This English translation of the financial report was prepared for reference purposes only and is qualified in its entirety by the original
Japanese version. The financial information contained in this report is derived from our unaudited consolidated financial statements
appearing in item 3 of this report.

SoftBank Corp.
Consolidated Financial Report
For the three-month period ended June 30, 2014 (IFRS)Tokyo, August 8, 2014

1.

Financial Highlights(Millions of yen; amounts are rounded to the nearest million yen)

(1) Results of Operations(Percentages are shown as year-on-year changes)

OperatingincomeNet sales
AmountThree-month period
endedJune 30, 2014
Three-month period
endedJune 30, 2013

Three-month period
endedJune 30, 2014
Three-month period
endedJune 30, 2013%

Amount%Incomebefore incometax
Amount%

Net income

Net income
attributable toowners of theparentTotal
comprehensive
incomeAmountAmountAmount%%%¥1,992,216 126.1 ¥337,632 (15.6) ¥199,471 (44.6) ¥111,308 (58.7) ¥77,574 (68.3) ¥67,889 (80.4)¥881,069

21.4 ¥400,121-¥360,112-

Basic earnings per
share (yen)Diluted earnings per
share (yen)¥65.27¥65.14¥205.09¥204.80¥269,652-¥244,377-¥346,064-

Note:
Year-on-year percentage changes except for net sales for the three-month period ended June 30, 2013 are not described due to theretrospective adjustments in regard to the changes in accounting policies. Please refer to page 29 “Note 2. Significant accounting
policies” under “3. Condensed Interim Consolidated Financial Statements (6) Notes to Condensed Interim Consolidated Financial
Statements” for details.

(2) Financial Position

Total assets

Total equity

Equityattributable toowners of theparentRatio of equity
attributable toowners of the parent
to total assets (%)

As of June 30, 2014

¥16,513,129¥2,864,798¥1,950,433

11.8

As of March 31, 2014¥16,690,127¥2,830,382¥1,930,441

11.6

Note:
Retrospective adjustments in regard to the changes in accounting policies are made for each financial figure as of March, 31 2014.
Please refer to page 29 “Note 2. Significant accounting policies” under “3. Condensed Interim Consolidated Financial Statements(6) Notes to Condensed Interim Consolidated Financial Statements” for details.

2.

Dividends
Dividends per shareFirst quarter
Fiscal year ended
March 31, 2014
Fiscal year ending
March 31, 2015
Fiscal year ending
March 31, 2015
(Forecasted)

Second quarter

Third quarter

Fourth quarter

Total

(yen)

(yen)

(yen)

(yen)

(yen)

-

20.00

-

20.00

40.00

20.00

-

20.00

40.00

-

Note:
Revision of forecasts on the dividends: No

3. Forecasts on the Consolidated Results of Operations for the Fiscal Year Ending March 2015 (April 1, 2014 – March 31, 2015)
The Company projects net sales of ¥8 trillion and operating income of ¥1 trillion under IFRSs in the fiscal year ending
March 31, 2015. The operating income of the fiscal year ended March 31, 2014 of ¥1,077.0 billion (after retrospective
adjustments) includes gain from remeasurement relating to business combination of ¥253.9 billion. The forecasted
operating income of the fiscal year ending March 31, 2015 of ¥1 trillion does not include any temporary gains.

* Notes(1) Significant changes in scope of consolidation (changes in scope of consolidation of specified subsidiaries): No(2) Changes in accounting policies and accounting estimate[1] Changes in accounting policies required by IFRSs: Yes[2] Changes in accounting policies other than those in [1]: No[3] Changes in accounting estimates: No
Please refer to page 21 “Changes in Accounting Policies and Accounting Estimates” under “2. Notes to Summary Information”
for details.

(3) Number of shares issued (common stock)[1] Number of shares issued (including treasury stock):
As of June 30, 2014:
1,200,660,365 shares
As of March 31, 2014:
1,200,660,365 shares[2] Number of treasury stock:
As of June 30, 2014:12,148,805 shares
As of March 31, 2014:12,204,526 shares[3] Number of average stocks during three-month period (April-June):
As of June 30, 2014:
1,188,481,740 shares
As of June 30, 2013:
1,191,533,038 shares* Implementation status of interim review proceduresThis interim consolidated financial report is not subject to interim review procedures based on the Financial Instruments andExchange Act, and the review procedures for the condensed interim consolidated financial statements were being conductedwhen this report was disclosed.
* Note to forecasts on the consolidated results of operations and other items
The Company has adopted IFRSs from the three-month period ended June 30, 2013.
The forecast figures are estimated based on the information that the Company is able to obtain at the present point andassumptions which are deemed to be reasonable. However, actual results may be different due to various factors.
On August 8, 2014, the Company will hold an earnings results briefing for financial institutions, institutional investors, and the
media.
This earnings results briefing will be broadcast live on our website in both Japanese and English(http://www.softbank.jp/en/corp/irinfo/). The Earnings Results Data Sheets will also be posted on the Company’s web sitearound 4 p.m. on the day of the announcement: (http://www.softbank.jp/en/corp/irinfo/presentations/)

SoftBank Corp. Consolidated Financial Report
For the three-month period ended June 30, 2014

(Appendix)

Contents
1. Qualitative Information Regarding Three-month Period Results ......................................................................

P. 3(1) Qualitative Information Regarding Consolidated Results of Operations .....................................................

P. 3

a. Consolidated Results of Operations ........................................................................................................

P. 3

b. Results by Segment .................................................................................................................................

P. 6(Reference 1: Principal Operational Data) ............................................................................................. P. 10(Reference 2: Definition and Calculation Method of Principal Operational Data) ................................ P. 12(Reference 3: Capital Expenditure and Depreciation) ........................................................................... P. 13(2) Qualitative Information Regarding Consolidated Financial Position ......................................................... P. 14
a. Assets, Liabilities and Equity .................................................................................................................. P. 14
b. Cash Flows ............................................................................................................................................. P. 19(3) Qualitative Information Regarding Forecast on Consolidated Results of Operations ................................. P. 20
2. Notes to Summary Information ........................................................................................................................... P. 21
Changes in Accounting Policies and Accounting Estimates ............................................................................. P. 21
3. Condensed Interim Consolidated Financial Statements ..................................................................................... P. 22(1) Condensed Interim Consolidated Financial Statements of Financial Position ............................................. P. 22(2) Condensed Interim Consolidated Statements of Income and Other Comprehensive Income ...................... P. 24(3) Condensed Interim Consolidated Statements of Changes in Equity ............................................................ P. 26(4) Condensed Interim Consolidated Statements of Cash Flows ....................................................................... P. 28(5) Significant Doubt about Going-Concern Assumption ................................................................................. P. 29(6) Notes to Condensed Interim Consolidated Financial Statements ................................................................. P. 29

Company Names and Abbreviations used in this Appendix
Company names and abbreviations used in the notes, except as otherwise stated or interpreted differently in thecontext, are as follows:
Company Name/Abbreviation

Definition“SoftBank Corp.”

SoftBank Corp. (stand-alone basis)

The “Company”

SoftBank Corp. and its subsidiaries* Each of the following company names and abbreviations indicates the respective company, and its subsidiaries if
any.
“Sprint”

Sprint Corporation (formerly Sprint Nextel Corporation)“Brightstar Corp.”

Brightstar Corp.

“GungHo”

GungHo Online Entertainment, Inc.

“Supercell”

Supercell Oy“Alibaba”

Alibaba Group Holding Limited1

SoftBank Corp. Consolidated Financial Report
For the three-month period ended June 30, 2014

Changes in Major Subsidiaries (in the fiscal year ended March 31, 2014 and the three-month period
ended June 30, 2014)
Period of consolidation
Date of change

Fiscal YearEndingMarch 31,2015

Fiscal Year Ended March 31, 2014

Three-month
Period Ended
June 30, 2013

Three-month
Period Ended
September 30,
2013

Three-month
Period Ended
December 31,
2013

Three-month
Period Ended
March 31,2014

Three-month
Period Ended
June 30, 2014

Q1

Q2

Q3

Q4

Q1

Mobile Communications
Segment
GungHo Online
Entertainment, Inc.

(Consolidated on April 1)(Merged by eAccess Ltd. on June 1)

Ymobile Corporation(formerly eAccessLtd.) (Note1)
WILLCOM, Inc.

(Consolidated on July 1)

Supercell Oy(Consolidated on October 31)

Brightstar Corp.(Note 2)(Consolidated on January 30)

Sprint Segment

Sprint Corporation(Consolidated on July 10)

Notes:
1. eAccess Ltd. changed its company name to Ymobile Corporation on July 1, 2014. eAccess Ltd. merged with
WILLCOM, Inc. on June 1, 2014. The fixed-line telecommunications business of Ymobile Corporation is included in
the Fixed-line Telecommunications segment.
2. The commerce and service business of SoftBank BB Corp. has been included in the Mobile Communications segment.
This business was inherited by SoftBank Commerce & Service Corp., which was newly incorporated on April 1, 2014,
and SoftBank Commerce & Service Corp. was consolidated by Brightstar Corp. on the same date.

2SoftBank Corp. Consolidated Financial Report
For the three-month period ended June 30, 2014

1. Qualitative Information Regarding Three-month Period Results(1) Qualitative Information Regarding Consolidated Results of Operations
a. Consolidated Results of Operations(Millions of yen)Three-month Period
Ended June 30,
2013(Note 3)

Three-month Period
Ended June 30,
2014

Net sales

881,069

Operating income

ChangeChange %1,992,216

1,111,147

126.1%

400,121337,632(62,489)(15.6%)(Incl.)
Gain from remeasurement
relating to businesscombination

150,120-(150,120)-%

Income before income tax

360,112

199,471(160,641)(44.6%)Net income
Net income attributable toowners of the parent

269,652

111,308(158,344)(58.7%)

244,377

77,574(166,803)(68.3%)

Note:
3. Retrospective adjustments are made in accordance with the adoption of IFRIC 21 “Levies.” Please refer to page 29“2. Significant accounting policies” under “3. Condensed Interim Consolidated Financial Statements, (6) Notes toCondensed Interim Consolidated Financial Statements” for details on the retrospective adjustments.

The main factors affecting earnings for the three-month period ended June 30, 2014 (the “period”) were as follows:(a) Net Sales
Net sales totaled ¥1,992,216 million, for a ¥1,111,147 million (126.1%) increase from the three-month period
ended June 30, 2013 (the “same period of the previous fiscal year”).

This was mainly due to the consolidationof Sprint, Brightstar Corp., Supercell, and WILLCOM, Inc. (currently Ymobile Corporation) in or after the threemonth period ended September 30, 2013 (the “second quarter of the previous fiscal year”).

At SoftBank Mobile

Corp., sales declined as product sales decreased on a lower number of handsets shipped, 1 although service
revenue continued to increase.

(b) Cost of Sales
Cost of sales increased ¥741,307 million (182.1%) year on year to ¥1,148,502 million.
to the impact of consolidating Sprint and Brightstar Corp.

This was primarily due

At SoftBank Mobile Corp., cost of sales declined due

to a decrease in the cost of goods.

(c) Selling, General and Administrative Expenses
Selling, general and administrative expenses increased by ¥283,756 million (127.3%) year on year to ¥506,657
million.

1

This was primarily due to the consolidation of Sprint.

Handsets shipped: the number of handsets shipped (sold) to dealers.
SoftBank Mobile Corp. and the SoftBank ONLINE SHOP.

At SoftBank Mobile Corp., selling, general andIncludes the number of handsets sold to customers at stores operated by

3

SoftBank Corp. Consolidated Financial Report
For the three-month period ended June 30, 2014

administrative expenses declined due to a decrease in sales commissions accompanying the lower number of units
sold 2 and other factors.

(d) Gain from Remeasurement Relating to Business Combination
During the period, no gain from remeasurement relating to business combination was recorded.

In the same

period of the previous fiscal year, the Company recorded a gain of ¥150,120 million recognized following
reevaluation at fair value of its equity interest in GungHo that it already held on the date when the Company
acquired control.

(e) Other Operating Income and Loss
Other operating income was ¥575 million, an improvement of ¥1,547 million year on year (other operating lossof ¥972 million was recorded in the same period of the previous fiscal year).

(f) Operating Income
As a result of (a) to (e), operating income totaled ¥337,632 million, for a ¥62,489 million (15.6%) year-on-year
decrease.

The decline reflected the absence of gain from remeasurement relating to business combination of¥150,120 million recorded in the same period of the previous fiscal year, although income was recorded inconjunction with the consolidation of Sprint and Supercell and operating income increased at SoftBank Mobile
Corp.

When comparing the amount obtained after discounting the gain from remeasurement relating to businesscombination from operating income for the period and the same period in the previous fiscal year, the amount forthe period was ¥87,631 million (35.1%) higher.

(g) Finance Cost
Finance cost rose ¥57,604 million (210.4%) year on year to ¥84,987 million.

The increase was mainly due tothe impact of adding the interest expense of Sprint.

(h) Equity in Income and Loss of Associates
Equity in loss of associates was ¥63,425 million, a deterioration of ¥62,342 million year on year (equity in lossof associates of ¥1,083 million was recorded in the same period of the previous fiscal year).
was recording equity in loss of associates of ¥65,285 million relating to Alibaba.

The main reason

Regarding the Convertible

3

Preference Shares issued by Alibaba, the amount is recorded under mezzanine equity at the amount paid inaccordance with U.S. GAAP adopted by Alibaba, whereas under IFRSs the amount is recorded as a liability andmeasured at fair value, with fluctuations in the fair value recognized as net profit or loss.

During the period, theportion of increase in the fair value 4 of the Convertible Preference Shares attributable to the Company amounting

2

Units sold: the total number of new subscriptions and handset upgrades.
Alibaba submitted a registration statement (the “Registration Statement,” including revisions thereto) to the U.S. Securities and Exchange
Commission. The Registration Statement states that Alibaba is preparing to list its stock on the New York Stock Exchange, and that
concurrently with the completion of the public offering, the outstanding Convertible Preference Shares issued by Alibaba will be automaticallyconverted into 91,243,243 ordinary shares.
4
The Registration Statement states that the fair value of Alibaba’s ordinary shares became US$25.00 per share in the fourth calendar quarter of2013 and US$56.00 per share in June 2014.
3

4

SoftBank Corp. Consolidated Financial Report
For the three-month period ended June 30, 2014

to ¥102,996 million impacted the Company’s equity in income and loss of associates by a loss.
Moreover, when the Convertible Preference Shares are automatically converted into ordinary shares upon thepending completion of the public offering, the Convertible Preference Shares recorded under liabilities will bereclassified to equity under IFRSs.

Of the loss recorded as a result of the increase in fair value of the Convertible

Preference Shares up until the completion of the public offering, the portion attributable to the Company will berecorded as dilution gain in the Company’s consolidated statements of income, upon the completion of the public
offering.

(i) Other Non-operating Income and Loss
Other non-operating income was ¥10,251 million, an improvement of ¥21,794 million year on year (other nonoperating loss of ¥11,543 million was recorded in the same period of the previous fiscal year).
・ Derivative loss was ¥1,542 million, improving by ¥27,897 million year on year.
・ Interest income decreased ¥16,347 million year on year to ¥989 million.
・ Gain from remeasurement relating to applying equity method of ¥6,249 million was recorded (notrecorded in the same period of the previous fiscal year).
Please refer to page 42 “11. Other non-operating income and loss” under “3. Condensed Interim Consolidated
Financial Statements (6) Notes to Condensed Interim Consolidated Financial Statements” for details.

(j) Income before Income Tax
As a result of (f) to (i), income before income tax was ¥199,471 million, a decrease of ¥160,641 million (44.6%)
year on year.

(k) Income Taxes
Provisions for current income taxes were ¥88,163 million, a decrease of ¥2,297 million (2.5%) year on year.

(l) Net Income
As a result of (j) to (k), net income totaled ¥111,308 million, for a ¥158,344 million (58.7%) year-on-year decrease.

(m) Net Income Attributable to Owners of the Parent
After deducting net income and loss attributable to non-controlling interests in subsidiaries such as Yahoo Japan
Corporation and GungHo from (l), net income attributable to owners of the parent was ¥77,574 million, for a¥166,803 million (68.3%) decrease year on year.

(n) Comprehensive Income
Comprehensive income totaled ¥67,889 million, for a ¥278,175 million (80.4%) year-on-year decrease.

Of this,comprehensive income attributable to owners of the parent was ¥43,778 million, for a ¥277,847 million (86.4%)
year-on-year decrease.

5SoftBank Corp. Consolidated Financial Report
For the three-month period ended June 30, 2014b. Results by Segment
The Company’s reportable segments are components of business activities for which decisions on resource allocation
and assessment of performance are made.

The Company has four reportable segments: “Mobile Communications,”“Sprint,” “Fixed-line Telecommunications,” and “Internet.”

In the Mobile Communications segment, SoftBank Mobile Corp. and other companies provide mobile
communications services and sale of mobile devices and accessories, etc., while GungHo and Supercell produce
and distribute online games for smartphones and other devices.
In the Sprint segment, Sprint provides mobile communications services in the U.S. and sale of mobile devices
and accessories accompanying the services, as well as fixed-line telecommunications services.
In the Fixed-line Telecommunications segment, SoftBank Telecom Corp. provides telecommunication services
such as fixed-line telephone and data communications services to corporate customers, while SoftBank BB Corp.
and other companies provide broadband services for individual customers.
In the Internet segment, Yahoo Japan Corporation provides Internet-based advertising operations and other services.

Main businesses and core companies of each reportable segment are as follows.
Segments

MobileCommunications

Main Businesses

Core Companies

・Provision of mobile communications services inJapan・Sale of mobile devices and accessories
・Sale of PC software and peripherals
・Production and distribution of online games for
smartphones and other devices

SoftBank Mobile Corp.
Ymobile Corporation
Wireless City Planning Inc.
Brightstar Corp.
SoftBank Telecom Corp.
GungHo Online Entertainment, Inc.
Supercell Oy

Sprint・Provision of mobile communications services by Sprint Corporation
Sprint in the U.S.
・Sale of mobile devices and accessories
accompanying the above services
・Provision of fixed-line telecommunications
services by Sprint

Fixed-line
Telecommunications

・Provision of telecom services such as fixed-line
telephone and data communications services todomestic corporate customers
・Provision of broadband services to domestic
individual customers
・Services accompanying the above services

SoftBank Telecom Corp.
SoftBank BB Corp.
Ymobile Corporation
Yahoo Japan Corporation

・Internet advertising・e-commerce business・Membership services

Yahoo Japan Corporation

Internet・Fukuoka SoftBank HAWKS related businesses

Fukuoka SoftBank HAWKS Corp.

Reportable
Segments

Others

Notes:
4. The Sprint segment was established in the second quarter of the previous fiscal year in conjunction with the consolidation of
Sprint.
5. Income of reportable segments is based on income from operating income, excluding “Gain from remeasurement relating tobusiness combination” and “Other operating income (loss),” as follows:
Segment income = (net sales – cost of sales – selling, general and administrative expenses) in each segment

6SoftBank Corp. Consolidated Financial Report
For the three-month period ended June 30, 2014(a) Mobile Communications Segment(Millions of yen)Three-month Period
Ended June 30, 2013

Three-month Period
Ended June 30, 2014

Net sales

661,918

882,901

220,983

33.4%

Segment income

180,859

207,890

27,031

14.9%

ChangeChange %< Overview of Operations >The segment’s net sales increased by ¥220,983 million (33.4%) year on year to ¥882,901 million.

The mainfactor behind the increase was the impact of consolidation of Brightstar Corp., Supercell and WILLCOM, Inc.
(currently Ymobile Corporation).

At SoftBank Mobile Corp., sales declined as product sales decreased on alower number of handsets shipped although service revenue continued to increase.
Segment income increased by ¥27,031 million (14.9%) year on year to ¥207,890 million. The principal causeof this increase was a decrease in cost of goods and sales commissions at SoftBank Mobile Corp. mainly due to alower number of handsets shipped and units sold. Recording of income of Supercell in conjunction with its
consolidation also contributed to this increase.
< Overview of Business Operations >・Number of Subscribers
The cumulative number of subscribers at SoftBank Mobile Corp. as of June 30, 2014 (the “end of the period”)
stood at 36,482,000.

Net subscriber additions (new subscriptions minus churn) for the period at SoftBank

Mobile Corp. totaled 557,000.

This was primarily the result of solid trends in subscriber numbers, especiallyfor smartphones and tablets, communication modules and other items.

・ARPU
ARPU 5 at SoftBank Mobile Corp. for the period, decreased by ¥180 year on year to ¥4,280. Out of this, data
ARPU rose ¥90 year on year to ¥2,960. The decline in ARPU mainly reflects an increase in low-ARPU devices
and a decline in voice calls using voice devices. Meanwhile, the growth in the number of LTE subscriptions, withrelatively higher data communication charges compared to 3G subscriptions, contributed to the increase in data
ARPU.

・Number of Units Sold
The number of units sold at SoftBank Mobile Corp. for the period decreased by 490,000 year on year to 2,533,000.
The decrease was primarily due to a decline in the number of upgrades, although new subscriptions were about
the same level year on year.

The decline in the number of upgrades was mainly due to prolonged use of mobile

devices and the impact of sales promotions 6 stimulating upgrades that were offered in the same period of the5

For definitions and calculations of ARPU, churn and upgrade rates at SoftBank Mobile Corp., see page 12 “(Reference 2: Definition andCalculation Method of Principal Operational Data) (a) SoftBank Mobile Corp.”
6
A promotion offering points to customers who upgraded between eligible handsets and discounts to customers who upgraded to eligible handsets.

7

SoftBank Corp. Consolidated Financial Report
For the three-month period ended June 30, 2014previous fiscal year.
・Churn Rate and Upgrade Rate
The churn rate5 at SoftBank Mobile Corp. for the period was 1.11%, up 0.12 of a percentage point year on year.
This was mainly due to an increase in churn for non-voice devices reaching the end of their two-year subscriptions.
The upgrade rate5 was 0.71%, down 0.54 of a percentage point year on year.

The decline in the upgrade rate

was mainly due to prolonged use of mobile devices and the impact of sales promotions stimulating upgrades thatwere offered in the same period of the previous fiscal year.
(b) Sprint Segment(Millions of yen)Three-month Period
Ended June 30, 2013
Net sales
Segment income

Three-month Period
Ended June 30, 2014

Segment was newly
established from thesecond quarter of the
fiscal year ended
March 31, 2014

ChangeChange %897,737

897,737-%

61,70561,705-%< Overview of Operations >This mainly includes Sprint platform 7 service revenue and

The segment’s net sales totaled ¥897,737 million.
product sales.
Segment income totaled ¥61,705 million.

Operating expenses included ¥40,718 million of amortization ofcustomer relationships (amortized based on the sum-of-the-digits method) recorded at Sprint’s consolidation.
< Overview of Business Operations >Subscribers at Sprint decreased by 334,000 in the period and the cumulative number of subscribers as of the end of
the period stood at 54,553,000.
Of these, on the Sprint platform there was a net decrease of 220,000, bringing its cumulative number ofsubscriptions to 53,331,000 as of the end of the period. The decrease was due to a decline of 542,000 in the numberof prepaid subscribers, mainly from the impact of customers who did not complete the annual recertification of theLifeline Assistance Program. 8
Sprint platform ARPU 9 for the period was US$62.07 for postpaid and US$27.38 for prepaid, and its churnrate9 was 2.05% for postpaid and 4.44% for prepaid.

7

Sprint-operated CDMA and LTE networks.
A program where carriers in the U.S. receive a subsidy from a government fund to provide discounted services to low-income subscribers.
9
For definitions and calculations of ARPU and churn rate of Sprint platform, see page 12 “(Reference 2: Definition and Calculation Method of
Principal Operational Data) (b) Sprint Platform.”
88

SoftBank Corp. Consolidated Financial Report
For the three-month period ended June 30, 2014(c) Fixed-line Telecommunications Segment(Millions of yen)Three-month Period
Ended June 30, 2013

Three-month Period
Ended June 30, 2014

Net sales

133,406

131,836(1,570)(1.2%)

Segment income

28,63526,717(1,918)(6.7%)

ChangeChange %< Overview of Operations >The segment’s net sales decreased by ¥1,570 million (1.2%) year on year to ¥131,836 million.
Segment income decreased by ¥1,918 million (6.7%) year on year to ¥26,717 million.

This was mainly due

to a decrease in net sales as well as an increase in costs relating to network construction for corporate
communication services at SoftBank Telecom Corp.
(d) Internet Segment(Millions of yen)Three-month Period
Ended June 30, 2013

Three-month Period
Ended June 30, 2014

Net sales

96,19896,858660

0.7%

Segment income

46,76245,483(1,279)(2.7%)

ChangeChange %<Overview of Operations>
The segment’s net sales increased by ¥660 million (0.7%) year on year to ¥96,858 million.

The increase was

the result of growth in advertising revenue at Yahoo Japan Corporation, especially from display advertising, 10
although its new e-commerce business strategy including eliminating monthly store tenant and other fees caused
a decrease.
Segment income decreased by ¥1,279 million (2.7%) year on year to ¥45,483 million.

This decrease wasmainly caused by a decline in sales in the e-commerce business at Yahoo Japan Corporation in addition to its
increased sales promotion expenses related to the e-commerce business and outsourcing fees, and other costs.

10

Graphical, Flash®, and video advertising that appears on a certain defined area. Includes premium advertisements such as Brand Panel shown
on Yahoo! JAPAN’s top page, and Yahoo! Display Ad Network (YDN), which shows advertisements most suitable to the user based on the content
the user is viewing and their interests, attributes, and geographical location.

9

SoftBank Corp. Consolidated Financial Report
For the three-month period ended June 30, 2014

(Reference 1: Principal Operational Data)(a) Mobile Communications Segment
Fiscal YearEnding March
31, 2015

Fiscal Year Ended March 31, 2014

Three-month
Period Ended
June 30, 2013

Three-month
Period Ended
Sept. 30, 2013

Three-month
Period Ended
Dec. 31, 2013

Q1

Q2

Q3

33,29034,06834,76035,92536,482

9,542

9,725

9,899

10,011

10,002

5,199

5,310

5,403

5,546

5,516

Net additions11

810

778

692

1,165

3,445

557

Postpaid

818

790

716

1,202

3,526

591

Prepaid

-8

-12

-24

-36

-81

-34

4,460

4,520

4,490

4,340

4,450

4,280

2,870

2,930

2,960

2,970

2,930

2,960

2,575

2,734

3,347

3,377

12,033

1,769

3,023

3,150

3,713

4,289

14,1752,533

New subscriptions

1,790

1,904

2,015

2,921

8,629

1,761

Handset upgrades

1,233

1,246

1,698

1,368

5,546

772

Churn rate14

0.99

1.12

1.28

1.66

1.27

1.11

Postpaid

0.94

1.06

1.24

1.63

1.22

1.07

1.25

1.23

1.64

1.30

1.36

0.71

Three-monthFiscal Year
Period Ended
Ended
March 31, 2014 March 31, 2014
Full Year

Q4

Three-month
Period Ended
June 30, 2014
Q1

Cumulative
subscribers(Thousands)

SoftBank Mobile
Corp. 11
YmobileCorporation 12,13(Incl.) PHS(Thousands)(¥ / month)

SoftBank Mobile Corp.

ARPU 14, 15(Incl.) Data
(Thousands)

Handsets shipped 16(Thousands)

Units sold 17(% / month)(% / month)

Upgrade rate14

11

Includes the number of prepaid mobile phones and communication module service subscribers. The communication module service
subscriber’s net additions for the period were 194,000 and the cumulative number at the end of the period totaled 4,028,000.
12
eAccess Ltd. changed its company name to Ymobile Corporation on July 1, 2014. eAccess Ltd. merged with WILLCOM, Inc. on June 1, 2014.
13
Includes the number of prepaid mobile phones and communication module service subscribers. The number of subscribers for the services
provided by Ymobile Corporation under the “Y!mobile” (formerly “EMOBILE” or “WILLCOM”) brand utilizing the communication network of
SoftBank Mobile Corp. is not included.
14
For definition and calculation method of ARPU, churn and upgrade rates at SoftBank Mobile Corp., see page 12 “(Reference 2: Definition andCalculation Method of Principal Operational Data) (a) SoftBank Mobile Corp.”
15
ARPU in the fourth quarter of each fiscal year includes impact from revision of interconnection charges.
16
Handsets shipped: the number of handsets shipped (sold) to dealers. Includes the number of handsets sold to customers at stores operated by
SoftBank Mobile Corp. and the SoftBank ONLINE SHOP.
17
Units sold: the total number of new subscriptions and handset upgrades.

10SoftBank Corp. Consolidated Financial Report
For the three-month period ended June 30, 2014(b) Sprint Segment
Fiscal YearEnding March
31, 2015

Fiscal Year Ended March 31, 2014
Three-month
Period Ended
June 30, 2013

Three-month
Period Ended
Sept. 30, 2013

Three-month
Period Ended
Dec. 31, 2013

Three-month
Period Ended
March 31, 2014

Fiscal Year Ended
March 31, 2014

Three-month
Period Ended
June 30, 2014

Q1

Q2

Q3

Q4

Full Year

Q1

Sprint total

53,58854,87755,35454,88754,553

Sprint platform

53,37653,25253,93453,55153,331

Postpaid

30,45130,09130,14929,91829,737

Prepaid

15,215

15,29915,621

15,257

14,715Wholesale &affiliate

7,710

7,862

8,164

8,376

8,879

U.S. Cellular &Clearwire 19

212

1,625

1,420

1,336

1,222

Net additions18

-520

-95

682

-383

-220

Postpaid

194

-360

58

-231

-181

Prepaid

-486

84

322

-364

-542

Wholesale &affiliate

-228

181

302

212

503

Postpaid

64.20

64.28

64.11

63.52

62.07

Prepaid

26.96

25.33

26.78

26.45

27.38

Postpaid

1.83

1.99

2.07

2.11

2.05

Prepaid

5.22

3.57

3.01

4.33

4.44

Cumulative Subscribers 18(Thousands)

Sprint platform(Thousands)(US$ / month)

ARPU 20(% / month)

Churn rate20

18

Includes the number of communication module service subscribers.
Sprint acquired 411,000 subscribers (352,000 postpaid subscribers and 59,000 prepaid subscribers) through the acquisition of assets from U.S.
Cellular Corporation (“U.S. Cellular”) in conjunction with its acquisition of U.S. Cellular when the transaction closed on May 17, 2013. Sprint
also acquired 1,602,000 subscribers (788,000 postpaid subscribers, 721,000 prepaid subscribers, and 93,000 wholesale subscribers), in
conjunction with its acquisition of Clearwire Corporation (“Clearwire”) when the transaction closed on July 9, 2013, and transferred 29,000
Sprint wholesale subscribers relating to a Clearwire MVNO arrangement that were originally recognized on the Sprint platform, to this category.
20
For definition and calculation of ARPU and churn rate of Sprint platform, see page 12 “(Reference 2: Definition and Calculation Method of
Principal Operational Data) (b) Sprint Platform.”
19

11

SoftBank Corp. Consolidated Financial Report
For the three-month period ended June 30, 2014

(Reference 2: Definition and Calculation Method of Principal Operational Data)(a) SoftBank Mobile Corp.
i. ARPU
ARPU: Average Revenue Per User per month (rounded to the nearest ¥10)
ARPU = (data-related revenue + basic monthly charge, voice-related revenues, etc.) / number of active subscribers
Data ARPU = data-related revenue / number of active subscribers
Number of active subscribers: the total of the monthly numbers of active subscribers for the relevant period((subscribers at the beginning of the month + subscribers at the end of the month) / 2)
Data-related revenue: packet communication and flat-rate charges, basic monthly Internet connection charges,
content-related revenues, etc.
Basic monthly charge and voice-related revenues: basic monthly usage charges, voice call charges, revenues from incoming
calls, device warrantee services, advertising, etc.
Revenues from incoming calls: interconnection charges received from other operators for voice calls from their customers on
their network to SoftBank Mobile phones as a charge for the services provided in the
SoftBank Mobile Corp. service area.
(Calculation of ARPU excludes subscribers and revenues related to communication modules)

ii. Churn rate
Churn rate = number of churn / number of active subscribers (rounded to the nearest 0.01%)
Number of churn: the total number of subscribers that churned during the relevant period
Number of active subscribers: the total of the monthly numbers of active subscribers for the relevant period((subscribers at the beginning of the month + subscribers at the end of the month) / 2)iii. Upgrade rate
Upgrade rate = number of upgrades / number of active subscribers (rounded to the nearest 0.01%)
Number of upgrades: the total number of upgrades during the relevant period
Number of active subscribers: the total of the monthly numbers of active subscribers for the relevant period((subscribers at the beginning of the month + subscribers at the end of the month) / 2)(b) Sprint Platform
i. ARPU
ARPU: Average Revenue Per User per month (rounded to the nearest US$.01)
ARPU = service revenue / number of active subscribers
Number of active subscribers: the total of the monthly numbers of active subscribers for the relevant period((subscribers at the beginning of the month + subscribers at the end of the month) / 2)

ii. Churn rate
Churn rate = number of deactivations / number of active subscribers (rounded to the nearest 0.01%)
Deactivations: the total number of subscribers that churned during the relevant period. The number of deactivations excludes
the number of subscribers who switch between prepaid and postpaid.
Number of active subscribers: the total of the monthly numbers of active subscribers for the relevant period((subscribers at the beginning of the month + subscribers at the end of the month) / 2)

12

SoftBank Corp. Consolidated Financial Report
For the three-month period ended June 30, 2014

(Reference 3: Capital Expenditure and Depreciation)(a) Capital Expenditure (acceptance basis)(Millions of yen)
Fiscal YearEnding March
31, 2015

Fiscal Year Ended March 31, 2014

MobileCommunications
Segment

Three-month
Period Ended
June 30, 2013

Three-month
Period Ended
Sept. 30, 2013

Three-month
Period Ended
Dec. 31, 2013

Q1

Q2

Q3

Q4

163,581

164,563

170,469

180,347

678,960

123,186

163,574

208,733

91,969464,276

148,793SprintSegment (Note 6)

Three-monthFiscal Year
Period Ended
Ended
March 31, 2014 March 31, 2014
Full Year

Three-month
Period Ended
June 30, 2014
Q1

Fixed-line
Telecommunications Segment

9,903

16,74313,091

20,73160,4689,946Internet Segment

4,393

2,746

9,194

9,706

26,0398,534

Others

2,835

4,694

3,082

4,896

15,507

5,552

180,712352,320

404,569

307,649

1,245,250

296,011

Consolidated total(b) Depreciation and Amortization(Millions of yen)
Fiscal YearEnding March
31, 2015

Fiscal Year Ended March 31, 2014

MobileCommunications
Segment

Three-month
Period Ended
June 30, 2013

Three-month
Period Ended
Sept. 30, 2013

Three-month
Period Ended
Dec. 31, 2013

Three-monthFiscal Year
Period Ended
Ended
March 31, 2014 March 31, 2014

Q1

Q2

Q3

Q4

83,367

92,228100,205

119, 184

394,984

106,600

134,191

152,411

131,859

418,461

128,621

Full Year

Three-month
Period Ended
June 30, 2014
Q1

SprintSegment (Note 6)
Fixed-line
Telecommunications Segment

14,80914,91815,402

16,94862,077

13,939Internet Segment

3,221

3,218

3,700

5,230

15,369

3,543

Others

1,902

2,085

2,329

2,697

9,013

2,298

Consolidated total
103,299
246,640
274,047
275,918
899,904
255,001
Note:
6. The Sprint segment was established in the second quarter of the previous fiscal year in conjunction with the consolidation of
Sprint. The amounts of capital expenditure and depreciation and amortization of the Sprint segment have been reflected since
July 11, 2013.

13

SoftBank Corp. Consolidated Financial Report
For the three-month period ended June 30, 2014

(2) Qualitative Information Regarding Consolidated Financial Positiona. Assets, Liabilities and Equity
Assets, liabilities and equity at the end of the period were as follows:(Millions of yen)

As ofMarch 31, 2014(Note 7)

As ofJune 30, 2014

ChangeChange %Total assets

16,690,127

16,513,129(176,998)(1.1%)

Total liabilities

13,859,745

13,648,331(211,414)(1.5%)

Total equity

2,830,382

2,864,798

34,416

1.2%

Note:
7. Retrospective adjustments are made in accordance with the adoption of IFRIC 21 “Levies.” Please refer to page 29, “2.
Significant accounting policies” under “3. Condensed Interim Consolidated Financial Statements, (6) Notes to Condensed
Interim Consolidated Financial Statements” for details on the retrospective adjustments.

(a) Current Assets(Millions of yen)

As ofMarch 31, 2014

Item
Cash and cash equivalents

As ofJune 30, 2014

Change1,963,490

1,902,452(61,038)

511,562

422,792(88,770)

1,669,545

1,613,536(56,009)

370,564

379,242

8,678

Other financial assets

164,727

185,658

20,931Inventories

251,677

300,11248,435

Other current assets

281,535

303,852

22,317

Total current assets

4,330,974

4,305,610(25,364)

SprintTrade and other receivables
SprintCurrent assets totaled ¥4,305,610 million, for a ¥25,364 million (0.6%) decrease from March 31, 2014 (the“previous fiscal year-end”).

The primary components of the change were as follows:

・ Cash and cash equivalents totaled ¥1,902,452 million, for a ¥61,038 million decrease from the previous fiscal
year-end.
・ Trade and other receivables totaled ¥1,613,536 million, for a ¥56,009 million decrease from the previous fiscal
year-end.
end.

This was mainly due to an increase in accounts receivable from dealers at the previous fiscal year-

This temporary increase was driven by an increase in the number of mobile handsets shipped at SoftBank

Mobile Corp. in the three-month period ended March 31, 2014 (the “fourth quarter of the previous fiscal year”),
due to the impact of competition to win customers under Mobile Number Portability (“MNP”).
・ Inventories totaled ¥300,112 million, for a ¥48,435 million increase from the previous fiscal year-end.

14

SoftBank Corp. Consolidated Financial Report
For the three-month period ended June 30, 2014(b) Non-current Assets(Millions of yen)

As ofMarch 31, 2014

Item

As of
June 30, 2014

ChangeProperty, plant and equipment

3,586,327

3,636,084

49,757

Sprint1,472,679

1,505,559

32,8801,539,607

1,530,965(8,642)286,258

280,056(6,202)

6,177,701

6,032,465(145,236)

5,303,382

5,158,375(145,007)

3,709,526

3,631,653(77,873)

3,709,526

3,631,653(77,873)

677,494

622,417(55,077)

579,885

530,688(49,197)

675,450

665,003(10,447)

663,150

652,705(10,445)

Software647,386

670,169

22,783

Game titles

166,522

151,443(15,079)

Others301,323

291,780(9,543)

Investments accounted forusing the equity method

304,318

257,386(46,932)

Other financial assets

401,693

420,500

18,807

Deferred tax assets

182,246

159,701(22,545)

Other non-current assets

167,261

170,418

3,157

Total non-current assets

12,359,153

12,207,519(151,634)

Goodwill
SprintIntangible assets
Sprint
FCC licenses 21
SprintCustomer relationships
SprintTrademarks
SprintNon-current assets totaled ¥12,207,519 million, for a ¥151,634 million (1.2%) decrease from the previous fiscal
year-end.

The main reason for the change was a ¥145,236 million decline in intangible assets from the previous

fiscal year-end.

This decrease was caused by a decline in FCC licenses (non-amortized assets from an

accounting perspective) of ¥77,873 million mainly due to the impact of the yen appreciating against the U.S.
dollar as of the end of the period compared with the previous fiscal year-end, as well as declines of ¥55,077
million in customer relationships and ¥15,079 million in game titles, both due to regular amortization and otherfactors.

21

Licenses issued by the U.S. Federal Communications Commission for use of specified spectrum.

15

SoftBank Corp. Consolidated Financial Report
For the three-month period ended June 30, 2014(c) Current Liabilities(Millions of yen)

As ofMarch 31, 2014

Item
Interest-bearing debt

As ofJune 30, 2014

Change1,147,899

1,365,890

217,991

101,977

81,846(20,131)

Short-term borrowings

270,529

314,022

43,493Current portion of
long-term borrowings

393,566

394,069503

139,300

100,040(39,260)

64,43345,079(19,354)

Current portion oflease obligations

264,295

280,203

15,908Current portion ofpreferred securities-

199,578

199,578

80,20977,978(2,231)

Trade and other payables

1,705,956

1,543,077(162,879)

Other financial liabilities

5,847

4,761

(1,086)

Income taxes payables

246,013

98,797(147,216)

Provisions

93,11575,021(18,094)

Other current liabilities

568,366

504,115(64,251)

Total current liabilities

3,767,196

3,591,661(175,535)

SprintCurrent portion of
corporate bonds
SprintOthersCurrent liabilities totaled ¥3,591,661 million, for a ¥175,535 million (4.7%) decrease from the previous fiscal
year-end.

The components of the change of primary items were as follows:・ Interest-bearing debt totaled ¥1,365,890 million, for a ¥217,991 million increase from the previous fiscal yearend.

This was mainly due to the reclassification from non-current liabilities of ¥200,000 million of thepreferred (restricted voting) securities (balance as of the end of the period: ¥199,578 million) of the subsidiary
SFJ Capital Limited issued in September 2011 because, although maturity is not determined in the contract,
there is a possibility that the holders will exercise their put option to redeem the preferred securities in cash in
May 2015 or later.
・ Trade and other payables totaled ¥1,543,077 million for a ¥162,879 million decrease from the previous fiscal
year-end.

This was mainly due to increases in accounts payable relating to sales commissions to dealers andaccounts payable to handset manufacturers at the previous fiscal year-end.

These temporary increases were

driven by respective increases in the units sold and the number of handsets procured during the fourth quarterof the previous fiscal year, due to the impact of competition to win customers under MNP.
・ Income taxes payables totaled ¥98,797 million for a ¥147,216 million decrease from the previous fiscal yearend.

This was mainly attributable to the payment of income taxes payables recorded at the previous fiscal

year-end, although the Company recorded income taxes payables for the period.

16SoftBank Corp. Consolidated Financial Report
For the three-month period ended June 30, 2014(d) Non-current Liabilities(Millions of yen)

As ofMarch 31, 2014

Item
Interest-bearing debt

As ofJune 30, 2014

Change8,022,154

8,020,644(1,510)3,257,182

3,198,047(59,135)

2,243,855

2,230,500(13,355)

4,743,073

4,952,454

209,381

3,164,192

3,109,075(55,117)

Lease obligations

730,915

749,406

18,491

Preferred securities

199,156-(199,156)

Others105,155

88,284(16,871)

Other financial liabilities

41,151

43,487

2,336

Defined benefit liabilities

77,04175,440(1,601)

Provisions

136,920

133,321(3,599)1,533,021

1,502,107(30,914)

1,448,264

1,437,334(10,930)

Other non-current liabilities

282,262281,671(591)

Total non-current liabilities

10,092,549

10,056,670(35,879)

SprintLong-term borrowings
Corporate bonds
SprintDeferred tax liabilities
SprintNon-current liabilities totaled ¥10,056,670 million, for a ¥35,879 million (0.4%) decrease from the previous fiscal
year-end.

Interest-bearing debt decreased by ¥1,510 million from the previous fiscal year-end.

The decrease

mainly reflected the reclassification into current liabilities of the preferred (restricted voting) securities of SFJ
Capital Limited and a decrease in Sprint’s corporate bonds by ¥55,117 million due to a decline in exchange
differences attributable to the yen appreciating against the U.S. dollar as of the end of the period compared withthe previous fiscal year-end.

On the other hand SoftBank Corp. issued ¥300,000 million of unsecured straight

corporate bonds.

17

SoftBank Corp. Consolidated Financial Report
For the three-month period ended June 30, 2014(e) Equity(Millions of yen)

As ofMarch 31, 2014
Equity attributable toowners of the parent
Non-controlling interests
Total equity

As ofJune 30, 2014

ChangeChange %1,930,441

1,950,433

19,992

1.0%

899,941

914,365

14,4241.6%

2,830,382

2,864,798

34,4161.2%

Equity totaled ¥2,864,798 million, for a ¥34,416 million (1.2%) increase from the previous fiscal year-end.

Ofthis amount, equity attributable to owners of the parent and non-controlling interests increased by ¥19,992 million(1.0%) and ¥14,424 million (1.6%), respectively.

The ratio of equity attributable to owners of the parent to total

assets increased by 0.2 of a percentage point from the previous fiscal year-end to 11.8%.
(Equity Attributable to Owners of the Parent)(Millions of yen)

As ofMarch 31, 2014

Item

As of
June 30, 2014

ChangeCommon stock

238,772

238,772-

Capital surplus

405,045404,884(161)

Retained earnings

1,168,266

1,221,739

53,473

Treasury stock(51,492)(51,260)

232

Accumulated othercomprehensive income

169,850

136,298(33,552)

Available-for-sale financial
assets14,122

14,500378

Cash flow hedges(19,942)(16,183)

3,759

Exchange differences ontranslating foreign operations

175,670

137,981(37,689)

1,930,441

1,950,433

19,992

Total equity attributable toowners of the parent

Equity attributable to owners of the parent totaled ¥1,950,433 million, for a ¥19,992 million (1.0%) increase fromthe previous fiscal year-end.

This was mainly due to an increase in retained earnings by ¥53,473 million while

accumulated other comprehensive income decreased by ¥33,552 million from the previous fiscal year-end.

The

increase in retained earnings reflected net income attributable to owners of the parent of ¥77,574 million, as wellas payment of a year-end dividend totaling ¥23,769 million.

The decrease in accumulated other comprehensive

income was mainly attributable to a decline in exchange differences on translating foreign operations due to the
yen appreciating against the U.S. dollar as of the end of the period compared with the previous fiscal year-end.
(Non-controlling Interests)
Non-controlling interests totaled ¥914,365 million, for a ¥14,424 million (1.6%) increase from the previous fiscal
year-end.

18

SoftBank Corp. Consolidated Financial Report
For the three-month period ended June 30, 2014b. Cash Flows
Cash flows during the period were as follows:
Cash and cash equivalents at the end of the period totaled ¥1,902,452 million, for a ¥61,038 million decrease
from the previous fiscal year-end.
(Millions of yen)Three-month Period
Ended June 30,
2013(Note 8)

Three-month Period
Ended June 30, 2014

Cash flows from operating activities

2,243

104,784

102,541

Cash flows from investing activities(246,062)(377,737)(131,675)

Cash flows from financing activities

874,132

219,309(654,823)(180,009)(216,479)(36,470)

Change(Reference)
Cash flows from operating activities- capital expenditure(Note 9)

Notes:
8. Retrospective adjustments are made in accordance with the adoption of IFRIC 21 “Levies.” Please refer to page 29 “2.
Significant accounting policies” under “3. Condensed Interim Consolidated Financial Statements, (6) Notes to Condensed
Interim Consolidated Financial Statements” for details on the retrospective adjustments.
9. Outlays for purchase of property, plant and equipment and intangible assets.

(a) Cash Flows from Operating Activities
Net cash provided by operating activities totaled ¥104,784 million (compared with ¥2,243 million provided in thesame period of the previous fiscal year).
¥68,138 million.

Out of this, Sprint’s net cash provided by operating activities totaled

The primary components of cash flows were as follows:i. Net income totaled ¥111,308 million.
ii. The main items added to net income were ¥255,001 million in depreciation and amortization, ¥88,163 million
in income taxes, ¥84,987 million in finance cost, and ¥63,425 million in equity in loss of associates.
iii. Decrease in trade and other receivables (increase in cash flows) of ¥73,856 million and decrease in trade andother payables (decrease in cash flows) of ¥158,677 million were recorded.

These decreases were mainly

due to settling receivables and accounts payable to dealers and accounts payable to handset manufacturersthat were recorded at the previous fiscal year-end.
iv. Interest paid was ¥95,263 million.

The year-on-year increase of ¥71,492 million was mainly due to theimpact of adding the interest expense of Sprint.
v. Income taxes paid was ¥255,155 million.
(b) Cash Flows from Investing Activities
Net cash used in investing activities was ¥377,737 million (compared with ¥246,062 million used in the same
period of the previous fiscal year).

The primary components of cash flows were as follows:i. Outlays for purchase of property, plant and equipment, and intangible assets amounted to ¥321,263 million.
Out of this, Sprint’s outlays for purchase of property, plant and equipment, and intangible assets amounted to¥130,598 million.

19

SoftBank Corp. Consolidated Financial Report
For the three-month period ended June 30, 2014

ii. Payments for acquisition of investments of ¥97,574 million and proceeds from sales/redemption of
investments of ¥90,100 million were recorded.

These were mainly attributable to short-term trading ofmarketable securities by Sprint.

(c) Cash Flows from Financing Activities
Net cash provided by financing activities was ¥219,309 million (compared with ¥874,132 million provided in thesame period of the previous fiscal year).

The primary components of cash flows were as follows:(Items Increasing Cash Flows)
Proceeds from long-term interest-bearing debt amounted to ¥484,051 million.

The primary components wereas follows:・Proceeds from issuance of corporate bonds of ¥300,000 million.

This consisted of unsecured straight

corporate bonds issued by SoftBank Corp.
・Proceeds from sale and leaseback of newly acquired equipment of ¥103,136 million.
・Proceeds from long-term borrowings of ¥80,915 million.

These were mainly due to borrowings madethrough securitization of installment sales receivables at SoftBank Mobile Corp.

(Items Decreasing Cash Flows)
Repayment of long-term interest-bearing debt was ¥231,811 million.

The primary components were as

follows:
・Repayment of long-term borrowings of ¥81,375 million.

This was mainly due to SoftBank Mobile Corp.

repaying borrowings made through securitization of installment sales receivables.
・Redemption of corporate bonds of ¥63,423 million.

This was mainly due to SoftBank Corp.’s redemptionof its unsecured straight corporate bonds totaling ¥44,900 million.

(3) Qualitative Information Regarding Forecast on Consolidated Results of Operations
The Company projects net sales of ¥8 trillion, EBITDA(Note 10) of ¥2 trillion, and operating income of ¥1 trillion
under IFRSs for the fiscal year ending March 31, 2015.
The operating income of the fiscal year ended March 31, 2014 of ¥1,077.0 billion (after retrospective
adjustments) includes gain from remeasurement relating to business combination of ¥253.9 billion.

The

forecasted operating income of ¥1 trillion for the fiscal year ending March 31, 2015 does not include any temporary
gains.
Note:
10. EBITDA = net sales - cost of sales - selling, general and administrative expenses + depreciation and amortization

20

SoftBank Corp. Consolidated Financial Report
For the three-month period ended June 30, 2014

2. Notes to Summary Information
Changes in Accounting Policies and Accounting Estimates(Changes in accounting policies required by IFRSs)
The following standards are applied by the Company during the three-month period ended June 30, 2014.
Standard
IAS 32(Amendments)
IFRIC 21

Presentation

Outline of the new / revised standards
To clarify the requirements of net presentation of financial assets
and liabilities

LeviesTo clarify the timing of recognition of liabilities related to thepayment of levies

Financial Instruments:

The details are described in “Note 2. Significant accounting policies” under “ 3. Condensed Interim Consolidated
Financial Statements (6) Notes to Condensed Interim Consolidated Financial Statements”

21SoftBank Corp. Consolidated Financial Report
For the three-month period ended June 30, 2014

3. Condensed Interim Consolidated Financial Statements(1) Condensed Interim Consolidated Statements of Financial Position(Millions of yen)

As ofMarch 31, 2014*
AssetsCurrent assets
Cash and cash equivalents
Trade and other receivables
Other financial assets
Inventories
Other current assets
Total current assets
Non-current assets
Property, plant and equipment
Goodwill
Intangible assets
Investments accounted for using the equity method
Other financial assets
Deferred tax assets
Other non-current assets
Total non-current assets
Total assets

As ofJune 30, 2014

1,963,490
1,669,545
164,727
251,677
281,535
4,330,974

1,902,452
1,613,536
185,658
300,112303,852
4,305,610

3,586,327
1,539,607
6,177,701
304,318

3,636,084
1,530,965
6,032,465
257,386

401,693
182,246
167,261
12,359,153
16,690,127

420,500
159,701
170,418
12,207,519
16,513,129

Note:
Retrospective adjustments are made in accordance with the adoption of IFRIC 21 “Levies.” The details are described in“Note 2. Significant accounting policies.”

22SoftBank Corp. Consolidated Financial Report
For the three-month period ended June 30, 2014

(Millions of yen)

As ofMarch 31, 2014*
Liabilities and equity
Current liabilities
Interest-bearing debt
Trade and other payables
Other financial liabilities
Income taxes payables
Provisions
Other current liabilities
Total current liabilities

As ofJune 30, 2014

1,147,899
1,705,956
5,847
246,013
93,115568,366
3,767,196

1,365,890
1,543,077
4,761
98,79775,021
504,115
3,591,661

Total liabilities

8,022,154
41,151
77,041
136,920
1,533,021
282,262
10,092,549
13,859,745

8,020,644
43,48775,440133,321
1,502,107
281,671
10,056,670
13,648,331

EquityEquity attributable to owners of the parent
Common stock
Capital surplus
Retained earnings
Treasury stock
Accumulated other comprehensive income
Total equity attributable to owners of the parent
Non-controlling interests
Total equity
Total liabilities and equity

238,772
405,045
1,168,266(51,492)
169,850
1,930,441
899,941
2,830,382
16,690,127

238,772
404,884
1,221,739(51,260)
136,298
1,950,433
914,365
2,864,798
16,513,129

Non-current liabilities
Interest-bearing debt
Other financial liabilities
Defined benefit liabilities
Provisions
Deferred tax liabilities
Other non-current liabilities
Total non-current liabilities

Note:
Retrospective adjustments are made in accordance with the adoption of IFRIC 21 “Levies.” The details are described in“Note 2. Significant accounting policies.”

23

SoftBank Corp. Consolidated Financial Report
For the three-month period ended June 30, 2014

(2) Condensed Interim Consolidated Statements of Income and Other Comprehensive Income

Condensed Interim Consolidated Statements of Income(Millions of yen)Three-month period ended Three-month period ended
June 30, 2013*
June 30, 2014
881,069
1,992,216(407,195)(1,148,502)
473,874
843,714

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Gain from remeasurement relating to businesscombination
Other operating income (loss)
Operating income
Finance cost
Equity in loss of associates
Other non-operating income (loss)
Income before income tax
Income taxes
Net income
Net income attributable to
Owners of the parent
Non-controlling interests

Earnings per share attributable to owners of the parent
Basic (yen)Diluted (yen)(222,901)(506,657)

150,120-(972)
400,121(27,383)(1,083)(11,543)
360,112(90,460)
269,652575
337,632(84,987)(63,425)
10,251
199,471(88,163)
111,308

244,377
25,275
269,652

77,57433,734111,308205.09204.80

65.27
65.14

Note:
Retrospective adjustments are made in accordance with the adoption of IFRIC 21 “Levies.” The details are described in“Note 2. Significant accounting policies.”

24

SoftBank Corp. Consolidated Financial Report
For the three-month period ended June 30, 2014

Condensed Interim Consolidated Statements of Comprehensive Income(Millions of yen)Three-month period ended
June 30, 2013*

Three-month period ended
June 30, 2014

269,652

111,308

(6)

(244)

(6)

(244)

22,912
24,895(2,091)
3,788

22,996(39,511)5,615(5,361)

76,418(43,175)

76,412
346,064(43,419)
67,889321,625
24,439346,064

43,77824,111
67,889Net income
Other comprehensive income (loss), net of tax
Items that will not be reclassified to profit or loss
Remeasurements of defined benefit plan
Total items that will not be reclassified to profit
or loss
Items that may be reclassified subsequently to
profit or loss
Available-for-sale financial assets
Cash flow hedges
Exchange differences on translating foreign
operations
Share of other comprehensive income ofassociates
Total items that may be reclassified subsequently to
profit or loss
Total other comprehensive income (loss), net of tax
Total comprehensive income
Total comprehensive income attributable to
Owners of the parent
Non-controlling interests

Note:
Retrospective adjustments are made in accordance with the adoption of IFRIC 21 “Levies.” The details are described in“Note 2. Significant accounting policies.”

25

SoftBank Corp. Consolidated Financial Report
For the three-month period ended June 30, 2014

(3) Condensed Interim Consolidated Statements of Changes in Equity
For the three-month period ended June 30, 2013*(Millions of yen)
Equity attributable to owners of the parent

As of April 1, 2013
Effect of retrospective
adjustments
As of April 1, 2013
(after adjustments)
Comprehensive income
Net income
Other comprehensive
incomeTotal comprehensive
incomeTransactions with owners
and other transactions
Cash dividends
Transfer of accumulated
other comprehensive
income to retained
earnings
Purchase and disposal oftreasury stock
Changes from businesscombination
Changes in interests in
subsidiaries
Share-based paymenttransactions
Other
Total transactions withowners and othertransactions
As of June 30, 2013

Accumulated
othercomprehensive
incomeNoncontrollinginterests Total equity
Total
1,612,756
317,684 1,930,440

Commonstock
238,772

Capitalsurplus436,704

Retainedearnings
712,088

Treasurystock(22,834)--(18,315)--(18,315)(654)(18,969)

238,772

436,704

693,773(22,834)

248,026

1,594,441

317,030

1,911,471--

244,377--

244,377

25,275

269,652

-

-

-

-

77,24877,248(836)

76,412--

244,377-

77,248

321,625

24,439346,064--(23,830)--(23,830)(13,556)(37,386)

-

-

(6)

-

6

-

-

-

-

17

-

224

-

241

-

241

-

-

-

-

-

-

48,866

48,866

-

(73)

-

-

-

(73)

(207)

(280)

-

123

-

-

-

123

-

123

-

-

-

-

-

-

88

88

-

67

(23,836)224

6(23,539)

35,191

11,652

238,772

436,771914,314(22,610)

325,280

1,892,527

376,660

2,269,187

248,026

Note:
Retrospective adjustments are made in accordance with the adoption of IFRIC 21 “Levies.” The details are described in“Note 2. Significant accounting policies.”

26

SoftBank Corp. Consolidated Financial Report
For the three-month period ended June 30, 2014

For the three-month period ended June 30, 2014
(Millions of yen)
Equity attributable to owners of the parent

As of April 1, 2014
Effect of retrospective
adjustments*
As of April 1, 2014
(after adjustments)
Comprehensive income
Net income
Other comprehensive
loss
Total comprehensive
incomeTransactions withowners and othertransactions
Cash dividends
Transfer of accumulated
other comprehensive
income to retained
earnings
Purchase and disposalof treasury stock
Changes in interestsin subsidiaries
Share-based paymenttransactions
Other
Total transactions
with owners andother transactions
As of June 30, 2014

Accumulated
othercomprehensive
income169,617

Total
1,955,374

Noncontrollinginterests
903,296

Total equity
2,858,670

233(24,933)(3,355)(28,288)(51,492)

169,850

1,930,441

899,941

2,830,382

77,574--77,57433,734111,308---(33,796)(33,796)(9,623)(43,419)--

77,574-(33,796)

43,77824,111

67,889--(23,769)--(23,769)(16,013)(39,782)

-

-

(244)

-

244

-

-

-

-

-

(88)

232

-

144

-

144

-

(159)

-

-

-

(159)

1,926

1,767

-

(2)

-

-

-

(2)

4,576

4,574

-

-

-

-

-

-

(176)

(176)

-

(161)

(24,101)

232

244(23,786)(9,687)(33,473)

238,772

404,884

1,221,739(51,260)

136,298

1,950,433

914,365

2,864,798

Commonstock
238,772

Capitalsurplus405,111Retainedearnings
1,193,366

Treasurystock(51,492)-(66)(25,100)-

238,772

405,045

1,168,266

-

-

-

Note:
Retrospective adjustments are made in accordance with the adoption of IFRIC 21 “Levies.” The details are described in“Note 2. Significant accounting policies.”

27

SoftBank Corp. Consolidated Financial Report
For the three-month period ended June 30, 2014

(4) Condensed Interim Consolidated Statements of Cash Flows(Millions of yen)Three-month period ended
June 30, 2013*

Three-month period ended
June 30, 2014

269,652
103,299

111,308
255,001(150,120)-

27,383
1,083
11,54390,46010,196(31,475)

84,98763,425(10,251)
88,16373,856(158,677)

Other(51,959)(54,137)

Subtotal

280,062453,675

Interest and dividends received
Interest paid
Income taxes paid
Net cash provided by operating activities

2,291(23,771)(256,339)
2,243

1,527
(95,263)(255,155)
104,784(182,252)(321,263)(16,800)
13,780(97,574)
90,100(15,408)-(45,382)(246,062)(49,000)(377,737)

131,072

16,612

944,051(180,988)

484,051(231,811)-(12,191)(21,862)(13,461)
15,320874,132(22,917)(16,017)
1,582
219,309952(7,394)

631,265
1,439,057
2,070,322(61,038)
1,963,490
1,902,452

Cash flows from operating activities
Net income
Depreciation and amortization
Gain from remeasurement relating to businesscombination
Finance cost
Equity in loss of associates
Other non-operating loss (income)
Income taxes
Decrease in trade and other receivables
Decrease in trade and other payables

Cash flows from investing activities
Purchase of property, plant and equipment, andintangible assets
Payments for acquisition of investments
Proceeds from sales/redemption of investments
Decrease from acquisition of control oversubsidiaries
Other
Net cash used in investing activities
Cash flows from financing activities
Increase in short-term interest-bearing
debt, net
Proceeds from long-term interest-bearing debt
Repayment of long-term interest-bearing debt
Payment from purchase of subsidiaries’ equity from
non-controlling interests
Cash dividends paid
Cash dividends paid to non-controlling interests
Other
Net cash provided by financing activities
Effect of exchange rate changes on cash and cash
equivalents
Increase (decrease) in cash and cash equivalents
Cash and cash equivalents at the beginning of the period
Cash and cash equivalents at the end of the period

Note:
Retrospective adjustments are made in accordance with the adoption of IFRIC 21 “Levies.” The details are described in“Note 2. Significant accounting policies.”

28

SoftBank Corp. Consolidated Financial Report
For the three-month period ended June 30, 2014(5) Significant Doubt about Going-Concern Assumption
For the three-month period ended June 30, 2014
There are no applicable items.
(6) Notes to Condensed Interim Consolidated Financial Statements
1. Definition of company name and abbreviation used in the notes
Company names and abbreviations used in the notes, except as otherwise stated or interpreted differently in thecontext, are as follows:
Company name / Abbreviation

Definition“SoftBank Corp.”

SoftBank Corp. (stand-alone basis)

The “Company”

SoftBank Corp. and its subsidiaries*Each of the following abbreviations indicates the respective company, and its subsidiaries if any.
“Sprint”

Sprint Corporation (previously Sprint Nextel Corporation)“GungHo”

GungHo Online Entertainment, Inc.

“Supercell”

Supercell Oy

2. Significant accounting policies
The significant accounting policies applied in these condensed interim consolidated financial statements are
consistent with those for the fiscal year ended March 31, 2014, except for the adoption of the following new
standards and interpretations. Income taxes for the three-month period ended June 30, 2014 are calculated based on
the estimated effective tax rate for the year. Certain defined benefit liabilities as of June 30, 2014 are calculated
based on reasonable estimates with the actuarial calculation made as of March 31, 2014.

Adoption of new standards and interpretations
The following standards are applied by the Company during the three-month period ended June 30, 2014.
Standard
IAS 32(Amendments)
IFRIC 21

Financial Instruments:
Presentation
LeviesOutline of the new / revised standards
To clarify the requirements of net presentation of financial assets
and liabilities
To clarify the timing of recognition of liabilities related to thepayment of levies

IFRIC 21 is applied retrospectively in accordance with its transition method. Condensed interim consolidated
financial statements for the three-month period ended June 30, 2013 and for the fiscal year ended March 31, 2014
are presented after the retrospective application.
Effects on the condensed interim consolidated financial statements by the above adoption are as follows.

29SoftBank Corp. Consolidated Financial Report
For the three-month period ended June 30, 2014

(Condensed Interim Consolidated Statements of Financial Position)(Millions of yen)

As ofMarch 31, 2014
(11,686)
7,302
9,514
5,130

As of
June 30, 2014(12,829)
7,207
6,411
789

Increase in other current liabilities
Increase in total liabilities

33,41833,41818,736
18,736

Decrease in capital surplus
Decrease in retained earnings
Increase in accumulated other comprehensive income
Decrease in non-controlling interests
Decrease in total equity(66)(25,100)
233(3,355)(28,288)(65)(16,087)266(2,061)(17,947)

Decrease in other current assets
Increase in goodwill
Increase in deferred tax assets
Increase in total assets(Condensed Interim Consolidated Statements of Income)(Millions of yen)Three-month period Three-month period
ended June 30, 2013 ended June 30, 2014
Decrease in cost of sales
8,597
12,972
Decrease in selling, general and administrative expenses
499
407
Increase in income taxes(2,630)(3,103)
Increase in net income
6,466
10,276
Earnings per share attributable to owners of the parent
Increase in earnings per share-basic (yen)Increase in earnings per share-diluted (yen)

5.13
5.12

7.58
7.55

(Condensed Interim Consolidated Statements of Comprehensive Income)(Millions of yen)Three-month period Three-month period
ended June 30, 2013 ended June 30, 2014
6,466
10,276

Increase in net income
Increase in exchange differences on translating
foreign operations
Increase in total comprehensive income

30

-

40

6,466

10,316

SoftBank Corp. Consolidated Financial Report
For the three-month period ended June 30, 2014

(Condensed Interim Consolidated Statements of Cash Flows)(Millions of yen)Three-month period Three-month period
ended June 30, 2013 ended June 30, 2014
Cash flows from operating activities
Increase in net income
Increase in income taxes
Decrease in otherNet cash provided by (used in) operating activities

6,466
2,630
(9,096)-

10,276
3,103(13,379)-

There are no significant effects on the Company due to the adoption of other new standards and interpretations.

3. Business combinations
For the three-month period ended June 30, 2013
(1) GungHo Online Entertainment, Inc.
a. Overview of consolidation
Masayoshi Son, chairman and CEO of the SoftBank Corp., has entered into a Memorandum of Understanding
on Exercise of Voting Rights for Deferment of Execution of Pledges (the “MOU”) with respect to the shares of
GungHo on April 1, 2013, with Heartis G.K. (“Heartis”; percentage of voting interest: 18.50%), which is thesecond largest shareholder of GungHo and Taizo Son’s asset management company and of which Taizo Son,chairman of GungHo, is the representative director. Under the MOU, in order to have Son Holdings Inc., ofwhich Masayoshi Son is a director and which is a Masayoshi Son’s asset management company, defer the
execution of pledges over the shares of GungHo held by Heartis, Heartis has agreed, effective as of April 1,
2013, to the effect that at the shareholders meeting of GungHo, Heartis will exercise the voting rights for all of
the shares of GungHo it holds in accordance with Masayoshi Son’s directions. Also, a subsidiary of theCompany, SoftBank Mobile Corp., undertook the Tender Offer from April 1, 2013 to April 26, 2013 andacquired 6.37% of GungHo shares (purchase price: ¥24,976 million). The Company and Heartis together
came to represent the majority of the voting rights in GungHo’s shares (percentage of voting interest: 58.50%)
and GungHo Online Entertainment changed from an equity method associate to a subsidiary of the Company.
With this transaction, the Company expects that it will be able to enhance mobile content, and to improve theefficiency in operation of the mobile communications business and profitability competitiveness by combining
smartphone-focused development capability and infrastructure held by the Company, and planning and creating
capabilities in the smartphone game industry held by GungHo.
(Business Description of GungHo)(a) Planning, development, operation and distribution of online games(b) Planning, development and sales of mobile content(c) Planning, development and sales of character goods(d) Planning, development and distribution of other entertainment content(Acquisition date)
April 1, 201331

SoftBank Corp. Consolidated Financial Report
For the three-month period ended June 30, 2014b. Consideration transferred and the components(Millions of yen)

Acquisition date
(April 1, 2013)
24,976

Payment by cash
Fair value of equity interest in GungHo already held at
the time of the acquisition
Total consideration transferred

153,620A

178,596

Acquisition-related costs of ¥109 million arising from the business combinations are recognized in “Selling,
general and administrative expenses.”
As a result of the reevaluation of 33.63% in equity interest already held at the time of the acquisition of control
by the Company in GungHo at fair value on the acquisition date, the Company recognized a gain on the step
acquisition of ¥150,120 million. This gain is presented as “Gain from remeasurement relating to businesscombination” in the condensed interim consolidated statements of income.
c. Fair values of assets and liabilities, non-controlling interests and goodwill on the acquisition date(Millions of yen)

Acquisition date
(April 1, 2013)
36,90380,814
4,511
122,228

Current assets
Intangible assets1
Other non-current assets
Total assets

10,89729,94940,846

Current liabilities
Non-current liabilities
Total liabilities
Net assets

B

81,382

Non-controlling interests2
Goodwill3

C48,818146,032

A-(B-C)

Notes:
1. Intangible assets
Game titles of ¥77,796 million are included.
2. Non-controlling interests
Non-controlling interests in an acquiree that are present ownership interests and entitle their holders to a proportionate
share of the entity’s net assets in the event of liquidation are measured based on the proportionate interests at acquisition
date in the identifiable net assets of the acquiree at acquisition date.
3. Goodwill
Goodwill reflects excess earning power expected from the future business development and assembled workforce forgame development and other, and the synergy with existing businesses.

32SoftBank Corp. Consolidated Financial Report
For the three-month period ended June 30, 2014

d. Decrease from acquisition of control over subsidiaries(Millions of yen)

Payment for the acquisition by cash
Cash and cash equivalents held by the acquiree at the time ofacquisition of control
Decrease in cash from the acquisition of control over thesubsidiary

Acquisition date
(April 1, 2013)(24,976)
11,025(13,951)e. Sales and net income of the acquiree
The amount of the acquiree’s sales and net income before elimination of inter-company transactions and after
the acquisition date are ¥43,717 million and ¥11,839 million, respectively, which are recorded in the condensed
interim consolidated statements of income for the three-month period ended June 30, 2013.
In addition, the above net income includes amortization expenses, which are related to intangible assets recognizedat the acquisition date, and other.

For the three-month period ended June 30, 2014(2) Sprint (adjustment of the provisional amount)
On July 10, 2013, the Company owns approximately 78% of the shares of Sprint Corporation (previously Sprint
Nextel Corporation) and Sprint became a subsidiary of SoftBank Corp.
Consideration transferred is allocated to acquired assets and assumed liabilities based on the fair value on theacquisition date. Allocation of the consideration transferred was completed during the three-month period ended
June 30, 2014. The details of the adjustments from the initial provisional amounts are as follows. Due to theadditional analysis performed by Sprint management on the fair value of FCC licenses, intangible assets increasedby ¥30,342 million and non-controlling interests increased by ¥29,029 million. As a result, goodwill decreasedby ¥14,970 million. Retrospective adjustments are made due to the adoption of IFRIC 21 “Levies” as describedin “Note 2. Significant accounting policies.”

33

SoftBank Corp. Consolidated Financial Report
For the three-month period ended June 30, 2014

Fair values of assets and liabilities, non-controlling interests and goodwill on the acquisition date are as follows:(Millions of yen)

Acquisition date(July 10, 2013)
Current assets
Cash and cash equivalents
Trade and other receivables
Other financial assets
Inventories
Other current assets
Total current assets

447,873332,553
111,764
105,318
43,236
1,040,744

Non-current assets
Property, plant and equipment
Intangible assets
Other financial assets
Other non-current assets
Total non-current assets
Total assets

1,291,364
5,305,965
23,93814,1396,635,406
7,676,150

Current liabilities
Interest-bearing debt
Trade and other payables
Income taxes payables
Provisions
Other current liabilities
Total current liabilities

86,961
634,371
4,553
101,404
291,398
1,118,687

Non-current liabilities
Interest-bearing debt
Other financial liabilities
Defined benefit liabilities
Provisions
Deferred tax liabilities
Other non-current liabilities
Total non-current liabilities
Total liabilities

2,668,163
5,662
65,763
146,492
1,422,965
184,1074,493,152
5,611,839

Net assets

2,064,311

Non-controlling interests

466,735

Basis adjustment
Goodwill

311,659
279,448

The above amount is translated at the exchange rate (USD = JPY101.14) as of the acquisition date.

34

SoftBank Corp. Consolidated Financial Report
For the three-month period ended June 30, 2014

4. Segment information(1) Description of reportable segments
The Company’s reportable segments are components of business activities for which discrete financial
information is available, and such information is regularly reviewed by the Company’s board of directors in orderto make decisions about the allocation of the resources and assess its performance.
The Company has four segments, the Mobile Communications segment, the Sprint segment, the Fixed-line
Telecommunications segment, and the Internet segment.
The Mobile Communications segment provides, mainly through SoftBank Mobile Corp., mobile communication
services, and sales of mobile handsets and accessories. In addition, online games for smartphones and otherdevices are produced and distributed through GungHo and Supercell.
The Sprint segment provides, through Sprint, mobile communication services, sale of mobile handsets andaccessories accompanying the mobile communication services, and the fixed-line telecommunication services in
the U.S.
The Fixed-line Telecommunications segment provides, mainly through SoftBank Telecom Corp.,
telecommunication services such as data communication and fixed-line telephone services for corporate
customers. It also provides, mainly through SoftBank BB Corp., broadband services for individual customers.
The Internet segment provides, mainly through Yahoo Japan Corporation, Internet-based advertising operations.
The Sprint segment was newly established from the three-month period ended September 30, 2013, by the
consolidation of Sprint in July 2013.

(2) Net sales and income of reportable segments
Income of reportable segments is based on income from operating income, excluding “Gain from remeasurement
relating to business combination” and “Other operating income (loss),” as follows:
Segment income = (net sales – cost of sales – selling, general and administrative expenses) in each segment
Intersegment transactions are conducted under the same general business conditions as applied for externalcustomers.
The following is information about the Company’s net sales and income by reportable segments. The
Company also discloses “EBITDA (segment income before depreciation and amortization)” by reportablesegment.

35

SoftBank Corp. Consolidated Financial Report
For the three-month period ended June 30, 2014

For the three-month period ended June 30, 2013
(Millions of yen)
Reportable segments
MobileFixed-line

Commu-

Telecommu-

nications

SprintnicationsInternet

Total

Other1

Reconcili-

Consoli-ations2

dated

Net sales
Customers

657,227-

106,874

95,495859,596

21,473-

Intersegment

4,691

-

26,532703

31,926

9,102(41,028)-

Total

661,918-

133,406

96,198891,522

30,575(41,028)

881,069

EBITDA
Depreciation andamortization

264,226-

43,44449,983357,653

2,938(6,319)354,272(83,367)-(14,809)(3,221)(101,397)(1,587)(315)(103,299)

180,859-

28,63546,762

256,256

1,351(6,634)

250,973

Segment income
Gain from remeasurement
relating to businesscombination

881,069

150,120(972)

Other operating loss
Operating income

400,121

Finance cost

(27,383)

Equity in loss of associates(1,083)

Other non-operating loss

(11,543)

Income before income tax

360,112For the three-month period ended June 30, 2014
(Millions of yen)
Reportable segments
MobileCommunications

SprintFixed-line
Telecommunications

Internet

Total

Other1

Customers
Intersegment

874,374

896,043

106,377

95,8801,972,674

8,527

1,694

25,45997836,658

Total

882,901

897,737

131,836

96,858

EBITDA
Depreciation andamortization

314,490

190,326

40,65649,026(106,600)(128,621)(13,939)

Segment income

207,890

61,70526,717

Reconciliations2

Consolidated

19,542-

1,992,216

6,590(43,248)-

2,009,332

26,132(43,248)

1,992,216

594,498

3,111(5,551)

592,058(3,543)(252,703)(1,933)(365)(255,001)

45,483

341,795

1,178(5,916)

337,057

Net sales

Gain from remeasurement
relating to businesscombination-

Other operating income

575

Operating income

337,632

Finance cost

(84,987)

Equity in loss of associates(63,425)

Other non-operating
income10,251

Income before income tax

199,471

Notes:
1.“Other” includes Fukuoka SoftBank HAWKS-related business.
2.“Reconciliations” includes an elimination of intersegment transactions and the corporate general expenses unallocated to eachreportable segment.

36SoftBank Corp. Consolidated Financial Report
For the three-month period ended June 30, 2014

5. Property, plant and equipment
The components of the carrying amounts of property, plant and equipment are as follows:(Millions of yen)

Buildings and structures
Telecommunications equipment
Land
Construction in progress
Other
Total

As of
March 31, 2014
258,637
2,827,064
92,545
266,136
141,9453,586,327

As ofJune 30, 2014
258,294
2,844,951
92,263
289,249
151,327
3,636,084

6. Intangible assets
The components of the carrying amounts of intangible assets are as follows:(Millions of yen)

As ofMarch 31, 2014
Intangible assets with indefinite useful lives
FCC licenses
Trademarks
Intangible assets with finite useful lives
Software
Customer relationships
Favorable lease contracts
Game titles
Trademarks
Other
Total

37

As of
June 30, 2014

3,709,526
622,975

3,631,653
613,717647,386
677,494140,217
166,52252,475
161,106
6,177,701

670,169
622,417
134,274
151,443
51,286
157,506
6,032,465

SoftBank Corp. Consolidated Financial Report
For the three-month period ended June 30, 2014

7. Interest-bearing debt
(1) Components of interest-bearing debt
The components of interest-bearing debt are as follows:(Millions of yen)

As ofMarch 31, 2014
Current
Short-term borrowings
Commercial paper
Current portion of long-term borrowings
Current portion of corporate bonds
Current portion of lease obligations
Current portion of preferred securities
Current portion of installment payables
Total
Non-current
Long-term borrowings
Corporate bonds
Lease obligations
Preferred securities
Installment payables
Total

As of
June 30, 2014

270,529
32,000393,566
139,300
264,295
48,209
1,147,899

314,02232,000394,069
100,040
280,203
199,578
45,9781,365,890

2,243,855
4,743,073
730,915
199,156
105,155
8,022,154

2,230,500
4,952,454
749,406
88,2848,020,644(2) Components of increase in short-term interest-bearing debt
The components of “Increase in short-term interest-bearing debt, net” in the condensed interim consolidated
statements of cash flows are as follows:(Millions of yen)

Net increase of short-term borrowings
Net increase of commercial paper
Total

Three-month period
ended June 30, 2013
76,07255,000131,072

38

Three-month period
ended June 30, 2014
16,612
16,612

SoftBank Corp. Consolidated Financial Report
For the three-month period ended June 30, 2014

(3) Components of proceeds from long-term interest-bearing debt
The components of “Proceeds from long-term interest-bearing debt” in the condensed interim consolidated
statements of cash flows are as follows:(Millions of yen)

Proceeds from long-term borrowings
Proceeds from issuance of corporate bonds1,4
Proceeds from sale and leaseback of newly acquired equipment
Total

Three-month period
ended June 30, 2013
93,359724,382
126,310944,051

Three-month period
ended June 30, 2014
80,915300,000
103,136
484,051

Notes:
1. Corporate bonds issued for the three-month period ended June 30, 2013 are as follows:

Company name / Name of bonds
SoftBank Corp.

Date of issuanceTotal amountof issuanceInterest
rate

Date of maturity

USD-denominated Senior Notes
due year 2020

April 23, 2013

$2,485 million¥244,176 million2

4.50%
3.29%3

April 15, 2020

Euro-denominated Senior Notes
due year 2020

April 23, 2013€625 million¥80,206 million2

4.63%
4.05%3

April 15, 2020

43rd Unsecured Straight
Corporate Bond

June 20, 2013

¥400,000 million

1.74%

June 20, 2018

Notes:
2. The cash outflow amount, fixed by the currency swap contract designated as a cash flow hedge, at the time of redemption, is
described in JPY.
3. The interest rate, after considering the impact of converting the fixed interest rate in foreign currency into a fixed interest rate in
JPY by the currency swap contract, designated as a cash flow hedge, is described.
4. Corporate bonds issued for the three-month period ended June 30, 2014 are as follows:

Company name / Name of bonds
SoftBank Corp.
45th Unsecured Straight
Corporate Bond

Date of issuanceTotal amountof issuanceInterest
rate

Date of maturity

May 30, 2014

¥300,000 million

1.45%

May 30, 201939

SoftBank Corp. Consolidated Financial Report
For the three-month period ended June 30, 2014

(4) Components of repayment of long-term interest-bearing debt
The components of “Repayment of long-term interest-bearing debt” in the condensed interim consolidated
statements of cash flows are as follows:(Millions of yen)Three-month period
ended June 30, 2013(87,944)(25,000)(50,836)(17,208)(180,988)

Repayment of long-term borrowings
Redemption of corporate bonds1,2
Payment of lease obligations
Payment of installment payables
Total

Three-month period
ended June 30, 2014
(81,375)(63,423)(68,609)(18,404)(231,811)

Notes:
1. Corporate bonds redeemed for the three-month period ended June 30, 2013 are as follows:

Company name / Name of bonds

Date of issuance

Amount of redemption

Interest
rate

Date of redemption

June 2, 2010

¥25,000 million

1.17%

May 31, 2013

SoftBank Corp.
31st Unsecured Straight
Corporate Bond

Notes:
2. Major corporate bonds redeemed for the three-month period ended June 30, 2014 are as follows:

Company name / Name of bonds

Date of issuance

Amount of redemption

Interest
rate

Date of redemption

June 19, 2007

¥14,900 million

4.36%

June 19, 2014

June 10, 2011

¥30,000 million

0.65%

June 10, 2014

April 23, 2007

$181 million¥18,513 million

3.49%

May 1, 2014

SoftBank Corp.
26th Unsecured Straight
Corporate Bond
37th Unsecured Straight
Corporate Bond
iPCS, Inc.3
Second Lien Senior Secured
Floating Rate Notes due 2014
Notes:
3. iPCS, Inc. is a subsidiary of Sprint.

40

SoftBank Corp. Consolidated Financial Report
For the three-month period ended June 30, 2014

8. Foreign exchange rate
Exchange rates of the major currencies used for translating financial statements of foreign operations are as follows:(1) Rate at the end of the period

U.S. dollars

As ofMarch 31, 2014102.92(yen)
As ofJune 30, 2014
101.36

Three-month period
ended June 30, 2013
97.94

(yen)
Three-month period
ended June 30, 2014
102.14(2) Average rate for the quarter

U.S. dollars

9. Equity
Accumulated other comprehensive income
The components of accumulated other comprehensive income are as follows:(Millions of yen)

As ofMarch 31, 2014

As ofJune 30, 2014

Available-for-sale financial assets

14,122

14,500Cash flow hedges
Exchange differences on translating
foreign operations(19,942)(16,183)

175,670

137,981

169,850

136,298

Three-month period
ended June 30, 2013(27,383)

Three-month period
ended June 30, 2014
(84,987)

Total

10. Finance cost
The components of finance cost are as follows:(Millions of yen)Interest expense

41

SoftBank Corp. Consolidated Financial Report
For the three-month period ended June 30, 2014

11. Other non-operating income and loss
The components of other non-operating income and loss are as follows:(Millions of yen)Interest income1
Derivative loss1,2Gain from remeasurement relating to applying
equity method3
Other
Total

Three-month period
ended June 30, 201317,336(29,439)

Three-month period
ended June 30, 2014
989
(1,542)

-

6,249

560
(11,543)

4,555
10,251

Notes:
1. Stock acquisition rights in the convertible bonds issued by Sprint Nextel Corporation and undertaken by Starburst II on
October 22, 2012, were reported at fair value as a derivative, being bifurcated from the host contracts as they are classified
as embedded derivatives and were recorded in “Other financial assets” in the consolidated statements of financial position.
As the Company exercised the relevant stock acquisition right and the Company derecognized the derivatives, a derivativeloss of ¥16,356 million was recorded during the three-month period ended June 30, 2013.
With regard to the host contract (the bonds), the amount of payment less the fair value of the embedded derivative at
inception of the bond was recorded in the consolidated statement of financial position at inception. This deduction
amount is accreted using the effective interest method with corresponding adjustments to interest income. Initially, theexpected remaining accretion period for the bond discount was seven years based on the contract term of the bond.
However, based on the approval for the acquisition at the shareholders’ meeting of Sprint on June 25, 2013, the Company
changed the estimate of the expected remaining term to the completion of the acquisition. During the three-month period
ended June 30, 2013, the Company recognized interest income of ¥16,153 million. There was an increase of interest
income of ¥15,568 million from the reflection of this change in the expected remaining term of the bond.
2. Of the foreign currency forward contract totaling $22.0 billion which was related to the acquisition of Sprint, with regard to$5.0 billion that did not meet the criteria for hedge accounting, a derivative loss of ¥16,950 million was recorded for thethree-month period ended June 30, 2013. Hedge accounting was applied to $17.0 billion as a cash flow hedge. Fairvalue of ¥311,659 million of hedge instruments on the acquisition date was deducted from the initial amount of goodwill
which was recognized upon the acquisition.
3. Due to the increase in percentage of voting rights, the equity method is newly applied to the investment in an associate andthe gain is arising from remeasurement of the interest already held by the Company at the time of the equity method
application, based on the fair value on the date of the equity method application.

42

SoftBank Corp. Consolidated Financial Report
For the three-month period ended June 30, 201412. Supplemental information to the condensed interim consolidated statements of cash flows(1) Scope of purchase of property, plant and equipment and intangible assets“Purchase of property, plant and equipment and intangible assets” includes cash outflows from purchasing
long-term prepaid expenses that are included in “Other non-current assets” in the condensed interim
consolidated statements of financial position.
(2) Presentation of cash flow regarding finance leases
Once the Company purchases telecommunications equipment for the purpose of assembly, installation andinspection, the Company sells the equipment to lease companies for sale and leaseback purposes. The leased
asset and lease obligation are recorded in the condensed interim consolidated statements of financial position.
The cash outflows from the purchase of the equipment from vendors are included in “Purchase of property, plantand equipment and intangible assets" under cash flows from investing activities, and the cash inflows from thesale of the equipment to lease companies are included in “Proceeds from long-term interest-bearing debt" undercash flows from financing activities.

43