This English translation of the financial report was prepared for reference purposes only and is qualified in its entirety by the original
Japanese version. The financial information contained in this report is derived from our unaudited consolidated financial statements
appearing in item 4 of this report.

SOFTBANK CORP.
CONSOLIDATED FINANCIAL REPORTFor the fiscal year ended March 31, 2012
Tokyo, April 26, 2012

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

Net sales

Operating income

Ordinary income

Net income

Amount%Amount%Amount%Amount%Fiscal year ended
March 31, 2012

¥3,202,435

6.6¥675,283

7.3¥573,651

10.2¥313,752

65.4

Fiscal year ended
March 31, 2011

¥3,004,640

8.7¥629,163

35.1¥520,414

52.6¥189,712

96.2

Note: Comprehensive income
Fiscal year ended March 31, 2012:
Fiscal year ended March 31, 2011:¥ 356,988 million (62.3%)¥ 219,942 million (51.4%)

Net income
per share－basic(yen)

Net income
per share－diluted(yen)

Fiscal year ended
March 31, 2012¥285.78

Fiscal year ended
March 31, 2011¥175.28Return on Equity(%)

Ordinary income /Total assets (%)

Operating income /Net sales (%)¥278.75

40.3

12.0

21.1

¥168.57

34.8

11.4

20.9

Note: Equity in earnings (losses) of affiliated companies
Fiscal year ended March 31, 2012:¥ (2,947) million
Fiscal year ended March 31, 2011:¥ 2,874 million(2) Financial Condition(Millions of yen; amounts less than one million yen are omitted.)

Total assets

Total equity

Equity ratio (%)

Shareholders' equity
per share (yen)As of March 31, 2012

¥4,899,705¥1,435,640

19.1¥852.69

As of March 31, 2011

¥4,655,725¥879,618

13.3¥572.14

Note: Shareholders’ equity (consolidated)
As of March 31, 2012:
As of March 31, 2011:¥936,693 million¥619,252 million(3) Cash Flows(Millions of yen; amounts less than one million yen are omitted.)

Operating activities

Investing activities

Financing activities

Cash and cash
equivalents
at the end of the year

Fiscal year ended
March 31, 2012

¥740,227¥(375,655)¥(196,667)¥1,014,558

Fiscal year ended
March 31, 2011

¥825,837¥(264,447)¥(397,728)¥847,155

2. Dividends
Total
Amount ofdividends

Dividend per share
Fiscal years ended First quarter Second quarter Third quarter
end
end
end
March 31

FY 2011
FY 2012FY 2013(Forecasted)

Fiscal year
end

Total

Payout ratio(Consolidated)

Dividend
on equity(Consolidated)(Annual)

(yen)

(yen)

(yen)

(yen)

(yen)

(millions of yen)

%

%

-

0.00
0.00

-

5.00
40.00

5.00
40.00

5,411
43,940

2.9
14.0

1.0
5.6

-

-

-

-

-

-

Note: Dividend for the fiscal year ending March 31, 2013(Forecasted) is not determined at this point. The concrete amount of dividend will beannounced promptly upon resolution.

3.

Forecasts on the consolidated operation results for the fiscal year ending in March 2013 (April 1, 2012 – March 31, 2013)

For the fiscal year ending March 31, 2013, the SOFTBANK Group will continue to focus on network expansion and customer
acquisition in the Mobile Communications segment. Although this will increase the SOFTBANK Group’s expenses, the customer
base is expected to continue to expand steadily. As a result, the Group is forecasting a year-on-year increase in both net sales andoperating income, and expects operating income to exceed ¥700 billion.
Other Notes(1) Significant Changes in Scope of Consolidation (Changes in Scope of Consolidation of Specified Subsidiaries):
Newly consolidated: SFJ Capital Limited

Yes(2) Changes in accounting principles, procedures, disclosure methods, etc., used in the presentation of the consolidated financial
statements[1] Changes due to revisions in accounting standards: No[2] Changes other than those in [1]: No[3] Changes in accounting estimates : No
[4] Retrospective restatements: No(3) Number of shares issued (Common stock)[1] Number of shares issued (including treasury stock):
As of March 31, 2012:
As of March 31, 2011:

1,107,728,781 shares
1,082,530,408 shares[2] Number of treasury stock:
As of March 31, 2012:
As of March 31, 2011:

9,213,962 shares
180,503 shares[3] Weighted-average number of common stock:
As of March 31, 2012:
As of March 31, 2011:

1,097,880,178 shares
1,082,345,444 shares

SOFTBANK CORP. CONSOLIDATED FINANCIAL REPORTFor the fiscal year ended March 31, 2012

[For Reference]
FINANCIAL HIGHLIGHTS (Non-Consolidated)(1) Non-Consolidated Results of Operations(Millions of yen; amounts less than one million yen are omitted.)

Net sales

Operating income

Ordinary income

Net income (loss)

Amount%Amount%Amount%Amount%Fiscal year ended
March 31, 2012

¥43,700

24.3¥30,02628.9¥36,63448.6¥25,339-

Fiscal year ended
March 31, 2011¥35,161172.6¥23,296903.0¥24,653-¥(2,296)-

Net income (loss)
per share－basic(yen)

Net income (loss)
per share－diluted(yen)

Fiscal year ended
March 31, 2012

¥23.08¥ 22.89

Fiscal year ended
March 31, 2011¥(2.12)¥-(2) Non-Consolidated Financial Condition(Millions of yen; amounts less than one million yen are omitted.)

Total assets

Net Assets

Equity ratio (%)

Shareholders' equity
per share (yen)As of March 31, 2012

¥2,985,073¥493,002

16.5¥448.70

As of March 31, 2011

¥2,185,506¥419,752

19.2¥387.72

Note: Shareholders’ equity (non-consolidated)
As of March 31, 2012:
As of March 31, 2011:¥492,904 million¥419,652 million* Implementation status of audit proceduresThis consolidated financial report is not subject to audit procedures based on Financial Instruments and Exchange Act and the audit procedures for the
consolidated financial statements were being conducted when this report was disclosed.

* Note to forecasts on the consolidated operating results and other items
The forecast figures are estimated based on the information which SOFTBANK CORP. is able to obtain at the present point and assumptions which
are deemed to be reasonable. However, actual results may be different due to various factors. Please refer to page 13 “1. Results of Operations (1)Qualitative Information Regarding Consolidated Results of Operations 3.Forecasts for Fiscal Year Ending March 2013 and the Fiscal Year Ending
March 2014” for details of forecasts on the consolidated operating results. SOFTBANK CORP.'s Earnings Results Briefing will be held for media,
institutional investors, and financial institutions on April 26, 2012 followed by the Analysts Briefing for institutional investors and financial institutions
on April 27, 2012. The Earnings Results Briefing will be streamed live on the Company's Website in Japanese and English(http://www.softbank.co.jp/en/irinfo/). The material used in the Analysts Briefing will be uploaded the day before the briefing and the video on
demand will be made available as soon as possible on the Company’s Website afterwards.

SOFTBANK CORP. CONSOLIDATED FINANCIAL REPORTFor the fiscal year ended March 31, 2012

(Appendix)
Contents
1.

Results of Operations(1) Qualitative Information Regarding Consolidated Results of Operations
1. Consolidated Results of Operations
2. Results by Business Segment（Reference 1: Principal Operational Data）（Reference 2: Definition and Calculation Method of ARPU, etc., in the Mobile
Communications Business）（Reference 3: Capital Expenditure and Depreciation）
3. Forecasts for the Fiscal Year Ending March 2013 and the Fiscal Year Ending
March 2014
(2) Qualitative Information Regarding Consolidated Financial Position
1. Assets, Liabilities, and Equity
2. Cash Flows（Reference: Major Financing Activities）(3) Fundamental Policy for Distribution of Profit, and Dividend for the Fiscal Year

p. 2
p. 2
p. 2
p. 5
p. 9
p.11
p.12
p.13
p.14
p.14
p.17
p.19
p.20

2.

The SOFTBANK Group

p.21

3.

Management Policies(1) Basic Management Approach(2) Target Management Indices(3) Medium- to Long-term Strategies(4) Important Management Issues for the Company(5) Progress in Reduction of Net Interest-bearing Debt and Change of Policy

p.22
p.22
p.22
p.22
p.23
p.23

4.

Consolidated Financial Statements(1) Consolidated Balance Sheets(2) Consolidated Statements of Income and Consolidated Statements of Comprehensive
Income(3) Consolidated Statements of Changes in Equity(4) Consolidated Statements of Cash Flows(5) Significant Doubt About Going Concern Assumption(6) Basis of Presentation of Consolidated Financial Statements(7) Additional information(8) Notes(Consolidated Balance Sheets)(Consolidated Statements of Income)(Consolidated Statements of Changes in Equity)(Consolidated Statements of Cash Flows)(Leases)(Financial Instruments)(Investment in Debt and Equity Securities)(Derivative Transactions)(Income Taxes)(Segment Information)(Per Share Data)(Significant Subsequent Events)

p.24
p.24
p.26

5

1

p.28
p.30
p.32
p.32
p.35
p.36
p.36
p.38
p.40
p.42
p.44
p.46
p.52
p.54
p.57
p.59
p.61
p.62

SOFTBANK CORP. CONSOLIDATED FINANCIAL REPORTFor the fiscal year ended March 31, 2012

Qualitative Information/Financial Statements
1.

Results of Operations(1) Qualitative Information Regarding Consolidated Results of Operations
1.

Consolidated Results of Operations< Overview of results for the fiscal year from April 1, 2011 to March 31, 2012>
For the fiscal year ended March 31, 2012 (hereafter “the fiscal year”), the SOFTBANK Group (hereafter “theGroup”) achieved consolidated net sales of ¥3,202,435 million, a ¥197,795 million (6.6%) increase compared withthe previous fiscal year (April 1, 2010 to March 31, 2011, hereafter “year on year”), with a ¥46,120 million (7.3%)
increase in operating income to ¥675,283 million.

This consolidated revenue and profit growth was driven bystrong performance in the Mobile Communications segment.
Ordinary income grew ¥53,236 million (10.2%) to ¥573,651 million.

Net income rose ¥124,039 million(65.4%) to ¥313,752 million. This was largely attributable to a year-on-year rise of ¥103,513 million in special
income, in addition to the increase in operating income.
Note:
Definition of terms: as used in this consolidated financial report for the fiscal year from April 1, 2011 to March 31, 2012, references to “theCompany,” “the Group,” and “the SOFTBANK Group” are to SOFTBANK CORP. and its consolidated subsidiaries except as the context
otherwise requires or indicates.

The main factors affecting earnings for the fiscal year were as follows:(a) Net Sales
Net sales totaled ¥3,202,435 million, for a ¥197,795 million (6.6%) year-on-year increase. This was mainly due
to increased telecom service revenue, primarily from steady growth in the number of mobile phone subscribers.
Another factor was an increase in sales of mobile handsets due to strong growth in shipments of iPhone 4S,1
which was launched in October 2011.

(b) Cost of Sales
Cost of sales rose ¥112,133 million (8.2%) year on year to ¥1,485,750 million.

This was primarily due to anincrease in the cost of sales for mobile handsets in the Mobile Communications segment as the number of handsets
shipped2 increased in line with the launch of iPhone 4S, along with higher depreciation and amortization expenses,
mainly relating to the installation of additional base stations.

(c) Selling, General, and Administrative Expenses
Selling, general, and administrative expenses grew ¥39,541 million (3.9%) year on year to ¥1,041,401 million.
This was mainly because of an increase in the total amount of sales commissions paid 3 in the Mobile
Communications segment, resulting from a rise in the number of handsets sold4 following the launch of iPhone
4S.
1
2
3
4

iPhone and iPad are trademarks of Apple Inc.
The iPhone trademark is used under license from Aiphone K.K.
Handsets shipped: handsets shipped (sold) to agents.
Sales commissions paid to sales agents per new subscription and upgrade.
Handsets sold: total of new subscriptions and handset upgrades.

2

SOFTBANK CORP. CONSOLIDATED FINANCIAL REPORTFor the fiscal year ended March 31, 2012(d) Operating Income
As a result, operating income totaled ¥675,283 million, for a ¥46,120 million (7.3%) year-on-year increase.

The

operating margin rose 0.2 of a percentage point year on year to 21.1%.

(e) Non-operating Income / Expenses
Non-operating income totaled ¥11,308 million, a ¥6,012 million year-on-year decrease. Non-operating expenses
were ¥112,940 million, a ¥13,128 million year-on-year decrease. Interest expense decreased by ¥41,813 million
as SOFTBANK MOBILE Corp. paid off its SBM loan5 in October 2011.
expenses totaled ¥24,956 million.

Meanwhile, refinancing related

These mainly comprised costs relating to the Company’s newly procured

funds for refinancing of the SBM loan, and repayment of the SBM loan.

(f) Ordinary Income
Ordinary income therefore totaled ¥573,651 million, for a ¥53,236 million (10.2%) year-on-year increase.

(g) Special Income
Special income totaled ¥117,765 million.

The main components of this were gain on sale of investment

securities of ¥88,368 million and dilution gain from changes in equity interest of ¥20,185 million.
The gain on sale of investment securities was primarily attributable to a ¥76,430 million gain on sale of Yahoo!
Inc. shares. In connection with the Company’s financing of US$1,135 million from CITIBANK, N.A. throughone of its U.S. subsidiaries in February 2004, certain forward contracts (“collar transaction”) were entered into,
which allowed the obligation to be settled at maturity by delivering Yahoo! Inc. shares held by this subsidiary.
The forward contracts were to effectively hedge the variability of cash flows associated with the future market
price of the underlying security.
During the second quarter of the fiscal year ended March 2012, the obligation under the forward contracts was
settled at maturity by effectively delivering the shares of Yahoo! Inc. (book basis of US$142 million) to
CITIBANK, N.A.

The cash proceeds received by the Company’s aforementioned subsidiary from delivering theshares of Yahoo! Inc. to CITIBANK, N.A. were then remitted to repay the related obligation. Gain on sale ofinvestment securities of ¥76,430 million (US$993 million) was recorded as a result of settling the forward
contracts.
Dilution gain from changes in equity interest was recorded mainly in relation to the Company’s equity method
affiliate Renren Inc.’s listing on the New York Stock Exchange in May 2011.

5

The loan procured under a whole business securitization scheme as part of the loan for procurement of the acquisition finance for Vodafone K.K.
(currently SOFTBANK MOBILE Corp.).

3

SOFTBANK CORP. CONSOLIDATED FINANCIAL REPORTFor the fiscal year ended March 31, 2012(h) Special Loss
Special loss was ¥59,160 million.

The main components of the loss were a premium expense on advanced

repayment of long-term debt of ¥21,875 million, loss on liquidation of subsidiaries and affiliates of ¥19,071
million, and a valuation loss on investment securities of ¥13,971 million. The premium expense occurred inrelation to SOFTBANK MOBILE Corp.’s repayment of the abovementioned SBM loan in October 2011. The
loss on liquidation of subsidiaries and affiliates relates to the liquidation of the Company’s subsidiary Charlton
Acquisition LLP, which held the Betfair Group plc shares as a holding company in the U.K. The valuation loss
on investment securities was mainly associated with a drop in the stock price of Betfair Group plc.

(i) Income Taxes
Provisions for current income taxes were ¥196,509 million and provisions for deferred income taxes were ¥58,203
million.

Total income taxes increased ¥21,763 million year on year to ¥254,712 million.

(j) Minority Interests in Net Income
Minority interests in net income totaled ¥63,790 million, mainly related to net income recorded at Yahoo Japan
Corporation.

(k) Net Income
As a result of the above, net income totaled ¥313,752 million, for a ¥124,039 million (65.4%) year-on-yearincrease.

(l) Comprehensive Income
Comprehensive income was ¥356,988 million, an increase of ¥137,046 million (62.3%) year on year. Of this,comprehensive income attributable to owners of the parent was ¥296,543 million, up ¥136,765 million (85.6%),
and comprehensive income attributable to minority interests was ¥60,445 million, up ¥280 million (0.5%).

4

SOFTBANK CORP. CONSOLIDATED FINANCIAL REPORTFor the fiscal year ended March 31, 2012

2. Results by Business Segment
Note:
Principal operational data are shown on pages 9-10 “(Reference 1: Principal Operational Data).”(a) Mobile Communications(Millions of yen)

Fiscal Year Ended
March 31, 2011

Fiscal Year Ended
March 31, 2012

ChangeChange %Net sales

1,944,551

2,144,899

200,348

10.3%

Operating income

402,411429,236

26,824

6.7%

6・ 3,540,300 net subscriber additions

for the fiscal year
for the fiscal year was ¥4,150, a ¥60 year-on-year decrease. Data ARPU amounted to ¥2,510, a¥200 year-on-year increase.
7

・ ARPU< Overview of Operations >The segment’s net sales increased by ¥200,348 million (10.3%) year on year to ¥2,144,899 million.

The mainfactor behind the increase was increased telecom service revenue resulting from steady growth in the number ofmobile phone subscribers. Another factor was an increase in sales of mobile handsets following strong growth inshipments of iPhone 4S, which was launched during the fiscal year.
The segment’s operating expenses grew ¥173,523 million (11.3%) year on year to ¥1,715,662 million. The
main contribution to this increase was an increase in cost of sales for mobile handsets and sales commissions inline with a rise in the number of mobile handsets shipped and sold. The segment also saw higher depreciation
and amortization, mainly relating to the installation of additional base stations.
Operating income increased by ¥26,824 million (6.7%) year on year to ¥429,236 million.

<Number of Mobile Phone Subscribers>
Net subscriber additions (new subscribers minus cancellations) for the fiscal year totaled 3,540,300.
primarily the result of increased sales of smartphones such as iPhone and Android

TM 8

This washandsets, as well as higher

sales of iPad1, mobile data communications devices, and Mimamori Phone (handset with security buzzer).

As a

9

result, the cumulative number of subscribers at the end of the fiscal year stood at 28,949,000, raising
SOFTBANK MOBILE Corp.’s cumulative subscriber share by 1.5 percentage points year on year, to 23.3%.10

6
7
8
9
10

The number of net subscriber additions includes prepaid mobile phones and communication module service subscribers.
Net communication module service subscriber additions for the fiscal year totaled 741,400.
For definition and calculation method of ARPU, refer to page 11 “(Reference 2: Definition and Calculation Method of ARPU, etc., in the Mobile
Communications Business).”
Android is a trademark or a registered trademark of Google Inc.
The cumulative number of subscribers includes prepaid mobile phones and communication module service subscribers.
of communication module service subscribers at the end of the fiscal year was 2,050,000.

The cumulative number

Calculated by the Company based on Telecommunications Carriers Association statistical data.
Calculated from the numbers of subscribers of NTT DOCOMO, INC., KDDI CORPORATION, and SOFTBANK MOBILE Corp.

5

SOFTBANK CORP. CONSOLIDATED FINANCIAL REPORTFor the fiscal year ended March 31, 2012

< Number of Mobile Handsets Sold/ Shipped >The number of mobile handsets sold for the fiscal year increased by 2,059,000 year on year to 12,301,000. Of
these, new subscriptions increased by 879,000 year on year to 7,163,000, while handset upgrades increased by
1,180,000 to 5,138,000.

Meanwhile handsets shipped for the fiscal year increased by 1,666,000 year on year to

11,682,000.
The increases in the number of handsets sold and the number of handsets shipped were mainly the result of
expanded sales and shipments of smartphones, Mimamori Phone, iPad, and mobile data communications devices.

<ARPU>
ARPU for the fiscal year decreased ¥60 year on year to ¥4,150. Out of this, voice ARPU declined ¥250 year on
year to ¥1,650 and data ARPU rose ¥200 year on year to ¥2,510.
The decline in voice ARPU mainly reflects a dilution due to an increase in devices that do not have voicecommunication functionality (such as iPad, mobile data communications devices and PhotoVision (a digital photoframe with telecommunications functionality)) and a decrease in revenues from incoming calls,11 which was theresult of a reduction in access charges between operators. On the other hand, the increase in data ARPU was
mainly the result of the continuing increase in the number of data-intensive smartphone subscribers.

<Churn Rate and Upgrade Rate>
The churn rate12 for the fiscal year was 1.12%, which was 0.14 of a percentage point higher year on year. Thiswas primarily because of an increase in contract terminations for PhotoVision and prepaid mobile phones.
The upgrade rate12 for the fiscal year was 1.59%, which was 0.19 of a percentage point higher year on year.
This was mainly the result of an increase in upgrades to iPhone 4S.

< Average Acquisition and Upgrade Cost per Subscriber>
The average acquisition cost per subscriber13 for the fiscal year declined ¥6,600 year on year to ¥30,300. Thiswas mainly due to an increased number of handsets sold that have a lower acquisition cost per subscriber among
overall mobile handset sales, along with a revision of the pricing strategy for some mobile handsets.
The average upgrade cost per subscriber14 for the fiscal year increased ¥400 to ¥27,100 year on year.

11
12
13
14

Access charges received from other operators for voice calls from their customers to SoftBank mobile phones as a charge for the services
provided in the SOFTBANK MOBILE Corp. service area.
For definition and calculation of the churn and upgrade rates, see page 11 “(Reference 2: Definition and Calculation Method of ARPU, etc., in the
Mobile Communications Business).”
Average commission paid to sales agents per new subscription.
New subscriptions include prepaid mobile phones and communication modules.
Average commission paid to sales agents per handset upgrade.
Upgrades include communication modules.

6

SOFTBANK CORP. CONSOLIDATED FINANCIAL REPORTFor the fiscal year ended March 31, 2012(b) Broadband Infrastructure(Millions of yen)

Fiscal Year Ended
March 31, 2011

Fiscal Year Ended
March 31, 2012

ChangeChange %Net sales

190,055

171,904(18,150)(9.6%)

Operating income

43,15434,327(8,826)(20.5%)The segment’s net sales decreased by ¥18,150 million (9.6%) year on year to ¥171,904 million.

This was mainly<Overview of Operations>15

because of an increasing portion of Yahoo! BB hikari with FLET'S,

which has relatively lower ARPU16, while

the total number of broadband lines (total of the cumulative number of installed lines for Yahoo! BB ADSL and thecumulative number of contracts17 for Yahoo! BB hikari with FLET’S) continued to increase.
Operating income decreased by ¥8,826 million (20.5%) year on year to ¥34,327 million.

This was mainly due

to a decrease in net sales and an increase in sales commissions due to an increase in new subscriber acquisitions ofYahoo! BB hikari with FLET'S.
The number of installed lines of Yahoo! BB ADSL at the end of the fiscal year totaled 2,600,000, for a net
decrease of 549,000 from the previous fiscal year-end. Net subscriber additions for Yahoo! BB hikari with
FLET’S for the fiscal year totaled 676,000, bringing the cumulative number of subscribers at the end of the fiscal
year to 1,608,000. As a result, the number of broadband lines stood at 4,209,000.

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

Fiscal Year Ended
March 31, 2011

Fiscal Year Ended
March 31, 2012

ChangeChange %Net sales

356,561

367,645

11,084

3.1%

Operating income

38,006

57,95019,943

52.5%<Overview of Operations>
The segment’s net sales increased by ¥11,084 million (3.1%) year on year to ¥367,645 million. Inter-segment
sales increased due to network provision to the Group’s telecommunication companies such as SOFTBANKMOBILE Corp., and contributed to the segment's overall revenue growth. On the other hand, net sales tothird-parties decreased, primarily as a result of the continued decrease in revenue from relay connection voiceservices such as MYLINE, while revenues from solutions services for corporate customers such as network
monitoring, and data center services increased.
Operating income increased by ¥19,943 million (52.5%) to ¥57,950 million.
15

16
17

This was due to the increase in

A broadband connection service that combines the Internet connection service Yahoo! BB and the FLET’S HIKARI fiber-optic connection
provided by NIPPON TELEGRAPH AND TELEPHONE EAST CORPORATION (“NTT East”) and NIPPON TELEGRAPH AND
TELEPHONE WEST CORPORATION (“NTT West”). FLET’S and FLET’S HIKARI are registered trademarks of NTT East and NTT West.
Average Revenue Per User: average revenue per user (rounded to the nearest ¥10)
Number of users for which connection construction for FLET’S HIKARI line at central office of NTT East or NTT West is complete.

7

SOFTBANK CORP. CONSOLIDATED FINANCIAL REPORTFor the fiscal year ended March 31, 2012

net sales, combined with a decrease in operating expenses at SOFTBANK TELECOM Corp.

This decrease wasmainly the result of lower telecommunications equipment fees, a reduction in access charges between operators,
an increase in OTOKU Line service equipment for which the lease expenses have been paid, and a decrease inmarketing sales commissions on a decline in new OTOKU Line acquisitions.

(d) Internet Culture(Millions of yen)

Fiscal Year Ended
March 31, 2011

Fiscal Year Ended
March 31, 2012

ChangeChange %Net sales

283,615

293,635

10,019

3.5%

Operating income

150,305

156,821

6,516

4.3%

The segment’s net sales increased by ¥10,019 million (3.5%) year on year to ¥293,635 million.

This was mainly<Overview of Operations>due to revenue growth at Yahoo Japan Corporation in listing and display advertising, game-related services,
information listing services, and Yahoo! Shopping. While the Great East Japan Earthquake had a negative impact
on some business areas at the beginning of the fiscal year, this improved from the second quarter. In Yahoo!
Shopping, transaction volume via smartphones expanded substantially.
Operating income increased by ¥6,516 million (4.3%) year on year to ¥156,821 million. This was primarily
the result of a decrease in communications expenses due to connection efficiency improvements in the operating
system for data centers, although sales promotion expenses increased.

8

SOFTBANK CORP. CONSOLIDATED FINANCIAL REPORTFor the fiscal year ended March 31, 2012

(Reference 1: Principal Operational Data）(a) Mobile Communications
Fiscal Year Ended March 31, 2011
Q1

Q2

Q3

Q4

Fiscal Year Ended March 31, 2012
Full
Year

Q1

Q2

Q3

Full
Year

Q4

( Thousands)

Net additions18

696.6

901.0

925.7

1,008.8

3,532.1

730.0

759.7

936.9

1,113.7

3,540.3(Postpaid)

645.3

833.6

865.4

975.3

3,319.6

697.5

744.8

943.5

1,131.0

3,516.8(Prepaid)
Market share19
among 4 operators (%)
Market share19
among 3 operators (%)

51.3

67.4

60.3

33.5

212.5

32.5

14.9

(6.6)

(17.3)

23.5

45.4

53.5

55.8

40.8

48.0

42.7

40.4

-

-

-

51.7

60.8

62.7

44.2

53.6

49.1

46.2

42.4

45.8

45.6

(Thousands)

Cumulative subscribers18
Market share19
among 4 operators (%)
Market share19
among 3 operators (%)

22,573.2 23,474.2 24,399.9

25,408.7 26,138.7 26,898.4 27,835.3

28,949.0

19.9

20.3

20.8

21.3

21.6

21.8

-

-

20.3

20.8

21.4

21.8

22.2

22.5

22.9

23.3

2,162
1,375
787

2,712
1,562
1,149

2,605
1,577
1,028

2,763
1,770
994

10,242
6,284
3,958

2,550
1,564
987

2,665
1,624
1,040

3,787
1,848
1,938

3,300
2,127
1,173

12,301
7,163
5,138

2,051

2,687

2,736

2,542

10,016

2,493

2,395

3,770

3,025

11,682

4,290
2,030
2,250

4,300
2,020
2,290

4,310
1,980
2,330

3,940
1,570
2,370

4,210
1,890
2,310

4,210
1,780
2,440

4,310
1,780
2,520

4,230
1,700
2,530

3,890
1,350
2,530

4,150
1,650
2,510

37,20037,50037,80035,40036,90036,20030,80025,70029,40030,30025,90025,30028,70027,00026,70029,00028,60025,80026,30027,100

Churn rate26

1.02

0.96

0.91

1.02

0.98

1.08

1.09

1.11

1.20

1.12

(3G postpaid)

0.99

0.92

0.86

0.98

0.94

1.03

1.02

1.04

1.10

1.05

1.18

1.67

1.43

1.33

1.40

1.28

1.31

2.36

1.38

1.59

(Thousands)

Number ofhandsets sold20(New subscriptions)(Handset upgrades)(Thousands)

Number ofhandsets shipped21(Yen per month)

ARPU22(Voice) 23(Data)(Yen)

Average acquisition cost
per subscriber24(Yen)

Average upgrade cost
per subscriber25(% per month)(% per month)

Upgrade rate

18
19

20
21
22
23
24
25
26

Includes the number of prepaid mobile phones and communication module service subscribers.
Calculated by the Company based on Telecommunications Carriers Association statistical data.
4 operators: NTT DOCOMO, INC., KDDI CORPORATION, eAccess Ltd. and SOFTBANK MOBILE Corp.
3 operators: NTT DOCOMO, INC., KDDI CORPORATION, and SOFTBANK MOBILE Corp.
From December 2011, net additions and cumulative subscribers of eAccess Ltd. are no longer disclosed to the Telecommunications Carriers
Association, and therefore, from the third quarter the market share among 4 operators has not been calculated.
Handsets sold: total of new subscriptions and handset upgrades
Handsets shipped: handsets shipped (sold) to agents
For definition and calculation method of ARPU, refer to page 11 “(Reference 2: Definition and Calculation Method of ARPU, etc., in the Mobile
Communications Business).”
Calculated including basic monthly charge.
Average commission paid to sales agents per new subscription. New subscriptions include prepaid mobile phones and communication modules.
Average commission paid to sales agents per handset upgrade. Upgrades include communication modules.
For definition and calculation of the churn and upgrade rates, see page 11 “(Reference 2: Definition and Calculation Method of ARPU, etc., in the
Mobile Communications Business).”9

SOFTBANK CORP. CONSOLIDATED FINANCIAL REPORTFor the fiscal year ended March 31, 2012

Broadband Infrastructure
Yahoo! BB ADSL
Fiscal Year Ended March 31, 2011
Q1

Q2

Q3

Q4

3,609

3,457

3,291

3,960

3,950

3,890

3,830

2.46

2.39

2.66

2.65

Fiscal Year Ended

March 31, 2012
Q4

Full
Year

Q1

Q2

Q3

3,150

3,009

2,873

2,737

3,710

3,650

3,580

3,510

2.56

2.43

2.35

2.44

Full
Year

(Thousands)

Cumulative
installed lines

2,600(Yen per month)

ARPU27 28(% per month)

Churn rate29

2.54

2.45

Yahoo! BB hikari with FLET'S
Fiscal Year Ended March 31, 2011
Q1

Q2

Q3

Full
Year

Q4

Fiscal Year Ended

March 31, 2012

Q1

Q2

Q3

Q4

1,109

1,272

1,437

1,620

1,660

1,670

Full
Year

(Thousands)

Cumulative
contracts30

405

575

783

1,310

1,450

1,500

932

1,608

(Yen per month)

ARPU27

1,620

1,680

Broadband Lines
Fiscal Year Ended March 31, 2011
Q1

Q2

Q3

4,014

4,032

4,074

Q4

Fiscal Year Ended March 31, 2012
Full
Year

Q1

Q2

Q3

4,082

4,118

4,145

4,175

Q4

Full
Year

(Thousands)

Total users31

4,209(b) Fixed-line TelecommunicationsOTOKU Line
Fiscal Year Ended March 31, 2011
Q1

Q2

Q3

1,668

1,667

1,662

6,600

6,570

6,610

Q4

Fiscal Year Ended March 31, 2012
Full
Year

Q1

Q2

Q3

1,671

1,669

1,679

1,678

6,650

6,570

6,550

Q4

Full
Year

(Thousands)

Cumulative
lines

1,685

(Yen per month)
27

ARPU

27
28

29

30
31

6,930

6,790

Average Revenue Per User: average revenue per contract (rounded to the nearest ¥10)
Starting in the first quarter of the fiscal year ending March 2012, the index was changed to “ARPU” with the number of cumulative installed lines
as the denominator. The ARPU data for each quarter of the fiscal year ended March 2011 has therefore been restated to conform with this new
definition.
Starting in the first quarter of the fiscal year ending March 2012 the churn rate is calculated with number of cumulative installed lines as thedenominator. The churn data for each quarter of the fiscal year ended March 2011 has therefore been restated to conform with this new
definition.
Number of users for which connection construction for FLET’S HIKARI line at central office of NTT East or NTT West is complete.
Total of the number of installed lines of Yahoo! BB ADSL and cumulative contracts of Yahoo! BB hikari with FLET'S.

10

SOFTBANK CORP. CONSOLIDATED FINANCIAL REPORTFor the fiscal year ended March 31, 2012

(Reference 2: Definition and Calculation Method of ARPU, etc., in the Mobile Communications Business)
1.

Definition and calculation method of ARPU
ARPU（Average Revenue Per User per month）(rounded to the nearest ¥10)
ARPU = (voice-related revenue + data-related revenue) / number of active subscribers= voice ARPU + data ARPU
Voice ARPU = voice-related revenue (such as voice call charges, basic monthly charges, revenues from incoming calls)/ number of active subscribers
Data ARPU = data-related revenue (such as packet communication charges) / number of active subscribers
Number of active subscribers: total of monthly numbers of active subscribers for the relevant period ((subscribers at the
beginning of the month + subscribers at the end of the month)/2).
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 voice communication functionalities.
Revenues from incoming calls: access charges received from other operators for voice calls from their customers on their
network to SoftBank mobile phones as a charge for the services provided in the SOFTBANK MOBILE Corp. service
area.

2.

Definition and calculation method of churn rate
Churn rate in Mobile Communications＝churn / number of active subscribers（rounded off to the nearest 0.01%）
Churn＝total number of subscribers that churned during the relevant period
Number of active subscribers: total of monthly numbers of active subscribers for the relevant period ((subscribers at the
beginning of the month + subscribers at the end of the month)/2).

Number of active subscribers is based on

SOFTBANK MOBILE Corp.’s cumulative subscribers including prepaid mobile phones, communication modules anddevices that do not have voice communication functionalities.

3.

Definition and calculation method of upgrade rate
Upgrade rate in Mobile Communications＝number of upgrades / number of active subscribers (rounded off to the nearest
0.01%)
Number of upgrades＝total number of upgrades during the relevant period
Number of active subscribers: total of monthly numbers of active subscribers for the relevant period ((subscribers at the
beginning of the month + subscribers at the end of the month)/2).

Number of active subscribers is based on

SOFTBANK MOBILE Corp.’s cumulative subscribers including prepaid mobile phones, communication modules anddevices that do not have voice communication functionalities.

11

SOFTBANK CORP. CONSOLIDATED FINANCIAL REPORTFor the fiscal year ended March 31, 2012

(Reference 3: Capital Expenditure and Depreciation)(a) Capital Expenditure (acceptance basis)（Millions of yen）

Fiscal Year Ended March 31, 2011

Fiscal Year Ended March 31, 2012

Q1

Q2

Q3

Q4

Full
Year

Q1

Q2

Q3

MobileCommunications

25,98765,387116,324

143,826

351,525

84,076

98,39993,675 146,613 422,766

Broadband
Infrastructure

3,319

3,294

5,076

5,160

16,850

5,739

3,861

4,638

12,523

26,762

Fixed-line
Telecommunications

5,112

6,362

9,095

15,66536,236

6,320

8,281

10,654

14,621

39,877

Internet Culture

1,906

1,908

2,783

4,114

10,713

3,349

4,609

3,743

4,218

15,921Others

1,216

1,559

1,148

1,340

5,265

1,710

5,338

2,041

1,958

11,047

Consolidated total

37,54278,513

134,428

170,107

Q4

Full
Year

420,591 101,196 120,490 114,753 179,935 516,375(b) Depreciation and Amortization32 (excluding amortization of goodwill)（Millions of yen）

Fiscal Year Ended March 31, 2011
Q1

Q2

Q3

Q4

Full
Year

Q1

Q2

Q3

Q4

37,74539,671

41,18348,029166,630

46,202

48,69149,26659,295 203,455

4,211

4,213

4,020

3,863

16,308

3,540

3,452

3,507

3,894

14,395

9,458

9,827

9,631

11,48540,403

9,188

9,684

9,957

10,96939,800Internet Culture

2,169

2,307

2,412

2,533

9,422

2,291

2,395

2,703

2,896

10,288Others

1,441

1,485

1,631

1,554

6,113

1,521

1,592

2,350

2,421

7,886

Consolidated total

55,02557,50558,88067,466

238,878

62,74465,81667,78579,478 275,825

MobileCommunications
Broadband
Infrastructure
Fixed-line
Telecommunications

32

Fiscal Year Ended March 31, 2012

From the fiscal year depreciation and amortization includes loss on disposal of fixed assets included in operating expenses.
Depreciation and amortization for the previous quarters has been reclassified and restated accordingly.

12

Full
Year

SOFTBANK CORP. CONSOLIDATED FINANCIAL REPORTFor the fiscal year ended March 31, 20123.

Forecasts for Fiscal Year Ending March 2013 and the Fiscal Year Ending March 2014
For the fiscal year ending March 31, 2013, the Group will continue to focus on network expansion and customer
acquisition in the Mobile Communications segment. Although this will increase the Group’s expenses, thecustomer base is expected to continue to expand steadily.

As a result, the Group is forecasting a year-on-yearincrease in both net sales and operating income, and expects operating income to exceed ¥700 billion.
In the fiscal year ending March 31, 2014, the Group expects to achieve these initiatives and to see its profits
enter a new growth phase.

13

SOFTBANK CORP. CONSOLIDATED FINANCIAL REPORTFor the fiscal year ended March 31, 2012

(2) Qualitative Information Regarding Consolidated Financial Position
1.

Assets, Liabilities, and Equity

Assets, liabilities, and equity at the end of the fiscal year were as follows:(Millions of yen)

As of March 31, 2011

As of March 31, 2012

ChangeChange %Total assets

4,655,725

4,899,705

243,979

5.2%

Total liabilities

3,776,107

3,464,065(312,042)(8.3%)

Total equity

879,618

1,435,640

556,02163.2%(a) Current Assets
Current assets at the end of the fiscal year totaled ¥1,910,452 million, for a ¥47,835 million (2.6%) increase fromthe previous fiscal year-end.

The primary components of the change were as follows:

・ Cash and deposits increased by ¥154,593 million from the previous fiscal year-end.

This was mainly becauseof steady performances in each of the business segments, in addition to the Company’s subsidiary SFJ Capital
Limited procuring funds by issuing preferred (restricted voting) securities in preparation of the payment ofaccounts payable in April 2012 to the Vodafone Group33 as part of a transaction made in December 2010. On
the other hand, outlays related to capital expenditure increased and the Company repaid borrowings such as the
SBM loan.
・ Marketable securities decreased by ¥73,524 million from the previous fiscal year-end.

This was mainly due tothe transfer of shares of Yahoo! Inc. held by one of the Company’s U.S. subsidiaries to CITIBANK, N.A., as
described on page 3 (g) Special Income.

(b) Fixed Assets
Fixed assets totaled ¥2,983,553 million at the end of the fiscal year, for a ¥191,826 million (6.9%) increase fromthe previous fiscal year-end.

The primary components of the change were as follows:・ Total property and equipment increased ¥182,945 million from the previous fiscal year-end, primarily from newacquisitions of telecommunications equipment such as base stations for its network enhancement.
・ Total intangible assets increased ¥6,169 million from the previous fiscal year-end.

This was mainly because

software increased by ¥61,278 million as a result of new acquisitions of telecommunications equipment. On
the other hand, goodwill decreased by ¥58,995 million resulting from regular amortization of the goodwill
recorded when the Company acquired SOFTBANK MOBILE Corp. and SOFTBANK TELECOM Corp.

(c) Current Liabilities
Current liabilities at the end of the fiscal year totaled ¥1,923,725 million, for a ¥279,317 million (17.0%) increase
from the previous fiscal year-end.

The primary components of the change were as follows:・ Accounts payable – other and accrued expenses increased by ¥273,631 million from the previous fiscal year-end.

This was mainly the result of transferring ¥200,000 million from long-term liabilities – other to current

33

Vodafone International Holdings B.V. and Vodafone Overseas Finance Limited

14

SOFTBANK CORP. CONSOLIDATED FINANCIAL REPORTFor the fiscal year ended March 31, 2012liabilities as an amount scheduled to be paid to the Vodafone Group as part of a transaction made with theVodafone Group in December 2010.

This payment was completed on April 2, 2012.

Moreover, accounts

payable increased following new acquisitions of telecommunications equipment.
・ Commercial paper decreased by ¥25,000 million from the previous fiscal year-end, as it was fully redeemed

during the fiscal year.
・ Lease obligations increased ¥21,376 million from the previous fiscal year-end.

This was mainly due to anincrease in new acquisitions of telecommunications equipment through lease transactions, which led to anincrease in the amount of payments to be made within one year.
・ The current portion of corporate bonds increased by ¥16,488 million from the previous fiscal year-end.

This

was mainly due to transfers from long-term to current liabilities for corporate bonds in the amounts of ¥30,000
million for the 28th Unsecured Straight Corporate Bond, ¥65,000 million for the 29th Unsecured Straight
Corporate Bond, and ¥49,988 million for the Convertible Bond Due 2013. On the other hand, the 27th
Unsecured Straight Corporate Bond of ¥60,000 million, the 25th Unsecured Straight Corporate Bond of ¥53,500
million, and SOFTBANK TELECOM Corp.’s 2nd series Unsecured Straight Corporate Bond of ¥15,000 million
were redeemed.

(d) Long-term Liabilities
Long-term liabilities totaled ¥1,540,339 million at the end of the fiscal year, for a ¥591,359 million (27.7%)
decrease from the previous fiscal year-end.

The primary components of the change were as follows:・ Long-term borrowings decreased by ¥470,889 million from the previous fiscal year-end.

to loan repayments of ¥772,577 million made by SOFTBANK MOBILE Corp.

This was mainly due

On the other hand, theCompany’s long-term borrowings were increased by ¥301,100 million, mainly due to refinancing of the SBM
loan.
・ Long-term liabilities – other decreased by ¥205,363 million from the previous fiscal year-end.

This wasmainly due to the transfer of ¥200,000 million to accounts payable – other and accrued expenses for theabove-mentioned payment scheduled as part of a transaction with the Vodafone Group, since the payment datecame to be within one year.
・ Lease obligations increased by ¥147,929 million from the previous fiscal year-end.

This was mainly due to anincrease in new acquisitions of telecommunications equipment via lease transactions.
・ Corporate bonds decreased ¥47,490 million from the previous fiscal year-end.

Transfers were made forcorporate bonds from long-term to current liabilities in the amounts of ¥30,000 million for the 28th Unsecured
Straight Corporate Bond, ¥65,000 million for the 29th Unsecured Straight Corporate Bond, and ¥49,988 million
for the Convertible Bond due 2013 as the redemption dates came to be within one year.

Moreover, ¥32,400

million of the Subordinated Notes Due 2016 issued by the Company’s subsidiary, Phoenix JT Limited, wasredeemed early, and the Company’s Convertible Bond Due 2014 (balance at the previous fiscal year-end:¥49,992 million) was converted into common stock of the Company.
th

On the other hand, the Company issuedththe 36 Unsecured Straight Corporate Bond of ¥100,000 million, the 37 Unsecured Straight Corporate Bond of¥30,000 million, and the 38th Unsecured Straight Corporate Bond of ¥50,000 million for a total of ¥180,000
million.

15

SOFTBANK CORP. CONSOLIDATED FINANCIAL REPORTFor the fiscal year ended March 31, 2012(e) Equity
Equity totaled ¥1,435,640 million at the end of the fiscal year, for a ¥556,021 million (63.2%) increase from theprevious fiscal year-end.

The equity ratio rose 5.8 percentage points from the previous fiscal year-end to 19.1%.

The primary components of the change were as follows:(Shareholders’ equity)
Shareholders’ equity increased ¥334,625 million from the previous fiscal year-end to ¥957,947 million.
・ At the end of the fiscal year, common stock totaled ¥213,797 million and additional paid-in capital was¥236,562 million. This result includes the conversion of the Convertible Bond Due 2014 into common stockof the Company during the fiscal year, which increased common stock by ¥25,022 million and additional paid-in
capital by ¥24,052 million.
・ Retained earnings totaled ¥530,534 million at the end of the fiscal year, for a ¥308,257 million increase from theprevious fiscal year-end. This was primarily because net income of ¥313,752 million was recorded.
・ Treasury stock totaled ¥22,947 million, for a ¥22,706 million increase from the previous fiscal year-end.

This

was mainly due to acquisitions of treasury stock in September and October 2011 in preparation for the exerciseof stock acquisition rights and allowing execution of a flexible capital strategy in response to changes in thebusiness environment.
(Valuation and translation adjustments)
Valuation and translation adjustments of ¥21,253 million were recorded as debit at the end of the fiscal year, a¥17,184 million increase from the previous fiscal year-end.
・ Net unrealized gain on available-for-sale securities was ¥10,566 million at the end of the fiscal year, a ¥24,354

million decrease from the previous fiscal year-end, and a deferred loss on derivatives under hedge accounting of¥993 million was recorded, a ¥12,217 million decrease from the previous fiscal year-end.

These declines aremainly a result of settlement of forward contracts (“collar transaction”) by one of the Company’s U.S.
subsidiaries upon maturity of a loan from CITIBANK, N.A. during the second quarter of the fiscal year ended
March 2012, as described on page 3 (g) Special Income.

The subsidiary entered into the contract when it

obtained the loan.
・ Foreign currency translation adjustments improved by ¥19,387 million from the previous fiscal year-end to a

debit of ¥30,826 million at the end of the fiscal year. This improvement was mainly due to the recognition offoreign currency translation adjustments as loss related to the liquidation of the Company’s subsidiary Charlton
Acquisition LLP.
(Minority interests)
・ Minority interests totaled ¥498,047 million at the end of the fiscal year, for a ¥238,385 million increase from theprevious fiscal year-end.

This was mainly due to the issuance of preferred (restricted voting) securities

amounting ¥200,000 million by the Company’s subsidiary SFJ Capital Limited.

16

SOFTBANK CORP. CONSOLIDATED FINANCIAL REPORTFor the fiscal year ended March 31, 2012

2.

Cash Flows

Cash flows during the fiscal year were as follows:
Cash and cash equivalents at the end of the fiscal year totaled ¥1,014,558 million, for a ¥167,403 million increase
from the previous fiscal year-end.
(Millions of yen)

Fiscal Year Ended
March 31, 2011

Fiscal Year Ended
March 31, 2012

ChangeCash flows from operating activities

825,837

740,227(85,609)

Cash flows from investing activities(264,447)(375,655)(111,207)(Reference) Free cash flow

561,389364,571(196,817)

Cash flows from financing activities(397,728)(196,667)

201,060(a) Cash Flows from Operating Activities
Net cash provided by operating activities totaled ¥740,227 million (compared with ¥825,837 million provided in
the previous fiscal year). The primary components of the change were as follows:・ Income before income taxes and minority interests totaled ¥632,256 million.
・ The main items added to income before income taxes and minority interests were ¥275,825 million in

depreciation and amortization and ¥62,606 million in amortization of goodwill.
・ The main items subtracted from income before income taxes and minority interests were gain on sale ofmarketable and investment securities, net of ¥88,278 million and dilution gain from changes in equity interest,
net of ¥19,685 million.
・ Income taxes paid were ¥195,640 million.

(b) Cash Flows from Investing Activities
Net cash used in investing activities was ¥375,655 million (compared with ¥264,447 million used in the previous
fiscal year). The primary components of the change were as follows:
・ Capital expenditures, mainly at telecommunications-related businesses, resulted in outlays of ¥455,023 million

for purchase of property and equipment, and intangibles.
・ Proceeds from sale of marketable and investment securities were ¥87,985 million.

For details on proceedsfrom sale of marketable securities and investment securities, refer to page 42, “3. Consolidated Financial
Statements - (6) Notes (Consolidated Statements of Cash Flows) – 2. Proceeds from sale of marketable andinvestment securities and Repayment of long-term debt”.
・ Outlays for purchase of marketable and investment securities were ¥33,323 million.
・ Proceeds from advanced redemption of debt security generated ¥30,375 million.

redemption of WBS Class B2 Funding Notes

34

34

held by the Company.

Issued by J-WBS Funding K.K. in November 2006 to provide part of the funding for the SBM loan.
The Company acquired these bonds at face value of ¥27,000 million during the fiscal year ended March 2010.

17

This was due to early

SOFTBANK CORP. CONSOLIDATED FINANCIAL REPORTFor the fiscal year ended March 31, 2012

As a result, free cash flow (the combined net cash flows from operating activities and investing activities) for the
fiscal year was a positive ¥364,571 million (compared with a positive ¥561,389 million in the previous fiscal year),for a year-on-year decrease of ¥196,817 million.

(c) Cash Flows from Financing Activities
Net cash used in financing activities was ¥196,667 million (compared with ¥397,728 million used in the previous
fiscal year). The primary components of the change were as follows:(Items increasing cash flows)
・ Newly procured long-term debt provided ¥600,819 million, sale and lease back of equipment newly acquired

provided ¥338,705 million, issuance of preferred securities by a subsidiary provided ¥200,000 million, andissuance of corporate bonds provided ¥179,159 million.
(Items decreasing cash flows)・ Outlays included ¥919,696 million for repayments of long-term debt, ¥166,290 million for the repayment oflease obligations, ¥163,437 million for redemption of bonds, ¥124,291 million for decrease in short-termborrowings, net, and ¥25,000 million for decrease in commercial paper, net. In addition, purchase of treasury
stock amounted to ¥22,706 million, and cash dividends paid to minority shareholders came to ¥20,346 million.

(d) Trends in Cash Flow-related Indicators
A summary of trends in cash flow related indicators is presented below.
Fiscal Year Ended

Fiscal Year Ended

Fiscal Year Ended

March 31, 2010

March 31, 2011

March 31, 2012

Equity ratio

10.5 %

13.3%

19.1%

Equity ratio (Market cap.)

55.9 %

77.2%

54.9%

Debt repayment period

2.8 years

2.2 years

1.5 years

Interest coverage ratio

7.1

8.9

16.3

Notes:
1.

2.
3.
4.

5.

The above indicators are calculated using the following formulas based on consolidated figures:
Equity ratio: shareholders’ equity divided by total assets.
Equity ratio (market cap.): market capitalization divided by total assets.
Debt repayment period: interest-bearing debt divided by EBITDA.
Interest coverage ratio: EBITDA divided by interest expenses.
EBITDA: operating income (loss) + depreciation and amortization + including amortization of goodwill.
Market capitalization is calculated based on the number of shares outstanding, net of treasury stock.
Interest-bearing debt: short-term borrowings + commercial paper + current portion of corporate bonds + corporate bonds +long-term borrowings. Lease obligations are excluded.
This also excludes the corporate bonds (WBS Class B2 Funding Notes, issued by J-WBS Funding K.K.) with a face valueof ¥27,000 million acquired by the Company during the fiscal year ended March 31, 2010 that were issued under the wholebusiness securitization scheme associated with the acquisition of Vodafone K.K.

Interest expense is the corresponding figure on the Consolidated Statements of Income.

18

SOFTBANK CORP. CONSOLIDATED FINANCIAL REPORTFor the fiscal year ended March 31, 2012

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

Company NameSOFTBANK CORP.

Details
36th Unsecured Straight Corporate Bond
(Fukuoka SoftBank HAWKS Bond)

37th Unsecured Straight Corporate Bond

38th Unsecured Straight Corporate Bond

Bond
redemptions

27th Unsecured Straight Corporate Bond
(Fukuoka SoftBank HAWKS Bond)
25th Unsecured Straight Corporate Bond

SOFTBANKTELECOM
Corp.
Phoenix JT Limited

2nd Unsecured Straight Corporate Bond
Subordinated Notes Due 2016
(early redemption)
Decrease of ¥25,000 million

Increase or
decrease ofcommercial
paper
Acquisition oftreasury stock

SOFTBANK CORP.

SOFTBANK CORP.

Acquisition of treasury stock in themarketPreferred
securities
issuances
Repayment of
securitization ofreceivables
Increase or
decrease in debt
(excluding
securitization ofreceivables)

SFJ Capital Limited

Issuance of preferred securities

SOFTBANK MOBILE Corp.

Repayment of ¥49,903 million

SOFTBANK CORP.

Increase of ¥439,400 million

SOFTBANK MOBILE Corp.

Decrease of ¥772,577 million

SB Broadband Investments

Decrease of ¥93,370 million

SOFTBANK MOBILE Corp.
etc.

New capital expenditure via leases

Capitalexpenditure byfinancial lease

35

SOFTBANK CORP.

Summary
Issue date: June 17, 2011
Redemption date: June 17, 2016
Total amount of issue: ¥100,000 million
Interest rate: 1.00%/year
Issue date: June 10, 2011
Redemption date: June 10, 2014
Total amount of issue: ¥30,000 million
Interest rate: 0.65%/year
Issue date: January 27, 2012
Redemption date: January 27, 2014
Total amount of issue: ¥50,000 million
Interest rate: 0.42%/year
Redemption date: June 10, 2011
Redeemed amount: ¥60,000 million
Redemption date: June 17, 2011
Redeemed amount: ¥53,500 million
Redemption date: December 7, 2011
Redeemed amount: ¥15,000 million
Redemption date: December 15, 2011
Redeemed amount: ¥32,400 million

Period for acquisition: September 2 to 7,
2011 (execution base)Total cost of acquisition: ¥10,793 million
Period for acquisition: October 3 to 5, 2011
(execution base)Total cost of acquisition: ¥11,899 million
Issue date: September 22, 2011
Total amount of issue: ¥200,000 million
Dividend rate: 2.04%/year
Repayment of funds procured via
securitization of mobile handsets
installment sales receivables
Mainly increase of long-term borrowings
related to refinancing of the funds procured
by SOFTBANK MOBILE Corp. via wholebusiness securitization
Repayment of funds raised via the wholebusiness securitization financing scheme
Repayment of borrowings through the saleof Yahoo! Inc. shares35
Funds newly procured during the period:¥338,705 million

Refer to page 42, “3. Consolidated Financial Statements – (6) Notes (Consolidated Statements of Cash Flows) – 2. Proceeds from sale ofmarketable and investment securities and repayment of long-term debt”.

19SOFTBANK CORP. CONSOLIDATED FINANCIAL REPORTFor the fiscal year ended March 31, 2012

(3) Fundamental Policy for Distribution of Profit, and Dividend for the Fiscal Year
The Company has prioritized reduction of its net interest-bearing debt in order to improve the Group’s financial
status after the acquisition of Vodafone K.K. (currently SOFTBANK MOBILE). The Company has steadily
reduced its net interest-bearing debt, supported by strong results in the Mobile Communications segment. Net
interest-bearing debt has been reduced to under 30% of the level at March 31, 2009 over three years.

As a resultof these efforts, the Company’s credit ratings have been raised substantially.
In light of this improvement in the Group’s financial status, growth potential of businesses and other factors, theCompany has decided to change its policy.

The Group will now focus on investing actively for sustained growth

and returning profits to shareholders, while maintaining a sound financial status.
Under this new policy, the Company has decided to propose raising the year-end dividend per share for the
fiscal year by ¥35.00 from ¥5.00 in the previous fiscal year to ¥40.00. This increase in the dividend for the fiscal
year includes early implementation of the dividend increase previously planned for the fiscal year ending March
31, 2015.

20

SOFTBANK CORP. CONSOLIDATED FINANCIAL REPORTFor the fiscal year ended March 31, 2012

2.

The SOFTBANK GroupAs of March 31, 2012, the Group’s business segments were comprised of the following consolidated subsidiaries
and equity method companies.

The segments’ main businesses were as follows.

WILLCOM, Inc. is in the process of reorganization under the Corporate Reorganization Act and the Company
does not have effective control over WILLCOM, Inc. Therefore, WILLCOM, Inc. is not treated as a subsidiary.

Consolidated
Subsidiaries

Equity Method
Non-consolidated
Subsidiaries andAffiliates

Mobile Communications

3

1

Broadband
Infrastructure

3－

Fixed-line
Telecommunications

2－

Provision of fixed-line telecommunications, etc.
(Core company: SOFTBANK TELECOM Corp.36)

127Internet-based advertising operations, e-commerce site
operations such as Yahoo! Auctions and Yahoo! Shopping,membership services, etc.
(Core company: Yahoo Japan Corporation36)

113

66

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

133

74

Business Segments

Reportablesegments

Internet Culture

Others

Total

Main Business of Segment and Name of Business
Provision of mobile communication services and sale ofmobile handsets accompanying the services, etc.
(Core company: SOFTBANK MOBILE Corp.)
Provision of high-speed Internet connection service, IP
telephony service, and provision of content, etc.
(Core company: SOFTBANK BB Corp.36)［Listed Companies］
The Company’s five following consolidated subsidiaries were listed on domestic stock exchanges as of March 31,
2012:
Company NameYahoo Japan Corporation

36

Listed ExchangeTokyo Stock Exchange First section
Osaka Stock Exchange JASDAQ (Standard)

SOFTBANK TECHNOLOGY CORP.

Tokyo Stock Exchange First section

Vector Inc.

Osaka Stock Exchange JASDAQ (Standard)

ITmedia Inc.

Tokyo Stock Exchange Mothers

Carview Corporation

Tokyo Stock Exchange Mothers

Although SOFTBANK BB Corp., SOFTBANK TELECOM Corp., and Yahoo Japan Corporation are included as consolidated subsidiaries in the
Broadband Infrastructure, Fixed-line Telecommunications, and Internet Culture segments, respectively, SOFTBANK BB Corp., SOFTBANKTELECOM Corp., and Yahoo Japan Corporation operate multiple businesses and therefore their operating results are allocated to multiple
business segments.

21

SOFTBANK CORP. CONSOLIDATED FINANCIAL REPORTFor the fiscal year ended March 31, 2012

3.

Management Policies(1) Basic Management Approach
The SOFTBANK Group is guided by a corporate philosophy of “Information Revolution – Happiness foreveryone.” The Group aims to be a provider of the most essential technologies and services to people around theworld through its endeavors in various businesses in the information industry, while maximizing its enterprisevalue.

(2) Target Management Indices
The Group has set a target of achieving consolidated operating income of ¥1 trillion in the fiscal year ending
March 31, 2017.

(3) Medium- to Long-term Strategies
1.

Forming and Expanding a Strategic Synergy Group Focused on Asia

The Group operates in the information industry, which is characterized by rapid shifts in technology, businessmodels, and market needs.

To become a provider of the most essential technologies and services to people

around the world, it is imperative that the Group is flexible regarding any specific technologies or business models,and continues transforming itself repeatedly in line with the changes in the times, expanding and changing its linesof business.
While the Group will naturally work to establish new services and businesses internally, another strategy is tocomplement this activity and accelerate self-transformation by investing in and forming joint ventures withcompanies that have the best technologies or business models at the time, eventually forming and expanding a“strategic synergy group” focused on Asia. Each of the companies in the strategic synergy group will makedecisions autonomously, enabling them to continue to grow while creating synergies with one another.

2.

Focus on Mobile Internet

Forecasts for trends in Japan five years from now suggest the cumulative number of smartphones will haveincreased more than three-fold, and that the number of tablets sold will have increased almost six-fold.37

These

trends point to a world-wide shift toward using these mobile devices as a means for accessing the Internet, inpreference to PCs.

The Group’s strategy is to develop its businesses focused on the mobile Internet domain,which will expand in line with this change.
In line with this strategy, the Group will work to strengthen the mobile communications network, provide highspeed telecommunications services, and enhance its lineup of smartphones and tablets.

It is also working toenhance its cloud services, optimize services such as e-commerce for mobile devices, and provide a full array ofmobile content including video, electronic books, and games.

Attractive services and content are not only

capable of creating strong earnings in themselves, but are also important elements to distinguish the Group’s
mobile communications services from competitors. As such, they have the potential to increase data telecom
service revenue even further.
37

Mobile Computing Promotion Consortium forecast (November 25, 2011)
Comparison of the forecast for one year from April 2011 to March 2012 and from April 2016 to March 2017.

22

SOFTBANK CORP. CONSOLIDATED FINANCIAL REPORTFor the fiscal year ended March 31, 2012(4) Important Management Issues for the Company
The Group recognizes the need to enhance its network for the mobile communications services provided by
SOFTBANK MOBILE Corp. SOFTBANK MOBILE Corp. has increased the number of mobile phone basestations from 122,508 at the end of March 2011, to 185,881 as of the end of March 2012.
In March 2012, SOFTBANK MOBILE Corp. received an allocation for the 900MHz band, known as the“platinum band.”This band will enable more efficient and wider coverage compared to the SOFTBANKMOBILE Corp.’s existing band.

The new band will enable SOFTBANK MOBILE Corp. to makecomprehensive improvements to its communication environment. Initially, these include coping with traffic
increase and introducing new technologies such as Long Term Evolution (LTE).

Moreover, SOFTBANKMOBILE Corp. will build a robust and disaster-proof communication environment and lifeline network taking
advantage of the greater efficiency and wider coverage of the platinum band.
At the same time, the Group will continue efforts to improve user convenience by providing small base stations(femtocells) and Wi-Fi routers free of charge in users’ homes and in stores.

(5) Progress in Reduction of Net Interest-bearing Debt and Change of Policy
In order to improve its financial status, the Group prioritized reducing its net interest-bearing debt by setting atarget of reducing its ¥1,939,520 million of net interest-bearing debt38 as of the end of March 2009 by half overthree years (by the end of March 2012), and to zero over six years (by the end of March 2015).

Net

interest-bearing debt at the end of March 2012 had been reduced by far more than the target of reducing net
interest-bearing debt by half.

It stood at ¥547,298 million, down 71.8% from the end of March 2009. As aresult of these efforts, the Company’s credit ratings have been raised substantially.
In light of this improvement in the Group’s financial status, growth potential of businesses and other factors, theCompany has decided to change its policy.

The Group will no longer pursue the target of reducing net

interest-bearing debt to zero by the end of March 2015, but will focus on investing actively for sustained growth
and returning profits to shareholders, while maintaining a sound financial status.

38

Net interest-bearing debt: interest-bearing debt minus cash position.
Interest-bearing debt: short-term borrowings + commercial paper + current portion of corporate bonds + corporate bonds + long-term debt.
Lease obligations are excluded.
Cash position: cash and cash deposits + marketable securities recorded as current assets.

23

SOFTBANK CORP. CONSOLIDATED FINANCIAL REPORTFor the fiscal year ended March 31, 2012

4. Consolidated Financial Statements(1) Consolidated Balance Sheets(Millions of yen)
As ofMarch 31, 2011

As ofMarch 31, 2012

AmountAmountASSETS
Current assets:
Cash and deposits
Notes and accounts receivable - tradeMarketable securities¥861,657¥1,016,251

657,774

661,287

78,0994,575

Merchandise and finished products

49,88742,618Deferred tax assets

90,90756,469Other current assets
Less:
Allowance for doubtful accounts
Total current assets

162,068

168,264(37,778)(39,014)

1,862,617

1,910,452

Buildings and structures

74,867

77,404

Telecommunications equipment

840,839

988,541

Telecommunications service lines

68,856

65,213

Land

22,882

23,175Construction in progress

55,66380,501Other property and equipment

50,33961,555

Total property and equipment

1,113,447

1,296,393

Goodwill

839,238

780,242

Software248,872

310,151

Other intangibles

32,23336,1201,120,345

1,126,514

Investment securities

340,436

338,198

Deferred tax assets

109,145

104,327

123,360

134,076(15,008)
557,933
2,791,726(15,957)
560,6442,983,553

1,381

5,699

¥4,655,725¥4,899,705

Fixed assets:
Property and equipment, net:

Intangible assets, net:

Total intangible assets
Investments and other assets:

Other assets
Less:
Allowance for doubtful accounts
Total investments and other assets
Total fixed assets
Deferred charges
Total assets

24

SOFTBANK CORP. CONSOLIDATED FINANCIAL REPORTFor the fiscal year ended March 31, 2012

Consolidated Balance Sheets(Millions of yen)
As ofMarch 31, 2011

As ofMarch 31, 2012

AmountAmountLIABILITIES AND EQUITYCurrent liabilities:
Accounts payable - trade
Short-term borrowings¥193,644¥190,532

410,950

403,167

Commercial paper

25,000-Current portion of corporate bonds
Accounts payable - otherand accrued expenses

128,500

144,988561,421835,053

Income taxes payable

115,355

125,116

Current portion of lease obligations

131,305

152,682

Other current liabilities

78,23072,184

Total current liabilities

1,644,407

1,923,725

Corporate bonds

507,390459,900

Long-term debt

1,030,959

560,070

Deferred tax liabilities

26,582

20,370Liability for retirement benefits

14,414

14,953

Allowance for point mileage

41,94732,074

Lease obligations

199,769

347,699

Other liabilities

310,636

105,272

Total long-term liabilities

2,131,699

1,540,339

Total liabilities

3,776,107

3,464,065

Common stock

188,775

213,797

Additional paid-in capital

212,510

236,562

Retained earnings

222,277

530,534(240)(22,947)

Total shareholders’ equity

623,321957,947

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

34,92010,566

11,224(993)(50,213)(30,826)

Total valuation and translation adjustments(4,068)(21,253)

703

898

Minority interests

259,661

498,047

Total equity

879,618

1,435,640¥4,655,725¥4,899,705

Long-term liabilities:

Equity:Less: Treasury stock

Stock acquisition rights

Total liabilities and equity

25

SOFTBANK CORP. CONSOLIDATED FINANCIAL REPORTFor the fiscal year ended March 31, 2012

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

Fiscal year ended
March 31, 2011
April 1, 2010 toMarch 31, 2011
AmountFiscal year ended
March 31, 2012
April 1, 2011 toMarch 31, 2012
AmountNet sales
Cost of sales
Gross Profit¥3,004,640¥3,202,435

1,373,617

1,485,750

1,631,022

1,716,685

Selling, general and administrative expenses

1,001,859

1,041,401

629,163

675,283

2,228

1,829

1,628

2,570

2,874

-

Other non-operating income
Non-operating income

10,5896,908

17,32011,308Interest expense
Equity in losses of affiliated companies
Refinancing related expense
Other non-operating expenses
Non-operating expenses

104,019

62,206-

2,947

Operating income
Interest income
Dividends income
Equity in earnings of affiliated companies

2,783

24,956

19,26522,831126,069

112,940

520,414573,651

Gain on sale of investment securities

6,623

88,368

Dilution gain from changes in equity interest
Unrealized appreciation on valuation of investments andloss on sale of investments at subsidiaries in the U.S.,net
Other special income

2,879

20,185

263

1,985

4,485

7,225

Special income

14,252

117,765

Valuation loss on investment securities
Premium on advanced redemption of debt security
Loss on liquidation of subsidiaries and affiliates
Loss on disaster
Valuation loss on option
Loss on adjustment for changes of accounting standard for
asset retirement obligations
Other special losses
Special loss

8,739

13,971-

21,875

Ordinary income

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

26-

19,071

14,416

-

9,521

-

7,099

-

14,276

4,242

54,05359,160480,612632,256

173,509

196,509

27,391-

32,047

58,203232,949

254,712247,663

377,543

57,95063,790¥189,712¥313,752

SOFTBANK CORP. CONSOLIDATED FINANCIAL REPORTFor the fiscal year ended March 31, 2012

Consolidated Statements of Comprehensive Income(Millions of yen)

Fiscal year ended
March 31, 2011
April 1, 2010 toMarch 31, 2011
AmountFiscal year ended
March 31, 2012
April 1, 2011 toMarch 31, 2012
AmountIncome before minority interests
Other comprehensive income
Unrealized loss on available-for-sale securities
Deferred loss on derivatives under hedge accounting
Foreign currency translation adjustment
Share of other comprehensive income of affiliatedcompanies accounted for using equity method
Total other comprehensive loss

¥247,663¥377,543(6,822)(25,780)(3,176)(12,661)(10,195)

21,328(7,526)(3,442)(27,720)(20,554)

Comprehensive income

219,942356,988

owners of the parent

159,777

296,543

minority interests

60,16560,445Comprehensive income attributable to

27

28

Balance at March 31, 2011

Total changes in the year

-

(558)

-

-

¥212,510

(582)

-

24

-

-

¥188,775

-

-

-

-

Purchase of treasury stock
Adjustments of retained earnings due to change
in scope of consolidation
Changes in foreign affiliate’s interests in its
subsidiary
Items other than changes in shareholders’equity, net-

Net income

24

-

-

24

¥213,068

Additional
paid-in
capital¥222,277

183,715

-

-

(585)

-

189,712(5,411)-(4,510)¥43,071Retainedearnings

Shareholders’ equity¥188,750

Commonstock

Cash dividends

Exercise of warrants

Changes of items during the year

Balance at April 1, 2010
Decrease in retained earnings due to adoptionof practical solution on unification of
accounting policies applied to associates
accounted for using the equity method

Fiscal year from April 1, 2010 to March 31, 2011:(3)Consolidated Statements of Changes in Equity¥(240)

(15)

-

-

-

(15)

-

-

-

-

¥(225)

Treasury stock¥623,321

183,166

-

(582)

(585)

(15)

189,712(5,411)49(4,510)¥444,665

Total

Valuation and translation adjustments¥34,920(8,943)(8,943)

-

-

-

-

-

-

-

¥43,864¥ 11,224(3,303)(3,303)

-

-

-

-

-

-

-

¥ 14,528¥(50,213)(17,687)(17,687)

-

-

-

-

-

-

-

¥(32,525)

Unrealized gain Deferred gain (loss)
Foreign currency(loss) on
on derivatives
translation
available-forunder hedge
adjustments
sale securities
accounting¥(4,068)(29,935)(29,935)

-

-

-

-

-

-

-

¥25,866

Total

¥703

226

226

-

-

-

-

-

-

-

¥476

Stock acquisitionrights¥259,661(233,301)(233,301)

-

-

-

-

-

-

-

¥492,963

Minority
interests¥879,618(79,843)(263,010)

(582)

(585)

(15)

189,712(5,411)49(4,510)¥963,971

Total equity(Millions of yen)

SOFTBANK CORP. CONSOLIDATED FINANCIAL REPORTFor the fiscal year ended March 31, 2012

-

-

-

Purchase of treasury stock
Adjustments of retained earnings due to change
in scope of consolidation
Changes in foreign affiliate’s interests in its
subsidiary
Items other than changes in shareholders’equity, net

-

-

29

25,022¥213,797

Balance at March 31, 2012
¥236,562

24,052--

Total changes in the year

(927)

-

-

-

24,979¥212,510

Additional
paid-in
capital

Net income

25,022¥188,775

Commonstock¥530,534

308,257

-

-

(83)

-

313,752(5,411)-¥222,277

Retainedearnings

Shareholders’ equity

Cash dividends

Exercise of warrants

Changes of items during the year

Balance at April 1, 2011

Fiscal year from April 1, 2011 to March 31, 2012:¥(22,947)(22,706)---(22,706)---¥(240)

Treasury stock¥957,947

334,625

-

(927)

(83)

(22,706)

313,752(5,411)50,002¥623,321

Total

Valuation and translation adjustments¥10,566(24,354)(24,354)

-

-

-

-

-

-

¥34,920¥ (993)(12,217)(12,217)

-

-

-

-

-

-

¥ 11,224¥(30,826)

19,387

19,387

-

-

-

-

-

-

¥(50,213)

Unrealized Deferred gain(loss)
Foreign currency
gain(loss) on
on derivatives
translation
available-forunder hedge
adjustments
sale securities
accounting¥(21,253)(17,184)(17,184)

-

-

-

-

-

-

¥(4,068)

Total

¥898

195

195

-

-

-

-

-

-

¥703

Stock acquisitionrights¥498,047

238,385

238,385

-

-

-

-

-

-

¥259,661

Minority
interests¥1,435,640

556,021

221,396

(927)

(83)

(22,706)

313,752(5,411)50,002¥879,618

Total equity(Millions of yen)

SOFTBANK CORP. CONSOLIDATED FINANCIAL REPORTFor the fiscal year ended March 31, 2012

SOFTBANK CORP. CONSOLIDATED FINANCIAL REPORTFor the fiscal year ended March 31, 2012

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

Fiscal year ended
March 31, 2011

Fiscal year ended
March 31, 2012

April 1, 2010 toMarch 31, 2011

April 1, 2011 toMarch 31, 2012

Cash flows from operating activities:
Income before income taxes and minority interests¥480,612¥632,256

Depreciation and amortization

224,937

275,825

Amortization of goodwill

62,68862,606Equity in (earnings) losses of affiliated companies(2,874)

2,947

Dilution gain from changes in equity interest, net(2,045)(19,685)

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

8,739

13,971(263)(1,985)Gain on sale of marketable and investment securities, net(5,972)(88,278)

Foreign exchange gain, net(1,587)(255)

Interest and dividend income(3,856)(4,399)Interest expense

104,019

62,206

Decrease (increase) in receivables - trade167,452(5,031)

Increase (decrease) in payables - trade33,679(3,004)37,277

66,958

1,102,806

994,130

3,900

4,222

Interest paid

(94,708)(62,485)

Income taxes paid

(186,162)(195,640)

825,837

740,227

Adjustments for:

Changes in operating assets, and liabilities

Other, net
Sub-totalInterest and dividends received

Net cash provided by operating activities- Continued -30

SOFTBANK CORP. CONSOLIDATED FINANCIAL REPORTFor the fiscal year ended March 31, 2012

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

Fiscal year ended
March 31, 2011

Fiscal year ended
March 31, 2012

April 1, 2010 toMarch 31, 2011

April 1, 2011 toMarch 31, 2012

Cash flows from investing activities:
Purchase of property and equipment, and intangibles
Purchase of marketable and investment securities
Proceeds from sale of marketable and investment securities¥ (208,553)¥ (455,023)(79,441)(33,323)

31,492

87,985-30,375Acquisition of interests in subsidiaries newly consolidated,
net of cash acquired(701)(4,007)

Other, net(7,243)(1,661)(264,447)(375,655)

Increase (decrease) in short-term borrowings, net

20,129(124,291)

Increase (decrease) in commercial paper, net

25,000(25,000)

Proceeds from advanced redemption of debt security

Net cash used in investing activities
Cash flows from financing activities:

Proceeds from long-term debt

252,900

600,819

Repayment of long-term debt

(459,165)(919,696)

Proceeds from issuance of bonds

233,936

179,159

Redemption of bonds(105,508)(163,437)

1,684

322

-

200,000(15)(22,706)

Cash dividends paid

(5,387)(5,420)Cash dividends paid to minority shareholders
Proceeds from sale and lease back of equipment newly acquired(16,009)(20,346)

117,596338,705

Repayment of lease obligations(155,063)(166,290)

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

Payments for repurchase of minority interests and long-term debt

(213,564)-

Other, net(19,260)(68,486)

Net cash used in financing activities(397,728)(196,667)(4,203)

165

159,457

168,069

1,919

68

(64)

(734)

(1,837)-

687,681

847,155¥847,155¥1,014,558

Proceeds from issuance of shares to minority shareholders
Proceeds from issuance of preferred securities by a subsidiary
Purchase of treasury stock

Effect of exchange rate changes
on cash and cash equivalents
Net increase in cash and cash equivalents
Increase in cash and cash equivalents due to newly consolidated
subsidiaries
Decrease in cash and cash equivalents due to exclusion ofpreviously consolidated subsidiaries
Decrease in cash and cash equivalents resulting from corporate
separation
Cash and cash equivalents, beginning of the year
Cash and cash equivalents, end of the year31

SOFTBANK CORP. CONSOLIDATED FINANCIAL REPORTFor the fiscal year ended March 31, 2012(5) Significant Doubt about Going Concern Assumption
There are no applicable items.

(6) Basis of Presentation of Consolidated Financial Statements
1. Changes in scope of consolidation
As of March 31, 2012, SOFTBANK CORP. (the “Company”) consolidated 133 subsidiaries (together, the “Group”). 63
subsidiaries were not consolidated as the individual and aggregate amounts were not considered material in relation to theconsolidated total assets, net sales, net income, and retained earnings of the SOFTBANK consolidated financial statements.
Changes in scope of consolidation are as follows:<Increase>
25 companies
Significant changes:
SFJ Capital Limited<Decrease>
9 companies
Significant changes:
Charlton Acquisition LLPThe Company owns 100% shares issued by WILLCOM, Inc. However, WILLCOM, Inc. is in the process of reorganization
under the Corporate Reorganization Act and the Company does not have effective control over WILLCOM, Inc. Therefore,
WILLCOM, Inc. is not treated as a subsidiary.
2. Changes in scope of equity method
As of March 31, 2012, the Company held 3 non-consolidated subsidiaries and 71 affiliates, all of which were accounted forunder the equity method. 60 non-consolidated subsidiaries and 26 affiliates were not accounted for under the equity method, as
the individual and aggregate amounts were not considered material in relation to the net income and retained earnings of the
SOFTBANK consolidated financial statements.
Changes in scope of equity method are as follows:<Increase>
9 companies
Significant changes:
InMobi Pte Ltd<Decrease>
8 companies
3. Fiscal year end
Fiscal year ends of consolidated subsidiaries for both domestic and overseas entities are as follows:<Fiscal year end>
<Domestic><Overseas>
March end
(same as the consolidated balance sheet date)46
53
July end
11
November end
1
December end
1
18
February end
3-32SOFTBANK CORP. CONSOLIDATED FINANCIAL REPORTFor the fiscal year ended March 31, 2012

4. Summary of significant accounting policies(1) Evaluation standards and methods for major assets[1] Marketable securities and investment securities
Held-to-maturity debt securities: Stated at amortized cost
Available-for-sale securities:
With market quotations:
Stated at fair value, which represents the market prices at the balance sheet date(unrealized gain/loss is included as a separate component in equity, net of tax, while
cost is primarily determined using the moving-average method)
Without market quotations:
Carried at cost, primarily based on the moving-average method
Certain subsidiaries of the Company in the United States of America qualify as investment companies under theprovisions set forth in Financial Services – Investment Companies of the FASB Accounting Standards Codification(ASC) Topic 946 and account for the investment securities in accordance with the ASC 946. The investment
securities are carried at fair value, and net changes in fair value are recorded in the consolidated statements of income
under the application of the ASC 946.
[2] Derivative instruments:

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

Carried at cost, primarily net selling value determined by the moving-average method(2) Depreciation and amortization[1] Property and equipment:
Buildings and structures:
Telecommunications equipment:
Telecommunications service lines:
Others:Computed primarily using the straight-line method
Computed using the straight-line method
Computed using the straight-line method
Computed primarily using the straight-line method[2] Intangible assets:
Computed using the straight-line method
Finance leases in which the ownership of leased assets is not transferred to lessees at the end of lease periods are computed
using the straight-line method over the period of the finance leases. Finance lease transactions in which the ownership ofleased assets was not transferred to lessees and contracted before April 1, 2008, are accounted for as operating leasetransactions and “as if capitalized” information is disclosed in the notes to the Company’s consolidated financial statements.
(3) Accounting principles for major allowances and accruals<Allowance for doubtful accounts>
To prepare for uncollectible credits, allowance for doubtful accounts is calculated based on the actual bad debt ratio, andspecific allowance for doubtful accounts deemed to be uncollectible is calculated considering its collectability.
<Accrued retirement benefits>
SOFTBANK MOBILE, SOFTBANK TELECOM, and certain other subsidiaries have defined benefit pension plans
for their employees. These companies account for the obligation for retirement benefits based on the projected benefit
obligations at the end of the fiscal year.
SOFTBANK MOBILE and SOFTBANK TELECOM amended the pension plans by suspending the defined benefit
pension plans at the end of March 2007 and March 2006, respectively, and implementing defined contribution pension
plans. The retirement benefits existed and calculated under the benefit pension plan were fixed and will be paid at theretirement of applicable employees, and the projected benefit obligations are calculated based on these fixed retirement
benefits. As a result, there is no service cost under the defined benefit pension plans at SOFTBANK MOBILE andSOFTBANK TELECOM.

33

SOFTBANK CORP. CONSOLIDATED FINANCIAL REPORTFor the fiscal year ended March 31, 2012

<Allowance for point mileage >SOFTBANK MOBILE has an allowance for point mileage which is accrued based on the estimated future obligation
arising from point service, based on past experience.
(4) Translation of foreign currency transactions and accounts
All assets and liabilities in foreign currencies are translated at the foreign currency exchange rates prevailing at the respectivebalance sheet dates. Foreign currency exchange gains or losses are charged to net income when incurred.
The translation of foreign currency-denominated revenues and expenses in the financial statements of foreign consolidated
subsidiaries into Japanese yen is performed by using the average exchange rate for the period. Assets and liabilities aretranslated using the foreign currency exchange rates prevailing at the balance sheet dates, and capital stock is translated using
the historical foreign currency exchange rates. Foreign currency financial statement translation differences are presented asa separate component of “Equity,” and the portion pertaining to minority shareholders is included in “Minority interests.”(5) Accounting for significant hedge transactions[1] Forward-exchange contract① <Hedge accounting>Receivables and obligations denominated in foreign currencies for which foreign exchange forward contracts are used tohedge the foreign currency fluctuation are translated at the contracted rate, if the forward contracts qualify for hedge
accounting. For forecasted transactions denominated in foreign currencies, recognitions of gains or losses resulting
from changes in fair value of derivative instruments for hedging are deferred until the related gains and losses on hedged
items are recognized.
② <Derivative instruments for hedging and hedged items>
Derivative instruments for hedging:
Forward-exchange contract
Hedged items:
Foreign currency-denominated receivables, obligations, andforecasted transactions③ <Hedging policy>
In accordance with the Group’s policy, derivative financial instruments are used to hedge foreign exchange risk associatedwith hedged items denominated in foreign currencies.
④ < Effectiveness of hedge transactions >For receivables and obligations denominated in foreign currencies, effectiveness of the hedge transaction is omitted due toqualifying for hedge accounting. For forecasted transaction denominated in foreign currencies, the effectiveness of hedgetransaction is assessed by measuring high correlation between the variability of cash flows associated with the foreign
currency fluctuation of hedged items and variability of cash flows of hedge instruments.
[2] Interest rate swap
① <Hedge accounting>
Recognitions of gains or losses resulting from changes in fair value of derivative instruments for hedging are deferred until
the related gains and losses on hedged items are recognized.
② <Derivative instruments for hedging and hedged items>
Derivative instruments for hedging:Interest rate swap contracts
Hedged items:
Interest expense on borrowings③ <Hedging policy>
In accordance with the Group’s policy, derivative financial instruments are used to hedge the risk of exposures tofluctuations in interest rates in accordance with its internal policies, regarding the authorization and credit limit amount.
④ < Effectiveness of hedge transactions >The effectiveness of hedge transaction is assessed by measuring high correlation between the variability of cash flows
associated with the interest rate of hedged items and variability of cash flows of hedge instruments.

34

SOFTBANK CORP. CONSOLIDATED FINANCIAL REPORTFor the fiscal year ended March 31, 2012

(6) Amortization of goodwill“Goodwill” is amortized on a straight-line basis over reasonably estimated periods in which economic benefits are expected
to be realized. Immaterial goodwill is expensed as incurred. The goodwill resulted from acquisition of Vodafone K.K.
(currently SOFTBANK MOBILE) is amortized over a 20-year-period.
(7) Scope of cash and cash equivalents in the consolidated statements of cash flows“Cash and cash equivalents” are comprised of cash on hand, bank deposits withdrawable on demand, and highly liquid
investments with initial maturities of three months or less and a low risk of fluctuation in value.
(8) Other[1] Accounting method for consumption taxes
Consumption taxes are accounted for using the net method of reporting.
[2] Application of consolidated taxation system
BB Mobile Corp., as a parent company of the consolidated tax return, SOFTBANK MOBILE, and Telecom Express Co.,
Ltd., adopted the consolidated taxation system.

(7) Additional information“Accounting Standard for Accounting Changes and Error Corrections” (Accounting Standards Board of Japan (ASBJ) Statement
No. 24, December 4, 2009) and “Guidance on Accounting Standard for Accounting Changes and Error Corrections” (ASBJ
Guidance No. 24, December 4, 2009) were applied to accounting changes and error corrections made on or after April 1, 2011.

35

SOFTBANK CORP. CONSOLIDATED FINANCIAL REPORTFor the fiscal year ended March 31, 2012(8) Notes(Consolidated Balance Sheets)
1. Accumulated depreciation of property and equipment
As of March 31, 2011
1,113,677

million yen

As of March 31, 2012
1,205,104

million yen

2. Investments in non-consolidated subsidiaries and affiliates
As of March 31, 2011
Investment securities and investments in partnerships

192,046

million yen

As of March 31, 2012
209,484

million yen

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

As of March 31, 2011

As of March 31, 2012

Assets pledged as collateral:
Cash and deposits

222,613

99

Notes and accounts receivable - trade306,527-

Marketable securities

73,592-

Buildings and structures

11,694-

Telecommunications equipment

281,936-

Telecommunications service lines

71

-

Land

10,747-

Investments and other assets - other assets

9,554

-

Total

916,738

million yen

As of March 31, 201199

million yen

As of March 31, 2012

Secured liabilities:
Accounts payable - trade

964

935

Short-term borrowings

93,68627

Long - term debt*

772,577

64

Total

867,227

million yen

1,027

million yen*Consolidated subsidiaries shares owned by SOFTBANK MOBILE, SOFTBANK MOBILE shares owned by BB
Mobile Corp. and BB Mobile Corp. shares owned by Mobiletech Corporation were pledged as collateral for long-term
debt (totaled to ¥772,577 million as of March 31, 2011) resulting from the acquisition of SOFTBANK MOBILE, in
addition to the assets pledged as collateral above. In October, 2011 the long term loan was paid off and the collateralpledged was canceled.

36

SOFTBANK CORP. CONSOLIDATED FINANCIAL REPORTFor the fiscal year ended March 31, 2012

(2) Borrowings by security lending agreements
Cash receipts as collateral from financial institutions, to whom the Company lent a portion of shares in its subsidiary under
security lending agreements are presented as follows:
As of March 31, 2011
Short-term borrowings

114,000

million yen

As of March 31, 2012
93,000

million yen(3) Others
A consolidated subsidiary purchased assets by installments, and the assets of which ownership was not transferred to theconsolidated subsidiary and its installment payables are as follows:
As of March 31, 2011

As of March 31, 2012

Assets of which ownership is not transferred:
Buildings and structures
Telecommunications equipment
Construction in progress
Other property and equipment
Software60

59

55,07554,927

186

210

1

6

14,05517,006

Other intangibles

179

36

Investments and other assets - other assets
Total

328

246

69,886

million yen

As of March 31, 2011

72,494

million yen

As of March 31, 2012

Installment payables:
Accounts payable - other and accrued expenses

9,906

16,208Long-term liabilities - Other liabilities
Total

63,08658,03772,993

million yen

74,245

million yen

4. Guarantee obligation
The Company has entered into a sponsor agreement with WILLCOM, Inc. Under the sponsor agreement, the Company
provides necessary financial support to WILLCOM, Inc. for business operation and execution of the rehabilitation plan. The
agreement is effective until WILLCOM, Inc. completes the payment of its reorganization claims and reorganization security
interests (total amount ¥41,000 million) amounting to ¥ 40,969 million as of March 31, 2011, and ¥ 34,151 million as of March
31, 2012, respectively.
5. Line of credit as a creditor (not used)
As of March 31, 201115,89437

million yen

As of March 31, 2012
14,785

million yen

SOFTBANK CORP. CONSOLIDATED FINANCIAL REPORTFor the fiscal year ended March 31, 2012

6. Financial covenants(As of March 31, 2012)
The Group's interest-bearing debt includes financial covenants, with which the Group is in compliance. The major financial
covenants are as follows. If the Group fails to comply with the following covenants, creditors may require repayment of all
debt. (Where the covenants set several conditions, the strictest condition is presented below.)
As of March 31, 2012, there is no infringement of the debt covenants.
(1) The amount of the Company's net assets at the end of the year and the first half of the year must not fall below 75% of theCompany's net assets at the end of the previous year.
(2) The consolidated balance sheets of the Company and BB Mobile Corp. at the end of the year and the first half of the year
must not show a net capital deficiency. The balance sheets of SOFTBANK MOBILE, SOFTBANK BB and
SOFTBANK TELECOM at the end of the year and the first half of the year, must not show a net capital deficiency.

(Consolidated Statements of Income)
1. Selling, general and administrative expenses
Sales commission and sales promotion expense

Fiscal year ended
March 31, 2011
513,482 million yen

Fiscal year ended
March 31, 2012
541,807 million yen

Payroll and bonuses

126,883

124,024

Provision for allowance for doubtful accounts

14,646

13,362

2. Refinancing related expense(For the fiscal year ended March 31, 2012)
It is primarily ¥23,957 million of procurement expense related to the total amount of ¥550.0 billion financing based on the resolutionof the directors’ meeting held on July 21, 2011 and cancellation expense of interest-rate swap to hedge interest rate risks along withthe repayment of SBM loan*.
*¥1,366.0 billion loan to SOFTBANK MOBILE procured in November 2006 by Mizuho Trust & Banking Co., Ltd., the “Tokutei
Kingai Trust Trustee” under the whole business securitization scheme. The SBM loan was associated with the series of financing
transactions for the Company to acquire Vodafone K.K. (currently SOFTBANK MOBILE). This loan was paid off on October 27,
2011.
3. Gain on sale of investment securities(For the fiscal year ended March 31, 2012)
The gain on sale of investment securities for the current period is primarily attributable to a ¥76,430 million gain on sale of Yahoo!
Inc. shares.
In connection with the Company’s financing of approximately $1,135 million from CITIBANK, N.A. through its U.S. subsidiary in
February 2004, certain forward contracts (“collar transaction”) were entered into, which allowed the obligation to be settled atmaturity by delivering Yahoo! Inc. shares held by the Company’s subsidiary. The forward contracts were to effectively hedge thevariability of cash flows associated with the future market price of the underlying securities.
During the fiscal year ended March 31, 2012, the obligation under the forward contracts was settled at maturity by effectively
delivering the shares of Yahoo! Inc. (book basis of $142 million) to CITIBANK, N.A. The cash proceeds received by theCompany’s subsidiary from delivering the shares of Yahoo! Inc. to CITIBANK, N.A. were then remitted to repay the related
obligation. “Gain on sale of investment securities” of ¥76,430 million ($993 million) was recorded as a result of settling theforward contracts.
During the fiscal year ended March 31, 2011, the shares of Yahoo! Inc. were reclassified to “Marketable securities” under current
assets from “Investment securities” under investment and other assets. This was to coincide with the reclassification of the related
obligation under current liabilities, of which the remaining period until maturity was less than one year. Accordingly, the gain onsale from this transaction was recorded as “Gain on sale of investment securities.”

38

SOFTBANK CORP. CONSOLIDATED FINANCIAL REPORTFor the fiscal year ended March 31, 2012

4. Unrealized appreciation on valuation of investments and loss on sale of investments at subsidiaries in the United Statesof America, net
Certain subsidiaries of the Company in the United States of America qualify as investment companies under the provisions set forthin Financial Services – Investment Companies of the FASB ASC 946 and account for investment securities in accordance with ASC
946.
The net changes in the fair value of the investments are recorded as unrealized appreciation on valuation of investments and loss onsale of investments at subsidiaries in the U.S., net and loss on sale of investments, computed based on the acquisition cost, is also
included in this account. The unrealized appreciation on valuation of investments and loss on sale of investments included inunrealized appreciation on valuation of investments and loss on sale of investments at subsidiaries in the U.S., net in the consolidated
statements of income are as follows:
Fiscal year ended
March 31, 2011
Unrealized appreciation on valuation of investment
at subsidiaries in the U.S., net
Loss on sale of investments
at subsidiaries in the U.S., net
Total

Fiscal year ended
March 31, 2012

1,041

3,584

(777)

(1,598)263 million yen

1,985

million yen

5. Premium expense on advanced repayment of long-term debt
(For the fiscal year ended March 31, 2012)
As a result of the refinancing of SBM loan, a premium expense occurred for the advanced repayment of the entire loan on October27, 2011.

39

SOFTBANK CORP. CONSOLIDATED FINANCIAL REPORTFor the fiscal year ended March 31, 2012

(Consolidated Statements of Changes in Equity)
Fiscal year from April 1, 2010 to March 31, 2011
1. Class and number of outstanding shares(shares in thousands)
March 31, 2010

Increase

Decrease

March 31, 2011

1,082,503

26-

1,082,530

Number of common stocks

Note: Increase resulted from the exercise of stock acquisition rights.
2. Class and number of treasury stocks(shares in thousands)
March 31, 2010

Increase

Decrease

174

5

-

Number of common stocks

March 31, 2011180

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

Type

The Company
Consolidated
subsidiaries

Number of shares for stock acquisition rights(in thousands)
March 31,
March 31,
Increase
Decrease
2011
2010
-

Class of shares

Total

Millions ofyenMarch 31,
2011
100

-

585

-

685

(2) Stock acquisition rights other than aboveType

Detail ofstock acquisition rights

Consolidated
subsidiaries-

Number of shares for stock acquisition rights(in thousands)
March 31,
March 31,
Increase
Decrease
2011
2010

Class of shares

Total

Millions ofyenMarch 31,
2011

-

18

-

18

4. Dividends(1) Dividend paid
Resolution
Ordinary general meeting ofshareholders, June 25, 2010

Class of shares

Amount of dividend

Dividend(Millions of yen)

per share

Common stocks

5,411

¥5.00

Record date

Effective date

March 31, 2010

June 28, 2010

(2) Dividends which recorded date is in the fiscal year ended March 31, 2011 and effective date for payment is in the fiscal
year ended March 31, 2012
Resolution

Class ofAmount of dividend

Source ofDividend

shares(Millions of yen)

dividend

per share

Ordinary general meeting ofCommonshareholders, June 24, 2011

stocks5,411

40

Retainedearnings¥5.00

Record date

Effective date

March 31, 2011

June 27, 2011

SOFTBANK CORP. CONSOLIDATED FINANCIAL REPORTFor the fiscal year ended March 31, 2012

Fiscal year from April 1, 2011 to March 31, 2012
1. Class and number of outstanding shares(shares in thousands)
March 31, 2011

Increase

Decrease

March 31, 2012

1,082,530

25,198-

1,107,728

Number of common stocks

Note: Increase resulted from the exercise of stock acquisition rights.
2. Class and number of treasury stocks(shares in thousands)
March 31, 2011
Number of common stocks

Increase

180

Decrease

March 31, 2012

-

9,213

9,033

Note: Increase resulted from the acquisition of 9,028 thousand shares based on Companies Act Article 156 with Companies
Act 165 (3) and the acquisition of the fractional shares (4 thousands shares).
3. Stock acquisition rights(1) Stock acquisition rights as stock options
Detail ofstock acquisition rights

Type

The Company
Consolidated
subsidiaries

Class of shares-

Number of shares for stock acquisition rights(in thousands)
March 31,
March 31,
Increase
Decrease
2012
2011
-

Total

Millions ofyenMarch 31,
2012
98

-

782

-

880

(2) Stock acquisition rights other than aboveType

Detail ofstock acquisition rights

Consolidated
subsidiaries-

Class of shares

Number of shares for stock acquisition rights(in thousands)
March 31,
March 31,
Increase
Decrease
2012
2011

Total

Millions ofyenMarch 31,
2012

-

18

-

18

4. Dividends(1) Dividend paid
Resolution
Ordinary general meeting ofshareholders, June 24, 2011

Class of shares

Amount of dividend

Dividend(Millions of yen)

per share

Common stocks

5,411

¥5.00

Record date

Effective date

March 31, 2011

June 27, 2011

(2) Dividends which recorded date is in the fiscal year ended March 31, 2012 and effective date for payment is in the fiscal
year ending March 31, 2013
Resolution

Class ofAmount of dividend

Source ofDividend

shares(Millions of yen)

dividend

per share

Ordinary general meeting ofCommonshareholders, June 22, 2012

stocks43,94041

Retainedearnings¥40.0

Record date

Effective date

March 31, 2012

June 25, 2012

SOFTBANK CORP. CONSOLIDATED FINANCIAL REPORTFor the fiscal year ended March 31, 2012

(Consolidated Statements of Cash Flows)
1. Reconciliation of cash and cash equivalents to the amounts presented in the accompanying consolidated balance sheets
As of March 31, 2011
million yen

As of March 31, 2012

Cash and deposits

861,657

Marketable securities

78,0994,575Time deposits with original maturity over three months(14,832)(2,473)

Stocks and bonds with original maturity over three months(77,769)(3,794)

Cash and cash equivalents

847,155

million yen

1,016,251 million yen

1,014,558 million yen

2. Scope of Purchase of property and equipment, and intangibles in the consolidated statements of cash flows(For the fiscal year ended March 31, 2011 and for the fiscal year ended March 31, 2012)“Purchase of property and equipment, and intangibles” are comprised of cash outflows from purchasing property and equipment,
and intangible assets (excluding goodwill) and long-term prepaid expenses.
3.

Proceeds from sale of marketable and investment securities and Repayment of long-term debt
(For the fiscal year ended March 31, 2012)
As described in “3. Gain on sale of investment securities under (Consolidated Statements of Income),” the shares of Yahoo! Inc.
held by the Company's U.S. subsidiary were delivered to CITIBANK, N.A. in connection with the settlement of the obligation
under the forward contracts (“collar transaction”). The cash receipts of ¥57,191 million ($743 million) equaled the fair value ofthe shares delivered and were recorded as “Proceeds from sale of marketable and investment securities.” The proceeds receivedof ¥57,191 million were then remitted to repay the obligation and recorded as “Repayment of long-term debt.”
The difference between the obligation balance of $1,135 million at maturity and the $743 million of proceeds from delivering theshares of Yahoo! Inc. that were remitted to CITIBANK, N.A. in full settlement of the obligation was recognized as a realized gainon the forward contracts. Therefore, the balance of the obligation after deduction of the realized gain on the forward contracts,
which was equal to the fair value of Yahoo! Inc. shares, was recorded under “Repayment of long-term debt.”

4.

Proceeds from advanced redemption of debt security(For the fiscal year ended March 31, 2012)
In January 2010, the Company acquired corporate bonds issued by J-WBS Funding K.K. to provide part of the funding for the
SBM loan under the whole business securitization scheme associated with the acquisition of Vodafone K.K. (currently
SOFTBANK MOBILE) and recorded the corporate bonds as “Investment securities” on the consolidated balance sheet. These areproceeds from the advanced redemption of the corporate bonds, accompanying the repayment of the entire SBM loan in October
2011.

5.

Proceeds from issuance of preferred securities by a subsidiary(For the fiscal year ended March 31, 2012)
They are proceeds from the issuance of preferred securities with limited voting right (preferred securities which have the nature ofa stock prescribed in Financial Instruments and Exchange Act Article 2 (1) (ix), which is a part of securities described in Financial
Instruments and Exchange Act Article 2 (1) (xvii)) to investors through publicly offering in Japan by the Company’s consolidated
subsidiary, SFJ Capital Limited.

6. Proceeds from sale and lease back of equipment newly acquired(For the fiscal year ended March 31, 2011, and for the fiscal year ended March 31, 2012)
Once SOFTBANK MOBILE and others purchase telecommunications equipment for the purpose of assembly, installation andinspection, SOFTBANK MOBILE and others sell the equipment to lease companies for sale and lease back purposes. The
leased asset and lease obligation are recorded in the consolidated balance sheets.
The cash outflows from the purchase of the equipment from vendors are included in “Purchase of property and equipment, andintangibles” and the cash inflows from the sale of the equipment to lease companies are included in “Proceeds from sale andlease back of equipment newly acquired.”42

SOFTBANK CORP. CONSOLIDATED FINANCIAL REPORTFor the fiscal year ended March 31, 2012

7. Payments for repurchase of minority interests and long-term debt
(For the fiscal year ended March 31, 2011)
The Company acquired all class 1 preferred stock-series 1, stock acquisition rights issued by BB Mobile Corp. to Vodafone
International Holdings B.V. and all principal and accrued interest of a long-term loan receivable, which was recorded as“Long-term debt” in the Company’s consolidated balance sheets, from SOFTBANK MOBILE Corp. to Vodafone Overseas
Finance Limited for the total amount of ¥412,500 million during the fiscal year ended March 31, 2011. Of the total amount of
the acquisition, the amount paid during the fiscal year ended March 31, 2011 amounting to ¥212,500 million, together withrelated expenses associated with the acquisition were recorded as “Payments for repurchase of minority interest and long-tem
debt.” The remaining amount of ¥200,000 million is scheduled to be paid in April 2012.
8.

Non-cash investing and financing transaction
For the fiscal year ended
March 31, 2011
51,347
million yen

Acquisitions of fixed assets by installments

For the fiscal year ended
March 31, 2012
11,717 million yen

Increase of common stock by the exercise of stock acquisition rights*-

25,022

Increase of additional paid-in capital by the exercise of stock acquisition rights*-

24,979Decrease of stock acquisition rights by the exercise of stock acquisition rights*-

50,002*Due to the exercise of stock acquisition rights on convertible bond due 2013 and convertible bond due 2014

43

SOFTBANK CORP. CONSOLIDATED FINANCIAL REPORTFor the fiscal year ended March 31, 2012

(Leases)
1. Finance lease transactions(As a lessee)(1) Finance leases in which the ownership of leased assets is transferred to lessees at the end of the lease periods[1] Details of lease assets are as follows:
Tangible assets, mainly telecommunications equipment in the Mobile Communications segment.
[2] Depreciation method for lease assets
The depreciation method is the same as the method used for fixed assets possessed by each subsidiary and the Company.
(2) Finance leases in which the ownership of leased assets is not transferred to lessees at the end of the lease period[1] Details of lease assets are as follows:
Tangible assets, mainly telecommunications equipment in the Fixed-line Telecommunications segment.
[2] Depreciation method for lease assets
The straight-line method is adopted over the period of the finance leases, assuming no residual value.
Lease transactions contracted before April 1, 2008 are continuously permitted to be accounted for as operating lease transactions,and as if capitalized information is as follows:(1) Amounts equivalent to acquisition costs, accumulated depreciation, and accumulated impairment loss of leased property for eachyear:
As of March 31, 2011

As of March 31, 2012

Telecommunications equipment andtelecommunications service lines
Acquisition cost
Accumulated depreciation

124,132(73,353)

61,165(37,468)

Accumulated impairment loss

(24,743)(10,176)

Net leased property
Buildings and structures
Acquisition cost
Accumulated depreciation
Accumulated impairment loss

26,035

million yen

46,715(14,238)-

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

32,477

2,134

192,518(105,455)(25,992)

Net leased property

61,0698,597(8,004)
(171)
421

44

million yen

46,700(16,564)
million yen

13,072(9,859)(1,078)Net leased property
Intangible assets
Acquisition cost
Accumulated depreciation
Accumulated impairment loss
Net leased property
Total
Acquisition cost
Accumulated depreciation
Accumulated impairment loss

13,51930,135

million yen

5,203(3,131)(1,013)
million yen

1,058

million yen

million yen

427
(233)
(171)
23

million yen

113,496(57,398)(11,361)
million yen

44,736

million yen

SOFTBANK CORP. CONSOLIDATED FINANCIAL REPORTFor the fiscal year ended March 31, 2012

Current portion of long-term prepaid expenses related to a lease contract, in which the contract term and payment term are
different, in the amount of ¥583 million and ¥492 million as of March 31, 2011 and March 31, 2012 respectively areincluded in “Other current assets” in the consolidated balance sheets. Long-term prepaid expenses relating to the lease
contract as of March 31, 2011 and March 31, 2012 were ¥26,073 million and ¥22,863 million, respectively and areincluded in “Other assets” of investments and other assets in the consolidated balance sheets.
(2) Obligations under finance lease at the end of each year:
As of March 31, 2011

Due within one year
Due after one year

15,67862,845
Total

Balance of allowance for impairment loss on
leased property

As of March 31, 2012

8,378
54,40478,523

million yen

62,782

million yen

4,530

million yen

2,579

million yen(3) Lease payments, payment of the lease obligation for impaired leased property, amounts equivalent to depreciation, andinterest expense for each year:
Fiscal year ended

Fiscal year ended

March 31, 2011

30,830

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

March 31, 2012

million yen

20,513 million yen

6,246

1,950

20,9896,735

12,9664,831(4) Calculation method used to determine the amount equivalent to depreciation and interest expense:
The amount equivalent to depreciation is computed using the straight-line method over the period of the finance leases,
assuming no residual value.
The amount equivalent to interest expense is calculated by subtracting acquisition costs from the total lease payments
and allocated over the lease periods based on the interest method.
Regarding the lease contract of the Fukuoka Yahoo! JAPAN Dome (hereafter “Yahoo Dome”) included in the above notes,
Fukuoka SOFTBANK HAWKS Marketing Corp. entered into sales and purchase contract on March 27, 2012 to acquire atrust beneficiary interest related to Yahoo Dome in July of 2015. As financial statement as of the end of February, the fiscal
year end of this company, is reflected in the consolidated financial statements, this transaction will be recognized next fiscal
year.
Based on this contract, the lease is newly classified and buildings and structures (acquisition cost: ¥38,280 million) and land
(acquisition cost: ¥49,360 million) will be recorded in the consolidated financial statements for the fiscal year ending March
31, 2013.

45

SOFTBANK CORP. CONSOLIDATED FINANCIAL REPORTFor the fiscal year ended March 31, 2012

(Financial Instruments)
1. Conditions of Financial instruments(1) Management policy
The Group utilizes diversified financing methods of raising funds through both indirect financing, such as bank loans, anddirect financing, such as issuance of bonds and commercial paper and borrowings through securitization, taking market
conditions and current/non-current debts ratio into consideration. The Group makes short-term deposits for fund management
purposes. The Group also utilizes derivative financial instruments to hedge various risks as described in detail below and does
not enter into derivatives for trading or speculative purposes.
(2) Financial instruments, risks, and risk management
The notes and accounts receivable-trade are exposed to credit risk of customers. To minimize the credit risk, the Group
performs due date controls and balance controls for each customer in accordance with internal customer credit management
rules, and regularly screens major customers’ credit status. For credit risk associated with installment sales receivables ofmobile handsets, SOFTBANK MOBILE screens customers’ credit in accordance with internal screening standards for new
subscriber contracts as well as refers to an external institution for customers' credit status.
Marketable and investment securities are exposed to stock market fluctuation risk and foreign currency exchange risk. For
those risks, the Group is continuously monitoring investees’ financial condition, stock market fluctuation, and foreign currency
exchange risk. The Group entered into a variable share prepaid forward contract (collar transaction) utilizing its shares ofYahoo! Inc. The purpose of this collar transaction was to hedge the variability of cash flows associated with the future market
price of the underlying security, which was for the settlement of loans at their maturity. During the fiscal year ended March
31, 2012, the collar transaction was settled as the obligation under the forward contracts was settled at maturity by effectively
delivering the shares of Yahoo! Inc.
Maturities of accounts payable-trade and accounts payable-other are mostly within one year. Loan payables with variableinterest rate are exposed to interest rate risk and interest rate swaps are used for certain loan payables in order to hedge this risk.
In order to hedge interest rate risk associated with financial assets and liabilities, and foreign currency exchange risk associatedwith assets and liabilities denominated in foreign currencies, interest rate swap transactions and foreign exchange forward
contracts are used. The collar transaction, which was used to hedge the variability of cash flows associated with the future
market price of the underlying security, was settled during the fiscal year ended March, 31, 2012.
Hedge accounting is applied for certain derivative transactions. Hedging instruments and hedged items, hedging policy, andeffectiveness of hedge transactions are described in “(6) Basis of Presentation of Consolidated Financial Statements 4.
Summary of significant accounting policies (5) Accounting for significant hedge transactions.” Derivative transactions
entered into by the Company are implemented and controlled based on the Company’s internal polices and are limited to theextent of actual demand. Balance and fair value of derivative transactions are reported regularly to the board of directors.
Consolidated subsidiaries also manage the derivative transactions based on the Company’s policies.
(3) Supplemental explanation regarding fair value of financial instruments
Fair values of financial instruments are measured based on the quoted market price, if available, or reasonably assessed value if
a quoted market price is not available. Fair value of financial instruments which quoted market price is not available iscalculated based on certain assumptions, and the fair value might differ if different assumptions are used. In addition, thecontract amount of the derivative transactions described below in “(8) Notes (Derivative Transactions)” does not represent themarket risk of the derivative transactions.

46

SOFTBANK CORP. CONSOLIDATED FINANCIAL REPORTFor the fiscal year ended March 31, 2012

2. Fair value of financial instruments
The carrying amounts on the consolidated balance sheets, fair value, and differences as of March 31, 2011 are as follows.
In addition, financial instruments, of which it is extremely difficult to measure the fair value, are not included. (Please see “Notes 2.
Financial instruments of which the fair value is extremely difficult to measure.”)As of March 31, 2011
(Millions of yen)

As of March 31, 2011
Carrying amount

Fair value

Differences

Assets(1) Cash and deposit¥861,657(2) Notes and accounts receivable-trade657,774¥861,657¥-

Allowance for doubtful accounts1(36,063)

Notes and accounts receivable-trade, net

621,710

621,710-[1]Held-to-maturity debt securities

1,587

1,487

(100)

Investments in unconsolidated subsidiaries[2] and affiliated companies

15,93730,947

15,009[3]Other securities

160,025

160,025-

1,660,919

1,675,827

14,908(1) Accounts payable-trade193,644

193,644-(2) Short-term borrowings

410,950

410,950-(3) Current portion of corporate bonds

128,500

128,500-(4) Accounts payable-other and accrued expenses

561,421561,421-(5) Income taxes payable

115,355

115,355-(6) Current portion of lease obligations

131,305

131,305-(7) Corporate bonds

507,390

584,477

77,087(8) Long-term debt

1,030,959

1,102,328

71,368(9) Lease obligations

199,769

203,1133,343(10) Commercial paper

25,00025,000-(11) Long-term accounts payable-other265,141

265,085(56)

3,569,439

3,721,182

151,742(3) Marketable securities and investment securities

Total
Liabilities

Total
Derivative transactions

2[1]Hedge accounting is not applied

(216)

(216)

-

[2]Hedge accounting is applied

20,856

20,856-

Total¥ 20,640¥ 20,640¥-

Notes:
1. Allowance for doubtful accounts associated with notes and accounts receivable-trade are deducted.
2. Derivative assets and liabilities are on net basis. Net liabilities are disclosed in brackets.

47

SOFTBANK CORP. CONSOLIDATED FINANCIAL REPORTFor the fiscal year ended March 31, 2012

As of March 31, 2012
(Millions of yen)

As of March 31, 2012
Carrying amount

Fair value

Differences

Assets(1) Cash and deposit¥1,016,251¥1,016,251¥-(2) Notes and accounts receivable-trade661,287

Allowance for doubtful accounts1(36,882)

Notes and accounts receivable-trade, net

624,405

624,405

-

691

580

(110)

60,59982,041

21,442(3) Marketable securities and investment securities[1]Held-to-maturity debt securities
Investments in unconsolidated subsidiaries[2] and affiliated companies[3]Other securities

83,123

83,123-

1,785,071

1,806,402

21,331(1) Accounts payable-trade190,532

190,532-(2) Short-term borrowings

403,167

403,167-(3) Current portion of corporate bonds

144,988

144,988-(4) Accounts payable-other and accrued expenses

835,053

835,053-(5) Income taxes payable

125,116

125,116-(6) Current portion of lease obligations

152,682

152,682-(7) Corporate bonds

459,900

466,836

6,936(8) Long-term debt

560,070

568,472

8,402(9) Lease obligations

347,699

351,8314,132

3,219,210

3,238,681

19,470[1]Hedge accounting is not applied

1,683

1,683

-

[2]Hedge accounting is applied

(993)

(993)

-

Total

¥ 689

¥ 689

¥-

Total
Liabilities

Total
Derivative transactions

2

Notes:
1. Allowance for doubtful accounts associated with notes and accounts receivable-trade are deducted.
2. Derivative assets and liabilities are on net basis. Net liabilities are disclosed in brackets.
Notes 1. Fair value measurement of financial instruments
Assets(1) Cash and deposits
The carrying amount approximates fair value because of the short maturity of these instruments.
(2) Notes and accounts receivable-trade
The carrying amount of installment sales receivables approximates fair value, which is based on the present value of future
cash flows through maturity discounted using an estimated credit-risk-adjusted interest rate. The carrying amount of notes
and accounts receivable-trade other than installment sales receivables approximates fair value because of the short maturityof these instruments.

48

SOFTBANK CORP. CONSOLIDATED FINANCIAL REPORTFor the fiscal year ended March 31, 2012(3) Marketable and investment securities
The fair value of equity securities equals quoted market price, if available. The fair value of debt securities equals quoted
market price or provided price by financial institutions. The investment securities held by certain subsidiaries in the UnitedStates of America which apply ASC 946 are carried at fair value (Please see “(8) Notes (Investment in Debt and Equity
Securities) 5. Investment securities evaluated at fair value under the provisions set forth in Financial Services – Investment
Companies of the FASB Accounting Standards Codification”). Marketable and investment securities based on holding
purpose are described in “(8) Notes (Investment in Debt and Equity Securities).”Liabilities(1) Accounts payable-trade, (4) Accounts payable-other and accrued expenses, (5) Income taxes payable, and (10) Commercial
paper
The carrying amount approximates fair value because of the short maturity of these instruments.
(2) Short-term borrowings
The carrying amount of the current portion of long-term debt approximates fair value since the carrying amount was
equivalent to the present value of future cash flows discounted using the current borrowing rate for similar debt of acomparable maturity. Borrowings other than the current portion of long-term debt, the carrying amount approximates fairvalue because of the short maturity of these instruments.
(3) Current portion of corporate bonds
The carrying amount approximates fair value because the carrying amount was equivalent to the quoted market price.
(6) Current portion of lease obligations
The carrying amount approximates fair value since the carrying amount was equivalent to the present value of future cash
flows discounted using the current interest rate for similar lease contracts of comparable maturities and contract conditions.
(7) Corporate bonds
Fair value equals the quoted market price or the price provided by a financial institution.
(8) Long-term debt
Fair value of long-term debts is based on the price provided by a financial institution or the present value of future cash flows
discounted using the current borrowing rate for similar debt of a comparable maturity.
(9) Lease obligations
Fair value equals to the present value of future cash flows discounted using the current interest rate for similar lease contractsof comparable maturities and contract conditions.
(11) Long-term accounts payable - other
Fair value of long-tem accounts payable-other is based on the present value of future cash flows discounted using the ratewith consideration for period up to payment date and credit risk.

Derivative Transactions
Contract amount, fair value, unrealized gain or loss, and others are described in “(8) Notes (Derivative Transactions).”49

SOFTBANK CORP. CONSOLIDATED FINANCIAL REPORTFor the fiscal year ended March 31, 2012

Notes 2. Financial instruments of which the fair value is extremely difficult to measure(Millions of yen)

Carrying Amounts
Classification

As of March 31, 2011

Unlisted investment securities of unconsolidated subsidiaries
and affiliated companies¥176,108¥148,884

55,29742,805

Unlisted equity securities
Investments in partnerships
Total

As of March 31, 2012

9,579

6,666

¥240,985¥198,357

Above are not included in “Assets (3) Marketable securities and investment securities” because there is no market value and it
is extremely difficult to measure the fair value.
Notes 3. The redemption schedule for money claim and held-to-maturity debt securities with maturity date subsequent tothe consolidated balance sheets date.
As of March 31, 2011
(Millions of yen)

April 1, 2011 toApril 1, 2012 toApril 1, 2016 toApril 1, 2021

March 31, 2012

March 31, 2016

March 31, 2021

and thereafter

Cash and deposits¥861,657

¥-

¥-

¥-

Notes and accounts receivable-trade566,564

91,210

-

-

1,100

-

-

600

117
-

400
109

27,200
-

-

1,217

509

27,200600¥1,429,438¥91,719¥27,200¥600

Classification

Marketable and investment securities
Held-to-maturity debt securities(corporate bonds)
Other securities with maturity date
(corporate bonds)
Other securities with maturity date (other)
Sub-total
Total

As of March 31, 2012
(Millions of yen)Classification
Cash and deposits
Notes and accounts receivable-trade

April 1, 2012 toApril 1, 2013 toApril 1, 2017 toApril 1, 2022

March 31, 2013

March 31, 2017

March 31, 2022

and thereafter¥1,016,251

¥-

¥-

¥-

587,958

73,328

-

-

200

-

-

600

630
400

200
101

200
-

-

Marketable and investment securities
Held-to-maturity debt securities(corporate bonds)
Other securities with maturity date
(corporate bonds)
Other securities with maturity date (other)
Sub-total
Total

1,230

301

200

600

¥1,605,440¥73,630

¥200

¥600

50

SOFTBANK CORP. CONSOLIDATED FINANCIAL REPORTFor the fiscal year ended March 31, 2012

Notes 4. The redemption schedule for corporate bonds, long-term debt, lease obligations, and other interest bearing debt
subsequent to the consolidated balance sheets date.
As of March 31, 2011
(Millions of yen)

April 1, 2011 toApril 1, 2012 toApril 1, 2013 toApril 1, 2014 toMarch 31, 2012

March 31, 2013

March 31, 2014

March 31, 2015

¥128,500¥144,998¥204,992¥44,900

Long-term debt

182,694

124,100

268,825

232,581

Lease obligations
Accounts payable – other by installment
purchase
Total

131,305

85,32555,59940,9199,906

13,921

13,921

13,921¥452,407¥368,345¥543,338¥332,322

April 1, 2015 toApril 1, 2016 toApril 1, 2021

March 31, 2016

March 31, 2021

and thereafter

Corporate bonds¥70,000¥42,500¥-

Long-term debt

230,000

175,452-

Lease obligations
Accounts payable – other by installment
purchase
Total

17,861

63-

13,921

7,401-¥331,782¥225,417¥-

Classification
Corporate bonds

Classification

As of March 31, 2012
(Millions of yen)

April 1, 2012 toApril 1, 2013 toApril 1, 2014 toApril 1, 2015 toMarch 31, 2013

March 31, 2014

March 31, 2015

March 31, 2016

¥144,988¥205,000¥74,900¥70,000

Long-term debt

299,209359,290

200,310

72

Lease obligations

152,682

120,372

101,289

80,644¥596,880¥684,663¥376,500¥150,716

April 1, 2016 toApril 1, 2017 toApril 1, 2022

March 31, 2017

March 31, 2022

and thereafter

Corporate bonds¥100,000¥10,000¥-

Long-term debt

388

7

-

Lease obligations

45,3893-¥145,778¥10,011¥-Classification
Corporate bonds

Total

Classification

Total

51

SOFTBANK CORP. CONSOLIDATED FINANCIAL REPORTFor the fiscal year ended March 31, 2012

(Investment in Debt and Equity Securities)
1. Held-to-maturity debt securities
As of March 31, 2011
(Millions of yen)Classification

Carrying amount

Fair value

Differences

Fair value > Carrying amountCorporate bonds

¥197

¥199

¥1

Corporate bonds

1,390

1,288

(102)

Total

¥1,587¥1,487¥(100)

Fair value≦Carrying amount

As of March 31, 2012.

(Millions of yen)Classification

Carrying amount

Fair value

Differences

Fair value≦Carrying amountCorporate bonds

¥691

¥580

¥ (110)2. Marketable and investment securities at fair value
As of March 31, 2011
(Millions of yen)Classification

Carrying amount

Investment Cost

Differences(1)Equity securities¥92,582¥19,151¥73,430(2)Debt securities

31,06026,587

4,473

Carrying amount > Investment cost(3)Others

2,390

2,298

91

126,033

48,03877,995(1)Equity securities

20,18527,667(7,481)(2)Debt securities

693

702

(9)

Sub-total
Carrying amount≦Investment cost(3)Others
Sub-total
Total

632

636

(4)

21,51029,005(7,494)¥147,544¥77,043¥70,500

Note: Investment securities held by certain subsidiaries in the United States of America which apply ASC 946 are described in
below “5. Investment securities evaluated at fair value under the provisions set forth in Financial Services– Investment
Companies of the FASB Accounting Standards Codification.”52

SOFTBANK CORP. CONSOLIDATED FINANCIAL REPORTFor the fiscal year ended March 31, 2012

As of March 31, 2012
(Millions of yen)Classification

Carrying amount

Investment Cost

Differences(1)Equity securities¥58,168¥35,012¥23,155(2)Debt securities

502

498

3

(3)Others

373

373

0

59,04435,884

23,159

6,278

8,931

(2,652)Carrying amount > Investment cost

Sub-total
Carrying amount≦Investment cost
(1)Equity securities(2)Debt securities

730

759

(28)

(3)Others

3,211

3,293

(81)

Sub-total

10,22012,983(2,762)

Total¥69,264¥48,867¥20,396

Note: Investment securities held by certain subsidiaries in the United States of America which apply ASC 946 are described in
below “5. Investment securities evaluated at fair value under the provisions set forth in Financial Services– Investment
Companies of the FASB Accounting Standards Codification.”

3. Marketable and investment securities sold during the fiscal year
During the fiscal year ended March 31, 2011
(Millions of yen)

Securities

Sales Price(1)Equity securities(2)Others
Total

Gain on sales

Loss on sales¥13,650¥1,971

¥598

3,767

105

1

¥17,418¥2,076¥600

Note: Sales price of ¥371 million, gain on sales of ¥173 million, and loss on sales of ¥123 million for financial instruments ofwhich the fair value is extremely difficult to measure are included in the amounts above.
During the fiscal year ended March 31, 2012
(Millions of yen)

Securities

Sales Price(1)Equity securities(2)Others
Total

Gain on sales

Loss on sales¥76,696¥87,007

¥45

2,459

52

83

¥79,155¥87,060¥129

Note: Sales price of ¥12,415 million, gain on sales of ¥8,454 million, and loss on sales of ¥19 million for financial instruments ofwhich the fair value is extremely difficult to measure are included in the amounts above.
4. Marketable and investment securities impaired
For the fiscal year ended March 31, 2011
Certain marketable and investment securities are impaired, and valuation loss on investment securities of ¥8,739 million(valuation loss on investment securities, of which the fair value is extremely difficult to measure, of ¥6,168 million is included)
is recorded for the fiscal year ended March 31, 2011.
For the fiscal year ended March 31, 2012
Certain marketable and investment securities are impaired, and valuation loss on investment securities of ¥13,971 million(valuation loss on investment securities, of which the fair value is extremely difficult to measure, of ¥5,291 million is included)
is recorded for the fiscal year ended March 31, 2012.

53

SOFTBANK CORP. CONSOLIDATED FINANCIAL REPORTFor the fiscal year ended March 31, 2012

5. Investment securities evaluated at fair value under the provisions set forth in Financial Services – Investment Companiesof the FASB Accounting Standards Codification
Certain subsidiaries of the Company in the United States of America qualify as investment companies under the provisions set
forth in Financial Services – Investment Companies of the FASB ASC 946 and account for investment securities in accordancewith ASC 946.
Proceeds from sales and the carrying amounts of the investment securities at fair value recorded in the consolidated balance
sheets were as follows:(Millions of yen)

As of March 31, 2011
¥1,550¥12,480

Proceeds from sales:
Carrying amounts of investment securities at fair value :As of March 31, 2012
¥507
¥13,860

Regarding “Unrealized appreciation on valuation of investments and loss on sale of investments at subsidiaries in the U.S., net”
please see “(8) Notes (Consolidated Statements of Income) 4. Unrealized appreciation on valuation of investments and loss onsale of investments at subsidiaries in the United States of America, net.”(Derivative Transactions)(1) Derivative transactions to which the Company did not apply hedge accounting
1. Currency Related
As of March 31, 2011
(Millions of yen)March 31, 2011
Nature of transaction

Contract amounts
Over 1 year

Fair

Unrealizedvalue

gain(loss)

Forward exchange contracts to:
Off-market
transactions– Purchase U.S. dollars and sell Japanese yen¥52,791¥-¥(217)¥(217)– Purchase U.S. dollars and sell Korean won

353

-

1

1

¥53,144¥-¥(216)¥(216)

Total

Note: Fair value is based on information provided by financial institutions at the end of the fiscal year.
As of March 31, 2012
(Millions of yen)March 31, 2012
Nature of transaction

Contract amounts
Over 1 year

Fair

Unrealizedvalue

gain(loss)

Forward exchange contracts to:
Off-market– Purchase U.S. dollars and sell Japanese yen¥53,099¥-¥1,683¥1,683transactions– Purchase U.S. dollars and sell Korean won– Purchase Euro and sell Japanese yen

480

-

(0)

(0)

18

-

(0)

(0)

¥53,599¥-¥1,683¥1,683Total

Note: Fair value is based on information provided by financial institutions at the end of the fiscal year.

54

SOFTBANK CORP. CONSOLIDATED FINANCIAL REPORTFor the fiscal year ended March 31, 2012

2. Interest Related
As of March 31, 2011
There are no applicable items.
As of March 31, 2012
There are no applicable items.
3. Securities Related
As of March 31, 2011
There are no applicable items.
As of March 31, 2012
There are no applicable items.
(2) Derivative transactions to which the Company applied hedge accounting
1. Currency Related
As of March 31, 2011
(Millions of yen)

Hedge accounting
methodNature of transaction

Hedged items

Contract amount

Fair valueOver 1 year

Forward-exchange contracts:
to buy:Deferral hedge

Forecasted transactions for
expenses denominated inforeign currencies
Forecasted transactions for
expenses denominated inforeign currencies

U.S. dollars

accounting
Euro
Total

¥205

¥-

¥(3)

1,181

-

(1)

¥1,387¥-¥(5)

Note: Fair value is based on information provided by financial institutions at the end of the fiscal year.
As of March 31, 2012
(Millions of yen)

Hedge accounting
methodNature of transaction

Hedged items

Contract amount

Fair valueOver 1 year

Forward-exchange contracts:
to buy:Accounts payable otherAccounts payable trade

U.S. dollars
Alternative method

Euro

¥148

¥-

¥-

1,020

-

--

86

-

-

¥1,254¥-¥-

Forward-exchange contracts:
to sell:

Accounts receivable trade

U.S. dollars
Total

Note: For certain accounts payable-other, accounts payable-trade, and accounts receivable-trade denominated in foreign
currencies for which foreign exchange forward contracts are used to hedge the foreign currency fluctuations, fair value of thederivative financial instrument is included in fair value of the accounts payable-other, accounts payable-trade, and accounts
receivable - trade as hedged items.

55

SOFTBANK CORP. CONSOLIDATED FINANCIAL REPORTFor the fiscal year ended March 31, 2012

2. Interest Related
As of March 31, 2011
(Millions of yen)

Hedge accounting
methodDeferral hedge
accounting

Nature of transaction

Hedged items

Contract amount

Fair valueOver 1 year

Interest swap:
Receiving floating rate
and paying fix rate

Interest for loan

Total¥104,000¥99,000¥(1,418)¥104,000¥99,000¥(1,418)

Note: Fair value is based on information provided by financial institutions at the end of the fiscal year.
As of March 31, 2012
(Millions of yen)

Hedge accounting
methodDeferral hedge
accounting

Nature of transaction

Hedged items

Contract amount

Fair valueOver 1 year

Interest swap:
Receiving floating rate
and paying fix rate

Interest for loan

Total

¥99,000¥84,000¥(993)¥99,000¥84,000¥(993)

Note: Fair value is based on information provided by financial institutions at the end of the fiscal year.
3. Securities Related
As of March 31, 2011
(Millions of yen)

Hedge accounting
methodNature of transaction

Hedged items

Contract amount

Fair valueOver 1 year

Collar transaction:
Deferral hedge
accounting

A variable share prepaid
forward contract
consisting of a purchased
put option and a sold call
optionMarketable securities

Total¥94,461¥-¥22,280¥94,461¥-¥22,280

Note: Fair value is based on information provided by financial institutions at the end of the fiscal year.

56

SOFTBANK CORP. CONSOLIDATED FINANCIAL REPORTFor the fiscal year ended March 31, 2012

(Income Taxes)
1. Significant components of deferred tax assets and liabilities
Deferred tax Assets
Amounts
As of March 31, 2011

As of March 31, 2012

Depreciation / Amortization¥64,682¥49,458

Loss carryforwards

79,17243,553

43,56030,280Investment securities

48,45019,975

Allowances for doubtful accounts

19,903

12,297

Allowances for point mileage

17,06812,191

Accounts payable-other and accrued expenses

31,52010,774

Valuation of assets and liabilities of acquired consolidated subsidiaries
at fair market value

64,27568,967Gross deferred tax assets

Others368,633

247,500

Less: valuation allowance(141,498)(79,412)

Total deferred tax assets

227,135

168,087

Deferred tax liabilities
Amounts
As of March 31, 2011
Deferred taxable gain on a sale of shares of a subsidiary to a 100%
owned subsidiary under Japanese group taxation regime
Unrealized gains on other securities

As of March 31, 2012(13,294)(11,644)(27,844)(4,941)

Deferred gain on derivatives under hedge accounting(7,642)-Others(11,987)(11,075)

Total deferred tax liabilities(60,768)(27,661)

Net deferred tax assets¥166,366¥140,426

2. Reconciliation between the statutory income tax rate and effective income tax rate:
For the fiscal year ended
March 31, 2011
Statutory tax rate

40.69

For the fiscal year ended
March 31, 201240.69 %

(Reconciliation)
Change in valuation allowance(5.05)(5.81)

Amortization of goodwill

5.09

3.84

-

1.97

-

(1.27)

5.70

-

4.18

-

Others(2.14)

0.87

Income tax rate per statements of income

48.47

40.29%

Decrease of deferred tax assets・liabilities
at fiscal year-end by the change of tax rate
Dilution gain from changes in equity interest
Income taxes correction
Consolidation adjustments resulting from gain on sale of investments inconsolidated subsidiaries

57

SOFTBANK CORP. CONSOLIDATED FINANCIAL REPORTFor the fiscal year ended March 31, 2012

3. Change of deferred tax assets and deferred tax liability by the change of effective statutory tax rate
“Act on the Partial Revision of the Income Tax Act for the Establishment of a Taxation System Responding to Structural
Transformation of Economy and Society” and “Act on Special Measures for Securing Financial Resources Needed to Implement
Measures to Recover From the Great East Japan Earthquake” were issued on December 2, 2011. By these acts, the effective
statutory tax rate, which is used to calculate deferred tax assets and liability for this year was changed from 40.69%, which was used
as of March 31, 2011. The new effective tax rate will be as follows, depending when the temporary difference will reverse.
From April 1, 2012 to March 31, 2015: 38.01%
On and after April 1, 2015: 35.64%
By this change, deferred tax assets net of deferred liability decreased by ¥11,875 million, Deferred income taxes increased by¥12,452 million and Unrealized gain on available-for-sale securities increased by ¥577 million respectively.

58

SOFTBANK CORP. CONSOLIDATED FINANCIAL REPORTFor the fiscal year ended March 31, 2012

(Segment Information)
1. Segment information(1) Overview of reportable segments
Reportable segments of the Company are components of an entity about which separate financial information is available and suchinformation is evaluated regularly by the board of directors in deciding how to allocate resources and in assessing performance.
The Company as a pure holding company assigns core operating companies to primary businesses. The core operating companies
develop comprehensive business strategies for the products and services and perform business activities.
Accordingly, the Company’s segments are separated based on the products and services provided by the core operating companies, and 4
segments, “Mobile Communications,” “Broadband Infrastructure,” “Fixed-line Telecommunications,” and “Internet Culture” are treated asreportable segments.
“Mobile Communications” business provides mobile communication services and sale of mobile phones accompanying the services.
“Broadband Infrastructure” business provides high-speed Internet connection service, IP telephony service, and contents. “Fixed-line
Telecommunications” business provides fixed-line telecommunication services. “Internet Culture” business provides Internet-based
advertising operations, e-commerce site operations, such as Yahoo! Auctions and Yahoo! Shopping, and membership services, etc.
(2) Calculation for net sales, segment income or loss, and others of reportable segments
Accounting treatment for reportable segments is the same as the treatment described in “Basis of Presentation of Consolidated Financial
Statements.” Income of reportable segments is based on operating income. Internal net sales between segments are under generalbusiness conditions, which are applied for external customers. Assets are not allocated between the reportable segments.
(3) Net sales, segment income or loss, and others of reportable segments
For the fiscal year ended March 31, 2011

(Millions of yen)
Reportable segments

Reconciliations to
Other

MobileBroadband

Fixed-line

1

Amounts in consolidated

Total

consolidated statement

Internetof income 2

Subtotalstatement of income 3

Communications

Infrastructure

Telecommunications

Culture¥1,936,093¥183,070¥297,090¥279,232¥2,695,486¥309,153¥3,004,640¥-¥3,004,640

8,458

6,984

59,471

4,382

79,29734,481

113,778(113,778)

-

Total

1,944,551

190,055

356,561

283,615

2,774,783

343,635

3,118,419(113,778)

3,004,640

Segment income

402,411

43,15438,006150,305

633,877

7,092

640,970(11,806)

629,163

Others:Depreciation
and amortization

156,993

15,84036,634

9,422

218,891

4,833

223,725

1,211

224,937

Net sales:
Customers
Inter-segment

Notes:
1. The PC software and peripherals distribution business and Fukuoka SOFTBANK HAWKS related business are included in “Other.”
2. Amounts in the column “Reconciliations to consolidated statement of income” of ¥(11,806) million represents elimination of intersegment
transactions and expenses of the corporate division of the Company, which totaled ¥57 million and ¥(11,864) million, respectively.
3. Segment income is adjusted with operating income in the consolidated statements of income.

59

SOFTBANK CORP. CONSOLIDATED FINANCIAL REPORTFor the fiscal year ended March 31, 2012

For the fiscal year ended March 31, 2012

(Millions of yen)
Reportable segments

Reconciliations to
Other

MobileBroadband

Fixed-line

Amounts in consolidated

1

Total

consolidated statement

statement of income 3Internetof income 2

SubtotalCommunications

Infrastructure

Telecommunications

Culture¥2,138,650¥155,389¥292,674¥290,004¥2,876,720¥325,715¥3,202,435¥-¥3,202,435

6,248

16,51574,971

3,630

101,365

35,282

136,647(136,647)

-

Total

2,144,899

171,904

367,645

293,635

2,978,085

360,998

3,339,083(136,647)

3,202,435

Segment income

429,236

34,327

57,950156,821678,336

8,800

687,136(11,853)

675,283

Others:Depreciation
and amortization

203,455

14,39539,80010,288267,9396,277

274,216

1,609

275,825

Net sales:
Customers
Inter-segment

Notes:
1. The PC software and peripherals distribution business and Fukuoka SOFTBANK HAWKS related business are included in “Other.”
2. Amounts in the column “Reconciliations to consolidated statement of income” of ¥(11,853) million represents elimination of intersegment
transactions and expenses of the corporate division of the Company, which totaled ¥1,821 million and ¥(13,674) million, respectively.
3. Segment income is adjusted with operating income in the consolidated statements of income.
2. Information on amortization of goodwill and balance of goodwill of reportable segments
Fiscal year ended March 31, 2011
(Millions of yen)
Reportable segments
Other 1
MobileBroadband

Fixed-line

Communications

Infrastructure

Telecommunications

Internet Culture

Eliminationor corporate

Total

Subtotal

Amortization of goodwill¥51,427¥1,560¥7,283¥1,817¥62,088¥599¥-¥62,688

Balance of goodwill

775,700

3,119

35,20321,515835,539

3,699-

839,238

Notes:
Negative goodwill, which occurred from a business combination before April 1, 2010, is offset by goodwill.
Fiscal year ended March 31, 2012
(Millions of yen)
Reportable segments
Other 1
MobileBroadband

Fixed-line

Communications

Infrastructure

Telecommunications

Internet Culture

Eliminationor corporate

Total

Subtotal

Amortization of goodwill¥51,427¥1,559¥7,283¥1,903¥62,174¥432¥-¥62,606

Balance of goodwill

724,272

1,559

27,92019,319773,072

7,170-

780,242

Notes:
Negative goodwill, which occurred from a business combination before April 1, 2010, is offset by goodwill.

60

SOFTBANK CORP. CONSOLIDATED FINANCIAL REPORTFor the fiscal year ended March 31, 2012

(Per Share Data)
Fiscal year ended

Fiscal year ended

March 31, 2011

March 31, 2012

Shareholders’ equity per share (yen)¥572.14¥852.69

Net income per share - primary (yen)175.28285.78Net income per share - diluted (yen)168.57278.75

Basic data for computation of the per share data
1. Net income (in millions of yen)
2. Net income allocated to common stock outstanding(in millions of yen)
3. Amounts not allocated to shareholders(in millions of yen)
4. Weighted average number of common stock outstanding
during each year (unit: shares)

Fiscal year ended

Fiscal year ended

March 31, 2011

March 31, 2012

189,712313,752

189,712313,752--

1,082,345,444

1,097,880,178

963

444

(87)

(136)

875

308

48,296,643

28,715,248

712

65,691

48,297,355

28,780,939

5. Adjustment for net income used to calculate net income per share– diluted (in millions of yen)
– Interest expense (net of tax)
– Adjustments for net income used to calculate diluted net income
per share in consolidated subsidiaries and affiliated companies– Total
6. Increase of common stock used to calculate net income per share– diluted (unit: shares)– Corporate bonds with stock acquisition rights– Stock acquisition rights– TotalStock acquisition rights
Stock acquisition rights
agreement on June 22, 2005,
agreement on June 22, 2005, inin accordance with special
accordance with special
resolution at general
resolution at generalshareholders’ meeting and July shareholders’meeting29, 2010 in accordance withresolution at board meeting

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

61

SOFTBANK CORP. CONSOLIDATED FINANCIAL REPORTFor the fiscal year ended March 31, 2012

(Significant Subsequent Events)
There are no applicable items.

62