Broadband Infrastructure Segment

Financial data

(Millions of yen)
	FY2009	FY2010	FY2011	EOQ in FY2011
	FY2009	FY2010	FY2011	Q1	Q2	Q3	Q4
Net sales	235,199	202,128	190,055	49,323	48,047	47,116	45,569
EBITDA^*1	70,954	65,232	61,023	16,298	15,607	15,236	13,882
EBITDA margin (%)^*2	30.2	32.3	32.1	33.0	32.5	32.3	30.5
Operating income	47,253	48,400	43,154	11,696	11,004	10,825	9,629
Operating margin (%)	20.1	23.9	22.7	23.7	22.9	23.0	21.1
Capital expenditure (acceptance basis)	14,590	9,343	16,851	3,319	3,295	5,076	5,161
Depreciation and amortization (excluding amortization of goodwill)	21,974	17,024	15,841	4,235	3,968	3,965	3,673

[Notes]

*1EBITDA = operating income (loss) + depreciation and amortization (including amortization of goodwill) + loss on disposal of fixed assets included in operating expenses.
*2EBITDA margin = EBITDA / net sales

Overall results

Net sales decreased by 12,073 million yen (6.0%) year on year to 190,055 million yen, and operating income decreased by 5,246 million yen (10.8%) year on year to 43,154 million yen.

The decrease in net sales was mainly because of the continued decreasing trend in revenue, on a decline in the number of charged lines^*3 for the ADSL service. The decrease in operating income was primarily due to a decrease in net sales and an increase in sales-related expenses in line with customer acquisition for Yahoo! BB hikari with FLET'S,^*4 a broadband connection service provided by SOFTBANK BB.

Net subscriber additions for Yahoo! BB hikari with FLET'S for fiscal 2011 totaled 695,000, bringing the cumulative number of contracts at the end of fiscal 2011 to 932,000. The number of installed lines^*5 for SOFTBANK BB's Yahoo! BB ADSL comprehensive broadband service at the end of fiscal 2011 totaled 3,150,000, marking a decline of 619,000 lines from the end of fiscal 2010. As a result, the number of broadband service users including installed lines for Yahoo! BB ADSL and contracts for Yahoo! BB hikari with FLET'S totaled 4,082,000.

[Notes]

*3Number of installed lines excluding customers whose basic monthly charge is free under promotion campaigns or other promotional initiatives.
*4A broadband connection service that combines the Internet connection service Yahoo! BB and the FLET'S HIKARI fiber-optic connection provided by NIPPON TELEGRAPH AND TELEPHONE EAST CORPORATION (“NTT East”) and NIPPON TELEGRAPH AND TELEPHONE WEST CORPORATION (“NTT West”). FLET'S and FLET'S HIKARI are registered trademarks of NTT East and NTT West.
*5Number of lines for which connection construction for ADSL line at the central office of NTT East or NTT West is complete.
*The content of this page is based on information included in the ANNUAL REPORT 2011.