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

SOFTBANK CORP.
CONSOLIDATED FINANCIAL REPORTFor the nine-month period ended December 31, 2010
Tokyo, February 3, 2011

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

Net sales

Operating income

Ordinary income

Net income

Amount%Amount%Amount%Amount%Nine-month period ended
December 31, 2010

¥2,249,901

10.0¥482,159

31.6¥399,917

42.2¥142,299

50.0

Nine-month period ended
December 31, 2009

¥2,045,304

3.2¥366,319

33.4¥281,187

61.1¥94,861

63.0

Net income
per share－basic(yen)

Net income
per share－diluted(yen)

Nine-month period ended
December 31, 2010¥131.47¥126.32

Nine-month period ended
December 31, 2009¥87.68¥84.55(2) Financial Condition(Millions of yen; amounts less than one million yen are omitted.)

Total assets

Total equity

Equity ratio (%)

Shareholders' equity
per share (yen)As of December 31, 2010

¥4,375,058¥814,842

13.0¥527.23

As of March 31, 2010

¥4,462,875¥963,971

10.5¥434.74

Note: Shareholders’equity (consolidated)
As of December 31, 2010:
As of March 31, 2010:¥570,644 million¥470,531 million

2. Dividends(Record date)

First quarter

Fiscal year ended
March 31, 2010
Fiscal year ending
March 31, 2011
Fiscal year ending
March 31, 2011
(Forecasted)
Revision of forecasts on the dividends: No

Second quarter

Dividends per share
Third quarter

Fourth quarter

Total

(yen)

(yen)

(yen)

(yen)

(yen)

-

0.00

-

5.00

5.00

-

0.00

5.00

5.00

3.

Forecasts on the consolidated operation results for the fiscal year ending in March 2011 (April 1, 2010 – March 31, 2011)(Percentages are shown as year-on-year changes)(Millions of yen)

Operating income
Full financial year

¥600,000

28.8(%)

Revision of forecasts on the consolidated operation results: Yes

4. Others(Please refer to page 19 “2. Others” for details)(1) Significant Changes in Scope of Consolidation:No
Note: Existence or non existence of significant changes in scope of consolidation of specified subsidiaries(2) Application of simple accounting methods or special accounting methods for preparation for the consolidated financial
statements:
No
Note: Existence or non existence of application of simple accounting methods or special accounting methods for the
consolidated financial statements(3) Changes in accounting principles, procedures, disclosure methods, etc., used in the presentation of the consolidated financial
statements[1] Changes due to revisions in accounting standards:
Yes[2] Changes other than those in [1]:No
Note: Existence or non existence of changes in accounting principles, procedures, disclosure methods, etc., used in thepresentation of the consolidated financial statements(4) Number of shares issued (Common stock)[1] Number of shares issued (including treasury stock):
As of December 31, 2010:
As of March 31, 2010:

1,082,526,378 shares
1,082,503,878 shares[2] Number of treasury stock:
As of December 31, 2010:
As of March 31, 2010:

179,491 shares
174,775 shares[3] Weighted average number of common stock:
As of December 31, 2010:
As of December 31, 2009:

1,082,344,678shares
1,081,880,972 shares* Implementation status of quarterly review proceduresThis quarterly consolidated financial report is not subject to quarterly review procedures based on Financial Instruments and Exchange Act and thereview procedures for the quarterly consolidated financial statements were being conducted when this report was disclosed.

* Note to forecasts on the consolidated operating results and other items
The forecast figures are estimated based on the information which SOFTBANK CORP. is able to obtain at the present point and assumptions which are
deemed to be reasonable. However, actual results may be different due to various factors. Please refer to page 17 “1. Qualitative Information
Regarding Nine-month Period Results (3) Earnings Forecasts” for details of notes to precondition and usage for forecasts.

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

(Appendix)
Content
1.

Qualitative Information Regarding the Nine-month Period Results(1)

Qualitative Information Regarding Consolidated Results of Operations
1. Consolidated Results of Operations
2. Results by Business Segment（Reference 1: Principal Operational Data）（Reference 2: Capital Expenditure and Depreciation）(2)

Qualitative Information Regarding Consolidated Financial Position
1. Assets, Liabilities and Equity
2. Cash Flows（Reference: Major Financing Activities）

2.

(3)

Earnings Forecasts(4)

The SOFTBANK Group

Others(1)

Significant Changes in Scope of Consolidation(2)

Application of Simple Accounting Methods or Special Accounting Methods for

p. 2
p. 2
p. 2
p. 5
p. 9
p.11
p.12
p.12
p.14
p.16
p.17
p.18
p.19
p.19
p.19

Preparation for the Consolidated Financial Statements(3)

Changes in Accounting Principles, Procedures, Disclosure Methods, etc., Usedp.19

in the Presentation of the Consolidated Financial Statements
3.

Consolidated Financial Statements(1)

Consolidated Balance Sheets(2)

Consolidated Statements of Income(3)

Consolidated Statements of Cash Flows(4)

Significant Doubt About Going Concern Assumption(5)

Significant Changes in Shareholders` Equity(6)

Basis of Presentation of Consolidated Financial Statements

(7)

Notes

1

p.20
p.20
p.22
p.24
p.26
p.26
p.26
p.27

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

1.

Qualitative Information Regarding the Nine-month Period Results(1) Qualitative Information regarding Consolidated Results of Operations
1. Consolidated Results of Operations<Overview of results for the nine-month period from April 1 to December 31, 2010>
For the nine-month period from April 1 to December 31, 2010 (hereafter “the period”), the SOFTBANK Group(hereafter “the Group”) achieved ¥2,249,901 million of consolidated net sales, a ¥204,596 million (10.0%) increase
compared with the same period of the previous fiscal year (April 1 to December 31, 2009, hereafter “year-on-year”),
with a ¥115,839 million (31.6%) increase in operating income to ¥482,159 million.

This consolidated revenue andprofit growth was driven by strong performance at the Mobile Communications segment.

Ordinary income grew

¥118,730 million (42.2%) to ¥399,917 million. Net income rose ¥47,438 million (50.0%) to ¥142,299 million.
The Company owns 100% shares issued by WILLCOM, Inc. However, WILLCOM, Inc. is in the process ofreorganization under the Corporate Reorganization Act and the Company does not have effective control over
WILLCOM, Inc. Therefore, WILLCOM, Inc. is not treated as a subsidiary.
Note:
Definition of terms: as used in this consolidated financial report for the nine-month period ended December 31, 2010, references
to “the Company,” “the Group” and “the SOFTBANK Group” are to SOFTBANK CORP. and its consolidated subsidiaries except
as the context otherwise requires or indicates.

The main factors affecting earnings for the period were as follows:(a) Net Sales
Net sales totaled ¥2,249,901 million, for a ¥204,596 million (10.0%) year-on-year increase. This was mainly the
result of strong growth in the number of mobile phone subscribers, combined with a rise in ARPU1 and the numberof mobile handsets shipped2, at the Mobile Communications segment.
Notes:
1. Average Revenue Per User.
2. Handsets shipped: handsets shipped (sold) to agents.

(b) Cost of Sales
The cost of sales rose ¥46,780 million (4.8%) year-on-year to ¥1,027,735 million.

The increase primarilyreflected a higher cost of goods at the Mobile Communications segment on the increase in the number of mobile
handsets shipped, while depreciation and amortization expenses related to the 2G mobile phone service decreased
as a result of the termination of this service in March 2010.

(c) Selling, General and Administrative Expenses
Selling, general and administrative expenses grew ¥41,976 million (6.0%) year-on-year to ¥740,006 million.
3This

was mainly because of increased sales commissions associated with the increase in the number of mobile handsets
sold4 at the Mobile Communications segment.
Notes:
3. Sales commissions paid to sales agents per new subscription and upgrade purchase.
4. Handsets sold: handsets sold to customers upon new subscription and handset upgrade.

2

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the nine-month period ended December 31, 2010(d) Operating Income
As a result, operating income totaled ¥482,159 million, for a ¥115,839 million (31.6%) year-on-year increase.
The operating margin rose 3.5 percentage points year-on-year, to 21.4%.

(e) Non-operating Income / Expenses
Non-operating income totaled ¥15,044 million, a ¥5,059 million year-on-year increase. Non-operating expenses
stood at ¥97,285 million, a ¥2,168 million year-on-year increase.

The primary item of non-operating expenses

was interest expense, which totaled ¥80,610 million.

(f) Ordinary Income
Ordinary income therefore totaled ¥399,917 million, for a ¥118,730 million (42.2%) year-on-year increase.

(g) Special Income
Special income totaled ¥11,686 million, the main components of which were a ¥4,907 million gain on sale ofinvestment securities and a ¥4,187 million gain on repurchase of minority interests and long-term debt. Gain on
repurchase of minority interests and long-term debt was the result of the Company’s acquisition, which was carriedout on December 10, 2010. This acquisition, amounting to a total of ¥412,500 million, contains all class 1
preferred stock series 1 and stock acquisition rights issued by BB Mobile Corp. (hereafter “BB Mobile”) to
Vodafone International Holdings B.V., and the entire amount of the principal and accrued interest of a long-termloan receivable, which was recorded as long-term debt in the Company’s consolidated balance sheets, fromSOFTBANK MOBILE Corp. (hereafter “SOFTBANK MOBILE”) to Vodafone Overseas Finance Limited.

(h) Special Loss
The special loss was ¥26,997 million, which included a ¥7,841 million valuation loss on option and a ¥7,099
million loss on adjustment for changes of the accounting standard for asset retirement obligations. The Company
has entered into agreements containing a put option5 and a call option6 for shares of Wireless City Planning Inc.
(hereafter “WCP”), which is the Company’s affiliate under equity method, with its shareholders other than the
Company.

These options are measured at fair value and the valuation loss is recorded as described above.

Notes:
5. Put option: the right of the other shareholders of WCP to sell the WCP shares to the Company.
6. Call option: the Company’s right to buy the WCP shares from the other shareholders of WCP.

(i) Income Taxes
Provisions for current income taxes were ¥125,137 million, provisions for deferred income taxes were ¥47,450
million, and additional tax expenses of ¥26,450 million were recorded as income taxes - correction.

Current

income taxes increased by ¥35,588 million year-on-year, mainly as a result of loss carryforwards under the BB
Mobile income taxes under consolidated tax return7 having been fully utilized in the previous fiscal year.

The

income taxes - correction were recorded in response to a correction and ruling notice received by Yahoo Japan
Corporation (hereafter “Yahoo Japan”) from the Tokyo Regional Taxation Bureau on June 30, 2010, regarding3

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the nine-month period ended December 31, 2010Yahoo Japan’s tax accounting treatment.

Refer to page 31, “3. Consolidated Financial Statements – Notes

Consolidated Statements of Income – 5. Income taxes – corrections (For the nine-month period ended December 31,2010)” for details. Yahoo Japan paid the relevant additional income taxes on July 1, 2010.
Note:
7. BB Mobile and its wholly owned subsidiaries including SOFTBANK MOBILE adopt the consolidation taxation system.

(j) Minority Interests in Net Income
Minority interests in net income totaled ¥43,268 million, primarily from profit recorded at Yahoo Japan and at SB
Asia Infrastructure Fund L.P., which became a consolidated subsidiary of the Company during the three-month
period from April 1 to June 30, 2010 (hereafter “the first quarter”).

(k) Net Income
As a result of the above, net income totaled ¥142,299 million, for a ¥47,438 million (50.0%) year-on-year increase.

The Group is strengthening its cash-flow-oriented management, and aims to reduce its ¥1,939,520 million of net
interest-bearing debt8 as of the end of March 2009 by half over three years (by the end of March 2012) and to zero
over six years (by the end of March 2015). To achieve this, the Group plans to generate an aggregate total of atleast ¥1 trillion in free cash flow9 over the three years from fiscal 2009 (period from April 1, 2009, to March 31,2012).

As a result of the strong performance of the Mobile Communications segment, free cash flow totaling¥364,264 million was recorded during the period.

Net interest-bearing debt at the end of the period was¥1,429,929 million.
Notes:
8. Net interest-bearing debt: interest-bearing debt - cash position.
Interest-bearing debt: short-term borrowings + commercial paper + current portion of corporate bonds + corporate bonds +long-term borrowings. Lease obligations are excluded.
This also excludes the corporate bonds (WBS Class B2 Funding Notes, issued by J-WBS Funding K.K.) with a face valueof ¥27,000 million acquired by the Company during the previous fiscal year that were issued under the whole businesssecuritization financing scheme associated with the acquisition of Vodafone K.K.
Cash position: cash and cash deposits + marketable securities recorded as current assets (excludes Yahoo! Inc. shares heldby a subsidiary of the Company in the United States of America).
9. Free cash flow: cash flows from operating activities + cash flows from investing activities.

4

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

2. Results by Business Segment
The “Accounting Standard for Disclosures about Segments of an Enterprise and Related Information” (ASBJ
Statement No.17, March 27, 2009) and the “Guidance on the Accounting Standard for Disclosures about Segments ofan Enterprise and Related Information” (ASBJ Guidance No.20, May 21, 2008) are being applied from the firstquarter. Hereafter the accounting standard and the guidance on the accounting standard applied in the same periodof the previous fiscal year are referred to as the “former standard”, while those applied from the first quarter arereferred to as the “new standard.”
Net sales and operating income for the period are compared on a year-on-year basis, based on the new standard.

Note:
Principal operational data is shown on pages 9-10 “(Reference 1: Principal Operational Data).”(a) Mobile Communications(Millions of yen)

Nine-month Period Ended
December 31, 2009
(Former standard)(a)(New standard)(b)Nine-month
Period Ended
December 31, 2010
(New standard)(c)(Reference)
Change(d)=(c)-(b)(Reference)
Change %(d)÷(b)Net sales

1,264,254

1,264,257

1,458,620

194,363

15.4%

Operatingincome215,112215,109314,486

99,37746.2%

10・ 2,523,300 cumulative net subscriber additions
・ ARPU

11

12

for the third quarterfor the period

was ¥4,310, a ¥110 year-on-year13 increase. Out of this data ARPU

amounted to ¥2,330, a ¥270 year-on-year increase
Notes:
10. The number of net subscriber additions includes prepaid mobile phones and communication module service subscribers.
Net subscriber additions for communication modules for the period totaled 553,600, which included an increase of 189,600
in the third quarter.
11. Average Revenue Per User (rounded to the nearest ¥10).
Revenue and number of mobile phone subscribers include prepaid mobile phones and communication module service
subscribers.
For the Mobile Communications segment, the term “ARPU” used alone indicates the total of the basic monthly charge plus
voice ARPU plus data ARPU.
12. The three-month period ended December 31, 2010 (from October 1 to December 31, 2010).
13. Compared to the three-month period ended December 31, 2009 (from October 1 to December 31, 2009).

<Analysis of Results>
The segment’s net sales increased by ¥194,363 million (15.4%) year-on-year to ¥1,458,620 million.

The revenue

growth was driven by continued strong upward trend of mobile phone subscribers combined with increases in
ARPU and the number of mobile handsets shipped. Operating income increased by ¥99,377 million (46.2%)
year-on-year to ¥314,486 million.

5

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

<Number of Mobile Phone Subscribers>
Net subscriber additions (new subscribers minus cancellations) for the period totaled 2,523,300, of which 925,700
net subscribers were added in the third quarter. This increase was primarily the result of strong sales of iPhone14.
As a result, the cumulative number of subscribers at the end of the period stood at 24,399,90015, raising
SOFTBANK MOBILE’s cumulative subscriber share by 1.2 of a percentage point year-on-year, to 20.8%16.
Notes:
14. iPhone is a trademark of Apple Inc.
The iPhone trademark is used under license from Aiphone K.K.
15. The number of cumulative subscribers includes prepaid mobile phones and communication module service subscribers.
The cumulative number of communication module service subscribers at the end of the period was 1,091,100.
16. Calculated by the Company based on Telecommunications Carriers Association statistical data.

<ARPU>
ARPU for the third quarter rose ¥110 year-on-year to ¥4,310. Out of this the sum of the basic monthly charge andvoice ARPU declined ¥170 year-on-year to ¥1,980, reflecting an increase in devices like PhotoVision that do nothave voice communication functionality, and revised access charges between carriers. On the other hand, data
ARPU rose ¥270 year-on-year to ¥2,330.

This was mainly the result of an increase in the number ofdata-intensive iPhone subscribers, combined with the termination of the non-data-intensive 2G service in March
2010.

<Churn Rate and Upgrade Rate>
The churn rate17 for the third quarter was 0.91%, which was 0.25 of a percentage point lower year-on-year.

This

was primarily because the termination of the 2G service ceased to be a factor causing an increase in the churn rate,
combined with a decline in the churn rate of customers who have completed their installment handset payments.
The upgrade rate17 for the third quarter was 1.43%, which was 0.1 of a percentage point lower year-on-year.

The

number of upgrades to iPhone 4 increased but this impact was outweighed by the fact that the termination of the 2G
service no longer had an increasing impact.
Note:
17. Calculation includes prepaid mobile phones and communication module service subscribers in the number of subscribers,
churn and upgrades respectively.

<Average Acquisition Cost per Subscriber>
The average acquisition cost per subscriber18 for the third quarter rose ¥400 year-on-year to ¥37,800.
Note:
18. Average commission paid to sales agents per new subscription.
New subscriptions include prepaid mobile phones and communication modules.

6

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the nine-month period ended December 31, 2010(b) Broadband Infrastructure(Millions of yen)

Nine-month Period Ended
December 31, 2009
(Former standard)(a)(New standard)(b)Nine-month
Period Ended
December 31,
2010(New standard)(c)(Reference)
Change(d)=(c)-(b)(Reference)
Change %(d)÷(b)Net sales

155,328

154,353

144,485(9,867)(6.4%)

Operatingincome39,40939,11533,525(5,590)(14.3%)<Overview of Operations>
The segment’s net sales decreased by ¥9,867 million (6.4%) year-on-year to ¥144,485 million.

This was mainly

because of the continued decreasing trend in revenue, on a decline in the number of charged lines19 for the ADSL
service. Operating income decreased by ¥5,590 million (14.3%) year-on-year to ¥33,525 million.

In addition to20

the decrease in net sales, customer acquisition for Yahoo! BB hikari with FLET'S led to an increase in sales-related
expenses.
Net subscriber additions for Yahoo! BB hikari with FLET'S for the period totaled 546,000, which included anincrease of 208,000 in the third quarter, bringing the cumulative number of contracts at the end of the period to783,000.

Combined with installed lines21 for the ADSL service, this brought the total number of users to

4,074,000.
Notes:
19. Number of installed lines excluding customers whose basic monthly charge is free under promotion campaigns or otherpromotional initiatives.
20. A broadband connection service that combines the Internet connection service Yahoo! BB and the FLET’S HIKARI
fiber-optic connection provided by NIPPON TELEGRAPH AND TELEPHONE EAST CORPORATION (“NTT East”)
and NIPPON TELEGRAPH AND TELEPHONE WEST CORPORATION (“NTT West”). FLET’S and FLET’S
HIKARI are registered trademarks of NTT East and NTT West.
21. Number of lines for which connection construction for ADSL line at central office of NTT East or NTT West is complete.

7

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the nine-month period ended December 31, 2010(c) Fixed-line Telecommunications(Millions of yen)

Nine-month Period Ended
December 31, 2009
(Former standard)(a)(New standard)(b)Nine-month
Period Ended
December 31, 2010
(New standard)(c)(Reference)
Change(d)=(c)-(b)(Reference)
Change %(d)÷(b)Net sales

258,687

258,687

263,273

4,586

1.8%

Operatingincome14,344

14,40023,889

9,488

65.9%

<Overview of Operations>
The segment’s net sales increased by ¥4,586 million (1.8%) year-on-year to ¥263,273 million. Net sales tothird-parties decreased, primarily as a result of the continued decrease in revenue from relay connection voiceservices such as MYLINE, despite the increase in revenue from the OTOKU Line, a direct connection voice service.
On the other hand, inter-segment sales increased, due to a growth in telecom service revenue from network
provision to the Group telecommunication companies such as SOFTBANK MOBILE, and contributed to theoverall segment’s revenue growth.

Operating income increased by ¥9,488 million (65.9%) to ¥23,889 million.

This was mainly due to an increase in net sales, combined with a decrease in lease expenses on equipment for theOTOKU Line service.

(d) Internet Culture(Millions of yen)

Nine-month Period Ended
December 31, 2009
(Former standard)(a)(New standard)(b)Nine-month
Period Ended
December 31, 2010
(New standard)(c)(Reference)
Change(d)=(c)-(b)(Reference)
Change %(d)÷(b)Net sales

199,862

199,791

210,166

10,374

5.2%

Operatingincome98,526

99,665

110,669

11,003

11.0%<Overview of Operations>
The segment’s net sales increased by ¥10,374 million (5.2%) year-on-year to ¥210,166 million. Net sales at
Yahoo Japan grew mainly on an increase in listing and display advertising. Operating income increased by¥11,003 million (11.0%) year-on-year to ¥110,669 million. This was primarily a result of the growth in net sales,in addition to a decrease in communications expenses in connection with the reduction in data center related
expenses.

8

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

(Reference 1: Principal Operational Data）(a) Mobile Communications
SoftBank mobile phones
Fiscal Year Ending
March 31, 2011

Fiscal Year Ended March 31, 2010
Q1

Q2

Q3

Q4

Full Year

Q1

Q2

Q3
(Thousands)

Net additions1

323.3

360.7

350.3

209.4

1,243.7

696.6

901.0

925.7

(Postpaid)

359.5

394.9

383.3

506.8

1,644.5

645.3

833.6

865.4

(Prepaid)(36.2)(34.2)(33.0)(297.4)(400.8)

51.3

67.4

60.3

Market share2 (%)
Cumulative
subscribers1
（3G）
（2G）
Market share2
(%)

32.3

31.5

35.6

13.4

26.5

45.4

53.5

55.8

20,956.2
19,455.0
1,501.2

21,316.9
20,237.7
1,079.2

21,667.2
20,885.4
781.8

21,876.6
21,876.6-

22,573.2
22,573.2-

23,474.2
23,474.2-

24,399.9
24,399.9
-

19.3

19.4

19.6

19.5

19.9

20.3

20.8

(Yen per month)

ARPU3(Basic monthly
charge + voice)

4,030

4,150

4,200

3,890

4,070

4,290

4,300

4,310

2,150

2,160

2,150

1,750

2,050

2,030

2,020

1,980

(Data)

1,880

1,990

2,060

2,140

2,020

2,250

2,290

2,330
(Yen)

Averageacquisition cost
per subscriber4

50,10035,90037,40040,20040,50037,20037,50037,800(% per month)

Churn rate5(3G postpaid)

1.05

1.24

1.16

2.01

1.37

1.02

0.96

0.91

0.87

1.07

0.99

1.28

1.06

0.99

0.92

0.86

5

1.78
1.71
1.18
1.67
1.43
Upgrade rate
1.73
1.81
1.53
Notes:
1. Includes the number of prepaid mobile phones and communication module service subscribers.
2. Calculated by the Company based on Telecommunications Carriers Association statistical data.
3. Average Revenue Per User (rounded to the nearest ¥10).
Revenue and number of mobile phone subscribers include prepaid mobile phones and communication modules.
For the Mobile Communications segment, the term “ARPU” used alone indicates the total of the basic monthly charge plus
voice ARPU plus data ARPU.
4. Average commissions paid to sales agents per new subscription.
New subscriptions include prepaid mobile phones and communication modules.
5. Calculation includes prepaid mobile phones and communication module service subscribers in the number of subscribers,
churn and upgrades respectively.

9

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the nine-month period ended December 31, 2010(b) Broadband Infrastructure
Yahoo! BB ADSL

(Thousands)

Fiscal Year Ending
March 31, 2011

Fiscal Year Ended March 31, 2010
Q1

Q2

Q3

Installed lines6

4,158

4,040

3,908

7

3,769

3,657

3,533

Charged lines

Q4

Full Year

Q1

Q2

Q3

3,769

3,609

3,457

3,291

3,389

3,221

3,066

2,903

(Yen per month)

Average user
payment per
charged line8

4,260

4,260

4,250

4,200

4,210

4,200

4,160
(% per month)

2.26
2.32
2.47
Churn rate9
2.12
1.80
1.96
2.20
2.02
Notes:
6. Number of lines for which connection construction for ADSL line at central office of NTT East or NTT West is complete.
7. Number of installed lines excluding customers whose basic monthly charge is free under campaigns or other promotional
initiatives.
8. Rounded to the nearest ¥10.
9. Average ratio of customer lines with a history of payment, for which a cancellation application has been filed during therelevant period.

(c) Fixed-line TelecommunicationsOTOKU Line

(Thousands)

Fiscal Year Ending
March 31, 2011

Fiscal Year Ended March 31, 2010

Lines

Q1

Q2

Q3

Q4

1,631

1,652

1,657

Full Year
1,669

Q1

Q2

Q3

1,668

1,667

1,662

(Yen per month)
10

ARPU
6,390
6,280
6,450
6,830
Note:
10. Average Revenue Per User: average revenue per line (rounded to the nearest ¥10).

6,610

6,570

6,610

(d) Internet Culture(Millions)Fiscal Year Ending
March 31, 2011

Fiscal Year Ended March 31, 2010
Q1

Q2

Q3

46,882

48,722

49,67146,756

209

224

226

222

22

22

Q1

Q2

Q3

Q4

46,44546,37842,779

229

189

197

Full Year

Yahoo! JAPAN
Total monthly pageviews11
Unique browsers
Yahoo! Auctions

12

Average number of
total listed items13
20
20
23
23
22
Notes:
11. Number of accesses to Yahoo! JAPAN Group websites during the last month of each quarter.
12. Number of browsers accessing a Yahoo! JAPAN service during the last month of each quarter.
13. Daily average number of items posted during the last month of each quarter.

10

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

(Reference 2: Capital Expenditure and Depreciation)14(a) Capital Expenditure (acceptance basis)（Millions of yen）

Fiscal Year Ended March 31, 2010

Fiscal Year Ending
March 31, 2011
Q2

Q1

Q2

Q3

Q4

Full Year

Q1

Q3

MobileCommunications

32,40839,14847,921

65,291

184,770

25,98765,387116,324

Broadband
Infrastructure

1,588

1,590

2,095

4,068

9,343

3,319

3,294

5,076

Fixed-line
Telecommunications

3,710

3,939

3,436

6,893

17,979

5,112

6,362

9,095

Internet Culture

1,085

1,264

1,450

2,327

6,128

1,906

1,908

2,783

Others

1,571

915

678

1,528

4,693

1,216

1,559

1,148

Consolidated total

40,36446,85855,58280,109222,915

37,54278,513

134,428(b) Depreciation (excluding amortization of goodwill)（Millions of yen）

Fiscal Year Ended March 31, 2010

Fiscal Year Ending
March 31, 2011
Q2

Q1

Q2

Q3

Q4

Full Year

Q1

42,732

43,37744,65645,569176,337

36,636

37,63640,051

4,373

4,366

4,095

4,188

17,023

4,234

3,968

3,965

8,982

8,837

8,669

8,803

35,292

9,104

9,242

9,290

Internet Culture

2,366

2,441

2,492

2,563

9,864

2,169

2,307

2,412

Others

1,353

1,243

1,401

1,427

5,426

1,445

1,482

1,608

MobileCommunications
Broadband
Infrastructure
Fixed-line
Telecommunications

Q3

Consolidated total
59,80960,26661,31462,553
243,944
53,59054,63757,329Note:
14. Capital expenditure and Depreciation for the fiscal year ended March 31, 2010 are calculated based on the new standard.
Capital expenditure and Depreciation for the e-Commerce segment for the fiscal year ended March 31, 2010 are included in“Others.”11

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

(2)

Qualitative Information regarding Consolidated Financial Position

1. Assets, Liabilities and Equity
Assets, liabilities and equity at the end of the period were as follows:(Millions of yen)

As ofDecember 31, 2010

As ofMarch 31, 2010

YoY

YoY %

Total assets

4,375,058

4,462,875(87,816)(2.0%)

Total liabilities

3,560,215

3,498,903

61,312

1.8%

Total equity

814,842963,971(149,129)(15.5%)(a) Current Assets
Current assets at the end of the period totaled ¥1,684,518 million, for a ¥9,922 million (0.6%) decline from theprevious fiscal year-end. The primary components of the change were as follows:・ Notes and accounts receivable-trade decreased by ¥138,762 million.

This was mainly because of sales of

installment sales receivables at SOFTBANK MOBILE.
・ Marketable securities increased by ¥72,087 million from the previous fiscal year-end.

This was mainly fromthe transfer of shares of Yahoo! Inc. that were previously recorded as investment securities under fixed assets, tocurrent assets at the end of the three-month period from July 1 to September 30, 2010 (hereafter “the second
quarter”). In February 2004, one of the Company’s U.S. subsidiaries entered into a loan involving a portion of
the proceeds from a forward contract under which its Yahoo! Inc. shares are expected to be delivered in August
2011. Because the subsidiary intends to deliver these shares in accordance with the settlement of the forward
contract beginning August 2011 or within one year, the corresponding shares of Yahoo! Inc. were transferred tocurrent assets.
・ Other current assets increased by ¥51,443 million from the previous fiscal year-end, primarily from increases inderivative assets and accrued revenue included in other current assets.

A derivative contract (“collartransaction”) was concluded with regard to the aforementioned shares of Yahoo! Inc. to limit the risk frommarket price fluctuations of those shares for the period until the repayment, but with the remaining period until
the repayment having become less than one year, the corresponding derivative assets were transferred to current
assets at the end of the second quarter.

(b) Fixed Assets
Fixed assets totaled ¥2,689,152 million at the end of the period, for a ¥77,331 million (2.8%) decrease from theprevious fiscal year-end. The primary components of the change were as follows:・ Investments and other assets decreased by ¥124,297 million from the previous fiscal year-end.

This was mainly

because of a ¥62,155 million decrease in investment securities from the aforementioned transfer of shares ofYahoo! Inc. to marketable securities under current assets.

In addition, derivative assets related to those sharesof Yahoo! Inc., included in other assets under investment and other assets, were transferred to other current
assets.

12

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

・ Total property and equipment increased ¥77,670 million from the previous fiscal year-end, primarily on a

¥181,990 million increase from new acquisitions of telecommunications equipment.

The increase, reflecting

the adjustment for changes of accounting standard for asset retirement obligations as of April 1, 2010, amounted
to ¥10,595 million.
・ Total intangible assets decreased ¥30,704 million from the previous fiscal year-end.

This was mainly becauseof a ¥46,026 million of decrease in goodwill, which occurred when SOFTBANK MOBILE and SOFTBANKTELECOM Corp. (hereafter “SOFTBANK TELECOM”) were acquired, resulting from regular amortization.
On the other hand, software increased by ¥28,676 million as a result of new acquisitions of telecommunications
equipment.

(c) Current Liabilities
Current liabilities at the end of the period totaled ¥1,533,002 million, for a ¥154,123 million (11.2%) increase fromthe previous fiscal year-end.

The primary components of the change were as follows:

・ Short-term borrowings increased by ¥104,587 million from the previous fiscal year-end.

This was mainly

because of an increase in the Company’s short-term borrowings, and the transfer to current liabilities of theaforementioned borrowings at one of the Company’s U.S. subsidiaries as the redemption dates came to be within
one year.

On the other hand, SOFTBANK MOBILE continued to repay borrowings procured via thesecuritization of installment sales receivables.
・ The current portion of

corporate bonds increased by ¥74,100 million from the previous fiscal year-end.

Transfers were made from corporate bonds under long-term liabilities in the amounts of ¥53,500 million for the
25th Unsecured Straight Corporate Bond, ¥60,000 million for the 27th Unsecured Straight Corporate Bond, and¥15,000 million for SOFTBANK TELECOM’s 2nd series Unsecured Straight Corporate Bond, as the redemption
dates came to be within one year. On the other hand, payments of ¥54,400 million in total were made for theredemptions of the 22nd Unsecured Straight Corporate Bond and the 24th Unsecured Straight Corporate Bond.
・ Accounts payable-other and accrued expenses declined by ¥35,349 million from the previous fiscal year-end.

This was mainly the result of a ¥75,000 million decline from the payment of additional entrustment for debt
assumption, while equipment-related payables increased, at SOFTBANK MOBILE.

(d) Long-term Liabilities
Long-term liabilities totaled ¥2,027,213 million at the end of the period, for a ¥92,811 million (4.4%) decline fromthe previous fiscal year-end.

The primary components of the change were as follows:・ Long-term borrowings decreased by ¥259,312 million.

This was mainly because SOFTBANK MOBILE’s

1ongoing repayment of its SBM loan , and the elimination in consolidation of the long-term loan receivableacquired by the Company from Vodafone Overseas Finance Limited, which was long-term debt owed by
SOFTBANK MOBILE to Vodafone Overseas Finance Limited, and the long-term debt of SOFTBANKMOBILE (refer to page 3, “1. Qualitative Information Regarding Nine-month Period Results - 1. Consolidated
Results of Operations - (g) Special Income”).

In addition, long-term borrowings at the Company’s U.S.

subsidiaries and SOFTBANK MOBILE that came to be payable within one year were transferred to current
liabilities.

On the other hand, there was an increase in the Company’s long-term borrowings.

13

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

・ Other liabilities under long-term liabilities increased ¥227,499 million from the previous fiscal year-end, mainly

from an increase in long-term accounts payable included in other liabilities under long-term liabilities. The
increase in long-term accounts payable represents the ¥200,000 million that is scheduled to be paid to Vodafone
International Holdings B.V. and Vodafone Overseas Finance Limited (hereafter “the Vodafone Group”) in April
2012, in relation to the transaction with the Vodafone Group which was carried out in December 2010 (refer topage 3, “1. Qualitative Information Regarding Nine-month Period Results - 1. Consolidated Results ofOperations - (g) Special Income”).
・ Lease obligations decreased by ¥41,918 million from the previous fiscal year-end, mostly from transfers tocurrent liabilities as leases became payable within one year, which outweighed the amount of new capital
expenditure via leases.
Note:
1. The funds procured for the acquisition of Vodafone K.K. were refinanced in November 2006 via a whole businesssecuritization program.

(e) Equity
Equity totaled ¥814,842 million at the end of the period, for a ¥149,129 million (15.5%) decline from the previous
fiscal year-end. While retained earnings increased ¥131,791 million, totaling ¥174,863 million at the end of theperiod, minority interests came to ¥243,469 million, for a decrease of ¥249,493 million.

This was primarily due

to the elimination in consolidation of ¥300,000 million of minority interests caused by the Company’s acquisitionof class 1 preferred stock series 1 issued by BB Mobile to Vodafone International Holdings B.V (refer to page 3, “1.
Qualitative Information Regarding Nine-month Period Results - 1. Consolidated Results of Operations - (g) Special
Income”).

On the other hand, there was a ¥22,851 million increase of minority interests from the change in thescope of consolidation of SB Asia Infrastructure Fund L.P. from an affiliate under equity method to a consolidated
subsidiary2.
Note:
2. This change reflects the adoption of Accounting Standards Codification Topic (ASC) 810, Consolidations formerly SFAS
No.167, Amendments to FASB Interpretation No. 46 (R) (SFAS 167) applied at certain overseas subsidiaries of the Company
in the United States of America.

2. Cash Flows
Cash flow activities during the period were as follows.
Cash and cash equivalents at the end of the period totaled ¥706,489 million, for a ¥18,808 million increase from theprevious fiscal year-end.
(Millions of yen)

Nine-month period ended

Nine-month period ended

December 31, 2009

December 31, 2010

YoY

Cash flows from operating activities

469,178

525,908

56,730Cash flows from investing activities(185,596)(161,644)

23,951(Reference) Free cash flow

283,581364,264

80,682

Cash flows from financing activities(136,457)(340,716)(204,259)

14

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the nine-month period ended December 31, 2010(a) Cash Flows from Operating Activities
Net cash provided by operating activities totaled ¥525,908 million (compared with ¥469,178 million provided in
the same period of the previous fiscal year).
Income before income taxes and minority interests totaled ¥384,607 million, while ¥165,557 million in
depreciation and amortization and ¥46,980 million in amortization of goodwill were recorded as positive non-cash
items.

Receivables-trade decreased (increase in cash flow) by ¥147,443 million mainly on sales of installment

sales receivables at SOFTBANK MOBILE.
In addition, income taxes paid of ¥185,288 million were recorded, for a ¥146,404 million year-on-year increase.
This was mainly because of increased income tax payments for BB Mobile’s income tax under consolidated tax
return and at Yahoo Japan, and includes ¥26,450 million of additional income taxes paid by Yahoo Japan on July 1,
2010, related to the correction and ruling notice it received.

(b) Cash Flows from Investing Activities
Net cash used in investing activities was ¥161,644 million (compared with ¥185,596 million used in the same
period of the previous fiscal year).
Capital expenditures, mainly at telecommunications-related businesses, resulted in outlays of ¥149,043 million forproperty and equipment and intangibles. Purchases of marketable and investment securities resulted in ¥39,401
million in cash outlays.

As a result, free cash flow (the combined net cash flows from operating activities and investing activities) was apositive ¥364,264 million (compared with a positive ¥283,581 million in the same period of the previous fiscal
year), for a year-on-year increase of ¥80,682 million.

(c) Cash Flows from Financing Activities
Net cash used in financing activities was ¥340,716 million (compared with ¥136,457 million used in the same
period of the previous fiscal year).
Outlays were recorded in the amounts of ¥348,550 million for repayments of long-term borrowings, ¥212,563
million for the repurchase of minority interests and long-term borrowings, ¥113,321 million for the repayment oflease obligations, and ¥105,508 million for the redemption of corporate bonds, ¥75,000 million for the payment
relating to the additional entrustment for debt assumption. The aforementioned outlay for repurchase of minority
interests and long-term debt represents the portion of the transaction with the Vodafone Group (refer to page 3, “1.
Qualitative Information Regarding Nine-month Period Results - 1. Consolidated Results of Operations - (g) Special
Income”), carried out in December 2010, which was paid to the Vodafone Group in the third quarter in addition toacquisition-related expenses. On the other hand, long-term borrowings raised ¥197,900 million and corporatebond issues generated ¥179,182 million, in addition to a positive ¥90,275 million recorded as a net increase in
short-term borrowings.

15

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

(Reference: Major Financing Activities)
The major financing activities in the period were as follows:
Item
Bond issuances

Company NameSOFTBANK CORP.

Details
31st Unsecured Straight Corporate
Bond

32nd Unsecured Straight Corporate
Bond

33rd Unsecured Straight Corporate
Bond(Fukuoka SoftBank HAWKS Bond)

Bond redemption

Issue date: June 2, 2010
Redemption date: May 31, 2013
Procured amount: ¥25,000 million
Interest rate: 1.17%/year
Use: redemption of bonds which will
mature by the end of June 2011
Issue date: June 2, 2010
Redemption date: June 2, 2015
Procured amount: ¥25,000 million
Interest rate: 1.67%/year
Use: redemption of bonds which will
mature by the end of June 2011
Issue date: September 17, 2010
Redemption date: September 17, 2013
Procured amount: ¥130,000 million
Interest rate: 1.24%/year
Use: redemption of bonds which will
mature by the end of June 2011
Redemption date: April 26, 2010
Redeemed amount: ¥20,000 million

SOFTBANK MOBILE Corp.

24th Unsecured Straight Corporate
Bond(Fukuoka SoftBank HAWKS Bond)
22nd Unsecured Straight Corporate
Bond
Euro-denominated Senior Notes Due
2013(redeemed before maturity)
Procurement of funds totaling ¥10,000
million accompanying securitizationof mobile handsets installment salesreceivables
Repayment of ¥147,227 million

SOFTBANK CORP.

Increase of ¥273,300 million

Mainly increase of long-term borrowings

SOFTBANK MOBILE Corp.

Decrease of ¥179,542 million

Repayment of funds raised via the wholebusiness securitization financing scheme

Yahoo Japan Corporation

Decrease of ¥10,000 million

Capitalexpenditure byfinancial lease
Additional
entrustment for
debt assumption

SOFTBANK MOBILE Corp.
etc.

New capital expenditure via leases

Funds procured during the nine-month period ended
December 31, 2010: ¥54,667 million

SOFTBANK MOBILE Corp.

Payment of ¥75,000 million

Acquisition ofpreferred stocketc., issued by theCompany’s
consolidated
subsidiary andheld by the
Vodafone GroupSOFTBANK CORP.

Payment of ¥212,500 million(refer to page 3, “1. Qualitative
Information Regarding Nine-month
Period Results - 1. Consolidated
Results of Operations - (g) Special
Income”)

Bonds in scope:
Former Vodafone K.K. corporate bonds
3rd Unsecured Straight Corporate Bond ¥25,000 million(redeemed on August 19, 2010)
5th Unsecured Straight Corporate Bond ¥25,000 million(redeemed on August 25, 2010)
7th Unsecured Straight Corporate Bond ¥25,000 million(redeemed on September 22, 2010)
Acquisition cost: ¥412,500 million in total
Payment date:
December 10, 2010 ¥212,500 million
April 2012 (tentative) ¥200,000 million

Securitization ofreceivables(recorded as
borrowings)
Repayment of
securitization ofreceivables
Increase or
decrease in debt
(excluding
securitization ofreceivables)

SOFTBANK CORP.

Summary

SOFTBANK MOBILE Corp.

16

Redemption date: September 14, 2010
Redeemed amount: ¥34,400 million
Redemption date: October 15, 2010
Redeemed amount: ¥47,269 million(€352 million)
Procurement date: June 29, 2010
Redemption method: monthly pass-through repayment
Use: capital expenditure and repayment of funds
procured via the whole business securitization program
Repayment of funds procured via securitization ofmobile handsets installment sales receivables

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the nine-month period ended December 31, 2010(3)

Earnings Forecasts

The Group had previously forecasted consolidated operating income of ¥500,000 million for the fiscal year ending
March 31, 2011. The Group has upwardly revised the forecast of consolidated operating income for the fiscal year
ending March 31, 2011 to ¥600,000 million as of the Consolidated Financial Report for the nine-month period ended
December 31, 2010 (issued on February 3, 2011), mainly reflecting the strong earnings momentum at the Mobile
Communications segment.
Consolidated net sales are subject to, among others, rapid changes in the Group’s main markets, the Internet and thetelecommunications industry. There is, therefore, a possibility that new sales initiatives will be introduced in the
future in order to flexibly respond to changes in the market situation, making it difficult to publicly disclose a forecast
for consolidated net sales.
Forecasts for consolidated ordinary income and consolidated net income are also difficult to publicly disclose because
the performance of the Company’s various holdings of investment securities and investments via funds is subject tochanges in the market environment and other factors, making equity in earnings under equity method and valuation gain
and loss on investment securities difficult to project.
Refer to the Company’s press release “Upward Revision of Earnings Forecast” announced on February 3, 2011 fordetails.

17

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

(4)

The SOFTBANK GroupAs of December 31, 2010, the Group’s business segments were comprised of the following consolidated subsidiaries
and equity method companies.

The segments’ main businesses were as follows.
Consolidated
Subsidiaries

Equity Method
Non-consolidated
Subsidiaries andAffiliates

Mobile Communications

3

1

Broadband
Infrastructure

3－

Fixed-line
Telecommunications

2－

Provision of fixed-line telecommunications etc.
(Core company: SOFTBANK TELECOM Corp.1)

Internet Culture

13

10Internet-based advertising operations, e-commerce site
operations such as Yahoo! Auctions and Yahoo! Shopping,membership services, etc.
(Core company: Yahoo Japan Corporation1)

95

69

Distribution of PC software and peripherals, Fukuoka
SOFTBANK HAWKS related businesses, etc.

116

80

Business Segments

Reportablesegments

Others

Total

Main Business of Segment and Name of Business
Provision of mobile communication services and sale ofmobile phones accompanying the services etc.
(Core company: SOFTBANK MOBILE Corp.)
Provision of high-speed Internet connection service, IP
telephony service, and provision of content etc.
(Core company: SOFTBANK BB Corp.1 )Note:
1. Although SOFTBANK BB Corp., SOFTBANK TELECOM Corp. and Yahoo Japan Corporation are included as
consolidated subsidiaries in the Broadband Infrastructure, Fixed-line Telecommunications and Internet Culture segments,
respectively, SOFTBANK BB Corp., SOFTBANK TELECOM Corp. and Yahoo Japan Corporation operate multiple
businesses and therefore their operating results are allocated to multiple business segments.

［Listed Companies］
The Company’s five following subsidiaries were listed on domestic stock exchanges as of December 31, 2010:
Company NameYahoo Japan Corporation

Listed ExchangeTokyo Stock Exchange 1st section
Osaka Stock Exchange JASDAQ (Standard)

SOFTBANK TECHNOLOGY CORP.

Tokyo Stock Exchange 1st section

Vector Inc.

Osaka Stock Exchange JASDAQ (Standard)

ITmedia Inc.

Tokyo Stock Exchange Mothers

Carview Corporation

Tokyo Stock Exchange Mothers

18

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

2. Others(1) Significant Changes in Scope of Consolidation (Changes in Scope of Consolidation of Specified Subsidiaries)
There are no significant changes in scope of consolidation.
(2) Application of simple accounting methods or special accounting methods for preparation for the consolidated financial
statements
There are no applicable items.
(3) Changes in accounting principles, procedures, disclosure methods, etc., used in the presentation of the consolidated
financial statements[1] Application of accounting standard for equity method of accounting for investments“Accounting Standard for Equity Method of Accounting for Investments” (Accounting Standards Board of Japan(ASBJ) Statement No. 16, March 10, 2008) and “Practical Solution on Unification of Accounting Policies Applied to
Associates Accounted for Using the Equity Method” (Practical Issues Task Force (PITF) No. 24, March 10, 2008) wereapplied and necessary adjustments for the consolidated accounting were made for the period ended December 31, 2010.
The effect of this change is not material for the period ended December 31, 2010.
[2] Application of accounting standard for asset retirement obligations“Accounting Standard for Asset Retirement Obligations” (ASBJ Statement No. 18, March 31, 2008) and “Guidance on
Accounting Standard for Asset Retirement Obligations” (ASBJ Guidance No. 21, March 31, 2008) were applied as ofApril 1, 2010. The effect of this change in operating income and ordinary income is not material and income before
income taxes and minority interests decreased by ¥8,242 million for the period ended December 31, 2010.
1. Asset retirement obligations which are recorded in the consolidated balance sheets
The Group reasonably estimated removal costs and recorded the asset retirement obligations mainly for the corporate
head quarter building, certain data and network centers located in the rental properties under the rental contracts. Usefulperiods of 2 years to 33 years and discount rates from 0.1% to 2.3% are applied for the estimation of asset retirement
obligations.
2. Asset retirement obligations which are not recorded in the consolidated balance sheets
The Group has obligations to restore mobile phone base stations and telephone line facilities for transmission to their
original conditions under the rental contracts. However, considering business continuity, the removal of these facilities
is difficult and the possibility of executing the obligation to restore these facilities to their original conditions isextremely low, and therefore, the asset retirement obligations are not recorded at the period ended December 31, 2010.

19

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

3. Consolidated Financial Statements(1) Consolidated Balance Sheets(Millions of yen)
As ofDecember 31, 2010

As ofMarch 31, 2010

AmountAmountASSETS
Current assets:
Cash and deposits
Notes and accounts receivable - tradeMarketable securities¥708,768¥690,053

677,787

816,550

76,4304,342

Merchandise and finished products

41,42137,030

Deferred tax assets

57,10674,290

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

158,176

106,733(35,173)(34,559)

1,684,518

1,694,440

Buildings and structures

73,322

68,182

Telecommunications equipment

770,660

706,283

Telecommunications service lines

69,95072,983

Land

22,43822,401

Construction in progress

43,257

34,634

Other property and equipment

48,744

46,218

Total property and equipment

1,028,373

950,703

Goodwill

854,741

900,768

Software237,591

208,915

Other intangibles

29,34842,702

1,121,681

1,152,386

307,871370,027

120,673

152,654

127,484

164,950(16,932)
539,0972,689,152(24,238)
663,394
2,766,483

1,388

1,951

¥4,375,058¥4,462,875

Fixed assets:
Property and equipment, net:

Intangible assets, net:

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

20

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

Consolidated Balance Sheets(Millions of yen)
As ofDecember 31, 2010

As ofMarch 31, 2010

AmountAmountLIABILITIES AND EQUITYCurrent liabilities:
Accounts payable - trade
Short-term borrowings¥161,507¥158,942

542,548437,960

Commercial paper

24,500-Current portion of corporate bonds
Accounts payable - otherand accrued expenses

128,500

54,400416,059

451,408

Income taxes payable

67,390100,483

Deferred tax liabilities

13,329-Current portion of lease obligations

122,203109,768

Other current liabilities

56,96365,914

Total current liabilities

1,533,002

1,378,878

Corporate bonds

452,398

448,523

Long-term debt

Long-term liabilities:
1,022,273

1,281,586

Deferred tax liabilities

13,14730,482

Liability for retirement benefits

15,172

15,557

Allowance for point mileage

41,98047,215

Lease obligations

182,565

224,484

Other liabilities

299,675

72,175

Total long-term liabilities

2,027,213

2,120,024

Total liabilities

3,560,215

3,498,903

Common stock

188,771

188,750

Additional paid-in capital

212,639

213,068

Retained earnings

174,863

43,071

Less: Treasury stock

(237)

(225)

Total shareholders’ equity

576,036444,665

Unrealized gain on available-for-sale securities

34,44643,864

Deferred gain on derivatives under hedge accounting

11,575

14,528Foreign currency translation adjustments(51,414)(32,525)

Total valuation and translation adjustments(5,392)

25,866

729

476

Minority interests

243,469

492,963

Total equity

814,842963,971¥4,375,058¥4,462,875

Equity:Stock acquisition rights

Total liabilities and equity

21

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

(2) Consolidated Statements of Income
For the nine-month period ended December 31, 2009 and 2010

(Millions of yen)

Nine-month period ended
December 31, 2009
April 1, 2009 to
December 31, 2009
AmountNet sales
Cost of sales
Gross Profit
Selling, general and administrative expenses
Operating income
Interest income
Foreign exchange gain, net
Equity in earnings of affiliated companies

Nine-month period ended
December 31, 2010
April 1, 2010 to
December 31, 2010
Amount¥2,045,304¥2,249,901

980,954

1,027,735

1,064,349

1,222,165

698,030

740,006

366,319482,159

472

1,668

1,188

1,846

3,763

4,818

Other non-operating income
Non-operating income

4,560

6,710

9,985

15,044

Interest expense
Other non-operating expenses
Non-operating expenses

83,81080,61011,306

16,674

95,116

97,285281,187

399,917

Gain on sale of investment securities

4,149

4,907

Dilution gain from changes in equity interest
Gain on repurchase of minority interests andlong-term debt
Other special income

1,403

2,349

-

4,187

451

241

Special income

6,004

11,686

Valuation loss on investment securities
Unrealized appreciation on valuation of investments andloss on sale of investments at subsidiaries in the U.S.,
net
Loss on retirement of non current assets
Valuation loss on option
Loss on adjustment for changes of accounting standard
for asset retirement obligations
Other special losses
Special loss

2,940

3,927

551

371

47,630

1,784

-

7,841

-

7,099

1,514

5,973

52,637

26,997

234,554384,60789,548125,137-

26,45015,67147,450105,220

199,039-

185,567

34,47343,268¥94,861¥142,299

Ordinary income

Income before income taxes and minority interests
Income taxes:
Current
Correction
Deferred
Total income taxes
Income before minority interests
Minority interests in net income
Net income

22SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the nine-month period ended December 31, 2010

For the three-month period ended December 31, 2009 and 2010

(Millions of yen)Three-month period ended
December 31, 2009
October 1, 2009 to
December 31, 2009
AmountThree-month period ended
December 31, 2010
October 1, 2010 to
December 31, 2010
AmountNet sales
Cost of sales
Gross Profit¥696,028¥784,879

331,603362,239

364,425

422,640

Selling, general and administrative expenses

228,728

256,002135,697

166,637

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

165

534

422

1,588

1,479

5,902

Other non-operating income
Non-operating income

1,549

1,768

3,617

9,794

Interest expense
Other non-operating expenses
Non-operating expenses

28,46425,827

3,200

4,529

31,66530,356

107,649

146,074

Gain on sale of investment securities

121

95

Dilution gain from changes in equity interest
Unrealized loss on valuation of investments and gain onsale of investments at subsidiaries in the U.S., net
Gain on repurchase of minority interests andlong-term debt
Other special income

242

913

-

374

-

4,187

3

-

Special income

367

5,570

Valuation loss on investment securities
Unrealized loss on valuation of investments and loss onsale of investments at subsidiaries in the U.S., net
Loss on retirement of non current assets
Valuation loss on option
Other special losses
Special loss

1,652

1,241

896

-

47,192

738

-

7,841

537

3,723

50,27813,544

Income before income taxes and minority interests

57,739138,100

40,72529,436(19,064)

28,947

21,661

58,384-79,716

11,967

14,255¥24,110¥65,460

Ordinary income

Income taxes:
Current
Deferred
Total income taxes
Income before minority interests
Minority interests in net income
Net income

23

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

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

Nine-month period ended
December 31, 2009

Nine-month period ended
December 31, 2010

April 1, 2009 to
December 31, 2009

April 1, 2010 to
December 31, 2010

Cash flows from operating activities:
Income before income taxes and minority interests¥234,554¥384,607

Depreciation and amortization

181,390

165,557

Amortization of goodwill

45,804

46,980Loss on retirement of non current assets

47,6301,784

Equity in earnings of affiliated companies(3,763)(4,818)

Dilution gain from changes in equity interest, net(1,334)(2,074)

Valuation loss on investment securities
Unrealized appreciation on valuation of investments and loss onsale of investments at subsidiaries in the U.S., net

2,940

3,927

551

371

Gain on sale of marketable and investment securities, net(4,051)(4,439)Foreign exchange gain, net(1,293)(1,604)

Interest and dividend income(714)(2,076)

Interest expense

83,81080,610Decrease in receivables - trade

79,942

147,443(Decrease) increase in payables - trade(18,353)918(65,083)(36,176)

582,029

781,011

710

2,103

Interest paid

(74,677)(71,918)

Income taxes paid

(38,883)(185,288)

469,178

525,908

Adjustments for:

Changes in operating assets, and liabilities

Other, net
Sub-totalInterest and dividends received

Net cash provided by operating activities- Continued -24

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

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

Nine-month period ended
December 31, 2009

Nine-month period ended
December 31, 2010

April 1, 2009 to
December 31, 2009

April 1, 2010 to
December 31, 2010

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¥ (183,048)¥ (149,043)(24,827)(39,401)

17,38025,123Acquisition of interests in subsidiaries newly consolidated,
net of cash acquired

(40)

(701)

Other, net

4,939

2,378

(185,596)(161,644)(121,645)

90,275-24,500

Proceeds from long-term debt

261,808

197,900

Repayment of long-term debt

(352,398)(348,550)

Proceeds from issuance of bonds

153,603179,182

Redemption of bonds(51,673)(105,508)

Exercise of warrants

2,105

41

Proceeds from issuance of shares to minority shareholders

1,095

1,430

Cash dividends paid

(2,673)(5,371)

Cash dividends paid to minority shareholders
Proceeds from sale and lease back of equipment newly acquired(4,615)(14,917)55,441

54,667

Repayment of lease obligations(69,589)(113,321)

Payments for additional entrustment for debt assumption-(75,000)

Payments for repurchase of minority interests and long-tem debt-

(212,563)(7,915)(13,481)(136,457)(340,716)(808)(4,756)

146,316

18,791

126

1,919

(807)

(64)

-

(1,837)457,644687,681¥603,279¥706,489

Net cash used in investing activities
Cash flows from financing activities:(Decrease) increase in short-term borrowings, net
Increase in commercial paper, net

Other, net
Net cash used in financing activities
Effect of exchange rate changes
on cash and cash equivalents
Net increase in cash and cash equivalents
Increase in cash and cash equivalents due to newly consolidated
subsidiaries
Decrease in cash and cash equivalents due to exclusion ofpreviously consolidated subsidiaries
Decrease in cash and cash equivalents resulting from corporate
separation
Cash and cash equivalents, beginning of the period
Cash and cash equivalents, end of the period

25

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the nine-month period ended December 31, 2010(4) Significant Doubt about Going Concern Assumption
There are no applicable items for the nine-month period ended December 31, 2010.

(5) Significant Changes in Shareholder’s Equity
There are no applicable items for the nine-month period ended December 31, 2010.

(6) Basis of Presentation of Consolidated Financial Statements(Items described in “2. Others (3) Changes in accounting principles, procedures, disclosure methods, etc., used in thepresentation of the consolidated financial statements” on page 19 are excluded.)
1. Changes in scope of consolidation(1) Changes in scope of consolidation for the nine-month period ended December 31, 2010 are as follows:<Increase>
11 companies
Significant changes:
SB Asia Infrastructure Fund L.P. and its 6 consolidated subsidiaries<Decrease>
4 companies(2) The number of consolidated subsidiaries after the changes:
116 companies
The Company owns 100% shares issued by WILLCOM, Inc. However, WILLCOM, Inc. is in the process ofreorganization under the Corporate Reorganization Act and the Company does not have effective control over WILLCOM,
Inc. Therefore, WILLCOM, Inc. is not treated as a subsidiary.
2. Changes in scope of equity method(1) Changes in scope of equity method are as follows:<Increase>
22 companies
Significant changes:
SB Asia Infrastructure Fund L.P.’s 12 affiliates under equity method
USTREAM, Inc.
Wireless City Planning Inc.
<Decrease>
6 companies
Significant changes:
SB Asia Infrastructure Fund L.P.
(2) The number of non-consolidated subsidiaries and affiliated companies under the equity method after the changes:
Non-consolidated subsidiaries under the equity method: 5 companies
Affiliated companies under the equity method: 75 companies(Changes in accounting principles and procedures)
Effective April 1, 2010, certain subsidiaries of the Company that apply generally accepted accounting principles in the
United States of America adopted Accounting Standards Codification (ASC) 810, Consolidations, formerly SFAS No. 167,
Amendments to FASB Interpretation No. 46(R) (SFAS 167).
As a result of the application of the accounting standard, the scope of SB Asia Infrastructure Fund L.P. changed from anaffiliate under equity method to a consolidated subsidiary.
The effect of this change is not material for the period ended December 31, 2010.

26

SOFTBANK CORP.CONSOLIDATED FINANCIAL REPORTFor the nine-month period ended December 31, 2010(7) Notes(Consolidated Balance Sheets)
1. Accumulated depreciation of property and equipment
As of March 31, 2010

As of December 31, 2010
1,129,953

1,048,584

million yen

million yen

2. Additional entrustment for debt assumption of bonds (As of March 31, 2010)
SOFTBANK MOBILE has entrusted cash for the repayment of the straight bonds listed in the following table based on debt
assumption agreements with a financial institution. The bonds are derecognized in the Company’s consolidated balance
sheets.
The trust had collateralized debt obligations (“CDO”) issued by a Cayman Islands based Special-Purpose Company (“SPC”).
The SPC contracted a credit default swap agreement secured by debt securities (corporate bonds), which referred to a certain
portion of the portfolio consisting of 160 referenced entities. Since defaults (credit events under the agreement) of more than acertain number of referenced entities occurred, ¥75,000 million in total was reduced from the redemption amount of the CDO
in April 2009 and an additional entrustment was required for the reduced amount.
As a result, for the amount required as the additional entrustment of ¥75,000 million, a long term accounts payable wasrecognized as a recognized subsequent event (Type I subsequent event) and included in “Other liabilities” of long-term
liabilities in the consolidated balance sheets, and it was recorded as special loss in the consolidated statements of income for theyear ended March 31, 2009.
As of March 31, 2010, since the maturity for the additional entrustment was within one year, the accounts payable was included
in “Accounts payable-other and accrued expenses” of current liabilities in the consolidated balance sheets.
Mizuho Corporate Bank, Ltd and the Company set up a credit line facility contract in order to support the repayments of thebonds issued by SOFTBANK MOBILE.
As of March 31, 2010
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

3. Secured loans(1) Assets pledged as collateral for secured liabilities[1] For short-term borrowings and long-term debt
Assets pledged as collateral and secured liabilities by consolidated subsidiaries are as follows:
As of December 31, 2010

As of March 31, 2010

Assets pledged as collateral:
Cash and deposits

188,806

213,098

Notes and accounts receivable - trade284,639273,231

Marketable securities1

71,907-

Buildings and structures

11,71812,133

Telecommunications equipment

243,035

182,945

Telecommunications service lines

76

86

10,690

10,633-81,701

9,649

17,225Land
Investment securities and investments in unconsolidated
subsidiaries and affiliated companies
Investments and other assets - other assets
Total

820,522

27

million yen

791,054

million yen

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

As of December 31, 2010

As of March 31, 2010

Secured liabilities:
Accounts payable - trade

817

1,674

Short-term borrowings

91,176

1,928

2Long - term debt

1,086,707

807,160

Total

899,153

million yen

1,090,310

million yen

Notes:
1. Shares of Yahoo! Inc. placed as collateral for a loan procured by a subsidiary of the Company in the United States ofAmerica were transferred to “Marketable securities” since the maturity for the loan was within one year. Theseshares were recorded as “Investment securities and investments in unconsolidated subsidiaries and affiliatedcompanies” as of March 30, 2010.
2. Consolidated subsidiaries shares owned by SOFTBANK MOBILE, SOFTBANK MOBILE shares owned by BB
Mobile Corp. and BB Mobile Corp. shares owned by Mobiletech Corporation are pledged as collateral for long-term
debt (totaled to ¥986,702 million and ¥807,160 million, as of March 31, 2010 and December 31, 2010, respectively)
resulting from the acquisition of SOFTBANK MOBILE, in addition to the assets pledged as collateral above.
[2] For borrowings of investee
Assets pledged as collateral for third party’s liability are as follows:
As of December 31, 2010
Assets pledged as collateral:
Investment securities and investments in unconsolidated
subsidiaries and affiliated companies-

million yen

As of March 31, 2010

2,000

million yen(2) Borrowings by securitization of receivables[1] The securitization of installment sales receivable of SOFTBANK MOBILE
Cash proceeds through the securitization of installment sales receivables of SOFTBANK MOBILE, excluding that
qualify for derecognition criteria of a financial asset, were included in “Short-term borrowings” (¥175,359 million and¥80,905 million, as of March 31, 2010 and December31, 2010, respectively) and “Long-term debt” (¥44,454 millionand ¥1,681 million, as of March 31, 2010 and December 31, 2010, respectively). The amounts of the senior portion of
the securitized installment sales receivables (¥219,813 million and ¥82,586 million, as of March 31, 2010 and
December 31, 2010, respectively) were included in “Notes and account receivable-trade”, along with the subordinatedportion held by the SOFTBANK MOBILE. The trustee raised the funds through asset backed loans based on thereceivables.
[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* to a
SPC (a consolidated subsidiary), and the SPC raised the funds through asset backed loans based on the receivables(¥10,504 million and ¥4,585 million, as of March 31, 2010 and December 31, 2010, respectively) from a financial
institution. Cash proceeds through the asset backed loans are included in the “Short-term borrowings” (¥6,660 millionand ¥4,585 million, as of March 31, 2010 and December 31, 2010, respectively) and “Long-term debt” (¥3,844 million,
as of March 31, 2010).
Note:* A certain portion of present and future (through March 2012) receivables realized through the ADSL services
provided by SOFTBANK BB.

28

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

(3) Borrowings by security lending agreements
Cash receipts as collateral from financial institutions, to whom the Company lent a portion of shares in its subsidiary under
security lending agreements are presented as follows:
As of December 31, 2010
Short-term borrowings

114,000

million yen

As of March 31, 2010
114,000

million yen(4) Others
A consolidated subsidiary purchased assets by installments, and the assets of which ownership was not transferred to theconsolidated subsidiary and its installment payables are as follows:
As of December 31, 2010

As of March 31, 2010

Assets of which ownership is not transferred:60

35

44,64016,710Construction in progress

1,082

1,538

Software

10,917

4,755

150

12

Buildings and structures
Telecommunications equipment

Other intangibles

240

348

Investments and other assets - other assets
Total

57,201

million yen

As of December 31, 2010

23,292

million yen

As of March 31, 2010

Installment payables:
Accounts payable - other and accrued expenses

8,671

4,148

Long term liability - other liabilities
Total

53,652

20,741

62,324

million yen

24,889million yen

4. Guarantee obligation (As of December 31, 2010)
The Company has entered into a sponsor agreement with WILLCOM, Inc. Under the sponsor agreement, the Company
provides necessary financial support to WILLCOM, Inc. for business operation and execution of the rehabilitation plan. The
agreement is effective until WILLCOM, Inc. completes the payment of its reorganization clams and reorganization security
interests amounting to ¥41,000 million.

29

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

(Consolidated Statements of Income)For the nine-month period ended December 31, 2009 and 2010

1.

(From April 1 to December 31, 2009 and 2010)

Selling, general and administrative expenses
Nine-month period ended
December 31, 2009
330,509 million yen

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

11,390Nine-month period ended
December 31, 2010
377,679 million yen
9,994

2. Unrealized appreciation on valuation of investments and loss on sale of investments at subsidiaries in the United Statesof America, net
Certain subsidiaries of the Company in the United States of America qualify as investment companies under the provisions set
forth in Financial Services – Investment Companies of the FASB Accounting Standards Codification Topic 946(ASC 946) andaccount for investment securities in accordance with ASC 946.
The net changes in the fair value of the investments are recorded as unrealized appreciation on valuation of investments andloss on sale of investments at subsidiaries in the U.S., net and loss on sale of investments, computed based on the acquisition
cost, is also included in this account. The unrealized appreciation on valuation of investments and loss on sale of investments
included in unrealized appreciation on valuation of investments and loss on sale of investments at subsidiaries in the U.S., net in
the consolidated statements of income are as follows:
Nine-month period ended
December 31, 2009
Unrealized appreciation on valuation of investment
at subsidiaries in the U.S.,net
Loss on sale of investments
at subsidiaries in the U.S.,net
Total

Nine-month period ended
December 31, 2010

1,074

124

(1,625)(495)(551) million yen(371)

million yen

3. Loss on retirement of non current assets (For the nine-month period ended December 31, 2009)(1) Loss on retirement of non current assets related to the termination of second-generation mobile phone services
Certain pieces of telecommunications equipment being used exclusively for second-generation (2G) mobile phone services
in the Mobile communications business are scheduled to be removed upon termination of 2G mobile phone services inMarch, 2010. These pieces of telecommunications equipment are being depreciated under the straight-line method overthe period commencing from the acquisition of Vodafone K.K. (currently SOFTBANK MOBILE) in April 2006 to thescheduled termination of 2G services in March, 2010.
In June 2009, a new frequency for the next generation mobile phone services was assigned to SOFTBANK MOBILE.
The telecommunications equipment being used for 2G mobile phone services except for the aforementioned equipment wasreviewed to determine which pieces would be used for the next generation mobile phone services and which pieces will be
removed. For the nine-month period ended December 31, 2009, loss on retirement of non current assets was recorded forthe assets to be additionally removed. As the assets to be removed upon termination of 2G services were specified, it
became possible to reasonably estimate the removal costs. These removal costs were included in loss on retirement of noncurrent assets in the consolidated statements of income for the nine-month period ended December 31, 2009.
The loss on retirement of non current assts of ¥24,338 million consists of ¥17,884 million for equipment removal cost and¥6,453 million for loss on retirement of telecommunications equipment.

30

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

(2) Loss on retirement of non current assets related to the telecommunications equipment for third-generation mobile phone
SOFTBANK MOBILE replaced certain pieces of existing wireless network equipment in order to increase efficiency of
the future capital expenditures and reduce maintenance costs. As a result, the previously used wireless network equipment
for third-generation mobile phone services was retired, and the total carrying amounts of the retired assets and the related
removal costs were recorded as loss on retirement of non current assets in the consolidated statements of income for thenine-month period ended December 31, 2009. The loss on retirement of non current assets of ¥22,555 million consists of¥13,719 million for telecommunications equipment, ¥8,726 million for software, and ¥110 million for removal costs.
4. Valuation loss on option (For the nine-month period ended December 31, 2010)
The Company has entered into agreements containing a put option and a call option for shares of Wireless City Planning
Inc., which is the Company’s affiliate under equity method, with its shareholders other than the Company. The put
option is the other shareholders’ right to sell the shares to the Company and the call option is the Company’s right to buy
the shares from the other shareholders. These options are measured at fair value and the valuation loss is recorded.
5. Income taxes – corrections (For the nine-month period ended December 31, 2010)Yahoo Japan received a correction notice from Tokyo Regional Taxation Bureau on June 30, 2010. Yahoo Japan acquired all
the shares of SOFTBANK IDC Solutions Corp. from the Company in February 2009 and merged it in March 2009. At themerger, loss carryforwards held by SOFTBANK IDC Solutions Corp. were carried and utilized by Yahoo Japan. The noticecorrects this tax treatment insisting that the treatment was to reduce Yahoo Japan’s income taxes inappropriately. Additional
income taxes of ¥ 26,450 million were recorded as income taxes - correction and paid for the period ended December 31, 2010.
Yahoo Japan submitted a request for reconsideration to the national tax tribunal, will separately bring legal suit depending on
the situation, and thoroughly argue its position on this matter.
For the three-month period ended December 31, 2009 and 2010

1.

(From October 1 to December 31, 2009 and 2010)

Selling, general and administrative expenses
Three-month period ended
December 31, 2009
106,602 million yen

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

2,523

Three-month period ended
December 31, 2010
135,932 million yen
2,547

2. Unrealized loss on valuation of investments and gain (loss) on sale of investments at subsidiaries in the United States ofAmerica, net
Certain subsidiaries of the Company in the United States of America qualify as investment companies under the provisions set
forth in Financial Services – Investment Companies of the FASB Accounting Standards Codification Topic 946(ASC 946) andaccount for investment securities in accordance with ASC 946.
The net changes in the fair value of the investments are recorded as unrealized loss on valuation of investments and gain (loss)
on sale of investments at subsidiaries in the U.S., net and gain (loss) on sale of investments, computed based on the acquisition
cost, is also included in this account. The unrealized loss on valuation of investments and gain (loss) on sale of investments
included in unrealized loss on valuation of investments and gain (loss) on sale of investments at subsidiaries in the U.S., net in
the consolidated statements of income are as follows:
Three-month period ended
December 31, 2009
Unrealized loss on valuation of investment
at subsidiaries in the U.S.,net
Gain (loss) on sale of investments
at subsidiaries in the U.S.,net
Total

31

Three-month period ended
December 31, 2010

(264)

(213)

(631)

587

(896) million yen

374

million yen

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

3. Loss on retirement of non current assets (For the three-month period ended December 31, 2009)(1) Loss on retirement of non current assets related to the termination of second-generation mobile phone services
Certain pieces of telecommunications equipment being used exclusively for second-generation (2G) mobile phone services
in the Mobile communications business are scheduled to be removed upon termination of 2G mobile phone services inMarch, 2010. These pieces of telecommunications equipment are being depreciated under the straight-line method overthe period commencing from the acquisition of Vodafone K.K. (currently SOFTBANK MOBILE) in April 2006 to thescheduled termination of 2G services in March, 2010.
In June 2009, a new frequency for the next generation mobile phone services was assigned to SOFTBANK MOBILE.
The telecommunications equipment being used for 2G mobile phone services except for the aforementioned equipment wasreviewed to determine which pieces would be used for the next generation mobile phone services and which pieces will be
removed. For the three-month period ended December 31, 2009, loss on retirement of non current assets was recorded forthe assets to be additionally removed. As the assets to be removed upon termination of 2G services were specified, it
became possible to reasonably estimate the removal costs. These removal costs were included in loss on retirement of noncurrent assets in the consolidated statements of income for the three-month period ended December 31, 2009.
The loss on retirement of non current assts of ¥24,338 million consists of ¥17,884 million for equipment removal cost and¥6,453 million for loss on retirement of telecommunications equipment.
(2) Loss on retirement of non current assets related to the telecommunications equipment for third-generation mobile phone
SOFTBANK MOBILE replaced certain pieces of existing wireless network equipment in order to increase efficiency of
the future capital expenditures and reduce maintenance costs. As a result, the previously used wireless network equipment
for third-generation mobile phone services was retired, and the total carrying amounts of the retired assets and the related
removal costs were recorded as loss on retirement of non current assets in the consolidated statements of income for thethree-month period ended December 31, 2009. The loss on retirement of non current assets of ¥22,555 million consists of¥13,719 million for telecommunications equipment, ¥8,726 million for software, and ¥110 million for removal costs.
4. Valuation loss on option (For the three-month period ended December 31, 2010)
The Company has entered into agreements containing a put option and a call option for shares of Wireless City Planning Inc.,
which is the Company’s affiliate under equity method, with its shareholders other than the Company. The put option is theother shareholders’ right to sell the shares to the Company and the call option is the Company’s right to buy the shares from theother shareholders. These options are measured at fair value and the valuation loss is recorded.

32

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

(Consolidated Statements of Cash Flows)
1.

Reconciliation of cash and cash equivalents to the amounts presented in the accompanying consolidated balance sheets
As of December 31, 2009
million yen

As of December 31, 2010

Cash and deposits

605,749

Marketable securities

4,149

76,430Time deposits with original maturity over three months(2,800)(2,608)Stocks and bonds with original maturity over three months(3,818)(76,099)

Cash and cash equivalents

603,279

million yen

708,768 million yen

706,489 million yen

2. Income taxes paid
Payment for income taxes-corrections of ¥26,450 million based on the receipt of the correction notice described in “(7) Notes(Consolidated Statements of Income) 5. Income taxes-corrections” are included in “Income taxes paid” in the consolidated
statements of cash flows for the period ended December 31, 2010.

3. 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 andequipment, and intangible assets (excluding goodwill) and long-term prepaid expenses.

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

5. Payments for additional entrustment for debt assumption
Additional entrustment of ¥75,000 million recorded as special loss in the consolidated statements of income for the year ended
March 31, 2009 reached its maturity date for the period ended December 31, 2010. The amount of payment was recorded as“Payments for additional entrustment for debt assumption” in the consolidated statements of cash flows.

6. Payments for repurchase of minority interests and long-tem debt
The Company acquired all class 1 preferred stock-series 1, stock acquisition rights issued by BB Mobile Corp. to Vodafone
International Holdings B.V. and all principal and accrued interest of a long-term loan receivable, which was recorded as“Long-term debt” in the Company’s consolidated balance sheets, from SOFTBANK MOBILE Corp. to Vodafone Overseas
Finance Limited for the total amount of ¥412,500 million during the period ended December 31, 2010. Of the total amount of
the acquisition, the amount paid during the period ended December 31, 2010 amounting to ¥212,500 million, together withrelated expenses associated with the acquisition were recorded as “Payments for repurchase of minority interest and long-tem
debt.” The remaining amount of ¥200,000 million is scheduled to be paid in April 2012.

33

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

(Segment Information)
1. Business segment information
For the nine-month period ended December 31, 2009 (From April 1, 2009 to December 31, 2009)(Millions of yen)
MobileBroadband

Fixed-line

InternetCommunications

Infrastructure

Telecommunications

Culture¥1,256,766¥152,154¥225,912¥196,419¥165,976

7,487

3,174

32,774

3,442

8,573

13,352

Total

1,264,254

155,328

258,687

199,862

174,550

Operating income (loss)¥215,112¥39,409¥14,344¥98,526¥3,790e-Commerce

OthersTotal

Elimination

Consolidated

or Corporate

Net sales(1) Customers(2) Inter-segment¥48,074 ¥2,045,304¥-¥2,045,304

68,806(68,806)-

61,426

2,114,110(68,806)

2,045,304¥(1,341)¥369,841¥(3,522)¥366,319

For the three-month period ended December 31, 2009 (From October 1, 2009 to December 31, 2009)(Millions of yen)
MobileBroadband

Fixed-line

InternetCommunications

Infrastructure

Telecommunications

Culture(1) Customers¥429,353¥48,808¥74,345¥67,467(2) Inter-segment

2,708

982

11,732

Total

432,061

49,791

Operating income (loss)¥83,336¥12,178

e-Commerce

Elimination

OthersTotal¥61,474¥14,578¥696,028¥-¥696,028

1,264

2,909

4,215

23,812(23,812)-86,077

68,73264,384

18,793

719,841(23,812)

696,028¥6,514¥34,372¥1,628¥(1,180)¥136,849¥(1,152)¥135,697

or Corporate

Consolidated

Net sales

Notes:
1. Business segments are categorized primarily based on the nature of business operations, type of services, and similarity of sales channels
which the SOFTBANK Group uses for its internal management purposes.
2. The main business segments are as follows:
Mobile Communications: Provision of mobile communication services and sale of mobile phones accompanying the services etc.
Broadband Infrastructure: Provision of ADSL and fiber-optic high-speed Internet connection service, IP telephony service, and provision ofcontents etc.
Fixed-line Telecommunications: Provision of fixed-line telecommunications service etc.
Internet Culture: Internet-based advertising operations, portal business, and auction business etc.
e-Commerce: Distribution of PC software and such hardware as PCs and peripherals, enterprise solutions, and e-commerce businesses,
including business transaction platform (B2B) and consumer-related e-commerce (B2C) etc.
Others: Technology Services, Media & Marketing, Overseas Funds, and other businesses

34

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

2. Geographic segment information
For the nine-month period ended December 31, 2009 (From April 1, 2009 to December 31, 2009)(Millions of yen)North
AmericaJapan

OthersElimination
or Corporate

Total

Consolidated

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

855

-

-

855

(855)

-

Total

2,039,580

762

5,816

2,046,159(855)

2,045,304

Operating income (loss)¥371,928¥(749)¥(407)¥370,772¥(4,452)¥366,319(2) Inter-segment

For the three-month period ended December 31, 2009 (From October 1, 2009 to December 31, 2009)(Millions of yen)North
AmericaJapan

OthersElimination
or Corporate

Total

Consolidated

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

629

-

-

629

(629)

-

Total

694,452

237

1,968

696,657(629)

696,028

Operating income (loss)¥137,717¥(278)¥(135)¥137,304¥(1,606)¥135,697(2) Inter-segment

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

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

4. Reportable segment information(Additional Information)“Accounting Standard for Disclosures about Segments of an Enterprise and Related information” (ASBJ Statement No. 17, March 27,2009) and “Guidance on Accounting Standard for Disclosures about Segments of an Enterprise and Related information” (ASBJ
Guidance No. 20, March 21, 2008) were applied for the period ended December 31, 2010.

35

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

(1) Over view of reportable segments
Reportable segments of the Company are components of an entity about which separate financial information is available and suchinformation is evaluated regularly by the board of directors in deciding how to allocate resources and in assessing performance.
The Company as a pure holding company assigns core operating companies to primary businesses. The core operating companies
develop comprehensive business strategies for the products and services and perform business activities.
Accordingly, the Company’s segments are separated based on the products and services provided by the core operating companies,
and 4 segments, “Mobile Communications,” “Broadband Infrastructure,” “Fixed-line Telecommunications,” and “Internet Culture”
are treated as reportable segments.
“Mobile Communications” business provides mobile communication services and sale of mobile phones accompanying the services.
“Broadband Infrastructure” business provides high-speed Internet connection service, IP telephony service, and contents. “Fixed-line
Telecommunications” business provides fixed-line telecommunication services. “Internet Culture” business provides Internet-based
advertising operations, e-commerce site operations such as Yahoo! Auctions and Yahoo! Shopping.
(2) Net sales and segment income or loss of reportable segments
For the nine-month period ended December 31, 2010 (From April 1, 2010 to December 31, 2010)(Millions of yen)
Reconciliations toReportable segments
Other
MobileBroadband

Fixed-line

Amounts in consolidated

1

Total

Internetconsolidated statementof income 2

Subtotalstatement of income 3

Communications

Infrastructure

Telecommunications

Culture¥1,451,042¥139,739¥221,872¥206,934¥2,019,590¥230,311¥2,249,901¥-¥2,249,901

7,578

4,746

41,4003,231

56,95624,87881,835(81,835)-

Total

1,458,620

144,485

263,273

210,166

2,076,547

255,189

2,331,737(81,835)

2,249,901

Segment income¥314,486¥33,525¥23,889¥110,669¥482,571¥8,048¥490,619¥(8,459)¥482,159

Net sales
Customers
Inter-segment

Notes:
1. The PC software and peripherals distribution business and Fukuoka SOFTBANK HAWKS related business are included in “Other.”
2. Amounts in the column “Reconciliations to consolidated statement of income” of ¥(8,459) million represents elimination of intersegment
transactions and expenses of the corporate division of the Company, which totaled ¥758 million and ¥(9,218) million, respectively.
3. Segment income is adjusted with operating income in the consolidated statements of income.

For the three-month period ended December 31, 2010 (From October 1, 2010 to December 31, 2010)(Millions of yen)
Reconciliations toReportable segments

Amounts in consolidated

Other
MobileBroadband

Fixed-line

1

Total

consolidated statement
statement of income3

Internet
Subtotalof income 2

Communications

Infrastructure

Telecommunications

Culture¥515,997¥44,906¥75,034¥71,677¥707,617¥77,262¥784,879¥-¥784,879

2,578

2,209

15,351

1,023

21,162

7,825

28,988(28,988)-

Total

518,576

47,11590,386

72,701

728,780

85,087

813,867(28,988)784,879

Segment income¥107,283¥10,825¥10,285¥39,029¥167,422¥2,134¥169,557¥(2,919)¥166,637

Net sales
Customers
Inter-segment

Notes:
1. The PC software and peripherals distribution business and Fukuoka SOFTBANK HAWKS related business are included in “Other.”
2. Amounts in the column “Reconciliations to consolidated statement of income” of ¥(2,919) million represents elimination of intersegment
transactions and expenses of the corporate division of the Company, which totaled ¥119 million and ¥(3,039) million, respectively.
3. Segment income is adjusted with operating income in the consolidated statements of income.

36

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

(Leases)
Finance lease transactions(As a lessee)(1) Finance leases in which the ownership of leased assets is transferred to lessees at the end of lease periods[1] Details of lease assets are as follows:
Tangible assets, mainly telecommunications equipment in the Mobile Communications segment.
[2] Depreciation method for lease assets
The depreciation method is the same as the method used for fixed assets possessed by each subsidiary and the Company.
(2) Finance leases in which the ownership of leased assets is not transferred to lessees at the end of lease periods[1] Details of lease assets are as follows:
Tangible assets, mainly telecommunications equipment in the Fixed-line Telecommunications segment.
[2] Depreciation method for lease assets
The straight-line method is adopted over the period of the finance leases, assuming no residual value.
Lease transactions contracted before April 1, 2008 are continuously permitted to be accounted for as operating lease transactions,and as if capitalized information is as follows:(1) Amounts equivalent to acquisition costs, accumulated depreciation, and accumulated impairment loss of leased property for eachperiod:As of December 31, 2010

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

As of March 31, 2010

136,743(77,735)

141,093(67,776)(29,882)
29,126(33,232)
40,084

million yen

46,730(11,909)-46,715(13,654)-

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

14,511(10,683)(1,078)Net leased property

2,750

Intangible assets
Acquisition cost
Accumulated depreciation
Accumulated impairment loss

8,602
(7,586)(171)

Net leased property

845

Acquisition cost
Accumulated depreciation
Accumulated impairment loss
Net leased property

206,574(109,659)(31,131)65,78333,061

million yen

million yen

34,820

million yen

16,113(10,223)(1,242)
million yen

4,647

million yen

9,070(6,669)(290)
million yen

2,110

million yen

million yen

213,007(96,579)(34,765)
81,662

million yen

Total

37

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

Current portion of long-term prepaid expenses related to a lease contract, in which the contract term and payment term are
different, in the amount of ¥670 million and ¥613 million as of March 31, 2010 and December 31, 2010 are included in“Other current assets” in the consolidated balance sheets. Long-term prepaid expenses relating to the lease contract as ofMarch 31, 2010 and December 31, 2010 were ¥25,157 million and ¥26,135 million, respectively and are included in“Other assets” of investments and other assets in the consolidated balance sheets.
(2) Obligations under finance lease at the end of each period:
As of December 31, 2010

Due within one year
Due after one year

26,191
79,431

19,31465,011
Total

Balance of allowance for impairment loss on
leased property

As of March 31, 2010

84,326

million yen

105,623

million yen

5,384

million yen

10,776

million yen(3) Lease payments, payment of the lease obligation for impaired leased property, amounts equivalent to depreciation, andinterest expense for each period:
From April 1 to December 31, 2009 and 2010
Nine-month period ended
December 31, 2009

28,345

Lease payments
Payment of the lease obligation for impaired
leased property
Depreciation expense
Interest expense

million yen

Nine-month period ended
December 31, 2010

22,722 million yen

6,600

5,391

18,376
6,669

14,946
5,264

Three-month period ended

Three-month period ended

From October 1 to December 31, 2009 and 2010
December 31, 2009

9,299

Lease payments
Payment of the lease obligation for impaired
leased property
Depreciation expense
Interest expense

million yen

December 31, 2010

7,431 million yen

2,200

1,594

6,118
2,117

4,857
1,639

(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.

38

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

(Investment in Debt and Equity Securities)
As of March 31, 2010
1. Held-to-maturity debt securities(Millions of yen)Classification

As of March 31, 2010
Carrying Amount

Fair Value

Differences

Corporate bonds¥1,499¥1,344¥(155)

Total¥1,499¥1,344¥(155)

2. Marketable and investment securities at fair value(Millions of yen)Classification

As of March 31, 2010
Carrying Amount

Investment Cost

(1)Equity securities¥101,095¥30,351¥70,743(2)Debt securities

28,957

26,673

2,283(3)Others

3,408

3,064

344

¥133,460¥60,089¥73,371

Total

Differences

Note: Investment securities held by certain subsidiaries in the United States of America which apply ASC 946 are described in
below “3. Investment securities evaluated at fair value under the provisions set forth in Financial Services– Investment
Companies of the FASB Accounting Standards Codification.”

3. Investment securities evaluated at fair value under the provisions set forth in Financial Services – Investment
Companies of the FASB Accounting Standards Codification
Certain subsidiaries of the Company in the United States of America qualify as investment companies under the provisions set
forth in Financial Services – Investment Companies of the FASB Accounting Standards Codification Topic 946(ASC 946)
and account for investment securities in accordance with ASC 946.
The carrying amounts of the investment securities at fair value recorded in the consolidated balance sheets as of March 31,
2010 were as follows:
As of March 31, 2010
15,316 million yen

Carrying amounts of investment securities at fair value:

39

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

As of December 31, 2010
1. Held-to-maturity debt securities(Millions of yen)Classification

As of December 31, 2010
Carrying Amount

Fair Value

Differences

Corporate bonds¥1,795¥1,601¥(194)

Total¥1,795¥1,601¥(194)

2. Marketable and investment securities at fair value(Millions of yen)Classification

As of December 31, 2010
Carrying Amount

Investment Cost

(1)Equity securities¥108,569¥45,325¥63,243(2)Debt securities

31,61827,1744,444(3)Others

3,024

2,957

66

¥143,212¥75,457¥67,754

Total

Differences

Note: Investment securities held by certain subsidiaries in the United States of America which apply ASC 946 are described in
below “3. Investment securities evaluated at fair value under the provisions set forth in Financial Services– Investment
Companies of the FASB Accounting Standards Codification.”

3. Investment securities evaluated at fair value under the provisions set forth in Financial Services – Investment
Companies of the FASB Accounting Standards Codification
Certain subsidiaries of the Company in the United States of America qualify as investment companies under the provisions set
forth in Financial Services – Investment Companies of the FASB Accounting Standards Codification Topic 946(ASC 946)
and account for investment securities in accordance with ASC 946.
The carrying amounts of the investment securities at fair value recorded in the consolidated balance sheets as of December 31,
2010 were as follows:
As of December 31, 2010
11,800 million yen

Carrying amounts of investment securities at fair value:40

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

(Per Share Data)
1.

Shareholders’ equity per share
As of

As of

December 31, 2010

March 31, 2010

Shareholders’ equity per share (yen)2.

¥434.74¥527.23

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

For the nine-month period ended December 31, 2009 and 2010
April 1, 2009 to

April 1, 2010 to

December 31, 2009

December 31, 2010

Net income per share – primary (yen)87.68

131.47

Net income per share – diluted (yen)84.55

126.32

Basic data for computation of the per share data

April 1, 2009 to

April 1, 2010 to

December 31, 2009

December 31, 2010

1. Net income (in millions of yen)
2. Amounts not allocated to shareholders(in millions of yen)
3. Net income allocated to common stock outstanding(in millions of yen)
4. Weighted average number of common stock outstanding
during each period (unit: thousand of shares)
5. Adjustment for net income used to calculate net income per share – diluted(in millions of yen)
– Interest expense (net of tax)
– Adjustments for net income used to calculate diluted net income
per share in consolidated subsidiaries and affiliated companies–Total6. Increase of common stock used to calculate net income per share– diluted(unit: thousand of shares)
7. Significant changes in residual securities which do not dilute net income
per share41-

94,861

142,299--

94,861

142,299

1,081,880

1,082,344

722

722

(22)

(197)

700

525

48,394

48,297-

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

For the three-month period ended December 31, 2009 and 2010
October 1, 2009 to

October 1, 2010 to

December 31, 2009

December 31, 2010

Net income per share – primary (yen)

22.28

60.48

Net income per share – diluted (yen)

21.53

58.04

Basic data for computation of the per share data

October 1, 2009 to

October 1, 2010 to

December 31, 2009

December 31, 2010

1. Net income (in millions of yen)
2. Amounts not allocated to shareholders(in millions of yen)
3. Net income allocated to common stock outstanding(in millions of yen)
4. Weighted average number of common stock outstanding
during each period (unit: thousand of shares)
5. Adjustment for net income used to calculate net income per share – diluted(in millions of yen)
– Interest expense (net of tax)
– Adjustments for net income used to calculate diluted net income
per share in consolidated subsidiaries and affiliated companies–Total6. Increase of common stock used to calculate net income per share– diluted(unit: thousand of shares)
7. Significant changes in residual securities which do not dilute net income
per share42-

24,11065,460--24,11065,4601,082,313

1,082,348

240

240

(6)

(80)

233

160

48,30348,296-