Earnings Results for the Nine-month Period Ended December 31, 2009 (Apr. Dec. 2009) Analyst Meeting. February 3, 2010 SOFTBANK CORP.

Transcription

1 Earnings Results for the Nine-month Period Ended December 31, 29 (Apr. Dec. 29) Analyst Meeting February 3, 21 SOFTBANK CORP.

2 Disclaimer This material is made based on information available at the time of writing. Statements in this material 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, continuing decline in the general economic conditions, general market conditions, customer demand for products and services, increased competition, inherent risk 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 contained herein regarding companies other than SOFTBANK CORP. and other companies of the SOFTBANK Group is quoted from public sources and others, and we have not verified and we are not responsible for the accuracy of the information. SOFTBANK CORP. expressly disclaims any obligation or responsibility to update or 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 material is at your own risk. 2

3 Accounting Consolidated P/L Analysis Consolidated B/S Analysis Consolidated CF Analysis Finance 3 Operating Broadband Infrastructure Segment Fixed-line Telecommunications Segment Mobile Communications Segment

4 4

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

6 Accounting Consolidated P/L Analysis 6

7 Consolidated P/L Summary 3, 2, (FY) 2,673. Q Net Sales Operating Income Ordinary Income Net Income +3.2% , , Q Q2 1, Q FY8 FY % % FY8 FY9 FY8 FY9 Q3 Q2 Q1 Q4 (FY) FY8 +63.% 94.8 FY9 7

8 Consolidated Net Sales 1, , (+3.2%) 2,45.3 1,264.2 Mobile Communications Mobile Communications bn - Increase in telecom service revenue +66.bn Increase in subscribers +66.4bn Decrease in ARPU -3.6bn - Increase in revenue from sales of mobile handsets and accessories +47.4bn Broadband Infrastructure -23.bn - Decrease in the number of Yahoo! BB ADSL charged lines -15.bn - Decrease in Yahoo! BB ADSL ARPU -.4bn - Decrease in ODN -2.1bn Fixed-line Telecommunications -9.9bn Broadband Infrastructure Fixed-line Telecommunications Internet Culture e-commerce Others Elimination - Increase in OTOKU Line sales +8.6bn - Decrease in MYLINE sales -6.3bn - Decrease in international traffic sales -5.8bn - Impact of segment transfer of former SOFTBANK IDC -7.7bn Internet Culture +1.bn - Decrease in advertising business revenue -1.bn - Increase in business service revenue +3.6bn - Increase in personal service revenue +4.9bn FY8/Q1-3 FY9/Q1-3 8

9 Consolidated Operating Income FY8/Q (+33.4%) FY9/Q1-3 Mobile Communications Broadband Infrastructure Fixed-line Telecommunications Internet Culture e-commerce Elimination Mobile Communications +8.2bn - Increase in net sales bn - Increase in cost of sales and selling, general and administrative expenses -33.2bn (main factors for increase) - Increase in cost of sales for mobile handsets resulting from an increase in handsets shipped. - Sales commissions grew on the increase in the number of handsets sold. (main factors for decrease) - Decrease in provision for allowance for doubtful accounts, and consignment fees. Broadband Infrastructure +2.8bn - Decrease in net sales -23.bn - Decrease in cost of sales, such as lease fees, depreciation and amortization etc bn - Decrease in selling, general and administrative expenses (main factors) -Decrease in sales commission and sales promotion expense +9.4bn Fixed-line Telecommunications +3.bn - Decrease in net sales (excluding sales of former SOFTBANK IDC) -2.1bn - Decrease in cost of sales, such as usage fees of telecommunication equipment etc. +5.5bn - Impact of segment transfer of former SOFTBANK IDC -1.6bn Internet Culture +6.4bn -Increase in net sales +1.bn -Yahoo Japan: decrease in selling, general and administrative expenses, such as consignment fees etc. +2.9bn 9

10 Non-operating Income/Expense and Ordinary Income Non-operating Income/Expense Other non-operating expense Interest expense Other non-operating income Equity in earnings (loss) of affiliated companies Foreign exchange gain Interest income Non-operating income/expense (NET) FY8/Q1-3 Ordinary income Ordinary Income Increase in operating income Increase in non-operating income/expense (net) FY9/Q1-3 Ordinary income (61.1%) FY8/Q1-3 FY9/Q1-3 1

11 Special Income/Loss and Income Before Income Taxes and Minority Interests Other special loss Loss on retirement of non current assets Unrealized appreciation (loss) on v aluation of inv estments at subsidiaries in the U.S., net* Valuation loss on inv estment securities Other special income Dilution gain from changes in equity interest Gain on sale of inv estment securities Special income/loss(net) Special Income/Loss FY8/Q1-3 Income before income taxes & minority interests Increase in ordinary income Net of decrease in special income/loss < bn JPY> Income Before Income Taxes and Minority Interests FY9/Q1-3 Income before income taxes & minority interests (+34.7%) FY8/Q1-3 FY9/Q1-3 *Unrealized appreciation (loss) on valuation of investments and gain (loss) on sale of investments at subsidiaries in the U.S, net. 11

12 Tax and Other Adjustments FY9/Q1-3 Breakdown of Tax Expenses < bn JPY> A Income taxes; current 89.5 (main breakdown) 1. Yahoo Japan 2. SBM local taxes (out of scope for BBM consolidated tax return) 3. BBM income taxes under consolidated tax return (all loss carryforwards fully utilized) B Income taxes; deferred (main breakdown) SBM temporary difference (mainly loss on retirement of 2G mobile phone service equipment) 5. BBM utilization of loss carryforwards under consolidated tax return etc. 6. SBM depreciation and amortization adjustments (occurred at time of SBM acquisition) Total income taxes (A+B) 15.2 SBM: SOFTBANK MOBILE BBM: BB Mobile 12

13 Difference in Tax Rate FY9/Q1-3 Reconciliation Between Statutory Tax Rate and Effective Tax Rate Rate(%) Income before income taxes and minority interests Statutory income tax rate 4.7% (main factors of difference) Amortization of goodwill (mainly SBM) 7.7% Change in valuation allowance -2.5% Others -1.% Effective income tax rate 44.9% <reference> Amount (bn JPY) SBM: SOFTBANK MOBILE 13

14 Loss Carryforwards (Dec 9) < bn JPY> Company Name FY8/Q4 Balance (taxable income based) Occurred During FY9/Q1-3 (taxable income based) Utilized During FY9/Q1-3 (taxable income based) Other Variances FY9/Q3 Balance (taxable income based) Deferred Tax Assets (tax based) Expiry Date 77.1 BB Mobile SOFTBANK TELECOM Mar 213- Mar SOFTBANK BB -1.4 Mar Others Mar 21- Mar Total Valuation allowance Deferred tax assets relating to loss carryforwards on B/S (total amount)

15 Accounting Consolidated B/S Analysis 15

16 Consolidated B/S Summary Current Assets SBM Others Current Liabilities 1,52.3 1, ,68.4 1, , , Mar 29 Dec 29 Fixed Assets Mar 29 Dec 29 Long-term Liabilities 2,865. 2, , , , ,16.8 1, , Mar 29 Dec 29 SBM: SOFTBANK MOBILE Mar 29 Dec 29 16

17 Consolidated B/S (1) Current Assets Current assets SBM Others Other SBM Others SBM Others SBM Other SBM Others SBM Others Allowance for doubtful accounts SBM Others Assets Cash and deposits Notes and accounts receivable-trade Merchandise and finished products Deferred tax assets Mar 29 1,52.3 1, Dec 29 1,68.4 1, Variance Outline Increase provided by operating activities ( ) Securitization of installment sales receivables (procured +18.3, repaid ) Sale and lease back of equipment newly acquired (received +45.1, repaid -66.7) Purchase of fixed assets (-146.1), repayment of SBM loan ( -95.8) SB stand-alone: Mar 9 (93.9) >> Dec 9 (12.7) Breakdown: 27 th, 28 th, 29 th Unsecured Straight Corporate Bond issue (+155.), borrowings repaid (-65.9) Yahoo Japan: Mar 9 (16.4) >> Dec 9 (88.5) SBTM: Redemption of 1 st Unsecured Straight Corporate Bond (-45.) Mobile handset installment sales receivables Mar 9 (487.8) >> Dec 9 (44.5) including sale of installment sales receivables (-2.5) Telecom revenue receivables etc. Mar 9 (123.5) >> Dec 9 (134.7) Mobile handsets sales receivables (agents) Mar 9 (66.4) >> Dec 9 (58.) SBB: Mar 9 (68.8) >> Dec 9 (54.1) SBTM: Mar 9 (54.5) >> Dec ) BBM: utilization of loss carryforwards etc. (-23.2) SBB: utilization of loss carryforwards etc. (-7.2) SB: SOFTBANK SBM: SOFTBANK MOBILE SBB: SOFTBANK BB SBTM: SOFTBANK TELECOM BBM: BB Mobile 17

18 Consolidated B/S (2) Tangible Assets Fixed assets SBM Others Property and equipment, net SBM Others Land SBM Others Construction in progress Other Assets Building and structures SBM Others Telecommunications equipment SBM Others Telecommunications service lines SBM Others SBM Others SBM Others Mar 29 2,865. 1, , Dec 29 2, , Variance SBM: SOFTBANK MOBILE SBB: SOFTBANK BB SBTM: SOFTBANK TELECOM SBTM: Mar 9 (7.6) >> Dec 9 (66.2) SBTM: Mar 9 (14.) >> Dec 9 (11.5) Outline Acquisition of telecommunications equipment (+6.6), acquisition of antenna equipment (+6.3), depreciation etc. (-82.2), Retirement related to termination of 2G service and optimization of 3G equipment(-17.2) SBTM: Mar 9 (12.4) >> Dec 9 (96.6) SBB: Mar 9 (27.7) >> Dec 9 (23.1) 18

19 Consolidated B/S (3) Intangible Assets Fixed assets SBM Other SBM Others SBM: SOFTBANK MOBILE SBH: SOFTBANK Holdings Inc. Assets Mar 29 Dec 29 Variance Outline Intangible assets, net 1, , SBM 1,77.4 1, Others Goodwill SBM Decrease due to regular amortization Others Decrease due to regular amortization Software ,865. SBM Retirement related to termination of 2G service and optimization of 3G equipment (-9.8) Others Other SBM Others Investments and other assets SBM Others Investment securities and Investment In unconsolidated sub & affiliates SBM Others Increase in share price of Yahoo! Inc. (+15.2) Additional investments: Oak Pacific Interactive (+7.5) RockYou, Inc. (US)(+4.7) Deferred tax assets SBM Others ,748.6 Allowance for doubtful accounts (long-term) SBM Others Deferred charges Others SBH: derivative assets (-19.3) 19

20 Consolidated B/S (4) Current Liabilities Current liabilities SBM Others Accounts payable-trade SBM Others Short-term borrowings SBM Others Current portion of corporate bonds SBM Others Accounts payable-other SBM Others Current portion of lease obligations SBM Others Others SBM Others Liabilities Mar 29 1, Dec 29 1, Variance SB: SOFTBANK SBM: SOFTBANK MOBILE SBB: SOFTBANK BB SBTM: SOFTBANK TELECOM Outline SBB: Mar 9 (38.3) >> Dec 9 (32.9) SBTM: Mar 9 (5.5) >> Dec 9 (2.7) Mainly securitization of installment sales receivables SB stand-alone: Mar 9 (336.) >> Dec 9 (22.5) credit line facility repaid (-13.) SBTM: Mar 9 (2.9) >> Dec 9 (1.) Yahoo Japan: Mar 9 (2.) >> Dec 9 (1.) SB stand-alone: transfer from long-term account of 22 nd, 24 th Unsecured Straight Corporate Bond (+54.4) SBTM: redemption of 1 st Unsecured Straight Corporate Bond (-45.) Additional entrustment for debt assumption of bonds transfer from long-term (+75.) Decrease in commission payable to agents and payables for equipment (-46.3) Transfer from long-term (+77.3), lease fees paid (-66.7) Yahoo Japan income taxes payable etc (+3.3), BBM (+17.6) 2

21 Consolidated B/S (5) Long-term Liabilities Liabilities Mar 29 Dec 29 Variance Outline Long-term liabilities 2, , SBM 1, , Others Corporate bonds SBM Others Long-term debt , , Issue SB stand-alone: 27 th, 28 th, 29 th Unsecured Straight Corporate Bond (+155.) Transfer to current account of 22 nd, 24 th series unsecured bonds (-54.4) SBM 1,35.7 1, SBM loan related Mar 9 (1,184.8) >> Dec 9 (1,88.9) Vodafone subordinated loan Mar 9 (84.5) >> Dec 9 (84.5) Installment sales receivables securitization borrowings Mar 9 (36.2) >> Dec 9 (41.8) Others Deferred tax liabilities SB stand-alone: Mar 9 (5.) >> Dec 9 (72.6) Yahoo Japan: Mar 9 (1.) >> Dec 9 (-) SBM Others Allowance for point mileage SBM Point service for customers Others Lease obligations SBM Newly procured (+45.1), transferred to short-term (-77.3) Others Other SBM Others Additional entrustment for debt assumption of bonds transferred to accounts payableother (-75.) SB: SOFTBANK SBM: SOFTBANK MOBILE 21

22 Consolidated B/S (6) Equity Equity Mar 29 Dec 29 Variance Outline Equity Shareholders equity Common stock Additional paid-in capital Accumulated deficit/retained earnings FY29/Q3 net income (+94.8), dividend (-2.7) Treasury stock Valuation and translation adjustments Unrealized gain on available-for-sale securities Increase in share price of Yahoo! Inc. etc Deferred gain on derivatives under hedge accounting Foreign currency translation adjustments Stock acquisition rights Minority interests BBM: Dec 9 (3.) Note: Issued preferred stock to Vodafone International Holdings B.V. Yahoo Japan: Mar 9 (132.2) >> Dec 9(161.3) BBM: BB Mobile 22

23 [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 <JPY> <Ref> Main exchange rate trend GBP/JPY (TTM) Euro/JPY (TTM) USD/JPY (TTM) Jun 7 Sep Dec Mar 8 Jun Sep Dec Mar 9 Jun Sep Dec 23

24 [Equity] Shareholders Equity 6 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 1.6% Mar 7 Jun Sep Dec Mar 8 Jun Sep Dec Mar 9 Jun Sep Dec *Including cash receipts for new stock subscriptions. 24

25 Accounting Consolidated CF Analysis 25

26 Dec Cash and cash equivalents at the end of the period Repayment of lease obligations Sale and lease back of equipment newly acquired 26 Consolidated Cash Flow Main Breakdown Financing CF Investing CF Operating CF Mar Redemption of bonds Bonds issued Proceeds from longterm debt Proceeds from sale of marketable and investment securities Purchase of marketable and investment securities Purchase of property & equipment & intangibles Income taxes paid Repayment of long-term debt Decrease in short-term borrowings Decrease in payables-trade Decrease in notes & accounts receivable trade (non-installment) Decrease in mobile handset installment receivables Loss on disposal of fixed assets Amortization of goodwill Depreciation & amortization Income before income taxes and minority interests Cash and cash equivalents at the beginning of the period Note: Significant items from the consolidated cash flow statement are shown here.

27 Consolidated Earnings Forecast Operating Income Free Cash Flow 6 +19% % % Not Announced FY8 FY9 FY1 FY8 FY9 FY1 (actual) (forecast) (forecast) (actual) (forecast) Note: Free Cash Flow (FCF) = cash flows from operating activities + cash flows from investing activities 27

28 Scope of Consolidation/Scope of Equity Method Consolidated subsidiaries Newly consolidated subsidiaries Subsidiaries excluded from consolidation Non-consolidated subsidiaries (3=1+2) Non-consolidated subsidiaries under the equity method (1) Entities newly accounted under the equity method Affiliated companies under the equity method Entities newly accounted under the equity method Entities no longer accounted under the equity method Non-consolidated subsidiaries not under the equity method (2) Affiliated companies not under the equity method (4) Number of Companies SOFTBANK MOBILE, SOFTBANK BB, SOFTBANK TELECOM, Yahoo Japan, SOFTBANK TECHNOLOGY, ITmedia, etc. Overture K. K. (due to merger with Yahoo Japan ) Insignificant companies Gung Ho Online Entertainment, MySpace Japan, Alibaba Group Holding Limited, etc. Oak Pacific Interactive RockYou, Inc. (US) Insignificant companies Insignificant companies Name of Core Companies Net loss, interest-bearing debt at non-consolidated subsidiaries and affiliates not accounted for under the equity method Non-consolidated subsidiaries (3) Affiliates not accounted for by the equity method (4) Number of Companies Net Loss (after consideration of voting rights ratio) Interest-bearing Debt (not within the SB group).19-28

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30 Finance Yoshimitsu Goto General Manager Finance SOFTBANK CORP. 3

31 Main Financial Activities of FY29 Apr-Dec (bn JPY) Date Content Amount 29 June Issue 27 th Unsecured Straight Corporate Bond (Fukuoka SoftBank HAWKS Bond) 6. June Securitization of mobile handset installment sales receivables 7.2 July Issue 28 th Unsecured Straight Corporate Bond 3. September Issue 29 th Unsecured Straight Corporate Bond (Fukuoka SoftBank HAWKS Bond) 65. September Renewal of credit line facility September Securitization of mobile handset installment sales receivables 49.9 December Securitization of mobile handset installment sales receivables 6. 31

32 FCF Actual - Forecast bn JPY increase bn JPY (65%) estimated increase FY9/Q1-3 actual JPY 283.5bn FY7 FY8 FY9 (forecast) Note: Free Cash Flow (FCF) = cash flows from operating activities + cash flows from investing activities 32

33 Cash Flow Trend 5 Operating CF Investing CF Financing CF FCF FY7 Q1-3 FY8 Q1-3 FY9 Q1-3 Note: Free Cash Flow (FCF) = cash flows from operating activities + cash flows from investing activities 33

34 EBITDA and EBITDA Margin (by segment) EBITDA growing steadily in each segment. Consolidated EBITDA EBITDA Margin Elimination Other 6% 65 Internet Culture BB Infrastructure Mobile Communications e-commerce Fixed-line Telecommunications % 52% 53% 54% Internet Culture % 3% 2% 1% % 27% 25% FY7/Q1-3 FY8/Q1-3 FY9/Q1-3 FY7/Q1-3 FY8/Q1-3 FY9/Q1-3 Note: EBITDA = Operating income (loss) + depreciation and amortization (including amortization of goodwill), and loss on disposal of fixed assets included in operating expenses 23% 13% 3% 26% 26% 17% 33% 31% Broadband Infrastructure Mobile Communications 29% Consolidated Fixed-line 18% Communications 34

35 EBITDA - CAPEX Steady increase due to expansion of EBITDA. 8 EBITDA CAPEX EBITDA FY9/Q1-3 actual/3x FY9/Q1-3 actual JPY 458.4bn EBITDA - CAPEX EBITDA (planned) FY6 FY7 FY8 FY9 CAPEX (forecast) 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 : CAPEX is on acceptance basis 35

36 EBITDA CAPEX (by main segments) 3 Mobile Communications 3 Broadband Infrastructure FY6 FY7 FY FY9 Q FY6 FY7 FY FY9 Q1-3 Yearly 9 months Yearly 9 months 3 Internet Culture 3 Fixed-line Telecommunications FY6 FY7 FY8 FY9 Q FY6 FY7 FY FY9 Q1-3 Yearly 9 months Yearly 9 months 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 : CAPEX is on acceptance basis. 36

37 Interest-bearing Debt (by procurement method) 3, Securitization of installment sales receivables obligations SBM loan 2, 2, , , , , , , , Vodafone subordinate loan Yahoo Japan borrowings 1, , , ,27.7 1, , , ,88.9 Borrowings from other financial institutions, etc. Bonds & CP 1, Mar 8 Jun Sep Dec Mar Jun Sep Dec Note 1: Lease obligations are not included in interest-bearing debt. Please refer to the next page for details on lease obligations. 2: SBM loan : WBS borrowings balance mainly borrowed by SOFTBANK MOBILE Breakdown of borrowings from other financial institutions, etc. SOFTBANK (bank loan) SOFTBANK (stock lending) 114. Major overseas subsidiaries loans from financial institutions 99.7 Other bank loans 15.4 Total

38 Lease Obligations 3, Finance leases (accounted for as operating lease transactions) * Finance leases (lease obligations) 2, 1, Mar 8 Jun Sep Dec Mar 9 Jun Sep Dec *Finance lease transactions in which the ownership of leased assets was not transferred to lessees and contracted before April 1,

39 Net Interest-bearing Debt 3, 2, 2,36.8 2, ,7.9 2, , , , , Securitization of installment sales receivables obligations 1, 1, , ,84. 1, , , , ,455.8 Excl. securitization of installments Mar 8 Jun Sep Dec Mar 9 Jun Sep Dec Note: Net interest-bearing debt = interest-bearing debt (not including lease obligations) cash position. Cash position = cash and deposits, marketable securities. 39

40 Cash Position Unused portion of credit line facility Cash and deposits, and marketable securities Mar 8 Jun Sep Dec Mar 9 Jun Sep Dec Note: 1. Cash position = cash and deposits, marketable securities. 2. Unused portion of credit line facility = credit line facility size - credit line borrowings. 4

41 Interest-bearing Debt Long/Short and Fixed/Variable Ratio (Dec 9) Interest-bearing Debt Long/Short Ratio Interest-bearing Debt Fixed/Variable Ratio Short-term debt (21%) Long-term debt 1,811.3 (79%) Variable rate procurement (12%) Fixed interest procurement 2,3.6 (88%) Note : Lease obligations are not included in interest-bearing debt. 41

42 Interest-bearing Debt Long/Short and Fixed/Variable Ratio Trend Interest-bearing Debt Long/Short Ratio Interest-bearing Debt Fixed/Variable Ratio Long-term Short-term Fixed Variable 1% % % 8% 6% 6% 4% 1,76.8 1, , , % 1,99.3 2,37.7 2,77.8 2,3.6 2% 2% % % Mar 9 Jun 9 Sep 9 Dec 9 Mar 9 Jun 9 Sep 9 Dec 9 Note : Lease obligations are not included in interest-bearing debt. 42

43 Credit Rating AA /AA3 A+/A A/A2 A /A3 JCR (AA-) S&P(A) Moody s (A3) Mobile Communications credit rating (WBS structured rating (senior portion)) BBB+/Baa1 BBB/Baa2 JCR( +) BBB /Baa3 BB+/Ba1 BB/Ba2 BB /Ba3 Moody s (Ba2) S&P(BB) SOFTBANK rating B+/B1 Acquisition of JAPAN TELECOM Acquisition of Vodafone K.K CY 43

44 CDS and Bond Spread CDS Bond Spread <bp> 2,2 2, 1,8 SOFTBANK CDS (5 years) 26 th Unsecured Straight Corporate Bond (4.4 years remaining) <bp> th Unsecured Straight Corporate Bond (4.4 years remaining) 28 th Unsecured Straight Corporate Bond (2.5 years remaining) 25 th Unsecured Straight Corporate Bond (1.4 years remaining) 22 nd Unsecured Straight Corporate Bond (.6 years remaining) 1,6 1,4 4 1,2 35 1, Apr Jun Aug Oct Dec Feb Apr Jun Aug Oct Dec Feb 1 Jan Mar May Jul Sep Nov Jan FY8 FY9 FY8 CDS: Credit Default Swap Source: CDS data by Bloomberg. Bond spread data is calculated by SOFTBANK based on Japan Securities Dealers Association data. FY9 44

45 Price Trend of Convertible Bonds <JPY> 15 CB Prices Convertible Bond due 213 (Balance as of Dec 29: JPY 5.bn) The end of the exercise period for the put option is February 28, Convertible Bond due 214 (Balance as of Dec 29: JPY 5.bn) 11 Convertible Bond due 215 (already redeemed on March 29) Feb Apr Jun Aug Oct Dec Feb Apr Jun Aug Oct Dec Feb Note: Concerning CB due 213 and 214, under certain conditions, early redemption of these bonds due to the holders or companies request is possible in March 21 and March 211, respectively. The above chart assumes the case where bond holders exercise their put options. Source: Bloomberg. 45

46 Bond Redemption Schedule Sustain sufficient repayment resources. Repayment Capability Unused portion of credit line facility Corporate Bonds Redemption Schedule 8 Cash and cash deposits, and marketable securities SB straight bond SB convertible bond Early redemption is possible due to put options of holders Dec 8 Dec 9 <5.> <5.> Q4 Q1 Q2 Q3 Q4 FY9 FY1 Note 1: Concerning CB due 213 and 214, under certain conditions, early redemption of these bonds due to the holders' or companies request is possible in March 21 and March 211, respectively. The above chart assumes the case where bond holders exercise their put options. 2: Unused portion of credit line facility = credit line facility size - credit line borrowings. 3: JPY 19.bn of SB straight bond was redeemed on January 29,

47 SBM Loan Cumulative Repayment Amount Repayment exceeds plan <times> Mobile Communications leverage ratio 2.7 times (Dec 9) Net interest-bearing debt basis 2.1 times Jun 8 Sep 8 Dec 8 Mar 9 Jun 9 Sep 9 Note 1: Leverage ratio = Interest-bearing debt (Mobile Communications) / EBITDA(Q1-3 actual/3x4)(mobile Communications). 2: Net interest-bearing debt = interest-bearing debt (not including lease obligations) cash position. Cash position = cash and deposits, marketable securities. 3: SBM loan: The acquisition funds for the acquisition of Vodafone K.K. refinanced in November 26 via a whole business securitization program. Dec 9 Jan

48 Outstanding Balance of SBM Loans 1,35 1,342.1 Below JPY 1 trillion 1,3 1,25 1,2 1,15 1,1 1, ,295. 1, , , ,27.7 1, , , ,88.9 Repaid JPY 12.2bn on January 21. 1,5 1, Jun 7 Sep 7 Dec 7 Mar 8 Jun 8 Sep 8 Dec 8 Mar 9 Jun 9 Sep 9 Dec 9 Jan 1 FY7 FY8 * Balance of WBS loan borrowed by SBM FY9 48

49 Securitization of Installment Receivables in Mobile Communications (reported as borrowings) Securitization of Installment Receivables (reported as borrowings) Outstanding balance /Q1 Q2 Q3 Q4 8/Q1 Q2 Q3 Q4 9/Q1 Q2 Q3 1 5 Procurement (individual investors) Procurement (institutional investors) Repaid 49

50 Improve Indexes: (1) Interest-bearing Debt/EBITDA Multiple Expand EBITDA and reduce interest-bearing debt. <times> 8. Interest-bearing Debt/EBITDA Multiple <times> 8. (Ref.) Net Interest-bearing Debt/EBITDA Multiple FY6 FY7 FY8 FY9 Q1-3. FY6 FY7 FY8 FY9 Q1-3 Yearly 9 months Yearly 9 months Note 1: Interest-bearing debt and net interest-bearing debt of FY26 is calculated with retroactive adjustments by adding the cash receipts as collateral relating to marketable security lending transactions. 2: Lease obligations are not included in interest-bearing debt. 3: EBITDA = Operating income (loss) + depreciation and amortization (including amortization of goodwill), and loss on disposal of fixed assets included in operating expenses. 4: EBITDA in FY9 at annualized rate (Q1-3 actual/3x4). 5: Net interest-bearing debt = interest-bearing debt (not including lease obligations) cash position. Cash position = cash and deposits, marketable securities. 5

51 Improve Indexes: (2) Debt/Equity Ratio Ratio improving steadily. <times> Debt Equity Ratio D/E ratio D/E ratio (excl. Mobile Communications business) <times> Net Debt Equity Ratio Net D/E ratio Net D/E ratio (excl. Mobile Communications business) Mar 7 Mar 8 Mar 9 Dec 9. Mar 7 Mar 8 Mar 9 Dec 9 Note 1: D/E ratio = interest-bearing debt/shareholders equity. 2: 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. 3: Lease obligations are not included in interest-bearing debt. 4: Excluding Mobile communications business : Balances of Mobile communications business have been deducted from consolidated interest-bearing debt and net interest-bearing debt balance respectively. 5: Net interest-bearing debt = interest-bearing debt (not including lease obligations) cash position. Cash position = cash and deposits, marketable securities. 51

52 Improve Indexes: (3) Interest Coverage Ratio Maintain stable trend. <times> Interest Coverage Ratio (Quarterly) <times> Interest Coverage Ratio (Yearly) FY8/Q1 Q2 Q3 Q4 FY9/Q1 Q2 Q3. FY6 FY7 FY8 Yearly Note 1: Interest coverage ratio = EBITDA/interest expenses. 2: EBITDA = Operating income (loss) + depreciation and amortization (including amortization of goodwill), and loss on disposal of fixed assets included in operating expenses 3: EBITDA in FY9 at annualized rate (Q1-3 actual/3x4). 4: Interest expense in FY26 include retroactively adjusted stock bailment fees relating to marketable security lending transactions. FY9 Q1-3 9 months 52

53 Improve Indexes: (4) Equity Ratio Equity ratio recovered to double digits. 2, 1,5 Equity Ratio (Ref.) Equity Ratio * (considering unrealized gain) 3% Shareholders' equity 2, 54.5% 1,876.9 Equity ratio 25.5% 2% 1,5 23.5% 1,237.7 Shareholders' equity (considering unrealized gain) Equity ratio (considering unrealized gain) 1, % 18.6% 3% 2% 1, % % 6.6% % % % 1, ,24.3 1% Mar 6 Mar 7 Mar 8 Mar 9 Dec 9 % Mar 6 Mar 7 Mar 8 Mar 9 Dec 9 % * Refer to the page 8 of the supplemental data for calculation basis. 53

54 FY29 Financial Strategies (no change) Towards ZERO net-interest bearing debt Maximize FCF, through maximum operating CF and appropriate investing CF Continued improvement of various financial indexes through steady reduction of debts Improve credit rating as a result of strengthening of balance sheet Conservative financial management according to market Utilize diverse, appropriate procurement methods according to market conditions Secure stable long-term procurement, improve long-term debt ratio Sustain abundant cash position High quality IR activities Approach all layers of investors both in the debt & equity markets Disclose earnings forecast, clarify growth scenario Further expansion of disclosure content 54

55 Corporate Bond Details <mil JPY> Company name Bond Issue date Maturity date Interest rate (%/year) Collateral Mar 9 balance Dec 9 balance Change SOFTBANK CORP. 19 th series Unsecured Straight Bond 25/1/31 21/1/ None 19, 19, - 24 th series Unsecured Straight Bond (3 rd Fukuoka SoftBank HAWKS bond) 27/4/26 21/4/ None 2, 2, - 22 nd series Unsecured Straight Bond 25/9/14 21/9/ None 36,4 34,4-2, 27 th series Unsecured Straight Bond (4 th 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 53,9 53, th series Unsecured Straight Bond 29/7/24 212/7/ None 3, 3, 29 th series Unsecured Straight Bond (5 th Fukuoka SoftBank HAWKS bond) 29/9/18 212/9/ None 65, 65, Convertible Bond due 213 (*1) 23/12/3 213/3/ None 5, 5, - Euro-denominated Senior Notes due /1/12 213/1/ None 51,766 (Eur 388mil) 47,614 (Eur 355mil) Convertible Bond due 214 (*1) 23/12/3 214/3/ None 5, 5, - 26 th series Unsecured Straight Bond 27/6/19 214/6/ None 15, 14,9-1 SOFTBANK TELECOM 1 st series Unsecured Straight Bond 24/12/7 29/12/7 2. None 45, -45, 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 , ,914 13,348-4,151 Note 1: Concerning CB due 213 and 214, under certain conditions, early redemption of these bonds due to the holders' or companies request is possible in March 21 and March 211, respectively. 2: The above table does not include straight bonds issued by SOFTBANK MOBILE, on which an in-substance defeasance was executed. Funds for redemption have been secured by credit enhancement through Mizuho Corporate Bank, Ltd. 3: JPY 19,mil of SOFTBANK 19 th series Unsecured Straight Bond was redeemed on January 29,

56 56

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 a record high. Broadband Infrastructure Fixed-line Telecommunications Mobile Communications (Ref.) consolidated operating income YoY (Apr-Dec) FY8 Q1-3 FY9 Q1-3 Operating income FY8 Q1-3 FY9 Q1-3 EBITDA FY8 Q1-3 FY9 Q1-3 Operating income FY8 Q1-3 FY9 Q1-3 EBITDA FY8 Q1-3 FY9 Q1-3 Operating income FY8 Q1-3 FY9 Q1-3 EBITDA Note: EBITDA =Operating income (loss) + depreciation and amortization (including amortization of goodwill) + loss on disposal of fixed assets included in operating expenses. 58

59 Operation Broadband Infrastructure Business 59

60 Operating Income, EBITDA Maintain trend of revenue increase through cost reductions. <BB> Operating Income EBITDA Q (FY) Q4 Q3 Q2 Q FY6 FY7 FY8 FY9 4 Q3 Q2 Q FY6 FY7 FY8 FY9 Note: EBITDA =Operating income (loss) + depreciation and amortization (including amortization of goodwill) + loss on disposal of fixed assets included in operating expenses. 6

61 Yahoo! BB ADSL Lines and ARPU Number of ADSL lines is decreasing. ARPU on same level. <k lines> 6, 5, 4, 3, 5,16 4,57 Number of Lines 4,94 4,34 Installed lines Charged lines 4,43 4,2 3,91 3,53 <JPY> 5, 4, 3, ARPU 1.Basic charge 2.Modem rental revenue 3.WLAN <BB> 4.BB Phone 5.BB Security 6.Yahoo! ISP 4, (Reference) 2, 2, ADSL (number of Lines) 3,91 1, Yahoo! BB Hikari with FLET'S (ISP) (number of contracts) 11 1, 1 Total 4,2 6/Q1 Q3 7/Q1 Q3 8/Q1 Q3 9/Q1 Q3 [FY] 6/Q1 Q3 7/Q1 Q3 8/Q1 Q3 9/Q1 Q3 [FY] Note 1: ARPU = Average revenue per contract based on user s payment. (The impact of the modem rental business sale is not reflected.) 2: From F7/Q1 part of Yahoo! ISP revenue recorded as basic charge, based on changed contract with Yahoo Japan (no impact on user s charge). 3: ISP (Internet Service Provider). 4: A broadband connection service that combines the Internet connection service Yahoo! BB and the FLET S HIKARI fiber-optic connection provided by NIPPON TELEGRAPH AND TELEPHONE EAST CORPORATION ( NTT East ) and NIPPON TELEGRAPH AND TELEPHONE WEST CORPORATION ( NTT West ). FLET S and FLET S HIKARI are registered trademarks of NTT East and NTT West. 5: Installed lines: number of lines for which connection construction for ADSL line at central office of NTT East or NTT West is complete. Charged lines: number of installed lines excluding customers whose basic monthly charge is free under campaigns or other promotional initiatives. 61

62 CAPEX [acceptance basis] <BB> Decreased by JPY 4.3bn from original plan (announced at 9/Q2 earnings release) 25 CAPEX and Depreciation & Amortization (quarterly trend) CAPEX (yearly trend) 2 CAPEX Depreciation & amortization [FY] /Q1 Q3 8/Q1 Q3 9/Q1 Q FY5 FY6 FY7 FY8 FY9 (Ref.) orig. plan (Changed plan) Q3 Q2 Q1 62

63 Operation Fixed-line Telecommunications 63

64 Operating Income, EBITDA 2 Sustain trend of profit increase through enhancement of corporate lines and efficient management. Operating Income/Loss EBITDA <Fixed> 15 SOFTBANK IDC impact Q3: JPY +.5bn Q2: JPY +.5bn Q1: JPY +.5bn Q1-3(total): JPY +1.6bn Q Q Q3 3.4 Q1 1.2 *1 1.3 Q2 1.2 Q Q2 -.9 Q1 -.1 Q3-2.6 Q Q4 -.6 (FY) -2.9 FY6 FY7 FY8 FY9 FY6 FY7 FY8 FY9 *1: FY6/Q1: including one-off event (reversal of JPY 2.5bn for retirement benefits). 2: EBITDA =Operating income (loss) + depreciation and amortization (including amortization of goodwill) + loss on disposal of fixed assets included in operating expenses. 5 Q

65 Number of Lines and ARPU for OTOKU Line <Fixed> Sustain number of lines and ARPU due to enhancement of corporate lines. <k lines> 1,8 1,6 1,4 Number of Lines Large Corp. SME (SBTP) SME (excl. SBTP) Consumer 1,35 1,54 1,65 1,66 <JPY> 12, 1, ARPU Large Corp. Total 1,2 1, Corporate lines: 1,34 Corporate lines ratio: 81% 8, 6, 4, 2, 6/Q1 Q3 7/Q1 Q3 8/Q1 Q3 9/Q1 Q3 Note 1 : ARPU = Average revenue per contract. 2 : SBTP: SOFTBANK TELECOM PARTNERS. [FY] 6/Q1 Q3 7/Q1 Q3 8/Q1 Q3 9/Q1 Q3 [FY] 65

66 CAPEX [acceptance basis] Increased by JPY 4.6bn from original plan (announced at 9/Q2 earnings release) <Fixed> 4 CAPEX and Depreciation & Amortization (quarterly trend) 15 CAPEX (yearly trend) CAPEX 3 Depreciation & amortization /Q1 Q3 8/Q1 Q3 9/Q1 Q3 [FY] (Changed plan) FY5 FY6 FY7 FY8 FY9 (Ref.) orig. plan Q3 Q2 Q1 66

67 Operation Mobile Communications 67

68 SBM Consolidated Net Sales <Mobile> Both telecom service revenue and handset sales revenue increased YoY. Telecom service revenue 1,4 1,2 SBM Consolidated Net Sales (Yearly Comparison) 1,16.4 Sales of mobile handsets and accessories (YoY) (+1.3%) 1, , 8 Q4 SBM Consolidated Net Sales (Quarterly Comparison) 1,17.1 1, (+8.5%) Telecom service revenue (YoY) , (+13.9%) Q (+1.5%) (+8.5%) Q Q FY8/Q1-3 FY9/Q1-3 FY7 FY8 FY9 SBM: SOFTBANK MOBILE 68

69 Operating Income (SB consolidated, SBM consolidated) <Mobile> Increase in profit by approx. 6% by increase of sales and efficient management led the consolidated results. SB Consolidated SBM Consolidated Mobile Communications Segment 25 (YoY) (Apr-Dec) +8.2 (+59.4%) (YoY) (Apr-Dec) (+62.8%) months Q2 (May-Jun) Q4 Q3 Q FY6 FY7 FY8 FY9 SB: SOFTBANK, SBM: SOFTBANK MOBILE Q Q Q Q1 FY6 FY7 FY8 FY9 69

70 EBITDA (SB consolidated, SBM consolidated) <Mobile> Favorable trend sustained by sales increase and efficient management. SB Consolidated Mobile Communications Segment SBM Consolidated (YoY) (Apr-Dec) (YoY) (Apr-Dec) Q (+29.1%) Q (+29.4%) Q Q Q Q months (May-Jun) Q FY6 FY7 FY8 FY9 Note 1: EBITDA =Operating income (loss) + depreciation and amortization (including amortization of goodwill) + loss on disposal of fixed assets included in operating expenses. 2: SB: SOFTBANK, SBM: SOFTBANK MOBILE Q FY6 FY7 FY8 FY9 7

71 Quarterly Net Additions <Mobile> Continued steady growth in net additions. <k subs> 1, No.1 in net addition share for 11 consecutive quarters* FY9/Q3 net additions 35k <Breakdown> Postpaid +383k Prepaid -33k /Q1 Q3 6/Q1 Q3 7/Q1 Q3 8/Q1 Q3 9/Q1 Q3 [FY] Vodafone Note: Number of subscribers includes communication module service subscribers. Calculated by SOFTBANK based on Telecommunications Carriers Association statistical data. 71

72 Trend of Total Subscribers and 3G Subscribers <Mobile> Number of total subscribers growing steadily. 3G ratio increased to 96.4%. <mil subs> G G Cumulative Subscribers 29/ mil 26/ mil Increase +6.43mil 3G Ratio Jun SepDec Mar Jun SepDec Mar Jun SepDec Mar Jun Sep Dec Mar Jun SepDec / % 26/6 24.4% Increase +72.% Vodafone Note: Number of subscribers includes communication module service subscribers. 72

73 Aspects of 2G Subscribers <Mobile> As of 9/Q3, prepaid represented approx. half of 2G subscribers. 2G ARPU is declining. Telecom service revenue from 2G is 1.7% of the total for 9/Q3, impact is minor. mil subs 2 Subscribers 3G 2G postpaid 2G prepaid JPY 6, ARPU Total 2G bn JPY 3 Telecom Service Revenue 3G 2G % 4, 2 8.5% 1 2, % 1.7% 5/Q3 6/Q3 7/Q3 8/Q3 9/Q3 5/Q3 6/Q3 7/Q3 8/Q3 9/Q3 5/Q3 6/Q3 7/Q3 8/Q3 9/Q3 73

74 Loss on Retirement of Non Current Assets and Impact on Operation <Mobile> Equipment used for 2G mobile phone services Equipment used for 3G mobile phone services Total Amount (JPY bn) Note - Facility removal cost and loss on retirement of telecommunications equipment along with the termination of 2G service. -Equipment used exclusively for 2G mobile phone services is being depreciated using the straight-line method for the period commencing from the acquisition of Vodafone K.K. (currently SBM) to the termination of 2G services in March. - Facility removal cost and loss on retirement of part of telecommunications equipment due to review and optimization of vendors. - Recorded as a special loss on consolidated Statements of Income for Q3 FY29. <Impact on operations for the next fiscal year> Positive impact Positive impact Negative impact Negative impact Decrease in depreciation on equipment used exclusively for 2G and retired assets. Decrease in maintenance cost on 2G equipment and effect of optimization of vendors of 3G equipment. Increase in depreciation on equipment for 1.5GHz and enhancement of 3G network. Increase in maintenance costs on equipment for 1.5GHz and enhancement of 3G network. Positive impact, net on operations is expected. 74

75 Churn Rate & Upgrade Rate <Mobile> Churn rate higher YoY due to end of installment contracts, yet QoQ improved. Upgrade rate decreased slightly YoY, number of upgrades at same level. Churn Rate Upgrade Rate Total 3G postpaid 3.% 3.2% 2.% 1.66% 1.6% 1.21% 1.16% 2.% 2.% 1.%.88%.91%.99% 1.% 1.67% 1.53%.69%.% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3.% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 FY6 FY7 FY8 FY9 FY6 FY7 FY8 FY9 Note: Churn rate and upgrade rate includes communication module service subscribers. 75

76 Churn Rate Details <Mobile> Churn rate largely varies according to type of contract, history of model changes. 4.5% 4.% Churn Rate by Type of Contract (FY9/Q3) (details) 3.94% 4.% 3.5% Churn Rate by Model Change (FY9/Q3) <postpaid 3G> (details) 3.5% 3.% 3.% 2.5% 2.% 2.73% 2.5% 2.% 1.6% 1.5% 1.%.5% 1.16%.99% 1.5% 1.%.5%.99%.49%.% Total Prepaid Postpaid (2G) Postpaid (3G).% Postpaid (3G) All contracts Note: Churn rate and upgrade rate includes communication module service subscribers. New (never changed model) Existing (changed model in the past) 76

77 New Super Bonus Ratio and Installment Sales Receivables Balance <Mobile> Maintain high subscription ratio. Installment balance over peak. 1% 8% 6% New Super Bonus Subscription Ratio 71% Acquisitions installment ratio (*1) Cumulative installment user ratio (*2) 86% 56% (include Super Bonus) 84% 75% 83% 78% 71% 67% Installment Sales Receivables Balance 6 Long-term balance Balance of installment sales receivables securitization (1) (2) (3) (4) 4% 2 3rd th th 6th 7th 8th th 7.2 1th th 6. 2% % 13% Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q nd First securitization Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2,223 FY6 FY7 FY8 FY9 FY6 FY7 FY8 FY9 *1 Acquisitions installment ratio: ratio of New Super Bonus subscribers to postpaid subscribers (new/upgrade). *2 Cumulative installment ratio: ratio of New Super Bonus subscribers to total subscribers (excluding subscribers whose Monthly Discounts ended). 77

78 Cash Flow Impact from Installment Sales Receivables <Mobile> Impact on operating CF in FY9 Q1-3 JPY 95.5bn. Impact on operating CF decreasing. Impact on Operating CF (cumulative) FY7 Q (b) FY8 Q (a) FY9 Q1-3 FY9 Q1-3 FY8 Q1-3 Installment Sales Receivables Balance (beginning of the period) (3) (1) <Reference> SB Consolidated FCF Variance Installment Sales Receivables Balance (end of the period) (4) (2) Increase in Installment Sales Receivables Impact on Operating CF Increase in operating cash flows resulting from decrease in installment sales receivables FY8/Q FY9/Q (a) (b) Variance *1 Please refer to the graph on the previous page for (1), (2), (3), (4) in the above table. *2 The decrease in the accounts receivables of FY9/Q1-3 includes the impact of the decrease in the sale of mobile handset installment sales receivables sold JPY 2.6bn ( Impact on FCF 19.6bn). 78

79 ARPU (telecom service revenue per subscription) Total ARPU in steady recovery, after bottoming in FY8/Q4. QoQ: data ARPU, in growth trend, rose above JPY 2,. <JPY> <Mobile> 6, 5, 4, 3, 5,56 4,23 Data 4,52 3,4 Basic charge + voice 4,9 2,3 4,15 4,2 2,16 2,15 QoQ Comparison Total +5 JPY Basic charge & voice -2 JPY 2, 1, 1,33 1,49 1,79 1,992,6 Data +7 JPY 6/Q1 Q2 Q3 Q4 7/Q1 Q2 Q3 Q4 8/Q1 Q2 Q3 Q4 9/Q1 Q2 Q3 Note: ARPU (telecom service revenue per subscription) = basic charge + monthly charge + voice, data, etc. Monthly Discounts (New Super Bonus Special Discount). [FY] 79

80 ARPU (telecom service revenue per subscription) <Mobile> Turnaround of total ARPU to YoY growth for the first time (increased by JPY 11). YoY: voice ARPU continues to decrease at slower pace. Data increases by JPY 27 (approx. 15%). <JPY> 6,5 5,5 4,5 3,5 2,5 5,56 4,26 4,52 3,71 (-55) Monthly Discounts Basic charge + voice (before Monthly Discounts) Data ARPU (telecom service revenue per subscription) 4,9 4,15 3,37 (-34) (YoY comparison) 3,19 4,2 3,14 (-23) YoY comparison Total +11 1, ,5 1,79 1,99 2,6 1,33 1,49 (+16) (+3) (+27) (-64) -1,7-1,3-1, (-4) (+7) 6/Q1 Q2 Q3 Q4 7/Q1 Q2 Q3 Q4 8/Q1 Q2 Q3 Q4 9/Q1 Q2 Q3 [FY] Note 1: ARPU (telecom service revenue per subscription) = basic charge + monthly charge + voice, data, etc. Monthly Discounts (New Super Bonus Special Discount). 8