Earnings Results for the Six-Month Period Ended September 30, 2015

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Earnings Results for the Six-Month Period Ended September 30, 2015 Index Consolidated Results Summary -1- Results by Segment -2- Domestic Telecommunications - 1 -3- Domestic Telecommunications - 2 -4- Domestic Telecommunications - 3 -5- Sprint - 1 -6- Sprint - 2 -7- Yahoo Japan and Distribution -8- Finance Cost and Other Non-operating Income (Loss) -9- Consolidated B/S Assets -10- Consolidated B/S Liabilities and Equity -11- Sprint US-GAAP Bridge to SoftBank IFRSs -12- Financial Indicators -13- Reference -1 -14- Reference -2 -15- Reference -3 -17- *This data sheet was prepared based on the consolidated results for the six-month period ended September 30, 2015 (IFRSs). <Change of Company Names> On July 1, 2015, SoftBank Corp., the pure holding company, changed its company name to SoftBank Group Corp. Moreover, on April 1, 2015, SoftBank Mobile Corp., the company that operates telecommunications business in Japan absorbed SoftBank BB Corp., SoftBank Telecom Corp., and Ymobile Corporation and was renamed SoftBank Corp. on July 1, 2015. The company names that appear in this data sheet are the names as of the publication date. <Definition on Company Names and Abbreviations Used in this Data Sheet> Company Names / Abbreviation Definition SoftBank Group SoftBank Group Corp. (stand-alone basis) SoftBank SoftBank Corp. *Each of the following abbreviations indicates the respective company, and its subsidiaries if any. Sprint Sprint Corporation Brightstar Brightstar Corp. Supercell Supercell Oy Alibaba Alibaba Group Holding Limited GungHo GungHo Online Entertainment, Inc. <Results Associated with GungHo> In FY2015/Q2 (6 months), due to the conclusion of a tender offer by GungHo for its own shares, in which SoftBank Group tendered, and the extinguishing of a pledge on 100,000,000 of GungHo’s common shares held by Heartis G.K. (a pledge with Son Holdings Inc. as the pledgee), GungHo was no longer qualified as a subsidiary and newly became an equity method associate. Accordingly, GungHo’s net income and loss up until June 1, 2015, when GungHo became an equity method associate, are presented as discontinued operations separately from continuing operations. SoftBank Group’s equity in the net income and loss of GungHo following its transition to an equity method associate are recognized as income and loss on equity method investments under continuing operations. Net income and loss of GungHo for FY2014 are revised retrospectively and presented under discontinued operations. Please refer to page 56 “14. Discontinued operations” under “3. Condensed Interim Consolidated Financial Statements (6) Notes to Condensed Interim Consolidated Financial Statements” in Consolidated Financial Report for the six-month period ended September 30, 2015 (IFRS) for details. Consolidated Results Summary (Unaudited) FY2014 FY2015 (Millions of yen) Q1 Q2 H1 Q3 Q4 Full year Q1 Q2 H1 Q3 Q4 Full year Continuing operations Net sales 1,948,264 2,073,601 4,021,865 2,287,178 2,195,092 8,504,135 2,139,058 2,284,744 4,423,802 EBITDA 566,986 510,155 1,077,141 465,673 498,819 2,041,633 659,056 656,992 1,316,048 EBITDA margin 29.1% 24.6% 26.8% 20.4% 22.7% 24.0% 30.8% 28.8% 29.7% Operating income 319,352 245,594 564,946 176,695 177,079 918,720 343,552 342,214 685,766 Operating margin 16.4% 11.8% 14.0% 7.7% 8.1% 10.8% 16.1% 15.0% 15.5% Finance cost -84,985 -86,261 -171,246 -92,918 -102,336 -366,500 -105,511 -110,157 -215,668 Income (loss) on equity method investments -63,425 44,129 -19,296 31,357 64,553 76,614 80,602 183,984 264,586 Dilution gain from changes in equity interest 1,536 597,739 599,275 531 9 599,815 92 14,539 14,631 Income before income tax 181,159 783,017 964,176 106,710 142,149 1,213,035 398,673 419,943 818,616 Net income from continuing operations 100,331 491,112 591,443 23,510 127,765 742,718 256,985 258,608 515,593 Discontinued operations Net income from discontinued operations 10,977 6,021 16,998 8,773 -4,807 20,964 -6,968 - -6,968 Net income attributable to owners of the parent 77,574 483,136 560,710 18,736 88,915 668,361 213,382 213,301 426,683 Net income attributable to owners of the parent ratio 4.0% 23.3% 13.9% 0.8% 4.1% 7.9% 10.0% 9.3% 9.6% Total assets 21,034,169 21,426,330 Equity attributable to owners of the parent 2,846,306 2,995,148 Equity attributable to owners of the parent ratio 13.5% 14.0% Cash flows from operating activities 104,784 577,564 682,348 117,079 355,747 1,155,174 170,733 5,851 176,584 Cash flows from investing activities -377,737 -359,247 -736,984 -622,224 -308,063 -1,667,271 -688,278 -440,663 -1,128,941 Cash flows from financing activities 219,309 291,167 510,476 440,527 768,920 1,719,923 -369,952 282,732 -87,220 Depreciation and amortization -248,209 -254,260 -502,469 -270,723 -322,053 -1,095,245 -316,198 -338,225 -654,423 Capital expenditure (acceptance basis) 295,739 307,531 603,270 376,554 373,609 1,353,433 243,244 275,813 519,057 *EBITDA = net sales - cost of sales - selling, general and administrative expenses + depreciation and amortization *EBITDA margin = EBITDA / net sales *Equity attributable to owners of the parent ratio = equity attributable to owners of the parent / total assets *The amount of capital expenditure and depreciation and amortization excludes those of discontinued operations. - 1 - Results by Segment (Unaudited) FY2015/Q2 (3 months) Domestic Sprint Yahoo Japan Distribution Other Reconciliations Consolidated (Millions of yen) Telecommunications Net sales 783,397 972,184 138,313 362,985 103,952 -76,087 2,284,744 EBITDA 320,893 249,606 49,889 7,111 38,960 -9,467 656,992 EBITDA margin 41.0% 25.7% 36.1% 2.0% 37.5% - 28.8% Depreciation and amortization -110,628 -207,901 -7,287 -3,385 -8,629 -395 -338,225 Gain from remeasurement relating to business combination - - 59,441 - - - 59,441 Other operating income (loss) - -29,908 - - -6,086 - -35,994 Segment income (operating income) 210,265 11,797 102,043 3,726 24,245 -9,862 342,214 Segment margin (operating margin) 26.8% 1.2% 73.8% 1.0% 23.3% - 15.0% Capital expenditure (acceptance basis) 88,241 165,421 16,921 2,086 3,144 - 275,813 FY2015/Q2 (6 months) Domestic Sprint Yahoo Japan Distribution Other Reconciliations Consolidated (Millions of yen) Telecommunications Net sales 1,503,964 1,946,178 248,768 666,728 205,787 -147,623 4,423,802 EBITDA 642,833 508,778 104,387 9,928 70,960 -20,838 1,316,048 EBITDA margin 42.7% 26.1% 42.0% 1.5% 34.5% - 29.7% Depreciation and amortization -218,149 -398,179 -12,933 -5,791 -18,507 -864 -654,423 Gain from remeasurement relating to business combination - - 59,441 - - - 59,441 Other operating income (loss) - -29,214 - - -6,086 - -35,300 Segment income (operating income) 424,684 81,385 150,895 4,137 46,367 -21,702 685,766 Segment margin (operating margin) 28.2% 4.2% 60.7% 0.6% 22.5% - 15.5% Capital expenditure (acceptance basis) 160,681 325,788 24,117 3,982 4,489 - 519,057 *EBITDA in each segment = (segment income + depreciation and amortization – gain from remeasurement relating to business combination - other operating income (loss)) in each segment *EBITDA margin in each segment = (EBITDA / net sales) in each segment *Segment income = (net sales – cost of sales – selling, general and administrative expenses + gain from remeasurement relating to business combination + other operating income (loss)) in each segment *The amount of capital expenditure and depreciation and amortization excludes those of discontinued operations. - 2 - Domestic Telecommunications - 1 (Unaudited) FY2014 FY2015 (Millions of yen) Q1 Q2 H1 Q3 Q4 Full year Q1 Q2 H1 Q3 Q4 Full year Net sales 671,256 753,094 1,424,350 846,947 742,820 3,014,117 720,567 783,397 1,503,964 EBITDA 309,930 303,128 613,058 281,901 218,437 1,113,396 321,940 320,893 642,833 EBITDA margin 46.2% 40.3% 43.0% 33.3% 29.4% 36.9% 44.7% 41.0% 42.7% Depreciation and amortization -105,164 -106,843 -212,007 -109,863 -130,428 -452,298 -107,521 -110,628 -218,149 Other operating income (loss) - - - -18,751 -2,520 -21,271 - - - Segment income 204,766 196,285 401,051 153,287 85,489 639,827 214,419 210,265 424,684 Segment margin 30.5% 26.1% 28.2% 18.1% 11.5% 21.2% 29.8% 26.8% 28.2% Capital expenditure (acceptance basis) 130,281 133,170 263,451 140,713 177,587 581,751 72,440 88,241 160,681 *EBITDA in each segment = (segment income + depreciation and amortization – gain from remeasurement relating to business combination - other operating income (loss)) in each segment *EBITDA margin in each segment = (EBITDA / net sales) in each segment *Segment income = (net sales – cost of sales – selling, general and administrative expenses + gain from remeasurement relating to business combination + other operating income (loss)) in each segment - 3 - Domestic Telecommunications - 2 (Unaudited) Mobile communications service FY2014 FY2015 Q1 Q2 Q3 Q4 Full year Q1 Q2 Q3 Q4 Full year Main subscribers (Thousands) Cumulative subscribers 30,868 31,018 31,173 31,545 31,565 31,604 Net additions 80 150 155 373 758 20 39 Total ARPU (JPY/month) 4,700 4,710 4,710 4,580 4,670 4,660 4,720 Telecom ARPU 4,220 4,230 4,230 4,080 4,190 4,140 4,190 Service ARPU 480 480 490 500 490 520 540 Monthly Disount (JPY/month) -930 -920 -930 -960 -940 -980 -1,000 Churn rate 1.19% 1.30% 1.38% 1.57% 1.36% 1.24% 1.28% Units sold 1,994 2,864 3,587 3,236 11,681 2,197 2,468 New subscriptions 1,182 1,365 1,387 1,817 5,750 1,168 1,210 Device upgrades 812 1,499 2,201 1,419 5,930 1,029 1,258 Cumulative applications for the Smartphone & Internet Bundle Discount (Thousands) Mobile communications service 639 1,315 Broadband service 326 660 Overall mobile communications (Thousands) Cumulative subscribers 44,564 44,900 44,887 44,886 44,417 44,117 Main subscribers 30,868 31,018 31,173 31,545 31,565 31,604 Communication modules 8,426 8,723 8,787 8,615 8,322 8,156 PHS 5,271 5,160 4,927 4,726 4,530 4,356 *Main subscribers: smartphones, feature phones, tablets, mobile data communications devices, others Smartphones to which the Smartphone Family Discount are applied and mobile data communication devices to which the Data Card 2-Year Special Discount are applied are included under communication modules.
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