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

SoftBank Corp.
Consolidated Financial Report
For the nine-month period ended December 31, 2014 (IFRS)Tokyo, February 10, 2015

1.

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

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

OperatingincomeNet sales
Amount%Amount%Incomebefore incometax
Amount%

Net income

Net income
attributable toowners of theparentTotal
comprehensive
incomeAmountAmountAmount%%%Nine-month period ended¥6,431,167 41.0
December 31, 2014

¥788,045 (16.2) ¥1,117,242 37.2 ¥640,724 18.8 ¥579,446 15.9 ¥1,075,030 92.3

Nine-month period ended¥4,561,703 94.4
December 31, 2013

¥940,632-¥814,545

Basic earnings per
share (yen)Diluted earnings per
share (yen)Nine-month period ended
December 31, 2014

¥487.45¥486.86

Nine-month period ended
December 31, 2013¥419.54¥418.77-¥539,266-¥499,831-¥559,171-

Note:
Year-on-year percentage changes except for net sales for the nine-month period ended December 31, 2013 are not described due tothe retrospective adjustments in regard to the changes in accounting policies. Please refer to page 33 “Note 2. Significant
accounting policies” under “3. Condensed Interim Consolidated Financial Statements (6) Notes to Condensed Interim Consolidated
Financial Statements” for details.

(2) Financial Position

Total assets

Total equity

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

As of December 31, 2014

¥20,238,353¥3,826,718¥2,808,952

13.9

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

11.6

Note:
Retrospective adjustments in regard to the changes in accounting policies are made for each financial figure as of March, 31 2014.
Please refer to page 33 “Note 2. Significant accounting policies” under “3. Condensed Interim Consolidated Financial Statements(6) Notes to Condensed Interim Consolidated Financial Statements” for details.

2.

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

Second quarter

Third quarter

Fourth quarter

Total

(yen)

(yen)

(yen)

(yen)

(yen)

-

20.00

-

20.00

40.00

-

20.00

20.00

40.00

Note:
Revision of forecasts on the dividends: No

3. Forecasts on the Consolidated Results of Operations for the Fiscal Year Ending March 2015 (April 1, 2014 – March 31, 2015)

The Company projects net sales of ¥8 trillion and operating income of ¥900 billion for the fiscal year ending March
31, 2015. The operating income for the fiscal year ended March 31, 2014 of ¥1,077.0 billion (after retrospective
adjustments) included gain from remeasurement relating to business combination of ¥253.9 billion. The forecasted
operating income of ¥900 billion for the fiscal year ending March 31, 2015 does not include any temporary gains.
* Notes(1) Significant changes in scope of consolidation (changes in scope of consolidation of specified subsidiaries): No(2) Changes in accounting policies and accounting estimates[1] Changes in accounting policies required by IFRSs: Yes[2] Changes in accounting policies other than those in [1]: No[3] Changes in accounting estimates: Yes
Please refer to page 23 “Changes in Accounting Policies and Accounting Estimates” under “2. Notes to Summary Information”
for details.

(3) Number of shares issued (common stock)[1] Number of shares issued (including treasury stock):
As of December 31, 2014:
1,200,660,365 shares
As of March 31, 2014:
1,200,660,365 shares[2] Number of treasury stock:
As of December 31, 2014:
11,537,961 shares
As of March 31, 2014:12,204,526 shares[3] Number of average stock during nine-month period (April-December):
As of December 31, 2014:
1,188,725,107 shares
As of December 31, 2013:
1,191,374,458 shares* Implementation status of interim review proceduresThis interim consolidated financial report is not subject to interim review procedures based on the Financial Instruments andExchange Act, and the review procedures for the condensed interim consolidated financial statements were being conductedwhen this report was disclosed.
* Note to forecasts on the consolidated results of operations and other items
The Company has adopted IFRSs from the three-month period ended June 30, 2013.
The forecast figures are estimated based on the information that the Company is able to obtain at the present point andassumptions which are deemed to be reasonable. However, actual results may be different due to various factors.
On February 10, 2015, the Company will hold an earnings results briefing for the media, institutional investors, and financial
institutions. This earnings results briefing will be broadcast live on our web site in both Japanese and English at
http://www.softbank.jp/en/corp/irinfo/. The Earnings Results Data Sheet will also be posted on the Company’s web site around
4 p.m. on the same day at http://www.softbank.jp/en/corp/irinfo/presentations/.

SoftBank Corp. Consolidated Financial Report
For the nine-month period ended December 31, 2014

(Appendix)

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

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

P. 3

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

P. 3

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

P. 6(Reference 1: Principal Operational Data) ............................................................................................... P. 12(Reference 2: Definitions and Calculation Methods of Principal Operational Data) ............................... P. 14(Reference 3: Capital Expenditure and Depreciation) .............................................................................. P. 15(2) Qualitative Information Regarding Consolidated Financial Position ........................................................ P. 16
a. Assets, Liabilities and Equity ................................................................................................................... P. 16
b. Cash Flows ............................................................................................................................................... P. 21(3) Qualitative Information Regarding Forecasts on Consolidated Results of Operations ............................... P. 22
2. Notes to Summary Information ........................................................................................................................... P. 23
Changes in Accounting Policies and Accounting Estimates .............................................................................. P. 23

3. Condensed Interim Consolidated Financial Statements ...................................................................................... P. 24(1) Condensed Interim Consolidated Financial Statements of Financial Position ............................................. P. 24(2) Condensed Interim Consolidated Statements of Income and Comprehensive Income ................................ P. 26(3) Condensed Interim Consolidated Statements of Changes in Equity ............................................................. P. 30(4) Condensed Interim Consolidated Statements of Cash Flows ....................................................................... P. 32(5) Significant Doubt about Going-Concern Assumption .................................................................................. P. 33(6) Notes to Condensed Interim Consolidated Financial Statements ................................................................. P. 33

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

Definition“SoftBank Corp.”

SoftBank Corp. (stand-alone basis)

The “Company”

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

Sprint Corporation (formerly Sprint Nextel Corporation)“Brightstar”

Brightstar Corp.

“GungHo”

GungHo Online Entertainment, Inc.

“Supercell”

Supercell Oy“Alibaba”

Alibaba Group Holding Limited1

SoftBank Corp. Consolidated Financial Report
For the nine-month period ended December 31, 2014

Major Changes to Subsidiaries (April 2013 - December 2014)
Period of consolidation
Date of change

Fiscal Year Ended Mar. 31, 2014

Fiscal Year Ending Mar. 31, 2015

Three-month Three-month Three-month Three-month Three-month Three-month Three-month
Period Ended Period Ended Period Ended Period Ended Period Ended Period Ended Period Ended
June 30, 2013 Sept. 30, 2013 Dec. 31, 2013 Mar. 31, 2014 June 30, 2014 Sept. 30, 2014 Dec. 31, 2014

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Mobile Communications
GungHo Online
Entertainment, Inc.

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

Ymobile Corporation(formerly eAccess Ltd.) (Note 1)
WILLCOM, Inc.
(Consolidated on July 1)

Supercell Oy(Consolidated on October 31)

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

SprintSprint Corporation(Consolidated on July 10)

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

2SoftBank Corp. Consolidated Financial Report
For the nine-month period ended December 31, 2014

1. Qualitative Information Regarding Nine-month Period Results(1) Qualitative Information Regarding Consolidated Results of Operations
a. Consolidated Results of Operations(Millions of yen)

Nine-month Period
Ended Dec. 31, 2013

Nine-month Period
Ended Dec. 31, 2014

ChangeChange %(Note 3)

Net sales

4,561,703

6,431,167

1,869,464

41.0%

Operating income

940,632

788,045(152,587)(16.2%)(Incl.)
Gain from remeasurement
relating to businesscombination

253,886-(253,886)-

Income before income tax

814,545

1,117,242

302,69737.2%(Incl.)
Dilution gain from changes inequity interest

1,599

599,806

598,207-539,266

640,724

101,45818.8%

499,831579,446

79,61515.9%

Net income
Net income attributable toowners of the parent

Note:
3. Retrospective adjustments are made in accordance with the adoption of IFRIC 21 “Levies.” Please refer to page 33 “2.
Significant accounting policies” under “3. Condensed Interim Consolidated Financial Statements (6) Notes to Condensed
Interim Consolidated Financial Statements” for details on the retrospective adjustments.

The main factors affecting earnings for the nine-month period ended December 31, 2014 (the “period”) were as
follows:(a) Net Sales
Net sales totaled ¥6,431,167 million, for a ¥1,869,464 million (41.0%) increase from the nine-month period ended
December 31, 2013 (the “same period of the previous fiscal year”). This primarily resulted from increases in
net sales in the Sprint segment and the Mobile Communications segment.
Net sales (for customers) of the Sprint segment totaled ¥2,683,437 million, for a ¥999,193 million (59.3%)
increase compared to the same period of the previous fiscal year. The main reason for the increase was recording
the results of Sprint for the entire period, when in the same period of the previous fiscal year its results wererecorded only for the period from July 11, 2013, after its acquisition.
The Mobile Communications segment’s net sales (for customers) amounted to ¥3,063,856 million, for a¥875,626 million (40.0%) increase year on year. This was due to recording net sales of Brightstar1 and Supercell
for the entire period, when in the same period of the previous fiscal year the results of Brightstar were not recorded
and those of Supercell were recorded only after its acquisition on October 31, 2013.
1

In “1. Qualitative Information Regarding Nine-month Period Results” the earnings of Brightstar are shown excluding the earnings of SoftBank
Commerce & Service Corp. which was consolidated by Brightstar on April 1, 2014. The earnings of SoftBank Commerce & Service Corp. andthe commerce and service business of SoftBank BB Corp., from which SoftBank Commerce & Service Corp. inherited the business, have been
included in the Mobile Communications segment.

3

SoftBank Corp. Consolidated Financial Report
For the nine-month period ended December 31, 2014(b) Operating Income
Operating income totaled ¥788,045 million, for a decrease of ¥152,587 million (16.2%) year on year.

The

decline primarily reflected a deterioration of ¥22,653 million in other operating loss and ¥253,886 million in gainfrom remeasurement relating to business combination recorded in the same period of the previous fiscal year,
while income increased in the Sprint segment and the Mobile Communications segment by ¥105,330 million and¥50,556 million, respectively.
Other operating loss was ¥27,981 million, a deterioration of ¥22,653 million year on year (other operating lossof ¥5,328 million was recorded in the same period of the previous fiscal year). The deterioration was mainly
attributable to recording ¥29,509 million in severance costs associated with reduction in work force of Sprint(¥5,338 million in the same period of the previous fiscal year) and ¥18,751 million in provision for unprofitable
contract at SoftBank Telecom Corp., which were partially offset by recording ¥18,726 million in gain on partial
pension settlement at Sprint. Please refer to page 55 “11. Other operating loss” under “3. Condensed Interim
Consolidated Financial Statements (6) Notes to Condensed Interim Consolidated Financial Statements” for detailsof other operating income and loss.
In the same period of the previous fiscal year, the Company recorded a gain of ¥253,886 million recognizedfollowing remeasurement at fair value of the respective equity interests in GungHo and WILLCOM, Inc.2 that it
already held on the dates when the Company acquired control. During the period, no gain from remeasurement
relating to business combination was recorded.
(c) Finance Cost
Finance cost totaled ¥264,168 million, for a ¥77,536 million (41.5%) increase year on year. The increase wasmainly due to the impact of recording the interest expense of Sprint for the entire period.
(d) Equity in Income and Loss of Associates
Equity in income of associates was ¥12,061 million, a deterioration of ¥7,901 million year on year (equity inincome of associates of ¥19,962 million was recorded in the same period of the previous fiscal year). This was
mainly due to the decrease of ¥18,959 million in equity in income of associates related to Alibaba.
Although Alibaba has shown steady growth, the decrease in income of associates related to it reflected its net
income driven down by a loss of ¥398,716 million ($3,882 million) recognized in conjunction with the increasein the fair value of the Convertible Preference Shares issued by Alibaba from April 1, 2014 to September 18, 2014,
the day preceding the date of Alibaba’s listing on the New York Stock Exchange.
The Convertible Preference Shares were converted into common stock in conjunction with Alibaba's listing
dated September 19, 2014. Consequently dilution gain from changes in equity interest was recorded for the
portion attributable to the Company out of the loss incurred up until the listing in association with the increase in
the fair value of the Convertible Preference Shares.
(e) Dilution Gain from Changes in Equity Interest
Dilution gain from changes in equity interest was ¥599,806 million, an increase of ¥598,207 million year on year.

2

WILLCOM, Inc. was merged by eAccess Ltd. (currently Ymobile Corporation) on June 1, 2014.

4

SoftBank Corp. Consolidated Financial Report
For the nine-month period ended December 31, 2014

This was mainly attributable to recording dilution gain from changes in equity interest of ¥599,668 million inconnection with the listing of Alibaba, primarily as a result of the issuance of new shares by Alibaba and theconversion of the Convertible Preference Shares issued by Alibaba into common stock.

(f) Other Non-operating Income and Loss
Other non-operating loss was ¥18,502 million, a deterioration of ¥57,486 million year on year (other nonoperating income of ¥38,984 million was recorded in the same period of the previous fiscal year).

The primary

components were as follows:・ Impairment loss on equity method associates of ¥32,339 million was recorded (not recorded in the same
period of the previous fiscal year).
・ Gain on sales of equity method associates was ¥1,379 million, deteriorating by ¥25,322 million year on year.
・ Interest income decreased ¥17,171 million year on year to ¥2,873 million.
・ Loss on sales of securities was ¥2,143 million (gain on sales of securities of ¥11,565 million was recordedin the same period of the previous fiscal year).
・ Derivative loss was ¥1,195 million, improving by ¥13,862 million year on year.
Please refer to page 56 “14. Other non-operating income and loss” under “3. Condensed Interim Consolidated
Financial Statements (6) Notes to Condensed Interim Consolidated Financial Statements” for details.

(g) Income before Income Tax
As a result of (b) to (f), income before income tax was ¥1,117,242 million, an increase of ¥302,697 million(37.2 %) year on year.

(h) Income Taxes
Provisions for current income taxes were ¥476,518 million, an increase of ¥201,239 million (73.1%) year on year.
Tax effects were recognized in principle for equity in income of associates and dilution gain from changes inequity interest related to associates such as Alibaba.

(i) Net Income
As a result of (g) to (h), net income totaled ¥640,724 million, for a ¥101,458 million (18.8%) year-on-year increase.

(j) Net Income Attributable to Owners of the Parent
After deducting net income and loss attributable to non-controlling interests in subsidiaries such as Yahoo Japan
Corporation, Sprint, GungHo, and Supercell from (i), net income attributable to owners of the parent amounted
to ¥579,446 million, for a ¥79,615 million (15.9%) increase year on year.

(k) Comprehensive Income
Comprehensive income totaled ¥1,075,030 million, for a ¥515,859 million (92.3%) year-on-year increase. Of
this, comprehensive income attributable to owners of the parent was ¥954,777 million, for a ¥460,365 million(93.1%) year-on-year increase.

5SoftBank Corp. Consolidated Financial Report
For the nine-month period ended December 31, 2014b. Results by Segment
The Company’s reportable segments are components of business activities for which decisions on resource
allocation and assessment of performance are made.

The Company has four reportable segments: “Mobile

Communications,” “Sprint,” “Fixed-line Telecommunications,” and “Internet.”

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

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

MobileCommunications

SprintReportable
Segments

Main Businesses

Core Companies

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

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

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

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

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

・Internet advertising・e-commerce business・Membership services

Yahoo Japan Corporation

Internet
Others・Fukuoka SoftBank HAWKS related businesses

Fukuoka SoftBank HAWKS Corp.

Note:
4. Income of reportable segments is based on income from operating income, excluding “Gain from remeasurement relating tobusiness combination” and “Other operating income (loss),” as follows:
Segment income = (net sales – cost of sales – selling, general and administrative expenses) in each segment

6SoftBank Corp. Consolidated Financial Report
For the nine-month period ended December 31, 2014(a) Mobile Communications Segment(Millions of yen)

Nine-month Period
Ended Dec. 31, 2013

Nine-month Period
Ended Dec. 31, 2014

2,203,828

3,087,458

883,63040.1%

521,227

571,783

50,556

9.7%

Net sales
Segment income

ChangeChange %< Overview of Operations >The segment’s net sales increased by ¥883,630 million (40.1%) year on year to ¥3,087,458 million.

The increase

was mainly due to recording the results of Brightstar and Supercell for the entire period and an increase in net
sales of SoftBank Mobile Corp.
Net sales of Brightstar amounted to ¥656,584 million. In the same period of the previous fiscal year net salesof Brightstar were not recorded, while in the period they were recorded for the entire period.

Net sales ofSupercell were also recorded for the entire period, while in the same period of the previous fiscal year they wererecorded only after its acquisition on October 31, 2013.
At SoftBank Mobile Corp., net sales increased by ¥59,212 million to ¥1,722,696 million on higher product sales,
as well as increased service revenue along with growth in the cumulative number of subscribers. The increase inproduct sales was primarily a result of a higher average price per mobile device due to changes in the mix of devices
sold, despite a slight decrease in the number of handsets shipped.3
Segment income increased by ¥50,556 million (9.7%) year on year to ¥571,783 million. This was mainly due
to recording the income of Supercell for the entire period and an increase in income at SoftBank Mobile Corp. The
increase in income at SoftBank Mobile Corp. was mainly attributable to the aforementioned increase in its net sales
and decrease in sales commissions, which outweighed increases in depreciation and communication network charges.
< Overview of Business Operations >(Principal operational data of SoftBank Mobile Corp. is shown below.)・Number of Subscribers
The cumulative number of subscribers at SoftBank Mobile Corp. as of December 31, 2014 (the “end of the third
quarter”) stood at 37,401,000.

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

SoftBank Mobile Corp. totaled 1,477,000. This was primarily the result of solid trends in subscriber numbers,
especially for smartphones and tablets, and communication modules.

・ARPU
ARPU 4 at SoftBank Mobile Corp. for the three-month period ended December 31, 2014 (the “third quarter”)
decreased by ¥240 year on year to ¥4,250. This decline in ARPU primarily reflected an increase in low-ARPU

3

Handsets shipped: the number of handsets shipped (sold) to handset dealers. Includes the number of handsets sold to customers at storesoperated by SoftBank Mobile Corp. and the SoftBank ONLINE SHOP.
4
For definitions and calculation methods of ARPU and churn and upgrade rates at SoftBank Mobile Corp., see page 14 “(Reference 2: Definitions
and Calculation Methods of Principal Operational Data) (a) SoftBank Mobile Corp.”

7

SoftBank Corp. Consolidated Financial Report
For the nine-month period ended December 31, 2014devices. Meanwhile, ARPU was pushed up mainly by growth in the number of LTE subscriptions, which haverelatively higher data communication charges compared to 3G subscriptions.

・Number of Units Sold
The number of units sold5 at SoftBank Mobile Corp. in the period increased by 7,000 year on year to 9,893,000.
・Churn Rate and Upgrade Rate
The churn rate4 at SoftBank Mobile Corp. for the third quarter was 1.34%, up 0.06 of a percentage point year on
year. The upgrade rate4 was 1.87%, up 0.23 of a percentage point year on year.

This was mainly due to theprogress in iPhone upgrades.

(b) Sprint Segment(Millions of yen)

Net sales
Segment income

Nine-month Period
Ended Dec. 31, 2013

Nine-month Period
Ended Dec. 31, 2014

ChangeChange %1,684,439

2,809,857

1,125,418

66.8%(50,502)54,828105,330-(5,338)(29,509)(24,171)--

18,726

18,726-(Reference: other operating income (loss) related to Sprint)
Severance costs associatedwith reduction in workforce of Sprint
Gain on partial pension
settlement

Note:
5. The Sprint segment includes the results of Sprint since July 11, 2013.

< Overview of Operations >The segment’s net sales increased by ¥1,125,418 million (66.8%) year on year to ¥2,809,857 million. The main
factor behind the increase was that in the same period of the previous fiscal year Sprint’s results were reflected
only from July 11, 2013, while in the period they were reflected for the entire period.
Segment income improved by ¥105,330 million year on year to ¥54,828 million, from a segment loss of ¥50,502
million in the same period of the previous fiscal year. The principal cause of this improvement was a decreasein depreciation as a result of some of the legacy assets becoming fully depreciated as of December 31, 2013.
Other factors which contributed to the improvement in income included a decrease in network and roaming
expenses primarily resulting from the network enhancement and improvement, and a decrease in subsidy due toan increased adoption of the installment billing program for mobile devices from the conventional subsidized
model, where Sprint pays subsidies to bear a part of the cost of devices for customers.
Severance costs associated with reduction in work force and gain on partial pension settlement at Sprint were
5

Units sold: the total number of new subscriptions and handset upgrades.

8SoftBank Corp. Consolidated Financial Report
For the nine-month period ended December 31, 2014

recorded as other operating income and loss on the Company’s condensed interim consolidated statements ofincome and did not affect segment income.

Please refer to page 55 “11. Other operating loss” under “3.

Condensed Interim Consolidated Financial Statements (6) Notes to Condensed Interim Consolidated Financial
Statements” for details.
Although Sprint recorded $2.13 billion of impairment losses in the third quarter, the Company did not recognize
an impairment loss related to Sprint, primarily due to differences in adopted GAAP.

Please refer to theCompany’s press release “Impairment Losses Related to Sprint (under US GAAP) and Reasons for Not
Recognizing an Impairment Loss Related to Sprint in the Consolidated Financial Statements of SoftBank (under
IFRSs),” dated February 5, 2015, for details.
< Overview of Business Operations >・Number of Subscribers
The Sprint platform6 had 1,337,000 net subscriber additions for the period. This primarily reflected a 1,857,000
net addition in wholesale & affiliate, mainly due to growth of communication modules for automobiles, despite a423,000 net loss in postpaid mostly caused by a net loss of mobile phones. As a result, the cumulative number of
the Sprint platform subscribers stood at 54,888,000 at the end of the third quarter.

・ABPU
Starting from the third quarter, Sprint discloses ABPU7 (Average Billings Per User), which is the sum of ARPU7
and monthly-average equipment billings,8 as its key performance indicator in addition to ARPU.
Sprint platform postpaid ABPU for the third quarter was $62.16, for a $2.08 year-on-year decrease.

This wasmainly due to an increased number of subscriptions to lower price plans offered in conjunction with device
financing programs such as installment sales and leases, as well as tablet subscriptions, whose monthly service
charge is lower than mobile phones.

On the other hand, equipment billings increased due to the increased

adoption of the installment billing program for mobile devices.

・Churn Rate
The Sprint platform postpaid churn rate7 for the third quarter was 2.30%, up 0.23 of a percentage point year on
year. The rate was mainly pushed up by the impact of competition for customers in the third quarter, as well as
increased involuntary churn due to unpaid subscriptions.

6

Sprint-operated CDMA and LTE networks.
For definitions and calculation methods of ABPU/ARPU and churn rate of the Sprint platform, see page 14 “(Reference 2: Definitions andCalculation Methods of Principal Operational Data) (b) Sprint Platform.”
8
Equipment billings: the sum of installment billings under the installment billing program and lease fees under the leasing program.
7

9

SoftBank Corp. Consolidated Financial Report
For the nine-month period ended December 31, 2014(c) Fixed-line Telecommunications Segment(Millions of yen)

Nine-month Period
Ended Dec. 31,
2013

Nine-month Period
Ended Dec. 31,
2014

Net sales

407,425

400,017(7,408)(1.8%)

Segment income

89,36881,321(8,047)(9.0%)(18,751)-

ChangeChange %(Reference: other operating loss related to SoftBank Telecom Corp.)
Provision forunprofitable contract-(18,751)< Overview of Operations >The segment’s net sales decreased by ¥7,408 million (1.8%) year on year to ¥400,017 million. This was mainly
due to a decline in ADSL service revenue at Ymobile Corporation and a decrease in net sales at SoftBank Telecom
Corp.

The revenue decrease at SoftBank Telecom Corp. principally reflected temporary revenue frominterconnection charges recorded in the same period of the previous fiscal year.
Segment income decreased by ¥8,047 million (9.0%) year on year to ¥81,321 million. This was mainly due
to a decrease in net sales, as well as an increase in outsourcing expenses and communication network charges at
SoftBank Telecom Corp. relating to the network for communications services for a corporate customer.
Provision for unprofitable contract related to communications services at SoftBank Telecom Corp. wasrecorded as other operating loss on the Company’s condensed interim consolidated statements of income and did
not affect segment income.

Please refer to page 55 “11. Other operating loss” under “3. Condensed Interim

Consolidated Financial Statements (6) Notes to Condensed Interim Consolidated Financial Statements” for details.

(d) Internet Segment(Millions of yen)

Nine-month Period
Ended Dec. 31,
2013

Nine-month Period
Ended Dec. 31,
2014

Net sales

297,976

303,712

5,736

1.9%

Segment income

143,478

136,459(7,019)(4.9%)

ChangeChange %<Overview of Operations>
The segment’s net sales increased by ¥5,736 million (1.9%) year on year to ¥303,712 million. This increase wasa result of revenue growth in the advertising business at Yahoo Japan Corporation, especially from display
advertising,9 which was partially offset by a revenue decrease in the e-commerce business relating to its new
9

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

10SoftBank Corp. Consolidated Financial Report
For the nine-month period ended December 31, 2014

strategy, which includes eliminating monthly store tenant and other fees.
Segment income decreased by ¥7,019 million (4.9%) year on year to ¥136,459 million. This decrease wasmainly caused by Yahoo Japan Corporation as a result of its decreased sales in the e-commerce business, as wellas increased depreciation accompanying its continued capital expenditures related to the advertising business, bigdata and security enhancement, and increased personnel expenses.

11SoftBank Corp. Consolidated Financial Report
For the nine-month period ended December 31, 2014

(Reference 1: Principal Operational Data)(a) Mobile Communications Segment
Fiscal Year Ended Mar. 31, 2014

Fiscal Year Ending Mar. 31, 2015

Fiscal Year
Three-month Three-month Three-monthThree-month Three-month Three-month Three-month
Ended
Period Ended Period Ended Period Ended
Period Ended Period Ended Period Ended Period Ended
June 30, 2013 Sept. 30, 2013 Dec. 31, 2013 Mar. 31, 2014 Mar. 31, 2014 June 30, 2014 Sept. 30, 2014 Dec. 31, 2014

Full Year

Q1

Q2

Q3

34,76035,92536,48237,04737,401

9,725

9,899

10,011

10,002

10,066

10,065

5,199

5,310

5,403

5,546

5,516

5,470

5,305

Net additions10

810

778

692

1,165

3,445

557

565

355

Postpaid

818

790

716

1,202

3,526

591

594

384

Prepaid

-8

-12

-24

-36

-81

-34

-29

-29

4,460

4,520

4,490

4,340

4,450

4,280

4,260

4,250

2,575

2,734

3,347

3,377

12,033

1,769

2,978

3,832

3,023

3,150

3,713

4,289

14,175

2,533

3,428

3,932

1,790

1,904

2,015

2,921

8,629

1,761

1,968

1,847

1,233

1,246

1,698

1,368

5,546

772

1,460

2,085

Churn rate13

0.99

1.12

1.28

1.66

1.27

1.11

1.27

1.34

Postpaid

0.94

1.06

1.24

1.63

1.22

1.07

1.23

1.30

1.25

1.23

1.64

1.30

1.36

0.71

1.32

1.87

Q1

Q2

Q3

SoftBank Mobile
Corp.1033,29034,068

YmobileCorporation11,12

9,542

Q4

Cumulative
Subscribers(Thousands)(Incl.) PHS(Thousands)(¥ / month)

SoftBank Mobile Corp.

ARPU13,14(Thousands)

Handsets shipped15(Thousands)

Units sold16
New
subscriptions
Handsetupgrades(% / month)(% / month)

Upgrade rate13

10

Includes the number of prepaid mobile phones and communication module service subscribers. The communication module subscribers’ net
additions for the period were 542,000 and the cumulative number at the end of the third quarter totaled 4,376,000.
11
eAccess Ltd. changed its company name to Ymobile Corporation on July 1, 2014. Preceding this, eAccess Ltd. merged with WILLCOM, Inc.
on June 1, 2014.
12
Includes the number of prepaid mobile phones and communication module service subscribers. The number of subscribers for the services
provided by Ymobile Corporation under the “Y!mobile” (formerly “EMOBILE” or “WILLCOM”) brand utilizing the communication network of
SoftBank Mobile Corp. is not included.
13
For definitions and calculation methods of ARPU and churn and upgrade rates at SoftBank Mobile Corp., see page 14 “(Reference 2: Definitions
and Calculation Methods of Principal Operational Data) (a) SoftBank Mobile Corp.”
14
ARPU in the fourth quarter of every fiscal year includes impact from revision of interconnection charges.
15
Handsets shipped: the number of handsets shipped (sold) to dealers. Includes the number of handsets sold to customers at stores operated by
SoftBank Mobile Corp. and the SoftBank ONLINE SHOP.
16
Units sold: the total number of new subscriptions and handset upgrades.

12SoftBank Corp. Consolidated Financial Report
For the nine-month period ended December 31, 2014(b) Sprint Segment
Fiscal Year Ended Mar. 31, 2014

Fiscal Year Ending Mar. 31, 2015

Three-month
Period Ended
June 30, 2013

Three-month
Period Ended
Sept. 30, 2013

Three-month
Period Ended
Dec. 31, 2013

Three-month
Period Ended
Mar. 31, 2014

Fiscal Year
Ended
Mar. 31, 2014

Three-month
Period Ended
June 30, 2014

Three-month
Period Ended
Sept. 30, 2014

Three-month
Period Ended
Dec. 31, 2014

Q1

Q2

Q3

Q4

Full Year

Q1

Q2

Q3

Sprint total

53,58854,87755,35454,88754,55355,03755,929Sprint platform

53,37653,25253,93453,55153,331

53,92154,888Postpaid

30,45130,09130,14929,91829,737

29,46529,495

15,215

15,29915,621

15,257

14,715

14,75015,160

7,710

7,862

8,164

8,376

8,879

9,706

10,233

212

1,625

1,420

1,336

1,222

1,116

1,041

Net additions17

-520

-95

682

-383

-220

590

967

Postpaid

194

-360

58

-231

-181

-272

30

Prepaid
Wholesale &affiliate

-486

84

322

-364

-542

35

410

-228

181

302

212

503

827

527

-

-

64.24

64.13

63.59

62.75

62.16

Postpaid

64.20

64.28

64.11

63.52

62.07

60.58

58.90

Prepaid

26.96

25.33

26.78

26.45

27.38

27.19

27.12

Postpaid

1.83

1.99

2.07

2.11

2.05

2.18

2.30

Prepaid

5.22

3.57

3.01

4.33

4.44

3.76

3.94

Cumulative Subscribers17(Thousands)

Prepaid
Wholesale &affiliate
U.S. Cellular &Clearwire18(Thousands)

Sprint Platform($ / month)
19

ABPU
Postpaid($ / month)

ARPU19(% / month)

Churn rate19

17

Includes the number of communication module service subscribers.
Sprint acquired 411,000 subscribers (352,000 postpaid subscribers and 59,000 prepaid subscribers) through the acquisition of assets from U.S.
Cellular Corporation (“U.S. Cellular”) following its acquisition of U.S. Cellular when the transaction closed on May 17, 2013. Sprint alsoacquired 1,602,000 subscribers (788,000 postpaid subscribers, 721,000 prepaid subscribers, and 93,000 wholesale subscribers) following its
acquisition of Clearwire Corporation (“Clearwire”) when the transaction closed on July 9, 2013, and transferred 29,000 Sprint wholesale
subscribers relating to a Clearwire MVNO arrangement that were originally recognized on the Sprint platform to this category.
19
For definitions and calculation methods of ABPU/ARPU and churn rate of the Sprint platform, see page 14 “(Reference 2: Definitions andCalculation Methods of Principal Operational Data) (b) Sprint Platform.”
18

13

SoftBank Corp. Consolidated Financial Report
For the nine-month period ended December 31, 2014

(Reference 2: Definitions and Calculation Methods of Principal Operational Data)(a) SoftBank Mobile Corp.
i. ARPU
ARPU: Average Revenue Per User per month (rounded to the nearest ¥10)
ARPU = (data-related revenue + basic monthly charge, voice-related revenues, etc.) / number of active subscribers
Number of active subscribers: the total of the monthly numbers of active subscribers for the relevant period((subscribers at the beginning of the month + subscribers at the end of the month) / 2)
Data-related revenue: packet communication and flat-rate charges, basic monthly Internet connection charges,
content-related revenues, etc.
Basic monthly charge and voice-related revenues: basic monthly usage charges, voice call charges, revenues from incoming
calls, device warrantee services, advertising, etc.
Revenues from incoming calls: interconnection charges received from other operators for voice calls from their customers on
their network to SoftBank Mobile phones as a charge for the services provided in the
SoftBank Mobile Corp. service area.
(Calculation of ARPU excludes revenues and subscribers related to communication modules.)ii. Churn rate
Churn rate = number of churn / number of active subscribers (rounded to the nearest 0.01%)
Number of churn: the total number of subscribers that churned during the relevant period
Number of active subscribers: the total of the monthly numbers of active subscribers for the relevant period((subscribers at the beginning of the month + subscribers at the end of the month) / 2)iii. Upgrade rate
Upgrade rate = number of upgrades / number of active subscribers (rounded to the nearest 0.01%)
Number of upgrades: the total number of upgrades during the relevant period
Number of active subscribers: the total of the monthly numbers of active subscribers for the relevant period((subscribers at the beginning of the month + subscribers at the end of the month) / 2)(b) Sprint Platform
i. ABPU/ARPUABPU: Average Billings Per User per month (rounded to the nearest $.01)
ABPU = (service revenue + equipment billings) / number of active subscribers
Equipment billings: the sum of installment billings under the installment billing program and lease fees under the leasing
program
ARPU: Average Revenue Per User per month (rounded to the nearest $.01)
ARPU = service revenue / number of active subscribers
Number of active subscribers: the total of the monthly numbers of active subscribers for the relevant period((subscribers at the beginning of the month + subscribers at the end of the month) / 2)

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

14

SoftBank Corp. Consolidated Financial Report
For the nine-month period ended December 31, 2014

(Reference 3: Capital Expenditure and Depreciation)(a) Capital Expenditure (acceptance basis)(Millions of yen)
Fiscal Year Ended Mar. 31, 2014

MobileCommunications
Segment

Fiscal Year Ending Mar. 31, 2015

Three-month
Period Ended
June 30, 2013

Three-month
Period Ended
Sept. 30, 2013

Three-month
Period Ended
Dec. 31, 2013

Three-month
Period Ended
Mar. 31, 2014

Fiscal Year
Ended
Mar. 31, 2014

Three-month
Period Ended
June 30, 2014

Three-month
Period Ended
Sept. 30, 2014

Three-month
Period Ended
Dec. 31, 2014

Q1

Q2

Q3

Q4

Full Year

Q1

Q2

Q3

163,581

164,563

170,469

180,347

678,960

123,186

121,794

129,673

163,574

208,733

91,969464,276

148,793

162,025

213,765

SprintSegment
Fixed-line
Telecommunications Segment

9,903

16,74313,091

20,73160,4689,946

14,44715,151

Internet Segment

4,393

2,746

9,194

9,706

26,039

8,534

5,035

9,418

Others

2,835

4,694

3,082

4,896

15,507

5,552

4,446

8,983

180,712352,320

404,569

307,649

1,245,250

296,011

307,747

376,990

Consolidated total(b) Depreciation and Amortization(Millions of yen)
Fiscal Year Ended Mar. 31, 2014

MobileCommunications
Segment

Fiscal Year Ending Mar. 31, 2015

Three-month
Period Ended
June 30, 2013

Three-month
Period Ended
Sept. 30, 2013

Three-month
Period Ended
Dec. 31, 2013

Three-month
Period Ended
Mar. 31, 2014

Fiscal Year
Ended
Mar. 31, 2014

Three-month
Period Ended
June 30, 2014

Three-month
Period Ended
Sept. 30, 2014

Three-month
Period Ended
Dec. 31, 2014

Q1

Q2

Q3

Q4

Full Year

Q1

Q2

Q3

83,367

92,228100,205

119, 184

394,984

106,600

106,979

110,198

134,191

152,411

131,859

418,461

128,621

132,763

145,354

SprintSegment
Fixed-line
Telecommunications Segment

14,80914,91815,402

16,94862,077

13,93914,98814,931

Internet Segment

3,221

3,218

3,700

5,230

15,369

3,543

4,153

4,396

Others

1,902

2,085

2,329

2,697

9,013

2,298

2,299

2,596

103,299

246,640

274,047

275,918

899,904

255,001

261,182

277,475

Consolidated total

Note:
6. The Sprint segment includes the results of Sprint since July 11, 2013.

15

SoftBank Corp. Consolidated Financial Report
For the nine-month period ended December 31, 2014

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

As ofMarch 31, 2014 (Note 7)

As ofDecember 31, 2014

Total assets

16,690,127

20,238,353

3,548,226

21.3%

Total liabilities

13,859,745

16,411,635

2,551,890

18.4%

Total equity

2,830,382

3,826,718

996,33635.2%

102.92120.55

17.63

17.1%

ChangeChange %(Reference)
Exchange rate
USD/ JPY

Note:
7. Retrospective adjustments are made in accordance with the adoption of IFRIC 21 “Levies.” Please refer to page 33 “2.
Significant accounting policies” under “3. Condensed Interim Consolidated Financial Statements (6) Notes to Condensed
Interim Consolidated Financial Statements” for details on the retrospective adjustments.

(a) Current Assets(Millions of yen)

As ofMarch 31, 2014

Item
Cash and cash equivalents

As ofDecember 31, 2014

Change1,963,490

2,448,707

485,217

511,562

416,536(95,026)

1,669,545

1,890,597

221,052

370,564452,388

81,824

Other financial assets

164,727

234,90970,182Inventories

251,677

416,509

164,832

Other current assets

281,535

270,038(11,497)

Total current assets

4,330,974

5,260,760

929,786

SprintTrade and other receivables
SprintCurrent assets totaled ¥5,260,760 million, for a ¥929,786 million (21.5%) increase from March 31, 2014 (the“previous fiscal year-end”). The primary components of the change were as follows:
・ Cash and cash equivalents increased by ¥485,217 million from the previous fiscal year-end.
・ Trade and other receivables was incremented by ¥221,052 million from the previous fiscal year-end. Thiswas mainly due to an increase in installment receivables at Sprint resulting from the increased adoption of
the installment billing program for mobile devices and an increase of accounts receivables at Brightstar.
・ Inventories increased by ¥164,832 million from the previous fiscal year-end. This was primarily due toan increase in inventories of mobile devices at Sprint led by seasonal factors.

16

SoftBank Corp. Consolidated Financial Report
For the nine-month period ended December 31, 2014(b) Non-current Assets(Millions of yen)

As ofMarch 31, 2014

Item

Property, plant and equipment

As ofDecember 31, 2014

Change3,586,327

4,189,594

603,267

1,472,679

2,040,335

567,656

1,539,607

1,635,685

96,078286,258

333,078

46,8206,177,701

6,978,064

800,3635,303,382

6,056,492

753,110

3,709,526

4,328,634

619,1083,709,526

4,328,634

619,108

677,494

628,375(49,119)579,885

540,634(39,251)

675,450

790,040

114,590663,150

775,343

112,193

Software647,386

740,31192,925

Game titles

166,522

132,302(34,220)

Others301,323

358,402

57,079Investments accounted for using
the equity method

304,318

1,142,757

838,439

Other financial assets

401,693674,609

272,916

Deferred tax assets

182,246

169,030(13,216)

Other non-current assets

167,261

187,854

20,593

Total non-current assets

12,359,153

14,977,593

2,618,440

SprintGoodwill
SprintIntangible assets
Sprint
FCC licenses20
SprintCustomer relationships
SprintTrademarks
SprintNon-current assets totaled ¥14,977,593 million, for a ¥2,618,440 million (21.2%) increase from the previous
fiscal year-end.

The primary components of the change were as follows:・ Investments accounted for using the equity method increased by ¥838,439 million from the previous fiscal yearend. This was mainly due to the recording of dilution gain from changes in equity interest related to Alibaba.
・ Intangible assets increased by ¥800,363 million from the previous fiscal year-end.

The increase wascaused mainly by an increase in FCC licenses (non-amortized assets from an accounting perspective) of¥619,108 million and an increase in trademarks of ¥114,590 million, primarily due to the impact of the yenat the end of the third quarter depreciating against the U.S. dollar from the previous fiscal year-end. On
the other hand, customer relationships and game titles declined by ¥49,119 million and ¥34,220 million,
respectively both mainly due to regular amortization.
20

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

17SoftBank Corp. Consolidated Financial Report
For the nine-month period ended December 31, 2014

・ Property, plant and equipment rose by ¥603,267 million from the previous fiscal year-end. This mainlyreflected an increase of ¥567,656 million at Sprint, mostly due to its acquisitions of telecommunications
equipment to enhance its network, as well as the impact of the yen at the end of the third quarter
depreciating against the U.S. dollar from the previous fiscal year-end.
(c) Current Liabilities(Millions of yen)

As ofMarch 31, 2014

Item
Interest-bearing debt

As ofDecember 31, 2014

Change1,147,899

1,551,293

403,394

101,977

156,946

54,969

Short-term borrowings

270,529

234,049(36,480)

Current portion of
long-term borrowings

393,566

484,169

90,603

139,300

168,949

29,64964,433

113,863

49,430Current portion oflease obligations

264,295

384,104

119,809

Current portion ofpreferred securities-

200,000

200,000

80,20980,022(187)

1,705,956

2,023,689

317,733

529,465

897,014367,549

Other financial liabilities

5,847

20,697

14,850

Income taxes payables

246,013

135,307(110,706)

Provisions

93,11566,280(26,835)

Other current liabilities

568,366

652,079

83,713

Total current liabilities

3,767,196

4,449,345

682,149

SprintCurrent portion of
corporate bonds
SprintOthersTrade and other payables
SprintCurrent liabilities totaled ¥4,449,345 million, for a ¥682,149 million (18.1%) increase from the previous fiscal
year-end. The primary components of the change were as follows:・ Interest-bearing debt increased by ¥403,394 million from the previous fiscal year-end. This was mostly
due to the reclassification from non-current liabilities of ¥200,000 million of the preferred (restricted
voting) securities of the subsidiary SFJ Capital Limited issued in September 2011, because it will become
possible for the holders to exercise their put option to redeem the preferred securities in cash in May 2015or later. The current portion of lease obligations also increased by ¥119,809 million, mainly due to thereclassification from non-current liabilities of the lease obligation relating to the FUKUOKA YAHUOKU!

18

SoftBank Corp. Consolidated Financial Report
For the nine-month period ended December 31, 2014

DOME, as the lease contract is scheduled to end in July 2015.
・ Trade and other payables increased by ¥317,733 million from the previous fiscal year-end. This was
mainly attributable to an increase in accounts payable – trade of ¥286,503 million at Sprint, primarily due
to an increased purchase of mobile devices and a revision of the payment terms with certain network
equipment and mobile device suppliers.

(d) Non-current Liabilities(Millions of yen)

As ofMarch 31, 2014

Item
Interest-bearing debt

As ofDecember 31, 2014

Change8,022,154

9,319,490

1,297,336

3,257,182

3,740,774

483,592

2,243,855

2,181,088(62,767)

4,743,073

6,361,238

1,618,165

3,164,192

3,655,945

491,753

Lease obligations

730,915

685,023(45,892)

Preferred securities

199,156-(199,156)

Others105,155

92,141(13,014)

Other financial liabilities

41,151

26,031(15,120)

Defined benefit liabilities

77,041

114,599

37,558Provisions

136,920140,286

3,366

1,533,021

2,018,399

485,378

1,448,264

1,722,773

274,509

Other non-current liabilities

282,262

343,485

61,223

Total non-current liabilities

10,092,549

11,962,290

1,869,741

SprintLong-term borrowings
Corporate bonds
SprintDeferred tax liabilities
SprintNon-current liabilities totaled ¥11,962,290 million, for a ¥1,869,741 million (18.5%) increase from theprevious fiscal year-end. The primary components of the change were as follows:・ Interest-bearing debt increased by ¥1,297,336 million from the previous fiscal year-end. The increase
mainly reflected SoftBank Corp.’s issuance of ¥700,000 million in unsecured straight corporate bonds and¥400,000 million in unsecured subordinated corporate bonds, as well as an increase in Sprint’s corporate
bonds by ¥491,753 million primarily due to the yen at the end of the third quarter depreciating against the
U.S. dollar from the previous fiscal year-end.

On the other hand, the preferred (restricted voting)securities of SFJ Capital Limited were reclassified into current liabilities.
・ Deferred tax liabilities increased by ¥485,378 million from the previous fiscal year-end. This was mainly
due to an increase of ¥274,509 million at Sprint, primarily due to the yen at the end of the third quarter

19

SoftBank Corp. Consolidated Financial Report
For the nine-month period ended December 31, 2014

depreciating against the U.S. dollar from the previous fiscal year-end.

In addition, a tax effect wasrecognized for the difference between the carrying amount of Alibaba on a consolidated basis, which
increased due to the recording of dilution gain from changes in equity interest, and its carrying amount on
a tax basis.

(e) Equity(Millions of yen)

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

As ofDecember 31, 2014

Change1,930,441

2,808,952

878,511

899,941

1,017,766

117,825

2,830,382

3,826,718

996,336

Equity totaled ¥3,826,718 million, for a ¥996,336 million (35.2%) increase from the previous fiscal year-end.
Of this amount, equity attributable to owners of the parent and non-controlling interests increased by ¥878,511
million (45.5%) and ¥117,825 million (13.1%), respectively.

The ratio of equity attributable to owners of theparent to total assets increased by 2.3 percentage points from the previous fiscal year-end to 13.9%.
(Equity Attributable to Owners of the Parent)(Millions of yen)

Item

As of
March 31, 2014

As ofDecember 31, 2014

ChangeCommon stock

238,772

238,772-

Capital surplus

405,045

374,578(30,467)

Retained earnings

1,168,266

1,662,437

494,171

Treasury stock(51,492)(48,694)

2,798

Accumulated othercomprehensive income

169,850

581,859

412,009

Available-for-sale financial
assets14,122

17,941

3,819

Cash flow hedges(19,942)(10,727)

9,215

Exchange differences ontranslating foreign operations

175,670

574,645398,975

1,930,441

2,808,952

878,511

Total equity attributable toowners of the parent

Equity attributable to owners of the parent totaled ¥2,808,952 million, for a ¥878,511 million (45.5%) increase
from the previous fiscal year-end. This was mainly due to increases from the previous fiscal year-end inretained earnings and accumulated other comprehensive income of ¥494,171 million and ¥412,009 million,
respectively. The increase in retained earnings primarily reflected net income attributable to owners of the20

SoftBank Corp. Consolidated Financial Report
For the nine-month period ended December 31, 2014

parent of ¥579,446 million.

The increase in accumulated other comprehensive income was mainly

attributable to an increase in exchange differences on translating foreign operations due to the yen at the endof the third quarter depreciating against the U.S. dollar from the previous fiscal year-end.
(Non-controlling Interests)
Non-controlling interests totaled ¥1,017,766 million, for a ¥117,825 million (13.1%) increase from theprevious fiscal year-end.

b. Cash Flows
Cash flows for the period were as follows:
Cash and cash equivalents at the end of the third quarter totaled ¥2,448,707 million, for a ¥485,217 million
increase from the previous fiscal year-end.
(Millions of yen)

Nine-month Period
Ended Dec. 31, 2013 (Note 8)

Nine-month Period
Ended Dec. 31, 2014

ChangeCash flows from operating activities

497,657

799,427

301,770

Cash flows from investing activities(2,376,501)(1,359,208)

1,017,293

Cash flows from financing activities

2,447,322

951,003(1,496,319)(498,007)(193,778)

304,229(Reference)
Cash flows from operating activities- capital expenditure (Note 9)

Notes:
8. Retrospective adjustments are made in accordance with the adoption of IFRIC 21 “Levies.” Please refer to page 33 “2.
Significant accounting policies” under “3. Condensed Interim Consolidated Financial Statements (6) Notes to Condensed
Interim Consolidated Financial Statements” for details on the retrospective adjustments.
9. Outlays for purchase of property, plant and equipment and intangible assets.

(a) Cash Flows from Operating Activities
Net cash provided by operating activities totaled ¥799,427 million (compared with ¥497,657 million provided in
the same period of the previous fiscal year). The primary components of cash flows were as follows:i. Net income totaled ¥640,724 million.
ii. The main items added to net income were ¥793,658 million in depreciation and amortization, ¥476,518
million in income taxes, and ¥264,168 million in finance cost.
iii. The main item subtracted from net income was ¥599,806 million in dilution gain from changes in equity interest.
iv. Interest paid was ¥298,017 million.
v. Income taxes paid was ¥388,089 million.
(b) Cash Flows from Investing Activities
Net cash used in investing activities was ¥1,359,208 million (compared with ¥2,376,501 million used in the same
period of the previous fiscal year). The primary components of cash flows were as follows:i. Outlays for purchase of property, plant and equipment and intangible assets amounted to ¥993,205 million.
ii. Payments for acquisition of investments amounted to ¥454,078 million.

21

This was mainly attributable toSoftBank Corp. Consolidated Financial Report
For the nine-month period ended December 31, 2014

acquisitions of marketable securities amounting to ¥248,848 million for short-term trading purposes primarily
by Sprint and Brightstar.

Payments also included investments in Jasper Infotech Private Limited, theoperator of the online marketplace snapdeal.com in India, and Grabtaxi Holdings Pte Ltd, the provider of amobile taxi booking application in South East Asia, and others.
iii. Proceeds from sales/redemption of investments totaled ¥268,318 million.

This was mainly attributable to¥249,718 million of sale of marketable securities acquired for short-term trading primarily by Sprint andBrightstar.

(c) Cash Flows from Financing Activities
Net cash provided by financing activities was ¥951,003 million (compared with ¥2,447,322 million provided in
the same period of the previous fiscal year). The primary components of cash flows were as follows:(Items Increasing Cash Flows)
Proceeds from long-term interest-bearing debt amounted to ¥1,725,939 million. The components were as follows:
・ Proceeds from issuance of corporate bonds of ¥1,134,317 million.

This consisted of SoftBank Corp.’sissuance of unsecured straight corporate bonds and unsecured subordinated corporate bonds.
・ Proceeds from sale and leaseback of newly acquired equipment of ¥312,225 million.
・ Proceeds from long-term borrowings of ¥279,397 million.

This was mainly due to borrowings madethrough securitization of installment sales receivables at SoftBank Mobile Corp.
(Items Decreasing Cash Flows)i. Repayment of long-term interest-bearing debt was ¥598,581 million.

The primary components were as

follows:
・ Repayment of long-term borrowings of ¥270,611 million. This was mainly due to SoftBank Mobile Corp.
repaying borrowings made through securitization of installment sales receivables.
・ Repayment of lease obligations of ¥222,227 million.
・ Redemption of corporate bonds of ¥63,446 million.

This was mainly due to SoftBank Corp.’s redemptionof its unsecured straight corporate bonds totaling ¥44,900 million.
ii. Decrease in short-term interest-bearing debt, net was ¥68,391 million.
iii. Payment for purchase of subsidiaries’ equity from non-controlling interests of ¥48,127 million.

This wasmainly due to the additional purchase of shares of Brightstar Global Group Inc., the parent company (100%ownership) of Brightstar.

(3) Qualitative Information Regarding Forecasts on Consolidated Results of Operations
The Company projects net sales of ¥8 trillion, EBITDA (Note 10) of approximately ¥2 trillion, and operating incomeof ¥900 billion for the fiscal year ending March 31, 2015. The operating income for the fiscal year ended March
31, 2014 of ¥1,077.0 billion (after retrospective adjustments) included gain from remeasurement relating tobusiness combination of ¥253.9 billion. The forecasted operating income of ¥900 billion for the fiscal year
ending March 31, 2015 does not include any temporary gains.
Note:
10. EBITDA = net sales - cost of sales - selling, general and administrative expenses + depreciation and amortization

22

SoftBank Corp. Consolidated Financial Report
For the nine-month period ended December 31, 2014

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

Presentation

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

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

Standard
IAS 32(Amendments)
IFRIC 21

Financial Instruments:

The details are described in “Note 2. Significant accounting policies” under “3. Condensed Interim Consolidated Financial
Statements (6) Notes to Condensed Interim Consolidated Financial Statements.”(Changes in accounting estimates)
Sprint revised its methodology and assumptions used in estimating the value for returned handsets during the three-month
period ended December 31, 2014.
The details are described in “Note 3. Significant judgments and estimates” under “3. Condensed Interim Consolidated
Financial Statements (6) Notes to Condensed Interim Consolidated Financial Statements.”

23

SoftBank Corp. Consolidated Financial Report
For the nine-month period ended December 31, 2014

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

As ofMarch 31, 2014*

As ofDecember 31, 2014

AssetsCurrent assets
Cash and cash equivalents
Trade and other receivables
Other financial assets
Inventories
Other current assets
Total current assets

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

2,448,707
1,890,597
234,909416,509
270,038
5,260,760

Non-current assets
Property, plant and equipment
Goodwill
Intangible assets
Investments accounted for using the equity method
Other financial assets
Deferred tax assets
Other non-current assets
Total non-current assets
Total assets

3,586,327
1,539,607
6,177,701
304,318
401,693
182,246
167,261
12,359,153
16,690,127

4,189,594
1,635,685
6,978,064
1,142,757
674,609
169,030
187,854
14,977,593
20,238,353

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

24

SoftBank Corp. Consolidated Financial Report
For the nine-month period ended December 31, 2014

(Millions of yen)

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

As ofDecember 31, 2014

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

1,551,293
2,023,689
20,697
135,307
66,280652,079
4,449,345

Total liabilities

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

9,319,490
26,031
114,599
140,286
2,018,399
343,485
11,962,290
16,411,635

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

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

238,772
374,578
1,662,437(48,694)581,859
2,808,952
1,017,766
3,826,718
20,238,353

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

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

25

SoftBank Corp. Consolidated Financial Report
For the nine-month period ended December 31, 2014

(2) Condensed Interim Consolidated Statements of Income and Comprehensive Income
For the nine-month period ended December 31
Condensed Interim Consolidated Statements of Income(Millions of yen)

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

Earnings per share attributable to owners of the parent
Basic (yen)Diluted (yen)Nine-month period ended
December 31, 2013*
4,561,703(2,635,737)
1,925,966

Nine-month period ended
December 31, 2014
6,431,167(3,923,910)
2,507,257(1,233,892)(1,691,231)

253,886-(5,328)940,632(186,632)
19,962
1,599
38,984
814,545(275,279)
539,266(27,981)788,045(264,168)
12,061
599,806(18,502)
1,117,242(476,518)
640,724

499,831
39,435539,266

579,446
61,278640,724

419.54418.77487.45486.86

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

26

SoftBank Corp. Consolidated Financial Report
For the nine-month period ended December 31, 2014

Condensed Interim Consolidated Statements of Comprehensive Income(Millions of yen)

Nine-month period ended
December 31, 2013*

Nine-month period ended
December 31, 2014

539,266

640,724

17,174(45,985)

17,174(45,985)(42,514)(136,892)

4,736
9,096

163,750

423,151

18,38743,3082,731

480,291

19,905559,171434,306
1,075,030

494,41264,759559,171954,777
120,253
1,075,030

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

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

27

SoftBank Corp. Consolidated Financial Report
For the nine-month period ended December 31, 2014

For the three-month period ended December 31
Condensed Interim Consolidated Statements of Income(Millions of yen)Three-month period ended Three-month period ended
December 31, 2013*
December 31, 2014
1,963,091
2,326,803(1,231,914)(1,483,260)
731,177
843,543

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

Earnings per share attributable to owners of the parent
Basic (yen)Diluted (yen)(527,263)(453)
203,461(80,770)
23,74239,744
186,177(92,423)
93,754(633,901)(18,255)
191,387(92,919)
31,357(8,364)
121,461(89,178)
32,28389,664
4,090
93,754

18,736
13,54732,283

75.30
75.02

15.76
14.68

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

28

SoftBank Corp. Consolidated Financial Report
For the nine-month period ended December 31, 2014

Condensed Interim Consolidated Statements of Comprehensive Income(Millions of yen)Three-month period ended
December 31, 2013*

Three-month period ended
December 31, 2014

93,75432,283

17,185(45,739)

17,185(45,739)

4,693
3,340

5,844
4,839

221,175

283,710

11,492

41,912

240,700

336,305

257,885351,639

290,566
322,849

306,372
45,267
351,639

273,331
49,518322,849

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

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

29

SoftBank Corp. Consolidated Financial Report
For the nine-month period ended December 31, 2014

(3) Condensed Interim Consolidated Statements of Changes in Equity
For the nine-month period ended December 31, 2013*(Millions of yen)
Equity attributable to owners of the parent

As of April 1, 2013
Effect of retrospective
adjustments
As of April 1, 2013
(after adjustments)
Comprehensive income
Net income
Other comprehensive
incomeTotal comprehensive
incomeTransactions with owners
and other transactions
Cash dividends
Transfer of accumulated
other comprehensive
income to retained
earnings
Purchase and disposal oftreasury stock
Changes from businesscombination
Acquisition of options toconvert tosubsidiaries’ common
stocksChanges in interests in
subsidiaries
Share-based paymenttransactions
Other
Total transactions withowners and othertransactions
As of December 31, 2013

Commonstock
238,772

Capitalsurplus436,704

Retainedearnings
712,088

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

238,772

436,704-

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

248,026

Total
1,612,756--(18,315)(654)(18,969)

693,773(22,834)

248,026

1,594,441

317,030

1,911,471-

499,831--499,831

39,435539,266

-

-

-

-

(5,419)(5,419)25,324

19,905--499,831-(5,419)494,41264,759559,171--(47,669)--(47,669)(13,641)(61,310)--

13,711-(13,711)

-

-

-

-

(13)

(583)

(28,765)-(29,361)-(29,361)

-

-

-

-

-

-

566,637

566,637-(10,323)---(10,323)-(10,323)-(21,704)---(21,704)(46,018)(67,722)

-

297

-

-

-

297

6,428

6,725

-

-

-

-

-

-

946

946

-

(31,743)(34,541)(28,765)(13,711)(108,760)

514,352

405,592

238,772

404,961

1,159,063(51,599)

228,896

1,980,093

896,141

2,876,234

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

30

SoftBank Corp. Consolidated Financial Report
For the nine-month period ended December 31, 2014

For the nine-month period ended December 31, 2014
(Millions of yen)
Equity attributable to owners of the parent

As of April 1, 2014
Effect of retrospective
adjustments*
As of April 1, 2014
(after adjustments)
Comprehensive income
Net income
Other comprehensive
incomeTotal comprehensive
incomeTransactions withowners and othertransactions
Cash dividends
Transfer of accumulated
other comprehensive
income to retained
earnings
Purchase and disposalof treasury stock
Changes from businesscombination
Changes in interestsin subsidiaries
Share-based paymenttransactions
Other
Total transactions
with owners andother transactions
As of December 31, 2014

Accumulated
othercomprehensive
income169,617

Total
1,955,374

Noncontrollinginterests
903,296-

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

1,168,266(51,492)

169,850

1,930,441

899,941

2,830,382-

579,446--

579,446

61,278640,724

-

-

-

-

375,331375,33158,975434,306--

579,446-

375,331954,777

120,253

1,075,030--(47,547)--(47,547)(16,222)(63,769)--(36,678)-

36,678

-

-

-

-

-

(1,050)

2,798

-

1,748

-

1,748

-

-

-

-

-

-

1,423

1,423

-

(31,716)---(31,716)

7,363(24,353)

-

1,249

-

-

-

1,249

6,169

7,418

-

-

-

-

-

-

(1,161)(1,161)-(30,467)(85,275)

2,798

36,678(76,266)(2,428)(78,694)

238,772

374,578

1,662,437(48,694)581,859

2,808,952

1,017,766

3,826,718

Commonstock
238,772

Capitalsurplus405,111Retainedearnings
1,193,366

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

238,772

405,045-

Total equity
2,858,670

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

31

SoftBank Corp. Consolidated Financial Report
For the nine-month period ended December 31, 2014

(4) Condensed Interim Consolidated Statements of Cash Flows(Millions of yen)

Nine-month period ended
December 31, 2013*

Nine-month period ended
December 31, 2014

539,266
623,986

640,724
793,658(253,886)-

186,632(19,962)(1,599)(38,984)
275,279(84,517)(43,446)

264,168(12,061)(599,806)
18,502476,518(114,314)
154,275

Other(198,926)(140,081)

Subtotal

983,843

1,481,583

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

6,231(225,388)(267,029)
497,657

3,950(298,017)(388,089)
799,427(995,664)(993,205)(181,004)
172,929(454,078)
268,318(1,568,582)(18,794)

310,104-(114,284)(2,376,501)(161,449)(1,359,208)(101,431)(68,391)

4,380,354(1,678,922)

1,725,939(598,581)(71,869)(48,127)(47,195)(13,533)(20,082)
2,447,322(47,255)(16,209)
3,627
951,003

39,101

93,995607,579
1,439,057
2,046,636

485,217
1,963,490
2,448,707

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

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

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

32

SoftBank Corp. Consolidated Financial Report
For the nine-month period ended December 31, 2014(5) Significant Doubt about Going-Concern Assumption
For the nine-month period ended December 31, 2014
There are no applicable items.
(6) Notes to Condensed Interim Consolidated Financial Statements
1. Definition of company name and abbreviation used in the notes
Company names and abbreviations used in the notes, except as otherwise stated or interpreted differently in thecontext, are as follows:
Company name / Abbreviation

Definition“SoftBank Corp.”

SoftBank Corp. (stand-alone basis)

The “Company”

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

Sprint Corporation (formerly Sprint Nextel Corporation)“Clearwire”

Clearwire Corporation“GungHo”

GungHo Online Entertainment, Inc.

“Supercell”

Supercell Oy“Kahon 3”

Kahon 3 Oy

“Alibaba”

Alibaba Group Holding Limited

2. Significant accounting policies
The significant accounting policies applied in these condensed interim consolidated financial statements are
consistent with those for the fiscal year ended March 31, 2014, except for the adoption of the following new
standards and interpretations. Income taxes for the nine-month period ended December 31, 2014 are calculated
based on the estimated effective tax rate for the year. Certain defined benefit liabilities as of December 31, 2014
are calculated based on reasonable estimates with the actuarial calculation made as of March 31, 2014.
Adoption of new standards and interpretations
The following standards are applied by the Company during the three-month period ended June 30, 2014.
Standard
IAS 32(Amendments)
IFRIC 21

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

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

33SoftBank Corp. Consolidated Financial Report
For the nine-month period ended December 31, 2014

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

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

As of
December 31, 2014
(9,204)
8,366
4,008
3,170

Increase in other current liabilities
Increase in total liabilities

33,41833,418

6,397
6,397

Decrease in capital surplus
Decrease in retained earnings
Increase in accumulated other comprehensive income
Decrease in non-controlling interests
Decrease in total equity(66)(25,100)
233(3,355)(28,288)(65)(3,092)985(1,055)(3,227)Nine-month period
ended
December 31, 2013
Decrease in cost of sales
14,905Decrease in selling, general and administrative expenses
1,499
Increase in income taxes(3,260)
Increase in net income
13,144Nine-month period
ended
December 31, 2014
28,772
1,222(5,505)24,489Decrease in other current assets
Increase in goodwill
Increase in deferred tax assets
Increase in total assets(Condensed Interim Consolidated Statements of Income)(Millions of yen)

Earnings per share attributable to owners of the parent
Increase in earnings per share-basic (yen)Increase in earnings per share-diluted (yen)

9.74
9.73

18.51
18.49

Nine-month period
ended
December 31, 201313,144Nine-month period
ended
December 31, 2014
24,489441

855

13,58525,344(Condensed Interim Consolidated Statements of Comprehensive Income)(Millions of yen)

Increase in net income
Increase in exchange differences ontranslating foreign operations
Increase in total comprehensive income

34

SoftBank Corp. Consolidated Financial Report
For the nine-month period ended December 31, 2014

(Condensed Interim Consolidated Statements of Cash Flows)(Millions of yen)

Cash flows from operating activities
Increase in net income
Increase in income taxes
Decrease in otherNet cash provided by (used in) operating activities

Nine-month period
ended
December 31, 2013

Nine-month period
ended
December 31, 2014

13,144
3,260(16,404)-

24,4895,505(29,994)-

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

3. Significant judgments and estimates
In preparing consolidated financial statements under IFRSs, management makes judgments, estimates, andassumptions that affect the application of accounting policies and carrying amounts of assets, liabilities, revenue, andexpenses. These estimates and underlying assumptions are based on the management’s best judgments, throughtheir evaluation of various factors that were considered reasonable as of the period-end, based on historical experienceand by collecting available information. By the nature of its estimates or assumptions, however, actual results in the
future may differ from those estimates or assumptions.
Estimates and underlying assumptions are continuously reviewed. Revisions to accounting estimates are recognizedin the period in which the estimate is revised as well as in the future periods.
Significant judgments, estimates and assumptions that affect the amounts recognized in the Company’s condensed
interim consolidated financial statements are consistent with those for the fiscal year ended March 31, 2014 except as
described in the following paragraph.
When estimating the value of returned inventory, Sprint evaluates many factors and obtains information to support theestimated value of used devices and the useful lives.
Recently, Sprint has observed sustained value and extended useful lives for handsets leading to an increase in theestimated value for returned inventory. As a result, Sprint revised its methodology and assumptions used inestimating the value for returned handsets during the three-month period ended December 31, 2014. The change inestimate was accounted for on a prospective basis effective October 1, 2014.
The effect of the change in estimate, which was included in “Cost of sales” in the Company’s condensed interim
consolidated statements of income, reduced the Company’s operating loss by approximately ¥11,439 million(approximately $100 million) for the nine-month period ended December 31, 2014. In addition, this change resulted
in an increase to “Inventories” on the condensed interim consolidated statements of financial position of
approximately ¥12,055 million (approximately $100 million) as of December 31, 2014.

35

SoftBank Corp. Consolidated Financial Report
For the nine-month period ended December 31, 2014

4. Business combinations
For the nine-month period ended December 31, 2013
(1) GungHo Online Entertainment, Inc.
a. Overview of consolidation
Masayoshi Son, chairman and CEO of the SoftBank Corp., has entered into a Memorandum of Understanding
on Exercise of Voting Rights for Deferment of Execution of Pledges (the “MOU”) with respect to the shares of
GungHo on April 1, 2013, with Heartis G.K. (“Heartis”; percentage of voting interest: 18.50%), which is thesecond largest shareholder of GungHo and Taizo Son’s asset management company and of which Taizo Son,chairman of GungHo, is the representative director. Under the MOU, in order to have Son Holdings Inc., ofwhich Masayoshi Son is a director and which is a Masayoshi Son’s asset management company, defer the
execution of pledges over the shares of GungHo held by Heartis, Heartis has agreed, effective as of April 1,
2013, to the effect that at the shareholders meeting of GungHo, Heartis will exercise the voting rights for all of
the shares of GungHo it holds in accordance with Masayoshi Son’s directions. Also, a subsidiary of theCompany, SoftBank Mobile Corp., undertook the Tender Offer from April 1, 2013 to April 26, 2013 andacquired 6.37% of GungHo shares (purchase price: ¥24,976 million). The Company and Heartis together
came to represent the majority of the voting rights in GungHo’s shares (percentage of voting interest: 58.50%)
and GungHo Online Entertainment changed from an equity method associate to a subsidiary of the Company.
With this transaction, the Company expects that it will be able to enhance mobile content, and to improve theefficiency in operation of the mobile communications business and profitability competitiveness by combining
smartphone-focused development capability and infrastructure held by the Company, and planning and creating
capabilities in the smartphone game industry held by GungHo.
(Business description of GungHo)(a) Planning, development, operation and distribution of online games(b) Planning, development and sales of mobile content(c) Planning, development and sales of character goods(d) Planning, development and distribution of other entertainment content(Acquisition date)
April 1, 2013b. Consideration transferred and the components(Millions of yen)

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

Acquisition date
(April 1, 2013)
24,976
153,620A

178,596

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

36SoftBank Corp. Consolidated Financial Report
For the nine-month period ended December 31, 2014c. Fair values of assets and liabilities, non-controlling interests and goodwill on the acquisition date(Millions of yen)

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

Current assets
Intangible assets1
Other non-current assets
Total assets

10,89729,94940,846

Current liabilities
Non-current liabilities
Total liabilities
Net assets

B

81,382

Non-controlling interests2
Goodwill3

C48,818146,032

A-(B-C)

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

d. Payment for acquisition of control over subsidiaries(Millions of yen)

Payment for the acquisition by cash
Cash and cash equivalents held by the acquiree at the time ofacquisition of control
Payment for the acquisition of control over the subsidiary bycash

Acquisition date
(April 1, 2013)(24,976)
11,025(13,951)e. Sales and net income of the acquiree
The amount of the acquiree’s sales and net income before elimination of inter-company transactions and after
the acquisition date are ¥132,156 million and ¥29,839 million, respectively, which are recorded in thecondensed interim consolidated statements of income for the nine-month period ended December 31, 2013.
In addition, the above net income includes amortization expenses, which are related to intangible assets
recognized at the acquisition date, and other.

37

SoftBank Corp. Consolidated Financial Report
For the nine-month period ended December 31, 2014(2) Sprint
a. Overview of consolidation
On October 15, 2012, the Company and Sprint entered into a series of definitive agreements under which theCompany will invest in Sprint. After the completion of negotiations, the Company and Sprint agreed to amend a
portion of the transaction on June 11, 2013.
On July 10, 2013, SoftBank Corp. capitalized, through a wholly owned subsidiary, Starburst I, Inc., Sprint withan additional $18.5 billion and the total investment of SoftBank Corp. amounted to $21.6 billion, including $3.1
billion of corporate bonds with stock acquisition rights issued by Sprint Nextel Corporation (the “Bond”)
invested by Starburst II, Inc. on October 22, 2012. Of the invested amounts of $21.6 billion, $16.6 billion was
distributed to existing individual Sprint’s shareholders and $5 billion is used to strengthen Sprint. The Bond
held by Starburst II, Inc. was converted into shares.
Through the transaction, approximately 72% of Sprint Nextel Corporation shares were acquired for $7.65 pershare in cash, and the remaining shares were converted into Sprint shares on a one-to-one basis, which
succeeded Sprint Nextel Corporation and became listed on the New York Stock Exchange.
As a result of the transaction, Starburst I, Inc., owns approximately 78% of the shares of Sprint and Sprint
became a subsidiary of SoftBank Corp.
Prior to the transaction, Clearwire, a company providing high-speed wireless communication services in the
U.S., became a wholly owned subsidiary of Sprint on July 9, 2013.
From August 1, 2013 to September 16, 2013, SoftBank Corp., through Galaxy Investment Holdings, Inc., awholly-owned subsidiary in the U.S., additionally purchased approximately 2% of the shares of Sprint(purchase price: $500 million). As a result, the Company’s ownership in the outstanding Sprint common
stock became approximately 80% as of December 31, 2013.

Structure after completion of the transaction

38SoftBank Corp. Consolidated Financial Report
For the nine-month period ended December 31, 2014b. Purpose of consolidation(a) Enables the Company to establish an operating base as one of the largest mobile Internet companies in theworld. The combined subscriber base will be one of the largest between the U.S. and Japan*.
(b) Enables the Company to leverage its deep expertise in smartphones and next-generation mobile networks,
and its track record of success in competing in mature markets with large incumbents, to enhancecompetitiveness of Sprint in the U.S.
(c) Provides Sprint $5 billion of new capital for its mobile network, strategic investments, and balance sheet aspart of its continued efforts to fortify its operating base towards future growth.
Note:
Based on Telecommunications Carriers Association (“TCA”) data and disclosed material by relevant companies as ofthe end of June 2013.

c. Summary of Sprint

Name

Sprint Corporation

Address

6200 Sprint Parkway, Overland Park, Kansas

Name and title of representative

Business description

Marcelo Claure, Chief Executive Officer and Director(Assumed the post on August 11, 2014)
Holding company
Provision of telecommunications services through its operating subsidiaries

Note

The Chairman of the Board and the Vice Chairman of the Board wereassumed by Masayoshi Son, the Chairman & CEO of SoftBank Corp. andRonald Fisher, Director of SoftBank Corp., respectively. Adm. Mike Mullen,
former Chairman of the Joint Chiefs of Staff, has been appointed as the
Director in charge of security.

Consolidated sales$35,493 million (For the year ended December 31, 2013, US GAAP)

d. Acquisition dateJuly 10, 2013

e. Consideration transferred and the component(Millions of yen)

Payment by cash
Conversion of corporate bonds with stock acquisition rights
held at the time of acquisition
Total consideration transferredA

Acquisition date(July 10, 2013)
1,875,149
313,534
2,188,683

Acquisition-related costs of ¥12,106 million arising from the business combination are recognized in “Selling,
general and administrative expenses,” with ¥3,751 million for the year ended March 31, 2013, and ¥8,355
million for the nine-month period ended December 31, 2013.

39

SoftBank Corp. Consolidated Financial Report
For the nine-month period ended December 31, 2014

f. Fair values of assets and liabilities, non-controlling interests and goodwill on the acquisition date1(Millions of yen)

Acquisition date(July 10, 2013)
Current assets
Cash and cash equivalents
Trade and other receivables2
Other financial assets
Inventories
Other current assets
Total current assets

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

Non-current assets
Property, plant and equipment3
Intangible assets3
Other financial assets
Other non-current assets
Total non-current assets
Total assets

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

Current liabilities
Interest-bearing debt3
Trade and other payables
Income taxes payables
Provisions4
Other current liabilities
Total current liabilities

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

Non-current liabilities
Interest-bearing debt3
Other financial liabilities
Defined benefit liabilities
Provisions4Deferred tax liabilities5
Other non-current liabilities
Total non-current liabilities
Total liabilities

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

Net assets

B

2,064,311

Non-controlling interests6

C

466,735

Basis adjustment7
Goodwill8

D311,659
279,448

A-(B-C)-DThe above amount is translated at the exchange rate (USD = JPY101.14) as of the acquisition date.
Notes:
1. Adjustment of the provisional amount
Consideration transferred is allocated to acquired assets and assumed liabilities based on the fair value on the acquisition
date.

Allocation of the consideration transferred was completed during the three-month period ended June 30, 2014.

details of the adjustments from the initial provisional amounts are as follows.

The

Due to the additional analysis performed by

Sprint management on the fair value of FCC licenses, intangible assets increased by ¥30,342 million and non-controllinginterests increased by ¥29,029 million.

As a result, goodwill decreased by ¥14,970 million.

40

SoftBank Corp. Consolidated Financial Report
For the nine-month period ended December 31, 2014

2. Estimation of fair values of acquired receivables, contractual amounts receivables and amounts not expected to be collected
As for the fair value of ¥332,553 million of acquired receivables and other receivables (mainly sales receivables), the total
amount of contracts is ¥353,388 million and the estimate of the contractual cash flows not expected to be collected at theacquisition date is ¥20,835 million.
3. Property, plant and equipment, intangible assets and interest-bearing debt
The components of the carrying amounts are as follows:(Property, plant and equipment)(Millions of yen)
Acquisition date(July 10, 2013)
Buildings and structures

140,270

Telecommunications equipment

794,524Land

18,362

Construction in progress

298,928

Other

39,280Total

1,291,364(Intangible assets)(Millions of yen)
Acquisition date(July 10, 2013)
Intangible assets with finite useful lives
Software138,330

Customer relationships

700,192

Favorable lease contracts

148,979

Trademarks

52,593

Other

47,928Intangible assets with indefinite useful lives
FCC licenses

3,617,677

Trademarks

600,266

Total

5,305,965(Interest-bearing debt)(Millions of yen)
Acquisition date(July 10, 2013)
Current
Current portion of long-term borrowings

13,380Current portion of corporate bonds

63,317

Current portion of lease obligations

10,264

Total

86,961

Non-current
Long-term borrowings

34,854

Corporate bonds

2,590,208

Lease obligations

43,101

Total

2,668,163

41

SoftBank Corp. Consolidated Financial Report
For the nine-month period ended December 31, 2014

4. Provisions
Provisions recognized by the business combination are mainly asset retirement obligations, lease exit costs related to the
shutdown of the Nextel Platform, and exit costs related to payments that will continue to be made under Sprint’s backhaul
access contracts for which it will no longer be receiving any economic benefit. Backhaul is an intermediary network whichconnects the cell towers to the local switching center.
5. Deferred tax liabilities
Deferred tax liabilities recognized by this business combination are mainly temporary differences related to FCC licenses,
and trademarks with indefinite useful lives.
6. Non-controlling interests
Non-controlling interests in an acquiree that are present ownership interests and entitle their holders to a proportionate shareof the entity’s net assets in the event of liquidation are measured based on the proportionate interests at the acquisition datein the identifiable net assets of the acquiree at the acquisition date.
7. Basis adjustment
The Company entered into a foreign currency forward contract to hedge exchange risks resulting from the investment in
Sprint.

This scheduled transaction was designated as a cash flow hedge.

¥311,659 million, the fair value of the hedging

instruments at the acquisition date, was deducted from initial amount of goodwill which was recognized from theacquisition.
8. Goodwill
Goodwill reflects excess earning power expected from the future business development and the synergy with existing
businesses.

g. Payment for acquisition of control over subsidiaries(Millions of yen)

Payment for the acquisition by cash
Cash and cash equivalents held by the acquiree at the time ofacquisition of control
Payment for the acquisition of control over the subsidiary by cash
Proceeds from settlement of foreign currency forward contract for
acquisition of control of subsidiaries
Payment for the acquisition of control over the subsidiary by cash,net

Acquisition date(July 10, 2013)(1,875,149)
447,873(1,427,276)
310,104(1,117,172)h. Sales and net loss of the acquiree
The amounts of the acquiree’s sales and net loss before elimination of inter-company transactions after theacquisition date, which are recorded in the condensed interim consolidated statements of income for thenine-month period ended December 31, 2013, are ¥1,684,439 million and ¥150,270 million, respectively.
In addition, the above net loss includes amortization expenses, which are related to intangible assets recognized at
the acquisition date, and other.

(3) WILLCOM, Inc.
a. Overview of consolidation
SoftBank Corp. owns 100% of shares issued by WILLCOM, Inc. However, WILLCOM, Inc. was in the processof rehabilitation under the Corporate Reorganization Act and SoftBank Corp. did not have effective control over
WILLCOM, Inc. Therefore, WILLCOM, Inc. was not treated as a subsidiary.
42SoftBank Corp. Consolidated Financial Report
For the nine-month period ended December 31, 2014

WILLCOM, Inc. made prepayments of rehabilitation claims and rehabilitation security interests in June 2013,
and filed a petition with the Tokyo District Court for the termination of its rehabilitation proceedings.
WILLCOM, Inc. received an order of termination of rehabilitation proceedings from the Tokyo District Court on
July 1, 2013. Consequently, WILLCOM, Inc. became a subsidiary of SoftBank Corp.
WILLCOM, Inc. conducted an absorption type merger with eAccess Ltd., eAccess Ltd. being the surviving
company and WILLCOM, Inc. being the dissolving company, on June 1, 2014 and changed its company name to
Ymobile Corporation on July 1, 2014.
(Business description of WILLCOM, Inc.)
Telecommunications business(Acquisition date）
July 1, 2013b. Consideration transferred and the components(Millions of yen)

Acquisition date(July 1, 2013)
Fair value of equity interest in WILLCOM, Inc. alreadyheld at the time of the acquisition

104,070
A

Total consideration transferred

104,070

As a result of the reevaluation of 100% equity interest already held by the Company at the time of the acquisitionof control in WILLCOM, Inc. at fair value, the Company recognized a gain of ¥103,766 million. This gain ispresented as “Gain from remeasurement relating to business combination” in the condensed interim consolidated
statements of income.

c. Fair value of assets and liabilities, non-controlling interests and goodwill on the acquisition date(Millions of yen)

Acquisition date(July 1, 2013)
79,75446,026
43,63914,883
184,302

Current assets
Property, plant and equipment
Intangible assets1
Other non-current assets
Total assets

83,95816,284
100,242

Current liabilities
Non-current liabilities
Total liabilities
Net assets

B

84,060Non-controlling interests2

C

222

A-(B-C)

20,232

3

Goodwill

43

SoftBank Corp. Consolidated Financial Report
For the nine-month period ended December 31, 2014

Notes:
1. Intangible assets
Customer relationships of ¥25,004 million are included.
2. Non-controlling interests
Non-controlling interests are from WILLCOM OKINAWA, Inc. (proportionate interest held by the Company is 80%), a
subsidiary of WILLCOM, Inc., and they are measured based on the proportionate interests after the acquisition in theidentifiable net assets of the acquiree at the acquisition date.
3. Goodwill
Goodwill reflects excess earning power expected from the future business development, assembled workforce and thesynergy with existing business.

d. Estimation of fair values of acquired receivables, contractual amounts receivables and amounts not expected to becollected
The main components of acquired trade and other receivables are installment receivables and the fair value is¥31,039 million. The total amount of contractual receivables is ¥31,328 million and the best estimate of thecontractual cash flows not expected to be collected as of the acquisition date is ¥289 million.
e. Proceed from acquisition of control over subsidiaries(Millions of yen)

Acquisition date(July 1, 2013)
Cash and cash equivalents held by the acquiree at the time ofacquisition of control
Proceed in cash from the acquisition of control over thesubsidiary

14,043
14,043f. Sales and net loss of the acquiree
The amounts of the acquiree’s sales and net loss before elimination of inter-company transactions after theacquisition date, which are recorded in the condensed interim consolidated statements of income for thenine-month period ended December 31, 2013, are ¥82,293 million and ¥2,315 million, respectively.
In addition, the above net loss includes amortization expenses, which are related to intangible assets recognized at
the acquisition date, and other.

(4) Supercell
a. Overview of consolidation
SoftBank Corp. and GungHo, a subsidiary of SoftBank Corp., communally established Kahon 3, a special
purpose company in Finland, SoftBank Corp. indirectly investing $1,224 million (investing ratio of
approximately 80%) and GungHo indirectly investing approximately $306 million (investing ratio of
approximately 20%). Through Kahon 3, the special purpose company, SoftBank Corp. and GungHo acquired
approximately 51% (diluted) of voting stock of Supercell, with a total of $1.53 billion (¥150,720 million) on
October 31, 2013. Accordingly, Supercell, a mobile game company headquartered in Finland, became asubsidiary of SoftBank Corp.
SoftBank Corp. acquired all interests of Kahon 3 held indirectly by GungHo on August 26, 2014.

44

SoftBank Corp. Consolidated Financial Report
For the nine-month period ended December 31, 2014

Structure as of October 31, 2013b. Purpose of consolidation
Supercell is a mobile game company headquartered in Finland. This new strategic partnership with SoftBank
Corp. and GungHo will help accelerate Supercell’s goal of becoming “the first truly global games company.”
GungHo started its online game business in 2002, and it has since accumulated significant expertise andproduced notable results in the development and operation of online games. Through the transaction,
GungHo will leverage Supercell’s position among the apps in the Games category of the App Store andmarketing power abroad to enhance its global expansion.
c. Summary of Supercell
Name

Supercell Oy

Address

Itämerenkatu 11-13 00180 Helsinki Finland

Name and title of representative

Ilkka Paananen, Chief Executive Officer

Business description

Mobile/Social interactive entertainment

Common stock€2,500Date of foundation

May 14, 2010

Consolidated sales€519,093 thousands (For the year ended December 2013, Finnish GAAP)

d. Acquisition date
October 31, 2013
e. Consideration transferred and the component(Millions of yen)

Acquisition date
(October 31, 2013)
140,397

Payment by cashA

Total consideration transferred45

140,397

SoftBank Corp. Consolidated Financial Report
For the nine-month period ended December 31, 2014

Acquisition-related costs of ¥3,114 million arising from the business combination are recognized in “Selling,
general and administrative expenses.”

Kahon 3 acquired common and preferred stocks of Supercell and options, which can convert the preferredstocks to common stocks (“conversion options”), with a total of ¥150,720 million. The considerationtransferred for the business combination is ¥140,397 million, deducting the fair value of ¥10,323 million forthe preferred stocks and the conversion options from the total amount of ¥150,720 million to acquire Supercell.

The fair value of ¥10,323 million for the preferred stocks and the conversion option is deducted fromadditional paid-in capital as “Acquisition of options to convert to subsidiaries’ common stocks” in thecondensed interim consolidated statements of changes in equity.

f. Fair value of assets and liabilities, non-controlling interests and goodwill on the acquisition date(Millions of yen)

Acquisition date
(October 31, 2013)22,123
119,20473
141,400

Current assets
Intangible assets1
Other non-current assets
Total assets

22,51823,99346,511

Current liabilities
Non-current liabilities
Total liabilities
Net assets
Non-controlling interests2
Goodwill3

B

94,889C

53,29598,803A-(B-C)

Notes:
1. Intangible assets
Game titles of ¥119,099 million are included.
2. Non-controlling interests
Non-controlling interests in an acquiree that are present ownership interests and entitle their holders to a proportionate
share of the entity’s net assets in the event of liquidation are measured based on the proportionate interests at
acquisition date in the identifiable net assets of the acquiree at acquisition date.
3. Goodwill
Goodwill reflects excess earning power expected from the future business development and assembled workforce forgame development and others, and the synergy with existing businesses.

46

SoftBank Corp. Consolidated Financial Report
For the nine-month period ended December 31, 2014

g. Payment for the acquisition of control over subsidiaries(Millions of yen)

Acquisition date
(October 31,2013)
Payment for the acquisition by cash
Cash and cash equivalents held by the acquiree at the time ofacquisition of control(140,397)

Payment for the acquisition of control over the subsidiary by cash

(137,902)

2,495

h. Sales and net loss of the acquiree
The amounts of the acquiree’s sales and net loss before elimination of inter-company transactions after theacquisition date, which are recorded in the condensed interim consolidated statements of income for thenine-month period ended December 31, 2013, are ¥17,044 million and ¥123 million, respectively.
In addition, the above net loss includes amortization expenses, which are related to intangible assets recognized at
the acquisition date, and others.

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

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

47

SoftBank Corp. Consolidated Financial Report
For the nine-month period ended December 31, 2014

For the nine-month period ended December 31, 2013
(Millions of yen)
MobileCommunications

Sprint3

Reportable segments
Fixed-line
Telecommunications
Internet

Total

Other1

Reconciliations2

Consolidated

Net sales
Customers
Intersegment
Total
EBITDA
Depreciation andamortization
Segment income (loss)
Gain from remeasurement
relating to businesscombination

2,188,230 1,684,244

328,744295,932

4,497,150

64,553-4,561,703

195

78,681

2,044

96,51828,840(125,358)-

15,5982,203,828 1,684,439

407,425

297,976

4,593,668

93,393(125,358)

4,561,703

236,100

134,497

153,617

1,321,241

11,306(16,487)

1,316,060(275,800) (286,602)(45,129)(10,139)(617,670)(5,278)(1,038)(623,986)

521,227

89,368143,478

703,571

6,028(17,525)

692,074

797,027(50,502)

253,886(5,328)Other operating loss
Operating income

940,632

Finance cost

(186,632)

Equity in income ofassociates
Dilution gain from changes
in equity interests
Other non-operating
income19,962
1,599
38,984

Income before income tax

814,545

For the nine-month period ended December 31, 2014
(Millions of yen)
Reportable segments

SprintFixed-line
Telecommunications

Internet

Total

3,063,856

2,683,437

321,804

301,256

6,370,353

23,602

126,420

78,213

2,456

230,691

3,087,458

2,809,857

400,017

303,7126,601,044

895,560

461,566

125,179

148,551(323,777)(406,738)(43,858)

571,783

54,82881,321

MobileCommunications

Customers
Intersegment

Reconciliations2

Consolidated

60,814-

6,431,167

22,531(253,222)-

83,345(253,222)

6,431,167

1,630,856(4,858)(16,314)

1,609,684(12,092)(786,465)(6,243)(950)(793,658)

136,459

844,391(11,101)(17,264)

816,026

Other1

Net sales

Total
EBITDA
Depreciation andamortization
Segment income
Gain from remeasurement
relating to businesscombination-

Other operating loss

(27,981)

Operating income

788,045

Finance cost

(264,168)

Equity in income ofassociates
Dilution gain from changes
in equity interests

599,806

Other non-operating loss

(18,502)

12,061

Income before income tax

1,117,242

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

48

SoftBank Corp. Consolidated Financial Report
For the nine-month period ended December 31, 2014

For the three-month period ended December 31, 2013
(Millions of yen)
Reportable segments

SprintFixed-line
Telecommunications

Internet

Total

Other1810,930

923,386

110,076

100,772

1,945,164

17,927-

1,963,091

6,371

112

26,980914

34,377

10,693(45,070)-

MobileCommunications
Customers
Intersegment

Reconciliations2

Consolidated

Net sales

Total

817,301

923,498

137,056

101,686

1,979,541

28,620(45,070)

1,963,091

EBITDA
Depreciation andamortization

264,975

120,429

44,52752,311

482,242

1,875(6,156)477,961(100,205) (152,411)(15,402)(3,700)(271,718)(1,942)(387)(274,047)

164,770

29,125

48,611

210,524(67)(6,543)203,914Segment income (loss)(31,982)(453)

Other operating loss

203,461

Operating income
Finance cost
Equity in income ofassociates
Other non-operating
income(80,770)

Income before income tax

186,177

23,74239,744

For the three-month period ended December 31, 2014
(Millions of yen)
Reportable segments

SprintFixed-line
Telecommunications

Internet

Total

Other1

1,184,869

909,136

108,840

104,6142,307,459

9,188

117,285

26,874

793

154,140

1,194,057

1,026,421

135,714

105,407280,346

123,456

42,906(110,198)(145,354)

170,148(21,898)

MobileCommunications

Reconciliations2

Consolidated

19,344-

2,326,803

8,579(162,719)-

2,461,599

27,923(162,719)

2,326,803

51,330498,038(5,547)(5,374)

487,117(14,931)(4,396)(274,879)(2,300)(296)(277,475)

27,97546,934

223,159(7,847)(5,670)209,642

Net sales
Customers
Intersegment
Total
EBITDA
Depreciation andamortization
Segment income (loss)(18,255)

Other operating loss
Operating income

191,387

Finance cost

(92,919)

Equity in income ofassociates

31,357(8,364)

Other non-operating loss
Income before income tax

121,461

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

49

SoftBank Corp. Consolidated Financial Report
For the nine-month period ended December 31, 2014

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

Buildings and structures
Telecommunications equipment
Land
Construction in progress
Other
Total

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

As ofDecember 31, 2014
267,240
3,131,037
95,860409,683
285,774
4,189,594

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

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

50

As of
December 31, 2014

3,709,526
622,975

4,328,634
729,689

647,386
677,494140,217
166,52252,475
161,106
6,177,701

740,311628,375
150,726
132,30260,351
207,676
6,978,064

SoftBank Corp. Consolidated Financial Report
For the nine-month period ended December 31, 2014

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

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

As of
December 31, 2014

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

234,049
32,000484,169
168,949
384,104
200,000
48,022
1,551,293

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

2,181,088
6,361,238
685,023
92,141
9,319,490(2) Components of decrease in short-term interest-bearing debt
The components of “Decrease in short-term interest-bearing debt, net” in the condensed interim consolidated
statements of cash flows are as follows:(Millions of yen)

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

Nine-month period
ended
December 31, 2013
(133,431)
32,000(101,431)

Nine-month period
ended
December 31, 2014
(68,391)(68,391)

Note:
The Company borrowed a permanent loan in September 2013 and refinanced the bridge loan which was made for the
consolidation of Sprint. The increase and the decrease in short-term borrowings for the nine-month period ended December 31,
2013 include the increase of borrowings of ¥1,034.9 billion on July 10, 2013, from the bridge loan and the decrease ofborrowings by the repayment of the bridge loan in the amount of ¥1,284.9 billion (including the amount of repayment of ¥250
billion on December 21, 2012).

51

SoftBank Corp. Consolidated Financial Report
For the nine-month period ended December 31, 2014

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

Proceeds from long-term borrowings
Proceeds from issuance of corporate bonds1,5
Proceeds from sale and leaseback of newly acquired equipment
Total

Nine-month period
ended
December 31, 2013
2,378,670
1,665,232
336,452
4,380,354

Nine-month period
ended
December 31, 2014
279,397
1,134,317
312,225
1,725,939

Notes:
1. Corporate bonds issued for the nine-month period ended December 31, 2013 are as follows:

Company name / Name of bonds
SoftBank Corp.

Date of issuanceTotal amountof issuanceInterest
rate

Date of maturity

USD-denominated Senior Notes
due year 2020

April 23, 2013

$2,485 million¥244,176 million2

4.50%
3.29%3

April 15, 2020

Euro-denominated Senior Notes
due year 2020

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

4.63%
4.05%3

April 15, 2020

43rd Unsecured Straight
Corporate Bond

June 20, 2013

¥400,000 million

1.74%

June 20, 2018

44th Unsecured Straight Corporate
Bond

Nov. 29, 2013

¥50,000 million

1.69%

Nov. 27, 2020

7.25% Notes due 2021

Sept. 11, 2013

$2,250 million¥220,950 million

7.25%

Sept. 15, 2021

7.875% Notes due 2023

Sept. 11, 2013

$4,250 million¥417,350 million

7.88%

Sept. 15, 2023

7.125% Notes due 2024

Dec. 12, 2013

$2,500 million¥252,550 million

7.13%

June 15, 2024

Sprint Corporation4

Notes:
2. The cash outflow amount, fixed by the currency swap contract designated as a cash flow hedge, at the time of redemption, is
described in JPY.
3. The interest rate, after considering the impact of converting the fixed interest rate in foreign currency into a fixed interest rate in
JPY by the currency swap contract, designated as a cash flow hedge, is described.
4. These corporate bonds were issued after the acquisition of Sprint.

52

SoftBank Corp. Consolidated Financial Report
For the nine-month period ended December 31, 2014

5. Corporate bonds issued for the nine-month period ended December 31, 2014 are as follows:

Date of issuanceTotal amountof issuanceInterest
rate

Date of maturity

45th Unsecured Straight
Corporate Bond

May 30, 2014

¥300,000 million

1.45%

May 30, 201946th Unsecured Straight
Corporate Bond

Sept. 12, 2014

¥400,000 million

1.26%

Sept. 12, 2019

1st Unsecured SubordinatedCorporate Bond

Dec. 19, 2014

¥400,000 million

2.50%

Dec. 17, 2021

Dec. 19, 2014$300 million¥34,317 million

4.00%

Dec. 17, 2019

Company name / Name of bonds
SoftBank Corp.

Sprint Communications, Inc.6
Export Development Canada
Facility (Tranche 3)

Notes:
6. Sprint Communications, Inc. is a subsidiary of Sprint.

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

Nine-month period
ended
December 31, 2013
(971,600)(483,528)(180,032)(43,762)(1,678,922)

Repayment of long-term borrowings
Redemption of corporate bonds1,3
Payment of lease obligations
Payment of installment payables
Total

Nine-month period
ended
December 31, 2014
(270,611)(63,446)(222,227)(42,297)(598,581)

Notes:
1. Corporate bonds redeemed for the nine-month period ended December 31, 2013 are as follows:

Company name / Name of bonds

Date of issuance

Amount of redemption

Interest
rate

Date of redemption

June 2, 2010

¥25,000 million

1.17%

May 31, 2013

Sept. 17, 2010

¥130,000 million

1.24%

Sept. 17, 2013

SoftBank Corp.
31st Unsecured Straight
Corporate Bond
33rd Unsecured Straight
Corporate Bond
Clearwire Communications LLC2
12% Senior Secured Notes due
2015
12% Second-Priority Secured
Notes due 2017

$2,763 million¥277,997 million$500 million¥50,510 million

Nov. 24, 2009
Dec. 9, 2010

12.00%
12.00%

Sept. 11, 2013 toDec. 1, 2013
Oct. 30, 2013
Dec. 1, 2013

Notes:
2. These corporate bonds were redeemed after the acquisition of Sprint. Clearwire Communications LLC is a subsidiary of Sprint.

53

SoftBank Corp. Consolidated Financial Report
For the nine-month period ended December 31, 2014

3. Major corporate bonds redeemed for the nine-month period ended December 31, 2014 are as follows:

Company name / Name of bonds

Date of issuance

Amount of redemption

Interest
rate

Date of redemption

June 19, 2007

¥14,900 million

4.36%

June 19, 2014

June 10, 2011

¥30,000 million

0.65%

June 10, 2014

April 23, 2007

$181 million¥18,513 million

3.49%

May 1, 2014

SoftBank Corp.
26th Unsecured Straight
Corporate Bond
37th Unsecured Straight
Corporate Bond
iPCS, Inc.4
Second Lien Senior Secured
Floating Rate Notes due 2014

Notes:
4. iPCS, Inc. is a subsidiary of Sprint.

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

U.S. dollars

As ofMarch 31, 2014102.92

As ofDecember 31, 2014
120.55(2) Average rate for the quarter
For the nine-month period ended December 31, 2013

U.S. dollars

Three-month period
endedJune 30, 2013
97.94

Three-month period
ended
September 30, 2013
98.20

(yen)
Three-month period
ended
December 31, 2013
101.02Three-month period
ended
September 30, 2014
104.35(yen)
Three-month period
ended
December 31, 2014
114.39For the nine-month period ended December 31, 2014

U.S. dollars

Three-month period
endedJune 30, 2014
102.14

10. Equity(1) Additional paid-in capital
For the nine-month period ended December 31, 2013
In connection with the consolidation of Supercell, the Company acquired preferred stocks of Supercell andoptions (“conversion options”) to convert the preferred stocks to common stocks. The fair value of ¥10,323
million for the preferred stocks and the conversion options is deducted from additional paid-in capital as“Acquisition of options to convert to subsidiaries’ common stocks.” The details are described in “(4) Supercell”
in “Note 4. Business combinations.”

54

SoftBank Corp. Consolidated Financial Report
For the nine-month period ended December 31, 2014

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

As ofMarch 31, 2014

As ofDecember 31, 2014

Available-for-sale financial assets

14,122

17,941

Cash flow hedges
Exchange differences on translating
foreign operations(19,942)(10,727)

175,670

574,645

169,850

581,859

Nine-month period
ended
December 31, 2013-

Nine-month period
ended
December 31, 2014
18,726(5,338)10(5,328)(29,509)(18,751)
1,553(27,981)Total

11. Other operating loss
The components of other operating loss are as follows:(Millions of yen)

Gain on partial pension settlement1
Severance costs associated with reduction inwork force of Sprint
Provision for unprofitable contract2
Other
Total

Notes:
1. Sprint made an amendment associated with the defined benefit pension plan to offer certain terminated participants , who
had not begun to receive plan benefits, the opportunity to receive their benefits as an immediate lump sum distribution.
This is the gain arising from the settlement.
2. Loss was recognized in the Fixed-line Telecommunications segment due to the provision made by SoftBank Telecom
Corp. for the excess of expected future cost of delivery for a contracted communication service over its contracted
amount.

12. Finance cost
The components of finance cost are as follows:(Millions of yen)

Nine-month period
ended
December 31, 2013
(186,632)Interest expense

Nine-month period
ended
December 31, 2014
(264,168)

13. Dilution gain from changes in equity interest
For the nine-month period ended December 31, 2014
The Company recorded dilution gain from changes in equity interest of ¥599,668 million related to Alibaba, which is anassociate of the Company. This is mainly due to the issuance of new shares by Alibaba and the conversion ofConvertible Preference Shares issued by Alibaba into common stock in connection with its listing on the New York
Stock Exchange on September 19, 2014.

55

SoftBank Corp. Consolidated Financial Report
For the nine-month period ended December 31, 2014

14. Other non-operating income and loss
The components of other non-operating income and loss are as follows:(Millions of yen)Interest income1
Derivative loss1,2Gain and loss on sales of securities
Gain on sales of equity method associates
Impairment loss on equity method associates3
Gain from remeasurement relating to applying
equity method4
Other
Total

Nine-month period
ended
December 31, 2013
20,044(15,057)
11,56526,701-

Nine-month period
ended
December 31, 2014
2,873
(1,195)(2,143)
1,379(32,339)-

6,249(4,269)38,984

6,674(18,502)

Notes:
1. Stock acquisition rights in the convertible bonds issued by Sprint Nextel Corporation and undertaken by Starburst II on
October 22, 2012, were reported at fair value as a derivative, being bifurcated from the host contracts as they are classified
as embedded derivatives and were recorded in “Other financial assets” in the consolidated statements of financial position.
As the Company exercised the relevant stock acquisition right and the Company derecognized the derivatives, a derivativeloss of ¥16,356 million was recorded during the nine-month period ended December 31, 2013.
With regard to the host contract (the bonds), the amount of payment less the fair value of the embedded derivative at
inception of the bond was recorded in the consolidated statements of financial position at inception. This deduction
amount is accreted using the effective interest method with corresponding adjustments to interest income. Initially, theexpected remaining accretion period for the bond discount was seven years based on the contract term of the bond.
However, based on the approval for the acquisition at the shareholders’ meeting of Sprint on June 25, 2013, the Company
changed the estimate of the expected remaining term to the completion of the acquisition. During the nine-month period
ended December 31, 2013, the Company recognized interest income of ¥16,219 million. There was an increase of interest
income of ¥15,568 million from the reflection of this change in the expected remaining term of the bond.
2. Of the foreign currency forward contract totaling $22.0 billion which was related to the acquisition of Sprint, with regard to$5.0 billion that did not meet the criteria for hedge accounting, a derivative loss of ¥13,186 million was recorded for thenine-month period ended December 31, 2013. Hedge accounting was applied to $17.0 billion as a cash flow hedge. Fairvalue of ¥311,659 million of hedge instruments on the acquisition date was deducted from the initial amount of goodwill
which was recognized upon the acquisition.
3.The Company recorded impairment loss of ¥32,339 million with regard to the equity method associate for the nine-month
period ended December 31, 2014 as the fair value had been declining for a prolonged period and the carrying amount was
reduced to the recoverable amount.
4. Due to the increase in percentage of voting rights, the equity method is newly applied to the investment in an associate andthe gain is arising from remeasurement of the interest already held by the Company at the time of the equity method
application, based on the fair value on the date of the equity method application.

56

SoftBank Corp. Consolidated Financial Report
For the nine-month period ended December 31, 201415. Supplemental information to the condensed interim consolidated statements of cash flows(1) Scope of purchase of property, plant and equipment and intangible assets“Purchase of property, plant and equipment and intangible assets” includes cash outflows from purchasing
long-term prepaid expenses that are included in “Other non-current assets” in the condensed interim
consolidated statements of financial position.
(2) Presentation of cash flow regarding finance leases
Once the Company purchases telecommunications equipment for the purpose of assembly, installation andinspection, the Company sells the equipment to lease companies for sale and leaseback purposes. The leased
asset and lease obligation are recorded in the condensed interim consolidated statements of financial position.
The cash outflows from the purchase of the equipment from vendors are included in “Purchase of property, plantand equipment and intangible assets" under cash flows from investing activities, and the cash inflows from thesale of the equipment to lease companies are included in “Proceeds from long-term interest-bearing debt" undercash flows from financing activities.
(3) Proceeds from settlement of foreign currency forward contract for acquisition of control of subsidiaries
For the nine-month period ended December 31, 2013
The proceeds are from the settlement of a foreign currency forward contract of $18.5 billion with regard toconsolidation of Sprint.

57