Softbank Corp. Earnings Results for Six Months

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Softbank Corp. Earnings Results for Six Months Earnings Results for the Six Months Ended September 30, 2019 SoftBank Corp. November 5, 2019 Disclaimer This presentation is based on information available at the time it was made. Statements in the presentation that are not historical facts including, without limitation, our plans, forecasts and strategies are forward-looking statements. Forward-looking statements are subject to various risks and uncertainties, including, without limitation, general economic conditions, general market conditions, customer demand for products and services, increased competition, inherent risks in international operations and other important factors, which may cause actual results to differ materially from those expressed or implied in any forward-looking statement. Information regarding companies other than SoftBank Corp. and other companies within the group of SoftBank Corp. is quoted from public sources and others, and we have neither verified nor are we responsible for the accuracy of information. SoftBank Corp. expressly disclaims any obligation or responsibility to update, revise or supplement any forward-looking statement in any presentation material or generally to any extent. Use of or reliance on the information in this presentation is at your own risk. The information presented in this section regarding certain joint ventures and collaborations of SoftBank Corp., Vision Fund and SoftBank Group Corp. portfolio companies and investments has been selected on a subjective basis, is provided solely for illustrative purposes and does not purport to be a complete listing of all such collaborations or joint ventures. SoftBank Group Corp., SoftBank Corp. and the Vision Fund each have different strategies and objectives with respect to their investments and portfolio company operations. There is no guarantee that any joint venture will be consummated on the terms expressed herein or at all, or that the joint venture will be successful. All such plans are subject to uncertainties and risks, as well as investor consents and regulatory approvals, as applicable. References to such portfolio companies and investments should not be a recommendation of any particular investment. Revenue [JPY bn] 2,373.1 2,238.4 Yahoo Japan impact 20,000 1,794.4 444.0 15,000 Up 32% 10,000 (Post Yahoo adj, Up 6%) 5,000 (Note) 0 Actuals for FY2018 have been restated retrospectively to have consolidated Yahoo Japan Corporation from April 1, 2018. (On October 1, 2019, Yahoo Japan Corporation FY2018H1 FY2018H1 FY2019H1 transitioned to a holding company structure through a company split (absorption-type company split) and changed its trade name to Z Holdings Corporation. For convenience, (Prior to adj) (Post adj) Yahoo Japan is used within this materials) 2 Revenue [JPY bn] 2,373.1 2,238.4 477.8 Yahoo, others 2000.0 456.1 245.1 191.6 Distribution 1500.0 301.6 314.1 Enterprise Increased 1000.0 across all segments 1289.0 1336.0 Consumer 500.0 0.0 FY2018H1 FY2019H1 (Note) Actuals for FY2018 have been adjusted retrospectively to have consolidated (Post adj) Yahoo Japan Corporation from April 1, 2018 3 Revenue [JPY bn] 2,373.1 Non Consumer Mobile Consumer Diversified sources 20,000 Mobile 1,794.4 1,686.9 of revenue 36% 15,000 45% Yahoo 47% Japan Other 10,000 (Non Consumer Mobile) 5,000 64% 53% 55% 0 FY2017H117年度… 18FY2018H1年度上期 19FY2019H1年度上期 (Prior to adj) (Note) Consumer Mobile refers to mobile business in the Consumer business segment 4 Operating Income [JPY bn] 552.0 518.2 5,000 Yahoo Japan impact 443.3 74.9 4,000 Up 25% 3,000 (Post Yahoo adj, Up 7%) 2,000 1,000 0 FY2018H1 FY2018H1 FY2019H1 (Note) Actuals for FY2018 have been adjusted retrospectively to have consolidated (Prior to adj) (Post adj) Yahoo Japan Corporation from April 1, 2018 5 Net Income [JPY bn] 314.6 327.4 3,000 294.7 Yahoo Japan impact 2,500 19.9 2,000 Up 11% 1,500 (Post Yahoo adj, Up 4%) 1,000 500 0 (Notes) FY2018H1 FY2018H1 FY2019H1 Net Income: net income attributable to owners of SoftBank Corp. Actuals for FY2018 have been adjusted retrospectively to have consolidated Yahoo (Prior to adj) (Post adj) Japan Corporation from April 1, 2018 6 Consolidated Results [JPY bn] FY2018 FY2018 FY2019 YoY YoY % H1 H1 H1 (Prior to adj) (Post adj) (Post adj) (Post adj) Revenue 1,794.4 2,238.4 2,373.1 +134.7 +6% Operating 443.3 518.2 552.0 +33.8 +7% Income Net Income 294.7 314.6 327.4 +12.8 +4% (Note) Actuals for FY2018 have been adjusted retrospectively to have consolidated Yahoo Japan Corporation from April 1, 2018 7 FY2019 Profit Progress Toward Forecast [JPY bn] 1,200.0 62% Progress 1,000.0 Full Year800.0 890.0 68% Forecast Good progress 600.0 to annual forecast H1 552.0 400.0 480.0 200.0 327.4 0.0 Operating Income Net Income (Note) Full year forecast was announced on May 8, 2019 8 SoftBank Growth Strategy New Businesses AI / Technologies Beyond Carrier Cutting-edge business models Yahoo Japan Telecom Business Broadband subscriber growth New infrastructure Smartphone subscriber growth 99 Telecom Business 10 Consumer: Revenue [JPY bn] 1,289.0 1,336.0 1200.0 Sales of goods 297.4 308.0 and others 1000.0 190.5 Broadband 175.7 800.0 Up 4% 600.0 Mobile and Broadband drove the growth 400.0 805.3 848.2 Mobile 200.0 0.0 FY2018H1 FY2019H1 11 Smartphone Cumulative Subscribers [Mil] 23.03 21.09 20.00 15.00 Up 9% 10.00 (1.94 mil increase) 5.00 0.00 FY2016Q2 FY2017Q2 FY2018Q2 FY2019Q2 (Note) Including enterprise subscribers 12 Comply with amended Telecommunication Business Act Effective from October 1, 2019 No fixed-term for contracts No cancellation fee In addition to unbundle Unbundled Already Unbundled Price reduction in place + Plans* Plans* Higher data since Sep 2018 in Oct 2019 capacity *Unbundled plans: price plans that separate service fees and handset payments 13 50GB+ data plan Unbundled Plans already in place Since September 2018 14 Comparison of Large Capacity Data Plans (Prices for first year enrollment) Remain competitive even after other players reduced prices JPY6,380 JPY5,480 JPY5,480 JPY5,380 JPY5,380 JPY5,380 JPY4,980 JPY4,980 JPY4,480 JPY4,480 JPY3,980 JPY3,480 SoftBank A B SoftBank A B SoftBank A B SoftBank A B One Three Three Four person people people people (Notes) As of November 1, comparison of first year price plans from each company’s web site (annual amount divided by 12 months). Comparison of 30GB date plan by company A, unlimited data plan + video services by company B, and Ultra Giga monster + by SoftBank. 15 October 2019 Unbundled Plans introduced 16 Y!Mobile New Plans Price Reduction Capacity Increase Smartphone Basic Plan S Plans Monthly data capacity Monthly fee after 14 months Smartphone basic plans basic Smartphone S 2GB 3GB Max M 12% 6GB 9GB DOWN R 14GB (Note) Price reduction refers to the comparison of “Smartphone Basic Plan S” (previous “Smartphone Plan S”) after Home Broadband bundle discount 17 Customer Satisfaction for Prices Ultra Giga Monster Plus (50GB+) plan All smartphone price plans All smartphone price plans Satisfied Satisfied Satisfied 96% 94% 94% Question: At what level are you satisfied with the current pricing? (Note) Survey by the Company in September 2019. Survey for customer satisfaction (SoftBank: n=900, Y!mobile: n=900, LINE MOBILE: n=1,700) 18 Broadband Cumulative Subscribers [Mil] 7.76 7.38 7.00 6.00 5.00 4.00 3.00 6.16 5.50 2.00 Up 12% 1.00 0.00 FY2016Q2 FY2017Q2 FY2018Q2 FY2019Q2 (Note) “SoftBank Air” subscribers are included in “SoftBank Hikari” subscribers 19 Enterprise: Revenue [JPY bn] 301.6 314.1 300.0 78.4 Business solution 65.0 and others 250.0 200.0 105.9 97.6 Fixed-line Up 4% 150.0 Business solution drove the growth 100.0 130.7 138.1 Mobile 50.0 0.0 FY2018H1 FY2019H1 20 Enterprise: Revenue of Business Solution and Others [JPY bn] 78.4 70.0 65.0 60.0 50.0 Up 21% 40.0 RPA 30.0 Robot Network IoT 20.0 Cloud 10.0 Digital Marketing AI 0.0 Security FY2018H1 FY2019H1 21 Centimeter Level Positioning Service Service image GNSS Satellite High precision 3,300 Deviation location information locations few cm nationwide Projects in progress with c.100 companies Positioning info Detection data Correction info transmission SoftBank proprietary Position correction User reference point distribution server (Note) GNSS(Global Navigation Satellite System)refers to all kinds of satellite systems, such as QZSS (Quasi-zenith satellite system), GPS, GLONASS, Galileo and others 22 Centimeter Level Positioning Service Demonstration experiment with Yanmar Agri Automatic operation of agricultural machinery with accurate position information support Deviation No unplowed field missing 0.89cm (Note) Position deviation: measured when agricultural machinery is in stationary. 23 Drone Inspection Service Nationwide infrastructure inspection application Plan to install centimeter level positioning service <Target facility examples> Service started Power lines Bridges Railways November 1 Detecting abnormalities with drone aerial photography Power plans Construction site Arena Bolt Tree Cracks damages fallings 24 5G Pre-services 5G Antenna International Basketball Games Providing 5G Pre-service VR camera 5G service installed under hoop coverage on-site 26 We would like to express our heartfelt condolences to everyone who has suffered from the typhoon. 27 SoftBank Disaster Response Activities 28 Network Response Plans for Disasters 1 2 3 Strengthen nationwide Action plans for base Various solutions for network centers station power outrage recovery Important sites in operation for more than Action plans prepared for power outage Mobile base station vehicles / Power supply 48 hours during power outrage of more than 24 hours vehicles / Tank trucks / Portable base stations / Fuel storage in major regions nationwide Satellite antennas / Balloons Regular drills with Self-Defense Forces, Japan Coast Guard and local governments 29 Disaster Response: Recovery Activities Typhoon No.
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