Earnings Results for the   Fiscal Year Ended    March 31, 2012        April 26, 2012      SOFTBANK CORP.
DisclaimerThis material was prepared based on information available and views held at the time it was made. Statements in ...
Highlights1. Domestic No.3 in operating income for   3 consecutive years2. Achieved JPY 1 trillion EBITDA   for the first ...
ConsolidatedEarnings Results                   3
(JPY t)                                              3.2                 Net Sales                                        ...
1.0(JPY t)                                               0.9                                                              ...
(JPY t)          NTT DOCOMO                                                                               EBITDA          ...
Domestic EBITDA Ranking (2012/3 Forecast)Rank           Company Name    Amount 1     NTT                    JPY 3.2t 2    ...
675.2(JPY bn)                                               629.1                                                         ...
(JPY bn)           NTT DOCOMO                                      870.0                                                  ...
Domestic Operating Income Ranking           2010/3          2011/3    2012/3 (Forecast)1    NTT             NTT           ...
(%)                                                                            Operating Margin                           ...
Domestic Operating Margin Ranking (2012/3 Forecast)     Rank           Company Name   Margin      1     INPEX             ...
573.6(JPY bn)                                              520.4                                                          ...
313.7(JPY bn)                                                                 Net Income                                  ...
(JPY bn)                                                                                         Net Income               ...
Domestic Net Income Ranking (2012/3 Forecast)                                   Amount  Rank          Company Name       (...
Summary of Consolidated Earnings Results                                                 (JPY bn)               2011/3    ...
Cash Flow                   (JPY bn)                                            2011/3   2012/3Operating cash flow        ...
3 years after Lehman Shock                             19
2,500        Situation of SOFTBANK at the Time (JPY)                                          (bps)                     Sh...
Priority: Strengthen Financial Status 1. Generate JPY 1t Free Cash    Flow in 3 yearsリーマンショックから3年  2. Net interest-bearing...
Target 1: Free Cash Flow JPY 1t   2012/3      Aggregate JPY 1.3t JPY 364.5bn               JPY 1t target               (3 ...
Target 2: Net Interest-bearing Debt HalfJPY 1.9t                    Exceeded                              targetJPY 0.97t ...
Net Interest-bearing Debt & LeasesJPY 2.4t Leases JPY 0.5t                        SignificantJPY 1.9t             JPY 1.1t...
(JPY bn)       112.3    111.1                    Interest Expense                        104.0                            ...
(times)4.0                                      Net Interest-bearing Debt/                                           EBITD...
(times)4.0                                      Net Interest-bearing Debt/           3.5x                                 ...
A+/A1                       SOFTBANK’s Credit Rating     A/A2                                   JCR(A)    A-/A3           ...
Purpose of Net Interest-bearing Debt         Reduction Target      “Strengthen   Financial Status”         Achieved       ...
New Financial  Strategy                30
Former Financial Strategy        Net Interest-        bearing Debt            Zero                            31
New Financial StrategyNet Interest-      Shareholderbearing Debt         Return                                 32
New Financial                                Strategy              Strategic               GrowthShareholder              ...
(JPY)                                                                            Dividend per Share                       ...
Dividend per Share(JPY)                                            40 JPY                              (new policy)       ...
Total Amount of(bn JPY)                                       JPY 43.9bn                                Dividends         ...
Dividend Yield(%)                                                         1.63% Significant                               ...
Enhanced Shareholder Return                     2011/3 (actual)   2012/3 (plan)Dividend per share           5 JPY         ...
Net Interest-bearing Debt Former Policy            New PolicyNet interest-bearing debt           Appropriate    zero      ...
Renewable Energy BusinessMinor impact on consolidatedearningsInvestment less than 1% of totalassets                       ...
2013/3 Target Consolidated Operating IncomeExceed JPY 700.0bn  Continued profit and    revenue growth                     ...
JPY       1t     Consolidated(JPY bn)                                                                                     ...
Mobile Communications       Business                        43
3.54mil                      Subscriber Net                                                   Additions                   ...
5.0         WILLCOM Cumulative Subscribers             (PHS+3G) (mil)                            4.68mil4.5               ...
33.51mil        Cumulative(mil)                                                   Subscribers  30                         ...
(JPY bn)                               1,433.4   Telecom Service Revenue                                                 M...
Telecom Service Revenue Growth                 Mobile Communications Business (FY2011)SOFTBANK                            ...
(JPY bn)                               1,433.4    Telecom Service Revenue                                                 ...
Data ARPU Ratio (FY2011/Q4)SOFTBANK                                                                                       ...
(JPY bn)                                    Operating Income                                Mobile Communications Business...
Operating Income(JPY bn)                                                              Mobile Communications Business      ...
Operating Income Growth                Mobile Communications Business (FY2011)SOFTBANK                                    ...
Tackle the Last Hurdle                         54
190k         Base Stations                                                                          10x                   ...
Number of Wi-Fi SpotsSOFTBANK                                                    250,000      au                   100,000...
Speed Survey of iPhone 4S (Shibuya/daytime/downlink)             Nikkei TRENDY March 22, 2012 articleSOFTBANK             ...
Speed Survey of iPhone 4S (Shinjuku/night time/downlink)              Nikkei TRENDY March 22, 2012 article SOFTBANK       ...
July 25, 2012Launch of 900MHz Service                        59
Intension to Subscribe                                 to SOFTBANK                            (surveyed users of competito...
47%                             Reason for Not                            Subscribing to SOFTBANK                         ...
900MHz Compatible Devices                        All                     Summer                     Models in             ...
Approx.                                                                Number of LTE                                      ...
TD-LTE/AXGP   SoftBank 4G   World’s   Fastest  Max.Downlink   110Mbps                            64
Speed Survey for Next Generation Service                (downlink/daytime) SoftBank 4G                                    ...
FDD-LTE   Launch this FallFlat Rate Plan for Smartphones      JPY 5,985/month                            66
(JPY bn)                      600.0                                        Consolidated CAPEX             516.3           ...
Further Growth                 68
“Three Sacred Treasures”Washing machine   Refrigerator   Monochrome TV                                                 69
NEW “Three Sacred Treasures” Smartphone   Tablet   Cloud/SNS                                   70
(mil)120                                                                          Mobile Phone                            ...
(units)                                          Cumulative Sales of                                                   Sma...
Operator Choice for iPhone 4S          (survey amongst DOCOMO users)                                     More than half   ...
(mil)                                           6.02mil                   Tablet Sales                                    ...
(units)                                                     Cumulative Sales of                 SOFTBANK                  ...
Evolution of iPad             iPad 2       New iPadProcessor       A5           A5X                           (Quad core) ...
255.0bn(JPY bn)                                                      Cloud Market (domestic)                              ...
No. of Acquired                        cum. 190k Google Apps for Business                                            IDs  ...
Introduce a New Work-style Sompo Japan Insurance 30,000 IDs    Kokuyo   6,500 IDsNikken Sekkei Ltd   3,500 IDs            ...
iPhone     iPadAll employees are IT-savvy                             80
Contracts per Person                                            (SOFTBANK TELECOM)                                        ...
Number of Service Lines                                             (SOFTBANK TELECOM)                                    ...
(JPY)                                                                                      Operating Income               ...
April 2012 In-housePaperlessDeclaration               84
DiversifyRevenue Sources                  85
46.52mil      M2M Module Contracts                             (domestic)                        10x in 10 years4.77mil201...
M2M Module Installed on “Internavi”            ・Weather/disaster information            ・Route information            ・Goo...
Sales of SoftBank SELECTION Business(JPY bn)                              16.3bn                                       9x ...
New      89
New Management of Yahoo JAPAN   Chief Executive Officer   Operating Officer, Head of BS                             Busine...
Key PhraseSmartphone  First               91
Page Views for Smartphone16,000                                                  160x            *Indexed at Sept. 2008 = ...
Commerce Transactions via Smartphones                                           14x   Q1   Q2   Q3   Q4   Q1   Q2   Q3   Q...
Smartphone  ApplicationsSequential launch                 94
Vertical Integration Model           SOFTBANK Group       CompetitorsService                                ーNetwork      ...
SOFTBANK Group Synergy                                                         (JPY) (JPY bn)   Operating Income          ...
Consolidated Operating Income                                                  2017/3                                     ...
GlobalGame Change              98
Family Spending per Household (Japan)  (JPY)14,000                                                                        ...
Market Capitalization (world)(JPY t)                     Information  JPY    689t                     Communication       ...
Switch of Leading RoleProduct           Information Global Game Change                                101
Scale of Internet Economy                          (20 major countries)(JPY t)                                         JPY...
Global GDP ComparisonRank                 GDP 1     USA         JPY 1,202t 2     China        JPY 482t 3     Japan        ...
Overwhelming No.1 900 Internet Companies                                           104
No. of Users of SOFTBANK Group                                                 1.4bn                   Overwhelming       ...
Comparison with World PopulationRank                                  Population -        SOFTBANK Group                  ...
Market Cap of               SOFTBANKJPY 2.5t              Internet companies              Yahoo Japan    610.0bn          ...
Market Cap                      Comparison           JPY 2.5tJPY 2.3t  KDDI     SOFTBANK                108
Market Cap                        Market Cap       Comparison Market Cap            JPY 2.5tJPY 2.3t                      ...
Market Cap                        Market Cap        Comparison Market Cap            JPY 2.5tJPY 2.3tJPY 0.2t (JCOM etc.) ...
(JPY bn)                                                                             Operating Income              SOFTBAN...
Operating Income CAGR (FY2005-FY2011)      Apple                                                                          ...
SOFTBANK’s                        Enterprise Value             JPY 2.5t       13x             JPY 1.7t                    ...
SOFTBANK’s                                 Enterprise Value                                  Further             JPY 2.5t ...
New Financial                                Strategy              Strategic               GrowthShareholder              ...
Maximize Shareholder Value                         116
117
1. Application of accounting standard for disclosure on segments      The “Accounting Standard for Disclosures about Segme...
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Softbank presentation 2011_004

  1. 1. Earnings Results for the Fiscal Year Ended March 31, 2012 April 26, 2012 SOFTBANK CORP.
  2. 2. DisclaimerThis material was prepared based on information available and views held at the time it was made. Statements in thismaterial that are not historical facts, including, without limitation, plans, forecasts and strategies are “forward-lookingstatements”.Forward-looking statements are by their nature subject to various risks and uncertainties, including, without limitation, adecline in general economic conditions, general market conditions, technological developments, changes in customer demandfor 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 anyforward-looking statement. With the passage of time, information in this material (including, without limitation, forward-lookingstatements) could be superseded or cease to be accurate.SOFTBANK CORP. disclaims any obligation or responsibility to update, revise or supplement any forward-looking statementor other information in any material or generally to any extent. Use of or reliance on the information in this material is at yourown risk.Information contained herein regarding companies other than SOFTBANK CORP. and other companies of the SOFTBANKGroup is quoted from public sources and others. SOFTBANK CORP. has neither verified nor is responsible for the accuracyof such information.* Please refer to the last page for details relating to the application of new accounting standards, definition of terms,trademarks and registered trademarks used in this material.
  3. 3. Highlights1. Domestic No.3 in operating income for 3 consecutive years2. Achieved JPY 1 trillion EBITDA for the first time3. Rank within domestic net income top 10 2
  4. 4. ConsolidatedEarnings Results 3
  5. 5. (JPY t) 3.2 Net Sales 3.0 Record high for 2 consecutive years 7% increase 3 Telecommunications businesses (Mobile communications, Broadband Infrastructure, Fixed-line Telecommunications) Internet Culture Others0 2004/3 ’05/3 ’06/3 ’07/3 ’08/3 ’09/3 ’10/3 ’11/3 ’12/3 4
  6. 6. 1.0(JPY t) 0.9 EBITDA Achieved JPY 1t for the first time 3 Telecommunications businesses (Mobile communications, Broadband Infrastructure, Fixed-line Telecommunications) Internet Culture Others0 2004/3 ’05/3 ’06/3 ’07/3 ’08/3 ’09/3 ’10/3 ’11/3 ’12/3 5
  7. 7. (JPY t) NTT DOCOMO EBITDA 1.6 (Forecast by NTT DOCOMO) 1.0 SOFTBANK 0.9 KDDI Surpassed KDDI 0 2006/3 ’07/3 ’08/3 ’09/3 ’10/3 ’11/3 ’12/3 *Created by SOFTBANK CORP. based on respective companies’ publicly available information 6
  8. 8. Domestic EBITDA Ranking (2012/3 Forecast)Rank Company Name Amount 1 NTT JPY 3.2t 2 NTT DOCOMO JPY 1.6t 3 TOYOTA MOTOR JPY 1.2t No. 4 4 5 SOFTBANK NISSAN MOTOR JPY 1.0t JPY 1.0t in Japan 6 KDDI (actual) JPY 0.9t 7 Hitachi JPY 0.8t 8 INPEX JPY 0.8t 9 JR East JPY 0.7t (Source) Bloomberg, excluding financial institutions10 Canon (actual) JPY 0.6t As of April 25, 2012 7
  9. 9. 675.2(JPY bn) 629.1 Operating Income Record high for 7 consecutive years 7% increase 3 Telecommunications businesses (Mobile communications, Broadband Infrastructure, Fixed-line Telecommunications) Internet Culture0 Others 2004/3 ’05/3 ’06/3 ’07/3 ’08/3 ’09/3 ’10/3 ’11/3 ’12/3 8
  10. 10. (JPY bn) NTT DOCOMO 870.0 Operating Income (Forecast by NTT DOCOMO) 675.2 SOFTBANK 477.6 Record high for KDDI 7 consecutive years 0 2006/3 ’07/3 ’08/3 ’09/3 ’10/3 ’11/3 ’12/3 *Created by SOFTBANK CORP. based on respective companies’ publicly available information 9
  11. 11. Domestic Operating Income Ranking 2010/3 2011/3 2012/3 (Forecast)1  NTT  NTT  NTT2  NTT DOCOMO  NTT DOCOMO  NTT DOCOMO No.3 for3 SOFTBANK SOFTBANK SOFTBANK 3 consecutive4  INPEX  HONDA MOTOR  INPEX years5  KDDI  NISSAN MOTOR  NISSAN MOTOR6  Takeda  INPEX  KDDI7  HONDA MOTOR  KDDI Hitachi (Source) Bloomberg, excluding financial institutions As of April 25, 2012 10
  12. 12. (%) Operating Margin 21.1% SOFTBANK NTT DOCOMO 20.5% (Forecast by NTT No.1 margin DOCOMO) 13.4% KDDI0 2006/3 ’07/3 ’08/3 ’09/3 ’10/3 ’11/3 ’12/3 *Created by SOFTBANK CORP. based on respective companies’ publicly available information 11
  13. 13. Domestic Operating Margin Ranking (2012/3 Forecast) Rank Company Name Margin 1 INPEX 60% 2 FANUC (actual) 41% 3 JR Central 24% 4 5 SOFTBANK NTT DOCOMO 21% 20% No.4 (Companies with operating income exceeding JPY 200bn) 6 Takeda 19% 7 JT 19% 8 JR East 14% 9 KOMATSU 14% 10 KDDI (actual) 13% (Source) Bloomberg, excluding financial institutions As of April 25, 2012 12
  14. 14. 573.6(JPY bn) 520.4 Ordinary Income Record high for 3 consecutive years 10% increase0 2004/3 ’05/3 ’06/3 ’07/3 ’08/3 ’09/3 ’10/3 ’11/3 ’12/3 13
  15. 15. 313.7(JPY bn) Net Income Record high for 189.7 2 consecutive years 65% increase0 2004/3 ’05/3 ’06/3 ’07/3 ’08/3 ’09/3 ’10/3 ’11/3 ’12/3 14
  16. 16. (JPY bn) Net Income NTT DOCOMO 474.0 (Forecast by DOCOMO) 313.7 SOFTBANK 238.6 KDDI Surpass KDDI 0 2006/3 ’07/3 ’08/3 ’09/3 ’10/3 ’11/3 ’12/3 *Created by SOFTBANK CORP. based on respective companies’ publicly available information 15
  17. 17. Domestic Net Income Ranking (2012/3 Forecast) Amount Rank Company Name (JPY bn) 1  NTT 491.0 2  NTT DOCOMO 481.8 3  Mitsubishi Corporation 470.5 4 5  Mitsui & Co.  NISSAN MOTOR 434.4 329.7 Within top 6 SOFTBANK 313.7 10 for the 7 8  ITOCHU Corporation Hitachi 282.5 281.9 first time 9  TOYOTA MOTOR 272.1 10 Sumitomo Corporation 262.1 (Source) Bloomberg, excluding financial institutions As of April 25, 2012 16
  18. 18. Summary of Consolidated Earnings Results (JPY bn) 2011/3 2012/3 Increment  YoY Net sales 3,004.6 3,202.4 197.7 107% EBITDA 930.7 1,013.7 82.9 109% Operating 629.1 675.2 46.1 107% income Ordinary 520.4 573.6 53.2 110% income Net income 189.7 313.7 124.0 165% 17
  19. 19. Cash Flow (JPY bn) 2011/3 2012/3Operating cash flow 825.8 740.2Free cash flow 561.3 364.5 1) CAPEX outlays (208.5) (455.0) 2) Decrease of installment receivables 185.2 30.1 (factor increasing free cash flow) 3) Sales of Yahoo! Inc. shares − 57.1 18
  20. 20. 3 years after Lehman Shock 19
  21. 21. 2,500 Situation of SOFTBANK at the Time (JPY) (bps) Share Price 2,500 CDS Spread 2,266bps2,000 2,000リーマンショックから3年 1,500 Plunge 1,500 1,0001,000 Expand 500 JPY 650 500 0 Aug. 2008 Oct. 2008 July 2008 March 2009 20
  22. 22. Priority: Strengthen Financial Status 1. Generate JPY 1t Free Cash Flow in 3 yearsリーマンショックから3年  2. Net interest-bearing debt reduction 21
  23. 23. Target 1: Free Cash Flow JPY 1t 2012/3 Aggregate JPY 1.3t JPY 364.5bn JPY 1t target (3 year aggregate)リーマンショックから3年  2011/3 Exceeded JPY 561.3bn target 2010/3 JPY 390.8bn 22
  24. 24. Target 2: Net Interest-bearing Debt HalfJPY 1.9t Exceeded targetJPY 0.97t Half (by 2012/3) JPY 0.5t 2009/3 2012/3 *Lease obligations are not included 23
  25. 25. Net Interest-bearing Debt & LeasesJPY 2.4t Leases JPY 0.5t SignificantJPY 1.9t JPY 1.1t Leases reduction JPY 0.6t JPY 0.5t 2009/3 2012/3 *Lease obligations are finance leases 24
  26. 26. (JPY bn) 112.3 111.1 Interest Expense 104.0 Nearly half 62.2 0 2009/3 ’10/3 ’11/3 ’12/3 25
  27. 27. (times)4.0 Net Interest-bearing Debt/ EBITDA Multiple3.0 2.9x Significant improvement2.01.0 0.5x 0 2009/3 ’10/3 ’11/3 ’12/3 *Lease obligations are not included 26
  28. 28. (times)4.0 Net Interest-bearing Debt/ 3.5x EBITDA Multiple2.7 Significant improvement1.3 1.1x Including lease obligations 0 2009/3 ’10/3 ’11/3 ’12/3 *Lease obligations are finance leases 27
  29. 29. A+/A1 SOFTBANK’s Credit Rating A/A2 JCR(A) A-/A3 Best rating everBBB+/Baa1BBB/Baa2 S&P (BBB)BBB-/Baa3 Moody’s (Baa3) Investment Grade BB+/Ba1 BB/Ba2 BB-/Ba3 2008 ’09 ’10 ’11 ’12 28
  30. 30. Purpose of Net Interest-bearing Debt Reduction Target “Strengthen Financial Status” Achieved 29
  31. 31. New Financial Strategy 30
  32. 32. Former Financial Strategy Net Interest- bearing Debt Zero 31
  33. 33. New Financial StrategyNet Interest- Shareholderbearing Debt Return 32
  34. 34. New Financial Strategy Strategic GrowthShareholder Net Interest- Return bearing Debt 33
  35. 35. (JPY) Dividend per Share (former policy) Gradual dividend increase UP UP 5 JPY 5 JPY 2.5 JPY 2004/3 ’05/3 ’06/3 ’07/3 ’08/3 ’09/3 ’10/3 ’11/3 ’12/3 ’13/3 ’14/3 ’15/3 (plan) (plan) 34
  36. 36. Dividend per Share(JPY) 40 JPY (new policy) Accelerate dividend increase previously planned for 2015/3 8x 5 JPY 5 JPY 2.5 JPY 2004/3 ’05/3 ’06/3 ’07/3 ’08/3 ’09/3 ’10/3 ’11/3 ’12/3 ’13/3 ’14/3 ’15/3 (plan) 35
  37. 37. Total Amount of(bn JPY) JPY 43.9bn Dividends (new policy) Accelerate dividend increase previously planned for 2015/3 5.4 5.4 8x 2.7 2004/3 ’05/3 ’06/3 ’07/3 ’08/3 ’09/3 ’10/3 ’11/3 ’12/3 ’13/3 ’14/3 ’15/3 (plan) 36
  38. 38. Dividend Yield(%) 1.63% Significant increase 11x 0.15%2004/3 ’05/3 ’06/3 ’07/3 ’08/3 ’09/3 ’10/3 ’11/3 ’12/3 (plan) *Share price at fiscal year-end 37
  39. 39. Enhanced Shareholder Return 2011/3 (actual) 2012/3 (plan)Dividend per share 5 JPY 40 JPY 8xTotal amount ofdividends JPY 5.4bn JPY 43.9bn 8x  Payout ratio 2.9% 14.0% 5x  Dividend yield 0.15% 1.63% 11x 38
  40. 40. Net Interest-bearing Debt Former Policy New PolicyNet interest-bearing debt Appropriate zero level 39
  41. 41. Renewable Energy BusinessMinor impact on consolidatedearningsInvestment less than 1% of totalassets 40
  42. 42. 2013/3 Target Consolidated Operating IncomeExceed JPY 700.0bn Continued profit and revenue growth 41
  43. 43. JPY 1t Consolidated(JPY bn) Operating Income JPY 675.2bn 2017/3 to JPY 1t 0 2005/3’06/3 ’07/3 ’08/3 ’09/3 ’10/3 ’11/3 ’12/3 ’13/3 ’14/3 ’15/3 ’16/3 ’17/3 (target) 42
  44. 44. Mobile Communications Business 43
  45. 45. 3.54mil Subscriber Net Additions (2012/3) Overwhelmingly2.11mil 2.12mil No.1 au NTT SOFTBANK DOCOMO *Created by SOFTBANK CORP. based on respective companies’ publicly available information 44
  46. 46. 5.0 WILLCOM Cumulative Subscribers (PHS+3G) (mil) 4.68mil4.5 Record high4.03.5 WILLCOM SOFTBANK3.0 May 2009 Dec. 2010 Mar. 2012 45
  47. 47. 33.51mil Cumulative(mil) Subscribers 30 WILLCOM (PHS) More than doubled 20 since acquisition 15.22mil Vodafone Japan SOFTBANK 10 Apr. 2006 Mar. 2012 46
  48. 48. (JPY bn) 1,433.4 Telecom Service Revenue Mobile Communications Business 1,271.6 13% increase0 2008/3 ’09/3 ’10/3 ’11/3 ’12/3 47
  49. 49. Telecom Service Revenue Growth Mobile Communications Business (FY2011)SOFTBANK 13% Telstra (FY2011/H1) 10% China Mobile (FY2011/H1) 8% SingTel (FY2011/Q3) 7% Verizon 6% AT&T 6% World’s No.1 NTT DOCOMO (FY2011/Q3)-1% au -5% *Comparison with top market cap mobile operators in the world 48
  50. 50. (JPY bn) 1,433.4 Telecom Service Revenue Mobile Communications Business 1,271.6 Data revenue 652.0 811.4 +24% 619.6 622.0 Voice revenue etc. ±0%0 2008/3 ’09/3 ’10/3 ’11/3 ’12/3 49
  51. 51. Data ARPU Ratio (FY2011/Q4)SOFTBANK 65%au 59%NTT DOCOMO (FY2011/Q3)55%Verizon (including SMS) 42%AT&T (including SMS) 41%Deutsche Telekom 25% 34%TelefonicaSingTel 23% (FY2011/Q3) 21% World’s No.1 *Comparison with top market cap mobile operators in the world 50
  52. 52. (JPY bn) Operating Income Mobile Communications Business Vodafone Japan 76.3 0 2003/3’04/3 ’05/3 ’06/3 51
  53. 53. Operating Income(JPY bn) Mobile Communications Business 429.2 402.4 Record high for 3 consecutive years SOFTBANK 7% increase Vodafone Japan 76.3 0 2003/3’04/3 ’05/3 ’06/3 ’07/3 ’08/3 ’09/3 ’10/3 ’11/3 ’12/3 52
  54. 54. Operating Income Growth Mobile Communications Business (FY2011)SOFTBANK 7% China Mobile 2% (FY2011/H1) AT&T (11年度Q3) 0.3% Verizon −1% NTT DOCOMO −2% (FY2011/Q3) 34% World No.1 au -4% *Comparison with top market cap mobile operators in the world 53
  55. 55. Tackle the Last Hurdle 54
  56. 56. 190k Base Stations 10x since acquisitionAcquisition ofVodafone Japan ▼ 20k 0 2007/3 2008/3 2009/3 2010/3 2011/3 2012/3 *Excluding home femtocell and home repeaters 55
  57. 57. Number of Wi-Fi SpotsSOFTBANK 250,000 au 100,000 Overwhelmingly No.1 NTT 8,800 1.2Mbps DOCOMO *Surveyed by SOFTBANK CORP. 56
  58. 58. Speed Survey of iPhone 4S (Shibuya/daytime/downlink) Nikkei TRENDY March 22, 2012 articleSOFTBANK 3.3Mbps au 1.2Mbps 2.6x (Source) Nikkei TRENDY citations 57
  59. 59. Speed Survey of iPhone 4S (Shinjuku/night time/downlink) Nikkei TRENDY March 22, 2012 article SOFTBANK 1.9Mbps au 0.6Mbps 3.4x (Source) Nikkei TRENDY citations 58
  60. 60. July 25, 2012Launch of 900MHz Service 59
  61. 61. Intension to Subscribe to SOFTBANK (surveyed users of competitors) 30% increaseBefore After Understood *Surveyed by external research company (as of April, 2012) n=1,002 people Platinum Band 60 Characteristics
  62. 62. 47% Reason for Not Subscribing to SOFTBANK (Network related) Half 20%Before After Understood *Surveyed by external research company (April. 2012), n=1,000 people Platinum Band 61 Characteristics
  63. 63. 900MHz Compatible Devices All Summer Models in 2012 62
  64. 64. Approx. Number of LTE 1.9bn Subscribers (worldwide) Towards Mobile Broadband Approx. 40mil0 2012/3 ’13/3 ’14/3 ’15/3 ’16/3 ’17/3 ’18/3 (Source) Created by SOFTBANK CORP. based on “Survey on Movements in the Global Mobile Phone Market”, SEED PLANNING (March 21, 2012) 63
  65. 65. TD-LTE/AXGP SoftBank 4G World’s Fastest Max.Downlink 110Mbps 64
  66. 66. Speed Survey for Next Generation Service (downlink/daytime) SoftBank 4G Fastest UQ WiMAXNTT DOCOMO Xi (Source) Surveyed by ICT Research & Consulting as of March 7. Average of 26 points at Tokyo, Nagoya, Osaka area 65
  67. 67. FDD-LTE Launch this FallFlat Rate Plan for Smartphones JPY 5,985/month 66
  68. 68. (JPY bn) 600.0 Consolidated CAPEX 516.3 450.0 Enhance coverage 420.5 with 900MHz 2011/3 ’12/3 ’13/3 ’14/3 * 2013/3 excludes Fukuoka Yahoo! JAPAN Dome related CAPEX (plan) 67
  69. 69. Further Growth 68
  70. 70. “Three Sacred Treasures”Washing machine Refrigerator Monochrome TV 69
  71. 71. NEW “Three Sacred Treasures” Smartphone Tablet Cloud/SNS 70
  72. 72. (mil)120 Mobile Phone Subscribers (domestic)100 Conventional 67% Transitioning to the 80 handset smartphone era 60 40 23% 20 9% Smartphone 0 2009/3 ’10/3 ’11/3 ’12/3 ’13/3 ’14/3 ’15/3 ’16/3 ’17/3 (plan) (Source) MM Research Institute “Smartphone market size trend and forecast” (March 13, 2012) 71
  73. 73. (units) Cumulative Sales of Smartphones at SOFTBANK Electronics Retail Stores (Acquisition) Pioneer NTT DOCOMO au 0 2008 ’09 ’10 ’11 ’12 (CY) *Surveyed by external research company on number of sales at major electronics retail stores 72
  74. 74. Operator Choice for iPhone 4S (survey amongst DOCOMO users) More than half au chose SOFTBANK SOFTBANKDon’t know *Surveyed by external research company (as of March 31, 2012) n=approx. 300 73
  75. 75. (mil) 6.02mil Tablet Sales (Japan) Become widespread 0.97mil 2010/3 ’11/3 ’12/3 ’13/3 ’14/3 (Source) Yano Research Institute “Survey on Tablet Market 2011” (July 27, 2011) (plan) 74
  76. 76. (units) Cumulative Sales of SOFTBANK Tablets at Electronics Retail Stores Pioneer NTT DOCOMO 0 2011 2012 (CY) *Surveyed by external research company on number of sales at major electronics retail stores 75
  77. 77. Evolution of iPad iPad 2 New iPadProcessor A5 A5X (Quad core) 2xResolution 132 ppi 264 ppi 4xCamera 920k pixel 5mil pixel 5x 76
  78. 78. 255.0bn(JPY bn) Cloud Market (domestic) Become widespread 66.2bn 2010 ’11 ’12 ’13 ’14 ’15 (CY) (Source) IDC Japan “Domestic Cloud Service Market (plan) 2011-2015 Forecast Update ( Nov. 9, 2011) 77
  79. 79. No. of Acquired cum. 190k Google Apps for Business IDs No.1 globally8kQ1 Q2 Q3 Q4 2012/3 *No.1 globally: latest Google Apps for Business actual sales results 78
  80. 80. Introduce a New Work-style Sompo Japan Insurance 30,000 IDs Kokuyo 6,500 IDsNikken Sekkei Ltd 3,500 IDs Out of office In office 79
  81. 81. iPhone iPadAll employees are IT-savvy 80
  82. 82. Contracts per Person (SOFTBANK TELECOM) 1.8x Before IT After ITRoll-out(FY2009/H1) Roll-out(FY2011/H2) 81
  83. 83. Number of Service Lines (SOFTBANK TELECOM) 2.2x Before IT After ITRoll-out(FY2009/H1) Roll-out(FY2011/H2) 82
  84. 84. (JPY) Operating Income 29.73mil per Employee KDDI (consolidated) 25.62mil High SOFTBANK productivity NTT 5.54mil 0 2007/3 ’08/3 ’09/3 ’10/3 ’11/3 ’12/3 *Created by SOFTBANK CORP. based on respective companies’ publicly available information 83
  85. 85. April 2012 In-housePaperlessDeclaration 84
  86. 86. DiversifyRevenue Sources 85
  87. 87. 46.52mil M2M Module Contracts (domestic) 10x in 10 years4.77mil2011/3 2021/3 (Source) Outlook of Communication Module Devices (forecast) in 2020” SEED PLANNING (Jan. 5, 2012) 86
  88. 88. M2M Module Installed on “Internavi” ・Weather/disaster information ・Route information ・Good gas mileage route Cum. 160k lines *As of March 2012 87
  89. 89. Sales of SoftBank SELECTION Business(JPY bn) 16.3bn 9x in 3 years 1.8bn 2009/3 ’10/3 ’11/3 ’12/3 88
  90. 90. New 89
  91. 91. New Management of Yahoo JAPAN Chief Executive Officer Operating Officer, Head of BS Business Group Masatsugu Shidachi (43) Manabu Miyasaka (44) Operating Officer, Head of Consumer Business Group Koji Sakamoto (44) Operating Officer, Head of Business Strategy Group Kazuto Ataka (44) Chief Financial Officer Toshiki Oya (42) Operating Officer, Head of Tetsuya Nishimaki (52) Operations Group Operating Officer Tomoaki Tanida (38) Chief Operating Officer Head of R&D Group Operating Officer Kentaro Kawabe (37) Chief Mobile Officer Shin Murakami (35) Average minus 9 years 90
  92. 92. Key PhraseSmartphone First 91
  93. 93. Page Views for Smartphone16,000 160x *Indexed at Sept. 2008 = 10014,00012,00010,000 8,000 6,000 4,000 2,000 0 Sept. Mar. 2008 2012 92
  94. 94. Commerce Transactions via Smartphones 14x Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2011/3 2012/3 93
  95. 95. Smartphone ApplicationsSequential launch 94
  96. 96. Vertical Integration Model SOFTBANK Group CompetitorsService ーNetwork 95
  97. 97. SOFTBANK Group Synergy (JPY) (JPY bn) Operating Income 3,000 Data ARPU200.0 2,000100.0 1,000 1997/3 ’99/3 ’01/3 ’03/3 ’05/3 ’07/3 ’09/3 ’11/3 2006/3 ’07/3 ’08/3 ’09/3 ’10/3 ’11/3 ’12/3 96
  98. 98. Consolidated Operating Income 2017/3 Towards JPY 1t JPY 870.0bnNTT DOCOMO JPY 675.2bn SOFTBANK JPY 477.6bn KDDI 2012/3 2017/3 97
  99. 99. GlobalGame Change 98
  100. 100. Family Spending per Household (Japan) (JPY)14,000 Changed12,000 Information Communication10,000 8,000 Car 6,000 2006 ’07 ’08 ’09 ’10 ’11 (CY) *Created by SOFTBANK based on “Family budget Survey” by the Ministry of Internal Affairs and Communications 99
  101. 101. Market Capitalization (world)(JPY t) Information JPY 689t Communication Changed Industry JPY 268t JPY 325t JPY 103t 1994 2012 (CY) 100 *Created by SOFTBANK CORP. based on Bloomberg data
  102. 102. Switch of Leading RoleProduct Information Global Game Change 101
  103. 103. Scale of Internet Economy (20 major countries)(JPY t) JPY 350t JPY 270t Rapid growth 1985 2010 2016 (CY) Launch of Internet (Source) Boston Consulting Group, “The Internet Economy in the G-20” (Mar. 19, 2012) 102
  104. 104. Global GDP ComparisonRank GDP 1 USA JPY 1,202t 2 China JPY 482t 3 Japan JPY 448t − Internet JPY 350t World’s No.4 4 Germany JPY 272t economy 5 France JPY 212t (Source) IMF ”World Economy Outlook Report Database」(April 2011) 103
  105. 105. Overwhelming No.1 900 Internet Companies 104
  106. 106. No. of Users of SOFTBANK Group 1.4bn Overwhelming Customer Base 0.9bn2006/3 ’07/3 ’08/3 ’09/3 ’10/3 ’11/3 ’12/3 *Created by SOFTBANK CORP. based on respective companies’ publicly available information *InMobi: number of reaches 105
  107. 107. Comparison with World PopulationRank Population - SOFTBANK Group 1.4bn World 1 China 1.3bn No.1 2 India 1.2bn 3 USA 0.3bn 4 Indonesia 0.2bn 5 Brazil 0.2bn (Source) United Nations Population Fund “State of World Population 2010” 106
  108. 108. Market Cap of SOFTBANKJPY 2.5t Internet companies Yahoo Japan    610.0bn JPY Alibaba Group   920.0bn JPYJPY 1.7t RenRen       70.0bn JPY JPY 50.0bn Other listed co.’s     +890 other co.’s +αJPY bnJPY 0.8t Telecommunications business 107
  109. 109. Market Cap Comparison JPY 2.5tJPY 2.3t KDDI SOFTBANK 108
  110. 110. Market Cap Market Cap Comparison Market Cap JPY 2.5tJPY 2.3t Internet companiesJPY 0.2t (JCOM etc.) Yahoo Japan    610.0bn JPY Alibaba Group   920.0bn JPY JPY 1.7t RenRen       70.0bn JPY JPY 50.0bn Other listed co.’s    JPY 2.1t JPY 0.8t Telecommunications business KDDI SOFTBANK 109
  111. 111. Market Cap Market Cap Comparison Market Cap JPY 2.5tJPY 2.3tJPY 0.2t (JCOM etc.) Internet companiesJPY 2.1t JPY 0.8t Telecommunications business KDDI SOFTBANK 110
  112. 112. (JPY bn) Operating Income SOFTBANK 675.2 Comparison CAGR 49% 477.6 CAGR 8% KDDI 1.4x0 2006/3 ’07/3 ’08/3 ’09/3 ’10/3 ’11/3 ’12/3 *Created by SOFTBANK CORP. based on respective companies’ publicly available information 111
  113. 113. Operating Income CAGR (FY2005-FY2011) Apple 65%SOFTBANK 49% Google 33%Amazon.com 12% AT&T 12%China Mobile 12% Overwhelming eBay KDDI 9% 8% growth Telefonica 3%NTT DOCOMO 1% Verizon 1% *Created by SOFTBANK CORP. based on Bloomberg data and respective companies’ publicly available information *NTT DOCOMO FY2011 is forecast 112
  114. 114. SOFTBANK’s Enterprise Value JPY 2.5t 13x JPY 1.7t Value of investmentMarket capJPY 0.2t JPY 0.8t Value of business 1994 2012 at IPO Current 113
  115. 115. SOFTBANK’s Enterprise Value Further JPY 2.5t growth JPY 1.7t Value of investmentMarket capJPY 0.2t JPY 0.8t Value of business 1994 2012 at IPO Current Future 114
  116. 116. New Financial Strategy Strategic GrowthShareholder Net Interest- Return bearing Debt 115
  117. 117. Maximize Shareholder Value 116
  118. 118. 117
  119. 119. 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), and loss on disposal of fixed assets included in operating expenses. 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.
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