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 4 of this report.

SOFTBANK CORP.
CONSOLIDATED FINANCIAL REPORTFor the fiscal year ended March 31, 2010
Tokyo, April 27, 2010

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

Net sales

Operating income

Ordinary income

Net income

Amount%Amount%Amount%Amount%Fiscal year ended
March 31, 2010

¥2,763,406

3.4¥465,871

29.7¥340,997

51.1¥96,716

124.0

Fiscal year ended
March 31, 2009

¥2,673,035(3.7)¥359,121

10.7¥225,661(12.7)¥43,172(60.3)Net income
per share－basic(yen)

Net income
per share－diluted(yen)

Fiscal year ended
March 31, 2010¥89.39Fiscal year ended
March 31, 2009¥39.95

Note: Equity in losses of affiliated companies:
Fiscal year ended March 31, 2010:
Fiscal year ended March 31, 2009:

Return on Equity(%)

Ordinary income /Total assets (%)

Operating income /Net sales (%)¥86.39

22.9

7.7

16.9

¥38.64

11.4

5.1

13.4

¥(3,616) million¥(13,759) million(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 March 31, 2010

¥4,462,875¥963,971

10.5¥434.74

As of March 31, 2009

¥4,386,672¥824,798

8.5¥346.11

Note: Shareholders’equity (consolidated)
As of March 31, 2010:
As of March 31, 2009:¥470,531 million¥374,094 million(3) Cash Flows(Millions of yen; amounts less than one million yen are omitted.)

Operating activities

Investing activities

Financing activities

Cash and cash
equivalents
at the end of the year

Fiscal year ended
March 31, 2010

¥668,050¥(277,162)¥(159,563)¥687,681

Fiscal year ended
March 31, 2009

¥447,857¥(266,295)¥(210,348)¥457,644

12. Dividends

Dividends per shareFirst quarter Second quarter Third quarter Fiscal year
end
end
end
end

(Record date)(yen)

FY 2009
FY2010FY 2011(Forecasted)
3.

(yen)

(yen)

Total

(yen)

Total
Amount ofdividends(Annual)Payout ratio(Consolidated)

Dividends
on equity(Consolidated)(yen)(millions of yen)

%

%

2,702
5,411

6.3
5.6

0.7
1.3

-

0.00
0.00

-

2.50
5.00

2.50
5.00

-

0.00

-

5.00

5.00

-

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

Operating income
First-half financial year
Full financial year

¥ -

- (%)

¥500,000

7.3 (%)

4. Others(1) Significant Changes in Scope of Consolidation (Changes in Scope of Consolidation of Specified Subsidiaries):No(2) Changes in accounting principles, procedures, disclosure methods, etc., used in the presentation of the consolidated financial
statements (Changes described in “(6) Basis of Presentation of Consolidated Financial Statements”)[1] Changes due to revisions in accounting standards: No[2] Changes other than those in [1]: No(3) Number of shares issued (Common stock)[1] Number of shares issued (including treasury stock):
As of March 31, 2010:
As of March 31, 2009:

1,082,503,878 shares
1,081,023,978 shares[2] Number of treasury stock:
As of March 31, 2010:
As of March 31, 2009:

174,775 shares
169,204 shares

2[For Reference]
FINANCIAL HIGHLIGHTS (Non-Consolidated)1.

Non-Consolidated Results of Operations(Millions of yen; amounts less than one million yen are omitted.)

Net sales

2.

Operating income

Ordinary loss

Net income

Amount%Amount%Amount%Amount%Fiscal year ended
March 31, 2010

¥12,900

4.5¥2,322(24.2)¥(20,581)-¥33,095-

Fiscal year ended
March 31, 2009¥12,343(3.7)¥3,064(36.9)¥(19,789)-¥2,785 (57.0)

Net income
per share－basic(yen)

Net income
per share－diluted(yen)

Fiscal year ended
March 31, 2010¥30.59¥ 30.13

Fiscal year ended
March 31, 2009¥2.58

¥ 2.58

Non-Consolidated Financial Condition(Millions of yen; amounts less than one million yen are omitted.)

Total assets

Net Assets

Equity ratio (%)

Shareholders' equity
per share (yen)As of March 31, 2010

¥1,491,232¥435,211

29.2¥402.11

As of March 31, 2009

¥1,349,878¥401,665

29.8¥371.62

Note: Shareholders’equity (non-consolidated)
As of March 31, 2010:
As of March 31, 2009:¥ 435,211million¥401,665 million* 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.
Forecasts on the consolidated operating income for interim period ending September 30, 2010 are not disclosed.

3

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the fiscal year ended March 31, 2010

Qualitative Information / Financial Statements
1.

Results of Operations(1) Analysis of Consolidated Results of Operations
1.

Consolidated Results of Operations<Overview of results for the fiscal year ended March 31, 2010 (April 1, 2009 to March 31, 2010)>
Reflecting the steady performance of its Mobile Communications business, the Group achieved a ¥90,370 million(3.4%) increase in consolidated net sales compared with the fiscal year ended March 31, 2009 (April 1, 2008 to
March 31, 2009, hereafter “the previous fiscal year”), to ¥2,763,406 million, with a ¥106,749 million (29.7%)
increase in operating income to ¥465,871 million for the fiscal year ended March 31, 2010 (hereafter “this fiscalyear”). The Group earned record operating income1 in each of the five consecutive years since the fiscal year ended
March 31, 2006.

This growth in consolidated revenue and profit was driven by earnings growth at the Mobile

Communications segment from an increase in the number of mobile subscribers. Ordinary income grew ¥115,335
million (51.1%) to ¥340,997 million, which was also a record level, and net income grew ¥53,543 million (124.0%)
to ¥96,716 million.
Notes:
Definition of terms: as used in this consolidated financial report for the fiscal year ended March 31, 2010, references to “theCompany,” “the Group” and “the SOFTBANK Group” are to SOFTBANK CORP. and its consolidated subsidiaries except as thecontext otherwise requires or indicates.
1. Since the Company applied consolidated accounting in the fiscal year ended March 31, 1995.

The main factors affecting earnings for this fiscal year were as follows:(a) Net Sales
Net sales totaled ¥2,763,406 million, for a ¥90,370 million (3.4%) year-on-year increase.

This was mainly due toa ¥138,555 million growth in sales at the Mobile Communications segment resulting from an increase in thenumber of mobile phone subscribers and increased handset shipments2. On the other hand, net sales declined by¥31,771 million at the Broadband Infrastructure segment due to a decline in the number of charged ADSL lines.
Note:
2. Handsets shipped: the number of handsets shipped (sold) to agents.

(b) Cost of Sales
Cost of sales declined ¥39,331 million (2.9%) year-on-year to ¥1,326,571 million, mainly from a decrease intelecommunications equipment usage fees paid by the Mobile Communications and the Fixed-line
Telecommunications segments and lower depreciation and amortization expenses in the Broadband Infrastructure
segment.

This decline was partially offset as the cost of sales for mobile handsets increased from the previous

fiscal year in line with the increase in shipped handsets.

4

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the fiscal year ended March 31, 2010(c) Selling, General and Administrative Expenses
Selling, general and administrative expenses increased ¥22,951 million (2.4%) year-on-year to ¥970,963 million.
This was because of an increase in sales commissions corresponding to growth in the number of mobile handsets
sold3. However, the Group was able to lower its expenses related to doubtful accounts (bad debt loss on doubtful
accounts + provision for allowance for doubtful accounts) as its Mobile Communications segment benefited fromthe implementation of stricter credit screening.
Note:
3. Handsets sold: the number of handsets sold to customers (new and upgrade purchases combined).

(d) Operating Income
As a result, operating income totaled ¥465,871 million, for a ¥106,749 million (29.7%) increase.

(e) Non-operating Income / Expenses, net
The Group recorded a net non-operating loss of ¥124,873 million, an improvement of ¥8,585 million (comparedwith a ¥133,459 million loss in the previous fiscal year). The main factors were a ¥1,192 million reduction ininterest payments to ¥111,152 million due to a decrease in interest-bearing debt, and a ¥10,143 million
improvement in equity in losses under the equity method, to ¥3,616 million, from improved performances ataffiliates’ investment funds.

(f) Ordinary Income
Ordinary income therefore totaled ¥340,997 million, marking a ¥115,335 million (51.1%) year-on-year increase.

(g) Special Income
Special income totaled ¥6,655 million, consisting primarily of a ¥4,758 million gain from the sale of investment
securities.

(h) Special Loss
Special loss was ¥58,403 million.

The main component was a ¥48,786 million loss on the retirement of noncurrent assets. This was mainly due to SOFTBANK MOBILE Corp. (hereafter “SOFTBANK MOBILE”), thecore company of the Group’s Mobile Communications segment, recording a ¥23,011 million loss on the retirementof non current assets associated with the termination of 2G mobile phone services, and a ¥22,493 million loss on
the retirement of non current assets associated with the review and optimization of its existing 3G wirelesstelecommunication network equipment.
For further details, refer to page 43 “4. Consolidated Financial Statements - Notes Consolidated Statements ofIncome - 3. Loss on retirement of non current assets.”

5SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the fiscal year ended March 31, 2010(i) Income Taxes and Minority Interests in Net Income
Provisions for income taxes, current and deferred, were ¥117,876 million and ¥26,683 million, respectively, and¥47,973 million was recorded as minority interests in net income.

(j) Net Income
As a result of the above, net income totaled ¥96,716 million, for a ¥53,543 million (124.0%) year-on-year increase.

The Group is strengthening its cash-flow-oriented management, and aims to reduce its ¥1,939,520 million of net
interest-bearing debt4 as of the end of March 2009 by half over three years (by the end of March 2012) and to zero
over six years (by the end of March 2015). To achieve this, the Group plans to generate an aggregate total of atleast ¥1 trillion in free cash flow5 over the three years from fiscal 2009 (period from April 1, 2009 to March 31,2012). As a result of the strong performance at the Mobile Communications segment, free cash flow totaling¥390,888 was generated during this fiscal year, and net interest-bearing debt was reduced by ¥438,446 million to¥1,501,074 million.
Notes:
4. Net interest-bearing debt: interest-bearing debt minus cash position.
Interest-bearing debt: short-term borrowings + commercial paper + current portion of corporate bonds + corporate bonds +long-term borrowings. Lease obligations are excluded.
This also excludes the corporate bonds (WBS Class B2 Funding Notes, issued by J-WBS Funding K.K.) with a face valueof ¥27,000 million acquired by the Company during this fiscal year that were issued under the whole businesssecuritization scheme associated with the acquisition of Vodafone K.K.
Cash position: cash and cash deposits + marketable securities recorded as current assets.
5. Free cash flow: cash flows from operating activities + cash flows from investing activities.

6

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the fiscal year ended March 31, 2010

2.

Results by Business Segment* Principal operational data is shown on pages 12-14 under “(Reference 1: Principal Operational Data).”(a) Mobile Communications(Millions of yen)

Net sales
Operating income

Fiscal year ended
March 31, 2009
1,562,890
171,389

Fiscal year ended
March 31, 2010
1,701,446
260,931

YoY
138,555
89,542

YoY
(%)
8.9
52.2

・ 1,243,700 net subscriber additions in this fiscal year
・ ARPU6

for this fiscal year was ¥4,0707

・ Data ARPU for the fourth quarter (January 1

stto March 31st 2010) was ¥2,140 (a ¥320 increase comparedto the same period of the previous fiscal year), surpassing the sum of basic monthly charge and voice
ARPU for the first time

<Analysis of Results>
Primary factors affecting segment earnings were as follows:(Net sales)・ Telecom service revenue grew on a steady increase in the number of mobile subscribers at the core company

SOFTBANK MOBILE.
・ Sales of mobile handsets grew on an increase in the number of handsets shipped.

(Operating expenses)
・ Sales commissions grew on the increase in handsets sold, combined with a higher sales commission per user for

new and upgrade handset purchases resulting from changes in the model mix of handsets sold.
・ The cost of sales for mobile handsets grew on the increase in handsets shipped.
・ Expenses related to doubtful accounts (bad debt loss on doubtful accounts and provision for doubtful accounts)

declined significantly, as a result of continued stricter customer credit screening for new subscribers.
Note:
6. Average Revenue Per User (rounded to the nearest 10).
Revenue and number of mobile phone subscribers include prepaid mobile phones and communication module service
subscribers.
7. ARPU for the previous fiscal year and this fiscal year before rounding was ¥4,065 and 4,068, respectively.

7

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the fiscal year ended March 31, 2010

<Number of Mobile Phone Subscribers>
Net subscriber additions (new subscribers minus cancellations) at SOFTBANK MOBILE for this fiscal year
totaled 1,243,7008, on strong sales of the iPhoneTM 9 as a result of the “iPhone for everybody” campaign10, and acontribution from solid sales of “PhotoVision” - a digital picture frame with telecommunications functionality.
As a result, the cumulative subscribers as of this fiscal year-end stood at 21,876,6008, increasing SOFTBANKMOBILE’s cumulative subscriber share at the end of this fiscal year by 0.3 of a percentage point year-on-year, to19.5%11.
Notes:
8.

The number of net subscriber additions and the number of cumulative subscribers for SOFTBANK MOBILE include
prepaid mobile phones and communication module service subscribers.
Net subscriber additions for communication modules for the year totaled 481,300, and the total number ofcommunication module service subscribers as of March 31, 2010 was 537,500.
9. iPhone is a trademark of Apple Inc.
The “iPhone” trademark is used under license from Aiphone K.K.
10. A campaign that ran from February 2009 through January 2010, and reduced both the customer’s actual outlay purchaseand the maximum monthly charge for the packet flat-rate data service.
11. Calculated by the Company based on Telecommunications Carriers Association statistical data.

<ARPU>
ARPU for this fiscal year was ¥4,0707. The sum of basic monthly charge and voice ARPU declined ¥270
year-on-year to ¥2,050, mainly from revised access charges between carriers and a decline in voicecommunication. At the same time, data ARPU rose ¥280 year-on-year to ¥2,020.

This was mainly the result of

an increase in 3G subscribers, especially in data-intensive iPhoneTM users, combined with subscribers’ increased
data use as a result of the expansion in mobile content.
ARPU for the fourth quarter was ¥3,890. The sum of basic monthly charge and voice ARPU was ¥1,750. On
the other hand, data ARPU amounted to ¥2,140, surpassing the sum of basic monthly charge and voice ARPU for
the first time on a quarterly basis.

<Churn Rate and Upgrade Rate>
The churn rate12 for this fiscal year was 1.37%, which was 0.37 of a percentage point higher year-on-year. In
addition to higher churn associated with the termination of the 2G service at the end of this fiscal year, the numberof customers completing their installment handset payments increased, and some of these customers churned.
The upgrade rate12 for this fiscal year was 1.71%, which was roughly flat compared with the previous fiscal year’s
1.71%.
Note:
12. Includes prepaid mobile phones and communication module service subscribers.

<Average Customer Acquisition Commission>
The average customer acquisition commission for this fiscal year was ¥40,500, a ¥1,400 increase year-on-year.
This was mainly a reflection of aggressive sales promotion activities, including the “iPhone for everybody”
campaign.

8

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the fiscal year ended March 31, 2010(b) Broadband Infrastructure(Millions of yen)
Fiscal year ended
March 31, 2009
Net sales
Operating income

Fiscal year ended
March 31, 2010
203,428
48,779235,199
47,253

YoY(31,771)
1,526

YoY
(%)
(13.5)
3.2<Overview of Operations>Operating income grew while net sales declined year-on-year. The trend of lower net sales continued mainly
because of a decline in the number of charged lines at the ADSL business of the core company SOFTBANK BB
Corp. (hereafter “SOFTBANK BB”), but there were also reductions in sales-related expenses at the ADSL
business and reduced depreciation expenses due to an impairment write-down on dedicated assets for the FTTH
infrastructural business which was incurred at the end of the previous fiscal year.
SOFTBANK BB began offering Yahoo! BB Hikari with FLET'S13 nationwide from July 2009. The number ofcontracts for this service totaled 237,000 as of the end of this fiscal year, and the number of broadband service
users14 including installed ADSL lines stood at 4,006,000.
Notes:
13. A broadband connection service that combines the Internet connection service Yahoo! BB and the FLET’S HIKARI
fiber-optic connection provided by NIPPON TELEGRAPH AND TELEPHONE EAST CORPORATION (“NTT East”)
and NIPPON TELEGRAPH AND TELEPHONE WEST CORPORATION (“NTT West”). FLET’S and FLET’S
HIKARI are registered trademarks of NTT East and NTT West.
14. Number of lines for which connection construction for ADSL line at central office of NTT East or NTT West is complete.

(c) Fixed-line Telecommunications(Millions of yen)
Fiscal year ended
March 31, 2009
Net sales
Operating income

Fiscal year ended
March 31, 2010
348,692
22,990363,632
18,968

YoY(14,939)
4,022

YoY
(%)
(4.1)
21.2

<Overview of Operations>
Net sales for the segment declined year-on-year.

This was mainly the result of SOFTBANK IDC Solutions

Corp.’s15 net sales, which were previously included in this segment, being included in the Internet Culture
segment from this fiscal year. Net sales from the OTOKU Line, direct connection fixed-line voice service at corecompany SOFTBANK TELECOM Corp. (hereafter “SOFTBANK TELECOM”) remained solid, while thedecline in its revenue from relay connection voice services including MYLINE and international telephone service
continued.
Operating income rose year-on-year, primarily on an increase in the number of lines for high-margin services likeOTOKU Line.
Note:
15. SOFTBANK IDC Solutions Corp. was included in the Fixed-line Telecommunications segment until the previous fiscal
year. As a result of its merger with Yahoo Japan Corporation on March 30, 2009, its operating results have been
included in the Internet Culture segment from this fiscal year.

9

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the fiscal year ended March 31, 2010(d) Internet Culture(Millions of yen)
Fiscal year ended
March 31, 2009
Net sales
Operating income

Fiscal year ended
March 31, 2010
270,891
135,152

254,238
125,098

YoY
(%)

YoY
16,653
10,054

6.6
8.0<Overview of Operations>
Both net sales and operating income rose from the previous fiscal year.

The sales growth at core company

Yahoo Japan Corporation (hereafter “Yahoo Japan”) was the result of the combination of the merger withSOFTBANK IDC Solutions Corp., and growth in revenue assisted by the increase in membership fees for Yahoo!
Premium members and the upward revision in store royalties in Yahoo! Auctions. The growth advertisingbusiness sales, on a recovery in advertising placements, also contributed to the revenue growth.
In addition to sales growth at Yahoo Japan, operating income for the segment grew from the previous fiscal year
on reductions in expenses for items including outsourcing and rent, as a result of stepped-up efforts to increase
operational efficiency and reduce unnecessary costs at Yahoo Japan.

(e)e-Commerce(Millions of yen)
Fiscal year ended
March 31, 2009

Net sales
Operating income

Fiscal year ended
March 31, 2010
249,343
5,793

258,184
4,636

YoY(8,840)
1,156

YoY
(%)
(3.4)
25.0

<Overview of Operations>
Net sales for the segment declined year-on-year. This was mainly due to lower corporate sales at the Commerce& Service Division of core company SOFTBANK BB, reflecting the sluggish economy.
On the other hand, operating income rose year-on-year. This was mainly due to the solid trend in services
directed at retail customers, such as SoftBank SELECTION16, in the Commerce & Service Division of
SOFTBANK BB, and enhanced contribution of the relatively high-margin businesses Carview Corporation and
Vector Inc., to the earnings results.
Note:
16. A brand of mobile phone accessories and PC software.

10

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the fiscal year ended March 31, 2010(f) Others(Millions of yen)

88,22686,255(1,971)

YoY
(%)
(2.2)

(194)

1,564

1,758

-

Fiscal year ended
March 31, 2009
Net sales
Operating income(loss)

3.

Analysis by Geographical Segment

(a)

Japan

Fiscal year ended
March 31, 2010

YoY

Net sales rose ¥97,477 million (3.7%) year-on-year to ¥2,759,955 million, and operating income grew ¥111,127
million (30.3%) to ¥477,803 million.

(b)

North America

Net sales declined ¥85 million (8.0%) year-on-year to ¥981 million. An operating loss of ¥908 million wasrecorded (compared with ¥2,299 million in operating income in the previous fiscal year).

(c)

Others

Net sales declined ¥4,840 million (37.7%) year-on-year to ¥8,013 million. The operating loss came to ¥624
million (compared with a ¥676 million operating loss in the previous fiscal year).

11

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the fiscal year ended March 31, 2010

(Reference 1: Principal Operational Data）(a)

Mobile Communications

SoftBank mobile phones
Fiscal Year Ended March 2009
Q1

Q2

Q3

Q4

Fiscal Year Ended March 2010
Full Year

Q1

Q2

Q3

Q4

Full Year(Thousands)

Net additions1

525.5

521.4

366.6

633.1

2,046.7

323.3

360.7

350.3

209.4

1,243.7(Postpaid)

590

571

398

670

2,228

359

395

383

507

1,645

(Prepaid)

(64)

(49)

(31)

(37)

(182)

(36)

(34)

(33)

(297)

(401)

Market share2(%)
Cumulative
subscribers1

56.9

44.0

37.0

38.1

43.0

32.3

31.5

35.6

13.4

26.5

20,632.9 20,956.2

21,316.9

21,667.2

21,876.6(3G)(2G)
Market share(%)

19,111.7 19,633.2 19,999.8
15,113

16,321

17,24918,654

19,455

20,23820,88521,876.6

3,999

3,313

2,751

1,979

1,501

1,079

782

-

18.4

18.7

18.9

19.2

19.3

19.4

19.6

19.5

2

(Yen per month)
ARPU3(Basic monthly
charge +voice)

4,180

4,170

4,090

3,830

4,070

4,030

4,150

4,200

3,890

4,070

2,530

2,460

2,300

2,020

2,320

2,150

2,160

2,150

1,750

2,050

(Data)

1,650

1,710

1,790

1,820

1,740

1,880

1,990

2,060

2,140

2,020
(Yen)

Averageacquisition
cost persubscriber4

35,60035,50038,30045,30039,10050,10035,90037,40040,20040,500(% per month)
Churn rate5

0.98

0.98

0.91

1.13

1.00

1.05

1.24

1.16

2.01

1.37

6

(3G only )

0.72

0.76

0.69

0.90

0.77

0.87

1.07

0.99

1.28

1.06

Upgrade rate5

1.27

1.91

1.67

1.98

1.71

1.73

1.81

1.53

1.78

1.71

Notes:
1. Includes the number of prepaid mobile phones and communication module service subscribers.
2. Calculated by the Company based on Telecommunications Carriers Association statistical data.
3. Average Revenue Per User (rounded to the nearest 10).
Revenue and number of mobile phone subscribers include prepaid mobile phones and communication modules.
4. Commissions (average) paid to sales agents per new subscription.
Includes prepaid mobile phones and communication modules.
5. Includes prepaid mobile phones and communication modules.
6. Excludes prepaid mobile phones.

12

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the fiscal year ended March 31, 2010(b)

Broadband Infrastructure

Yahoo! BB ADSL

(Thousands)
Fiscal Year Ended March 2009
Q1

Q2

Q3

Installed lines7

4,653

4,551

4,427

Charged lines8

4,127

4,057

4,022

ARPU9

4,283

4,279

4,278

Q4

Fiscal Year Ended March 2010
Q1

Q2

Q3

4,299

4,158

4,040

3,908

3,769

3,907

3,769

3,657

3,533

3,389
(Yen per month)

4,259

4,255

4,245

4,213
(% per month)

Full Year

4,262

Q4

Full Year

Churn rate10
2.25
1.92
1.92
2.23
2.08
2.12
1.80
1.96
2.20
2.02
Notes:
7. Number of lines for which connection construction for ADSL line at central office of NTT East or NTT West is complete.
8. Number of installed lines excluding customers whose basic monthly charge is free under campaigns or other promotional
initiatives.
9. Average Revenue Per User: average revenue per charged line based on user’s payment.
10. Average ratio of customer lines with a history of payment, for which a cancellation application has been filed during therelevant period.

(c)Fixed-line TelecommunicationsOTOKU Line

(Thousands)
Fiscal Year Ended March 2009
Q1

Q2

Q3

Lines

1,443

1,498

1,544

ARPU11

6,149

6,247

6,246

Q4

Fiscal Year Ended March 2010
Full Year

1,608

6,504

Q1

Q2

Q3

Q4

1,631

1,652

1,657

6,388

6,284

6,445

Full Year

1,669(Yen per month)
6,825

Note:
11. Average Revenue Per User(d)Internet Culture(Millions)Fiscal Year Ended March 2009

Fiscal Year Ended March 2010
Q1

Q2

Q3

Q4

46,18746,44546,37842,77946,882

205

229

189

197

209

23

23

Q1

Q2

Q3

Q4

43,98843,433

41,111

176

173

190

Full Year

Full Year

Yahoo! JAPAN
Total monthly
page views12
Uniquebrowsers13

Yahoo! Auctions
Averagenumber of total
listed items14
15
16
18
19
20
20
Notes:
12. Number of accesses to Yahoo! JAPAN Group websites during the last month of each quarter.
13. Number of browsers accessing a Yahoo! JAPAN service during the last month of each quarter.
14. Daily average number of items posted during the last month of each quarter.

13

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the fiscal year ended March 31, 2010

(Reference 2: Capital Expenditure and Depreciation)(a)Capital Expenditure (acceptance basis)(Millions of yen)
Fiscal Year Ended March 2010

Fiscal Year Ended March 2009
Q1

Q2

Q3

Q4

Full Year

Q1

Q2

Q3

Q4

Full Year37,49338,75652,90970,018199,177

32,40839,14847,921

65,291

184,770

4,761

3,010

3,112

3,705

14,589

1,608

1,597

2,058

4,137

9,401

5,100

8,196

9,598

6,694

29,589

3,710

3,939

3,436

6,893

17,979Internet Culture

2,740

3,097

2,196

1,853

9,887

1,101

1,271

1,457

2,347

6,178

e-Commerce

152

324

303

508

1,288

187

226

243

218

876

Others

1,333

637

1,017

1,574

4,563

1,348

675

464

1,220

3,708

Consolidated total

51,57854,022

69,13784,355

259,094

40,36446,85855,58280,109222,915

Segment
MobileCommunications
Broadband
Infrastructure
Fixed-line
Telecommunications(b)

Depreciation (excluding amortization of goodwill)(Millions of yen)
Fiscal Year Ended March 2010

Fiscal Year Ended March 2009
Q1

Q2

Q3

Q4

Full Year

Q1

Q2

Q3

Q4

Full Year

38,67939,60240,91842,316

161,517

42,77343,41844,69645,610176,498

5,655

5,380

5,386

5,552

21,974

4,440

4,347

4,121

4,216

17,126

9,215

9,205

9,167

9,178

36,766

8,982

8,837

8,669

8,803

35,292

Internet Culture

2,355

2,593

2,888

3,005

10,843

2,385

2,459

2,511

2,582

9,939

e-Commerce

276

265

283

296

1,122

284

299

312

362

1,259

Others

816

1,021

1,023

927

3,788

943

905

1,002

976

3,827

Consolidated total

56,99958,06859,66861,277

236,01359,80960,26661,31462,553

243,944

Segment
MobileCommunications
Broadband
Infrastructure
Fixed-line
Telecommunications

14

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the fiscal year ended March 31, 20104.

Earnings Forecasts

The Group is forecasting consolidated operating income of ¥500,000 million for this fiscal year ending March 31,
2011, which represents a ¥34,128 million (7.3%) increase from the actual results of this fiscal year.
Consolidated net sales are subject to rapid changes in the Group’s main markets, the Internet andtelecommunications industry.

There is therefore a possibility that new sales methods will be introduced in the

future in response to changes in the market situation, making it difficult to publicly disclose a forecast for
consolidated net sales.
Forecasts for consolidated ordinary income and consolidated net income are also difficult to publicly disclose
because the performance of the Company’s various holdings of investment securities and investments via funds issubject to changes in the market environment, making equity in earnings under the equity method and valuation
gain and loss on investment securities difficult to project.
In this market environment, it is difficult to make forecasts, and because the Group is managed with an emphasis on
full-year results, interim forecasts are not disclosed.

15

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the fiscal year ended March 31, 2010

(2) Analysis of Financial Position
1.

Assets, Liabilities and Equity

Assets, liabilities, and equity at the end of this fiscal year were as follows:(Millions of yen)
As of March 31, 2009

As of March 31, 2010

(a)

YoY

YoY (%)

Total assets

4,462,875

4,386,672

76,203

1.7

Total liabilities

3,498,903

3,561,873(62,970)(1.8)

Total equity

963,971824,798

139,173

16.9

Current Assets
Current assets at the end of this fiscal year totaled ¥1,694,440 million, for a ¥174,127 million (11.5%) increase
from the previous fiscal year-end.

The primary components of the change were as follows:

・ Cash and deposits increased by ¥232,100 million from the previous fiscal year-end.

Mainly as the result of

operating activities, there was an increase at Yahoo Japan of ¥110,476 million and an increase at SOFTBANKMOBILE of ¥93,533 million, while it repaid ¥198,150 million of its SBM loan1.

The other main reasons for the

movement in cash and deposits during this fiscal year were the issuance of four unsecured straight corporate
bonds2 during this fiscal year, which increased cash and deposits by ¥185,000 million, and a ¥36,500 million
decrease in outstanding borrowings at the Company.

There was also a decrease of ¥45,000 million through astredemption on SOFTBANK TELECOM’s 1 series of Unsecured Straight Corporate Bonds.
・ Notes and accounts receivable-trade decreased ¥41,534 million.

This was mainly due to a decline in accounts

receivable at the SOFTBANK MOBILE on progress in collecting installment sales receivables.
Note:
1. The acquisition funds for the acquisition of Vodafone K.K. were refinanced in November 2006 via a whole businesssecuritization program.
2. The 27th, 28th, 29th and 30th Unsecured Straight Bonds. Details on page 20. (Reference) Major Financing Activities.

(b) Fixed Assets
Fixed assets totaled ¥2,766,483 million at the end of this fiscal year, for a ¥98,552 million (3.4%) decrease from theprevious fiscal year-end. The primary components of the change were as follows:・ Total property and equipment decreased ¥50,243 million from the previous fiscal year-end.

This was mainly

because of the depreciation of telecommunications equipment at the telecommunications-related businesses andthe retirement of certain pieces of telecommunications equipment at the Mobile Communications segment.
・ Total intangible assets decreased ¥69,722 million from the previous fiscal year-end.

This was because of adecrease in goodwill of ¥55,962 million caused mainly by the regular amortization at SOFTBANK MOBILE andSOFTBANK TELECOM, and from the amortization of software.

16

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the fiscal year ended March 31, 2010(c) Current Liabilities
Current liabilities at the end of this fiscal year totaled ¥1,378,878 million, for a ¥29,295 million (2.2%) increase
from the previous fiscal year-end.

The primary components of the change were as follows:

・ Short-term borrowings decreased by ¥137,571 million from the previous fiscal year-end.

This was mainly

because a portion of short-term borrowings were refinanced as long-term borrowings or corporate bonds, which
reduced the outstanding amount of short-term borrowings in this fiscal year by ¥92,800 million.
・ Accounts payable-other and accrued expenses increased by ¥99,237 million.

This was mainly because along-term accounts payable of ¥75,000 million at SOFTBANK MOBILE, relating to the additional entrustment
for debt assumption of bonds3, was transferred from long-term liabilities as it became payable within one year.
・ Income taxes payable increased ¥79,120 million, mainly because of the occurrence of income taxes underconsolidated tax return at BB Mobile Corp.4 due to the full utilization of loss carryforwards.
Notes:
3. Refer to page 38.
4. BB Mobile Corp., SOFTBANK MOBILE and its subsidiaries, all of which are subsidiaries of the Company, adopt theconsolidation taxation system.

(d) Long-term Liabilities
Long-term liabilities totaled ¥2,120,024 million at the end of this fiscal year, for a ¥92,265 million (4.2%) decrease
from the previous fiscal year-end.

The primary components of the change were as follows:・ Corporate bonds outstanding increased by ¥123,957 million from the end of the previous fiscal year.

Theissuance of four unsecured straight corporate bonds during this fiscal year added ¥185,000 million, while thetransfer of the 22nd and 24th Unsecured Straight Corporate Bonds to current liabilities reduced this amount by¥54,400 million.
・ Long-term borrowings decreased by ¥154,706 million.

This is because SOFTBANK MOBILE repaid ¥198,150

million of the SBM loan, while part of the borrowings under the Company’s credit line facility was refinanced as
long-term liabilities at the time of contract renewal, resulting in an increase of ¥56,300 million.
・ Other liabilities decreased by ¥59,252 million, as ¥75,000 million of other long-term accounts payable at

SOFTBANK MOBILE became payable within one year and were therefore transferred to current liabilities.
(Refer to (c) Current Liabilities Accounts payable-other and accrued expenses)(e) Equity
Equity totaled ¥963,971 million at the end of this fiscal year, for a ¥139,173 million (16.9%) increase from theprevious fiscal year-end.

Retained earnings increased ¥94,341 million, totaling ¥43,071 million as of the end of

this fiscal year. As a result of profit recorded mainly at Yahoo Japan minority interests came to ¥492,963 million,
an increase of ¥42,548 million.

17

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the fiscal year ended March 31, 2010

2.

Cash Flows

Cash flow activities during this fiscal year were as follows.
Cash and cash equivalents at the end of this fiscal year totaled ¥687,681 million, for a ¥230,037 million increase fromthe previous fiscal year-end.
(Millions of yen)
Fiscal year ended

Fiscal year ended

March 31, 2009

March 31, 2010

Difference
Cash flows from operating activities

447,857

668,050

220,192

Cash flows from investing activities(266,295)(277,162)(10,867)(Reference) Free cash flow

181,562

390,888

209,325

Cash flows from financing activities(210,348)(159,563)

50,785(a) Cash Flows from Operating Activities
Net cash provided by operating activities totaled ¥668,050 million (compared with ¥447,857 million provided in
the previous fiscal year).
Income before income taxes and minority interests totaled ¥289,249 million, while non-cash items of ¥243,944
million in depreciation and amortization, ¥61,070 million in amortization of goodwill, and loss on retirement of
non current assets of ¥48,786 million were recorded as positive.

Receivables-trade including the collection of

installment sales receivables at SOFTBANK MOBILE decreased by ¥59,637 million.

(b) Cash Flows from Investing Activities
Net cash used in investing activities was ¥277,162 million (compared with ¥266,295 million used in the previous
fiscal year).
Capital expenditures, mainly at telecommunications-related businesses, resulted in ¥223,818 million in outlays forproperty and equipment and intangibles. Purchases of marketable and investment securities resulted in ¥56,686
million in cash outlays. This was mainly related to the acquisition of corporate bonds (face value of ¥27,000
million) held by the Company that were issued by J-WBS Funding K.K. under the whole business securitization
scheme associated with the acquisition of Vodafone K.K.

As a result, free cash flow (the combined net cash flows from operating activities and investing activities) for theyear was a positive ¥390,888 million (compared with a positive ¥181,562 million in the previous fiscal year), for asignificant increase of ¥209,325 million.

18

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the fiscal year ended March 31, 2010(c) Cash Flows from Financing Activities
Net cash used in financing activities was ¥159,563 million (compared with ¥210,348 million used in the previous
fiscal year).
Repayments of long-term borrowings totaled ¥516,051 million, the change in short-term borrowings, net was adecrease of ¥112,910 million, outlays for the repayment of lease obligations came to ¥103,052 million, and ¥70,675
million was used for the redemption of corporate bonds. At the same time, long-term borrowings raised ¥337,929
million, corporate bond issues generated ¥183,433 million, and ¥135,941 million was recorded as proceeds fromthe sale and lease back of equipment newly acquired.

(d) Trends in Cash Flow Related Indicators
A summary of trends in cash flow related indicators is presented below.
Fiscal year ended

Fiscal year ended

Fiscal year ended

March 31, 2008

March 31, 2009

March 31, 2010

Equity ratio

8.4 %

8.5 %

10.5%

Equity ratio (Market cap.)

42.8 %

30.9 %

55.9%

Debt repayment period

4.0 years

3.5 years

2.7 years

Interest coverage ratio

5.4

6.0

7.0

Notes:
1.

2.
3.
4.

5.

The above indicators are calculated using the following formulas based on consolidated figures.
Equity ratio: shareholders’ equity divided by total assets.
Equity ratio (market cap.): market capitalization divided by total assets.
Debt repayment period: interest-bearing debt divided by EBITDA.
Interest coverage ratio: EBITDA divided by interest expenses.
EBITDA: operating income (loss) + depreciation and amortization (including amortization of goodwill), and loss on
disposal of fixed assets included in operating expenses.
Market capitalization is calculated based on the number of shares outstanding, net of treasury stock.
Interest-bearing debt: short-term borrowings + commercial paper + current portion of corporate bonds + corporate bonds +long-term borrowings. Lease obligations are excluded.
This also excludes the corporate bonds (WBS Class B2 Funding Notes, issued by J-WBS Funding K.K.) with a face valueof ¥27,000 million acquired by the Company during this fiscal year that were issued under the whole businesssecuritization scheme associated with the acquisition of Vodafone K.K.

Interest expense is the corresponding figure on the Consolidated Statements of Income for the fiscal year.

A summary of cash flow related indicators excluding the Mobile Communications Segment is shown below.
Fiscal year ended

Fiscal year ended

Fiscal year ended

March 31, 2008

March 31, 2009

March 31, 2010

Debt repayment period

3.6 years

3.1 years

3.0 years

Interest coverage ratio

7.7

10.2

9.8

19

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the fiscal year ended March 31, 2010

[Reference]
Major Financing Activities
The major financing activities in this fiscal year were as follows:
Item
Issue bonds

Company NameSOFTBANK CORP.

Details

Summary

Issue of the 27th Unsecured
Straight Corporate Bond
(Fukuoka SoftBank
HAWKS Bond)

Issue date: June 11, 2009
Redemption date: June 10, 2011
Procured amount: ¥60,000 million
Interest rate: 5.10%/year
Use: redemption of bonds and repaymentof borrowings
Issue date: July 24, 2009
Redemption date: July 24, 2012
Procured amount: ¥30,000 million
Interest rate: 4.72%/year
Use: redemption of bonds and repaymentof borrowings
Issue date: Sept. 18, 2009
Redemption date: Sept. 18, 2012
Procured amount: ¥65,000 million
Interest rate: 4.52%/year
Use: redemption of bonds and repaymentof borrowings
Issue date: Mar. 11, 2010
Redemption date: Mar. 11, 2015
Procured amount: ¥30,000 million
Interest rate: 3.35%/year
Use: scheduled to be used for redemptionof bonds due by Sept. 2010
Redemption date: Dec. 7, 2009
Redeemed amount: ¥45,000 million
Redemption date: Jan. 29, 2010
Redeemed amount: ¥19,000 million
Procurement date: June 30, 2009
Redemption method:monthly pass-through repayment
Use: capital expenditure and repaymentof funds raised via the whole businesssecuritization financing scheme
Procurement date: Sept. 30, 2009
Redemption method:monthly pass-through repayment
Use: capital expenditure and repaymentof funds raised via the whole businesssecuritization financing scheme
Procurement date: Dec. 29, 2009
Redemption method:monthly pass-through repayment
Use: capital expenditure and repaymentof funds raised via the whole businesssecuritization financing scheme
Procurement date: Mar. 30, 2010
Redemption method:monthly pass-through repayment
Use: capital expenditure and repaymentof funds raised via the whole businesssecuritization financing scheme
Repayment of funds procured throughsecuritization of mobile phone
installment sales receivables

Issue of the 28th Unsecured
Straight Corporate Bond

Issue of the 29th Unsecured
Straight Corporate Bond
(Fukuoka SoftBank
HAWKS Bond)

Issue of the 30th Unsecured
Straight Corporate Bond

Bond
redemption

SOFTBANK TELECOM Corp.
SOFTBANK CORP.

Securitizationof receivables

SOFTBANK MOBILE Corp.

1st Series of Unsecured Straight
Bond
19th Series of Unsecured
Straight Bond
Procurement of funds totaling¥70,247 million accompanying
securitization of mobile phone
installment sales receivables(recorded as borrowings)
Procurement of funds totaling¥49,956 million accompanying
securitization of mobile phone
installment sales receivables(recorded as borrowings)
Procurement of funds totaling¥60,081 million accompanying
securitization of mobile phone
installment sales receivables(recorded as borrowings)
Procurement of funds totaling¥56,121million accompanying
securitization of mobile phone
installment sales receivables(recorded as borrowings)

Repayment of
securitization ofreceivables
Increaseordecrease in debt
(excluding
securitization ofreceivables)
Capitalexpenditure byfinancial lease

SOFTBANK MOBILE Corp.

Decrease ¥238,517 million.

SOFTBANK CORP.

Decrease ¥36,500million

SOFTBANK MOBILE Corp.

Decrease ¥198,150 million

SOFTBANK TELECOM Corp.

Decrease ¥20,522 million

Yahoo Japan Corporation

Decrease ¥20,000 million

SOFTBANK MOBILE Corp. etc.

Capital expenditure mainly at
the Mobile Communications
business by utilizing lease

20

Repayment of funds raised via the wholebusiness securitization financing scheme

Funds procured during the during the
fiscal year ended Mar. 31, 2010 fiscal
year: ¥135,941 million.

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the fiscal year ended March 31, 2010

3.

Fundamental Policy for Distribution of Profit, and Dividends for Current and Following Year

The Company strives to increase returns to shareholders by raising corporate value, and has a fundamental policyof returning appropriate amounts of profit to shareholders and other stakeholders.

The Company’s policy

regarding dividends to shareholders is to balance the strengthening of the operating base by reducing
interest-bearing debt while maintaining a stable dividend over the mid- to long-term.
The Group is strengthening its cash-flow-oriented management, and aims to reduce its ¥1,939,520 million of net
interest-bearing debt as of the end of March 2009 by half over three years (by the end of March 2012) and to zero
over six years (by the end of March 2015). To achieve this, the Group plans to generate an aggregate total of atleast ¥1 trillion in free cash flow over the three years from fiscal 2009 (period from April 1, 2009 to March 31,2012). Solid progress toward achieving these goals was made during the fiscal year, with the generation of¥390,888 million of free cash flow, the majority of which was used to repay debt and net interest-bearing debt was
reduced by ¥438,446 million to ¥1,501,074 million.

The Company therefore intends to pay a dividend for thisyear of ¥5 per share, double the dividend of last year.
The dividend for the next fiscal year is scheduled to be the same as this year at ¥5 per share.

21

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the fiscal year ended March 31, 2010

2.

The SOFTBANK GroupAs of March 31, 2010, the Group was comprised of the Company (pure holding company) and the following ninebusiness segments.

The number of consolidated subsidiaries and equity method companies in each business segment

were as follows.

Consolidated
subsidiaries

Equity method
non-consolidated
subsidiaries andaffiliates

Mobile Communications

6

2

Broadband Infrastructure

6

1

Fixed-line Telecommunications

3-

Internet Culture

17

11

e-Commerce

7

4

Others

70

46

109

64

Business segments

Total

Main business of segment and name of business
Provision of mobile communication services and sale ofmobile phones accompanying the services etc.
(Core company: SOFTBANK MOBILE Corp.)
Provision of ADSL and fiber-optic high-speed Internet
connection service, IP telephony service, and provision ofcontent etc. (Core company: SOFTBANK BB Corp. (Note) )Provision of fixed-line telecommunications etc.
(Core companies: SOFTBANK TELECOM Corp. (Note))
Internet-based advertising operations, portal business andauction business etc.
(Core company: Yahoo Japan Corporation (Note))
Distribution of PC software and hardware including PCs
and peripherals, enterprise solutions, and diversified
e-commerce businesses, including business transaction
platforms (B2B) and consumer-related e-commerce (B2C)
etc.
(Core companies: SOFTBANK BB Corp. (Note), 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.)

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

［Listed Companies］
The Company’s five following subsidiaries were listed on domestic stock exchanges as of March 31, 2010:
Company nameYahoo Japan Corporation

Listed exchangeTokyo Stock Exchange 1st section
Jasdaq Securities Exchange

SOFTBANK TECHNOLOGY CORP.

Tokyo Stock Exchange 1st section

Vector Inc.

Osaka Securities Exchange Hercules

ITmedia Inc.

Tokyo Stock Exchange Mothers

Carview Corporation

Tokyo Stock Exchange Mothers

22

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the fiscal year ended March 31, 2010

[Segment Diagram]
The diagram of the Group’s segments is as follows:

Customers
Provision of mobile
communication services, mobile
phones, etc.

Provision of ADSL,
fiber-optic high-speed Internet
connection service, IP
telephony service, etc.
Broadband Infrastructure

Mobile Communications

Internet advertising, portal
business, Internet auction
business, etc.

Provision of fixed-line
telecommunications

Internet Culture

Fixed-line
SOFTBANK CORP.
(Pure holding company)

Overseas Funds

e-Commerce
Distribution of PC software & peripherals, e-commercebusiness, etc.
Technology Services

Media & Marketing

Publication business, web content business, etc.

System solution business, etc.
OthersFukuoka SOFTBANKHAWKS related business etc.

Customers
Technology Services, Media & Marketing, Overseas Funds, and Other
businesses are included in the “Others” segment.

23

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the fiscal year ended March 31, 2010

3.

Management Policies(1) Fundamental Management Policies
Since its establishment, the SOFTBANK Group has operated under the fundamental management policy of“Endeavoring to benefit society and the economy and to maximize corporate value by fostering the sharing of
wisdom and knowledge gained through the IT revolution.” The Group operates a range of businesses, with the aimof creating a society where people can mutually access a variety of information anytime, anywhere, and with anyone
via the Internet.
As a corporate group based on Internet-related businesses, the Group aims to be the global No. 1 corporate group asa “lifestyle company” that provides services, content and infrastructure that enriches and brings enjoyment topeople’s lives.

(2) Target Management Indices
In addition to net sales and operating income for each of the internal management segments, the Group focuses on
the actual amounts and rates of change in the management indices, including ordinary income, net income, cash flow
and EBITDA1. In the telecommunications-related businesses the Group also focuses on the number of subscribers
and market share, and indices that show user trends like churn rate and ARPU2.
The Group is strengthening its cash-flow-oriented management, and aims to reduce its ¥1,939,520 million of net
interest-bearing debt3 as of the end of March 2009 by half over three years (by the end of March 2012) and to zero
over six years (by the end of March 2015).

To achieve this, the Group aims to generate an aggregate total of at least¥1 trillion in free cash flow4 over three years from fiscal 2009 (period from April 1, 2009 to March 31, 2012).
Notes:
1. EBITDA: operating income/loss + depreciation + amortization of goodwill + loss from disposal of fixed assets included inoperating expenses.
2. Average Revenue Per User (revenue and number of mobile phone subscribers include prepaid mobile phones andcommunication modules).
3. Net interest-bearing debt: interest-bearing debt minus cash position.
Interest-bearing debt: short-term borrowings + commercial paper + current portion of corporate bonds + corporate bonds +long-term debt. Lease obligations are excluded.
This also excludes the corporate bonds (WBS Class B2 Funding Notes, issued by J-WBS Funding K.K.) with a face valueof ¥27,000 million acquired by the Company during this fiscal year that were issued under the whole business securitization
scheme associated with the acquisition of Vodafone K.K.
Cash position: cash and cash deposits + marketable securities recorded as current assets.
4. Free cash flow: cash flows from operating activities + cash flows from investing activities.

(3) Mid- to Long-Term Strategies
As a “lifestyle company” in the mobile Internet age, the Group has established a distinctive business model with theaim of maintaining sustainable growth in earnings and free cash flow across the Group.

This model combines

stable, long-term revenue from the infrastructure business, steadily increasing returns from the portal business, and awide variety of revenue streams from the content business.
Over the mid- to long-term, the Group aims to create new markets and increase subscriber numbers mainly in the
Mobile Communications segment, by promoting the use of smartphones such as iPhoneTM 5 and AndroidTM 6 handsets
and devices with telecommunications functionality, like “PhotoVision,” while also increasing operating cash flow
through growth in data telecommunications revenue by providing a broad range of mobile content.

24

While

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the fiscal year ended March 31, 2010

enhancing capital expenditure in order to increase customer satisfaction on the SoftBank mobile phones, the Groupwill also optimize its investment cash flow through continued carefully selected investments. As a result of these
efforts, the Group aims to continuously generate free cash flow to reduce net interest-bearing debt to zero by the endof March 2015, as noted above.
In addition, the Group operates its businesses with the aim of being the “No. 1 Internet Company in Asia” and the“No. 1 Mobile Internet Company” as its long-term strategy.

In Asia, where the Internet is increasingly taking root,

the Group is placing particular emphasis on China. In addition to growth in the business bases of the companies ofGroup affiliate Alibaba Group Holding Limited (hereafter “Alibaba Group Holding”), Oak Pacific Interactive wasmade an affiliate from this fiscal year, and the customer bases of Oak Pacific Interactive’s “renren.com,” one ofChina’s largest SNS7 sites, and SNS game site “Kaixin.com,” are showing steady growth. Pursuing synergies withthese two affiliates, the Group will strengthen its business development throughout Asia. In the area of mobile
Internet, the “Joint Innovation Lab (JIL B.V.),” which the Group jointly established with three of the world’s major
mobile operators8 representing a combined customer base of roughly one billion9, began offering a platform for
MOBILE WIDGET10 development and is pursuing new opportunities for business and earnings growth.
Notes:
5. Apple and the Apple logo are registered trademarks of Apple Inc. in the U.S. and other countries.
iPhone is a trademark of Apple Inc.
The “iPhone” trademark is used under license from Aiphone K.K.
6. Android is a trademark of Google Inc.
7. Social Network Service: a network for social communication on the Internet.
8. Vodafone Group Plc of the U.K., China Mobile Limited, and Cellco Partnership (Verizon Wireless) of the U.S.
9. Calculated by the Company based on the March 2010 disclosed materials by each company.
10. An application on the mobile handset screen that allows for one-touch access to desired information.

(4) Important Management Issues for the Company
1.

Initiatives to reduce net interest-bearing debt

The Group recognizes the importance of reducing its net interest-bearing debt and will strive to reduce netinterest-bearing debt to zero over six years by the end of March 2015.
As of March 31, 2010, the Group’s interest-bearing debt stood at ¥2,195,470 million, and net interest-bearing debt
was ¥1,501,074 million.

The Group generated free cash flow of ¥390,888 million during the year, marking an

increase of ¥209,325 million year-on-year. The majority of this free cash flow was used to repay interest-bearing
debt and, as a result, interest-bearing debt outstanding was reduced by ¥204,921 million and net interest-bearing debt
by ¥438,446 million from the end of the previous fiscal year.
The majority of interest-bearing debt represents a procurement made through a whole business securitization
associated with the acquisition of Vodafone K.K., and the amount of these borrowings repaid during this fiscal year
was ¥198,150 million, bringing the outstanding amount as of this fiscal year-end to ¥986,702 million. Goingforward the Group will strive to further strengthen its financial position by giving priority to allocating the generated
free cash flow to the repayment of interest-bearing debt.

25

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the fiscal year ended March 31, 2010

2.

Initiatives in the Mobile Communications segment

Immediately following its entry into the mobile communications market, the Group identified four key initiatives –“network enhancement,” “handset lineup enrichment,” “mobile content enhancement,” and “enhancement of sales
structure & branding” – and has worked to expand the customer base and further increase the name recognition of
the “SoftBank” brand. Going forward, the Group will continue to address these important issues to develop
businesses that contribute to Group-wide growth.
Of these above initiatives, “network enhancement” is considered the most important challenge, and on March 28,
2010, SOFTBANK MOBILE announced the “SoftBank Network Enhancement Initiative” to further improve its
mobile phone network. This initiative seeks to make data telecommunications easier for the Group’s customers touse by increasing the number of base stations to further expand its coverage areas, and providing micro mini-basestations (femtocells) and Wi-Fi routers free of charge to improve signals indoors.
In terms of “mobile content enhancement,” the Group will continuously develop new services and enrich attractive
content including videos for customers to enjoy mobile Internet. With regard to “handset lineup enrichment,” theGroup will work to increase data telecommunications revenue by emphasizing sales of smartphones including
iPhoneTM and AndroidTM handsets, which are tailored for Internet use.

3.

Pursuing Group synergies

As a corporate group, the Group considers it important to differentiate itself from competitors by pursuingGroup-wide synergies.
The SOFTBANK Group’s telecommunications-related businesses – SOFTBANK MOBILE, SOFTBANK BB and
SOFTBANK TELECOM – have been providing FMC11 services such as White Call 24 which combines SoftBank
mobile phones with its fixed-line ADSL services and White Office which combines SoftBank mobile phones andfixed-line phone services as a corporate service. Going forward, these three companies will continue to provide
innovative services that utilize their synergies, cross-selling on their mutual sales channels, pursue increased
management efficiency such as cost reductions etc.
In addition, through further enhanced cultivation and expansion of content and services the Group will pursue
synergies with its infrastructure and portal business in order to achieve revenue and profit growth as a Group.
Further synergies throughout the Group are also being pursued between Japan and China such as the establishmentof the joint venture Alibaba.com Japan Co., Ltd. with Alibaba Group Holding in China.
Note:
11. Fixed Mobile Convergence services: telecommunications services that integrate the functions of mobile communications andfixed-line communications.

26

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the fiscal year ended March 31, 2010

4. Consolidated Financial Statements(1) Consolidated Balance Sheets(Millions of yen)
As ofMarch 31, 2009

As ofMarch 31, 2010

AmountAmountASSETS
Current assets:
Cash and deposits
Notes and accounts receivable - tradeMarketable securities¥457,953¥690,053

858,084

816,550

2,917

4,342

Merchandise and finished products

42,32037,030

Deferred tax assets

93,021

74,290

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

114,874

106,733(48,858)(34,559)

1,520,313

1,694,440

Buildings and structures

71,577

68,182

Telecommunications equipment

738,967

706,283

Telecommunications service lines

79,637

72,983

Land

22,576

22,401

Construction in progress

37,477

34,634

Other property and equipment

50,71046,218

Total property and equipment

1,000,946

950,703

Goodwill

956,730

900,768

Software226,131208,915

Other intangibles

39,24542,702

1,222,108

1,152,386

320,102

370,027

158,228

152,654

200,749

164,950(37,100)
641,980
2,865,036(24,238)
663,394
2,766,483

1,322

1,951

¥4,386,672¥4,462,875

Fixed assets:
Property and equipment, net:

Intangible assets, net:

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

27

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the fiscal year ended March 31, 2010

Consolidated Balance Sheets(Millions of yen)
As ofMarch 31, 2009

As ofMarch 31, 2010

AmountAmountLIABILITIES AND EQUITYCurrent liabilities:
Accounts payable - trade
Short-term borrowings¥160,339¥158,942

575,532

437,960

64,00054,400352,171

451,408

Income taxes payable

21,363

100,483

Current portion of lease obligations

88,241

109,768

Other current liabilities

87,93565,914

Total current liabilities

1,349,583

1,378,878

Corporate bonds

324,566

448,523

Long-term debt

1,436,292

1,281,586

Deferred tax liabilities

28,79530,482

Liability for retirement benefits

16,076

15,557

Allowance for point mileage

41,81647,215

Lease obligations

233,314

224,484

Other liabilities

131,428

72,175

Total long-term liabilities

2,212,290

2,120,024

Total liabilities

3,561,873

3,498,903

Common stock

187,681

188,750

Additional paid-in capital

211,999

213,068

Retained earnings (accumulated deficit)(51,269)

43,071

(214)

(225)

Total shareholders’ equity

348,197444,665

Unrealized gain on available-for-sale securities

31,334

43,864

Deferred gain on derivatives under hedge accounting

25,117

14,528Foreign currency translation adjustments(30,554)(32,525)

Total valuation and translation adjustments

25,89725,866289

476

450,414492,963

Current portion of corporate bonds
Accounts payable - otherand accrued expenses

Long-term liabilities:

Equity:Less: Treasury stock

Stock acquisition rights
Minority interests
Total equity
Total liabilities and equity

28

824,798

963,971¥4,386,672¥4,462,875

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the fiscal year ended March 31, 2010

(2) Consolidated Statements of Income(Millions of yen)

Net sales
Cost of sales
Gross Profit

Fiscal year ended
March 31, 2009

Fiscal year ended
March 31, 2010

April 1, 2008 to
March 31, 2009

April 1, 2009 to
March 31, 2010

AmountAmount¥2,673,035¥2,763,406

1,365,903

1,326,571

1,307,132

1,436,834

948,011

970,963359,121465,871

Interest income
Foreign exchange gain, net
Contribution for construction

1,399

1,024

1,884

1,707

3,423

1,305

Other non-operating income
Non-operating income

6,309

5,280

Selling, general and administrative expenses
Operating income

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

13,016

9,318

112,345

111,152

13,7593,616

20,37019,423

146,475

134,192

225,661

340,997

Gain on sale of investment securities

3,454

4,758

Dilution gain from changes in equity interest

2,483

1,407

Gain on liquidation of a subsidiary

2,972

-

Other special income

2,301

489

11,212

6,655

Valuation loss on investment securities
Unrealized appreciation (loss) on valuation of
investments and loss on sale of investments at
subsidiaries in the U.S., net
Loss on retirement of non current assets

11,504

5,167

5,316

303

3,029

48,786

Impairment loss

29,478

1,406

Loss on additional entrustment for debt assumption

75,000-

Other special losses

5,207

2,738

129,535

58,403

107,338

289,249

Current

39,390117,876

DeferredOrdinary income

Special income

Special loss
Income before income taxes and minority interests
Income taxes:(19,674)

26,683

Total income taxes

19,715

144,559

Minority interests in net income

44,45047,973¥43,172¥96,716

Net income

29

30

Balance at March 31, 2009

258
¥211,999

-

258

-

Items other than changes in shareholders’equity, net

-

-

-

-

¥187,681-

Purchase of treasury stock

Total changes in the year--

Net income-

Adjustments of accumulated deficit due tochange in scope of the consolidation

258

-

-

258

¥211,740

Additional
paid-in
capital¥(51,269)

40,478--43,1727(2,701)-(3)¥(91,744)¥(214)

(8)

-

(8)

-

-

-

-

-

¥(206)

Accumulated
Treasury stock
deficit

Shareholders’ equity¥187,422

Commonstock

Cash dividends

Exercise of warrants

Changes of items during the year

Balance at April 1, 2008
Increase in accumulated deficit due to adoptionof a new accounting standard for accounting
policies at foreign subsidiaries

Fiscal year from April 1, 2008 to March 31, 2009:(3)Consolidated Statements of Changes in Equity¥348,197

40,987-(8)

43,1727(2,701)517(3)¥307,213

Total

Valuation and translation adjustments¥31,334(49,580)(49,580)

-

-

-

-

-

-

¥80,914¥ 25,117

36,94036,940

-

-

-

-

-

-

¥ (11,823)¥(30,554)(37,992)(37,992)

-

-

-

-

-

-

¥7,437

Unrealized gain Deferred gain (loss) Foreign currency(loss) on
on derivatives
translation
available-forunder hedge
adjustments
sale securities
accounting¥25,897(50,632)(50,632)

-

-

-

-

-

-

¥76,529

Total

¥289

169

169

-

-

-

-

-

-

¥120

Stock acquisitionrights¥450,414(14,447)(14,447)

-

-

-

-

-

-

¥464,862

Minority
interests¥824,798(23,923)(64,910)(8)

43,1727(2,701)517(3)¥848,725

Total equity(Millions of yen)

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the fiscal year ended March 31, 2010

31

-

-

Purchase of treasury stock

Items other than changes in shareholders’equity, net

Balance at March 31, 2010

¥188,750

1,069

-

-

Total changes in the year--

¥213,068

1,069

-

-

-

1,069

¥211,999

Additional
paid-in
capital-

1,069¥187,681

Commonstock¥43,071

94,341--

96,716327(2,702)-¥(51,269)¥(225)

(11)

-

(11)

-

-

-

-

¥(214)

Retainedearnings(accumulated Treasury stock
deficit)

Shareholders’ equity

Cash dividends
Adjustments of retained earnings(accumulated deficit) due to change
in scope of the consolidation
Net income

Exercise of warrants

Changes of items during the year

Balance at April 1, 2009

Fiscal year from April 1, 2009 to March 31, 2010:¥444,665

96,468-(11)

96,716327(2,702)2,138¥348,197

Total

Valuation and translation adjustments¥43,864

12,53012,530

-

-

-

-

-

¥31,334¥ 14,528(10,589)(10,589)

-

-

-

-

-

¥ 25,117¥(32,525)(1,971)(1,971)

-

-

-

-

-

¥(30,554)

Unrealized gain Deferred gain (loss) Foreign currency(loss) on
on derivatives
translation
available-forunder hedge
adjustments
sale securities
accounting¥25,866

(30)

(30)

-

-

-

-

-

¥25,897

Total

¥476

187

187

-

-

-

-

-

¥289

Stock acquisitionrights¥492,963

42,54842,548

-

-

-

-

-

¥450,414

Minority
interests¥963,971

139,173

42,705(11)

96,716327(2,702)2,138¥824,798

Total equity(Millions of yen)

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the fiscal year ended March 31, 2010

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the fiscal year ended March 31, 2010

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

Fiscal year ended
March 31, 2009

Fiscal year ended
March 31, 2010

April 1, 2008 to
March 31, 2009

April 1, 2009 to
March 31, 2010

Cash flows from operating activities:
Income before income taxes and minority interests¥107,338¥289,249

Depreciation and amortization

236,013

243,944

Amortization of goodwill

61,111

61,070

Impairment loss

29,478

1,406

Loss on retirement of non current assets

3,029

48,786Equity in losses of affiliated companies

13,7593,616

Dilution gain from changes in equity interest, net(2,410)(327)

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

11,504

5,167

5,316

303

Foreign exchange gain , net(3,037)(1,494)(4,621)(1,818)Interest and dividend income(2,396)(1,370)Interest expense

112,345

111,152

Decrease in receivables - trade

1,699

59,637

Decrease in payables - trade(29,230)(1,038)62,397(11,854)605,425

803,304

2,603

1,234

Interest paid

(99,761)(97,297)

Income taxes paid

(60,408)(39,191)

447,857

668,050

Adjustments for:

Changes in operating assets, and liabilities

Other, net
Sub-totalInterest and dividends received

Net cash provided by operating activities- Continued -32

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the fiscal year ended March 31, 2010

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

Fiscal year ended
March 31, 2009

Fiscal year ended
March 31, 2010

April 1, 2008 to
March 31, 2009

April 1, 2009 to
March 31, 2010

Cash flows from investing activities:
Purchase of property and equipment, and intangibles¥ (240,637)¥ (223,818)(33,197)(56,686)

18,85819,040(17,530)(20,880)

6,212

5,183

(266,295)(277,162)

Increase (decrease) in short-term borrowings, net

116,358(112,910)

Proceeds from long-term debt

234,681

337,929

Repayment of long-term debt

(372,300)(516,051)-

183,433(108,930)(70,675)

Exercise of warrants

517

2,138

Proceeds from issuance of shares to minority shareholders

1,137

1,493

Cash dividends paid

(2,680)(2,678)Cash dividends paid to minority shareholders(4,121)(4,618)Purchase of treasury stock of consolidated subsidiaries
Proceeds from sale and lease back of equipment newly acquired(71,166)(3,069)90,208135,941

Repayment of lease obligations(81,347)(103,052)

Other, net(12,705)(7,442)

Net cash used in financing activities(210,348)(159,563)(2,383)(606)(31,169)

230,718357

126(1,810)(807)

490,266

457,644¥457,644¥687,681

Purchase of marketable and investment securities
Proceeds from sale of marketable and investment securities
Acquisition of interests in subsidiaries newly consolidated,
net of cash acquired
Other, net
Net cash used in investing activities
Cash flows from financing activities:

Proceeds from issuance of bonds
Redemption of bonds

Effect of exchange rate changes
on cash and cash equivalents
Net (decrease) increase in cash and cash equivalents
Increase in cash and cash equivalents due to newly consolidated
subsidiaries
Decrease in cash and cash equivalents due to exclusion ofpreviously consolidated subsidiaries
Cash and cash equivalents, beginning of the year
Cash and cash equivalents, end of the year

33

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the fiscal year ended March 31, 2010(5) Significant Doubt about Going Concern Assumption
There are no applicable items for the fiscal year ended March 31, 2010.

(6) Basis of Presentation of Consolidated Financial Statements
1. Changes in scope of consolidation
As of March 31, 2010, SOFTBANK CORP. (the “Company”) consolidated 109 subsidiaries (together, the “Group”). 63
subsidiaries were not consolidated as the individual and aggregate amounts were not considered material in relation to theconsolidated total assets, net sales, net income and retained earnings (accumulated deficit) of the SOFTBANK Consolidated
Financial Statements.
Changes in scope of consolidation are as follows:<Increase>
8 companies
Significant changes:
Viewn Corp.
Newly established<Decrease>
7 companies
Significant changes:
Merged with Yahoo Japan Corporation
Overture K.K.
2. Changes in scope of equity method
As of March 31, 2010, the Company held 6 non-consolidated subsidiaries and 58 affiliates, all of which were accounted forunder the equity method. 57 non-consolidated subsidiaries and 25 affiliates were not accounted for under the equity method,as the individual and aggregate amounts were not considered material in relation to the net income and retained earnings(accumulated deficit) of the SOFTBANK Consolidated Financial Statements.
Changes in scope of equity method are as follows:<Increase>
5 companies
Significant changes:
Additionally acquired
Oak Pacific Interactive
Additionally acquired
RockYou, Inc.
<Decrease>
15 companies
3. Fiscal year end
Fiscal year ends of consolidated subsidiaries for both domestic and overseas entities are as follows:<Fiscal year end>
March end
(same as the consolidated balance sheet date)
April end
June end
July end
December end
January end
February end

34<Domestic><Overseas>

48
1
1
2
2

34
2
18
1
-

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the fiscal year ended March 31, 2010

4. Summary of significant accounting policies(1) Evaluation standards and methods for major assets[1] Marketable securities and investment securities
Held-to-maturity debt securities: Stated at amortized cost
Available-for-sale securities:
With market quotations:
Stated at fair value, which represents the market prices at the balance sheet date(unrealized gain/loss is included as a separate component in equity, net of tax, while
cost is primarily determined using the moving-average method)
Without market quotations:
Carried at cost, primarily based on the moving-average method
Certain subsidiaries of the Company in the United States of America qualify as investment companies under theprovisions set forth in Financial Services – Investment Companies of the FASB Accounting Standards Codification
Topic 946 (ASC 946) and account for the investment securities in accordance with the ASC 946. The investment
securities are carried at fair value, and net changes in fair value are recorded in the consolidated statements of income
under the application of the ASC 946.
[2] Derivative instruments:

Stated at fair value[3] Inventories (merchandise):

Carried at cost, primarily net selling value determined by the moving-average method(2) Depreciation and amortization[1] Property and equipment:
Buildings and structures:
Telecommunications equipment:
Telecommunications service lines:
Others:Computed primarily using the straight-line method
Computed using the straight-line method
Computed using the straight-line method
Computed primarily using the straight-line method[2] Intangible assets:
Computed using the straight-line method
Finance leases in which the ownership of leased assets is not transferred to lessees at the end of lease periods are computed
using the straight-line method over the period of the finance leases. Finance lease transactions in which the ownership ofleased assets was not transferred to lessees and contracted before April 1, 2008 are accounted for as operating leasetransactions and “as if capitalized” information is disclosed in the notes to the Company’s consolidated financial statements.
(3) Accounting principles for major allowances and accruals<Allowance for doubtful accounts>
To prepare for uncollectible credits, allowance for doubtful accounts is calculated based on the actual bad debt ratio, andspecific allowance for doubtful accounts deemed to be uncollectible is calculated considering its collectability.
<Accrued retirement benefits>
SOFTBANK MOBILE, SOFTBANK TELECOM, and certain other subsidiaries have defined benefit pension plans
for their employees. These companies account for the obligation for retirement benefits based on the projected benefit
obligations at the end of the fiscal year.
SOFTBANK MOBILE and SOFTBANK TELECOM amended the pension plans by suspending the defined benefit
pension plans at the end of March 2007 and March 2006, respectively, and implementing defined contribution pension
plans. The retirement benefits existed and calculated under the benefit pension plan were fixed and will be paid at theretirement of applicable employees, and the projected benefit obligations are calculated based on these fixed retirement
benefits. As a result, service cost under the defined benefit pension plans at SOFTBANK MOBILE and SOFTBANKTELECOM did not occur for the fiscal year ended March 31, 2009.

35

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the fiscal year ended March 31, 2010

<Allowance for point mileage >SOFTBANK MOBILE has an allowance for point mileage which is accrued based on the estimated future obligation
arising from point service, based on past experience.
(4) Translation of foreign currency transactions and accounts
All assets and liabilities in foreign currencies are translated at the foreign currency exchange rates prevailing at the respectivebalance sheet dates. Foreign currency exchange gains or losses are charged to net income when incurred.
The translation of foreign currency denominated revenues and expenses in the financial statements of foreign consolidated
subsidiaries into Japanese yen is performed by using the average exchange rate for the period. Assets and liabilities aretranslated using the foreign currency exchange rates prevailing at the balance sheet dates, and capital stock is translated using
the historical foreign currency exchange rates. Foreign currency financial statement translation differences are presented asa separate component of “Equity,” and the portion pertaining to minority shareholders, which is included in “Minority
interests.”(5) Accounting for significant hedge transactions[1] Forward-exchange contract① <Hedge accounting>Receivables and obligations denominated in foreign currencies for which foreign exchange forward contracts are used tohedge the foreign currency fluctuation are translated at the contracted rate, if the forward contracts qualify for hedge
accounting. For forecasted transactions denominated in foreign currencies, recognitions of gains or losses resulting
from changes in fair value of derivative instruments for hedging are deferred until the related gains and losses on hedged
items are recognized.
② <Derivative instruments for hedging and hedged items>
Derivative instruments for hedging:
Forward-exchange contract
Hedged items:
Foreign currency-denominated receivables, obligations andforecasted transactions③ <Hedging policy>
In accordance with the Group’s policy, derivative financial instruments are used to hedge foreign exchange risk associatedwith hedged items denominated in foreign currencies.
④ < Effectiveness of hedge transactions >For receivables and obligations denominated in foreign currencies, effectiveness of the hedge transaction is omitted due toqualifying for hedge accounting. For forecasted transaction denominated in foreign currencies, the effectiveness of hedgetransaction is assessed by measuring high correlation between the variability of cash flows associated with the foreign
currency fluctuation of hedged items and variability of cash flows of hedge instruments.
[2] Interest rate swap
① <Hedge accounting>
Recognitions of gains or losses resulting from changes in fair value of derivative instruments for hedging are deferred until
the related gains and losses on hedged items are recognized.
② <Derivative instruments for hedging and hedged items>
Derivative instruments for hedging:Interest rate swap contracts
Hedged items:
Interest expense on borrowings③ <Hedging policy>
In accordance with the Group’s policy, derivative financial instruments are used to hedge the risk of exposures tofluctuations in interest rates in accordance with its internal policies, regarding the authorization and credit limit amount.
④ < Effectiveness of hedge transactions >The effectiveness of hedge transaction is assessed by measuring high correlation between the variability of cash flows
associated with the interest rate of hedged items and variability of cash flows of hedge instruments.

36

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the fiscal year ended March 31, 2010

[3] Collar transaction① <Hedge accounting>Unrealized gains and losses, net of tax, on a collar transaction that qualifies as an effective cash flow hedge at
consolidated subsidiaries in the United States of America are reported as a separate component of “Equity” in the
Company’s consolidated balance sheets. As such, unrealized gains and losses associated with the collar transaction will
be recognized into earnings in the same period during which the hedged assets and liabilities are recognized in earnings.
② <Derivative instruments for hedging and hedged items>
Derivative instruments for hedging:
Prepaid variable share forward contract (the collar transaction)
Hedged items:
Equity security③ <Hedging policy>
The purpose of the collar transaction is to hedge the variability of cash flows associated with the future market price of
the underlying equity security, which is used for the settlement of loans at maturity.
④ <Effectiveness of hedge transactions>
The effectiveness of hedge transaction is assessed by measuring high correlation between the variability of cash flows
associated with the market price of hedged items and variability of cash flows of hedge instruments.
(6) Other[1] Accounting method for consumption taxes
Consumption taxes are accounted for using the net method of reporting.
[2] Application of consolidated taxation system
BB Mobile Corp., SOFTBANK MOBILE, and its four subsidiaries, all of which are subsidiaries of the Company,
adopted the consolidated taxation system.
5. Accounting for business combinations
All assets and liabilities of acquired entities are revalued at the respective fair market value at the combination date.
6. Amortization of goodwill“Goodwill” is amortized on a straight-line basis over reasonably estimated periods in which economic benefits are expected tobe realized. Immaterial goodwill is expensed as incurred.
The goodwill resulted from acquisition of Vodafone K.K. (currently SOFTBANK MOBILE) is amortized over a
20-year-period.
7. Scope of cash and cash equivalents in the consolidated statements of cash flows“Cash and cash equivalents” are comprised of cash on hand, bank deposits withdrawable on demand and highly liquid
investments with initial maturities of three months or less and a low risk of fluctuation in value.

37

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the fiscal year ended March 31, 2010(7) Notes(Consolidated Balance Sheets)
1. Accumulated depreciation of property and equipment
As of March 31, 2009
966,322

million yen

As of March 31, 2010
1,048,584

million yen

2. Investments in non-consolidated subsidiaries and affiliates
As of March 31, 2009
Investment securities and investments in partnerships

133,791

As of March 31, 2010

million yen

149,025

million yen

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

As of March 31, 2010
Subject Bonds

Issue date

Maturity date

Third Series Unsecured Bond

August 19, 1998

August 19, 2010

25,000Fifth Series Unsecured Bond

August 25, 2000

August 25, 2010

25,000Seventh Series Unsecured Bond

September 22, 2000

September 22, 2010

25,000

Total

Amount of transferred bond

75,000 million yen

38

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the fiscal year ended March 31, 2010

4. Secured loans(1) Assets pledged as collateral for secured liabilities[1] For short-term borrowings and long-term debt
Assets pledged as collateral and secured liabilities by consolidated subsidiaries are as follows:
As of March 31, 2009

As of March 31, 2010

Assets pledged as collateral:
Cash and deposits

212,414213,098

Notes and accounts receivable - trade

312,831273,231

Buildings and structures

12,774

12,133

Telecommunications equipment

260,509

182,945

Telecommunications service lines

189

86

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

10,617

10,633

66,86381,701

Total

908,201

31,99917,225
million yen

As of March 31, 2009

791,054

million yen

As of March 31, 2010

Secured liabilities:
Accounts payable - trade

1,239

Short-term borrowings

2,903

1,928

1,287,099

1,086,707

Long - term debt
Total

1,291,242

1,674

million yen

1,090,310

million yen

Consolidated subsidiaries shares owned by SOFTBANK MOBILE, SOFTBANK MOBILE shares owned by BB Mobile
Corp. and BB Mobile Corp. shares owned by Mobiletech Corporation are pledged as collateral for long-term debt (totaled to¥1,184,853 million and ¥986,702 million, as of March 31, 2009 and March 31, 2010, respectively) resulting from theacquisition of SOFTBANK MOBILE, in addition to the assets pledged as collateral above.

[2] For borrowings of investee
Assets pledged as collateral for third party’s liability are as follows:
As of March 31, 2009
Assets pledged as collateral:
Investment securities and investments in unconsolidated
subsidiaries and affiliated companies-

million yen

As of March 31, 2010

2,000

million yen(2) Borrowings by securitization of receivables[1] The securitization of installment sales receivable of SOFTBANK MOBILE
Cash proceeds through the securitization of installment sales receivables of SOFTBANK MOBILE, excluding that
qualify for derecognition criteria of a financial asset, were included in “Short-term borrowings” (¥185,669 million and¥175,359 million, as of March 31, 2009 and March 31, 2010, respectively) and “Long-term debt” (¥36,256 million and¥44,454 million, as of March 31, 2009 and March 31, 2010, respectively). The amounts of the senior portion of the
securitized installment sales receivables (¥ 221,925 million and ¥219,813 million, as of March 31, 2009 and as ofMarch 31, 2010, respectively) were included in “Notes and account receivable-trade”, along with the subordinatedportion held by the SOFTBANK MOBILE. The trustee raised the funds through asset backed loans based on thereceivables.

39

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the fiscal year ended March 31, 2010[2] The securitization of receivables for ADSL services of SOFTBANK BBSOFTBANK BB transferred its senior portion of the securitized present and future receivables for ADSL services* to a
SPC (a consolidated subsidiary), and the SPC raised the funds through asset backed loans based on the receivables(¥20,000 million and ¥10,504 million, as of March 31, 2009 and March 31, 2010, respectively) from a financial
institution. Cash proceeds through the asset backed loans are included in the “Short-term borrowings” (¥6,660 millionand ¥6,660 million, as of March 31, 2009 and March 31, 2010, respectively) and “Long-term debt” (¥13,340 million,and ¥3,844 million, as of March 31, 2009 and March 31, 2010, respectively).
Note:* A certain portion of present and future (through March 2012) receivables realized through the ADSL services
provided by SOFTBANK BB.
(3) Borrowings by security lending agreements
Cash receipts as collateral from financial institutions, to whom the Company lent a portion of shares in its subsidiary under
security lending agreements are presented as follows:
As of March 31, 2009
Short-term borrowings

110,000

million yen

As of March 31, 2010
114,000

million yen(4) Others
A consolidated subsidiary purchased assets by installments, and the assets of which ownership was not transferred to theconsolidated subsidiary and its installment payables are as follows:
As of March 31, 2009

As of March 31, 2010

Assets of which ownership is not transferred:
Buildings and structures-

35

Telecommunications equipment-

16,710Construction in progress

-

1,538

Software-

4,755

Other intangibles-

12

Investments and other assets - other assets
Total

-

240

-

million yen

As of March 31, 2009

23,292

million yen

As of March 31, 2010

Installment payables:
Other current liabilities-

Long term liability - other liabilities
Total

-

4,148
20,741
million yen

24,889million yen

5. Line of credit as a creditor (not used)
As of March 31, 2009
17,26640

million yen

As of March 31, 2010
16,846

million yen

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the fiscal year ended March 31, 2010

6. Financial covenants
The Group's interest-bearing debt includes financial covenants, with which the Group is in compliance. The major financial
covenants are as follows. If the Group fails to comply with the following covenants, creditors may require repayment of all
debt. (Where the covenants set several conditions, the strictest condition is presented below.)(1) The amount of the Company's net assets at the end of the year and the first half of the year must not fall below75% of theCompany's net assets at the end of the previous year.
(2) The amount of the Company's net assets at the end of the year must not fall below ¥311.6 billion.
(3) At the end of the year and the first half of the year, balance sheets of SOFTBANK BB and SOFTBANK TELECOM must
not show a net capital deficiency. The consolidated balance sheets of BB Mobile Corp. at the end of the year and the firsthalf of the year must not show a net capital deficiency.
(4) Other than the exceptions listed below, as a general rule, members of the following restricted group of companies (the“restricted group”), will not take on debt obligations*1 from any company not included in the restricted group or issue any
preferred stock after October 12, 2006, the issuance date of these Euro-denominated Senior Notes due 2013.
(Restricted group)(a) SOFTBANK CORP.
(b) SOFTBANK BB Corp.
(c) SOFTBANK TELECOM Corp.
(d) SOFTBANK MOBILE Corp.
(e) Mobiletech Corporation(f) BB Mobile Corp.
(g) TELECOM EXPRESS Co., Ltd.
(h) Japan System Solution Co., Ltd.*2(i) SBBM Corporation(j) SOFTBANK TELECOM PARTNERS Corp.
(k) Shiodome Management CORP.

(Exceptions)
The major exceptions are as follows:ⅰ. SOFTBANK CORP. is permitted to borrow up to ¥200 billion through its commitment line, etc.
ⅱ.Borrowing related to the acquisition of Vodafone K.K. (currently SOFTBANK MOBILE) (including refinancing) is permitted
up to a principal amount of ¥1,450 billion.
ⅲ.Among the restricted group, those involved in the Mobile Communications business segment (d, f, g, h) are permitted to incur
capital expenditure related debt incurring activities*1 up to a principal amount of ¥400 billion.
ⅳ. SOFTBANK TELECOM is permitted to borrow up to a principal amount of ¥175 billion.
ⅴ.The refinancing of the outstanding debt of the restricted group as of October 12, 2006, the issuance date of those notes, ispermitted up to the same level of principal amount.
ⅵ. In the event that [1] a company in the restricted group incurs lease obligations or [2] a subsidiary of SOFTBANK CORP.
other than the members of the restricted group incur lease obligations, SOFTBANK CORP. is permitted to provide
guarantees to leasing companies up to a principal amount of ¥400 billion for the total of [1] and [2].
ⅶ.SOFTBANK CORP. is permitted to make security lending transactions using the stock of Yahoo Japan up to, as a generalrule, ¥200 billion.
ⅷ.Debt-incurring activities*1 which are pari passu with those notes are permitted up to ¥150 billion.

41

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the fiscal year ended March 31, 2010

ⅸ.Other than (ⅰ) to (ⅷ) above, debt-incurring activities without causing the sum of net indebtedness, redemption or
repurchase price for preferred stocks and lease obligations of restricted group (includes the amount of indebtedness
previously incurred in reliance on (ⅷ) above) to exceed 6.5 times of the Consolidated EBITDA *3 of the restricted group, ispermitted.
Notes:*1. Debt-incurring activities include new borrowings, leasing, etc.
*2. (h) Japan System Solution Co., Ltd. was merged with (d) SOFTBANK MOBILE Corp. on April 1, 2010.
*3. Consolidated EBITDA (Consolidated Earning Before Interests, Taxes, Depreciation, and Amortization)
Consolidated net income of the restricted group plus income taxes, interest expense, lease expenses, depreciation andamortization, and other non cash charges.
(5) SOFTBANK MOBILE received a loan (the “SBM loan”) from Mizuho Trust & Banking Co., Ltd. (the “lender”), which, as
the Tokutei Kingai Trust Trustee, was entrusted with the proceeds by WBS Funding*4. Under the terms of the SBM loan
agreement, SOFTBANK MOBILE is allowed a certain degree of flexibility in its business operations, as a general rule.
However, in the event that the loan agreement's financial performance targets (reduction in cumulative debt, adjusted
EBITDA*5, leverage ratio*6) or operational performance targets (number of subscribers) are not met, depending on theimportance and the timing of the issue, the influence of the lender on the operations of SOFTBANK MOBILE might beincreased. It is possible that limits will be placed on capital investment, that prior approval will be required fordevelopment of new services, that a majority of the board directors will be appointed, and that rights to assets pledged ascollateral, including shares of SOFTBANK MOBILE, will be exercised. As of March 31, 2010, there is no infringementof the debt covenants.
Notes:*4. WBS Funding (Whole Business Securitization Funding)A special-purpose company for the purpose of allocating the total amount raised from domestic and foreign financial
institutions--¥1,441.9 billion--under the WBS scheme through the Tokutei Kingai Trust Trustee for the SBM loan to
SOFTBANK MOBILE. SOFTBANK MOBILE borrowed from Tokutei Kingai Trust Trustee an amount of ¥1,366
billion, representing the total amount of ¥1,441.9 billion raised by WBS Funding less such items as interest hedge costs
and interest reserve.
*5. Adjusted EBITDA
Lease payments which are included in operating expenses are added back to EBITDA.
*6. Leverage ratio
Leverage ratio = Debt / Adjusted EBITDA. The balance of debt does not include capital financing, subordinatedloans from the SOFTBANK Group or Vodafone Oversea Financial Limited or existing bonds.

42

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the fiscal year ended March 31, 2010

(Consolidated Statements of Income)
1. Selling, general and administrative expenses
Sales commission and sales promotion expense

Fiscal year ended
March 31, 2009
423,789 million yen

Fiscal year ended
March 31, 2010
471,920 million yen

Payroll and bonuses

112,670

125,798

Provision for allowance for doubtful accounts

33,3418,499

2. Unrealized appreciation (loss) on valuation of investments and loss on sale of investments at subsidiaries in the UnitedStates of America, net
Certain subsidiaries of the Company in the United States of America qualify as investment companies under the provisions set
forth in Financial Services – Investment Companies of the FASB Accounting Standards Codification Topic 946(ASC 946) andaccount for investment securities in accordance with ASC 946.
The net changes in the fair value of the investments are recorded as unrealized appreciation (loss) on valuation of investments
and loss on sale of investments at subsidiaries in the U.S., net and loss on sale of investments, computed based on theacquisition cost, is also included in this account. The unrealized appreciation (loss) on valuation of investments and loss onsale of investments included in unrealized appreciation (loss) on valuation of investments and loss on sale of investments at
subsidiaries in the U.S., net in the consolidated statements of income are as follows:
Fiscal year ended
March 31, 2009
Unrealized appreciation (loss) on valuation of investment
at subsidiaries in the U.S.,net
Loss on sale of investments
at subsidiaries in the U.S.,net
Total

Fiscal year ended
March 31, 2010

(234)

1,927

(5,081)(2,230)(5,316) million yen(303)

million yen

3. Loss on retirement of non current assets
Fiscal year ended March 31, 2010
(1) Loss on retirement of non current assets related to the termination of second-generation mobile phone services
Certain pieces of telecommunications equipment being used exclusively for second-generation (2G) mobile phone services
in the Mobile communications business are to be removed upon termination of 2G mobile phone services in March, 2010.
These pieces of telecommunications equipment were depreciated under the straight-line method over the period
commencing from the acquisition of Vodafone K.K. (currently SOFTBANK MOBILE) in April 2006 to the termination of
2G services in March, 2010.
In June 2009, a new frequency for the next generation mobile phone services was assigned to SOFTBANK MOBILE.
The telecommunications equipment being used for 2G mobile phone services except for the aforementioned equipment wasreviewed to determine which pieces would be used for the next generation mobile phone services and which pieces will be
removed. For the year ended March 31, 2010, loss on retirement of non current assets was recorded for the assets to be
additionally removed. As the assets to be removed upon termination of 2G services were specified, it became possible toreasonably estimate the removal costs. These removal costs were included in loss on retirement of non current assets inthe consolidated statements of income for the year ended March 31, 2010.
The loss on retirement of non current assts of ¥23,011 million consists of ¥16,544 million for equipment removal cost and¥6,467 million for loss on retirement of telecommunications equipment.
(2) Loss on retirement of non current assets related to the telecommunications equipment for third-generation mobile phone
SOFTBANK MOBILE replaced certain pieces of existing wireless network equipment in order to increase efficiency of
the future capital expenditures and reduce maintenance costs. As a result, the previously used wireless network equipment
for third-generation mobile phone services was retired, and the total carrying amounts of the retired assets and the related
removal costs were recorded as loss on retirement of non current assets in the consolidated statements of income for theyear ended March 31, 2010. The loss on retirement of non current assets of ¥22,493 million consists of ¥13,726 million
for telecommunications equipment, ¥8,689 million for software, and ¥77 million for removal costs.

43

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the fiscal year ended March 31, 2010

4. Impairment loss
Fiscal year ended March 31, 2009
The Group recorded impairment loss for the following asset groups.
Segment

Purpose of use

Type of assets

Impairment loss

Telecommunications equipment, FinanceBroadband Infrastructure Assets for FTTH infrastructural business lease assets, Construction in progress,¥28,999 million

Software, Structures, and other
Internet Culture

Other

Goodwill¥479 million(1) Method used to determine assets grouping
When reviewing for impairment, assets are grouped based on the business unit within the Group. Moreover, assets related todisposition or restructuring of a business, idled assets, and assets leased to others are grouped individually.
(2)Details of Impairment loss
[1] Impairment loss of assets in Broadband Infrastructure business
As SOFTBANK BB launched Yahoo BB hikari with FLET’S, which is a new FTTH Internet connection service, thefuture revenue generated from the assets for Yahoo BB! hikari service, which is a current FTTH infrastructural service,
was reassessed. As a result, impairment loss for the total carrying amounts of the assets and the removal costs wererecorded in the consolidated statements of income, since the carrying amounts of the assets were not recovered byestimated future cash flows.
The impairment loss consists of ¥10,702 million for telecommunications equipment, ¥7,259 million for finance leaseassets*, ¥4,630 million for constructing in progress, ¥1,265 million for software, ¥880 million for structures and ¥4,261
million for removal costs.
For the calculation of impaired value of the leased assets, the present values of the future lease payments were considered
to be the carrying value of leased assets.
Note: *The finance lease assets contracted before April 1, 2008 are accounted for as operating lease transactions.
[2] The goodwill related to certain subsidiaries of the Internet culture segment was recorded as an impairment loss in the
consolidated statements of income.

44

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the fiscal year ended March 31, 2010

(Consolidated Statements of Changes in Equity)
Fiscal year from April 1, 2008 to March 31, 2009:
1. Class and number of outstanding shares:(shares in thousands)

March 31, 2008

Increase

Decrease

March 31, 2009

1,080,664

359-

1,081,023

Number of common stocks

Note: Increase resulted from the exercise of stock acquisition rights.
2. Class and number of treasury stocks:(shares in thousands)

March 31, 2008

Increase

Decrease

163

5

-

Number of common stocks

March 31, 2009169

Note: Increase resulted from the acquisition of the fractional shares.
3. Stock acquisition rights:(1) Stock acquisition rights as stock options
Type

Detail ofstock acquisition rights

Consolidated
Subsidiaries-

Number of shares for stock acquisition rights(in thousands)
March 31,
March 31,
Increase
Decrease
2009
2008

Class of shares

Total

Millions ofyenMarch 31,
2009

-

271

-

271

(2) Stock acquisition rights other than aboveType

Detail ofstock acquisition rights

Consolidated
Subsidiaries-

Number of shares for stock acquisition rights(in thousands)
March 31,
March 31,
Increase
Decrease
2009
2008

Class of shares

Total

Millions ofyenMarch 31,
2009

-

18

-

18

4. Dividends:(1) Dividend paid
Resolution

Class ofAmount of dividend

Dividend pershares(Millions of yen)share

Ordinary general meeting ofCommonshareholders, June 25, 2008

stocks

2,701

¥2.50

Record date

Effective date

March 31, 2008

June 26, 2008

(2) Dividends which recorded date is in the fiscal year 2009 and effective date for payment is in the fiscal year 2010
Resolution

Class ofAmount of dividend

Source ofDividend

shares(Millions of yen)

dividend

per share

Ordinary general meeting ofCommonshareholders, June 24, 2009

stocks2,702

45

Retainedearnings¥2.50

Record date

Effective date

March 31, 2009

June 25, 2009

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the fiscal year ended March 31, 2010

Fiscal year from April 1, 2009 to March 31, 2010:
1. Class and number of outstanding shares:(shares in thousands)

March 31, 2009

Increase

Decrease

March 31, 2010

1,081,023

1,479

-

1,082,503

Number of common stocks

Note: Increase resulted from the exercise of stock acquisition rights.
2. Class and number of treasury stocks:(shares in thousands)

March 31, 2009

Increase

Decrease

169

5

-

Number of common stocks

March 31, 2010174

Note: Increase resulted from the acquisition of the fractional shares.
3. Stock acquisition rights:(1) Stock acquisition rights as stock options
Type

Detail ofstock acquisition rights

Consolidated
Subsidiaries-

Number of shares for stock acquisition rights(in thousands)
March 31,
March 31,
Increase
Decrease
2010
2009Class of shares

Total

Millions ofyenMarch 31,
2010

-

450

-

450

(2) Stock acquisition rights other than aboveType

Detail ofstock acquisition rights

Consolidated
Subsidiaries-

Number of shares for stock acquisition rights(in thousands)
March 31,
March 31,
Increase
Decrease
2010
2009Class of shares

Total

Millions ofyenMarch 31,
2010

-

25

-

25

4. Dividends:(1) Dividend paid
Resolution

Class ofAmount of dividend

Dividend pershares(Millions of yen)share

Ordinary general meeting ofCommonshareholders, June 24, 2009

stocks

2,702

¥2.50

Record date

Effective date

March 31, 2009

June 25, 2009

(2) Dividends which recorded date is in the fiscal year 2010 and effective date for payment is in the fiscal year 2011
Resolution

Class ofAmount of dividend

Source ofDividend

shares(Millions of yen)

dividend

per share

Ordinary general meeting ofCommonshareholders, June 25, 2010

stocks5,411

46

Retainedearnings¥5.00

Record date

Effective date

March 31, 2010

June 28, 2010

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the fiscal year ended March 31, 2010

(Consolidated Statements of Cash Flows)
1. Reconciliation of cash and cash equivalents to the amounts presented in the accompanying consolidated balance sheets
As of March 31, 2009
million yen

As of March 31, 2010

Cash and deposits

457,953

Marketable securities

2,917

4,342

Time deposits with original maturity over three months(442)(2,733)

Stocks and bonds with original maturity over three months(2,783)(3,980)Cash and cash equivalents

457,644

million yen

690,053 million yen

687,681 million yen

2. Scope of Purchase of property and equipment, and intangibles in the consolidated statements of cash flows“Purchase of property and equipment, and intangibles” are comprised of cash outflows from purchasing property and equipment,
and intangible assets (excluding goodwill) and long-term prepaid expenses.
3. Proceeds from sale and lease back of equipment newly acquired
Once SOFTBANK MOBILE and others purchase telecommunications equipment for the purpose of assembly, installation andinspection, SOFTBANK MOBILE and others sell the equipment to lease companies for sale and lease back purposes. The
leased asset and lease obligation are recorded in the consolidated balance sheets.
The cash outflows from the purchase of the equipment from vendors are included in “Purchase of property and equipment, andintangibles” and the cash inflows from the sale of the equipment to lease companies are included in “Proceeds from sale andlease back of equipment newly acquired.”4.

Assets and liabilities of newly consolidated subsidiaries by acquisition
Fiscal year ended March 31, 2009
The estimated fair values of the assets acquired and liabilities assumed of a new consolidated subsidiary at the acquisition dateare as follows:
SOFTBANK TELECOM PARTNERS Corp.
As of April 1, 2008
Current assets

20,250Non-current assets

million yen

401

Goodwill

22,077

Current liabilities(12,726)

Acquisition cost before April, 2008

(4,473)Acquisition cost

25,530Cash and cash equivalents of newly(8,325)consolidated subsidiary*
Payment for the acquisition(17,204)

million yen

Note: *Loan receivables to the seller of SOFTBANK TELECOM PARTNERS Corp. of ¥7,500 million, which werecollected at the same time of the payment for the acquisition, were included.

47

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the fiscal year ended March 31, 2010

Fiscal year ended March 31, 2010
The estimated fair values of the assets acquired and liabilities assumed of a new consolidated subsidiary at the acquisition dateare as follows:
BB Modem Rental Yugen Kaisha
As of March 31, 2010
Current assets

13,685

Non-current assets

9,618

Goodwill

4,679

Current liabilities
Acquisition cost

million yen(7,142)*2

20,840Cash and cash equivalents of newly-

consolidated subsidiary
Payment for the acquisition(20,840)

million yen

Notes:*1. SOFTBANK BB spun off its modem rental business in order to concentrate on its core broadband business andestablished BB Modem Rental Yugen Kaisha (“BB Modem rental”) in 2005. SOFTBANK BB sold its modem rental
business (the sale of all BB Modem Rentals’ whole ownership interest) to Yugen Kaisha Gemini BB in 2005.
On February 16, 2010, SOFTBANK BB acquired all shares of BB Modem Rental from Gemini BB Holdings, as aresult of reconsideration of significance of its modem rental business after the Group’s entry into Mobile
Communications business in 2006. SOFTBANK BB merged BB Modem Rental on March 31, 2010, effectively.
*2. Loan payable to SOFTBANK BB of ¥20,827 million was included.

5. Non-cash investing and financing transaction
Acquisition of fixed assets by installments is ¥23,695 million for the fiscal year ended March 31, 2010.

48

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the fiscal year ended March 31, 2010

(Segment Information)
1. Business segment information
For the fiscal year ended March 31, 2009
Mobile(Millions of yen)Fixed-line

Broadband

Internet

Elimination
e-Commerce

Others

Total

CultureConsolidated

Communications

Infrastructure

Telecommunications¥1,554,783¥229,241¥320,358¥251,166¥247,352¥70,133¥2,673,035¥-¥2,673,035

8,107

5,958

43,273

3,071

10,831

18,09389,335(89,335)-

Total

1,562,890

235,199363,632

254,238

258,184

88,2262,762,371(89,335)

2,673,035

Operating expenses

1,391,500

187,946

344,663

129,140

253,547

88,4202,395,220(81,305)

2,313,914

Operating income (loss)

171,389

47,253

18,968125,098

4,636

(194)

367,151(8,030)359,121

Identifiable assets

3,033,653

158,146436,256

347,395

69,086

240,818

4,285,357

101,314

4,386,672

Depreciation
and amortization

212,946

22,012

44,31912,290

1,328

3,309

296,206

918

297,124

Impairment loss-

28,999

-

479

-

-

29,478-29,478¥199,568¥14,697¥51,824¥31,984¥1,414¥4,766¥304,256¥241¥304,498

or Corporate

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

Capital expenditures

For the fiscal year ended March 31, 2010
Mobile(Millions of yen)Fixed-line

Broadband

Internet

Elimination
e-Commerce

Others

Total

CultureConsolidated

Communications

Infrastructure

Telecommunications

or Corporate¥1,692,326¥199,222¥304,182¥266,099¥237,833¥63,742¥2,763,406¥-¥2,763,406

Net sales(1) Customers

9,120

4,206

44,5094,792

11,50922,51396,651(96,651)-

Total(2) Inter-segment

1,701,446

203,428

348,692

270,891

249,343

86,2552,860,057(96,651)

2,763,406

Operating expenses

1,440,514

154,649

325,701

135,739

243,550

84,691

2,384,845(87,310)

2,297,535

Operating income

260,931

48,77922,990135,152

5,793

1,564

475,211(9,340)465,871

Identifiable assets

2,970,682

149,286

404,736475,563

73,256247,342

4,320,867

142,008

4,462,875

Depreciation
and amortization

227,925

17,16742,566

11,819

1,480

3,118

304,077936

305,014

Impairment loss

-

-

-

1,406

-

-

1,406

-

1,406

¥184,770¥18,712¥18,039¥7,885¥883¥4,021¥234,312¥322¥234,634

Capital expenditures

Notes:
1. Business segments are categorized primarily based on the nature of business operations, type of services, and similarity of sales channels
which the SOFTBANK Group uses for its internal management purpose.
2. Regarding the main business segments, please see “Qualitative Information / Financial Statements 2. The SOFTBANK Group” in details
on page 22.
3. Unallocated operating expenses for the fiscal year ended March 31, 2009 and March 31, 2010 in the column “Elimination or Corporate,”
mainly represent expenses of the corporate division of the Company, which totaled ¥9,278 million and ¥10,577 million, respectively.
4. Corporate assets at March 31, 2009 and 2010 in the column “Elimination or corporate” were ¥135,258 million and ¥172,177 million,
respectively. Corporate assets represent mainly surplus operating funds (cash and marketable securities), long-term investment securitiesof the Company and assets held by the corporate division of the Company.
5. “Depreciation and amortization” includes depreciated amount of long-term prepaid expenses.
6. “Capital expenditures” include increase in “Property and equipment, net,” “Intangible assets, net,” and long-term prepaid expense on the
consolidated balance sheet, and increase in “goodwill” and each asset in the acquisition of newly consolidated subsidiary.

49

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the fiscal year ended March 31, 2010

2. Geographic segment information
For the fiscal year ended March 31, 2009

(Millions of yen)
Japan

North
America

OthersTotal

Eliminationor corporate

Consolidated

Net sales(1) Customers¥2,659,114¥1,066¥12,853¥2,673,035¥-¥2,673,035

3,362

-

-

3,362

(3,362)-

Total

2,662,477

1,066

12,853

2,676,398(3,362)

2,673,035

Operating expenses

2,295,801(1,232)

13,5302,308,098

5,815

2,313,914

Operating income (loss)

366,676

2,299

(676)

368,299(9,178)359,121¥3,987,163¥141,933¥154,884¥4,283,981¥102,690¥4,386,672(2) Inter-segment

Identifiable assets

For the fiscal year ended March 31, 2010

(Millions of yen)
Japan

North
America

OthersTotal

Eliminationor corporate

Consolidated

Net sales(1) Customers¥2,754,411¥981¥8,013¥2,763,406¥-¥2,763,406

5,543

-

-

5,543

(5,543)-

Total

2,759,955

981

8,013

2,768,950(5,543)

2,763,406

Operating expenses

2,282,151

1,890

8,638

2,292,679

4,855

2,297,535

Operating income (loss)

477,803

(908)

(624)

476,270(10,399)

465,871¥3,969,669¥134,360¥191,273¥4,295,303¥167,571¥4,462,875(2) Inter-segment

Identifiable assets

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

2. Unallocated operating expenses for the fiscal years ended March 31, 2009 and 2010 in the column “Elimination or corporate,” whichmainly represent expenses of the corporate division of the Company, were ¥9,278 million and ¥10,577 million, respectively.
3. Corporate assets at March 31, 2009 and 2010 in the column “Elimination or corporate” were ¥135,258 million and ¥172,177 million,
respectively. Corporate assets represent mainly surplus operating funds (cash and marketable securities), long-term investment securitiesof the Company and assets held by the corporate division of the Company.
4. 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 ¥3,446 million and credited it to operating expenses for the fiscal year ended March 31, 2009.

3. Overseas sales
Disclosures of overseas sales for the fiscal year ended March 31, 2009 and 2010 were omitted because the total overseas sales were lessthan 10% of total consolidated sales.

50

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the fiscal year ended March 31, 2010

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

As of March 31, 2009

As of March 31, 2010

171,192(77,309)

141,093(67,776)(37,786)
56,096(33,232)
40,084

million yen

47,004(9,836)-Net leased property
Property and equipment - others
Acquisition cost
Accumulated depreciation
Accumulated impairment loss

37,16846,730(11,909)
million yen

17,227(8,424)(1,077)Net leased property
Intangible assets
Acquisition cost
Accumulated depreciation
Accumulated impairment loss
Net leased property
Total
Acquisition cost
Accumulated depreciation
Accumulated impairment loss
Net leased property

7,724
9,086
(4,919)(171)
3,996
244,511(100,489)(39,035)
104,98651

million yen

34,820

million yen

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

4,647

million yen

million yen

9,070(6,669)
(290)
2,110

million yen

million yen

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

million yen

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the fiscal year ended March 31, 2010

Long-term prepaid expenses relating to a lease contract, in which the contract term and payment term are different, as ofMarch 31, 2009 and March 31, 2010 were ¥19,867 million and ¥25,157 million, respectively and are included in “Other
assets” of investments and other assets in the consolidated balance sheets. Current portion of long-term prepaid expenses
related to the lease contract in the amount of ¥714 million and ¥670 million as of March 31, 2009 and March 31, 2010 are
included in “Other current assets” in the consolidated balance sheets.
(2) Obligations under finance lease at the end of each year:
As of March 31, 2009

Due within one year
Due after one year

30,726110,651
Total

Balance of allowance for impairment loss on
leased property

As of March 31, 2010

26,191
79,431

141,378

million yen

105,623

million yen

18,809million yen

10,776

million yen(3) Lease payments, reversal of allowance for impairment loss on leased property, amounts equivalent to depreciation, andinterest expense for each year:
Fiscal year ended

Fiscal year ended

March 31, 2009

41,444

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

March 31, 2010

million yen

36,752 million yen

10,051

8,416

26,76910,721
7,259

23,9608,654
383(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.

2. Non-cancelable operating lease transactions(As a lessee)
The future lease payments under non-cancelable operating leases at the end of each year:
As of March 31, 2009

Due within one year
Due after one year
Total

As of March 31, 2010

21,93022,494

41,12963,05934,64857,143

million yen

million yen(As a lessor)
The future lease receivables under non-cancelable operating leases at the end of each year:
As of March 31, 2009

As of March 31, 2010

Due within one year
Due after one year

1,142

866

Total

2,679

1,537

52

1,005
million yen

1,872

million yen

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the fiscal year ended March 31, 2010

(Income Taxes)
For the fiscal year ended March 31, 2009

For the fiscal year ended March 31, 2010

1. Significant components of deferred tax assets and liabilities

1.

Significant components of deferred tax assets and liabilities(Million yen)

(Million yen)

Deferred tax assets

Deferred tax assets

Loss carryforwards¥127,398

Depreciation / Amortization¥99,676

Depreciation / Amortization
Revaluation of acquired consolidated subsidiaryat the respective fair market value

108,078

Loss carryforwards
Revaluation of acquired consolidated subsidiaryat the respective fair market value

88,229Allowances for doubtful accounts

39,459Allowances for doubtful accounts

39,377

Investment securities

28,330Investment securities

32,106

Allowances for point mileage

17,015

Accounts payable-other and accrued expenses

29,302

Deferred revenue

8,599

Allowances for point mileage

19,211Others72,772Others52,86063,14054,774Gross deferred tax assets

464,793

Gross deferred tax assets

415,538

Less: valuation allowance(201,794)

Less: valuation allowance(174,215)

Total deferred tax assets

262,999

Total deferred tax assets

241,323

Deferred tax liabilities

Deferred tax liabilities

Unrealized gains on other securities(20,660)

Deferred gain on derivatives under hedge accounting
Others

Unrealized gains on other securities(30,504)(16,022)

Deferred gain on derivatives under hedge accounting(10,251)(3,861)Others(4,106)

Total deferred tax liabilities(40,545)

Total deferred tax liabilities(44,862)

Net deferred tax assets¥222,454

Net deferred tax assets¥196,461

2. Reconciliation between the statutory income tax rate2.

and effective income tax rate:
Statutory tax rate

Reconciliation between the statutory income tax rateand effective income tax rate:

40.69 %

Statutory tax rate

(Reconciliation)

40.69 %

(Reconciliation)

Change in valuation allowance(53.54) %Change in valuation allowance(8.64) %Amortization of goodwill

22.81

Amortization of goodwill

8.40

Equity in losses of affiliated companies

2.16

Consolidation adjustments resulting from gain on saleof investments in consolidated subsidiaries

7.26

Tax rate differential

5.38

Equity in losses of affiliated companies

1.00

Others0.86

Others

1.26

Income tax rate per statements of income

18.36 %

Income tax rate per statements of income

53

49.97 %

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the fiscal year ended March 31, 2010

(Financial Instruments)
Fiscal year ended March 31, 2010
(Additional information)“Accounting Standard for Financial Instruments” (ASBJ Statement No. 10, March 10, 2008) and its “Implementation Guidance on
Disclosures about Fair Value of Financial Instruments” (ASBJ Guidance No. 19 Guidance, March 10, 2008) were applied for theyear ended March 31, 2010.
1. Conditions of Financial instruments(1) Management policy
The Group utilizes diversified financing methods of raising funds through both indirect financing, such as bank loans, anddirect financing, such as issuance of bonds and commercial paper and borrowings through securitization, taking market
conditions and current/non-current debts ratio into consideration. The Group makes short-term deposits for fund management
purposes. The Group also utilizes derivative financial instruments to hedge various risks as described in detail below and does
not enter into derivatives for trading or speculative purposes.
(2) Financial instruments, risks, and risk management
The notes and accounts receivable-trade are exposed to credit risk of customers. To minimize the credit risk, the Group
performs due date controls and balance controls for each customer in accordance with internal customer credit management
rules, and regularly screens major customers’ credit status. For credit risk associated with installment sales receivables ofmobile handsets, SOFTBANK MOBILE screens customers’ credit in accordance with internal screening standards for new
subscriber contracts as well as refers to an external institution for customers' credit status.
Marketable and investment securities are exposed to stock market fluctuation risk and foreign currency exchange risk. For
those risks, the Group is continuously monitoring investees’ financial condition, stock market fluctuation, and foreign currency
exchange risk. The Group enters into a variable share prepaid forward contract (collar transaction) utilizing its shares ofYahoo! Inc. The purpose of this collar transaction is to hedge the variability of cash flows associated with the future market
price of the underlying security, which will be used for the settlement of loans at their maturity.
Maturities of accounts payable-trade and accounts payable-other are mostly within one year. Loan payables with variableinterest rate are exposed to interest rate risk, and interest rate swaps are used for certain loan payables in order to hedge this risk.
Corporate bonds are mainly issued by the Company and corporate bonds denominated in foreign currency are exposed toforeign currency exchange risk. Foreign exchange forward contracts are used to hedge this risk.
In order to hedge the cash flow fluctuation risk associated with the future market price of underlying securities for sale, interest
rate risk associated with financial assets and liabilities, and foreign currency exchange risk associated with assets and liabilities
denominated in foreign currencies, derivative transactions such as a collar transaction, interest rate swap transactions, andforeign exchange forward contracts are used.
Hedge accounting is applied for certain derivative transactions. Hedging instruments and hedged items, hedging policy, andeffectiveness of hedge transactions are described in “Basis of Presentation of Consolidated Financial Statements 4. Summary ofsignificant accounting policies (5) Accounting for significant hedge transactions.” Derivative transactions entered into by theCompany are implemented and controlled based on the Company’s internal polices and are limited to the extent of actual
demand. Balance and fair value of derivative transactions are reported regularly to the board of directors. Consolidated
subsidiaries also manage the derivative transactions based on the Company’s policies.
(3) Supplemental explanation regarding fair value of financial instruments
Fair value of financial instruments are measured based on the quoted market price, if available, or reasonably assessed value if aquoted market price is not available. Fair value of financial instruments which quoted market price is not available iscalculated based on certain assumptions, and the fair value might differ if different assumptions are used. In addition, thecontract amount of the derivative transactions described below in “Notes Derivative Transactions” does not represent themarket risk of the derivative transactions.

54

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the fiscal year ended March 31, 2010

2. Fair value of financial instruments
The carrying amounts on the consolidated balance sheets, fair value, and differences as of March 31, 2010 are as follows.
In addition, financial instruments, of which it is extremely difficult to measure the fair value, are not included. (Please see “Notes 2.
Financial instruments of which the fair value is extremely difficult to measure”)(Millions of yen)

As of March 31, 2010
Carrying Amount

Fair value

Differences

Assets(1) Cash and deposit¥690,053¥690,053¥-(2) Notes and accounts receivable-trade816,550

Allowance for doubtful accounts*1(32,801)

Notes and accounts receivable-trade, net

783,748783,748-[1]Held-to-maturity debt securities

1,499

1,344

(155)

[2]Investments in unconsolidated subsidiaries
and affiliated companies[3]Other securities

8,639

19,274

10,635(3) Marketable securities and investment securities

148,777

148,777-

1,632,718

1,643,198

10,480(1) Accounts payable-trade158,942

158,942-(2) Short-term borrowings

437,960

437,960-(3) Current portion of corporate bonds

54,40054,400-(4) Accounts payable-other and accrued expenses

451,408

451,408-(5) Income taxes payable

100,483

100,483-(6) Current portion of lease obligations

109,768

109,768-(7) Corporate bonds

448,523

488,877

40,353(8) Long-term debt

1,281,586

1,364,076

82,490(9) Lease obligations

224,484

224,922438

3,267,557

3,390,840

123,282[1]Hedge accounting is not applied

1,324

1,324

-

[2]Hedge accounting is applied

25,70125,701-

Total¥27,025¥27,025¥-

Total
Liabilities

Total
Derivative transactions*2

Notes:*1. Allowance for doubtful accounts associated with notes and accounts receivable-trade are deducted.
*2. Derivative assets and liabilities are on net basis.

55

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the fiscal year ended March 31, 2010

Notes 1. Fair value measurement of financial instruments
Assets(1) Cash and deposits
The carrying amount approximates fair value because of the short maturity of these instruments.
(2) Notes and accounts receivable-trade
The carrying amount of installment sales receivables approximates fair value, which is based on the present value of future
cash flows through maturity discounted using an estimated credit-risk-adjusted interest rate. The carrying amount of notes
and accounts receivable-trade other than installment sales receivables approximates fair value because of the short maturityof these instruments.
(3) Marketable and investment securities
The fair value of equity securities equals quoted market price, if available. The fair value of debt securities equals quoted
market price or provided price by financial institutions. The investment securities held by certain subsidiaries in the UnitedStates of America which apply ASC 946 are carried at fair value (Please see “5. Investment securities evaluated at fair value
under the provisions set forth in Financial Services – Investment Companies of the FASB Accounting Standards
Codification”). Marketable and investment securities based on holding purpose are described in “Notes Investment in Debt
and Equity Securities.”
Liabilities(1) Accounts payable-trade, (4) Accounts payable-other, and (5) Income taxes payable
The carrying amount approximates fair value because of the short maturity of these instruments.
(2) Short-term borrowings
The carrying amount of the current portion of long-term debt approximates fair value since the carrying amount was
equivalent to the present value of future cash flows discounted using the current borrowing rate for similar debt of acomparable maturity. Borrowings other than the current portion of long-term debt, the carrying amount approximates fairvalue because of the short maturity of these instruments.
(3) Current portion of corporate bonds
The carrying amount approximates fair value because the carrying amount was equivalent to the quoted market price.
(6) Current portion of lease obligations
The carrying amount approximates fair value since the carrying amount was equivalent to the present value of future cash
flows discounted using the current interest rate for similar lease contracts of comparable maturities and contract conditions.
(7) Corporate bonds
Fair value equals the quoted market price or the price provided by a financial institution. For certain corporate bonds
denominated in foreign currencies, for which foreign exchange forward contracts are used to hedge the foreign currency
fluctuations, fair value includes fair value of the derivative financial instrument.
(8) Long-term debt
Fair value of long-term debts is based on the price provided by a financial institution or the present value of future cash flows
discounted using the current borrowing rate for similar debt of a comparable maturity.
(9) Lease obligations
Fair value equals to the present value of future cash flows discounted using the current interest rate for similar lease contractsof comparable maturities and contract conditions.
Derivative Transactions
Contract amount, fair value, unrealized gain or loss, and others are described in “Notes Derivative Transactions.”

56

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the fiscal year ended March 31, 2010

Notes 2. Financial instruments of which the fair value is extremely difficult to measure.
(Millions of yen)Classification
Unlisted investment securities of unconsolidated subsidiaries
and affiliated companies
Unlisted equity securities

Carrying Amounts¥140,386
68,241

Investments in partnerships

6,827

Total

¥215,454

Above are not included in “(3) Marketable and investment securities” because there is no market value and it is extremely
difficult to measure the fair value.

Notes 3. The redemption schedule for money claim and held-to-maturity debt securities with maturity date subsequent tothe consolidated balance sheets date.
(Millions of yen)Classification

April 1, 2010 toApril 1, 2011 toApril 1, 2015 toApril 1, 2020

March 31, 2011

March 31, 2015

March 31, 2020

and thereafter

Cash and deposits¥690,053

¥-

¥-

¥-

Notes and accounts receivable-trade693,406

123,144

-

-

800

100

-

600

Marketable and investment securities
Held-to-maturity debt securities(corporate bonds)
Other securities with maturity date
(corporate bonds)
Other securities with maturity date (other)

0503

27,000

-

300

-

-

-

Sub-total

1,100

603

27,000600¥1,384,559¥123,747¥27,000

¥600

Total

Notes 4. The redemption schedule for corporate bonds, long-term debt, and other interest bearing debt with maturity
date subsequent to the consolidated balance sheets date.
(Millions of yen)

April 1, 2010 toApril 1, 2011 toApril 1, 2012 toApril 1, 2013 toMarch 31, 2011

March 31, 2012

March 31, 2013

March 31, 2014

¥54,400¥128,500¥144,998¥97,625

Long-term debt

229,653

184,804

136,691

250,200

Lease obligations

109,768

79,63977,552

39,726¥393,821¥392,943¥359,241¥387,552

April 1, 2014 toApril 1, 2015 toApril 1, 2020

March 31, 2015

March 31, 2020

and thereafterClassification
Corporate bonds

Total

Classification
Corporate bonds¥44,900¥32,500¥-

Long-term debt

232,581

477,308-

Lease obligations

24,7152,850-¥302,197¥512,658

¥-

Total

57

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the fiscal year ended March 31, 2010

(Investment in Debt and Equity Securities)
As of March 31, 2009
1. Marketable and investment securities at fair value(Millions of yen)

As of March 31, 2009Classification

Investment Cost

Carrying Amount¥16,640¥71,766

Differences

Carrying Amount > Investment Cost
(1)Equity securities(2)Others¥55,12558

59

1

16,69871,82555,126(1)Equity securities

8,629

8,023

(605)

(2)Others

2,866

2,611

(254)

Sub-total

11,496

10,635

(860)

Total

¥28,194¥82,461¥54,266

Sub-total
Carrying Amount≦Investment Cost

2. Marketable and investment securities sold during the fiscal year ended March 31, 2009
(Millions of yen)

Securities

Sales Price(1)Equity securities

Gain on sales¥4,851

Loss on sales¥2,659¥114(2)Debt securities

225

-

-

(3)Others

4,986

6

193

¥10,062¥2,666

¥307

Total

3. Carrying amounts of the unlisted investment securities(Millions of yen)Classification and securities

Carrying Amounts(1)Held-to-maturity debt securities
Unlisted foreign debt securities¥700

Unlisted debt securities

299(2)Available-for-sale and other securities
Unlisted equity securities

80,747

Investments in limited partnerships

6,732

Others223

Total¥88,702

4. The redemption schedule for held-to-maturity debt securities and available-for-sale and other securities with maturity
date subsequent to the consolidated balance sheet date(Millions of yen)Classification

April 1, 2009 to

April 1, 2010 toApril 1, 2014 toApril 1, 2019

March 31, 2010

March 31, 2014

March 31, 2019

and thereafter

Debt securities
Corporate bonds

¥100

¥300

¥-

¥600

Local bonds

79

134

-

-

¥179

¥434

¥-

¥600

Total

58

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the fiscal year ended March 31, 2010

5.

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.
Proceeds from sales and the carrying amounts of the investment securities at fair value recorded in the consolidated balance
sheets at March 31, 2009 are as follows:
As of March 31, 2009
3,627 million yen
18,064 million yen

Proceeds from sales:
Carrying amounts of investment securities at fair value :Regarding net changes in fair value of the investment securities and gain on sale of the investment securities, please see “Notes
Consolidated Statements of Income 2. Unrealized appreciation or loss on valuation of investments and gain or loss on sale ofinvestments at subsidiaries in the United States of America, net.”

As of March 31, 2010
1. Held-to-maturity debt securities(Millions of yen)Classification

As of March 31, 2010
Carrying Amount

Fair value

Differences

Fair value > Carrying AmountCorporate bonds

¥199

¥199

¥0

Corporate bonds

1,300

1,144

(155)

Total

¥1,499¥1,344¥(155)

Fair value≦Carrying Amount

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

As of March 31, 2010
Carrying Amount

Investment Cost

Differences(1)Equity securities¥93,084¥19,014¥74,070(2)Debt securities

28,68026,3972,283(3)Others

2,718

2,359

358

124,483

47,771

76,712(1)Equity securities

8,010

11,337(3,326)(2)Debt securities

276

276

-

(3)Others

690

704

(14)

8,976

12,317(3,340)¥133,460¥60,089¥73,371

Carrying Amount > Investment Cost

Sub-total
Carrying Amount≦Investment Cost

Sub-total
Total

Note: Investment securities held by certain subsidiaries in the United States of America which apply ASC 946 are described in
below “5. Investment securities evaluated at fair value under the provisions set forth in Financial Services– Investment
Companies of the FASB Accounting Standards Codification.”59

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the fiscal year ended March 31, 2010

3. Marketable and investment securities sold during the fiscal year ended March 31, 2010
(Millions of yen)

Securities

Sales Price

Gain on sales

Loss on sales(1)Equity securities¥1,437¥803¥226(2)Others

3,049

56

-

¥4,487

¥860

¥226

Total

Note: Sales price of ¥760 million, gain on sales of ¥580 million, and loss on sales of ¥57 million for financial instruments ofwhich the fair value is extremely difficult to measure are included in the amounts above.
4. Marketable and investment securities impaired
Certain marketable and investment securities are impaired, and valuation loss on investment securities of ¥5,167 million(valuation loss on investment securities, of which the fair value is extremely difficult to measure, of ¥3,183 million is included)
is recorded for the fiscal year ended March 31, 2010.
5. Investment securities evaluated at fair value under the provisions set forth in Financial Services – Investment
Companies of the FASB Accounting Standards Codification
Certain subsidiaries of the Company in the United States of America qualify as investment companies under the provisions set
forth in Financial Services – Investment Companies of the FASB Accounting Standards Codification Topic 946(ASC 946)
and account for investment securities in accordance with ASC 946.
Proceeds from sales and the carrying amounts of the investment securities at fair value recorded in the consolidated balance
sheets as of March 31, 2010 were as follows:

Proceeds from sales:
Carrying amounts of investment securities at fair value :As of March 31, 2010
1,864 million yen
15,316 million yen

Regarding net changes in fair value of the investment securities and gain on sale of the investment securities, please see “Notes
Consolidated Statements of Income 2. Unrealized appreciation or loss on valuation of investments and gain or loss on sale ofinvestments at subsidiaries in the United States of America, net.”

60

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the fiscal year ended March 31, 2010

(Derivative Transactions)
As of March 31, 2009
1. Currency Related(Millions of yen)March 31, 2009
Nature of transaction

Contract amounts
Over 1 year

Fair

Unrealizedvalue

gain(loss)

Forward exchange contracts toOff-market
transactions

・ Purchase U.S. dollars and sell Japanese yen
・ Purchase Euro and sell Japanese yen
Total¥83,589-¥2,929¥2,929

3,637

-

(267)

(267)

¥87,227-¥2,662¥2,662

Notes:
1. Fair value is based on information provided by financial institutions at the end of the fiscal year.
2. Derivative transactions to which the Company applied hedge accounting are excluded.
2. Interest Related
There are no applicable items.
Note: Derivative transactions to which the Company applied hedge accounting are excluded.
3. Securities Related
There are no applicable items.
Note: Derivative transactions to which the Company applied hedge accounting are excluded.
As of March 31, 2010
(1) Derivative transactions to which the Company did not apply hedge accounting
1. Currency Related(Millions of yen)March 31, 2010

Nature of transaction

Contract amounts
Over 1 year

Fair

Unrealizedvalue

gain(loss)

Forward exchange contracts toOff-market
transactions

・ Purchase U.S. dollars and sell Japanese yen
・ Purchase Euro and sell Japanese yen
Total¥81,567-¥1,357¥1,357

657

-

(33)

(33)

¥82,225-¥1,324¥1,324

Note: Fair value is based on information provided by financial institutions at the end of the fiscal year.
2. Interest Related
There are no applicable items.
3. Securities Related
There are no applicable items.

61

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the fiscal year ended March 31, 2010

(2) Derivative transactions to which the Company applied hedge accounting
1. Currency Related(Millions of yen)

Hedge accounting
methodNature of transaction

Hedged items

Contract amount

Fair valueOver 1 year

Forward-exchange contracts:
Purchased option to buy
Deferral hedge

Forecasted transactions for
expenses denominated inforeign currencies
Forecasted transactions for
expenses denominated inforeign currencies

U.S. dollars

accounting
Euro

¥843

¥-

¥43

13

-

(0)

545

-

(Note 3)49,12047,807(Note 3)

¥50,522¥47,807

Forward-exchange contracts:
Purchased option to buy
Alternative method(Note 2)

Accounts payabletrade and otherAccounts payable- trade,and corporate bonds

U.S. dollars
Euro
Total

¥43

Notes:
1. Fair value is based on information provided by financial institutions at the end of the fiscal year.
2. Foreign monetary obligations denominated in foreign currencies for which foreign exchange forward contracts are used tohedge the foreign currency fluctuation are translated at the contracted rate, if the forward contracts qualify for hedge
accounting.
3. For certain accounts payable-trade, accounts payable-other and corporate bonds denominated in foreign currencies forwhich foreign exchange forward contracts are used to hedge the foreign currency fluctuations, fair value of derivative
financial instrument is included in fair value of the accounts payable-trade, accounts payable-other and corporate bonds ashedged items.
2. Interest Related(Millions of yen)

Hedge accounting
methodNature of transaction

Hedged items

Contract amount

Fair valueOver 1 year

Deferral hedge

Interest swap:

accounting

Receiving floating rate
and paying fix rate

Interest for loan

Total

¥15,000¥10,000¥(260)¥15,000¥10,000¥(260)

Note: Fair value is based on information provided by financial institutions at the end of the fiscal year.
3. Securities Related(Millions of yen)

Hedge accounting
methodNature of transaction

Hedged items

Contract amount

Fair valueOver 1 year

Collar transaction:
Deferral hedge
accounting

A variable share prepaid
forward contract
consisting of a purchased
put option and a sold call
optionEquity securities

Total¥105,697¥105,697¥25,918¥105,697¥105,697¥25,918

Note: Fair value is based on information provided by financial institutions at the end of the fiscal year.

62

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the fiscal year ended March 31, 2010

(Per Share Data)
Fiscal year ended

Fiscal year ended

March 31, 2009

March 31, 2010

Shareholders’ equity per share (yen)¥346.11¥434.74

Net income per share - primary (yen)

39.95

89.39

Net income per share – diluted (yen)

38.64

86.39

Basic data for computation of the per share data
1. Net income (in millions of yen)
2. Net income allocated to common stock outstanding(in millions of yen)

Fiscal year ended

Fiscal year ended

March 31, 2009

March 31, 2010

43,172

96,71643,172

96,716--

1,080,700,888

1,081,990,217

1,522

933

75,869,347

48,372,009

3. Amounts not allocated to shareholders(in millions of yen)
4. Weighted average number of common stock outstanding
during each year (unit: shares)
5. Adjustment for net income used to calculate net income per share– diluted (in millions of yen)
6. Increase of common stock used to calculate net income per share– diluted (unit: shares)

Stock acquisition rights
agreement on June 22,2005 in accordance withspecial resolution at generalshareholders’meeting

7. Residual securities which do not dilute net income per share

Stock acquisition rights
agreement on June 22,2005 in accordance withspecial resolution at generalshareholders’meeting(Elision of Disclosure)Notes regarding pension and severance plans, related party transactions, stock options, and business combinations are not disclosed
as they are immaterial.

63

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the fiscal year ended March 31, 2010

5. Others(Change of Board members)(1) Change of Representative
Not applicable(2) Change of other directors
Not applicable64