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 5 of this report.

SoftBank Corp.
Consolidated Financial Report
For the fiscal year ended March 31, 2015 (IFRS)Tokyo, May 11, 2015

1.

Financial Highlights(Millions of yen; amounts are rounded off to the nearest million yen)

(1) Results of Operations(Percentages are shown as year-on-year changes)

OperatingincomeNet sales
Amount%Amount%Incomebefore incometax
Amount%

Net income

Net income
attributable toowners of theparentTotal
comprehensive
incomeAmountAmountAmount%%%Fiscal year ended
March 31, 2015

¥8,670,221 30.1 ¥982,703 (8.8) ¥1,277,045 38.2 ¥763,682 32.1 ¥668,361 28.5 ¥1,128,262 117.8

Fiscal year ended
March 31, 2014

¥6,666,651 108.2 ¥1,077,044-¥924,049¥578,251--¥520,250-¥517,967-

Ratio of net income
to equity,
Ratio of income Ratio of operating
attributable tobefore income tax income to net sales
to total assets (%)(%)
owners of theparent (%)

Basic earnings
per share (yen)Diluted earnings
per share (yen)Fiscal year ended
March 31, 2015

¥562.20¥558.75

28.0

6.8

11.3

Fiscal year ended
March 31, 2014¥436.95¥434.68

29.5

7.7

16.2

Notes:
1. Equity in income of associates
Fiscal year ended March 31, 2015:¥ 76,614 million
Fiscal year ended March 31, 2014:¥ 74,402 million
2. Year-on-year percentage changes except for net sales for the fiscal year ended March 31, 2014 are not described due to theretrospective adjustments in regard to the changes in accounting policies. Please refer to page 52 “Note 4. Changes inaccounting policies” under “5. Consolidated Financial Statements (6) Notes to Consolidated Financial Statements” for details.

(2) Financial Position

Total assets

Total equity

Equityattributable toowners of theparentRatio of equity
attributable toowners of the parent
to total assets (%)

Equity per share
attributable toowners of theparent (yen)As of March 31, 2015

¥21,034,169¥3,853,177¥2,846,306

13.5

2,393.47

As of March 31, 2014¥16,690,127¥2,830,382¥1,930,441

11.6

1,624.33

Note:
Retrospective adjustments in regard to the changes in accounting policies are made for each financial figure as of March, 31 2014.
Please refer to page 52 “Note 4. Changes in accounting policies” under “5. Consolidated Financial Statements (6) Notes toConsolidated Financial Statements” for details.

(3) Cash Flows2.

Operating activities

Investing activities

Financing activities

Cash and cash
equivalents
at the end of the year

Fiscal year ended
March 31, 2015

¥1,155,174¥(1,667,271)¥1,719,923¥3,258,653

Fiscal year ended
March 31, 2014

¥860,245¥(2,718,188)¥2,359,375¥1,963,490

Dividends
Dividends per shareFirst quarter

Third quarter

Fourth quarter

Total

(yen)

(yen)

(yen)

(yen)

-

20.00

-

20.00

40.00

-

20.00

-

20.00

40.00

-

20.00

-

20.00

40.00

Fiscal year ended
March 31, 2014
Fiscal year ended
March 31, 2015
Fiscal year ending
March 31, 2016
(Forecasted)

Fiscal year ended
March 31, 2014
Fiscal year ended
March 31, 2015
Fiscal year ending
March 31, 2016
(Forecasted)

Second quarter(yen)

Total amount ofdividends(Annual)Payout ratio(Consolidated)

Ratio of dividend
to equity
attributable toowners of theparent(Consolidated)(Millions of yen)%%

47,6089.2

2.7

47,562

7.1

2.0

-

3. Forecasts on the Consolidated Results of Operations for the Fiscal Year Ending March 2016 (April 1, 2015 – March 31, 2016)
Currently it is difficult to provide forecasts on the results in figures due to a large number of uncertain factors affecting theearnings. The Company will announce its forecasts on the consolidated results of operations when it becomes possible to
make a rational projection.
* Notes(1) Significant changes in scope of consolidation (changes in scope of consolidation of specified subsidiaries): No(2) Changes in accounting policies and accounting estimates[1] Changes in accounting policies required by IFRSs: Yes[2] Changes in accounting policies other than those in [1]: No[3] Changes in accounting estimates: Yes
Please refer to page 28 “Changes in Accounting Policies and Accounting Estimates” under “4. Notes to Summary Information”
for details.

(2) Number of shares issued (common stock)[1] Number of shares issued (including treasury stock):
As of March 31, 2015:
1,200,660,365 shares
As of March 31, 2014:
1,200,660,365 shares[2] Number of treasury stock:
As of March 31, 2015:
11,463,275 shares
As of March 31, 2014:12,204,526 shares[3] Number of average stocks during twelve-month period (April-March):
Fiscal year ended March 31, 2015:
1,188,830,428 sharesFiscal year ended March 31, 2014:
1,190,650,355 shares

SoftBank Corp. Consolidated Financial Report
For the fiscal year ended March 31, 2015

[For Reference]
Financial Highlights (Non-Consolidated)(1) Non-Consolidated Results of Operations(Percentages are shown as year-on-year changes)

Net sales

Operating income

Ordinary income

Net income

Amount%Amount%Amount%Amount%Fiscal year ended
March 31, 2015

¥47,423(4.4)¥26,402(23.3)¥40,482(83.5)¥3,272(98.7)

Fiscal year ended
March 31, 2014

¥49,586

7.7¥34,4029.0¥245,941

115.9¥243,049

219.8

Net income pershare-basic (yen)Net income pershare-diluted (yen)Fiscal year ended
March 31, 2015

¥2.75

¥2.75

Fiscal year ended
March 31, 2014

¥204.13¥203.85(2) Non-Consolidated Financial Position
Total assets

Net Assets

Equity ratio (%)

Shareholders’ equity
per share (yen)As of March 31, 2015

¥7,172,905¥894,693

12.5¥752.04

As of March 31, 2014

¥5,709,742¥936,019

16.4¥787.26

Note: Shareholders’ equity (Non-consolidated)
As of March 31, 2015:¥894,329 million
As of March 31, 2014:¥935,629 million(3) Differences in Non-Consolidated Operating Results from the Previous Fiscal YearThe decrease in ordinary income and net income in the fiscal year ended March 2015 from the previous fiscal year ended
March 2014 was mainly attributable to a ¥216,778 million year-on-year decline in dividends from subsidiaries andassociates.
Financial Highlights (Non-Consolidated) are prepared under Japanese Generally Accepted Accounting Principles (“JGAAP”).
* Implementation status of audit proceduresThis consolidated financial report is not subject to audit procedures based on the Financial Instruments and Exchange Act, andthe audit procedures for the consolidated financial statements were being conducted when this report was disclosed.
* Note to forecasts on the consolidated results of operations and other items
The Company has adopted IFRSs from the three-month period ended June 30, 2013.
The forecast figures are estimated based on the information that the Company is able to obtain at the present point andassumptions which are deemed to be reasonable. However, actual results may be different due to various factors.
On May 11, 2015, the Company will hold an earnings results briefing for the media, institutional investors, and financial
institutions. This earnings results briefing will be broadcast live on our web site in both Japanese and English at
http://www.softbank.jp/en/corp/irinfo/. The Earnings Results Data Sheet will also be posted on the Company’s web site around
4 p.m. on the same day at http://www.softbank.jp/en/corp/irinfo/presentations/.

SoftBank Corp. Consolidated Financial Report
For the fiscal year ended March 31, 2015

(Appendix)

Contents
1. Results of Operations ......................................................................................................................................... P. 3
(1) Analysis of Results of Operations ............................................................................................................... P. 3
a. Consolidated Results of Operations .......................................................................................................... P. 3
b. Results by Segment .................................................................................................................................. P. 7
(Reference 1: Principal Operational Data) ................................................................................................... P. 12(Reference 2: Definitions and Calculation Methods of Principal Operational Data) ................................... P. 14(Reference 3: Capital Expenditure and Depreciation and Amortization) ..................................................... P. 15
c. Forecasts on the Consolidated Results of Operations for the Fiscal Year Ending March 2016 ............. P. 16(2) Analysis of Financial Position ..................................................................................................................... P. 17
a. Assets, Liabilities and Equity ................................................................................................................... P. 17
b. Cash Flows ............................................................................................................................................... P. 23(3) Fundamental Policy for Distribution of Profit, and Dividend for the Fiscal Year Ended March 2015 ......... P. 25
2. Management Policies .......................................................................................................................................
(1) Basic Management Approach ....................................................................................................................
(2) Target Management Indices ......................................................................................................................
(3) Medium- to Long-term Strategies .............................................................................................................
(4) Important Management Issues for the Company .......................................................................................

P. 26
P. 26
P. 26
P. 26
P. 26

3. Basic Approach to the Selection of Accounting Standards ................................................................................. P. 27
4. Notes to Summary Information ........................................................................................................................... P. 28
Changes in Accounting Policies and Accounting Estimates .............................................................................. P. 28
5. Consolidated Financial Statements ..................................................................................................................... P. 29(1) Consolidated Statements of Financial Position ............................................................................................ P. 29(2) Consolidated Statements of Income and Comprehensive Income ................................................................ P. 31(3) Consolidated Statements of Changes in Equity ............................................................................................ P. 33(4) Consolidated Statements of Cash Flows ....................................................................................................... P. 35(5) Significant Doubt about Going-Concern Assumption .................................................................................. P. 36(6) Notes to Consolidated Financial Statements ................................................................................................ P. 36
Definition of Company Names and Abbreviations Used in Appendix
Company names and abbreviations used in this appendix, except as otherwise stated or interpreted differently in thecontext, are as follows:
Company Name/ Abbreviation

Definition“SoftBank Corp.”

SoftBank Corp. (stand-alone basis)

The “Company”

SoftBank Corp. and its subsidiaries*Each of the following abbreviations indicates the respective company, and its subsidiaries if any.
“Sprint”

Sprint Corporation (formerly Sprint Nextel Corporation)“Brightstar”

Brightstar Corp.

“GungHo”

GungHo Online Entertainment, Inc.

“Supercell”

Supercell Oy“Alibaba”

Alibaba Group Holding Limited1

SoftBank Corp. Consolidated Financial Report
For the fiscal year ended March 31, 2015

Major Changes to Subsidiaries (April 2013 - March 2015)
Period of consolidation
Date of change

Fiscal Year Ended March 2014

Fiscal Year Ended March 2015

Three-month Three-month Three-month Three-month Three-month Three-month Three-month Three-month
Period Ended Period Ended Period Ended Period Ended Period Ended Period Ended Period Ended Period Ended
June 30, 2013 Sept. 30, Dec. 31, 2013 Mar. 31, 2014 June 30, 2014 Sept. 30, Dec. 31, 2014 Mar. 31, 2015
2014
2013

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Mobile Communications
GungHo Online
Entertainment, Inc.

(Consolidated on April 1)(Merged by eAccess Ltd. on June 1)

Ymobile Corporation(formerly eAccess Ltd.)(Note 1)WILLCOM, Inc.
(Consolidated on July 1)

Supercell Oy(Consolidated on October 31)

Brightstar Corp. (Note 2)(Consolidated on January 30)

SprintSprint Corporation(Consolidated on July 10)

Notes:
1. eAccess Ltd. changed its company name to Ymobile Corporation on July 1, 2014. Preceding this, eAccess Ltd. mergedwith WILLCOM, Inc. on June 1, 2014. The ADSL business of Ymobile Corporation is included in the Fixed-line
Telecommunications segment.
2. The commerce and service business of SoftBank BB Corp. has been included in the Mobile Communications segment.
This business was inherited by SoftBank Commerce & Service Corp., which was newly incorporated on April 1, 2014, and
SoftBank Commerce & Service Corp. was consolidated by Brightstar on the same date.
3. Effective on April 1, 2015, SoftBank Mobile Corp., SoftBank BB Corp., SoftBank Telecom Corp. and Ymobile Corporation
merged with SoftBank Mobile Corp. being the surviving company.

2

SoftBank Corp. Consolidated Financial Report
For the fiscal year ended March 31, 2015

1. Results of Operations(1) Analysis of Results of Operations
a. Consolidated Results of Operations(Millions of yen)

Fiscal Year Ended
March 31, 2014 (Note 4)

Fiscal Year Ended
March 31, 2015

Net sales

6,666,651

Operating income

ChangeChange %8,670,221

2,003,570

30.1％

1,077,044

982,703(94,341)(8.8％)(Incl.)
Gain from remeasurement
relating to businesscombination

253,886-(253,886)-

Income before income
tax

924,049

1,277,045

352,996

38.2％

3,633

599,815596,182-

578,251

763,682

185,43132.1％

520,250

668,361

148,11128.5％(Incl.)
Dilution gain from changes inequity interest

Net income
Net income attributableto owners of the parent

Note:
4. Retrospective adjustments are made in accordance with the adoption of IFRIC 21 “Levies.” Please refer to page 52 “4.
Changes in accounting policies” under “5. Consolidated Financial Statements (6) Notes to Consolidated Financial
Statements” for details on the retrospective adjustments.

The main factors affecting earnings for the fiscal year ended March 31, 2015 (the “fiscal year”) were as follows:(a) Net Sales
Net sales totaled ¥8,670,221 million, for a ¥2,003,570 million (30.1%) increase from the fiscal year ended March
31, 2014 (the “previous fiscal year”).

This primarily resulted from increases in net sales in the Mobile

Communications segment and the Sprint segment.
The Mobile Communications segment’s net sales (for customers) amounted to ¥4,143,653 million, for a¥1,000,990 million (31.9%) increase year on year. This was due mainly to increases in net sales at Brightstar1
and Supercell. Net sales increased at Brightstar because in the previous fiscal year the results of Brightstar wererecorded only for two months, but in the fiscal year they were recorded for the entire fiscal year. The increasein net sales at Supercell was due mainly to strong growth in its operations.
Net sales (for customers) of the Sprint segment totaled ¥3,594,167 million, for a ¥993,424 million (38.2%)
increase compared to the previous fiscal year. The main reason for the increase was recording the results of
Sprint for the entire fiscal year, when in the previous fiscal year its results were recorded only for the period from
July 11, 2013, after its acquisition.

1

In “1. Results of Operations” the results of Brightstar are shown excluding the earnings of SoftBank Commerce & Service Corp., which wasconsolidated by Brightstar on April 1, 2014. The results of SoftBank Commerce & Service Corp. and the commerce and service business of
SoftBank BB Corp., from which SoftBank Commerce & Service Corp. inherited the business, have been included in the Mobile Communications
segment.

3

SoftBank Corp. Consolidated Financial Report
For the fiscal year ended March 31, 2015(b) Operating Income
Operating income totaled ¥982,703 million, for a decrease of ¥94,341 million (8.8%) year on year.

The decline

primarily reflected the absence of ¥253,886 million in gain from remeasurement relating to business combination
recorded in the previous fiscal year, although other operating loss improved by ¥27,762 million and income
increased in the Mobile Communications segment and the Sprint segment by ¥89,442 million and ¥80,007 million,
respectively.
Other operating loss was ¥27,668 million, an improvement of ¥27,762 million year on year (other operating
loss of ¥55,430 million was recorded in the previous fiscal year). The improvement was mainly a result of notrecording impairment loss for the fiscal year, compared to impairment loss of ¥32,090 million recorded in theprevious fiscal year, and recording ¥18,726 million in gain on partial pension settlement at Sprint. These werepartially offset by ¥21,271 million of provision for unprofitable contract at SoftBank Telecom Corp.

Pleaserefer to page 78 “13. Other operating loss” under “5. Consolidated Financial Statements (6) Notes to Consolidated
Financial Statements” for details of other operating income and loss.
In the previous fiscal year, the Company recorded a gain of ¥253,886 million recognized following
remeasurement at fair value of the respective equity interests in GungHo and WILLCOM, Inc.2 that it alreadyheld on the dates when the Company acquired control.

No gain from remeasurement relating to businesscombination was recorded in the fiscal year.
(c) Finance Cost
Finance cost totaled ¥366,505 million, for a ¥95,027 million (35.0 %) increase year on year. The increase wasmainly due to the impact of recording interest expense of Sprint for the entire fiscal year.
(Millions of yen)

Fiscal Year Ended
March 31, 2014

Fiscal Year Ended
March 31, 2015

Finance cost

271,478

366,505

95,02735.0%(Incl.) Sprint

154,117

236,776

82,65953.6%

ChangeChange %(d) Equity in Income and Loss of Associates
Equity in income of associates was ¥76,614 million, an improvement of ¥2,212 million year on year (equity inincome of associates of ¥74,402 million was recorded in the previous fiscal year). Out of this, ¥67,460 million
was recorded in equity in income of associates related to Alibaba, compared to an income of ¥66,780 million
recorded in the previous fiscal year.
Although Alibaba has shown steady growth, the increase in the relevant income of associates was subdued
since its net income was driven down by a loss of ¥398,716 million ($3,882 million) recognized in conjunction
with the increase in the fair value of the Convertible Preference Shares issued by Alibaba from January 1, 2014
to September 18, 2014, the day preceding the date of Alibaba’s listing on the New York Stock Exchange.
The Convertible Preference Shares were converted into common stock in conjunction with Alibaba’s listing
2

WILLCOM, Inc. was merged with eAccess Ltd. (so named at the time) on June 1, 2014.

4

SoftBank Corp. Consolidated Financial Report
For the fiscal year ended March 31, 2015

dated September 19, 2014. Consequently, dilution gain from changes in equity interest was recorded for the
portion attributable to the Company out of the loss incurred up until the listing in association with the increase in
the fair value of the Convertible Preference Shares.
(Millions of yen)

Fiscal Year Ended
March 31, 2014

Fiscal Year Ended
March 31, 2015

Equity in income ofassociates

74,402

76,614

2,212

3.0%

(Incl.) Alibaba

66,78067,460680

1.0%ChangeChange %(e) Dilution Gain from Changes in Equity Interest
Dilution gain from changes in equity interest was ¥599,815 million, an increase of ¥596,182 million year on year.
This was mainly attributable to recording dilution gain from changes in equity interest of ¥599,668 million inconnection with the listing of Alibaba, primarily as a result of the issuance of new shares by Alibaba and theconversion of the Convertible Preference Shares issued by Alibaba into common stock.

(f) Other Non-operating Income and Loss
Other non-operating loss was ¥15,582 million, a deterioration of ¥56,030 million year on year (other nonoperating income of ¥40,448 million was recorded in the previous fiscal year). The primary components wereas follows:i. Impairment loss on equity method associates of ¥35,261 million was recorded (not recorded in the previous
fiscal year). This is due mainly to recording impairment loss on investment in Renren Inc.
ii. Gain on sales of equity method associates was ¥1,882 million, deteriorating by ¥31,176 million year on
year. This mainly reflected recording gain of ¥26,109 million in the previous fiscal year following the saleof PPLive Corporation shares.
Please refer to page 80 “16. Other non-operating income and loss” under “5. Consolidated Financial Statements(6) Notes to Consolidated Financial Statements” for details.

(g) Income before Income Tax
As a result of (b) to (f), income before income tax was ¥1,277,045 million, an increase of ¥352,996 million(38.2%) year on year.

(h) Income Taxes
Provisions for current income taxes were ¥513,363 million, an increase of ¥167,565 million (48.5%) year on year.
Tax effects were recognized in principle for equity in income of associates and dilution gain from changes inequity interest related to associates such as Alibaba.

5SoftBank Corp. Consolidated Financial Report
For the fiscal year ended March 31, 2015(i) Net Income
As a result of (g) and (h), net income totaled ¥763,682 million, for a ¥185,431 million (32.1%) year-on-yearincrease.

(j) Net Income Attributable to Owners of the Parent
After deducting net income and loss attributable to non-controlling interests in subsidiaries such as Yahoo Japan
Corporation, Sprint, Supercell, and GungHo from (i), net income attributable to owners of the parent amounted
to ¥668,361 million, for a ¥148,111 million (28.5%) increase year on year.

(k) Comprehensive Income
Comprehensive income totaled ¥1,128,262 million, for a ¥610,295 million (117.8%) year-on-year increase. Of
this, comprehensive income attributable to owners of the parent was ¥991,671 million, for a ¥547,056 million(123.0%) year-on-year increase.

6SoftBank Corp. Consolidated Financial Report
For the fiscal year ended March 31, 2015b. Results by Segment
The Company’s reportable segments are components of business activities for which decisions on resource
allocation and assessment of performance are made.

The Company has four reportable segments: “Mobile

Communications,” “Sprint,” “Fixed-line Telecommunications,” and “Internet.”

In the Mobile Communications segment, SoftBank Mobile Corp. and other companies provide mobile
communications services and sell mobile devices and accessories, etc., while GungHo and Supercell produce anddistribute online games for smartphones and other devices.
In the Sprint segment, Sprint provides mobile communications services in the U.S. and sells mobile devices andaccessories accompanying the services, as well as fixed-line telecommunications services.
In the Fixed-line Telecommunications segment, SoftBank Telecom Corp. provides telecommunications services
such as fixed-line telephone and data communications services to corporate customers, while SoftBank BB Corp.
and other companies provide broadband services for individual customers.
In the Internet segment, Yahoo Japan Corporation provides Internet-based advertising operations and otherservices.

Main businesses and core companies of each reportable segment are as follows:
Segments

Reportablesegments

Main Businesses

Core Companies

Mobile Communications

・Provision of mobile communications services SoftBank Mobile Corp.
Ymobile Corporationin JapanWireless City Planning Inc.
・Sale of mobile devices and accessories
Brightstar Corp.
・Sale of PC software and peripherals
・Production and distribution of online games SoftBank Telecom Corp.
GungHo Online Entertainment,
for smartphones and other devices
Inc.
Supercell Oy

Sprint・Provision of mobile communications services Sprint Corporation
by Sprint in the U.S.
・Sale of mobile devices and accessories
accompanying the above services
・Provision of fixed-line telecommunications
services by Sprint

Fixed-line
Telecommunications

・Provision of telecom services such as fixedline telephone and data communications
services to domestic corporate customers
・Provision of broadband services to domestic
individual customers
・Services accompanying the above services

SoftBank Telecom Corp.
SoftBank BB Corp.
Ymobile Corporation
Yahoo Japan Corporation

・Internet advertising・e-commerce business・Membership services

Yahoo Japan Corporation

Internet
Others・Fukuoka SoftBank HAWKS related businesses Fukuoka SoftBank HAWKS Corp.

Note:
5. Income of reportable segments is based on income from operating income, excluding “Gain from remeasurement relating tobusiness combination” and “Other operating income (loss),” as follows:
Segment income = (net sales – cost of sales – selling, general and administrative expenses) in each segment

7SoftBank Corp. Consolidated Financial Report
For the fiscal year ended March 31, 2015(a) Mobile Communications Segment(Millions of yen)

Fiscal Year Ended
March 31, 2014

Fiscal Year Ended
March 31, 2015

3,165,518

4,189,513

1,023,995

32.3%

605,845695,287

89,44214.8%

Net sales
Segment income

ChangeChange %< Overview of Operations >The segment’s net sales increased by ¥1,023,995 million (32.3%) year on year to ¥4,189,513 million.

The

increase was mainly due to increases in net sales of Brightstar, Supercell, and SoftBank Mobile Corp.
Net sales of Brightstar amounted to ¥936,652 million, for a ¥799,118 million year-on-year increase. The
increase was mainly due to net sales of Brightstar being recorded for the entire fiscal year, while in the previous
fiscal year they were recorded only for two months. Net sales of Supercell were ¥252,570 million, for a ¥197,729
million year-on-year increase.

The increase in net sales at Supercell was due to strong growth in operations, andto net sales of Supercell being recorded for the entire fiscal year, while in the previous fiscal year they wererecorded only after its acquisition on October 31, 2013. At SoftBank Mobile Corp., net sales increased by ¥31,077
million year on year to ¥2,269,260 million, mainly on increased service revenue along with growth in the cumulative
number of subscribers.
Segment income increased by ¥89,442 million (14.8%) year on year to ¥695,287 million.

This primarilyreflected increases in income of Supercell and SoftBank Mobile Corp. Income at Supercell increased by ¥50,070
million to ¥55,908 million atop an increase in net sales. At SoftBank Mobile Corp., income increased by ¥30,115
million to ¥547,388 million as net sales increased and sales commissions decreased, despite an increase indepreciation.
< Overview of Business Operations >(Principal operational data of SoftBank Mobile Corp. is shown below.)・Number of Subscribers
The cumulative number of subscribers at SoftBank Mobile Corp. as of March 31, 2015 (the “end of the fiscalyear”) stood at 37,766,000.

Net subscriber additions (new subscriptions minus churn) for the fiscal year at

SoftBank Mobile Corp. totaled 1,841,000. This was primarily the result of solid trends in subscriber numbersof smartphones, tablets, and communication modules.

・ARPU
ARPU3 at SoftBank Mobile Corp. for the fiscal year decreased by ¥220 year on year to ¥4,230. This decline in
ARPU primarily reflected an increase in low-ARPU devices. Meanwhile, ARPU was pushed up mainly by growthin the number of LTE subscriptions, which have relatively higher data communication charges compared to 3G
subscriptions.
3

For definitions and calculation methods of ARPU and churn and upgrade rates at SoftBank Mobile Corp., see page 14 “(Reference 2: Definitions
and Calculation Methods of Principal Operational Data) (a) SoftBank Mobile Corp.”

8

SoftBank Corp. Consolidated Financial Report
For the fiscal year ended March 31, 2015

・Number of Units Sold
The number of units sold4 at SoftBank Mobile Corp. for the fiscal year decreased by 820,000 year on year to
13,355,000. This was mainly due to a year-on-year decrease in the number of new subscriptions for the threemonth period ended March 31, 2015 (the “fourth quarter”).
・Churn Rate and Upgrade Rate
The churn rate3 at SoftBank Mobile Corp. for the fiscal year was 1.33%, up 0.06 of a percentage point year on
year. This was mainly due to an increase in the number of churn for non-voice devices reaching the end of their
two-year subscriptions.
The upgrade rate3 was 1.27%, down 0.09 of a percentage point year on year. This slight decrease was caused byan increase in the number of non-voice devices, whose upgrade rates are relatively lower, while the overall numberof upgrades increased from the previous fiscal year.
(b) Sprint Segment(Millions of yen)

Fiscal Year Ended
March 31, 2014

Fiscal Year Ended
March 31, 2015

2,601,031

3,800,021

1,198,990

46.1%(6,119)73,88880,007-

Net sales
Segment income

ChangeChange %(Reference: other operating income (loss) related to Sprint)
Severance costs
associated with
reduction in workforce of Sprint(23,645)(27,129)(3,484)-Gain on partial
pension settlement-

18,726

18,726-Note:
6. The Sprint segment includes the results of Sprint since July 11, 2013.

< Overview of Operations >The segment’s net sales increased by ¥1,198,990 million (46.1 %) year on year to ¥3,800,021 million. The main
factor behind the increase was that in the previous fiscal year Sprint’s results were reflected only from July 11,2013, while in the fiscal year they were reflected for the entire fiscal year.
Segment income was ¥73,888 million, an improvement of ¥80,007 million from a segment loss of ¥6,119
million in the previous fiscal year. The principal cause of this improvement was a decrease in depreciation as aresult of some of the legacy assets becoming fully depreciated as of December 31, 2013.

Other factors that

contributed to the improvement in income included decreases in network and roaming expenses, primarily
resulting from the network enhancement and improvement, and a decrease in subsidies due to the increased
adoption of the installment billing and other program for mobile devices in a shift away from the conventional

4

Units sold: the total number of new subscriptions and handset upgrades.

9SoftBank Corp. Consolidated Financial Report
For the fiscal year ended March 31, 2015

subsidized model, where Sprint pays subsidies to bear a part of the cost of devices for customers.
Severance costs associated with reduction in work force and gain on partial pension settlement at Sprint wererecorded as other operating income and loss on the Company’s consolidated statements of income and do notaffect segment income.

Please refer to page 78 “13. Other operating loss” under “5. Consolidated Financial

Statements (6) Notes to Consolidated Financial Statements” for details.
Although Sprint (under US GAAP) recorded $2.13 billion of impairment losses in the fiscal year, the Company
did not recognize an impairment loss related to Sprint, primarily due to differences in adopted GAAP. Pleaserefer to the Company’s press release “Impairment Losses Related to Sprint (under US GAAP) and Reasons for
Not Recognizing an Impairment Loss Related to Sprint in the Consolidated Financial Statements of SoftBank(under IFRSs),” dated February 5, 2015, for details.
< Overview of Business Operations >・Number of Subscribers
The Sprint platform5 had 2,586,000 net subscriber additions for the fiscal year. This represented a net addition of
2,349,000 in wholesale and affiliate, driven mainly by growth in the number of communication modules forautomobiles, and a net addition of 449,000 in prepaid, despite a 212,000 net loss in postpaid, mainly caused by adecrease in the number of mobile phone subscribers.

As a result, the cumulative number of Sprint platform

subscribers at the end of the fiscal year stood at 56,137,000.

・ABPU
Sprint discloses ABPU6 (Average Billings Per User), which is the sum of ARPU6 and monthly-average equipment
billings,7 as a key performance indicator in addition to ARPU.
Sprint platform postpaid ABPU for the fourth quarter was $61.71, for a $2.42 year-on-year decrease.

This

was mainly due to an increased number of subscriptions to lower price plans offered in conjunction with device
financing programs such as installment sales and leases, as well as tablet subscriptions, whose monthly service
charge is lower than that of mobile phones. On the other hand, equipment billings increased due to the increased
adoption of device financing programs.

・Churn Rate
The Sprint platform postpaid churn rate6 for the fourth quarter was 1.84%, down 0.27 of a percentage point year
on year.

The decrease in the churn rate was primarily attributable to the lower number of voluntary deactivations

as network performance improvements provided a better customer experience.

5

The Sprint platform represents Sprint-operated CDMA and LTE networks.
For definitions and calculation methods of ABPU/ARPU and churn rate of the Sprint platform, see page 14 “(Reference 2: Definitions andCalculation Methods of Principal Operational Data) (b) Sprint Platform.”
7
Equipment billings: the sum of installment billings under the installment billing program and lease fees under the leasing program.
6

10

SoftBank Corp. Consolidated Financial Report
For the fiscal year ended March 31, 2015(c) Fixed-line Telecommunications Segment(Millions of yen)

Fiscal Year Ended
March 31, 2014

Fiscal Year Ended
March 31, 2015

Net sales

548,090541,056(7,034)(1.3%)

Segment income

108,302100,263(8,039)(7.4%)(21,271)-

ChangeChange %(Reference: other operating loss related to SoftBank Telecom Corp.)
Provision forunprofitable contract-(21,271)< Overview of Operations >The segment’s net sales decreased by ¥7,034 million (1.3%) year on year to ¥541,056 million. This was mainly
due to a decline in ADSL service revenue at Ymobile Corporation and a decrease in net sales at SoftBank Telecom
Corp. The revenue decrease at SoftBank Telecom Corp. principally reflected the absence of temporary revenue
from interconnection charges recorded in the previous fiscal year.
Segment income decreased by ¥8,039 million (7.4%) year on year to ¥100,263 million.

This was mainly due

to the decrease in net sales, as well as an increase in outsourcing expenses and telecommunications network charges
at SoftBank Telecom Corp. relating to the telecommunications services network for a corporate customer.
Provision for unprofitable contract related to telecommunications services at SoftBank Telecom Corp. wasrecorded as other operating loss on the Company’s consolidated statements of income and does not affect segment
income.

Please refer to page 78 “13. Other operating loss” under “5. Consolidated Financial Statements (6)Notes to Consolidated Financial Statements” for details.

(d) Internet Segment(Millions of yen)

Fiscal Year Ended
March 31, 2014

Fiscal Year Ended
March 31, 2015

ChangeChange %Net sales

399,869

419,134

19,265

4.8%

Segment income

188,949

187,001(1,948)(1.0%)< Overview of Operations >The segment’s net sales increased by ¥19,265 million (4.8%) year on year to ¥419,134 million.

This increase

was a result of revenue growth in the advertising business at Yahoo Japan Corporation, especially from display
advertising.8 This was partially offset by a revenue decrease in the e-commerce business relating to its new
strategy, which includes eliminating monthly store tenant and other fees.
Segment income decreased by ¥1,948 million (1.0%) year on year to ¥187,001 million.
8

Display advertising is graphical, Flash®, and video advertising that appears on a certain defined area and includes premium advertisements suchas Brand Panel shown on Yahoo! JAPAN’s top page and Yahoo! Display Ad Network, which shows advertisements most suitable to the user basedon the content the user is viewing and their interests, attributes, and geographical location.

11

SoftBank Corp. Consolidated Financial Report
For the fiscal year ended March 31, 2015

(Reference 1: Principal Operational Data)(a) Mobile Communications Segment
Fiscal Year Ended March 2014
ThreeThreeThreeThreemonth
month
month
month
PeriodPeriodPeriodPeriodEnded June Ended Sept. Ended Dec. Ended Mar.
30, 2013
31, 2013
30, 2013
31, 2014

Fiscal Year Ended March 2015
Fiscal Year
Ended
Mar. 31,2014

ThreeThreeThreeThreeFiscal Year
month
month
month
month
Ended
PeriodPeriodPeriodPeriodMar. 31,
Ended June Ended Sept. Ended Dec. Ended Mar.
2015
30, 2014
30, 2014
31, 2014
31, 2015

Full Year

Q1

Q2

Q3

34,76035,92536,48237,04737,401

37,766

9,725

9,899

10,011

10,002

10,066

10,065

10,017

5,199

5,310

5,403

5,546

5,516

5,470

5,305

5,159

Net additions9

810

778

692

1,165

3,445

557

565

355

365

1,841

Postpaid

818

790

716

1,202

3,526

591

594

384

383

1,951

Prepaid

(8)

(12)

(24)

(36)

(81)

(34)

(29)

(29)

(18)

(110)

4,460

4,520

4,490

4,340

4,450

4,280

4,260

4,250

4,130

4,230

2,575

2,734

3,347

3,377

12,033

1,769

2,978

3,832

2,542

11,121

3,023

3,150

3,713

4,289

14,175

2,533

3,428

3,932

3,461

13,355New
subscriptions

1,790

1,904

2,015

2,921

8,629

1,761

1,968

1,847

2,135

7,711

Handsetupgrades

1,233

1,246

1,698

1,368

5,546

772

1,460

2,085

1,326

5,644

Churn rate12

0.99

1.12

1.28

1.66

1.27

1.11

1.27

1.34

1.57

1.33

Postpaid

0.94

1.06

1.24

1.63

1.22

1.07

1.23

1.30

1.55

1.29

1.25

1.23

1.64

1.30

1.36

0.71

1.32

1.87

1.18

1.27

Q1

Q2

Q3

33,29034,068

9,542

Q4

Q4

Full Year

Cumulative
subscribers(Thousands)

SoftBank
Mobile Corp.9
YmobileCorporation
10,11(Incl.) PHS(Thousands)(¥ / month)

SoftBank Mobile Corp.

ARPU12,13(Thousands)

Handsets
shipped14(Thousands)

Units sold15(% / month)(% / month)

Upgrade rate129Includes the number of prepaid mobile phones and communication module service subscribers. The communication module subscribers’ net
additions for the fiscal year were 521,000 and the cumulative number at the end of the fiscal year totaled 4,355,000.
10
eAccess Ltd. changed its company name to Ymobile Corporation on July 1, 2014. Preceding this, eAccess Ltd. merged with WILLCOM, Inc.
on June 1, 2014.
11
Includes the number of prepaid mobile phones and communication module service subscribers. The number of subscribers to the services
provided by Ymobile Corporation under the “Y!mobile” (formerly “EMOBILE” or “WILLCOM”) brand utilizing the communication network of
SoftBank Mobile Corp. is not included.
12
For definitions and calculation methods of ARPU and churn and upgrade rates at SoftBank Mobile Corp., see page 14 “(Reference 2: Definitions
and Calculation Methods of Principal Operational Data) (a) SoftBank Mobile Corp.”
13
ARPU in the fourth quarter of every fiscal year includes the impact from revision of interconnection charges.
14
Handsets shipped: the number of handsets shipped (sold) to dealers. Includes the number of handsets sold to customers at stores operated by
SoftBank Mobile Corp. and the SoftBank ONLINE SHOP.
15
Units sold: the total number of new subscriptions and handset upgrades.

12SoftBank Corp. Consolidated Financial Report
For the fiscal year ended March 31, 2015(b) Sprint Segment
Fiscal Year Ended March 2014

Fiscal Year Ended March 2015

ThreeThreeThreeThreeFiscal Year
ThreeThreeThreeThreeFiscal Year
month
month
month
month
Ended
month
month
month
month
Ended
PeriodPeriodPeriodPeriodMar. 31,
PeriodPeriodPeriodPeriodMar. 31,
Ended June Ended Sept. Ended Dec. Ended Mar.
2014
Ended June Ended Sept. Ended Dec. Ended Mar.
2015
30, 2013
30, 2013
31, 2013
31, 2014
30, 2014
30, 2014
31, 2014
31, 2015

Full Year

Q1

Q2

Q3

55,35454,88754,55355,03755,92957,141

53,25253,93453,55153,331

53,92154,88856,13730,45130,09130,14929,91829,737

29,46529,49529,706

15,215

15,29915,621

15,257

14,715

14,75015,16015,706

7,710

7,862

8,164

8,376

8,879

9,706

10,233

10,725

212

1,625

1,420

1,336

1,222

1,116

1,041

1,004

Net additions16

(520)

(95)

682

(383)

(316)

(220)

590

967

1,249

2,586

Postpaid

194

(360)

58

(231)

(339)

(181)

(272)

30

211

(212)

Prepaid
Wholesale andaffiliate

(486)

84

322

(364)

(444)

(542)

35

410

546

449

(228)

181

302

212

467

503

827

527

492

2,349

-

-

64.24

64.13

63.59

62.75

62.16

61.71

Postpaid

64.20

64.28

64.11

63.52

62.07

60.58

58.90

56.94

Prepaid

26.96

25.33

26.78

26.45

27.38

27.19

27.12

27.50

Postpaid

1.83

1.99

2.07

2.11

2.05

2.18

2.30

1.84

Prepaid

5.22

3.57

3.01

4.33

4.44

3.76

3.94

3.84

Q1

Q2

Q3

Sprint total

53,58854,877

Sprint platform

53,376

Postpaid
Prepaid
Wholesaleand affiliate
U.S. Cellular
and Clearwire17

Q4

Q4Full Year

Cumulative subscribers16(Thousands)(Thousands)

Sprint platform($ / month)
18

ABPU
Postpaid($ / month)

ARPU18(% / month)

Churn rate18

16

Includes the number of communication module service subscribers.
Sprint acquired 411,000 subscribers (352,000 postpaid subscribers and 59,000 prepaid subscribers) through the acquisition of assets from U.S.
Cellular Corporation (“U.S. Cellular”) following its acquisition of U.S. Cellular when the transaction closed on May 17, 2013. Sprint alsoacquired 1,602,000 subscribers (788,000 postpaid subscribers, 721,000 prepaid subscribers, and 93,000 wholesale subscribers) following its
acquisition of Clearwire Corporation (“Clearwire”) when the transaction closed on July 9, 2013, and transferred 29,000 Sprint wholesale
subscribers relating to a Clearwire MVNO arrangement that were originally recognized on the Sprint platform to this category.
18
For definitions and calculation methods of ABPU/ARPU and churn rate of the Sprint platform, see page 14 “(Reference 2: Definitions andCalculation Methods of Principal Operational Data) (b) Sprint Platform.”
17

13

SoftBank Corp. Consolidated Financial Report
For the fiscal year ended March 31, 2015

(Reference 2: Definitions and Calculation Methods of Principal Operational Data)(a) SoftBank Mobile Corp.
i. ARPU
ARPU: Average Revenue Per User per month (rounded to the nearest ¥10)
ARPU = (data-related revenue + basic monthly charge, voice-related revenues, etc.) / number of active subscribers
Number of active subscribers: the total of the monthly numbers of active subscribers for the relevant period((subscribers at the beginning of the month + subscribers at the end of the month) / 2)
Data-related revenue: packet communication and flat-rate charges, basic monthly Internet connection charges,
content-related revenues, etc.
Basic monthly charge and voice-related revenues: basic monthly usage charges, voice call charges, revenues from incoming
calls, device warrantee services, advertising, etc.
Revenues from incoming calls: interconnection charges received from other operators for voice calls from their customers on
their network to SoftBank Mobile phones as a charge for the services provided in the
SoftBank Mobile Corp. service area.
(Calculation of ARPU excludes revenues and subscribers related to communication modules.)ii. Churn rate
Churn rate: average monthly churn rate (rounded to the nearest 0.01%)
Churn rate = number of churn / number of active subscribers
Number of churn: the total number of subscribers that churned during the relevant period
Number of active subscribers: the total of the monthly numbers of active subscribers for the relevant period((subscribers at the beginning of the month + subscribers at the end of the month) / 2)iii. Upgrade rate
Upgrade rate: average monthly upgrade rate (rounded to the nearest 0.01%)
Upgrade rate = number of upgrades / number of active subscribers
Number of upgrades: the total number of upgrades during the relevant period
Number of active subscribers: the total of the monthly numbers of active subscribers for the relevant period((subscribers at the beginning of the month + subscribers at the end of the month) / 2)(b) Sprint Platform
i. ABPU/ARPUABPU: Average Billings Per User per month (rounded to the nearest $.01)
ABPU = (service revenue + equipment billings) / number of active subscribers
Equipment billings: the sum of installment billings under the installment billing program and lease fees under the leasing
program
ARPU: Average Revenue Per User per month (rounded to the nearest $.01)
ARPU = service revenue / number of active subscribers
Number of active subscribers: the total of the monthly numbers of active subscribers for the relevant period((subscribers at the beginning of the month + subscribers at the end of the month) / 2)

ii. Churn rate
Churn rate: average monthly churn rate (rounded to the nearest 0.01%)
Churn rate = number of deactivations / number of active subscribers
Deactivations: the total number of subscribers that churned during the relevant period. The number of deactivations excludes
the number of subscribers who switch between prepaid and postpaid.
Number of active subscribers: the total of the monthly numbers of active subscribers for the relevant period((subscribers at the beginning of the month + subscribers at the end of the month) / 2)

14

SoftBank Corp. Consolidated Financial Report
For the fiscal year ended March 31, 2015

(Reference 3: Capital Expenditure and Depreciation and Amortization)(a) Capital Expenditure (Acceptance Basis)(Millions of yen)
Fiscal Year Ended March 2014

Fiscal Year Ended March 2015

Three-month Three-month Three-month Three-month
Period Ended Period Ended Period Ended Period Ended
June 30, 2013
Sept. 30, Dec. 31, 2013 Mar. 31, 2014
2013

MobileCommunications segment

Fiscal Year Three-month Three-month Three-month Three-month
Ended
Period Ended Period Ended Period Ended Period Ended
Mar. 31, June 30, 2014
Sept. 30,
Dec. 31, 2014 Mar. 31, 2015
2014
2014

Fiscal Year
Ended
Mar. 31,2015

Full Year

Q1

Q2

Q3

Q4

Full Year

Q1

Q2

Q3

Q4

163,581

164,563

170,469

180,347

678,960

123,186

121,794

129,673

162,109536,762

163,574

208,733

91,969464,276

148,793

162,025

213,765

175,266

699,849

Sprintsegment
Fixed-line
Telecommunica-tions segment

9,903

16,74313,091

20,73160,4689,946

14,44715,151

22,43861,982

Internet segment

4,393

2,746

9,194

9,706

26,039

8,534

5,035

9,418

7,081

30,068Others

2,835

4,694

3,082

4,896

15,507

5,552

4,446

8,983

7,197

26,178

180,712352,320

404,569

307,649 1,245,250

296,011

307,747

376,990

Consolidated
total

374,091 1,354,839(b) Depreciation and Amortization(Millions of yen)
Fiscal Year Ended March 2014

Fiscal Year Ended March 2015

Three-month Three-month Three-month Three-month Fiscal Year Three-month Three-month Three-month Three-month
Period Ended Period Ended Period Ended Period Ended
Ended
Period Ended Period Ended Period Ended Period Ended
June 30, 2013
Sept. 30,
Dec. 31, 2013 Mar. 31, 2014 Mar. 31, June 30, 2014
Sept. 30,
Dec. 31, 2014 Mar. 31, 2015
2013
2014
2014

MobileCommunications segment

Q1

Q2

Q3

83,367

92,228Sprintsegment

Fiscal Year
Ended
Mar. 31,2015

Q4

Full Year

Q1

Q2

Q3

Q4

Full Year

100,205

119, 184

394,984

106,600

106,979

110,198

130,546454,323

134,191

152,411

131,859

418,461

128,621

132,763

145,354

172,414579,152

Fixed-line
Telecommunications segment

14,80914,91815,402

16,94862,077

13,93914,98814,931

16,21460,072

Internet segment

3,221

3,218

3,700

5,230

15,369

3,543

4,153

4,396

5,805

17,897

Others

1,902

2,085

2,329

2,697

9,013

2,298

2,299

2,596

3,894

11,087103,299

246,640

274,047

275,918

899,904

255,001

261,182

277,475

Consolidated
total

Note:
7. The Sprint segment includes the results of Sprint since July 11, 2013.

15

328,873 1,122,531

SoftBank Corp. Consolidated Financial Report
For the fiscal year ended March 31, 2015

c. Forecasts on the Consolidated Results of Operations for the Fiscal Year Ending March 2016
Currently it is difficult to provide forecasts on the results in figures due to a large number of uncertain factors
affecting the earnings. The Company will announce its forecasts on the consolidated results of operations when it
becomes possible to make a rational projection.

16

SoftBank Corp. Consolidated Financial Report
For the fiscal year ended March 31, 2015

(2) Analysis of Financial Positiona. Assets, Liabilities and Equity
Assets, liabilities and equity at the end of the fiscal year were as follows:(Millions of yen)

As ofMarch 31, 2014 (Note 8)

As ofMarch 31, 2015

ChangeChange %Total assets

16,690,127

2,1034,169

4,344,042

26.0%

Total liabilities

13,859,745

1,7180,992

3,321,247

24.0%

Total equity

2,830,382

3,853,177

1,022,795

36.1%

102.92120.17

17.25

16.8%

(Reference)
Exchange rate
USD/ JPY

Note:
8. Retrospective adjustments are made in accordance with the adoption of IFRIC 21 “Levies.” Please refer to page 52 “4.
Changes in accounting policies” under “5. Consolidated Financial Statements (6) Notes to Consolidated Financial
Statements” for details on the retrospective adjustments.

(a) Current Assets(Millions of yen)

Item

As of March 31, 2014

As of March 31, 2015

1,963,490

3,258,653

1,295,163

511,562

481,891(29,671)

1,669,545

1,895,648

226,103

370,564

433,01362,449Other financial assets

164,727

197,068

32,341Inventories

251,677

351,152

99,475

Other current assets

281,535

255,399(26,136)

Total current assets

4,330,974

5,957,920

1,626,946

Cash and cash equivalents
SprintTrade and other receivables
SprintChangeCurrent assets totaled ¥5,957,920 million, for a ¥1,626,946 million (37.6%) increase from March 31, 2014 (the“previous fiscal year-end”). The primary components of the change were as follows:i. Cash and cash equivalents increased by ¥1,295,163 million from the previous fiscal year-end.
ii. Trade and other receivables increased by ¥226,103 million from the previous fiscal year-end. This was
mainly due to an increase in installment receivables at Sprint resulting from the increased adoption of theinstallment billing program for mobile devices and an increase of accounts receivables at Brightstar.
iii. Inventories increased by ¥99,475 million from the previous fiscal year-end.

This was mainly due to abuildup of inventories at Sprint to ensure the smooth supply of mobile devices, following a partial revision

17

SoftBank Corp. Consolidated Financial Report
For the fiscal year ended March 31, 2015of the mobile devices business flow during the fiscal year, as well as the impact of the yen’s depreciation
against the U.S. dollar at the end of the fiscal year compared to the previous fiscal year-end.

(b) Non-current Assets(Millions of yen)

Item

As of March 31, 2014

As of March 31, 2015

3,586,327

4,317,448

731,121

1,472,679

2,141,120

668,441

1,539,607

1,663,363

123,756

286,258

353,867

67,6096,177,701

6,903,582

725,8815,303,382

5,993,034

689,652

3,709,526

4,320,296

610,7703,709,526

4,320,296

610,770

675,450

786,834

111,384

663,150

772,433

109,283

677,494582,223(95,271)

579,885496,594(83,291)

Software647,386

757,866

110,480

Game titles

166,522

109,211(57,311)

OthersProperty, plant andequipment
SprintGoodwill
SprintIntangible assets
Sprint
FCC licenses19
SprintTrademarks
SprintCustomer relationships
SprintChange301,323

347,152

45,829Investments accounted forusing the equity method

304,318

1,102,456

798,138

Other financial assets

401,693

662,463

260,770

Deferred tax assets

182,246

235,488

53,242Other non-current assets

167,261

191,449

24,188

Total non-current assets

12,359,153

15,076,249

2,717,096

Non-current assets totaled ¥15,076,249 million, for a ¥2,717,096 million (22.0%) increase from the previous
fiscal year-end.

The primary components of the change were as follows:i. Investments accounted for using the equity method increased by ¥798,138 million from the previous fiscal
year-end. This was mainly due to the recording of dilution gain from changes in equity interest related to
Alibaba.
ii. Property, plant and equipment rose by ¥731,121 million from the previous fiscal year-end. This mainlyreflected an increase of ¥668,441 million at Sprint, mostly due to new acquisitions of telecommunications
19

Licenses issued by the U.S. Federal Communications Commission for use of specified spectrum.

18SoftBank Corp. Consolidated Financial Report
For the fiscal year ended March 31, 2015

equipment to enhance its network and the start of lease sales of mobile devices, as well as the impact of
the yen’s depreciation against the U.S. dollar at the end of the fiscal year compared to the previous fiscal
year-end.
iii. Intangible assets increased by ¥725,881 million from the previous fiscal year-end.

The increase wascaused mainly by an increase in FCC licenses (non-amortized assets from an accounting perspective) of¥610,770 million and an increase in trademarks of ¥111,384 million, primarily due to the impact of the
yen’s depreciation against the U.S. dollar at the end of the fiscal year compared to the previous fiscal yearend. On the other hand, customer relationships and game titles declined by ¥95,271 million and ¥57,311
million, respectively, both mainly due to regular amortization.
(c) Current Liabilities(Millions of yen)

Item

As of March 31, 2014

As of March 31, 2015

1,147,899

1,817,415

669,516

101,977

216,247

114,270

Short-term borrowings

270,529

413,846

143,317

Current portion of
long-term borrowings

393,566

525,898

132,332

139,300

183,557

44,25764,433

113,491

49,058Current portion oflease obligations

264,295

411,453

147,158

Current portion ofpreferred securities-

200,000

200,000

80,20982,661

2,452

1,705,956

1,863,480

157,524

529,465

741,549

212,084

Other financial liabilities

5,847

12,917

7,070

Income taxes payables

246,013

184,175(61,838)

Provisions

93,11554,998(38,117)

Other current liabilities

568,366

739,501

171,135

Total current liabilities

3,767,196

4,672,486

905,290

Interest-bearing debt
SprintCurrent portion of
corporate bonds
SprintOthersTrade and other payables
SprintChangeCurrent liabilities totaled ¥4,672,486 million, for a ¥905,290 million (24.0 %) increase from the previous fiscal
year-end. The primary components of the change were as follows:i. Interest-bearing debt increased by ¥669,516 million from the previous fiscal year-end.

19

SoftBank Corp. Consolidated Financial Report
For the fiscal year ended March 31, 2015

・ Current portion of preferred securities increased by ¥200,000 million.

This was due to thereclassification from non-current liabilities of the preferred (restricted voting) securities of thesubsidiary SFJ Capital Limited issued in September 2011 as it will become possible for the holders to
exercise their put option to redeem the preferred securities in cash in May 2015 or later. SFJ Capital
Limited plans to redeem the preferred securities in full in May 2015.
・ Current portion of lease obligations increased by ¥147,158 million, mainly due to the reclassificationfrom non-current liabilities of the lease obligation relating to the FUKUOKA YAHUOKU! DOME, as
the lease contract is scheduled to end in July 2015.
・ Short-term borrowings increased by ¥143,317 million, mainly due to an increase in short-termborrowings at Brightstar and securitization of telecommunications service accounts receivables carriedout at Sprint.
ii. Trade and other payables increased by ¥157,524 million from the previous fiscal year-end. This was
mainly attributable to an increase in accounts payable – trade of ¥190,636 million at Sprint, primarily due
to an increased purchase of mobile devices and a revision of the payment terms with certain network
equipment and mobile device suppliers.

(d) Non-current Liabilities(Millions of yen)

Item

As of March 31, 2014

As of March 31, 2015

8,022,154

9,789,829

1,767,675

3,257,182

3,886,597

629,4152,243,855

2,116,498(127,357)

4,743,073

6,825,868

2,082,795

3,164,192

3,813,511

649,319

Lease obligations

730,915

744,911

13,996Preferred securities

199,156-(199,156)

Others105,155

102,552(2,603)

Other financial liabilities

41,151

27,142(14,009)

Defined benefit liabilities

77,041

128,282

51,241

Provisions

136,920

155,705

18,785

1,533,021

2,052,615

519,594

1,448,264

1,748,273

300,009

Other non-current liabilities

282,262354,933

72,671

Total non-current liabilities

10,092,549

12,508,506

2,415,957

Interest-bearing debt
SprintLong-term borrowings
Corporate bonds
SprintDeferred tax liabilities
Sprint20

ChangeSoftBank Corp. Consolidated Financial Report
For the fiscal year ended March 31, 2015

Non-current liabilities totaled ¥12,508,506 million, for a ¥2,415,957 million (23.9%) increase from theprevious fiscal year-end. The primary components of the change were as follows:i. Interest-bearing debt increased by ¥1,767,675 million from the previous fiscal year-end.
・ Corporate bonds increased by ¥2,082,795 million.

The increase mainly reflected SoftBank Corp.’sissuance of ¥850,000 million in unsecured subordinated corporate bonds and ¥700,000 million in
unsecured straight corporate bonds, as well as Sprint’s issuance of $1,500 million (¥180,255 million) in
corporate bonds. The increase in Sprint’s corporate bonds also reflected the yen’s depreciation against
the U.S. dollar at the end of the fiscal year compared to the previous fiscal year-end. On the other
hand, Ymobile Corporation paid a full redemption amount to a trustee to redeem its foreign currency
denominated straight corporate bonds of $419.62 million and €200 million before maturity (redemption
date: April 1, 2015), which qualified for extinguishment of financial liabilities, and the relevant bonds
were consequently derecognized.
・ Preferred securities declined by ¥199,156 million due to the reclassification of the preferred (restricted
voting) securities of SFJ Capital Limited into current liabilities.
ii. Deferred tax liabilities increased by ¥519,594 million from the previous fiscal year-end. This was mainly
due to an increase of ¥300,009 million at Sprint, primarily due to the yen’s depreciation against the U.S.
dollar at the end of the fiscal year compared to the previous fiscal year-end.

In addition, a tax effect wasrecognized for the difference between the carrying amount of Alibaba on a consolidated basis, which
increased due to the recording of dilution gain from changes in equity interest, and its carrying amount on
a tax basis.

(e) Equity(Millions of yen)

Equity attributable to owners of
the parent
Non-controlling interests
Total equity

As of March 31, 2014

As of March 31, 2015

Change1,930,441

2,846,306

915,865

899,941

1,006,871

106,930

2,830,382

3,853,177

1,022,795

Equity totaled ¥3,853,177 million, for a ¥1,022,795 million (36.1%) increase from the previous fiscal year-end.
Of this amount, equity attributable to owners of the parent and non-controlling interests increased by ¥915,865
million (47.4%) and ¥106,930 million (11.9%), respectively.

The ratio of equity attributable to owners of theparent to total assets increased by 1.9 percentage points from the previous fiscal year-end to 13.5%.

21

SoftBank Corp. Consolidated Financial Report
For the fiscal year ended March 31, 2015

(Equity Attributable to Owners of the Parent)(Millions of yen)

Item

As of March 31, 2014

As of March 31, 2015

ChangeCommon stock

238,772

238,772-

Capital surplus

405,045374,845(30,200)

Retained earnings

1,168,266

1,740,686

572,420

Treasury stock(51,492)(48,383)

3,109

Accumulated othercomprehensive income

169,850

540,386

370,536

Available-for-sale financial
assets14,122

14,524402

Cash flow hedges(19,942)(7,345)

12,597

Exchange differences ontranslating foreign operations

175,670

533,207357,537

1,930,441

2,846,306

915,865

Total equity attributable toowners of the parent

Equity attributable to owners of the parent totaled ¥2,846,306 million, for a ¥915,865 million (47.4%) increase
from the previous fiscal year-end. This was mainly due to increases from the previous fiscal year-end inretained earnings and accumulated other comprehensive income of ¥572,420 million and ¥370,536 million,
respectively. The increase in retained earnings primarily reflected net income attributable to owners of theparent of ¥668,361 million.

The increase in accumulated other comprehensive income was mainly

attributable to an increase in exchange differences on translating foreign operations due to the yen’s
depreciation against the U.S. dollar at the end of the fiscal year compared to the previous fiscal year-end.
(Non-controlling Interests)
Non-controlling interests totaled ¥1,006,871 million, for a ¥106,930 million (11.9%) increase from theprevious fiscal year-end.

22

SoftBank Corp. Consolidated Financial Report
For the fiscal year ended March 31, 2015b. Cash Flows
Cash flows for the fiscal year were as follows.
Cash and cash equivalents at the end of fiscal year totaled ¥3,258,653 million, for a ¥1,295,163 million increase
from the previous fiscal year-end.
(Millions of yen)

Fiscal Year Ended
March. 31, 2014(Note 9)

Fiscal Year
Ended March 31, 2015

ChangeCash flows from operating activities

860,245

1,155,174

294,929

Cash flows from investing activities(2,718,188)(1,667,271)

1,050,917

Cash flows from financing activities

2,359,375

1,719,923(639,452)(511,155)(242,682)

268,473(Reference)
Cash flows from operating activities- capital expenditure (Note 10)

Notes:
9. Retrospective adjustments are made in accordance with the adoption of IFRIC 21 “Levies.” Please refer to page 52 “4.
Changes in accounting policies” under “5. Consolidated Financial Statements (6) Notes to Consolidated Financial
Statements” for details on the retrospective adjustments.
10. Outlays for purchase of property, plant and equipment and intangible assets.

(a) Cash Flows from Operating Activities
Net cash provided by operating activities totaled ¥1,155,174 million (compared with ¥860,245 million provided
in the previous fiscal year). The primary components of cash flows were as follows:i. Net income totaled ¥763,682 million.
ii. The main items added to net income were ¥1,122,531 million in depreciation and amortization, ¥513,363
million in income taxes, and ¥366,505 million in finance cost.
iii. The main item subtracted from net income was ¥599,815 million in dilution gain from changes in equity interest.
iv. Interest paid was ¥407,665 million.
v. Income taxes paid was ¥405,674 million.
(b) Cash Flows from Investing Activities
Net cash used in investing activities was ¥1,667,271 million (compared with ¥2,718,188 million used in theprevious fiscal year). The primary components of cash flows were as follows:i. Outlays for purchase of property, plant and equipment and intangible assets amounted to ¥1,397,856 million.
ii. Payments for acquisition of investments amounted to ¥287,801 million.

This was mainly attributable toinvestments in Jasper Infotech Private Limited, the operator of the online marketplace snapdeal.com in India;
Travice Inc. (currently Xiaoju Kuaizhi Inc.), the provider of a mobile taxi booking application in China; andothers.
iii. Payments for acquisition and proceeds from sales/redemption of marketable securities for short-term trading
amounted to ¥281,620 million and ¥280,661 million, respectively.

This was mainly attributable toacquisition and sale of marketable securities for short-term trading, primarily by Sprint and Brightstar.

23

SoftBank Corp. Consolidated Financial Report
For the fiscal year ended March 31, 2015(c) Cash Flows from Financing Activities
Net cash provided by financing activities was ¥1,719,923 million (compared with ¥2,359,375 million provided in
the previous fiscal year). The primary components of cash flows were as follows:(Items Increasing Cash Flows)i. Proceeds from long-term interest-bearing debt amounted to ¥2,715,501 million. The components were as
follows:
・ Proceeds from issuance of corporate bonds of ¥1,763,657 million. This mainly consisted of SoftBank
Corp.’s issuance of unsecured subordinated corporate bonds and unsecured subordinated corporate bonds,
as well as Sprint’s issuance of corporate bonds.
・ Proceeds from sale and leaseback of newly acquired equipment of ¥508,118 million.
・ Proceeds from long-term borrowings of ¥443,726 million.

This was mainly due to borrowings madethrough securitization of installment sales receivables at SoftBank Mobile Corp.
ii. Increase in short-term interest-bearing debt, net was ¥108,541 million.

(Items Decreasing Cash Flows)i. Repayment of long-term interest-bearing debt was ¥984,783 million.

The primary components were as

follows:
・ Repayment of long-term borrowings of ¥459,852 million. This was mainly due to SoftBank Mobile Corp.
repaying borrowings made through securitization of installment sales receivables and repayment ofborrowings by SoftBank Corp.
・ Repayment of lease obligations of ¥306,156 million.
・ Redemption of corporate bonds of ¥170,181 million.

This was mainly due to Ymobile Corporation’s

payment of ¥76,722 million to a trustee for redemption of foreign currency denominated straight corporate
bonds before maturity (redemption date: April 1, 2015), as well as SoftBank Corp.’s redemption of its
unsecured straight corporate bonds totaling ¥74,900 million.
ii. Payment for purchase of subsidiaries’ equity from non-controlling interests of ¥52,883 million.

This wasmainly due to the additional purchase of shares of Brightstar Global Group Inc., the parent company (100%ownership) of Brightstar.

24

SoftBank Corp. Consolidated Financial Report
For the fiscal year ended March 31, 2015(d) Trends in Cash Flow-related Indicators
A summary of trends in the Company’s cash flow-related indicators is as follows:
Fiscal year ended
March 31, 2014

Fiscal year ended
March 31, 2015

Ratio of equity attributable to owners of
the parent to total assets

11.6%

13.5 %

Ratio of equity attributable to owners of
the parent to market capitalization

55.5%

39.5%

Net interest-bearing debt / EBITDA ratio

3.6 times

3.8 times

Interest coverage ratio

6.6 times

5.8 times

Ratio of equity attributable to owners of the parent to total assets: equity attributable to owners of the parent / total assets
Ratio of equity attributable to owners of the parent to market capitalization:
equity attributable to owners of the parent / market capitalization
Net interest-bearing debt / EBITDA ratio: net interest-bearing debt / EBITDA
Interest coverage ratio: EBITDA / finance cost
Notes:
11. The above indicators are calculated based on consolidated figures, excluding EBITDA for the fiscal year ended March
31, 2014.
12. Market capitalization = market value of shares at the end of the fiscal year × number of shares outstanding, net oftreasury stock.
13. Net interest-bearing debt = interest-bearing debt - cash position
Cash position = cash and cash equivalents + short-term investments recorded as current assets
14. EBITDA = net sales - cost of sales - selling, general and administrative expenses + depreciation and amortization
EBITDA for the fiscal year ended March 31, 2014 is calculated by adding the annualized Sprint segment’s EBITDA(aggregated amount from July 11, 2013 to March 31, 2014) to the remaining segments’ EBITDA.

(3) Fundamental Policy for Distribution of Profit, and Dividend for the Fiscal Year Ended March 2015
SoftBank Corp.’s basic policy is to maintain a sound financial status while both investing aggressively to ensuresustained growth and returning profits to shareholders. Returns to shareholders include cash dividends paid twice
per year, in principle, as an interim dividend and a year-end dividend.
The Company’s Board of Directors resolved to propose a year-end dividend of ¥20.00 per share for the fiscal year
ended March 2015. Together with the interim dividend of ¥20.00 per share paid in December 2014, this brings theannual dividend for the fiscal year to ¥40.00 per share, the same as the previous fiscal year.

25SoftBank Corp. Consolidated Financial Report
For the fiscal year ended March 31, 2015

2. Management Policies(1) Basic Management Approach
The Company is guided by a corporate philosophy of “Information Revolution – Happiness for everyone.” The
Company aims to be a provider of the most essential technologies and services to people around the world throughits endeavors in various businesses in the information industry, while maximizing its enterprise value.
(2) Target Management Indices
The Company focuses on the medium- to long-term growth of EBITDA (Note15).
Note:
15. EBITDA = net sales - cost of sales - selling, general and administrative expenses + depreciation and amortization(3) Medium- to Long-term Strategies
a. Focus on Mobile Internet
In the ICT market, the rapid penetration of smartphones is causing a shift from PCs to mobile devices as thepreferred means of accessing the Internet. 20

One of the Company’s strategies is to concentrate on businessdevelopment in the field of mobile Internet, which is growing in line with these changes.
According to this strategy, the Company is working to strengthen its network and provide high-speed data
communications services, enhance its lineup of smartphones and tablets, expand its mobile content, optimize
services such as e-commerce for mobile devices, and enhance its cloud services, among other initiatives. By
promoting mobile Internet usage, the entire Company will increase revenues from the use of data communications
services and other services and content.

b. Forming and Expanding a Strategic Synergy GroupThe information industry is characterized by rapid changes in technology, business models, and market needs.
To become a provider of the most essential technologies and services to people around the world, it is imperativethat the Company be flexible regarding any specific technologies or business models, and continue transforming
itself repeatedly in line with the changes in the times, expanding and changing its lines of businesses.
The Company launches new services and businesses from within the Company, and also invests in companies
possessing outstanding technologies or business models, or establishes joint ventures with them to form and expand
a “strategic synergy group” on a global scale.
Each company in the strategic synergy group conducts business and makes decisions autonomously, organicallycombining their respective strengths to create synergies. In this way, the entire group will realize sustainable growth.
(4) Important Management Issues for the Company
a. Steady Profit Growth in the Domestic Telecommunications Business
The Japanese mobile communications market is expected to grow at a slower pace than before going forward, giventhat the domestic mobile communications service subscribers reached 155.12 million 21 and the population

20
21

GSMA Intelligence
The number of mobile communications service subscribers for NTT DOCOMO, INC., KDDI CORPORATION, and SoftBank Mobile Corp. as ofDecember 31, 2014 published by the Telecommunications Carriers Association plus the number of mobile communications (including PHS)

26

SoftBank Corp. Consolidated Financial Report
For the fiscal year ended March 31, 2015

penetration rate stands at 122.1%. 22

Under this condition, to ensure steady profit growth in the Japanese

telecommunications market, the Company concentrates its efforts on acquiring and maintaining smartphone users
as the source of profit, rather than pursuing an overall net addition of mobile communications service subscribers
as before. At the same time, through the merger of four domestic telecommunications companies – SoftBank
Mobile Corp., SoftBank BB Corp., SoftBank Telecom Corp., and Ymobile Corporation – which took place in April
2015, the Company will further strengthen the links between its mobile and fixed-line communications services
while pursuing further operational streamlining and cost reductions.

b. Revamp of the Sprint BusinessIn the Sprint business, the Company continues to face a challenging competitive environment, recording postpaid
net subscriber loss23 of 212,000 for the fiscal year ended March 2015 and segment income was also subdued at¥73,888 million.

To improve this situation, the Company is taking steps to (a) improve its network, (b) strengthen

customer retention and acquisition, and (c) reduce costs.
With regard to network improvement, the Company is continuing to optimize its 3G and LTE networks andincrease the number of base stations carrying the 800 MHz spectrum to provide wide-area coverage and 2.5GHz
spectrum to provide additional data capacity, while densifying the network by increasing the number of multi-bandbase stations. To strengthen customer retention and acquisition the Company is introducing competitive priceplans and expanding its sales network, among other measures.

In reducing costs, the Company is carefully

reviewing all work processes from the ground up and taking steps to rationalize human resources and optimize
procurement of mobile devices by leveraging Brightstar.

3. Basic Approach to the Selection of Accounting Standards
The Company has prepared the consolidated financial statements in accordance with the International Financial
Reporting Standards (IFRSs) from the first quarter of the fiscal year ended March 31, 2014, the three-month period
ended June 30, 2013.

service subscribers at Ymobile Corporation as of December 31, 2014.
The rate is calculated by dividing the above number of mobile communications service subscribers by the population of Japan estimated by the
Ministry of Internal Affairs and Communications Statistics Bureau (provisional estimates as of January 1, 2015).
23
Number of postpaid subscribers on the Sprint Platform.
22

27

SoftBank Corp. Consolidated Financial Report
For the fiscal year ended March 31, 2015

4. Notes to Summary Information
Changes in Accounting Policies and Accounting Estimates(Changes in accounting policies required by IFRSs)
The following standards are applied by the Company during the fiscal year ended March 31, 2015.
Standard
IAS 32(Amendments)
IFRIC 21

Presentation

Outline of the new / revised standards
To clarify the requirements of net presentation of financial assets
and liabilities

LeviesTo clarify the timing of recognition of liabilities related to thepayment of levies

Financial Instruments:

The details are described in “Note 4. Changes in accounting policies” under “5. Consolidated Financial Statements (6)Notes to Consolidated Financial Statements.”(Changes in accounting estimates)
Sprint revised its methodology and assumptions used in estimating the value for returned handsets during the three-month
period ended December 31, 2014.
The details are described in “Note 5. Significant judgments and estimates” under “5. Consolidated Financial Statements(6) Notes to Consolidated Financial Statements.”

28

SoftBank Corp. Consolidated Financial Report
For the fiscal year ended March 31, 2015

5. Consolidated Financial Statements(1) Consolidated Statements of Financial Position(Millions of yen)

As ofMarch 31, 2014*
AssetsCurrent assets
Cash and cash equivalents
Trade and other receivables
Other financial assets
Inventories
Other current assets
Total current assets

As ofMarch 31, 2015

1,963,490
1,669,545
164,727
251,677
281,535
4,330,974

3,258,653
1,895,648
197,068
351,152
255,399
5,957,920

3,586,327
1,539,607
6,177,701
304,318
401,693
182,246
167,261
12,359,153
16,690,127

4,317,448
1,663,363
6,903,582
1,102,456
662,463
235,488
191,449
15,076,249
21,034,169

Note:
Retrospective adjustments are made in accordance with the adoption of IFRIC 21 “Levies.”“Note 4. Changes in accounting policies.”

The details are described in

Non-current assets
Property, plant and equipment
Goodwill
Intangible assets
Investments accounted for using the equity method
Other financial assets
Deferred tax assets
Other non-current assets
Total non-current assets
Total assets

29SoftBank Corp. Consolidated Financial Report
For the fiscal year ended March 31, 2015

(Millions of yen)

As ofMarch 31, 2014*

As ofMarch 31, 2015

Liabilities and equity
Current liabilities
Interest-bearing debt
Trade and other payables
Other financial liabilities
Income taxes payables
Provisions
Other current liabilities
Total current liabilities

1,147,899
1,705,956
5,847
246,013
93,115568,366
3,767,196

1,817,415
1,863,480
12,917
184,175
54,998739,501
4,672,486

Non-current liabilities
Interest-bearing debt
Other financial liabilities
Defined benefit liabilities
Provisions
Deferred tax liabilities
Other non-current liabilities
Total non-current liabilities

8,022,154
41,151
77,041
136,920
1,533,021
282,262
10,092,549

9,789,829
27,142
128,282
155,705
2,052,615
354,933
12,508,506

Total liabilities

13,859,745

17,180,992

EquityEquity attributable to owners of the parent
Common stock
Capital surplus
Retained earnings
Treasury stock
Accumulated other comprehensive income
Total equity attributable to owners of the parent
Non-controlling interests
Total equity
Total liabilities and equity

238,772
405,045
1,168,266(51,492)
169,850
1,930,441
899,941
2,830,382
16,690,127

238,772
374,845
1,740,686(48,383)
540,386
2,846,306
1,006,871
3,853,177
21,034,169

Note:
Retrospective adjustments are made in accordance with the adoption of IFRIC 21 “Levies.”“Note 4. Changes in accounting policies.”

The details are described in30SoftBank Corp. Consolidated Financial Report
For the fiscal year ended March 31, 2015

(2) Consolidated Statements of Income and Comprehensive Income

Consolidated Statements of Income(Millions of yen)

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Gain from remeasurement relating to businesscombination
Other operating loss
Operating income
Finance cost
Equity in income of associates
Dilution gain from changes in equity interest
Other non-operating income (loss)
Income before income tax
Income taxes
Net income
Net income attributable to
Owners of the parent
Non-controlling interests

Earnings per share attributable to owners of the parent
Basic (yen)Diluted (yen)Fiscal year ended
March 31, 2014*
6,666,651(3,961,496)
2,705,155

Fiscal year ended
March 31, 2015
8,670,221(5,327,224)
3,342,997(1,826,567)(2,332,626)

253,886-(55,430)
1,077,044(271,478)
74,402
3,633
40,448924,049(345,798)
578,251(27,668)
982,703(366,505)
76,614
599,815(15,582)
1,277,045(513,363)
763,682

520,250
58,001
578,251

668,361
95,321
763,682436.95434.68562.20558.75

Note:
Retrospective adjustments are made in accordance with the adoption of IFRIC 21 “Levies.”“Note 4. Changes in accounting policies.”

31

The details are described inSoftBank Corp. Consolidated Financial Report
For the fiscal year ended March 31, 2015

Consolidated Statements of Comprehensive Income(Millions of yen)

Fiscal year ended
March 31, 2014*
Net income
Other comprehensive income (loss), net of tax
Items that will not be reclassified to profit or loss
Remeasurements of defined benefit plan
Total items that will not be reclassified to profit
or loss
Items that may be reclassified subsequently to
profit or loss
Available-for-sale financial assets
Cash flow hedges
Exchange differences on translating foreign
operations
Share of other comprehensive income ofassociates
Total items that may be reclassified subsequently to
profit or loss
Total other comprehensive income (loss), net of tax
Total comprehensive income
Total comprehensive income attributable to
Owners of the parent
Non-controlling interests

578,251

763,6823,214(59,377)3,214(59,377)(38,767)(134,002)

3,726
12,862

90,683

409,596

18,588(2,227)(63,498)

423,957(60,284)
517,967

364,580
1,128,262

444,615
73,352517,967

991,671
136,591
1,128,262

Note:
Retrospective adjustments are made in accordance with the adoption of IFRIC 21 “Levies.”“Note 4. Changes in accounting policies.”

32

Fiscal year ended
March 31, 2015

The details are described inSoftBank Corp. Consolidated Financial Report
For the fiscal year ended March 31, 2015

(3) Consolidated Statements of Changes in Equity
For the fiscal year ended March 31, 2014*(Millions of yen)
Equity attributable to owners of the parent

As of April 1, 2013
Effect of retrospective
adjustments
As of April 1, 2013
(after adjustments)
Comprehensive income
Net income
Other comprehensive
loss
Total comprehensive
incomeTransactions with owners
and other transactions
Cash dividends
Transfer of accumulated
other comprehensive
income to retained
earnings
Purchase and disposal oftreasury stock
Changes from businesscombination
Acquisition of options toconvert tosubsidiaries’ common
stocksChanges in interests in
subsidiaries
Share-based paymenttransactions
Other
Total transactions withowners and othertransactions
As of March 31, 2014

Commonstock
238,772

Capitalsurplus436,704

Retainedearnings
712,088

Treasurystock(22,834)--(18,315)

238,772

436,704-

Accumulated
othercomprehensive
incomeNoncontrollinginterests Total equity
317,684 1,930,440

248,026

Total
1,612,756--(18,315)(654)(18,969)

693,773(22,834)

248,026

1,594,441

317,030

1,911,471-

520,250--

520,250

58,001

578,251

-

-

-

-

(75,635)(75,635)

15,351(60,284)--

520,250-(75,635)

444,615

73,352517,967--(47,669)--(47,669)(15,365)(63,034)

-

-

2,541

-

(2,541)

-

-

-

-

(13)

(629)

(28,658)-(29,300)-(29,300)

-

-

-

-

-

-

571,758

571,758-(10,323)---(10,323)-(10,323)-(21,619)---(21,619)(57,184)(78,803)

-

296

-

-

-

296

11,21911,515

-

-

-

-

-

-

(869)

(869)

-

(31,659)(45,757)(28,658)(2,541)(108,615)

509,559

400,944

238,772

405,045

1,168,266(51,492)

169,850

1,930,441

899,941

2,830,382

Note:
Retrospective adjustments are made in accordance with the adoption of IFRIC 21 “Levies.”“Note 4. Changes in accounting policies.”

33

The details are described inSoftBank Corp. Consolidated Financial Report
For the fiscal year ended March 31, 2015

For the fiscal year ended March 31, 2015
(Millions of yen)
Equity attributable to owners of the parent

As of April 1, 2014
Effect of retrospective
adjustments*
As of April 1, 2014
(after adjustments)
Comprehensive income
Net income
Other comprehensive
incomeTotal comprehensive
incomeTransactions withowners and othertransactions
Cash dividends
Transfer of accumulated
other comprehensive
income to retained
earnings
Purchase and disposalof treasury stock
Changes from businesscombination
Changes in interestsin subsidiaries
Share-based paymenttransactions
Other
Total transactions
with owners andother transactions
As of March 31, 2015

Accumulated
othercomprehensive
income169,617

Total
1,955,374

Noncontrollinginterests
903,296-

233(24,933)(3,355)(28,288)

1,168,266(51,492)

169,850

1,930,441

899,941

2,830,382-

668,361--

668,361

95,321

763,682

-

-

-

-

323,310323,310

41,270364,580--

668,361-

323,310

991,671

136,591

1,128,262--(47,547)--(47,547)(37,612)(85,159)--(47,226)-

47,226

-

-

-

-

-

(1,168)

3,109

-

1,941

-

1,941

-

-

-

-

-

-

4,218

4,218

-

(33,162)---(33,162)

11,110(22,052)

-

2,962

-

-

-

2,962

(7,094)(4,132)

-

-

-

-

-

-

(283)

(283)

-

(30,200)(95,941)

3,109

47,226(75,806)(29,661)(105,467)

238,772

374,845

1,740,686(48,383)

540,386

2,846,306

1,006,871

3,853,177

Commonstock
238,772

Capitalsurplus405,111Retainedearnings
1,193,366

Treasurystock(51,492)-(66)(25,100)

238,772

405,045-

Note:
Retrospective adjustments are made in accordance with the adoption of IFRIC 21 “Levies.”“Note 4. Changes in accounting policies.”

34

Total equity
2,858,670

The details are described inSoftBank Corp. Consolidated Financial Report
For the fiscal year ended March 31, 2015

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

Fiscal year ended
March 31, 2014*
Cash flows from operating activities
Net income
Depreciation and amortization
Gain from remeasurement relating to businesscombination
Finance cost
Equity in income of associates
Dilution gain from changes in equity interest
Other non-operating (income) loss
Income taxes
Increase in trade and other receivables
Increase in trade and other payables

Fiscal year ended
March 31, 2015

578,251
899,904

763,682
1,122,531(253,886)-

271,478(74,402)(3,633)(40,448)345,798(106,055)
21,375366,505(76,614)(599,815)
15,582
513,363(85,357)
27,809Other(163,609)(84,815)

Subtotal

1,474,773

1,962,871

7,546(306,697)(315,377)
860,245

5,642(407,665)(405,674)
1,155,174(1,371,400)(1,397,856)(36,193)
81,244(287,801)
133,888(1,663,539)(47,862)

310,104-(172,129)(281,620)

179,545

280,661(45,820)(2,718,188)(66,681)(1,667,271)(201,794)

108,541

4,698,294(1,971,594)

2,715,501(984,783)(83,232)(52,883)(47,600)(14,747)(19,952)
2,359,375(47,519)(37,834)
18,9001,719,923

23,00187,337524,433
1,439,057
1,963,490

1,295,163
1,963,490
3,258,653

Interest and dividends received
Interest paid
Income taxes paid
Net cash provided by operating activities
Cash flows from investing activities
Purchase of property, plant and equipment, andintangible assets
Payments for acquisition of investments
Proceeds from sales/redemption of investments
Decrease from acquisition of control oversubsidiaries
Proceeds from settlement of foreign currency forward
contract for acquisition of control of subsidiaries
Payments for acquisition of marketable securities for
short-term trading
Proceeds from sales/redemption of marketablesecurities for short-term trading
Other
Net cash used in investing activities
Cash flows from financing activities(Decrease) increase in short-term interest-bearing debt,
net
Proceeds from long-term interest-bearing debt
Repayment of long-term interest-bearing debt
Payment from purchase of subsidiaries’ equity from
non-controlling interests
Cash dividends paid
Cash dividends paid to non-controlling interests
Other
Net cash provided by financing activities
Effect of exchange rate changes on cash and cash
equivalents
Increase in cash and cash equivalents
Cash and cash equivalents at the beginning of the year
Cash and cash equivalents at the end of the year

Note:
Retrospective adjustments are made in accordance with the adoption of IFRIC 21 “Levies.”“Note 4. Changes in accounting policies.”

35

The details are described inSoftBank Corp. Consolidated Financial Report
For the fiscal year ended March 31, 2015(5) Significant Doubt about Going-Concern Assumption
There are no applicable items for the fiscal year ended March 31, 2015.
(6) Notes to Consolidated Financial Statements
1. Reporting entity
SoftBank Corp. is a corporation domiciled in Japan. The registered address of SoftBank Corp.’s head office isdisclosed on our website (http://www.softbank.jp/). These consolidated financial statements are composed of
SoftBank Corp. and its subsidiaries (the “Company”). The Company engages in various businesses in theinformation industry, with its base in the Mobile Communications segment, the Sprint segment, the Fixed-Line
Telecommunications segment, and the Internet segment.
2. Basis of preparation of consolidated financial statements(1) Compliance with IFRSs
The Company meets the criteria of a “Specified Company” defined under Article 1-2 of the Regulations
Concerning Terminology, Forms, and Preparation Methods of Consolidated Financial Statements (“theRegulations of Consolidated Statements”) (Ministry of Finance Regulation No. 28, 1976), and accordingly the
consolidated financial statements of the Company have been prepared in compliance with International Financial
Reporting Standards (“IFRSs”) pursuant to Article 93 of the Regulations of Consolidated Statements.
(2) Basis of measurement
These consolidated financial statements have been prepared on the historical cost basis, except for certain items,
such as financial instruments, that are measured at fair value as described in “Note 3. Significant accounting
policies.”(3) Presentation currency and unit of currency
These consolidated financial statements have been presented in Japanese yen, which is the currency of the primaryeconomic environment of SoftBank Corp. (hereinafter “functional currency”), and are rounded to the nearest
million yen.
(4) Changes in presentation(Consolidated statements of income)a. “Dilution gain from changes in equity interest” which was included in “Other non-operating income (loss)” forthe fiscal year ended March 31, 2014 is separately presented for the fiscal year ended March 31, 2015 since thesignificance of the amount increased. In order to reflect the change, ¥3,633 million which was included in“Other non-operating income (loss)” in the consolidated statements of income for the fiscal year ended March
31, 2014, is reclassified as “Dilution gain from changes in equity interest.”(Consolidated statements of cash flows)a. “Dilution gain from changes in equity interest” which was included in “Other non-operating (income) loss” in
net cash provided by operating activities for the fiscal year ended March 31, 2014 is separately presented forthe fiscal year ended March 31, 2015 since the significance of the amount increased. In order to reflect thechange, ¥3,633 million which was included in “Other non-operating (income) loss” in net cash provided byoperating activities in the consolidated statements of cash flows for the fiscal year ended March 31, 2014, isreclassified as “Dilution gain from changes in equity interest.”
b. “Payments for acquisition of marketable securities for short-term trading” which were included in “Payments
for acquisition of investments” and “Proceeds from sales/redemption of marketable securities for short-term
trading” which were included in “Proceeds from sales/redemption of investments” in net cash used in investing
activities for the fiscal year ended March 31, 2014 are separately presented for the fiscal year ended March 31,
2015 since the significance of the amount increased. In order to reflect the changes, ¥172,129 million which
was included in “Payments for acquisition of investments” and ¥179,545 million which was included in“Proceeds from sales/redemption of investments” in net cash used in investing activities in the consolidated

36

SoftBank Corp. Consolidated Financial Report
For the fiscal year ended March 31, 2015

statements of cash flows for the fiscal year ended March 31, 2014, are reclassified as “Payments foracquisition of marketable securities for short-term trading” and as “Proceeds from sales/redemption ofmarketable securities for short-term trading,” respectively.
(5) New standards and interpretations not yet adopted by the Company
New standards and interpretations which are newly established or amended before the approval date of theconsolidated financial statements, not yet adopted by the Company and which may have potential impacts are as
follows. The Company is currently evaluating the potential impacts.

Mandatory adoption(From the year
Standard/interpretation
IFRS 9Financial

beginning)
January 1, 2018

Instruments

IFRS 15

Revenue

January 1, 2017

To be adopted

Outline of the new/revised standards
IFRS
9replacesa part of the previous IAS 39. Main
Not determined
revisions are:to revise classification into measurement categories offinancial instruments (amortized costs and fair values)
and measurement;
to revise the treatment of changes in fair values offinancial liabilities measured at fair values;
to revise the eligibility requirement of hedged items andhedging instruments, and requirements related to theeffectiveness of the hedge; andto revise the measurement approach for impairment byintroducing an impairment model based on the expectedcredit loss.
by the GroupNot determined IFRS 15 replaces a part of the previous IAS 11 and IAS 18.

Main revisions are:fromto require revenue recognition by the following five steps:

contracts
witha. identify the contracts with the customer

customersb. identify the performance obligations in the contractc. determine the transaction priced. allocate the transaction price to each performanceobligation in the contract
e. recognise revenue when (or as) a performanceobligation is satisfied
to revise the treatment for contract costs, license andguarantee of products; andto increase the disclosure related to revenue recognition.

37

SoftBank Corp. Consolidated Financial Report
For the fiscal year ended March 31, 2015

(6) Definition of company name and abbreviation used in the notes
Company names and abbreviations used in the notes, except as otherwise stated or interpreted differently in thecontext, are as follows:
Company name / Abbreviation

Definition“SoftBank Corp.”

SoftBank Corp. (stand-alone basis)

The “Company”

SoftBank Corp. and its subsidiaries*Each of the following abbreviations indicates the respective company, and its subsidiaries if any.
“Sprint”

Sprint Corporation (formerly Sprint Nextel Corporation)“Clearwire”

Clearwire Corporation“GungHo”

GungHo Online Entertainment, Inc.

“Supercell”

Supercell Oy“Kahon 3”

Kahon 3 Oy

“SoftBank C&S”

SoftBank Commerce & Service Corp.

“Alibaba”

Alibaba Group Holding Limited

3. Significant accounting policies
Accounting policies the Company has adopted have been applied consistently to all periods presented in these
consolidated financial statements.
(1) Basis of consolidationa. Subsidiaries
A subsidiary is an entity that is controlled by SoftBank Corp.
The Company controls an entity when the Company is exposed to, or has rights to, variable returns from its
involvement with the entity and has the ability to affect those returns through its power over the entity.
The subsidiaries’ financial statements are consolidated from the date when control is acquired (“acquisitiondate”) until the date when the control is lost.
When necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting
policies in line with those used by the Company.
Non-controlling interests consist of those interests at the acquisition date and any adjustments for subsequentchanges in those interests.
Total comprehensive income of subsidiaries is generally attributed to the owners of the parent and to thenon-controlling interests, even if this results in the non-controlling interests having a deficit balance.
All intragroup balances and transactions and unrealized gain or loss arising from intragroup transactions are
eliminated on consolidation.
Changes in the Company’s ownership interests in subsidiaries that do not result in the Company’s losing
control over the subsidiaries are accounted for as equity transactions. The carrying amounts of theCompany’s interests and the non-controlling interests are adjusted to reflect the changes in their interests in thesubsidiaries.

38

SoftBank Corp. Consolidated Financial Report
For the fiscal year ended March 31, 2015

Any difference between the amount by which the non-controlling interests are adjusted and the fair value of theconsideration paid or received is recognized directly in equity and attributed to owners of the parent.
When SoftBank Corp. loses control of a subsidiary, a gain or loss is calculated as the difference between:
・the aggregate of the fair value of the consideration received and the fair value of any retained interest, and:・the net carrying amount of the assets (including goodwill), liabilities, and non-controlling interests of thesubsidiary when a control is lost.
Any amounts previously recognized in accumulated other comprehensive income in relation to the former
subsidiaries are reclassified to profit or loss.
b. Associates
An associate is an entity over which SoftBank Corp. has significant influence in the financial and operating
policy decisions but does not have control or joint control.
Investments in associates are accounted for using the equity method and initially recognized at cost. The
investment is adjusted thereafter to recognize the Company’s interest of the profit or loss and othercomprehensive income from the date of acquisition to the date of loss of significant influence.
However, regarding preferred stock investment in associates, when the feature of preferred stock is
substantively different from common stock, it is not accounted for using the equity method, and it isdesignated as the financial assets at fair value through profit or loss (“financial assets at FVTPL”). Pleaserefer to“(4) Financial instruments” under “Note 3. Significant accounting policies” for details.
When the loss of an associate exceeds the Company’s interest in that associate, long-term interests that, in
substance, form a part of the net investment in the company are decreased to zero, and no additional loss isrecognized except when the Company incurs legal or constructive obligations to or makes payments on behalfof the associate.
Unrealized gains or losses on intercompany transactions with associates are added to or deducted from thecarrying amount of the investments only to the extent of the Company’s interest in the associates.
Any excess in the cost of acquisition of an associate over the Company’s interest of the net fair value of theidentifiable assets and liabilities recognized at the date of acquisition is recognized as goodwill and included
within the carrying amount of the investments in associates.
Because goodwill is not separately recognized, it is not tested for impairment separately. Instead, the entire
carrying amount of the investment in associates, including goodwill, is tested for impairment as a single asset
whenever objective evidence indicates that the investment may be impaired.
The Company applies the equity method to the financial statements of Alibaba, an associate of the Company,
on a three-month time lag, as it is impracticable to conform the reporting period of Alibaba due to the contract
with Alibaba. Adjustments are made for significant transactions or events that occurred during theintervening period and which were publicly announced by Alibaba.
(2) Business combinations
Business combinations are accounted for using the acquisition method at the acquisition date.
The consideration transferred in a business combination is measured as the sum of the assets transferred by theCompany, liabilities assumed by the Company from the former owners of the acquiree, and the fair value at theacquisition date of the equity interests issued by the Company. Acquisition-related costs are recognized in profit
or loss as incurred.
At the acquisition date, the identifiable assets acquired and the liabilities assumed are recognized at their fairvalue, except that:・deferred tax assets or liabilities and assets or liabilities related to employee benefits are recognized andmeasured in accordance with IAS 12 “Income Taxes” and IAS 19 “Employee Benefits,” respectively;

39

SoftBank Corp. Consolidated Financial Report
For the fiscal year ended March 31, 2015

・liabilities or equity instruments related to share-based payment arrangements of the acquiree or share-based
payment arrangements of the Company entered into to replace share-based payment arrangements of theacquiree are measured in accordance with IFRS 2 “Share-based Payment” at the acquisition date; and・assets or disposal groups that are classified as held for sale are measured in accordance with IFRS 5“Non-current Assets Held for Sale and Discontinued Operations.”
The excess of the consideration transferred and the amount of any non-controlling interest in the acquiree overthe fair value of the identifiable net assets acquired at the acquisition date is recorded as goodwill. If theconsideration transferred and the amount of any non-controlling interest in the acquiree is less than the fair valueof the identifiable net assets of the acquired subsidiary, the difference is recognized immediately in profit or loss.
On an acquisition-by-acquisition basis, the Company chooses a measurement basis of non-controlling interests ateither fair value or by the proportionate share of the non-controlling interests in the recognized amounts of theacquiree’s identifiable net assets. When a business combination is achieved in stages, the Company’s
previously held interest in the acquiree is remeasured to fair value at the acquisition date and the resulting gain or
loss, if any, is recognized in profit or loss.
Amounts arising from changes in the value of interests in the acquiree prior to the acquisition date that havepreviously been recognized in other comprehensive income are recognized in profit or loss.
If the initial accounting for a business combination is incomplete by the end of the fiscal year, the Company
reports in its consolidated financial statements provisional amounts for the items for which the accounting is
incomplete. The Company retrospectively adjusts the provisional amounts recognized at the acquisition date as
an adjustment during the measurement period when new information about facts and circumstances that existed
as of the acquisition date and, if known, would have affected the recognized amounts for the businesscombination. The measurement period shall not exceed one year from the acquisition date.
Goodwill arising in business combinations that occurred before the date of transition to IFRSs is carried over at
the carrying amount under the previous accounting principles (Japanese Generally Accepted Accounting
Principles “JGAAP”) as of the date of transition to IFRSs, and recorded by that amount after an impairment test.
(3) Foreign currency translationa. Transactions denominated in foreign currencies
The financial statements of each company are prepared in their functional currency. Transactions incurrencies other than the entity’s functional currency (foreign currencies) are translated at the rates of
exchange prevailing at the dates of the transactions.
Monetary items denominated in foreign currencies are translated into the functional currency at the rates
prevailing at the end of the fiscal year. Non-monetary items carried at fair value that are denominated inforeign currencies are translated into the functional currency at the rates prevailing at the date when the fairvalue was measured.
Exchange differences arising from translation are recognized in profit or loss, except for exchange differences
arising from non-monetary available-for-sale financial assets measured through other comprehensive income
and cash flow hedges are recognized in other comprehensive income.
b. Foreign operations
For the purposes of presenting consolidated financial statements, the assets and liabilities of the Company’s
foreign operations (including goodwill arising from acquisitions and the adjustments of fair value) aretranslated into Japanese yen using exchange rates prevailing at the end of the fiscal year.
Income, expenses and cash flows are translated into Japanese yen by using the average exchange rates for eachquarter. When the translated amounts do not approximate the amounts translated by the exchange rates at thedates of the transactions, the exchange rates at the transaction dates are used for the translation.

40

SoftBank Corp. Consolidated Financial Report
For the fiscal year ended March 31, 2015

The exchange rates used in the translation are described in “Note 11. Foreign exchange rate.”
Exchange differences arising from translating the financial statements of foreign operations are recognized inother comprehensive income and cumulative differences are included in accumulated other comprehensive
income.
These cumulative differences are reclassified from equity to profit or loss when the Company loses control orsignificant influence over the foreign operation.
(4) Financial instruments
a. Financial instruments
Financial assets and financial liabilities are recognized when the Company becomes a party to the contract
provision of the instrument.
Financial assets and financial liabilities are measured at fair value at initial recognition. Transaction costs thatare directly attributable to the acquisition of financial assets and issuance of financial liabilities other thanfinancial assets at FVTPL and financial liabilities at fair value through profit or loss (“financial liabilities at
FVTPL”) are added to the fair value of the financial assets or deducted from the fair value of financial
liabilities at initial recognition. Transaction costs directly attributable to the acquisition of financial assets at
FVTPL and financial liabilities at FVTPL are recognized in profit or loss.
b. Non-derivative financial assets
Non-derivative financial assets are classified into “financial assets at FVTPL,” “held-to-maturity investments,”“loans and receivables,” and “available-for-sale financial assets.” The classification depends on the natureand purpose of the financial assets and is determined at initial recognition.
All purchase and sales of financial assets made in a regular way are recognized and derecognized on a tradedate basis. The purchase and sales made in a regular way refer to acquiring or disposing financial assets undera contract that requires the delivery of assets within a time frame established by regulation or convention in themarketplace.
(a) Financial assets at FVTPL
Financial assets are classified into “financial assets at FVTPL” when they are held for trading purposes ordesignated as financial assets at FVTPL.
Financial assets other than derivatives, which are mainly acquired to be sold in the short term, are classified
as held for trading purposes.
The Company designates a financial asset as a financial asset at FVTPL upon initial recognition, if:・the financial assets are managed in accordance with the Company’s documented risk management policy
or investment strategy; and・its performance is reviewed on the fair value basis by the Company’s management to make decisions
about the investment plan.
Also, while it is required to separate an embedded derivative from its host, when it is unable to measure theembedded derivative separately either at acquisition or at the end of a subsequent financial reporting period,
the entire hybrid contract is designated and accounted for as financial assets at FVTPL.
Subsequent to initial recognition, financial assets at FVTPL are measured at fair value, with any gains orloss arising from changes in fair value, dividend income and interest income recognized in profit or loss.
(b) Held-to-maturity investments
Non-derivative financial assets with fixed or determinable payments and fixed maturity dates that theCompany has the positive intent and ability to hold to maturity are classified as “held-to-maturity
investments.”

41

SoftBank Corp. Consolidated Financial Report
For the fiscal year ended March 31, 2015

Subsequent to initial recognition, held-to-maturity investments are measured at amortized cost using theeffective interest method, less any impairment. Interest income based on the effective interest rate isrecognized in profit or loss.
(c) Loans and receivables
Non-derivative financial assets with fixed or determinable payments that are not quoted in an active market
are classified as “loans and receivables.”Subsequent to initial recognition, loans and receivables are measured at amortized cost using the effective
interest method, less any impairment. Interest income based on the effective interest rate is recognized in
profit or loss.
(d) Available-for-sale financial assets
Non-derivative financial assets are classified as “available-for-sale financial assets,” if:・they are designated as “available-for-sale financial assets”; or・they are classified neither as “financial assets at FVTPL,” “held-to-maturity investments,” nor as “loans
and receivables.”Subsequent to initial recognition, available-for-sale financial assets are measured at fair value and gains orlosses arising from changes in fair value are recognized in other comprehensive income. Exchange
differences arising on monetary financial assets classified as available-for-sale financial assets, interest
income calculated using the effective interest method relating to available-for-sale financial assets anddividends received are recognized in profit or loss.
(e) Impairment of financial assets
Among financial assets other than those at FVTPL, available-for-sale equity instruments are assessed forany objective evidence of impairment at the end of the fiscal year and at the end of each quarter, and theother assets are assessed for any objective evidence of impairment at the end of the fiscal year. Financial
assets are impaired when there is objective evidence that loss events occurred subsequent to initialrecognition of the financial assets and when estimated negative future cash flows of the financial assets fromthose events can be reasonably estimated.
For available-for-sale equity instruments, a significant or prolonged decline in the fair value below the cost
is considered to be objective evidence of impairment. In addition, objective evidence of impairment of all
financial assets could include:・significant financial difficulty of the issuer or borrower;・breach of contract, such as a default or delinquency in interest or principal payments;
・high possibilities of borrowers’ bankruptcy or entering financial reorganization; or・disappearance of an active market for the financial assets.
The Company assesses the existence of objective evidence of impairment individually for separately
significant assets or collectively for assets with no individual significance.
When there is objective evidence of impairment on loans and receivables or held-to-maturity investments,
the difference between the asset’s carrying amount and the present value of estimated future cash flows,
discounted at the original effective interest rate, is recognized in profit or loss as an impairment loss. The
impairment loss is recognized through the use of an allowance account, and the carrying amount of a loan
and receivable is written off against the allowance account when it is considered uncollectible.
The carrying amount of held-to-maturity investments is reduced by the impairment loss directly. If, in a
subsequent period, the amount of the impairment loss decreases and the decrease can be related objectively
to an event occurring after the impairment was recognized, the previously recognized impairment loss isreversed through profit or loss to the extent that the carrying amount of the financial asset does not exceed
what the amortized cost would have been had the impairment not been recognized.
When there is objective evidence that an available-for-sale financial asset is impaired, previously

42

SoftBank Corp. Consolidated Financial Report
For the fiscal year ended March 31, 2015

recognized accumulated other comprehensive income is transferred to profit or loss.
equity instruments classified as available-for-sale financial assets are not reversed.

Impairment losses on(f) Derecognition of financial assets
The Company derecognizes a financial asset when the contractual rights to the cash flows from the financial
asset expire or when it transfers the financial asset and substantially all the risks and rewards of ownershipof the financial asset.
c. Non-derivative financial liabilities
The Company’s non-derivative financial liabilities include interest-bearing debt and trade and other payables.
These financial liabilities are measured at amortized cost using the effective interest method, subsequent toinitial recognition.
The Company derecognizes financial liabilities when the Company’s obligations are discharged, canceled or
expired.
d. Derivatives and hedge accounting(a) Derivatives
The Company is engaged in derivative transactions, including foreign currency forward contract andinterest rate swaps in order to manage its exposure to foreign exchange rate and interest rate risks.
Derivatives are initially recognized at fair value at the date the derivative contracts are entered into and aresubsequently measured at their fair values at the end of fiscal year. Changes in the fair value of derivative
are recognized in profit or loss immediately unless the derivative is designated and effective as a hedging
instrument. Derivative financial assets not designated as hedging instruments are classified into “financial
assets at FVTPL” and derivative financial liabilities not designated as hedging instruments are classified
into “financial liabilities at FVTPL.”(b) Hedge accounting
The Company designates certain derivative transactions as hedging instruments and accounts for them ascash flow hedges.
At the inception of the hedge, the Company formally designates and documents the hedge relationshipqualifying for hedge accounting, along with its risk management objectives and its strategy for undertaking
various hedge transactions. At the inception of the hedge and on an ongoing basis, the Company evaluates
whether the hedging instrument is highly effective in offsetting changes in fair values or cash flows of therelevant hedged item during the underlying period.
The effective portion of changes in the fair value of derivatives that are designated and qualifying as cash
flow hedges is recognized in other comprehensive income and accumulated in equity. Accumulated othercomprehensive income is transferred to profit or loss through a line item relating to the hedged item in the
consolidated statement of income, in the periods when the cash flows from the hedged item affect profit orloss. Any ineffective portion of changes in fair value of derivatives is recognized immediately in profit orloss.
When the hedged forecasted transaction subsequently results in the recognition of a non-financial asset or a
non-financial liability, the Company removes the associated gains or losses previously recognized inaccumulated other comprehensive income and includes them in the initial amount of the cost of thenon-financial asset or non-financial liability (basis adjustment).
Hedge accounting is discontinued when the Company revokes the hedging relationship, when the hedging
instrument expires or is sold, terminated or exercised or when hedge no longer meets the criteria for hedge
accounting.
When hedge accounting is discontinued, any gains or losses recognized in accumulated othercomprehensive income remains in equity and is reclassified to profit or loss when the forecasted transaction

43

SoftBank Corp. Consolidated Financial Report
For the fiscal year ended March 31, 2015

is ultimately recognized in profit or loss. When a forecasted transaction is no longer expected to occur,
the gains or losses recognized in accumulated other comprehensive income are reclassified immediately to
profit or loss.
(c) Embedded derivatives
Derivatives embedded in non-derivative host contracts (“embedded derivatives”) are separated from thehost contracts and accounted for as separate derivatives when their economic characteristics and risks are
not closely related to those of the host contracts and the whole financial instruments, including embedded
derivatives, are not measured at FVTPL. While it is required to separate an embedded derivative from its
host, when it is unable to measure the embedded derivative separately either at acquisition or at the end of asubsequent financial reporting period, the entire hybrid contract is designated and accounted for as financial
assets at FVTPL.
e. Offsetting financial assets and financial liabilities
Financial assets and financial liabilities are offset, and the net amounts are presented in the consolidated
statement of financial position when, and only when, the Company currently has a legally enforceable right to
set off the recognized amounts, and intends either to settle on a net basis or to realize the assets and settle theliabilities simultaneously.
(5) Cash and cash equivalents
Cash and cash equivalents consist of cash, demand deposits and short-term investments with maturities of threemonths or less that are readily convertible to cash and subject to insignificant risk of change in value.
(6) Inventories
Inventories are stated at the lower of cost or net realizable value. Inventories mainly consist of mobile handsets
and accessories. Their costs comprise all costs of purchase and other costs incurred in bringing the inventories
to their present location and condition. The costs are mainly calculated by the moving-average method.
Net realizable value is the estimated selling price in the ordinary course of business, less estimated costs
necessary to make the sale.
(7) Property, plant and equipment
Property, plant and equipment are measured on a historical cost basis, less accumulated depreciation andaccumulated impairment losses. Historical cost includes costs directly attributable to the acquisition of the asset
and the initial estimated costs related to disassembly, retirement and site restoration.
Property, plant and equipment are depreciated mainly using the straight-line method over the estimated useful
lives of each component. The depreciable amount is calculated as the cost of an asset, less its residual value.
Land and construction in progress are not depreciated.
The estimated useful lives of major components of property, plant and equipment are as follows:
Buildings and structures
Buildings

30 - 50 years

Other

5 - 15 years

Telecommunications equipment
Wireless equipment, switching equipment,
and other network equipment

3 - 30 years

Towers15 - 42 years

Other

5 - 40 years

Equipment and fixtures
Leased mobile devices

2 - 3 years

Other

4 - 10 years

44SoftBank Corp. Consolidated Financial Report
For the fiscal year ended March 31, 2015

The depreciation methods, useful lives, and residual values of assets are reviewed at the end of each fiscal year,
and any changes are applied prospectively as a change in an accounting estimate.
Assets held under finance leases are depreciated over their estimated useful lives when there is certainty thatownership will be obtained by the end of the lease term. However, when there is no certainty that ownershipwill be obtained by the end of the lease term, assets are depreciated over the shorter of the lease term or theirestimated useful lives.
(8) Goodwill
Please refer to “(2) Business combinations” in “Note 3. Significant accounting policies” for the measurement of
goodwill at initial recognition. Goodwill is measured at cost less accumulated impairment losses.
Goodwill is not amortized, and is tested for impairment when there is an indication of impairment incash-generating units or groups of cash-generating units to which goodwill has been allocated, and annuallyregardless of any indication of impairment. Impairment is described in “(11) Impairment of property, plant andequipment, intangible assets and goodwill” in “Note 3. Significant accounting policies.”
The Company’s policy for goodwill arising from the acquisition of an associate is described in “(1) Basis of
consolidation” in “Note 3. Significant accounting policies.”(9) Intangible assets
Intangible assets are measured on a historical cost basis at cost, less accumulated amortization and accumulated
impairment losses.
Intangible assets acquired separately are measured at cost at initial recognition. Intangible assets acquired in abusiness combination are recognized separately from goodwill at initial recognition and are measured at fair value
at the acquisition date. Any internally generated research and development expenditure is recognized as an
expense in the period in which it is incurred, except for expenditures on development activities eligible forcapitalization (internally generated intangible assets). The amount initially recognized for internally generated
intangible assets is the sum of the expenditure incurred from the date when the intangible asset first meets all of
the capitalization criteria to the date the development is completed.
There are intangible assets with finite useful lives and intangible assets with indefinite useful lives.
The intangible assets with finite useful lives are amortized over the estimated useful lives. Amortization of thecustomer relationships is calculated by the sum-of-the-digits method and intangible assets with finite useful lives
other than customer relationships are amortized by the straight-line method.
The estimated useful lives of major categories of intangible assets with finite useful lives are as follows:
Software
Software related to wireless equipment

5 - 10 years

Other

3 - 5 years

Customer relationships

4 - 24 years

Favorable lease contracts

3 - 23 years

Game titles

3 - 5 years

Trademarks (with finite useful lives)

34 years

Spectrum migration costs

18 yearsOther

4 - 20 years

Amortization methods, useful lives and residual values of assets are reviewed at the end of each fiscal year, andany changes are applied prospectively as a change in an accounting estimate.

45

SoftBank Corp. Consolidated Financial Report
For the fiscal year ended March 31, 2015

Favorable lease contracts are recognized as intangible assets based on the estimated fair value of the favorable
portion of future cash flows if, at the time of business combinations, the terms of operating lease contracts inwhich the acquiree is the lessee are favorable compared to market terms.
Spectrum migration costs are the amounts that the Company incurred in connection with the costs arising from themigration of the existing users from the 900 MHz band, which SoftBank Mobile Corp. acquired, to the otherfrequency spectrum based on the termination campaign. Useful lives are estimated based on the actual
utilization of the frequency spectrum in the past.
Intangible assets with indefinite useful lives are as follows:・Licenses using specific frequency spectrum granted by the U.S. Federal Communications Commission (“FCClicenses”)
・Trademarks (with indefinite useful lives)
As long as the Company acts within the requirements of the regulatory authorities, the renewal and extension of
FCC licenses are reasonably certain at minimal cost. Therefore, it is determined that FCC licenses haveindefinite useful lives.
The Company determined that “Sprint”, “Boost Mobile” and other trademarks have indefinite useful lives as they
can be legally used continuously as long as the business continues and management’s current plans are to offer
service under these trademarks for the foreseeable future.
The intangible assets with indefinite useful lives and the intangible assets that are not yet available for use are notamortized. The impairment of these assets is described in “(11) Impairment of tangible assets, intangible assets
and goodwill” in “Note 3. Significant accounting policies.”(10) Leases
The assessment of whether an arrangement is a lease or contains a lease is made on a basis of all the facts andcircumstances at the inception of the arrangement.
Leases are classified as finance leases whenever all the risks and rewards of ownership of assets are substantiallytransferred to the lessee. All other leases are classified as operating leases. It is determined that all the risks
and rewards of ownership of assets are transferred to the lessee when the lease terms account for most of theeconomic useful lives of the assets, or the present values of the total minimum lease payments are almost equal to
the fair values of the assets. The lease terms are the total of the non-cancelable period and the period which isdeemed to be reasonably certain that the renewal option will be exercised at the inception of the leases.
a. Finance leases(The Company as lessee)
At inception, the Company initially recognizes finance leases as assets and the lease obligation at the amountequal to the fair value of the leased property or, if lower, at the present value of the minimum lease payments.
Subsequent to initial recognition, the accounting policy for assets held under finance leases is consistent withthat of assets that are owned. Lease payments are apportioned between finance cost and reduction of the leaseobligation so as to achieve a constant rate of interest on the remaining balance of the liability.
b. Operating leases(The Company as lessee)
Gross operating lease payments are recognized as expenses on a straight-line basis over the relevant lease terms.
(The Company as lessor)
Gross operating lease incomes are recognized as revenues on a straight-line basis over the relevant lease terms.
(11) Impairment of property, plant and equipment, intangible assets and goodwill
a. Impairment of property, plant and equipment and intangible assets
At the end of the fiscal year, the Company determines whether there is any indication that property, plant andequipment and intangible assets may be impaired.

46

SoftBank Corp. Consolidated Financial Report
For the fiscal year ended March 31, 2015

If any such indication exists, the recoverable amount of the asset is estimated. When it is not possible toestimate the recoverable amount of an individual asset, the Company estimates the recoverable amount of the
cash-generating unit to which the asset belongs. A cash-generating unit is the smallest identifiable group ofassets that generates cash inflows that are largely independent of the cash inflows from other assets or groups ofassets.
The intangible assets with indefinite useful lives and the intangible assets that are not yet available for use aretested for impairment annually regardless of whether there is any indication of impairment.
The recoverable amount is the higher of fair value less costs to sell or value in use. In assessing value in use,
the estimated future cash flows are discounted to their present value using a pretax discount rate that reflects thetime value of money and the risks specific to the asset.
If the recoverable amount of an asset or cash-generating unit is estimated to be less than its carrying amount, thecarrying amount of the asset or cash-generating unit is reduced to its recoverable amount, and an impairment
loss is recognized in profit or loss.
At the end of the fiscal year, the Company evaluates whether there is any indication that an impairment loss
recognized in prior years for assets other than goodwill has decreased or extinguished. If such indication of areversal of an impairment loss exists, the recoverable amount of the asset or cash-generating unit is estimated.
If the recoverable amount of an asset or cash-generating unit is estimated to be higher than its carrying amount,a reversal of an impairment loss is recognized, to the extent that the increased carrying amount does not exceed
the lower of the recoverable amount or the carrying amount (less depreciation and amortization) that would
have been recognized, had no impairment loss been recognized.
b. Impairment of goodwill
At the end of the fiscal year and at the end of each quarter, the Company determines whether there is any
indication that goodwill may be impaired.
Goodwill is allocated to each of the cash-generating units or groups of cash-generating units that are expected
to benefit from the synergies arising from the business combination, and it is tested for impairment annuallyregardless of any indication of impairment, and when there is an indication that the cash-generating unit orgroups of cash-generating units may be impaired. If, at the time of the impairment test, the recoverable
amount of the cash-generating unit or groups of cash-generating units is less than its carrying amount, theimpairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the cash-generating
unit or groups of cash-generating units and then to the other assets pro rata based on the carrying amount ofeach asset in the unit or groups of cash-generating units.
Any impairment loss for goodwill is recognized directly in profit or loss and is not reversed in subsequent
periods.
(12) Retirement benefits
Defined contribution plans are post-employment benefit plans under which an employer pays fixed contributions
into a separate fund and will have no legal or constructive obligations to pay further contributions. Defined benefit
plans are post-employment benefit plans other than defined contribution plans.
The Company primarily adopts defined contribution pension plans.
SoftBank Mobile Corp. and SoftBank Telecom Corp. have frozen their defined benefit lump-sum plans since
March 2006 and 2007, respectively. Liabilities for the frozen defined benefit lump-sum plans are recognized as
defined benefit liabilities until they are paid in the form of a lump sum at the time of future retirement of
employees.
Sprint has frozen its defined benefit pension plans since December 2005. Liabilities for the defined benefit
pension plans are recognized as defined benefit liabilities until they are paid as pensions after the time ofretirement of employees.

47

SoftBank Corp. Consolidated Financial Report
For the fiscal year ended March 31, 2015

a. Defined contribution plans
Contributions paid for defined contribution plans are recognized as expenses in the period in which theemployees render the related service. Contributions payable are recognized as liabilities.
b. Defined benefit plans
The liability recognized in respect of the defined benefit plans (the defined benefit liability) is the present valueof the defined benefit obligation less the fair value of plan assets at the end of the fiscal year.
The defined benefit obligation is determined by independent actuaries using the projected unit credit method,and its present value is determined applying a discount rate based on the yield curve of high-quality corporate
bonds over the approximate period of the benefit payments.
Defined benefit cost includes service cost, net interest on the net defined benefit liability (asset), andre-measurements of the net defined benefit liability (asset). Service cost and net interest are recognized in net
profit or loss. Net interest is determined using the discount rate described above.
The liabilities for the frozen defined benefit plans are calculated on the basis of retirement benefits vested at thetime the plans were frozen. Therefore, service cost is not incurred for those defined benefit plans.
The Company’s remeasurements, which comprise actuarial gains and losses and the return on plan assets(excluding amounts included in net interest), are recognized in other comprehensive income and transferred toretained earnings immediately from accumulated other comprehensive income.
(13) Provisions
Provisions are recognized when the Company has a present legal or constructive obligation as a result of a past
event, it is probable that the Company will be required to settle the obligation, and a reliable estimate can be madeof the amount of the obligation.
Provisions are measured using the estimated future cash flows, discounted using a pretax rate reflecting the timevalue of money and the specific risks of the liability, after taking into account the risks and uncertainties
surrounding the obligation at the end of the fiscal year.
The Company recognizes asset retirement obligations, restructuring provision, provision for loss on interest
repayment, and provision for unprofitable contract as provisions.
Restructuring provisions are recognized when the Company has a detailed formal plan for the restructuring andhas raised a valid expectation to those who will be affected that the Company will carry out the restructuring bystarting to implement the plan or announcing the main features of the plan.
Provision for loss on interest repayment is recorded based on an amount representing future expected claims inorder to prepare for future claims by debtors and others, for repayment of interest paid in excess of the rate
permitted under the Interest Limitation Law.
(14) Treasury stock
When the Company acquires its own equity share capital (“treasury stock”), the consideration paid, including any
directly attributable increments costs (net of income taxes), is deducted from equity. No gain or loss isrecognized on the purchase, sale, or cancellation of the treasury stock. The difference between the carrying
amount and the consideration on sale is recognized as capital surplus.
(15) Share-based payments
The Company grants stock options and restricted stock unit awards as equity-settled share-based compensationand cash-settled share-based compensation.
Equity-settled share-based compensation is measured at fair value at the grant date. The fair value of stock
options is calculated using the Black-Scholes model and other, and the fair value of restricted stock units is
calculated using the share price at the date of grant.

48

SoftBank Corp. Consolidated Financial Report
For the fiscal year ended March 31, 2015

The fair value determined at the grant date is expensed over the vesting period, based on the estimate of stock
options or restricted stock units that will eventually vest, with a corresponding increase in equity.
The Company regularly reviews the assumptions made and revises estimates of the number of stock options or
restricted stock units that are expected to vest, when necessary.
Cash-settled share-based compensation is accounted for as liabilities and is measured initially at the fair value ofthe award. The fair value of the liabilities is remeasured on each closing date and the settlement date, andchanges in fair values are recognized in profit or loss.
(16) Revenue
The Company’s accounting policy for revenue recognition by major categories is as follows:a. Mobile Communications service and sales of mobile handsets
The Company provides mobile telecommunications services, which consist of voice communications and datatransmission to subscribers, and also sells mobile handsets and accessories to customers.
In the Mobile Communications service, revenues are mainly generated from basic monthly charges, telecom
service (“revenues from the mobile telecommunications service”) and other fees. Also, revenues from the saleof mobile handsets (“revenues from the sale of mobile handsets”) are generated from the sale of mobile
handsets and accessories to subscribers or dealers.
The business flow of the above transactions consists of “Indirect sales” where the Company sells mobile
handsets to dealers and enters into telecommunications services contracts with subscribers through dealers, and“Direct sales” where the Company sells mobile handsets to subscribers and enters into telecommunications
services contracts directly with subscribers. The revenues are recognized respectively as follows.
(a) Indirect sales
Revenues from the sale of mobile handsets are recognized when mobile handsets are delivered to dealers,
which is when risk and economic value are deemed to be transferred. Commission fees paid to dealers
related to the sales of mobile handsets are deducted from revenues.
The mobile telecommunications services are recognized as revenue when services are provided tosubscribers. Discounts are deducted from revenues from monthly mobile telecommunications services as a
discount of mobile telecommunications charges.
Activation fees are deferred upon entering into the contract and recognized as revenues over the estimatedaverage contract period. Upgrade fees are recognized as revenues over the estimated average usage periodof handsets with the subscribers. Direct costs related to activation are deferred to the extent of theactivation fees and upgrade fees and are amortized over the respective same period.
(b) Direct sales
In direct transactions, as the revenue from the sales of mobile handsets and the mobile telecommunications
services, including the fees, are considered to be one transaction, the total amount of revenues is allocated tomobile handsets and telecommunications service on the basis of fair value ratio.
When handsets are sold in installments, revenue from the sales of mobile handsets is recognized based on thefair value ratio when handsets are delivered to the subscribers. When handsets are sold in lump-sum
payment, the maximum amount of revenues to be recognized by the sale of mobile handsets is set by theamounts to be received from subscribers at the sales of mobile handsets. The amount of revenue allocatedto the mobile telecommunication services is recognized when the service is provided to the subscribers.
The previous point program operated by the Company has been transferred to the point program operated bya third party since July 2014. In the previous point program, points were granted to subscribers based on
the billing amount from mobile telecommunications services revenue from both direct and indirect sales.
The fair values of benefits to be exchanged based on the estimated point utilization rate were deferred andrecognized as revenues when subscribers utilized the points.

49

SoftBank Corp. Consolidated Financial Report
For the fiscal year ended March 31, 2015

In the point program operated by the third party, points are granted to subscribers based on the received
amounts received from mobile telecommunications services revenue from both direct and indirect sales.
The fair values of the points are deferred when the services are provided to subscribers and recognized asrevenues when the points are granted to the subscribers.
b. Sales of game items
In games that the Company provides for mobile devices, the Company sells items that are usable in games.
The revenue from the sales of those items is deferred at the time of sales, and recognized as revenue when they
are actually used by the customers or over the estimated usage period, based on the characteristics of the items.
c. Fixed-line Telecommunications service
In the Fixed-line Telecommunications service, revenues are generated mainly from voice communications anddigital data transmission services, internet provider charges, ADSL service fees, IP telephony service fees, andthe usage of the network (“revenues from fixed-line telecommunications service”).
Revenues from fixed-line telecommunications services are recognized as revenues when services are provided
to subscribers, based upon fixed monthly charges plus the usage of the network.
d. Internet service
In the Internet service, revenues are generated mainly from sponsored search advertising, display advertising,
e-commerce related commission fees, and revenue from membership.
Sponsored search advertising revenue is recognized when a visitor of the website clicks the advertisement.
Display advertising comprises premium advertising, Yahoo! Display Ad Network (“YDN”) and others.
Revenue from premium advertising is recognized over a period in which related advertisement is displayed.
Revenue from YDN is recognized when a visitor of the website clicks the advertisement on the page with therelated content. Revenue from e-commerce-related commission fees is recognized when the transaction occurs.
Revenue from membership fees is recognized over an effective period of the membership.
(17) Sales commission fees
The Company pays sales commission fees when dealers sell the Company’s mobile handsets to subscribers or
acquire and retain engagement of telecommunications service between the Company and subscribers.
Commission fees related to the sales of mobile handsets are deducted from the revenues from the sales of mobile
handsets. Commission fees related to the acquisition and retention of engagement of telecommunications
service are recognized as selling, general and administrative expenses.
(18) Income tax
Income tax expense is composed of current and deferred taxes, and recognized in profit or loss, except for taxes
related to business combinations and taxes related to items that are recognized in other comprehensive income or
directly in equity.
Current tax is measured at the amount expected to be paid to or recovered from the taxation authorities, using the
tax rates and tax laws that have been enacted or substantively enacted by the end of the fiscal year.
Deferred tax assets are recognized to the extent that it is probable that taxable profits will be available against
which deductible temporary differences, net operating loss carryforwards and tax credit carryforwards can beutilized. The recoverability of deferred tax assets is reassessed at the end of the fiscal year.
Deferred tax assets are not recognized for temporary differences from initial recognition of assets and liabilities
that do not arise from business combinations and that do not impact accounting profit or taxable income.
Deferred tax assets are recognized for deductible temporary differences associated with investments in
subsidiaries and associates when it is probable that the temporary difference will reverse in the foreseeable future
and when there will be sufficient taxable profits against which the temporary differences can be utilized.

50

SoftBank Corp. Consolidated Financial Report
For the fiscal year ended March 31, 2015

Deferred tax liabilities are basically recognized for taxable temporary differences, except for:・temporary differences arising from the initial recognition of assets and liabilities, and related transactions otherthan business combinations, that affect neither the accounting profit nor the taxable profit;・taxable temporary differences arising from the initial recognition of goodwill; and・taxable temporary differences associated with investments in subsidiaries and associates, where the Company isable to control the reversal of the temporary difference and it is probable that the temporary difference will notreverse in the foreseeable future.
Deferred tax assets and liabilities are measured at the tax rates that are expected to apply to the period when theasset is realized or the liability is settled, based on tax laws that have been enacted or substantively enacted by theend of the fiscal year.
Deferred tax assets and liabilities are offset if the Company has a legally enforceable right to set off current tax
assets against current tax liabilities, and income taxes are levied by the same taxation authority on the same
taxable entity.
(19) Earnings per share
Basic earnings per share are calculated by dividing net income attributable to owners of the parent by theweighted-average number of ordinary shares (after adjusting for treasury stocks) outstanding for the period.
Diluted earnings per share assume full conversion of the issued potential stocks having a dilutive effect, with an
adjustment for net income attributable to owners of the parent and the weighted-average number of ordinary
shares (after adjusting for treasury stocks) outstanding for the period.

51

SoftBank Corp. Consolidated Financial Report
For the fiscal year ended March 31, 2015

4. Changes in accounting policies
The following standards are applied by the Company for the fiscal year ended March 31, 2015.
Standard
IAS 32(Amendments)
IFRIC 21

Financial Instruments:
Presentation
LeviesOutline of the new / revised standards
To clarify the requirements of net presentation of financial assets
and liabilities
To clarify the timing of recognition of liabilities related to thepayment of levies

IFRIC 21 is applied retrospectively in accordance with its transition method. Consolidated financial statements forthe fiscal ended March 31, 2014 and for the fiscal year ended March 31, 2015 are presented after the retrospective
application.
Effects of the above adoption on the consolidated financial statements are as follows.

(Consolidated Statements of Financial Position)(Millions of yen)

As ofMarch 31, 2014
(11,686)
7,302
9,514
5,130

As of
March 31, 2015
(7,308)
8,343
8,681
9,716

Increase in other current liabilities
Increase in total liabilities

33,41833,41838,00938,009Decrease in capital surplus
Decrease in retained earnings
Increase (decrease) in accumulated other comprehensive
incomeDecrease in non-controlling interests
Decrease in total equity(66)(25,100)(66)(23,433)

233(3,355)(28,288)(403)(4,391)(28,293)

Fiscal year ended
March 31, 2014
(8,326)

Fiscal year ended
March 31, 2015
1,997

8
420
(7,898)

(8)
(833)
1,156

(5.69)(5.69)

1.40
1.40

Decrease in other current assets
Increase in goodwill
Increase in deferred tax assets
Increase in total assets(Consolidated Statements of Income)(Millions of yen)

Increase (decrease) in cost of sales
Increase(decrease) in selling, general and administrative
expenses
Increase (decrease) in income taxes
Increase (decrease) in net income
Earnings per share attributable to owners of the parent
Increase (decrease) in earnings per share-basic (yen)Increase (decrease) in earnings per share-diluted (yen)52SoftBank Corp. Consolidated Financial Report
For the fiscal year ended March 31, 2015

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

Increase (decrease) in net income
Increase (decrease) in exchange differences ontranslating foreign operations
Increase (decrease) in total comprehensive income

Fiscal year ended
March 31, 2014
(7,898)

Fiscal year ended
March 31, 2015
1,156

295

(885)

(7,603)271(Consolidated Statements of Cash Flows)(Millions of yen)

Cash flows from operating activities(Decrease) increase in net income(Decrease) increase in income taxes
Increase (decrease) in otherNet cash provided by (used in) operating activities

Fiscal year ended
March 31, 2014

Fiscal year ended
March 31, 2015

(7,898)
(420)
8,318
-

1,156
833
(1,989)-There are no significant effects on the Company due to the adoption of other new standards and interpretations.

5. Significant judgments and estimates
In preparing consolidated financial statements under IFRSs, management makes judgments, estimates, andassumptions that affect the application of accounting policies and carrying amounts of assets, liabilities, revenue, andexpenses. These estimates and underlying assumptions are based on the management’s best judgments, through theirevaluation of various factors that were considered reasonable as of the period-end, based on historical experience andby collecting available information. By the nature of its estimates or assumptions, however, actual results in the
future may differ from those estimates or assumptions.
Estimates and underlying assumptions are continuously reviewed. Revisions to accounting estimates are recognizedin the period in which the estimate is revised as well as in the future periods.
Significant judgments, estimates and assumptions that affect the amounts recognized in the Company’s consolidated
financial statements are as follows:・judgments of whether an entity is controlled by the Company in the decision making on the scope of consolidation ((1)
in “Note 3. Significant accounting policies”);
・estimates for impairment of investments accounted for using the equity method ((1) in “Note 3. Significant accounting
policies” and “Note 16. Other non-operating income and loss”);
・estimates of fair value of assets acquired and the liabilities assumed in a business combination ((2) in “Note 3.
Significant accounting policies” and “Note 6. Business combinations”);
・fair value measurement of financial assets at FVTPL and available-for-sale financial assets ((4) in “Note 3. Significant
accounting policies”);
・estimates of forecasted transactions related to hedge accounting ((4) in “Note 3. Significant accounting policies”);
・estimates for amortization period and impairment of financial assets measured at amortized cost ((4) in “Note 3.
Significant accounting policies” and “Note 16. Other non-operating income and loss”);

53SoftBank Corp. Consolidated Financial Report
For the fiscal year ended March 31, 2015

・fair value measurement of derivatives (including embedded derivatives) ((4) in “Note 3. Significant accounting
policies” and “Note 16. Other non-operating income and loss”);
・estimates of residual value and useful life of property, plant and equipment and intangible assets ((7) and (9) in “Note 3.
Significant accounting policies”);
・judgments and estimates for accounting treatment of contracts including leases ((10) in “Note 3. Significant accounting
policies”);
・estimates for impairment of property, plant and equipment, intangible assets and goodwill ((11) in “Note 3. Significant
accounting policies” and “Note 13. Other operating income and loss”);
・measurement of defined benefit obligation ((12) in “Note 3. Significant accounting policies”);
・judgments and estimates for recognition and measurement on provisions ((13) in “Note 3. Significant accounting
policies”); and・assessment of recoverability of deferred tax assets ((18) in “Note 3. Significant accounting policies”).
When estimating the value of returned inventory, Sprint evaluates many factors and obtains information to support theestimated value of used devices and the useful lives.
Recently, Sprint has observed sustained value and extended useful lives for handsets leading to an increase in theestimated value for returned inventory. As a result, Sprint revised its methodology and assumptions used inestimating the value for returned handsets. The change in estimate was accounted for on a prospective basis
effective October 1, 2014.
The effect of the change in estimate, which was included in “Cost of sales” in the Company’s consolidated statements
of income, reduced the Company’s operating loss by approximately ¥9,048 million (approximately $80 million) for
the fiscal year ended March 31, 2015. In addition, this change resulted in an increase in “Inventories” on the
consolidated statements of financial position of approximately ¥9,614 million (approximately $80 million) as ofMarch 31, 2015.

54

SoftBank Corp. Consolidated Financial Report
For the fiscal year ended March 31, 2015

6. Business combinations(1) GungHo Online Entertainment, Inc.
a. Overview of consolidation
Masayoshi Son, chairman and CEO of the SoftBank Corp., has entered into a Memorandum of Understanding
on Exercise of Voting Rights for Deferment of Execution of Pledges (the “MOU”) with respect to the shares of
GungHo on April 1, 2013, with Heartis G.K. (“Heartis”; percentage of voting interest: 18.50%), which is thesecond largest shareholder of GungHo and Taizo Son’s asset management company and of which Taizo Son,chairman of GungHo, is the representative director. Under the MOU, in order to have Son Holdings Inc., ofwhich Masayoshi Son is a director and which is a Masayoshi Son’s asset management company, defer the
execution of pledges over the shares of GungHo held by Heartis, Heartis has agreed, effective as of April 1,
2013, to the effect that at the shareholders meeting of GungHo, Heartis will exercise the voting rights for all of
the shares of GungHo it holds in accordance with Masayoshi Son’s directions. Also, a subsidiary of theCompany, SoftBank Mobile Corp., undertook the Tender Offer from April 1, 2013 to April 26, 2013 andacquired 6.37% of GungHo shares (purchase price: ¥24,976 million). The Company and Heartis together
came to represent the majority of the voting rights in GungHo’s shares (percentage of voting interest: 58.50%)
and GungHo Online Entertainment changed from an equity method associate to a subsidiary of the Company.
With this transaction, the Company expects that it will be able to enhance mobile content, and to improve theefficiency in operation of the mobile communications business and profitability competitiveness by combining
smartphone-focused development capability and infrastructure held by the Company, and planning and creating
capabilities in the smartphone game industry held by GungHo.
(Business description of GungHo)(a) Planning, development, operation and distribution of online games(b) Planning, development and sales of mobile content(c) Planning, development and sales of character goods(d) Planning, development and distribution of other entertainment content(Acquisition date)
April 1, 2013b. Consideration transferred and the components(Millions of yen)

Payment by cash
Fair value of equity interest in GungHo already held at
the time of the acquisition
Total consideration transferred

Acquisition date
(April 1, 2013)
24,976
153,620A

178,596

Acquisition-related costs of ¥109 million arising from the business combinations are recognized in “Selling,
general and administrative expenses.”
As a result of the reevaluation of 33.63% in equity interest already held at the time of the acquisition of control
by the Company in GungHo at fair value on the acquisition date, the Company recognized a gain on the step
acquisition of ¥150,120 million. This gain is presented as “Gain from remeasurement relating to businesscombination” in the consolidated statements of income.

55

SoftBank Corp. Consolidated Financial Report
For the fiscal year ended March 31, 2015

c. Fair values of assets and liabilities, non-controlling interests and goodwill on the acquisition date(Millions of yen)

Acquisition date
(April 1, 2013)
36,90380,814
4,511

Current assets
Intangible assets1
Other non-current assets
Total assets

122,228

Current liabilities
Non-current liabilities

10,89729,949Total liabilities

40,846
81,382

Net assets

B

Non-controlling interests2

C

48,818A-(B-C)

146,032

3

Goodwill
Notes:

1. Intangible assets
Game titles of ¥77,796 million are included.
2. Non-controlling interests
Non-controlling interests in an acquiree that are present ownership interests and entitle their holders to a proportionate
share of the entity’s net assets in the event of liquidation are measured based on the proportionate interests at theacquisition date in the identifiable net assets of the acquiree at the acquisition date.
3. Goodwill
Goodwill reflects excess earning power expected from the future business development and assembled workforce forgame development and other, and the synergy with existing businesses.

d. Payment for acquisition of control over subsidiaries(Millions of yen)

Payment for the acquisition by cash
Cash and cash equivalents held by the acquiree at the time ofacquisition of control
Payment for the acquisition of control over the subsidiary bycash

Acquisition date
(April 1, 2013)(24,976)
11,025(13,951)e. Sales and net income of the acquiree
The amount of the acquiree’s sales and net income before elimination of inter-company transactions and after
the acquisition date are ¥181,056 million and ¥42,857 million, respectively, which are recorded in the
consolidated statements of income for the fiscal year ended March 31, 2014.
In addition, the above net income includes amortization expenses, which are related to intangible assets
recognized at the acquisition date, and other.

56

SoftBank Corp. Consolidated Financial Report
For the fiscal year ended March 31, 2015(2) Sprint
a. Overview of consolidation
On October 15, 2012, the Company and Sprint entered into a series of definitive agreements under which theCompany will invest in Sprint. After the completion of negotiations, the Company and Sprint agreed to amend a
portion of the transaction on June 11, 2013.
On July 10, 2013, SoftBank Corp. capitalized, through a wholly owned subsidiary, Starburst I, Inc., Sprint withan additional $18.5 billion and the total investment of SoftBank Corp. amounted to $21.6 billion, including $3.1
billion of corporate bonds with stock acquisition rights issued by Sprint Nextel Corporation (the “Bond”)
invested by Starburst II, Inc. on October 22, 2012. Of the invested amounts of $21.6 billion, $16.6 billion was
distributed to Sprint’s existing individual shareholders and $5 billion was used to strengthen Sprint. The Bond
held by Starburst II, Inc. was converted into shares.
Through the transaction, approximately 72% of Sprint Nextel Corporation shares were acquired for $7.65 pershare in cash, and the remaining shares were converted into Sprint shares on a one-to-one basis, which
succeeded Sprint Nextel Corporation and became listed on the New York Stock Exchange.
As a result of the transaction, Starburst I, Inc. owns approximately 78% of the shares of Sprint and Sprint
became a subsidiary of SoftBank Corp.
Prior to the transaction, Clearwire, a company providing high-speed wireless communication services in the
U.S., became a wholly owned subsidiary of Sprint on July 9, 2013.
From August 1, 2013 to September 16, 2013, SoftBank Corp., through Galaxy Investment Holdings, Inc., awholly-owned subsidiary in the U.S., additionally purchased approximately 2% of the shares of Sprint(purchase price: $500 million). As a result, the Company’s ownership in the outstanding Sprint common
stock became approximately 80% as of March 31, 2014.
Structure after completion of the transaction

57

SoftBank Corp. Consolidated Financial Report
For the fiscal year ended March 31, 2015b. Purpose of consolidation(a) Enables the Company to establish an operating base as one of the largest mobile Internet companies in theworld.

The combined subscriber base will be one of the largest between the U.S. and Japan*.

(b) Enables the Company to leverage its deep expertise in smartphones and next-generation mobile networks,
and its track record of success in competing in mature markets with large incumbents, to enhancecompetitiveness of Sprint in the U.S.
(c) Provides Sprint $5 billion of new capital for its mobile network, strategic investments, and balance sheet aspart of its continued efforts to fortify its operating base towards future growth.
Note:
Based on Telecommunications Carriers Association (“TCA”) data and disclosed material by relevant companies as ofthe end of June 2013.

c. Summary of Sprint

Name

Sprint Corporation

Address

6200 Sprint Parkway, Overland Park, Kansas

Name and title of representative

Business description

Marcelo Claure, Chief Executive Officer and Director(Assumed the post on August 11, 2014)
Holding company
Provision of telecommunications services through its operating subsidiaries

Note

The Chairman of the Board and the Vice Chairman of the Board wereassumed by Masayoshi Son, the Chairman & CEO of SoftBank Corp. andRonald Fisher, Director of SoftBank Corp., respectively. Adm. Mike Mullen,
former Chairman of the Joint Chiefs of Staff, has been appointed as the
Director in charge of security.

Consolidated sales$35,493 million (For the fiscal year ended December 31, 2013, US GAAP)

d. Acquisition dateJuly 10, 2013

e. Consideration transferred and the component(Millions of yen)

Payment by cash
Conversion of corporate bonds with stock acquisition rights
held at the time of acquisition
Total consideration transferredA

Acquisition date(July 10, 2013)
1,875,149
313,534
2,188,683

Acquisition-related costs of ¥12,106 million arising from the business combination are recognized in “Selling,
general and administrative expenses,” with ¥3,751 million for the year ended March 31, 2013, and ¥8,355
million for the fiscal year ended March 31, 2014.

58

SoftBank Corp. Consolidated Financial Report
For the fiscal year ended March 31, 2015

f. Fair values of assets and liabilities, non-controlling interests and goodwill on the acquisition date1(Millions of yen)

Acquisition date(July 10, 2013)
Current assets
Cash and cash equivalents
Trade and other receivables2
Other financial assets
Inventories
Other current assets
Total current assets

447,873332,553
111,764
105,318
43,236
1,040,744

Non-current assets
Property, plant and equipment3
Intangible assets3
Other financial assets
Other non-current assets
Total non-current assets
Total assets

1,291,364
5,305,965
23,93814,1396,635,406
7,676,150

Current liabilities
Interest-bearing debt3
Trade and other payables
Income taxes payables
Provisions4
Other current liabilities
Total current liabilities

86,961
634,371
4,553
101,404
291,398
1,118,687

Non-current liabilities
Interest-bearing debt3
Other financial liabilities
Defined benefit liabilities
Provisions4Deferred tax liabilities5
Other non-current liabilities
Total non-current liabilities
Total liabilities

2,668,163
5,662
65,763
146,492
1,422,965
184,1074,493,152
5,611,839

Net assets

B

2,064,311

Non-controlling interests6

C

466,735

Basis adjustment7
Goodwill8

D311,659
279,448

A-(B-C)-DThe above amount is translated at the exchange rate (USD = JPY101.14) as of the acquisition date.
Notes:
1. Adjustment of the provisional amount
Consideration transferred is allocated to acquired assets and assumed liabilities based on the fair value on the acquisition
date.

Allocation of the consideration transferred was completed during the three-month period ended June 30, 2014.

details of the adjustments from the initial provisional amounts are as follows.

The

Due to the additional analysis performed by

Sprint management on the fair value of FCC licenses, intangible assets increased by ¥30,342 million and non-controllinginterests increased by ¥29,029 million.

As a result, goodwill decreased by ¥14,970 million.

59

SoftBank Corp. Consolidated Financial Report
For the fiscal year ended March 31, 2015

2. Estimation of fair values of acquired receivables, contractual amounts receivables and amounts not expected to be collected
As for the fair value of ¥332,553 million of acquired receivables and other receivables (mainly sales receivables), the total
amount of contracts is ¥353,388 million and the estimate of the contractual cash flows not expected to be collected at theacquisition date is ¥20,835 million.
3. Property, plant and equipment, intangible assets and interest-bearing debt
The components of the carrying amounts are as follows:(Property, plant and equipment)(Millions of yen)
Acquisition date(July 10, 2013)
Buildings and structures

140,270

Telecommunications equipment

794,524Land

18,362

Construction in progress

298,928

Other

39,280Total

1,291,364(Intangible assets)(Millions of yen)
Acquisition date(July 10, 2013)
Intangible assets with finite useful lives
Software138,330

Customer relationships

700,192

Favorable lease contracts

148,979

Trademarks

52,593

Other

47,928Intangible assets with indefinite useful lives
FCC licenses

3,617,677

Trademarks

600,266

Total

5,305,965(Interest-bearing debt)(Millions of yen)
Acquisition date(July 10, 2013)
Current
Current portion of long-term borrowings

13,380Current portion of corporate bonds

63,317

Current portion of lease obligations

10,264

Total

86,961

Non-current
Long-term borrowings

34,854

Corporate bonds

2,590,208

Lease obligations

43,101

Total

2,668,163

60

SoftBank Corp. Consolidated Financial Report
For the fiscal year ended March 31, 2015

4. Provisions
Provisions recognized by the business combination are mainly asset retirement obligations, lease exit costs related to the
shutdown of the Nextel Platform, and exit costs related to payments that will continue to be made under Sprint’s backhaul
access contracts for which it will no longer be receiving any economic benefit.

Backhaul is an intermediary network whichconnects the cell towers to the local switching center.
5. Deferred tax liabilities
Deferred tax liabilities recognized by this business combination are mainly temporary differences related to FCC licenses,
and trademarks with indefinite useful lives.
6. Non-controlling interests
Non-controlling interests in an acquiree that are present ownership interests and entitle their holders to a proportionate shareof the entity’s net assets in the event of liquidation are measured based on the proportionate interests at the acquisition datein the identifiable net assets of the acquiree at the acquisition date.
7. Basis adjustment
The Company entered into a foreign currency forward contract to hedge exchange risks resulting from the investment in
Sprint.

This scheduled transaction was designated as a cash flow hedge.

¥311,659 million, the fair value of the hedging

instruments at the acquisition date, was deducted from initial amount of goodwill which was recognized from theacquisition.
8. Goodwill
Goodwill reflects excess earning power expected from the future business development and the synergy with existing
businesses.

g. Payment for acquisition of control over subsidiaries(Millions of yen)

Acquisition date(July 10, 2013)
Payment for the acquisition by cash
Cash and cash equivalents held by the acquiree at the time ofacquisition of control(1,875,149)

Payment for the acquisition of control over the subsidiary by cash
Proceeds from settlement of foreign currency forward contract for
acquisition of control of subsidiaries
Payment for the acquisition of control over the subsidiary by cash,
net(1,427,276)

447,873

310,104(1,117,172)h. Sales and net loss of the acquiree
The amounts of the acquiree’s sales and net loss before elimination of inter-company transactions after theacquisition date, which are recorded in the consolidated statements of income for the fiscal year ended March 31,
2014, are ¥2,601,031 million and ¥193,299 million, respectively.
In addition, the above net loss includes amortization expenses, which are related to intangible assets recognized at
the acquisition date, and other.
(3) WILLCOM, Inc.
a. Overview of consolidation
SoftBank Corp. owns 100% of shares issued by WILLCOM, Inc. However, WILLCOM, Inc. was in the processof rehabilitation under the Corporate Reorganization Act and SoftBank Corp. did not have effective control over
WILLCOM, Inc. Therefore, WILLCOM, Inc. was not treated as a subsidiary.

61

SoftBank Corp. Consolidated Financial Report
For the fiscal year ended March 31, 2015

WILLCOM, Inc. made prepayments of rehabilitation claims and rehabilitation security interests in June 2013,
and filed a petition with the Tokyo District Court for the termination of its rehabilitation proceedings.
WILLCOM, Inc. received an order of termination of rehabilitation proceedings from the Tokyo District Court on
July 1, 2013. Consequently, WILLCOM, Inc. became a subsidiary of SoftBank Corp.
WILLCOM, Inc. conducted an absorption type merger with eAccess Ltd., eAccess Ltd. being the surviving
company and WILLCOM, Inc. being the dissolving company, on June 1, 2014 and changed its company name to
Ymobile Corporation on July 1, 2014.
(Business description of WILLCOM, Inc.)
Telecommunications business(Acquisition date）
July 1, 2013b. Consideration transferred and the components(Millions of yen)

Acquisition date(July 1, 2013)
Fair value of equity interest in WILLCOM, Inc. alreadyheld at the time of the acquisition

104,070
A

Total consideration transferred

104,070

As a result of the reevaluation of 100% equity interest already held by the Company at the time of the acquisitionof control in WILLCOM, Inc. at fair value, the Company recognized a gain of ¥103,766 million. This gain ispresented as “Gain from remeasurement relating to business combination” in the consolidated statements ofincome.

c. Fair value of assets and liabilities, non-controlling interests and goodwill on the acquisition date(Millions of yen)

Acquisition date(July 1, 2013)
79,75446,026
43,63914,883Current assets
Property, plant and equipment
Intangible assets1
Other non-current assets
Total assets

184,302

Current liabilities
Non-current liabilities

83,95816,284

Total liabilities

100,242

Net assets

B

84,060Non-controlling interests2

C

222

A-(B-C)

20,232

3

Goodwill

62

SoftBank Corp. Consolidated Financial Report
For the fiscal year ended March 31, 2015

Notes:
1. Intangible assets
Customer relationships of ¥25,004 million are included.
2. Non-controlling interests
Non-controlling interests are from WILLCOM OKINAWA, Inc. (proportionate interest held by the Company is 80%), a
subsidiary of WILLCOM, Inc., and they are measured based on the proportionate interests after the acquisition in theidentifiable net assets of the acquiree at the acquisition date.
3. Goodwill
Goodwill reflects excess earning power expected from the future business development, assembled workforce and thesynergy with existing business.

d. Estimation of fair values of acquired receivables, contractual amounts receivables and amounts not expected to becollected
The main components of acquired trade and other receivables are installment receivables and the fair value is¥31,039 million. The total amount of contractual receivables is ¥31,328 million and the best estimate of thecontractual cash flows not expected to be collected as of the acquisition date is ¥289 million.
e. Proceeds from acquisition of control over subsidiaries(Millions of yen)

Acquisition date(July 1, 2013)
Cash and cash equivalents held by the acquiree at the time ofacquisition of control
Proceeds in cash from the acquisition of control over thesubsidiary

14,043
14,043f. Sales and net loss of the acquiree
The amounts of the acquiree’s sales and net loss before elimination of inter-company transactions after theacquisition date, which are recorded in the consolidated statements of income for the fiscal year ended March 31,
2014, are ¥124,068 million and ¥4,316 million, respectively.
In addition, the above net loss includes amortization expenses, which are related to intangible assets recognized at
the acquisition date, and other.

(4) Supercell
a. Overview of consolidation
SoftBank Corp. and GungHo, a subsidiary of SoftBank Corp., communally established Kahon 3, a special
purpose company in Finland, SoftBank Corp. indirectly investing $1,224 million (investing ratio of
approximately 80%) and GungHo indirectly investing approximately $306 million (investing ratio of
approximately 20%). Through Kahon 3, the special purpose company, SoftBank Corp. and GungHo acquired
approximately 51% (diluted) of voting stock of Supercell, with a total of $1.53 billion (¥150,720 million) on
October 31, 2013. Accordingly, Supercell, a mobile game company headquartered in Finland, became asubsidiary of SoftBank Corp.
SoftBank Corp. acquired all interests of Kahon 3 held indirectly by GungHo on August 26, 2014.

63

SoftBank Corp. Consolidated Financial Report
For the fiscal year ended March 31, 2015

Structure as of October 31, 2013b. Purpose of consolidation
Supercell is a mobile game company headquartered in Finland. This new strategic partnership with SoftBank
Corp. and GungHo will help accelerate Supercell’s goal of becoming “the first truly global games company.”
GungHo started its online game business in 2002, and it has since accumulated significant expertise andproduced notable results in the development and operation of online games. Through the transaction,
GungHo will leverage Supercell’s position among the apps in the Games category of the App Store andmarketing power abroad to enhance its global expansion.
c. Summary of Supercell
Name

Supercell Oy

Address

Itämerenkatu 11-13 00180 Helsinki Finland

Name and title of representative

Ilkka Paananen, Chief Executive Officer

Business description

Mobile/Social interactive entertainment

Common stock€2,500Date of foundation

May 14, 2010

Consolidated sales€519,093 thousands (For the fiscal year ended December 31, 2013, Finnish GAAP)

d. Acquisition date
October 31, 2013
e. Consideration transferred and the component(Millions of yen)

Acquisition date
(October 31, 2013)
140,397

Payment by cashA

Total consideration transferred64

140,397

SoftBank Corp. Consolidated Financial Report
For the fiscal year ended March 31, 2015

Acquisition-related costs of ¥3,114 million arising from the business combination are recognized in “Selling,
general and administrative expenses.”

Kahon 3 acquired common and preferred stocks of Supercell and options, which can convert the preferredstocks to common stocks (“conversion options”), with a total of ¥150,720 million. The considerationtransferred for the business combination is ¥140,397 million, deducting the fair value of ¥10,323 million forthe preferred stocks and the conversion options from the total amount of ¥150,720 million to acquire Supercell.

The fair value of ¥10,323 million for the preferred stocks and the conversion option is deducted from capitalsurplus as “Acquisition of options to convert to subsidiaries’ common stocks” in the consolidated statements ofchanges in equity.

f. Fair value of assets and liabilities, non-controlling interests and goodwill on the acquisition date(Millions of yen)

Acquisition date
(October 31, 2013)22,123
119,204
73

Current assets
Intangible assets1
Other non-current assets
Total assets

141,400

Current liabilities
Non-current liabilities

22,51823,993

Total liabilities

46,511

Net assets

B

94,889Non-controlling interests2

C

53,295A-(B-C)98,803

3

Goodwill

Notes:
1. Intangible assets
Game titles of ¥119,099 million are included.
2. Non-controlling interests
Non-controlling interests in an acquiree that are present ownership interests and entitle their holders to a proportionate
share of the entity’s net assets in the event of liquidation are measured based on the proportionate interests at
acquisition date in the identifiable net assets of the acquiree at acquisition date.
3. Goodwill
Goodwill reflects excess earning power expected from the future business development and assembled workforce forgame development and others, and the synergy with existing businesses.

65SoftBank Corp. Consolidated Financial Report
For the fiscal year ended March 31, 2015

g. Payment for the acquisition of control over subsidiaries(Millions of yen)

Acquisition date
(October 31,2013)
Payment for the acquisition by cash
Cash and cash equivalents held by the acquiree at the time ofacquisition of control(140,397)

Payment for the acquisition of control over the subsidiary by cash

(137,902)

2,495

h. Sales and net income of the acquiree
The amounts of the acquiree’s sales and net income before elimination of inter-company transactions after theacquisition date, which are recorded in the consolidated statements of income for the fiscal year ended March 31,
2014, are ¥54,841 million and ¥3,799 million, respectively.
In addition, the above net loss includes amortization expenses, which are related to intangible assets recognized at
the acquisition date, and others.
(5) Brightstar Corp.
a. Overview of consolidation
The Company completed the acquisition of all common and preferred stocks of Brightstar Corp., a mobile device
distributor in the United States, and the establishment of the organizational structure related to the transaction on
January 30, 2014. Accordingly, Brightstar Corp. became a subsidiary of the Company. At the completion of
the transaction, the Company owns approximately 57% of the voting rights of Brightstar Global Group Inc.,
which owns 100% of Brightstar Corp.
In the transaction, SoftBank Corp. invested a total of $1.26 billion (¥128.4 billion) into Brightstar Global Group
Inc., of which SoftBank Corp. owns all the interests. SoftBank Corp. received newly-issued common stocks of
Brightstar Global Group Inc., newly-issued non-voting preferred stocks of Brightstar Global Group Inc. thathave an aggregate liquidation preference of $860 million, and a warrant (the “Warrant”) that provides SoftBank
Corp. with the rights to acquire a number of common stocks of Brightstar Global Group Inc. for de minumis
value. Brightstar Global Group Inc. acquired all common and preferred stocks (including payment of accrued
dividends) of Brightstar Corp. from existing shareholders for consideration of $1.11 billion and newly issued
common stocks of Brightstar Global Group Inc. representing approximate 43% of the common stocks issued.
As a result of the transaction, SoftBank Corp. owns approximately 57% of the voting rights and common stocksof the Brightstar Global Group Inc., which owns 100% of Brightstar Corp., and Marcelo Claure, the former
Chairman and CEO of Brightstar Corp. (resigned on August 11, 2014), owns approximately 43%. Accordingly,
Brightstar Corp. became a subsidiary of SoftBank Corp. (please refer to (a) stracture below). The Company
accounts for Brightstar Global Group Inc. as a acquiree.
The Company used $1.11 billion out of the total investment of $1.26 billion to complete the Brightstar Corp.
share purchases, and the remaining $0.15 billion of SoftBank Corp.’s investment was contributed to Brightstar
Corp. in order to fund, among others, ongoing corporate activities.
SoftBank BB Corp., a subsidiary of SoftBank Corp., divided its commerce and service business and newly
established SoftBank C&S on April 1, 2014. All shares of SoftBank C&S held by SoftBank Corp. weretransferred to SB C&S Holdings G.K., a wholly-owned subsidiary of Brightstar Corp., and SoftBank Corp.
acquired additional common stocks of Brightstar Global Group Inc on the same date. As a result, theCompany’s ownership share of the voting rights and common stocks of Brightstar Global Group Inc. became
approximately 62% on April 1, 2014 (please refer to (b) structure below).
SoftBank Corp. acquired all remaining interests of Brightstar Global Group Inc. held by Marcelo Claure on
August 6, 2014 and Brightstar Global Group Inc. became a wholly owned subsidiary of SoftBank Corp (pleaserefer to (c) structre below).

66

SoftBank Corp. Consolidated Financial Report
For the fiscal year ended March 31, 2015(a) Structure as of March 31, 2014(b) Structure as of April 1, 2014(c) Structure as of August 6, 201467SoftBank Corp. Consolidated Financial Report
For the fiscal year ended March 31, 2015b. Purpose of consolidation
Brightstar Corp. is one of the world’s largest specialized wireless distributors and a leading provider of diversified
services focused on enhancing the performance and results of the key participants in the wireless device value
chain: manufacturers, operators and retailers. Its services include Supply Chain Solutions, Handset Protection &Insurance, Buyback and Trade-in Solutions, Multi-Channel Retail Solutions, and Financial Services. Today,
Brightstar Corp. provides services in over 125 countries and has a local presence in over 50 countries.
The Company acquired Sprint in July 2013, expanding its business operations from Japan to the U.S. With
Brightstar Corp. becoming a subsidiary, the Comapny aims to strengthen its purchasing scale for mobile devices
and further increase competitiveness both in Japan and the U.S.

c. Summary of Brightstar Corp.

Name

Brightstar Corp.

Address

9725 NW 117th Ave, #300 Miami, Florida, U.S.A.

Name and title of representative

Jaymin Patel, President and Chief Executive Officer(Assumed the post on March 30, 2015)

Business description

Mobile device distribution

Common stock$2,000Date of foundation

September 23, 1997

Consolidated sales$7,227,879 thousand (For the fiscal year ended December 31, 2013, US GAAP)

d. Acquisition date
January 30, 2014e. Consideration transferred and the component(Millions of yen)

Acquisition date
(January 30, 2014)
128,378

Payment by cashA

Total consideration transferred

128,378

Acquisition-related costs of ¥1,190 million arising from the business combination are recognized in “Selling,
general and administrative expenses.”

68SoftBank Corp. Consolidated Financial Report
For the fiscal year ended March 31, 2015

f. Fair value of assets and liabilities, non-controlling interests and goodwill on the acquisition date1(Millions of yen)

Acquisition date
(January 30, 2014)
308,188
67,962Current assets
Intangible assets
Total assets

376,150

Current liabilities
Non-current liabilities

248,198
75,134

Total liabilities

323,332
52,818B

Net assets
Non-controlling interests2
3

GoodwillC

4,901

A-(B-C)80,461

Notes:
1. Adjustment of the provisional amount
Consideration transferred is allocated to acquired assets and assumed liabilities based on the fair value on theacquisition date.
2015.

Allocation of the consideration transferred was completed during the fiscal year ended March 31,

The details of the adjustments from the initial provisional amounts are as follows.

Due to the additional

analysis performed by Brightstar Corp. management, current assets decreased by ¥32,456 million and current liabilities
decreased by ¥12,320 million. As a result, goodwill increased by ¥20,604 million.
2. Non-controlling interests
Non-controlling interests in an acquiree that are present ownership interests and entitle their holders to a proportionate
share of the entity’s net assets in the event of liquidation are measured based on the proportionate interests at
acquisition date in the identifiable net assets of the acquiree at acquisition date.
3. Goodwill
Goodwill reflects excess earning power expected from the future business development and the synergy with existing
businesses.

g. Estimation of fair values of acquired receivables, contractual amounts receivables and amounts not expected tobe collected
As for fair value of ¥156,897 million of acquired receivables and other receivables (mainly sales receivables), thetotal amount of contracts is ¥159,633 million and the estimate of the contractual cash flows not expected to becollected at the acquisition date is ¥2,736 million.

h. Payment for acquisition of control over subsidiaries(Millions of yen)

Acquisition date
(January 30,2014)
Payment for the acquisition by cash
Cash and cash equivalents held by the acquiree at the time ofacquisition of control(128,378)

Payment for the acquisition of control over the subsidiary by cash

(86,950)

69

41,428

SoftBank Corp. Consolidated Financial Report
For the fiscal year ended March 31, 2015

i. Sales and net loss of the acquiree
The amounts of the acquiree’s sales and net loss before elimination of inter-company transactions after theacquisition date, which are recorded in the consolidated statements of income for the fiscal year ended March 31,
2014, are ¥137,534 million and ¥1,704 million, respectively.
In addition, the above net loss includes amortization expenses, which are related to intangible assets recognized at
the acquisition date, and others.

7. Segment information(1) Description of reportable segments
The Company’s reportable segments are components of business activities for which discrete financial
information is available, and such information is regularly reviewed by the Company’s board of directors in orderto make decisions about the allocation of the resources and assess its performance.
The Company has four segments, the Mobile Communications segment, the Sprint segment, the Fixed-line
Telecommunications segment, and the Internet segment.
The Mobile Communications segment provides, mainly through SoftBank Mobile Corp., mobile communication
services, and sales of mobile handsets and accessories. In addition, online games for smartphones and otherdevices are produced and distributed through GungHo and Supercell.
The Sprint segment provides, through Sprint, mobile communication services, sale of mobile handsets andaccessories accompanying the mobile communication services, and the fixed-line telecommunication services in
the U.S.
The Fixed-line Telecommunications segment provides, mainly through SoftBank Telecom Corp.,
telecommunication services such as data communication and fixed-line telephone services for corporate
customers. It also provides, mainly through SoftBank BB Corp., broadband services for individual customers.
The Internet segment provides, mainly through Yahoo Japan Corporation, Internet-based advertising operations.
(2) Net sales and income of reportable segments
Accounting policies for reportable segments are the same as the policies described in “Note 3. Significant
accounting policies.”
Income of reportable segments is based on income from operating income, excluding “Gain from remeasurement
relating to business combination” and “Other operating income (loss),” as follows:
Segment income = (net sales – cost of sales – selling, general and administrative expenses) in each segment
Intersegment transaction prices are determined under the same general business conditions as applied forexternal customers.
The following is information about the Company’s net sales and income by reportable segment. The Company
also discloses “EBITDA (segment income before depreciation and amortization)” by reportable segment.

70SoftBank Corp. Consolidated Financial Report
For the fiscal year ended March 31, 2015

For the fiscal year ended March 31, 2014
(Millions of yen)
MobileCommunications

Sprint1

Reportable segments
Fixed-line
Telecommunications
Internet

Total

Other2

ReconciliAtions3

Consolidated

Net sales
Customers

3,142,663 2,600,743

442,152

396,554

6,582,112

84,539-6,666,651

288

105,938

3,315

132,396

39,914(172,310)

-

Total

3,165,518 2,601,031

548,090399,869

6,714,508

124,453(172,310)

6,666,651

EBITDA
Depreciation andamortization

1,000,829

412,342

170,379

204,318

1,787,868

13,592(22,968)

1,778,492(394,984) (418,461)(62,077)(15,369)(890,891)(7,551)(1,462)(899,904)

605,845

108,302

188,949

896,977

6,041(24,430)

878,588

Intersegment

Segment income (loss)
Gain from remeasurement
relating to businesscombination

22,855(6,119)253,886(55,430)

Other operating loss
Operating income

1,077,044

Finance cost(271,478)

Equity in income ofassociates
Dilution gain from changes
in equity interests
Other non-operating
income74,402
3,633
40,448

Income before income tax

924,049

For the fiscal year ended March 31, 2015
(Millions of yen)
Reportable segments
MobileCommunications

SprintFixed-line
Telecommunications

Internet

Total

Other2Customers
Intersegment

4,143,653

3,594,167

436,015

415,5218,589,356

80,865-45,860205,854

105,041

3,613

360,368

30,319(390,687)

-

Total

4,189,513

3,800,021

541,056

419,134

8,949,724

111,184(390,687)

8,670,221

EBITDA
Depreciation andamortization

1,149,610

653,040

160,335

204,898

2,167,883(10,504)(24,477)

2,132,902(454,323)(579,152)(60,072)(17,897)(1,111,444)(9,912)(1,175)(1,122,531)

695,287

73,888100,263

187,001

1,056,439(20,416)(25,652)

1,010,371

ReconciliAtions3

Consolidated

Net sales

Segment income
Gain from remeasurement
relating to businesscombination

8,670,221-

Other operating loss

(27,668)

Operating income

982,703

Finance cost

(366,505)

Equity in income ofassociates
Dilution gain from changes
in equity interests

599,815

Other non-operating loss

(15,582)

Income before income tax

1,277,045

76,614

Notes:
1. The Sprint segment includes the results of Sprint after the acquisition date.
2.“Other” includes Fukuoka SoftBank HAWKS-related business.
3.“Reconciliations” includes an elimination of intersegment transactions and the corporate general expenses unallocated to eachreportable segment.

71SoftBank Corp. Consolidated Financial Report
For the fiscal year ended March 31, 20158. Property, plant and equipment
The components of the carrying amounts of property, plant and equipment are as follows:(Millions of yen)

Buildings and structures
Telecommunications equipment
Equipment and fixtures
Land
Construction in progress
Other
Total

As of
March 31, 2014
258,637
2,827,064
129,338
92,545
266,136
12,607
3,586,327

As ofMarch 31, 2015
267,633
3,251,673
365,305
97,342
318,345
17,1504,317,448

9. Intangible assets
The components of the carrying amounts of intangible assets are as follows:(Millions of yen)

As ofMarch 31, 2014
Intangible assets with indefinite useful lives
FCC licenses
Trademarks
Intangible assets with finite useful lives
Software
Customer relationships
Favorable lease contracts
Game titles
Trademarks
Spectrum migration costs*
Other
Total

As of
March 31, 2015

3,709,526
622,975

4,320,296
727,251

647,386
677,494140,217
166,52252,475
161,106
6,177,701

757,866
582,223
145,191
109,21159,58353,550148,411
6,903,582

Note:

Spectrum migration costs are the amounts that the Company incurred in connection with the costs arising from themigration of the existing users from the 900 MHz band, which SoftBank Mobile Corp. acquired, to the otherfrequency spectrum based on the termination campaign.

72SoftBank Corp. Consolidated Financial Report
For the fiscal year ended March 31, 2015

10. Interest-bearing debt
(1) Components of interest-bearing debt
The components of interest-bearing debt are as follows:(Millions of yen)

As ofMarch 31, 2014
Current
Short-term borrowings
Commercial paper
Current portion of long-term borrowings
Current portion of corporate bonds
Current portion of lease obligations
Current portion of preferred securities
Current portion of installment payables
Total
Non-current
Long-term borrowings
Corporate bonds
Lease obligations
Preferred securities
Installment payables
Total

As of
March 31, 2015

270,529
32,000393,566
139,300
264,295
48,209
1,147,899

413,846
32,000525,898
183,557
411,453
200,000
50,661
1,817,415

2,243,855
4,743,073
730,915
199,156
105,155
8,022,154

2,116,498
6,825,868
744,911
102,552
9,789,829(2) Financial covenantsa. Financial covenants on interest-bearing debts of SoftBank Corp.
SoftBank Corp.’s interest-bearing debt includes financial covenants and the major financial covenants are as
follows.
(a) The amount of SoftBank Corp.’s net assets at the end of the fiscal year must not fall below 75% of
SoftBank’s net assets at the end of the previous year.
(b) The consolidated statement of financial position of the Company and BB Mobile Corp. at the end of the
fiscal year must not show a net capital deficiency. The statement of financial position of SoftBank Mobile
Corp., SoftBank BB Corp. and SoftBank Telecom Corp. at the end of the fiscal year must not show a net
capital deficiency.
(c) In the Company’s consolidated financial statement, operating income (loss) or net income (loss) attributable
to the owner of the parent company must not result in losses for two consecutive years.
(d) Adjusted net interest-bearing debts1 or leverage ratios2 designated in the loan agreement must not exceed
certain respective amounts or numbers at the end of each annual reporting period and at the end of thesecond quarter. The threshold amounts of adjusted net interest-bearing debts and leverage ratios shall besoftened when the balance of cash and cash equivalents and the fair value of listed shares held by theCompany exceed certain amounts.
Notes:
1. Adjusted net interest-bearing debts:
Amounts deducting cash and cash equivalents from interest-bearing debts in the consolidated statement of financial
position. Certain adjustments are made such as excluding certain listed subsidiaries such as Sprint from the subject.

73SoftBank Corp. Consolidated Financial Report
For the fiscal year ended March 31, 2015

2. Leverage ratio:
Adjusted net interest-bearing debt / adjusted EBITDA3
3. Adjusted EBITDA:
Certain adjustments are made to EBITDA such as excluding listed subsidiaries such as Sprint.

b. Financial covenants on interest-bearing debts of Sprint
Major covenants on the interest-bearing debt issued by Sprint are as follows:(a) Holders of a portion ($21.6 billion) of notes issued by Sprint are provided with the right to require Sprint torepurchase the notes if there is a change of control and if there is a decline, to a certain extent, in ratings ofthe applicable notes by the Rating Services. Also, holders of certain bonds issued by Clearwire ($300
million) are provided with the right to require the repurchase of the notes if a change of control triggering
event occurs.
(b) It is required that as of the last day of each quarter, Sprint’s ratio of total indebtedness1 to adjusted
EBITDA2 should not exceed a threshold level. Exceeding the ratio could result in the maturities being
accelerated. The limit for the ratio was 6.5 as of March 31, 2015.
Note:
1. Total indebtedness: the sum of Sprint’s outstanding debt (excluding trade payable) and guarantee of indebtedness, withcertain adjustments defined in contracts with lenders.
2. Adjusted EBITDA: Trailing four quarters EBITDA including adjustments defined in contract with lenders.

(3) Components of (decrease) increase in short-term interest-bearing debt
The components of “(Decrease) increase in short-term interest-bearing debt, net” in the consolidated statements ofcash flows are as follows:(Millions of yen)

Net (decrease) increase of short-term borrowings*
Net increase of commercial paper
Total

Fiscal year ended
March 31, 2014
(233,794)
32,000(201,794)

Fiscal year ended
March 31, 2015
108,541
108,541Note:
The Company has entered into a loan agreement to refinance the bridge loan for the consolidation of Sprint and repayment ofsome existing borrowings in September 2013. The increase and the decrease in short-term borrowings for the fiscal year
ended March 31, 2014 include the increase of borrowings of ¥1,034.9 billion on July 10, 2013, from the bridge loan and thedecrease of borrowings by the repayment of the bridge loan in the amount of ¥1,284.9 billion (including the amount of
repayment of ¥250 billion on December 21, 2012).

(4) Components of proceeds from long-term interest-bearing debt
The components of “Proceeds from long-term interest-bearing debt” in the consolidated statements of cash flows
are as follows:(Millions of yen)

Proceeds from long-term borrowings
Proceeds from issuance of corporate bonds1,5
Proceeds from sale and leaseback of newly acquired equipment
Total

74

Fiscal year ended
March 31, 2014
2,587,755
1,665,232
445,307
4,698,294

Fiscal year ended
March 31, 2015
443,726
1,763,657
508,118
2,715,501

SoftBank Corp. Consolidated Financial Report
For the fiscal year ended March 31, 2015

Notes:
1. Corporate bonds issued for the fiscal year ended March 31, 2014 are as follows:

Date of issuanceTotal amountof issuanceInterest
rate

USD-denominated Senior Notes
due year 2020

April 23, 2013

$2,485 million¥244,176 million2

4.50%
3.29%3

April 15, 2020

Euro-denominated Senior Notes
due year 2020

April 23, 2013€625 million¥80,206 million2

4.63%
4.05%3

April 15, 2020

43rd Unsecured Straight
Corporate Bond

June 20, 2013

¥400,000 million

1.74%

June 20, 2018

44th Unsecured Straight Corporate
Bond

Nov. 29, 2013

¥50,000 million

1.69%

Nov. 27, 2020

7.25% Notes due 2021

Sept. 11, 2013

$2,250 million¥220,950 million

7.25%

Sept. 15, 2021

7.875% Notes due 2023

Sept. 11, 2013

$4,250 million¥417,350 million

7.88%

Sept. 15, 2023

7.125% Notes due 2024

Dec. 12, 2013

$2,500 million¥252,550 million

7.13%

June 15, 2024

Company name / Name of bonds
SoftBank Corp.

Date of maturity

Sprint Corporation4

Notes:
2. The cash outflow amount, fixed by the currency swap contract designated as a cash flow hedge, at the time of redemption, is
described in JPY.
3. The interest rate, after considering the impact of converting the fixed interest rate in foreign currency into a fixed interest rate in
JPY by the currency swap contract, designated as a cash flow hedge, is described.
4. These corporate bonds were issued after the acquisition of Sprint.
5. Corporate bonds issued for the fiscal year ended March 31, 2015 are as follows:

Date of issuanceTotal amountof issuanceInterest
rate

Date of maturity

45th Unsecured Straight
Corporate Bond

May 30, 2014

¥300,000 million

1.45%

May 30, 201946th Unsecured Straight
Corporate Bond

Sept. 12, 2014

¥400,000 million

1.26%

Sept. 12, 2019

1st Unsecured SubordinatedCorporate Bond

Dec. 19, 2014

¥400,000 million

2.50%

Dec. 17, 2021

2nd Unsecured SubordinatedCorporate Bond

Feb.

9, 2015¥450,000 million

2.50%

Feb.

Feb. 24, 2015

$1,500 million¥179,340 million

7.63%

Feb. 15, 2025

Dec. 19, 2014$300 million¥34,317 million

4.00%

Dec. 17, 2019

Company name / Name of bonds
SoftBank Corp.

9, 2022

Sprint Corporation
7.625% Notes due 2025
Sprint Communications, Inc.

6

Export Development Canada
Facility (Tranche 3)75

SoftBank Corp. Consolidated Financial Report
For the fiscal year ended March 31, 2015

Notes:
6. Sprint Communications, Inc. is a subsidiary of Sprint.

(5) Components of repayment of long-term interest-bearing debt
The components of “Repayment of long-term interest-bearing debt” in the consolidated statements of cash flows
are as follows:(Millions of yen)

Fiscal year ended
March 31, 2014
(1,133,313)(533,538)(253,283)(51,460)(1,971,594)

Repayment of long-term borrowings
Redemption of corporate bonds1,3
Payment of lease obligations
Payment of installment payables
Total

Fiscal year ended
March 31, 2015
(459,852)(170,181)(306,156)(48,594)(984,783)

Notes:
1. Corporate bonds redeemed for the fiscal year ended March 31, 2014 are as follows:

Company name / Name of bonds

Date of issuance

Amount of redemption

Interest
rate

Date of redemption

June 2, 2010

¥25,000 million

1.17%

May 31, 2013

Sept. 17, 2010

¥130,000 million

1.24%

Sept. 17, 2013

Jan. 27, 2012

¥50,000 million

0.42%

Jan. 27, 2014

SoftBank Corp.
31st Unsecured Straight
Corporate Bond
33rd Unsecured Straight
Corporate Bond
38th Unsecured Straight
Corporate Bond
Clearwire Communications LLC2
12% Senior Secured Notes due
2015
12% Second-Priority Secured
Notes due 2017

$2,763 million¥277,997 million$500 million¥50,510 million

Nov. 24, 2009
Dec.

9, 201012.00%
12.00%

Sept. 11, 2013 toDec. 1, 2013
Oct. 30, 2013
Dec. 1, 2013

Notes:
2. These corporate bonds were redeemed after the acquisition of Sprint. Clearwire Communications LLC is a subsidiary of Sprint.

76

SoftBank Corp. Consolidated Financial Report
For the fiscal year ended March 31, 2015

3. Major corporate bonds redeemed for the fiscal year ended March 31, 2015 are as follows:

Company name / Name of bonds

Date of issuance

Amount of redemption

Interest
rate

Date of redemption

June 19, 2007

¥14,900 million

4.36%

June 19, 2014

March 11, 2010

¥30,000 million

3.35%

March 11, 2015

June 10, 2011

¥30,000 million

0.65%

June 10, 2014

8.25%

March 27, 2015

8.38%

March 27, 2015

3.49%

May 1, 2014

SoftBank Corp.
26th Unsecured Straight
Corporate Bond
30th Unsecured Straight
Corporate Bond
37th Unsecured Straight
Corporate Bond
Ymobile Corporation
USD-denominated Senior Notes
due year 2018

April 1, 2011

Euro-denominated Senior Notes
due year 2018

April 1, 2011

$420 million¥50,251 million€200 million¥26,471 million

iPCS, Inc.4
Second Lien Senior Secured
Floating Rate Notes due 2014

$181 million¥18,513 million

April 23, 2007

Notes:
4. iPCS, Inc. is a subsidiary of Sprint.

11. Foreign exchange rate
Exchange rates of the major currencies used for translating financial statements of foreign operations are as follows:(1) Rate at the end of the period(yen)

U.S. dollars

As ofMarch 31, 2014102.92

As ofMarch 31, 2015
120.17(2) Average rate for the quarter
For the fiscal year ended March 31, 2014

U.S. dollars

Three-month period
endedJune 30, 2013
97.94

(yen)
Three-month period Three-month period Three-month period
ended
ended
ended
September 30, 2013 December 31, 2013
March 31, 2014
98.20
101.02103.28For the fiscal year ended March 31, 2015

U.S. dollars

Three-month period
endedJune 30, 2014
102.14(yen)
Three-month period Three-month period Three-month period
ended
ended
ended
September 30, 2014 December 31, 2014
March 31, 2015
104.35114.39119.5677

SoftBank Corp. Consolidated Financial Report
For the fiscal year ended March 31, 201512. Equity(1) Capital surplus
For the fiscal year ended March 31, 2014
In connection with the consolidation of Supercell, the Company acquired preferred stocks of Supercell andoptions (“conversion options”) to convert the preferred stocks to common stocks. The fair value of ¥10,323
million for the preferred stocks and the conversion options is deducted from capital surplus as “Acquisition of
options to convert to subsidiaries’ common stocks.” The details are described in “(4) Supercell” in “Note 6.
Business combinations.”
For the fiscal year ended March 31, 2015
The Company acquired all remaining shares of Brightstar Global Group Inc. indirectly held by Marcelo Claure,
the former Chairman and CEO of Brightstar Corp., and owns 100% of the equity interest of Brightstar Global
Group Inc. In connection with this transaction, ¥30,509 million is deducted from capital surplus as “Changes ininterests in subsidiaries.”(2) Accumulated other comprehensive income
The components of accumulated other comprehensive income are as follows:(Millions of yen)

As ofMarch 31, 2014

As ofMarch 31, 2015

Available-for-sale financial assets

14,122

14,524

Cash flow hedges
Exchange differences on translating
foreign operations(19,942)(7,345)

175,670

533,207

169,850

540,386Total
13. Other operating loss
The components of other operating loss are as follows:(Millions of yen)

Fiscal year ended
March 31, 2014
Gain on partial pension settlement1
Severance costs associated with reduction inwork force of Sprint
Provision for unprofitable contract2
Impairment loss
Assets related to ADSL services3
Assets related to Sprint4
Trademarks5
Goodwill
Other
Total

-

Fiscal year ended
March 31, 2015
18,726(23,645)-(27,129)(21,271)(11,210)(7,654)(7,404)(5,822)
305(55,430)

2,006(27,668)

Notes:
1. Sprint made an amendment associated with the defined benefit pension plan to offer certain terminated participants, who
had not begun to receive plan benefits, the opportunity to receive their benefits as an immediate lump sum distribution.
This is the gain arising from the settlement.

78

SoftBank Corp. Consolidated Financial Report
For the fiscal year ended March 31, 2015

2. Loss was recognized in the Fixed-line Telecommunications segment due to the provision made by SoftBank Telecom
Corp. for the excess of expected future cost of delivery for a contracted communication service over its contracted
amount.
3. As a result of reviewing the business plan for ADSL services at eAccess Ltd. in the Fixed-line Telecommunications
segment, the recoverable amount of assets related to ADSL services became lower than their carrying amount, andtherefore the carrying amounts were reduced to their value in use. Impairment loss on customer relationships was¥8,655 million and impairment loss on telecommunications equipment and software was ¥2,555 million.
Value in use was ¥4,410 million, which was calculated by discounting management approved estimated future cashflow
plan by 9.24%, weighted average capital cost before tax.
4. In the Sprint segment, certain telecommunications equipment inventories which will not be used in the future are
impaired.
5. The trademarks such as “EM,” “EMOBILE,” “WILLCOM,” which eAccess Ltd. and WILLCOM, Inc. used as service
names in the Mobile Communications segment were all impaired for the fiscal year ended March 31, 2014. This isbecause these trademarks were no longer expected to be used since eAccess Ltd. and WILLCOM, Inc. had a plan to
conduct an absorption type merger, with eAccess Ltd. being the surviving company and WILLCOM, Inc. being thecompany absorbed, effective on June 1, 2014. eAccess Ltd. changed its name to Ymobile Corporation on July 1, 2014
and started to provide services under the “Y!mobile” brand on August 1, 2014.

14. Finance cost
The components of finance cost are as follows:(Millions of yen)

Fiscal year ended
March 31, 2014
(271,478)

Interest expense

Fiscal year ended
March 31, 2015
(366,505)

15. Dilution gain from changes in equity interest
For the fiscal year ended March 31, 2015
The Company recorded dilution gain from changes in equity interest of ¥599,668 million related to Alibaba, which is anassociate of the Company. This is mainly due to the issuance of new shares by Alibaba and the conversion ofConvertible Preference Shares issued by Alibaba into common stock in connection with its listing on the New York
Stock Exchange on September 19, 2014.

79SoftBank Corp. Consolidated Financial Report
For the fiscal year ended March 31, 2015

16. Other non-operating income and loss
The components of other non-operating income and loss are as follows:(Millions of yen)Interest income1
Foreign exchange gain and loss
Derivative loss1,2Gain and loss on sales of securities
Impairment loss on securities
Gain on sales of equity method associates
Impairment loss on equity method associates3
Gain from remeasurement relating to applying
equity method4
Gain from financial assets at FVTPL
Other
Total

Fiscal year ended
March 31, 2014
21,015(7,068)(19,588)
12,325(9,168)33,058-

Fiscal year ended
March 31, 2015
4,257
11,050(8,257)(2,443)(15,170)
1,882(35,261)-

11,177-

11,2099,874
40,448

5,974(15,582)

Notes:
1. Stock acquisition rights in the convertible bonds issued by Sprint Nextel Corporation and undertaken by Starburst II on
October 22, 2012, were reported at fair value as a derivative, being bifurcated from the host contracts as they are classified
as embedded derivatives and were recorded in “Other financial assets” in the consolidated statements of financial position.
As the Company exercised the relevant stock acquisition right and the Company derecognized the derivatives, a derivativeloss of ¥16,356 million was recorded during the fiscal year ended March 31, 2014.
With regard to the host contract (the bonds), the amount of payment less the fair value of the embedded derivative at
inception of the bond was recorded in the consolidated statements of financial position at inception. This deduction
amount is accreted using the effective interest method with corresponding adjustments to interest income. Initially, theexpected remaining accretion period for the bond discount was seven years based on the contract term of the bond.
However, based on the approval for the acquisition at the shareholders’ meeting of Sprint on June 25, 2013, the Company
changed the estimate of the expected remaining term to the completion of the acquisition. During the fiscal year ended
March 31, 2014, the Company recognized interest income of ¥16,219 million. There was an increase of interest incomeof ¥15,568 million from the reflection of this change in the expected remaining term of the bond.
2. Of the foreign currency forward contract totaling $22.0 billion which was related to the acquisition of Sprint, with regard to$5.0 billion that did not meet the criteria for hedge accounting, a derivative loss of ¥13,186 million was recorded for the
fiscal year ended March 31, 2014. Hedge accounting was applied to $17.0 billion as a cash flow hedge. Fair value of¥311,659 million of hedge instruments on the acquisition date was deducted from the initial amount of goodwill which wasrecognized upon the acquisition.
3.The Company recorded impairment loss of ¥35,261 million with regard to the equity method associate for the fiscal year
ended March 31, 2015 as the fair value had been declining for a prolonged period and the carrying amount was reduced to
the recoverable amount.
4. Due to the increase in percentage of voting rights, the equity method is newly applied to the investment in an associate andthe gain is arising from remeasurement of the interest already held by the Company at the time of the equity method
application, based on the fair value on the date of the equity method application.

80SoftBank Corp. Consolidated Financial Report
For the fiscal year ended March 31, 201517. Earnings per share(1) Basic earnings per share

Net income attributable to owners of the parent (Millions of yen)
Weighted-average number of ordinary shares(Thousands of shares)
Basic earnings per share (yen)Fiscal year ended
March 31, 2014
520,250

Fiscal year ended
March 31, 2015
668,361

1,190,650
436.95

1,188,830
562.20Fiscal year ended
March 31, 2014
520,250

Fiscal year ended
March 31, 2015
668,361(1,992)(3,509)518,258

664,852

1,190,650

1,188,830

1,622

1,061

1,192,272
434.681,189,891
558.75(2) Diluted earnings per share

Net income attributable to owners of the parent (Millions of yen)
Adjustments:
Effect of dilutive securities issued by subsidiaries andassociates (Millions of yen)
Net income used in the calculation of diluted earnings per share(Millions of yen)
Weighted-average number of ordinary shares (Thousands of shares)
Adjustments:
Warrants and corporate bonds with stock acquisition rights(Thousands of shares)
Weighted-average number of ordinary shares used in thecalculation of diluted earnings per share (Thousands of shares)
Diluted earnings per share (yen)18. Supplemental information to the consolidated statements of cash flows(1) Scope of purchase of property, plant and equipment and intangible assets“Purchase of property, plant and equipment and intangible assets” includes cash outflows from purchasing
long-term prepaid expenses that are included in “Other non-current assets” in the consolidated statements offinancial position.
(2) Presentation of cash flow regarding finance leases
Once the Company purchases telecommunications equipment for the purpose of assembly, installation andinspection, the Company sells the equipment to lease companies for sale and leaseback purposes. The leased
asset and lease obligation are recorded in the consolidated statements of financial position.
The cash outflows from the purchase of the equipment from vendors are included in “Purchase of property, plantand equipment and intangible assets" under cash flows from investing activities, and the cash inflows from thesale of the equipment to lease companies are included in “Proceeds from long-term interest-bearing debt" undercash flows from financing activities.
(3) Proceeds from settlement of foreign currency forward contract for acquisition of control of subsidiaries
For the fiscal year ended March 31, 2014
The proceeds are from the settlement of a foreign currency forward contract of $18.5 billion related to theconsolidation of Sprint.

81

SoftBank Corp. Consolidated Financial Report
For the fiscal year ended March 31, 201519. Significant subsequent events
Change in scope of consolidation from subsidiary to associate with the loss of control over GungHo
GungHo, a subsidiary of the Company, will not be qualified as a subsidiary and will newly become an associate of theCompany, after the completion of the tender offer (the “Tender Offer”) for share of GungHo, which was resolved at
GungHo’s board of directors’ meeting held on April 28, 2015, and the execution of the pledge termination agreement(as defined below) with Son Holdings Inc. (“Son Holdings”) to extinguish the pledge over the shares of GungHo heldby Heartis G.K. (the “Heartis”). The financial impact from this loss of control in the fiscal year ending March 2016 is
not determined yet.
(1) Summary of the loss of control
The Company has decided to tender in the Tender Offer for shares of GungHo, and the Company and GungHo
entered into an Agreement, under which the Company has agreed to tender in the Tender Offer a portion of thecommon shares of GungHo held by the Company.
Heartis and Son Holdings reportedly roughly agreed as of April 21, 2015 to extinguish the pledge on 100,000,000
shares, out of the common shares of GungHo held by Heartis by May 31, 2015 (“the pledge termination agreement”),
and the possible execution of the pledge termination agreement will reportedly terminate the Agreement on Exerciseof Voting Rights* by up to the 100,000,000 shares.
Accordingly, as a result of the Tender Offer and execution of the pledge termination agreement, the Company expects
GungHo will not be qualified as a subsidiary and will newly become an associate of the Company.
Note:
Heartis holds 223,080,000 common shares of GungHo (ownership ratio: 19.36%), and according to the the Change Report
No.9 submitted by Heartis on January 13, 2015 pertaining to the Report of Possession of Large Volume, Heartis andMasayoshi Son, chairman and CEO of SoftBank Corp., have reportedly entered into a Memorandum of Understanding on
Exercise of Voting Rights for Deferment of Execution of Pledges (the “MOU”), on April 1, 2013. Under the MOU, since allof GungHo common shares held by Heartis are reportedly pledged with Son Holdings, Masayoshi Son’s asset managementcompany, as a pledgee, in order to defer the execution of pledges, Heartis has reportedly agreed to the effect that at theshareholders’ meeting of GungHo, Heartis will exercise the voting rights related to 213,080,000 shares (ownership
ratio:18.50%) out of the common shares of GungHo held by Heartis, in accordance with Masayoshi Son’s instruction.

The

total number of voting rights held by the Company and those voting rights held by Heartis to be exercised in accordance with
Masayoshi Son’s instruction is 6,739,200 and it accounts for 58.72% of 11,476,886 voting rights of all the shareholders of
GungHo as of December 31, 2014 as described in 18th Yukashokenhokokusho of GungHo submitted on March 23, 2015
(rounded off to the second decimal place).

(2) Summary of the tender in the Tender Offer(a) Shares to be tendered

Common shares of GungHo; 188,235,200 shares (ownership ratio :16.34%*)(b) Tender offer price¥425 per share(c) Tender offer period

April 30, 2015 to June 1, 2015(d) Start date of settlement

June 24, 2015

Note:
Ownership ratio means the percentage (rounded off to the second decimal place) to the total number of outstanding shares of
GungHo, which is 1,152,010,000 shares as of April 28, 2015.

82SoftBank Corp. Consolidated Financial Report
For the fiscal year ended March 31, 2015

(3) Reason for the tender in the Tender Offer
As described in the press release “Notice Regarding Acquisition of Treasury Shares and Tender Offer of Treasury
Shares” issued by GungHo on April 28, 2015, the Company received a proposal from GungHo in April 2015 that
GungHo would like to acquire some of its common shares held by the Company to increase the flexibility ofmanagement and create a structure which allows management to make decisions and execute those decisions in atimely manner. After a series of discussion, the Company and GungHo have reached an agreement that theCompany will tender in the Tender Offer 188,235,200 shares (ownership ratio: 16.34 %), a portion of the commonshares of GungHo held by the Company.
(4) Number of shares held before and after the tender in the Tender Offer(a) Number of shares held before the tender

460,840,000 shares including indirect ownership(Number of voting rights: 4,608,400)(Voting rights ratio：40.15%)(b) Number of shares to be tendered in the Tender Offer

188,235,200 shares(c) Number of shares held after the tender272,604,800 shares including indirect ownership(Number of voting rights: 2,726,048)(Voting rights ratio：28.41%)*Note:
The percentage of the voting rights to 9,594,534 voting rights (rounded off to the second decimal place). 9,594,534 voting rights
is obtained by subtracting 1,882,352 voting rights related to 188,235,200 shares to be tendered in the Tender Offer, from
11,476,886 voting rights of all the shareholders of GungHo as of December 31, 2014 as described in 18th Yukashokenhokokusho
of GungHo submitted on March 23, 2015. The voting rights ratio held by the Company and Heartis, after the execution of thepledge termination agreement, is 40.20%.
(5) Summary of GungHo(a) Name

GungHo Online Entertainment, Inc.

(b) Address

3-8-1, Marunouchi, Chiyoda-ku, Tokyo(c) Name and title of representative

Kazuki Morishita, President & CEO(d) Business description

Planning, development, operation, and distribution of PC online games
Planning, development, operation, and distribution of smartphone games
Planning, development, and sale of consumer games(e) Common stock¥5,338 million (as of December 31, 2014)(f) Date of foundation

July 1, 1998

(6) Impact on financial results
The impact from this loss of control in the fiscal year ending March 2016 is not determined yet.

83