoted market price.
(7) 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.
(8) Corporate bonds
Fair value equals the quoted market price or the price provided by a financial institution.
(9) Long-term debt
Fair value of long-term debts is based on the price provided by a financial institution or the present value of future cash flows
discounted using the current borrowing rate for similar debt of a comparable maturity.
(10) Long-term accounts payable - other
Fair value of long-tem accounts payable - other is based on the present value of future cash flows discounted using the ratewith consideration for period up to payment date and credit risk.
(11) 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 “(9) Notes (Derivative Transactions).”57

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the fiscal year ended March 31, 2011

Notes 2. Financial instruments of which the fair value is extremely difficult to measure.
(Millions of yen)Classification

Carrying Amounts

Unlisted investment securities of unconsolidated subsidiaries
and affiliated companies
Unlisted equity securities
Investments in partnerships¥176,108
55,297
9,579

Total

¥240,985

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

Notes 3. The redemption schedule for money claim and held-to-maturity debt securities with maturity date subsequent tothe consolidated balance sheets date.
(Millions of yen)

April 1, 2011 toApril 1, 2012 toApril 1, 2016 toApril 1, 2021

March 31, 2012

March 31, 2016

March 31, 2021

and thereafter

Cash and deposits¥861,657

¥-

¥-

¥-

Notes and accounts receivable-trade566,564

91,210

-

-

1,100

-

-

600

117
-

400
109

27,200
-

-

1,217

509

27,200600¥1,429,438¥91,719¥27,200¥600

Classification

Marketable and investment securities
Held-to-maturity debt securities(corporate bonds)
Other securities with maturity date
(corporate bonds)
Other securities with maturity date (other)
Sub-total
Total

Notes 4. The redemption schedule for corporate bonds, long-term debt, lease obligations, and other interest bearing debt
subsequent to the consolidated balance sheets date.
(Millions of yen)

April 1, 2011 toApril 1, 2012 toApril 1, 2013 toApril 1, 2014 toMarch 31, 2012

March 31, 2013

March 31, 2014

March 31, 2015

Corporate bonds¥128,500¥144,998¥204,992¥44,900

Long-term debt

182,694

124,100

268,825

232,581

Lease obligations
Accounts payable – other by installment
purchase
Total

131,305

85,32555,59940,9199,906

13,921

13,921

13,921¥452,407¥368,345¥543,338¥332,322

April 1, 2015 toApril 1, 2016 toApril 1, 2021

March 31, 2016

March 31, 2021

and thereafterClassification

Classification
Corporate bonds¥70,000¥42,500¥-

Long-term debt

230,000

175,452-

Lease obligations
Accounts payable – other by installment
purchase
Total

17,861

63-

13,921

7,401-¥331,782¥225,417¥-

58

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the fiscal year ended March 31, 2011

(Investment in Debt and Equity Securities)
For the fiscal year ended March 31, 2010
1. Held-to-maturity debt securities(Millions of yen)Classification

As of March 31, 2010
Carrying Amount

Fair value

Differences

Fair value > Carrying AmountCorporate bonds

¥199

¥199

¥0

Corporate bonds

1,300

1,144

(155)

Total

¥1,499¥1,344¥(155)

Fair value≦Carrying Amount

2. Marketable and investment securities at fair value(Millions of yen)Classification

As of March 31, 2010
Carrying Amount

Investment Cost

Differences(1)Equity securities¥93,084¥19,014¥74,070(2)Debt securities

28,68026,3972,283(3)Others

2,718

2,359

358

124,483

47,771

76,712(1)Equity securities

8,010

11,337(3,326)(2)Debt securities

276

276

-

(3)Others

690

704

(14)

8,976

12,317(3,340)¥133,460¥60,089¥73,371

Carrying Amount > Investment Cost

Sub-total
Carrying Amount≦Investment Cost

Sub-total
Total

Note: Investment securities held by certain subsidiaries in the United States of America which apply ASC 946 are described in
below “5. Investment securities evaluated at fair value under the provisions set forth in Financial Services– Investment
Companies of the FASB Accounting Standards Codification.”
3. Marketable and investment securities sold during the fiscal year ended March 31, 2010
(Millions of yen)

Securities

Sales Price

Gain on sales

Loss on sales(1)Equity securities¥1,437¥803¥226(2)Others

3,049

56

-

¥4,487

¥860

¥226

Total

Note: Sales price of ¥760 million, gain on sales of ¥580 million, and loss on sales of ¥57 million for financial instruments ofwhich the fair value is extremely difficult to measure are included in the amounts above.
4. Marketable and investment securities impaired
Certain marketable and investment securities are impaired, and valuation loss on investment securities of ¥5,167 million(valuation loss on investment securities, of which the fair value is extremely difficult to measure, of ¥3,183 million is included)
is recorded for the fiscal year ended March 31, 2010.

59

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the fiscal year ended March 31, 2011

5. Investment securities evaluated at fair value under the provisions set forth in Financial Services – Investment Companiesof the FASB Accounting Standards Codification
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 Topic 946(ASC 946)
and account for investment securities in accordance with ASC 946.
Proceeds from sales and the carrying amounts of the investment securities at fair value recorded in the consolidated balance
sheets as of March 31, 2010 were as follows:
As of March 31, 2010
1,864 million yen
15,316 million yen

Proceeds from sales:
Carrying amounts of investment securities at fair value :Regarding net changes in fair value of the investment securities and gain on sale of the investment securities, please see “(9)Notes (Consolidated Statements of Income) 2. Unrealized appreciation on valuation of investments and loss on sale ofinvestments at subsidiaries in the United States of America, net.”

For the fiscal year ended March 31, 2011
1. Held-to-maturity debt securities(Millions of yen)Classification

As of March 31, 2011
Carrying Amount

Fair value

Differences

Fair value > Carrying AmountCorporate bonds

¥197

¥199

¥1

Corporate bonds

1,390

1,288

(102)

Total

¥1,587¥1,487¥(100)

Fair value≦Carrying Amount

2. Marketable and investment securities at fair value(Millions of yen)Classification

As of March 31, 2011
Carrying Amount

Investment Cost

Differences(1)Equity securities¥92,582¥19,151¥73,430(2)Debt securities

31,06026,587

4,473

Carrying Amount > Investment Cost

(3)Others

2,390

2,298

91

126,033

48,03877,995(1)Equity securities

20,18527,667(7,481)(2)Debt securities

693

702

(9)

Sub-total
Carrying Amount≦Investment Cost

(3)Others
Sub-total
Total

632

636

(4)

21,51029,005(7,494)¥147,544¥77,043¥70,500

Note: Investment securities held by certain subsidiaries in the United States of America which apply ASC 946 are described in
below “5. Investment securities evaluated at fair value under the provisions set forth in Financial Services– Investment
Companies of the FASB Accounting Standards Codification.”60

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the fiscal year ended March 31, 2011

3. Marketable and investment securities sold during the fiscal year ended March 31, 2011
(Millions of yen)

Securities

Sales Price(1)Equity securities(2)Others
Total

Gain on sales

Loss on sales¥13,650¥1,971

¥598

3,767

105

1

¥17,418¥2,076¥600

Note: Sales price of ¥371 million, gain on sales of ¥173 million, and loss on sales of ¥123 million for financial instruments ofwhich the fair value is extremely difficult to measure are included in the amounts above.
4. Marketable and investment securities impaired
Certain marketable and investment securities are impaired, and valuation loss on investment securities of ¥8,739 million(valuation loss on investment securities, of which the fair value is extremely difficult to measure, of ¥6,168 million is included)
is recorded for the fiscal year ended March 31, 2011.
5. Investment securities evaluated at fair value under the provisions set forth in Financial Services – Investment Companiesof the FASB Accounting Standards Codification
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 Topic 946(ASC 946)
and account for investment securities in accordance with ASC 946.
Proceeds from sales and the carrying amounts of the investment securities at fair value recorded in the consolidated balance
sheets as of March 31, 2011 were as follows:

Proceeds from sales:
Carrying amounts of investment securities at fair value :As of March 31, 2011
1,550 million yen
12,480 million yen

Regarding net changes in fair value of the investment securities and gain on sale of the investment securities, please see “(9)Notes (Consolidated Statements of Income) 2. Unrealized appreciation on valuation of investments and loss on sale ofinvestments at subsidiaries in the United States of America, net.”

61

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the fiscal year ended March 31, 2011

(Derivative Transactions)
As of March 31, 2010
(1) Derivative transactions to which the Company did not apply hedge accounting
1. Currency Related(Millions of yen)March 31, 2010
Nature of transaction

Contract amounts
Over 1 year

Fair

Unrealizedvalue

gain(loss)

Forward exchange contracts toOff-market
transactions– Purchase U.S. dollars and sell Japanese yen¥81,567¥-¥1,357¥1,357

657

-

(33)

(33)

¥82,225¥-¥1,324¥1,324– Purchase Euro and sell Japanese yen
Total

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

Hedge accounting
methodNature of transaction

Hedged items

Contract amount

Fair valueOver 1 year

Forward-exchange contracts:
Purchased option to buy
Deferral hedge

Forecasted transactions for
expenses denominated inforeign currencies
Forecasted transactions for
expenses denominated inforeign currencies

U.S. dollars

accounting
Euro

¥843

¥-

¥43

13

-

(0)

545

-

(Note 3)49,12047,807(Note 3)

¥50,522¥47,807

Forward-exchange contracts:
Purchased option to buy
Alternative method(Note 2)

Accounts payabletrade and otherAccounts payable- trade,and corporate bonds

U.S. dollars
Euro
Total

¥43

Notes:
1. Fair value is based on information provided by financial institutions at the end of the fiscal year.
2. Foreign monetary obligations denominated in foreign currencies for which foreign exchange forward contracts are used tohedge the foreign currency fluctuation are translated at the contracted rate, if the forward contracts qualify for hedge
accounting.
3. For certain accounts payable-trade, accounts payable-other and corporate bonds denominated in foreign currencies forwhich foreign exchange forward contracts are used to hedge the foreign currency fluctuations, fair value of derivative
financial instrument is included in fair value of the accounts payable-trade, accounts payable-other and corporate bonds ashedged items.

62

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the fiscal year ended March 31, 2011

2. Interest Related(Millions of yen)

Hedge accounting
methodNature of transaction

Contract amount

Hedged items

Fair valueOver 1 year

Deferral hedge

Interest swap:

accounting

Receiving floating rate
and paying fix rate

Interest for loan

Total

¥15,000¥10,000¥(260)¥15,000¥10,000¥(260)

Note: Fair value is based on information provided by financial institutions at the end of the fiscal year.
3. Securities Related(Millions of yen)

Hedge accounting
methodNature of transaction

Contract amount

Hedged items

Fair valueOver 1 year

Collar transaction:
Deferral hedge
accounting

A variable share prepaid
forward contract
consisting of a purchased
put option and a sold call
optionEquity securities

Total¥105,697¥105,697¥25,918¥105,697¥105,697¥25,918

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

As of March 31, 2011
(1) Derivative transactions to which the Company did not apply hedge accounting
1. Currency Related(Millions of yen)March 31, 2011
Nature of transaction

Contract amounts
Over 1 year

Fair

Unrealizedvalue

gain(loss)

Forward exchange contracts toOff-market
transactions– Purchase U.S. dollars and sell Japanese yen¥52,791– Purchase U.S. dollars and sell Korean won
Total

¥-

3. Securities Related
There are no applicable items.

63¥(217)

353

-

1

1

¥53,144¥-¥(216)¥(216)

Note: Fair value is based on information provided by financial institutions at the end of the fiscal year.
2. Interest Related
There are no applicable items.

¥(217)

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the fiscal year ended March 31, 2011

(2) Derivative transactions to which the Company applied hedge accounting
1. Currency Related(Millions of yen)

Hedge accounting
methodNature of transaction

Hedged items

Contract amount

Fair valueOver 1 year

Forward-exchange contracts:
Purchased option to buy
Deferral hedge

Forecasted transactions for
expenses denominated inforeign currencies
Forecasted transactions for
expenses denominated inforeign currencies

U.S. dollars

accounting
Euro
Total

¥205

¥-

¥(3)

1,181

-

(1)

¥1,387¥-¥(5)

Note: Fair value is based on information provided by financial institutions at the end of the fiscal year.
2. Interest Related(Millions of yen)

Hedge accounting
methodNature of transaction

Hedged items

Contract amount

Fair valueOver 1 year

Deferral hedge

Interest swap:

accounting

Receiving floating rate
and paying fix rate

Interest for loan

Total¥104,000¥99,000¥(1,418)¥104,000¥99,000¥(1,418)

Note: Fair value is based on information provided by financial institutions at the end of the fiscal year.
3. Securities Related(Millions of yen)

Hedge accounting
methodNature of transaction

Hedged items

Contract amount

Fair valueOver 1 year

Collar transaction:
Deferral hedge
accounting

A variable share prepaid
forward contract
consisting of a purchased
put option and a sold call
optionEquity securities

Total¥94,461¥-¥22,280¥94,461¥-¥22,280

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

64

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the fiscal year ended March 31, 2011

(Income Taxes)
For the fiscal year ended March 31, 2010

For the fiscal year ended March 31, 2011

1. Significant components of deferred tax assets and liabilities

1.

Significant components of deferred tax assets and liabilities(Million yen)

(Million yen)

Deferred tax assets

Deferred tax assets

Depreciation / Amortization¥99,676

Loss carryforwards¥79,172

Loss carryforwards
Revaluation of acquired consolidated subsidiaryat the respective fair market value

88,229Depreciation / Amortization

64,682

54,774

Investment securities

48,450Allowances for doubtful accounts

39,377

Revaluation of acquired consolidated subsidiaryat the respective fair market value

43,560Investment securities

32,106

Accounts payable-other and accrued expenses

31,520Accounts payable-other and accrued expenses

29,302

Allowances for doubtful accounts

19,903

Allowances for point mileage

19,211

Allowances for point mileage

17,068Others52,860

Others64,275Gross deferred tax assets

415,538

Gross deferred tax assets

368,633

Less: valuation allowance(174,215)

Less: valuation allowance(141,498)

Total deferred tax assets

241,323

Total deferred tax assets

227,135

Deferred tax liabilities
Unrealized gains on other securities

Deferred tax liabilities(30,504)

Unrealized gains on other securities(4,106)

Deferred taxable gain on a sale of shares of a
subsidiary to a 100% owned subsidiary underJapanese group taxation regime
Deferred gain on derivatives under hedge accounting

Total deferred tax liabilities(44,862)

OthersNet deferred tax assets¥196,461

Deferred gain on derivatives under hedge accounting
Others(10,251)

2. Reconciliation between the statutory income tax rate2.

and effective income tax rate:
Statutory tax rate

(27,844)(13,294)(7,642)(11,987)

Total deferred tax liabilities(60,768)

Net deferred tax assets¥166,366

Reconciliation between the statutory income tax rateand effective income tax rate:

40.69 %

Statutory tax rate

(Reconciliation)

40.69 %

(Reconciliation)

Change in valuation allowance(8.64) %Income taxes, current, correction, and deferred

5.70 %

Amortization of goodwill

8.40

Amortization of goodwill

5.09

Consolidation adjustments resulting from gain on sale ofinvestments in consolidated subsidiaries

7.26

Change in valuation allowance(5.05)

Equity in losses of affiliated companies

1.00

Others

1.26

Income tax rate per statements of income

Consolidation adjustments resulting from gain on saleof investments in consolidated subsidiaries
Others

49.97 %

Income tax rate per statements of income

65

4.18
(2.14)
48.47 %

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the fiscal year ended March 31, 2011

(Segment Information)
1. Segment information(Additional Information)“Accounting Standard for Disclosures about Segments of an Enterprise and Related information” (ASBJ Statement No. 17, March 27,2009) and “Guidance on Accounting Standard for Disclosures about Segments of an Enterprise and Related information” (ASBJ Guidance
No. 20, March 21, 2008) (hereafter “the new standards”) were applied for the fiscal year ended March 31, 2011.
(1) Over view 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, and contents. “Fixed-line
Telecommunications” business provides fixed-line telecommunication services. “Internet Culture” business provides Internet-based
advertising operations, e-commerce site operations such as Yahoo! Auctions and Yahoo! Shopping.
(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 condition which is applied for external customers. Assets are not allotted in the reportable segments.
(3) Net sales, segment income or loss, and others of reportable segments
For the fiscal year ended March 31, 2010

(Millions of yen)
Reconciliations toReportable segments
Other
MobileBroadband

Fixed-line

2

Amounts in consolidated

Total

Internetconsolidated statementof income 3

Subtotalstatement of income 4

Communications

Infrastructure

Telecommunications

Culture¥1,692,326¥198,262¥304,182¥265,938¥2,460,709¥302,696¥2,763,406¥-¥2,763,406

9,088

3,865

44,5094,816

62,28029,15291,433(91,433)-

Total

1,701,414

202,127

348,692

270,755

2,522,989

331,8492,854,839(91,433)

2,763,406

Segment income

260,895

48,39923,065

136,585

468,9455,878

474,824(8,953)465,871

Others:Depreciation
and amortization¥176,337¥17,023¥35,292¥9,864¥238,517¥4,667¥243,184¥759¥243,944

Net sales
Customers
Inter-segment

Notes:
1. Segment information is disclosed based on the new standards.
2. The PC software and peripherals distribution business and Fukuoka SOFTBANK HAWKS related business are included in “Other.”
3. Amounts in the column “Reconciliations to consolidated statement of income” of ¥(8,953) million represents elimination of intersegment
transactions and expenses of the corporate division of the Company, which totaled ¥1,624 million and ¥(10,577) million, respectively.
4. Segment income is adjusted with operating income in the consolidated statements of income.

66

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the fiscal year ended March 31, 2011

For the fiscal year ended March 31, 2011

(Millions of yen)
Reconciliations toReportable segments
Other
MobileBroadband

Fixed-line

Amounts in consolidated

1

Total

consolidated statement

Internetstatement of income 3

of income 2

SubtotalCommunications

Infrastructure

Telecommunications

Culture¥1,936,093¥183,070¥297,090¥279,232¥2,695,486¥309,153¥3,004,640¥-¥3,004,640

8,458

6,984

59,471

4,382

79,29734,481

113,778(113,778)

-

Total

1,944,551

190,055

356,561

283,615

2,774,783

343,635

3,118,419(113,778)

3,004,640

Segment income

402,411

43,15438,006150,305

633,877

7,092

640,970(11,806)

629,163

Others:Depreciation
and amortization¥156,993¥15,840¥36,634¥9,422¥218,891¥4,833¥223,725¥1,211¥224,937

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 ¥(11,806) million represents elimination of intersegment
transactions and expenses of the corporate division of the Company, which totaled ¥57 million and ¥(11,864) million, respectively.
3. Segment income is adjusted with operating income in the consolidated statements of income.

2. Information on impairment loss on fixed assets of reportable segments
Fiscal year ended March 31, 2011
There are no applicable items.

3. Information on amortization of goodwill and balance of goodwill of reportable segments
Fiscal year ended March 31, 2011
(Millions of yen)
Reportable segments
Other 1
MobileBroadband

Fixed-line

Communications

Infrastructure

Telecommunications

Internet Culture

Eliminationor corporate

Total

Subtotal

Amortization of goodwill¥51,427¥1,560¥7,283¥1,817¥62,088¥599¥-¥62,688

Balance of goodwill¥775,700¥3,119¥35,203¥21,515¥835,539¥3,699¥-¥839,238

Notes:
1. Fukuoka SOFTBANK HAWKS related business is included in “Other.”
2. Negative goodwill which occurred from a business combination before April 1, 2010 is offset by goodwill.

4. Information on gain on negative goodwill of reportable segments
Fiscal year ended March 31, 2011
There are no applicable items.

67

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the fiscal year ended March 31, 2011

(Per Share Data)
Fiscal year ended

Fiscal year ended

March 31, 2010

March 31, 2011

Shareholders’ equity per share (yen)¥434.74¥572.14

Net income per share - primary (yen)89.39

175.28Net income per share - diluted (yen)86.39

168.57

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)

Fiscal year ended

Fiscal year ended

March 31, 2010

March 31, 2011

96,716

189,71296,716

189,712--1,081,990,217

1,082,345,444

963

963

(30)

(87)

933

875

48,297,825

48,296,643

74,184712

3. Amounts not allocated to shareholders(in millions of yen)
4. Weighted average number of common stock outstanding
during each year (unit: shares)
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– Total48,372,009
Stock acquisition rights
agreement on June 22,2005 in accordance withspecial resolution at generalshareholders’meeting

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

68

48,297,355
Stock acquisition rights
agreement on June 22, 2005 inaccordance with special
resolution at generalshareholders’meeting and July29, 2010 in accordance withresolution at board meeting

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the fiscal year ended March 31, 2011

(Significant Subsequent Events)
Fiscal year ended March 31, 2010
There are no applicable items.
Fiscal year ended March 31, 2011
There are no applicable items.

69