SOFTBANK CORP.
CONSOLIDATED FINANCIAL REPORTFor the six-month period ended September 30, 2009
Tokyo, October 29, 2009

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%Six-month period ended
September 30, 2009

¥1,349,275

1.5¥230,621

28.1¥173,538

47.9¥70,75072.1

Six-month period ended
September 30, 2008

¥1,328,998-¥180,000-¥117,315-¥41,115-

Net income
per share－basic(yen)

Net income
per share－diluted(yen)

Six-month period ended
September 30, 2009

¥65.41¥63.02Six-month period ended
September 30, 2008

¥38.04¥36.20(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 September 30, 2009

¥4,347,144¥912,329

10.2¥409.46

As of March 31, 2009

¥4,386,672¥824,798

8.5¥346.11

Note: Shareholders’equity (consolidated)
As of September 30, 2009:
As of March 31, 2009:¥443,164 million¥374,094 million

2. Dividends(Record date)

First quarter

Fiscal year ended
March 31, 2009
Fiscal year ending
March 31, 2010
Fiscal year ending
March 31, 2010
(Forecasted)

Second quarter

Dividends per share
Third quarter

Fourth quarter

Total

(yen)

(yen)

(yen)

(yen)

(yen)

-

0.00

-

2.50

2.50

-

0.00
-

5.00

5.00

Revision of forecasts on the dividends: No1

3.

Forecasts on the consolidated operation results for the fiscal year ending in March 2010 (April 1, 2009 – March 31, 2010)(Percentages are shown as year-on-year changes)(Millions of yen)

Operating income
Full financial year

¥420,000

16.9(%)

Revision of forecasts on the consolidated operation results: No

4. Others(1) Significant Changes in Scope of Consolidation (Changes in Scope of Consolidation of Specified Subsidiaries):No(2) Application of simple accounting methods or special accounting methods for preparation for the consolidated financial
statements:
No(3) Changes in accounting principles, procedures, disclosure methods, etc., used in the presentation of the consolidated financial
statements (Changes described in “(5) Basis of Presentation of Consolidated Financial Statements”)[1] Changes due to revisions in accounting standards: No[2] Changes other than those in [1]: No(4) Number of shares issued (Common stock)[1] Number of shares issued (including treasury stock):
As of September 30, 2009:
As of March 31, 2009:

1,082,485,878 shares
1,081,023,978 shares[2] Number of treasury stock:
As of September 30, 2009:
As of March 31, 2009:

172,127 shares
169,204 shares[3] Weighted average number of common stock :As of September 30, 2009:
As of September 30, 2008:

1,081,663,503 shares
1,080,587,999 shares* Note to forecasts on the consolidated operating results and another item
The forecast figures are estimated based on the information which the company 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.

2

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the six-month period ended September 30, 2009

Qualitative Information / Financial Statements
1. Analysis of Results of Operations(1) Consolidated Results of Operations<Overview of results for the interim period of the fiscal year ending March 2010 (the six-month period from
April 1, 2009 to September 30, 2009)>
The SOFTBANK Group’s (hereafter ‘the Group’) telecommunications related businesses (the Mobile
Communications business, Broadband Infrastructure business, and Fixed-line Telecommunications business), thecore businesses of the Group, performed favorably. In particular, the Mobile Communications segment drove
consolidated revenue growth through an increase in subscribers and other contributions including a richer lineup ofmobile handsets and content to meet various customer needs, active sales initiatives such as the installment sales
method and diverse sales promotions, effective publicity activities and successful branding strategies.
The Group continues to reinforce its cash-flow-oriented management, as it made steady progress during the interim
period in achieving its previously stated targets of (1) generating a total of around ¥1 trillion in free cash flow*1
over the next three years (through the fiscal year ending March 2012) and (2) reducing net interest-bearing debt*2
by half over the next three years and to zero in six years (by the end of the fiscal year ending March 2015).
(Notes) *1 Cash flows from operating activities + cash flow from investing activities.
*2 Interest-bearing debt - cash position.
Interest-bearing debt = short-term borrowings + commercial paper + current portion of corporate bonds + corporate bonds+ long-term borrowings. Lease obligations are excluded.
Cash position = cash and cash deposits + marketable securities recorded as current assets.

Key factors of income and loss for the interim period were as stated below.
(a) Net Sales
Net sales for the interim period totaled ¥1,349,275 million, an increase of ¥20,277 million (1.5%) compared with
the interim period of the previous fiscal year ended March 2009 (hereafter ‘year-on-year’), primarily from ¥58,232
million in sales growth at the Mobile Communications segment.

The net sales growth at the Mobile

Communications segment was due to an increase in the number of mobile subscribers and growth of handset
shipments. Net sales at the e-Commerce segment were down ¥17,815 million, and at the Broadband Infrastructure
segment declined by ¥14,501 million.
(b) Cost of Sales
The Group’s cost of sales for the interim period declined ¥40,785 million (5.9%) year-on-year to ¥649,351 million, thiswas mainly due to a decline in the cost of goods associated with lower sales at the e-Commerce segment, and lower
depreciation and other costs at the Broadband Infrastructure segment due to an increase in fully depreciated assets. In
addition, telecommunication equipment usage fees paid by the Group’s telecommunications related businesses declined
due to a decrease in the access charge per second paid to other carriers. Despite a rise in handset shipments, a decline incost per unit resulted in a slight decrease in the aggregate cost of sales for mobile handsets year-on-year.

3

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the six-month period ended September 30, 2009(c) Selling, General and Administrative Expenses
Selling, general and administrative expenses for the interim period came to ¥469,302 million, for a ¥10,442 million(2.3%) year-on-year increase.

While sales commissions and sales promotions expenses increased along with net

sales growth, the Group was able to lower its expenses related to doubtful accounts (bad debt loss on doubtful
accounts + provision for allowance for doubtful accounts) as its Mobile Communications segment benefited fromthe implementation of stricter customer credit screening for new subscriber applicants.
(d) Operating Income
Operating income for the interim period rose ¥50,621 million (28.1%) year-on-year to ¥230,621 million.
(e) Non-operating Income
Non-operating income for the interim period was ¥6,367 million, an increase of ¥1,699 million (36.4%)
year-on-year. A ¥2,283 million gain from equity in earnings under the equity method was recorded (comparedwith a ¥2,421 million loss in the same period of the previous fiscal year) due to increased gains recorded at equity
method applied investment funds.
(f) Non-operating Expenses
Non-operating expenses for the interim period came to ¥63,451 million, a decrease of ¥3,901 million (5.8%) year-on-year.
This was mainly a result of ¥55,345 million in interest expenses, a decrease of ¥1,715 million year-on-year.
(g) Ordinary Income
Ordinary income for the interim period came to ¥173,538 million, an increase of ¥56,222 million (47.9%)
year-on-year.
(h) Special Income
Special income for the interim period totaled ¥5,981 million, the primary components of which were a ¥4,027
million gain from the sale of investment securities, and a ¥1,160 million dilution gain from change in equity
interest.
(i) Special Loss
The special loss incurred for the interim period came to ¥2,704 million, primarily from a ¥1,288 million valuation
loss on investment securities.
(j) Income Taxes and Minority Interest in Net Income
Provisions for income taxes, current and deferred, for the interim period were ¥48,823 million and ¥34,735 million,
respectively, and ¥22,506 million was recorded as minority interests in net income.
(k) Net Income for the Period
Net income for the interim period came to ¥70,750 million, for a ¥29,634 million (72.1%) year-on-year increase.

4

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the six-month period ended September 30, 2009

(2) Results by Business Segment(a) Mobile Communications(Millions of yen)Interim period of the fiscal year
ended March 2009

Interim period of the fiscal year
ending March 2010

YoY

YoY
(%)

Net sales

773,961

832,193

58,232

7.5

Operating income

88,164

131,776

43,611

49.5-Operating income increased 49.5% year-on-year to ¥131,776 million.
-Net subscriber additions totaled 684,000 for the interim period.
-ARPU*3 for the second quarter increased by ¥120 to ¥4,150, compared to the previous quarter.
<Analysis of Results>
Net sales for the Mobile Communications segment were ¥832,193 million, up ¥58,232 million (7.5%) year-on-year.
Operating expenses rose by ¥14,620 million (2.1%) year-on-year to ¥700,417 million.

As a result, operating

income for the interim period rose ¥43,611 million (49.5%) year-on-year to ¥131,776 million.
Major elements on income and loss were as follows.
Net sales・ Telecom service revenue increased along with the increase in the number of mobile subscribers.
・ As a result of an increase in the number of upgrades (model change), the number of handset shipments
grew.

This resulted in an increase in sales of mobile handsets.

Cost of sales
・ Although the amount of handset shipments increased, there was a decline in the cost per unit resulting ina slight decrease in the aggregate handset cost of sales.
・ Telecommunication equipment usage fees decreased as the access charge per second of other carriers
declined.
SG&A
・ Sales commissions and sales promotion expenses rose, reflecting an increase in the number of handsets
sold, and an increase in the sales commissions per user for new and upgrade handsets due to the change
in handset mix.
・ Expenses related to doubtful accounts (bad debt loss on doubtful accounts + provision for allowance for
doubtful accounts) largely declined, as collection efforts benefited from the implementation of stricter
customer credit screenings for new subscribers in July 2008.
（Note） *3 Average Revenue Per User.
Revenue and number of subscribers includes prepaid and number of communication module service subscribers.

5

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the six-month period ended September 30, 2009

<Number of Mobile Phone Subscribers>
Net subscriber additions (new subscribers minus cancellations) at SOFTBANK MOBILE Corp. (hereafter‘SOFTBANK MOBILE’), the core company of the Mobile Communications segment, totaled 684,000 during theinterim period, allowing SOFTBANK MOBILE to maintain its top position*4 in net additions for the 10thconsecutive quarter from the first quarter ended June 2007, as well as its No. 1 position for the interim period*4.
The number of SOFTBANK MOBILE subscribers totaled 21,316,900*5 as of the end of the second quarter, of
which 3G subscribers surpassed the 20 million mark at 20,237,700.

Cumulative subscriber share rose 0.7*4percentage points year-on-year to 19.4% . SOFTBANK MOBILE continues to promote the migration to 3G inadvance of the scheduled termination of its 2G service on March 31, 2010.

As of the end of the interim period, thenumber of 2G subscribers totaled 1,079,200, of which 572,200 were postpaid subscribers and 506,900 were prepaid
subscribers.
（Notes） *4 Calculated by SOFTBANK CORP. based on Telecommunications Carriers Association statistical data.
*5 The total number of subscribers for SOFTBANK MOBILE includes communication module service subscribers. The
number of communication module service subscribers at the end of the second quarter was 168,100.
(Thousands of lines)
Fiscal year ended March 31, 2009
Q1

Q2

Fiscal year ending March 31, 2010

Q3

Q4

Q1

Q2

Q3

Q4

Net additions

525.5

521.4

366.6

633.1

323.3

360.7

—

—

Total

19,111.7

19,633.2

19,999.8

20,632.9

20,956.2

21,316.9——<ARPU and Average Acquisition Commission per User>
ARPU for the second quarter was ¥4,150, which was ¥20 lower year-on-year but ¥120 higher than in the previous
quarter.
The basic monthly charge plus voice ARPU declined ¥300 year-on-year to ¥2,160, but was ¥10 higher compared tothe previous quarter.

This was the result of an increase in the number of White Plan subscribers and a fiercer

competition in the corporate market.
Data ARPU for the second quarter rose ¥280 year-on-year to ¥1,990.

This was due to the increased popularity ofmobile handsets optimized for data telecommunications use, including the iPhoneTM*6, and the increase in usage ofvideo content by customers. In addition, data ARPU for the second quarter rose ¥110 from the previous quarterdue to the increased data telecommunications usage by customers.
The average acquisition commission per user during the second quarter increased by ¥400 year-on-year to ¥35,900.
This was ¥14,200 lower than in the previous quarter, but this was a reflection of a change in handset mix and theend of the effect from corporate sales strategies that emerged in the previous quarter.
(Note) *6 iPhone is a trademark of Apple Inc.
The ‘iPhone’ trademark is used under license from Aiphone K.K.

6

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the six-month period ended September 30, 2009

(Yen per month)Fiscal year ended March 31, 2009
Q1
ARPU
(Basic monthly
charge + voice)(Data)

Q2

Q3

Fiscal year ending March 31, 2010
Q4

Q1

Q2

Q3

Q4

4,180

4,170

4,090

3,830

4,030

4,150

—

—

2,530

2,460

2,300

2,020

2,150

2,160

—

—

1,650

1,710

1,790

1,820

1,880

1,990

—

—

<Churn Rate and Upgrade Rate>
The churn rate*7 for the second quarter was 1.24%, which was 0.26 percentage point higher year-on-year and 0.19
percentage point higher than in the previous quarter.

This was primarily because of cancellations by some low-use

subscribers, and the cancellation of certain corporate contracts.
The upgrade rate*7 for the second quarter decreased by 0.1 percentage point year-on-year to 1.81%, but rose 0.08
percentage point from the previous quarter.
(Note) *7 Includes module service subscribers.
(% per month)Fiscal year ended March 31, 2009
Q1

Q2

Q3

Fiscal year ending March 31, 2010
Q4

Q1

Q2

Q3

Q4

Churn rate

0.98

0.98

0.91

1.13

1.05

1.24

—

(3G only)*8

0.72

0.76

0.69

0.90

0.87

1.07

—

—
—

Upgrade rate

1.27

1.91

1.67

1.98

1.73

1.81

—

—

(Note) *8 Excludes prepaid handsets.

<New Models Released During the Second Quarter>
SOFTBANK MOBILE announced the release of 19 summer models in 61 colors—a company record—in May
2009, and eight of these models in 23 colors were released during the second quarter.
*9

WIDGET-compatible

The number of MOBILE

handsets increased, with four of these eight models, including the VIERA

Keitai® ’SoftBank 931P’ and the ‘SOLAR HYBRIDTM SoftBank 936SH,’ being MOBILE WIDGET-compatible.
The number of MOBILE WIDGET-compatible handsets in use surpassed one million in August 2009.
(Note) *9 Application that appears on a mobile handset’s standby screen, and allows one-touch access to the desired information.

<New Content Services Launched During the Second Quarter>
SOFTBANK MOBILE aims to further popularize ‘mobile content,’ and strives to expand easy-to-use mobile
content and related services.

May 2009 saw the full-fledged release of Simple Select Video, which makes it easy toenjoy video content like the S-1 BATTLE (stand-up comedy), baseball, soccer, and entertainment news via e-mail.
The number of subscribers to this service surpassed one million in July 2009 and continues to grow.
SOFTBANK MOBILE also launched the Gift-Otokubin in January 2009.

This service provides useful

information, including promotional campaigns, discount coupons, free content, and gifts, via a weekly email, andthe number of subscribers surpassed two million in October 2009.

7

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the six-month period ended September 30, 2009

<New Campaigns Launched During the Second Quarter >SOFTBANK MOBILE introduced its White Plan Student & Family Discount during the interim period as amarketing initiative.

This promotion halves the basic monthly charge of White Plan to 490 yen (including tax) for

the first three years upon a new subscription for students and their family members.

As a new marketing initiative,

SOFTBANK MOBILE introduced the Norikae Switchover Discount in September 2009, in which the White Plan’sbasic monthly charge is waived for five months.

In addition, Unlimited Packet Discount S was introduced in July

2009, which provides user-friendly e-mail and mobile Internet use for as little as ¥390 per month.
SOFTBANK MOBILE extended the application deadline for the iPhone for everybody campaign until January 2010.

(b) Broadband Infrastructure(Millions of yen)Interim period of the fiscal year
ended March 2009

Interim period of the fiscal year
ending March 2010

Net sales

120,038

105,537(14,501)(12.1)

Operating income

22,26527,230

4,965

22.3

YoY
(%)

YoY

-Total installed lines for Yahoo! BB ADSL: 4,040,000 (as of the end of the interim period).
-Increased the operating margin by reducing sales related expenses etc.
<Overview of Operations>
Net sales totaled ¥105,537 million, which was down ¥14,501 million (12.1%) year-on-year. The trend towards
lower sales continues because of a decline in the number of lines installed in the ADSL business of SOFTBANKBB Corp. (hereafter ‘SOFTBANK BB’), the core company of the Broadband Infrastructure segment.
Nevertheless, operating income rose ¥4,965 million year-on-year (22.3%) to ¥27,230 million.

The trend of profit

growth continues because of decreases in acquisition incentives and other sales related expenses, lower depreciation
expenses for telecommunication equipment, and reduced leasing expenses, in combination with cost reduction
initiatives.
The number of lines installed for Yahoo! BB ADSL, the comprehensive broadband service provided by SOFTBANK
BB, totaled 4,040,000 lines as of the end of the interim period, and ARPU for the second quarter was ¥4,255 on acustomer payment basis.
SOFTBANK BB continued to market the Yahoo! BB White Plan and SoftBank Keitai Set Discount. As in thefiscal year ended March 2009 (hereafter ‘the previous fiscal year’), SOFTBANK BB continued cross-selling withSOFTBANK MOBILE and is creating synergies across the Group, leading to enhanced competitiveness.

8

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the six-month period ended September 30, 2009(c) Fixed-line Telecommunications(Millions of yen)Interim period of the fiscal year
ended March 2009

Interim period of the fiscal year
ending March 2010

Net sales

178,458

172,609(5,848)(3.3)

Operating income

5,557

7,830

2,272

40.9

YoY
(%)

YoY

-Total installed lines for OTOKU Line: 1,652,000 (as of the end of interim period).
-As a result of fixed cost reductions and an increase in the number of lines for OTOKU Line, operating
income increased 40.9% year-on-year.
<Overview of Operations>
Net sales were ¥172,609 million, down ¥5,848 million (3.3%) year-on-year.
million, an increase of ¥2,272 million (40.9%) year-on-year.

Operating income totaled ¥7,830

Net sales decreased mainly as a result of the related

sales of SOFTBANK IDC Solutions Corp. being included in the Internet Culture segment starting from this interim
period.

SOFTBANK IDC Solutions Corp., which was a subsidiary under the Fixed-line Telecommunications

segment until the previous fiscal year, is included under the Internet Culture segment as a result of the company’s
merger with Yahoo Japan Corporation (hereafter ‘Yahoo Japan’) on March 20, 2009.
At SOFTBANK TELECOM Corp. (hereafter ‘SOFTBANK TELECOM’), the core company of the Fixed-line
Telecommunications segment, revenue from the OTOKU Line direct connection fixed-line voice service, etc.,
continued to show steady growth, but the downward trend in revenue from existing voice services, including MY
LINE and international telephone services, continued.

Nevertheless, the segment is showing a trend of profit

growth due to improved management efficiency, including continued fixed cost reductions, and to growth in thenumber of lines with high profitability, such as OTOKU Line and Ether Connect.
As the Group’s primary contact point for corporate marketing of the Group’s telecommunications-related
businesses, SOFTBANK TELECOM continues to leverage its core OTOKU Line service to expand the base of thecorporate business.

The number of OTOKU Line lines installed is increasing steadily and stood at 1,652,000 as ofthe end of the interim period, for an increase of 154,000 (10.3%) year-on-year.

Corporate customers were 79.9%of the total number of lines, and this figure continues to rise.
SOFTBANK TELECOM continued to expand its corporate FMC*10 services, including White Office and White Line
24 discount service, to develop and provide solutions for corporate customers.

SOFTBANK TELECOM will keep

working to enhance synergies with the Mobile Communications segment and further strengthen the corporate
business.
(Note) *10 FMC: Fixed Mobile Convergence service, telecommunications services that integrate the functions of mobile
communications and fixed-line telecommunications.

9SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the six-month period ended September 30, 2009(d) Internet Culture(Millions of yen)Interim period of the fiscal year
ended March 2009

Interim period of the fiscal year
ending March 2010

Net sales

125,586

131,129

5,543

4.4

Operating income

61,18864,154

2,965

4.8

YoY

YoY
(%)

<Overview of Operations>
Net sales increased by ¥5,543 million (4.4%) year-on-year to ¥131,129 million. Operating income rose ¥2,965
million (4.8%) year-on-year to ¥64,154 million.
In the advertising business of Yahoo Japan, the core company of the segment, there was a large decline inadvertisement submissions from major advertisers in some industries, such as recruitment services, compared to thesame period of last fiscal year. On the other hand, there were signs of recovery on the declining trend in theindustries including automobile and real estate. In combination with an increase in the sales of Interest Matchadvertising, this resulted in an overall sales increase in listing advertisement. As a result, net sales of theadvertising business slightly decreased.
In the business services of Yahoo Japan, a ten year anniversary sale of Yahoo! Shopping was offered andpromoted. As a result of expanded use of this sale, shopping related transaction volumes amounted to a record
high for the second quarter. The upward revision of the store royalties that began in December of 2008, and themerger with SOFTBANK IDC Solutions Corp., the data center business, contributed to the significant year-on-year
revenue growth in the business services.
In the personal service business of Yahoo Japan, although the Yahoo! Premium ID membership fee was raised in
December 2008, the number of members continued to increase. Further efforts to improve exclusive services formembers lead their number to a record high at the end of September 2009 at 7.5 million ID’s (a year-on-yearincrease of 4.5%). Although the number of transactions via mobile increased for Yahoo! Auctions, the closing
price on auctions decreased affected by the economic stagnation. The transaction volume was also impacted by theholyday period in September and decreased overall. In pay content services, Yahoo! Partner and Yahoo! Games
increased.

As a result, net sales in the personal service business increased year-on-year.

10

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the six-month period ended September 30, 2009(e) e-Commerce(Millions of yen)Interim period of the fiscal year
ended March 2009

Interim period of the fiscal year
ending March 2010

Net sales

127,981

110,166(17,815)(13.9)

Operating income

2,747

2,161

(585)

(21.3)

YoY
(%)

YoY

<Overview of Operations>
Net sales were ¥110,166 million, which was ¥17,815 million (13.9%) lower year-on-year.

Operating income

declined ¥585 million (21.3%) year-on-year, to ¥2,161 million.
The Commerce & Service Division of SOFTBANK BB, this segment’s core company, worked to expand thenumber of products and the number of stores handling the SoftBank SELECTION, which provides mobile phone
accessories and PC software. Although SoftBank SELECTION sales increased, the deterioration in the market
environment caused a decline in corporate sales.

As a result, net sales declined.

On the other hand, services thatare expected to contribute to future revenues, such as the corporate virtual service, also recorded increased sales.
Looking ahead to the era of cloud computing, this segment will continue to use the SOFTBANK brand in order toenhance the product mix and will strive to bolster corporate services packaged around telecommunication lines.
In these ways, the segment will pursue further synergies in the Group’s telecommunications related businesses.

(f) Others(Millions of yen)Interim period of the fiscal year
ended March 2009

Interim period of the fiscal year
ending March 2010

Net sales

46,00842,632(3,375)(7.3)

Operating income(ｌoss)

2,624

(160)

(2,785)

-

YoY

YoY
(%)

<Overview of Operations>
Net sales decreased by ¥3,375 million (7.3%) year-on-year to ¥42,632 million.

The operating loss was ¥160

million, compared with the ¥2,624 million operating income in the same period of the previous fiscal year.
This segment includes the results of Technology Services (SOFTBANK TECHNOLOGY CORP.), the Media &Marketing (mainly SOFTBANK Creative Corp. and ITmedia Inc.), the Overseas Funds, and Others (Fukuoka
SOFTBANK HAWKS related operations, etc.)

11

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the six-month period ended September 30, 2009

(3) Analysis by Geographic Segment(a) Japan
Net sales increased by ¥23,069 million (1.7%) year-on-year to ¥1,345,128 million.

Operating income rose ¥53,522

million (29.6%) year-on-year to ¥234,211 million.
(b) North America
Net sales declined by ¥43 million (7.6%) year-on-year to ¥525 million.

The operating loss was ¥471 million(compared with ¥2,910 million in operating income in the same period of the previous fiscal year).
(c) Others
Net sales declined by ¥2,742 million (41.6%) year-on-year to ¥3,847 million.

The operating loss was ¥271 million(compared with ¥238 million operating loss in the same period of the previous fiscal year).

<Reference: Overview of results for the second quarter of the fiscal year ending March 2010 >(Millions of yen)
YoY(%)

Second Quarter (July – Sept. 30, 2008)
fiscal year ended March 31, 2009

Second Quarter (July – Sept. 30, 2009)
fiscal year ending March 31, 2010

Net sales

681,742

682,941

1,199

0.2

Operatingincome94,913

122,331

27,417

28.9

Ordinary income

63,043

94,74031,69750.3

Net income

21,74743,366

21,61999.4

YoY

Net sales for the second quarter of the fiscal year ending March 2010 (three-month period from July 1, 2009 to
September 30, 2009) rose ¥1,199 million (0.2%) year-on-year to ¥682,941 million. Operating income rose ¥27,417
million (28.9%) year-on-year to ¥122,331 million, and ordinary income increased by ¥31,697 million (50.3%)
year-on-year to ¥94,740 million. Net income for the second quarter rose ¥21,619 million (99.4%) to ¥43,366 million.

Results by business segment were as follows:[Mobile Communications]
Net sales increased ¥23,513 million (5.9%) year-on-year to ¥424,888 million. Operating income rose ¥27,625 million(62.9%) year-on-year to ¥71,515 million, primarily from the growth in telecom service revenue achieved due to anincrease in the number of subscribers and from the growth in shipments of mobile handsets at SOFTBANK MOBILE.

12SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the six-month period ended September 30, 2009

[Broadband Infrastructure]
Net sales decreased ¥8,180 million (13.7%) year-on-year to ¥51,731 million.

Operating income increased ¥1,537

million (13.0%) year-on-year to ¥13,326 million. Although revenue declined on a decrease in the total number oflines in use at SOFTBANK BB’s ADSL division, the profit growth trend continued on lower depreciation expenses
for telecommunication equipment and leasing expenses.
[Fixed-Line Telecommunications]
Net sales declined ¥4,154 million (4.6%) year-on-year to ¥85,851 million, and operating income declined by ¥422
million (8.9%) year-on-year to ¥4,336 million.

SOFTBANK TELECOM maintained revenue growth from theOTOKU Line direct connection fixed-line voice service, but the trend of lower revenue from existing voice services
like MYLINE continued.

At the same time, however, the profit growth trend was maintained on ongoing fixed cost

reductions and increased management efficiency.
[Internet Culture]
Net sales rose ¥2,714 million (4.3%) year-on-year to ¥65,973 million.

Operating income came to ¥32,436 million,

for a ¥1,791 million (5.8%) year-on-year increase.
[e-Commerce]
Net sales declined ¥9,569 million (14.6%) year-on-year to ¥55,952 million, and operating income was ¥1,221 million
a decline of ¥516 million (29.7%) year-on-year.
[Others]
Net sales declined ¥2,223 million (9.2%) year-on-year to ¥21,965 million, and operating income came to ¥719 million,a decline of ¥2,664 million (78.7%) year-on-year.

Results by geographic segment were as follows:[Japan]Net sales rose ¥2,779 million (0.4%) year-on-year to ¥680,758 million, and operating income was ¥30,396 million(32.5%) higher year-on-year at ¥123,988 million.
[North America]
Net sales declined ¥4 million (1.6%) year-on-year to ¥266 million, and operating loss came to ¥156 million(compared to ¥3,197 million in operating income for the same period of the previous fiscal year).
[Others]
Net sales declined ¥1,545 million (43.0%) year-on-year to ¥2,048 million, and operating loss totaled ¥93 million,(compared to a ¥169 million operating loss recorded in the same period of the previous fiscal year).

13

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the six-month period ended September 30, 2009

2. Analysis of Financial Position(1) Assets, Liabilities and Equity
Assets, liabilities, and equity at the end of the interim period were as follows:(Millions of yen)
At the end of the interim period of the

At the end of the fiscal year ended

fiscal year ending March 2010

March 2009

YoY
(%)

YoY

Total assets

4,347,144

4,386,672(39,528)(0.9)

Total liabilities

3,434,814

3,561,873(127,059)(3.6)

Total Equity

912,329824,798

87,531

10.6(a) Current Assets
Current assets increased by ¥39,127 million (2.6%) from the end of the previous fiscal year, to ¥1,559,441 million.
The main contributing factors were as follows.
• Cash and deposits increased by ¥117,881 million from the end of the previous fiscal year.

While SOFTBANK

CORP. (hereafter ‘the Company’) received proceeds of ¥155,000 million from June to September 2009 from theissuance of its 27th, 28th and 29th Unsecured Straight Corporate Bonds, this was partially offset by ¥92,900
million used to repay borrowings.

Consequently, there was an increase of ¥54,802 million at the Company. In

addition, an increase by ¥51,901 million in Yahoo Japan resulted in an increase of cash and deposits.
• Notes and accounts receivable–trade decreased ¥55,704 million from the end of the previous fiscal year.

This

decrease was primarily from collecting accounts receivable from the year-end sales season in the previous fiscal
year at the Mobile Communications and e-Commerce segments, and from collecting accounts receivable frominstallment sales of handsets at the Mobile Communications segment.
• Deferred tax assets declined ¥26,735 million from the end of the previous fiscal year due to the utilization of loss
carryforwards at SOFTBANK BB and BB MOBILE Corp.
(b) Fixed Assets
Fixed assets decreased by ¥79,653 million (2.8%) from the end of previous fiscal year, to ¥2,785,382 million.

The

major contributing factors were as follows.
• Property and equipment, net declined ¥32,184 million from the end of the previous fiscal year.

This decline

was principally attributable to depreciation of telecommunication equipment and telecommunication service lines
at the Mobile Communications and Fixed-line Telecommunications segments.
• Intangible assets decreased by ¥38,054 million from the end of the previous fiscal year.

This was mainly due toa decrease in goodwill of ¥31,424 million caused by the regular amortization at SOFTBANK MOBILE andSOFTBANK TELECOM, and from amortization of software.

14

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the six-month period ended September 30, 2009(c) Current Liabilities
Current liabilities decreased by ¥108,536 million (8.0%) from the end of the previous fiscal year to ¥1,241,046
million.

The principal contributing factors were as follows.

• Short-term borrowings declined by ¥185,069 million from the end of the previous fiscal year.

This wasprimarily attributable to a decline of ¥160,000 million from the repayment of borrowings under the credit line
facility.
• Current portion of corporate bonds increased by ¥54,400 million.

This was the result of the transfer of the 22ndand 24th Unsecured Straight Corporate Bonds from long-term liabilities (corporate bonds).
• Income taxes payable increased ¥31,297 million.

This was mainly because Yahoo Japan recorded only a small

amount of taxes payable at the end of the previous fiscal year, due to the utilization of loss carryforwards.
• Accounts payable–other and accrued expenses declined by ¥14,194 million.

This decrease reflected

SOFTBANK MOBILE’s payments of agent commissions from the previous fiscal year’s year-end sales season
and from payments of equipment-related payables, while ¥75,000 million was transferred from long-term
liabilities. This long-term accounts payable of ¥75,000 million, relating to the additional entrustment for debt
assumption of bonds*11 recorded at the end of previous fiscal year, was transferred due to the maturity within one
year.
(Note) *11 Refer to P.30.

(d) Long-term Liabilities
Long-term liabilities decreased by ¥18,522 million (0.8%) from the end of the previous fiscal year to ¥2,193,768
million.

The principal contributing factors were as follows.

• Corporate bonds outstanding increased by ¥93,937 million from the end of the previous fiscal year.

The 22ndand 24th Unsecured Straight Corporate Bonds were transferred to current liabilities (total of ¥54,400 million),while the Company issued the 27th, 28th, and 29th Unsecured Straight Corporate Bonds, totaling ¥155,000 million.
• Long-term debt decreased by ¥18,320 million from the end of the previous fiscal year, primarily as a result of
repayment of the SBM loan*12 totaling ¥65,877 million at SOFTBANK MOBILE and ¥10,000 million
transferred to current liabilities at Yahoo Japan.

This was partially offset by an increase of ¥67,600 million in

long-term borrowings by the Company during the interim period.
• Lease obligations decreased by ¥16,448 million from the end of the previous fiscal year.

This was the result of

the transfer to current liabilities of the current portion of lease obligations related to telecommunicationequipment at SOFTBANK MOBILE.
• Other liabilities decreased by ¥78,194 million from the end of the previous fiscal year.

This was primarily

attributable to the transfer to current liabilities of ¥75,000 million in long-term accounts payable recorded by
SOFTBANK MOBILE at the end of the previous fiscal year due to the maturity within one year.
(Note) *12 The acquisition funds for the acquisition of Vodafone K.K. were refinanced in November 2006 via a whole businesssecuritization.

15

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the six-month period ended September 30, 2009(e) Equity
Equity increased ¥87,531 million (10.6%) from the end of the previous fiscal year, to ¥912,329 million.

Retainedearnings increased ¥68,427 million, and as a result, the accumulated deficit was shifted to retained earnings of¥17,158 million as of the end of the interim period.

In addition, unrealized gain on available-for-sale securities

increased ¥12,964 million, while deferred gain on derivatives under hedge accounting declined ¥12,499 million.
The increase in the unrealized gain on available-for-sale securities was primarily from the rise in the share price ofYahoo! Inc. in the U.S. from the end of the previous fiscal year.

(2) Cash FlowsNet cash provided by operating activities during the interim period totaled ¥315,341 million (compared with net cash
provided by operating activities of ¥177,206 million in the same period of the previous fiscal year). Net cash used ininvesting activities was ¥138,241 million (compared with net cash used in investing activities of ¥165,103 million in
the same period of the previous fiscal year), and net cash used in financing activities was ¥59,096 million (comparedwith net cash used in financing activities of ¥81,943 million in the same period of the previous fiscal year). As aresult, free cash flow (the combined net cash flows from operating activities and investing activities) for the interim
period was a positive ¥177,099 million (compared with a net outflow of ¥12,102 million in the same period of theprevious fiscal year), for a significant increase of ¥164,996 million year-on-year.
Cash and cash equivalents at the end of the interim period totaled ¥573,424 million, a ¥115,779 million increase fromthe end of last fiscal year.
(Millions of yen)Interim period of the fiscal year
ended March 2009

Interim period of the fiscal year
ending March 2010

Difference

Cash flows from operating activities

177,206

315,341

138,134

Cash flows from investing activities(165,103)(138,241)

26,861

12,102

177,099

164,996(81,943)(59,096)

22,847(Reference) free cash flow
Cash flows from financing activities(a) Cash Flows from Operating Activities:
Net cash provided by operating activities totaled ¥315,341 million (compared with net cash provided by operating
activities of ¥177,206 million in the same period of the previous fiscal year).
Income before income taxes and minority interests totaled ¥176,815 million, while non-cash items included
depreciation and amortization of ¥120,075 million and amortization of goodwill of ¥30,557 million.

In terms ofworking capital, a decline in receivables–trade had a positive impact of ¥63,499 million which includes the impact of

16

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the six-month period ended September 30, 2009securitizing ¥10,000 million in sales of installment sales receivables at the end of the interim period.

In addition, adecline in accounts payables–trade had a negative impact of ¥2,096 million.
Income taxes paid for the interim period was ¥17,345 million, a ¥15,704 million decrease year-on-year. Thisdecrease in income taxes paid was due to the fact that Yahoo Japan utilized loss carryforwards assumed fromSOFTBANK IDC Solutions Corp. when they merged on March 30, 2009.
(b) Cash Flows from Investing Activities:
Net cash used in investing activities was ¥138,241 million (compared with net cash used in investing activities of¥165,103 million in the same period of the previous fiscal year).
Due to capital expenditure, mainly on telecommunications related businesses, purchases of property and equipment
and intangibles totaled ¥144,149 million.

For the interim period, purchases of marketable and investment securities

totaled ¥12,114 million, while proceeds from sales of marketable and investment securities came to ¥15,561 million.
(c) Cash Flows from Financing Activities:
Net cash used in financing activities was ¥59,096 million (compared with net cash used in financing activities of¥81,943 million in the same period of the previous fiscal year).
Proceeds from long-term debt totaled ¥201,727 million, proceeds from issuance of bonds were ¥153,627 million, andproceeds from leasing newly acquired equipment totaled ¥38,977 million.

On the other hand, repayments totaled¥250,138 million for long-term debt, and the change in short-term borrowings, net was a ¥148,581 million decrease.
In addition, an outflow of ¥44,562 million for repayment of lease obligations was recorded.

17

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the six-month period ended September 30, 2009

[Reference](1) Major Investing Activities
The major investing activities in the interim period were as follows:
Month of Investment

Investee Company

Investor Company

Net Cash Outflow(Cum. invested amount)July 2009

Oak Pacific Interactive

SOFTBANK CORP.

¥5, 082 million(¥15,323 million)

Voting rights(Total as of Sept
2009)
5.1%
(19.2%)(2) Major Financing Activities
The major financing activities in the interim period were as follows:
Item
Issue bonds

Company NameSOFTBANK CORP.

Details
Issue of the 27th Unsecured
Straight Corporate Bond
(Fukuoka SoftBank
HAWKS Bond)

Issue of the 28th Unsecured
Straight Corporate Bond

Issue of the 29th Unsecured
Straight Corporate Bond
(Fukuoka SoftBank
HAWKS Bond)

Securitization ofreceivables

SOFTBANKMOBILE Corp.

Procurement of funds totaling¥70,247 million accompanying
securitization of mobile phone
installment sales receivables(recorded as borrowings)
Procurement of funds totaling¥49,956 million accompanying
securitization of mobile phone
installment sales receivables(recorded as borrowings)

Increase or
decrease in debt
(excluding
securitization ofreceivables)

Capital expenditureby financial lease

SOFTBANK CORP.
SOFTBANKMOBILE Corp.
SOFTBANKTELECOM Corp.
Yahoo Japan
Corporation
SOFTBANKMOBILE Corp. etc.

Decrease ¥92,900 million (net)Decrease ¥65,877 million

Summary
Issue date: June 11, 2009
Redemption date: June 10, 2011
Procured amount: ¥60,000 million
Interest rate: 5.10%/year
Use: Redemption of bonds and repayment ofborrowings
Issue date: July 24, 2009
Redemption date: July 24, 2012
Procured amount: ¥30,000 million
Interest rate: 4.72%/year
Use: Redemption of bonds and repayment ofborrowings
Issue date: September 18, 2009
Redemption date: September 18, 2012
Procured amount: ¥65,000 million
Interest rate: 4.52%/year
Use: Redemption of bonds and repayment ofborrowings
Procurement date: June 30, 2009
Redemption method:monthly pass-through repayment
Use: capital expenditure and repayment of funds
raised via the whole business securitization
financing scheme
Procurement date: September 30, 2009
Redemption method:monthly pass-through repayment
Use: capital expenditure and repayment of funds
raised via the whole business securitization
financing scheme
Repayment of funds raised via the wholebusiness securitization financing scheme

Decrease ¥20,048 million
Decrease ¥10,000 million
Capital expenditure mainly at
the Mobile Communications
business by utilizing lease.

18

Funds procured during the interim period:¥38,977 million.

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the six-month period ended September 30, 2009

3. Earnings Forecasts
The Group is forecasting consolidated operating income of ¥420,000 million.
The Group will endeavor to achieve this forecast and further increase in earnings, primarily at the Mobile
Communications segment where sales have been strong.
<Earnings Forecasts>

Consolidated operating income(Millions of yen)
Forecast
Fiscal year ending March 31, 2010 (FY2009)
420,000

Consolidated net sales are greatly influenced by the sales method used by the Group for mobile handsets, whichmakes it difficult to forecast business results.

In addition, the Company holds a variety of investment securities andinvests in funds that are vulnerable to the market environment, making it difficult to estimate earnings under theequity method and the special income/loss, and for this reason, meaningful earnings forecasts for consolidated
ordinary income and consolidated net income cannot be provided at this time.

19

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the six-month period ended September 30, 2009

4. The SOFTBANK GroupAs of September 30, 2009, the Group was comprised of the Company (pure holding company) and the following
nine business segments.

The number of consolidated subsidiaries and equity method companies in each businesssegment was as follows.
Consolidated
subsidiaries

Equity method
non-consolidated
subsidiaries andaffiliates

Mobile Communications

6

2

Broadband Infrastructure

6

1

Fixed-line Telecommunications

3-

Internet Culture

19

11

e-Commerce

7

4

Others

69

45

110

63

Business segments

Total

Main business of segment and name of business

Provision of mobile communication services and sale of mobile
phones accompanying the services etc.
(Core company: SOFTBANK MOBILE Corp.)
Provision of ADSL and fiber-optic high-speed Internet connection
service, IP telephony service, and provision of content etc. (Corecompany: SOFTBANK BB Corp.(*13))
Provision of fixed-line telecommunications etc.
(Core companies: SOFTBANK TELECOM Corp. (*13))
Internet-based advertising operations, portal business andauction business etc.
(Core company: Yahoo Japan Corporation (*13))
Distribution of PC software and hardware including PCs andperipherals, enterprise solutions, and diversified e-commercebusinesses, including business transaction platforms (B2B)
and consumer-related e-commerce (B2C) etc.
(Core companies: SOFTBANK BB Corp. (*13) Vector Inc.,
Carview Corporation)
Technology Services, Media & Marketing, Overseas Funds,
and Other businesses(Core companies: SOFTBANK TECHNOLOGY CORP.,SOFTBANK Creative Corp., ITmedia Inc., Fukuoka
SOFTBANK HAWKS Marketing Corp.)（Note）*13 SOFTBANK BB Corp., SOFTBANK TELECOM Corp. and Yahoo Japan Corporation are included in as consolidated
subsidiaries in the Broadband Infrastructure, Fixed-line Telecommunications and Internet Culture segments,
respectively, while SOFTBANK BB Corp., SOFTBANK TELECOM Corp. and Yahoo Japan Corporation operate
multiple businesses and their operating results are allocated to multiple business segments.

［Listed Companies］
The following 5 SOFTBANK subsidiaries were listed on domestic stock exchanges as of September 30, 2009:
Company Name

Listed ExchangeYahoo Japan Corporation

Tokyo Stock Exchange 1st section
Jasdaq Securities Exchange

SOFTBANK TECHNOLOGY CORP.

Tokyo Stock Exchange 1st section

Vector Inc.

Osaka Securities Exchange Hercules

ITmedia Inc.

Tokyo Stock Exchange Mothers

Carview Corporation

Tokyo Stock Exchange Mothers

20

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the six-month period ended September 30, 2009

5. Others(1) Significant Changes in Scope of Consolidation (Changes in Scope of Consolidation of Specified Subsidiaries)
There are no significant changes in scope of consolidation.
(2) Application of simple accounting methods or special accounting methods for preparation for the consolidated financial
statements
There are no applicable items.
(3) Changes in accounting principles, procedures, disclosure methods, etc., used in the presentation of the consolidated
financial statements
There are no applicable items.

21

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the six-month period ended September 30, 2009

6. Consolidated Financial Statements(1) Consolidated Balance Sheets(Millions of yen)
As of
September 30, 2009

As ofMarch 31, 2009

AmountAmountASSETS
Current assets:
Cash and deposits
Notes and accounts receivable - tradeMarketable securities¥575,835¥457,953

802,380

858,084

3,942

2,917

Merchandise and finished products

40,79242,320

Deferred tax assets

66,28593,021Other current assets
Less:
Allowance for doubtful accounts
Total current assets

115,074

114,874(44,870)(48,858)

1,559,441

1,520,313

Buildings and structures

70,916

71,577

Telecommunications equipment

719,753738,967

Telecommunications service lines

76,133

79,637

Land

22,57522,576

Construction in progress

30,87237,477

Other property and equipment

48,50950,710Total property and equipment

968,761

1,000,946

Goodwill

925,306

956,730

Software219,999

226,131

Other intangibles

38,74839,245

1,184,054

1,222,108

341,499

320,102

149,456

158,228

170,375

200,749(28,764)
632,566
2,785,382(37,100)
641,980
2,865,036

2,320

1,322

¥4,347,144¥4,386,672

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

22

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the six-month period ended September 30, 2009

Consolidated Balance Sheets(Millions of yen)
As of
September 30, 2009

As ofMarch 31, 2009

AmountAmountLIABILITIES AND EQUITYCurrent liabilities:
Accounts payable - trade
Short-term borrowings¥158,065¥160,339

390,463575,532

Commercial paper

3,000

-

118,400

64,000337,976

352,171

Income taxes payable

52,66021,363Current portion of lease obligations

99,49988,241Other current liabilities

80,98187,935

Total current liabilities

1,241,046

1,349,583

Corporate bonds

418,503

324,566

Long-term debt

1,417,972

1,436,292

Deferred tax liabilities

28,55528,795

Liability for retirement benefits

15,91816,076

Allowance for point mileage

42,71941,816

Lease obligations

216,865

233,314

Other liabilities

53,233

131,428

Total long-term liabilities

2,193,768

2,212,290

Total liabilities

3,434,814

3,561,873

Common stock

188,734

187,681

Additional paid-in capital

212,229

211,999

Retained earnings (accumulated deficit)

17,158(51,269)

Less: Treasury stock

(219)

(214)

Total shareholders’ equity

417,902348,197

Unrealized gain on available-for-sale securities

44,29831,334

Deferred gain on derivatives under hedge accounting

12,617

25,117

Foreign currency translation adjustments(31,653)(30,554)

Total valuation and translation adjustments

25,26225,897365

289

Minority interests

468,799

450,414

Total equity

912,329824,798¥4,347,144¥4,386,672

Current portion of corporate bonds
Accounts payable - otherand accrued expenses

Long-term liabilities:

Equity:Stock acquisition rights

Total liabilities and equity

23

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the six-month period ended September 30, 2009

(2) Consolidated Statements of Income
For the six-month period ended September 30, 2009

(Millions of yen)Six-month period ended
September 30, 2008

Six-month period ended
September 30, 2009

April 1, 2008 to
September 30, 2008

April 1, 2009 to
September 30, 2009

AmountAmountNet sales
Cost of sales
Gross Profit¥1,328,998¥1,349,275

690,137

649,351

638,860

699,923

458,859

469,302

180,000

230,621

866

306

617

766

-

2,283

Other non-operating income
Non-operating income

3,183

3,011

4,667

6,367

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

57,061

55,345

2,421-

Selling, general and administrative expenses
Operating income
Interest income
Foreign exchange gain, net
Equity in earnings of affiliated companies

7,870

8,106

67,35263,451

117,315

173,538

Gain on sale of investment securities

2,519

4,027

Dilution gain from changes in equity interest
Unrealized appreciation on investments and loss on saleof investments at subsidiaries in the U.S. , net

2,353

1,160

-

345

Other special income

1,342

448

6,215

5,981

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

3,123

1,288

3,175

-

479

797

Other special losses

1,536

618

8,315

2,704

115,215

176,815

Current

34,432

48,823

Deferred

17,401

34,735

Total income taxes

51,83483,558

Minority interests in net income

22,26522,506¥41,115¥70,750

Ordinary income

Special income

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

Net income24SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the six-month period ended September 30, 2009

For the three-month period ended September 30, 2009

(Millions of yen)Three-month period ended
September 30, 2008

Three-month period ended
September 30, 2009

July 1, 2008 to
September 30, 2008

July 1, 2009 to
September 30, 2009

AmountAmountNet sales
Cost of sales
Gross Profit¥681,742¥682,941

354,811331,745

326,931

351,196

Selling, general and administrative expenses

232,017

228,864

94,913

122,331

505

188

507

382

-

2,915

Other non-operating income
Non-operating income

1,630

1,292

2,643

4,779

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

28,65827,855815-

Operating income
Interest income
Foreign exchange gain, net
Equity in earnings of affiliated companies

5,039

4,515

34,51332,37063,043

94,740Gain on sale of investment securities

54

3,495

Reversal of allowance for doubtful accounts

510

-

366

599

932

4,094

1,809

364

2,335

521

1,968

328

6,113

1,213

57,861

97,621

Current

22,691

28,966

Deferred

2,868

13,546

Total income taxes

25,55942,512

Minority interests in net income

10,554

11,742¥21,747¥43,366

Ordinary income

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

Net income25

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the six-month period ended September 30, 2009

(3) Consolidated Statements of Cash Flows(Millions of yen)Six-month period ended
September 30, 2008

Six-month period ended
September 30, 2009

April 1, 2008 to
September 30, 2008

April 1, 2009 to
September 30, 2009

Cash flows from operating activities:
Income before income taxes and minority interests¥115,215¥176,815

Depreciation and amortization

115,067

120,075

Amortization of goodwill

30,63230,557

Equity in losses (earnings) of affiliated companies

2,421(2,283)

Dilution gain from changes in equity interest, net(2,353)(1,080)

Impairment loss

479

797

Valuation loss on investment securities

3,123

1,288

3,175

(345)

Foreign exchange gain , net(2,472)(574)(3,969)(835)

Interest and dividend income(1,543)(520)Interest expense

57,061

55,345Adjustments for:

Unrealized loss (appreciation) on investments and loss on sale ofinvestments at subsidiaries in the U.S., net
Gain on sale of marketable and investment securities, net

Changes in operating assets, and liabilities(Increase) decrease in receivables – trade(2,855)63,499Decrease in payables - trade(41,974)(2,096)(16,149)(57,319)259,253

379,927

1,661

560

Interest paid

(50,658)(47,800)

Income taxes paid

(33,050)(17,345)

177,206

315,341

Other, net
Sub-totalInterest and dividends received

Net cash provided by operating activities- Continued -26

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the six-month period ended September 30, 2009

Consolidated Statements of Cash Flows (Continued)(Millions of yen)Six-month period ended
September 30, 2008

Six-month period ended
September 30, 2009

April 1, 2008 to
September 30, 2008

April 1, 2009 to
September 30, 2009

Cash flows from investing activities:
Purchase of property and equipment, and intangibles¥ (142,867)¥ (144,149)(24,528)(12,114)

12,723

15,561(17,530)

(40)

7,099

2,501

(165,103)(138,241)

Increase (decrease) in short-term borrowings, net

60,127(148,581)

Increase in commercial paper, net

2,000

3,000

Proceeds from long-term debt

102,621201,727

Repayment of long-term debt

(169,028)(250,138)-

153,627(35,130)(6,673)

235

2,105

872

687

Cash dividends paid

(2,666)(2,667)

Cash dividends paid to minority shareholders(4,115)(4,492)

Purchase of treasury stock of consolidated subsidiaries
Proceeds from sale and lease back of equipment newly acquired(52,164)(1)

55,522

38,977

Repayment of lease obligations(36,325)(44,562)

Other, net(3,891)(2,105)

Net cash used in financing activities(81,943)(59,096)411(1,541)(69,429)

116,461

159

126

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:

Proceeds from issuance of bonds
Redemption of bonds
Exercise of warrants
Proceeds from issuance of shares to minority shareholders

Effect of exchange rate changes
on cash and cash equivalents
Net (decrease) increase in cash and cash equivalents
Increase in cash and cash equivalents due to newly consolidated
subsidiaries
Decrease in cash and cash equivalents due to exclusion ofpreviously consolidated subsidiaries
Cash and cash equivalents, beginning of the period(1,810)(807)

490,266

457,644

Cash and cash equivalents, end of the period¥419,186¥573,424

27

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the six-month period ended September 30, 2009(4) Significant Doubt about Going Concern Assumption
There are no applicable items for the six-month period ended September 30, 2009.

(5) Basis of Presentation of Consolidated Financial Statements(Items described “Qualitative Information/Financial Statements 5. Others” on page 21 are excluded.)
1. Changes in scope of consolidation(1) Changes in scope of consolidation for the six-month period ended September 30, 2009 are as follows:<Increase>
5 companies<Decrease>
3 companies(2) The number of consolidated subsidiaries after the changes:
110 companies
2. Changes in scope of equity method(1) Changes in scope of equity method are as follows:<Increase>1 companies<Decrease>
12 companies(2) The number of non-consolidated subsidiaries and affiliated companies under the equity method after the changes:
Non-consolidated subsidiaries under the equity method: 5 companies
Affiliated companies under the equity method: 58 companies

28

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the six-month period ended September 30, 2009(6) Notes(Consolidated Balance Sheets)
1. Accumulated depreciation of property and equipment
As of September 30, 2009
1,032,959

million yen

As of March 31, 2009
966,322

million yen

2. Secured loans(1) Assets pledged as collateral for secured liabilities
Assets pledged as collateral and secured liabilities by consolidated subsidiaries are as follows:
As of September 30, 2009

As of March 31, 2009

Assets pledged as collateral:
Cash and deposits

208,790

212,414

Notes and accounts receivable - trade287,890

312,831

Buildings and structures

12,012

12,774

Telecommunications equipment

240,041

260,509

Telecommunications service lines
Land
Investment securities and investments in unconsolidated
subsidiaries and affiliated companies
Investments and other assets - other assets
Total

168

189

10,624

10,617

85,34566,86323,91531,999868,789

million yen

As of September 30, 2009

908,201

million yen

As of March 31, 2009

Secured liabilities:
Accounts payable - trade

1,613

1,239

Short-term borrowings

2,299

2,903

Long - term debt

1,287,099

1,214,208

Total

1,218,121

million yen

1,291,242

million yen

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¥1,184,853 million and ¥1,118,975 million, as of March 31, 2009 and September 30, 2009, respectively) resulting from theacquisition of SOFTBANK MOBILE, in addition to the assets pledged as collateral above.
(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 thosequalify for derecognition criteria of a financial asset, were included in “Short-term borrowings” (¥185,669 million and¥184,511 million, as of March 31, 2009 and September 30 2009, respectively) and “Long-term debt” (¥36,256 millionand ¥37,115 million, as of March 31, 2009 and September 30, 2009, respectively). The amounts of the senior portionof the securitized installment sales receivables (¥ 221,925 million and ¥221,627 million, as of March 31, 2009 and asof September 30, 2009, respectively) were included in “Notes and account receivable-trade”, along with thesubordinated portion held by the SOFTBANK MOBILE. The trustee raised the funds through asset backed loans
based on the receivables.

29

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the six-month period ended September 30, 2009[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* toa SPC (a consolidated subsidiary), and the SPC raised the funds through asset backed loans based on the receivables(¥20,000 million and ¥15,328 million, as of March 31, 2009 and September 30, 2009, respectively) from a financial
institution. Cash proceeds through the asset backed loans are included in the “Short-term borrowings” (¥6,660
million and ¥6,660 million, as of March 31, 2009 and September 30, 2009, respectively) and “Long-term debt”(¥13,340 million, and ¥8,668 million, as of March 31, 2009 and September 30, 2009, respectively).
* 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 September 30, 2009
Short-term borrowings

117,000 million yen

As of March 31, 2009
110,000 million yen

3. Additional entrustment for debt assumption of bonds (As of September 30, 2009)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 theyear ended March 31, 2009.
As of September 30, 2009, since the maturity for the additional entrustment was within one year, the accounts payable wasincluded 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 September 30, 2009
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

30

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the six-month period ended September 30, 2009

(Consolidated Statements of Income)For the six-month period ended September 30, 2008 and 2009 (From April 1 to September 30, 2008 and 2009)
1. Selling, general and administrative expenses
Six-month period ended
September 30, 2008
194,578 million yen

Sales commission and sales promotion expense
Provision for allowance for doubtful accounts

22,747Six-month period ended
September 30, 2009
223,907 million yen
8,866

2. Unrealized appreciation (loss) on valuation of investments and loss on sale of investments at subsidiaries in the UnitedStates of America, net
Certain subsidiaries of the Company in the United States of America qualify as investment companies under the provisions set
forth in 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 (loss) on valuation of investments
and gain (loss) on sale of investments at subsidiaries in the U.S., net and gain (loss) on sale of investments, computed based on
the acquisition cost, is also included in this account. The unrealized appreciation (loss) on valuation of investments and gain
(loss) on sale of investments included in unrealized appreciation (loss) on valuation of investments and loss on sale ofinvestments at subsidiaries in the U.S., net in the consolidated statements of income are as follows:

Six-month period ended
September 30, 2008
Unrealized appreciation (loss) on valuation of investment
at subsidiaries in the U.S.,net
Loss on sale of investments
at subsidiaries in the U.S.,net
Total

Six-month period ended
September 30, 2009

(3,167)

1,338

(8)

(993)

(3,175) million yen

345

million yen

3. Impairment loss
(From April 1, 2008 to September 30, 2008)
Goodwill at a subsidiary of the Internet culture segment was recorded as an impairment loss of ¥479 million in the consolidated
statements of income.
(From April 1, 2009 to September 30, 2009)
Goodwill at a subsidiary of the Internet culture segment was recorded as an impairment loss of ¥797 million in the consolidated
statements of income since the future cash flows were not expected to be generated.

31

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the six-month period ended September 30, 2009

For the three-month period ended September 30, 2008 and 2009 (From July 1 to September 30, 2008 and 2009)
1. Selling, general and administrative expenses
Three-month period ended
September 30, 2008
99,183 million yen

Sales commission and sales promotion expense
Provision for allowance for doubtful accounts

12,955Three-month period ended
September 30, 2009
104,542 million yen
5,258

2. Unrealized loss on valuation of investments and loss on sale of investments at subsidiaries in the United States ofAmerica, 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 gain (loss) on valuation of investments and gain
(loss) on sale of investments at subsidiaries in the U.S., net and gain (loss) on sale of investments, computed based on theacquisition cost, is also included in this account. The unrealized gain (loss) on valuation of investments and gain (loss) on saleof investments included in unrealized loss on valuation of investments and loss on sale of investments at subsidiaries in the U.S.,
net in the consolidated statements of income are as follows:
Three-month period ended
September 30, 2008
Unrealized loss on valuation of investment
at subsidiaries in the U.S.,net
Loss on sale of investments
at subsidiaries in the U.S.,net
Total

Three-month period ended
September 30, 2009

(910)

(1)

(1,425)(519)(2,335) million yen(521)

million yen(Consolidated Statements of Cash Flows)
1. Reconciliation of cash and cash equivalents to the amounts presented in the accompanying consolidated balance sheets
As of September 30, 2008
million yen

As of September 30, 2009

Cash and deposits

418,968

Marketable securities

5,073

3,942

Time deposits with original maturity over three months(1,050)(2,741)

Stocks and bonds with original maturity over three months(3,805)(3,612)

Cash and cash equivalents

419,186

million yen

575,835 million yen

573,424 million yen

2. Scope of Purchase of property and equipment, and intangibles in the consolidated statements of cash flows“Purchase of property and equipment, and intangibles” are comprised of cash outflows from purchasing property and equipment,
and intangible assets (excluding goodwill) and long-term prepaid expenses.
3. Proceeds from sale 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.”32

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the six-month period ended September 30, 2009

(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 eachperiod:As of September 30, 2009

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

170,944(85,891)

171,192(77,309)(37,786)
47,265(37,786)
56,096

million yen

35,989million yen

6,296
9,077
(5,794)(171)
3,111
243,728(112,029)(39,035)
92,662

33

37,168million yen

17,227(8,424)(1,077)

16,977(9,603)(1,077)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

million yen

47,004(9,836)-

46,729(10,739)-

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

As of March 31, 2009

million yen

7,724

million yen

million yen

9,086(4,919)
(171)
3,996

million yen

million yen

244,511(100,489)(39,035)
104,986

million yen

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the six-month period ended September 30, 2009

Long-term prepaid expenses relating to a lease contract, in which the contract term and payment term are different, as ofMarch 31, 2009 and September 30, 2009 were ¥19,867 million and 22,644 million, respectively and are included in“Other assets” of investments and other assets in the consolidated balance sheets. Current portion of long-term prepaid
expenses related to the lease contract in the amount of ¥714 million and ¥712 million as of March 31, 2009 and
September 30, 2009 are included in “Other current assets” in the consolidated balance sheets.
(2) Obligations under finance lease at the end of each period:
As of September 30, 2009

Due within one year
Due after one year

As of March 31, 2009

30,726110,651

29,276
92,125
Total

121,401

million yen

141,378

million yen

Balance of allowance for impairment loss on
leased property

14,409million yen

18,809million yen(3) Lease payments, reversal of allowance for impairment loss on leased property, amounts equivalent to depreciation, andinterest expense for each period:(From April 1 to September 30, 2008 and 2009)
Six-month period ended

Six-month period ended

September 30, 2008

September 30, 2009

21,165

Lease payments
Reversal of allowance for impairment loss on
leased property
Depreciation expense
Interest expense

million yen

19,046

3,362

4,399

14,436
4,775

12,257
4,552

million yen(From July 1 to September 30, 2008 and 2009)
Three-month period ended

Three-month period ended

September 30, 2008

September 30, 2009

10,526

Lease payments
Reversal of allowance for impairment loss on
leased property
Depreciation expense
Interest expense

million yen

9,462

1,679

2,228

7,008
2,308

6,119
2,204

million yen(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.

34

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the six-month period ended September 30, 2009

(Investment in Debt and Equity Securities)
1. Marketable and investment securities at fair value(Millions of yen)

As of September 30, 2009
Investment
Carrying
Differences
Cost
Amount(1)(2)

Equity securities
OthersTotal

23,765
2,355
26,120100,505
2,652
103,157

As of March 31, 2009
Investment
Carrying
Differences
AmountCost

76,739297
77,03625,2702,924
28,194

79,7902,671
82,46154,519(253)
54,266

2. Carrying amounts of the unlisted investment securities(Millions of yen)

As of September 30, 2009

As of March 31, 2009

Carrying Amounts

Carrying Amounts(1)Held-to-maturity debt securities
Unlisted foreign debt securities

¥700

¥700

Unlisted debt securities

599

299

Unlisted equity securities

84,80180,747

Investments in limited partnerships

6,353

6,732

Others

873

223

Total

¥93,327¥88,702(2)Available-for-sale and other securities

3. Investment securities evaluated at fair value under the provisions set forth in Financial Services – Investment
Companies of 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.
The carrying amounts of the investment securities at fair value recorded in the consolidated balance sheets as of March 31,
2009 and September 30, 2009 were as follows:
As of September 30, 2009
Carrying amounts of investment securities at fair value :15,393 million yen

As of March 31, 2009
Carrying amounts of investment securities at fair value :18,064 million yen

35

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the six-month period ended September 30, 2009

(Per Share Data)
1.

Shareholders’ equity per share
As of

As of

September 30, 2009

March 31, 2009

Shareholders’ equity per share (yen)2.

¥346.11¥409.46

Net income per share and basic data for computation of the per share data

For the six-month period ended September 30, 2008 and 2009
April 1, 2008 to

April 1, 2009 to

September 30, 2008

September 30, 2009

Net income per share – primary (yen)

38.04

65.41

Net income per share – diluted (yen)

36.20

63.02

Basic data for computation of the per share data

April 1, 2008 to

April 1, 2009 to

September 30, 2008

September 30, 2009

1. Net income (in millions of yen)
2. Amounts not allocated to shareholders(in millions of yen)
3. Net income allocated to common stock outstanding(in millions of yen)
4. Weighted average number of common stock outstanding
during each period (unit: thousand of 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–Total6. Increase of common stock used to calculate net income per share– diluted(unit: thousand of shares)-

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

36

41,11570,750--41,11570,7501,080,587

1,081,663

778

481

(17)

(14)

760

467

76,20548,439-

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the six-month period ended September 30, 2009

For the three-month period ended September 30, 2008 and 2009
July 1, 2008 to

July 1, 2009 to

September 30, 2008

September 30, 2009

Net income per share – primary (yen)

20.12

40.07

Net income per share – diluted (yen)

19.12

38.56

Basic data for computation of the per share data

July 1, 2008 to

July 1, 2009 to

September 30, 2008

September 30, 2009

1. Net income (in millions of yen)
2. Amounts not allocated to shareholders(in millions of yen)
3. Net income allocated to common stock outstanding(in millions of yen)
4. Weighted average number of common stock outstanding
during each period (unit: thousand of 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–Total6. Increase of common stock used to calculate net income per share– diluted(unit: thousand of shares)-

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

37

21,74743,366--

21,74743,366

1,080,635

1,082,314

389

240

(8)

(7)

380

233

76,13348,300-SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the six-month period ended September 30, 2009(7) Segment Information
1. Business segment information
For the three-month period ended September 30, 2008 and 2009
From July 1, 2008 to September 30, 2008
Mobile(Millions of yen)

Broadband

Fixed-line

Internet

Elimination
e-Commerce

Others

Total

CultureConsolidated

Communications

Infrastructure

Telecommunications

or Corporate(1) Customers¥399,474¥58,179¥78,500¥62,590¥62,620¥20,376¥681,742¥-¥681,742(2) Inter-segment

1,900

1,731

11,504

669

2,901

3,812

22,520(22,520)-

Total

401,375

59,91190,00563,25965,522

24,189704,262(22,520)681,742

Operating income

43,89011,7894,759

30,645

1,737

3,383

96,205(1,291)

94,913

Net sales

From July 1, 2009 to September 30, 2009
Mobile(Millions of yen)

Broadband

Fixed-line

Internet

Elimination
e-Commerce

Others

Total

CultureConsolidated

Communications

Infrastructure

Telecommunications(1) Customers¥422,317¥50,670¥75,100¥64,820¥52,712¥17,319¥682,941¥-¥682,941(2) Inter-segment

2,570

1,060

10,751

1,153

3,239

4,646

23,421(23,421)-

Total

424,888

51,73185,851

65,973

55,952

21,965706,362(23,421)682,941

Operating income

71,515

13,326

4,336

32,436

1,221

719

123,556(1,224)

122,331or Corporate

Net sales

Notes:
1. Business segments are categorized primarily based on the nature of business operations, type of services, and similarity of sales channels,
etc. which the SOFTBANK Group uses for its internal management purposes.
2. Regarding the main business segments, please see “Qualitative Information / Financial Statements 4. The SOFTBANK Group” in details
on page 20.

38

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the six-month period ended September 30, 2009

For the six-month period ended September 30, 2008 and 2009
From April 1, 2008 to September 30, 2008
Mobile(Millions of yen)

Broadband

Fixed-line

Internet

Elimination
e-Commerce

Others

Total

CultureConsolidated

Communications

Infrastructure

Telecommunications

or Corporate(1) Customers¥770,166¥116,970¥156,629¥124,142¥122,291¥38,797¥1,328,998¥-¥1,328,998(2) Inter-segment

3,794

3,068

21,829

1,443

5,689

7,210

43,035(43,035)-

Total

773,961

120,038

178,458

125,586

127,981

46,0081,372,033(43,035)

1,328,998

Operating income

88,164

22,265

5,557

61,188

2,747

2,624

182,547(2,546)

180,000

Net sales

From April 1, 2009 to September 30, 2009
Mobile(Millions of yen)

Broadband

Fixed-line

Internet

Elimination
e-Commerce

Others

Total

CultureConsolidated

Communications

Infrastructure

Telecommunications(1) Customers¥827,413¥103,345¥151,567¥128,952¥104,501¥33,495¥1,349,275¥-¥1,349,275(2) Inter-segment

4,779

2,191

21,042

2,177

5,664

9,137

44,993(44,993)-

Total

832,193

105,537

172,609131,129

110,166

42,632

1,394,268(44,993)

1,349,275

Operating income (loss)

131,776

27,2307,830

64,154

2,161

(160)

232,991(2,369)230,621or Corporate

Net sales

Notes:
1. Business segments are categorized primarily based on the nature of business operations, type of services, and similarity of sales channels,
etc. which the SOFTBANK Group uses for its internal management purposes.
2. Regarding the main business segments, please see “Qualitative Information / Financial Statements 4. The SOFTBANK Group” in details
on page 20.

39

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the six-month period ended September 30, 2009

2. Geographic segment information
For the three-month period ended September 30, 2008 and 2009
From July 1, 2008 to September 30, 2008

(Millions of yen)
North

Japan

OthersAmerica

Elimination

Total

Consolidated

or corporate

Net sales(1) Customers¥677,878¥270¥3,593¥681,742¥-¥681,742

100

-

-

100

(100)

-

Total

677,978

270

3,593

681,842(100)

681,742

Operating income (loss)

93,591

3,197

(169)

96,618(1,704)

94,913(2) Inter-segment

From July 1, 2009 to September 30, 2009

(Millions of yen)
North

Japan

OthersAmerica

Elimination

Total

Consolidated

or corporate

Net sales(1) Customers¥680,627¥266¥2,048¥682,941¥-¥682,941

130

-

-

130

(130)

-

Total

680,758

266

2,048

683,072(130)

682,941

Operating income (loss)

123,988

(156)

(93)

123,738(1,407)

122,331(2) Inter-segment

Notes:
1. Net sales by geographic region are recognized based on geographic location of the operation.
2. Significant countries in each region are as follows:
North America : United States of America and Canada
Others: Europe, Korea, China, Singapore, and others
3. In the North America segment, Softbank Holdings Inc., a consolidated subsidiary of the company in the United States of America,
reversed a tax reserve for net worth taxes of ¥3,609 million and credited it to operating expenses for the period ended September 30, 2008.

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SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the six-month period ended September 30, 2009

From April 1, 2008 to September 30, 2008

(Millions of yen)
North

Japan

OthersAmerica

Elimination

Total

Consolidated

or corporate

Net sales(1) Customers¥1,321,839¥568¥6,590¥1,328,998¥-¥1,328,998

220

-

-

220

(220)

-

Total

1,322,059

568

6,590

1,329,218(220)

1,328,998

Operating income (loss)

180,688

2,910

(238)

183,360(3,360)180,000(2) Inter-segment

From April 1, 2009 to September 30, 2009

(Millions of yen)
North

Japan

OthersAmerica

Elimination

Total

Consolidated

or corporate

Net sales(1) Customers¥1,344,902¥525¥3,847¥1,349,275¥-¥1,349,275

226

-

-

226

(226)

-

Total

1,345,128

525

3,847

1,349,501(226)

1,349,275

Operating income (loss)

234,211

(471)

(271)

233,468(2,846)230,621(2) Inter-segment

Notes:
1. Net sales by geographic region are recognized based on geographic location of the operation.
2. Significant countries in each region are as follows:
North America : United States of America and Canada
Others: Europe, Korea, China, Singapore, and others
3. In the North America segment, Softbank Holdings Inc., a consolidated subsidiary of the company in the United States of America,
reversed a tax reserve for net worth taxes of ¥3,609 million and credited it to operating expenses for the period ended September 30, 2008.

3. Overseas sales
Disclosures of overseas sales for the three-month and the six-month periods ended September 30, 2008 and 2009 were omitted because
the total overseas sales were less than 10% of total consolidated sales.

(8) Notes to Significant Changes in Shareholder’s Equity
There are no applicable items.

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