Earnings Results for the Nine Months Ended December 31, 2018 SoftBank Corp. February 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. Paradigm Shifts Occur Continuously PC Internet Mobile Phones Smartphones 2 Evolving with Paradigm Shifts PC distribution High-speed Fixed-line Mobile telecom Sole iPhone Multi-brand business broadband business business distributor in Japan Strategy business PC Internet Mobile Phones Smartphones iPhone is a trademark of Apple Inc., registered in the U.S. and other countries. The trademark “iPhone” is used with a license from AIPHONE CO., LTD. TM and © 2018 Apple Inc. All rights reserved. 3 Larger Business Opportunities Arise PC Internet Mobile Phones Smartphones AI・IoT Robot 4 Aiming for Further Growth New Businesses in collaboration with AI SoftBank group’s portfolio companies IoT Beyond Carrier strategy Telecom Business Big Data Expansion of customer base Smartphone subscriber growth Broadband subscriber growth Efficient deployment and operations of network including 5G 55 To a New Stage in the Information Revolution 6 SoftBank Corp. Consolidated Results 7 Consolidated Results for Q3 FY2018 ［JPY bn］ FY2017 FY2018 YoY YoY (%) Q1-Q3 Q1-Q3 Revenue 2,646.9 2,776.7 129.7 5% Operating Income 535.7 634.9 99.3 19% Net Income 333.6 395.9 62.3 19% Adjusted FCF 408.2 *425.0 16.8 4% Net Income: Net Income attributable to owners of SoftBank Corp. Adjusted Free Cash Flow = free cash flow ± transactions with the parent + (proceeds from the securitization of installment sales receivables – repayments thereof). *Excluding JPY 221.0 bn of the acquisition of the share of Yahoo Japan Corporation. 8 SoftBank Corp. Forecast for FY2018 ［JPY bn］ FY2017 FY2018 YoY YoY (%) Results Forecast Revenue 3,582.6 3,700.0 117.4 3% Operating Income 637.9 700.0 62.1 10% Net Income 400.7 420.0 19.3 5% Excluding JPY 221.0 bn of Adjusted FCF 508.0 500.0 acquisition of the share of Yahoo or more Japan Corp. Dividend per share - JPY 37.50 (for half year) Net Income: Net Income attributable to owners of SoftBank Corp. Adjusted Free Cash Flow = free cash flow ± transactions with the parent + (proceeds from the securitization of installment sales receivables – repayments thereof). 9 Revenue ［JPY bn］ 3,700.0 3,582.6 35,000 30,000 25,000 20,000 5% increase 15,000 2,646.9 2,776.7 10,000 5,000 0 FY2017 FY2018 ［for 9 months］ 10 Operating Income ［JPY bn］ 700.0 7,000 637.9 6,000 5,000 4,000 3,000 634.9 19% increase 535.7 2,000 1,000 0 FY2017 FY2018 ［for 9 months］ 11 Net Income ［JPY bn］ 420.0 400.7 4,000 3,500 3,000 2,500 2,000 395.9 19% increase 1,500 333.6 1,000 500 0 FY2017 FY2018 ［for 9 months］ Net Income: Net Income attributable to owners of SoftBank Corp. 12 CAPEX (Acceptance Basis) ［JPY bn］ 380.0 350.1 3,500 3,000 2,500 2,000 Progressing 1,500 244.5 as planned 1,000 202.0 500 0 FY2017 FY2018 ［for 9 months］ Excluding device for rental service. 13 Adjusted Free Cash Flow ［JPY bn］ 508.0 500.0 or more 5,000 4,000 3,000 % increase* 2,000 408.2 425.0 4 1,000 0 FY2017 FY2018 ［for 9 months］ Adjusted Free Cash Flow = free cash flow ± transactions with the parent + (proceeds from the securitization of installment sales receivables – repayments thereof). *Excluding JPY 221.0 bn of the acquisition of the share of Yahoo Japan Corporation. 14 Achieving Both Growth and Shareholder Returns Growth Shareholder Returns 15 Pursue High Shareholder Returns Stable dividend Guideline payout ratio of c.85% per share on a consolidated basis Aiming to maintain or increase dividends for the next fiscal year 16 Further Growth of Telecom Business 17 Japanese Market Consumer Smartphone Penetration Ratio* Aiming for further Penetration in the growing Smartphone Market 61% * Ratio of number of individual smartphone users to entire population as of Dec. 2017. Source: Communications Usage Trend Survey by Ministry of Internal Affairs and Communications. 18 Smartphone Strategy Focus on Enhance ways penetration of use 19 Ultra Giga Monster Plus Unlimited Use of Video and SNS 20 Payment Transportation Shopping Investment Borrowing 21 Cumulative Smartphone Subscribers ［Mil］ 21.46 2,000.0000 19.56 1,500.0000 1,000.0000 10% increase (1.90 mil increase) 500.0000 0.0000 FY2015 FY2016 FY2017 FY2018 ［End of Q3］ 22 Multiple Brands for All Targeted Customers Price Reasonable Low price Low price Data Usage Large Medium Small Heavy data users and Users in their teens ライトユーザー 10代〜20代前半 business users Light users and early twenties Target Customers 23 H a n Ultra Giga Monster Plus 50GB Separated Data Plan Unlimited handset payment from Industry-leading use of video and SNS service fees large-capacity plan NEW! 24 Cost per GB ［JPY］ 814 800 700 600 500 400 1/10 300 224-250 200 in 3 years 80 100 0 2015 2018 Other ** Companies White Plan Ultra Giga Monster+ (JPY 5,700/7GB) (JPY 3,980/50GB)* *Ultra Giga Monster+ (50GB) JPY5,980 minus Family discount (4 people) JPY2,000 **MNO A: JPY6,720/30GB- MNO B: JPY25,000/100GB, excluding discounts such as student discount. 25 Ultra Giga Monster Plus No worry about Customer Satisfaction Unlimited use, speed limitation best ever! Satisfied Really happy! Stress free! No worry at all 93% Source: the data is based on a survey SoftBank Corp. conducted to 2,394 Ultra Giga Monster Plus subscribers dated Jan 18th - 20th 2019. 26 Low-priced Smartphone Market excluding MON carriers Broad support No.1 from light users Share MNO: Mobile Network Operator Source: the data is based on MMD Labo “Low-cost smartphone market usage report, Sep 2018. 27 To launch plans that separate handset payment and service fees in 1H FY2019 *SoftBank brand has already launched plans that separated handset payment and service fees. 28 Smartphone Migrations between Brands [Number of subscribers] Migration to SoftBank Migration to Ymobile More migrations between brands FY2016 FY2017 FY2018 ［End of Q3］ Excluding subscribers in Enterprise segment 29 Smartphone Churn Rate [%] 2.00 1.80 1.60 1.40 1.20 1.00 0.85 Record low 0.80 0.60 0.79 0.40 0.20 0.00 FY2015 FY2016 FY2017 FY2018 ［Average for Q3］ Churn rate= Number of churns / Number of active subscribers 30 Broadband Cumulative Subscribers [Mil] 7.52 700 6.38 600 500 400 SoftBank Hikari 300 5.72 4.67 200 23% increase 100 0 FY2015 FY2016 FY2017 FY2018 ［End of Q3］ SoftBank Air subscribers are included in SoftBank Hikari subscribers. 31 Synergy with Yahoo Japan Smartphone Subs Physical shops* Largest user base 21 mil subs in domestic Internet service 6,200 shops 90 million** *Including directly-owned stores, dealers, mass electronics retailers and stores offering multiple carriers as of Jan 2019 ** Number of daily UBs(Unique Browsers) (quarterly average) 32 Linked “Yahoo! JAPAN ID”s ［Mil］ 13.99 1,400 1,200 11.06 1,000 800 600 26% increase 400 200 0 FY2015 FY2016 FY2017 FY2018 ［Dec 2018］ The number of SoftBank or Y!mobile smartphone subscribers who log in to Yahoo! JAPAN ID through linked ID using their smartphones. 33 Enterprise Business Telecom Business Strategic Areas Smart Key Global Navigation AI Satellite System tracking service SoftBank IoT Platform 34 Strategic Areas: To Increase Profit by Enhancement of Services and AI Companies Robotics AI and RPA Security Digital Marketing Cloud IoT Ad SoftBank IoT Platform Smart Key Global Navigation Satellite System tracking service 35 Accelerating Business Creation through Collaboration with Partners Mitsubishi Real Estate Services Co., Ltd People- Flow Analysis 5G Floor- IoT cleaning Robot Ministry of Land, Infrastructure and Transport SUMITOMO LIFE INSURANCE COMPANY AI NIDD NB-IoT Healthness Image Data Analysis 36 Framework Agreements with Local Governments for MaaS, Smart City, and Next Generation Education Jul.