SOFTBANK CORP.
CONSOLIDATED FINANCIAL REPORTFor the six-month period ended September 30, 2008
Tokyo, October 29, 2008

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

Net sales

Operating income

Ordinary income

Net income

Amount%Amount%Amount%Amount%Six-month period ended
September 30, 2008

¥1,328,998-¥180,000-¥117,315-¥41,115-

Six-month period ended
September 30, 2007

¥1,364,745

21.8¥167,74649.0¥111,165

77.3¥46,462221.8

Net income
per share－basic(yen)

Net income
per share－diluted(yen)

Six-month period ended
September 30, 2008

¥38.04¥36.20Six-month period ended
September 30, 2007¥43.99¥41.43(2) Financial Condition(Millions of yen; amounts less than one million yen are omitted.)

Total assets

Total equity

Equity ratio (%)

Shareholders' equity
per share (yen)As of September 30, 2008

¥4,427,011¥862,478

9.4¥382.96

As of March 31, 2008

¥4,558,901¥848,725

8.4¥355.15

Note: Shareholders’equity (consolidated)
As of September 30, 2008:
As of March 31, 2008:¥414,118million¥383,742 million

2. Dividends(Record date)

FY 2008
FY2009FY 2009(Forecasted)

First quarter

Dividends per share
Third quarter

Second quarter

Fourth quarter

Total

(yen)

(yen)

(yen)

(yen)

(yen)

－

0.00
0.00

－

2.50

2.50

－

2.50

2.50

－

1

3.

Forecasts on the consolidated operation results for the fiscal year ending in March 2009 (April 1, 2008 – March 31, 2009)(Percentages are shown as year-on-year changes)(Millions of yen)

Operating income
Full financial year

¥ 340,000

4.8 (%)

Revision of forecasts on the consolidated operation results: Yes

4. Others(1) Significant Changes in Scope of Consolidation (Changes in Scope of Consolidation of Specified Subsidiaries):None(2) Application of simple accounting methods or special accounting methods for preparation for the consolidated financial
statements:
None(3) Changes in accounting principles, procedures, disclosure methods, etc., used in the presentation of the consolidated financial
statements (Changes described in “(5) Basis of Presentation of Quarterly Consolidated Financial Statements”)[1] Changes due to revisions in accounting standards: Yes[2] Changes other than those in [1]: Yes
Note: Please see “Qualitative Information / Financial Statements 5. Others” in details on page 22.
(4) Number of shares issued (Common stock)[1] Number of shares issued (including treasury stock):
As of September 30, 2008:
As of March 31, 2008:

1,080,828,378 shares
1,080,664,578 shares[2] Number of treasury stock:
As of September 30, 2008:
As of March 31, 2008:

166,212 shares
163,811 shares[3] Weighted average number of common stock :As of September 30, 2008:
As of September 30, 2007:

1,080,587,999 shares
1,056,162,870 shares* Notes to forecasts on the consolidated operating results and another item
1. The forecast figures are estimated based on the information which the company is able to obtain at present point and the assumption which isdeemed to be reasonable. However, actual results may be different due to various factors.
2. “Accounting Standard for Quarterly Financial Reporting and its Implementation Guidance ” (ASBJ Statement No.12 issued on March 14, 2007)
and “Guidance on Accounting Standard for Quarterly Financial Reporting ” (ASBJ Guidance No.14 issued on March14, 2007) were applied forthe period ended September 30, 2008. The consolidated financial statements for the period ended September 30, 2008 were prepared byfollowing “Regulations for Quarterly Consolidated Financial Statements”.

2

SOFTBANK CORP. CONSOLIDATED FINANCIAL REPORTFor the six-month period ended September 30, 2008

Interim Period of the Fiscal Year Ending March 2009 (April 1, 2008, to September 30, 2008)
Consolidated Financial Highlights
Consolidated Statements of Income

Record high operating income on interim basis• Consolidated net sales were ¥1,328.9 billion (2.6% decrease year-on-year).
The principal reason was a 20% year-on-year decline in handset sales.
• Record high operating income of ¥180.0 billion (7.3% increase year-on-year).
In addition to favorable profit growth at Yahoo Japan Corporation, contributions were made by continued cost reductions at
SOFTBANK TELECOM Corp. and SOFTBANK BB. Corp.
• Ordinary income was ¥117.3 billion (5.5% increase year-on-year).
• Net income was ¥41.1 billion (11.5% decrease year-on-year).

Segment Information

Other than Mobile Communications, higher profits were recorded in all segments• Net sales in the Mobile Communications segment were ¥773.9 billion (5.0% decrease year-on-year).
• Operating income in the Mobile Communications segment was ¥88.1 billion (6.4% decrease year-on-year).
• Net sales in the Broadband Infrastructure segment were ¥120.0 billion (7.5% decrease year-on-year).
• Operating income in the Broadband Infrastructure segment was ¥22.2 billion (17.3% increase year-on-year).
• Net sales in the Fixed-line Telecommunications segment were ¥178.4 billion (1.7% decrease year-on-year).
• Operating income in the Fixed-line Telecommunications segment was ¥5.5 billion (15.9-times increase year-on-year).
• Net sales in the Internet Culture segment were ¥125.5 billion (13.7% increase year-on-year).
• Operating income in the Internet Culture segment was ¥61.1 billion (11.4% increase year-on-year).

Consolidated Balance Sheets / Consolidated Statements of Cash Flows

Achieve ¥176.7 billion of improvement in operating cash flow
• Total assets were ¥4,427.0 billion (¥131.8 billion decline from the end of the previous fiscal year).
The principal reasons were a decline in cash and deposits due to the acquisition of treasury stock by Yahoo Japan
Corporation and a decline in investment securities of Yahoo! Inc etc. accompanying worsening market conditions.
• Total liabilities were ¥3,564.5 billion (¥145.6 billion decline from the end of the previous fiscal year).
Progress was made in reducing payables, such as accounts payable-other and accounts payable-trade, and interest-bearing
debt.
• Total equity was ¥862.4 billion (¥13.7 billion increase from the end of the previous fiscal year).
• Shareholders’ equity ratio was 9.4% (1.0 percentage point improvement from the end of the previous fiscal year).
• Net cash provided by operating activities was ¥177.2 billion (compared to ¥0.4 billion provided in the same period of theprevious fiscal year).
Due to an increase in repayments by subscribers on the installment plan, receivables trade increased by ¥2.8 billion, while anincrease of ¥144.2 billion was recorded in the same period of the previous fiscal year.
¥141.3 billion year-on-year.

3

This resulted in an improvement of

SOFTBANK CORP. CONSOLIDATED FINANCIAL REPORTFor the six-month period ended September 30, 2008

• Net cash used in investing activities was ¥165.1 billion (compared to ¥227.2 billion used in investing activities in the same
period of the previous fiscal year).
• Net cash used in financing activities was ¥81.9 billion (compared to ¥303.5 billion provided by financing activities in thesame period of the previous fiscal year).
Mobile Communications Segment: Key Indicators

No. 1 in monthly net additions in subscribers for 17 consecutive months• Total number of subscribers as of the end of September 2008 was 19.63 million (1.04 million increase from the end of theprevious fiscal year).
• No. 1 in monthly net additions for 17 consecutive months through September 2008.
• 3G subscription ratio as of the end of September 2008 was 83.1% (7.5 percentage point increase from the end of the previous
fiscal year).
• Total ARPU*1 in the second quarter was ¥4,170 (a decline of ¥140 from the end of the previous fiscal year and a decline of¥10 from the first quarter).
• Voice ARPU in the second quarter was ¥2,460 (a decline of ¥250 from the end of the previous fiscal year and a decline of¥70 from the first quarter).
• Data ARPU in the second quarter was ¥1,710 (an increase of ¥110 from the end of the previous fiscal year and an increase of¥60 from the first quarter).
• The churn rate for the second quarter was 0.98% (0.21 percentage point improvement from the end of the previous fiscal
year).
• The upgrade rate for the second quarter was 1.91% (about level with the fourth quarter of the previous fiscal year).
*1. Average Revenue Per User

4

SOFTBANK CORP. CONSOLIDATED FINANCIAL REPORTFor the six-month period ended September 30, 2008

Second Quarter of the Fiscal Year Ending March 2009 (July 1, 2008, to September 30, 2008)
Consolidated Financial Highlights
Consolidated Statements of Income

Record high operating income on quarterly basis• Consolidated net sales were ¥681.7 billion (2.8% decrease year-on-year).
• Operating income was ¥94.9 billion (6.6% increase year-on-year), a record high for quarterly operating income.
• Ordinary income was ¥63.0 billion (5.1% increase year-on-year).
• Net income was ¥21.7 billion (1.9% increase year-on-year).
Segment Information

Other than Mobile Communications, higher profits were recorded in all segments• Net sales in the Mobile Communications segment were ¥401.3 billion (5.1% decrease year-on-year).
• Operating income in the Mobile Communications segment was ¥43.8 billion (13.4% decrease year-on-year).
• Net sales in the Broadband Infrastructure segment were ¥59.9 billion (6.5% decrease year-on-year).
• Operating income in the Broadband Infrastructure segment was ¥11.7 billion (14.2% increase year-on-year).
• Net sales in the Fixed-line Telecommunications segment were ¥90.0 billion (1.1% decrease year-on-year).
• Operating income in the Fixed-line Telecommunications segment was ¥4.7 billion (10.3-times increase year-on-year).
• Net sales in the Internet Culture segment were ¥63.2 billion (9.8% increase year-on-year).
• Operating income in the Internet Culture segment was ¥30.6 billion (10.4% increase year-on-year).

The consolidated financial statements for the period ended September 30, 2008 were prepared following theRegulations for Quarterly Consolidated Financial Statements.

Therefore, the financial results of the same period of

the previous fiscal year and year-on-year comparisons have been included for reference purposes.

5SOFTBANK CORP. CONSOLIDATED FINANCIAL REPORTFor the six-month period ended September 30, 2008

Qualitative Information / Financial Statements
1. Qualitative Information on Consolidated Results of Operations<<Summary of Results of Operations>>
Net sales¥1,328,998 million (2.6% decrease year-on-year)

Operating income¥180,000 million (7.3% increase year-on-year)

Ordinary income¥117,315 million (5. 5% increase year-on-year)

Net income¥41,115 million (11.5% decrease year-on-year)<Overview of results for the interim period ended September 30, 2008 (six-month period from April 1, 2008 to
September 30, 2008)>
Net sales for the interim period (six-month period ended September 30, 2008; hereinafter ‘the interim period’) totaled¥1,328,998 million, and operating income came to ¥180,000 million, the highest level of operating income since the
SOFTBANK Group (hereinafter ‘the Group’) was established. Net sales declined in comparison to the corresponding
interim period in the previous fiscal year (six-month period ended September 30, 2007; hereinafter ‘year-on-year’),
primarily because of a decline in handset sales in the Mobile Communications segment. Even though the operating incomein the Mobile Communications segment declined, all the other businesses recorded higher operating income. As a result,overall operating income increased year-on-year.
<Quarterly Results>(Millions of yen)
Fiscal year ended March 31, 2008

Net sales
OperatingincomeOrdinary
incomeNet income

Fiscal year ending March 31, 2009

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

663,084

701,660

694,020

717,402647,255

681,742——

78,74689,00092,44164,09885,086

94,913——51,15460,010120,833

26,61554,272

63,043——25,13021,331

46,734

15,427

19,36821,747——(1) Net Sales
Net sales declined ¥35,747 million to ¥1,328,998 million, or 2.6% year-on-year. This decrease was primarily the result ofa ¥40,548 million decline in net sales in the Mobile Communications segment on lower handset sales.

6

SOFTBANK CORP. CONSOLIDATED FINANCIAL REPORTFor the six-month period ended September 30, 2008

(2) Operating Income
Operating income was ¥180,000 million, an increase of ¥12,253 million, or 7.3%, year-on-year.

This was due to steadyincome growth in Yahoo Japan Corporation, and continued efforts toward cutting costs in SOFTBANK TELECOM Corp.
(hereinafter ‘SOFTBANK TELECOM’) and SOFTBANK BB Corp. (hereinafter ‘SOFTBANK BB’) leading to increases inoperating income in the Internet Culture segment, the Broadband Infrastructure segment, and the Fixed-Line
Telecommunications segment. The Internet Culture segment recorded an increase of 11.4%, to ¥6,273 million, theFixed-Line Telecommunications segment recorded an increase of 15.9-times to ¥5,208 million and the Broadband
Infrastructure segment recorded an increase of 17.3%, to ¥3,278 million year-on-year. These performances were theprincipal reason for the overall increase in operating income.
The cost of sales for the interim period was ¥690,137 million, down ¥28,726 million, or 4.0% year-on-year. Thisdecline was due primarily to lower cost of goods sold for handsets in the Mobile Communications segment. Selling,
general and administrative expenses came to ¥458,859 million, a decrease of ¥19,274 million, or 4.0%, year-on-year. Thisdecline was primarily attributable to lower subscriber retaining costs, such as commissions on handset upgrades etc.

(3) Non-operating Income
Non-operating income was ¥4,667 million, a decrease of ¥5,518 million, or 54.2%, year-on-year.

Foreign exchange gain,

net decreased by ¥1,988 million. In addition, in the same period of the previous fiscal year, equity in earnings of affiliatedcompanies was ¥3,136 million, but in this interim period, equity in loss of affiliated companies was ¥2,421 million, which
was recorded as a non-operating expense.
(4) Non-operating Expenses
Non-operating expenses were ¥67,352 million, an increase of ¥585 million, or 0.9% year-on-year.

This rise wasprincipally due to interest expense of ¥57,061 million, an increase of ¥1,686 million year-on-year.

(5) Special Income
Special income totaled ¥6,215 million. This was mainly due to the recognition of ¥2,519 million from gain on sale ofinvestment securities and ¥2,353 million from dilution gain from changes in equity interest.

(6) Special Loss
Special loss came to ¥8,315 million. This was mainly due to the recognition of ¥3,175 million of unrealized loss on
valuation of investments and loss on sale of investments at subsidiaries in the U.S., net, and ¥3,123 million of valuation loss
on investment securities.

(7) Income Taxes and Others
Current income taxes totaled ¥34,432 million, deferred income taxes came to ¥17,401 million, and ¥22,265 million wasrecorded as minority interests in net income.

7

SOFTBANK CORP. CONSOLIDATED FINANCIAL REPORTFor the six-month period ended September 30, 2008

Results by business segment are as follows:[Mobile Communications]<<Summary of Segment Results>>
Net sales¥773,961 million(5.0% decrease year-on-year)

Operating income¥88,164 million(6.4% decrease year-on-year)

Net subscriber additions totaled 1,046,900 in the first half of the fiscal year. No. 1 in monthly net additions for 17
consecutive months through September 2008.
Total subscribers reached 19.63 million, 3G subscribers reached 16.32 million.

<Analysis of Results>
Net sales were ¥773,961 million, down ¥40,548 million, or 5.0%, year-on-year. Operating income decreased by ¥6,055
million, or 6.4% year-on-year, to ¥88,164 million.

The decrease in net sales was primarily a reflection of a decline inhandset sales at SOFTBANK MOBILE Corp. (hereinafter ‘SOFTBANK MOBILE’), the segment’s core company.
Commissions on handset upgrades declined, but depreciation and amortization etc. increased.

As a result, operating

income decreased.
<Quarterly Results>(Millions of yen)
Fiscal year ended March 31, 2008

Fiscal year ending March 31, 2009

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Sales

391,668

422,841

406,081410,260

372,585

401,375——

Operatingincome43,52850,69153,76026,58944,27343,890——<Number of Mobile Phone Subscribers>
The iPhoneTM 3G, put on sale on July 11 2008, contributed to the acquisition of new subscribers, and SOFTBANK MOBILE
recorded the industry’s highest monthly net additions in subscribers (new subscribers minus cancellations) for 17
consecutive months through September 2008. The number of SOFTBANK MOBILE subscribers totaled 19,633,200*2 asof the end of the interim period, an increase of 1,046,900 subscribers from the end of the previous fiscal year.
share rose 1.5 percentage points, to 18.7%.

MarketIn addition, the number of applications for White Plan which has a basic

monthly charge of ¥980 (including tax) exceeded 14 million in July 2008. The number of 3G subscribers exceeded 16
million, representing more than 80% of total subscribers.

SOFTBANK MOBILE continues working to promote thetransition to 3G. SOFTBANK MOBILE’S 2G service, including its prepaid service, will be terminated by March 31, 2010.

8

SOFTBANK CORP. CONSOLIDATED FINANCIAL REPORTFor the six-month period ended September 30, 2008

(Thousands of lines)
Fiscal year ended March 31, 2008

Fiscal year ending March 31, 2009

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Net additions

530.8

612.0

561.0

972.7

525.5

521.4

—

—

Total

16,440.5

17,052.5

17,613.5

18,586.2

19,111.7

19,633.2——*2. The total number of subscribers for SOFTBANK MOBILE includes communication module service subscribers. The
number of communication module service subscribers at the end of the interim period was 32,500.
<Churn Rate and Upgrade Rate>
As in the first quarter, the churn rate for the second quarter was below 1%. The churn rate was 0.98% for the second
quarter, an improvement of 0.21 percentage points from the end of the previous fiscal year. The upgrade rate for thesecond quarter was 1.91%, maintaining the same level compared to the end of the previous fiscal year.
(% per month)Fiscal year ended March 31, 2008
Q1

Q2

Q3

Fiscal year ending March 31, 2009
Q4

Q1

Q2

Q3

Q4

Churn rate

1.46

1.42

1.21

1.19

0.98

0.98

—

—

(3G only)*3

1.07

1.05

0.88

0.85

0.72

0.76

—

—

Upgrade rate

2.25

2.67

2.00

1.93

1.27

1.91

—

—

*3. Excludes the 3G Prepaid Service.

<ARPU and Average Acquisition Commission per User>
Total ARPU in the second quarter was ¥4,170, a decline of ¥140 from the end of the previous fiscal year. This decline intotal ARPU was a reflection of the special discount for subscribers to New Super Bonus and the growth in the number ofsubscribers to White Plan, which has a basic monthly charge of ¥980 (including tax). Total ARPU in the second quarter
was down ¥10 from the first quarter, marking a substantial improvement in the scale of the decline.

On the other hand,data ARPU in the second quarter rose ¥110 from the end of the previous fiscal year to ¥1,710, and accounted for 41.1% of
total ARPU. This ratio continues to increase.
The average acquisition commission per user during the second quarter was ¥35,500.

9SOFTBANK CORP. CONSOLIDATED FINANCIAL REPORTFor the six-month period ended September 30, 2008

(Yen per month)Fiscal year ended March 31, 2008

Fiscal year ending March 31, 2009

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Total

5,000

4,800

4,520

4,310

4,180

4,170

—

—

(Voice)

3,590

3,340

3,040

2,710

2,530

2,460

—

—

(Data)

1,410

1,470

1,490

1,600

1,650

1,710

—

—

[Broadband Infrastructure]<<Summary of Segment Results>>
Net sales¥120,038 million(7.5% decrease year-on-year)

Operating income¥22,265 million(17.3% increase year-on-year)

Total installed lines for Yahoo! BB ADSL: 4,551,000 (at the end of September 2008).
Progress was made in improving the operating margin by reducing expenses.

<Analysis of Results>
Net sales were ¥120,038 million, down ¥9,780 million, or 7.5%, year-on-year.

Operating income was ¥22,265 million, up¥3,278 million, or 17.3%, year-on-year. Revenue from the ADSL business of core company SOFTBANK BB is trending
lower on declines in both total installed lines and ARPU, but the trend of profit growth continues because of lower
depreciation and leasing expenses etc. for telecommunications equipment.
<Quarterly Results>(Millions of yen)
Fiscal year ended March 31, 2008

Fiscal year ending March 31, 2009

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Sales

65,74764,07264,34063,90860,12759,911——

Operatingincome8,665

10,32011,3099,404

10,475

11,789——<Overview of Operations>
The number of installed lines for Yahoo! BB ADSL, the comprehensive broadband service provided by SOFTBANK BB,
totaled 4,551,000 lines at the end of the interim period, and ARPU on a customer payment basis for the second quarter was¥4,279.
SOFTBANK BB and SOFTBANK MOBILE launched the White Call 24 discount service from June 2008. This
service provides free domestic voice calls between subscribers of the Group’s BB Phone (050) IP telephony service and
SoftBank mobile phones (White Plan). This is increasing the Group’s competitiveness by creating synergies between thetwo companies, including cross-selling across the two companies’ sales channels.

10

SOFTBANK CORP. CONSOLIDATED FINANCIAL REPORTFor the six-month period ended September 30, 2008

[Fixed-Line Telecommunications]<<Summary of Segment Results>>
Net sales¥178,458 million

Operating income¥5,557 million(1.7% decrease year-on-year)(15.9-times increase year-on-year)

Total installed lines for OTOKU Line: 1,498,000 (at the end of September 2008).
As a result of efforts to reduce fixed costs, operating income increased 15.9-times year-on-year.

<Analysis of Results>
Net sales were ¥178,458 million, down ¥3,014 million, or 1.7%, year-on-year.
an increase of 15.9-times year-on-year.

Operating income totaled ¥5,557 million,

At core company SOFTBANK TELECOM, revenue from the OTOKU Line directconnection fixed-line voice service continued to increase, but revenue from such existing voice services as MY LINE
continued to decline. However, through initiatives targeting increased management efficiency, such as continued fixed cost
reductions, operating profitability has been maintained since the second quarter of the previous fiscal year.
<Quarterly Results>(Millions of yen)
Fiscal year ended March 31, 2008

Fiscal year ending March 31, 2009

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Sales

90,486

90,98689,97999,28888,45390,005——

Operatingincome (loss)

(111)

460

1,375

1,615

798

4,759

—

—

<Overview of Operations>
SOFTBANK TELECOM continues to utilize its core OTOKU Line direct connection fixed-line voice service to expand its
corporate customer base. The number of OTOKU Line lines installed is increasing steadily.

The number of lines at theend of the interim period stood at 1,498,000, for an increase of 97,000 from the end of the previous fiscal year. Corporate
customers constituted 74.2% of the total number of lines, and this figure continues to rise.
In June 2008, SOFTBANK TELECOM launched the White Line 24 discount service to enhance synergies with the
Mobile Communications segment and to further strengthen the corporate business. This service provides free domestic
voice calls between subscribers of SOFTBANK TELECOM’s OTOKU Line service and SoftBank mobile phones (WhitePlan).

11

SOFTBANK CORP. CONSOLIDATED FINANCIAL REPORTFor the six-month period ended September 30, 2008

[Internet Culture]<<Summary of Segment Results>>
Net sales¥125,586 million(13.7% increase year-on-year)

Operating income¥61,188 million(11.4% increase year-on-year)<Analysis of Results>
Net sales increased by ¥15,166 million year-on-year, or 13.7%, to ¥125,586 million. Operating income increased by ¥6,273
million, or 11.4%, to ¥61,188 million.
<Quarterly Results>(Millions of yen)
Fiscal year ended March 31, 2008

Fiscal year ending March 31, 2009

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Sales

52,796

57,623

66,50570,71762,326

63,259——Operatingincome27,14827,76628,864

31,45730,54230,645——<Overview of Operations>
In the advertising business of Yahoo Japan Corporation, the core company in the segment, display advertising sales rose solidly,with sales of high-value-added advertising products, such as behavioral targeting and demographic targeting products, surging
year-on-year. Due to the pursuit of an “open” strategy, use of paid search advertising system by non Yahoo Japan Corporationgroup companies increased, resulting in favorable growth in paid search advertising sales.
Efforts in Yahoo! Shopping and Yahoo! Auctions to increase the number of merchant stores were continued during theinterim period. As a result, at the end of the interim period, the number of merchant stores registered on Yahoo! Shopping andYahoo! Auctions totaled 32,652, expanding by 3,216 stores year-on-year. In addition, tenant and commission fees for Yahoo!
Shopping and Yahoo! Auctions expanded favorably. Efforts to improve added value for Yahoo! Premium membership IDs
resulted in the number of IDs totaled 7.18 million during the interim period. Hence, net sales have increased steadily.
Commencing in September, Yahoo Japan Corporation began introducing the interest-linked advertising service Interest
Match™, which is the world’s first advertising service of its kind.

12

SOFTBANK CORP. CONSOLIDATED FINANCIAL REPORTFor the six-month period ended September 30, 2008

[e-Commerce]<<Summary of Segment Results>>
Net sales¥127,981 million(2.0% increase year-on-year)¥2,747 million(30.8% increase year-on-year)

Operating income<Analysis of Results>
Net sales were ¥127,981 million, up ¥2,507 million, or 2.0%, year-on-year. Operating income was ¥2,747 million, up ¥646
million, or 30.8%, year-on-year.
<Quarterly Results>(Millions of yen)
Fiscal year ended March 31, 2008

Fiscal year ending March 31, 2009

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Sales

61,66063,812

69,63475,61562,45965,522——

Operatingincome

1,167

933

809

246

1,009

1,737

—

—

<Overview of Operations>Core company SOFTBANK BB’s commerce & service division posted strong sales of IT equipment for corporate customers,
including servers and client PCs, and of network equipment.

The lineup of SoftBank SELECTION mobile phone

accessories, launched in November 2007, was expanded, and the number of stores handling these products increased.
SoftBank SELECTION began to contribute to earnings accordingly. In addition, sales of high-margin hardware to mass
appliance retailers also increased.
SOFTBANK BB will continue to pursue additional synergies with the Group’s telecommunications companies as itstrengthens its sales of mobile phone accessories and corporate business.

13

SOFTBANK CORP. CONSOLIDATED FINANCIAL REPORTFor the six-month period ended September 30, 2008

[Others]<Analysis of Results>
Net sales decreased by ¥5,771 million year-on-year, or 11.1%, to ¥46,008 million.

Operating income was ¥2,624 million,

compared to operating loss of ¥650 million in the same period of previous fiscal year.
This segment includes the Technology Services business (SOFTBANK TECHNOLOGY CORP.), the Media &Marketing business (mainly SOFTBANK Creative Corp. and ITmedia Inc.), the Overseas Funds business, and Other
businesses (mainly TV Bank Corporation and Fukuoka Softbank Hawks Corp.).
Broadmedia Corporation, which belonged to the Broadmedia segment that was previously included in this segment,changed from a consolidated subsidiary to an equity-method affiliate as the result of a capital increase via third-party
allotment of shares implemented on May 16, 2008. The Broadmedia segment was therefore disbanded in the first quarter.
<Quarterly Results>(Millions of yen)
Fiscal year ended March 31, 2008

Fiscal year ending March 31, 2009

Q1

Q2

Q3

Q4

Q1

Q2

Sales

24,871

26,90723,18424,90921,81824,189——Operatingincome (loss)

(689)

38

(2,617)(1,852)

(758)

3,383

—

—

14

Q3

Q4

SOFTBANK CORP. CONSOLIDATED FINANCIAL REPORTFor the six-month period ended September 30, 2008

(Reference: Quarterly Results)
Net sales for the second quarter (three-month period from July 1, 2008, to September 30, 2008) totaled ¥681,742 million, adecrease of ¥19,918 million, or 2.8%, year-on-year. Operating income was ¥94,913 million, an increase of ¥5,913 million, or6.6%, year-on-year. Ordinary income was ¥63,043 million, an increase of ¥3,032 million, or 5.1%, year-on-year.

Net

income was ¥21,747 million, an increase of ¥415 million, or 1.9%, year-on-year.
Results by business segment are as follows:[Mobile Communications]
Net sales were ¥401,375 million, a decrease of ¥21,466 million, or 5.1%, year-on-year. Operating income decreased by¥6,800 million, or 13.4%, to ¥43,890 million. The principal reason was a decline in handset sales at SOFTBANK MOBILE.
In addition, commissions on handset upgrades declined, but depreciation and amortization etc. increased. As a result,operating income decreased.

[Broadband Infrastructure]
Net sales were ¥59,911 million, a decrease of ¥4,160 million, or 6.5%, year-on-year. Operating income was ¥11,789 million,
an increase of ¥1,469 million, or 14.2%, year-on-year. SOFTBANK BB’s ADSL business is trending lower on declines inboth total installed lines and ARPU, but the trend of profit growth continues because of lower depreciation and leasing
expenses etc. for telecommunications equipment.
[Fixed-line Telecommunications]
Net sales were ¥90,005 million, a decrease of ¥981 million, or 1.1%, year-on-year.

Operating income totaled ¥4,759 million,

an increase of 10.3-times year-on-year. At SOFTBANK TELECOM, the revenue from the OTOKU Line direct connection
fixed-line voice service continued to increase, but the revenue from such existing voice services as MY LINE continued to
decline. However, through initiatives targeting increased management efficiency, such as continued fixed cost reductions, atrend of increasing profits has been maintained.

[Internet Culture]
Net sales were ¥63,259 million, an increase of ¥5,635 million, or 9.8%, year-on-year. Operating income was ¥30,645 million,
an increase of ¥2,878 million, or 10.4%, year-on-year.

[e-Commerce]
Net sales were ¥65,522 million, an increase of ¥1,709 million, or 2.7%, year-on-year. Operating income was ¥1,737 million,
an increase of ¥803 million, or 86.0%, year-on-year.
[Others]
Net sales were ¥24,189 million, a decrease of ¥2,717 million, or 10.1%, year-on-year. Operating income totaled ¥3,383
million (¥38 million in the second quarter of the previous fiscal year).

15

SOFTBANK CORP. CONSOLIDATED FINANCIAL REPORTFor the six-month period ended September 30, 2008

2. Qualitative Information on Consolidated Financial Position<<Summary of the Consolidated Financial Position>>
Total assets¥4,427,011 million(2.9% decrease year-on-year)

Total liabilities¥3,564,533 million(3.9% decrease year-on-year)¥862,478 million(1.6% increase year-on-year)

EquityCash flows from operating activities¥177,206 million provided

Cash flows from investing activities¥165,103 million used

Cash flows from financing activities¥81,943 million used

Balance of cash and cash equivalents¥419,186 million(¥71,080 million decrease from the endof March 2008)

1. Assets, Liabilities and Equity
Assets, liabilities, and equity at the end of the interim period were as follows:(1) Current Assets
Current assets decreased by ¥86,893 million from the end of the previous fiscal year, to ¥1,495,851 million. This decrease wasprincipally due to a decline of ¥72,192 million in cash and deposits as a result of the acquisition of treasury stock by Yahoo
Japan Corporation, and repayment of interest-bearing debt by Yahoo Japan Corporation and SOFTBANK CORP. (hereinafter‘the Company’). In addition, deferred tax assets also decreased by ¥13,955 million.
In the Mobile Communications segment, SOFTBANK MOBILE procured cash by securitizing a portion of the installment
sales receivables resulting from mobile handset installment sales. Total cash procured in the second quarter came to ¥57,278
million, ¥45,343 million during the first quarter (see ‘(2) Major Financing Activities’ on page 19). These procured funds wererecorded as borrowings, and entrusted installment sales receivables were recorded as notes and accounts receivable-trade.
(2) Fixed Assets<Property and Equipment, net>
Property and equipment, net, decreased by ¥20,856 million from the end of the previous fiscal year, to ¥1,008,408 million. Thisdecline was primarily due to depreciation.
<Intangible Assets>
Intangible assets increased by ¥10,481 million from the end of the previous fiscal year, to ¥1,248,790 million. This risestemmed primarily from a ¥14,540 million increase in goodwill that was associated with SOFTBANK TELECOM’s acquisitionof additional shares of SOFTBANK TELECOM PARTNERS in April 2008, making SOFTBANK TELECOM PARTNERS a
consolidated subsidiary of SOFTBANK TELECOM, and from the acquisition of treasury stock by Yahoo Japan Corporation.

16

SOFTBANK CORP. CONSOLIDATED FINANCIAL REPORTFor the six-month period ended September 30, 2008

<Investments and Other Assets>
Investments and other assets decreased by ¥33,871 million from the end of the previous fiscal year, to ¥671,892 million. Thisdecrease was primarily the result of a ¥63,559 million decrease in investment securities associated with a decline in the shareprice of Yahoo! Inc. in the U.S.
(3) Current Liabilities
Current liabilities decreased by ¥14,513 million from the end of the previous fiscal year, to ¥1,226,190 million. Although
short-term borrowings increased by ¥92,025 million and current portion of lease obligations rose by ¥12,815 million, there were
declines of ¥64,501 million in accounts payable-other and accrued expenses, ¥35,503 million in accounts payable-trade, and¥32,540 million in current portion of corporate bonds.
The increase in short-term borrowings consisted primarily of an increase in current portion of long-term debt of ¥25,598
million, procured by SOFTBANK MOBILE via the securitization of installment sales receivables, and increased borrowings by
the Company of ¥63,000 million through the credit facility line.

(4) Long-term Liabilities
Long-term liabilities decreased by ¥131,129 million from the end of the previous fiscal year, to ¥2,338,342 million. Thisdecrease was primarily due to a decline of ¥96,636 million in long-term debt.
The balance of long-term debt procured by SOFTBANK MOBILE through the whole business securitization financing
scheme decreased by ¥37,227 million from the end of the previous fiscal year, to ¥1,239,261 million.
(5) Equity
Equity increased by ¥13,753 million from the end of the previous fiscal year, to ¥862,478 million. While ¥2,701 million in
dividend payments from retained earnings were recorded, net income for the period was ¥41,115 million, and accumulated
deficit improved by ¥38,277 million. The deferred gain on derivatives under hedge accounting improved by ¥28,175 million, to¥16,352 million, but there were decreases of ¥32,604 million in unrealized gain on available-for-sale securities, ¥16,707 million
in minority interests, and ¥3,964 million in foreign currency translation adjustments.

17

SOFTBANK CORP. CONSOLIDATED FINANCIAL REPORTFor the six-month period ended September 30, 2008

2. Cash Flows
During the interim period, net cash provided by operating activities was ¥177,206 million, net cash used in investing activitieswas ¥165,103 million, and net cash used in financing activities was ¥81,943 million. As a result, cash and cash equivalents at
the end of the interim period totaled ¥419,186 million, a decrease of ¥71,080 million from the end of the previous fiscal year.
(1) Cash Flows from Operating Activities
Net cash provided by operating activities was ¥177,206 million. Income before income taxes and minority interests for theinterim period totaled ¥115,215 million.

As non-cash items, depreciation and amortization of ¥115,067 million andamortization of goodwill of ¥30,632 million were recorded. Other adjustment items included interest expense of ¥57,061
million, which was included in income before income taxes and minority interests for the interim period. Operating cash flow
was negatively impacted by a ¥2,855 million increase in receivables-trade and by a ¥41,974 million decrease in payables-trade.
Interest paid was ¥50,658 million, and income taxes paid by Yahoo Japan Corporation and other entities were ¥33,050 million.

(2) Cash Flows from Investing Activities
Net cash used in investing activities was ¥165,103 million.

As a result of capital expenditure, mainly in thetelecommunications segments, purchase of property and equipment and intangibles totaled ¥142,867 million.
marketable and investment securities totaled ¥24,528 million.

Purchases of

In addition, SOFTBANK TELECOM’s acquisition of

additional shares of SOFTBANK TELECOM PARTNERS, making SOFTBANK TELECOM PARTNERS a consolidated
subsidiary of SOFTBANK TELECOM, resulted in an outlay of ¥17,530 million for acquisition of interests in subsidiaries
newly consolidated. In addition, proceeds from sale of marketable and investment securities totaled ¥12,723 million.
As a result, for the interim period, the total of cash flows from operating activities and cash flows from investing activities
was positive, at ¥12,102 million.

(3) Cash Flows from Financing Activities
Net cash used in financing activities was ¥81,943 million. Proceeds from long-term debt were ¥102,621 million, andshort-term borrowings increased ¥60,127 million. Mainly in the Mobile Communications segment, proceeds of ¥55,522
million were recorded from the sale and lease back of equipment newly acquired. However, ¥169,028 million of long-term
debt was repaid, and there was a ¥52,164 million outlay for purchase of treasury stock of subsidiaries in consolidation, mainly
at Yahoo Japan Corporation and other entities. In addition, repayment of lease obligations and redemption of bonds totaled¥36,325 million and ¥35,130 million, respectively.

18

SOFTBANK CORP. CONSOLIDATED FINANCIAL REPORTFor the six-month period ended September 30, 2008

[Reference](1) Major Investing Activities
The major investing activities in the interim period were as follows:
Investee Company

Investor Company

SOFTBANK TELECOM
PARTNERS Corp.

SOFTBANK TELECOM Corp.

Oak Pacific Interactive

SOFTBANK CORP.

Net Cash Outflow

Voting Rights¥17,204 million(*)

100.0%¥10,240 million

14.1%* This is the amount after subtracting ¥8,325 million of cash and cash equivalents and others, which SOFTBANK TELECOM PARTNERS
Corp. held at the acquisition, from acquisition cost of ¥25,530 million.

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

Company Name

Stock buyback by
subsidiaries in
consolidation
Securitization ofreceivables

Yahoo Japan
Corporation

Increase or
decrease of debt
and others

SOFTBANK CORP.

SOFTBANKMOBILE Corp.

SOFTBANKMOBILE Corp.
SOFTBANKTELECOM Corp.
Yahoo Japan
Corporation

Details

Summary

Implementation of the stockbuyback by Yahoo Japan
Corporation
Procurement of funds
totaling ¥45,343 million
accompanying securitizationof mobile phone installment
sales receivables (recorded
as borrowings)
Procurement of funds
totaling ¥57,278 million
accompanying securitizationof mobile phone installment
sales receivables (recorded
as borrowings)
Increase ¥45,000 million(net)

Buyback Period:
June 2, 2008 to July 10, 2008
Total amount of buyback: ¥51,639 million
Procurement date: June 27, 2008
Redemption method:monthly pass-through repayment
Use: capital investment and repayment offunds raised via the whole businesssecuritization financing scheme
Procurement date: September 29, 2008
Redemption method:monthly pass-through repayment
Use: capital investment and repayment offunds raised via the whole businesssecuritization financing scheme
Increase in borrowings by ¥43,000 million(net) and increase in commercial paper by¥2,000 million
Repayment of funds raised via the wholebusiness securitization financing scheme

Decrease ¥37,227 million
Decrease ¥12,000 million
Decrease ¥10,000 million

19

SOFTBANK CORP. CONSOLIDATED FINANCIAL REPORTFor the six-month period ended September 30, 2008

Item

Company Name

Bond redemption

SOFTBANK CORP.

Details

Summary

20th Unsecured StraightBond
21st Unsecured Straight
Bond

Implementation ofcapital investment
through financelease agreements

SOFTBANKMOBILE Corp. etc.

Implementation of capital
expenditure mainly formobile communications
utilizing lease agreements

Date of redemption: June 9, 2008
Aggregate amount of redemption:¥12,500 million
Date of redemption: September 12, 2008
Aggregate amount of redemption:¥20,000 million
Funds procured during this period :¥55,522 million

3. Qualitative Information on Consolidated Earnings Forecasts
As from the interim period ended September 30, 2008 (six-month period from April 1 to September 30, 2008), the Group
discloses the business forecasts on consolidated operating income. The Group expects consolidated operating income of¥340.0 billion for the fiscal year ended March 31, 2009, and ¥420.0 billion for the fiscal year ended March 31, 2010.
In conjunction with the disclosure of consolidated operating income, the Group discloses the forecast on cash flows fromoperating activities, cash flows from investing activities, and free cash flow (the total of cash flows from operating andinvesting activities). Please refer to the following table for the details.
(Billions of yen)
Actual of fiscal year ended

Forecast of fiscal year ending

Forecast of fiscal year ending

March 31, 2008 (FY2007)

March 31, 2009 (FY2008)

March 31, 2010 (FY2009)

324.2

340.0

420.0

158.2

420.0

500.0

(322.4)(280.0)(250.0)(164.2)

140.0

250.0

Operating income
Cash flows fromoperating activities
Cash flows frominvesting activities
Free cash flow

The consolidated net sales are greatly influenced by the type of sales method used for mobile handsets and this makes
forecasting the business results difficult. The Company holds several investment securities and invests in funds which arevulnerable to the market environment, and this makes equity in earnings under the equity method and special income/loss
difficult to estimate.

Therefore business forecasts on consolidated ordinary income and consolidated net income are alsodifficult to disclose at this point.

20

SOFTBANK CORP. CONSOLIDATED FINANCIAL REPORTFor the six-month period ended September 30, 2008

4. The SOFTBANK GroupAs of September 30, 2008, the Group is comprised of the Company (pure holding company) and the following nine businesssegments. The number of consolidated subsidiaries and equity-method companies in each business segment is as follows.

Consolidated
subsidiaries

Equity-method
non-consolidated
subsidiaries andaffiliates

Mobile Communications

6

2

Broadband Infrastructure

43

Fixed-line Telecommunications

4-

Internet Culture

15

19

e-Commerce

7

4

Others(Note 2)

70

49

106

77

Business segments

Total

Main business of segment and name of business

Provision of mobile communication services and sale of mobile
phones accompanying the services etc.
(Core company: SOFTBANK MOBILE Corp.)
Provision of ADSL and fiber-optic high-speed Internet connection
service, IP telephony service, and provision of content etc. (Corecompany: SOFTBANK BB Corp.(Note1))
Provision of fixed-line telecommunications and data center
service etc.
(Core companies: SOFTBANK IDC Corp., SOFTBANKTELECOM Corp. (Note1))
Internet-based advertising operations, portal business andauction business etc.
(Core company: Yahoo Japan Corporation (Note1))
Distribution of PC software and such hardware as PCs andperipherals, enterprise solutions, and diversified e-commercebusinesses, including business transaction platform (B2B) andconsumer-related e-commerce (B2C) etc.
(Core companies: SOFTBANK BB Corp. (Note1) Vector Inc.,
Carview Corporation)
Technology Services, Media & Marketing, Overseas Funds,
and Other businesses(Core companies: SOFTBANK TECHNOLOGY CORP.,SOFTBANK Creative Corp., ITmedia Inc., Fukuoka Softbank
Hawks Marketing Corp.)（Notes）
1. SOFTBANK BB Corp., SOFTBANK TELECOM Corp. and Yahoo Japan Corporation are included in the consolidated
subsidiaries of the Broadband Infrastructure, Fixed-line Telecommunications and Internet Culture segments, respectively,
while SOFTBANK BB Corp., SOFTBANK TELECOM Corp. and Yahoo Japan Corporation operate multiple businesses
and their operating results are allocated to multiple business segments.

2.

Broadmedia Corporation, which belonged to the Broadmedia segment that was previously included in the Others above,changed from a consolidated subsidiary to an equity-method affiliate as the result of a capital increase via third-party
allotment of shares implemented on May 16, 2008. The Broadmedia segment was therefore disbanded in the first quarter.

［Listed Companies］
The following SOFTBANK subsidiaries are listed on domestic stock exchanges as of September 30, 2008:
Company NameYahoo Japan Corporation

Listed ExchangeTokyo Stock Exchange 1st section
Jasdaq Securities Exchange

SOFTBANK TECHNOLOGY CORP.

Tokyo Stock Exchange 1st section

Vector Inc.

Osaka Securities Exchange Hercules

ITmedia Inc.

Tokyo Stock Exchange Mothers

Carview Corporation

Tokyo Stock Exchange Mothers

21

SOFTBANK CORP. CONSOLIDATED FINANCIAL REPORTFor the six-month period ended September 30, 2008

5. Others(1) Significant Changes in Scope of Consolidation (Changes in Scope of Consolidation of Specified Subsidiaries)
There are no significant changes in scope of consolidation as of September 30, 2008.
(2) Application of simple accounting methods or special accounting methods for preparation for the consolidated financial
statements
There are no applicable items.
(3) Changes in accounting principles, procedures, disclosure methods, etc., used in the presentation of the consolidated
financial statements[1] Application of accounting standard for quarterly financial reporting and its implementation guidance“Accounting Standard for Quarterly Financial Reporting and its Implementation Guidance” (ASBJ Statement No.12
issued on March 14, 2007) and “Guidance on Accounting Standard for Quarterly Financial Reporting” (ASBJ Guidance
No.14 issued on March14, 2007) were applied for the period ended September 30, 2008. The consolidated financial
statements for the period ended September 30, 2008 were prepared by following “Regulations for Quarterly Consolidated
Financial Statements”.
[2] Application of accounting standard for measurement of inventories
Prior to April 1, 2008, inventories held for sale in the ordinary course of business were measured by primarily cost
determined by the moving-average method. “Accounting Standard for Measurement of Inventories”(ASBJ Statement
No.9 issued on July 5, 2006), which is effective for fiscal years beginning on or after April 1, 2008, was adopted for theperiod ended September 30, 2008. Due to the application of the accounting standard, inventories are measured byprimarily net selling value determined by the moving-average method. The effect of this change is not material.
[3] Application of practical solution on unification of accounting policies applied to foreign subsidiaries for consolidated
financial statements“Practical Solution on Unification of Accounting Policies Applied to Foreign Subsidiaries for Consolidated Financial
Statements” (ASBJ PITE No.18 issued on May 17, 2006) was applied for the period ended September 30, 2008 and thenecessary adjustments are reflected in the consolidated financial statements. The effect of this change is not material.
[4]Application of accounting standard for lease transactions
Prior to April 1, 2008, finance lease in which the ownership of leased assets was not transferred to lessees was permitted
to be accounted for as operating lease transactions. “Accounting Standard for Lease Transactions”(ASBJ Statement
No.13 issued on June 17, 1993 and revised on March 30, 2007) and “the Guidance on Accounting Standard for Lease
Transactions (ASBJ Guidance No.16 issued on January 18, 1994 and revised on March 30, 2007) were early adopted
from the fiscal year beginning on April 1 , 2008. They were applied for all lease transactions contracted after April 1,
2008, and the finance lease transactions are capitalized recognizing lease assets and lease obligations in the balance
sheet. The effect of this change is not material.
Finance lease transactions in which the ownership of leased assets was not transferred to lessees and contracted before
April 1, 2008 are permitted to be accounted for as operating lease transactions if certain “as if capitalized” information isdisclosed in the notes to the lessee’s financial statements.

22

SOFTBANK CORP. CONSOLIDATED FINANCIAL REPORTFor the six-month period ended September 30, 2008

6. Consolidated Financial Statements(1) Consolidated Balance Sheets(Millions of yen; amounts less than one million yen are omitted.)
As of
September 30, 2008

As ofMarch 31, 2008

AmountAmountASSETS
Current assets:
Cash and deposits
Notes and accounts receivable - tradeMarketable securities¥418,968¥491,161

895,548
5,073

887,723
4,928

Merchandise

57,185

58,118Deferred tax assets

91,895

105,850

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

116,448

103,351(89,268)
1,495,851

1,582,744

Buildings and structures

72,97775,781

Telecommunications equipment

737,660

744,037

Telecommunications service lines

82,87886,062

Land

22,55923,442

Construction in progress

38,86645,576

Other

53,46654,364

1,008,408

1,029,265

Goodwill

988,976

974,435

Software222,332

224,180

Other intangibles

37,481

39,693

1,248,790

1,238,309

401,438

464,997

126,008

126,887

149,052

118,491(4,607)
671,8922,929,091
2,068(4,613)705,763
2,973,337¥4,427,011¥4,558,901(68,388)

Fixed assets:
Property and equipment, net:

Total property and equipment
Intangible assets, net:

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

23

2,818

SOFTBANK CORP. CONSOLIDATED FINANCIAL REPORTFor the six-month period ended September 30, 2008

Consolidated Balance Sheets(Millions of yen; amounts less than one million yen are omitted.)
As of
September 30, 2008

As ofMarch 31, 2008

AmountAmountLIABILITIES AND EQUITYCurrent liabilities:
Accounts payable-trade
Short-term borrowings¥151,776¥187,279

540,597448,571

Commercial paper

2,000

-

Current portion of corporate bonds

20,00052,540Accounts payable - other and accrued expenses

299,949

364,450

Income taxes payable

43,87735,079Current portion of lease obligations

82,586

69,770

Other current liabilities

85,402

83,012

Total current liabilities

1,226,190

1,240,704

Corporate bonds

442,357

445,211Long-term debt

1,490,009

1,586,645

Deferred tax liabilities

39,59841,977

Liability for retirement benefits

15,703

16,158

Allowance for point mileage

39,58443,809Lease obligations

254,407

241,496

Other liabilities

56,682

94,172

Total long-term liabilities

2,338,342

2,469,472

Total liabilities

3,564,533

3,710,176

187,540

187,422259-

Additional paid-in capital

211,858

211,740

Accumulated deficit(53,446)(91,744)

Less: Treasury stock

(210)

(206)

Total shareholders’ equity

345,981307,213

Unrealized gain on available-for-sale securities

48,31080,914

Deferred gain (loss) on derivatives under hedge accounting

16,352(11,823)

Foreign currency translation adjustments

3,473

7,437

Total valuation and translation adjustments

68,13676,529205

120

Minority interests

448,154464,862

Total equity

862,478

848,725¥4,427,011¥4,558,901

Long-term liabilities:

Equity:Common stock
Cash receipts for new stock subscriptions

Stock acquisition rights

Total liabilities and equity

24

SOFTBANK CORP. CONSOLIDATED FINANCIAL REPORTFor the six-month period ended September 30, 2008

(2) Consolidated Statements of Income
For the six-month period ended September 30, 2008
(Millions of yen; amounts less than one million yen are omitted.)Six-month period ended
September 30, 2008
April 1, 2008 to
September 30, 2008
AmountNet sales
Cost of sales
Gross Profit¥1,328,998

690,137
638,860

Selling, general and administrative expenses

458,859

Operating income

180,000

Interest income
Foreign exchange gain, net
Other non-operating income
Non-operating income

866
617
3,183
4,667
57,061
2,421
7,870Interest expense
Equity in loss of affiliated companies
Other non-operating expenses
Non-operating expenses

67,352

Ordinary income

117,315

Gain on sale of investment securities

2,519
2,353
1,342

Dilution gain from changes in equity interest
Other special income
Special income

6,215

Valuation loss on investment securities
Unrealized loss on valuation of investments and loss on sale of investments
at subsidiaries in the U.S., net
Other special losses
Special loss
Income before income taxes and minority interests

3,123
3,175
2,015
8,315
115,215

Income taxes:
Current

34,432

Deferred

17,401

Total income taxes

51,834

Minority interests in net income

22,265¥41,115

Net income25

SOFTBANK CORP. CONSOLIDATED FINANCIAL REPORTFor the six-month period ended September 30, 2008

For the three-month period ended September 30, 2008
(Millions of yen; amounts less than one million yen are omitted.)Three-month period ended
September 30, 2008
July 1, 2008 to
September 30, 2008
AmountNet sales
Cost of sales
Gross Profit¥681,742

Selling, general and administrative expenses

232,017354,811
326,931

Operating income

94,913

Interest income
Foreign exchange gain, net
Other non-operating income
Non-operating income

505
507
1,630
2,643
28,658815
5,039Interest expense
Equity in loss of affiliated companies
Other non-operating expenses
Non-operating expenses

34,513

Ordinary income

63,043

Reversal of allowance for doubtful accounts

510
421

Other special income
Special income

932

Valuation loss on investment securities
Unrealized loss on valuation of investments and loss on sale of investments
at subsidiaries in the U.S., net
Other special losses
Special loss
Income before income taxes and minority interests
Income taxes:

1,809
2,335
1,968
6,113
57,861

Current
Deferred

22,691
2,868

Total income taxes

25,559Minority interests in net income

10,554

Net income¥21,747

26

SOFTBANK CORP. CONSOLIDATED FINANCIAL REPORTFor the six-month period ended September 30, 2008

(3) Consolidated Statements of Cash Flows(Millions of yen; amounts less than one million yen are omitted.)Six-month period ended
September 30, 2008
April 1, 2008 to
September 30, 2008
Cash flows from operating activities:
Income before income taxes and minority interests¥115,215

Adjustments for:
Depreciation and amortization

115,067

Amortization of goodwill

30,632Equity in loss of affiliated companies

2,421

Dilution gain from changes in equity interest, net(2,353)

Valuation loss on investment securities

3,123

Unrealized loss on valuation of investments and loss on sale of investments
at subsidiaries in the U.S., net
Gain on sales of marketable and investment securities, net

3,175

Foreign exchange gain, net(2,472)(574)

Interest and dividend income(1,543)

Interest expense

57,061

Changes in operating assets, and liabilities
Increase in receivables-trade(2,855)Decrease in payables-trade(41,974)

Other, net(15,669)
Sub-total

259,253

Interest and dividends received

1,661Interest paid

(50,658)

Income taxes paid

(33,050)

Net cash provided by operating activities

177,206- Continued -27

SOFTBANK CORP. CONSOLIDATED FINANCIAL REPORTFor the six-month period ended September 30, 2008

Consolidated Statements of Cash Flows (Continued)(Millions of yen; amounts less than one million yen are omitted.)Six-month period ended
September 30, 2008
April 1, 2008 to
September 30, 2008
Cash flows from investing activities:
Purchase of property and equipment, and intangibles¥ (142,867)

Purchase of marketable and investment securities
Proceeds from sale of marketable and investment securities(24,528)

Acquisition of interests in subsidiaries newly consolidated, net of cash acquired(17,530)

12,723

Other, net

7,099

Net cash used in investing activities(165,103)

Cash flows from financing activities:
Increase in short-term borrowings, net

60,127

Increase in commercial paper, net

2,000

Proceeds from long-term debt

102,621

Repayment of long-term debt

(169,028)

Redemption of bonds(35,130)

Exercise of warrants

235

Proceeds from issuance of shares to minority shareholders

872

Cash dividends paid

(2,666)

Cash dividends paid to minority shareholders(4,115)Purchase of treasury stock of subsidiaries in consolidation(52,164)

Proceeds from sale and lease back of equipment newly acquired

55,522

Repayment of lease obligations(36,325)

Other, net(3,891)

Net cash used in financing activities(81,943)

Effect of exchange rate changes
on cash and cash equivalents
Net decrease in cash and cash equivalents

411(69,429)

Increase in cash and cash equivalents due to inclusion of newly consolidated subsidiaries

159

Decrease in cash and cash equivalents due to exclusion of previously consolidated subsidiaries(1,810)Cash and cash equivalents, beginning of the period

490,266

Cash and cash equivalents, end of the period¥419,186

28

SOFTBANK CORP. CONSOLIDATED FINANCIAL REPORTFor the six-month period ended September 30, 2008

“Accounting Standard for Quarterly Financial Reporting and its Implementation Guidance” (ASBJ Statement No.12
issued on March 14, 2007) and “Guidance on Accounting Standard for Quarterly Financial Reporting” (ASBJ Guidance
No.14 issued on March14, 2007) were applied for the period ended September 30, 2008. The consolidated financial
statements for the period ended September 30, 2008 were prepared by following “Regulations for Quarterly
Consolidated Financial Statements”.
(4) Notes to Assumption of a Going Concern
There are no applicable items.

(5) Basis of Presentation of Quarterly Consolidated Financial Statements(Items descried “Qualitative Information/Financial Statements 5. Others” on page 22 are excluded.)
1. Changes in scope of consolidation(1) Changes in scope of consolidation are as follows:<Increase>
7 companies
Significant changes:
SOFTBANK TELECOM PARTNERS Corp.
<Decrease>
10 companies
Significant changes:
Broadmedia Corporation

Additionally acquired

Decreased in interest due to allocation of new stock to a third party(2) The number of consolidated subsidiaries after the changes:
106 companies
2. Changes in scope of equity method(1) Changes in scope of equity method are as follows:<Increase>
13 companies
Significant changes:
Broadmedia Corporation
Changed from a consolidated subsidiary<Decrease>
3 companies(2) The number of non-consolidated subsidiaries and affiliated companies under the equity method after the changes:
Non-consolidated subsidiaries under the equity method: 4 companies
Affiliated companies under the equity method: 73 companies
3. Application of consolidated taxation system
BB Mobile Corp., SOFTBANK MOBILE Corp., and its 5 subsidiaries, all of which are subsidiaries of the Company,
adopted the consolidated taxation system.

29

SOFTBANK CORP. CONSOLIDATED FINANCIAL REPORTFor the six-month period ended September 30, 2008

(6) Notes(Consolidated Balance Sheets)
1. Accumulated depreciation of property and equipment
As of March 31, 2008

As of September 30, 2008
905,748837,286

million yen

million yen

2. Contingent liability
SOFTBANK MOBILE Corp. (SOFTBANK MOBILE) has entrusted cash for the repayment of the straight bonds listed in thefollowing table, based on debt assumption agreements with a financial institution. The bonds are derecognized in the
Company’s consolidated balance sheets.
The trust has collateralized debt obligations (CDO) issued by a Cayman Islands based Special-Purpose Company (SPC). The
SPC has contracted a credit default swap agreement secured by debt securities (corporate bond), which refers to a certain
portion of the portfolio consisting of 160 referenced entities.
In case that defaults (credit events under the agreement) occur in excess of certain numbers of the referenced entities, theamount of redemption of the CDO will be reduced. In case of 7 defaults and in case of 8 or more defaults, the amount ofredemption will be reduced by ¥45,696 million and ¥75,000 million, respectively. Since SOFTBANK MOBILE continues tobe legally responsible for repayments of the bonds, losses equal to the reduced amount, which effects income before income
taxes and minority interests, will be recorded in the consolidated statements of income of the Company.
Mizuho Corporate Bank, Ltd and the Company set up a credit line facility contract in order to support the repayments of thebonds issued by SOFTBANK MOBILE.
SOFTBANK MOBILE received notices of the default of 2 referenced entities by September 30, 2008 and an additional 4
referenced entities after October 1, 2008 from Goldman Sachs International, the arranger of the CDO.

As of September 30, 2008
Subject Bonds

Issue date

Maturity date

Third Series Unsecured Bond

August 19, 1998

August 19, 2010

25,000Fifth Series Unsecured Bond

August 25, 2000

August 25, 2010

25,000Seventh Series Unsecured Bond

September 22, 2000

September 22, 2010

25,000

Total

Amount of transferred bond

75,000 million yen

30

SOFTBANK CORP. CONSOLIDATED FINANCIAL REPORTFor the six-month period ended September 30, 2008

3. Assets pledged as collateral(1) For future lease liabilities
As of March 31, 2008

As of September 30, 2008
Assets pledged as collateral:
Notes and accounts receivable - trade

9,720

10,181

million yen

million yen

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

13,787 million yen

13,402 million yen

Note: The collateral for the future lease liabilities (finance lease accounted for as operating lease transactions) was
provided by mortgaging against the aggregate of the current and future receivables due from customers of certain
consolidated subsidiaries. The future lease liabilities at the end of each period are as follows:
As of March 31, 2008

As of September 30, 2008
Future lease liabilities

5,917(finance lease accounted for as operating lease transactions)

8,121

million yen

million yen(2) For short-term borrowings and long-term debt
Assets pledged as collateral and secured liabilities by consolidated subsidiaries are as follows:
As of September 30, 2008

As of March 31, 2008

Assets pledged as collateral:
Cash and deposits

184,161

220,801

Notes and accounts receivable - trade355,005

330,157

Other current assets

010

Buildings and structures

13,491

13,872

Telecommunications equipment

238,721

268,494

Telecommunications service lines

186

170

15,611

15,576

93,567

152,638

Land
Investment securities and investments in unconsolidated
subsidiaries and affiliated companies
Investments and other assets - other assets
Total

-

240

900,745

1,001,961

million yen

As of September 30, 2008

million yen

As of March 31, 2008

Secured liabilities:
Accounts payable - trade
Short-term borrowings
Long - term debt
Total

1,447

1,137
3,908

4,724

1,345,972

1,378,900

1,351,018

million yen

1,385,072

million yen

SOFTBANK MOBILE shares owned by BB Mobile Corp. and BB Mobile Corp. shares owned by Mobiletech Corporation
are pledged as collateral for long-term debt (totaled to ¥1,239,261 million) resulting from the acquisition of SOFTBANKMOBILE, in addition to the assets pledged as collateral above.
The funds procured through the securitization of installment sales receivables of SOFTBANK Mobile, in the amount of¥191,470 million and ¥39,439 million, are recorded as “Short-term borrowings” and “Long-term debt,” respectively, as of
September 30, 2008. The installment sales receivables, equivalent to ¥230,910 million which is the amount of senior trust
certificate of the securitized installment sales receivables for this procurement, is included in “Notes and accountreceivable-trade,” along with the amount of trust beneficial certificate held by the SOFTBANK MOBILE. Trustee procured
the funds through asset backed loans, which are backed by these installment sales receivables.

31

SOFTBANK CORP. CONSOLIDATED FINANCIAL REPORTFor the six-month period ended September 30, 2008

4.

Cash receipts for new stock subscriptions
Cash receipts for new stock subscriptions represent amounts paid at the exercise of warrants as advances on subscriptions.
On October 2, 2008, the Company issued 180,000 new shares, and ¥129 million and ¥129 million are recorded as “Common
stock” and “Additional paid-in capital”, respectively.

(Consolidated Statements of Income)For the six-month period ended September 30, 2008
1. Selling, general and administrative expenses

Sales commission and sales promotion expense
Provision for allowance for doubtful accounts

Six-month period ended
September 30, 2008
194,578 million yen
22,747

2. Unrealized loss on valuation of investments and loss on sale of investments at subsidiaries in the United States ofAmerica, net
Certain subsidiaries of the Company in the United States of America qualify as investment companies under the provisions of“American Institute of Certified Public Accountants Audit and Accounting Guide” investment companies (the AICPA Guide)
and account for the investment securities in accordance with the AICPA Guide.
The net changes in the fair value of the investments are recorded as “Unrealized loss on valuation of investments and loss onsale of investments at subsidiaries in the U.S., net” and gain or loss on sale of investments, computed based on the acquisition
cost, is also included in this account. The unrealized gain or loss on valuation of investments and gain or loss on sale ofinvestments included in “Unrealized loss on valuation of investments and loss on sale of investments at subsidiaries in the U.S.,
net” are as follows:
Six-month period ended
September 30, 2008
Unrealized loss on valuation of investment
at subsidiaries in the U.S.,net
Loss on sale of investments
at subsidiaries in the U.S.,net
Total(3,167)(8)(3,175) million yen

32

SOFTBANK CORP. CONSOLIDATED FINANCIAL REPORTFor the six-month period ended September 30, 2008

For the three-month period ended September 30, 2008
1. Selling, general and administrative expenses

Sales commission and sales promotion expenseThree-month period ended
September 30, 2008
99,183 million yen

Provision for allowance for doubtful accounts

12,955

2. Unrealized loss on valuation of investments and loss on sale of investments at subsidiaries in the United States ofAmerica, net
Certain subsidiaries of the Company in the United States of America qualify as investment companies under the provisions of“American Institute of Certified Public Accountants Audit and Accounting Guide” investment companies (the AICPA Guide)
and account for the investment securities in accordance with the AICPA Guide.
The net changes in the fair value of the investments are recorded as “Unrealized loss on valuation of investments and loss onsale of investments at subsidiaries in the U.S., net” and gain or loss on sale of investments, computed based on the acquisition
cost, is also included in this account. The unrealized gain or loss on valuation of investments and gain or loss on sale ofinvestments included in “Unrealized loss on valuation of investments and loss on sale of investments at subsidiaries in the U.S.,
net” are as follows:
Three-month period ended
September 30, 2008
Unrealized loss on valuation of investment
at subsidiaries in the U.S.,net
Loss on sale of investments
at subsidiaries in the U.S.,net
Total

(910)
(1,425)(2,335) million yen(Consolidated Statements of Cash Flows)
For the six-month period ended September 30, 2008
1. Reconciliation of cash and cash equivalents to the amounts presented in the accompanying consolidated balance sheets
As of September 30, 2008
Cash and deposits

418,968

Marketable securities

5,073

Time deposits with original maturity over three months(1,050)Stocks and bonds with original maturity over three months(3,805)

Cash and cash equivalents

419,186

million yen

2. Scope of Purchase of property and equipment, and intangibles in the consolidated statements of cash flows“Purchase of property and equipment, and intangibles” are comprised of cash outflows from purchasing property and equipment,
and intangible assets (excluding goodwill) and long-term prepaid expenses.
3. Proceeds from sale and lease back of equipment newly acquired
Once SOFTBANK MOBILE purchases telecommunications equipment for the purpose of assembly, installation and inspection,
SOFTBANK MOBILE sells the equipment to lease companies for sale and lease back purpose. The leased asset and leaseobligation are recorded in the consolidated balance sheets.
The cash outflows from the purchase of the equipment from vendors are included in “Purchase of property and equipment, andintangibles” and the cash inflows from the sale of the equipment to lease companies are included in “Proceeds from sale andlease back of equipment newly acquired.”33

SOFTBANK CORP. CONSOLIDATED FINANCIAL REPORTFor the six-month period ended September 30, 2008

(Leases)
Finance lease transactions“Accounting Standard for Lease Transactions”(ASBJ Statement No.13) and “the Guidance on Accounting Standard for Lease
Transactions (ASBJ Guidance No.16 ) were early adopted from the fiscal year beginning on April 1 , 2008.
(As a lessee)(1) Finance leases in which the ownership of leased assets is transferred to lessees at the end of lease periods[1] Details of lease assets are as follows:
Tangible assets, mainly telecommunications equipment in the Mobile Communications segment.
[2] Depreciation method for lease assets
The depreciation method is the same as the method used for fixed assets possessed by each subsidiary.
(2) Finance leases in which the ownership of leased assets is not transferred to lessees at the end of lease periods[1] Details of lease assets are as follows:
Tangible assets, telecommunications equipment in the Fixed-line Telecommunications segment.
[2] Depreciation method for lease assets
The straight-line method is adopted over the period of the finance leases, assuming no residual value.
Lease transactions contracted before April 1, 2008 are continuously permitted to be accounted for as operating lease transactions,and the note of as if capitalized information is as follows:[1] Amounts equivalent to acquisition costs, accumulated depreciation, and accumulated impairment loss of leased property for eachperiod:As of September 30, 2008

Telecommunications equipment andtelecommunications service lines
Acquisition cost
Accumulated depreciation

179,479(66,202)173,901(70,810)

Accumulated impairment loss

(30,521)72,569Net leased property
Buildings and structures
Acquisition cost
Accumulated depreciation
Accumulated impairment loss

million yen

38,386
16,816(6,731)(1,099)8,984
9,813(4,336)(204)
5,272
247,535(90,496)(31,825)
125,21334(30,521)82,755

million yen

47,005(7,429)-47,004(8,617)-Net leased property
Property and equipment - others
Acquisition cost
Accumulated depreciation
Accumulated impairment loss
Net leased property
Intangible assets
Acquisition cost
Accumulated depreciation
Accumulated impairment loss
Net leased property
Total
Acquisition cost
Accumulated depreciation
Accumulated impairment loss
Net leased property

As of March 31, 2008

million yen

39,575

million yen

million yen

17,979(6,302)(1,253)
10,423

million yen

million yen

9,373(3,353)
(169)
5,851

million yen

million yen

253,838(83,288)(31,943)
138,606

million yen

SOFTBANK CORP. CONSOLIDATED FINANCIAL REPORTFor the six-month period ended September 30, 2008

Long-term prepaid expenses relating to a lease contract, in which the contract term and payment term are different, for theperiod ended September 30, 2008 and March 31, 2008 are ¥18,967 million and ¥15,053 million, respectively and areincluded in “Other assets” of investments and other assets in the consolidated balance sheets.

[2]Obligations under finance lease at the end of each period:
As of September 30, 2008

Due within one year
Due after one year

As of March 31, 2008

32,482
141,179

31,828125,702
Total

157,530

million yen

173,662

million yen

Balance of allowance for impairment loss on
leased property

18,173

million yen

21,601

million yen[3]Lease payments, reversal of allowance for impairment loss on leased property, amounts equivalent to depreciation,interest expense and impairment loss for each period:
Six-month period ended

Fiscal year ended

September 30, 2008

March 31, 2008

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

21,165

million yen

44,329

3,362

5,387

14,436
4,775-

30,917
12,788
8,818

million yen[4] Calculation method used to determine the amount equivalent to depreciation and interest expense:
The amount equivalent to depreciation is computed using the straight-line method over the period of the finance leases,
assuming no residual value.
The amount equivalent to interest expense is calculated by subtracting acquisition costs from the total lease payments
and allocated over the lease periods based on the interest method.

35

SOFTBANK CORP. CONSOLIDATED FINANCIAL REPORTFor the six-month period ended September 30, 2008

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

As of September 30, 2008
Investment
Carrying
Differences
Cost
Amount
(1)
(2)
(3)

2.

Equity securities
Debt securities
Corporate bonds
OthersTotal

31,137

114,931

83,794142
3,803
35,083142
3,599
118,674(203)
83,590

As of March 31, 2008
Investment
Carrying
Differences
AmountCost
29,219171,676
142,456
1,320
30,5401,318
172,994(2)
142,454

Carrying amounts of the unlisted investment securities(Millions of yen; amounts less than one million yen are omitted.)

As of September 30, 2008

As of March 31, 2008

Carrying Amounts

Carrying Amounts

Foreign debt securities

¥700

¥700

Debt securities

398

368

Equity securities

89,89591,446

Investments in limited partnerships

6,244

6,725

(1)Held-to-maturity debt securities(2)Available-for-sale and other securities

Money Management Fund

3.

-

2,519

Foreign debt securities

663

958

Others

976

1,058

Total

¥98,879¥103,777

Investment securities evaluated at fair value under the provisions of “American Institute of Certified Public
Accountants Audit and Accounting Guide” Investment Companies
Certain subsidiaries of the Company in the United States of America qualify as investment companies under the provisions of“American Institute of Certified Public Accountants Audit and Accounting Guide” investment companies (the AICPA Guide)
and account for the investment securities in accordance with the AICPA Guide.
The carrying amounts of the investment securities at fair value recorded in the consolidated balance sheets at September 30,
2008 and March 31, 2008 are as follows:
As of September 30, 2008
Carrying amounts of investment securities at fair value recorded in consolidated balance sheets:

21,445 million yen

As of March 31, 2008
Carrying amounts of investment securities at fair value recorded in consolidated balance sheets:

26,042 million yen

36

SOFTBANK CORP. CONSOLIDATED FINANCIAL REPORTFor the six-month period ended September 30, 2008

(Per Share Data)
1.

Shareholders’ equity per share
As of

As of

September 30, 2008

March 31, 2008

Shareholders’ equity per share (yen)2.

¥382.96

Net income per share and basic data for computation of the per share data

For the six-month period ended September 30, 2008
April 1, 2008 to
September 30, 2008

Net income per share - primary (yen)¥38.04

Net income per share – diluted (yen)36.20

April 1, 2008 to
September 30, 2008

Basic data for computation of the per share data
1. Net income (in millions of yen)

41,115

2. Amounts not allocated to shareholders(in millions of yen)-

3. Net income allocated to common stock outstanding(in millions of yen)
4. Weighted average number of common stock outstanding
during period (unit: thousand of shares)

41,1151,080,587

5. Adjustment for net income used to calculate diluted net income per share(in millions of yen)
–Adjustments for net income used to calculate diluted net income
per share in consolidated subsidiaries and affiliated companies– Interest expense (net of tax)

(17)

778

–Total6. Increase of common stock used to calculate diluted net income per share(unit: thousand of shares)
7. Residual securities which do not dilute net income per share andhave significant changes from the end of previous fiscal year

37

760
76,205-¥355.15

SOFTBANK CORP. CONSOLIDATED FINANCIAL REPORTFor the six-month period ended September 30, 2008

For the three-month period ended September 30, 2008
July 1, 2008 to
September 30, 2008

Net income per share - primary (yen)¥20.12

Net income per share – diluted (yen)19.12

July 1, 2008 to
September 30, 2008

Basic data for computation of the per share data
1. Net income (in millions of yen)

21,747

2. Amounts not allocated to shareholders(in millions of yen)-

3. Net income allocated to common stock outstanding(in millions of yen)

21,747

4. Weighted average number of common stock outstanding
during period (unit: thousand of shares)

1,080,635

5. Adjustment for net income used to calculate diluted net income per share(in millions of yen)
–Adjustments for net income used to calculate diluted net income
per share in consolidated subsidiaries and affiliated companies– Interest expense (net of tax)

(8)
389

–Total6. Increase of common stock used to calculate diluted net income per share(unit: thousand of shares)
7. Residual securities which do not dilute net income per share andhave significant changes from the end of previous fiscal year

38

380
76,133-

SOFTBANK CORP. CONSOLIDATED FINANCIAL REPORTFor the six-month period ended September 30, 2008

(7) Segment Information
1. Business segment information
For the six-month period ended September 30, 2008 (From April 1, 2008 to September 30, 2008)(Millions of yen; amounts less than one million yen are omitted.)
Fixed-line

Internet

Elimination

MobileBroadband

Communications

Infrastructure

Telecommunications(1) Customers¥770,166¥116,970¥156,629¥124,142¥122,291¥38,797¥1,328,998¥-¥1,328,998(2) Inter-segment

3,794

3,068

21,829

1,443

5,689

7,210

43,035(43,035)-

Total

773,961

120,038

178,458

125,586

127,981

46,0081,372,033(43,035)

1,328,998

Operating income

88,164

22,265

5,557

61,188

2,747

2,624

182,547(2,546)

180,000

e-Commerce

Others

Total

CultureConsolidated
or Corporate

Net sales

For the three-month period ended September 30, 2008 (From July 1, 2008 to September 30, 2008)(Millions of yen; amounts less than one million yen are omitted.)
Fixed-line

Internet

Elimination

MobileBroadband

Communications

Infrastructure

Telecommunications(1) Customers¥399,474¥58,179¥78,500¥62,590¥62,620¥20,376¥681,742¥-¥681,742(2) Inter-segment

1,900

1,731

11,504

669

2,901

3,812

22,520(22,520)-

Total

401,375

59,91190,00563,25965,522

24,189704,262(22,520)681,742

Operating income

43,89011,7894,759

30,645

1,737

3,383

96,205(1,291)

94,913e-Commerce

Others

Total

CultureConsolidated
or Corporate

Net sales

Notes:
1. Business segments are categorized primarily based on the nature of business operations, type of services, and similarity of sales channels,
etc. which the SOFTBANK Group uses for its internal management purpose.
2. Regarding the main business segments, please see “Qualitative Information / Financial Statements 4. The SOFTBANK Group” indetails on page 21.

39

SOFTBANK CORP. CONSOLIDATED FINANCIAL REPORTFor the six-month period ended September 30, 2008

2. Geographic segment information
For the six-month period ended September 30, 2008 (From April 1, 2008 to September 30, 2008)(Millions of yen; amounts less than one million yen are omitted.)
North

Japan

OthersAmerica

Elimination

Total

Consolidated

or corporate

Net sales(1)Customers¥1,321,839¥568¥6,590¥1,328,998¥-¥1,328,998

220

-

-

220

(220)

-

Total

1,322,059

568

6,590

1,329,218(220)

1,328,998

Operating income (loss)

180,688

2,910

(238)

183,360(3,360)180,000(2)Inter-segment

For the three-month period ended September 30, 2008 (From July 1, 2008 to September 30, 2008)(Millions of yen; amounts less than one million yen are omitted.)
North

Japan

OthersAmerica

Elimination

Total

Consolidated

or corporate

Net sales(1)Customers¥677,878¥270¥3,593¥681,742¥-¥681,742

100

-

-

100

(100)

-

Total

677,978

270

3,593

681,842(100)

681,742

Operating income (loss)

93,591

3,197

(169)

96,618(1,704)

94,913(2)Inter-segment

Notes:
1. Net sales by geographic region are recognized based on geographic location of the operation.
2. Significant countries in each region are as follows:
North America : United States of America and Canada
Others: Europe, Korea, China, Singapore, and others

3. In the North America segment, Softbank Holdings Inc., a consolidated subsidiary of the company in the United States of America,
reversed a tax reserve for net worth taxes of ¥3,609 million and credited it to operating expenses.

3. Overseas sales
Disclosure of overseas sales for the six-month and the three-month period ended September 30, 2008 is omitted because the total overseas
sales are less than 10% of total consolidated sales.

(8) Notes to Significant Changes in Shareholder’s Equity
There are no applicable items.

40

SOFTBANK CORP. CONSOLIDATED FINANCIAL REPORTFor the six-month period ended September 30, 2008

[For Reference]
Consolidated Financial Statements for the six-month and three-month period ended September 30, 2007
(1) Summary of Consolidated Statements of Income(Millions of yen; amounts less than one million yen are omitted.)Six-month period ended September 30, 2007
April 1, 2007 to
September 30, 2007
AmountNet sales
Cost of sales
Gross Profit¥1,364,745
718,864
645,881

Selling, general and administrative expenses

478,134

Operating income

167,746

Interest income
Foreign exchange gain, net
Equity in earnings of affiliated companies

1,537
2,605
3,136

Other non-operating income
Non-operating income

2,905
10,185Interest expense
Other non-operating expenses
Non-operating expenses

55,374
11,392
66,767

Ordinary income

111,165

Gain on sale of investment securities

4,706

Dilution gain from changes in equity interest
Unrealized appreciation on investments and gain on sale of investments
at subsidiaries in the U.S., net
Other special income
Special income
Valuation loss on investment securities
Loss on disposal of fixed assets

3,089
18,8252,206
28,827
10,165
3,993

Other special losses
Special loss

2,903
17,062

Income before income taxes and minority interests

122,930

Income taxes:
Current

16,808Deferred

39,075

Total income taxes

55,884

Minority interests in net income

20,583

Net income¥46,462

41

SOFTBANK CORP. CONSOLIDATED FINANCIAL REPORTFor the six-month period ended September 30, 2008

(Millions of yen; amounts less than one million yen are omitted.)Three-month period ended
September 30, 2007
July 1, 2007 to
September 30, 2007
AmountNet sales
Cost of sales
Gross Profit¥701,660

Selling, general and administrative expenses

246,691

365,968
335,692

Operating income

89,000Interest income
Foreign exchange gain, net
Equity in earnings of affiliated companies

929
2,062
1,696

Other non-operating income
Non-operating income

965
5,654

Interest expense
Other non-operating expenses
Non-operating expenses

28,413

Ordinary income
Unrealized appreciation on investments and gain on sale of investments
at subsidiaries in the U.S., net
Other special income
Special income

60,0106,230
34,643

Valuation loss on investment securities
Loss on disposal of fixed assets

18,759553
19,312
9,995
2,963

Other special losses
Special loss

1,836
14,796

Income before income taxes and minority interests

64,527

Income taxes:
Current

13,982

Deferred

19,009Total income taxes

32,992

Minority interests in net income

10,203

Net income¥21,33142

SOFTBANK CORP. CONSOLIDATED FINANCIAL REPORTFor the six-month period ended September 30, 2008

(2) Summary of Consolidated Statements of Cash Flows(Millions of yen; amounts less than one million yen are omitted.)Six-month period ended
September 30, 2007
April 1,2007 to
September 30, 2007

Cash flows from operating activities:
Income before income taxes and minority interests¥122,930

Adjustments for:
Depreciation and amortization

107,762

Amortization of goodwill

29,456Equity in earnings of affiliated companies(3,136)

Dilution gain from changes in equity interest, net(1,463)

Valuation loss on investment securities

10,165

Unrealized appreciation on investments and gain on sale of investments
at subsidiaries in the U.S., net
Gain on sale of marketable and investment securities, net(18,825)

Foreign exchange gain, net(5,933)(2,488)Interest and dividend income(1,871)

Interest expense

55,374

Changes in operating assets, and liabilities
Increase in receivables-trade(144,235)

Decrease in payables-trade(64,734)

Other, net(5,729)Sub-total

77,270Interest and dividends received

1,552Interest paid

(49,686)

Income taxes paid

(28,692)

Net cash provided by operating activities

443- Continued -43

SOFTBANK CORP. CONSOLIDATED FINANCIAL REPORTFor the six-month period ended September 30, 2008

Summary of Consolidated Statements of Cash Flows (Continued)(Millions of yen; amounts less than one million yen are omitted.)Six-month period ended
September 30, 2007
April 1,2007 to
September 30, 2007
Cash flows from investing activities:
Purchase of property and equipment, and intangibles¥ (204,405)

Purchase of marketable and investment securities
Proceeds from sale of marketable and investment securities(29,777)

Acquisition of interests in subsidiaries newly consolidated, net of cash acquired
Proceeds from sale of interests in consolidated subsidiaries
Other, net

2,674
1,012
(18,576)

Net cash used in investing activities(227,285)

21,787

Cash flows from financing activities:
Decrease in short-term borrowings, net(46,160)

Decrease in commercial paper, net(5,000)

Proceeds from long-term debt

153,024

Repayment of long-term debt

(86,438)

Proceeds from issuance of bonds

89,471

Redemption of bonds(23,932)

Exercise of warrants

44,819Proceeds from issuance of shares to minority shareholders

6,039

Cash dividends paid

(2,628)Cash dividends paid to minority shareholders(3,514)Purchase of treasury stock of subsidiaries in consolidation(247)

Proceeds from sale and lease back of equipment newly acquired

220,816

Decrease in cash receipts as collateral, net(20,000)

Repayment of lease obligations(18,674)

Other, net(4,047)

Net cash provided by financing activities

303,526

Effect of exchange rate changes
on cash and cash equivalents
Net increase in cash and cash equivalents

76,022

Decrease in cash and cash equivalents due to exclusion of previously consolidated subsidiaries

(771)

(662)

Cash and cash equivalents, beginning of the period

377,520

Cash and cash equivalents, end of the period¥452,771

44

SOFTBANK CORP. CONSOLIDATED FINANCIAL REPORTFor the six-month period ended September 30, 2008(3) Summary of Segment Information
1. Business segment information
For the six-month period ended September 30, 2007 (From April 1, 2007 to September 30, 2007)(Millions of yen; amounts less than one million yen are omitted.)
MobileFixed-line

Broadband

Internet

Elimination
e-Commerce

Others

Total

CultureConsolidated

Communications

Infrastructure

Telecommunications

or Corporate(1) Customers¥808,914¥126,750¥157,874¥108,862¥118,511¥43,831¥1,364,745¥-¥1,364,745(2) Inter-segment

5,595

3,068

23,598

1,557

6,962

7,947

48,729(48,729)-

Total

814,509

129,819

181,473

110,419

125,473

51,7791,413,474(48,729)

1,364,745

Operating income (loss)

94,21918,986349

54,915

2,100

(650)

169,920(2,173)

167,746

Net sales

For the three-month period ended September 30, 2007 (From July 1, 2007 to September 30, 2007)(Millions of yen; amounts less than one million yen are omitted.)
MobileFixed-line

Broadband

Internet

Elimination
e-Commerce

Others

Total

CultureConsolidated

Communications

Infrastructure

Telecommunications(1) Customers¥419,877¥62,423¥80,023¥56,968¥60,240¥22,126¥701,660¥-¥701,660(2) Inter-segment

2,964

1,648

10,963

654

3,571

4,781

24,583(24,583)-

Total

422,841

64,072

90,986

57,62363,812

26,907726,243(24,583)

701,660

Operating income

50,691

10,320460

27,766933

38

90,211(1,211)89,000or Corporate

Net sales

Notes:
1. Business segments are categorized primarily based on the nature of business operations, type of services, and similarity of sales channels,
etc. which the SOFTBANK Group uses for its internal management purpose.
2. The main business segments are as follows:
Mobile Communications: Provision of mobile communication services and sale of mobile phones accompanying
the services etc.

Broadband Infrastructure: Provision of ADSL and fiber-optic high-speed Internet connection service, IP telephony service, andprovision of contents etc.

Fixed-line Telecommunications: Provision of fixed-line telecommunications service and data center service etc.
Internet Culture: Internet-based advertising operations, portal business, and auction business etc.

e-Commerce: Distribution of PC software and such hardware as PCs and peripherals, enterprise solutions, anddiversified e-commerce businesses, including business transaction platform (B2B) and consumer-related
e-commerce (B2C) etc.

Others: Broadmedia, Technology Services, Media & Marketing, Overseas funds, and other businesses

45

SOFTBANK CORP. CONSOLIDATED FINANCIAL REPORTFor the six-month period ended September 30, 2008

2. Geographic segment information
For the six-month period ended September 30, 2007 (From April 1, 2007 to September 30, 2007)(Millions of yen; amounts less than one million yen are omitted.)North

Elimination

Japan

Others

Total

Consolidated

Americaor corporate

Net sales(1)Customers¥1,356,729¥763¥7,251¥1,364,745¥-¥1,364,745

300

-

149

449

(449)

-

Total

1,357,029

763

7,401

1,365,195(449)

1,364,745

Operating income (loss)

171,075

(408)

(227)

170,440(2,693)

167,746(2)Inter-segment

For the three-month period ended September 30, 2007 (From July 1, 2007 to September 30, 2007)(Millions of yen; amounts less than one million yen are omitted.)North

Elimination

Japan

Others

Total

Consolidated

Americaor corporate

Net sales(1)Customers¥697,610¥299¥3,750¥701,660¥-¥701,660

187

-

58

246

(246)

-

Total

697,797

299

3,809

701,906(246)

701,660

Operating income (loss)

90,400

(104)

(58)

90,237(1,237)89,000(2)Inter-segment

Notes:
1. Net sales by geographic region are recognized based on geographic location of the operation.
2. Significant countries in each region are as follows:
North America : United States of America and Canada
Others: Europe, Korea, China, Singapore, and others

3. Overseas sales
Disclosure of overseas sales for the six month and three-month period ended September 30, 2007 is omitted because the total overseas sales
are less than 10% of total consolidated sales.

46