Softbank Corp. · TSE:9434
Softbank — H1 FY2020 Earnings Presentation
74 slides from Softbank's earnings presentation, Nov 4, 2020
Slide 1: SoftBank Group Corp. sold 1 billion of our shares
September 2020 SoftBank Group Corp. sold 1 billion of our shares (Note) The selling shareholder is SoftBank Group Japan Corporation, a wholly owned subsidiary of SoftBank Group Corp.
Slide 2: Total Amount of Public Offering
Total Amount of Public Offering [JPY] Japan Post 1.31 tn 2017 SoftBank Largest 2020 1.24 tn NTT 2000 1.23 tn public offering MUFG 2009 Sumitomo 1.07 tn JPY 1.2 tn Mitsui FG 1.01 tn since 2000 except privatization projects 2010 NTT DOCOMO 2001 0.95 tn (Note) Based on each company’s disclosure documen
Slide 3: Number of Shareholders
Number of Shareholders Before public offering After public offering (End of FY2019) 1 Mizuho FG 990K Mizuho FG 990K Among largest 2 AEON 790K SoftBank 910K in Japan (Sep 2020) 3 Dai-ichi Life 750K AEON 790K 4 MUFG 720K Dai-ichi Life 750K 910K 5 SoftBank 700K MUFG 720K 6 NTT 640K NTT 640K (Notes) Bas
Slide 4: Shareholder Composition
Shareholder Composition *1 General SoftBank Group shareholders Increased public offering Before 62% 38% presence of general shareholders public offering 59.8% After 40.2% including individual and institutional investors Nearly half of general shareholders are individual investors (Notes) *1. SoftBan
Slide 5: What has changed since IPO?
What has changed since IPO? 4
Slide 6: Transformed from a mobile carrier
✓ Transformed from a mobile carrier ✓ Business has become diversified 5
Slide 7: Enhancing Non-telecom Businesses
Enhancing Non-telecom Businesses Dec 2018 Jun 2019 Nov 2019 Dec 2019 Jul 2020 Announced business 3 ZOZO became a PayPay users IPO Made ZHD a subsidiary subsidiary of ZHD integration between ZHD and LINE exceeded 30M The business integration is expected to be completed around Mar 2021 Internet Fashio
Slide 8: Diversified Revenue
Diversified Revenue Revenue FY2019 Mobile communications Revenue other than mobile charge revenue communications charge FY2017 29% : 71% Mobile communications Revenue other than mobile Mobile charge revenue communications charge communications 38% : 62% charge represents Mobile communica- Yahoo comm
Slide 9: Diversified Profit
Diversified Profit Operating Income FY2019 Mobile communications Profit other than mobile charge profit communications charge FY2017 38% : 62% Mobile communications Profit other than mobile Mobile charge profit communications charge communications 44% : 56% charge represents Mobile Yahoo communica-
Slide 10: Transformation to Ensemble of Leading ICT Players
Transformation to Ensemble of Leading ICT Players IPO Now Mobile Fixed-line Social Mobile Enterprise Distribution Fixed-line Payment Enterprise Distribution E-Commerce Media (Note) Regarding Social, the business integration between ZHD and LINE is expected to be completed around March 2021 9
Slide 11: Growth Strategy Beyond Carrier
Growth Strategy Beyond Carrier Non-telecom Businesses Becoming Growth Drivers Yahoo/LINE Telecom Business (Note) The business integration between ZHD and LINE is expected to be completed around March 2021 10
Slide 12: Earnings Results for the Six Months Ended September 30, 2020
Earnings Results for the Six Months Ended September 30, 2020 SoftBank Corp. November 4, 2020
Slide 13: Disclaimer
Disclaimer Important Notice Regarding Forward Looking Statements and Other Information This document is based on the information available to SoftBank Corp. (“we” or “the Company”) as of the time hereof and assumptions which it believes are reasonable. Statements contained herein that are not histor
Slide 14: Consolidated Results
Consolidated Results Q2 Fiscal Year 2020
Slide 15: Revenue
Revenue [JPY bn] 2,428.4 2,373.1 2,238.4 20,000 Even with COVID-19 impact 15,000 Total revenue 10,000 increased 5,000 continuously 0 (Notes) Actuals for FY2018 have been adjusted retrospectively to have FY2018 H1 FY2019 H1 FY2020 H1 consolidated Z Holdings Corporation (formerly Yahoo Japan Corporati
Slide 16: Revenue by Segment
Revenue by Segment [JPY bn] 2,373.1 2,428.4 Yahoo 484.1 557.2 Despite Consumer Distribution/ Other, Adjustment 238.8 235.4 segment decline Enterprise 314.1 334.6 Revenue in Yahoo Consumer Consumer and Enterprise services services Consumer 1,336.0 1,301.3 communications increased communications charg
Slide 17: Operating Income
Operating Income [JPY bn] 589.6 552.0 518.2 5,000 Up 7% 4,000 3,000 2,000 1,000 0 FY2018 H1 FY2019 H1 FY2020 H1 (Note) In this document, unless otherwise specified, the increase or decrease is the year-on-year comparison 16
Slide 18: Operating Income by Segment
Operating Income by Segment [JPY bn] 589.6 552.0 98.2 Yahoo 75.7 +30% Distribution/ 20.5 Other, Adjustment Enterprise 20.1 54.6 +18% 64.6 Yahoo and Enterprise OP increased significantly by Consumer Consumer services services Consumer 401.6 406.3 20~30% communications communications charge charge Mob
Slide 19: Net Income
Net Income [JPY bn] 314.6 327.4 315.1 3,000 2,500 Declined due to one-time factors such as valuation loss 2,000 Full-year net income 1,500 expected to surpass 1,000 FY2019 500 0 FY2018 H1 FY2019 H1 FY2020 H1 (Note) Net Income: net income attributable to owners of SoftBank Corp. 18
Slide 20: Net Income: YoY Comparison
Net Income: YoY Comparison [JPY bn] Good overall progress except one-time factors Operating Financing Income Net income income income/costs taxes attributable to non controlling interests 327.4 -19.9 -0.1 +37.6 Shares of profit/losses of -17.5 315.1 associates -12.4 accounted for using the equity me
Slide 21: Consolidated Results
Consolidated Results [JPY bn] FY2019 FY2020 YoY YoY % H1 H1 Revenue 2,373.1 2,428.4 +55.3 +2% Operating Income 552.0 589.6 +37.6 +7% Net Income 327.4 315.1 -12.3 - 4% (Notes) Net Income: net income attributable to owners of SoftBank Corp. 20
Slide 22: Progress Toward Forecasts
Progress Toward Forecasts [JPY] Revenue FY2020 Full-year 4900.0 bn 16,000 forecast Good progress 14,000 Operating income 12,000 10,000 920.0 bn towards increased Progress 8,000 50% revenue & profit H1 2,428.4 bn Net income 6,000 64% 485.0 bn forecasts 589.6 bn 4,000 65% 2,000 315.1 bn 0 (Note) FY202
Slide 23: SoftBank Growth Strategy
SoftBank Growth Strategy Non-telecom Expansion Solid Telecom Growth 22
Slide 24: Enterprise Business
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Slide 25: Enterprise: Revenue
Enterprise: Revenue [JPY bn] 334.6 314.1 301.6 Up 7% 300.0 Business 92.0 solution 78.4 +17% 65.0 and 250.0 others Driven by Business 94.4 200.0 Fixed-line 105.9 97.6 solution and others 150.0 increase by 17% 100.0 138.1 148.1 Mobile 130.7 50.0 0.0 FY2018 H1 FY2019 H1 FY2020 H1 24
Slide 26: Enterprise: Operating Income
Enterprise: Operating Income [JPY bn] 64.6 600 54.6 500 50.7 Growth driven by demand for telework 400 300 Up 18% 200 100 0 FY2018 H1 FY2019 H1 FY2020 H1 25
Slide 27: Enterprise: Business Solution and Others Revenue
Enterprise: Business Solution and Others Revenue Growing revenue in response to increasing demand for DX due to COVID-19 Cloud services IoT Security 200 1.4x in 1 year 100 90 2.9x in 1 year 100 90 2.2x in 1 year 80 80 70 70 150 60 60 50 50 100 40 40 30 30 50 20 20 10 10 0 0 0 19上期 FY2019 H1 20上期H1 F
Slide 28: Enterprise: Business Solution and Others Revenue
Enterprise: Business Solution and Others Revenue [JPY bn] Maintain double-digit 169.2 revenue growth 128.9 145.0 for future 2017年度 18年度 FY2019 FY2017 FY2018 19年度 2022年度 FY2022 ［目標］ [Target] 27
Slide 29: Moving to Hybrid Sales combining online and offline
Enterprise Growth Strategy Moving to “Hybrid Sales" combining online and offline Needs identification Negotiation Contract signing Support Offline Onsite interviews Face-to-face onsite Physical Onsite support (Conventional) negotiation seals/stamps Online (New Normal) Email marketing / Online semina
Slide 30: Enterprise Growth Strategy
Enterprise Growth Strategy 3,500,000 3,840K Thanks to DX Online seminars 3,000,000 Customer contacts 2,500,000 Online negotiation increased 5x 2,000,000 1,500,000 1,000,000 Email marketing 500,000 840K 0 FY2019 Q2 FY2020 Q2 (Note) The number of customer contacts is the sum of the number of emails de
Slide 31: Three Major Digital Revolutions
Enterprise Growth Strategy Three Major Digital Revolutions Digital Digital Digital Communication Automation Marketing RPA Smart phone Big data IoT Cloud Not bound by time or place Through automation of operations Through use of data improve productivity through diverse work styles realize cost reduc
Slide 32: First Completely Online Conference
First Completely Online Conference l CEOs from world-leading companies come together Held on October 29, 30, 2020 31
Slide 33: SoftBank World 2020 Results
SoftBank World 2020 Results (Two-day Event) Total Registers Unique Viewers Total Viewers 44K 30K Normalized 119K 118% YoY 314% YoY 682% YoY Lectures Viewed per Person Viewers per Session Average 4.0 Average 1,038 Last year: 1.7 (235% YoY) Last year: 164 (633% YoY) (Notes) Total registers: number of
Slide 34: Our Service Bases for the Digital Revolutions
Enterprise Growth Strategy: Our Strength Our 4 Service Bases for the Digital Revolutions Digital Communication Base Digital Marketing Base SaaS Software cアンチウイルス Security Base services PaaS Digital Automation Base Platform services BPR Use of data (Restructuring of work flow and organizational struc
Slide 35: MEOYT BRESRDS?
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Slide 36: Yahoo: Revenue
Yahoo: Revenue [JPY bn] 557.2 484.1 500 463.8 141.6 148.4 Up 15% 400 Media 146.6 300 200 415.6 Driven by Commerce growth Commerce 317.2 335.7 /Other 100 0 FY2018 H1 FY2019 H1 FY2020 H1 (Note) Revenue for Commerce and Media is restated for FY2019 to reflect the transfer of certain services and subsid
Slide 37: Yahoo: Operating Income
Yahoo: Operating Income [JPY bn] 98.2 900 800 78.0 75.7 Up 30% 700 600 500 Up 12% excluding the effect 400 300 from ZOZO consolidation 200 100 0 FY2018 H1 FY2019 H1 FY2020 H1 36
Slide 38: Yahoo: E-Commerce Transaction Value
Yahoo: E-Commerce Transaction Value [JPY bn] 1,492.2 1,400.0 1,200.0 1,188.8 1,076.8 Up 26% 1,000.0 965.4 800.0 Due to ZOZO consolidation and 600.0 400.0 growing demand for e-commerce under COVID-19 200.0 0.0 FY2017 H1 FY2018 H1 FY2019 H1 FY2020 H1 37
Slide 39: Increase investments in Commerce in H2 FY2020
Yahoo: Commerce Increase investments in Commerce in H2 FY2020 First half To achieve No. 1 in e-commerce of 2020s transaction value in Japan (Merchandise) (Note) Various campaigns shown in the left picture are information as of October 2020. Please refer to our websites for the campaign details 38
Slide 40: Yahoo: Advertising Revenue
Yahoo: Advertising Revenue [JPY bn] 162.9 1,600 155.7 160.3 144.8 1,400 Advertising revenue 1,200 Up 2% 1,000 800 600 Despite decrease in ad placements under COVID-19 Programmatic advertising 400 200 performs well due to media service access increase 0 17年度上期 FY2017 18年度上期 H1 FY2018 H1 19年度上期 FY2019
Slide 41: Yahoo: Media Synergy with SoftBank
Yahoo: Media Synergy with SoftBank Ad placements via SoftBank 68.3 6.8 bn [JPY] 60 Through synergy with SoftBank 4.444bn 50 Ad placements increased 1.5x 40 30 20 in half a year 10 Jun 2019 Became SoftBank subsidiary 0 19年度上期 FY2019 H1 19年度下期 FY2019 H2 20年度上期 FY2020 H1 40
Slide 42: PayPay
Smartphone Payment Service PayPay 41
Slide 43: PayPay: Cumulative Registered Users
PayPay: Cumulative Registered Users [Mil] 3,000万 30 Number of users 2,000万 20 Exceeded 33 mil (October 2020) 10 1,000万 0万 0 Oct 2018 Oct 2020 (Source) Data from PayPay Corporation, collected from October 5, 2018 to October 19, 2020 (Note) Number of registered users: number of accounts registered 42
Slide 44: PayPay: Number of Payments
PayPay: Number of Payments (for three months) [Mil] 500 5億 490 Number of payments 4億 400 increased by 3億 5x 300 2億 200 in one year 100 1億 100 0億 0 FY2019 FY2020 Q2 Q3 Q4 Q1 Q2 (Source) Data from PayPay Corporation 43
Slide 45: PayPay Platform Strategy
PayPay Platform Strategy PayPay at core to pursue business synergies Strengths as No. 1 Business Synergies No. of users 33+ mil Financial No. of merchants services 2.6+ mil locations Recognition No. 1 Mobile App update 60 times/year (Note) No. of stores: number of locations registered with PayPay, s
Slide 46: PayPay Synergies with Commerce and Mobile
PayPay Synergies with Commerce and Mobile Strengthening synergies by introducing loyalty programs Yahoo! JAPAN Benefit from Use of Use of credit card Premium SoftBank smartphone shopping with our Link with Yahoo ID Yahoo services user benefit user benefit services Use 3+ eligible services Every Sund
Slide 47: PayPay Bank
PayPay Bank (Currently The Japan Net Bank, Limited) Started service collaboration since PayPay launch QR code payment No.1 First internet-dedicated banking service in Japan PayPay The Japan Net Bank Strengthening collaboration every year ✔ Balance charge ✔ Mini app for loans (Note) The name is expec
Slide 48: PayPay Bank
PayPay Bank (Currently The Japan Net Bank, Limited) Rapid growth in two years in collaboration with PayPay Individual accounts: new acquisitions Corporate accounts: new acquisitions 500,000 1.7x Through PayPay 140,000 120,000 4.4x 400,000 in 2 years in 2 years 100,000 300,000 80,000 200,000 Directly
Slide 49: PayPay Securities
PayPay Securities (Currently One Tap BUY Co., Ltd.) Started trial service by collaborating with PayPay QR code payment No.1 Smartphone securities PayPay One Tap BUY Our subsidiary Using PayPay bonus for Investments Launched in Two options For short-term April 2020 investment - Challenge program For
Slide 50: PayPay Securities
PayPay Securities (Currently One Tap BUY Co., Ltd.) Bonus investment: number of users 160 1.6 mil Half of users are in their （Survey by us） Continuous usage rate Number of users 30s or Exceeded 1 mil 140 95％ under in 90 days 1.6 mil 120 Fastest in industry 100 80 60 Aim to implement commercial 40 in
Slide 51: Aim to create financial/fintech ecosystem
With PayPay as a gateway, aim to create financial/fintech ecosystem Insurance Splitting bills Hotel Investment/FX Loan Taxi Banking Public Utilities Communi- cation E-Commerce Card Asset management Lending 50
Slide 52: SoftBank Growth Strategy
SoftBank Growth Strategy Non-telecom Expansion Solid Telecom Growth 51
Slide 53: Consumer: Revenue
Consumer: Revenue [JPY bn] 1,336.0 1,301.3 1,289.0 1,200.0 Sales of goods 268.7 211.4 and others 308.0 Electricity1,000.0 28.6 47.4 Despite decline of handset sales 190.5 195.9 Broadband 800.0 175.7 Service revenues 600.0 increased Mobile 400.0 805.3 848.2 846.5 (Mobile communications, Broadband and
Slide 54: Consumer: Operating Income
Consumer: Operating Income [JPY bn] 401.6 406.3 4,000 383.5 3,500 3,000 2,500 Profit 2,000 increased steadily 1,500 1,000 500 0 18年度上期 FY2018 H1 19年度上期 FY2019 H1 20年度上期 FY2020 H1 53
Slide 55: Consumer
Consumer Clarification of pure mobile communications charge-related business Revenue Operating income By segment Clarification By segment Clarification Enterprise, Yahoo, Enterprise, Yahoo, Same as left Distribution and Other Same as left Distribution and Other Sales of goods Sales of goods and othe
Slide 56: Consumer
Consumer Proportion of pure mobile communications charge revenue decreasing every year Revenue Operating income 4% 5% 7% 13% 25% 25% 27% Non 29% 29% Consumer 45% (Enterprise, Yahoo, 40% Distribution) 44% 49% 43% 30% 33% Consumer 35% 34% 33% services (Sales of goods 26% and others, Broadband, etc.) M
Slide 57: Large-capacity Price Plan Evolution
Large-capacity Price Plan Evolution A series of innovative plans to lower mobile prices ~2015 2016 2017 2018 2020 White Plan Giga Monster Ultra Giga Monster+ Merihari Plan Ultra Giga Monster Support 5G Apply 50GB 50GB 50GB discount automatically 7GB 20GB for months of low data (After price plan chan
Slide 58: Price Rate per Gigabyte
Price Rate per Gigabyte (Data Plan Base) [JPY per gigabyte] 814 800 700 Achieved 80+% 600 500 400 300 300 price reduction 130 130 compared to 140 200 100 or lower or lower 5 years ago Eligible services Unlimited 0 video/SNS 2015 2016 2017 2019 2020 Ultra Ultra White Plan Giga Monster Giga Monster Gi
Slide 59: Multi-brand Strategy
Multi-brand Strategy Meeting needs of various users Large capacity Medium capacity Low capacity Reasonable Low price Ultra price low price 58
Slide 60: Announced new low-priced high-capacity data plan
Announced new low-priced high-capacity data plan Our major price plans (JPY/month) *2 *1 New price plan “Simple 20” 8,000 50GB ＋α 8,030 Large 7,000 20GB 6,000 Average capacity 5,000 20GB ( usage charge 6,400 ) 4,000 10GB 4,480 Monthly 3GB 3,505 JPY 4,480 3,000 2,000 2,505 1,000 Free 10-minute domest
Slide 61: MNP transfer out fee
To further revitalize mobile industry *1 Oct 2019～ Cancellation fee Spring 2021～ MNP transfer out fee Mobile Number Portability (Note) *1 Applicable for new enrollments of price plans after October 1, 2019 60
Slide 62: Average Price per Subscriber
Average Price per Subscriber Main Subscriber ARPU before Discounts [JPY/month] 5,720 5,720 5,700 5,620 6000 6,000 5,450 5,190 4,750 4,750 Price per Subscriber Decreased 3000 3,000 20% in five years (Notes) Main subscriber for ARPU calculation: smartphones, feature 00 phones, tablets, mobile data com
Slide 63: Smartphone Cumulative Subscribers
Smartphone Cumulative Subscribers [Mil] 25.00 2,500 23.03 21.09 2,000 19.25 In five years 17.45 16.26 1,500 1,000 1.5x Y!mobile subscribers increased 5x in 5 years 500 0 FY2015 15年度 FY2016 17年度 16年度 FY2017 18年度 FY2018 FY2019 19年度 FY2020 20年度 Q2 Q2 Q2 Q2 Q2 Q2 (Note) Including enterprise subscribers
Slide 64: Mobile Communications Charge Revenue
Mobile Communications Charge Revenue 15,480 [JPY tn] 14,747 14,381 1.43 13,748 13,983 1.39 14,000 12,000 Lower prices caused 10,000 temporary revenue decline 8,000 Subscriber growth has driven revenue 6,000 Y!mobile launch Revenue recovered due to caused temporary subscriber growth since 4,000 2,000
Slide 65: Smartphone Cumulative Subscribers
Smartphone Cumulative Subscribers [Mil] FY2023 target 30.00 22.08 24.13 Aiming for 20.13 business growth by increasing subscribers 2017年度 18年度 FY2019 FY2017 FY2018 19年度 2023年度 FY2023 (Note) Including enterprise subscribers 64
Slide 66: Next Generation Network Development
Next Generation Network Development 65
Slide 67: Investment in Network
Investment in Network Operating income ¥911.7 bn 9,000.00 8,000.00 Focus on NW investment from the beginning of our entry 7,000.00 into the mobile business 6,000.00 1/10 of 5,000.00 Capital Expenditure competitor’s Past 14 or less *1 JPY5 tn 4,000.00 3,000.00 years 2,000.00 Operating income 1,000.00
Slide 68: Highly Competitive NW with Aggressive Investments
Investment in Network Highly Competitive NW with Aggressive Investments *1 The world's highest level of quality Base station locations No. 1 Among 181 worldwide carriers SoftBank 230K sites KDDI 110K sites NTT DOCOMO 80K sites Voice App Video Experience Experience No. 1 In Japan (Source) Opensignal
Slide 69: Plan to invest in 5G and 6G JPY 2.2 tn over 10 years
Investment in Next Generation Network Plan to invest in 5G and 6G JPY 2.2 tn over 10 years Providing new value to society 5G for enterprises 5G devices Airborne base station Established Offer Fill in all service area gaps 5G development devices with base stations flying in base for enterprises with
Slide 70: 5G×∞
SoftBank Growth Strategy 5G×∞ Telecom technology accelerates Autonomous driving Remote operation non-telecom business Ultra-low latency Mass machine Unmanned store connections Unmanned Smart city warehouse Ultra-high speed Large capacity Smart home Security robot Game Face authentication Smart facto
Slide 71: FY2022 Targets
FY2022 Targets [JPY] Revenue 5.5 tn Operating 1 tn Net Income 530 bn Income 5.5 tn 4.9 tn 4.9 tn 4.7 tn 1 tn 912 bn 920 bn 818 bn 530 bn 462 bn 473 bn 485 bn FY18 FY19 FY20 FY22 FY18 FY19 FY20 FY22 FY18 FY19 FY20 FY22 [Forecast] [Target] [Forecast] [Target] [Forecast] [Target] (Notes) FY2022 targets
Slide 72: Shareholder Return Policy through FY2022
Shareholder Return Policy through FY2022 Dividends per Share [JPY] 86＋α Share 85 86 buyback 75 Dividends No dividend reduction Total shareholder return ratio of c. 85％ (FY2020~FY2022 weighted average) FY18 FY19 FY20 FY2022 [Forecast] [Target] (Note) Weighted average: total dividends and share buybac
Slide 73: Information Revolution - Happiness for everyone
Corporate Philosophy Information Revolution ─ Happiness for everyone
Slide 74: SoftBank
SoftBank