This English translation of the financial report was prepared for reference purposes only and is qualified in its entirety by the original
Japanese version. The financial information contained in this report is derived from our unaudited consolidated financial statements
appearing in item 3 of this report.

SOFTBANK CORP.
CONSOLIDATED FINANCIAL REPORTFor the three-month period ended June 30, 2010
Tokyo, July 29, 2010

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

Net sales

Operating income

Ordinary income

Net income

Amount%Amount%Amount%Amount%Three-month period ended
June 30, 2010

¥700,840

5.2¥156,603

44.6¥126,844

61.0¥19,438(29.0)

Three-month period ended
June 30, 2009

¥666,334

2.9¥108,290

27.3¥78,79745.2¥27,383

41.4

Net income
per share－basic(yen)

Net income
per share－diluted(yen)Three-month period ended
June 30, 2010¥17.96¥17.39Three-month period ended
June 30, 2009¥25.33¥24.45(2) Financial Condition(Millions of yen; amounts less than one million yen are omitted.)

Total assets

Total equity

Equity ratio (%)

Shareholders' equity
per share (yen)As of June 30, 2010

¥4,270,968¥993,529

11.0¥434.83

As of March 31, 2010

¥4,462,875¥963,971

10.5¥434.74

Note: Shareholders’equity (consolidated)
As of June 30, 2010:
As of March 31, 2010:¥470,633 million¥470,531 million

2. Dividends(Record date)

First quarter

Fiscal year ended
March 31, 2010
Fiscal year ending
March 31, 2011
Fiscal year ending
March 31, 2011
(Forecasted)
Revision of forecasts on the dividends: No

Second quarter

Dividends per share
Third quarter

Fourth quarter

Total

(yen)

(yen)

(yen)

(yen)

(yen)

-

0.00

-

5.00

5.00

0.00

-

5.00

5.00

-

3.

Forecasts on the consolidated operation results for the fiscal year ending in March 2011 (April 1, 2010 – March 31, 2011)(Percentages are shown as year-on-year changes)(Millions of yen)

Operating income
First-half financial year¥

Full financial year

-

- (%)

¥500,000

7.3(%)

Revision of forecasts on the consolidated operation results: No

4. Others(Please refer to page 18 “2. Others” for details)(1) Significant Changes in Scope of Consolidation:No
Note: Existence or non existence of significant changes in scope of consolidation of specified subsidiaries(2) Application of simple accounting methods or special accounting methods for preparation for the consolidated financial
statements:
No
Note: Existence or non existence of application of simple accounting methods or special accounting methods for the
consolidated financial statements(3) Changes in accounting principles, procedures, disclosure methods, etc., used in the presentation of the consolidated financial
statements[1] Changes due to revisions in accounting standards:
Yes[2] Changes other than those in [1]:No
Note: Existence or non existence of changes in accounting principles, procedures, disclosure methods, etc., used in thepresentation of the consolidated financial statements(4) Number of shares issued (Common stock)[1] Number of shares issued (including treasury stock):
As of June 30, 2010:
As of March 31, 2010:

1,082,526,378 shares
1,082,503,878 shares[2] Number of treasury stock:
As of June 30, 2010:
As of March 31, 2010:

176,045 shares
174,775 shares[3] Weighted average number of common stock:
As of June 30, 2010:
As of June 30, 2009:

1,082,335,888 shares
1,081,005,310 shares* Implementation status of quarterly review proceduresThis quarterly consolidated financial report is not subject to quarterly review procedures based on Financial Instruments and Exchange Act and thereview procedures for the quarterly consolidated financial statements were being conducted when this report was disclosed.

* Note to forecasts on the consolidated operating results and other items
The forecast figures are estimated based on the information which SOFTBANK CORP. is able to obtain at the present point and assumptions which
are deemed to be reasonable. However, actual results may be different due to various factors. Please refer to page 16 “1. Qualitative Information
Regarding Three-month Period Results (3) Earnings Forecasts” for details of notes to precondition and usage for forecasts.

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the three-month period ended June 30, 2010

(Appendix)
Content
1.

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

Consolidated Results of Operations

p. 2

2.

Results by Business Segment

p. 5（Reference 1: Principal Operational Data）

p. 9（Reference 2: Capital Expenditure and Depreciation）

p. 11(2) Qualitative Information Regarding Consolidated Financial Position

p.12

1.

Assets, Liabilities and Equity

p.12

2.

Cash Flows

p.14（Reference Major Financing Activities）

2.

p. 2

p.15

(3) Earnings Forecasts

p.16(4) The SOFTBANK Group

p.17

Others(1) Significant Changes in Scope of Consolidation

p.18(2) Application of Simple Accounting Methods or Special Accounting

p.18

Methods for Preparation for the Consolidated Financial Statements(3) Changes in Accounting Principles, Procedures, Disclosure Methods, etc.,

p.18

Used in the Presentation of the Consolidated Financial Statements
3.

Consolidated Financial Statements(1) Consolidated Balance Sheets

p.19(2) Consolidated Statements of Income

p.21(3) Consolidated Statements of Cash Flows

p.22(4) Significant Doubt About Going Concern Assumption

p.24(5) Significant Changes in Shareholders` Equity

p.24(6) Basis of Presentation of Consolidated Financial Statements

p.24(7) Notes

p.25

1SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the three-month period ended June 30, 2010

1.

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

Consolidated Results of Operations<Overview of results for the first quarter of the fiscal year ending March 31, 2011 (three-month period from
April 1 to June 30, 2010)>
Reflecting steady performance at its Mobile Communications business, the SOFTBANK Group (hereafter “theGroup”) achieved a ¥34,505 million (5.2%) increase in consolidated net sales compared with the same period of theprevious fiscal year (April 1 to June 30, 2009, hereafter “year-on-year”) to ¥700,840 million. Operating income forthe three-month period ended June 30, 2010 (hereafter “the period”) increased by ¥48,313 million (44.6%) to¥156,603 million. This growth in consolidated revenue and profit was driven by earnings growth in the Mobile
Communications segment, from an increase in the number of mobile subscribers and an increase in ARPU1.
Ordinary income grew ¥48,047 million (61.0%) to ¥126,844 million. Net income declined ¥7,945 million (29.0%)
to ¥19,438 million, this was mainly due to an increase in total income taxes of ¥44,879 million.
Notes:
Definition of terms: as used in this consolidated financial report for the three-month period ended June 30, 2010, references to“the Company,” “the Group” and “the SOFTBANK Group” are to SOFTBANK CORP. and its consolidated subsidiaries except
as the context otherwise requires or indicates.
1. Average Revenue Per User.
Revenue and number of mobile phone subscribers include prepaid mobile phones and communication module service
subscribers.
For the Mobile Communications segment, the term “ARPU” used alone indicates the total of the basic monthly chargeplus voice ARPU plus data ARPU.

The main factors affecting earnings for the period were as follows:(a) Net Sales
Net sales totaled ¥700,840 million, for a ¥34,505 million (5.2%) year-on-year increase. This was mainly due to anincrease in the number of mobile subscribers and an increase in ARPU in the Mobile Communications segment.

(b) Cost of Sales
The cost of sales declined ¥10,425 million (3.3%) year-on-year to ¥307,180 million, mainly from lower
depreciation and amortization expenses in the Mobile Communications segment due to the termination of 2G
mobile phone service.

(c) Selling, General and Administrative Expenses
Selling, general and administrative expenses declined ¥3,381 million (1.4%) year-on-year to ¥237,055 million.
This was mainly due to a year-on-year decrease in sales commissions2 in the Mobile Communications segment as aresult of less handset upgrades after the termination of 2G service in March 2010, while there were more handset
upgrades to 3G service in the same period of the previous fiscal year leading up to this termination.
Note:
2. Sales commissions paid to sales agents per new subscription and upgrade purchase.

2

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the three-month period ended June 30, 2010(d) Operating Income
As a result, operating income totaled ¥156,603 million, for a ¥48,313 million (44.6%) year-on-year increase.

(e) Non-operating Income / Expenses, net
The Group recorded a net non-operating loss of ¥29,759 million, which was ¥266 million larger than the ¥29,492
million net non-operating loss in the same period of the previous fiscal year.

This was mainly ¥27,789 million ininterest expenses.

(f) Ordinary Income
Ordinary income therefore totaled ¥126,844 million, marking a ¥48,047 million (61.0%) year-on-year increase.

(g) Special Income
Special income totaled ¥926 million.

(h) Special Loss
The special loss was ¥9,606 million.

Loss on adjustment for changes of accounting standard for asset retirement

obligations of ¥7,099 million was recorded.

(i) Income Taxes
Provisions for current income taxes were ¥34,101 million, additional tax expenses of ¥26,450 million wererecorded as income taxes - correction, and provisions for deferred income taxes were ¥25,373 million. Current
income taxes increased by ¥14,244 million year-on-year, this was mainly the result of loss carryforwards under the
BB Mobile Corp. (hereafter “BB Mobile”) income taxes under consolidated tax return3 being utilized fully in theprevious fiscal year.

The income taxes - correction were recorded in response to a correction and ruling noticereceived by Yahoo Japan Corporation (hereafter “Yahoo Japan”) from the Tokyo Regional Taxation Bureau on June30, 2010.

Refer to page 28, “3. Consolidated Financial Statements – Notes Consolidated Statements of Income –4. Income taxes – corrections” for details. Yahoo Japan paid the relevant additional income taxes on July 1, 2010.
Note:
3. BB Mobile and its subsidiaries including SOFTBANK MOBILE Corp. (hereafter “SOFTBANK MOBILE”), adopt theconsolidation taxation system.

(j) Minority Interest in Net Income
Minority interests in net income totaled ¥12,800 million, primarily from profit recorded at Yahoo Japan.

(k) Net Income
As a result of the above, net income totaled ¥19,438 million, for a ¥7,945 million (29.0%) year-on-year decline.

3

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the three-month period ended June 30, 2010

The Group is strengthening its cash-flow-oriented management, and aims to reduce its ¥1,939,520 million of net
interest-bearing debt4 as of the end of March 2009 by half over three years (by the end of March 2012) and to zero
over six years (by the end of March 2015). To achieve this, the Group plans to generate an aggregate total of atleast ¥1 trillion in free cash flow5 over the three years from fiscal 2009 (period from April 1, 2009, to March 31,
2012, previous fiscal year). As a result of strong performance in the Mobile Communications segment, free cash
flow totaling ¥57,768 million was recorded during the period. Net interest-bearing debt at the end of the period
was ¥1,498,895 million.
Notes:
4. Net interest-bearing debt: interest-bearing debt - cash position.
Interest-bearing debt: short-term borrowings + commercial paper + current portion of corporate bonds + corporate bonds +long-term borrowings. Lease obligations are excluded.
This also excludes the corporate bonds (WBS Class B2 Funding Notes, issued by J-WBS Funding K.K.) with a face valueof ¥27,000 million acquired by the Company during the previous fiscal year that were issued under the whole businesssecuritization financing scheme associated with the acquisition of Vodafone K.K.
Cash position: cash and cash deposits + marketable securities recorded as current assets.
5. Free cash flow: cash flows from operating activities + cash flows from investing activities.

4

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the three-month period ended June 30, 2010

2.

Results by Business Segment

From this period the “Accounting Standard for Disclosures about Segments of an Enterprise and RelatedInformation” (ASBJ Statement No.17, March 27, 2009) and the “Guidance on the Accounting Standard forDisclosures about Segments of an Enterprise and Related Information (ASBJ Guidance No.20, May 21, 2008) areapplied. Hereafter the accounting standard and the guidance on the accounting standard applied in the same periodof the previous fiscal year will be referred to as “former standard”, while those applied in this period will be referred
to as “new standard.”
Net sales and operating income for the period are compared on a year-on-year basis, based on the new standard.

Note:
Principal operational data is shown on pages 7-8 “(Reference 1: Principal Operational Data).”(a) Mobile Communications(Millions of yen)

(New standard)(b)Three-month
Period Ended
June 30, 2010
(New standard)(c)（Reference）
Change(d)=(c)-(b)（Reference）
Change %(d)÷(b)Three-month Period Ended
June 30, 2009
(Former standard)(a)Net sales

407,304

407,285

441,078

33,793

8.3%

Operatingincome60,26060,235

102,657

42,42270.4%

・ 696,600 net subscriber additions for the period
・ ARPU6

for the period was ¥4,290, a ¥260 year-on-year increase.

Data ARPU was ¥2,250, a ¥370

year-on-year increase<Analysis of Results>
The segment’s net sales increased by ¥33,793 million (8.3%) year-on-year to ¥441,078 million.

Telecom service

revenue grew on an increase in the number of mobile subscribers combined with an increase in ARPU.

Sales

commissions decreased as a result of less handset upgrades mainly due to the termination of 2G service while there
were more handset upgrades to 3G service in the same period of the previous fiscal year leading up to thistermination in March 2010. As a result, operating income increased by ¥42,422 million (70.4%) year-on-year to¥102,657 million, as a result of an increase in net sales and decreased decrease in sales commissions etc.
Note:
6.

Rounded to the nearest ¥10.

5

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the three-month period ended June 30, 2010

<Number of Mobile Phone Subscribers>
Net subscriber additions (new subscribers minus cancellations) for the period totaled 696,6007, on continued strong
sales of iPhone8 and PhotoVision. As a result, the cumulative subscribers at the end of the period stood at
22,573,2007, increasing SOFTBANK MOBILE’s cumulative subscriber share 0.6 of a percentage point
year-on-year, to 19.9%9.
Notes:
7.

8.
9.

The number of net subscriber additions and the number of cumulative subscribers include prepaid mobile phones andcommunication module service subscribers.
Net subscriber additions for communication modules for the period totaled 169,800, and the total number ofcommunication module service subscribers as of June 30, 2010 was 707,300.
iPhone is a trademark of Apple Inc.
The iPhone trademark is used under license from Aiphone K.K.
Calculated by the Company based on Telecommunications Carriers Association statistical data.

<ARPU>
ARPU for the period rose ¥260 year-on-year to ¥4,290. The sum of basic monthly charge and voice ARPU
declined ¥120 year-on-year to ¥2,030, due to revised access charges between carriers and an increase in devices
like PhotoVision that do not have voice communication functionality. On the other hand, data ARPU rose ¥370
year-on-year to ¥2,250.

This was mainly the result of an increase in the number of data-intensive iPhone

subscribers, the termination of the non-data-intensive 2G service, and also a further increase in data
telecommunication use by non-iPhone subscribers.

<Churn Rate and Upgrade Rate>
The churn rate10 for the period was 1.02%, which was 0.03 of a percentage point lower year-on-year. There wasno longer a negative impact on churn associated with the termination of 2G service, while the number of customers
completing their installment handset payments increased and some of these customers churned.
The upgrade rate10 for the period was 1.18%, which was 0.55 of a percentage point lower year-on-year. This was
mainly due to a decrease in upgrades as a result of the termination of 2G service in March 2010.
Note:
10. Includes prepaid mobile phones and communication module service subscribers.

<Average Customer Acquisition Commission>
The average customer acquisition commission11 for the period declined ¥12,900 year-on-year to ¥37,200. Thiswas primarily the reflection of a temporary rise in the average customer acquisition commission in the same periodof the previous fiscal year as a result of corporate marketing activities. An increase in the portion of sales
represented by devices such as PhotoVision, which have a low customer acquisition commission, also contributed
to the decline.
Note:
11. Commissions (average) paid to sales agents per new subscription.
New subscriptions include prepaid mobile phones and communication modules.

6

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the three-month period ended June 30, 2010(b) Broadband Infrastructure(Millions of yen)

(New standard)(b)Three-month
Period Ended
June 30, 2010
(New standard)(c)（Reference）
Change(d)=(c)-(b)（Reference）
Change %(d)÷(b)Three-month Period Ended
June 30, 2009
(Former standard)(a)Net sales

53,80653,431

49,323(4,108)(7.7%)

Operatingincome13,903

13,779

11,696(2,083)(15.1%)<Overview of Operations>This segment’s net sales decreased by ¥4,108 million (7.7%) year-on-year to ¥49,323 million.

This is mainly

12

because the trend of decreasing revenue on a decline in the number of charged lines of ADSL service continued.
Operating income decreased by ¥2,083 million (15.1%) year-on-year to ¥11,696 million,

as a result of a decreasein net sales and an increase in sales-related expenses incurred in connection with customer acquisitions for Yahoo!
BB hikari with FLET'S13.
The cumulative number of Yahoo! BB hikari with FLET'S contracts totaled 405,000 as of the end of the period,
which combined with installed lines14 of ADSL service brought the total number of users to 4,014,000.
Notes:
12. Number of installed lines excluding customers whose basic monthly charge is free under campaigns or other promotional
initiatives.
13. A broadband connection service that combines the Internet connection service Yahoo! BB and the FLET’S HIKARI
fiber-optic connection provided by NIPPON TELEGRAPH AND TELEPHONE EAST CORPORATION (“NTT East”) and
NIPPON TELEGRAPH AND TELEPHONE WEST CORPORATION (“NTT West”). FLET’S and FLET’S HIKARI are
registered trademarks of NTT East and NTT West.
14. Number of lines for which connection construction for ADSL line at central office of NTT East or NTT West is complete.

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

(New standard)(b)Three-month
Period Ended
June 30, 2010
(New standard)(c)（Reference）
Change(d)=(c)-(b)（Reference）
Change %(d)÷(b)Three-month Period Ended
June 30, 2009
(Former standard)(a)Net sales

86,75886,75885,876(882)(1.0%)

Operatingincome

3,493

3,512

6,661

3,149

89.7%

<Overview of Operations>
The segment’s net sales decreased by ¥882 million (1.0%) year-on-year to ¥85,876 million.

The decrease ismainly a result of the continued decrease in revenue from relay connection voice services including MYLINE andinternational telephone services.

Operating income increased by ¥3,149 million (89.7%) to ¥6,661 million.

Despite the continuing decline in revenue, there was a significant profit increase as a result of decreases in lease
payments on equipment for the OTOKU Line service.

7

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the three-month period ended June 30, 2010(d) Internet Culture(Millions of yen)

(New standard)(b)Three-month
Period Ended
June 30, 2010
(New standard)(c)（Reference）
Change(d)=(c)-(b)（Reference）
Change %(d)÷(b)Three-month Period Ended
June 30, 2009
(Former standard)(a)Net sales

65,156

65,14968,405

3,255

5.0%

Operatingincome31,717

32,11335,572

3,459

10.8%

<Overview of Operations>
The segment’s net sales increased by ¥3,255 million (5.0%) year-on-year to ¥68,405 million

Growth at Yahoo

Japan was related to a year-on-year recovery in listing and display advertising and growth in Yahoo! Shopping’stransaction value. Operating income increased by ¥3,459 million (10.8%) year-on-year to ¥35,572 million. In
addition to the growth in net sales, reduced communication costs etc. and a decrease in depreciation andamortization costs as a result of continued efforts in efficient management and cost reductions contributed to theincrease in profit.

8

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the three-month period ended June 30, 2010

(Reference 1: Principal Operational Data）(a)

Mobile Communications

SoftBank mobile phones
Fiscal Year Ending
March 31, 2011

Fiscal Year Ended March 31, 2010
Q1

Q2

Q3

Q4

Full Year

Q1(Thousands)

Net additions1

323.3

360.7

350.3

209.4

1,243.7

696.6(Postpaid)

359

395

383

507

1,645

645

(Prepaid)

(36)

(34)

(33)

(297)

(401)

51

Market share2 (%)
Cumulative
subscribers1
（3G）
（2G）
Market share2
(%)

32.3

31.5

35.6

13.4

26.5

45.4

20,956.2
19,455
1,501

21,316.9
20,238
1,079

21,667.2
20,885782

21,876.6
21,876.6-

22,573.2
22,573.2
-

19.3

19.4

19.6

19.5

19.9
(Yen per month)

ARPU3(Basic monthly charge+ voice)

4,030

4,150

4,200

3,890

4,070

4,290

2,150

2,160

2,150

1,750

2,050

2,030

(Data)

1,880

1,990

2,060

2,140

2,020

2,250
(Yen)

Average acquisition
cost per subscriber4

50,10035,90037,40040,20040,50037,200(% per month)

Churn rate1

1.05

1.24

1.16

2.01

1.37

1.02

(3G postpaid)

0.87

1.07

0.99

1.28

1.06

0.99

1

1.73

1.81

1.53

1.78

1.71

1.18

Upgrade rate

Notes:
1. Includes the number of prepaid mobile phones and communication module subscribers.
2. Calculated by the Company based on Telecommunications Carriers Association statistical data.
3. Average Revenue Per User (rounded to the nearest ¥10).
Revenue and number of mobile phone subscribers include prepaid mobile phones and communication modules.
For the Mobile Communications segment, the term “ARPU” used alone indicates the total of the basic monthly chargeplus voice ARPU plus data ARPU.
4. Commissions (average) paid to sales agents per new subscription.
New subscriptions include prepaid mobile phones and communication modules.

9

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the three-month period ended June 30, 2010(b)

Broadband Infrastructure「Yahoo! BB ADSL」(Thousands)

Fiscal Year Ending
March 31, 2011

Fiscal Year Ended March 31, 2010
Q1

Q2

Q3

Q4

Full Year

Q1

Installed lines5

4,158

4,040

3,908

3,769

3,609

6

3,769

3,657

3,533

3,389

3,221

Charged lines(Yen per month)

Average user payment
per charged line7

4,260

4,260

4,250

4,200

4,210

(% per month)

2.26
Churn rate8
2.12
1.80
1.96
2.20
2.02
Notes:
5. Number of lines for which connection construction for ADSL line at central office of NTT East or NTT West is complete.
6. Number of installed lines excluding customers whose basic monthly charge is free under campaigns or other promotional
initiatives.
7. Rounded to the nearest ¥10.
8. Average ratio of customer lines with a history of payment, for which a cancellation application has been filed during therelevant period.

(c)Fixed-line TelecommunicationsOTOKU Line

(Thousands)

Fiscal Year Ending
March 31, 2011

Fiscal Year Ended March 31, 2010
Q1
Lines

Q2

1,631

Q3

1,652

Q4

Full Year

1,657

Q1

1,669

1,668
(Yen per month)

ARPU9

6,390

6,280

6,450

6,830

6,610

Note:
9. Average Revenue Per User (rounded to the nearest ¥10).

(d)Internet Culture(Millions)Fiscal Year Ending
March 31, 2011

Fiscal Year Ended March 31, 2010Yahoo! JAPAN
Total monthly pageviews10
11

Unique browsers

Q1

Q2

Q3

Q4

Full Year46,44546,37842,77946,882

48,722

229

189

197

209

224

Yahoo! Auctions
Average number of
total listed items 12
20
20
23
23
Notes:
10. Number of accesses to Yahoo! JAPAN Group websites during the last month of each quarter.
11. Number of browsers accessing a Yahoo! JAPAN service during the last month of each quarter.
12. Daily average number of items posted during the last month of each quarter.

10

Q1

22

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the three-month period ended June 30, 2010

(Reference 2: Capital Expenditure and Depreciation)13(a)

Capital Expenditure (acceptance basis)（Millions of yen）

Fiscal Year Ended March 31, 2010
Q1

Q2

Q3

Q4

32,40839,14847,921

65,291

184,770

25,987

1,588

1,590

2,095

4,068

9,343

3,319

3,710

3,939

3,436

6,893

17,9795,112Internet Culture

1,085

1,264

1,450

2,327

6,128

1,906

Others

1,571

915

678

1,528

4,693

1,216

Consolidated total

40,36446,85855,58280,109222,915

37,542

MobileCommunications
Broadband
Infrastructure
Fixed-line
Telecommunications(b)

Full Year

Fiscal Year Ending
March 31, 2011
Q1

Depreciation (excluding amortization of goodwill)（Millions of yen）

Fiscal Year Ended March 31, 2010
Q1

Q2

Q3

Q4

42,732

43,37744,65645,569176,337

36,636

4,373

4,366

4,095

4,188

17,023

4,234

8,982

8,837

8,669

8,803

35,292

9,104

Internet Culture

2,366

2,441

2,492

2,563

9,864

2,169

Others

1,353

1,243

1,401

1,427

5,426

1,445

Consolidated total

59,80960,26661,31462,553

243,944

53,590

MobileCommunications
Broadband
Infrastructure
Fixed-line
Telecommunications

Full Year

Fiscal Year Ending
March 31, 2011
Q1

Note:
13. Capital expenditure and Depreciation for the fiscal year ended March 31, 2010 is calculated based on the new standard.
Capital expenditure and Depreciation for the e-Commerce segment for the fiscal year ended March 31, 2010 is included
in “Others.”

11

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the three-month period ended June 30, 2010(2) Qualitative Information regarding Consolidated Financial Position

1.

Assets, Liabilities and Equity

Assets, liabilities, and equity at the end of the period were as follows:(Millions of yen)
As of March 31, 2010

As of June 30, 2010

YoY

YoY (%)

Total assets

4,270,968

4,462,875(191,907)(4.3%)

Total liabilities

3,277,438

3,498,903(221,464)(6.3%)

Total equity

993,529

963,971

29,5573.1%(a) Current Assets
Current assets at the end of the period totaled ¥1,512,457 million, for a ¥181,983 million (10.7%) decline from theprevious fiscal year-end. The primary components of the change were as follows:
・ Cash and deposits decreased by ¥81,282 million from the previous fiscal year-end.

Although sales operations

were favorable, cash and cash deposits decreased mainly due to the tax payment at Yahoo Japan and BB Mobile
income taxes under consolidated tax return and repayments on borrowings including the SBM loan1.
・ Notes and accounts receivable-trade decreased by ¥102,515 million.

This was mainly because of collections on

installment sales receivables from the previous fiscal year-end shopping season mainly at SOFTBANK MOBILE
and sales of installment sales receivables at SOFTBANK MOBILE.
Note:
1. The funds procured for the acquisition of Vodafone K.K. were refinanced in November 2006 via a whole businesssecuritization program.

(b) Fixed Assets
Fixed assets totaled ¥2,756,602 million at the end of the period, for a ¥9,880 million (0.4%) decrease from theprevious fiscal year-end. The primary components of the change were as follows:・ Total property and equipment decreased ¥5,603 million from the previous fiscal year-end.

A decrease of¥38,239 million mainly related to depreciation of telecommunications equipment, and increases of ¥21,900
million mainly as a result of new acquisitions of telecommunications equipment and ¥10,735 million reflecting
the application of an accounting standard for asset retirement obligations.
・ Total intangible assets decreased ¥17,121 million from the previous fiscal year-end.

This was because of adecrease in goodwill of ¥15,650 million caused by the regular amortization at SOFTBANK MOBILE andSOFTBANK TELECOM Corp.
・ Investments and other assets increased by ¥12,844 million from the previous fiscal year-end, mainly from a¥14,632 million increase in investment securities.

12

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the three-month period ended June 30, 2010(c) Current Liabilities
Current liabilities at the end of the period totaled ¥1,282,485 million, for a ¥96,393 million (7.0%) decrease fromthe previous fiscal year-end. The primary components of the change were as follows:・ Accounts payable-other and accrued expenses declined by ¥96,199 million from the previous fiscal year-end.

This was mainly because of SOFTBANK MOBILE’s payments of agency commissions for the previous fiscal
year-end shopping season and of accounts payable for equipment.
・ The current portion of

corporate bonds increased by ¥93,500 million from the previous fiscal year-end.

Transfers were made from corporate bonds under long-term liabilities in the amounts of ¥53,500 million for the
25th Unsecured Straight Corporate Bond and ¥60,000 million for the 27th Unsecured Straight Corporate Bond, as
the redemption dates came to be within one year, while the redemption of the 24th Unsecured Straight Corporate
Bond resulted in payments of ¥20,000 million.
・ Short-term borrowings decreased by ¥47,923 million from the previous fiscal year-end.

This was mainly the

result of repayments of borrowings procured via the securitization of installment sales receivables at
SOFTBANK MOBILE.
・ Income taxes payable decreased by ¥37,340 million.

This was mainly because of BB Mobile’s income tax

payments under consolidated tax return and tax payments at Yahoo Japan.

(d) Long-term Liabilities
Long-term liabilities totaled ¥1,994,953 million at the end of the period, for a ¥125,071 million (5.9%) decrease
from the previous fiscal year-end.

The primary components of the change were as follows:・ Long-term borrowings decreased by ¥65,943 million.

This was mainly because SOFTBANK MOBILE repaid¥46,988 million of its SBM loan.
・ Corporate bonds outstanding decreased by ¥63,867 million from the previous fiscal year-end.

This included a

reduction of ¥113,500 million in total for the 25th Unsecured Straight Corporate Bond and the 27th Unsecured
Straight Corporate Bond, which were transferred to current liabilities, while the issuance of the 31st and 32nd
Unsecured Straight Corporate Bonds increased the amount by a total of ¥50,000 million.

(e) Equity
Equity totaled ¥993,529 million at the end of the period, for a ¥29,557 million (3.1%) increase from the previous
fiscal year-end.

Retained earnings increased ¥9,189 million, totaling ¥52,260 million at the end of the period.

Minority interests came to ¥522,364 million, an increase of ¥29,401 million. This was mainly due to the change
in the scope consolidation of SB Asia Infrastructure Fund L.P., from an affiliate under equity method to a
consolidated subsidiary.

This change reflects the adoption of Accounting Standards Codification Topic (ASC) 810,

Consolidations formerly SFAS No.167, Amendments to FASB Interpretation No. 46 (R) (SFAS 167) applied atcertain subsidiaries of the Company in the United States of America.

13

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the three-month period ended June 30, 2010

2. Cash Flows
Cash flow activities during the period were as follows.
Cash and cash equivalents at the end of the period totaled ¥605,492 million, for a ¥82,189 million decrease from theprevious fiscal year-end.
(Millions of yen)Three-month Period Ended

Three-month Period Ended

June 30, 2009

June 30, 2010

YoY
Cash flows from operating activities

132,087

132,998

911

Cash flows from investing activities(75,511)(75,230)

281(Reference) Free cash flow

56,57657,768

1,192

Cash flows from financing activities(31,337)(140,735)(109,397)(a) Cash Flows from Operating Activities:
Net cash provided by operating activities totaled ¥132,998 million (compared with ¥132,087 million provided in
the same period of the previous fiscal year).
Income before income taxes and minority interests totaled ¥118,164 million, while non-cash items of ¥53,590
million in depreciation and amortization and ¥15,650 million in amortization of goodwill were recorded as positive.
Receivables-trade decreased by ¥106,163 million due to collections on installment sales receivables from theprevious fiscal year-end shopping season at SOFTBANK MOBILE etc., and sales of installment sales receivables
at SOFTBANK MOBILE.
year-on-year increase.

In addition, income taxes paid of ¥98,558 million were recorded for a ¥79,166 million

This was mainly due to increased income tax payments at BB Mobile’s income tax underconsolidated tax return and at Yahoo Japan.

(b) Cash Flows from Investing Activities:
Net cash used in investing activities was ¥75,230 million (compared with ¥75,511 million used in the same periodof the previous fiscal year).
Capital expenditures, mainly at telecommunications-related businesses, resulted in outlays of ¥58,689 million forproperty and equipment and intangibles. Purchases of marketable and investment securities resulted in ¥20,315
million in cash outlays.
As a result, free cash flow (the combined net cash flows from operating activities and investing activities) for theperiod was a positive ¥57,768 million (compared with a positive ¥56,576 million in the same period of the previous
fiscal year), for a year-on-year increase of ¥1,192 million.

(c) Cash Flows from Financing Activities:
Net cash used in financing activities was ¥140,735 million (compared with ¥31,337 million used in the same periodof the previous fiscal year).
Repayments of long-term borrowings totaled ¥120,184 million, outlays for the repayment of lease obligations cameto ¥49,115 million, and ¥20,404 million was used for the redemption of corporate bonds. On the other hand,
corporate bond issues generated ¥49,787 million and long-term borrowings raised ¥20,000 million.

14

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the three-month period ended June 30, 2010

(Reference)
Major Financing Activities
The major financing activities in the period were as follows:
Item
Issue bonds

Company NameSOFTBANK CORP.

DetailsstIssue of the 31 Unsecured
Straight Corporate Bond

Issue of the 32nd Unsecured
Straight Corporate Bond

Bond
redemption

SOFTBANK CORP.

Securitizationof receivables(recordedasborrowings)

SOFTBANK MOBILE Corp.

24th Series of Unsecured
Straight Bond
(Fukuoka SoftBank HAWKS
Bond)
Procurement of funds totaling¥10,000 million accompanying
securitization of mobile phone
installment sales receivables(recorded as borrowings)

Repayment of
securitization ofreceivables
Increase or
decrease in debt
(excluding
securitization ofreceivables)

SOFTBANK MOBILE Corp.

Repayment of ¥55,657 million.

SOFTBANK MOBILE Corp.

Decrease of ¥46,988 million

Yahoo Japan Corporation

Decrease of ¥10,000 million

15

Summary
Issue date: June 2, 2010
Redemption date: May 31, 2013
Procured amount: ¥25,000 million
Interest rate: 1.17%/year
Use: redemption of bonds which will
mature by the end of June 2011
Issue date: June 2, 2010
Redemption date: June 2, 2015
Procured amount: ¥25,000 million
Interest rate: 1.67%/year
Use: redemption of bonds which will
mature by the end of June 2011
Redemption date: April 26, 2010
Redeemed amount: ¥20,000 million

Procurement date: June 29, 2010
Redemption method:monthly pass-through repayment
Use: capital expenditure and repaymentof funds raised via the whole businesssecuritization financing scheme
Repayment of funds procured throughsecuritization of receivables
Repayment of funds raised via the wholebusiness securitization financing scheme

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the three-month period ended June 30, 2010(3) Earnings Forecasts
The Group is forecasting consolidated operating income of ¥500,000 million for the fiscal year ending March 31, 2011.
Consolidated net sales are subject to, among others, rapid changes in the Group’s main markets, the Internet andtelecommunications industry. There is, therefore, a possibility that new sales methods will be introduced in the future in
response to changes in the market situation, making it difficult to publicly disclose a forecast for consolidated net sales.
Forecasts for consolidated ordinary income and consolidated net income are also difficult to publicly disclose because
the performance of the Company’s various holdings of investment securities and investments via funds is subject tochanges in the market environment and other factors, making equity in earnings under the equity method and valuation
gain and loss on investment securities difficult to project.
In this market environment, it is difficult to make forecasts, and because the Group is managed with an emphasis on
full-year results, interim forecasts are not disclosed.

16

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the three-month period ended June 30, 2010

(4) The SOFTBANK GroupAs of June 30, 2010, the Group’s business segments were comprised of the following consolidated subsidiaries andequity method companies. The segments’ main businesses were as follows.
Consolidated
Subsidiaries

Equity Method
Non-consolidated
Subsidiaries andAffiliates

Mobile Communications

3

1

Broadband
Infrastructure

3-

Fixed-line
Telecommunications

2-

Provision of fixed-line telecommunications etc.
(Core companies: SOFTBANK TELECOM Corp. (Note))

Internet Culture

1210Internet-based advertising operations, e-commerce site
operations such as Yahoo! Auctions and Yahoo! Shopping
etc.
(Core company: Yahoo Japan Corporation (Note))

93

67

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

113

78

Business Segments

Reportablesegments

Others

Total

Main Business of Segment and Name of Business
Provision of mobile communication services and sale ofmobile phones accompanying the services etc.
(Core company: SOFTBANK MOBILE Corp.)
Provision of high-speed Internet connection service, IP
telephony service, and provision of content etc.
(Core company: SOFTBANK BB Corp. (Note) )Note:
Although SOFTBANK BB Corp., SOFTBANK TELECOM Corp. and Yahoo Japan Corporation are included as consolidated
subsidiaries in the Broadband Infrastructure, Fixed-line Telecommunications and Internet Culture segments, respectively,
SOFTBANK BB Corp., SOFTBANK TELECOM Corp. and Yahoo Japan Corporation operate multiple businesses andtherefore their operating results are allocated to multiple business segments.

［Listed Companies］
The Company’s five following subsidiaries were listed on domestic stock exchanges as of June 30, 2010:
Company NameYahoo Japan Corporation

Listed ExchangeTokyo Stock Exchange 1st section
Jasdaq Securities Exchange

SOFTBANK TECHNOLOGY CORP.

Tokyo Stock Exchange 1st section

Vector Inc.

Osaka Securities Exchange Hercules

ITmedia Inc.

Tokyo Stock Exchange Mothers

Carview Corporation

Tokyo Stock Exchange Mothers

17

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the three-month period ended June 30, 2010

2. Others(1) Significant Changes in Scope of Consolidation (Changes in Scope of Consolidation of Specified Subsidiaries)
There are no significant changes in scope of consolidation.
(2) Application of simple accounting methods or special accounting methods for preparation for the consolidated financial
statements
There are no applicable items.
(3) Changes in accounting principles, procedures, disclosure methods, etc., used in the presentation of the consolidated
financial statements[1] Application of accounting standard for equity method of accounting for investments“Accounting Standard for Equity Method of Accounting for Investments” (Accounting Standards Board of Japan(ASBJ) Statement No. 16, March 10, 2008) and “Practical Solution on Unification of Accounting Policies Applied to
Associates Accounted for Using the Equity Method” (Practical Issues Task Force (PITF) No. 24, March 10, 2008) wereapplied and necessary adjustments for the consolidated accounting were made for the period ended June 30, 2010. The
effect of this change is not material for the period ended June 30, 2010.
[2] Application of accounting standard for asset retirement obligations“Accounting Standard for Asset Retirement Obligations” (ASBJ Statement No. 18, March 31, 2008) and “Guidance on
Accounting Standard for Asset Retirement Obligations” (ASBJ Guidance No. 21, March 31, 2008) were applied as ofApril 1, 2010. The effect of this change in operating income and ordinary income is not material and income before
income taxes and minority interests decreased by ¥7,469 million for the period ended June 30, 2010.
1. Asset retirement obligations which are recorded in the consolidated balance sheets
The Group reasonably estimated removal costs and recorded the asset retirement obligations mainly for the corporate
head quarter building, certain data and network centers located in the rental properties under the rental contracts. Usefulperiods of 2 years to 33 years and discount rates from 0.1% to 2.3% are applied for the estimation of asset retirement
obligations.
2. Asset retirement obligations which are not recorded in the consolidated balance sheets
The Group has obligations to restore mobile phone base stations and telephone line facilities for transmission to their
original conditions under the rental contracts. However, considering business continuity, the removal of these facilities
is difficult and the possibility of executing the obligation to restore these facilities to their original conditions isextremely low, and therefore, the asset retirement obligations are not recorded at the period ended June 30, 2010.

18

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the three-month period ended June 30, 2010

3. Consolidated Financial Statements(1) Consolidated Balance Sheets(Millions of yen)
As ofJune 30, 2010

As ofMarch 31, 2010

AmountAmountASSETS
Current assets:
Cash and deposits
Notes and accounts receivable - tradeMarketable securities¥608,770¥690,053

714,034

816,550

3,569

4,342

Merchandise and finished products

39,20837,030

Deferred tax assets

63,721

74,290

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

117,320

106,733(34,168)(34,559)

1,512,457

1,694,440

Buildings and structures

75,43868,182

Telecommunications equipment

696,450

706,283

Telecommunications service lines

72,74872,983

Land

22,38522,401

Construction in progress

27,694

34,634

Other property and equipment

50,381

46,218

Total property and equipment

945,099

950,703

Goodwill

885,118

900,768

Software222,242

208,915

Other intangibles

27,90342,702

1,135,264

1,152,386

384,660

370,027

141,019

152,654

173,576

164,950(23,017)676,238
2,756,602(24,238)
663,394
2,766,483

1,908

1,951

¥4,270,968¥4,462,875

Fixed assets:
Property and equipment, net:

Intangible assets, net:

Total intangible assets
Investments and other assets:
Investment securities andinvestments in unconsolidated subsidiaries
and affiliated companies
Deferred tax assets
Other assets
Less:
Allowance for doubtful accounts
Total investments and other assets
Total fixed assets
Deferred charges
Total assets

19

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the three-month period ended June 30, 2010

Consolidated Balance Sheets(Millions of yen)
As ofJune 30, 2010

As ofMarch 31, 2010

AmountAmountLIABILITIES AND EQUITYCurrent liabilities:
Accounts payable - trade
Short-term borrowings¥146,726¥158,942

390,037

437,960

Current portion of corporate bonds
Accounts payable - otherand accrued expenses

147,900

54,400355,209451,408

Income taxes payable

63,143

100,483

Current portion of lease obligations

113,118

109,768

Other current liabilities

66,35065,914

Total current liabilities

1,282,485

1,378,878

Corporate bonds

384,656448,523

Long-term debt

1,215,642

1,281,586

Deferred tax liabilities

30,781

30,482

Liability for retirement benefits

15,51915,557

Allowance for point mileage

46,84347,215

Lease obligations

202,964

224,484

Other liabilities

98,546

72,175

Total long-term liabilities

1,994,953

2,120,024

Total liabilities

3,277,438

3,498,903

Common stock

188,771

188,750

Additional paid-in capital

213,088

213,068

Retained earnings

52,26043,071

Less: Treasury stock

(228)

(225)

Total shareholders’ equity

453,892

444,665

Unrealized gain on available-for-sale securities

33,46943,864

Deferred gain on derivatives under hedge accounting

20,062

14,528Foreign currency translation adjustments(36,791)(32,525)

Total valuation and translation adjustments

16,74025,866531

476

522,364

492,963

Long-term liabilities:

Equity:Stock acquisition rights
Minority interests
Total equity
Total liabilities and equity

20

993,529

963,971¥4,270,968¥4,462,875

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the three-month period ended June 30, 2010

(2) Consolidated Statements of Income(Millions of yen)Three-month period ended
June 30, 2009
April 1, 2009 toJune 30, 2009
AmountThree-month period ended
June 30, 2010
April 1, 2010 toJune 30, 2010
AmountNet sales
Cost of sales
Gross Profit¥666,334¥700,840

317,606

307,180

348,727

393,659

Selling, general and administrative expenses

240,437

237,055

108,290

156,603

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

118

529

383

-

-

216

Other non-operating income
Non-operating income

1,718

2,476

2,220

3,222

Interest expense
Foreign exchange loss, net
Equity in losses of affiliated companies
Other non-operating expenses
Non-operating expenses

27,49027,789-152

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

632

-

3,591

5,039

31,71332,98178,797

126,844

789

520

866

52

752

353

Special income

2,408

926

Valuation loss on investment securities
Impairment loss
Loss on adjustment for changes of accounting standard
for asset retirement obligations
Other special losses
Special loss

924

1,431

797

-

-

7,099

290

1,075

2,012

9,606

79,193

118,164

19,856

34,101-

26,45021,18925,37341,04685,925-32,238

10,76312,800¥27,383¥19,438

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

21SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the three-month period ended June 30, 2010

(3) Consolidated Statements of Cash Flows(Millions of yen)Three-month period ended
June 30, 2009

Three-month period ended
June 30, 2010

April 1, 2009 toJune 30, 2009

April 1, 2010 toJune 30, 2010

Cash flows from operating activities:
Income before income taxes and minority interests¥79,193¥118,164

Depreciation and amortization

59,80953,590

Amortization of goodwill

15,323

15,650

Impairment loss

797-

Equity in losses (earnings) of affiliated companies

632

(216)

Dilution gain from changes in equity interest, net

(767)

(518)

Valuation loss on investment securities

924

1,431

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

(866)

(52)

Foreign exchange (gain) loss, net

(461)

162

Interest and dividend income

(278)

(672)

Interest expense

27,49027,789Decrease in receivables - trade50,306106,163

Decrease in payables - trade(11,643)(14,087)(42,868)(51,314)

177,592

256,090

Adjustments for:

Changes in operating assets, and liabilities

Other, net
Sub-totalInterest and dividends received

343

652

Interest paid

(26,455)(25,185)

Income taxes paid

(19,392)(98,558)

132,087

132,998

Net cash provided by operating activities- Continued -22

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the three-month period ended June 30, 2010

Consolidated Statements of Cash Flows (Continued)(Millions of yen)Three-month period ended
June 30, 2009

Three-month period ended
June 30, 2010

April 1, 2009 toJune 30, 2009

April 1, 2010 toJune 30, 2010

Cash flows from investing activities:
Purchase of property and equipment, and intangibles
Purchase of marketable and investment securities
Proceeds from sale of marketable and investment securities¥ (76,616)¥ (58,689)(4,132)(20,315)

3,819

2,510

Acquisition of interests in subsidiaries newly consolidated,
net of cash acquired

(40)

-

Other, net

1,457

1,264

(75,511)(75,230)(23,129)(9,662)

Increase in commercial paper, net

2,000

-

Proceeds from long-term debt

80,24720,000

Repayment of long-term debt

(123,537)(120,184)

Proceeds from issuance of bonds

59,202

49,787

Redemption of bonds(2,647)(20,404)

Exercise of warrants

2,105

41

Proceeds from issuance of shares to minority shareholders

367

222

Cash dividends paid

(1,957)(4,303)

Cash dividends paid to minority shareholders
Proceeds from sale and lease back of equipment newly acquired(4,444)(9,886)

2,763

5,350

Repayment of lease obligations(21,856)(49,115)(450)(2,579)(31,337)(140,735)(354)(1,076)24,883(84,043)

126

1,919

Net cash used in investing activities
Cash flows from financing activities:
Decrease in short-term borrowings, net

Other, net
Net cash used in financing activities
Effect of exchange rate changes
on cash and cash equivalents
Net increase (decrease) in cash and cash equivalents
Increase in cash and cash equivalents due to newly consolidated
subsidiaries
Decrease in cash and cash equivalents due to exclusion ofpreviously consolidated subsidiaries
Cash and cash equivalents, beginning of the period

(807)

(64)

457,644687,681

Cash and cash equivalents, end of the period¥481,846¥605,492

23

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the three-month period ended June 30, 2010(4) Significant Doubt about Going Concern Assumption
There are no applicable items for the three-month period ended June 30, 2010.

(5) Significant Changes in Shareholder’s Equity
There are no applicable items for the three-month period ended June 30, 2010.

(6) Basis of Presentation of Consolidated Financial Statements(Items described in “2. Others (3) Changes in accounting principles, procedures, disclosure methods, etc., used in thepresentation of the consolidated financial statements” on page 18 are excluded.)
1. Changes in scope of consolidation(1) Changes in scope of consolidation for the three-month period ended June 30, 2010 are as follows:<Increase>
7 companies
Significant changes:
SB Asia Infrastructure Fund L.P. and its 6 consolidated subsidiaries<Decrease>
3 companies(2) The number of consolidated subsidiaries after the changes:
113 companies
2. Changes in scope of equity method(1) Changes in scope of equity method are as follows:<Increase>
16 companies
Significant changes:
SB Asia Infrastructure Fund L.P.’s 12 affiliates under equity method<Decrease>2 companies
Significant changes:
SB Asia Infrastructure Fund L.P.
(2) The number of non-consolidated subsidiaries and affiliated companies under the equity method after the changes:
Non-consolidated subsidiaries under the equity method: 6 companies
Affiliated companies under the equity method: 72 companies(Changes in accounting principles and procedures)
Effective April 1, 2010, certain subsidiaries of the Company that apply generally accepted accounting principles in the
United States of America adopted Accounting Standards Codification (ASC) 810, Consolidations, formerly SFAS No. 167,
Amendments to FASB Interpretation No. 46(R) (SFAS 167).
As a result of the application of the accounting standard, the scope of SB Asia Infrastructure Fund L.P. changed from anaffiliate under equity method to a consolidated subsidiary.
The effect of this change is not material for the period ended June 30, 2010.

24

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the three-month period ended June 30, 2010(7) Notes(Consolidated Balance Sheets)
1. Accumulated depreciation of property and equipment
As of March 31, 2010

As of June 30, 2010
1,077,022

1,048,584

million yen

million yen

2. Additional entrustment for debt assumption of bonds (As of June 30, 2010)
SOFTBANK MOBILE has entrusted cash for the repayment of the straight bonds listed in the following table based on debt
assumption agreements with a financial institution. The bonds are derecognized in the Company’s consolidated balance
sheets.
The trust had collateralized debt obligations (“CDO”) issued by a Cayman Islands based Special-Purpose Company (“SPC”).
The SPC contracted a credit default swap agreement secured by debt securities (corporate bonds), which referred to a certain
portion of the portfolio consisting of 160 referenced entities. Since defaults (credit events under the agreement) of more than acertain number of referenced entities occurred, ¥75,000 million in total was reduced from the redemption amount of the CDO
in April 2009 and an additional entrustment was required for the reduced amount.
As a result, for the amount required as the additional entrustment of ¥75,000 million, a long term accounts payable wasrecognized as a recognized subsequent event (Type I subsequent event) and included in “Other liabilities” of long-term
liabilities in the consolidated balance sheets, and it was recorded as special loss in the consolidated statements of income for theyear ended March 31, 2009.
As of June 30, 2010, since the maturity for the additional entrustment was within one year, the accounts payable was included
in “Accounts payable-other and accrued expenses” of current liabilities in the consolidated balance sheets.
Mizuho Corporate Bank, Ltd and the Company set up a credit line facility contract in order to support the repayments of thebonds issued by SOFTBANK MOBILE.
As of June 30, 2010
Subject Bonds

Issue date

Maturity date

Third Series Unsecured Bond

August 19, 1998

August 19, 2010

25,000Fifth Series Unsecured Bond

August 25, 2000

August 25, 2010

25,000Seventh Series Unsecured Bond

September 22, 2000

September 22, 2010

25,000

Amount of transferred bondTotal

75,000 million yen

3. Secured loans(1) Assets pledged as collateral for secured liabilities[1] For short-term borrowings and long-term debt
Assets pledged as collateral and secured liabilities by consolidated subsidiaries are as follows:
As of June 30, 2010

As of March 31, 2010

Assets pledged as collateral:
Cash and deposits

224,840

213,098

Notes and accounts receivable - trade

255,878

273,231

Buildings and structures

11,957

12,133

Telecommunications equipment

188,332

182,945

Telecommunications service lines

83

86

10,635

10,63364,97681,701Land
Investment securities and investments in unconsolidated
subsidiaries and affiliated companies
Investments and other assets - other assets

17,22515,157

Total

771,861

25

million yen

791,054

million yen

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the three-month period ended June 30, 2010

As of June 30, 2010

As of March 31, 2010

Secured liabilities:
Accounts payable - trade

1,119

1,674

Short-term borrowings

1,202

1,928

Long - term debt

1,086,707

1,035,860

Total

1,038,182

million yen

1,090,310

million yen

Consolidated subsidiaries shares owned by SOFTBANK MOBILE, SOFTBANK MOBILE shares owned by BB Mobile
Corp. and BB Mobile Corp. shares owned by Mobiletech Corporation are pledged as collateral for long-term debt (totaled to¥986,702 million and ¥939,714 million, as of March 31, 2010 and June 30, 2010, respectively) resulting from the acquisition
of SOFTBANK MOBILE, in addition to the assets pledged as collateral above.
[2] For borrowings of investee
Assets pledged as collateral for third party’s liability are as follows:
As of June 30, 2010
Assets pledged as collateral:
Investment securities and investments in unconsolidated
subsidiaries and affiliated companies

2,000

million yen

As of March 31, 2010

2,000

million yen(2) Borrowings by securitization of receivables[1] The securitization of installment sales receivable of SOFTBANK MOBILE
Cash proceeds through the securitization of installment sales receivables of SOFTBANK MOBILE, excluding that
qualify for derecognition criteria of a financial asset, were included in “Short-term borrowings” (¥175,359 million and¥147,276 million, as of March 31, 2010 and June 30, 2010, respectively) and “Long-term debt” (¥44,454 million and¥26,879 million, as of March 31, 2010 and June 30, 2010, respectively). The amounts of the senior portion of the
securitized installment sales receivables (¥219,813 million and ¥174,156 million, as of March 31, 2010 and as of June30, 2010, respectively) were included in “Notes and account receivable-trade”, along with the subordinated portion heldby the SOFTBANK MOBILE. The trustee raised the funds through asset backed loans based on the receivables.
[2] The securitization of receivables for ADSL services of SOFTBANK BBSOFTBANK BB transferred its senior portion of the securitized present and future receivables for ADSL services* to a
SPC (a consolidated subsidiary), and the SPC raised the funds through asset backed loans based on the receivables(¥10,504 million and ¥8,032 million, as of March 31, 2010 and June 30, 2010, respectively) from a financial institution.
Cash proceeds through the asset backed loans are included in the “Short-term borrowings” (¥6,660 million and ¥6,660
million, as of March 31, 2010 and June 30, 2010, respectively) and “Long-term debt” (¥3,844 million, and ¥1,372
million, as of March 31, 2010 and June 30, 2010, respectively).
Note:* A certain portion of present and future (through March 2012) receivables realized through the ADSL services
provided by SOFTBANK BB.

26

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the three-month period ended June 30, 2010

(3) Borrowings by security lending agreements
Cash receipts as collateral from financial institutions, to whom the Company lent a portion of shares in its subsidiary under
security lending agreements are presented as follows:
As of June 30, 2010
Short-term borrowings

114,000

million yen

As of March 31, 2010
114,000

million yen(4) Others
A consolidated subsidiary purchased assets by installments, and the assets of which ownership was not transferred to theconsolidated subsidiary and its installment payables are as follows:
As of June 30, 2010

As of March 31, 2010

Assets of which ownership is not transferred:
57

35

Telecommunications equipment

18,98916,710Construction in progress

2,161

1,538

Software

7,498

4,755

Other intangibles

463

12

Investments and other assets - other assets
Total

368

240

Buildings and structures

29,539million yen

As of June 30, 2010

23,292

million yen

As of March 31, 2010

Installment payables:
Accounts payable - other and accrued expenses

5,352

4,148

Long term liability - other liabilities
Total

26,76020,741

32,11327

million yen

24,889million yen

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the three-month period ended June 30, 2010

(Consolidated Statements of Income)1.

Selling, general and administrative expenses
Three-month period ended
June 30, 2009
119,364 million yen

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

3,608

Three-month period ended
June 30, 2010
114,135 million yen
3,755

2. Unrealized appreciation on valuation of investments and loss on sale of investments at subsidiaries in the United Statesof America, net
Certain subsidiaries of the Company in the United States of America qualify as investment companies under the provisions set
forth in Financial Services – Investment Companies of the FASB Accounting Standards Codification Topic 946(ASC 946) andaccount for investment securities in accordance with ASC 946.
The net changes in the fair value of the investments are recorded as unrealized appreciation on valuation of investments andloss on sale of investments at subsidiaries in the U.S., net and loss on sale of investments, computed based on the acquisition
cost, is also included in this account. The unrealized appreciation on valuation of investments and loss on sale of investments
included in unrealized appreciation on valuation of investments and loss on sale of investments at subsidiaries in the U.S., net in
the consolidated statements of income are as follows:
Three-month period ended
June 30, 2009
Unrealized appreciation on valuation of investment
at subsidiaries in the U.S.,net
Loss on sale of investments
at subsidiaries in the U.S.,net
Total

Three-month period ended
June 30, 2010

1,340

179

(473)

(127)

866 million yen

52

million yen

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

4. Income taxes – corrections (For the period ended June 30, 2010)Yahoo Japan received a correction notice from Tokyo Regional Taxation Bureau on June 30, 2010. Yahoo Japan acquired all
the shares of SOFTBANK IDC Solutions Corp. from the Company in February 2009 and merged it in March 2009. At themerger, loss carryforwards held by SOFTBANK IDC Solutions Corp. were carried and utilized by Yahoo Japan. The noticecorrects this tax treatment insisting that the treatment was to reduce Yahoo Japan’s income taxes inappropriately. Additional
income taxes of ¥ 26,450 million were recorded as income taxes - correction for the period ended June 30, 2010 and were paidon July 1, 2010. Yahoo Japan will submit a request for reconsideration to the national tax tribunal, separately bring legal suit
depending on the situation, and thoroughly argue its position on this matter.

28

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the three-month period ended June 30, 2010

(Consolidated Statements of Cash Flows)
1. Reconciliation of cash and cash equivalents to the amounts presented in the accompanying consolidated balance sheets
As of June 30, 2009
million yen

As of June 30, 2010

Cash and deposits

482,799

Marketable securities

4,057

3,569

Time deposits with original maturity over three months(1,383)(3,641)

Stocks and bonds with original maturity over three months(3,626)(3,205)

Cash and cash equivalents

481,846

million yen

608,770 million yen

605,492 million yen

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

3. Proceeds from sale and lease back of equipment newly acquired
Once SOFTBANK MOBILE and others purchase telecommunications equipment for the purpose of assembly, installation andinspection, SOFTBANK MOBILE and others sell the equipment to lease companies for sale and lease back purposes. The
leased asset and lease obligation are recorded in the consolidated balance sheets.
The cash outflows from the purchase of the equipment from vendors are included in “Purchase of property and equipment, andintangibles” and the cash inflows from the sale of the equipment to lease companies are included in “Proceeds from sale andlease back of equipment newly acquired.”29

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the three-month period ended June 30, 2010

(Segment Information)
1. Business segment information
For the three month period ended June 30, 2009

(Millions of yen)

MobileBroadband

Fixed-line

InternetCommunications

Infrastructure

Telecommunications

Culture(1) Customers¥405,095¥52,674¥76,467¥64,131(2) Inter-segment

2,209

1,131

10,291

Total

407,304

53,806

Operating income (loss)¥60,260¥13,903

e-Commerce

Elimination

Others

Total

Consolidated¥51,788¥16,175¥666,334¥-¥666,334

1,024

2,424

4,491

21,572(21,572)-

86,75865,15654,213

20,667

687,906(21,572)

666,334¥3,493¥31,717¥940¥(880)¥109,435¥(1,145)¥108,290

or Corporate

Net sales

Notes:
1. Business segments are categorized primarily based on the nature of business operations, type of services, and similarity of sales channels
which the SOFTBANK Group uses for its internal management purposes.
2. The main business segments are as follows:
Mobile Communications: Provision of mobile communication services and sale of mobile phones accompanying the services etc.
Broadband Infrastructure: Provision of ADSL and fiber-optic high-speed Internet connection service, IP telephony service, and provision ofcontents etc.
Fixed-line Telecommunications: Provision of fixed-line telecommunications service etc.
Internet Culture: Internet-based advertising operations, portal business, and auction business etc.
e-Commerce: Distribution of PC software and such hardware as PCs and peripherals, enterprise solutions, and e-commerce businesses,
including business transaction platform (B2B) and consumer-related e-commerce (B2C) etc.
Others: Technology Services, Media & Marketing, Overseas Funds, and other businesses
2. Geographic segment information
For the three month period ended June 30, 2009

(Millions of yen)North
AmericaJapan

OthersEliminationor corporate

Total

Consolidated

Net sales(1) Customers¥664,275¥259¥1,799¥666,334¥-¥666,334

95

-

-

95

(95)

-

Total

664,370

259

1,799

666,429(95)

666,334

Operating income (loss)¥110,222¥(315)¥(178)¥109,729¥(1,438)¥108,290(2) Inter-segment

Notes:
1. Net sales by geographic region are recognized based on geographic location of the operation.
2. Significant countries in each region are as follows:
North America: United States of America and Canada
Others: Europe, Korea, China, Singapore, and others
3. Overseas sales
Disclosure of overseas sales for the three-month period ended June 30, 2009 was omitted because the total overseas sales were less than
10% of total consolidated sales.

30

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the three-month period ended June 30, 2010

4. Reportable segment information(Additional Information)“Accounting Standard for Disclosures about Segments of an Enterprise and Related information” (ASBJ Statement No. 17, March 27,2009) and “Guidance on Accounting Standard for Disclosures about Segments of an Enterprise and Related information” (ASBJ
Guidance No. 20, March 21, 2008) were applied for the period ended June 30, 2010.
(1) Over view of reportable segments
Reportable segments of the Company are components of an entity about which separate financial information is available and suchinformation is evaluated regularly by the board of directors in deciding how to allocate resources and in assessing performance.
The Company as a pure holding company assigns core operating companies to primary businesses. The core operating companies
develop comprehensive business strategies for the products and services and perform business activities.
Accordingly, the Company’s segments are separated based on the products and services provided by the core operating companies,
and 4 segments, “Mobile Communications,” ”Broadband Infrastructure,” ”Fixed-line Telecommunications,” and “Internet Culture”
are treated as reportable segments.
“Mobile Communications” business provides mobile communication services and sale of mobile phones accompanying the services.
“Broadband Infrastructure” business provides high-speed Internet connection service, IP telephony service, and contents. “Fixed-line
Telecommunications” business provides fixed-line telecommunication services. “Internet Culture” business provides Internet-based
advertising operations, e-commerce site operations such as Yahoo! Auctions and Yahoo! Shopping.
(2) Net sales and segment income or loss of reportable segments
For the three month period ended June 30, 2010

(Millions of yen)

Reportable segments

Reconciliations to

Amounts in consolidated

consolidated statement

statement of incomeof income (Note2)（Note3）

Other
Total
（Note１）

MobileBroadband

Fixed-line

InternetCommunications

Infrastructure

Telecommunications

Culture¥438,520¥48,552¥73,199¥67,142¥627,414¥73,425¥700,840¥-¥700,840

2,558

770

12,677

1,262

17,268

8,457

25,726(25,726)-

Total

441,078

49,32385,876

68,405644,683

81,882

726,566(25,726)

700,840

Segment income¥102,657¥11,696¥6,661¥35,572¥156,587¥2,562¥159,150¥(2,546)¥156,603

Subtotal

Net sales
Customers
Inter-segment

Notes:
1. The PC software and peripherals distribution business and Fukuoka SOFTBANK HAWKS related business are included in “Other.”
2. Amounts in the column “Reconciliations to consolidated statement of income” of ¥(2,546) represents elimination of intersegment
transactions and expenses of the corporate division of the Company, which totaled ¥537 million and ¥(3,084) million, respectively.
3. Segment income is adjusted with operating income in the consolidated statements of income.

31

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the three-month period ended June 30, 2010

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

As of June 30, 2010

As of March 31, 2010

141,063(72,133)

141,093(67,776)(33,232)
35,698million yen(33,232)
40,084

million yen

million yen

46,730(11,909)34,820

million yen

million yen

16,113(10,223)(1,242)
4,647

million yen

46,729(12,493)
34,236
15,879(10,635)(1,242)
4,002

9,070
(6,669)
(290)

9,045
(7,060)(290)

Net leased property

1,695

Acquisition cost
Accumulated depreciation
Accumulated impairment loss

212,718(102,321)(34,765)

Net leased property

75,631

million yen

2,110

million yen

Total

32

213,007(96,579)(34,765)
million yen

81,662

million yen

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the three-month period ended June 30, 2010

Long-term prepaid expenses relating to a lease contract, in which the contract term and payment term are different, as ofMarch 31, 2010 and June 30, 2010 were ¥25,157 million and ¥25,971 million, respectively and are included in “Other
assets” of investments and other assets in the consolidated balance sheets. Current portion of long-term prepaid expenses
related to the lease contract in the amount of ¥670 million and ¥624 million as of March 31, 2010 and June 30, 2010 are
included in “Other current assets” in the consolidated balance sheets.
(2) Obligations under finance lease at the end of each period:
As of June 30, 2010

Due within one year
Due after one year
Total
Balance of allowance for impairment loss on
leased property

24,84073,25198,091
8,987

As of March 31, 2010

million yen

26,191
79,431
105,623

million yen

million yen

10,776

million yen(3) Lease payments, payment of the lease obligation for impaired leased property, amounts equivalent to depreciation, andinterest expense for each period:
Three-month period ended
June 30, 2009

9,584

Lease payments
Payment of the lease obligation for impaired
leased property
Depreciation expense
Interest expenseThree-month period ended
June 30, 2010

million yen

7,802 million yen

2,171

1,788

6,137
2,348

5,032
1,980

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

33

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the three-month period ended June 30, 2010

(Investment in Debt and Equity Securities)
As of March 31, 2010
1. Held-to-maturity debt securities(Millions of yen)

As of March 31, 2010

Classification

Carrying Amount

Fair Value

Differences

Corporate bonds¥1,499¥1,344¥(155)

Total¥1,499¥1,344¥(155)

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

As of March 31, 2010

Classification

Carrying Amount

Investment Cost

(1)Equity securities¥101,095¥30,351¥70,743(2)Debt securities

28,957

26,673

2,283(3)Others

3,408

3,064

344

¥133,460¥60,089¥73,371

Total

Differences

Note: Investment securities held by certain subsidiaries in the United States of America which apply ASC 946 are described in
below “3. Investment securities evaluated at fair value under the provisions set forth in Financial Services– Investment
Companies of the FASB Accounting Standards Codification.”

3. Investment securities evaluated at fair value under the provisions set forth in Financial Services – Investment Companiesof the FASB Accounting Standards Codification
Certain subsidiaries of the Company in the United States of America qualify as investment companies under the provisions set
forth in Financial Services – Investment Companies of the FASB Accounting Standards Codification Topic 946(ASC 946)
and account for investment securities in accordance with ASC 946.
The carrying amounts of the investment securities at fair value recorded in the consolidated balance sheets as of March 31,
2010 were as follows:

Carrying amounts of investment securities at fair value :34

As of March 31, 2010
15,316 million yen

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the three-month period ended June 30, 2010

As of June 30, 2010
1. Held-to-maturity debt securities(Millions of yen)

As of June 30, 2010

Classification

Carrying Amount

Fair Value

Differences

Corporate bonds

¥999

¥849

¥(150)

Total

¥999

¥849

¥(150)

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

As of June 30, 2010

Classification

Carrying Amount

Investment Cost

(1)Equity securities¥91,473¥31,163¥60,310(2)Debt securities

29,55527,0862,468(3)Others

3,047

3,103

(55)

¥124,077¥61,353¥62,723

Total

Differences

Note: Investment securities held by certain subsidiaries in the United States of America which apply ASC 946 are described in
below “3. Investment securities evaluated at fair value under the provisions set forth in Financial Services– Investment
Companies of the FASB Accounting Standards Codification.”

3. Investment securities evaluated at fair value under the provisions set forth in Financial Services – Investment Companiesof the FASB Accounting Standards Codification
Certain subsidiaries of the Company in the United States of America qualify as investment companies under the provisions set
forth in Financial Services – Investment Companies of the FASB Accounting Standards Codification Topic 946(ASC 946)
and account for investment securities in accordance with ASC 946.
The carrying amounts of the investment securities at fair value recorded in the consolidated balance sheets as of June 30, 2010
were as follows:

Carrying amounts of investment securities at fair value :35

As of June 30, 2010
14,620 million yen

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the three-month period ended June 30, 2010

(Per Share Data)
1.

Shareholders’ equity per share
As of

As of

June 30, 2010

March 31, 2010

Shareholders’ equity per share (yen)2.

¥434.83¥434.74

Three-month period ended

Three-month period ended

June 30, 2009

June 30, 2010

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

Net income per share – primary (yen)

25.33

17.96

Net income per share – diluted (yen)

24.45

17.39

Three-month period ended

Three-month period ended

June 30, 2009

June 30, 2010

Basic data for computation of the per share data
1. Net income (in millions of yen)
2. Amounts not allocated to shareholders(in millions of yen)
3. Net income allocated to common stock outstanding(in millions of yen)
4. Weighted average number of common stock outstanding
during each period (unit: thousand of shares)
5. Adjustment for net income used to calculate net income per share – diluted(in millions of yen)
– Interest expense (net of tax)
– Adjustments for net income used to calculate diluted net income
per share in consolidated subsidiaries and affiliated companies–Total6. Increase of common stock used to calculate net income per share– diluted(unit: thousand of shares)
7. Significant changes in residual securities which do not dilute net income
per share36-

27,383

19,438--27,383

19,4381,081,005

1,082,335

240

240

(7)

(21)

233

219

48,582

48,299-