Earnings Results for the Fiscal Year Ended March 31, 2008
Total Page:16
File Type:pdf, Size:1020Kb
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 <Highlights> 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 <Annual> <bn JPY> 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 <k> FYFY0707 NetNet AdditionsAdditions 3,000 2,750 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 <k> FYFY0707 NetNet AdditionsAdditions 3,000 2,680 2,750 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 <bn JPY> Operating Income (annual) 300 271.0 200 100 0 FY06 FY07 7 FY2007 Highlights <bn JPY> 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 2.77 <t JPY> 2.54 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) <bn JPY> 3,000 2,776.1 2,544.2 2,500 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 <bn JPY> 626.6 600 525.4 500 400 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) 700 <bn JPY> 626.6 600 525.4 500 385.4 400 Mobile Communications (SBM) 321.4 Broadband Infrastructure 300 Fixed-line Telecommunications 200 70.3 (SOFTBANK TELECOM) 149.9 55.6 47.9 48.9 42.5 Internet Culture (Yahoo Japan) 100 21.4 e-Commerce 81.6 106.2 126.4 Others 0 FY05 FY06 FY07 -100 Note: Operating results of SOFTBANK MOBILE Corp. (former Vodafone K.K.) were consolidated from May 1, 2006 13 Consolidated Operating Income (annual) 400 <bn JPY> 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 <bn JPY> 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 <bn JPY> 258.6 Impact of Alibaba.com 57.2 Limited IPO 200 153.4 201.4 FY07 100 258.6bn JPY 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 <bn JPY> 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) <bn JPY> FY07 FY06 <Notes> (Apr’07-Mar’08) (Apr’06-Mar’07) IPO of Alibaba.com Ordinary income 258.6 153.4 Limited: +57.2 Special loss related to OTOKU Line: (26.2) Special income and (32.7) 55.1 Valuation loss on losses, net investment securities: (21.8) Income before income taxes and minority 225.8 208.5 interests Income taxes: Current 48.6 48.7 Mainly Yahoo Japan Income taxes: Deferred 29.5 93.6 Minority interests 39.0 37.3 Mainly Yahoo Japan Net income 108.6 28.8 18 Consolidated Cash Flow (annual) <bn JPY> 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) <bn JPY> 101.0 100 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 <bn JPY> Cash position 700 600 165.0 500 69.0 400 300 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) <bn JPY> 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 <bn JPY> 2,500 219.0 Securitization of installment 2,000 receivables (SBM) 1,355.0 1,276.4 SBM loan (WBS) 1,500 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) <bn JPY> <Consolidated interest-bearing debt> 1,600 SBM loan Loan other than SBM Securitization of installment receivables 1,400 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 <times> 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 <Development of listing system (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 <SOFTBANK’s response> 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.