SOFTBANK CORP.
CONSOLIDATED FINANCIAL REPORTFor the nine-month period ended December 31, 2007
Tokyo, February 7, 2008

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

2.

Operating income

Ordinary income

Net income

Amount%Amount%Amount%Amount%Nine-month period ended
December 31, 2007

¥2,058,765

13.0¥260,188

31.9¥231,998

107.9¥93,196324.9

Nine-month period ended
December 31, 2006

¥1,822,369

124.9¥197,285

606.8¥111,615-¥21,933

23.1

Fiscal year ended
March 31, 2007

¥2,544,219-¥271,065-¥153,423-¥28,815-

Net income
per share - basic(yen)

Net income
per share - diluted(yen)

Nine-month period ended
December 31, 2007¥87.57¥82.34Nine-month period ended
December 31, 2006

¥20.79¥20.25

Fiscal year ended
March 31, 2007¥27.31¥26.62Financial Condition(Millions of yen; amounts less than one million yen are omitted.)

Total assets

Total equity

Equity ratio (%)

Shareholders' equity
per share (yen)As of December 31, 2007

¥4,485,056¥843,669

8.7¥360.59

As of December 31, 2006

¥4,191,853¥695,897

6.4¥253.74

As of March 31, 2007

¥4,310,852¥716,237

6.6¥268.02

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 periods

Nine-month period ended
December 31, 2007

¥57,256¥(273,635)¥301,215¥460,278

Nine-month period ended
December 31, 2006

¥258,332¥(2,028,660)¥1,722,831¥393,423

Fiscal year ended
March 31, 2007

¥311,201¥(2,097,937)¥1,718,384¥377,520

14. Earnings Forecast for the Fiscal Year Ending in March 2008 (April 1, 2007 - March 31, 2008)(Millions of yen; amounts less than one million yen are omitted.)

Fiscal year ending
March 31, 2008

Net sales

Operating income

Ordinary income

Net income

Net income
per share (yen)

¥-

¥-

¥-

¥-

¥-

Due to the introduction of unprecedented new sales and pricing methods in our main telecommunications business, especially in the Mobile
Communications business, forecasting the consolidated business results for the fiscal year ending March 2008 is difficult. A forecast of theconsolidated business results will therefore be announced as soon as a logical estimate can be made.

5. Others
Significant Changes in Scope of Consolidation: None
Accounting Policies(1) Apply simplification of accounting methods: None
(2) Changes in accounting methods from the latest fiscal year: None2

Qualitative Information / Financial Statements

SOFTBANK CORP. CONSOLIDATED FINANCIAL REPORTFor the nine-month period ended December 31, 2007

1. Qualitative Information Relating to the Consolidated Results of Operations<<Summary of the Consolidated Results of Operations>>
Net sales¥2,058,765 million (13.0 % increase year-on-year)

Operating income¥260,188 million (31.9 % increase year-on-year)

Ordinary income¥231,998 million (107.9 % increase year-on-year)

Nine-month net income¥93,196 million (324.9 % increase year-on-year)[Overview of results for the nine-month period ended December 31, 2007]
The SOFTBANK Group (hereinafter ‘the Group’), following its full-fledged entry into the mobile communications
market, has put efforts into its four commitments—3G network enhancement, 3G handset lineup enrichment, mobile
content enhancement, and enhancement of sales structure & branding—and worked to achieve its targets ofincreasing subscriber numbers, expanding market share, and further establishing the SoftBank brand. As a result,
SOFTBANK MOBILE Corp. (hereinafter ‘SOFTBANK MOBILE’) has achieved the highest monthly net additions
in subscribers (new subscribers minus cancellations) in the industry for eight consecutive months since May 2007.
Moreover, under the Mobile Number Portability system, which was introduced in October 2006, the number ofpeople switching from other mobile phone carriers to SOFTBANK MOBILE has exceeded the number switchingfrom SOFTBANK MOBILE to other carriers for nine consecutive months since April 2007.
Supported by the strong performance of the Mobile Communications business, in the nine-month period ended
December 31, 2007 (hereinafter ‘this period’) net sales surpassed the ¥2 trillion level, reaching ¥2,058,765 million.
In addition, ¥260,188 million in operating income, ¥231,998 million in ordinary income, and ¥93,196 million in net
income were recorded, each surpassing the results for the corresponding nine-month period in the previous fiscal year(the nine-month period ended December 31, 2006; hereinafter ‘year-on-year’).
SOFTBANK MOBILE was included in the scope of consolidation from the end of April 2006. Accordingly, theresults for the same period of the previous fiscal year include eight months of SOFTBANK MOBILE’s results.

1. Net sales
In this period, net sales increased by ¥236,396 million, or 13.0 % year-on-year, to ¥2,058,765 million.

This increase

was primarily due to greater sales of handsets accompanying the steady increase of mobile phone subscribers, and thereflection of nine months of results from the Mobile Communications segment from this period. The Mobile
Communications segment recorded net sales of ¥1,220,591 million, an increase of 20.3 % year-on-year.

2. Operating income
In this period, operating income increased by ¥62,903 million, or 31.9 % year-on-year, to ¥260,188 million.

The

Mobile Communications segment recorded operating income of ¥147,980 million, or a 30.3 % year-on-year increase.
Cost of sales in this period increased by ¥80,612 million year-on-year, to ¥1,086,108 million.

Selling, generaland administrative expenses rose by ¥92,880 million year-on-year, to ¥712,467 million. These increases wereprimarily due to the strong performance of the Mobile Communications segment and the reflection of nine months ofresults from this segment from this period.

3

SOFTBANK CORP. CONSOLIDATED FINANCIAL REPORTFor the nine-month period ended December 31, 2007

3. Non-operating income
Non-operating income in this period increased by ¥56,720 million year-on-year, to ¥71,417 million. This wasprincipally the result of a recording of ¥61,570 million in equity in earnings of affiliated companies.
Alibaba.com Limited (hereinafter ‘Alibaba.com’), a subsidiary of SOFTBANK CORP’s (hereinafter ‘theCompany’) equity-method affiliate Alibaba Group Holding Limited (hereinafter ‘Alibaba Group’), was newly listedon the Main Board of the Stock Exchange of Hong Kong Limited on November 6, 2007. Alibaba Group recorded
gain on sale of shares in a subsidiary and dilution gain from changes in equity interest due to the issue of new sharesaccompanying the listing, and also from the sale of shares held in Alibaba.com.

The Group’s share of these gains

totaled ¥57,223 million, which was recorded as equity in earnings of affiliate companies.

4. Non-operating expenses
Non-operating expenses were ¥99,607 million in this period, a decrease of ¥759 million year-on-year. This was
mainly due to an increase of ¥30,033 million in interest expenses year-on-year, however financing-related expenses
totaling ¥28,396 million that were recorded in the third quarter of the previous fiscal year did not occur this period.

5. Special income
Special income in this period totaled ¥31,870 million. Unrealized appreciation on investments and gain on sale ofinvestments at subsidiaries in the U.S., net of ¥17,341 million and gain on sale of investment securities of ¥5,925
million were recorded.

Accompanying the listing of consolidated subsidiaries ITmedia Inc. and Carview

Corporation, ¥3,123 million was recorded as dilution gain from changes in equity interest.

6. Special loss
Special losses in this period totaled ¥46,603 million, including loss on unused telecommunications supplies of¥12,006 million, valuation loss on investment securities of ¥11,760 million, loss on disposal of fixed assets of ¥9,493
million, and impairment loss of ¥8,818 million.
As SOFTBANK TELECOM Corp.’s (hereinafter ‘SOFTBANK TELECOM’) direct connection fixed-line voiceservice, Otoku Line, has seen increasing demand for its digital lines for corporate customers, in this period
SOFTBANK TELECOM recorded loss on unused telecommunications supplies, loss on disposal of fixed assets andimpairment loss on leased assets for part of its analogue telecommunications equipment.

The special losses

accompanying this totaled ¥26,250 million.

7. Income taxes
Current income taxes totaled ¥30,266 million and deferred income taxes amounted to ¥63,875 million.
Current income taxes, primarily for Yahoo Japan Corporation and other subsidiaries, totaled ¥38,311 million, while
income tax payable for SOFTBANK Holdings Inc. was reversed as it became unnecessary to recognize; as a result,current income taxes were credited by ¥8,044 million.

4

SOFTBANK CORP. CONSOLIDATED FINANCIAL REPORTFor the nine-month period ended December 31, 2007

Results by business segment are as follows:[Mobile Communications]<<Summary of Segment Results>>
Net sales¥1,220,591million (a 20.3% increase year-on-year)

Operating income¥147,980 million (a 30.3% increase year-on-year)

No. 1 in net subscriber additions for eight consecutive months
Churn rate was 1.21%, upgrade rate was 2.00%, total ARPU amounted to ¥4,520/month for the third
quarter<Analysis of This Period Results>
Net sales increased by ¥205,803 million, or 20.3% year-on-year, to ¥1,220,591 million.

Operating income increasedby ¥34,439 million year-on-year, or 30.3%, to ¥147,980 million. This increase was primarily due to the reflection ofnine months of results from SOFTBANK MOBILE from this period and to a substantial increase in sales of mobile
handsets accompanying the steady increase in mobile phone subscribers and handset upgrades.

<Results for the Third Quarter>(Millions of yen)
Fiscal year ending March 31,2008

Fiscal year ended March 31,2007
Q1

Q2

Q3

Q4

Q1

Q2

Q3

Sales

232,467

351,991

430,328

427,252

391,668

422,841

406,081

Operatingincome27,29329,341

56,90642,202

43,52850,69153,760<Number of Subscribers>
As of the end of this period, the number of SOFTBANK MOBILE subscribers had reached 17,613,500*1, an increaseof 2.117 million subscribers year-on-year.

Since May 2007, SOFTBANK MOBILE has achieved the highestmonthly net additions in subscribers (new subscribers minus cancellations) in the industry for eight consecutive
months.

Moreover, the number of 3G subscribers reached 12,281,500 as a result, the ratio of 3G subscribers to total

number of subscribers increased to 69.7%.
To further promote the migration to 3G, SOFTBANK MOBILE will stop accepting new contract applications for
its 2G service, including its prepaid service as of March 31, 2008.
(Thousands of lines)
Fiscal year ending March 31,2008

Fiscal year ended March 31,2007
Q1
Net additions
Total

Q2

Q3

Q4

Q1

Q2

Q3

30.3

66.8

189.5

412.0

530.8

612.0

561.0

15,240.2

15,307.0

15,496.5

15,908.5

16,440.5

17,052.5

17,613.5*1. The total number of subscribers for SOFTBANK MOBILE includes communication module service subscribers from thisfiscal year. The number of communication module service subscribers at the end of this period was 1,600.

5

SOFTBANK CORP. CONSOLIDATED FINANCIAL REPORTFor the nine-month period ended December 31, 2007

<Churn Rate and Upgrade Rate>
The churn rate for the third quarter was 1.21%, while the churn rate for 3G subscribers was 0.88%. As a result of
the release of appealing handsets and the enhancement of services, as well as the effect of installment sales forhandsets, the churn rate for 3G subscribers marked a drop below 1 percent.
The upgrade rate for the third quarter was 2.00%, a decrease of 1.02 percentage points compared to the third
quarter of the previous fiscal year when the upgrade rate increased temporarily due to the enhancement of the 3G
handset lineup in response to the Mobile Number Portability launched in October 2006.
(%/month)
Fiscal year ending March 31,2008

Fiscal year ended March 31,2007
Q1

Q2

Q3

Q4

Q1

Q2

Q3

Churn rate

1.50

1.27

1.60

1.63

1.46

1.42

1.21

(3G only)

1.73

1.50

1.66

1.37

1.07

1.05

0.88

Upgrade rate

1.99

2.53

3.02

2.89

2.25

2.67

2.00

<ARPU and Average Acquisition Commission per User>
Total ARPU*2 for the third quarter was ¥4,520 per month. ARPU decreased by ¥1,040 compared to the third quarterof the previous fiscal year.

This was due to the effect of the steady growth in the number of subscribers to White

Plan, which has a basic monthly charge of ¥980 (including tax) and exceeded 10 million subscribers during
December 2007, as well as to the special discount for subscribers to New Super Bonus plan. However, data ARPU
increased by ¥160 compared to the third quarter of the previous fiscal year, to ¥1,490, and constituted 33.0% of total
ARPU.
Average acquisition commission per user for the third quarter was ¥33,900.
（Yen per month）
Fiscal year ending March 31,2008

Fiscal year ended March 31,2007
Q1

Q2

Q3

Q4

Q1

Q2

Q3

Total

5,590

5,700

5,560

5,210

5,000

4,800

4,520

(Voice)

4,230

4,320

4,230

3,830

3,590

3,340

3,040

(Data)

1,350

1,380

1,330

1,380

1,410

1,470

1,490

*2. Average Revenue Per User

6

SOFTBANK CORP. CONSOLIDATED FINANCIAL REPORTFor the nine-month period ended December 31, 2007<<Summary of Efforts Made Concerning Key Challenges>>
10 new handsets in 49 colors announced for winter 2007 sales period
Search result display function on Yahoo! Keitai significantly enhanced
White Plan applications exceeded 10 million<Handset Lineup for Winter 2007 Sales Period>
Ten new handsets in 49 colors, revolving around the keyword PREMIUM, were announced in October as the lineup
for winter 2007 sales period, and were launched successively from mid-November. The lineup offers premium
design with functionality, and includes an ultra-thin One Seg compatible handset with exceptional design and texture
using high quality stainless-steel, an AQUOS Mobile Phone equipped with a 3.2-inch full wide VGA LCD, and the‘CHAR AZNABLE’S CUSTOM Mobile’ featuring the popular animated character, ‘CHAR AZNABLE’ of ‘Mobile
Suit Gundam’ in its design.
Further, the lineup for spring 2008 sales period was announced on January 28, and will be launched successively
from February.

The lineup consists out of 15 handsets, each full of individuality, will include ‘Internet Machine,’with full keyboard; ‘Waterproof Keitai’ for wet hands; and ‘Stock trading Keitai’ which is equipped with a ‘Stock
trading Key)’.

<Enhanced Search Display Function for Mobile Version of Yahoo! Search>
In October 2007, SOFTBANK MOBILE drastically enhanced the functionality of the mobile version of Yahoo!
Search, the search service of Yahoo! Keitai which is the portal for SOFTBANK MOBILE handsets. In addition to
major design changes in the search result display, this function enhancement allows customers to find what they needmost in the search results by predicting their needs and showing these results at the top of the page, enabling richer
search results faster and easier.

<White Plan Subscribers Exceed 10 Million>
There has been steady growth in the number of applications for White Plan, which exceeded 10 million subscribers
on December 22, 2007.

The plan allows users to make free domestic on-net voice calls between 1:00am and9:00pm with a basic monthly charge of ¥980 (including tax)*3 and to make calls outside of this time range or to otheroperators’ users with a flat fee of ¥21 (including tax) per 30 seconds.

The number of White Plan applications

exceeded 10 million in approximately 11 months since its introduction in January 2007. At the same time, thenumber of applications to Double White discount service reached 3.23 million. This discount service, available to
White Plan subscribers, halves the ¥21 flat fee to ¥10.5 (including tax) per 30 seconds for an additional basic monthly
charge of ¥980 (including tax).
Further, SOFTBANK MOBILE has introduced White Plan Student Discount, a new discount service for students,
which offers free basic monthly charge for three years upon subscription.

This service will be offered fromFebruary 1 till May 31, 2008
*3. Charges for Video Call, 64K digital data communication and International service will be applied separately.

7

SOFTBANK CORP. CONSOLIDATED FINANCIAL REPORTFor the nine-month period ended December 31, 2007

[Broadband Infrastructure]<<Summary of Segment Results>>
Net sales¥194,160 million (1.1% decrease year-on-year)

Operating income¥30,295 million (56.0% increase year-on-year)

Total installed lines for Yahoo! BB ADSL, 4,943,000 (at the end of December 2007)<Analysis of This Period Results>
Net sales decreased by ¥2,157 million, or 1.1%, year-on-year, to ¥194,160 million.

Operating income increased by¥10,879 million, or 56.0%, to ¥30,295 million.

<Results for the Third Quarter>（Millions of yen）
Fiscal year ending March 31,2008

Fiscal year ended March 31,2007
Q1

Q2

Q3

Q4

Q1

Q2

Q3

Net sales

63,32265,72867,266

67,91065,74764,07264,340Operatingincome

5,479

6,189

7,747

7,393

8,665

10,32011,309<Operating Conditions>
The number of installed lines of Yahoo! BB ADSL, the comprehensive broadband service provided by SOFTBANKBB Corp. (hereinafter ‘SOFTBANK BB’), was 4,943,000 lines at the end of this period. On a customer payment
basis, ARPU for the third quarter reached ¥4,316. In ADSL operations, measures to improve management efficiency
resulted in increased operating income.

Moreover, the ratio of subscribers to faster services, such as Yahoo! BB 50M,

and high-value-added services, such as Wireless LAN Pack, increased steadily, reaching 30.0% for faster services,
including Yahoo! BB 50M, and 30.1 % for Wireless LAN Pack.

<Optic-fiber Business>
Currently, in the case where the Group installs optic-fibers to users’ homes, regardless of whether the number of users issmall or large, the Group needs to lease a cable of optic-fiber bundling 8 subscription lines from NIPPON TELEGRAPH
AND TELEPHONE EAST CORPORATION and NIPPON TELEGRAPH AND TELEPHONE WEST
CORPORATION (hereinafter ‘NTT East and West’). Based on these conditions a fair competitive environment is not
yet available. When leasing an optic-fiber per subscriber (an unbundled line) becomes available, as with the ADSL
service, it will be possible to provide service at a lower price to users. Therefore, the Group will continue verification
tests and other efforts with other operators and negotiate with NTT East and West and the Ministry of Internal Affairs
and Communications. In addition to these efforts, in certain parts of the Tokyo metropolitan area, Kanagawa, Aichi
and Miyagi Prefectures, the Group is continuously implementing its Yahoo! BB hikari Installation Free service. The
service does not require installation work at users’ home as it utilizes optic-fibers and the existing telephone lines fortransmission.

8

SOFTBANK CORP. CONSOLIDATED FINANCIAL REPORTFor the nine-month period ended December 31, 2007

[Fixed-line Telecommunications]<<Summary of Segment Results >>Net sales¥271,452 million (1.5 % decrease year-on-year)

Operating income¥1,724 million

Total installed lines for the Otoku Line service, 1,351,000 (at the end of December 2007)< Analysis of This Period Results>
Net sales decreased by ¥4,210 million, or 1.5% year-on-year, to ¥271,452 million. Operating income amounted to¥1,724 million in this period, whereas an operating loss of ¥2,308 million was recorded in the same period of theprevious fiscal year.

< Results for the Third Quarter>（Millions of yen）
Fiscal year ending March 31,2008

Fiscal year ended March 31,2007
Q1

Q2

Q3

Q4

Q1

Q2

Q3

Net sales

88,673

93,276

93,712

98,46690,486

90,98689,979Operatingincome (loss)

1,212

(916)

(2,603)

(656)

(111)

460

1,375

<Operating Conditions>
SOFTBANK TELECOM is utilizing its core Otoku Line direct connection fixed-line voice service to expand its
corporate customer base.

The number of Otoku Line installed lines steadily increased, reaching a total of 1,351,000

at the end of this period, a year-on-year increase of 215,000. Corporate customers constituted 68.1% of the totallines, a year-on-year increase of 12.8 percentage points.

SOFTBANK TELECOM will continue to focus its efforts

on direct marketing to major corporate clients, for which profitability is higher.
Due to the increasing demand for Otoku Line digital lines for corporate customers, SOFTBANK TELECOM
recorded loss on unused telecommunications supplies, loss on disposal of fixed assets and impairment loss on leased
assets in the third quarter for part of its analogue telecommunications equipment.

[Internet Culture]<<Summary of Segment Results>>
Net sales¥176,925 million (25.2 % increase year-on-year)

Operating income¥83,779 million (20.8 % increase year-on-year)

Number of stores on Yahoo! Shopping and Yahoo! Auctions reached 30,223<Analysis of This Period Results>
Net sales increased by ¥35,555 million, or 25.2 %, year-on-year, to ¥176,925 million. Operating income increasedby ¥14,424 million, or 20.8 %, to ¥83,779 million.

9

SOFTBANK CORP. CONSOLIDATED FINANCIAL REPORTFor the nine-month period ended December 31, 2007

<Results for the Third Quarter>(Millions of yen)
Fiscal year ending March 31,2008

Fiscal year ended March 31,2007
Q1

Q2

Q3

Q4

Q1

Q2

Q3

Net sales

44,642

46,67650,04952,842

52,796

57,623

66,505

Operatingincome21,63022,71225,011

27,18927,14827,76628,864<Operating Conditions>
In Yahoo Japan Corporation’s advertising business, sales of display advertising were robust, supported by firm salesof behavioral advertising and growth in sales of Prime Display, which Yahoo Japan Corporation began marketing as a
strategic product in October 2007. Paid listing advertising sales again surged ahead because of increased use of
search services, start of the listing advertising service during the second quarter, which takes into consideration a
quality index and the bidding price in determining the listing order.
Furthermore, in non-advertising business services, e-commerce and information listing related sales increased
steadily.

Moreover, the total number of stores on Yahoo! Shopping and Yahoo! Auctions was 30,223 at the end of

this period, a year-on-year increase of 5,162.

[e-Commerce]<<Summary of Segment Results>>
Net sales¥195,107 million (2.9 % increase year-on-year)

Operating income¥2,910 million (40.3 % decrease year-on-year)

Launch of a New Brand, SoftBank SELECTION<Analysis of This Period Results>
Net sales increased by ¥5,558 million, or 2.9 % year-on-year, to ¥195,107 million. Operating income decreased by¥1,961 million year-on-year, or 40.3 %, to ¥2,910 million.

<Results for the Third Quarter>（Millions of yen）
Fiscal year ending March 31,2008

Fiscal year ended March 31,2007
Q1

Q2

Q3

Q4

Q1

Q2

Q3

Net sales

59,14265,03765,36982,021

61,66063,812

69,634

Operatingincome

1,461

1,399

2,010

1,809

1,167

933

809

<Operating Conditions>
In SOFTBANK BB’s distribution business, a new brand, SoftBank SELECTION, was established in November 2007.
The brand incorporates a range of specially selected mobile handset accessories and computer software, which areavailable at certain SoftBank shops, mass appliance retailers, and other outlets.
Sales of network peripherals, such as routers and switching devices, and IT equipment for corporate customers,

10

SOFTBANK CORP. CONSOLIDATED FINANCIAL REPORTFor the nine-month period ended December 31, 2007

such as servers and client PCs, were strong during this period. Although sales of hardware to mass applianceretailers increased, operating income decreased due to sluggish sales of highly profitable software and initialinvestments in the mobile solution business for the corporate market and in new businesses, such as SaaS*4.
*4. Software as a Service: Instead of purchasing application software, this service allows customers to use the software on theprovider’s server via a meter-rate system.

[Others]<Analysis of This Period Results>
Net sales increased by ¥9,260 million, or 14.1 % year-on-year, to ¥74,963 million. Operating loss was ¥3,268
million, compared with an operating loss of ¥4,172 million in the same period of the previous fiscal year.
The results of this segment include the results of broadcast media business (mainly Broadmedia Corporation),technology services business (SOFTBANK TECHNOLOGY CORP.), media & marketing business (mainly
SOFTBANK Creative Corp. and ITmedia Inc.), overseas fund business, and other businesses (mainly TV Bank Corp.
and Fukuoka Softbank Hawks related businesses).

<Results for the Third Quarter>（Millions of yen）
Fiscal year ending March 31,2008

Fiscal year ended March 31,2007
Q1

Q2

Q3

Q4

Q1

Q2

Q3

Net sales

20,28923,785

21,62825,082

24,871

26,90723,184

Operatingincome (loss)

(717)

547

(4,002)

(557)

(689)

38

(2,617)

11

SOFTBANK CORP. CONSOLIDATED FINANCIAL REPORTFor the nine-month period ended December 31, 2007

2. Qualitative Analysis Relating to the Consolidated Financial Position<<Summary of the Consolidated Financial Position>>
Total assets¥4,485,056 million(a 4.0% increase from the end of March 2007)

Total liabilities¥3,641,386 million(a 1.3% increase from the end of March 2007)¥843,669 million(a 17.8% increase from the end of March 2007)

EquityCash flows from operating activitiesa ¥57,256 million increase

Cash flows from investing activitiesa ¥273,635 million decrease

Cash flows from financial activitiesa ¥301,215 million increase

Balance of cash and cash equivalents¥460,278 million(a ¥82,757 million increase fromthe end of March 2007)(1) Assets, Liabilities and Equity
Assets, liabilities, and equity at the end of this period were as follows:[Current Assets]
Current assets increased by ¥225,238 million from the end of the previous fiscal year, to ¥1,472,672 million.

This

was mainly due to an increase in notes and accounts receivable-trade of ¥219,598 million, resulting from a favorable
trend in the installment sales of mobile handsets of SOFTBANK MOBILE. Also, as a consequence of factors
including SOFTBANK MOBILE securitizing a portion of its installment sales receivables, cash and deposits
increased by ¥83,335 million, while short-term deferred tax assets of ¥31,128 million were reversed.
Furthermore, funds procured through the securitization of installment sales receivables were recorded as
borrowings, and entrusted installment sales receivables were recorded as notes and accounts receivable-trade.

[Fixed Assets]<Property and equipment, net>
Property and equipment, net increased by ¥8,150 million from the end of the previous fiscal year, to ¥1,038,003
million.

This was primarily the result of an increase of ¥41,996 million in telecommunications equipment, such asbase stations and switching equipment.

On the other hand, due to the completion of construction,

construction-in-progress decreased by ¥19,960 million.

<Intangible assets>
Intangible assets decreased by ¥33,016 million from the end of the previous fiscal year, to ¥1,246,693 million.

This

was primarily the result of a decrease of ¥42,548 million in goodwill, whereas software increased by ¥15,285 million.

<Investments and other assets>
Investments and other assets decreased by ¥25,491 million from the end of the previous fiscal year, to ¥724,185
million.

This was primarily the result of reversing ¥33,662 million in non-current deferred tax assets due to theutilization of loss carry-forwards.

12

SOFTBANK CORP. CONSOLIDATED FINANCIAL REPORTFor the nine-month period ended December 31, 2007

[Current Liabilities]
Current liabilities decreased by ¥34,620 million from the end of the previous fiscal year, to ¥1,108,283 million.

This

was primarily the result of decreases of ¥71,999 million in accounts payable-other and accrued expenses, ¥41,045
million in notes and accounts payable-trade, and ¥20,000 million in cash receipts as collateral, which offset increasesof ¥55,427 million in short-term borrowings, ¥48,309 million in current portion of lease obligations, and ¥28,608
million in current portion of corporate bonds.

[Long-term liabilities]
Long-term liabilities increased by ¥81,390 million from the end of the previous fiscal year, to ¥2,533,103 million.
Lease obligation increased by ¥171,269 million and corporate bonds rose ¥38,450 million, while long-term debt
decreased by ¥84,532 million.
The balance of long-term borrowings procured by SOFTBANK MOBILE through the whole businesssecuritization (WBS) financing scheme decreased by ¥60,069 million from the end of the previous fiscal year, to¥1,295,021 million.

[Equity]
Equity increased by ¥127,432 million from the end of the previous fiscal year, to ¥843,669 million, and net income inthis period was ¥93,196 million. However, due to the adoption of new accounting standards at a U.S. subsidiary, a
reduction in retained earnings of ¥5,150 million and payment of dividends from retained earnings of ¥2,639 million
were recorded.

As a result, accumulated deficit improved by ¥85,108 million. In addition, increases of ¥24,074

million in common stock and ¥24,032 million in additional paid-in capital were recorded due to such factors as theexecution of stock acquisition rights and stock subscription rights. Moreover, deferred loss on derivatives underhedge accounting improved by ¥27,701 million, and minority interests in consolidated subsidiaries increased ¥23,864
million. However, unrealized gain on available-for-sale securities decreased by ¥51,140 million.
A subsidiary of the Company in the United States applied ‘Accounting for Uncertainty in Income Taxes’ (Financial
Accounting Standard Board Interpretation No. 48), effective for fiscal years beginning after December 15, 2006, fromthe nine-month period ended December 31, 2007.

The cumulative effect of applying the provisions of thisInterpretation was reported as an adjustment to the opening balance of accumulated deficit.

(2) Cash Flow
During this period, net cash provided by operating activities was ¥57,256 million, net cash used in investing activitieswas ¥273,635 million, and net cash provided by financing activities was ¥301,215 million. As a result, cash andcash equivalents at the end of this period amounted to ¥460,278 million, an increase of ¥82,757 million from the endof the previous fiscal year.

[Cash Flow from Operating Activities]
Net cash provided by operating activities was ¥57,256 million. Income before income taxes and minority interests
for this period amounted to ¥217,265 million.

As non-cash items, depreciation and amortization of ¥163,277

million and amortization of goodwill of ¥44,261 million were recorded. Other adjustment items included equity in

13

SOFTBANK CORP. CONSOLIDATED FINANCIAL REPORTFor the nine-month period ended December 31, 2007

earnings under the equity method of ¥61,570 million and unrealized appreciation on investments at subsidiaries in
U.S. and gain on sale of those investment securities of ¥17,341 million, which were subtracted from income before
income taxes and minority interests for this period. On the other hand, interest expense of ¥83,573 million andvaluation loss on investment securities of ¥11,760 million were added. In addition, due to an increase in receivablesof ¥221,519 million and a decrease in payables of ¥41,614 million, operating cash flow was impacted negatively.
Interest paid was ¥76,925 million, and income taxes paid, for Yahoo Japan Corporation and others, were ¥52,560
million.

[Cash Flow from Investing Activities]
Net cash used in investing activities was ¥273,635 million.

As a result of capital investment, mainly in thetelecommunications segments, purchase of property and equipment and intangibles totaled ¥283,706 million. In
addition, purchase of marketable and investment securities was ¥36,087 million, while proceeds from sales ofmarketable and investment securities were ¥31,526 million.

[Cash Flows from Financing Activities]
Net cash provided by financing activities was ¥301,215 million.

In the Mobile Communications segment, ¥282,726

million was recorded from the sale and lease back of equipment newly acquired, and mobile handset installment salesreceivables were securitized, which resulted in proceeds from long-term debt of ¥224,542 million. In addition,
proceeds from issuance of bonds by the Company were ¥89,463 million, and from execution of warrants were¥44,768 million. On the other hand, short-term borrowings decreased by ¥78,309 million, and cash receipts as
collateral decreased by ¥20,000 million.

Repayment of long-term debt was ¥174,891 million, and payment for theredemption of straight bonds was ¥23,932 million.

14

SOFTBANK CORP. CONSOLIDATED FINANCIAL REPORTFor the nine-month period ended December 31, 2007

(3) Major Financing Activities
The major financing activities in this period were as follows:
Item

Company Name

Details

Summary

New stock issue

SOFTBANK CORP.

Bond issue

SOFTBANK CORP.

¥44,088 million procured
following the execution ofstock acquisition rights.
24th Unsecured Straight
Bond (Fukuoka SoftBank
HAWKS Bond)

Date of execution:
September 27, 2007
Funds procured: ¥44,088 million
Date of issue: April 26, 2007
Date of redemption: April 26, 2010
Aggregate amount of issue:¥20,000 million
Coupon: 2.72%
Use: mainly repayment of existing
interest-bearing debt
Date of issue: June 19, 2007
Date of redemption: June 17, 2011
Aggregate amount of issue:¥55,000 million
Coupon: 3.39%
Use: mainly repayment of debt
Date of issue: June 19, 2007
Date of redemption: June 19, 2014
Aggregate amount of issue:¥15,000 million
Coupon: 4.36%
Use: mainly repayment of debt
Procurement date: June 29, 2007
Redemption method: monthly
pass-through repayment
Use: capital investment and repayment offunds raised via WBS

25th Unsecured Straight
Bond

26th Unsecured Straight
Bond

Securitization ofreceivables

Repayment ofdebt and others

SOFTBANKMOBILE Corp.

SOFTBANK CORP.

Procurement of funds
totaling ¥88,161 million
accompanying securitizationof mobile phone installment
sales receivables (recorded as
borrowings)
Procurement of funds
totaling ¥64,863 million
accompanying securitizationof mobile phone installment
sales receivables (recorded as
borrowings)
Procurement of funds
totaling ¥75,518 million
accompanying securitizationof mobile phone installment
sales receivables (recorded as
borrowings)¥130,112 million, net

SOFTBANKMOBILE Corp.

¥60,069 million

SOFTBANKTELECOM Corp.

¥17,400 million

Yahoo Japan
Corporation¥20,000 million

15

Procurement date:
September 28, 2007
Redemption method:monthly pass-through repayment
Planned use: capital investment andrepayment of funds raised via WBS
Procurement date:
December 26, 2007
Redemption method:monthly pass-through repayment
Planned use: capital investment andrepayment of funds raised via WBS
Borrowings: ¥125,112 million (net) and
5,000 million commercial paper
Repayment of funds raised via WBS

SOFTBANK CORP. CONSOLIDATED FINANCIAL REPORTFor the nine-month period ended December 31, 2007

Item

Company Name

Details

Summary

Bond redemption

SOFTBANK CORP.

2nd Unsecured Straight Bond

Date of redemption:
September 27, 2007
Aggregate amount of redemption:¥23,900 million

Implementation ofcapital investment
through financelease agreementswith ownershiptransfer

SOFTBANKMOBILE Corp.

Implementation of capital
investment for mobile
communications utilizing
lease agreements

Funds procured during the interim
period: ¥282,726 million

3. Qualitative Information Related to the Forecasts of Consolidated Results
The Company strives to increase returns to shareholders by augmenting enterprise value. Our basic policy is toreturn our profits to all our stakeholder groups in a fair way.
The Company’s policy regarding dividends is to set dividend payments while taking into consideration the need tomaintain the proper balance between bolstering the operating base and preserving a stable dividend from a
medium-to-long-term perspective.

The dividend for the current fiscal year is undecided at this time, and there are noplans to pay an interim dividend.

16

SOFTBANK CORP. CONSOLIDATED FINANCIAL REPORTFor the nine-month period ended December 31, 2007

4. The SOFTBANK GroupAs of December 31, 2007, the Group is comprised of the Company (pure holding company) and the following ten
business segments. The number of consolidated subsidiaries and equity-method companies in each business segment is
as follows.

Consolidated
subsidiaries

Equity-method
non-consolidated
subsidiaries andaffiliates

Main business of segment and name ofbusiness

Mobile Communications

5

3

Provision of mobile communication services andmobile phones accompanying the services etc.
(Core company: SOFTBANK MOBILE Corp.)

Broadband Infrastructure

53Provision of ADSL and fiber-optic high-speed
Internet connection service, IP telephony service,etc.
(Core company: SOFTBANK BB Corp.*1)
Fixed-line telecommunications such as voice
transmission service, data transmission service,private leased circuit and data center service etc.
(Core companies: SOFTBANK IDC Corp.,
SOFTBANK TELECOM Corp.*1)

Business segments

Fixed-line Telecommunications

4-

Internet Culture

15

19

e-Commerce

6

4

Others

76

45

111

74

Total

Internet-based advertising operations, portal
business and auction business etc.
(Core company: Yahoo Japan Corporation*1)
Distribution of PC software and such
hardware as PCs and peripherals, enterprisesolutions, and diversified e-commercebusinesses, including business transaction
platform (B2B) and consumer-related
e-commerce (B2C) etc.
(Core companies: SOFTBANK BB
Corp.(Note1) Vector Inc., Carview Corporation)
Broadmedia, Technology Services, Media &Marketing, Overseas Funds, Others(Core companies: Broadmedia Corporation*2,
SOFTBANK TECHNOLOGY CORP.,SOFTBANK Creative Corp., ITmedia Inc.,
Fukuoka Softbank Hawks Marketing Corp.)

The following SOFTBANK subsidiaries are listed on domestic stock exchanges as of December 31, 2007:
Company Name

Listed ExchangeYahoo Japan Corporation

Tokyo Stock Exchange 1st section
Jasdaq Securities Exchange

SOFTBANK TECHNOLOGY CORP.

Tokyo Stock Exchange 1st section

Vector Inc.

Osaka Securities Exchange Hercules

Broadmedia Corporation
ITmedia Inc.

*3

Carview Corporation

Osaka Securities Exchange Hercules
Tokyo Stock Exchange Mothers*3

Tokyo Stock Exchange Mothers*1. SOFTBANK BB Corp., SOFTBANK TELECOM Corp. and Yahoo Japan Corporation are included in the consolidated
subsidiaries of 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 andtheir operating results are allocated to multiple business segments.
*2. Broadmedia Corporation changed its company name from Club iT Corporation on October 1, 2007.
*3. ITmedia Inc. and Carview Corporation listed their shares on the Tokyo Stock Exchange Mothers on April 19 andJune 12 of 2007 respectively.

17

SOFTBANK CORP. CONSOLIDATED FINANCIAL REPORTFor the nine-month period ended December 31, 2007

4. Consolidated Financial Statements
Consolidated Balance Sheets(Millions of yen; amounts less than one million yen are omitted.)
As of
December 31, 2006

As of
December 31, 2007

As ofMarch 31, 2007

AmountAmountAmountIncrease(Decrease)for nine months
Amount%ASSETS
Current assets:
Cash and deposits
Notes and accounts receivable - tradeMarketable securities
Inventories¥394,772¥461,001¥377,666

83,33522.1

471,266

803,570

583,972

219,598

37.6

7,022

7,958

8,588

(630)

(7.3)

79,65968,47876,898(8,419)(10.9)

Deferred tax assets

68,861

77,866108,994(31,128)(28.6)

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

105,925

104,497

119,250(14,752)(12.4)(18,279)(50,701)(27,936)(22,764)-

1,109,229

1,472,672

1,247,433

225,238

18.1

Buildings and structures

87,74982,42489,444(7,020)(7.8)

Telecommunications equipment

667,197736,781694,785

41,996

6.0

Telecommunications service lines

92,95587,801

92,235(4,434)

(4.8)

Land

30,11924,837

27,747(2,909)(10.5)

Construction in progress

65,20051,817

71,777(19,960)(27.8)

Other

51,11854,34153,861479

0.9

994,341

1,038,003

1,029,852

8,150

0.8

Goodwill

1,144,518

990,378

1,032,927(42,548)(4.1)

Software183,330

215,901

200,615

15,285

7.6

Other intangibles

46,34440,414

46,168(5,754)(12.5)

1,374,193

1,246,693

1,279,710(33,016)(2.6)

454,786

487,173

487,421

(247)

(0.1)

157,336

124,121

157,783(33,662)(21.3)

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

106,726

121,013

113,877

7,136

6.3

(9,416)
709,433
3,077,968(8,122)
724,185
3,008,883(9,405)
749,677
3,059,240

1,282(25,491)(50,357)

(3.4)
(1.6)

4,655

3,500

4,178

(678)

(16.2)

Total assets¥4,191,853¥4,485,056¥4,310,852

174,203

4.0

18

SOFTBANK CORP. CONSOLIDATED FINANCIAL REPORTFor the nine-month period ended December 31, 2007

Consolidated Balance Sheets(Millions of yen; amounts less than one million yen are omitted.)
As of
December 31, 2006

As of
December 31, 2007

As ofMarch 31, 2007

AmountAmountAmountIncrease(Decrease)for nine months

Amount%LIABILITIES AND EQUITYCurrent liabilities:
Accounts payable - trade¥159,154¥154,121¥195,167(41,045)(21.0)

Short-term borrowings

254,606

249,083

193,656

55,247

28.6

Commercial paper

19,800-5,000(5,000)-Current portion of corporate bonds
Accounts payable - otherand accrued expenses

23,964

72,572

43,96428,60865.1

342,068

343,561

415,561(71,999)(17.3)

Income taxes payable

76,593

16,38133,070(16,688)(50.5)

Current portion of lease obligations

3,036

66,35818,04948,309

267.7

Cash receipts as collateral

150,000

130,000

150,000(20,000)(13.3)

Other current liabilities

84,59376,20388,433(12,230)(13.8)

Total current liabilities

1,113,816

1,108,283

1,142,903(34,620)(3.0)

Corporate bonds

451,482

461,050

422,599

38,450

9.1

Long-term debt

1,720,950

1,644,650

1,729,183(84,532)(4.9)

Deferred revenue

30,132

15,32026,392(11,072)(42.0)

Deferred tax liabilities

47,23046,72550,136(3,410)(6.8)

Liability for retirement benefits

17,177

16,095

16,701

(606)

(3.6)

Allowance for point mileage

44,78743,67843,787

(109)

(0.2)

Lease obligations

12,521

246,234

74,964

171,269

228.5

Other liabilities

57,85759,34887,947(28,599)(32.5)

Total long-term liabilities

2,382,139

2,533,103

2,451,712

81,3903.3

Total liabilities

3,495,956

3,641,386

3,594,615

46,7701.3

163,130

187,384

163,309

24,074

14.7

2

1

1

-

-

Additional paid-in capital

187,490

211,701

187,669

24,032

12.8

Accumulated deficit(199,161)(107,162)(192,271)

85,108-Less: Treasury stock

(187)

(203)

(193)

(10)

-

Total shareholders’ equity

151,274

291,721

158,515

133,205

84.0

Unrealized gain on available-for-sale securities

99,54071,479122,619(51,140)(41.7)

Deferred loss and (gain) on derivatives underhedge accounting(11,340)

705(26,995)

27,701-

Foreign currency translation adjustments

28,326

25,69928,810(3,110)(10.8)

Total valuation and translation adjustments

116,525

97,884

124,434(26,549)(21.3)

3,167

92

3,180

(3,088)(97.1)

Minority interests

424,929453,971

430,106

23,864

5.5

Total equity

695,897

843,669

716,237

127,432

17.8¥4,191,853¥4,485,056¥4,310,852

174,203

4.0

Long-term liabilities:

Equity:Common stock
Cash receipts for new stock subscriptions

Stock acquisition rights

Total liabilities and equity

19

SOFTBANK CORP. CONSOLIDATED FINANCIAL REPORTFor the nine-month period ended December 31, 2007

Consolidated Statements of Income(Millions of yen; amounts less than one million yen are omitted.)

Nine-monthNine-month
period ended
period ended
December 31, 2006 December 31, 2007
AmountAmountNet sales
Cost of sales
Gross Profit
Selling, general and administrative expenses
Operating income

Amount%Fiscal year
ended March
31, 2007
Amount¥236,396

13.0¥2,544,219

Increase(Decrease)¥1,822,369¥2,058,765

1,005,496

1,086,108

80,6128.0

1,409,520

816,872

972,656

155,784

19.1

1,134,698

619,587

712,467

92,88015.0

863,633

197,285

260,188

62,90331.9

271,065Interest income
Foreign exchange gain, net

3,075

2,201

(873)

(28.4)

3,394

-

3,750

3,750

-

-

Equity in earnings of affiliated companies

5,282

61,57056,288

-

2,130

6,339

3,894

(2,444)(38.6)

8,006

14,697

71,41756,720385.9

13,53153,53983,57330,033

56.1

79,521

2,943-(2,943)-834

28,396-(28,396)-

28,715

Other non-operating income
Non-operating income
Interest expense
Foreign exchange loss, net
Financing related expenses
Other non-operating expenses
Non-operating expenses

15,487

16,034546

3.5

22,101

100,367

99,607

(759)

(0.8)

131,173

Ordinary income

111,615

231,998

120,383

107.9

153,423

Gain on sale of investment securities

80,708

5,925(74,783)(92.7)

83,160

2,097

3,123

1,025

48.9

2,598

2,474

17,341

14,867

600.7

2,253

1,976

5,479

3,503

177.3

4,641

87,25731,870(55,387)(63.5)

92,653

3,448

11,760

8,311

241.0

5,351

1,808

9,493

7,685

424.9

7,695

-

8,818

8,818

-

-

Dilution gain from changes in equity interest
Unrealized appreciation on investments andgain on sale of investments at subsidiaries
in the U.S. , net
Other special income
Special income
Valuation loss on investment securities
Loss on disposal of fixed assets
Impairment loss
Loss on unused telecommunications supplies
Loss on redemption of bonds
Other special losses
Special loss
Income before income taxes and minority
interests
Income taxes:
Current
Deferred
Minority interests in net income
Net income-

12,006

12,006--

10,429-(10,429)-

10,429

6,263

4,525

(1,738)(27.8)

14,02821,94946,60324,653112.3

37,503

176,922217,265

40,34222.8

208,573

93,52530,266(63,258)(67.6)

48,72633,25363,87530,622

92.1

93,67628,21029,9251,715

6.1

37,355¥21,933¥93,196¥71,262324.9¥28,81520

Consolidated Statements of Changes in Equity(Millions of yen, amounts less than one million yen are omitted)

Nine-month period from April 1, 2006 to December 31, 2006:
Shareholders’ equity
Common Cash receipts for
new stockstock
subscriptions

Balance at April 1, 2006

Additional
paid-in
capitalAccumulated
deficit

Treasury
stock

Total

Valuation and translation adjustments
Unrealized gain Deferred gain
Foreign currency(loss) on(loss) on
translation
available-for- derivatives underadjustments
hedgesale securities
accounting

Total

Stock
acquisitionrightsMinority
interests

Total equity¥162,916¥5¥187,303¥(218,561)¥(169)¥131,494¥129,051¥(36,840)¥19,062¥111,273¥3,150¥101,346¥347,263

214

(5)

213

-

-

422

-

-

-

-

-

-

422

Cash receipts for new stock subscriptions

-

2

-

-

-

2

-

-

-

-

-

-

2

Cash dividends (Note)

-

-

-

(2,637)-(2,637)

-

-

-

-

-

-

(2,637)

Bonuses to directors (Note)

-

-

-

(87)

-

(87)

-

-

-

-

-

-

(87)

Adjustments of accumulated deficit due tochange in scope of the consolidation

-

-

(26)

191

-

164

-

-

-

-

-

-

164

Net income

-

-

-

21,933-

21,933

-

-

-

-

-

-

21,933Purchase of treasury stock

-

-

-

-

(17)

(17)

-

-

-

-

-

-

(17)

Items other than changes in shareholders’equity, net

-

-

-

-

-

-

(29,511)25,500

9,263

5,252

17

323,583

328,853

214

(3)

187

19,400(17)

19,780(29,511)25,500

9,263

5,252

17

323,583

348,633¥163,130¥2¥187,490¥(199,161)¥(187)¥151,274¥99,540¥ (11,340)¥28,326¥116,525¥3,167¥424,929¥695,897

Changes of items during the period
Exercise of warrants

21

Balance at December 31, 2006

Note: Appropriation of retained earnings resolved at the annual shareholders’ meeting held in June 2006.

SOFTBANK CORP. CONSOLIDATED FINANCIAL REPORTFor the nine-month period ended December 31, 2007

Total changes in this period

Nine-month period from April 1, 2007 to December 31, 2007:(Millions of yen, amounts less than one million yen are omitted)
Shareholders’ equity

Common Cash receipts for
new stockstock
subscriptions

Balance at April 1, 2007

Additional
paid-in
capitalAccumulated
deficit

Treasurystock

Valuation and translation adjustments
Unrealized gain Deferred gain
Foreign currency(loss) on(loss) on
translation
available-for- derivatives underadjustments
hedgesale securities
accounting

Total

Total

Stock
acquisitionrightsMinority
interests

Total equity

163,309

1

187,669(192,271)(193)

158,515

122,619(26,995)

28,810124,434

3,180

430,106

716,237---(5,150)-(5,150)

-

-

-

-

-

-

(5,150)24,074(1)

24,032--

48,105

-

-

-

-

-

-

48,105

Cash receipts for new stock subscriptions

-

1

-

-

-

1

-

-

-

-

-

-

1

Cash dividends

-

-

-

(2,639)-(2,639)

-

-

-

-

-

-

(2,639)Changes of items during the period
Increase in accumulated deficit due toadoption of new accounting standards at a
subsidiary in the U.S.
Exercise of warrants

22

-

-

-

(298)

-

(298)

-

-

-

-

-

-

(298)

-

-

-

93,196-

93,196

-

-

-

-

-

-

93,196

Purchase of treasury stock

-

-

-

-

(10)

(10)

-

-

-

-

-

-

(10)

Items other than changes in shareholders’equity, net

-

-

-

-

-

-

( 51,140)

27,701( 3,110)( 26,549)( 3,088)

23,864(5,772)

Total changes in this period

24,074-24,032

85,108(10)

133,205( 51,140)

27,701( 3,110)( 26,549)( 3,088)

23,864

127,432

Balance at December 31, 2007

187,3841

211,701(107,162)(203)

291,72171,479705

25,69997,88492453,971843,669SOFTBANK CORP. CONSOLIDATED FINANCIAL REPORTFor the nine-month period ended December 31, 2007

Adjustments of accumulated deficit due tochange in scope of the consolidation
Net income

Fiscal year from April 1, 2006 to March 31, 2007:(Millions of yen, amounts less than one million yen are omitted)
Shareholders’ equity

Valuation and translation adjustments
Unrealized gain Deferred gain
Foreign currency(loss) on(loss) on
translation
available-for- derivatives underadjustments
hedgesale securities
accounting

StockacquisitionrightsMinority
interests

Total equity¥111,273¥3,150¥101,346¥347,263

-

-

-

-

780

-

-

-

-

-

1

-

-

-

-

-

-

(2,637)

(90)

-

-

-

-

-

-

(90)

-

176

-

-

-

-

-

-

176

28,815-28,815

-

-

-

-

-

-

28,815

-

-

(23)

(23)

-

-

-

-

-

-

(23)

-

-

-

-

(6,432)

9,845

9,747

13,16030

328,760

341,951

Common Cash receipts for
new stockstock
subscriptions

Additional
paid-in
capitalAccumulated
deficit

Treasurystock¥162,916¥5¥187,303¥(218,561)¥(169)¥131,494¥129,051¥(36,840)¥19,062

393

(5)

393

-

-

780

-

-

Cash receipts for new stock subscriptions

-

1

-

-

-

1

-

Cash dividends (Note)

-

-

-

(2,637)-(2,637)

Bonuses to directors (Note)

-

-

-

(90)

-

Adjustments of accumulated deficit due tochange in scope of the consolidation

-

-

(26)

202

Net income

-

-

-

Purchase of treasury stock--

Items other than changes in shareholders’equity, net

-

-

393

(3)

366

26,289(23)

27,021(6,432)

9,845

9,747

13,16030

328,760

368,973¥163,309¥1¥187,669¥(192,271)¥(193)¥158,515¥122,619¥ (26,995)¥28,810¥124,434¥3,180¥430,106¥716,237

Balance at April 1, 2006

Total

Total

Changes of items during the year
Exercise of warrants

23

Balance at March 31, 2007

Note: Appropriation of retained earnings resolved at the annual shareholders’ meeting held in June 2006.

SOFTBANK CORP. CONSOLIDATED FINANCIAL REPORTFor the nine-month period ended December 31, 2007

Total changes in the year

SOFTBANK CORP. CONSOLIDATED FINANCIAL REPORTFor the nine-month period ended December 31, 2007

Consolidated Statements of Cash Flows(Millions of yen; amounts less than one million yen are omitted.)

Nine-month period
ended December 31,
2006

Nine-month period
ended December 31,
2007

Fiscal year ended
March 31, 2007

Cash flows from operating activities:
Income before income taxes and minority interests¥176,922¥217,265¥208,573

Depreciation and amortization

135,120

163,277

189,092

Amortization of goodwill

42,56544,26153,595Equity in earnings of affiliated companies(5,282)(61,570)(2,130)

Dilution gain from changes in equity interest, net(2,029)(848)(2,484)

Valuation loss on investment securities

3,448

11,7605,351(2,474)(17,341)(2,253)Foreign exchange (gain) loss, net(80,518)
2,749(6,190)(3,572)(82,567)
1,136Interest and dividend income(3,311)(2,577)(3,713)

Interest expense

53,53983,57379,521

Increase in receivables – trade(112,760)(221,519)(225,489)

Increase (decrease) in payables - trade55,284(41,614)

91,18473,561

19,492103,913336,815

184,392

413,729

4,769

2,349

5,519

Interest paid

(37,360)(76,925)(62,081)

Income taxes paid

(45,890)(52,560)(45,964)

258,332

57,256311,201

Adjustments for:

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

Changes in operating assets, and liabilities

Other, net
Sub-totalInterest and dividends received

Net cash provided by operating activities- Continued -24

SOFTBANK CORP. CONSOLIDATED FINANCIAL REPORTFor the nine-month period ended December 31, 2007

Consolidated Statements of Cash Flows (Continued)(Millions of yen; amounts less than one million yen are omitted.)

Nine-month period
ended December 31,
2006

Nine-month period
ended December 31,
2007

Fiscal year ended
March 31, 2007

Cash flows from investing activities:
Purchase of property and equipment, and intangibles¥(230,461)¥ (283,706)¥(297,764)

Purchase of marketable and investment securities
Proceeds from sale of marketable and investment securities(102,571)(36,087)(114,022)

159,339

31,526

168,354

Acquisition of interests in subsidiaries newly consolidated,
net of cash acquired(1,844,046)

2,674(1,844,849)

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

(21)
8

(134)
1,012

(89)
10

Increase in loan receivables(14,228)(26,403)(16,519)

Collection of loan receivables

9,762

24,394

15,749Other, net(6,442)

13,089(8,805)(2,028,660)(273,635)(2,097,937)

Increase (decrease) in short-term borrowings, net

20,645(78,309)(8,848)

Increase (decrease) in commercial paper, net

9,400(5,000)(5,400)

Proceeds from long-term debt

1,586,970

224,542

1,586,970

Repayment of long-term debt

(74,827)(174,891)(98,151)

Proceeds from issuance of bonds

72,66889,46372,558

Redemption of bonds(205,302)(23,932)(205,334)

Exercise of warrants
Proceeds from issuance of shares to minority shareholders
Cash dividends paid

427
300,331(2,636)44,768
6,865(2,635)786
300,378(2,640)Cash dividends paid to minority shareholders(3,126)(3,547)(3,143)-282,726

65,818

Increase (decrease) in cash receipts as collateral, net

50,000(20,000)

50,000

Other, net(31,718)(38,834)(34,607)

1,722,831

301,215

1,718,384(1,878)(1,307)

3,073(49,374)

83,529(65,277)

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

Proceeds from sale and lease back of equipment newly
acquired

Net cash provided by financing activities
Effect of exchange rate changes
on cash and cash equivalents
Net (decrease) increase in cash and cash equivalents
Decrease in cash and cash equivalents due to exclusion ofpreviously consolidated subsidiaries
Cash and cash equivalents, beginning of the period(3,896)(771)(3,896)446,694

377,520446,694

Cash and cash equivalents, end of the period¥393,423¥460,278¥377,520

25

SOFTBANK CORP. CONSOLIDATED FINANCIAL REPORTFor the nine-month period ended December 31, 2007

Condensed Quarterly Financial Information
Condensed Statements of Income(Millions of yen; amounts less than one million yen are omitted.)

Net sales
Cost of sales
Gross profit
Selling, general andadministrative expenses
Operating income
Non-operating income (Note)
Non-operating expenses (Note)
Ordinary income
Special income (Note)
Special loss (Note)
Income before income taxes
and minority interests
Income taxes - Current
Income taxes - Deferred
Minority interests in net income
Net income

First quarter

Second quarter

Third quarter

Fourth quarter

First quarter

Second quarter

Third quarter

April 1, 2006 toJune 30, 2006

July 1, 2006 to
September 30, 2006

October 1, 2006 to
December 31 2006

January1, 2007 to
March 31, 2007

April 1, 2007 toJune 30, 2007

July 1, 2007 to
September 30, 2007

October1, 2007 to
December 31, 2007

AmountAmountAmountAmountAmountAmountAmount¥494,231
273,895
220,336¥625,941
341,443
284,498¥702,195
390,157
312,037¥721,850
404,024
317,826¥663,084
352,896
310,188¥701,660
365,968
335,692¥694,020
367,244326,775

165,978

226,303

227,304

244,045

231,442

246,691

234,333

54,357
12,09640,45925,994
4,672
1,365

58,194
4,540
26,03936,696
66,795
13,89584,733
1,829
37,63748,924
15,788
6,688

73,7804,259
36,23141,808
5,617
15,77578,746
4,531
32,12351,1549,514
2,266

89,0005,654
34,64360,01019,312
14,79692,441
61,231
32,840120,833
4,525
31,02429,30289,59658,02431,65058,40364,527

94,334

10,146
9,224
8,514

70,826(3,182)
8,930

12,552
27,211
10,765(44,798)
60,4239,145

2,826
20,065
10,38013,982
19,00910,203

13,45824,8009,341¥1,418¥13,021¥7,494¥6,881¥25,130¥21,331¥46,734

Note: Foreign exchange gain (loss), equity in earnings (loss) of affiliated companies, income (expenses) from investments in partnerships, andunrealized appreciation on investments and gain on sale of investments at subsidiaries in the U.S. are netted on quarterly basis forpresentation purposes. Unrealized appreciation on investments and gain on sale of investments at subsidiaries in the U.S.,net of prioryear is reclassified retroactively.
Condensed Statements of Cash Flows(Millions of yen; amounts less than one million yen are omitted.)

Net cash provided by (used in)operating activities
Net cash provided by (used in)investing activities
Net cash provided by (used in)financing activities
Effect of exchange rate changes
on cash and cash equivalents
Net increase (decrease) in cash
and cash equivalents
Decrease in cash and cash
equivalents due to exclusionof previously consolidated
subsidiaries
Cash and cash equivalents,
beginning of the period
Cash and cash equivalents, endof the period
Note:“Depreciation and amortization”
and “amortization of goodwill”
included in net cash provided byoperating activities

First quarter

Second quarter

Third quarter

Fourth quarter

First quarter

Second quarter

Third quarter

April 1, 2006 toJune 30, 2006

July 1, 2006 to
September 30, 2006

October 1, 2006 to
December 31, 2006

January 1, 2007 to
March 31, 2007

April 1, 2007 toJune 30, 2007

July 1, 2007 to
September 30, 2007

October 1, 2007 to
December 31, 2007

AmountAmountAmountAmountAmountAmountAmount¥64,675¥122,464¥71,193¥52,868¥(27,478)¥27,922¥56,812(1,965,832)

8,847(71,675)(69,276)(111,519)(115,766)(46,349)

1,743,429(144,656)

124,058(4,446)

218,480

85,045(2,311)134703(2,716)

4,951

1,495

(2,158)(644)(157,593)(12,641)

120,859(15,902)80,978(4,955)

7,506(3,886)

-

(9)

-

(771)

-

-

446,694285,214272,572

393,423

377,520457,727452,771¥285,214¥272,572¥393,423¥377,520

457,727452,771

460,278¥48,989¥62,424¥66,271¥65,001¥67,960¥69,259¥70,319

26

SOFTBANK CORP. CONSOLIDATED FINANCIAL REPORTFor the nine-month period ended December 31, 2007

Basis of Presentation of Consolidated Financial Statements
1. Changes in scope of consolidation
As of December 31, 2007, SOFTBANK CORP. (the “Company”) consolidated 111 subsidiaries (together, the “Group”).
81 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 were as follows:<Increase>
3 companies
Significant changes:
Overture K.K.
Newly acquired<Decrease>
10 companies
2. Changes in scope of equity method
As of December 31, 2007, the Company held 3 non-consolidated subsidiaries and 71 affiliates, all of which were accounted
for under the equity method. 78 non-consolidated subsidiaries and 20 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 application of equity method were as follows:<Increase>
11 companies<Decrease>
3 companies
3. 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 established by the American Institute of Certified Public Accountants (“AICPA”) Guide on Investment
Companies (the “AICPA Guide”) and account for the investment securities in accordance with the AICPA Guide. 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 AICPA Guide.
(2) Derivative instruments:

Stated at fair value(3) Inventories:

Carried at cost, primarily based on the moving-average method27

SOFTBANK CORP. CONSOLIDATED FINANCIAL REPORTFor the nine-month period ended December 31, 2007

[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[3] Accounting principles for major allowances and accruals(1) <Allowance for doubtful accounts>
Allowance for doubtful accounts is calculated based on the aggregate amount of estimated credit losses on doubtfulreceivables, plus an amount for receivables other than doubtful receivables calculated using historical write-off
experience ratios from certain prior periods.
(2) <Accrued retirement benefits>
SOFTBANK MOBILE Corp., SOFTBANK TELECOM Corp., 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 end.
SOFTBANK MOBILE Corp. and SOFTBANK TELECOM Corp. amended the pension plans by suspending thedefined 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 the retirement of applicable employees, and the projected benefit obligations are calculated based onthese fixed retirement benefits. As a result, service cost under the defined benefit pension plans at SOFTBANKMOBILE Corp. and SOFTBANK TELECOM Corp. did not occur for the nine-month period ended December 31,
2007.
(3) <Allowance for point mileage >SOFTBANK MOBILE Corp. 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] Lease
Under Japanese accounting standards for leases, finance leases that deem to transfer ownership of the leased property to thelessee are to be capitalized, while other finance leases are permitted to be accounted for as operating lease transactions if
certain “as if capitalized” information is disclosed in the notes to the lessee’s financial statements.

28

SOFTBANK CORP. CONSOLIDATED FINANCIAL REPORTFor the nine-month period ended December 31, 2007

[6] Accounting for significant hedge transactions(1) 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.
(2) Interest rate swap
① <Hedge accounting>
For interest rate swaps whose amounts, index and periods are same as the conditions for hedged items, the “exceptional
method” is adopted. Under this method, a certain domestic consolidated subsidiary does not account for gains and lossesof those interest rate swaps on a fair value basis and recognizes swap interest on an accrual basis.
② <Derivative instruments for hedging and hedged items>
Derivative instruments for hedging:Interest rate swap contracts
Hedged items:
Interest expense on borrowings③ <Hedging policy>
The domestic consolidated subsidiaries use derivative financial instruments to hedge the risk of exposures to fluctuationsin interest rates in accordance with its internal policies, regarding the authorization and credit limit amount.
④ < Effectiveness of hedge transactions >Effectiveness of the hedge transaction is omitted due to the adoption of “exceptional method.”(3) Forward-exchange contract① <Hedge accounting>Long-term debt denominated in foreign currencies for which foreign exchange forward contracts are used to hedge theforeign currency fluctuation are translated at the contracted rate, if the forward contracts qualify for hedge accounting.
② <Derivative instruments for hedging and hedged items>
Derivative instruments for hedging:
Forward-exchange contract
Hedged items:
Foreign currency-denominated bond
③ <Hedging policy>
In accordance with the Company’s policy, the Company uses derivatives to hedge foreign exchange risk associated withcertain assets and liabilities denominated in foreign currencies.
④ < Effectiveness of hedge transactions >Effectiveness of the hedge transaction is omitted due to qualifying for hedge accounting.
[7] Accounting method for consumption taxes
Consumption taxes are accounted for using the net method of reporting.

29

SOFTBANK CORP. CONSOLIDATED FINANCIAL REPORTFor the nine-month period ended December 31, 2007

4. Accounting for business combinations
All assets and liabilities of acquired entities are revalued at the respective fair market value at the combination date.
5. 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 Corp.) is amortized over
20-year-period.
6. 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.

Change in accounting policies
Accounting for Uncertainty in Income Taxes
A subsidiary of the Company in the United States of America applied “Accounting for Uncertainty in Income Taxes”(Financial Accounting Standard Board Interpretation No. 48), effective for fiscal years beginning after December 15, 2006,
from the nine-month period ended December 31, 2007.
The cumulative effect of applying the provisions of this Interpretation was recorded as an adjustment to the opening balance ofaccumulated deficit, and accordingly, accumulated deficit increased by ¥5,150 million for the nine-month period ended
December 31, 2007.

30

SOFTBANK CORP. CONSOLIDATED FINANCIAL REPORTFor the nine-month period ended December 31, 2007

Notes
(Consolidated Balance Sheets)
1. Accumulated depreciation of property and equipment
As of December 31, 2006
687,610

As of December 31, 2007

million yen

811,675

million yen

As of March 31, 2007
719,297 million yen

2. Contingent liability
Based on debt assumption agreements with financial institutions, SOFTBANK MOBILE Corp. has transferred its debt
repayment obligation for straight bonds previously issued to financial institutions. The bonds and payments to financial
institutions incurred from transferring its debt repayment obligation for the bonds are eliminated in the Company’s consolidatedbalance sheets.
However, under the terms of the indenture, SOFTBANK MOBILE Corp. will continue to be responsible for payments on thebonds until maturity or redemption of the bonds.
Subject Bonds

As of December 31, 2006

As of December 31, 2007

As of March 31, 2007

First Series Unsecured Bond

25,000 million yen

25,000 million yen

25,000 million yen

Third Series Unsecured Bond

25,000 million yen

25,000 million yen

25,000 million yen

Fifth Series Unsecured Bond

25,000 million yen

25,000 million yen

25,000 million yen

Seventh Series Unsecured Bond

25,000 million yen

25,000 million yen

25,000 million yen

Total

100,000 million yen

100,000 million yen

100,000 million yen

3. Assets pledged as collateral(1) For future lease liabilities
As of December 31, 2006

As of December 31, 2007

As of March 31, 2007

10,973 million yen

10,510 million yen

10,877 million yen

Assets pledged as collateral:
Notes and accounts receivable – trade

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

13,905 million yen

13,872 million yen

14,029 million yen

Note: The collateral for the future lease liabilities (finance lease accounted for as operating lease transactions) was
provided by mortgaging against the aggregate of the current and future receivables due from customers of certain
consolidated subsidiaries. The future lease liabilities at the end of periods are as follows:
As of December 31, 2006

As of December 31, 2007

As of March 31, 2007

13,637 million yen

9,121 million yen

13,026 million yen

Future lease liabilities(finance lease accounted for as operating leasetransactions)

31

SOFTBANK CORP. CONSOLIDATED FINANCIAL REPORTFor the nine-month period ended December 31, 2007

(2) For short-term borrowings and long-term debt
Assets pledged as collateral and secured liabilities by consolidated subsidiaries are as follows:
As of December 31, 2006

As of December 31, 2007

As of March 31, 2007

Assets pledged as collateral:
Cash and deposits

71,265

217,693

70,897

Notes and accounts receivable – trade212,387

296,322

303,486

Buildings and structures

13,94913,84013,986

Telecommunications equipment

373,878

253,388362,644

Telecommunications service lines

194

164

226

15,51015,57815,56600LandProperty and equipment- other0

Investment securities andinvestments in unconsolidated
subsidiaries and affiliated companies
Investments and other assets – other assets

143,505

161,963
78

Total

215

196,552
115

849,228 million yen

940,708 million yen

963,475 million yen

As of December 31, 2006

As of December 31, 2007

As of March 31, 2007

Secured liabilities:
Accounts payable - trade

1,137

1,271

1,246

Short-term borrowings

6,831

6,772

5,373

Accounts payable – other and accrued expenses
Long-term debt
Total

120

-

123

1,487,190

1,411,859

1,474,523

1,495,280 million yen

1,419,903 million yen

1,481,267 million yen

SOFTBANK MOBILE Corp. 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 ¥1,295,021 million) resulted from the refinancing theloan accompanying the acquisition of SOFTBANK MOBILE Corp., in addition to the assets pledged as collateral above.
The funds procured through the securitization of installment sales receivables of SOFTBANK Mobile Corp., in theamount of ¥136,251 million and ¥57,177 million, were recorded as “Short-term borrowings” and “Long-term debt,”
respectively, as of December 31, 2007. The installment sales receivables, equivalent to ¥193,429 million which is theamount of senior trust certificate of the securitized installment sales receivables for this procurement, was included in“Notes and account receivable-trade,” along with the amount of trust beneficial certificate held by the SOFTBANKMOBILE Corp. Trustee procured the funds through asset backed loans which were backed by these installment salesreceivables.
4. Securities loaned
A portion of investment securities was lent to financial institutions according to stock lending agreements, and the amounts ofapplicable investment securities recorded in the Company’s consolidated balance sheets are as follows:
As of December 31, 2006
Investment securities

470 million yen

32

As of December 31, 2007
144 million yen

As of March 31, 2007
193 million yen

SOFTBANK CORP. CONSOLIDATED FINANCIAL REPORTFor the nine-month period ended December 31, 2007

5. Cash receipts as collateral
Cash receipts as collateral from financial institutions, to whom the Company has lent shares in its subsidiary under security
deposit agreements, are presented as follows:
As of December 31, 2006
Cash receipts as collateral

150,000 million yen

As of December 31, 2007
130,000 million yen

As of March 31, 2007
150,000 million yen

According to the security deposit agreements, the Company paid a fixed rate amount as stock bailment fees and other fees
totaling ¥2,303 million, ¥2,699 million, and ¥3,539 million for the periods ended December 31, 2006, December 31, 2007, andMarch 31, 2007, respectively, and recorded the fees as other non-operating expenses in the consolidated statements of income.
6. Line of credit as a creditor (not used)
As of December 31, 2006
15,771 million yen

As of December 31, 2007
15,240 million yen

As of March 31, 2007
7,708

million yen

7. Cash receipts for new stock subscriptions
Cash receipts for new stock subscriptions represent amounts paid at the exercise of warrants as advances on subscriptions. In
January 2008, the Company issued 1,200 new shares.

33

SOFTBANK CORP. CONSOLIDATED FINANCIAL REPORTFor the nine-month period ended December 31, 2007

(Consolidated Statements of Income)
1. Selling, general and administrative expenses

Sales commission

Nine-month period ended
December 31, 2006
188,466 million yen

Nine-month period ended
December 31, 2007
211,453 million yen

Fiscal year ended
March 31, 2007
260,478 million yen

Sales promotion expense

101,155

120,277

145,382

Payroll and bonuses

69,61977,631

94,723

Allowance for doubtful accounts

6,117

26,763

16,614

2. Unrealized appreciation on investments and gain 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 the investment securities in accordance with the AICPA Guide.
The net changes in the fair value of the investments are recorded as “Unrealized appreciation on investments and gain on sale ofinvestments at subsidiaries in the U.S., net” and gain or loss on sale of investments, computed based on the acquisition cost, isalso included in such account. The unrealized appreciation on investments and gain or loss on sale of investments included in“Unrealized appreciation on investments and gain on sale of investments at subsidiaries in the U.S., net” are as follows:

Unrealized appreciation on investment
at subsidiaries in the U.S.,net

Nine-month period ended
December 31, 2006

Nine-month period ended
December 31, 2007

2,474 million yen

4,301 million yen

4,935 million yen-

13,040(2,682)

2,474

17,341

2,253

Gain or loss on sale of investments
at subsidiaries in the U.S.,net
Total

Fiscal year ended
March 31, 2007

3. Impairment loss
Segment

Fixed-line Telecommunications

Use

Access gateway switch (AGW)

Type of Assets

Finance lease assets

Impairment loss

¥8,818 million(1) Method used to determine assets grouping
When reviewing for impairment, assets are grouped based on the business unit conducted by the Group. Moreover, assets
related to disposition or restructuring of business, idled assets, and assets leased to others are grouped individually.
(2) Impairment loss of leased access gateway switch (AGW)
Impairment loss is recorded for certain unused access gateway switch (AGW) which were reserved for the analog lines
customers of otoku line direct connection fixed-line voice service. The present values of future lease payment, which areconsidered as the carrying value of lease assets, are recorded in the consolidated statement of income.
4. Loss on unused telecommunications supplies and loss on disposal of fixed assets
In addition to the above impairment loss, loss on unused telecommunications supplies of ¥12,006 million and loss on disposalof fixed assets of ¥5,425 million are recorded for the unused analog lines assets which are reserved for the analog line customersof the direct connection fixed-line voice service.

34

SOFTBANK CORP. CONSOLIDATED FINANCIAL REPORTFor the nine-month period ended December 31, 2007

(Consolidated Statements of Changes in Equity)
Nine-month period from April 1, 2006 to December 31, 2006:
1. Class and number of outstanding shares:(shares in thousands)

March 31, 2006

Increase

Decrease

1,055,231

312-

Number of common stocks

December 31, 2006
1,055,544

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

March 31, 2006

Increase

Decrease

December 31, 2006

149

7

-

156

Number of common stocks

Note: Increase resulted from the acquisition of the fractional shares.
3. Stock acquisition rights:
Type

SOFTBANK,
Corp.
Consolidated
Subsidiaries

Detail of stock acquisitionrightsClass of shares

Stock acquisition rights
issued in 2004

CommonstocksNumber of shares for stock acquisition rights(in thousands)
December 31,
March 31,
Increase
Decrease
2006
2006
24,000

Total

-

-

24,000Millions of yen
December 31,
2006
3,150

-

17

-

3,167

4. Dividends:
Dividend paid
Resolution

Class ofAmount of dividend

Dividend pershares(Millions of yen)share

Ordinary general meeting ofCommonshareholders, June 23, 2006

stocks

2,637

35

¥2.50

Record date

Effective date

March 31, 2006

June 23, 2006

SOFTBANK CORP. CONSOLIDATED FINANCIAL REPORTFor the nine-month period ended December 31, 2007

Nine-month period from April 1, 2007 to December 31, 2007:
1. Class and number of outstanding shares:(shares in thousands)

March 31, 2007

Increase

Decrease

1,055,862

24,747-

Number of common stocks

December 31, 2007
1,080,610

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

March 31, 2007

Increase

Decrease

158

4

-

Number of common stocks

December 31, 2007
162

Note: Increase resulted from the acquisition of the fractional shares.
3. Stock acquisition rights:
Type

SOFTBANK,
Corp.
Consolidated
Subsidiaries

Detail of stock acquisitionrightsClass of shares

Stock acquisition rights
issued in 2004

CommonstocksNumber of shares for stock acquisition rights(in thousands)
December 31,
March 31,
Increase
Decrease2007
2007
24,000Total-

24,000Millions ofyen
December 31,
2007

-

-

-

92

-

92

Note: Decrease resulted from the exercise of warrants.
4. Dividends:
Dividend paid
Resolution

Class ofAmount of dividend

Dividend pershares(Millions of yen)share

Ordinary general meeting ofCommonshareholders, June 22, 2007

stocks

2,639

¥2.50

Record date

Effective date

March 31, 2007

June 25, 2007

5. Adoption of new accounting standards at a subsidiary in the United States of America
A subsidiary of the Company in the United States of America applied “Accounting for Uncertainty in Income Taxes”(Financial Accounting Standard Board Interpretation No. 48), effective for fiscal years beginning after December 15, 2006,
from the nine-month period ended December 31, 2007. The cumulative effect of applying the provisions of this Interpretation
was reported as an adjustment to the opening balance of accumulated deficit, and accordingly, it is recorded as “Increase inaccumulated deficit due to adoption of new accounting standards at a subsidiary in the U.S.” in the consolidated statements ofchanges in equity.

36

SOFTBANK CORP. CONSOLIDATED FINANCIAL REPORTFor the nine-month period ended December 31, 2007

Fiscal year from April 1, 2006 to March 31, 2007:
1. Class and number of outstanding shares:(shares in thousands)

March 31, 2006

Increase

Decrease

March 31, 2007

1,055,231

631-

1,055,862

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, 2006

Increase

Decrease

149

9

-

Number of common stocks

March 31, 2007
158

Note: Increase resulted from the acquisition of the fractional shares.
3. Stock acquisition rights:
Type

SOFTBANK,
Corp.
Consolidated
Subsidiaries

Detail of stock acquisitionrightsClass of shares

Stock acquisition rights
issued in 2004

CommonstocksNumber of shares for stock acquisition rights(in thousands)
March 31,
March 31,
Increase Decrease
2007
2006
24,000

-

Total

-

24,000Millions of yen
March 31, 2007
3,150

-

30

-

3,180

4. Dividends:(1) Dividend paid
Resolution

Class ofAmount of dividend

Dividend pershares(Millions of yen)share

Ordinary general meeting ofCommonshareholders, June 23, 2006

stocks2,637

Record date

¥2.50

March 31, 2006

Effective dateJune 23, 2006

(2) Dividends which recorded date is in the fiscal year 2007 and effective date for payment is in the fiscal year 2008.
Resolution

Class ofAmount of dividend

Source ofDividend

shares(Millions of yen)

dividend

per share

Ordinary general meeting ofCommonshareholders, June 22, 2007

stocks2,639

37

Retainedearnings¥2.50

Record date

Effective date

March 31, 2007

June 25, 2007

SOFTBANK CORP. CONSOLIDATED FINANCIAL REPORTFor the nine-month period ended December 31, 2007

(Consolidated Statements of Cash Flows)
1. Reconciliation of cash and cash equivalents to the amounts presented in the accompanying consolidated balance sheets
As of December 31, 2006

As of December 31, 2007

As of March 31, 2007

Cash and deposits

394,772

461,001

377,666

Marketable securities

7,022

7,958

8,588

Time deposits with original maturity over three months（2,618）(1,648)(1,989)Stocks and bonds with original maturity over three months（5,753）(7,033)(6,744)

Cash and cash equivalents

393,423 million yen

460,278

million yen

377,520 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 Corp. purchases telecommunications equipment for the purpose of assembly, installation andinspection, SOFTBANK MOBILE Corp. sells the equipment to lease companies for sale and lease back purpose. 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.”38

SOFTBANK CORP. CONSOLIDATED FINANCIAL REPORTFor the nine-month period ended December 31, 2007

(Segment Information)
1. Business segment information(1) For the nine-month period ended December 31, 2006
(Millions of yen; amounts less than one million yen are omitted.)
MobileBroadband

Fixed-line

InternetCommunications

Infrastructure

Telecommunications

Culture¥1,008,538¥192,836¥247,719

6,250

3,480

27,943

1,014,788

196,317

Operating expenses

901,246

Operating income (loss)¥113,541

Elimination

e-Commerce

OthersTotal¥139,110¥178,333¥55,832¥1,822,369

¥-

2,259

11,216

9,871

61,021(61,021)-275,662

141,369

189,549

65,703

1,883,390(61,021)

1,822,369

176,901

277,971

72,014

184,677

69,876

1,682,688(57,604)

1,625,083¥19,415¥(2,308)¥69,354¥4,871¥(4,172)¥200,702¥ (3,417)¥197,285

or Corporate

Consolidated

Net sales(1) Customers(2) Inter-segment
Total¥1,822,369(2) For the nine-month period ended December 31, 2007
(Millions of yen; amounts less than one million yen are omitted.)
MobileBroadband

Fixed-line

InternetCommunications Infrastructure Telecommunications

CultureElimination

e-Commerce

OthersTotal¥184,069¥62,721¥2,058,765¥-

or Corporate

Consolidated

Net sales(1) Customers¥1,212,068¥189,592¥236,279¥174,033

2,058,765

8,523

4,567

35,172

2,891

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

1,220,591

194,160

271,452

176,925

195,10774,963

2,133,201(74,435)

2,058,765

Operating expenses

1,072,611

163,864

269,728

93,145

192,197

78,231

1,869,779(71,202)

1,798,576

Operating income (loss)¥147,980¥30,295¥1,724¥ 83,779¥2,910¥ (3,268)¥263,421¥ (3,232)¥260,188(2) Inter-segment
Total(3) For the fiscal year ended March 31, 2007
(Millions of yen; amounts less than one million yen are omitted.)
MobileBroadband

Fixed-line

InternetCommunications

Infrastructure

Telecommunications

Culture¥1,430,821¥258,824¥332,136

11,218

5,402

41,993Elimination

e-Commerce

OthersTotal¥191,509¥256,923¥74,003¥2,544,219¥-¥2,544,219

2,702

14,647

16,781

92,746(92,746)-or Corporate

Consolidated

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

1,442,040

264,227

374,129

194,212271,570

90,7852,636,966(92,746)2,544,219

Operating expenses

1,286,296

237,418

377,095

97,667

264,889

95,5152,358,883(85,729)

2,273,153

Operating income (loss)¥155,743¥26,809¥(2,965)¥96,544¥6,680¥(4,730)¥278,082¥(7,017)¥271,065

Total

Notes:
1. Business segments are categorized primarily based on the nature of business operations, type of services, and similarity of sales
channels, etc. which the SOFTBANK Group uses for its internal management purpose.
2. Please refer to the chart of “The SOFTBANK Group” for the main businesses segments on the page 17.
3. Unallocated operating expenses for the nine-month periods ended December 31, 2006, December 31, 2007 and for the fiscal year
ended March 31, 2007 in the column “Elimination or Corporate,” mainly represent expenses of the corporate division of theCompany, which totaled ¥3,986 million, ¥4,141 million and ¥8,481 million, respectively.
4. In the Mobile Communications segment, which was established for the fiscal year ended March 31, 2007, net sales and operating
expenses of SOFTBANK MOBILE Corp. and its consolidated subsidiaries were consolidated from May 2006.

39

SOFTBANK CORP. CONSOLIDATED FINANCIAL REPORTFor the nine-month period ended December 31, 2007

(Leases)
1. Finance leases in which the ownership of leased assets is not transferred to lessees at the end of lease periods(as a lessee)(1) Amounts equivalent to acquisition costs, accumulated depreciation, and accumulated impairment loss of leased property for eachperiod:As of December31, 2006

Telecommunications equipment andtelecommunications service lines
Acquisition cost
Accumulated depreciation
Accumulated impairment loss

As of December 31, 2007

As of March 31, 2007

198,797（69,048）

178,848(62,875)

185,251(60,294)（21,703）108,045 million yen(30,521)85,451 million yen(21,703)103,252 million yen

Buildings and structures
Acquisition cost
Accumulated depreciation
Accumulated impairment loss
Net leased property

48,224（5,464）42,759 million yen

47,004(6,834)
40,169 million yen

48,237(6,127)
42,109 million yen

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

20,215（5,753）（1,431）
13,030 million yen

18,381(6,092)(1,255)
11,034 million yen

20,187(6,168)(1,388)
12,630 million yen

Intangible assets
Acquisition cost
Accumulated depreciation
Accumulated impairment loss
Net leased property

10,121（1,802）（247）
8,071 million yen

10,060(3,069)169
6,821 million yen

10,124(2,254)(234)
7,635 million yen

277,359（82,068）（23,383）
171,908 million yen

254,295(78,872)(31,945)
143,476 million yen

263,800(74,846)(23,326)
165,628 million yen

Net leased property

Total
Acquisition cost
Accumulated depreciation
Accumulated impairment loss
Net leased property

Long-term prepaid expenses relating to a lease contract, in which the contract term and payment term are different, for theperiod ended December 31, 2006, December 31, 2007 and for the fiscal year ended March 31, 2007 were ¥6,118 million,¥13,133 million and ¥7,848 million, respectively and are included in “Other assets” of investments and other assets in the
consolidated balance sheets.

(2) Obligations under finance lease at the end of each period:
As of December 31, 2006

As of December 31, 2007

As of March 31, 2007

Due within one year
Due after one year
Total

33,707
170,739
204,447 million yen

32,431
147,141
179,572 million yen

33,088
165,966
199,055 million yen

Balance of allowance for impairment loss
on leased property

19,406 million yen

23,296 million yen

18,170 million yen

40

SOFTBANK CORP. CONSOLIDATED FINANCIAL REPORTFor the nine-month period ended December 31, 2007

(3) Lease payments, reversal of allowance for impairment loss on leased property, amounts equivalent to depreciation ,interest
expense and impairment loss for each period:

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

Nine-month period ended

Nine-month period ended

Fiscal year ended

December 31, 2006

December 31, 2007

March 31, 2007

40,447 million yen

33,784 million yen

52,875 million yen

4,020

3,692

5,256

31,853
10,638-25,151
8,463
8,818

41,52914,086-(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 capital leases,
assuming no residual value except in cases where the residual value is guaranteed in the lease contract.
The amount equivalent to interest expense is calculated by subtracting acquisition costs from the total lease payments andallocated over the lease periods based on the interest method.
(as a lessor)(1) Acquisition cost and accumulated depreciation at the end of each period:
As of December 31, 2006

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

62(62)- million yen

As of December 31, 2007

- million yen

As of March 31, 2007

- million yen(2) The future lease receivables under finance lease at the end of each period:
As of December 31, 2006

Due within one year
Due after one year
Total

- million yen

As of December 31, 2007

- million yen

As of March 31, 2007

- million yen(3) Lease income, depreciation and amount equivalent to interest income under finance lease for each period:

Lease income
Depreciation expense
Interest income

Nine-month period ended

Nine-month period ended

Fiscal year ended

December 31, 2006

December 31, 2007

March 31, 2007

29 million yen
290- million yen-

29 million yen
290(4) Calculation method of amount equivalent to interest income
The amount equivalent to interest income is calculated by subtracting acquisition costs from total lease income andestimated residual value and allocated over the lease periods based on the interest method.

41

SOFTBANK CORP. CONSOLIDATED FINANCIAL REPORTFor the nine-month period ended December 31, 2007

2. Non-cancelable operating lease transactions(as a lessee)
The future lease payments under non-cancelable operating leases at the end of each period:
As of December 31, 2006

Due within one year
Due after one year
Total

11,8104,444
16,254 million yen

As of December 31, 2007

3,759
14,297
18,056 million yen

As of March 31, 2007

9,898
4,386
14,284 million yen(as a lessor)
The future lease receivables under non-cancelable operating leases at the end of each period:
As of December 31, 2006

Due within one year
Due after one year
Total

1,191
1,763
2,954 million yen

42

As of December 31, 2007

1,448
2,136
3,584 million yen

As of March 31, 2007

1,258
1,700
2,958 million yen

SOFTBANK CORP. CONSOLIDATED FINANCIAL REPORTFor the nine-month period ended December 31, 2007

(Investment in Debt and Equity Securities)
1. Marketable and investment securities at fair value(Millions of yen; amounts less than one million yen are omitted.)
As of December 31, 2007
As of March 31, 2007

As of December 31, 2006

(1)
(2)

Equity securities
Other
Total

Investment
Cost

Carrying
AmountDifferences

Investment
Cost

Carrying
AmountDifferences

Investment
Cost

Carrying
AmountDifferences

36,097225
36,323

192,912225
193,138

156,8150
156,81535,925
1,290
37,215

160,724
1,287
162,012

124,798(2)
124,796

40,068
1,100
41,168

231,789
1,100
232,890

191,7210
191,721

2. Carrying amounts of the unlisted investment securities(Millions of yen; amounts less than one million yen are omitted.)
As of December 31, 2006
As of December 31, 2007
As of March 31, 2007

Carrying Amount

Carrying Amount

Carrying Amount

170

700
368

170

119,627
4,669
5,386
1,000
2,000
615
133,469

107,002
6,356
5,618
1,074
1,304
122,423

141,790
5,802
6,053
148
1,000
2,000
618
157,583(1)

Held-to-maturity debt securities:
Foreign debt securities
Debt securities(2) Available-for-sale securities:
Equity securities
Investments in limited partnerships
Money Management Fund
Foreign debt securities
Designated Money Trust
Preferred fund certificate
Other
Total

43

SOFTBANK CORP. CONSOLIDATED FINANCIAL REPORTFor the nine-month period ended December 31, 2007

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) andaccount for the investment securities in accordance with the AICPA Guide.
The carrying amounts of the investment securities at fair value recorded in the consolidated balance sheets at December 31, 2007 andnet changes in fair value of the investment securities, and gain on sale of the investment securities, net recorded as “Unrealized
appreciation on investments and gain on sale of investments at subsidiaries in the U.S., net” in the consolidated statements of income
for the nine-month period ended December 31, 2007 are as follows:
The net changes in the fair value of the investments are recorded as “Unrealized appreciation on investments and gain on sale ofinvestments at subsidiaries in the U.S., net” and gain or loss on sale of investments, computed based on the acquisition cost, is also
included in such account.
Nine-month period ended December 31, 2007 (as of December 31, 2007)
Carrying amounts of investment securities at fair value recorded in consolidated balance sheets:
Net changes in fair value of investment securities recorded in consolidated statements of income:Gain on sale of investment securities, net recorded in consolidated statements of income:

33,039 million yen
4,301 million yen
13,040 million yen

These investment securities were included in Equity securities in “2. Carrying amounts of the unlisted investments securities, (2)Available-for-sale securities” for the fiscal year ended March 31, 2007. Due to the materiality of the amount and for the purpose ofclearly disclosing the investment securities evaluated at fair value, these investments are separately disclosed as “3. Investment
securities evaluated at fair value under the provisions of AICPA Audit and Accounting Guide on Investment Companies.”(For reference)
Carrying amounts of the investment securities at fair value included in Equity securities in “2. Carrying amounts of the unlisted
investments securities, (2) Available-for-sale securities”, net changes in fair value of the investment securities and gain or loss on sale ofthe investments securities, net recorded in the consolidated statements of income are as follows:
Nine-month period ended December 31, 2006 (as of December 31, 2006)
Carrying amounts of investment securities at fair value recorded in consolidated balance sheets:
Net changes in fair value of investment securities recorded in consolidated statements of income:

11,192 million yen
2,474 million yen

Fiscal year ended March 31, 2007 (as of March 31, 2007)
Carrying amounts of investment securities at fair value recorded in consolidated balance sheets: 33,256 million yen
Net changes in fair value of investment securities recorded in consolidated statements of income: 4,935 million yen
Loss on sale of investment securities, net recorded in consolidated statements of income:(2,682) million yen

44