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R&D expenditures during fiscal 2011 totaled 880 million yen.

The major portion of R&D activities took place in the Mobile Communications, Broadband Infrastructure, and Fixed-line Telecommunications segments. The main items were as follows:

Mobile Communications segment

Research and development was carried out in the Mobile Communications segment, primarily related to telecommunications system upgrades.

Broadband Infrastructure segment

Research and development was carried out in the Broadband Infrastructure segment, primarily related to next-generation networks.

Fixed-line Telecommunications segment

Research was carried out in the Fixed-line Telecommunications segment, primarily into virtualization technology for server storage groups.

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ANNUAL REPORT 2011

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The SOFTBANK Group is committed to maintaining strong management and corporate governance.

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