SOFTBANK CORP.
CONSOLIDATED FINANCIAL REPORTFor the three-month period ended June 30, 2008
Tokyo, August 5, 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%Three-month period ended
June 30, 2008

¥647,255-¥85,086-¥54,272-¥19,368-

Three-month period ended
June 30, 2007

¥663,084

34.2¥78,74644.9¥51,15496.8¥25,130-

Net income
per share−basic(yen)

Net income
per share−diluted(yen)Three-month period ended
June 30, 2008¥17.92¥17.07

Three-month period ended
June 30, 2007¥23.80¥22.36(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 June 30, 2008

¥4,428,635¥844,662

9.0¥367.39

As of March 31, 2008

¥4,558,901¥848,725

8.4¥355.15

Note: Shareholders’equity (consolidated)
As of June 30, 2008:
As of March 31, 2008:¥397,016 million¥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

−

2.50

2.50

0.00

−

2.50

−

2.50

3. Forecast of the consolidated results for the fiscal year ending in March 2009 (April 1, 2008 – March 31, 2009)
Revision of forecast of the consolidated results: None
Forecast of the consolidated results for the fiscal year ending March 2009 is not disclosed. Please see “Qualitative Information / Financial
Statements 3. Qualitative Information on Forecast of Consolidated Results” in details on page 15.

1

4. Others(1) Significant Changes in Scope of Consolidation (Changes in Scope of Consolidation of Special-Purpose Companies):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 17.
(4) Number of shares issued (Common stock)[1] Number of shares issued (including treasury stock):
As of June 30, 2008:
As of March 31, 2008:

1,080,786,678 shares
1,080,664,578 shares[2] Number of treasury stock:
As of June 30, 2008:
As of March 31, 2008:

164,306 shares
163,811 shares[3] Weighted average number of common stock :As of June 30, 2008:
As of June 30, 2007:

1,080,540,130 shares
1,055,722,128 shares“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 theperiod ended June 30, 2008. The consolidated financial statements for the period ended June 30, 2008 were prepared by following “Regulations for
Quarterly Consolidated Financial Statements”.

2

SOFTBANK CORP. CONSOLIDATED FINANCIAL REPORTFor the three-month period ended June 30, 2008

Qualitative Information / Financial Statements
1. Qualitative Information on Consolidated Results of Operations<<Summary of Results of Operations>>
Net sales¥647,255 million (2.4% decrease year-on-year)

Operating income¥85,086 million (8.1% increase year-on-year)

Ordinary income¥54,272 million (6.1% increase year-on-year)

Net income¥19,368 million (22.9% decrease year-on-year)<Overview of results for the period ended June 30, 2008>
Net sales for the period (three-month period ended June 30, 2008) totaled ¥647,255 million, and operating income
came to ¥85,086 million. Net sales declined compared to the corresponding three-month period in the previous
fiscal year (the three-month period ended June 30, 2007; hereinafter ‘year-on-year’), primarily because of a decline inhandset sales caused by a decrease in the number of handset upgrades and others at the Mobile Communications
segment and a decline in ARPU even though the business had steady growth in the number of subscribers
year-on-year.

Nevertheless, the Mobile Communications business made progress in reducing operating expenses

leading to operating income growth.

Operating income also grew at the Internet Culture and Broadband

Infrastructure segments, resulting in an overall year-on-year increase.
The Internet is at the core of the SOFTBANK Group’s (hereinafter ‘the Group’) business activities. The Group
operates under the two concepts of “Winners in the mobile Internet market are winners in the Internet market,” and“Winners in Asia are winners in the World,” with the twin aims of becoming the “No. 1 mobile Internet company”
and the “No. 1 Internet company in Asia.”
The Mobile Communications business has achieved the industry’s highest monthly net additions in the number ofsubscribers (new subscribers minus cancellations) since May 2007, placing SOFTBANK MOBILE Corp. (hereinafter‘SOFTBANK MOBILE’) first in the industry’s net subscriber additions for the fiscal year ended March 31, 2008.
Net additions remained strong during the period, bringing the unbroken streak of being No. 1 in net additions to 14
consecutive months*2.
In April 2008, SOFTBANK CORP. (hereinafter ‘the Company’) invested in Oak Pacific Interactive, operator of
Xiaonei.com, China’s largest SNS*3, and working with the Company’s Chinese affiliate Alibaba Group Holding
Limited, is accelerating development in Asia with a focus on China. Another agreement was reached in April 2008
among China Mobile Limited, the world’s largest mobile phone company in terms of the number of subscribers,
Vodafone Group Plc and the Company to establish the Joint Innovation Lab joint venture.
*1. Average Revenue Per User
*2. Source: Telecommunications Carriers Association*3. Social Networking Service: A website providing community-oriented, membership-based services to promote and support
interaction among people.

3

SOFTBANK CORP. CONSOLIDATED FINANCIAL REPORTFor the three-month period ended June 30, 2008

<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———

78,74689,00092,44164,09885,086———

51,15460,010120,833

26,61554,272———

25,13021,331

46,734

15,427

19,368———(1) Net Sales
Net sales declined ¥15,829 million, or 2.4% year-on-year, to ¥647,255 million.

The decrease was primarily the

result of a ¥19,082 million decline in net sales at the Mobile Communications segment on a decline in handset sales
caused by a decrease in the number of handset upgrades and others and a decline in ARPU even though the businesshad steady growth in the number of subscribers year-on-year.

(2) Operating Income
Operating income rose ¥6,339 million, 8.1% year-on-year, to ¥85,086 million.

The Mobile Communications

segment reduced operating expenses and operating income grew, while the Internet Culture segment recorded a
12.5% increase to ¥3,394 million and the Broadband Infrastructure segment a 20.9% increase to ¥1,809 million.
The cost of sales for the period decreased by ¥17,569 million year-on-year, to ¥335,326 million, reflecting adecline in handset sales caused by a decrease in the number of handset upgrades and others at the Mobile
Communications segment.

Selling, general and administrative expenses came to ¥226,842 million, a decrease of¥4,599 million year-on-year.

(3) Non-operating Income
Non-operating income decreased ¥2,506 million year-on-year, to ¥2,024 million.

(4) Non-operating Expenses
Non-operating expenses came to ¥32,839 million, remaining at a level comparable to the previous year’s ¥32,123
million.

The main contributor was interest expense of ¥28,402 million, which increased by ¥1,441 million

year-on-year. In addition, while a ¥1,440 million equity in earnings of affiliated companies was recorded in thesame period of the previous fiscal year, this period saw a ¥1,605 million equity in loss of affiliated companies.

(5) Special Income
Special income totaled ¥5,283 million, which included ¥2,464 million from sales of investment securities and ¥2,209
million from dilution gain from changes in equity interest.

(6) Special Loss
Special losses came to ¥2,201 million, the major component of which was a ¥1,313 million valuation loss on
investment securities.

4

SOFTBANK CORP. CONSOLIDATED FINANCIAL REPORTFor the three-month period ended June 30, 2008

(7) Income Taxes and Others
Current income taxes totaled ¥11,741 million, deferred income taxes came to ¥14,533 million, and ¥11,710 million
was recorded as minority interests in net income.
Results by business segment are as follows:[Mobile Communications]<<Summary of Segment Results>>
Net sales¥372,585 million (4.9% decrease year-on-year)

Operating income¥44,273 million (1.7% increase year-on-year)

First quarter net subscriber additions totaled 525,500, No. 1 in monthly net additions for 14 consecutive
monthsTotal subscribers surpassed 19 million, 3G subscribers exceeded 15 million<Analysis of Results>
Net sales decreased by ¥19,082 million year-on-year, or 4.9%, to ¥372,585 million.

Operating income increased by¥744 million year-on-year, or 1.7%, to ¥44,273 million. The decrease in net sales was primarily a reflection of adecline in handset sales caused by a decrease in the number of handset upgrades and others at SOFTBANK MOBILE,
the segment’s core company. In addition, even though the number of subscribers showed steady growth, ARPU waslower 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

Sales

391,668

422,841

406,081410,260

372,585———

Operatingincome43,52850,69153,76026,58944,273

—

—

—

Q2

Q3

Q4

<Number of Mobile Phone Subscribers>
SOFTBANK MOBILE has recorded the industry’s highest monthly net additions in subscribers (new subscribers
minus cancellations) for the 14 consecutive months since May 2007.

The number of SOFTBANK MOBILE*4

subscribers totaled 19,111,700 as of the end of the period, for a year-on-year increase of 2,671,200 subscribers anda 1.6 percentage point increase in market share to 18.4%. The number of 3G subscribers exceeded 15 million.
This performance was primarily a reflection of the steady increase in the business’s comprehensive strength underthe “four key initiatives” of 3G network enhancement, 3G handset lineup enrichment, mobile content enhancement,
and enhancement of the sales structure and branding. In addition, the number of applications for White Plan with abasic monthly charge of ¥980 (including tax) exceeded 14 million in July, 2008.
In order to further promote the migration to 3G service, SOFTBANK MOBILE stopped accepting new contract
applications for its 2G service, including its prepaid service, on March 31, 2008. The 2G service, including its
prepaid service, will be terminated by March 31, 2010.

5

SOFTBANK CORP. CONSOLIDATED FINANCIAL REPORTFor the three-month period ended June 30, 2008

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

Fiscal year ending March 31, 2009

Q1

Q2

Q3

Q4

Q1

Net
additions

530.8

612.0

561.0

972.7

525.5

—

—

—

Total

16,440.5

17,052.5

17,613.5

18,586.2

19,111.7———*4. The total number of subscribers for SOFTBANK MOBILE includes communication module service subscribers.
of communication module service subscribers at the end of the period was 17,700.

The number

Q2

Q3

Q4

<Churn Rate and Upgrade Rate>
The churn rate for the period was 0.98%, marking the first time the overall rate fell below the 1% level. The
upgrade rate for the period was 1.27%, for a 0.98 percentage point decline year-on-year.
In addition to the steady decline in the churn rate linked to increased customer satisfaction under the “four key
initiatives,” the full-scale introduction of installment sales of handsets in October 2006 is contributing to the decline
in the churn rate.
(%/month)
Fiscal year ended March 31, 2008
Q1

Q2

Fiscal year ending March 31, 2009

Q3

Q4

Q1

Q2

Q3

Q4

Churn rate

1.46

1.42

1.21

1.19

0.98

—

—

—

(3G only)*5

1.07

1.05

0.88

0.85

0.72

—

—

—

Upgrade
rate

2.25

2.67

2.00

1.93

1.27

—

—

—

*5. Excludes the 3G Prepaid Service.

<ARPU and Average Acquisition Commission per User>
Total ARPU in the period was ¥4,180, for a year-on-year decline of ¥820.

This decline in total ARPU was areflection of the Special Discount for subscribers to New Super Bonus and the growth in the number of subscribers toWhite Plan, which has a basic monthly charge of ¥980 (including tax). On the other hand, data ARPU rose ¥240
year-on-year to ¥1,650, and accounted for 39.4% of total ARPU.
The average acquisition commission per user during the period was ¥35,600.
(Yen per month)Fiscal year ended March 31, 2008

Fiscal year ending March 31, 2009

Q1

Q2

Q3

Q4

Total

5,000

4,800

4,520

4,310

4,180

—

—

—

(Voice)

3,590

3,340

3,040

2,710

2,530

—

—

—

(Data)

1,410

1,470

1,490

1,600

1,650

—

—

—

6

Q1

Q2

Q3

Q4

SOFTBANK CORP. CONSOLIDATED FINANCIAL REPORTFor the three-month period ended June 30, 2008

<Other>SOFTBANK MOBILE has been continuously pursuing ‘3G handset lineup enrichment’ and announced 12 newmodels of handsets as its handset lineup for summer in June 2008.

These new models were released successively

from late June. All of them are ‘3G High Speed’ compatible with the ‘PC Site Browser’ function enabling optimal
enjoyment of mobile Internet, and are equipped with a large screen for watching ‘One Seg’ broadcasts. In addition,
SOFTBANK MOBILE launched Apple's iPhone(TM) 3G on July 11 in Japan that was released in 21 countries in theworld on the same day.

[Broadband Infrastructure]<<Summary of Segment Results>>
Net sales¥60,127 million (8.5% decrease year-on-year)

Operating income¥10,475 million (20.9% increase year-on-year)

Total installed lines for Yahoo! BB ADSL: 4,653,000 (at the end of June 2008)
White Call 24 launched, providing free domestic calls between BB Phone and SoftBank mobile phones<Analysis of Results>
Net sales decreased by ¥5,619 million year-on-year, or 8.5%, to ¥60,127 million.
¥1,809 million, or 20.9%, to ¥10,475 million.

Operating income increased by

Revenue from core company SOFTBANK BB Corp.’s (hereinafter‘SOFTBANK BB’) ADSL business is trending lower on declines in both the total installed lines and ARPU, but thetrend of profit growth continues because of lower depreciation and amortization and leasing expenses fortelecommunications equipment.
<Quarterly Results>(Millions of yen)
Fiscal year ended March 31, 2008

Fiscal year ending March 31, 2009

Q1

Q2

Q3

Q4

Q1

Sales

65,74764,07264,34063,90860,127———

Operatingincome8,665

10,32011,3099,404

10,475

—

—

—

Q2

Q3

Q4

<Overview of Operations>
The number of installed lines for Yahoo! BB ADSL, the comprehensive broadband service provided by SOFTBANK
BB, totaled 4,653,000 lines at the end of the period, and ARPU on a customer payment basis was ¥4,283.
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 the two companies, including cross-selling across the two companies’ sales channels.

7

SOFTBANK CORP. CONSOLIDATED FINANCIAL REPORTFor the three-month period ended June 30, 2008

[Fixed-Line Telecommunications]<<Summary of Segment Results>>
Net sales¥88,453 million (2.2% decrease year-on-year)

Operating income¥798 million

Total installed lines for the OTOKU Line service: 1,443,000 (at the end of June 2008)
White Line 24 launched, providing free domestic calls between OTOKU Line and SoftBank mobile phones<Analysis of Results>
Net sales decreased by ¥2,033 million year-on-year, or 2.2%, to ¥88,453 million. Operating income totaled ¥798
million, marking a turnaround from the previous year’s ¥111 million operating loss.

Revenue at core company

SOFTBANK TELECOM Corp. (hereinafter ‘SOFTBANK TELECOM’) from existing telecommunications services,
excluding the OTOKU Line direct connection fixed-line voice service, declined, but profitability has been maintainedsince the second quarter of the previous fiscal year because of lower equipment utilization fees, including accesscharges.
<Quarterly Results>(Millions of yen)
Fiscal year ended March 31, 2008

Fiscal year ending March 31, 2009

Q1

Q2

Q3

Q4

Q1

Sales

90,486

90,98689,97999,28888,453———Operatingincome (loss)

(111)

460

1,375

1,615

798

—

—

—

Q2

Q3

Q4

<Overview of Operations>
SOFTBANK TELECOM is utilizing its core OTOKU Line direct connection fixed-line voice service to expand its
corporate customer base. The number of OTOKU Line lines installed at the end of the period stood at 1,443,000, for
an increase of 186,000 during the period. Corporate customers constituted 72.3% of the total number of lines, andthis figure continues to rise.
SOFTBANK TELECOM acquired additional shares of SOFTBANK TELECOM PARTNERS Corp.*6 (hereinafter‘SOFTBANK TELECOM PARTNERS’) in April 2008, making it a subsidiary, as a means of strengthening sales tosmall and medium-sized companies. In June, the White Line 24 discount service was launched to enhance synergies
with the Mobile Communications segment and strengthen the corporate business.

This service provides freedomestic voice calls between subscribers of SOFTBANK TELECOM’s OTOKU Line 24 service and SoftBank
mobile phones (White Plan).
*6. On July 1, 2008, JAPAN TELECOM Invoice Co., Ltd. changed its name to SOFTBANK TELECOM PARTNERS Corp.

8

SOFTBANK CORP. CONSOLIDATED FINANCIAL REPORTFor the three-month period ended June 30, 2008

[Internet Culture]<<Summary of Segment Results>>
Net sales¥62,326 million (18.1% increase year-on-year)

Operating income¥30,542 million (12.5% increase year-on-year)<Analysis of Results>
Net sales increased by ¥9,530 million year-on-year, or 18.1%, to ¥62,326 million.

Operating income increased by¥3,394 million, or 12.5%, to ¥30,542 million.
<Quarterly Results>(Millions of yen)
Fiscal year ended March 31, 2008

Fiscal year ending March 31, 2009

Q1

Q2

Q3

Q4

Q1

Sales

52,796

57,623

66,50570,71762,326———

Operatingincome27,14827,76628,864

31,45730,542

—

—

—

Q2

Q3

Q4

<Overview of Operations>
In the advertising business of Yahoo Japan Corporation, the core company in the segment, sales of behavioral targeting
advertising that targets users according to their past history of Internet usage surged year on year. Sales of thebusiness’s core product, Prime Display, also increased.

Paid search advertising sales also rose substantiallyyear-on-year due to the consolidation of Overture K.K. and greater use of its services by non Yahoo Japan Corporation
Group companies due to the open partnership policy.
Efforts in Yahoo! Shopping and Yahoo! Auctions to increase the number of merchant stores were continued during theperiod. As a result, at the end of the period, the number of merchant stores registered on Yahoo! Shopping and Yahoo!
Auctions totaled 32,061, expanding by 3,693 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 breaking through the 7 million mark during the period for the first time.

[e-Commerce]<<Summary of Segment Results>>
Net sales¥62,459 million (1.3% increase year-on-year)

Operating income¥1,009 million (13.5% decrease year-on-year)<Analysis of Results>
Net sales increased by ¥798 million year-on-year, or 1.3%, to ¥62,459 million. Operating income decreased by¥157 million, or 13.5%, to ¥1,009 million.

9

SOFTBANK CORP. CONSOLIDATED FINANCIAL REPORTFor the three-month period ended June 30, 2008

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

Fiscal year ending March 31, 2009

Q1

Q2

Q3

Q4

Q1

Sales

61,66063,812

69,63475,61562,459———Operatingincome

1,167

933

809

246

1,009

—

—

—

Q2

Q3

Q4

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

Sales ofmobile phone accessories and personal computer software under the SoftBank SELECTION brand, launched in
November 2007, began to contribute to earnings.

On the other hand, there was limited growth in sales ofhigh-margin software to corporate customers and this led to an operating income remaining at the same level.
SOFTBANK BB will continue to pursue additional synergies with Group telecommunications companies as itstrengthens its sale of mobile phone accessories and corporate business.

[Others]<Analysis of Results>
Net sales decreased by ¥3,053 million year-on-year, or 12.3%, to ¥21,818 million.

The operating loss was ¥758

million, compared with the previous year’s operating loss of ¥689 million.
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 firstquarter.
<Quarterly Results>(Millions of yen)
Fiscal year ended March 31, 2008

Fiscal year ending March 31, 2009

Q1

Q2

Q3

Q4

Q1

Sales

24,871

26,90723,18424,90921,818———Operatingincome (loss)

(689)

38

(2,617)(1,852)

(758)

—

—

—

10

Q2

Q3

Q4

SOFTBANK CORP. CONSOLIDATED FINANCIAL REPORTFor the three-month period ended June 30, 2008

2. Qualitative Information on Consolidated Financial Position<<Summary of the Consolidated Financial Position>>
Total assets¥4,428,635 million(2.9% decrease year-on-year)

Total liabilities¥3,583,973 million(3.4% decrease year-on-year)¥844,662 million(0.5% decrease year-on-year)

EquityCash flows from operating activities¥52,899 million increase

Cash flows from investing activities¥90,769 million decrease

Cash flows from financing activities¥32,254 million decrease

Balance of cash and cash equivalents¥419,498 million(¥70,768 million decrease from theend of March 2008)

1. Assets, Liabilities and Equity
Assets, liabilities, and equity at the end of the period were as follows:(1) Current Assets
Current assets decreased by ¥118,556 million from the end of the previous fiscal year, to ¥1,464,188 million.

This

was mainly because of declines of ¥71,714 million in cash and deposits, ¥38,092 million in notes and accounts
receivable-trade primarily at three telecommunications companies, SOFTBANK MOBILE, SOFTBANK BB, and
SOFTBANK TELECOM and ¥15,385 million in deferred tax assets.
Installment sales of mobile handsets at the Mobile Communications segment remained strong, and SOFTBANKMOBILE procured cash by securitizing a portion of these installment sales receivables. Total cash procured during
the period came to ¥45,343 million (see “(2) Major Financing Activities” on page 14). These procured funds wererecorded as borrowings and entrusted installment sales receivables were recorded as accounts receivable-trade.

(2) Fixed Assets<Property and Equipment, net>
Property and equipment, net declined by ¥11,655 million from the end of the previous fiscal year, to ¥1,017,609
million.

This was primarily due to depreciation.

<Intangible Assets>
Intangible assets increased by ¥22,114 million from the end of the previous fiscal year, to ¥1,260,424 million.

This

came primarily from a ¥25,253 million increase in goodwill, 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.
<Investments and Other Assets>
Investments and other assets decreased by ¥21,786 million from the end of the previous fiscal year, to ¥683,976
million.

This was primarily the result of a ¥37,293 million decrease in investments securities associated with the

decline in share price of Yahoo! Inc. in the U.S.

11

SOFTBANK CORP. CONSOLIDATED FINANCIAL REPORTFor the three-month period ended June 30, 2008

(3) Current Liabilities
Current liabilities decreased by ¥52,167 million from the end of the previous fiscal year, to ¥1,188,536 million.
Although short-term borrowings increased by ¥71,997 million, there were declines of ¥78,219 million in accounts
payable-other and accrued expenses, ¥24,948 million in notes and accounts payable-trade, ¥16,517 million in income
taxes payable, and ¥12,500 million in corporate bonds scheduled for redemption within one year.
The increase in short-term borrowings consisted primarily of ¥14,564 million procured by SOFTBANKMOBILE via the securitization of installment sales receivables, and borrowings by the Company increased by¥67,500 million.

(4) Long-term Liabilities
Long-term liabilities decreased by ¥74,035 million from the end of the previous fiscal year, to ¥2,395,436 million,
mainly because of a ¥47,589 million decrease in long-term debt.
The balance of long-term debt procured by SOFTBANK MOBILE through the whole business securitization
financing scheme decreased by ¥14,544 million from the end of the previous fiscal year, to ¥1,261,944 million.

(5) Equity
Equity decreased by ¥4,062 million from the end of the previous fiscal year, to ¥844,662 million. While ¥2,701
million in dividend payments from retained earnings were recorded, net income for the period was ¥19,368 million,
and accumulate deficit improved by ¥16,519 million.

The deferred gain on derivatives under hedge accounting

improved by ¥17,771 million, to ¥5,948 million, but there were decreases of ¥18,179 million in the unrealized gain
on available-for-sale securities, ¥17,387 million in minority interests, and ¥3,013 million in foreign currencytranslation adjustments.

12

SOFTBANK CORP. CONSOLIDATED FINANCIAL REPORTFor the three-month period ended June 30, 2008

2. Cash FlowsNet cash provided by operating activities was ¥52,899 million, net cash used in investing activities was ¥90,769
million, and net cash used in financing activities was ¥32,254 million.

As a result, cash and cash equivalents at theend of the period totaled to ¥419,498 million, a decrease of ¥70,768 million from the end of the previous fiscal year.

(1) Cash Flow from Operating Activities
Net cash provided by operating activities was ¥52,899 million. Income before income taxes and minority interests
for the period totaled ¥57,354 million. As non-cash items, depreciation and amortization of ¥56,999 million andamortization of goodwill of ¥15,185 million were recorded. Other adjustment items included in income before
income taxes and minority interests for the period included interest expense of ¥28,402 million.

Operating cash

flow was positively impacted by a ¥39,836 million decrease in receivables-trade, but there was a negative impact
from a ¥24,322 million decrease in payables-trade. Interest paid was ¥27,221 million, and income taxes paid byYahoo Japan Corporation and other entities were ¥33,409 million.

(2) Cash Flow from Investing Activities
Net cash used in investing activities was ¥90,769 million. As a result of capital expenditure, mainly in thetelecommunications segments, purchase of property and equipment and intangibles totaled ¥71,553 million.
SOFTBANK TELECOM’s acquisition of additional shares of SOFTBANK TELECOM PARTNERS, making
SOFTBANK TELECOM PARTNERS a consolidated subsidiary of SOFTBANK TELECOM, resulted in a major
outlay of ¥17,530 million for acquisition of interests in subsidiaries newly consolidated. In addition, purchases ofmarketable and investment securities totaled ¥17,207 million, while proceeds from sale of marketable and investment
securities were ¥10,225 million.

(3) Cash Flow from Financing Activities
Net cash used in financing activities was ¥32,254 million. Short-term borrowings, net, grew by ¥57,234 million,
and proceeds from long-term debt were ¥45,343 million. Mainly in the Mobile Communications segment, proceedsof ¥16,334 million were recorded from the sale and lease back of equipment newly acquired. However, ¥81,660
million of long-term debt was repaid, and there was a ¥33,464 million outlay for purchase of treasury stock ofsubsidiaries in consolidation mainly at Yahoo Japan Corporation and other entities. In addition, repayment for thelease obligations and bond redemptions totaled ¥17,413 million and ¥14,041 million, respectively.

13

SOFTBANK CORP. CONSOLIDATED FINANCIAL REPORTFor the three-month period ended June 30, 2008

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

Investor Company

Net Cash Outflow

Voting Rights

SOFTBANK TELECOM
PARTNERS Corp.

SOFTBANK TELECOM Corp.

¥17,204 million （*）

100.0%Oak Pacific Interactive

SOFTBANK CORP.

¥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 this period were as follows:
Item
Stock buyback by
subsidiaries in
consolidation

Company NameYahoo Japan
Corporation

Details
Implementation of the stockbuyback by Yahoo Japan
Corporation

Securitization ofreceivables

SOFTBANKMOBILE Corp.

Increase or
decrease of debt
and others

SOFTBANK CORP.

Procurement of funds
totaling ¥45,343 million
accompanying securitizationof mobile phone installment
sales receivables (recorded
as borrowings)
Increase ¥49,500 million(net)

Bond redemption

Implementation ofcapital investment
through financelease agreementswith ownershiptransfer

SOFTBANKMOBILE Corp.
SOFTBANKTELECOM Corp.
Yahoo Japan
Corporation
SOFTBANK CORP.

SOFTBANKMOBILE Corp.

Decrease ¥14,544 million

Summary
Buyback Period:
June 2, 2008 to June 30, 2008
(Trade date basis)
Total amount of buyback: ¥37,821 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
Increase in borrowings by ¥47,500 million(net) and Increase in commercial paper by¥2,000 million
Repayment of funds raised via the wholebusiness securitization financing scheme

Decrease ¥5,800 million
Decrease ¥10,000 million
20th Unsecured Straight
Bond
Implementation of capital
investment for mobile
communications utilizing
lease agreements

14

Date of redemption: June 9, 2008
Aggregate amount of redemption:¥12,500 million
Funds procured during this period :¥15,980 million

SOFTBANK CORP. CONSOLIDATED FINANCIAL REPORTFor the three-month period ended June 30, 2008

3. Qualitative Information on Forecast of Consolidated Results
The Group has introduced a range of price plans and discount services to meet diverse customer needs in its coretelecommunications businesses, most notably installment sales for mobile handsets at the Mobile Communications
business. Given the difficulty of estimating customer trends in light of these sales and pricing methods that are
unprecedented in the industry, it is difficult to make meaningful performance forecasts.
The SOFTBANK Group will therefore endeavor to proactively provide a higher level of information disclosure
to shareholders and investors by announcing consolidated performance forecasts when it becomes possible to provide
meaningful estimates.

15

SOFTBANK CORP. CONSOLIDATED FINANCIAL REPORTFor the three-month period ended June 30, 2008

4. The SOFTBANK GroupAs of June 30, 2008, the Group is comprised of the Company (pure holding company) and the following ninebusiness segments. 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

5

2

Broadband Infrastructure

53

Fixed-line Telecommunications

4-

Internet Culture

14

19

e-Commerce

7

4

Others

70

47

105

75

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 ofcontent etc. (Core company: 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)
and consumer-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 disbandedin the first quarter.

［Listed Companies］
The following SOFTBANK subsidiaries are listed on domestic stock exchanges as of June 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

16SOFTBANK CORP. CONSOLIDATED FINANCIAL REPORTFor the three-month period ended June 30, 2008

5. Others(1) Significant Changes in Scope of Consolidation (Changes in Scope of Consolidation of Special-Purpose Companies)
There are no significant changes in scope of consolidation as of June 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 June 30, 2008. The consolidated financial
statements for the period ended June 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, wasadopted for the period ended June 30, 2008. Due to the application of the accounting standard, inventories aremeasured by primarily net selling value determined by the moving-average method. The effect of this change is notmaterial.
[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 June 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.

17

SOFTBANK CORP. CONSOLIDATED FINANCIAL REPORTFor the three-month period ended June 30, 2008

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

As ofMarch 31, 2008

AmountAmountASSETS
Current assets:
Cash and deposits
Notes and accounts receivable - tradeMarketable securities¥419,446¥491,161

849,630

887,723

6,533

4,928

Merchandise

59,348

58,118Deferred tax assets

90,465

105,850

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

116,177

103,351(77,412)(68,388)

1,464,188

1,582,744

Buildings and structures

74,22875,781

Telecommunications equipment

742,604

744,037

Telecommunications service lines

84,436

86,062

Land

22,54323,442

Construction in progress

40,26345,576

Other

53,53354,364

1,017,609

1,029,265

Goodwill

999,689

974,435

Software220,989

224,180

Other intangibles

39,74539,693

1,260,424

1,238,309

427,704

464,997

130,443

126,887

130,352

118,491(4,522)683,976
2,962,010(4,613)705,763
2,973,337

2,436

2,818

¥4,428,635¥4,558,901

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

18

SOFTBANK CORP. CONSOLIDATED FINANCIAL REPORTFor the three-month period ended June 30, 2008

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

As ofMarch 31, 2008

AmountAmountLIABILITIES AND EQUITYCurrent liabilities:
Accounts payable-trade
Short-term borrowings¥162,330¥187,279

520,569

448,571

Commercial paper

2,000

-

Current portion of corporate bonds

40,04052,540Accounts payable - other and accrued expenses

286,231364,450

Income taxes payable

18,56135,079Current portion of lease obligations

74,497

69,770

Other current liabilities

84,30583,012

Total current liabilities

1,188,536

1,240,704

Corporate bonds

443,699445,211Long-term debt

1,539,055

1,586,645

Deferred tax liabilities

42,597

41,977

Liability for retirement benefits

15,923

16,158

Allowance for point mileage

44,78543,809Lease obligations

240,901

241,496

Other liabilities

68,474

94,172

Total long-term liabilities

2,395,436

2,469,472

Total liabilities

3,583,973

3,710,176

187,510

187,4220-Additional paid-in capital

211,828

211,740

Accumulated deficit(75,224)(91,744)

Less: Treasury stock

(207)

(206)

Total shareholders’ equity

323,908

307,213

Unrealized gain on available-for-sale securities

62,73480,914

Deferred gain (loss) on derivatives under hedge accounting

5,948(11,823)

Foreign currency translation adjustments

4,424

7,437

Total valuation and translation adjustments

73,10776,529171

120

Minority interests

447,474

464,862

Total equity

844,662

848,725¥4,428,635¥4,558,901

Long-term liabilities:

Equity:Common stock
Cash receipts for new stock subscriptions

Stock acquisition rights

Total liabilities and equity

19

SOFTBANK CORP. CONSOLIDATED FINANCIAL REPORTFor the three-month period ended June 30, 2008

(2) Quarterly Consolidated Statements of Income(Millions of yen; amounts less than one million yen are omitted.)First quarter
April 1,2008 toJune 30, 2008
AmountNet sales
Cost of sales
Gross Profit¥647,255

Selling, general and administrative expenses

226,842

335,326
311,929

Operating income

85,086

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

361
110
1,552
2,024

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

28,402
1,605
2,831
32,839Ordinary income

54,272Gain on sale of investment securities

2,464

Dilution gain from changes in equity interest

2,209

Other special income
Special income

609
5,283

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

1,313
840
47
2,201
57,354

Income taxes:
Current

11,741

Deferred

14,533

Total income taxes

26,275

Minority interests in net income
Net income

11,710¥19,368

20

SOFTBANK CORP. CONSOLIDATED FINANCIAL REPORTFor the three-month period ended June 30, 2008(3) Quarterly Consolidated Statements of Cash Flows(Millions of yen; amounts less than one million yen are omitted.)First quarter
April 1,2008 toJune 30, 2008
Cash flows from operating activities:
Income before income taxes and minority interests¥57,354

Adjustments for:
Depreciation and amortization

56,999Amortization of goodwill

15,185Equity in loss of affiliated companies

1,605

Dilution gain from changes in equity interest, net(2,209)Valuation loss on investment securities

1,313

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

840

Foreign exchange gain, net(2,470)(248)

Interest and dividend income(716)Interest expense

28,402

Changes in operating assets, and liabilities
Decrease in receivables-trade

39,836

Decrease in payables-trade(24,322)

Other, net(58,847)
Sub-total

112,722

Interest and dividends received

808Interest paid

(27,221)

Income taxes paid

(33,409)

Net cash provided by operating activities

52,899- Continued -21

SOFTBANK CORP. CONSOLIDATED FINANCIAL REPORTFor the three-month period ended June 30, 2008

Quarterly Consolidated Statements of Cash Flows (Continued)(Millions of yen; amounts less than one million yen are omitted.)First quarter
April 1,2008 toJune 30, 2008
Cash flows from investing activities:
Purchase of property and equipment, and intangibles¥ (71,553)

Purchase of marketable and investment securities
Proceeds from sale of marketable and investment securities(17,207)

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

10,225

Other, net

5,296

Net cash used in investing activities(90,769)

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

57,234

Increase in commercial paper, net

2,000

Proceeds from long-term debt

45,343

Repayment of long-term debt

(81,660)

Redemption of bonds(14,041)

Exercise of warrants

175

Proceeds from issuance of shares to minority shareholders

511

Cash dividends paid

(2,026)

Cash dividends paid to minority shareholders(4,086)

Purchase of treasury stock of subsidiaries in consolidation(33,464)

Proceeds from sale and lease back of equipment newly acquired

16,334

Repayment of lease obligations(17,413)

Other, net(1,160)Net cash used in financing activities(32,254)

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

999(69,124)

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

126

Decrease in cash and cash equivalents due to exclusion of previously consolidated subsidiaries(1,770)Cash and cash equivalents, beginning of the period

490,266

Cash and cash equivalents, end of the period¥419,498

22

SOFTBANK CORP. CONSOLIDATED FINANCIAL REPORTFor the three-month period ended June 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 June 30,2008. The consolidated financial
statements for the period ended June 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 in “Qualitative Information/Financial Statements 5. Others” are excluded.)
1. Changes in scope of consolidation(1) Changes in scope of consolidation are as follows:<Increase>
5 companies
Significant changes:
SOFTBANK TELECOM PARTNERS Corp.
<Decrease>
9 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:
105 companies
2. Changes in scope of equity method(1) Changes in scope of equity method are as follows:<Increase>
11 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: 71 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.

23

SOFTBANK CORP. CONSOLIDATED FINANCIAL REPORTFor the three-month period ended June 30, 2008

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

As of June 30, 2008
870,927

million yen

837,286

million yen

2. Contingent liability
Based on debt assumption agreements with financial institutions, SOFTBANK MOBILE Corp. has transferred its debt
repayment obligation for straight bonds previously issued to financial institutions. The bonds and payments to financial
institutions incurred from transferring its debt repayment obligation for the bonds are eliminated in the Company’s consolidatedbalance sheets.
However, under the terms of the indenture, SOFTBANK MOBILE Corp. will continue to be responsible for payments on thebonds until maturity or redemption of the bonds.

Subject Bonds

As of March 31, 2008

As of June 30, 2008

First Series Unsecured Bond-

25,000Third Series Unsecured Bond

25,00025,000Fifth Series Unsecured Bond

25,00025,000Seventh Series Unsecured Bond

25,00025,00075,000 million yen

100,000 million yen

Total

3. Assets pledged as collateral(1) For future lease liabilities
As of June 30, 2008

As of March 31, 2008

Assets pledged as collateral:
Notes and accounts receivable - trade

9,858

million yen

10,181

million yen

In addition to above, amounts eliminated in the consolidated balance sheets as an intercompany balance:
Notes and accounts receivable - trade13,468 million yen

13,787 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:

Future lease liabilities(finance lease accounted for as operating lease transactions)24

As of June 30, 2008

As of March 31, 2008

7,192

8,121

million yen

million yen

SOFTBANK CORP. CONSOLIDATED FINANCIAL REPORTFor the three-month period ended June 30, 2008

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

As of March 31, 2008

Assets pledged as collateral:
Cash and deposits

196,985

220,801

Notes and accounts receivable - trade331,505

330,157

Other current assets

010

Buildings and structures

13,643

13,872

Telecommunications equipment

257,386

268,494

Telecommunications service lines

179

170

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

15,595

15,576

114,724

152,638

-

240

Total

930,017

million yen

As of June 30, 2008

1,001,961

million yen

As of March 31, 2008

Secured liabilities:
Accounts payable - trade968

Short-term borrowings

3,955

4,724

1,371,762

1,378,900

Long - term debt
Total

1,376,686

1,447

million yen

1,385,072

million yen

SOFTBANK MOBILE Corp. 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 ¥1,261,944 million) resulted from the refinancing theloan accompanying the acquisition of SOFTBANK MOBILE Corp., in addition to the assets pledged as collateral above.
The funds procured through the securitization of installment sales receivables of SOFTBANK Mobile Corp., in theamount of ¥180,436 million and ¥42,696 million, are recorded as “Short-term borrowings” and “Long-term debt,”
respectively, as of June 30, 2008. The installment sales receivables, equivalent to ¥223,133 million which is the amountof senior trust certificate of the securitized installment sales receivables for this procurement, is included in “Notes andaccount receivable-trade,” along with the amount of trust beneficial certificate held by the SOFTBANK MOBILE Corp.
Trustee procured the funds through asset backed loans which are backed by these installment sales receivables.
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 July 3, 2008, the Company issued 600 new shares, and ¥0 million and ¥0 million are recorded as “Common stock” and“Additional paid-in capital”, respectively.

25

SOFTBANK CORP. CONSOLIDATED FINANCIAL REPORTFor the three-month period ended June 30, 2008

(Quarterly Consolidated Statements of Income)
1. Selling, general and administrative expenses

Sales commission

Three-month period ended
June 30, 2008
60,305 million yen

Provision for allowance for doubtful accounts

9,791

2. Unrealized loss on valuation of investments and gain on sale of investments at subsidiaries in the United States of America,
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 gain 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 gain on sale of investments at subsidiaries in the U.S.,
net” are as follows:
Three-month period ended
June 30, 2008
Unrealized loss on valuation of investment
at subsidiaries in the U.S.,net
Gain on sale of investments
at subsidiaries in the U.S.,net
Total(2,256)1,416(840) million yen(Quarterly Consolidated Statements of Cash Flows)
1. Reconciliation of cash and cash equivalents to the amounts presented in the accompanying consolidated balance sheets
As of June 30, 2008
Cash and deposits

419,446

Marketable securities

6,533

Time deposits with original maturity over three months(1,200)Stocks and bonds with original maturity over three months(5,281)

Cash and cash equivalents

419,498

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 Corp. purchases telecommunications equipment for the purpose of assembly, installation andinspection, SOFTBANK MOBILE Corp. sells the equipment to lease companies for sale and lease back purpose. The leased
asset and lease obligation are recorded in the consolidated balance sheets.
The cash outflows from the purchase of the equipment from vendors are included in “Purchase of property and equipment, andintangibles” and the cash inflows from the sale of the equipment to lease companies are included in “Proceeds from sale andlease back of equipment newly acquired.”26

SOFTBANK CORP. CONSOLIDATED FINANCIAL REPORTFor the three-month period ended June 30, 2008

(Leases)
1. 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] Calculation method used to determine the amount equivalent to depreciation
The straight-line method is adopted assuming no residual value except in cases where the residual value is guaranteed in thelease contract.
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:Telecommunications equipment andtelecommunications service lines
Acquisition cost
Accumulated depreciation
Accumulated impairment loss

As of June 30, 2008

As of March 31, 2008

178,120(69,970)

179,479(66,202)(30,521)77,628Net leased property
Buildings and structures
Acquisition cost
Accumulated depreciation
Accumulated impairment loss

million yen

38,981
17,368(6,381)(1,112)
9,873
9,464(3,722)(205)
5,537
251,957(88,098)(31,839)
132,020

27

million yen

47,005(7,429)-47,004(8,023)-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(30,521)82,755

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 three-month period ended June 30, 2008

Long-term prepaid expenses relating to a lease contract, in which the contract term and payment term are different, for theperiod ended June 30, 2008 and March 31, 2008 are ¥17,010 million and ¥15,053 million, respectively and are included
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 June 30, 2008

Due within one year
Due after one year
Total

32,246
133,771
166,017

Balance of allowance for impairment loss on
leased property

19,853As of March 31, 2008

million yen

32,482
141,179
173,662

million yen

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:
Three-month period ended

Fiscal year ended

June 30, 2008

March 31, 2008

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

10,638million yen

44,329

1,683

5,387

7,428
2,467
-

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 except in cases where the residual value is guaranteed in the lease contract.
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.
2. Non-cancelable operating lease transactions(As a lessee)
The future lease payments under non-cancelable operating leases at the end of each period:
As of June 30, 2008

Due within one year
Due after one year

4,534
24,476

Total

29,01028

As of March 31, 2008

2,959
13,126
million yen

16,086

million yen

SOFTBANK CORP. CONSOLIDATED FINANCIAL REPORTFor the three-month period ended June 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 June 30, 2008
Investment
Carrying
Differences
Cost
Amount(1)(2)

2.

Equity securities
OthersTotal

31,543
5,062
36,606140,209
5,057
145,266

108,665(5)
108,660

As of March 31, 2008
Investment
Carrying
Differences
AmountCost
29,219171,676
142,456
1,320
1,318
(2)
30,540172,994
142,454

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

As of June 30, 2008

As of March 31, 2008

Carrying Amounts

Carrying Amounts

Foreign debt securities

¥700

¥700

Debt securities

398

368

Equity securities

94,51791,446

Investments in limited partnerships

6,570

6,725

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

Money Management Fund

3.

-

2,519

Foreign debt securities

794

958

Others

928

1,058

Total

¥103,909¥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 June 30, 2008 andMarch 31, 2008 are as follows:
As of June 30, 2008
Carrying amounts of investment securities at fair value recorded in consolidated balance sheets:

23,682 million yen

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

26,042 million yen

29

SOFTBANK CORP. CONSOLIDATED FINANCIAL REPORTFor the three-month period ended June 30, 2008

(Per Share Data)
1.

Shareholders’ equity per share
Three-month period ended

Fiscal year ended

June 30, 2008

March 31, 2008

Shareholders’ equity per share (yen)¥367.39

2. Net income per share
Three-month period ended
June 30, 2008

Net income per share - primary (yen)¥17.92

Net income per share – diluted (yen)

17.07

3. Basic data for computation of the per share data
Three-month period ended

Basic data for computation of the per share data

June 30, 2008

1. Net income (in millions of yen)

19,368

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)

19,3681,080,540

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)

389
(10)

–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 year30

378
76,275-¥355.15

SOFTBANK CORP. CONSOLIDATED FINANCIAL REPORTFor the three-month period ended June 30, 2008

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

Internet

Elimination

MobileBroadband

Communications

Infrastructure

Telecommunications(1) Customers¥370,692¥58,791¥78,128¥61,551¥59,670¥18,420¥647,255¥--¥647,255(2) Inter-segment

1,893

1,336

10,324

774

2,788

3,397

20,515(20,515)-

Total

372,585

60,12788,45362,32662,45921,818

667,771(20,515)647,255

Operating income (loss)

44,273

10,475798

30,542

1,009

(758)

86,341(1,254)85,086e-Commerce

Others

Total

Consolidated

Cultureor 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 16.
2. Geographic segment information
For the three-month period ended June 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¥643,960¥297¥2,997¥647,255¥-¥647,255

119

-

-

119

(119)

-

Total

644,080

297

2,997

647,375(119)647,255

Operating income (loss)

87,097

(286)

(68)

86,741(1,655)85,086(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 three-month period ended June 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.

31

SOFTBANK CORP. CONSOLIDATED FINANCIAL REPORTFor the three-month period ended June 30, 2008

[For Reference]
Quarterly Consolidated Financial Statements for the three-month period ended June 30, 2007
(1) Summary of Quarterly Consolidated Statements of Income(Millions of yen; amounts less than one million yen are omitted.)First quarter
April 1,2007 toJune 30,2007
AmountNet sales
Cost of sales
Gross Profit¥663,084

Selling, general and administrative expenses

231,442352,896
310,188

Operating income

78,746

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

608
543
1,440

Other non-operating income
Non-operating income

1,939Interest expense
Other non-operating expenses
Non-operating expenses

26,9604,531
5,162
32,123

Ordinary income

51,154Gain on sale of investment securities

4,602

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

2,866
65
1,981
9,514
169

Other special losses
Special loss

2,096
2,266

Income before income taxes and minority interests

58,403

Income taxes:
Current

2,826

Deferred

20,065

Total income taxes

22,892

Minority interests in net income
Net income¥25,130

10,38032

SOFTBANK CORP. CONSOLIDATED FINANCIAL REPORTFor the three-month period ended June 30, 2008

(2) Summary of Quarterly Consolidated Statements of Cash Flows(Millions of yen; amounts less than one million yen are omitted.)First quarter
April 1,2007 toJune 30,2007

Cash flows from operating activities:
Income before income taxes and minority interests¥58,403

Adjustments for:
Depreciation and amortization

53,533

Amortization of goodwill

14,426Equity in earnings of affiliated companies(1,440)

Dilution gain from changes in equity interest, net(2,790)

Valuation loss on investment securities

169

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(65)

Foreign exchange gain, net(4,884)(829)

Interest and dividend income(854)

Interest expense

26,960Changes in operating assets, and liabilities
Increase in receivables-trade(44,016)

Decrease in payables-trade(13,364)

Other, net(57,333)
Sub-total

27,914

Interest and dividends received

704

Interest paid

(26,326)

Income taxes paid

(29,770)

Net cash used in operating activities(27,478)- Continued -33

SOFTBANK CORP. CONSOLIDATED FINANCIAL REPORTFor the three-month period ended June 30, 2008

Summary of Quarterly Consolidated Statements of Cash Flows (Continued)(Millions of yen; amounts less than one million yen are omitted.)First quarter
April 1,2007 toJune 30,2007
Cash flows from investing activities:
Purchase of property and equipment, and intangibles¥ (92,916)

Purchase of marketable and investment securities
Proceeds from sale of marketable and investment securities
Proceeds from sale of interests in consolidated subsidiaries(14,997)

Other, net

14,311
1,012(18,929)

Net cash used in investing activities(111,519)

Cash flows from financing activities:
Decrease in short-term borrowings, net(46,077)

Decrease in commercial paper, net(5,000)

Proceeds from long-term debt

88,161

Repayment of long-term debt

(31,916)

Proceeds from issuance of bonds

89,483

Exercise of warrants

669

Proceeds from issuance of shares to minority shareholders

6,023

Cash dividends paid

(1,983)

Cash dividends paid to minority shareholders(3,497)Purchase of treasury stock of subsidiaries in consolidation(126)

Proceeds from sale and lease back of equipment newly acquired

149,864

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

Repayment of lease obligations(7,047)

Other, net(72)

Net cash provided by financing activities

218,480

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

80,978Decrease in cash and cash equivalents due to exclusion of previously consolidated subsidiaries

(771)

1,495

Cash and cash equivalents, beginning of the period

377,520

Cash and cash equivalents, end of the period¥457,727

34

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

Broadband

Internet

Elimination
e-Commerce

Others

Total

Consolidated

Communications

Infrastructure

Telecommunications

Cultureor Corporate(1) Customers¥389,037¥64,326¥77,851¥51,893¥58,270¥21,705¥633,084¥-¥663,084(2) Inter-segment

2,630

1,420

12,634

902

3,390

3,166

24,145(24,145)-

Total

391,668

65,74790,486

52,796

61,66024,871

687,230(24,145)

663,084

Operating income (loss)

43,528

8,665

(111)

27,148

1,167

(689)

79,709(962)

78,746

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,
and provision 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) andconsumer-related e-commerce (B2C) etc.
Others: Broadmedia, Technology Services, Media & Marketing, Overseas funds, and other businesses
2. Geographic segment information
For the three-month period ended June 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¥659,119¥464¥3,500¥663,084¥-¥663,084

112

-

90

203

(203)

-

Total

659,231

464

3,591

663,288(203)

663,084

Operating income (loss)

80,675

(304)

(168)

80,202(1,455)78,746(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 three month period ended June 30, 2007 is omitted because the total overseas sales are less than
10% of total consolidated sales.

35