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

SoftBank Corp.
Consolidated Financial Report
For the six-month period ended September 30, 2013 (IFRS)Tokyo, October 31, 2013

1.

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

OperatingincomeIncomebefore incometax

Net income

Net income
Total
attributable tocomprehensive
owners of theincomeparentAmountAmountAmountAmountNet sales
Amount

%

%

%

%

%

Amount%Six-month period ended¥2,598,612 72.7 ¥715,070 66.6 ¥606,267 55.3 ¥428,873 76.8 ¥394,916 84.1 ¥190,910 (16.3)
September 30, 2013
Six-month period ended¥1,504,644
September 30, 2012-

¥429,129-¥390,472-¥242,528-¥214,559-¥228,171-

Basic earnings per share Diluted earnings per share
(yen)
(yen)
Six-month period ended
September 30, 2013

¥331.40¥330.92

Six-month period ended
September 30, 2012

¥195.31¥192.03

(2) Financial Position(Millions of yen; amounts are rounded off to the nearest million yen.)

Total assets

Total equity

Equityattributable toowners of theparentAs of September 30, 2013¥15,604,540¥2,525,719¥1,750,898

11.2

As of March 31, 2013

¥7,216,809¥1,930,428¥1,612,756

22.3

2.

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

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

Dividends per share
Second quarter
Third quarter
Fourth quarter

First quarter

Total(yen)(yen)(yen)(yen)(yen)

-

20.00

-

20.00

40.00

-

20.00
-

20.00

40.00

Note: Revision of forecasts on the dividends: No

3. Forecasts on the Consolidated Operations Results for the Fiscal Year Ending in March 2014 (April 1, 2013 – March 31, 2014)
The Company projects net sales of at least ¥6 trillion and operating income of at least ¥1 trillion under IFRSs in the fiscal year
ending March 31, 2014.

This operating income includes gains of ¥253.9 billion in total resulting from the reevaluation of theexisting equity interests held in GungHo Online Entertainment, Inc. and WILLCOM, Inc. at fair value when both companies
became subsidiaries.

* Notes(1) Significant changes in scope of consolidation (changes in scope of consolidation of specified subsidiaries):
Newly consolidated: One company Sprint Communications, Inc.

Yes

(2) Changes in accounting policies and accounting estimate[1] Changes in accounting policies required by IFRSs: No[2] Changes in accounting policies other than those in [1]: No[3] Changes in accounting estimates: Yes
Note:
Please refer to page 26 “(2) Changes in accounting policies and accounting estimates” under “2. Notes for Summary
Information” for detail.

(3) Number of shares issued (common stock)[1] Number of shares issued (including treasury stock):
As of September 30, 2013:
As of March 31, 2013:[2]   1,200,660,365 shares 
1,200,660,365 shares

Number of treasury stock:
As of September 30, 2013:
As of March 31, 2013:

[3]

  
 

8,720,258 shares
9,160,493 shares

Average stocks during six-month (Apr.-Sept.):
As of September 30, 2013:
As of September 30, 2012: 

1,191,661,988 shares
1,098,553,765 shares* Implementation status of interim review proceduresThis interim consolidated financial report is not subject to interim review procedures based on Financial Instruments andExchange Act, and the review procedures for the interim consolidated financial statements were being conducted when thisreport was disclosed.

* Note to forecasts on the consolidated results of operations and other items
The Company has adopted IFRSs from the three-month period ended June 30, 2013. For the differences between IFRSs andJapanese Generally Accepted Accounting Principles (“JGAAP”) in respect of the Company’s financial data, please refer to page75 “15. First-time adoption of IFRSs” in “(6) Notes to Condensed Interim Financial Statements” under “3. Condensed Interim
Consolidated Financial Statement” for details.
The forecast figures are estimated based on the information that the Company is able to obtain at the present point andassumptions which are deemed to be reasonable. However, actual results may be different due to various factors.
On October 31, 2013, the Company will hold an earnings results briefing for financial institutions, institutional investors, and the
media.
This earnings results briefing will be broadcast live on our website in both Japanese and English(http://www.softbank.jp/en/corp/irinfo/). The Earnings Results Data Sheets will also be posted on the Company’s web sitearound 4 p.m. on the day of the announcement: (http://www.softbank.jp/en/corp/irinfo/presentations/)

SoftBank Corp. Consolidated Financial Report
For the six-month period ended September 30, 2013

          (Appendix)
Contents
1.

2.

3.

Qualitative Information Regarding Six-month Period Results(1) Qualitative Information Regarding Consolidated Results of Operations
a. Consolidated Results of Operations
b. Results by Segment
 㧔Reference 1: Principal Operational Data㧕㧔Reference 2: Subsidiaries’ Definition and Calculation Method of Principal
Operational Data)㧔Reference 3: Capital Expenditure and Depreciation㧕(2) Qualitative Information Regarding Consolidated Financial Position
a. Assets, Liabilities, and Equity
b. Cash Flows(3) Qualitative Information Regarding Forecast on the Consolidated Operation Results
Notes for Summary Information(1) Significant changes in scope of consolidation for the six-month period ended
September 30, 2013
(2) Changes in Accounting Policies and Accounting Estimates
Condensed Interim Consolidated Financial Statements(1) Condensed Interim Consolidated Statements of Financial Position(2) Condensed Interim Consolidated Statements of Income and Other Comprehensive
Income(3) Condensed Interim Consolidated Statements of Changes in Equity(4) Condensed Interim Consolidated Statements of Cash Flows(5) Significant Doubt about Going Concern Assumption(6) Notes to Condensed Interim Consolidated Financial Statements

1

p. 2
p. 2
p. 2
p. 6
p.10
p.12
p.14
p.15
p.15
p.22
p.25
p.26
p.26
p.26
p.27
p.27
p.29
p.33
p.35
p.36
p.36

SoftBank Corp. Consolidated Financial Report
For the six-month period ended September 30, 2013

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

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

statements of financial position.
࡮Items related to the consolidated statements of income
́Goodwill is amortized regularly under JGAAP.

Under IFRSs, goodwill is not amortized regularly but tested for

impairment at least once a year.
́Commission fees paid related to the sales of mobile handsets were accounted for as costs when they occur under
JGAAP.

Under IFRSs, the amount of commission fees expected to occur in the future is deducted fromrevenues.
Please refer to page 75 “15. First-time adoption of IFRSs” under “3. Condensed Interim Consolidated Financial
Statements (6) Notes to Condensed Interim Consolidated Financial Statements” for details of these adjustments.
Concerning Consolidation of Sprint
As of July 10, 2013 the Company (SoftBank Corp. and its subsidiaries) closed the acquisition of Sprint Corporation(previously Sprint Nextel Corporation, “Sprint”) and started its consolidation.

Along with this, a new reportablesegment “Sprint,” has been established from the three-month period ended September 30, 2013 (the “second
quarter”).
For details about consolidation of Sprint, please refer to page 52 “(2) Sprint” under “3. Condensed Interim
Consolidated Financial Statements (6) Notes to Condensed Interim Financial Statements 5. Business combinations”(1) Qualitative Information Regarding Consolidated Results of Operations
a. Consolidated Results of Operations
For the six-month period ended September 30, 2013 (the “interim period”), the Company achieved consolidated
net sales of ¥2,598,612 million, a ¥1,093,968 million (72.7%) increase year on year, with a ¥285,941 million(66.6%) increase in operating income to ¥715,070 million.

2

Net income increased ¥186,345 million (76.8%) toSoftBank Corp. Consolidated Financial Report
For the six-month period ended September 30, 2013

          ¥428,873 million, and net income attributable to owners of the parent increased ¥180,357 million (84.1%) to¥394,916 million.
The main factors affecting earnings for the interim period were as follows:(a) Net Sales
Net sales totaled ¥2,598,612 million, for a ¥1,093,968 million (72.7%) year-on-year increase.

This was mainly

due to recording sales of ¥760,941 million in the newly added Sprint segment from the second quarter.

Apart

from this, the Mobile Communications segment also recorded a ¥298,564 million year-on-year increase in net
sales.

The increase in the Mobile Communications segment was due to the impact of consolidating eAccessLtd. from January 2013, GungHo Online Entertainment, Inc. 1 (“GungHo”) from April 2013 and WILLCOM,
Inc. 2 from July 2013, as well as increases in the number of subscribers and units sold 3 at SoftBank Mobile
Corp., which led to increases in both service revenue (mainly former telecommunications revenue) and productsales (mainly former sales of handsets).

(b) Cost of Sales
Cost of sales increased ¥706,640 million (98.4%) year on year to ¥1,424,908 million.
to the addition of the Sprint segment.

This was primarily due

Furthermore, in the Mobile Communications segment, in addition to theimpact of consolidating eAccess Ltd., GungHo, and WILLCOM, Inc., the cost of goods rose in line with anincrease in the number of iPhones 4 and other smartphones sold at SoftBank Mobile Corp.

(c) Selling, General and Administrative Expenses
Selling, general and administrative expenses increased by ¥350,398 million (98.1%) year on year to ¥707,645
million.

This was mainly due to the addition of the Sprint segment.

Furthermore, in the Mobile

Communications segment, in addition to the impact of consolidating eAccess Ltd., GungHo, and WILLCOM,
Inc., there was an increase in sales commissions at SoftBank Mobile Corp.

(d) Income from Remeasurement Relating to Business Combinations
Income from remeasurement relating to business combinations was ¥253,886 million (not recorded in the same
period of the previous fiscal year).

This corresponds to income of ¥150,120 million and ¥103,766 million

recognized following reevaluation at fair value of the Company’s equity interests in GungHo and WILLCOM,
Inc., already held on the dates when the Company acquired control of each company.

Please refer to page 50“(1) GungHo Online Entertainment, Inc.” and page 57 “(3) WILLCOM, Inc.” under “3. Condensed Interim

1

GungHo was made a subsidiary of the Company from an associate in April 2013. See page 50 “ (1) GungHo Online
Entertainment, Inc.” under “3. Condensed Interim Consolidated Financial Statements (6) Notes to Condensed Interim
Consolidated Financial Statements 5. Business combinations” for details.
2
WILLCOM, Inc. was made a subsidiary of the Company in July 2013. See page 57 “(3) WILLCOM, Inc.” under “3.
Condensed Interim Consolidated Financial Statements (6) Notes to Condensed Interim Consolidated Financial Statements 5.
Business combinations” for details.
3
Units sold: the total number of new subscriptions and handset upgrades
4
iPhone is a trademark of Apple Inc. The iPhone trademark is used under license from Aiphone K.K.

3

SoftBank Corp. Consolidated Financial Report
For the six-month period ended September 30, 2013

          Consolidated Financial Statements (6) Notes to Condensed Interim Consolidated Financial Statements 5.
Business combinations” for details.
(e) Other Operating Loss
Other operating loss was ¥4,875 million (not recorded in the same period of the previous fiscal year).

(f) Operating Income
As a result of (a) to (e), operating income totaled ¥715,070 million, for a ¥285,941 million (66.6%) year-on-yearincrease.

(g) Finance Cost, Net
Finance cost, net deteriorated ¥67,646 million year on year to a loss of ¥105,023 million.
components were as shown below.

The main

Please refer to page 69 “12. Finance cost, net” under “3. Condensed

Interim Consolidated Financial Statements (6) Notes to Condensed Interim Consolidated Financial Statements”
for details about derivative losses and interest income.
i. Interest expense increased ¥80,208 million year on year to ¥105,862 million.

The increase was mainly

due to the impact of adding the interest expense of Sprint, as well as an increase in interest expenses forbonds and borrowings at SoftBank Corp.
ii. Derivative losses increased ¥23,319 million year on year to ¥25,824 million.
࡮Stock acquisition rights in the convertible bonds issued by Sprint Nextel Corporation and undertaken by
Starburst II, Inc. on October 22, 2012 were recorded at fair value as a derivative.

As the Company

exercised the relevant stock acquisition rights and derecognized the derivatives, a derivative loss of ¥16,356
million was recorded.
࡮Of the foreign currency forward contract totaling approximate $22.0 billion which is related to theacquisition of Sprint, with regard to the approximate $5.0 billion that did not meet the criteria for hedge
accounting, a derivative loss of ¥13,186 million was recorded.

Hedge accounting was applied to theapproximate $17.0 billion, which resulted in a deduction of the acquisition cost of Sprint by ¥311,659
million.
iii. Interest income increased ¥18,817 million year on year to ¥19,284 million.

Regarding the convertible

bonds issued by Sprint Nextel Corporation, initially the expected remaining accretion period for the bonddiscount was 7 years based on the contract term of the bonds.

However, the Company changed theestimate of the expected remaining term to the completion of the acquisition.

Accordingly, the Company

recognized interest income of ¥16,219 million, in conjunction with the change in the expected remaining
term of the bonds.

(h) Equity in Loss of Associates
Equity in loss of associates was ¥3,780 million, a deterioration of ¥2,500 million year on year (equity in loss of
associates of ¥1,280 million was recorded for the same period of the previous fiscal year).

4SoftBank Corp. Consolidated Financial Report
For the six-month period ended September 30, 2013

          (i) Income before Income Tax

As a result of (f) to (h), income before income tax was ¥606,267 million, an increase of ¥215,795 million(55.3%) year on year.
(j) Income Taxes
Provisions for current income taxes were ¥177,394 million, an increase of ¥29,450 million (19.9%) year on year.
The increase was mainly attributable to the consolidation of GungHo.

(k) Net Income
As a result of (i) to (j), net income totaled ¥428,873 million, for a ¥186,345 million (76.8%) year-on-yearincrease.

(l) Net Income Attributable to Owners of the Parent
After deducting net income attributable to non-controlling interests in subsidiaries such as Yahoo Japan
Corporation and GungHo from (k), net income attributable to owners of the parent was ¥394,916 million, for a¥180,357 million (84.1%) increase year on year.

(m) Comprehensive Income
Total comprehensive income was ¥190,910 million, for a ¥37,261 million (16.3%) year-on-year decrease.

Of

this, comprehensive income attributable to owners of the parent was ¥172,802 million (for a ¥27,202 million(13.6%) year-on-year decrease).

5

SoftBank Corp. Consolidated Financial Report
For the six-month period ended September 30, 2013

          
b. Results by Segment

The Company’s reportable segments(Note 1) are components of business activities for which decisions on resource
allocation and assessment of performance are made.

The Company has four reportable segments: “Mobile

Communications,” “Sprint,” “Fixed-line Telecommunications,” and “Internet.”
From the second quarter, the former “Domestic Mobile Communications” and “Domestic Fixed-line
Telecommunications” segments were renamed as “Mobile Communications” and “Fixed-line Telecommunications,”
respectively. The Sprint segment was newly established from the second quarter, along with Sprint’s consolidation.

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

Main BusinessCore Companies
࡮Provision of mobile communications services SoftBank Mobile Corp.
in JapaneAccess Ltd.
࡮Sales of mobile handsets and accessories
WILLCOM, Inc.
Mobile࡮Sales of PC software and peripherals
Wireless City Planning Inc.
࡮Production and distribution of online games SoftBank BB Corp.
Communications
for smartphones, and other devices.
SoftBank Telecom Corp.
GungHo Online
Entertainment, Inc.
࡮Provision of mobile communications services Sprint Corporation
by Sprint in the U.S.
࡮Sales of mobile handsets and accessories
Sprintaccompanying the above services
Reportable
࡮Provision of fixed-line telecommunications
Segments
services by Sprint
࡮Provision of telecom services such as
SoftBank Telecom Corp.
fixed-line and data communication services, SoftBank BB Corp.
Fixed-line
etc. to domestic corporate customers
eAccess Ltd.
Telecommunications ࡮Provision of broadband services to domestic Yahoo Japan Corporationindividual customers
࡮Services accompanying the above services
࡮Internet advertising
Yahoo Japan Corporation
࡮Operation of e-commerce sites such as
Internet
YAHUOKU! and Yahoo! Shopping, etc.
࡮Membership services
Others࡮Fukuoka SoftBank HAWKS related businesses Fukuoka SoftBank HAWKS
Corp.
Fukuoka SoftBank HAWKS
Marketing Corp.

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

6SoftBank Corp. Consolidated Financial Report
For the six-month period ended September 30, 2013

          (a) Mobile Communications Segment(Millions of yen)Six-month Period
Ended Sept. 30, 2012
YoY

Six-month Period
Ended Sept. 30, 2013
(the interim period)

Net sales

1,087,963

1,386,527

298,56427.4%

Segment income

289,951

339,551

49,60017.1%

ChangeChange %< Overview of Operations >The segment’s net sales increased by ¥298,564 million (27.4%) year on year to ¥1,386,527 million.

The mainfactor behind the increase was the impact of consolidating eAccess Ltd., GungHo, and WILLCOM, Inc., inaddition to increases in the number of mobile phone subscribers and units sold at SoftBank Mobile Corp., which
led to increases in both service revenue (mainly former telecom service revenue) and product sales (mainly
former sales of mobile handsets).
The segment’s operating expenses increased by ¥248,964 million (31.2%) year on year to ¥1,046,976 million.
The principal cause of this increase was the impact of consolidating eAccess Ltd., GungHo, and WILLCOM,
Inc., and higher operating expenses at SoftBank Mobile Corp.

The cost of goods and sales commissions roseat SoftBank Mobile Corp. in line with sales enhancement of iPhones and other smartphones.
As a result, segment income increased by ¥49,600 million (17.1%) year on year to ¥339,551 million.

< Overview of Business Operations >࡮Number of Subscribers
Net subscriber additions (new subscribers minus cancellations) for the interim period at SoftBank Mobile Corp.
totaled 1,586,000. This was primarily the result of steady sales of smartphones such as iPhone, Mimamori
Phone (handset with security buzzer), and PhotoVision (a digital photo frame with telecommunications
functionality), due to conducting various sales promotions for iPhone. 5

As a result, the cumulative number ofsubscribers 6 at SoftBank Mobile Corp. at the end of the second quarter stood at 34,066,000.

࡮ARPU
ARPU (excluding communication modules) 7 at SoftBank Mobile Corp. for the second quarter decreased by¥130 year on year to ¥4,520.

Out of this, data ARPU rose ¥170 year on year to ¥2,930.

The decline in ARPU

mainly reflects an increase in subscribers of low data-usage products such as Mimamori Phone, and a decline in
the usage of voice call function of voice devices.

As for data ARPU, the continuous increase in the number ofhigh data-ARPU smartphone subscribers contributed to an increase.

5

Including a promotion for new and upgrading customers offering discounts, a promotion offering discounts to upgrading
existing customers that allows their family members to use the old handset (if they make a new subscription), etc.
6
Includes the number of prepaid mobile phones and communication module service subscribers.
The cumulative number of communication module service subscribers at the end of the second quarter totaled 3,341,000.
7For definition and calculation of ARPU at SoftBank Mobile Corp., see page 12 “(Reference 2: Subsidiaries’ Definition andCalculation Method of Principal Operational Data (a) SoftBank Mobile Corp.)”7

SoftBank Corp. Consolidated Financial Report
For the six-month period ended September 30, 2013

          ࡮Number of Units Sold

The number of units sold at SoftBank Mobile Corp. for the interim period increased by 587,000 year on year to6,170,000.

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

(b) Sprint Segment(Millions of yen)Six-month Period
Ended Sept. 30, 2012
YoY
Net sales
Segment income(loss)

Six-month Period
Ended Sept. 30, 2013
(the interim period)

Segment was newly
established from thissecond quarter

ChangeChange %760,941--%(22,304)

-

-%

Note:
4. In the Sprint segment, the earnings reflect the operation results of Sprint since July 11, 2013, whereas its
principal operational data 8 for the second quarter, such as number of subscribers, ARPU and churn rate, arepresented based on Sprint’s operation results from July 1 to September 30, 2013 for reference purposes.
< Overview of Operations >This mainly includes Sprint platform 9 service revenue and

The segment’s net sales totaled ¥760,941 million.
product sales.

Nextel platform 10 service revenue is no longer recorded in the second quarter as a result of its

shutdown on June 30, 2013.
The segment’s operating expenses totaled ¥783,245 million.

Operating expenses include ¥43,700 million ofamortization of customer relationships (amortized based on the sum-of-the-digits method) recorded at Sprint’s
consolidation.
As a result, segment loss was ¥22,304 million.

< Overview of Business Operations >Net subscriber losses for the second quarter at Sprint totaled 313,000, which included net loss of 535,000 in
postpaid, and net additions of 28,000 in prepaid and 194,000 in wholesale and affiliate.

As a result, thecumulative number of subscribers at Sprint at the end of the second quarter stood at 54,877,000.

This includes

30,906,000 postpaid subscribers, 16,003,000 prepaid subscribers and 7,968,000 wholesale and affiliate
subscribers.
For the second quarter, Sprint platform ARPU was $64.28 for postpaid and $25.33 for prepaid, and its churnrate was 1.99 % for postpaid and 3.57 % for prepaid.
8

For definition and calculation of ARPU and churn rate at Sprint, see page 13 “(Reference 2: Subsidiaries’ Definition andCalculation Method of Principal Operational Data (b) Sprint Platform).”
9
Sprint operated CDMA and LTE networks. This excludes the Nextel/ iDEN network and the subscribers/network acquired
through transactions with U.S. Cellular Corporation and Clearwire Corporation.
10
Wireless service operated on Integrated Digital Enhanced Network (iDEN), which Sprint acquired from Nextel Corporation in
2005.

8

SoftBank Corp. Consolidated Financial Report
For the six-month period ended September 30, 2013

          (c) Fixed-line Telecommunications Segment(Millions of yen)Six-month Period
Ended Sept. 30, 2012
YoY

Six-month Period
Ended Sept. 30, 2013
(the interim period)

Net sales

262,064

270,369

8,305

3.2%

Segment income

59,84959,116(733)(1.2%)

ChangeChange %< Overview of Operations >The segment’s net sales increased by ¥8,305 million (3.2%) year on year to ¥270,369 million.
mainly the impact of consolidating eAccess Ltd.

This wasOn the other hand, revenues from the broadband business forindividual customers decreased due to a decline in the number of ADSL service subscribers.
Segment income decreased by ¥733 million (1.2%) year on year to ¥59,116 million.

This was mainly due tothe decrease in net sales in the broadband business for individual customers.

(d) Internet Segment(Millions of yen)Six-month Period
Ended Sept. 30, 2012
YoY

Six-month Period
Ended Sept. 30, 2013
(the interim period)

Net sales

163,061

196,290

33,22920.4%

Segment income

81,271

94,583

13,312

16.4%

ChangeChange %<Overview of Operations>
The segment’s net sales increased by ¥33,229 million (20.4%) year on year to ¥196,290 million.

The increase

was the result of growth in display advertising 11 revenue due to a significant increase in advertisements on
Yahoo! Display Ad Network (YDN) 12 and an increase in revenue from sponsored-search advertising, especiallythrough smartphones, at Yahoo Japan Corporation.
Segment income increased by ¥13,312 million (16.4%) year on year to ¥94,583 million.

This was primarily

the result of the increase in net sales.

11

Advertisements displayed on the contents pages of Yahoo! JAPAN and major affiliated websites. Includes a mechanism thatshows advertisements related to advertisers’ products and services in which a user might be interested, based on the content theuser is viewing, the user’s interests (as derived from the user’s browsing history or search keywords), attributes, or geographicallocations.
12
Graphical, Flash, and video advertising that appears on a certain defined area. Includes Premium advertisements such as Brand
Panel shown on Yahoo! JAPAN’s top page and Yahoo! Display Ad Network (YDN).

9

SoftBank Corp. Consolidated Financial Report
For the six-month period ended September 30, 2013

          (Reference 1: Principal Operational Data㧕㧕(a) Mobile Communications Segment

Fiscal Year Ending March 31,
2014

Cumulative
subscribers 13

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

Three-month
Period Ended
Sept. 30, 2012

Three-month
Period Ended
Dec. 31, 2012

Q1

Q2

Q3

SoftBank Mobile Corp.

29,702

30,461

31,322eAccess Ltd.

4,138

4,259

4,696

Net additions13
Postpaid

Three-monthFiscal Year
Period Ended Ended March
31, 2013
March 31, 2013

Three-month
Period Ended
June 30, 2013

Three-month
Period Ended
Sept. 30, 2013

Q1

Q2

32,48033,29034,066

4,292

4,319

4,343

4,415

4,814

4,943

5,086

5,199

5,310

753

759

861

1,158

3,531

810

776

772

771

872

1,170

3,585

818

790

-19

-12

-11

-12

-55

-8

-14

4,510

4,650

4,640

4,400

4,550

4,460

4,520

2,710

2,760

2,800

2,840

2,780

2,870

2,930

2,359

2,631

3,486

3,082

11,558

2,575

2,734

2,586

2,997

3,843

3,686

13,113

3,023

3,148

New subscriptions

1,663

1,718

1,894

2,243

7,519

1,790

1,902

Handset upgrades

923

1,279

1,949

1,443

5,594

1,233

1,246

1.03

1.06

1.12

1.14

1.09

0.99

1.11

0.96

1.00

1.06

1.09

1.03

0.94

1.06

1.05

1.42

2.10

1.51

1.53

1.25

1.23

4,210

4,340

4,300

4,060

4,230

4,090

4,120

2,540

2,580

2,610

2,630

2,590

2,640

2,690

Full Year

Q4(Thousands)

WILLCOM, Inc. (PHS)(Thousands)

Prepaid(¥ / month)

ARPU

SoftBank Mobile Corp.

(excl. communication
modules) 14

Data(Thousands)

Handsets shipped 15(Thousands)

Units sold 16(% / month)

Churn rate14
Postpaid(% / month)

Upgrade rate14(Ref.)(¥ / month)

ARPU(incl. communication
modules) 14

Data

13

Includes the number of prepaid mobile phones and communication module service subscribers.
For definition and calculation method of ARPU, churn and upgrade rates at SoftBank Mobile Corp., see page 12 “(Reference 2:
Subsidiaries’ Definition and Calculation Method of Principal Operational Data (a) SoftBank Mobile Corp.)”15
Handsets shipped: the number of handsets shipped (sold) to handset dealers
16
Units sold: the total number of new subscriptions and handset upgrades
14

10

SoftBank Corp. Consolidated Financial Report
For the six-month period ended September 30, 2013

          (b) Sprint Segment

Cumulative
Subscribers 17

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

Three-month
Period Ended
Sept. 30, 2012

Three-month
Period Ended
Dec. 31, 2012

Three-monthFiscal Year
Period Ended Ended March
31, 2013
March 31, 2013
Full Year
Q4

Q1

Q2

Q3

Sprint platform

51,97452,85753,540

Nextel platform
U.S. Cellular andClearwire 18

4,412

3,106

-

Net additions17

Fiscal Year Ending March 31,
2014
Three-monthThree-month
Period Ended Period Ended
June 30, 2013 Sept. 30, 2013
Q1

Q2

53,89653,37653,252

2,086

1,315

-

-

-

-

-

212

1,625

1,281

883

683

356

-520

-95

Postpaid

442

410

401

12

194

-360

Prepaid
Wholesale &affiliate

451

459

525

568

-486

84

388

14

-243

-224

-228

181

Postpaid

63.38

63.21

63.04

63.67

64.20

64.28

Prepaid

25.49

26.19

26.30

25.95

26.96

25.33

Postpaid

1.69

1.88

1.98

1.84

1.83

1.99

Prepaid

3.16

2.93

3.02

3.05

5.22

3.57

(Thousands)

Sprint platform(Thousands)

ARPU 19

Churn rate19($/ month)(%/ month)17

Includes the number of prepaid mobile phones and communication module service subscribers.
Sprint acquired approximately 352,000 postpaid subscribers and 59,000 prepaid subscribers through the acquisition of assets
from U.S. Cellular when the transaction closed on May 17, 2013. Sprint acquired approximately 788,000 postpaid subscribers,
721,000 prepaid subscribers, 93,000 wholesale subscribers and transferred 29,000 Sprint wholesale subscribers that wereoriginally recognized through Sprint’s Clearwire MVNO arrangement to this category’s postpaid subscribers as a result of the
Clearwire acquisition when the transaction closed on July 9, 2013.
19
For definition and calculation of ARPU and churn rate of Sprint platform, see page 13 “(Reference 2: Subsidiaries’ Definition
and Calculation Method of Principal Operational Data (b) Sprint Platform).”
18

11

SoftBank Corp. Consolidated Financial Report
For the six-month period ended September 30, 2013

          (Reference 2: Subsidiaries’ Definition and Calculation Method of Principal Operational Data)(a) SoftBank Mobile Corp.
i. ARPU
ARPU (Average Revenue Per User per month㧕(rounded to the nearest ¥10)
ARPU (excluding communication modules)= (data-related revenue (excluding communication modules) + basic monthly charge, voice-related revenues, etc.
(excluding communication modules)) / number of active subscribers (excluding communication modules)
Data ARPU (excluding communication modules)= data-related revenue (excluding communication modules) / number of active subscribers (excluding communication
modules)
ARPU (including communication modules)= (data-related revenue + basic monthly charge, voice-related revenues, etc.) / number of active subscribers

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

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

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

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

          (b) Sprint Platform
i. ARPU
ARPU (Average Revenue Per User per month㧕(rounded to the nearest $.00)
ARPU = Service revenue/ average number of active subscribers

Number of active subscribers: the total of the monthly number of active subscribers for the relevant period((subscribers at the beginning of the month + subscribers at the end of the month)/2).
The number of active subscribers is based on cumulative subscribers including communication
modules and devices that do not have voice communication functionalities.

ii. Churn rate
Churn rate = number of deactivations / average number of active subscribers (rounded to the nearest 0.01%)
Deactivations = total number of subscribers that churned during the relevant period
Number of active subscribers: the total of the monthly number of active subscribers for the relevant period((subscribers at the beginning of the month + subscribers at the end of the month)/2).
The number of active postpaid subscribers is based on cumulative subscribers including
communication modules, and devices that do not have voice communication functionalities.
The number of deactivations excludes the number of subscribers who switches between
prepaid and postpaid on the same date.

13

SoftBank Corp. Consolidated Financial Report
For the six-month period ended September 30, 2013

          (Reference 3: Capital Expenditure and Depreciation)(Note 5)(a) Capital Expenditure (acceptance basis)
㧔Millions of yen㧕

Fiscal Year Ending
March 31,2014

Fiscal Year Ended March 31, 2013

MobileCommunications
segment

Three-month
Period Ended
June 30, 2012

Three-month
Period Ended
Sept. 30, 2012

Three-month
Period Ended
Dec. 31, 2012

Three-month
Period Ended
March 31,2013

Fiscal Year
Ended March
31, 2013

Q1

Q2

Q3

Q4

Full Year

92,500141,927

176,705

238,751

Sprintsegment(Note 6)
Fixed-line
Telecommunications segment

649,883

Three-month
Period Ended
June 30, 2013

Three-month
Period Ended
Sept. 30, 2013

Q1

Q2

163,581

164,563

Segment was newly established from this second quarter

163,574

10,292

12,708

16,216

26,466

65,682

9,903

16,743

4,942

3,195

6,310

8,538

22,985

4,393

2,746

7,163

1,866

2,126

3,456

14,611

2,835

4,694

114,897

159,696

201,357

277,211753,161

180,712352,320

Internet segment
OthersConsolidated total(b) Depreciation and Amortization
㧔Millions of yen㧕

Fiscal Year Ending March
31,2014

Fiscal Year Ended March 31, 2013

MobileCommunications
segment

Three-month
Period Ended
June 30, 2012

Three-month
Period Ended
Sept. 30, 2012

Three-month
Period Ended
Dec. 31, 2012

Q1

Q2

Q3

59,69363,54867,778Sprintsegment(Note 6)
Fixed-line
Telecommunications segment

Three-month
Period Ended
March 31,
2013
Q4

Fiscal Year
Ended
March 31,2013
Full Year

89,204

280,223

Three-month
Period Ended
June 30, 2013

Three-month
Period Ended
Sept. 30, 2013

Q1

Q2

83,367

92,228Segment was newly established from this second quarter

134,191

12,603

12,642

12,79815,78653,82914,80914,918

3,171

2,917

2,992

3,490

12,570

3,221

3,218

1,956

2,114

2,127

2,301

8,498

1,902

2,085

77,423

81,221

85,695

110,781355,120

103,299

246,640

Internet segment
OthersConsolidated total

Notes:
5. The results for the previous fiscal year and each quarter of the previous fiscal year have been presented in linewith the reportable segments for the second quarter.
6. Capital expenditures, depreciation and amortizations of Sprint Segment are recorded from July 11, 2013.

14

SoftBank Corp. Consolidated Financial Report
For the six-month period ended September 30, 2013

          (2) Qualitative Information Regarding Consolidated Financial Positiona. Assets, Liabilities, and Equity
Assets, liabilities, and equity at the end of the second quarter were as follows:(Millions of yen)

As of March 31, 2013

As of Sept. 30, 2013

ChangeChange %Total assets

7,216,809

15,604,540

8,387,731

116.2%

Total liabilities

5,286,381

13,078,821

7,792,440

147.4%

Total equity

1,930,428

2,525,719

595,291

30.8%(a) Current Assets(Millions of yen)
Opening balanceof Sprint on
acquisition date(July 10, 2013)
B

Other changes

As ofSept. 30, 2013

ChangeC

D=A+B+C

E=B+C

1,439,057

447,873296,670

2,183,600

744,543936,307327,21125,284

1,288,802

352,495

Other financial assets

229,239

111,764

174,675

515,678

286,439

Inventories

54,268105,318

56,701

216,287

162,019

Other current assets

127,148

42,762(17,944)

151,966

24,818

Total current assets

2,786,019

1,034,928

535,386

4,356,333

1,570,314

Item

As of
March 31, 2013
A

Cash andcash equivalents
Trade andother receivables

Current assets at the end of the second quarter totaled ¥4,356,333 million, for a ¥1,570,314 million (56.4%)
increase from March 31, 2013 (the “previous fiscal year-end”).

The components of the change of primary

items were as follows:i. Cash and cash equivalents
Cash and cash equivalents at the end of the second quarter totaled ¥2,183,600 million, for a ¥744,543 million
increase from the previous fiscal year-end.
࡮The Company recognized ¥447,873 million for the consolidation of Sprint on the acquisition date.
࡮Sprint issued straight corporate bonds in the amount of $6.5 billion (¥638,300 million) in September 2013

and recorded cash and cash equivalents of approximately $3.0 billion and a segregated reserve account ofapproximately $3.5 billion.

This is due to Sprint obtaining a limited waiver from each of the lenders of its

credit line facilities, which should enable compliance with a financial covenant on its interest-bearing debts.
As a requirement under the waivers, Sprint must maintain a segregated reserve account of approximately$3.5 billion until the earlier of the time existing Clearwire Corporation indebtedness is prepaid, or
December 31, 2013 at which time the waivers will have expired.

Sprint has already retired part ofClearwire Corporation’s indebtedness by the end of September 2013 and the balance of restricted cash wasapproximately $3.1 billion at the end of the second quarter.

15

SoftBank Corp. Consolidated Financial Report
For the six-month period ended September 30, 2013

          

Please refer to page 66 “(Note 3) Covenants on interest-bearing debts of Sprint” under “3. Condensed
Interim Consolidated Financial Statements (6) Notes to Condensed Interim Consolidated Financial
Statements 9. Interest-bearing debt (1) Components of interest-bearing debt” for details about Sprint’ssegregated reserve account.
ii. Trade and other receivables
Trade and other receivables at the end of the second quarter totaled ¥1,288,802 million, an increase of ¥352,495
million from the previous fiscal year-end.

This increase was primarily due to recording ¥327,211 million forthe consolidation of Sprint on the acquisition date.
iii. Other financial assets
Other financial assets at the end of the second quarter totaled ¥515,678 million, an increase of ¥286,439 million
from the previous fiscal year-end. Sprint’s segregated reserve account of ¥298,138 million, and items such asderivative financial assets, fixed-term deposits and marketable securities are included in other financial assets.
࡮The Company recognized ¥111,764 million for the consolidation of Sprint on the acquisition date.
࡮Sprint deposited approximately $3.1 billion (¥299,501 million) into a segregated reserve account as arequirement of a limited waiver for its interest-bearing debt, resulting in an increase of other financial assets.
Please refer to page 66 “(Note 3) Covenants on interest-bearing debts of Sprint” under “3. Condensed
Interim Consolidated Financial Statements (6) Notes to Condensed Interim Consolidated Financial
Statements 9. Interest-bearing debt (1) Components of interest-bearing debt” for details about Sprint’ssegregated reserve account.
࡮The Company had concluded a foreign currency forward contract for approximately $17.0 billion in relation tofunding for the acquisition of Sprint, and recorded the fair value of this contract of ¥189,357 million inderivative financial assets at the end of the previous fiscal year. However, this derivative financial asset wasderecognized and no value was ascribed to it due to the settlement of the foreign exchange transaction upon thecompletion of the acquisition of Sprint. Please refer to page 69 “12. Finance cost, net” under “3. Condensed
Interim Consolidated Financial Statements (6) Notes to Condensed Interim Consolidated Financial Statements”
for details.

16SoftBank Corp. Consolidated Financial Report
For the six-month period ended September 30, 2013

          (b) Non-current Assets(Millions of yen)

Item

As of
March 31, 2013
A

Property, plant andequipment

Opening balanceof Sprint on
acquisition date(July 10, 2013)
B

Other changes

As ofSept. 30, 2013

ChangeC

D=A+B+C

E=B+C

1,830,615

1,291,364

182,8093,304,788

1,474,173

Goodwill

927,399

294,418

151,015

1,372,832

445,433

Intangible assets
Investments
accounted for using
the equity method
Other financial
assets524,893

5,275,623(86,700)

5,713,816

5,188,923

208,664㧙

910

209,574910

634,647

23,938(357,609)

300,976(333,671)

Deferred tax assets
Other non-current
assetsTotal non-current
assets

175,390㧙

(11,879)

163,511(11,879)

129,182

13,18840,340182,71053,5284,430,790

6,898,531(81,114)

11,248,207

6,817,417

Non-current assets totaled ¥11,248,207 million at the end of the second quarter, for a ¥6,817,417 million (153.9 %)increase from the previous fiscal year-end. The components of the change of primary items were as follows:i. Property, plant and equipment
Property, plant and equipment at the end of the second quarter totaled ¥3,304,788 million, for a ¥1,474,173
million increase from the previous fiscal year-end.

This was mainly due to ¥1,291,364 million recognized forthe consolidation of Sprint on the acquisition date.

In addition, property, plant and equipment increased by¥182,809 million due to capital expenditure, mainly in the Mobile Communications and Sprint segments.
ii. Goodwill
Goodwill at the end of the second quarter totaled ¥1,372,832 million, for a ¥445,433 million increase from theprevious fiscal year-end.
࡮The Company recorded ¥294,418 million of goodwill for the consolidation of Sprint on the acquisition date.

In relation to the acquisition of Sprint, the Company entered into a foreign currency forward contract, out of
which approximately $17.0 billion was accounted for under hedge accounting.

The fair value on theacquisition date of ¥311,659 million of this hedging instrument was deducted from the amount of goodwill
initially recognized from the acquisition of Sprint. Please refer to page 56 “(Note 6) Basis adjustment”
under “3. Condensed Interim Consolidated Financial Statements (6) Notes to Condensed Interim
Consolidated Financial Statements 5. Business combinations (2) Sprint f. Fair values of assets, liabilities,
non-controlling interests and goodwill on the acquisition date” for details.
࡮The Company recorded goodwill of ¥146,032 million in relation to GungHo and ¥21,469 million in relation

to WILLCOM, Inc. following their consolidation.

17

SoftBank Corp. Consolidated Financial Report
For the six-month period ended September 30, 2013

          iii. Intangible assets

Intangible assets at the end of the second quarter totaled ¥5,713,816 million, for a ¥5,188,923 million increase
from the previous fiscal year-end.
࡮The Company recorded ¥3,472,492 million for FCC Licenses

recognized at the previous fiscal year-end).

20

at the end of the second quarter (none

The Company recognized ¥3,587,335 million for the

consolidation of Sprint on the acquisition date; however, the amount decreased by ¥114,843 million due tothe stronger yen at the end of the second quarter compared to the acquisition date of Sprint.

From anaccounting perspective FCC Licenses are non-amortized assets.
࡮Customer relationships at the end of the second quarter totaled ¥730,037 million, for a ¥646,161 million

increase from the previous fiscal year-end.

This was mainly due to recognizing Sprint’s customer

relationships of ¥700,192 million for the consolidation of Sprint on the acquisition date.

Customer

relationships, mainly in relation to Sprint, eAccess Ltd. and WILLCOM, Inc., were amortized by total of¥55,766 million in the interim period.

In addition to these, there was a decrease by ¥23,269 million due tothe stronger yen at the end of the second quarter compared to the acquisition date of Sprint.
࡮The Company recorded trademarks with indefinite useful lives of ¥580,146 million at the end of the second

quarter (none recognized at the previous fiscal year-end).

This was due to recognizing ¥600,266 million

for trademarks held by Sprint for the consolidation on the acquisition date.

Trademarks with indefinite

useful lives are non-amortized assets.
࡮Software at the end of the second quarter totaled ¥590,777 million, for a ¥179,492 million increase from theprevious fiscal year-end.

The main components of the change were ¥138,330 million recognized for the

consolidation of Sprint on the acquisition date and an increase of ¥41,162 million due to capital
expenditures, mainly in the Mobile Communications and Sprint segments.
iv. Other financial assets
Other financial assets at the end of the second quarter totaled ¥300,976 million, for a ¥333,671 million decrease
from the previous fiscal year-end.

At the previous fiscal year-end the convertible bonds issued by Sprint

Nextel corporation and shares of WILLCOM, Inc. were recorded as investment securities.

The decrease wasmainly related to the ending amount of both investment securities becoming zero, as a result of theirconsolidation in the second quarter.

20

Licenses issued by the U.S. Federal Communications Commission for use of specified frequency bands.

18

SoftBank Corp. Consolidated Financial Report
For the six-month period ended September 30, 2013

          (c) Current Liabilities(Millions of yen)
Opening balanceof Sprint on
acquisition date(July 10, 2013)
B

Other changes

As ofSept. 30, 2013

ChangeC

D=A+B+C

E=B+C

1,534,128

86,961(417,569)

1,203,520(330,608)

972,669

651,608(54,814)

1,569,463

596,794

4,833

-

(416)

4,417

(416)

182,050

3,917

538

186,505

4,455

1,602

90,340

1,903

93,84592,243

142,634

286,158(20,781)408,011265,377

2,837,916

1,118,984(491,139)

3,465,761

627,845

As of
Item

March 31, 2013
A

Interest-bearing
debt
Trade andother payables
Other financial
liabilities
Income taxes
payablesProvisions
Other current
liabilities
Total current
liabilities

Current liabilities at the end of the second quarter totaled ¥3,465,761 million, for a ¥627,845 million (22.1 %)increase from the previous fiscal year-end.

The components of the change of primary items were as follows:i. Interest-bearing debt
Interest-bearing debt at the end of the second quarter totaled ¥1,203,520 million, for a ¥330,608 million
decrease from the previous fiscal year-end.

This was mainly due to decreases of ¥258,413 million in thecurrent portion of long-term borrowings and ¥124,026 million in short-term borrowings.

This was due to theCompany repaying part of existing borrowings, in accordance with the refinancing of the Sprint acquisition
bridge loan and existing borrowings in September 2013.
ii. Trade and other payables
Trade and other payables at the end of the second quarter totaled ¥1,569,463 million for a ¥596,794 million
increase from the previous fiscal year-end.

This was mainly due to ¥651,608 million recognized for the

consolidation of Sprint on the acquisition date.
iii. Other current liabilities
Other current liabilities at the end of the second quarter totaled ¥408,011 million for a ¥265,377 million
increase from the previous fiscal year-end.

This was mainly due to ¥286,158 million recognized for the

consolidation of Sprint on the acquisition date.

19

SoftBank Corp. Consolidated Financial Report
For the six-month period ended September 30, 2013

          (d) Non-current Liabilities(Millions of yen)

Item

As of
March 31, 2013
A

Opening balanceof Sprint on
acquisition date(July 10, 2013)
B

Other changes

As ofSept. 30, 2013

ChangeC

D=A+B+C

E=B+C

Interest-bearing
debt

2,173,725

2,671,299

2,791,620

7,636,644

5,462,919

Other financial
liabilities

38,654

7,544

22,777

68,97530,321

Defined benefit
liabilities

14,506

65,763(1,920)78,34963,843

Provisions

21,765

147,947(22,518)

147,194

125,429

Deferred tax
liabilities

119,628

1,423,086(115,382)

1,427,332

1,307,704

Other non-current
liabilities

80,187

184,106(9,727)

254,566

174,379

Total non-current
liabilities

2,448,465

4,499,745

2,664,850

9,613,060

7,164,595

Non-current liabilities totaled ¥9,613,060 million at the end of the second quarter, for a ¥7,164,595 million (292.6 %)increase from the previous fiscal year-end. The components of the change of primary items were as follows:i. Interest-bearing debt
Interest-bearing debt at the end of the second quarter totaled ¥7,636,644 million, for an increase of ¥5,462,919
million from the previous fiscal year-end.
࡮Corporate bonds at the end of the second quarter totaled ¥4,531,948 million, for a ¥3,740,029 million

increase from the previous fiscal year-end.

The increase in corporate bonds mainly reflects ¥2,593,343

million recognized for the consolidation of Sprint on the acquisition date, in addition to Sprint’s issuance ofstraight corporate bonds in the amount of $6.5 billion (¥638,300 million), and SoftBank Corp.’s issuance of
unsecured straight corporate bonds of ¥400,000 million and foreign currency denominated straight corporate
bonds of ¥324,382 million.
࡮Long-term borrowings at the end of the second quarter totaled ¥2,110,735 million, for an increase of¥1,599,879 million from the previous fiscal year-end.

This was mainly due to the Company entering into aloan agreement with maximum amount of borrowing at ¥1.98 trillion in September 2013 and borrowing theentire contracted amount, while concurrently repaying part of existing borrowings.

For further details

regarding the changes in interest-bearing debt during the interim period, please refer to page 64 “9.
Interest-bearing debt” under “3. Condensed Interim Consolidated Financial Statements (6) Notes toCondensed Interim Consolidated Financial Statements.”
ii. Deferred tax liabilities
Deferred tax liabilities at the end of the second quarter totaled ¥1,427,332 million, for an increase of ¥1,307,704
million from the previous fiscal year-end.

This was mainly due to recognition of a temporary difference

relating to FCC Licenses, and trademarks with indefinite useful lives following the consolidation of Sprint.

20

SoftBank Corp. Consolidated Financial Report
For the six-month period ended September 30, 2013

          (e) Equity

Total equity was ¥2,525,719 million at the end of the second quarter, for a ¥595,291 million (30.8%) increase
from the previous fiscal year-end.

Of this amount, total equity attributable to owners of the parent increasedby ¥138,142 million (8.6%) from the previous fiscal year-end.

Despite the increase in total equity attributableto owners of the parent, the amount of assets and liabilities also increased following the consolidation of Sprint.
As a result, the equity ratio for equity attributable to owners of the parent decreased by 11.1 percentage points
from the previous fiscal year-end to 11.2%. The components of the change of primary items were as follows:(Equity attributable to owners of the parent)
Total equity attributable to owners of the parent at the end of the second quarter was ¥1,750,898 million, for a¥138,142 million increase from the previous fiscal year-end.
i. Retained earnings at the end of the second quarter totaled ¥1,083,163 million, for a ¥371,075 million increase
from the previous fiscal year-end.

This mainly reflected the recording of net income attributable to ownersof the parent of ¥394,916 million for the interim period, despite a decrease of ¥23,830 million due to thepayment of the year-end dividend for the fiscal year ended March 31, 2013.
ii. Accumulated other comprehensive income at the end of the second quarter totaled ¥25,923 million, for a¥222,103 million decrease from the previous fiscal year-end.

The components of the change were as

follows:
࡮Approximately $17.0 billion was previously accounted for under hedge accounting, out of a foreign currency

forward contract concluded in relation to the acquisition of Sprint. Accumulated other comprehensive
income from this approximately $17.0 billion was derecognized in the second quarter and deducted fromgoodwill initially recognized from the consolidation of Sprint. Please refer to page 56 “(Note 6) Basis
adjustment” under “3. Condensed Interim Consolidated Financial Statements (6) Notes to Condensed
Interim Consolidated Financial Statements 5. Business combinations (2) Sprint f. Fair values of assets,
liabilities, non-controlling interests and goodwill on the acquisition date” for details.
࡮At the previous fiscal year-end, the Company measured the fair value of its shares of WILLCOM, Inc.,

which were classified as available-for-sale financial assets, and recognized the difference between the fairvalue and the acquisition cost as accumulated other comprehensive income, net of tax.

Following theconsolidation of WILLCOM, Inc. in the second quarter, the entire amount of the accumulated othercomprehensive income recognized relating to these shares was derecognized and recognized as income
from remeasurement relating to business combinations in the consolidated statements of income.
࡮Exchange differences on translating foreign operations decreased by the negative exchange differences

relating to Sprint, due to the stronger yen at the end of the second quarter compared to its acquisition date.

(Non-controlling interests)
Non-controlling interests at the end of the second quarter totaled ¥774,821 million, for a ¥457,149 million
increase from the previous fiscal year-end, mainly in conjunction with consolidating Sprint and GungHo.

21

SoftBank Corp. Consolidated Financial Report
For the six-month period ended September 30, 2013

          
b. Cash Flows
Cash flows during the interim period were as follows:

Cash and cash equivalents at the end of the second quarter totaled ¥2,183,600 million, for a ¥744,543 million
increase from the previous fiscal year-end.
(Millions of yen)Six-month Period
Ended Sept. 30, 2012
YoY

Six-month Period
Ended Sept. 30, 2013
(the interim period)

Cash flows from operating activities

446,972

451,229

4,257

Cash flows from investing activities(343,662)(2,102,052)(1,758,390)

Cash flows from financing activities(16,187)2,410,281

2,426,468

159,484(132,404)(291,888)

Change(Reference)
Cash flows from operating activities– capital expenditure(Note 7)Note:
7. Outlays for purchase of property, plant and equipment, and intangible assets(a) Cash Flows from Operating Activities
Net cash provided by operating activities totaled ¥451,229 million (compared with ¥446,972 million provided in
the same period of the previous fiscal year).

Out of this, Sprint’s net cash provided by operating activities (forthe period from July 11 to September 30, 2013) totaled ¥55,910 million.

The primary components were as

follows:
i. Net income totaled ¥428,873 million.
ii. The main items added to net income were ¥349,939 million in depreciation and amortization, ¥177,394
million in income taxes, and ¥107,858 million in finance cost, net.
iii. The main item deducted from net income was income from remeasurement relating to business combinationsof ¥253,886 million.

Please refer to page 50 “(1) GungHo Online Entertainment, Inc.” and page 57 “(3)

WILLCOM, Inc.” under “3. Condensed Interim Consolidated Financial Statements (6) Notes to Condensed
Interim Consolidated Financial Statements 5. Business combinations” for details.
iv. Interest paid was ¥123,600 million.

The increase of ¥98,184 million compared with the same period of theprevious fiscal year was mainly due to the impact of adding the interest expense of Sprint, as well as anincrease in interest expenses for bonds and borrowings at SoftBank Corp.
v. Income taxes paid was ¥183,047 million.

22

SoftBank Corp. Consolidated Financial Report
For the six-month period ended September 30, 2013

          (b) Cash Flows from Investing Activities

Net cash used in investing activities was ¥2,102,052 million (compared with ¥343,662 million used in the same
period of the previous fiscal year).

The primary components were as follows:i. Decrease from acquisition of control over subsidiaries of ¥1,430,677 million was recorded, mainly due to theconsolidation of Sprint and GungHo.
(Reference: Total invested amount for acquisition of Sprint)
The invested amount for the Sprint acquisition and the timing of payments is as follows:
Invested amount

Timing of payment$

Purchase of convertible
bonds(Note 8)
A
Cash investment

B¥ (millions)$3.1 billion

249,333 Oct. 2012

Approx. $18.5 billion

1,875,149 July 2013

Proceeds from settlement offoreign currency forward
contract for acquisition ofcontrol of subsidiaries(Note 9) C
Additional purchases ofshares(Note 10)
D

Approx. $500 million

Total E=A+B-C+D

Approx. $22.1 billion

1,863,913 Cash and cash equivalents
held by Sprint at the time ofacquisition of control
F

Approx. $4.4 billion

447,873–

310,104 –49,535 Aug. – Sept. 2013

Notes:
8. Converted to Sprint shares on July 10, 2013.
9. Proceeds from the settlement of the foreign currency forward contract of approximately $18.5 billion
concluded in relation to acquisition of Sprint.
10. From August 1 to September 16, 2013 the Company acquired approximately 2% of additional shares ofSprint after its consolidation on July 10, 2013. The relevant invested amount is recorded under cash
flow from financing activities.
11. Outlays from acquisition of Sprint, out of “Decrease from acquisition of control over subsidiaries” in
the interim period, amounted to ¥1,427,276 million. This consists of subtracting cash and cash
equivalents held by Sprint at the time of acquisition of control (F) from the approximate $18.5 billion in
cash investment (B).
ii. Outlays for purchase of property, plant and equipment, and intangible assets amounted to ¥583,633 million.
Out of this, Sprint’s outlays for purchase of property, plant and equipment, net and intangible assets (for theperiod from July 11 to September 30, 2013) amounted to ¥186,423 million.

The main reasons of the outlays

were capital expenditures in the Mobile Communications and Sprint segments.
iii. Increase in restricted cash was ¥299,501 million.

This relates to the increase of Sprint’s segregated reserve

required in order to obtain a waiver for its financial covenant.

Please refer to page 66 “(Note 3) Covenants

on interest-bearing debts of Sprint” under “3. Condensed Interim Consolidated Financial Statements (6) Notes
to Condensed Interim Consolidated Financial Statements 9. Interest-bearing debt (1) Components ofinterest-bearing debt” for details.

23

SoftBank Corp. Consolidated Financial Report
For the six-month period ended September 30, 2013

          (c) Cash Flows from Financing Activities

Net cash provided by financing activities was ¥2,410,281 million (compared with ¥16,187 million used in thesame period of the previous fiscal year).

The primary components were as follows:(Items increasing cash flows)i. Proceeds from long-term interest-bearing debt of ¥3,769,040 million, mainly resulted from the following:࡮Proceeds from long-term borrowings of ¥2,179,419 million mainly from borrowings of ¥1.98 trillion

incepted by SoftBank Corp.
࡮Proceeds from issuance of corporate bonds of ¥1,362,682 million.

This was mainly $6.5 billion (¥638,300

million) of straight corporate bonds issued by Sprint, and ¥400,000 million of unsecured straight corporate bondsand ¥324,382 million of foreign currency denominated straight corporate bonds issued by SoftBank Corp.
࡮Proceeds from sale and leaseback of equipment newly acquired of ¥226,939 million.

(Items decreasing cash flows)i. Repayment of long-term interest-bearing debt of ¥1,200,555 million.

This mainly included repayment oflong-term debt of ¥859,335 million and redemption of corporate bonds of ¥195,624 million.
ii. Decrease in short-term interest-bearing debt, net resulted in outlay of ¥89,752 million.
iii. Payment from purchase of subsidiaries' equity from non-controlling interests of ¥49,645 million.

This

mainly included approximately 2% of additional purchase of Sprint shares, after its consolidation on July 10,2013, from August 1 to September 16, 2013 which resulted in outlay of ¥49,535 million.

24

SoftBank Corp. Consolidated Financial Report
For the six-month period ended September 30, 2013

          (3) Qualitative Information Regarding Forecast on the Consolidated Operation Results
The Company projects net sales of at least ¥6 trillion, EBITDA(Note 12) of at least ¥1.5 trillion and operating incomeof at least ¥1 trillion under IFRSs in the fiscal year ending March 31, 2014 (“FY2013”). This operating income
includes gains of ¥253.9 billion in total resulting from the reevaluation of the existing equity interests held in
GungHo Online Entertainment, Inc. and WILLCOM, Inc. at fair value when both companies became subsidiaries.
For the fiscal year ending March 31, 2015 the Company projects net sales of ¥7 trillion, EBITDA of ¥2 trillion
and operating income of ¥1 trillion.

Temporary gains including income from remeasurement relating to businesscombinations are not anticipated to occur.

In combination with continued steady trends in the Mobile

Communications segment, the operation results of the Sprint segment are forecast to show marked progress,
resulting in continued operating income growth (comparison with FY2013 operating income discounts theabovementioned temporary gains).
Forecast for fiscal years ending March 31, 2014 and March 31, 2015.
Fiscal year ending
March 31, 2014
Net sales

at least ¥6 trillion

Fiscal year ending
March 31, 2015
¥7 trillion

EBITDA

at least ¥1.5 trillion¥2 trillion

Operating income
at least ¥1 trillion¥1 trillion(incl. temporary gain)(¥253.9 billion)
(–)
Note:
12. EBITDA: net sales – cost of sales – selling, general and administrative expenses + depreciation andamortization

25

SoftBank Corp. Consolidated Financial Report
For the six-month period ended September 30, 2013

2. Notes for Summary Information(1) Significant changes in scope of consolidation for the six-month period ended September 30, 2013
Specified subsidiary (one company) newly consolidated in the six-month period ended September 30, 2013
Sprint Communications, Inc.
On July 10, 2013, the Company capitalized Sprint Corporation (hereinafter “Sprint”) with approximately $21.6 billion.
In the above process, Sprint Nextel Corporation merged with Starburst III, Inc., which used to be a subsidiary of theCompany, with Sprint Nextel Corporation being the surviving entity and changed its name to Sprint Communications,
Inc. Consequently, Sprint Communications, Inc., the surviving entity, was newly included in scope of consolidation.
Starburst II, Inc., which used to own all the shares of Starburst III, Inc., succeeded Sprint’s business and changed its
name to Sprint Corporation.
As the amount of common stock of Sprint Communications, Inc. which was included in the scope of consolidation ismore than ten-hundreds of the common stock of SoftBank Corp., this is a change of a specified subsidiary with thechange in the scope of consolidation.
(2) Changes in Accounting Policies and Accounting Estimates(Changes in accounting estimates)
For the three-month period ended June 30, 2013, the Company changed assumption and estimates, related to theacquisition of Sprint, and used as material basis for the carrying amount of the convertible bonds issued by Sprint
Nextel Corporation and held by a subsidiary, Starburst II, Inc. The corporate bond was converted to the shares ofSprint shares in July 2013.
Please refer to “Note 12. Finance cost, net, (6) Notes to Condensed Interim Consolidated Financial Statements, 3.
Condensed Interim Consolidated Financial Statements” for details.

26

SoftBank Corp. Consolidated Financial Report
For the six-month period ended September 30, 2013

3. Condensed Interim Consolidated Financial Statements(1) Condensed Interim Consolidated Statements of Financial Position(Millions of yen)

As ofApril 1, 2012
AssetsCurrent assets
Cash and cash equivalents
Trade and other receivables
Other financial assets
Inventories
Other current assets
Total current assets

As ofMarch 31, 2013

As of
September 30, 2013

1,439,057

2,183,600

786,902936,307

1,288,802

10,399229,239

515,678

55,68354,268216,287

1,021,113

Non-current assets
Property, plant and equipment
Goodwill
Intangible assets
Investments accounted for using
the equity method
Other financial assets
Deferred tax assets
Other non-current assets
Total non-current assets
Total assets

27

85,014

127,148

151,966

1,959,111

2,786,019

4,356,333

1,377,185

1,830,615

3,304,788

777,911927,399

1,372,832

340,323

524,893

5,713,816

208,526

208,664

209,574

318,599

634,647

300,976

183,409

175,390

163,51185,490129,182

182,710

3,291,443

4,430,790

11,248,207

5,250,554

7,216,809

15,604,540

SoftBank Corp. Consolidated Financial Report
For the six-month period ended September 30, 2013

(Millions of yen)

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

28

As of
March 31, 2013

As of
September 30, 2013

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

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

1,203,520
1,569,463
4,417
186,505
93,845
408,0112,122,533

2,837,916

3,465,761

1,763,273
37,17014,953
20,64345,351
79,5852,173,725
38,654
14,506
21,765
119,628
80,187

7,636,644
68,97578,349147,194
1,427,332
254,566

1,960,975

2,448,465

9,613,060

4,083,508

5,286,381

13,078,821

213,798
250,767
405,584(22,947)
45,433

238,772
436,704
712,088(22,834)
248,026

238,772
424,800
1,083,163(21,760)
25,923

892,635

1,612,756

1,750,898

274,411317,672

774,821

1,167,046

1,930,428

2,525,719

5,250,554

7,216,809

15,604,540

SoftBank Corp. Consolidated Financial Report
For the six-month period ended September 30, 2013

(2) Condensed Interim Consolidated Statements of Income and Other Comprehensive Income
For the six-month period ended September 30
Condensed Interim Consolidated Statements of Income(Millions of yen)

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Income from remeasurement relating to businesscombination
Other operating loss
Operating income
Finance cost, net
Equity in loss of associates
Income before income tax
Income taxes
Net income
Net income attributable to
Owners of the parent
Non-controlling interests

Earnings per share attributable to owners of the parent
Basic (yen)Diluted (yen)29

Six-month period ended
September 30, 2012

Six-month period ended
September 30, 2013

1,504,644(718,268)

2,598,612(1,424,908)

786,376(357,247)

1,173,704(707,645)-

253,886-(4,875)429,129(37,377)(1,280)390,472(147,944)

715,070(105,023)(3,780)606,267(177,394)

242,528

428,873

214,559
27,969394,916
33,957

242,528

428,873

195.31
192.03331.40330.92

SoftBank Corp. Consolidated Financial Report
For the six-month period ended September 30, 2013

Condensed Interim Consolidated Statements of Comprehensive Income(Millions of yen)Six-month period ended
September 30, 2012
Net income
Other comprehensive income (loss), net of tax
Items that will not be reclassified to profit or loss
Remeasurements of defined benefit plan
Total items that will not be reclassified to profit
or loss
Items that may be reclassified subsequently to
profit or loss
Available-for-sale financial assets
Cash flow hedges
Exchange differences on translating foreign
operations
Share of other comprehensive income ofassociates
Total items that may be reclassified subsequently to
profit or loss
Total other comprehensive loss, net of tax
Total comprehensive income
Total comprehensive income attributable to
Owners of the parent
Non-controlling interests30

Six-month period ended
September 30, 2013

242,528

428,873

1

(11)

1

(11)

(5,285)(47,207)171(140,232)(8,531)(57,408)(713)

 6,895(14,358)(237,952)(14,357)(237,963)

228,171

190,910200,004

172,802

28,167

18,108228,171

190,910

SoftBank Corp. Consolidated Financial Report
For the six-month period ended September 30, 2013

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

Earnings per share attributable to owners of the parent
Basic (yen)Diluted (yen)31

778,700(373,422)

1,717,543(1,009,116)

405,278(179,465)

708,427(484,245)-

103,766-(3,903)225,813(27,972)(3,368)324,045(66,097)(2,697)

194,473(70,526)
123,947

255,251(89,564)
165,687

108,979
14,968

156,654
9,033

123,947

165,687

99.20
97.49

131.44131.25

SoftBank Corp. Consolidated Financial Report
For the six-month period ended September 30, 2013

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

Three-month period ended
September 30, 2013

Net income
Other comprehensive income (loss), net of tax
Items that will not be reclassified to profit or loss
Remeasurements of defined benefit plan
Total items that will not be reclassified to profit
or loss
Items that may be reclassified subsequently to
profit or loss

123,947

165,687

3

(5)

3

(5)

Available-for-sale financial assets
Cash flow hedges
Exchange differences on translating foreign
operations
Share of other comprehensive income ofassociates
Total items that may be reclassified subsequently to
profit or loss
Total other comprehensive loss, net of tax
Total comprehensive income

4,517(70,120)70(165,127)(3,818)(80,404)(9,053)

1,281(8,284)(314,370)(8,281)(314,375)

115,666(148,688)

100,757(142,708)

Total comprehensive income attributable to
Owners of the parent
Non-controlling interests

32

14,909(5,980)115,666(148,688)

SoftBank Corp. Consolidated Financial Report
For the six-month period ended September 30, 2013

(3) Condensed Interim Consolidated Statements of Changes in Equity
For the six-month period ended September 30, 2012
(Millions of yen)
Equity attributable to owners of the parent
Commonstock
213,798

Additional
paid-in
capital250,767

Retainedearnings
405,584

Treasurystock(22,947)--

214,559---

Accumulated
othercomprehensive
incomeNoncontrollinginterests Total equity
274,411
1,167,046

45,433

Total
892,635--

214,559

27,969242,528--(14,555)(14,555)

198(14,357)-

214,559-(14,555)

200,004

28,167228,171--(43,941)--(43,941)(11,832)(55,773)

-

-

1

-

(1)

-

-

-

Issuance of new shares
Purchase and disposal oftreasury stock
Changes in interests in
subsidiaries
Changes in associates’interests in theirsubsidiaries
Decrease by exercise ofstock acquisition right
Share-based paymenttransactions
Other
Total transactions withowners and othertransactions

7,223

13,324---

20,547-

20,547

-

5

-

74

-

79

-

79

-

(255)

-

-

-

(255)

(14)

(269)

-

(51,222)---(51,222)-(51,222)-(6,347)---(6,347)-(6,347)

-

23

-

-

-

23

-

23

-

-

-

-

-

-

(613)

(613)

7,223

(44,472)(43,940)74(1)(81,116)(12,459)(93,575)

As of September 30, 2012

221,021

206,295

576,203(22,873)

30,877

1,011,523

290,119

1,301,642

As of April 1, 2012
Comprehensive income
Net income
Other comprehensive
loss
Total comprehensive
incomeTransactions with owners
and other transactions
Cash dividends
Transfer of accumulated
other comprehensive
income to retained
earnings

33

SoftBank Corp. Consolidated Financial Report
For the six-month period ended September 30, 2013

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

As of April 1, 2013
Comprehensive income
Net income
Other comprehensive
loss
Total comprehensive
incomeTransactions withowners and othertransactions
Cash dividends
Transfer of accumulated
other comprehensive
loss to retained
earnings
Purchase and disposalof treasury stock
Changes from businesscombination
Changes in interestsin subsidiaries
Share-based paymenttransactions
Other
Total transactions
with owners and othertransactions
As of September 30, 2013

Additional
Commonpaid-in
Retained
stock
capitalearnings
238,772
436,704 712,088

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

Total
1,612,756

Noncontrollinginterests
317,672

Total equity
1,930,428--

394,916--

394,916

33,957

428,873

-

-

-

-

(222,114)(222,114)(15,849)(237,963)--

394,916-(222,114)

172,802

18,108

190,910--(23,830)-(23,830)(13,556)(37,386)

-

-

(11)

-

11

-

-

-

-

72

-

1,074

-

1,146

-

1,146

-

-

-

-

-

-

486,793486,793-(14,343)---(14,343)(33,880)(48,223)

-

2,367

-

-

-

2,367

-

2,367

-

-

-

-

-

-

(316)

(316)

-

(11,904)(23,841)

1,074

11

(34,660)

439,041404,381424,800 1,083,163(21,760)

25,923

1,750,898

774,8212,525,719

238,77234

SoftBank Corp. Consolidated Financial Report
For the six-month period ended September 30, 2013

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

Cash flows from operating activities
Net income
Depreciation and amortization
Equity in loss of associates
Finance cost, net
Income from remeasurement relating to businesscombination
Income taxes(Increase) decrease in trade and other receivables(Decrease) increase in trade and other payables

Six-month period ended
September 30, 2012

Six-month period ended
September 30, 2013

242,528

428,873

158,644

349,939

1,280

3,780

37,142

107,858-(253,886)

147,944

177,394(2,360)27,001(13,542)

19,658

Other

14,973(108,105)

Subtotal

586,609752,512Interest and dividends received
Interest paid
Income taxes paid
Net cash provided by operating activities
Cash flows from investing activities
Purchase of property, plant and equipment, andintangible assets
Payments for acquisition of investments
Proceeds from sales/redemption of investments
Decrease from acquisition of control oversubsidiaries
Proceeds from settlement of foreign currency forward
contract for acquisition of control of subsidiaries
Increase in restricted cash
Other
Net cash used in investing activities
Cash flows from financing activities
Increase (decrease) in short-term interest-bearing
debt, net
Proceeds from long-term interest-bearing debt
Repayment of long-term interest-bearing debt
Payment from purchase of subsidiaries' equity from
non-controlling interests
Cash dividends paid
Cash dividends paid to non-controlling interests
Payments for preferred stocks, stock acquisition rights,
and long-term debt of subsidiaries
Other
Net cash (used in) provided by financing activities
Effect of exchange rate changes on cash and cash
equivalents
Increase (decrease) in cash and cash equivalents
Cash and cash equivalents at the beginning of the period
Cash and cash equivalents at the end of the period


35

1,533

5,364

(25,416)(123,600)(115,754)(183,047)

446,972

451,229(287,488)(583,633)(57,202)(45,234)

13,612

85,696(2,039)(1,430,677)-

310,104(299,501)(10,545)(138,807)(343,662)(2,102,052)

97,638(89,752)

599,367

3,769,040(456,598)(1,200,555)(367)(49,645)(43,767)(23,812)(12,115)(13,411)(200,444)-

99

18,416(16,187)2,410,281(1,306)(14,915)85,817744,543

1,021,113

1,439,057

1,106,930

2,183,600



SoftBank Corp. Consolidated Financial Report
For the six-month period ended September 30, 2013

(5) Significant Doubt about Going-Concern Assumption
There are no applicable items for the six-month period ended September 30, 2013.

(6) Notes to Condensed Interim Consolidated Financial Statements
1. Reporting entity
SoftBank Corp. is a corporation domiciled in Japan. These condensed interim consolidated financial statements
are composed of SoftBank Corp. and its subsidiaries (“the Company”). The Company engages in various
businesses in the information industry, with its base in the Mobile communications segment, the Sprint segment,
the Fixed-Line Telecommunications segment, and the Internet segment. The Sprint segment was added to ourbusiness as a result of the following acquisition during the three-month period ended September 30, 2013.
On July 10, 2013, the Company acquired approximately 78% of the shares of Sprint Corporation (previously
Sprint Nextel Corporation) (hereinafter (“Sprint”)), and Sprint became a subsidiary of the Company.
In addition, the Company additionally acquired approximately 2% of Sprint shares from August 1 to September 16,
2013. As a result, the Company’s ownership in the outstanding Sprint common stock became approximately
80% as of September 30, 2013.
The details are described in “(2) Sprint” in “Note 5. Business combinations” and in “(1) Description of reportablesegment” in “Note 6. Segment information.”
2. Basis of preparation of condensed interim consolidated financial statements(1) Compliance with IFRSs and first-time adoption
These condensed interim consolidated financial statements of the Company have been prepared in accordancewith International Accounting Standard 34 “Interim Financial Reporting” pursuant to Article 93 of the Regulation
Concerning Terminology, Forms and Preparation Methods of Quarterly Consolidated Financial Statements(Cabinet Office Ordinance No. 64, 2007), as the Company meets the criteria of a “Specified company” defined
under Article 1-2, Paragraph 1, Item 1 of the Regulation Concerning Terminology, Forms, and Preparation
Methods of Consolidated Financial Statements (Ministry of Finance Ordinance No. 28, 1976).
The Company has prepared the condensed interim consolidated financial statements in accordance with IFRSs
from the three-month period ended June 30, 2013, the first quarter of the year ending March 31, 2014. The dateof transition to IFRSs is April 1, 2012. The Company applied IFRS 1 “First-Time Adoption of International
Financial Reporting Standards” for the transition to IFRSs. The effect of the transition to IFRSs on the
Company’s financial position, results of operations, and the cash flows is provided in “Note 15. First-time
adoption of IFRSs.”(2) Basis of measurement
These condensed interim consolidated financial statements have been prepared on the historical cost basis, except
for certain items, such as financial instruments, that are measured at fair value, as explained in “Note 3. Significant
accounting policies.”(3) Presentation currency and unit of currency
These condensed interim consolidated financial statements have been presented in Japanese yen, which is thecurrency of the primary economic environment of SoftBank Corp. (“functional currency”), and are rounded off tothe nearest million yen.
(4) New standards and interpretations not yet adopted by the Company
The Company has not early adopted standards and interpretations (including IFRS 9 “Financial Instruments”) thathave not been enforced as of September 30, 2013, in the preparation of these condensed interim consolidated

36





SoftBank Corp. Consolidated Financial Report
For the six-month period ended September 30, 2013

financial statements. The Company is currently evaluating potential impacts that application of these will have on
the consolidated financial statements and it is not possible to estimate the amount of these impacts.
3. Significant accounting policies
The following significant accounting policies have been applied consistently to all periods presented in thesecondensed interim consolidated financial statements (including the consolidated statement of financial position at thedate of transition to IFRSs) unless otherwise mentioned elsewhere.
(1) Basis of consolidationa. Subsidiaries
A subsidiary is an entity that is controlled by SoftBank Corp.
The Company controls an entity when the Company is exposed to, or has rights to, variable returns from its
involvement with the entity and has the ability to affect those returns through its power over the entity.
Subsidiary’s financial statements are consolidated from the date when control is acquired (“acquisition date”)
until the date when the control is lost.
When necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting
policies in line with those used by the Company.
Non-controlling interests consist of those interests at theacquisition date and any adjustments for subsequentchanges in those interests.
Total comprehensive income of subsidiaries is generally attributed to the owners of the parent and to thenon-controlling interests, even if this results in the non-controlling interests having a deficit balance.
All intragroup balances and transactions and unrealized gain or loss arising from intragroup transactions are
eliminated on consolidation.
Changes in the Company’s ownership interests in subsidiaries that do not result in the Company’s losing
control over the subsidiaries are accounted for as equity transactions. The carrying amounts of theCompany's interests and the non-controlling interests are adjusted to reflect the changes in their interests in thesubsidiaries.
Any difference between the amount by which the non-controlling interests are adjusted and the fair value ofthe consideration paid or received is recognized directly in equity and attributed to owners of the parent.
When SoftBank Corp. loses control of a subsidiary, a gain or loss is calculated as the difference between:• The aggregate of the fair value of the consideration received and the fair value of any retained interest, and:• The net carrying amount of the assets (including goodwill), liabilities, and non-controlling interests of thesubsidiary when a control is lost.
Any amounts previously recognized in other comprehensive income in relation to the former subsidiaries arereclassified to profit or loss.
b. Associates
An associate is an entity over which SoftBank Corp. has significant influence in the financial and operating
policy decisions but does not have control or joint control.
Investments in associates are accounted for using the equity method and initially recognized at cost. The
investment is adjusted thereafter to recognize the Company's share of the profit or loss and othercomprehensive income from the date of acquisition to the date of loss of significant influence.

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SoftBank Corp. Consolidated Financial Report
For the six-month period ended September 30, 2013



When the loss of an associate exceeds the Company's interest in that company, long-term interests that, in
substance, form part of the net investment in the company are decreased to zero, and no additional loss isrecognized except when the Company incurs legal or constructive obligations to or makes payments on behalfof the associate.
Unrealized gains or losses on intercompany transactions with associates are recoded as the subtraction or the
addition to the carrying amount of the investments only to the extent of the Company’s interests in theassociates.
Any excess in the cost of acquisition of an associate over the Company’s share of the net fair value of theidentifiable assets and liabilities recognized at the date of acquisition is recognized as goodwill, which isincluded within the carrying amount of the investments accounted for using the equity method.
Because goodwill that forms part of the carrying amount of an investment in associates is not separately
recognized, it is not tested for impairment separately. Instead, the entire carrying amount of the investment
in associates, including goodwill, is tested for impairment as a single asset whenever objective evidence
indicates that the investment may be impaired.
The Company applies equity method to the financial statements of Alibaba Group Holding Limited, anassociate of the Company, on a three-month time lag, as it is impracticable to conform the reporting period of
Alibaba due to the contract with Alibaba. Adjustments are made for significant transactions or events which
occurred during the intervening period and which were publicly announced by Alibaba.
(2) Business combinations
Business combinations are accounted for using the acquisition method at the acquisition date.
The consideration transferred in a business combination is measured as the sum of the acquisition date fair valuesof the assets transferred by the Company, liabilities incurred by the Company from the former owners of theacquiree, and the equity interests issued by the Company. Acquisition-related costs are expensed as incurred.
At the acquisition date, the identifiable assets acquired and the liabilities assumed are recognized at their fairvalue, except that:• Deferred tax assets or liabilities and assets or liabilities related to employee benefits are recognized andmeasured in accordance with IAS 12 “Income Taxes” and IAS 19 “Employee Benefits,” respectively;• Liabilities or equity instruments related to share-based payment arrangements of the acquiree or share-based
payment arrangements of the Company entered into to replace share-based payment arrangements of theacquiree are measured in accordance with IFRS 2 “Share-based Payment” at the acquisition date; and• Assets or disposal groups that are classified as held for sale are measured in accordance with IFRS 5“Non-current Assets Held for Sale and Discontinued Operations.”
The excess of the consideration transferred and the amount of any non-controlling interest in the acquiree overthe fair value of the identifiable net assets acquired at the acquisition date is recorded as goodwill. If theconsideration transferred and the amount of any non-controlling interest in the acquiree is less than the fair valueof the identifiable net assets of the acquired subsidiary, the excess is recognized immediately as a bargain
purchase gain.
On an acquisition-by-acquisition basis, the Company chooses a measurement basis of non-controlling interests ateither fair value or the present ownership instruments’ proportionate share in the recognized amounts of theacquiree’s identifiable net assets. When a business combination is achieved in stages, the Company's
previously held interest in the acquiree is remeasured to fair value at the acquisition date and the resulting gain or
loss, if any, is recognized in profit or loss.
Amounts arising from changes in the value of interests in the acquiree prior to the acquisition date that havepreviously been recognized in other comprehensive income are recognized in profit or loss.

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SoftBank Corp. Consolidated Financial Report
For the six-month period ended September 30, 2013

If the initial accounting for a business combination is incomplete by the end of the reporting period in which the
combination occurs, the Company reports in its financial statement provisional amounts for the items for which
the accounting is incomplete. The Company retrospectively adjusts the provisional amounts recognized at theacquisition date as the adjustment during the measurement period when new information about facts andcircumstances that existed as of the acquisition date and, if known, would have affected the recognized amounts
for the business combination. The measurement period shall not exceed one year from the acquisition date.
The Company has adopted the exemption in IFRS 1 and elected not to apply IFRS 3 “Business Combinations”
retrospectively to business combinations that occurred before April 1, 2012 (the date of transition to IFRSs).
Goodwill arising in business combinations that occurred before the date of transition to IFRSs is carried over at
the carrying amount under the previous accounting standard (JGAAP) as of the date of transition to IFRSs andrecorded by that amount after impairment test.
(3) Foreign currency translationa. Transactions denominated in foreign currencies
The financial statements of each company in the Company are prepared in the functional currency.
Transactions in currencies other than the entity's functional currency (foreign currencies) are translated at therates of exchange prevailing at the dates of the transactions.
Monetary items denominated in foreign currencies are translated at the rates prevailing at the end of the period.
Non-monetary items carried at fair value that are denominated in foreign currencies are translated into thefunctional currency at the rates prevailing at the date when the fair value was measured.
Exchange differences arising from translation are recognized in profit or loss, except for exchange differences
arising from non-monetary available-for-sale financial assets through other comprehensive income and cash
flow hedges are recognized in other comprehensive income.
b. Foreign operations
For the purposes of presenting consolidated financial statements, the assets and liabilities of the Company's
foreign operations (including the adjustments for goodwill and fair value arising from acquisitions) aretranslated into Japanese yen using exchange rates prevailing at the end of each period.
Income, expenses and cash flows are translated into Japanese yen by using the average exchange rates for thequarter. However, when their translated results do not approximate the calculation results by the exchange
rates at the dates of the transactions, the exchange rates at the transaction dates are used for the translation.
Please refer to “Note 10. Exchange rate” for the exchange rates used in the translation.
Exchange differences arising from translating the financial statements of foreign operations are recognized inother comprehensive income and cumulative differences are included in accumulated other comprehensive
income.
These cumulative differences are reclassified from equity to profit or loss when the Company loses control orsignificant influence over the foreign operation.
With the adoption of the exemption in IFRS 1, the Company transferred all of the accumulated exchange
differences to retained earnings at the date of transition to IFRSs.
(4) Financial instruments
a. Financial instruments
Financial assets and financial liabilities are recognized when the Company becomes a party to the contract
provision of the instrument.

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SoftBank Corp. Consolidated Financial Report
For the six-month period ended September 30, 2013

Financial assets and financial liabilities are measured at fair value at initial recognition. Transaction costs thatare directly attributable to the acquisition or issuance of financial assets and financial liabilities other thanfinancial assets at fair value through profit or loss (“financial assets at FVTPL”) and financial liabilities at fairvalue through profit or loss (“financial liabilities at FVTPL”) are added to the fair value of the financial assets
or deducted from the fair value of financial liabilities on initial recognition. Transaction costs directly
attributable to the acquisition of financial assets at FVTPL and financial liabilities at FVTPL are recognized in
profit or loss.
b. Non-derivative financial assets
Non-derivative financial assets are classified into “financial assets at FVTPL”, “held-to-maturity investments”,“loans and receivables,” and “available-for-sale financial assets.” The classification depends on the natureand purpose of the financial assets and is determined at the time of initial recognition.
All purchase and sales of financial assets in a regular way are recognized and derecognized on a trade datebasis. The purchase and sales in a regular way refer to acquiring or disposing financial assets under a contractthat requires the delivery of assets within a time frame established by regulation or convention in themarketplace.
(a) Financial assets at FVTPL
The Company designates a financial asset as a financial asset at FVTPL upon initial recognition, if:㨯 The financial assets are managed in accordance with the Company's documented risk management
policy or investment strategy, and:
㨯 Its performance is reviewed on the fair value basis by the Company’s management to make decisions
about the investment plan.
After initial recognition, financial assets at FVTPL are stated at fair value, with any gains or loss arisingfrom changes in fair value, dividends, or interests received recognized in profit or loss.
(b) Held-to-maturity investments
Non-derivative financial assets with fixed or determinable payments and fixed maturity dates and that theCompany has the positive intent and ability to hold to maturity are classified as “held-to-maturity
investments.”
Subsequent to initial recognition, held-to-maturity investments are measured at amortized cost using theeffective interest method less any impairment. Interest income based on the effective interest rate isrecognized in profit or loss.
(c) Loans and receivables
Non-derivative financial assets with fixed or determinable payments that are not quoted in an active market
are classified as “loans and receivables.”Subsequent to initial recognition, loans and receivables are measured at amortized cost using the effective
interest method, less any impairment. Interest income based on the effective interest rate is recognized in
profit or loss.
(d) Available-for-sale financial assets
Non-derivative financial assets are classified as “available-for-sale financial assets,” if:࡮those are designated as “available-for-sale financial assets”; or࡮those are classified neither as “financial assets at FVTPL,” “held-to-maturity investments,” nor “loans
and receivables.”Subsequent to initial recognition, available-for-sale financial assets are measured at fair value and gains orlosses arising from changes in fair value are recognized in other comprehensive income. Exchange
differences arising on monetary financial assets classified as available-for-sale financial assets, interest
income calculated using the effective interest method relating to available-for-sale financial assets and

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SoftBank Corp. Consolidated Financial Report
For the six-month period ended September 30, 2013



dividends are recognized in profit or loss.
(e) Impairment of financial assets
Financial assets, other than those at FVTPL, are assessed for any objective evidence of impairment at theend of each quarter. Financial assets are impaired when there is objective evidence of impairment, as aresult of loss events that occurred after the initial recognition of the financial assets and these events haveadversely affected the estimated future cash flows of the financial assets that can be reliably estimated.
For available-for-sale equity instruments, a significant or prolonged decline in the fair value below the cost
is considered to be objective evidence of impairment. In addition, objective evidence of impairment of all
financial assets could include:• Significant financial difficulty of the issuer or borrower; or• Breach of contract, such as a default or delinquency in interest or principal payments; or• High possibilities of borrowers’ bankruptcy or entering financial reorganization; or• Disappearance of an active market for the financial assets.
The Company assesses the existence of objective evidence of impairment individually for separately
significant assets or collectively for assets with no individual significance.
When there is objective evidence of impairment on loans and receivables or held-to-maturity investments,
the difference between the asset's carrying amount and the present value of estimated future cash flows,
discounted at the original effective interest rate, is recognized in profit or loss as an impairment loss. The
impairment loss is recognized through the use of an allowance account, and the carrying amount of a loan
and receivable is written off against the allowance account when it is considered uncollectible. The
carrying amount of held-to-maturity investments is reduced by the impairment loss directly. If, in a
subsequent period, the amount of the impairment loss decreases and the decrease can be related objectively
to an event occurring after the impairment was recognized, the previously recognized impairment loss isreversed through profit or loss to the extent that the carrying amount of the financial asset does not exceed
what the amortized cost would have been had the impairment not been recognized.
When there is objective evidence that an available-for-sale financial asset is impaired, previously recognizedaccumulated other comprehensive income is transferred to profit or loss. With regards to equity
instruments classified as available-for-sale financial assets, impairment losses are not reversed.
(f) Derecognition of financial assets
The Company derecognizes a financial asset when the contractual rights to the cash flows from the financial
asset expire or when it transfers the financial asset and substantially all the risks and rewards of ownershipof the financial asset.
c. Non-derivative financial liabilities
The Company's non-derivative financial liabilities include interest-bearing debt and trade and other payables.
These financial liabilities are measured at amortized cost using the effective interest method, subsequent toinitial recognition.
The Company derecognizes financial liabilities when the Company's obligations are discharged, canceled or
expired.
d. Derivatives and hedge accounting(a) Derivatives
The Company is engaged in derivative transactions, including foreign currency forward contract and interest
rate swaps in order to manage its exposure to foreign exchange rate and interest rate risks.
Derivatives are initially recognized at fair value at the date the derivative contracts are entered into and aresubsequently measured at their fair values at the end of each quarter. Changes in the fair value ofderivative are recognized in profit or loss immediately unless the derivative is designated and effective as a

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SoftBank Corp. Consolidated Financial Report
For the six-month period ended September 30, 2013



hedging instrument. Derivative financial assets not designated as hedging instruments are classified into“financial assets at FVTPL” and derivative financial liabilities not designated as hedging instruments areclassified into “financial liabilities at FVTPL.”(b) Hedge accounting
The Company designates certain derivative transactions as hedging instruments and accounts for them ascash flow hedges.
At the inception of the hedge, the Company formally designates and documents the hedge relationshipqualifying for hedge accounting, along with its risk management objectives and its strategy for undertaking
various hedge transactions. At the inception of the hedge and on an ongoing basis, the Company evaluates
whether the hedging instrument is highly effective in offsetting changes in fair values or cash flows of therelevant hedged item.
The effective portion of changes in the fair value of derivatives that are designated and qualifying as cash
flow hedges is recognized in other comprehensive income and accumulated in equity. Accumulated othercomprehensive income is transferred to profit or loss through a line item relating to the hedged item in the
consolidated statements of income, in the periods when the cash flows from the hedged item affect profit orloss. Any ineffective portion of changes in fair value of derivatives is recognized immediately in profit orloss.
When the hedged forecasted transaction subsequently results in the recognition of a non-financial asset or a
non-financial liability, the Company removes the associated gains or losses previously recognized inaccumulated other comprehensive income and includes them in the initial amount of the cost of thenon-financial asset or non-financial liability (Basis adjustment).
Hedge accounting is discontinued when the Company revokes the hedging relationship, when the hedging
instrument expires or is sold, terminated or exercised or when hedge no longer meets the criteria for hedge
accounting. When hedge accounting is discontinued, any gains or losses recognized in accumulated othercomprehensive income remains in equity and is reclassified to profit or loss when the forecasted transaction
is ultimately recognized in profit or loss. When a forecasted transaction is no longer expected to occur,
the gains or losses recognized in accumulated other comprehensive income is reclassified immediately to
profit or loss.
(c) Embedded derivatives
Derivatives embedded in non-derivative host contracts (“embedded derivatives”) are separated from thehost contracts and accounted for as separate derivatives when their economic characteristics and risks are
not closely related to those of the host contracts and the whole financial instruments, including embedded
derivatives, are not measured at FVTPL.
e. Compound instruments
Compound instruments issued by the Company (convertible bond) are classified as liability and equity
components in accordance with their contractual arrangements. Upon initial recognition of compound
instruments, the liability component is measured based on the fair value of similar liabilities with no equity
conversion option, and the equity component is measured as the difference between the fair value of thecompound instrument as a whole and the fair value of the liability component.
Transaction costs are allocated to the liability and equity components in proportion to the initial carrying
amounts and the cost related to the equity component is deducted from equity.
Subsequent to initial recognition, the liability component is measured on an amortized cost basis using theeffective interest method. The equity component is not measured subsequent to initial recognition.

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SoftBank Corp. Consolidated Financial Report
For the six-month period ended September 30, 2013

f. Offsetting financial assets and financial liabilities
Financial assets and financial liabilities are offset and the net amounts are presented in the statement offinancial position when, and only when, the Company currently has a legally enforceable right to set off therecognized amounts, and intends either to settle on a net basis or to realize the assets and settle the liabilities
simultaneously.
(5) Cash and cash equivalents
Cash and cash equivalents consist of cash, demand deposits and short-term investments with maturities ofthree-months or less that are readily convertible to cash and subject to insignificant risk of change in value.
(6) Inventories
Inventories are stated at the lower of cost or net realizable value. Inventories mainly consist of mobile
handsets and accessories. Their costs comprise all costs of purchase and other costs incurred in bringing theinventories to their present location and condition.
The costs are mainly computed on the moving-averagemethodNet realizable value is the estimated selling price in the ordinary course of business, less estimated costs
necessary to make the sale.
(7) Property, plant and equipment
Property, plant and equipment are measured on a historical cost basis, less accumulated depreciation andaccumulated impairment losses. Historical cost includes costs directly attributable to the acquisition of theasset and the initial estimate of costs related to disassembly, retirement and site restoration.
Property, plant and equipment are depreciated mainly using the straight-line method over the estimated useful
lives of each component. The depreciable amount is computed as the cost of an asset, less its residual value.
Land and construction in progress are not depreciated.
The estimated useful lives of major component of property, plant and equipment are as follows:
Buildings and structures
Buildings
30 - 50 years
 Other
5 - 15 years
Telecommunications equipment
Wireless equipment, switching equipment, andother network equipment
3 - 15 years
15- 42 years
TowersOther
5 - 40 years
Other
2 - 10 years

The depreciation methods, useful lives, and residual values of assets are reviewed at the end of each fiscal year,
and applied prospectively as a change in an accounting estimate if there is such a change.
Assets held under finance leases are depreciated over their estimated useful lives when there is certainty thatownership will be obtained by the end of the lease term. However, when there is no certainty that ownershipwill be obtained by the end of the lease term, assets are depreciated over the shorter of the lease term or theirestimated useful lives.
(8) Goodwill
The measurement of goodwill upon its initial recognition is described in “(2) Business combinations” in “Note3. Significant accounting policies. Goodwill is measured at cost less accumulated impairment losses.
Goodwill is not amortized, and is tested for impairment when there is an indication of impairment incash-generating units to which goodwill has been allocated, and annually regardless of any indication of

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SoftBank Corp. Consolidated Financial Report
For the six-month period ended September 30, 2013

impairment. The Company’s policy for impairment on goodwill is described in “(11) Impairment of tangible
assets, intangible assets and goodwill” in “Note 3. Significant accounting policies.”
The Company's policy for goodwill arising on the acquisition of an associate is described in “(1) Basis of
consolidation” in “Note 3. Significant accounting policies.”(9) Intangible assets
Intangible assets are measured on a historical cost basis at cost less accumulated amortization and accumulated
impairment losses.
Intangible assets acquired separately are measured at cost upon initial recognition. Intangible assets acquired
in a business combination are recognized separately from goodwill upon initial recognition and are measured atfair value at the acquisition date. Any internally generated research and development expenditure isrecognized as an expense in the period in which it is incurred, except for expenditures on development
activities eligible for capitalization (internally generated intangible assets). The amount initially recognized
for internally generated intangible assets is the sum of the expenditure incurred from the date when theintangible asset first meets all of the capitalization criteria to the date the development is completed.
There are intangible assets with finite useful lives and intangible assets with indefinite useful lives.
The intangible assets with finite useful lives are amortized over the estimated useful lives. Amortization of
the customer relationships is calculated by the sum-of-the-digits method and intangible assets with finite useful
lives other than customer relationships are amortized by the straight-line method.
The estimated useful lives of major categories of intangible assets with finite useful lives are as follows:
Software
Software related to wireless equipment
5 - 10 years
Other
3 - 5 years
Customer relationships
4 - 9 years
Favorable lease contracts
3 - 23 years
Game titles
3 years
Trademarks (with finite useful lives)
33 yearsOther
3 -20 years

Amortization methods, useful lives, and residual values of assets are reviewed at the end of each fiscal year
and applied prospectively as a change in an accounting estimate if there is such a change.
Favorable lease contracts are recognized as intangible assets based on the estimated fair value of favorable
portion of future cash flows, at the time of business combinations if the terms of operating lease contracts inwhich the acquiree is the lessee are favorable compared to market terms.
Intangible assets with indefinite useful lives are as follows:
Licenses using specific frequency spectrum granted by Federal Communications Commission(“FCC Licenses”)
Trademarks (with indefinite useful lives)
As long as the Company acts within the requirements and constraints of the regulatory authorities, the renewal
and extension of FCC Licenses are reasonably certain at minimal cost. Since any technology being
developed that would render this spectrum obsolete is not known, it is determined that licenses, for which theCompany has an expectation of future use, are indefinite-lived intangible assets. “Sprint” and “Boost Mobile”
trademarks have also been identified as indefinite-lived intangible assets as they can be legally used
continuously as long as the business continues.

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SoftBank Corp. Consolidated Financial Report
For the six-month period ended September 30, 2013

The intangible assets with indefinite useful lives and the intangible assets that are not yet available for use are
not amortized. Refer to “(11) Impairment of tangible assets, intangible assets and goodwill” in “Note 3.
Significant accounting policies” for impairment of intangible assets.
(10) Leases
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks andrewards of ownership of assets to the lessee. All other leases are classified as operating leases.
The assessment of whether an arrangement is a lease or contains a lease is made on a basis of all of the facts
and circumstances at the inception of the arrangement.
a. Finance leases(The Company as lessee)
The Company has leased assets, including the FUKUOKA YAHUOKU! DOME, wireless equipment,
switching equipment, power supply systems and transmission facilities. At the inception of lease, theCompany initially recognizes finance leases as assets and the lease obligation at the amount equal to the fairvalue of the leased property or, if lower, at the present value of the minimum lease payments.
Subsequent to initial recognition, the accounting policy for assets held under finance leases are consistent
with that of assets that are owned. Lease payments are apportioned between finance expenses andreduction of the lease obligation so as to achieve a constant rate of interest on the remaining balance of theliability.
b. Operating leases(The Company as lessee)
Gross operating lease payments are recognized as an expense on a straight-line basis over the term of therelevant lease.
(The Company as lessor)
Gross operating lease revenues are recognized as revenue on a straight-line basis over the term of therelevant lease.
(11) Impairment of property, plant and equipment, intangible assets and goodwill
a. Impairment of property, plant and equipment and intangible assets
At the end of each quarter, the Company determines whether there is any indication that property, plant andequipment and intangible assets may be impaired.
If any such indication exists, the recoverable amount of the asset is estimated. When it is not possible toestimate the recoverable amount of an individual asset, the Company estimates the recoverable amount of
the cash-generating unit to which the asset belongs. A cash-generating unit is the smallest identifiablegroup of assets that generates cash inflows that are largely independent of the cash inflows from other assets
or groups of assets.
The intangible assets with indefinite useful lives and the intangible assets that are not yet available for use
are tested for impairment annually regardless of whether there is any indication of impairment.
The recoverable amount is the higher of fair value less costs to sell or value in use. In assessing value in
use, the estimated future cash flows are discounted to their present value using a pretax discount rate thatreflects the time value of money and the risks specific to the asset.
If the recoverable amount of an asset or cash-generating unit is estimated to be less than its carrying amount,the carrying amount of the asset or cash-generating unit is reduced to its recoverable amount, and an
impairment loss is recognized in loss.

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SoftBank Corp. Consolidated Financial Report
For the six-month period ended September 30, 2013

b. Impairment of goodwill
At the end of each quarter, the Company determines whether there is any indication that goodwill may be
impaired.
Goodwill is allocated to each of the cash-generating units or groups of cash-generating units that are
expected to benefit from the synergies arising from the combination, and it is tested for impairment annuallyregardless of any indication of impairment, and when there is an indication that the cash-generating unit may
be impaired, and if, at the time of the impairment test, the recoverable amount of the cash-generating unit isless than its carrying amount, the impairment loss is allocated first to reduce the carrying amount of any
goodwill allocated to the cash-generating unit or groups of cash-generating units and then to the other assets
pro rata based on the carrying amount of each asset in the unit or groups of cash-generating units.
Any impairment loss for goodwill is recognized directly in loss and is not reversed in subsequent periods.
c. Reversal of impairment
At the end of each quarter, the Company determines whether there is any indication that an impairment loss
recognized in prior years for assets other than goodwill have decreased or extinguished. If such indicationof a reversal of an impairment loss exists, the recoverable amount of the asset or cash-generating unit isestimated. If the recoverable amount of an asset or cash-generating unit is estimated to be greater than its
carrying amount, a reversal of an impairment loss is recognized, to the extent the increased carrying amount
does not exceed the lower of the recoverable amount or the carrying amount (net of depreciation andamortization) that would have been determined had no impairment loss been recognized.
(12) Retirement benefits
Defined contribution plans are post-employment benefit plans under which an employer pays fixed
contributions into a separate fund and will have no legal or constructive obligations to pay further contributions.
Defined benefit plans are post-employment benefit plans other than defined contribution plans.
The Company primarily adopts defined contribution pension plans for its employees.
SoftBank Mobile Corp. and SoftBank Telecom Corp. have frozen the defined benefit lump-sum plans as ofMarch 2007 and 2006 respectively. Liabilities for the frozen defined benefit lump-sum plans are recognized
as defined benefit liabilities until they are paid in the form of lump sum at the time of future retirement of
employees.
Sprint has frozen the defined benefit pension plans as of December 2005. Liabilities for defined benefit
pension plans are recognized as defined benefit liabilities until they are paid as pension after the time ofretirement of employees.
a. Defined contribution plans
Contributions paid for defined contribution plans are recognized as expenses in the period in which theemployees render the related service. Contributions payable are recognized as liabilities.
b. Defined benefit plans
The liability recognized in respect of the defined benefit plans (the defined benefit liability) is the present
value of the defined benefit obligation less the fair value of plan assets at the end of the quarter.
The defined benefit obligation is determined by independent actuaries using the projected unit credit method,and its present value is determined applying a discount rate based on the yield curve of high-quality
corporate bonds over the approximate period of the benefit payments.
Defined benefit cost includes service cost, net interest on the net defined benefit liability (asset), andre-measurements of the net defined benefit liability (asset). Service cost and net interest are recognized in
net profit or loss. Net interest is determined using the discount rate described above.

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SoftBank Corp. Consolidated Financial Report
For the six-month period ended September 30, 2013

The liabilities for defined benefit plans frozen due to the transition to defined contribution plans arecalculated on the basis of retirement benefits vested at the time of the transition of the plans. Therefore,
service cost is not incurred for those defined benefit plans.
In the Company, remeasurements, which comprises actuarial gains and losses and the return on plan asset(excluding amounts included in net interest), are recognized in other comprehensive income and transferred
to retained earnings immediately.
The defined benefit liability at the end of each quarter end is based on estimated calculation with reasonableestimate, considering the actuarial calculation used at prior fiscal year end.
(13) Provisions
Provisions are recognized when the Company has a present legal or constructive obligation as a result of a past
event, it is probable that the Company will be required to settle the obligation, and a reliable estimate can bemade of the amount of the obligation.
Provisions are measured using the estimated future cash flows, discounted using a pretax rate reflecting thetime value of money and the specific risks of the liability, after taking into account the risks and uncertainties
surrounding the obligation at the end of the quarter.
The Company recognizes asset retirement obligations and restructuring provision as provisions.


Restructuring provisions are recognized when the Company has a detailed formal plan for the restructuring andhas raised a valid expectation to those who will be affected that the Company will carry out the restructuring bystarting to implement the plan or announcing its main features of the plan.

(14) Treasury stock
When the Company reacquires its own equity share capital (“treasury stock”), the consideration paid, including
any directly attributable increments costs (net of income taxes), is deducted from equity. No gain or loss isrecognized on the purchase, sale, or cancellation of the treasury stock. The difference between the carrying
amount and the consideration on sale is recognized as additional paid-in capital.
(15) Share-based payments
The Company has an equity-settled stock option scheme as an incentive plan for directors and employees.
Stock options are measured at fair value at the grant date. The fair value of stock options is computed mainly
using the Black-Scholes model and the Monte Carlo simulation.
The fair value of stock options determined at the grant date is expensed over the vesting period, based on theestimate of stock options that will eventually vest, with a corresponding increase in equity. The Company
regularly reviews the assumptions made and revises estimates of the number of options that are expected tovest, when necessary.
The Company has adopted the exemption in IFRS 1 and elected not to apply IFRS 2 “Share-based Payment”
for a part of share-based payments vested prior to April 1, 2012 (the date of transition to IFRSs).
(16) Revenue
The Company’s accounting policy for revenue recognition by major categories is as follows:a. Mobile Communications service and sales of mobile handsets
The Company enters into a contract with customers, mainly through dealers, to provide mobile
telecommunications services to customers and also sells mobile handsets and accessories to dealers.
In the Mobile Communications service, revenues are mainly generated from basic monthly charges,
telecom service (“revenues from the mobile telecommunications service”) and other fees.

47





SoftBank Corp. Consolidated Financial Report
For the six-month period ended September 30, 2013

The mobile telecommunications services are recognized as revenue when services are provided tocustomers, based upon basic flat-rate monthly charges plus usage of traffic. Discounts are deducted fromrevenues from monthly mobile telecommunications services as a discount of mobile telecommunications
charges. Points granted to customers through the customer royalty program, based on the actual charges
of mobile telecommunications services, are deferred at their fair values of benefits to be exchanged basedon the estimated point utilization rate and recognized as revenues upon customers’ utilizing those points.
Activation fees are deferred upon entering into the contract and recognized as revenues over the estimatedaverage contract period. Upgrade fees are deferred upon entering into the contract and recognized asrevenues over the estimated average usage period of handsets with the customers. Direct costs related toactivation are deferred to the extent of the activation fees and upgrade fees and are amortized over therespective same period.
Revenues from the sale of mobile handsets and accessories are recognized when mobile handsets aredelivered to dealers, which is when with risk and economic value are deemed to be transferred.
Commission fees paid to dealers related to the sales of mobile handsets are deducted from revenues.
The Company enters into contracts directly with customers to sell mobile handsets to customers. In thiscase, the total amount of revenues from the mobile telecommunication services and the sales of mobile
handsets are allocated to mobile handsets and telecommunication service on the basis of fair value ratio.
However, maximum amount of revenues recognized by the sale of mobile handsets are set by the amounts
received from customers from the sales of mobile handsets. Activation fees and upgrade fees arerecognized as revenues in full amount to the extent of the amounts received by customers.
b. Fixed-line Telecommunications service
In the Fixed-line Telecommunications service, revenues are generated mainly from fixed-line
telecommunications services, which consist of voice communications and digital data transmission services,
Internet provider charges, ADSL service fees, IP telephony service fees, and the usage of the network(“revenues from fixed-line telecommunications service”).
Revenues from fixed-line telecommunications services are recognized as revenues when services areprovided to customers, based upon fixed monthly charges plus the usage of the network.
c. Internet service
In Internet service, revenues are generated mainly from premium advertising, promotion advertising,information listing service, commission of e-commerce transaction, and revenues from membership.
Revenues from premium advertising are recognized over the period in which advertisements are shown on
the web site. Revenue from promotion advertising is recognized when a user clicks on promotion
advertisement. Revenues from information listing service are recognized over the period in which these
services are shown on the website. Revenues from commissions of e-commerce transactions arerecognized when the transactions occur. Membership revenues are recognized over the period in which
the memberships are valid.
(17) Sales commission fees
The Company pays sales commission fees when dealers sell the Company’s mobile handsets to customers or
acquire and retain engagement of telecommunications service between the Company and customers.
Commission fees related to the sales of mobile handsets are deducted from the revenues from the sales ofmobile handsets.
Commission fees related to the acquisition and retention of engagement oftelecommunications service are recognized as selling, general and administrative expenses.

48





SoftBank Corp. Consolidated Financial Report
For the six-month period ended September 30, 2013(18) Borrowing cost
Of borrowing costs that are directly attributable to the acquisition or construction of a qualifying asset, amounts
which are generated by the time when the asset is ready for its intended use are capitalized as part of the cost ofthat asset. A qualifying asset is an asset that necessarily takes a substantial period of time to get ready for use.
All other borrowing costs are recognized as an expense in the period when they are incurred.
(19) Income tax
Income tax expense is composed of current and deferred taxes, and recognized in profit or loss, except for taxes
related to business combinations and taxes related to items that are recognized in other comprehensive income or
directly in equity.
Current tax is measured at the amount expected to be paid to or recovered from the taxation authorities, using
the tax rates and tax laws that have been enacted or substantively enacted by the end of the period.
Deferred tax assets are recognized to the extent that it is probable that taxable profits will be available against
which deductible temporary differences, unused tax losses, and unused tax credits can be utilized. The
recoverability of deferred tax assets are reassessed at the end of each quarter. Deferred tax liabilities arerecognized for taxable temporary differences.
Deferred tax assets and liabilities are not recognized for:࡮ temporary differences arising from the initial recognition of assets and liabilities in a transaction that
affects neither the accounting profit nor the taxable profit, other than in a business combination;
࡮ taxable temporary differences arising from the initial recognition of goodwill;࡮ deductible temporary differences associated with investments in subsidiaries and associates, where it is notprobable that the temporary difference will reverse in the foreseeable future or where there will not be
sufficient taxable profits against which to utilize the benefits of the temporary differences; and࡮ taxable temporary differences associated with investments in subsidiaries and associates, where theCompany is able to control the reversal of the temporary difference and it is probable that the temporary
difference will not reverse in the foreseeable future.
Deferred tax assets and liabilities are measured at the tax rates that are expected to apply to the period when theasset is realized or the liability is settled, based on tax laws that have been enacted or substantively enacted by
the end of the quarter.
Deferred tax assets and liabilities are offset if the Company has a legally enforceable right to set off current tax
assets against current tax liabilities, and income taxes are levied by the same taxation authority on the same
taxable entity.
Income tax expense recorded in the respective interim period is calculated based on the estimated effective tax
rate.
(20) Earnings per share
Basic earnings per share is computed by dividing net income attributable to owners of the parent by theweighted-average number of common stocks outstanding for the period.
Diluted earnings per share assumes full conversion of the issued potential stocks having a dilutive effect, with an
adjustment for net income attributable to owners of the parent and the weighted-average number of common
stocks outstanding for the period.

49





SoftBank Corp. Consolidated Financial Report
For the six-month period ended September 30, 2013



4. Significant judgments and estimates
In preparing condensed interim consolidated financial statements under IFRSs, management makes judgments,
estimates, and assumptions that affect the application of accounting policies and carrying amounts of assets, liabilities,
revenue, and expenses. These estimates and underlying assumptions are based on the management’s best judgments,
through their evaluation of various factors that were considered reasonable as of the period-end, based on historicalexperience and by collecting available information. By the nature of its estimates or assumptions, however, actual
results in the future may differ from those estimates or assumptions.
Estimates and underlying assumptions are continuously reviewed. Revisions to accounting estimates are recognizedin the period in which the estimate is revised as well as in the future periods. Estimates and underlying assumptions
that involve significant risks in making material adjustments to the carrying amounts of assets and liabilities in thenext period include the following:࡮Estimates of fair value of assets acquired and the liabilities assumed in a business combination ((2) of “Note 3.
Significant accounting policies” and “Note 5. Business combinations”)
࡮Fair value measurement of available-for-sale financial assets ((4) of Note 3)
࡮Estimates of forecasted transactions related to hedge accounting ((4) of Note 3)
࡮Estimates for amortization period and impairment of financial assets measured at amortized cost ((4) of Note 3
and “Note 12. Finance cost, net”)
࡮Fair value measurement of derivatives (including embedded derivatives) ((4) of Note 3 and Note 12)
࡮Estimates of useful life of property, plant and equipment and intangible assets ((7) and (9) of Note 3)
࡮Estimates for impairment of property, plant and equipment, goodwill and intangible assets ((11) of Note 3)
࡮Assessment of recoverability of deferred tax assets ((19) of Note 3)
5. Business combinations
For the six-month period ended September 30, 2013
(1) GungHo Online Entertainment, Inc.
a. Overview of consolidation
Masayoshi Son, chairman and CEO of the SoftBank Corp., has entered into a Memorandum of Understanding
on Exercise of Voting Rights for Deferment of Execution of Pledges (the “MOU”) with respect to the shares of
GungHo Online Entertainment, Inc. (“GungHo“) on April 1, 2013, with Heartis Inc. (the “Heartis”; percentage
of voting interest: 18.5%), which is the second largest shareholder of GungHo and Taizo Son’s asset
management company and of which Taizo Son, chairman of GungHo, is the representative director. Under the
MOU, in order to have Son Holdings Inc., of which Masayoshi Son is a director and which is a Masayoshi
Son’s asset management company, defer the execution of pledges over the shares of GungHo held by Heartis,
Heartis has agreed, effective as of April 1, 2013, to the effect that at the shareholders meeting of GungHo,
Heartis will exercise the voting rights for all of the shares of GungHo it holds in accordance with Masayoshi
Son’s directions. Also, a subsidiary of the Company, SoftBank Mobile Corp., undertook the Tender Offerfrom April 1, 2013 to April 26, 2013 and acquired 6.37% of GungHo shares (purchase price: ¥24,976 million).
The Company and Heartis together came to represent the majority of the voting rights in GungHo's shares(percentage of voting interest: 58.50%) and GungHo Online Entertainment became a subsidiary of theCompany from an equity method associate.
With this transaction, the Company expects that the Company will be able to enhance mobile content, and to
improve the efficiency in operation of the mobile communications business and profitability competitiveness,by combining smartphone-focused development capability and infrastructure held by the Company, andplanning and creating capability in the smartphone game industry held by GungHo.

50



SoftBank Corp. Consolidated Financial Report
For the six-month period ended September 30, 2013

㧔Business Description㧕(a) Planning, development, operation and distribution of Internet online game(b) Planning, development and sales of mobile content(c) Planning, development and sales of character goods(d) Planning, development and distribution of other entertainment content
㧔Acquisition date㧕April 1, 2013b. Consideration transferred and the components
㧔Millions of yen㧕

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

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

178,596¥109 million of acquisition-related costs arising from the business combinations is recognized in “Selling,
general and administrative expenses.”
As a result of the reevaluation of 33.63% in equity interest already held at the time of the acquisition of control
by the Company in GungHo at fair value on the acquisition date, the Company recognized a gain on the step
acquisition of ¥150,120 million. This gain is presented as “Income from remeasurement relating to businesscombination” in the condensed interim consolidated statements of income.
c. Fair values of assets and liabilities, non-controlling interests and goodwill on the acquisition date㧔Millions of yen㧕
Acquisition date
(April 1, 2013)
36,90380,814
4,511

Current assets
Intangible assets
Other non-current assets
Total assets

122,228

Current liabilities
Non-current liabilities

10,89729,949Total liabilities

40,846

Net assets

B

81,382

Non-controlling interests

C

48,818A-(B-C)

146,032

Goodwill

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

51





SoftBank Corp. Consolidated Financial Report
For the six-month period ended September 30, 2013

d. Decrease from acquisition of control over subsidiaries
㧔Millions of yen㧕

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

Acquisition date
(April 1, 2013)(24,976)
11,025(13,951)e. Sales and net income of the acquiree
The amount of the acquiree’s sales and net income before elimination of inter-company transactions and after
the acquisition date are ¥85,357 million and ¥22,258 million respectively, which are recorded in the condensed
interim consolidated statements of income for the six-month period ended September 30, 2013.
(2) Sprint
a. Overview of consolidation
On October 15, 2012, the Company and Sprint entered into a series of definitive agreements under which theCompany will invest in Sprint (the “transaction” in this section (2)). After the completion of negotiations, theCompany and Sprint agreed to amend a portion of the transaction on June 11, 2013.
On July 10, 2013, SoftBank Corp. capitalized, through a wholly owned subsidiary, Starburst I, Inc., Sprint withan additional approximately $18.5 billion and the total investment of SoftBank Corp. amounted toapproximately $21.6 billion, including approximately $3.1 billion of corporate bonds with stock acquisitionrights issued by Sprint Nextel Corporation (the “Bond”) invested by Starburst II, Inc. on October 22, 2012. Of
the invested amounts of $21.6 billion, approximately $16.6 billion was distributed to existing individual
Sprint’s shareholders and $5 billion is used to strengthen Sprint. The Bond held by Starburst II, Inc. wasconverted into shares before the completion.
Through this transaction, approximately 72% of Sprint Nextel Corporation shares were acquired for $7.65 pershare in cash, and the remaining shares were converted into Sprint shares on a one-to-one basis, which
succeeded Sprint Nextel Corporation and became listed on the New York Stock Exchange.
As a result of the transaction, Starburst I, Inc., owns approximately 78% of the shares of Sprint and Sprint
became a subsidiary of SoftBank Corp.
Prior to the transaction, Clearwire Corporation (“Clearwire”), a company providing high-speed wirelesscommunication services in the US, became a wholly owned subsidiary of Sprint on July 9, 2013.
From August 1, 2013 to September 16, 2013, SoftBank Corp., through Galaxy Investment Holdings, Inc., awholly-owned subsidiary in the U.S., additionally purchased 2% of the shares of Sprint (purchase price:
approximately $500 million). As a result, the Company’s ownership in the outstanding Sprint common stock
became approximately 80% as of September 30, 2013.
(Structure as of September 30, 2013)


52





SoftBank Corp. Consolidated Financial Report
For the six-month period ended September 30, 2013
b. Purposes of consolidation(a) Enables the Company to establish an operating base as one of the largest mobile Internet companies in theworld. The combined subscriber base will be one of the largest between the U.S. and Japan*.
(b) Enables the Company to leverage its deep expertise in smartphones and next-generation mobile networks,
and its track record of success in competing in mature markets with large incumbents, to enhancecompetitiveness of Sprint in the U.S.
(c) Provides Sprint $5.0 billion of new capital for its mobile network, strategic investments, and balance sheet aspart of its continued efforts to fortify its operating base towards future growth.
Note:
Based on Telecommunications Carriers Association (“TCA”) data and disclosed material by relevant companies as ofthe end of June 2013.

c. Summary of Sprint

Name

Sprint Corporation

Address

6200 Sprint Parkway, Overland Park, Kansas

Name and title of representative

Dan Hesse, Chief Executive Officer and Director

Business description

Holding company
Provision of telecommunications services through its operating subsidiaries

Note

The Chairman of the Board and the Vice Chairman of the Board wereassumed by Masayoshi Son, the Chairman & CEO of SoftBank Corp. andRonald Fisher, Director of SoftBank Corp.,respectively. Adm. Mike Mullen,
former Chairman of the Joint Chiefs of Staff, has been appointed as the
Director in charge of security.

Consolidated sales$35,345 million (Fiscal year ended December 2012, US GAAP)

d. Acquisition dateJuly 10, 2013

53





SoftBank Corp. Consolidated Financial Report
For the six-month period ended September 30, 2013e. Consideration transferred and the component
㧔Millions of yen㧕
Payment amount
Conversion of corporate bonds with stock acquisition rights
held at the time of acquisition
Total consideration transferredA

Acquisition date㧔July 10, 2013㧕
1,875,149
313,534
2,188,683

Acquisition-related costs arising from the business combination is ¥12,106 million and it is recognized in “Selling,
general and administrative expenses”, ¥3,751 million for the year ended March 31, 2013 and ¥8,355 million for thesix-month period ended September 30, 2013, respectively.







































54



SoftBank Corp. Consolidated Financial Report
For the six-month period ended September 30, 2013



f. Fair values of assets and liabilities, non-controlling interests and goodwill on the acquisition date㧔Millions of yen㧕Acquisition date㧔July 10, 2013㧕
447,873
327,211
111,764
105,318
42,762
1,034,928

Current assets
 Cash and cash equivalents
 Trade and other receivables1
 Other financial assets
Inventories
 Other current assets
Total current assets

Non-current assets
 Property, plant and equipment2
 Intangible assets2
Other financial assets
Other non-current assets
Total non-current assets
Total assets

1,291,364
5,275,623
23,93813,1886,604,113
7,639,041
Current liabilities
 Interest-bearing debt2
Trade and other payables
 Income taxes payables
 Provisions3 Other current liabilities
Total current liabilities

86,961
651,608
3,917
90,340286,158
1,118,984

Non-current liabilities
 Interest-bearing debt2
 Other financial liabilities
 Defined benefit liabilities
 Provisions3
 Deferred tax liabilities4
 Other non-current liabilities
Total non-current liabilities
2,671,299
7,544
65,763
147,947
1,423,086
184,106
4,499,745

Total liabilities

5,618,729

Net assets

B

Non-controlling interests5

C

Basis adjustment6
Goodwill7

D
A-(B-C)-D

2,020,312
437,706
311,659
294,418
Consideration transferred is allocated to acquired assets and assumed liabilities based on a fair value on theacquisition date. As the above amounts are provisional fair values based on the best estimate at present, the above
amounts may change when additional information of facts and circumstances that existed as of the acquisition date
may be obtained.
The above amount is translated at the exchange rate (USD = JPY101.14) as of the acquisition date.

55





SoftBank Corp. Consolidated Financial Report
For the six-month period ended September 30, 2013

Notes:
1. Estimation of fair values of acquired receivables, contractual amounts receivables and amounts not expected to be collected
As for fair value of ¥327,211 million of acquired receivables and other receivables (mainly sales receivables), the total
amount of contracts is ¥342,787 million and the estimate of the contractual cash flows not expected to be collected at theacquisition date is ¥15,576 million.
2. Property, plant and equipment, Intangible assets and Interest-bearing debt
Please refer to “Note 7. Property, plant and equipment”, “Note 8. Intangible assets” and “(1) Component of interest-bearingdebt” in “Note 9. Interest-bearing debt” for the components.
3. Provisions
Provisions recognized by the business combination are mainly asset retirement obligations, expenses related to the closing of
the leased properties due to the shut-down of the Nextel Platform in June 30, 2013, expenses related to the closing of theleased properties such as offices and base stations, and the reduction of personnel, due to the acquisition of Clearwire, andexpenses related to access contracts for large capacity lines which will not be used.
4. Deferred tax liabilities
Deferred tax liabilities recognized by this business combination are mainly temporary differences related to FCC Licenses,
and trademarks with indefinite useful lives.
5. Non-controlling interests
Non-controlling interests are measured based on the proportionate interests after the acquisition in the identifiable net assetsof the acquiree at acquisition date.
6. Basis adjustment
The Company entered into foreign currency forward contract to hedge exchange risks for the investment to Sprint.
scheduled transaction was designated as cash flow hedge.

This¥311,659 million, the fair value of the hedging instruments at

the acquisition date is deducted from initial amount of goodwill which was recognized from the acquisition.
7. Goodwill
Goodwill reflects excess earning power expected from the future business development and the synergy with existing
businesses.

g. Decrease from acquisition of control over subsidiaries(Millions of yen)
Acquisition date㧔July 10, 2013㧕Payment amount by cash

(1,875,149)

Cash and cash equivalents held by the acquiree at the time of acquisition ofcontrol

447,873

Decrease in cash from the acquisition of control over the subsidiary (1,427,276)

Proceeds from settlement of foreign currency forward contract for
acquisition of control of subsidiaries

310,104

Decrease in cash from the acquisition of control over the subsidiary, net(1,117,172)h. Sales and net loss of the acquiree
The amounts of the acquiree’s sales and net loss before elimination of inter-company transactions after theacquisition date, which are recorded in the condensed interim consolidated statements of income for thesix-month period ended September 30, 2013 are ¥760,941 million and ¥66,307 million respectively.

56



SoftBank Corp. Consolidated Financial Report
For the six-month period ended September 30, 2013(3) WILLCOM, Inc.
a. Overview of consolidation
The Company owns 100% of shares issued by WILLCOM, Inc. However WILLCOM, Inc. was in the processof rehabilitation under the Corporate Reorganization Act and the Company did not have effective control over
WILLCOM, Inc. Therefore, WILLCOM, Inc. was not treated as a subsidiary.
WILLCOM, Inc. made prepayments of rehabilitation claims and rehabilitation security interests in June 2013 andfiled a petition with the Tokyo District Court for the termination of its rehabilitation proceedings. WILLCOM,
Inc. received an order of termination of rehabilitation proceedings from the Tokyo District Court on July 1, 2013.
Consequently, WILLCOM, Inc. became a subsidiary of the Company.
(Business description of WILLCOM, Inc.㧕
Telecommunication business(Acquisition date㧕July 1, 2013b. Consideration transferred and the components
㧔Millions of yen㧕
Fair value of equity interest in WILLCOM, Inc. alreadyheld at the time of the acquisition


104,070
A

Total consideration transferred

Acquisition date㧔July 1, 2013㧕

104,070
As a result of the reevaluation of 100% equity interest already held by the Company at the time of theacquisition of control in WILLCOM, Inc. at fair value, the Company recognized a gain of ¥103,766 million.
This gain is presented as “Income from remeasurement relating to business combination” in the condensed
interim consolidation statements of income.



57



SoftBank Corp. Consolidated Financial Report
For the six-month period ended September 30, 2013

c. Fair value of assets and liabilities, non-controlling interests and goodwill on the acquisition date㧔Millions of yen㧕

Acquisition date㧔July 1, 2013㧕
Current assets
Property, plant and equipment
Intangible assets
Other non-current assets

80,84346,02640,025
14,883

Total assets

181,777

Current liabilities
Non-current liabilities

83,95814,996

Total liabilities

98,954
B

82,823C

222

A-(B-C)

21,469Net assets
Non-controlling interests
GoodwillNon-controlling interests is from WILLCOM OKINAWA, Inc. (proportionate interest held by the Company
is 80%), a subsidiary of WILLCOM Inc., and it is measured based on the proportionate interests after theacquisition in the identifiable net assets of the acquiree at the acquisition date.
Goodwill reflects excess earning power expected from the future business development, assembled workforce
and the synergy with existing business.
d. Estimation of fair values of acquired receivables, contractual amounts receivables and amounts not expected to becollected
The main components of acquired trade and other receivables are installment receivables and the fair value is¥31,039 million. The total amount of contractual receivables is ¥31,328 million and the best estimate of thecontractual cash flows not expected to be collected at the acquisition date is ¥289 million.
e. Increase from acquisition of control over subsidiaries
㧔Millions of yen㧕

Acquisition date㧔July 1, 2013㧕
Cash and cash equivalents held by the acquiree at the time ofacquisition of control

14,043

Increase in cash from the acquisition of control over thesubsidiary

14,043
f. Sales and net loss of the acquiree
The amounts of the acquiree’s sales and net loss before elimination of inter-company transactions after theacquisition date, which are recorded in the condensed interim consolidated statements of income for thesix-month period ended September 30, 2013, are ¥41,323 million and ¥2,830 million respectively.







58





SoftBank Corp. Consolidated Financial Report
For the six-month period ended September 30, 2013



6. Segment information(1) Description of reportable segments
The Company’s reportable segments are components of business activities for which discrete financial
information is available, and such information is regularly reviewed by the Company’s board of directors in orderto make decisions about the allocation of the resources and assess its performance.
The Company’s segments are four segments, the Mobile Communications segment, the Sprint segment, theFixed-line Telecommunications segment, and the Internet segment. The Mobile Communications segment provides, mainly through SoftBank Mobile Corp., mobile communication
services, and sale of mobile handsets and accessories.
The Sprint segment provides, through Sprint, mobile communication services, sale of mobile handsets andaccessories accompanying the mobile communication services, and the fixed-line telecommunication services in
the U.S.
The Fixed-line Telecommunications segment provides, mainly through SoftBank Telecom Corp.,
telecommunication services such as data communication and fixed-line telephone service for corporate
customers. It also provides, mainly through SoftBank BB Corp., broadband service for individual customers.
The Internet segment provides, mainly through Yahoo Japan Corporation, Internet-based advertising operations.
The Sprint segment is newly established from the three-month period ended September 30, 2013 by the
consolidation of Sprint in July 2013.
The Company previously had four segments, the Mobile Communications segments, the Broadband theInfrastructure segments, the Fixed-line Telecommunications segments, and the Internet Culture segments until
the year ended March 31, 2013. However, with the consolidation of eAccess Ltd. in January 2013, GungHo in
April 2013, and Sprint in July 2013, the Company changed its reportable segments from the three-month period
ended June 30, 2013 as the business size and region of the Company changes significantly.
For the three-month period ended June 30, 2013, the previous Fixed-line Telecommunications segment and theBroadband Infrastructure segment were integrated and included in the Domestic Fixed-line Telecommunications
Segment. Also the previous Mobile Communications segment was presented as the Domestic Mobile
Communications segment and the previous Internet Culture segment was presented as the Internet Segment.
Distribution business of SoftBank BB Corp. was previously included in “Others.” However it was included in
the Domestic Mobile Communications segment, considering the stronger connection with mobile
communications.
For the three-month period ended September 30, 2013, the Company changed the names of the segments. The
previous Domestic Mobile Communications is presented as the Mobile Communications. Also, the previous
Domestic Fixed-line Telecommunications is presented as the Fixed-line Telecommunications. Only the namesof the segments were changed, not the definition of the segments.
Segment information for the six-month period ended September 30, 2012, and for the three-month period ended
Septmber 30, 2012 is presented in accordance with the reportable segment after the change.

59





SoftBank Corp. Consolidated Financial Report
For the six-month period ended September 30, 2013

(2) Net sales and income of reportable segments
The accounting policies of the reportable segments are the same as the Company's accounting policies describedin “Note 3. Significant accounting policies.” Income of reportable segments is based on income excluding“Income from remeasurement relating to business combination” and “Other operating income (loss)” fromoperating income as follows:
Segment income = (net sales – cost of sales – selling, general and administrative expenses) in each segment
Intersegment transactions are conducted under the same general business conditions as applied for externalcustomers.
The following is the information about the Company’s net sales and income by reportable segments. The
Company also discloses “EBITDA (segment income before depreciation and amortization)” by reportablesegments.

60



SoftBank Corp. Consolidated Financial Report
For the six-month period ended September 30, 2013

For the six-month period ended September 30, 2012
(Millions of yen)
Reportable segments
MobileCommunications

SprintFixed-line
Telecommunications

Internet

Total

Others1

Consolidated

Reconciliations2

Net sales
Customers

1,080,989-

218,943

161,342

1,461,274

43,370

-

6,974

-

43,121

1,719

51,814

17,911(69,725)-

Total

1,087,963-

262,064

163,061

1,513,088

61,281(69,725)

1,504,644

EBITDA

413,192-

85,09487,359585,645

8,958(6,830)587,773(25,245)(6,088)(154,574)(3,133)(937)(158,644)

59,84981,271

431,071

5,825(7,767)429,129

Intersegment

Depreciation andamortization
Segment income
Income from remeasurement relating to businesscombination(123,241)
289,951-

1,504,644-

Other operating loss

429,129

Operating income
Finance cost, net(37,377)

Equity in loss of associates(1,280)

Income before income tax

390,472

For the six-month period ended September 30, 2013
(Millions of yen)
Reportable segments
MobileCommunications

Sprint3

Fixed-line
Telecommunications

Internet

Total

Others 1

1,377,300

760,858

218,668

195,160

2,551,986

46,626

-

9,227

83

51,701

1,130

62,141

18,147(80,288)-

1,386,527

760,941

270,369

196,2902,614,127

64,773(80,288)2,598, 612

101,022

816,898

9,431(10,331)815,998(6,439)(345,952)(3,336)(651)(349,939)

94,583

470,946

6,095(10,982)

466,059

Reconciliations 2

Consolidated

Net sales
Customers
Intersegment
Total
EBITDA

515,146

111,887

88,843

Depreciation andamortization(175,595)(134,191)(29,727)

Segment income (loss)

339,551(22,304)

59,116



2,598,612

Income fromremeasurement relating tobusiness combination

253,886

Other operating loss

(4,875)

Operating income

715,070

Finance cost, net(105,023)

Equity in loss of associates(3,780)

Income before income tax

606,267

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

61

SoftBank Corp. Consolidated Financial Report
For the six-month period ended September 30, 2013

For the three-month period ended September 30, 2012
(Millions of yen)
Reportable segments
MobileCommunications

SprintFixed-line
Telecommunications

Internet

Total

Others1

Reconciliations2

Consolidated

Net sales
Customers

562,488-

111,574

81,160755,222

23,478-

778,700

Intersegment

3,261

-

22,555964

26,7809,611(36,391)-

Total

565,749-

134,129

82,124782,00233,089(36,391)

778,700

EBITDA
Depreciation andamortization

214,918-

44,75744,751

304,426

6,386(3,778)307,034

Segment income

151,370(63,548)-(12,642)(2,917)(79,107)(1,584)(530)(81,221)32,11541,834

225,319

4,802(4,308)225,813

Income fromremeasurement relating tobusiness combination-

Other operating income-

Operating income

225,813

Finance cost, net(27,972)

Equity in loss of associates(3,368)

Income before income tax

194,473

For the three-month period ended September 30, 2013
(Millions of yen)
Reportable segments

Sprint3

Fixed-line
Telecommunications

Internet

Total

720,073

760,858

111,794

99,665

1,692,390

25,153

-

4,536

83

25,169427

30,215

9,045(39,260)

MobileCommunications

Customers
Intersegment

Others1

Reconciliations2

Consolidated

Net sales
1,717,543-

Total

724,609760,941

136,963

100,092

1,722,605

34,198(39,260)

1,717,543

EBITDA
Depreciation andamortization

259,320

111,887

45,962

51,172

468,341

6,493(4,012)

470,822(92,228) (134,191)(14,918)(3,218)(244,555)(1,749)(336)(246,640)

Segment income (loss)

167,092(22,304)

31,04447,954

223,786

4,744(4,348)224,182

Income fromremeasurement relating tobusiness combination

103,766

Other operating loss

(3,903)Operating income

324,045

Finance cost, net(66,097)

Equity in loss of associates(2,697)

Income before income tax

255,251

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

62

SoftBank Corp. Consolidated Financial Report
For the six-month period ended September 30, 2013



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

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

As of
March 31, 2013

As of
September 30, 2013

110,811

118,284

249,143

1,039,699

1,412,580

2,484,485

72,53673,93091,702

91,945

153,266

359,661

62,19472,555

119,797

1,377,185

1,830,615

3,304,788

The components of the carrying amounts of property, plant and equipment recognized as a result of the consolidationof Sprint in July 2013 are as follows. Please refer to “(2) Sprint” in “Note 5. Business combinations” for the detailsof the acquisition.
(Millions of yen)


Buildings and structures
Telecommunications equipment
Land
Construction in progress
Other
Total

Acquisition date㧔July 10, 2013㧕
140,270794,524
18,362298,928
39,2801,291,364

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

As ofApril 1, 2012
Intangible assets with finite useful lives
Software
Customer relationships
Favorable lease contracts
Game title
Trademarks
Other
Intangible assets with indefinite useful lives
FCC Licenses
Trademarks
Total

As of
March 31, 2013

As of
September 30, 2013

310,755

411,285

590,777-

83,876730,037--

140,480--

64,830201

178

50,62829,36729,55484,426--3,472,492--

580,146

340,323

524,893

5,713,816

As a result of consolidation of eAccess Ltd. in January 2013, the Company recognized customer relationships
amounting to ¥84,684 million. The details of the acquisition are described in “(9) Notes to the differences in thescope of consolidation” in “Note 15. First-time adoption of IFRSs.”
As a result of consolidation of GungHo in April 2013, the Company recognized Game title amounting to ¥77,796
million. The details of the acquisition are described in “(1) GungHo Online Entertainment, Inc.” in “Note 5.
Business combinations.”

63SoftBank Corp. Consolidated Financial Report
For the six-month period ended September 30, 2013

The components of the carrying amounts of intangible assets recognized as a result of the consolidation of Sprint inJuly 2013 are as follows. Please refer to “(2) Sprint” in “Note 5. Business combinations” for the details of theacquisition.
(Millions of yen)

Acquisition date㧔July 10, 2013㧕
Intangible assets with finite useful lives
Software
Customer relationships
Favorable lease contracts
Trademarks
Other
Intangible assets with indefinite useful lives
FCC Licenses
Trademarks
Total

138,330
700,192
148,979
52,59347,9283,587,335
600,266
5,275,623

As a result of the consolidation of WILLCOM, Inc. in July 2013, the Company recognized customer relationships
amounting to ¥25,004 million. The details of the acquisition are described in “(3) WILLCOM, Inc.” in “Note 5.
Business Combination.”

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

As ofApril 1, 2012

As ofMarch 31, 2013

As of
September 30, 2013

Current
Short-term borrowings
Commercial paper
Current portion of long-term borrowings
Current portion of corporate bonds
Current portion of lease obligations
Current portion of installment payables
Total

114,625
496,073
142,686
157,302
15,985458,313631,232
204,837
192,658
47,088334,287
42,000372,819
173,926
231,001
49,487926,671

1,534,128

1,203,520

Non-current
Long-term borrowings
Corporate bonds
Lease obligations
Preferred securities
Installment payables
Total

619,517458,520431,722
195,920
57,594

510,856
791,919564,077
197,468
109,405

2,110,735
4,531,948
682,371
198,312113,278

1,763,273

2,173,725

7,636,644

64SoftBank Corp. Consolidated Financial Report
For the six-month period ended September 30, 2013

Notes:
1. SoftBank Corp. has entered into the loan agreement (the “permanent loan”) with maximum total amount of borrowing at¥1,980 billion with the financial institutions on September 13, 2013 to refinance the bridge loan for the consolidation of
Sprint, executing borrowing on September 27, 2013 and on September 30, 2013.
The summary of the permanent loan is as follows.
Summary of the permanent loan
Borrower

SoftBank Corp.

Lenders

Mizuho Bank, Ltd.
Sumitomo Mitsui Banking Corporation
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
Deutsche Bank AG
Crédit Agricole CIB
and others in total 19 institutions

Date of contract

September 13, 2013

Maximum total amount ofborrowing and maturity

Total amount of borrowing limit :¥ 1.98 trillion 㧔Breakdown㧕  Facility A㧦 ¥1.1 trillion (Maturity: September 13, 2018)  Facility B㧦 ¥880 billion (Maturity: September 14, 2020)

Loan drawdown amount anddate¥1.85 trillion on September 27, 2013¥130 billion on September 30, 2013

Primary use of loan proceeds

Repayment of bridge loan for Sprint consolidation
Repayment of some existing borrowings at SoftBank Corp.
Repayment of some existing debts at eAccess Ltd.

Collateral

Not applicable

Guarantors

SoftBank Mobile Corp. and SoftBank Telecom Corp.

Financial covenants

Following are the financial covenants for the permanent loan:(a) The amount of SoftBank Corp.'s net assets at the end of the year must not fall
below 75% of SoftBank Corp.'s net assets at the end of the previous year.
(b) The consolidated balance sheets of SoftBank Corp. and BB Mobile Corp. at
the end of the year must not show a net capital deficiency. At the end of theyear, balance sheets of SoftBank Mobile Corp., SoftBank BB Corp. and
SoftBank Telecom Corp. must not show a net capital deficiency.
(c) In the SoftBank Corp.'s consolidated financial statement, operating income(loss) or net income or loss attributable to the owner of the parent company
must not result in losses for two consecutive years.
(d) Adjusted net interest-bearing debts1 or leverage ratios2 designated in the loan
agreement must not exceed respective certain amounts or numbers at the endof each annual reporting period and at the end of the second quarter.
1. Adjusted net interest-bearing debts㧦
Amounts deducting cash and cash equivalents from interest-bearing debts inthe consolidated statement of financial position. Certain adjustments are
made such as excluding certain listed subsidiaries such as Sprint from thesubject.
2. Leverage ratio㧦
Adjusted net interest-bearing debt / adjusted EBITDA3
3 Adjusted EBITDA:
Certain adjustments are made to EBITDA such as excluding listed
subsidiaries such as Sprint.

65

SoftBank Corp. Consolidated Financial Report
For the six-month period ended September 30, 2013

Notes:
2. The components of interest-bearing debt recognized as a result of the consolidation of Sprint in July 2013 are as follows.
Please refer to “(2) Sprint” in “Note 5. Business combinations” for the details of the acquisition.
(Millions of yen)
Acquisition date(July 10, 2013)



Current
Current portion of long-term borrowings
Current portion of corporate bonds
Current portion of lease obligations
Total

13,38063,317
10,26486,961

Non-current
Long-term borrowings
Corporate bonds
Lease obligations
Total

34,8542,593,343
43,102
2,671,299

Notes:
3.Covenants on interest-bearing debts of Sprint
Major covenants on the interest-bearing debt issued by Sprint are as follows:a. Holders of a portion ($17.6 billion) of bond issued by Sprint are provided with the right to require Sprint to repurchase thenotes if there is a change of control or if there is a decline, to a certain extent, in ratings of the applicable notes by the
Rating Services. Also, holders of the Clearwire bond ($3.2 billion) are provided with the right to require the repurchaseof the notes if a change of control triggering event occurs.
b. It is required that as of the last day of each quarter, Sprint's ratio of total indebtedness* to EBITDA (as defined) should notexceed a threshold level. Exceeding the ratio could result in the maturities being accelerated. The limit for the ratio was
6.25 to 1.0 as of September 30, 2013.
*Total indebtedness: the sum of Sprint’s outstanding debt (which does not include trade payable incurred in the ordinary
course of business) and guarantee of indebtedness, with certain adjustments such as excluding amounts agreed based oncontracts with lenders.
On September 11, 2013, Sprint issued $2.25 billion aggregate principal amount of 7.250% Notes due 2021 and $4.25 billion
aggregate principal amount of 7.875% Notes due 2023. After giving effect to the above, Sprint would have exceeded thisthreshold by a significant level at September 30, 2013. Accordingly, Sprint obtained a limited waiver from each of thelenders under the credit facilities, which should enable compliance with this financial covenant until December 31, 2013.
However, as a requirement under the waivers, Sprint must maintain a segregated reserve account of approximately $3.5
billion until the earlier of the time existing Clearwire indebtedness is prepaid, redeemed or otherwise retired, or December 31,
2013 at which time the waivers will have expired. As the aggregate of approximately $414 million of Clearwire
indebtedness was already retired on September 11, 2013 and September 26, 2013, the balance of restricted cash wasapproximately $3.1 billion as of September 30, 2013.
Furthermore, on October 24, 2013, Sprint issued notices to redeem on December 1, 2013, all of the outstanding principal
amount (approximately $2.4 billion) of Clearwire's 12% Senior Secured Notes due 2015, as well as $325 million of 12%
Second-Priority Senior Secured Notes due 2017.
Restricted cash balance noted above is included under “Other financial assets” of the current assets of the condensed interim
consolidated statements of Financial Position. Cash inflow is stated as “Increase in Restricted Cash” under investing
activities in the condensed interim consolidated statement of cash flows.

66SoftBank Corp. Consolidated Financial Report
For the six-month period ended September 30, 2013

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

Six-month period ended
September 30, 2012

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

Six-month period ended
September 30, 2013

97,638 - (131,752)
42,00097,638 (89,752)

Note :The Company borrowed permanent loan in September 2013 and refinanced the bridge loan which was made for the
consolidation of Sprint. Increase and decrease in short-term borrowings for the six-month ended September 30, 2013 includes
increase of borrowings of ¥1,034.9 billion on July 10, 2013 from the bridge loan and deacrease of borrowings by the repaymentof that bridge loan of ¥1,284.9 billion (including the amount of repayment of ¥250 billion on December 21, 2012).

(3) Components of proceeds from long-term interest-bearing debt


The components of “Proceeds of long-term interest-bearing debt” in the condensed interim consolidated statementsof cash flows are as follows:
㧔Millions of yen㧕

Six-month period ended
September 30, 2012

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

Six-month period ended
September 30, 2013

300,041 

2,179,419

110,000 

1,362,682

189,326 

226,939599,367 

3,769,040


Notes:
1. Corporate bonds issued for the six-month period ended September, 30 2013 are as follows:

Company name / Name of bond
SoftBank Corp.
USD-denominated Senior Notes
due year 2020

Date of issuanceTotal amountof issuanceInterest
rate

April 23, 2013

$2,485 million¥244,176 million 2

4.50%
3.29% 3

April 15, 2020

Date of maturity

Euro-denominated Senior Notes
due year 2020

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

4.63㧑
4.05㧑3

April 15, 2020

43rd Unsecured Straight Corporate
Bond

June 20, 2013

¥400,000 million

1.74%

June 20, 2018

7.25%

Sept. 15, 2021

7.88%

Sept, 15, 2023

Sprint Corporation
7.25% Notes due 2021

Sept. 11, 20137.875% Notes due 2023

Sept. 11, 2013

$2,250 million¥220,950 million$4,250 million¥417,350 million

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

67

SoftBank Corp. Consolidated Financial Report
For the six-month period ended September 30, 2013

(4) Components of repayment of long-term interest-bearing debt


The components of “Repayment of long-term interest-bearing debt” in the condensed interim consolidated
statements of cash flows are as follows:
㧔Millions of yen㧕
Six-month period ended
September, 30 2013

Six-month period ended
September 30, 2012

Repayment of long-term borrowings
Redemption of corporate bonds*
Payment of lease obligations
Payment of installment payables
Total(260,042) (859,335)(95,000)(195,624)(93,838)(7,718)(119,667)(456,598)(1,200,555)(25,929)

Note:
Main corporate bonds redeemed during the six-month period ended September, 30 2013 are as follows:

Company name /Name of bondAmount of redemption

Interest
rate

Date of redemption

June 2, 2010

¥25,000 million

1.17%

May 31, 2013

Sept. 17, 2010

¥130,000 million

1.24%

Sept. 17, 2013

Nov. 24, 2009

$414 million¥40,613 million

12.00%

Sept. 11, 2013
Sept. 26, 2013

Date of issuance

SoftBank Corp.
31st Unsecured Straight
Corporate Bond
33rd Unsecured Straight
Corporate Bond
Clearwire Communications LLC
12% Senior Secured Notes due
2015

10. Foreign exchange rateExchange rates of the major currencies used for translating financial statements of foreign operations are as follows:(1) Rate at the end of the period 

U.S.dollars

April 1, 2012
82.19

March 31, 2013
94.05



(2) Average rate for the quarter
For the six-month period ended September 30, 2012


U.S.dollars

Three-month ended
June 30, 2012
80.40

Three-month ended
September 30, 2012
78.42



For the six-month ended September 30, 2013

U.S.dollars

Three-month ended
June 30, 2013
97.94

Three-month ended
September 30, 2013
98.20

68

㧔yen㧕
September 30, 2013
97.75

SoftBank Corp. Consolidated Financial Report
For the six-month period ended September 30, 2013



11. Equity(1) Additional paid-in capital
For the six-month period ended September 30, 2012
Alibaba Group Holding Limited, an associate accounted for using the equity method, acquired the shares of
Alibaba.com Limited, a subsidiary of Alibaba Group Holding Limited, through its takeover bid in June 2012 andconducted the privatization of Alibaba.com Limited. The Company’s additional paid-in capital decreased by¥51,208 million as Alibaba Group Holding Limited treated this as the change in the interests in controlledsubsidiary, decreasing its additional paid-in capital.
(2) Accumulated other comprehensive income
The components of accumulated other comprehensive income are as follows:(Millions of yen)

As ofApril 1, 2012

As ofMarch 31, 2013

As of
September 30, 2013

Available-for-sale financial assets

46,42750,7005,123Cash flow hedges*
Exchange differences on translating
foreign operations(994)

114,158(26,075)-

83,16846,875

Total
45,433
248,026
25,923Note:
In connection with the consolidation of Sprint, during the six-month ended September 30, 2013, accumulated othercomprehensive income, generated from the hedging instrument designated as a cash flow hedge, is derecognized inorder to deduct the amount from the initial amount of goodwill which was recognized by the consolidation. Pleaserefer to “(2)Sprint” in “Note 5. Business combinations” for the details of the acquisition.
12. Finance cost, net
The components of finance income and costs are as follows:(Millions of yen)Interest income1
Interest expense
Derivative loss1,2,3
Gain on sale of securities
Impairment loss on equity method associates 4
Other
Total

Six-month period ended
September 30, 2012

Six-month period ended
September 30, 2013

467

19,284(25,654)(105,862)(2,505)(25,824)

1,815

12,066(11,061)-(439)(4,687)(37,377)(105,023)

Notes:
1.Stock acquisition rights in the convertible bonds issued by Sprint Nextel Corporation and undertaken by Starburst II
on October 22, 2012, were reported at fair value as a derivative, being bifurcated from the host contracts as it isclassified as embedded derivatives and were recorded in “Other financial Assets” in the condensed interim
consolidated statements of financial position. As the Company exercised the relevant stock acquisition right and theCompany derecognized the derivatives, a derivative loss of ¥16,356 million was recorded during the six-month period
ended September 30, 2013.
With regard to the host contract (the bonds), the amount of payment less the fair value of the embedded derivative at
inception of the bond was recorded in the consolidated statement of financial position at inception. This deduction
amount is accreted using the effective interest method with corresponding adjustments to interest income. Initially,
the expected remaining accretion period for the bond discount was seven years based on the contract term of the bond.
However, based on the approval for the acquisition at the shareholders’ meeting of Sprint on June 25, 2013, the69SoftBank Corp. Consolidated Financial Report
For the six-month period ended September 30, 2013Company changed the estimate of the expected remaining term until the completion of the acquisition. During thesix-month period ended September 30, 2013, the Company recognized interest income of ¥16,219 million. The
increase of interest income from the reflection of this change in the expected remaining term of the bond was ¥15,568
million.
2. Of the foreign currency forward contract totaling approximate $22.0 billion which is related to the acquisition of
Sprint, with regard to the approximate $5.0 billion that did not meet the criteria for hedge accounting, a derivative lossof ¥13,186 million was recorded for the six-month period ended September 30, 2013.
Hedge accounting was applied to the approximate $17.0 billion as cash flow hedge. Fair value of ¥311,659 millionof hedge instruments on the acquisition date was deducted from the initial amount of goodwill which was recognizedfrom the acquisition.
3. Derivatives associated with the transactions for the acquisition of Sprint are as follows. Derivative financial assets
are included in “Other financial assets” in the condensed interim consolidated statements of financial position.
Derivative to which hedge accounting is applied
㧔Millions of yen㧕
As of

As of

April 1, 2012
Contract amounts(More than one
year)
Fair value

March 31, 2013
Contract amounts(More than one
year)
Fair value

As of
September 30, 2013
Contract amounts(More than one
year)
Fair value

Foreign exchange contracts
To buyU.S. dollars--

1,411,990


--

1,411,990


Total

189,357(-)
189,357-(-)-

Derivatives to which hedge accounting is not applied㧔Millions of yen㧕
As of

As of

As of

April 1, 2012

March 31, 2013

September 30, 2013Contract amounts(More than one
year)
Fair value

Contract amounts(More than one
year)



Fair value

-

Total



Fair valueEmbedded derivatives
Stock acquisition rights

Contract amounts(More than one
year)

-

291,555

(291,555)



(291,555)-

291,555

15,706--

15,706--

4.The Company recorded the impairment loss of ¥11,061 million for the six-month period ended September 30, 2012
as the recoverable amount was less than its carrying amount with regards to equity method associate. The
recoverable amount is the fair value less costs of disposal.

13. Supplemental information to the condensed interim consolidated statements of cash flows(1) Scope of purchase of property, plant and equipment and intangible assets“Purchase of property, plant and equipment and intangible assets” includes cash outflows from purchasing
long-term prepaid expenses that are included in other non-current assets in the condensed interim consolidated
statements of financial position.
(2) Presentation of cash flow regarding finance lease
Once the Company purchases telecommunications equipment for the purpose of assembly, installation andinspection, the Company sells the equipment to lease companies for sale and leaseback purposes. The leased
asset and lease obligation are recorded in the consolidated statement of financial position.

70SoftBank Corp. Consolidated Financial Report
For the six-month period ended September 30, 2013

The cash outflows from the purchase of the equipment from vendors are included in “Purchase of property, plantand equipment and intangible assets" under cash flows from investing activities, and the cash inflows from the saleof the equipment to lease companies are included in “Proceeds from long-term interest-bearing debt" under cash
flows from financing activities.
(3) Payments for preferred stocks, stock acquisition rights, and long-term debt of subsidiaries.
For the six-month period ended September 30, 2012
In April 2006, BB Mobile Corp. issued Class 1 preferred stock-series 1 and stock acquisition rights to Vodafone
International Holdings B.V. and obtained a subordinated loan from Vodafone Overseas Finance Limited as aseries of financing transactions for the Company’s acquisition of Vodafone K.K. (currently SoftBank Mobile
Corp.). In November 2006, refinancing of the funds for the acquisition was conducted, and SoftBank Mobile
Corp. assumed BB Mobile Corp’s subordinated loan.
In December 2010, The Company acquired aforementioned all Class 1 preferred stock-series 1 and stockacquisition rights issued by BB Mobile Corp. to Vodafone International Holdings B.V., and all principal andaccrued interest of a long-term loan receivable from SoftBank Mobile Corp. held by Vodafone Overseas Finance
Limited for a total amount of ¥412,500 million. ¥212,500 million out of the total amount and the remaining
amount of ¥200,000 million were paid with related expenses associated with the acquisition in December 2010
and April 2012, respectively.
(4) Proceeds from settlement of foreign currency forward contract for consolidation of control of subsidiaries
For the six-month period ended September 30, 2013This proceeds is from settlement of foreign currency forward contract of approximately $18.5 billion withregards to consolidation of Sprint.
(5) Increase in restricted cash
For the six-month period ended September 30, 2013
It is increase in restricted cash as Sprint is required to maintain a segregated reserve account until the earlier of
the time when existing Clearwire indebtedness is repaid, redeemed or otherwise retired, or December 31, 2013at which time the waivers related to financial covenants will have expired.
Please refer to “(1) Component of interest-bearing debt” in “Note 9. Interest-bearing debt” for the detail.


14. Significant subsequent events
For the six-month period ended September 30, 2013
(1) Consolidation of Supercell Oy
a. Overview of consolidation
SoftBank Corp. and, its subsidiary, GungHo have entered into an agreement with Supercell Oy (“Supercell”), amobile game company headquartered in Finland, its shareholders and the representative of such shareholders on
October 15, 2013. Under the agreement, SoftBank Corp. and GungHo will establish a special purpose
company in Finland, SoftBank Corp. indirectly investing approximately $1.224 billion (investing ratio 80%)
and, GungHo indirectly investing $0.306 billion (investing ratio 20%). Through this special purpose company,
SoftBank Corp. and GungHo will invest a total of $1.53 billion (approximately ¥151.5 billion1) in Supercell(the “Transaction” in this section (1)), and will hold 51% of Supercell’s voting stock.
The Transaction is expected to be completed on October 31, 2013 and Supercell will become a subsidiary of
SoftBank Corp.

71

SoftBank Corp. Consolidated Financial Report
For the six-month period ended September 30, 2013

Notes :
1. Converted at USD = JPY 99

b. Reasons for the Transaction
Supercell is a mobile game company headquartered in Finland.
This new strategic partnership with SoftBank
Corp. and GungHo will help accelerate Supercell’s goal of becoming the “the first truly global games
company.”
GungHo started its online game business in 2002, and it has since then accumulated significant expertise andproduced notable results in the development and operation of online games. Through the Transaction GungHo
will leverage Supercell’s position among the apps in the Games category of the App Store and marketing power
abroad to enhance its global expansion.
SoftBank Corp. acquired Sprint in July 2013, expanding its business operations from Japan to the U.S. with
GungHo and Supercell as drivers in content services, the SoftBank Group continues to strive toward the goal of
becoming the “No.1 mobile Internet company.”                                               

c. Summary of Supercell
Name

Supercell Oy

Address

Itämerenkatu 11-13 00180 Helsinki Finland

Name and title of representative

Ilkka Paananen, CEOBusiness description

Mobile/Social interactive entertainment

Common stock͐2,500FoundedMay 14, 2010

Consolidated sales

͐78,358 thousands㧔the year ended December 2012, Finnish GAAP㧕

72

SoftBank Corp. Consolidated Financial Report
For the six-month period ended September 30, 2013

d. Number of shares to be acquired, consideration transferred and state of share ownership before and after
acquisition
0 shares(number of voting rights:  0)

Number of shares held before transfer(voting rights holding ratio: 0.0%)
Number of shares to be acquired2

21,157,874 shares
Total investment: $1.53 billion

Consideration transferred

Acquisition-related costs: TBD
21,157,874 shares

Number of shares held after transfer2(number of voting rights: 21,157,874)(voting rights holding ratio: 51%)

Notes:
2. This is an estimate based on the number of Supercell common shares outstanding as of October 15, 2013, the number ofcommon shares to be converted from all preferred shares prior to the closing and the maximum number of common sharesissuable from the exercise of options exercisable prior to the closing; but excluding the number of common shares which
are scheduled to be repurchased by Supercell prior to the closing.

(2) Consolidation of Brightstar Corp.
a. Overview of consolidation
SoftBank Corp. has entered into agreements on October 18, 2013, with the major shareholders of mobile device
distributor Brightstar Corp. of the United States (“Brightstar”) pursuant to which SoftBank Corp. will acquire
Brightstar shares ( the “Transaction” in this section (2)).
In the transaction, SoftBank Corp. will invest a total of $1.26 billion (approximately ¥124.7 billion) into certain
indirectly wholly-owned U.S. subsidiaries (the “U.S. subsidiary”). SoftBank Corp. will, in exchange for $400
million of the above investment, receive newly-issued common shares of the U.S. subsidiary, and in exchange
for the remaining $860 million of SoftBank Corp.'s investment, SoftBank Corp. will receive non-voting
preferred shares of the U.S. subsidiary that have an aggregate liquidation preference of $860 million, and awarrant that provides SoftBank Corp. with the rights to acquire a number of common shares of the same
subsidiary that would raise SoftBank Corp.'s ownership of the common shares of the subsidiary toapproximately 70%, for de minimis value, over 5 years (the “Warrant”). The U.S. subsidiary will acquire allcommon and preferred shares (including payment of accrued dividends) of Brightstar from existing shareholders
in exchange for approximately $1.105 billion (approx. ¥109.4 billion1)) and common shares of such U.S.
Subsidiary representing an approximate 43% of the common shares issued.
As a result of the Transaction, SoftBank Corp. will own approximately 57% of the voting rights and commonshares of the U.S. subsidiary that will own 100% of Brightstar, and Mr.Marcelo Claure, Chairman and CEO of
Brightstar, owns approximately 43%. (The Transaction is expected to be completed from November toDecember 2013). As a result, Brightstar will become a subsidiary of SoftBank Corp.
The U.S. subsidiary will use approximately $1.105 billion out of SoftBank Corp.'s total investment of $1.26
billion to complete the Brightstar share purchases noted above (including payment of accrued dividends), andthe remaining approximately $155 million of SoftBank Corp.'s investment will be contributed by the U.S.
subsidiary to Brightstar in order to fund, among others, ongoing corporate activities.
SoftBank Corp. plans to gradually exercise the Warrant to increase its ownership in the U.S. subsidiary toapproximately 70% of the voting power, and common stock, over the five year period.

73

SoftBank Corp. Consolidated Financial Report
For the six-month period ended September 30, 2013

Notes:
1. Converted at USD = JPY 99(Structure at the time of consolidation of Brightstar)Notes:
2. Percentages based on voting power and common stock(Structure after exercise of the Warrant)

Notes:
3. Percentages based on voting power and common stock

b. Reason for transaction
Brightstar is the world’s largest specialized wireless distributors and a leading provider of diversified services
focused on enhancing the performance and results of the key participants in the wireless device value chain:manufacturers, operators and retailers. Its services include Supply Chain Solutions, Handset Protection &Insurance, Buyback and Trade-in Solutions, Multi-Channel Retail Solutions, and Financial Services. Today,
Brightstar provides services in over 125 countries and has a local presence in over 50 countries.
SoftBank Corp. acquired Sprint in July 2013, expanding its business operations from Japan to the U.S. with
Brightstar becoming a subsidiary, SoftBank Corp. aims to strengthen its purchasing scale for mobile devices
and further increase competitiveness both in Japan and the U.S.

74

SoftBank Corp. Consolidated Financial Report
For the six-month period ended September 30, 2013

c. Summary of Brightstar

Name

Brightstar Corp.

Address

9725 NW 117th Ave, #300 Miami, Florida, U.S.A.

Name and title of representative

Marcelo Claure, Chairman and Chief Executive Officer

Business description

Mobile device distribution

Common stock share capital$2,000Founded

September 23, 1997

Consolidated sales$6,312,914 thousands㧔the year ended December 2012 US GAAP㧕

d. Number of shares to be acquired, consideration transferred and state of share ownership before andafter acquisition

Number of shares held beforechangeNumber of shares to be acquired

0 shares(number of voting rights:  0)
(voting rights holding ratio: 0.0%)
37,756,306 shares4
Approx. USD 1.105 billion
In addition to the above monetary amount, a number of common shares ofConsideration transferred

the U.S. subsidiary representing 43% of the issued and outstanding commonshares (ratio after the consolidation of Brightstar which is described ina.Overview of consolidation) will be issued as consideration.
Acquisition-related costs: TBD)
37,756,3064

Number of shares held after change(number of voting rights: 37,756,306)5(voting rights holding ratio: 100 %)Notes:
4. Consisting of 18,206,692 common shares and 19,549,614 preferred shares.
5. Assuming conversion of all preferred shares to common shares.

15. First-time adoption of IFRSs(1) Transition to IFRSs financial reporting
The Company first prepared condensed interim consolidated financial statements in accordance with IFRSs from thethree-month period ended June 30, 2013, which is the first quarter of the fiscal year ending March 31, 2014.
Accounting policies adopted by the Company are described in “Note 3. Significant accounting policies.”
The latest consolidated financial statements prepared in accordance with JGAAP are for the year ended March 31,
2013. The date of transition to IFRSs is April 1, 2012.
IFRS 1, in principle, requires first-time adopters to apply IFRSs retrospectively.

75

SoftBank Corp. Consolidated Financial Report
For the six-month period ended September 30, 2013



However, as exceptions, the retrospective application of some aspects of IFRSs is prohibited, and they shall beapplied prospectively from the date of transition to IFRSs. The following exceptions are applicable to theCompany:a. Accounting estimates
With regards to accounting estimates used for consolidated financial statements in accordance with IFRSs, newinformation received afterward is not reflected, for the estimates used under IFRSs to be consistent withestimates used when the financial statements under JGAAP were prepared.
b. Non-controlling interests
The Company applies the following requirements of IFRS 10 “Consolidated Financial Statements”
prospectively from the date of transition to IFRSs:
㨯 the requirement that total comprehensive income is attributed to the owners of the parent and to thenon-controlling interests even if this results in the non-controlling interests having a deficit balance; and㨯 the requirements for accounting for changes in a subsidiary that do not result in a loss of control.
IFRSs also grant first-time adopters to voluntarily elect to use exemptions from some requirements of IFRSs.
Company applied the following exemptions:Thea. Business combinations
The Company has elected not to apply IFRS 3”Business Combinations,” retrospectively to businesscombinations that occurred before the date of transition to IFRSs.
b. Translation differences for foreign operations
The Company has transferred all cumulative translation differences from other comprehensive income toretained earnings on the date of transition to IFRSs.
c. Share-based payments
The Company does not apply IFRS 2 “Share-based Payment” to a portion of stock options that were vested
before the date of transition to IFRSs.
d. Compound instruments
The Company does not apply IAS 32 “Financial Instruments: Presentation” to the compound instruments withno outstanding liability balance at the date of transition to IFRSs.
The Company has made necessary adjustments to the consolidated financial statements prepared in accordance with
JGAAP that had already been disclosed, in the course of the preparation of the consolidated financial statements inaccordance with IFRSs.
Reconciliations required to be disclosed under the first-time adoption of IFRSs are as follows:
Items that do not affect retained earnings and comprehensive income are included in “Reclassification” of thereconciliation. Differences in the scope of consolidation under IFRSs from JGAAP are included in “Differences inthe scope of consolidation.” Items that affect retained earnings or comprehensive income are included in“Differences in recognition and measurement.”
The amounts presented in the consolidated financial statements prepared in accordance with JGAAP for the years
ended on or before March 31, 2013, were rounded down to the nearest million yen. As the amounts presented in
the condensed interim consolidated financial statements prepared in accordance with IFRSs from the three-month
period ended June 30, 2013, are rounded off to the nearest million yen, the amounts under JGAAP presented in thereconciliations are also rounded off to the nearest million yen.

76

SoftBank Corp. Consolidated Financial Report
For the six-month period ended September 30, 2013

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

JGAAPReclassification

Differences in Differences inthe scope of recognition andconsolidation
measurement Notes

Presentation
under IFRSs

IFRSs

AssetsCurrent assets
Cash and deposits
Notes and accounts
receivable - tradeMarketablesecurities

1,016,252(1,693)

6,554-

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

4,575(4,575)---

10,399--10,399Other financial
assets

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

2,690

7,450

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

171,195

1,959,111

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

1,021,113
ED

786,90285,014

1,296,393-

22,07658,716B, I

1,377,185

780,243-

1,211(3,543)

A

777,911

310,151(310,151)---

36,121

310,151641(6,590)340,323

338,198(338,198)---

201,465

7,292

(231)

G

208,526

185,040(22,081)

155,640E

318,599

Deferred tax assets

104,327

56,469-22,613

Other assets

134,077(64,264)

77

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

15,957---

Total fixed assets

2,983,553

56,4699,216

242,205

3,291,443

Deferred charges

5,700

-

21

(5,721)-

4,899,705(72,751)

15,921

407,679

5,250,554

Total assets

AssetsCurrent assets
Cash and cash
equivalents
Trade and otherreceivables

183,409
D,I

Note: Described in “(10) Notes to the differences in recognition and measurement.” on page 94.

77

85,490

Other current assets

Total current assets
Non-current assets
Property, plant andequipment

Goodwill
Intangible assets

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

SoftBank Corp. Consolidated Financial Report
For the six-month period ended September 30, 2013

(Millions of yen)
Presentation
under JGAAP

JGAAPReclassification

Differences inthe scope of
consolidation

Differences inrecognition andmeasurement

Notes

Presentation
under IFRSs

IFRSs

Liabilities
Current liabilities

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

716,824-

209,847E,I



926,671

190,533

747,461

22,65015,188D

975,832

403,168(403,168)

-

-



-

144,988(144,988)

-

-



-

835,053(835,053)

-

-



1,206

-

-



1,206

Income taxes payables

125,116(2,614)

5706



123,213

Current portion oflease obligations

152,683(152,683)

-

-



-

1,456

-

-



1,456

72,184(1,191)

174

22,988



94,155

1,923,725(72,750)

22,829248,729



2,122,533

Other current liabilities
Total current liabilities

D,F

Long-term liabilities


Corporate bonds
Long-term debt

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

Liabilities andequityCurrent
liabilities
Interest-bearing
debt
Trade and otherpayables

1,425,264-

338,009459,900(459,900)-

560,070(560,070)

-

9,711

26,069

1,390

-

-

-

20,60340-

20,370-(313)

25,294



45,351

32,074(32,074)

-

-



-

347,700(347,700)

-

-



-

14,953

105,273(55,835)(9,999)E,I

1,763,273

-



-

-



-




37,17014,953
20,64340,146

D,F


79,585
Total long-term
liabilities

1,540,340(1)

15,797

404,839Total liabilities

3,464,065(72,751)

38,626

653,568 4,083,508

Note: Described in “(10) Notes to the differences in recognition and measurement” on page 94.

78

1,960,975

Other financial
liabilities
Income taxes
payablesProvisions
Other current
liabilities
Total current
liabilities
Non-current
liabilities
Interest-bearing
debt

Other financial
liabilities
Defined benefit
liabilities
Provisions
Deferred tax
liabilities

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

SoftBank Corp. Consolidated Financial Report
For the six-month period ended September 30, 2013

(Millions of yen)
Presentation
under JGAAP

JGAAPReclassification

Differences in Differences inthe scope of recognition andconsolidation measurement

Notes

Presentation
under IFRSs

IFRSs

EquityShareholders’equityCommon stock

213,798---

Additional paid-in
capital236,563898-

13,306

Retained earnings
Less: Treasury stock
 


E


530,534-(3,335)(121,615)

(22,947)

-

-

-



10,567(993)(30,827)-(10,567)

-

993

-

30,827-

66,686

213,798
250,767
(10)



(21,253)

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

405,584

(22,947)

 C,E

45,433

















-

-

-

-

892,635

Stock acquisitionrights

898

(898)

-

-

Minority interests

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

Total equity
Total liabilities andequity1,435,640-(22,705)(245,889)  1,167,046

4,899,705(72,751)

15,921

407,679



79

Accumulated
othercomprehensive
income--Note: Described in “(10) Notes to the differences in recognition and measurement” on page 94.

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

A,B
 E,F





Total equity
attributable toowners of theparent274,4115,250,554

Non-controllin
g interests
Total equity
Total liabilities
and equity

SoftBank Corp. Consolidated Financial Report
For the six-month period ended September 30, 2013

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

JGAAPReclassification

Differences in Differences inthe scope of recognition andconsolidation measurement

Notes

Presentation
under IFRSs

IFRSs

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

1,096,799

287

9,844

-

601,224(14,866)(1,313)203,959

1,106,930

E

789,004

AssetsCurrent assets
Cash and cash
equivalents
Trade and otherreceivables


6,624

42,171(6,624)

-

-





-

15,370--15,370

Other financial assets

8,146

-

-

50,317

Inventories






-



89,23341,655(41,655)--



177,461(91,149)

1,126

1,795



(34,216)

34,216--

1,931,718(96,275)

9,657

205,754

D







 2,050,854


1,458,185-

37,930(32,924)

750,868
349,513(349,513)

1,212-

28,012-

27,622

349,513964(5,916)





B,I



291,629(291,629)--

181,072

7,829

4,298

160,478(18,169)

145,934

104,959

41,655-27,366

Other assets

134,909(66,354)

173

20,940Less:
Allowance for
doubtfulaccounts(16,433)

16,433--

Total fixed assets
Deferred charges

3,101,252
5,147

41,655-29,93916

Total assets

5,038,117(54,620)

39,612




















G

1,463,191


D,I

Non-current assets
Property, plant andequipment

Goodwill

372,183

Intangible assets-

288,243

Investments accounted
for using the equity
methodOther financial assets

173,980

Deferred tax assets

89,668Other non-current
assetsTotal current assets

780,092-

193,199

E







187,710(5,163)Total non-current assets 3,360,556


388,301

 5,411,410

Total assets

Note: Described in “(10) Notes to the differences in recognition and measurement” on page 94.

80



 A



Deferred tax
assetsOther current assets

SoftBank Corp. Consolidated Financial Report
For the six-month period ended September 30, 2013

(Millions of yen)
Presentation
under JGAAP

JGAAPReclassification

Differences in Differences inthe scope of recognition andconsolidation measurement

Notes

Presentation
under IFRSs

IFRSs

Liabilities
Current liabilities

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

Income taxes payables
Current portion of leaseobligations

Other current liabilities

Total current liabilities

834,853-

227,970

190,347

519,723

26,211

12,797453,140(453,140)-- 

190,552(190,552)--

591,218(591,218)--

Liability for
retirement benefits

1,062,823

D

749,078
-









-

1,812

-

-





1,812

140,839(2,749)

7

934





139,031

173,485(173,485)

-

-





1,452

-

- 



68,285(1,316)275

22,4101,807,866(54,620)

26,493

264,111Long-term liabilities

Corporate bonds
Long-term debt



E,I



D,F















252,448E,I

1,452
89,6542,043,850

22,201

1,871,289

414,900(414,900)

-

- 



-

628,644(628,644)

-

- 



-

11,24826,129

(348)





37,029

-

-

-





14,78521,01046- 18,6671(279)

24,352



42,741



21,056

Deferred tax liabilities
Allowance for point
mileage
Lease obligations

28,611(28,611)

-

-





-

488,494(488,494)

-

- 



-

Other liabilities

115,368(68,250)(10,531)

42,431

D,F






2,065,918

4,109,768

1,709,469

0

37,566

318,883

Total liabilities

3,517,335(54,620)64,059582,994 Note: Described in “(10) Notes to the differences in recognition and measurement” on page 94.

81

79,018Total long-term liabilities



Other financial
liabilities
Income taxes
payables-

1,596,640

14,785

Liabilities andequityCurrent
liabilities
Interest-bearing
debt
Trade and otherpayablesProvisions
Other current
liabilities
Total current
liabilities
Non-current
liabilities
Interest-bearing
debt

Other financial
liabilities
Defined benefit
liabilities
Provisions
Deferred tax
liabilities

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

SoftBank Corp. Consolidated Financial Report
For the six-month period ended September 30, 2013

(Millions of yen)
Presentation
under JGAAP

JGAAPReclassification

Differences in Differences inthe scope of recognition andconsolidation
measurement

Notes

Presentation
under IFRSs

IFRSs

EquityEquityEquityattributableto owners of
the parent
Common stock
Additional
paid-in
capitalRetainedearnings
Treasury stock
Accumulated
other comprehensive
incomeShareholders’ equity
Common stock

221,021---Additional paid-in
capital

192,558922-

12,815Retained earnings

655,867-(5,430)(74,234)

Less: Treasury stock(22,873)

-

-

-



(39,942)-

70,819


E


(10)

(823)

(39,329)

(210)

-

823

-

39,329-

576,203(22,873)

C,E,G


210

206,295

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

221,02130,877



-













-

-

-

-

1,011,523








-

A,B
 E,F



290,119

Stock acquisitionrights

922

(922)

-

-

Minority interests

513,229-(19,017)(204,093)

Total equity
Total liabilities andequity1,520,782-(24,447)(194,693)  1,301,642

5,038,117(54,620)

39,612

388,301

Note: Described in “(10) Notes to the differences in recognition and measurement” on page 94.

82



5,411,410

Total equity
attributable toowners of theparentNon-controlling interests
Total equity
Total liabilities
and equity

SoftBank Corp. Consolidated Financial Report
For the six-month period ended September 30, 2013

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

JGAAP

Differences
Differences inin the scope of recognition andconsolidation measurement Notes

Reclassification

Presentation
under IFRSs

IFRSs

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

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

26,174

26,516

221,430

4,704

43,846(4,704)--

227,235

2,004

-

8,021

2,401

-

50,580(50,580)--

490,964(370,795)

747

6,232

(30,219)

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

106,095

227,662

1,657,640-

208,596(35,621)734,407-

138,978

54,014

383,733(383,733)--

36,805

383,733

109,844(5,489)870,608(870,608)--

458,823(259,022)

8,863




D,E















D

(2,197)

172,693

99,96750,580(21)

24,864

Other assets

158,558(69,274)

13,90225,996Less:
Allowance for
doubtfulaccounts(16,909)

16,909--Deferred tax
assets

229,239

Other financial assets

54,268Inventories

-










B,I






927,399





-












Non-current assets
Property, plant andequipment

1,830,615


 A

G

Total current assets

2,786,019

Goodwill
Intangible assets

524,893-

Investments
accounted for using
the equity method
Other financial
assets

208,664


E




D,H,I



634,647
175,390
129,182Deferred tax assets
Other non-current
assets

3,924,809

50,581

210,080

245,320

Deferred charges

8,880

-

9

(8,889)

-6,524,886(88,354)

316,184

464,093

7,216,809

Note: Described in “(10) Notes to the differences in recognition and measurement” on page 94.

83

Other current assets

127,148

Total fixed assets

Total assets

Trade and otherreceivables-
464,151

1,439,057
936,307

AssetsCurrent assets
Cash and cash
equivalents

4,430,790

Total non-current assets

Total assets

SoftBank Corp. Consolidated Financial Report
For the six-month period ended September 30, 2013

(Millions of yen)
Presentation
under JGAAP

JGAAPReclassification

Differences in Differences inthe scope of recognition andconsolidation measurement

Notes

Presentation
under IFRSs

IFRSs

Liabilities
Current liabilities

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

1,243,412

52,424

238,292



E,I

1,534,128

194,654696,218

63,70518,092

D

972,669

813,491(813,491)

-

-





-

205,000(205,000)

-

-





-

751,690(751,690)

-





-

4,833

-

-





4,833

Income taxes payables

179,559(3,096)

4,653

934





182,050

Deferred tax liabilities
Current portion of leaseobligations

71,975(71,975)

-

-





-

192,603(192,603)

-

-





-

1,252

350

-





1,602

181,212(68,189)

4,299

25,312



142,634

2,590,184(160,329)

125,431282,630

2,837,916



Other current liabilities
Total current liabilities
Long-term liabilities

Corporate bonds
Long-term debt

Liability for retirement
benefits
Deferred tax liabilities

1,721,366

188,231

264,128

734,900(734,900)--

354,291(354,291)--

12,981

25,673-

D,F



2,173,725





-





-

-





38,654--

14,506

20,847918-

17,94071,975

5,879

23,834

119,628





-



-

14,506

Allowance for point
mileage
Lease obligations

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

Other liabilities

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

48,136E,I

21,765D,F

80,187Total long-term liabilities

1,828,243

71,975

212,149

336,098

2,448,465

Total liabilities

4,418,427(88,354)

337,580

618,728

5,286,381

Note: Described in “(10) Notes to the differences in recognition and measurement” on page 94.

84

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

Other financial
liabilities
Defined benefit
liabilities
Provisions
Deferred tax
liabilities

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

SoftBank Corp. Consolidated Financial Report
For the six-month period ended September 30, 2013

(Millions of yen)
Presentation
under JGAAP

JGAAPReclassification

Differences inthe scope of
consolidation

Differences inrecognition andmeasurement

Notes

Presentation
under IFRSs

IFRSs

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

429,689

736

(125)

6,404



E

436,704

Retained earnings

753,616-(6,037)(35,491)(10)

712,088

Less: Treasury stock(22,834)

-

-

-



169,842(1)

78,185- 

238,772(22,834)

C,E,G

248,026

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


4,164

(4,164)--



114,158(114,158)--



51,520(51,520)--



1,612,756


Stock acquisition rights
Minority interests
Total equity
Total liabilities andequityEquityEquityattributable toowners of theparentCommon stock
Additional
paid-in capital
Retainedearnings
Less:Treasury
stock
Accumulated
othercomprehensive income

736

(736)

-

- 

-

536,638-(15,233)

A,B(203,733)
 E,F

2,106,459-(21,396)(154,635) 

1,930,428

6,524,886(88,354)

316,184

464,093

7,216,809

Note: Described in “(10) Notes to the differences in recognition and measurement” on page 94.

85

Total equity
attributable toowners of theparent

317,672

Non-controllinginterests
Total equity
Total liabilities
and equity

SoftBank Corp. Consolidated Financial Report
For the six-month period ended September 30, 2013

(5) Adjustment to comprehensive income for the six-month period ended September 30, 2012
(Items related to consolidated statement of income)(Millions of yen)
Presentation
under JGAAP

JGAAPReclassification

Differences inthe scope of
consolidation

Differences inrecognition andmeasurement

Net sales

1,586,109

5,436(2,073)(84,828)

Cost of sales(712,470)(4,999)(3,593)2,794

Gross profit

873,639437(5,666)(82,034)

Notes
D
B,D
F,I


Selling, general andadministrative
expenses(470,877)

591

(492)



1,504,644

(718,268)786,376(357,247)
Operating income402,762

-

-

-

-

-

-




164

482

(7,102)

1,247

4,575



E,G,I



429,129(37,377)G(1,280)

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

Cost of sales
Gross profit
Selling,
general andadministrative expenses

-(38,023)

Net sales


A,B,D
E,F,I

113,531

Presentation
under IFRSs

IFRSs

6,591

(6,591)

-

-



-

(46,343)

46,343--

-

Income fromremeasurement
relating tobusiness
Other
operatingincomeOperatingincomeFinance cost,net
Equity inloss ofassociates

363,010
7,351(7,351)

-

- 



-

(11,696)

11,696--



-358,665-(4,747)36,554(155,818)-13

202,847-(4,734)

390,472

Income before
income tax

(147,944)

Income taxes

242,528(10)


7,861 44,415

Note: Described in “(10) Notes to the differences in recognition and measurement” on page 94.

86

Net income

SoftBank Corp. Consolidated Financial Report
For the six-month period ended September 30, 2013

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

Income before
minority interests

JGAAP

Re-
classification

202,847-

Differences inthe scope of
consolidation

Differences inrecognition andmeasurement(4,734)

44,415

Other
comprehensive
loss

Notes









-

-

242,528



1

1

1



Unrealized loss onavailable-for-salesecurities(10,733)

-

-

5,448


Deferred gain onderivatives underhedge
accounting
Foreign currencytranslation
adjustment

171

-



-



171

(674)

-

-

(39)

Comprehensive
income(8,531)(713)

Share of othercomprehensive
loss ofassociates

(19,795)

-

-

5,438

(14,357)

183,052-(4,734)49,853

228,171

Note: Described in “(10) Notes to the differences in recognition and measurement” on page 94.

87

Cash flow
hedgesExchangedifferences ontranslating
foreign
operations(14,358)

Total othercomprehensive
loss

Items that will
not bereclassified to
profit or loss
Remeasurements ofdefinedbenefit plan
Total items thatwill not bereclassified to
profit or loss
Items that may
bereclassified
subsequently
to profit orloss
Available-forsale financial
assets




28



Share of othercomprehensive
loss of affiliatedcompanies
accounted forusing equity
method(5,285)

(8,559)E

Net income
Other
comprehensive
loss, net of tax





-

Presentation
under IFRSs

IFRSs

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

(6) Adjustment to comprehensive income for the three-month period ended September 30, 2012
(Items related to consolidated statement of income)(Millions of yen)
Presentation
under JGAAP

JGAAPReclassification

Differences inthe scope of
consolidation

Differences inrecognition andmeasurement

Notes

Net sales

819,207

2,399(1,180)(41,726) 

Cost of sales(371,964)(2,121)(1,122)

1,785

Gross profit

447,243278(2,302)

Selling, general andadministrative
expenses(236,606)

Operating income

210,637

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

1,184

(143)



778,700

Net sales

(373,422)

Cost of sales(39,941) 405,278

Gross profit(179,465)

Selling, generaland administrative
expenses



-

-

-

-

-

-

D
B,D
F,I

A,B,D,E,
F,H,I

56,100








-





-





225,813



(27,972)778  E,G,I(27,644)(1,106)(6,601)

1,243





3,614

(3,614)

-

- 



-

(32,220)

32,220

-

- 



-





4,024

(4,024)

-

- 



-

(8,201)

8,201

-

- 



-

177,854-(2,308)1,990

182,031

Presentation
under IFRSs

IFRSs(82,696)-17

95,158-(2,291)





 

G

18,927(10)

194,47312,153 

(70,526)

31,080

123,947

Note: Described in “(10) Notes to the differences in recognition and measurement” on page 94.

88(3,368)

Income fromremeasurement relating
to business
Other operating
incomeOperatingincomeFinance cost, net
Equity inloss ofassociates

Income before
income tax
Income taxes
Net income

SoftBank Corp. Consolidated Financial Report
For the six-month period ended September 30, 2013

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

Reclassification

JGAAP

Income before
minority interests

Differences inthe scope of
consolidation

95,158 

Differences inrecognition andmeasurement(2,291) 

-









Other comprehensiveincome

































-



-



-

31,080

Notes









Unrealized loss onavailable-for-salesecurities






















1,448 - 

Deferred gain onderivatives underhedge accounting

70 Foreign currencytranslation
adjustment(3,828) 3

3(8,960)



-


3








3,069





-

-






- 

-

 

Share of othercomprehensive lossof affiliatedcompanies
accounted for using
the equity method 

Items that will
not bereclassified to
profit or loss








-

E

4,517


70



10



(93)

Comprehensive
incomeCash flow
hedges(9,053)

Share of othercomprehensive lossof associates




-

-

2,989

(8,281)

83,888-(2,291)

34,069115,666

89

Available-forsale financial assets(3,818)(11,270)

Note: Described in “(10) Notes to the differences in recognition and measurement” on page 94.

Remeasurements ofdefinedbenefit plan
Total items thatwill not bereclassified to
profit or loss
Items that may
be reclassified
subsequently
to profit orloss

Exchangedifferences ontranslating
foreign
operations(8,284)

Total othercomprehensive
income loss

Net income
Other
comprehensive
income, net of tax



123,947



Presentation
under IFRSs

IFRSs

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

(7) Adjustment to comprehensive income for the year ended March 31, 2013
(Items related to consolidated statement of income)(Millions of yen)
Presentation
under JGAAP

JGAAPReclassification

Differences inthe scope of
consolidation

Differences inrecognition andmeasurement

Notes

Net sales

3,378,365

10,191

38,823(224,843) 

Cost of sales(1,590,740)(9,522)(22,918)

12,338

1,787,625

669

15,905(212,505) 







Gross profit
Selling, general andadministrative
expenses(1,042,625)

2,574(24,757)

D



B,D
 F,I



270,735


Operating income

745,000

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

1,778

-

-

-

-

-

3,202,536

Net sales(1,610,842)

Cost of sales

1,591,694

Gross profit(794,073)

Selling, generalandadministrative expenses




1,778





-





799,399(88,477)

1,386

6,859  E,G,I



(80,232)(11,050)

(908)

8,295



(3,663)

19,779(19,779)

-

- 



-

(111,565)

111,565

-

- 



-





11,383(11,383)

-

- 



-

(14,103)

14,103

-

- 



-

650,494-(8,374)653,214



A,B,D,
E, F,
H,IPresentation
under IFRSs

IFRSs



73,384G(10)715,504(287,174)

-

1,543

7,964 

(277,667)

363,320-(6,831)

81,348

437,837









 

Note: Described in “(10) Notes to the differences in recognition and measurement” on page 94.

90

Income fromremeasurement relating
to business
Other operating
incomeOperatingincomeFinance cost, net
Equity in lossof associates

Income before
income tax
Income taxes
Net income

SoftBank Corp. Consolidated Financial Report
For the six-month period ended September 30, 2013

(Consolidated statement of comprehensive income)(Millions of yen)
Presentation
under JGAAP

Income before
minority interests

JGAAP
363,320

Reclassification

Differences inthe scope of
consolidation

Differences inrecognition andmeasurement-(6,831)

81,348Other comprehensive
income

Notes









-

437,837

Items that will not
be reclassified to
profit or loss




68

68



68

Unrealized loss onavailable-for-salesecurities
Deferred gain onderivatives underhedge accounting
Foreign currencytranslation
adjustment

Share of othercomprehensive
income ofaffiliatedcompanies
accounted for using
the equity method(8,121)

117,859

65,906

15,270

-

-

-

-

1

(2,723)

-

2,710











12,609

E














-

(50)








821

Comprehensive
incomeAvailable-for-salefinancial assets

115,136

Cash flow hedges

65,856

Exchangedifferences ontranslating
foreign
operations

18,801

Share of othercomprehensive
income ofassociates

190,914-(12)

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

94,796642,187

Note: Described in “(10) Notes to the differences in recognition and measurement” on page 94.

91

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

4,489

204,282

Total othercomprehensive
incomeNet income
Other
comprehensive
income, net of tax






-

Presentation
under IFRSs

IFRSs

Total items that
may bereclassified
subsequently to
profit or loss
Total othercomprehensive
income, net of tax
Total
comprehensive
incomeSoftBank Corp. Consolidated Financial Report
For the six-month period ended September 30, 2013(8) Notes to the reclassification
The following reclassifications are made for the transition to IFRSs and do not affect retained earnings andcomprehensive income.
a. Under JGAAP, investments in associates were included in investment securities.
separately presented as investments accounted for using the equity method.

Under IFRSs, they are

b. Under JGAAP, short-term borrowings, current portion of corporate bonds and current portion of lease obligations
are presented as separate components and installment payables were included in accounts payable-other andaccrued expenses. Under IFRSs, they are all included in interest-bearing debt (current). In addition, under
JGAAP, corporate bonds, long-term debt and lease obligations (non-current) are presented as separate
components and long-term installment payables were included in other liabilities (long term). Under IFRSs,
they are all included in interest-bearing debt (non-current).
c. Under JGAAP, accounts payable - trade were presented separately. Accounts payable - other (except for
installment payables) were included in accounts payable - other and accrued expenses. Deposits and otherpayables were included in other current liabilities. Under IFRSs, they are all included in trade and otherpayables.
d. All deferred tax assets and liabilities that were classified as current items under JGAAP are classified as
non-current items under IFRSs.
e. Upon transition to IFRSs, sales and cost of sales arising from transactions where the Company is acting as aprincipal are presented on a gross basis. Sales and cost of sales arising from transactions where the Company isacting as an agent are presented on a net basis.
f. Finance income and cost, such as interest expense, that were presented as non-operating income, non-operating
expenses, special income and special loss under JGAAP are presented under finance income (cost), net under
IFRSs.
g. Other reclassifications have been made by aggregating or separating presentation under JGAAP to be consistent
with the presentation under IFRSs.
(9) Notes to the differences in the scope of consolidation
The effect of the review of the scope of consolidation under IFRSs from JGAAP is separately presented in thesereconciliations.
Under JGAAP, Wireless City Planning Inc. (“WCP”), which operates a wireless communications network using
AXGP technology, was accounted for using the equity method, as the Company owns 33.3% of its voting rights.
Upon transition to IFRSs, the Company determined that it has substantial control over WCP and included it into thescope of consolidation considering the fact that the Company constitutes the majority of members of WCP’s board of
directors and that WCP’s business activities significantly depend on the Company.
In addition to the effect above, there is also a following effect in the reconciliation of equity as of March 31, 2013and comprehensive income for the year ended March 31, 2013.
eAccess Ltd. became the Company’s wholly owned subsidiary effective on January 1, 2013. On January 17, 2013,
the Company transferred certain stocks of eAccess Ltd. to 11 companies outside of the Company.
Under JGAAP, the Company’s voting rights in eAccess Ltd. decreased to 33.3% after the transfer of stocks andeAccess Ltd. was accounted for using the equity method. Under IFRSs, the Company determined that it has
substantial control over eAccess Ltd. and included it into the scope of consolidation, as the economic ownership ratioof 99.5% is significantly higher than the percentage of voting rights and the proportion of voting rights is relatively
large compared to other holders of voting rights due to the dispersion of voting rights.
Set out below is the consideration transferred, fair values of assets and liabilities, non-controlling interests, goodwill
and increase from acquisition of control over subsidiaries, recognized in accordance with IFRS 3 “Businesscombinations”, as a result of consolidation of eAccess Ltd. on January 1, 2013:92

SoftBank Corp. Consolidated Financial Report
For the six-month period ended September 30, 2013

a. Consideration transferred, fair values of assets and liabilities, non-controlling interest, and goodwill on theacquisition date.
㧔Millions of yen㧕

Acquisition date
(January 1, 2013)

Consideration transferred1

A

218,296
84,069Current assets
Property, plant and equipment
Intangible assets
Other non-current assets

147,886
109,317

Total assets

379,583

38,311

Current liabilities
Non-current liabilities



Total liabilities

108,073 190,576

Net assets

B

Non-controlling interests2

C

Goodwill

A-(B-C)

298,649

 80,934



404

137,766

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

b. Increase from acquisition of control over subsidiaries(Millions of yen)
Acquisition date
(January 1, 2013)
Cash and cash equivalents held by the acquiree at the time of acquisitionof control
The proceeds from transfer of Class B shares of eAccess Ltd.

29,796

Increase in cash from the acquisition of control over the subsidiary

30,89693

1,100

SoftBank Corp. Consolidated Financial Report
For the six-month period ended September 30, 2013(10) Notes to the differences in recognition and measurement
Major adjustments to the retained earnings are as follows:(Millions of yen)

As of
As of
April 1, 2012
September 30, 2012
530,534
655,867(3,335)(5,430)(2,750)(49,256)

28,756(50,616)

As ofMarch 31, 2013
753,616(6,037)

60,798(50,914)(30,827)(19,919)(20,370)(14,404)(231)(30,827)(17,369)(19,670)(14,404)
4,338(30,827)(17,048)(14,517)(14,338)
8,042(4,203)(6,590)26,935(121,615)
405,584(3,515)(5,881)
34,954(74,234)
576,203(3,801)(2,850)(5,094)35,058(35,491)
712,088

Six-month period
ended
September 30, 2012

Three-month period
ended
September 30, 2012

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

Major adjustments to income before income tax are as follows:(Millions of yen)

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

94

358,665(4,747)
31,661(1,285)2,551(2,020)(2)
4,569

177,854(2,308)

15,862(518)-

Year ended
March 31, 2013

650,494(8,374)

64,022(1,307)

1,637
(596)
(7)
     1,987

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

689       325
391       237
36,554      18,927
390,472    
194,473(3,801)
1,353
970
73,384
715,504

SoftBank Corp. Consolidated Financial Report
For the six-month period ended September 30, 2013

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

As ofApril 1, 2012

(Consolidated statements of financial position)

As of
September 30, 2012

As ofMarch 31, 2013

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

28,390366

60,751
47

Increase (decrease) in retained earnings(2,750)28,756

60,798

 Six-month period(Consolidated statements of financial position)

Three-month period
Year ended
ended
ended
September 30, 2012  September 30, 2012  March 31, 2013

Decrease in selling, general and administrative
expenses
Increase in income before income tax

31,661

15,86264,022

31,661

15,86264,022

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

As ofApril 1, 2012

(Consolidated statements of financial position)

As of
September 30, 2012

As ofMarch 31, 2013

Decrease in property, plant and equipment(46,257)(47,542)(47,564)

Increase in non-controlling interests(2,999)(3,074)(3,350)Decrease in retained earnings(49,256)(50,616)(50,914)

Three-month period
Year ended

ended
ended

March 31, 2013
September 30, 2012 September 30, 2012
(1,413)(632)(1,917)

 Six-month period(Consolidated statements of financial position)
Increase in cost of sales
Decrease in selling, general and administrative
expenses
Decrease in income before income tax   

95

128

114

610

 (1,285)(518)(1,307)

SoftBank Corp. Consolidated Financial Report
For the six-month period ended September 30, 2013

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

As ofApril 1, 2012

As of
September 30, 2012

As ofMarch 31, 2013

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

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

10,83340,841(17,369)(10,833)

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

Increase in other non-current liabilities(38,942)(40,841)(45,990)

Decrease in retained earnings(19,919)(17,369)(17,048)

Six-month period
ended
September 30, 2012
(84,828)
2,723

Three-month period
ended
September 30, 2012
(41,726)
1,623

84,656

41,740216,213

2,551

1,637

2,871

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

96

Year ended March
31, 2013(224,843)
11,501

SoftBank Corp. Consolidated Financial Report
For the six-month period ended September 30, 2013

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

As ofApril 1, 2012

As of
September 30, 2012

As ofMarch 31, 2013

Increase in trade and other receivables
Increase in other financial assets (non-current)
Increase in interest-bearing debt (current)
Increase in interest-bearing debt (non-current)
Increase in additional paid-in capital (before tax)
Increase in accumulated other comprehensive
income (before tax)
Decrease in non-controlling interests
Other

163,745
155,640(205,229)(253,987)(22,366)

203,959
145,934(227,637)(252,391)(22,020)

220,204
172,693(238,245)(264,087)(22,035)(56,170)(62,845)(71,529)

204,413(6,416)204,151(8,821)

204,135(15,653)

Decrease in retained earnings(20,370)(19,670)(14,517)97

SoftBank Corp. Consolidated Financial Report
For the six-month period ended September 30, 2013

(Consolidated statements of income)Six-month period
ended
September 30, 2012

Three-month period
ended
September 30, 2012

Year ended March
31, 2013(2,363)(1,319)(5,463)

343

723

6,556

(2,020)

(596)

1,093

Increase in selling, general and administrative
expenses
Decrease in finance cost
Increase (decrease) in income before income tax(Consolidated statements of comprehensive
income)Six-month period
ended
September 30, 2012

Three-month period
ended
September 30, 2012

Year ended March
31, 2013

5,448

3,069

12,609

5,448

3,069

12,609

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

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

As ofApril 1, 2012

As of
September 30, 2012

As ofMarch 31, 2013

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

Decrease in retained earnings(14,404)(14,404)(14,338)

Six-month period
ended
September 30, 2012
0Three-month period
ended
September 30, 2012
(1)

As of
March 31, 2013

(2)

(6)

(81)

(2)

(7)

(90)

(Consolidated statements of income)Decrease (increase) in cost of sales
Increase in selling, general and administrative
expenses
Decrease in income before income tax

98

(9)

SoftBank Corp. Consolidated Financial Report
For the six-month period ended September 30, 2013

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

The effect arising from the differences is summarized as follows:(Millions of yen)(Consolidated statements of financial
position)
Increase (decrease) in investments accounted
for using the equity method
Decrease (increase) in accumulated othercomprehensive income (before tax)

As ofApril 1, 2012

As ofMarch 31, 2013

As of
September 30, 2012

(231)

4,298

8,863

-

40

(821)

Increase (decrease) in retained earnings

(231)

4,338

8,042

(Consolidated statements of income)Six-month period
ended
September 30, 2012

Three-month period
ended
September 30, 2012

As ofMarch 31, 2013

Increase in finance cost
Increase in equity in income of associates

(6)
4,575

(3)
1,990

(22)
8,295

Increase in income before income tax

4,569

1,987

8,273

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

As ofApril 1, 2012

As of
September 30, 2012

As ofMarch 31, 2013

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

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

Three-month period
ended
September 30, 2012

As ofMarch 31, 2013

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

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

99

SoftBank Corp. Consolidated Financial Report
For the six-month period ended September 30, 2013

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

As of
April 1, 2012

As ofMarch 31, 2013

104,973 

14,619 

11,943(22,676) (19,492) (16,059)(4,619) (332) (47)

(84,023) (57) 

(41)

2,142 1,747 1,354

(4,203) (3,515) (2,850)Decrease in retained earnings

Six-month period
ended
September 30, 2012

(Consolidated statements of income)

As of
September 30, 2012

Three-month period
ended
September 30, 2012

Year ended March
31, 2013

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

523

259

1,066

12

7

12

154

59

275

Increase in income before income tax

689

325

1,353

(11) Notes to reconciliation of cash flows
The adjustment of cash flows for the six-month period ended September 30, 2012
(Millions of yen)(Consolidated statements of Cash Flows)

Cash flows fromoperating activities

Cash flows frominvesting activities

Cash flows fromfinancing activities

473,351(326,034)(61,506)(2,123)(15,612)

22,201JGAAP
Differences in the scope of consolidation

Differences in recognition and measurement
a. Securitization transactions
b. Measuring financial liabilities by
amortized costs
Other
Total differences in recognition andmeasurement
IFRSs

100



(19,117)-

19,117

(993)

-

993

(4,146)(2,016)

3,008(24,256)(2,016)23,118446,972(343,662)(16,187)

SoftBank Corp. Consolidated Financial Report
For the six-month period ended September 30, 2013

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

Cash flows fromoperating activities

Cash flows frominvesting activities

Cash flows fromfinancing activities

894,460(919,770)

365,494

5,687

41,725

20,667

JGAAP
Differences in the scope of consolidation

Differences in recognition and measurement
a. Securitization transactions
b. Measuring financial liabilities by
amortized costs
Other
Total differences
IFRSs(51,081)-

51,081(23,571)-

23,571(12,470)

3,901

10,664(87,122)

3,901

85,316

813,025(874,144)

471,477

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


101