SOFTBANK CORP.
CONSOLIDATED FINANCIAL REPORTFor the fiscal year ended March 31, 2009
Tokyo, April 30, 2009

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%Fiscal year ended
March 31, 2009

¥2,673,035(3.7)¥359,121

10.7¥225,661(12.7)¥43,172(60.3)

Fiscal year ended
March 31, 2008

¥2,776,168

9.1¥324,287

19.6¥258,614

68.6¥108,624

277.0

Net income
per share－basic(yen)

Net income
per share－diluted(yen)

Fiscal year ended
March 31, 2009¥39.95

Fiscal year ended
March 31, 2008

¥101.68

Note: Equity in earnings of affiliated companies :Fiscal Year ended March 31, 2009:
Fiscal Year ended March 31, 2008:

Return on Equity(%)

Ordinary income /Total assets (%)

Operating income /Net sales (%)¥38.64

11.4

5.1

13.4

¥95.90

32.6

5.8

11.7

¥(13,759) million¥55,411 million(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 March 31, 2009

¥4,386,672¥824,798

8.5¥346.11

As of March 31, 2008

¥4,558,901¥848,725

8.4¥355.15

Note: Shareholders’equity (consolidated)
As of March 31, 2009:
As of March 31, 2008:¥374,094 million¥383,742 million(3) Cash Flows(Millions of yen; amounts less than one million yen are omitted.)

Operating activities

Investing activities

Financing activities

Cash and cash
equivalents
at the end of the year

Fiscal year ended
March 31, 2009

447,857(266,295)(210,348)

457,644

Fiscal year ended
March 31, 2008

¥158,257¥(322,461)¥284,727¥490,266

12. Dividends
Dividends per shareFirst quarter Second quarter(Record date)(yen)

FY 2008
FY2009FY 2010(Forecasted)

3.

(yen)

Third
quarter

Fourthquarter

(yen)

Total

(yen)

Total
Amount ofdividends(Annual)Payout ratio(Consolidated)

Dividends
on equity(Consolidated)(yen)(millions of yen)

%

%

2,701
2,702

2.5
6.3

0.8
0.7

-

0.00
0.00

-

2.50
2.50

2.50
2.50

-

0.00

-

5.00

5.00

-

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

Operating income
First-half financial year
Full financial year

¥ -

- (%)

¥420,000

16.9(%)

4. Others(1) Significant Changes in Scope of Consolidation (Changes in Scope of Consolidation of Specified Subsidiaries):

None(2) Changes in accounting principles, procedures, disclosure methods, etc., used in the presentation of the consolidated financial
statements (Changes described in “(7) Change in accounting policies”)[1] Changes due to revisions in accounting standards: Yes[2] Changes other than those in [1]: No(3) Number of shares issued (Common stock)[1] Number of shares issued (including treasury stock):
As of March 31, 2009:
As of March 31, 2008:

1,081,023,978 shares
1,080,664,578 shares[2] Number of treasury stock:
As of March 31, 2009:
As of March 31, 2008:

169,204 shares
163,811 shares

2[For Reference]
FINANCIAL HIGHLIGHTS (Non-Consolidated)1.

Non-Consolidated Results of Operations(Millions of yen; amounts less than one million yen are omitted.)

Net sales

2.

Operating income

Ordinary loss

Net income

Amount%Amount%Amount%Amount%Fiscal year ended
March 31, 2009¥12,343(3.7)¥3,064(36.9)¥(19,789)-¥2,785(57.0)

Fiscal year ended
March 31, 2008

¥12,817-¥4,857-¥(15,388)-¥6,474-

Net income
per share－basic(yen)

Net income
per share－diluted(yen)

Fiscal year ended
March 31, 2009¥2.58

¥ 2.58

Fiscal year ended
March 31, 2008

¥6.06

¥ 6.03

Non-Consolidated Financial Condition(Millions of yen; amounts less than one million yen are omitted.)

Total assets

Net Assets

Equity ratio (%)

Shareholders' equity
per share (yen)As of March 31, 2009

¥1,349,878¥401,665

29.8¥371.62

As of March 31, 2008

¥1,336,787¥415,403

31.1¥384.45

Note: Shareholders’equity (non-consolidated)
As of March 31, 2009:
As of March 31, 2008:¥401,665 million¥415,403 million* Notes to forecasts on the consolidated operating results and another item
1.
2.

The forecast figures are estimated based on the information which the company is able to obtain at present point and the assumption which isdeemed to be reasonable. However, actual results may be different due to various factors.
The earning forecasts for interim period ending September 31, 2009 are not disclosed.

3

SOFTBANK CORP. CONSOLIDATED FINANCIAL REPORTFor the fiscal year ended March 31, 2009

Qualitative Information / Financial Statements

1. Results of Operations(1) Analysis of Results of Operations
1. Consolidated Results of Operations<<Summary of Results of Operations>>
Net sales¥ 2,673,035 million (3.7% decrease year-on-year)

Operating income¥ 359,121 million (10.7% increase year-on-year)

Ordinary income¥ 225,661 million (12.7% decrease year-on-year)

Net income¥ 43,172million (60.3% decrease year-on-year)<Overview of results for the period ended March 31, 2009 (fiscal year from April 1, 2008 to March 31, 2009)>
The SOFTBANK Group (hereinafter ‘the Group’) designated the fiscal year ended March 2009 (April 1, 2008 to March
31, 2009; hereinafter ‘this fiscal year’) as the ‘Year of the Internet Machine,’ and strove to further realize the potential andpopularize mobile Internet use. Efforts during this fiscal year include the sales of attractive mobile handsets like Apple’s
iPhone™ 3G, and the provision of FMC services*1 including White Call 24, White Line 24, and White Office by theGroup’s three telecommunication companies—SOFTBANK MOBILE Corp. (hereinafter ‘SOFTBANK MOBILE’),SOFTBANK BB Corp. (hereinafter ‘SOFTBANK BB’), and SOFTBANK TELECOM Corp. (hereinafter ‘SOFTBANKTELECOM’)—.

Moreover effective promotions in the peak sales periods and aggressive acquisition of corporate

subscribers were also implemented. SOFTBANK MOBILE introduced attractive mobile content including as ‘MOBILEWIDGET’ and ‘S-1 BATTLE’.
As a result, SOFTBANK MOBILE has achieved the industry’s highest number of monthly net subscriber
additions—new subscribers minus cancellations—for 23 consecutive months, going through March 2009. Continuing
the pace set in the previous fiscal year ended March 2008 (April 1, 2007 to March 31, 2008; hereinafter ‘the previous
fiscal year’), net subscriber additions were also the highest on a full-year basis, with 2,046,700 net additions during thisfiscal year.

As of the end of this fiscal year, the total number of subscribers stood at 20,632,900, with 3G subscribers

constituting more than 90% of this total.
As a result of these efforts, the Group’s net sales for this fiscal year totaled ¥2,673,035 million and operating income
came to ¥359,121 million, for the fourth consecutive year of record operating income.
The Group also began releasing earnings forecasts for consolidated operating income and consolidated free cash flowfrom the second quarter ended September 30, 2008 (announced on October 29, 2008), and consolidated operating income
and consolidated free cash flow this fiscal year exceeded those forecasts.
*1 Fixed Mobile Convergence services: telecommunications services that integrate the functions of mobile communications andfixed-line telecommunications.

4SOFTBANK CORP. CONSOLIDATED FINANCIAL REPORTFor the fiscal year ended March 31, 2009

<Quarterly Results>(Millions of yen)

Fiscal
year
ended
March
31, 2007
Full year
Net sales
OperatingincomeOrdinary
incomeNet
income(loss)

Fiscal year ended March 31, 2008

Q1

Q2

Q3

Q4

Full year

Fiscal year ended March 31, 2009

Q1

Q2

Q3

Q4

Full year

2,544,219 663,084 701,660 694,020 717,402 2,776,168 647,255 681,742 653,264 690,772 2,673,035
271,065

78,74689,00092,44164,098324,287

85,086

94,913

94,69084,430359,121

153,423

51,15460,010 120,833

26,615

258,61454,272

63,04357,17851,167

225,661

28,81525,13021,331

15,427

108,624

19,36821,747

17,066 (15,009)

43,172

46,734(a) Net Sales
Net sales amounted to ¥2,673,035 million a decline of ¥103,132 million (3.7%) year-on-year.

This decrease wasprimarily the result of a ¥67,961 million decline in net sales at the Mobile Communications segment on lower handset
sales.

(b) Operating Income
Operating income totaled ¥359,121 million, an increase of ¥34,833 million (10.7%) year-on-year.

The maincontributions to this growth came from continued cost reductions at SOFTBANK TELECOM and SOFTBANK BB,
combined with steady profit growth at Yahoo Japan Corporation (hereinafter ‘Yahoo Japan’), and increase in operating
income at the Fixed-line Telecommunications segment by ¥15,628 million (467.9%), the Internet Culture segment by¥9,860 million (8.6%), and the Broadband Infrastructure segment by ¥7,553 million (19.0%).
The cost of sales for this fiscal year was ¥1,365,903 million, down ¥101,460 million (6.9%) year-on-year. Thisdecline was due primarily to a lower cost of goods sold in the Mobile Communications and e-Commerce segment and adecrease in telecommunication equipment usage fees at the three telecommunication companies.

Selling, general andadministrative expenses came to ¥948,011 million, a decrease of ¥36,506 (3.7 %) year-on-year. This decline wasprimarily attributable to lower expenses related to doubtful accounts at the Mobile Communications segment and lower
selling-related expenses at the Broadband Infrastructure segment.

(c) Non-operating Income
Non-operating income came to ¥13,016 million, a decrease of ¥56,371 million (81.2%) year-on-year. After recording a¥55,411 million gain from equity in earnings under the equity-method of affiliated companies in the previous fiscal year, a¥13,759 million loss from equity earnings of affiliated companies was recorded as a non-operating expense this fiscal year.
The primary component of the previous fiscal year’s gain in equity was ¥57,223 million from the new listing of
Alibaba.com Limited, a subsidiary of the Group’s equity-method affiliate Alibaba Group Holding Limited, on the Hong
Kong Stock Exchange on November 6, 2007.

5

SOFTBANK CORP. CONSOLIDATED FINANCIAL REPORTFor the fiscal year ended March 31, 2009(d) Non-operating Expenses
Non-operating expenses were ¥146,475 million, an increase of ¥11,414 million (8.5%) year-on-year. The deteriorationin the equity market during the year led to a downturn in the performance of investment funds accounted for by theequity- method, resulting in an equity-method investment loss of ¥13,759 million. On the other hand, interest expenses
decreased by ¥2,517 million, to ¥112,345 million.

(e) Special Income
Special income totaled ¥11,212 million, primarily from the recognition of a ¥3,454 million gain on sale of investment
securities and a ¥2,972 million gain on the liquidation of a subsidiary.

(f) Special Loss
The special loss came to ¥129,535 million. This was mainly from the recording of ¥75,000 million in relation to
in-substance redemption before maturity (debt assumption) executed in the past for the outstanding bonds of SOFTBANKMOBILE Corp., as loss on additional entrustment for debt assumption. An impairment loss of ¥29,478 million was also
recorded, the main component of which was a ¥28,999 million write-off of the entire book value and removal costs for
assets related to the Yahoo! BB hikari service. This impairment of assets related to Yahoo! BB hikari was coincident
with the launch of the new fiber-optic Internet connection service Yahoo!BB hikari with FLET’S*2 in this segment.
*2 FLET’S is a trademark of Nippon Telegraph and Telephone East Corporation (NTT East) Nippon Telegraph and Telephone West
Corporation (NTT West)(g) Income Taxes and Others
Current income taxes of f¥39,390 million were recorded, at the same time deferred income taxes of ¥19,674 million wererecorded as credit. Current income taxes declined as a result of the transfer and utilization of loss carryfowards held by
SOFTBANK IDC SOLUTIONS Corp. (hereinafter ‘SOFTBANK IDC’) to Yahoo Japan along with the merger of Yahoo
Japan and SOFTBANK IDC on March 30, 2009.

Taking the earnings stability and the lesser importance of the balanceof loss carryforwards at SOFTBANK BB into consideration, deferred income taxes were recorded as a credit, reflecting
the improved collectability of the deferred tax assets.
In addition, ¥44,450 million was recorded as minority interests in net income. As a result, the net income for this fiscal
year came to ¥43,172 million.

6

SOFTBANK CORP. CONSOLIDATED FINANCIAL REPORTFor the fiscal year ended March 31, 2009

2. Results by Business Segment(a) Mobile Communications<<Summary of Segment Results>>
Net sales¥1,562,890 million(4.2% decrease year-on-year)¥171,389 million(1.8% decrease year-on-year)

Operating income

Net subscriber additions totaled 2,046,700 for this fiscal year.
No. 1 in monthly net additions for 23 consecutive months through March 2009.
Total number of subscribers at the end of this fiscal year reached 20.63 million, of which 18.65 million were 3G
subscribers.

<Analysis of Results>
Net sales were ¥1,562,890 million, down ¥67,961 million (4.2%) year-on-year. Operating income decreased by ¥3,180
million (1.8%) year-on-year to ¥171,389 million.

The decrease in net sales was primarily a reflection of a decline in

number of handsets sold at SOFTBANK MOBILE, the segment’s core company, however due to a steady increase insubscribers, the trend in telecom service revenue was positive this fiscal year.

The decline in handset sales reflects the

economic slow down and longer handset tenure throughout the industry after the introduction of the installment sales
method, which was first introduced by SOFTBANK MOBILE and later on by competitors, etc. During the fourth quarterthe net sales in this segment increased compared to the same period of the previous fiscal year.
A special loss of ¥75,000 million was recorded as loss on additional entrustment for debt assumption in relation to
in-substance redemption before maturity (debt assumption) executed in the past for the outstanding bonds of SOFTBANKMOBILE.
<Quarterly Results>(Millions of yen)
Fiscal year
ended
March 31,2007
Full year
Net sales
Operating income

Fiscal year ended March 31, 2008

Q1

Q2

Q3

Q4

1,442,040 391,668 422,841 406,081 410,260
155,743

43,52850,69153,76026,589Fiscal year ended March 31, 2009

Full year

Q1

Q2

Q3

Q4

1,630,851 372,585 401,375 376,861 412,068
174,570

44,27343,89046,74736,478Full year
1,562,890
171,389<Number of Mobile Phone Subscribers>
Net subscriber additions (new subscribers minus cancellations) at SOFTBANK MOBILE for this fiscal year totaled
2,046,700 (a 11.0% increase year-on-year,) maintaining SOFTBANK MOBILE’s top position on an annual basis withmore than two million net additions for the second consecutive year. The number of SOFTBANK MOBILE subscribers
totaled 20,632,900*3 as of the fiscal year end, while market share of cumulative subscribers rose 1.1 percentage points to
19.2% from the end of the previous fiscal year.
representing more than 90% of total subscribers.

In addition, the number of 3G subscribers totaled 18,653,600,

SOFTBANK MOBILE continues to promote the migration to 3G in

7

SOFTBANK CORP. CONSOLIDATED FINANCIAL REPORTFor the fiscal year ended March 31, 2009

advance of the scheduled termination of its 2G service on March 31, 2010.
*3 The total number of subscribers for SOFTBANK MOBILE includes communication module service subscribers. The number ofcommunication module service subscribers at the end of this fiscal year was 56,200.

(Thousands of lines)
Fiscalyear
ended
March 31,2007
Full year

Fiscal year ended March 31, 2008

Fiscal year ended March 31, 2009

Q1

Q2

Q3

Q4

Full year

Q1

Q2

Q3

Q4

Full year

Net
additions

698.6

530.8

612.0

561.0

972.7

2,676.5

525.5

521.4

366.6

633.1

2,046.7

Total

15,908.5

16,440.5

17,052.5

17,613.5

18,586.2

18,586.2

19,111.7

19,633.2

19,999.8

20,632.9

20,632.9<Churn Rate and Upgrade Rate>
The churn rate for this fiscal year was 1.00%, a 0.32 percentage point improvement year-on-year. The upgrade rate inthis fiscal year improved by 0.49 percentage point to 1.71%.
(% per month)Fiscal
year
ended
March
31, 2007
Full year

Fiscal year ended March 31, 2008

Q1

Q2

Q3

Q4

Fiscal year ended March 31, 2009

Full year

Q1

Q2

Q3

Q4

Full year

Churn
rate

1.50

1.46

1.42

1.21

1.19

1.32

0.98

0.98

0.91

1.13

1.00

(3G
only)*4

1.54

1.07

1.05

0.88

0.85

0.95

0.72

0.76

0.69

0.90

0.77

Upgrade
rate

2.61

2.25

2.67

2.00

1.93

2.20

1.27

1.91

1.67

1.98

1.71

*4 Excludes 3G Prepaid Service.

<ARPU and Average Acquisition Commission per User>
Total ARPU*5 for this fiscal year was ¥4,070, the decline in total ARPU was a reflection of the decrease in voice ARPU
due to an increase in the number of users with Monthly Discounts*6, a special discount for subscribers to New Super
Bonus, etc. There were also one-time factors which had an impact during the fourth quarter including access charge
tariff revisions between carriers and the fact that the previous fiscal year was a leap year. On the other hand, data ARPU
rose ¥250 year-on-year to ¥1,740 and accounted for 42.8% of total ARPU.
The average acquisition commission per user during the fourth quarter was ¥45,300.
* 5 Average Revenue Per User
* 6 The name of New Super Bonus Special Discount was changed to Monthly Discounts on November 1, 2008.

8

SOFTBANK CORP. CONSOLIDATED FINANCIAL REPORTFor the fiscal year ended March 31, 2009

(Yen per month)Fiscal year
ended
March 31,2007

Fiscal year ended March 31, 2008

Fiscal year ended March 31, 2009

Full year

Q1

Q2

Q3

Q4

Full year

Q1

Q2

Q3

Q4

Full year

Total

5,510

5,000

4,800

4,520

4,310

4,650

4,180

4,170

4,090

3,830

4,070

(Voice)

4,150

3,590

3,340

3,040

2,710

3,150

2,530

2,460

2,300

2,020

2,320

(Data)

1,360

1,410

1,470

1,490

1,600

1,490

1,650

1,710

1,790

1,820

1,740

9

SOFTBANK CORP. CONSOLIDATED FINANCIAL REPORTFor the fiscal year ended March 31, 2009(b) Broadband Infrastructure<<Summary of Segment Results>>
Net sales¥235,199 million(8.9 % decrease year-on-year)

Operating income¥47,253 million(19.0% increase year-on-year)

Total installed lines for Yahoo! BB ADSL: 4,299,000 (as of this fiscal year end)
Progress was made in improving the operating margin by reducing expenses<Analysis of Results>
Net sales totaled ¥235,199 million, which was down ¥22,869 million (8.9%) year-on-year. Operating income rose
¥7,553 million year-on-year (19.0%) to ¥47,253 million.

Revenue from the ADSL business of core company

SOFTBANK BB is trending lower on a decline in aggregate lines installed, but the trend of profit growth continues
because of a decrease in sales related expenses like acquisition incentives and lower depreciation for telecommunications
equipment, leasing expenses, etc.
<Quarterly Results>(Millions of yen)
Fiscal
year
ended
March
31, 2007
Full year

Fiscal year ended March 31, 2008
Q1

Q2

Q3

Q4

Full year

Fiscal year ended March 31, 2009
Q1

Q2

Q3

Q4

Full year

Net sales

264,227 65,747 64,072 64,340 63,908 258,069 60,127 59,911 58,376 56,784

235,199

Operatingincome26,80947,253

8,665 10,320 11,309

9,404 39,700 10,475 11,789 14,341 10,646<Overview of Operations>
The number of installed lines for Yahoo! BB ADSL, the comprehensive broadband service provided by SOFTBANK BB,
totaled 4,299,000 lines at this fiscal year end, and ARPU for the fourth quarter was ¥4,262 on a customer payment basis.
SOFTBANK BB launched the Yahoo! BB White Plan a two-tiered flat-rate ADSL service, with a basic rate*7 of as low
as ¥980, on December 1, 2008.

The SoftBank Keitai Set Discount, a bundled service for users of both the Yahoo! BB

White Plan and SoftBank 3G phones, was also launched on the same day.

By cross-selling with SOFTBANK MOBILE,

SOFTBANK BB is creating synergies across the Group companies, leading to enhanced competitiveness.
The Yahoo!BB hikari with FLET’S service was launched in February 2009 to address customer demand for a diverse
range of broadband services. In connection with this launch, a ¥28,999 million impairment loss representing the entire
book value and removal costs for assets related to the previous Yahoo! BB hikari was recorded as a special loss.
*7 Basic rate + provider charge

10SOFTBANK CORP. CONSOLIDATED FINANCIAL REPORTFor the fiscal year ended March 31, 2009(c) Fixed-line Telecommunications<<Summary of Segment Results>>
Net sales¥363,632 million(1.9% decrease year-on-year)

Operating income¥18,968 million(467.9% increase year-on-year)

Total installed lines for OTOKU Line: 1,608,000 (as of this fiscal year end)
As a result of fixed cost reductions and an increase in the number of lines for OTOKU Line, operating income
increased 467.9% year-on-year.

<Analysis of Results>
Net sales were ¥363,632 million, down ¥7,108 million (1.9%) year-on-year. Operating income totaled ¥18,968 million,
an increase of ¥15,628 million (467.9%) year-on-year. At the core company SOFTBANK TELECOM, revenue from theOTOKU Line direct connection fixed-line voice service and from corporate sales of mobile phones continued to show
steady growth, but the downward trend in revenue from existing voice services including MY LINE and international
telephone services continued. Nevertheless, the segment is showing a trend of profit growth on improved management
efficiency including continued fixed cost reductions, and growth in the number of lines with high profitability likeOTOKU Line and Ether Connect.
<Quarterly Results>(Millions of yen)
Fiscal
year
ended
March
31, 2007
Full year

Net sales
Operating income(loss)

Fiscal year ended March 31, 2008
Q1

Q2

Q3

Q4

Fiscal year ended March 31, 2009

Full year

Q1

Q2

Q3

Q4

Full year

374,129 90,486 90,986 89,979 99,288 370,740 88,453 90,005 90,196 94,977

363,632(2,965)

18,968

(111)

460

1,375

1,615

3,340

798

4,759

5,777

7,632

<Overview of Operations>
SOFTBANK TELECOM continues to leverage its core OTOKU Line service to expand its corporate customer base.
The number of OTOKU Line lines installed is increasing steadily and stood at 1,608,000 as of this fiscal year end, for an
increase of 206,000 (14.7%) from the end of the previous fiscal year. Corporate customers constituted 77.6% of the total
number of lines, and this figure continues to rise.
SOFTBANK TELECOM launched the White Line 24 discount service, which provides free domestic voice calls, 24hours a day, between subscribers of SOFTBANK TELECOM’s OTOKU Line service and SoftBank mobile phones (WhitePlan), in June 2008.

SOFTBANK TELECOM also began accepting applications for the White Office corporate FMC

service, which enables mobile phones to be used as extension lines of fixed-line telephones, in March 2009.
SOFTBANK TELECOM will keep working to enhance synergies with the Mobile Communications segment and further
strengthen the corporate business.

11

SOFTBANK CORP. CONSOLIDATED FINANCIAL REPORTFor the fiscal year ended March 31, 2009(d) Internet Culture<<Summary of Segment Results>>
Net sales¥254,238 million(2.7% increase year-on-year)

Operating income¥125,098 million(8.6% increase year-on-year)<Analysis of Results>
Net sales increased by ¥6,595 million (2.7%) year-on-year to ¥254,238 million.

Operating income increased by ¥9,860

million (8.6%) year-on-year to ¥125,098 million.
<Quarterly Results>(Millions of yen)
Fiscal year
ended
March 31,2007
Full year

Q1

Q2

Q3

Q4

Full year

Q1

Q2

Q3

Q4

Net sales

194,21252,796

57,623

66,50570,717

247,642

62,326

63,25964,24764,404

254,238

Operating income

96,544

27,14827,76628,864

31,457

115,237

30,54230,64530,87233,037125,098

Fiscal year ended March 31, 2008

Fiscal year ended March 31, 2009
Full year<Overview of Operations>
In the advertising business of Yahoo Japan, the core company of the segment, display advertising sales grew more than
100% compared to the last fiscal year due to higher recognition of behavioral targeting and demographic targeting
advertising.

Increased synergies with consolidated subsidiary Overture K.K. in the paid search advertising, andenhanced adoption of media outside the Yahoo Group lead to approximately 40% growth in sales. However, due to thesudden worsening of the economic situation in the latter half of the year, the display advertising sales declined, and there
was a large decrease in placements of paid search advertisements in certain industries. The growth in interest-linked
advertising Interest Match™, which was started in September, continued and mobile advertising also grew mainly on paid
search advertising sales.
In business services other than advertising, Yahoo! Shopping continued its efforts during the period such as developing
sales promotions in line with the season etc. as well as simplification of the shopping procedures and the addition of
shopping item review functions in order to enhance the usability.

As a result, the transaction volume expanded. The

number of merchant stores registered on Yahoo! Shopping and Yahoo! Auctions totaled 32,843, expanding by 1,554 stores,
or 5.0% year-on-year.

Tenant and commission fees for Yahoo! Shopping and Yahoo! Auctions also expanded favorably

helped by the upward revision in Yahoo! Auctions store royalties that began in December.
In the personal service business, due to efforts by the Yahoo! Premium service to add special benefits for members,
such as member-exclusive services, and to increase value-added content, the number of Yahoo! Premium membership IDs
rose to a record high of 7.36 million (an increase of 6.4% year-on-year) and sales increased approximately 20% despite
the increased monthly membership fee in December.
SOFTBANK IDC Solutions Corp. was merged by absorption into Yahoo Japan on March 30, 2009 this will allow
Yahoo Japan to reduce data center related costs and build a strategic base for the next generation Internet business.

12

SOFTBANK CORP. CONSOLIDATED FINANCIAL REPORTFor the fiscal year ended March 31, 2009(e) e-Commerce<<Summary of Segment Results>>
Net sales¥258,184 million(4.6% decrease year-on-year)¥4,636 million(46.9% increase year-on-year)

Operating income<Analysis of Results>
Net sales were ¥258,184 million, which was ¥12,539 million (4.6%) less year-on-year. Operating income rose ¥1,479
million (46.9%) year-on-year to ¥4,636 million.
<Quarterly Results>(Millions of yen)
Fiscal
year
ended
March
31, 2007
Full year

Q1

Q2

Q3

Q4

Full year

Q1

Q2

Q3

Q4

Net sales

271,570

61,66063,812

69,63475,615

270,723

62,45965,52264,70665,496258,184

Operating income

6,680

1,167

933

809

246

3,156

1,009

1,737

1,055

833

4,636

Fiscal year ended March 31, 2008

Fiscal year ended March 31, 2009
Full year<Overview of Operations>Core company SOFTBANK BB’s Commerce & Service Division posted solid sales of hardware and software to retailcustomers, but the deterioration in the market environment from autumn 2008 has led to a large decline in corporate sales,
and net sales declined as a result.

On the other hand, continuous improvement of operational efficiency andreadjustment of the product mix supported revenue. In addition, SoftBank SELECTION, launched in November 2007,
began to contribute to earnings as the lineup of mobile phone accessories was expanded and the number of stores
handling these products increased.
This segment will continue to pursue additional synergies with telecommunication related companies in the Group as itstrengthens its sales of mobile phone accessories, PC and mobile software, and corporate solutions packaged aroundtelecommunications lines.

(f) Others<Analysis of Results>
Net sales decreased by ¥11,646 million (11.7%) year-on-year to ¥88,226 million.

The operating loss was ¥194 million,

compared with the previous fiscal year’s loss of ¥5,121 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

13

SOFTBANK CORP. CONSOLIDATED FINANCIAL REPORTFor the fiscal year ended March 31, 2009

allotment of shares carried out on May 16, 2008. The Broadmedia segment was therefore disbanded at the beginning of
this fiscal year.
<Quarterly Results>(Millions of yen)
Fiscal
year
ended
March
31, 2007
Full year

Net sales

90,785

Fiscal year ended March 31, 2008
Q1

Q2

Q3

Q4

24,871

26,90723,18424,909Operatingincome (loss) （4,730） （689）

Fiscal year ended March 31, 2009

Full year
99,873

Q1

Q2

Q3

Q4

21,81824,18920,556

21,662

88,226

3,383 （2,855）

36

（194）

38 （2,617） （1,852） （5,121） （758）14Full year

SOFTBANK CORP. CONSOLIDATED FINANCIAL REPORTFor the fiscal year ended March 31, 2009

3. Earnings Forecasts
The Group is forecasting consolidated operating income of ¥420.0 billion and consolidated free cash flow of ¥250.0 billion
for the fiscal year ending March 31, 2010.
These forecasts anticipate improvements from this fiscal year of ¥60.8 billion for consolidated operating income and¥68.4 billion for consolidated free cash flow.

The Group will endeavor to achieve these forecasts and continue to improve

cash flowｓ through activities to improve earnings, primarily at the Mobile Communications segment where sales have beenstrong, combined with efficient capital expenditure.
<Earnings Forecasts>(Billions of yen)
Results
Fiscal year ended March 31, Fiscal year ended March 31,
2008 (FY2007)2009 (FY2008)
Consolidated operating
incomeConsolidated free cash
flow*8

Forecast
Fiscal year ending March
31, 2010 (FY2009)

324.2

359.1

420.0

(164.2)

181.5

250.0

*8 The combined net consolidated cash flows from operating activities and investing activities
Consolidated net sales are greatly influenced by the sales method used for mobile handsets, which makes it difficult toforecast business results.

In addition, the Company holds a variety of investment securities and invests in funds that arevulnerable to the market environment, making it difficult to estimate earnings under the equity-method and special
income/loss, and for this reason, meaningful earnings forecasts for consolidated ordinary income and consolidated net
income cannot be provided at this time.
The Group’s main activities are in the Internet and telecommunications industry in which the market situation changes
rapidly. There is therefore a possibility that new sales method etc. will be introduced flexibly in the future in response tochanges in the market situation. In this market environment it is difficult to make forecasts, therefore the Group does notdisclose earnings forecasts for the interim period ending September 30, 2009..

15

SOFTBANK CORP. CONSOLIDATED FINANCIAL REPORTFor the fiscal year ended March 31, 2009

(2) Analysis of Financial Position<<Summary of the Consolidated Financial Position>>
Total assets¥4,386,672 million(3.8% decrease year-on-year)

Total liabilities¥3,561,873 million(4.0% decrease year-on-year)¥824,798 million(2.8% decrease year-on-year)

EquityCash flows from operating activities¥447,857 million provided

Cash flows from investing activities¥266,295 million used

Cash flows from financing activities¥210,348 million used

Balance of cash and cash equivalents¥457,644 million(¥32,622 million decrease from the endof March 2008)

1. Assets, Liabilities and Equity
Assets, liabilities, and equity at the end of this fiscal year were as follows:(a) Current Assets
Current assets decreased by ¥62,431 million from the end of the previous fiscal year, to ¥1,520,313 million. This decrease
was primarily due to a ¥33,207 million decline in cash and deposits as the result of the acquisition of treasury stock by
Yahoo Japan, and a ¥29,638 million decline in notes and accounts receivable–trade that reflected lower sales at
SOFTBANK BB’s Commerce & Service Division and an increase in internal transactions from SOFTBANK TELECOM
PARTNERS Corp. being made a subsidiary.

At the end of this fiscal year, SOFTBANK MOBILE’s accounts receivables

were classified by uncollected period, ¥48,294 million which exceeded the normal operating cycle was transferred toinvestments and other assets as long-term pending claims, resulting in the transfer of the corresponding allowance of
doubtful accounts to investments and other assets.

(b) Fixed Assets
Property and equipment, net, decreased by ¥28,318 million from the end of the previous fiscal year, to ¥1,000,946 million.
This decline was primarily due to depreciation and amortization, and a ¥16,212 million impairment write-down on
dedicated assets of Yahoo! BB hikari. Intangible assets decreased by ¥16,200 million from the end of the previous fiscal
year, to ¥1,222,108 million. This included a ¥44,208 million increase in goodwill associated with making SOFTBANKTELECOM PARTNERS Corp. a consolidated subsidiary of SOFTBANK TELECOM, and from the acquisition of treasury
stock by Yahoo Japan Corporation. This was more than offset, however, by ¥61,111 million in amortization of goodwill
mainly relating to SOFTBANK MOBILE and SOFTBANK TELECOM.
Investments and other assets decreased by ¥63,782 million from the end of the previous fiscal year, to ¥641,980 million.
This decrease was primarily the result of a ¥144,894 million decrease in investment securities associated with a decline in
the share price of Yahoo! Inc. in the U.S. At the same time, with the revaluation of the collectability of the deferred tax
assets at SOFTBANK BB, etc. deferred tax assets grew by ¥31,340 million

In addition, ¥48,294 million of long-term

pending claims from accounts receivables-trade and the corresponding allowance for doubtful accounts, out of which

16

SOFTBANK CORP. CONSOLIDATED FINANCIAL REPORTFor the fiscal year ended March 31, 2009¥16,305 million was written down, were transferred to investments and other assets. As a result, long term claims and thecorresponding allowance for doubtful accounts of ¥31,988 million were included in investments and other assets.

(c) Current Liabilities
Current liabilities increased by ¥108,878 million from the end of the previous fiscal year, to ¥1,349,583 million. Althoughnotes accounts payable–trade decreased by ¥26,939 and income taxes payable decreased by ¥13,716 million, short-termborrowings increased by ¥126,960 million, primarily by the Company under the credit line facility. Lease obligations also
grew by ¥18,470 million.

(d) Long-term Liabilities
Long-term liabilities decreased by ¥257,181 million from the end of the previous fiscal year, to ¥2,212,290 million. Thiswas mainly because of a decrease in long-term borrowings by ¥150,352 million, corporate bonds outstanding by ¥120,645
million, and deferred tax liabilities by ¥13,181 million.

However, ¥75,000 million in long-term payables of other liabilities

associated with the loss additional entrustment for debt assumption was recorded.
At the Mobile Communications segment, the balance of long-term debt procured by SOFTBANK MOBILE through thewhole business securitization financing scheme decreased by ¥91,635 million from the end of the previous fiscal year, to¥1,184,853 million.

(e) Equity
Equity decreased by ¥23,926 million from the end of the previous fiscal year, to ¥824,798 million.

Retained earnings

increased by ¥40,474 million, but the net unrealized gain on other securities decreased by ¥49,580 million because of thedecline in share price of Yahoo Inc. in the U.S., and foreign currency translation adjustments were down ¥37,992 million as
well. The decline in foreign currency translation adjustments was the result of the yen’s continued appreciation since theend of the previous fiscal year, which led to a decline in the value of equity in overseas subsidiaries.
The acquisition of treasury stock by Yahoo Japan Corporation also reduced minority interest in consolidated subsidiaries
by ¥14,447 million.

2. Cash Flows
During this fiscal year, net cash provided by operating activities was ¥447,857 million, net cash used in investing activitieswas ¥266,295 million, and net cash used in financing activities was ¥210,348 million.

As a result, free cash flow (thecombined net cash flows from operating activities and investing activities) for this fiscal year totaled ¥181,562 million.
At the end of this fiscal year, cash and cash equivalents totaled ¥457,644 million, a decrease of ¥32,622 million from theend of the previous fiscal year.

17

SOFTBANK CORP. CONSOLIDATED FINANCIAL REPORTFor the fiscal year ended March 31, 2009

<Trend of Cash Flows>(Millions of yen)
Fiscal year
ended March
31, 2007
Full year

Cash flow fromoperatingactivities
Cash flow frominvestingactivities

Fiscal year ended March 31, 2008

Fiscal year ended March 31, 2009

Q1

Q2

Q3

Q4

Full year

Q1

Q2

Q3

Q4

Full year

311,201(27,478)

27,92256,812

101,001

158,257

52,899124,307

93,561

177,089

447,857(2,097,937)(111,519)(115,766) (46,349)(48,826)(322,461)(90,769)(74,334)(58,016)(43,175)(266,295)(Reference) free
(1,786,735)(138,997) (87,843)

10,462

52,175(164,203)(37,869)

49,97235,545

133,914

181,562

1,718,384

218,480

85,045(2,311)(16,487)284,727(32,254)(49,689)(67,564)(60,840)(210,348)

446,694

377,520457,727452,771

460,278

377,520490,266

419,498

419,186

383,703490,266

377,520457,727452,771

460,278490,266

490,266

419,498

419,186

383,703457,644457,644

cash flow*
Cash flow fromfinancing
activities
Cash and cash
equivalents,
beginning of
periodCash and cash
equivalents, endof period*The combined net cash flows from operating activities and investing activities(a) Cash Flow from Operating Activities: ¥447,857 million net inflow
Income before income taxes and minority interests for this fiscal year totaled ¥107,338 million, while non-cash items
included depreciation and amortization of ¥236,013 million, amortization of goodwill of ¥61,111 million, and impairment
losses of ¥29,478 million. In terms of working capital, receivables–trade turned to a decline, having a ¥1,699 million
positive impact on operating cash flow, while a decline in payables–trade had a negative impact of ¥29,230 million.
Income taxes paid by Yahoo Japan and other entities were ¥60,408 million.

(b) Cash Flow from Investing Activities: ¥266,295 million net outflow
Capital expenditure in the form of purchases of property and equipment and intangibles, mainly at the telecommunications
segments, totaled ¥240,637 million.

Purchases of securities and investment securities totaled ¥33,197 million.

In

addition, SOFTBANK TELECOM’s acquisition of additional shares of SOFTBANK TELECOM PARTNERS Corp.,
making it a consolidated subsidiary of SOFTBANK TELECOM etc., resulted in an outlay of ¥17,530 million for theacquisition of interests in subsidiaries newly consolidated.
As a result, free cash flow for this fiscal year was positive at ¥181,562 million.

(c) Cash Flow from Financing Activities: ¥210,348 million net outflow
Proceeds from long-term debt totaled ¥234,681 million, and short-term borrowings, net increased by ¥116,358 million.
Proceeds of ¥90,208 million were recorded from the sale and lease back of equipment newly acquired, mainly at the Mobile
Communications segment.

In terms of outflows, ¥372,300 million of long-term borrowings were repaid, bond18

SOFTBANK CORP. CONSOLIDATED FINANCIAL REPORTFor the fiscal year ended March 31, 2009

redemptions totaled ¥108,930 million, and ¥81,347 million of lease obligations were repaid. A ¥71,166 million outlay was
also recorded for the purchase of treasury stock of consolidated subsidiaries in consolidation, mainly at Yahoo Japan.
(d) Trends in Cash Flow Related Indicators
A summary of trends in cash flow related indicators is presented below.
Fiscal year ended

Fiscal year ended

Fiscal year ended

March 31, 2007

March 31, 2008

March 31, 2009

Equity ratio

6.6

%

8.4

%

8.5

%

Equity ratio (Market cap.)

74.2

%

42.8

%

30.9

%

Debt repayment period

4.5

years

4.0

years

3.5

years

Interest coverage ratio

6.6

5.4

6.0

Notes:
1. The above indicators are calculated using the following formulas based on consolidated figures.
Equity ratio: Shareholders’ equity divided by total assets
Equity ratio (Market cap.): Market capitalization divided by total assets
Debt repayment period: Interest-bearing debt divided by EBITDA
Interest coverage ratio: EBITDA divided by interest expenses
2. EBITDA = Operating income (loss) + depreciation and amortization (including amortization of goodwill), and loss
on disposal of fixed assets included in operating expenses.
3. Market capitalization is calculated based on the number of shares outstanding, net of treasury stock
4. Interest-bearing debt is the sum of all borrowing, commercial paper, and bonds on the Consolidated Balance Sheets
for the end of the fiscal year.
5. Interest expense is the corresponding figure on the Consolidated Statements of income for the fiscal year.
A summary of cash flow related indicators excluding the Mobile Communications Segment is shown below.

Fiscal year ended

Fiscal year ended

FiscalMarch 31, 2007

March 31, 2008

March 31, 2009

Debt repayment period

4.6 years

3.6 years

3.1 years

Interest coverage ratio

6.8

7.7

10.2

year

ended

(Reference)(a) Summary of main investment activities
The main investment activities in this fiscal year are as follows:
Month ofinvestment

Name of company invested in

InvesteeApr 2009

SOFTBANK TELECOM PARTNERSCorp.

SOFTBANK TELECOM
Corp.

Invested
amount¥17,204*
millionVotingrights100.0％¥10,240
14.1％
million*This is the amount after the cash and cash deposits etc. of ¥8,325 million owned by SOFTBANK TELECOM PARTNERS Corp. has
been deducted from the amount used for acquisition of additional shares ¥25,530 million.
Apr 2009

Oak Pacific Interactive

SOFTBANK CORP.

19

SOFTBANK CORP. CONSOLIDATED FINANCIAL REPORTFor the fiscal year ended March 31, 2009(b) Major Financing Activities
The major financing activities in this fiscal year were as follows:
Item

Company Name

Stock buyback by
subsidiaries in
consolidation

Yahoo Japan
Corporation

Securitization ofreceivables

SOFTBANKMOBILE Corp.

SOFTBANK BB

Increase or
decrease in debt
and others(excluding
securitization ofreceivables)

SOFTBANK CORP.

Details

Summary

Implementation of the stockbuyback by Yahoo Japan
Corporation
Implementation of the stockbuyback by Yahoo Japan
Corporation
Procurement of funds
totaling ¥45,343 million
accompanying securitizationof mobile phone installment
sales receivables (recorded
as borrowings)
Procurement of funds
totaling ¥57,278 million
accompanying securitizationof mobile phone installment
sales receivables (recorded
as borrowings)
Procurement of funds
totaling ¥45,655 million
accompanying securitizationof mobile phone installment
sales receivables (recorded
as borrowings)
Procurement of funds
totaling ¥61,405 million
accompanying securitizationof mobile phone installment
sales receivables (recorded
as borrowings)
Procured a total of ¥20,000
million through thesecuritization of current andfuture ADSL receivables
linked to the provision ofservices (recorded as
borrowings)
Increase ¥102,999 million(net)

Buyback Period:
June 2, 2008 to July 10, 2008
Total amount of buyback: ¥51,639 million
Buyback date:
March 18, 2009
Total amount of buyback: ¥17,536 million*
Procurement date: June 27, 2008
Redemption method:monthly pass-through repayment
Use: capital investment and repayment offunds raised via the whole businesssecuritization financing scheme
Procurement date: September 29, 2008
Redemption method:monthly pass-through repayment
Use: capital investment and repayment offunds raised via the whole businesssecuritization financing scheme
Procurement date: December 29, 2008
Redemption method:monthly pass-through repayment
Use: capital investment and repayment offunds raised via the whole businesssecuritization financing scheme
Procurement date: March 30, 2009
Redemption method:monthly pass-through repayment
Use: capital investment and repayment offunds raised via the whole businesssecuritization financing scheme
Procurement date: March 26, 2009
Redemption method: monthly and quarterly
redemption
Use: repayment of consolidated
interest-bearing debt

SOFTBANK
Decrease ¥91,635 million
Repayment of funds raised via the whole
MOBILE Corp.
business securitization financing scheme
SOFTBANK
Decrease ¥31,000 million
TELECOM Corp.
Yahoo Japan
Decrease ¥20,000 million
Corporation* The amount of group internal sales transaction amounting to ¥12,491 million has been subtracted from the total amount ofshares bought back by Yahoo Japan at ¥30,027 million.

20

SOFTBANK CORP. CONSOLIDATED FINANCIAL REPORTFor the fiscal year ended March 31, 2009

Item
Bond redemption

Company NameSOFTBANK CORP.

Details
20 Unsecured Straight
Bondth

21st Unsecured StraightBond
23rd Unsecured Straight
Bond
Convertible bond due 2015

Implementation ofcapital investment
through financelease agreements

SOFTBANKMOBILE Corp. etc.

Implementation of capital
expenditure mainly formobile communications
utilizing lease agreements

Summary
Date of redemption: June 9, 2008
Aggregate amount of redemption:¥12,500 million
Date of redemption: September 12, 2008
Aggregate amount of redemption:¥20,000 million
Date of redemption: November 28, 2008
Aggregate amount of redemption:¥20,000 million
Date of early redemption: March 21, 2009
Aggregate amount of redemption: ¥50,000
millionFunds procured during this period :¥90,208 million(3) Fundamental Policy for Distribution of Profit, and Dividends for Current and Following Year
The Company strives to increase returns to shareholders by raising corporate value, and has a fundamental policy ofreturning appropriate amounts of profit to shareholders and other stakeholders.
The Company’s policy regarding dividends to shareholders is to balance the strengthening of the operating base by
reducing interest-bearing debt while maintaining a stable dividend over the medium to long term.

The Company iscurrently putting efforts into cash flow operations, focusing on the reduction of interest-bearing debt and therefore intends to
pay a dividend of ¥2.5 per share this year, the same amount as last year. The earnings forecasts for the next fiscal year
anticipate great improvements in free cash flow as the result of cash flow management. In order to return profits to theshareholders the dividend for the next fiscal year is scheduled to be double the amount of this fiscal year at ¥5 per share.

21

SOFTBANK CORP. CONSOLIDATED FINANCIAL REPORTFor the fiscal year ended March 31, 2009

2. The SOFTBANK GroupAs of March 31, 2009, the Group comprised the Company (a pure holding company) and the following nine businesssegments.

The number of consolidated subsidiaries and equity-method companies in each business segment is asfollows.

Consolidated
subsidiaries

Equity-method
non-consolidated
subsidiaries andaffiliates

Mobile Communications

6

2

Broadband Infrastructure

6

3

Fixed-line Telecommunications

3-

Internet Culture

17

18

e-Commerce

7

4

Others(*3)

69

47

108

74

Business segments

Total

Main business of segment and name of business
Provision of mobile communication services and sale of mobile
phones accompanying the services etc.
(Core company: SOFTBANK MOBILE Corp.)
Provision of ADSL and fiber-optic high-speed Internet connection
service, IP telephony service, and provision of content etc. (Corecompany: SOFTBANK BB Corp.(*1))
Provision of fixed-line telecommunication services etc.
(Core companies: SOFTBANK TELECOM Corp.
Internet-based advertising operations, portal business andauction business etc.
(Core company: Yahoo Japan Corporation (*1,2))
Distribution of PC software and hardware including PCs andperipherals and enterprise solutions, and diversified
e-commerce businesses, including business transaction
platforms (B2B) and consumer-related e-commerce (B2C)
etc.
(Core companies: SOFTBANK BB Corp. (*1) 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 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 and theiroperating results are allocated to multiple business segments.
*2. SOFTBANK IDC Solutions Corp. (its company name changed from SOFTBANK IDC Corp. on February 2, 2009) which waspreviously included in the Fixed-line Telecommunications segment merged with Yahoo Japan Corporation on February 2, 2009. As
a result of this merger the datacenter business that was taken over from SOFTBANK IDC Corp. by Yahoo Japan is included in theInternet Culture segment from this fiscal year.
*3. Broadmedia Corporation, which belonged to the Broadmedia segment that was previously included in Others above, changed
from a consolidated subsidiary to an equity-method affiliate as the result of a capital increase via third-party allotment of shares
implemented on May 16, 2008. The Broadmedia segment was therefore disbanded in the first quarter of this fiscal year.

22

SOFTBANK CORP. CONSOLIDATED FINANCIAL REPORTFor the fiscal year ended March 31, 2009

[Segment Diagram]
The diagram of the Group’s segments is as follows:
Customers
Provision of mobile
communication services, mobile
phones, etc.

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

Mobile Communications

Internet advertising, portal
business, internet auction
business, etc.

Provisionof
fixed-line
telecommunications services etc.

Internet Culture

Fixed-line
SOFTBANK CORP.
(Pure holding company)

Overseas Funds
Investments in Internet-related companies, etc.

e-Commerce
Distribution of PC software& peripherals, e-commercebusiness, etc.
Technology Services

Media & Marketing

Publication business, web content business, etc.

System solution business,
etc
OthersFukuoka SoftBank Hawks
related business etc.

Customers
Technology Services, Media & Marketing, Overseas Funds, and other segments
are included in the “Others” segment.

［Listed Companies］
The following SOFTBANK subsidiaries are listed on domestic stock exchanges as of March 31, 2009:
Company NameYahoo Japan Corporation
SOFTBANK TECHNOLOGY CORP.

Listed ExchangeTokyo Stock Exchange 1st section
Jasdaq Securities Exchange

ITmedia Inc.(Note3)

Tokyo Stock Exchange 1st section
Osaka
Securities
Exchange
HerculesTokyo Stock Exchange Mothers

Carview Corporation (Note3)

Tokyo Stock Exchange Mothers

Vector Inc.

23

SOFTBANK CORP. CONSOLIDATED FINANCIAL REPORTFor the fiscal year ended March 31, 2009

3. Management Policies(1) Fundamental Management Policies
Since its establishment, the SOFTBANK Group has followed the fundamental management policy of ‘Endeavoring tobenefit society and the economy and to maximize corporate value by fostering the sharing of wisdom and knowledge gained
through the IT revolution.’ The Group is working to facilitate the realization of a ‘true ubiquitous society,’ where
broadband will enable anyone to access all kinds of information at any time and anywhere.
As a corporate group based on Internet-related businesses, the Group will not limit itself to its existing role of a telecom
operator.

Rather, by providing both information infrastructure and content as a ‘comprehensive digital informationcompany,’ the Group aims to make people’s lifestyles and business styles more affluent and enjoyable, and to be the global
No. 1 corporate group in the broadband era.

(2) Target Management Indices
The Group places great importance on results and rates of change in the principal management indices—net sales, operating
income, ordinary income, net income, cash flow and EBITDA*1—for each of our internal management segments.

The

Group also attaches great importance to indices that track user trends, particularly in the telecommunications businesses,
such as the number of subscribers, market share, churn rate, and ARPU. In addition, the Group began releasing earnings
forecasts (commitments) for consolidated operating income and cash flows (cash flows from operating activities, cash flows
from investing activities, and free cash flow ) with the announcement of earnings results for the second quarter of the fiscal
year ended March 31, 2009 (released on October 29, 2008).

Going forward, the Group will work to further strengthen its

financial position by managing cash flows, maximizing free cash flow, and reducing interest-bearing debt.
*1 EBITDA: Operating income/loss + depreciation and loss from disposal of fixed assets (which are included in operating expenses.)(3) Medium-and-Long-Term Strategies
As a ‘comprehensive digital information company’ in the ubiquitous age, the Group aims to integrate fixed-line and mobile
telecommunications broadband services and to seamlessly develop a range of broadband content over that infrastructure.
In this way, the Group will work to maximize Group revenue and corporate value through the establishment of unique‘business models for the broadband era’ that will generate long-term, stable income from its infrastructure businesses,
increased returns from its portal businesses, and diversified sources of profit from its content businesses.
In addition, the Group operates its businesses with the aim of being the ‘No. 1 Internet Company in Asia’ and the ‘No. 1
Mobile Internet Company.’ In China, the world’s largest market, we have invested in Oak Pacific Interactive, which
operates one of China’s largest SNS ‘Xiaonei,’ in addition to the Alibaba Group, our strategic partner in China, in order toenhance efforts in the area of Internet services in China going forward. In the mobile Internet field, the Group has
established the ‘Joint Innovation Lab (JIL B.V.)’ joint venture with China Mobile Limited, the world’s largest mobile
operator in terms of the number of subscribers, and Vodafone Group Plc, the world’s No. 2 mobile operator.

JIL began by

2offering a Mobile Widget* platform, and through innovation and synergies in the mobile communications industry, and isproviding new services to users around the world.

Verizon Wireless, the operator with one of the largest subscriber basesin the U.S., also participates in JIL, and the four companies involved in this project represent a customer base of
approximately one billion customers.
*2 Mobile Widget: An application on the mobile handset screen that allows for one-touch access to desired information.

24

SOFTBANK CORP. CONSOLIDATED FINANCIAL REPORTFor the fiscal year ended March 31, 2009(4) Important Management Issues for the Company
1. Initiatives to reduce interest-bearing debt
The Group’s interest-bearing debt as of March 31, 2009, stood at ¥2,400,391 million. The majority of this amountrepresents borrowings for the acquisition of the mobile communications business, and the remainder totals ¥1,184,853
million.

Repayments are being made ahead of schedule, with total repayments of ¥181,146 million made during the fiscal

year ended March 31, 2009.
The Group generated consolidated free cash flow of ¥181,562 million during the year, and has made a commitment togenerate ¥250,000 million in the fiscal year ending March 31, 2010.

Free cash flow is used to repay interest-bearing debt,

thereby strengthening the Group’s financial position.
2. Initiatives in the Mobile Communications segment
Immediately following its full-fledged entry into the mobile communications market, the Group identified four key
initiatives – ‘3G network enhancement,’ ‘3G handset lineup enrichment,’ ‘mobile content enhancement,’ and ‘enhancementof sales structure & branding’—and has worked to expand the customer base and further establish the ‘SoftBank’ brand.
The Group will continue to work on the implementation of these initiatives as a means of contributing to its overall growth.
The Group has made ‘Mobile Internet Content’ its area of focus for 2009, and will provide attractive content to allow
customers to have a more enjoyable, ongoing mobile Internet experience. As a first step in this area, the comedy video
contest S-1 BATTLE was launched on March 1, 2009.
3. Initiatives in the Broadband Infrastructure segment
The Group’s comprehensive broadband service, Yahoo! BB has the largest share of the market for ADSL services, but thebroadband market is experiencing a shift to higher speed FTTH*3 services that use optical fiber.

The Group is therefore

striving to retain ADSL customers by expanding the service lineup and continuing to provide services that meet customer
needs.

These services include the FMC service White Call 24, which offers free domestic calls 24-hours a day between

SoftBank mobile phones and the IP telephone service offered by SOFTBANK BB, and the new Yahoo! BB White Plan,
which can be used for as little as ¥655/month*4 with a two ceilings plan and SOFTBANK Keitai Set Discount.
The Group is also working to expand its lineup of FTTH services, and in February 2009 SOFTBANK BB launched theYahoo!BB hikari with FLET’S as one step in this process. We are working aggressively to attract customers who prefer
FTTH services.
*3 Fiber To The Home: A data telecommunications service for homes using an optical fiber connection.
*4 When used with SoftBank 3G in the eastern Japan area.

4. Initiatives in the Fixed-line Telecommunications segment
The consumer market for fixed-line telecommunications operations continues to shrink because of the penetration of mobile
phones and IP phone services, but demand remains firm in the corporate market.

Given this environment, SOFTBANKTELECOM Corp. continues to directly market fixed-line services to corporations, with an emphasis on the OTOKU Line, a
direct connection fixed-line voice service. SOFTBANK TELECOM also began accepting applications for White Office, a
corporate FMC service that uses SOFTBANK MOBILE’s mobile phone services to use mobile phones as extension lines
for fixed-line phones, from March 2, 2009. Other FMC services already introduced to aggressively acquire subscriber

25

SOFTBANK CORP. CONSOLIDATED FINANCIAL REPORTFor the fiscal year ended March 31, 2009lines include White Plan Corporate Discount 24 and White Line 24, as the business works to increase profit by continuing toemphasize corporate data services.
5. Pursuing synergies among Group companies
As a corporate group, based on Internet-related businesses, the Group will not limit itself to its existing role as acomprehensive communications carrier. Rather, the Group will further enhance its appealing broadband content, such as
through the Yahoo! Streaming video portal site.

As a comprehensive digital information company in the broadband era,

the Group will work to develop innovative services in infrastructure, portals, and content and strive to clearly differentiate
itself from competitors.
The Group has been pursuing synergies in the telecommunications businesses— the three telecommunications companiesof the SOFTBANK Group, namely, SOFTBANK MOBILE, SOFTBANK BB and SOFTBANK TELECOM—in a variety
of ways. These initiatives include cost reductions through the integration of backbone networks, the expansion of thecustomer base and sales channels and the offering of FMC services.
The Group considers the further pursuit of Group synergies to be an important issue, and as a step in this direction theservice brand logos of the three telecommunications companies were unified on April 1, 2009. By working even moreclosely together, these three companies will utilize synergies to provide customers with innovative services by creating afull-fledged mobile Internet environment and continuing to pursue FMC.
management efficiency.

26

This is also contributing to increased

SOFTBANK CORP. CONSOLIDATED FINANCIAL REPORTFor the fiscal year ended March 31, 2009

4. Consolidated Financial Statements(1) Consolidated Balance Sheets(Millions of yen)
As ofMarch 31, 2008

As ofMarch 31, 2009

AmountAmountASSETS
Current assets:
Cash and deposits
Notes and accounts receivable - tradeMarketable securities¥491,161¥457,953

887,723

858,084

4,928

2,917

Merchandise

58,11842,320

Deferred tax assets

105,850

93,021Other current assets
Less:
Allowance for doubtful accounts
Total current assets

103,351

114,874(68,388)(48,858)

1,582,744

1,520,313

Buildings and structures

75,781

71,577

Telecommunications equipment

744,037

738,967

Telecommunications service lines

86,062

79,637

Land

23,442

22,576

Construction in progress

45,57637,477

Other54,36450,7101,029,265

1,000,946

Goodwill

974,435

956,730

Software224,180

226,131

Other intangibles

39,69339,2451,238,309

1,222,108

464,997

320,102126,887

158,228

118,491

200,749(4,613)705,763
2,973,337(37,100)
641,980
2,865,036

2,818

1,322

¥4,558,901¥4,386,672

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

27

SOFTBANK CORP. CONSOLIDATED FINANCIAL REPORTFor the fiscal year ended March 31, 2009

Consolidated Balance Sheets(Millions of yen)
As ofMarch 31, 2008

As ofMarch 31, 2009

AmountAmountLIABILITIES AND EQUITYCurrent liabilities:
Accounts payable - trade
Short-term borrowings¥187,279¥160,339

448,571575,532

52,54064,000364,450

352,171

Income taxes payable

35,07921,363Current portion of lease obligations

69,77088,241Other current liabilities

83,012

87,935

Total current liabilities

1,240,704

1,349,583

Corporate bonds

445,211

324,566

Long-term debt

1,586,645

1,436,292

Deferred tax liabilities

41,977

28,795

Liability for retirement benefits

16,15816,076

Allowance for point mileage

43,80941,816

Lease obligations

241,496

233,314

Other liabilities

94,172

131,428

Total long-term liabilities

2,469,472

2,212,290

Total liabilities

3,710,176

3,561,873

Common stock

187,422

187,681

Additional paid-in capital

211,740

211,999

Accumulated deficit(91,744)(51,269)

Less: Treasury stock

(206)

(214)

Total shareholders’ equity

307,213348,197

Unrealized gain on available-for-sale securities

80,914

31,334

Deferred (loss) gain on derivatives under hedge
accounting(11,823)

25,117

Foreign currency translation adjustments

7,437(30,554)

Total valuation and translation adjustments

76,52925,897120

289

Minority interests

464,862

450,414

Total equity

848,725

824,798¥4,558,901¥4,386,672

Current portion of corporate bonds
Accounts payable - otherand accrued expenses

Long-term liabilities:

Equity:Stock acquisition rights

Total liabilities and equity

28

SOFTBANK CORP. CONSOLIDATED FINANCIAL REPORTFor the fiscal year ended March 31, 2009

(2) Consolidated Statements of Income(Millions of yen)

Fiscal year ended
March 31, 2008

Fiscal year ended
March 31, 2009

AmountNet sales
Cost of sales
Gross Profit

Amount¥2,776,168¥2,673,035

1,467,363

1,365,903

1,308,805

1,307,132

984,517

948,011324,287

359,121

Interest income
Foreign exchange gain, net

3,137

1,399

4,981

1,884

Equity in earnings of affiliated companies

55,411-

Contribution for construction

699

3,423

Other non-operating income
Non-operating income

5,158

6,309

69,38713,016

114,863

112,345-

13,75920,197

20,370135,060

146,475

Selling, general and administrative expenses
Operating income

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

258,614225,661

Gain on sale of investment securities

6,432

3,454

Dilution gain from changes in equity interest
Unrealized appreciation on investments and gain on saleof investments at subsidiaries in the U.S. , net
Gain on liquidation of a subsidiary

3,765

2,483

12,967

-

-

2,972

Other special income

6,619

2,301

29,785

11,212

21,855

11,504-

5,316

10,64429,478-75,00030,011

8,236

62,511

129,535

225,887

107,338

Current

48,64939,390

Deferred

29,533(19,674)

Total income taxes

78,183

19,715

Minority interests in net income

39,07944,450¥108,624¥43,172

Special income
Valuation loss on investment securities
Unrealized loss on valuation of investments and loss onsale of investments at subsidiaries in the U.S., net
Impairment loss
Loss on additional entrustment for debt assumption
Other special losses
Special loss
Income before income taxes and minority interests
Income taxes:

Net income29

(3)Consolidated Statements of Changes in Equity
Fiscal year from April 1, 2007 to March 31, 2008:(Millions of yen)
Shareholders’ equity

Valuation and translation adjustments
Unrealized gain Deferred gain
Foreign currency(loss) on(loss) on
translation
available-for- derivatives underadjustments
hedgesale securities
accounting

Total equity¥124,434¥3,180¥430,106¥716,237

-

-

-

-

(5,150)

-

-

-

-

-

48,183

-

-

-

-

-

-

(2,639)

(307)

-

-

-

-

-

-

(307)

-

108,624

-

-

-

-

-

-

108,624

-

(12)

(12)

-

-

-

-

-

-

(12)

-

-

-

(41,704)

15,172(21,372)(47,904)(3,060)34,755(16,209)(41,704)

15,172(21,372)(47,904)(3,060)34,755

132,487¥80,914¥ (11,823)¥7,437¥76,529¥120¥464,862¥848,725

Accumulated
deficit

Treasurystock¥163,309¥1¥187,669¥(192,271)¥(193)¥158,515¥122,619¥(26,995)¥28,810---(5,150)-(5,150)--24,113(1)

24,071--

48,183-

Cash dividends

-

-

-

(2,639)-(2,639)Adjustments of accumulated deficit due tochange in scope of the consolidation

-

-

-

(307)

-

Net income

-

-

-

108,624

Purchase of treasury stock

-

-

-

Items other than changes in shareholders’equity, net

-

-

-

Total changes in the year

24,113(1)

24,071

100,527(12)

148,697

Balance at March 31, 2008

¥187,422¥-¥211,740¥(91,744)¥(206)¥307,213

Changes of items during the year
Increase in accumulated deficit due to adoptionof new accounting standards at a subsidiaryin the U.S.
Exercise of warrants

Total

Total

SOFTBANK CORP. CONSOLIDATED FINANCIAL REPORTFor the fiscal year ended March 31, 2009

Minority
interests

Additional
paid-in
capitalBalance at April 1, 2007

30

Stock
acquisitionrightsCommon Cash receipts for
new stockstock
subscriptions

Fiscal year from April 1, 2008 to March 31, 2009:(Millions of yen)
Shareholders’ equity

Valuation and translation adjustments
Stock acquisitionrightsMinority
interests

Total equity¥76,529¥120¥464,862¥848,725

-

-

-

-

(3)

-

-

-

-

-

517

-

-

-

-

-

-

(2,701)

7

-

-

-

-

-

-

7

-

43,172

-

-

-

-

-

-

43,172

-

(8)

(8)

-

-

-

-

-

-

(8)

-

-

-

-

(49,580)

36,940(37,992)(50,632)169(14,447)(64,910)258

258

40,478(8)40,987(49,580)

36,940(37,992)(50,632)169(14,447)(23,923)¥187,681¥211,999¥(51,269)¥(214)¥348,197¥31,334¥ 25,117¥(30,554)¥25,897¥289¥450,414¥824,798

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

Commonstock

Additional
paid-in
capital¥187,422¥211,740¥(91,744)¥(206)¥307,213¥80,914¥ (11,823)¥7,437

-

-

(3)

-

(3)

-

-

258

258

-

-

517

-

Cash dividends--(2,701)-(2,701)

Adjustments of accumulated deficit due tochange in scope of the consolidation

-

-

7

-

Net income--

43,172

Purchase of treasury stock--

Items other than changes in shareholders’equity, net-

Balance at April 1, 2008
Increase in accumulated deficit due to adoptionof a new accounting standard for accounting
policies at foreign subsidiaries

Accumulated
Treasury stock
deficit

Total

Total

Changes of items during the year
Exercise of warrants

31

Total changes in the year

SOFTBANK CORP. CONSOLIDATED FINANCIAL REPORTFor the fiscal year ended March 31, 2009

Balance at March 31, 2009

SOFTBANK CORP. CONSOLIDATED FINANCIAL REPORTFor the fiscal year ended March 31, 2009

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

Fiscal year ended
March 31, 2008

Fiscal year ended
March 31, 2009

¥225,887¥107,338

Depreciation and amortization

220,254

236,013

Amortization of goodwill

59,05061,111Equity in (earnings) losses of affiliated companies(55,411)13,759Dilution gain from changes in equity interest, net(1,570)(2,410)

Impairment loss

10,64429,478Valuation loss on investment securities

21,855

11,504(12,967)

5,316

Foreign exchange gain , net(7,569)(4,431)(3,037)(1,494)

Interest and dividend income(3,754)(2,396)

Interest expense

114,863

112,345(309,196)

1,699(7,508)(29,230)

60,91765,426

311,066

605,425

3,473

2,603

Interest paid

(103,467)(99,761)

Income taxes paid

(52,815)(60,408)

158,257

447,857

Cash flows from operating activities:
Income before income taxes and minority interests
Adjustments for:

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

Changes in operating assets, and liabilities(Increase) decrease in receivables – trade
Decrease in payables - trade
Other, net
Sub-totalInterest and dividends received

Net cash provided by operating activities- Continued -32

SOFTBANK CORP. CONSOLIDATED FINANCIAL REPORTFor the fiscal year ended March 31, 2009

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

Fiscal year ended
March 31, 2008

Fiscal year ended
March 31, 2009

¥ (345,677)¥ (240,637)(45,576)(33,197)

44,17518,858

1,207(17,530)

(257)
1,012
22,655

6,212(322,461)(266,295)(Decrease) increase in short-term borrowings, net(69,530)

116,358

Decrease in commercial paper, net(5,000)-

Proceeds from long-term debt

280,716

234,681

Repayment of long-term debt

(234,874)(372,300)

Proceeds from issuance of bonds

89,462-

Redemption of bonds(58,038)(108,930)

Exercise of warrants
Proceeds from issuance of shares to minority shareholders

44,846

517

9,127

1,137

Cash dividends paid

(2,640)(2,680)Cash dividends paid to minority shareholders(3,549)(4,121)

Purchase of treasury stock of subsidiaries in consolidation
Proceeds from sale and lease back of equipment newly acquired(408)(71,166)

297,922

90,208

Repayment of lease obligations(49,901)(81,347)

Other, net(13,403)(12,705)

Net cash provided (used in ) by financing activities

284,727(210,348)(7,006)(2,383)

113,516(31,169)-

357

Cash flows from investing activities:
Purchase of property and equipment, and intangibles
Purchase of marketable and investment securities
Proceeds from sale of marketable and investment securities
Acquisition of interests in subsidiaries newly consolidated, net of cash
acquiredSale of interests in subsidiaries previously consolidated, net
Proceeds from sales of interests in consolidated subsidiaries
Other, net
Net cash used in investing activities
Cash flows from financing activities:

Effect of exchange rate changes
on cash and cash equivalents
Net increase (decrease) 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 of previously
consolidated subsidiaries
Cash and cash equivalents, beginning of the year(771)

(1,810)377,520490,266

Cash and cash equivalents, end of the year

¥490,266¥457,644

33

SOFTBANK CORP. CONSOLIDATED FINANCIAL REPORTFor the fiscal year ended March 31, 2009(5)Significant doubt about going concern assumption
Not applicable(6) Basis of Presentation of Consolidated Financial Statements
1. Changes in scope of consolidation
As of March 31, 2009, SOFTBANK CORP. (the “Company”) consolidated 108 subsidiaries (together, the “Group”). 65
subsidiaries were not consolidated as the individual and aggregate amounts were not considered material in relation to theconsolidated total assets, net sales, net income and retained earnings (accumulated deficit) of the SOFTBANK Consolidated
Financial Statements.
Changes in scope of consolidation are as follows:<Increase>
11 companies
Significant changes:
SOFTBANK TELECOM PARTNERS Corp. Additionally acquired<Decrease>
12 companies
Significant changes:
Broadmedia Corporation
Decreased in interest due to allocation of new stock to a third party
2. Changes in scope of equity method
As of March 31, 2009, the Company held 4 non-consolidated subsidiaries and 70 affiliates, all of which were accounted forunder the equity method. 61 non-consolidated subsidiaries and 20 affiliates were not accounted for under the equity method,as the individual and aggregate amounts were not considered material in relation to the net income and retained earnings(accumulated deficit) of the SOFTBANK Consolidated Financial Statements.
Changes in scope of equity method are as follows:<Increase>
16 companies
Significant changes:
Broadmedia Corporation
Changed from a consolidated subsidiary<Decrease>
9 companies
3. Fiscal year end
Fiscal year ends of consolidated subsidiaries for both domestic and overseas entities are as follows:<Fiscal year end>
March end
(same as the consolidated balance sheet date)June end
July end
December end
January end
February end
4. Summary of significant accounting policies(1) Evaluation standards and methods for major assets[1] Marketable securities and investment securities
Held-to-maturity debt securities: Stated at amortized cost
Available-for-sale securities:

34<Domestic><Overseas>

50
1
2
2

32
2
17
2
-

SOFTBANK CORP. CONSOLIDATED FINANCIAL REPORTFor the fiscal year ended March 31, 2009

With market quotations:Without market quotations:

Stated at fair value, which represents the market prices at the balance sheet date(unrealized gain/loss is included as a separate component in equity, net of tax, while
cost is primarily determined using the moving-average method)
Carried at cost, primarily based on the moving-average method

Certain subsidiaries of the Company in the United States of America qualify as investment companies under theprovisions 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 investment
securities are carried at fair value, and net changes in fair value are recorded in the consolidated statements of income
under the application of the AICPA Guide.
[2] Derivative instruments:

Stated at fair value[3] Inventories (merchandise):

Carried at cost, primarily net selling value determined by the moving-average method(2) Depreciation and amortization[1] Property and equipment:
Buildings and structures:
Telecommunications equipment:
Telecommunications service lines:
Others:Computed primarily using the straight-line method
Computed using the straight-line method
Computed using the straight-line method
Computed primarily using the straight-line method[2] Intangible assets:

Computed using the straight-line method

Finance leases in which the ownership of leased assets is not transferred to lessees at the end of lease periods are computed
using the straight-line method over the period of the finance leases. Finance lease transactions in which the ownership ofleased assets was not transferred to lessees and contracted before April 1, 2008 are accounted for as operating leasetransactions and “as if capitalized” information is disclosed in the notes to the Company’s consolidated financial statements.
(3) Accounting principles for major allowances and accruals<Allowance for doubtful accounts>
Allowance for doubtful accounts is calculated based on the aggregate amount of estimated credit losses on doubtfulreceivables, plus an amount for receivables other than doubtful receivables calculated using historical write-off
experience ratios from certain prior periods.
<Accrued retirement benefits>
SOFTBANK MOBILE, SOFTBANK TELECOM, and certain other subsidiaries have defined benefit pension plans
for their employees. These companies account for the obligation for retirement benefits based on the projected benefit
obligations at the end of the fiscal year end.
SOFTBANK MOBILE and SOFTBANK TELECOM amended the pension plans by suspending the defined benefit
pension plans at the end of March 2007 and March 2006, respectively, and implementing defined contribution pension
plans. The retirement benefits existed and calculated under the benefit pension plan were fixed and will be paid at theretirement of applicable employees, and the projected benefit obligations are calculated based on these fixed retirement
benefits. As a result, service cost under the defined benefit pension plans at SOFTBANK MOBILE and SOFTBANKTELECOM did not occur for the fiscal year ended March 31, 2009.
<Allowance for point mileage >SOFTBANK MOBILE has an allowance for point mileage which is accrued based on the estimated future obligation
arising from point service, based on past experience.

35

SOFTBANK CORP. CONSOLIDATED FINANCIAL REPORTFor the fiscal year ended March 31, 2009(4) Translation of foreign currency transactions and accounts
All assets and liabilities in foreign currencies are translated at the foreign currency exchange rates prevailing at the respectivebalance sheet dates. Foreign currency exchange gains or losses are charged to net income when incurred.
The translation of foreign currency denominated revenues and expenses in the financial statements of foreign consolidated
subsidiaries into Japanese yen is performed by using the average exchange rate for the period. Assets and liabilities aretranslated using the foreign currency exchange rates prevailing at the balance sheet dates, and capital stock is translated using
the historical foreign currency exchange rates. Foreign currency financial statement translation differences are presented asa separate component of “Equity,” and the portion pertaining to minority shareholders, which is included in “Minority
interests.”(5) Accounting for significant hedge transactions[1]Collar transaction① <Hedge accounting>Unrealized gains and losses, net of tax, on a collar transaction that qualifies as an effective cash flow hedge at
consolidated subsidiaries in the United States of America are reported as a separate component of “Equity” in the
Company’s consolidated balance sheets. As such, unrealized gains and losses associated with the collar transaction will
be recognized into earnings in the same period during which the hedged assets and liabilities are recognized in earnings.
② <Derivative instruments for hedging and hedged items>
Derivative instruments for hedging:
Prepaid variable share forward contract (the collar transaction)
Hedged items:
Equity security③ <Hedging policy>
The purpose of the collar transaction is to hedge the variability of cash flows associated with the future market price of
the underlying equity security, which is used for the settlement of loans at maturity.
④ <Effectiveness of hedge transactions>
The effectiveness of hedge transaction is assessed by measuring high correlation between the variability of cash flows
associated with the market price of hedged items and variability of cash flows of hedge instruments.
[2] Interest rate swap
① <Hedge accounting>
Recognitions of gains or losses resulting from changes in fair value of derivative instruments for hedging are deferred until
the related gains and losses on hedged items are recognized. For interest rate swaps whose amounts, index and periods aresame as the conditions for hedged items, the “exceptional method” is adopted. Under this method, a certain domestic
consolidated subsidiary does not account for gains and losses of those interest rate swaps on a fair value basis andrecognizes swap interest on an accrual basis.
② <Derivative instruments for hedging and hedged items>
Derivative instruments for hedging:Interest rate swap contracts
Hedged items:
Interest expense on borrowings③ <Hedging policy>
In accordance with the Company’s policy, the domestic consolidated subsidiaries use derivative financial instruments tohedge the risk of exposures to fluctuations in interest rates in accordance with its internal policies, regarding theauthorization and credit limit amount.
④ < Effectiveness of hedge transactions >The effectiveness of hedge transaction is assessed by measuring high correlation between the variability of cash flows
associated with the interest rate of hedged items and variability of cash flows of hedge instruments. For the circumstancethat “exceptional method” is adopted, the valuations of effectiveness are omitted.
[3] Forward-exchange contract① <Hedge accounting>36

SOFTBANK CORP. CONSOLIDATED FINANCIAL REPORTFor the fiscal year ended March 31, 2009

Long-term debt denominated in foreign currencies for which foreign exchange forward contracts are used to hedge theforeign currency fluctuation are translated at the contracted rate, if the forward contracts qualify for hedge accounting.
② <Derivative instruments for hedging and hedged items>
Derivative instruments for hedging:
Forward-exchange contract
Hedged items:
Foreign currency-denominated bond
③ <Hedging policy>
In accordance with the Company’s policy, the Company uses derivatives to hedge foreign exchange risk associated withcertain assets and liabilities denominated in foreign currencies.
④ < Effectiveness of hedge transactions >Effectiveness of the hedge transaction is omitted due to qualifying for hedge accounting.
(6) Other[1] Accounting method for consumption taxes
Consumption taxes are accounted for using the net method of reporting.
[2] Application of consolidated taxation system
BB Mobile Corp., SOFTBANK MOBILE, and its 4 subsidiaries, all of which are subsidiaries of the Company, adopted
the consolidated taxation system.
5. Accounting for business combinations
All assets and liabilities of acquired entities are revalued at the respective fair market value at the combination date.
6. Amortization of goodwill“Goodwill” is amortized on a straight-line basis over reasonably estimated periods in which economic benefits are expected tobe realized. Immaterial goodwill is expensed as incurred.
The goodwill resulted from acquisition of Vodafone K.K. (currently SOFTBANK MOBILE) is amortized over a
20-year-period.
7. Scope of cash and cash equivalents in the consolidated statements of cash flows“Cash and cash equivalents” are comprised of cash on hand, bank deposits withdrawable on demand and highly liquid
investments with initial maturities of three months or less and a low risk of fluctuation in value.

37

SOFTBANK CORP. CONSOLIDATED FINANCIAL REPORTFor the fiscal year ended March 31, 2009

(7) Changes in accounting policies
1. Application of accounting standard for measurement of inventories
Prior to April 1, 2008, inventories held for sale in the ordinary course of business were measured by primarily cost
determined by the moving-average method. “Accounting Standard for Measurement of Inventories”(ASBJ Statement
No.9 issued on July 5, 2006), which is effective for fiscal years beginning on or after April 1, 2008, was adopted for theyear ended March 31, 2009. Due to the application of the accounting standard, inventories are measured by primarily
net selling value determined by the moving-average method. The effect of this change is not material.
2. 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 year ended March 31, 2009 and thenecessary adjustments are reflected in the consolidated financial statements. The effect of this change is not material.
3. 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 adopted fromthe 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.

38

SOFTBANK CORP. CONSOLIDATED FINANCIAL REPORTFor the fiscal year ended March 31, 2009(8) Notes(Consolidated Balance Sheets)
1. Accumulated depreciation of property and equipment
As of March 31, 2008
837,286

As of March 31, 2009

million yen

966,322

million yen

2. Investments in non-consolidated subsidiaries and affiliates
As of March 31, 2008
Investment securities and investments in partnerships

167,111

As of March 31, 2009

million yen

133,791

million yen

3. Obligation of additional entrustment for debt assumption of bonds (As of March 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 has collateralized debt obligations (CDO) issued by a Cayman Islands based Special-Purpose Company (SPC). The
SPC has contracted a credit default swap agreement secured by debt securities (corporate bond), which refers to a certain
portion of the portfolio consisting of 160 referenced entities.
In case that defaults (credit events under the agreement) of 8 and above of referenced entities occur, the CDO of ¥75,000
million in total is redeemed.
As of March 31, 2009, SOFTBANK MOBILE received notices of the default of 6 referenced entities from Goldman Sachs
International, the arranger of the CDO. On April 10, 2009, SOFTBANK MOBILE received a notice of the default of two
referenced entities. As a result, for the amount required as an additional entrustment of ¥75,000 million, long term accounts
payable was recognized and included in “Other liabilities” of long-term liabilities in the consolidated balance sheet. In the
consolidated statement of income, it was recorded as “Loss on additional entrustment for debt assumption” in special loss.

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, 2008
Subject Bonds

Issue date

Maturity date

Third Series Unsecured Bond

August 19, 1998

August 19, 2010

25,000Fifth Series Unsecured Bond

August 25, 2000

August 25, 2010

25,000Seventh Series Unsecured Bond

September 22, 2000

September 22, 2010

25,000

Total

Amount of transferred bond

75,000 million yen

39

SOFTBANK CORP. CONSOLIDATED FINANCIAL REPORTFor the fiscal year ended March 31, 2009

4. Secured loans(1) Assets pledged as collateral for secured liabilities[1] For future lease liabilities
As of March 31, 2008

As of March 31, 2009

Assets pledged as collateral:
Notes and accounts receivable - trade

10,181

million yen

76

million yen

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

13,787 million yen

78 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 year are as follows:

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

As of March 31, 2008

As of March 31, 2009

8,121

2,519

million yen

million yen[2] For short-term borrowings and long-term debt
Assets pledged as collateral and secured liabilities by consolidated subsidiaries are as follows:
As of March 31, 2008

As of March 31, 2009

Assets pledged as collateral:
Cash and deposits

220,801

212,414

Notes and accounts receivable - trade330,157

312,831

10-

Buildings and structures

13,872

12,774

Telecommunications equipment

268,494

260,509

Telecommunications service lines

170

189

15,576

10,617

152,638

66,863

Other current assets

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

240

Total

1,001,961

31,999million yen

As of March 31, 2008

908,201

million yen

As of March 31, 2009

Secured liabilities:
Accounts payable - trade

1,447

Short-term borrowings
Long - term debt
Total

1,239

4,724

2,903

1,378,900

1,287,099

1,385,072

million yen

1,291,242

million yen

SOFTBANK MOBILE shares owned by BB Mobile Corp. and BB Mobile Corp. shares owned by Mobiletech Corporation
are pledged as collateral for long-term debt (totaled to ¥1,276,488 million and ¥1,184,853 million, as of March 31, 2008 andMarch 31, 2009, respectively) resulting from the acquisition of SOFTBANK MOBILE, in addition to the assets pledged ascollateral 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 were included in“Short-term borrowings” in the amount of ¥165,872 million and ¥185,669 million, as of March 31, 2008 and March

40

SOFTBANK CORP. CONSOLIDATED FINANCIAL REPORTFor the fiscal year ended March 31, 200931 2009, respectively, and “Long-term debt” in the amount of ¥53,146 million and ¥36,256 million, as of March 31,
2008 and March 31, 2009, respectively. The amounts of the senior portion of the securitized installment salesreceivables of ¥ 219,018 million as of March 31, 2008 and ¥221,925 million as of March 31, 2009, were included in“Notes and account receivable-trade”, along with the subordinated portion held by the SOFTBANK MOBILE The
trustee raised the funds through asset backed loans based on the receivables.
[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 at the fiscal year ended March 31, 2009) from a financial institution. Cash proceeds through theasset backed loans are included in the “Short-term borrowings” and “Long-term debt” in the amount of ¥6,660 millionand ¥13,340 million, respectively, as of March 31, 2009.
* 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 March 31, 2008
Short-term borrowings

130,000 million yen

As of March 31, 2009
110,000 million yen

5. Deferred revenue
SOFTBANK BB sold its ADSL modem rental business to BB Modem Rental Yugen Kaisha for the fiscal years ended March
31, 2006 and March 31, 2008. The gain on sale of the business was deferred and is being amortized based on the estimatedeconomic useful life of modem equipment as a revenue source of the modem rental operations (five years). For the fiscal
years ended March 31, 2008 and March 31, 2009, the Company recorded operating income of ¥4,648 million, and ¥5,659
million, respectively, as a result of amortization.
Based on the service agreement with BB Modem Rental Yugen Kaisha, SOFTBANK BB received royalties relating to future
revenue from the modem rental business and recorded it as deferred revenue. The deferred revenue will be reversed inconjunction with the recognition of revenue in proportion to the actual business performance of the ADSL business, such as thenumber of paying customers. Royalties totaling ¥9,497 million and ¥8,809 million for the fiscal years ended March 31, 2008
and March 31, 2009, respectively were recorded as revenue. Ending balances of deferred revenue as of March 31, 2008 andMarch 31, 2009 were as follows:
As of March 31, 2008

As of March 31, 2009

Other current liabilities (deferred revenue)

14,804 million yen

12,044 million yen

Other liabilities (long-term deferred revenue)

15,922

3,773

In accordance with the service agreement, SOFTBANK BB must refund a part of the above deferred revenue, which is
attributable to the service agreement, if certain financial performance targets are not met.

41

SOFTBANK CORP. CONSOLIDATED FINANCIAL REPORTFor the fiscal year ended March 31, 2009

6. Line of credit as a creditor (not used)
As of March 31, 2008
14,676 million yen

As of March 31, 2009
17,266 million yen

7. Financial covenants
The Group's interest-bearing debt includes financial covenants, with which the Group is in compliance. The major financial
covenants are as follows. If the Group conflicts with the following covenants, creditors may require repayment of all debt. In
the events where the covenants set several conditions, the strictest condition is presented below.
(1) The amount of the Company's net assets at the end of each quarter must not fall below the larger of [1] or [2] below.
[1] 75% of the amount of the Company's net assets at the end of the most recent year.
[2] 60% of the amount of the Company's net assets at March 31, 2005.
(2) At the end of the year and the first half of the year, balance sheets of SOFTBANK BB and SOFTBANK TELECOM must
not show excessive debt. The consolidated balance sheets of BB Mobile Corp. at the end of the year and the first half ofthe year must not show excessive debt.
(3) Other than the exceptions listed below, as a general rule, members of the following restricted group of companies (the“restricted group”), will not take on debt obligations* from any company not included in the restricted group or issue any
preferred stock after October 12, 2006, the issuance date of these Euro-denominated Senior Notes due 2013.
(Restricted group)(a) SOFTBANK CORP.
(b) SOFTBANK BB Corp.
(c) SOFTBANK TELECOM Corp.
(d) SOFTBANK MOBILE Corp.
(e) Mobiletech Corporation(f) BB Mobile Corp.
(g) TELECOM EXPRESS Co., Ltd.
(h) Japan System Solution Co., Ltd.
(i) SBBM Corporation(j) SOFTBANK TELECOM PARTNERS Corp(k) Shiodome Management CORP.
(Exceptions)
The major exceptions are as follows:ⅰ. SOFTBANK CORP. is permitted to borrow up to ¥200 billion through its commitment line, etc.
ⅱ. Borrowing related to the acquisition of Vodafone K.K. (currently SOFTBANK MOBILE) (including refinancing) is
permitted up to a principal amount of ¥1,450 billion.
ⅲ.Among the restricted group, those involved in the Mobile Communications business segment (d, f, g, h) are permitted to incur
capital expenditure related debt incurring activities* up to a principal amount of ¥400 billion.
ⅳ.SOFTBANK TELECOM is permitted to borrow up to a principal amount of ¥175 billion.
ⅴ.The refinancing of the outstanding debt of the restricted group as of October 12, 2006, the issuance date of those notes, ispermitted up to the same level of principal amount.
ⅵ.In the event that [1] a company in the restricted group incurs lease obligations or [2] a subsidiary of SOFTBANK CORP.
other than the members of the restricted group incur lease obligations, SOFTBANK CORP. is permitted to provide
guarantees to leasing companies up to a principal amount of ¥400 billion for the total of [1] and [2].
ⅶ. SOFTBANK CORP. is permitted to make security lending transactions using the stock of Yahoo Japan up to, as a generalrule, ¥200 billion.
ⅷ. Other than (ⅰ) to (ⅶ) above, debt-incurring activities* which are pari passu with those notes are permitted up to ¥150
billion.
*(Note) Debt-incurring activities include new borrowings, leasing, etc.

42

SOFTBANK CORP. CONSOLIDATED FINANCIAL REPORTFor the fiscal year ended March 31, 2009(4) SOFTBANK MOBILE received a loan (the “SBM loan”) from Mizuho Trust & Banking Co., Ltd. (the “lender”), which, as
the Tokutei Kingai Trust Trustee, was entrusted with the proceeds by WBS Funding*1. Under the terms of the SBM loan
agreement, SOFTBANK MOBILE is allowed a certain degree of flexibility in its business operations, as a general rule.
However, in the event that the loan agreement's financial performance targets (reduction in cumulative debt, adjusted
EBITDA*2, leverage ratio*3) or operational performance targets (number of subscribers) are not met, depending on theimportance and the timing of issue, the influence of the lender on the operations of SOFTBANK MOBILE might beincreased. It is possible that limits will be placed on capital investment, that prior approval will be required fordevelopment of new services, that a majority of the board directors will be appointed, and that rights to assets pledged ascollateral, including shares of SOFTBANK MOBILE, will be exercised. As of March 31, 2009, there is no infringementof the debt covenants.
Note: *1. WBS Funding (Whole Business Securitization Funding)A special purpose company for the purpose of allocating the total amount raised from domestic and foreign
financial institutions--¥1,441.9 billion--under the WBS scheme through the Tokutei Kingai Trust Trustee for the
SBM loan to SOFTBANK MOBILE. SOFTBANK MOBILE borrowed from Tokutei Kingai Trust Trustee anamount of ¥1,366 billion, representing the total amount of ¥1,441.9 billion raised by WBS Funding less such items
as interest hedge costs and interest reserve.
*2. Adjusted EBITDA (Adjusted Earning Before Interests, Taxes, Depreciation, and Amortization)
Lease payments which are included in operating expenses are added back to EBITDA.
*3. Leverage ratio
Leverage ratio = Debt / Adjusted EBITDA. The balance of debt does not include capital financing,
subordinated loans from the SOFTBANK Group or Vodafone Oversea Financial Limited or existing bonds.
The amount of net assets shown in SOFTBANK TELECOM’s balance sheets for the end of each interim period and the end ofeach year must not fall below the larger of [1] or [2] below.
[1] 75% of the net assets shown in the consolidated balance sheets of SOFTBANK TELECOM at the end of the mostrecent year.
[2] 60% of the amount of net assets shown in the consolidated balance sheets of SOFTBANK TELECOM as of March 31,
2005.

43

SOFTBANK CORP. CONSOLIDATED FINANCIAL REPORTFor the fiscal year ended March 31, 2009

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

Sales commission and sales promotion expense

Fiscal year ended
March 31, 2008
450,658 million yen

Fiscal year ended
March 31, 2009
423,789 million yen

Payroll and bonuses

106,560

112,670

Provision for allowance for doubtful accounts

46,10933,341

2. Unrealized appreciation or loss on valuation of investments and gain or 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 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 appreciation or loss on valuation of investments
and gain or loss on sale of investments at subsidiaries in the U.S., net” and gain or loss on sale of investments, computed basedon the acquisition cost, is also included in this account. The unrealized appreciation or loss on valuation of investments andgain or loss on sale of investments included in “Unrealized appreciation or loss on valuation of investments and gain or loss onsale of investments at subsidiaries in the U.S., net” are as follows:

Fiscal year ended
March 31, 2008
Unrealized appreciation or loss on valuation of investment
at subsidiaries in the U.S.,net
Gain or loss on sale of investments
at subsidiaries in the U.S.,net
Total

Fiscal year ended
March 31, 2009

171

(234)

12,795(5,081)

12,967 million yen(5,316)

million yen

3. Impairment loss
(Fiscal year ended March 31, 2008)
The Company recorded impairment loss for the following asset groups.
Segment
Fixed-line
Telecommunications
Internet Culture

Purpose of use

Type of assets

Impairment loss

Access gateway switch (AGW)

Finance lease assets¥8,818 million

Other

Goodwill¥1,826 million(1) Method used to determine assets grouping
When reviewing for impairment, assets are grouped based on the business unit conducted by the Group. Moreover, assets
related to disposition or restructuring of business, idled assets, and assets leased to others are grouped individually.
(2)Details of Impairment loss
[1] Impairment loss of leased access gateway switch (AGW)
An impairment loss was recorded for certain unused access gateway switch (AGW) which were reserved for the analog
lines customers of otoku line direct connection fixed-line voice service. The present values of future lease payment, which
are considered as the carrying value of lease assets, were recorded in the consolidated statement of income.
[2] The goodwill related to the subsidiaries of the internet culture segment was recorded as impairment loss in the
consolidated statement of income.

44

SOFTBANK CORP. CONSOLIDATED FINANCIAL REPORTFor the fiscal year ended March 31, 2009

(Fiscal year ended March 31, 2009)
The Company recorded impairment loss for the following asset groups.
Segment

Purpose of use

Type of assets

Impairment loss

Telecommunications equipment, FinanceBroadband Infrastructure Assets for FTTH infrastructural businesslease assets, Construction in progress,¥28,999 million

Software, Structures, and other
Internet Culture

Other

Goodwill¥479 million(1) Method used to determine assets grouping
When reviewing for impairment, assets are grouped based on the business unit within the Group. Moreover, assets related todisposition or restructuring of a business, idled assets, and assets leased to others are grouped individually.
(2)Details of Impairment loss
[1] Impairment loss of assets in Broadband Infrastructure business
As SOFTBANK BB launched Yahoo BB hikari with FLET’S, which is a new FTTH Internet connection service, thefuture revenue generated from the assets for Yahoo BB! hikari service, which is a current FTTH infrastructural service,
was reassessed. As a result, impairment loss for the total carrying amounts of the assets and the removal costs wererecorded in the consolidated statements of income, since the carrying amounts of the assets were not recovered byestimated future cash flows.
The impairment loss consists of ¥10,702 million for telecommunications equipment, ¥7,259 million for finance leaseassets*, ¥4,630 million for constructing in progress, ¥1,265 million for software, ¥880 million for structures and ¥4,261
million for removal costs.
For the calculation of impaired value of the leased assets, the present values of the future lease payments were considered
to be the carrying value of leased assets.
*Note
The finance lease assets contracted before April 1, 2008 are accounted for as operating lease transactions.
[2] The goodwill related to certain subsidiaries of the Internet culture segment was recorded as an impairment loss in the
consolidated statements of income.
4. Loss on additional entrustment for debt assumption
As described in “Obligation of additional entrustment for debt assumption of bonds” in note 3 to the consolidated balance sheet,special loss is recorded for an additional entrustment required.

45

SOFTBANK CORP. CONSOLIDATED FINANCIAL REPORTFor the fiscal year ended March 31, 2009

(Consolidated Statements of Changes in Equity)
Fiscal year from April 1, 2007 to March 31, 2008:
1. Class and number of outstanding shares:(shares in thousands)

March 31, 2007

Increase

Decrease

March 31, 2008

1,055,862

24,801-

1,080,664

Number of common stocks

Note: Increase resulted from the exercise of stock acquisition rights.
2. Class and number of treasury stocks:(shares in thousands)

March 31, 2007

Increase

Decrease

158

5

-

Number of common stocks

March 31, 2008
163

Note: Increase resulted from the acquisition of the fractional shares.
3. Stock acquisition rights:

Type

SOFTBANK,
Corp.
Consolidated
Subsidiaries

Detail of stock acquisitionrightsClass of shares

Stock acquisition rights
issued in 2004

CommonstocksNumber of shares for stock acquisition rights(in thousands)
March 31,
March 31,
Increase
Decrease2008
2007
24,000-Total

24,000Millions ofyenMarch 31,
2008
-

-

-

120

-

120

4. Dividends:(1) Dividend paid
Resolution

Class ofAmount of dividend

Dividend pershares(Millions of yen)share

Ordinary general meeting ofCommonshareholders, June 22, 2007

stocks

2,639

¥2.50

Record date

Effective date

March 31, 2007

June 25, 2007

(2) Dividends which recorded date is in the fiscal year 2008 and effective date for payment is in the fiscal year 2009
Resolution

Class ofAmount of dividend

Source ofDividend

shares(Millions of yen)

dividend

per share

Ordinary general meeting ofCommonshareholders, June 25, 2008

stocks2,701

Retainedearnings¥2.50

Record date

Effective date

March 31, 2008

June 26, 2008

5. Accounting for Uncertainty in Income Taxes
A subsidiary of the Company in the United States of America applied “Accounting for Uncertainty in Income Taxes”(Financial Accounting Standard Board Interpretation No. 48), effective for fiscal years beginning after December 15, 2006,
from the fiscal year ended March 31, 2008.
The cumulative effect of applying the provisions of this Interpretation was recorded as an adjustment to the opening balance ofaccumulated deficit.
6. Exercise of warrants
Exercise of warrants is related to exercise of stock subscription rights and stock acquisition rights.

46

SOFTBANK CORP. CONSOLIDATED FINANCIAL REPORTFor the fiscal year ended March 31, 2009

Fiscal year from April 1, 2008 to March 31, 2009:
1. Class and number of outstanding shares:(shares in thousands)

March 31, 2008

Increase

Decrease

March 31, 2009

1,080,664

359-

1,081,023

Number of common stocks

Note: Increase resulted from the exercise of stock acquisition rights.
2. Class and number of treasury stocks:(shares in thousands)

March 31, 2008

Increase

Decrease

163

5

-

Number of common stocks

March 31, 2009169

Note: Increase resulted from the acquisition of the fractional shares.
3. Stock acquisition rights:(1) Stock acquisition rights as stock options
Type

Detail of stock acquisitionrightsConsolidated
Subsidiaries-

Number of shares for stock acquisition rights(in thousands)
March 31,
March 31,
Increase
Decrease
2009
2008

Class of shares

Total

Millions ofyenMarch 31,
2009

-

271

-

271

(2) Stock acquisition rights other than aboveType

Detail of stock acquisitionrightsConsolidated
Subsidiaries-

Number of shares for stock acquisition rights(in thousands)
March 31,
March 31,
Increase
Decrease
2009
2008

Class of shares

Total

Millions ofyenMarch 31,
2009

-

18

-

18

4. Dividends:(1) Dividend paid
Resolution

Class ofAmount of dividend

Dividend pershares(Millions of yen)share

Ordinary general meeting ofCommonshareholders, June 25, 2008

stocks

2,701

¥2.50

Record date

Effective date

March 31, 2008

June 26, 2008

(2) Dividends which recorded date is in the fiscal year 2009 and effective date for payment is in the fiscal year 2010
Resolution

Class ofAmount of dividend

Source ofDividend

shares(Millions of yen)

dividend

per share

Ordinary general meeting ofCommonshareholders, June 24, 2009

stocks2,702

47

Retainedearnings¥2.50

Record date

Effective date

March 31, 2009

June 25, 2009

SOFTBANK CORP. CONSOLIDATED FINANCIAL REPORTFor the fiscal year ended March 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 March 31, 2008
million yen

As of March 31, 2009

Cash and deposits

491,161

Marketable securities

4,928

2,917

Time deposits with original maturity over three months(2,145)(442)

Stocks and bonds with original maturity over three months(3,678)(2,783)

Cash and cash equivalents

490,266

million yen

457,953 million yen

457,644 million yen

2. Scope of Purchase of property and equipment, and intangibles in the consolidated statements of cash flows“Purchase of property and equipment, and intangibles” are comprised of cash outflows from purchasing property and equipment,
and intangible assets (excluding goodwill) and long-term prepaid expenses.
3. Proceeds from sale and lease back of equipment newly acquired
Once SOFTBANK MOBILE purchases telecommunications equipment for the purpose of assembly, installation and inspection,
SOFTBANK MOBILE sells the equipment to lease companies for sale and lease back purpose. The leased asset and leaseobligation are recorded in the consolidated balance sheets.
The cash outflows from the purchase of the equipment from vendors are included in “Purchase of property and equipment, andintangibles” and the cash inflows from the sale of the equipment to lease companies are included in “Proceeds from sale andlease back of equipment newly acquired.”4.

Assets and liabilities of a newly consolidated subsidiary by acquisition
The estimated fair values of the assets acquired and liabilities assumed of a new consolidated subsidiary at the acquisition dateare as follows:
SOFTBANK TELECOM PARTNERS Corp.
As of April 1, 2008
Current assets

20,250Non-current assets

million yen

401

Goodwill

22,077

Current liabilities(12,726)

Acquisition cost before April, 2008

(4,473)Acquisition cost

25,530Cash and cash equivalents of newly(8,325)consolidated subsidiary (Note)
Payment for the acquisition(17,204)

million yen

Note: Loan receivables to the seller of SOFTBANK TELECOM PARTNERS Corp. of ¥7,500 million, which werecollected at the same time of the payment for the acquisition, were included.

48

SOFTBANK CORP. CONSOLIDATED FINANCIAL REPORTFor the fiscal year ended March 31, 2009

(Segment Information)
1. Business segment information
For the fiscal year ended March 31, 2008
Mobile(Millions of yen)Fixed-line

Broadband

Internet

Elimination
e-Commerce

Others

Total

CultureConsolidated

Communications

Infrastructure

Telecommunications

or Corporate¥1,618,935¥251,309¥324,722¥243,849¥255,690¥81,660¥2,776,168¥-¥2,776,168

11,916

6,759

46,017

3,792

15,033

18,212

101,733(101,733)

-

Total

1,630,851

258,069

370,740

247,642

270,723

99,8732,877,902(101,733)

2,776,168

Operating expenses

1,456,281

218,369

367,400

132,405

267,567

104,9942,547,018(95,137)

2,451,881

Operating income (loss)

174,570

39,7003,340

115,237

3,156(5,121)

330,883(6,595)324,287

Identifiable assets

3,041,749

165,971440,414506,430

88,047259,101

4,501,713

57,1884,558,901

193,196

26,55043,351

11,221

1,117

3,398

278,835

469

279,304

-

-

8,818

1,826

-

-

10,644-

10,644¥235,547¥21,543¥13,853¥12,975¥2,436¥2,677¥289,033¥586¥289,619

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

Depreciation
and amortization
Impairment loss
Capital expenditures

For the fiscal year ended March 31, 2009
MobileBroadband(Millions of yen)Fixed-line

Internet

Elimination
e-Commerce

Others

Total

CultureConsolidated

Communications

Infrastructure

Telecommunications

or Corporate¥1,554,783¥229,241¥320,358¥251,166¥247,352¥70,133¥2,673,035¥-¥2,673,035

8,107

5,958

43,273

3,071

10,831

18,09389,335(89,335)-

Total

1,562,890

235,199363,632

254,238

258,184

88,2262,762,371(89,335)

2,673,035

Operating expenses

1,391,500

187,946

344,663

129,140

253,547

88,4202,395,220(81,305)

2,313,914

Operating income (loss)

171,389

47,253

18,968125,098

4,636

(194)

367,151(8,030)359,121

Identifiable assets

3,033,653

158,146436,256

347,395

69,086

240,818

4,285,357

101,314

4,386,672

212,946

22,012

44,31912,290

1,328

3,309

296,206

918

297,124-

28,999

-

479

-

-

29,478-29,478¥199,568¥14,697¥51,824¥31,984¥1,414¥4,766¥304,256¥241¥304,498

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

Depreciation
and amortization
Impairment loss
Capital expenditures

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 2. The SOFTBANK Group” in details
on page 22.
3. Unallocated operating expenses for the fiscal year ended March 31, 2008 and March 31, 2009 in the column “Elimination or Corporate,”
mainly represent expenses of the corporate division of the Company, which totaled ¥7,959 million and ¥9,278 million, respectively.
4. Corporate assets at March 31, 2008 and 2009 in the column “Elimination or corporate” were ¥87,251 million and ¥135,258 million,
respectively. Corporate assets represent mainly surplus operating funds (cash and marketable securities), long-term investment securitiesof the Company and assets held by the corporate division of the Company.
5. “Depreciation and amortization” includes depreciated amount of long-term prepaid expenses
6. “Capital expenditures” include increase in “Property and equipment, net,” “Intangible assets, net,” and long-term prepaid expense on the
consolidated balance sheet, and increase in “goodwill” and each asset in the acquisition of newly consolidated subsidiary.

49

SOFTBANK CORP. CONSOLIDATED FINANCIAL REPORTFor the fiscal year ended March 31, 2009

2. Geographic segment information
For the fiscal year ended March 31, 2008

(Millions of yen)

Japan

North
America

OthersTotal

Elimination

Consolidated

or corporate

Net sales(1)Customers¥2,760,397¥1,342¥14,428¥2,776,168¥-¥2,776,168

2,739

-

221

2,961

(2,961)-

2,763,136

1,342

14,6502,779,129(2,961)2,776,168

Operating expenses

2,429,573

3,022

15,4632,448,059

3,821

2,451,881

Operating income (loss)

333,562(1,679)(813)

331,070(6,782)324,287¥4,057,935¥219,004¥194,711¥4,471,651¥87,250¥4,558,901(2)Inter-segment
Total

Identifiable assets

For the fiscal year ended March 31, 2009

(Millions of yen)

Japan

North
America

OthersTotal

Elimination

Consolidated

or corporate

Net sales(1)Customers¥2,659,114¥1,066¥12,853¥2,673,035¥-¥2,673,035

3,362

-

-

3,362

(3,362)-

2,662,477

1,066

12,853

2,676,398(3,362)

2,673,035

Operating expenses

2,295,801(1,232)

13,5302,308,098

5,815

2,313,914

Operating income (loss)

366,676

2,299

(676)

368,299(9,178)359,121¥3,987,163¥141,933¥154,884¥4,283,981¥102,690¥4,386,672(2)Inter-segment
Total

Identifiable assets

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

2. Unallocated operating expenses for the fiscal years ended March 31, 2008 and 2009 in the column “Elimination or corporate,” whichmainly represent expenses of the corporate division of the Company, were ¥7,959 million and ¥9,278 million, respectively.
3. Corporate assets at March 31, 2008 and 2009 in the column “Elimination or corporate” were ¥87,251 million and ¥135,258 million,
respectively. Corporate assets represent mainly surplus operating funds (cash and marketable securities), long-term investment
securities of the Company and assets held by the corporate division of the Company.
4. 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 ¥3,446 million and credited it to operating expenses.

3. Overseas sales

Disclosure of overseas sales was omitted because the total overseas sales were less than 10% of total consolidated
sales.

50

SOFTBANK CORP. CONSOLIDATED FINANCIAL REPORTFor the fiscal year ended March 31, 2009

(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 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 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 eachyear:
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
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

As of March 31, 2008

As of March 31, 2009

179,479(66,202)

171,192(77,309)(30,521)82,755

million yen(37,786)
56,096

million yen

million yen

47,004(9,836)
37,168million yen

million yen

17,227(8,424)(1,077)
7,724

million yen

47,005(7,429)39,575
17,979(6,302)(1,253)
10,4239,373(3,353)(169)

Net leased property

5,851

Acquisition cost
Accumulated depreciation
Accumulated impairment loss

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

Net leased property

138,606

9,086(4,919)(171)
million yen

3,996

million yen

Total

51

244,511(100,489)(39,035)
million yen

104,986

million yen

SOFTBANK CORP. CONSOLIDATED FINANCIAL REPORTFor the fiscal year ended March 31, 2009

Long-term prepaid expenses relating to a lease contract, in which the contract term and payment term are different, for theyear ended March 31, 2008 and March 31, 2009 are ¥15,053 million and 19,867 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 millions for the year ended March 31, 2009 are included in“Other current assets” in the consolidated balance sheets.
(2) Obligations under finance lease at the end of each year:
As of March 31, 2008

Due within one year
Due after one year

32,482
141,179

As of March 31, 2009

30,726110,651

Total

173,662

million yen

141,378

million yen

Balance of allowance for impairment loss on
leased property

21,601

million yen

18,809million yen(3)Lease payments, reversal of allowance for impairment loss on leased property, amounts equivalent to depreciation,interest expense and impairment loss for each year:
Fiscal year ended

Fiscal year ended

March 31, 2008

44,329Lease payments
Reversal of allowance for impairment loss on
leased property
Depreciation expense
Interest expense
Impairment loss

March 31, 2009

million yen

41,444

5,387

10,05130,917
12,788
8,818

26,76910,721
7,259

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.

2. Non-cancelable operating lease transactions(As a lessee)
The future lease payments under non-cancelable operating leases at the end of each year:
As of March 31, 2008

As of March 31, 2009

Due within one year
Due after one year

2,959

21,93013,126

41,129Total

16,086

million yen

63,059million yen(As a lessor)
The future lease receivables under non-cancelable operating leases at the end of each year:
As of March 31, 2008

Due within one year
Due after one year
Total

52

As of March 31, 2009

1,371

1,142

1,996
3,367

1,537
2,679

million yen

million yen

SOFTBANK CORP. CONSOLIDATED FINANCIAL REPORTFor the fiscal year ended March 31, 2009

(Tax Effect Accounting)
For the fiscal year ended March 31, 2008

For the fiscal year ended March 31, 2009

1. Significant components of deferred tax assets and liabilities

1.

Significant components of deferred tax assets and liabilities(Million yen)

(Million yen)

Deferred tax assets
Loss carryforwards

Deferred tax assets¥180,330

Loss carryforwards¥127,398

82,205

Depreciation / Amortization

108,078

74,443

Revaluation of acquired consolidated subsidiaryat the respective fair market value

63,140Investment securities

54,211

Allowances for doubtful accounts

39,459Allowances for doubtful accounts

32,556

Investment securities

28,330Allowances for point mileage

17,826

Allowances for point mileage

17,015

Deferred revenue

13,472

Deferred revenue

8,599

Deferred loss on derivatives under hedge accounting

8,308

Others72,772

Depreciation / Amortization
Revaluation of acquired consolidated subsidiaryat the respective fair market value

Others

78,921Gross deferred tax assets

542,274

Gross deferred tax assets

464,793

Less: valuation allowance(286,137)

Less: valuation allowance(201,794)

Total deferred tax assets

256,137

Total deferred tax assets

262,999

Deferred tax liabilities
Deferred tax liabilities

Unrealized gains on other securities(20,660)

Unrealized gains on other securities(58,666)

Deferred gain on derivatives under hedge accounting(16,022)

Others(6,710)

Others(3,861)

Total deferred tax liabilities(65,376)

Total deferred tax liabilities(40,545)

Net deferred tax assets¥190,760

Net deferred tax assets¥222,454

2. Reconciliation between the statutory income tax rate2.

and effective income tax rate:
Statutory tax rateand effective income tax rate:
40.69 %

(Reconciliation)
Change in valuation allowance due to adoptionof consolidated taxation system in subsidiaries

Reconciliation between the statutory income tax rate
Statutory tax rate

40.69 %

(Reconciliation)(16.34) %Change in valuation allowance(53.54) %Other changes in valuation allowance

7.28

Amortization of goodwill

22.81

Amortization of goodwill

10.74

Equity in losses of affiliated companies

2.16

Equity in earnings of affiliated companies(7.71)Tax rate differential

5.38

Others(0.05)

Others0.86

Income tax rate per statements of income

34.61 %

Income tax rate per statements of income

53

18.36 %

SOFTBANK CORP. CONSOLIDATED FINANCIAL REPORTFor the fiscal year ended March 31, 2009

(Investment in Debt and Equity Securities)
As of March 31, 2008
1. Marketable and investment securities at fair value(Millions of yen)

As of March 31, 2008
Investment Cost

Carrying Amount

Differences¥17,893¥162,793¥144,900

1,101

1,108

6

18,995

163,901

144,906

11,3258,882(2,443)Carrying Amount > Investment Cost
(1)Equity securities(2)Others
Sub-total
Carrying Amount≦Investment Cost
(1)Equity securities(2)Corporate bonds

218

210

(8)

Sub-total

11,5449,093(2,451)

Total¥30,540¥172,994¥142,454

2. Marketable and investment securities sold during the fiscal year ended March 31, 2008
(Millions of yen)

Sales Price

Gain on sales

Loss on sales(1)Equity securities¥18,832¥6,304¥133(2)Debt securities

177

13

-

(3)Others

9,864

292

2

¥28,874¥6,611

¥136

Total

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

Carrying Amounts(1)Held-to-maturity debt securities
Unlisted foreign debt securities¥700

Unlisted debt securities

368(2)Available-for-sale and other securities
Unlisted equity securities, excluding over-the-counter stocks

91,446

Investments in limited partnerships

6,725

Money Management Fund

2,519

Unlisted foreign debt securities

958

Others

1,058
Total

¥103,777

4. The redemption schedule for “held-to-maturity debt securities” and “available-for-sale and other securities” withmaturity date subsequent to the consolidated balance sheet date(Millions of yen)

April 1, 2008 to

April 1, 2009 to

April 1, 2013to

April 1, 2018

March 31, 2009

March 31, 2013

March 31, 2018

and thereafter

1,258

600

-

Debt securities
Corporate bonds

194

Local bonds

100

-

-

-

294

1,258

600

-

Total

54

SOFTBANK CORP. CONSOLIDATED FINANCIAL REPORTFor the fiscal year ended March 31, 2009

5.

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 March 31, 2008
are as follows:

Proceeds from sales:
Carrying amounts of investment securities at fair value :As of March 31, 2008
15,000 million yen
26,042 million yen

Regarding net changes in fair value of the investment securities and gain on sale of the investment securities, please see “Notes
Consolidated Statements of Income 2. Unrealized appreciation or loss on investments and gain or loss on sale of investments
at subsidiaries in the United States of America, net” in details on page 44.

55

SOFTBANK CORP. CONSOLIDATED FINANCIAL REPORTFor the fiscal year ended March 31, 2009

As of March 31, 2009
1.Marketable and investment securities at fair value(Millions of yen)

As of March 31, 2009
Investment Cost

Carrying Amount¥16,640¥71,766

Differences

Carrying Amount > Investment Cost
(1)Equity securities(2)Others¥55,12558

59

1

16,69871,82555,126(1)Equity securities

8,629

8,023

(605)

(2)Others

2,866

2,611

(254)

Sub-total

11,496

10,635

(860)

Total

¥28,194¥82,461¥54,266

Sub-total
Carrying Amount≦Investment Cost

2. Marketable and investment securities sold during the fiscal year ended March 31, 2009
(Millions of yen)

Sales Price(1)Equity securities

Gain on sales¥4,851

Loss on sales¥2,659¥114(2)Debt securities

225

-

-

(3)Others

4,986

6

193

¥10,062¥2,666

¥307

Total

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

Carrying Amounts(1)Held-to-maturity debt securities
Unlisted foreign debt securities¥700

Unlisted debt securities

299(2)Available-for-sale and other securities
Unlisted equity securities, excluding over-the-counter stocks

80,747

Investments in limited partnerships

6,732

Others223

Total¥88,702

4. The redemption schedule for “held-to-maturity debt securities” and “available-for-sale and other securities” withmaturity date subsequent to the consolidated balance sheet date(Millions of yen)

April 1, 2009 to

April 1, 2010 toApril 1, 2014to

April 1, 2019

March 31, 2010

March 31, 2014

March 31, 2019

and thereafter

100

300

600

-

Local bonds

79

134

-

-

Sub-total

179

434

600

-

Debt securities
Corporate bonds

56

SOFTBANK CORP. CONSOLIDATED FINANCIAL REPORTFor the fiscal year ended March 31, 2009

5.

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 March 31, 2009
are as follows:
As of March 31, 2009
3,627 million yen
18,064 million yen

Proceeds from sales:
Carrying amounts of investment securities at fair value :Regarding net changes in fair value of the investment securities and gain on sale of the investment securities, please see “Notes
Consolidated Statements of Income 2. Unrealized appreciation or loss on investments and gain or loss on sale of investments
at subsidiaries in the United States of America, net” in details on page 44.

(Derivative Transactions)
1. Currency Related(Millions of yen)March 31, 2008
Contract amounts
Over 1Nature of transaction

year

March 31, 2009

Fair

Unrealizedvalue

gain(loss)

Contract amounts
Over 1year

Fair

Unrealized

value

gain (loss)

Forward exchange contracts toOff-market
transactions

・Purchase U.S. dollars and sell Japanese yen

86,218-85,324(893)

83,589-86,5192,929

・ Purchase Euro and sell Japanese yen

3,034

-

3,082

48

3,637

-

3,370

(267)

Total

¥(845)

Notes: 1. Fair value is based on information provided by financial institutions at the end of each fiscal year.
2. Derivative transactions to which the Company applied hedge accounting are excluded.
2. Interest Related
There are no applicable items.
Note: Derivative transactions to which the Company applied hedge accounting are excluded.
3. Securities Related
There are no applicable items.
Note: Derivative transactions to which the Company applied hedge accounting are excluded.

57¥2,662

SOFTBANK CORP. CONSOLIDATED FINANCIAL REPORTFor the fiscal year ended March 31, 2009

(Pension and Severance Plans)
1. Pension Plans
Employees of the Company and most of its domestic consolidated subsidiaries participate in defined contribution pension plans
and the contributory defined benefit welfare pension plans.
Funded status and the Group employees’ percentages of total participants in the plan under a multi-employer contributory
defined benefit welfare pension plan for the year ended March 31, 2009 are as follows:(The Pension Fund of Kanto IT Software)(1) Funded status (as of March 31, 2008)
Plan assets at fair value

145,958

Benefit obligation under pension financing

140,968

Net asset

million yen

4,989

million yen

million yen(2) The Group employees’ percentages of total participants in the plan (as of March 31, 2008)
12.7％(The Pension Fund of Japan Electronics Information Technology Industry)(1) Funded status (as of March 31, 2008)
Plan assets at fair value

193,907

Benefit obligation under pension financing

226,155

Net liability(32,248)

million yen(2) The Group employees’ percentages of total participants in the plan (as of March 31, 2008)
0.2％

2. Projected Benefit Obligation
Projected benefit obligation (PBO)
Plan assets at fair value
Unfunded PBO
Unrecognized actuarial losses
Net liability for retirement benefits
Prepaid pension costs
Accrued retirement benefits

March 31, 2008

March 31, 2009

16,158 million yen

16,076 million yen--

16,15816,076--

16,15816,076--

16,158 million yen

16,076 million yen

3. Pension and Severance Costs
March 31, 2008

March 31, 2009

Service costs (Note 1)

1,063 million yen

1,198 million yen

Interest costs

349

336

Recognized actuarial losses

466

618

Contributions

2,048

2,077

Net pension and severance costs

3,926 million yen

4,231 million yen

Notes:
1. Service costs include ¥1,060 million for FY2008 and ¥1,186 million for FY2009 of contributions to multi-employer
contributory defined benefit welfare pension plans.

58

SOFTBANK CORP. CONSOLIDATED FINANCIAL REPORTFor the fiscal year ended March 31, 2009

(Stock Option)
There are no significant stock option transactions as of March 31, 2008 and March 31, 2009.

(Business Combinations)
Merger of consolidated subsidiaries
1. Merger of Yahoo Japan and SOFTBANK IDC SOLUTIONS Corp.
On February 24, 2009, the Company transferred all shares of SOFTBANK IDC SOLUTIONS Corp., a Company’s
wholly-owned subsidiary, to Yahoo Japan, a Company’s consolidated subsidiary.
On March 30, 2009, Yahoo Japan merged with SOFTBANK IDC SOLUTIONS Corp.
（1） Outline of the merger[1] Companies involved in the merger
Yahoo Japan and SOFTBANK IDC SOLUTIONS Corp.
[2] Principal business of the merging companies
Yahoo Japan
Internet Culture: Internet-based advertising operations, portal business, and auction business etc.
SOFTBANK IDC SOLUTIONS Corp.
Data center business[3] Method of the merger
Yahoo Japan, as the surviving company, acquired SOFTBANK IDC SOLUTIONS Corp., which was subsequently
dissolved.
[4] Company’s name after the merger
Yahoo Japan[5] Purpose and method of the merger
This merger enables the early establishment of a strategic base for the next generation Internet business by maximizing thesynergy effect between Yahoo Japan and SOFTBANK IDC SOLUTIONS Corp., and aims to enhance sustainable growthand competitiveness of the Internet business and the data center business. Yahoo Japan, as the surviving company, acquired
SOFTBANK IDC SOLUTIONS Corp., which was subsequently dissolved.
（2）

Summary of accounting procedures
The merger is accounted as under common control transaction, based upon “Accounting Standard for Business
Combinations” (Accounting Standards issued on October 31, 2003 by the Business Accounting Council in Japan) and“Guidance on Accounting Standard for Business Combinations and Accounting Standard for Business Divestitures”(Financial Accounting Standards Implementation Guidance No. 10 issued on November 15, 2007).

59

SOFTBANK CORP. CONSOLIDATED FINANCIAL REPORTFor the fiscal year ended March 31, 2009

(Per Share Data)

Fiscal year ended

Fiscal year ended

March 31, 2008

March 31, 2009

Shareholders’ equity per share (yen)¥355.15¥346.11Net income per share - primary (yen)101.6839.95

Net income per share – diluted (yen)

95.90

38.64

Basic data for computation of the per share data

Fiscal year ended

Fiscal year ended

March 31, 2008

March 31, 2009

1. Net income (in millions of yen)

108,624

43,172

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

108,624

43,172--

1,068,291,756

1,080,700,888

5. Adjustment for net income used to calculate net income per share– diluted (in millions of yen)

1,508

1,522

6. Increase of common stock used to calculate net income per share– diluted (unit: shares)

80,134,671

75,869,347

3. Amounts not allocated to shareholders(in millions of yen)
4. Weighted average number of common stock outstanding
during each year (unit: shares)

Stock acquisition rights
agreement on June 22,2005 in accordance withspecial resolution at generalshareholders’meeting

7. Residual securities which do not dilute net income per share60

Stock acquisition rights
agreement on June 22,2005 in accordance withspecial resolution at generalshareholders’meeting

SOFTBANK CORP. CONSOLIDATED FINANCIAL REPORTFor the fiscal year ended March 31, 2009

5. Others(Change of Board)(1)

Change of Representative
Not applicable(2)

Change of other directors
Not applicable<Reference>
The structure of the Board of the Company as of June 24, 2009 will be as stated below.
1. Directors (9 people)
Name

Title

Masayoshi Son

Chairman & CEO

Ken Miyauchi

Director

Kazuhiko Kasai

Director

Masahiro Inoue

Director

Ronald Fisher

Director

Yun MaDirector

Tadashi Yanai

Director

Jun Murai

Director

Mark Schwartz

Director

The Directors, Messrs. Tadashi Yanai, Jun Murai, and Mark Schwartz are the External Directors.

2. Statutory Auditors (4 people)
Name

Title

Mitsuo Sano

Full-time Statutory Auditor

Soichiro Uno

Statutory Auditor

Koichi Shibayama

Statutory Auditor

Hidekazu Kubokawa

Statutory Auditor

The Statutory Auditors, Messrs. Soichiro Uno, Koichi Shibayama, and Hidekazu Kubokawa are the External Statutory
Auditors.

61