Earnings Results for the First Quarter ended June 30, 2007 (Q1/FY2008) August 8, 2007 SOFTBANK CORP. March 12, 2010 Version Due to protection of rights, some of the photos and images included at the time of publication have been modified or revised. “FY2008” and “FY08” refer to the fiscal year ending March 31, 2008 in this material. Q1/FY2008 Summary of Consolidated Earnings Results 2 Q1/FY2008 Summary of consolidated earnings results <unit: bn JPY> <Quarterly> Q1/FY07 Q1/FY08Q1/FY08 Year on Year (Apr/07-Jun/07) (Apr/06-Jun/06) Net Sales 663.0 494.2 +168.8 EBITDA 149.7 104.3 +45.4 Operating income 78.7 54.3 +24.3 Ordinary income 51.1 25.9 +25.1 Income before income taxes and 58.4 29.3 +29.1 minority interests Net income 25.1 1.4 +23.7 *Operating results of SOFTBANK MOBILE Corp. (former Vodafone K.K.) were consolidated from May 1, 2006. 3 Q1/FY2008 Highlight <unit: k> Quarterly net addition SoftBank NTT DoCoMo KDDI 530 530 520 520 500 LargeLarge increaseincrease 240 30 0 Q1/07 Q1/08 Q1/07 Q1/08 Q1/07 Q1/08 4 Q1/FY2008 Highlight <unit: bn JPY> Quarterly consolidated operating income 78.7 45% increase 54.3 50 LargeLarge increaseincrease YoY SOFTBANK +45%↑ KDDI +16%↑ NTT DoCoMo -25%↓ 0 Q1/07 Q1/08 5 Consolidated net sales (Quarterly) <unit: bn JPY> 700 663.0 600 494.2 500 400 Q1/08 663.0bn JPY 300 258.6 200 IncreasedIncreased 34%34% YoYYoY 100 0 Q1/06 Q1/07 Q1/08 *Operating results of SOFTBANK MOBILE Corp. (former Vodafone K.K.) were consolidated from May 1, 2006. 6 Consolidated net sales (Quarterly) <unit: bn JPY> 700 663.0 600 494.2 500 389.0 Mobile Communications (SOFTBANK MOBILE) 400 231.5 300 258.6 Others 58.2 e-Commerce 200 58.5 55.8 Internet Culture 34.4 44.4 51.8 100 87.3 81.8 77.8 Fixed-line Telecommunications (SOFTBANK TELECOM) 61.0 62.7 64.3 BB Infrastructure 0 Q1/06 Q1/07 Q1/08 *Operating results of SOFTBANK MOBILE Corp. (former Vodafone K.K.) were consolidated from May 1, 2006. 7 Consolidated EBITDA (Quarterly) <unit: bn JPY> 149.7 150 104.3 Mobile Communications 100 92.4 (SOFTBANK MOBILE) 92.4bn JPY 55.8 Q1/08 50 149.7bn JPY 48.5 57.3 19.5 IncreasedIncreased 44%44% YoYYoY 0 Q1/06 Q1/07 Q1/08 EBITDA： Operating Income (loss) +depreciation and amortization, loss on disposal of fixed assets included in operating expenses 8 Consolidated operating income (Quarterly) <unit: bn JPY> 90 78.7 80 70 60 54.3 50 Q1/08 40 78.7bn JPY 30 20 10 -3.1 IncreasedIncreased 45%45% YoYYoY 0 -10 Q1/06 Q1/07 Q1/08 *Operating results of SOFTBANK MOBILE Corp. (former Vodafone K.K.) were consolidated from May 1, 2006. 9 Consolidated operating income (Quarterly) 90 <unit: bn JPY> 80 78.7 70 60 54.3 43.5 Mobile Communications 50 (SOFTBANK MOBILE) 43.5bn JPY 40 27.2 Q1/08 30 78.7bn JPY 20 27.0 35.2 10 IncreasedIncreased 45%45% YoYYoY -3.1 0 Q1/06 Q1/07 Q1/08 -10 *Operating results of SOFTBANK MOBILE Corp. (former Vodafone K.K.) were consolidated from May 1, 2006. 10 Consolidated ordinary income (Quarterly) <unit: bn JPY> 60 51.1 50 40 30 25.9 Q1/08 51.1bn JPY 20 10 IncreasedIncreased 97%97% YoYYoY 0 Q1/06 Q1/07 Q1/08 -10 -13.0 -20 11 Consolidated net income (Quarterly) <unit: bn JPY> 30 25.1 20 10 Q1/08 25.1bn JPY 1.4 0 Q1/06 Q1/07 Q1/08 18X18X YoYYoY -10 -11.1 -20 12 Consolidated net income (Quarterly) <unit: bn JPY> Q1/FY07 Q1/FY08Q1/FY08 <Notes> (Apr/07-Jun/07) (Apr/06-Jun/06) Ordinary income 5511..11 25.9 Gain on sale of investment 3.3 securities 4.6 Special income, net 7.2 Dilution gain from changes in equity interest 2.8 Income before income taxes and minority 5858..44 29.3 interests Income taxes: 2.8 10.1 Current Income taxes: 20.0 9.2 Primarily SOFTBANK Deferred MOBILE Minority interests 10.3 8.5 Primarily Yahoo Japan Net income 2525..11 1.4 13 Consolidated cashflow (Quarterly) <unit: bn JPY> Q1/FY08Q1/FY08 <Notes> (Apr/07-Jun/07) Corporate tax (29.7) Operating Interest paid (26.3) (27.4) Inventory increase (32.7) cashflow Installment receivables increase (75.7) Investing Purchase of property & equipment & (111.5) cashflow intangibles (92.9) Revenue from securitizing installment Financing receivables +88.1 218.4 cashflow Revenue from leasing newly acquired facilities +149.8 14 EBITDA by segment (Quarterly) <unit: bn JPY> 160 149.7 140 120 104.3 Mobile Communications 100 (SOFTBANK MOBILE) 80 60 BB Infrastructure Fixed-line Telecommunications 40 (SOFTBANK TELECOM) 19.5 Internet Culture 20 (Yahoo Japan) e-Commerce 0 Others Q1/06 Q1/07 Q1/08 -20 15 Operating income by segment (Quarterly) <unit: bn JPY> 90 78.7 Consolidated Operating income 70 54.3 Mobile Communications 50 (SOFTBANK MOBILE) BB Infrastructure 30 Internet Culture (Yahoo Japan) 10 e-Commerce -3.1 Fixed-line Telecommunications (SOFTBANK TELECOM) -10 Others Q1/06 Q1/07 Q1/08 -30 16 Cash position <unit: bn JPY> 700 Unused portion of credit line facility Cash & cash equivalents 600 119.0 500 69.0 400 300 485.9 386.2 200 100 0 March/ 2007 June/ 2007 17 Net interest-bearing debt <unit: bn JPY> 2,500 2,000 1,651.9 1,622.2 1,500 Investment by SOFTBANK and Yahoo Japan in SBM: 320.0 bn JPY 1,000 SBM Net interest- bearing debt (Non- 531.6 recourse) including 500 454.6 SBM loan balance of: 356.1 389.0 CB 1,342.1 bn JPY 0 Net interest- Net interest- Net interest- Net interest- bearing debt bearing debt bearing debt bearing debt excl. SBM related to excl. SBM related to related SBM related SBM e/o March 05 e/o March 06 e/o March 07 e/o June 07 SBM: SOFTBANK MOBILE Corp. 18 Procurement through securitization of installment sales receivables Amount 88.1bn JPY procured Procurement June 2007 time Moody’s: Aaa (program for institutional investors 65.1bn JPY） Rating R&I : A (program for individual investors 23.0bn JPY) Applicable Receivables of installment sales of mobile handsets receivables Use of funds Repayment of existing debt and capital expenditure, etc. Accounting The procured funds are recorded as “borrowings” procedures • Improve working capital gap incurred by accumulation of installment sales receivables • Reduce procurement cost as result of high credit rating 19 Ratings JCR (AA-) AA－/AA3 A+/A1 Mobile Communications business securitization ratings S&P (A) A/A2 (WBS structured rating (senior portion)) Moody’s (A3) A－/A3 BBB+/Baa1 JCR (BBB) BBB/Baa2 BBB－/Baa3 Jun 2007 S&P raised BB+/Ba1 BB/Ba2 Moody’s (Ba2) BB－/Ba3 S&P (BB) B+/B1 2003 2004 20052006 2007 JAPAN TELECOM CO., LTD. Vodafone K.K. acquisition acquisition 20 BusinessBusiness ProgressProgress 21 Net addition share 100% No.No. 11 inin netnet additionaddition shareshare forfor 33 consecutiveconsecutive monthsmonths 80% (May to July 2007) 60% SoftBank July 2007 net addition share 40% KDDI 16% 20% NTT DoCoMo 38% 45% 0% Vodafone April April April July 2005 2006 2007 -20% Source： Telecommunications Carriers Association (Excluding EMOBILE) 22 Net addition (k) 600 No.No. 11 inin netnet additionsadditions forfor 500 33 consecutiveconsecutive monthsmonths (May to July 2007) 400 300 SoftBank 225k 200 KDDI 191k 100 NTT DoCoMo 81k 0 Vodafone April April April July 2005 2006 2007 -100 Source： Telecommunications Carriers Association (Excluding EMOBILE) 23 Net addition (excl. prepaid) (k) 600 OverwhelmingOverwhelming positionposition 500 asas No.No. 11 inin netnet additionsadditions (May to July 2007) 400 300 SoftBank 256k 200 KDDI 182k 100 NTT DoCoMo 80k 0 Vodafone April April April July 2005 2006 2007 -100 Source： Telecommunications Carriers Association (Excluding EMOBILE) 24 Cumulative subscribers (m) ShiftShift toto 3G3G isis 18 16.67 acceleratingaccelerating furtherfurther 16 15.11 14.98 15.27 14 12 2G 10 e/o July 2007 8 3G subscribers: 99.853m.853m 6 3G ratio:59.1%59.1% 4 2 3G 0 April April April April 2004 2005 2006 2007 25 Reasons for being No.1 in net additions DramaticDramatic improvementimprovement inin 44 areasareas Marketing (Price/ Brand) Content Handsets Network 26 Network: Base stations (BS) 46,000 1 August 2007: Achieved 46,00046,000 BSBS 22,000 MoreMore thanthan doubleddoubled afterafter acquisitionacquisition Q1 Q2 Q3 Q4 Q1 1 Aug FY07 FY08 27 Network: Towards perceived improvement Users’ sense of improving network (during previous 2-3 months) WithWith June June 2006 2006 as as 100: 100: ImprovedImprovedImproved bybyby22 27%7%7% !!! 100 IncreaseIncrease inin usersusers’’ sensesense ofof improvingimproving networknetwork Source: Research by an external institution June June 2006 2007 28 Handsets: Comparison of model variety (models) 30 SoftBank NTT DoCoMo 27 KDDI 23 No.No. 1!1! 20 16 16 12 10 10 0 Mar to Aug Mar to Aug Mar to Aug Mar to Aug Mar to Aug Mar to Aug 2006 2007 2006 2007 2006 2007 29 Handsets: Comparison of color variety (colors) SoftBank NTT DoCoMo KDDI 100 99 80 OverwhelminglyOverwhelmingly 71 No.No. 1!1! 61 60 49 39 40 31 20 0 Mar to Aug Mar to Aug Mar to Aug Mar to Aug Mar to Aug Mar to Aug 2006 2007 2006 2007 2006 2007 30 Handsets: Last year’s lineup (targeted layer) 60’s and over Last year options were limited 50’s Slim 40’s 2006 summer models (3G) 30’s One-seg 20’s 705SH 10’s Music Business 905SH 804NK 705T 31 Handsets: This summer’s lineup (targeted layer) 60’s and over Lineup suits all generations 50’s Simple GENT 40’s 812SH s Coordination 30’s Slim High-spec 20’s One-seg Display prevented 10’s due to protection of rights.