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 condensed interim consolidated
financial statements appearing in item 3 of this report.

SoftBank Corp.
Consolidated Financial Report
For the nine-month period ended December 31, 2013 (IFRS)Tokyo, February 12, 2014

1.

Financial Highlights(1) Results of Operations(Percentages are shown as year-on-year changes)(Millions of yen; amounts are rounded off to the nearest million yen.)

OperatingincomeNet sales
Amount%Amount%Incomebefore income Net incometax

Net income
Total
attributable tocomprehensive
owners of theincomeparentAmountAmount%Amount%%Amount%Nine-month period ended¥4,561,703 94.4 ¥924,228 46.3 ¥798,141 37.5 ¥526,122 48.3 ¥488,231 58.1 ¥545,586 27.8
December 31, 2013
Nine-month period ended¥2,346,972
December 31, 2012-

¥631,522-¥580,326-¥354,806-¥308,790-¥426,902-

Basic earnings per share Diluted earnings per share
(yen)
(yen)
Nine-month period ended
December 31, 2013

¥409.80¥409.04

Nine-month period ended
December 31, 2012¥280.48¥276.30(2) Financial Position(Millions of yen; amounts are rounded off to the nearest million yen.)

Total assets

Total equity

Equityattributable toowners of theparentAs of December 31, 2013¥16,464,158¥2,883,373¥1,986,529

12.1

As of March 31, 2013

¥7,216,809¥1,930,428¥1,612,756

22.3

2.

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

Dividends(Record date)Fiscal year ended
March 31, 2013
Fiscal year ending
March 31, 2014
Fiscal year ending
March 31, 2014
(Forecasted)

Dividends per share
Second quarter
Third quarter
Fourth quarter

First quarter

Total

(yen)

(yen)

(yen)

(yen)

(yen)

-

20.00

-

20.00

40.00

-

20.00

20.00

40.00

Note: Revision of forecasts on the dividends: No

3. Forecasts on the Consolidated Operations Results for the Fiscal Year Ending March 2014 (April 1, 2013 – March 31, 2014)
The Company projects net sales of at least ¥6 trillion and operating income of at least ¥1 trillion under IFRSs in the fiscal year
ending March 31, 2014. This operating income includes gains of ¥253.9 billion in total resulting from the reevaluation of theexisting equity interests held in GungHo Online Entertainment, Inc. and WILLCOM, Inc. at fair value when both companies
became subsidiaries.

* Notes(1) Significant changes in scope of consolidation (changes in scope of consolidation of specified subsidiaries): Yes
Newly consolidated: One company Sprint Communications, Inc.
(2) Changes in accounting policies and accounting estimate[1] Changes in accounting policies required by IFRSs: No[2] Changes in accounting policies other than those in [1]: No[3] Changes in accounting estimates: Yes
Note:
Please refer to page 28 “(2) Changes in accounting policies and accounting estimates” under “2. Notes to Summary
Information” for details.

(3) Number of shares issued (common stock)[1] Number of shares issued (including treasury stock):
As of December 31, 2013:
As of March 31, 2013:[2]

Number of treasury stock:
As of December 31, 2013:
As of March 31, 2013:[3]

1,200,660,365 shares
1,200,660,365 shares
12,232,065 shares
9,160,493 shares

Average stocks during nine-month (Apr.-Dec.):
As of December 31, 2013:
As of December 31, 2012:

1,191,374,458 shares
1,100,942,038 shares* Implementation status of interim review proceduresThis interim consolidated financial report is not subject to interim review procedures based on the Financial Instruments andExchange Act, and the review procedures for the interim consolidated financial statements were being conducted when thisreport 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. For the differences between IFRSs andJapanese Generally Accepted Accounting Principles (“JGAAP”) in respect of the Company’s financial data, please refer to page68 “15. First-time adoption of IFRSs” in “(6) Notes to Condensed Interim Financial Statements” under “3. Condensed Interim
Consolidated Financial Statement” for details.
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 February 12, 2014, the Company will hold an earnings results briefing for financial institutions, institutional investors, andthe media. This earnings results briefing will be broadcast live on our website in both Japanese and English(http://www.softbank.jp/en/corp/irinfo/). The Earnings Results Data Sheets will also be posted on the Company’s web sitearound 4 p.m. on the day of the announcement: (http://www.softbank.jp/en/corp/irinfo/presentations/)

SoftBank Corp. Consolidated Financial Report
For the nine-month period ended December 31, 2013

(Appendix)

Contents
1. Qualitative Information Regarding Nine-month Period Results .......................................................................... P. 2
(1) Qualitative Information Regarding Consolidated Results of Operations ...................................................... P. 2
a. Consolidated Results of Operations .......................................................................................................... P. 2
b. Results by Segment .................................................................................................................................. P. 6
(Reference 1: Principal Operational Data) .............................................................................................. P. 11(Reference 2: Definition and Calculation Method of Principal Operational Data) ................................. P. 13(Reference 3: Capital Expenditure and Depreciation) ............................................................................ P. 15(2) Qualitative Information Regarding Consolidated Financial Position .......................................................... P. 16
a. Assets, Liabilities, and Equity ................................................................................................................. P. 16
b. Cash Flows ............................................................................................................................................. P. 24(3) Qualitative Information Regarding Forecast on the Consolidated Operation Results ................................. P. 27
2. Notes to Summary Information .......................................................................................................................... P. 28(1) Significant Changes in Scope of Consolidation for the Nine-month Period
ended December 31, 2013 .......................................................................................................................... P. 28(2) Changes in Accounting Policies and Accounting Estimates ....................................................................... P. 28
3. Condensed Interim Consolidated Financial Statements ..................................................................................... P. 29(1) Condensed Interim Consolidated Statements of Financial Position ............................................................ P. 29(2) Condensed Interim Consolidated Statements of Income and Other Comprehensive Income ..................... P. 31(3) Condensed Interim Consolidated Statements of Changes in Equity ........................................................... P. 35(4) Condensed Interim Consolidated Statements of Cash Flows ...................................................................... P. 37(5) Significant Doubt about Going-Concern Assumption ................................................................................. P. 38(6) Notes to Condensed Interim Consolidated Financial Statements ................................................................ P. 38

1

SoftBank Corp. Consolidated Financial Report
For the nine-month period ended December 31, 2013

1. Qualitative Information Regarding Nine-month Period Results
Adoption of IFRSsSoftBank Corp. adopted the International Financial Reporting Standards (IFRSs) from the three-month period ended
June 30, 2013 (the “first quarter”; transition date: April 1, 2012). The financial data for the nine-month period ended
December 31, 2012 (the “same period of the previous fiscal year”) and the fiscal year ended March 31, 2013 (the“previous fiscal year”) are also presented based on IFRSs.
The main items to be adjusted from JGAAP in accordance with the adoption of IFRSs are as follows:
・ Change in scope of consolidation- eAccess Ltd. and Wireless City Planning Inc., which are associates under JGAAP, are subsidiaries under IFRSs.
・ Items related to consolidated statements of financial position- Regarding certain securitization transactions that previously qualified for extinguishment of financial assets under
JGAAP, securitized receivables are recognized retrospectively and accompanying liabilities are recognized asinterest-bearing debt under IFRSs when they are not qualified for derecognition of financial assets under IFRSs.
- Preferred securities issued by a subsidiary are accounted for as equity transactions and recorded as minority
interests under JGAAP.

Under IFRSs they are accounted for as under interest-bearing debt in the consolidated

statements of financial position.
・ Items related to the consolidated statements of income- Goodwill is amortized regularly under JGAAP.

Under IFRSs, goodwill is not amortized regularly but tested for

impairment at least once a year.
- Commission fees paid related to the sales of mobile handsets are accounted for as costs when they occur under
JGAAP.

Under IFRSs, the amount of commission fees expected to occur in the future is deducted fromrevenues.
Please refer to page 68 “15. First-time adoption of IFRSs” under “3. Condensed Interim Consolidated Financial
Statements (6) Notes to Condensed Interim Consolidated Financial Statements” for details of these adjustments.
Consolidation of Sprint
As of July 10, 2013 the Company (SoftBank Corp. and its subsidiaries) closed the acquisition of Sprint Corporation(previously Sprint Nextel Corporation, “Sprint”) and started its consolidation.

Along with this, a new reportablesegment, “Sprint,” has been established from the three-month period ended September 30, 2013 (the “second
quarter”).
For details about consolidation of Sprint, please refer to page 42 “(2) Sprint” under “3. Condensed Interim
Consolidated Financial Statements (6) Notes to Condensed Interim Consolidated Financial Statements 5. Businesscombinations.”(1) Qualitative Information Regarding Consolidated Results of Operations
a. Consolidated Results of Operations
For the nine-month period ended December 31, 2013 (the “period”), the Company achieved consolidated net
sales of ¥4,561,703 million, a ¥2,214,731 million (94.4%) increase year on year, with a ¥292,706 million (46.3%)
increase in operating income to ¥924,228 million.

Income before income tax increased by ¥217,815 million(37.5%) year on year to ¥798,141 million, net income increased ¥171,316 million (48.3%) to ¥526,122 million,

2

SoftBank Corp. Consolidated Financial Report
For the nine-month period ended December 31, 2013

and net income attributable to owners of the parent increased ¥179,441 million (58.1%) to ¥488,231 million.
The main factors affecting earnings for the period were as follows:(a) Net Sales
Net sales totaled ¥4,561,703 million, for a ¥2,214,731 million (94.4%) year-on-year increase.

This was mainly

due to recording sales of ¥1,684,439 million in the newly added Sprint segment from the second quarter.

Apart

from this, the Mobile Communications segment also recorded a ¥485,813 million year-on-year increase in net
sales.

The increase in the Mobile Communications segment was due to the impact of consolidating eAccessLtd. from January 2013, GungHo Online Entertainment, Inc. 1 (“GungHo”) from April 2013, WILLCOM, Inc. 2
from July 2013, and Supercell Oy 3 (“Supercell”) from October 31, 2013, as well as increases in the number ofsubscribers and units sold 4 at SoftBank Mobile Corp., which led to increases in both service revenue (mainly
former telecom service revenue) and product sales (mainly former sales of handsets).

(b) Cost of Sales
Cost of sales increased ¥1,484,247 million (127.3%) year on year to ¥2,650,642 million.
due to the addition of the Sprint segment.

This was primarily

Furthermore, in the Mobile Communications segment, in addition to

the impact of consolidating eAccess Ltd., GungHo, WILLCOM, Inc., and Supercell, the cost of goods rose inline with an increase in the number of smartphones, especially iPhone, 5 sold at SoftBank Mobile Corp.

(c) Selling, General and Administrative Expenses
Selling, general and administrative expenses increased by ¥684,558 million (124.3%) year on year to¥1,235,391 million.

This was mainly due to the addition of the Sprint segment.

Furthermore, in the Mobile

Communications segment, in addition to the impact of consolidating eAccess Ltd., GungHo, WILLCOM, Inc.,and Supercell, there was an increase in sales commissions at SoftBank Mobile Corp.

(d) Income from Remeasurement Relating to Business Combination
Income from remeasurement relating to business combination was ¥253,886 million, an increase of ¥252,108
million year on year.

This corresponds to income of ¥150,120 million and ¥103,766 million recognizedfollowing reevaluation at fair value of the Company’s respective equity interests in GungHo and WILLCOM,
Inc. that it already held on the dates when the Company acquired control of the respective companies.

Pleaserefer to page 39 “(1) GungHo Online Entertainment, Inc.” and page 46 “(3) WILLCOM, Inc.” under “3.
Condensed Interim Consolidated Financial Statements (6) Notes to Condensed Interim Consolidated Financial
Statements 5. Business combinations” for details.
1

GungHo was made a subsidiary of the Company from an associate in April 2013. See page 39 “ (1) GungHo Online Entertainment, Inc.” under“3. Condensed Interim Consolidated Financial Statements (6) Notes to Condensed Interim Consolidated Financial Statements 5. Businesscombinations” for details.
2
WILLCOM, Inc. was made a subsidiary of the Company in July 2013. See page 46 “(3) WILLCOM, Inc.” under “3. Condensed Interim
Consolidated Financial Statements (6) Notes to Condensed Interim Consolidated Financial Statements 5. Business combinations” for details.
3
Supercell was made a subsidiary of the Company on October 31, 2013. See page 48 “(4) Supercell Oy” under “3. Condensed Interim
Consolidated Financial Statements (6) Notes to Condensed Interim Consolidated Financial Statements 5. Business combinations” for details.
4
Units sold: the total number of new subscriptions and handset upgrades
5
iPhone is a trademark of Apple Inc. The iPhone trademark is used under license from Aiphone K.K.

3

SoftBank Corp. Consolidated Financial Report
For the nine-month period ended December 31, 2013(e) Other Operating Loss
Other operating loss was ¥5,328 million (not recorded in the same period of the previous fiscal year).

(f) Operating Income
As a result of (a) to (e), operating income totaled ¥924,228 million, for a ¥292,706 million (46.3%) year-on-yearincrease.

(g) Finance Cost, Net
Finance cost, net deteriorated ¥97,665 million year on year to a loss of ¥146,049 million.
components were as shown below.

The main

Please refer to page 62 “12. Finance cost, net” under “3. Condensed

Interim Consolidated Financial Statements (6) Notes to Condensed Interim Consolidated Financial Statements”
for details about derivative gain (loss) and interest income.
i. Interest expense increased ¥147,065 million year on year to ¥186,632 million.

The increase was mainly

due to the impact of adding the interest expense of Sprint, as well as an increase in interest expenses forbonds and borrowings at SoftBank Corp.
ii. Gain on sales of associates’ stocks increased ¥26,408 million year on year to ¥26,701 million.

This wasmainly due to the sale of shares of PPLive Corporation in December 2013.
iii. Interest income increased ¥18,519 million year on year to ¥20,044 million.

Regarding the convertible

bonds issued by Sprint Nextel Corporation and undertaken by Starburst II, Inc. on October 22, 2012,
initially the expected remaining accretion period for the bond discount was seven years based on thecontract term of the bonds.

However, the Company changed the estimate of the expected remaining term

to the completion of the acquisition.

Accordingly, the Company recorded interest income of ¥16,219

million, in conjunction with the change in the expected remaining term of the bonds.
iv. Derivative gains (loss) deteriorated ¥17,673 million year on year to a loss of ¥15,057 million.
・Stock acquisition rights in the convertible bonds issued by Sprint Nextel Corporation and undertaken by
Starburst II, Inc. were recorded at fair value as a derivative.

As the Company exercised the relevant stockacquisition rights and derecognized the derivatives, a derivative loss of ¥16,356 million was recorded.
・Of the foreign currency forward contract totaling $22.0 billion related to the acquisition of Sprint, withregard to the $5.0 billion that did not meet the criteria for hedge accounting, a derivative loss of ¥13,186
million was recorded.

Hedge accounting was applied to the remaining $17.0 billion, which resulted in a

deduction of the acquisition cost of Sprint by ¥311,659 million.

(h) Equity in Income of Associates
Equity in income of associates was ¥19,962 million, an improvement of ¥22,774 million year on year (equity inloss of associates of ¥2,812 million was recorded for the same period of the previous fiscal year).

The increase

was mainly due to recording equity in income of associates of ¥22,897 million related to Alibaba Group
Holding Limited.

4SoftBank Corp. Consolidated Financial Report
For the nine-month period ended December 31, 2013(i) Income before Income Tax
As a result of (f) to (h), income before income tax was ¥798,141 million, an increase of ¥217,815 million(37.5%) year on year.

(j) Income Taxes
Provisions for current income taxes were ¥272,019 million, an increase of ¥46,499 million (20.6%) year onyear.

(k) Net Income
As a result of (i) to (j), net income totaled ¥526,122 million, for a ¥171,316 million (48.3%) year-on-yearincrease.

(l) 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, and GungHo from (k), net income attributable to owners of the parent was ¥488,231
million, for a ¥179,441 million (58.1%) increase year on year.

(m) Comprehensive Income
Total comprehensive income was ¥545,586 million, for a ¥118,684 million (27.8%) year-on-year increase.

Of

this, comprehensive income attributable to owners of the parent was ¥482,464 million (for a ¥101,947 million(26.8%) year-on-year increase).

5

SoftBank Corp. Consolidated Financial Report
For the nine-month period ended December 31, 2013

b. Results by Segment
The Company’s reportable segments(Note 1) 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.”
From the second quarter, the former “Domestic Mobile Communications” and “Domestic Fixed-line
Telecommunications” segments were renamed as “Mobile Communications” and “Fixed-line Telecommunications,”
respectively. The Sprint segment was newly established from the second quarter following Sprint’s consolidation.

In the Mobile Communications segment, SoftBank Mobile Corp. and other companies provide mobile
communications services and sales of mobile handsets and accessories, etc.
In the Sprint segment, Sprint provides mobile communications services in the U.S. and sales of mobile handsets andaccessories accompanying the services, as well as fixed-line telecommunications services.
In the Fixed-line Telecommunications segment, SoftBank Telecom Corp. provides telecommunication services suchas fixed-line telephone and data communications services to corporate customers, while SoftBank BB Corp. and othercompanies provide broadband services for individual customers.
In the Internet segment, Yahoo Japan Corporation provides Internet-based advertising operations and other services.
Main businesses and core companies of each reportable segment are listed in the table below.
Segments
Main Businesses
Core Companies
・Provision of mobile communications services SoftBank Mobile Corp.
in JapaneAccess Ltd.
WILLCOM, Inc.
・Sales of mobile handsets and accessories
・Sales of PC software and peripherals
Wireless City Planning Inc.
Mobile・Production and distribution of online games SoftBank BB Corp.
Communications
for smartphones and other devices
SoftBank Telecom Corp.
GungHo Online
Entertainment, Inc.
Supercell Oy
・Provision of mobile communications services Sprint Corporation
by Sprint in the U.S.
・Sales of mobile handsets and accessories
Reportable Sprint
accompanying the above services
Segments
・Provision of fixed-line telecommunications
services by Sprint
・Provision of telecom services such as
SoftBank Telecom Corp.
fixed-line telephone and data communications SoftBank BB Corp.
Fixed-line
services to domestic corporate customers
eAccess Ltd.
Telecommunications ・Provision of broadband services to domestic Yahoo Japan Corporationindividual customers
・Services accompanying the above services
・Internet advertising
Yahoo Japan Corporation
・Operation of e-commerce sites such as
Internet
YAHUOKU! and Yahoo! Shopping・Membership services
Others・Fukuoka SoftBank HAWKS related businesses Fukuoka SoftBank HAWKS
Corp.
Fukuoka SoftBank HAWKS
Marketing Corp.

Notes:
1. The results for the same period of the previous fiscal year are presented in accordance with the above
reportable segments.
2. Segment income is calculated as follows:
Segment income = (net sales – cost of sales – selling, general and administrative expenses) in each segment
3. Consolidated operating income is the result of adding or deducting income from remeasurement relating tobusiness combination and other operating income (loss) to the sum of segment income.

6SoftBank Corp. Consolidated Financial Report
For the nine-month period ended December 31, 2013(a) Mobile Communications Segment(Millions of yen)

Nine-month Period
Ended Dec. 31, 2012
YoY

Nine-month Period
Ended Dec. 31, 2013
(the period)

Net sales

1,718,015

2,203,828

485,81328.3%

Segment income

419,267

514,579

95,312

22.7%

ChangeChange %< Overview of Operations >The segment’s net sales increased by ¥485,813 million (28.3%) year on year to ¥2,203,828 million.

The mainfactor behind the increase was the impact of consolidating eAccess Ltd., GungHo, WILLCOM, Inc., andSupercell in addition to increases in the number of mobile phone subscribers and units sold at SoftBank Mobile
Corp., which led to increases in both service revenue (mainly former telecom service revenue) and product sales(mainly former sales of mobile handsets).
The segment’s operating expenses increased by ¥390,501 million (30.1%) year on year to ¥1,689,249 million.
The principal cause of this increase was the impact of consolidating eAccess Ltd., GungHo, WILLCOM, Inc.,and Supercell, and higher operating expenses at SoftBank Mobile Corp.

The cost of goods and salescommissions rose at SoftBank Mobile Corp. in line with sales enhancement of smartphones, especially iPhone.
As a result, segment income increased by ¥95,312 million (22.7%) year on year to ¥514,579 million.

< Overview of Business Operations >・Number of Subscribers
Net subscriber additions (new subscribers minus cancellations) for the period at SoftBank Mobile Corp. totaled
2,280,000.

This was primarily the result of steady sales of smartphones, especially iPhone, as well as

communication modules and other items, mainly due to conducting various sales promotions for iPhone. 6

As aresult, the cumulative number of subscribers at SoftBank Mobile Corp. as of the end of December 2013 stood at
34,760,000.

・ARPU
ARPU (excluding communication modules) 7 at SoftBank Mobile Corp. for the three-month period ended
December 31, 2013 (the “third quarter”), decreased by ¥140 year on year to ¥4,490.
rose ¥160 year on year to ¥2,960.

Out of this, data ARPU

The decline in ARPU mainly reflects an increase in low-ARPU handsets anda decline in the usage of the voice call function of voice devices.

Meanwhile, the continuous growth in thenumber of high-data ARPU smartphone subscribers contributed to the increase in data ARPU.

6

Including a promotion for new and upgrading customers offering discounts and a promotion offering discounts to upgrading existing customers
that allows their family members to use the old handset (if they make a new subscription).
7
For definition and calculation of ARPU, churn rate, and upgrade rate at SoftBank Mobile Corp., see page 13 “(Reference 2: Definition andCalculation Method of Principal Operational Data) (a) SoftBank Mobile Corp.”

7

SoftBank Corp. Consolidated Financial Report
For the nine-month period ended December 31, 2013

・Number of Units Sold
The number of units sold at SoftBank Mobile Corp. for the period increased by 460,000 year on year to
9,886,000.

The increase was primarily due to various sales promotions for iPhone, which continued to deliver

steady sales.

・Churn Rate and Upgrade Rate
The churn rate7 at SoftBank Mobile Corp. for the third quarter was 1.28%, up 0.16 of a percentage point year on
year.

This was mainly due to an increase in cancellations for non-voice devices reaching the end of their

two-year subscriptions.

Furthermore, the upgrade rate7 was 1.64%, down 0.46 of a percentage point year on

year.

(b) Sprint Segment(Millions of yen)

Nine-month Period
Ended Dec. 31, 2012
YoY
Net sales

Nine-month Period
Ended Dec. 31, 2013
(the period)

Segment was newly
established from thesecond quarter

Segment income(loss)

ChangeChange %1,684,439

1,684,439-%(58,178)(58,178)-%

Note:
4. In the Sprint segment, the earnings reflect the operation results of Sprint since July 11, 2013.
< Overview of Operations >The segment’s net sales totaled ¥1,684,439 million.
and product sales.

This mainly includes Sprint platform 8 service revenue

Nextel platform 9 service revenue is no longer recorded in the period as a result of its

shutdown on June 30, 2013.
The segment’s operating expenses totaled ¥1,742,617 million.

Operating expenses include ¥87,094 millionof amortization of customer relationships (amortized based on the sum-of-the-digits method) recorded at
Sprint’s consolidation.
As a result, segment loss was ¥58,178 million.

・Recording a Charge Related to Sprint’s Workforce Reduction Plan
On January 16, 2014, Sprint began implementation of a workforce reduction plan.

In accordance with US

GAAP, Sprint recorded a charge for severance and related costs of $165 million (¥17,389 million *converted at$1.00 = ¥105.39 based on the currency rate as of December 31, 2013) for the fiscal year ended December 31,
2013.

In addition, Sprint expects to record additional related charges on its consolidated financial statements

8

Sprint-operated CDMA and LTE networks. This excludes the Nextel/ iDEN network (see footnote 9) and the subscribers/network acquired
through transactions with U.S. Cellular Corporation (“U.S. Cellular”) and Clearwire Corporation (“Clearwire”).
9
Wireless service operated on Integrated Digital Enhanced Network (iDEN), which Sprint acquired from Nextel Corporation in 2005.

8

SoftBank Corp. Consolidated Financial Report
For the nine-month period ended December 31, 2013

in future periods.

However, since the $165 million recorded by Sprint for the fiscal year ended December 31,

2013 does not meet the requirements of IFRSs for recording as a cost as of December 31, 2013, it was notrecorded in the Company’s consolidated financial statements for the period.

When costs related to thisworkforce reduction plan are recorded the Company expects to record them as other operating loss.

< Overview of Business Operations >Net subscriber additions at Sprint for the period from July 1 to December 31, 2013 totaled 164,000 and thecumulative number of subscribers at the end of the period stood at 55,354,000.

Of these, on the Sprint

platform there was a net increase of 587,000, bringing its cumulative number of subscribers to 53,934,000 at theend of the period.
For the third quarter, Sprint platform ARPU 10 was $64.11 for postpaid and $26.78 for prepaid, and its churnrate10 was 2.07% for postpaid and 3.01% for prepaid.

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

Nine-month Period
Ended Dec. 31, 2012
YoY

Nine-month Period
Ended Dec. 31, 2013
(the period)

Net sales

391,438

407,425

15,987

4.1%

Segment income

89,43887,678(1,760)(2.0%)

ChangeChange %< Overview of Operations >The segment’s net sales increased by ¥15,987 million (4.1%) year on year to ¥407,425 million.

The net salesof the fixed-line telecommunications business of eAccess Ltd. contributed to this increase in conjunction with
its consolidation.

On the other hand, revenues from the broadband business for individual customers decreased

due to a decline in the number of ADSL service subscribers.
Segment income decreased by ¥1,760 million (2.0%) year on year to ¥87,678 million.

This was mainly due

to the decrease in net sales in the broadband business for individual customers.

10

For definition and calculation of ARPU and churn rate of Sprint platform, see page 14 “(Reference 2: Definition and Calculation Method of
Principal Operational Data) (b) Sprint Platform.”

9

SoftBank Corp. Consolidated Financial Report
For the nine-month period ended December 31, 2013(d) Internet Segment(Millions of yen)

Nine-month Period
Ended Dec. 31, 2012
YoY

Nine-month Period
Ended Dec. 31, 2013
(the period)

Net sales

255,144

297,976

42,83216.8%

Segment income

130,499

143,088

12,5899.6%

ChangeChange %<Overview of Operations>
The segment’s net sales increased by ¥42,832 million (16.8%) year on year to ¥297,976 million.
was the result of growth in display advertising
Yahoo! Display Ad Network (YDN)

12

11

The increase

revenue due to a significant increase in advertisements on

and an increase in revenue from sponsored-search advertising, especiallythrough smartphones, at Yahoo Japan Corporation.
Segment income increased by ¥12,589 million (9.6%) year on year to ¥143,088 million.

This was primarily

the result of the increase in net sales.

11

Graphical, Flash®, and video advertising that appears on a certain defined area. Includes Premium advertisements, such as Brand Panel shown
on Yahoo! JAPAN’s top page and Yahoo! Display Ad Network (YDN).
12
Advertisements displayed on the contents pages of Yahoo! JAPAN and major affiliated websites. Includes a mechanism that showsadvertisements related to advertisers’ products and services in which a user might be interested, based on the content the user is viewing, theuser’s interests (as derived from the user’s browsing history or search keywords), attributes, or geographical locations.

10SoftBank Corp. Consolidated Financial Report
For the nine-month period ended December 31, 2013

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

Fiscal Year Ending March 31, 2014

Three-month Three-month Three-month Three-month Fiscal Year Three-month Three-month Three-month
Ended
Period Ended Period Ended Period Ended Period Ended
PeriodPeriod Ended Period Ended
March 31,
June 30, 2012 Sept. 30, 2012 Dec. 31, 2012 March 31,
Ended June
Sept. 30,
Dec. 31, 2013
2013
2013
30, 2013
201313Full Year

Q1

Q2

Q3

32,48033,29034,06834,760

4,292

4,319

4,343

4,415

4,497

4,814

4,943

5,086

5,199

5,310

5,403

753

759

861

1,158

3,531

810

778

692

Postpaid

772

771

872

1,170

3,585

818

790

716

Prepaid

-19

-12

-11

-12

-55

-8

-12

-24

4,510

4,650

4,640

4,400

4,550

4,460

4,520

4,490

2,710

2,760

2,800

2,840

2,780

2,870

2,930

2,960

2,359

2,631

3,486

3,082

11,558

2,575

2,734

3,347

2,586

2,997

3,843

3,686

13,113

3,023

3,150

3,713

New subscriptions

1,663

1,718

1,894

2,243

7,519

1,790

1,904

2,015

Handset upgrades

923

1,279

1,949

1,443

5,594

1,233

1,246

1,698

Churn rate15

1.03

1.06

1.12

1.14

1.09

0.99

1.12

1.28

Postpaid

0.96

1.00

1.06

1.09

1.03

0.94

1.06

1.24

1.05

1.42

2.10

1.51

1.53

1.25

1.23

1.64

4,210

4,340

4,300

4,060

4,230

4,090

4,120

4,090

2,540

2,580

2,610

2,630

2,590

2,640

2,690

2,700

Q1

Q2

Q3

Q4

SoftBank Mobile Corp.

29,702

30,461

31,322eAccess Ltd.

4,138

4,259

WILLCOM, Inc. (PHS)4,696

Net additions14

Cumulative
subscribers 14(Thousands)(Thousands)(¥ / month)

ARPU 15(excl. communication
modules)

SoftBank Mobile Corp.

Data(Thousands)

Handsets shipped 16(Thousands)

Units sold 17(% / month)(% / month)

Upgrade rate15(Ref.)(¥ / month)

ARPU15(incl. communication
modules)
Data

13

The figures for cumulative subscribers, net additions (total/prepaid), units sold (total/new subscriptions), and churn rate have been corrected due
to under counting the number of prepaid subscriptions at SoftBank Mobile Corp. in August and September 2013.
14
Includes the number of prepaid mobile phones and communication module service subscribers. The module service subscribers net additions
for the period were 607,000 and cumulative number of communication module service subscribers at the end of the third quarter totaled
3,507,000.
15
For definition and calculation method of ARPU, churn, and upgrade rates at SoftBank Mobile Corp., see page 13 “(Reference 2: Definition andCalculation Method of Principal Operational Data) (a) SoftBank Mobile Corp.”
16
Handsets shipped: the number of handsets shipped (sold) to handset dealers
17
Units sold: the total number of new subscriptions and handset upgrades

11SoftBank Corp. Consolidated Financial Report
For the nine-month period ended December 31, 2013(b) Sprint Segment
Fiscal Year Ended March 31, 2013

Fiscal Year Ending March 31, 2014

Three-month Three-month Fiscal Year Three-month
Period Ended Period Ended Ended March Period Ended31, 2013
Dec. 31, 2012 March 31, 2013
June 30, 2013

Three-month
Period Ended
June 30, 2012

Three-month
Period Ended
Sept. 30, 2012

Q1

Q2

Q3

Sprint total

56,38655,96355,626

Sprint platform

51,97452,85729,43429,844

Full Year

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

Q1

Q2

Q3

55,21153,58854,87755,35453,54053,89653,37653,25253,93430,24530,25730,45130,091
15,29930,14915,621

Q4

Cumulative Subscribers 18(Thousands)

Postpaid
Prepaid

14,14914,60815,13315,701

15,215Wholesale &affiliate

8,391

8,405

8,162

7,938

7,710

7,862

8,164

Nextel platform

4,412

3,106

2,086

1,315

-

-

-

U.S. Cellular &Clearwire 19

-

-

-

-

212

1,625

1,420

1,281

883

683

-520

-95

682

(Thousands)

Sprint platform

Net additions18

356

Postpaid

442

410

401

12

194

-360

Prepaid

451

459

525

568

-486

84

58
322

Wholesale &affiliate

388

14

-243

-224

-228

181

302

Postpaid

63.38

63.21

63.04

63.67

64.20

64.28

Prepaid

25.49

26.19

26.30

25.95

26.96

25.33

64.11
26.78

Postpaid

1.69

1.88

1.98

1.84

1.83

1.99

Prepaid

3.16

2.93

3.02

3.05

5.22

3.57

($ / month)

ARPU 20(% / month)

Churn rate20

18

2.07
3.01

Includes the number of prepaid mobile phones and communication module service subscribers.
Sprint acquired approximately 352,000 postpaid subscribers and 59,000 prepaid subscribers through the acquisition of assets from U.S. Cellular
on May 17, 2013. As a result of acquiring Clearwire, Sprint acquired 788,000 postpaid subscribers, 721,000 prepaid subscribers, 93,000
wholesale subscribers, and transferred 29,000 Sprint wholesale subscribers relating to a Clearwire MVNO arrangement that were originallyrecognized on the Sprint platform to this category on July 9, 2013.
20
For definition and calculation of ARPU and churn rate of Sprint platform, see page 14 “(Reference 2: Definition and Calculation Method of
Principal Operational Data) (b) Sprint Platform.”
19

12

SoftBank Corp. Consolidated Financial Report
For the nine-month period ended December 31, 2013

(Reference 2: Definition and Calculation Method of Principal Operational Data)(a) SoftBank Mobile Corp.
i. ARPU
ARPU (Average Revenue Per User per month）(rounded to the nearest ¥10)
ARPU (excluding communication modules)= (data-related revenue (excluding communication modules) + basic monthly charge, voice-related revenues, etc.
(excluding communication modules)) / number of active subscribers (excluding communication modules)
Data ARPU (excluding communication modules)= data-related revenue (excluding communication modules) / number of active subscribers (excluding communication
modules)
ARPU (including communication modules)= (data-related revenue + basic monthly charge, voice-related revenues, etc.) / number of active subscribers
Data ARPU (including communication modules)= data-related revenue / number of active subscribers
Number of active subscribers: the total of the monthly number of active subscribers for the relevant period((subscribers at the beginning of the month + subscribers at the end of the month) / 2).
The number of active subscribers is based on SoftBank Mobile Corp.’s cumulative
subscribers including prepaid mobile phones and devices that do not have voicecommunication functionalities (excluding communication modules). The number of active
subscribers used in the calculation of ARPU (including communication modules) includes
communication modules.
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 fromincoming calls, device warrantee services, advertising revenue, 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.

ii. Churn rate
Churn rate = churn / number of active subscribers (rounded to the nearest 0.01%)
Churn = total number of subscribers that churned during the relevant period
Number of active subscribers: the total of the monthly number of active subscribers for the relevant period((subscribers at the beginning of the month + subscribers at the end of the month) / 2).
The number of active subscribers is based on SoftBank Mobile Corp.’s cumulative
subscribers including prepaid mobile phones, communication modules, and devices that do
not have voice communication functionalities. The number of active subscribers used in
the calculation of churn rate of postpaid subscribers excludes prepaid mobile phones.

iii. Upgrade rate
Upgrade rate = number of upgrades / number of active subscribers (rounded to the nearest 0.01%)
Number of upgrades = total number of upgrades during the relevant period
Number of active subscribers: the total of the monthly numbers of active subscribers for the relevant period((subscribers at the beginning of the month + subscribers at the end of the month) / 2).
The number of active subscribers is based on SoftBank Mobile Corp.’s cumulative
subscribers including prepaid mobile phones, communication modules, and devices that do
not have voice communication functionalities.

13

SoftBank Corp. Consolidated Financial Report
For the nine-month period ended December 31, 2013(b) Sprint Platform
i. ARPU
ARPU (Average Revenue Per User per month）(rounded to the nearest $.00)
ARPU = service revenue / average number of active subscribers
Number of active subscribers: the total of the monthly number of active subscribers for the relevant period((subscribers at the beginning of the month + subscribers at the end of the month) / 2).
The number of active subscribers is based on cumulative subscribers including
communication modules and devices that do not have voice communication functionalities.

ii. Churn rate
Churn rate = number of deactivations / average number of active subscribers (rounded to the nearest 0.01%)
Deactivations = 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 on the same date.
Number of active subscribers: the total of the monthly number of active subscribers for the relevant period((subscribers at the beginning of the month + subscribers at the end of the month) / 2).
The number of active postpaid subscribers is based on cumulative subscribers including
communication modules and devices that do not have voice communication functionalities.

14

SoftBank Corp. Consolidated Financial Report
For the nine-month period ended December 31, 2013

(Reference 3: Capital Expenditure and Depreciation)(Note 5)(a) Capital Expenditure (acceptance basis)（Millions of yen）

Fiscal Year Ended March 31, 2013

Fiscal Year Ending March 31,2014

Three-month Three-month Three-month Three-month Fiscal Year Three-month Three-month Three-month
Period Ended Period Ended Period Ended Period Ended
Ended
Period Ended Period Ended Period Ended
June 30, 2012 Sept. 30, 2012 Dec. 31, 2012 March 31,
March 31, June 30, 2013 Sept. 30, 2013 Dec. 31, 2013
2013
2013
Q1
Q2
Q3
Q4
Full YearQ1
Q2
Q3
MobileCommunications
segment

92,500141,927

176,705

238,751

649,883

163,581

164,563

170,469

163,574

208,733(Note 6)

Segment was newly established from the second quarter ofthe fiscal year ending March 31, 2014

Sprint segment
Fixed-line
Telecommunications segment

10,292

12,708

16,216

26,466

65,682

9,903

16,74313,091

Internet segment

4,942

3,195

6,310

8,538

22,985

4,393

2,746

9,194

Others

7,163

1,866

2,126

3,456

14,611

2,835

4,694

3,082

Consolidated total

114,897

159,696

201,357

277,211753,161

180,712352,320

404,569(b) Depreciation and Amortization（Millions of yen）

Fiscal Year Ended March 31, 2013

Fiscal Year Ending March 31,2014

Three-month Three-month Three-month Three-month Fiscal Year Three-month Three-month Three-month
Period Ended Period Ended Period Ended Period Ended
Ended
Period Ended Period Ended Period Ended
June 30, 2012 Sept. 30, 2012 Dec. 31, 2012 March 31,
March 31, June 30, 2013 Sept. 30, 2013 Dec. 31, 2013
2013
2013
Q1
Q2
Q3
Q4
Full YearQ1
Q2
Q3
MobileCommunications
segment

59,69363,54867,77889,204

280,223

83,367

92,228100,205

134,191

152,411(Note 6)

Segment was newly established from the second quarter ofthe fiscal year ending March 31, 2014

Sprint segment
Fixed-line
Telecommunications segment

12,603

12,642

12,79815,78653,82914,80914,91815,402

Internet segment

3,171

2,917

2,992

3,490

12,570

3,221

3,218

3,700

Others

1,956

2,114

2,127

2,301

8,498

1,902

2,085

2,329

Consolidated total

77,423

81,221

85,695

110,781355,120

103,299

246,640

274,047

Notes:
5. The results for the previous fiscal year and each quarter of the previous fiscal year are presented in accordancewith the reportable segments adopted since the second quarter of the fiscal year ending March 31, 2014.
6. Capital expenditure and depreciation and amortization of the Sprint segment are reflected from July 11, 2013.

15

SoftBank Corp. Consolidated Financial Report
For the nine-month period ended December 31, 2013

(2) Qualitative Information Regarding Consolidated Financial Positiona. Assets, Liabilities, and Equity
Assets, liabilities, and equity at the end of the third quarter were as follows:(Millions of yen)

As of March 31, 2013

As of Dec. 31, 2013

ChangeChange %Total assets

7,216,809

16,464,158

9,247,349

128.1%

Total liabilities

5,286,381

13,580,785

8,294,404

156.9%

Total equity

1,930,428

2,883,373

952,945

49.4%(a) Current Assets(Millions of yen)

Opening balanceof Sprint on
acquisition date 21(July 10, 2013)
B

Other changes

As ofDec. 31, 2013

ChangeC

D=A+B+C

E=B+C

1,439,057

447,873

159,706

2,046,636

607,579

936,307327,211

178,373

1,441,891

505,584

Other financial assets

229,239

111,764(134,482)

206,521(22,718)

Inventories

54,268105,318

74,623

234,209179,941

Other current assets

127,148

42,65529,993

199,796

72,648

Total current assets

2,786,019

1,034,821

308,213

4,129,053

1,343,034

Item

As of
March 31, 2013
A

Cash andcash equivalents
Trade andother receivables

Current assets totaled ¥4,129,053 million, for a ¥1,343,034 million (48.2%) increase from March 31, 2013 (the“previous fiscal year-end”).

The components of the change of primary items were as follows:i. Cash and cash equivalents
Cash and cash equivalents totaled ¥2,046,636 million, for a ¥607,579 million increase from the previous fiscal
year-end.
・ The Company recognized ¥447,873 million for the consolidation of Sprint on the acquisition date.
・ Sprint issued straight corporate bonds in the amount of $6.5 billion (¥638,300 million) in September 2013,

and $2.5 billion (¥252,550 million) in December 2013.
・ Clearwire redeemed $3,263 million (¥328,507 million) of its bonds before maturity.

ii. Trade and other receivables

21

The figures for the opening balance of Sprint on the acquisition date have been retroactively restated since new information was obtained during
the third quarter. For details please refer to page 44 “f. Fair values of assets and liabilities, non-controlling interests and goodwill on theacquisition date” under “3. Condensed Interim Consolidated Financial Statements (6) Notes to Condensed Interim Consolidated Financial
Statements 5. Business combinations (2) Sprint.”

16

SoftBank Corp. Consolidated Financial Report
For the nine-month period ended December 31, 2013

Trade and other receivables totaled ¥1,441,891 million, an increase of ¥505,584 million from the previous
fiscal year-end.

This increase was primarily due to recording ¥327,211 million for the consolidation of Sprint

on the acquisition date.
iii. Other financial assets
Other financial assets totaled ¥206,521 million, a decrease of ¥22,718 million from the previous fiscal
year-end.

Items such as derivative financial assets, fixed-term deposits, and marketable securities areincluded in other financial assets.
・ The Company recognized ¥111,764 million for the consolidation of Sprint on the acquisition date.
・ The Company had concluded a foreign currency forward contract for $17.0 billion in relation to funding for theacquisition of Sprint and recorded the fair value of this contract of ¥189,357 million in derivative financial assets
at the end of the previous fiscal year. However, this derivative financial asset was derecognized and no value
was ascribed to it due to the settlement of the foreign exchange transaction upon the completion of the acquisition
of Sprint. Please refer to page 62 “12. Finance cost, net” under “3. Condensed Interim Consolidated Financial
Statements (6) Notes to Condensed Interim Consolidated Financial Statements” for details.

(b) Non-current Assets(Millions of yen

Item

Property, plant andequipment

Other changes

As ofDec. 31, 2013

ChangeC

D=A+B+C

E=B+C

1,830,615

1,291,364

435,5113,557,490

1,726,875

Goodwill

927,399282,205

301,697

1,511,301

583,902

Intangible assets

524,8935,301,283

400,2396,226,415

5,701,522

FCC Licenses 22-

3,612,994

169,347

3,782,341

3,782,341

Customer relationships

83,876700,192(56,208)

727,860

643,984

Software411,285

138,330

78,367

627,982

216,697

Trademarks with indefinite
useful lives-

600,266

25,224625,490

625,490

Game titles--

181,937

181,937

181,937

29,732249,501

1,572

280,805

251,073

Investments accounted
for using the equity
method208,664-

104,902

313,566

104,902

Other financial assets

634,647

23,938(294,135)

364,450(270,197)

Deferred tax assets

175,390-(19,914)

155,476(19,914)

Other non-current assets

129,182

12,39464,831

206,407

77,225

Total non-current assets

4,430,790

6,911,184

993,131

12,335,105

7,904,315

Others22

Opening balanceof Sprint on
As ofMarch 31, 2013 acquisition date21(July 10, 2013)
A
B

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

17

SoftBank Corp. Consolidated Financial Report
For the nine-month period ended December 31, 2013

Non-current assets totaled ¥12,335,105 million at the end of the third quarter, for a ¥7,904,315 million (178.4%)
increase from the previous fiscal year-end. The components of the change of primary items were as follows:i. Property, plant and equipment
Property, plant and equipment totaled ¥3,557,490 million, for a ¥1,726,875 million increase from the previous
fiscal year-end.

This was mainly due to ¥1,291,364 million recognized for the consolidation of Sprint on theacquisition date.

In addition, property, plant and equipment increased by ¥435,511 million, mainly due tocapital expenditure in the Mobile Communications and Sprint segments, and because the yen had weakened
against the U.S. dollar at the end of the third quarter compared to the time of acquisition of Sprint.
ii. Goodwill
Goodwill totaled ¥1,511,301 million, for a ¥583,902 million increase from the previous fiscal year-end.
・ The Company recorded ¥282,205 million of goodwill for the consolidation of Sprint on the acquisition date.

In relation to the acquisition of Sprint, the Company entered into a foreign currency forward contract, out of
which $17.0 billion was accounted for under hedge accounting. The fair value on the acquisition date of¥311,659 million of this hedging instrument was deducted from the amount of goodwill initially recognizedfrom the acquisition of Sprint. Please refer to page 45 “(Note 6) Basis adjustment” under “3. Condensed
Interim Consolidated Financial Statements (6) Notes to Condensed Interim Consolidated Financial
Statements 5. Business combinations (2) Sprint f. Fair values of assets and liabilities, non-controllinginterests and goodwill on the acquisition date” for details.
・ The Company recorded goodwill of ¥146,032 million in relation to GungHo, ¥21,469 million in relation to

WILLCOM, Inc., and ¥98,803 million in relation to Supercell on their acquisition dates in conjunction with
their consolidation.
iii. Intangible assets
Intangible assets totaled ¥6,226,415 million, for a ¥5,701,522 million increase from the previous fiscal
year-end.
・ The Company recorded ¥3,782,341 million for FCC Licenses (not recorded in the same period of theprevious fiscal year).

This was mainly because the Company recognized ¥3,612,994 million for the

consolidation of Sprint on the acquisition date, and because the yen had weakened against the U.S. dollar at
the end of the third quarter compared to the time of acquisition of Sprint.

From an accounting perspective

FCC Licenses are non-amortized assets.
・ Customer relationships totaled ¥727,860 million, for a ¥643,984 million increase from the previous fiscal

year-end.

This was mainly due to recognizing Sprint’s customer relationships of ¥700,192 million for the

consolidation of Sprint on the acquisition date.

Customer relationships, mainly in relation to Sprint,

eAccess Ltd. and WILLCOM, Inc., were amortized by a total of ¥105,558 million in the period.
・ Software totaled ¥627,982 million, for a ¥216,697 million increase from the previous fiscal year-end.

Themain components of the change were ¥138,330 million recognized for the consolidation of Sprint on theacquisition date and an increase of ¥78,367 million mainly due to capital expenditures in the Mobile
Communications and Sprint segments.
・ The Company recorded trademarks with indefinite useful lives of ¥625,490 million (not recorded in thesame period of the previous fiscal year).

This was due to recognizing ¥600,266 million for trademarks

18

SoftBank Corp. Consolidated Financial Report
For the nine-month period ended December 31, 2013

held by Sprint for the consolidation on the acquisition date, and because the amount increased as the yen
had weakened against the U.S. dollar at the end of the third quarter compared to the time of acquisition of
Sprint.

Trademarks with indefinite useful lives are non-amortized assets.

・ The Company recorded game titles of ¥181,937 million (not recorded in the same period of the previous

fiscal year).

This was due to recognizing ¥77,796 million for the consolidation of GungHo in April 2013and ¥119,099 million for the consolidation of Supercell on October 31, 2013, and amortizing them by a totalof ¥23,423 million in the period.
iv. Investments accounted for using the equity method
・ Investments accounted for using the equity method totaled ¥313,566 million, for a ¥104,902 million

increase from the previous fiscal year-end.

The increase is mainly due to the Company acquiring some ofthe preferred stocks of Brightstar Corp. from existing shareholders for $660 million (¥66,630 million) by theend of the third quarter.

Please refer to page 65 “Consolidation of Brightstar Corp.” under “3. Condensed

Interim Consolidated Financial Statements (6) Notes to Condensed Interim Consolidated Financial
Statements 14. Significant subsequent events” for details.
v. Other financial assets
Other financial assets totaled ¥364,450 million, for a ¥270,197 million decrease from the previous fiscal
year-end.

At the previous fiscal year-end the convertible bonds issued by Sprint and shares of WILLCOM,

Inc. were recorded as investment securities.

However, the ending amount of both investment securities

became zero as a result of their consolidation in the second quarter.

19

SoftBank Corp. Consolidated Financial Report
For the nine-month period ended December 31, 2013(c) Current Liabilities(Millions of yen)

Item

As of
March 31, 2013
A

Opening balanceof Sprint on
acquisition date21(July 10, 2013)
B

Other changes

As ofDec. 31, 2013

ChangeC

D=A+B+C

E=B+C

Interest-bearing debt

1,534,128

86,961(429,578)

1,191,511(342,617)

Short-term borrowings

458,313-(125,500)

332,813(125,500)

Current portion of
long-term borrowings

631,232

13,380(276,295)

368,317(262,915)

Current portion of
corporate bonds

204,837

63,317(107,296)

160,858(43,979)

Current portion of leaseobligations

192,658

10,26446,737

249,659

57,001Others47,088-32,776

79,864

32,776

Trade andother payables

972,669

647,524(81,623)

1,538,570

565,901

Other financial
liabilities

4,833

-

35

4,868

35

Income taxes
payables

182,050

4,553

5,826

192,429

10,379Provisions

1,602

94,025

10,857

106,484

104,882

Other current
liabilities

142,634

286,160

18,922447,716305,082

Total current
liabilities

2,837,916

1,119,223(475,561)

3,481,578

643,662

Current liabilities at the end of the third quarter totaled ¥3,481,578 million, for a ¥643,662 million (22.7%)
increase from the previous fiscal year-end.

The components of the change of primary items were as follows:i. Interest-bearing debt
Interest-bearing debt totaled ¥1,191,511 million, for a ¥342,617 million decrease from the previous fiscal
year-end.

This was mainly due to decreases of ¥262,915 million in the current portion of long-termborrowings and ¥125,500 million in short-term borrowings.

These decreases were due to the Company

repaying part of existing borrowings in September 2013 in accordance with the refinancing of the Sprintacquisition bridge loan and other existing borrowings and debts.
ii. Trade and other payables
Trade and other payables totaled ¥1,538,570 million for a ¥565,901 million increase from the previous fiscal
year-end.

This was mainly due to ¥647,524 million recognized for the consolidation of Sprint on theacquisition date.
iii. Other current liabilities
Other current liabilities totaled ¥447,716 million for a ¥305,082 million increase from the previous fiscal
year-end.

This was mainly due to ¥286,160 million recognized for the consolidation of Sprint on theacquisition date.

20

SoftBank Corp. Consolidated Financial Report
For the nine-month period ended December 31, 2013(d) Non-current Liabilities(Millions of yen)

As ofMarch 31, 2013

Item

A

Interest-bearing
debt

Opening balanceof Sprint on
acquisition date21(July 10, 2013)
B

Other changes

As ofDec. 31, 2013

ChangeC

D=A+B+C

E=B+C

2,173,725

2,668,163

3,186,698

8,028,586

5,854,861

Long-term
borrowings

510,856

34,854

1,668,381

2,214,091

1,703,235

Corporate bonds

791,919

2,590,208

1,416,053

4,798,180

4,006,261

Lease obligations

564,077

43,101

114,017721,195

157,118

Others306,873-(11,753)

295,120(11,753)

Other financial
liabilities

38,654

6,677

12,49057,821

19,167

Defined benefit
liabilities

14,506

65,763(15,541)

64,72850,222

Provisions

21,765

148,731(32,328)

138,168

116,403

119,628

1,410,344

16,535

1,546,507

1,426,879

80,187

184,107(897)

263,397

183,2102,448,465

4,483,785

3,166,957

10,099,207

7,650,742

Deferred tax
liabilities
Other
non-current
liabilities
Total non-current
liabilities

Non-current liabilities totaled ¥10,099,207 million, for a ¥7,650,742 million (312.5%) increase from theprevious fiscal year-end.

The components of the change of primary items were as follows:i. Interest-bearing debt
Interest-bearing debt totaled ¥8,028,586 million, for an increase of ¥5,854,861 million from the previous fiscal
year-end.

Please refer to page 56 “9. Interest-bearing debt” under “3. Condensed Interim Consolidated

Financial Statements (6) Notes to Condensed Interim Consolidated Financial Statements” for details.
・ Corporate bonds totaled ¥4,798,180 million, for a ¥4,006,261 million increase from the previous fiscal

year-end.

The increase in corporate bonds mainly reflects ¥2,590,208 million recognized for the

consolidation of Sprint on the acquisition date, totaling $9.0 billion (¥890,850 million) of straight corporate
bonds issued by Sprint, and ¥450,000 million of unsecured straight corporate bonds and ¥324,382 million offoreign currency denominated straight corporate bonds issued by SoftBank Corp. Another factor behind theincrease was that the yen had weakened against the U.S. dollar at the end of the third quarter compared tothe time of acquisition of Sprint and the time of SoftBank Corp.’s issuance of foreign currency denominatedstraight corporate bonds.

Meanwhile, Clearwire redeemed $3,263 million (¥328,507 million) of its bonds

before maturity.
・ Long-term borrowings totaled ¥2,214,091 million, for an increase of ¥1,703,235 million from the previous

fiscal year-end.

This was mainly due to the Company borrowing ¥1.98 trillion in September 2013 torefinance its bridge loan for the acquisition of Sprint and other existing borrowings and debts, while

21

SoftBank Corp. Consolidated Financial Report
For the nine-month period ended December 31, 2013concurrently repaying part of existing borrowings.
ii. Deferred tax liabilities
Deferred tax liabilities totaled ¥1,546,507 million, for an increase of ¥1,426,879 million from the previous
fiscal year-end.

This was mainly due to recognition of a temporary difference relating to FCC Licenses,

customer relationships, and trademarks in conjunction with the consolidation of Sprint.
(e) Equity(Millions of yen)

As of March 31, 2013
Equity attributable to ownersof the parent
Non-controlling interests
Total equity

ChangeAs of Dec. 31, 2013

1,612,756

1,986,529

373,773

317,672

896,844579,172

1,930,428

2,883,373

952,945

Equity totaled ¥2,883,373 million, for a ¥952,945 million (49.4%) increase from the previous fiscal year-end.
Of this amount, equity attributable to owners of the parent and non-controlling interests increased by ¥373,773
million (23.2%) and ¥579,172 million (182.3%), respectively.

The equity ratio for equity attributable toowners of the parent decreased by 10.2 percentage points from the previous fiscal year-end to 12.1%.

Despitethe increase in equity attributable to owners of the parent, the lower equity ratio for equity attributable to ownersof the parent primarily reflected an increase in the amount of assets and liabilities mainly in conjunction withthe consolidation of Sprint.

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

Item

As of March 31, 2013

As of Dec. 31, 2013

ChangeCommon stock

238,772

238,772-

Additional paid-in capital

436,704

405,030(31,674)Retained earnings

712,088

1,165,778

453,690

Treasury stock(22,834)(51,599)(28,765)

Accumulated othercomprehensive income

248,026

228,548(19,478)

Available-for-sale financial
assets

50,70013,286(37,414)

Cash flow hedges

114,158(22,934)(137,092)

Exchange differences ontranslating foreign
operations

83,168238,196

155,028

1,612,756

1,986,529

373,773

Total equity attributableto owners of the parent

22

SoftBank Corp. Consolidated Financial Report
For the nine-month period ended December 31, 2013

Equity attributable to owners of the parent totaled ¥1,986,529 million, for a ¥373,773 million (23.2%) increase
from the previous fiscal year-end.
i. Retained earnings totaled ¥1,165,778 million, for a ¥453,690 million increase from the previous fiscal
year-end.

This mainly reflected the recording of net income attributable to owners of the parent of¥488,231 million for the period, despite a decrease totaling ¥47,669 million due to the payment of theyear-end dividend for the fiscal year ended March 31, 2013 and the interim dividend for the fiscal year
ending March 31, 2014.
ii. Accumulated other comprehensive income totaled ¥228,548 million, for a ¥19,478 million decrease fromthe previous fiscal year-end.
・ Available-for-sale financial assets were ¥13,286 million, for a ¥37,414 million decrease from the previous

fiscal year-end.

At the previous fiscal year-end, the Company measured the fair value of its shares of

WILLCOM, Inc., which were classified as available-for-sale financial assets, and recognized the difference
between the fair value and the acquisition cost as accumulated other comprehensive income, net of tax.

In

conjunction with the consolidation of WILLCOM, Inc. in the second quarter, the entire amount of theaccumulated other comprehensive income recognized relating to these shares was derecognized andrecognized as income from remeasurement relating to business combination in the consolidated statements
of income.
・ Cash flow hedges were negative ¥22,934 million, for a ¥137,092 million decrease from the previous fiscal

year-end.

$17.0 billion was previously accounted for under hedge accounting out of a foreign currency

forward contract concluded in relation to the acquisition of Sprint. Then, accumulated other comprehensive
income from this $17.0 billion foreign currency forward contract was derecognized in the second quarter anddeducted from goodwill initially recognized from the consolidation of Sprint. Please refer to page 45“(Note 6) Basis adjustment” under “3. Condensed Interim Consolidated Financial Statements (6) Notes toCondensed Interim Consolidated Financial Statements 5. Business combinations (2) Sprint f. Fair values ofassets and liabilities, non-controlling interests and goodwill on the acquisition date” for details.
・ Exchange differences on translating foreign operations were ¥238,196 million, for a ¥155,028 million

increase from the previous fiscal year-end.

This was mainly because the yen had weakened against the

U.S. dollar at the end of the third quarter compared to the time of acquisition of Sprint.
(Non-controlling Interests)
Non-controlling interests totaled ¥896,844 million, for a ¥579,172 million (182.3%) increase from the previous
fiscal year-end, mainly in conjunction with consolidating Sprint, GungHo, and Supercell.

23SoftBank Corp. Consolidated Financial Report
For the nine-month period ended December 31, 2013b. Cash Flows
Cash flows during the period were as follows:
Cash and cash equivalents at the end of the third quarter totaled ¥2,046,636 million, for a ¥607,579 million
increase from the previous fiscal year-end.
(Millions of yen)

Nine-month Period
Ended Dec. 31, 2012
YoY

Nine-month Period
Ended Dec. 31, 2013
(the period)

Cash flows from operating activities

521,296497,657(23,639)

Cash flows from investing activities(767,639)(2,376,501)(1,608,862)

Cash flows from financing activities

284,118

2,447,322

2,163,204

62,814(498,007)(560,821)

Change(Reference)
Cash flows from operating activities- capital expenditure(Note 7)Note:
7. Outlays for purchase of property, plant and equipment and intangible assets(a) Cash Flows from Operating Activities
Net cash provided by operating activities totaled ¥497,657 million (compared with ¥521,296 million provided in
the same period of the previous fiscal year).

Out of this, Sprint’s net cash used by operating activities (for theperiod from July 11 to December 31, 2013) totaled ¥27,267 million.

The primary components were as follows:i. Net income totaled ¥526,122 million.
ii. The main items added to net income were ¥623,986 million in depreciation and amortization, ¥272,019
million in income taxes, and ¥147,918 million in finance cost, net.
iii. The main item deducted from net income was income from remeasurement relating to businesscombination of ¥253,886 million.

Please refer to page 39 “(1) GungHo Online Entertainment, Inc.” andpage 46 “(3) WILLCOM, Inc.” under “3. Condensed Interim Consolidated Financial Statements (6) Notes
to Condensed Interim Consolidated Financial Statements 5. Business combinations” for details.
iv. Interest paid was ¥225,388 million.

The increase of ¥173,682 million compared with the same period of

the previous fiscal year was mainly due to the impact of adding the interest expense of Sprint, as well as anincrease in interest expenses for bonds and borrowings at SoftBank Corp.
v. Income taxes paid was ¥267,029 million.

24

SoftBank Corp. Consolidated Financial Report
For the nine-month period ended December 31, 2013(b) Cash Flows from Investing Activities
Net cash used in investing activities was ¥2,376,501 million (compared with ¥767,639 million used in the same
period of the previous fiscal year).

The primary components were as follows:i. Decrease from acquisition of control over subsidiaries of ¥1,568,582 million was recorded, mainly due tothe consolidation of Sprint, GungHo, and Supercell.
(Reference: Total Invested Amount for Acquisition of Sprint)
The invested amount for the Sprint acquisition and the timing of payments is as follows:
Invested amount
Timing of payment
U.S. dollars

Millions of yen

Purchase of convertible
bonds(Note 8)
A$3.1 billion

249,333 Oct. 2012

Cash investment$18.5 billion

1,875,149 July 2013

B

Proceeds from settlement offoreign currency forward
contract for acquisition ofcontrol of subsidiaries(Note 9) C
Additional purchases ofshares(Note 10)D$500 million

Total E=A+B-C+D$22.1 billion-

310,104 49,535 Aug. - Sept. 2013
1,863,913

Cash and cash equivalents
held by Sprint at the time ofacquisition of control
F$4.4 billion
447,873
Notes:
8. Converted to Sprint shares on July 10, 2013.
9. Proceeds from the settlement of the foreign currency forward contract of $18.5 billion concluded inrelation to acquisition of Sprint.
10. From August 1 to September 16, 2013 the Company acquired approximately 2% of additional shares ofSprint after its consolidation on July 10, 2013. Since this was executed after acquiring control of
Sprint the relevant invested amount is recorded under cash flows from financing activities.
11. Of the amount recorded for decrease from acquisition of control over subsidiaries for the period, outlays
for the acquisition of Sprint amounted to ¥1,427,276 million. This is calculated by subtracting cash
and cash equivalents held by Sprint at the time of acquisition of control (F) from the $18.5 billion in
cash investment (B).
ii. Outlays for purchase of property, plant and equipment and intangible assets amounted to ¥995,664 million.
Out of this, Sprint’s outlays for purchase of property, plant and equipment and intangible assets (for theperiod from July 11 to December 31, 2013) amounted to ¥395,622 million.

25

SoftBank Corp. Consolidated Financial Report
For the nine-month period ended December 31, 2013(c) Cash Flows from Financing Activities
Net cash provided by financing activities was ¥2,447,322 million (compared with ¥284,118 million provided in
the same period of the previous fiscal year).

The primary components were as follows:(Items Increasing Cash Flows)i. Proceeds from long-term interest-bearing debt of ¥4,380,354 million mainly resulted from the following:
・ Proceeds from long-term borrowings of ¥2,378,670 million, mainly from borrowings of ¥1.98 trillion

executed by SoftBank Corp. in September 2013 in accordance with the refinancing of the Sprint acquisition
bridge loan and other existing borrowings and debts.
・ Proceeds from issuance of corporate bonds of ¥1,665,232 million.

This mainly consisted of totaling $9.0

billion (¥890,850 million) of straight corporate bonds issued by Sprint, and ¥450,000 million of unsecured
straight corporate bonds and ¥324,382 million of foreign currency denominated straight corporate bonds issued
by SoftBank Corp.
・ Proceeds from sale and leaseback of equipment newly acquired of ¥336,452 million.

(Items Decreasing Cash Flows)i. Repayment of long-term interest-bearing debt of ¥1,678,922 million mainly resulted from the following:・ Repayment of long-term debt of ¥971,600 million.

This was mainly due to the Company repaying part ofexisting borrowings in September 2013, in accordance with the refinancing of the Sprint acquisition bridge
loan and other existing borrowings and debts.
・ Redemption of corporate bonds of ¥483,528 million, mainly from Clearwire’s early redemption of $3,263

million (¥328,507 million) of Clearwire’s corporate bonds.
ii. Decrease in short-term interest-bearing debt, net resulted in an outlay of ¥101,431 million.
iii. Payment for purchase of subsidiaries' equity from non-controlling interests of ¥71,869 million.

This

mainly included the Company’s additional purchase of approximately 2% of Sprint shares from August 1 to
September 16, 2013, after its consolidation on July 10, 2013, which resulted in an outlay of ¥49,535 million,
as well as an outlay of ¥21,424 million for Yahoo Japan Corporation’s repurchase of its own shares.

26

SoftBank Corp. Consolidated Financial Report
For the nine-month period ended December 31, 2013

(3) Qualitative Information Regarding Forecast on the Consolidated Operation Results
The Company projects net sales of at least ¥6 trillion, EBITDA(Note 12) of at least ¥1.5 trillion, and operating incomeof at least ¥1 trillion under IFRSs in the fiscal year ending March 31, 2014 (“FY2013”). This operating income
includes gains of ¥253.9 billion in total resulting from the reevaluation of the existing equity interests held in
GungHo and WILLCOM, Inc. at fair value when both companies became subsidiaries.
For the fiscal year ending March 31, 2015 (“FY2014”) the Company projects net sales of ¥7 trillion, EBITDA of¥2 trillion, and operating income of ¥1 trillion.

Temporary gains including income from remeasurement relating

to business combination are not anticipated to occur.

In combination with continued steady trends in the Mobile

Communications segment, the operation results of the Sprint segment are forecast to show marked progress,
resulting in continued operating income growth (comparison with FY2013 operating income discounts theabovementioned temporary gains).
Forecast for fiscal years ending March 31, 2014 and 2015.
Fiscal year ending
March 31, 2014

Fiscal year ending
March 31, 2015

Net sales

at least ¥6 trillion¥7 trillion

EBITDA

at least ¥1.5 trillion¥2 trillion

at least ¥1 trillion(¥253.9 billion)¥1trillion(-)

Operating income(incl. temporary gains)Note:
12. EBITDA: net sales - cost of sales - selling, general and administrative expenses + depreciation andamortization

27

SoftBank Corp. Consolidated Financial Report
For the nine-month period ended December 31, 2013

2. Notes to Summary Information(1) Significant changes in scope of consolidation for the nine-month period ended December 31, 2013
Specified subsidiary (one company) newly consolidated in the nine-month period ended December 31, 2013
Sprint Communications, Inc.
On July 10, 2013, the Company capitalized Sprint Corporation (hereinafter “Sprint”) with $21.6 billion. In the above
process, Sprint Nextel Corporation merged with Starburst III, Inc., which used to be a subsidiary of the Company, withSprint Nextel Corporation being the surviving entity and changed its name to Sprint Communications, Inc.
Consequently, Sprint Communications, Inc., the surviving entity, was newly included in the scope of consolidation.
Starburst II, Inc., which used to own all the shares of Starburst III, Inc., succeeded Sprint’s business and changed its
name to Sprint Corporation.
As the amount of common stock of Sprint Communications, Inc. which was included in the scope of consolidation ismore than ten-hundreds of the common stock of SoftBank Corp., this is a change of a specified subsidiary with thechange in the scope of consolidation.
(2) Changes in Accounting Policies and Accounting Estimates(Changes in accounting estimates)
For the three-month period ended June 30, 2013, the Company changed its assumptions and estimates related to theacquisition of Sprint, which are used as material basis for the carrying amount of the convertible bonds issued by Sprint
Nextel Corporation and held by a subsidiary, Starburst II, Inc. The corporate bond was converted to the shares ofSprint shares in July 2013.
The details are described in “Note 12. Finance cost, net, (6) Notes to Condensed Interim Consolidated Financial
Statements, 3. Condensed Interim Consolidated Financial Statements.”

28

SoftBank Corp. Consolidated Financial Report
For the nine-month period ended December 31, 2013

3. Condensed Interim Consolidated Financial Statements(1) Condensed Interim Consolidated Statements of Financial Position(Millions of yen)

As ofApril 1, 2012
AssetsCurrent assets
Cash and cash equivalents
Trade and other receivables
Other financial assets
Inventories
Other current assets
Total current assets
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

As ofMarch 31, 2013

As ofDecember 31, 2013

(1,021,113)(786,902)(10,399)(55,683)(85,014)(1,959,111)(1,439,057)(936,307)(229,239)(54,268)(127,148)(2,786,019)

2,046,636
1,441,891
206,521234,209
199,796
4,129,053(1,377,185)(777,911)(340,323)(1,830,615)(927,399)(524,893)

3,557,490
1,511,301
6,226,415(208,526)(208,664)

313,566(318,599)(183,409)(85,490)(3,291,443)(5,250,554)(634,647)(175,390)(129,182)(4,430,790)(7,216,809)

364,450
155,476
206,407
12,335,105
16,464,158

29

SoftBank Corp. Consolidated Financial Report
For the nine-month period ended December 31, 2013

(Millions of yen)

As ofApril 1, 2012
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
Non-current liabilities
Interest-bearing debt
Other financial liabilities
Defined benefit liabilities
Provisions
Deferred tax liabilities
Other non-current liabilities
Total non-current liabilities
Total liabilities
EquityEquity attributable to owners of the parent
Common stock
Additional paid-in capital
Retained earnings
Treasury stock
Accumulated other comprehensive income
Total equity attributable to owners of theparentNon-controlling interests
Total equity
Total liabilities and equity

As ofMarch 31, 2013

As ofDecember 31, 2013

(926,671)(975,832)(1,206)(123,213)(1,456)(94,155)(2,122,533)

1,534,128)
972,669)
4,833)
182,050)
1,602)
142,634)
2,837,916)

1,191,511)
1,538,570)
4,868)
192,429)
106,484)
447,716)
3,481,578)(1,763,273)(37,170)(14,953)(20,643)(45,351)(79,585)(1,960,975)(4,083,508)

2,173,725)
38,654)
14,506)
21,765)
119,628)
80,187)2,448,465)
5,286,381)

8,028,586)
57,821)64,728)138,168)
1,546,507)
263,397)
10,099,207)
13,580,785)(213,798)(250,767)(405,584)(22,947)(45,433)

238,772)
436,704)
712,088)(22,834)
248,026)

238,772)
405,030)
1,165,778)(51,599)
228,548)(892,635)

1,612,756)

1,986,529)(274,411)(1,167,046)(5,250,554)

317,672)
1,930,428)
7,216,809)

896,844)2,883,373)
16,464,158)

30

SoftBank Corp. Consolidated Financial Report
For the nine-month period ended December 31, 2013

(2) Condensed Interim Consolidated Statements of Income and Other Comprehensive Income
For the nine-month period ended December 31
Condensed Interim Consolidated Statements of Income(Millions of yen)

Nine-month period ended
December 31, 2012
2,346,972)((1,166,395))
1,180,577)(550,833)

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

1,778)(

253,886)

631,522)(48,384)(2,812)580,326)(225,520)
354,806)((5,328)(924,228)(146,049)(19,962)(798,141)(272,019)
526,122)308,790)
46,016)354,806)

Earnings per share attributable to owners of the parent
Basic (yen)Diluted (yen)280.48276.3031

Nine-month period ended
December 31, 2013
(4,561,703)(2,650,642)(1,911,061)(1,235,391)(((

488,231)
37,891)
526,122)409.80409.04

SoftBank Corp. Consolidated Financial Report
For the nine-month period ended December 31, 2013

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

Nine-month period ended
December 31, 2012

Nine-month period ended
December 31, 2013

354,806)

526,122)(1)

17,174)(1)

17,174)(2,407)
37,133)(42,514)(136,892)

29,099)163,309)8,272)

18,387)72,097)2,290)

72,096)426,902)

19,464)
545,586)

380,517)
46,385)426,902)482,464)
63,122)545,586)

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, net of tax
Total comprehensive income
Total comprehensive income attributable to
Owners of the parent
Non-controlling interests

32SoftBank Corp. Consolidated Financial Report
For the nine-month period ended December 31, 2013

For the three-month period ended December 31
Condensed Interim Consolidated Statements of Income(Millions of yen)Three-month period ended Three-month period ended
December 31, 2012
December 31, 2013
842,328)
1,963,091)(448,127)(1,225,734)
394,201)
737,357)(193,586)(527,746)

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Income from remeasurement relating to businesscombination
Other operating loss
Operating income
Finance cost, net
Equity in income (loss) of associates
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)33

1,778)-

202,393)(11,007)(1,532)
189,854)(77,576)
112,278)(453)
209,158)(41,026)
23,742)
191,874)(94,625)
97,249)94,231)
18,047)112,278)

93,315)
3,934)
97,249)

85.22
84.27

78.36
78.08

SoftBank Corp. Consolidated Financial Report
For the nine-month period ended December 31, 2013

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

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, net of tax
Total comprehensive income

Three-month period ended
December 31, 2012
112,278)

Three-month period ended
December 31, 2013
97,249)(2)

17,185)(2)

17,185)2,878)
36,962)

4,693)
3,340)

37,630)220,717)

8,985)

11,492)86,455)86,453)
198,731)240,242)
257,427)354,676)

180,513)
18,218)
198,731)309,662)
45,014)354,676)

Total comprehensive income attributable to
Owners of the parent
Non-controlling interests

34

SoftBank Corp. Consolidated Financial Report
For the nine-month period ended December 31, 2013

(3) Condensed Interim Consolidated Statements of Changes in Equity
For the nine-month period ended December 31, 2012
(Millions of yen)
Equity attributable to owners of the parent

As of April 1, 2012
Comprehensive income
Net income
Other comprehensive
incomeTotal comprehensive
incomeTransactions with owners
and other transactions
Cash dividends
Transfer of accumulated
other comprehensive
income to retained
earnings
Issuance of new shares
Purchase and disposal oftreasury stock
Changes from businesscombination
Changes in interests in
subsidiaries
Changes in associates’interests in theirsubsidiaries
Decrease by exercise ofstock acquisition right
Share-based paymenttransactions
Other
Total transactions withowners and othertransactions
As of December 31, 2012

Commonstock
213,798

Additional
paid-in
capital250,767)

Retainedearnings
405,584

Treasurystock(22,947)

Accumulated
othercomprehensive
income45,433

Noncontrolling
Totalinterests
892,635)
274,411)

Total equity
1,167,046)--

308,790--308,790)

46,016)354,806)

-

-

-

-

71,72771,727)369)

72,096)--

308,790-

71,727

380,517)

46,385)426,902)--(66,045)--(66,045)(11,832)(77,877)

-

-

(1)

-

1

-

8,405

15,521)---

23,926)-23,926)

-

5)

-

73)

-

78)

-

78)

-

-

-

-

-

-

2,250)

2,250)

-

(303)

-

-

-

(303)

(14)

(317)

-

(51,223)---(51,223)-(51,223)-(7,395)---(7,395)-(7,395)

-

50)

-

-

-

50)

-

50)

-

-

-

-

-

-

(933)

(933)

8,405

(43,345)(66,046)73)

1(100,912)(10,529)(111,441)

222,203

207,422)648,328(22,874)

117,161

1,172,240)

310,267)

1,482,507)

35

-

-

SoftBank Corp. Consolidated Financial Report
For the nine-month period ended December 31, 2013

For the nine-month period ended December 31, 2013
(Millions of yen)
Equity attributable to owners of the parent

As of April 1, 2013
Comprehensive income
Net income
Other comprehensive
income (loss)
Total comprehensive
incomeTransactions withowners and othertransactions
Cash dividends
Transfer of accumulated
other comprehensive
loss to retained
earnings
Purchase and disposalof treasury stock
Changes from businesscombination
Acquisition of options
to convert tosubsidiaries’common stocks
Changes in interestsin subsidiaries
Share-based paymenttransactions
Other
Total transactions
with owners and othertransactions
As of December 31, 2013

Commonstock
238,772

Additional
paid-in
capital436,704)

Retainedearnings
712,088)

Treasurystock(22,834)

488,231)-

Accumulated
othercomprehensive
income248,026)

Total
1,612,756)

Noncontrollinginterests
317,672)

Total equity
1,930,428)-

488,231)

37,891)

526,122)

-

-

-

-

-

-

(5,767)(5,767)

25,231)

19,464)--

488,231)-(5,767)482,464)

63,122)545,586)--(47,669)--(47,669)(13,641)(61,310)--

13,711)-(13,711)

-

-

-

-

(13)

(583) (28,765)-(29,361)-(29,361)

-

-

-

-

-

-

568,326)

568,326)-(10,323)---(10,323)-(10,323)-(21,635)---(21,635)(46,087)(67,722)

-

297)

-

-

-

297)

6,428)

6,725)

-

-

-

-

-

-

1,024)

1,024)-(31,674)(34,541) (28,765)(13,711)(108,691)

516,050)

407,359)

238,772

405,030)

228,548)

1,986,529)

896,844)2,883,373)

1,165,778(51,599)36

SoftBank Corp. Consolidated Financial Report
For the nine-month period ended December 31, 2013

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

Nine-month period ended
December 31, 2012

Nine-month period ended
December 31, 2013

354,806)
244,339)
2,812)
47,651)

526,122)623,986)(19,962)
147,918)(1,778)(253,886)

225,520)(34,335)(9,964)

272,019)(84,517)(43,446)

Other(42,137)(184,391)

Subtotal

786,914)983,843)

Interest and dividends received
Interest paid
Income taxes paid
Net cash provided by operating activities

1,932)(51,706)(215,844)
521,296)

6,231)(225,388)(267,029)
497,657)(458,482)(314,114)
16,339)(995,664)(181,004)
172,929)(2,040)(1,568,582)-

310,104)(9,342)(767,639)(114,284)(2,376,501)

348,196)(101,431)

788,497)(575,230)

4,380,354)(1,678,922)(369)(71,869)(65,206)(12,512)(47,195)(13,533)(200,444)-

1,186)
284,118)(20,082)
2,447,322)

4,751)
42,526)
1,021,113)
1,063,639)

39,101)
607,579)
1,439,057)
2,046,636)

Cash flows from operating activities
Net income
Depreciation and amortization
Equity in loss (income) of associates
Finance cost, net
Income from remeasurement relating to businesscombination
Income taxes
Increase in trade and other receivables
Decrease in trade and other payables

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
Other
Net cash used in investing activities
Cash flows from financing activities
Increase (decrease) 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
Payments for preferred stocks, stock acquisition rights,
and long-term debt of subsidiaries
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 period
Cash and cash equivalents at the end of the period

37SoftBank Corp. Consolidated Financial Report
For the nine-month period ended December 31, 2013(5) Significant Doubt about Going-Concern Assumption
There are no applicable items for the nine-month period ended December 31, 2013.
(6) Notes to Condensed Interim Consolidated Financial Statements
1. Reporting entity
SoftBank Corp. is a corporation domiciled in Japan. These condensed interim consolidated financial statements
are composed of SoftBank Corp. and its subsidiaries (the “Company”). The Company engages in various
businesses in the information industry, with its base in the Mobile Communications segment, the Sprint segment,
the Fixed-Line Telecommunications segment, and the Internet segment. The Sprint segment was added to ourbusiness as a result of the following acquisition during the three-month period ended September 30, 2013.
On July 10, 2013, the Company acquired approximately 78% of the shares of Sprint Corporation (previously
Sprint Nextel Corporation) (hereinafter (“Sprint”)), and Sprint became a subsidiary of the Company. In addition,
the Company additionally acquired approximately 2% of Sprint shares from August 1 to September 16, 2013. As
a result, the Company’s ownership in the outstanding Sprint common stock became approximately 80% as ofDecember 31, 2013.
The details are described in “(2) Sprint” in “Note 5. Business combinations” and in “(1) Description of reportablesegment” in “Note 6. Segment information.”

2. Basis of preparation of condensed interim consolidated financial statements(1) Compliance with IFRSs and first-time adoption
These condensed interim consolidated financial statements of the Company have been prepared in accordancewith International Accounting Standard 34 “Interim Financial Reporting” pursuant to Article 93 of the Regulation
Concerning Terminology, Forms and Preparation Methods of Quarterly Consolidated Financial Statements(Cabinet Office Ordinance No. 64, 2007), as the Company meets the criteria of a “Specified company” defined
under Article 1-2 of the Regulation.
The Company has prepared the condensed interim consolidated financial statements in accordance with IFRSs
from the three-month period ended June 30, 2013, the first quarter of the year ending March 31, 2014. The dateof transition to IFRSs is April 1, 2012. The Company applied IFRS 1 “First-Time Adoption of International
Financial Reporting Standards” for the transition to IFRSs. The effect of the transition to IFRSs on the
Company’s financial position, results of operations, and the cash flows is provided in “Note 15. First-time
adoption of IFRSs.”(2) Basis of measurement
These condensed interim 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.
(3) Presentation currency and unit of currency
These condensed interim consolidated financial statements have been presented in Japanese yen, which is thecurrency of the primary economic environment of SoftBank Corp., and are rounded off to the nearest million yen.
(4) New standards and interpretations not yet adopted by the Company
The Company has not early adopted standards and interpretations (including IFRS 9 “Financial Instruments”)
that have not been enforced as of December 31, 2013, in the preparation of these condensed interim consolidated
financial statements. The Company is currently evaluating potential impacts that application of these will haveon the consolidated financial statements and it is not possible to estimate the amount of these impacts.

38

SoftBank Corp. Consolidated Financial Report
For the nine-month period ended December 31, 2013

3. Significant accounting policies
The significant accounting policies applied in these condensed interim consolidated financial statements are consistent
with those for the second quarter of the fiscal year ending March 31, 2014 (for the six-month period ended September
30, 2013).
In addition, as a result of the consolidation of Supercell Oy (“Supercell”), a mobile game company headquartered in
Finland, on October 31, 2013, game title of intangible asset was recognized. The game title is amortized using thestraight-line method over five years. The details of the acquisition are described in “(4) Supercell” in “Note 5.
Business combinations.”
The accounting policies adopted by the Company have been applied consistently to all periods presented in thesecondensed interim consolidated financial statements (including the consolidated statement of financial position at thedate of transition to IFRSs).

4. Significant judgments and estimates
In preparing condensed interim consolidated financial statements under IFRSs, management makes judgments,
estimates, and assumptions that affect the application of accounting policies and carrying amounts of assets, liabilities,
revenue, and expenses. These estimates and underlying assumptions are based on the management’s best judgments,
through their evaluation of various factors that were considered reasonable as of the period-end, based on historicalexperience and by 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.
Estimates and assumptions giving significant effects on the amounts recognized in the condensed interim
consolidated financial statements of the Company are consistent with those for the second quarter of the fiscal year
ending March 31, 2014 (for the six-month period ended September 30, 2013).

5. Business combinations
For the nine-month period ended December 31, 2013
(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 Online Entertainment, Inc. (“GungHo“) on April 1, 2013, with Heartis Inc. (the “Heartis”; percentage
of voting interest: 18.5%), which is the second 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., of which Masayoshi Son is a director and which is a Masayoshi
Son’s asset management company, defer the execution of pledges over the shares of GungHo held by Heartis,
Heartis has agreed, effective as of April 1, 2013, to the effect that at the shareholders meeting of GungHo,
Heartis will exercise the voting rights for all of the shares of GungHo it holds in accordance with Masayoshi
Son’s directions. Also, a subsidiary of the Company, SoftBank Mobile Corp., undertook the Tender Offerfrom April 1, 2013 to April 26, 2013 and acquired 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

39

SoftBank Corp. Consolidated Financial Report
For the nine-month period ended December 31, 2013

(percentage of voting interest: 58.50%) and GungHo Online Entertainment became a subsidiary of theCompany from an equity method associate.
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 “Income from remeasurement relating to businesscombination” in the condensed interim consolidated statements of income.

40

SoftBank Corp. Consolidated Financial Report
For the nine-month period ended December 31, 2013c. 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 assets
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 interests1

C

48,818A-(B-C)

146,032

2

Goodwill
Notes:

1. 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
2. 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.

d. Decrease from 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
Decrease in cash from the acquisition of control over thesubsidiary

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 ¥132,156 million and ¥29,839 million respectively, which are recorded in thecondensed interim consolidated statements of income for the nine-month period ended December 31, 2013.
In addition, the above net income includes amortization expenses, which are related to intangible assets recognizedat the acquisition date, and others.

41SoftBank Corp. Consolidated Financial Report
For the nine-month period ended December 31, 2013

(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 (the “Transaction” in this section (2)). After the completion of negotiations, theCompany 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 existing individual Sprint’s shareholders and $5 billion is 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 Corporation (“Clearwire”), a company providing high-speed wirelesscommunication 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 December 31, 2013.
(Structure after completion of the Transaction)

42

SoftBank Corp. Consolidated Financial Report
For the nine-month period ended December 31, 2013b. 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

Dan Hesse, Chief Executive Officer and Director

Business description

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$35,345 million (Fiscal year ended December 2012, 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 nine-month period ended December 31, 2013.

43

SoftBank Corp. Consolidated Financial Report
For the nine-month period ended December 31, 2013

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

Acquisition date（July 10, 2013）
Current assets
Cash and cash equivalents
Trade and other receivables1
Other financial assets
Inventories
Other current assets
Total current assets

447,873
327,211
111,764
105,318
42,655
1,034,821

Non-current assets
Property, plant and equipment2
Intangible assets2
Other financial assets
Other non-current assets
Total non-current assets
Total assets

1,291,364
5,301,283
23,93812,394
6,628,979
7,663,800

Current liabilities
Interest-bearing debt2
Trade and other payables
Income taxes payables
Provisions3
Other current liabilities
Total current liabilities

86,961
647,524
4,553
94,025286,160
1,119,223

Non-current liabilities
Interest-bearing debt2
Other financial liabilities
Defined benefit liabilities
Provisions3Deferred tax liabilities4
Other non-current liabilities
Total non-current liabilities
Total liabilities

2,668,163
6,677
65,763
148,7311,410,344
184,107
4,483,785
5,603,008

Net assets

B

2,060,792

Non-controlling interests5

C

465,973D

311,659282,205

Basis adjustment6
Goodwill7

A-(B-C)-D

Consideration transferred is allocated to acquired assets and assumed liabilities based on the fair value on theacquisition date. The above amounts, which are provisional fair values based on the best estimate at present, maychange for a year from the acquisition date when additional information related to facts and circumstances thatexisted as of the acquisition date, may be obtained.

44SoftBank Corp. Consolidated Financial Report
For the nine-month period ended December 31, 2013

For the three-month period ended December 31, 2013, provisional amounts of assets, liabilities and non-controllinginterests on the acquisition date were changed. Major changes are as follows: Intangible assets increased by¥25,660 million due to additional analysis performed by Sprint management related to the value assigned to certain
FCC Licenses8. Deferred tax liabilities decreased by ¥12,742 million primarily due to adjustments related to FCC
Licenses. Non-controlling interest increased by ¥28,267 million. Accordingly, goodwill decreased by ¥12,213
million.
The above amount is translated at the exchange rate (USD = JPY101.14) as of the acquisition date.
Notes:
1. Estimation of fair values of acquired receivables, contractual amounts receivables and amounts not expected to be collected
As for the fair value of ¥327,211 million of acquired receivables and other receivables (mainly sales receivables), the total
amount of contracts is ¥342,787 million and the estimate of the contractual cash flows not expected to be collected at theacquisition date is ¥15,576 million.
2. Property, plant and equipment, Intangible assets and Interest-bearing debt
The components are described in “Note 7. Property, plant and equipment”, “Note 8. Intangible assets” and “(1) Componentof interest-bearing debt” in “Note 9. Interest-bearing debt.”
3. Provisions
Provisions recognized by the business combination are mainly asset retirement obligations, expenses related to the closing of
the leased properties due to the shutdown of the Nextel Platform on June 30, 2013, expenses related to the closing of leased
properties such as offices and base stations and to the reduction of personnel, due to the acquisition of Clearwire, andexpenses related to access contracts for large capacity lines which will not be used.
4. 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.
5. 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 acquisition date in
the identifiable net assets of the acquiree at acquisition date
6. 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 the acquisition.
7. Goodwill
Goodwill reflects excess earning power expected from the future business development and the synergy with existing
businesses.
8. FCC Licenses
Licenses issued by the U.S. Federal Communications Commission for use of specified frequently bands.

45

SoftBank Corp. Consolidated Financial Report
For the nine-month period ended December 31, 2013

g. Decrease from acquisition of control over subsidiaries(Millions of yen)
Acquisition date（July 10, 2013）
Payment for the acquisition by cash

(1,875,149)

Cash and cash equivalents held by the acquiree at the time of acquisition ofcontrol

447,873

Decrease in cash from the acquisition of control over the subsidiary(1,427,276)

Proceeds from settlement of foreign currency forward contract for
acquisition of control of subsidiaries

310,104

Decrease in cash from the acquisition of control over the subsidiary, net(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 condensed interim consolidated statements of income for thenine-month period ended December 31, 2013, are ¥1,684,439 million and ¥157,947 million, respectively.
In addition, the above net loss includes amortization expenses, which are related to intangible assets recognized at
the acquisition date, and others.

(3) WILLCOM, Inc.
a. Overview of consolidation
The Company owns 100% of shares issued by WILLCOM, Inc. However, WILLCOM, Inc. was in the processof rehabilitation under the Corporate Reorganization Act and the Company did not have effective control over
WILLCOM, Inc. Therefore, WILLCOM, Inc. was not treated as a subsidiary.
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 the Company.
(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

46

104,070

SoftBank Corp. Consolidated Financial Report
For the nine-month period ended December 31, 2013

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 “Income from remeasurement relating to business combination” in the condensed interim
consolidated statements of income.

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

Acquisition date（July 1, 2013）
Current assets
Property, plant and equipment
Intangible assets
Other non-current assets

80,84346,02640,025
14,883

Total assets

181,777

Current liabilities
Non-current liabilities

83,95814,996

Total liabilities

98,954

Net assets

B82,823

Non-controlling interests1

C

222

A-(B-C)

21,4692

Goodwill
Notes:

1. Non-controlling interests is from WILLCOM OKINAWA, Inc. (proportionate interest held by the Company is 80%), a
subsidiary of WILLCOM Inc., and it is measured based on the proportionate interests after the acquisition in theidentifiable net assets of the acquiree at the acquisition date.
2. 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. Increase 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

14,043

Increase in cash from the acquisition of control over thesubsidiary

14,04347

SoftBank Corp. Consolidated Financial Report
For the nine-month period ended December 31, 2013

f. 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 condensed interim consolidated statements of income for thenine-month period ended December 31, 2013, are ¥ 82,293 million and ¥ 2,907 million, respectively.
In addition, the above net loss includes amortization expenses, which are related to intangible assets recognized at
the acquisition date, and others.

(4) Supercell Oy
a. Overview of consolidation
SoftBank Corp. and GungHo, a subsidiary of SoftBank Corp., communally established Kahon 3 Oy (”Kahon3”), a special purpose company in Finland, SoftBank Corp. indirectly investing $1,224 million (investing ratioof 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.

b. 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.

48

SoftBank Corp. Consolidated Financial Report
For the nine-month period ended December 31, 2013c. Summary of Supercell
Name

Supercell Oy

Address

Itämerenkatu 11-13 00180 Helsinki Finland

Name and title of representative

Ilkka Paananen, CEOBusiness description

Mobile/Social interactive entertainment

Common stock€2,500Date of foundation

May 14, 2010

Consolidated sales€78,358 thousands（the year ended December 2012, 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 transferred

140,397

Acquisition-related costs of ¥3,074 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 fromadditional paid-in capital as “Acquisition of options to convert to subsidiaries’ common stocks” in Condensed
interim consolidated statements of changes in equity”

49SoftBank Corp. Consolidated Financial Report
For the nine-month period ended December 31, 2013

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 assets
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 interests1

C

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

2

Goodwill

Consideration transferred is allocated to acquired assets and assumed liabilities based on a fair value on theacquisition date. The above amounts, which are provisional fair values based on the best estimate at present,
may change for a year from the acquisition date when additional information related to facts and circumstancesthat existed as of the acquisition date may be obtained.
Notes:
1. 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
2. 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.

g. Decrease from acquisition of control over subsidiaries(Millions of yen)

Acquisition date
（October 31,2013）(140,397)

Payment for the acquisition by cash
Cash and cash equivalents held by the acquiree at the time of acquisition ofcontrol
Decrease in cash from the acquisition of control over the subsidiary

2,495(137,902)

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 condensed interim consolidated statements of income for thenine-month period ended December 31, 2013, are ¥17,044 million and ¥123 million, respectively.
In addition, the above net loss includes amortization expenses, which are related to intangible assets recognized at
the acquisition date, and others.

50SoftBank Corp. Consolidated Financial Report
For the nine-month period ended December 31, 2013

6. 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.
The Sprint segment provides, through Sprint, mobile communication services, sales 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.
The Sprint segment was newly established from the three-month period ended September 30, 2013, by the
consolidation of Sprint in July 2013.
The Company previously had four segments, the Mobile Communications segments, the Broadband
Infrastructure segments, the Fixed-line Telecommunications segments, and the Internet Culture segments until
the year ended March 31, 2013. However, with the consolidation of eAccess Ltd. in January 2013, GungHo in
April 2013, and Sprint in July 2013, the Company changed its reportable segments from the three-month period
ended June 30, 2013 as the business size and region of the Company changed significantly.
For the three-month period ended June 30, 2013, the previous Fixed-line Telecommunications segment and theBroadband Infrastructure segment were integrated and included in the Domestic Fixed-line Telecommunications
Segment. Also the previous Mobile Communications segment was presented as the Domestic Mobile
Communications segment and the previous Internet Culture segment was presented as the Internet Segment.
Distribution business of SoftBank BB Corp. was previously included in “Others.” However, it is included in
the Domestic Mobile Communications segment, considering its stronger connection with mobile
communications.
For the three-month period ended September 30, 2013, the Company changed the names of certain segments.
The previous Domestic Mobile Communications was changed to the Mobile Communications. Also, theprevious Domestic Fixed-line Telecommunications was changed to the Fixed-line Telecommunications. Only
the names of the segments were changed; the definition of the segments remained the same.
Segment information for the nine-month period ended December 31, 2012, and for the three-month period ended
December 31, 2012, is presented in accordance with the reportable segment after the change.

51

SoftBank Corp. Consolidated Financial Report
For the nine-month period ended December 31, 2013

(2) Net sales and income of reportable segments
Income of reportable segments is based on income excluding “Income from remeasurement relating to businesscombination” and “Other operating income (loss)” from operating income as follows:
Segment income = (net sales – cost of sales – selling, general and administrative expenses) in each segment
Intersegment transactions are conducted under the same general business conditions as applied for externalcustomers.
The following is information about the Company’s net sales and income by reportable segments. The
Company also discloses “EBITDA (segment income before depreciation and amortization)” by reportablesegments.

52

SoftBank Corp. Consolidated Financial Report
For the nine-month period ended December 31, 2013

For the nine-month period ended December 31, 2012
(Millions of yen)
Reportable segments
MobileCommunications

SprintFixed-line
Telecommunications

Internet

Total

Others1

Reconciliations2

Consolidated
2,346,972

Net sales
Customers

1,707,056-

324,973

252,7902,284,819

62,153-

10,959-66,4652,354

79,77827,047(106,825)

-

Total

1,718,015-

391,438

255,1442,364,597

89,200(106,825)

2,346,972

EBITDA

610,286-

127,481

139,579

877,346

11,275(14,538)

874,083(191,019)-(38,043)(9,080)(238,142)(4,776)(1,421)(244,339)

419,267-

89,438130,499

639,204

6,499(15,959)

629,744

Intersegment

Depreciation andamortization
Segment income
Income from remeasurement relating to businesscombination
Other operating income(loss)

1,778
631,522

Operating income(48,384)

Finance cost, net(2,812)Equity in loss of associates
Income before income tax

580,326

For the nine-month period ended December 31, 2013
(Millions of yen)
Reportable segments
Fixed-line
Telecommunications
Internet

MobileCommunications

Sprint3

Customers

2,188,230

1,684,244

328,744

Intersegment

15,598

195

78,6812,203,828

1,684,439

790,379

228,424(275,800)
514,579

Reconciliations 2

Consolidated

Total

Others 1

295,932

4,497,150

64,553-4,561,703

2,044

96,51828,840(125,358)-

407,425

297,976

4,593,668

93,393(125,358)

4,561,703

132,807

153,227

1,304,837

11,306(16,487)

1,299,656(286,602)(45,129)(10,139)(617,670)(5,278)(1,038)(623,986)(58,178)

87,678143,088687,167

6,028(17,525)675,670

Net sales

Total
EBITDA
Depreciation andamortization
Segment income (loss)
Income fromremeasurement relating
to business combination

253,886

Other operating loss

(5,328)Operating income

924,228

Finance cost, net(146,049)

Equity in income ofassociates

19,962

Income before income tax

798,141

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

53

SoftBank Corp. Consolidated Financial Report
For the nine-month period ended December 31, 2013

For the three-month period ended December 31, 2012
(Millions of yen)
Reportable segments
MobileCommunications

SprintFixed-line
Telecommunications

Internet

Total

Others1

Reconciliations2

Consolidated

Net sales
Customers

626,067-

106,030

91,448

823,545

18,783-842,328

Intersegment

3,985

-

23,344635

27,9649,136(37,100)-

Total

630,052-

129,374

92,083

851,509

27,919(37,100)

842,328

EBITDA
Depreciation andamortization

197,094-

42,38752,220291,701

2,317(7,708)286,310(67,778)-(12,798)(2,992)(83,568)(1,643)(484)(85,695)

Segment income

129,316-

29,58949,228208,133

674(8,192)200,615

Income fromremeasurement relating
to business combination
Other operating income(loss)

1,778-

Operating income

202,393

Finance cost, net(11,007)

Equity in loss of associates(1,532)

Income before income tax

189,854

For the three-month period ended December 31, 2013
(Millions of yen)
Reportable segments
MobileCommunications
Customers
Intersegment

SprintFixed-line
Telecommunications

Internet

Total

810,930

923,386

110,076

100,772

1,945,164

17,927-

1,963,091

6,371

112

26,980914

34,377

10,693(45,070)-

817,301

923,498

137,056

101,686

1,979,541

28,620(45,070)

1,963,091

43,96452,205487,939

1,875(6,156)483,658

Others1

Reconciliations2

Consolidated

Net sales

Total
EBITDA

275,233

116,537

Depreciation andamortization(100,205)(152,411)(15,402)(3,700)(271,718)(1,942)(387)(274,047)

Segment income (loss)

175,028(35,874)

28,562

48,505216,221(67)(6,543)

209,611

Income fromremeasurement relating
to business combination-

Other operating loss

(453)

Operating income

209,158

Finance cost, net
Equity in income ofassociates(41,026)

Income before income tax

191,874

23,742

Notes:
1. “Others” includes Fukuoka SoftBank HAWKS-related business.
2. “Reconciliations” includes an elimination of intersegment transactions and the corporate general expenses unallocated to eachreportable segment.

54

SoftBank Corp. Consolidated Financial Report
For the nine-month period ended December 31, 2013

7. 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
Land
Construction in progress
Other
Total

As of
April 1, 2012
110,811
1,039,699
72,53691,94562,194
1,377,185

As ofMarch 31, 2013
118,284
1,412,580
73,930153,266
72,555
1,830,615

As ofDecember 31, 2013
260,858
2,720,046
93,077349,988
133,5213,557,490

The components of the carrying amounts of property, plant and equipment recognized as a result of the consolidationof Sprint in July 2013 are as follows. The details of the acquisition are described in “(2) Sprint” in “Note 5.
Business combinations.”(Millions of yen)

Buildings and structures
Telecommunications equipment
Land
Construction in progress
Other
Total

Acquisition date（July 10, 2013）
140,270794,524
18,362298,928
39,2801,291,364

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

As ofApril 1, 2012
Intangible assets with finite useful lives
Software
Customer relationships
Favorable lease contracts
Game titles
Trademarks
Other
Intangible assets with indefinite useful lives
FCC Licenses
Trademarks
Total

As of
March 31, 2013

As ofDecember 31, 2013

310,755
201
29,367411,285
83,876
178
29,554

627,982
727,860
147,521
181,937
54,171
79,113

340,323

524,893

3,782,341
625,490
6,226,415

As a result of consolidation of eAccess Ltd. in January 2013, the Company recognized customer relationships
amounting to ¥84,684 million. The details of the acquisition are described in “(9) Notes to the differences in thescope of consolidation” in “Note 15. First-time adoption of IFRSs.”
As a result of consolidation of GungHo in April 2013, the Company recognized game titles amounting to ¥77,796
million. The details of the acquisition are described in “(1) GungHo Online Entertainment, Inc.” in “Note 5.
Business combinations.”

55

SoftBank Corp. Consolidated Financial Report
For the nine-month period ended December 31, 2013

The components of the carrying amounts of intangible assets recognized as a result of the consolidation of Sprint inJuly 2013 are as follows. The details of the acquisition are described in “(2) Sprint” in “Note 5. Businesscombinations.”(Millions of yen)

Acquisition date（July 10, 2013）
Intangible assets with finite useful lives
Software
Customer relationships
Favorable lease contracts
Trademarks
Other
Intangible assets with indefinite useful lives
FCC Licenses
Trademarks
Total

138,330
700,192
148,979
52,59347,9293,612,994
600,266
5,301,283

As a result of the consolidation of WILLCOM, Inc. in July 2013, the Company recognized customer relationships
amounting to ¥25,004 million. The details of the acquisition are described in “(3) WILLCOM, Inc.” in “Note 5.
Business Combination.”
As a result of consolidation of Supercell Oy in October 2013, the Company recognized game titles amounting to¥119,099 million. The details of the acquisition are described in “(4) Supercell Oy” in “Note 5. Businesscombinations.”

9. Interest-bearing debt
(1) Components of interest-bearing debt
The components of “Interest-bearing debt” in the condensed interim consolidated statements of financial position
are as follows:(Millions of yen)

As ofApril 1, 2012
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 installment payables
Total
Non-current
Long-term borrowings
Corporate bonds
Lease obligations
Preferred securities
Installment payables
Total

As of
March 31, 2013

As ofDecember 31, 2013

114,625
496,073
142,686
157,302
15,985926,671458,313631,232
204,837
192,658
47,0881,534,128

332,81332,000368,317160,858
249,659
47,864
1,191,511

619,517458,520431,722
195,920
57,594
1,763,273

510,856
791,919564,077
197,468
109,405
2,173,725

2,214,091
4,798,180
721,195
198,734
96,386
8,028,586

56

SoftBank Corp. Consolidated Financial Report
For the nine-month period ended December 31, 2013

Notes:
1. SoftBank Corp. has entered into a loan agreement (the “permanent loan”) with a maximum total amount of borrowing at¥1,980 billion with the financial institutions on September 13, 2013 to refinance the bridge loan for the consolidation of
Sprint, executing borrowing on September 27, 2013 and on September 30, 2013.
The summary of the permanent loan is as follows.
Summary of the permanent loan
Borrower

SoftBank Corp.

Lenders

Mizuho Bank, Ltd.
Sumitomo Mitsui Banking Corporation
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
Deutsche Bank AG
Crédit Agricole CIB
and others in total 19 institutions

Date of contract

September 13, 2013

Maximum total amount ofborrowing and maturity

Total amount of borrowing limit :¥1.98 trillion（Breakdown）
Facility A： ¥1.1 trillion (Maturity: September 13, 2018)
Facility B： ¥880 billion (Maturity: September 14, 2020)

Loan drawdown amount anddate¥1.85 trillion on September 27, 2013¥130 billion on September 30, 2013

Primary use of loan proceeds

Repayment of bridge loan for Sprint consolidation
Repayment of some existing borrowings at SoftBank Corp.
Repayment of some existing debts at eAccess Ltd.

Collateral

Not applicable

Guarantors

SoftBank Mobile Corp. and SoftBank Telecom Corp.

Financial covenants

Following are the financial covenants for the permanent loan:(a) The amount of SoftBank Corp.'s net assets at the end of the year must not fall
below 75% of SoftBank Corp.'s net assets at the end of the previous year.
(b) The consolidated balance sheets of SoftBank Corp. and BB Mobile Corp. at
the end of the year must not show a net capital deficiency. At the end of theyear, balance sheets of SoftBank Mobile Corp., SoftBank BB Corp. and
SoftBank Telecom Corp. must not show a net capital deficiency.
(c) In the SoftBank Corp.'s consolidated financial statement, operating income(loss) or net income or 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 respective certain amounts or numbers at the endof each annual reporting period and at the end of the second quarter.
1. Adjusted net interest-bearing debts:
Amounts deducting cash and cash equivalents from interest-bearing debts inthe consolidated statement of financial position. Certain adjustments are
made such as excluding certain listed subsidiaries such as Sprint from thesubject.
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.

57

SoftBank Corp. Consolidated Financial Report
For the nine-month period ended December 31, 2013

Notes:
2. The components of interest-bearing debt recognized as a result of the consolidation of Sprint in July 2013 are in the tablebelow. The details of the acquisition are described in “(2) Sprint” in “Note 5. Business combinations.”(Millions of yen)
Acquisition date(July 10, 2013)

Current
Current portion of long-term borrowings
Current portion of corporate bonds
Current portion of lease obligations
Total

13,38063,317
10,26486,961

Non-current
Long-term borrowings
Corporate bonds
Lease obligations
Total

34,8542,590,208
43,1012,668,163

Notes:
3. 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 ($20.1 billion) of notes issued by Sprint are provided with the right to require Sprint to repurchase thenotes if there is a change of control and if there is a decline, to a certain extent, in ratings of the applicable notes by the
Rating Services. Also, holders of the Clearwire bond ($300 million) are provided with the right to require the repurchaseof 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 indebtedness* to EBITDA (as defined) should notexceed a threshold level. Exceeding the ratio could result in the maturities being accelerated. The limit for the ratio was
6.25 to 1.0 as of December 31, 2013.
*Total indebtedness: the sum of Sprint’s outstanding debt (excluding trade payable) and guarantee of indebtedness, withcertain adjustments such as excluding amounts agreed based on contracts with lenders.
On September 11, 2013, Sprint issued $2.25 billion aggregate principal amount of 7.250% Notes due 2021 and $4.25
billion aggregate principal amount of 7.875% Notes due 2023. After giving effect to the above, there was a risk Sprint
would have exceeded this threshold by a significant level at September 30, 2013. Accordingly, Sprint obtained a limited
waiver from each of the lenders under the credit facilities, which enabled compliance with this financial covenant until
December 31, 2013. However, as a requirement under the waivers, Sprint had to maintain a segregated reserve accountof $3.5 billion until the earlier of the time a certain amount of existing Clearwire indebtedness is prepaid, redeemed orotherwise retired, or December 31, 2013 at which time the waivers expired. As a certain amount of the Clearwire
indebtedness was repaid during the three month period ended December 31, 2013, the balance of restricted cash was
reduced to zero as of December 31, 2013.

58

SoftBank Corp. Consolidated Financial Report
For the nine-month period ended December 31, 2013

(2) Components of increase (decrease) in short-term interest-bearing debt
The components of “Increase (decrease) in short-term interest-bearing debt, net” in the condensed interim
consolidated statements of cash flows are as follows:（Millions of yen）

Nine-month period ended Nine-month period ended
December 31, 2012
December 31, 2013
348,196(133,431)
32,000348,196(101,431)

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

Note :The Company borrowed a permanent loan in September 2013 and refinanced the bridge loan which was made for the consolidationof Sprint. The increase and the decrease in short-term borrowings for the nine-month period ended December 31, 2013 include
the increase of borrowings of ¥1,034.9 billion on July 10, 2013, from the bridge loan and the decrease of borrowings by therepayment of the bridge loan in the amount of ¥1,284.9 billion (including the amount of repayment of ¥250 billion on December 21,2012).

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

Nine-month period ended Nine-month period ended
December 31, 2012
December 31, 2013
390,435
2,378,670
Proceeds from long-term borrowings
110,000
1,665,232
Proceeds from issuance of corporate bonds1
288,062
336,452
Proceeds from sale and leaseback of newly acquired equipment
Total
788,497
4,380,354
Notes:
1. Corporate bonds issued for the nine-month period ended December 31, 2013 are as follows:

Company name / Name of bond
SoftBank Corp.
USD-denominated Senior Notes
due year 2020

Date of issuanceTotal amountof issuanceInterest
rate

April 23, 2013

$2,485 million¥244,176 million 2

4.50%
3.29% 3

April 15, 2020

Date of maturity

Euro-denominated Senior Notes
due year 2020

April 23, 2013€625 million¥80,206 million 2

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%

Sept. 15, 2021

7.88%

Sept. 15, 2023

7.13%

June 15, 2024

Sprint Corporation4
7.25% Notes due 2021

Sept. 11, 20137.875% Notes due 2023

Sept. 11, 20137.125% Notes due 2024

Dec. 12, 2013

$2,250 million¥220,950 million$4,250 million¥417,350 million$2,500 million¥ 252,550 million

59

SoftBank Corp. Consolidated Financial Report
For the nine-month period ended December 31, 2013

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.

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

Nine-month period ended
December 31, 2012
(327,176)(95,000)

Repayment of long-term borrowings
Redemption of corporate bonds1
Payment of lease obligations
Payment of installment payables
Total(140,423)(12,631)(575,230)

Nine-month period ended
December 31, 2013
(971,600)(483,528)(180,032)(43,762)(1,678,922)

Notes:
1. Major corporate bonds redeemed for the nine-month period ended December 31, 2013 are as follows:

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

12% Senior Secured Notes due
2015

Nov. 24, 2009

$2,763 million¥277,997 million

12.00%

Sept. 11, 2013 toDec. 1, 2013

12% Second-Priority Secured
Notes due 2017

Dec. 9, 2010

$500 million¥50,510 million

12.00%

Oct. 30, 2013
Dec. 1, 2013

Company name /Name of bond
SoftBank Corp.
31st Unsecured Straight Corporate
Bond
33rd Unsecured Straight Corporate
Bond
Clearwire Communications LLC2

Notes:
2. These corporate bonds were redeemed after the acquisition of Sprint.

60

Clearwire Communications LLC is a subsidiary of Sprint.

SoftBank Corp. Consolidated Financial Report
For the nine-month period ended December 31, 2013

10. 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

U.S.dollars

As ofApril 1, 2012
82.19

As of
March 31, 2013
94.05

（yen）
As of
December 31, 2013
105.39(2) Average rate for the quarter
For the nine-month period ended December 31, 2012

U.S.dollars

Three-month period ended
June 30, 2012

Three-month period ended
September 30, 2012

Three-month period ended
December 31, 2012

80.40

78.42

81.49

Three-month period ended
June 30, 2013

Three-month period ended
September 30, 2013

Three-month period ended
December 31, 2012

97.94

98.20

101.02For the nine-month ended December 31, 2013

U.S.dollars

11. Equity(1) Additional paid-in capital
For the nine-month period ended December 31, 2012
Alibaba Group Holding Limited, an associate accounted for using the equity method, acquired the shares of
Alibaba.com Limited, a subsidiary of Alibaba Group Holding Limited, through its takeover bid in June 2012, andprivatized Alibaba.com Limited. The Company’s additional paid-in capital decreased by ¥51,208 million as
Alibaba Group Holding Limited treated this as a change in the interests in a controlled subsidiary, decreasing its
additional paid-in capital.

For the nine-month period ended December 31, 2013
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 Additional paid-in capital as“Acquisition of options to convert to subsidiaries’ common stocks.” The details are described in “(4) Supercell”
in “Note 5. Business combinations.”

61SoftBank Corp. Consolidated Financial Report
For the nine-month period ended December 31, 2013

(2) Accumulated other comprehensive income
The components of accumulated other comprehensive income are as follows:(Millions of yen)

As ofApril 1, 2012

As ofMarch 31, 2013

As ofDecember 31, 2013

Available-for-sale financial assets

46,42750,70013,286

Cash flow hedges*
Exchange differences on translating
foreign operations(994)

114,158(22,934)-

83,168238,196

45,433

248,026

228,548

Total

Note:
In connection with the consolidation of Sprint, during the nine-month period ended December 31, 2013, accumulated othercomprehensive income, generated from the hedging instrument designated as a cash flow hedge, is derecognized in order todeduct the amount from the initial amount of goodwill which was recognized by the consolidation. The details are describedin “(2) Sprint” in “Note 5. Business combinations.”

12. Finance cost, net
The components of finance income and costs are as follows:(Millions of yen)

Nine-month period ended
December 31, 2012
1,525)(39,567)2,616)
2,464)
293)(11,061)(4,654)(48,384)

Interest income1
Interest expense
Derivative gain (loss) 1,2,3
Gain on sales of securities
Gain on sales of associates’ stocks
Impairment loss on equity method associates4
Other
Total

Nine-month period ended
December 31, 2013
20,044)(186,632)(15,057)
11,565)26,701)(2,670)(146,049)

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 it is classified asembedded derivatives and were recorded in “Other financial assets” in the condensed interim consolidated statements offinancial position. As the Company exercised the relevant stock acquisition right and the Company derecognized thederivatives, a derivative loss of ¥16,356 million was recorded during the nine-month period ended December 31, 2013.
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 statement 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 nine-month period
ended December 31, 2013, the Company recognized interest income of ¥16,219 million. There was an increase of interest
income of ¥15,568 million from the reflection of this change in the expected remaining term of the bond.

62

SoftBank Corp. Consolidated Financial Report
For the nine-month period ended December 31, 2013

2. Of the foreign currency forward contract totaling $22.0 billion which is 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 thenine-month period ended December 31, 2013.
Hedge accounting was applied to $17.0 billion as cash flow hedge. Fair value of ¥311,659 million of hedge instrumentson the acquisition date was deducted from the initial amount of goodwill which was recognized upon the acquisition.
3. Derivatives associated with the transactions for the acquisition of Sprint are as follows. Derivative financial assets areincluded in “Other financial assets” in the condensed interim consolidated statements of financial position.

Derivatives to which hedge accounting is applied（Millions of yen）
As of

As of

April 1, 2012
Contract amounts(More than one
year)

As of

March 31, 2013
Contract amounts(More than one
year)

Fair value

December 31, 2013

Fair value

Contract amounts(More than one
year)

189,357--

189,357--

Fair value

Foreign exchange contracts
To buyU.S. dollars
Total

-

-

1,411,990
(-)

-

-

1,411,990(-)

Derivatives to which hedge accounting is not applied（Millions of yen）
As of

As of

As of

April 1, 2012

March 31, 2013

December 31, 2013

Contract amounts(More than one
year)

Contract amounts(More than one
year)

Fair value

Fair value

Contract amounts(More than one
year)

15,706--

15,706--

Fair value

Embedded derivatives
Stock acquisition rights
Total

-

-

291,555(291,555)--

291,555(291,555)

4. The Company recorded an impairment loss of ¥11,061 million for the nine-month period ended December 31, 2012 as therecoverable amount was less than its carrying amount with regard to the equity method associate. The recoverable
amount is the fair value less costs of disposal.

63

SoftBank Corp. Consolidated Financial Report
For the nine-month period ended December 31, 2013

13. Supplemental information to the condensed interim 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 condensed interim
consolidated statements of financial 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 statement of financial position.
The cash outflows from the purchase of the equipment from vendors are included in “Purchase of property,
plant and equipment and intangible assets" under cash flows from investing activities, and the cash inflows
from the sale of the equipment to lease companies are included in “Proceeds from long-term interest-bearingdebt" under cash flows from financing activities.
(3) Payments for preferred stocks, stock acquisition rights, and long-term debt of subsidiaries
For the nine-month period ended December 31, 2012
In April 2006, BB Mobile Corp. issued Class 1 preferred stock-series 1 and stock acquisition rights to
Vodafone International Holdings B.V. and obtained a subordinated loan from Vodafone Overseas Finance
Limited as a series of financing transactions for the Company’s acquisition of Vodafone K.K. (currently
SoftBank Mobile Corp.). In November 2006, refinancing of the funds for the acquisition was conducted, and
SoftBank Mobile Corp. assumed BB Mobile Corp’s subordinated loan.
In December 2010, the Company acquired all aforementioned Class 1 preferred stock-series 1 and stockacquisition rights issued by BB Mobile Corp. to Vodafone International Holdings B.V., and all principal
amounts and accrued interest of a long-term loan receivable from SoftBank Mobile Corp. held by Vodafone
Overseas Finance Limited for a total amount of ¥412,500 million. Of the total amount, ¥212,500 million andthe remaining amount of ¥200,000 million with expenses associated with the acquisition were paid in
December 2010 and April 2012, respectively.
(4) Proceeds from the settlement of foreign currency forward contracts for consolidation of control of subsidiaries
For the nine-month period ended December 31, 2013
The proceeds are from the settlement of a foreign currency forward contract of $18.5 billion with regard toconsolidation of Sprint.

64

SoftBank Corp. Consolidated Financial Report
For the nine-month period ended December 31, 2013

14. Significant subsequent events
For the nine-month period ended December 31, 2013
Consolidation of Brightstar Corp.
(1) Overview of consolidation
The Company completed the acquisition (the “Transaction”) of all common and preferred stocks of Brightstar
Corp. (“Brightstar”), a mobile device distributor in the United States, and the establishment of the organization
for 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. (the “U.S. subsidiary”) that owns 100% of Brightstar.
In the Transaction, SoftBank Corp. invested a total of $1.26 billion (¥128.5 billion1) into the U.S. subsidiary.
SoftBank Corp., in exchange for $400 million of the investment, received newly-issued common stocks of the
U.S. subsidiary (refer to (i) in the structure diagram), and in exchange for the remaining $860 million of
SoftBank Corp.'s investment, SoftBank Corp. received newly-issued non-voting preferred stocks of the U.S.
subsidiary that have an aggregate liquidation preference of $860 million, and a warrant that provides SoftBank
Corp. with the rights to acquire a number of common stocks of the same subsidiary that would raise SoftBank
Corp.'s ownership of the common stocks of the subsidiary to approximately 70%, for de minimis value, over
five years (the “Warrant”) (refer to (ii) in the structure diagram). The U.S. subsidiary acquired all common
and preferred stocks (including payment of accrued dividends) of Brightstar from existing shareholders forconsideration of $1.11 billion (¥113.2 billion1) and common stocks of such U.S. subsidiary representing
approximate 43% of the common shares issued.
As a result of the Transaction, SoftBank Corp. owns approximately 57% of the voting rights and commonshares of the U.S. subsidiary that owns 100% of Brightstar, and Mr. Marcelo Claure, Chairman and CEO of
Brightstar, owns approximately 43%. Accordingly, Brightstar became a subsidiary of the Company.
The Company will use $1.11 billion out of the total investment of $1.26 billion to complete the Brightstar sharepurchases, and the remaining $0.15 billion of SoftBank Corp.'s investment will be contributed to Brightstar inorder to fund, among others, ongoing corporate activities.
SoftBank Corp. plans to ratably exercise the Warrant to increase its ownership in the U.S. subsidiary to obtainapproximately 70% of the voting power, and common stock, over the five year vest period.
The Company has acquired a part of the preferred stocks of Brightstar for $660 million from existing
shareholders by December 31, 2013. The preferred stocks are non-voting preferred stocks convertible tocommon stocks with no limitation of the condition for the conversion. When the Company converts all of its
preferred stocks into common stocks, the Company’s voting ratio will be approximately 44%, and the Company
will have significant influence over Brighstar. Therefore, Brightstar is an associate of the Company as ofDecember 31, 2013.
Note: Converted at USD = JPY102

65

SoftBank Corp. Consolidated Financial Report
For the nine-month period ended December 31, 2013

(Structure after completion of consolidation of Brightstar)(2) Reasons for the Transaction
Brightstar is one of the world’s largest specialized wireless distributor 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 provides services in over 125 countries and has a local presence in over 50 countries.
SoftBank Corp. acquired Sprint in July 2013, expanding its business operations from Japan to the U.S. with
Brightstar becoming a subsidiary, SoftBank Corp. aims to strengthen its purchasing scale for mobile devices andfurther increase competitiveness both in Japan and the U.S.

(3) Summary of Brightstar

Name

Brightstar Corp.

Address

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

Name and title of representative

Marcelo Claure, Chairman and Chief Executive Officer

Business description

Mobile device distribution

Common stock$2,000Date of foundation

September 23, 1997

Consolidated sales$6,312,914 thousands（the year ended December 2012, US GAAP）

66

SoftBank Corp. Consolidated Financial Report
For the nine-month period ended December 31, 2013

(4) Number of shares to be acquired, consideration transferred and state of share ownership

Number of shares held as ofDecember 31, 2013
Number of shares to be acquired
after January, 2014

Preferred stock: 16,555,786 shares(number of voting rights: 0)(voting rights holding ratio: 0%)
Common stock: 18,322,308 shares
Preferred stock:2,993,828 shares

Payment by cash

USD 1.11 billion

In addition to the above cash consideration amount, the U.S. subsidiaryissued a number of common stocks representing approximately 43% (ratio
Consideration transferredof the issued common stocks to the total outstanding common stocks after
the acquisition of Brightstar through the U.S. subsidiary) as considerationtransferred for the acquisition of Brightstar’s stocks.
Acquisition-related costs: approximately ¥1.3 billion*
Common stock: 18,322,308 shares

Number of shares held after thePreferred stock: 19,549,614 sharescompletion of the Transaction(number of voting rights: 18,322,308)(voting rights holding ratio: 100 %)Note: Acquisition-related costs will be included in “Selling, general and administrative expenses.”(5) Acquisition date
January 30, 2014
(6) Fair values of assets and liabilities, non-controlling interests and goodwill on the acquisition date
The valuations necessary to assess the fair value of the assets acquired and liabiiltes assumed as of acquisition
date are not yet complete.

67SoftBank Corp. Consolidated Financial Report
For the nine-month period ended December 31, 2013

15. First-time adoption of IFRSs(1) Transition to IFRSs financial reporting
The Company first prepared condensed interim consolidated financial statements in accordance with IFRSs from thethree-month period ended June 30, 2013, which is the first quarter of the fiscal year ending March 31, 2014.
The latest consolidated financial statements prepared in accordance with JGAAP are for the year ended March 31,
2013. The date of transition to IFRSs is April 1, 2012.
IFRS 1, in principle, requires first-time adopters to apply IFRSs retrospectively.
However, as exceptions, the retrospective application of some aspects of IFRSs is prohibited, and they shall beapplied prospectively from the date of transition to IFRSs. The following exceptions are applicable to theCompany:a. Accounting estimates
With regard to accounting estimates used for consolidated financial statements in accordance with IFRSs, newinformation received afterward is not reflected for the estimates used under IFRSs to be consistent withestimates used when the financial statements under JGAAP were prepared.
b. Non-controlling interests
The Company applies the following requirements of IFRS 10 “Consolidated Financial Statements”
prospectively from the date of transition to IFRSs:･ the requirement that total comprehensive income is 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; and･ the requirements for accounting for changes in a subsidiary that do not result in a loss of control.
IFRSs also grant first-time adopters to voluntarily elect to use exemptions from some requirements of IFRSs.
Company applied the following exemptions:Thea. Business combinations
The Company has elected not to apply IFRS 3 “Business Combinations,” retrospectively to businesscombinations that occurred before the date of transition to IFRSs.
b. Translation differences for foreign operations
The Company has transferred all cumulative translation differences from other comprehensive income toretained earnings on the date of transition to IFRSs.
c. Share-based payments
The Company does not apply IFRS 2 “Share-based Payment” to a portion of stock options that were vested
before the date of transition to IFRSs.
d. Compound instruments
The Company does not apply IAS 32 “Financial Instruments: Presentation” to the compound instruments withno outstanding liability balance at the date of transition to IFRSs.

68

SoftBank Corp. Consolidated Financial Report
For the nine-month period ended December 31, 2013

The Company has made necessary adjustments to the consolidated financial statements prepared in accordance with
JGAAP that had already been disclosed, in the course of the preparation of the consolidated financial statements inaccordance with IFRSs.
Reconciliations required to be disclosed under the first-time adoption of IFRSs are as follows:
Items that do not affect retained earnings and comprehensive income are included in “Reclassification” of thereconciliation. Differences in the scope of consolidation under IFRSs from JGAAP are included in “Differences inthe scope of consolidation.” Items that affect retained earnings or comprehensive income are included in“Differences in recognition and measurement.”
The amounts presented in the consolidated financial statements prepared in accordance with JGAAP for the years
ended on or before March 31, 2013, were rounded down to the nearest million yen. As the amounts presented in
the condensed interim consolidated financial statements prepared in accordance with IFRSs from the three-month
period ended June 30, 2013, are rounded off to the nearest million yen, the amounts under JGAAP presented in thereconciliations are also rounded off to the nearest million yen.

69

SoftBank Corp. Consolidated Financial Report
For the nine-month period ended December 31, 2013

(2) Reconciliation of equity as of April 1, 2012
(Items related to consolidated statement of financial position)(Millions of yen)
Presentation
under JGAAP

JGAAPReclassification

Differences in Differences inthe scope of recognition andconsolidation
measurement

Notes

Presentation
under IFRSs

IFRSs

AssetsAssetsCurrent assets

Current assets
Cash and cash
equivalents
Trade and otherreceivables

Cash and deposits
Notes and accounts
receivable - tradeMarketable securities

Merchandise andfinished products
Deferred tax assets
Other current assets
Less: Allowance for
doubtfulaccounts
Total current assets

1,016,252)(1,693)6,554)-

1,021,113)

661,288)(35,571)(2,560)163,745)

4,575)(4,575)---

10,399)--10,399)Other financial
assets42,618)13,065)--55,683)Inventories

56,469)(56,469)---

168,265)(93,391)

2,690)

7,450)(39,015)

39,015)---

1,910,452)(129,220)6,684)

171,195)

1,959,111)

ED

786,902)85,014)

Fixed assets
Property andequipment, net

Other current assets

Total current assets
Non-current assets

1,296,393)-

22,076)58,716)B, I

1,377,185)

Goodwill

780,243)-

1,211)(3,543)

A

777,911)

Software310,151)(310,151)--

Other intangibles

36,121)

310,151)641)(6,590)340,323)

338,198)(338,198)---

Property, plant andequipment

Intangible assets, net:
Goodwill-

Intangible assets

Investments and otherassetsInvestment securities

201,465)

7,292)(231)

G

208,526)

185,040)(22,081)

155,640)E

318,599)

Deferred tax assets

104,327)

56,469)-22,613)

Other assets

134,077)(64,264)

77)

15,600)(15,957)

15,957)---

Total fixed assets

2,983,553)

56,469)9,216)

242,205)

3,291,443)

Deferred charges

5,700)-

21)(5,721)-

4,899,705)(72,751)

15,921)

407,679)

5,250,554)

Less: Allowance for
doubtfulaccounts

Total assets

Note: Described in “(10) Notes to the differences in recognition and measurement” on page 87.

70

183,409)
D, I

85,490)Investments
accounted forusing the equity
methodOther financial
assetsDeferred tax assets
Other non-current
assetsTotal non-current
assetsTotal assets

SoftBank Corp. Consolidated Financial Report
For the nine-month period ended December 31, 2013

(Millions of yen)
Presentation
under JGAAP

JGAAPReclassification

Differences inthe scope of
consolidation

Differences inrecognition andmeasurement

Notes

Presentation
under IFRSs

IFRSs

Liabilities
Current liabilities
716,824)-

209,847)

E, I

926,671)D

975,832)

Accounts payable -trade190,533)

747,461)

22,650)15,188)

Short-term borrowings
Current portion of
corporate bonds
Accounts payableother and accrued
expenses

403,168)(403,168)---

144,988)(144,988)---

835,053)(835,053)---

1,206)--

1,206)
123,213)

Income taxes payables

125,116)(2,614)

5)706)

Current portion of leaseobligations

152,683)(152,683)---

1,456)--

1,456)

72,184)(1,191)

174)

22,988)1,923,725)(72,750)

22,829)248,729)

1,425,264)-

338,009)

Other current liabilities
Total current liabilities

D, F

94,155)
2,122,533)

Long-term liabilities
E, I

1,763,273)

Corporate bonds

459,900)(459,900)---

Long-term debt

560,070)(560,070)---

9,711)

26,069)-Liability for
retirement benefits

Deferred tax liabilities

14,953)

20,370)Liabilities and equity
Current liabilities
Interest-bearing
debt
Trade and otherpayablesOther financial
liabilities
Income taxes
payablesProvisions
Other current
liabilities
Total current
liabilities
Non-current
liabilities
Interest-bearing
debt

1,390)

37,170)

Other financial
liabilities--

14,953)

Defined benefit
liabilities

20,603)40)-

20,643)

Provisions

-

(313)

25,294)45,351)

Deferred tax
liabilities

Allowance for point
mileage
Lease obligations

32,074)(32,074)---

347,700)(347,700)---

Other liabilities

105,273)(55,835)(9,999)40,146)

Total long-term liabilities

1,540,340)(1)

15,797)

404,839)

1,960,975)

Total liabilities

3,464,065)(72,751)

38,626)

653,568)

4,083,508)

Note: Described in “(10) Notes to the differences in recognition and measurement” on page 87.

71

D, F

79,585)

Other non-current
liabilities
Total non-current
liabilities
Total liabilities

SoftBank Corp. Consolidated Financial Report
For the nine-month period ended December 31, 2013

(Millions of yen)
Presentation
under JGAAP

JGAAPReclassification

Differences inthe scope of
consolidation

Differences inrecognition andmeasurement

Notes

Presentation
under IFRSs

IFRSs

EquityEquityEquity attributableto owners of theparentShareholders’ equity
Common stock
Additional paid-in
capitalRetained earnings

213,798)---

236,563)898)-

13,306)

E

250,767)

Common stock
Additional paid-in
capital

530,534)-(3,335)(121,615)(10)

405,584)

Retained earnings

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

Treasury stock(21,253)-

66,686)45,433)

Accumulated othercomprehensive
income10,567)(10,567)

-

-

-

(993)

993)

-

-

-

(30,827)

30,827)---

Accumulated othercomprehensive loss
Unrealized gain on
available-for-salesecurities
Deferred loss onderivatives underhedge accounting
Foreign currencytranslation
adjustments

213,798)

C, E

892,635)

Stock acquisition rights
Minority interests
Total equity
Total liabilities andequity--Total equity
attributable toowners of theparent

898)

(898)

498,047)-(19,370)(204,266)

1,435,640)-(22,705)(245,889)

1,167,046)

Total equity

4,899,705)(72,751)

15,921)

407,679)

5,250,554)

Total liabilities andequityNote: Described in “(10) Notes to the differences in recognition and measurement” on page 87.

72

A, B,
E, F

274,411)

Non-controllinginterests

SoftBank Corp. Consolidated Financial Report
For the nine-month period ended December 31, 2013

(3) Reconciliation of equity as of December 31, 2012
(Items related to consolidated statement of financial position)(Millions of yen)
Presentation
under JGAAP

JGAAPReclassification

Differences inthe scope of
consolidation

Differences inrecognition andmeasurement

Notes

Presentation
under IFRSs

IFRSs

AssetsCurrent assets

AssetsCurrent assets
Cash and cash
equivalents
Trade and otherreceivables

Cash and deposits

1,061,805)

161)

1,673)-

Notes and accounts
receivable - trade618,924)(7,113)(1,494)

213,698)

Marketable securities

6,591)(6,591)---

82,299)--82,299)Other financial
assetsInventories

1,063,639)
E

824,015)

Merchandise andfinished products
Deferred tax assets

50,427)

7,598)--

58,025)35,497)(35,497)---

Other current assets

285,137)(169,806)

3,773)

3,610)Less:
Allowance for
doubtful accounts(31,980)

31,980)--2,026,401)(96,969)

3,952)

217,308)

Total current assets

D

122,714)2,150,692)

Fixed assets
Property andequipment, net

Other current assets

Total current assets

Non-current assets
1,547,296)-

47,502)(34,570)

B, I

1,560,228)

Goodwill

735,868)-

1,211)

44,080)A

781,159)

Software365,976)(365,976)-

Other intangibles

28,540)365,976)

1,432)(5,676)390,272)

Investments and otherassetsInvestment securities

575,655)(575,655)---

Property, plantand equipment

Intangible assets, net:-

9,404)

7,561)

G

209,004)

435,567)(20,472)

162,152)E

577,247)

103,211)35,497)-28,320)

Other assets

139,388)(67,342)(993)

22,297)

Less:
Allowance for
doubtful accounts(15,391)

15,391)-

Total fixed assets

3,480,543)

35,497)38,084)

224,164)

Deferred charges

4,607)-

12)(4,619)5,511,551)(61,472)

42,048)436,853)

Total assets-

192,039)

Deferred tax assets-

Note: Described in “(10) Notes to the differences in recognition and measurement” on page 87.

73

Goodwill

167,028)
D,H,I

93,350)Intangible assets

Investments
accounted forusing the equity
methodOther financial
assetsDeferred tax assets
Other non-current
assets3,778,288)

Total non-current
assets5,928,980)

Total assets

SoftBank Corp. Consolidated Financial Report
For the nine-month period ended December 31, 2013

(Millions of yen)
Presentation
under JGAAP

JGAAPReclassification

Differences inthe scope of
consolidation

Differences inrecognition andmeasurement

Notes

Presentation
under IFRSs

IFRSs

Liabilities

Liabilities and equity

Current liabilities

Current liabilities
Interest-bearing
debt
Trade and otherpayablesAccounts payable–
trade
Short-term borrowings
Current portion of
corporate bonds
Accounts payableother and accrued
expenses

1,110,258)-

226,758)

E, I

1,337,016)

169,198)

540,052)

25,858)17,186)

D

752,294)

708,640)(708,640)---

188,190)(188,190)---

625,153)(625,153)

-

-

-

680)

-

-

680)
113,931)

Income taxes payables

114,986)(1,999)10)934)

Current portion of leaseobligations

186,310)(186,310)---

1,375)--

1,375)

88,736)(26,112)103)

25,021)

2,081,213)(84,039)

25,971)

269,899)

Other current liabilities
Total current liabilities

D, F

87,748)2,293,044)

Long-term liabilities

Corporate bonds
Long-term debt

Liability for
retirement benefits

E, I(414,900)---

623,766)(623,766)---

12,873)

26,036)(305)

38,604)

Other financial
liabilities--

14,734)

Defined benefit
liabilities

21,225)51)-

21,276)

Provisions

61,590)

Deferred tax
liabilities

16,672)

22,567)(297)

22,648)

Allowance for point
mileage

25,606)(25,606)---

521,095)(521,095)---

140,158)(97,355)(11,223)

45,242)

Total long-term liabilities

1,756,931)

22,567)43,701)

330,230)

2,153,429)

Total liabilities

3,838,144)(61,472)

69,672)600,129)

4,446,473)

Other liabilities

Non-current
liabilities
Interest-bearing
debt

414,900)

Deferred tax liabilities

Lease obligations

Other current
liabilities
Total current
liabilities

29,134)-

1,940,403)

Provisions

1,648,624)

14,734)

262,645)

Other financial
liabilities
Income taxes
payablesNote: Described in “(10) Notes to the differences in recognition and measurement” on page 87.

74

D, F

76,822)Other noncurrent liabilities
Total non-current
liabilities
Total liabilities

SoftBank Corp. Consolidated Financial Report
For the nine-month period ended December 31, 2013

(Millions of yen)
Presentation
under JGAAP

JGAAPReclassification

Differences inthe scope of
consolidation

Differences inrecognition andmeasurement

Notes

IFRSs

EquityPresentation
under IFRSs

Common stock
Additional paid-in
capitalRetained earnings

222,203)---

193,739)945)-

12,738)E

207,422)EquityEquity attributableto owners of theparentCommon stock
Additional paid-in
capital699,697)-(6,974)(44,395)（10）

648,328)

Retained earnings

Less: Treasury stock(22,874)---(22,874)

Treasury stock

44,091)-73,070)117,161)

Accumulated othercomprehensive
income1,256)(1,256)---36,143)(36,143)---

6,692)(6,692)---

Shareholders’equityAccumulated othercomprehensive income
Unrealized gain on
available-for- salesecurities
Deferred gain onderivatives
under hedge
accounting
Foreign currencytranslation
adjustments

222,203)

C,E,G

1,172,240)

Stock acquisition rights

945)

(945)

-

-

A, B,
E, F

Minority interests

535,606)-(20,650)(204,689)

Total equity
Total liabilities andequity1,673,407)-(27,624)(163,276)

1,482,507)

42,048)436,853)

5,928,980)

5,511,551)(61,472)

Note: Described in “(10) Notes to the differences in recognition and measurement” on page 87.

75

Total equity
attributable toowners of theparent310,267)

Non-controllinginterests
Total equity
Total liabilities andequitySoftBank Corp. Consolidated Financial Report
For the nine-month period ended December 31, 2013

(4) Reconciliation of equity as of March 31, 2013
(Items related to consolidated statement of financial position)(Millions of yen)
Presentation
under JGAAP

JGAAPReclassification

Differences in Differences inthe scope of recognition andconsolidation
measurement

Notes

Presentation
under IFRSs

IFRSs

AssetsAssetsCurrent assets

Current assets
Cash and cash
equivalents
Trade and otherreceivables

Cash and deposits

1,369,135)(4,505)74,427)

Notes and accounts
receivable - trade662,187)

26,174)

26,516)

Marketable securities

4,704)(4,704)--

227,235)

2,004)-

229,239)

Other financial
assetsInventories

221,430)

1,439,057)
D, E

936,307)-

Merchandise andfinished products

43,846)

8,021)

2,401)-

54,268)Deferred tax assets

50,580)(50,580)---

Other current assets

490,964)(370,795)

747)

6,232)Less:
Allowance for
doubtful accounts(30,219)

30,219)--2,591,197)(138,935)

Total current assets

106,095)

D

127,148)-

227,662)2,786,019)

Fixed assets
Property andequipment, net

Other current assets

Total current assets
Non-current assets

1,657,640)-

208,596)(35,621)B, I

1,830,615)

734,407)-

138,978)

54,014)

A

927,399)(383,733)--

383,733)

109,844)(5,489)Property, plant andequipment

Intangible assets, net:
Goodwill
Software
Other intangibles
Investments andother assets
Investment securities

383,733)
36,805)

870,608)(870,608)-

8,863)

G

208,664)

464,151)(2,197)

172,693)E

634,647)(21)

24,864)

Other assets

158,558)(69,274)

13,902)25,996)Less:
Allowance for
doubtful accounts(16,909)

16,909)--Total fixed assets

3,924,809)

50,581)

Deferred charges

8,880)(88,354)

210,080)

245,320)9)(8,889)316,184)

464,093)

Note: Described in “(10) Notes to the differences in recognition and measurement” on page 87.

76

Intangible assets-(259,022)

50,580)6,524,886)

524,893)458,823)

99,967)

Total assets--

Deferred tax assets

Goodwill

175,390)
D,H,I

129,182)

Investments
accounted forusing the equity
methodOther financial
assetsDeferred tax
assetsOther non-current
assets4,430,790)

Total non-current
assets7,216,809)

Total assets

SoftBank Corp. Consolidated Financial Report
For the nine-month period ended December 31, 2013

(Millions of yen)
Presentation
under JGAAP

JGAAPReclassification

Differences in Differences inthe scope of recognition andconsolidation
measurement

Notes

Presentation
under IFRSs

IFRSs

Liabilities

Liabilities and equity

Current liabilities

Current liabilities
1,243,412)

52,424)

238,292)

E, I

1,534,128)

D

972,669)

Accounts payabletrade194,654)696,218)

63,705)18,092)

Short-term borrowings

813,491)(813,491)---

205,000)(205,000)---

751,690)(751,690)---

4,833)--

4,833)
182,050)

Current portion of
corporate bonds
Accounts payable other and accrued
expenses

Interest-bearing debt
Trade and otherpayablesOther financial
liabilities
Income taxes
payablesIncome taxes payables

179,559)(3,096)

4,653)

934)

Deferred tax liabilities

71,975)(71,975)---

Current portion of leaseobligations

192,603)(192,603)---

1,252)

350)-

1,602)

Provisions

181,212)(68,189)

4,299)

25,312)

142,634)

Other current
liabilities

2,590,184)(160,329)

125,431)282,630)

Other current liabilities
Total current liabilities

D, F

2,837,916)

Long-term liabilities
1,721,366)

188,231)

264,128)E, I

2,173,725)

Total current liabilities
Non-current
liabilities
Interest-bearing
debt

Corporate bonds

734,900)(734,900)---

Long-term debt

354,291)(354,291)---

25,673)-38,654)---

14,506)

20,847)918)-

21,765)

Provisions

119,628)

Deferred tax
liabilities

12,981)

Liability for
retirement benefits

14,506)

Other financial
liabilities
Defined benefit
liabilities

Deferred tax liabilities

17,940)71,975)5,879)

23,834)

Allowance for point
mileage

22,548)(22,548)---

Lease obligations

526,739)(526,739)---

Other liabilities

157,319)(116,716)(8,552)

48,136)

212,149)

336,098)

2,448,465)

Total non-current
liabilities

337,580)

618,728)5,286,381)

Total liabilities

Total long-term liabilities
Total liabilities

1,828,243)
4,418,427)

71,975)(88,354)

Note: Described in “(10) Notes to the differences in recognition and measurement” on page 87.

77

D, F

80,187)

Other non-current
liabilities

SoftBank Corp. Consolidated Financial Report
For the nine-month period ended December 31, 2013

(Millions of yen)
Presentation
under JGAAP

JGAAPReclassification

Differences in Differences inthe scope of recognition andconsolidation
measurement

Notes

Presentation
under IFRSs

IFRSs

EquityEquityEquity attributableto owners of theparentShareholders’ equity
Common stock

238,772)---

Additional paid-in
capital429,689)

736)

(125)

6,404)

Retained earnings

753,616)-(6,037)(22,834)---

169,842)(1)

78,185)

Less: Treasury stock(35,491)

238,772)

Common stockE

436,704)

Additional paid-in
capital(10)712,088)

Retained earnings(22,834)

Treasury stock
Accumulated othercomprehensive
income

C,E,G

248,026)

Accumulated othercomprehensive income
Unrealized gain on
available-for-salesecurities

4,164)(4,164)---

Deferred gain onderivatives underhedge accounting

114,158)(114,158)---

Foreign currencytranslation
adjustments

51,520)(51,520)---

1,612,756)

Stock acquisition rights
Minority interests

736)

(736)

-

-

Total equity
attributable toowners of the parent

A, B
E, F

317,672)

Non-controllinginterests

536,638)-(15,233)(203,733)

Total equity

2,106,459)-(21,396)(154,635)

1,930,428)

Total equity

Total liabilities andequity6,524,886)

316,184)

464,093)

7,216,809)

Total liabilities andequity(88,354)

Note: Described in “(10) Notes to the differences in recognition and measurement” on page 87.

78SoftBank Corp. Consolidated Financial Report
For the nine-month period ended December 31, 2013

(5) Adjustment to comprehensive income for the nine-month period ended December 31, 2012
(Items related to consolidated statement of income)(Millions of yen)
Presentation
under JGAAP

JGAAPReclassification

Differences in Differences inthe scope of recognition andconsolidation measurement

Presentation
under IFRSs

Notes

IFRSs

D

2,346,972)

Net sales

2,509,790)

7,925)(3,466)(167,277)

Cost of sales(1,163,227)(7,236)(3,412)

7,480)

B,D,F,I (1,166,395)

Gross profit

1,346,563)

689)(6,878)(159,797)

1,180,577)

Selling, general andadministrative
expenses(746,414)

840)(1,685)

196,426)

Operating income

600,149)

A,B,D,
E,F,H,
I(550,833)

Net sales
Cost of sales
Gross profit

Selling, general andadministrative
expenses

1,778)--

1,778)----

Income fromremeasurement
relating tobusiness
Other operating
income631,522)

Operating income(65,788)700)

16,704)(11,938)

1,620)

7,506)

E,G,I
G(48,384)

Finance cost, net(2,812)Equity in loss of
associates

Non-operating income

11,653)(11,653)---

Non-operating expenses(82,382)

82,382)---

Ordinary income

529,420)

Special income

10,256)(10,256)---

Special loss

(13,946)

13,946)---

Income before income
taxes and minority
interests

525,730)-(6,243)60,839)

Income taxes(236,432)-

12)

Income before
minority interests

289,298)-(6,231)

580,326)

Income before
income tax

10,900)(225,520)

Income taxes

71,739)354,806)

Note: Described in “(10) Notes to the differences in recognition and measurement” on page 87.

79

（10）

Net income

SoftBank Corp. Consolidated Financial Report
For the nine-month period ended December 31, 2013

(Items related to consolidated statement of comprehensive income)(Millions of yen)
Presentation
under JGAAP

Income before minority
interests

JGAAP
289,298)

Reclassification

Differences inthe scope of
consolidation

Differences inrecognition andmeasurement-(6,231)

71,739)

Notes

IFRSs
354,806)

Presentation
under IFRSs

Net income
Other
comprehensive
income (loss),
net of tax

Other comprehensive
income (loss)

Items that will not
be reclassified
to profit or loss

-

-

(1)

(1)

(1)

Remeasurementsof defined
benefit plan
Total items thatwill not bereclassified to
profit or loss
Items that may bereclassified
subsequently to
profit or loss

Unrealized loss onavailable-forsale securities(9,288)--6,881)

Deferred gain onderivatives underhedge accounting

37,133)

-

-

-

E

(2,407)Availablefor-salefinancial assets

37,133)

Cash flow hedges

Foreign currencytranslation adjustment

29,119)

-

-

(20)

29,099)Exchangedifferences ontranslating
foreign
operations

Share of othercomprehensive
income of affiliatedcompanies accounted
for using equity
method7,971)--

301)

8,272)

Share of othercomprehensive
income ofassociates

72,097)

Total items that
may bereclassified
subsequently to
profit or loss

Total othercomprehensive
income64,935)--

7,161)

72,096)

Total othercomprehensive
income, net of tax

Comprehensive
income354,233)-(6,231)

78,900)426,902)

Total comprehensive
incomeNote: Described in “(10) Notes to the differences in recognition and measurement” on page 87.

80

SoftBank Corp. Consolidated Financial Report
For the nine-month period ended December 31, 2013

(6) Adjustment to comprehensive income for the three-month period ended December 31, 2012
(Items related to consolidated statement of income)(Millions of yen)
Presentation
under JGAAP

JGAAPReclassification

Differences in Differences inthe scope of recognition andconsolidation
measurement

Notes

IFRSs

Net sales

923,680)

2,489)(1,392)(82,449)

D

842,328)

Cost of sales(450,756)(2,237)180)

4,686)

B,D,F,I(448,127)

Gross profit

472,924)

252)(1,212)(77,763)

Selling, general andadministrative
expenses(275,537)

249)(1,193)82,895)

Operating income

197,387)394,201)

A,B,D,
E,F,H,I(193,586)

Presentation
under IFRSs

Net sales
Cost of sales
Gross profit
Selling, general andadministrative
expenses

1,778)--

1,778)----

Income fromremeasurement
relating tobusiness
combination
Other operating
income202,393)

Operating income(27,765)536)

16,222)

E,G,I(11,007)

Finance cost, net(4,836)373)

2,931)

G(1,532)Equity in loss of
associates

Non-operating income

5,062)(5,062)---Non-operating expenses(36,039)

36,039)---(2,904)---

Ordinary income
166,410)Special income
2,904)

Special loss

(2,249)2,249)--

Income before income
taxes and minority
interests

167,065)-(1,496)24,285)

Income taxes(80,614)-(1)

Income before minority
interests

86,451)-(1,497)

189,854)

Income before
income tax

3,039)(77,576)

Income taxes

27,324)112,278)

Note: Described in “(10) Notes to the differences in recognition and measurement” on page 87.

81

（10）

Net income

SoftBank Corp. Consolidated Financial Report
For the nine-month period ended December 31, 2013

(Items related to consolidated statement of comprehensive income)(Millions of yen)
Presentation
under JGAAP

Income before minority
interests

Reclassification

JGAAP
86,451-

Differences in Differences inthe scope of recognition andconsolidation
measurement(1,497)

Notes

27,324)

IFRSs
112,278)

Presentation
under IFRSs

Net income
Other
comprehensive
income (loss),
net of tax

Other comprehensive
Income (loss)

Items that will
not be reclassified
to profit or loss

-

-

-

(2)

(2)

Remeasurementsof defined benefit
plan

(2)

Total items thatwill not bereclassified to
profit or loss
Items that
may bereclassified
subsequently to
profit or loss

Unrealized gain on
available-for-salesecurities

1,445

-

-

Deferred gain onderivatives underhedge accounting

36,962--Foreign currencytranslation
adjustment
Share of othercomprehensive
income of affiliatedcompanies
accounted for using
equity method

37,678

8,645

-

-

-

-

Total othercomprehensive income

84,730--Comprehensive income

171,181-(1,497)E
1,433)

-

(48)

340)

1,723)
29,047)

Note: Described in “(10) Notes to the differences in recognition and measurement” on page 87.

82

2,878)

Available-forsale financial
assets36,962)

Cash flow hedges

37,630)Exchangedifferences ontranslating
foreign
operations

8,985)

Share of othercomprehensive
income ofassociates

86,455)

Total items that
may bereclassified
subsequently to
profit or loss

86,453)
198,731)

Total othercomprehensive
income, net of tax
Total comprehensive
incomeSoftBank Corp. Consolidated Financial Report
For the nine-month period ended December 31, 2013

(7) Adjustment to comprehensive income for the year ended March 31, 2013
(Items related to consolidated statement of income)(Millions of yen)
Presentation
under JGAAP

Differences in Differences inthe scope of recognition andconsolidation
measurement

JGAAP

Reclassification

Net sales

3,378,365)

10,191)

38,823)

Cost of sales(1,590,740)(9,522)Gross profit

1,787,625)

669)

Selling, general andadministrative expenses
Operating income(1,042,625)

2,574)

Presentation
under IFRSs

Notes

IFRSs

(224,843)

D

3,202,536)

Net sales(22,918)

12,338B, D
F, I(1,610,842)

Cost of sales

15,905)(212,505)

1,591,694)

Gross profit(794,073)

Selling, general andadministrative
expenses(24,757)

270,735

A,B,D,
E, F,
H,I

745,000)
1,778)--

1,778)----

Income fromremeasurement
relating to businesscombination
Other operating
income799,399)

Operating income(88,477)

1,386)

6,859

E,G,I

(80,232)

Finance cost, net(11,050)

(908)

8,295

G

(3,663)Equity in loss of
associates

Non-operating income

19,779)(19,779)---

Non-operating expenses(111,565)

111,565)---

Ordinary income

653,214)

Special income

11,383)(11,383)---

Special loss

(14,103)---

14,103)

Income before income
taxes and minority
interests

650,494)-(8,374)73,384

Income taxes(287,174)-

1,543)

Income before minority
interests

363,320)-(6,831)

715,504)

Income before
income tax

7,964(277,667)

Income taxes

81,348437,837)

Net income

Note: Described in “(10) Notes to the differences in recognition and measurement” on page 87.

83

(10)

SoftBank Corp. Consolidated Financial Report
For the nine-month period ended December 31, 2013

(Consolidated statement of comprehensive income)(Millions of yen)
Presentation
under JGAAP

Income before minority
interests

JGAAP
363,320)

Reclassification-

Differences in Differences inthe scope of recognition andconsolidation
measurement(6,831)

Notes

81,348)

IFRSs
437,837)

Presentation
under IFRSs

Net income
Other comprehensive
income (loss), net oftax

Other comprehensive
income (loss)

Items that will not
be reclassified to
profit or loss

-

-

68)

68)

Remeasurementsof defined benefit
plan

68)

Total items that will
not be reclassified
to profit or loss
Items that may
be reclassified
subsequently to
profit or loss

Unrealized loss onavailable-for-salesecurities(8,121)-

1)

12,609)Deferred gain onderivatives underhedge accounting

117,859)-(2,723)-Foreign currencytranslation
adjustment

Share of othercomprehensive
income of affiliatedcompanies accounted
for using the equity
method65,906)

15,270)---2,710)

(50)

821)

E

4,489)

Available-forsale financial
assets

115,136)

Cash flow hedges

65,856)

Exchangedifferences ontranslating
foreign
operations

18,801)

Share of othercomprehensive
income ofassociates

204,282)

Total items that
may bereclassified
subsequently to
profit or loss

Total othercomprehensive
income190,914)-(12)

13,448)204,350)

Total othercomprehensive
income, net of tax

Comprehensive
income554,234)-(6,843)

94,796)642,187)

Total comprehensive
incomeNote: Described in “(10) Notes to the differences in recognition and measurement” on page 87.

84SoftBank Corp. Consolidated Financial Report
For the nine-month period ended December 31, 2013(8) Notes to the reclassification
The following reclassifications are made for the transition to IFRSs and do not affect retained earnings andcomprehensive income.
a. Under JGAAP, investments in associates were included in investment securities.
separately presented as investments accounted for using the equity method.

Under IFRSs, they are

b. Under JGAAP, short-term borrowings, current portion of corporate bonds and current portion of lease obligations
are presented as separate components and installment payables were included in accounts payable-other andaccrued expenses. Under IFRSs, they are all included in interest-bearing debt (current). In addition, under
JGAAP, corporate bonds, long-term debt and lease obligations (non-current) are presented as separate
components and long-term installment payables were included in other liabilities (long term). Under IFRSs,
they are all included in interest-bearing debt (non-current).
c. Under JGAAP, accounts payable - trade were presented separately. Accounts payable - other (except for
installment payables) were included in accounts payable - other and accrued expenses. Deposits and otherpayables were included in other current liabilities. Under IFRSs, they are all included in trade and otherpayables.
d. All deferred tax assets and liabilities that were classified as current items under JGAAP are classified as
non-current items under IFRSs.
e. Upon transition to IFRSs, sales and cost of sales arising from transactions where the Company acts as a principal
are presented on a gross basis. Sales and cost of sales arising from transactions where the Company acts as anagent are presented on a net basis.
f. Finance income and cost, such as interest expense, that were presented as non-operating income, non-operating
expenses, special income and special loss under JGAAP are presented under finance income (cost), net under
IFRSs.
g. Other reclassifications have been made by aggregating or separating presentation under JGAAP to be consistent
with the presentation under IFRSs.
(9) Notes to the differences in the scope of consolidation
The effect of the review of the scope of consolidation under IFRSs from JGAAP is separately presented in thesereconciliations.
Under JGAAP, Wireless City Planning Inc. (“WCP”), which operates a wireless communications network using
AXGP technology, was accounted for using the equity method, as the Company owns 33.3% of its voting rights.
Upon transition to IFRSs, the Company determined that it has substantial control over WCP and included it into thescope of consolidation considering the fact that the Company constitutes the majority of members of WCP’s board of
directors and that WCP’s business activities significantly depend on the Company.
eAccess Ltd. became the Company’s wholly owned subsidiary effective on January 1, 2013. On January 17, 2013,
the Company transferred certain stocks of eAccess Ltd. to 11 companies outside of the Company.
Under JGAAP, the Company’s voting rights in eAccess Ltd. decreased to 33.3% after the transfer of stocks andeAccess Ltd. was accounted for using the equity method. Under IFRSs, the Company determined that it has
substantial control over eAccess Ltd. and included it into the scope of consolidation, as the economic ownership ratioof 99.5% is significantly higher than the percentage of voting rights and the proportion of voting rights is relatively
large compared to other holders of voting rights due to the dispersion of voting rights.
Set out below is the consideration transferred, fair values of assets and liabilities, non-controlling interests, goodwill
and increase from acquisition of control over subsidiaries, recognized in accordance with IFRS 3 “Businesscombinations”, as a result of consolidation of eAccess Ltd. on January 1, 2013:
a. Consideration transferred, fair values of assets and liabilities, non-controlling interest, and goodwill on theacquisition date85

SoftBank Corp. Consolidated Financial Report
For the nine-month period ended December 31, 2013

（Millions of yen）

Consideration transferred 1

A

Acquisition date
(January 1, 2013)
218,296
84,069Current assets
Property, plant and equipment
Intangible assets
Other non-current assets

147,886
109,317

Total assets

379,583

Current liabilities
Non-current liabilities

108,073
190,576

Total liabilities

298,649

38,311

Net assets

B

80,934Non-controlling interests2

C

404

Goodwill

A-(B-C)

137,766

Notes:
1. Consideration transferred is SoftBank Corp.’s stock issued by the share exchange with eAccess Ltd.
2. Non-controlling interests are measured based on the proportionate interests in identifiable net assets of the acquiree.

b. Increase from acquisition of control over subsidiaries(Millions of yen)
Acquisition date
(January 1, 2013)
Cash and cash equivalents held by the acquiree at the time of acquisitionof control
The proceeds from transfer of Class B shares of eAccess Ltd.
Increase in cash from the acquisition of control over the subsidiary86

29,796
1,100
30,896

SoftBank Corp. Consolidated Financial Report
For the nine-month period ended December 31, 2013(10) Notes to the differences in recognition and measurement
Major adjustments to the retained earnings are as follows:(Millions of yen)

Retained earnings under JGAAP
Differences in the scope of consolidation
Differences in recognition and measurement
A. Goodwill
B. Property, plant and equipment
C. Cumulative translation differences for foreign
operations at the date of transition to IFRSs
D. Revenue recognition
E. Financial instruments
F. Employee benefits
G. Investments in associates
H. Acquisition-related costs arising from businesscombinations
I. Leases
Other
Tax effect on adjustments above and other tax effects
Total differences
Retained earnings under IFRSs

As ofApril 1, 2012
530,534)(3,335)

As ofDecember 31, 2012
699,697)(6,974)As ofMarch 31, 2013
753,616)(6,037)(2,750)(49,256)

44,580)(51,023)

60,798)(50,914)(30,827)(19,919)(20,370)(14,404)(231)(30,827)(23,911)(3,039)(14,404)
7,262)(30,827)(17,048)(14,517)(14,338)
8,042)(4,203)(6,590)26,935)(121,615)
405,584)(3,061)(3,194)(4,808)38,030)(44,395)
648,328)(3,801)(2,850)(5,094)35,058)(35,491)
712,088)*A to I and “Other” in the table above are presented before net of tax effects.

Major adjustments to income before income tax are as follows:(Millions of yen)

Nine-month period
ended
December 31, 2012

Three-month period
ended
December 31, 2012

Year ended
March 31, 2013

525,730)(6,243)167,065)(1,496)650,494)(8,374)47,656)(1,591)

15,995)(306)

64,022)(1,307)---

Income before income taxes and minority interests under
JGAAP
Differences in the scope of consolidation
Differences in recognition and measurement
A. Goodwill
B. Property, plant and equipment
C. Cumulative translation differences for foreign
operations at the date of transition to IFRSs
D. Revenue recognition
E. Financial instruments
F. Employee benefits
G. Investments in associates
H. Acquisition-related costs arising from businesscombinations
I. Leases
Other
Total differences
Income before income tax under IFRSs

87(6,543)(3,992)
12,571)
1)
7,493)

14,591)3)
2,924)

2,871)
1,093)(90)
8,273)(3,061)(3,061)(3,801)

1,009)
753)
60,839)580,326)

320)
362)
24,285)
189,854)

1,353)
970)
73,384)
715,504)

SoftBank Corp. Consolidated Financial Report
For the nine-month period ended December 31, 2013

Details of major differences are as follows:
A. Goodwill
Under JGAAP, goodwill was amortized regularly over the periods in which economic benefits were reasonably
expected to be realized. Under IFRSs, it is not amortized regularly and this resulted in an increase of theremaining amount of goodwill and a decrease of selling, general and administrative expenses for the nine-month
period ended December 31, 2012 and for the year ended March 31, 2013.
An impairment test on goodwill was performed on April 1, 2012 and an impairment loss of ¥3,543 million on
goodwill was recognized on April 1, 2012. The amount of the impairment loss on goodwill attributable to ownersof the parent was deducted from retained earnings. The impaired goodwill is mainly related to the Fixed-line
Telecommunications segment and Internet segment.
The effect arising from the differences is summarized as follows:(Millions of yen)(Consolidated statements of financial position)

As ofApril 1, 2012

As of
December 31, 2012

As ofMarch 31, 2013

Increase (decrease) in goodwill
Decrease in non-controlling interests(3,543)793)

44,386
194

60,751
47

Increase (decrease) in retained earnings(2,750)44,58060,798(Consolidated statements of income)Nine-month period
ended
December 31, 2012

Three-month period
ended
December 31, 2012

Year ended
March 31, 2013

47,65615,99564,02247,65615,99564,022

Decrease in selling, general and administrative
expenses
Increase in income before income tax
B. Property, plant and equipment

Upon transition to IFRSs, residual values and depreciation method of property, plant and equipment have beenreviewed.
The effect arising from the differences is summarized as follows:(Millions of yen)(Consolidated statements of financial position)

As ofApril 1, 2012

As of
December 31, 2012

As ofMarch 31, 2013

Decrease in property, plant and equipment(46,257)(47,849)(47,564)

Increase in non-controlling interests(2,999)(3,174)(3,350)Decrease in retained earnings(49,256)(51,023)(50,914)Nine-month period
ended
December 31, 2012
(1,895)Three-month period
ended
December 31, 2012
(482)

Year ended
March 31, 2013

304)

176)

610)

(1,591)(306)(1,307)(Consolidated statements of income)
Increase in cost of sales
Decrease in selling, general and administrative
expenses
Decrease in income before income tax

88(1,917)

SoftBank Corp. Consolidated Financial Report
For the nine-month period ended December 31, 2013

C. Cumulative translation differences for foreign operations at the date of transition to IFRSs
By applying the exemption as an IFRSs first-time adopter as described above, the Company has transferred all
cumulative translation differences for foreign operations to retained earnings on the date of transition to IFRSs(April 1, 2012), which has resulted in a decrease in retained earnings by ¥30,827 million.
D. Revenue recognition
a. Under JGAAP, commission fees related to sales of mobile handsets that the Company pays to dealers of mobile
handsets were expensed as incurred. Under IFRSs, the amount of commission fees expected to occur in the
future is deducted from the related revenues.
b. Under JGAAP, activation fees and upgrade fees were recognized as revenues upon receipt. Under IFRSs, they
are deferred upon entering into the contract and recognized as revenues over the estimated average contract
period and estimated average usage period of handsets. Direct costs related to activation are deferred to theextent that the activation fees and upgrade fees are amortized over the same periods.
c. Under JGAAP, an allowance for point mileage was accrued based on the estimated future obligation arisingfrom point service to customers and provisions for the allowance were expensed as selling, general andadministrative expenses. Under IFRSs, point services are recognized individually as goods to be transferred orservices to be provided in the future. The fair value of benefits exchanged with points is deducted fromrevenues and revenues are recognized when customers use those points.
The effect arising from the differences is summarized as follows:(Millions of yen)(Consolidated statements of financial position)

As ofApril 1, 2012

As of
December 31,2012

As ofMarch 31, 2013

Increase in trade and other receivables
Increase in other current assets
Increase in other non-current assets
Increase in trade and other payables
Increase in other current liabilities

10,009)38,942)(19,919)(10,009)12,744)43,459)(23,911)(12,744)

1,226)
14,462)45,990)(18,274)(14,462)

Increase in other non-current liabilities(38,942)(43,459)(45,990)

Decrease in retained earnings(19,919)(23,911)(17,048)

Nine-month period
ended
December 31, 2012
(167,277)

Three-month period
ended
December 31, 2012
(82,449)

Year ended
March 31, 2013

7,252)

4,529)

11,501)

156,033)

71,377)

216,213)(3,992)(6,543)2,871)(Consolidated statements of income)Decrease in net sales
Decrease in cost of sales
Decrease in selling, general and administrative
expenses
Increase (decrease) in income before income tax

89(224,843)

SoftBank Corp. Consolidated Financial Report
For the nine-month period ended December 31, 2013

E. Financial instruments
a. Under JGAAP, convertible bonds with stock acquisition rights were recognized as a whole and presented as aliability. Under IFRSs, stock acquisition rights embedded in convertible bonds are recognized separately andpresented as additional paid-in capital. They are measured as the difference between the entire fair value of theconvertible bonds with stock acquisition rights and the fair value of similar bonds with no stock acquisition rights.
Also, under JGAAP, transaction costs related to the issuance of bonds are recognized as an asset and amortizedover the redemption period. Under IFRSs, they are allocated to the liability and equity components in proportion
to the carrying amounts. The costs related to liability are reflected in the measurement of amortized cost of thebond and recognized as expenses over the redemption period. The cost related to stock acquisition rights isdeducted from equity.
b. Under JGAAP, commission fees related to borrowing were expensed as incurred. Under IFRSs, they areincluded in measuring the liability at amortized cost and recognized as an expense over the redemption period.
c. Under JGAAP, financial assets related to securitization transactions were derecognized when control over financial
components of the financial assets is transferred to a third party. Under IFRSs, financial assets are derecognizedwhen 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 ownership of the financial asset. Therefore, for certain securitizationtransactions that previously qualified for extinguishment of financial assets under JGAAP, securitized receivables
are recognized retrospectively and accompanying liabilities are recognized as borrowings under IFRSs since they
are not qualified for derecognition of financial assets under IFRSs.
d. Under JGAAP, unlisted shares were measured based on their historical costs and impaired as necessary. Under
IFRSs, they are classified as available-for-sale financial assets and measured at their fair values.
e. Under JGAAP, advances to dealers for installment sales receivables of mobile handsets were recognized as
account-trade receivables by the amount under the installment contract, less allowance for doubtful accounts.
Under IFRSs, the receivables arising from advances to dealers are recognized as trade and other receivables orother financial assets (non-current), while commission is expensed. Commission consists of credit risk,collecting costs and interest due to the passage of time.
f. Under JGAAP, preferred securities issued by a subsidiary were accounted for as equity transactions. Under
IFRSs, they are accounted for as interest-bearing debt and measured at amortized cost using the effective interest
method as it is necessary to deliver cash to owners of preferred securities in the future.
The effect arising from the differences is summarized as follows:(Millions of yen)(Consolidated statements of financial position)

As ofApril 1, 2012

As of
December 31,2012

As ofMarch 31, 2013

Increase in trade and other receivables
Increase in other financial assets (non-current)
Increase in interest-bearing debt (current)
Increase in interest-bearing debt (non-current)
Increase in additional paid-in capital (before tax)
Increase in accumulated other comprehensive
income (before tax)
Decrease in non-controlling interests
Other

163,745)
155,640)(205,229)(253,987)(22,366)

213,698)
162,152)(226,582)(262,596)(21,979)

220,204)
172,693)(238,245)(264,087)(22,035)(56,170)(65,150)(71,529)

204,413)(6,416)204,270)(6,852)

204,135)(15,653)

Decrease in retained earnings(20,370)(3,039)(14,517)90SoftBank Corp. Consolidated Financial Report
For the nine-month period ended December 31, 2013

Nine-month period
ended
December 31, 2012

Three-month period
ended
December 31, 2012

Year ended
March 31, 2013

Increase in selling, general and administrative
expenses(3,943)(1,580)(5,463)

Decrease in finance cost

16,514)

16,171)

6,556)

Increase in income before income tax

12,571)

14,591)

1,093)(Consolidated statements of comprehensive
income)Nine-month period
ended
December 31, 2012

Three-month period
ended
December 31, 2012

Year ended
March 31, 2013

Increase in available-for-sale financial assets

6,881

1,433

12,609

Increase in other comprehensive income(net of tax)

6,881

1,433

12,609(Consolidated statements of income)F. Employee benefitsa. Upon transition to IFRSs, unused paid absences and long-term employee benefits are recognized as liabilities.
b. Under JGAAP, unrecognized actuarial gains and losses of retirement benefit obligations in the defined benefit
plans were expensed as incurred in principle. Under IFRSs, they are recognized as other comprehensive
income and transferred to retained earnings as incurred.

The effect arising from the differences is summarized as follows:(Millions of yen)(Consolidated statements of financial position)

As ofApril 1, 2012

As of
December 31,2012

As ofMarch 31, 2013

Increase in other current liabilities(12,002)(12,002)(11,817)

Increase in other non-current liabilities
Decrease in non-controlling interests(3,783)
1,381)(3,783)
1,381)(3,952)
1,431)

Decrease in retained earnings(14,404)(14,404)(14,338)

Nine-month period
ended
December 31, 2012
0Three-month period
ended
December 31, 20120Year ended
March 31, 2013

1

3

(81)

1

3

(90)

(Consolidated statements of income)
Increase in cost of sales
Decrease (increase) in selling, general andadministrative expenses
Increase (decrease) in income before income
tax

91

(9)

SoftBank Corp. Consolidated Financial Report
For the nine-month period ended December 31, 2013

G. Investments in associates
Under JGAAP, goodwill related to investments accounted for using the equity method was amortized equally overthe periods in which economic benefits were reasonably expected to be realized. Under IFRSs, it is notamortized regularly, and resulting in an increase in investments accounted for using the equity method for thenine-month period ended December 31, 2012 and for the year ended March 31, 2013. As of April 1, 2012, theentire investment over associates, including goodwill, is tested for impairment. As a result, as of April 1, 2012,
the Company recognized an impairment loss of ¥231 million and deducted it from retained earnings.

The effect arising from the differences is summarized as follows:(Millions of yen)

As ofDecember 31,2012

As ofMarch 31, 2013

(231)

7,561)

8,863)

-

(299)

(821)

(231)

7,262)

8,042)

Nine-month period
ended
December 31, 2012

Three-month period
ended
December 31, 2012

Year ended
March 31, 2013

(13)

(7)

(22)

Increase in equity in income of associates

7,506)

2,931)

8,295)

Increase in income before income tax

7,493)

2,924)

8,273)(Consolidated statements of financial position)

As ofApril 1, 2012

Increase (decrease) in investments accounted
for using the equity method
Increase in accumulated other comprehensive
income (before tax)
Increase (decrease) in retained earnings(Consolidated statements of income)
Increase in finance cost

H. Acquisition-related costs arising from business combinations
Under JGAAP, acquisition-related costs arising from business combinations are recognized as an asset when they
are regarded as consideration for the acquisitions. Under IFRSs, they are expensed as incurred or when services
are rendered as transaction costs, directly attributable to business combinations, which have resulted in a decreasein other non-current assets.
The effect arising from the differences is summarized as follows:(Millions of yen)(Consolidated statements of financial position)

As ofApril 1, 2012

As of
December 31,2012

As ofMarch 31, 2013

Decrease in other non-current assets-(3,061)(3,801)

Decrease in retained earnings-(3,061)(3,801)

Nine-month period
ended
December 31,2012

Three-month period
ended
December 31, 2012

Year ended
March 31, 2013

Increase in selling, general and administrative
expenses(3,061)(3,061)(3,801)

Decrease in income before income tax(3,061)(3,061)(3,801)(Consolidated statements of income)92SoftBank Corp. Consolidated Financial Report
For the nine-month period ended December 31, 2013

I. Leases
Under JGAAP, finance lease transactions in which the ownership of leased assets was not transferred to lessees andthat are contracted before April 1, 2008, are accounted for as operating lease transactions as permitted exceptionally.
Under IFRSs, leased assets and lease obligations are recognized. Accordingly, provisions for impairment of leased
assets which were previously included in other liabilities (non-current) under JGAAP are offset by property, plantand equipment. Long-term prepaid lease expenses are offset by lease obligations.
The effect arising from the difference is summarized as follows:(Millions of yen)

As ofDecember 31,2012

As ofMarch 31, 2013

104,973)(22,676)

13,278)(17,799)

11,943)(16,059)

Other(4,619)(84,023)
2,142)(176)(49)
1,552)(47)(41)
1,354)

Decrease in retained earnings(4,203)(3,194)(2,850)(Consolidated statements of financial position)

As ofApril 1, 2012

Increase in property, plant and equipment
Decrease in other non-current assets
Increase in interest-bearing debt (current)
Increase in interest-bearing debt (non-current)(Consolidated statements of income)Decrease in cost of sales
Decrease in selling, general and administrative
expenses
Decrease in finance cost

Nine-month period
ended
December 31, 2012
786

Three-month period
ended
December 31, 2012
263

Year ended
March
31, 2013
1,066

12

0

12

211

57

275

1,009

320

1,353

Increase in income before income tax(11) Notes to reconciliation of cash flows

The adjustment of cash flows for the nine-month period ended December 31, 2012
(Millions of yen)(Consolidated statements of cash flows)

Cash flows fromoperating activities

Cash flows frominvesting activities

Cash flows fromfinancing activities

595,379)(6,004)(746,093)(27,298)

191,148)
29,134)

JGAAP
Differences in the scope of consolidation
Differences in recognition and measurement
a. Securitization transactions
b. Measuring financial liabilities atamortized costs
Other
Total differences in recognition andmeasurement
IFRSs

93

(42,404)-

42,404)(18,573)-

18,573)(7,102)5,752)

2,859)(68,079)

5,752)

63,836)521,296)(767,639)

284,118)

SoftBank Corp. Consolidated Financial Report
For the nine-month period ended December 31, 2013

The adjustment of cash flows for the year ended March 31, 2013
(Millions of yen)

Cash flows fromoperating activities

Cash flows frominvesting activities

Cash flows fromfinancing activities

894,460)(919,770)

365,494)

Differences in the scope of consolidation

5,687)

41,725

20,667)

Differences in recognition and measurement
a. Securitization transactions(51,081)-

51,081)(23,571)-

23,571)(12,470)

3,901

10,664)(87,122)

3,901

85,316)

813,025)(874,144)

471,477)(Consolidated statements of cash flows)
JGAAP

b. Measuring financial liabilities atamortized costs
Other
Total differences
IFRSs

Major differences in recognition and measurement are as follows:a. Securitization transactions
Under JGAAP, securitization transactions qualifying for extinguishment of financial assets were included in cash
flows from operating activities. Under IFRSs, certain securitized receivables are recognized for securitizationtransactions that are not qualified for derecognition of financial assets and accompanying liabilities are accounted for
as borrowings. Accordingly, an increase or decrease in borrowings is included in cash flows from financing activities.
As a result, cash flows from operating activities decreased with a corresponding increase in cash flows from financing
activities.
b. Measuring financial liabilities at amortized costs
Under JGAAP, commission fees related to borrowings and corporate bonds were included in cash flows fromfinancing activities. Under IFRSs, due to measuring borrowings and corporate bonds at amortized costs, commission
fees are included in cash flows from operating activities. As a result, cash flows from operating activities decreased
with a corresponding increase in cash flows from financial activities.

94