Earnings Results for the Fiscal Year ended March 31, 2008
May 8, 2008 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. Winners in the mobile Internet market are winners in the Internet market
Winners in Asia are winners in the World
2
1. Towards No.1 Mobile Internet Mobile business: No.1 net additions in FY2007
2. Largest consolidated results in company history
3. Expanding trend in operating cash flow
3 FY2007 Summary of Consolidated Earnings
FY07 FY06 YoY (Apr/07-Mar/08) (Apr/06-Mar/07)
Net Sales 2,776.1 2,544.2 +231.9
EBITDA 626.6 525.4 +101.2
Operating income 324.2 271.0 +53.2
Ordinary income 258.6 153.4 +105.1
Income before income taxes and 225.8 208.5 +17.3 minority interest Net income 108.6 28.8 +79.8
Note: Operating results of SOFTBANK MOBILE Corp. (former Vodafone K.K.) were consolidated from May 1, 2006 4 FY2007 Highlights
2,500
2,000
1,480 1,500
1,000 700
500
- FY06 FY07 FY06 FY07 FY06 FY07 SBM NTT DoCoMo KDDI 5 FY2007 Highlights
2,500 2,150 2,000 ++3.83.8 timestimes YoYYoY 1,480 1,500
1,000 700 780
500
- FY06 FY07 FY06 FY07 FY06 FY07 SBM NTT DoCoMo KDDI 6 FY2007 Highlights
Operating Income (annual)
300 271.0
200
100
0 FY06 FY07 7 FY2007 Highlights
Operating Income (annual)
324.2
300 271.0 IncreasedIncreased byby
200 20%20% YoYYoY
100
0 FY06 FY07 8 Consolidated Earnings Results
9 Consolidated Net Sales (annual)
3.0
2.0 FY07 2.7t JPY 1.10 LargestLargest inin 1.0 0.83 historyhistory 0.51
0.0 FY03 FY04 FY05 FY06 FY07
Note: Operating results of SOFTBANK MOBILE Corp. (former Vodafone K.K.) were consolidated from May 1, 2006 10 Net Sales by Segment (annual)
2,000 1,618.9 Mobile Communications (SBM) 1,430.8
1,500 Others
1,000 e-Commerce 256.9 255.6 191.5 243.8 Internet Culture (Yahoo Japan) 500 332.1 324.7 Fixed-line Telecommunications (SOFTBANK TELECOM) 258.8 251.3 Broadband Infrastructure 0 FY06 FY07
Note: Operating results of SOFTBANK MOBILE Corp. (former Vodafone K.K.) were consolidated from May 1, 2006 11 Consolidated EBITDA (annual) 700
400 FY07:
300 626.6bn JPY
200 149.9 LargestLargest inin
100 historyhistory 44.0
0 -22.0 -100 FY03 FY04 FY05 FY06 FY07
Note: Operating results of SOFTBANK MOBILE Corp. (former Vodafone K.K.) were consolidated from May 1, 2006 12 EBITDA by Segment (annual)
Note: Operating results of SOFTBANK MOBILE Corp. (former Vodafone K.K.) were consolidated from May 1, 2006 13 Consolidated Operating Income (annual)
400
324.2
300 271.0 FY07 200 324.2bn JPY
100 62.2 LargestLargest inin historyhistory 0 -25.3 -54.8 -100 FY03 FY04 FY05 FY06 FY07
Note: Operating results of SOFTBANK MOBILE Corp. (former Vodafone K.K.) were consolidated from May 1, 2006 14 Operating Income by Segment (annual) 350 324.2
300 271.0
250 174.5 Mobile Communications (SOFTBANK MOBILE) 200 155.7
150 39.7 Broadband Infrastructure Fixed-line Telecommunications 62.2 26.8 3.3 100 (SBTM) 20.6 Internet Culture (Yahoo Japan) 115.2 50 96.5 74.1 e-Commerce
0 -2.9 Others -25.1
-50 FY05 FY06 FY07
Note: Operating results of SOFTBANK MOBILE Corp. (former Vodafone K.K.) were consolidated from May 1, 2006 15 Consolidated Ordinary Income (annual)
300
27.4 LargestLargest inin
0 historyhistory
-45.2 -71.9 -100 FY03 FY04 FY05 FY06 FY07
Note: Operating results of SOFTBANK MOBILE Corp. (former Vodafone K.K.) were consolidated from May 1, 2006 16 Consolidated Net Income (annual)
150
108.6 Impact of Alibaba.com Limited IPO 57.2 57.5 50 FY07 28.8 51.4 108.6bn JPY
LargestLargest inin -50 -59.8 historyhistory
-107.0
-150 FY03 FY04 FY05 FY06 FY07
Note: Operating results of SOFTBANK MOBILE Corp. (former Vodafone K.K.) were consolidated from May 1, 2006 17 Consolidated Net Income (annual)
FY07 FY06
FY07 Notes (Apr’07-Mar’08)
Income taxes paid (52.8) Operating cash flow 158.2 Interest paid (103.4) Increase in installment receivables (302.2)
Investing cash flow (322.4) Purchase of tangible/intangible fixed assets (345.6)
Proceeds from exercise of stock acquisition rights and stock subscription rights +44.8 Financing cash flow 284.7 Proceeds from securitizing installment receivables +280.7 Proceeds from leasing newly acquired facilities +297.9
19 Consolidated Operating Cash Flow (quarterly)
56.8
50 Steady increase 27.9 Steady increase
0
-27.4 Q1 Q2 Q3 Q4（FY07） -50
Note: Operating results of SOFTBANK MOBILE Corp. (former Vodafone K.K.) were consolidated from May 1, 2006 20 Cash Position 800 Unused portion of credit line facility
700 Cash position
600 165.0
500
400 69.0
300 30.0 496.0 386.2 200 292.5 100
0 e/o Jun 06 e/o Mar 07 e/o Mar 08 Right after Vodafone K.K. acquisition 21 Capital Expenditure (acquisition basis)
400 389.8
300 293.7
308.4 200 235.3 Mobile Communications 148.9 (SOFTBANK MOBILE) 18.6 Others 100 47.6 21.6 22.1 15.2 82.6 21.2 Broadband Infrastructure 37.6 21.8 0 Fixed-line FY05 FY06 FY07 Telecommunications
Note: Amounts above include procurement through financial leases, the outstanding balance of the financial leases as of the end of FY2007 is 484.9bn JPY. 22 Interest-bearing Debt
2,544.4 2,532.9
1,000 Vodafone subordinated loan 633.1 455.1 Loans from other 500 financial institutions Corporate bonds and CP 471.5 497.7 0 Mar/07 Mar/08
Note: FY2007 loans from other financial institutions are calculated with retroactive adjustments by adding the cash receipts as collateral relating to marketable security lending transactions. Lease obligations are not included in the interest-bearing debt. 23 Progress on Debt Reduction (1)
1,200 9Acceleration of SBM loan repayment
1,000 Total repaid amount: 104.0bn JPY (e/o Apr 08) 800
600 9Decrease of loan other than SBM loan* Decreased by 151.8bn JPY in FY07 400
200
0 e/o Mar 07 e/o Mar 08 *Note: FY2007 loans from other financial institutions are calculated with retroactive adjustments by adding the cash receipts as collateral relating to marketable security lending transactions. Lease obligations are not included in the interest-bearing debt. 24 Progress on debt reduction (2)
Future trend: Expand debt redemption sources
¾FY07 Operating cash flow improved significantly ¾Secure sufficient cash position ¾Improve CAPEX efficiency
25 Interest-bearing Debt/EBITDA Ratio
22 21.6
17 Capacity to repay liabilities continues 12 to improve 6.7 7 4.8 4.0
2
-3 FY04 FY05 FY06 FY07 Note: FY2007 loans from other financial institutions are calculated with retroactive adjustments by adding the cash receipts as collateral relating to marketable security lending transactions. Lease obligations are not included in the interest-bearing debt. 26 Improvement Ratio in Financial Indexes
Right after acquisition of Improvement FY07 Vodafone K.K. ratio (FY06/Q1)
EBITDA margin 22.6% 21.1% +1.5 (EBITDA/net sales)
Equity ratio 8.4% 5.8% +2.6 (Total shareholders’ equity/total assets) ROE 28.3% 10.2% +18.1 (Net income per share/ (FY06) shareholders’ equity per share) D/E ratio (Interest-bearing debt 6.6 times 11.4 times +4.8 /total shareholders’ equity) Net D/E ratio (Net interest-bearing debt 5.3 times 10.1 times +4.8 /total shareholders’ equity) 27 EBITDA Margin by Segment 30% Broadband Infrastructure Mobile Communications SOFTBANK consolidation
15% Fixed-line Telecommunications
0%
-15% FY04 FY05 FY06 FY07
Note: EBITDA margin = EBITDA/Net sales 28 Partial Changes in Articles of Incorporation Changes in Articles of Incorporation related to ‘the development of the listing system for Voting Class Shares’ by TSE
April 2008: publicized ‘the development of the listing system for Voting Class Shares’ --> clarify the rules for listing of non-voting preferred stock*1
Submit resolution on partial changes in Articles of Incorporation (in order to enable issuance of non-voting preferred stock*2) to the Annual General Meeting of Shareholders June 25, 2008
*1 Start targeted at July 2008 *2 Class 1 preferred stock (non-voting preferred stock): stocks with the rights to receive preferred dividend (dividend prior to common stock dividend) as compensation for no voting rights. 29 Mobile Communications Operations FY2007 Summary
30 Successfully Expanding Customer Base
(k) Net Adds (annual) 3,000 2,680
2,500 FY2007 2,000 net additions 1,500 2.682.68 millionmillion
1,000 700
500 170 40 0 Source: Telecommunications Carriers Association FY04 FY05 FY06 FY07
Vodafone 31 Achieved No.1 Net Additions in FY2007
(k) Net Adds (annual)
3,000 SOFTBANK 2,500 FY2007 2,000 KDDI net additions 1,500 2.682.68 millionmillion
1,000 NTT 500 DoCoMo
0 FY04 FY05 FY06 FY07 Source: Telecommunications Carriers Association
32 Achieved No.1 Net Addition Share in FY2007
Net Addition Share (annual) 60%
50% SOFTBANK
40% KDDI 30%
20%
10% NTT DoCoMo
0% FY04 FY05 FY06 FY07 Source: Telecommunications Carriers Association
33 Key Efforts in FY2007
1. Price plans
2. Handset lineup
3. Improving brand image
34 Easy-to-understand Price Plans Accelerated Customer Acquisitions
(m) White Plan Applications 18
16 14 ExceededExceeded 12
10 1212 million*million*
8
6
4
2
0 *As of Mar 20, 2008 based on applications Mar Jun Sep Dec Mar 2007 2008 35 Easy-to-understand Price Plans Accelerated Customer Acquisitions
(m) White Plan Applications 18
16 Other subscribers
14
12 RepresentsRepresents 2/32/3 65% * 10 ofof totaltotal customercustomer 57% 8 47% basebase 6 White Plan subscribers 4 33%
2 17% 0 Mar Jun Sep Dec Mar *Ratio of White Plan and Double White subscribers among the customer 2007 2008 base 36 Steady Increase in Installment Sales
New Super Bonus
(m) Subscribers 18
16
14
12
10
8
6
4
2
0 Mar Jun Sep Dec Mar 2007 2008 37 Steady Increase in Installment Sales
New Super Bonus
(m) Subscribers 18
16 Other subscribers
14
12
10 59% * 8 52%
6 44% 33% New Super Bonus subscribers 4 23% (Installment sales) 2
0 Mar Jun Sep Dec Mar *Ratio of New Super Bonus subscribers in the total 2007 2008 customer base 38 Continued Increase in 3G Subscribers
Total Subscribers (m)
18.59 20
18
16 14.05
14
12 2G2G End of March 2008 10
8 3G subscribers: 14.05m14.05m
6 3G ratio: 75.6%75.6%
4 3G 2 3G
0 Mar Sep Mar Sep Mar Sep Mar Sep Mar 2004 2005 2006 2007 2008 39 Richer Handset Lineup
Internet Machine
THE PREMIUM
HSDPA capable
Color variation Display prevented Character Keitai due to protection of rights.
Thin models
AQUOS
FY2006 FY2007 40 Won the Triple Crown 7 Times!
Display prevented Company Production Brand due to protection of rights.
Among 1,217 Among 4,520 in total Among 3,184 brands companies in total in total Aug/07 1st 1st 1st Among 1,196 Among 4,559 in total Among 3,167 brands companies in total in total Sep/07 st st st 1 1 1 Display prevented Among 1,219 Among 4,541 in total Among 3,185 brands due to protection of rights. companies in total in total Oct/07 1st 1st 1st Among 1,140 Among 4,524 in total Among 3,166 brands companies in total in total Nov/07 1st 1st 1st Among 1,117 Among 4,385 in total Among 3,100 brands companies in total in total Display prevented Dec/07 due to protection of rights. 2nd 4th 2nd
Among 1,276 Among 4,767 in total Among 3,294 brands companies in total in total Jan/08 1st 1st 1st Among 1,167 Among 4,324 in total Among 2,991 brands companies in total in total Feb/08 st st st 1 1 1 Display prevented Among 1,149 Among 4,366 in total Among 2,990 brands due to protection of rights. companies in total in total Mar/08 1st 1st 1st Source: CM Data Bank/CM Research Center, monthly survey on 3,000 consumers’ preference in CM 41 Improved Brand Power (YoY)
Display prevented Brand Index due to protection of rights. Rank Brand Name Movement 1 Nintendo +13.5 2 SOFTBANK MOBILE +12.9 Display prevented 3 NISSIN FOODS +10.5 due to protection of rights. 4 UNIQLO +8.4 5 DAIMARU +8.2 6 PARCO +7.6 Display prevented 7 AQUARIUS +7.5 due to protection of rights.
Source: Brand Image survey (Brand Image Japan 2008) by Nikkei BP Consulting, Inc. (2008/4/18) Ranking of uptrend in comprehensive power from consumers’ view 42 FMC Service
43 Realize FMC Service for Corporate Customers
White Line 24 OTOKU Line White Plan*1 *2 Mobile Fixed
Display prevented Display prevented due to protection of rights. due to protection of rights.
Free 24 hour voice calls*3
*1 Fixed fee (+980 JPY)/line *2 Requires fixed separate fee *3 Does not apply to international communication 44 Realize FMC Service for Consumers
*1 White Call 24 White Plan Mobile Fixed
Display prevented Display prevented due to protection of rights. due to protection of rights.
Free 24 hour voice calls*2
*1 Both contracts and application for White Call Service (free) are required *2 Does not apply to international communication 45 Improving Synergies Between Mobile and Fixed-line
Mobile White Plan
White Call 24 White Line 24
46 Improving Synergies Between Mobile and Fixed-line
Mobile White Plan
Free 24 hour voice calls Free 24 hour voice calls
47 TV Commercial
48 2008 Year of the Internet Machine
49 Year of the Internet Machine
•Supports PC mail •Mail entry 3-5 times faster •Full keyboard •HSDPA capable
The era of mobile broadband has arrived
50 Internet Access via Mobile Page Views
ComparedCompared to to e/oe/o June June 20062006
approx.approx. x91x91
* Page views of Yahoo! JAPAN top page through mobile phones Through Sep 30, 2006: Yahoo! Mobile Since Oct 1, 2006: Yahoo! Keitai 7/1 10/1 4/1 10/1 3/31 2006 2007 2008 51 Music Downloads via Mobile Distribution of Charged Music Content (m times) 140 Mobile PC 120
100
80 Display prevented due to protection of rights. 60
40
20
0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3
FY2006 FY2007 FY2005 52 Source: Recording Industry Association of Japan SNS via Mobile
Page Views of mixi (bn PV) 14 Mobile PC 12 6.81
10
Display prevented 8 due to protection of rights.
6 5.03 4
2
0 OctJanAprJulOctJanAprJulOct FY2005 FY2006 FY2007 Source: FY2007 Q3 materials publicized by mixi, inc. 53 Efforts in the Year of the Internet Machine
54 Distribute Popular Content to Mobile Handsets: Baseball
Video Highlights of all 6 Pacific League Teams
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Display prevented Display prevented Display prevented due to protection of rights. due to protection of rights. due to protection of rights.
55 Distribute Popular Content to Mobile Handsets: Literature
Novels
Display prevented due to protection of rights. Made into comics Display prevented due to protection of rights.
SOFTBANK Creative started exclusive distribution of 1,000 titles of the Harlequin series on April 24th on Replication or reproduction of cover images without prior consent is prohibited Planned to be distributed to mobile beginning in May (c) 2006-2008 Harlequin K.K. 56 Already Dominating the Top Rank of Downloads via PC
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Dominated the top 10 titles in Yahoo! Comics downloads from April 24 to 30 2008 (7 consecutive days) 57 Distribute Popular Content to Mobile Handsets: Comics
Display prevented Display prevented due to protection of rights. due to protection of rights.
Display prevented due to protection of rights.
Kurosagi Parasyte Comic Shogakukan Books Kodansha Comic Plus (C) Kuromaru/Originally created by Takeshi (C) Hitoshi Iwaaki/Kodansha Ltd. Natsuhara/Shogakukan Inc.
Display prevented due to protection of rights. Doraemon Comic Shogakukan Books (C) Fujiko Production/ ASHITA NO JOE 2 Shogakukan Inc. Aniyome (C) Asao Takamori/Tetsuya Chiba/Kodansha Ltd./TMS *Image picture 58 Distribute Popular Content to Mobile Handsets: Comics
Display prevented Display prevented due to protection of rights. due to protection of rights.
Display prevented due to protection of rights.
Kurosagi Parasyte Comic Shogakukan Books Kodansha Comic Plus (C) Kuromaru/Originally created by Takeshi (C) Hitoshi Iwaaki/Kodansha Ltd. Natsuhara/Shogakukan Inc.
Display prevented due to protection of rights. Doraemon Comic Shogakukan Books (C) Fujiko Production/ ASHITA NO JOE 2 Shogakukan Inc. Aniyome (C) Asao Takamori/Tetsuya Chiba/Kodansha Ltd./TMS *Image picture 59 Distribute Popular Content to Mobile Handsets: Games
Mobile Suit Gundam Net Battle
Display prevented due to protection of rights. Provided by BANDAI NETWORKS CO., LTD. (C) SOTSU CO.,LTD/Sunrise Inc. (C) BANDAI NETWORKS
Momotaro Dentetsu KANTO Taisen Bomberman+
Display prevented due to protection of rights. Display prevented Display prevented due to protection of rights. due to protection of rights.
Provided by (C) HUDSON SOFT
Provided by (C) HUDSON SOFT
60 ARPU
(JPY) 6,000 5,590 5,700 5,560 5,210 5,000 4,800 4,520 4,310
5,000
4,000
4,230 4,320 4,230 3,830 3,590 3,340 3,040 2,710 3,000 Voice
2,000
1,000 Data 1,350 1,380 1,330 1,380 1,410 1,470 1,490 1,600
0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 FY2006 FY2007 61 ARPU + Installment Payments (Reference)
(JPY) 6,000 5,590 5,700 5,580 5,430 5,480 5,530 5,520 5,540
20 220 5,000 480 730 1,000 1,230 Installment
4,000
4,230 4,320 4,230 3,830 3,590 3,340 3,040 2,710 3,000 Voice
2,000
1,000 Data 1,350 1,380 1,330 1,380 1,410 1,470 1,490 1,600
0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 FY2006 FY2007 62 No.1 Internet Company in Asia
63 No.1 Internet Company in Asia
64 Overwhelmingly Becoming No.1 in Asia
65 Xiaonei
66 Further Reinforce Foothold in Asia “Xiaonei” Largest SNS in China
Display prevented due to protection of rights.
67 Largest SNS in China (Chinese version of Facebook, mixi) Number of Registered Users (m) Approx. 25m 25 (at the e/o April 2008)
20
15 Display prevented due to protection of rights. 10
5
0 Oct Jan Apr Jul Oct Jan Apr 2006 2007 2008 68 Over 19 Million Active Users
(m) Number of Active Users 20 Approx. 19m (at the e/o April 2008)
15
10 Display prevented due to protection of rights.
5
0 (New registrants by university) Oct Jan Apr Jul Oct Jan Apr 2006 2007 2008 69 Very Active Community
(m) Cumulative Number of Uploaded Photos Approx. 400m 400 (at the e/o April 2008)
300
200 Display prevented due to protection of rights.
100
0 Oct Jan Apr Jul Oct Jan Apr (Photo book) 2006 2007 2008 70 Very Active Community
(bn) Cumulative Number of Comments * 2.5 Approx. 2.3bn (at the e/o April 2008)
2.0
1.5
Display prevented 1.0 due to protection of rights.
0.5
0.0 Oct Jan Apr Jul Oct Jan Apr 2006 2007 2008 (Comment)
*Number of comments entered in diaries, photos and profiles 71 Alibaba
72 Alibaba.com OverwhelmingOverwhelminglyly thethe No.1No.1 Market Share in 2007 B2BB2B ee--commercecommerce companycompany inin ChinaChina
Others
75%75% Display prevented due to protection of rights. 68% in 2006
Source: Alibaba.com Limited 73 Alibaba.com
(m) Number of Users 28 OverwhelmingOverwhelminglyly thethe No.1No.1
24 B2BB2B ee--commercecommerce companycompany inin ChinaChina 20
16 Exceeds 29m people 12
8
4
0 Mar Mar Mar Mar Mar 2004 2005 2006 2007 2008 74 Alibaba.com
3,000
2,000 NetNet incomeincome
1,000 xx2.12.1YoYYoY
0 FY07 FY08 1 RMB＝13.5JPY Q1 Q1 75 Taobao.com
Market Share in 2007 OverwhelmingOverwhelminglyly thethe each net. No.1No.1 C2CC2C auctionauction com PaiPai companycompany inin ChinaChina
84%84% Display prevented due to protection of rights. 65% in 2006
Source: iResearch China Online Shopping research report (2007-2008) 76 Taobao.com (m) 70 Number of Users
60
50 OverwhelmingOverwhelminglyly thethe
40 No.1No.1 C2CC2C auctionauction companycompany 30 Exceeds 62m people 20
10
0 Mar Mar Mar Mar Mar 2004 2005 2006 2007 2008 77 Alipay
Number of Users (m) 80 No.1No.1 onlineonline paymentpayment 60 serviceservice inin ChinaChina
40 Exceeds 74m people 20
0 Mar Mar Mar 2006 2007 2008 78 Strategic Internet Related Investments
79 Strategic Internet Related Investments
(approx. 10 yrs ago) (approx. 5 yrs ago) (NOW)
JPY 54.7bn >> JPY 369.2bn JPY 7.7bn >> JPY 1,257.8bn JPY 38.8bn >> JPY 283.0bn UTStarcom Shanda Interactive SBI Holdings, Inc. cyber communications inc. Entertainment Limited * JPY 21.5bn >>JPY 64.7bn JPY 4.2bn >> JPY 54.4bn E*TRADE JPY 6.0bn >>JPY 176.0bn JPY 0.5bn >> JPY 23.0bn JPY 46.1bn >>JPY 47.2bn Trend Micro Incorporated Focus Media Holding Limited UK, Fr, De, Kr JPY 8.5bn>>JPY 139.8bn JPY 4.1bn>>JPY 12.0bn JPY 0.05bn >> JPY 3.8bn JPY 2.3bn >>JPY 58.8bn SKY Perfect Communications Inc. China Digital TV Holding Co., Ltd * GSI Commerce Inc. JPY 3.3bn>>JPY 87.9bn JPY 20.3bn>>JPY 47.9bn JPY 0.6bn >> JPY 22.4bn JPY 5.1bn >> JPY 6.0bn Postini, Inc Eternal Asia Supply Chain Management Limited * JPY0.6bn >> JPY 5.5bn JPY 4.5bn>>JPY 12.4bn JPY 1.1bn>>JPY 2.4bn JPY 1.9bn >> JPY 15.0bn Sling Media SBInternet Technologyﾞfund 1 &2 JPY 0.5bn >> JPY 2.6bn Perfect World Co., Ltd* Infinera Corporation JPY 2.0bn>>JPY 4.0bn JPY 50.0bn>>JPY 50.5bn JPY 0.8bn >> JPY 42.1bn JPY 1.4bn >> JPY 3.3bn Danger Advanced Media, Inc. BroadBand Tower, Inc. JPY 2.4bn >> JPY 5.9bn JPY 1.0bn >> JPY 9.3bn JPY 0.2bn>>JPY8.7bn Stratify, Inc JPY 10.2bn >> JPY 0.8bn >> JPY 5.2bn JPY 0.7bn >> JPY 3.1bn 80 Note: Return is the sum of appraisal gain & gain on sale as of May 6 2008 *Investment results through SAIF Strategic Internet Related Investments
(t JPY) 3.5 x9.4 2.8t
2.5
Display prevented 1.5 due to protection of rights.
0.5 300.0bn
Total investment Appraisal/sale value -0.5
Note: Investment results through SAIF Return is the sum of appraisal gain & gain on sale as of May 6 2008 81 Aiming to Become the No. 1 Mobile Internet Company
82 Established the Joint Innovation Lab
Vodafone Group Plc China Mobile Limited
33% 33% 33%
Joint Innovation Lab
・Chairman: Masayoshi Son (SOFTBANK CORP.) ・Vice chairman: Sha Yuejia (China Mobile Limited) ・CEO: Paul Donovan (Vodafone Group Plc) 83 World’s Largest Alliance of Mobile Carriers
Approx. 700m
Vodafone Group Plc China Mobile Limited Approx. 250m*1 Approx.390m*2 Approx.19m
*1 As of the end of Dec 2007 investment ratio proportionally consolidated *2 As of the end of March 2008 84 World Mobile Penetration Ratios
(%) 140
120 124
100 95 80 85 80
60
40 41
20 23
0 UK USA France Japan China India Source: Mobile Intelligence 2008 Q1 85 World 3G Penetration Ratios (%) 90
80 79 70
60
50
40
30
26 20 23 20
10
0 0 0 Japan UK USA France China India *3G penetration ratio means 3G usage ratio among all mobile phone users, excluding CDMA 1X. Source: Mobile Intelligence 2008 Q1 86 Leading the Trend of Internet Machines Around the World
Display prevented due to protection of rights. Display prevented Display prevented due to protection of rights. due to protection of rights. Display prevented due to protection of rights.
Display prevented Display prevented due to protection of rights. due to protection of rights.
Display prevented Display prevented due to protection of rights. due to protection of rights.
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Display prevented due to protection of rights. Display prevented due to protection of rights. Display prevented due to protection of rights. No. 1 Mobile Internet Company
87 No.1 Internet Company in Asia
88 No.1 Internet Company in Asia
Mobile Internet Company
89 No.1 Internet Company in Asia
Mobile Internet Company
90 Winners in the mobile Internet market are winners in the Internet market
Winners in Asia are winners in the World
91 Make the World’s Internet More Fun
92 Lifestyle Company in the 21st Century
Broadband available to all living people everywhere
93 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
94 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. •The names of the products and services used in this presentation are trademarks or registered trademarks of the respective companies. 95 FY2007/Q4 Appendix to the Earnings Results (Amounts less than one billion yen are omitted. / Net Sales to external customers） FY2005 Business segment unit FY2006 FY2007 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Net sales bn JPY 231.5 350.3 426.6 422.2 389.0 419.8 403.1 406.8 Operating income bn JPY 27.2 29.3 56.9 42.2 43.5 50.6 53.7 26.5
Mobile Communications （*1） EBITDA bn JPY 55.8 73.6 104.0 87.9 92.4 104.0 108.3 80.6 (Core company : SOFTBANK MOBILE Corp.） Operating margin ％ 11.7% 8.3% 13.2% 9.9% 11.1% 12.0% 13.2% 6.5% EBITDA margin ％ 24.0% 20.9% 24.2% 20.6% 23.6% 24.6% 26.7% 19.7% Total number of subscribers thousand 15,240 15,307 15,497 15,909 16,441 17,053 17,614 18,586 Net sales bn JPY 61.0 63.9 71.3 70.9 62.7 64.6 65.3 65.9 64.3 62.4 62.8 61.7 （*2） Operating (loss) income bn JPY (4.4) 3.4 9.3 12.3 5.4 6.1 7.7 7.3 8.6 10.3 11.3 9.4 （*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 (0.9) (0.3) +0.1 +0.0
Operating income excluding the impact of the sale of the bn JPY 1.7 5.3 6.3 6.3 8.1 7.0 7.7 9.9 11.4 9.4 ADSL modem rental business Broadband Infrastructure (Core company : SOFTBANK BB Corp.) EBITDA bn JPY 3.0 11.4 16.3 18.1 11.8 12.6 15.4 15.7 15.9 17.5 18.5 18.2 Operating margin ％ - 5.4% 13.1% 17.3% 8.7% 9.4% 11.5% 10.9% 13.2% 16.1% 17.6% 14.7%
Operating margin excluding the impact of the sale of the ％ 2.6% 7.8% 9.4% 9.2% 11.5% 10.0% 11.2% 14.8% 17.2% 14.3% （*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% 27.3% 28.9% 28.6% 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 5,042 4,943 4,809 Net sales bn JPY 87.3 81.5 88.6 89.7 81.8 84.3 81.4 84.4 77.8 80.0 78.4 88.4 Operating (loss) income bn JPY (14.0) (12.2) (1.7) 2.9 1.2 (0.9) (2.6) (0.6) (0.1) 0.4 1.3 1.6 EBITDA bn JPY (1.8) 0.0 9.1 14.2 12.6 10.2 8.9 10.7 11.1 11.3 12.4 13.0 Fixed-line Telecommunications （*3） （Core company : SOFTBANK TELECOM Corp.） Operating margin ％ - - - 3.2% 1.4% ----0.5% 1.5% 1.6% EBITDA margin ％ - 0.0% 10.2% 15.4% 14.3% 11.0% 9.5% 10.9% 12.3% 12.5% 13.8% 13.2% number of lines installed for direct connection voice service thousand 540 683 764 848 1,020 1,077 1,136 1,221 1,257 1,315 1,351 1,401 （*3） Net sales bn JPY 34.4 36.7 42.0 42.2 44.4 45.2 49.4 52.3 51.8 56.9 65.1 69.8 Operating income bn JPY 16.4 17.1 19.2 21.2 21.6 22.7 25.0 27.1 27.1 27.7 28.8 31.4 Internet Culture EBITDA bn JPY 17.9 18.8 21.2 23.5 23.9 25.2 27.6 29.4 29.6 30.5 31.7 34.5 （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% 48.2% 43.4% 44.5% EBITDA margin ％ 51.9% 51.0% 50.4% 55.6% 53.6% 54.1% 55.2% 55.7% 56.1% 53.1% 47.7% 48.9% Net sales bn JPY 58.5 65.1 68.4 80.6 55.8 61.1 61.2 78.5 58.2 60.2 65.5 71.6 （*4） e-Commerce Operating income bn JPY 0.7 0.8 1.4 1.8 1.4 1.3 2.0 1.8 1.1 0.9 0.8 0.2 Net sales bn JPY 17.2 16.8 16.8 14.8 17.6 20.1 18.0 18.1 21.7 22.1 18.8 18.9 Others Operating (loss) income bn JPY (0.6) (0.3) (3.7) 0.0 (0.7) 0.5 (4.0) (0.5) (0.6) 0.0 (2.6) (1.8) Elimination or corporate bn JPY (1.2) (1.2) (1.0) (4.0) (2.0) (1.0) (0.3) (3.5) (0.9) (1.2) (1.0) (3.3) Net sales bn JPY 258.6 264.1 287.4 298.4 494.2 625.9 702.1 721.8 663.0 701.6 694.0 717.4 Operating (loss) income bn JPY (3.1) 7.5 23.5 34.3 54.3 58.1 84.7 73.7 78.7 89.0 92.4 64.0 Total EBITDA bn JPY 19.5 30.7 44.7 54.9 104.3 124.0 154.0 143.0 149.7 164.4 169.4 142.9 Operating margin ％ - 2.9% 8.2% 11.5% 11.0% 9.3% 12.1% 10.2% 11.9% 12.7% 13.3% 8.9% EBITDA margin ％ 7.5% 11.6% 15.6% 18.4% 21.1% 19.8% 21.9% 19.8% 22.6% 23.4% 24.4% 19.9% *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 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. *4: SOFTBANK applied the “Practical solution on accounting for revenue recognition of software” from FY2006/Q1.