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 2 of this report.

SOFTBANK CORP.
CONSOLIDATED FINANCIAL REPORTFor the three-month period ended June 30, 2011
Tokyo, July 28, 2011

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

Net sales

Operating income

Ordinary income

Net income

Amount%Amount%Amount%Amount%Three-month period ended
June 30, 2011

¥764,237

9.0¥175,825

12.3¥151,230

19.2¥94,791387.6

Three-month period ended
June 30, 2010

¥700,840

5.2¥156,603

44.6¥126,844

61.0¥19,438(29.0)

Note: Comprehensive income
Three-month period ended June 30, 2011:
Three-month period ended June 30, 2010:

Three-month period ended
June 30, 2011
Three-month period ended
June 30, 2010

¥104,007 million (329.6%)¥24,207 million ( - %)Net income
per share－basic(yen)

Net income
per share－diluted(yen)¥87.35¥83.91¥17.96¥17.39(2) Financial Condition(Millions of yen; amounts less than one million yen are omitted.)

Total assets

Total equity

Equity ratio (%)

As of June 30, 2011

¥4,483,109¥1,013,162

16.8

As of March 31, 2011

¥4,655,725¥879,618

13.3

Note: Shareholders’equity (consolidated)
As of June 30, 2011:¥751,777 million
As of March 31, 2011:¥619,252 million

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

First quarter

Dividends per share
Third quarter

Second quarter

Fourth quarter

Total

(yen)

(yen)

(yen)

(yen)

(yen)

-

0.00

-

5.00

5.00

-

-

-

-

-

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

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

Net sales
Amount(millions of yen)

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

Net income
Amount%

Net income
per share－basic(yen)(millions of yen)First-half financial year

¥-

-

¥- -

¥-

-

¥- -

¥-

Full financial year

¥-

-

¥- -

¥-

-

¥- -

¥-

Note:

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

4. Others(1) Significant Changes in Scope of Consolidation (Changes in Scope of Consolidation of Specified Subsidiaries):(2) Application of special accounting methods for preparation for the consolidated financial statements:

NoNo(3) Changes in accounting policies, accounting estimates and retrospective restatements in the consolidated financial statements[1] Changes due to revisions in accounting standards:
No[2] Changes other than those in [1]:No
[3] Changes in accounting estimates:
No[4] Retrospective restatements:
No(4) Number of shares issued (Common stock)[1] Number of shares issued (including treasury stock):
As of June 30, 2011:
As of March 31, 2011:

1,107,728,781 shares
1,082,530,408 shares[2] Number of treasury stock:
As of June 30, 2011:
As of March 31, 2011:

183,322 shares
180,503 shares[3] Weighted average number of common stock:
As of June 30, 2011:
As of June 30, 2010:

1,085,217,816 shares
1,082,335,888 shares* Implementation status of quarterly review proceduresThis quarterly consolidated financial report is not subject to quarterly review procedures based on Financial Instruments and Exchange Act and thereview procedures for the quarterly consolidated financial statements were being conducted when this report was disclosed.

* Note to forecasts on the consolidated operating results and other items
The forecast figures are estimated based on the information which SOFTBANK CORP. is able to obtain at the present point and assumptions which are
deemed to be reasonable. However, actual results may be different due to various factors. Please refer to page 16 “1. Qualitative Information
Regarding Three-month Period Results (3) Qualitative Information Regarding Consolidated Earnings Forecasts” for details of notes to precondition andusage for forecasts.
SOFTBANK CORP.'s Earnings Results Briefing will be held for media, institutional investors, and financial institutions on July 28, 2011 followed by
the Analysts Briefing for institutional investors and financial institutions on July 29, 2011. The Earnings Results Briefing will be streamed live on the
Company's Web site in Japanese and English at (http://www.softbank.co.jp/en/irinfo/). The material used in the Analysts Briefing will be uploaded the
day before the briefing and the video on demand will be made available as soon as possible on the Company’s Web site afterwards.

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the three-month period ended June 30, 2011

(Appendix)

Contents
1.

Qualitative Information Regarding Three-month Period Results

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

p.2

1. Consolidated Results of Operations

p.2

2. Results by Business Segment

p.4（Reference 1: Principal Operational Data）

p.8（Reference 2: Capital Expenditure and Depreciation）

p.11(2) Qualitative Information Regarding Consolidated Financial Position
1. Assets, Liabilities and Equity

p.12

2. Cash Flows

p.14（Reference: Major Financing Activities）

2.

p.12

p.15

(3) Qualitative Information Regarding Consolidated Earnings Forecasts

p.16

Consolidated Financial Statements

p.17(1) Consolidated Balance Sheets

p.17(2) Consolidated Statements of Income and Consolidated Statements of Comprehensive
Incomep.19(3) Consolidated Statements of Cash Flows

p.21(4) Significant Doubt About Going Concern Assumption

p.23(5) Notes

p.23(6) Segment Information

p.24(7) Significant Changes in Shareholders’ Equity

p.24(8) Significant Subsequent Events

p.25

1

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the three-month period ended June 30, 2011

1.

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

Consolidated Results of Operations<Overview of results for the three-month period from April 1 to June 30, 2011>
For the three-month period ended June 30, 2011 (hereafter “the period”), the SOFTBANK Group (hereafter “theGroup”) achieved consolidated net sales of ¥764,237 million, a ¥63,397 million (9.0%) increase compared with thesame period of the previous fiscal year (April 1 to June 30, 2010, hereafter “year on year”), with a ¥19,221 million(12.3%) increase in operating income to ¥175,825 million. This consolidated revenue and profit growth was
driven by strong performance in the Mobile Communications segment. Ordinary income grew ¥24,385 million(19.2%) to ¥151,230 million.

Net income rose ¥75,352 million (387.6%) to ¥94,791 million. This was largely

attributable to a year-on-year rise of ¥19,430 million in special income, and a ¥25,724 million decline in total
income taxes.
Note:
Definition of terms: as used in this consolidated financial report for the three-month period from April 1, 2011, to June 30, 2011, references to“the Company,” “the Group” and “the SOFTBANK Group” are to SOFTBANK CORP. and its consolidated subsidiaries except as the context
otherwise requires or indicates.

The main factors affecting earnings for the period were as follows:(a) Net Sales
Net sales totaled ¥764,237 million, for a ¥63,397 million (9.0%) year-on-year increase. This was mainly the
result of strong growth in the number of mobile phone subscribers combined with a rise in the number of mobile
handsets shipped1 in the Mobile Communications segment.
Note:
1.

Handsets shipped: handsets shipped (sold) to agents.

(b) Cost of Sales
Cost of sales rose ¥34,159 million (11.1%) year on year to ¥341,340 million. This was mainly due to higher costof goods on the increase in the number of mobile handsets shipped in the Mobile Communications segment, alongwith higher depreciation and amortization expenses mainly relating to the installation of additional base stations.

(c) Selling, General and Administrative Expenses
Selling, general and administrative expenses grew ¥10,016 million (4.2%) year on year to ¥247,071 million.
This was mainly because of increased sales commissions2 associated with the increase in the number of mobile
handsets sold3 in the Mobile Communications segment.
Notes:
2.

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

3.

Handsets sold: total of new subscriptions and handset upgrades.

(d) Operating Income
As a result, operating income totaled ¥175,825 million, for a ¥19,221 million (12.3%) year-on-year increase. The
operating margin rose 0.7 of a percentage point year on year, to 23.0%.

2

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the three-month period ended June 30, 2011(e) Non-operating Income / Expenses
Non-operating income totaled ¥3,262 million, a ¥39 million year-on-year increase.
stood at ¥27,857 million, a ¥5,124 million year-on-year decrease.

Non-operating expenses

This was mainly because interest expensedecreased by ¥5,382 million as SOFTBANK MOBILE Corp. (hereafter “SOFTBANK MOBILE”) continued to
repay borrowings.

(f) Ordinary Income
Ordinary income therefore totaled ¥151,230 million, for a ¥24,385 million (19.2%) year-on-year increase.

(g) Special Income
Special income totaled ¥20,356 million. Dilution gain from changes in equity interest amounted to ¥15,424
million.

The main component of this was a dilution gain from changes in equity interest of ¥13,950 million

recorded mainly in relation to the Company’s equity method affiliate Renren, Inc.’s listing on the New York Stock
Exchange, in May 2011.

(h) Special Loss
Special loss was ¥380 million.

(i) Income Taxes
Provisions for current income taxes were ¥27,954 million and provisions for deferred income taxes were ¥32,246
million.

Total income taxes decreased ¥25,724 million year on year to ¥60,200 million. The decrease in total

income taxes was mainly attributable to the absence of ¥26,450 million of income taxes-corrections recorded in
the previous fiscal year.

(j) Minority Interests in Net Income
Minority interests in net income totaled ¥16,215 million, mainly through booking net income at Yahoo Japan
Corporation (hereafter “Yahoo Japan”).

(k) Net Income
As a result of the above, net income totaled ¥94,791 million, for a ¥75,352 million (387.6%) year-on-yearincrease.

(l) Comprehensive Income
Comprehensive income was ¥104,007 million. Of this, comprehensive income attributable to owners of theparent was ¥87,877 million and comprehensive income attributable to minority interests came to ¥16,129 million.

3

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the three-month period ended June 30, 20112.

Results by Business Segment

Note:
Principal operational data is shown on pages 8-10 “(Reference 1: Principal Operational Data).”(a) Mobile Communications(Millions of yen)Three-month Period
Ended
June 30, 2010

Three-month Period
Ended
June 30, 2011

Net sales

441,078

514,09073,012

16.6%

Operating income

102,657

116,491

13,83413.5%

4・ 730,000 net subscriber additions
・ ARPU

5

ChangeChange %for the period

for the period was ¥4,210, an ¥80 year-on-year decrease. Out of this, data ARPU amounted to¥2,440, a ¥190 year-on-year increase.
Notes:
4.

The number of net subscriber additions includes prepaid mobile phones and communication module service subscribers.
Net communication module service subscriber additions for the period totaled 158,800.

5.

Average Revenue Per User (rounded to the nearest ¥10).
Revenue and number of mobile phone subscribers include prepaid mobile phones and communication module service subscribers.
For the Mobile Communications segment, the term “ARPU” used alone indicates the total of the basic monthly charge plus voice ARPU
plus data ARPU.

< Overview of Operations >The segment’s net sales increased by ¥73,012 million (16.6%) year on year to ¥514,090 million. The revenue
growth was driven by a continuing strong upward trend in the number of mobile phone subscribers combined withan increase in the number of mobile handsets shipped. In expenses, the segment saw higher cost of goods on theincrease in the number of mobile handsets shipped, and an increase in sales commissions on the higher number ofhandsets sold. In addition, there was a rise in depreciation and amortization expenses mainly relating to theinstallation of additional base stations. As a result, operating income increased by ¥13,834 million (13.5%) year
on year to ¥116,491 million.

<Number of Mobile Phone Subscribers>
Net subscriber additions (new subscribers minus cancellations) for the period totaled 730,000. This net increase
was primarily the result of strong sales of smartphones such as iPhone6 and AndroidTM 7 handsets.

As a result,8

the cumulative number of subscribers at the end of the period stood at 26,138,700, raising SOFTBANKMOBILE’s cumulative subscriber share by 1.7 percentage points year on year, to 21.6%.9
Notes:
6.

iPhone is a trademark of Apple Inc.
The iPhone trademark is used under license from Aiphone K.K.

7.

Android is a trademark or a registered trademark of Google Inc.

8.

The number of cumulative subscribers includes prepaid mobile phones and communication module service subscribers. The cumulative
number of communication module service subscribers at the end of the period was 1,467,400.

9.

Calculated by the Company based on Telecommunications Carriers Association statistical data.

4

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the three-month period ended June 30, 2011

< Number of Mobile Handsets Sold/ Shipped >The number of mobile handsets sold increased by 388,000 year on year to 2,550,000, while handsets shipped forthe period increased by 442,000 year on year to 2,493,000. These increases were mainly the result of a favorable
sales and shipment trend of iPhone and Android handsets.

<ARPU>
ARPU for the period declined ¥80 year on year to ¥4,210. Out of this, the sum of the basic monthly charge andvoice ARPU declined ¥260 year on year to ¥1,780, reflecting an increase in devices which do not have voicecommunication functionality and revised access charges between carriers.
¥190 year on year to ¥2,440.

On the other hand, data ARPU rose

This was mainly the result of the continuing increase in the number ofdata-intensive iPhone subscribers.

<Churn Rate and Upgrade Rate>
The churn rate10 for the period was 1.08%, which was 0.06 of a percentage point higher year on year. This wasprimarily because of an increased number of contract terminations of corporate customers.
The upgrade rate10 for the period was 1.28%, which was 0.1 of a percentage point higher year on year. This was
mainly the result of steady upgrades to smartphones such as iPhone 4 and Android handsets.
Note:
10. Calculated with prepaid mobile phones and communication module service subscribers included in the number of subscribers, churn andupgrades, respectively.

<Average Acquisition Cost per Subscriber>
The average acquisition cost per subscriber11 for the period declined ¥1,000 year on year to ¥36,200.
Note:
11. Average commission paid to sales agents per new subscription.
New subscriptions include prepaid mobile phones and communication modules.

5

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the three-month period ended June 30, 2011(b) Broadband Infrastructure(Millions of yen)Three-month Period
Ended
June 30, 2010

Three-month Period
Ended
June 30, 2011

Net sales

49,32344,019(5,303)(10.8%)

Operating income

11,696

10,221(1,474)(12.6%)The segment’s net sales decreased by ¥5,303 million (10.8%) year on year to ¥44,019 million.

This was mainly

ChangeChange %<Overview of Operations>because of the continued decreasing trend in revenue, on a decline in the number of charged lines12 for the ADSL
service. Operating income decreased by ¥1,474 million (12.6%) year on year to ¥10,221 million.
Net subscriber additions for Yahoo! BB hikari with FLET'S13 for the period totaled 177,000, bringing the
cumulative number of contracts at the end of the period to 1,109,000. Combined with installed lines14 for the
ADSL service, this brought the total number of users to 4,118,000.
Notes:
12. Number of installed lines excluding customers whose basic monthly charge is free under promotion campaigns or other promotional
initiatives.
13. A broadband connection service that combines the Internet connection service Yahoo! BB and the FLET’S HIKARI fiber-optic connection
provided by NIPPON TELEGRAPH AND TELEPHONE EAST CORPORATION (“NTT East”) and NIPPON TELEGRAPH AND
TELEPHONE WEST CORPORATION (“NTT West”). FLET’S and FLET’S HIKARI are registered trademarks of NTT East and NTT
West.
14. Number of lines for which connection construction for ADSL line at central office of NTT East or NTT West is complete.

(c) Fixed-line Telecommunications(Millions of yen)Three-month Period
Ended
June 30, 2010

Three-month Period
Ended
June 30, 2011

Net sales

85,87687,492

1,615

1.9%

Operating income

6,661

12,913

6,251

93.8%

ChangeChange %<Overview of Operations>
The segment’s net sales increased by ¥1,615 million (1.9%) year on year to ¥87,492 million. Inter-segment sales
increased due to network provision to the Group telecommunication companies such as SOFTBANK MOBILE,
and contributed to the overall segment’s revenue growth. On the other hand, net sales to third-parties decreased,primarily as a result of the continued decrease in revenue from relay connection voice services such as MYLINE.
Operating income increased by ¥6,251 million (93.8%) to ¥12,913 million. This was mainly due to the increasein net sales, combined with a decrease in telecommunications equipment fees as a result of revised access charges
between carriers.

6

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the three-month period ended June 30, 2011(d) Internet Culture(Millions of yen)Three-month Period
Ended
June 30, 2010

Three-month Period
Ended
June 30, 2011

Net sales

68,40569,610

1,205

1.8%

Operating income

35,57236,605

1,032

2.9%

The segment’s net sales increased by ¥1,205 million (1.8%) year on year to ¥69,610 million.

This was mainly

ChangeChange %<Overview of Operations>due to revenue growth at Yahoo Japan on an increase in listing advertising, as well as growth in game related
services and data center and Yahoo! Shopping sales. While Yahoo Japan saw a decrease in advertisements fromsome major advertisers due to the impact of the Great East Japan Earthquake of March 11, 2011. Operating
income increased by ¥1,032 million (2.9%) year on year to ¥36,605 million. This was primarily the result of adecrease in communications expenses in connection with improved operational efficiency due to direct ownershipof data centers, although sales promotion expenses increased.

7

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the three-month period ended June 30, 2011

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

Fiscal Year Ended March 31, 2011
Q1

Q2

Q3

Q4

Full Year

Q1(Thousands)

Net additions1

696.6

901.0

925.7

1,008.8

3,532.1

730.0(Postpaid)

645.3

833.6

865.4

975.3

3,319.6

697.5(Prepaid)

51.3

67.4

60.3

33.5

212.5

32.5

Market share2 (%)

45.4

53.5

55.8

40.8

48.0

42.7

22,573.2

23,474.2

24,399.925,408.7

26,138.7

19.9

20.3

20.8

21.3

21.6

2,162

2,712

2,605

2,763

10,242

2,550

2,051

2,687

2,736

2,542

10,016

2,493

ARPU5
(Basic monthly charge +voice)

4,290

4,300

4,310

3,940

4,210

4,210

2,030

2,020

1,980

1,570

1,890

1,780

(Data)

2,250

2,290

2,330

2,370

2,310

2,440

37,20037,50037,80035,40036,90036,200

Churn rate7

1.02

0.96

0.91

1.02

0.98

1.08

(3G postpaid)

0.99

0.92

0.86

0.98

0.94

1.03

Upgrade rate7

1.18

1.67

1.43

1.33

1.40

1.28

Cumulative
subscribers1
Market share2(%)(Thousands)

Number of handsets
sold3(Thousands)

Number of handsets
shipped4(Yen per month)(Yen)

Average acquisition cost
per subscriber6(% per month)

Notes:
1.

Includes the number of prepaid mobile phones and communication module service subscribers.

2.

Calculated by the Company based on Telecommunications Carriers Association statistical data.

3.

Handsets sold: total of new subscriptions and handset upgrades.

4.

Handsets shipped: handsets shipped (sold) to agents.

5.

Average Revenue Per User (rounded to the nearest ¥10).
Revenue and number of mobile phone subscribers include prepaid mobile phones and communication modules.
For the Mobile Communications segment, the term “ARPU” used alone indicates the total of the basic monthly charge plus voice ARPU
plus data ARPU.

6.

Average commissions paid to sales agents per new subscription.

7.

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

8

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the three-month period ended June 30, 2011(b) Broadband Infrastructure
Yahoo! BB ADSL
Fiscal Year Ending
March 31, 2012

Fiscal Year Ended March 31, 2011
Q1

Q2

Q3

Q4

Full Year

Q1(Thousands)

Installed lines8

3,609

3,457

3,291

3,150

3,960

3,950

3,890

3,830

2.46

2.39

2.66

2.65

3,009

(Yen per month)

ARPU9 103,710(% per month)

Churn rate11

2.54

2.56

Yahoo! BB hikari with FLET'S
Fiscal Year Ending
March 31, 2012

Fiscal Year Ended March 31, 2011
Q1

Q2

Q3

Q4

Full Year

Q1(Thousands)

Cumulative contracts12

405

575

783

1,310

1,450

1,500

932

1,109

(Yen per month)

ARPU9

1,620

1,620

Broadband Lines
Fiscal Year Ending
March 31, 2012

Fiscal Year Ended March 31, 2011
Q1

Q2

Q3

Q4

Full Year

Q1(Thousands)

Total users13

4,014

4,032

4,074

4,082

4,118

Notes:
8.

Number of lines for which connection construction for ADSL line at central office of NTT East or NTT West is complete.

9.

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

10. Starting in the first quarter of the fiscal year ending March 2012, the index was changed to “ARPU” with the number of installed lines as
the denominator.

According to the new definition ARPU for each quarter of the fiscal year ended March 31, 2011 has been retroactively

adjusted.
11. Starting in the first quarter of the fiscal year ending March 2012 the churn rate is calculated with number of installed lines as thedenominator. According to the new definition the churn rate for each quarter of the fiscal year ended March 2011 has been retroactively
adjusted.
12. Number of users for which connection construction for FLET’S HIKARI line at central office of NTT East or NTT West is complete.
13. Total of the number of installed lines of Yahoo! BB ADSL and cumulative contracts of Yahoo! BB hikari with FLET'S.

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

Fiscal Year Ended March 31, 2011
Q1

Q2

Q3

Q4

Full Year

Q1(Thousands)

Lines

1,668

1,667

1,662

6,600

6,570

6,610

1,671

1,669

(Yen per month)

ARPU14

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

9

6,930

6,650

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the three-month period ended June 30, 2011(d) Internet Culture15
Yahoo! JAPANFiscal Year Ending
March 31, 2012

Fiscal Year Ended March 31, 2011
Q1
(Millions)

Total monthly
page views16
Monthly
uniquebrowsers17

New
standard
Formerstandard
New
standard
Formerstandard

Q2

Q3

Q4

Full Year

Q1

48,043--49,564

52,16048,722

49,67146,75654,631

-

218

-

-

222

244

224

226

222

238

-

-

-

232.8

241.7

Yahoo! Auctions and shopping related18(Billions of yen)Transaction value(quarterly total)

231.5

Notes:
15. Yahoo Japan has changed its items and method of its quarterly disclosure information starting with the fourth quarter of the fiscal year
ended March 31, 2011. The figures Yahoo Japan discloses starting the fourth quarter of the fiscal year ended March 31, 2011 arereferred to as the “new standard”, while those previously disclosed are referred to as the “former standard.”
16. Number of accesses to Yahoo! JAPAN Group Web sites during each quarter
New standard: quarterly average. Figures for the second and third quarter of the fiscal year ended March 31, 2011 are not disclosed by
Yahoo Japan.
Former standard: number of total monthly page views during the last month of each quarter.
17. Number of browsers accessing Yahoo! JAPAN services during each quarter
New standard: quarterly average. Figures for the second and third quarter of the fiscal year ended March 31, 2011 are not disclosed by
Yahoo Japan.
Former standard: number of browsers during the last month of each quarter.
18. Shopping related includes Yahoo! Shopping, Yahoo! Ticket and Yahoo! Travel transaction values.

10SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the three-month period ended June 30, 2011

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

Fiscal Year Ended March 31, 2011
Full Year

Fiscal Year Ending
March 31, 2012
Q1

Q1

Q2

Q3

Q4

MobileCommunications

25,98765,387116,324

143,826

351,525

84,076

Broadband
Infrastructure

3,319

3,294

5,076

5,160

16,850

5,739

Fixed-line
Telecommunications

5,112

6,362

9,095

15,66536,236

6,320

Internet Culture

1,906

1,908

2,783

4,114

10,713

3,349

Others

1,216

1,559

1,148

1,340

5,265

1,710

Consolidated total

37,54278,513

134,428

170,107420,591

101,196(b) Depreciation (excluding amortization of goodwill)（Millions of yen）

Fiscal Year Ended March 31, 2011
Q1

Q2

Q3

Q4

36,636

37,63640,051

42,668

156,993

45,214

4,234

3,968

3,965

3,672

15,840

3,424

9,104

9,242

9,290

8,997

36,634

8,921

Internet Culture

2,169

2,307

2,412

2,533

9,422

2,291

Others

1,445

1,482

1,608

1,508

6,045

1,521

Consolidated total

53,59054,63757,32959,379224,937

61,374

MobileCommunications
Broadband
Infrastructure
Fixed-line
Telecommunications

11

Full Year

Fiscal Year Ending
March 31, 2012
Q1

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the three-month period ended June 30, 2011(2) Qualitative Information Regarding Consolidated Financial Position
1.

Assets, Liabilities and Equity

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

As of March 31, 2011

As of June 30, 2011

YoY

YoY %

Total assets

4,655,725

4,483,109(172,615)(3.7%)

Total liabilities

3,776,107

3,469,947(306,159)(8.1%)

Total equity

879,618

1,013,162

133,544

15.2%(a) Current Assets
Current assets at the end of the period totaled ¥1,658,549 million, for a ¥204,067 million (11.0%) decrease fromthe previous fiscal year-end.

The primary components of the change were as follows:

・ Cash and deposits decreased by ¥117,230 million from the previous fiscal year-end.

This is mainly due to1

repayments of borrowings, such as the SBM loan, and income tax payments for BB Mobile’s income tax
under consolidated tax return2 and at Yahoo Japan.
・ Notes and accounts receivable–trade decreased by ¥52,600 million.

This was mainly because of sales of

installment sales receivables at SOFTBANK MOBILE.
Notes:
1.

The loan procured under a whole business securitization scheme as part of the loan for procurement of the acquisition finance for2.

BB Mobile and its wholly owned subsidiaries including SOFTBANK MOBILE adopt the consolidated taxation system.

Vodafone K.K. (currently SOTBANK MOBILE).

(b) Fixed Assets
Fixed assets totaled ¥2,822,572 million at the end of the period, for a ¥30,846 million (1.1%) increase from theprevious fiscal year-end. The primary components of the change were as follows:・ Total property and equipment increased ¥34,654 million from the previous fiscal year-end, primarily on a¥77,276 million increase from new acquisitions of telecommunications equipment.
・ Total intangible assets decreased ¥11,095 million from the previous fiscal year-end.

This was mainly becauseof a ¥15,643 million decrease resulting from regular amortization of the goodwill recorded when the Company
acquired SOFTBANK MOBILE and SOFTBANK TELECOM Corp. On the other hand, software increasedby ¥6,812 million as a result of new acquisitions of telecommunications equipment.
・ Investments and other assets increased by ¥7,287 million from the previous fiscal year-end.

This was mainly

because of a ¥13,942 million increase in investment securities.

(c) Current Liabilities
Current liabilities at the end of the period totaled ¥1,539,666 million, for a ¥104,741 million (6.4%) decrease fromthe previous fiscal year-end.

The primary components of the change were as follows:・ Accounts payable-other and accrued expenses increased by ¥180,536 million from the previous fiscal year-end.

This was mainly the result of transferring ¥200,000 million from long-term liabilities–other to current liabilities
as an amount scheduled to be paid to Vodafone International Holdings B.V. and Vodafone Overseas Finance12

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the three-month period ended June 30, 2011

Limited (hereafter “the Vodafone Group”) in April 2012, as part of a transaction made with the Vodafone Groupin December 2010.
・ The current portion of corporate bonds decreased by ¥113,500 million from the previous fiscal year-end.

This

was mainly due to payments of ¥60,000 million to redeem the 27th Unsecured Straight Corporate Bond, and¥53,500 million to redeem the 25th Unsecured Straight Corporate Bond.
・ Income taxes payable decreased by ¥75,824 million.

This was mainly because payments were made forincome tax payable at the previous fiscal year-end while income tax payable was recorded for the period, for BB
Mobile’s income tax under consolidated tax return and at Yahoo Japan.
・ Short-term borrowings decreased by ¥62,330 million from the previous fiscal year-end.

This was mainly

because the Company repaid short-term borrowings, and SOFTBANK MOBILE continued to repay borrowings
procured via the securitization of installment sales receivables.

(d) Long-term Liabilities
Long-term liabilities totaled ¥1,930,281 million at the end of the period, for a ¥201,417 million (9.4%) decrease
from the previous fiscal year-end.

The primary components of the change were as follows:・ Long-term liabilities–Other decreased by ¥197,486 million. This was mainly due to transfer of ¥200,000 million

to accounts payable-other and accrued expenses for the above-mentioned payment scheduled for April 2012 aspart of a transaction with the Vodafone Group, since the payment date came to be within one year.
・ Long-term borrowings decreased by ¥88,088 million.

This was mainly because SOFTBANK MOBILE repaid¥118,671 million of its SBM loan. On the other hand, there was an increase in the Company’s long-termborrowings.
・ Corporate bonds increased ¥79,998 million from the previous fiscal year-end.

This increase mainly reflects anthincrease of ¥100,000 million from the issuance of the 36 Unsecured Straight Corporate Bond and ¥30,000
million from the issuance of the 37th Unsecured Straight Corporate Bond. On the other hand, the Company’s
Convertible Bonds Due 2014 (balance at the previous fiscal year-end ¥49,992 million; hereafter “theConvertible Bonds”) were converted into common stock of the Company.

(e) Equity
Equity totaled ¥1,013,162 million at the end of the period, for a ¥133,544 million (15.2%) increase from theprevious fiscal year-end.

The equity ratio rose 3.5 percentage points from the previous fiscal year-end to 16.8%.

The primary components of the change were as follows:(Shareholders’ equity)
Shareholders’ equity increased ¥139,437 million from the previous fiscal year-end to ¥762,759 million.
・ At the end of the period common stock totaled ¥213,797 million and additional paid-in capital was ¥237,522

million.

This result includes the conversion of abovementioned Convertible Bonds into common stock of theCompany during the period, which increased common stock by ¥25,022 million and additional paid-in capitalby ¥25,011 million.
・ Retained earnings totaled ¥311,689 million at the end of the period, for a ¥89,412 million increase from theprevious fiscal year-end.

This was primarily because net income of ¥94,791 million was recorded, while

13

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the three-month period ended June 30, 2011

payment of dividends from retained earnings of ¥5,411 million was recorded.
(Valuation and translation adjustments)
・ Valuation and translation adjustments of ¥10,982 million were recorded as debit at the end of the period, a¥6,913 million decrease from the previous fiscal year-end.

This was primary a result of a decrease inunrealized gain on available-for-sale securities of ¥10,535 million from the previous fiscal year-end.
(Minority interests)
Minority interests totaled ¥260,586 million at the end of the period, for a ¥924 million increase from the previous
fiscal year-end.
2.

Cash Flows

Cash flows during the period were as follows:
Cash and cash equivalents at the end of the period totaled ¥729,809 million, for a ¥117,346 million decrease fromthe previous fiscal year-end.
(Millions of yen)Three-month Period
Ended
June 30, 2010

Three-month Period
Ended
June 30, 2011

Cash flows from operating activities

132,998

107,035(25,963)

Cash flows from investing activities(75,230)(76,172)(942)(Reference) Free cash flow

57,76830,863(26,905)

Cash flows from financing activities(140,735)(146,980)(6,244)YoY(a) Cash Flows from Operating Activities
Net cash provided by operating activities totaled ¥107,035 million (compared with ¥132,998 million provided in
the same period of the previous fiscal year).
Income before income taxes and minority interests totaled ¥171,206 million and non-cash items were recorded as
positive. The main components of non-cash items are ¥61,374 million in depreciation and amortization and¥15,673 million in amortization of goodwill (both items increase cash flow), and ¥15,387 million from dilution
gain from changes in equity interest, net (decrease in cash flow).

Receivables–trade decreased (increase in cashflow) by ¥51,923 million mainly due to the sale of installment sales receivables at SOFTBANK MOBILE.
Meanwhile, payables-trade decreased by ¥36,927 million due to payments made for mobile handsets procured at
the end of the previous fiscal year at SOFTBANK MOBILE.
Income taxes paid of ¥107,027 million were recorded, for a ¥8,468 million year-on-year increase.
(b) Cash Flows from Investing Activities
Net cash used in investing activities was ¥76,172 million (compared with ¥75,230 million used in the same periodof the previous fiscal year).
Capital expenditures, mainly at telecommunications-related businesses, resulted in outlays of ¥77,800 million forpurchase of property and equipment, and intangibles. Meanwhile, ¥12,867 million was spent for purchases ofmarketable and investment securities, while proceeds from sale of marketable and investment securities generated¥13,569 million.

14

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the three-month period ended June 30, 2011

As a result, free cash flow (the combined net cash flows from operating activities and investing activities) for theperiod was a positive ¥30,863 million (compared with a positive ¥57,768 million in the same period of theprevious fiscal year), for a year-on-year decrease of ¥26,905 million.

(c) Cash Flows from Financing Activities
Net cash used in financing activities was ¥146,980 million (compared with ¥140,735 million used in the same
period of the previous fiscal year).
Outlays were recorded in the amounts of ¥149,641 million for repayments of long-term debt, ¥113,500 million forredemption of corporate bonds, ¥49,793 million for decrease in short-term borrowings, net, and ¥33,603 million
for the repayment of lease obligations.

On the other hand, proceeds from issuance of bonds generated ¥129,370

million, proceeds from long-term debt were ¥50,675 million and proceeds from the sale and lease back ofequipment newly acquired were ¥44,532 million.

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

Company NameSOFTBANK CORP.

Details

Summary

36 Unsecured Straight Corporate Bond
(Fukuoka SoftBank HAWKS Bond)

Issue date: June 17, 2011
Redemption date: June 17, 2016
Total amount of issue: ¥100,000 million
Interest rate: 1.00%/year
Issue date: June 10, 2011
Redemption date: June 10, 2014
Total amount of issue: ¥30,000 million
Interest rate: 0.65%/year
Redemption date: June 10, 2011
Redeemed amount: ¥60,000 million
Redemption date: June 17, 2011
Redeemed amount: ¥53,500 million
Repayment of funds procured via
securitization of mobile handsets
installment sales receivables
Repayment of funds raised via the wholebusiness securitization financing schemeth

37th Unsecured Straight Corporate Bond

Bond
redemption

SOFTBANK CORP.

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

Repayment of
securitization ofreceivables
Repayment of
debt(excluding
securitization ofreceivables
Capitalexpenditure byfinancial lease

SOFTBANK MOBILE Corp.

Repayment of ¥23,419 million

SOFTBANK MOBILE Corp.

Repayment of ¥118,671 million

SOFTBANK MOBILE Corp.
etc.

New capital expenditure via leases

Funds newly procured during the period:¥44,532 million

Please refer to page 25, “2. Consolidated Financial Statements – (8) Significant Subsequent Events” regarding therefinancing of the loan procured under a whole business securitization scheme (SBM loan).

15

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the three-month period ended June 30, 2011(3) Qualitative Information Regarding Consolidated Earnings Forecasts
The Group is planning to focus on network expansion and customer acquisition in the Mobile Communications
segment.

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

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

However, revenue and operating income are expected to increase

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

16

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the three-month period ended June 30, 2011

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

As ofJune 30, 2011

AmountAmountASSETS
Current assets:
Cash and deposits
Notes and accounts receivable - tradeMarketable securities¥861,657¥744,427

657,774

605,173

78,09969,057

Merchandise and finished products

49,88740,723

Deferred tax assets

90,90764,663

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

162,068

175,135(37,778)(40,632)

1,862,617

1,658,549

Buildings and structures

74,86774,560

Telecommunications equipment

840,839

876,155

Telecommunications service lines

68,85667,786

Land

22,882

22,884

Construction in progress

55,66352,900

Other property and equipment

50,33953,815

Total property and equipment

1,113,447

1,148,102

Goodwill

839,238

823,594

Software248,872

255,685

Other intangibles

32,23329,9701,120,345

1,109,249

340,436

354,379

109,145

103,886

123,360

122,169(15,008)
557,933
2,791,726(15,214)565,220
2,822,572

1,381

1,987

¥4,655,725¥4,483,109

Fixed assets:
Property and equipment, net:

Intangible assets, net:

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

17

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the three-month period ended June 30, 2011

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

As ofJune 30, 2011

AmountAmountLIABILITIES AND EQUITYCurrent liabilities:
Accounts payable - trade
Short-term borrowings¥193,644¥156,589

410,950

348,619

Commercial paper

25,00020,000Current portion of corporate bonds
Accounts payable - otherand accrued expenses

128,500

15,000561,421741,958

Income taxes payable

115,355

39,531

Deferred tax liabilities

7,104

6,418

Current portion of lease obligations

131,305

134,551

Other current liabilities

71,12576,997

Total current liabilities

1,644,407

1,539,666

Corporate bonds

507,390

587,388

Long-term debt

Long-term liabilities:
1,030,959

942,871

Deferred tax liabilities

26,582

26,929Liability for retirement benefits

14,414

14,396

Allowance for point mileage

41,94739,605

Lease obligations

199,769

205,939

Other liabilities

310,636

113,150

Total long-term liabilities

2,131,699

1,930,281

Total liabilities

3,776,107

3,469,947

Common stock

188,775

213,797

Additional paid-in capital

212,510

237,522

Retained earnings

222,277

311,689

Less: Treasury stock

(240)

(249)

Total shareholders’ equity

623,321762,759

Unrealized gain on available-for-sale securities

34,92024,384

Deferred gain on derivatives under hedge accounting

11,224

14,530Foreign currency translation adjustments(50,213)(49,897)

Total valuation and translation adjustments(4,068)(10,982)703

798

Minority interests

259,661

260,586

Total equity

879,618

1,013,162¥4,655,725¥4,483,109

Equity:Stock acquisition rights

Total liabilities and equity

18

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the three-month period ended June 30, 2011

(2) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income
Consolidated Statements of Income
Three-month period ended
June 30, 2010
April 1, 2010 toJune 30, 2010
AmountNet sales¥700,840
Cost of sales
307,180
Gross Profit
393,659
Selling, general and administrative expenses
237,055
Operating income
156,603
Interest income
Dividend income
Equity in earnings of affiliated companies(Millions of yen)Three-month period ended
June 30, 2011
April 1, 2011 toJune 30, 2011
Amount¥764,237
341,340
422,897
247,071
175,825

529

560

142

1,146

216

-

Other non-operating income
Non-operating income

2,333

1,555

3,222

3,262

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

27,78922,407

-

863

5,192

4,586

32,981

27,857

126,844

151,230

Gain on sale of investment securities

118

4,932

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

520

15,424

52

-

235

-

Special income

926

20,356

Valuation loss on investment securities
Unrealized loss on valuation of investments at subsidiaries
in the U.S.,net
Other special losses
Special loss

1,431

196

-

76

8,174

107

9,606

380

118,164

171,206

34,101

27,954

Ordinary income

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

26,450-25,37332,246

Total income taxes

85,92560,20032,238111,006

12,80016,215¥19,438¥94,791

Income before minority interests
Minority interests in net income
Net income

19SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the three-month period ended June 30, 2011

Consolidated Statements of Comprehensive Income(Millions of yen)Three-month period ended
June 30, 2010
April 1, 2010 toJune 30, 2010
AmountIncome before minority interests
Other comprehensive loss
Unrealized loss on available-for-sale securities
Deferred gain on derivatives under hedge accounting
Foreign currency translation adjustment
Share of other comprehensive income of affiliatedcompanies accounted for using equity method
Total other comprehensive loss
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners of
the parent
Comprehensive income attributable to minority interests

20

Three-month period ended
June 30, 2011
April 1, 2011 toJune 30, 2011
Amount¥ 32,238¥111,006(9,698)(10,283)

5,916

3,403

(4,976)(2,234)

727

2,114

(8,030)(6,998)24,207104,007

10,312

87,877

13,894

16,129

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the three-month period ended June 30, 2011

(3) Consolidated Statements of Cash Flows(Millions of yen)Three-month period ended
June 30, 2010

Three-month period ended
June 30, 2011

April 1, 2010 toJune 30, 2010

April 1, 2011 toJune 30, 2011

Cash flows from operating activities:
Income before income taxes and minority interests¥118,164¥171,206

Depreciation and amortization

53,59061,374

Amortization of goodwill

15,65015,673Equity in (earnings) losses of affiliated companies

(216)

863

Dilution gain from changes in equity interest, net(518)(15,387)

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

1,431

196

(52)

76

Gain on sale of marketable and investment securities, net(80)(4,956)

Foreign exchange loss (gain), net

162

(75)

Interest and dividend income(672)(1,706)

Interest expense

27,78922,407

Decrease in receivables - trade106,163

51,923

Decrease in payables - trade(14,087)(36,927)(51,234)(31,459)

256,090

233,208

652

1,786

Interest paid

(25,185)(20,931)

Income taxes paid

(98,558)(107,027)

132,998

107,035

Adjustments for:

Changes in operating assets, and liabilities

Other, net
Sub-totalInterest and dividend received

Net cash provided by operating activities- Continued -21

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the three-month period ended June 30, 2011

Consolidated Statements of Cash Flows (Continued)(Millions of yen)Three-month period ended
June 30, 2010

Three-month period ended
June 30, 2011

April 1, 2010 toJune 30, 2010

April 1, 2011 toJune 30, 2011

Cash flows from investing activities:
Purchase of property and equipment, and intangibles¥(58,689)¥(77,800)

Purchase of marketable and investment securities
Proceeds from sale of marketable and investment securities
Acquisition of interests in subsidiaries newly consolidated,
net of cash acquired
Other, net(20,315)(12,867)

2,510

13,569

-

(53)

1,264

978

Net cash used in investing activities(75,230)(76,172)(9,662)(49,793)-(5,000)

Proceeds from long-term debt

20,00050,675

Repayment of long-term debt

(120,184)(149,641)

Cash flows from financing activities:
Decrease in short-term borrowings, net
Decrease in commercial paper, net

Proceeds from issuance of bonds

49,787

129,370

Redemption of bonds(20,404)(113,500)

222

224

Cash dividends paid

(4,303)(4,746)

Cash dividends paid to minority shareholders
Proceeds from sale and lease back of equipment newly acquired(9,886)(14,926)

5,350

44,532

Repayment of lease obligations(49,115)(33,603)

Other, net(2,538)(571)(140,735)(146,980)(1,076)(517)(84,043)(116,634)

1,919

23

(64)

(734)

687,681

847,155¥605,492¥729,809

Proceeds from issuance of shares to minority shareholders

Net cash used in financing activities
Effect of exchange rate changes
on cash and cash equivalents
Net decrease in cash and cash equivalents
Increase in cash and cash equivalents due to newly consolidated
subsidiaries
Decrease in cash and cash equivalents due to exclusion ofpreviously consolidated subsidiaries
Cash and cash equivalents, beginning of the period
Cash and cash equivalents, end of the period

22

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the three-month period ended June 30, 2011(4) Significant Doubt about Going Concern Assumption
There are no applicable items for the three-month period ended June 30, 2011.

(5) Notes(Consolidated Statements of Income)Unrealized appreciation (loss) on valuation of investments and loss on sale of investments at subsidiaries in the United Statesof America, net
Certain subsidiaries of the Company in the United States of America qualify as investment companies under the provisions set
forth in Financial Services – Investment Companies of the FASB Accounting Standards Codification Topic 946 (ASC 946) andaccount for investment securities in accordance with ASC 946.
The net changes in the fair value of the investments are recorded as unrealized appreciation (loss) on valuation of investments
and loss on sale of investments at subsidiaries in the U.S., net and loss on sale of investments, computed based on theacquisition cost, is also included in this account. The unrealized appreciation (loss) on valuation of investments and loss onsale of investments included in unrealized appreciation (loss) on valuation of investments and loss on sale of investments at
subsidiaries in the U.S., net in the consolidated statements of income are as follows:
Three-month period ended
June 30, 2010
Unrealized appreciation (loss) on valuation of investment
at subsidiaries in the U.S.,net
Loss on sale of investments
at subsidiaries in the U.S.,net
Total

Three-month period ended
June 30, 2011

179

(76)

(127)

-

52 million yen(76)

million yen(Consolidated Statements of Cash Flows)
1. Scope of Purchase of property and equipment, and intangibles in the consolidated statements of cash flows“Purchase of property and equipment, and intangibles” are comprised of cash outflows from purchasing property andequipment, and intangible assets (excluding goodwill) and long-term prepaid expenses.
2. Proceeds from sale and lease back of equipment newly acquired
Once SOFTBANK MOBILE and others purchase telecommunications equipment for the purpose of assembly, installation andinspection, SOFTBANK MOBILE and others sell the equipment to lease companies under sale and lease back arrangements.
The leased asset and lease obligation are recorded in the consolidated balance sheets.
The cash outflows from the purchase of the equipment from vendors are included in “Purchase of property and equipment, andintangibles” and the cash inflows from the sale of the equipment to lease companies are included in “Proceeds from sale andlease back of equipment newly acquired.”23

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the three-month period ended June 30, 2011(6) Segment Information
1. Net sales and segment profit or loss of reportable segments for the three-month period ended June 30, 2010
(Millions of yen)
Reconciliations toReportable segments
Other
MobileBroadband

Fixed-line

1

Amounts in consolidated

Total

Internetconsolidated statementof income 2

Subtotalstatement of income 3

Communications

Infrastructure

Telecommunications

Culture¥438,520¥48,552¥73,199¥67,142¥627,414¥73,425¥700,840¥-¥700,840

2,558

770

12,677

1,262

17,268

8,457

25,726(25,726)-

Total

441,078

49,32385,876

68,405644,683

81,882

726,566(25,726)

700,840

Segment profit¥102,657¥11,696¥6,661¥35,572¥156,587¥2,562¥159,150¥(2,546)¥156,603

Net sales
Customers
Inter-segment

Notes:
1. The PC software and peripherals distribution business and Fukuoka SOFTBANK HAWKS related business are included in “Other.”
2. Amounts in the column “Reconciliations to consolidated statement of income” of ¥(2,546) million represent elimination of intersegment
transactions and expenses of the corporate division of the Company, which totaled ¥537 million and ¥(3,084) million, respectively.
3. Segment profit is adjusted with operating income in the consolidated statements of income.

2. Net sales and segment profit or loss of reportable segments for the three-month period ended June 30, 2011
(Millions of yen)
Reconciliations toReportable segments
Other
MobileBroadband

Fixed-line

1

Amounts in consolidated

Total

Internetconsolidated statementof income 2

Subtotalstatement of income 3

Communications

Infrastructure

Telecommunications

Culture¥512,216¥40,764¥69,718¥68,631¥691,330¥72,906¥764,237¥-¥764,237

1,874

3,255

17,773

97823,882

8,649

32,531(32,531)-

Total

514,09044,01987,492

69,610715,21381,556

796,769(32,531)764,237

Segment profit¥116,491¥10,221¥12,913¥36,605¥176,231¥2,405¥178,637¥(2,811)¥175,825

Net sales
Customers
Inter-segment

Notes:
1. The PC software and peripherals distribution business and Fukuoka SOFTBANK HAWKS related business are included in “Other.”
2. Amounts in the column “Reconciliations to consolidated statement of income” of ¥(2,811) million represent elimination of intersegment
transactions and expenses of the corporate division of the Company, which totaled ¥259 million and ¥(3,071) million, respectively.
3. Segment profit is adjusted with operating income in the consolidated statements of income.

(7) Significant Changes in Shareholders’ Equity
There are no applicable items for the three-month period ended June 30, 2011.

24

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the three-month period ended June 30, 2011(8) Significant Subsequent Events
For the three-month period ended June 30, 2011
Refinance of SBM loan
The Board of Directors of the Company passed a resolution on July 21, 2011 to execute a ¥550.0 billion loan with a syndicate of 17 financial
institutions in Japan and overseas, and the Company borrowed a partial loan amount of ¥352.5 billion on July 27, 2011. This arrangement is torefinance the ¥1,366.0 billion loan to SOFTBANK MOBILE (hereafter “SBM loan”, ¥653.9 billion of which was outstanding as of the end of June2011) procured in November 2006 by Mizuho Trust & Banking Co., Ltd, the “Tokutei Kingai Trust Trustee” under the whole businesssecuritization scheme. The SBM loan was associated with the series of financing transactions for the Company to acquire Vodafone K.K(currently SOFTBANK MOBILE). SOFTBANK MOBILE repaid ¥369.4 billion on July 27, 2011 and will pay ¥284.5 billion on October 27,
2011 to pay off the SBM loan with the funds procured by the Company and its fund in hand.
1. Summary of the financing
Name of lender

Syndicate group comprising a total of 17 financial institutions in Japan andoverseas including the co-mandated lead arrangers, Mizuho Corporate Bank,
Ltd. and four other financial institutions

Total amount of borrowings¥550.0 billion(1) Facility A1: ¥100.0 billion(2) Facility A2: ¥252.5 billion(3) Facility B: ¥197.5 billion

Interest rate(1) Facility A1: 1 month TIBOR + spread (variable rate)(2) Facility A2: 3 months TIBOR + spread (variable rate)(3) Facility B: 3 months TIBOR + spread (variable rate)
Reference 1: As of July 25, 1 month TIBOR 0.18%
As of July 25, 3 months TIBOR 0.34%
Reference 2: Spread ranges from 0.75% to 1.275% based on the Company’s
issuer rating.
Spread based on the rating as of July 25:1.125%

Loan execution dateJuly 27, 2011: ¥352.5 billion(Installment)

October 27, 2011: ¥197.5 billion

Repayment schedule

March 27, 2013: ¥150.0 billion(Scheduled payment)

March 27, 2014: ¥200.0 billion
March 27, 2015: ¥200.0 billion

Main financial covenants

・The amount of the Company’s net assets at the end of the year must not fall
below 75% of the Company’s net assets at the end of the previous year.
・The consolidated balance sheets of the Company and BB Mobile Corp. at theend of the year must not show a net capital deficiency. The balance sheetsof SOFTBANK MOBILE, SOFTBANK BB, and SOFTBANKTELECOM at the end of the year must not show a net capital deficiency.

Collateral/Guarantee

Not applicable25

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the three-month period ended June 30, 2011

2. Purpose and effect of the refinance
The refinance aims to significantly reduce the Company’s interest burden, by enabling the Company to obtain financing at an interest rate
reflecting the improvement of the Company’s credit status. Interest expenses for the SBM loan of ¥50,928 million and ¥11,527 million
were recorded in the consolidated statements of income for the year ended March 31, 2011 and three-month period ended June 30, 2011,
respectively.

Complete repayments of the SBM loan will lift the financial covenants stipulated in the SBM loan Agreement andterminate the security interest associated with the SBM loan for the three-month period ending December 31, 2011.
(Reference) Assets pledged as collateral for the SBM loan
As of June 30, 2011
Cash and deposits

235,485

Notes and accounts receivable - trade309,737

Buildings and structures

11,396

Telecommunications equipment

295,258

Telecommunications service lines

68

Land

10,747

Investments and other assets - other assets

9,990

Total

872,684 million yen

Note: Consolidated subsidiaries shares owned by SOFTBANK MOBILE, SOFTBANK MOBILE shares owned by BB Mobile Corp.
and BB Mobile Corp. shares owned by Mobiletech Corporation are pledged as collateral in addition to the assets pledged ascollateral above.
3. Others
The Company expects to record approximately ¥23.0 billion as non-operating expenses and ¥22.0 billion as special loss in the
consolidated statements of income for the year ending March 31, 2012. This includes cost associated with the abovementioned
syndicated loan, the repayments of the SBM loan (cancel fee for interest hedge, etc.) and prepayment premium.

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