Earnings Results for the First Quarter ended June 30, 2007 (Q1/FY2008)
August 8, 2007
SOFTBANK CORP. March 12, 2010 Version Due to protection of rights, some of the photos and images included at the time of publication have been modified or revised. “FY2008” and “FY08” refer to the fiscal year ending March 31, 2008 in this material. Q1/FY2008 Summary of Consolidated Earnings Results
2 Q1/FY2008 Summary of consolidated earnings results
Operating income 78.7 54.3 +24.3
Ordinary income 51.1 25.9 +25.1 Income before income taxes and 58.4 29.3 +29.1 minority interests Net income 25.1 1.4 +23.7
*Operating results of SOFTBANK MOBILE Corp. (former Vodafone K.K.) were consolidated from May 1, 2006. 3 Q1/FY2008 Highlight
SoftBank NTT DoCoMo KDDI 530 530 520 520 500 LargeLarge increaseincrease
240
30
0 Q1/07 Q1/08 Q1/07 Q1/08 Q1/07 Q1/08
4 Q1/FY2008 Highlight
45% increase
54.3 50 LargeLarge increaseincrease
YoY SOFTBANK +45%↑ KDDI +16%↑ NTT DoCoMo -25%↓ 0 Q1/07 Q1/08 5 Consolidated net sales (Quarterly)
600
494.2 500
400 Q1/08 663.0bn JPY 300 258.6
200 IncreasedIncreased 34%34% YoYYoY
100
0 Q1/06 Q1/07 Q1/08 *Operating results of SOFTBANK MOBILE Corp. (former Vodafone K.K.) were consolidated from May 1, 2006. 6 Consolidated net sales (Quarterly) 700 663.0
600
500 494.2 389.0 Mobile Communications 400 (SOFTBANK MOBILE) 231.5
300 Others 258.6 e-Commerce 200 58.5 55.8 58.2 Internet Culture 34.4 44.4 51.8
100 87.3 81.8 77.8 Fixed-line Telecommunications (SOFTBANK TELECOM)
61.0 62.7 64.3 BB Infrastructure 0 Q1/06 Q1/07 Q1/08 *Operating results of SOFTBANK MOBILE Corp. (former Vodafone K.K.) were consolidated from May 1, 2006. 7 Consolidated EBITDA (Quarterly)
104.3 Mobile Communications 100 92.4 (SOFTBANK MOBILE) 92.4bn JPY 55.8 Q1/08 50 149.7bn JPY 48.5 57.3 19.5 IncreasedIncreased 44%44% YoYYoY
0 Q1/06 Q1/07 Q1/08 EBITDA： Operating Income (loss) +depreciation and amortization, loss on disposal of fixed assets included in operating expenses 8 Consolidated operating income (Quarterly)
70
60 54.3 50 Q1/08
40 78.7bn JPY
30
20
10 -3.1 IncreasedIncreased 45%45% YoYYoY 0
-10 Q1/06 Q1/07 Q1/08
*Operating results of SOFTBANK MOBILE Corp. (former Vodafone K.K.) were consolidated from May 1, 2006. 9 Consolidated operating income (Quarterly) 90
80 78.7
70
60 54.3 43.5 Mobile Communications 50 (SOFTBANK MOBILE) 43.5bn JPY 40 27.2 Q1/08 30 78.7bn JPY 20 27.0 35.2 10 IncreasedIncreased 45%45% YoYYoY -3.1 0 Q1/06 Q1/07 Q1/08 -10 *Operating results of SOFTBANK MOBILE Corp. (former Vodafone K.K.) were consolidated from May 1, 2006. 10 Consolidated ordinary income (Quarterly)
51.1 50
40
30 25.9 Q1/08 51.1bn JPY 20
10 IncreasedIncreased 97%97% YoYYoY 0 Q1/06 Q1/07 Q1/08
-10 -13.0 -20 11 Consolidated net income (Quarterly)
20
10 Q1/08 25.1bn JPY 1.4 0 Q1/06 Q1/07 Q1/08 18X18X YoYYoY -10 -11.1
-20 12 Consolidated net income (Quarterly)
Ordinary income 5511..11 25.9
Gain on sale of investment 3.3 securities 4.6 Special income, net 7.2 Dilution gain from changes in equity interest 2.8 Income before income taxes and minority 5858..44 29.3 interests Income taxes: 2.8 10.1 Current Income taxes: 20.0 9.2 Primarily SOFTBANK Deferred MOBILE Minority interests 10.3 8.5 Primarily Yahoo Japan Net income 2525..11 1.4 13 Consolidated cashflow (Quarterly)
Q1/FY08Q1/FY08
Corporate tax (29.7) Operating Interest paid (26.3) (27.4) Inventory increase (32.7) cashflow Installment receivables increase (75.7)
Investing Purchase of property & equipment & (111.5) cashflow intangibles (92.9) Revenue from securitizing installment Financing receivables +88.1 218.4 cashflow Revenue from leasing newly acquired facilities +149.8
14 EBITDA by segment (Quarterly)
140
120 104.3 Mobile Communications 100 (SOFTBANK MOBILE)
80
60 BB Infrastructure Fixed-line Telecommunications 40 (SOFTBANK TELECOM) 19.5 Internet Culture 20 (Yahoo Japan) e-Commerce 0 Others Q1/06 Q1/07 Q1/08 -20 15 Operating income by segment (Quarterly)
90 78.7 Consolidated Operating income 70 54.3 Mobile Communications 50 (SOFTBANK MOBILE)
BB Infrastructure 30 Internet Culture (Yahoo Japan) 10 e-Commerce -3.1 Fixed-line Telecommunications (SOFTBANK TELECOM) -10 Others
Q1/06 Q1/07 Q1/08 -30 16 Cash position
700 Unused portion of credit line facility Cash & cash equivalents 600 119.0 500
69.0 400
300 485.9 386.2 200
100
0 March/ 2007 June/ 2007
17 Net interest-bearing debt
2,000
1,651.9 1,622.2 1,500 Investment by SOFTBANK and Yahoo Japan in SBM: 320.0 bn JPY 1,000 SBM Net interest- bearing debt (Non- 531.6 recourse) including 500 454.6 SBM loan balance of: 356.1 389.0 CB 1,342.1 bn JPY
0 Net interest- Net interest- Net interest- Net interest- bearing debt bearing debt bearing debt bearing debt excl. SBM related to excl. SBM related to related SBM related SBM e/o March 05 e/o March 06 e/o March 07 e/o June 07
SBM: SOFTBANK MOBILE Corp. 18 Procurement through securitization of installment sales receivables Amount 88.1bn JPY procured Procurement June 2007 time
Moody’s: Aaa (program for institutional investors 65.1bn JPY） Rating R&I : A (program for individual investors 23.0bn JPY) Applicable Receivables of installment sales of mobile handsets receivables Use of funds Repayment of existing debt and capital expenditure, etc. Accounting The procured funds are recorded as “borrowings” procedures
• Improve working capital gap incurred by accumulation of installment sales receivables • Reduce procurement cost as result of high credit rating 19 Ratings
JCR (AA-) AA－/AA3 A+/A1 Mobile Communications business securitization ratings S&P (A) A/A2 (WBS structured rating (senior portion)) Moody’s (A3) A－/A3 BBB+/Baa1 JCR (BBB) BBB/Baa2
BBB－/Baa3 Jun 2007 S&P raised BB+/Ba1 BB/Ba2 Moody’s (Ba2) BB－/Ba3 S&P (BB) B+/B1
2003 2004 20052006 2007
JAPAN TELECOM CO., LTD. Vodafone K.K. acquisition acquisition 20 BusinessBusiness ProgressProgress
21 Net addition share
100% No.No. 11 inin netnet additionaddition shareshare forfor 33 consecutiveconsecutive monthsmonths 80% (May to July 2007)
60% SoftBank July 2007 net addition share 40% KDDI 16%
20% NTT DoCoMo 38% 45%
0% Vodafone
April April April July 2005 2006 2007 -20% Source： Telecommunications Carriers Association (Excluding EMOBILE) 22 Net addition (k) 600 No.No. 11 inin netnet additionsadditions forfor
500 33 consecutiveconsecutive monthsmonths (May to July 2007)
400
300 SoftBank 225k
200 KDDI 191k
100 NTT DoCoMo 81k
0 Vodafone
April April April July 2005 2006 2007 -100 Source： Telecommunications Carriers Association (Excluding EMOBILE) 23 Net addition (excl. prepaid) (k) 600 OverwhelmingOverwhelming positionposition
500 asas No.No. 11 inin netnet additionsadditions (May to July 2007)
400
300 SoftBank 256k
200 KDDI 182k
100 NTT DoCoMo 80k
0 Vodafone
April April April July 2005 2006 2007 -100 Source： Telecommunications Carriers Association (Excluding EMOBILE) 24 Cumulative subscribers
(m) ShiftShift toto 3G3G isis 18 16.67 acceleratingaccelerating furtherfurther 16 15.11 14.98 15.27 14
12 2G 10 e/o July 2007 8 3G subscribers: 99.853m.853m 6 3G ratio:59.1%59.1% 4
2 3G
0 April April April April 2004 2005 2006 2007 25 Reasons for being No.1 in net additions
DramaticDramatic improvementimprovement inin 44 areasareas Marketing (Price/ Brand)
Content
Handsets
Network 26 Network: Base stations
(BS)
46,000 1 August 2007:
Achieved 46,00046,000 BSBS
22,000 MoreMore thanthan doubleddoubled afterafter acquisitionacquisition
Q1 Q2 Q3 Q4 Q1 1 Aug FY07 FY08 27 Network: Towards perceived improvement Users’ sense of improving network (during previous 2-3 months)
WithWith June June 2006 2006 as as 100: 100: ImprovedImprovedImproved bybyby22 27%7%7% !!!
100 IncreaseIncrease inin usersusers’’ sensesense ofof improvingimproving networknetwork
Source: Research by an external institution June June 2006 2007 28 Handsets: Comparison of model variety (models) 30 SoftBank NTT DoCoMo 27 KDDI
23 No.No. 1!1! 20
16 16 12 10 10
0 Mar to Aug Mar to Aug Mar to Aug Mar to Aug Mar to Aug Mar to Aug 2006 2007 2006 2007 2006 2007
29 Handsets: Comparison of color variety (colors) SoftBank NTT DoCoMo KDDI 100 99
80 OverwhelminglyOverwhelmingly 71 No.No. 1!1! 61 60 49 39 40 31
20
0 Mar to Aug Mar to Aug Mar to Aug Mar to Aug Mar to Aug Mar to Aug 2006 2007 2006 2007 2006 2007
30 Handsets: Last year’s lineup (targeted layer) LastLast yearyear optionsoptions werewere limitedlimited 60’s and 2006 summer models (3G) over
50’s Slim
seg s ne- ines 40’s O Bus
ic Mus 30’s
804NK 20’s 705SH 905SH
10’s 705T
31 Handsets: This summer’s lineup (targeted layer) LineupLineup suitssuits allall generationsgenerations 60’s and le over Simp 50’s GENT 812SH s -seg One pec 40’s igh-s ® tion H ows rdina Wind Coo Slim 30’s 912T
20’s 814SH 815SH X01T 810P 814T 805SC 912SH FULLFACE X02HT Display prevented due to protection of rights. 913SH 10’s 816SH fanfun. 815T 子供
©1976, 2007 SANRIO CO., LTD. APPROVAL No.S8051713 PEANUTS (C) United Feature Syndicate, Inc. TV TOKYO Broadband Entertainment, Inc. 32 Handsets: Overwhelming “thin & light”
Summer 2007 models 11(mm)
ThinThin 13
SoftBank NTT DoCoMo 15 au
17 150 130 110 90 (g)
19 LightLight
21
23
*excl. smart phones 25 33 Handsets: Launch of major summer model: 913SH
FullFull--screenscreen stylestyle LaunchedLaunched onon JulyJuly 2828!!
34 Handsets: Launch of major summer model: 815T
LaunchedLaunched today!today! UltimateUltimate fashionfashion mobilemobile
Display prevented due to protection of rights.
©1976, 2007 SANRIO CO., LTD. APPROVAL No.S8051713 PEANUTS (C) United Feature Syndicate, Inc. 35 TV TOKYO Broadband Entertainment, Inc. Content: Introduction of Yahoo! Keitai TheThe interfaceinterface thatthat approx.approx. 5050 million*million* usersusers areare familiarfamiliar withwith
(1) Search window
(2) My Yahoo! Display prevented due to protection of rights.
(3) Directory
*Number of Yahoo! JAPAN’s unique customers, source: Press release of Yahoo Japan Corporation 36 Content: Access
Page views
Link to Yahoo! JAPAN set in top page ComparedCompared toto thethe endend ofof JuneJune 20062006 growthgrowth isis
approx.approx. 6666 timestimes
*Page views of Yahoo! JAPAN’s top page through mobile devices Till Sep 30th: Yahoo! Mobile from Jan 10th: Yahoo! Keitai 6/1 7/1 10/1 8/4 2006 2007
37 Content: Improved accessibility OneOne clickclick toto thethe Internet!Internet! PC Browser Display prevented due to protection of rights. start-up
Display prevented Click! due to protection of rights.
Mobile
Y! Button
Display prevented due to protection of rights. Click!
38 Price Plan: Basic strategy
Installment sales method Handset =Low=Low initialinitial costcost
(New Super Bonus)
Communication New price plans =Extremely=Extremely reasonablereasonable
White Plan / Double White
39 Price Plan: Penetration of installment sales
New Super Bonus application (m) 6
5
(New Super Bonus) 4
3 6.306.30 millionmillion
2
1
0 Oct Nov Dec Jan Feb Mar Apr May Jun Jul *As of 7 August 2007 2006 2007 40 Price Plan: Strong support from customers
(m) Application 7 WhiteWhite PlanPlan 6 5 6.90m6.90m 4
3 WhiteWhite PlanPlan DoubleDouble WhiteWhite 2
1 1.70m1.70m DoubleDouble White White 0 *As of 7August 2007 2007/1 2007/3 2007/8 41 Price Plan: Price image
(%) Image of reasonable price 60 SoftBank NTT DoCoMo au 50 LeaderLeader inin priceprice imageimage
40
30
20
10
Source: Research by an external institution 0 Jan Feb Mar Apr May Jun Jul 2007 42 Price Plan: Price experience
Price evaluation by users that changed operators, after Mobile Number Portability
“Became more expensive” “Became “Became “Became more expensive” more expensive” “Became “Became “No change” economical” economical” 40.6% 34.9% “Became economical” 74.6%74.6% “No change” “No change”
SoftBank au NTT DoCoMo
Source: Survey result, June 2007 by Brand Research Institute, Inc. 43 Price Plan: Family subscriber ratio 70%70% joinedjoined WhiteWhite PlanPlan 80% FamilyFamily DiscountDiscount 2424 70%
60%
50%
40%
30% May 10 Announced the launch of Display prevented “White Plan Family Discount 24” due to protection of rights. 20%
10%
0% Jan Feb Mar Apr May Jun Jul 2007
44 Brand: Intention to subscribe Candidate operator （Up-down ratio with July 2006 as 100)
SoftBank
100 au NTT DoCoMo
Source: Research by an external institution 0 July 2006 June 2007 45 Sales structure: Expansion of shops
(shops) 2,500 Number of SoftBank Shops 2,310 IncreasedIncreased byby 2,000 approx.approx. 25%!25%! (Compared to April of previous year) 1,500
Display prevented due to protection of rights. 1,000
500 Display prevented due to protection of rights.
0 Apr 06 Jul 07 46 Sales structure : Expansion of counters
(counters) 10,000 Approx. Shop counters 9,000 IncreasedIncreased byby 8,000 approx.approx. 45%!45%! (Compared to April of previous year) 6,000
4,000 Display prevented due to protection of rights.
2,000 Display prevented due to protection of rights.
0 Apr 06 Jul 07 47 Sales structure : Group synergy SoftBankSoftBank HAWKSHAWKS contributecontribute toto customercustomer acquisitionsacquisitions
80% Net addition share in Kyushu region SoftBank 70% Overwhelmingly No.1
60% 67% share! (July 2007) 50%
40% Display prevented due to protection of rights. 30% KDDI
20% Display prevented due to protection of rights.
10% NTT DoCoMo 0% Mar Jun Sep Dec Mar Jun -10% 2006 2007 48 ResultsResults
49 Significant improvement of brand image
(%) SoftBank users’ image of SoftBank 70
60 Improving BrandBrand recognitionrecognition 50 Worsening isis improvingimproving
40
30
20
10
Source: Research by an external institution 0 Nov- Dec- Jan- Feb- Mar- Apr- May- Jun- 06 06 07 07 07 07 07 07 50 Significant decrease in churn rate
4.0% 3G Churn rate
3.0%
2.0%
Q1/2008 1.0% 1.07%
0.0% Q4/2006 Q4/2007 Q1/2008 51 ARPU
(JPY)
7,000
5,870 5,930 5,840 6,000 5,600 5,590 5,700 5,560 5,210 5,000 5,000
4,000 4,540 4,540 4,510 4,260 4,230 4,320 4,230 3,830 3,590 Voice 3,000
2,000 Data
1,000 1,330 1,390 1,330 1,340 1,350 1,380 1,330 1,380 1,410
0 Q1/06 Q2 Q3 Q4 Q1/07 Q2 Q3 Q4 Q1/08
52 Customer monthly charge (reference) (including installment charge) (JPY)
7,000
5,870 5,930 5,840 6,000 5,600 5,700 5,590 5,580 5,430 5,480
5,000
4,000 4,540 Installment 4,540 4,510 4,260 4,230 4,320 4,230 3,830 3,590 charge 3,000 Voice
2,000 Data
1,000 1,330 1,390 1,330 1,340 1,350 1,380 1,330 1,380 1,410
0 Q1/06 Q2 Q3 Q4 Q1/07 Q2 Q3 Q4 Q1/08
53 MOU
Q1/ 2008 Results
UsageUsage ofof newnew priceprice plansplans isis muchmuch higherhigher thanthan olderolder plansplans
Older plans White Plan Double White 54 Intention to continue using
(%) 8181%% IntentionIntention toto continuecontinue usingusing increasingincreasing significantlysignificantly 75 72
64 60 Source: Research by an external institution 2006/22006/11 2007/6 55 Phases from FY2008 on
InitialInitial phasephase toto growthgrowth phasephase
Current position Harvesting stage
•Stable growth expansion Growth stage •Revenue & profit growth
•Customer base expansion •Launch new services Initial stage •Acquisition •Business restructuring •Concentrated investments
FY2007 in 5 years in 10 years 56 Phase of FY2008 Aim to maximize future revenue through expansion of customer base
Revenue
Service
Service
Customer base
Scale 57 SOFTBANK’s goal No.No. 11 inin infrastructure,infrastructure, platform/portal,platform/portal, andand contentcontent commerce business education game broadcast sports publish music
Platform/ Portal
Infrastructure 58 Content Rights management business
ProvidingProviding popularpopular contentcontent bothboth nationallynationally andand overseasoverseas
Football Fighting sports
Display prevented due to protection of rights. Display prevented due to protection of rights.
Movie Distribution rights for mobile and PC use, Broadcasting rights for overseas Distribution rights for Display prevented due to protection of rights. “Toki wo Kakeru mobile and PC use Shoujo” Distribution rights for mobile and PC use (content owned through production committee) 59 Content Examples of rights management ObtainObtain aa widewide rangerange ofof rightsrights andand managemanage thesethese globallyglobally Fighting sports event “Dynamite USA” (hosted by FEG USA) Business sponsor
rights Display prevented due to protection of rights. PPV (Pay-Per-View) Fighting sports events which are among the world’s largest attended events Public transmission rights Ticket sales rights Broadcast rights (world-wide) 60 Content Video business: Yahoo! Streaming
Number of unique users (m) 12 Users exceeded Video service on Yahoo! JAPAN*
10 11 million! 8 No.1No.1 inin Japan!Japan! 6
4 G service by U company
2 Source: Access from home, searched by NetRatings Japan Inc 0 * Yahoo! Streaming, Yahoo! Movie, Yahoo! News, etc. Dec Mar Jun Sep Dec Mar Jun 2005 2006 2007 61 Content CM Museum JapanJapan’’ss biggestbiggest InternetInternet sitesite specializingspecializing inin TVTV commercialscommercials
Service launched on July 31
In order of the Japanese alphabet 62 Content Yahoo! Streaming (beta)
IntroduceIntroduce popularpopular PCPC contentcontent toto mobilemobile inin aa seriesseries
Add new category “Entertainment and Korea Entertainment news interview” on July 24!
Display prevented Display prevented due to protection of rights. due to protection of rights.
AP Entertainment news Entertainment China Display prevented due to protection of rights.
Display prevented Display prevented due to protection of rights. due to protection of rights.
63 Content Yahoo! Streaming X Fukuoka SoftBank HAWKS
StreamingStreaming toto bothboth PCPC andand mobilemobile
Display prevented due to protection of rights.
Display prevented Display prevented due to protection of rights. due to protection of rights.
Live broadcast of hosted games Distribute 1 minute digest of previous day’s hosted game 64 Now: ContentContent && servicesservices focusedfocused onon PC,PC, bothboth inin termsterms ofof qualityquality andand quantityquantity
Mobile
Display prevented due to protection of rights.
Display prevented due to protection of rights. PC
65 Future: ContentContent && servicesservices willwill bebe providedprovided seamlesslyseamlessly
Display prevented due to protection of rights.
Display prevented due to protection of rights.
Display prevented due to protection of rights.
Display prevented due to protection of rights.
66 Future: SOFTBANKSOFTBANK willwill leverageleverage itsits strengthstrength toto thethe maximummaximum
Display prevented due to protection of rights.
Display prevented due to protection of rights.
Display prevented due to protection of rights.
Display prevented due to protection of rights.
67 Lifestyle Company in the 21st Century
Broadband available to all living people everywhere
68 Make mobile in Japan more fun
69 Make broadband in Japan more fun
70 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 revolutionrevolution
71 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.
72 FY2008/Q1 Appendix to the Earnings Results (Amounts less than one billion yen are omitted. / Net Sales to external customers ） FY2006 Business segment unit FY2007 FY2008 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Net sales bn JPY 231.5 350.3 426.6 422.2 389.0 Operating income bn JPY 27.2 29.3 56.9 42.2 43.5
Mobile Communications（*1） EBITDA bn JPY 55.8 73.6 104.0 87.9 92.4 (Core company : SOFTBANK MOBILE Corp.） Operating margin ％ 11.7% 8.3% 13.2% 9.9% 11.1% EBITDA margin ％ 24.0% 20.9% 24.2% 20.6% 23.6% Total number of subscribers thousand 15,240 15,307 15,497 15,909 16,441 Net sales bn JPY 61.0 63.9 71.3 70.9 62.7 64.6 65.3 65.9 64.3 （*2） Operating (loss) income bn JPY (4.4) 3.4 9.3 12.3 5.4 6.1 7.7 7.3 8.6 （*2） Impact of the sale of the ADSL modem rental business bn JPY ＋＋7.6 7.0 (0.8) (0.1) (0.4) ＋ 0.3 (1.1)
Operating income excluding the impact of the sale of the ADSL bn JPY 1.7 5.3 6.3 6.3 8.1 7.0 9.8 modem rental business Broadband Infrastructure EBITDA (Core company : BB TECHNOLOGY Corp.) bn JPY 3.0 11.4 16.3 18.1 11.8 12.6 15.4 15.7 15.9 Operating margin ％ - 5.4% 13.1% 17.3% 8.7% 9.4% 11.5% 10.9% 13.2%
Operating margin excluding the impact of the sale of the ％ 2.6% 7.8% 9.4% 9.2% 11.5% 10.0% 14.1% （*2） ADSL modem rental business EBITDA margin ％ 4.9% 17.7% 22.8% 25.4% 18.7% 19.2% 22.9% 23.2% 24.3% Number of Yahoo! BB ADSL lines installed thousand 4,889 4,972 5,007 5,049 5,089 5,146 5,161 5,164 5,134 Net sales bn JPY 87.3 81.5 88.6 89.7 81.8 84.3 81.4 84.4 77.8 Operating (loss) income bn JPY (14.0) (12.2) (1.7) 2.9 1.2 (0.9) (2.6) (0.6) (0.1) EBITDA bn JPY (1.8) 0.0 9.1 14.2 12.6 10.2 8.9 10.7 11.1 Fixed-line Telecommunications（*3） （Core company : SOFTBANK TELECOM Corp.） Operating margin ％ - - - 3.2% 1.4% ---- EBITDA margin ％ - 0.0% 10.2% 15.4% 14.3% 11.0% 9.5% 10.9% 12.3%
number of lines installed for direct connection voice services（*4） thousand 540 683 764 848 1,020 1,077 1,136 1,221 1,257 Net sales bn JPY 34.4 36.7 42.0 42.2 44.4 45.2 49.4 52.3 51.8 Operating income bn JPY 16.4 17.1 19.2 21.2 21.6 22.7 25.0 27.1 27.1 Internet Culture EBITDA bn JPY 17.9 18.8 21.2 23.5 23.9 25.2 27.6 29.4 29.6 （Core company : Yahoo Japan Corporation） Operating margin ％ 47.6% 46.5% 45.6% 50.3% 48.5% 48.7% 50.0% 51.5% 51.4% EBITDA margin ％ 51.9% 51.0% 50.4% 55.6% 53.6% 54.1% 55.2% 55.7% 56.1% Net sales bn JPY 58.5 65.1 68.4 80.6 55.8 61.1 61.2 78.5 58.2 （*5） e-Commerce Operating income bn JPY 0.7 0.8 1.4 1.8 1.4 1.3 2.0 1.8 1.1 Net sales bn JPY 17.2 16.8 16.8 14.8 17.6 20.1 18.0 18.1 21.7 Others Operating (loss) income bn JPY (0.6) (0.3) (3.7) 0.0 (0.7) 0.5 (4.0) (0.5) (0.6) Elimination or corporate bn JPY (1.2) (1.2) (1.0) (4.0) (2.0) (1.0) (0.3) (3.5) (0.9) Net sales bn JPY 258.6 264.1 287.4 298.4 494.2 625.9 702.1 721.8 663.0 Operating (loss) income bn JPY (3.1) 7.5 23.5 34.3 54.3 58.1 84.7 73.7 78.7 Total EBITDA bn JPY 19.5 30.7 44.7 54.9 104.3 124.0 154.0 143.0 149.7 Operating margin ％ - 2.9% 8.2% 11.5% 11.0% 9.3% 12.1% 10.2% 11.9% EBITDA margin ％ 7.5% 11.6% 15.6% 18.4% 21.1% 19.8% 21.9% 19.8% 22.6% *1 : SOFTBANK CORP. ("SOFTBANK") acquired SOFTBANK MOBILE Corp.. (former Vodafone K.K., "SOFTBANK MOBILE") in April 2006, and the Mobile Communications business segment was established at this time. The financial results of SOFTBANK MOBILE were consolidated from May 2006 on. *2 : SOFTBANK sold the ADSL modem rental business in December 2005, therefore the modem rental fee revenue has decreased. However, through the subcontract with BB Modem Rental Inc., commission fee revenue occurs. The "Impact of the sale of the ADSL modem rental business" is based on management accounting, not on financial accounting. *3 : SOFTBANK aquired JAPAN TELECOM CO., LTD. (current SOFTBANK TELECOM Corp., "SOFTBANK TELECOM") in July 2004, the Fixed-line Telecommunications business segment was established in the second half of 2004.
*4 : SOFTBANK TELECOM started the "Otoku-line " direct fixed-line voice service. In June 2006, SOFTBANK TELECOM acquired the direct connection voice services of HEISEI DENDEN CO., LTD. *5: SOFTBANK applied the “Practical solution on accounting for revenue recognition of software” from FY2007/Q1.