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02 15-14 softbank results-q3
 

02 15-14 softbank results-q3

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    02 15-14 softbank results-q3 02 15-14 softbank results-q3 Presentation Transcript

    • Earnings Results for the Nine-month Period Ended December 31, 2013 February 12, 2014 SoftBank Corp.
    • ! Disclaimer This material was prepared based on information available and views held at the time it was made. Statements in this material that are not historical facts, including, without limitation, plans, forecasts and strategies are “forward-looking statements”. Forward-looking statements are by their nature subject to various risks and uncertainties, including, without limitation, a decline in general economic conditions, general market conditions, technological developments, changes in customer demand for products and services, increased competition, risks associated with international operations, and other important factors, each of which may cause actual results and future developments to differ materially from those expressed or implied in any forward-looking statement. With the passage of time, information in this material (including, without limitation, forward-looking statements) could be superseded or cease to be accurate. SoftBank Corp. disclaims any obligation or responsibility to update, revise or supplement any forward-looking statement or other information in any material or generally to any extent. Use of or reliance on the information in this material is at your own risk. Information contained herein regarding companies other than SoftBank Corp. and other companies of the SoftBank Group is quoted from public sources and others. SoftBank Corp. has neither verified nor is responsible for the accuracy of such information. Any statements made herein regarding Sprint Corporation (“Sprint”) are made by SoftBank solely in its capacity as an investor in Sprint. None of such statements are made on behalf of or attributable to Sprint. Any information contained herein regarding Sprint is subject to any and all subsequent disclosures made by Sprint on its own behalf. Neither Sprint nor SoftBank undertakes any obligation to update the information contained herein in connection with any subsequent disclosures made by Sprint, or to reflect any other subsequent circumstances or events. Nothing contained herein may be construed as an obligation on the part of Sprint to provide disclosures or guidance on its own behalf.
    • 20 years ago… !2
    • 1994 IPO !3
    • Net Sales Over JPY 6t 100x in 20 years JPY 60bn Mar. 1994 Mar. 2014 (Forecast) !4
    • EBIT
 (Operating Income) Over JPY 1t 300x in 20 years JPY Mar. 1994 3bn Mar. 2014 (Forecast) !5
    • Market Cap JPY 9t 50x in 20 years Approx. JPY 200bn at IPO 1994 1998 (Listed on the First Section of Tokyo Stock Exchange) 2014 (CY) (Source) S&P Capital IQ (Feb. 10, 2014) !6
    • Global Market Cap Ranking Rank Company JPY t 47 1 Apple 2 Google 40 3 Exxon Mobil 4 Microsoft 5 Berkshire Hathaway 6 General Electric 7 Johnson & Johnson 8 Nestlé 9 Roche Holding 10 Walmart 40 31 28 26 26 25 25 24 81 SoftBank 9 Global No. 81 (Source) S&P Capital IQ (Feb. 10, 2014) !7
    • Toward Further Growth !8
    • Consolidated Earnings Results !9
    • Highlights 1. Net sales JPY 4.6t (94% increase) 2. EBIT JPY 924.2bn (46% increase) 3. Net income JPY 488.2bn (58% increase) !10
    • 4.6t Net Sales (JPY t) 1.7t Sprint segment Record high 94% increase 2.9t 2.3t 0 2003 ’04 ’05 ’06 ’07 ’08 ’09 ’10 ’11 ’12 ’13 Q1-3 Q1-3 Q1-3 Q1-3 Q1-3 Q1-3 Q1-3 Q1-3 Q1-3 Q1-3 Q1-3 Japanese-GAAP IFRSs (FY) !11
    • 1.3t EBITDA (JPY bn) 0.2t Sprint segment 1.1t Record high for 10 consecutive periods 874.1 49% increase 0 2003 ’04 Q1-3 Q1-3 ’05 ’06 ’07 ’08 ’09 ’10 ’11 ’12 ’13 Q1-3 Q1-3 Q1-3 Q1-3 Q1-3 Q1-3 Q1-3 Q1-3 Q1-3 Japanese-GAAP IFRSs (FY) !12
    • 924.2 EBIT (JPY bn) Consolidated EBIT (Operating Income) One-time gains from making GungHo and WILLCOM subsidiaries 253.9 Record high for 8 consecutive periods 728.5 631.5 46% increase - 58.2 0 2003 ’04 ’05 ’06 ’07 ’08 ’09 ’10 ’11 ’12 ’13 Q1-3 Q1-3 Q1-3 Q1-3 Q1-3 Q1-3 Q1-3 Q1-3 Q1-3 Sprint segment Q1-3 Q1-3 Japanese-GAAP IFRSs (FY) !13
    • Net Income (JPY bn) 488.2 (Net income attributable to owners of the parent) Record high for 5 consecutive periods 308.8 58% increase 0 2003 ’04 Q1-3 Q1-3 ’05 Q1-3 ’06 Q1-3 ’07 Q1-3 ’08 Q1-3 Japanese-GAAP ’09 Q1-3 ’10 Q1-3 ’11 Q1-3 ’12 Q1-3 ’13 Q1-3 IFRSs (FY) !14
    • Summary of Consolidated Earnings Results (JPY bn) FY13/Q3 Change YoY 2,347.0 4,561.7 2,214.7 194% EBITDA 874.1 1,299.7 425.6 149% EBIT 631.5 924.2 292.7 146% 308.8 488.2 179.4 158% FY12/Q3 (Apr. - Dec. 2012) Net Sales (Apr. - Dec. 2013) (Operating Income) Net Income (Net income attributable to owners of the parent) !15
    • 4.6t Net Sales (JPY t) 3.4t 3.2t KDDI Toward No.1 0 2005 ’06 ’07 ’08 ’09 ’10 ’11 ’12 ’13 Q1-3 Q1-3 Q1-3 Q1-3 Q1-3 Q1-3 Q1-3 Q1-3 Q1-3 Japanese-GAAP IFRSs (FY) *Created by SoftBank Corp. based on respective companies' publicly available historical information !16
    • EBIT (JPY bn) 924.2 (Operating Income) 688.7 533.2 KDDI Toward No.1 0 2005 Q1-3 ’06 Q1-3 ’07 Q1-3 ’08 Q1-3 Japanese-GAAP ’09 Q1-3 ’10 Q1-3 ’11 Q1-3 ’12 Q1-3 ’13 Q1-3 IFRSs (FY) *Created by SoftBank Corp. based on respective companies' publicly available historical information !17
    • Net Income (JPY bn) 488.2 430.2 268.7 KDDI Toward No.1 0 2005 ’06 Q1-3 Q1-3 ’07 Q1-3 ’08 ’09 Q1-3 Q1-3 Japanese-GAAP ’10 Q1-3 ’11 ’12 ’13 Q1-3 Q1-3 Q1-3 IFRSs (FY) *Created by SoftBank Corp. based on respective companies' publicly available historical information !18
    • FY2013 Q1-3 Consolidated Earnings Results Rank Company EBIT Net Sales (Operating Income) Net Income 1 JPY 4.6t JPY 924.2bn JPY 488.2bn 2 JPY 3.4t JPY 688.7bn JPY 430.2bn 3 JPY 3.2t JPY 533.2bn JPY 268.7bn No.1 in all core KPIs *Created by SoftBank Corp. based on respective companies' publicly available information !19
    • Cash Flow FY12/Q3 (Apr. - Dec. 2012) Operating cash flow Free cash flow Decrease from acquisition of control over subsidiaries    (Sprint, GungHo, Supercell, etc.) Proceeds from settlement of foreign incl.    currency forward contract for acquisition of control of subsidiaries   CAPEX FY13/Q3 (JPY bn) (Apr. - Dec. 2013) 521.3 497.7 - 246.3 - 1,878.8 - 2.0 - 1,568.6 - +310.1 - 458.5 - 995.7 !20
    • Net Interest-bearing Debt/ EBITDA Multiple (times) 7 6.2x (Post Vodafone K.K. acquisition) 6 5 4 3.5x 3 Promptly returning to lower level 3.0x (Excluding Sprint segment) 2 1 0 At Peak ’07 ’08 ’09 ’10 ’11 ’12 ’13 Japanese-GAAP IFRSs (At the end of Dec. each year) EBITDA: actual EBITDA of Q1-Q3 of each year / 3 x 4 *EBITDA for 2013 = (Q1-3 actual EBITDA of domestic business / 3 x 4) + (Sprint’s EBITDA for full year 2013) !21
    • Domestic Business !22
    • “DOCOMO will launch iPhone” SoftBank facing crisis? (Source) Morning edition of Nihon Keizai Shimbun, Sept. 6, 2013 !23
    • (Pre-launch survey) Which operator do you want to buy a new iPhone from? 50% 23% 27% (Source) Publicly released materials from NEO MARKETING INC. (Sept. 18, 2013) Surveyed total 4,500 users (1,500 from each) age 15 and older in Japan from Sept. 13 to Sept. 17, 2013 !24
    • iPhone 5s and 5c Sales Share 30% 39% 31% (Source) Third-party report based on sales data from major electronics retail stores nationwide Cumulative sales from the launch of iPhone 5s and iPhone 5c to Feb. 7, 2014 !25
    • Annual Net Additions Ranking Rank 2008 2009 2010 2011 2012 2013 1 2 3 No.1 for 6 consecutive years *Created by SoftBank Corp. based on respective companies' publicly available historical information !26
    • Annual Net Additions(2013) 4.1mil EMOBILE WILLCOM 2.8mil 3.44mil No.1 net additions 1.19mil *Created by SoftBank Corp. based on respective companies' publicly available historical information !27
    • Subscribers 44.66mil 39.62mil *Created by SoftBank Corp. based on respective companies' publicly available historical information Subscribers for SoftBank Group include WILLCOM and EMOBILE 2006 '07 '08 '09 '10 '11 '12 (At ’13 Dec.the end of each year) !28
    • Subscribers Over 100mil Over 100mil in Japan & US 62.18mil 39.62mil 2006 '07 '08 '09 '10 '11 '12 *Created by SoftBank Corp. based on respective companies' publicly available historical information Subscribers for SoftBank Group include WILLCOM, EMOBILE and Sprint Sprint subscribers: ”Total End of Period Subscribers” (At ’13 Dec.the end of each year) !29
    • (JPY) 6,000 ARPU JPY 5,900 JPY 5,890 Steady trend 5,500 5,000 JPY 4,510 4,500 JPY 4,430 JPY 4,490 JPY 4,480 4,000 3,500 2008 ’09 ’10 Japanese-GAAP ’11 ’12 ’13 IFRSs (FY) *Excluding communication modules. Created by SoftBank Corp. based on respective companies' publicly available historical information *Total voice ARPU and data ARPU for NTT DOCOMO’s FY2011 - FY2013 including smart ARPU *Total ARPU in personal segment for au’s FY2011 - 2013 including value ARPU *SoftBank ARPU includes Backup service package, etc. !30
    • Mobile Service Revenue (JPY bn) 1,540.2 Steady growth 1,174.0 31% increase * Including impact of JPY 284.9bn from newly consolidated subsidiaries from FY2013 (GungHo, eAccess, WILLCOM, Supercell) 2008 Q1-3 ’09 Q1-3 ’10 Q1-3 Japanese-GAAP ’11 Q1-3 ’12 Q1-3 ’13 Q1-3 IFRSs (FY) * FY2008 - 2011: Telecom service revenue of SoftBank Mobile FY2012 - 2013: Service revenue of Mobile Communications segment !31
    • Mobile Service Revenue Growth Rate +31% SoftBank +14% China Mobile +8% Verizon +4% AT&T NTT DOCOMO - 4% 0% Global No.1 Companies with market cap of more than JPY 3t as of Feb. 10, 2014 *Created by SoftBank Corp. based on respective companies' publicly available information, YTD FY2013  Consolidated results for China Mobile !32
    • Mobile EBITDA Margin 55% 51% Significant improvement 45% 35% 35% 27% 25% 2003 ’04 Q1-3 Q1-3 ’05 Q1-3 ’06 Q1-3 ’07 Q1-3 ’08 Q1-3 Japanese-GAAP ’09 Q1-3 ’10 Q1-3 ’11 Q1-3 ’12 Q1-3 ’13 (FY) Q1-3 IFRSs *FY2006 - 2011: Mobile Communications business EBITDA / Telecom service revenue of SoftBank Mobile FY2012 - 2013: Mobile Communications business EBITDA / Service revenue of Mobile Communications segment !33
    • Mobile EBITDA Margin 51% SoftBank 50% Verizon 46% NTT DOCOMO 41% AT&T 40% China Mobile 34% Bharti Airtel T-Mobile 15% 27% Global No.1 *Created by SoftBank Corp. based on respective companies’ publicly available information. YTD 2013 Mobile EBITDA Margin = Mobile EBITDA / mobile service revenue Consolidated results for China Mobile !34
    • Mobile EBIT 514.6 (Operating Income) (JPY bn) 419.3 9x after Vodafone K.K. acquisition 23% increase YoY * Including impact of JPY 56.0bn from newly consolidated subsidiaries from FY2013 (GungHo, eAccess, WILLCOM, Supercell) 57.2 0 2003 ’04 Q1-3 Q1-3 ’05 Q1-3 ’06 Q1-3 ’07 Q1-3 ’08 Q1-3 Japanese-GAAP ’09 Q1-3 ’10 Q1-3 ’11 Q1-3 ’12 Q1-3 ’13 Q1-3 IFRSs (FY) * FY2006 - 2011: Operating income of Mobile Communications business FY2012 - 2013: Segment income of Mobile Communications business !35
    • Mobile EBIT Growth Rate +23% SoftBank +19% Verizon +8% AT&T NTT DOCOMO China Mobile Global No.1 - 2% - 3% 0% *Companies with market cap more than JPY 3t as of Feb. 10, 2014 Created by SoftBank Corp. based on respective companies' publicly available information, YTD FY2013 Consolidated results for China Mobile !36
    • Annual Net Additions (2013) Mobile EBIT (Operating Income) (JPY bn) 514.6 4.1mil 2.8mil 1.19mil ’03 ’04 ’05 ’06 ’07 ’08 ’09 ’10 ’11 ’12 ’13 (FY) Q1-3 Q1-3 Q1-3 Q1-3 Q1-3 Q1-3 Q1-3 Q1-3 Q1-3 Q1-3 Q1-3 Overcame the purported crisis !37
    • No.1 Android Handset Sales Share (New Additions) 70% on Android 47% 35% 35% 18% 0% Jan. 2013 Jan. 2014 (Source) Third-party report based on sales data from major electronics retail stores nationwide Share of the total units of newly sold Android handsets by NTT DOCOMO, au, SoftBank, EMOBILE, and WILLCOM !38
    • Broadband Subscribers (Japan) (mil) 160 BWA 120 LTE Mobile dominates broadband Mobile 80 40 CATV ADSL FTTH 0 2011 ’12 ’13 ’14 ’15 ’16 ’17 ’18 (Forecast) Fixed-line (at the end of Mar. each year) (Source) Created by SoftBank Corp. based on a report issued by MM Research Institute (Nov. 27, 2013) !39
    • New Flat-rate Plan S Pack M Pack L Pack Domestic voice calls within 3 min/ up to 50 times/month calls within 5 min/ up to 1,000 times/month Data 2GB 7GB 15GB Basic monthly charge JPY 5,980 JPY 6,980 JPY 9,980 Revolutionary price plan for the VoLTE era *Dedicated monthly charge (JPY 980/month *with two-year contract), S! Basic Pack (JPY 300/month) charged separately *Additional charges if domestic voice allowance is exceeded: JPY 30/30 seconds *Additional charges if data allowance is exceeded: JPY 250/100MB for S Pack, JPY 125/100MB for M Pack, JPY 100/100MB for L Pack *All charges are pre-tax !40
    • Further Development of Corporate Market !41
    • Over 210k iPhone Corporate Customers companies ※紫ロゴは原則使用しないでください。 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2008 2009 2010 2011 2012 2013 (FY) !42
    • Over 100k iPad Corporate Customers companies Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2010 2011 2012 2013 (FY) *Customers with Wi-Fi + cellular model !43
    • Google Apps for Business Cumulative Number of IDs Q1 Q2 Q3 2011 2011 Q4 Q1 Q2 Q3 2012 Q4 Over Q1 Q2 2013 800k IDs Global No.1 Q3 (FY) *Global No.1: based on actual sales of Google Apps for Business from Jan. 2012 to Dec. 2012 !44
    • * (Super O2O Solution “ULTRA”) *Online to Offline !45
    • (Super O2O Solution “ULTRA”) Web Advertisement Coupons Physical Stores ※紫ロゴは原則使用しないでください。 今すぐ使える 店頭で使える お店で使える クーポン配布中! クーポン配信中! クーポン配布中! 今すぐ使える クーポン配信中! Promote store visits via smartphones !46
    • Rapid deployment !47
    • Number of Registrations via Super O2O Solution “ULTRA” Over 70k in 2 weeks Campaign launched 2 weeks later !48
    • Promotion Cost per Customer 30% decrease in promotion cost Other online  measures Super O2O Solution “ULTRA” !49
    • Case Study: Aeon Super O2O Solution “Ultra” Digital Signage Store Coupon Aeon Wi-Fi WAON App Totte! info Create new shopping experience with smartphones !50
    • Network !51
    • Smartphone Call Connectivity Rate 99% 99.1% 98.4% 98% 97.8% No.1 call connectivity 97% July 24, 2012 Feb. 4, 2014 *Nationwide survey by Ipsos K.K. Call connection rate of smartphones Actual connection rate on calls made to 16,900 smartphone users (SoftBank: 6,500 users, NTT DOCOMO: 5,000 users, au: 5,400 users) !52
    • Smartphone Data Connectivity Rate 99% 98.5% 97% 97.0% 96.8% No.1 data connectivity 95% 93% Jan. 13, 2013 Feb. 9, 2014 *Statistics analyzed by Agoop Corp. Platinum band-compatible smartphone data connection: total 120,000 platinum band-compatible smartphones (40,000 for each operator) were randomly selected for analysis. In analysis, data was collected through the disaster warning app (by Yahoo Japan) and Ramen Checker app (by Agoop) !53
    • Data Connectivity Rate by Landmarks Stations 100% 98.9% 98.0% 96.8% 98% 96% Jan. 13, 2013 Feb. 9, 2014 Department Stores 98.8% 97.9% 97.6% 98% 96% Jan. 13, 2013 100% Jan. 2013 Feb. 9, 2014 Diners / Fast Food 98% 96% 98.9% 97.9% 97.1% Feb. 9, 2014 Electronics Retail Stores 98.9% 97.8% 97.1% 98% 96% Jan. 13, 2013 Feb. 9, 2014 98.8% 97.8% 97.1% 98% 96% Jan. 13, 2013 100% Feb. 9, 2014 Convenience Stores 98.8% 97.7% 96.9% 98% 96% 94% Jan. 13, 2013 Feb. 9, 2014 Hotels 99% 98.7% 97.5% 97.0% 97% 95% 94% Shopping Malls 100% 94% 94% 94% 100% 98.2% 97.4% 95.9% 97% 94% 94% 100% Universities 100% Jan. 13, 2013 99% 97% Feb. 9, 2014 Leisure Facilities 98.6% 97.3% 96.9% 95% Jan. 13, 2013 Feb. 9, 2014 Jan. 13, 2013 Feb. 9, 2014 *Statistics analyzed by Agoop Corp. Platinum band-compatible smartphone data connection In analysis, data was collected through the disaster warning app (by Yahoo Japan) and Ramen Checker app (by Agoop) !54
    • Data Connectivity Rate by Landmarks Golf Courses 99% Beaches 100% 97.3% 96.1% 95.4% 96% 98.3% 97.6% 96.9% 95% 99% 92% Ski Resorts (on weekends and holidays) 96.0% 94.6% 93.9% 93% Mar. 10, 2013 Feb. 9, 2014 Expressway rest area 100% 98% 99.0% 97.6% 97.1% 100% Feb. 9, 2014 Dec. 1, 2013 Feb. 9, 2014 Roadside Stations 98.7% 97.5% 96.8% 96% 92% 96% Jan. 13, 2013 Jan. 13, 2013 Feb. 9, 2014 Jan. 13, 2013 Feb. 9, 2014 Toward No.1 in connectivity *Statistics analyzed by Agoop Corp. Platinum band-compatible smartphone data connection In analysis, data was collected through the disaster warning app (by Yahoo Japan) and Ramen Checker app (by Agoop) !55
    • Consolidated CAPEX (Japan) 779.4 (JPY bn) eAccess WCP WILLCOM CAPEX ahead of schedule 750.0 110.6 668.8 550.0 500.7 450.0 407.4 2010 ’11 ’12 (Japanese-GAAP) ’13 ’14 Plan (IFRSs) ’15 (FY) *FY2012 excludes FUKUOKA YAHUOKU DOME related CAPEX *Excluding rental handsets for corporate customers acquired by SoftBank Telecom *Excluding Sprint CAPEX WCP: Wireless City Planning !56
    • Internet Business !57
    • Yahoo Japan EBIT 147.1 (Operating Income) (JPY bn) 135.4 Record profit 9% increase 2002 ’03 ’04 ’05 ’06 ’07 ’08 ’09 ’10 ’11 ’12 ’13 Q1-3 Q1-3 Q1-3 Q1-3 Q1-3 Q1-3 Q1-3 Q1-3 Q1-3 Q1-3 Q1-3 Q1-3 (FY) *Yahoo Japan Corporation’s operating income(Japanese-GAAP) !58
    • Number of Stores 110k (at the end of Dec. 2013) (Yahoo! Shopping) 3x more than Rakuten’s 40k (Rakuten) 20k (Yahoo! Shopping) (as of “e-Commerce Revolution” announcement) ’96 ’97 ’98 ’99 ’00 ’01 ’02 ’03 ’04 ’05 ’06 ’07 ’08 ’09 ’10 ’11 ’12 ’13 (CY) (Source) Created by SoftBank Corp. based on respective companies' publicly available historical information (at the end of Sept. each year) * 110k: sum of existing shopping stores and pre-applications (Cumulative as of Dec. 31, 2013) * Number of pre-applications and the actual number of stores may differ !59
    • Transaction Volume Growth Rate 5 6% + % (Yahoo! Shopping) 10% 8% 4% 10% + (Yahuoku!) 6% 2% 4% 0% 2% -2% Jan. 2013 0% Dec. 2013 2012/Q3 ′13/Q3 Increasing transaction volume *Transaction volume growth rate: monthly base for Yahoo! Shopping, quarterly base for Yahuoku! !60
    • Online Shopping Market (JPY t) JPY 58t Becoming the world’s largest market JPY 30t JPY 26t JPY 20t ’2008 ’09 ’10 ’11 ’12 ’13 ’14 ’15 ’16 (CY) Forecast (Source) China: publicly released materials from iResearch (Jan. 25, 2013) RMB 1.00 = JPY 16.1 US: publicly released materials from comScore (Nov. 8, 2013) USD 1.00 = JPY 100 Forecast for US from 2013 onward: created by SoftBank Corp. based on CAGR from 2007 to 2012 Forecasts applied from 2013 onward for US and from 2012 onward for China !61
    • Transaction Volume / Day (JPY bn) 600 (on the busiest day in a year for online shopping) (Singles’ Day) JPY 560bn 3x 400 larger than US (Cyber Monday) JPY 170bn 200 (Source) Created by SoftBank Corp. based on publicly released materials from Comscore, iResearch, Alibaba Group USD 1.00 = JPY 100 RMB 1.00 = JPY 16.1 China: Singles’ Day (Nov. 11), US: Cyber Monday (first Monday after Thanksgiving Day) 0 2009 ’10 ’11 ’12 ’13 (CY) !62
    • Net Income JPY 216.7bn (After Tax) 9x YoY growth JPY 24.8bn 2008 ’09 ’10 ’11 ’12 ’13 Jan. - Sept. Jan. - Sept. Jan. - Sept. Jan. - Sept. Jan. - Sept. Jan. - Sept. (FY) (Source) Created by SoftBank Corp. based on disclosed material by Yahoo! Inc. USD 1.00 = JPY 100 Net income attributable to Alibaba Group !63
    • Net Income (After Tax) 250 (JPY bn) JPY 216.7bn 200 Outpaced Amazon by far 150 100 50 JPY 3.4bn (market cap: JPY 17t) 0 -50 2008 ’09 ’10 ’11 ’12 ’13 Jan. - Sept. Jan. - Sept. Jan. - Sept. Jan. - Sept. Jan. - Sept. Jan. - Sept. (Source) Created by SoftBank Corp. based on disclosed material by Yahoo! Inc. USD1.00 = JPY 100 Net income attributable to Alibaba Group Amazon.com: created by SoftBank Corp. based on publicly available historical information !64
    • Over 24mil Puzzle & Dragons App Downloads (Japan) Continued growth (Hit 3mil mark overseas) Apr. July 2012 Oct. Jan. Apr. July 2013 Oct. Jan. 2014 !65
    • GungHo EBIT JPY 91.2bn (Operating Income) EBIT (Operating income) 10x YoY JPY 9.3bn 2007 ’08 ’09 ’10 ’11 ’12 ’13 (FY) * GungHo Online Entertainment, Inc.’s operating income(Japanese-GAAP) !66
    • Apps on Google Play: Global Revenue Ranking (by publisher) Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec. 1 2 King.com 3 4 King.com King.com King.com Global No.1 for 11 months straight (Source) Created by SoftBank Corp. based on App Annie Index: Games “Top Publisher by Monthly Game Revenue” (Android February - December 2013) !67
    • Apps on App Store: Global Revenue Ranking (by publisher) Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec. King.com King.com King.com King.com King.com King.com 1 2 3 4 Electronic Arts Electronic Arts King.com King.com King.com King.com King.com Electronic Arts Electronic Arts Electronic Arts Electronic Arts Electronic Arts Electronic Arts Electronic Arts Electronic Arts Electronic Arts Global No.1 for 11 months straight (Source) Created by SoftBank Corp. based on App Annie Index: Games “Top Publisher by Monthly Game Revenue” (iOS February - December 2013) !68
    • Top Grossing Games on Google Play Global Ranking Oct. 1 2 3 4 9 Nov. Dec. Puzzle & Dragons Puzzle & Dragons Puzzle & Dragons Candy Crush Saga Candy Crush Saga Candy Crush Saga 몬스터 길들이기 for Kakao 몬스터 길들이기 for Kakao Clash of Clans 모두의마블 for Kakao Clash of Clans 몬스터 길들이기 for Kakao Clash of Clans (Launched on Oct. 7) Steady ascent (Source) Created by SoftBank Corp. based on App Annie Index: Games “Top Game Apps by Monthly Game Revenue” (Google Play October - December 2013) !69
    • (Wandoujia) Leading mobile content search engine in China Largest shareholder !70
    • Smartphone Share in China by OS (2013) Others iOS Android dominates smartphones in China Android 88% (Source) Created by SoftBank Corp. based on report by IDC (Sept. 25, 2013) “China Quarterly Mobile Phone Tracker, 2Q 2013” !71
    • App Distribution Channel (Android) Others 21% More than 70% operated by independent channels Google Play 6% Independent 73% (Source) umeng Analytics Platform “UMENG Insight Report 2013 First Half Overview” (Sept. 2013) !72
    • Installation Penetration (penetration rate in newly shipped Android phones) over Increasing popularity 50% (Source) Report by Wandoujia (Jan. 13, 2014) Installation penetration to daily Android phone shipments in China !73
    • User Base Over 300mil Rapid growth Apr. 2012 Jan. 2014 !74
    • !75
    • Service Revenue USD 28.6bn (Sprint Platform) Steady growth 6% increase USD 27.1bn 2009 ’10 ’11 ’12 ’13 (FY) * Combined consolidated U.S. GAAP results presented to be consistent with Sprint’s public disclosure and presentation of FY13 Q4 results !76
    • Consolidated Adjusted EBITDA Margin 35% 28% 16.9% 21% 14% Turned around 14.9% 7% 0% 2006 ’07 ’08 ’09 ’10 ’11 ’12 ’13 (FY) * Combined consolidated U.S. GAAP results presented to be consistent with Sprint’s public disclosure and presentation of FY13 Q4 results !77
    • (USD bn) Consolidated Adjusted EBITDA Steady growth 13% increase USD 5.4bn USD 4.8bn 2006 ’07 ’08 ’09 ’10 ’11 ’12 ’13 (FY) * Combined consolidated U.S. GAAP results presented to be consistent with Sprint’s public disclosure and presentation of FY13 Q4 results !78
    • (USD bn) Consolidated Adjusted EBITDA USD 6.5 Accelerating turnaround - 6.7bn USD 5.4bn 2006 ’07 ’08 ’09 ’10 ’11 ’12 ’13 ’14 (Forecast) (FY) * Combined consolidated U.S. GAAP results presented to be consistent with Sprint’s public disclosure and presentation of FY13 Q4 results !79
    • Consolidated CAPEX (USD bn) Approx. USD USD 2006 ’07 ’08 ’09 ’10 ’11 ’12 7.5bn ’13 8.0bn Continue network investments ’14 (FY) (Forecast) * Combined consolidated U.S. GAAP results presented to be consistent with Sprint’s public disclosure and presentation of FY13 Q4 results !80
    • Voice Block Rate Improved by 41% Pre-Network Vision Network Vision (Source) Sprint’s public disclosure and presentation of FY13 Q4 results. Reflects actual performance for markets with beyond 70% of voice/3G network modernization completed *Voice block rate = the number of attempted calls which were not completed due to network congestion / number of total calls attempted !81
    • Speed Performance 13x Legacy 3G Network Vision (4G LTE) (Source) Sprint’s public disclosure and presentation of FY13 Q4 results !82
    • Marcelo Claure Founder & CEO Appointed to Sprint’s Board of Directors !83
    • Completed Acquisition of Brightstar Corp. (Jan. 30, 2014) 70% (initially 57%) * Strengthen economies of scale *Ownership after exercising the warrant (over the five-year period) *See SoftBank Corp.’s press release dated Jan. 30, 2014 for more details !84
    • Forecast !85
    • FY2013 Consolidated Earnings Forecast Net sales over JPY 6t EBITDA over JPY 1.5t EBIT over JPY 1t (Operating income) (including one-time gains of JPY 253.9bn) !86
    • FY2014 Consolidated Earnings Forecast Net sales JPY 7t EBITDA JPY 2t EBIT JPY 1t (Operating income) (excluding one-time gains) !87
    • JPY 7t Net Sales Over JPY JPY 0 6t Double in 2 years 3.2t 2003 ’04 ’05 ’06 ’07 ’08 ’09 ’10 ’11 ’12 ’13 ’14 (FY) (Forecast) (Forecast) Japanese-GAAP IFRSs !88
    • EBIT
 Over JPY (Operating Income) 1t FY2014 JPY 1t (excluding one-time gains) 0 2003 ’04 ’05 ’06 ’07 ’08 ’09 ’10 ’11 ’12 ’13 (Forecast) Japanese-GAAP IFRSs (FY) * FY2013 forecast includes one-time gains of JPY 253.9bn !89
    • JPY 2t EBITDA Over JPY JPY 1.5t 1.1t Double in 2 years 0 2003 ’04 ’05 ’06 ’07 ’08 ’09 ’10 Japanese-GAAP ’11 ’12 ’13 ’14 (Forecast)(Forecast) IFRSs !90
    • Global EBITDA Ranking Rank Company Exxon Mobil 2 PetroChina 3 Apple 4 Royal Dutch Shell 5 Samsung 6 Gazprom 7 Chevron 8.2 6.6 6.4 6.3 5.8 5.6 5.5 … 1 JPY t 54 SoftBank 2 (Source) S&P Capital IQ (Feb. 10, 2014) FY14 EBITDA: created by SoftBank Corp. based on analysts’ consensus: SoftBank Corp.’s forecast for SoftBank Projected global No. 54 !91
    • Global EBITDA Ranking Rank Company Exxon Mobil 2 PetroChina 3 Apple 4 Royal Dutch Shell 5 Samsung 6 Gazprom 7 Chevron JPY t Rank 8.2 6.6 1 Apple 47 2 Google 40 6.4 6.3 5.8 5.6 5.5 3 Exxon Mobil 4 Microsoft 5 Berkshire Hathaway 6 General Electric 7 Johnson & Johnson 40 31 28 26 26 Company 54 SoftBank 2 81 SoftBank (Source) S&P Capital IQ (Feb. 10, 2014) FY14 EBITDA: created by SoftBank Corp. based on analysts’ consensus: SoftBank Corp.’s forecast for SoftBank JPY t ………… … 1 Global Market Cap Ranking (Source) S&P Capital IQ (Feb. 10, 2014) 9 !92
    • Summary 1. Japan: steady growth 2. US: accelerated turnaround On track to meet the forecast !93
    • Copyright (C) 2014 SoftBank Corp., All rights reserved. !94
    • 1. Adoption of IFRSs SoftBank Corp. has adopted the International Financial Reporting Standards (IFRSs) from the three-month period ended June 30, 2013 (transition date: April 1, 2012).
 The financial data for the three-month period ended June 30, 2012 (“YoY”) and the fiscal year ended March 31, 2013 are also presented based on IFRSs. Units in this material are rounded to the nearest unit. (Previously less than one unit rounded down). 2. Definition of terms etc. in this material. Free cash flow = cash flows from operating activities + cash flows from investing activities
 EBITDA (IFRS) = net sales – cost of sales – selling, general and administrative expenses + depreciation and amortization
 EBITDA (Japanese-GAAP) = operating income (loss) + depreciation + amortization of goodwill
 Interest-bearing debt (IFRS): corporate bonds and commercial paper + long-term borrowings + short-term borrowings + lease obligations + installment payables + preferred securities
 Interest-bearing debt (Japanese-GAAP): corporate bonds and commercial paper + long-term borrowings + short-term borrowings (excluding lease obligations)
 Net interest-bearing debt: interest-bearing debt - cash position
 ARPU (Average Revenue Per User per month) (rounded to the nearest JPY10)
 ARPU (excluding communication modules) = (data-related revenue (excluding communication modules) + basic monthly charge, voice-related revenues, etc. (excluding communication modules)) / number of active subscribers (excluding communication modules)
 Record high, record high revenue: since SoftBank Corp. applied consolidated accounting in 1995/3. 3. Trademarks and registered trademarks The names of other companies, other logos, product names, service names, brands, etc., mentioned in this material are registered trademarks or trademarks of SoftBank Corp. or the applicable companies. Unauthorized copying of this material and use of the information or the data in this material in whole or in part are not permitted. - Apple, the Apple logo, iPhone and iPad are trademarks of Apple. - The trademark “iPhone” is used with a license from Aiphone K.K.