SOFTBANK CORP.
CONSOLIDATED INTERIM FINANCIAL REPORTFor the Six Months Ended September 30, 2001
FINANCIAL HIGHLIGHTS
1) Results of Operations(Millions of yen; amounts less than one million yen are omitted.)
FY2002 Interim(April 2001
through
September 2001)

Yearon-yearchangeFY2001 Interim(April 2000
through
September 2000)

Year-onyearchangeFY2001(April 2000
through
March
2001)

¥183,372(8,704)(16,150)(54,315)(161.29)(159.99)

1.7%
—
—
—
—
—

¥180,236
4,703
1,037
36,310109.79108.61(10.6)%
27.6
—
—
—
—

¥397,105
16,431
20,06536,631110.47109.38Operating revenue
Operating income (loss)
Ordinary income (loss)
Net income (loss)
Net income (loss) per share— primary (yen)Net income (loss) per share— diluted (yen)Notes:
1. Equity in losses under the equity method, net (Millions of yen):Six months ended September 30, 2001:¥(8,976)

Fiscal Year ended March 31, 2001:¥(19,765)

2. Weighted-average number of shares (consolidated basis)Six months ended September 30, 2000:¥(6,847)Six months ended September 30, 2001: 336,762,941
Six months ended September 30, 2000: 330,715,513
Year ended March 31, 2001: 331,585,133

3.

There were no significant changes in accounting methods during the period under review.

4.

Percentage changes for operating revenue, operating income, ordinary income and net income are compared with thecorresponding period of the previous interim fiscal year.

2. Financial Condition

Total assets
Shareholders’ equity
Equity ratio (%)
Shareholders’ equity per share (yen)(Millions of yen; amounts less than one million yen are omitted.)
FY2002 Interim
FY2001 Interim
FY2001(As of September 30,(As of September(As of March 31,
2001)
30, 2000)2000)¥1,123,856¥1,078,146¥1,146,083
352,429
383,944424,261
31.4
35.6
37.0
1,046.30
1,159.73
1,260.14

Note: Outstanding number of shares (consolidated basis)
As of September 30, 2001: 336,833,168

As of September 30, 2000: 331,063,579

As of March 31, 2001: 336,677,714

3. Cash Flows

Cash flows form operating activities
Cash flows from investing activities
Cash flows from financing activities
Cash and cash equivalents at end of the period

4. Scope of Consolidation
Consolidated subsidiaries:
Equity-method affiliates:(Millions of yen; amounts less than one million yen are omitted.)
FY2002 Interim
FY2001 Interim
FY2001(April 2001 through(April 2000 through(April 2000 throughSeptember 2001)
September 2000)
March 2001)¥(53,995)¥(79,217)¥(91,598)(24,254)(31,501)(42,612)63,50941,13824,548146,821
177,759
159,105277
119

Equity-method non-consolidated subsidiaries:

5. Changes in Scope of Consolidation
Consolidated subsidiaries:
Newly added:
75
Equity-method non-consolidated subsidiaries and affiliates:
Newly added:
24

SOFTBANK CORP.

Excluded:

14

Excluded:

16

6

1

(Reference)
Per Share Indices after Retroactive Adjustment

1. Consolidated Basis

Earnings per share
Shareholders’ equity per share

FY 2000
Interim¥(10.98)¥1,011.81

FY 2000¥26.02¥1,152.18

FY 2001
Interim¥109.79¥1,159.73

FY 2001

FY 2001
Interim¥(2.49)¥1,100.34

FY 2001¥110.47¥1,260.14

FY 2002
Interim¥(161.29)¥1,046.30

2. Non-consolidated Basis

Earnings per share
Shareholders’ equity per share

FY 2000
Interim¥35.95¥958.29

FY 2000¥165.04¥1,104.06¥14.50¥1,172.75

FY 2002
Interim¥(28.84)¥1,135.27

Notes:
1) Earnings per share is computed based on the weighted-average number of shares issued and outstanding
during the applicable period, and shareholders’ equity per share is computed based on the outstanding numberof shares at year-end, with an appropriate retroactive adjustment to reflect the effect of stock sprits.
2) Adjustment for the following stock split was made to the preceding figures.
June 23, 2000, stock split (each share split into 3.0 shares)

SOFTBANK CORP.

2

The SOFTBANK GroupAs of September 30, 2001, the SOFTBANK Group comprised 277 companies with operations in 9 segments.
Equity-method nonconsolidated
Consolidated
Principal businesses
subsidiaries andsubsidiaries (includes
Business segment
affiliates (includes
partnerships)
partnerships)
Distributes PC software, hardware, and peripherals; operates enterprisebusinesses and business transaction platform and consumer-related e1. e-Commerce
33
14commerce businesses
All inclusive Web-based financial operations, including Internet securities
operations; management of domestic venture capital funds; incubation of
2. e-Finance
116
20
portfolio corporations
Book and magazine publication in such areas as PCs, the Internet,
3. Media & Marketing27
6entertainment, etc.; exhibition management; Web content development
4. Broadmedia

172

5. Internet Culture
6. Technology Services

8
7

7
4

7. Internet Infrastructure

41

8. Overseas Funds

43

58

9. Others

22

13

Total

277

125

Provision of applications and content for broadcasting and broadband
communications and promoting the spread of such operations
Internet-based advertising, broadband portals, auctions, etc.
System solutions, business solutions, etc.
Provides fiber optic ultrahigh-speed Internet access services, operates a
related data center and other businesses.
U.S.- and Asia- focused global private equity operations in Internetrelated companies
Provide ADSL-based broadband infrastructure services, function as
overseas holding companies, provide back-office support services inJapan, etc.

e-Commerce

e-Finance［Overseas］

Morningstar, Inc.
WEB-Lease Co., Ltd.

SOFTBANK Ventures Fund 1
SOFTBANK US Ventures VI L.P.

［Domestic］

SOFTBANK FRONTIER SECURITIES Co., Ltd.
SophiaBank Limited
Morningstar Japan K.K.

Car Point K.K.

E*TRADE SECURITIES CO., LTD.

e-Shopping! Books CORP.

E*TRADE Japan K.K.

SOFTBANKFINANCECORPORATIONSOFTBANK Capital LPSOFTBANK ECHOLDINGSCORP.

SOFTBANK Europe Capital LPSOFTBANK Holdings Inc.
SB Holdings (Europe) Ltd.

［Domestic］（Operation Holding
Companies）

SOFTBANK CORP.
（Pure Holding
Company）

Yahoo Japan Corporation
Yahoo!Inc.

Internet Culture

Media & Marketing（Operation Holding Companies）

SB CHINA HOLDINGS PTE LTD［Overseas］

Vector Inc.

SOFTBANK COMMERCE CORP.

SOFTBANK INVESTMENT CORPORATION

Overseas Funds

Nihon Ariba K.K.

Internet Research Institute, Inc.

SOFTBANK
Broadmedia
Corporation

Digital Club Corporation

SOFTBANKMedia &
Marketing Corp.

（Operation Holding
Companies）

cyber communications inc.
SOFTBANK Publishing Inc.

Key3Media Group, Inc.

SOFTBANK ZDNet Inc.

［Overseas］［Domestic］

SOFTBANKTECHNOLOGYHOLDINGS CORP.
SOFTBANK TECHNOLOGY CORP.

SOFTBANK
Networks Inc.

Computer Channel Corporation （Operation Holding
Xdrive Japan K.K.

Companies）

Akamai Technologies Japan K.K.

Internet Facilities Inc.

Aozora Bank, Ltd.

Technology Services

Nasdaq Japan, Inc.
Dee Corp.

AtWork Corporation

BB Techonologies Corporation

IP REVOLUTION, INC.

［Domestic］

UTStarcom, Inc.
SOFTBANK Korea Co., Ltd.

Broadmedia［Overseas］

OthersInternet Infrastructure････････Segment････････Consolidated subsidiary････････Equity-method non-consolidated subsidiary or affiliate

SOFTBANK CORP.

3

SOFTBANK subsidiaries listed on domestic stock exchanges (or that have made IPOs) as of September 30, 2001:

Subsidiary

Listed exchange

1.Yahoo Japan Corporation

Over-the-counter2. SOFTBANK TECHNOLOGY CORP.

Over-the-counter

3. Morningstar Japan K.K.

Nasdaq Japan

4. Vector Inc.

Nasdaq Japan

5. E*TRADE Japan K.K.

Nasdaq Japan

6. SOFTBANK INVESTMENT CORPORATION

Nasdaq Japan

7. SOFTBANK FRONTIER SECURITIES Co., Ltd.

Nasdaq Japan(Reference) Subsidiaries listed on overseas stock exchanges:

Subsidiary

Listed exchange

1. Key3Media Group, Inc.

New York Stock Exchange

2. SOFTBANK INVESTMENT INTERNATIONAL

Hong Kong Stock Exchange(STRATEGIC) LIMITEDSOFTBANK CORP.

4

Management Policy and Results of Operations

1. Management Policy

Basic Corporate Management Policy
Anticipating the advent of a new technological paradigm driven by the digital information
revolution, SOFTBANK Group, a group of entrepreneurs, is paving the way to a new era
using creative destruction management. Although the outlook on the global economy isdifficult and stock markets do not appear to bounce back soon, SOFTBANK CORP.
(“SOFTBANK”) is certain that technological evolution in the digital information industry willcontinue over the next few decades, ultimately resulting in substantial social and economicchanges.
SOFTBANK Group is a driving force behind the proliferation of broadband, which is
expected to be key in bringing these changes and SOFTBANK Group will capitalize on theopportunities that such changes present, by continually pioneering and revolutionizing.
SOFTBANK anticipates substantial changes in each of the fields in which it operates.
To ensure fast, accurate decision making in the face of such changes, management decisions
must be based on expertise. To this end, SOFTBANK has established a three-tiered Groupstructure comprising a pure holding company, operation holding companies, and operatingcompanies. The operation holding companies manage the operating companies, whose aim
is to generate cash flow. As the pure holding company, SOFTBANK manages and supervise
the entire Group via the operation holding companies in order to maximize enterprise value of
the Group.

Management Targets and Basic Dividend Policy
The digital information industry, expected to continue to grow in the future, provides
opportunities to increase enterprise value based on investments in promising new businesses.
Reflecting this trend, SOFTBANK is concentrating managerial resources on Yahoo! BB andother broadband infrastructure and service businesses, thus making broadband businesses a
cornerstone of its strategy. Maximizing enterprise value by focusing on profitability and cash
flow-generating operations based on a monthly management evaluation constitutes
SOFTBANK’s corporate goal. Under the belief that returning profits to shareholders is one of
the Company's most important tasks, it is SOFTBANK’s policy to raise shareholder value andmake regular dividend payments.

Medium-to-Long Term Management Strategies
To date, Internet businesses have had a hard time growing in Japan due to a lack ofreasonably priced high-speed, unlimited-access service. However, under Japan's national IT

SOFTBANK CORP.

5

policy, which affirmed the country's commitment to IT, the Japanese government eased
regulations in the telecommunications industry, thereby vastly improving the industry
environment. SOFTBANK seized this opportunity and launched a high-speed Internet accessservice business utilizing asymmetric digital subscriber line (ADSL) technology. Yahoo! BB, ajoint venture between BB Technologies Corporation and Yahoo Japan Corporation, provides
an integrated service of a broadband portal, ADSL service, and Internet access service in linewith its corporate motto, "spreading broadband technology to help create a prosperous andpleasant culture."
The entire SOFTBANK Group is working to promote the development of strategicallyimportant broadband-related businesses. IP REVOLUTION, INC., which provides ultra highspeed, fiber optic Internet access; Akamai Technologies Japan K.K., which provides efficient
content delivery services; and other Group companies are working to build broadband
infrastructure. The development and provision of services and applications for broadband arebeing undertaken by businesses in the e-Commerce, e-Finance, Media & Marketing, andBroadmedia segments. The Group is also launching new broadband Internet businesses to
exploit the synergies generated between existing and new businesses.
Upgrading broadband infrastructure will also lead to rapid improvements in enterprisecommunication. IT penetration rate has been low in Japan, which has a high percentage ofsmall and medium-sized enterprises. Through SOFTBANK COMMERCE CORP., theCompany is working to provide these small and medium-sized companies with simple andeasy-to-implement solutions. SOFTBANK is also working to make its established Internet
businesses profitable by moving them into the broadband era.
On the other hand, with respect to overseas fund operations, the Company has
adjusted its approach in line with market conditions and will make strategic investments thatare fully adapted to future changes.

Issues to Be Resolved
As a proponent of entrepreneurial activities, SOFTBANK has launched a substantial numberof venture businesses, some of which show strong potential for future growth. To help thesepromising companies achieve profitability quickly and, ultimately, make initial public offerings(IPOs), SOFTBANK is providing enhanced guidance and management support. Thus,
SOFTBANK will focus and selectively weed out, if necessary, through mergers. As of the endof the fiscal 2002 interim period, SOFTBANK oversaw the withdrawal from operations of eightcompanies and is considering reorganizing or merging approximately ten others. Furthermore,
the Company will continue working to seek out and incubate new businesses, while cultivating
employees with strong management potential.

SOFTBANK CORP.

6

Policies Relating to the Realignment of Organization
As mentioned above, operation holding companies comprise the second-tier of SOFTBANK's
three-tiered management system. Each segment in the Group has one operation holding
company headed by a CEO who is responsible for the segment's business and affairs. Everymonth, the CEO Committee is convened to exchange reports on the current status of eachsegment's business activities, share information, and revise management policies. In this way,
the CEO Committee serves as a base from which synergies are generated. The ten-member
board of directors, whose governance and supervisory functions have been strengthened by
the inclusion of four outside directors, serves as the Company's highest decision-making body.
In addition, more than half the corporate auditors, who monitor the business and affairs of theboard of directors, come from outside the Company. Thus, by clearly dividing the Group's
management responsibilities, SOFTBANK has achieved sound corporate governance, which
it will continue to strengthen in the years ahead.

Basic Policy Concerning Related Parties
There were no significant transactions between SOFTBANK and related parties.

2. Results of Operations
Interim Period Performance
During the interim period, consolidated sales grew 1.7% from the previous interim period, to¥183,372 million, reflecting growth in sales from SOFTBANK COMMERCE CORP., Yahoo
Japan Corporation and other companies.
Consolidated operating loss decreased by ¥13,408 million from the previous interim
period to ¥8,704 million, due mainly to losses recorded by many businesses still in the startup phase.
SOFTBANK recorded consolidated ordinary loss of ¥16,150 million, decrease of¥17,188 million from the previous interim period. Exchange gain totaled ¥9,348 million, equity
in losses under the equity method amounted to ¥8,976 million and interest expense was¥7,903 million.
At the end of the interim period, SOFTBANK held approximately ¥137.5 billion in yendenominated receivables against SOFTBANK Holdings Inc., a wholly owned subsidiary, andrecognized an exchange gain since the yen depreciated at the end of June 2001, comparedwith the end of December 2000. SOFTBANK also held approximately U.S.$700 million in U.S.
dollar-denominated receivables against its overseas subsidiaries and recognized an
exchange loss since the yen appreciated at the end of September 2001, compared with theprevious fiscal year-end. Due to these factors, SOFTBANK recognized a net exchange gain

SOFTBANK CORP.

7

of ¥9,348 million.
Regarding equity in earnings/losses of affiliates, although SOFTBANK recognizedequity in earnings on its investments in Aozora Bank, Ltd., and other businesses, equity
losses were recorded for overseas fund businesses, which were mainly operated by
SOFTBANK Holdings Inc. As a result, SOFTBANK recorded net equity losses of ¥8,976
million.
Consolidated net income decreased by ¥90,625 million from the previous interim
period, resulting in net loss of ¥54,315 million. SOFTBANK recorded a ¥34,821 million loss on
valuation of investment securities and ¥16,045 million loss on valuation of investments inaffiliates due to a sluggish stock market. These losses were partially offset by the recognitionof ¥5,646 million gain on sales of investment securities and ¥11,441 million dilution gain fromchanges in equity interest.

Performance by Business Segment
In the e-Commerce segment, net sales grew 11% from the previous interim period, to¥129,499 million, reflecting sales growth from SOFTBANK COMMERCE CORP. and othercompanies. There were several factors behind SOFTBANK COMMERCE's sales growth. First,
by focusing on the sale of new products and the promotion of solution and service businesses,
the company succeeded in producing customizable products for markets in which it has astrong presence because of its multi-vender nature. Second, the company began handling awider range of products and broadened its sales channels, thus offsetting the negative effectsof lackluster market demand and weak individual product sales. An additional factor was thesale of products related to Yahoo! BB. At ¥1,135 million, operating income was virtuallyunchanged from the previous interim period. The ratio of operating income to sales decreased
primarily as a result of increased personnel expenses incurred when new businesses werelaunched.
Net sales from the e-Finance segment were virtually unchanged from the previous
interim period, totaling ¥10,532 million. Operating income fell ¥5,639 million from the previous
interim period, resulting in an operating loss of ¥3,574 million. The decrease in operating
income was due to two main factors. First, during the interim period, SOFTBANKINVESTMENT CORPORATION took aggressive steps to recognize valuation loss onmarketable securities to improve its balance sheet in light of a sluggish stock market. Second,
a considerable amount of establishment fees was recognized due to the establishment oflarge-scale investment funds during the previous interim period.
In the Media & Marketing segment, net sales was virtually unchanged from theprevious interim period, amounting to ¥24,023 million, while operating income decreased
65.0% from the previous interim period, to ¥615 million. These results in this segment consistof the consolidated results of SOFTBANK Media & Marketing Corp. and Key3Media Group,

SOFTBANK CORP.

8

Inc. The fall in operating income was due to expenses incurred by businesses in the start-up
phase and a decline in sales from SOFTBANK Publishing Inc., owing to a general downturn inthe publishing industry.
Net sales from the Broadmedia segment declined 17% from the previous interim
period, to ¥6,045 million, due to the restructuring of Digital Club Corporation, which caused a
decline in new subscriptions. As there were several businesses in the start-up phase,
operating income fell 74.0% to ¥294 million.
Net sales from the Internet Culture segment grew strongly, increasing 121.1% fromthe previous interim period, to ¥12,079 million. Although growth in advertising sales slowed
temporarily, sales from Yahoo! BB made a significant contribution, and Yahoo! Auctions
recorded steady sales growth. Operating income grew in line with sales, increasing 117.9%,
to ¥3,877 million.
Net sales from the Technology Services segment expanded 21.8% from the previous
interim period, to ¥8,451 million. The system solution business, mainly system building forYahoo! BB, contributed substantially to the segment's net sales. Operating income grew inline with sales growth, jumping 78.5%, to ¥440 million.
Net sales from the Internet Infrastructure segment amounted to ¥27 million, reflecting
progress made in the construction of a backbone network and the commencement of fiber
optic ultra high-speed Internet access services by IP REVOLUTION INC. during the term
under review. Operating under a low fixed-cost revenue model, the company has worked hard
to minimize risk by drawing on infrastructure owned by other companies. However, due to thelarge number of businesses still in the start-up phase, operating loss of ¥1,032 million wasrecognized.
Net sales from the Overseas Funds segment totaled ¥774 million due to management
fees, and operating loss amounted to ¥153 million. SOFTBANK is taking a hard look atmarket conditions and restructuring the overseas fund business, including the closure of eightoverseas offices and the reduction of the Company's overseas workforce by two-thirds(approximately 70 employees). As a result, administrative expenses regarding the overseas
offices, which had been recognized in this segment and the Others segment, are expected todecrease by approximately ¥2,700 million a year.
Net sales from the Others segment fell 25.4% from the previous interim period, to¥10,414 million, reflecting a reduction in sales recorded by SOFTBANK Korea Co., Ltd. Sales
from SOFTBANK Korea declined mainly due to decrease in sales of network devices.
Operating loss expanded ¥2,108 million, to ¥5,573 million, mainly due to administrative
expenses at overseas offices and losses incurred in conjunction with the establishment of BB
Technologies Corporation.

SOFTBANK CORP.

9Performance by Geographic Segment
In Japan, sales expanded 2.6% from the previous interim period, to ¥157,928 million,
reflecting growth in sales recorded by SOFTBANK COMMERCE CORP. and Yahoo Japan
Corporation. As there were a number of companies in the start-up phase, operating income
fell ¥6,834 million, resulting in an operating loss of ¥2,308 million.
In North America, sales increased 14.3% from the previous interim period, to ¥13,947
million, reflecting revenue contributions equal to the previous interim period from Key3MediaGroup, which accounts for the majority of the region's sales, and newly recorded fundmanagement fees. Due to increased administrative expenses at overseas offices, operating
income declined ¥1,545 million, resulting in an operating loss of ¥931 million.
In Europe, sales jumped 198.0% from the previous interim period, to ¥274 million,
due to newly recorded fund management fees from subsidiaries of SOFTBANK FINANCECORPORATION. Operating loss increased ¥178 million from the previous interim period, to¥359 million, due to increased administrative expenses at overseas offices and other factors.
In Korea, sales decreased 29.5% from the previous interim period, to ¥9,458 million,
owing to a decline in sales recorded by SOFTBANK Korea, which accounts for the majority of
the region's sales. The decline in sales resulted in an operating loss of ¥817 million, an
increase of ¥787 million compared with the previous interim period.

Discussion of Consolidated Balance Sheets
Current assets increased by ¥7,775 million from the previous fiscal year-end to ¥372,942
million. The increase resulted from the temporary assignment of approximately ¥21.7 billion in
assets, which are to be accounted for as leased assets of BB Technologies Corporation in
future, to the other current assets. The amount of other current assets also increased due tothe assignment of approximately ¥21.5 billion of E*TRADE Japan K.K.'s money trusts from
customers to other current assets, which resulted in a decline in cash and deposits.
Investments and other assets fell ¥54,662 million from the previous fiscal year-end to¥592,352 million, due to decreased investments in securities and other factors. Investments insecurities dropped ¥72,855 million, reflecting the recognition of unrealized loss on othersecurities or valuation loss on securities with respect to overseas fund businesses, overseas
direct investments, and businesses in Japan. Deferred tax assets increased by ¥16,812
million.
Liabilities increased ¥41,371 million from the previous fiscal year-end, to ¥703,740
million. The current position of corporate bonds, including those to be redeemed within one
year, increased by ¥118,190 million due to the issuance of ¥80 billion in corporate bonds, andthe conversion of Key3Media Group's long-term bank loans into corporate bonds amounting
to US$300 million. The sum of ¥80 billion, which was procured through the issuance ofcorporate bonds and will be the underlying assets for repayment of bonds to mature in

SOFTBANK CORP.

10

2002 and 2003, are being used to repay short-term borrowings (including commitment lines),
which increased during the interim period. On the other hand, deferred tax liabilities
decreased ¥16,926 million.
Shareholders' Equity declined ¥71,831 million, to ¥352,429 million, due to a fall inconsolidated retained earnings. The equity ratio fell from 37.0% at the previous fiscal yearend, to 31.4%.

Discussion of Consolidated Cash Flows
Although cash inflows were recorded for financing activities, outflows were recorded for both
operating and investing activities, resulting in a net outflow for the interim period. The balanceof cash and cash equivalents at the end of the interim period dropped ¥12,283 million fromthe previous fiscal year-end, to ¥146,821 million.
Cash used for operating activities amounted to ¥53,995 million, an improvement of¥25,222 million compared with the previous interim period. Cash decreased ¥36,961 million
because BB Technologies Corporation recorded future leased assets as current assets
temporarily, and tax payments decreased to ¥22,419 million.
Cash used for investing activities totaled ¥24,254 million, ¥7,246 million improvementfrom the previous interim period. This is primarily attributable to an outflow of ¥37,318 million
incurred through the purchase of marketable and investment securities and an ¥8,470 million
outflow due to purchases of property and equipment and intangible assets. These outflows
were partially offset by ¥29,107 million in proceeds from the sale of marketable andinvestment securities.
Cash provided by financing activities was ¥63,509 million, an improvement of¥22,370 million compared with the previous interim period. This was primarily due toproceeds from bond issuances of ¥123,691 million by SOFTBANK and Key3Media Group,
which offset a ¥38,946 million cash outflow resulting from the repayment of Key3MediaGroup's long-term debt.

SOFTBANK CORP.

11

CONSOLIDATED BALANCE SHEETS

FY2002 interim
As of September 30, 2001
Amount%(Millions of yen; amounts less than one million yen are omitted.)
FY2001 interim
FY2001
Increase
As of March 31,2001
As of September 30, 2000
（Decrease）
Amount%Amount%ASSETS
Current assets
Cash and deposits
Trade notes and accounts receivable
Marketable securities
Inventories
Deferred tax assets
Other current assets
Less : Allowance for doubtful accounts
Total current assets¥128,824
67,784
19,45825,874
8,175
124,461(1,637)
372,94233.2¥170,880
71,147
14,82919,503
10,62080,459(747)
366,69334.0¥(42,056)(3,363)4,629
6,371(2,444)44,002(889)
6,248¥141,056
81,28629,343
23,413
8,234
83,075(1,244)365,166

31.9

21,7401.9

11,3001.0

10,43913,5291.2

12.0

39,63738,326
14,78918,296
111,049

10.3

9,324
5,653
1,251
6,949
23,17841,68041,093
15,07921,920119,774

10.4

419,997
2,862
26,639134,514
9,971(1,632)592,35252.7

434,207
3,001
476
136,156
16,740(1,947)
588,63554.6(14,209)(139)
26,162(1,642)(6,768)314
3,717

492,853
3,033
9,826
133,303
9,440(1,442)647,014

56.5

2,593

0.2

467

0.1

2,126

598

0.0

¥1,123,856

100.0¥1,078,146

100.0¥45,710¥1,146,083

100.0

Non current assets
Property and equipment

Intangible assets, net
Goodwill
Trade names
Consolidation adjustment
Other intangible assets
Total intangible assets

48,962
43,97916,04025,246134,228

Investments and other assets
Investment securities
Long-term loan receivables
Deferred tax assets
Investments in partnerships
Other assets
Less : Allowance for doubtful accounts
Total investments and other assets

Deferred charges

TOTAL ASSETSSOFTBANK CORP.

12

CONSOLIDATED BALANCE SHEETS(Millions of yen; amounts less than one million yen are omitted.)
FY2002 interim
FY2001 interim
FY2001
Increase(As of March 31,2001)(As of September 30,2001) (As of September 30,2000)（Decrease）
Amount%Amount%Amount%LIABILITIESCurrent liabilities
Trade notes and accounts payable
Short-term borrowings
Commercial paper
Current portion of straight bonds
Current portion of convertible bonds
Income taxes payable
Deferred tax liabilities
Accrued expenses
Deferred earnings
Allowance for sales returns
Other current liabilities
Total current liabilities¥53,267
132,316
20,00045,469
6,586
7,329
3,407
11,14013,637
1,335
88,868383,357¥53,391
112,60950,00032,38533.5¥(124)
19,706(30,000)
13,084
6,586(20,734)(2,306)
4,202
(473)
123
32,60922,673¥63,935
128,482
30,00021,4006,614
23,428298
10,654
11,3291,471
81,695379,309

175,368
51,57832,372
152
23,587
283,059

24.7

-

34.1

28,063
5,713
6,937
14,111
1,212
56,259360,68325.1

86,325(6,544)(37,527)(13,666)(204)
21,40149,785

33.1

Long-term liabilities
Straight bonds
Convertible bonds
Long-term debt
Deferred tax liabilities
Accrued retirement benefits
Other Liabilities
Total long-term liabilities

269,490125
13,476
12,337372
24,581
320,382

28.5

183,164
6,669
51,00426,003576
3,179
270,597

TOTAL LIABILITIES

703,740

62.6

631,28158.6

72,458662,368

57.8

MINORITY INTERESTS

67,687

6.0

62,9205.8

4,766

59,453

5.2

Common stock

137,80812.3

125,881

11.7

11,926

137,630

12.0

Additional paid-in capital

162,17214.4

150,200

13.9

11,972

161,953

14.1

Retained earnings

38,505

3.4

93,177

8.7(54,671)

94,8038.3

Net unrealized gain (loss) on other securities(13,569)(1.2)

15,292

1.4(28,861)

18,435

1.6

Translation adjustments

27,512

2.5

(602)

(0.1)

28,115

11,441

1.0-

SHAREHOLDERS' EQUITY

Less: Treasury stock
TOTAL SHAREHOLDERS' EQUITYTOTAL LIABILITIES , MINORITY INTERESTSAND SHAREHOLDERS' EQUITYSOFTBANK CORP.

(0)

(0.0)

(4)

(0.0)

3

(2)

(0.0)

352,42931.4

383,94435.6(31,515)424,26137.0¥1,123,856

100.0¥1,078,146

100.0¥45,710¥1,146,083

100.0

13

CONSOLIDATED STATEMENTS OF INCOME
FY2002 interim(April 2001 throughSeptember 2001)
Amount%(Millions of yen; amounts less than one million yen are omitted.)
FY2001 interim
FY2001
Increase(April 2000 through(April 2000 through(Decrease)
March 2001)
September 2000)
Amount%Amount%Net sales from non-financing business¥172,656

94.2¥169,878

94.3¥2,777¥365,201

92.0

Cost of sales

137,974

75.3

137,84576.5

128291,50773.4

Gross profit

34,682

18.9

32,033

17.8

2,648

73,693

18.6

Selling, general and administrative expenses

39,66921.6

29,27816.3

10,39170,493

17.8

Operating income (loss) from non-financing business(4,987)

(2.7)

2,755

1.5

(7,743)

3,200

0.8

Revenue from financing business

10,715

5.8

10,3585.7

357

31,903

8.0

Expenses of financing business

14,433

7.8

8,410

4.6

6,022

18,672

4.7

Operating income (loss) from financing business(3,717)

(2.0)

1,948

1.1

(5,665)

13,231

3.3

Total operating income (loss)(8,704)

(4.7)

4,703

2.6

(13,408)

16,431

4.1

Interest income
Exchange gains, net
Other non-operating income
Non-operating income

1,439
9,348
2,414
13,203

7.2

1,092
6,590
4,199
11,883

6.6

346
2,758
(1,784)
1,320

4,363
28,115
9,895
42,374

10.7

Interest expense
Equity in losses under the equity method, net
Other non-operating expenses
Non-operating expenses

7,903
8,976
3,768
20,648

11.3

4,155
6,847
4,546
15,548

8.6

3,748
2,129
(777)
5,100

12,263
19,765
6,710
38,7409.7

Ordinary income (loss)(16,150)

(8.8)

1,037

0.6

(17,188)

20,065

5.1

Gain on sale of investment securities
Dilution gain from changes in equity interest
Other special income
Special income

5,646
11,441
312
17,3999.5

48,34231,007201
79,551

44.1(42,696)(19,565)
110(62,151)

119,054
49,712
1,158
169,925

42.8

Loss on sale of investment securities
Loss on valuation of investment securities
Loss on valuation of investments in affiliates
Loss on discontinued operations
Dilution loss form changes in equity interest
Other special losses
Special losses

5,160
34,821
16,045
3,429
11,801
71,257

38.9

7,952
256
4,081
12,2906.8

5,160
34,821
16,045(7,952)
3,172
7,720
58,967

23,76429,23028,7618,604
1,558
11,062102,981

26.0

Income (loss) before income taxes and minority interests(70,008)(38.2)

68,29837.9(138,306)

87,00921.9

Income taxes -current
Income taxes -deferred

5,733(18,731)3.1(10.2)

35,381(3,833)

19.6
(2.1)

(29,647)(14,898)

69,043(20,427)

17.4
(5.1)

Minority interests

2,694

1.5

(440)

(0.3)

3,134

(1,762)(0.4)

Net income (loss)¥(54,315)(29.6)¥36,31020.1¥(90,625)¥36,631

9.2

SOFTBANK CORP.

-

14

CONSOLIDATED STATEMENTS OF RETAINED EARNINGS

FY2002 interim(April 2001 throughSeptember 2001)
Retained earnings at the beginning of the period
Increase due to exclusion of affiliates
under equity method
Increase due to merger
Increase in retained earnings

Cash dividends paid
Bonuses to directors
Decrease due to exclusion of affiliates underequity method
Net decrease due to companies newly included
or excluded from consolidation
Decrease in retained earnings¥94,803(Millions of yen; amounts less than one million yen are omitted.)
FY2001 interim
FY2001
Increase(April 2000 through(April 2000 through（Decrease）
September 2000)
March 2001)¥59,091¥35,711¥59,091

624

42
46
88

582
(46)
536

1,385
46
1,431

2,356
46

2,203
102

153
(55)

2,203
117

203

1

624
-

203

-

0
2,607

7
2,312

(7)
294

29
2,351

Net income (loss)(54,315)

36,310(90,625)

36,631Retained earnings at the end of period¥38,505¥93,177¥(54,671)¥94,803

SOFTBANK CORP.

15

CONSOLIDATED STATEMENTS OF CASH FLOWS(Millions of yen; amounts less than one million yen are omitted.)
FY2002 interim
FY2001 interim
FY2001(April 2001 through (April 2000 through(April 2000 throughSeptember 2000)
September 2001)
March 2001)
I

II

Cash flows from operating activities:
Income (loss) before income taxes
Depreciation and amortization
Equity in losses under the equity method
Dilution gains from changes in equity interest, net
Loss on valuation of investment securities
Gains on sale of marketable and investment securities, net
Exchange gains, net
Interest and dividend income
Interest expense
Loss on discontinued operations
Decrease (increase) in receivables- trade(Decrease) increase in payables-trade
Increase in other receivables
Increase in other payables
Other, net
Subtotal¥(70,008)
4,188
8,976
(8,012)50,866(491)(7,961)(1,491)
7,903
18,558(15,308)(36,961)
20,450
4,991(24,300)¥68,298
3,470
6,847(30,750)(48,156)(6,457)(1,108)
4,155
7,952
7,563
(458)
(20,680)
2,785(4,855)(11,395)¥87,009
8,072
19,765(48,154)
57,991(95,404)(28,219)(4,377)
12,263
16,246(4,259)10,902(48,644)
24,759(5,777)2,174Interest and dividends received
Interest paid
Payments for income taxes
Net cash used for operating activities

1,418(8,693)(22,419)(53,995)

966(4,306)(64,481)(79,217)

4,103(11,823)(86,053)(91,598)(8,470)(37,318)
29,107(5,033)(9)
767(7,724)3,379
1,046(24,254)(8,201)(146,927)
38,01557
13,106(5,024)
1,188
82,906(6,622)(31,501)(16,241)(233,131)
104,224(362)
66
20,965(6,647)
5,154
82,906453(42,612)2,430(3,359)50,000(60,000)
2,200(38,946)
123,691(9,550)(2,336)(620)
63,50924,351
23,63050,00038,50237,54750,000(20,000)
63,491(142,102)
27,867(26,603)(2,200)(1,952)
24,548Cash flows from investing activities:
Purchases of property and equipment and intangible assets
Purchase of marketable and investment securities
Proceeds from sale of marketable and investment securities
Additional investments in newly consolidated entities
Proceeds from sale of interests in previously consolidated subsidiaries
Proceeds from sale of interest in consolidated subsidiaries
Increase of loans
Collections of loans
Proceeds from sale of assets held for sale
Other, net
Net cash used for investing activities

III Cash flows from financing activities:
Proceeds from issuance of shares to minority shareholders(Decrease) Increase in short-term borrowings
Proceeds from commercial paper
Payments of commercial paper
Proceeds from long-term debts
Repayment of long-term debts
Proceeds from issuance of bonds
Repayment of bonds
Cash dividends paid
Other, net
Net cash provided by financing activities
IV Effect of exchange rate changes on cash and cash equivalents
V Net decrease in cash and cash equivalents

61,983(136,878)
13,266(2,193)
6,979
41,138

2,454

8,314

33,461(12,286)(61,266)(76,200)

2

517

517

-

(18,724)(22,444)-(10,827)(10,827)

VI Net increase in cash and cash equivalents due to the companies newly
consolidated
VII Decrease in cash and cash equivalents due to exclusion of consolidated
entities
VIII Decrease in cash and cash equivalents due to change in accounting
policyIX Cash and cash equivalents at the beginning of the period

159,105

268,060

268,060

X Cash and cash equivalents at the end of the period¥146,821¥177,759¥159,105SOFTBANK CORP.

16

Basis of Presentation of Consolidated Financial Statements
1 Scope of Consolidation
As of September 30, 2001, the company consolidated 27７ subsidiaries. 18 subsidiaries were not consolidated, as their influence on the
consolidated statements was immaterial in the aspects of total assets, sales, net income and retained earnings.
Changes in scope of consolidation for the period ended September 30, 2001 were as follows;<Increase；including partnerships>
1 Emtorage Broadcommunications Inc.
2 Tokyo Metallic Communications Corp.
3 SBI E2-Capital Limited

Newly established
Newly invested
Newly invested

Other 72 companies<Decrease；including partnerships>
1 SB K&K CORPORATION

Liquidation

Other 13 companies

2 Application of the equity method
119 affiliates and 6 non-consolidated subsidiaries were accounted for under the equity method at September 30, 2001.
Changes in application of the equity method for the period ended September 30, 2001 were as follows;<Increase；including partnerships>
1 Blue Planet Corporation
2 WEB PORTAL, INC.
3 SB Life Science Ventures I, L.P

Newly invested
Newly invested
Newly invested

Other 21 companies<Decrease；including partnerships>
1 DigitBrain Inc. (former name; Brain.Com, Inc)
2 SpeedNet Inc.
3 PROFECIO, Inc (former name; PASONA SOFTBANK, INC)
4 E* TRADE Group, Inc.

Equity decrease due to merger
Equity decrease due to new share issuance
Disposal
Equity decrease due to sale of shares

Other 12 companies

3 Fiscal year end
Fiscal year ends of consolidated subsidiaries in terms of domestic and overseas are as follows;<Fiscal year end>
March end
(as same as consolidated B/S date)
May endJune end
July end
August end
September end
October end
December end
February end

SOFTBANK CORP.

<Domestic><Overseas>

97

11

1
7
1
1
7
1
16
1

40
94
-

17

4 Summary of Significant Accounting Policies[1] Evaluation standards and methods for major assets(1) Marketable securities and investment securities
Held-to-maturity debt securities :Other securities:
With market quotations:Without market quotations:

Stated at amortized cost

Stated at fair value, which represents the market prices at the balance sheet date
(Unrealized gain/loss are included as a separate component in shareholders' equity,
net of tax, while cost of sales is determined primarily based on the moving-average method)
Carried at cost, primarily based on the moving-average method(2) Inventories
Inventories held by the company and its domestic consolidated subsidiaries are carried at cost, primarily based on the moving-average method.
Inventories held by the foreign consolidated subsidiaries are valued at the lower of cost or market. The cost is determined based on thefirst-in, first-out method.
[2] Depreciation and amortization(1) Property and equipment:
Depreciation at the company and its domestic consolidated subsidiaries is computed primarily based on the declining-balance method.
Depreciation at the foreign consolidated subsidiaries is based on the estimated useful lives using the straight line method , in accordancewith the accounting principles generally accepted and applied in their respective countries of domicile.
(2) Intangible assets:
The straight-line method.
(The US consolidated subsidiaries ceased the amortization of the goodwill, due to applying SFAS No.142 from this period.)[3] Accounting principles for major allowances and accruals(1) Allowance for doubtful accounts is provided based on the aggregate amount of estimated credit losses for doubtful receivables plus anamount for the receivables other than doubtful receivables calculated using historical written-off experience from certain prior periods.
(2) Allowance for sales returns:
Allowance for sales returns is provided based on the estimated losses resulting from possible future returns.
(3) Accrued retirement benefits
For the Company and most of its domestic consolidated subsidiaries, accrued pension benefits are calculated based on projected benefit
obligations and fair value of the plan assets at the balance sheet date. Actuarial gains and losses are recognized in the consolidated
statements of income in the year immediately, subsequent to the fiscal year of occurrence.

[4] Translation of foreign currency transactions and accounts
Assets and liabilities denominated in foreign currencies are translated using foreign exchange rates prevailing at the respective balance
sheet dates. Exchange gains or losses are included in the net income when incurred
The translation of revenues and expenses in the financial statements of foreign consolidated subsidiaries into Japanese yen is performedby using the average exchange rate during the period. The assets and liabilities of foreign consolidated subsidiaries are translatedusing the foreign exchange rates prevailing at the balance sheet dates, and capital stock is translated using the historical rates.
Foreign currency financial statement translation differences are stated as a component of shareholders' equity, except that the portion
pertain to minority shareholders is included in minority interests.
[5] Finance lease
Finance leases other than those transferring the ownership of the leased assets to lessees at the end of the lease term are accounted
for in the same manner as operating leases.
[6] Accounting method of consumption taxes
The consumption taxes are accounted for using net-of-tax method.

5 The Scope of Cash and Cash Equivalents in the Interim Consolidated Statements of Cash Flow
Cash and cash equivalents in the consolidated statements of cash flow are composed of cash on hand, bank deposits withdrawable on demandand highly liquid investments purchased with initial maturities of three months or less and which represent low risk of fluctuation in value.

SOFTBANK CORP.

18

(Additional information)[1] Effective April 1, 2001, the consolidated subsidiaries engaged in securities business adopted the "Uniform Accounting Standards ofSecurities Companies", issued by Japan Securities Dealers Association on September 28, 2001.
Principal changes in the presentation of the consolidated balance sheet are as follows,(1) In accordance with the "Securities and Exchange Law, No.47, Paragraph 3", segregated cash from customers (money trust

only) included in "cash and deposits" in prior years, is now included in "other current assets" in the assets section.
As a result, cash and deposits decrease by 21,577 million yen, and other current assets increased by the same amount, as
compared with that reported under the previous accounting standard.
(2) Securities received as collateral, recorded as "other current assets" (11,837 million yen as of 9/30/2000, and 27,368 million

yen as of 3/31/2001) in the assets section and "other current liabilities" (11,835 million yen as of 9/30/2000, and 27,365
million yen as of 3/31/2001) in the liabilities section, are no longer recognized on the balance sheet.

[2] Statement of Financial Accounting Standards No.142: Goodwill and Other Intangible Assets

The U.S. consolidated subsidiaries have adopted SFAS No.142 from this period, which requires an impairment test at least
annually and also when other events warrant, for goodwill and indefinite-lived intangible assets, rather than recognizing
periodic amortization charges.
The consolidated subsidiaries, other than those in U.S., are recording the amortization of the goodwill in the same manneras the prior periods.

SOFTBANK CORP.

19

NOTES
1 Accumulated depreciation of property and equipment
As of September 30, 2001
9,805 million yen

As of September 30, 2000
5,127 million yen

As of March 31, 2001
6,516 million yen

As of September 30, 2000
330 shares

As of March 31, 2001
465 shares

2 Number of treasury stock held by the Company
As of September 30, 2001
175 shares

3 Assets and liabilities of the silent investment association
The assets and liabilities belonging to the silent investment association, net of deposits from the association members, at the end of periods are as follows;

Cash and deposits
Marketable securities
Other current assets- investments
Other current assets- other
Investment securities
Investments in partnerships
Other current liabilities
Other non-current liabilities (advancereceived and held by the silent association)

SOFTBANK CORP.

As of September 30, 2001
7,167 million yen- million yen
14,710 million yen
260 million yen
5,501 million yen
1,392 million yen
811 million yen

As of September 30, 2000
35,259 million yen
13,061 million yen
10,359 million yen
385 million yen
5,647 million yen
1,419 million yen
1,033 million yen

As of March 31, 2001
5,689 million yen
235 million yen
15,489 million yen
305 million yen
5,291 million yen
1,392 million yen
482 million yen

28,219 million yen

65,099 million yen

27,921 million yen

204 Assets pledged as collateral and secured liabilities(1) Assets pledged as collateral related to lease contracts
FY2002 interim (as of September 30, 2001)
Assets pledged as collateralType of collateral

Carrying amount Type of security

Trade notes and accounts receivable
Other current assets(accounts receivable -other)
Total
Notes

(Millions of yen; amounts less than one million yen are omitted.)
Secured liabilities

894

Mortgage

13

Mortgage

908

Type of collateral

344

Total

344

(Millions of yen; amounts less than one million yen are omitted.)
Secured liabilities

Carrying amount

Trade notes and accounts receivable
Other current assets(accounts receivable - other)
Total

Type of security

Account

1,010

Mortgage

Trade notes and accounts payable

481

15

Mortgage
Total

481

1,026

Carrying amountThe collateral for the future lease liabilities of 12,682 million yen , of which 481 million yen was accounts payable, was provided by
mortgaging credits that certain consolidated subsidiaries held for the future cash flow from customers and consigned broadcasting
companies based on marketing agreements, etc. The balance of these credits as of September 30, 2000 were 1,010 million yen in accounts
receivable and 15 million yen in other current assets.

FY 2001 (As of March 31, 2001)(Millions of yen; amounts less than one million yen are omitted.)
Secured liabilities

Assets pledged as collateralType of collateral

Carrying amount

Trade notes and accounts receivable
Other current assets(accounts receivable - other)
Total
Notes

Carrying amountThe collateral for the future lease liabilities of 9,753 million yen, of which 344 million yen was accounts payable, was provided by
mortgaging credits that certain consolidated subsidiaries held for the future cash flow from customers and consigned broadcasting
companies based on marketing agreements, etc. The balance of these credits as of September 30, 2001 were 894 million yen in accounts
receivable and 13 million yen in other current assets.

FY2001 interim (as of September 30, 2000)
Assets pledged as collateral

Notes

Account
Trade notes and accounts payable

Type of security

Account963

Mortgage

Trade notes and accounts payable

401

12

Mortgage
Total

401

976

Carrying amountThe collateral for the future lease liabilities of 11,225 million yen, of which 401 million yen was accounts payable, was provided by
mortgaging credits that certain consolidated subsidiaries held for the future cash flow from customers and consigned broadcasting
companies based on marketing agreements, etc. The balance of these credits as of March 31,2001 were 963 million yen in accounts
receivable and 12 million yen in other current assets.

(2) Assets pledged as collateral related to deposits received for securities loaned
FY2002 interim (as of September 30, 2001)
No items applicable for FY2002 interim.

FY2001 interim (as of September 30, 2000)
Assets pledged as collateralType of collateral

Carrying amount

Other current assets(marketable securities in custody)
Notes(Millions of yen; amounts less than one million yen are omitted.)
Secured liabilities

1,104Type of security

Account

Mortgage

Other current liabilities(Deposits received for securities loaned)

6,281

In addition to the above, collateral securities received from customers on margin transaction (1,695 million yen) have been
provided to Japan Securities Finance Company as collateral for securities borrowed as of September 30, 2000.

FY 2001 (as of March 31, 2001)(Millions of yen; amounts less than one million yen are omitted.)
Secured liabilities

Assets pledged as collateralType of collateral
Other current assets(marketable securities in custody)
Notes

Carrying amount

Carrying amount
2,351

Type of security

Account

Mortgage

Other current liabilities(Deposits received for securities loaned)

Carrying amount
13,514

In addition to the above, collateral securities received from customers on margin transaction (3,732 million yen) have been
provided to Japan Securities Finance Company as collateral for securities borrowed as of March 31,2001.

SOFTBANK CORP.

21

4 Assets pledged as collateral and secured liabilities (continued)(3) Assets pledged as collateral related to borrowings
FY2002 interim (as of September 30, 2001)
Assets pledged as collateralType of collateral(Millions of yen; amounts less than one million yen are omitted.)
Secured liabilities

Carrying amount Type of security

Account

Carrying amount

Cash and deposits (time deposits)

23

Mortgage

Account payable-other172

Property and equipment

138

Mortgage

Short-term borrowings

277

Property and equipment

1,993

MortgageLong-term debts

237

Total

2,156

Total

687

FY2001 interim (as of September 30, 2000)
Notes
The assets of Key3Media, a U.S. consolidated subsidiary of the Company, and the common stock of Key3Media's subsidiaries were provided ascollateral for long-term debts of US$330 million (35,673 million yen) at June 30, 2000.

FY2001 (as of March 31, 2001)(Millions of yen; amounts less than one million yen are omitted.)
Secured liabilities

Assets pledged as collateralType of collateral

Notes

Type of security

Account

Cash and deposits (time deposits)

Carrying amount48

Mortgage

Short-term borrowings

Carrying amount
20,564

Property and equipment

1,026

MortgageLong-term debts

124

Investment securities

69,519Mortgage

Total

70,594

Total

20,689In addition to the above, the assets of Key3Media, a U.S. consolidated subsidiary of the Company, and the common stock of Key3Media's subsidiaries
were provided as collateral for long- term debts of US$298 million (34,243 million yen) and short-term borrowings of US$1 million (181million yen)at March31, 2001.

5 Line of Credit (not used)
As of September 30, 2001
24 million yen

As of September 30, 2000
‐ million yen

As of March 31, 2001
42 million yen

6 Notes receivable maturing on the period end date
Trade notes receivable are settled on the date of clearance.
The following amounts of notes receivable matured on the period end dates were included in the balances of trade notes and accounts receivable,
because the last day of the respective period was a non-business day.
Notes receivable
As of September 30, 2001
39 million yen

As of September 30, 2000
938 million yen

As of March 31, 2001
983 million yen

7 Dilution gain (loss) from changes in equity interest
Due to capital transactions by investees such as initial public offerings, the Company's shareholding percentages of some investees were diluted.
The major dilution gain (loss) from changes in equity interest for the period ended September 30, 2001 are as follows:

UTStarcom, Inc.
Yahoo! Inc.
E*TRADE Group, Inc.
SOFTBANK INVESTMENT INTERNATIONAL(STRATEGIC) LIMITED
Global Sports, Inc.
SOFTBANK INVESTMENT CORPORATION
ClearCross Inc.
Nihon Ariba K.K.
SOFTBANK FRONTIER SECURITIES Co.,Ltd.
cyber communications inc.

SOFTBANK CORP.

Gain
6,004 million yen
3,830
517
347
227
165
164

(Loss)- million yen(876)(1,502)
(274)
(286)
(260)
-

22

8 Valuation loss on investments in subsidiaries and affiliates
Valuation loss on investments in subsidiaries and affiliates recognized in the consolidated statements of income for the periods ended
September 30, 2001 are as follows:(1) Valuation loss on investment in consolidated subsidiaries
As of September 30, 2001
192 million yen

As of September 30, 2000-

As of March 31, 2001
168 million yen(2) Valuation loss on investment in affiliates accounted for under the equity method
As of September 30, 2001
15,852 million yen

As of September 30, 2000-

As of March 31, 2001
28,592 million yen

9 Consolidated statements of cash flow
Reconciliation of cash and cash equivalents to amounts included on the consolidated balance sheet.
As of September 30, 2001

As of September 30, 2000

As of March 31, 2001

Cash and deposits

128,824 million yen

170,880 million yen

141,056 million yen

Marketable securities

19,45814,82929,343Time deposits with original
maturity over three(1,334)(7,874)(2,009)--(10,590)

(127)

(76)

(95)

-

-

1,400

Deposits received from customersof the consolidated subsidiaries
engaged in securities business
Stocks and bonds with original
maturity over three months
Cash equivalents included in inventories
of consolidated subsidiaries engaged
in securities business
Cach and cash equivalents

SOFTBANK CORP.

146,821 million yen

177,759 million yen

159,105 million yen

2310 Lease transactions
10-1. Finance leases in which the ownership of leased assets is not transferred to lessees at the end of lease term
(as a lessee)(1) Amounts equivalent to acquisition costs, accumulated depreciation and costs less accumulated depreciation at the end of periods
As of September 30, 2001
Property and equipment
Acquisition costs
Less: Amount equivalent to accumulated
depreciation
Amount equivalent to costs, less accumulated
depreciation at the end of the period

Software (Intangible assets)
Acquisition costs
Less: Amount equivalent to accumulated
amortization
Amount equivalent to costs, less accumulated
amortization at the end of the period

Total
Acquisition costs
Less: Amount equivalent to accumulated
depreciation
Amount equivalent to costs, less accumulated
depreciation at the end of the period

As of September 30, 2000

As of March 31, 2001

19,147

16,225

15,186(7,188)
11,959 million yen(2,808)13,417 million yen(4,463)
10,722 million yen

297

1,206

256

(54)
242 million yen(205)
1,000 million yen(46)
209 million yen

19,445

17,431

15,443(7,242)
12,202 million yen(3,014)
14,417 million yen(4,510)10,932 million yen

As of September 30, 2001

As of September 30, 2000

As of March 31, 2001

4,231
9,148
13,379 million yen

3,514
11,255
14,770 million yen

3,136
8,552
11,689 million yen(2) The future lease payments for finance lease at the end of the periods

Due within one year
Due after one year
Total(3) Lease payments, amounts equivalent to depreciation and interest expenses for the periods
For the period ended
September 30, 2001

For the period ended
September 30, 2000

For the period ended
March 31, 2001

Lease payments

2,307 million yen

2,058 million yen

4,221 million yen

Amount equivalent to depreciation expenses

2,198 million yen

1,729 million yen

4,256 million yen

452 million yen

538 million yen

1,029 million yen

Amount equivalent to interest expense(4) Calculation method of amount equivalent to depreciation and interest expenses
The amount equivalent to depreciation is computed using the straight line method over the lease term, assuming no remaining amount.
The amount equivalent to interest expense, which is calculated by subtracting acquisition costs from total lease payments, is allocated over lease
periods based on the interest method.

SOFTBANK CORP.

24

10 Leases transaction (continued)
10-1. Finance leases in which the ownership of leased assets is not transferred to lessees at the end of lease term.
(as a lessor)(1) Acquisition costs, accumulated depreciation and costs less accumulated depreciation at the end of periods
As of September 30, 2001

As of September 30, 2000

As of March 31, 2001

Property and equipment
Acquisition costs
Less: Accumulated depreciation
Costs, less accumulated depreciation

1,009
(135)
873 million yen

260
(23)
237 million yen

478
(41)
436 million yen

Software (Intangible assets)
Acquisition costs
Less: Accumulated amortization
Costs, less accumulated amortization

370
(85)
285 million yen

221
(20)
200 million yen

441
(62)
378 million yen

Total
Acquisition costs
Less: Accumulated depreciation
Costs, less accumulated depreciation

1,380
(221)
1,158 million yen

481
(43)
437 million yen

919
(104)
815 million yen(2) The future lease receivables for the finance lease at the end of the periods
As of September 30, 2001
Due within one year
Due after one year
Total

As of September 30, 2000

253
930
1,183 million yen

84
358
443 million yen

As of March 31, 2001
248
959
1,208 million yen(3) Lease income, depreciation and amount equivalent to interest income for the periods
For the period ended
September 30, 2001

For the period ended
September 30, 2000

For the period ended
March 31, 2001

Lease income

136 million yen

45 million yen

180 million yen

Depreciation

117 million yen

38 million yen

118 million yen

Amount equivalent to interest income

32 million yen

11 million yen

38 million yen(4) Calculation method of amount equivalent to interest income
The amount equivalent to interest income, which is calculated by subtracting acquisition costs from total lease
incomes and estimated residual value, is allocated over lease periods based on the interest method.

10-2. Non-cancelable operating lease transactions(as a lessee)
The future lease payments for non-cancelable operating lease
As of September 30, 2001
Due within one year
Due after one year
Total

643
6,279
6,923 million yen

As of September 30, 2000
696
1,394
2,091 million yen

As of March 31, 2001
1,000
3,245
4,245 million yen(as a lessor)
No transactions applicable for the current period.

SOFTBANK CORP.

25

SEGMENT INFORMATION
1. Business Segment Information(1) FY2002 interim (for the period ended September 2001)(Millions of yen; amounts less than one million yen are omitted.)
e-Commerce

e-Finance

Media &
MarketingBroadmedia

Internet
CultureTechnology
Internet
Services
Infrastructure

Overseas
Funds¥121,008¥9,941¥23,581¥5,903¥8,113¥4,280¥27¥774¥9,740¥183,372

-

8,491

591

441

141

3,965

4,170

0

-

674

18,476(18,476)-

129,499

10,532

24,023

6,045

12,079

8,451

27

774

10,414

201,849(18,476)

183,372

Others

Total

Consolidated
Total

Elimination

Net Sales(1) Customers(2) Inter-segment
Total¥183,372

Operating expenses

128,364

14,106

23,407

5,751

8,201

8,010

1,060

928

15,987

205,819(13,742)

192,077

Operating income (loss)¥1,135¥(3,574)

¥615

¥294

¥3,877¥440¥(1,032)¥(153)¥(5,573)¥(3,970)¥(4,734)¥(8,704)(2) FY2001 interim (for the period ended September 2000)(Millions of yen; amounts less than one million yen are omitted.)Media &
MarketingBroadmedia

Internet
CultureTechnology
Services

Overseas
Funds

Others

Total

Consolidated
Total

e-Commerce

e-Finance

Elimination¥114,905¥10,358¥23,194¥7,284¥5,072¥5,832-¥13,589¥180,236

-

1,805

466

640

1

391

1,104

-

369

4,778

(4,778)-116,710

10,824

23,835

7,285

5,464

6,937

-

13,958185,015(4,778)180,236

Net Sales(1) Customers(2) Inter-segment
Total¥180,236

Operating expenses

115,547

8,759

22,077

6,151

3,684

6,690

111

17,422

180,445(4,912)

175,533

Operating income (loss)¥1,162¥2,064¥1,758¥1,133¥1,779¥247¥(111)¥(3,464)¥4,569¥133¥4,703

Technology
Services

Internet
Infrastructure(3) FY2001 (for the period ended March 2001)(Millions of yen; amounts less than one million yen are omitted.)Media &
MarketingBroadmedia

Internet
CultureOverseas
Funds

Others

Total

Consolidated
Total

e-Commerce

e-Finance

Elimination¥253,943¥30,626¥52,414¥12,998¥12,481¥11,728-¥1,277¥21,635¥397,105

-

4,577

778

847

3

742

2,743

-

463

840

10,997(10,997)-258,52131,40453,262

13,001

13,223

14,471-

1,741

22,476408,102(10,997)

397,105

Net Sales(1) Customers(2) Inter-segment
Total¥397,105

Operating expenses

256,751

17,96647,358

11,946

8,521

13,996

1,068

1,501

28,141

387,252(6,578)

380,673

Operating income (loss)¥1,769¥13,437¥5,904¥1,055¥4,702¥475¥(1,068)¥239¥(5,664)¥20,850¥(4,418)¥16,431

Notes:
1. Business segments are determined according to the responsibility of each operating officer of the segment controlling company.
2.Principal products and operational content of each business:(1) e-Commerce
Distributes PC software, hardware, and peripherals; operates enterprise businesses and business transaction platform- andconsumer-related e-commerce businesses(2) e-Finance
All inclusive Web-based financial operations, including Internet securities operations; management of domestic venture capital funds;
incubation of portfolio corporations(3) Media & MarketingBook and magazine publication in such areas as PCs, the Internet, entertainment, etc.; exhibition management; Web content
development(4) Broadmedia
Provision of applications and content for broadcasting and broadband communications and promoting the spread of such operations(5) Internet Culture
Internet-based advertising, broadband portals, auctions, etc.
(6) Technology Services
System solutions, business solutions, etc.
(7) Internet Infrastructure Provides fiber optic ultrahigh-speed Internet access services, operates a related data center and other businesses.
(8) Overseas Funds
U.S.- and Asia-focused global private equity operations in Internet-related companies(9) Others
Provide ADSL-based broadband infrastructure services, function as overseas holding companies, provide back-office support services
in Japan, etc.

SOFTBANK CORP.

26

2. Geographic Segment Information(1) FY2002 interim (for the period ended September 30, 2001)(Millions of yen; amounts less than one million yen are omitted.)
North
AmericaJapan
Net Sales(1) Customers(2) Inter-segment
Total
Operating expenses
Operating income (loss)¥157,845
83
157,928
160,237¥(2,308)

Europe¥13,897
50
13,947
14,879¥(931)

Korea

¥274

Others¥9,458

Total¥1,897

-

-

-

274
633
¥(359)

9,458
10,275¥(817)

1,897
3,488¥(1,591)

Elimination¥183,372
133
183,505
189,514¥(6,008)

(133)
(133)
2,562
¥(2,696)

Consolidated
Total¥183,372
183,372
192,077¥(8,704)(2) FY200１ interim (for the period ended September 30, 2000)(Millions of yen; amounts less than one million yen are omitted.)
North
AmericaJapan
Net Sales(1) Customers(2) Inter-segment
Total
Operating expenses
Operating income (loss)¥153,867¥12,10893
12,201
11,587¥614

153,867
149,342¥4,525

EuropeKorea¥92

Others¥13,412

Total

¥755

-

-

-

92
273
¥(181)

13,412
13,442
¥(30)

755
1,151
¥(395)

Elimination¥180,236
93
180,330
175,798¥4,532

(93)
(93)
(264)
¥171

Consolidated
Total¥180,236
180,236
175,533¥4,703(3) FY2001(for the period ended March 31, 2001)(Millions of yen; amounts less than one million yen are omitted.)
North
AmericaJapan
Net Sales(1) Customers(2) Inter-segment
Total
Operating expenses
Operating income (loss)¥341,978341,978
322,123¥19,855¥30,523555
31,07928,427¥2,651

EuropeKorea¥1,291Others¥21,271

Total¥2,040

-

-

-

1,291
1,765
¥(473)

21,271
22,127¥(856)

2,040
2,820¥(780)

Elimination¥397,105
555
397,660
377,264¥20,396

(555)
(555)
3,409
¥(3,964)

Consolidated
Total¥397,105
397,105
380,673¥16,431

Note : Geographic segmentation policy and major countries of each area are as follows (based on FY2002 interim):
1. Geographic segmentation policy
Based on geographical adjacency
2. Major countries included in each area
North America
U.S.A. and Canada
EuropeU.K., Germany and France
OthersSingapore, Hong Kong and China

SOFTBANK CORP.

27

3. Overseas sales(1) FY2002 interim (for the period ended September 30, 2001)(Millions of yen; amounts less than one million yen are omitted.)
North
AmericaI. Overseas sales¥14,147

Europe

Korea

¥300

Other

¥9,458

Total¥1,940II. Total consolidated sales¥25,846¥183,372

Overseas sales as aIII. percentage
of total consolidated sales

8%

0%

5%

1%

14 %

(2) FY2001 interim (for the period ended September 30, 2000)(Millions of yen; amounts less than one million yen are omitted.)
North
AmericaI. Overseas sales

Europe¥12,479

Korea

¥92

Other

¥13,412

Total

¥755

II. Total consolidated salesIII.

¥26,739¥180,236

Overseas sales as a percentage
of total consolidated sales

7%

0%

7%

1%

15 %

(3) FY2001(for the period ended March 31, 2001)(Millions of yen; amounts less than one million yen are omitted.)
North
AmericaI. Overseas sales

Europe¥31,399

Korea¥1,376Other¥21,286

Total¥2,581

III.

Overseas sales as a percentage
of total consolidated sales¥56,644¥397,105

II. Total consolidated sales

8%

0%

5%

1%

14 %

Note: Segmentation policy of overseas sales and major countries of each area are as follows (based on FY2002 interim):
1. Segmentation policy of overseas sales
Based on geographical adjacency
2. Major countries of each area
North America
U.S.A. and Canada
EuropeU.K., Germany and France
Other
Singapore, Hong Kong and China

SOFTBANK CORP.

28

Investments in Debt and Equity Securities
FY2002 interim (as of September 30, 2001)
1. The aggregate cost and market value (carrying value) of other securities(Millions of yen; amounts less than one million yen are omitted.)
FY2002 interim (as of September 30, 2001)
Cost(1) Equity Securities(2) Others
Total¥147,176
2¥147,179

Carrying value¥130,2182¥130,221

Unrealized
gain/(loss)¥(16,957)¥(16,957)

2. The carrying amounts of unlisted investment securities(Millions of yen; amounts less than one million yen are omitted.)
Carrying Amounts(1) Held-to-maturity debt securities
Debt Securities(2) Other and available for sale securities
Equity Securities
Foreign Debt Securities
Domestic Debt Securities
MMF
Mid-term Government Bond Fund
Total

¥62
41,384
11,67011,127
17,725
1,707¥83,677

FY2001 interim (as of September 30, 2000)
1. The aggregate cost and market value (carrying value) of other securities(Millions of yen; amounts less than one million yen are omitted.)
FY2001 interim (as of September 30, 2000)
Cost(1) Equity Securities(2) Debt Securities
Government & Municipal Bonds
Corporate Bonds
Total

Carrying Amount

Unrealized
gain/(loss)¥36,796¥53,317¥16,5210
6,761¥43,558

0
10,363¥63,6813,601¥20,122

2.The carrying amounts of unlisted investment securities(Millions of yen; amounts less than one million yen are omitted.)
Carrying Amounts(1) Held-to-maturity securities
Debt Securities(2) Other and available for sale securities
Equity Securities
Foreign Debt Securities
Domestic Debt Securities
MMF
Mid-term Government Bonds Fund
OthersTotal

SOFTBANK CORP.

¥34
63,996
1,694
7,775
12,2662,486
73¥88,326

29

Investments in Debt and Equity Securities (continued)
FY2001(as of March 31, 2001)
1. The aggregate cost and market value (carrying value) of other securities(Millions of yen; amounts less than one million yen are omitted.)
FY2001 (as of March 31, 2001)
Carrying Amount

Unrealized
gains/(losses)¥56,710¥101,276¥44,566

3,140¥59,850

5,828¥107,105

2,687¥47,254¥69,782¥53,798¥(15,983)

1,350
71,132¥130,982

1,311
55,109¥162,215(38)(16,022)¥31,232

Cost
Fair Value > Carrying Amount(1) Equity Securities(2) Debt Securities
Corporate bonds
Sub-total
Fair Value ≦ Carrying Amount(1) Equity Securities(2) Debt Securities
Corporate bonds
Sub-total
Total

2.The carrying amounts of the unlisted investment securities(Millions of yen; amounts less than one million yen are omitted.)
Carrying Amounts(1) Held-to-maturity securities
Debt Securities(2) Other and available for sale securities
Equity Securities
Foreign Debts Securities
Debt Securities
MMF
Mid-term Government Bonds Fund
OthersTotal

SOFTBANK CORP.

¥045,0639,008
1,776
25,8772,365
1,099¥85,19230

CONTRACT AND OTHER AMOUNTS, FAIR VALUE AND UNREALIZED GAIN
OR LOSS ON DERIVATIVE TRANSACTIONSCurrency Related(Millions of yen; amounts less than one million yen are omitted.)
FY2002 Interim (as of September 30, 2001)

Nature of transaction

Contract amounts
Over 1 year

Fair
value

FY2001 Interim (as of September 30, 2000)

Contract amounts

Unrealized
gain/(loss)

Over 1 year

Fair
value

FY2001 (as of March 31, 2001)

Contract amounts

Unrealized
gain/(loss)

Over 1 year

Fair
value

Unrealized
gain/(loss)

Swap Transactions
・Australia dollars Receiver,JPY Payer¥1,000¥1,000¥(159)¥(159)¥1,000¥1,000¥(190)¥(190)¥1,000¥1,000¥(176)

Off-market ・ Call option
in US dollars
transactions(Option premium)

-

-

-

-

-

-

-

-

26

-

-

-

-

-

-

-

-

-

0

-

Put option
in US dollars(Option premium)

-

-

-

-

-

-

-

-

26

-

-

-

-

-

-

-

-

-

0

-

-

-

-

・

¥(176)

-

-

0

(0)
-

-

0

(0)

Forward Exchange Contracts
・

U.S. dollars purchased,
Japanese yen sold

1,000

-

1,007

Total

7
¥(151)

-

-

-

-

-

¥(190)¥(176)

Interest Related(Millions of yen; amounts less than one million yen are omitted.)
FY2002 Interim (as of September 30, 2001)

Nature of transaction

Notional amounts
Over 1 year

Fair
value

FY2001 (as of March 31, 2001)

FY2001 Interim (as of September 30, 2000)

Unrealized
gain/(loss)

Notional amounts
Over 1 year

Fair
value

Unrealized
gain/(loss)

Notional amounts
Over 1 year

Fair
value

Unrealized
gain/(loss)

Swap Transactions
・

Fix Rate Receiver,
Floating Rate Payer

Off-market
Floating Rate Receiver,transactions ・
Fix Rate Payer
・

Fix Rate Receiver (receipt later),
Floating Rate Payer (pre payment)
Total¥5,771¥1,771¥303¥303¥6,014¥5,771¥384¥384¥6,014¥5,771

¥397

¥397

7,485

3,485

(419)

(419)

8,157

7,485

(516)

(516)

8,157

7,485

(563)

(563)

1,000

1,000

37

37

2,000

2,000

68

68

1,000

1,000

36

36

¥(78)

¥(63)

¥(128)

Notes: 1. Fair value is based on the information from the financial institutions.
2. In addition to the above, the consolidated subsidiaries engaged in the security
securities
businessbusinessoutsideoutsideJapan
Japan
recordrecorded
the fairthevalue
fair value
ot theofequity
the equity
options
optionsin theinamountthe amount
10,765
1,015
millionmillionyen,yen,and the notional amounts of these options, measured by the market value of the underlying shares are 10,765 million yen.

SOFTBANK CORP.

31