Earnings Results for the Third Quarter Ended December 31, 2005 (3Q/FY2006)
February 10, 2006 SOFTBANK CORP. ＜Highlights＞ ¾To achieve a consolidated operating surplus on an annual basis ¾Highest level of consolidated EBITDA ever ¾To recoup investment (Return on investment totaled approx. ¥200 bil.)
IIncreasencrease enterpriseenterprise valuevalue 2 3Q/FY06 Summary of Consolidated Earning Results
3Q/FY06 3Q/FY05 YOY change (Oct - Dec, 2005) (Oct - Dec, 2004)
Net Sales 287.4 258.0 +29.3
EBITDA 44.7 15.8 +28.8
Operating Income 23.5 (7.5) +31.0
Ordinary Income 11.2 (8.0) +19.2 Income before income taxes and 59.6 (9.6) +69.3 minority interest
Net Income 22.0 (26.5) +48.5 3 3Q/FY06 Summary of Consolidated Earning Results
3Q/FY06 3Q/FY05 YOY change (Apr - Dec, 2005) (Apr - Dec, 2004)
Net Sales 810.2 561.7 +248.4
EBITDA 94.9 27.8 +67.0
Operating Income 27.9 (14.3) +42.2
Ordinary Income (2.2) (33.9) +31.6 Income before income taxes and 85.5 4.0 +81.5 minority interest Net Income 17.8 (32.6) +50.4 4 Consolidated Net Sales (1Q-3Q YTD 9 months) 810.2
800 Others
700 e-Commerce Seg. 192.1 509.9 600 e-Finance* Internet Culture 113.3 500 Seg.
400 175.7 257.6 Fixed-line telecom 300 70.3 Seg. （JAPAN TELECOM ） Consolidated from 3Q/FY05 200 81.6
100 196.3 BB Infrastructure 148.2 Seg. 0 * Retroactively adjusted figures FY05/1Q-3Q FY06/1Q-3Q without e-Finance segment 5 Consolidated Net Sales (Quarter)
88.6 Fixed-line telecom 100 87.3 81.5 84.3 55.5 58.6 81.6 Seg. （JAPAN TELECOM ）
50 20.9 22.5 BB Infrastructure 71.3 56.7 61.0 63.9 46.1 49.7 52.3 Seg. 0 1Q 2Q 3Q 4Q 1Q 2Q 3Q * Retroactively adjusted figures 2005 2006 without e-Finance segment 6 Consolidated Operating Income (Quarter)
20 7.4 16.1
10 7.5
FY03 FY04 FY05 FY06 Q1 Q1 Q1 Q1 0 3Q/FY06 ¥23.5 bil. -2.9 (YTD 9 months: ¥27.9 bil.) -3.8 -3.1 -6.6 -7.5 -10 -8.8 -10.7 -11.0 * Including the effects of the sale of the ADSL modem -15.1 -20 rental business: ¥7.4 bil. -20.4 -24.1 -27.0 -30
-33.7 -40 7 Consolidated EBITDA (Quarter)
50 44.7
40 30.7 30 19.5 3Q/FY06 ¥44.7 bil. 20 16.2 15.8 (YTD 9 months: ¥94.9 bil.)
10 6.0 5.9 1.4 0.1 0 FY03 FY04 FY05 FY06 1Q 1Q 1Q 1Q Significantly increased -8.0 -7.0 -10 (YoY approx. 3 times) -14.5 -16.6 -20 -22.2 （EBITDA： Operating Income (Loss) + -26.2 -30 Depreciation and Amortization） 8 Consolidated EBITDA (Annual)
4Q 120
88.0
80 71.9 94.9 1Q-3Q (9 months) 54.6 43.8 44.0 ¥94.9 bil. 40 28.8 21.5 Largest ever 0 ’95 ’96 ’97 ’98 ’99 ’00 ’01 ’02 ’03 ’04 ’05 -10.0 1Q-3Q （Annual basis） -20.7 -40
-69.7 -80 9 Consolidated Ordinary Income (Quarter)
11.2 10 FY04 FY05 FY06 1Q 1Q 1Q 0 3Q/FY06 -0.4 ¥11.2 bil. (YTD 9 months: ¥(2.2) bil.)
-10 -8 -8.6 -9.6 -11.6 -11.3 -13 -14.2 Significant recovery- -20 Turned positive on a -23.0 quarterly basis -30 -30.6
-40 10 Consolidated Net Income (Quarter)
22.0 20
11.8 10 6.9 1Q 1Q 1Q 0 FY04 FY05 FY06 3Q/FY06 ¥22.0 bil.
-10 (YTD 9 months: ¥17.8 bil.) -11.1 -13.4 -16.3 -20 -17.8
-30 -26.5 -27.2
-34.7 -40
-42.6 -50 11 Key Driver for Achieving Consolidated Operating Surplus (Quarterly Operating Income by Segment） 1Q/FY03 1Q/FY04 1Q/FY05 1Q/FY06
0
-10
Fixed-line telecom -20 （JAPAN TELECOM）
-30
-40 12 Operating Income/EBITDA by Segment (Quarterly)
BB Infrastructure business
30 Operating Income EBITDA 20 16.3 FY06/3Q Operating Income ：¥9.3 bil. 11.4 EBITDA ：¥16.3 bil. 9.3 10 3 3.4 0.8 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 FY2005 FY 2006 Number of ADSL lines: -4.4 -5.8 -6.5 -10 Exceeded 5 mil. lines -10.5 -11.4 -12.4 （as of the end of Dec. 2005） -16.3 -20 -18.3 13 Operating Income/EBITDA by segment (Quarterly)
Internet culture business
30 Operating Income EBITDA 21.2 FY06/3Q 18.8 Operating Income ：¥19.2 bil. 20 17.9 16.5 19.2 EBITDA ：¥21.2 bil. 14 .0 16.4 17.1 12.0 12.1 15.0 12.8 10 11.1 11.0
0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 FY2005 FY 2006
-10
-20 14 Operating Income/EBITDA by segment (Quarterly)
Fixed-line telecom (JAPAN TELECOM)
30 Operating FY06 3Q Income Operating Income ：¥ (1.7) bil. 20 EBITDA EBITDA ：¥9.1 bil. 9.1 10
FY2005 FY 2006 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 0 Operating Income -0.3 -1.8 -1.7 improved significantly- -10 -6.2 EBITDA turned positive -12.1 -14.2 -14.0 Number of Otoku-line lines: -20 -21.7 760 thousand lines -30 （As of the end of Dec. 2005）
15 Sales of ADSL modem rental business①
Corporate Split
BB TECHNOLOGY Corp. SOFTBANK BB Corp. （e-Commerce business, BB （ADSL business） business other than ADSL）
Corporate Split
BB Modem Rental Inc. (Modem Rental Sold proceeds：¥ 85.0 bil. Business)
16 Sales of ADSL modem rental business②
Cash Proceeds Profit recognization ¥ 85.0 bil. Reflected continuity of service Advanced payment for future royalties:¥ 40.0 bil. Profit from this transaction to (Operating CF) be recognized in future periods Sales proceeds:¥ 45.0 bil. according to the number of (Investment CF) ADSL paying customers and Including gain on sale: ¥ 21.5 bil. useful life of modems (5 yrs).
Impact on 3Q Earnings Impact on net sales： ¥ 14.1 bil. Impact on profit from sale of the business: +¥7.4 bil.
17 Consolidated operating CF (Quarterly)
61.9 60 50 FY06 3Q/¥61.9 bil. 40
30 Royalty payment in advance 20 from sales of modem rental business 10 6.6 0.2 ：¥ 40.0 bil. 0 1Q 1Q 1Q 2004 2005 2006 -10 -11.3 -11.9 -20 -15.8 -15.2 -18.7 -18.2 -30 -25.4
-40 -37.8 18 Return on Investment --- Sales of Investment Securities
Sales Gain on Shares Proceeds Sales SB IT Fund #1 & #2 50.5 9.8 Morningstar,Inc. 9.4 5.9 Advanced Media 9.2 9.1 BroadBand Tower 8.6 8.5 TaoBao 41.7 40.7 Yahoo! 58.8 52.3 U.K./Germany/France/Korea Others 29.1 19.4 Subtotal 207.3 146.0
Total return on investment : approx. ¥ 200 bil. Total gain on these sales : approx. ¥ 150 bil. (Special Income) 19 Consolidated Net Income (YTD 9 months)
Major breakdown 3Q/FY06 3Q/FY05 (3Q/FY06) Ordinary Income (2.2) (33.9) Special Income 157.7 67.1 Special Loss (69.9) (29.1) Income before income taxes and minority interest 85.5 4.0 Income taxes-current (29.5) (22.2) Mostly Yahoo! Income taxes-deffered (17.2) 15.9 Mostly Softbank (no cash-out) Minority interest (21) (30.2) Mostly Yahoo! Net Income 17.8 (32.6) 20 Consolidated Special Income/Special Loss (YTD 9 months)
140 Dilution gain from Refinance arrangement fee changes in equity140 120 interest 120 gain on sale of Penalty for unfulfilled contract commitment 100 investments securities 100 Valuation loss on investment securities 80 80 Retirement and impairment loss on 60 60 tangible and intangible fixed assets
Restructuring charge relating to the 40 40 BBTV business
20 20 Loss on contract revision relating to sales operation change （OTOKU-line related) 0 0 Special Income Special Loss 21 Bond Redemption Schedule (non-consolidated basis, SB and CB)
1,500 2,192.4 Coverage Ratio x6.8
1,000 Outstanding Bonds (as of the end of Dec, 2005) SB:¥ 223.3 bil. CB：¥ 150.0 bil. Fully Repaid Fully Fully Repaid Fully 500 Cash and Cash Equivalents 341.6 0 61.0 93.9 102.5 20.0 95.9 0 Redemption FY06 FY07 FY08 FY09 FY10 FY11 Resource *Figures for cash and cash equivalents, investment in partnerships, private equity holdings are as of the end of December, 2005.Market cap. of listed shares is as of February 9, 2006. Amount of outstanding bonds includes outstanding CBs. Put options attached to three tranches of CBs (¥50bil. each), issued in December 2003, are assumed to be exercised on March 31, 2007, March 31, 2008 and March 31, 2009, respectively. *excluding Market Cap. of collateralized shares and others. 22 SOFTBANK Stock and CB conversion price
3,000
2013 CB Conversion price ¥2,164.50 2,000 2014 CB Conversion price ¥1,984.30
2015 CB Conversion price ¥1,828.10 1,000
- Apr-05 Jul-05 Oct-05 Jan-06 The stock price exceeds the convertible price by a significant margin. 23 Cash Position
Unused portion of credit line facility 600 Cash and Cash Equivalents
500 100.0
161.0 400
30.0 30.0 300 30.0 440.6 75.0 200 31.0 341.6 30.0 289.9 322.2 235.0 100 170.4 133.6 152.5
0 Mar/01 Mar/02 Mar/03 Mar/04 Mar/05 Jun/05 Sep/05 Dec/05 24 Net interest-bearing debt
CBs outstanding 750 Net Debt (excluding outstanding CBs)
615.6 586.2 550 531.6 469.1
150.0 350
243.0 232.0 188.2 134.8 150 319.1
-50 Mar/01 Mar/02 mar/03 Mar/04 Mar/05 Jun/05 Sep/05 Dec/05 25 Lifestyle Company in the 21st century
26 Lifestyle Company in the 21st century
Amusement：broadcast, sports, game Housework：Auction, Online shopping
Travel： Business： Hotel, Airport Mobile office
Finance： Online trading
Healthcare： Home healthcare
School：Online education
Broadband available to all living people everywhere 27 Broadband Provides a Social Infrastructure
Personal use/Mobile ・Whenever, wherever Entertainment revolution ・P2P Sports Broadcast ・Community Game
Healthcare Broadband Distribution revolution Auction Business revolution Commerce Solution Finance Work style Publishing Education
Uniform Value Entertainment Diversified Values ・Consumer-led Distribution Internet ・Interactive ・Diversified tastes Healthcare (Niche markets) Education Business ・Passive ・One-way ・A few leading products dominate the market
Household use/Fixed 28 Broadband changes the way we live
Personalized Access to all types of information Formation of Communities Whenever, wherever Entertainment revolution
Sports Broadcast Game Healthcare Broadband Distribution revolution Auction Business revolution Commerce Finance Solution Publishing Work style Education Consumer-led Networks as utilities From real-world transactions Provides scale based on demand to internet-based transactions
29 Business strategy － to stay ahead of the changing times
Entertainment revolution
Healthcare Broadband
Education Distribution revolution Business revolution
Goal is to hold the No.1 position while continuing to cultivate the market 30 Established position as the market leader ～No.1 in Services～
31 Internet Revolution① Yahoo! BB Triggered expansion of broadband/Creation of new market (Unit: million households)
30
Launch of Service Yahoo! BB No.1* Broadband ADSL :5.00 mil. 20 No. of Lines: 21.41 mil. IP telephony :4.77 mil. Household penetration rate: 42.95％ (as of Sep. ’05） Wireless ＬＡＮ :1.26 mil.
10
Narrowband *Source to verify No.1 position: Ministry of Internal Affairs and Communications (MIC), Company for ADSL; Company’s estimate based on Industry research for IP telephony; Company for Wireless LAN 0 00/3 01/3 02/3 03/3 04/3 05/3 32 Internet Revolution ② Yahoo! JAPAN Facilitate access to all types of information
（billions of PV）（millions of browsers）
Monthly page views 35 120 Unique browsers
30 100 Portal No.1
25 Able to pull in 80 many customers 20 ※１ 60 1.2 bil. page views per day 15 40 mil. unique users per month※2
40 10 *1 Record-highest *2 The number of unique users of Yahoo! JAPAN is calculated 20 based on the following figures: 5 ・viewing rate of 85.1% (from home) and 87.5% (from office), Nielsen/NetRatings, “NetView AMS JP”, December 2005 ・ number of internet users of 44.95 million, NetRatings Japan “INTERNET BASIC RESEARCH in JAPAN” 2005 0 0 02/6 05/12 33 Distribution Revolution① Yahoo! AUCTIONS （million） Creation of consumer-led market
10 Average number of 9 items listed 8 Auction No.1 7 No. of items listed*： 8.94 mil. 6
5
4
3
2
1 * Average number of items listed per month as of December 2005 0 02/6 05/12 34 Distribution Revolution ② Taobao.com
(Unit: mil.) Creation of consumer-led market 【No. of subscribers*】 14 Taobao.com Yahoo! JAPAN 12 No.1 Auction 10 company in China
8 Became a major auction site, exceeding Yahoo! JAPAN, 6 in just two years from the beginning of its service
4
2
* Figures are at the end of each month • Yahoo! JAPAN: No. of Yahoo! Premium Member IDs, • Taobao.com: registered users 0 02/5 03/8 05/12 35 Distribution Revolution ② Taobao.com Creation of consumer-led market (Unit: mil.) 【No. of items listed on auction】
16 Taobao.com Yahoo! JAPAN 14 No.1 Auction 12 company in China 10 No.1 company in Asia in terms of No. of listed items 8
6
4
2 * Figures are at the end of each month * Yahoo!JAPAN: The number of listed items has not been 0 disclosed from July 2005. 02/5 03/8 05/12 36 Distribution Revolution ③ Alibaba.com Provide marketplace for buyers and suppliers all over the world (Unit: mil.) 【No. of subscribers】
11 Alibaba.com 10
9 No.1 8 B2B e-commerce 7 company in China 6 Approx. 10 million subscribers from more than 200 countries 5 and regions 4
3
2
1
0 02/5 05/12 37 Distribution Revolution ④ E*TRADE From real-world transactions to internet-based transactions – Activation of financial trading (millions of account) (billions of yen) 【trends in the number of accounts and daily trading volume】 1.2 600
No. of accounts Daily trading volume 1.0 500Online trading No.1
0.8 400Exceeded 1 mil. Accounts*!
0.6 300
From real-world transactions 0.4 200 to internet-based transactions
0.2 100
0.0 0 *as of January 2006 01/3 06/1 38 New Challenge ～Internet II era～
39 Entertainment Revolution① Yahoo! Streaming/TV Bank Diversification of video content / Niche market
＊4 Satellite TV ＊3 100,000 (infinite) CATV＊2 185 Terrestrial TV＊1 Number 41 of Channels 7
Note: The number of channels are picked up from the major operators in Japan ＊1as of January 2006, Number of main channels provided by nation-wide operators in Tokyo area ＊2as of January 2006, from web site of Jupiter Telecommunications Co., Ltd.; analog service in Tokyo area ＊3as of January 2006, Number of channels (CS/124/128 service), from semi-annual report of Sky Perfect Communications Inc. ＊4 total of paid and free titles and search indexes. Channels can be created as many as the number of keywords using keyword channel function. 40 Entertainment Revolution① Yahoo! Streaming/TV Bank Change in reception style～Personalized
【Household】【Individual】
WatchWatch provided provided content content Broadcast/VODBroadcast/VOD＝＝RichRich content content Search＝Active selection One-wayOne-way reception reception Search＝Active selection VideoVideo posting posting＝＝InteractiveInteractive /audience/audience participation participation
41 Entertainment Revolution① Yahoo! Streaming/TV Bank Change in reception style～Video Search
Web Search
Search within a site
Search from a large number of video sites, not just a specific site Shift from passive viewing style to user-driven viewing style 42 Entertainment Revolution① Yahoo! Streaming/TV Bank Change in reception style～Keyword channel
Automatically edit my channel by keywords
Search results continue to be played automatically.
Enter Keywords
43 Entertainment Revolution① Yahoo! Streaming/TV Bank Change in reception style～Posting
“Video Contest” is open from 1st Feb
【Travel report】【Pet Performance】
Rating Comments
Posting Comments
Interactive/participatory communication 44 Entertainment Revolution ② Online Game
(Unit: billions Growth of the Online Game Market of yen) 【Online game market forecast in Korea, Japan & China】
220
200 China High growth rate in Korea & China
180 Japan Korea 160
140 120 Online Game Market in Japan 100 Lead to full-scale growth 80
*Source 60 Korea: Korea Game White Paper 2005; Korea Game Development & Promotion Institute (KGDI) Japan: Actual figures for 2004 from Digital Content White Paper 2005 by Digital Contents Association of Japan. The forecast figures for 2005-2007 are from “IT market navigator 40 2006” by Nomura Research Institute, Ltd. China: Digital Content White Paper 2005; Digital Contents Association of Japan
20 Note: The figures of online game market in Korea from 2005 to 2007 are calculated by Company, based on the yearly growth rate of 20% for 2005-2007, which is stated in Korea Game White Paper 2005 by KGDI, 0 converted from KRW to JPY at 1KRW=0.12JPY. The figures for China online Actual Forecast game market are converted from USD to JPY at 1USD=118JPY. 04 05 06 07 45 Entertainment Revolution ② GungHo Online Entertainment SOFTBANK Group’s first to market advantage （10 thousand） 【Trends in the number of Gunho members】
120 No. of members: over 1.2 mil.*
Paid service from GungHo with 100 st December 1 , 2002 Japan’s largest 80 online game title
60 Fantasy Online RPG “ 40 RAGNAROK ONLINE”
20
*as of December 2005 0 02/12 05/12 46 Entertainment Revolution ② 4Gamer.net
（Unit: mil. SOFTBANK Group’s advantage in drawing customers PV/month） 【Page View Trend】 50
45 Game users No.1 40 continue to increase Online Game Info. Site 35
30 Monthly PV：48 mil. *
25
20
15
10
5
*as of January 2006 0 04/1 06/1 47 Entertainment Revolution ② MOVIDA INVESTMENT
SB ownership ratio: 49％ MOVIDA HOLDINGS’ Know-how ownership ratio: 100％ Online game Know-how Production/ Operation/ to support venture Development companies
“Online Game Revolution Fund Vol. 1” Capital: ¥10 billion Judgment Business corporation Advisory board of well Financial institution known producers; SOFTBANK Group Masanobu Endo (“Zebius”) and 7 other members
Objective: 60 titles in 5 years
48 Entertainment Revolution② MOVIDA ENTERTAINMENT Highly interactive news community site Joint venture with AFP and Creative link News community site “AFP BB News”
Launch of blog site “Actiblog”
・Provide world-wide topical news with pictures ・Able to transmit information provided by readers (message board)
・Enhance community functions 49 Entertainment Revolution④ Horse Racing
Launch of Horse Racing Portal “Odds Park” service planned Dec. 2005 2006 Spring (planned)
Acquisition of Internet sales of Horse racing portal “Odds Park” betting slips “D-net” ・Live broadcast on Yahoo! Streaming on more than 10 channels ・Able to deliver more than 10,000 races ・Partnership with Yahoo! JAPAN to help pull customers in
50 Entertainment Revolution⑤ Fukuoka Softbank HAWKS New reception style driven by IT technology Baseball Broadband TV K-chan! HAWKS
Multi-angle broadcasting with 30 cameras Online Archive & Live Broadcast
Old style
TV watching 51 Business Revolution① ICT* Platform IT Networks are now synonymous with traditional utilities ICT Platform Electricity (21st century revolution) （20th century revolution）
Authentification/ E-commerce billing Groupware
CRM Accounting Knowledge
From the power outlet, On the network, Power supply is available Best / appropriate application / anytime without limit. network environment is ready to serve.
Delivery of electricity Delivery of computing power and software *ICT=information & communications technology 52 Business Revolution① ICT Platform ~ ULTINA
“Wherever, whenever” “when needed, as much as needed”
Groupware Conference CRM/ERP
Security Software as a service E-commerce Service/ E-learning Authentification/ Knowledge Vertical interaction Content billing
Business Portal Consumer Service Service Network Convergence Platform ICT Platform Network function of IT systems Platform Automated network control control
Datacenter Network for Mobile corporate Network Network Network for infrastructure consumers Horizontal interaction “Whenever, wherever” seamless network connectivity 53 Business Revolution ① On-demand Platform (Key Plat) Launched Real-time resource on-demand service Zero initial cost, monthly fee only
Internet
Internet
Firewall Load sharing system
Web server Application server
Database server Software license
Storage Operational support Datacenter Facility
Launched on Feb 9th; Order received from BELLSYSTEM 24, Inc. for ASP service 54 Business Revolution ① VPN Solution
Numerous access networks enhanced with SOFTBANK BB’s nationwide Giga-bit backbone. Customers: approx. 5,000 large enterprises including ANA, Nissan, SAPPORO BREWERIES
Broadband Ether Access Dedicated ATM Access Line ADSL (NTT Ether) Ether Access
Broadband Urban Ether Metro Ether Access EW N Broadband (FLETS) EW Ether Access Other Ether N Managed Ether Access Ether Connect IP-VPN Crystal DC Connect VPN
2,300 enterprises Managed 1,000 enterprises Solutions New Service
W Wide Managed EW Broadband Ether access NE N Access Ethernet Ether Broadband (Bronze) Other Ether Ether Connect Ether Access Broadband Crystal Access (FLETS) Ether Access Urban Ether Data Center (Gold) Ether Access (NTT Ether) Metro Ether DC Connect
1,300 enterprises 55 Business Revolution ① Table-top Service “SAPURIBA” (Supplement Variety) Save time and resources for order operation and entertainment content Improves operational efficiency Increases sales (Improved price per customer / seat-turnover rate)
Usage Image Display Image
Acquired orders of 20,000 units
56 Business Revolution② Work Style Reform Freed from physical restrictions and system constraints, and transformed into a collaborative-type work style ProfessionalProfessional & CollaborativeCollaborative 【hierarchical organization】 【Project-type organization】
Project A
Project C Project B Office/wherever Digital-based information-sharing HRcorporate Sales Tec planning div. Div. Physical/system restrictions Collaboration-type work style ¾Fixed seats ¾Free address ¾Personal phone ¾Collaboration zone ¾Intranet, ¾Wireless LAN / IP telephony not connected to internet ¾Online conference ¾Online storage ¾Knowledge DB ¾Corporate portal
57 “Mobile” connects all revolutionary services Access broadband content anytime, anywhere, with no interruption and unbound mobility.
Content
OnOn aa triptrip CafeCafe Portal
Infrastructure
HOMEHOME
OFFICEOFFICE 58 SOFTBANK’s Goal game music sports Broad- casting finance business commerce publishing
Platform/portal
Infrastructure 59 Old Time Machine Business Model (InternetⅠ)
SOFTBANK deployed many business models from “a country of Future (U.S.A.)”, in “countries of legacy (e.g. Japan) ” . Many ventures were successful.
U.S.A. Japan
Incubation all over the world
60 New Time Machine Business Model (InternetⅡ)
Japan is now “a country of the future”
SOFTBANK is prepared to spread successful business models to the rest of the world.
World＝potential market 61 Compliance/Governance
62 Organizational chart illustrating the structure of corporate governance
ShareholderShareholder meeting meeting
Board Meeting BoardBoard of of auditors auditors Board Meeting 8 (2 external directors) 4 (3 external auditors) Manages and coordinates the Group PresidentPresident & & CEO CEO in a cross-sectoral manner
Group CEO Group CEO counselcounsel meetingmeeting
representative representative representative representative representative representative representative representative representative representative representative representative representative representative representative representative
Business Business Business Business Business Business Business Business Business Business Business Business Business Business Business Business Segment Segment Segment Segment Segment Segment Segment Segment Segment Segment Segment Segment Segment Segment Segment Segment
63 SOFTBANK Group Representative Oath System Carried out from Feb. 2005 Conducting and reporting periodic self-assessments covering more than 100 items related to verify the appropriateness of financial statements and internal controls.
Board Meeting
Internal Audit Department President & CEO
Group Management Department
Representative Representative Representative Oath System Oath System Oath System
representative representative representative Group Company Internal Audit
・Verifying timely disclosure to stakeholders ・Strengthening overall governance and risk management of the Group 64 SOFTBANK Group Charter Enactment: April 2001 Revision: Dec. 2005 SOFTBANK Group Charter
Governance Compliance
Guidelines Group Compliance Officer Concerning ‘Public & Investor Relations’ Concerning ‘Information of Group + Companies’ Compliance Code Concerning ‘Information Security’ Concerning ‘SOFTBANK Brand’ + Concerning ‘Internal Audit’ Hotline
GroupGroup Company Company GroupGroup Company Company (listed) (listed)
ComplianceCompliance Officer Officer ComplianceCompliance System System ++ ++ HotlineHotline HotlineHotline
Establish numerous Guidelines Promote prompt decision making and effective corporate activity 65 Organization Chart of Compliance System
Report on execution status BoardBoard Meeting Meeting
Support and advice PresidentPresident & & CEO CEO GCOGCO （ ･ ･ ） （GroupGroup･ComplianceCompliance･OfficerOfficer）
Head Office of Group Compliance Head Office of Group Compliance Report
Compliance System of the Group Company BoardBoard Meeting Meeting Report CCOCCO （ ・ ・ ） （ChiefChief・ComplianceCompliance・OfficerOfficer） GroupGroup ExternalExternal lawyer lawyer HeadHead Office Office of of Compliance Compliance PresidentPresident & & CEO CEO HotlineHotline Report Report Report
GroupGroup Company Company Betters of External lawyer Other Dept. Betters of Report and Counseling External lawyer Other Dept. each dept. HotlineHotline each dept.
Report and Counseling Report and Counseling Report and Counseling Report and Counseling
StaffStaff 66 Lifestyle Company in the 21st century
Amusement：broadcast, sports, game Housework：Auction, Online shopping
Travel： Business： Hotel, Airport Mobile office
Finance： Online trading
Healthcare： Home healthcare
School：Online education
Broadband available to all living people everywhere 67 SOFTBANK’s Fundamental Management Policy
EndeavoringEndeavoring toto benefitbenefit societysociety andand thethe economyeconomy andand maximizemaximize enterpriseenterprise valuevalue byby fosteringfostering thethe sharingsharing ofof wisdomwisdom andand knowledgeknowledge gainedgained throughthrough thethe ITIT revolution.revolution.
68 http://www.softbank.co.jp
This presentation contains forward-looking statements including statements regarding future events, future strategies or future performance of SOFTBANK CORP. that involves risks or uncertainties. In evaluating these statements, a recipient thereof should specifically consider various factors that could cause actual events or results to differ materially from those indicated, including without limitation; continuing decline in the general economic conditions, general market conditions, customer demand for products and services, increased competition, inherent risk in the international operations and other important factors.
69