Analyst 20120427 001

Earnings Results for the Year Ended March 31, 2012

Analyst Meeting

April 27, 2012SOFTBANK CORP.

May 1, 2012 Version

2

DisclaimerThis material was prepared based on information available and views held at the time it was made. Statements in this material that are not historical facts, including, without limitation, plans, forecasts and strategies are “forward-looking statements.”

Forward-looking statements are by their nature subject to various risks and uncertainties, including, without limitation, a decline in general economic conditions, general market conditions, technological developments, changes in customer demand for products and services, increased competition, risks associated with international operations, and other important factors, each of which may cause actual results and future developments to differ materially from those expressed or implied in any forward-looking statement. With the passage of time, information in this material (including, without limitation, forward-looking statements) could be superseded or cease to be accurate.

SOFTBANK CORP. disclaims any obligation or responsibility to update, revise or supplement any forward-looking statement or other information in any material or generally to any extent. Use of or reliance on the information in this material is at your own risk.

Information contained herein regarding companies other than SOFTBANK CORP. and other companies of the SOFTBANK Group is quoted from public sources and others. SOFTBANK CORP. has neither verified nor is responsible for the accuracy of such information.

Regarding Segment InformationThe “Accounting Standard for Disclosures about Segments of an Enterprise and Related Information”

and related “Guidance on the Accounting Standard for Disclosures about Segments of an Enterprise and Related Information”

are being applied from FY2010 and are hereafter referred to as the “new standard.”

Segment financial results for FY2009 are shown

based on the new standard

for comparison purposes only and have neither been audited nor reviewed by our independent auditors. The new standard has not been applied to all financial information up to and including FY2008 presented herein.

3

AccountingConsolidated P/L Analysis 5Consolidated B/S Analysis 17Consolidated CF Analysis 27

Broadband Infrastructure Segment 67Fixed-line Telecommunications Segment 71Mobile Communications Segment 76

Operation

Finance

4

65

32

Kazuko Kimiwada

General Manager

Accounting, Internal Control

SOFTBANK CORP.

Accounting

4

5

Consolidated P/L Analysis

Accounting

6

126.8 151.2

126.9163.2

129.7

129.4

146.0

120.4

FY10 FY11

156.6

158.9

166.6

159.5

175.8

197.3

142.4

147.0

0

100

200

300

400

500

600

700

FY10 FY11

700.8 764.2

764.1 771.4

804.2

862.5784.8

754.7

0

1,000

2,000

3,000

FY10 FY11

19.494.7

122.4

57.4

32.8

65.4

63.6

47.4

FY10 FY11

+6.6%

<bn JPY>

Q1

Q2

Q3

Net Sales Operating Income Ordinary Income Net Income

Consolidated P/L Summary

+7.3%

629.1

189.7

3,004.6

520.4

675.2

313.7

3,202.4 +10.2%

+65.4%

573.6Q4

-136.6-113.7

360.9343.6

293.6283.6

367.6356.5

171.9190.0

1,944.5 2,144.8

3,004.63,202.4

FY10 FY11 7

Others

Elimination

<bn JPY>

Mobile Communications

Broadband Infrastructure

Fixed-line Telecommunications

Internet Culture


Broadband InfrastructureFixed-line Telecommunications

Internet Culture

-

Increase in telecom service revenue +161.8bnIncrease in subscribers +175.4bnDecrease in ARPU -16.6bn

-Increase in revenue from sales of mobile

+38.5bnhandsets and accessories etc.

Decrease in sales of Yahoo! BB ADSL -39.3bnIncrease in sales of Yahoo! BB hikari with FLET’S +13.3bn

Increase in revenue from network provision to Group companies

such as SBM

Decrease in MYLINE sales

Increase in revenue from listing and display advertising, game related services, information listing services, Yahoo! Shopping

Consolidated Net Sales

+200.3bn

-18.1bn

+11.0bn

+10.0bn

+197.7 (+6.6%)

(Main factors for the change)

8

- Decrease in net sales - Decrease in telecom service line usage fees mainly reflecting

a decrease in number of ADSL lines


<bn JPY>



Internet Culture

Others

Mobile Communications- Increase in net sales +200.3bn- Increase in COS, SGA -173.5bnIncrease in COS for mobile handsets in line with a rise in the number of mobile

handsets shippedIncrease in depreciation & amortization on installation of additional base stationsIncrease in sales commission and sales promotion expense in line with a rise in

the number of mobile handsets sold


Fixed-line Telecommunications- Increase in net sales +11.0bn- Decrease in COS, SGA +8.9bn

Decrease in telecom equipment fees reflecting revised access charges between operators

Decrease in lease expenses due to an increase in equipment for which the lease term have been expired

Decrease in marketing sales commissions on a decline in new OTOKU Lineacquisitions

Internet Culture-Increase in net sales +10.0bn

Elimination

Consolidated Operating Income

+26.8bn

-8.8bn

+19.9bn

+6.5bn

+46.1 (+7.3%)

(Main factors for the change)

150.3 156.8

57.938.043.1

34.3

429.2402.4

629.1675.2

FY10 FY11

-18.1bn

+9.3bn

520.4 573.6

7.146.1

-62.2-104.0

-24.9

-2.7

-25.7

-19.2

17.3 11.3

-101.6-108.7

-112.9-126.0

9

<bn JPY>

Increase in operating incomeFY10

Ordinaryincome

FY11Ordinary income

Non-operating Income/Expense Ordinary Income

Non-operating Income/Expense and Ordinary Income

7.1

Net of increase in non-operating income/expense

+53.2 (+10.2%)

Non-operating income/expenses

(NET)


(NET)

(Total non-operating expenses) (Total non-operating expenses)

Non-operating Income

Other non-operating expensesNon-operating income/expenses (NET)

Interest expense

Decrease in interest expense

41.8


(NET)

*Mainly refinancing related expense of JPY 23.9bn (Q2: JPY 12.6bn, Q3:JPY 11.2bn) associated with refinancing SBM loan (the loan procured under a whole business securitization scheme in November 2006 as part of the loan for procurement of Vodafone K.K. acquisition finance) .

Refinancing related expense*

FY10 FY11

*

-19.0

6.6

88.3

20.1

2.8

9.2

4.7

-21.8

-13.9

-8.7

-4.2

-45.3

-39.8

58.6

-59.1-54.0

117.7

14.2

10

Special Income/Loss< bn JPY>

FY10 FY11

+98.4

Special income/loss(NET)

Special income/loss(NET)

Gain on sale of investment securities related to Yahoo! Inc. shares JPY 76.4bn(*1)

Special income/loss (NET)(7) Other special loss

(1) Gain on sale of investment securities(2) Dilution gain from changes in equity interest

*1. See page 29 of this presentation for details.2. Occurred in relation to the repayment of the SBM loan in October 2011

(3) Other special incomeDilution gain from changes in equity interest mainly relating to IPO of RenRen Inc.

(Total special income)

(Total special income)

(Total special loss)(Total special loss)

(5) Loss on liquidation of subsidiaries and affiliates

(1)

(2)

(3)

(4)

(5)

(6)

(4) Premium on advanced redemption of debt security

(7)

(6) Valuation loss on investment securities

(*2)

Loss on liquidation of subsidiaries and affiliates:relating to the liquidation of SOFTBANK’s subsidiary Charlton Acquisition LLP which held the Betfair Group plc shares as a holding company in the UK.

Valuation loss on investment securities: mainly associated with a drop in the stock price of Betfair Group plc

313.7

189.7

151.6

21.75.8

196.5

58.2

632.2313.7377.5

63.7

11

Net Income<bn JPY>

FY11 Net Income

Income before income taxes &

minority interests

Income taxes:

current

Minority interests

Net income

Income taxes:deferred

Income before minority interests

YoY Increase Factors

FY10Net income

Increase inIncome beforeincome taxes

Increase inIncome taxes

Increase in Minority interests FY11

Net income

+124.0 （+65.4%）

12

(Reference) FY11 Comprehensive Income

Changes during FY11

B/S FY10/Q4Balance

Compre- hensive Income

/loss

(Adjustment)Minority interest

equivalent

(Adjustment)Share of other

comprehensive income of affiliated companies

accounted for using equity method

B/SFY11/Q4Balance P/L

a b c d (a + b –

c + d) (b - c)

Income before minority interests 377.5 63.7 313.7

Other comprehensive lossUnrealized gain/loss on available-for-

sale securities 34.9 -25.7 -2.8 -1.4 10.5

Deferred gain/loss on derivatives under hedge accounting 11.2 -12.6 -0.4 - -0.9

Foreign currency translation adjustment -50.2 +21.3 +0.0 -1.9 -30.8Share of other comprehensive income of affiliated companies accounted for using equity method*

-3.4 - +3.4 -

Total other comprehensive loss -4.0 -20.5 -3.3 - -21.2

Comprehensive income 356.9 60.4 296.5

Comprehensive income attributable to owners of the parent

Net income

Comprehensive income attributable to minority interests

<bn JPY>

* Separately indicates the share of other comprehensive income of affiliated companies accounted for using equity method included in other accounts of comprehensive income

Minority interests in net income

13

A Income taxes: current 196.5(main breakdown)

1. BBM income taxes under consolidated tax return 74.5

2. SBM local taxes (out of scope for BBM consolidated tax return) 44.3

3. Yahoo Japan 64.0

B Income taxes: deferred 58.2(main breakdown)

4. SBM decrease in temporary difference(approximate accounts payable, allowance for point mileage, etc.)

26.2

5. SBM depreciation and amortization adjustments(occurred at time of SBM acquisition)

9.0

6. SBH decrease in temporary difference 26.0

7. SBB utilization of loss carryforwards, decrease in temporary difference, etc. 7.5

8. SBTM record deferred tax assets -18.4

9. Changes in effective statutory tax rate (corporate tax rate reduction19.6, Restoration surtax* -7.1)

12.4

10. Other temporary difference -4.7

Total income taxes (A+B) 254.7

FY11 Main Breakdown of Tax Expenses

Tax and Other Adjustments< bn JPY>

SB: SOFTBANK SBM: SOFTBANK MOBILE BBM: BB Mobile SBB: SOFTBANK BB SBTM: SOFTBANK TELECOM SBH: SOFTBANK Holdings Inc.

*Restoration surtax for Securing Financial Resources Needed to Implement Measures to Recover from the Great East Japan Earthquake

14

FY11 Balance

Deferred Tax Assets and Liabilities (Ref.)< bn JPY>

Deferred tax assets:(main breakdown)

Depreciation and amortization 49.4Loss carryforwards 43.5Valuation of assets and liabilities of acquired consolidated subsidiaries at fair market value 30.2Investment securities 19.9Allowance for doubtful accounts 12.2Allowance for point mileage 12.1Accounts payable – other and accrued expenses 10.7Other 68.9

Gross deferred tax assets 247.5Less: valuation allowance -79.4

Total deferred tax assets 168.0

Deferred tax liabilities:(main breakdown)

Deferred taxable gain on a sale of shares of a subsidiary to a 100% owned subsidiary under Japanese group taxation regime -11.6

Unrealized gain on available-for-sale securities -4.9Others -11.0

Total deferred tax liabilities -27.6

Net deferred tax assets 140.4

15

Rate (%) <ref.> Amount (bn JPY)

Income before income tax 632.2

Statutory income tax rate 40.7% 257.2

(main factors of difference)

- Amortization of goodwill (mainly SOFTBANK MOBILE) 3.8% 24.2

- Changes in statutory tax rate 2.0% 12.4

- Decrease in valuation allowance -5.8% -36.7

- Dilution gain from changes in equity interest, net -1.3% -8.0

- Others 0.9% 5.4

Effective income tax rate 40.3% 254.7

FY11 Reconciliation Between Statutory Tax Rate and Effective Tax Rate

Difference in Tax Rate & Loss Carryforwards (Ref.)

16

Financial Results of Non-consolidated Subsidiaries and Affiliates

Net income/loss, interest-bearing debt at non-consolidated subsidiaries and affiliates not accounted for under the equity method

Number of Companies

Net Income/Loss(after consideration of

economic interest)

Interest-bearing Debt(not within

the SB Group)

Non-consolidated subsidiaries not under the equity method 60 JPY 190mil JPY 110mil

Non-consolidated subsidiaries under the equity method 3 - -

Affiliated companies not under the equity method 26 JPY -390mil N/A

Total 89 JPY -190mil JPY 110mil

SOFTBANK CORP. owns 100% shares issued by WILLCOM, Inc. However, WILLCOM is in the process of reorganization under the Corporate Reorganization Act and SOFTBANK does not have effective control over WILLCOM. Therefore, WILLCOM is not treated as a subsidiary and not included in any of the above figures.

17

Consolidated B/S Analysis

Accounting

18

1,266.2

644.1

835.6

1,026.9

1,910.41,862.6

Mar 2011 Mar 2012

902.5

2,081.0

848.6

1,943.0

2,791.7 2,983.5

Mar 2011 Mar 2012

Fixed Assets

Current Assets Current Liabilities

Long-term Liabilities

<bn JPY>SBM Others

Consolidated B/S Summary

1,125.6

414.6

1,072.8

1,058.8

2,131.6

1,540.3

Mar 2011 Mar 2012

1,118.0

805.6

850.8

793.5

1,923.71,644.4

Mar 2011 Mar 2012

SBM: SOFTBANK MOBILE

19

Assets Mar 2011 Mar 2012 Variance Outline

Current assets 1,862.6 1,910.4 47.8SBM 1,026.9 644.1 -382.8Others 835.6 1,266.2 430.6Cash and deposits 861.6 1,016.2 154.5

SBM 408.0 49.8 -358.2

Increase provided by operating activities (+390.5), outlay due to acquisition of fixed assets (-356.5), repayment of SBM loan（-772.5),Repayment of securitization of installment sales receivables (-49.9),Sale and lease back of equipment newly acquired (procured +299.4, repaid -140.6)

Others 453.5 966.4 512.8SB: Mar 11 (199.0) >> Mar 12 (644.5)

Breakdown: 36th, 37th, & 38th Unsecured Straight Bond issue (+179.1), Borrowings (+439.4), CP (-25.0), Redemption of 25th & 27th Unsecured Straight Bond (-113.5)

Yahoo Japan: Mar 11 (173.8) >> Mar 12 (241.6)

Notes and accounts receivable-trade 657.7 661.2 3.5

SBM 498.1 491.8 -6.2Mobile handset installment sales receivables Mar 11 (252.1) >> Mar 12 (221.2)

including sale of installment sales receivables (-259.5)Telecom revenue receivables Mar 11 (172.3) >> Mar 12 (188.4)Mobile handsets sales receivables (to sales agents) Mar 11 (68.0) >> Mar 12 (75.8)

Others 159.6 169.4 9.7 SBB: Mar 11 (58.5) >> Mar 12 (59.7), SBTM: Mar 11 (44.8) >> Mar 12 (46.3)

Marketable securities 78.0 4.5 -73.5SBM - - -

Others 78.0 4.5 -73.5 SBH: Yahoo! Inc. shares (-73.5) repaid debt by transferring Yahoo! Inc. shares to CITIBANK, N.A.*

Merchandise and finished products 49.8 42.6 -7.2SBM 38.6 30.8 -7.8

Others 11.2 11.7 0.5

Deferred tax assets 90.9 56.4 -34.4SBM 45.2 26.2 -19.0Others 45.6 30.2 -15.3

Others 162.0 168.2 6.1

SBM 68.9 78.6 9.6

Others 93.1 89.6 -3.4 SBH: derivative assets (-22.2) decreased after settlement of forward contract regarding transfer of Yahoo! Inc. shares*

Allowance for doubtful accounts -37.7 -39.0 -1.2SBM -32.0 -33.1 -1.0Others -5.6 -5.8 -0.1

<bn JPY>

Consolidated B/S (1) Current Assets

*See page 29 for details. SB: SOFTBANK SBM: SOFTBANK MOBILE SBB: SOFTBANK BB SBTM: SOFTBANK TELECOM SBH: SOFTBANK Holdings Inc.

20

Assets Mar 2011 Mar 2012 Variance OutlineFixed assets 2,791.7 2,983.5 191.8

SBM 1,943.0 2,081.0 137.9

Others 848.6 902.5 53.8

Property and equipment, net 1,113.4 1,296.3 182.9

SBM 809.6 964.4 154.8

Others 303.8 331.9 28.1

Building and structures 74.8 77.4 2.5

SBM 26.3 26.7 0.4

Others 48.4 50.6 2.1

Telecommunications equipment 840.8 988.5 147.7

SBM 713.5 851.4 137.8 Acquisition of telecommunications equipment (+244.8), Acquisition of antenna equipment (+22.2), depreciation etc. (-108.2)

Others 127.2 137.1 9.8 SBTM: Mar 11 (98.1) >> Mar 12 (98.3)SBB: Mar 11 (23.3) >> Mar 12 (31.3)

Telecommunications service lines 68.8 65.2 -3.6

SBM 7.4 8.0 0.5

Others 61.3 57.1 -4.1 SBTM: Mar 11 (61.3) >> Mar 12 (57.1)

Land 22.8 23.1 0.2

SBM 10.9 11.2 0.2

Others 11.9 11.9 -

Construction in progress 55.6 80.5 24.8

SBM 34.5 49.6 15.1

Others 21.1 30.8 9.6

Other 50.3 61.5 11.2

SBM 16.7 17.3 0.5

Others 33.5 44.2 10.6

<bn JPY>

Consolidated B/S (2) Tangible Assets

SBM: SOFTBANK MOBILE SBB: SOFTBANK BB SBTM: SOFTBANK TELECOM

Acquisition of Fukuoka Yahoo! JAPAN Dome is a transaction recorded for the fiscal year ending March 2013. See page 30 for details.

21

<bn JPY>

Consolidated B/S (3) Intangible Assets, Investments and Other Assets

Assets Mar 2011 Mar 2012 Variance Outline

Fixed assets 2,791.7 2,983.5 191.8Intangible assets, net 1,120.3 1,126.5 6.1

SBM 1,002.0 1,011.0 9.0

Others 118.3 115.4 -2.8Goodwill 839.2 780.2 -58.9

SBM 775.7 724.2 -51.4 Decrease due to regular amortizationOthers 63.5 55.9 -7.5 Decrease due to regular amortization

Software 248.8 310.1 61.2

SBM 220.3 276.8 56.4

Others 28.4 33.3 4.8Other 32.2 36.1 3.8

SBM 5.9 9.9 4.0

Others 26.2 26.1 -0.1Investments and other assets 557.9 560.6 2.7

SBM 131.3 105.5 -25.8Others 426.5 455.1 28.5Investment securities 340.4 338.1 -2.2

SBM 0.8 0.7 -0.0Others 339.5 337.4 -2.1 Early redemption of WBS Class B2 Funding Notes (-30.6)

Deferred tax assets 109.1 104.3 -4.8

SBM 90.7 64.9 -25.7Others 18.4 39.3 20.9

Other 123.3 134.0 10.7SBM 49.3 51.2 1.8Others 73.9 82.8 8.8

Allowance for doubtful accounts (long-term) -15.0 -15.9 -0.9SBM -9.5 -11.4 -1.8Others -5.4 -4.5 0.9

Deferred charges 1.3 5.6 4.3SBM - - -Others 1.3 5.6 4.3

SBM: SOFTBANK MOBILE SB: SOFTBANK

Decreased due to the early redemption of WBS Class B2 Funding Notes* held by SB associated with the complete repayment of the SBM loan.

*Issued by J-WBS Funding K.K. in November 2006 to provide part of the funding for the SBM loan. SB acquired these bonds at face value of JPY 270bn during FY2009.

22

Liabilities Mar 2011 Mar 2012 Variance Outline

Current liabilities 1,644.4 1,923.7 279.3SBM 793.5 805.6 12.1Others 850.8 1,118.0 267.1Accounts payable-trade 193.6 190.5 -3.1

SBM 133.9 120.4 -13.5 Payment for mobile handsets, etc.

Others 59.7 70.1 10.4 SBB: Mar 11 (39.3) >> Mar 12 (41.5)

Short-term borrowings 410.9 403.1 -7.7SBM 49.9 - -49.9 Repayment of securitization of installment sales receivables (-49.9)

Others 361.0 403.1 42.1 SB: Mar 11 (263.6) >> Mar 12 (401.9)SBH: Mar 11 (93.3) >> Mar 12 (-) repayment of borrowings from CITIBANK, N.A.*

Commercial paper 25.0 - -25.0SBM - - -Others 25.0 - -25.0 SB: Mar 11 (25.0) >> Mar 12 (-)

Current portion of corporate bonds 128.5 144.9 16.4SBM - - -

Others 128.5 144.9 16.4SB: Redemption of 25th & 27th Unsecured Straight Bond (-113.5)

Transfer of 28th & 29th Unsecured Straight Bond from long-term liabilities (+95.0)Transfer of Convertible Bonds due 2013 from long-term liabilities (+49.9)

SBTM: Redemption of 2nd Unsecured Straight Bond (-15.0)Accounts payable-other 561.4 835.0 273.6

SBM 453.3 509.7 56.3

Others 108.0 325.3 217.2 SB: Accounts payable–other related to acquisition of preferred stock, etc. issued to Vodafone Group transferred from long-term liabilities in Q1(+200.0) ->Paid on April 2, 2012

Current portion of lease obligations 131.3 152.6 21.3SBM 111.4 126.8 15.3Others 19.8 25.8 5.9

Other 193.5 197.3 3.7SBM 44.8 48.6 3.7 Income taxes payable etc. (local taxes) Mar 11 (29.6) >> Mar 12 (31.8)

Others 148.7 148.6 -0.0Income taxes payable etc. BBM: Mar 11 (50.9) >> Mar 12 (54.1)

Yahoo Japan: Mar 11 (32.4) >> Mar 12 (34.0)

*See page 29 for details. SB: SOFTBANK SBM: SOFTBANK MOBILE SBB: SOFTBANK BB SBTM: SOFTBANK TELECOM SBH: SOFTBANK Holdings Inc. BBM: BB Mobile Vodafone Group: Vodafone International Holdings B.V. and Vodafone Overseas Finance Limited

Consolidated B/S (4) Current Liabilities<bn JPY>

23

Liabilities Mar 2011 Mar 2012 Variance Liabilities

Long-term liabilities 2,131.6 1,540.3 -591.3SBM 1,058.8 414.6 -644.2Others 1,072.8 1,125.6 52.8Corporate bonds 507.3 459.9 -47.4

SBM - - -

Others 507.3 459.9 -47.4

SB: 36th , 37th & 38th Unsecured Straight Bond issue (+180.0)28th & 29th Unsecured Straight Bond transferred to current liabilities (-95.0)Convertible Bonds due 2013 transferred to current liabilities (-49.9)Decrease due to the conversion of Convertible Bonds due 2014 into common stock (-49.9)

Phoenix JT: early redemption of the Subordinated Notes Due 2016 (-32.4)

Long-term debt 1,030.9 560.0 -470.8

SBM 772.5 - -772.5 SBM loan Mar 11 (772.5) >> Mar 12 (-)

Others 258.3 560.0 301.6SB: Mar 11 (257.9) >> Mar 12 (559.0)

Borrowings related to SBM loan refinance (+550.0) Deferred tax liabilities 26.5 20.3 -6.2

SBM - - -Others 26.5 20.3 -6.2

Allowance for point mileage 41.9 32.0 -9.8SBM 41.9 32.0 -9.8 Point service for customers

Others - - -

Lease obligations 199.7 347.6 147.9

SBM 173.4 316.8 143.4

Others 26.3 30.8 4.4

Other 325.0 120.2 -204.8

SBM 70.9 65.7 -5.1

Others 254.1 54.4 -199.6Accounts payable relating to Acquisition of preferred stock, etc. issued to Vodafone Group transferred to current liabilities (-200.0)

Note: Vodafone Group indicates Vodafone International Holdings B.V. and Vodafone Overseas Finance LimitedSBM loan: the loan procured under a whole business securitization scheme in November 2006 as part of the loan for procurement of Vodafone K.K. acquisition financeSB: SOFTBANK SBM: SOFTBANK MOBILE

<bn JPY>

Consolidated B/S (5) Long-term Liabilities

Repayment by SBM loan refinance: 1st SBM loan repayment (July 27 2011): JPY 369.4bn2nd SBM loan repayment (Oct 27 2011): JPY 284.5bn

SMB loan refinance: borrowings by SOFTBANK for total JPY 550.0bn1st borrowing (July 27 2011): JPY 352.5bn2nd borrowing (Oct 27 2011) : JPY 197.5bn

24

Equity Mar 2011 Mar 2012 Variance Outline

Equity 879.6 1,435.6 556.0

Shareholders’ equity 623.3 957.9 334.6

Common stock 188.7 213.7 25.0 Conversion of Convertible Bonds due 2014 into common stock

Additional paid-in capital 212.5 236.5 24.0 Conversion of Convertible Bonds due 2014 into common stock

Retained earnings 222.2 530.5 308.2 Net income (+313.7), dividend (-5.4)

Treasury stock -0.2 -22.9 -22.7 Acquisition of treasury stock

Valuation and translation adjustments -4.0 -21.2 -17.1

Unrealized gain/ loss on available-for-sale securities 34.9 10.5 -24.3 Decrease due to transfer of Yahoo! Inc. shares (-36.7)*

Deferred gain/loss on derivatives under hedge accounting 11.2 -0.9 -12.2 Decrease due to settlement of forward contract regarding

transfer of Yahoo! Inc. shares (-12.6)*

Foreign currencytranslation adjustments -50.2 -30.8 19.3 Recognized as loss on liquidation of subsidiaries and affiliates

relating to the liquidation of Charlton Acquisition LLP (+16.9)

Stock acquisition rights 0.7 0.8 0.1

Minority interests 259.6 498.0 238.3Issuance of preferred securities (restricted voting rights ) by SFJ (+200.0) Yahoo Japan: Mar 11 (215.6) >>Mar 12 (263.2)

<bn JPY>

Consolidated B/S (6) Equity

*See page 29 for details.SFJ: SFJ Capital Limited

2560

80

100

120

140

160

180

200

Mar 09 Jun Sep Dec Mar 10 Jun Sep Dec Mar 11 Jun Sep Dec Mar 12

GBP/JPY (TTM）EUR/JPY (TTM)USD/JPY (TTM)

<JPY> <Reference> Main exchange rate trend

<bn JPY>

-34.4 -36.7 -45.2 -50.2 -49.8 -53.0 -58.8

-30.8-31.6-30.5 -21.8

-51.4-32.5

-80

-60

-40

-20

0

20

40

60


Foreign currency translation adjustments account

[Equity] Foreign Currency Translation Adjustments

450.3

-30.8

451.0451.3401.8399.6451.3401.2

434.1

43.0

-51.2

222.2

311.6

466.8 530.5

-22.9-22.9-11.0

10.5

43.8

34.9

24.3

31.3

14.5

11.2

25.114.5

-58.8-53.0-32.5 -49.8-50.2-30.5

936.6

835.2819.4

470.5

374.0

751.7

619.2

-100

0

100

200

300

400

500

600

700

800

900

1,000


Common stock & additional paid-in capital* Accumulated deficit/retained earningsTreasury stock Unrealized gain/ loss on available-for-sale securitiesDeferred gain/ loss on derivatives under hedge accounting Foreign currency translation adjustmentsShareholders' equity

26

Equity ratio 19.1%

*Includes cash receipts for new stock subscriptions

[Equity] Shareholders’ Equity<bn JPY>

27

Consolidated CF Analysis

Accounting

1,014.5

200.0

338.7

-166.2

-35.2

87.9

-195.6

30.3

-455.0

632.2

847.1

-163.4

275.8

62.5

-19.6-88.2

30.1

-33.3

-124.2

-25.0

600.8

-919.6

179.1

28Note: significant items from the consolidated cash flow statement are shown here.

Purchase of property &equipment & intangibles

Income before income taxes

Depreciation & amortization

Amortization of goodwill

Increase in notes & accounts receivable

trade (non-installment)

Income taxes paid

Proceeds from long-term debt

Repayment of lease obligations

Repayment of long-term debt

Decrease in short-term borrowings, net

Cash and cash equivalents at the beginning of the year

Cash and cash equivalents at the end of the year

<bn JPY>

Issuance of bonds

Mar 11

Mar 12Proceeds from sale and lease back of equipment newly acquired

Consolidated Cash Flow Main Breakdown

Redemption of bonds

Gain on sale of marketable and investment securities, net

Purchase of marketable and investment securities

Income taxes paid -195.6Main Item:BB Mobile‘s income tax under consolidated tax return -71.3SBM local taxes -42.2 Yahoo Japan Consolidation -64.9

Decrease in commercial paper, net

Dilution gain from changes in equity interest, net

Proceeds from sale of marketable and investment securities

Proceeds from

issuance of preferred securities by a subsidiary

Decrease in mobile handset installment receivables

Operating CF+740.2

Investing CF-375.6

Financing CF-196.6

(Note) Cash flow impact from transfer of Yahoo! Inc. shares to CITIBANK and repayment of borrowings by settling forward contract:・Proceeds from sale of marketable

and investment securities: +JPY57.1bn・Repayment of long-term debt: -JPY57.1bn

(see page 29 for details)

Proceeds from advanced redemption ofdebt security

29

Repayment of Borrowings by Transfer of Yahoo! Inc. Shares Impact on Consolidated Financial Statements

Amounts borrowedUSD 1,135mil

Realized gain on forward contracts USD 392mil (no cash transfer)

Shares on book basisUSD 142mil

Offsetting borrowings

Proceeds from sale of marketable and

investment securities USD 743mil

P/L Financing CFB/S

Repayment of debt USD -743mil

Gain on sale of investment securitiesUSD 993mil

$1,135mil

Investing CF

Same amount

Land: 49.3bnBuildings 34.5bnBuildings 38.2bn

30

(Reference)Accounting Treatment for Acquisition of Fukuoka Yahoo! JAPAN Dome

FY2011

BS

Not recorded on the balance sheet Lease obligations

87.6bn

FY2012 - July 2015 -

-74.5bn((1) - (2) x 3 years 4 months)

CF

87.6bn

Finance leases in which the ownership of leased assets is transferred to lessees at the end of lease periods

Recorded on the consolidated financial statements

Acquisition of trust beneficiary interest

(Payment of 74.5bn)

Lease payments (Operating CF)-5.0bn/year Purchase of property and equipment*3

(Investing CF)-4.0bn/year

PLLease expense-5.0bn/year

Interest expense -1.0bn/yearDepreciation -1.1bn/year

DepreciationApprox. -1.1bn/year

Interest expense (Operating CF)-1.0bn/year

*1 GIC: the Government of Singapore Investment Corporation*2 As financial statement as of the end of February, the fiscal year end of FSHM, which entered into the contract, is reflected in the consolidated financial statements, this transaction will be recognized in the fiscal year ending March 31, 2013.*3 Payments of lease obligations for the related assets are recorded as “Purchase of property and equipment”

in investing activities due to the fact that these payments are

applied to the purchase price for the future acquisition of the trust beneficiary interest under the contract. *4 Amounts in BS, CF and PL are approximated calculations.

Old Contract (lease) New Contract (lease & acquisition of trust beneficiary interest

)

Finance leases in which the ownership of leased assets is not transferred to lessees at the end of lease periods

Accounted for as operating lease transactions with lease related notes

The SOFTBANK Group reached an agreement

with GIC*1

group on the acquisition of the Fukuoka Yahoo! JAPAN Dome from GIC group

on March 24, 2012

. (Fukuoka SOFTBANK HAWKS Marketing Corp.*2

(or FSHM) will acquire a

trust beneficiary interest related to the dome on July 1, 2015)This contract constitutes an integral part of the dome lease contract.

Land: 49.3bn83.8bn

Purchase of property and equipment(Investing CF)

(1)

(2)

(3)

Declined by depreciation(3) x 3 years 4 months

Applied the former Accounting Standard for Lease Transactions,

thus accounted for as operating lease

<JPY>

32

Finance

Yoshimitsu Goto

General Manager Finance

SOFTBANK CORP.

1. Revise net interest-bearing debt reduction target

2. Enhance shareholder return, significant dividend increase

33

Achieved improvement of Financial Status

34

Achieved Strong Financial Status

March 2009 March 2012

Share price JPY 1,256 JPY 2,447Net interest-bearing debt JPY 1.9t JPY 0.5tNet interest-bearing debt

/EBITDA multiple 2.9 times 0.5 times

Net debt equity ratio 5.2 times 0.6 times

5 year CDS spread Exceeds 2,000bp 170bpJCR BBB A

Credit Rating S&P BB BBBMoody’s Ba2 Baa3

525.4

626.6678.6

787.6

930.7

1,013.7

0

200

400

600

800

1,000

FY06 FY07 FY08 FY09 FY10 FY11

35

EBITDA

25%

37%

23%

25%

29%

31%32%

21%

20%

25%

30%

35%

40%


SOFTBANKKDDINTT DOCOMO

EBITDA Margin<bn JPY>

EBITDA and EBITDA Margin

Note: 1. EBITDA = operating income (loss) + depreciation and amortization (including amortization of goodwill)

2. EBITDA Margin = EBITDA / net sales

Achieved JPY 1t EBITDA and margin of 30%.

*Created by SOFTBANK CORP. based on respective companies’publicly available information.

(NTT DOCOMO for FY11: estimation disclosed by NTT DOCOMO)

36*Free Cash Flow (FCF) = cash flows from operating activities + cash flows from investing activities

FY2011JPY 364.5bn

Aggregate JPY 1.3t

JPY 1t target(3 year aggregate )

Exceededtarget

FY2010JPY 561.3bn

FY2009JPY 390.8bn

Free Cash Flow

37

547.2

1,209.6

1,501.0

1,939.5

0

500

1,000

1,500

2,000

Mar 09 Mar 10 Mar 11 Mar 12

Exceeded target

Half(by the end of FY2011)

Net Interest-bearing DebtReduced JPY 1.4t in three years

Note: 1. Net interest-bearing debt = interest-bearing debt - cash position2. Interest-bearing debt: short-term borrowings + commercial paper + bonds due for redemption within 1 year + bonds + long-term borrowings

Lease obligations are not included. From March 2010 to March 2011, excludes the corporate bonds (WBS Class B2 Funding Notes, issued by J-WBS Funding K.K.) with a face value of JPY 27.0bn acquired by SOFTBANK CORP. that were issued under the whole business securitization scheme associated with the acquisition of Vodafone K.K.

3. Cash position = cash and cash deposits + marketable securities included in current assets (excludes Yahoo! Inc. shares held by a subsidiary of SOFTBANK CORP. in the United States of America)

<bn JPY>

502.9388.5660.8 604.8

963.2619.4

490.4428.4

84.584.5

745.5

959.71,184.8

221.9

49.9219.8

2,400.3

2,195.42,075.8

1,568.1

0

500

1,000

1,500

2,000

2,500


Securitization of installment sales receivablesobligationsSBM loan

Vodafone subordinate loan

Borrowings from other financial institutions, etc.

Bonds & CP

38

SOFTBANK (syndicated loan related to WBS refinancing) 550.0

SOFTBANK (other bank loans) 317.9

SOFTBANK (stock lending) 93.0

Other bank loans 23.0

Total 963.2

Interest-bearing Debt

<bn JPY>Breakdown of borrowings from other financial institutions, etc. <bn JPY>

Note: 1. Interest-bearing debt= short-term borrowings + commercial paper + bonds due for redemption within 1 year + bonds + long-term borrowings. Lease obligations are not included.

2. SBM loan: from March 2010 to March 2011, excludes the corporate bonds (WBS Class B2 Funding Notes, issued by J-WBS Funding K.K.), which were substantially a part of SBM loan, with a face value of JPY 27.0bn acquired by SOFTBANK CORP that were issued under the whole business securitization scheme associated with the acquisition of Vodafone K.K.

Reduced JPY 830.0bn in three years.Completed refinancing of acquisition finance of Vodafone K.K.Consolidate procurement at holding company level.

104.0

62.2

111.1112.3

0

20

40

60

80

100

120

FY08 FY09 FY10 FY11

Interest Expense Interest Coverage Ratio

39

8.9

16.3

7.16.0

0

2

4

6

8

10

12

14

16

18

FY08 FY09 FY10 FY11

<times>

Interest Expense

<bn JPY>

Significant reduction in interest expense along with refinance of acquisition finance of Vodafone K.K.

Note: 1. Interest coverage ratio = EBITDA / interest expenses2. EBITDA = operating income (loss) + depreciation and amortization (including amortization of goodwill)

36.9

139.2

188.6

257.2

763.5677.4

555.1423.8

460.8

694.3

866.1

1,020.8

0

200

400

600

800

1,000


40

Credit line facility size 201.0 161.0 187.0 180.0Unused portion 21.0 101.0 107.0 180.0

Exclude Yahoo! Japan consolidation

Yahoo! Japan consolidation

Cash Position

Note:1.Cash position = cash and cash deposits + marketable securities included in current assets(excludes Yahoo! Inc. shares held by a subsidiary of SOFTBANK CORP. in the United States of America)

2. Unused portion of credit line facility = credit line facility size - credit line borrowings

(April 2012)Payment related to acquisition of preferred stock, etc. issued to Vodafone Group: JPY 200.0bn

<bn JPY>

Full-scale introduction of group-wide cash management

due to full repayment of whole business securitization (WBS)

Starts integrated operation of group cash by holding company

41

※

SBM lease funding costs down by half

Lease Obligations SBM Lease funding costs

Mar 09

Lease Obligations

500.3

141.3

331.0334.2321.5

62.7

105.6 78.5

462.9409.5

563.1

439.8

0

200

400

600

800

1,000


Finance leases (accounted for as operating lease transactions)

Finance leases (lease obligations)

<bn JPY>

*Finance lease transactions in which the ownership of leased assets was not transferred to lessees and contracted before April 1, 2008.SBM: SOFTBANK MOBILE

*

Mar 10 Mar 11 Mar 12

<%>

42

4.1

1.1

3.32.9

1.30.5

1.9

0.0

1.0

2.0

3.0

4.0

5.0


including finance lease

Net interest-bearing debt/EBITDA multiple to mark 0.5

Net Interest-bearing Debt/EBITDA Multiple

<times>

Note: 1. Net interest-bearing debt = interest-bearing debt - cash position2. Interest-bearing debt= short-term borrowings + commercial paper + bonds due for redemption within 1 year + bonds + long-term borrowings

Lease obligations are not included. From March 2010 to September 2011, this excludes the corporate bonds (WBS Class B2 Funding Notes, issued by J-WBS Funding K.K.) witha face value of JPY 27.0bn acquired by SOFTBANK CORP.


4. Interest-bearing debt and net interest-bearing debt of FY2006 are calculated with retroactive adjustments by adding the cash receipts as collateral relating to marketable security lending transactions.

5. EBITDA = operating income (loss) + depreciation and amortization (including amortization of goodwill)

43

7.6

1.23.2

0.62.0

5.25.3

0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

8.0

9.0



Net debt equity ratio to mark 0.6.

Net Debt/Equity Ratio

<times>

Note: 1. Net D/E ratio = interest-bearing debt/shareholders’ equity2. Net interest-bearing debt = interest-bearing debt - cash position3. Interest-bearing debt= short-term borrowings + commercial paper + bonds due for redemption within 1 year + bonds + long-term borrowings. Lease obligations are not included.

From March 2010 to September 2011, this excludes the corporate bonds (WBS Class B2 Funding Notes, issued by J-WBS Funding K.K.) with a face value of JPY 27.0bn acquired by SOFTBANK CORP.


5. Interest-bearing debt and net interest-bearing debt of March 2007 are calculated with retroactive adjustments by adding the cash receipts as collateral relating to marketable security lending transactions.

2,158.12,036.8

1,939.5

1,501.0

1,209.6

547.2

0

500

1,000

1,500

2,000

2,500

44

Net Interest-bearing Debt

29%

50% 49%

40%

32%

14%

55%

0%

10%

20%

30%

40%

50%

60%

70%


Debt Ratio (net interest-bearing debt basis)

Net interest-bearing debt to total assets ratio decreased sharply.

Debt ratio (net interest-bearing debt basis)

<bn JPY>

Mar 07 Mar 08 Mar 09 Mar 10 Mar 11 Mar 12 Mar 07 Mar 08 Mar 09 Mar 10 Mar 11 Mar 12

Note: 1. Net interest-bearing debt = interest-bearing debt - cash position2. Interest-bearing debt= short-term borrowings + commercial paper + bonds due for redemption within 1 year + bonds + long-term borrowings

Lease obligations are not included. From March 2010 to September 2011, this excludes the corporate bonds (WBS Class B2 Funding Notes, issued by J-WBS Funding K.K.) witha face value of JPY 27.0bn acquired by SOFTBANK CORP.


4. Debt Ratio (net interest-bearing debt basis) = net interest-bearing debt / (total assets – cash and cash deposits)

28.8

108.6

43.1

96.7

189.7

313.7

0

100

200

300


45

Net Income

6.7%

11.2%

1.1%

9.8%

6.3%

3.5%1.6%

3.9%

0%

2%

4%

6%

8%

10%

12%

14%


SOFTBANKKDDINTT DOCOMO

Net Income / Sales

Net Income

<bn JPY>

*Created by SOFTBANK CORP. based on respective companies’publicly available information.

(NTT DOCOMO for FY11: estimation disclosed by NTT DOCOMO)

Continue to generate high level of net income.

242.7282.9

383.7 374.0

470.5

619.2

936.6

0

200

400

600

800

1,000

Mar 06 Mar 07 Mar 08 Mar 09 Mar 10 Mar 11 Mar 12

46

Shareholders' Equity Equity Ratio

Equity Ratio

<bn JPY>

13.4%

8.4% 8.5%

10.5%

13.3%

19.1%

6.6%

0%

5%

10%

15%

20%

25%

Mar 06 Mar 07 Mar 08 Mar 09 Mar 10 Mar 11 Mar 12

Accelerated improvement of equity ratio.

0

100

200

300

400

500

600

0

500

1,000

1,500

2,000

2,500

CDS Bond Spread

FY08

Softbank CDS (5yrs)

(bp) (bp)

Apr Oct Apr Oct Apr AprOct

FY11FY09 FY10

Credit Spread

AprOct

FY12

Announced net interest-bearing debtreduction target

FY08 FY11FY09 FY10 FY12

Announced net interest-bearing debtreduction target

26th Unsecured Straight Corporate Bond(2.2yrs remaining)



35th Unsecured Straight Corporate Bond(5.8years remaining)

Apr Oct Apr Oct Apr AprOct AprOct

Source: CDS; Bloomberg dataBond spread data; calculated by SOFTBANK CORP. based on Japan Securities Dealers Association data.

CDS: Credit Default Swap

Significantly improved

47

JCR (A)A/A２

A－/A3

BBB+/Baa1

BBB/Baa2

BBB－/Baa3

BB+/Ba1

BB/Ba2

BB－/Ba3

B+/B1

S&P (BBB)

Moody’s (Baa3)

Highest rating ever

2006 2007 2008 2009 2010 2011 2012

A+/A1

Announcement of target to reduce

net interest-bearing debt

Acquisition of Vodafone K.K.

Completed refinance of acquisition finance of

Vodafone K.K.

Trend of Credit Rating of SOFTBANK

Upgrades since entering Mobile Communications business

JCR 3 notches BBB >> A

S&P 4 notches BB- >> BBB

Moody’s 3 notches Ba3 >> Baa3

(CY)

Investment grade

48

1.Complete refinance of acquisition finance of Vodafone K.K.2.Accelerated reduction of net interest-bearing debt3.Highest credit rating ever

Achieved improvement of financial status

49

Strengthen Financials

Shareholder Return

Shift from “strengthening financials” to “enhancing enterprise value”

StrategicGrowth

50

2.5 2.5 2.55.0 5.0

0

5

10

15

20

25

30

35

40

45


Dividend per Share

Enhance Shareholder Return

2.6 2.7 2.75.4 5.4

0

5

10

15

20

25

30

35

40

45


Total Amount of Dividends<JPY>

Significant dividend increase

40 43.9

<bn JPY>

(Plan) (Plan) 51

3.7%

1.6%

3.0%

4.1%

0%

1%

2%

3%

4%

5%


SOFTBANKKDDINTT DOCOMONTT

39%

14%

28%

49%

0%

10%

20%

30%

40%

50%


SOFTBANKKDDINTT DOCOMONTT

Significant improvement in payout ratio, dividend yield


Payout Ratio Dividend Yield

(Plan) (Plan)*Created by SOFTBANK CORP. based on respective companies’ publicly available information.(NTT DOCOMO for FY11: estimation disclosed by NTT DOCOMO)

52

FY2010 FY2011(Plan)

Dividend per share JPY 5 JPY 40Total amount of

dividends JPY 5.4bn JPY 43.9bn

Payout ratio 2.9% 14%

Dividend yield 0.15% 1.6%

<FY2011>

Stock buyback JPY 22.5bn<FY2012>

Significant increase in dividend


53

Content Amount Date

BorrowingsRefinance of acquisition finance of Vodafone K.K. (July: structure of syndicated loan, Oct: full repayment of SBM loan) 550.0 July 2011

Renewal of credit line facility 180.0 Sep 2011

Bonds

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

100.0 June 2011

37th Unsecured Straight Corporate Bond 30.0 June 201138th Unsecured Straight Corporate Bond 50.0 Jan 2012

Others Issuance of preferred securities by a consolidated subsidiary 200.0 Sep 2011

<Procurements>

Company Name Invested Amount

InMobi Pte. Ltd. USD 100mil (8.0*)

Gilt Groupe Inc. USD 62.5mil (5.0*)

<Investments in Businesses>

Content Amount Date

Repayment of borrowings with shares (Yahoo! Inc.) held by a U.S. subsidiary USD 1,135mil (90.8*) Sep 2011

Acquisition of treasury stock 22.5 Sep - Oct 2011

Acquisition of Fukuoka Yahoo! JAPAN Dome 87.6 Mar 2012

<Others>

* Calculated based upon exchange rate of 1USD=80JPY.

Main Financing Activities of FY2011

<bn JPY>

54

Main Procurements in the Market During FY2011

36th UnsecuredStraight Corporate Bond

37th Unsecured Straight Corporate Bond

38th UnsecuredStraight Corporate Bond

Target Investors Mainly individual investors Institutional investors Institutional investors

Amount JPY 100.0bn JPY 30.0bn JPY 50.0bnInterest

Rate 1.00% 0.65% 0.42%

Term 5 years 3 years 2 years

Total issued amount JPY 180.0bnProcured at lowest interest rate ever in SOTBANK history

Issuer SFJ Capital Limited

Amount JPY 200.0bn

Dividend rate 2.04% (Step-up clause will be applied after May 2015)

Recorded on consolidated balance sheets as minority interestsimprove financial stability

<Bonds>

<Issuance of Preferred Securities>

Scheduled to be redeemed in May 2015 when become redeemable prior to maturity

Nikkei Veritas “Deal of the Year”retail bond 3 years consecutiveCapital Eye「 BEST ISSUER」2 years consecutive

55

Acquisition of Fukuoka Yahoo! JAPAN Dome

1. Significant reduction of cost paid to outside SB group

Acquired the Fukuoka Yahoo! JAPAN Dome at JPY 87.6bn from GIC group.(continue to lease until July 2015)

Mar 2012

2. Enhance the baseball business by making an attractive stadium

<Before acquisition>Expected cost

approx. JPY 150.0bn (Total of 23 years of contract period)

Expected cost approx. JPY 120.0bn-α

(α=market value of land & buildings)

Improvement of ordinary income by JPY 3.0bn per year.

CF

PL

* including assumed financing costs for 23 years.

*

<After acquisition>

A subsidiary of SOFTBANK will acquire and pay JPY 74.5bnJuly 2015

56

-Completed WBS refinance-Achieved the target of reducingnet interest-bearing debt by half

-Highest rating ever;JCR: A- >> AS&P: BB+ >> BBBMoody’s: Ba2 >> Baa3

* Based on the amount of the assets sold

-CAPEX: JPY 516.3bn-Investments in Business:InMobi, Gilt Groupe, etc.

-FCF: JPY 364.5bn-IPOs: Renren, Zynga

-Issuance of preferred securities:JPY 200.0bn

-Issuance of corporate bonds:JPY 180.0bn

-Lease procurementsapprox. JPY 330.0bn*

1. Gain foothold for further growth- Prioritized distribution of FCF to CAPEX- Support strategic business investments actively- Focus on value improvement of companies invested in

2. New phase of credit improvement- Full repayment of non recourse loan after WBS refinance- Solid reduction of debt towards zero net interest-bearing debt- Improve credit rating by strengthening financial base and

WBS refinance

3. Thorough focus on investors and market- Continue to pursue various & flexible procurement methods - Continue to enhance relationships with domestic and international financial institutions, access main markets

Balance between growth strategy and strengthening financial Status

Achievements to FY2011 Financial Strategies

57

FY2012 Financial Strategies

1. Pursue optimum leverage- Define the leverage level allowing pursuit of both growth and stability- Pursue growth strategy for timely response to investment opportunities in growth areas

- Optimize funding costs

Shift focus from “strengthening financials” to “enhancing enterprise value”

2. Increased flexibility to dynamic market change- Expand more diversification of funding- Focus on striking a right balance between direct and indirect financing- Enhance the function of holding company through the Group-wide CMS- Ensure analysis and management of market risk of our assets

3. Investor satisfaction focus- Pursue greater shareholder return and establish shareholder return policy- Aim to share growth scenarios and financial strategy with investors

through further communication- Broaden investor base through participation in more markets

58

Appendix

59

* Early redemption is possible on SOFTBANK's request for Convertible bond due 2013 in case certain conditions are met.

(Reference) Corporate Bond Details< mil JPY >

Company name Bond Issue date Maturity date Interest rate(%/year) Collateral Mar. 11

balanceMar. 12balance Change

27th series Unsecured Straight Bond(Fukuoka SoftBank HAWKS bond)

2009/6/11 2011/6/10 5.10 None 60,000 － -60,000

25th series Unsecured Straight Bond 2007/6/19 2011/6/17 3.39 None 53,500 － -53,500

28th series Unsecured Straight Bond 2009/7/24 2012/7/24 4.72 None 30,000 30,000 －


2009/9/18 2012/9/18 4.52 None 65,000 65,000 －

Convertible Bond due 2013 * 2003/12/30 2013/3/31 1.50 None 49,998 49,988 -1031th series Unsecured Straight Bond 2010/6/2 2013/5/31 1.17 None 25,000 25,000 －


2010/9/17 2013/9/17 1.24 None 130,000 130,000 －

38th series Unsecured Straight Bond 2012/1/27 2014/1/27 0.42 None － 50,000 50,000Convertible Bond due 2014 2003/12/30 2014/3/31 1.75 None 49,992 － -49,992

37th series Unsecured Straight Bond 2011/6/10 2014/6/10 0.65 None － 30,000 30,000






2011/6/17 2016/6/17 1.00 None － 100,000 100,000


SOFTBANK TELECOM 2nd series Unsecured Straight Bond 2004/12/7 2011/12/7 2.88 None 15,000 ― -15,000Phoenix JT Subordinated Notes Due 2016 2004/12/24 2016/12/15 5.95 None 32,400 ― -32,400Other corporate bonds - - - - - 100 ― -100Total - - - - - 635,890 604,888 -31,002

SOFTBANK CORP.

60

25.0

130.0

95.0

50.049.9

200.0

Q1 Q2 Q4Q3

FY12

Q1 Q2 Q4Q3

FY13

(Reference) Bond Redemption Schedule

Payment related to acquisition of preferred stock, etc. issued to

Vodafone Group

<bn JPY>

SB straight bond

SB convertible bond

Others

61

1,638.8

739.7

1,883.1

312.3

436.9

828.4

2,195.42,075.8

1,568.1

0

500

1,000

1,500

2,000

2,500


Fixed Variable

1,511.31,703.1

1,019.9

492.3564.4

548.1

2,195.42,075.8

1,568.1

0

500

1,000

1,500

2,000

2,500


Long-term Short-term

53％

47％

21％

79％

14％

86％

22％

78％

27％

73％

35％

65％

Note: interest-bearing debt: short-term borrowings + commercial paper + bonds due for redemption within 1 year + bonds + long-term borrowingsLease obligations are not included.

For December 2010, this excludes the corporate bonds (WBS Class B2 Funding Notes, issued by J-WBS Funding K.K.) with a face value of JPY 27.0bn acquired by SOFTBANK CORP. that were issued under the whole business securitization scheme associated with the acquisition of Vodafone K.K.

Interest-bearing Debt Long/Short and Fixed/Variable Ratio Trend

Stable short and variable ratio.

Variable ratio increased due to refinance of acquisition finance of Vodafone K.K..

Interest-bearing DebtLong/Short Ratio

Interest-bearing DebtFixed/Variable Ratio

<bn JPY> <bn JPY>

62

65

Kazuhiko FujiharaSenior Vice President, Director & CFO

SOFTBANK MOBILE Corp.

Senior Vice President, Director & CFOSOFTBANK BB Corp.

Senior Vice President, DirectorSOFTBANK TELECOM Corp.

Operation

402.4

620.4

429.2

684.1

61.043.1 50.2

34.3

Operating income EBITDA

66

85.6

38.0

105.0

57.9


Broadband Infrastructure Fixed-line Telecommunications

<bn JPY>

FY10

3 Telecommunications Businesses led consolidated operating income to reach record high (7 consecutive periods).


Overview of Telecommunications Businesses

FY11

Note 1. EBITDA = operating income (loss) + depreciation and amortization

(including amortization of goodwill) 2. Broadband Infrastructure: Broadband Infrastructure segment, Mobile Communications: Mobile Communications segment, SB: SOFTBANK3. From FY2011/ Q3, depreciation & amortization includes loss on disposal of fixed assets included in operating expenses.

Depreciation and amortization for the previous year has been reclassified and restated accordingly.


-8.8

+26.8Broadband Infrastructure + Fixed-line Telecommunications

Operating income YoY+11.1

Operating income YoY SOFTBANK consolidated: +46.1Mobile Communications: +26.8% to SB consolidated: 58%

(Reference)

FY10 FY11 FY10 FY11 FY10 FY11 FY10 FY11 FY10 FY11

+19.9

67

Broadband Infrastructure Business

Operation

<BB>

68

11.8 15.9 17.8 16.2 14.1

12.617.5 15.6

13.2

12.5

10.3

16.3

17.217.5

15.215.918.5

15.4

20.1

14.116.818.2

15.713.8 50.2

61.055.6

70.3 70.965.2

0

20

40

60

80

100


5.4 8.6 10.4 13.7 11.6 10.26.1

10.311.7

13.211.0

9.4

6.012.114.3

11.3

7.7

10.88.6

9.4

7.3

9.210.69.6 34.3

47.243.1

48.3

39.7

26.8

0

40

80


Operating Income EBITDA

Profit decreased YoY. Efforts continued to increase lines.<bn JPY>

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Operating Income, EBITDA

Note: 1 Segment financial results: new standards are applied from FY2010. FY2009 results are shown based on the new standard for comparison purposes only. 2 EBITDA = operating income (loss) + depreciation and amortization (including amortization of goodwill)

<BB>

69

5,160

4,810

4,300

3,770

3,150

2,600

2,740

930240

1,610

1,440

4,2104,080 4,1704,010

0

1,000

2,000

3,000

4,000

5,000

6,000Yahoo! BB hikari with FLET'S Cumulative contractsADSL Installed lines

3,5103,830

4,0204,080

1,6801,350 1,620

0

1,000

2,000

3,000

4,000

5,000

Q1 2 3 4 Q1 2 3 4 Q1 2 3 4 Q1 2 3 4

ADSL (installed line base)Yahoo! BB hikari with FLET'S

Note: 1. ADSL Installed lines: lines for which connection construction for ADSL line at central office of NTT East or NTT West is complete (including suspended plan).Yahoo! BB hikari with FLET’S cumulative contracts: users for which connection construction for FLET’S HIKARI line at central office of NTT East or NTT West is complete.

2. Yahoo! BB hikari with FLET’S: a broadband connection service that combines the Internet connection service Yahoo! BB and the FLET’S HIKARI fiber-optic connection provided by NTT East and NTT West. FLET’S and FLET’S HIKARI are registered trademarks of NTT East and NTT West.

3. ARPU (revenue per installed line): average revenue per user (rounded to the nearest JPY 10)

<k lines> Number of Lines<JPY>

Number of lines: decreased in ADSL, increased in Yahoo! BB hikari with FLET’S. Net increase in total.

Yahoo! BB ADSL Lines and ARPU

FY08 FY09 FY10 FY11FY06 FY07 FY08 FY09 FY10 FY11

ARPU

FY10Q4

FY11Q4 Increment

ADSL 3,150 2,600 -550Yahoo! BB hikari with FLET’S 930 1,610 +680

TOTAL 4,080 4,210 +130

<BB>

5.73.84.6

12.5

47.6

9.314.5

21.222.116.8

0

20

40

60

80

100

FY05 FY06 FY07 FY08 FY09 FY10 FY11

70

(Reference) Annual plan

5.0 5.1 12.53.24.02.01.51.5 3.3 5.7 3.8 4.6

4.0 4.0 3.8 4.0 3.8 3.54.8

3.44.2 4.2

3.53.8

0

5

10

15

20

25

09/Q1 Q2 Q3 Q4 10/Q1 Q2 Q3 Q4 11/Q1 Q2 Q3 Q4

CAPEX


<bn JPY>CAPEX

(yearly trend)

CAPEX and Depreciation & Amortization (quarterly trend)

CAPEX (acceptance basis)

Q1

35.0

[FY]

26.7

Q2

Note: 1. Segment financial results: new standards are applied from FY2010. FY2009 results are shown based on the new standard for comparison purposes only.2. From FY2011/ Q3, depreciation & amortization includes loss on disposal of fixed assets included in operating expenses.

Depreciation and amortization for the previous quarters has been reclassified and restated accordingly.

Q3

Q4

Annual result: JPY 26.7bn (JPY 9.9bn YoY increase, JPY 8.3bn below plan)

71


Operation

<Fixed>

3.56.6

12.9

4.74.3

6.9

14.3

5.76.5

10.2

15.5

8.6

14.1

15.1

-0.11.2 0.70.4-0.9

-2.6

1.3

7.6

-0.6

1.6

57.9

38.0

23.018.9

3.3-2.9

-5

0

5

10

15

20

25

30

35

40

45

50

55

60


12.6 11.1 14.6 17.923.9

10.2 11.315.3

18.5

25.8

27.3

19.6

27.4

27.8

12.2

16.1

17.1

8.9 12.4

17.3

21.7

13.010.7

18.7

67.0

47.942.5

64.3

85.6

105.0

0

20

40

60

80

100


72

Operating Income/Loss EBITDA

Sustained revenue & profit increase, through enhancement of corporate sales, efficient management, group synergies. <bn JPY>

*1. FY06/Q1: includes one-off event (reversal of JPY 2.5bn for retirement benefits)

2. FY2008: includes operating income of JPY 2.0bn of SOFTBANK IDC Solutions Corp. (merged with Yahoo Japan at the end of FY08)3. EBITDA = operating income (loss) + depreciation and amortization (including amortization of goodwill)4. Segment financial results: new standards are applied from FY2010. FY2009 results are shown based on the new standard for comparison purposes only.

Q1

Q2

Q3

Q4

(*1)

Q1Q2Q3Q4

Operating Income, EBITDA

Q1Q2Q3Q4

(*2)

<Fixed>

0

2,000

4,000

6,000

8,000

10,000

12,000

Q1 2 3 4 Q1 2 3 4 Q1 2 3 4 Q1 2 3 4 Q1 2 3 4 Q1 2 3 4

Large Corp. Total1,610

1,400

1,220

1,670 1,670 1,680

0

200

400

600

800

1,000

1,200

1,400

1,600

1,800

Q1 2 3 4 Q1 2 3 4 Q1 2 3 4 Q1 2 3 4 Q1 2 3 4 Q1 2 3 4

ConsumerSME (excl. SBTP)SME (SBTP)Large corp

73

Number of lines and ARPU in solid trend on enhancement of corporate sales

<JPY>Number of Lines ARPU<k lines>

Note: 1. ARPU: Average Revenue Per line (rounded to the nearest JPY 10) 2. SBTP: SOFTBANK TELECOM PARTNERS

Number of Lines and ARPU for OTOKU Line

Corporate lines:1,450KCorporate lines ratio: 86.2%

ＦＹ０６ＦＹ０7 ＦＹ０8 ＦＹ０9 ＦＹ10 ＦＹ11ＦＹ０６ＦＹ０7 ＦＹ０8 ＦＹ０9 ＦＹ10 ＦＹ11

<Fixed>

6.3

82.6

37.6

21.8

8.2

10.6

14.629.536.2

17.9

0

20

40

60

80

100

FY05 FY06 FY07 FY08 FY09 FY10 FY11

74

14.6

10.68.215.6

9.05.16.8

3.43.96.6

9.58.1

5.16.3

6.33.7

9.4 9.4 9.4 9.4 9.1 9.0 9.1 9.4 9.6 9.1

14.114.114.114.214.013.713.612.9

12.412.612.1

13.8

11.611.8

10.6

10.99.8 9.6

9.9

11.4

9.3

11.6

0

5

10

15

20

25

08/Q1Q2 Q3 Q409/Q1Q2 Q3 Q410/Q1Q2 Q3 Q411/Q1Q2 Q3 Q4

CAPEX


Depreciation & amortization + lease (OPEX)

<bn JPY>

CAPEX (yearly trend)


Annual result: JPY 39.8bn (JPY 3.6bn YoY increase, JPY 1.8bn above plan)


Q1


38.0

[FY]

39.8

Q2

Note: 1. Segment financial results: new standards are applied from FY2010. FY2009 results are shown based on the new standard for comparison purposes only.2. From FY2011/ Q3, depreciation & amortization includes loss on disposal of fixed assets included in operating expenses.

Depreciation and amortization for the previous quarters has been reclassified and restated accordingly.

Q3

Q4

76


Operation

<Mobile>

1,271.6 1,433.4

738.5699.4

2,172.0

1,971.1

0

200

400

600

800

1,000

1,200

1,400

1,600

1,800

2,000

2,200

2,400

FY2010 FY201177

270.5254.8347.5307.5

364.3

262.2 283.5317.7

368.3

331.1290.5

261.5

353.3

315.2

252.4277.2

1,433.4

1,271.6

1,121.91,031.1

0

200

400

600

800

1,000

1,200

1,400

FY08 FY09 FY10 FY11

Net sales increased by 10.2%(YoY increase of 12.7% in telecom service revenue).

SBM Consolidated Net Sales SBM Consolidated Net Sales(Quarterly Comparison)

<bn JPY>

Telecom service revenueSales of mobile handsets and accessories

+161.8

Q1

Q2

Q3

Q4

Telecom service revenue

+39.0

+200.8

SBM Consolidated Net Sales


<bn JPY>

(+12.7%)

(+5.6%)

(+10.2%)

YoYYoY

+90.7

(+6.2%)

(+8.1%)

(+12.1%)

(+13.7%)

(+14.0%)(+11.1%)

(+13.7%)

+149.7

(+9.8%)

(+13.3%)

(+8.8%)

(+13.0%)

(+14.6%)

(+11.2%)

(+12.1%)

+38.0

+161.8

(+12.7%)

+46.5

+40.0

+37.2

+38.0

+40.5

+34.2

+36.9

+24.7

+29.0

+21.2

+15.6

<Mobile>

27.2 43.5 44.2 60.2102.6 116.4

29.350.6 43.8

71.4

104.5

133.5

96.3

56.9

53.7 46.7

83.3

107.2

82.787.9

26.542.2

36.4

45.7

402.4429.2

260.8

155.7174.5 171.3

0

100

200

300

400


78

Operating Income(Mobile Communications Segment)

Q1

Q2

Q3

Q4

2 months(May-Jun)

<bn JPY>

Operating Income/ EBITDA (SB Consolidated)

(+6.7%)

YoY+26.8

EBITDA(Mobile Communications Segment)

55.8 92.4 99.5 117.1 153.2 175.5

104.0 101.1132.2

157.0195.1

158.5

73.6

161.3

142.6

103.0108.3

104.0

154.9

100.0

112.2

148.8

80.6

87.9

620.4684.1

504.2

321.4

385.4 403.8

0

100

200

300

400

500

600

700

800


YoY +63.6

(+10.3%)

2 months(May-Jun)

*Since SOFTBANK CORP. established the Mobile Communications segment in FY2006 Segment financial results: new standards are applied from FY2010. FY2009 results are shown based on the new standard for comparison purposes only. Note: EBITDA = operating income (loss) + depreciation and amortization (including amortization of goodwill)SB: SOFTBANK

<bn JPY>

Revenue and profit new record high*; operating income increased by 6.7% YoY.

Q1

Q2

Q3

Q4

<Mobile>

0

28.95

27.84

25.41

21.8820.63

18.59

15.91

0

5

10

15

20

25

30

6 9 12 3 6 9 12 3 6 9 12 3 6 9 12 3 6 9 12 3 6 9 12 3

2G 3G1,114

937

760

67

901

697

209

973

522

367

526532

412

633

361323

350

189

926

1,009

730

561

612

300

200

400

600

800

1,000

1,200

Q1 2 3 4 Q1 2 3 4 Q1 2 3 4 Q1 2 3 4 Q1 2 3 4 Q1 2 3 4

79

Number of Subscribers (quarterly net additions/cumulative)

Net Additions Cumulative Subscribers

Net additions in Q4 marked 11.1k (record high). Cumulative subs +3.54mil YoY (record high).

<k subs> <mil subs>

Note: the number of net subscriber additions and the number of cumulative subscribers include the number of prepaid mobile phones and communication module service subscribers.

FY06 FY07 FY08 FY09 FY10 FY11 FY06 FY07 FY08 FY09 FY10 FY11

(+3.54)

YoY comparison in ( )

<Mobile>

-150-130-110

-90-70-50-30-101030507090

AprMay JunJul AugSepOctNovDecJanFebMarAprMay JunJul AugSepOctNovDecJanFebMar

603

227

284

498

270

241

377

312

248

325324

277

239

299

192

245

239

276

216

251

230

333

289280

0

100

200

300

400

500

600

700

Apr MayJune July Aug Sep Oct Nov Dec Jan Feb Mar Apr May June July Aug Sep Oct Nov Dec Jan Feb Mar

80

<k subs>

Yearly net additions 3.54mil, MNP* 533k (MNP marked the all-time No.2)

Number of Monthly Net Additions

MNP Net Additions*

NTT DOCOMO

KDDI

<k subs>

FY10 FY11 FY10 FY11

FY103,532k

FY10768k

FY11 533k

(-234k)

Note 1.The number of net subscriber additions includes the number of prepaid mobile phones and communication module service subscribers. 2. MNP Net Additions: net of port-in/out through Mobile Number Portability. Created by SOFTBANK CORP.

Net Additions

FY113,540k(+8k)

All-time

#2

(k subs) FY06 FY07 FY08 FY09 FY10 FY11

Net Addition 699 2,578 2,047 1,244 3,532 3,540

MNP -186 318 273 257 768 533#1

SOFTBANK

<Mobile>

2.36%

1.93% 1.98%

1.78%

1.38%

1.33%

0.0%

1.0%

2.0%

3.0%

Q1 2 3 4 Q1 2 3 4 Q1 2 3 4 Q1 2 3 4 Q1 2 3 4

81

1.20%

1.02%

2.01%

1.13%1.19% 1.11%

0.90%

1.10%

0.98%

1.28%

0.85%

1.04%

0.0%

1.0%

2.0%

Q1 2 3 4 Q1 2 3 4 Q1 2 3 4 Q1 2 3 4 Q1 2 3 4

Total 3G Postpaid

YoY: Churn rate increased (influenced by prepaid mobile phones, Photovision, mobile data communications devices, etc.)

Upgrade rate stabilized after first cycle of upgrades to iPhone 4S.

Churn Rate & Upgrade Rate

Note 1. For definition and calculation of the churn and upgrade rates, see page 93.2. Churn rate (3G postpaid): calculated with communication module service subscribers included in the number of subscribers and churn.3. Both churn rate and upgrade rate were inflated by 2G termination till FY09.

Upgrade RateChurn Rate

FY07 FY08 FY09 FY10 FY11FY07 FY08 FY09 FY10 FY11

1.32%

1.05%1.06%0.77%0.95%

3G postpaid (annual)All contracts (annual)

0.94%

1.00% 1.37% 0.98% 1.12%

2.20% 1.71% 1.71% 1.40%

Upgrade rate (annual)

1.59%

<Mobile>

82

Churn Rate Details (FY11/Q4)

Churn rate largely varies according to the history of handset upgrades.

0.64%

1.52%

1.10%

0.0%

0.5%

1.0%

1.5%

2.0%

Churn Rate of 3G Postpaid (FY11/Q4) <by history of handset upgrades>

3G postpaid Never upgraded handsets

(details)

Upgraded handsets

in the past

Note: Churn rate (3G postpaid): calculated with communication module service subscribers included in the number of subscribers and churn.

Churn rate of users who have never upgraded their SBM handsets (many of them are short-term users)

Churn rate of users who have upgraded their SBM handsets at least once in the past (many of them are long-term users)


Figures for the same period of the previous fiscal year is shown in ( )

(0.98%)

(1.48%)

(0.47%)

<Mobile>

83

1,380 1,600 1,8202,140 2,370 2,530

3,830

2,710 2,0201,750

1,570 1,350

2,530

1,700

3,8904,230

5,210

4,310

3,830 3,890 3,940

0

1,000

2,000

3,000

4,000

5,000

6,000

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2 3 4

Voice ARPU

Data ARPU

<JPY>

-340

+10

QoQ

ARPU (Average Revenue Per User)

Note: ARPU: Average Revenue Per User per month (rounded to the nearest

JPY 10). Monthly Discounts (New Super Bonus Special Discount) are deducted from ARPU.For definition and calculation method of ARPU, refer to page 93.

FY08 JPY 4,070

FY07 JPY 4,650

QoQ: - JPY 340, data +JPY 10.

YoY: - JPY 50, data +JPY 160.

FY06 JPY 5,510

FY09JPY 4,070

(-690)

(+220)

(-260)

(+330)

(-180)

(+230)

YoY

Total

-50

-340 -220

Data ARPU

+160

Voice ARPU

<JPY> <JPY>

(-900)

(-480) (+60)

FY10JPY 4,210


(+50)

(+220)

(-1,120)

FY1JPY 4,150

Impact from access charge reduction. (refer to next page)

<Mobile>

-820

2,6102,4002,1401,8201,6001,380

2,580

2,100

2,4202,7003,1003,5204,0002,450

-180-810 -1,090 -950 -880 -800

<230><390><320><100>

3,890

4,2303,9403,8903,830

4,310

5,210

-1,500

-500

500

1,500

2,500

3,500

4,500

5,500

6,500

Q1 2 3 4 Q1 2 3 4 Q1 2 3 4 Q1 2 3 4 Q1 2 3 4 Q1 2 3 4

Data ARPU (before Monthly Discounts) Voice ARPU (before Monthly Discounts)Monthly Discounts < Impact of access charge reduction >ARPU

(+60)

84

ARPU (Average Revenue Per User)

(-280)

(+260)

(+70)

(-400)

(+330)

(+140)

<JPY>

Total(-JPY 50)


(+200)

YoYcomparison

YoY (Monthly Discounts referred to separately) Basic monthly charge plus voice:- JPY 320, data: +JPY 200 impact of Monthly Discounts: +JPY 60.

(Reference) Impact of Monthly Discounts

(+220)

(-280)

(-410)


(-490)

(+220)

(-630)

(-320)

Note: ARPU: Average Revenue Per User per month (rounded to the nearest

JPY 10). ARPU is reduced by Monthly Discounts (New Super Bonus Special Discount). Impact of access charge reduction : indicates impact of reduction relating to revised access charges between carriers (showing 12 month amount collectively)For definition and calculation method of ARPU, refer to

page 93.

<Mobile>

-1,200

-1,000

-800

-600

-400

-200

0

200

400

Q1 2 3 4 Q1 2 3 4 Q1 2 3 4 Q1 2 3 4 Q1 2 3 4 Q1 2 3 4

85

ARPU Increment

<JPY>

NTT DOCOMOKDDI

-JPY 50

Decreased by JPY 50 YoY

ARPU YoY Comparison


SOFTBANK

Note: 1. ARPU: Average Revenue Per User per month (rounded to the nearest

JPY 10). Monthly Discounts (New Super Bonus Special Discount) are deducted from ARPU.For definition and calculation method of ARPU, refer to page 93.

2. Calculated by SOFTBANK CORP. based on respective companies’

publicly available information.

<Mobile>

134.0 137.1 138.1 135.5 139.1 142.1

214.819.5

20.2 20.0

21.621.8 21.6

21.9

114.9 116.8 139.1137.3 141.8 114.7

117.0167.4157.7150.2140.6132.4126.2

188.6176.6 207.2200.6

21.7 21.820.9

22.0 23.8

270.5 283.5 290.5 277.2307.5 317.7

331.1 315.2 347.5364.3 368.3 353.3

0

50

100

150

200

250

300

350

400

Q1 2 3 4 Q1 2 3 4 Q1 2 3 4

Other (not included in ARPU calculation)Data related revenueImpact of access charge reductionVoice related revenueTotal

(-2.9)

86


(+ 39.7)

<bn JPY>

Trend of SBM Telecom Service Revenue

FY09 FY10 FY11

(+1.8)

Total(+38.0)

YoY

(+2.7)(+1.7)(+1.9)

(+ 42.9)(+ 38.4)(+ 35.9)

JPY 38.0bn increase YoY. Data drives increase in telecom service revenue.

Note: Voice related revenue consists of voice call charges and basic monthly charges, etc.. Data related revenue consists of packet communication charges, etc..

(-2.0)

(+ 38.2)

Revenue FY10 FY11 Change

Other 85.9 88.9 3.0

Data 652.0 811.4 159.3

Voice 533.6 533.1 -0.5

Total 1,271.6 1,433.4 161.8

<Mobile>

87

220

2,370

1,380 1,600 1,820 2,140 2,5302,530

1,5703,8302,710 2,020 1,750

1,7001,350

250

190

250280 290

220

1,2201,2801,230

1,640 1,450

220

1,190

<230><390><320><100>5,6305,610 5,790 5,760 5,630 5,470

5,320

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

Q1 2 3 4 Q1 2 3 4 Q1 2 3 4 Q1 2 3 4 Q1 2 3 4 Q1 2 3 4

Data ARPU Voice ARPUBackup Service Package, etc. HS installment paymentImpact of access charge reduction

leap year

<JPY>

ARPUJPY 3,890

Average Cash Income Per Subscription (including HS installment payment)

Note: cash income per subscription = ARPU + handset installment payment + backup service package, etc (rounded to the nearest JPY10) For definition and calculation method of ARPU, refer to page 93.Impact of access charge reduction: indicates impact of reduction relating to revised access charges between carriers (showing 12 month amount collectively )

Cash income per subscription decreasing slightly.


leap year

<Mobile>

52.9 72.137.4 32.4 25.9

84.0

79.2 50.9

38.7 39.1 65.3

98.3

71.2

52.9 47.9

104.9

60.3

70.065.2

143.8

93.6

52.0 116.3

146.6

0

50

100

150

200

250

300

350

400

450


88

25.965.247.939.132.4 65.3 116.3 84.0 98.3 93.6143.8 146.6

59.251.5

49.237.7

53.546.347.844.0 39.6 41.1

48.0 46.2 48.6

61.3

51.548.351.347.755.4

42.3 44.4 45.953.1 48.8

0

50

100

150

Q1 2 3 4 Q1 2 3 4 Q1 2 3 4

CAPEX (Mobile Communications Segment)Depreciation & amortization (Mobile Communications Segment)Reference: depreciation & amortization (SBM consolidated)

<bn JPY>CAPEX (yearly trend)


11 months(May 06-

Mar 07)

2 months(May-Jun/06)


Q1

Q2

Q3

Note: Segment financial results: new standards are applied from FY2010. FY2009 results are shown based on the new standard for comparison purposes only. From FY2011/ Q3, depreciation & amortization includes loss on disposal of fixed assets included in operating expenses.Depreciation and amortization for the previous quarters has been reclassified and restated accordingly. <Reference> Under the former classification, increase in depreciation for FY11 (SBM consolidated) consists of JPY 5.8bn of depreciation and JPY 2.3bn of loss on disposal.



Annual result: JPY 422.7bn (YoY:+JPY71.2bn, JPY18.7bn above plan)

404.0

351.5

Q4

FY09 FY10 FY11

235.3

199.1 184.7

(+11.2)


308.4

422.7

(+8.2)

<Mobile>

New Super Bonus Subscription Ratio

80%

82%

85%

72%78%

84%

57%

63%

74%

65%

58% 56%

0%

20%

40%

60%

80%

100%

Q2 3 4 Q1 2 3 4 Q1 2 3 4 Q1 2 3 4 Q1 2 3 4 Q1 2 3 4

Acquisitions subscription ratio (*1)Cumulative subscription ratio (*2)

89*1 Acquisitions subscription ratio: ratio of New Super Bonus subscribers to postpaid subscribers (new/ upgrade)*2 Cumulative subscription ratio: ratio of New Super Bonus subscribers to total subscribers (excluding subscribers whose Monthly Discounts ended)

(includes Super Bonus)

New Super Bonus Subscription Ratio


Subscription ratio stable around 80%. (cumulative subscription ratio continues slight increase since Q3).

<Mobile>

442.1

256.8 226.6

362.2

417.3

-187.9

-307.5

-239.9 -259.5

5.4

1.049.9

163.6160.5162.8

260.4 265.8

212.4

202.2

221.2

224.2

5.3

4.6

9.8

18.7479.5

506.5

226.6230.6

442.1

256.8

0

100

200

300

400

500

600

Q2 3 4 Q1 2 3 4 Q1 2 3 4 Q1 2 3 4 Q1 2 3 4 Q1 2 3 4

Long-term balance

Balance of installment sales receivables securitization

90

Continued sale of installment sales receivables. Receivables balance is declining. (Decrease significantly smaller YoY.)

Installment Sales Receivables Balance


4th

securitization56.1

12th56.1

8th61.4

<Summary>FY11: JPY 30.1bn decreased (=increase in operating CF)…1FY10: JPY 185.2bn decreased (=increase in operating CF)…2Change: JPY -155.0bn (factor decreasing operating CF YoY)

<bn JPY>


…1-30.1

-185.2 …2

*1 increased due to strong sales*2 decreased due to continuous sale of receivables

（+55.0）*1

(-119.5)*2

(-185.2)...2

Occurred

SoldCollected



<bn JPY>YoY comparison in ( )

(-30.1)...1

<Mobile>

91

35.6 35.5

45.3

50.1

40.237.2 37.5 37.8

35.4 36.2

30.8 29.4

22.3 21.2

29.5 30.0

15.518.2 19.5

28.0 27.4 26.3

38.3

25.7

35.937.4

23.6

23.5

26.7

26.7

26.2

23.6 25.2

12.3

22.523.422.223.0

23.925.8

26.1

31.0

25.9

25.3

28.7

28.6

29.027.0

0

10

20

30

40

50

60

Q1 2 3 4 Q1 2 3 4 Q1 2 3 4 Q1 2 3 4

Average acquisition cost per subscriberGross margin from sales of mobile handsets and accessories per unitAverage upgrade cost per subscriber

<k JPY>Average acquisition cost per subscriber = Average commission paid to sales agents per new subscription.

Average upgrade cost per subscriber = Average commission paid to sales agents per handset upgrade.

Gross Margin from Sales of Mobile Handsets and Accessories per Unit= gross margin from sales of mobile handsets and accessories / handsets sold(Gross Margin from Sales of Mobile Handsets and Accessories per Unit is based on an rough estimate.)

Note: handsets sold: total of new subscriptions and handset upgrades new subscriptions include prepaid mobile phones and communication modules. Upgrades include communication modules.

FY08 FY09 FY10 FY11

Average Acquisition and Upgrade Cost per Subscriber Gross Margin from Sales of Mobile Handsets and Accessories

QoQ: Average acquisition cost per subscriber increased due to change in sales initiatives and product mix.

<Mobile>

92

5.47.1

1.3 2.6 2.1

6.24.6

1.81.9

8.7

1.52.2 3.0

10.1

3.8

2.3 1.5

2.0

0.2

2.5

8.7

30.4

9.1

160

7.3

0

5

10

15

20

25

30

35

FY07 FY08 FY09 FY10 FY11

46.2

32.3

25.9

38.6

22.5

30.8

0

10

20

30

40

50

60

70

Q1 2 3 4 Q1 2 3 4 Q1 2 3 4 Q1 2 3 4 Q1 2 3 4FY07 FY08 FY09 FY10 FY11

<bn JPY>

FY10Q4

FY11Q4 YoY

Handsets sold (mil. units) 2.76 3.30 19.4%

Inventory(bn JPY) 38.6 30.8 -20.2%

*Handsets sold: total of new subscriptions and handset upgrades SBM: SOFTBANK MOBILE

SBM Inventory (on B/S) SBM Allowance for Doubtful Accounts of Installment Receivables and Bad Debt Loss

(on P/L)

Inventory maintains stable trend.

Allowances sustain steady trend.

Improvement in Management Efficiency

Q1

Q2

Q3

Q4

<bn JPY>

<Mobile>Definition and Calculation Method of ARPU, etc., in the Mobile Communications Business

1. Definition and calculation method of ARPUARPU（Average Revenue Per User per month）(rounded to the nearest ¥10)ARPU = (voice related revenue + data related revenue) / number of active subscribers

= voice ARPU + data ARPUVoice ARPU = voice related revenue (such as voice call charges, basic monthly charges, revenues from incoming calls)

/ number of active subscribersData ARPU = data related revenue (such as packet communication charges) / number of active subscribers

Number of active subscribers: total of monthly numbers of active subscribers for the relevant period ((subscribers at the beginning of the month + subscribers at the end of the month)/2). Number of active subscribers is based on SOFTBANK MOBILE Corp.’s cumulative subscribers including prepaid mobile phones, communication modules and devices that do not have voice communication functionalities. Revenues from incoming calls: access charges received from other operators for voice calls from their customers on their network to SoftBank mobile phones as a charge for the services provided in the SOFTBANK MOBILE Corp. service area.

2. Definition and calculation method of churn rateChurn rate in Mobile Communications＝churn / number of active subscribers（rounded off to the nearest 0.01%）Churn＝total number of subscribers that churned during the relevant period

Number of active subscribers: total of monthly numbers of active subscribers for the relevant period ((subscribers at the beginning of the month + subscribers at the end of the month)/2). Number of active subscribers is based on SOFTBANK MOBILE Corp.’s cumulative subscribers including prepaid mobile phones, communication modules and devices that do not have voice communication functionalities.

3. Definition and calculation method of upgrade rateUpgrade rate in Mobile Communications＝number of upgrades / number of active subscribers (rounded off to the nearest 0.01%)Number of upgrades＝total number of upgrades during the relevant period

Number of active subscribers: total of monthly numbers of active subscribers for the relevant period ((subscribers at the beginning of the month + subscribers at the end of the month)/2). Number of active subscribers is based on SOFTBANK MOBILE Corp.’s cumulative subscribers including prepaid mobile phones, communication modules and devices that do not have voice communication functionalities.

93

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* Unauthorized copying of this material and use of the information or the data in this material in whole or in part are not permitted.

Analyst 20120427 001

Business

Transcript of Analyst 20120427 001