Earnings Results for the Year Ended March 31, Analyst Meeting

Transcription

1 Earnings Results for the Year Ended March 31, 211 Analyst Meeting May 1, 211 SOFTBANK CORP. May 1, 211 Version

2 Disclaimer This material was prepared based on information available and views held at the time it was made. Statements in this material that are not historical facts, including, without limitation, plans, forecasts and strategies are forward-looking statements. Forward-looking statements are by their nature subject to various risks and uncertainties, including, without limitation, a decline in general economic conditions, general market conditions, technological developments, changes in customer demand for products and services, increased competition, risks associated with international operations, and other important factors, each of which may cause actual results and future developments to differ materially from those expressed or implied in any forward-looking statement. With the passage of time, information in this material (including, without limitation, forward-looking statements) could be superseded or cease to be accurate. SOFTBANK CORP. disclaims any obligation or responsibility to update, revise or supplement any forward-looking statement or other information in any material or generally to any extent. Use of or reliance on the information in this material is at your own risk. Information contained herein regarding companies other than SOFTBANK CORP. and other companies of the SOFTBANK Group is quoted from public sources and others. SOFTBANK CORP. has neither verified nor is responsible for the accuracy of such information. Application of Accounting Standard for Disclosures about Segments of an Enterprise and Related Information The Accounting Standard for Disclosures about Segments of an Enterprise and Related Information and related Guidance on the Accounting Standard for Disclosures about Segments of an Enterprise and Related Information are being applied from FY21 and are hereafter referred to as the new standard. Segment financial results for FY29 are shown based on the new standard for comparison purposes only and have neither been audited nor reviewed by our independent auditors. All segment financial information for FY29 presented herein based on the new standard are subject to our audited and reviewed financial reports for the relevant corresponding periods. 2

3 Accounting 4 Consolidated P/L Analysis 5 Consolidated B/S Analysis 17 Consolidated CF Analysis 27 Finance 31 Operation 57 Broadband Infrastructure Segment 59 Fixed-line Telecommunications Segment 63 Mobile Communications Segment 67 3

4 Accounting Kazuko Kimiwada General Manager Accounting, Internal Control SOFTBANK CORP. 4

5 Accounting Consolidated P/L Analysis 5

6 Consolidated P/L Summary Net Sales Operating Income Ordinary Income Net Income 3, 2, 1, +8.7% 7 3,4.6 2, Q Q Q Q FY9 FY FY % FY FY % FY % FY9 FY1 6

7 Consolidated Net Sales 2, (+8.7%) 3,4.6 Mobile Communications bn - Increase in telecom service revenue bn Increase in subscribers +16.2bn Increase in ARPU +38.8bn -Increase in revenue from sales of mobile handsets and accessories +97.5bn 1,71.4 1,944.5 Mobile Communications Broadband Infrastructure - Main factors for the change Decrease in the number of Yahoo! BB ADSL charged lines Increase in Yahoo! BB Hikari with FLET S sales -12.bn Broadband Infrastructure Fixed-line Telecommunications Fixed-line Telecommunications +7.8bn - Main factors for the change Increase in OTOKU Line sales Decrease in MYLINE sales Increase in revenue from network provision to Group companies such as SBM (inter-segment sales) FY FY1 Internet Culture Others Elimination Internet Culture - Main factors for the change Revenue increase from greater advertising amount Increase in revenue from information listing services, etc bn 7

8 Consolidated Operating Income (+35.1%) Mobile Communications bn - Increase in net sales bn - Increase in COS, SGA -11.6bn (main factors for the change) Increase in COS on the increase in the number of handsets shipped Decrease in depreciation mainly as a result of 2G service termination Increase in sales commission and sales promotion expense as a result of increased number of handsets sold Mobile Communications Broadband Infrastructure -5.2bn - Decrease in net sales -12.bn - Decrease in COS, SGA +6.8bn (main factors for the change) Decrease in COS reflecting the net sales decrease Increase in sales commission and sales promotion expense Broadband Infrastructure Fixed-line Telecommunications Internet Culture Others Elimination Fixed-line Telecommunications - Increase in net sales +7.8bn - Decrease in COG, SGA +7.bn (main factors for the change) Decrease in lease payments on equipment for OTOKU Line Decrease in sales commission and sales promotion expense Internet Culture -Increase in net sales +14.9bn +13.7bn +12.8bn FY9 FY1 8

9 Non-operating Income/Expense and Ordinary Income Non-operating Income/Expense Ordinary Income Non-operating Income Non-operating income Non-operating Non-operating expense expense excluding excluding interest interest expense expense Interest expense Non-operating Interest expense income/expenses (NET) Non-operating income/expenses (NET) Increase in operating income Net of increase in non-operating income/expense FY1 Ordinary income FY9 Ordinary income Non-operating income/expenses (NET) Non-operating income/expenses (NET) (+52.6%) (Total non-operating expenses) FY9 (Total non-operating expenses) FY1 9

10 Special Income/Loss and Income Before Income Taxes < bn JPY> Special Income/Loss Income Before Income Taxes and Minority Interests Special income Special loss (Breakdown of special loss) (1) Valuation loss on option (2) Loss on adjustment for changes of accounting standard for asset retirement obligations Increase in ordinary income Net of increase in special income/loss FY1 Income before income taxes (3) Loss on disaster (4) Other special losses Special Income/loss (NET) (1) FY9 Income before income taxes -7. (2) Special income/loss (NET) (Total special loss) FY (4) Special income/loss (NET) (Total special loss) -54. FY1 (3) (+66.2%)

11 (Reference) Impact from Great East Japan Earthquake Special loss recorded in relation to Great East Japan Earthquake occurred in March 211 Item Amount (bn JPY) Loss on damage and restoration expenses for telecommunications network 6.2 Loss on exemption of receivables from customers and additional allowance for doubtful accounts 3.6 Details Loss on retirement and demolition of telecommunications network such as base stations due to the earthquake Removal, restoration, and check up expenses for the assets described above Exemption of receivables from customers afflicted by the disaster Additional allowance for doubtful accounts deemed to be uncollectable Loss on non cancelable advertisement contracts which were already ordered 2. TV and newspaper ads, etc. Others 2.5 Lending of mobile phone handsets free of charge and replacement expenses of customer premises equipment Business consignment expenses for call centers to support customers corresponding to the earthquake disaster Supporting expenses for damaged agencies, and others Total loss on disaster

12 Net Income Net Income A Income taxes: current B Income taxes: correction C Income before income taxes & minority interests Income taxes: deferred 32. Income before minority interests Minority interests 57.9 Net income

13 (Reference) Comprehensive Income Comprehensive income: the change in equity [net assets] of a business enterprise during a period from transactions and other events and circumstances from non-owner sources. It includes all changes in equity during a period except those resulting from investments by owners and distributions to owners >>Change in equity other than investments by owners & distributions to owners B/S FY9/Q4 Balance Comprehensive Income Movement during FY1 (Adjustment) Reversal of minority interest equivalent (Adjustment) Deduction of share of other comprehensive income of associates accounted for using equity method B/S FY1/Q4 Balance a b c d (a + b c + d) (b - c) Income before minority interests Other comprehensive income Unrealized gain on available-for-sale securities Minority Interests in Net Income Net Income PL Deferred gain on derivatives under hedge accounting Foreign currency translation adjustment Share of other comprehensive income of associates accounted for using equity method * Total other comprehensive income Comprehensive income *1. Separately indicates the share of other comprehensive income of associates accounted for using equity method included in other accounts of comprehensive income Comprehensive income attributable to minority interests Comprehensive income attributable to owners of the parent 13

14 Tax and Other Adjustments FY1 Main Breakdown of Tax Expenses < bn JPY> A Income taxes: current (main breakdown) 1. Yahoo Japan SBM local taxes (out of scope for BBM consolidated tax return) BBM income taxes under consolidated tax return (all loss carryforwards fully utilized in the previous fiscal year) 61. B Income taxes: correction (mainly Yahoo Japan) 27.3 C Income taxes: deferred 32. (main breakdown) 4. SBM decrease in temporary difference (mainly depreciation) SBB decrease in temporary difference, utilization of loss carryforwards SBM depreciation and amortization adjustments (occurred at time of SBM acquisition) SBTM differed tax assets Other temporary difference -3.1 Total income taxes (A+B+C) SBM: SOFTBANK MOBILE BBM: BB Mobile SBB: SOFTBANK BB SBTM: SOFTBANK TELECOM 14

15 Difference in Tax Rate & Loss Carryforwards (Ref.) FY1 Reconciliation Between Statutory Tax Rate and Effective Tax Rate Rate (%) <ref.> Amount (bn JPY) Income before income tax 48.6 Statutory income tax rate 4.7% (main factors of difference) - Income taxes: correction 5.7% Amortization of goodwill (mainly SOFTBANK MOBILE) 5.1% Change in valuation allowance -5.1% Consolidation adjustments resulting from gain on sale of investments in consolidated subsidiaries 4.2% 2. -Others -2.1% -1.2 Effective income tax rate 48.5% <Reference> Loss Carryforwards (March 211) Company Name FY9/Q4 Balance (taxable income based) Occurred During FY1 (taxable income based) Utilized During FY1 (taxable income based) Other Variances FY1/Q4 Balance (taxable income based) Deferred Tax Assets (tax based) Expiry Date SOFTBANK TELECOM Mar 213- Mar 216 SOFTBANK BB Others Mar 213- Mar 218 Mar 212- Mar 218 Total Valuation allowance Deferred tax assets relating to loss carryforwards on B/S (total amount)

16 Scope of Consolidation/Scope of Equity Method Number of Companies Consolidated subsidiaries 117 Name of Core Companies SOFTBANK MOBILE, SOFTBANK BB, SOFTBANK TELECOM, Yahoo Japan, SOFTBANK Holdings Inc., etc. Newly consolidated subsidiaries 12 * Impacts by the changes in scope of consolidation of SAIF (SAIF and its 6 consolidated subsidiaries ) Subsidiaries excluded from consolidation 4 Non-consolidated subsidiaries (3=1+2) 61 Insignificant small companies Non-consolidated subsidiaries under the equity method (1) 4 Entities newly accounted under the equity method - Entities newly excluded from the equity method 2 Affiliated companies under the equity method 69 Entities newly accounted under the equity method 24 Gung Ho Online Entertainment, Alibaba Group Holding Limited, Renren Inc. (former Oak Pacific Interactive), etc. *Impact of the changes in scope of consolidation of SAIF (SAIF and its 12 affiliated companies under the equity method ), USTREAM, Inc., Wireless City Planning Inc., PPLive Corporation (former Synacast Corporation), etc. Entities no longer accounted under the equity method 13 *SAIF Non-consolidated subsidiaries not under the equity method (2) 57 Insignificant small companies Affiliated companies not under the equity method (4) 23 Insignificant small companies Net loss, interest-bearing debt at non-consolidated subsidiaries and affiliates not accounted for under the equity method Number of Companies Net Loss (after consideration of economic interest) Interest-bearing Debt (not within the SB Group) Non-consolidated subsidiaries (3) 61 JPY.bn JPY.34bn Affiliates not accounted for by the equity method (4) 23 JPY -.24bn - Note 1: the impact of changes in scope of consolidation of SB Asia Infrastructure Fund L.P.(SAIF): Effective April 1, 21, certain subsidiaries of the Company that apply generally accepted accounting principles in the United States of America adopted Accounting Standards Codification (ASC) 81, Consolidations. As a result of the application of the accounting standard, the scope of SAIF changed from an affiliate under equity method to a consolidated subsidiary. The number of companies moved due to this change was; 7 newly consolidated companies, 12 companies newly accounted under the equity method, and 1 company no longer accounted under the equity method. 2: SOFTBANK CORP. owns 1% shares issued by WILLCOM, Inc. However, WILLCOM, Inc. is in the process of reorganization under the Corporate Reorganization Act and the Company does not have effective control over WILLCOM, Inc. Therefore, WILLCOM, Inc. is not treated as a subsidiary and not included in any of the above figures. 16

17 Accounting Consolidated B/S Analysis 17

18 Consolidated B/S Summary Current Assets SBM Others Current Liabilities 1, , , , , , Mar 21 Mar 211 Mar 21 Mar 211 Fixed Assets 2, ,791.7 Long-term Liabilities 1,85. 1,943. 2,12. 2, , , ,72.8 Mar 21 Mar 211 SBM: SOFTBANK MOBILE Mar 21 Mar

19 Consolidated B/S (1) Current Assets Assets Mar 21 Mar 211 Variance Outline Current assets 1, , SBM 1,93.8 1, Others Cash and deposits Increase provided by operating activities (+624.1), outlay due to acquisition of fixed assets (-145.) repayment of SBM loan(-214.1) SBM Securitization of installment sales receivables (procured +1., repaid ) Payment of additional entrustment for debt assumption (-75.) Sale and lease back of equipment newly acquired (procured +86.4, repaid ) SB Non-consolidated: Mar 1 (125.8) >> Mar 11 (199.) Breakdown: 31 st to 35 th Unsecured Straight Corporate Bond issue (+233.9), Others Borrowings (+217.), CP (+25.), Redemption of 22 th & 24th Unsecured Straight Corporate Bond and Euro-denominated Senior Notes Due 213 (-15.5) Purchase of marketable and investment securities (-64.8), acquisition of BBM preferred stock and Vodafone subordinated loan (-212.5), Yahoo Japan: Mar 1 (126.9) >> Mar 11 (173.8) Notes and accounts receivable-trade SBM Mobile handset installment sales receivables Mar 1 (432.2) >> Mar 11 (252.1) including sale of installment sales receivables (-239.9) Telecom revenue receivables Mar 1 (141.4) >> Mar 11 (172.3) Mobile handsets sales receivables (to sales agents) Mar 1 (62.7) >> Mar 11 (68.) Others SBB: Mar 1 (67.3) >> Mar 11 (58.5), SBTM: Mar 1 (49.5) >> Mar 11 (44.8) Marketable securities SBM Others SBH: transfer of Yahoo! Inc shares from Investment Securities (+73.5)* Merchandise and finished products SBM Others Deferred tax assets SBM Others Others SBM Others SBH: transfer of derivative assets from fixed assets (+22.2)* Allowance for doubtful accounts SBM Others SB Non-consolidated: SOFTBANK SBM: SOFTBANK MOBILE BBM: BB Mobile SBB: SOFTBANK BB SBTM: SOFTBANK TELECOM SBH: SOFTBANK Holdings Inc. *Please refer to page 13 of SOFTBANK CORP. Consolidated Financial Report For the fiscal year ended March 31,

20 Consolidated B/S (2) Tangible Assets Assets Mar 21 Mar 211 Variance Outline Fixed assets 2, , SBM 1,85. 1, Others Property and equipment, net , SBM Others Building and structures SBM Others Telecommunications equipment SBM Others Telecommunications service lines SBM Acquisition of telecommunications equipment (+23.9) Acquisition of antenna equipment (+14.) Depreciation etc. (-86.8) SBTM: Mar 1 (96.1) >> Mar 11 (98.1) SBB: Mar 1 (26.5) >> Mar 11 (23.3) Others SBTM: Mar 1 (64.8) >> Mar 11 (61.3) Land SBM Others Construction in progress SBM Others Other SBM Others SBM: SOFTBANK MOBILE SBB: SOFTBANK BB SBTM: SOFTBANK TELECOM 2

21 Consolidated B/S (3) Intangible Assets Assets Mar 21 Mar 211 Variance Outline Fixed assets 2, , Intangible assets, net 1, , SBM 1,21.3 1, Others Goodwill SBM Decrease due to regular amortization Others Decrease due to regular amortization Software SBM Others Other SBM Others Investments and other assets SBM Others Investment securities and Investment In unconsolidated sub & affiliates SBM Others Deferred tax assets SBM Others Other SBH: transfer of Yahoo! Inc shares to current assets (-81.6)*, Impacts by the changes in scope of consolidation of SAIF (+22.2)Additional investments in Renren Inc. and investment in PPLive Corporation, Zynga Game Network Inc. SBM Others SBH: transfer of derivative assets to current assets (-25.9) * Allowance for doubtful accounts (long-term) SBM Others Deferred charges SBM Others SBM: SOFTBANK MOBILE SBH: SOFTBANK Holdings Inc. SAIF: SB Asia Infrastructure Fund L.P., PPLive Corporation: changed from Synacast Corporation in April 211 *Please refer to page 14 of SOFTBANK CORP. Consolidated Financial Report For the fiscal year ended March 31,

22 Consolidated B/S (4) Current Liabilities Liabilities Mar 21 Mar 211 Variance Outline Long-term liabilities 1, , SBM Others Accounts payable-trade SBM Others SBB: Mar 1 (43.4) >> Mar 11 (39.3) -6.1 SBTM: Mar 1 (3.9) >> Mar 11 (4.2) Short-term borrowings SBM Repayment of installment sales receivables SB Non-consolidated: Mar 1 (243.2) >> Mar 11 (263.6) Others Yahoo Japan: Mar 1 (1.) >> Mar 11 (-) SBH: transfer of borrowings premised on delivery of Yahoo! Inc. shares from long-term borrowings (+92.7) * Commercial paper SBM Others SB Non-consolidated: Mar 1 (-) >> Mar 11 (25.) Current portion of corporate bonds SBM SB Non-consolidated: transfer from long-term account of 25 th &27 th Unsecured Straight Others Corporate Bond (+113.5) Redemption of 22 th & 24 th Unsecured Straight Corporate Bond (-54.4) SBTM: transfer of 2nd series Unsecured Straight Bond from long-term account (+15.) Accounts payable-other SBM Payment of additional entrustment for debt assumption (-75.) 94.8 Accounts payable related to facilities (+177.) Others Current portion of lease obligations SBM Others Other SBM Income taxes payable etc. (local taxes) Mar 11 (29.6) Others Income taxes payable etc. at BBM: Mar 11 (5.9), Yahoo Japan: Mar 11 (32.4) SB Non-consolidated: SOFTBANK SBM: SOFTBANK MOBILE SBB: SOFTBANK BB SBTM: SOFTBANK TELECOM SBH: SOFTBANK Holdings Inc. BBM: BB Mobile *Please refer to page 14 of SOFTBANK CORP. Consolidated Financial Report For the fiscal year ended March 31,

23 Consolidated B/S (5) Long-term Liabilities Liabilities Mar 21 Mar 211 Variance Outline Long-term liabilities 2,12. 2, SBM 1, , Others , Corporate bonds SBM Others Long-term debt 1, , SB Non-consolidated: 31 st to 35 th Unsecured Straight Corporate Bond issue (+235.) Transfer to current account of 25 th & 27 th Unsecured Straight Corporate Bond (-113.5) Early redemption of Euro-denominated Senior Notes due 213 (-47.6) SBTM: transfer of 2 nd Series Unsecured Straight Corporate Bond (-15.) SBM 1, SBM loan Mar 1 (986.7) >> Mar 11 (772.5) Vodafone subordinated loan Mar 1 (84.5) >> Mar 11 (-) Installment sales receivables securitization borrowings Mar 1 (44.4) >> Mar 11 (-) Others SB Non-consolidated: Mar 1 (61.3) >> Mar 11 (257.9), SBH: transfer of borrowings premised on delivery of Yahoo! Inc. shares to current liabilities (-1.)* Long-term accounts payable SBM Long-term accounts payable for capital expenditure(+42.3) Others Acquisition of Preferred Stock, etc. Issued to Vodafone Group (+2.) Deferred tax liabilities SBM Others Allowance for point mileage SBM Point service for customers Others Lease obligations SBM Others Other SBM Asset retirement obligations (+3.1) Others Asset retirement obligations (+16.) Acquisition of Preferred Stock, etc. Issued to Vodafone Group: total JPY 412.5bn JPY 2.bn to be paid in Apr 212 recorded as long-term accounts payable 1st payment of JPY 212.5bn was done in Q3 Acquisition of Preferred Stock, etc. Issued to Vodafone Group Loan receivable from SBM to Vodafone Overseas Finance Limited (acquired by SB) was eliminated in consolidation Note: Vodafone Group indicates Vodafone International Holdings B.V. and Vodafone Overseas Finance Limited SB Non-consolidated: SOFTBANK SBM: SOFTBANK MOBILE SBH: SOFTBANK Holdings Inc. *Please refer to page 15 of SOFTBANK CORP. Consolidated Financial Report For the fiscal year ended March 31,

24 Consolidated B/S (6) Equity Equity Mar 21 Mar 211 Variance Outline Equity Shareholders equity Common stock Additional paid-in capital Accumulated deficit/retained earnings Treasury stock Valuation and translation adjustments Unrealized gain on available-for-sale securities Deferred gain on derivatives under hedge accounting Foreign currency translation adjustments Net income (+189.7), dividend (-5.4) Shares of Yahoo! Inc. Mar 11 (36.7) Stock acquisition rights Minority interests BBM: preferred stock issued to Vodafone International Holdings B.V. (acquired by SB) was eliminated in consolidation (-3.) Yahoo Japan: Mar 1 (174.3) >> Mar 11 (215.6) Impacts by the changes in scope of consolidation of SAIF(+25.2) SB: SOFTBANK BBM: BB Mobile SAIF: SB Asia Infrastructure Fund L.P. 24

25 [Equity] Foreign Currency Translation Adjustments 6 Foreign currency translation adjustments account Jun 7 Sep Dec Mar 8 Jun Sep Dec Mar 9 Jun Sep Dec Mar 1 Jun Sep Dec Mar 11 <JPY> <Reference> Main exchange rate trend GBP/JPY (TTM) EUR/JPY (TTM) USD/JPY (TTM) Jun 7 Sep Dec Mar 8 Jun Sep Dec Mar 9 Jun Sep Dec Mar 1 Jun Sep Dec Mar 11 25

26 [Equity] Shareholders Equity Common stock & additional paid-in capital* Treasury stock Deferred gain (loss) on derivatives under hedge accounting Shareholders' equity Accumulated deficit/retained earnings Unrealized gain on available-for-sale securities Foreign currency translation adjustments * Including cash receipts for new stock subscriptions Equity ratio 13.3% Mar 8 Jun Sep Dec Mar 9 Jun Sep Dec Mar 1 Jun Sep Dec Mar 11 *Including cash receipts for new stock subscriptions. 26

27 Accounting Consolidated CF Analysis 27

28 Consolidated Cash Flow Main Breakdown Mar 1 Mar 11 Financing CF Investing CF Operating CF Income taxes paid Main Item BB Mobile s income tax under consolidated tax return SBM local taxes Yahoo Japan Consolidation (Incl. Income taxes - correction -27.3) Acquisition of Preferred Stock, etc. Issued to Vodafone Group Total acquisition cost: st payment: paid in Q3 2 nd payment :2. to be paid in April 212 (recorded as long-term accounts payable) Cash and cash equivalents at the end of the year Payment of additional entrustment for debt assumption Repayment of lease obligations Sale and lease back of equipment newly acquired Redemption of bonds Bonds issued Proceeds from long-term debt Purchase of property & equipment & intangibles Income taxes paid Decrease in notes & accounts receivable trade (non-installment) Amortization of goodwill Depreciation & amortization Income before income taxes Repayment of longterm debt Increase in short-term borrowings net Purchase of marketable and investment securities Decrease in mobile handset installment receivables Cash and cash equivalents at the beginning of the year 28 Payments for repurchase of minority interests and long-tem debt Variance in commercial paper Note: significant items from the consolidated cash flow statement are shown here. Vodafone Group indicates Vodafone International Holdings B.V. and Vodafone Overseas Finance Limited

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31 Finance Yoshimitsu Goto General Manager Finance SOFTBANK CORP. 31

32 Achievements to FY21 Financial Strategies Towards ZERO net interest-bearing debt 1. Further strengthening of financial base Thoroughness towards debt reduction through sustained high level FCF. Appropriate distribution of investment CF (CAPEX or investment in business). Improve corporate value as result of accelerated cultivation of group companies. 2. Realization of appropriate credit spread Continue conservative financial planning and operation regardless of financial market. Expand disclosure content of financials and provide appropriate guidance. Measures to improve credit rating (improvement of various financial indexes, concrete consideration of WBS refinance). 3. Investor-oriented (financial institutions and markets) financial activities Continue to enhance relationships with domestic and international financial institutions. Maintain various procurement methods (loan, corporate bonds, lease, securitization, etc.). Achieve bond price and issuance spread appropriately reflecting SOFTBANK s credit. Approach all layers of investors through IR activities. FCF FCF JPY JPY 561.3bn 561.3bn (144% (144% YoY) YoY) Net Net interest-bearing interest-bearing debt debt reduction reduction approx. approx. JPY JPY 3.bn 3.bn (reduced (reduced approx. approx. JPY JPY 1.2t 1.2t from from Jun Jun 6) 6) CAPEX CAPEX JPY JPY 42.5bn 42.5bn Investments Investments in in Businesses; Businesses; PPlive, PPlive, Zynga, Zynga, Renren, Renren, etc. etc. Return Return to to the the first first A A range range rating rating in in yrs yrs JCR JCR (BBB+ (BBB+ >> >> A-) A-) Large Large improvement improvement of of bond bond spread spread Enhance Enhance flexibility flexibility of of WBS WBS refinance refinance through through BBM BBM preferred preferred stock stock acquisition acquisition Procurement Procurement through through bonds: bonds: JPY JPY 235.bn 235.bn (incl. (incl. JPY JPY 13.bn 13.bn issued issued to to individuals) individuals) Focus Focus on on IR IR activities activities with with domestic/ domestic/ international international investors investors 32

33 Main Financing Activities of FY21 <Main Financing Activities> Date Content Amount 21 June Issue 31 st Unsecured Straight Corporate Bond 25. June Issue 32 nd Unsecured Straight Corporate Bond 25. Sep Issue 33 rd Unsecured Straight Corporate Bond (Fukuoka SoftBank HAWKS Bond) 13. Sep Renewal of credit line facility, etc Dec Acquisition of preferred stock, etc. issued by BB Mobile Corp. (from Vodafone Group) *1 211 Jan Issue 34 th Unsecured Straight Corporate Bond 45. Jan Issue 35 th Unsecured Straight Corporate Bond 1. <Main Investments in Businesses> Zynga Game Network Inc. Company Name Invested Amount USD15mil (JPY 13.7bn) Renren Inc. (former Oak Pacific Interactive) *Listed on the New York Stock Exchange on May 4, 211. Market capitalization of approx. JPY 6.bn (USD 7.2bn on May 4, 211). JPY 16.4bn (accumulated total JPY 41.8bn) investment ratio: 33.4% *2 PPLive Corporation (former Synacast Corporation) investment ratio: 35% *3 Note: Vodafone Group indicates Vodafone International Holdings B.V. and Vodafone Overseas Finance Limited *1. The amount includes JPY 212.5bn paid in Dec 21. The remains are scheduled to be paid in Apr 212. *2. Ratio based on voting rights before dilution basis. *3. Ratio based on voting rights after dilution basis. 33

34 EBITDA and EBITDA Margin (by segment) Consolidated EBITDA margin exceeded 3%. Consolidated EBITDA EBITDA Margin Other BB Infrastructure Mobile Communications 1, Internet Culture Fixed-line Telecommunications % 55% 57% Internet Culture % 4% 3% 2% 1% 32% 3% 29% 19% 32% 32% 31% Consolidated 24% Broadband Infrastructure Mobile Communications Fixed-line Communications FY9 FY1 FY9 FY1 Note: 1. EBITDA = operating income (loss) + depreciation and amortization (including amortization of goodwill), and loss on disposal of fixed assets included in operating expenses. 2. Segment financial results for FY29 are shown based on the new standard for comparison purposes only. % 34

35 Interest-bearing Debt (by procurement method) 2,5 2,392. 2, , 2, ,32.6 2, , , , Securitization of installment sales receivables obligations SBM loan Vodafone subordinate loan 1,5 1, 5 1, , , Jun 9 Sep Dec Mar 1 Jun Sep Dec Mar 11 Yahoo Japan borrowings Borrowings from other financial institutions, etc. Bonds & CP Breakdown of borrowings from other financial institutions, etc. SOFTBANK (bank loan) 47.5 SOFTBANK (stock lending) 114. Major overseas subsidiaries loans from financial institutions 93.3 Other bank loans 4.5 Total Note: 1. Interest-bearing debt= short-term borrowings + commercial paper + bonds due for redemption within 1 year + bonds + long-term borrowings. Lease obligations are not included. 2. SBM loan: from March 21, this excludes the corporate bonds (WBS Class B2 Funding Notes, issued by J-WBS Funding K.K.), which was substantially a part of SBM loan, with a face value of JPY 27.bn acquired by SOFTBANK CORP. that were issued under the whole business securitization scheme associated with the acquisition of Vodafone K.K. 35

36 Lease Obligations Lease balance remains stable. 8 Finance leases (accounted for as operating lease transactions) * 6 Finance leases (lease obligations) Jun 9 Sep Dec Mar 1 Jun Sep Dec Mar 11 *Finance lease transactions in which the ownership of leased assets was not transferred to lessees and contracted before April 1,

37 Cash Position Sustain abundant cash position. 1, Unused portion of credit line facility Cash and deposits, and marketable securities Jun 9 Sep Dec Mar 1 Jun Sep Dec Mar 11 Note:1.Cash position = cash and cash deposits + marketable securities included in current assets. (excludes Yahoo! Inc. shares held by a subsidiary of SOFTBANK CORP. in the United States of America). 2. Unused portion of credit line facility = credit line facility size - credit line borrowings. 37

38 Net Interest-bearing Debt Steady reduction of approx. JPY 3.bn YoY. 2, 1,95.1 1, , ,5 1,51. 1, ,455. 1, ,29.6 1, 5 Jun 9 Sep Dec Mar 1 Jun Sep Dec Mar 11 Note: 1. Net interest-bearing debt = interest-bearing debt - cash position. 2. Interest-bearing debt: short-term borrowings + commercial paper + bonds due for redemption within 1 year + bonds + long-term borrowings. Lease obligations are not included. From March 21, this excludes the corporate bonds (WBS Class B2 Funding Notes, issued by J-WBS Funding K.K.) with a face value of JPY 27.bn acquired by SOFTBANK CORP. that were issued under the whole business securitization scheme associated with the acquisition of Vodafone K.K. 3. Cash position = cash and cash deposits + marketable securities included in current assets. (excludes Yahoo! Inc. shares held by a subsidiary of SOFTBANK CORP. in the United States of America). 38

39 Interest-bearing Debt Long/Short and Fixed/Variable Ratio Trend Interest-bearing Debt Long/Short Ratio Interest-bearing Debt Fixed/Variable Ratio 1% 9% 8% 7% 6% Long-term Short-term Fixed Variable 1% 9% % 7% 6% 5% 4% 3% 1,76.8 1,73.1 1, % 4% 3% 1,99.3 1, , % 2% 1% 1% % Mar 9 Mar 1 Mar 11 % Mar 9 Mar 1 Mar 11 Note: interest-bearing debt: short-term borrowings + commercial paper + bonds due for redemption within 1 year + bonds + long-term borrowings. Lease obligations are not included. From March 21, this excludes the corporate bonds (WBS Class B2 Funding Notes, issued by J-WBS Funding K.K.) with a face value of JPY 27.bn acquired by SOFTBANK CORP. that were issued under the whole business securitization scheme associated with the acquisition of Vodafone K.K. 39

40 Credit Spread CDS Bond Spread (bp) 2, 1,5 SOFTBANK CDS (5 years) 26 th Unsecured Straight Corporate Bond (3.1 years remaining) (bp) th Unsecured Straight Corporate Bond (3.1years remaining) 28 th Unsecured Straight Corporate Bond (1.2 years remaining) 3 th Unsecured Straight Corporate Bond (3.9 years remaining) 31 st Unsecured Straight Corporate Bond (2.1 years remaining) 1, Apr Oct Apr Oct Apr Oct Apr Apr Oct Apr Oct Apr Oct Apr FY8 FY9 FY1 FY11 FY8 FY9 FY1 FY11 Source: CDS; Bloomberg data Bond spread data; calculated by SOFTBANK CORP. based on Japan Securities Dealers Association data. CDS: Credit Default Swap 4

41 Early Redemption of Euro-Yen Denominated Convertible Bond <JPY> 3,5 Trend of SOFTBANK Stock Price SOFTBANK s stock price exceeds JPY 2,977 for 3 consecutive trading days Exercise the early redemption option on 1% of principal of Convertible bond due 214 on May 9 (Planned early redemption day: June 27) 3, JPY 2,977 15% of the conversion price of Convertible bond due 214 2,5 2, 29 Apr July Oct 21 Jan 3 consecutive trading days Apr <Reference> Convertible bond due 214 Outstanding amount: JPY 49.9bn (as of Mar 211) Interest rate: 1.75% SOFTBANK may, having given prior irrevocable notice to the bondholders, redeem all of the convertible bonds then outstanding at 1 per cent. of their principal amount, together with the interest accrued to the date fixed for such redemption, provided that the closing stock price exceeds 15% of conversion price for 3 consecutive trading days. 41

42 Bond Redemption Schedule Sustain sufficient repayment resources. 1, 8 Repayment Capability Unused portion of credit line facility Cash and cash deposits, and marketable securities Corporate Bonds Redemption Schedule SB straight bond SBTM straight bond Mar 1 Mar Q1 Q2 Q3 Q4 FY11 SB: SOFTBANK SBTM: SOFTBANK TELECOM Note: 1. Unused portion of credit line facility = credit line facility size - credit line borrowings. 2. Cash position = cash and cash deposits + marketable securities included in current assets (excludes Yahoo! Inc. shares held by a subsidiary of SOFTBANK CORP. in the United States of America). 42

43 Outstanding Balance of SBM Loan 1,4 JPY 1.366t 1,2 1, Reduction of approx. JPY 74.bn JPY 626.9bn (Apr 211) Minimum case 2 Inception Inception of of borrowings borrowings (Nov 26) (Nov 26) (CY) Note: SBM Loan: from March 21, this excludes the corporate bonds (WBS Class B2 Funding Notes, issued by J-WBS Funding K.K.), which was substantially a part of SBM loan, with a face value of JPY 27.bn acquired by SOFTBANK CORP. that were issued under the whole business securitization scheme associated with the acquisition of Vodafone K.K. 43

44 Outstanding Balance of SBM Loan Approx. JPY 12.bn was repaid in April. 1,4 1,2 1, 8 1, , , <times> Mobile Communications leverage ratio 1.3 times (Mar 211) Net interest-bearing debt basis.6 times Mar Mar Mar Mar Mar Apr Note: 1. SBM loan: from March 21, this excludes the corporate bonds (WBS Class B2 Funding Notes, issued by J-WBS Funding K.K.), which was substantially a part of SBM loan, with a face value of JPY 27.bn acquired by SOFTBANK CORP. 2. Leverage ratio= interest-bearing debt (Mobile Communications) / EBITDA (Mobile Communications). 3. Net interest-bearing debt = interest-bearing debt - cash position. Interest-bearing debt: short-term borrowings + commercial paper + bonds due for redemption within 1 year + bonds + long-term borrowings. Lease obligations are not included. Cash position = cash and cash deposits + marketable securities included in current assets. (excludes Yahoo! Inc. shares held by a subsidiary of SOFTBANK CORP. in the United States of America).. 44

45 WBS Refinance Instruments of WBS debt and preferred stock, etc. (image) SBM Loan JPY 1,366.bn Subordinated loan (SBM) JPY 84.5bn Preferred stock (BBM) JPY 42.bn Inception of WBS (Nov 26) SBM Loan JPY 626.9bn Apr 211 SBM SBM Loan Loan Acquisition by SOFTBANK approx. approx. JPY JPY 626.9bn 626.9bn (as (as of of Apr Apr 211) 211) Accounts Accounts payable payable JPY JPY 2.bn 2.bn *1 *1 to to Vodafone Vodafone Group Group (to (to be be paid paid in in Apr Apr 212) 212) Consolidated cashflow operation becomes possible after full repayment of non recourse loan Note: Vodafone Group indicates Vodafone International Holdings B.V. and Vodafone Overseas Finance Limited SBM: SOFTBANK MOBILE, BBM: BB Mobile *1. SOFTBANK acquired proffered stock, etc. issued by BBM, from Vodafone Group, on December 21. JPY 2.bn out of the acquisition amount is scheduled to be paid on April WBS: whole business securitization scheme associated with the acquisition of Vodafone K.K. 3. From March 21, this excludes the corporate bonds (WBS Class B2 Funding Notes, issued by J-WBS Funding K.K.), which was substantially a part of SBM loan, with a face value of JPY 27.bn acquired by SOFTBANK CORP. 45

46 Improve Indexes: (1) Interest-bearing Debt/EBITDA Multiple <times> Net interest-bearing debt/ebitda Multiple to mark below Interest-bearing Debt/EBITDA Multiple <times> 8. (Ref.) Net Interest-bearing Debt/EBITDA Multiple FY6 FY7 FY8 FY9 FY1. FY6 FY7 FY8 FY9 FY1 Note: 1. Net interest-bearing debt = interest-bearing debt - cash position. 2. Interest-bearing debt= short-term borrowings + commercial paper + bonds due for redemption within 1 year + bonds + long-term borrowings. Lease obligations are not included. From March 21, this excludes the corporate bonds (WBS Class B2 Funding Notes, issued by J-WBS Funding K.K.) with a face value of JPY 27.bn acquired by SOFTBANK CORP. 3. Cash position = cash and cash deposits + marketable securities included in current assets. (excludes Yahoo! Inc. shares held by a subsidiary of SOFTBANK CORP. in the United States of America). 4. Interest-bearing debt and net interest-bearing debt of FY26 are calculated with retroactive adjustments by adding the cash receipts as collateral relating to marketable security lending transactions. 5. EBITDA = operating income (loss) + depreciation and amortization (including amortization of goodwill), and loss on disposal of fixed assets included in operating expenses. 46

47 Improve Indexes: (2) Debt/Equity Ratio Solid improvement. <times> Debt Equity Ratio <times> Net Debt Equity Ratio 12. D/E ratio 12. Net D/E ratio D/E ratio (excl. Mobile Communications) Net D/E ratio (excl. Mobile Communications) Mar 7 Mar 8 Mar 9 Mar 1 Mar 11 Mar 7 Mar 8 Mar 9 Mar 1 Mar 11 Note: 1. D/E ratio = interest-bearing debt/shareholders equity. 2. Net D/E ratio = interest-bearing debt/shareholders equity. 3. Net interest-bearing debt = interest-bearing debt - cash position. 4. Interest-bearing debt= short-term borrowings + commercial paper + bonds due for redemption within 1 year + bonds + long-term borrowings. Lease obligations are not included. From March 21, this excludes the corporate bonds (WBS Class B2 Funding Notes, issued by J-WBS Funding K.K.) with a face value of JPY 27.bn acquired by SOFTBANK CORP. 5. Cash position = cash and cash deposits + marketable securities included in current assets. (excludes Yahoo! Inc. shares held by a subsidiary of SOFTBANK CORP. in the United States of America). 6. Excluding Mobile communications: balances relating to Mobile communications business have been deducted from consolidated interest-bearing debt and net interest-bearing debt balance respectively. 7. Interest-bearing debt and net interest-bearing debt of March 27 are calculated with retroactive adjustments by adding the cash receipts as collateral relating to marketable security lending transactions. 47

48 Improve Indexes: (3) Equity Ratio Equity ratio recovered to level before acquisition of Mobile Communications business. 2, 1,5 Equity Ratio (Ref.) Equity Ratio * <considering unrealized gain> Shareholders' equity Equity ratio 3% 2% 2, 1,5 1, % 23.5% 1,237.7 Shareholders' equity (considering unrealized gain) Equity ratio (considering unrealized gain) 25.5% 1, % 21.7% 22.5% 1,15. 1, % 2% 1, 13.4% 13.3% 1, % % % % % 5 1% Mar 6 Mar 7 Mar 8 Mar 9 Mar 1 Mar 11 % Mar 6 Mar 7 Mar 8 Mar 9 Mar 1 Mar 11 Note: shareholders equity and equity ratio considering unrealized gain are calculated by SOFTBANK CORP. based on the share price of investment securities (listed & public companies only) directly held by SOFTBANK CORP. and its domestic overseas wholly-owned subsidiaries, etc. at each fiscal year-end. Refer to the page 8 of FY21 Analyst Meeting Supplemental Data for calculation basis. % 48

49 Trend of Credit Rating of SOFTBANK Upgraded by JCR (BBB+ A-) A/A2 A /A3 BBB+/Baa1 Return to first A range rating in approx. 11 yrs JCR (A-) BBB/Baa2 BBB /Baa3 BB+/Ba1 S&P (BB+) BB/Ba2 BB /Ba3 Moody s (Ba2) B+/B1 Acquisition of JAPAN TELECOM Acquisition of Vodafone K.K (CY) 49

50 Trend of Credit Ratings of WBS Class B: upgraded by Moody s (Baa3 Baa1) JCR (AA-) AA /AA3 A+/A1 A/A2 A /A3 S&P (A) Moody s (A3) Class A BBB+/Baa1 BBB/Baa2 BBB /Baa3 S&P (BBB+) JCR (A-) Moody s (Baa1) Class B BB+/Ba (CY) Note: WBS stands for Whole Business Securitization scheme associated with the acquisition of Vodafone K.K. 5

51 Net Interest-bearing Debt Reduction Target <JPY> 2.4t 1.9t 1.2t Half Zero June 26 FY28 FY21 FY211 (target) FY214 (target) Note: 1. Net interest-bearing debt = interest-bearing debt - cash position. 2. Interest-bearing debt: short-term borrowings + commercial paper + bonds due for redemption within 1 year + bonds + long-term borrowings. Lease obligations are not included. From March 21, this excludes the corporate bonds (WBS Class B2 Funding Notes, issued by J-WBS Funding K.K.) with a face value of JPY 27.bn acquired by SOFTBANK CORP. that were issued under the whole business securitization scheme associated with the acquisition of Vodafone K.K. 3. Cash position = cash and cash deposits + marketable securities included in current assets. (excludes Yahoo! Inc. shares held by a subsidiary of SOFTBANK CORP. in the United States of America). 4. Half: half the end of FY28 level. 51

52 Commitments Unchanged Cumulative 3 years FCF * : at least JPY 1t (FY29-211) Net Interest-bearing debt * to half (by end of FY211) Net Interest-bearing debt * to zero (by end of FY214) No major investments until the achievement of the commitments Notes: 1. Free cash flow (FCF, cash and deposits) = cash flows from operating activities + cash flows from investing activities. 2. Net interest-bearing debt = interest-bearing debt cash position. 3. Interest-bearing debt: short-term borrowings + commercial papers + bonds due for redemption within 1 year +bonds + long-term debt. Lease obligations are not included. From March 21 this excludes the corporate bonds (WBS Class B2 Funding Notes, issued by J-WBS Funding K.K.) with a face value of JPY 27.bn acquired by SOFTBANK CORP. that were issued under the whole business securitization scheme associated with the acquisition of Vodafone K.K. 4. Cash position = cash and cash deposits + marketable securities included in current assets (excludes Yahoo! Inc. shares held by a subsidiary of SOFTBANK CORP. in the United States of America). 52

53 FY211 Financial Strategies Balance between growth strategy and strengthening financial base 1. Gain foothold for further growth - Prioritized distribution of FCF to CAPEX - Support strategic business investments actively - Focus on value improvement of companies invested in 2. New phase of credit improvement - Full repayment of non recourse loan after WBS refinance - Solid reduction of debt towards zero net interest-bearing debt - Improve credit rating by strengthening financial base and WBS refinance 3. Thorough focus on investors and market - Continue to pursue various & flexible procurement methods - Continue to enhance relationships with domestic and international financial institutions, access main markets 53

54 (Reference) Corporate Bond Details Company name Bond Issue date Maturity date SOFTBANK CORP. Interest rate (%/year) Collateral Mar 1 balance Mar. 11 balance < mil JPY > Change 24 th series Unsecured Straight Bond (Fukuoka SoftBank HAWKS bond) 27/4/26 21/4/ None 2, -2, 22 nd series Unsecured Straight Bond 25/9/14 21/9/ None 34,4-34,4 27 th series Unsecured Straight Bond (Fukuoka SoftBank HAWKS bond) 29/6/11 211/6/1 5.1 None 6, 6, - 25th series Unsecured Straight Bond 27/6/19 211/6/ None 53,5 53,5-28 th series Unsecured Straight Bond 29/7/24 212/7/ None 3, 3, - 29 th series Unsecured Straight Bond (Fukuoka SoftBank HAWKS bond) 29/9/18 212/9/ None 65, 65, - Convertible Bond due 213 * 23/12/3 213/3/ None 49,998 49, th series Unsecured Straight Bond 21/6/2 213/5/ None 25, 25, 33 th series Unsecured Straight Bond 21/9/17 213/9/ None 13, 13, Euro-denominated Senior Notes due /1/12 213/1/ None 47,625 (Eur 355mil) -47,625 (-Eur 355mil) Convertible Bond due 214 * 23/12/3 214/3/ None 5, 49, th series Unsecured Straight Bond 27/6/19 214/6/ None 14,9 14,9-3 th series Unsecured Straight Bond 21/3/11 215/3/ None 3, 3, - 32 th series Unsecured Straight Bond 21/6/2 215/6/ None - 25, 25, 34 th series Unsecured Straight Bond 211/1/25 216/1/ None - 45, 45, 35 th series Unsecured Straight Bond 211/1/25 218/1/ None - 1, 1, SOFTBANK TELECOM 2 nd series Unsecured Straight Bond 24/12/7 211/12/ None 15, 15, - Phoenix JT Subordinated Notes Due /12/24 216/12/ None 32,4 32,4 - Other corporate bonds Total , ,89 132,966 * Early redemption is possible on SOFTBANK's request for Convertible bond due 213 and Convertible bond due 214, in case certain conditions are met. 54

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57 Operation Kazuhiko Fujihara Senior Vice President, CFO, Director of the Board SOFTBANK MOBILE Corp. Senior Vice President & CFO, Director SOFTBANK BB Corp. Director SOFTBANK TELECOM Corp. 57

58 Overview of 3 Telecommunications Businesses Large increase in profit in Mobile Communications led consolidated operating income to reach record high. Broadband Infrastructure Fixed-line Telecommunications Mobile Communications (Reference) Broadband Infrastructure + Fixed-line Telecommunications Operating income YoY +9.6 Operating income YoY SOFTBANK consolidated: Mobile Communications: % to SB consolidated: 87% FY9 Operating income FY1 FY9 FY1 FY9 FY1 FY9 FY1 EBITDA Operating income EBITDA FY9 FY1 FY9 FY1 Operating income EBITDA Note 1. Segment financial results for FY29 are shown based on the new standard for comparison purposes only. 2. EBITDA = operating income (loss) + depreciation and amortization (including amortization of goodwill), and loss on disposal of fixed assets included in operating expenses. 58