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 condensed interim consolidated
financial statements appearing in item 3 of this report.

SoftBank Corp.
Consolidated Financial Report
For the three-month period ended June 30, 2013 (IFRS)Tokyo, July 30, 2013

1.

Financial Highlights(1) Results of Operations(Percentages are shown as year-on-year changes)(Millions of yen; amounts are rounded off to the nearest million yen.)

OperatingincomeIncomebefore incometax

Net income

Net income
Total
attributable tocomprehensive
owners of theincomeparentAmountAmountAmountAmountNet sales
AmountThree-month period
endedJune 30, 2013
Three-month period
endedJune 30, 2012

%

%

%

%

%

Amount%¥881,069 21.4 ¥391,025 92.3 ¥351,016 79.1 ¥263,186 121.9 ¥238,262 125.7 ¥339,598 201.9¥725,944-¥203,316-¥195,999-¥118,581-¥105,580-¥112,505-

Basic earnings per share Diluted earnings per share
(yen)
(yen)
Three-month period
endedJune 30, 2013
Three-month period
endedJune 30, 2012¥199.96¥199.68¥96.11¥94.52(2) Financial Position(Millions of yen; amounts are rounded off to the nearest million yen.)

Total assets

Total equity

Equityattributable toowners of theparentAs of June 30, 2013

¥8,368,677¥2,281,679¥1,904,727

22.8

As of March 31, 2013

¥7,216,809¥1,930,428¥1,612,756

22.3

2.

Ratio of equity
attributable toowners of the parent
to total assets (%)

Dividends(Record date)Fiscal year ended
March 31, 2013
Fiscal year ending
March 31, 2014
Fiscal year ending
March 31, 2014
(Forecasted)

Dividends per share
Second quarter
Third quarter
Fourth quarter

First quarter

Total

(yen)

(yen)

(yen)

(yen)

(yen)

-

20.00

-

20.00

40.00

20.00

-

20.00

40.00

-

Note: Revision of forecasts on the dividends: Yes
Since sufficient profit is expected for the fiscal year ending March 31, 2014, the Company has decided dividends (Forecasted).
With regards to the execution of interim dividend, a temporary account closing will be made. The profit for the six-month ending
September 30, 2013 will be included in the distributable amount.

3. Forecasts on the Consolidated Operations Results for the Fiscal Year Ending in March 2014 (April 1, 2013 – March 31, 2014)
The Company is projecting consolidated operating income of at least ¥1 trillion under International Financial ReportingStandards (“IFRSs”) in the fiscal year ending March 31, 2014.

This includes gains of ¥253.9 billion in total resulting from there-evaluation of the existing equity interest held in GungHo Online Entertainment, Inc. and WILLCOM, Inc. at fair value whenboth companies became subsidiaries.

* Notes(1) Significant changes in scope of consolidation (changes in scope of consolidation of specified subsidiaries):No(2) Changes in accounting policies and accounting estimate[1] Changes in accounting policies required by IFRSs: No[2] Changes in accounting policies other than those in [1]: No[3] Changes in accounting estimates: Yes
Note:
Please refer to page 17 “(1) Changes in accounting policies and accounting estimates” under “2. Notes for Summary
Information” for detail.

(3) Number of shares issued (common stock)[1] Number of shares issued (including treasury stock):
As of June 30, 2013:
As of March 31, 2013:[2]

Number of treasury stock:
As of June 30, 2013:
As of March 31, 2013:[3]

1,200,660,365 shares
1,200,660,365 shares
9,064,971 shares
9,160,493 shares

Average stocks during three-month (Apr.-Jun.):As of June 30, 2013:
As of June 30, 2012:

1,191,533,038 shares
1,098,514,638 shares* Implementation status of interim review proceduresThis interim consolidated financial report is not subject to interim review procedures based on Financial Instruments andExchange Act, and the review procedures for the interim consolidated financial statements were being conducted when thisreport was disclosed.

* Note to forecasts on the consolidated results of operations and other items
The Company has adopted IFRSs from the three-month period ended June 30, 2013. For the differences between IFRSs andJapanese Generally Accepted Accounting Principles (“JGAAP”) in respect of the Company’s financial data, please refer to page51 “14. First-time adoption of IFRSs” in “(6) Notes to Condensed Interim Financial Statements” under “3. Condensed Interim
Consolidated Financial Statement” for details.
The forecast figures are estimated based on the information that the Company is able to obtain at the present point andassumptions which are deemed to be reasonable. However, actual results may be different due to various factors.
On July 30, 2013, the Company will hold an earnings results briefing for financial institutions, institutional investors, and the
media. This briefing will be broadcast live on our website in both Japanese and English (http://www.softbank.co.jp/en/irinfo/).
The Earnings Results Data Sheets will also be posted on the Company’s web site around 4 p.m. on the day of the announcement:(http://www.softbank.co.jp/en/irinfo/library/presentation/)

SoftBank Corp. Consolidated Financial Report
For the three-month period ended June 30, 2013

(Appendix)
Contents1.

2.
3.

Qualitative Information Regarding Three-month Period Results(1) Qualitative Information Regarding Consolidated Results of Operations(a) Consolidated Results of Operations(b) Results by Segment（Reference 1: Principal Operational Data）（Reference 2: Definition and Calculation Method of ARPU, etc., in SoftBank Mobile
Corp.)（Reference 3: Capital Expenditure and Depreciation）(2) Qualitative Information Regarding Consolidated Financial Position(a) Assets, Liabilities, and Equity(b) Cash Flows
Notes for Summary Information(1) Changes in accounting policies and accounting estimates
Condensed Interim Consolidated Financial Statements(1) Condensed Interim Consolidated Financial Statements of Financial Position(2) Condensed Interim Consolidated Statements of Income and Other Comprehensive
Income(3) Condensed Interim Consolidated Statements of Changes in Equity(4) Condensed Interim Consolidated Statements of Cash Flows(5) Significant Doubt About Going Concern Assumption(6) Notes to Condensed Interim Consolidated Financial Statements

1

p. 2
p. 2
p. 2
p. 6
p.10
p.11
p.12
p.13
p.13
p.15
p.17
p.17
p.18
p.18
p.20
p.22
p.24
p.25
p.25

SoftBank Corp. Consolidated Financial Report
For the three-month period ended June 30, 2013

1.

Qualitative Information Regarding Three-month Period Results

Adoption of IFRSsSoftBank Corp. has adopted the International Financial Reporting Standards (IFRSs) from the three-month period
ended June 30, 2013 (the “period;” transition date: April 1, 2012). The financial data for the three-month period
ended June 30, 2012 (“the same period of the previous fiscal year”) and the fiscal year ended March 31, 2013 (the“previous fiscal year”) are also presented based on IFRSs.
The main items to be adjusted from JGAAP in accordance with the adoption of IFRSs are as follows:
・Change in scope of consolidation‐eAccess Ltd. and Wireless City Planning Inc. that were associates under JGAAP are subsidiaries under IFRSs.
・Items related to consolidated statements of financial position‐Regarding certain securitization transactions that previously qualified for extinguishment of financial assets
under JGAAP, securitized receivables are recognized retrospectively and accompanying liabilities are recognized
as interest-bearing debt under IFRSs when they are not qualified for derecognition of financial assets under IFRSs.
‐Preferred securities issued by a subsidiary were accounted for as equity transactions and recorded as minority
interests under JGAAP.

Under IFRSs they are accounted for as under interest-bearing debt in the consolidated

statements of financial position.
・Items related to the consolidated statements of income‐Goodwill is amortized regularly under JGAAP; under IFRSs, goodwill is not amortized regularly but tested for
impairment at least once a year.
‐Commission fees paid related to the sales of mobile handsets were accounted for as costs when they occur under
JGAAP, under IFRSs the amount of commission fees expected to occur in the future is deducted from revenues.
Please refer to page 51 “14. First-time adoption of IFRSs” under “3. Condensed Interim Consolidated Financial
Statements (6) Notes to Condensed Interim Consolidated Financial Statements” for details about these adjustments.

(1) Qualitative Information Regarding Consolidated Results of Operations(a) Consolidated Results of Operations
For the period, the SoftBank Group (the “Company”) achieved consolidated net sales of ¥881,069 million, a ¥155,125
million (21.4%) increase year on year, with a ¥187,709 million (92.3%) increase in operating income to ¥391,025
million.

Net income increased ¥144,605 million (121.9%) to ¥263,186 million, and net income attributable toowners of the parent increased ¥132,682 million (125.7%) to ¥238,262 million.

Note:
Definition of terms: as used in this consolidated financial report for the three-month period ended June 30, 2013, references to the“Company,” are to SoftBank Corp. and its subsidiaries except as the context otherwise requires or indicates.

2SoftBank Corp. Consolidated Financial Report
For the three-month period ended June 30, 2013

The main factors affecting earnings for the period were as follows:(i) Net Sales
Net sales totaled ¥881,069 million, for a ¥155,125 million (21.4%) year-on-year increase.

This was mainly due

to the impact of making GungHo Online Entertainment, Inc. 1 (“GungHo”) and eAccess Ltd. 2 subsidiaries, aswell as increases in the number of subscribers and the number of units sold 3 at SoftBank Mobile Corp., which
led to increases in both service revenue (previously mainly telecommunications revenue) and product sales(previously mainly sales of handsets).

(ii) Cost of Sales
Cost of sales increased ¥70,946 million (20.6%) year on year to ¥415,792 million.

This was primarily due tothe impact of making GungHo and eAccess Ltd. subsidiaries, and a higher cost of goods in line with the increasein the number of iPhones 4 and other smartphones sold at SoftBank Mobile Corp.

SoftBank Mobile Corp.

continues to make aggressive capital expenditure that continues to increase depreciation and amortization.

Inthe same period of the previous fiscal year there was a temporary increase in depreciation and amortization as aresult of accelerated depreciation of some telecommunications equipment which was replaced in order to roll out
the 900 MHz network.

(iii) Selling, General, and Administrative Expenses
Selling, general and administrative expenses increased by ¥45,618 million (25.7%) year on year to ¥223,400
million.

This was mainly due to the effect of making GungHo and eAccess Ltd. subsidiaries, and an increase insales commissions at SoftBank Mobile Corp.

(iv) Income from Re-measurement Relating to Business Combination
Income from re-measurement relating to business combination was ¥150,120 million (not recorded in the same
period of the previous fiscal year).

This corresponds to income recognized following re-evaluation at fair valueof the Company’s equity interest of 33.63% in GungHo, already held on the date control was acquired.

Pleaserefer to page 38 “5. Business combination” for details under “3. Condensed Interim Consolidated Financial
Statements (6) Notes to Condensed Interim Consolidated Financial Statements.”

1

GungHo was made a subsidiary of the Company from an associate in April 2013. See page 38 “5. Business combination”
under “3. Condensed Interim Consolidated Financial Statements (6) Notes to Condensed Interim Consolidated Financial
Statements” for details.
2
eAccess Ltd. was made a subsidiary of the Company in January 2013.
3
4

Units sold: the total number of new subscriptions and handset upgrades
iPhone and iPad are trademarks of Apple Inc.

The iPhone trademark is used under license from Aiphone K.K.

3

SoftBank Corp. Consolidated Financial Report
For the three-month period ended June 30, 2013(v) Other Operating Loss
Other operating loss was ¥972 million (not recorded in the same period of the previous fiscal year).

(vi) Operating Income
As a result of (i) to (v), operating income totaled ¥391,025 million, for a ¥187,709 million (92.3%) year-on-yearincrease.

(vii) Finance Cost, Net
Finance cost, net deteriorated ¥29,521 million year on year to a loss of ¥38,926 million.
were as shown below.

The main components

Please refer to page 45 “11. Finance cost, net” under “3. Condensed Interim

Consolidated Financial Statements (6) Notes to Condensed Interim Consolidated Financial Statements” fordetails about derivative losses and interest income.
・Derivative losses increased ¥27,900 million year on year to ¥29,439 million.
Among the foreign currency forward contracts that the Company concluded in relation to its acquisition of
Sprint Nextel Corporation 5 (“Sprint”) in the U.S., those which were not subject to hedge accounting because
they did not satisfy the requirements for hedge accounting were recorded as losses of ¥16,950 million.
Moreover, among the convertible bonds of Sprint undertaken by the Company’s U.S. subsidiary Starburst II,
Inc. 6 on October 22, 2012, the fair value of the derivative relating to the stock acquisition rights of theconvertible bonds became zero as the acquisition of Sprint by the Company received approval at thestockholders’ meeting of Sprint on June 25, 2013.

As a result, the Company booked a loss of ¥16,356

million.
・Interest income increased ¥17,109 million year on year to ¥17,336 million.
Regarding the convertible bonds issued by Sprint, initially the expected remaining accretion period for thebond discount was 7 years based on the contract term of the bond.

However, based on the approval at thestockholders’ meeting of Sprint, the Company changed the estimate of the expected remaining term.
Accordingly, the Company recognized interest income of ¥16,153 million, in conjunction with the change inthe expected remaining term of the bond.
・Interest expense increased ¥14,722 million year on year to ¥27,383 million.

The increase was mainly due tothe impact of making eAccess Ltd. a subsidiary and the issuance of bonds by the Company.

(viii) Equity in Loss of Associates
Equity in loss of associates was ¥1,083 million, a deterioration of ¥3,171 million year on year (equity in incomeof associates of ¥2,088 million was booked for the same period of the previous fiscal year).

(ix) Income before Income Tax
As a result of (vi) to (viii), income before income tax was ¥351,016 million, an increase of ¥155,017 million(79.1%) year on year.
5
6

Sprint Nextel Corporation changed its name to Sprint Communications, Inc. in July 2013.
Starburst II, Inc. changed its name to Sprint Corporation in July 2013.

4

SoftBank Corp. Consolidated Financial Report
For the three-month period ended June 30, 2013(x) Income Taxes
Provisions for current income taxes were ¥87,830 million, an increase of ¥10,412 million (13.4%) year on year.
The increase was mainly attributable to making GungHo a subsidiary.

(xi) Net Income
As a result of (ix) to (x), net income totaled ¥263,186 million, for a ¥144,605 million (121.9%) year-on-yearincrease.

(xii) Net Income Attributable to Owners of the Parent
After deducting net income attributable to non-controlling interests in subsidiaries such as Yahoo Japan
Corporation and GungHo from net income, net income attributable to owners of the parent was ¥238,262 million,
for a ¥132,682 million (125.7%) increase year on year.

(xiii) Comprehensive Income
Total comprehensive income was ¥339,598 million, for a ¥227,093 million (201.9%) year-on-year increase.

Of

this, comprehensive income attributable to owners of the parent was ¥315,510 million, for a ¥216,263 million(217.9%) year-on-year increase.

5SoftBank Corp. Consolidated Financial Report
For the three-month period ended June 30, 2013(b) Results by Segment
The Company has three reportable segments(Note 1): “Domestic Mobile Communications,” “Domestic Fixed-line
Telecommunications,” and “Internet.”

In the Domestic Mobile Communications business, SoftBank Mobile Corp. and other companies provide mobile
communications services and sales of mobile handsets and accessories accompanying the services, etc.
In the Domestic Fixed-line Telecommunications business, SoftBank Telecom Corp. provides telecommunication
services, such as fixed-line telecommunications and data communications services to corporate customers,
SoftBank BB Corp. and other companies provide broadband services for individual customers.
In the Internet business, Yahoo Japan Corporation provides Internet-based advertising operations and otherservices.
The reportable segments, their main businesses, and their core companies are listed in the table below.
Segments

Domestic Mobile
Communications

Reportable
Segments

Domestic Fixed-line
Telecommunications

Internet

Main Business・ Provision of mobile communications services
in Japan・ Sales of mobile handsets and accessories
accompanying the above services
・ Sales of PC software and peripherals
・ Production and distribution of online games for
smartphones, and other devices.
・ Provision of telecommunications services
such as fixed-line telecommunications anddata communication services, etc. todomestic corporate customers
・ Provision of broadband services to domestic
individual customers
・ Services accompanying the above services
・ Internet advertising
・ Operation of e-commerce sites such as
YAFUOKU! and Yahoo! Shopping, etc.
・ Membership services
・ Fukuoka SoftBank HAWKS related
businesses

OthersCore Companies
SoftBank Mobile Corp.
eAccess Ltd.
Wireless City Planning
Inc.
SoftBank BB Corp.
SoftBank Telecom Corp.
GungHo Online
Entertainment, Inc.
SoftBank Telecom Corp.
SoftBank BB Corp.
eAccess Ltd.
Yahoo Japan Corporation

Yahoo Japan Corporation

Fukuoka SoftBank
HAWKS Corp.
Fukuoka SoftBank
HAWKS Marketing
Corp.

Notes:
1 The results for the same period of the previous fiscal year have been presented in line with the above reportablesegments.
2 Segment income is calculated as follows:
Segment income = (net sales – cost of sales – selling, general and administrative expenses) in each segment
3 Consolidated operating income is the result of adding or deducting income from re-measurement relating tobusiness combination and other operating income (loss) to the sum of segment income.

6SoftBank Corp. Consolidated Financial Report
For the three-month period ended June 30, 2013(i) Domestic Mobile Communications(Millions of yen)Three-month Period
Ended June 30, 2012
YoY

Three-month Period
Ended June 30, 2013
(the period)

Net sales

522,214661,918

139,704

26.8％

Segment income

138,581

172,459

33,87824.4％

ChangeChange %< Overview of Operations >The segment’s net sales increased by ¥139,704 million (26.8%) year on year to ¥661,918 million.
factor behind the increase was the impact of making GungHo and eAccess Ltd. subsidiaries.

The main

Other factors

include increases in the number of mobile phone subscribers and the number of units sold at SoftBank Mobile
Corp., which led to increases in both service revenue (previously mainly telecom service revenue) and productsales (previously mainly sales of mobile handsets).
The segment’s operating expenses increased by ¥105,826 million (27.6%) year on year to ¥489,459 million.
The principal cause of this increase was the impact of making GungHo and eAccess Ltd. subsidiaries and higher
operating expenses at SoftBank Mobile Corp.

The cost of goods and sales commissions rose at SoftBank

Mobile Corp. in line with an increase in the number of iPhones and other smartphones sold.

SoftBank Mobile

Corp. continues to make aggressive capital expenditure that continues to increase depreciation and amortization.
In the same period of the previous fiscal year there was a temporary increase in depreciation and amortization asa result of accelerated depreciation of some telecommunications equipment which was replaced in order to rollout the 900 MHz network.
As a result, segment income increased by ¥33,878 million (24.4%) year on year to ¥172,459 million.

< Overview of Business Operations >・Number of Subscribers
Net subscriber additions (new subscribers minus cancellations) for the period at SoftBank Mobile Corp. totaled
810,000. This was primarily the result of steady sales of smartphones such as iPhone, Mimamori Phone(handset with security buzzer), and PhotoVision (a digital photo frame with telecommunications functionality),
due to conducting various sales promotions, such as White Plan Student & Family Discount 2013 (ended June 2,2013).

As a result, the cumulative number of subscribers 7 at SoftBank Mobile Corp. at the end of the periodstood at 33,290,000.

7Includes the number of prepaid mobile phones and communication module service subscribers.
The cumulative number of communication module service subscribers at the end of the period totaled 3,131,000.

7

SoftBank Corp. Consolidated Financial Report
For the three-month period ended June 30, 2013

・ARPU
ARPU (excluding communication modules) 8 at SoftBank Mobile Corp. for the period decreased by ¥50 year on
year to ¥4,460.

Out of this, data ARPU rose ¥150 year on year to ¥2,860. The decline in ARPU mainlyreflects an increase in subscribers of low data-usage products such as Mimamori Phone, and a decline in theusage of voice call function of voice devices and the resulting revenue decrease.

As for data ARPU, thecontinuous increase in the number of high data-ARPU smartphone subscribers contributed to an increase.

・Number of Units Sold
The number of units sold at SoftBank Mobile Corp. for the period increased by 437,000 year on year to
3,023,000.

Various sales promotions for iPhone 9 continued to deliver strong sales, contributing to increases inboth new subscriptions and handset upgrades.

The upgrade rate 10 at SoftBank Mobile Corp. for the period

was 1.25%, which was 0.2 of a percentage point higher year on year.

8

For definition and calculation of ARPU at SoftBank Mobile Corp., see page 11 “(Reference 2: Definition and Calculation
Method of ARPU, etc., at SoftBank Mobile Corp.).”9
Including a promotion for new and upgrading customers offering discounts, a promotion offering discounts to upgrading
existing customers that allows their family members to use the old handset (if they make a new subscription), etc.
10
For definition and calculation of the upgrade rate at SoftBank Mobile Corp., see page 11 “(Reference 2: Definition andCalculation Method of ARPU, etc., at SoftBank Mobile Corp.).”8

SoftBank Corp. Consolidated Financial Report
For the three-month period ended June 30, 2013(ii) Domestic Fixed-line Telecommunications(Millions of yen)Three-month Period
Ended June 30, 2012
YoY

Three-month Period
Ended June 30, 2013
(the period)

Net sales

127,935

133,406

5,471

4.3%

Segment income

27,73428,072338

1.2%

The segment’s net sales increased by ¥5,471 million (4.3%) year on year to ¥133,406 million.

This was mainly

ChangeChange %< Overview of Operations >the impact of making eAccess Ltd. a subsidiary.
Segment income increased by ¥338 million (1.2%) year on year to 28,072 million.

(iii) Internet(Millions of yen)Three-month Period
Ended June 30, 2012
YoY

Three-month Period
Ended June 30, 2013
(the period)

Net sales

80,937

96,19815,261

18.9％

Segment income

39,437

46,629

7,192

18.2％

ChangeChange %<Overview of Operations>
The segment’s net sales increased by ¥15,261 million (18.9%) year on year to ¥96,198 million.

The significant

increase in revenue growth was the result of sponsored-search advertising especially through smartphones at
Yahoo Japan Corporation as a result of strengthening various functions of its promotion advertising 11 to enhance
advertising efficiency and a vigorous sales drive.

Revenues from Yahoo! Premium ID also increased due torevising service charges and a growth in the customer base.
Segment income increased by ¥7,192 million (18.2%) year on year to ¥46,629 million.
the result of the increase in net sales.

11

Text-based or graphic advertisements changed on a cost-per-click basis.

9This was primarily

SoftBank Corp. Consolidated Financial Report
For the three-month period ended June 30, 2013

(Reference 1: Principal Operational Data）
Domestic Mobile Communications
Fiscal Year Ending
March 31, 2014

SoftBank Mobile Corp.

Cumulative
subscribers 12

Fiscal Year Ended March 31, 2013

(Thousands)
SoftBank Mobile Corp.
eAccess Ltd

13(Ref.)WILLCOM Inc. 14(PHS)(Thousands)
Net additions12
Postpaid
Prepaid(Yen per month)
ARPU(excluding
communication modules) 15
Data(Thousands)
Handsets shipped 16(Thousands)
Units sold 17
New subscriptions
Handset upgrades(% per month)
Churn rate 18
Postpaid(% per month)
Upgrade rate18(Ref.)(Yen per month)
ARPU (including
communication modules) 15
Data

Three-month
Period Ended June30, 2012

Three-month
Period Ended
September 30,
2012

Three-month
Period Ended
December 31,
2012

Q1

Q2

Q3

Three-month Period
Fiscal Year
Ended March 31, Ended March 31,
2013
2013
Full Year

Q4

Three-month
Period Ended
June 30, 2013
Q1

29,702

30,461

31,322

32,48033,290

4,138

4,259

4,292

4,319

4,343

4,696

4,814

4,943

5,086

5,199

753
772
-19

759
771
-12

861
872
-11

1,158
1,170
-12

3,531
3,585
-55

810
818
-8

4,510
2,710

4,650
2,760

4,630
2,800

4,400
2,840

4,550
2,780

4,460
2,860

2,359

2,631

3,486

3,082

11,558

2,575

2,586
1,663
923

2,997
1,718
1,279

3,843
1,894
1,949

3,686
2,243
1,443

13,113
7,519
5,594

3,023
1,790
1,233

1.03
0.96

1.06
1.00

1.12
1.06

1.14
1.09

1.09
1.03

0.99
0.94

1.05

1.42

2.10

1.51

1.53

1.25

4,210
2,540

4,340
2,580

4,300
2,610

4,060
2,630

4,230
2,590

4,090
2,640

12

Includes the number of prepaid mobile phones and communication module service subscribers.
eAccess Ltd. was made a subsidiary of the Company in January 2013.
14
WILLCOM Inc. was made a subsidiary of the Company in July 2013.
15
For definition and calculation method of ARPU at SoftBank Mobile Corp., see page 11 “(Reference 2: Definition andCalculation Method of ARPU, etc., at SoftBank Mobile Corp.).”16
Handsets shipped: the number of handsets shipped (sold) to handset dealers.
17
Units sold: the total number of new subscriptions and handset upgrades18
For definition and calculation of the churn and upgrade rates at SoftBank Mobile Corp., see page 11 “(Reference 2: Definition
and Calculation Method of ARPU, etc., at SoftBank Mobile Corp.).”13

10

SoftBank Corp. Consolidated Financial Report
For the three-month period ended June 30, 2013

(Reference 2: Definition and Calculation Method of ARPU, etc., at SoftBank Mobile Corp.)(i) Definition and calculation method of ARPU
ARPU (Average Revenue Per User per month）(rounded to the nearest ¥10)
ARPU (excluding communication modules)= (data-related revenue (excluding communication modules) + basic monthly charge, voice-related revenues, etc. (excluding
communication modules)) / number of active subscribers (excluding communication modules)
Data ARPU (excluding communication modules)= data-related revenue (excluding communication modules) / number of active subscribers (excluding communication
modules)
ARPU (including communication modules)= (data-related revenue + basic monthly charge, voice-related revenues, etc.) / number of active subscribers
Data ARPU (including communication modules)= data-related revenue / number of active subscribers
Number of active subscribers: the total of the monthly number of active subscribers for the relevant period((subscribers at the beginning of the month + subscribers at the end of the month)/2).
The number of active subscribers is based on SoftBank Mobile Corp.’s cumulative subscribers
including prepaid mobile phones, and devices that do not have voice communication
functionalities (excluding communication modules).
The number of active subscribers used in the calculation of ARPU (including communication
modules) includes communication modules.
Data-related revenue: packet communication and flat-rate charges, basic monthly Internet connection charges,
content-related revenues, etc.
Basic monthly charge and voice-related revenues: basic monthly usage charges, voice call charges, revenues from incoming
calls, device warrantee services, advertising revenue, etc.
Revenues from incoming calls: interconnection charges received from other operators for voice calls from theircustomers on their network to SoftBank mobile phones as a charge for the services
provided in the SoftBank Mobile Corp. service area.

(ii) Definition and calculation method of churn rate
Churn rate = churn / number of active subscribers (rounded to the nearest 0.01%)
Churn = total number of subscribers that churned during the relevant period
Number of active subscribers: the total of the monthly number of active subscribers for the relevant period((subscribers at the beginning of the month + subscribers at the end of the month/2).
The number of active subscribers is based on SoftBank Mobile Corp.’s cumulative subscribers
including prepaid mobile phones, communication modules, and devices that do not have voicecommunication functionalities.
The number of active subscribers used in the calculation of churn rate of postpaid subscribers
excludes prepaid mobile phones.

(iii) Definition and calculation method of upgrade rate
Upgrade rate = number of upgrades / number of active subscribers (rounded to the nearest 0.01%)
Number of upgrades = total number of upgrades during the relevant period
Number of active subscribers: the total of the monthly numbers of active subscribers for the relevant period((subscribers at the beginning of the month + subscribers at the end of the month)/2).
The number of active subscribers is based on SoftBank Mobile Corp.’s cumulative subscribers
including prepaid mobile phones, communication modules, and devices that do not have voicecommunication functionalities.

11SoftBank Corp. Consolidated Financial Report
For the three-month period ended June 30, 2013

(Reference 3: Capital Expenditure and Depreciation)(Note 4)(i) Capital Expenditure (acceptance basis)（Millions of yen）

Fiscal Year Ending
March 31,2014

Fiscal Year Ended March 31, 2013
Three-month
Period Ended
June 30, 2012

Three-month
Period Ended
September 30,
2012

Three-month
Period Ended
December 31,
2012

Three-month
Period Ended
March 31, 2013

Fiscal Year
Ended March
31, 2013

Three-month Period
Ended June 30, 2013

Q1

Q2

Q3

Q4

Full Year

Q1

92,500141,927

176,705

238,751

649,883

163,581

10,292

12,708

16,216

26,466

65,682

9,903

Internet

4,942

3,195

6,310

8,538

22,985

4,393

Others

7,163

1,866

2,126

3,456

14,611

2,835

Consolidated total

114,897

159,696

201,357

277,211753,161

180,712

Domestic Mobile
Communications
Domestic Fixed-line
Telecommunications(ii) Depreciation and Amortization（Millions of yen）

Fiscal Year Ending
March 31,2014

Fiscal Year Ended March 31, 2013
Three-month
Period Ended
June 30, 2012

Three-month
Period Ended
September 30,
2012

Three-month
Period Ended
December 31,
2012

Three-month
Period Ended
March 31, 2013

Fiscal Year
Ended March
31, 2013

Three-month Period
Ended June 30, 2013

Q1

Q2

Q3

Q4

Full Year

Q1

59,69363,54867,77889,204

280,223

83,367

12,603

12,642

12,79815,78653,82914,809Internet

3,171

2,917

2,992

3,490

12,5703,221

Others

1,956

2,114

2,127

2,301

8,498

1,902

Consolidated total

77,423

81,221

85,695

110,781355,120

103,299

Domestic Mobile
Communications
Domestic Fixed-line
Telecommunications

Note 4 The results for the previous fiscal year and each quarter of the previous fiscal year have been presented inline with the reportable segments for the period.

12SoftBank Corp. Consolidated Financial Report
For the three-month period ended June 30, 2013

(2) Qualitative Information Regarding Consolidated Financial Position(a) Assets, Liabilities, and Equity
Assets, liabilities, and equity at the end of the period were as follows:(Millions of yen)

As of March 31, 2013

As of June 30, 2013

ChangeChange %Total assets

7,216,809

8,368,677

1,151,868

16.0%

Total liabilities

5,286,381

6,086,998

800,617

15.1%

Total equity

1,930,428

2,281,679

351,25118.2%(i) Current Assets
Current assets at the end of the period totaled ¥3,579,664 million, for a ¥793,645 million (28.5%) increase fromMarch 31, 2013, (“the previous fiscal year-end”).

The primary components of the change were as follows:

・ Cash and cash equivalents increased by ¥631,265 million from the previous fiscal year-end.

This wasprimarily due to the issuance of new corporate bonds by the Company for the purpose of raising funds for theacquisition of Sprint.
・ Other financial assets increased by ¥123,448 million from the previous fiscal year-end, primarily because of anincrease of ¥76,342 million in derivative financial assets. This was mainly due to a foreign currency forward
contract for approximately US$17.0 billion for the acquisition of Sprint being evaluated at fair value at the end of
the period. Please refer to page 45 “11. Finance Cost, net” under “3. Condensed Interim Consolidated Financial
Statements (6) Notes to Condensed Interim Consolidated Financial Statements” for details.

(ii) Non-current Assets
Non-current assets totaled ¥4,789,013 million at the end of the period, for a ¥358,223 million (8.1%) increase
from the previous fiscal year-end.

The primary components of the change were as follows:・ Goodwill increased ¥147,574 million from the previous fiscal

year-end.

recording of goodwill associated with making GungHo a subsidiary.

This was mainly due to the

Please refer to page 38 “5. Businesscombination” under “3. Condensed Interim Consolidated Financial Statements (6) Notes to Condensed Interim
Consolidated Financial Statements” for details.
・ Intangible assets increased by ¥80,805 million from the previous fiscal year-end.

This was mainly due to therecognition of game titles owned by GungHo upon making it a subsidiary, for ¥77,796 million (balance as ofthe end of the period: ¥71,313 million).

Another factor was an increase of ¥19,646 million in software

reflecting new acquisitions of equipment such as base stations at SoftBank Mobile Corp.
・ Otherfinancial assets increased by ¥65,515 million from the previous fiscal year-end.

The primary

components of the increase were increases in the fair value of WILLCOM, Inc. shares and the convertible
bonds issued by Sprint held by the Company from the previous fiscal year-end.
・ Property, plant and equipment increased by ¥59,544 million from the previous fiscal year-end.

This wasmainly because of an increase of ¥67,313 million in telecommunications equipment, primarily due to new
acquisitions of equipment such as base stations in order to strengthen the communications network in theDomestic Mobile Communications segment.

13

SoftBank Corp. Consolidated Financial Report
For the three-month period ended June 30, 2013(iii) Current Liabilities
Current liabilities at the end of the period totaled ¥2,834,566 million, for a ¥3,350 million (0.1%) decrease fromthe previous fiscal year-end.

The primary components of the change were as follows:・ Interest-bearing debt increased ¥191,763 million from the previous fiscal year-end.

This was mainly due toincreases of ¥82,341 million in short-term borrowings, ¥55,000 million in commercial paper, ¥19,935 million
in the current portion of corporate bonds, and ¥17,960 million in lease obligations payable within one year.
・ Income taxes payables decreased by ¥125,666 million from the previous fiscal year-end.

This mainlyreflected the payment of income taxes payables recorded at the previous fiscal year-end during the period.
・ Trade and other payables declined by ¥33,362 million from the previous fiscal year-end.

This was mainly

the result of a decrease of ¥41,214 million in accounts payable – other and accrued expenses, mainly because
SoftBank Mobile Corp. paid accrued sales commissions for the 2013 spring shopping season to dealers.
・ Other current liabilities decreased by ¥36,837 million from the previous fiscal year-end.

(iv) Non-current Liabilities
Non-current liabilities totaled ¥3,252,432 million at the end of the period, for a ¥803,967 million (32.8%)
increase from the previous fiscal year-end.

The primary components of the change were as follows:・ Interest-bearing debt increased ¥718,078 million from the previous fiscal year-end.

This was mainly due toincreases of ¥674,569 million in corporate bonds and ¥52,176 million in lease obligations.

The increase incorporate bonds mainly reflects an increase of ¥715,309 million due to the issuance of new foreign currency
denominated straight corporate bonds and unsecured straight corporate bonds by the Company to raise funds
for the Sprint acquisition.

Meanwhile, the total amount of ¥44,842 million of unsecured straight corporate

bonds was reclassified from long-term to current liabilities, as the redemption dates came to be within one
year.

Lease obligations rose mainly due to an increase in capital expenditure via lease transactions in theDomestic Mobile Communications segment.

For further details regarding the changes in the level ofinterest-bearing debt please refer to page 43 “9. Interest-bearing debt” under “3. Condensed Interim
Consolidated Financial Statements (6) Notes to Condensed Interim Consolidated Financial Statements.”
・ Deferred tax liabilities increased by ¥66,119 million from the previous fiscal year-end, mainly in line with anincrease in derivative financial assets.

(v) Equity
Total equity was ¥2,281,679 million at the end of the period, for a ¥351,251 million (18.2%) increase from theprevious fiscal year-end.

Of this amount, total equity attributable to owners of the parent increased by¥291,971 million (18.1%) from the previous fiscal year-end.

As a result, the equity ratio for equity attributableto owners of the parent increased by 0.5 of a percentage point from the previous fiscal year-end to 22.8%.

The

primary components of the change were as follows:(Equity attributable to owners of the parent)
Total equity attributable to owners of the parent increased by ¥291,971 million from the previous fiscal year-end
to ¥1,904,727 million.

14

SoftBank Corp. Consolidated Financial Report
For the three-month period ended June 30, 2013

・ Retained earnings increased by ¥214,426 million from the previous fiscal year-end.

This mainly reflected therecording of net income attributable to owners of the parent of ¥238,262 million, despite a decrease of ¥23,830
million due to the payment of the year-end dividend for the fiscal year ended March 31, 2013.
・ Accumulated other comprehensive income increased by ¥77,254 million from the previous fiscal year-end.

This was mainly due to an increase of ¥28,887 million in exchange differences on translating foreign
operations caused by the yen’s depreciation in the foreign exchange market.

(Non-controlling interests)
Non-controlling interests increased by ¥59,280 million from the previous fiscal year-end to ¥376,952 million,
mainly in conjunction with making GungHo a subsidiary.

(b) Cash Flows
Cash flows during the period were as follows:
Cash and cash equivalents at the end of the period totaled ¥2,070,322 million, for a ¥631,265 million increase
from the previous fiscal year-end.
(Millions of yen)Three-month Period
Ended June 30, 2012

Three-month Period
Ended June 30, 2013

Cash flows from operating activities

117,796

2,243(115,553)

Cash flows from investing activities(176,836)(246,062)(69,226)

Cash flows from financing activities(196,685)

874,132

1,070,817(Ref.) Free cash flow(Note 5)(59,040)(243,819)(184,779)

ChangeNote 5 Free cash flow: the combined cash flows from operating activities and investing activities.
(i) Cash Flows from Operating Activities
Net cash provided by operating activities totaled ¥2,243 million (compared with ¥117,796 million provided in
the same period of the previous fiscal year).

The primary components of the change were as follows:・ Net income totaled ¥263,186 million.
・ The main items added to net income were ¥103,299 million in depreciation and amortization and ¥39,122

million in finance cost, net.
・ The main item decreasing net income was income from re-measurement relating to business combination of¥150,120 million.

Please refer to page 38 “5. Business combination” under “3. Condensed Interim

Consolidated Financial Statements (6) Notes to Condensed Interim Consolidated Financial Statements” fordetails.
・ Income taxes paid was ¥256,339 million.

This amount includes income tax withheld at source relating to

intragroup dividend payments executed during the previous fiscal year, out of this ¥51,467 million is expected
to be recovered by September 30, 2013.

15

SoftBank Corp. Consolidated Financial Report
For the three-month period ended June 30, 2013(ii) Cash Flows from Investing Activities
Net cash used in investing activities was ¥246,062 million (compared with ¥176,836 million used in the same
period of the previous fiscal year).

The primary outlays were purchase of property, plant and equipment, andintangibles amounting to ¥182,252 million, due to capital expenditures mainly in the Domestic Mobile
Communications businesses.

(iii) Cash Flows from Financing Activities
Net cash provided by financing activities was ¥874,132 million (compared with ¥196,685 million used in thesame period of the previous fiscal year).

The primary components of the change were as follows:(Items increasing cash flows)
・ Proceeds from long-term interest-bearing debt was ¥944,051 million.

This mainly included proceeds fromissuance of corporate bonds of ¥724,382 million, proceeds from sale and leaseback of equipment newly
acquired of ¥126,310 million, and long-term debt of ¥93,359 million.
・Increase in short-term interest-bearing debt, net increased cash flows by ¥131,072 million.
(Items decreasing cash flows)・Repayment of long-term interest-bearing debt was ¥180,988 million.

This mainly included repayment oflong-term debt of ¥87,944 million, repayment of lease obligations of ¥50,836 million, and redemption of
corporate bonds of ¥25,000 million.
・Cash dividends paid of ¥21,862 million were recorded.

(3) Qualitative Information Regarding Forecast on the Consolidated Operation Results
The Company is projecting consolidated operating income of at least ¥1 trillion under IFRSs in the fiscal year ending
March 31, 2014. This includes gains of ¥253.9 billion in total resulting from the re-evaluation of the existing equity
interests held in GungHo and WILLCOM, Inc. at fair value when both companies became subsidiaries.

16

SoftBank Corp. Consolidated Financial Report
For the three-month period ended June 30, 2013

2. Notes for Summary Information(1) Changes in accounting policies and accounting estimates(Changes in accounting estimates)
For the three-month period ended June 30, 2013, the Company changed assumption and estimates, related to theacquisition of Sprint Nextel Corporation (“Sprint”), and used as material basis for the carrying amount of theconvertible bonds issued by Sprint and held by a subsidiary, Starburst II, Inc.
Please refer to “11. Finance cost, net” in “(6) Notes to condensed interim financial statement” under “3. Condensed
Interim Consolidated Financial Statements” for details.

17SoftBank Corp. Consolidated Financial Report
For the three-month period ended June 30, 2013

3. Condensed Interim Consolidated Financial Statements(1) Condensed Interim Consolidated Statements of Financial Position(Millions of yen)
As ofApril 1, 2012

AssetsCurrent assets
Cash and cash equivalents
Trade and other receivables
Other financial assets
Inventories
Other current assets
Total current assets
Non-current assets
Property, plant and equipment
Goodwill
Intangible assets
Investments accounted for using
the equity method
Other financial assets
Deferred tax assets
Other non-current assets
Total non-current assets
Total assets

18

As of
March 31, 2013

As ofJune 30, 2013

1,021,113

1,439,057

2,070,322

786,902936,307926,816

10,399229,239352,687

55,68354,26874,11085,014

127,148

155,729

1,959,111

2,786,019

3,579,664

1,377,185

1,830,615

1,890,159

777,911927,399

1,074,973

340,323

524,893605,698

208,526

208,664

211,688318,599

634,647

700,162

183,409

175,390

156,359

85,490129,182

149,974

3,291,443

4,430,790

4,789,013

5,250,554

7,216,809

8,368,677

SoftBank Corp. Consolidated Financial Report
For the three-month period ended June 30, 2013

(Millions of yen)

As ofApril 1, 2012
Liabilities and equity
Current liabilities
Interest-bearing debt
Trade and other payables
Other financial liabilities
Income taxes payables
Provisions
Other current liabilities
Total current liabilities
Non-current liabilities
Interest-bearing debt
Other financial liabilities
Defined benefit liabilities
Provisions
Deferred tax liabilities
Other non-current liabilities
Total non-current liabilities
Total liabilities
EquityEquity attributable to owners of the parent
Common stock
Additional paid-in capital
Retained earnings
Treasury stock
Accumulated other comprehensive
incomeTotal equity attributable to owners of theparentNon-controlling interests
Total equity
Total liabilities and equity

19

As of
March 31, 2013

As ofJune 30, 2013

926,671975,832
1,206
123,213
1,456
94,155

1,534,128
972,669
4,833
182,050
1,602
142,634

1,725,891
939,307
5,651
56,384
1,536
105,797

2,122,533

2,837,916

2,834,566

1,763,273
37,17014,953
20,64345,351
79,5852,173,725
38,654
14,506
21,765
119,628
80,1872,891,803
57,911
14,51022,260185,747
80,201

1,960,975

2,448,465

3,252,432

4,083,508

5,286,381

6,086,998

213,798
250,767
405,584(22,947)

238,772
436,704
712,088(22,834)

238,772
436,771926,514(22,610)45,433

248,026

325,280

892,635

1,612,756

1,904,727

274,411317,672

376,952

1,167,046

1,930,428

2,281,679

5,250,554

7,216,809

8,368,677

SoftBank Corp. Consolidated Financial Report
For the three-month period ended June 30, 2013

(2) Condensed Interim Consolidated Statements of Income and Other Comprehensive Income
Condensed Interim Consolidated Statements of Income(Millions of yen)Three-month period ended Three-month period ended
June 30, 2012
June 30, 2013
Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Income from re-measurement relating to businesscombination
Other operating loss
Operating income
Finance cost, net
Equity in income (loss) of associates
Income before income tax
Income taxes
Net income
Net income attributable to
Owners of the parent
Non-controlling interests

Earnings per share attributable to owners of the parent
Basic (yen)Diluted (yen)20

725,944(344,846)
381,098(177,782)

881,069(415,792)
476,277(223,400)-

150,120-(972)

203,316(9,405)2,088

391,025(38,926)(1,083)

195,999(77,418)

351,016(87,830)

118,581

263,186

105,580
13,001

238,262
24,924

118,581

263,186

96.11
94.52

199.96
199.68

SoftBank Corp. Consolidated Financial Report
For the three-month period ended June 30, 2013

Condensed Interim Consolidated Statements of Comprehensive Income(Millions of yen)Three-month period ended
June 30, 2012

Three-month period ended
June 30, 2013

118,581

263,186

(2)

(6)

(2)

(6)

(9,802)

22,912

101

24,895(4,713)22,996

8,340

5,615

(6,074)76,418Net income
Other comprehensive income (loss), net of tax
Items that will not be reclassified to profit or loss
Remeasurements of defined benefit plan
Total items that will not be reclassified to profit
or loss
Items that may be reclassified subsequently to
profit or loss
Available-for-sale financial assets
Cash flow hedges
Exchange differences on translating foreign
operations
Share of other comprehensive income ofassociates
Total items that may be reclassified subsequently to
profit or loss
Total other comprehensive income (loss), net of tax
Total comprehensive income
Total comprehensive income attributable to
Owners of the parent
Non-controlling interests

21(6,076)76,412

112,505

339,598

99,247

315,510

13,25824,088112,505

339,598

SoftBank Corp. Consolidated Financial Report
For the three-month period ended June 30, 2013

(3) Condensed Interim Consolidated Statements of Changes in Equity
For the three-month period ended June 30, 2012
(Millions of yen)
Equity attributable to owners of the parent

As of April 1, 2012
Comprehensive income
Net income
Other comprehensive
loss
Total comprehensive
incomeTransactions with owners
and other transactions
Cash dividends
Transfer of accumulated
other comprehensive
loss to retained
earnings
Purchase and disposal oftreasury stock
Changes in interests in
subsidiaries
Changes in associates’interests in theirsubsidiaries
Share-based paymenttransactions
Other
Total transactions withowners and othertransactions
As of June 30, 2012

Additional
Commonpaid-instock
capital213,798
250,767

Retainedearnings
405,584

Treasurystock(22,947)

Accumulated
othercomprehensive
income45,433

Total
892,635

Noncontrollinginterests Total equity
274,411
1,167,046--

105,580--

105,580

13,001

118,581

-

-

-

-

(6,333)(6,333)257(6,076)--

105,580-(6,333)99,247

13,258112,505--(43,941)--(43,941)(11,832)(55,773)

-

-

(2)

-

2

-

-

-

-

-

-

(2)

-

(2)

-

(2)

-

(254)

-

-

-

(254)

(21)

(275)

-

(51,216)---(51,216)-(51,216)

-

32

-

-

-

32

-

32

-

-

-

-

-

-

(197)

(197)

-

(51,438)(43,943)(2)

2(95,381)(12,050)(107,431)

213,798

199,329467,221(22,949)

39,102896,501

275,619

1,172,120

22

SoftBank Corp. Consolidated Financial Report
For the three-month period ended June 30, 2013

For the three-month period ended June 30, 2013
(Millions of yen)
Equity attributable to owners of the parent

As of April 1, 2013
Comprehensive income
Net income
Other comprehensive
incomeTotal comprehensive
incomeTransactions withowners and othertransactions
Cash dividends
Transfer ofaccumulated othercomprehensive loss
to retained earnings
Purchase and disposalof treasury stock
Changes frombusiness
combination
Changes in interestsin subsidiaries
Decrease by
exercise ofstock acquisitionright
Share-based paymenttransactions
Other
Total transactions
with owners andother transactions
As of June 30, 2013

Additional
Common paid-in
stock
capital238,772
436,704

Retainedearnings
712,088

Accumulated
other
Treasury comprehensivestock
income(22,834)
248,026

Total
1,612,756

Noncontrollinginterests
317,672

Total equity
1,930,428--

238,262--

238,262

24,924

263,186

-

-

-

-

77,24877,248(836)

76,412--

238,262-

77,248315,510

24,088339,598--(23,830)--(23,830)(13,556)(37,386)

-

-

(6)

-

6

-

-

-

-

17

-

224

-

241

-

241

-

-

-

-

-

-

48,866

48,866

-

(73)

-

-

-

(73)

(207)

(280)

-

(29)

-

-

-

(29)

-

(29)

-

152

-

-

-

152

-

152

-

-

-

-

-

-

89

89

-

67

(23,836)224

6(23,539)

35,192

11,653

238,772

436,771926,514(22,610)

325,280

1,904,727

376,952

2,281,679

23

SoftBank Corp. Consolidated Financial Report
For the three-month period ended June 30, 2013

(4) Condensed Interim Consolidated Statements of Cash Flows(Millions of yen)Three-month period ended Three-month period ended
June 30, 2012
June 30, 2013
Cash flows from operating activities
Net income
Depreciation and amortization
Equity in (income) loss of associates
Finance cost, net
Income from re-measurement relating to businesscombination
Income taxes
Decrease in trade and other receivables
Decrease in trade and other payables

118,581

263,186

77,423103,299(2,088)

1,083

9,184

39,122-(150,120)

77,41887,83021,443

10,196(66,995)(31,475)

Other

15,664(43,059)

Subtotal

250,630

280,062Interest and dividends received
Interest paid
Income taxes paid
Net cash provided by operating activities

Cash flows from investing activities
Purchase of property, plant and equipment, andintangible assets
Payments for acquisition of investments
Proceeds from sales/redemption of investments
Decrease from acquisition of control oversubsidiaries
Other
Net cash used in investing activities
Cash flows from financing activities(Decrease) increase in short-term interest-bearing
debt, net
Proceeds from long-term interest-bearing debt
Repayment of long-term interest-bearing debt
Cash dividends paid
Cash dividends paid to non-controlling interests
Payments for preferred stocks, stock acquisition rights,
and long-term debt of subsidiaries.
Other
Net cash (used in) provided by financing activities
Effect of exchange rate changes on cash and cash
equivalents(Decrease)increase in cash and cash equivalents
Cash and cash equivalents at the beginning of the period
Cash and cash equivalents at the end of the period

24

637

2,291

(8,789)(23,771)(124,682)(256,339)

117,796

2,243(126,905)(182,252)(45,709)(16,800)

7,571

13,780-(15,408)(11,793)(45,382)(176,836)(246,062)(2,489)131,072

189,337

944,051(131,694)(180,988)(39,232)(21,862)(11,791)(13,461)(200,444)

-

(372)

15,320(196,685)

874,132

(333)

952

(256,058)

631,265

1,021,113

1,439,057

765,055

2,070,322

SoftBank Corp. Consolidated Financial Report
For the three-month period ended June 30, 2013(5) Significant Doubt about Going-Concern Assumption
There are no applicable items for the three-month period ended June 30, 2013.

(6) Notes to Condensed Interim Consolidated Financial Statements
1. Reporting entity
SoftBank Corp. is a corporation domiciled in Japan. These condensed interim consolidated financial statements
are comprised of SoftBank Corp. and its subsidiaries (“the Company”). The Company engages in various
businesses in the information industry, with its base in Domestic Mobile Telecommunications, Domestic
Fixed-Line Telecommunications, and Internet business. The details are described in “6. Segment information.”
2. Basis of preparation of condensed interim consolidated financial statements(1) Compliance with IFRSs and first-time adoption
These condensed interim consolidated financial statements of the Company have been prepared in accordancewith International Accounting Standard 34 “Interim Financial Reporting” pursuant to Article 93 of the Regulation
Concerning Terminology, Forms and Preparation Methods of Quarterly Consolidated Financial Statements(Cabinet Office Ordinance No. 64, 2007), as the Company meets the criteria of a “Specified company” defined
under Article 1-2, Paragraph 1, Item 1 of the Regulation Concerning Terminology, Forms, and Preparation
Methods of Consolidated Financial Statements (Ministry of Finance Ordinance No. 28, 1976).
These condensed interim consolidated financial statements are the Company’s first condensed interim
consolidated financial statements prepared under IFRSs. The date of transition to IFRSs is April 1, 2012. The
Company applied IFRS 1 “First-Time Adoption of International Financial Reporting Standards” for the transition
to IFRSs. The effect of the transition to IFRSs on the Company’s financial position, results of operations, andthe cash flows is provided in “14. First-time adoption of IFRSs.”(2) Basis of measurement
These condensed interim consolidated financial statements have been prepared on the historical cost basis, except
for certain items, such as financial instruments, that are measured at fair value, as explained in “3. Significant
accounting policies.”(3) Presentation currency and unit of currency
These condensed interim consolidated financial statements have been presented in Japanese yen, which is thecurrency of the primary economic environment of SoftBank Corp. (“functional currency”), and are rounded off tothe nearest million yen.
(4) New standards and interpretations not yet adopted by the Company
The Company has not early adopted standards and interpretations (including IFRS 9 “Financial Instruments”) thathave not been enforced as of June 30, 2013, in the preparation of these condensed interim consolidated financial
statements. The Company is currently evaluating potential impacts that application of these will have on the
consolidated financial statements and it is not possible to estimate the amount of these impacts.

25

SoftBank Corp. Consolidated Financial Report
For the three-month period ended June 30, 2013

3．Significant accounting policies
The following significant accounting policies have been applied consistently to all periods presented in thesecondensed interim consolidated financial statements (including the consolidated statement of financial position at
the date of transition to IFRSs) unless otherwise mentioned elsewhere.
(1) Basis of consolidation(a) Subsidiaries
A subsidiary is an entity that is controlled by SoftBank Corp..
The Company controls an entity when the Company is exposed to, or has rights to, variable returns from its
involvement with the entity and has the ability to affect those returns through its power over the entity.
Subsidiary’s financial statements are consolidated from the date when control is acquired (“acquisition date”)
until the date when the control is lost.
When necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting
policies in line with those used by the Company.
Non-controlling interests consist of those interests at the acquisition date and any adjustments for subsequentchanges in those interests.
Total comprehensive income of subsidiaries is generally attributed to the owners of the parent and to thenon-controlling interests, even if this results in the non-controlling interests having a deficit balance.
All intragroup balances and transactions and unrealized gain or loss arising from intragroup transactions are
eliminated on consolidation.
Changes in the Company’s ownership interests in subsidiaries that do not result in the Company’s losing
control over the subsidiaries are accounted for as equity transactions. The carrying amounts of theCompany's interests and the non-controlling interests are adjusted to reflect the changes in their interests in thesubsidiaries.
Any difference between the amount by which the non-controlling interests are adjusted and the fair value ofthe consideration paid or received is recognized directly in equity and attributed to owners of the parent.
When SoftBank Corp. loses control of a subsidiary, a gains or losses is calculated as the difference between:• The aggregate of the fair value of the consideration received and the fair value of any retained interest, and:• The net carrying amount of the assets (including goodwill), liabilities, and non-controlling interests of thesubsidiary when a control is lost.
Any amounts previously recognized in other comprehensive income in relation to the former subsidiaries arereclassified to profit or loss.
(b) Associates
An associate is an entity over which SoftBank Corp. has significant influence in the financial and operating
policy decisions but does not have control or joint control.
Investments in associates are accounted for using the equity method and initially recognized at cost. The
investment is adjusted thereafter to recognize the Company's share of the profit or loss and othercomprehensive income from the date of acquisition to the date of loss of significant influence.
When the loss of an associate exceeds the Company's interest in that company, long-term interests that, in
substance, form part of the net investment in the company are decreased to zero, and no additional loss isrecognized except when the Company incurs legal or constructive obligations to or makes payments on behalfof the associate.

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SoftBank Corp. Consolidated Financial Report
For the three-month period ended June 30, 2013

Unrealized gains or losses on intercompany transactions with associates are recoded as the subtraction or the
addition to the carrying amount of the investments only to the extent of the Company’s interests in theassociates.
Any excess in the cost of acquisition of an associate over the Company’s share of the net fair value of theidentifiable assets and liabilities recognized at the date of acquisition is recognized as goodwill, which isincluded within the carrying amount of the investments accounted for using the equity method.
Because goodwill that forms part of the carrying amount of an investment in associates is not separately
recognized, it is not tested for impairment separately. Instead, the entire carrying amount of the investment
in associates, including goodwill, is tested for impairment as a single asset whenever objective evidence
indicates that the investment may be impaired.
(2) Business combinations
Business combinations are accounted for using the acquisition method at the acquisition date.
The consideration transferred in a business combination is measured as the sum of the acquisition date fair valuesof the assets transferred by the Company, liabilities incurred by the Company from the former owners of theacquiree, and the equity interests issued by the Company. Acquisition-related costs are expensed as incurred.
At the acquisition date, the identifiable assets acquired and the liabilities assumed are recognized at their fairvalue, except that:• Deferred tax assets or liabilities and assets or liabilities related to employee benefits are recognized andmeasured in accordance with IAS 12 “Income Taxes” and IAS 19 “Employee Benefits,” respectively;• Liabilities or equity instruments related to share-based payment arrangements of the acquiree or share-based
payment arrangements of the Company entered into to replace share-based payment arrangements of theacquiree are measured in accordance with IFRS 2 “Share-based Payment” at the acquisition date; and• Assets or disposal groups that are classified as held for sale are measured in accordance with IFRS 5“Non-current Assets Held for Sale and Discontinued Operations.”
The excess of the consideration transferred and the amount of any non-controlling interest in the acquiree overthe fair value of the identifiable net assets acquired at the acquisition date is recorded as goodwill. If theconsideration transferred and the amount of any non-controlling interest in the acquiree is less than the fair valueof the identifiable net assets of the acquired subsidiary, the excess is recognized immediately as a bargain
purchase gain.
On an acquisition-by-acquisition basis, the Company chooses a measurement basis of non-controlling interests ateither fair value or the present ownership instruments’ proportionate share in the recognized amounts of theacquiree’s identifiable net assets. When a business combination is achieved in stages, the Company's
previously held interest in the acquiree is remeasured to fair value at the acquisition date and the resulting gain or
loss, if any, is recognized in profit or loss.
Amounts arising from interests in the acquiree prior to the acquisition date that have previously been recognizedin other comprehensive income are recognized in profit or loss.
The Company has adopted the exemption in IFRS 1 and elected not to apply IFRS 3 “Business Combinations”
retrospectively to business combinations that occurred before April 1, 2012 (the date of transition to IFRSs).
Goodwill arising in business combinations that occurred before the date of transition to IFRSs is carried over at
the carrying amount under the previous accounting standard (JGAAP) as of the date of transition to IFRSs andrecorded by that amount after impairment test.

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SoftBank Corp. Consolidated Financial Report
For the three-month period ended June 30, 2013

(3) Foreign currency translation(a) Transactions denominated in foreign currencies
The financial statements of each company in the Company are prepared in the functional currency.
Transactions in currencies other than the entity's functional currency (foreign currencies) are translated at therates of exchange prevailing at the dates of the transactions.
Monetary items denominated in foreign currencies are translated at the rates prevailing at the end of the period.
Non-monetary items carried at fair value that are denominated in foreign currencies are translated into thefunctional currency at the rates prevailing at the date when the fair value was measured.
Exchange differences arising from translation are recognized in profit or loss, except for exchange differences
arising from non-monetary available-for-sale financial assets through other comprehensive income and cash
flow hedges are recognized in other comprehensive income.
(b) Foreign operations
For the purposes of presenting consolidated financial statements, the assets and liabilities of the Company's
foreign operations (including the adjustments for goodwill and fair value arising from acquisitions) aretranslated into Japanese yen using exchange rates prevailing at the end of each period.
Income and expenses are translated using the average exchange rates for the quarter.
Exchange differences arising from translating the financial statements of foreign operations are recognized inother comprehensive income and cumulative differences are included in accumulated other comprehensive
income.
These cumulative differences are reclassified from equity to profit or loss when the Company loses control orsignificant influence over the foreign operation.
With the adoption of the exemption in IFRS 1, the Company transferred all of the accumulated exchange
differences to retained earnings at the date of transition to IFRSs.
(4) Financial instruments(a) Financial instruments
Financial assets and financial liabilities are recognized when the Company becomes a party to the contract
provision of the instrument.
Financial assets and financial liabilities are measured at fair value at initial recognition. Transaction costs
that are directly attributable to the acquisition or issuance of financial assets and financial liabilities other thanfinancial assets at fair value through profit or loss (“financial assets at FVTPL”) and financial liabilities at fairvalue through profit or loss (“financial liabilities at FVTPL”) are added to the fair value of the financial assets
or deducted from the fair value of financial liabilities on initial recognition. Transaction costs directly
attributable to the acquisition of financial assets at FVTPL and financial liabilities at FVTPL are recognizedin profit or loss.
(b) Non-derivative financial assets
Non-derivative financial assets are classified into “financial assets at FVTPL”, “held-to-maturity
investments”, “loans and receivables,” and “available-for-sale financial assets.” The classification depends
on the nature and purpose of the financial assets and is determined at the time of initial recognition.
All purchase and sales of financial assets in a regular way are recognized and derecognized on a trade datebasis. The purchase and sales in a regular way is to purchase or sell financial assets under a contract that
requires the delivery of assets within a time frame established by regulation or convention in the marketplace.

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SoftBank Corp. Consolidated Financial Report
For the three-month period ended June 30, 2013(i) Financial assets at FVTPL
The Company designates a financial asset as a financial asset at FVTPL upon initial recognition, if:･ The financial assets are managed in accordance with the Company's documented risk management
policy or investment strategy, and:･ Its performance is reviewed on the fair value basis by the Company’s management to make decisions
about the investment plan.
After initial recognition, financial assets at FVTPL are stated at fair value, with any gains or loss arisingfrom changes in fair value, dividends, or interests received recognized in profit or loss.
(ii) Held-to-maturity investments
Non-derivative financial assets with fixed or determinable payments and fixed maturity dates and that theCompany has the positive intent and ability to hold to maturity are classified as “held-to-maturity
investments.”
Subsequent to initial recognition, held-to-maturity investments are measured at amortized cost using theeffective interest method less any impairment. Interest income based on the effective interest rate isrecognized in profit or loss.
(iii) Loans and receivables
Non-derivative financial assets with fixed or determinable payments that are not quoted in an active
market are classified as “loans and receivables.”Subsequent to initial recognition, loans and receivables are measured at amortized cost using the effective
interest method, less any impairment. Interest income based on the effective interest rate is recognized in
profit or loss.
(iv) Available-for-sale financial assets
Non-derivative financial assets are classified as “available-for-sale financial assets,” if:・those are designated as “available-for-sale financial assets”; or・those are classified neither as “financial assets at FVTPL,” “held-to-maturity investments,” nor “loans
and receivables.”Subsequent to initial recognition, available-for-sale financial assets are measured at fair value and gains orlosses arising from changes in fair value are recognized in other comprehensive income. Exchange
differences arising on monetary financial assets classified as available-for-sale financial assets, interest
income calculated using the effective interest method relating to available-for-sale financial assets anddividends are recognized in profit or loss.
(v) Impairment of financial assets
Financial assets, other than those at FVTPL, are assessed for any objective evidence of impairment at theend of each quarter. Financial assets are impaired when there is objective evidence of impairment, as aresult of loss events that occurred after the initial recognition of the financial assets and these events haveadversely affected the estimated future cash flows of the financial assets that can be reliably estimated.
For available-for-sale equity instruments, a significant or prolonged decline in the fair value below thecost is considered to be objective evidence of impairment. In addition, objective evidence of impairmentof all financial assets could include:• Significant financial difficulty of the issuer or borrower; or• Breach of contract, such as a default or delinquency in interest or principal payments; or• High possibilities of borrowers’ bankruptcy or entering financial reorganization; or• Disappearance of an active market for the financial assets.
The Company assesses the existence of objective evidence of impairment individually for separately
significant assets or collectively for assets with no individual significance.

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SoftBank Corp. Consolidated Financial Report
For the three-month period ended June 30, 2013

When there is objective evidence of impairment on loans and receivables or held-to-maturity investments,
the difference between the asset's carrying amount and the present value of estimated future cash flows,
discounted at the original effective interest rate, is recognized in profit or loss as an impairment loss.
The impairment loss is recognized through the use of an allowance account, and the carrying amount of aloan and receivable is written off against the allowance account when it is considered uncollectible. The
carrying amount of held-to-maturity investments is reduced by the impairment loss directly. If, in a
subsequent period, the amount of the impairment loss decreases and the decrease can be related
objectively to an event occurring after the impairment was recognized, the previously recognizedimpairment loss is reversed through profit or loss to the extent that the carrying amount of the financial
asset does not exceed what the amortized cost would have been had the impairment not been recognized.
When there is objective evidence that an available-for-sale financial asset is impaired, previously
recognized accumulated other comprehensive income is transferred to profit or loss. With regards toequity instruments classified as available-for-sale financial assets, impairment losses are not reversed.
(vi) Derecognition of financial assets
The Company derecognizes a financial asset when the contractual rights to the cash flows from thefinancial asset expire or when it transfers the financial asset and substantially all the risks and rewards ofownership of the financial asset.
(c) Non-derivative financial liabilities
The Company's non-derivative financial liabilities include interest-bearing debt and trade and other payables.
These financial liabilities are measured at amortized cost using the effective interest method, subsequent toinitial recognition.
The Company derecognizes financial liabilities when the Company's obligations are discharged, canceled or
expired.
(d) Derivatives and hedge accounting(i) Derivatives
The Company is engaged in derivative transactions, including foreign currency forward contract andinterest rate swaps in order to manage its exposure to foreign exchange rate and interest rate risks.
Derivatives are initially recognized at fair value at the date the derivative contracts are entered into and aresubsequently measured at their fair values at the end of each quarter. Changes in the fair value ofderivative are recognized in profit or loss immediately unless the derivative is designated and effective asa hedging instrument. Derivative financial assets not designated as hedging instruments are classified
into “financial assets at FVTPL” and derivative financial liabilities not designated as hedging instruments
are classified into “financial liabilities at FVTPL.”(ii) Hedge accounting
The Company designates certain derivative transactions as hedging instruments and accounts for them ascash flow hedges.
At the inception of the hedge, the Company formally designates and documents the hedge relationshipqualifying for hedge accounting, along with its risk management objectives and its strategy forundertaking various hedge transactions. At the inception of the hedge and on an ongoing basis, theCompany evaluates whether the hedging instrument is highly effective in offsetting changes in fair values
or cash flows of the relevant hedged item.
The effective portion of changes in the fair value of derivatives that are designated and qualifying as cash
flow hedges is recognized in other comprehensive income and accumulated in equity. Accumulated othercomprehensive income is transferred to profit or loss through a line item relating to the hedged item in the
consolidated statements of income, in the periods when the cash flows from the hedged item affect profit

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SoftBank Corp. Consolidated Financial Report
For the three-month period ended June 30, 2013or loss. Any ineffective portion of changes in fair value of derivatives is recognized immediately in
profit or loss. When the hedged forecasted transaction subsequently results in the recognition of anon-financial asset or a non-financial liability, the Company removes the associated gains or losses
previously recognized in accumulated other comprehensive income and includes them in the initialamount of the cost of the non-financial asset or non-financial liability.
Hedge accounting is discontinued when the Company revokes the hedging relationship, when the hedging
instrument expires or is sold, terminated or exercised or when hedge no longer meets the criteria for hedge
accounting. When hedge accounting is discontinued, any gains or losses recognized in accumulated
other comprehensive income remains in equity and is reclassified to profit or loss when the forecasted
transaction is ultimately recognized in profit or loss. When a forecasted transaction is no longer
expected to occur, the gains or losses recognized in accumulated other comprehensive income isreclassified immediately to profit or loss.
(iii) Embedded derivatives
Derivatives embedded in non-derivative host contracts (“embedded derivatives”) are separated from thehost contracts and accounted for as separate derivatives when their economic characteristics and risks are
not closely related to those of the host contracts and the whole financial instruments, including embedded
derivatives, are not measured at FVTPL.
(e) Compound instruments
Compound instruments issued by the Company (convertible bond) are classified as liability and equity
components in accordance with their contractual arrangements. Upon initial recognition of compound
instruments, the liability component is measured based on the fair value of similar liabilities with no equity
conversion option, and the equity component is measured as the difference between the fair value of thecompound instrument as a whole and the fair value of the liability component.
Transaction costs are allocated to the liability and equity components in proportion to the initial carrying
amounts and the cost related to the equity component is deducted from equity.
Subsequent to initial recognition, the liability component is measured on an amortized cost basis using theeffective interest method. The equity component is not remeasured subsequent to initial recognition.
(f) Offsetting financial assets and financial liabilities
Financial assets and financial liabilities are offset and the net amounts are presented in the statement offinancial position when, and only when, the Company currently has a legally enforceable right to set off therecognized amounts, and intends either to settle on a net basis or to realize the assets and settle the liabilities
simultaneously.
(5) Cash and cash equivalents
Cash and cash equivalents consist of cash, demand deposits and short-term investments with maturities ofthree-months or less that are readily convertible to cash and subject to insignificant risk of change in value.
(6) Inventories
Inventories are stated at the lower of cost or net realizable value. Inventories mainly consist of mobile handsets
and accessories. Their costs comprise all costs of purchase and other costs incurred in bringing the inventories
to their present location and condition and are mainly computed on the moving-average cost basis.
Net realizable value is the estimated selling price in the ordinary course of business, less estimated costs
necessary to make the sale.
(7) Property, plant and equipment
Property, plant and equipment are measured on a historical cost basis, less accumulated depreciation andaccumulated impairment losses. Historical cost includes costs directly attributable to the acquisition of the asset
and the initial estimate of costs related to disassembly, retirement and site restoration.

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SoftBank Corp. Consolidated Financial Report
For the three-month period ended June 30, 2013

Property, plant and equipment are depreciated mainly using the straight-line method over the estimated useful
lives of each component. The depreciable amount is computed as the cost of an asset, less its residual value.
Land and construction in progress are not depreciated.
The estimated useful lives of major component of property, plant and equipment are as follows:
Buildings and structures
FUKUOKA YAFUOKU! DOME
41 years
Network center
31 - 38 years
Other
10 - 50 years
Telecommunications equipment
Wireless equipment, switching equipment, and
8 - 10 years
other network equipment
Towers30 - 42 years
Other
5 - 40 years
Other
2 - 10 years
The depreciation methods, useful lives, and residual values of assets are reviewed at the end of each fiscal year,
and applied prospectively as a change in an accounting estimate if there is such a change.
Assets held under finance leases are depreciated over their estimated useful lives when there is certainty thatownership will be obtained by the end of the lease term. However, when there is no certainty that ownershipwill be obtained by the end of the lease term, assets are depreciated over the shorter of the lease term or theirestimated useful lives.
(8) Goodwill
The measurement of goodwill upon its initial recognition is described in “3. Significant accounting policies, (2)Business combinations.” Goodwill is measured at cost less accumulated impairment losses.
Goodwill is not amortized, and tested for impairment annually or whenever there is any indication of impairment.
The Company’s policy for impairment on goodwill is described in “(11) Impairment of tangible assets, goodwill,
and intangible assets” in “3. Significant accounting policies.”
The Company's policy for goodwill arising on the acquisition of an associate is described in “(1) Basis of
consolidation” in “3. Significant accounting policies.”(9) Intangible assets
Intangible assets are measured on a historical cost basis at cost less accumulated amortization and accumulated
impairment losses.
Intangible assets acquired separately are measured at cost upon initial recognition. Intangible assets acquired in abusiness combination are recognized separately from goodwill upon initial recognition and are measured at fairvalue at the acquisition date. Any internally generated research and development expenditure is recognized as
an expense in the period in which it is incurred, except for expenditures on development activities eligible forcapitalization (internally generated intangible assets). The amount initially recognized for internally generated
intangible assets is the sum of the expenditure incurred from the date when the intangible asset first meets all of
the capitalization criteria to the date the development is completed.
Intangible assets are amortized over the estimated useful lives. Amortization of the customer relationship is
calculated by the sum-of-the-years' digits method, and other intangible assets by the straight-line method.

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SoftBank Corp. Consolidated Financial Report
For the three-month period ended June 30, 2013

The estimated useful lives of major categories of intangible assets are as follows:
Software
Software related to wireless equipment
8 - 10 years
Other
5 years
Customer relationship6 - 8 years
Game title
3 yearsOther
3 - 20 years
Amortization methods, useful lives, and residual values of assets are reviewed at the end of each fiscal year andapplied prospectively as a change in an accounting estimate if there is such a change.
(10) Leases
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks andrewards of ownership of assets to the lessee. All other leases are classified as operating leases.
The assessment of whether an arrangement is a lease or contains a lease is made on a basis of all of the facts andcircumstances at the inception of the arrangement.
(a) Finance leases(The Company as lessee)
The Company has leased assets, including the FUKUOKA YAFUOKU! DOME, wireless equipment,
switching equipment, power supply systems and transmission facilities. At the inception of lease, theCompany initially recognizes finance leases as assets and the lease obligation at the amount equal to the fairvalue of the leased property or, if lower, at the present value of the minimum lease payments.
Subsequent to initial recognition, the accounting policy for assets held under finance leases are consistent
with that of assets that are owned. Lease payments are apportioned between finance expenses and reductionof the lease obligation so as to achieve a constant rate of interest on the remaining balance of the liability.
(b) Operating leases(The Company as lessee)
Gross operating lease payments are recognized as an expense on a straight-line basis over the term of therelevant lease.
(11) Impairment of tangible assets, goodwill, and intangible assets(a) Impairment of tangible assets and intangible assets
At the end of each quarter, the Company determines whether there is any indication that its tangible andintangible assets have suffered an indication of impairment loss.
If any such indication exists, the recoverable amount of the asset is estimated. When it is not possible toestimate the recoverable amount of an individual asset, the Company estimates the recoverable amount of the
cash-generating unit to which the asset belongs. A cash-generating unit is the smallest identifiable group ofassets that generates cash inflows that are largely independent of the cash inflows from other assets or groupsof assets.
The recoverable amount is the higher of fair value less costs to sell or value in use. In assessing value in use,
the estimated future cash flows are discounted to their present value using a pretax discount rate that reflects
the time value of money and the risks specific to the asset.
If the recoverable amount of an asset or cash-generating unit is estimated to be less than its carrying amount,the carrying amount of the asset or cash-generating unit is reduced to its recoverable amount, and an
impairment loss is recognized in loss.

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SoftBank Corp. Consolidated Financial Report
For the three-month period ended June 30, 2013(b) Impairment of goodwill
Goodwill is allocated to each of the cash-generating units or groups of cash-generating units that are expected
to benefit from the synergies arising from the combination, and it is tested for impairment annually, or when
there is an indication that the cash-generating unit may be impaired. If, at the time of the impairment test,
the recoverable amount of the cash-generating unit is less than its carrying amount, the impairment loss isallocated first to reduce the carrying amount of any goodwill allocated to the cash-generating unit or groupsof cash-generating units and then to the other assets pro rata based on the carrying amount of each asset in theunit or groups of cash-generating units.
Any impairment loss for goodwill is recognized directly in loss and is not reversed in subsequent periods.
(c) Reversal of impairment
At the end of each quarter, the Company determines whether there is any indication that an impairment loss
recognized in prior years for assets other than goodwill have decreased or extinguished. If such indication ofa reversal of an impairment loss exists, the recoverable amount of the asset or cash-generating unit isestimated. If the recoverable amount of an asset or cash-generating unit is estimated to be greater than its
carrying amount, a reversal of an impairment loss is recognized, to the extent the increased carrying amount
does not exceed the lower of the recoverable amount or the carrying amount (net of depreciation andamortization) that would have been determined had no impairment loss been recognized.
(12) Retirement benefits
The Company operates defined benefit and defined contribution retirement plans for its employees.
The liability recognized in respect of the defined benefit plans (the defined benefit liability) comprises thepresent value of the defined benefit obligation at the end of the quarter.
The defined benefit obligation is determined by independent actuaries using the projected unit credit method, andits present value is determined applying a discount rate based on the yield curve of high-quality corporate bonds
over the approximate period of the benefit payments.
Defined benefit cost includes service cost, net interest on the net defined benefit liability (asset), andre-measurements of the net defined benefit liability (asset). Service cost and net interest are recognized in net
profit or loss. Net interest is determined using the discount rate described above.
In the Company, re-measurements, which comprises actuarial gains and losses, are recognized in othercomprehensive income and transferred to retained earnings immediately.
The defined benefit liability at each quarter end is based on estimated calculation with reasonable estimate,considering the actuarial calculation used at prior fiscal year end.
SoftBank Mobile Corp. and SoftBank Telecom Corp. have amended the pension plans to freeze the benefit plans
as of March 31, 2007 and 2006, respectively. The retirement benefits vested on those dates will be paid at theretirement of applicable employees. The projected benefit obligations are calculated based on these vested
retirement benefits. As a result, there is no service cost under the pension plans at SoftBank Mobile Corp. and
SoftBank Telecom Corp.
In addition, the Company participates in multi-employer defined benefit pension plans. The contributions paid
for multi-employer defined benefit pension plans are recognized as expenses in the period in which theemployees render the related service. Contributions payable are recognized as liabilities.
Defined contribution plans are post-employment benefit plans under which an employer pays fixed contributions
into a separate fund and will have no legal or constructive obligation to pay further contributions.
Contributions paid for defined contribution plan are recognized as expenses in the period in which the employees
render the related service. Contributions payable are recognized as liabilities.

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SoftBank Corp. Consolidated Financial Report
For the three-month period ended June 30, 2013(13) Provisions
Provisions are recognized when the Company has a present legal or constructive obligation as a result of a past
event, it is probable that the Company will be required to settle the obligation, and a reliable estimate can bemade of the amount of the obligation.
Provisions are measured using the estimated future cash flows, discounted using a pretax rate reflecting the timevalue of money and the specific risks of the liability, after taking into account the risks and uncertainties
surrounding the obligation at the end of the quarter.
The Company recognizes asset retirement obligations as a provision.
(14) Treasury stock
When the Company reacquires its own equity share capital (“treasury stock”), the consideration paid, including
any directly attributable increments costs (net of income taxes), is deducted from equity. No gain or loss isrecognized on the purchase, sale, or cancellation of the treasury stock. The difference between the carrying
amount and the consideration on sale is recognized as additional paid-in capital.
(15) Share-based payments
The Company has an equity-settled stock option scheme as an incentive plan for directors and employees.
Stock options are measured at fair value at the grant date. The fair value of stock options is computed mainly
using the Black-Scholes model and the Monte Carlo simulation.
The fair value of stock options determined at the grant date is expensed over the vesting period, based on theestimate of stock options that will eventually vest, with a corresponding increase in equity. The Company
regularly reviews the assumptions made and revises estimates of the number of options that are expected to vest,
when necessary.
The Company has adopted the exemption in IFRS 1 and elected not to apply IFRS 2 “Share-based Payment” fora part of share-based payments vested prior to April 1, 2012 (the date of transition to IFRSs).
(16) Revenue
The Company’s accounting policy for revenue recognition by major categories is as follows:(a) Mobile Communications service and sales of mobile handsets
The Company enters into a contract with customers directly or indirectly, mainly through dealers, to provide
mobile communications services to customers and also sells mobile handsets and accessories to dealers.
In the Mobile Communications service, revenues are mainly generated from basic monthly charges, telecom
service (“revenues from the mobile telecommunications service”) and commission fees.
The mobile telecommunications services are recognized as revenue when services are provided to customers,
based upon basic flat-rate monthly charges plus usage of traffic. Discounts are deducted from revenues
from monthly mobile telecommunications services as a discount of mobile telecommunications charges.
Points granted to customers through the customer royalty program, based on the actual charges of mobile
telecommunications services, are deferred at their fair values of benefits to be exchanged based on theestimated point utilization rate and recognized as revenues upon customers’ utilizing those points.
Activation fees are deferred upon entering into the contract and recognized as revenues over the estimatedaverage contract period. Upgrade fees are deferred upon entering into the contract and recognized asrevenues over the estimated average usage period of handsets with the customers. Direct costs related toactivation are deferred to the extent of the activation fees and upgrade fees and are amortized over the eachsame period.

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SoftBank Corp. Consolidated Financial Report
For the three-month period ended June 30, 2013

Revenues from the sale of mobile handsets and accessories are recognized when mobile handsets aredelivered to dealers, which is when with risk and economic value are deemed to be transferred. Commission
fees paid to dealers related to the sales of mobile handsets are deducted from revenues.
(b) Fixed-line Telecommunications service
In the Fixed-line Telecommunications service, revenues are generated mainly from fixed-line
telecommunications services, which consist of voice communications and digital data transmission services,
Internet provider charges, ADSL service fees, IP telephony service fees, and the usage of the network(“revenues from fixed-line telecommunications service”). Revenues from fixed-line telecommunications
services are recognized as revenues when services are provided to customers, based upon fixed monthly
charges plus the usage of the network.
(c) Internet service
In Internet service, revenues are generated mainly from premium advertising, promotion advertising,information listing service, commission of e-commerce transaction, and revenues from membership.
Revenues from premium advertising are recognized over the period in which advertisements are shown on the
web site. Revenue from promotion advertising is recognized when a user clicks on promotion advertisement.
Revenues from information listing service are recognized over the period in which these services are shownon the website. Revenues from information listing service are recognized over the period in which these
services are shown on the web site. Revenues from commissions of e-commerce transactions are recognizedwhen the transactions occur. Membership revenues are recognized over the period in which the memberships
are valid.
(17) Sales commission fees
The Company pays sales commission fees when dealers sell the Company’s mobile handsets to customers or
acquire and retain engagement of telecommunications service between the Company and customers. Commission
fees related to the sales of mobile handsets are deducted from the revenues from the sales of mobile handsets.
Commission fees related to the acquisition and retention of engagement of telecommunications service arerecognized as selling, general and administrative expenses.
(18) Income tax
Income tax expense is comprised of current and deferred taxes, and recognized in profit or loss, except for taxes
related to business combinations and taxes related to items that are recognized in other comprehensive income or
directly in equity.
Current tax is measured at the amount expected to be paid to or recovered from the taxation authorities, using the
tax rates and tax laws that have been enacted or substantively enacted by the end of the period.
Deferred tax assets are recognized to the extent that it is probable that taxable profits will be available against
which deductible temporary differences, unused tax losses, and unused tax credits can be utilized. The
recoverability of deferred tax assets are reassessed at the end of each quarter. Deferred tax liabilities arerecognized for taxable temporary differences.
Deferred tax assets and liabilities are not recognized for:・ temporary differences arising from the initial recognition of assets and liabilities in a transaction that
affects neither the accounting profit nor the taxable profit, other than in a business combination;
・ taxable temporary differences arising from the initial recognition of goodwill;・ deductible temporary differences associated with investments in subsidiaries and associates, where it is notprobable that the temporary difference will reverse in the foreseeable future or where there will not be
sufficient taxable profits against which to utilize the benefits of the temporary differences; and・ taxable temporary differences associated with investments in subsidiaries and associates, where theCompany is able to control the reversal of the temporary difference and it is probable that the temporary
difference will not reverse in the foreseeable future.

36

SoftBank Corp. Consolidated Financial Report
For the three-month period ended June 30, 2013

Deferred tax assets and liabilities are measured at the tax rates that are expected to apply to the period when theasset is realized or the liability is settled, based on tax laws that have been enacted or substantively enacted by
the end of the quarter.
Deferred tax assets and liabilities are offset if the Company has a legally enforceable right to set off current tax
assets against current tax liabilities, and income taxes are levied by the same taxation authority on the same
taxable entity.
Income tax expense recorded in the respective interim period is calculated based on the estimated effective tax
rate.
(19) Earnings per share
Basic earnings per share is computed by dividing net income attributable to owners of the parent by theweighted-average number of common stocks outstanding for the period.
Diluted earnings per share assumes full conversion of the issued potential stocks having a dilutive effect, with an
adjustment for net income attributable to owners of the parent and the weighted-average number of common
stocks outstanding for the period.

4. Significant judgments and estimates
In preparing condensed interim consolidated financial statements under IFRSs, management makes judgments,
estimates, and assumptions that affect the application of accounting policies and carrying amounts of assets, liabilities,
revenue, and expenses. These estimates and underlying assumptions are based on the management’s best judgments,
through their evaluation of various factors that were considered reasonable as of the period-end, based on historicalexperience and by collecting available information. By the nature of its estimates or assumptions, however, actual
results in the future may differ from those estimates or assumptions.
Estimates and underlying assumptions are continuously reviewed. Revisions to accounting estimates are recognizedin the period in which the estimate is revised as well as in the future periods. Estimates and underlying assumptions
that involve significant risks in making material adjustments to the carrying amounts of assets and liabilities in thenext period include the following:・Estimates of fair value of assets acquired and the liabilities assumed in a business combination ((2) of Note “3.
Significant accounting policies”)
・Fair value measurement of available-for-sale financial assets ((4) of Note 3)
・Estimates of forecasted transactions related to hedge accounting ((4) of Note 3)
・Estimates for amortization period and impairment of financial assets measured at amortized cost ((4) of Note 3
and Note “11. Finance cost, net”)
・Fair value measurement of derivatives (including embedded derivatives) ((4) of Note 3 and Note 11)
・Estimates of useful life of property, plant and equipment and intangible assets ((7) and (9) of Note 3)
・Estimates for impairment of property, plant and equipment, goodwill and intangible assets ((11) of Note 3)・Assessment of recoverability of deferred tax assets ((18) of Note 3)37

SoftBank Corp. Consolidated Financial Report
For the three-month period ended June 30, 2013

5. Business combination
For the three-month period ended June 30, 2013
GungHo Online Entertainment, Inc.
(1) Overview of consolidation
Masayoshi Son, chairman and CEO of the SoftBank Corp., has entered into a Memorandum of Understanding on
Exercise of Voting Rights for Deferment of Execution of Pledges (the “MOU”) with respect to the shares of
GungHo Online Entertainment, Inc. (“GungHo“) on April 1, 2013, with Heartis Inc. (the “Heartis”; percentage ofvoting interest: 18.5%), which is the second largest shareholder of GungHo and Taizo Son’s asset managementcompany and of which Taizo Son, chairman of GungHo, is the representative director. Under the MOU, in orderto have Son Holdings Inc., of which Masayoshi Son is a director and which is a Masayoshi Son’s asset
management company, defer the execution of pledges over the shares of GungHo held by Heartis, Heartis has
agreed, effective as of April 1, 2013, to the effect that at the shareholders meeting of GungHo, Heartis will
exercise the voting rights for all of the shares of GungHo it holds in accordance with Masayoshi Son’s directions.
Also, a subsidiary of the Company, SoftBank Mobile Corp., undertook the Tender Offer from April 1, 2013 toApril 26, 2013 and acquired 6.37% of GungHo shares (purchase price: ¥24,976 million). The Company andHeartis together came to represent the majority of the voting rights in GungHo's shares (percentage of votinginterest: 58.50%) and GungHo Online Entertainment became a subsidiary of the Company from an equity method
associate.
With this transaction, the Company expects that the Company will be able to enhance mobile content, and to
improve the efficiency in operation of the mobile communications business and profitability competitiveness, by
combining smartphone-focused development capability and infrastructure held by the Company, and planning andcreating capability in the smartphone game industry held by GungHo.
（Business Description）(a) Plan, development, operation and distribution of Internet online game(b) Plan, development and sales of mobile content(c) Plan, development and sales of character goods(d) Plan, development and distribution of other entertainment content（Acquisition date）
April 1, 2013
(2) Consideration transferred and the components（Millions of yen）

Payment amount
Fair value of equity interest in GungHo already held at
the time of the acquisition
Total consideration

Acquisition date
(April 1, 2013)
24,976
153,620a

178,596¥109 million of acquisition-related costs arising from the business combination is recognized in “Selling, generaland administrative expenses.”38

SoftBank Corp. Consolidated Financial Report
For the three-month period ended June 30, 2013

As a result of the re-evaluation of 33.63% in equity interest already held at the time of the acquisition of control
by the Company in GungHo at fair value on the acquisition date, the Company recognized a gain on the step
acquisition of ¥150,120 million. This gain is presented as “Income from re-measurement relating to businesscombination” in the condensed interim consolidated statements of income.
（3）Fair values of assets, liabilities, non-controlling interests and goodwill on the acquisition date（Millions of yen）

Acquisition date
(April 1, 2013)
36,90380,814
4,511

Current assets
Intangible assets
Other non-current assets
Total assets

122,228

Current liabilities
Non-current liabilities

10,89729,949Total liabilities

40,846b81,382c

48,818a-(b-c)146,032

Net assets
Non-controlling interests
Goodwill

Non-controlling interests are measured based on the proportionate interests after the acquisition in theidentifiable net assets of the acquiree at acquisition date.
Goodwill reflects excess earning power expected from the future business development and assembled
workforce for game development and others, and the synergy with existing businesses.
(4)

Net cash outflow from the acquisition of control over a subsidiary（Millions of yen）

Payment for the acquisition by cash
Cash and cash equivalents held by the acquiree at the time ofacquisition of control
Decrease in cash from the acquisition of control over thesubsidiary(5)

Acquisition date
(April 1, 2013)(24,976)
11,025(13,951)

Sales and net income of the acquiree
The amount of the acquiree’s sales after the acquisition date is ¥43,717 million and net income after theacquisition date is ¥11,839 million, which are recorded in the condensed interim consolidated statements ofincome for the three-month period ended June 30, 2013.

39

SoftBank Corp. Consolidated Financial Report
For the three-month period ended June 30, 2013

6. Segment information(1) Description of reportable segments
The Company’s reportable segments are components of business activities for which discrete financial information
is available, and such information is regularly reviewed by the Company’s board of directors in order to makedecisions about the allocation of the resources and assess its performance.
The Company’s segments are separated based on the products and services provided, reported by the threesegments, “Domestic Mobile Communications,” “Domestic Fixed-line Telecommunications,” and “Internet.”“Domestic Mobile Communications” business provides, mainly through SoftBank Mobile Corp., mobile
communication services, and sale of mobile phones and accessories accompanying the services.
“Domestic Fixed-line Telecommunications” business provides, mainly through SoftBank Telecom Corp.,
high-speed Internet connection service for corporate customers, and other services relevant to telecommunication
service. It also provides, mainly through SoftBank BB Corp., broadband service for individual customers.
“Internet” business provides, mainly through Yahoo Japan Corp., Internet-based advertising operations.
The Company previously had four segments, “Mobile Communications,” “Broadband Infrastructure,” “Fixed-line
Telecommunications,” and “Internet Culture” by the year ended March 31, 2013.
In addition to the consolidation of eAccess Ltd. (“eAccess”) in January 2013 and GungHo in April 2013, theCompany acquired Sprint Nextel Corporation (“Sprint”) in July 2013. Accordingly, the Company changed its
reportable segments from the three-month period ended June 30, 2013 as the business size and region of theCompany will change significantly.
Previous “Fixed-line Telecommunications” and “Broadband Infrastructure” are integrated and included in“Domestic Fixed-line Telecommunications.” Also previous “Mobile Communications” is presented as“Domestic Mobile Communications” and previous “Internet Culture” is presented as “Internet.” Distribution
business of SoftBank BB Corp. was previously included in “Others,” However it is now included in “Domestic
Mobile Communications,” considering the stronger connection with mobile communications.
Segment information for the three-month period ended June 30, 2012 is presented in accordance with thereportable segment after the change.
(2) Net sales and income of reportable segments
The accounting policies of the reportable segments are the same as the Company's accounting policies described in“3. Significant accounting policies.” Income of reportable segments is based on income excluding “Income fromre-measurement relating to business combination” and “Other operating income (loss)” from operating income asfollows:
Segment income = (net sales – cost of sales – selling, general and administrative expenses) in each segment
Intersegment transactions are conducted under the same general business conditions as applied for externalcustomers.
The following is the information about the Company’s net sales and income by reportable segments. The
Company also discloses “EBITDA (segment income before depreciation and amortization)” by reportablesegments.

40

SoftBank Corp. Consolidated Financial Report
For the three-month period ended June 30, 2013

For the three-month period ended June 30, 2012
(Millions of yen)Domestic
MobileCommunications
Net sales
Customers
Intersegment
Total
EBITDA
Depreciation and amortization
Segment income
Income from re-measurement
relating to businesscombination
Other operating income (loss)
Operating income
Finance cost, net
Equity in income of associates
Income before income tax

Reportable segments
Domestic
Fixed-line
Telecommunications Internet

Total

Others1

Reconciliations 2

Consolidated

518,501

107,369

80,182706,052

19,892-725,944

3,713

20,566755

25,0348,300(33,334)-

522,214

127,935

80,937731,086

28,192(33,334)

725,944

198,274

40,33742,608281,219

2,572(3,052)

280,739(59,693)(12,603)(3,171)(75,467)(1,549)(407)(77,423)

138,581

27,73439,437205,752

1,023(3,459)203,316

203,316(9,405)
2,088
195,999

Notes:
1. “Others” includes Fukuoka SoftBank HAWKS-related business.
2. “Reconciliations” includes an elimination of intersegment transactions and the corporate general expenses unallocated to eachreportable segment.

For the three-month period ended June 30, 2013
(Millions of yen)

Reportable segments
Domestic
Domestic
MobileFixed-line
Commu- Telecommunications
nicationsInternet
Net sales
Customers
Intersegment
Total
EBITDA
Depreciation and amortization
Segment income
Income from re-measurement
relating to businesscombination
Other operating loss
Operating income

Total

Others 1

Reconciliations 2

Consolidated

657,227
4,691

106,874
26,532

95,495703

859,596
31,926

21,473
9,102(41,028)

881,069-

661,918

133,406

96,198891,522

30,575(41,028)

881,069

255,826(83,367)

42,881(14,809)49,850(3,221)

348,557(101,397)

2,938(1,587)(6,319)(315)

345,176(103,299)

172,459

28,072

46,629247,160

1,351(6,634)

241,877

150,120(972)
391,025

Finance cost, net(38,926)(1,083)Equity in loss of associates
Income before income tax

351,016

Notes:
1. “Others” includes Fukuoka SoftBank HAWKS-related business.
2. “Reconciliations” includes an elimination of intersegment transactions and the corporate general expenses unallocated to eachreportable segment

41SoftBank Corp. Consolidated Financial Report
For the three-month period ended June 30, 2013

7. Property, plant and equipment
The components of property, plant and equipment are as follows:(Millions of yen)

As ofApril 1, 2012
Buildings and structures
Telecommunications equipment
Land
Construction in progress
Other
Total

As of
March 31, 2013

As ofJune 30, 2013

110,811

118,284

120,290

1,039,699

1,412,580

1,479,893

72,53673,93073,94691,945

153,266

136,667

62,19472,55579,363

1,377,185

1,830,615

1,890,159

8. Intangible assets
The components of intangible assets are as follows:(Millions of yen)

As ofApril 1, 2012
Software
Customer relationship 1
Game title 2
Other
Total

As of
March 31, 2013

As ofJune 30, 2013

310,755

411,285

430,931-

83,87678,534--71,31329,56829,732

24,920340,323

524,893605,698

Notes:
1. As a result of consolidation of eAccess in January 2013, the Company recognized customer relationship amounting to ¥84,684
million. The details of the acquisition are described in “(8) Notes to the differences in the scope of consolidation” in “14.
First-time adoption of IFRSs.”
2. As a result of consolidation of GungHo in April 2013, the Compnay recognized Game title amounting to ¥77,796 million. The
details of the acquisition are described in “5. Business Combination.”

42

SoftBank Corp. Consolidated Financial Report
For the three-month period ended June 30, 2013

9. Interest-bearing debt
(1) Components of interest-bearing debt
The components of “Interest-bearing debt” in the condensed interim consolidated statements of financial
position are as follows:(Millions of yen)

As ofApril 1, 2012
Current
Short-term borrowings
Commercial paper
Current portion of long-term borrowings
Current portion of corporate bonds
Current portion of lease obligations
Current portion of installment payables
Total
Non-current
Long-term borrowings
Corporate bonds
Lease obligations
Preferred securities
Installment payables
Total

As of
March 31, 2013

As ofJune 30, 2013

114,625
496,073
142,686
157,302
15,985458,313631,232
204,837
192,658
47,088

540,654
55,000645,002
224,772
210,618
49,845926,671

1,534,128

1,725,891

619,517458,520431,722
195,920

510,856
791,919564,077
197,468

503,578
1,466,488
616,253
197,890

57,594

109,405

107,594

1,763,273

2,173,725

2,891,803(2) Components of (decrease) increase in short-term interest-bearing debt
The components of “(decrease) increase in short-term interest-bearing debt, net” in the condensed interim
consolidated statements of cash flows are as follows:（Millions of yen）

Net (decrease) increase of short-term borrowings
Net increase of commercial paper
Total

43

Three-month period
ended June 30, 2012

Three-month period
ended June 30, 2013

(2,489)-76,07255,000(2,489)131,072

SoftBank Corp. Consolidated Financial Report
For the three-month period ended June 30, 2013

(3) Components of proceeds from long-term interest-bearing debt
The components of “Proceeds from long-term interest-bearing debt” in the condensed interim consolidated
statements of cash flows are as follows:（Millions of yen）

Three-month period
ended June 30, 2012

Three-month period
ended June 30, 2013

86,32993,359-724,382

103,008

126,310

189,337

944,051

Proceeds from long-term borrowings
Proceeds from issuance of corporate bonds1
Proceeds from sale and leaseback of equipment newly
acquired
Total

Note:
1. Corporate bonds issued for the three-month period ended June, 30 2013 are as follows:
Total amountof issuanceInterest
rate

April 23, 2013

$2,485 million¥244,176 million 2

4.50%
3.29% 3

April 15, 2020

Euro-denominated Senior Notes
due year 2020

April 23, 2013€625 million¥80,206 million 2

4.63％
4.05％3

April 15, 2020

43rd Unsecured Straight Corporate
Bond

June 20, 2013

¥400,000 million

1.74%

June 20, 2018

Name of bond
USD-denominated Senior Notes
due year 2020

Date of issuance

Date of maturity

Notes:
2. Cash outflow amount, fixed by the interest currency swap contract designated as a cash flow hedge, at the time of redemption, is
described in JPY.
3. The interest rate, after considering the impact of converting the fixed interest rate in foreign currency into a fixed interest rate in
JPY by the interest currency swap contract, designated as a cash flow hedge, is described.

(4) Components of repayment of long-term interest-bearing debt
The components of “Repayment of long-term interest-bearing debt” in the condensed interim consolidated
statements of cash flows are as follows:（Millions of yen）

Repayment of long-term borrowings
Redemption of corporate bonds*
Repayment of lease obligations
Repayment of installment payables
Total

Three-month period
ended June 30, 2012

Three-month period
ended June, 30 2013

(81,665)(87,944)-(25,000)(45,117)(4,912)(50,836)(17,208)(131,694)(180,988)

Note:*Corporate bond redeemed for the three-month period ended June, 30 2013 is as follows:

Name of bond
31st Unsecured Straight Corporate
Bond

Amount of redemption

Date of issuance
June 2, 2010

¥25,000 million

44

Interest
rate

Date of redemption

1.17％

May 31, 2013

SoftBank Corp. Consolidated Financial Report
For the three-month period ended June 30, 2013

10. Equity(1) Additional paid-in capital
For the three-month period ended June 30, 2012
Alibaba Group Holding Limited, an associate accounted for using the equity method, acquired the shares of
Alibaba.com Limited, a subsidiary of Alibaba Group Holding Limited, through its takeover bid in June 2012 andconducted the privatization of Alibaba.com Limited. The Company’s additional paid-in capital decreased by¥51,208 million as Alibaba Group Holding Limited treated this as the change in the interests in controlled subsidiary,
decreasing its additional paid-in capital.

(2) Accumulated other comprehensive income
The components of accumulated other comprehensive income are as follows:(Millions of yen)

As ofApril 1, 2012
Available-for-sale financial assets
Cash flow hedges
Exchange differences on translating foreign operations
Total

As of
March 31, 2013

As ofJune 30, 2013

46,42750,70074,173(994)

114,158

139,052-

83,168112,055

45,433

248,026

325,280

11. Finance cost, net
The components of finance income and costs are as follows:(Millions of yen)Three-month period ended
June 30, 2012

Interest income1
Interest expense
Derivative loss1,2,3
Other
Total

Three-month period ended
June 30, 2013

227

17,336(12,661)(27,383)(1,539)(29,439)

4,568

560

(9,405)(38,926)

Notes:
1.Stock acquisition rights in the convertible bonds issued by Sprint and undertaken by a Company’s subsidiary,
Starburst II, Inc. (“New Sprint”), on October 22, 2012 is reported at fair value as a derivative, being bifurcated fromthe host contracts as it is classified as embedded derivatives.
As the acquisition of Sprint by the Company received approval at the shareholders’ meeting of Sprint on June 25,
2013, no value was ascribed to the embedded derivative. Accordingly, the Company recorded a derivative loss of¥16,356 million during the three-month period ended June 30, 2013.
With regards to the host contract (the bonds), the amount of payment less the fair value of the embedded derivative
at inception of the bond is recorded in the consolidated statement of financial position at inception. This deduction
amount is accreted using the effective interest method with corresponding adjustments to interest income. Initially,
the expected remaining accretion period for the bond discount was 7 years based on the contract term of the bond.
However, based on the approval at the shareholders’ meeting of Sprint, the Company changed the estimate of the
expected remaining term. Accordingly, during the three-month period ended June 30, 2013, the Company
recognized interest income of ¥16,153 million. An increase to interest income from the reflection of this change inthe expected remaining term of the bond is ¥15,568 million.

45

SoftBank Corp. Consolidated Financial Report
For the three-month period ended June 30, 2013

2. The Company has entered into a foreign currency forward contract for the acquisition of Sprint. As for certain
contracts that do not meet the criteria for the hedge accounting, and therefore hedge accounting is not applied to, aderivative loss ¥16,950 million was recognized for the three-month period ended June 30, 2013.
3. Derivatives associated with the transactions for the acquisition of Sprint are as follows. Derivative financial assets
and derivative financial liabilities are included in “Other financial assets” or “Other financial liabilities” in thecondensed interim consolidated statements of financial position respectively.

Derivative to which hedge accounting is applied（Millions of yen）

As ofApril 1, 2012
Contract
amounts(Over oneFair value
year)
Foreign exchange contracts
To buyU.S. dollars

As ofMarch 31, 2013
Contract
amounts(Over oneFair value
year)

-

-

-

-

Total

1,411,990(-)
1,411,990
(-)

As of
June 30, 2013
Contract
amounts(Over oneFair value
year)

189,357
189,357

1,411,767(-)
1,411,767(-)

269,575
269,575

Derivatives to which hedge accounting is not applied（Millions of yen）

As ofApril 1, 2012
Contract
amounts(Over oneFair value
year)

As of
March 31, 2013
Contract
amounts(Over oneFair value
year)

Foreign exchange contracts
To buyU.S. dollars

-

-

-

Embedded derivatives
Stock acquisition rights

-

-

-

-

291,555(291,555)
291,555(291,555)

Total

46

As of
June 30, 2013
Contract
amounts(Over oneFair value
year)

-

15,706
15,706

153,173(-)

305,629(305,629)
458,802(305,629)(5,319)(5,319)

SoftBank Corp. Consolidated Financial Report
For the three-month period ended June 30, 201312. Supplemental information to the condensed interim consolidated statements of cash flows(1) Scope of purchase of property, plant and equipment and intangible assets“Purchase of property, plant and equipment and intangible assets” includes cash outflows from purchasing
long-term prepaid expenses that are included in other non-current assets in the condensed interim consolidated
statements of financial position.
(2) Presentation of cash flow regarding finance lease
Once the Company purchases telecommunications equipment for the purpose of assembly, installation andinspection, the Company sells the equipment to lease companies for sale and leaseback purposes. The leased
asset and lease obligation are recorded in the consolidated statement of financial position.
The cash outflows from the purchase of the equipment from vendors are included in “Purchase of property, plantand equipment and intangible assets" under cash flows from investing activities, and the cash inflows from thesale of the equipment to lease companies are included in “Proceeds from long-term interest-bearing debt" undercash flows from financing activities.

(3) Payments for preferred stocks, stock acquisition rights, and long-term debt of subsidiaries.
For the three-month period ended June 30, 2012
In April 2006, BB Mobile Corp. issued Class 1 preferred stock-series 1 and stock acquisition rights to Vodafone
International Holdings B.V. and obtained a subordinated loan from Vodafone Overseas Finance Limited as aseries of financing transactions for the Company’s acquisition of Vodafone K.K. (currently SoftBank Mobile
Corp.). In November 2006, refinancing of the funds for the acquisition was conducted, and SoftBank Mobile
Corp. assumed BB Mobile Corp’s subordinated loan.
In December 2010, The Company acquired aforementioned all Class 1 preferred stock-series 1 and stockacquisition rights issued by BB Mobile Corp. to Vodafone International Holdings B.V., and all principal andaccrued interest of a long-term loan receivable from SoftBank Mobile Corp. held by Vodafone Overseas Finance
Limited for a total amount of ¥412,500 million. ¥212,500 million out of the total amount and the remaining
amount of ¥200,000 million were paid with related expenses associated with the acquisition in December 2010
and April 2012, respectively.

13. Significant subsequent events
For the three-month period ended June 30, 2013
(1) Consolidation of Sprint(a) Overview of consolidation
On October 15, 2012, the Company and Sprint entered into a series of definitive agreements under which theCompany will invest in Sprint (the “transaction”). After completion of negotiations, the Company and Sprint
agreed to amend a portion of the transaction on June 11, 2013.
On July 10, 2013, SoftBank Corp. capitalized, through a subsidiary, Starburst I, Inc. (“HoldCo”), New Sprint
with an additional approximately $18.5 billion and merged Starburst III, Inc., a subsidiary of New Sprint,
with and into Sprint, with Sprint being the surviving entity. Then New Sprint and Sprint were renamed as
Sprint Corporation and Sprint Communications, Inc. respectively. The total investment of SoftBank Corp.
amounted to approximately $21.6 billion (approximately ¥1.8 trillion), including $3.1 billion of stockacquisition rights for corporate bonds of Sprint (the “Bond”) invested by New Sprint on October 22, 2012.
Of the invested amounts, approximately $16.6 billion was distributed to existing individual Sprint
shareholders and $5 billion will be used to strengthen Sprint.

47

SoftBank Corp. Consolidated Financial Report
For the three-month period ended June 30, 2013

Through this transaction, approximately 72% of Sprint shares were acquired for $7.65 per share in cash, andthe remaining shares were converted into New Sprint shares on a one-to-one basis, which were listed on the
New York Stock Exchange. Also, the Bond held by New Sprint was converted into Sprint shares.
As a result of the transaction, SoftBank Corp., through its HoldCo., owns approximately 78% of the shares(as used herein, on a fully diluted basis, not giving effect to out-of-the-money options) of New Sprint, withSprint becoming a subsidiary of SoftBank Corp.
Prior to the transaction, Clearwire Corporation (“Clearwire”), a company providing high-speed wirelesscommunication services in the US, became a wholly owned subsidiary of Sprint on July 9, 2013.
Post-transaction Structure(b) Purposes of consolidation(i) Enables the Company to establish an operating base as one of the largest mobile Internet companies in theworld. The combined subscriber base will be one of the largest between the U.S. and Japan*.
(ii) Enables the Company to leverage its deep expertise in smartphones and next-generation mobile networks, andits track record of success in competing in mature markets with large incumbents, to enhance Sprint’s
competitiveness in the U.S.
(iii) Provides Sprint $5.0 billion of new capital for its mobile network, strategic investments, and balance sheet aspart of its continued efforts to fortify its operating base towards future growth.
Note:*Based on Telecommunications Carriers Association (“TCA”) data and disclosed material by relevant companies
as of the end of June 2013.

48

SoftBank Corp. Consolidated Financial Report
For the three-month period ended June 30, 2013(c) Outline of New Sprint, Sprint and Clearwire(i) New Sprint

Name

Sprint Corporation

Address

6200 Sprint Parkway, Overland Park, Kansas

Name and title ofrepresentative

Dan Hesse , Chief Executive Officer and Director

Business description

Holding company.
Provision of telecommunications services through its operating
subsidiaries.

Note

The Chairman of the Board and the Vice Chairman of the Board will
be assumed by Masayoshi Son, the Chairman & CEO of SoftBank
Corp. and Ronald Fisher, Director of SoftBank Corp., respectively.
Adm. Mike Mullen, former Chairman of the Joint Chiefs of Staff, hasbeen appointed as the Director in charge of security.

(ii) Sprint
Name

Sprint Communications, Inc.

Address

6200 Sprint Parkway, Overland Park, Kansas

Name and title ofrepresentative

Dan Hesse, President

Business description

Holding company.
Provision of telecommunications services through its operating
subsidiaries.

Consolidated net sales$35,345 million（the fiscal year ended December 2012/USGAAP）(iii) Clearwire
Name

Clearwire Corporation

Address

6200 Sprint Parkway, Overland Park, Kansas

Name and title ofrepresentative

Steve Elfman, President

Business description

Holding company.
Provision of high-speed wireless communication services through its
operating subsidiaries.

Consolidated net sales$1,265 million（the fiscal year ended December 2012/USGAAP）(d) Acquisition date, total amount invested, acquisition costs, and percentage of voting interest of Sprint
Acquisition dateJuly 10, 2013

Total amount invested

Approx. $21.6 billion

Acquisition costs

To be determined

Percentage of voting interest

Approx. 78.0％（on a fully-diluted basis）

49(approx.¥1.8 trillion）

SoftBank Corp. Consolidated Financial Report
For the three-month period ended June 30, 2013(e) Drawdown of the bridge loan
On July 10, 2013, the Company borrowed ¥1,034.9 billion in accordance with the bridge loan agreement (the“Loan Agreement") (the maximum total amount of borrowing was reduced in March 2013), which was enteredinto on December 18, 2012 with financial institutions, in order to procure the required funds for the transaction.
The total amount of borrowings became ¥1,284.9 billion as ¥250 billion was already borrowed on December 21,
2012 by the Loan Agreement. These borrowings are expected to be refinanced with mid- and/or long-term
financings.
On June 24, 2013 the collateral was released and guarantors for the borrowings were partially amended.
Summary of the Bridge Loan
Borrower

SoftBank Corp.

Mandated lead arrangers(MLAs)

Mizuho Corporate Bank, Ltd. (currently, Mizuho Bank, Ltd.)
Sumitomo Mitsui Banking Corporation
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
Deutsche Bank AG, Tokyo Branch

Date of contract

December 18, 2012

Total amount ofborrowings¥1, 284.9 billion（Breakdown） Facility A: ¥250 billion
Facility B: ¥1,034.9 billion

Loan drawdown date

Facility A: December 21, 2012
Facility B: July 10, 2013

Use of loan proceeds

Facility A: Investment in Sprint in the form of the Bond (restore balance of
cash on hand used for the investment in Sprint in the form of for the Bond in
October 2012)
Facility B: Investment in and resulting acquisition of Sprint

Maturity

December 17, 2013

Collateral

None

Guarantors

SoftBank Mobile Corp. and SoftBank Telecom Corp.

(f) Fair values of assets and liabilities and goodwill on the acquisition date
Assets received and liabilities undertook are not determined yet as the fair value on the acquisition date is underevaluation.

(2) Consolidation of WILLCOM, Inc.
(a) Overview of consolidation
The Company owns 100% of shares issued by WILLCOM, Inc. (“WILLCOM”). However WILLCOM
was in the process of rehabilitation under the Corporate Reorganization Act and the Company did not haveeffective control over WILLCOM. Therefore, WILLCOM was not treated as a subsidiary.
WILLCOM made prepayments of rehabilitation claims and rehabilitation security interests in June 2013 andfiled a petition with the Tokyo District Court for the termination of its rehabilitation proceedings.
WILLCOM received an order of termination of rehabilitation proceedings from the Tokyo District Court on
July 1, 2013. Consequently, WILLCOM became a subsidiary of the Company.

50

SoftBank Corp. Consolidated Financial Report
For the three-month period ended June 30, 2013

Fair value of WILLCOM shares, already held by the Company at the time of the acquisition of control andre-evaluteatd on the acqusition date, is ¥104.1 billion. As a result, the Company expects to recognize a gainof ¥103.8 billion, which is the difference between the fair value and the initial acquisition price. This
income will be included in “Income from re-measurement relating to business combination” in the condensed
interim consolidated statement of income for the period ending September 30, 2013.
(b) Outline of WILLCOMName

WILLCOM, Inc.

Address

Tokyo Shiodome Bldg. 1-9-1 Higashi-shimbashi, Minato-ku,
Tokyo

Name and title of representative

Ken Miyauchi, Representative director & president

Business description

Telecommunication businessStated capital¥150 million

Date of foundation

July 1, 1994(c) Acquisition dateJuly 1, 2013(d) Fair values of assets and liabilities and goodwill on the acquisition date
Assets received and liabilities undertook are not determined yet as the fair value on the acquisition date isunder evaluation.

14. First-time adoption of IFRSs(1) Transition to IFRSs financial reporting
The Company first prepared condensed interim consolidated financial statements in accordance with IFRSs from thethree-month period ended June 30, 2013, which is the first quarter of the fiscal year ending March 31, 2014.
Accounting policies adopted by the Company are described in “3. Significant accounting policies.”
The latest consolidated financial statements prepared in accordance with JGAAP are for the year ended March 31,
2013. The date of transition to IFRSs is April 1, 2012.
IFRS 1, in principle, requires first-time adopters to apply IFRSs retrospectively.
However, as exceptions, the retrospective application of some aspects of IFRSs is prohibited, and they shall beapplied prospectively from the date of transition to IFRSs. The following exceptions are applicable to theCompany:(a) Accounting estimates
With regards to accounting estimates used for consolidated financial statements in accordance with IFRSs, newinformation received afterward is not reflected, for the estimates used under IFRSs to be consistent withestimates used when the financial statements under JGAAP were prepared.
(b) Non-controlling interests
The Company applies the following requirements of IFRS 10 “Consolidated Financial Statements” prospectively
from the date of transition to IFRSs:･ the requirement that total comprehensive income is attributed to the owners of the parent and to thenon-controlling interests even if this results in the non-controlling interests having a deficit balance; and･ the requirements for accounting for changes in a subsidiary that do not result in a loss of control.
IFRSs also grant first-time adopters to voluntarily elect to use exemptions from some requirements of IFRSs. The
Company applied the following exemptions:51

SoftBank Corp. Consolidated Financial Report
For the three-month period ended June 30, 2013(a) Business combinations
The Company has elected not to apply IFRS 3.“Business Combinations,” retrospectively to businesscombinations that occurred before the date of transition to IFRSs.
(b) Translation differences for foreign operations
The Company has transferred all cumulative translation differences from other comprehensive income toretained earnings on the date of transition to IFRSs.
(c) Share-based payments
The Company does not apply IFRS 2 “Share-based Payment” to a portion of stock options that were vested
before the date of transition to IFRSs.
(d) Compound instruments
The Company does not apply IAS 32 “Financial Instruments: Presentation” to the compound instruments withno outstanding liability balance at the date of transition to IFRSs.
The Company has made necessary adjustments to the consolidated financial statements prepared in accordance with
JGAAP that had already been disclosed, in the course of the preparation of the consolidated financial statements inaccordance with IFRSs.
Reconciliations required to be disclosed under the first-time adoption of IFRSs are as follows:
Items that do not affect retained earnings and comprehensive income are included in “Reclassification” of thereconciliation. Differences in the scope of consolidation under IFRSs from JGAAP are included in “Differences inthe scope of consolidation.” Items that affect retained earnings or comprehensive income are included in“Differences in recognition and measurement.”
The amounts presented in the consolidated financial statements prepared in accordance with JGAAP for the years
ended on or before March 31, 2013, were rounded down to the nearest million yen. As the amounts presented in
the condensed interim consolidated financial statements prepared in accordance with IFRSs for the three-month
period ended June 30, 2013, are rounded off to the nearest million yen, the amounts under JGAAP presented in thereconciliations are also rounded off to the nearest million yen.

52

SoftBank Corp. Consolidated Financial Report
For the three-month period ended June 30, 2013

(2) Reconciliation of equity as of April 1, 2012
(Items related to consolidated statement of financial position)(Millions of yen)
Presentation
under JGAAP

JGAAPReclassification

Differences in Differences inthe scope of recognition andconsolidation
measurement Notes

Presentation
under IFRSs

IFRSs

AssetsCurrent assets
Cash and deposits
Notes and accounts
receivable - tradeMarketablesecurities

1,016,252(1,693)

6,554-

661,288(35,571)(2,560)163,745

4,575(4,575)---

10,399--10,399Other financial
assets

13,065--55,683Inventories(56,469)---(93,391)

2,690

7,450

39,015---(129,220)6,684

171,195

1,959,111

Merchandise and42,618finished products
Deferred tax assets
56,469Other current assets
168,265
Less: Allowance for
doubtful(39,015)
accounts
Total current assets
1,910,452
Fixed assets
Property andequipment, net
Intangible assets,
net:
Goodwill
Software
Other intangibles
Investments andother assets
Investment
securities

1,021,113
ED

786,90285,014

1,296,393-

22,07658,716B, I

1,377,185

780,243-

1,211(3,543)

A

777,911

310,151(310,151)---

36,121

310,151641(6,590)340,323

338,198(338,198)---

201,465

7,292

(231)

G

208,526

185,040(22,081)

155,640E

318,599

Deferred tax assets

104,327

56,469-22,613

Other assets

134,077(64,264)

77

15,600Less:
Allowance for
doubtful accounts(15,957)

15,957---

Total fixed assets

2,983,553

56,4699,216

242,205

3,291,443

Deferred charges

5,700

-

21

(5,721)-

4,899,705(72,751)

15,921

407,679

5,250,554

Total assets

AssetsCurrent assets
Cash and cash
equivalents
Trade and otherreceivables

183,409
D,I

Note: Described in “(9) Notes to the differences in recognition and measurement” on page 68.

53

85,490

Other current assets

Total current assets
Non-current assets
Property, plant andequipment

Goodwill
Intangible assets

Investments
accounted forusing the equity
methodOther financial
assetsDeferred tax assets
Other non-current
assetsTotal non-current
assetsTotal assets

SoftBank Corp. Consolidated Financial Report
For the three-month period ended June 30, 2013

(Millions of yen)
Presentation
under JGAAP

JGAAPReclassification

Differences inthe scope of
consolidation

Differences inrecognition andmeasurement

Notes

Presentation
under IFRSs

IFRSs

Liabilities
Current liabilities

Accounts payable trade
Short-term borrowings
Current portion of
corporate bonds
Accounts payableother and accrued
expenses

716,824-

209,847E,I

926,671

190,533

747,461

22,65015,188D

975,832

403,168(403,168)---

144,988(144,988)---

835,053(835,053)

-

-

-

1,206

-

-

1,206

Income taxes payables

125,116(2,614)

5

706

123,213

Current portion oflease obligations

152,683(152,683)

-

-

-

1,456

-

-

1,456

Other current liabilities

72,184(1,191)

174

22,988

Total current liabilities

1,923,725(72,750)

22,829248,729

D,F

94,155
2,122,533

Long-term liabilities

Corporate bonds
Long-term debt

Liability for retirement
benefits
Deferred tax liabilities
Allowance for point
mileage
Lease obligations
Other liabilities

1,425,264-

338,009459,900(459,900)---

560,070(560,070)

-

-

-

9,711

26,0691,390

37,170---14,953

20,60340-

20,643

20,370-(313)

25,29445,351

32,074(32,074)---

347,700(347,700)---

14,953E,I

105,273(55,835)(9,999)40,146

Total long-term
liabilities

1,540,340(1)

15,797

404,839

1,960,975

Total liabilities

3,464,065(72,751)

38,626

653,568

4,083,508

Note: Described in “(9) Notes to the differences in recognition and measurement” on page 68.

54

D,F

1,763,273

79,585

Liabilities andequityCurrent
liabilities
Interest-bearing
debt
Trade and otherpayablesOther financial
liabilities
Income taxes
payablesProvisions
Other current
liabilities
Total current
liabilities
Non-current
liabilities
Interest-bearing
debt

Other financial
liabilities
Defined benefit
liabilities
Provisions
Deferred tax
liabilities

Other
non-current
liabilities
Total non-current
liabilities
Total liabilities

SoftBank Corp. Consolidated Financial Report
For the three-month period ended June 30, 2013

(Millions of yen)
Presentation
under JGAAP

JGAAPReclassification

Differences in Differences inthe scope of recognition andconsolidation measurement

Notes

Presentation
under IFRSs

IFRSs

EquityShareholders’ equity
Common stock

213,798---

Additional paid-in
capital236,563898-

13,306

E

250,767

530,534-(3,335)(121,615)(9)405,584(22,947)---

Retained earnings
Less: Treasury stock

Accumulated othercomprehensive
loss
Unrealized gain on
available-for-salesecurities
Deferred loss onderivatives underhedge accounting
Foreign currencytranslation
adjustments(21,253)-

66,686

10,567(10,567)

-

-

(993)

993

-

-

(30,827)

30,827--

213,798(22,947)

C,E

45,433-

Stock acquisitionrights

898

(898)

-

-

Minority interests

498,047-(19,370)(204,266)

Total equity
Total liabilities andequity1,435,640-(22,705)(245,889)

1,167,046

4,899,705(72,751)

15,921

407,679

5,250,554

55

Accumulated
othercomprehensive
income-892,635

Note: Described in “(9) Notes to the differences in recognition and measurement” on page 68.

EquityEquityattributable toowners of theparentCommon stock
Additional
paid-in
capitalRetainedearnings
Treasury stock

Total equity
attributable toowners of theparentA,B
E,F

274,411

Non-controllinginterests
Total equity
Total liabilities
and equity

SoftBank Corp. Consolidated Financial Report
For the three-month period ended June 30, 2013

(3) Reconciliation of equity as of June 30, 2012
(Items related to consolidated statement of financial position)(Millions of yen)
Presentation
under JGAAP

JGAAPReclassification

Differences in Differences inthe scope of recognition andconsolidation measurement

Notes

Presentation
under IFRSs

IFRSs

AssetsCurrent assets
Cash and deposits
Notes andaccounts
receivable tradeMarketablesecurities
Merchandise andfinishedproducts
Deferred tax
assetsOther current
assetsLess:
Allowance for
doubtfulaccounts
Total current assets
Fixed assets
Property andequipment, net
Intangible assets,
net:
Goodwill
SoftwareOther
intangibles
Investments andother assets
Investment
securities

765,055

758,182

(358)

7,231

-

572,849

8,746(1,522)

184,967

5,602(5,602)---

11,445--

11,445

Other financial assets

28,854

12,611--

41,465Inventories

38,481(38,481)---

177,897(93,490)

1,394

3,772

(35,536)

35,536---

1,546,329(69,593)

7,103

188,739

1,672,578

ED

765,040

89,573

Other current assets

Total current assets
Non-current assets
Property, plant andequipment-

30,918(31,041)B,I

1,409,564

764,436
321,913(321,913)

1,212-

12,263-

A

777,911-

Goodwill

30,153321,913863(6,317)

346,612Intangible assets

318,246(318,246)---

205,402

7,249

2,405

G

215,056

168,433(20,240)

151,910E300,103

Investments accounted
for using the equity
methodOther financial assets

165,994

Deferred tax assets

86,672Other non-current
assets108,129

38,481-

19,384

Other assets

140,653(72,262)103

18,178(16,673)

16,673---

3,076,544

38,481

20,105

166,782

3,301,912

5,202

-

19

(5,221)-

4,628,075(31,112)27,227350,300

4,974,490

Total assets

Trade and otherreceivables

1,409,687

Deferred tax
assetsLess:
Allowance for
doubtfulaccounts
Total fixed assets
Deferred charges

AssetsCurrent assets
Cash and cash
equivalents

D,I

Note: Described in “(9) Notes to the differences in recognition and measurement” on page 68.

56

Total non-current assets
Total assets

SoftBank Corp. Consolidated Financial Report
For the three-month period ended June 30, 2013

(Millions of yen)
Presentation
under JGAAP

JGAAPReclassification

Differences in Differences inthe scope of recognition andconsolidation measurement

Notes

Presentation
under IFRSs

IFRSs

Liabilities
Current liabilities

Accounts payable-trade
Short-term borrowings
Current portion of
corporate bonds
Accounts payable other and accrued
expenses

Income taxes payables
Current portion of leaseobligations

Other current liabilities

Total current liabilities

740,084-

217,597E,I

957,681

137,244529,862

24,493

11,660D

703,259

388,188(388,188)---

169,988(169,988)---

575,592(575,592)

-

-

-

1,509

-

-

1,509

57,024(1,249)4934

56,713

165,912(165,912)

-

-

1,562

-

-

71,581(3,204)84

23,676

1,565,529(31,116)

24,581

253,867

Liability for
retirement benefits

1,562
D,F

92,137
1,812,861

Deferred tax liabilities
Allowance for point
mileage
Lease obligations
Other liabilities

1,522,408

10,366

255,981434,900(434,900)---

565,158(565,158)---

11,50026,069(394)

37,175-

1-

14,873

20,65445-

20,69918,2783(337)

27,31045,25433,556(33,556)---

469,865(469,865)---

14,872E,I(51,082)(9,986)

41,191

Total long-term liabilities

1,639,259

4

26,158324,088

1,989,509

Total liabilities

3,204,788(31,112)50,739577,955

3,802,370

57

D,F

1,788,755

102,630

Note: Described in “(9) Notes to the differences in recognition and measurement” on page 68.

Other financial
liabilities
Income taxes
payables-Long-term liabilities

Corporate bonds
Long-term debt

Liabilities andequityCurrent
liabilities
Interest-bearing
debt
Trade and otherpayables

82,753

Provisions
Other current
liabilities
Total current
liabilities
Non-current
liabilities
Interest-bearing
debt

Other financial
liabilities
Defined benefit
liabilities
Provisions
Deferred tax
liabilities

Other
non-current
liabilities
Total non-current
liabilities
Total liabilities

SoftBank Corp. Consolidated Financial Report
For the three-month period ended June 30, 2013

(Millions of yen)
Presentation
under JGAAP

JGAAPReclassification

Differences in Differences inthe scope of recognition andconsolidation
measurement

Notes

Presentation
under IFRSs

IFRSs

EquityShareholders’ equity
Common stock

213,798---

Additional paid-in
capital185,348931-

13,050E

199,329

577,147-(4,595)(105,331)(9)467,221(22,949)---(29,895)-

68,997(2,290)

2,290

-

-

-

(892)

892

-

-

-

(26,713)

26,713---Retained earnings
Less: Treasury stock

Accumulated othercomprehensive loss
Unrealized loss onavailable-for-salesecurities
Deferred loss onderivatives underhedge accounting
Foreign currencytranslation
adjustments

213,798(22,949)

C,E,G

39,102896,501

Stock acquisitionrights

931

(931)

-

-

Minority interests

498,907-(18,917)(204,371)

Total equity
Total liabilities andequity1,423,287-(23,512)(227,655)

1,172,120

4,628,075(31,112)27,227350,300

4,974,490

Note: Described in “(9) Notes to the differences in recognition and measurement” on page 68.

58

EquityEquityattributableto owners of
the parent
Common stock
Additional
paid-in
capitalRetainedearnings
Treasury stock
Accumulated
other comprehensive
incomeTotal equity
attributable toowners of theparentA,B
E,F

275,619

Non-controllinginterests
Total equity
Total liabilities
and equity

SoftBank Corp. Consolidated Financial Report
For the three-month period ended June 30, 2013

(4) Reconciliation of equity as of March 31, 2013
(Items related to consolidated statement of financial position)(Millions of yen)
Presentation
under JGAAP

JGAAPReclassification

Differences
Differences inin the scope of recognition andconsolidation measurement Notes

AssetsCurrent assets
Cash and deposits
Notes andaccounts
receivable - tradeMarketablesecurities
Merchandise andfinishedproducts
Deferred tax assets
Other current
assetsLess:
Allowance for
doubtfulaccounts
Total current assets
Fixed assets
Property andequipment, net

Presentation
under IFRSs

IFRSs

AssetsCurrent assets
Cash and cash
1,439,057
equivalents

1,369,135(4,505)74,427-662,187

26,174

26,516

221,430

4,704(4,704)---

227,235

2,004-

229,239

Other financial assets

43,846

8,021

2,401

-

54,268Inventories

50,580(50,580)---

490,964(370,795)

747

6,232

(30,219)

30,219---2,591,197(138,935)

106,095

227,6622,786,019

D

936,307

127,148

208,596(35,621)B,I

734,407-

138,978

54,014

A

383,733(383,733)---

36,805

383,733

109,844(5,489)524,893

870,608(870,608)---

458,823(259,022)

8,863

G

208,664

464,151(2,197)

172,693E

634,647

99,96750,580(21)

24,864

158,558(69,274)

13,90225,996(16,909)

16,909---Total fixed assets

3,924,809

50,581

210,080

245,320

4,430,790

Deferred charges

8,880

-

9

(8,889)-316,184

464,093

7,216,809

SoftwareOther
intangibles
Investments andother assets
Investment
securities

Deferred tax assets
Other assets
Less:
Allowance for
doubtfulaccounts

Total assets

6,524,886(88,354)

Note: Described in “(9) Notes to the differences in recognition and measurement” on page 68.

59

927,399

175,390
D,H,I

Trade and otherreceivables

Other current assets

Total current assets

Non-current assets
Property, plant and1,830,615
equipment-

Intangible assets,
net:
Goodwill

1,657,640

D,E

129,182

Goodwill
Intangible assets

Investments
accounted for using
the equity method
Other financial
assetsDeferred tax assets
Other non-current
assetsTotal non-current assets

Total assets

SoftBank Corp. Consolidated Financial Report
For the three-month period ended June 30, 2013

(Millions of yen)
Presentation
under JGAAP

JGAAPReclassification

Differences in Differences inthe scope of recognition andconsolidation measurement

Notes

Presentation
under IFRSs

IFRSs

Liabilities
Current liabilities

Accounts payable trade
Short-term borrowings
Current portion of
corporate bonds
Accounts payable –other and accrued
expenses

1,243,412

52,424

238,292

E,I

1,534,128

194,654696,218

63,70518,092

D

972,669

813,491(813,491)---

205,000(205,000)---

751,690(751,690)

-

-

-

4,833

-

-

4,833

Income taxes payables

179,559(3,096)

4,653

934

182,050

Deferred tax liabilities
Current portion of leaseobligations

71,975(71,975)---

192,603(192,603)

-

-

-

1,252

350

-

1,602

181,212(68,189)

4,299

25,3122,590,184(160,329)

125,431282,630

1,721,366

188,231

264,128

734,900(734,900)---

354,291(354,291)---

12,981

25,673-38,654---

14,506

20,847918-

21,765

17,94071,975

5,879

23,834

119,628

Other current liabilities
Total current liabilities

D,F

142,634
2,837,916

Long-term liabilities

Corporate bonds
Long-term debt

Liability for retirement
benefits
Deferred tax liabilities

14,506E,I

2,173,725

Allowance for point
mileage
Lease obligations

22,548(22,548)---526,739(526,739)---

Other liabilities

157,319(116,716)(8,552)

48,136

Total long-term liabilities

1,828,243

71,975

212,149

336,098

2,448,465

Total liabilities

4,418,427(88,354)

337,580

618,7285,286,381

Note: Described in “(9) Notes to the differences in recognition and measurement” on page 68.

60

D,F

80,187

Liabilities andequityCurrent
liabilities
Interest-bearing
debt
Trade and otherpayablesOther financial
liabilities
Income taxes
payablesProvisions
Other current
liabilities
Total current
liabilities
Non-current
liabilities
Interest-bearing
debt

Other financial
liabilities
Defined benefit
liabilities
Provisions
Deferred tax
liabilities

Other
non-current
liabilities
Total non-current
liabilities
Total liabilities

SoftBank Corp. Consolidated Financial Report
For the three-month period ended June 30, 2013

(Millions of yen)
Presentation
under JGAAP

JGAAPReclassification

Differences inthe scope of
consolidation

Differences inrecognition andmeasurement

Notes

Presentation
under IFRSs

IFRSs

EquityShareholders’ equity
Common stock
Additional paid-in
capital238,772---

429,689

736

(125)

6,404

E

436,704

Retained earnings

753,616-(6,037)(35,491)(9)712,088

Less: Treasury stock(22,834)---

169,842(1)

78,185

4,164(4,164)---

114,158(114,158)---

51,520(51,520)---

Accumulated othercomprehensive
incomeUnrealized gain on
available-for-salesecurities
Deferred gain onderivatives underhedge accounting
Foreign currencytranslation
adjustments

238,772(22,834)

C,E,G

248,026

1,612,756

Stock acquisitionrights736

Minority interests

536,638

Total equity
Total liabilities andequity2,106,459
6,524,886(736)(88,354)---(15,233)(203,733)-(21,396)(154,635)

1,930,428

316,184

464,093

7,216,809

Note: Described in “(9) Notes to the differences in recognition and measurement” on page 68.

61

EquityEquityattributable toowners of theparentCommon stock
Additional
paid-in capital
Retainedearnings
Less:Treasury
stock
Accumulated
othercomprehensive income

Total equity
attributable toowners of theparentA,B
E,F

317,672

Non-controllinginterests
Total equity
Total liabilities
and equity

SoftBank Corp. Consolidated Financial Report
For the three-month period ended June 30, 2013

(5) Adjustment to comprehensive income for the three-month period ended June 30, 2012
(Items related to consolidated statement of income)(Millions of yen)
Presentation
under JGAAPNet sales
Cost of sales
Gross profit
Selling, general andadministrative
expenses
Operating income

Reclassification

Differences inthe scope of
consolidation

Differences inrecognition andmeasurement

766,902

3,037

(893)

(43,102)(340,506)(2,878)(2,471)

1,009

426,396

159(3,364)(42,093)

JGAAP(234,271)

(593)

(349)

57,431

Presentation
under IFRSs

Notes

IFRSs

D
B,D
F,I

725,944(344,846)
381,098

A,B,D
E,F,I

(177,782)

Ordinary income
Special income
Special loss
Income before
income taxes andminority interests
Income taxes
Income before
minority interests

Cost of sales
Gross profit
Selling,
general andadministrative expenses

192,125

-

-

-

-

-

-

-

-

203,316

Non-operating
incomeNon-operating
expenses

Net sales(10,379)

1,270

(296)

E,G,I

(9,405)

(501)

4

2,585

G

2,088

2,976

(2,976)---(14,122)

14,122

-

-

-

3,336

(3,336)---(3,504)

3,504

-

-

-

180,811-(2,439)17,627(73,122)-(4)

107,689-(2,443)

Income fromre-measurement
relating tobusiness
Other
operatingincome( loss)OperatingincomeFinance cost,net
Equity inincome ofassociates

180,979

195,999

Income before
income tax(4,292)(77,418)

Income taxes

13,335

118,581Note: Described in “(9) Notes to the differences in recognition and measurement” on page 68.

62

(9)

Net income

SoftBank Corp. Consolidated Financial Report
For the three-month period ended June 30, 2013

(Items related to consolidated statement of comprehensive income)(Millions of yen)
Presentation
under JGAAP

Income before
minority interests

JGAAP

Reclassification

Differences inthe scope of
consolidation

107,689-(2,443)Differences inrecognition andmeasurement
13,335

Notes

Presentation
under IFRSs

IFRSs
118,581Othercomprehensive
loss

Other
comprehensive
loss, net of tax

-

-

(2)

(2)

(2)

Unrealized loss onavailable-for-salesecurities(12,180)

-

-

2,378

Deferred gain onderivatives underhedge
accounting

101

-

-

-

Foreign currencytranslation
adjustment

Share of othercomprehensive
income ofaffiliatedcompanies
accounted forusing equity
method(4,730)

8,285

-

-

-

-

17

55

E

(9,802)Comprehensive
income(8,524)-

99,165-(2,443)

Cash flow hedges(4,713)

Exchangedifferences ontranslating
foreign
operations

8,340

Share of othercomprehensive
income ofassociates

2,448(6,076)

15,783

112,505

Note: Described in “(9) Notes to the differences in recognition and measurement” on page 68.

63

Items that will
not bereclassified to
profit or loss
Remeasurements ofdefinedbenefit plan
Total items thatwill not bereclassified to
profit or loss
Items that may
be reclassified
subsequently to
profit or loss
Available-forsale financial
assets101(6,074)

Total othercomprehensiveloss

Net income

Total items that
may bereclassified
subsequently
to profit orloss
Total othercomprehensive
loss, net of tax
Total
comprehensive
incomeSoftBank Corp. Consolidated Financial Report
For the three-month period ended June 30, 2013

(6) Adjustment to comprehensive income for the year ended March 31, 2013
(Items related to consolidated statement of income)(Millions of yen)
Presentation
under JGAAPNet sales
Cost of sales
Gross profit

Selling, general andadministrative
expenses
Operating income

JGAAP

Differences in Differences inthe scope of recognition andconsolidation
measurement

Reclassification

3,378,365

10,191

38,823(224,843)(1,590,740)(9,522)(22,918)

12,338

1,787,625

669

15,905(212,505)(1,042,625)

2,574(24,757)

270,735

Presentation
under IFRSs

Notes

IFRSs

D
B,D
F,I

3,202,536

Net sales(1,610,842)

Cost of sales

1,591,694

Gross profit

A,B,D,E,
F,H,I(794,073)

745,000

1,778

-

-

1,778

-

-

-

-

799,399

Non-operating
incomeNon-operating
expenses
Ordinary income
Special income
Special loss
Income before income
taxes and minority
interests
Income taxes
Income before
minority interests

Selling, generalandadministrative expenses(66,003)

1,386

6,859

E,G,I

(57,758)(33,524)

(908)

8,295

G

(26,137)

19,779(19,779)---(111,565)

111,565---

11,383(11,383)---(14,103)

14,103---

Income fromre-measurement relating
to business
Other operating
incomeOperatingincomeFinance cost,net
Equity inloss ofassociates

653,214650,494-(8,374)73,384(287,174)

-

1,543

7,964

(277,667)

363,320-(6,831)

81,348437,837

Note: Described in “(9) Notes to the differences in recognition and measurement” on page 68.

64

(9)

715,504

Income before
income tax
Income taxes
Net income

SoftBank Corp. Consolidated Financial Report
For the three-month period ended June 30, 2013

(Items related to consolidated statement of comprehensive income)(Millions of yen)
Presentation
under JGAAP

Income before
minority interests

JGAAP
363,320

Reclassification

Differences inthe scope of
consolidation

Differences inrecognition andmeasurement-(6,831)

81,348

Notes

Presentation
under IFRSs

IFRSs
437,837

Net income
Other
comprehensive
income, net of tax

Other comprehensive
incomeItems that will not
be reclassified to
profit or loss

-

-

68

68

68

Unrealized loss onavailable-for-salesecurities(8,121)-

1

12,609Deferred gain onderivatives underhedge accounting

117,859-(2,723)-Foreign currencytranslation
adjustment

Share of othercomprehensive
income ofaffiliatedcompanies
accounted for using
the equity method

65,906

15,270

-

-

-

2,710

(50)

821

E

4,489

Available-for-salefinancial assets

115,136

Cash flow hedges

65,856

Exchangedifferences ontranslating
foreign
operations

18,801

Share of othercomprehensive
income ofassociates

204,282

Total othercomprehensive
incomeComprehensive
income190,914-(12)

13,448204,350554,234-(6,843)

94,796642,187

Note: Described in “(9) Notes to the differences in recognition and measurement” on page 68.

65

Remeasurementsof defined
benefit plan
Total items that will
not be reclassified
to profit or loss
Items that may bereclassified
subsequently to
profit or loss

Total items that
may bereclassified
subsequently to
profit or loss
Total othercomprehensive
income, net of tax
Total
comprehensive
incomeSoftBank Corp. Consolidated Financial Report
For the three-month period ended June 30, 2013

(7) Notes to the reclassification
The following reclassifications are made for the transition to IFRSs and do not affect retained earnings andcomprehensive income.
(a) Under JGAAP, investments in associates were included in investment securities.
separately presented as investments accounted for using the equity method.

Under IFRSs, they are(b) Under JGAAP, short-term borrowings, current portion of corporate bonds and current portion of lease obligations
are presented as separate components and installment payables were included in accounts payable-other andaccrued expenses. Under IFRSs, they are all included in interest-bearing debt (current). In addition, under
JGAAP, corporate bonds, long-term debt and lease obligations (non-current) are presented as separate
components and long-term installment payables were included in other liabilities (long term). Under IFRSs,
they are all included in interest-bearing debt (non-current).
(c) Under JGAAP, accounts payable - trade were presented separately. Accounts payable - other (except for
installment payables) were included in accounts payable - other and accrued expenses. Deposits and otherpayables were included in other current liabilities. Under IFRSs, they are all included in trade and otherpayables.
(d) All deferred tax assets and liabilities that were classified as current items under JGAAP are classified as
non-current items under IFRSs.
(e) Upon transition to IFRSs, sales and cost of sales arising from transactions where the Company is acting as aprincipal are presented on a gross basis. Sales and cost of sales arising from transactions where the Company isacting as an agent are presented on a net basis.
(f) Finance income and cost, such as interest expense, that were presented as non-operating income, non-operating
expenses, special income and special loss under JGAAP are presented under finance income (cost), net under
IFRSs.
(g) Other reclassifications have been made by aggregating or separating presentation under JGAAP to be consistent
with the presentation under IFRSs.
(8) Notes to the differences in the scope of consolidation
The effect of the review of the scope of consolidation under IFRSs from JGAAP is separately presented in thesereconciliations.
Under JGAAP, Wireless City Planning Inc. (“WCP”), which operates a wireless communications network using
AXGP technology, was accounted for using the equity method, as the Company owns 33.3% of its voting rights.
Upon transition to IFRSs, the Company determined that it has substantial control over WCP and included it into thescope of consolidation considering the fact that the Company constitutes the majority of members of WCP’s board of
directors and that WCP’s business activities significantly depend on the Company.
In addition to the effect above, there is also a following effect in the reconciliation of equity as of March 31, 2013and comprehensive income for the year ended March 31, 2013.
eAccess became the Company’s wholly owned subsidiary effective on January 1, 2013. On January 17, 2013, theCompany transferred certain stocks of eAccess to 11 companies outside of the Company.
Under JGAAP, the Company’s voting rights in eAccess decreased to 33.3% after the transfer of stocks and eAccess
was accounted for using the equity method. Under IFRSs, the Company determined that it has substantial control
over eAccess and included it into the scope of consolidation, as the economic ownership ratio of 99.5% issignificantly higher than the percentage of voting rights and the proportion of voting rights is relatively large
compared to other holders of voting rights due to the dispersion of voting rights.
Set out below is the consideration transferred, fair values of assets and liabilities, non-controlling interests, goodwill
and proceeds from the acquisition of control over a subsidiary, recognized in accordance with IFRS 3 “Business
Combinations”, as a result of consolidation of eAccess on January 1, 2013:66

SoftBank Corp. Consolidated Financial Report
For the three-month period ended June 30, 2013(a) Consideration transferred, fair values of assets and liabilities, non-controlling interest, and goodwill on theacquisition date（Millions of yen）

Consideration transferred1aAcquisition date
(January 1, 2013)
218,296
84,069Current assets
Property, plant and equipment
Intangible assets
Other non-current assets

147,886
109,317

Total assets

379,583

Current liabilities
Non-current liabilities

108,073
190,576

Total liabilities

298,649

38,311

Net assets

Non-controlling interests2
Goodwillb80,934c404

a-(b-c)137,766

Notes:
1. Consideration transferred is SoftBank Corp.’s stock issued by the share exchange with eAccess.
2. Non-controlling interests are measured based on the proportionate interests in identifiable net assets of the acquiree.

(b) Proceeds from the acquisition of control over the subsidiary

Cash and cash equivalents held by the acquiree when control is acquired
The proceeds from transfer of Class B shares of eAccess
Less: Cash and cash equivalents paid for the acquisition of control over a
subsidiary
Net cash inflow from the acquisition of control over a subsidiary

67(Millions of yen)
Acquisition date
(January 1, 2013)
29,796
1,100
30,896

SoftBank Corp. Consolidated Financial Report
For the three-month period ended June 30, 2013(9) Notes to the differences in recognition and measurement
Major adjustments to the retained earnings are as follows:(Millions of yen)

Retained earnings under JGAAP
Differences in the scope of consolidation
Differences in recognition and measurement
A. Goodwill
B. Property, plant and equipment
C. Cumulative translation differences for foreign
operation at the date of transition to IFRSs
D. Revenue recognition
E. Financial instruments
F. Employee benefits
G. Investments in associates
H. Acquisition-related costs arising from businesscombinations
I. Leases
Other
Tax effect on adjustments above and other tax effects
Total differences
Retained earnings under IFRSs

As ofApril 1, 2012
530,534(3,335)As ofJune 30, 2012
577,147(4,595)

As ofMarch 31, 2013
753,616(6,037)(2,750)(49,256)

12,990(50,032)

60,798(50,914)(30,827)(19,919)(20,370)(14,404)(231)(30,827)(19,005)(19,074)(14,404)
2,351(30,827)(17,048)(14,517)(14,338)
8,042(4,203)(6,590)26,935(121,615)
405,584(3,840)(6,269)22,779(105,331)
467,221(3,801)(2,850)(5,094)35,058(35,491)
712,088*A to I and “Other” in the table above are presented before net of tax effects.

Major adjustments to income before income tax are as follows:
Three-month period ended
June 30, 2012

(Millions of yen)
Year ended
March 31, 2013180,811(2,439)650,494(8,374)

15,799(767)

64,022(1,307)914(1,424)
5
2,582

2,871
1,093
(90)
8,273

-

(3,801)364
154
17,627
195,999

1,353
970
73,384
715,504

Income before income taxes and minority interests under
JGAAP
Differences in the scope of consolidation
Differences in recognition and measurement
A. Goodwill
B. Property, plant and equipment
C. Cumulative translation differences for foreign
operation at the date of transition to IFRSs
D. Revenue recognition
E. Financial instruments
F. Employee benefits
G. Investments in associates
H. Acquisition-related costs arising from businesscombinations
I. Leases
Other
Total differences
Income before income tax under IFRSs

68

SoftBank Corp. Consolidated Financial Report
For the three-month period ended June 30, 2013

Details of major differences are as follows:
A. Goodwill
Under JGAAP, goodwill was amortized regularly over the periods in which economic benefits were reasonably
expected to be realized. Under IFRSs, it is not amortized regularly and this results in an increase of the remaining
amount of goodwill and a decrease of selling, general and administrative expenses for the three-month period
ended June 30, 2012 and for the year ended March 31, 2013.
An impairment test on goodwill was performed on April 1, 2012 and an impairment loss of ¥3,543 million on
goodwill was recognized on April 1, 2012. The amount of the impairment loss on goodwill attributable to ownersof the parent was deducted from retained earnings. The impaired goodwill is mainly related to the Domestic
Fixed-line Telecommunications segment and Internet segment.
The effect arising from the differences is summarized as follows:(Millions of yen)(Consolidated statements of financial position)

As ofApril 1, 2012

As ofJune 30, 2012

As ofMarch 31, 2013

Increase (decrease) in goodwill
Decrease in non-controlling interests(3,543)793

12,529461

60,751
47

Increase (decrease) in retained earnings(2,750)12,99060,798Three-month period
ended June 30, 2012

Year ended
March 31, 2013

Decrease in selling, general and administrative
expenses

15,79964,022

Increase in income before income tax

15,79964,022(Consolidated statements of financial position)

B. Property, plant and equipment
Upon transition to IFRSs, residual values and depreciation method of property, plant and equipment have beenreviewed.
The effect arising from the differences is summarized as follows:(Millions of yen)(Consolidated statements of financial position)

As ofApril 1, 2012

As ofJune 30, 2012

As ofMarch 31, 2013

Decrease in property, plant and equipment
Increase in non-controlling interests(46,257)(2,999)(47,025)(3,007)(47,564)(3,350)Decrease in retained earnings(49,256)(50,032)(50,914)

Three-month period
ended June 30, 2012

Year ended
March 31, 2013

Increase in cost of sales
Decrease in selling, general and administrative
expenses(781)(1,917)14610

Decrease in income before income tax(767)(1,307)(Consolidated statements of income)69SoftBank Corp. Consolidated Financial Report
For the three-month period ended June 30, 2013

C. Cumulative translation differences for foreign operations at the date of transition to IFRSs
By applying the exemption as an IFRSs first-time adopter as described above, the Company has transferred all
cumulative translation differences for foreign operations to retained earnings on the date of transition to IFRSs(April 1, 2012), which has resulted in a decrease in retained earnings by ¥30,827 million.
D. Revenue recognition(a) Under JGAAP, commission fees related to sales of mobile handsets that the Company pays to dealers ofmobile handsets were expensed as incurred. Under IFRSs, the amount of commission fees expected tooccur in the future is deducted from the related revenues.
(b) Under JGAAP, activation fees and upgrade fees were recognized as revenues upon receipt. Under IFRSs,
they are deferred upon entering into the contract and recognized as revenues over the estimated averagecontract period and estimated average usage period of handsets. Direct costs related to activation are
deferred to the extent of the activation fees and upgrade fees are amortized over the same periods.
(c) Under JGAAP, an allowance for point mileage was accrued based on the estimated future obligation arisingfrom point service to customers and provisions for the allowance were expensed as selling, general andadministrative expenses. Under IFRSs, point services are recognized individually as goods to betransferred or serviced to be provided in the future. The fair value of benefits exchanged with points isdeducted from revenues and revenues are recognized when customers use those points.
The effect arising from the differences is summarized as follows:(Millions of yen)(Consolidated statements of financial position)

As ofApril 1, 2012

As ofJune 30, 2012

As ofMarch 31, 2013

Increase in trade and other receivables
Increase in other current assets
Increase in other non-current assets
Increase in trade and other payables
Increase in other current liabilities

10,00938,942(19,919)(10,009)

10,25739,794(19,005)(10,257)

1,226
14,46245,990(18,274)(14,462)

Increase in other non-current liabilities(38,942)(39,794)(45,990)

Decrease in retained earnings(19,919)(19,005)(17,048)(Consolidated statements of income)Three-month period
ended June 30, 2012

Decrease in net sales
Decrease in cost of sales
Decrease in selling, general and administrative
expenses
Increase in income before income tax

70

Year ended
March 31, 2013

(43,102)
1,100(224,843)
11,50142,916216,213

914

2,871

SoftBank Corp. Consolidated Financial Report
For the three-month period ended June 30, 2013

E. Financial instruments(a) Under JGAAP, convertible bonds with stock acquisition rights were recognized as a whole and presented as aliability. Under IFRSs, stock acquisition rights embedded in convertible bonds are recognized separately
and presented as additional paid-in capital. They are measured as the difference between the entire fair valueof the convertible bonds with stock acquisition rights and the fair value of similar bonds with no stockacquisition rights. Also, under JGAAP, transaction costs related to the issuance of bonds are recognized as an
asset and amortized over the redemption period. Under IFRSs, they are allocated to the liability and equity
components in proportion to the carrying amounts. The costs related to liability is reflected in the measurementof amortized cost of the bond and recognized as expenses over the redemption period. The cost related to stockacquisition rights is deducted from equity.
(b) Under JGAAP, commission fees related to borrowing were expensed as incurred. Under IFRSs, they areincluded in measuring the liability at amortized cost and recognized as an expense over the redemption period.
(c) Under JGAAP, financial assets related to securitization transactions were derecognized when control overfinancial components of the financial assets is transferred to a third party. Under IFRSs, financial assets are
derecognized when the contractual rights to the cash flows from the financial asset expire or when it transfers
the financial asset and substantially all the risks and rewards of ownership of the financial asset.
Therefore, for certain securitization transactions that previously qualified for extinguishment of financial assets
under JGAAP, securitized receivables are recognized retrospectively and accompanying liabilities arerecognized as borrowings under IFRSs since they are not qualified for derecognition of financial assets under
IFRSs.
(d) Under JGAAP, unlisted shares were measured based on their historical costs and impaired as necessary.
Under IFRSs, they are classified as available-for-sale financial assets and measured at their fair values.
(e) Under JGAAP, advances to dealers for installment sales receivables of mobile handsets were recognized asreceivables by the amount under the installment contract, less allowance for doubtful accounts. Under IFRSs,
the receivables arising from advances to dealers are recognized as trade and other receivables or other financial
assets (non-current), while commission is expensed. Commission consists of credit risk, collecting costs andinterest due to the passage of time.
(f) Under JGAAP, preferred securities issued by a subsidiary were accounted for as equity transactions. Under
IFRSs, they are accounted for as interest-bearing debt and measured at amortized cost using the effective
interest method as it is necessary to deliver cash to owners of preferred securities in the future.
The effect arising from the differences is summarized as follows:(Millions of yen)(Consolidated statements of financial position)

As ofApril 1, 2012

As ofJune 30, 2012

As ofMarch 31, 2013

Increase in trade and other receivables
Increase in other financial assets (non-current)
Increase in interest-bearing debt (current)

163,745
155,640(205,229)

184,967
151,910(217,074)

220,204
172,693(238,245)

Increase in interest-bearing debt (non-current)
Increase in additional paid-in capital (before tax)
Increase in accumulated other comprehensive
income (before tax)
Decrease in non-controlling interests
Other(253,987)(22,366)(255,910)(22,366)(264,087)(22,035)(56,170)(59,607)(71,529)

204,413(6,416)204,392(5,386)204,135(15,653)

Decrease in retained earnings(20,370)(19,074)(14,517)71

SoftBank Corp. Consolidated Financial Report
For the three-month period ended June 30, 2013

(Millions of yen)(Consolidated statements of income)Three-month period
ended June 30, 2012

Increase in selling, general and administrative
expenses
Decrease (increase) in finance cost

Year ended
March 31, 2013

(1,044)(5,463)

(380)

6,556

(1,424)

1,093(Consolidated statements of comprehensive
income)Three-month period
ended June 30, 2012

Year ended
March 31, 2013

Increase in available-for-sale financial assets
Increase in other comprehensive income(net of tax)

2,378

12,6092,378

12,609

Increase (decrease) in income before income tax

F. Employee benefits(a) Upon transition to IFRSs, unused paid absences and long-term employee benefits are recognized as liabilities.
(b) Under JGAAP, unrecognized actuarial gains and losses of retirement benefit obligations in the defined benefit
plans were expensed as incurred in principle. Under IFRSs, they are recognized as other comprehensive
income and transferred to retained earnings as incurred.

The effect arising from the differences is summarized as follows:(Millions of yen)(Consolidated statements of financial position)

As ofApril 1, 2012

As ofJune 30, 2012

As ofMarch 31, 2013

Increase in other current liabilities
Increase in other non-current liabilities
Decrease in non-controlling interests(12,002)(3,783)
1,381(12,002)(3,783)
1,381(11,817)(3,952)
1,431

Decrease in retained earnings(14,404)(14,404)(14,338)(Consolidated statements of income)Three-month period
ended June 30, 2012

Year ended
March 31, 2013

Decrease (increase) in cost of sales
Decrease (increase) in selling, general andadministrative expenses

1

(9)

4

(81)

Increase (decrease) in income before income tax

5

(90)

72

SoftBank Corp. Consolidated Financial Report
For the three-month period ended June 30, 2013

G. Investments in associates
Under JGAAP, goodwill related to investments accounted for using the equity method was amortized equally
over the periods in which economic benefits were reasonably expected to be realized. Under IFRSs, it is notamortized regularly and that results in an increase of investments accounted for using the equity method andequity income of associates for the three-month period ended June 30, 2012 and for the year ended March 31,
2013. As of April 1, 2012, the entire investment over associates, including goodwill, is tested for impairment.
As a result, as of April 1, 2012, the Company recognized an impairment loss of ¥231 million and deducted it fromretained earnings.

The effect arising from the differences is summarized as follows:(Millions of yen)(Consolidated statements of financial position)

As ofApril 1, 2012

Increase (decrease) in investments accounted
for using the equity method
Increase in accumulated other comprehensive
income (before tax)
Increase (decrease) in retained earnings

As ofJune 30, 2012

As ofMarch 31, 2013

(231)

2,405

8,863

-

(54)

(821)

(231)

2,351

8,042

(Consolidated statements of income)Three-month period
ended June 30, 2012

Year ended
March 31, 2013

Increase in finance cost
Increase in equity in income ofassociates
Increase in income before income tax

(3)

(22)

2,585

8,295

2,582

8,273

H. Acquisition-related costs arising from business combinations
Under JGAAP, acquisition-related costs arising from business combinations are recognized as an asset when they
are regarded as consideration for the acquisitions. Under IFRSs, they are expensed as incurred or when services
are rendered as transaction costs, directly attributable to business combinations, which have resulted in a decreasein other non-current assets.
The effect arising from the differences is summarized as follows:(Millions of yen)(Consolidated statements of financial position)

As ofApril 1, 2012

As ofJune 30, 2012

As ofMarch 31, 2013

Decrease in other non-current assets--(3,801)

Decrease in retained earnings--(3,801)(Consolidated statements of income)Three-month period
ended June 30, 2012

Year ended
March 31, 2013

Increase in selling, general and administrative
expenses-(3,801)

Decrease in income before income tax-(3,801)73

SoftBank Corp. Consolidated Financial Report
For the three-month period ended June 30, 2013

I. Leases
Under JGAAP, finance lease transactions in which the ownership of leased assets was not transferred to lessees andthat are contracted before April 1, 2008, are accounted for as operating lease transactions as permitted exceptionally.
Under IFRSs, leased assets and lease obligations are recognized. Accordingly, provisions for impairment of leased
assets which were previously included in other liabilities (non-current) under JGAAP are offset by property, plantand equipment. Long-term prepaid lease expenses are offset by lease obligations.
The effect arising from the difference is summarized as follows:(Millions of yen)(Consolidated statements of financial position)
Increase in property, plant and equipment
Decrease in other non-current assets
Increase in interest-bearing debt (current)
Increase in interest-bearing debt (non-current)
Other

As of
April 1, 2012

As ofJune 30, 2012

As ofMarch 31, 2013

104,973

15,983

11,943(22,676)(21,172)(16,059)(4,619)

(523)

(47)

(84,023)

(71)

(41)

2,142

1,943

1,354

(4,203)(3,840)(2,850)Decrease in retained earnings(Millions of yen)Three-month period
ended June 30, 2012

Year ended
March 31, 2013

Decrease in cost of sales
Decrease in selling, general and administrative
expenses
Decrease in finance cost

264

1,066

5

12

95

275

Increase in income before income tax

364

1,353

(Consolidated statements of income)(10) Notes to reconciliation of cash flows
The adjustment of cash flows for the three-month period ended June 30, 2012
(Millions of yen)(Consolidated statements of Cash Flows)

Cash flows fromoperating activities

Cash flows frominvesting activities

Cash flows fromfinancing activities

131,879(166,274)(220,121)(485)(9,433)

10,366(12,127)-

12,127

(233)

-

233

(1,238)(1,129)710(13,598)(1,129)13,070117,796(176,836)(196,685)

JGAAP
Differences in the scope of consolidation
Differences in recognition and measurement(a) Securitization transactions(b) Measuring financial liabilities by
amortized costs(c) Other
Total differences in recognition andmeasurement
IFRSs

74

SoftBank Corp. Consolidated Financial Report
For the three-month period ended June 30, 2013

The adjustment of cash flows for the year ended March 31, 2013
(Millions of yen)(Consolidated statements of Cash Flows)

Cash flows fromoperating activities

Cash flows frominvesting activities

Cash flows fromfinancing activities

894,460(919,770)

365,494

5,687

41,725

20,667(51,081)-

51,081JGAAP
Differences in the scope of consolidation
Differences in recognition and measurement(a) Securitization transactions(b) Measuring financial liabilities by
amortized costs(c) Other(23,571)-

23,571(12,470)

3,901

10,664

Total differences(87,122)

3,901

85,316

813,025(874,144)

471,477

IFRSs

Major differences in recognition and measurement are as follows:(a) Securitization transactions
Under JGAAP, securitization transactions qualifying for extinguishment of financial assets were included in cash
flows from operating activities. Under IFRSs, certain securitized receivables are recognized for securitizationtransactions that are not qualified for derecognition of financial assets and accompanying liabilities are accounted for
as borrowings. Accordingly, an increase or decrease in borrowings is included in cash flows from financing activities.
As a result, cash flows from operating activities decreased with a corresponding increase in cash flows from financing
activities.
(b) Measuring financial liabilities by amortized costs
Under JGAAP, commission fees related to borrowings and corporate bonds were included in cash flows fromfinancing activities. Under IFRSs, due to measuring borrowings and corporate bonds by amortized costs,
commission fees are included in cash flows from operating activities. As a result, cash flows from operating
activities decreased with a corresponding increase in cash flows from financial activities.

75