Announcement Concerning Year-on-Year Earnings Results Comparison for the Fiscal Year Ended March 2010

SOFTBANK CORP. (hereafter “the Company”) announced the following earnings results comparison between FY2009 ended March 2010 (April 1, 2009 to March 31, 2010) and FY2008 ended March 2009 (April 1, 2008 to March 31, 2009, hereafter “the previous fiscal year;” “year-on-year”.)
This is to explain the difference with the earnings results of the previous fiscal year, as the Company did not announce a consolidated forecast on net sales, ordinary income, and net income for the fiscal year ended March 2010.

1. Comparison of earnings results of FY2009 and FY2010 (consolidated)

2. Factors of the earnings results' difference

For the consolidated results of operation for the fiscal year ended March 2010, consolidated net sales achieved 3.4% increase compared with the previous fiscal year, to JPY 2,763,406 million, with a 29.7% increase to JPY 465,871 million in operating income, a 51.1% increase JPY 340,997 million in ordinary income, and a 124.0% increase to JPY 96,716 million in net income.

(1) Net sales

Net sales totaled JPY 2,763,406 million, for a JPY 90,370 million (3.4%) year-on-year increase. This was mainly due to a JPY 138,555 million growth in sales at the Mobile Communications segment resulting from an increase in the number of mobile phone subscribers and increased handset shipments ^*1 . On the other hand, net sales declined by JPY 31,771 million at the Broadband Infrastructure segment due to a decline in the number of charged ADSL lines.

(2) Operating income

Operating income totaled JPY 465,871 million, for a JPY 106,749 million (29.7%) increase.
Cost of sales declined JPY 39,331 million (2.9%) year-on-year to JPY 1,326,571 million, mainly from a decrease in telecommunications equipment usage fees paid by the Mobile Communications and the Fixed-line Telecommunications segments and lower depreciation and amortization expenses in the Broadband Infrastructure segment. This decline was partially offset as the cost of sales for mobile handsets increased from the previous fiscal year in line with the increase in shipped handsets.
Selling, general and administrative expenses increased JPY 22,951 million (2.4%) year-on-year to JPY 970,963 million. This was because of an increase in sales commissions corresponding to growth in the number of mobile handsets sold ^*2 . However, expenses related to doubtful accounts (bad debt loss on doubtful accounts + provision for allowance for doubtful accounts) was lowered as its Mobile Communications segment benefited from the implementation of stricter credit screening.

(3) Ordinary income

Ordinary income totaled JPY 340,997 million, marking a JPY 115,335 million (51.1%) year-on-year increase. The main factors for the increase were a reduction in interest payments due to a decrease in interest-bearing debt, and an improvement in equity in losses under the equity method.

(4) Net income

Net income totaled JPY 96,716 million, for a JPY 53,543 million (124.0%) year-on-year increase. This was mainly due to an increase in ordinary income and a decrease in special loss.