SOFTBANK CORP.
CONSOLIDATED FINANCIAL REPORTFor the nine-month period ended December 31, 2008
Tokyo, February 5, 2009

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

Net sales

Operating income

Ordinary income

Net income

Amount%Amount%Amount%Amount%Nine-month period ended
December 31, 2008

¥1,982,262-¥274,690-¥174,494-¥58,182-

Nine-month period ended
December 31, 2007

¥2,058,765

13.0¥260,188

31.9¥231,998

107.9¥93,196324.9

Net income
per share－basic(yen)

Net income
per share－diluted(yen)

Nine-month period ended
December 31, 2008

¥53.84¥51.29Nine-month period ended
December 31, 2007¥87.57¥82.34(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 December 31, 2008

¥4,302,673¥843,697

9.0¥359.16

As of March 31, 2008

¥4,558,901¥848,725

8.4¥355.15

Note: Shareholders’equity (consolidated)
As of December 31, 2008:
As of March 31, 2008:¥388,193million¥383,742 million

2. Dividends(Record date)

First quarter

FY 2008
FY2009FY 2009(Forecasted)

Dividends per share
Third quarter

Second quarter

Fourth quarter

Total

(yen)

(yen)

(yen)

(yen)

(yen)

-

0.00
0.00

-

2.50

2.50

2.50

2.50

-

Revision of forecasts on the dividends: No1

3.

Forecasts on the consolidated operation results for the fiscal year ending in March 2009 (April 1, 2008 – March 31, 2009)(Percentages are shown as year-on-year changes)(Millions of yen)

Operating income
Full financial year

¥ 340,000

4.8 (%)

Revision of forecasts on the consolidated operation results: No

4. Others(1) Significant Changes in Scope of Consolidation (Changes in Scope of Consolidation of Specified Subsidiaries):None(2) Application of simple accounting methods or special accounting methods for preparation for the consolidated financial
statements:
None(3) Changes in accounting principles, procedures, disclosure methods, etc., used in the presentation of the consolidated financial
statements (Changes described in “(5) Basis of Presentation of Quarterly Consolidated Financial Statements”)[1] Changes due to revisions in accounting standards: Yes[2] Changes other than those in [1]: Yes
Note: Please see “Qualitative Information / Financial Statements 5. Others” in details on page 21.
(4) Number of shares issued (Common stock)[1] Number of shares issued (including treasury stock):
As of December 31, 2008:
As of March 31, 2008:

1,081,008,978 shares
1,080,664,578 shares[2] Number of treasury stock:
As of December 31, 2008:
As of March 31, 2008:

167,932 shares
163,811 shares[3] Weighted average number of common stock :As of December 31, 2008:
As of December 31, 2007:

1,080,653,361 shares
1,064,263,539 shares* Notes to forecasts on the consolidated operating results and another item
1. The forecast figures are estimated based on the information which the company is able to obtain at present point and the assumption which isdeemed to be reasonable. However, actual results may be different due to various factors.
2. The forecasts of the consolidated cash flows from operating activities, the consolidated cash flows from investing activities and theconsolidated free cash flow for the fiscal year ending March 31, 2009 were upwardly revised on February 5, 2009. No changes have been
made in the forecast of consolidated operating income. For more details, please refer to “3. Qualitative Information on Consolidated Earnings
Forecasts” on page 19 and the related press release “Announcement Regarding Revision of Earnings Forecasts” issued on February 5, 2009.
3. “Accounting Standard for Quarterly Financial Reporting and its Implementation Guidance ” (ASBJ Statement No.12 issued on March 14,2007) and “Guidance on Accounting Standard for Quarterly Financial Reporting ” (ASBJ Guidance No.14 issued on March14, 2007) wereapplied for the period ended December 31, 2008. The consolidated financial statements for the period ended December 31, 2008 wereprepared by following “Regulations for Quarterly Consolidated Financial Statements”.

2

SOFTBANK CORP. CONSOLIDATED FINANCIAL REPORTFor the nine-month period ended December 31, 2008

Qualitative Information / Financial Statements
1. Qualitative Information on Consolidated Results of Operations<<Summary of Results of Operations>>
Net sales¥ 1,982,262 million (3.7% decrease year-on-year)

Operating income¥274,690 million (5.6% increase year-on-year)

Ordinary income¥174,494 million (24.8% decrease year-on-year)

Net income¥58,182 million (37.6% decrease year-on-year)<Overview of results for the period ended December 31, 2008 (nine-month period from April 1, 2008 to
December 31, 2008)>
Net sales for the first three quarters of the fiscal year ending March 2009 (nine-month period from April 1, 2008 to
December 31, 2008; hereinafter ‘the period’) totaled ¥1,982,262 million, and operating income came to ¥274,690 million,
the highest level of operating income since the SOFTBANK Group (hereinafter ‘the Group’) was established.

Net sales

declined in comparison to the same period in the previous fiscal year (nine-month period ended December 31, 2007;
hereinafter ‘year-on-year’), primarily because of a decline in handset sales in the Mobile Communications segment.
Even though operating income in the Mobile Communications segment declined, all other businesses recorded higher
operating income, and consolidated operating income increased year-on-year as a result.
<Quarterly Results>(Millions of yen)
Fiscal year ended March 31, 2008

Net sales
OperatingincomeOrdinary
incomeNet income

Fiscal year ending March 31, 2009

Q1

Q2

Q3

Q4

Q1

Q2

Q3

663,084

701,660

694,020

717,402647,255

681,742653,264—

78,74689,00092,44164,09885,086

94,913

94,690—51,15460,010120,833

26,61554,272

63,04357,178—25,13021,331

46,734

15,427

19,36821,747

17,066—

3

Q4

SOFTBANK CORP. CONSOLIDATED FINANCIAL REPORTFor the nine-month period ended December 31, 2008

(1) Net Sales
Net sales declined ¥76,502 million to ¥1,982,262 million, or 3.7% year-on-year.

This decrease was primarily the resultof a ¥69,769 million decline in net sales in the Mobile Communications segment on lower handset sales.
(2) Operating Income
Operating income totaled ¥274,690 million, an increase of ¥14,501 million, or 5.6%, year-on-year.

The maincontributions to this growth came from continued cost reductions at SOFTBANK TELECOM Corp. (hereinafter‘SOFTBANK TELECOM’) and SOFTBANK BB Corp. (hereinafter ‘SOFTBANK BB’), combined with steady income
growth at Yahoo Japan Corporation.

The Fixed-line Telecommunications segment recorded an increase of 6.6-times to¥9,611 million, the Internet Culture segment recorded an increase of 9.9% to ¥8,280 million, and the Broadband
Infrastructure segment recorded an increase of 20.8% year-on-year, to ¥6,310 million.
The cost of sales for the period was ¥1,019,719 million, down ¥66,388 million, or 6.1%, year-on-year. This decline
was due primarily to a lower cost of goods sold for handsets at the Mobile Communications segment and lower
telecommunications equipment usage fees at the three telecommunications companies: SOFTBANK TELECOM,SOFTBANK BB and SOFTBANK MOBILE Corp. (hereinafter ‘SOFTBANK MOBILE’).

Selling, general andadministrative expenses came to ¥687,852 million, a decrease of ¥24,615 million, or 3.5%, year-on-year. This decline
was primarily attributable to lower sales commissions and sales promotion expenses in the Mobile Communications andBroadband Infrastructure segments.
(3) Non-operating Income
Non-operating income came to ¥7,727 million, a decrease of ¥63,690 million, or 89.2%, year-on-year.

While recordinga ¥61,570 million gain from equity in earnings of affiliated companies in the same period of the previous fiscal year, inthe period, a ¥8,471 million equity in loss of affiliated companies was recorded as a non-operating expense.

The

primary component of the year-earlier gain was ¥57,223 million from the new listing of Alibaba.com Limited, asubsidiary of the Group’s equity-method affiliate, Alibaba Group Holding Limited, on the Hong Kong Stock Exchange on
November 6, 2007.

(4) Non-operating Expenses
Non-operating expenses were ¥107,923 million, an increase of ¥8,315 million, or 8.3% year-on-year. This rise wasprincipally due to interest expense of ¥85,220 million, which grew ¥1,647 million year-on-year.

In addition, thedeterioration in equity prices during the period led to a downturn in the performance of equity-method applied investment
funds, resulting in an equity-method investment loss of ¥8,471 million.

(5) Special Income
Special income totaled ¥9,740 million.

This came primarily from the recognition of a ¥2,980 million gain from the saleof investment securities and a ¥2,972 million gain on the liquidation of a subsidiary.

4SOFTBANK CORP. CONSOLIDATED FINANCIAL REPORTFor the nine-month period ended December 31, 2008(6) Special Loss
The special loss came to ¥10,137 million.

This was mainly from the recognition of a ¥3,907 million valuation loss on

investment securities and a ¥3,673 million unrealized loss on valuation of investments and gain on sale of investments at
subsidiaries in the U.S., net.
(7) Income Taxes and Others
Current income taxes totaled ¥53,247 million, deferred income taxes came to ¥29,361 million, and ¥33,306 million wasrecorded as minority interests in net income.

The consolidated financial statements for the period ended December 31, 2008 were prepared following the Regulations for
Quarterly Consolidated Financial Statements.

Therefore, the financial results of the same period of the previous fiscal

year and year-on-year comparisons have been included for reference purposes.

5SOFTBANK CORP. CONSOLIDATED FINANCIAL REPORTFor the nine-month period ended December 31, 2008

Results by business segment are as follows:[Mobile Communications]<<Summary of Segment Results>>
Net sales
Operating income¥1,150,822 million(5.7% decrease year-on-year)¥134,911 million(8.8% decrease year-on-year)

Net subscriber additions totaled 1,413,600 for the nine-month period of the fiscal year.
No. 1 in monthly net additions for 20 consecutive months through December 2008.
Total number of subscribers reached 19.99 million, of which 17.25 million were 3G subscribers.

<Analysis of Results>
Net sales were ¥1,150,822 million, down ¥69,769 million, or 5.7%, lower year-on-year.
¥13,068 million, or 8.8% year-on-year, to ¥134,911 million.

Operating income decreased by

The decrease in net sales was primarily a reflection of adecline in handset sales at SOFTBANK MOBILE, the segment’s core company.

The decline in operating income

reflected the increase of fixed assets depreciation and amortization of software.
<Quarterly Results>(Millions of yen)
Fiscal year ended March 31, 2008

Fiscal year ending March 31, 2009

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Sales

391,668

422,841

406,081410,260

372,585

401,375

376,861—

Operatingincome43,52850,69153,76026,58944,27343,89046,747—<Number of Mobile Phone Subscribers>
Net subscriber additions (new subscribers minus cancellations) at SOFTBANK MOBILE for January – December 2008
totaled 2,386,300, a record number, including the period SOFTBANK MOBILE operated as J-PHONE and Vodafone.
The number of SOFTBANK MOBILE subscribers totaled 19,999,800*1 as of the end of the period, for an increase of
1,413,600 subscribers from the end of the previous fiscal year, while market share rose 1.4 percentage points, to 18.9%.
In addition, the number of applications for White Plan, which has a basic monthly charge of ¥980 (including tax),
exceeded 15 million as of November 2008.

The number of 3G subscribers totaled 17.25 million, representing more than

80% of total subscribers. SOFTBANK MOBILE continues its efforts to promote the migration to 3G in advance of thescheduled termination of its 2G service on March 31, 2010.
The total number of subscribers surpassed 20 million on January 1, 2009.

*1. The total number of subscribers for SOFTBANK MOBILE includes communication module service subscribers.
communication module service subscribers at the end of the period was 32,100.

6

The number ofSOFTBANK CORP. CONSOLIDATED FINANCIAL REPORTFor the nine-month period ended December 31, 2008

(Thousands of lines)
Fiscal year ended March 31, 2008

Fiscal year ending March 31, 2009

Q1

Q2

Q3

Q4

Q1

Q2

Q4

Net additions

530.8

612.0

561.0

972.7

525.5

521.4

366.6

—

Total

16,440.5

17,052.5

17,613.5

18,586.2

19,111.7

19,633.2

19,999.8—

Q3.
<Churn Rate and Upgrade Rate>
The churn rate for the third quarter was 0.91%, a 0.28 percentage point improvement from the previous fiscal year, and a
0.07 percentage point improvement from the second quarter.

The upgrade rate for the third quarter was 1.67%, a 0.26

percentage point improvement from the previous fiscal year, and a 0.24 percentage point improvement from the second
quarter.
(% per month)Fiscal year ended March 31, 2008
Q1

Q2

Q3

Fiscal year ending March 31, 2009
Q4

Q1

Q2

Q4

Q3

Churn rate

1.46

1.42

1.21

1.19

0.98

0.98

0.91

—

(3G only)*2

1.07

1.05

0.88

0.85

0.72

0.76

0.69

—

Upgrade rate

2.25

2.67

2.00

1.93

1.27

1.91

1.67

—

*2. Excludes 3G Prepaid Service.

<ARPU and Average Acquisition Commission per User>
Total ARPU*3 in the period was ¥4,090, a decline of ¥220 from the end of the previous fiscal year and a ¥80 decline fromthe second quarter. This decline in total ARPU was a reflection of the special discount for subscribers to Monthly
Discounts*4 and the growth in the number of subscribers to White Plan, which has a basic monthly charge of ¥980
(including tax). On the other hand, data ARPU in the third quarter rose ¥190 from the end of the previous fiscal year to¥1,790, and accounted for 43.7% of total ARPU.
The average acquisition commission per user during the third quarter was ¥38,300.

(Yen per month)Fiscal year ended March 31, 2008

Fiscal year ending March 31, 2009

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Total

5,000

4,800

4,520

4,310

4,180

4,170

4,090

—

(Voice)

3,590

3,340

3,040

2,710

2,530

2,460

2,300

—

(Data)

1,410

1,470

1,490

1,600

1,650

1,710

1,790

—

*3. Average Revenue Per User
*4. The name of the New Super Bonus discount was changed to Monthly Discounts on November 1, 2008.

7

Q4

SOFTBANK CORP. CONSOLIDATED FINANCIAL REPORTFor the nine-month period ended December 31, 2008

[Broadband Infrastructure]<<Summary of Segment Results>>
Net sales¥178,415 million( 8.1% decrease year-on-year)

Operating income¥36,606 million( 20.8% increase year-on-year)

Total installed lines for Yahoo! BB ADSL: 4,427,000 (at the end of December 2008).
Progress was made in improving the operating margin by reducing expenses.

<Analysis of Results>
Net sales totaled ¥178,415 million, down ¥15,744 million, or 8.1%, year-on-year.

Operating income was ¥36,606

million, which was ¥6,310 million, or 20.8%, higher year-on-year. Revenue from the ADSL business of core company
SOFTBANK BB is trending lower on a decline in installed lines, but the trend of profit growth continues because oflower depreciation for telecommunications equipment and leasing expenses etc.
<Quarterly Results>(Millions of yen)
Fiscal year ended March 31, 2008

Fiscal year ending March 31, 2009

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Sales

65,74764,07264,34063,90860,12759,91158,376—

Operatingincome8,665

10,32011,3099,404

10,475

11,78914,341—<Overview of Operations>
The number of installed lines for Yahoo! BB ADSL, the comprehensive broadband service provided by SOFTBANK BB,
totaled 4,427,000 lines at the end of the third quarter, and ARPU on a customer payment basis for the quarter was ¥4,278.
SOFTBANK BB launched the Yahoo! BB White Plan two ceilings ADSL service, with a basic rate of as low as ¥980,
on December 1, 2008.

The SoftBank Keitai Set Discount, a bundled service for users of both the Yahoo! BB White Planand SOFTBANK MOBILE 3G phones, was also launched on the same day.

By cross-selling with SOFTBANKMOBILE, SOFTBANK BB is creating synergies across the Group companies, which leads to enhanced competitiveness.

8

SOFTBANK CORP. CONSOLIDATED FINANCIAL REPORTFor the nine-month period ended December 31, 2008

[Fixed-Line Telecommunications]<<Summary of Segment Results>>
Net sales¥268,655 million( 1.0% decrease year-on-year)

Operating income¥11,335 million( 6.6 times increase year-on-year)

Total installed lines for OTOKU Line: 1,544,000 (at the end of December 2008).
As a result of fixed cost reduction and increase in number of lines for OTOKU Line, operating income increased 6.6
times year-on-year.

<Analysis of Results>
Net sales were ¥268,655 million, down ¥2,797 million, or 1.0%, year-on-year.

Operating income totaled ¥11,335

million, an increase of 6.6 times year-on-year. At the core company SOFTBANK TELECOM, revenue from theOTOKU Line direct connection fixed-line voice service and from corporate sales of mobile phones continued to increasesteadily, but the downward trend in revenue from existing voice services including MY LINE and from international
telephone services continued.

Nevertheless, the segment is showing a trend of profit growth through the improvementof management efficiency including continued fixed cost reduction, and also from the increase in the number of lines
with high profitability such as OTOKU Line and Ether Connect.
<Quarterly Results>(Millions of yen)
Fiscal year ended March 31, 2008

Fiscal year ending March 31, 2009

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Sales

90,486

90,98689,97999,28888,45390,00590,196—

Operatingincome (loss)

(111)

460

1,375

1,615

798

4,759

5,777

—

<Overview of Operations>
SOFTBANK TELECOM continues to utilize its core OTOKU Line service to expand its corporate customer base.

The

number of OTOKU Line lines installed is increasing steadily, and stood at 1,544,000 as of the end of the period, for an
increase of 143,000 from the end of the previous fiscal year.

Corporate customers constituted 75.8% of the total numberof lines, and this figure continues to rise.
SOFTBANK TELECOM launched the White Line 24 discount service in June 2008, which provides free domestic
voice calls, 24 hours a day, between subscribers of SOFTBANK TELECOM’s OTOKU Line service and SoftBank
mobile phones (White Plan). In December 2008, SOFTBANK TELECOM announced the launch of White Office, a
corporate FMC*5 service that will allow mobile phones to be used as extension lines of fixed-line telephones, scheduled
for the end of March 2009.

SOFTBANK TELECOM will keep working to enhance synergies with the Mobile

Communications segment and further strengthen the corporate business.
*5. FMC: Fixed Mobile Convergence service, telecommunications services that integrate the functions of mobile communications andfixed-line telecommunications.

9SOFTBANK CORP. CONSOLIDATED FINANCIAL REPORTFor the nine-month period ended December 31, 2008

[Internet Culture]<<Summary of Segment Results>>
Net sales¥189,833 million(7.3% increase year-on-year)

Operating income¥92,060 million(9.9% increase year-on-year)<Analysis of Results>
Net sales increased by ¥12,908 million year-on-year, or 7.3%, to ¥189,833 million. Operating income increased by¥8,280 million, or 9.9%, to ¥92,060 million.
<Quarterly Results>(Millions of yen)
Fiscal year ended March 31, 2008

Fiscal year ending March 31, 2009

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Sales

52,796

57,623

66,50570,71762,326

63,25964,247—

Operatingincome27,14827,76628,864

31,45730,54230,64530,872—<Overview of Operations>
In the advertising business of Yahoo Japan Corporation, the core company of the segment, display advertising sales grewfirmly on the strength of substantial growth in behavioral targeting and demographic targeting advertising compared withthe same period in the previous fiscal year, and expansion in the number of partner sites due to the progress in developing
the ad network. Paid search advertising sales also advanced favorably compared with the same period in the previous
fiscal year due to the full scale start of the interest-linked advertising Interest Match™ and the increase in use of paid
search advertising by companies outside the Yahoo Group based on the it’s pursuit of an open strategy.
In business services other than advertising, Yahoo! Shopping continued its efforts during the period such as
developing sales promotions in line with its sales drive during the year-end shopping season as well as simplification of
the shopping procedures and the addition of shopping item review functions.

As a result, monthly transaction volume

for December hit a record high and mobile transaction volume also expanded substantially.

Based on their continued

efforts to acquire new stores, at the end of December, the number of merchant stores registered on Yahoo! Shopping andYahoo! Auctions totaled 32,673, expanding by 2,450 stores, or 8.1% year-on-year. Tenant and commission fees forYahoo! Shopping and Yahoo! Auctions also expanded favorably helped by the upward revision in Yahoo! Auctions store
royalties that began in December.
In the personal service business, due to efforts by the Yahoo! Premium service to add special benefits for members,
such as member-exclusive services, and to increase value-added content, the number of Yahoo! Premium membership IDs
rose to a record high and sales expanded favorably.

At the end of December, the number of Yahoo! Premium

membership IDs amounted to 7.26 million IDs, rising 7.7% year-on-year.

10

SOFTBANK CORP. CONSOLIDATED FINANCIAL REPORTFor the nine-month period ended December 31, 2008

[e-Commerce]<<Summary of Segment Results>>
Net sales¥192,687 million(1.2% decrease year-on-year)¥3,802 million(30.7% increase year-on-year)

Operating income<Analysis of Results>
Net sales were ¥192,687 million, which was ¥2,420 million, or 1.2%, lower year-on-year.

Operating income was ¥3,802

million, for a ¥892 million, or 30.7%, year-on-year increase.
<Quarterly Results>(Millions of yen)
Fiscal year ended March 31, 2008

Fiscal year ending March 31, 2009

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Sales

61,66063,812

69,63475,61562,45965,52264,706—

Operatingincome

1,167

933

809

246

1,009

1,737

1,055

—

<Overview of Operations>Core company SOFTBANK BB’s commerce & service division posted solid sales of hardware and software to retailcustomers, but the deterioration in the market environment in autumn 2008 led to a large decline in corporate sales, andnet sales declined as a result.

On the other hand, continuous improvement of operational efficiency and readjustment of

the product mix supported revenue.

In addition, SoftBank SELECTION, launched in November 2007, began tocontribute to earnings as the lineup of mobile phone accessories was expanded and the number of stores handling theseproducts increased.
SOFTBANK BB will continue to pursue additional synergies with the Group’s telecommunications companies as itstrengthens its sales of mobile phone accessories, PC software and corporate business.

[Others]<Analysis of Results>
Net sales decreased by ¥8,399 million year-on-year, or 11.2%, to ¥66,564 million.

The operating loss was ¥230 million,

compared with a loss of ¥3,268 million in the same period of the previous fiscal year.
This segment includes the Technology Services business (SOFTBANK TECHNOLOGY CORP.), the Media &Marketing business (mainly SOFTBANK Creative Corp. and ITmedia Inc.), the Overseas Funds business, and Other
businesses (mainly TV Bank Corporation and Fukuoka Softbank Hawks Corp.).
Broadmedia Corporation, which belonged to the Broadmedia segment that was previously included in this segment,changed from a consolidated subsidiary to an equity-method affiliate as the result of a capital increase via third-party
allotment of shares carried out on May 16, 2008.

The Broadmedia segment was therefore disbanded in the first quarter.

11

SOFTBANK CORP. CONSOLIDATED FINANCIAL REPORTFor the nine-month period ended December 31, 2008

<Quarterly Results>(Millions of yen)
Fiscal year ended March 31, 2008

Fiscal year ending March 31, 2009

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Sales

24,871

26,90723,18424,90921,81824,18920,556—

Operatingincome (loss)

(689)

38

(2,617)(1,852)

(758)

3,383

(2,855)—(Reference: Quarterly Results)
Net sales for the third quarter (three-month period from October 1 to December 31, 2008) totaled ¥653,264 million, adecrease of ¥40,755 million, or 5.9%, year-on-year.

Operating income was ¥94,690 million, an increase of ¥2,248 million,

or 2.4%, year-on-year.
Ordinary income came to ¥57,178 million, a decrease of ¥63,654 million, or 52.7%, year-on-year.

While recording a¥58,433 million gain from equity in earnings of affiliated companies in the same period of the previous fiscal year, in thethird quarter of the current fiscal year, a ¥6,050 million equity in loss under the equity-method, was recorded as a
non-operating expense, as the deterioration in equity prices during the period led to a downturn in the performance ofequity-method applied investment funds. The primary component of the year-earlier gain was ¥57,223 million from the
new listing of Alibaba.com Limited, a subsidiary of the Group’s equity-method affiliate, Alibaba Group Holding Limited,on the Hong Kong Stock Exchange on November 6, 2007.
Net income for the third quarter was ¥17,066 million, a decrease of ¥29,667 million, or 63.5%, year-on-year.
Results by business segment are as follows:[Mobile Communications]
Net sales totaled ¥376,861 million, a decrease of ¥29,220 million, or 7.2%, year-on-year.
¥7,013 million, or 13.0%, year-on-year to ¥46,747 million.

Operating income decreased by

There was a decline in handset sales at SOFTBANK MOBILE.

In addition, commissions on handset upgrades declined, but depreciation of fixed assets and amortization of software
increased.

As a result, operating income decreased.

[Broadband Infrastructure]
Net sales came to ¥58,376 million, a decrease of ¥5,964 million, or 9.3%, year-on-year, with a ¥3,032 million, or 26.8%,
year-on-year increase in operating income to ¥14,341 million.

Net sales at SOFTBANK BB’s ADSL business is trending

lower on declines in the total number of installed lines, but the steady trend of profit growth continues because of lower
depreciation for telecommunications equipment and leasing expenses etc.

12

SOFTBANK CORP. CONSOLIDATED FINANCIAL REPORTFor the nine-month period ended December 31, 2008

[Fixed-line Telecommunications]
Net sales were ¥90,196 million, an increase of ¥217 million, or 0.2%, year-on-year. Operating income totaled ¥5,777
million, an increase of ¥4,402 million, or 320.1%, year-on-year. At SOFTBANK TELECOM, revenue from the MY
LINE and other existing voice services continued to decline.

Nevertheless, the segment is showing a trend of profit

growth through the improvement of management efficiency including continued fixed cost reduction, and also from theincrease of lines with high profitability such as OTOKU Line and Ether Connect.

[Internet Culture]
Net sales totaled ¥64,247 million, a decrease of ¥2,257 million, or 3.4%, year-on-year. Operating income came to ¥30,872
million, an increase of ¥2,007 million, or 7.0%, year-on-year.

[e-Commerce]
Net sales were ¥64,706 million, a decrease of ¥4,928 million, or 7.1% year-on-year.

However, a ¥246 million, or 30.5%,

year-on-year increase in operating income to ¥1,055 million was recorded.

[Others]
Net sales were ¥20,556 million, a decrease of ¥2,627 million, or 11.3%, year-on-year.
¥2,855 million compared to ¥2,617 million in the same period of the previous fiscal year.

13

The operating loss amounted toSOFTBANK CORP. CONSOLIDATED FINANCIAL REPORTFor the nine-month period ended December 31, 2008

2. Qualitative Information on Consolidated Financial Position<<Summary of the Consolidated Financial Position>>
Total assets¥4,302,673 million(5.6% decrease year-on-year)

Total liabilities¥3,458,976 million(6.8% decrease year-on-year)¥843,697 million(0.6% decrease year-on-year)

EquityCash flows from operating activities¥270,768 million provided

Cash flows from investing activities¥223,120 million used

Cash flows from financing activities¥149,508 million used

Balance of cash and cash equivalents¥383,703 million(¥106,563 million decrease from the endof March 2008)

1. Assets, Liabilities and Equity
Assets, liabilities, and equity as of the end of the third quarter were as follows:(1) Current Assets
Current assets decreased by ¥147,261 million from the end of the previous fiscal year, to ¥1,435,483 million. This decrease
was primarily due to a decline of ¥107,814 million in cash and deposits as the result of the acquisition of treasury stock by
Yahoo Japan Corporation, and the repayment of interest-bearing debt by Yahoo Japan Corporation, SOFTBANK MOBILE
and SOFTBANK CORP. (hereinafter ‘the Company’). In addition a decrease of ¥22,952 million in deferred tax assets
occurred.
In the Mobile Communications segment, SOFTBANK MOBILE procured cash by securitizing a portion of theinstallment sales receivables from installment sales of mobile handsets. Total cash procured from this securitization in thethird quarter came to ¥45,655 million, with ¥57,278 million having been procured during the second quarter (see “(2) Major
Financing Activities” on page 17). These procured funds were recorded as borrowings, and entrusted installment salesreceivables were recorded as notes and accounts receivable-trade.

14

SOFTBANK CORP. CONSOLIDATED FINANCIAL REPORTFor the nine-month period ended December 31, 2008

(2) Fixed Assets
Property and equipment, net, decreased by ¥18,669 million from the end of the previous fiscal year, to ¥1,010,595 million.
This decline was primarily due to depreciation and amortization.

Intangible assets decreased by ¥700 million from the endof the previous fiscal year, to ¥1,237,608 million. This included a ¥46,398 million increase in goodwill associated withmaking SOFTBANK TELECOM PARTNERS Corp. a consolidated subsidiary of SOFTBANK TELECOM, and from theacquisition of treasury stock by Yahoo Japan Corporation.

This was more than offset, however, by ¥45,992 million inamortization of goodwill mainly relating to SOFTBANK MOBILE and SOFTBANK TELECOM. Investments and otherassets decreased by ¥88,443 million from the end of the previous fiscal year, to ¥617,319 million. This decrease wasprimarily the result of a ¥134,775 million decrease in investment securities associated with a decline in the share price ofYahoo! Inc. in the U.S.
(3) Current Liabilities
Current liabilities increased by ¥9,946 million from the end of the previous fiscal year, to ¥1,250,650 million. Althoughaccounts payable-trade decreased by ¥58,963 million and accounts payable-other and accrued expenses decreased by¥51,435 million, short-term borrowings increased by ¥109,117 million and lease obligations grew ¥13,411 million.
Short-term borrowings, primarily by the Company under the credit line facility, increased by ¥85,499 million, and of thefunds procured by SOFTBANK MOBILE via the securitization of installment sales receivables, the current portion increasedby ¥20,127 million.

(4) Long-term Liabilities
Long-term liabilities decreased by ¥261,146 million from the end of the previous fiscal year, to ¥2,208,325 million. Thisdecrease consisted primarily of declines of ¥151,733 million in long-term debt and ¥50,556 million in corporate bonds.
At the Mobile Communications segment, the balance of long-term debt procured by SOFTBANK MOBILE through thewhole business securitization financing scheme decreased by ¥68,777 million from the end of the previous fiscal year, to¥1,207,711 million.
(5) Equity
Equity decreased by ¥5,027 million from the end of the previous fiscal year, to ¥843,697 million. Retained earnings
increased by ¥55,344 million, but the net unrealized gain on other securities and foreign currency translation adjustments
decreased by ¥54,639 million and ¥33,221 million, respectively.

The decline in foreign currency translation adjustments

was the result of the yen’s appreciation at the end of the period, which led to a decline in the value of equity at overseas
subsidiaries.

15

SOFTBANK CORP. CONSOLIDATED FINANCIAL REPORTFor the nine-month period ended December 31, 2008

2. Cash Flows
During the nine-month period, net cash provided by operating activities was ¥270,768 million, net cash used in investing
activities was ¥223,120 million, and net cash used in financing activities was ¥149,508 million.

As a result, free cash flow(the combined net cash flows from operating activities and investing activities) for the nine-month period totaled ¥47,647
million.

At the end of the period, cash and cash equivalents totaled ¥383,703 million, a decrease of ¥106,563 million fromthe end of the previous fiscal year.
<Trend of Cash Flows>
Fiscal year ended March 31, 2008
Q1
Q2
Q3
Q4
Cash flows from operating
activities
Cash flows from investing
activities(Reference) free cash flow*(Millions of yen)
Fiscal year ending March 31, 2009
Q1
Q2
Q3
Q4

(27,478)

27,92256,812

101,001

52,899124,307

93,561—(111,519)(115,766)(46,349)(48,826)(90,769)(74,334)(58,016)—(138,997)(87,843)

10,462

52,175(37,869)

49,97235,545—(49,689)(67,564)—

419,498

419,186—

419,186

383,703—

Cash flows from financing
218,480
85,045(2,311) (16,487) (32,254)
activities
Cash and cash equivalents,
377,520457,727 452,771 460,278 490,266
beginning of period
Cash and cash equivalents,
457,727452,771 460,278 490,266 419,498
end of period* The combined net cash flows from operating activities and investing activities(1) Cash Flows from Operating Activities: ¥270,768 million net inflow

Income before income taxes and minority interests for the period totaled ¥174,097 million, while non-cash items included
depreciation and amortization of ¥174,736 million and amortization of goodwill of ¥45,992 million.

Other adjustment

items included interest expense of ¥85,220 million, which were added to income before income taxes and minority interests
for the period.

Receivables-trade turned to a decline, having an ¥8,528 million positive impact on operating cash flow,

while a decline in payables-trade had a negative impact of ¥63,991 million.

In addition, interest paid was ¥77,812 million,

and income taxes paid by Yahoo Japan Corporation and other entities came to ¥60,576 million.
(2) Cash Flows from Investing Activities: ¥223,120 million net outflow
Capital expenditure in the form of purchases of property and equipment and intangibles, mainly at the telecommunications
segments, totaled ¥196,347 million.

Purchases of securities and investment securities totaled ¥29,305 million.

In

addition, SOFTBANK TELECOM’s acquisition of additional shares of SOFTBANK TELECOM PARTNERS Corp.,
making it a consolidated subsidiary of SOFTBANK TELECOM etc., resulted in an outlay of ¥17,530 million for theacquisition of interests in subsidiaries newly consolidated.
As a result, free cash flow for the period was positive at ¥47,647 million.

(3) Cash Flows from Financing Activities: ¥149,508 million net outflow
Proceeds from long-term debt totaled ¥153,276 million, and short-term borrowings increased ¥83,312 million.

Proceeds of¥67,225 million were recorded from the sale and lease back of equipment newly acquired, mainly at the Mobile

16

SOFTBANK CORP. CONSOLIDATED FINANCIAL REPORTFor the nine-month period ended December 31, 2008

Communications segment.

In terms of outflows, the repayment of long-term debt and lease obligations totaled ¥268,347

million and ¥60,294 million, respectively. Bond redemptions came to ¥57,703 million, and there was a ¥53,579 million
outlay for the purchase of treasury stock of consolidated subsidiaries, mainly at Yahoo Japan Corporation.

[Reference](1) Major Investing Activities
The major investing activities in the nine-month period were as follows:
Investee Company

Investor Company

SOFTBANK TELECOM
PARTNERS Corp.

SOFTBANK TELECOM Corp.

Oak Pacific Interactive

SOFTBANK CORP.

Net Cash Outflow

Voting Rights¥17,204 million(*)

100.0%¥10,240 million

14.1%* This is the amount after subtracting ¥8,325 million of cash and cash equivalents and others, which SOFTBANK TELECOM
PARTNERS Corp. held at the acquisition, from acquisition cost of ¥25,530 million.

(2) Major Financing Activities
The major financing activities in the nine-month period were as follows:
Item

Company Name

Stock buyback by
subsidiaries in
consolidation
Securitization ofreceivables

Yahoo Japan
Corporation

Increase or
decrease in debt
and others

SOFTBANK CORP.

SOFTBANKMOBILE Corp.

SOFTBANKMOBILE Corp.
SOFTBANKTELECOM Corp.
Yahoo Japan
Corporation

Details

Summary

Implementation of the stockbuyback by Yahoo Japan
Corporation
Procurement of funds
totaling ¥45,343 million
accompanying securitizationof mobile phone installment
sales receivables (recorded
as borrowings)
Procurement of funds
totaling ¥57,278 million
accompanying securitizationof mobile phone installment
sales receivables (recorded
as borrowings)
Procurement of funds
totaling ¥45,655 million
accompanying securitizationof mobile phone installment
sales receivables (recorded
as borrowings)
Increase ¥70,499 million(net)

Buyback Period:
June 2, 2008 to July 10, 2008
Total amount of buyback: ¥51,639 million
Procurement date: June 27, 2008
Redemption method:monthly pass-through repayment
Use: capital investment and repayment offunds raised via the whole businesssecuritization financing scheme
Procurement date: September 29, 2008
Redemption method:monthly pass-through repayment
Use: capital investment and repayment offunds raised via the whole businesssecuritization financing scheme
Procurement date: December 29, 2008
Redemption method:monthly pass-through repayment
Use: capital investment and repayment offunds raised via the whole businesssecuritization financing scheme

Decrease ¥68,777 million

Repayment of funds raised via the wholebusiness securitization financing scheme

Decrease ¥11,382 million
Decrease ¥20,000 million

17

SOFTBANK CORP. CONSOLIDATED FINANCIAL REPORTFor the nine-month period ended December 31, 2008

Item

Company Name

Bond redemption

SOFTBANK CORP.

Details
20th Unsecured StraightBond
21st Unsecured StraightBond
23rd Unsecured Straight
Bond

Implementation ofcapital investment
through financelease agreements

SOFTBANKMOBILE Corp. etc.

Implementation of capital
expenditure mainly formobile communications
utilizing lease agreements

18

Summary
Date of redemption: June 9, 2008
Aggregate amount of redemption:¥12,500 million
Date of redemption: September 12, 2008
Aggregate amount of redemption:¥20,000 million
Date of redemption: November 28, 2008
Aggregate amount of redemption:¥20,000 million
Funds procured during this period :¥67,225 million

SOFTBANK CORP. CONSOLIDATED FINANCIAL REPORTFor the nine-month period ended December 31, 2008

3. Qualitative Information on Consolidated Earnings Forecasts
In the Consolidated Financial report for the interim period ended September 30, 2008 (six-month period from April 1 to
September 30, 2008) released on October 29, 2008, the Group disclosed the business forecast of consolidated operating
income, consolidated cash flows from operating activities, consolidated cash flows from investing activities andconsolidated free cash flow.

In view of the latest earnings trends, the consolidated cash flows from operating activities, theconsolidated cash flows from investing activities and the consolidated free cash flow have been revised upwardly. Nochanges have been made in the forecast of consolidated operating income.

For more details, please refer to the relatedpress release “Announcement Regarding Revision of Earnings Forecasts” issued on February 5, 2009.
The Group will continue to put efforts into cash flow focused operations in order to further enhance the free cash flow.
<Business Forecast>(Billions of yen)
Actual of fiscal year ended

Forecast of fiscal year

Forecast of fiscal year

March 31, 2008 (FY2007)

ending March 31, 2009

ending March 31, 2010

(FY2008)(FY2009)

Consolidated
operating
324.2
340.0
incomeConsolidated cash flows
158.2
420.0 - 430.0
from operating activities
Consolidated cash flows(322.4)(280.0) - (270.0)
from investing activities
Consolidated free cash
(164.2)150.0
flow** The combined net consolidated cash flows from operating activities and investing activities

420.0
500.0
(250.0)250.0

Consolidated net sales are greatly influenced by the sales method used for mobile handsets and this makes forecasting
the business results difficult.

The Company holds a variety of investment securities and invests in funds that arevulnerable to the market environment, and this makes equity in earnings under the equity-method and special income/loss
difficult to estimate.

Therefore business forecasts for consolidated ordinary income and consolidated net income are alsodifficult to disclose at this point.

19

SOFTBANK CORP. CONSOLIDATED FINANCIAL REPORTFor the nine-month period ended December 31, 2008

4. The SOFTBANK GroupAs of December 31, 2008, the Group comprises of the Company (pure holding company) and the following nine businesssegments.

The number of consolidated subsidiaries and equity-method companies in each business segment is asfollows.

Consolidated
subsidiaries

Equity-method
non-consolidated
subsidiaries andaffiliates

Mobile Communications

6

2

Broadband Infrastructure

43

Fixed-line Telecommunications

4-

Internet Culture

15

19

e-Commerce

7

4

Others(*2)

69

50

105

78

Business segments

Total

Main business of segment and name of business

Provision of mobile communication services and sale of mobile
phones accompanying the services etc.
(Core company: SOFTBANK MOBILE Corp.)
Provision of ADSL and fiber-optic high-speed Internet connection
service, IP telephony service, and provision of content etc. (Corecompany: SOFTBANK BB Corp.(*1))
Provision of fixed-line telecommunications and data center
service etc.
(Core companies: SOFTBANK IDC Corp., SOFTBANKTELECOM Corp. (*1))
Internet-based advertising operations, portal business andauction business etc.
(Core company: Yahoo Japan Corporation (*1))
Distribution of PC software and hardware including PCs andperipherals, enterprise solutions, and diversified e-commercebusinesses, including business transaction platforms (B2B)
and consumer-related e-commerce (B2C) etc.
(Core companies: SOFTBANK BB Corp. (*1) Vector Inc.,
Carview Corporation)
Technology Services, Media & Marketing, Overseas Funds,
and Other businesses(Core companies: SOFTBANK TECHNOLOGY CORP.,SOFTBANK Creative Corp., ITmedia Inc., Fukuoka Softbank
Hawks Marketing Corp.)（Notes）*1. SOFTBANK BB Corp., SOFTBANK TELECOM Corp. and Yahoo Japan Corporation are included in as consolidated
subsidiaries in the Broadband Infrastructure, Fixed-line Telecommunications and Internet Culture segments, respectively, while
SOFTBANK BB Corp., SOFTBANK TELECOM Corp. and Yahoo Japan Corporation operate multiple businesses and theiroperating results are allocated to multiple business segments.
*2. Broadmedia Corporation, which belonged to the Broadmedia segment that was previously included in Others above, changed
from a consolidated subsidiary to an equity-method affiliate as the result of a capital increase via third-party allotment of shares
implemented on May 16, 2008. The Broadmedia segment was therefore disbanded in the first quarter.

［Listed Companies］
The following 5 SOFTBANK subsidiaries are listed on domestic stock exchanges as of December 31, 2008:
Company NameYahoo Japan Corporation

Listed ExchangeTokyo Stock Exchange 1st section
Jasdaq Securities Exchange

SOFTBANK TECHNOLOGY CORP.

Tokyo Stock Exchange 1st section

Vector Inc.

Osaka Securities Exchange Hercules

ITmedia Inc.

Tokyo Stock Exchange Mothers

Carview Corporation

Tokyo Stock Exchange Mothers

20

SOFTBANK CORP. CONSOLIDATED FINANCIAL REPORTFor the nine-month period ended December 31, 2008

5. Others(1) Significant Changes in Scope of Consolidation (Changes in Scope of Consolidation of Specified Subsidiaries)
There are no significant changes in scope of consolidation as of December 31, 2008.
(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 quarterly financial reporting and its implementation guidance“Accounting Standard for Quarterly Financial Reporting and its Implementation Guidance” (ASBJ Statement No.12
issued on March 14, 2007) and “Guidance on Accounting Standard for Quarterly Financial Reporting” (ASBJ Guidance
No.14 issued on March14, 2007) were applied for the period ended December 31, 2008. The consolidated financial
statements for the period ended December 31, 2008 were prepared by following “Regulations for Quarterly Consolidated
Financial Statements”.
[2] Application of accounting standard for measurement of inventories
Prior to April 1, 2008, inventories held for sale in the ordinary course of business were measured by primarily cost
determined by the moving-average method. “Accounting Standard for Measurement of Inventories”(ASBJ Statement
No.9 issued on July 5, 2006), which is effective for fiscal years beginning on or after April 1, 2008, was adopted for theperiod ended December 31, 2008. Due to the application of the accounting standard, inventories are measured byprimarily net selling value determined by the moving-average method. The effect of this change is not material.
[3] Application of practical solution on unification of accounting policies applied to foreign subsidiaries for consolidated
financial statements“Practical Solution on Unification of Accounting Policies Applied to Foreign Subsidiaries for Consolidated Financial
Statements” (ASBJ PITE No.18 issued on May 17, 2006) was applied for the period ended December 31, 2008 and thenecessary adjustments are reflected in the consolidated financial statements. The effect of this change is not material.
[4]Application of accounting standard for lease transactions
Prior to April 1, 2008, finance lease in which the ownership of leased assets was not transferred to lessees was permitted
to be accounted for as operating lease transactions. “Accounting Standard for Lease Transactions”(ASBJ Statement
No.13 issued on June 17, 1993 and revised on March 30, 2007) and “the Guidance on Accounting Standard for Lease
Transactions (ASBJ Guidance No.16 issued on January 18, 1994 and revised on March 30, 2007) were early adopted
from the fiscal year beginning on April 1 , 2008. They were applied for all lease transactions contracted after April 1,
2008, and the finance lease transactions are capitalized recognizing lease assets and lease obligations in the balance
sheet. The effect of this change is not material.
Finance lease transactions in which the ownership of leased assets was not transferred to lessees and contracted before
April 1, 2008 are permitted to be accounted for as operating lease transactions if certain “as if capitalized” information isdisclosed in the notes to the lessee’s financial statements.

21

SOFTBANK CORP. CONSOLIDATED FINANCIAL REPORTFor the nine-month period ended December 31, 2008

6. Consolidated Financial Statements(1) Consolidated Balance Sheets(Millions of yen)
As ofDecember 31, 2008

As ofMarch 31, 2008

AmountAmountASSETS
Current assets:
Cash and deposits
Notes and accounts receivable - tradeMarketable securities¥383,346¥491,161

883,2633,960

887,723
4,928

Merchandise

48,025

58,118Deferred tax assets

82,897

105,850

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

129,410

103,351(95,421)
1,435,483

1,582,744

Buildings and structures

73,79775,781

Telecommunications equipment

741,680744,037

Telecommunications service lines

81,17086,062

Land

22,55923,442

Construction in progress

38,23145,576

Other

53,15454,364

1,010,595

1,029,265

Goodwill

974,321974,435

Software

224,930

224,180

Other intangibles

38,356

39,693

1,237,608

1,238,309

330,222464,997

124,547

126,887

167,461

118,491(4,911)
617,319
2,865,523
1,666(4,613)705,763
2,973,337¥4,302,673¥4,558,901(68,388)

Fixed assets:
Property and equipment, net:

Total property and equipment
Intangible assets, net:

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

22

2,818

SOFTBANK CORP. CONSOLIDATED FINANCIAL REPORTFor the nine-month period ended December 31, 2008

Consolidated Balance Sheets(Millions of yen)
As ofDecember 31, 2008

As ofMarch 31, 2008

AmountAmountLIABILITIES AND EQUITYCurrent liabilities:
Accounts payable - trade
Short-term borrowings¥128,315¥187,279

557,689

448,571

Current portion of corporate bonds

45,00052,540Accounts payable - other and accrued expenses

313,015364,450

Income taxes payable

34,65635,079Current portion of lease obligations

83,181

69,770

Other current liabilities

88,791

83,012

Total current liabilities

1,250,650

1,240,704

Corporate bonds

394,655445,211Long-term debt

1,434,912

1,586,645

Deferred tax liabilities

32,463

41,977

Liability for retirement benefits

15,583

16,158

Allowance for point mileage

40,27243,809Lease obligations

236,038

241,496

Other liabilities

54,40094,172

Total long-term liabilities

2,208,325

2,469,472

Total liabilities

3,458,976

3,710,176

Common stock

187,670

187,422

Additional paid-in capital

211,988

211,740

Accumulated deficit(36,400)(91,744)

Less: Treasury stock

(212)

(206)

Total shareholders’ equity

363,046

307,213

Unrealized gain on available-for-sale securities

26,27480,914

Deferred gain (loss) on derivatives under hedge accounting

24,655(11,823)

Foreign currency translation adjustments(25,783)

7,437

Total valuation and translation adjustments

25,14676,529245

120

Minority interests

455,259

464,862

Total equity
Total liabilities and equity

843,697

848,725¥4,302,673¥4,558,901

Long-term liabilities:

Equity:Stock acquisition rights

23

SOFTBANK CORP. CONSOLIDATED FINANCIAL REPORTFor the nine-month period ended December 31, 2008

(2) Consolidated Statements of Income
For the nine-month period ended December 31, 2008
(Millions of yen)

Nine-month period ended
December 31, 2008
April 1, 2008 to
December 31, 2008
AmountNet sales
Cost of sales
Gross Profit¥1,982,262

1,019,719
962,543

Selling, general and administrative expenses

687,852

Operating income

274,690

Interest income
Foreign exchange gain, net
Other non-operating income
Non-operating income

1,092
1,309
5,325
7,727
85,2208,471
14,231

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

107,923

Ordinary income

174,494

Gain on sale of investment securities

2,980
2,407
2,972
1,380

Dilution gain from changes in equity interest
Gain on liquidation of a subsidiary
Other special income
Special income

9,740

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

3,907
3,673
2,556
10,137174,097

Income taxes:
Current

53,247

Deferred

29,361

Total income taxes

82,609Minority interests in net income
Net income¥58,182

33,30624

SOFTBANK CORP. CONSOLIDATED FINANCIAL REPORTFor the nine-month period ended December 31, 2008

For the three-month period ended December 31, 2008
(Millions of yen)Three-month period ended
December 31, 2008
October 1, 2008 to
December 31, 2008
AmountNet sales
Cost of sales
Gross Profit¥653,264

Selling, general and administrative expenses

228,992

329,582
323,682

Operating income

94,690Interest income
Foreign exchange gain, net
Other non-operating income
Non-operating income

226
691
2,142
3,059
28,1596,050
6,360Interest expense
Equity in loss of affiliated companies
Other non-operating expenses
Non-operating expenses

40,570Ordinary income

57,178Gain on liquidation of a subsidiary

2,972
553

Other special income
Special income

3,525

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

784
497
541
1,822
58,881
18,814

Deferred

11,959Total income taxes

30,774

Minority interests in net income

11,040Net income¥17,066

25

SOFTBANK CORP. CONSOLIDATED FINANCIAL REPORTFor the nine-month period ended December 31, 2008

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

Nine-month period ended
December 31, 2008
April 1, 2008 to
December 31, 2008
Cash flows from operating activities:
Income before income taxes and minority interests¥174,097

Adjustments for:
Depreciation and amortization

174,736

Amortization of goodwill

45,992Equity in loss of affiliated companies

8,471

Dilution gain from changes in equity interest, net(2,333)

Valuation loss on investment securities

3,907

Unrealized loss on valuation of investments and gain on sale of investments
at subsidiaries in the U.S., net
Gain on sales of marketable and investment securities, net

3,673

Foreign exchange gain, net(2,917)(714)

Interest and dividend income(1,875)Interest expense

85,220Changes in operating assets, and liabilities
Decrease in receivables - trade

8,528

Decrease in payables - trade(63,991)

Other, net(25,567)
Sub-total

407,226

Interest and dividends received

1,930Interest paid

(77,812)

Income taxes paid

(60,576)

Net cash provided by operating activities

270,768- Continued -26

SOFTBANK CORP. CONSOLIDATED FINANCIAL REPORTFor the nine-month period ended December 31, 2008

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

Nine-month period ended
December 31, 2008
April 1, 2008 to
December 31, 2008
Cash flows from investing activities:
Purchase of property and equipment, and intangibles¥ (196,347)

Purchase of marketable and investment securities
Proceeds from sale of marketable and investment securities(29,305)

Acquisition of interests in subsidiaries newly consolidated, net of cash acquired(17,530)

14,625

Other, net

5,437

Net cash used in investing activities(223,120)

Cash flows from financing activities:
Increase in short-term borrowings, net

83,312

Proceeds from long-term debt

153,276

Repayment of long-term debt

(268,347)

Redemption of bonds(57,703)

Exercise of warrants

495

Proceeds from issuance of shares to minority shareholders

952

Cash dividends paid

(2,674)

Cash dividends paid to minority shareholders(4,121)

Purchase of treasury stock of subsidiaries in consolidation(53,579)

Proceeds from sale and lease back of equipment newly acquired

67,225

Repayment of lease obligations(60,294)

Other, net(8,048)Net cash used in financing activities(149,508)

Effect of exchange rate changes
on cash and cash equivalents
Net decrease in cash and cash equivalents(3,062)(104,922)

Increase in cash and cash equivalents due to inclusion of newly consolidated subsidiaries

169

Decrease in cash and cash equivalents due to exclusion of previously consolidated subsidiaries(1,810)Cash and cash equivalents, beginning of the period

490,266

Cash and cash equivalents, end of the period¥383,703

27

SOFTBANK CORP. CONSOLIDATED FINANCIAL REPORTFor the nine-month period ended December 31, 2008

“Accounting Standard for Quarterly Financial Reporting and its Implementation Guidance” (ASBJ Statement No.12
issued on March 14, 2007) and “Guidance on Accounting Standard for Quarterly Financial Reporting” (ASBJ Guidance
No.14 issued on March14, 2007) were applied for the period ended December 31, 2008. The consolidated financial
statements for the period ended December 31, 2008 were prepared by following “Regulations for Quarterly Consolidated
Financial Statements”.
(4) Notes to Assumption of a Going Concern
There are no applicable items.

(5) Basis of Presentation of Quarterly Consolidated Financial Statements(Items descried “Qualitative Information/Financial Statements 5. Others” on page 21 are excluded.)
1. Changes in scope of consolidation(1) Changes in scope of consolidation are as follows:<Increase>
7 companies
Significant changes:
SOFTBANK TELECOM PARTNERS Corp.
<Decrease>
11 companies
Significant changes:
Broadmedia Corporation

Additionally acquired

Decreased in interest due to allocation of new stock to a third party(2) The number of consolidated subsidiaries after the changes:
105 companies
2. Changes in scope of equity method(1) Changes in scope of equity method are as follows:<Increase>
15 companies
Significant changes:
Broadmedia Corporation
Changed from a consolidated subsidiary<Decrease>
4 companies(2) The number of non-consolidated subsidiaries and affiliated companies under the equity method after the changes:
Non-consolidated subsidiaries under the equity method: 4 companies
Affiliated companies under the equity method: 74 companies
3. Application of consolidated taxation system
BB Mobile Corp., SOFTBANK MOBILE Corp., and its 4 subsidiaries, all of which are subsidiaries of the Company,
adopted the consolidated taxation system.

28

SOFTBANK CORP. CONSOLIDATED FINANCIAL REPORTFor the nine-month period ended December 31, 2008

(6) Notes(Consolidated Balance Sheets)
1. Accumulated depreciation of property and equipment
As of December 31, 2008
940,230

As of March 31, 2008
837,286

million yen

million yen

2. Contingent liability
SOFTBANK MOBILE Corp. (SOFTBANK MOBILE) has entrusted cash for the repayment of the straight bonds listed in thefollowing table, based on debt assumption agreements with a financial institution. The bonds are derecognized in the
Company’s consolidated balance sheets.
The trust has collateralized debt obligations (CDO) issued by a Cayman Islands based Special-Purpose Company (SPC). The
SPC has contracted a credit default swap agreement secured by debt securities (corporate bond), which refers to a certain
portion of the portfolio consisting of 160 referenced entities.
In case that defaults (credit events under the agreement) occur in excess of certain numbers of the referenced entities, theamount of redemption of the CDO will be reduced. In case of 7 defaults and in case of 8 or more defaults, the amount ofredemption will be reduced by ¥45,696 million and ¥75,000 million, respectively. Since SOFTBANK MOBILE continues tobe legally responsible for repayments of the bonds, losses equal to the reduced amount, which effects income before income
taxes and minority interests, will be recorded in the consolidated statements of income of the Company.
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.
SOFTBANK MOBILE received notices of the default of 6 referenced entities as of December 31, 2008 from Goldman Sachs
International, the arranger of the CDO.

As of December 31, 2008
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

29

SOFTBANK CORP. CONSOLIDATED FINANCIAL REPORTFor the nine-month period ended December 31, 2008

3. Assets pledged as collateral(1) For future lease liabilities
As of March 31, 2008

As of December 31, 2008
Assets pledged as collateral:
Notes and accounts receivable - trade

9,595

10,181

million yen

million yen

In addition to above, amounts eliminated in the consolidated balance sheets as an intercompany balance:
Notes and accounts receivable - trade

13,787 million yen

13,413 million yen

Note: The collateral for the future lease liabilities (finance lease accounted for as operating lease transactions) was
provided by mortgaging against the aggregate of the current and future receivables due from customers of certain
consolidated subsidiaries. The future lease liabilities at the end of each period are as follows:
As of December 31, 2008

As of March 31, 2008

5,321

8,121

Future lease liabilities(finance lease accounted for as operating lease transactions)million yen

million yen(2) For short-term borrowings and long-term debt
Assets pledged as collateral and secured liabilities by consolidated subsidiaries are as follows:
As of December 31, 2008

As of March 31, 2008

Assets pledged as collateral:
Cash and deposits

158,243

220,801

Notes and accounts receivable - trade359,837

330,157

Other current assets-

10

Buildings and structures

13,411

13,872

Telecommunications equipment

249,181

268,494

Telecommunications service lines

191

170

15,611

15,57659,023

152,638

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

-

240

855,500

1,001,961

million yen

As of December 31, 2008

million yen

As of March 31, 2008

Secured liabilities:
Accounts payable - trade
Short-term borrowings
Long - term debt
Total

1,447

1,204
3,818

4,724

1,302,484

1,378,900

1,307,508

million yen

1,385,072

million yen

SOFTBANK MOBILE shares owned by BB Mobile Corp. and BB Mobile Corp. shares owned by Mobiletech Corporation
are pledged as collateral for long-term debt (totaled to ¥1,207,711 million) resulting from the acquisition of SOFTBANKMOBILE, in addition to the assets pledged as collateral above.
The funds procured through the securitization of installment sales receivables of SOFTBANK Mobile, in the amount of¥185,999 million and ¥32,830 million, are recorded as “Short-term borrowings” and “Long-term debt,” respectively, as ofDecember 31, 2008. The installment sales receivables, equivalent to ¥218,829 million which is the amount of senior trust
certificate of the securitized installment sales receivables for this procurement, is included in “Notes and accountreceivable-trade,” along with the amount of trust beneficial certificate held by the SOFTBANK MOBILE. Trustee procured
the funds through asset backed loans, which are backed by these installment sales receivables.

30

SOFTBANK CORP. CONSOLIDATED FINANCIAL REPORTFor the nine-month period ended December 31, 2008

(Consolidated Statements of Income)For the nine-month period ended December 31, 2008
1. Selling, general and administrative expenses

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

Nine-month period ended
December 31, 2008
292,357 million yen
30,181

2. Unrealized loss on valuation of investments and gain on sale of investments at subsidiaries in the United States ofAmerica, net
Certain subsidiaries of the Company in the United States of America qualify as investment companies under the provisions of“American Institute of Certified Public Accountants Audit and Accounting Guide” investment companies (the AICPA Guide)
and account for the investment securities in accordance with the AICPA Guide.
The net changes in the fair value of the investments are recorded as “Unrealized loss on valuation of investments and gain onsale of investments at subsidiaries in the U.S., net” and gain or loss on sale of investments, computed based on the acquisition
cost, is also included in this account. The unrealized gain or loss on valuation of investments and gain or loss on sale ofinvestments included in “Unrealized loss on valuation of investments and gain on sale of investments at subsidiaries in the U.S.,
net” are as follows:
Nine-month period ended
December 31, 2008
Unrealized loss on valuation of investment
at subsidiaries in the U.S.,net
Gain on sale of investments
at subsidiaries in the U.S.,net
Total(3,725)52(3,673) million yen

31

SOFTBANK CORP. CONSOLIDATED FINANCIAL REPORTFor the nine-month period ended December 31, 2008

For the three-month period ended December 31, 2008
1. Selling, general and administrative expenses

Sales commission and sales promotion expenseThree-month period ended
December 31, 2008
97,778 million yen

Provision for allowance for doubtful accounts

7,433

2. Unrealized loss on valuation of investments and gain on sale of investments at subsidiaries in the United States ofAmerica, net
Certain subsidiaries of the Company in the United States of America qualify as investment companies under the provisions of“American Institute of Certified Public Accountants Audit and Accounting Guide” investment companies (the AICPA Guide)
and account for the investment securities in accordance with the AICPA Guide.
The net changes in the fair value of the investments are recorded as “Unrealized loss on valuation of investments and gain onsale of investments at subsidiaries in the U.S., net” and gain or loss on sale of investments, computed based on the acquisition
cost, is also included in this account. The unrealized gain or loss on valuation of investments and gain or loss on sale ofinvestments included in “Unrealized loss on valuation of investments and gain on sale of investments at subsidiaries in the U.S.,
net” are as follows:
Three-month period ended
December 31, 2008
Unrealized loss on valuation of investment
at subsidiaries in the U.S.,net
Gain on sale of investments
at subsidiaries in the U.S.,net
Total

(558)
61
(497) million yen(Consolidated Statements of Cash Flows)
For the nine-month period ended December 31, 2008
1. Reconciliation of cash and cash equivalents to the amounts presented in the accompanying consolidated balance sheets
As of December 31, 2008
Cash and deposits

383,346

Marketable securities

3,960

Time deposits with original maturity over three months(460)

Stocks and bonds with original maturity over three months(3,143)

Cash and cash equivalents

383,703

million yen

2. Scope of Purchase of property and equipment, and intangibles in the consolidated statements of cash flows“Purchase of property and equipment, and intangibles” are comprised of cash outflows from purchasing property and equipment,
and intangible assets (excluding goodwill) and long-term prepaid expenses.
3. Proceeds from sale and lease back of equipment newly acquired
Once SOFTBANK MOBILE purchases telecommunications equipment for the purpose of assembly, installation and inspection,
SOFTBANK MOBILE sells the equipment to lease companies for sale and lease back purpose. The leased asset and leaseobligation are recorded in the consolidated balance sheets.
The cash outflows from the purchase of the equipment from vendors are included in “Purchase of property and equipment, andintangibles” and the cash inflows from the sale of the equipment to lease companies are included in “Proceeds from sale andlease back of equipment newly acquired.”32

SOFTBANK CORP. CONSOLIDATED FINANCIAL REPORTFor the nine-month period ended December 31, 2008

(Leases)
Finance lease transactions“Accounting Standard for Lease Transactions”(ASBJ Statement No.13) and “the Guidance on Accounting Standard for Lease
Transactions (ASBJ Guidance No.16 ) were early adopted from the fiscal year beginning on April 1 , 2008.
(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.
(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 the note of 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 December 31, 2008

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

As of March 31, 2008

172,415(74,022)

179,479(66,202)(30,521)67,871

million yen(30,521)82,755

million yen

million yen

47,005(7,429)39,575

million yen

47,004(9,212)
37,792

17,979(6,302)(1,253)

16,701(7,503)(1,077)Net leased property

8,120

Intangible assets
Acquisition cost
Accumulated depreciation
Accumulated impairment loss

9,856
(4,835)(171)

Net leased property

4,849

Acquisition cost
Accumulated depreciation
Accumulated impairment loss

245,978(95,573)(31,770)

Net leased property

118,633

million yen

10,423

million yen

9,373(3,353)(169)
million yen

5,851

million yen

Total

33

253,838(83,288)(31,943)
million yen

138,606

million yen

SOFTBANK CORP. CONSOLIDATED FINANCIAL REPORTFor the nine-month period ended December 31, 2008

Long-term prepaid expenses relating to a lease contract, in which the contract term and payment term are different, for theperiod ended December 31, 2008 and March 31, 2008 are ¥20,924 million and ¥15,053 million, respectively and areincluded 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 December 31, 2008

Due within one year
Due after one year
Total

31,717
117,789
149,506

Balance of allowance for impairment loss on
leased property

16,499As of March 31, 2008

million yen

32,482
141,179
173,662

million yen

million yen

21,601

million yen[3]Lease payments, reversal of allowance for impairment loss on leased property, amounts equivalent to depreciation,interest expense and impairment loss for each period:
Nine-month period ended

Fiscal year ended

December 31, 2008

March 31, 2008

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

31,357

million yen

44,329

5,036

5,387

20,3108,241-

30,917
12,788
8,818

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

34

SOFTBANK CORP. CONSOLIDATED FINANCIAL REPORTFor the nine-month period ended December 31, 2008

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

As of December 31, 2008
Investment
Carrying
Differences
Cost
Amount
(1)
(2)
(3)

2.

Equity securities
Debt securities
Corporate bonds
OthersTotal

As of March 31, 2008
Investment
Carrying
Differences
AmountCost

27,44773,51946,071

29,219171,676

142,456

142
2,861
30,452142
2,845
76,507(16)
46,054

1,320
30,5401,318
172,994(2)
142,454

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

As of December 31, 2008

As of March 31, 2008

Carrying Amounts

Carrying Amounts

Foreign debt securities

¥700

¥700

Debt securities

398

368

Equity securities

78,58291,446

Investments in limited partnerships

6,748

6,725

-

2,519

(1)Held-to-maturity debt securities(2)Available-for-sale and other securities

Money Management Fund
Foreign debt securities

3.

-

958

Others

722

1,058

Total

¥87,152¥103,777

Investment securities evaluated at fair value under the provisions of “American Institute of Certified Public
Accountants Audit and Accounting Guide” Investment Companies
Certain subsidiaries of the Company in the United States of America qualify as investment companies under the provisions of“American Institute of Certified Public Accountants Audit and Accounting Guide” investment companies (the AICPA Guide)
and account for the investment securities in accordance with the AICPA Guide.
The carrying amounts of the investment securities at fair value recorded in the consolidated balance sheets at December 31,
2008 and March 31, 2008 are as follows:
As of December 31, 2008
Carrying amounts of investment securities at fair value recorded in consolidated balance sheets:

18,392 million yen

As of March 31, 2008
Carrying amounts of investment securities at fair value recorded in consolidated balance sheets:

26,042 million yen

35

SOFTBANK CORP. CONSOLIDATED FINANCIAL REPORTFor the nine-month period ended December 31, 2008

(Per Share Data)
1.

Shareholders’ equity per share
As of

As of

December 31, 2008

March 31, 2008

Shareholders’ equity per share (yen)2.

¥359.16

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

For the nine-month period ended December 31, 2008
April 1, 2008 to
December 31, 2008

Net income per share - primary (yen)¥53.84

Net income per share - diluted (yen)51.29

April 1, 2008 to
December 31, 2008

Basic data for computation of the per share data
1. Net income (in millions of yen)

58,182

2. Amounts not allocated to shareholders(in millions of yen)-

3. Net income allocated to common stock outstanding(in millions of yen)

58,182

4. Weighted average number of common stock outstanding
during period (unit: thousand of shares)

1,080,653

5. Adjustment for net income used to calculate diluted net income per share(in millions of yen)
- Adjustments for net income used to calculate diluted net income
per share in consolidated subsidiaries and affiliated companies- Interest expense (net of tax)
- Total

(27)
1,167
1,140

6. Increase of common stock used to calculate diluted net income per share(unit: thousand of shares)
7. Residual securities which do not dilute net income per share andhave significant changes from the end of previous fiscal year36

75,975-¥355.15

SOFTBANK CORP. CONSOLIDATED FINANCIAL REPORTFor the nine-month period ended December 31, 2008

For the three-month period ended December 31, 2008
October 1, 2008 to
December 31, 2008

Net income per share - primary (yen)¥15.79Net income per share - diluted (yen)15.09

October 1, 2008 to
December 31, 2008

Basic data for computation of the per share data
1. Net income (in millions of yen)

17,066

2. Amounts not allocated to shareholders(in millions of yen)-

3. Net income allocated to common stock outstanding(in millions of yen)

17,066

4. Weighted average number of common stock outstanding
during period (unit: thousand of shares)

1,080,783

5. Adjustment for net income used to calculate diluted net income per share(in millions of yen)
- Adjustments for net income used to calculate diluted net income
per share in consolidated subsidiaries and affiliated companies- Interest expense (net of tax)
- Total
6. Increase of common stock used to calculate diluted net income per share(unit: thousand of shares)
7. Residual securities which do not dilute net income per share andhave significant changes from the end of previous fiscal year

37

(7)
389
381
75,648-

SOFTBANK CORP. CONSOLIDATED FINANCIAL REPORTFor the nine-month period ended December 31, 2008

(7) Segment Information
1. Business segment information
For the nine-month period ended December 31, 2008 (From April 1, 2008 to December 31, 2008)(Millions of yen)Fixed-line

Internet

Elimination

MobileBroadband

Communications

Infrastructure

Telecommunications¥1,144,846¥173,958¥235,976¥187,278¥184,460¥55,742¥1,982,262¥-¥1,982,262

5,975

4,456

32,678

2,555

8,227

10,82264,715(64,715)-

Total

1,150,822

178,415

268,655

189,833

192,687

66,564

2,046,978(64,715)

1,982,262

Operating income (loss)

134,91136,606

11,33592,060

3,802

(230)

278,485(3,795)

274,690

e-Commerce

Others

Total

CultureConsolidated
or Corporate

Net sales(1) Customers(2) Inter-segment

For the three-month period ended December 31, 2008 (From October 1, 2008 to December 31, 2008)(Millions of yen)Fixed-line

Internet

Elimination

MobileBroadband

Communications

Infrastructure

Telecommunications(1) Customers¥374,679¥56,988¥79,347¥63,136¥62,168¥16,944¥653,264¥-¥653,264(2) Inter-segment

2,181

1,388

10,849

1,111

2,537

3,611

21,680(21,680)-

Total

376,861

58,376

90,19664,24764,706

20,556674,945(21,680)

653,264

Operating income (loss)

46,747

14,3415,777

30,872

1,055(2,855)95,938(1,248)

94,690e-Commerce

Others

Total

CultureConsolidated
or Corporate

Net sales

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

38

SOFTBANK CORP. CONSOLIDATED FINANCIAL REPORTFor the nine-month period ended December 31, 2008

2. Geographic segment information
For the nine-month period ended December 31, 2008 (From April 1, 2008 to December 31, 2008)(Millions of yen)
North

Japan

OthersAmerica

Elimination

Total

Consolidated

or corporate

Net sales(1)Customers¥1,971,335¥811¥10,115¥1,982,262¥-¥1,982,262

308

-

-

308

(308)

-

Total

1,971,644

811

10,115

1,982,571(308)

1,982,262

Operating income (loss)

277,254

2,459

(390)

279,322(4,632)

274,690(2)Inter-segment

For the three-month period ended December 31, 2008 (From October 1, 2008 to December 31, 2008)(Millions of yen)
North

Japan

OthersAmerica

Elimination

Total

Consolidated

or corporate

Net sales(1)Customers¥649,496¥242¥3,525¥653,264¥-¥653,264

88

-

-

88

(88)

-

Total

649,585

242

3,525

653,353(88)

653,264

Operating income (loss)

96,565

(451)

(151)

95,961(1,271)

94,960(2)Inter-segment

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

3. In the North America segment, Softbank Holdings Inc., a consolidated subsidiary of the company in the United States of America,
reversed a tax reserve for net worth taxes of ¥3,502 million and credited it to operating expenses.

3. Overseas sales
Disclosure of overseas sales for the nine-month and the three-month period ended December 31, 2008 is omitted because the total overseas
sales are less than 10% of total consolidated sales.

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

39

SOFTBANK CORP. CONSOLIDATED FINANCIAL REPORTFor the nine-month period ended December 31, 2008

[For Reference]
Consolidated Financial Statements for the nine-month and three-month period ended December 31, 2007
(1) Summary of Consolidated Statements of Income(Millions of yen)

Nine-month period ended
December 31, 2007
April 1, 2007 to
December 31, 2007
AmountNet sales
Cost of sales
Gross Profit¥2,058,765
1,086,108972,656

Selling, general and administrative expenses

712,467

Operating income

260,188

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

2,201
3,750
61,570

Other non-operating income
Non-operating income

3,894
71,417

Interest expense
Other non-operating expenses
Non-operating expenses

83,573
16,034
99,607

Ordinary income

231,998

Gain on sale of investment securities

5,925

Dilution gain from changes in equity interest
Unrealized appreciation on investments and gain on sale of investments
at subsidiaries in the U.S., net
Other special income
Special income
Valuation loss on investment securities
Loss on disposal of fixed assets
Impairment loss
Loss on unused telecommunications supplies

3,123
17,341
5,479
31,87011,7609,493
8,818
12,006

Other special losses
Special loss

4,525
46,603

Income before income taxes and minority interests

217,265

Income taxes:
Current

30,266

Deferred

63,875

Total income taxes

94,142

Minority interests in net income

29,925

Net income¥93,19640

SOFTBANK CORP. CONSOLIDATED FINANCIAL REPORTFor the nine-month period ended December 31, 2008

(Millions of yen)Three-month period ended
December 31, 2007
October 1, 2007 to
December 31, 2007
AmountNet sales
Cost of sales
Gross Profit¥694,020

Selling, general and administrative expenses

234,333

367,244326,775

Operating income

92,441

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

663
1,144
58,433

Other non-operating income
Non-operating income

989
61,231

Interest expense
Other non-operating expenses
Non-operating expenses

28,198
4,642
32,840Ordinary income

120,833

Gain on sale of fixed assets
Gain on sale of investment securities

2,731
1,218

Other special income
Special income

575
4,525

Valuation loss on investment securities
Unrealized loss on investments and gain on sale of investments
at subsidiaries in the U.S., net
Loss on disposal of fixed assets
Impairment loss
Loss on unused telecommunications supplies

1,594
1,483
5,500
8,818
12,006

Other special losses
Special loss

1,621
31,024

Income before income taxes and minority interests

94,334

Income taxes:
Current

13,458Deferred

24,800Total income taxes

38,258

Minority interests in net income

9,341

Net income¥46,734

41

SOFTBANK CORP. CONSOLIDATED FINANCIAL REPORTFor the nine-month period ended December 31, 2008

(2) Summary of Consolidated Statements of Cash Flows(Millions of yen)

Nine-month period ended
December 31, 2007
April 1,2007 to
December 31, 2007

Cash flows from operating activities:
Income before income taxes and minority interests¥217,265

Adjustments for:
Depreciation and amortization

163,277

Amortization of goodwill

44,261Equity in earnings of affiliated companies(61,570)

Dilution gain from changes in equity interest, net(848)

Impairment loss

8,818

Valuation loss on investment securities

11,760

Unrealized appreciation on investments and gain on sale of investments
at subsidiaries in the U.S., net
Gain on sale of marketable and investment securities, net(17,341)

Foreign exchange gain, net(6,190)(3,572)

Interest and dividend income(2,577)

Interest expense

83,573

Changes in operating assets, and liabilities
Increase in receivables-trade(221,519)

Decrease in payables-trade(41,614)

Other, net

10,674Sub-total

184,392

Interest and dividends received

2,349Interest paid

(76,925)

Income taxes paid

(52,560)

Net cash provided by operating activities

57,256- Continued -42

SOFTBANK CORP. CONSOLIDATED FINANCIAL REPORTFor the nine-month period ended December 31, 2008

Summary of Consolidated Statements of Cash Flows (Continued)(Millions of yen)

Nine-month period ended
December 31, 2007
April 1,2007 to
December 31, 2007
Cash flows from investing activities:
Purchase of property and equipment, and intangibles¥ (283,706)

Purchase of marketable and investment securities
Proceeds from sale of marketable and investment securities(36,087)
31,526

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

2,674

Sale of interests in subsidiaries previously consolidated, net
Proceeds from sale of interests in consolidated subsidiaries

(134)
1,012
11,080

Other, net
Net cash used in investing activities(273,635)

Cash flows from financing activities:
Decrease in short-term borrowings, net(78,309)

Decrease in commercial paper, net(5,000)

Proceeds from long-term debt

224,542

Repayment of long-term debt

(174,891)

Proceeds from issuance of bonds

89,463

Redemption of bonds(23,932)

Exercise of warrants

44,768Proceeds from issuance of shares to minority shareholders

6,865

Cash dividends paid

(2,635)

Cash dividends paid to minority shareholders(3,547)Purchase of treasury stock of subsidiaries in consolidation(316)

Proceeds from sale and lease back of equipment newly acquired

282,726

Decrease in cash receipts as collateral, net(20,000)

Repayment of lease obligations(33,412)

Other, net(5,105)

Net cash provided by financing activities

301,215

Effect of exchange rate changes
on cash and cash equivalents
Net increase in cash and cash equivalents(1,307)
83,529Decrease in cash and cash equivalents due to exclusion of previously consolidated subsidiaries(771)

Cash and cash equivalents, beginning of the period

377,520

Cash and cash equivalents, end of the period¥460,278

43

SOFTBANK CORP. CONSOLIDATED FINANCIAL REPORTFor the nine-month period ended December 31, 2008(3) Summary of Segment Information
1. Business segment information
For the nine-month period ended December 31, 2007 (From April 1, 2007 to December 31, 2007)(Millions of yen)
MobileFixed-line

Broadband

Internet

Elimination
e-Commerce

Others

Total

CultureConsolidated

Communications

Infrastructure

Telecommunications

or Corporate¥1,212,068¥189,592¥236,279¥174,033¥184,069¥62,721¥2,058,765¥-¥2,058,765

8,523

4,567

35,172

2,891

11,03812,24274,435(74,435)-

Total

1,220,591

194,160

271,452

176,925

195,10774,963

2,133,201(74,435)

2,058,765

Operating income (loss)

147,980

30,295

1,724

83,7792,910(3,268)263,421(3,232)

260,188

Net sales(1) Customers(2) Inter-segment

For the three-month period ended December 31, 2007 (From October 1, 2007 to December 31, 2007)(Millions of yen)
MobileFixed-line

Broadband

Internet

Elimination
e-Commerce

Others

Total

CultureConsolidated

Communications

Infrastructure

Telecommunications

or Corporate(1) Customers¥403,153¥62,842¥78,404¥65,171¥65,558¥18,889¥694,020¥-¥694,020(2) Inter-segment

2,928

1,498

11,574

1,333

4,076

4,295

25,705(25,705)-

Total

406,081

64,34089,97966,50569,63423,184

719,726(25,705)

694,020

Operating income (loss)

53,76011,3091,375

28,864809(2,617)93,501(1,059)92,441

Net sales

Notes:
1. Business segments are categorized primarily based on the nature of business operations, type of services, and similarity of sales channels,
etc. which the SOFTBANK Group uses for its internal management purpose.
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, andprovision of contents etc.

Fixed-line Telecommunications: Provision of fixed-line telecommunications service and data center 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, anddiversified e-commerce businesses, including business transaction platform (B2B) and consumer-related
e-commerce (B2C) etc.

Others: Broadmedia, Technology Services, Media & Marketing, Overseas funds, and other businesses

44

SOFTBANK CORP. CONSOLIDATED FINANCIAL REPORTFor the nine-month period ended December 31, 2008

2. Geographic segment information
For the nine-month period ended December 31, 2007 (From April 1, 2007 to December 31, 2007)(Millions of yen)North

Elimination

Japan

Others

Total

Consolidated

Americaor corporate

Net sales(1)Customers¥2,046,951¥1,050¥10,763¥2,058,765¥-¥2,058,765

406

-

212

619

(619)

-

Total

2,047,358

1,050

10,976

2,059,385(619)

2,058,765

Operating income (loss)

265,414

(839)

(383)

264,191(4,002)

260,188(2)Inter-segment

For the three-month period ended December 31, 2007 (From October 1, 2007 to December 31, 2007)(Millions of yen)North

Elimination

Japan

Others

Total

Consolidated

Americaor corporate

Net sales(1)Customers¥690,221¥286¥3,511¥694,020¥-¥694,020

106

-

63

169

(169)

-

Total

690,328

286

3,574

694,190(169)

694,020

Operating income (loss)

94,338

(430)

（156）

93,751(1,309)92,441(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 nine month and three-month period ended December 31, 2007 is omitted because the total overseas sales
are less than 10% of total consolidated sales.

45