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 six-month period ended September 30, 2010
Tokyo, October 28, 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%Six-month period ended
September 30, 2010

¥1,465,021

8.6¥315,521

36.8¥253,843

46.3¥76,8398.6

Six-month period ended
September 30, 2009

¥1,349,275

1.5¥230,621

28.1¥173,538

47.9¥70,750

72.1

Net income
per share－basic(yen)

Net income
per share－diluted(yen)

Six-month period ended
September 30, 2010¥70.99¥68.32Six-month period ended
September 30, 2009

¥65.41¥63.02(2) Financial Condition(Millions of yen; amounts less than one million yen are omitted.)

Total assets

Total equity

Equity ratio (%)

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

¥4,505,013¥1,045,348

11.5¥476.86

As of March 31, 2010

¥4,462,875¥963,971

10.5¥434.74

Note: Shareholders’equity (consolidated)
As of September 30, 2010:
As of March 31, 2010:¥516,132 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
Full financial year

¥500,000

7.3(%)

Revision of forecasts on the consolidated operation results: No

4. Others(Please refer to page 19 “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 September 30, 2010:
As of March 31, 2010:

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

177,430 shares
174,775 shares[3] Weighted average number of common stock:
As of September 30, 2010:
As of September 30, 2009:

1,082,342,821shares
1,081,663,503 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 17 “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 six-month period ended September 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.15（Reference: Major Financing Activities）

2.

p. 2

p.16

(3) Earnings Forecasts

p.17(4) The SOFTBANK Group

p.18

Others(1) Significant Changes in Scope of Consolidation

p.19(2) Application of Simple Accounting Methods or Special Accounting

p.19

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

p.19

Used in the Presentation of the Consolidated Financial Statements
3.

Consolidated Financial Statements(1) Consolidated Balance Sheets

p.20(2) Consolidated Statements of Income

p.22(3) Consolidated Statements of Cash Flows

p.24(4) Significant Doubt About Going Concern Assumption

p.26(5) Significant Changes in Shareholders` Equity

p.26(6) Basis of Presentation of Consolidated Financial Statements

p.26(7) Notes

p.27

1

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the six-month period ended September 30, 2010

1.

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

Consolidated Results of Operations<Overview of results for the interim period of the fiscal year ending March 31, 2011 (six-month period from
April 1 to September 30, 2010)>
Reflecting strong performance at its Mobile Communications business, the SOFTBANK Group (hereafter “theGroup”) recorded a ¥115,745 million (8.6%) increase in net sales compared with the same period of the previous
fiscal year (April 1 to September 30, 2009, hereafter “year-on-year”) to ¥1,465,021 million. Operating income forthe six-month period ended September 30, 2010 (hereafter “the interim period”) increased by ¥84,899 million(36.8%) to ¥315,521 million.

This growth in consolidated revenue and profit was driven by strong growth in thenumber of subscribers combined with increases in ARPU1 and the number of mobile handsets shipped2 at the Mobile
Communications segment.

Ordinary income grew ¥80,305 million (46.3%) to ¥253,843 million, and net income

increased ¥6,088 million (8.6%) to ¥76,839 million.
Notes:
Definition of terms: as used in this consolidated financial report for the six-month period ended September 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 .
2. Handsets shipped: handsets shipped (sold) to agents.

The main factors affecting earnings for the interim period were as follows:(a) Net Sales
Net sales totaled ¥1,465,021 million, for a ¥115,745 million (8.6%) year-on-year increase. This was mainly due
to an increase in revenue at the Mobile Communications segment on strong growth in the number of subscribers
combined with increases in ARPU and the number of mobile handsets shipped.

(b) Cost of Sales
Cost of sales rose ¥16,144 million (2.5%) year-on-year to ¥665,496 million.

This was mainly due to higher costof goods on the increase in the number of handsets shipped, while depreciation and amortization expenses relating
to the 2G mobile phone service decreased, due to termination of this service in March 2010, at the Mobile
Communications segment.

(c) Selling, General and Administrative Expenses
Selling, general and administrative expenses grew ¥14,701 million (3.1%) year-on-year to ¥484,003 million. Thiswas mainly because of increased sales commissions3 associated with the increase in the number of mobile handsets
sold4 at the Mobile Communications segment.
Notes:
3. Sales commissions paid to sales agents per new subscription and upgrade purchase.
4. Handsets sold: handsets sold to customers upon new subscription and handset upgrade.

2

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the six-month period ended September 30, 2010(d) Operating Income
As a result, operating income totaled ¥315,521 million, for a ¥84,899 million (36.8%) year-on-year increase.

The

operating margin showed a substantial improvement at 21.5%, an increase of 4.4 of a percentage point
year-on-year.

(e) Non-operating Income / Expenses, net
The Group recorded a net non-operating loss of ¥61,678 million, which was ¥4,594 million larger than the ¥57,083
million net non-operating loss in the same period of the previous fiscal year. This was mainly due to the recordingof ¥54,783 million in interest expenses.

(f) Ordinary Income
Ordinary income therefore totaled ¥253,843 million, for a ¥80,305 million (46.3%) year-on-year increase.

(g) Special Income
Special income totaled ¥6,903 million, the main item being a ¥4,915 million gain on sale of investment securities.

(h) Special Loss
The special loss was ¥14,240 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 ¥95,701 million, additional tax expenses of ¥26,450 million wererecorded as income taxes - correction, and provisions for deferred income taxes were ¥18,503 million. Current
income taxes increased by ¥46,878 million year-on-year, mainly as a result of loss carryforwards under the BB
Mobile Corp. (hereafter “BB Mobile”) income taxes under consolidated tax return5 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.

Please refer to page 30, “3. Consolidated Financial Statements – (7) Notes Consolidated Statements ofIncome – 4. Income taxes – corrections” for details. Yahoo Japan paid the relevant additional income taxes on
July 1, 2010.
Note:
5. 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 ¥29,012 million, primarily from profit recorded at Yahoo Japan and SB
Asia Infrastructure Fund L.P. which became a consolidated subsidiary from the three-month period ended June 30,2010 (hereafter “the first quarter”).

3

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the six-month period ended September 30, 2010(k) Net Income
As a result of the above, net income increased ¥6,088 million (8.6%) year-on-year to ¥76,839 million.

The Group is strengthening its cash-flow-oriented management, and aims to reduce its ¥1,939,520 million of net
interest-bearing debt6 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 flow7 over the three years from fiscal 2009 (period from April 1, 2009, to March 31,2012). As a result of a strong performance in the Mobile Communications segment, free cash flow totaling¥219,617 million was recorded during the interim period. Net interest-bearing debt at the end of the interim
period was ¥1,455,061 million.
Notes:
6. 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 not included.
This excludes the corporate bonds (WBS Class B2 Funding Notes, issued by J-WBS Funding K.K.) with a face value of¥27,000 million acquired by the Company during the previous fiscal year that were issued under the whole businesssecuritization financing scheme associated with the acquisition of Vodafone K.K.
Cash position: cash and cash deposits + marketable securities recorded as current assets (excludes Yahoo! Inc. shares heldby a subsidiary of the Company in the United States of America).
7. Free cash flow: cash flows from operating activities + cash flows from investing activities.

4

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the six-month period ended September 30, 2010

2.

Results by Business Segment

The “Accounting Standard for Disclosures about Segments of an Enterprise and Related Information” (ASBJ
Statement No.17, March 27, 2009) and the “Guidance on the Accounting Standard for Disclosures about Segments ofan Enterprise and Related Information (ASBJ Guidance No.20, March 21, 2008) were applied commencing from thefirst quarter. Hereafter the accounting standard and the guidance on the accounting standard applied in the same
period of the previous fiscal year are referred to as the “former standard”, while those applied from the first quarterare referred to as the “new standard.”
Net sales and operating income for the interim period are compared on a year-on-year basis, based on the newstandard.

Note:
Principal operational data is shown on pages 9-10 “(Reference 1: Principal Operational Data).”(a) Mobile Communications(Millions of yen)Six-month
Period Ended
September 30,
2010

Six-month Period Ended
September 30, 2009
(Former standard)(New standard)(New standard)

(a)

(b)

(c)

（Reference）
Change(d)=(c)-(b)（Reference）
Change %(d)÷(b)Net sales

832,193

832,156

940,044

107,888

13.0%

Operating income

131,776

131,734

207,20375,46957.3%

8・ 1,597,600 net subscriber additions
・ ARPU10for the interim period

9

for the second quarter was ¥4,300, a ¥150 year-on-year11 increase.

Out of this data ARPU

amounted to ¥2,290, a ¥300 year-on-year increase
Notes:
8.

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 interim period totaled 364,000, which included an increase of
194,200 in the second quarter.
9. The three-month period ended September 30, 2010 (from July to September 2010).
10. Average Revenue Per User (rounded to the nearest ¥10).
Revenue and number of mobile phone subscribers include prepaid mobile phones and communication module service
subscribers.
For the Mobile Communications segment, the term “ARPU” used alone indicates the total of the basic monthly chargeplus voice ARPU plus data ARPU.
11. The three-month period ended September 30, 2010 (from July to September 2009).

<Analysis of Results>
The segment’s net sales increased by ¥107,888 million (13.0%) year-on-year to ¥940,044 million.

Growth inrevenue was driven by strong customer acquisitions combined with increases in ARPU and the number of mobile
handsets shipped. Operating income increased by ¥75,469 million (57.3%) year-on-year to ¥207,203 million.

5

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the six-month period ended September 30, 2010

<Number of Mobile Phone Subscribers>
Net subscriber additions (new subscribers minus cancellations) for the interim period totaled 1,597,600, of which
901,000 net subscriber additions were added in the second quarter. This was primarily the result of continued
strong sales of iPhone12. As a result, the cumulative number of subscribers13 at the end of the interim period stoodat 23,474,200, increasing SOFTBANK MOBILE’s cumulative subscriber share by 0.9 of a percentage point
year-on-year, to 20.3%14.
Notes:
12. iPhone is a trademark of Apple Inc.
The iPhone trademark is used under license from Aiphone K.K.
13. The number of net subscriber additions and the number of cumulative subscribers include prepaid mobile phones andcommunication module service subscribers.
The cumulative number of communication module service subscribers as of September 30, 2010 was 901,500.
14. Calculated by the Company based on Telecommunications Carriers Association statistical data.

<ARPU>
ARPU for the second quarter rose ¥150 year-on-year to ¥4,300. Out of this the sum of the basic monthly charge
and voice ARPU declined ¥150 year-on-year to ¥2,020, mainly reflecting an increase in devices like PhotoVisionthat do not have voice communication functionality and revised access charges between carriers.

On the other

hand, data ARPU rose ¥300 year-on-year to ¥2,290. This was mainly the result of an increase in the number ofdata-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 rate15 for the second quarter was 0.96%, which was 0.28 of a percentage point lower year-on-year.

This

was primarily because the termination of the 2G service ceased to be a factor causing an increase in the churn rate,
combined with a decline in the churn of customers who have completed their installment handset payments.
The upgrade rate15 for the second quarter was 1.67%, which was 0.14 of a percentage point lower year-on-year.
The launch of iPhone 4 in June 2010 led to more upgrades but this impact was outweighed by the fact that thetermination of the 2G service in March 2010 no longer had an increase impact.
Note:
15. Calculation includes prepaid mobile phones and communication module service subscribers in the number of subscribers,
churn and upgrades respectively.

<Average Customer Acquisition Commission>
The average customer acquisition commission16 for the second quarter rose ¥1,600 year-on-year to ¥37,500.
Note:
16. Average commissions paid to sales agents per new subscription.
New subscriptions include prepaid mobile phones and communication modules.

6

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the six-month period ended September 30, 2010(b) Broadband Infrastructure(Millions of yen)Six-month
Period Ended
September 30,
2010

Six-month Period Ended
September 30, 2009
(Former standard)(New standard)(New standard)

(a)

(b)

(c)

（Reference）
Change(d)=(c)-(b)（Reference）
Change %(d)÷(b)Net sales

105,537

104,795

97,370(7,425)(7.1%)

Operating income

27,23027,00022,700(4,300)(15.9%)<Overview of Operations>
The segment’s net sales decreased by ¥7,425 million (7.1%) year-on-year to ¥97,370 million. This was mainly
because the trend of decreasing revenue on a decline in the number of charged lines17 for the ADSL service
continued. Operating income decreased by ¥4,300 million (15.9%) year-on-year to ¥22,700 million. In addition
to the decrease in net sales, customer acquisitions for Yahoo! BB hikari with FLET'S18 led to an increase insales-related expenses.
Net subscriber additions for Yahoo! BB hikari with FLET'S for the interim period totaled 338,000, which included anincrease of 170,000 in the second quarter, bringing the cumulative number of contracts at the end of the interim
period to 575,000. Combined with installed lines19 for the ADSL service, this brought the total number of users to
4,032,000.
Notes:
17. Number of installed lines excluding customers whose basic monthly charge is free under promotion campaigns or otherpromotional initiatives.
18. 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.
19. Number of lines for which connection construction for ADSL line at central office of NTT East or NTT West is complete.

7

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the six-month period ended September 30, 2010(c) Fixed-line Telecommunications(Millions of yen)Six-month
Period Ended
September 30,
2010

Six-month Period Ended
September 30, 2009
(Former standard)(New standard)(New standard)

(a)

(b)

(c)

（Reference）
Change(d)=(c)-(b)（Reference）
Change %(d)÷(b)Net sales

172,609

172,609

172,887277

0.2%

Operating income

7,830

7,867

13,603

5,736

72.9%

<Overview of Operations>
The segment’s net sales increased by ¥277 million (0.2%) year-on-year to ¥172,887 million. OTOKU Line saw anincrease in revenue but the decrease in revenue from relay connection voice services including MYLINE, and frominternational telephone services continue resulting in this minor increase. Operating income increased by ¥5,736
million (72.9%) to ¥13,603 million.

This was mainly due to decreases in lease payments on equipment for theOTOKU Line service.

(d) Internet Culture(Millions of yen)Six-month
Period Ended
September 30,
2010

Six-month Period Ended
September 30, 2009
(Former standard)(New standard)(New standard)

(a)

(b)

(c)

（Reference）
Change(d)=(c)-(b)（Reference）
Change %(d)÷(b)Net sales

131,129

131,093

137,465

6,371

4.9%

Operating income

64,15464,936

71,640

6,703

10.3%

<Overview of Operations>
The segment’s net sales increased by ¥6,371 million (4.9%) year-on-year to ¥137,465 million.

Net sales at Yahoo

Japan grew mainly on a year-on-year increase in listing and display advertising. Operating income increased by¥6,703 million (10.3%) year-on-year to ¥71,640 million.

In addition to the growth in net sales, this was also theresult of a decrease in communications expenses and depreciation and amortization costs, etc.

8

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

Q2(Thousands)

Net additions1

323.3

360.7

350.3

209.4

1,243.7

696.6

901.0

(Postpaid)

359.5

394.9

383.3

506.8

1,644.5

645.3

833.6

(Prepaid)(36.2)(34.2)(33.0)(297.4)(400.8)

51.3

67.4

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

32.3

31.5

35.6

13.4

26.5

45.4

53.5

20,956.2
19,455.0
1,501.2

21,316.9
20,237.7
1,079.2

21,667.2
20,885.4
781.8

21,876.6
21,876.6-

22,573.2

23,474.2

22,573.2-

23,474.2-

Market share2 (%)

19.3

19.4

19.6

19.5

19.9

20.3
(Yen per month)

ARPU3(Basic monthly
charge + voice)

4,030

4,150

4,200

3,890

4,070

4,290

4,300

2,150

2,160

2,150

1,750

2,050

2,030

2,020

(Data)

1,880

1,990

2,060

2,140

2,020

2,250

2,290
(Yen)

Averageacquisition cost
per subscriber4

50,10035,90037,40040,20040,50037,20037,500(% per month)

Churn rate5

1.05

1.24

1.16

2.01

1.37

1.02

0.96

(3G postpaid)

0.87

1.07

0.99

1.28

1.06

0.99

0.92

5

1.73

1.81

1.53

1.78

1.71

1.18

1.67

Upgrade rate

Notes:
1. Includes the number of prepaid mobile phones and communication module service subscribers.
2. Calculated by the Company based on Telecommunications Carriers Association statistical data.
3. 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. Average commissions paid to sales agents per new subscription.
New subscriptions include prepaid mobile phones and communication modules.
5. Calculation includes prepaid mobile phones and communication module service subscribers in the number of subscribers,
churn and upgrades respectively.

9

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

Q2

Installed lines6

4,158

4,040

3,908

3,769

3,609

3,457

7

3,769

3,657

3,533

3,389

3,221

3,066

Charged lines(Yen per month)

Average user
payment per
charged line8

4,260

4,260

4,250

4,200

4,210

4,200
(% per month)

Churn rate

9

2.12

1.80

1.96

2.20

2.26

2.02

2.32

Notes:
6. Number of lines for which connection construction for ADSL line at central office of NTT East or NTT West is complete.
7. Number of installed lines excluding customers whose basic monthly charge is free under campaigns or other promotional
initiatives.
8. Rounded to the nearest ¥10.
9. 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

1,669

Q1

Q2

1,668

1,667
(Yen per month)

10

ARPU

6,390

6,280

6,450

6,830

6,610

6,570

Note:
10. Average Revenue Per User: average revenue per line (rounded to the nearest ¥10).

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

Fiscal Year Ended March 31, 2010Yahoo! JAPAN
Total monthly pageviews11
12

Unique browsers

Q1

Q2

Q3

Q4

46,44546,37842,779

229

189

197

Full Year

Q1

Q2

46,882

48,722

49,671

209

224

226

22

22

Yahoo! Auctions
Average number of
total listed items13
20
20
23
23
Notes:
11. Number of accesses to Yahoo! JAPAN Group websites during the last month of each quarter.
12. Number of browsers accessing a Yahoo! JAPAN service during the last month of each quarter.
13. Daily average number of items posted during the last month of each quarter.

10

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the six-month period ended September 30, 2010

(Reference 2: Capital Expenditure and Depreciation)14(a)

Capital Expenditure (acceptance basis)（Millions of yen）

Fiscal Year Ended March 31, 2010
Q1

Q2

Q3

Q4

MobileCommunications

32,40839,14847,921

65,291

184,770

25,98765,387

Broadband
Infrastructure

1,588

1,590

2,095

4,068

9,343

3,319

3,294

Fixed-line
Telecommunications

3,710

3,939

3,436

6,893

17,979

5,112

6,362

Internet Culture

1,085

1,264

1,450

2,327

6,128

1,906

1,908

Others

1,571

915

678

1,528

4,693

1,216

1,559

Consolidated total

40,36446,85855,58280,109222,915

37,54278,513(b)

Full Year

Fiscal Year Ending
March 31, 2011
Q1
Q2

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

37,636

4,373

4,366

4,095

4,188

17,023

4,234

3,968

8,982

8,837

8,669

8,803

35,292

9,104

9,242

Internet Culture

2,366

2,441

2,492

2,563

9,864

2,169

2,307

Others

1,353

1,243

1,401

1,427

5,426

1,445

1,482

Consolidated total

59,80960,26661,31462,553

243,944

53,59054,637

MobileCommunications
Broadband
Infrastructure
Fixed-line
Telecommunications

Full Year

Fiscal Year Ending
March 31, 2011
Q1
Q2

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

11

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

1.

Assets, Liabilities and Equity

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

As of September 30, 2010

ChangeChange (%)

Total assets

4,505,013

4,462,875

42,1380.9％

Total liabilities

3,459,665

3,498,903(39,238)(1.1％)

Total equity

1,045,348

963,971

81,3768.4％(a) Current Assets
Current assets at the end of the interim period totaled ¥1,851,408 million, for a ¥156,967 million (9.3%) increase
from the previous fiscal year-end.

The primary components of the change were as follows:

・ Cash and deposits increased by ¥171,899 million from the previous fiscal year-end.

Fund procurement throughcorporate bonds and long-term borrowings at the Company resulted in an overall increase, while SOFTBANKMOBILE made repayments of the SBM loan1 and payments of lease obligations.
・ Notes and accounts receivable-trade decreased by ¥121,125 million from the previous fiscal year-end, mostly

from SOFTBANK MOBILE’s sales of installment sales receivables.
・ Marketable securities increased by ¥62,273 million from the previous fiscal year-end.

This was mainly fromthe transfer of shares of Yahoo! Inc. that were previously recorded as investment securities under fixed assets tocurrent assets at the end of the interim period. In February 2004, one of the Company’s U.S. subsidiaries
entered into a loan, which involved a portion of proceeds from a forward contract under which its Yahoo! Inc.
shares are expected to be delivered in August 2011. Since the subsidiary intends to deliver such shares inaccordance with the settlement of the forward contract beginning August 2011 or within one year, thecorresponding shares of Yahoo! Inc. were transferred to current assets.
・ Other current assets increased by ¥40,052 million from the previous fiscal year-end.

This was mainly because

derivative assets of ¥32,351 million related to those shares of Yahoo! Inc. included in “other assets” underinvestments and other assets were transferred at the end of the interim period. A derivative contract (“collartransaction”) was concluded with regard to those shares of Yahoo! Inc. to limit the risk from market pricefluctuations of those shares for the period until the transfer, which is expected to occur within one year.
Therefore, the derivative assets were transferred to current assets at the end of the interim period.
Note:
1. The funds procured for the acquisition of Vodafone K.K. were refinanced in November 2006 via a whole businesssecuritization program.

12

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the six-month period ended September 30, 2010(b) Fixed Assets
Fixed assets totaled ¥2,651,361 million at the end of the interim period, for a ¥115,121 million (4.2%) decrease
from the previous fiscal year-end.

The primary components of the change were as follows:・ Investments and other assets decreased by ¥100,884 million from the previous fiscal year-end.

This was mainly

because of a ¥52,267 million decrease in investment securities from the above-mentioned transfer of shares ofYahoo! Inc. to marketable securities under current assets. In addition, derivative assets related to those sharesof Yahoo! Inc. included as “other assets” were transferred to other current assets.
・ Total intangible assets decreased ¥27,170 million from the previous fiscal year-end.

This consisted primarily ofa decrease in goodwill, which occurred when SOFTBANK MOBILE and SOFTBANK TELECOM Corp. wereacquired, of ¥29,751 million resulting from regular amortization.
・ Total property and equipment increased ¥12,932 million from the previous fiscal year-end.

Increases of¥78,667 million mainly as a result of new acquisitions of telecommunications equipment including ¥383 million
reflecting the application of an accounting standard for asset retirement obligations during the interim period
were recorded, along with a decrease of ¥76,330 million related to depreciation of telecommunications
equipment.

The increase reflecting the adjustment for changes of accounting standard for asset retirement

obligations as of April 1, 2010 amounted to ¥10,595 million.

(c) Current Liabilities
Current liabilities at the end of the interim period totaled ¥1,430,042 million, for a ¥51,163 million (3.7%) increase
from the previous fiscal year-end.

The primary components of the change were as follows:・ Accounts payable-other and accrued expenses declined by ¥146,291 million from the previous fiscal year-end.

This was mainly the result of a ¥75,000 million decline from the payment of additional entrustment for debt
assumption, and declines from payments of agency commissions for the previous fiscal year-end shopping
season both at SOFTBANK MOBILE.
・ The current portion of corporate bonds increased by ¥106,369 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, and ¥47,269 million from the Euro-denominated Senior Notes
Due 2013 from the Company’s exercise of a call option, while the Company’s redemptions of unsecured straight
corporate bonds resulted in a decrease of ¥54,400 million. The Euro-denominated Senior Notes Due 2013 havebeen entirely redeemed before maturity as of October 15, 2010.
・ Short-term borrowings increased by ¥64,499 million from the previous fiscal year-end.

This was mainly

because of the transfer to current liabilities of the aforementioned borrowings at one of the Company’s U.S.
subsidiaries as the redemption dates came to be within one year. On the other hand, SOFTBANK MOBILE
repaid borrowings procured via the securitization of installment sales receivables.

13

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the six-month period ended September 30, 2010(d) Long-term Liabilities
Long-term liabilities totaled ¥2,029,622 million at the end of the interim period, for a ¥90,401 million (4.3%)
decrease from the previous fiscal year-end.

The primary components of the change were as follows:・ Long-term borrowings decreased by ¥64,605 million from the previous fiscal year-end.

This was mainly

because of transfers to current liabilities of borrowings at SOFTBANK Holdings Inc. and SOFTBANK MOBILE
that became payable within one year, and SOFTBANK MOBILE’s repayments of the SBM loan.

On the other

hand, there was also an increase in the Company’s long-term borrowings.
・ Lease obligations decreased by ¥46,356 million from the previous fiscal year-end, mostly from a transfer tocurrent liabilities as leases became payable within one year and a decline in the amount of new capital
expenditure via leases.

(e) Equity
Equity totaled ¥1,045,348 million at the end of the interim period, for a ¥81,376 million (8.4%) increase from theprevious fiscal year-end. Retained earnings increased ¥66,589 million, totaling ¥109,661 million at the end of theinterim period.

Minority interests came to ¥528,533 million, an increase of ¥35,570 million.

This was mainly

because of the change in the scope of consolidation for SB Asia Infrastructure Fund L.P., from an affiliate underthe equity method to a consolidated subsidiary, reflecting the adoption of Accounting Standards Codification Topic(ASC) 810, Consolidations formerly SFAS No.167, Amendments to FASB Interpretation No. 46 (R) (SFAS 167)
applied at certain subsidiaries of the Company in the United States of America.

14

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the six-month period ended September 30, 2010

2. Cash Flows
Cash flow activities during the interim period were as follows:
Cash and cash equivalents at the end of the interim period totaled ¥859,518 million, for a ¥171,837 million increase
from the previous fiscal year-end.
(Millions of yen)Six-month Period Ended

Six-month Period Ended

September 30, 2009

September 30, 2010

ChangeCash flows from operating activities

315,341

349,335

33,994

Cash flows from investing activities(138,241)(129,717)

8,524(Reference) Free cash flow

177,099

219,61742,518Cash flows from financing activities(59,096)(45,893)

13,203(a) Cash Flows from Operating Activities:
Net cash provided by operating activities totaled ¥349,335 million (compared with ¥315,341 million provided in
the same period of the previous fiscal year).
Income before income taxes and minority interests totaled ¥246,506 million, while non-cash items of ¥108,228
million in depreciation and amortization and ¥31,301 million in amortization of goodwill were recorded as positive,
and receivables-trade decreased (increase in cash flow) by ¥125,496 million on sales of installment salesreceivables at SOFTBANK MOBILE.
In addition, income taxes paid of ¥132,529 million were recorded for a ¥115,184 million year-on-year increase.
This was mainly because of increased income tax payments for BB Mobile’s income tax under consolidated tax
return and at Yahoo Japan. This amount of income tax payment includes ¥26,450 million additional income taxes
paid by Yahoo Japan on July 1, 2010 relating to the correction and ruling notice it received.

(b) Cash Flows from Investing Activities:
Net cash used in investing activities was ¥129,717 million (compared with ¥138,241 million used in the same
period of the previous fiscal year).
Capital expenditures, mainly at telecommunications-related businesses, resulted in outlays of ¥112,323 million forproperty and equipment and intangibles. Purchases of marketable and investment securities resulted in ¥32,152
million in cash outlays.

As a result, free cash flow (the combined net cash flows from operating activities and investing activities) for theinterim period was a positive ¥219,617 million (compared with a positive ¥177,099 million in the same period of
the previous fiscal year), for a year-on-year increase of ¥42,518 million.

(c) Cash Flows from Financing Activities:
Net cash used in financing activities was ¥45,893 million (compared with ¥59,096 million used in the same periodof the previous fiscal year).
Repayments of long-term borrowings totaled ¥205,088 million, outlays for the repayment of lease obligations came15

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the six-month period ended September 30, 2010

to ¥84,517 million, outlays for the payment relating to the additional entrustment for debt assumption were ¥75,000
million, and ¥54,804 million was used for the redemption of corporate bonds. On the other hand, long-termborrowings raised ¥197,900 million and corporate bond issues generated ¥179,193 million.
(Reference: Major Financing Activities)
The major financing activities in the interim period were as follows:
Item
Bond issuances

Company NameSOFTBANK CORP.

Details
Issue of the 31st Unsecured
Straight Corporate Bond

Issue of the 32nd Unsecured
Straight Corporate Bond

Issue of the 33rd Unsecured
Straight Corporate Bond
(Fukuoka SoftBank HAWKS
Bond)

Bond
redemption

SOFTBANK CORP.

24th Series of Unsecured
Straight Bond
(Fukuoka SoftBank HAWKS
Bond)
22nd Series of Unsecured
Straight Bond
Procurement of funds totaling¥10,000 million accompanying
securitization of mobile phone
installment sales receivables(recorded as borrowings)

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
Issue date: September 17, 2010
Redemption date: September 17, 2013
Procured amount: ¥130,000 million
Interest rate: 1.24%/year
Use: redemption of bonds which will
mature by the end of June 2011
Redemption date: April 26, 2010
Redeemed amount: ¥20,000 million

Redemption date: September 14, 2010
Redeemed amount: ¥34,400 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

Securitization ofreceivables(recordedasborrowings)

SOFTBANK MOBILE Corp.

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

SOFTBANK MOBILE Corp.

Repayment of ¥106,137 million.

SOFTBANK CORP.

Increase of¥198,300 million

Mainly increase of long-term borrowings

SOFTBANK MOBILE Corp.

Decrease of ¥78,985 million

Repayment of funds raised via the wholebusiness securitization financing scheme

Yahoo Japan Corporation

Decrease of ¥10,000 million

SOFTBANK TELECOM Corp. etc.

New capital expenditure via
leasesFunds procured during the six-month period ended
September 30, 2010: ¥11,784 million

SOFTBANK MOBILE Corp.

Repayment of ¥75,000 million

Bonds in scope:
Former Vodafone K.K. corporate bonds
Third Series Unsecured Bond
¥25,000 million(redeemed on August 19, 2010)
Fifth Series Unsecured Bond
¥25,000 million(redeemed on August 25, 2010)
Seventh Series Unsecured Bond ¥25,000 million(redeemed on September 22, 2010)

Capitalexpenditure byfinancial lease
Additional
entrustment for
debt assumption

16

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the six-month period ended September 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 and thetelecommunications 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.

17

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the six-month period ended September 30, 2010

The SOFTBANK GroupAs of September 30, 2010, the Group’s business segments were comprised of the following consolidated subsidiaries
and equity 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. 1)

Internet Culture

1411Internet-based advertising operations, e-commerce site
operations such as Yahoo! Auctions and Yahoo! Shopping
etc.
(Core company: Yahoo Japan Corporation1)

95

67

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

117

79

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.1 )

Note:
1.
Although SOFTBANK BB Corp., SOFTBANK TELECOM Corp. and Yahoo Japan Corporation are included as
consolidated subsidiaries in the Broadband Infrastructure, Fixed-line Telecommunications and Internet Culture segments,
respectively, SOFTBANK BB Corp., SOFTBANK TELECOM Corp. and Yahoo Japan Corporation operate multiple
businesses and therefore their operating results are allocated to multiple business segments.

［Listed Companies］
The Company’s five following subsidiaries were listed on domestic stock exchanges as of September 30, 2010:
Company NameYahoo Japan Corporation(2)SOFTBANK TECHNOLOGY CORP.
Vector Inc.

(3)

Listed ExchangeTokyo Stock Exchange 1st section
JASDAQ Securities ExchangeTokyo Stock Exchange 1st section
Osaka Securities Exchange Hercules

ITmedia Inc.

Tokyo Stock Exchange Mothers

Carview Corporation

Tokyo Stock Exchange Mothers

Notes:
2.
As a result of the integration of the JASDAQ, JASDAQ NEO and Osaka Securities Exchange Hercules markets on
October 12, 2010, Yahoo Japan Corporation is currently listed on Tokyo Stock Exchange 1st section and Osaka Securities
Exchange JASDAQ (Standard).
3.
As a result of the integration of the JASDAQ, JASDAQ NEO and Osaka Securities Exchange Hercules markets on
October 12, 2010, Vector Inc. is currently listed on Osaka Securities Exchange JASDAQ (Standard).

18

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the six-month period ended September 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 September 30, 2010.
The effect of this change is not material for the period ended September 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 ¥7,780 million for the period ended September 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 September 30, 2010.

19

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the six-month period ended September 30, 2010

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

As ofMarch 31, 2010

AmountAmountASSETS
Current assets:
Cash and deposits
Notes and accounts receivable - tradeMarketable securities¥861,953¥690,053

695,424

816,550

66,615

4,342

Merchandise and finished products

48,98137,030

Deferred tax assets

66,86974,290

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

146,785

106,733(35,221)(34,559)

1,851,408

1,694,440

Buildings and structures

74,486

68,182

Telecommunications equipment

712,843

706,283

Telecommunications service lines

71,22572,983

Land

22,416

22,401

Construction in progress

33,58534,634

Other property and equipment

49,077

46,218

Total property and equipment

963,635

950,703

Goodwill

871,017

900,768

Software226,412208,915

Other intangibles

27,78542,702

1,125,215

1,152,386

317,760

370,027

132,111

152,654

133,797

164,950(21,160)
562,5092,651,361(24,238)
663,394
2,766,483

2,243

1,951

¥4,505,013¥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

20

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the six-month period ended September 30, 2010

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

As ofMarch 31, 2010

AmountAmountLIABILITIES AND EQUITYCurrent liabilities:
Accounts payable - trade
Short-term borrowings¥174,789¥158,942

502,459

437,960

Current portion of corporate bonds
Accounts payable - otherand accrued expenses

160,769

54,400305,117451,408

Income taxes payable

89,950100,483

Deferred tax liabilities

13,193-Current portion of lease obligations

112,078

109,768

Other current liabilities

71,68365,914

Total current liabilities

1,430,042

1,378,878

Corporate bonds

467,398

448,523

Long-term debt

Long-term liabilities:
1,216,980

1,281,586

Deferred tax liabilities

5,069

30,482

Liability for retirement benefits

15,274

15,557

Allowance for point mileage

41,68347,215

Lease obligations

178,127

224,484

Other liabilities

105,089

72,175

Total long-term liabilities

2,029,622

2,120,024

Total liabilities

3,459,665

3,498,903

Common stock

188,771

188,750

Additional paid-in capital

212,609

213,068

Retained earnings

109,661

43,071

Less: Treasury stock

(231)

(225)

Total shareholders’ equity

510,810444,665

Unrealized gain on available-for-sale securities

33,214

43,864

Deferred gain on derivatives under hedge accounting

17,327

14,528Foreign currency translation adjustments(45,219)(32,525)

Total valuation and translation adjustments

5,322

25,866

Stock acquisition rights

682

476

Minority interests

528,533

492,963

Total equity

1,045,348

963,971

Total liabilities and equity¥4,505,013¥4,462,875

Equity:21

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the six-month period ended September 30, 2010

(2) Consolidated Statements of Income
For the six-month period ended September 30, 2009 and 2010

(Millions of yen)Six-month period ended
September 30, 2009
April 1, 2009 to
September 30, 2009
AmountNet sales
Cost of sales
Gross Profit
Selling, general and administrative expenses
Operating income
Interest income
Foreign exchange gain, net
Equity in earnings of affiliated companies
Other non-operating income
Non-operating income
Interest expense
Equity in losses of affiliated companies
Other non-operating expenses
Non-operating expenses

Six-month period ended
September 30, 2010
April 1, 2010 to
September 30, 2010
Amount¥1,349,275¥1,465,021

649,351

665,496

699,923

799,525

469,302484,003

230,621315,521

306

1,133

766

258

2,283

-

3,011

4,942

6,367

6,334

55,34554,783

-

1,084

8,106

12,14563,45168,012

173,538

253,843

Gain on sale of investment securities

4,027

4,915

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

1,160

1,436

345

-

448

551

Special income
Unrealized appreciation on valuation of investments andloss on sale of investments at subsidiaries in the U.S.,
net
Impairment loss
Loss on adjustment for changes of accounting standard
for asset retirement obligations
Other special losses
Special loss

5,981

6,903

-

745

797

-

-

7,099

1,906

6,395

2,704

14,240176,815

246,506

Ordinary income

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

22

48,823

95,701-

26,45034,73518,50383,558140,654-

105,851

22,50629,012¥70,750¥76,839SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the six-month period ended September 30, 2010

For the three-month period ended September 30, 2009 and 2010

(Millions of yen)Three-month period ended
September 30, 2009
July 1, 2009 to
September 30, 2009
AmountThree-month period ended
September 30, 2010
July 1, 2010 to
September 30, 2010
AmountNet sales
Cost of sales
Gross Profit¥682,941¥764,181

331,745

358,315

351,196405,866

Selling, general and administrative expenses

228,864

246,948

122,331

158,917

188

604

382

411

-

1,199

Operating income
Interest income
Foreign exchange gain, net
Gain on investments in partnership
Equity in earnings of affiliated companies

2,915

-

Other non-operating income
Non-operating income

1,292

1,332

4,779

3,547

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

27,85526,993

-

1,301

4,515

7,171

32,37035,466

Ordinary income

94,740126,998

Gain on sale of investment securities

3,495

4,797

Other special income

599

1,232

Special income

4,094

6,029

Valuation loss on investment securities
Unrealized appreciation (loss) on valuation of
investments and loss on sale of investments at
subsidiaries in the U.S., net
Settlement of contract amendment
Other special losses
Special loss

364

1,253

521

797

-

1,817

328

817

1,213

4,685

97,621

128,342

28,966

61,59913,546(6,870)42,51254,729-73,613

11,742

16,212¥43,366¥57,400

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

23

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the six-month period ended September 30, 2010

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

Six-month period ended
September 30, 2010

April 1, 2009 to
September 30, 2009

April 1, 2010 to
September 30, 2010

Cash flows from operating activities:
Income before income taxes and minority interests¥176,815¥246,506

Depreciation and amortization

120,075

108,228

Amortization of goodwill

30,55731,301797-

Equity in (earnings) losses of affiliated companies(2,283)

1,084

Dilution gain from changes in equity interest, net(1,080)(1,323)

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

1,288

2,685

(345)

745

Gain on sale of marketable and investment securities, net(3,969)(4,882)Foreign exchange gain, net

(835)

(59)

Interest and dividend income(520)(1,516)

Interest expense

55,34554,783

Decrease in receivables - trade

63,499125,496(Decrease) increase in payables - trade(2,096)

14,351(57,319)(49,296)379,927

528,105

560

1,530

Interest paid

(47,800)(47,770)

Income taxes paid

(17,345)(132,529)

315,341

349,335

Adjustments for:

Impairment loss

Changes in operating assets, and liabilities

Other, net
Sub-totalInterest and dividends received

Net cash provided by operating activities- Continued -24

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the six-month period ended September 30, 2010

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

Six-month period ended
September 30, 2010

April 1, 2009 to
September 30, 2009

April 1, 2010 to
September 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¥ (144,149)¥ (112,323)(12,114)(32,152)

15,561

12,480Acquisition of interests in subsidiaries newly consolidated,
net of cash acquired

(40)

(701)

Other, net

2,501

2,980

(138,241)(129,717)(148,581)

15,246

Increase in commercial paper, net

3,000

-

Proceeds from long-term debt

201,727

197,900

Repayment of long-term debt

(250,138)(205,088)

Proceeds from issuance of bonds

153,627

179,193

Redemption of bonds(6,673)(54,804)

Exercise of warrants

2,105

41

Proceeds from issuance of shares to minority shareholders

687

267

Cash dividends paid

(2,667)(5,360)Cash dividends paid to minority shareholders
Proceeds from sale and lease back of equipment newly acquired(4,492)(14,994)

38,977

11,784

Repayment of lease obligations(44,562)(84,517)-(75,000)

Other, net(2,106)(10,560)

Net cash used in financing activities(59,096)(45,893)(1,541)(1,903)

116,461

171,820

126

1,919

(807)

(64)

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

Payments for additional entrustment for debt assumption

Effect of exchange rate changes
on cash and cash equivalents
Net increase in cash and cash equivalents
Increase in cash and cash equivalents due to newly consolidated
subsidiaries
Decrease in cash and cash equivalents due to exclusion ofpreviously consolidated subsidiaries
Decrease in cash and cash equivalents resulting from corporate
separation
Cash and cash equivalents, beginning of the period-(1,837)457,644687,681

Cash and cash equivalents, end of the period¥573,424¥859,518

25

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

(5) Significant Changes in Shareholder’s Equity
There are no applicable items for the six-month period ended September 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 19 are excluded.)
1. Changes in scope of consolidation(1) Changes in scope of consolidation for the six-month period ended September 30, 2010 are as follows:<Increase>
11 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:
117 companies
2. Changes in scope of equity method(1) Changes in scope of equity method are as follows:<Increase>
20 companies
Significant changes:
SB Asia Infrastructure Fund L.P.’s 12 affiliates under equity method
USTREAM, Inc.
<Decrease>
5 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: 5 companies
Affiliated companies under the equity method: 74 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 September 30, 2010.

26

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

As of September 30, 2010

1,048,584

million yen

1,103,566

million yen

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

Issue date

Maturity date

Third Series Unsecured Bond

August 19, 1998

August 19, 2010

25,000Fifth Series Unsecured Bond

August 25, 2000

August 25, 2010

25,000Seventh Series Unsecured Bond

September 22, 2000

September 22, 2010

25,000

Total

Amount of transferred bond

75,000 million yen

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 September 30, 2010

As of March 31, 2010

Assets pledged as collateral:
Cash and deposits

230,788

213,098

Notes and accounts receivable - trade290,698

273,231

Marketable securities1

63,022-

Buildings and structures

11,886

12,133

Telecommunications equipment

213,732

182,945

Telecommunications service lines

80

86

10,666

10,633-81,701

13,546

17,225Land
Investment securities and investments in unconsolidated
subsidiaries and affiliated companies
Investments and other assets - other assets
Total

834,421

27

million yen

791,054

million yen

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the six-month period ended September 30, 2010

As of September 30, 2010

As of March 31, 2010

Secured liabilities:
Accounts payable - trade

1,118

1,674

Short-term borrowings

92,5491,928

2Long - term debt

1,086,707

907,716

Total

1,001,384

million yen

1,090,310

million yen

Notes:
1. Shares of Yahoo! Inc. placed as collateral for a loan procured by a subsidiary of the Company in the United States ofAmerica were transferred to “Marketable securities” since the maturity for the loan was within one year. Theseshares were recorded as “Investment securities and investments in unconsolidated subsidiaries and affiliatedcompanies” as of March 30, 2010.
2. Consolidated subsidiaries shares owned by SOFTBANK MOBILE, SOFTBANK MOBILE shares owned by BB
Mobile Corp. and BB Mobile Corp. shares owned by Mobiletech Corporation are pledged as collateral for long-term
debt (totaled to ¥986,702 million and ¥907,716 million, as of March 31, 2010 and September 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 September 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¥112,491 million, as of March 31, 2010 and September 30, 2010, respectively) and “Long-term debt” (¥44,454 millionand ¥11,184 million, as of March 31, 2010 and September 30, 2010, respectively). The amounts of the senior portionof the securitized installment sales receivables (¥219,813 million and ¥123,675 million, as of March 31, 2010 and
September 30, 2010, respectively) were included in “Notes and account receivable-trade”, along with the subordinatedportion held by the SOFTBANK MOBILE. The trustee raised the funds through asset backed loans based on thereceivables.
[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 ¥6,367 million, as of March 31, 2010 and September 30, 2010, respectively) from a financial
institution. Cash proceeds through the asset backed loans are included in the “Short-term borrowings” (¥6,660 millionand ¥6,367 million, as of March 31, 2010 and September 30, 2010, respectively) and “Long-term debt” (¥3,844 million,
as of March 31, 2010).
Note:* A certain portion of present and future (through March 2012) receivables realized through the ADSL services
provided by SOFTBANK BB.

28

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the six-month period ended September 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 September 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 September 30, 2010

As of March 31, 2010

Assets of which ownership is not transferred:61

35

28,32916,710Construction in progress

2,966

1,538

Software

10,469

4,755

660

12

Buildings and structures
Telecommunications equipment

Other intangibles

240

349

Investments and other assets - other assets
Total

42,837

million yen

As of September 30, 2010

23,292

million yen

As of March 31, 2010

Installment payables:
Accounts payable - other and accrued expenses

5,891

4,148

Long term liability - other liabilities
Total

38,246

20,741

44,13829

million yen

24,889million yen

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the six-month period ended September 30, 2010

(Consolidated Statements of Income)For the six-month period ended September 30, 2009 and 2010

1.

(From April 1 to September 30, 2009 and 2010)

Selling, general and administrative expenses
Six-month period ended
September 30, 2009
223,907 million yen

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

8,866

Six-month period ended
September 30, 2010
241,746 million yen
7,446

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:
Six-month period ended
September 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

Six-month period ended
September 30, 2010

1,338

338

(993)

(1,083)345 million yen(745)

million yen

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

4. Income taxes – corrections (For the six-month period ended September 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 and paid for the period ended September 30, 2010.
Yahoo Japan submitted a request for reconsideration to the national tax tribunal, will separately bring legal suit depending on
the situation, and thoroughly argue its position on this matter.

30

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the six-month period ended September 30, 2010

For the three-month period ended September 30, 2009 and 2010

1.

(From July 1 to September 30, 2009 and 2010)

Selling, general and administrative expenses
Three-month period ended
September 30, 2009
104,542 million yen

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

5,258

Three-month period ended
September 30, 2010
127,611 million yen
3,691

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

31

Three-month period ended
September 30, 2010

(1)

158

(519)

(955)

(521) million yen(797)

million yen

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

As of September 30, 2010

Cash and deposits

575,835

Marketable securities

3,942

66,615Time deposits with original maturity over three months(2,741)(2,764)

Stocks and bonds with original maturity over three months(3,612)(66,285)

Cash and cash equivalents

573,424

million yen

861,953 million yen

859,518 million yen

2. Income taxes paid
Payment for income taxes-corrections of ¥26,450 million based on the receipt of the correction notice described in “(7) Notes(Consolidated Statements of Income) 4. Income taxes-corrections” are included in “Income taxes paid” in the consolidated
statements of cash flows for the period ended September 30, 2010.

3. 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 andequipment, and intangible assets (excluding goodwill) and long-term prepaid expenses.

4. 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.”

5. Payments for additional entrustment for debt assumption
Additional entrustment of ¥75,000 million recorded as special loss in the consolidated statements of income for the year ended
March 31, 2009 reached its maturity date for the period ended September 30, 2010. The amount of payment was recorded as“Payments for additional entrustment for debt assumption” in the consolidated statements of cash flows.

32

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the six-month period ended September 30, 2010

(Segment Information)
1. Business segment information
For the six-month period ended September 30, 2009 (From April 1, 2009 to September 30, 2009)(Millions of yen)
MobileBroadband

Fixed-line

InternetCommunications

Infrastructure

Telecommunications

Culture(1) Customers¥827,413¥103,345¥151,567¥128,952¥104,501(2) Inter-segment

4,779

2,191

21,042

2,177

5,664

9,137

Total

832,193

105,537

172,609131,129

110,166

Operating income (loss)¥131,776¥27,230¥7,830¥64,154¥2,161e-Commerce

OthersTotal

Elimination

Consolidated

or Corporate

Net sales¥33,495 ¥1,349,275¥-¥1,349,275

44,993(44,993)-

42,632

1,394,268(44,993)

1,349,275¥(160)¥232,991¥(2,369)¥230,621

For the three-month period ended September 30, 2009 (From July 1, 2009 to September 30, 2009)(Millions of yen)
MobileBroadband

Fixed-line

InternetCommunications

Infrastructure

Telecommunications

Culture(1) Customers¥422,317¥50,670¥75,100¥64,820(2) Inter-segment

2,570

1,060

10,751

Total

424,888

51,731

Operating income¥71,515¥13,326

e-Commerce

Elimination

OthersTotal¥52,712¥17,319¥682,941¥-¥682,941

1,153

3,239

4,646

23,421(23,421)-85,851

65,973

55,952

21,965706,362(23,421)682,941¥4,336¥32,436¥1,221¥719¥123,556¥(1,224)¥122,331

or Corporate

Consolidated

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

33

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the six-month period ended September 30, 2010

2. Geographic segment information
For the six-month period ended September 30, 2009 (From April 1, 2009 to September 30, 2009)(Millions of yen)North
AmericaJapan

OthersElimination
or Corporate

Total

Consolidated

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

226

-

-

226

(226)

-

Total

1,345,128

525

3,847

1,349,501(226)

1,349,275

Operating income (loss)¥234,211¥(471)¥(271)¥233,468¥(2,846)¥230,621(2) Inter-segment

For the three-month period ended September 30, 2009 (From July 1, 2009 to September 30, 2009)(Millions of yen)North
AmericaJapan

OthersElimination
or Corporate

Total

Consolidated

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

130

-

-

130

(130)

-

Total

680,758

266

2,048

683,072(130)

682,941

Operating income (loss)¥123,988¥(156)¥(93)¥123,738¥(1,407)¥122,331(2) Inter-segment

Notes:
1. Net sales by geographic region are recognized based on geographic location of the operation.
2. Significant countries in each region are as follows:
North America: United States of America and Canada
Others: Europe, Korea, China, Singapore, and others

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

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 September 30, 2010.

34

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the six-month period ended September 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 six-month period ended September 30, 2010 (From April 1, 2010 to September 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¥935,045¥94,832¥146,838¥135,256¥1,311,973¥153,048¥1,465,021¥-¥1,465,021

4,999

2,537

26,0482,208

35,793

17,053

52,847(52,847)-

Total

940,044

97,370172,887

137,465

1,347,766

170,102

1,517,869(52,847)

1,465,021

Segment income¥207,203¥22,700¥13,603¥71,640¥315,148¥5,913¥321,061¥(5,540)¥315,521

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 ¥(5,540) million represents elimination of intersegment
transactions and expenses of the corporate division of the Company, which totaled ¥639 million and ¥(6,179) million, respectively.
3. Segment income is adjusted with operating income in the consolidated statements of income.

For the three-month period ended September 30, 2010 (From July 1, 2010 to September 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¥496,524¥46,280¥73,639¥68,114¥684,558¥79,623¥764,181¥-¥764,181

2,441

1,766

13,371

945

18,5258,596

27,121(27,121)-

Total

498,966

48,04687,01069,060703,083

88,219791,303(27,121)764,181

Segment income¥104,546¥11,004¥6,942¥36,067¥158,560¥3,351¥161,911¥(2,993)¥158,917

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 ¥(2,993) million represents elimination of intersegment
transactions and expenses of the corporate division of the Company, which totaled ¥101 million and ¥(3,094) million, respectively.
3. Segment income is adjusted with operating income in the consolidated statements of income.

35

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the six-month period ended September 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:As of September 30, 2010

Telecommunications equipment andtelecommunications service lines
Acquisition cost
Accumulated depreciation
Accumulated impairment loss
Net leased property
Buildings and structures
Acquisition cost
Accumulated depreciation
Accumulated impairment loss

As of March 31, 2010

140,330(74,830)

141,093(67,776)(33,109)
32,390(33,232)
40,084

million yen

46,730(11,909)-46,729(13,077)-

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

14,869(10,448)(1,077)Net leased property

3,342

Intangible assets
Acquisition cost
Accumulated depreciation
Accumulated impairment loss

8,635
(7,194)(171)

Net leased property

1,270

Acquisition cost
Accumulated depreciation
Accumulated impairment loss
Net leased property

210,564(105,550)(34,358)
70,65533,651

million yen

million yen

34,820

million yen

16,113(10,223)(1,242)
million yen

4,647

million yen

9,070(6,669)(290)
million yen

2,110

million yen

million yen

213,007(96,579)(34,765)
81,662

million yen

Total

36

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the six-month period ended September 30, 2010

Current portion of long-term prepaid expenses related to a lease contract, in which the contract term and payment term are
different, in the amount of ¥670 million and ¥628 million as of March 31, 2010 and September 30, 2010 are included in“Other current assets” in the consolidated balance sheets. Long-term prepaid expenses relating to the lease contract as ofMarch 31, 2010 and September 30, 2010 were ¥25,157 million and ¥26,304 million, respectively and are included in“Other assets” of investments and other assets in the consolidated balance sheets.
(2) Obligations under finance lease at the end of each period:
As of September 30, 2010

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

22,754
68,27791,031
6,978

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:
From April 1 to September 30, 2009 and 2010
Six-month period ended

Six-month period ended

September 30, 2009

September 30, 2010

19,046

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

million yen

15,291 million yen

4,399

3,797

12,257
4,552

10,0883,624

Three-month period ended

Three-month period ended

From July 1 to September 30, 2009 and 2010
September 30, 2009

9,462

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

million yen

September 30, 2010

7,488 million yen

2,228

2,008

6,119
2,204

5,055
1,644

(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.

37

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the six-month period ended September 30, 2010

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

As of March 31, 2010
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)Classification

As of March 31, 2010
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
Companies of the FASB Accounting Standards Codification
Certain subsidiaries of the Company in the United States of America qualify as investment companies under the provisions set
forth in Financial Services – Investment Companies of the FASB Accounting Standards Codification Topic 946(ASC 946)
and account for investment securities in accordance with ASC 946.
The carrying amounts of the investment securities at fair value recorded in the consolidated balance sheets as of March 31,
2010 were as follows:
As of March 31, 2010
15,316 million yen

Carrying amounts of investment securities at fair value:38

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the six-month period ended September 30, 2010

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

As of September 30, 2010
Carrying Amount

Fair Value

Differences

Corporate bonds¥1,498¥1,334¥(164)

Total¥1,498¥1,334¥(164)

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

As of September 30, 2010
Carrying Amount

Investment Cost

(1)Equity securities¥84,882¥27,383¥57,499(2)Debt securities

31,272

27,0654,206(3)Others

2,591

2,564

27

¥118,747¥57,013¥61,733

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
Companies of the FASB Accounting Standards Codification
Certain subsidiaries of the Company in the United States of America qualify as investment companies under the provisions set
forth in Financial Services – Investment Companies of the FASB Accounting Standards Codification Topic 946(ASC 946)
and account for investment securities in accordance with ASC 946.
The carrying amounts of the investment securities at fair value recorded in the consolidated balance sheets as of September 30,
2010 were as follows:
As of September 30, 2010
12,832 million yen

Carrying amounts of investment securities at fair value:

39

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the six-month period ended September 30, 2010

(Per Share Data)
1.

Shareholders’ equity per share
As of

As of

September 30, 2010

March 31, 2010

Shareholders’ equity per share (yen)2.

¥434.74¥476.86

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

For the six-month period ended September 30, 2009 and 2010
April 1, 2009 to

April 1, 2010 to

September 30, 2009

September 30, 2010

Net income per share – primary (yen)

65.41

70.99

Net income per share – diluted (yen)

63.02

68.32

Basic data for computation of the per share data

April 1, 2009 to

April 1, 2010 to

September 30, 2009

September 30, 2010

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 share

40-

70,75076,839--70,75076,8391,081,663

1,082,342

481

481

(14)

(71)

467

410

48,43948,298-

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the six-month period ended September 30, 2010

For the three-month period ended September 30, 2009 and 2010
July 1, 2009 to

July 1, 2010 to

September 30, 2009

September 30, 2010

Net income per share – primary (yen)

40.07

53.03

Net income per share – diluted (yen)

38.56

50.91

Basic data for computation of the per share data

July 1, 2009 to

July 1, 2010 to

September 30, 2009

September 30, 2010

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 share41-

43,366

57,400--43,366

57,4001,082,314

1,082,349

240

240

(7)

(77)

233

163

48,30048,296-