Earnings Results for the Three-month Period Ended June 30, 2008 (FY2008/Q1) Analyst Meeting. August 6, 2008 SOFTBANK CORP. 1

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1 Earnings Results for the Three-month Period Ended June 3, 28 (FY28/Q1) Analyst Meeting August 6, 28 SOFTBANK CORP. 1

2 Content Accounting Consolidated P/L Analysis 4 Consolidated B/S Analysis 12 Consolidated C/F Analysis 2 Finance Maximize Free Cash Flow 26 Towards Stage of Decreasing Interest-bearing Debt 32 Improve Various Financial Indices 42 Operating Broadband Infrastructure Segment 51 Fixed-line Telecommunications Segment 55 Mobile Communications Segment 59 2

3 Accounting Kazuko Kimiwada General Manager Accounting, Internal Control SOFTBANK CORP. 3

4 Consolidated P/L Analysis Consolidated B/S Analysis Consolidated C/F Analysis 4

5 Scope of Consolidation/Scope of Equity Method <P/L-1> No. of Comp. Core Companies Consolidated subsidiaries 15 SOFTBANK MOBILE, SOFTBANK BB, SOFTBANK TELECOM, Yahoo Japan, SOFTBANK TECHNOLOGY, ITmedia, etc. Newly consolidated companies 5 SOFTBANK TELECOM PARTNERS CORP. (*1), Alibaba.com Japan, etc. Subsidiaries excluded from consolidation 9 Broadmedia, etc. Non-consolidated subsidiaries 74 Insignificant companies Non-consolidated subsidiaries under the equity method 4 Entities newly accounted under the equity method 1 Affiliated companies under the equity method 71 Gung Ho Online Entertainment, MySpace Japan, Alibaba Group Holding Limited, etc. Entities newly accounted under the equity method 1 Broadmedia, etc. Entities no longer accounted under the equity method 3 Non-consolidated subsidiaries not under the equity method 7 Insignificant companies Affiliated companies not under the equity method 19 Insignificant companies Consolidated subsidiaries Companies under equity method Core group companies Main business activities Mobile Communications 5 2 SOFTBANK MOBILE (SBM) - Mobile phone service - Sales of mobile phone handsets Broadband Infrastructure 5 3 SOFTBANK BB (SBB) - ADSL and fiber-optic high-speed Internet connection services Fixed-line Telecommunications 4 - SOFTBANK TELECOM (SBTM) - Fixed-line telecommunications service - Data center service Internet Culture Yahoo Japan - Online advertisement e-commerce 7 4 SOFTBANK BB, Vector, Carview - Distribution of PC, software, and PC accessories - e-commerce towards businesses and consumers Others 7 47 SOFTBANK TECHNOLOGY, ITmedia -Technology service business - Media marketing business - Overseas fund business Total *1 Changed its company name from JAPAN TELECOM INVOICE Co., Ltd. on July 1, 28. *2 SOFTBANK BB Corp. SOFTBANK TELECOM Corp., and Yahoo Japan Corporation are included in the consolidated subsidiaries of the Broadband Infrastructure, Fixed-line Telecommunications, and Internet Culture segments respectively, while SOFTBANK BB Corp., SOFTBANK TELECOM Corp., and Yahoo Japan Corporation operate multiple business and their operating results are allocated to multiple business segments. 5

6 Consolidated P/L Summary <P/L-2> Net Sales Operating Income Ordinary Income Net Income 3, 2, , , 71.6 Q FY7/Q1-2% % FY8/Q1 FY7/Q1 FY8/Q % FY7/Q1 FY8/Q % FY7/Q1 FY8/Q1 6

7 Consolidated Net Sales <P/L-3> (-2%) (24.1) 21.8 (2.5) Mobile Communications Broadband Infrastructure Fixed-line Telecommunications Internet Culture e-commerce Elimination Mobile Communications (-19. bn) - Increase in subscribers (+4.5bn) - Decrease in ARPU (-46.4bn) - Decrease in sales of mobile handsets and accessories (- 13.9bn) Broadband Infrastructure (-5.6bn) - Decrease in the number of ADSL charged users (-3.8bn) - Decrease in ADSL ARPU (-.9bn) - Decrease in ODN (-1.bn) Fixed-line Telecommunications (-2.bn) - Increase in OTOKU Line (+3.4bn) - Decrease in MYLINE (-3.5bn) - Decrease in international traffic (-2.2bn) Internet Culture (+9.5bn) - Increase in advertising business (+14.8bn) (gross basis) - Effect of changing part of sales from gross to net basis (-6.9bn) FY7/Q1 FY8/Q1 7

8 Consolidated Operating Income (loss) <P/L-4> (+8%) Mobile Communications Mobile Communications (+.7bn) - Decrease in net sales (-19.bn) - SBM decrease in cost of sales of handsets etc. (+14.2bn) - SBM decrease in SGA such as sales incentive etc. (+4.9bn) Broadband Infrastructure (+1.8bn) - Decrease in net sales (-5.6bn) - SBB decrease in depreciation and cost of sales etc. (+3.4bn) - SBB decrease in SGA such as customer acquisition cost etc. (+2.9bn) Broadband Infrastructure Fixed-line Telecommunications Fixed-line Telecommunications (+.9bn) - Decrease in net sales (-2.bn) - SBTM decrease in cost of sales (access charges etc.) (+4.2bn) - SBTM decrease in SGA such as personnel costs etc. (+.6bn) Internet Culture Internet Culture (+3.3bn) (.1) FY7/Q1 e-commerce Fixed-line Telecommunications FY8/Q1 e-commerce - Increase in net sales (+9.5bn) - Increase in cost of sales due to Overture K.K newly consolidated etc. (-4.5bn) - Increase in personnel costs and SGA (-1.1bn) 8

9 Non-operating Income/Loss and Ordinary Income Non-operating Income/Loss Ordinary Income <P/L-5> Other non-operating expenses Interest expense Other non-operating income Equity in earnings (loss) of affiliated companies Foreign exchange gain Interest income Non-operating income/ loss (net) (1.6) (26.9) (28.4) 7/Q1 Ordinary income Increase in operating income ) (.7) Decrease in non-operating income Increase in non-operating expenses 8/Q1 Ordinary income (5.1) (27.5) (3.8) (2.8) (+6%) 54.2 FY27/Q1 FY28/Q1 9

10 Special Income/Loss and Income Before Income Taxes and Minority Interests (.1) (2.) Special Income/Loss Other special loss Unrealized loss on valuation of investments at subsidiaries in the U.S., net Valuation loss on investment securities Other special income Dilution gain from changes in equity interest Gain on sale of investment securities Special income/loss( NET) (1.3) (.8) Income Before Income Taxes and Minority Interests 7/Q1 Income before income taxes & minority interests 58.4 Increase in ordinary income +3.1 (4.2) Decrease in special income (1.) (2%) Decrease in special loss <P/L-6> < bn JPY> 8/Q1 Income before income taxes & minority interests 57.3 FY27/Q1 FY28/Q1 *Unrealized loss on valuation of investments and gain on sale of investments at subsidiaries in the U.S, net 1

11 Tax and Other Adjustments, Difference in Tax Rate <P/L-7> Tax and Other Adjustments Difference in Tax Rate Income taxes; current 11.7 Yahoo Japan 11.6 Statutory income tax rate 4% Income taxes; deferred 14.5 Mainly Yahoo Japan Corporation Amortization of goodwill +1% Decrease in valuation allowance -5% Income before income taxes & minority interests 57.3 Minority interests in net income 11.7 Effective income tax rate 45% BBM use of deferred tax assets etc. 6.2 SBM adjustments for depreciation and amortization etc. 3.4 Net income

12 Consolidated P/L Analysis Consolidated B/S Analysis Consolidated C/F Analysis 12

13 Consolidated B/S Summary Current Assets SBM Others Current Liabilities <B/S-1> 1, , ,24.7 1, , Mar 28 Jun 28 Fixed Assets Mar 28 Jun 28 Long-term Liabilities 2, ,962. 2, , ,986. 1, , , Mar 28 Jun 28 Mar 28 Jun 28 13

14 Consolidated B/S (1) Current Assets <B/S-2> Assets e/o Mar 28 e/o Jun 28 Variance Outline Current assets 1, , SBM 1, Others Cash and deposits Increase provided by operating activities (+44.7) Securitization of installment sales receivables (procured +45.3, paid -41.2) SBM Sales and lease back of equipment newly acquired (received +15.9, paid -17.3) Purchase of fixed assets (-56.4) Repayment of SBM loan (-14.5) SB stand-alone: e/o Mar 8 (57.8) >> e/o Jun 8 (59.8) Breakdown: borrowings (+47.5), redemption 2 th series Unsecured SB (-12.5) OPI stock acquisition (-1.4), dividend payment (-2.) Others Yahoo Japan: e/o 8/3 (97.2) >> e/o Jun 8 (48.3) Breakdown: (+7.5) increase provided by operating activities after income tax of 28.1 stock buyback (-33.3), repayment of borrowings (-1.), dividend payment (-6.2) Notes and accounts receivable-trade SBM Others Mobile handset installment sales receivables e/o Mar 8 (479.5) >> e/o Jun 8 (495.3) SBB: e/o Mar 8 (89.1) >> e/o Jun 8 (8.1) SBTM: e/o Mar 8/3 (66.8) >> e/o Jun 8 (46.7) Merchandise SBM Mobile handsets etc. Other SBB: e/o Mar 8 (9.5) >> e/o Jun 8 (11.) Deferred tax assets SBM Others Other SBM Accounts receivable-other e/o Mar 8 (24.1) >> e/o Jun 8 (28.4) 2.6 Allowance for doubtful accounts e/o Mar 8 (-6.1) >> e/o Jun 8 (-69.2) Others

15 Consolidated B/S (2) Tangible Assets Assets e/o Mar 28 e/o Jun 28 Variance Outline <B/S-3> Fixed assets 2, , SBM 1,986. 1, Others Property and equipment, net SBM , , Others Building and structures Telecommunications equipment Telecommunications service lines Land SBM Others SBTM: e/o Mar 8 (7.1) >> e/o Jun 8 (6.2), SBIDC (5.) Construction-inprogress Other SBM Others SBM SBM Others Network center etc. SBTM: e/o Mar 8 (28.9) >> e/o Jun 8 (27.6) Others SBTM: e/o Mar 83 (14.9) >> e/o Jun 8 (13.9) SBB: e/o Mar 8 (45.5) >> e/o Jun 8 (43.3) SBM Others SBM Others SBTM: e/o Mar 8 (76.6) >> e/o Jun 8 (75.1) 15

16 Consolidated B/S (3) Intangible Assets Assets e/o Mar 28 e/o Jun 28 Variance Outline Intangible assets, net 1, , SBM 1, , Others Goodwill 1, SBM Decrease due to amortization Others SOFTBANK TELECOM PARTNERS (+24.), Yahoo Japan (+14.3) Software SBM Others Other SBM Others Investments and other assets SBM Others Investment securities and investment in partnership SBM Others Decline in share price of Yahoo! Inc. Deferred tax assets SBM Others Other SBM Others SBH: derivative assets (+1.3) Deferred charges SBM Others Recorded due to buyback of stock by Yahoo, June 8 Amount: 14.3bn amortization period: 2years Amount at acquisition in April 28 : 24.6bn amortization period: 1 years <B/S-4> 16

17 Consolidated B/S (4) Current Liabilities Liabilities e/o Mar 28 e/o Jun 28 Variance Outline <B/S-5> Current liabilities 1,24.7 1, SBM Others Accounts payable-trade SBM Mobile handsets costs payable etc. Others SBB: e/o Mar 8 (45.2) >> e/o Jun 8 (36.3) SBTM: e/o Mar 8 (8.5) >>e/o Jun 8 (2.3) Short-term borrowings SBM Short-term borrowings from installment sales receivables securitization 14.5 structure (+14.5) SB stand-alone: e/o Mar 8 (218.) >> e/o Jun 8 (285.5) Others SBTM: e/o Mar 8 (32.) >> e/o Jun 8 (26.2) Yahoo Japan: e/o Mar 8 (2.) >> e/o Jun 8 (2.) Commercial paper SBM Others SB stand-alone: (+2.) Current position of corporate bonds SBM Others SB stand-alone: redemption e/o Mar 8 (52.5) >> e/o Jun 8 (4.) Accounts payable-other SBM Mainly payable for capital expenditure, operating expenses, etc. Others SBB: e/o Mar 8 (3.7) >> e/o Jun 8 (26.1) SBTM: e/o Mar 8 (37.4) >> e/o Jun 8 (34.3) Current portion of lease obligations SBM Transferred from the long-term (+21.8), lease paid (-17.3) Others.2.2 Others SBM Others Accounting treatment under new accounting standard for lease transactions. Leases contracted before April 1, 28 can be continuously accounted for as operating lease transactions. 17

18 Consolidated B/S (5) Long-term Liabilities <B/S-6> Liabilities e/o Mar 28 e/o Jun 28 Variance Outline Long-term liabilities 2, , SBM 1, , Others Corporate bonds SBM Others SB stand-alone: redemption (-1.6) Long-term debt 1, , SBM loan e/o Mar 8 (1,276.4) >> e/o Jun 8 (1,261.9) SBM 1, , Vodafone subordinate loan e/o Mar 8 (84.5) >> e/o Jun 8 (84.5) Installment sales receivables structure borrowings e/o Mar 8 (53.1) >> e/o Jun 8 (42.6) Others ,49.8 SB stand-alone: e/o Mar 8 (2.) >> e/o Jun 8 () Yahoo Japan: e/o Mar 8 (3.) >> e/o Jun 8 (2.) Deferred tax liabilities SBM Others Allowance for point mileage SBM Allowance for point mileage Others Lease obligations SBM Newly procured (+2.8), transferred to short-term (-21.8) Others.4.4 Other Please refer to P17 for lease transactions SBM Others SBH: derivative liabilities (-2.5) SBB: deferred revenue (mainly modem rental business securitization advanced royalty balance etc.) e/o Mar 8 (15.9) e/o Jun 8 (12.3) 18

19 Consolidated B/S (6) Equity <B/S-7> Net Assets e/o Mar 28 e/o Jun 28 Variance Outline Equity Shareholders equity Common stock Cash receipts for new stock subscriptions - Additional pain-in capital Accumulated deficit Net income (19.3), dividend payment (-2.7) Treasury stock Valuation and translation adjustment Unrealized gain on available-for-sale securities (-18.1), deferred gain/loss On derivatives under hedge accounting (+17.7), foreign currency translation adjustments (-3.) Stock acquisition rights.1.1 Minority interests BBM e/o 8/6 (3.) *Issue preferred stock to Vodafone International Holdings B.V. Yahoo Japan e/o Mar 8 (149.1) >> e/o Jun 8/6 (132.3) * Related to stock buyback of Yahoo Japan 19

20 Consolidated P/L Analysis Consolidated B/S Analysis Consolidated C/F Analysis 2

21 <CF> Consolidated Cash Flow Main Breakdown Financing C/F (32.2) Investing C/F (9.7) Operating C/F Cash and cash equivalents at the end of the period Repayment of lease obligations Proceeds from sale and lease back of equipment newly acquired Purchase of treasury stock of subsidiaries in consolidation Redemption of bonds Repayment of long-term debt Proceeds from long-term debt Increase in short-term borrowings Proceeds from sale of marketable and investment securities Purchase of marketable and investment securities Purchase of property & equipment & intangibles Income taxes paid Decrease in payables-trade Decrease in notes & accounts receivable trade (non-installment) Change in mobile handset installment receivables Amortization of goodwill Depreciation & amortization Income before income taxes and minority interests Cash and cash equivalents at the beginning of the period 21 * Significant items from the consolidated C/F statement are shown here.

22 22

23 Finance Yoshimitsu Goto General Manager Finance, Group Management SOFTBANK CORP. 23

24 FY28 Financial Strategies Towards appropriate level of leverage Maximize FCF in each segment and decrease interest-bearing debt Improve various financial indices and equity ratio Improve credit rating as a result of the above Respond to market trends flexibly Minimize financial risks in each of the markets Secure diverse procurement methods selectively depending on market conditions Improve procurement costs by business segment and objective IR activities up to speed as business expands IR activities up to speed as business expands Sustain proactive quarterly domestic and overseas IR meetings Approach all layers of investors Satisfy requests from debt and equity markets thoroughly 24

25 Major Financial Activities of FY8/Q1 Date Content Amount April 28 Investment in Oak Pacific Interactive Investment in SOFTBANK TELECOM PARTNERS (*) JPY 1.2bn JPY 25.5bn June 28 Securitization of installment receivables (fifth) JPY 45.3bn * Changed its company name from JAPAN TELECOM INVOICE Co., Ltd. on July 1,

26 Expand Free Cash Flow Reduce Interest-bearing Debt Improve Various Financial Indices 26

27 Consolidated EBITDA and EBITDA Margin Cash flow from operations increasing steadily Consolidated EBITDA 3% EBITDA Margin % 21% 23% 25% 5 14% % 5% Q1-1 % (2.7) FY3 FY4 FY5 FY6 FY7 8/Q1 FY4 Yearly Quarterly Yearly Quarterly FY5 FY6 FY7 8/Q1 27

28 EBITDA and EBITDA Margin (by segment) EBITDA of each segment is increasing steadily Consolidated EBITDA Mobile Communications Fixed-line Telecommunications BB Infrastructure 7 e-commerce Internet Culture Other Elimination % 5% 53% EBITDA Margin 55% 52% 51% Internet Culture 53% 5 4% Broadband Infrastructure % 2% 1% 18% 6% 27% 27% 22% 24% 27% 21% Mobile Communications 11% 13% 14% Fixed-line Telecommunications -1 % FY4 FY5 FY6 FY7 8/Q1 FY4 FY5 FY6 FY7 FY8/Q1 Yearly Quarterly Yearly Quarterly 28

29 CAPEX (acquisition and forecast) Completed a cycle of CAPEX for BB, Fixed-line, 3G base stations at Mobile CAPEX (Yearly forecast) (Quarterly actual) 51.5 FY26 FY27 8/Q1 Yearly Quarterly Mobile Communications BB Infrastructure Fixed-line Telecommunications Internet Culture e-commerce Other *CAPEX on acquisition basis 29

30 EBITDA-CAPEX Steady increase due to expansion of EBITDA and completion of first of CAPEX 8 EBITDA-CAPEX EBITDA CAPEX EBITDA-CAPEX (FY8 Forecast) FY5 FY6 FY7 FY8 * FY8 is indicated as an assumed amount annualized as follows: (EBITDA of FY8/Q1) X 4 forecast FY28 CAPEX *CAPEX on acquisition basis 3

31 EBITDA-CAPEX (by segment) EBITDA & CAPEX (FY8/Q1 actual) EBITDA-CAPEX (FY8/Q1 actual) 1 EBITDA CAPEX Mobile BB Infra Fixed-line Internet Culture Others -5 Mobile BB Infra Fixedline Internet Culture Others -2 *CAPEX on acquisition basis 31

32 Expand Free Cash Flow Reduce Interest-bearing Debt Improve Various Financial Indices 32

33 Interest-bearing Debt Interest-bearing Debt 3, 2, Securitization of installment sales receivables obligations Interest-bearing debt (excl. installments) 2,66.3 2, , , , 1, 2,539. 2, , , ,322.2 e/o Jun 7 e/o Sep 7 e/o Dec 7 e/o Mar 8 e/o Jun 8 Definition: interest-bearing debt = short-term borrowings + long-term borrowings + bonds + current portion of bonds + CP * Interest-bearing debt before FY27 is calculated with retroactive adjustments by adding the cash receipts as collateral relating to marketable security lending transactions. * Lease obligations are not included in interest-bearing debt. Please refer to the next page for details on lease obligations. 33

34 Balance of Lease Obligations Balance of Lease Obligations 3, Finance leases (off balance) Finance leases (on balance) 2, 1, e/o Jun 7 e/o Sep 7 e/o Dec 7 e/o Mar 8 e/o Jun 8 Definition: lease obligations = financing leases (on balance + off balance) 34

35 Cash Position Cash Position Unused portion of credit line facility 4 1. Cash&cash equivalents e/o Jun 7 e/o Sep 7 e/o Dec 7 e/o Mar 8 e/o Jun 8 Definition: cash position = cash&cash deposits, marketable securities unused portion of credit line facility = credit line facility size - credit line borrowings 35

36 Net Interest-bearing Debt Balance 3, Net Interest-bearing Debt Securitization of installment sales receivables obligations Net interest-bearing debt (excl. installments) 2, 2, , , , , , 2,53.1 1, , , ,896.2 e/o Jun 7 e/o Sep 7 e/o Dec 7 e/o Mar 8 e/o Jun 8 Definition: net interest-bearing debt = interest-bearing debt - cash position * Interest-bearing debt before FY27 is calculated with retroactive adjustments by adding the cash receipts as collateral relating to marketable security lending transactions. 36

37 Interest-bearing (by procurement method) Interest-bearing Debt 3, 2, ,66.3 2, , , Securitization of installment sales receivables obligations SBM Loan 2, 1, , ,295. 1, ,261.9 Vodafone subordinate loan 1, Yahoo Japan Corporation borrow ings Borrow ings from other financial institutions, etc e/o Jun 7 e/o Sep 7 e/o Dec 7 e/o Mar 8 e/o Jun 8 Bonds & CP * Interest-bearing debt before FY27 is calculated with retroactive adjustments by adding the cash receipts as collateral relating to marketable security lending transactions. * Lease obligations are not included in interest-bearing debt. Please refer to the next page for details on lease obligations. 37

38 Reduce Debts (1) SBM Loan SBM loan repayment exceeds forecast 15 SBM Loan Cumulative Repayment Amount Mobile Communications leverage ratio(*) x3.9 (FY8/Q1) * Leverage ratio = interest-bearing debt / EBITDA (annualized) 7/Q1 8/Q1 8/July 38

39 Reduce Debts (2) Bond Redemption Schedule Secure sufficient cash position in accordance with the redemption schedule 1, Repayment Resources Bond Redemption Schedule 8 SB Straight Bond SB CB (*2) Other corporate bonds SBTM Straight Bond Phoenix JT Subordinated Notes CB 2 (e/o Jun 8) (e/o Jun 8) Holding Cash (FY27) EBITDA shares (*1) position *1 Market cap of SOFTBANK held listed shares is calculated based on the share price of investment securities (listed&public companies only). Shares as collateral and others are excluded. *2 Concerning CB due 213, 214, 215, under certain conditions early redemption of these bonds due to the holders' or companies request is possible respectively after 27, 28, and FY8 FY9 FY1 FY11 FY12 FY13 FY14 FY15 FY16 Others.1 39

40 Reduce Debts (3) Corporate Bond Details (m JPY) Company name Bond Issue date Maturity date Interest rate (%/year) Collateral Mar 8 balance Jun 8 balance Change 19th series Unsecured Straight Bond 25/1/31 21/1/ None 19, 19, - 2th series Unsecured Straight Bond (1st Fukuoka SoftBank HAWKS bond) 25/6/9 28/6/ None 12,5 - (12,5) 21st series Unsecured Straight Bond 25/9/14 28/9/ None 2, 2, - 22nd series Unsecured Straight Bond 25/9/14 21/9/ None 36,4 36,4-23rd series Unsecured Straight Bond (2nd Fukuoka SoftBank HAWKS bond) 25/11/29 28/11/ None 2, 2, - SOFTBANK 24th series Unsecured Straight Bond (3rd Fukuoka SoftBank HAWKS bond) 27/4/26 21/4/ None 2, 2, - 25th series Unsecured Straight Bond 27/6/19 211/6/ None 55, 55, - 26th series Unsecured Straight Bond 27/6/19 214/6/ None 15, 15, - Convertible Bond due 213 (*1) 23/12/3 213/3/ None 5, 5, - Convertible Bond due 214 (*1) 23/12/3 214/3/ None 5, 5, - Convertible Bond due 215 (*1) 23/12/3 215/3/31 2. None 5, 5, - Euro-denominated Senior Notes due 213 (*2) 26/1/12 213/1/ None 57,311 57,799 (425m Euro) (415m Euro) (1,512) SOFTBANK TELECOM 1st series Unsecured Straight Bond 24/12/7 29/12/7 2. None 45, 45, - 2nd series Unsecured Straight Bond 24/12/7 211/12/ None 15, 15, - Phoenix JT Subordinated Notes Due /12/24 216/12/ None 32,4 32,4 - Other corporate bonds Total , ,739 (14,12) (*1) Concerning CB due 213, 214, 215, under certain conditions early redemption of these bonds due to the holders' or companies request is possible respectively after 27, 28, and 29. (*2) 85m EUR of the Euro-denominated Senior Notes Due 213 was redeemed during FY27. (*3)The above table does not include straight bonds issued by SOFTBANK MOBILE, on which a debt assumption was executed. 4

41 Securitization of Installment Receivables Continue securitization of installment receivables going forward Newly Procured Details Securitization of Installment Sales Receivables Obligations Balance Individual investors Institutional investors /Q1 7/ 7/ 7/ 8/Q1 7/Q1 7/ 7/ 7/ 8/Q1 41

42 Expand Free Cash Flow Reduce Interest-bearing Debt Improve Various Financial Indices 42

43 Improve Indices (1) Interest-bearing Debt/EBITDA Multiple Combine reduction of interest-bearing debt and expansion of EBITDA Interest-bearing Debt/ EBITDA Multiple (Ref.) Net Interest-bearing Debt/ EBITDA Multiple FY5 FY6 FY7 8/Q1. FY5 FY6 FY7 8/Q1 *1 Interest-bearing debt before FY26 is calculated with retroactive adjustments by adding the cash receipts as collateral relating to marketable security lending transactions. *2 Lease obligations are not included in interest-bearing debt. *3 FY8 has been annualized by multiplying the 8/Q1 EBITDA by 4. 43

44 Improve Indices (2) Equity Ratio Improve equity ratio through steady build up of profit Actual Basis (Ref.) Considering Unrealized Gain Shareholders' equity Equity ratio Shareholders' equity (considering unrealized gain) Equity ratio (considering unrealized gain) 23.8% 24.5% 26.% 25.5% 23.8% 7.1% 7.9% 8.7% 8.4% 9.% 1,29.5 1, , , , /Q1 7/ 7/ 7/ 8/Q1 7/Q1 7/ 7/ 7/ 8/Q1 *Refer to the page 7 of the supplemental data for calculation basis. 44

45 Improve Indices (3) Debt/Equity Ratio Ratio improving steadily (times) Debt/Equity Ratio D/E ratio D/E ratio (excl. mobile) (times) Net Debt/Equity Ratio Net D/E ratio Net D/E ratio (excl. mobile) /Q1 7/Q1 8/Q1 *1 Interest-bearing debt and net interest-bearing debt before e/o Dec 27 are calculated with retroactive adjustments by adding the cash receipts as collateral relating to marketable security lending transactions. *2 Lease obligations are not included in interest-bearing debt. *3 Excluding Mobile: SOFTBANK MOBILE and BB Mobile s balance has been deducted from consolidated interest-bearing debt and net interest-bearing debt balance respectively. 6/Q1 7/Q1 8/Q1 45

46 Improve Indices (4) Interest Coverage Ratio Maintain stable trend (times) 12. Quarterly Interest Coverage Ratio (*1) Yearly Interest Coverage Ratio(*2) (times) Interest coverage ratio 8. Interest coverage ratio /Q1 8/Q1 * Interest coverage ratio = EBITDA/ interest expenses FY25 FY26 FY27 FY28Q1 *1 Interest expense for FY27/ include retroactively adjusted stock bailment fees relating to marketable security lending transactions. *2 Stock bailment fees relating to marketable security lending transactions have been added to interest expense before FY26 include retroactively adjusted. 46

47 Credit Rating AA-/AA3 A+/A A/A A-/A3 BBB+/Baa1 BBB/Baa2 Credit rating criteria: More stability in profit due to BB business stable profit, fixed-line business revenue improved, and mobile communications business favorable trend Towards upgrading: Enhance earning capacity of Broadband, fixed-line and mobile communications business further Steadily promote financial strength (reduce debt) Downgrading risks Rapid erosion of ADSL business competitiveness Non-conservative financing (increase of leverage etc.) JCR(AA-) S&P (A) Moody s s (A3) JCR (BBB) Mobile Communications credit rating (WBS structured rating (senior portion)) BBB-/Baa3 BB+/Ba1 Moody s s (Ba2) Long term rating BB/Ba2 BB-/Ba3 S&P (BB) B+/B Acquisition of JAPAN TELECOM Acquisition of Vodafone K.K. 47

48 48

49 Operation Kazuhiko Fujihara Senior Vice President, CFO, Director SOFTBANK MOBILE Corp. Senior Vice President & CFO, Director SOFTBANK BB Corp. Director SOFTBANK TELECOM Corp. 49

50 Overview of Major 3 Telecommunications Companies All 3 communications businesses achieved revenue increase YoY BB Infrastructure Fixed-line Telecommunications Mobile Communications (.1) Operating income EBITDA Operating income EBITDA Operating income 7/Q1 8/Q1 7/Q1 8/Q1 7/Q1 8/Q1 7/Q1 8/Q1 7/Q1 8/Q1 7/Q1 8/Q1 EBITDA 5

51 Broadband Infrastructure Business Broadband Infrastructure Business Fixed-line Telecommunications Business Mobile Communications Business 51

52 Operating Income, EBITDA (BB Business) Maintain trend of revenue increase through cost reductions <BB-1> Operating Income EBITDA Q Q FY6/Q1 FY7/Q1 FY8/Q1 Q Q FY6/Q1 FY7/Q1 FY8/Q1 52

53 Yahoo! BB ADSL Lines & ARPU <BB-2> (k lines) 6, 5, 4, 3, Number of ADSL lines are decreasing. Slight decrease in ARPU. 4,889 4,972 5,7 5,49 5,89 5,146 5,161 5,164 5,134 5,42 4,943 4,894,653 4,381 4,26 Number of Lines and Full Charged Users 4,436 4,462 4,474 4,534 4,575 4,524 4,45 4,423 4,34 4,261 4,127 Cumulative lines installed Full charged users (JPY) 5, 4, 3, Basic charge ARPU Modem rental revenue WLAN BB Phone BB Security Yahoo! ISP 4,283 2, 2, 1, 1, 5/Q1 6/Q1 7/Q1 8/Q1 5/Q1 6/Q1 7/Q1 8/Q1 *ARPU is based on user s payment. The impact of the modem rental business sale is not reflected. From F7/Q1 part of Yahoo ISP revenue recorded as basic charge (no impact on user s charge) 53

54 CAPEX (BB Business) CAPEX stabilized within range of depreciation and amortization <BB-3> 25 CAPEX and Depreciation & Amortization (Quarterly Trend) 1 CAPEX (Yearly Trend) 2 CAPEX Depreciation & amortization /Q1 8/Q1 (Forecast amount) Q1 Q1 4.7 FY24 FY25 FY26 FY27 FY28 54

55 Broadband Infrastructure Business Fixed-line Telecommunications Mobile Communications 55

56 Operating Income, EBITDA (Fixed-line Telecommunications Business) Achieved operating profitability due to the enhancement of corporate lines and efficient management Operating Income EBITDA <Fixed-1> Operating income/loss (full year) Q1 1.2(*) -.9 Q Q Q FY6/Q1 FY7/Q1 FY8/Q1 *FY6/Q1: includes reversal of JPY 2.5 billion for retirement benefits. FY6/Q1 FY7/Q1 FY8/Q1 56

57 Number of OTOKU Lines and ARPU <Fixed-2> Number of lines and ARPU improving due to enhancement of corporate lines (k lines) 1,6 1,4 Heisei Denden Large Corp. SME (SBTP) SME(excl. SBTP) Consumer Number of Lines 1,44 (JPY) 12, 1, ARPU Large Corp. Total 1,2 1, 8, 8 6, 6 4, 4 2 5/Q1 6/Q1 7/Q1 8/Q1 *SBTP SOFTBANK TELECOM PARTNERS 2, 5/Q1 6/Q1 7/Q1 8/Q1 57

58 CAPEX (Fixed-line Telecommunications Business) <Fixed-3> CAPEX stabilized within the range of depreciation and amortization 5 CAPEX and Depreciation & Amortization (Quarterly Trend) CAPEX (Yearly Trend) 4 CAPEX Depreciation and amortization months (Oct Mar) /Q1 8/Q Q1 (Forecast amount) 27.8 Q1 5.1 FY24 FY25 FY26 FY27 FY28 58

59 Broadband Infrastructure Business Fixed-line Telecommunications Mobile Communications 59

60 Operating Income (SB Consolidated, SBM Consolidated) Achieved revenue increase YoY. Favorable trend sustained. <Mobile-1> SB Consolidated Mobile Communications Segment SBM Consolidated months (May-Jun) Q Q FY6/Q1 FY7/Q1 FY8/Q1 Q Q FY6/Q1 FY7/Q1 FY8/Q1 6

61 EBITDA (SB Consolidated, SBM Consolidated) Achieved revenue increase YoY. Favorable trend sustained. <Mobile-2> SB Consolidated Mobile Communications Segment SBM Consolidated months (May-Jun) Q1 Q FY6/Q1 FY7/Q1 FY8/Q1 Q Q FY6/Q1 FY7/Q1 FY8/Q1 61

62 Quarterly Net Additions <Mobile-3> No.1 in Net additions for 14 consecutive months 1, <k lines> FY8/Q1 Net additions 526k <Items> Postpaid +59k Prepaid (64k) 2-2 5/Q /Q1 Vodafone /Q1 8/Q1 [FY] FY8/Q1 Net additions Others 57% (Ref) FY7/Q1 share in net additions 41% 62

63 Cumulative Subscribers, 3G Subscribers <Mobile-4> Number of cumulative and 3G subscribers experienced a significant growth after acquisition 2, 15, 1, 3G 2G e/o June 27 3G subscribers: 9,218k 3G ratio: 56.1% e/o June 28 Cumulative subscribers 19,112k e/o June 28 15,113k 3G subscribers: 15,113k 3G ratio: 79.1% <k lines> 5, e/o June 26 3G subscribers: 3,715k 3G ratio: 24.4% Jun Sep Dec Mar Jun Sep Dec Mar Jun Sep Dec Mar Jun Vodafone 63

64 Churn Rate <Mobile-5> 2.% Lower churn rate due to the penetration of installment sales Churn Rate (comp. to other operators SOFTBANK MOBILE NTT DoCoMo au 2.% 1.73% Churn Rate (3G Postpaid) SOFTBANK MOBILE SOFTBANK MOBILE (3G postpaid) 1.5% 1.46% 1.%.98% 1.% 1.7%.72%.% 6/Q1 7/Q1 8/Q1.% 6/Q1 7/Q1 8/Q1 64

65 Churn Rate & Upgrade Rate <Mobile-6> Upgrade rate improved significantly due to the penetration of installment sales Upgrade Rate Churn & Upgrade Rate Churn 3.% 1.6% 7/Q1 1.4% 7/ 2.% 1.99% 2.25% 1.2% 1.% 7/ 7/.8% 8/Q1 1.% 1.27%.6%.4%.2%.% 6/Q1 7/Q1 8/Q1.%.% 1.% 2.% 3.% 4.% Upgrade rate 65

66 Installment Sales Receivables and Super Bonus Ratio <Mobile-7> Maintain high Super Bonus subscription ratio Super Bonus Subscription Ratio Installment Sales Receivables Balance 1% 8% 71% 77% 86% 87% 86% 83% 5 88% 4 Installment sales receivables procurement % % 2% % 1% 7/Q1 8/Q1 2 1 *Ratio of installment sales subscribers to total postpaid subscribers (new/upgrade) Second securitization 64.8 First securitization Fifth Fourth securitization securitization 45.3 Third 56.1 securitization / 7/Q1 8/Q1 2,231 66

67 ARPU <Mobile-8> Voice ARPU: decreasing due to expansion of the Super Bonus special discounts Data ARPU: Improved due to the growth of 3G rate and the end of campaign (JPY) 7, 6, 5,87 5,59 5, 5, 4,18 4, 3, 4,54 4,23 3,59 2,53 Voice 2, 1, 1,33 1,35 1,41 1,65 Data 5/Q1 6/Q1 7/Q1 8/Q1 67

68 <Reference> ARPU + Installment Payments <Mobile-9> ARPU on the previous page & installment payment trend levels out 7, (JPY) 6, 5,87 5,59 5,48 5,57 5, 48 1,39 Installment 4, 3, 4,54 4,23 3,59 2,53 Voice 2, 1, 1,33 1,35 1,41 1,65 Data 5/Q1 6/Q1 7/Q1 8/Q1 68

69 CAPEX (Mobile Communications Business) <Mobile-1> Executing efficient CAPEX 1 CAPEX and Depreciation & Amortization (Quarterly Trend) CAPEX 4 CAPEX (Yearly Trend) Depreciation & amortization 1 month (4/6) months (5/6 3/7) (Forecast amount) /Q1 8/Q1 Q1 Q FY26 FY27 FY28 69

70 This presentation contains forward-looking statements including statements regarding future events, future strategies or future performance of SOFTBANK CORP. that involves risks or uncertainties. In evaluating these statements, a recipient thereof should specifically consider various factors that could cause actual events or results to differ materially from those indicated, including without limitation; continuing decline in the general economic conditions, general market conditions, customer demand for products and services, increased competition, inherent risk in international operations and other important factors. 7