This English translation of the financial report was prepared for reference purposes only and is qualified in its entirety by the original
Japanese version. The financial information contained in this report is derived from our unaudited consolidated financial statements
appearing in item 6 of this report.

SOFTBANK CORP.
CONSOLIDATED FINANCIAL REPORTFor the nine-month period ended December 31, 2009
Tokyo, February 2, 2010

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%Nine-month period ended
December 31, 2009

¥2,045,304

3.2¥366,319

33.4¥281,187

61.1¥94,86163.0

Nine-month period ended
December 31, 2008

¥1,982,262-¥274,690-¥174,494-¥58,182-

Net income
per share－basic(yen)

Net income
per share－diluted(yen)

Nine-month period ended
December 31, 2009¥87.68¥84.55Nine-month period ended
December 31, 2008

¥53.84¥51.29(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 December 31, 2009

¥4,359,176¥943,692

10.6¥428.84

As of March 31, 2009

¥4,386,672¥824,798

8.5¥346.11

Note: Shareholders’equity (consolidated)
As of December 31, 2009:
As of March 31, 2009:¥464,141 million¥374,094 million

2. Dividends(Record date)

First quarter

Fiscal year ended
March 31, 2009
Fiscal year ending
March 31, 2010
Fiscal year ending
March 31, 2010
(Forecasted)

Second quarter

Dividends per share
Third quarter

Fourth quarter

Total

(yen)

(yen)

(yen)

(yen)

(yen)

-

0.00

-

2.50

2.50

-

0.00

5.00

5.00

Revision of forecasts on the dividends: No1

3.

Forecasts on the consolidated operation results for the fiscal year ending in March 2010 (April 1, 2009 – March 31, 2010)(Percentages are shown as year-on-year changes)(Millions of yen)

Operating income
Full financial year

¥420,000

16.9(%)

Revision of forecasts on the consolidated operation results: No

4. Others(1) Significant Changes in Scope of Consolidation (Changes in Scope of Consolidation of Specified Subsidiaries):No(2) Application of simple accounting methods or special accounting methods for preparation for the consolidated financial
statements:
No(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 Consolidated Financial Statements”)[1] Changes due to revisions in accounting standards: No[2] Changes other than those in [1]: No(4) Number of shares issued (Common stock)[1] Number of shares issued (including treasury stock):
As of December 31, 2009:
As of March 31, 2009:

1,082,485,878 shares
1,081,023,978 shares[2] Number of treasury stock:
As of December 31, 2009:
As of March 31, 2009:

173,175 shares
169,204 shares[3] Weighted average number of common stock:
As of December 31, 2009:
As of December 31, 2008:

1,081,880,972 shares
1,080,653,361 shares* Note to forecasts on the consolidated operating results and other items
The forecast figures are estimated based on the information which SOFTBANK CORP. is able to obtain at the present point and assumptions which
are deemed to be reasonable. However, actual results may be different due to various factors.
Forecasts on the consolidated operating income for fiscal year ending March 31, 2011 are disclosed. Please refer to page 20.

2

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the nine-month period ended December 31, 2009

Qualitative Information / Financial Statements
1.

Analysis of Results of Operations(1) Consolidated Results of Operations<Overview of results for the period ended December 31, 2009 (the nine-month period from April 1, 2009
to December 31, 2009)>
Reflecting steady performance of its Mobile Communications business, the Group1 achieved a ¥63,041 million(3.2%) increase in consolidated net sales compared with the same period of the previous fiscal year (hereafter“year-on-year”) to ¥2,045,304 million, with a ¥91,628 million (33.4%) increase in operating income to ¥366,319
million for the nine-month period ended December 31, 2009 (hereafter “the period”). This growth in consolidated
revenue and profit was driven by an increase in the number of mobile subscribers and the increased use of data
telecommunications by customers at the Mobile Communications segment.
The Group continues to reinforce its cash-flow-oriented management, as it made steady progress during the period inachieving its previously stated targets of (1) generating a total of at least ¥1 trillion2 in free cash flow3 over the next
three years (through the fiscal year ending March 2012) and (2) reducing net interest-bearing debt4 by half over the
next three years and to zero in six years (by the end of the fiscal year ending March 2015).
Notes:
1. Definition of terms: as used in this consolidated financial report for the nine-month period ended December 31, 2009,references to “the Company”, “the Group” and “the SOFTBANK Group” are to SOFTBANK CORP. and its consolidated
subsidiaries except as the context otherwise requires or indicates.
2. This target (1) was previously stated as “generating a total of around ¥1 trillion in free cash flow over the next three years(through the fiscal year ending March 2012).” The forecasted consolidated free cash flow for the fiscal year ending inMarch 2010 was raised from the original ¥250,000 million to ¥300,000 million at the time of the earnings results
announcement for the six-month period ended September 30, 2009. In accordance with this change, this target (1) has
been restated as “generating a total of at least ¥1 trillion in free cash flow over the next three years (through the fiscal
year ending March 2012).”
3. Cash flows from operating activities + cash flows from investing activities.
4. Interest-bearing debt - cash position.
Interest-bearing debt = short-term borrowings + commercial paper + current portion of corporate bonds + corporate bonds+ long-term borrowings. Lease obligations are excluded.
Cash position = cash and cash deposits + marketable securities recorded as current assets.

3

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the nine-month period ended December 31, 2009

The main factors affecting earnings for the period were as follows:(a) Net Sales
Net sales totaled ¥2,045,304 million, for a ¥63,041 million (3.2%) year-on-year increase. An increase in thenumber of mobile phone subscribers and increased handset shipments5 boosted net sales at the Mobile
Communications segment by ¥113,432 million, while net sales declined by ¥23,086 million year-on-year at theBroadband Infrastructure segment and by ¥18,137 million year-on-year at the e-Commerce segment.
Note:
5.

Handsets shipped: the number of handsets shipped (sold) to agents.

(b) Cost of Sales
Cost of sales declined ¥38,765 million (3.8%) year-on-year to ¥980,954 million, mainly from a decrease in the costof sales associated with lower sales at the e-Commerce segment, and a decrease in telecommunications equipment
usage fees etc. paid by the Fixed-line Telecommunications and the Mobile Communications segment. In addition,
the cost of sales for mobile handsets increased year-on-year as a result of an increase in shipped handsets.

(c) Selling, General and Administrative Expenses
Selling, general and administrative expenses increased ¥10,177 million (1.5%) year-on-year to ¥698,030 million.
This was because of an increase in sales commissions along with growth in the number of handsets sold6.
However the Group was able to lower its expenses related to doubtful accounts (bad debt loss on doubtful accounts+ provision for allowance for doubtful accounts) as its Mobile Communications segment benefited from theimplementation of stricter credit screening.
Note:
6.

Handsets sold: the number of handsets sold to customers (new and upgrade purchases combined).

(d) Operating Income
Operating income totaled ¥366,319 million, marking a ¥91,628 million (33.4%) year-on-year increase.

(e) Non-operating Income / Expenses, net
Non-operating loss came to ¥85,131 million, an improvement of ¥15,064 million year-on-year (compared with a¥100,195 million loss in the same period of the previous fiscal year). The main factors were a decline in interest
payments by ¥1,410 million to ¥83,810 million due to a decrease in interest-bearing debt. At the same time,¥3,763 million from equity in earnings under the equity method, an improvement of ¥12,234 million year-on-year,
was recorded due to favorable operating results recorded at equity method applied investment funds.

(f) Ordinary Income
Ordinary income totaled ¥281,187 million, representing a ¥106,693 million (61.1%) year-on-year increase.

4

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the nine-month period ended December 31, 2009(g) Special Income
Special income totaled ¥6,004 million, consisting primarily of a ¥4,149 million gain from the sale of investment
securities.

(h) Special Loss
Special loss was ¥52,637 million. The main component was a loss on retirement of non current assets of ¥47,630
million.
SOFTBANK MOBILE Corp. (hereafter “SOFTBANK MOBILE”) recorded a loss on retirement of non current
assets amounting to ¥46,894 million. Out of this loss, ¥24,338 million relates to the termination of 2G mobile
phone services and ¥22,555 million is the result of a review and optimization of its existing 3G wirelesstelecommunication network equipment.
For further details, refer to page 32 “6. Consolidated Financial Statements - (6) Notes Consolidated Statements ofIncome - 3. Loss on retirement of non current assets”.

(i) Income Taxes and Minority Interest in Net Income
Provisions for income taxes, current and deferred, were ¥89,548 million and ¥15,671 million, respectively, and¥34,473 million was recorded as minority interests in net income.

(j) Net Income
Net income totaled ¥94,861 million, for a ¥36,679 million (63.0%) year-on-year increase.

5

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the nine-month period ended December 31, 2009

(2) Results by Business Segment* Principal operational data is shown on pages 11-12 under “(Reference 1: Principal Operational Data)”(a) Mobile Communications(Millions of yen)

Net sales
Operating income

Nine-month period ended
Dec. 31, 2008
1,150,822
134,911Nine-month period ended
Dec. 31, 2009
1,264,254
215,112

YoY
113,432
80,200

YoY
(%)
9.9
59.4

・ 1,034,300 net subscriber additions in the period
・ ARPU7

for third quarter (October to December 2009) was ¥4,200, marking a turnaround to year-on-year

growth・ Data ARPU for third quarter was ¥2,060, surpassing ¥2,000 for the first time

<Analysis of Results>
Primary factors affecting segment earnings were as follows:(Net sales)・ Telecom service revenue grew on a steady increase in the number of mobile subscribers at the core company

SOFTBANK MOBILE.

The increase in the number of 3G subscribers and use of data telecommunications

services led to higher data ARPU, which also contributed to the growth in telecom service revenue.
・ An increase in the number of new subscribers and handset upgrades (model changes) boosted the number ofhandsets shipped, resulting in an increase in sales of mobile handsets.
(Operating expenses)
・ Sales commissions grew on the increase in handsets sold, combined with a higher sales commission per user for

new and upgrade handset purchases resulting from changes in the model mix of handsets sold.
・ The cost of sales for mobile handsets grew on an increase in handsets shipped.
・ Expenses related to doubtful accounts (bad debt loss on doubtful accounts + provision for allowance for

doubtful accounts) declined significantly, as collection efforts benefited from the implementation of stricter
customer credit screening for new subscribers in July 2008.
Note:
7. Average Revenue Per User.
Includes prepaid mobile phones and communication module service subscribers.

6

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the nine-month period ended December 31, 2009

<Number of Mobile Phone Subscribers>
Net subscriber additions (new subscribers minus cancellations) at SOFTBANK MOBILE for the period totaled
1,034,3008. The iPhoneTM 9 recorded strong sales as a result of the iPhone for everybody promotional campaign,
which ran from February 2009 through January 2010 and reduced both the customer’s actual outlay purchase andthe maximum monthly charge for the packet flat-rate data service. Sales of the PhotoVision SoftBank HW001, a
digital picture frame with telecommunications functionality released in June 2009, have also been solid. As aresult, the cumulative subscribers as of the end of the period stood at 21,667,2008, of which 20,885,400 were 3G
subscribers.

SOFTBANK MOBILE’s cumulative subscriber share at the end of the period rose 0.7 of apercentage point year-on-year, to 19.6%10. SOFTBANK MOBILE continues to promote migration to 3G aheadof the scheduled termination of its 2G service on March 31, 2010.
Notes:
8. The number of net subscriber additions and the number of cumulative subscribers for SOFTBANK MOBILE include
communication module service subscribers.
Net subscriber additions for communication modules for the nine-month period ended December 31, 2009 totaled
263,100, and the total number of communication module service subscribers as of December 31, 2009 was 319,300.
9. iPhone is a trademark of Apple Inc.
The “iPhone” trademark is used under license from Aiphone K.K.
10. Calculated by the Company based on Telecommunications Carriers Association statistical data.

<ARPU>
ARPU for the third quarter (October to December 2009) was ¥4,200, an increase of ¥110 year-on-year, marking aturnaround to year-on-year growth.
Data ARPU rose ¥270 to ¥2,060, exceeding ¥2,000 for the first time, due to an increase in 3G subscribers,
especially in data-intensive iPhoneTM subscribers, while the basic monthly charge plus voice ARPU declined ¥150
year-on-year to ¥2,150. The decline in basic monthly charge plus voice ARPU was due to the negative impact ofthe decrease in voice communication, which exceeded the positive impact of the decrease in average discountamount on the Monthly Discounts11.
Note:
11. A special discount for New Super Bonus subscribers.

<Churn Rate and Upgrade Rate>
The churn rate12 for the third quarter (October to December 2009) was 1.16%, which was 0.25 of a percentage
point higher year-on-year. With an increase in the number of customers completing their installment handset
payments, some of these customers churned.

At the same time, the rate fell 0.08 of a percentage point from theprevious quarter.
The upgrade rate12 for the third quarter was 1.53%, which was 0.14 of a percentage point lower year-on-year and0.28 of a percentage point lower than in the previous quarter. This was primarily a reflection of a decline in the
migration from the 2G to the 3G service.
Note:
12. Includes prepaid mobile phones and communication module service subscribers.

7

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the nine-month period ended December 31, 2009(b) Broadband Infrastructure(Millions of yen)

Net sales
Operating income

Nine-month period ended
Dec. 31, 2008
178,415
36,606Nine-month period ended
Dec. 31, 2009
155,328
39,409YoY(23,086)
2,802

YoY
(%)
(12.9)
7.7<Overview of Operations>Operating income grew while net sales decreased year-on-year.

The trend of lower sales continued because of adecline in the number of lines installed at the ADSL business of the core company SOFTBANK BB Corp.
(hereafter “SOFTBANK BB”).

The increase in operating income was a result of reductions in sales-related

expenses including acquisition incentives at the ADSL business and other cost reduction initiatives.
SOFTBANK BB began offering Yahoo! BB Hikari with FLET'S13 nationwide from July 2009 and, as of the end of
the period, the number of contracts for Yahoo! BB Hikari with FLET'S reached a total of 114,000.
Note:
13. A broadband connection service that combines the Internet connection service Yahoo! BB and the FLET’S HIKARI
fiber-optic connection provided by NIPPON TELEGRAPH AND TELEPHONE EAST CORPORATION (“NTT East”)
and NIPPON TELEGRAPH AND TELEPHONE WEST CORPORATION (“NTT West”). FLET’S and FLET’S
HIKARI are registered trademarks of NTT East and NTT West.

(c) Fixed-line Telecommunications(Millions of yen)

Net sales
Operating income

Nine-month period ended
Dec. 31, 2008
268,655
11,335Nine-month period ended
Dec. 31, 2009
258,687
14,344

YoY(9,967)
3,009

YoY
(%)
(3.7)
26.5

<Overview of Operations>
Net sales for the segment declined year-on-year.

This was mainly the result of SOFTBANK IDC Solutions

Corp.’s14 sales previously reflected in this segment being included in the Internet Culture segment from thecurrent fiscal year.

Although steady revenue growth was maintained in businesses, including the core company

SOFTBANK TELECOM Corp’s. (hereafter “SOFTBANK TELECOM”) OTOKU Line direct connection
fixed-line voice service, the decline in revenue on relay connection voice services such as MYLINE andinternational telephone service continued.
Operating income remained solid with a year-on-year increase, from an increase in the number of lines forhigh-margin services like OTOKU Line.
SOFTBANK TELECOM began accepting applications in November 2009 for its first round of cloud computing15
services that leverage Group synergies – White Cloud HaaS16 Shared type and White Cloud HaaS Private type.
Notes:
14. SOFTBANK IDC Solutions Corp. was included in the Fixed-line Telecommunications segment until the previous fiscal
year. As a result of its merger with Yahoo Japan Corporation on March 30, 2009 its operating results have been
included in the Internet Culture segment from the current fiscal year.
15. The concept of using necessary information and communications services via the Internet.
16. Hardware as a Service: hardware functionality provided via the Internet (as a service).

8

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the nine-month period ended December 31, 2009(d) Internet Culture(Millions of yen)

Net sales
Operating income

Nine-month period ended
Dec. 31, 2008
189,833
92,060Nine-month period ended
Dec. 31, 2009
199,862
98,526

YoY
(%)

YoY
10,028
6,466

5.3
7.0

<Overview of Operations>
Both net sales and operating income rose year-on-year.

The sales growth at core company Yahoo Japan

Corporation (hereafter “Yahoo Japan”) was the result of the merger with SOFTBANK IDC Solutions Corp., sales
growth in Yahoo Japan’s business services from increased transaction value at Yahoo! Shopping and continued
growth in the number of Yahoo! Premium ID members in its personal service business.

The placements ofadvertisements showed signs of recovery limiting the year-on-year decline in sales of the advertising business to aminimum.
Operating income at Yahoo Japan rose year-on-year on reductions in expenses for items including outsourcing
and rent, as a result of stepped-up efforts to increase operational efficiency and reduce unnecessary costs.

(e)e-Commerce(Millions of yen)

Net sales
Operating income

Nine-month period ended
Dec. 31, 2008
192,687
3,802

Nine-month period ended
Dec. 31, 2009
174,550
3,790

YoY(18,137)
(12)

YoY
(%)
(9.4)
(0.3)

<Overview of Operations>
The segment recorded year-on-year declines in both net sales and operating income, primarily from decreases inrevenue and profit at the Commerce & Service Division of core company SOFTBANK BB, due to lower
corporate sales as a result of the sluggish economy.
Pursuing further synergies with the Group’s telecommunications-related businesses (the Mobile Communications,
Broadband Infrastructure, and Fixed-line Telecommunications business), SOFTBANK BB’s Commerce &Service Division will continue to enhance its product lineup, leveraging the SoftBank brand including SoftBank
SELECTION17, and develop more advanced corporate services that are packaged with the Group’s
telecommunications infrastructure, including e-learning for PCs and iPhoneTM and virtual solutions18.
Notes:
17. A brand of mobile phone accessories and PC software.
18. Services that perform the functions of multiple independent servers on one server.

9

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the nine-month period ended December 31, 2009(f) Others(Millions of yen)

Net sales
Operating loss

Nine-month period ended
Dec. 31, 2008
66,564(230)

Nine-month period ended
Dec. 31, 2009
61,426(1,341)

YoY(5,137)(1,111)

YoY
(%)
(7.7)
-

“The Others segment” comprises businesses including Technology Services (SOFTBANK TECHNOLOGY
CORP.), Media & Marketing (mainly SOFTBANK Creative Corp. and ITmedia Inc.), Overseas Funds, and Others(Fukuoka SOFTBANK HAWKS related operations, etc.).

(3) Analysis by Geographical Segment
(a)

Japan

Net sales rose ¥67,936 million (3.4%) year-on-year to ¥2,039,580 million, and operating income grew ¥94,674
million (34.1%) to ¥371,928 million.

(b)

North America

Net sales were ¥48 million (6.0%) lower year-on-year at ¥762 million, with an operating loss of ¥749 million(compared with ¥2,459 million in operating income in the same period of the previous fiscal year).

(c)

Others

Net sales at other regions declined ¥4,299 million (42.5%) year-on-year to ¥5,816 million, while the operating loss
came to ¥407 million (compared with a ¥390 million operating loss in the same period of the previous fiscal year).

10

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the nine-month period ended December 31, 2009

(Reference 1: Principal Operational Data）(a)

Mobile Communications
SoftBank mobile phones
Fiscal Year ended March 2009
Q1

Q2

Fiscal Year ending March 2010

Q3

Q4

Q1

Q2

Q3

Q4
(Thousands)Net
additions1

525.5

521.4

366.6

633.1

323.3

360.7

350.3

-

(Postpaid)

590

571

398

670

359

395

383.3

-

(Prepaid)

(64)

(49)

(31)

(37)

(36)

(34)

(33.0)-

Market share2

56.9

44.0

37.0

38.1

32.3

31.5

35.6

-

Cumulative
subscribers1

19,111.7

19,633.2

19,999.8

20,632.9

20,956.2

21,316.9

21,667.2-(3G)

15,113

16,321

17,24918,654

19,455

20,23820,885.4

-

(2G)

3,999

3,313

2,751

1,979

1,501

1,079

781.8

-

Market share2

18.4

18.7

18.9

19.2

19.3

19.4

19.6

-

(Yen per month)
ARPU3(Monthly
basic charge+ voice)

4,180

4,170

4,090

3,830

4,030

4,150

4,200

-

2,530

2,460

2,300

2,020

2,150

2,160

2,150

-

(Data)

1,650

1,710

1,790

1,820

1,880

1,990

2,060

(Yen)

Averageacquisition
cost persubscriber4

35,60035,50038,30045,30050,10035,90037,400(% per month)

Churn rate5

0.98

0.98

0.91

1.13

1.05

1.24

1.16

-

(3G only6)

0.72

0.76

0.69

0.90

0.87

1.07

0.99

-

Upgrade rate5

1.27

1.91

1.67

1.98

1.73

1.81

1.53

-

Notes:
1. Includes the number of communication module service subscribers.
2. Calculated by the Company based on Telecommunications Carriers Association statistical data.
3. Average Revenue Per User.
Includes prepaid mobile phones and communication module service subscribers.
4. Incentives paid to sales agents per new contract.
The number of new contracts includes prepaid mobile phones and communication modules.
5. Includes prepaid mobile phones and communication module service subscribers.
6. Excludes prepaid mobile phones.

11

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the nine-month period ended December 31, 2009(b)

Broadband Infrastructure
Yahoo! BB ADSL

(Thousands)
Fiscal Year ending March 2010

Fiscal Year ended March 2009
Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Installed lines7

4,653

4,551

4,427

4,299

4,158

4,040

3,908

Charged lines8

4,127

4,057

4,022

3,907

3,769

3,657

3,533
(Yen per month)

ARPU9

4,283

4,279

4,278

4,262

4,259

4,255

4,245

-

(% per month)

Churn rate10
2.25
1.92
1.92
2.23
2.12
1.80
1.96
Notes:
7. Number of lines for which connection construction for ADSL line at central office of NTT East or NTT West is complete.
8. Number of installed lines excluding customers whose basic monthly charge is free under campaigns or other promotional
initiatives.
9. Average Revenue Per User: Monthly average payment by charged line.
10. Average ratio of customer lines with a history of payment for which a cancellation application has been filed during therelevant period.

(c)Fixed-line TelecommunicationsOTOKU Line

(Thousands)
Fiscal Year ending March 2010

Fiscal Year ended March 2009
Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Lines

1,443

1,498

1,544

1,608

1,631

1,652

1,657
(Yen per month)

ARPU11

6,149

6,247

6,246

6,504

6,388

6,284

6,445

-

Note:
11. Average Revenue Per User: average payment by line.

(d)Internet Culture(Millions)Fiscal Year ended March 2009

Fiscal Year ending March 2010

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

43,98843,433

41,111

46,18746,44546,37842,779

-

176

173

190

205

229

189

197

-

23

-

Yahoo! JAPAN
Total monthly
page views12
Uniquebrowsers13
Yahoo! Auctions
Averagenumber of total
listed items14
15
16
18
19
20
20
Notes:
12. Number of accesses to Yahoo! JAPAN Group websites during the last month of each quarter.
13. Number of browsers accessing a Yahoo! JAPAN service during the last month of each quarter.
14. Daily average number of items posted during the last month of each quarter.

12

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the nine-month period ended December 31, 2009

(Reference 2: Capital Expenditure and Depreciation)(a)Capital Expenditure (acceptance basis)(Millions of yen)
Fiscal Year ending March 2010

Fiscal Year ended March 2009
Q1

Q2

Q3

Q4

Q1

Q2

Q3

37,49338,75652,90970,01832,40839,14847,921

-

4,761

3,010

3,112

3,705

1,608

1,597

2,058

-

5,100

8,196

9,598

6,694

3,710

3,939

3,436

-

Internet Culture

2,740

3,097

2,196

1,853

1,101

1,271

1,457

-

e-Commerce

152

324

303

508

187

226

243

-

Others

1,333

637

1,017

1,574

1,348

675

464

-

Consolidated total

51,57854,022

69,13784,35540,36446,85855,582-

Segment
MobileCommunications
Broadband
Infrastructure
Fixed-line
Telecommunications

(b)

Q4

Depreciation (excluding amortization of goodwill)(Millions of yen)
Fiscal Year ending March 2010

Fiscal Year ended March 2009
Q1

Q2

Q3

Q4

Q1

Q2

Q3

38,67939,60240,91842,31642,77343,41844,696

-

5,655

5,380

5,386

5,552

4,440

4,347

4,121

-

9,215

9,205

9,167

9,178

8,982

8,837

8,669

-

Internet Culture

2,355

2,593

2,888

3,005

2,385

2,459

2,511

-

e-Commerce

276

265

283

296

284

299

312

-

Others

816

1,021

1,023

927

943

905

1,002

-

Consolidated total

56,99958,06859,66861,27759,80960,26661,314-

Segment
MobileCommunications
Broadband
Infrastructure
Fixed-line
Telecommunications

13

Q4

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the nine-month period ended December 31, 2009

2. Analysis of Financial Position(1) Assets, Liabilities and Equity
Assets, liabilities, and equity at the end of the third quarter period were as follows:(Millions of yen)
As of Dec. 31, 2008

As of Dec. 31, 2009

YoY

YoY (%)

Total assets

4,359,176

4,386,672(27,495)(0.6％)

Total liabilities

3,415,484

3,561,873(146,389)(4.1％)

Total equity

943,692

824,798

118,893

14.4％(a) Current Assets
Current assets at the end of the period totaled ¥1,608,441 million, for a ¥88,127 million (5.8%) increase from theprevious fiscal year end. The primary components of the change were as follows:
・ Cash and deposits increased by ¥147,795 million from the previous fiscal year end.

Mainly as the result of

operating activities, there was an increase at Yahoo Japan of ¥72,051 million and an increase at SOFTBANKMOBILE of ¥48,127 million while it repaid ¥95,864 million of its SBM loan1.
thth

The other main reasons for thethmovement in cash and deposits were the issuance of the 27 , 28 and 29 Unsecured Straight Corporate Bonds,
totaling ¥155,000 million from June through September, partially offset by a decrease in outstanding borrowingsby ¥65,900 million at the Company.

There was also a decrease of ¥45,000 million after a redemption onst

SOFTBANK TELECOM’s 1 series of Unsecured Straight Corporate Bonds.
・ Notes and accounts receivable-trade decreased ¥65,742 million.

This was the result of the securitization of¥20,694 million in sales of installment sales receivables and collections of accounts receivable for installment
sales of mobile handsets at the Mobile Communications segment.
・ Deferred tax assets decreased ¥20,005 million from the previous fiscal year end mainly because of the utilizationof loss carryforwards at BB MOBILE Corp. and SOFTBANK BB.
Note:
1. The acquisition funds for the acquisition of Vodafone K.K. were refinanced in November 2006 via a whole businesssecuritization program.

(b) Fixed Assets
Fixed assets totaled ¥2,748,672 million at the end of the period, for a ¥116,364 million (4.1%) decrease from theprevious fiscal year end. The primary components of the change were as follows:
・ Property and equipment, net decreased ¥59,417 million from the previous fiscal year end.

This was mainly

because of the depreciation of telecommunications equipment and telecommunication service lines at the
telecommunications-related businesses and the retirement of certain pieces of the telecommunications equipment
at the Mobile Communications segment.
・ Intangible assets decreased ¥59,983 million from the previous fiscal year end.

This was mainly due to adecrease in goodwill of ¥45,651 million caused mainly by the regular amortization at SOFTBANK MOBILE andSOFTBANK TELECOM, and from amortization of software.

14

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the nine-month period ended December 31, 2009(c) Current Liabilities
Current liabilities at the end of the period totaled ¥1,254,622 million, for a ¥94,960 million (7.0%) decrease fromthe previous fiscal year end. The primary components of the change were as follows:
・ Short-term liabilities decreased by ¥172,101 million from the previous fiscal year end.

This was mainly

because of a ¥133,500 million decrease in the Company’s outstanding short-term borrowings after part of theshort-term borrowings were refinanced as long-term borrowings or procurement through corporate bonds.
・ Income taxes payable increased ¥50,167 million, mainly because of the small amount of taxes payable at the endof the previous fiscal year at Yahoo Japan from the utilization of loss carryforwards, and the occurrence ofincome taxes under consolidated tax return at BB Mobile Corp.2 due to the full utilization of loss carryforwards.
・ Accounts

payable-other and accrued expenses increased by ¥39,878 million.

The main reasons were along-term accounts payable of ¥75,000 million, relating to the additional entrustment for debt assumption ofbonds3 recorded at the end of the previous fiscal year, which was transferred from long-term liabilities due to thematurity within one year. However, SOFTBANK MOBILE’s commissions payable to agents from the previous
fiscal year’s year-end sales season and equipment-related payables decreased along with payments made.
・ The current portion of corporate bonds increased by ¥9,400 million.

The 22nd and 24th Unsecured Straight

Corporate Bonds of ¥54,400 million were transferred from long-term liabilities as a result of their remaining
tenor becoming less than one year.

On the other hand, redemption of SOFTBANK TELECOM’s 1st series

Unsecured Straight Bond decreased the outstanding amount by ¥45,000 million.
Notes:
2. BB Mobile Corp., SOFTBANK MOBILE and its subsidiaries, all of which are subsidiaries of the Company, adopt theconsolidation taxation system.
3. Refer to page 31.

15

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the nine-month period ended December 31, 2009(d) Long-term Liabilities
Long-term liabilities totaled ¥2,160,862 million at the end of the period, for a ¥51,428 million (2.3%) decrease
from the previous fiscal year end.

The primary components of the change were as follows:・ Corporate bonds outstanding increased by ¥93,948 million from the end of the previous fiscal year.
nd

Althoughththe transfer of the 22 and 24 Unsecured Straight Corporate Bonds to current liabilities reduced this amount by¥54,400 million, the issuance of the 27th, 28th, and 29th Unsecured Straight Corporate Bonds added ¥155,000
million.
・ Long-term debt decreased by ¥43,461 million.

The main reason was that SOFTBANK MOBILE repaid¥95,864 million of its SBM loan, and ¥10,000 million was transferred to current liabilities at Yahoo Japan. On
the other hand, part of the borrowings under the Company’s credit line facility of September 2009 was refinanced
as long-term liabilities at the time of contract renewal, resulting in an increase of ¥67,600 million.
・ Lease obligations decreased by ¥29,005 million, mostly from the transfer to current liabilities of lease obligations

related to capital expenditure at SOFTBANK MOBILE becoming payable within one year.
・ Other liabilities decreased by ¥70,754 million, as ¥75,000 million in long-term accounts payable recorded by

SOFTBANK MOBILE at the end of the previous fiscal year became payable within one year and were therefore
transferred to current liabilities.

(e) Equity
Equity totaled ¥943,692 million at the end of the period, for a ¥118,893 million (14.4%) increase from the previous
fiscal year end.

Retained earnings increased ¥92,486 million, totaling ¥41,216 million as of the end of the period.

As a result of profit recorded at Yahoo Japan etc. minority interests came to ¥479,127 million, an increase of¥28,712 million.

16

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the nine-month period ended December 31, 2009

(2) Cash Flows
Cash flow activities during the nine -month period were as follows.
Cash and cash equivalents at the end of the nine-month period totaled ¥603,279 million, for a ¥145,635 million
increase from the previous fiscal year end.
(Millions of yen)
Nine-month period ended

Nine-month period ended

Dec. 31, 2008

Dec. 31, 2009

Difference
Cash flows from operating activities

270,768

469,178

198,409

Cash flows from investing activities(223,120)(185,596)

37,524(Reference) Free cash flow

47,647

283,581

235,933

Cash flows from financing activities(149,508)(136,457)

13,050(a) Cash Flows from Operating Activities:
Net cash provided by operating activities totaled ¥469,178 million (compared with ¥270,768 million provided in
the same period of the previous fiscal year).
Income before income taxes and minority interests totaled ¥234,554 million, while non-cash items included¥181,390 million in depreciation and amortization, loss on retirement of non current assets of ¥47,630 million and¥45,804 million in amortization of goodwill.

In terms of working capital, a decline in receivables-trade had apositive impact of ¥79,942 million, which includes the impact of securitizing ¥20,694 million in sales of
installment sales receivables, while a decrease in accounts payables–trade had a negative impact of ¥18,353 million.
In addition, there was a negative impact on other, net of ¥65,083 million mainly due to the payments of accounts
payable to sales agents and a decrease in allowance for doubtful accounts at the Mobile Communications business.
Income taxes paid for the period totaled ¥38,883 million, a ¥21,692 million decrease year-on-year. The decline
was due to the fact that Yahoo Japan utilized loss carryforwards assumed from SOFTBANK IDC Solutions Corp.
when they merged on March 30, 2009.

(b) Cash Flows from Investing Activities:
Net cash used in investing activities was ¥185,596 million (compared with ¥223,120 million used in the same
period of the previous fiscal year).
Capital expenditures, mainly at telecommunications-related businesses, resulted in ¥183,048 million in outlays forproperty and equipment and intangibles. Purchases of marketable and investment securities resulted in ¥24,827
million in cash outlays, while proceeds from sales of marketable and investment securities came to ¥17,380
million.

As a result, free cash flow (the combined net cash flows from operating activities and investing activities) for theperiod was a positive ¥283,581 million (compared with a positive ¥47,647 million in the same period of theprevious fiscal year), a significant increase of ¥235,933 million year-on-year.

17

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the nine-month period ended December 31, 2009(c) Cash Flows from Financing Activities:
Net cash used in financing activities was ¥136,457 million (compared with ¥149,508 million used in the same
period of the previous fiscal year).
Repayments of long-term borrowings totaled ¥352,398 million, the change in short-term borrowings, net was adecrease of ¥121,645 million, an outlay for the repayment of lease obligations was ¥69,589 million and ¥51,673
million was used for the redemption of corporate bonds. At the same time, long-term borrowings raised ¥261,808
million, corporate bond issues generated ¥153,603 million, and ¥55,441 million was recorded as proceeds from thesale and lease back of equipment newly acquired.

18

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the nine-month period ended December 31, 2009

[Reference]
Major Financing Activities
The major financing activities in the nine-month period were as follows:
Item
Issue bonds

Company NameSOFTBANK CORP.

Details

Summary

Issue of the 27th Unsecured
Straight Corporate Bond
(Fukuoka SoftBank
HAWKS Bond)

Issue date: June 11, 2009
Redemption date: June 10, 2011
Procured amount: ¥60,000 million
Interest rate: 5.10%/year
Use: Redemption of bonds and repaymentof borrowings
Issue date: July 24, 2009
Redemption date: July 24, 2012
Procured amount: ¥30,000 million
Interest rate: 4.72%/year
Use: Redemption of bonds and repaymentof borrowings
Issue date: Sept. 18, 2009
Redemption date: Sept. 18, 2012
Procured amount: ¥65,000 million
Interest rate: 4.52%/year
Use: Redemption of bonds and repaymentof borrowings
Redemption date: Dec. 7, 2009
Redeemed amount: ¥45,000 million
Procurement date: June 30, 2009
Redemption method:monthly pass-through repayment
Use: capital expenditure and repaymentof funds raised via the whole businesssecuritization financing scheme
Procurement date: Sept. 30, 2009
Redemption method:monthly pass-through repayment
Use: capital expenditure and repaymentof funds raised via the whole businesssecuritization financing scheme
Procurement date: Dec. 29, 2009
Redemption method:monthly pass-through repayment
Use: capital expenditure and repaymentof funds raised via the whole businesssecuritization financing scheme

Issue of the 28th Unsecured
Straight Corporate Bond

Issue of the 29th Unsecured
Straight Corporate Bond
(Fukuoka SoftBank
HAWKS Bond)

Bond
redemption
Securitizationof receivables

SOFTBANK TELECOM Corp.
SOFTBANK MOBILE Corp.

1st Series of Unsecured Straight
Bond
Procurement of funds totaling¥70,247 million accompanying
securitization of mobile phone
installment sales receivables(recorded as borrowings)
Procurement of funds totaling¥49,956 million accompanying
securitization of mobile phone
installment sales receivables(recorded as borrowings)
Procurement of funds totaling¥60,081 million accompanying
securitization of mobile phone
installment sales receivables(recorded as borrowings)

Increaseordecrease in debt
(excluding
securitization ofreceivables)

Capitalexpenditure byfinancial lease

SOFTBANK CORP.

Decrease ¥65,900million

SOFTBANK MOBILE Corp.

Decrease ¥95,864 million

SOFTBANK TELECOM Corp.

Decrease ¥19,969 million

Yahoo Japan Corporation

Decrease ¥20,000 million

SOFTBANK MOBILE Corp. etc.

Capital expenditure mainly at
the Mobile Communications
business by utilizing lease.

19

Repayment of funds raised via the wholebusiness securitization financing scheme

Funds procured during the nine-month
period ended Dec. 31, 2009: ¥55,441
million.

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the nine-month period ended December 31, 20093.

Earnings Forecasts

The Group is forecasting consolidated operating income of ¥420,000 million for the fiscal year ending March 2010, and¥500,000 million for the fiscal year ending March 2011.

<Earnings Forecasts>

Consolidated operating income

Fiscal year ending March 31, 2010
forecast
420,000(Millions of yen)
Fiscal year ending March 31, 2011
forecast
500,000

Consolidated net sales are greatly influenced by the sales method used by the Group for mobile handsets, which makes
it difficult to forecast business results. In addition, the Company holds a variety of investment securities and invests infunds that are vulnerable to the market environment, making it difficult to estimate earnings under the equity method
and the special income/loss.

For this reason, meaningful earnings forecasts for equity in earnings under the equity

method, special income and loss cannot be provided at this time.

20

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the nine-month period ended December 31, 2009

4.

The SOFTBANK GroupAs of December 31, 2009 the Group was 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

were as follows.

Consolidated
subsidiaries

Equity method
non-consolidated
subsidiaries andaffiliates

Mobile Communications

6

2

Broadband Infrastructure

6

1

Fixed-line Telecommunications

3-

Internet Culture

18

11

e-Commerce

7

4

Others

69

45

109

63

Business segments

Total

Main business of segment and name of business
Provision of mobile communication services and sale ofmobile 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. (Note) )Provision of fixed-line telecommunications etc.
(Core companies: SOFTBANK TELECOM Corp. (Note))
Internet-based advertising operations, portal business andauction business etc.
(Core company: Yahoo Japan Corporation (Note))
Distribution of PC software and hardware including PCs
and peripherals, enterprise solutions, and diversified
e-commerce businesses, including business transaction
platforms (B2B) and consumer-related e-commerce (B2C)
etc.
(Core companies: SOFTBANK BB Corp. (Note) 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.)

Note:
SOFTBANK BB Corp., SOFTBANK TELECOM Corp. and Yahoo Japan Corporation are included in as consolidated
subsidiaries in 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 andtheir operating results are allocated to multiple business segments.

［Listed Companies］
The following of the Company’s 5 subsidiaries were listed on domestic stock exchanges as of December 31,
2009:
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 nine-month period ended December 31, 2009

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.
(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
There are no applicable items.

22

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the nine-month period ended December 31, 2009

6. Consolidated Financial Statements(1) Consolidated Balance Sheets(Millions of yen)
As ofDecember 31, 2009

As ofMarch 31, 2009

AmountAmountASSETS
Current assets:
Cash and deposits
Notes and accounts receivable - tradeMarketable securities¥605,749¥457,953

792,342858,084

4,149

2,917

Merchandise and finished products

43,77342,320

Deferred tax assets

73,01593,021Other current assets
Less:
Allowance for doubtful accounts
Total current assets

132,752

114,874(43,341)(48,858)

1,608,441

1,520,313

Buildings and structures

68,781

71,577

Telecommunications equipment

697,091

738,967

Telecommunications service lines

74,53079,637

Land

22,544

22,576

Construction in progress

31,74837,477

Other property and equipment

46,83250,710Total property and equipment

941,529

1,000,946

Goodwill

911,079

956,730

Software210,143

226,131

Other intangibles

40,90339,245

1,162,125

1,222,108

345,421

320,102160,826

158,228

161,289

200,749(22,520)
645,017
2,748,672(37,100)
641,980
2,865,036

2,063

1,322

¥4,359,176¥4,386,672

Fixed assets:
Property and equipment, net:

Intangible assets, net:

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

23

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the nine-month period ended December 31, 2009

Consolidated Balance Sheets(Millions of yen)
As ofDecember 31, 2009

As ofMarch 31, 2009

AmountAmountLIABILITIES AND EQUITYCurrent liabilities:
Accounts payable - trade
Short-term borrowings¥141,835¥160,339

403,431575,532

73,40064,000392,049

352,171

Income taxes payable

71,53021,363Current portion of lease obligations

104,564

88,241Other current liabilities

67,81087,935

Total current liabilities

1,254,622

1,349,583

Corporate bonds

418,514324,566

Long-term debt

1,392,831

1,436,292

Deferred tax liabilities

26,50928,795

Liability for retirement benefits

15,812

16,076

Allowance for point mileage

42,212

41,816

Lease obligations

204,308

233,314

Other liabilities

60,673

131,428

Total long-term liabilities

2,160,862

2,212,290

Total liabilities

3,415,484

3,561,873

Common stock

188,734

187,681

Additional paid-in capital

213,062

211,999

Retained earnings (accumulated deficit)

41,216(51,269)

Less: Treasury stock

(221)

(214)

Total shareholders’ equity

442,791

348,197

Unrealized gain on available-for-sale securities

42,58031,334

Deferred gain on derivatives under hedge accounting

13,217

25,117

Foreign currency translation adjustments(34,447)(30,554)

Total valuation and translation adjustments

21,35025,897422

289

479,127450,414

Current portion of corporate bonds
Accounts payable - otherand accrued expenses

Long-term liabilities:

Equity:Stock acquisition rights
Minority interests
Total equity
Total liabilities and equity

24

943,692

824,798¥4,359,176¥4,386,672

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the nine-month period ended December 31, 2009

(2) Consolidated Statements of Income
For the nine-month period ended December 31, 2009

(Millions of yen)

Nine-month period ended
December 31, 2008

Nine-month period ended
December 31, 2009

April 1, 2008 to
December 31, 2008

April 1, 2009 to
December 31, 2009

AmountAmountNet sales
Cost of sales
Gross Profit¥1,982,262

Selling, general and administrative expenses
Operating income
Interest income
Foreign exchange gain, net
Equity in earnings of affiliated companies¥2,045,304

1,019,719

980,954

962,543

1,064,349

687,852

698,030

274,690366,319

1,092

472

1,309

1,188

-

3,763

Other non-operating income
Non-operating income

5,325

4,560

7,727

9,985

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

85,22083,8108,471-

14,231

11,306

107,923

95,116

174,494

281,187

Gain on sale of investment securities

2,980

4,149

Dilution gain from changes in equity interest

2,407

1,403

Gain on liquidation of a subsidiary

2,972

-

Other special income

1,380

451

9,740

6,004

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

3,907

2,940

3,673

551

383

47,630

Other special losses

2,173

1,514

10,13752,637174,097234,554

Current

53,24789,548DeferredOrdinary income

Special income

Special loss
Income before income taxes and minority interests
Income taxes:

29,361

15,671

Total income taxes

82,609105,220

Minority interests in net income

33,30634,473¥58,182¥94,861

Net income25

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the nine-month period ended December 31, 2009

For the three-month period ended December 31, 2009

(Millions of yen)Three-month period ended
December 31, 2008

Three-month period ended
December 31, 2009

October 1, 2008 to
December 31, 2008

October 1, 2009 to
December 31, 2009

AmountAmountNet sales
Cost of sales
Gross Profit¥653,264¥696,028

329,582

331,603

323,682

364,425

Selling, general and administrative expenses

228,992

228,728

94,690135,697

226

165

691

422

-

1,479

Other non-operating income
Non-operating income

2,142

1,549

3,059

3,617

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

28,15928,464

6,050-

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

6,360

3,200

40,57031,66557,178

107,649

Gain on sale of investment securities

461

121

Dilution gain from changes in equity interest

53

242

2,972

-

37

3

Ordinary income

Gain on liquidation of a subsidiary
Other special income
Special income

3,525

367

Valuation loss on investment securities
Unrealized loss on valuation of investments and gain
(loss) on sale of investments at subsidiaries in the U.S.,
net
Loss on retirement of non current assets

784

1,652

497

896

121

47,192Other special losses

419

537

1,822

50,27858,881

57,739Current

18,81440,725

Deferred

11,959(19,064)

Total income taxes

30,774

21,661

Minority interests in net income

11,04011,967¥17,066¥24,110Special loss
Income before income taxes and minority interests
Income taxes:

Net income

26

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the nine-month period ended December 31, 2009

(3) Consolidated Statements of Cash Flows(Millions of yen)

Nine-month period ended
December 31, 2008

Nine-month period ended
December 31, 2009

April 1, 2008 to
December 31, 2008

April 1, 2009 to
December 31, 2009

Cash flows from operating activities:
Income before income taxes and minority interests¥174,097¥234,554

Depreciation and amortization

174,736

181,390

Amortization of goodwill

45,99245,804

Loss on retirement of non current assets

383

47,630Equity in losses (earnings) of affiliated companies

8,471(3,763)

Dilution gain from changes in equity interest, net(2,333)(1,334)

Valuation loss on investment securities

3,907

2,940

3,673

551

Foreign exchange gain , net(2,917)(714)(4,051)(1,293)

Interest and dividend income(1,875)(714)Interest expense

85,22083,810Adjustments for:

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

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

8,528

79,942

Decrease in payables - trade(63,991)(18,353)(25,950)(65,083)

407,226

582,029

1,930

710

Interest paid

(77,812)(74,677)

Income taxes paid

(60,576)(38,883)

270,768

469,178

Other, net
Sub-totalInterest and dividends received

Net cash provided by operating activities- Continued -27

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the nine-month period ended December 31, 2009

Consolidated Statements of Cash Flows (Continued)(Millions of yen)

Nine-month period ended
December 31, 2008

Nine-month period ended
December 31, 2009

April 1, 2008 to
December 31, 2008

April 1, 2009 to
December 31, 2009

Cash flows from investing activities:
Purchase of property and equipment, and intangibles¥ (196,347)¥ (183,048)(29,305)(24,827)

14,625

17,380(17,530)

(40)

5,437

4,939

(223,120)(185,596)

Increase (decrease) in short-term borrowings, net

83,312(121,645)

Proceeds from long-term debt

153,276

261,808

Repayment of long-term debt

(268,347)(352,398)-

153,603(57,703)(51,673)

Exercise of warrants

495

2,105

Proceeds from issuance of shares to minority shareholders

952

1,095

Cash dividends paid

(2,674)(2,673)

Cash dividends paid to minority shareholders(4,121)(4,615)Purchase of treasury stock of consolidated subsidiaries
Proceeds from sale and lease back of equipment newly acquired(53,579)(2,865)67,22555,441

Repayment of lease obligations(60,294)(69,589)

Other, net(8,048)(5,050)(149,508)(136,457)(3,062)(808)(104,922)

146,316169

126(1,810)(807)

490,266

457,644¥383,703¥603,279

Purchase of marketable and investment securities
Proceeds from sale of marketable and investment securities
Acquisition of interests in subsidiaries newly consolidated,
net of cash acquired
Other, net
Net cash used in investing activities
Cash flows from financing activities:

Proceeds from issuance of bonds
Redemption of bonds

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

28

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the nine-month period ended December 31, 2009(4) Significant Doubt about Going Concern Assumption
There are no applicable items for the nine-month period ended December 31, 2009.

(5) Basis of Presentation of Consolidated Financial Statements(Items described “Qualitative Information/Financial Statements 5. Others” on page 22 are excluded.)
1. Changes in scope of consolidation(1) Changes in scope of consolidation for the nine-month period ended December 31, 2009 are as follows:<Increase>
5 companies<Decrease>
4 companies
Significant changes:
Overture K.K.

Merged with Yahoo Japan Corporation(2) The number of consolidated subsidiaries after the changes:
109 companies
2. Changes in scope of equity method(1) Changes in scope of equity method are as follows:<Increase>
3 companies
Significant changes:
Oak Pacific Interactive
RockYou, Inc.
<Decrease>
14 companies

Additionally acquired
Additionally acquired(2) The number of non-consolidated subsidiaries and affiliated companies under the equity method after the changes:
Non-consolidated subsidiaries under the equity method: 5 companies
Affiliated companies under the equity method: 58 companies

29

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the nine-month period ended December 31, 2009(6) Notes(Consolidated Balance Sheets)
1. Accumulated depreciation of property and equipment
As of December 31, 2009
1,063,041

million yen

As of March 31, 2009
966,322

million yen

2. Secured loans(1) Assets pledged as collateral for secured liabilities
Assets pledged as collateral and secured liabilities by consolidated subsidiaries are as follows:
As of December 31, 2009

As of March 31, 2009

Assets pledged as collateral:
Cash and deposits

222,351

212,414

Notes and accounts receivable - trade

265,445

312,831

Buildings and structures

12,022

12,774

Telecommunications equipment

224,491

260,509

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

144

189

10,624

10,61782,09866,863

17,811

31,999834,989

million yen

As of December 31, 2009

908,201

million yen

As of March 31, 2009

Secured liabilities:
Accounts payable - trade

1,394

1,239

Short-term borrowings

2,414

2,903

Long - term debt

1,287,099

1,187,290

Total

1,191,098

million yen

1,291,242

million yen

Consolidated subsidiaries shares owned by SOFTBANK MOBILE, SOFTBANK MOBILE shares owned by BB Mobile
Corp. and BB Mobile Corp. shares owned by Mobiletech Corporation are pledged as collateral for long-term debt (totaled to¥1,184,853 million and ¥1,088,988 million, as of March 31, 2009 and December 31, 2009, respectively) resulting from theacquisition of SOFTBANK MOBILE, in addition to the assets pledged as collateral above.
(2) Borrowings by securitization of receivables[1] The securitization of installment sales receivable of SOFTBANK MOBILE
Cash proceeds through the securitization of installment sales receivables of SOFTBANK MOBILE, excluding that
qualify for derecognition criteria of a financial asset, were included in “Short-term borrowings” (¥185,669 million and¥180,523 million, as of March 31, 2009 and December 31, 2009, respectively) and “Long-term debt” (¥36,256 millionand ¥41,872 million, as of March 31, 2009 and December 31, 2009, respectively). The amounts of the senior portionof the securitized installment sales receivables (¥ 221,925 million and ¥222,396 million, as of March 31, 2009 and asof December 31, 2009, respectively) were included in “Notes and account receivable-trade”, along with thesubordinated portion held by the SOFTBANK MOBILE. The trustee raised the funds through asset backed loans
based on the receivables.

30

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the nine-month period ended December 31, 2009[2] The securitization of receivables for ADSL services of SOFTBANK BBSOFTBANK BB transferred its senior portion of the securitized present and future receivables for ADSL services* toa SPC (a consolidated subsidiary), and the SPC raised the funds through asset backed loans based on the receivables(¥20,000 million and ¥12,398 million, as of March 31, 2009 and December 31, 2009, respectively) from a financial
institution. Cash proceeds through the asset backed loans are included in the “Short-term borrowings” (¥6,660
million and ¥6,660 million, as of March 31, 2009 and December 31, 2009, respectively) and “Long-term debt”(¥13,340 million, and ¥5,738 million, as of March 31, 2009 and December 31, 2009, respectively).
* A certain portion of present and future (through March 2012) receivables realized through the ADSL services provided by
SOFTBANK BB.

(3) Borrowings by security lending agreements
Cash receipts as collateral from financial institutions, to whom the Company lent a portion of shares in its subsidiary under
security lending agreements are presented as follows:
As of December 31, 2009
Short-term borrowings

114,000 million yen

As of March 31, 2009
110,000 million yen

3. Additional entrustment for debt assumption of bonds (As of December 31, 2009)SOFTBANK MOBILE has entrusted cash for the repayment of the straight bonds listed in the following table based on debt
assumption agreements with a financial institution. The bonds are derecognized in the Company’s consolidated balance
sheets.
The trust had collateralized debt obligations (“CDO”) issued by a Cayman Islands based Special-Purpose Company (“SPC”).
The SPC contracted a credit default swap agreement secured by debt securities (corporate bonds), which referred to a certain
portion of the portfolio consisting of 160 referenced entities. Since defaults (credit events under the agreement) of more than acertain number of referenced entities occurred, ¥75,000 million in total was reduced from the redemption amount of the CDO
in April 2009 and an additional entrustment was required for the reduced amount.
As a result, for the amount required as the additional entrustment of ¥75,000 million, a long term accounts payable wasrecognized as a recognized subsequent event (Type I subsequent event) and included in “Other liabilities” of long-term
liabilities in the consolidated balance sheets, and it was recorded as special loss in the consolidated statement of income for theyear ended March 31, 2009.
As of December 31, 2009, since the maturity for the additional entrustment was within one year, the accounts payable wasincluded in “Accounts payable-other and accrued expenses” of current liabilities in the consolidated balance sheets.
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.

As of December 31, 2009
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

31

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the nine-month period ended December 31, 2009

(Consolidated Statements of Income)For the nine-month period ended December 31, 2008 and 2009 (From April 1 to December 31, 2008 and 2009)
1. Selling, general and administrative expenses
Nine-month period ended
December 31, 2008
292,357 million yen

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

30,181

Nine-month period ended
December 31, 2009
330,509 million yen
11,3902. Unrealized appreciation (loss) on valuation of investments and gain (loss) 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 set
forth in Financial Services – Investment Companies of the FASB Accounting Standards Codification Topic 946(ASC 946) andaccount for investment securities in accordance with ASC 946.
The net changes in the fair value of the investments are recorded as unrealized appreciation (loss) on valuation of investments
and gain (loss) on sale of investments at subsidiaries in the U.S., net and gain (loss) on sale of investments, computed based on
the acquisition cost, is also included in this account. The unrealized appreciation (loss) on valuation of investments and gain
(loss) on sale of investments included in unrealized appreciation (loss) on valuation of investments and gain (loss) on sale ofinvestments at subsidiaries in the U.S., net in the consolidated statements of income are as follows:
Nine-month period ended
December 31, 2008
Unrealized appreciation (loss) on valuation of investment
at subsidiaries in the U.S.,net
Gain (loss) on sale of investments
at subsidiaries in the U.S.,net
Total

Nine-month period ended
December 31, 2009

(3,725)

1,074

52(1,625)(3,673) million yen(551)

million yen

3. Loss on retirement of non current assets(1) Loss on retirement of non current assets related to the termination of second-generation mobile phone services
Certain pieces of telecommunications equipment being used exclusively for second-generation (2G) mobile phone services in
the Mobile communications business are scheduled to be removed upon termination of 2G mobile phone services in March,
2010. These pieces of telecommunications equipment are being depreciated under the straight-line method over the period
commencing from the acquisition of Vodafone K.K. (currently SOFTBANK MOBILE) in April 2006 to the scheduled
termination of 2G services in March, 2010.
In June 2009, a new frequency for the next generation mobile phone services was assigned to SOFTBANK MOBILE. The
telecommunications equipment being used for 2G mobile phone services except for the aforementioned equipment wasreviewed to determine which pieces would be used for the next generation mobile phone services and which pieces will be
removed. For the nine-month period ended December 31, 2009, loss on retirement of non current assets was recorded for theassets to be additionally removed. As the assets to be removed upon termination of 2G services were specified, it became
possible to reasonably estimate the removal costs. These removal costs were included in loss on retirement of non current
assets in the consolidated statements of income for the nine-month period ended December 31, 2009.
The loss on retirement of non current assts of ¥24,338 million consists of ¥17,884 million for equipment removal cost and¥6,453 million for loss on retirement of telecommunications equipment.
(2) Loss on retirement of non current assets related to the telecommunications equipment for third-generation mobile phone
SOFTBANK MOBILE replaced certain pieces of existing wireless network equipment in order to increase efficiency of the
future capital expenditures and reduce maintenance costs. As a result, the previously used wireless network equipment for
third-generation mobile phone services was retired, and the total carrying amounts of the retired assets and the related removal
costs were recorded as loss on retirement of non current assets in the consolidated statements of income for the nine-month
period ended December 31, 2009. The loss on retirement of non current assets of ¥22,555 million consists of ¥13,719 million
for telecommunications equipment, ¥8,726 million for software, and ¥110 million for removal costs.

32

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the nine-month period ended December 31, 2009

For the three-month period ended December 31, 2008 and 2009 (From October 1 to December 31, 2008 and 2009)1.

Selling, general and administrative expenses
Nine-month period ended
December 31, 2008
97,778 million yen

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

7,433

Nine-month period ended
December 31, 2009
106,602 million yen
2,523

2. Unrealized loss on valuation of investments and gain (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 set
forth in Financial Services – Investment Companies of the FASB Accounting Standards Codification Topic 946(ASC 946) andaccount for investment securities in accordance with ASC 946.
The net changes in the fair value of the investments are recorded as unrealized loss on valuation of investments and gain (loss)
on sale of investments at subsidiaries in the U.S., net and gain (loss) on sale of investments, computed based on the acquisition
cost, is also included in this account. The unrealized loss on valuation of investments and gain (loss) on sale of investments
included in unrealized loss on valuation of investments and gain (loss) on sale of investments at subsidiaries in the U.S., net in
the consolidated statements of income are as follows:
Three-month period ended
December 31, 2008
Unrealized loss on valuation of investment
at subsidiaries in the U.S.,net
Gain (loss) on sale of investments
at subsidiaries in the U.S.,net
Total

Three-month period ended
December 31, 2009

(558)

(264)

61

(631)

(497) million yen(896)

million yen

3. Loss on retirement of non current assets(1) Loss on retirement of non current assets related to the termination of second-generation mobile phone services
Certain pieces of telecommunications equipment being used exclusively for second-generation (2G) mobile phone services in
the Mobile communications business are scheduled to be removed upon termination of 2G mobile phone services in March,
2010. These pieces of telecommunications equipment are being depreciated under the straight-line method over the period
commencing from the acquisition of Vodafone K.K. (currently SOFTBANK MOBILE) in April 2006 to the scheduled
termination of 2G services in March, 2010.
In June 2009, a new frequency for the next generation mobile phone services was assigned to SOFTBANK MOBILE. The
telecommunications equipment being used for 2G mobile phone services except for the aforementioned equipment wasreviewed to determine which pieces would be used for the next generation mobile phone services and which pieces will be
removed. For the three-month period ended December 31, 2009, loss on retirement of non current assets was recorded for theassets to be additionally removed. As the assets to be removed upon termination of 2G services were specified, it became
possible to reasonably estimate the removal costs. These removal costs were included in loss on retirement of non current
assets in the consolidated statements of income for the three-month period ended December 31, 2009.
The loss on retirement of non current assts of ¥24,338 million consists of ¥17,884 million for equipment removal cost and¥6,453 million for loss on retirement of telecommunications equipment.
(2) Loss on retirement of non current assets related to the telecommunications equipment for third-generation mobile phone
SOFTBANK MOBILE replaced certain pieces of existing wireless network equipment in order to increase efficiency of the
future capital expenditures and reduce maintenance costs. As a result, the previously used wireless network equipment for
third-generation mobile phone services was retired, and the total carrying amounts of the retired assets and the related removal
costs were recorded as loss on retirement of non current assets in the consolidated statements of income for the three-month
period ended December 31, 2009. The loss on retirement of non current assets of ¥22,555 million consists of ¥13,719 million
for telecommunications equipment, ¥8,726 million for software, and ¥110 million for removal costs.

33

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the nine-month period ended December 31, 2009

(Consolidated Statements of Cash Flows)
1. Reconciliation of cash and cash equivalents to the amounts presented in the accompanying consolidated balance sheets
As of December 31, 2008
million yen

As of December 31, 2009

Cash and deposits

383,346

Marketable securities

3,960

4,149

Time deposits with original maturity over three months(460)(2,800)Stocks and bonds with original maturity over three months(3,143)(3,818)Cash and cash equivalents

383,703

million yen

605,749 million yen

603,279 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 and others purchase telecommunications equipment for the purpose of assembly, installation andinspection, SOFTBANK MOBILE and others sell the equipment to lease companies for sale and lease back purposes. 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.”34

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the nine-month period ended December 31, 2009

(Leases)
1. Finance lease transactions(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 and the Company.
(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, mainly 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 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 December 31, 2009

Telecommunications equipment andtelecommunications service lines
Acquisition cost
Accumulated depreciation
Accumulated impairment loss
Net leased property
Buildings and structures
Acquisition cost
Accumulated depreciation
Accumulated impairment loss

170,933(90,275)

171,192(77,309)(37,786)
42,871(37,786)
56,096

million yen

35,405

million yen

5,571
9,070
(6,224)(171)
2,675
243,659(118,099)(39,035)
86,52335

37,168million yen

17,227(8,424)(1,077)

16,925(10,275)(1,077)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

million yen

47,004(9,836)-

46,730(11,324)-

Net leased property
Property and equipment - others
Acquisition cost
Accumulated depreciation
Accumulated impairment loss

As of March 31, 2009

million yen

7,724

million yen

million yen

9,086(4,919)
(171)
3,996

million yen

million yen

244,511(100,489)(39,035)
104,986

million yen

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the nine-month period ended December 31, 2009

Long-term prepaid expenses relating to a lease contract, in which the contract term and payment term are different, as ofMarch 31, 2009 and December 31, 2009 were ¥19,867 million and ¥24,056 million, respectively and are included in“Other assets” of investments and other assets in the consolidated balance sheets. Current portion of long-term prepaid
expenses related to the lease contract in the amount of ¥714 million and ¥689 million as of March 31, 2009 andDecember 31, 2009 are included in “Other current assets” in the consolidated balance sheets.
(2) Obligations under finance lease at the end of each period:
As of December 31, 2009

Due within one year
Due after one year

As of March 31, 2009

30,726110,651

27,547
85,347
Total

112,894

million yen

141,378

million yen

Balance of allowance for impairment loss on
leased property

12,209million yen

18,809million yen(3) Lease payments, reversal of allowance for impairment loss on leased property, amounts equivalent to depreciation, andinterest expense for each period:(From April 1 to December 31, 2008 and 2009)
Nine-month period ended

Nine-month period ended

December 31, 2008

December 31, 2009

31,357

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

million yen

28,345

5,036

6,600

20,3108,241

18,376
6,669

million yen(From October 1 to December 31, 2008 and 2009)
Three-month period ended

Three-month period ended

December 31, 2008

December 31, 2009

10,191

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

million yen

9,299

1,674

2,200

5,873
3,466

6,118
2,117

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.

36

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the nine-month period ended December 31, 2009

(Investment in Debt and Equity Securities)
1. Marketable and investment securities at fair value(Millions of yen)

As of December 31, 2009
Investment
Carrying
Differences
Cost
Amount(1)(2)

Equity securities
OthersTotal

27,0742,474
29,54999,1082,818
101,926

72,033343
72,377

As of March 31, 2009
Investment
Carrying
Differences
AmountCost
25,2702,924
28,194

79,7902,671
82,46154,519(253)
54,266

2. Carrying amounts of the unlisted investment securities(Millions of yen)

As of December 31, 2009

As of March 31, 2009

Carrying Amounts

Carrying Amounts(1)Held-to-maturity debt securities
Unlisted foreign debt securities

¥700

¥700

Unlisted debt securities

699

299

Unlisted equity securities

68,40480,747

Investments in limited partnerships

6,229

6,732

Others

881

223

Total

¥76,913¥88,702(2)Available-for-sale and other securities

3. Investment securities evaluated at fair value under the provisions set forth in Financial Services – Investment
Companies of the FASB Accounting Standards Codification
Certain subsidiaries of the Company in the United States of America qualify as investment companies under the provisions set
forth in Financial Services – Investment Companies of the FASB Accounting Standards Codification Topic 946(ASC 946)
and account for investment securities in accordance with ASC 946.
The carrying amounts of the investment securities at fair value recorded in the consolidated balance sheets as of March 31,
2009 and December 31, 2009 were as follows:
As of December 31, 2009
Carrying amounts of investment securities at fair value :14,824 million yen

As of March 31, 2009
Carrying amounts of investment securities at fair value :18,064 million yen

37

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the nine-month period ended December 31, 2009

(Per Share Data)
1.

Shareholders’ equity per share
As of

As of

December 31, 2009

March 31, 2009

Shareholders’ equity per share (yen)2.

¥346.11¥428.84

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

For the nine-month period ended December 31, 2008 and 2009
April 1, 2008 to

April 1, 2009 to

December 31, 2008

December 31, 2009

Net income per share – primary (yen)

53.84

87.68

Net income per share – diluted (yen)

51.29

84.55

Basic data for computation of the per share data

April 1, 2008 to

April 1, 2009 to

December 31, 2008

December 31, 2009

1. Net income (in millions of yen)
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 each period (unit: thousand of shares)
5. Adjustment for net income used to calculate net income per share – diluted(in millions of yen)
– Interest expense (net of tax)
– Adjustments for net income used to calculate diluted net income
per share in consolidated subsidiaries and affiliated companies–Total6. Increase of common stock used to calculate net income per share– diluted(unit: thousand of shares)-

7. Residual securities which do not dilute net income per share

38

58,182

94,861--

58,182

94,861

1,080,653

1,081,880

1,167

722

(27)

(22)

1,140

700

75,97548,394-

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the nine-month period ended December 31, 2009

For the three-month period ended December 31, 2008 and 2009
October 1, 2008 to

October 1, 2009 to

December 31, 2008

December 31, 2009

Net income per share – primary (yen)

15.79

22.28

Net income per share – diluted (yen)

15.09

21.53

Basic data for computation of the per share data

October 1, 2008 to

October 1, 2009 to

December 31, 2008

December 31, 2009

1. Net income (in millions of yen)
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 each period (unit: thousand of shares)
5. Adjustment for net income used to calculate net income per share – diluted(in millions of yen)
– Interest expense (net of tax)
– Adjustments for net income used to calculate diluted net income
per share in consolidated subsidiaries and affiliated companies–Total6. Increase of common stock used to calculate net income per share– diluted(unit: thousand of shares)-

7. Residual securities which do not dilute net income per share

39

17,06624,110--17,06624,1101,080,783

1,082,313

389

240

(7)

(6)

381

233

75,64848,303-

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the nine-month period ended December 31, 2009(7) Segment Information
1. Business segment information
For the three-month period ended December 31, 2008 and 2009
From October 1, 2008 to December 31, 2008
Mobile(Millions of yen)

Broadband

Fixed-line

Internet

Elimination
e-Commerce

Others

Total

CultureConsolidated

Communications

Infrastructure

Telecommunications

or Corporate(1) Customers¥374,679¥56,988¥79,347¥63,136¥62,168¥16,944¥653,264¥-¥653,264(2) Inter-segment

2,181

1,388

10,849

1,111

2,537

3,611

21,680(21,680)-

Total

376,861

58,376

90,19664,24764,706

20,556674,945(21,680)

653,264

Operating income (loss)

46,747

14,3415,777

30,872

1,055(2,855)95,938(1,248)

94,690Net sales

From October 1, 2009 to December 31, 2009
Mobile(Millions of yen)

Broadband

Fixed-line

Internet

Elimination
e-Commerce

Others

Total

CultureConsolidated

Communications

Infrastructure

Telecommunications

or Corporate(1) Customers¥429,353¥48,808¥74,345¥67,467¥61,474¥14,578¥696,028¥-¥696,028(2) Inter-segment

2,708

982

11,732

1,264

2,909

4,215

23,812(23,812)-

Total

432,061

49,791

86,077

68,73264,384

18,793

719,841(23,812)

696,028

Operating income (loss)

83,336

12,1786,514

34,372

1,628(1,180)136,849(1,152)

135,697

Net sales

For the nine-month period ended December 31, 2008 and 2009
From April 1, 2008 to December 31, 2008
Mobile(Millions of yen)

Broadband

Fixed-line

Internet

Elimination
e-Commerce

Others

Total

CultureConsolidated

Communications

Infrastructure

Telecommunications

or Corporate¥1,144,846¥173,958¥235,976¥187,278¥184,460¥55,742¥1,982,262¥-¥1,982,262

5,975

4,456

32,678

2,555

8,227

10,82264,715(64,715)-

Total

1,150,822

178,415

268,655

189,833

192,687

66,564

2,046,978(64,715)

1,982,262

Operating income (loss)

134,91136,606

11,33592,060

3,802

(230)

278,485(3,795)

274,690

Net sales(1) Customers(2) Inter-segment

From April 1, 2009 to December 31, 2009
Mobile(Millions of yen)

Broadband

Fixed-line

Internet

Elimination
e-Commerce

Others

Total

CultureConsolidated

Communications

Infrastructure

Telecommunications¥1,256,766¥152,154¥225,912¥196,419¥165,976¥48,074¥2,045,304¥-¥2,045,304

7,487

3,174

32,774

3,442

8,573

13,35268,806(68,806)-

Total

1,264,254

155,328

258,687

199,862

174,550

61,426

2,114,110(68,806)

2,045,304

Operating income (loss)

215,11239,40914,344

98,526

3,790(1,341)

369,841(3,522)366,319or Corporate

Net sales(1) Customers(2) Inter-segment

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

40

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the nine-month period ended December 31, 2009

2. Geographic segment information
For the three-month period ended December 31, 2008 and 2009
From October 1, 2008 to December 31, 2008

(Millions of yen)North
AmericaJapan

OthersEliminationor corporate

Total

Consolidated

Net sales(1) Customers¥649,496¥242¥3,525¥653,264¥-¥653,264

88

-

-

88

(88)

-

Total

649,585

242

3,525

653,353(88)

653,264

Operating income (loss)

96,565

(451)

(151)

95,961(1,271)

94,690(2) Inter-segment

From October 1, 2009 to December 31, 2009

(Millions of yen)North
AmericaJapan

OthersEliminationor corporate

Total

Consolidated

Net sales(1) Customers¥693,823¥237¥1,968¥696,028¥-¥696,028

629

-

-

629

(629)

-

Total

694,452

237

1,968

696,657(629)

696,028

Operating income (loss)

137,717

(278)

(135)

137,304(1,606)135,697(2) Inter-segment

For the nine-month period ended December 31, 2008 and 2009
From April 1, 2008 to December 31, 2008

(Millions of yen)North
AmericaJapan

OthersEliminationor corporate

Total

Consolidated

Net sales(1) Customers¥1,971,335¥811¥10,115¥1,982,262¥-¥1,982,262

308

-

-

308

(308)

-

Total

1,971,644

811

10,115

1,982,571(308)

1,982,262

Operating income (loss)

277,254

2,459

(390)

279,322(4,632)

274,690(2) Inter-segment

From April 1, 2009 to December 31, 2009

(Millions of yen)North
AmericaJapan

OthersEliminationor corporate

Total

Consolidated

Net sales(1) Customers¥2,038,725¥762¥5,816¥2,045,304¥-¥2,045,304

855

-

-

855

(855)

-

Total

2,039,580

762

5,816

2,046,159(855)

2,045,304

Operating income (loss)

371,928

(749)

(407)

370,772(4,452)366,319(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 ¥3,502 million and credited it to operating expenses for the nine-month period ended
December 31, 2008.

41

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the nine-month period ended December 31, 2009

3. Overseas sales
Disclosures of overseas sales for the three-month and the nine-month periods ended December 31, 2008 and 2009 were omitted because
the total overseas sales were less than 10% of total consolidated sales.

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

42