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    02 17-13 results q3-1 02 17-13 results q3-1 Presentation Transcript

    • Earnings Resultsfor the Nine-month PeriodEnded December 31, 2012 January 31, 2013 SoftBank Corp.
    • Cautionary Statement Regarding Forward Looking StatementsThis document includes “forward-looking statements” within the meaning of the securities laws. The words “may,” “could,” “should,” “estimate,” “project,” “forecast,” “intend,” “expect,” “anticipate,” “believe,”“target,” “plan,” “providing guidance” and similar expressions are intended to identify information that is not historical in nature.This document contains forward-looking statements relating to the proposed transaction between Sprint Nextel Corporation (“Sprint”) and SoftBank Corp. (“SoftBank”) and its group companies, includingStarburst II, Inc. (“Starburst II”) pursuant to a merger agreement and the proposed acquisition by Sprint of Clearwire Communications LLC (“Clearwire”). All statements, other than historical facts, includingstatements regarding the expected timing of the closings of the transactions; the ability of the parties to complete the transactions considering the various closing conditions; the expected benefits of thetransaction, such as improved operations, enhanced revenues and cash flow, growth potential, market profile and financial strength; the competitive ability and position of SoftBank or Sprint; and anyassumptions underlying any of the foregoing, are forward-looking statements. Such statements are based upon current plans, estimates and expectations that are subject to risks, uncertainties andassumptions. The inclusion of such statements should not be regarded as a representation that such plans, estimates or expectations will be achieved. You should not place undue reliance on suchstatements. Important factors that could cause actual results to differ materially from such plans, estimates or expectations include, among others, that (1) one or more closing conditions to the transactionsmay not be satisfied or waived, on a timely basis or otherwise, including that a governmental entity may prohibit, delay or refuse to grant approval for the consummation of the transactions or that the requiredapproval by Sprint’s stockholders for the merger with SoftBank or by Clearwire’s stockholders for the acquisition by Sprint may not be obtained; (2) there may be a material adverse change of SoftBank orSprint or the respective businesses of SoftBank or Sprint may suffer as a result of uncertainty surrounding the transactions; (3) the transactions may involve unexpected costs, liabilities or delays; (4) the legalproceedings that have been initiated, as well as any additional legal proceedings that may be initiated, related to the transactions; and (5) other risk factors as detailed from time to time in Sprint’s, Starburst II’sand Clearwire’s reports filed with the Securities and Exchange Commission (“SEC”), including Sprint’s and Clearwire’s Annual Reports on Form 10-K for the year ended December 31, 2011, Sprint’s QuarterlyReport on Form 10-Q for the quarter ended September 30, 2012, Clearwire’s Quarterly Reports on Form 10-Q for the quarters ended March 31, 2013, June 30, 2012 and September 30, 2012 and the riskfactors set forth in the proxy statement/prospectus contained in Starburst II’s Registration Statement on Form S-4, which are (or will be, when filed) available on the SEC’s web site (www.sec.gov). There canbe no assurance that the transactions will be completed, or if completed, that such transactions will close within the anticipated time period or that the expected benefits of such transactions will be realized.All forward-looking statements contained in this document and the documents referenced herein are made only as of the date of the document in which they are contained, and none of Sprint, SoftBank orStarburst II undertakes any obligation to update any forward-looking statement to reflect events or circumstances after the date on which the statement is made or to reflect the occurrence of unanticipatedevents except as required by law. Readers are cautioned not to place undue reliance on any of these forward-looking statements.Additional Information and Where to Find ItIn connection with the proposed strategic combination, Starburst II plans to file with the SEC a Registration Statement on Form S-4 that will include a proxy statement of Sprint, and that also will constitute aprospectus of Starburst II. Sprint will mail the proxy statement/prospectus to its stockholders. INVESTORS ARE URGED TO READ THE PROXY STATEMENT/PROSPECTUS WHEN IT BECOMESAVAILABLE BECAUSE IT WILL CONTAIN IMPORTANT INFORMATION. The proxy statement/prospectus, as well as other filings containing information about Sprint, SoftBank and Starburst II, will beavailable, free of charge, from the SEC’s web site (www.sec.gov). Sprint’s SEC filings in connection with the transaction also may be obtained, free of charge, from Sprint’s web site (www.sprint.com) under thetab “About Us – Investors” and then under the heading “Documents and Filings – SEC Filings,” or by directing a request to Sprint, 6200 Sprint Parkway, Overland Park, Kansas 66251, Attention: ShareholderRelations or (913) 794-1091. Starburst II’s SEC filings in connection with the transaction (when filed) also may be obtained, free of charge, by directing a request to SoftBank, 1-9-1 Higashi-Shimbashi, Minato-ku, Tokyo 105-7303, Japan; telephone: +81.3.6889.2290; e-mail: ir@softbank.co.jp.Participants in the Merger SolicitationThe respective directors, executive officers and employees of Sprint, SoftBank, Starburst II and other persons may be deemed to be participants in the solicitation of proxies in respect of the transaction.Information regarding Sprint’s directors and executive officers is available in its Annual Report on Form 10-K for the year ended December 31, 2011. Other information regarding the interests of such individuals aswell as information regarding Starburst II’s directors and executive officers and prospective directors and executive officers will be available in the proxy statement/prospectus when it becomes available. Thesedocuments can be obtained free of charge from the sources indicated above. This communication shall not constitute an offer to sell or the solicitation of an offer to sell or the solicitation of an offer to buy anysecurities, nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction.No offer of securities shall be made except by means of a prospectus meeting the requirements of Section 10 of the Securities Act of 1933, as amended.
    • Highlights1. Exceeded JPY 600bn operating income (13% increase)2. Achieved 40 million lines target 2
    • ConsolidatedEarnings Results 3
    • Net Sales 2.5 2.4(JPY t) Record high for 3 consecutive periods 5% increase 3 Telecommunications businesses (Mobile Communications, Broadband Infrastructure, Fixed-line Telecommunications) Internet Culture (Yahoo Japan, etc.) Others0 2003 ’04 ’05 ’06 ’07 ’08 ’09 ’10 ’11 ’12 (FY) Q1-3 Q1-3 Q1-3 Q1-3 Q1-3 Q1-3 Q1-3 Q1-3 Q1-3 Q1-3 4
    • EBITDA 890.5(JPY bn) 776.0 Record high for 9 consecutive periods 15% increase 3 Telecommunications businesses (Mobile Communications, Broadband Infrastructure, Fixed-line Telecommunications) Internet Culture (Yahoo Japan, etc.) Others 0 2003 ’04 ’05 ’06 ’07 ’08 ’09 ’10 ’11 ’12 (FY) Q1-3 Q1-3 Q1-3 Q1-3 Q1-3 Q1-3 Q1-3 Q1-3 Q1-3 Q1-3 5
    • Operating Income 600.1(JPY bn) 532.7 Surpassed JPY600 billion Record high for 8 consecutive periods 13% increase 3 Telecommunications businesses (Mobile Communications, Broadband Infrastructure, Fixed-line Telecommunications) Internet Culture (Yahoo Japan, etc.) Others 0 2003 ’04 ’05 ’06 ’07 ’08 ’09 ’10 ’11 ’12 (FY) Q1-3 Q1-3 Q1-3 Q1-3 Q1-3 Q1-3 Q1-3 Q1-3 Q1-3 Q1-3 6
    • Operating Income(JPY bn) NTT DOCOMO 702.1 600.1 SoftBank KDDI Closing in on 395.5 DOCOMO 0 *Created by SoftBank based on respective companies’ publicly 2005 ’06 ’07 ’08 ’09 ’10 ’11 ’12 (FY) available information. Q1-3 Q1-3 Q1-3 Q1-3 Q1-3 Q1-3 Q1-3 Q1-3 7
    • Operating Income Substantial Growth Rate (YoY) +13% growth +3% (6%) *April to December (9-month period)NTT DOCOMO KDDI SoftBank *Created by SoftBank based on respective companies’ publicly available information. 8
    • (%) Operating Margin25 24% SoftBank NTT DOCOMO20 21% No.1 profitability15 15% KDDI10 *Created by SoftBank based on respective companies’ publicly 2006 ’07 ’08 ’09 ’10 ’11 ’12 (FY) available information. Q1-3 Q1-3 Q1-3 Q1-3 Q1-3 Q1-3 Q1-3 9
    • (%) Operating Margin25 24% SoftBank20 20% AT&T 19% Verizon No.1 profitability15 *April to December (9-month period for Japanese companies) January to September (9-month period for US companies)10 *Created by SoftBank based on respective companies’ publicly 2006 ’07 ’08 ’09 ’10 ’11 ’12 (FY) available information. Q1-3 Q1-3 Q1-3 Q1-3 Q1-3 Q1-3 Q1-3 10
    • (%) Mobile EBITDA Margin55 52% SoftBank50 47% Verizon45 44% NTT DOCOMO40 41% 40% AT&T No.135 in both30 KDDI Japan & US *Created by SoftBank based on respective companies’ publicly available information. *April to March (for Japanese companies)25 January to December (for US companies) Mobile EBITDA Margin = Mobile EBITDA / Mobile Telecom Service Revenue 2005 ’06 ’07 ’08 ’09 ’10 ’11 ’12 (YTD) KDDI FY2012 data not shown due to reorganization of KDDI’s reportable segments. 11
    • Ordinary Income(JPY bn) 529.4 Record high for 443.9 4 consecutive periods 19% increase0 2003 ’04 ’05 ’06 ’07 ’08 ’09 ’10 ’11 ’12 (FY) Q1-3 Q1-3 Q1-3 Q1-3 Q1-3 Q1-3 Q1-3 Q1-3 Q1-3 Q1-3 12
    • Net Income(JPY bn) 250.0 17.1 235.3 44.7 Steady growth Impact from IPO of Renren Inc. and others Impact from sales of Yahoo! Inc. shares in US0 2003 ’04 ’05 ’06 ’07 ’08 ’09 ’10 ’11 ’12 (FY) Q1-3 Q1-3 Q1-3 Q1-3 Q1-3 Q1-3 Q1-3 Q1-3 Q1-3 Q1-3 13
    • Summary of Consolidated Earnings Results (JPY bn) FY11/Q3 FY12/Q3 Increment  YoY (Apr. - Dec. 2011) (Apr. - Dec. 2012) Sales 2,398.1 2,509.7 111.5 105% EBITDA 776.0 890.5 114.4 115% Operating Income 532.7 600.1 67.3 113% Ordinary Income 443.9 529.4 85.4 119% Net Income 250.0 235.3 (14.7) 94% 14
    • Operating Cash Flow(JPY bn) 595.3 525.9 507.4 Steady progress 469.1 270.7 57.2 2007 ’08 ’09 ’10 ’11 ’12 (FY) Q1-3 Q1-3 Q1-3 Q1-3 Q1-3 Q1-3 15
    • Cash Flow (JPY bn) FY11/Q3 FY12/Q3 (Apr. - Dec. 2011) (Apr. - Dec. 2012)Operating Cash Flow 507.4 595.3Free Cash Flow 236.7 (150.7) 1) Sales of Yahoo! Inc. shares +57.1 - 2) Investment in convertible bond of Sprint - (249.3) 3) CAPEX payment (357.6) (432.7) 16
    • (JPY t) Net Interest-bearing Debt Maintain 2.2 2.0 2.0 1.7 1.4 appropriate 0.86 level 0.7 Bridge financing related to 0.25 proposed acquisition of Sprint CB 0.61 (Press release from December 17, 2012) *Refer to the press release issued on December 17, 2012 2006 ’07 ’08 ’09 ’10 ’11 ’12 (CY) *Excluding lease obligations Dec. Dec. Dec. Dec. Dec. Dec. Dec. 17
    • (times) Net Debt/EBITDA Multiple 5.0 4.4x Maintain 4.0 appropriate 3.0 level 2.0 1.0 0.7x 0 *Excluding finance leases. 2006 ’07 ’08 ’09 ’10 ’11 ’12 (CY) Net interest-bearing debt for each period-end/EBITDA of respective period For FY2012, calculated 4/3 of EBITDA from Q1 to Q3. Dec. Dec. Dec. Dec. Dec. Dec. Dec. 18
    • (times) Net Debt/EBITDA Multiple 5.0 4.8x Maintain 4.0 appropriate 3.0 level 2.0 1.3x Including lease obligations 1.0 0 *Including finance leases. 2006 ’07 ’08 ’09 ’10 ’11 ’12 (CY) Net interest-bearing debt for each period-end/EBITDA of respective period For FY2012, calculated 4/3 of EBITDA from Q1 to Q3. Dec. Dec. Dec. Dec. Dec. Dec. Dec. 19
    • Sprint Acquisition (1) JPY 0.25t Facility A: Acquisition of Sprint CB (Drawdown in Dec. 2012)USD 20.1bn Facility B: (JPY1.65t) Acquisition of Sprint JPY 1.4t (Drawdown at the time of acquisition) Financing to complete acquisition is available SoftBank Bridge LoanInvestment *Refer to the press release issued on December 17, 2012. 20
    • 95 Sprint Acquisition (2)(JPY) USD-JPY Exchange Rate JPY 91 (Jan. 30, 2013) FX risk hedged 90 for full amount 85 Forward exchange rate Average JPY 82.2 80 10/15 Sprint acquisition announced *Final exchange rate will be determined on the Sprint acquisition closing date. 75 2012/10/1 11/1 12/1 2013/1/1 21
    • FY2012 Dividend PolicyDividend per Share FY11 FY12 (JPY) Interim ー 20 Year-end 40 20 (plan) Annual dividend 40 40 (plan)No change in dividend policy 22
    • Adoption of International Financial Reporting Standards (IFRS) along with Sprint acquisition (From FY2013/Q1) 23
    • Status ofBusiness in Japan 24
    • Subscribers 40.56m(m) Surpassed 40 million in Japan (Target announced Oct. 2010) 15.22m10m Apr. 2006 Dec. 2012 25
    • Net Additions No.1 in net (Apr. - Dec. 2012) 2.37m 1.71m additions0.86m NTT auDOCOMO (KDDI) SoftBank *Created by SoftBank based on respective companies’ publicly available information. 26
    • Annual Net Additions Ranking 2008 2009 2010 2011 201212 NTT DOCOMO NTT DOCOMO NTT DOCOMO NTT DOCOMO au (KDDI)3 au (KDDI) au (KDDI) au (KDDI) au (KDDI) NTT DOCOMO No.1 in net additions for 5 consecutive years *Created by SoftBank based on respective companies’ publicly available information. 27
    • Cumulative Sales of iPhone 520,000 (Indexed at October 1, 2012 = 100) Exceeded au (KDDI) SoftBank15,000 iPhone 510,000 5,000 au (KDDI) 100 0 Oct. 2012 11/1 Nov. 12/1 Dec. 1/1 Jan. 2013 *Survey on cumulative sales at major electronic retailers by external research company 28
    • (JPY) 9,000 ARPU 8,480 (FY01~12) 8,080 7,500 7,600 Unique increasing trend 6,000 NTT DOCOMO au (KDDI) 4,430 4,500 4,370 4,220 *Excluding communication modules. Created by SoftBank based on respective companies’ publicly available information. Communication ARPU for personal segment for au in FY2012. Total of voice ARPU and packet ARPU for DOCOMO’s FY12 excludes 3,000 smart ARPU 2001 ’02 ’03 ’04 ’05 ’06 ’07 ’08 ’09 ’10 ’11 ’12 (FY) (Q3) 29
    • Mobile Telecom Service Revenue(JPY bn) 1,174.9 Steady growth 1,080.1 956.4 766.5 778.6 844.7 9% increase 2007 ’08 ’09 ’10 ’11 ’12 (FY) Q1-3 Q1-3 Q1-3 Q1-3 Q1-3 Q1-3 30
    • Mobile Telecom Service Revenue Significant(JPY bn) 477.0 etc. growth in Voice revenue, 481.0 483.6 data 468.8 479.3 547.3 Data revenue +17% 697.8 596.5 475.4 375.8 299.2 219.2 2007 ’08 ’09 ’10 ’11 ’12 (FY) Q1-3 Q1-3 Q1-3 Q1-3 Q1-3 Q1-3 31
    • Mobile Service Revenue Growth Rate (YoY) +9% Exceptional momentum (2%) (4%)NTT DOCOMO au (KDDI) SoftBank *April to December (9-month period) *Created by SoftBank based on respective companies’ publicly available information. Communication ARPU of personal segment for au’s. 32
    • Mobile EBITDA Margin(%)55 52%50 Improved dramatically4540 38%35 (profitability 2x)30 27%25 2002 ’03 ’04 ’05 ’06 ’07 ’08 ’09 ’10 ’11 ’12 (FY) *Mobile EBITDA Margin = Mobile EBITDA/Mobile telecom service revenue (Q1-3) 33
    • Mobile EBITDA Margin SoftBank 52%China Mobile 49% Verizon 47% GlobalNTT DOCOMO 44% AT&T 40% TeliaSonera 29% No.1 *Mobile EBITDA Margin = Mobile EBITDA/Mobile telecom service revenue 15% Comparison limited to operators disclosing mobile telecom service revenue and mobile EBITDA. YTD 34
    • 7x Mobile Operating Income 389.9(JPY bn) 346.4 post-acquisition 57.2 2003 ’04 ’05 ’06 ’07 ’08 ’09 ’10 ’11 ’12 (FY) Q1-3 Q1-3 Q1-3 Q1-3 Q1-3 Q1-3 Q1-3 Q1-3 Q1-3 Q1-3 35
    • Comprehensive Winner Net Additions ARPU Telecom Service Revenue 2.37m (JPY) 9,000 JPY 8,480 +9% JPY 8,080 1.71m 7,500 JPY 7,600 6,000 NTT DOCOMO0.86m au (KDDI) 4,500 JPY 4,430 JPY 4,370 (2%) JPY 4,220 SoftBank (4%) 3,000 NTT au 2001 ’02 ’03 ’04 ’05 ’06 ’07 ’08 ’09 ’10 ’11 ’12 (FY) NTT au SoftBankDOCOMO SoftBank (Q3) DOCOMO (KDDI) (KDDI) *Apr. - Dec. FY12 for net additions. *ARPU excludes communication modules. Created by SoftBank based on *Communication ARPU of personal segment for au’s (mobile) FY12 Q1-3. 36 respective companies’ publicly available information. *Total of voice ARPU and packet ARPU for DOCOMO’s FY12. Excludes Smart ARPU. *Communication ARPU of personal segment for au’s FY12.
    • WILLCOM Subscribers 5.19m Record(m)5.04.5 high4.0 3.77m3.53.0 May 2009 Dec. 2010 Dec. 2012 *PHS+3G 37
    • Fixed-line Operating Income(JPY bn) 71.1 81.1 High profitability (increased 14% YoY) 0 (67.6) 2003 ’04 ’05 ’06 ’07 ’08 ’09 ’10 ’11 ’12 (FY) Q1-3 Q1-3 Q1-3 Q1-3 Q1-3 Q1-3 Q1-3 Q1-3 Q1-3 Q1-3 *Including Broadband Infrastructure business 38
    • Fixed-line Operating Income Growth RateSoftBank SB 14% British BT 5.3% Telecom AT&T    2.1% BCE    -5.4% Global NTT    -6.0% No.1 39 *SoftBank includes Broadband Infrastructure Business, while AT&T and BCE represents Wireline segment, and NTT represents Regional Communications segment. *Created by SoftBank based on respective companies’ publicly available information
    • No. of Acquired Google Apps for Business (cumulative) Global No.1 exceeds 400k in 2012 300k8kQ1 Q2 Q3 Q4 Q1 Q2 Q3 FY2012 * Global No.1: latest Google Apps for Business actual sales results in 2012 FY2011 40
    • Yahoo Japan Operating Income 135.4(JPY bn) 121.2 Record high since inception Accelerated profit growth 2002 ’03 ’04 ’05 ’06 ’07 ’08 ’09 ’10 ’11 ’12 (FY) Q1-3 Q1-3 Q1-3 Q1-3 Q1-3 Q1-3 Q1-3 Q1-3 Q1-3 Q1-3 Q1-3 41
    • Google Play Global Top Sales Ranking SoftBank’s voting rights 33.7%Rank  Company/Game Android1 GungHo Online Entertainment Inc. Puzzle & Dragons Global No.1 Japan No.1 on iPhone Next Floor 2 DragonFight for Kakao NHN 3 LINE POP SUNDAYTOZ 4 Anipang for Kakao PATISTUDIO 5 아이러브커피 for Kakao *Sales in December 2012, surveyed by AppAnnie 42
    • Device Sales/Brand Content Overcame hurdles,enhanced competitiveness 43
    • Tackle the Last Hurdle 44
    • Connect Anywhere 45
    • Network SatisfactionSpeed × Connectivity (voice & data) 46
    • Network SatisfactionSpeed × Connectivity (voice & data) 47
    • National Speed Survey by RBB Subscribers from each operator (Measurement Method) used the app to measure speed 10Mbps 15Mbps 20Mbps 5km DOCOMO au SoftBank Judged the fastest 5km (KDDI) operator(Source) RBB TODAY press release (Jan. 23, 2013)          Approx. 1.5m national samples Measured period:Oct. 1 - Dec. 31, 2012 Judged based on average speed (downlink) within a 5 km X 5 km area obtained for each of . the operators in the scope of comparison. 48
    • No. of Spots Counted as Fastest (iOS+Android) au NTT DOCOMO 942spots No.1 fastest spots 1,483spots SoftBank 5,721spots (Source) RBB TODAY survey (Jan. 23, 2013) 49
    • Average Speed (iOS+Android) 6.0Mbps 3.0Mbps 3.9Mbps FastestNTT DOCOMO au (KDDI) SoftBank (Source) RBB TODAY survey (Jan. 23, 2013) 50
    • Average LTE Speed (iOS) 11.5Mbps Approx. 2x au (KDDI) 6.2Mbpsau (KDDI) SoftBank (Source) RBB TODAY survey (Jan. 23, 2013) 51
    • Third-party LTE Survey Kanto survey (349 spots) 206 spots 152 spots Nation-wide landmarks (200 spots) 180 spots 126 spots Shinkansen reception (291 spots) 217 spots 103 spots Popular cities (300 spots) 242 spots 205 spotsSource: Kakaku.com iPhone 5 speed survey (Kanto 349 spots/ Nov. 8 - 20, 2012) ICT Research Institute, smartphone LTE speed survey at 97 Shinkansen stations ICT Research & Consulting, Smartphone LTE speed survey (all 97 Shinkansen stations/ 291 spots/ Dec. 19, 2012) (200 spots nation-wide/ Nov. 6, 2012) MM Research Institute, next-generation high-speed communication (4G) smartphone speed survey (300 spots nation-wide/ Dec. 13, 2012) 52
    • Network SatisfactionSpeed × Connectivity (voice & data) 53
    • Platinum Band 54
    • Video 55
    • Platinum Band (Base Platinum Band Base Stationsstations, k) 16k Target in FY2012 (submitted plan) 15 10 5 0 July Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. 2012 2013 56
    • Platinum Band (Base Platinum Band Base Stationsstations, k) 16k Exceeded 16k Target in FY2012 Achieved 2 months ahead (submitted plan) 15 of schedule 10 5 0 July Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. 2012 2013 57
    • CallConnection Rate 58
    • Call Connection RateUsers of different operators Research company’s(agreed to participate in the survey) calling system Call 130k call data / month 59
    • 99 Platinum Band (%) Call Connection Rate (Japan) SoftBank (iPhone) au (iPhone) 98.4% 98.3%98 98.0% Major NTT DOCOMO (Android) improvement 97.3%97 *Surveyed by IPSOS. Actual connection rate on calls made96 to unspecified users who agreed to participate in the survey. 2012/7/24 1/29 SoftBank: iPhone 4S and iPhone 5 users: 64,000 calls/month NTT DOCOMO: Android users: 44,000 calls/month au: iPhone 4S and iPhone 5 users: 24,000 calls/month 60
    • Tokai Platinum BandCall Connection 100 (%) Rate Major SoftBank 99.2% improvement 99 NTT DOCOMO 98.5% au (KDDI) 98.1% 98 Kansai Kanto (%)100 99 (%) 97 SoftBank 7/24 1/29 SoftBank 98.2% 99 98.9% 98.1% 98 au (KDDI) au (KDDI) NTT 98.2% DOCOMO 98 97.6% NTT DOCOMO 97 98.0% 97 *Surveyed by IPSOS. Actual connection rate on calls made to unspecified users who agreed to participate in the survey. 96 SoftBank: iPhone 4S and iPhone 5 users. 7/24 1/29 NTT DOCOMO:Android smartphone users. au: iPhone 4S and iPhone 5 users 96 (Kanto) SoftBank: 26,400 calls/ month, NTT DOCOMO: 21,200 calls/ month, au: 9,200 calls/ month 61 7/24 1/29 (Tokai) SoftBank: 8,400 calls/ month, NTT DOCOMO: 4,400 calls/ month, au: 2,800 calls/ month (Kansai) SoftBank: 14,000 calls/ month, NTT DOCOMO: 8,800 calls/ month, au: 6,000 calls/ month
    • DataConnection Rate 62
    • Data Connection RateUsers agreed to provide data to the app (Disaster warning app, etc.) Data communication log (excl. personal info) Data source: Yahoo Japan Corporation Analyze approx. 30m data communication logs per month 63
    • Platinum Band Data Connection Rate(%) (Nation-wide Platinum Band smartphones)98 97.3% SoftBank97 96.9%96 NTT DOCOMO au (KDDI) 95.9% No.1 rate data connection95 *Data source: Yahoo Japan Corporation Data aggregated through the disaster warning app,94 etc. provided by Yahoo Japan with users’ approval. Jan. 11 Jan. 29 Use approx. 30m communication logs/month 64
    • (%) Hokkaido (%) Tohoku (%) Hokuriku Platinum Band100 99 100 SoftBank Data Connection 98.6% 98.0% NTTドコモ 97.2% 98.4%97 96.7% 95.7% 97 98 98.0% Rate au 97.0% No.1 95.6%94 95 96 1/11 1/29 1/11 1/29 1/11 1/29 Kanto Tokai Tokai Kansai(%) (%) (%)98 98 98 97.4% 96.9% data 97.2% 97.1% 95.9% 96.7% 96.8% 95.9%97 97 95 95.7% connection95 1/11 1/29 95 1/11 1/29 92 1/11 1/29 rate(%)100 Chugoku (%) 100 Shikoku (%) 99 Kyushu 6 regions 99.1% 98.3% 96.9% 97.5% *Data source: Yahoo Japan Corporation 97.4% 95.8% 95.6% Data aggregated through the disaster approval.app, etc. warning96 96 95.7% 95 provided by Yahoo Japan with users’ 95.3% Use approx. 30m communication logs/month92 1/11 1/29 92 1/11 1/29 90 1/11 1/29 65
    • 孫正義 @masasonOne day we will have a betternetwork than DOCOMO.It will take some time but my pridewill not allow me to fail. Sept. 23, 2010 - 14:34 66
    • We are not satisfied yet! 67
    • Platinum Band (Base Platinum Band Base Stationsstations, k) 40 Submitted plan to MIC 36k 30 Accelerated construction 20 Jan. 2013 exceeds16k 10 0July Mar. Mar. Mar. 2012 2013 2014 2015 68
    • 1.7GHz made LTE compatible (Coming soon)iPhone 5 iPad mini iPad with Retina Display 69
    • Connect Anywhere with SoftBank 70
    • FY2012 (Forecast)Domestic Consolidated Operating Income Exceed JPY 700 billion (USD 7.7bn) 71
    • FY2013 (Forecast)Domestic Consolidated Operating Income (Japan-GAAP) JPY 800 billion (USD 8.8bn) 72
    • Operating Income(JPY bn) NTT DOCOMO (Japan) 820.0 800.0 SoftBank (USD 8.8bn) KDDI 505.0 Stable growth *Created by SoftBank based on respective companies’ publicly 0 available information. 2005 ’06 ’07 ’08 ’09 ’10 ’11 ’12 ’13 (FY) (forecast) 73
    • FY2013 (Forecast)Consolidated Operating Income Including Overseas Business (IFRS) Approx.JPY 700 billion (USD 7.7bn) 74
    • FY2014 (Forecast)Consolidated Operating Income Including Overseas Business (IFRS) Record High Profit 75
    • Next challenge is in the US 76
    • 77
    • + 1. Smartphones 2. Network 3. Turnaround track recordSynergies enhance competitiveness 78
    • +(m) Number of Smartphones Sold 28.8 26.9 Economies of scale 21.7 with No. 3 position in Japan & US 8.8 5.6 Verizon AT&T SoftBank NTT KDDI *Verizon & AT&T: FY2012 results. *Others: FY2011 results. Sprint DOCOMO 79
    • +(USD bn) Mobile CAPEX 20.6 Economies of scale 13.3 with No. 2 position 10.8 10.1 8.9 8.4 3.5 *SoftBank + Sprint: FY2012 forecast China Mobile SoftBank AT&T Vodafone Verizon NTT KDDI Verizon: FY2012 actual results Sprint (Consolidated) DOCOMO Others: FY2011 results *Created by SoftBank based on respective companies’ publicly available information. 80
    • 92.3bn 429.2bn 5.19m 3.77m $76.3bn -105.8bn2000 ’11 2002 ‘11 (FY) (FY) May 2009 2012年9月 Dec. 2012 Proven turnaround track record 81
    • Mobile EBITDA Margin (%) (%) 60 52% 60 Turnaround 40 38% 27% 40 36% begins 20 20 16% 2002 ’03 ’04 ’05 ’06 ’07 ’08 ’09 ’10 ’11 ’12 (FY) 2006 ’07 ’08 ’09 ’10 ’11 ’12 (FY) (Q1-3) (YTD)*Mobile EBITDA Margin = Mobile EBITDA/Mobile Telecom Service Revenue 82
    • Promote Mutual Understanding 83
    • 84
    • Summary1. Domestic operating income: JPY 800 billion (USD 8.8bn) (FY2013)2. Connect anywhere3. Drive growth with overseas opportunities 85
    • 86
    • 1. Application of accounting standard for disclosure on segments The “Accounting Standard for Disclosures about Segments of an Enterprise and Related Information” and related “Guidance on the Accounting Standard for Disclosures about Segments of an Enterprise and Related Information” are applied from FY2010/Q1. Financial results for 2010/3 are shown based on the new standard for comparison purposes only and have neither been audited nor reviewed by our independent auditors. All financial information for 2010/3 presented herein based on the new standard are subject to our audited and reviewed financial reports for the relevant corresponding periods.2. Definition of terms etc. in this material. Free cash flow (FCF): cash flows from operating activities + cash flows from investing activities. EBITDA: operating income (loss) + depreciation and amortization (including amortization of goodwill). Net interest-bearing debt: interest-bearing debt - cash position Interest-bearing debt: short-term borrowings + commercial paper + current portion of corporate bonds + corporate bonds + long-term borrowings. Lease obligations are not included. This excludes the corporate bonds (WBS Class B2 Funding Notes, issued by J-WBS Funding K.K.) with a face value of JPY 27.0bn acquired by SoftBank Corp. during 2010/3 that were issued under the whole business securitization financing scheme associated with the acquisition of Vodafone K.K. Cash position: cash & cash deposits + marketable securities recorded as current assets. (excludes Yahoo! Inc. shares which were held by a subsidiary of SoftBank Corp. in the United States of America). Record high, record high revenue: since SoftBank Corp. applied consolidated accounting in 1995/3. SoftBank Corp. owns 100% shares issued by WILLCOM, Inc. However, WILLCOM, Inc. is in the process of reorganization under the Corporate Reorganization Act and the Company does not have effective control over WILLCOM, Inc. Therefore, WILLCOM, Inc. is not treated as a subsidiary.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.