SOFTBANK CORP.
CONSOLIDATED FINANCIAL REPORTFor the three-month period ended June 30, 2009
Tokyo, July 30, 2009

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

Net sales

Operating income

Ordinary income

Net income

Amount%Amount%Amount%Amount%Three-month period ended
June 30, 2009

¥666,334

2.9¥108,290

27.3¥78,79745.2¥27,383

41.4

Three-month period ended
June 30, 2008

¥647,255-¥85,086-¥54,272-¥19,368-

Net income
per share－basic(yen)

Net income
per share－diluted(yen)Three-month period ended
June 30, 2009¥25.33¥24.45Three-month period ended
June 30, 2008¥17.92¥17.07(2) Financial Condition(Millions of yen; amounts less than one million yen are omitted.)

Total assets

Total equity

Equity ratio (%)

Shareholders' equity
per share (yen)As of June 30, 2009

¥4,327,343¥869,124

9.5¥380.33

As of March 31, 2009

¥4,386,672¥824,798

8.5¥346.11

Note: Shareholders’equity (consolidated)
As of June 30, 2009:
As of March 31, 2009:¥411,631 million¥374,094 million

2. Dividends(Record date)

First quarter

Fiscal year ended
March 31, 2009
Fiscal year ending
March 31, 2010
Fiscal year ending
March 31, 2010
(Forecasted)

Second quarter

Dividends per share
Third quarter

Fourth quarter

Total

(yen)

(yen)

(yen)

(yen)

(yen)

-

0.00

-

2.50

2.50

0.00

-

5.00

5.00

-

Revision of forecasts on the dividends: No1

3.

Forecasts on the consolidated operation results for the fiscal year ending in March 2010 (April 1, 2009 – March 31, 2010)(Percentages are shown as year-on-year changes)(Millions of yen)

Operating income
First-half financial year
Full financial year

¥ -

- (%)

¥420,000

16.9(%)

Revision of forecasts on the consolidated operation results: No
The earning forecasts for interim period ending September 31, 2009 are not disclosed.

4. Others(1) Significant Changes in Scope of Consolidation (Changes in Scope of Consolidation of Specified Subsidiaries):No(2) Application of simple accounting methods or special accounting methods for preparation for the consolidated financial
statements:
No(3) Changes in accounting principles, procedures, disclosure methods, etc., used in the presentation of the consolidated financial
statements (Changes described in “(5) Basis of Presentation of Consolidated Financial Statements”)[1] Changes due to revisions in accounting standards: No[2] Changes other than those in [1]: No(4) Number of shares issued (Common stock)[1] Number of shares issued (including treasury stock):
As of June 30, 2009:
As of March 31, 2009:

1,082,485,878 shares
1,081,023,978 shares[2] Number of treasury stock:
As of June 30, 2009:
As of March 31, 2009:

170,841 shares
169,204 shares[3] Weighted average number of common stock :As of June 30, 2009:
As of June 30, 2008:

1,081,005,310 shares
1,080,540,130 shares* Note to forecasts on the consolidated operating results and another item
The forecast figures are estimated based on the information which the company 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.

2

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the three-month period ended June 30, 2009

Qualitative Information / Financial Statements
1. Qualitative Information of Consolidated Results of Operations(1) Consolidated Results of Operations<<Summary of Results of Operations>>
Net sales¥

666,334 million (2.9% increase year-on-year)

Operating income¥

108,290 million (27.3% increase year-on-year)

Ordinary income¥

78,797 million(45.2% increase year-on-year)

Net income¥

27,383 million(41.4% increase year-on-year)<Overview of results for the period ended June 30, 2009 (three-month period from April 1, 2009 to June 30,2009)>The SOFTBANK Group (hereafter ‘the Group’) operates its businesses utilizing intra-group synergies, as acomprehensive Internet company providing telecommunications infrastructure, portal, and content and services.
In terms of finances, SOFTBANK CORP. (hereafter ‘the Company’) has reinforced its cash-flow-oriented
management, and the period ended June 30, 2009 (April 1, 2009 to June 30, 2009; hereafter ‘this period’) marked asolid start toward the achievement of its targets of 1) the creation of around ¥1 trillion in free cash flow*1 over the
next three years (year ending March 2010 to year ending March 2012) and 2) reducing net interest-bearing debt*2
by half over the next three years and to zero in six years (year ending March 2010 to year ending March 2015).
The Group’s operations are based on the two core strategies of being the ‘No. 1 mobile Internet company’ andthe ‘No. 1 Internet company in Asia.’ Major initiatives launched during this period included the release ofnumerous MOBILE WIDGET -compatible handsets as new models for the summer and the full rollout of services
that make it easy to enjoy original video content by SOFTBANK MOBILE Corp. (hereafter ‘SOFTBANKMOBILE’), the core company of the Mobile Communications segment, as SOFTBANK MOBILE strove to further
popularize mobile content.

The Company’s Asian business saw a series of tie-up announcements with domestic

Japanese companies by Alibaba.com Japan Co., Ltd., the Japanese entity (a joint venture with the Alibaba Groupand a subsidiary of the Company) of Alibaba.com Limited, the operator of Alibaba.com which is one of the world’s
largest B2B e-commerce sites.

The service rollout was accelerated for the expansion of the sales channels forJapanese companies to connect Japanese products with the Chinese market through the Internet.

The Company

further strengthened its Asian business in June with a comprehensive tie-up in the area of video content such as TV
programs and entertainment-related businesses with Shanghai Media Group, one of the most influential mediagroups in China.
In addition, the Group’s three telecommunications companies, SOFTBANK MOBILE, SOFTBANK BB Corp.
(hereafter ‘SOFTBANK BB’), and SOFTBANK TELECOM Corp. (hereafter ‘SOFTBANK TELECOM’) unified
their service brand logo in April 2009 to further enhance Group synergies.
As a result of these efforts, the Group’s net sales for this period totaled ¥666,334 million, with ¥108,290
million in operating income, ¥78,797 million in ordinary income, and ¥27,383 million in net income.
(Notes) *1 Cash flows from operating activities + cash flows from investing activities.
*2 Interest-bearing debt - cash position
Interest-bearing debt = Short-term borrowings + commercial paper + current portion of corporate bonds + corporate
bonds. Lease obligations are excluded.
Cash position = cash and cash deposits, marketable securities under current assets

3

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the three-month period ended June 30, 2009

<Quarterly Results>(Millions of yen)
Fiscal year ended March 31, 2009

Fiscal year ending March 31, 2010

Q1

Q2

Q3

Q4

Q1

Net sales

647,255

681,742653,264

690,772

666,334---

Operatingincome85,086

94,913

94,69084,430108,290---

54,272

63,04357,17851,167

78,797---

19,36821,747

17,066(15,009)

27,383---

Ordinary
incomeNet income(loss)Q2

Q3

Q4(a) Net Sales
Net sales totaled ¥666,334 million, an increase of ¥19,078 million (2.9%) compared with the corresponding
three-month period in the previous fiscal year (the three-month period ended June 30, 2008 hereafter‘year-on-year’), primarily from ¥34,718 million in sales growth at the Mobile Communications segment.

The

increase at the Mobile Communications segment was mainly due to growth in telecom service revenue and fromsales of mobile phone products, etc. at SOFTBANK MOBILE.
Net sales at the e-Commerce segment decreased by ¥8,245 million, mainly because of reduced demand in thecorporate market along with the economic downturn, and net sales at the Broadband Infrastructure segment
decreased by ¥6,321 million as a result of the decline in the cumulative number of Yahoo! BB ADSL lines.
(b) Cost of Sales
Cost of sales declined ¥17,720 million (5.3%) year-on-year to ¥317,606 million.

This was mainly due to a decline

in cost of goods purchased at the e-Commerce segment, and lower depreciation and other costs at the Broadband
Infrastructure segment as fully depreciated assets increased.

Although the Mobile Communications segment had

higher handset shipments, the cost of goods sold for handsets was roughly flat year-on-year due to lower inventory
write-downs as a result of efficient inventory management in this period.
(c) Selling, General and Administrative Expenses
Selling, general and administrative expenses came to ¥240,437 million, for a ¥13,594 million (6.0%) year-on-yearincrease.

This was mainly due to higher sales commissions and sales promotion expenses while expenses related

to doubtful accounts declined.
The increase in sales commissions and sales promotion expenses came primarily from increased mobile
handset sales volume and an increase in the unit price of sales commissions for agents at the Mobile
Communications segment.

The decline in doubtful account-related expenses was the result of stricter screening of

new customers at the time of application for a contract and enhanced collection of receivables.
(d) Operating Income
Operating income rose ¥23,203 million (27.3%) year-on-year, to ¥108,290 million, and exceeded ¥100 billion for
the first time on a quarterly basis.

4

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the three-month period ended June 30, 2009(e) Non-operating Income
Non-operating income was ¥2,220 million, an increase of ¥195 million (9.7%) year-on-year. Interest income
declined by ¥243 million, while foreign exchange income and other non-operating income increased by ¥272
million and ¥165 million, respectively.
(f) Non-operating Expenses
Non-operating expenses came to ¥31,713 million, a decrease of ¥1,125 million (3.4%) year-on-year.
expenses were down ¥912 million year-on-year.

Interest

The ¥632 million equity in loss of affiliated companies was ¥973

million smaller year-on-year, primarily from the improved performance of investment funds accounted for by theequity method.
(g) Ordinary Income
Ordinary income came to ¥78,797 million, a ¥24,525 million (45.2%) year-on-year increase.
(h) Special Income
Special income totaled ¥2,408 million, the primary components of which were ¥866 million on unrealized
appreciation on investments and loss on sale of investments at subsidiaries in the U.S., net, ¥789 million dilution
gain from changes in equity interest, and a ¥532 million gain from the sale of investment securities.
(i) Special Loss
Special loss came to ¥2,012 million, and included a ¥924 million valuation loss on investment securities andimpairment losses of ¥797 million.
(j) Income Taxes and Others
Current income taxes were ¥19,856 million, deferred income taxes were ¥21,189 million, and ¥10,763 million wasrecorded as minority interests in net income.
(k) Net Income for the Period
Net income for the period came to ¥27,383 million, a ¥8,015 million (41.4%) year-on-year increase.

5

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the three-month period ended June 30, 2009

(2) Results by Business Segment(a) Mobile Communications<<Summary of Segment Results>>
Net sales¥ 407,304 million( 9.3% increase year-on-year)

Operating income¥ 60,260 million( 36.1% increase year-on-year)

Net subscriber additions totaled 323,300 for the period.
No. 1 in monthly net additions for 26 consecutive months since May 2007.
Total number of subscribers at the end of the period reached 20.95 million, of which 19.45 million were 3G
subscribers.
<Analysis of Results>
Net sales were ¥407,304 million, up ¥34,718 million (9.3%) year-on-year. The segment achieved a significant
increase in operating income of ¥15,986 million (36.1%) year-on-year to ¥60,260 million.

With steady subscriber

growth at the core company SOFTBANK MOBILE, telecom service revenue rose, and combined with increasedhandset sales volume this resulted in sales of handsets growth.

The growth in handset sales volume primarilyreflected upgrade purchases by the customers who had purchased handsets under the installment sales method.
Although an increase in both handset sales volume and commission per unit paid to sales agents boosted salescommissions, the increase in operating income came from a decline in expenses related to doubtful accounts as aresult of stricter credit screening of customers at the time of application for a new subscription and continuous
efforts to reduce costs, including reductions in consignment fees and telecommunication equipment usage fees.
<Quarterly Results>(Millions of yen)
Fiscal year ended March 31, 2009
Net sales
OperatingincomeFiscal year ending March 31, 2010

Q1

Q2

Q3

Q4

Q1

372,585

401,375

376,861

412,068

407,304

Q2
—

Q3
—

Q4
—

44,27343,89046,74736,47860,260———<Number of Mobile Phone Subscribers>
Net subscriber additions (new subscribers minus cancellations) at SOFTBANK MOBILE for the period totaled
323,300; maintaining SOFTBANK MOBILE’s top position in monthly net additions for the 26 consecutive months
since May 2007.

The number of SOFTBANK MOBILE subscribers totaled 20,956,200*3 as of the end of theperiod, of which 3G subscribers totaled 19,455,000.
the previous fiscal year end, to 19.3%.

Cumulative subscriber share*4 rose 0.9 percentage point fromSOFTBANK MOBILE continues to promote the migration to 3G inadvance of the scheduled termination of its 2G service on March 31, 2010. As of June 30, 2009, the number of2G subscribers totaled 1,501,200, of which 878,000 were postpaid subscribers and 623,200 were prepaid
subscribers.
（Notes） *3 The total number of subscribers for SOFTBANK MOBILE includes communication module service subscribers.
number of communication module service subscribers at the end of the period was 70,100.
*4 Calculated by the Company based on Telecommunications Carriers Association statistical data.

6

TheSOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the three-month period ended June 30, 2009

(Thousands of lines)
Fiscal year ended March 31, 2009
Q1

Q2

Fiscal year ending March 31, 2010

Q3

Q4

Q1

Q2

Q3

Q4

Net additions

525.5

521.4

366.6

633.1

323.3

—

—

—

Total

19,111.7

19,633.2

19,999.8

20,632.9

20,956.2———<ARPU and Average Acquisition Commission per User>
ARPU*5 for the period was ¥4,030, a significant improvement compared with the last quarter of the previous fiscal
year.

This increase was mainly the result of continued growth in data ARPU, the absence of the previous period’s

one-time factors including access charge tariff revisions between carriers, and a smaller negative impact of theMonthly Discounts, a special discount for subscribers to New Super Bonus, on voice ARPU.
The average acquisition commission per user during the period increased by ¥4,800 compared to the lastquarter of the previous fiscal year, and came to ¥50,100.

This was due to the growth in the proportion of handsets

sold at moderate prices and the impact of corporate sales strategies.
（Note） *5 Average Revenue Per User.

(Yen per month)Fiscal year ended March 31, 2009
Q1

Q2

Q3

Fiscal year ending March 31, 2010
Q4

Q1

Q2

Q3

Q4

ARPU

4,180

4,170

4,090

3,830

4,030

—

—

—

(Basic monthly
charge + voice)

2,530

2,460

2,300

2,020

2,150

—

—

—

(Data)

1,650

1,710

1,790

1,820

1,880

—

—

—

<Churn Rate and Upgrade Rate>
The churn rate for the period was 1.05%, a 0.08 percentage point improvement from the previous fiscal year end.
The upgrade rate decreased by 0.25 percentage points from the previous fiscal year end, to 1.73%.
(% per month)Fiscal year ended March 31, 2009
Q1

Q2

Q3

Q4

Churn rate

0.98

0.98

0.91

*6

0.72

0.76

Upgrade rate

1.27

1.91

(3G only)

Fiscal year ending March 31, 2010
Q1

Q2

Q3

Q4

1.13

1.05

—

—

—

0.69

0.90

0.87

—

—

—

1.67

1.98

1.73

—

—

—

（Note） *6 Excludes 3G Prepaid Service.

7

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the three-month period ended June 30, 2009

<New Models Released during the Period>
SOFTBANK MOBILE announced the release of 19 summer models in 61 colors—a company record—in May
2009.

Eight of these models as well as the ‘iPhoneTM 3GS*7’, for a total of nine, were released during the period.

Of these nine models, four—including the ‘AQUOS SHOT SoftBank 933SH ＊8’ and ‘SoftBank 930N’—are
MOBILE WIDGET-compatible, as SOFTBANK MOBILE continued to popularize this feature.

A new way ofenjoying the mobile Internet was also introduced in June with the release of the digital photo frame ‘PhotoVision
SoftBank HW001’, which has telecommunication functionality for the easy enjoyment of photos sent from
SoftBank mobile phones etc.
（Notes） *7 iPhone is a trademark of Apple Inc. The trademark ‘iPhone’ is used with a license from Aiphone K.K.
*8 AQUOS and AQUOS SHOT are trademarks or registered trademarks of Sharp Corporation.

<New Content Services Launched during the Period>
SOFTBANK MOBILE aims to further popularize ‘mobile content,’ and strives to expand easy-to-use mobile
content and related services.

May 2009 saw the full-fledged release of ‘Simple Select Video,’ which makes it easy

to enjoy the ‘S-1 BATTLE’ as well as baseball, soccer and entertainment news content.

‘EasyAccess Music,’launched in June, lets users enjoy the latest music information content in video form.
(b) Broadband Infrastructure<<Summary of Segment Results>>
Net sales¥53,806 million(10.5％ decrease year-on-year)

Operating income¥13,903 million(32.7％ increase year-on-year)

Total installed lines for Yahoo! BB ADSL:

4,158,000 (as of period end)

Increased the operating margin by reducing sales related expenses etc.
<Analysis of Results>
Net sales totaled ¥53,806 million, which was down ¥6,321 million (10.5％) year-on-year.
¥3,427 million year-on-year (32.7％) to ¥13,903 million.

Operating income rose

Although revenue from the ADSL business of corecompany SOFTBANK BB is trending lower on a decline in number of lines installed, the trend of profit growthcontinues because of a decrease in acquisition incentives and other sales related expenses, lower depreciation fortelecommunication equipments, and lower leasing expenses, in combination with cost reduction initiatives.
<Quarterly Results>(Millions of yen)
Fiscal year ended March 31, 2009

Fiscal year ending March 31, 2010

Q1

Q2

Q3

Q4

Q1

Net sales

60,12759,91158,37656,78453,806---

Operatingincome10,475

11,78914,341

10,646

13,903

-

-

-

8

Q2

Q3

Q4

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the three-month period ended June 30, 2009

<Overview of Operations>
The number of lines installed for Yahoo! BB ADSL, the comprehensive broadband service provided by SOFTBANK
BB, totaled 4,158,000 lines at the end of the period, and ARPU for this period was ¥4,259 on a customer payment
basis.
SOFTBANK BB continued to market the Yahoo! BB White Plan and SoftBank Keitai Set Discount, bothlaunched in the previous fiscal year.

By cross-selling with SOFTBANK MOBILE, SOFTBANK BB is creatingsynergies across the Group, leading to enhanced competitiveness.
(c) Fixed-line Telecommunications<<Summary of Segment Results>>
Net sales¥86,758 million(1.9% decrease year-on-year)

Operating income¥3,493 million(337.6% increase year-on-year)

Total installed lines for OTOKU Line: 1,631,000(as of period end)

As a result of fixed cost reductions and an increase in the number of lines for OTOKU Line, operating income
increased 337.6% year-on-year.
<Analysis of Results>
Net sales were ¥86,758 million, down ¥1,694 million (1.9%) year-on-year. Operating income totaled ¥3,493
million, an increase of ¥2,695 million (337.6%) year-on-year.

Revenue at the core company SOFTBANKTELECOM from the OTOKU Line direct connection fixed-line voice service etc. continued to show steady growth,
but the downward trend in revenue from existing voice services including MY LINE and international telephoneservices continued.

Nevertheless, the segment is showing a trend of profit growth on improved management

efficiency including continued fixed cost reductions, and growth in the number of lines with high profitability likeOTOKU Line and Ether Connect.
SOFTBANK IDC Solutions Corp., which was previously included in the Fixed-line Telecommunications
segment, merged with Yahoo Japan Corporation (hereafter ‘Yahoo Japan’) on March 30, 2009.

As a result, thenet sales and operating income relating to SOFTBANK IDC Solutions Corp. are included in the Internet Culture
segment’s results from this period.

The Fixed-line Telecommunications segment has achieved both an increase in

net sales and operating income year-on-year when SOFTBANK IDC Solutions Corp.’s contributions to the segment
are excluded from the Fixed-line Telecommunications results of the same period of the previous fiscal year.
<Quarterly Results>(Millions of yen)
Fiscal year ended March 31, 2009
Net sales
OperatingincomeFiscal year ending March 31, 2010

Q1

Q2

Q3

Q4

Q1

88,45390,00590,196

94,97786,758

-

-

-

798

4,759

5,777

7,632

3,493

-

-

-

9

Q2

Q3

Q4

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the three-month period ended June 30, 2009

<Overview of Operations>
As the Group’s contact point for corporate marketing of the telecommunication related business, SOFTBANKTELECOM continues to leverage its core OTOKU Line service to expand the base of the corporate business.

The

number of OTOKU Line lines installed is increasing steadily and stood at 1,631,000 as of the end of the period, for
an increase of 189,000 (13.1%) year-on-year.

Corporate customers constituted 78.9% of the total number of lines,

and this figure continues to rise.
SOFTBANK TELECOM will continue to work towards increasing corporate sales of SoftBank mobile phones,
and is developing solutions that make it easy for corporate customers to introduce the iPhone.

Going forward,

SOFTBANK TELECOM will utilize the comprehensive strength of the SOFTBANK Group together withSOFTBANK MOBILE to meet a great variety of needs with cutting-edge, high value-added corporate services.
(d) Internet Culture<<Summary of Segment Results>>
Net sales¥65,156 million(4.5% increase year-on-year)

Operating income¥31,717 million(3.8% increase year-on-year)<Analysis of Results>
Net sales increased by ¥2,829 million (4.5%) year-on-year to ¥65,156 million.

Operating income rose ¥1,174

million (3.8%) year-on-year to ¥31,717 million.
<Quarterly Results>(Millions of yen)
Fiscal year ended March 31, 2009
Net sales
OperatingincomeFiscal year ending March 31, 2010

Q1

Q2

Q3

Q4

Q1

62,326

63,25964,24764,404

65,156

Q2
-

Q3
-

Q4
-

30,54230,64530,87233,03731,717---<Overview of Operations>
In the advertising business of Yahoo Japan, the core company of the segment, there was a large increase inadvertisements submitted online and pay per performance advertising grew, however there was a slight decrease in
net sales due to the downturn in the advertising market.
increase in revenue in the business services.

On the other hand, there was a significant year-on-year

The positive effects of the revision of the Yahoo! Auctions’ store

royalties and effects of the merger with the data center business also contributed in the period.

In the personal

service business as a result of efforts to expand member-exclusive services in the Yahoo! Premium service andenhance the cooperation with external partners the number of ‘Yahoo! Premium’ membership IDs amounted to 7.45
million (an increase of 5.5% year-on-year).

The net sales of this business grew significantly year-on-year with acontribution of the revised membership fee since December 2008.

10

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the three-month period ended June 30, 2009(e) e-Commerce<<Summary of Segment Results>>
Net sales¥54,213 million(13.2％ decrease year-on-year)¥940 million(6.9％ decrease year-on-year)

Operating income<Analysis of Results>

Net sales were ¥54,213 million, which was ¥8,245 million (13.2％) lower year-on-year.

Operating income

declined ¥69 million (6.9％) year-on-year to ¥940 million.
<Quarterly Results>(Millions of yen)
Fiscal year ended March 31, 2009

Fiscal year ending March 31, 2010

Q1

Q2

Q3

Q4

Q1

Net sales

62,45965,52264,70665,49654,213

Q2
-

Q3
-

Q4
-

Operatingincome

1,009

1,737

1,055

833

940

-

-

-

<Overview of Operations>Core company SOFTBANK BB’s Commerce & Service Division made efforts toward the expansion of the productmix and stores handling the SoftBank SELECTION, which provides mobile phone accessories and PC software.
Although SoftBank SELECTION sales increased the deterioration in the market environment caused a decline incorporate sales leading to a decline in net sales.

On the other hand, continuous improvement of operational

efficiency and readjustment of the product mix supported the improvement of the profit margin.

Services such as*9the corporate virtual service and the SAAS/ASP service ‘TEKI-PAKI’ which will contribute to the future revenue
were enhanced.
Looking ahead to the age of cloud computing, this segment will continue to use the SOFTBANK brand inorder to expand the product mix, and progress towards bundled solutions packaged around telecommunication lines
leveraging the Group’s telecommunications-related synergies.
(Note) *9 SaaS: Software as a service
ASP: Application Service Provider

11

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the three-month period ended June 30, 2009(f) Others<Analysis of Results>
Net sales decreased by ¥1,151 million (5.3%) year-on-year to ¥20,667 million.

The operating loss was ¥880

million, compared with the ¥758 million loss in the same period of the previous fiscal year.
This segment includes the results of Technology Services (SOFTBANK TECHNOLOGY CORP.), the Media& Marketing (mainly SOFTBANK Creative Corp. and ITmedia Inc.), the Overseas Funds, and Others (Fukuoka
SOFTBANK HAWKS related operations etc.)<Quarterly Results>(Millions of yen)
Fiscal year ended March 31, 2009
Net sales
Operatingincome (loss)

Fiscal year ending March 31, 2010

Q1

Q2

Q3

Q4

Q1

21,81824,18920,556

21,662

20,667

Q2
-

Q3
-

Q4
-

（758）

3,383

（2,855）

36

(880)

-

-

-

(3) Analysis by Geographical Segment(a) Japan
Net sales increased by ¥20,289 million (3.2%) year-on-year to ¥664,370 million.

Operating income rose ¥23,125

million (26.6%) year-on-year to ¥110,222 million.
(b) North America
Net sales declined by ¥38 million (13.0%) year-on-year to ¥259 million.

The operating loss was ¥315 million,

compared with the loss of ¥286 million in the same period of the previous fiscal year.
(c) Others
Net sales declined by ¥1,197 million (39.9%) year-on-year to ¥1,799 million.
compared with ¥68 million loss in the same period of the previous fiscal year.

12

The operating loss was ¥178 million,

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the three-month period ended June 30, 2009

2. Qualitative Information on Consolidated Financial Position<<Summary of the Consolidated Financial Position>>
Total assets¥ 4,327,343 million( 1.4% decrease year-on-year)

Total liabilities¥ 3,458,219 million(2.9 % decrease year-on-year)¥ 869,124 million( 5.4% increase year-on-year)

EquityCash flows from operating activities¥ 132,087 million provided

Cash flows from investing activities¥ 75,511 million used

Cash flows from financing activities¥ 31,337 million used

Balance of cash and cash equivalents¥ 481,846 million(¥24,202 million increase fromthe end of March 2009)(1) Assets, Liabilities and Equity
Assets, liabilities, and equity at the end of the period were as follows:(a) Current Assets
Current assets decreased by ¥33,024 million (2.2%) from the previous fiscal year end, to ¥1,487,288 million.
Although cash and deposits increased by ¥24,845 million, notes and accounts receivable–trade decreased ¥48,032
million and deferred tax assets declined ¥18,065 million.
The increase in cash and deposits reflects the free cash flow generated by each of the segments, while leaseobligations decreased by ¥18,815 million at SOFTBANK MOBILE etc. and interest-bearing debt declined by ¥8,339
million.

The decrease in notes and accounts receivable–trade was primarily from collecting accounts receivablefrom the previous fiscal year’s year-end shopping season at the Mobile Communications and e-Commerce segments,and from collecting accounts receivable from installment sales at the Mobile Communications segment.

The decline

in deferred tax assets was due to smaller temporary differences caused by decreases in the balances of allowances
related to valuation loss on mobile handset inventories and allowances for doubtful accounts etc. at SOFTBANKMOBILE, and a utilization of loss carryforwards at SOFTBANK BB.

SOFTBANK MOBILE also lowered thedefault rate used for determining allowances for doubtful accounts of installment sales receivables, and as a result thisreduced the allowance by ¥4,636 million.
(b) Fixed Assets
Property and equipment, net, decreased by ¥17,288 million (1.7%) from the previous fiscal year end, to ¥983,657
million.

This decline primarily reflected depreciation and amortization of telecommunication equipment andtelecommunication service lines.
Intangible assets decreased by ¥19,412 million (1.6%) from the previous fiscal year end, to ¥1,202,695 million.
This was mainly due to a decrease in goodwill of ¥15,774 million caused by the regular amortization of SOFTBANKMOBILE, SOFTBANK TELECOM and others’ goodwill, and from amortization of software.
Investments and other assets increased by ¥9,738 million (1.5%) from the previous fiscal year end, to ¥651,719

13

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the three-month period ended June 30, 2009

million.

There was a ¥24,988 million increase in investment securities mainly due to the rise in Yahoo! Inc.’s shareprice, and the impact of the foreign currency exchange resulting in appreciation of the foreign currency-denominatedinvestment securities held.
(c) Current Liabilities
Current liabilities decreased by ¥92,948 million (6.9%) from the previous fiscal year end to ¥1,256,634 million.
Although the portion of corporate bonds maturing within one year increased by ¥20,000 million, there were declinesof ¥60,793 million in accounts payable–other and accrued expenses, ¥34,659 million in short-term borrowings, and¥11,826 million in notes and accounts payable –trade.
The increase in corporate bonds maturing within one year represented the transfer of the 24th Unsecured Straight
Corporate Bond, from the corporate bonds under long-term liabilities.

The decrease in accounts payable–other andaccrued expenses reflected SOFTBANK MOBILE’s payments of agency commissions from the previous fiscal year’s
year-end shopping season and payments of equipment-related payables.

The reduction in short-term borrowings

came from the repayment of borrowings under the credit line facility, and the reduction in notes and accounts payable– trade reflected the repayment of accounts payable-trade at the e-Commerce segment from the previous fiscal year’s
year-end shopping season.
(d) Long-term Liabilities
Long-term liabilities decreased by ¥10,706 million (0.5%) from the previous fiscal year end to ¥2,201,584 million.
Although corporate bonds outstanding increased by ¥37,350 million, long-term borrowings and lease obligations
decreased by ¥33,030 million and ¥20,043 million, respectively.
The increase in corporate bonds outstanding came from the ¥60,000 million 27th Unsecured Straight Corporate
Bond issue, partially offset by the transfer to the short-term account of the 24th Unsecured Straight Corporate Bond
(total of ¥20,000 million) which will mature within one year.
The decrease in long-term debt includes the ¥30,752 million repayment by SOFTBANK MOBILE of the SBM
loan

*10

, and ¥10,000 million in repayments by Yahoo Japan.

The decline in lease obligations is the result oftransferring the current portion of lease obligations related to telecommunication equipment at SOFTBANK MOBILE
to current obligations.
(Note) *10 The acquisition funds for the acquisition of Vodafone K.K. were refinanced in November 2006 via a whole businesssecuritization.

(e) Equity
Equity grew ¥44,326 million (5.4%) from the previous fiscal year end, to ¥869,124 million, on increases of ¥24,576
million in retained earnings, ¥9,489 million in the unrealized gain on available-for-sale securities, and ¥8,712 million
in foreign currency translation adjustments.

On the other hand, deferred gain on hedges declined ¥7,344 million.

The increase in the unrealized gain on available-for-sale securities was primarily from the rise in the share priceof Yahoo! Inc. in the U.S. from the previous fiscal year end.

The increase in foreign currency translation adjustments

came from increases in the value of equity at overseas subsidiaries impacted by the foreign currency exchange
appreciation compared with the previous fiscal year end.

14

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the three-month period ended June 30, 2009

(2) Cash FlowsNet cash provided by operating activities during the period totaled ¥132,087 million (compared with a ¥52,899
million net inflow in the same period of the previous fiscal year), while investing activities used net cash in theamount of ¥75,511 million (compared with a ¥90,769 million net outflow in the same period of the previous fiscal
year), and financing activities used a net ¥31,337 million (compared with a ¥32,254 million net outflow in the same
period of the previous fiscal year). As a result, free cash flow (the combined net cash flows from operating activities
and investing activities) for the period was a positive ¥56,576 million (compared with a ¥37,869 million net outflow
in the same period of the previous fiscal year), achieving a significant increase of ¥94,446 million year-on-year.
Cash and cash equivalents at the end of the period totaled ¥481,846 million, a ¥24,202 million increase from theprevious fiscal year end.
<Trend of Cash Flows>(Millions of yen)
Fiscal year ended March 31, 2009

Fiscal year ending March 31, 2010

Q1

Q2

Q3

Q4

Q1

Cash flows fromoperating activities

52,899124,307

93,561

177,089

132,087———

Cash flows frominvesting activities(90,769)(74,334)(58,016)(43,175)(75,511)———(Reference) free cashflow

(37,869)

49,97235,545

133,91456,576———(32,254)(49,689)(67,564)(60,840)(31,337)———

490,266

419,498

419,186

383,703457,664———

419,498

419,186

383,703457,644481,846———

Cash flows fromfinancing activities
Cash and cash
equivalents,

Q2

Q3

Q4

beginning of period
Cash and cash
equivalents, end of
period(a) Cash Flows from Operating Activities:
Net cash provided by operating activities during the period totaled ¥132,087 million (compared with a ¥52,899
million net inflow in the same period of the previous fiscal year).
Income before income taxes and minority interests for the period totaled ¥79,193 million, while non-cash items
included depreciation and amortization of ¥59,809 million, and amortization of goodwill of ¥15,323 million.

Interms of working capital, receivables–trade declined, having a ¥50,306 million positive impact on the cash flows fromoperating activities, while a decline in accounts payables–trade had a negative impact of ¥11,643 million.
Income taxes paid for the period was ¥19,392 million, a ¥14,017 million decrease year-on-year.

The reason forthe decline in income taxes paid was the fact that Yahoo Japan utilized loss carryforwards assumed from SOFTBANKIDC Solutions Corp. when they merged on March 30, 2009. As a result the amount of income taxes paid by theYahoo Group was limited to ¥3,531 million (¥29,052 million in the same period of the previous fiscal year). Due to
SOFTBANK MOBILE’s payment of local income taxes, which are excluded from BB Mobile Corp.’s consolidated
tax return, the amount of income taxes paid by SOFTBANK MOBILE came to ¥14,583 million (¥106 million in thesame period of the previous fiscal year).

15

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the three-month period ended June 30, 2009(b) Cash Flows from Investing Activities:
Net cash used in investing activities was ¥75,511 million (compared with a ¥90,769 million net outflow in the same
period of the previous fiscal year).
Capital expenditure in the form of purchases of property and equipment and intangibles, mainly related to thetelecommunications segments, totaled ¥76,616 million.

Purchases of marketable and investment securities totaled¥4,132 million, and proceeds from sale of marketable and investment securities came to ¥3,819 million for the period.
As a result, free cash flow for this period was positive at ¥56,576 million, an improvement of ¥94,446 million
year-on-year.
(c) Cash Flows from Financing Activities:
Net cash used in financing activities was ¥31,337 million (compared with a year-on-year ¥32,254 million net outflow
in the same period of the previous fiscal year).
Proceeds from long-term debt totaled ¥80,247 million, and proceeds from issuance of bonds of ¥59,202 million
were recorded.

On the other hand, repayments totaled ¥123,537 million for long-term debt, and the change inshort-term borrowings, net was a ¥23,129 million decrease.

In addition, an outflow of ¥21,856 million for

repayment of lease obligations was recorded.
[Reference](1) Major Investing Activities
There were no major investing activities such as company acquisitions or acquisition of stock in the period.
(2) Major Financing Activities
The major financing activities in the the period were as follows:
Item
Issue bonds

Company Name

Details

Summary

SOFTBANK

Issue of the 27th Unsecured

Issue date: June 11, 2009

CORP.

Straight Corporate Bond

Redemption date: June 10, 2011

(Fukuoka SoftBank

Procured amount: ¥60,000 million

HAWKS Bond)

Interest rate: 5.10%/year
Use: Redemption of bonds and repaymentof borrowings

Securitization ofreceivables

SOFTBANKMOBILE Corp.

Increase or
decrease in debt
(excluding
securitization ofreceivables)

SOFTBANK CORP.

SOFTBANKMOBILE Corp.
Yahoo Japan
Corporation

Procurement of funds
totaling ¥70,247 million
accompanying securitizationof mobile phone installment
sales receivables (recorded
as borrowings)
Decrease ¥30,200 million(net)

Procurement date: June 30, 2009
Redemption method:monthly pass-through repayment
Use: capital investment and repayment offunds raised via the whole businesssecuritization financing scheme

Decrease ¥30,752 million

Repayment of funds raised via the wholebusiness securitization financing scheme

Decrease ¥10,000 million

16

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the three-month period ended June 30, 2009

3. Earnings Forecasts
The Group is forecasting consolidated operating income of ¥420.0 billion and consolidated free cash flow of ¥250.0
billion for the fiscal year ending March 31, 2010.
The Group will endeavor to achieve these forecasts and further improve cash flows through continued activities
to improve earnings, primarily at the Mobile Communications segment where sales have been strong, combined withefficient capital expenditure.
<Earnings Forecasts>

Consolidated operating income
Consolidated free cash flow

(Billions of yen)
Forecast
Fiscal year ending March 31, 2010 (FY2009)
420.0
250.0

Consolidated net sales are greatly influenced by the sales method used by the Company for mobile handsets,
which makes it difficult to forecast business results.

In addition, the Company holds a variety of investment

securities and invests in funds that are vulnerable to the market environment, making it difficult to estimate earnings
under the equity method and the special income/loss, and for this reason, meaningful earnings forecasts forconsolidated ordinary income and consolidated net income cannot be provided at this time.
The Group’s main activities are in the Internet and telecommunications industries, in which the market situation
changes rapidly.

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

future to flexibly respond to changes in the market situation.

This market environment makes it difficult to makeforecasts, therefore the Group does not disclose earnings forecasts for the interim period ending September 30, 2009.

17

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the three-month period ended June 30, 2009

4. The SOFTBANK GroupAs of June 30, 2009 the Group comprises of the Company (pure holding company) and the following nine businesssegments.

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

Consolidated
subsidiaries

Equity method
non-consolidated
subsidiaries andaffiliates

Mobile Communications

6

2

Broadband Infrastructure

6

1

Fixed-line Telecommunications

3-

Internet Culture

19

12

e-Commerce

7

4

Others

69

45

110

64

Business segments

Total

Main business of segment and name of business

Provision of mobile communication services and sale of mobile
phones accompanying the services etc.
(Core company: SOFTBANK MOBILE Corp.)
Provision of ADSL and fiber-optic high-speed Internet connection
service, IP telephony service, and provision of content etc. (Corecompany: SOFTBANK BB Corp.(*11))
Provision of fixed-line telecommunications and data center
service etc.
(Core companies: SOFTBANK TELECOM Corp. (*11))
Internet-based advertising operations, portal business andauction business etc.
(Core company: Yahoo Japan Corporation (*11))
Distribution of PC software and hardware including PCs andperipherals, enterprise solutions, and diversified e-commercebusinesses, including business transaction platforms (B2B)
and consumer-related e-commerce (B2C) etc.
(Core companies: SOFTBANK BB Corp. (*11) 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）*11 SOFTBANK BB Corp., SOFTBANK TELECOM Corp. and Yahoo Japan Corporation are included in as consolidated
subsidiaries in the Broadband Infrastructure, Fixed-line Telecommunications and Internet Culture segments, respectively, while
SOFTBANK BB Corp., SOFTBANK TELECOM Corp. and Yahoo Japan Corporation operate multiple businesses and theiroperating results are allocated to multiple business segments.

［Listed Companies］
The following 5 SOFTBANK subsidiaries are listed on domestic stock exchanges as of June 30, 2009:
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

18

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the three-month period ended June 30, 2009

5. Others(1) Significant Changes in Scope of Consolidation (Changes in Scope of Consolidation of Specified Subsidiaries)
There are no significant changes in scope of consolidation.
(2) Application of simple accounting methods or special accounting methods for preparation for the consolidated financial
statements
There are no applicable items.
(3) Changes in accounting principles, procedures, disclosure methods, etc., used in the presentation of the consolidated
financial statements
There are no applicable items.

19

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the three-month period ended June 30, 2009

6. Consolidated Financial Statements(1) Consolidated Balance Sheets(Millions of yen)
As ofJune 30, 2009

As ofMarch 31, 2009

AmountAmountASSETS
Current assets:
Cash and deposits
Notes and accounts receivable - tradeMarketable securities¥482,799¥457,953

810,052

858,084

4,057

2,917

Merchandise and finished products

42,94242,320

Deferred tax assets

74,95593,021Other current assets
Less:
Allowance for doubtful accounts
Total current assets

116,704

114,874(44,221)(48,858)

1,487,288

1,520,313

Buildings and structures

72,226

71,577

Telecommunications equipment

729,636

738,967

Telecommunications service lines

77,691

79,637

Land

22,57522,576

Construction in progress

30,90637,477

Other

50,62050,710983,657

1,000,946

Goodwill

940,956

956,730

Software222,798

226,131

Other intangibles

38,941

39,245

1,202,695

1,222,108345,091

320,102

154,916

158,228

186,625

200,749(34,913)651,719
2,838,073(37,100)
641,980
2,865,036

1,981

1,322

¥4,327,343¥4,386,672

Fixed assets:
Property and equipment, net:

Total property and equipment
Intangible assets, net:

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

20

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the three-month period ended June 30, 2009

Consolidated Balance Sheets(Millions of yen)
As ofJune 30, 2009

As ofMarch 31, 2009

AmountAmountLIABILITIES AND EQUITYCurrent liabilities:
Accounts payable - trade
Short-term borrowings¥148,513¥160,339

540,873575,532

Commercial paper

2,000

-

Current portion of corporate bonds
Accounts payable - otherand accrued expenses

84,00064,000291,377

352,171

Income taxes payable

21,652

21,363Current portion of lease obligations

89,46988,241Other current liabilities

78,74887,935

Total current liabilities

1,256,634

1,349,583

Corporate bonds

361,916

324,566

Long-term debt

1,403,262

1,436,292

Deferred tax liabilities

30,021

28,795

Liability for retirement benefits

16,023

16,076

Allowance for point mileage

44,461

41,816

Lease obligations

213,270

233,314

Other liabilities

132,627

131,428

Total long-term liabilities

2,201,584

2,212,290

Total liabilities

3,458,219

3,561,873

Common stock

188,734

187,681

Additional paid-in capital

213,052

211,999

Accumulated deficit(26,692)(51,269)

Less: Treasury stock

(217)

(214)

Total shareholders’ equity

374,876

348,197

Unrealized gain on available-for-sale securities

40,82331,334

Deferred gain on derivatives under hedge accounting

17,772

25,117

Foreign currency translation adjustments(21,841)(30,554)

Total valuation and translation adjustments

36,75525,897332

289

Minority interests

457,160

450,414

Total equity

869,124824,798¥4,327,343¥4,386,672

Long-term liabilities:

Equity:Stock acquisition rights

Total liabilities and equity

21

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the three-month period ended June 30, 2009

(2) Consolidated Statements of Income(Millions of yen)Three-month period ended
June 30, 2008

Three-month period ended
June 30, 2009

April 1, 2008 toJune 30, 2008

April 1, 2009 toJune 30, 2009

AmountAmountNet sales
Cost of sales
Gross Profit¥647,255

Selling, general and administrative expenses
Operating income¥666,334

335,326

317,606

311,929

348,727

226,842

240,437

85,086108,290

Interest income
Foreign exchange gain, net

361

118

110

383

Other non-operating income
Non-operating income

1,552

1,718

2,024

2,220

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

28,402

27,490

1,605

632

2,831

3,591

32,83931,713

Ordinary income

54,272

78,797

Gain on sale of investment securities

2,464

532

Dilution gain from changes in equity interest
Unrealized appreciation on investments and loss on saleof investments at subsidiaries in the U.S. , net

2,209

789

-

866

Other special income

609

219

5,283

2,408

1,313

924

840

-

-

797

47

290

2,201

2,012

57,354

79,193Current

11,741

19,856

Deferred

14,533

21,189Total income taxes

26,27541,046

Minority interests in net income

11,71010,763¥19,368¥27,383

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

Net income

22SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the three-month period ended June 30, 2009

(3) Consolidated Statements of Cash Flows(Millions of yen)Three-month period ended
June 30, 2008

Three-month period ended
June 30, 2009

April 1, 2008 toJune 30, 2008

April 1, 2009 toJune 30, 2009

Cash flows from operating activities:
Income before income taxes and minority interests¥57,354¥79,193

Depreciation and amortization

56,99959,809Amortization of goodwill

15,185

15,323Equity in losses of affiliated companies

1,605

632

Dilution gain from changes in equity interest, net(2,209)

(767)

-

797

1,313

924

840

(866)

Foreign exchange gain , net(2,470)
(248)

(420)
(461)

Interest and dividend income

(716)

(278)

Interest expense

28,402

27,490Adjustments for:

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

Changes in operating assets, and liabilities
Decrease in receivables – trade

39,83650,306

Decrease in payables - trade(24,322)(11,643)(58,847)(42,448)

112,722

177,592808

343

Interest paid

(27,221)(26,455)

Income taxes paid

(33,409)(19,392)

52,899132,087

Other, net
Sub-totalInterest and dividends received

Net cash provided by operating activities- Continued -23

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the three-month period ended June 30, 2009

Consolidated Statements of Cash Flows (Continued)(Millions of yen)Three-month period ended
June 30, 2008

Three-month period ended
June 30, 2009

April 1, 2008 toJune 30, 2008

April 1, 2009 toJune 30, 2009

Cash flows from investing activities:
Purchase of property and equipment, and intangibles¥ (71,553)¥ (76,616)

Purchase of marketable and investment securities
Proceeds from sale of marketable and investment securities(17,207)(4,132)

10,225

3,819(17,530)

(40)

5,296

1,457

(90,769)(75,511)

Increase (decrease) in short-term borrowings, net

57,234(23,129)

Increase in commercial paper, net

2,000

2,000

Proceeds from long-term debt

45,34380,247

Repayment of long-term debt

(81,660)(123,537)-

59,202(14,041)(2,647)

175

2,105

511

367

Cash dividends paid

(2,026)(1,957)

Cash dividends paid to minority shareholders(4,086)(4,444)Purchase of treasury stock of consolidated subsidiaries
Proceeds from sale and lease back of equipment newly acquired(33,464)(1)

16,334

2,763

Repayment of lease obligations(17,413)(21,856)

Other, net(1,160)(448)

Net cash used in financing activities(32,254)(31,337)

999

(354)

(69,124)

24,883126

126

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
Exercise of warrants
Proceeds from issuance of shares to minority shareholders

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 period(1,770)(807)

490,266

457,644

Cash and cash equivalents, end of the period¥419,498¥481,846

24

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the three-month period ended June 30, 2009(4) Significant Doubt about Going Concern Assumption
There are no applicable items for the three-month period ended June 30, 2009.

(5) Basis of Presentation of Consolidated Financial Statements(Items descried “Qualitative Information/Financial Statements 5. Others” on page 19 are excluded.)
1. Changes in scope of consolidation(1) Changes in scope of consolidation for the three-month period ended June 30, 2009 are as follows:<Increase>
5 companies<Decrease>
3 companies(2) The number of consolidated subsidiaries after the changes:
110 companies
2. Changes in scope of equity method(1) Changes in scope of equity method are as follows:<Increase>1 companies<Decrease>
11 companies(2) The number of non-consolidated subsidiaries and affiliated companies under the equity method after the changes:
Non-consolidated subsidiaries under the equity method: 5 companies
Affiliated companies under the equity method: 59 companies

25

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the three-month period ended June 30, 2009(6) Notes(Consolidated Balance Sheets)
1. Accumulated depreciation of property and equipment
As of June 30, 2009
995,898

million yen

As of March 31, 2009
966,322

million yen

2. Secured loans(1) Assets pledged as collateral for secured liabilities
Assets pledged as collateral and secured liabilities by consolidated subsidiaries are as follows:
As of June 30, 2009

As of March 31, 2009

Assets pledged as collateral:
Cash and deposits

201,775

212,414

Notes and accounts receivable - trade284,823

312,831

Buildings and structures

12,636

12,774

Telecommunications equipment

259,394

260,509

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

184

189

10,624

10,61779,874

66,86329,31631,999878,629

million yen

As of June 30, 2009

908,201

million yen

As of March 31, 2009

Secured liabilities:
Accounts payable - trade

1,160

1,239

Short-term borrowings

2,892

2,903

Long - term debt

1,287,099

1,255,118

Total

1,259,172

million yen

1,291,242

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 ¥1,154,100 million, as of March 31, 2009 and June 30, 2009, respectively) resulting from theacquisition of SOFTBANK MOBILE, in addition to the assets pledged as collateral above.
(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 were included in“Short-term borrowings” (¥185,669 million and ¥189,182 million, as of March 31, 2009 and June 30 2009,
respectively) and “Long-term debt” (¥36,256 million and ¥42,816 million, as of March 31, 2009 and June 30, 2009,
respectively). The amounts of the senior portion of the securitized installment sales receivables (¥ 221,925 million asof March 31, 2009 and ¥231,999 million as of June 30, 2009, respectively) were included in “Notes and accountreceivable-trade”, along with the subordinated portion held by the SOFTBANK MOBILE. The trustee raised thefunds through asset backed loans based on the receivables.

26

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the three-month period ended June 30, 2009[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* toa SPC (a consolidated subsidiary), and the SPC raised the funds through asset backed loans based on the receivables(¥20,000 million and ¥17,390 million, as of March 31, 2009 and June 30, 2009, respectively) from a financial
institution. Cash proceeds through the asset backed loans are included in the “Short-term borrowings” (¥6,660 and¥6,660 million, as of March 31, 2009 and June 30, 2009, respectively) and “Long-term debt” (¥13,340 million, and¥10,730 million, as of March 31, 2009 and June 30, 2009, respectively).
* 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 June 30, 2009
Short-term borrowings

117,000 million yen

As of March 31, 2009
110,000 million yen

3. Additional entrustment for debt assumption of bonds (As of June 30, 2009)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 June 30, 2009, the long term accounts payable was included in “Other liabilities” of long-term liabilities in the
consolidated balance sheets.
Mizuho Corporate Bank, Ltd and the Company set up a credit line facility contract in order to support the repayments of thebonds issued by SOFTBANK MOBILE.

As of June 30, 2009
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

27

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the three-month period ended June 30, 2009

(Consolidated Statements of Income)
1. Selling, general and administrative expenses
Three-month period ended
June 30, 2008
95,395 million yen

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

9,791

Three-month period ended
June 30, 2009
119,364 million yen
3,608

2. Unrealized appreciation (loss) on valuation of investments and gain (loss) on sale of investments at subsidiaries in the
United States of America, net
Certain subsidiaries of the Company in the United States of America qualify as investment companies under the provisions of“American Institute of Certified Public Accountants Audit and Accounting Guide” investment companies (the AICPA Guide)
and account for investment securities in accordance with the AICPA Guide.
The net changes in the fair value of the investments are recorded as unrealized appreciation (loss) on valuation of investments
and gain (loss) on sale of investments at subsidiaries in the U.S., net and gain (loss) on sale of investments, computed based on
the acquisition cost, is also included in this account. The unrealized appreciation (loss) on valuation of investments and gain
(loss) on sale of investments included in unrealized appreciation (loss) on valuation of investments and gain (loss) on sale ofinvestments at subsidiaries in the U.S., net in the consolidated statements of income are as follows:

Three-month period ended
June 30, 2008
Unrealized appreciation (loss) on valuation of investment
at subsidiaries in the U.S.,net
Gain (loss) on sale of investments
at subsidiaries in the U.S.,net
Total

Three-month period ended
June 30, 2009

(2,256)

1,340

1,416

(473)

(840) million yen

866

million yen

3. Impairment loss
Goodwill at a subsidiary of the Internet culture segment was recorded as an impairment loss of ¥797 million in the consolidated
statements of income since the future cash flows were not expected to be generated.

(Consolidated Statements of Cash Flows)
1. Reconciliation of cash and cash equivalents to the amounts presented in the accompanying consolidated balance sheets
As of June 30, 2008
million yen

As of June 30, 2009

Cash and deposits

419,446

Marketable securities

6,533

4,057

Time deposits with original maturity over three months(1,200)(1,383)

Stocks and bonds with original maturity over three months(5,281)(3,626)

Cash and cash equivalents

419,498

million yen

482,799 million yen

481,846 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.

28

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the three-month period ended June 30, 2009

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

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the three-month period ended June 30, 2009

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

As of June 30, 2009

As of March 31, 2009

171,189(81,728)

171,192(77,309)(37,786)
51,674(37,786)
56,096

million yen

47,004(9,836)-

46,729(10,155)-

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

36,574

million yen

7,029
9,086
(5,361)(171)
3,553
244,062(106,195)(39,035)
98,83130

37,168million yen

17,227(8,424)(1,077)

17,056(8,949)(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

million yen

million yen

7,724

million yen

million yen

9,086(4,919)
(171)
3,996

million yen

million yen

244,511(100,489)(39,035)
104,986

million yen

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the three-month period ended June 30, 2009

Long-term prepaid expenses relating to a lease contract, in which the contract term and payment term are different, as ofMarch 31, 2009 and June 30, 2009 were ¥19,867 million and 21,255 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 ¥714 million as of March 31, 2009 and June 30, 2009 are
included in “Other current assets” in the consolidated balance sheets.
(2) Obligations under finance lease at the end of each period:
As of June 30, 2009

Due within one year
Due after one year

As of March 31, 2009

30,726110,651

29,241
104,184
Total

133,426

million yen

141,378

million yen

Balance of allowance for impairment loss on
leased property

16,638million yen

18,809million yen(3) Lease payments, reversal of allowance for impairment loss on leased property, amounts equivalent to depreciation, andinterest expense for each period:
Three-month period ended

Three-month period ended

June 30, 2008

June 30, 2009

10,638

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

million yen

9,584

1,683

2,171

7,428
2,467

6,137
2,348

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

31

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the three-month period ended June 30, 2009

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

As of June 30, 2009
Investment
Carrying
Differences
Cost
Amount(1)(2)

Equity securities
OthersTotal

24,377
2,819
27,197

95,2902,796
98,08670,912(23)
70,888

As of March 31, 2009
Investment
Carrying
Differences
AmountCost
25,27079,79054,519
2,924
2,671
(253)
28,19482,461
54,266

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

As of June 30, 2009

As of March 31, 2009

Carrying Amounts

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

¥700

¥700

Unlisted debt securities

599

299

Unlisted equity securities

84,41480,747

Investments in limited partnerships

6,722

6,732

Others

1,469

223

Total

¥93,905¥88,702(2)Available-for-sale and other securities

3.

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 investment securities in accordance with the AICPA Guide.
The carrying amounts of the investment securities at fair value recorded in the consolidated balance sheets as of March 31,
2009 and June 30, 2009 were as follows:
As of June 30, 2009
Carrying amounts of investment securities at fair value :17,881 million yen

As of March 31, 2009
Carrying amounts of investment securities at fair value :18,064 million yen

32

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the three-month period ended June 30, 2009

(Per Share Data)
1.

Shareholders’ equity per share
As of

As of

June 30, 2009

March 31, 2009

Shareholders’ equity per share (yen)2.

¥380.33¥346.11

Three-month period ended

Three-month period ended

June 30, 2008

June 30, 2009

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

Net income per share – primary (yen)

17.92

25.33

Net income per share – diluted (yen)

17.07

24.45

Three-month period ended

Three-month period ended

June 30, 2008

June 30, 2009

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

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

33

19,36827,383--19,36827,383

1,080,540

1,081,005

389

240

(10)

(7)

378

233

76,27548,582-

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the three-month period ended June 30, 2009(7) Segment Information
1. Business segment information
For the three-month period ended June 30, 2008
Mobile(Millions of yen)Fixed-line

Broadband

Internet

Elimination
e-Commerce

Others

Total

CultureConsolidated

Communications

Infrastructure

Telecommunications

or Corporate(1) Customers¥370,692¥58,791¥78,128¥61,551¥59,670¥18,420¥647,255¥-¥647,255(2) Inter-segment

1,893

1,336

10,324

774

2,788

3,397

20,515(20,515)-

Total

372,585

60,12788,45362,32662,45921,818

667,771(20,515)647,255

Operating income (loss)

44,273

10,475798

30,542

1,009

(758)

86,341(1,254)85,086

Net sales

For the three-month period ended June 30, 2009
MobileBroadband(Millions of yen)Fixed-line

Internet

Elimination
e-Commerce

Others

Total

CultureConsolidated

Communications

Infrastructure

Telecommunications(1) Customers¥405,095¥52,674¥76,467¥64,131¥51,788¥16,175¥666,334¥-¥666,334(2) Inter-segment

2,209

1,131

10,291

1,024

2,424

4,491

21,572(21,572)-

Total

407,304

53,80686,75865,15654,213

20,667

687,906(21,572)

666,334

Operating income (loss)

60,26013,903

3,493

31,717940(880)

109,435(1,145)108,290

or Corporate

Net sales

Notes:
1. Business segments are categorized primarily based on the nature of business operations, type of services, and similarity of sales channels,
etc. which the SOFTBANK Group uses for its internal management purposes.
2. Regarding the main business segments, please see “Qualitative Information / Financial Statements 4. The SOFTBANK Group” in details
on page 18.

34

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the three-month period ended June 30, 2009

2. Geographic segment information
For the three-month period ended June 30, 2008

(Millions of yen)
North

Japan

OthersAmerica

Elimination

Total

Consolidated

or corporate

Net sales(1) Customers¥643,960¥297¥2,997¥647,255¥-¥647,255

119

-

-

119

(119)

-

Total

644,080

297

2,997

647,375(119)647,255

Operating income (loss)

87,097

(286)

(68)

86,741(1,655)85,086(2) Inter-segment

For the three-month period ended June 30, 2009

(Millions of yen)
North

Japan

OthersAmerica

Elimination

Total

Consolidated

or corporate

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

95

-

-

95

(95)

-

Total

664,370

259

1,799

666,429(95)

666,334

Operating income (loss)

110,222

(315)

(178)

109,729(1,438)108,290(2) Inter-segment

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

3. Overseas sales
Disclosure of overseas sales for the three-month period ended June 30, 2008 and 2009 was omitted because the total overseas sales wereless than 10% of total consolidated sales.

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

35