Softbank Group Corp. · TSE:9984

Softbank — Q3 FY2013 Earnings Presentation

96 slides from Softbank's earnings presentation, Feb 12, 2014

  1. Slide 1: Earnings Results for the Nine-month Period Ended December 31, 2013

    Earnings Results for the Nine-month Period Ended December 31, 2013 February 12, 2014 SoftBank Corp.

  2. Slide 2: Disclaimer

    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

  3. Slide 3: 20 years ago…

    20 years ago… !2

  4. Slide 4: IPO 1994

    1994 IPO !3

  5. Slide 5: Net sales x in 20 years

    Net Sales Over JPY 6t 100 x in 20 years JPY 60bn Mar. 1994 Mar. 2014 (Forecast) !4

  6. Slide 6: EBIT x in 20 years

    EBIT (Operating Income) Over JPY 1t 300 x in 20 years JPY 3bn Mar. 1994 Mar. 2014 (Forecast) !5

  7. Slide 7: Market Cap x in 20 years

    Market Cap JPY 9t 50 x in 20 years Approx. JPY 200bn at IPO 1994 1998 2014 (CY) (Listed on the First Section (Source) S&P Capital IQ (Feb. 10, 2014) of Tokyo Stock Exchange) !6

  8. Slide 8: Global Market Cap Ranking

    Global Market Cap Ranking Rank Company JPY t 1 Apple 47 2 Google 40 3 Exxon Mobil 40 4 Microsoft 31 5 Berkshire Hathaway 28 6 General Electric 26 7 Johnson & Johnson 26 8 Nestlé 25 9 10 81 Roche Holding Walmart SoftBank 25 24 9 Global No. 81 (Source) S&P Capital IQ (Feb. 10, 2014) !7

  9. Slide 9: Toward Further Growth

    Toward Further Growth !8

  10. Slide 10: Consolidated Earnings Results

    Consolidated Earnings Results !9

  11. Slide 11: Highlights

    Highlights 1. Net sales JPY 4.6t (94% increase) 2. EBIT JPY 924.2bn (46% increase) 3. Net income JPY 488.2bn (58% increase) !10

  12. Slide 12: Net Sales: Record high

    Net Sales 4.6t (JPY t) 1.7t Sprint segment Record high 94% increase 2.9t 2.3t 0 2003 ’04 ’05 ’06 ’07 ’08 ’09 ’10 ’11 ’12 ’13 (FY) Q1-3 Q1-3 Q1-3 Q1-3 Q1-3 Q1-3 Q1-3 Q1-3 Q1-3 Q1-3 Q1-3 Japanese-GAAP IFRSs !11

  13. Slide 13: EBITDA: Record high for 10 consecutive periods

    EBITDA 1.3t (JPY bn) 0.2t Sprint segment 1.1t Record high for 874.1 10 consecutive periods 49% increase 0 2003 ’04 ’05 ’06 ’07 ’08 ’09 ’10 ’11 ’12 ’13 (FY) Q1-3 Q1-3 Q1-3 Q1-3 Q1-3 Q1-3 Q1-3 Q1-3 Q1-3 Q1-3 Q1-3 Japanese-GAAP IFRSs !12

  14. Slide 14: EBIT: Record high for 8 consecutive periods

    EBIT 924.2 (JPY bn) Consolidated EBIT (Operating Income) One-time gains from making 253.9 Record high for GungHo and WILLCOM subsidiaries 728.5 8 consecutive 631.5 periods 46% increase - 58.2 Sprint segment 0 2003 ’04 ’05 ’06 ’07 ’08 ’09 ’10 ’11 ’12 ’13 (FY) Q1-3 Q1-3 Q1-3 Q1-3 Q1-3 Q1-3 Q1-3 Q1-3 Q

  15. Slide 15: Net Income: Record high for 5 consecutive periods

    Net Income (JPY bn) 488.2 (Net income attributable to owners of the parent) Record high for 308.8 5 consecutive periods 58% increase 0 2003 ’04 ’05 ’06 ’07 ’08 ’09 ’10 ’11 ’12 ’13 (FY) Q1-3 Q1-3 Q1-3 Q1-3 Q1-3 Q1-3 Q1-3 Q1-3 Q1-3 Q1-3 Q1-3 Japanese-GAAP IFRSs !14

  16. Slide 16: Summary of Consolidated Earnings Results

    Summary of Consolidated Earnings Results (JPY bn) FY12/Q3 FY13/Q3 Change YoY (Apr. - Dec. 2012 (Apr. - Dec. 2013 Net Sales 2,347.0 4,561.7 2,214.7 194% EBITDA 874.1 1,299.7 425.6 149% EBIT 631.5 924.2 292.7 146% (Operating Income) Net Income 308.8 488.2 179.4 158% (Net income attributable to owners

  17. Slide 17: Toward No.1: Net Sales

    (JPY t) Net Sales 4.6t 3.4t 3.2t KDDI Toward No.1 0 2005 ’06 ’07 ’08 ’09 ’10 ’11 ’12 ’13 (FY) Q1-3 Q1-3 Q1-3 Q1-3 Q1-3 Q1-3 Q1-3 Q1-3 Q1-3 *Created by SoftBank Corp. based on respective companies' publicly available historical information Japanese-GAAP IFRSs !16

  18. Slide 18: Toward No.1: EBIT

    (JPY bn) EBIT 924.2 (Operating Income) 688.7 533.2 KDDI Toward No.1 0 2005 ’06 ’07 ’08 ’09 ’10 ’11 ’12 ’13 (FY) Q1-3 Q1-3 Q1-3 Q1-3 Q1-3 Q1-3 Q1-3 Q1-3 Q1-3 *Created by SoftBank Corp. based on respective companies' publicly available historical information Japanese-GAAP IFRSs !17

  19. Slide 19: Toward No.1: Net Income

    (JPY bn) Net Income 488.2 430.2 268.7 KDDI Toward No.1 0 2005 ’06 ’07 ’08 ’09 ’10 ’11 ’12 ’13 (FY) Q1-3 Q1-3 Q1-3 Q1-3 Q1-3 Q1-3 Q1-3 Q1-3 Q1-3 *Created by SoftBank Corp. based on respective companies' publicly available historical information Japanese-GAAP IFRSs !18

  20. Slide 20: No.1 in all core KPIs

    FY2013 Q1-3 Consolidated Earnings Results Rank Company Net Sales EBIT Net Income (Operating Income) 1 JPY 4.6t JPY 924.2bn JPY 488.2bn 2 JPY 3.4t JPY 688.7bn JPY 430.2bn 3 JPY 3.2t JPY 533.2bn JPY 268.7bn No.1 in all core KPIs *Created by SoftBank Corp. based on respective companies' publicly availa

  21. Slide 21: Cash Flow

    Cash Flow FY12/Q3 FY13/Q3 (JPY bn) (Apr. - Dec. 2012 (Apr. - Dec. 2013 Operating cash flow 521.3 497.7 Free cash flow - 246.3 - 1,878.8 Decrease from acquisition of control over subsidiaries - 2.0 - 1,568.6 (Sprint, GungHo, Supercell, etc.) Proceeds from settlement of foreign incl. currency forward

  22. Slide 22: Net Interest-bearing Debt/EBITDA Multiple

    Net Interest-bearing Debt/ EBITDA Multiple (times) 7 6.2x (Post Vodafone K.K. acquisition) Promptly returning 6 5 4 to lower level 3.5x 3 3.0x (Excluding Sprint segment) 2 1 0 At Peak ’07 ’08 ’09 ’10 ’11 ’12 ’13 (At the end of Dec. EBITDA: actual EBITDA of Q1-Q3 of each year / 3 x 4 each year) *EBIT

  23. Slide 23: Domestic Business

    Domestic Business !22

  24. Slide 24: SoftBank facing crisis?

    “DOCOMO will launch iPhone” SoftBank facing crisis? (Source) Morning edition of Nihon Keizai Shimbun, Sept. 6, 2013 !23

  25. Slide 25: Pre-launch survey: which operator for new iPhone

    (Pre-launch survey) Which operator do you want to buy a new iPhone from? 23% 50% 27% (Source) Publicly released materials from NEO MARKETING INC. (Sept. 18, 2013) Surveyed total 4,500 users (1,500 from each) age 15 and older in Japan from Sept. 13 to Sept. 17, 2013 !24

  26. Slide 26: iPhone 5s and 5c Sales Share

    iPhone 5s and 5c Sales Share 28% 40% 32% (Source) Created by SoftBank Corp. based on BCN Ranking Cumulative sales from the launch of iPhone 5s and iPhone 5c to Feb. 7, 2014 !25

  27. Slide 27: Annual Net Additions Ranking

    Annual Net Additions Ranking Rank 2008 2009 2010 2011 2012 2013 1 2 3 No.1 for 6 consecutive years *Created by SoftBank Corp. based on respective companies' publicly available historical information !26

  28. Slide 28: Annual Net Additions 2013

    Annual Net Additions 2013 4.1mil EMOBILE WILLCOM No.1 2.8mil 3.44mil net additions 1.19mil *Created by SoftBank Corp. based on respective companies' publicly available historical information !27

  29. Slide 29: Subscribers

    Subscribers 44.66mil 39.62mil *Created by SoftBank Corp. based on respective companies' publicly available historical information Subscribers for SoftBank Group include WILLCOM and EMOBILE 2006 '07 '08 '09 '10 '11 '12 (At the end of ’13 Dec. each year) !28

  30. Slide 30: Subscribers: Over 100mil in Japan & US

    Subscribers Over 100mil Over 100mil in Japan & US 62.18mil 39.62mil *Created by SoftBank Corp. based on respective companies' publicly available historical information Subscribers for SoftBank Group include WILLCOM, EMOBILE and Sprint Sprint subscribers: ”Total End of Period Subscribers” 2006 '07 '0

  31. Slide 31: ARPU: Steady trend

    (JPY) ARPU JPY 5,900 6,000 JPY 5,890 5,500 Steady trend 5,000 JPY 4,510 JPY 4,430 4,500 JPY 4,490 JPY 4,480 4,000 *Excluding communication modules. Created by SoftBank Corp. based on respective companies' publicly available historical information 3,500 *Total voice ARPU and data ARPU for NTT DOCOMO’

  32. Slide 32: Mobile Service Revenue

    Mobile Service Revenue (JPY bn) 1,540.2 1,174.0 Steady growth 31% increase * Including impact of JPY 284.9bn from newly consolidated subsidiaries from FY2013 (GungHo, eAccess, WILLCOM, Supercell) 2008 ’09 ’10 ’11 ’12 ’13 (FY) * FY2008 - 2011: Telecom service revenue of SoftBank Mobile Q1-3 Q1-3 Q1-3

  33. Slide 33: Mobile Service Revenue Growth Rate

    Mobile Service Revenue Growth Rate SoftBank +31% China Mobile +14% Verizon +8% AT&T +4% Global NTT DOCOMO - 4% No.1 Companies with market cap of more than JPY 3t as of Feb. 10, 2014 *Created by SoftBank Corp. based on respective companies' publicly available information, YTD FY2013 0% Consolidated r

  34. Slide 34: Mobile EBITDA Margin

    Mobile EBITDA Margin 55% 51% 45% Significant 35% improvement 35% 27% 25% 2003 ’04 ’05 ’06 ’07 ’08 ’09 ’10 ’11 ’12 ’13 (FY) *FY2006 - 2011: Mobile Communications business EBITDA / Telecom service Q1-3 Q1-3 Q1-3 Q1-3 Q1-3 Q1-3 Q1-3 Q1-3 Q1-3 Q1-3 Q1-3 revenue of SoftBank Mobile FY2012 - 2013: Mobile C

  35. Slide 35: Mobile EBITDA Margin: Global No.1

    Mobile EBITDA Margin SoftBank 51% Verizon 50% NTT DOCOMO 46% AT&T 41% China Mobile 34% 40% Global No.1 Bharti Airtel T-Mobile 27% *Created by SoftBank Corp. based on respective companies’ publicly available information. YTD 2013 15% Mobile EBITDA Margin = Mobile EBITDA / mobile service revenue Conso

  36. Slide 36: Mobile EBIT

    Mobile EBIT (Operating Income) 514.6 (JPY bn) 9x after Vodafone K.K. 419.3 acquisition 23% increase YoY * Including impact of JPY 56.0bn from newly 57.2 consolidated subsidiaries from FY2013 (GungHo, eAccess, WILLCOM, Supercell) 0 2003 ’04 ’05 ’06 ’07 ’08 ’09 ’10 ’11 ’12 ’13 (FY) * FY2006 - 2011: Op

  37. Slide 37: Mobile EBIT Growth Rate

    Mobile EBIT Growth Rate SoftBank +23% Verizon +19% AT&T +8% NTT DOCOMO - 2% Global China Mobile - 3% No.1 *Companies with market cap more than JPY 3t as of Feb. 10, 2014 0% Created by SoftBank Corp. based on respective companies' publicly available information, YTD FY2013 Consolidated results for Ch

  38. Slide 38: Overcame the purported crisis

    Annual Net Additions (2013) Mobile EBIT (JPY bn) (Operating Income) 514.6 4.1mil 2.8mil 1.19mil ’03 ’04 ’05 ’06 ’07 ’08 ’09 ’10 ’11 ’12 ’13 (FY) Q1-3 Q1-3 Q1-3 Q1-3 Q1-3 Q1-3 Q1-3 Q1-3 Q1-3 Q1-3 Q1-3 Overcame the purported crisis !37

  39. Slide 39: Android Handset Sales Share

    No.1 Android Handset Sales Share (New Additions) 70% on Android 47% 35% 35% 18% 0% (Source) Third-party report based on sales data from major electronics retail stores nationwide Jan. 2013 Jan. 2014 Share of the total units of newly sold Android handsets by NTT DOCOMO, au, SoftBank, EMOBILE, and WIL

  40. Slide 40: Broadband Subscribers (Japan)

    (mil) Broadband Subscribers (Japan) 160 Mobile dominates BWA 120 broadband LTE Mobile 80 40 CATV ADSL FTTH Fixed-line (Source) Created by SoftBank Corp. based on a report issued by MM Research Institute (Nov. 27, 2013) 0 (at the end of 2011 ’12 ’13 ’14 ’15 ’16 ’17 ’18 Mar. each year) (Forecast) !39

  41. Slide 41: New Flat-rate Plan

    New Flat-rate Plan S Pack M Pack L Pack calls within 3 min/ calls within 5 min/ Domestic voice up to 50 times/month up to 1,000 times/month Data 2GB 7GB 15GB Basic monthly JPY 5,980 JPY 6,980 JPY 9,980 charge Revolutionary price plan for the VoLTE era *Dedicated monthly charge (JPY 980/month *with t

  42. Slide 42: Further Development of Corporate Market

    Further Development of Corporate Market !41

  43. Slide 43: iPhone Corporate Customers

    Over 210k iPhone Corporate Customers companies Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2008 2009 2010 2011 2012 2013 (FY) !42

  44. Slide 44: iPad Corporate Customers

    Over 100k iPad Corporate Customers companies Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2010 2011 2012 2013 (FY) *Customers with Wi-Fi + cellular model !43

  45. Slide 45: Google Apps for Business

    Google Apps for Business Cumulative Number of IDs Over 800k IDs Global No.1 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 *Global No.1: based on actual sales of Google Apps for Business 2011 2012 2013 (FY) from Jan. 2012 to Dec. 2012 !44

  46. Slide 46: Super O2O Solution “ULTRA”

    * (Super O2O Solution “ULTRA”) *Online to Offline !45

  47. Slide 47: Promote store visits via smartphones

    (Super O2O Solution “ULTRA”) Web Coupons Physical Advertisement Stores Promote store visits via smartphones !46

  48. Slide 48: Rapid deployment

    = Rapid MILES ES deployment Asahi SUNTORY /EON W] uonna & ® @ aisuka Kao) [af he dain O Gl DaiwaHouse PASM soy €B/Venicon = VFATITG. DR = Cp tur mee Ww a-I9 Mondeléz E: 44 co) Chg ¥ Gullivéry International © 32h AFIT APiTA vrs ©) QALIB JAPAN QNISSEl ARR SARAYA QBADQP 47

  49. Slide 49: Number of Registrations via ULTRA

    Number of Registrations via Super O2O Solution “ULTRA” Over 70k in 2 weeks Campaign 2 weeks launched later !48

  50. Slide 50: Promotion Cost per Customer

    Promotion Cost per Customer 30 % decrease in promotion cost Other online Super O2O measures Solution “ULTRA” !49

  51. Slide 51: Case Study: Aeon

    Case Study: Aeon Super O2O Solution “Ultra” Store Coupon Aeon Wi-Fi Digital Signage WAON App Totte! info Create new shopping experience with smartphones !50

  52. Slide 52: Network

    Network !51

  53. Slide 53: Smartphone Call Connectivity Rate

    Smartphone Call Connectivity Rate 99% 99.1% 98.4 No.1 call connectivity 98% 97.8 97% *Nationwide survey by Ipsos K.K. Call connection rate of smartphones Actual connection rate on calls made to 16,900 smartphone users (SoftBank: 6,500 users, NTT DOCOMO: 5,000 users, au: 5,400 users) July 24, 2012 Fe

  54. Slide 54: Smartphone Data Connectivity Rate

    Smartphone Data Connectivity Rate No.1 99% 98.5% data connectivity 97% 97.0% 96.8% 95% *Statistics analyzed by Agoop Corp. Platinum band-compatible smartphone data connection: total 120,000 platinum band-compatible smartphones (40,000 for each operator) were randomly selected for analysis. In analys

  55. Slide 55: Data Connectivity Rate by Landmarks

    Data Connectivity Rate by Landmarks Stations Universities Shopping Malls 100% 100% 100% 98.9% 98.2% 98.8% 98% 98.0% 97.4% 98% 97.8% 97% 96.8% 95.9% 96% 97.1% 96% 94% 94% 94% Jan. 13, 2013 Feb. 9, 2014 Jan. 13, 2013 Feb. 9, 2014 Jan. 13, 2013 Feb. 9, 2014 Department Stores Electronics Retail Stores C

  56. Slide 56: Toward No.1 in connectivity

    Data Connectivity Rate by Landmarks (on weekends Golf Courses Beaches Ski Resorts and holidays) 99% 100% 99% 97.3% 98.3% 96.0% 96% 96.1% 97.6% 94.6% 96.9% 93.9 95.4% 95% 92% 93% Mar. 10, 2013 Feb. 9, 2014 Jan. 13, 2013 Feb. 9, 2014 Dec. 1, 2013 Feb. 9, 2014 Expressway rest area Roadside Stations 100

  57. Slide 57: Consolidated CAPEX

    Consolidated CAPEX (Japan) 779.4 CAPEX ahead (JPY bn) 750.0 eAccess WCP 110.6 WILLCOM 500.7 668.8 550.0 of schedule 450.0 407.4 *FY2012 excludes FUKUOKA YAHUOKU DOME related CAPEX *Excluding rental handsets for corporate customers acquired by SoftBank Telecom 2010 ’11 ’12 ’13 ’14 ’15 (FY) *Excluding

  58. Slide 58: Internet Business

    Internet Business !57

  59. Slide 59: Yahoo Japan EBIT

    Yahoo Japan EBIT (JPY bn) (Operating Income) 147.1 Record profit 135.4 9% increase 2002 ’03 ’04 ’05 ’06 ’07 ’08 ’09 ’10 ’11 ’12 ’13 (FY) *Yahoo Japan Corporation’s operating income Japanese-GAAP Q1-3 Q1-3 Q1-3 Q1-3 Q1-3 Q1-3 Q1-3 Q1-3 Q1-3 Q1-3 Q1-3 Q1-3 !58

  60. Slide 60: Number of Stores

    Number of Stores 110k (Yahoo! Shopping) (at the end of Dec. 2013) 3x more than Rakuten’s 40k (Rakuten) 20k (Yahoo! Shopping) (as of “e-Commerce Revolution” announcement) (Source) Created by SoftBank Corp. based on respective companies' publicly available historical information (at the end of Sept. e

  61. Slide 61: Transaction Volume Growth Rate

    Transaction Volume Growth Rate + 10% 6% + %5 10% (Yahoo! Shopping) (Yahuoku!) 8% 4% 6% 2% 4% 0% 2% -2% 0% Jan. 2013 Dec. 2013 2012/Q3 ′13/Q3 Increasing transaction volume *Transaction volume growth rate: monthly base for Yahoo! Shopping, quarterly base for Yahuoku! !60

  62. Slide 62: Online Shopping Market

    Online Shopping Market 58t Becoming the (JPY t) JPY world’s largest market JPY 30t JPY 26t JPY 20t (Source) China: publicly released materials from iResearch (Jan. 25, 2013) RMB 1.00 = JPY 16.1 US: publicly released materials from comScore (Nov. 8, 2013) USD 1.00 = JPY 100 Forecast for US from 2013

  63. Slide 63: Transaction Volume / Day

    Transaction Volume / Day (JPY bn) (on the busiest day in a year for online shopping) (Singles’ Day) 600 JPY 560bn 400 3x larger than US (Cyber Monday) JPY 170bn 200 (Source) Created by SoftBank Corp. based on publicly released materials from Comscore, iResearch, Alibaba Group USD 1.00 = JPY 100 RMB

  64. Slide 64: Alibaba Net Income

    Net Income JPY 216.7bn (After Tax) 9x YoY growth JPY 24.8bn (Source) Created by SoftBank Corp. based on disclosed material by Yahoo! Inc. 2008 ’09 ’10 ’11 ’12 ’13 (FY) USD 1.00 = JPY 100 Jan. - Sept. Jan. - Sept. Jan. - Sept. Jan. - Sept. Jan. - Sept. Jan. - Sept. Net income attributable to Alibaba

  65. Slide 65: Alibaba Net Income vs Amazon

    250 Net Income (JPY bn) (After Tax) JPY 216.7bn 200 150 Outpaced 100 Amazon by far 50 JPY 3.4bn (market cap: JPY 17t) 0 (Source) Created by SoftBank Corp. based on disclosed material by Yahoo! Inc. -50 USD1.00 = JPY 100 2008 ’09 ’10 ’11 ’12 ’13 Net income attributable to Alibaba Group Amazon.com: cr

  66. Slide 66: Puzzle & Dragons App Downloads

    Puzzle & Dragons Over 24mil App Downloads (Japan) Continued growth (Hit 3mil mark overseas) Apr. July Oct. Jan. Apr. July Oct. Jan. 2012 2013 2014 !65

  67. Slide 67: GungHo EBIT

    GungHo EBIT (Operating Income) JPY 91.2bn EBIT (Operating income) 10x YoY JPY 9.3bn * GungHo Online Entertainment, Inc.’s operating income Japanese-GAAP 2007 ’08 ’09 ’10 ’11 ’12 ’13 (FY) !66

  68. Slide 68: Google Play Global Revenue Ranking by publisher

    Apps on Google Play: Global Revenue Ranking (by publisher) Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec. 1 2 King.com 3 King.com 4 King.com King.com Global No.1 for 11 months straight (Source) Created by SoftBank Corp. based on App Annie Index: Games “Top Publisher by Monthly Game Revenue”

  69. Slide 69: App Store Global Revenue Ranking by publisher

    Apps on App Store: Global Revenue Ranking (by publisher) Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec. 1 2 King.com King.com King.com King.com King.com King.com 3 Electronic Arts Electronic Arts King.com King.com King.com 4 King.com King.com Electronic Arts Electronic Arts Electronic Arts E

  70. Slide 70: Top Grossing Games on Google Play

    Top Grossing Games on Google Play Global Ranking Oct. Nov. Dec. 1 Puzzle & Dragons Puzzle & Dragons Puzzle & Dragons 2 Candy Crush Saga Candy Crush Saga Candy Crush Saga 3 for Kakao for Kakao Clash of Clans 4 for Kakao Clash of Clans for Kakao 9 Clash of Clans (Launched on Oct. 7 Steady ascent (Sour

  71. Slide 71: Wandoujia: largest shareholder

    (Wandoujia) Leading mobile content search engine in China Largest shareholder !70

  72. Slide 72: Smartphone Share in China by OS

    Smartphone Share in China by OS (2013) Android dominates Others iOS smartphones in China Android 88% (Source) Created by SoftBank Corp. based on report by IDC (Sept. 25, 2013) “China Quarterly Mobile Phone Tracker, 2Q 2013” !71

  73. Slide 73: App Distribution Channel

    App Distribution Channel (Android) More than 70% operated by Others 21% independent channels Google Play 6% Independent 73% (Source) umeng Analytics Platform “UMENG Insight Report 2013 First Half Overview” (Sept. 2013) !72

  74. Slide 74: Installation Penetration

    Installation Penetration Increasing (penetration rate in newly shipped Android phones) popularity over 50% (Source) Report by Wandoujia (Jan. 13, 2014) Installation penetration to daily Android phone shipments in China !73

  75. Slide 75: User Base

    User Base Over 300mil Rapid growth Apr. 2012 Jan. 2014 !74

  76. Slide 76: !75

    !75

  77. Slide 77: Sprint Service Revenue

    Service Revenue (Sprint Platform) USD 28.6bn USD 27.1bn Steady growth 6% increase * Combined consolidated U.S. GAAP results presented to be consistent 2009 ’10 ’11 ’12 ’13 (FY) with Sprint’s public disclosure and presentation of FY13 Q4 results !76

  78. Slide 78: Consolidated Adjusted EBITDA Margin

    Consolidated Adjusted EBITDA Margin Turned 35% around 28% 21% 16.9% 14% 14.9% 7% 0% 2006 ’07 ’08 ’09 ’10 ’11 ’12 ’13 (FY) * Combined consolidated U.S. GAAP results presented to be consistent with Sprint’s public disclosure and presentation of FY13 Q4 results !77

  79. Slide 79: Consolidated Adjusted EBITDA

    (USD bn) Consolidated Adjusted EBITDA Steady growth 13% increase USD 5.4bn USD 4.8bn 2006 ’07 ’08 ’09 ’10 ’11 ’12 ’13 (FY) * Combined consolidated U.S. GAAP results presented to be consistent with Sprint’s public disclosure and presentation of FY13 Q4 results !78

  80. Slide 80: Accelerating turnaround

    (USD bn) Consolidated Adjusted EBITDA Accelerating turnaround USD 6.5 - 6.7bn USD 5.4bn 2006 ’07 ’08 ’09 ’10 ’11 ’12 ’13 ’14 (FY) * Combined consolidated U.S. GAAP results presented to be consistent (Forecast) with Sprint’s public disclosure and presentation of FY13 Q4 results !79

  81. Slide 81: Consolidated CAPEX

    Consolidated CAPEX (USD bn) Approx. USD 8.0bn 7.5bn Continue network USD investments 2006 ’07 ’08 ’09 ’10 ’11 ’12 ’13 ’14 (FY) * Combined consolidated U.S. GAAP results presented to be consistent (Forecast) with Sprint’s public disclosure and presentation of FY13 Q4 results !80

  82. Slide 82: Voice Block Rate

    Voice Block Rate Improved by 41% Pre-Network Vision Network Vision (Source) Sprint’s public disclosure and presentation of FY13 Q4 results. Reflects actual performance for markets with beyond 70% of voice/3G network modernization completed *Voice block rate = the number of attempted calls which were

  83. Slide 83: Speed Performance

    Speed Performance 13x Legacy 3G Network Vision (Source) Sprint’s public disclosure and presentation of FY13 Q4 results (4G LTE) !82

  84. Slide 84: Marcelo Claure Appointed to Sprint’s Board of Directors

    Marcelo Claure Founder & CEO Appointed to Sprint’s Board of Directors !83

  85. Slide 85: Completed Acquisition of Brightstar Corp.

    Completed Acquisition of Brightstar Corp. (Jan. 30, 2014) 70% (initially 57%) Strengthen economies of scale *Ownership after exercising the warrant (over the five-year period) *See SoftBank Corp.’s press release dated Jan. 30, 2014 for more details !84

  86. Slide 86: Forecast

    Forecast !85

  87. Slide 87: FY2013 Consolidated Earnings Forecast

    FY2013 Consolidated Earnings Forecast Net sales over JPY 6t EBITDA over JPY 1.5t EBIT over JPY 1t (Operating income) (including one-time gains of JPY 253.9bn) !86

  88. Slide 88: FY2014 Consolidated Earnings Forecast

    FY2014 Consolidated Earnings Forecast Net sales JPY 7t EBITDA JPY 2t EBIT JPY 1t (Operating income) (excluding one-time gains) !87

  89. Slide 89: Net Sales: Double in 2 years

    Net Sales JPY 7t Over JPY 6t Double JPY 3.2t in 2 years 0 2003 ’04 ’05 ’06 ’07 ’08 ’09 ’10 ’11 ’12 ’13 ’14 (FY) (Forecast) (Forecast) Japanese-GAAP IFRSs !88

  90. Slide 90: EBIT: FY2014 JPY 1t

    EBIT Over JPY 1t (Operating Income) FY2014 JPY 1t (excluding one-time gains) 0 2003 ’04 ’05 ’06 ’07 ’08 ’09 ’10 ’11 ’12 ’13 (FY) (Forecast) * FY2013 forecast includes one-time gains of JPY 253.9bn Japanese-GAAP IFRSs !89

  91. Slide 91: EBITDA: Double in 2 years

    EBITDA JPY 2t Over JPY 1.5t Double JPY 1.1t in 2 years 0 2003 ’04 ’05 ’06 ’07 ’08 ’09 ’10 ’11 ’12 ’13 ’14 (Forecast)(Forecast) Japanese-GAAP IFRSs !90

  92. Slide 92: Global EBITDA Ranking

    Global EBITDA Ranking Rank Company JPY t 1 Exxon Mobil 8.2 2 PetroChina 6.6 3 Apple 6.4 4 Royal Dutch Shell 6.3 5 6 Samsung Gazprom 5.8 5.6 Projected 7 Chevron 5.5 global 54 SoftBank (Source) S&P Capital IQ (Feb. 10, 2014) 2 FY14 EBITDA: created by SoftBank Corp. based on analysts’ consensus: SoftBa

  93. Slide 93: Global EBITDA and Market Cap Ranking

    Global EBITDA Ranking Global Market Cap Ranking Rank Company JPY t Rank Company JPY t 1 Exxon Mobil 8.2 1 Apple 47 2 PetroChina 6.6 2 Google 40 3 Apple 6.4 3 Exxon Mobil 40 4 Royal Dutch Shell 6.3 4 Microsoft 31 5 Samsung 5.8 5 Berkshire Hathaway 28 6 Gazprom 5.6 6 General Electric 26 7 Chevron 5.5

  94. Slide 94: Summary

    Summary 1. Japan: steady growth 2. US: accelerated turnaround On track to meet the forecast !93

  95. Slide 95: Copyright (C) 2014 SoftBank Corp.

    Copyright (C) 2014 SoftBank Corp., All rights reserved. !94

  96. Slide 96: Adoption of IFRSs and definition of terms

    1. Adoption of IFRSs SoftBank Corp. has adopted the International Financial Reporting Standards (IFRSs) from the three-month period ended June 30, 2013 (transition date: April 1, 2012). The financial data for the three-month period ended June 30, 2012 (“YoY”) and the fiscal year ended March 31, 2013

SoftBank — Q3 FY2013 Earnings Presentation on 6ix