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 REPORTFor the six-month period ended September 30, 2011
Tokyo, October 27, 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%Six-month period ended
September 30, 2011

¥1,535,647

4.8¥373,223

18.3¥314,485

23.9¥217,252

182.7

Six-month period ended
September 30, 2010

¥1,465,021

8.6¥315,521

36.8¥253,843

46.3¥76,839

8.6

Note: Comprehensive income
Six-month period ended September 30, 2011:
Six-month period ended September 30, 2010:

Six-month period ended
September 30, 2011
Six-month period ended
September 30, 2010

¥ 196,326million (132.7%)¥84,362 million (－%)

Net income
per share－basic(yen)

Net income
per share－diluted(yen)¥198.15¥192.28¥70.99¥68.32(2) Financial Condition(Millions of yen; amounts less than one million yen are omitted.)

Total assets

Total equity

Equity ratio (%)

As of September 30, 2011

¥4,551,142¥1,291,583

18.0

As of March 31, 2011

¥4,655,725¥879,618

13.3

Note: Shareholders’equity
As of September 30, 2011:
As of March 31, 2011:¥819,438 million¥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

Second quarter

Dividends per share
Third quarter

Fourth quarter

Total

(yen)

(yen)

(yen)

(yen)

(yen)

-

0.00

-

5.00

5.00

-

0.00
-

-

-

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)

Full financial year¥-

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

¥- -

¥-

-

Net income
Amount%

Net income
per share－basic(yen)(millions of yen)

¥- -

¥-

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 for shareholders 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):
Newly consolidated: One company SFJ Capital Limited
Excluded: None
Note: Please refer to page 18 “2. Notes on the Summary Information” for details.
(2) Application of special accounting methods for preparation for the consolidated financial statements:

Yes

No

(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 September 30, 2011:
As of March 31, 2011:

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

4,184,202 shares
180,503 shares[3] Weighted average number of common stock:
As of September 30, 2011:
As of September 30, 2010:

1,096,420,607shares
1,082,342,821shares* 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 17 “1. Qualitative Information
Regarding Six-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 October 27, 2011 followedby the Analysts Briefing for institutional investors and financial institutions on October 28, 2011. The Earnings Results Briefing will be streamed liveon 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 REPORT
for the six-month period ended September 30, 2011

(Appendix)

Contents
1.

Qualitative Information Regarding Six-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.5（Reference 1: Principal Operational Data）

p.9（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.15（Reference: Major Financing Activities）

2.

3.

p.12

p.16

(3) Qualitative Information Regarding Consolidated Earnings Forecasts

p.17

Notes on the Summary Information

p.18

(1)

p.18

Significant Changes in Scope of Consolidation

Consolidated Financial Statements

p.19(1) Consolidated Balance Sheets

p.19(2) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income

p.21(3) Consolidated Statements of Cash Flows

p.25(4) Significant Doubt About Going Concern Assumption

p.27(5) Notes

p.27(6) Segment Information

p.29(7) Significant Changes in Shareholders’ Equity

p.29(8) Significant Subsequent Events

p.30

1

SOFTBANK CORP. CONSOLIDATED FINANCIAL REPORT
for the six-month period ended September 30, 2011

1.

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

Consolidated Results of Operations<Overview of results for the interim period from April 1 to September 30, 2011>
For the six-month period ended September 30, 2011 (hereafter “the interim period”), the SOFTBANK Group(hereafter “the Group”) achieved consolidated net sales of ¥1,535,647 million, a ¥70,625 million (4.8%) increase
compared with the same period of the previous fiscal year (April 1 to September 30, 2010, hereafter “year onyear”), with a ¥57,701 million (18.3%) increase in operating income to ¥373,223 million.

This consolidated

revenue and profit growth was driven by strong performance in the Mobile Communications segment.
Ordinary income grew ¥60,641 million (23.9%) to ¥314,485 million.
to ¥217,252 million.

Net income rose ¥140,413 million (182.7%)

This was largely attributable to a year-on-year rise of ¥95,826 million in special income, in

addition to the increase in operating income.
Note:
Definition of terms: as used in this consolidated financial report for the six-month period from April 1, 2011, to September 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 interim period were as follows:(a) Net Sales
Net sales totaled ¥1,535,647 million, for a ¥70,625 million (4.8%) year-on-year increase. This was mainly the
result of increased telecom service revenue backed by steady growth in the number of mobile phone subscribers in
the Mobile Communications segment. On the other hand, an increase in the portion of lower-priced handsets
such as Mimamori Phone, a handset with a security buzzer, resulted in a slight decrease in the aggregate sales ofmobile handsets in the same segment, despite a rise in the number of handsets shipped.1
Note:
1.

Handsets shipped: handsets shipped (sold) to agents(b) Cost of Sales
Cost of sales rose ¥5,471 million (0.8%) year on year to ¥670,967 million. This was primarily due to higher
depreciation and amortization expenses, mainly relating to the installation of additional base stations in the Mobile
Communications segment. On the other hand, an increase in the portion of lower-priced handsets resulted in adecrease in the aggregate cost of sales for mobile handsets in the same segment, despite a rise in the number ofhandsets shipped.

(c) Selling, General and Administrative Expenses
Selling, general and administrative expenses grew ¥7,452 million (1.5%) year on year to ¥491,456 million. Thiswas mainly because of increased sales commissions2 in the Mobile Communications segment, such as higher
upgrade related cost, while subscriber acquisition cost decreased due to an increase in the portion of handsets thathave a lower acquisition cost per subscriber.
Note:
2.

Sales commissions paid to sales agents per new subscription and upgrade purchase2

SOFTBANK CORP. CONSOLIDATED FINANCIAL REPORT
for the six-month period ended September 30, 2011(d) Operating Income
As a result, operating income totaled ¥373,223 million, for a ¥57,701 million (18.3%) year-on-year increase. The
operating margin rose 2.8 percentage points year on year, to 24.3%.

(e) Non-operating Income / Expenses
Non-operating income totaled ¥6,768 million, a ¥434 million year-on-year increase. Non-operating expenses
stood at ¥65,506 million, a ¥2,505 million year-on-year decrease. Interest expense decreased by ¥14,033 million
as SOFTBANK MOBILE Corp. (hereafter “SOFTBANK MOBILE”) repaid its SBM loan.3 Meanwhile, theCompany refinanced part of SBM loan during the interim period, and recorded refinancing related expenses of¥13,606 million comprising expenses relating to this financing and expenses associated with the continued
repayment of SBM loan, which amounted to ¥12,695 million.
Note:
3.

The loan procured under a whole business securitization scheme as part of the loan for procurement of the acquisition finance for
Vodafone K.K. (currently SOFTBANK MOBILE)(f) Ordinary Income
Ordinary income therefore totaled ¥314,485 million, for a ¥60,641 million (23.9%) year-on-year increase.

(g) Special Income
Special income totaled ¥102,730 million.

The main components of this were gain on sale of investment

securities of ¥83,527 million and dilution gain from changes in equity interest of ¥17,158 million.
The gain on sale of investment securities was primarily attributable to a ¥76,430 million gain on sale of Yahoo!
Inc. shares. In connection with the Company’s financing of US$1,135 million from CITIBANK, N.A. throughits U.S. subsidiary in February 2004, certain forward contracts (“collar transaction”) were entered into, whichallowed the obligation to be settled at maturity by delivering Yahoo! Inc. shares held by the Company’s subsidiary.
The forward contracts were to effectively hedge the variability of cash flows associated with the future market
price of the underlying security.
During the interim period, the obligation under the forward contracts was settled at maturity by effectively
delivering the shares of Yahoo! Inc. (book basis of US$142 million) to CITIBANK, N.A.

The cash proceeds

received by the Company`s subsidiary from delivering the shares of Yahoo! Inc. to CITIBANK, N.A. were thenremitted to repay the related obligation. Gain on sale of investment securities of ¥76,430 million (US$993
million) was recorded as a result of settling the forward contracts.
Dilution gain from changes in equity interest was 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 ¥9,154 million. Valuation loss of ¥8,920 million was recorded mainly associated with the dropin the stock price of Betfair Group plc in which the Group holds shares.

3

SOFTBANK CORP. CONSOLIDATED FINANCIAL REPORT
for the six-month period ended September 30, 2011(i) Income Taxes
Provisions for current income taxes were ¥101,361 million and provisions for deferred income taxes were ¥57,337
million.

Total income taxes increased ¥18,044 million year on year to ¥158,699 million.

(j) Minority Interests in Net Income
Minority interests in net income totaled ¥32,108 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 ¥217,252 million, for a ¥140,413 million (182.7%) year-on-yearincrease.

(l) Comprehensive Income
Comprehensive income was ¥196,326 million. Of this, comprehensive income attributable to owners of theparent was ¥166,373 million and comprehensive income attributable to minority interests came to ¥29,952 million.

4

SOFTBANK CORP. CONSOLIDATED FINANCIAL REPORT
for the six-month period ended September 30, 2011

2. Results by Business Segment
Note:
Principal operational data is shown on pages 9-10 “(Reference 1: Principal Operational Data).”(a) Mobile Communications(Millions of yen)Six-month Period
Ended
September 30, 2010

Six-month Period
Ended
September 30, 2011

Net sales

940,044

1,020,937

80,892

8.6%

Operating income

207,203

250,086

42,883

20.7%

ChangeChange %4

・ 1,489,700 net subscriber additions

for the interim period
for the second quarter was ¥4,310, a ¥10 year-on-year7 increase.
¥2,520, a ¥240 year-on-year increase.

・ ARPU

5

6

Data ARPU amounted toNotes:
4.

The number of net subscriber additions includes prepaid mobile phones and communication module service subscribers.
Net communication module service subscriber additions for the interim period totaled 374,100, which included an increase of 215,300 in
the second quarter.

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.

6.

The three-month period ended September 30, 2011 (from July 1 to September 30, 2011)

7.

Compared to the three-month period ended September 30, 2010 (from July 1 to September 30, 2010)< Overview of Operations >The segment’s net sales increased by ¥80,892 million (8.6%) year on year to ¥1,020,937 million.

Telecom

service revenue increased, driven by a continuing steady increase in the number of mobile phone subscribers.
Sales of mobile handsets slightly decreased as a result of increased shipments of lower-priced handsets such as
Mimamori Phone, despite the increased number of overall handsets shipped.
The segment’s operating expenses grew ¥38,009 million (5.2%) year on year to ¥770,850 million.

The

segment saw higher depreciation and amortization, mainly relating to the installation of additional base stations.
Cost of sales for mobile handsets decreased as a result of increased shipments of lower-priced mobile handsets,
despite the increased number of overall handsets shipped.

Sales commissions increased mainly on higher

upgrade related cost, while subscriber acquisition cost decreased due to an increase in the portion of handsets thathave a lower acquisition cost per subscriber.
Operating income increased by ¥42,883 million (20.7%) year on year to ¥250,086 million.
<Number of Mobile Phone Subscribers>
Net subscriber additions (new subscribers minus cancellations) for the interim period totaled 1,489,700. This net
increase was primarily the result of increased sales of smartphones such as iPhone8 and AndroidTM 9 handsets, aswell as steady sales trends of Mimamori Phone and mobile data communications devices. As a result, thecumulative number of subscribers10 at the end of the interim period stood at 26,898,400, raising SOFTBANK

5SOFTBANK CORP. CONSOLIDATED FINANCIAL REPORT
for the six-month period ended September 30, 2011

MOBILE’s cumulative subscriber share by 1.5 percentage point year on year, to 21.8%.11
Notes:
8.

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

9.

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

10. 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 interim period was 1,682,700.
11. Calculated by the Company based on Telecommunications Carriers Association statistical data.

< Number of Mobile Handsets Sold/ Shipped >The number of mobile handsets sold12 for the interim period increased by 341,000 year on year to 5,215,000,
while handsets shipped for the same period increased by 150,000 year on year to 4,888,000. These increases
were mainly the result of a strong sales and shipment trend of smartphones, as well as enhanced sales andshipments of Mimamori Phone and mobile data communications devices.
Note:
12. Handsets sold: total of new subscriptions and handset upgrades<ARPU>
ARPU for the second quarter (the three-month period ended September 30, 2011) increased ¥10 year on year to¥4,310. Out of this, the sum of the basic monthly charge and voice ARPU declined ¥230 year on year to ¥1,780,
reflecting an increase in devices that do not have voice communication functionality and revised access charges
between carriers. On the other hand, data ARPU rose ¥240 year on year to ¥2,520. This was mainly the resultof the continuing increase in the number of data-intensive smartphone subscribers.

<Churn Rate and Upgrade Rate>
The churn rate13 for the second quarter was 1.09%, which was 0.13 of a percentage point higher year on year.
This was primarily because of a contract termination for large corporate customer and an increase in the number ofprepaid mobile phone terminations.
The upgrade rate13 for the second quarter was 1.31%, which was 0.36 of a percentage point lower year on year.
This was mainly the result of a decline in upgrades to iPhone 4 which was launched in June 2010, despite anincrease in customers upgrading to Android handsets.
Note:
13. 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 subscriber14 for the second quarter declined ¥6,700 year on year to ¥30,800.
This was mainly due to an increased number of handsets sold that have a lower acquisition cost per subscriber,such as Mimamori Phone.
Note:
14. Average commission paid to sales agents per new subscription.
New subscriptions include prepaid mobile phones and communication modules.

6

SOFTBANK CORP. CONSOLIDATED FINANCIAL REPORT
for the six-month period ended September 30, 2011(b) Broadband Infrastructure(Millions of yen)Six-month Period
Ended
September 30, 2010

Six-month Period
Ended
September 30, 2011

Net sales

97,37087,261(10,108)(10.4%)

Operating income

22,70019,658(3,042)(13.4%)The segment’s net sales decreased by ¥10,108 million (10.4%) year on year to ¥87,261 million.

This was mainly

ChangeChange %<Overview of Operations>because of an increasing portion of Yahoo! BB hikari with FLET’S15 which have relatively lower ARPU, while thetotal number of broadband lines16 continued to increase.
Operating income decreased by ¥3,042 million (13.4%) year on year to ¥19,658 million.

This was mainly due toa decrease in net sales, while the operating margin remained roughly the same year on year.
The number of installed lines17 of Yahoo! BB ADSL at the end of the interim period totaled 2,873,000, for a net
decrease of 276,000 from the previous fiscal year-end. Net subscriber additions for Yahoo! BB hikari with
FLET'S for the interim period totaled 340,000, bringing the cumulative number of contracts at the end of the same
period to 1,272,000. As a result, the total number of broadband lines stood at 4,145,000.
Notes:
15. 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.
16. Total of the installed lines for Yahoo! BB ADSL and the cumulative number of contracts for Yahoo! BB hikari with FLET’S
17. 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)Six-month Period
Ended
September 30, 2010

Six-month Period
Ended
September 30, 2011

Net sales

172,887

178,075

5,188

3.0%

Operating income

13,60327,287

13,683100.6%

ChangeChange %<Overview of Operations>
The segment’s net sales increased by ¥5,188 million (3.0%) year on year to ¥178,075 million. Inter-segment
sales increased due to network provision to the Group telecommunication companies such as SOFTBANKMOBILE, 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 ¥13,683 million (100.6%) to ¥27,287 million. This was due to the increase in net
sales, combined with a decrease of operating expenses in telecommunications equipment fees mainly as a result ofrevised access charges between carriers and in sales commissions.

7

SOFTBANK CORP. CONSOLIDATED FINANCIAL REPORT
for the six-month period ended September 30, 2011(d) Internet Culture(Millions of yen)Six-month Period
Ended
September 30, 2010

Six-month Period
Ended
September 30, 2011

Net sales

137,465

141,472

4,007

2.9%

Operating income

71,64075,168

3,527

4.9%

The segment’s net sales increased by ¥4,007 million (2.9%) year on year to ¥141,472 million.

This was mainly

ChangeChange %<Overview of Operations>due to revenue growth at Yahoo Japan in listing advertising, game related services, information listing services,and Yahoo! Shopping. Display advertising revenue showed sluggish growth at the beginning of the interim
period as a result of the Great East Japan Earthquake of March 11, 2011, however it started to grow steadily once
more in July 2011.
Operating income increased by ¥3,527 million (4.9%) year on year to ¥75,168 million.

This was primarily the

result of a decrease in communications expenses due to connection efficiency improvements in the operating
system for data centers, although sales promotion expenses increased.

8

SOFTBANK CORP. CONSOLIDATED FINANCIAL REPORT
for the six-month period ended September 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

Q2( Thousands)

Net additions1

696.6

901.0

925.7

1,008.8

3,532.1

730.0

759.7

(Postpaid)

645.3

833.6

865.4

975.3

3,319.6

697.5

744.8

(Prepaid)

51.3

67.4

60.3

33.5

212.5

32.5

14.9

Market share2 (%)

45.4

53.5

55.8

40.8

48.0

42.7

40.4

22,573.2

23,474.2

24,399.925,408.7

26,138.7

26,898.4

19.9

20.3

20.8

21.3

21.6

21.8

2,162

2,712

2,605

2,763

10,242

2,550

2,665

2,051

2,687

2,736

2,542

10,016

2,493

2,395

(Thousands)

Cumulative subscribers1
Market share2(%)(Thousands)

Number ofhandsets sold3(Thousands)

Number ofhandsets shipped4(Yen per month)

ARPU5(Basic monthly charge +voice)

4,290

4,300

4,310

3,940

4,210

4,210

4,310

2,030

2,020

1,980

1,570

1,890

1,780

1,780

(Data)

2,250

2,290

2,330

2,370

2,310

2,440

2,520

37,20037,50037,80035,40036,90036,20030,800

Churn rate7

1.02

0.96

0.91

1.02

0.98

1.08

1.09

(3G postpaid)

0.99

0.92

0.86

0.98

0.94

1.03

1.02

1.18

1.67

1.43

1.33

1.40

1.28

1.31

(Yen)

Average acquisition cost
per subscriber6(% per month)(% per month)

Upgrade rate7
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.

9

SOFTBANK CORP. CONSOLIDATED FINANCIAL REPORT
for the six-month period ended September 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

Q2(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

2,873

3,710

3,650

2.56

2.43

(Yen per month)

ARPU9 10(% per month)

Churn rate11

2.54

Yahoo! BB hikari with FLET'S
Fiscal Year Ended March 31, 2011
Q1

Q2

Q3

Q4

Full Year

Fiscal Year Ending
March 31, 2012
Q1
Q2

(Thousands)

Cumulative contracts12

405

575

783

1,310

1,450

1,500

932

1,109

1,272

1,620

1,660

(Yen per month)

ARPU9

1,620

Broadband Lines
Fiscal Year Ending
March 31, 2012

Fiscal Year Ended March 31, 2011
Q1

Q2

Q3

Q4

Full Year

Q1

Q2(Thousands)

Total users13

4,014

4,032

4,074

4,082

4,118

4,145

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

Q2(Thousands)

Lines

1,668

1,667

1,662

6,600

6,570

6,610

1,671

1,669

1,679

6,650

6,570

(Yen per month)

ARPU14Note:

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

10

6,930

SOFTBANK CORP. CONSOLIDATED FINANCIAL REPORT
for the six-month period ended September 30, 2011

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

Fiscal Year Ending
March 31, 2012

Fiscal Year Ended March 31, 2011
Q1

Q2

Q3

Q4

MobileCommunications

25,98765,387116,324

143,826

Broadband
Infrastructure

3,319

3,294

5,076

Fixed-line
Telecommunications

5,112

6,362

Internet Culture

1,906

OthersConsolidated total

Full Year

Q1

Q2

351,525

84,076

98,3995,160

16,850

5,739

3,861

9,095

15,66536,236

6,320

8,281

1,908

2,783

4,114

10,713

3,349

4,609

1,216

1,559

1,148

1,340

5,265

1,710

5,338

37,54278,513

134,428

170,107420,591

101,196

120,490(b) Depreciation (excluding amortization of goodwill)（Millions of yen）

Fiscal Year Ending
March 31, 2012

Fiscal Year Ended March 31, 2011
Q1

Q2

Q3

Q4

36,636

37,63640,051

42,668

4,234

3,968

3,965

9,104

9,242

Internet Culture

2,169

OthersConsolidated total

MobileCommunications
Broadband
Infrastructure
Fixed-line
Telecommunications

Q1

Q2

156,993

45,21446,566

3,672

15,840

3,424

3,323

9,290

8,997

36,634

8,921

9,306

2,307

2,412

2,533

9,422

2,291

2,395

1,445

1,482

1,608

1,508

6,045

1,521

1,589

53,59054,63757,32959,379224,937

61,374

63,182

11

Full Year

SOFTBANK CORP. CONSOLIDATED FINANCIAL REPORT
for the six-month period ended September 30, 2011(2) Qualitative Information Regarding Consolidated Financial Position
1.

Assets, Liabilities and Equity

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

As of March 31, 2011

As of September 30, 2011

ChangeChange %Total assets

4,655,725

4,551,142(104,582)(2.2%)

Total liabilities

3,776,107

3,259,558(516,548)(13.7%)

Total equity

879,618

1,291,583

411,965

46.8%(a) Current Assets
Current assets at the end of the interim period totaled ¥1,693,055 million, for a ¥169,561 million (9.1%) decrease
from the previous fiscal year-end.

The primary components of the change were as follows:・ Notes and accounts receivable–trade decreased by ¥81,165 million from the previous fiscal year-end.

This wasmainly because of sales of installment sales receivables at SOFTBANK MOBILE.
・ Marketable securities decreased by ¥74,141 million from the previous fiscal year-end.

This was mainly due tothe transfer of shares of Yahoo! Inc. held by the Company’s U.S. subsidiary to CITIBANK, N.A., as describedon page 3 (g) Special Income.
・ Cash and deposits increased by ¥41,136 million from the previous fiscal year-end.

This was mainly because of

an issuance of preferred (restricted voting) securities by the Company’s subsidiary, despite the repayment ofborrowings such as SBM loan.
・ Other current assets decreased by ¥19,876 million from the previous fiscal year-end.

This was mainly due to a

decline in derivative assets because of the settlement of forward contracts involving shares of Yahoo! Inc. heldby the Company’s U.S. subsidiary, following the transfer of these shares to CITIBANK, N.A.

(b) Fixed Assets
Fixed assets totaled ¥2,851,330 million at the end of the interim period, for a ¥59,604 million (2.1%) increase
from the previous fiscal year-end.

The primary components of the change were as follows:・ Total property and equipment increased ¥77,756 million from the previous fiscal year-end, primarily on a

¥165,787 million increase from new acquisitions of telecommunications equipment.
・ Total intangible assets decreased ¥13,215 million from the previous fiscal year-end.

This was mainly becauseof a ¥31,287 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 ¥18,708 million as a result of new acquisitions of telecommunications equipment.

(c) Current Liabilities
Current liabilities at the end of the interim period totaled ¥1,839,811 million, for a ¥195,403 million (11.9%)
increase from the previous fiscal year-end.

The primary components of the change were as follows:・ Accounts payable-other and accrued expenses increased by ¥165,460 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

12

SOFTBANK CORP. CONSOLIDATED FINANCIAL REPORT
for the six-month period ended September 30, 2011as an amount scheduled to be paid to Vodafone International Holdings B.V. and Vodafone Overseas Finance
Limited (hereafter “the Vodafone Group”) in April 2012, as part of a transaction made with the Vodafone Groupin December 2010.
・ Short-term borrowings increased by ¥121,701 million from the previous fiscal year-end.

This was mainly due

to the transfer of SBM loan of ¥284,508 million from long-term borrowings to short-term borrowings since it isdue for settlement in October 2011. Meanwhile, during the interim period the Company repaid its loan of
US$1,135 million obtained from CITIBANK, N.A. through its U.S. subsidiary in February 2004, as describedon page 3 (g) Special Income.
・ Accounts payable-trade decreased by ¥45,081 million from the previous fiscal year-end.

This mainly reflected

the payment of accounts payable-trade by SOFTBANK MOBILE for mobile handsets purchased in preparation
for the shopping season toward the previous fiscal year-end.
・ Commercial paper decreased by ¥25,000 million from the previous fiscal year-end, as it was fully redeemed

during the interim period.
・ The current portion of corporate bonds decreased by ¥18,500 million from the previous fiscal year-end.

This

th

was mainly due to the transfer of the 28 Unsecured Straight Corporate Bond of ¥30,000 million and the 29th
Unsecured Straight Corporate Bond of ¥65,000 million from corporate bonds under long-term liabilities, whilethe 27th Unsecured Straight Corporate Bond of ¥60,000 million and the 25th Unsecured Straight Corporate Bondof ¥53,500 million were redeemed.

(d) Long-term Liabilities
Long-term liabilities totaled ¥1,419,747 million at the end of the interim period, for a ¥711,952 million (33.4%)
decrease from the previous fiscal year-end.

The primary components of the change were as follows:・ Long-term borrowings decreased by ¥503,459 million from the previous fiscal year-end.

This was mainly due

to loan repayments of ¥488,068 million made by SOFTBANK MOBILE and transfer from long-termborrowings to short-term borrowings of ¥284,508 million due for settlement in October 2011. On the other
hand, the Company’s long-term borrowings increased by ¥268,600 million mainly due to refinancing of SBM
loan.
・ Long-term liabilities–Other decreased by ¥198,692 million.

This was mainly due to the transfer of ¥200,000

million to accounts payable-other and accrued expenses for the above-mentioned payment scheduled for April
2012 as part of a transaction with the Vodafone Group, since the payment date came to be within one year.
・ Corporate bonds decreased ¥15,002 million from the previous fiscal year-end.

The transfers were made forcorporate bonds from long-term to current liabilities in the amounts of ¥30,000 million for the 28th Straight
Corporate Bond and ¥65,000 million for the 29th Straight Corporate Bond, as the redemption dates came to bewithin one year.

Moreover, some of the Company’s Convertible Bonds Due 2014 (balance at the previous

fiscal year-end ¥49,992 million; hereafter “the Convertible Bonds”) were converted into common stock of theCompany.

On the other hand, the Company issued the 36th Straight Corporate Bonds of ¥100,000 million andthe 37th Straight Corporate Bonds of ¥30,000 million.

13

SOFTBANK CORP. CONSOLIDATED FINANCIAL REPORT
for the six-month period ended September 30, 2011(e) Equity
Equity totaled ¥1,291,583 million at the end of the interim period, for a ¥411,965 million (46.8%) increase fromthe previous fiscal year-end. The equity ratio rose 4.7 percentage points from the previous fiscal year-end to
18.0%.

The primary components of the change were as follows:(Shareholders’ equity)
Shareholders’ equity increased ¥251,064 million from the previous fiscal year-end to ¥874,386 million.
・ At the end of the interim period common stock totaled ¥213,797 million and additional paid-in capital was¥237,503 million. This result includes the conversion of the Convertible Bonds into common stock of theCompany during the interim period, which increased common stock by ¥25,022 million and additional paid-in
capital by ¥24,992 million.
・ Retained earnings totaled ¥434,130 million at the end of the interim period, for a ¥211,853 million increase

from the previous fiscal year-end.

This was primarily because net income of ¥217,252 million was recorded,

while payment of dividends from retained earnings of ¥5,411 million was recorded.
・ Treasury stock totaled ¥11,045 million, for a ¥10,804 million increase from the previous fiscal year-end.

This

was mainly due to the acquisition of treasury stock in September 2011 in preparation of the exercise of stockacquisition rights.
(Valuation and translation adjustments)
・ Valuation and translation adjustments of ¥54,947 million were recorded as debit at the end of the interim period,a ¥50,878 million decrease from the previous fiscal year-end. This was mainly due to declines of ¥35,498
million in net unrealized gain on other securities and of ¥12,495 million in deferred gain on hedges from theprevious fiscal year-end.

These declines are mainly a result of settlement of forward contracts (“collartransaction”) by the Company’s U.S. subsidiary upon maturity of the loan during the interim period, as
described on page 3 (g) Special Income.

The subsidiary entered into the contract when it obtained a loan from

CITIBANK, N.A.
(Minority interests)
・ Minority interests totaled ¥471,301 million at the end of the interim period, for a ¥211,640 million increase fromthe previous fiscal year-end. This was mainly due to the issuance of preferred (restricted voting) securities
amounting ¥200,000 million by the Company’s subsidiary.

14

SOFTBANK CORP. CONSOLIDATED FINANCIAL REPORT
for the six-month period ended September 30, 2011

2.

Cash Flows

Cash flows during the interim period were as follows:
Cash and cash equivalents at the end of the interim period totaled ¥888,797 million, for a ¥41,642 million increase
from the previous fiscal year-end.
(Millions of yen)Six-month Period
Ended
September 30, 2010

Six-month Period
Ended
September 30, 2011

Cash flows from operating activities

349,335

395,044

45,708Cash flows from investing activities(129,717)(159,829)(30,112)(Reference) Free cash flow

219,617

235,214

15,596

Cash flows from financing activities(45,893)(191,568)(145,674)

Change(a) Cash Flows from Operating Activities
Net cash provided by operating activities totaled ¥395,044 million (compared with ¥349,335 million provided in
the same period of the previous fiscal year).
Income before income taxes and minority interests totaled ¥408,061 million.

The main components of positive

non-cash items are ¥124,557 million in depreciation and amortization and ¥31,315 million in amortization of
goodwill.

Components of negative non-cash items are gain on sale of marketable and investment securities, netof ¥83,514 million and dilution gain from changes in equity interest, net of ¥17,119 million.
Receivables–trade decreased (increase in cash flow) by ¥79,699 million mainly due to the sale of installment salesreceivables at SOFTBANK MOBILE.

Meanwhile, payables-trade decreased by ¥45,098 million due topayments made for mobile handsets procured at the end of the previous fiscal year at SOFTBANK MOBILE.
Income taxes paid of ¥108,196 million were recorded, for a ¥24,333 million year-on-year decrease.
(b) Cash Flows from Investing Activities
Net cash used in investing activities was ¥159,829 million (compared with ¥129,717 million used in the same
period of the previous fiscal year).
Capital expenditures, mainly at telecommunications related businesses, resulted in outlays of ¥215,800 million forpurchase of property and equipment, and intangibles. ¥22,216 million was spent for purchases of marketable andinvestment securities, while proceeds from sale of marketable and investment securities generated ¥77,446 million.
For details on proceeds from sale of marketable securities and investment securities, refer to page 28, “3.
Consolidated Financial Statements - (5) Notes (Consolidated Statements of Cash Flows) – 2. Proceeds from sale ofmarketable and investment securities and Repayment of long-term debt”.

As a result, free cash flow (the combined net cash flows from operating activities and investing activities) for theinterim period was a positive ¥235,214 million (compared with a positive ¥219,617 million in the same period of
the previous fiscal year), for a year-on-year increase of ¥15,596 million.

15

SOFTBANK CORP. CONSOLIDATED FINANCIAL REPORT
for the six-month period ended September 30, 2011(c) Cash Flows from Financing Activities
Net cash used in financing activities was ¥191,568 million (compared with ¥45,893 million used in the same
period of the previous fiscal year).
Cash was used in the amounts of ¥625,242 million for repayments of long-term debt, ¥124,122 million for
decrease in short-term borrowings, net, ¥113,500 million for redemption of bonds, ¥72,296 million for the
repayment of lease obligations, and ¥25,000 million for decrease in commercial paper, net. On the other hand,cash was provided by proceeds from long-term debt of ¥403,175 million, proceeds from issuance of preferred
securities by a subsidiary of ¥200,000 million, and proceeds from issuance of bonds of ¥129,354 million, as wellas proceeds from the sale and lease back of equipment newly acquired of ¥92,494 million.

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

Company NameSOFTBANK CORP.

Detailsth

36 Unsecured Straight Corporate Bond
(Fukuoka SoftBank HAWKS Bond)

37th Unsecured Straight Corporate Bond

Bond
redemption

SOFTBANK CORP.

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

Increase or
decrease ofcommercial
paper
Acquisition oftreasury stock

SOFTBANK CORP.

Decrease of ¥25,000 million

SOFTBANK CORP.

Acquisition of treasury stock in themarketPreferred
securities
issuances
Repayment of
securitization ofreceivables
Increase or
decrease in debt
(excluding
securitization ofreceivables

SFJ Capital Limited

Issuance of preferred securities

SOFTBANK MOBILE Corp.

Repayment of ¥40,083 million

SOFTBANK CORP.

Increase of ¥241,900 million

SOFTBANK MOBILE Corp.

Decrease of ¥488,068 million

SB Broadband Investments

Decrease of ¥93,370 million

SOFTBANK MOBILE Corp.
etc.

New capital expenditure via leases

Capitalexpenditure byfinancial lease

Summary
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

Period for acquisition: September 2 to 7,
2011 (execution base)Total cost of acquisition: ¥10,793 million
Issue date: September 22, 2011
Total amount of issue: ¥200,000 million
Dividend rate: 2.04%/year
Repayment of funds procured via
securitization of mobile handsets
installment sales receivables
Mainly increase of long-term borrowings
related to refinancing of the funds procured
by SOFTBANK MOBILE Corp. via wholebusiness securitization*1
Repayment of funds raised via the wholebusiness securitization financing scheme
Repayment of borrowings through the saleof Yahoo! Inc. shares*2
Funds newly procured during the interim
period: ¥92,494 million*1 Refer to page 30, “3. Consolidated Financial Statements – (8) Significant Subsequent Events” regarding the refinancing of SBM loan.
2 Refer to page 28, “3. Consolidated Financial Statements – (5) Notes (Consolidated Statements of Cash Flows) – 2. Proceeds from sale ofmarketable and investment securities and repayment of long-term debt”.

16SOFTBANK CORP. CONSOLIDATED FINANCIAL REPORT
for the six-month period ended September 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.

17

SOFTBANK CORP. CONSOLIDATED FINANCIAL REPORT
for the six-month period ended September 30, 2011

2. Notes on the Summary Information(1) Significant Changes in Scope of Consolidation
Changes in Scope of Consolidation of Specified Subsidiaries: (One company)
SFJ Capital Limited newly became a consolidated subsidiary due to the growth of materiality in accordance with the capital increase
through the issuance of the preferred securities on September 22, 2011.

18

SOFTBANK CORP. CONSOLIDATED FINANCIAL REPORT
for the six-month period ended September 30, 2011

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

As of
September 30, 2011

AmountAmountASSETS
Current assets:
Cash and deposits
Notes and accounts receivable - tradeMarketable securities¥861,657¥902,794

657,774

576,608

78,0993,958

Merchandise and finished products

49,88733,093

Deferred tax assets

90,90775,423

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

162,068

142,191(37,778)(41,015)

1,862,617

1,693,055

Buildings and structures

74,86774,320

Telecommunications equipment

840,839912,799

Telecommunications service lines

68,856

66,836

Land

22,882

22,908Construction in progress

55,66357,555

Other property and equipment

50,33956,784

Total property and equipment

1,113,447

1,191,204

Goodwill

839,238

807,950

Software248,872

267,581

Other intangibles

32,23331,597

1,120,345

1,107,129

340,436

350,452

109,145

95,993

123,360

122,772(15,008)
557,933
2,791,726(16,221)552,997
2,851,330

1,381

6,756

¥4,655,725¥4,551,142

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

19

SOFTBANK CORP. CONSOLIDATED FINANCIAL REPORT
for the six-month period ended September 30, 2011

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

As of
September 30, 2011

AmountAmountLIABILITIES AND EQUITYCurrent liabilities:
Accounts payable - trade
Short-term borrowings¥193,644¥148,562

410,950532,651

Commercial paper

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

128,500

110,000

561,421726,881

Income taxes payable

115,355

114,252

Current portion of lease obligations

131,305

132,736

Other current liabilities

78,23074,725

Total current liabilities

1,644,407

1,839,811

Corporate bonds

507,390492,388

Long-term debt

1,030,959

527,500

Deferred tax liabilities

26,582

25,276

Liability for retirement benefits

14,414

14,348

Allowance for point mileage

41,94733,092

Lease obligations

199,769

215,198

Other liabilities

310,636

111,943

Total long-term liabilities

2,131,699

1,419,747

Total liabilities

3,776,107

3,259,558

Common stock

188,775

213,797

Additional paid-in capital

212,510

237,503

Retained earnings

222,277

434,130

Less: Treasury stock(240)(11,045)

Total shareholders’ equity

623,321874,386

Unrealized gain (loss) on available-for-sale securities
Deferred gain (loss) on derivatives under hedge
accounting
Foreign currency translation adjustments

34,920(577)

11,224(1,271)(50,213)(53,099)

Total valuation and translation adjustments(4,068)(54,947)

703

843

Minority interests

259,661

471,301

Total equity

879,618

1,291,583¥4,655,725¥4,551,142

Long-term liabilities:

Equity:Stock acquisition rights

Total liabilities and equity

20

SOFTBANK CORP. CONSOLIDATED FINANCIAL REPORT
for the six-month period ended September 30, 2011

(2) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income
For the six-month period ended September 30, 2010 and 2011
Consolidated Statements of Income(Millions of yen)Six-month period ended
September 30, 2011
April 1, 2011 to
September 30, 2011
AmountSix-month period ended
September 30, 2010
April 1, 2010 to
September 30, 2010
AmountNet sales
Cost of sales
Gross Profit
Selling, general and administrative expenses¥1,465,021¥1,535,647

665,496

670,967

799,525

864,679

484,003491,456

Operating income

315,521373,223

Interest income
Dividend income

1,133

1,264

383

1,850

4,817

3,653

Other non-operating income
Non-operating income

6,334

6,768

Interest expense
Equity in losses of affiliated companies

54,78340,749

1,084

1,221

Refinancing related expense

2,240

13,606

Other non-operating expenses
Non-operating expenses

9,904

9,929

68,01265,506

253,843

314,485

Gain on sale of investment securities

4,915

83,527

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

1,436

17,158-2,044

Ordinary income

551-

Special income

6,903

102,730

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

2,685

8,920

745

-

10,809234

14,2409,154

246,506

408,061

95,701

101,361

Corrections
Deferred

26,450-18,50357,337

Total income taxes

140,654

158,699

105,851

249,361

29,012

32,108¥76,839¥217,252

Income before income taxes and minority interests
Income taxes:
Current

Income before minority interests
Minority interests in net income
Net income

21SOFTBANK CORP. CONSOLIDATED FINANCIAL REPORT
for the six-month period ended September 30, 2011

Consolidated Statements of Comprehensive Income(Millions of yen)Six-month period ended
September 30, 2010
April 1, 2010 to
September 30, 2010
AmountIncome before minority interests
Other comprehensive loss
Unrealized loss on available-for-sale securities
Deferred gain (loss) 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

22

Six-month period ended
September 30, 2011
April 1, 2011 to
September 30, 2011
Amount105,851

249,361(11,378)(37,136)

3,127(12,939)(9,879)(3,185)(3,359)226(21,489)(53,034)

84,362

196,326

56,295

166,373

28,067

29,952

SOFTBANK CORP. CONSOLIDATED FINANCIAL REPORT
for the six-month period ended September 30, 2011

For the three-month period ended September 30, 2010 and 2011
Consolidated Statements of Income(Millions of yen)Three-month period ended
September 30, 2010
July 1, 2010 to
September 30, 2010
AmountThree-month period ended
September 30, 2011
July 1, 2011 to
September 30, 2011
AmountNet sales
Cost of sales
Gross Profit¥764,181¥771,409

358,315

329,627

405,866

441,782

Selling, general and administrative expenses

246,948244,384

158,917

197,397

604

704

240

703

Other non-operating income
Non-operating income

2,703

2,098

3,547

3,506

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

26,993

18,341

1,301

358

2,190

13,550Operating income
Interest income
Dividend income

4,981

5,398

35,466

37,649126,998

163,254

4,797

78,594

-

2,120

1,232

1,736

Special income

6,029

82,452

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

1,253

8,723

797

-

2,634

129

Ordinary income
Gain on sale of investment securities
Unrealized appreciation on valuation of investments andgain on sale of investments at subsidiaries in the U.S.,net
Other special income

4,685

8,853

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

128,342

236,854

61,59973,407(6,870)25,091

Total income taxes

54,72998,49973,613

138,355

16,212

15,893¥57,400¥122,461

Income before minority interests
Minority interests in net income
Net income

23

SOFTBANK CORP. CONSOLIDATED FINANCIAL REPORT
for the six-month period ended September 30, 2011

Consolidated Statements of Comprehensive Income(Millions of yen)Three-month period ended
September 30, 2010
July 1, 2010 to
September 30, 2010
AmountIncome before minority interests
Other comprehensive loss
Unrealized loss on available-for-sale securities
Deferred loss 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

24

Three-month period ended
September 30, 2011
July 1, 2011 to
September 30, 2011
Amount

73,613

138,355(1,679)(26,853)(2,789)(16,343)(4,902)(951)(4,087)(1,888)(13,458)(46,035)

60,15492,31945,98278,496

14,172

13,822

SOFTBANK CORP. CONSOLIDATED FINANCIAL REPORT
for the six-month period ended September 30, 2011

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

Six-month period ended
September 30, 2011

April 1, 2010 to
September 30, 2010

April 1, 2010 to
September 30, 2011

Cash flows from operating activities:
Income before income taxes and minority interests¥246,506¥408,061

Depreciation and amortization

108,228

124,557

Amortization of goodwill

31,30131,315Equity in losses of affiliated companies

1,084

1,221

Dilution gain from changes in equity interest, net(1,323)(17,119)

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

2,685

8,920

745

(2,044)Gain on sale of marketable and investment securities, net(4,882)(83,514)

Foreign exchange gain, net

(59)

(158)

Interest and dividend income(1,516)(3,115)Interest expense

54,78340,749Adjustments for:

Changes in operating assets, and liabilities
Decrease in receivables - trade125,496

79,699

Increase (decrease) in payables - trade

14,351(45,098)(49,296)(2,770)528,105

540,703

1,530

2,644

Interest paid

(47,770)(40,107)

Income taxes paid

(132,529)(108,196)

349,335

395,044

Other, net
Sub-totalInterest and dividend received

Net cash provided by operating activities- Continued -25

SOFTBANK CORP. CONSOLIDATED FINANCIAL REPORT
for the six-month period ended September 30, 2011

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

Six-month period ended
September 30, 2011

April 1, 2010 to
September 30, 2010

April 1, 2011 to
September 30, 2011

Cash flows from investing activities:
Purchase of property and equipment, and intangibles¥ (112,323)¥(215,800)

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(32,152)(22,216)

12,48077,446

(701)

(53)

2,980

793

Net cash used in investing activities(129,717)(159,829)

15,246(124,122)-(25,000)

Proceeds from long-term debt

197,900

403,175

Repayment of long-term debt

(205,088)(625,242)

Proceeds from issuance of bonds

179,193

129,354

Redemption of bonds

Cash flows from financing activities:
Increase (decrease) in short-term borrowings, net
Decrease in commercial paper, net(54,804)(113,500)

Proceeds from issuance of shares to minority shareholders

267

226

Proceeds from issuance of preferred securities by a subsidiary
Purchase of treasury stock-

200,000(6)(10,804)

Cash dividends paid

(5,360)(5,377)

Cash dividends paid to minority shareholders
Proceeds from sale and lease back of equipment newly acquired(14,994)(16,912)

11,78492,494

Repayment of lease obligations(84,517)(72,296)

Payments for additional entrustment for debt assumption(75,000)-

Other, net(10,513)(23,563)

Net cash used in financing activities(45,893)(191,568)(1,903)(1,337)

171,820

42,308

1,919

68

(64)

(734)

(1,837)-

687,681

847,155¥859,518¥888,797

Effect of exchange rate changes
on cash and cash equivalents
Net increase in cash and cash equivalents
Increase in cash and cash equivalents due to newly consolidated
subsidiaries
Decrease in cash and cash equivalents due to exclusion ofpreviously consolidated subsidiaries
Decrease in cash and cash equivalents resulting from corporate
separation
Cash and cash equivalents, beginning of the period
Cash and cash equivalents, end of the period

26

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

(5) Notes(Consolidated Statements of Income)
1. Refinancing related expense
For the six-month period ended September 30, 2011 (From April 1 to September 30, 2011)
It is primarily ¥ 12,695 million of procurement expense related to the total amount of ¥ 550.0 billion financing (executed loanbalance of ¥ 352.5 billion as of September 30, 2011) based on the resolution of the directors’ meeting held on July 21, 2011 andcancellation expense of interest-rate swap to hedge interest rate risks along with the repayment of SBM loan.
2. Gain on sale of investment securities
For the six-month period ended September 30, 2011 (From April 1 to September 30, 2011)
The gain on sale of investment securities for the current period is primarily attributable to a ¥76,430 million gain on sale of Yahoo!
Inc. shares.
In connection with the Company’s financing of approximately $1,135 million from CITIBANK, N.A. through its U.S subsidiary
in February 2004, certain forward contracts (“collar transaction”) were entered into, which allowed the obligation to be settled atmaturity by delivering Yahoo! Inc. shares held by the Company’s subsidiary. The forward contracts were to effectively hedge
the variability of cash flows associated with the future market price of the underlying securities.
During the six-month period ended September 30, 2011, the obligation under the forward contracts was settled at maturity byeffectively delivering the shares of Yahoo! Inc. (book basis of $142 million) to CITIBANK, N.A. The cash proceeds received
by the Company’s subsidiary from delivering the shares of Yahoo! Inc. to CITIBANK, N.A. were then remitted to repay the
related obligation. “Gain on sale of investment securities” of ¥76,430 million ($993 million) was recorded as a result of settling
the forward contracts.
As of September 30, 2010, the shares of Yahoo! Inc. were reclassified to “Marketable securities” under current assets from
“Investment securities and investments in unconsolidated subsidiaries and affiliated companies” under investment and otherassets. This was to coincide with the reclassification of the related obligation under current liabilities, of which the remaining
period until maturity was less than one year. Accordingly, the gain on sale from this transaction was recorded as “Gain on saleof investment securities.”
3. Unrealized appreciation on valuation of investments and gain (loss) on sale of investments at subsidiaries in the UnitedStates of America, net
Certain subsidiaries of the Company in the United States of America qualify as investment companies under the provisions set
forth in Financial Services – Investment Companies of the FASB Accounting Standards Codification Topic 946 (ASC 946) andaccount for investment securities in accordance with ASC 946.
The net changes in the fair value of the investments are recorded as unrealized appreciation on valuation of investments and gain
(loss) on sale of investments at subsidiaries in the U.S., net and gain (loss) on sale of investments, computed based on theacquisition cost, is also included in this account. The unrealized appreciation on valuation of investments and gain (loss) on saleof investments included in unrealized appreciation on valuation of investments and gain (loss) on sale of investments at
subsidiaries in the U.S., net in the consolidated statements of income are as follows:
Six-month period ended
September 30, 2010
Unrealized appreciation on valuation of investment
at subsidiaries in the U.S.,net
Gain (loss) on sale of investments
at subsidiaries in the U.S.,net
Total

27

Six-month period ended
September 30, 2011

338

1,861

(1,083)182(745) million yen

2,044

million yen

SOFTBANK CORP. CONSOLIDATED FINANCIAL REPORT
for the six-month period ended September 30, 2011

(Consolidated Statements of Cash Flows)
1. Scope of Purchase of property and equipment, and intangibles in the consolidated statements of cash flows
For the six-month period ended September 30, 2010 (From April 1 to September 30, 2010) and for the six-month period ended
September 30, 2011 (From April 1 to September 30, 2011)“Purchase of property and equipment, and intangibles” are comprised of cash outflows from purchasing property and equipment,
and intangible assets (excluding goodwill) and long-term prepaid expenses.
2. Proceeds from sale of marketable and investment securities and Repayment of long-term debt
For the six-month period ended September 30, 2011 (From April 1 to September 30, 2011)
As described in “2. Gain on sale of investment securities under (Consolidated Statements of Income),” the shares of Yahoo! Inc.
held by the Company's U.S. subsidiary were delivered to CITIBANK, N.A. in connection with the settlement of the obligation
under the forward contracts (“collar transaction”). The cash receipts of ¥57,191 million ($743 million) equaled the fair value ofthe shares delivered and were recorded as “Proceeds from sale of marketable and investment securities”. The proceeds received of¥57,191 million were then remitted to repay the obligation and recorded as “Repayment of long-term debt.”
The difference between the obligation balance of $1,135 million at maturity and the $743 million of proceeds from delivering theshares of Yahoo! Inc. that were remitted to CITIBANK, N.A. in full settlement of the obligation was recognized as a realized gainon the forward contracts. Therefore, the balance of the obligation after deduction of the realized gain on the forward contracts,
which was equal to the fair value of Yahoo! Inc. shares, was recorded under “Repayment of long-term debt.”
3. Proceeds from issuance of preferred securities by a subsidiary
For the six-month period ended September 30, 2011 (From April 1 to September 30, 2011)
They are proceeds from the issuance of preferred securities with limited voting right (preferred securities which have the nature ofa stock prescribed in Financial Instruments and Exchange Act Article 2 (1) (ix), which is a part of securities described in Financial
Instruments and Exchange Act Article 2 (1) (xvii)) to investors through publicly offering in Japan by the Company’s consolidated
subsidiary, SFJ Capital Limited.
4. Proceeds from sale and lease back of equipment newly acquired
For the six-month period ended September 30, 2010 (From April 1 to September 30, 2010) and for the six-month period ended
September 30, 2011 (From April 1 to September 30, 2011)
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 and leaseback of equipment newly acquired.”28

SOFTBANK CORP. CONSOLIDATED FINANCIAL REPORT
for the six-month period ended September 30, 2011(6) Segment Information
1. Net sales and segment profit or loss of reportable segments for the six -month period ended September 30, 2010
(Millions of yen)
Reportable segments

Reconciliations to
Other

MobileBroadband

Fixed-line

1

Amounts in consolidated

Total

consolidated statement

Internetof income 2

Subtotalstatement of income 3

Communications

Infrastructure

Telecommunications

Culture¥935,045¥94,832¥146,838¥135,256¥1,311,973¥153,048¥1,465,021¥-¥1,465,021

4,999

2,537

26,0482,208

35,793

17,053

52,847(52,847)-

Total

940,044

97,370172,887

137,465

1,347,766

170,102

1,517,869(52,847)

1,465,021

Segment profit¥207,203¥22,700¥13,603¥71,640¥315,148¥5,913¥321,061¥(5,540)¥315,521

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 ¥(5,540) million represents elimination of intersegment
transactions and expenses of the corporate division of the Company, which totaled ¥639 million and ¥(6,179) million, respectively.
3. Segment income is adjusted with operating income in the consolidated statements of income.
2. Net sales and segment profit or loss of reportable segments for the six-month period ended September 30, 2011
(Millions of yen)
Reportable segments

Reconciliations to
Other 1

MobileBroadband

Fixed-line

Amounts in consolidated

Total

consolidated statement

Internetof income 2

Subtotalstatement of income 3

Communications

Infrastructure

Telecommunications

Culture¥1,017,191¥80,232¥141,721¥139,691¥1,378,837¥156,809¥1,535,647¥-¥1,535,647

3,745

7,029

36,354

1,781

48,91016,98065,890(65,890)-

Total

1,020,937

87,261

178,075

141,472

1,427,747

173,790

1,601,537(65,890)

1,535,647

Segment profit¥250,086¥19,658¥27,287¥75,168¥372,200¥7,514¥379,714¥(6,491)¥373,223

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 ¥(6,491) million represent elimination of intersegment
transactions and expenses of the corporate division of the Company, which totaled ¥431 million and ¥(6,923) 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 six-month period ended September 30, 2011.

29

SOFTBANK CORP. CONSOLIDATED FINANCIAL REPORT
for the six-month period ended September 30, 2011(8) Significant Subsequent Events
For the six-month period ended September 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 and the remaining amountof ¥197.5 billion on October 27, 2011. This arrangement is to refinance the ¥1,366.0 billion loan to SOFTBANK MOBILE (hereafter “SBM loan”,¥653.9 billion of which was outstanding as of the end of June 2011) procured in November 2006 by Mizuho Trust & Banking Co., Ltd, the“Tokutei Kingai Trust Trustee” under the whole business securitization 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 paid off the SBM loan
with the funds procured by the Company and its fund in hand by repaying ¥369.4 billion on July 27, 2011 and ¥284.5 billion on October 27, 2011.
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(executed on July 27, 2011)(2) Facility A2: ¥252.5 billion(executed on July 27, 2011)(3) Facility B: ¥197.5 billion(executed on October 27, 2011)

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 October 25, 1 month TIBOR 0.18%
As of October 25, 3 months TIBOR 0.33643%
Reference 2: Spread ranges from 0.75% to 1.275% based on the Company’s
issuer rating.
Spread based on the rating as of October 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 applicable30

SOFTBANK CORP. CONSOLIDATED FINANCIAL REPORT
for the six-month period ended September 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 ¥19,760 million
were recorded in the consolidated statements of income for the year ended March 31, 2011 and six-month period ended September 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 September 30, 2011
Cash and deposits

199,244

Notes and accounts receivable - trade

312,512

Buildings and structures

11,500

Telecommunications equipment

316,255

Telecommunications service lines

64

Land

10,772

Investments and other assets - other assets

10,888

Total

861,238 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 recorded ¥12.6 billion as non-operating expenses for three-month period ended September 30, 2011 and expects to record
approximately ¥11.0 billion as non-operating expenses and approximately ¥22.0 billion as special loss for three-month period ended
December 30, 2011 in the consolidated statements of income. This includes cost associated with the abovementioned syndicated loan,
the repayments of the SBM loan (cancel fee for interest hedge, etc.) and prepayment premium.

31