Music Matters 2008 China Music Overview June 2008

Slide 1: China Music Overview WILLIAM BAO BEAN SOFTBANK CHINA & INDIA HOLDINGS June 2008

Slide 2: China total end user spend on mobile music 2500.0 2000.0 1500.0 1000.0 500.0 0.0 2007 2008F 2009F Source: SBCI, Company reports Unit: US$m 2

Slide 3: SP and carrier ex-net sales on mobile music 2500.0 2000.0 1500.0 1000.0 500.0 0.0 2007 2008F 2009F Wireless Service Providers Carriers Source: SBCI, Company reports Unit: US$m 3

Slide 4: Label mobile sales from SP and carriers 2500.0 2000.0 1500.0 1000.0 500.0 0.0 2007 2008F 2009F Wireless Service Providers Carriers Source: SBCI, Company reports Unit: US$m 4

Slide 5: Int’l label mobile sales from SPs and carriers 2500.0 2000.0 1500.0 1000.0 500.0 0.0 2007 2008F 2009F Total int'l publisher mobile music revenue Source: SBCI, Company reports Unit: US$m 5

Slide 6: China total end user spend on music 2500.0 2000.0 1500.0 1000.0 500.0 0.0 2007 2008F 2009F Mobile Offline Games Online services Online Advertising Source: SBCI, Company reports Unit: US$m 6

Slide 7: China int’l label music sales 2500.0 2000.0 1500.0 1000.0 500.0 0.0 2007 2008F 2009F Mobile Offline Online Services Online Advertising Games Source: SBCI, Company reports Unit: US$m 7

Slide 8: China offline physical music spend 250.0 200.0 150.0 100.0 50.0 0.0 2007 2008F 2009F Offline Source: SBCI, Company reports Unit: US$m 8

Slide 9: China int’l label sales ex-mobile & offline 200.0 150.0 100.0 50.0 0.0 2007 2008F 2009F Mobile Online Services Online Advertising Games Source: SBCI, Company reports Unit: US$m 9

Slide 10: China music model 2007 2008F 2009F Total end-user music spend 1713.7 1933.7 2323.8 Total end-user mobile music spend 1509.4 1745.6 2068.2 Offline end-user music spend 196.0 147.0 176.4 Games licensing 7.0 26.0 33.5 Online services fees 1.3 3.5 15.2 Online advertising 0.0 11.6 30.4 Unit: US$m  Nothing really changed on carrier side  Carrier competition and 3G should shake things up but only gradually  Online gaming  Online services  Online advertising Source: SBCI, Company reports 10

Slide 11: NBA Jam Source: NBA/Getty Images 11

Slide 12: Thank You! William Bao Bean Partner wbean@softbankci.com +86 139 1789 8171 +852 9131 0218 12