

Net sales were 363,632 million yen, down 7,109 million yen (1.9%) year-on-year. Operating income totaled 18,968 million yen, a 15,628 million yen (467.9%) increase year-on-year. At the core company SOFTBANK TELECOM, revenue from the OTOKU Line direct connection fixed-line voice service continued to show steady growth, but the downward trend in revenue from existing voice services including MY LINE and from international telephone services continued. SOFTBANK TELECOM is pursuing increased management efficiency through initiatives including continuous fixed cost reductions, and with growth in the number of lines with high profitability like OTOKU Line and Ether Connect, operating income is growing by a wide margin.
SOFTBANK TELECOM continues to leverage its core OTOKU Line service to expand its corporate customer base. The number of OTOKU Line lines installed is increasing steadily and stood at 1,608,000 as of the fiscal year end, for an increase of 206,000 (14.7%) from the end of the previous year. Corporate customers constituted 77.6% of the total number of lines, and this figure continues to rise.
SOFTBANK TELECOM launched the White Line 24 discount service, which provides free domestic voice calls, 24 hours a day, between subscribers of SOFTBANK TELECOM's OTOKU Line service and SoftBank mobile phones (White Plan), in June 2008. SOFTBANK TELECOM also launched the White Office corporate FMC service, which enables mobile phones to be used as extension lines of fixed-line telephones, in March 2009. SOFTBANK TELECOM will keep working to enhance synergies with the Mobile Communications segment and further strengthen the corporate business.