Slide 1: Earnings Results for the Fiscal Year Ended March 31, 2015
Earnings Results for the Fiscal Year Ended March 31, 2015 May 11, 2015 SoftBank Corp.
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 t
Slide 3: Consolidated Results of Operations
Consolidated Results of Operations 2
Slide 4: Net Sales: 30% increase
Net Sales (JPY) 8.7t YoY 6.7t 30% increase 2003 ’04 ’05 ’06 ’07 ’08 ’09 ’10 ’11 ’12 ’13 ’14 (FY) Japanese-GAAP IFRSs 3
Slide 5: EBITDA: 20% increase
EBITDA (JPY) 2.1t 1.8t YoY 20% increase 2003 ’04 ’05 ’06 ’07 ’08 ’09 ’10 ’11 ’12 ’13 ’14 (FY) Japanese-GAAP IFRSs 4
Slide 6: EBIT (Operating income): 9% decrease
EBIT (Operating income) (JPY) 1,077bn 982.7bn YoY Temporary gains from 253.9bn consolidation of GungHo, WILLCOM, etc. 9% decrease 2003 ’04 ’05 ’06 ’07 ’08 ’09 ’10 ’11 ’12 ’13 ’14 (FY) Japanese-GAAP IFRSs 5
Slide 7: EBIT excluding temporary gains: 19% increase
EBIT (Operating income) (JPY) 1,077bn 982.7bn Temporary gains from 253.9bn consolidation of GungHo, WILLCOM, etc. 823.1bn 19% increase Excluding temporary gains 2003 ’04 ’05 ’06 ’07 ’08 ’09 ’10 ’11 ’12 ’13 ’14 (FY) Japanese-GAAP IFRSs 6
Slide 8: Net Income: 29% increase
Net Income (Net income attributable to owners of the parent) 668.4bn (JPY) YoY 29% increase 520.3bn *Includes JPY 405.8bn, dilution gain from changes in equity interest related to Alibaba in FY14. 2003 ’04 ’05 ’06 ’07 ’08 ’09 ’10 ’11 ’12 ’13 ’14 (FY) Japanese-GAAP IFRSs 7
Slide 9: Dividend per Share
Dividend per Share FY2013 FY2014 Interim dividend JPY 20 JPY 20 Year-end dividend JPY 20 JPY 20 (Plan) Annual dividend JPY 40 JPY 40 (Plan) No change in dividend policy 8
Slide 10: Telecom Internet
Telecom Internet 9
Slide 11: Telecom Internet
Telecom Internet 10
Slide 12: Mobile EBIT: 9x in 9 years
Mobile EBIT (Mobile operating income) 695.3bn (JPY) 605.8bn 9x in 9 years 76.3bn 2003 ’04 ’05 ’06 ’07 ’08 ’09 ’10 ’11 ’12 ’13 ’14 (FY) Japanese-GAAP IFRSs *FY2006-2011: operating income of Mobile Communications business FY2012-2014: segment income of Mobile Communications business 11
Slide 13: Smartphone Gross Adds
Smartphone Gross Adds Up 39% YoY Steady increase 2012 ’13 ’14 (FY) 12
Slide 14: SoftBank SELECTION Business Sales
SoftBank SELECTION Business Sales (JPY) 28.1bn 7x in 5 years 3.9bn 2009 ’10 ’11 ’12 ’13 ’14 (FY) Source) SoftBank C&S *Domestic sales of mobile accessories 13
Slide 15: Smartphone Data Connectivity (nationwide)
Smartphone Data Connectivity (nationwide) SoftBank 98.9% Maintain 99% 98% NTT DOCOMO 98.1% high level au 97.4% 97% 96% 95% *Statistics analyzed by Agoop Corp. Platinum band-compatible smartphone data Jan. 13, 2013 May 3, 2015 connection: total 120,000 platinum band-compatible smartphone (40,000 for
Slide 16: Smartphone Communication Speed (nationwide)
Smartphone Communication Speed (nationwide) (Mbps) 20 22Mbps SoftBank Maintain 18Mbps NTT DOCOMO high level 16Mbps au 13Mbps 12Mbps 10 10Mbps Source) Agoop “Analysis of Data Communication Speed of Smartphones” Apr. - June July - Sept. Oct. - Dec. Jan. - Mar. Data collected from Apr. 1, 2014 to Mar.
Slide 17: Ken Miyauchi, President & CEO
Ken Miyauchi President & CEO New SoftBank Corp. Driving smart management & structural reform *Former SoftBank Mobile Corp. corporate name change subject to the approval of the AGM to be held on June 19, 2015. 16
Slide 18: New SoftBank's Destination
New SoftBank’s Destination Combine Strengthen growth strategy + Efficient management 17
Slide 19: CAPEX/EBITDA: Generating FCF
CAPEX/EBITDA (domestic telecom business only) (JPY) 1,065.9bn EBITDA 992.3bn Generating 889.3bn 790.4bn 726.4bn 712.5bn FCF 631.6bn 535.5bn 474.1bn 392.6bn 390.0bn 390.0bn CAPEX 2010 ’11 ’12 ’13 ’14 ’15 ’16 (FY) *Japanese-GAAP: CAPEX spent by SoftBank Mobile Corp., SoftBank Telecom Corp. and (estima
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Slide 21: Net Additions (postpaid)
Net Additions (postpaid) Marcelo’s +211k appointment Turnaround +30k 2013 2014 2015 Oct. - Dec. Jan. - Mar. Apr. - June July - Sept. Oct. - Dec. Jan. - Mar. *Sprint Platform 20
Slide 22: Churn (postpaid)
Churn (postpaid) (%) Significantly Marcelo’s appointment 2.3% improved 1.84% 1.0% 2013 2014 2015 Oct. - Dec. Jan. - Mar. Apr. - June July - Sept. Oct. - Dec. Jan. - Mar. *Sprint Platform 21
Slide 23: Network Quality
Network Quality 100 93.9 91.7 Competitive level 86.6 84.0 75 50 25 Verizon AT&T Sprint T-Mobile *Overall Performance rankings based on the RootMetrics® U.S. National RootScore® Report: 2H 2014. Performance rankings of 4 national mobile networks rely on scores calculated from random samples. Your exp
Slide 24: Telecom Internet
Telecom Internet 23
Slide 25: Gross Merchandise Volume
60t Gross Merchandise Volume (JPY ) 50t 51t (Global) 47t 40t 35t (US) Rapid growth 30t 20t 10t (Source) Created by SoftBank Corp. based on publicly available historical information published by Alibaba Group Holding Limited. Alibaba Apr. ’11 - Mar. ’12 Apr. ’12 - Mar. ’13 Apr. ’13 - Mar. ’14 Apr. ’1
Slide 26: Non-GAAP Net Income (after tax)
Non-GAAP Net Income (after tax) (Excluding the losses related to share based compensation expenses, amortization of intangible assets etc) 676.7bn Steady (JPY) 546.9bn increase (Source) Created by SoftBank Corp. based on publicly available historical information published by Alibaba Group Holding Li
Slide 27: Net Income: Steady growth
Net Income 133.0bn (JPY) Steady growth 1997 ’98 ’99 ’00 ’01 ’02 ’03 ’04 ’05 ’06 ’07 ’08 ’09 ’10 ’11 ’12 ’13 ’14 (FY) Japanese-GAAP IFRSs *Net income attributable to owners of the parent 26
Slide 28: World's Top Grossing Games Ranking
World’s Top Grossing Games Ranking 2014 2015 Apr. May June July Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. 1 Leading 2 position 3 4 5 (Source) Created by SoftBank Corp.based on App Annie Index for Games: iOS and Google Play combined - Worldwide 27
Slide 29: Gross Merchandise Volume YoY
Gross Merchandise Volume YoY 301% (Mar. 2014 - Mar. 2015) 2012 2014 2015 June March March 28
Slide 30: Market share: Solid position
Others Market share 4% 4% Solid 12% position + 80% Nov. 2014 60% *Market share based on available or estimated data of registered vehicles on respective platforms. 29
Slide 31: Gross Merchandise Volume (annualized)
Gross Merchandise Volume (annualized) Exceeds (USD) 100mil 2009 2010 2011 2012 2013 2014 2015 *USD =13,000 Indonesian Rupi 30
Slide 32: Quarterly Bookings
Quarterly Bookings Indexed at 2013 Q3 = 100 22x in 1.5 years 2013 Q3 2015 Q1 31
Slide 33: Telecom Internet
Telecom Internet 32
Slide 34: Issue Tech Companies Face
Issue Tech Companies Face 33
Slide 35: 30 Year Life Cycle
_ \ \ rer \ \ Fj N \ \ \ ; ! 30 Year Life Cycle
Slide 36: Reasons for Decline
Reasons for Decline Technology Founder Business model 35
Slide 37: Solution
Solution 36
Slide 38: Group of disruptive entrepreneurs
Group of disruptive entrepreneurs 37
Slide 39: Transform SoftBank
SoftBank Group Representative Director, President & COO (planned) Nikesh Arora Transform SoftBank *The title of Masayoshi Son, chairman and CEO remains the same. *Former SoftBank Corp. corporate name change subject to the approval of the AGM to be held on June 19, 2015. 38
Slide 40: Creating a sustainable growth business for centuries
Creating a sustainable growth business for centuries 39
Slide 41: Copyright (C) 2015 SoftBank Corp., All rights reserved.
Copyright (C) 2015 SoftBank Corp., All rights reserved.
Slide 42: Adoption of IFRSs, Definition of terms, Trademarks
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