Net sales were 1,562,891 million yen, down 67,961 million yen (4.2%) year-on-year. Operating income decreased by 3,180 million yen (1.8%) year-on-year to 171,390 million yen. The decrease in net sales was primarily a reflection of a decline in revenue from handset sales at SOFTBANK MOBILE, the segment's core company, on a decline in the number of handsets sold. However, telecom service revenue turned around to growth on a steady increase in the number of subscribers. The decline in mobile handset sales volume was caused by the economic slowdown, as well as the fact that competitors have followed SOFTBANK MOBILE's lead in introducing installment sales for handsets, resulting in longer handset tenure industry-wide. In addition, segment sales turned around to year-on-year growth in the fourth quarter.

A loss on additional entrustment of 75,000 million yen for debt assumption in relation to in-substance redemption before maturity, debt assumption, executed in the past for the outstanding bonds of SOFTBANK MOBILE was recorded.

Net Subscriber Additions by Operator^*2

Net subscriber additions (new subscribers minus cancellations) at SOFTBANK MOBILE for fiscal 2009 totaled 2,046,700, maintaining SOFTBANK MOBILE's No. 1 position on an annual basis with more than two million net additions for the second consecutive year. The number of SOFTBANK MOBILE subscribers totaled 20,632,900^*1 as of the fiscal year end, an 11.0% increase year-on-year, while aggregate market share rose 1.1 percentage points to 19.2%. The number of 3G subscribers totaled 18,653,600, representing more than 90% of total subscribers.

SOFTBANK MOBILE continues to promote the migration to 3G in advance of the scheduled termination of its 2G service on March 31, 2010.