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 nine-month period ended December 31, 2011
Tokyo, February 2, 2012

1. FINANCIAL HIGHLIGHTS(1) Results of Operations(Percentages are shown as year-on-year changes)(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, 2011

¥2,398,192

6.6¥532,783

10.5¥443,934

11.0¥250,081

75.7

Nine-month period ended
December 31, 2010

¥2,249,901

10.0¥482,159

31.6¥399,917

42.2¥142,299

50.0

Note: Comprehensive income
Nine-month period ended December 31, 2011:
Nine-month period ended December 31, 2010:

Nine-month period ended
December 31, 2011
Nine-month period ended
December 31, 2010

¥238,124 million (54.4%)¥154,243 million (-%)

Net income
per share－basic(yen)

Net income
per share－diluted(yen)¥227.83¥221.85¥131.47¥126.32(2) Financial Condition(Millions of yen; amounts less than one million yen are omitted.)

Total assets

Total equity

Equity ratio (%)

As of December 31, 2011

¥4,498,762¥1,321,124

18.6

As of March 31, 2011

¥4,655,725¥879,618

13.3

Note: Shareholders’equity
As of December 31, 2011:
As of March 31, 2011:¥835,256 million¥619,252 million

2. Dividends(Record date)Fiscal year ended
March 31, 2011
Fiscal year ending
March 31, 2012
Fiscal year ending
March 31, 2012
(Forecasted)

First quarter

Second quarter

Dividends per share
Third quarter

Fourth quarter

Total

(yen)

(yen)

(yen)

(yen)

(yen)

-

0.00

-

5.00

5.00

-

0.00

-

-

Note:
Revision of forecasts on the dividends: No
Dividend for the fiscal year ending March 31, 2012 is planned to be increased from ¥5 for the fiscal year ended March, 2011. However it is notdetermined at this point. The actual amount of dividend will be announced promptly upon resolution.

3. Forecasts on the consolidated operation results for the fiscal year ending in March 2012 (April 1, 2011 – March 31, 2012)(Percentages are shown as year-on-year changes)

Net sales
Amount(millions of yen)

Full financial year¥-

Operating income Ordinary income
Amount%% Amount%(millions of yen)-(millions of yen)

¥- -

¥-

-

Net income
Amount%

Net income
per share－basic(yen)(millions of yen)

¥- -

¥-

Note:
Revision of forecasts on the operation results: No
The SOFTBANK Group is planning to focus on network expansion and customer acquisition in the Mobile Communications segment. The initiatives
for achieving these strategies need to be planned and adjusted flexibly according to circumstances. Since this involves numerous unconfirmed
elements which could impact revenue and profit, it is difficult to disclose numerical earnings forecasts. However, revenue and operating income are
expected to increase year on year. To improve disclosure of information for shareholders and investors, the earnings forecast will be disclosed when
deemed to be reasonable.

4. Others(1) Significant Changes in Scope of Consolidation (Changes in Scope of Consolidation of Specified Subsidiaries):
Newly consolidated: One company SFJ Capital Limited
Excluded: None
Note: Please refer to page 20 “2. Notes on the Summary Information” for details.
(2) Application of special accounting methods for preparation for the consolidated financial statements:

Yes

No

(3) Changes in accounting policies, accounting estimates and retrospective restatements in the consolidated financial statements[1] Changes due to revisions in accounting standards:
No[2] Changes other than those in [1]:No
[3] Changes in accounting estimates:
No[4] Retrospective restatements:
No(4) Number of shares issued (Common stock)[1] Number of shares issued (including treasury stock):
As of December 31, 2011:
As of March 31, 2011:

1,107,728,781 shares
1,082,530,408 shares[2] Number of treasury stock:
As of December 31, 2011:
As of March 31, 2011:

9,213,447 shares
180,503 shares[3] Weighted average number of common stock:
As of December 31, 2011:
As of December 31, 2010:

1,097,670,072 shares
1,082,344,678 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 19 “1. Qualitative Information
Regarding Nine-month Period Results (3) Qualitative Information Regarding Consolidated Earnings Forecasts” for details of notes to precondition andusage for forecasts.
SOFTBANK CORP.'s Earnings Results Briefing will be held for media, institutional investors, and financial institutions on February 2, 2012 followedby the Analysts Briefing for institutional investors and financial institutions on February 3, 2012. The Earnings Results Briefing will be streamed liveon the Company's Web site in Japanese and English at (http://www.softbank.co.jp/en/irinfo/). The material used in the Analysts Briefing will be
uploaded the day before the briefing and the video on demand will be made available as soon as possible on the Company’s Web site afterwards.

SOFTBANK CORP. CONSOLIDATED FINANCIAL REPORTFor the nine-month period ended December 31, 2011

(Appendix)

Contents
1.

Qualitative Information Regarding Nine-month Period Results

p.2(1) Qualitative Information Regarding Consolidated Results of Operations

p.2

1. Consolidated Results of Operations

p.2

2. Results by Business Segment

p.5（Reference 1: Principal Operational Data）

p.10（Reference 2: Capital Expenditure and Depreciation）

p.13(2) Qualitative Information Regarding Consolidated Financial Position
1. Assets, Liabilities and Equity

p.14

2. Cash Flows

p.17（Reference: Major Financing Activities）

2.

3.

p.14

p.19

(3) Qualitative Information Regarding Consolidated Earnings Forecasts

p.19

Notes on the Summary Information

p.20

(1)

p.20

Significant Changes in Scope of Consolidation

Consolidated Financial Statements

p.21(1) Consolidated Balance Sheets

p.21(2) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income

p.23(3) Consolidated Statements of Cash Flows

p.27(4) Significant Doubt About Going Concern Assumption

p.29(5) Additional Information

p.29(6) Notes

p.29(7) Segment Information

p.32(8) Significant Changes in Shareholders’ Equity

p.32

1

SOFTBANK CORP. CONSOLIDATED FINANCIAL REPORTFor the nine-month period ended December 31, 2011

1.

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

Consolidated Results of Operations<Overview of results for the nine-month period from April 1 to December 31, 2011>
For the nine-month period ended December 31, 2011 (hereafter “the period”), the SOFTBANK Group (hereafter“the Group”) achieved consolidated net sales of ¥2,398,192 million, a ¥148,290 million (6.6%) increase comparedwith the same period of the previous fiscal year (April 1 to December 31, 2010, hereafter “year on year”), with a¥50,624 million (10.5%) increase in operating income to ¥532,783 million. This consolidated revenue and profit
growth was driven by strong performance in the Mobile Communications segment.
Ordinary income grew ¥44,017 million (11.0%) to ¥443,934 million. Net income rose ¥107,782 million (75.7%)
to ¥250,081 million.

This was largely attributable to a year-on-year rise of ¥96,735 million in special income, in

addition to the increase in operating income.
Note:
Definition of terms: as used in this consolidated financial report for the nine-month period from April 1, 2011, to December 31, 2011, 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.

The main factors affecting earnings for the period were as follows:(a) Net Sales
Net sales totaled ¥2,398,192 million, for a ¥148,290 million (6.6%) year-on-year increase. This was mainly due
to increased telecom service revenue, primarily from steady growth in the number of mobile phone subscribers.
Another factor was an increase in sales of mobile handsets following a rise in the number of handset upgrades due
to a sales promotion for iPhone 4S,1 which was launched in October 2011.
Note:
1.

iPhone and iPad are trademarks of Apple Inc.
The iPhone trademark is used under license from Aiphone K.K.

(b) Cost of Sales
Cost of sales rose ¥73,036 million (7.1%) year on year to ¥1,100,772 million.

This was primarily due to anincrease in the cost of sales for mobile handsets in the Mobile Communications segment as the number of handsets
shipped2 increased in line with the abovementioned sales promotion, along with higher depreciation andamortization expenses, mainly relating to the installation of additional base stations.
Note:
2.

Handsets shipped: handsets shipped (sold) to agents.

(c) Selling, General and Administrative Expenses
Selling, general and administrative expenses grew ¥24,629 million (3.3%) year on year to ¥764,635 million.
This was mainly because of an increase in the total amount of sales commissions paid3 in the Mobile
Communications segment, resulting from a rise in the number of handsets sold4 following the abovementioned
sales promotion.
Notes:
3.

Sales commissions paid to sales agents per new subscription and upgrade.

4.

Handsets sold: total of new subscriptions and handset upgrades

2

SOFTBANK CORP. CONSOLIDATED FINANCIAL REPORTFor the nine-month period ended December 31, 2011(d) Operating Income
As a result, operating income totaled ¥532,783 million, for a ¥50,624 million (10.5%) year-on-year increase. The
operating margin rose 0.8 of a percentage point year on year, to 22.2%.

(e) Non-operating Income / Expenses
Non-operating income totaled ¥8,340 million, a ¥6,703 million year-on-year decrease.
were ¥97,188 million, a ¥96 million year-on-year decrease.

Non-operating expenses

Interest expense decreased by ¥27,338 million as

SOFTBANK MOBILE Corp. (hereafter “SOFTBANK MOBILE”) paid off its SBM loan5 in October 2011.
Meanwhile, refinancing related expenses totaled ¥24,906 million.

These mainly comprised costs relating to theCompany’s newly procured funds for refinancing of the SBM loan, and repayment of the SBM loan, whichamounted to ¥23,943 million.
Note:
5.

The loan procured under a whole business securitization scheme as part of the loan for procurement of the acquisition finance for
Vodafone K.K. (currently SOFTBANK MOBILE).

(f) Ordinary Income
Ordinary income therefore totaled ¥443,934 million, for a ¥44,017 million (11.0%) year-on-year increase.

(g) Special Income
Special income totaled ¥108,422 million.

The main components of this were gain on sale of investment

securities of ¥83,687 million and dilution gain from changes in equity interest of ¥18,375 million.
The gain on sale of investment securities was primarily attributable to a ¥76,430 million gain on sale ofYahoo! Inc. shares. In connection with the Company’s financing of US$1,135 million from CITIBANK, N.A.
through one of its U.S. subsidiaries in February 2004, certain forward contracts (“collar transaction”) were enteredinto, which allowed the obligation to be settled at maturity by delivering Yahoo! Inc. shares held by this subsidiary.
The forward contracts were to effectively hedge the variability of cash flows associated with the future market
price of the underlying security.
During the second quarter, the obligation under the forward contracts was settled at maturity by effectively
delivering the shares of Yahoo! Inc. (book basis of US$142 million) to CITIBANK, N.A.

The cash proceeds

received by the Company’s aforementioned subsidiary from delivering the shares of Yahoo! Inc. to CITIBANK,
N.A. were then remitted to repay the related obligation.

Gain on sale of investment securities of ¥76,430 million(US$993 million) was recorded as a result of settling the forward contracts.
Dilution gain from changes in equity interest was recorded mainly in relation to the Company’s equity method
affiliate Renren Inc.’s listing on the New York Stock Exchange in May 2011.

3

SOFTBANK CORP. CONSOLIDATED FINANCIAL REPORTFor the nine-month period ended December 31, 2011(h) Special Loss
Special loss was ¥34,039 million.

The main components of the loss were a premium expense on advanced

repayment of long-term debt of ¥21,875 million and a valuation loss on investment securities of ¥9,321 million.
The premium expense occurred in relation to SOFTBANK MOBILE’s repayment of the abovementioned SBM
loan in October 2011. The valuation loss on investment securities was mainly associated with the drop in thestock price of Betfair Group plc in which the Group holds shares.

(i) Income Taxes
Provisions for current income taxes were ¥146,401 million and provisions for deferred income taxes were ¥75,165
million.

Total income taxes increased ¥22,527 million year on year to ¥221,566 million.

(j) Minority Interests in Net Income
Minority interests in net income totaled ¥46,669 million, mainly related to net income at Yahoo Japan Corporation(hereafter “Yahoo Japan”).

(k) Net Income
As a result of the above, net income totaled ¥250,081 million, for a ¥107,782 million (75.7%) year-on-yearincrease.

(l) Comprehensive Income
Comprehensive income was ¥238,124 million. Of this, comprehensive income attributable to owners of theparent was ¥194,502 million and comprehensive income attributable to minority interests was ¥43,622 million.

4

SOFTBANK CORP. CONSOLIDATED FINANCIAL REPORTFor the nine-month period ended December 31, 2011

2. Results by Business Segment
Note:
Principal operational data are shown on pages 10-12 “(Reference 1: Principal Operational Data).”(a) Mobile Communications(Millions of yen)

Nine-month Period
Ended
December 31, 2010

Nine-month Period
Ended
December 31, 2011

Net sales

1,458,620

1,619,177

160,556

11.0%

Operating income

314,486

346,478

31,992

10.2%

ChangeChange %6

・ 2,426,600 net subscriber additions

for the period
for the third quarter was ¥4,230, an ¥80 year-on-year9 decrease. Data ARPU amounted to¥2,530, a ¥200 year-on-year increase.

・ ARPU

7

8

Notes:
6.

The number of net subscriber additions includes prepaid mobile phones and communication module service subscribers.
Net communication module service subscriber additions for the period totaled 581,500, which included an increase of 207,400 in the third
quarter.

7.

Average Revenue Per User per month (rounded to the nearest ¥10)
ARPU in Mobile Communications= (voice related revenue + data related revenue) / number of active subscribers= voice ARPU + data ARPU

Voice ARPU = voice related revenue (such as voice call charges, basic monthly charges)/ number of active subscribers
Data ARPU = data related revenue (such as packet communication charges)/ number of active subscribers
Number of active subscribers: total of monthly numbers of active subscribers for the relevant period ((subscribers at the beginningof the month + subscribers at the end of the month)/2).

Number of active subscribers is based on SOFTBANK MOBILE’s

cumulative subscribers including prepaid mobile phones, communication modules and devices that do not have voice communication
functionalities.
8.

The three-month period ended December 31, 2011 (from October 1 to December 31, 2011).

9.

Compared to the three-month period ended December 31, 2010 (from October 1 to December 31, 2010)< Overview of Operations >The segment’s net sales increased by ¥160,556 million (11.0%) year on year to ¥1,619,177 million.

The mainfactor behind the increase was increased telecom service revenue resulting from steady growth in the number ofmobile phone subscribers. Another factor was an increase in sales of mobile handsets following a rise in thenumber of handset upgrades due to a sales promotion for iPhone 4S, which was launched in October 2011.
The segment’s operating expenses grew ¥128,564 million (11.2%) year on year to ¥1,272,698 million. The
main contribution to this increase was an increase in cost of sales for mobile handsets and sales commissions inline with a rise in the number of mobile handsets shipped and sold as a result of the abovementioned sales
promotion.

The segment also saw higher depreciation and amortization, mainly relating to the installation of

additional base stations.
Operating income increased by ¥31,992 million (10.2%) year on year to ¥346,478 million.

5

SOFTBANK CORP. CONSOLIDATED FINANCIAL REPORTFor the nine-month period ended December 31, 2011

<Number of Mobile Phone Subscribers>
Net subscriber additions (new subscribers minus cancellations) for the period totaled 2,426,600.

This wasprimarily the result of increased sales of smartphones such as iPhone and AndroidTM 10 handsets, as well as higher
sales of iPad 2, mobile data communications devices, and Mimamori Phone (handset with security buzzer). As aresult, the cumulative number of subscribers11 at the end of the period stood at 27,835,300, raising SOFTBANKMOBILE’s cumulative subscriber share by 1.5 percentage points year on year, to 22.9%.12
Notes:
10. Android is a trademark or a registered trademark of Google Inc.
11. The cumulative number of subscribers includes prepaid mobile phones and communication module service subscribers.

The cumulative

number of communication module service subscribers at the end of the period was 1,890,100.
12. Calculated by the Company based on Telecommunications Carriers Association statistical data.
Calculated from the numbers of subscribers of NTT DOCOMO, INC., KDDI CORPORATION, and SOFTBANK MOBILE Corp.

< Number of Mobile Handsets Sold/ Shipped >The number of mobile handsets sold for the period increased by 1,523,000 year on year to 9,002,000. Of these,
new subscriptions increased by 521,000 year on year to 5,036,000, while handset upgrades increased by 1,001,000
to 3,966,000. Meanwhile handsets shipped for the period increased by 1,184,000 year on year to 8,658,000.
The increases in the number of handsets sold and the number of handsets shipped were mainly the result of
expanded sales and shipments of smartphones, Mimamori Phone, iPad 2, and mobile data communications devices.
In particular, the launch of iPhone 4S encouraged existing customers to upgrade their handsets.

<ARPU>
ARPU for the third quarter (the three-month period ended December 31, 2011) decreased ¥80 year on year to¥4,230. Out of this, voice ARPU13 declined ¥280 year on year to ¥1,700 and data ARPU rose ¥200 year on yearto ¥2,530.
The decline in voice ARPU mainly reflects a dilution due to an increase in devices that do not have voicecommunication functionality (such as iPad, mobile data communications devices and PhotoVision (a digital photoframe with telecommunications functionality)) and a decrease in revenues from incoming calls, 14 which was theresult of decline in access charges between operators in March 2011.

On the other hand, the increase in data

ARPU was mainly the result of the continuing increase in the number of data-intensive smartphone subscribers.
Notes:
13. Calculated including basic monthly charge.
14. Voice call charge received from other operators for voice calls from their network to SoftBank mobile phones as a charge for the services
provided in the SOFTBANK MOBILE service area.

<Churn Rate and Upgrade Rate>
The churn rate15 for the third quarter was 1.11%, which was 0.2 of a percentage point higher year on year.

This

was primarily because of an increase in contract terminations for PhotoVision and mobile data communications
devices.
The upgrade rate15 for the third quarter was 2.36%, which was 0.93 of a percentage point higher year on year.
This was mainly the result of an increase in upgrades to iPhone 4S.
Note:
15. Calculated with prepaid mobile phones and communication module service subscribers included in the number of subscribers, churn, andupgrades, respectively.

6

SOFTBANK CORP. CONSOLIDATED FINANCIAL REPORTFor the nine-month period ended December 31, 2011

< Average Acquisition and Upgrade Cost per Subscriber>
The average acquisition cost per subscriber16 for the third quarter declined ¥12,100 year on year to ¥25,700. Thiswas mainly due to an increased number of handsets sold that have a lower acquisition cost per subscriber among
overall handset sales, along with a revision of the pricing strategy for some mobile handsets.
The average upgrade cost per subscriber17 for the third quarter declined ¥2,900 to ¥25,800 year on year.
Notes:
16. Average commission paid to sales agents per new subscription.
New subscriptions include prepaid mobile phones and communication modules.
17. Average commission paid to sales agents per handset upgrade.

7

SOFTBANK CORP. CONSOLIDATED FINANCIAL REPORTFor the nine-month period ended December 31, 2011(b) Broadband Infrastructure(Millions of yen)

Nine-month Period
Ended
December 31, 2010

Nine-month Period
Ended
December 31, 2011

Net sales

144,485

129,790(14,695)(10.2%)

Operating income

33,52528,305(5,219)(15.6%)

ChangeChange %<Overview of Operations>
The segment’s net sales decreased by ¥14,695 million (10.2%) year on year to ¥129,790 million.

This wasmainly because of an increasing portion of Yahoo! BB hikari with FLET'S,18 which has relatively lower ARPU,
while the total number of broadband lines19 continued to increase.
Operating income decreased by ¥5,219 million (15.6%) year on year to ¥28,305 million.

This was mainly due toa decrease in net sales and an increase in sales promotion expense due to subscriber acquisition of Yahoo! BB
hikari with FLET'S.
The number of installed lines20 of Yahoo! BB ADSL at the end of the period totaled 2,737,000, for a net decrease of
413,000 from the previous fiscal year-end. Net subscriber additions for Yahoo! BB hikari with FLET’S for theperiod totaled 505,000, bringing the cumulative number of contracts at the end of the same period to 1,437,000.
As a result, the number of broadband lines stood at 4,175,000.
Notes:
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. Total of the cumulative number of installed lines for Yahoo! BB ADSL and the cumulative number of contracts for Yahoo! BB hikari with
FLET’S.
20. Number of lines for which connection construction for ADSL line at central office of NTT East or NTT West is complete.

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

Nine-month Period
Ended
December 31, 2010

Nine-month Period
Ended
December 31, 2011

Net sales

263,273

270,057

6,783

2.6%

Operating income

23,88942,846

18,957

79.4%

ChangeChange %<Overview of Operations>
The segment’s net sales increased by ¥6,783 million (2.6%) year on year to ¥270,057 million. Inter-segment
sales increased due to network provision to the Group telecommunication companies such as SOFTBANKMOBILE, and contributed to the overall segment’s revenue growth. On the other hand, net sales to third-parties
decreased, primarily as a result of the continued decrease in revenue from relay connection voice services such as
MYLINE.

8

SOFTBANK CORP. CONSOLIDATED FINANCIAL REPORTFor the nine-month period ended December 31, 2011

Operating income increased by ¥18,957 million (79.4%) to ¥42,846 million.

This was due to the increase in net

sales, combined with a decrease in operating expenses for telecommunications equipment fees at SOFTBANKTELECOM Corp. (hereafter “SOFTBANK TELECOM”) mainly as a result of decline in access charges between
carriers. In addition, an increase in OTOKU Line service equipment for which the lease expenses have been paid
and a decrease in marketing sales commissions as a result of less new OTOKU Line acquisitions contributed to theincrease in operating income.

(d) Internet Culture(Millions of yen)

Nine-month Period
Ended
December 31, 2010

Nine-month Period
Ended
December 31, 2011

Net sales

210,166

215,942

5,776

2.7%

Operating income

110,669

114,982

4,313

3.9%

The segment’s net sales increased by ¥5,776 million (2.7%) year on year to ¥215,942 million.

This was mainly

ChangeChange %<Overview of Operations>due to revenue growth at Yahoo Japan in listing and display advertising, game related services, information listing
services, and Yahoo! Shopping. While the Great East Japan Earthquake had a negative impact on some businessareas at the beginning of the fiscal year, this has improved since the second quarter.

In Yahoo! Shopping, mobile

phone transaction value, in particular via smartphones, expanded substantially.
Operating income increased by ¥4,313 million (3.9%) year on year to ¥114,982 million. This was primarily
the result of a decrease in communications expenses due to connection efficiency improvements in the operating
system for data centers, although sales promotion expenses increased.

9SOFTBANK CORP. CONSOLIDATED FINANCIAL REPORTFor the nine-month period ended December 31, 2011

(Reference 1: Principal Operational Data）(a) Mobile Communications
SoftBank mobile phones
Fiscal Year Ending
March 31, 2012

Fiscal Year Ended March 31, 2011
Q1

Q2

Q3

Q4

Full Year

Q1

Q3

Q2

( Thousands)

Net additions1

696.6

901.0

925.7

1,008.8

3,532.1

730.0

759.7

936.9

744.8

943.5

(Postpaid)

645.3

833.6

865.4

975.3

3,319.6

697.5(Prepaid)
Market share2
among 4 operators (%)
Market share2
among 3 operators (%)

51.3

67.4

60.3

33.5

212.5

32.5

14.9

(6.6)

45.4

53.5

55.8

40.8

48.0

42.7

40.4

-

51.7

60.8

62.7

44.2

53.6

49.1

46.2

42.4

22,573.2

23,474.2

24,399.925,408.7

26,138.7

26,898.4

27,835.3

19.9

20.3

20.8

21.3

21.6

21.8

-

20.3

20.8

21.4

21.8

22.2

22.5

22.9

2,162
1,375
787

2,712
1,562
1,149

2,605
1,577
1,028

2,763
1,770
994

10,242
6,284
3,958

2,550
1,564
987

2,665
1,624
1,040

3,787
1,848
1,938

2,051

2,687

2,736

2,542

10,016

2,493

2,395

3,770

ARPU5

4,290

4,300

4,310

3,940

4,210

4,210

4,310

4,230

(Voice) 6(Data)

2,030
2,250

2,020
2,290

1,980
2,330

1,570
2,370

1,890
2,310

1,780
2,440

1,780
2,520

1,700
2,530

37,20037,50037,80035,40036,90036,20030,80025,70025,90025,30028,70027,00026,70029,00028,60025,800

Churn rate9

1.02

0.96

0.91

1.02

0.98

1.08

1.09

1.11

(3G postpaid)

0.99

0.92

0.86

0.98

0.94

1.03

1.02

1.04

1.18

1.67

1.43

1.33

1.40

1.28

1.31

2.36

(Thousands)

Cumulative subscribers1
Market share2
among 4 operators (%)
Market share2
among 3 operators (%)(Thousands)

Number ofhandsets sold3(New subscriptions)(Handset upgrades)(Thousands)

Number ofhandsets shipped4(Yen per month)(Yen)

Average acquisition cost
per subscriber7(Yen)

Average upgrade cost
per subscriber8(% per month)(% per month)

Upgrade rate910

SOFTBANK CORP. CONSOLIDATED FINANCIAL REPORTFor the nine-month period ended December 31, 2011

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.
4 operators: NTT DOCOMO, INC., KDDI CORPORATION, eAccess Ltd. and SOFTBANK MOBILE Corp.
3 operators: NTT DOCOMO, INC., KDDI CORPORATION, and SOFTBANK MOBILE Corp.
From December 2011, net additions and cumulative subscribers of eAccess Ltd. are no longer disclosed to the Telecommunications
Carriers Association, and therefore, the market share among 4 operators for the third quarter has not been calculated.

3.

Handsets sold: total of new subscriptions and handset upgrades

4.

Handsets shipped: handsets shipped (sold) to agents

5.

Average Revenue Per User per month (rounded to the nearest ¥10)
ARPU in Mobile Communications = (voice related revenue + data related revenue) / number of active subscribers= voice ARPU + data ARPU
Voice ARPU = voice related revenue (such as voice call charges, basic monthly charges)/ number of active subscribers
Data ARPU = data related revenue (such as packet communication charges)/ number of active subscribers
Number of active subscribers: total of monthly numbers of active subscribers for the relevant period ((subscribers at the beginningof the month + subscribers at the end of the month)/2).

Number of active subscribers is based on SOFTBANK MOBILE’s

cumulative subscribers including prepaid mobile phones, communication modules and devices that do not have voice communication
functionalities.
6.

Calculated including basic monthly charge.

7.

Average commission paid to sales agents per new subscription.

8.

Average commission paid to sales agents per handset upgrade.

9.

Calculated with prepaid mobile phones and communication module service subscribers included in the number of subscribers, churn, andNew subscriptions include prepaid mobile phones and communication modules.

upgrades, respectively.

11

SOFTBANK CORP. CONSOLIDATED FINANCIAL REPORTFor the nine-month period ended December 31, 2011

Broadband Infrastructure
Yahoo! BB ADSL
Fiscal Year Ending
March 31, 2012

Fiscal Year Ended March 31, 2011
Q1

Q2

Q3

Q4

3,609

3,457

3,291

3,960

3,950

3,890

3,830

2.46

2.39

2.66

2.65

Full Year

Q1

Q2

Q3

3,009

2,873

2,737

3,710

3,650

3,580

2.56

2.43

2.35

(Thousands)

Installed line10

3,150(Yen per month)

ARPU11 12(% per month)

Churn rate13

2.54

Yahoo! BB hikari with FLET'S
Fiscal Year Ended March 31, 2011
Q1

Q2

Q3

Q4

Full Year

Fiscal Year Ending
March 31, 2012
Q1
Q2
Q3

(Thousands)

Cumulative
contracts14

405

575

783

1,310

1,450

1,500

932

1,109

1,272

1,437

1,620

1,660

1,670

(Yen per month)

ARPU11

1,620

Broadband Lines
Fiscal Year Ending
March 31, 2012

Fiscal Year Ended March 31, 2011
Q1

Q2

Q3

Q4

4,014

4,032

4,074

Full Year

Q1

Q2

Q3

4,118

4,145

4,175

(Thousands)

Total users15

4,082

Notes:
10. Number of lines for which connection construction for ADSL line at central office of NTT East or NTT West is complete.
11. Average Revenue Per User: average revenue per user (rounded to the nearest ¥10)
12. Starting in the first quarter of the fiscal year ending March 2012, the index was changed to “ARPU” with the number of installed lines as
the denominator.

The ARPU data for each quarter of the fiscal year ended March 2011 has therefore been restated to conform with thisnew definition.
13. Starting in the first quarter of the fiscal year ending March 2012 the churn rate is calculated with number of installed lines as thedenominator.

The churn data for each quarter of the fiscal year ended March 2011 has therefore been restated to conform with this new

definition.
14. Number of users for which connection construction for FLET’S HIKARI line at central office of NTT East or NTT West is complete.
15. Total of the number of installed lines of Yahoo! BB ADSL and cumulative contracts of Yahoo! BB hikari with FLET'S.

(b) Fixed-line TelecommunicationsOTOKU Line
Fiscal Year Ending
March 31, 2012

Fiscal Year Ended March 31, 2011
Q1

Q2

Q3

Q4

1,668

1,667

1,662

6,600

6,570

6,610

Full Year

Q1

Q2

Q3

1,669

1,679

1,678

6,650

6,570

6,550

(Thousands)

Lines

1,671

(Yen per month)

ARPU16

6,930

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

12

SOFTBANK CORP. CONSOLIDATED FINANCIAL REPORTFor the nine-month period ended December 31, 2011

(Reference 2: Capital Expenditure and Depreciation)(a) Capital Expenditure (acceptance basis)（Millions of yen）

Fiscal Year Ending
March 31, 2012

Fiscal Year Ended March 31, 2011
Q1

Q2

Q3

Q4

Full Year

Q1

Q2

Q3

MobileCommunications

25,98765,387116,324

143,826

351,525

84,076

98,39993,675

Broadband
Infrastructure

3,319

3,294

5,076

5,160

16,850

5,739

3,861

4,638

Fixed-line
Telecommunications

5,112

6,362

9,095

15,66536,236

6,320

8,281

10,654

Internet Culture

1,906

1,908

2,783

4,114

10,713

3,349

4,609

3,743

Others

1,216

1,559

1,148

1,340

5,265

1,710

5,338

2,041

Consolidated total

37,54278,513

134,428

170,107420,591

101,196

120,490

114,753(b) Depreciation and Amortization(Note) (excluding amortization of goodwill)（Millions of yen）

Fiscal Year Ending
March 31, 2012

Fiscal Year Ended March 31, 2011
Q1

Q2

Q3

Q4

Full Year

Q1

Q2

Q3

37,74539,671

41,18348,029166,630

46,202

48,69149,266

4,211

4,213

4,020

3,863

16,308

3,540

3,452

3,507

9,458

9,827

9,631

11,48540,403

9,188

9,684

9,957

Internet Culture

2,169

2,307

2,412

2,533

9,422

2,291

2,395

2,703

Others

1,441

1,485

1,631

1,554

6,113

1,521

1,592

2,350

Consolidated total

55,02557,50558,88067,466

238,878

62,74465,81667,785

MobileCommunications
Broadband
Infrastructure
Fixed-line
Telecommunications

Note:
From the third quarter of the fiscal year ended March 2011 depreciation and amortization includes loss on disposal of fixed assets included inoperating expenses. Depreciation and amortization for the previous quarters has been reclassified and restated accordingly.

13

SOFTBANK CORP. CONSOLIDATED FINANCIAL REPORTFor the nine-month period ended December 31, 2011(2) Qualitative Information Regarding Consolidated Financial Position
1.

Assets, Liabilities and Equity

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

As of March 31, 2011

As of December 31, 2011

ChangeChange %Total assets

4,655,725

4,498,762(156,962)(3.4%)

Total liabilities

3,776,107

3,177,638(598,468)(15.8%)

Total equity

879,618

1,321,124

441,505

50.2%(a) Current Assets
Current assets at the end of the period totaled ¥1,647,262 million, for a ¥215,354 million (11.6%) decrease fromthe previous fiscal year-end.

The primary components of the change were as follows:

・ Cash and deposits decreased by ¥90,406 million from the previous fiscal year-end.

This was mainly becauseof the repayment of borrowings such as the SBM loan, and an increase in payments for capital expenditure.
Meanwhile, the Company’s subsidiary, SFJ Capital Limited, procured funds by issuing preferred (restricted
voting) securities.
・ Marketable securities decreased by ¥73,706 million from the previous fiscal year-end.

This was mainly due tothe transfer of shares of Yahoo! Inc. held by one of the Company’s U.S. subsidiaries to CITIBANK, N.A., as
described on page 3 (g) Special Income.

(b) Fixed Assets
Fixed assets totaled ¥2,845,359 million at the end of the period, for a ¥53,633 million (1.9%) increase from theprevious fiscal year-end. The primary components of the change were as follows:・ Total property and equipment increased ¥114,616 million from the previous fiscal year-end, primarily on a¥248,922 million increase from new acquisitions of telecommunications equipment.
・ Total intangible assets decreased ¥14,844 million from the previous fiscal year-end.

This was mainly becauseof a ¥46,931 million decrease resulting from regular amortization of the goodwill recorded when the Company
acquired SOFTBANK MOBILE and SOFTBANK TELECOM. On the other hand, software increased by¥34,156 million as a result of new acquisitions of telecommunications equipment.
・ Investments and other assets decreased ¥46,138 million from the previous fiscal year-end.

This was mainly

due to a decline in investment securities of ¥23,171 million related to the early redemption of WBS Class B2
Funding Notes held by the Company associated with the complete repayment of the SBM loan.
Note:Issued by J-WBS Funding K.K. in November 2006 to provide part of the funding for the SBM loan.

The Company acquired these bonds atface value of ¥27,000 million during the fiscal year ended March 2010.

(c) Current Liabilities
Current liabilities at the end of the period totaled ¥1,543,408 million, for a ¥100,999 million (6.1%) decrease fromthe previous fiscal year-end.

The primary components of the change were as follows:・ Accounts payable-other and accrued expenses increased by ¥189,694 million from the previous fiscal year-end.

14

SOFTBANK CORP. CONSOLIDATED FINANCIAL REPORTFor the nine-month period ended December 31, 2011

This was mainly the result of transferring ¥200,000 million from long-term liabilities–other to current liabilities
as an amount scheduled to be paid to Vodafone International Holdings B.V. and Vodafone Overseas Finance
Limited (hereafter “the Vodafone Group”) in April 2012, as part of a transaction made with the Vodafone Groupin December 2010.
・ Short-term borrowings decreased by ¥171,696 million from the previous fiscal year-end.

to the Company repaying its loan of US$1,135 million during the second quarter.
CITIBANK, N.A. through one ofThis was mainly due

This loan was obtained fromthe Company’s U.S. subsidiaries in February 2004. This transaction is

described in detail on page 3 (g) Special Income.

Meanwhile, SOFTBANK MOBILE continued to repay

borrowings procured via securitization of installment sales receivables.
・ The current portion of corporate bonds decreased by ¥33,500 million from the previous fiscal year-end.

This

th

was mainly due to the transfer of the 28 Unsecured Straight Corporate Bond of ¥30,000 million and the 29th
Unsecured Straight Corporate Bond of ¥65,000 million from corporate bonds under long-term liabilities, whilethe 27th Unsecured Straight Corporate Bond of ¥60,000 million, the 25th Unsecured Straight Corporate Bond of¥53,500 million, and SOFTBANK TELECOM’s 2nd series Unsecured Straight Corporate Bond of ¥15,000
million were redeemed.
・ Commercial paper decreased by ¥25,000 million from the previous fiscal year-end, as it was fully redeemed

during the period.

(d) Long-term Liabilities
Long-term liabilities totaled ¥1,634,230 million at the end of the period, for a ¥497,468 million (23.3%) decrease
from the previous fiscal year-end.

The primary components of the change were as follows:・ Long-term borrowings decreased by ¥306,024 million from the previous fiscal year-end.

This was mainly due

to loan repayments of ¥772,577 million made by SOFTBANK MOBILE. On the other hand, the Company’s
long-term borrowings increased by ¥466,100 million, mainly due to refinancing of the SBM loan.
・ Long-term liabilities–Other decreased by ¥202,288 million from the previous fiscal year-end.

This was mainly

due to the transfer of ¥200,000 million to accounts payable-other and accrued expenses for the above-mentioned
payment scheduled for April 2012 as part of a transaction with the Vodafone Group, since the payment datecame to be within one year.
・ Lease obligations increased by ¥73,257 million from the previous fiscal year-end.

This was mainly due to anincrease in new acquisitions of telecommunications equipment via lease transactions.
・ Corporate bonds decreased ¥47,502 million from the previous fiscal year-end.

Transfers were made forcorporate bonds from long-term to current liabilities in the amounts of ¥30,000 million for the 28th Unsecured
Straight Corporate Bond and ¥65,000 million for the 29th Unsecured Straight Corporate Bond, as the redemption
dates came to be within one year.

Moreover, ¥32,400 million of the Subordinated Notes Due 2016 issued by

the Company’s subsidiary, Phoenix JT Limited, was redeemed early and the Company’s Convertible Bonds Due
2014 (balance at the previous fiscal year-end ¥49,992 million) were converted into common stock of theCompany.

On the other hand, the Company issued the 36th Unsecured Straight Corporate Bond of ¥100,000

million and the 37th Unsecured Straight Corporate Bond of ¥30,000 million for a total of ¥130,000 million.

15

SOFTBANK CORP. CONSOLIDATED FINANCIAL REPORTFor the nine-month period ended December 31, 2011(e) Equity
Equity totaled ¥1,321,124 million at the end of the period, for a ¥441,505 million (50.2%) increase from theprevious fiscal year-end.

The equity ratio rose 5.3 percentage points from the previous fiscal year-end to 18.6%.

The primary components of the change were as follows:(Shareholders’ equity)
Shareholders’ equity increased ¥271,595 million from the previous fiscal year-end to ¥894,917 million.
・ At the end of the period, common stock totaled ¥213,797 million and additional paid-in capital was ¥237,202

million.

This result includes the conversion of the Convertible Bonds Due 2014 into common stock of theCompany during the period, which increased common stock by ¥25,022 million and additional paid-in capitalby ¥24,691 million.
・ Retained earnings totaled ¥466,863 million at the end of the period, for a ¥244,586 million increase from theprevious fiscal year-end. This was primarily because net income of ¥250,081 million was recorded, along withpayment of dividends from retained earnings of ¥5,411 million.
・ Treasury stock totaled ¥22,946 million, for a ¥22,705 million increase from the previous fiscal year-end.

This

was mainly due to acquisitions of treasury stock in September and October 2011 in preparation for the exerciseof stock acquisition rights and execution of a flexible capital strategy in response to changes in the businessenvironment.
(Valuation and translation adjustments)
・ Valuation and translation adjustments of ¥59,660 million were recorded as debit at the end of the period, a¥55,591 million decrease from the previous fiscal year-end.

This was mainly due to declines of ¥34,634

million in net unrealized gain on available-for-sale securities and of ¥12,302 million in deferred gain onderivatives under hedge accounting from the previous fiscal year-end.

These declines are mainly a result of

settlement of forward contracts (“collar transaction”) by one of the Company’s U.S. subsidiaries upon maturityof a loan from CITIBANK, N.A. during the second quarter, as described on page 3 (g) Special Income.

The

subsidiary entered into the contract when it obtained the loan.
(Minority interests)
・ Minority interests totaled ¥484,982 million at the end of the period, for a ¥225,320 million increase from theprevious fiscal year-end.

This was mainly due to the issuance of preferred (restricted voting) securities

amounting ¥200,000 million by the Company’s subsidiary SFJ Capital Limited.

16

SOFTBANK CORP. CONSOLIDATED FINANCIAL REPORTFor the nine-month period ended December 31, 2011

2.

Cash Flows

Cash flows during the period were as follows:
Cash and cash equivalents at the end of the period totaled ¥759,782 million, for a ¥87,372 million decrease fromthe previous fiscal year-end.
(Millions of yen)

Nine-month Period
Ended
December 31, 2010

Nine-month Period
Ended
December 31, 2011

ChangeCash flows from operating activities

525,908

507,434(18,474)

Cash flows from investing activities(161,644)(270,692)(109,048)(Reference) Free cash flow

364,264

236,741(127,522)

Cash flows from financing activities(340,716)(322,209)

18,506(a) Cash Flows from Operating Activities
Net cash provided by operating activities totaled ¥507,434 million (compared with ¥525,908 million provided in
the same period of the previous fiscal year). The primary components of the change were as follows:・ Income before income taxes and minority interests totaled ¥518,317 million.
・ The main items added to income before income taxes and minority interests were ¥196,347 million in

depreciation and amortization and ¥46,936 million in amortization of goodwill.
・ The main items subtracted from income before income taxes and minority interests were gain on sale ofmarketable and investment securities, net of ¥83,677 million and dilution gain from changes in equity interest,
net of ¥18,176 million.
・ Payables-trade decreased by ¥17,649 million mainly due to payments made for mobile handsets procured

towards the end of the previous fiscal year at SOFTBANK MOBILE.
・ Income taxes paid were ¥191,105 million.

(b) Cash Flows from Investing Activities
Net cash used in investing activities was ¥270,692 million (compared with ¥161,644 million used in the same
period of the previous fiscal year). The primary components of the change were as follows:
・ Capital expenditures, mainly at telecommunications related businesses, resulted in outlays of ¥357,633 million

for purchase of property and equipment, and intangibles.
・ Proceeds from sale of marketable and investment securities generated ¥80,258 million.

For details on proceedsfrom sale of marketable securities and investment securities, refer to page 30, “3. Consolidated Financial
Statements - (6) Notes (Consolidated Statements of Cash Flows) – 2. Proceeds from sale of marketable andinvestment securities and Repayment of long-term debt”.
・ Proceeds from advanced redemption of debt security generated ¥30,375 million.

redemption of WBS Class B2 Funding Notes held by the Company.
・ Outlays for purchase of marketable and investment securities were ¥26,775 million.

17

This was due to early

SOFTBANK CORP. CONSOLIDATED FINANCIAL REPORTFor the nine-month period ended December 31, 2011

As a result, free cash flow (the combined net cash flows from operating activities and investing activities) for theperiod was a positive ¥236,741 million (compared with a positive ¥364,264 million in the same period of theprevious fiscal year), for a year-on-year decrease of ¥127,522 million.

(c) Cash Flows from Financing Activities
Net cash used in financing activities was ¥322,209 million (compared with ¥340,716 million used in the same
period of the previous fiscal year). The primary components of the change were as follows:(Items increasing cash flows)
・ Newly procured long-term debt provided ¥600,675 million, issuance of preferred securities by a subsidiary

provided ¥200,000 million, sale and lease back of equipment newly acquired provided ¥198,529 million, andissuance of corporate bonds provided ¥129,354 million.
(Items decreasing cash flows)・ Outlays included ¥918,615 million for repayments of long-term debt, ¥163,437 million for redemption of bonds,¥124,148 million for decrease in short-term borrowings, net, ¥111,531 million for the repayment of leaseobligations, ¥25,000 million for decrease in commercial paper, net. In addition, purchase of treasury stock
amounted to ¥22,705 million.

18

SOFTBANK CORP. CONSOLIDATED FINANCIAL REPORTFor the nine-month period ended December 31, 2011

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

Company NameSOFTBANK CORP.

Details
36th Unsecured Straight Corporate Bond
(Fukuoka SoftBank HAWKS Bond)

37th Unsecured Straight Corporate Bond

Bond
redemptions

SOFTBANK CORP.

27th Unsecured Straight Corporate Bond
(Fukuoka SoftBank HAWKS Bond)
25th Unsecured Straight Corporate Bond

SOFTBANK TELECOM

2nd Unsecured Straight Corporate Bond

Phoenix JT Limited

Subordinated Notes Due 2016
(early redemption)
Decrease of ¥25,000 million

Increase or
decrease ofcommercial
paper
Acquisition oftreasury stock

SOFTBANK CORP.

SOFTBANK CORP.

Acquisition of treasury stock in themarketPreferred
securities
issuances
Repayment of
securitization ofreceivables
Increase or
decrease in debt
(excluding
securitization ofreceivables)

SFJ Capital Limited

Issuance of preferred securities

SOFTBANK MOBILE Corp.

Repayment of ¥48,887 million

SOFTBANK CORP.

Increase of ¥439,400 million

SOFTBANK MOBILE Corp.

Decrease of ¥772,577 million

SB Broadband Investments

Decrease of ¥93,370 million

SOFTBANK MOBILE Corp.
etc.

New capital expenditure via leases

Capitalexpenditure byfinancial lease

Summary
Issue date: June 17, 2011
Redemption date: June 17, 2016
Total amount of issue: ¥100,000 million
Interest rate: 1.00%/year
Issue date: June 10, 2011
Redemption date: June 10, 2014
Total amount of issue: ¥30,000 million
Interest rate: 0.65%/year
Redemption date: June 10, 2011
Redeemed amount: ¥60,000 million
Redemption date: June 17, 2011
Redeemed amount: ¥53,500 million
Redemption date: December 7, 2011
Redeemed amount: ¥15,000 million
Redemption date: December 15, 2011
Redeemed amount: ¥32,400 million

Period for acquisition: September 2 to 7,
2011 (execution base)Total cost of acquisition: ¥10,793 million
Period for acquisition: October 3 to 5, 2011
(execution base)Total cost of acquisition: ¥11,899 million
Issue date: September 22, 2011
Total amount of issue: ¥200,000 million
Dividend rate: 2.04%/year
Repayment of funds procured via
securitization of mobile handsets
installment sales receivables
Mainly increase of long-term borrowings
related to refinancing of the funds procured
by SOFTBANK MOBILE Corp. via wholebusiness securitization*1
Repayment of funds raised via the wholebusiness securitization financing scheme
Repayment of borrowings through the saleof Yahoo! Inc. shares*2
Funds newly procured during the period:¥198,529 million*Refer to page 30, “3. Consolidated Financial Statements – (6) Notes (Consolidated Statements of Cash Flows) – 2. Proceeds from sale ofmarketable and investment securities and repayment of long-term debt”.

(3) Qualitative Information Regarding Consolidated Earnings Forecasts
The Group is planning to focus on network expansion and customer acquisition in the Mobile Communications
segment.

The initiatives for achieving these strategies need to be planned and adjusted flexibly according tocircumstances.

Since this involves numerous unconfirmed elements which could impact revenue and profit, it isdifficult to disclose numerical earnings forecasts.

However, revenue and operating income are expected to increase

year on year.
To improve disclosure of information for shareholders and investors, the earnings forecast will be disclosed when
deemed to be reasonable.

19

SOFTBANK CORP. CONSOLIDATED FINANCIAL REPORTFor the nine-month period ended December 31, 2011

2. Notes on the Summary Information(1) Significant Changes in Scope of Consolidation
Changes in Scope of Consolidation of Specified Subsidiaries: (One company)
SFJ Capital Limited newly became a consolidated subsidiary due to the growth of materiality in accordance with the capital increase
through the issuance of the preferred securities on September 22, 2011.

20

SOFTBANK CORP. CONSOLIDATED FINANCIAL REPORTFor the nine-month period ended December 31, 2011

3. Consolidated Financial Statements(1) Consolidated Balance Sheets(Millions of yen)
As ofMarch 31, 2011

As of
December 31, 2011

AmountAmountASSETS
Current assets:
Cash and deposits
Notes and accounts receivable - tradeMarketable securities¥861,657¥771,251

657,774

655,697

78,0994,393

Merchandise and finished products

49,88737,587

Deferred tax assets

90,90760,375

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

162,068

158,559(37,778)(40,602)

1,862,617

1,647,262

Buildings and structures

74,86775,095

Telecommunications equipment

840,839

946,953

Telecommunications service lines

68,856

66,151

Land

22,882

22,908Construction in progress

55,66358,614

Other property and equipment

50,33958,339Total property and equipment

1,113,447

1,228,064

Goodwill

839,238

792,306

Software248,872

283,028

Other intangibles

32,23330,165

1,120,345

1,105,500

Investment securities

340,436

317,264

Deferred tax assets

109,145

89,407

123,360

120,806(15,008)
557,933
2,791,726(15,684)
511,794
2,845,359

1,381

6,140

¥4,655,725¥4,498,762

Fixed assets:
Property and equipment, net:

Intangible assets, net:

Total intangible assets
Investments and other assets:

Other assets
Less:
Allowance for doubtful accounts
Total investments and other assets
Total fixed assets
Deferred charges
Total assets

21

SOFTBANK CORP. CONSOLIDATED FINANCIAL REPORTFor the nine-month period ended December 31, 2011

Consolidated Balance Sheets(Millions of yen)
As ofMarch 31, 2011

As of
December 31, 2011

AmountAmountLIABILITIES AND EQUITYCurrent liabilities:
Accounts payable - trade
Short-term borrowings¥193,644¥175,774

410,950

239,253

Commercial paper

25,000-Current portion of corporate bonds
Accounts payable - otherand accrued expenses

128,500

95,000561,421751,115

Income taxes payable

115,355

74,464Current portion of lease obligations

131,305

141,776

Other current liabilities

78,23066,024

Total current liabilities

1,644,407

1,543,408

Corporate bonds

507,390459,888

Long-term debt

1,030,959

724,935

Deferred tax liabilities

26,582

21,410Liability for retirement benefits

14,41414,308

Allowance for point mileage

41,94732,313

Lease obligations

199,769

273,027

Other liabilities

310,636

108,347

Total long-term liabilities

2,131,699

1,634,230

Total liabilities

3,776,107

3,177,638

Common stock

188,775

213,797

Additional paid-in capital

212,510237,202

Retained earnings

222,277

466,863

Less: Treasury stock(240)(22,946)

Total shareholders’ equity

623,321894,917

Unrealized gain on available-for-sale securities
Deferred gain (loss) on derivatives under hedge
accounting
Foreign currency translation adjustments

34,920286

11,224(1,078)(50,213)(58,868)

Total valuation and translation adjustments(4,068)(59,660)

703

885

Minority interests

259,661484,982

Total equity

879,618

1,321,124¥4,655,725¥4,498,762

Long-term liabilities:

Equity:Stock acquisition rights

Total liabilities and equity

22

SOFTBANK CORP. CONSOLIDATED FINANCIAL REPORTFor the nine-month period ended December 31, 2011

(2) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income
For the nine-month period ended December 31, 2010 and 2011
Consolidated Statements of Income(Millions of yen)

Nine-month period ended
December 31, 2010
April 1, 2010 to
December 31, 2010
AmountNet sales
Cost of sales
Gross Profit
Selling, general and administrative expenses
Operating income
Interest income
Dividend income
Equity in earnings of affiliated companies
Other non-operating income
Non-operating income
Interest expense
Equity in losses of affiliated companies

Nine-month period ended
December 31, 2011
April 1, 2011 to
December 31, 2011
Amount¥2,249,901¥2,398,192

1,027,735

1,100,772

1,222,165

1,297,419

740,006

764,635

482,159

532,783

1,668

1,632

407

1,954

4,818

-

8,149

4,753

15,0448,340

80,61053,271-

3,632

Refinancing related expense

2,296

24,906

Other non-operating expenses
Non-operating expenses

14,37815,37897,285

97,188399,917443,934

Gain on sale of investment securities

4,907

83,687

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

2,349

18,375

-

2,175

4,429

4,185

Special income

11,686

108,422

Valuation loss on investment securities
Unrealized appreciation on valuation of investments andloss on sale of investments at subsidiaries in the U.S.,net
Premium expense on advanced repayment of long-term
debt
Other special losses
Special loss

3,927

9,321

371

-

-

21,875

22,6992,842

26,99734,039384,607518,317

125,137

146,401

Ordinary income

Income before income taxes and minority interests
Income taxes:
Current
Corrections
Deferred

26,450-47,45075,165

Total income taxes

199,039

221,566

185,567

296,751

43,26846,669¥142,299¥250,081

Income before minority interests
Minority interests in net income
Net income

23

SOFTBANK CORP. CONSOLIDATED FINANCIAL REPORTFor the nine-month period ended December 31, 2011

Consolidated Statements of Comprehensive Income(Millions of yen)

Nine-month period ended
December 31, 2010
April 1, 2010 to
December 31, 2010
AmountIncome before minority interests
Other comprehensive loss
Unrealized loss on available-for-sale securities
Deferred loss on derivatives under hedge accounting
Foreign currency translation adjustment
Share of other comprehensive income of affiliatedcompanies accounted for using equity method
Total other comprehensive loss
Comprehensive income

Nine-month period ended
December 31, 2011
April 1, 2011 to
December 31, 2011
Amount185,567

296,751(9,763)(35,949)(2,827)(12,746)(12,850)(3,328)(5,883)(6,602)(31,324)(58,626)

154,243

238,124

Owners of the parent

111,040

194,502

Minority interests

43,203

43,622Comprehensive income attributable to:24

SOFTBANK CORP. CONSOLIDATED FINANCIAL REPORTFor the nine-month period ended December 31, 2011

For the three-month period ended December 31, 2010 and 2011
Consolidated Statements of Income(Millions of yen)Three-month period ended
December 31, 2010
October 1, 2010 to
December 31, 2010
AmountThree-month period ended
December 31, 2011
October 1, 2011 to
December 31, 2011
AmountNet sales
Cost of sales
Gross Profit¥ 784,879¥862,545

362,239429,804

422,640

432,740

Selling, general and administrative expenses

256,002273,179

166,637

159,560

Operating income
Interest income
Equity in earnings of affiliated companies

534

367

5,902

-

Other non-operating income
Non-operating income

3,356

1,391

9,794

1,758

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

25,827

12,522

-

2,410

56

11,300

4,473

5,636

30,356

31,869146,074

129,449

Dilution gain from changes in equity interest
Unrealized appreciation (loss) on valuation of investments
and gain on sale of investments at subsidiaries in the
U.S.,net
Premium on advanced redemption of debt security

913

1,216

374

130

-

4,185

Other special income

4,283

159

5,570

5,691

-

21,875

13,544

3,009

Ordinary income

Special income
Premium expense on advanced repayment of long-term
debt
Other special losses
Special loss

13,54424,884

Income before income taxes and minority interests
Income taxes:
Current
Deferred

138,100

110,256

29,43645,03928,947

17,827

Total income taxes

58,38462,866

79,71647,39014,255

14,560¥ 65,460¥32,829

Income before minority interests
Minority interests in net income
Net income25

SOFTBANK CORP. CONSOLIDATED FINANCIAL REPORTFor the nine-month period ended December 31, 2011

Consolidated Statements of Comprehensive Income(Millions of yen)Three-month period ended
December 31, 2010
October 1, 2010 to
December 31, 2010
AmountIncome before minority interests
Other comprehensive loss
Unrealized gain on available-for-sale securities
Deferred gain (loss) on derivatives under hedge
accounting
Foreign currency translation adjustment
Share of other comprehensive income of affiliatedcompanies accounted for using equity method
Total other comprehensive loss
Comprehensive income

Three-month period ended
December 31, 2011
October 1, 2011 to
December 31, 2011
Amount

79,71647,390

1,614

1,186

(5,954)193(2,971)(142)(2,523)(6,828)(9,835)(5,592)

69,88041,798

Owners of the parent

54,74528,128

Minority interests

15,135

13,669Comprehensive income attributable to:26

SOFTBANK CORP. CONSOLIDATED FINANCIAL REPORTFor the nine-month period ended December 31, 2011

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

Nine-month period ended
December 31, 2010

Nine-month period ended
December 31, 2011

April 1, 2010 to
December 31, 2010

April 1, 2011 to
December 31, 2011

Cash flows from operating activities:
Income before income taxes and minority interests¥384,607¥518,317

Depreciation and amortization

165,557

196,347

Amortization of goodwill

46,98046,936Equity in (earnings) losses of affiliated companies(4,818)3,632

Dilution gain from changes in equity interest, net(2,074)(18,176)

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

3,927

9,321

371

(2,175)Gain on sale of marketable and investment securities, net(4,439)(83,677)

Foreign exchange gain, net(1,604)(12)

Interest and dividend income(2,076)(3,586)

Interest expense

80,61053,271

Adjustments for:

Changes in operating assets, and liabilities
Decrease in receivables - trade147,443

1,482

918

(17,649)(34,391)

43,450781,011

747,484

2,103

3,235

Interest paid

(71,918)(52,179)

Income taxes paid

(185,288)(191,105)

525,908

507,434

Increase (decrease) in payables - trade
Other, net
Sub-totalInterest and dividend received

Net cash provided by operating activities- Continued -27

SOFTBANK CORP. CONSOLIDATED FINANCIAL REPORTFor the nine-month period ended December 31, 2011

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

Nine-month period ended
December 31, 2010

Nine-month period ended
December 31, 2011

April 1, 2010 to
December 31, 2010

April 1, 2011 to
December 31, 2011

Cash flows from investing activities:
Purchase of property and equipment, and intangibles¥(149,043)¥(357,633)

Purchase of marketable and investment securities
Proceeds from sale of marketable and investment securities(39,401)(26,775)

25,12380,258Proceeds from advanced redemption of debt security
Acquisition of interests in subsidiaries newly consolidated,
net of cash acquired
Other, net-

30,375

(701)

(53)

2,378

3,136

(161,644)(270,692)

Increase (decrease) in short-term borrowings, net

90,275(124,148)

Increase (decrease) in commercial paper, net

24,500(25,000)

Net cash used in investing activities
Cash flows from financing activities:

Proceeds from long-term debt

197,900

600,675

Repayment of long-term debt

(348,550)(918,615)

Proceeds from issuance of bonds

179,182

129,354

Redemption of bonds(105,508)(163,437)

1,430

282

-

200,000(12)(22,705)

Cash dividends paid

(5,371)(5,385)

Cash dividends paid to minority shareholders(14,917)(16,899)

Proceeds from sale and lease back of equipment newly acquired

54,667

198,529

Repayment of lease obligations(113,321)(111,531)

Payments for additional entrustment for debt assumption(75,000)-

Payments for repurchase of minority interests and long-term debt

(212,563)-

Other, net(13,428)(63,327)

Net cash used in financing activities(340,716)(322,209)(4,756)(1,238)18,791(86,706)

1,919

68

(64)

(734)

Proceeds from issuance of shares to minority shareholders
Proceeds from issuance of preferred securities by a subsidiary
Purchase of treasury stock

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

687,681

847,155

Cash and cash equivalents, end of the period¥706,489¥759,782

28

SOFTBANK CORP. CONSOLIDATED FINANCIAL REPORTFor the nine-month period ended December 31, 2011(4) Significant Doubt about Going Concern Assumption
There are no applicable items for the nine-month period ended December 31, 2011.

(5) Additional Information
For the nine-month period ended December 31, 2011 (From April 1 to December 31, 2011)
On December 2, 2011, “Act on the Partial Revision of the Income Tax Act for the Establishment of a Taxation System Responding
to Structural Transformation of Economy and Society” (Act No. 114 of 2011) and “Act on Special Measures for Securing Financial
Resources Needed to Implement Measures to Recover From the Great East Japan Earthquake” (Act No. 117 of 2011) were issued.
By these acts, the corporate tax rate will be changed from the fiscal year beginning on and after April 1, 2012. As a consequence,
effective statutory tax rate, which is used to calculate deferred tax assets and liability, will be as follows, depending when thetemporary difference will reverse.
Until March 31, 2012: 40.69%
From April 1, 2012 to March 31, 2015: 38.01%
On and after April 1, 2015: 35.64%
The effect of this change is not material.

(6) Notes(Consolidated Statements of Income)
1. Refinancing related expense
For the nine-month period ended December 31, 2011 (From April 1 to December 31, 2011)
It is primarily ¥23,943 million of procurement expense related to the total amount of ¥ 550.0 billion financing based on the
resolution of the directors’ meeting held on July 21, 2011 and cancellation expense of interest-rate swap to hedge interest rate risks
along with the repayment of SBM loan*.
*¥1,366.0 billion loan to SOFTBANK MOBILE procured in November 2006 by Mizuho Trust & Banking Co., Ltd, the “Tokutei
Kingai Trust Trustee” under the whole business securitization scheme. The SBM loan was associated with the series of financing
transactions for the Company to acquire Vodafone K.K (currently SOFTBANK MOBILE). This loan was paid off on October27, 2011.
2. Gain on sale of investment securities
For the nine-month period ended December 31, 2011 (From April 1 to December 31, 2011)
The gain on sale of investment securities for the current period is primarily attributable to a ¥76,430 million gain on sale of Yahoo!
Inc. shares.
In connection with the Company’s financing of approximately $1,135 million from CITIBANK, N.A. through its U.S subsidiary
in February 2004, certain forward contracts (“collar transaction”) were entered into, which allowed the obligation to be settled atmaturity by delivering Yahoo! Inc. shares held by the Company’s subsidiary. The forward contracts were to effectively hedge
the variability of cash flows associated with the future market price of the underlying securities.
During the nine-month period ended December 31, 2011, the obligation under the forward contracts was settled at maturity byeffectively delivering the shares of Yahoo! Inc. (book basis of $142 million) to CITIBANK, N.A. The cash proceeds received
by the Company’s subsidiary from delivering the shares of Yahoo! Inc. to CITIBANK, N.A. were then remitted to repay the
related obligation. “Gain on sale of investment securities” of ¥76,430 million ($993 million) was recorded as a result of settling
the forward contracts.
As of September 30, 2010, the shares of Yahoo! Inc. were reclassified to “Marketable securities” under current assets from
“Investment securities” under investment and other assets. This was to coincide with the reclassification of the related obligation
under current liabilities, of which the remaining period until maturity was less than one year. Accordingly, the gain on sale fromthis transaction was recorded as “Gain on sale of investment securities.”

29

SOFTBANK CORP. CONSOLIDATED FINANCIAL REPORTFor the nine-month period ended December 31, 2011

3. Unrealized appreciation on valuation of investments and gain (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 on valuation of investments and gain
(loss) on sale of investments at subsidiaries in the U.S., net and gain (loss) on sale of investments, computed based on theacquisition cost, is also included in this account. The unrealized appreciation on valuation of investments and gain (loss) on saleof investments included in unrealized appreciation on valuation of investments and gain (loss) on sale of investments at
subsidiaries in the U.S., net in the consolidated statements of income are as follows:
Nine-month period ended
December 31, 2010
Unrealized appreciation on valuation of investment
at subsidiaries in the U.S.,net
Gain (loss) on sale of investments
at subsidiaries in the U.S.,net
Total

Nine-month period ended
December 31, 2011

124

1,985

(495)

189

(371) million yen

2,175

million yen

4. Premium expense on advanced repayment of long-term debt
For the nine-month period ended December 31, 2011 (From April 1 to December 31, 2011)
As a result of the refinancing of SBM loan, a premium expense occurred for the advanced repayment of the entire loan on October27, 2011.

(Consolidated Statements of Cash Flows)
1. Scope of Purchase of property and equipment, and intangibles in the consolidated statements of cash flows
For the nine-month period ended December 31, 2010 (From April 1 to December 31, 2010) and for the nine-month period ended
December 30, 2011 (From April 1 to December 31, 2011)“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.
2. Proceeds from sale of marketable and investment securities and Repayment of long-term debt
For the nine-month period ended December 31, 2011 (From April 1 to December 31, 2011)
As described in “2. Gain on sale of investment securities under (Consolidated Statements of Income),” the shares of Yahoo! Inc.
held by the Company's U.S. subsidiary were delivered to CITIBANK, N.A. in connection with the settlement of the obligation
under the forward contracts (“collar transaction”). The cash receipts of ¥57,191 million ($743 million) equaled the fair value ofthe shares delivered and were recorded as “Proceeds from sale of marketable and investment securities”. The proceeds received of¥57,191 million were then remitted to repay the obligation and recorded as “Repayment of long-term debt.”
The difference between the obligation balance of $1,135 million at maturity and the $743 million of proceeds from delivering theshares of Yahoo! Inc. that were remitted to CITIBANK, N.A. in full settlement of the obligation was recognized as a realized gainon the forward contracts. Therefore, the balance of the obligation after deduction of the realized gain on the forward contracts,
which was equal to the fair value of Yahoo! Inc. shares, was recorded under “Repayment of long-term debt.”
3. Proceeds from advanced redemption of debt security
For the nine-month period ended December 31, 2011 (From April 1 to December 31, 2011)
In January 2010, the Company acquired corporate bonds issued by J-WBS Funding K.K. to provide part of the funding for the SBM
loan under the whole business securitization scheme associated with the acquisition of Vodafone K.K(currently SOFTBANKMOBILE) and recorded the corporate bonds as “Investment securities” on the consolidated balance sheet. These are proceedsfrom the advanced redemption of the corporate bonds with accompanying the repayment of the entire SBM loan in October 2011.

30

SOFTBANK CORP. CONSOLIDATED FINANCIAL REPORTFor the nine-month period ended December 31, 2011

4. Proceeds from issuance of preferred securities by a subsidiary
For the nine-month period ended December 31, 2011 (From April 1 to December 31, 2011)
They are proceeds from the issuance of preferred securities with limited voting right (preferred securities which have the nature ofa stock prescribed in Financial Instruments and Exchange Act Article 2 (1) (ix), which is a part of securities described in Financial
Instruments and Exchange Act Article 2 (1) (xvii)) to investors through publicly offering in Japan by the Company’s consolidated
subsidiary, SFJ Capital Limited.
5. Proceeds from sale and lease back of equipment newly acquired
For the nine-month period ended December 31, 2010 (From April 1 to December 31, 2010) and for the nine-month period ended
December 31, 2011 (From April 1 to December 31, 2011)
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 under sale and lease back arrangements.
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” under cash flows from investing activities and the cash inflows from the sale of the equipment to lease companies areincluded in “Proceeds from sale and lease back of equipment newly acquired” under cash flows from financing activities.

31

SOFTBANK CORP. CONSOLIDATED FINANCIAL REPORTFor the nine-month period ended December 31, 2011(7) Segment Information
1. Net sales and segment profit or loss of reportable segments for the nine -month period ended December 31, 2010
(Millions of yen)
Reportable segments

Reconciliations to
Other

MobileBroadband

Fixed-line

1

Amounts in consolidated

Total

consolidated statement

Internetof income 2

Subtotalstatement of income 3

Communications

Infrastructure

Telecommunications

Culture¥1,451,042¥139,739¥221,872¥206,934¥2,019,590¥230,311¥2,249,901¥-¥2,249,901

7,578

4,746

41,4003,231

56,95624,87881,835(81,835)-

Total

1,458,620

144,485

263,273

210,166

2,076,547

255,189

2,331,737(81,835)

2,249,901

Segment profit¥314,486¥33,525¥23,889¥110,669¥482,571¥8,048¥490,619¥(8,459)¥482,159

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 ¥(8,459) million represents elimination of intersegment
transactions and expenses of the corporate division of the Company, which totaled ¥758 million and ¥(9,218) million, respectively.
3. Segment profit is adjusted with operating income in the consolidated statements of income.
2. Net sales and segment profit or loss of reportable segments for the nine-month period ended December 31, 2011
(Millions of yen)
Reportable segments

Reconciliations to
Other 1

MobileBroadband

Fixed-line

Amounts in consolidated

Total

consolidated statement

Internetof income 2

Subtotalstatement of income 3

Communications

Infrastructure

Telecommunications

Culture¥1,613,652¥118,404¥214,623¥213,050¥2,159,730¥238,461¥2,398,192¥-¥2,398,192

5,525

11,38555,433

2,892

75,23726,314

101,551(101,551)

-

Total

1,619,177

129,790

270,057

215,9422,234,967

264,775

2,499,743(101,551)

2,398,192

Segment profit¥346,478¥28,305¥42,846¥114,982¥532,613¥9,481¥542,095¥(9,311)¥532,783

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 ¥(9,311) million represent elimination of intersegment
transactions and expenses of the corporate division of the Company, which totaled ¥819 million and ¥(10,131) million, respectively.
3. Segment profit is adjusted with operating income in the consolidated statements of income.

(8) Significant Changes in Shareholders’ Equity
There are no applicable items for the nine-month period ended December 31, 2011.

32