Softbank Corp. · TSE:9434
Softbank — H1 FY2019 Earnings Presentation
68 slides from Softbank's earnings presentation, Nov 5, 2019
Slide 1: Earnings Results for the Six Months Ended September 30, 2019
Earnings Results for the Six Months Ended September 30, 2019 SoftBank Corp. November 5, 2019
Slide 2: Disclaimer
Disclaimer This presentation is based on information available at the time it was made. Statements in the presentation that are not historical facts including, without limitation, our plans, forecasts and strategies are forward-looking statements. Forward-looking statements are subject to various ri
Slide 3: Revenue
Revenue [JPY bn] 2,373.1 2,238.4 Yahoo Japan impact 20,000 1,794.4 444.0 15,000 Up 32% 10,000 (Post Yahoo adj, Up 6%) 5,000 0 (Note) Actuals for FY2018 have been restated retrospectively to have consolidated Yahoo Japan Corporation from April 1, 2018. (On October 1, 2019, Yahoo Japan Corporation FY2
Slide 4: Revenue increased across all segments
Revenue [JPY bn] 2,373.1 2,238.4 477.8 Yahoo, others 2000.0 456.1 245.1 Distribution 191.6 1500.0 301.6 314.1 Enterprise Increased 1000.0 across all segments 1289.0 1336.0 Consumer 500.0 0.0 FY2018H1 FY2019H1 (Post adj) (Note) Actuals for FY2018 have been adjusted retrospectively to have consolidate
Slide 5: Diversified sources of revenue
Revenue [JPY bn] 2,373.1 Non Consumer Mobile 20,000 Consumer Mobile Diversified sources 1,686.9 1,794.4 36% of revenue 15,000 47% 45% Yahoo Japan 10,000 Other (Non Consumer Mobile) 5,000 53% 55% 64% 0 FY2017H1 FY2018H1 19年度上期 17年度… 18年度上期 FY2019H1 (Prior to adj) (Note) Consumer Mobile refers to mobi
Slide 6: Operating Income
Operating Income [JPY bn] 552.0 518.2 5,000 Yahoo Japan impact 443.3 74.9 Up 25% 4,000 3,000 (Post Yahoo adj, Up 7%) 2,000 1,000 0 FY2018H1 FY2018H1 FY2019H1 (Note) Actuals for FY2018 have been adjusted retrospectively to have consolidated (Prior to adj) (Post adj) Yahoo Japan Corporation from April
Slide 7: Net Income
Net Income [JPY bn] 314.6 327.4 3,000 294.7 Yahoo Japan impact 19.9 Up 11% 2,500 2,000 1,500 (Post Yahoo adj, Up 4%) 1,000 500 0 FY2018H1 FY2018H1 FY2019H1 (Notes) Net Income: net income attributable to owners of SoftBank Corp. (Prior to adj) (Post adj) Actuals for FY2018 have been adjusted retrospe
Slide 8: Consolidated Results
Consolidated Results [JPY bn] FY2018 FY2018 FY2019 YoY YoY % H1 H1 H1 (Prior to adj) (Post adj) (Post adj) (Post adj) Revenue 1,794.4 2,238.4 2,373.1 +134.7 +6% Operating Income 443.3 518.2 552.0 +33.8 +7% Net Income 294.7 314.6 327.4 +12.8 +4% (Note) Actuals for FY2018 have been adjusted retrospect
Slide 9: FY2019 Profit Progress Toward Forecast
FY2019 Profit Progress Toward Forecast [JPY bn] 62％ 1,200.0 Progress 1,000.0 Full Year 890.0 68％ Good progress 800.0 Forecast to annual forecast 600.0 H1 552.0 400.0 480.0 200.0 327.4 0.0 Operating Income Net Income (Note) Full year forecast was announced on May 8, 2019 8
Slide 10: SoftBank Growth Strategy
SoftBank Growth Strategy New Businesses AI / Technologies Cutting-edge business models Beyond Carrier Yahoo Japan Telecom Business Smartphone subscriber growth Broadband subscriber growth New infrastructure 99
Slide 11: Telecom Business
Telecom Business 10
Slide 12: Consumer: Revenue
Consumer: Revenue [JPY bn] 1,289.0 1,336.0 Sales of goods 297.4 1200.0 308.0 and others Up 4% 1000.0 190.5 Broadband 175.7 800.0 600.0 Mobile and Broadband drove the growth 400.0 805.3 848.2 Mobile 200.0 0.0 FY2018H1 FY2019H1 11
Slide 13: Smartphone Cumulative Subscribers
Smartphone Cumulative Subscribers [Mil] 23.03 21.09 20.00 15.00 Up 9% 10.00 (1.94 mil increase) 5.00 0.00 FY2016Q2 FY2017Q2 FY2018Q2 FY2019Q2 (Note) Including enterprise subscribers 12
Slide 14: Comply with amended Telecommunication Business Act
Comply with amended Telecommunication Business Act Effective from October 1, 2019 No fixed-term for contracts No cancellation fee In addition to unbundle Unbundled Already Unbundled Price reduction in place ＋ Plans* since Sep 2018 Plans* Higher data in Oct 2019 capacity *Unbundled plans: price plans
Slide 15: Unbundled Plans already in place
50GB+ data plan Unbundled Plans already in place Since September 2018 14
Slide 16: Comparison of Large Capacity Data Plans
Comparison of Large Capacity Data Plans （Prices for first year enrollment) Remain competitive even after other players reduced prices JPY6,380 JPY5,480 JPY5,480 JPY5,380 JPY5,380 JPY5,380 JPY4,980 JPY4,980 JPY4,480 JPY4,480 JPY3,980 JPY3,480 SoftBank A B SoftBank A B SoftBank A B SoftBank A B One Tw
Slide 17: Unbundled Plans introduced October 2019
October 2019 Unbundled Plans introduced 16
Slide 18: Y!Mobile New Plans
Y!Mobile New Plans Price Reduction Capacity Increase Smartphone Basic Plan S Plans Monthly data capacity Monthly fee after 14 months 3GB Smartphone basic plans S 2GB Max 12% M 6GB 9GB DOWN R 14GB (Note) Price reduction refers to the comparison of “Smartphone Basic Plan S” (previous “Smartphone Plan
Slide 19: Customer Satisfaction for Prices
Customer Satisfaction for Prices Ultra Giga Monster Plus (50GB+) plan All smartphone price plans All smartphone price plans Satisfied Satisfied Satisfied 96％ 94％ 94％ Question: At what level are you satisfied with the current pricing? (Note) Survey by the Company in September 2019. Survey for custome
Slide 20: Broadband Cumulative Subscribers
Broadband Cumulative Subscribers [Mil] 7.76 7.38 7.00 6.00 5.00 4.00 6.16 Up 12% 3.00 5.50 2.00 1.00 0.00 FY2016Q2 FY2017Q2 FY2018Q2 FY2019Q2 (Note) “SoftBank Air” subscribers are included in “SoftBank Hikari” subscribers 19
Slide 21: Enterprise: Revenue
Enterprise: Revenue [JPY bn] 301.6 314.1 300.0 78.4 Business solution 65.0 and others 250.0 200.0 105.9 97.6 Fixed-line Up 4% 150.0 Business solution drove the growth 100.0 130.7 138.1 Mobile 50.0 0.0 FY2018H1 FY2019H1 20
Slide 22: Enterprise: Revenue of Business Solution and Others
Enterprise: Revenue of Business Solution and Others [JPY bn] 78.4 70.0 65.0 Up 21% 60.0 50.0 40.0 RPA 30.0 Robot Network IoT 20.0 Cloud 10.0 Digital 0.0 Marketing AI Security FY2018H1 FY2019H1 21
Slide 23: Centimeter Level Positioning Service
Centimeter Level Positioning Service Service image GNSS Satellite High precision 3,300 locations Deviation few cm location information nationwide Projects in progress with c.100 companies Positioning info Detection data Correction info transmission SoftBank proprietary Position correction User refer
Slide 24: Centimeter Level Positioning: Yanmar Agri demonstration
Centimeter Level Positioning Service Demonstration experiment with Yanmar Agri Automatic operation of agricultural machinery with accurate position information support Deviation No unplowed field missing 0.89cm (Note) Position deviation: measured when agricultural machinery is in stationary. 23
Slide 25: Drone Inspection Service
Drone Inspection Service Nationwide infrastructure inspection application Plan to install centimeter level positioning service <Target facility examples> Service started Power lines Bridges Railways November 1 Detecting abnormalities with drone aerial photography Power plans Construction site Arena
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Slide 27: 5G Pre-services at International Basketball Games
5G Pre-services 5G Antenna International Basketball Games Providing 5G Pre-service VR camera 5G service installed under hoop coverage on-site 26
Slide 28: Condolences to those affected by the typhoon
We would like to express our heartfelt condolences to everyone who has suffered from the typhoon. 27
Slide 29: SoftBank Disaster Response Activities
SoftBank Disaster Response Activities 28
Slide 30: Network Response Plans for Disasters
Network Response Plans for Disasters 1 2 3 Strengthen nationwide Action plans for base Various solutions for network centers station power outrage recovery Important sites in operation for more than Mobile base station vehicles / Power supply Action plans prepared for power outage 48 hours during po
Slide 31: Disaster Response: Recovery Activities
Disaster Response: Recovery Activities Typhoon No. 19 (Hagibis) Recovery Activities Prompt response center setup Wide area support All effort recovery Including partners Established mitigation Support headquarter 2 days before resources 10,000* staff in action Typhoon No.19 came dispatched from 6 ar
Slide 32: Disaster Response: Rescue Support Activities
Disaster Response: Rescue Support Activities Typhoon No. 19 (Hagibis) Support Activities Free charge service Free Wi-Fi service Support measures For customers in the areas that Disaster Relief Free charge services in Using common SSID Law applies to SoftBank and Y!mobile shops “00000JAPAN” free in a
Slide 33: Continuing to strengthen disaster response efforts
SoftBank will continue to strengthen disaster response efforts as a telecommunications carrier responsible for social infrastructure 32
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Slide 35: Yahoo: Revenue
Yahoo: Revenue [JPY bn] 463.8 484.1 450.0 400.0 147.3 Media 146.6 350.0 Up 4% 300.0 250.0 200.0 150.0 317.2 336.8 Commerce and Other 100.0 50.0 0.0 FY2018H1 FY2019H1 34
Slide 36: Yahoo! JAPAN Monthly Logged-in User IDs
Yahoo! JAPAN Monthly Logged-in User IDs Media [Mil] 50.49 50.00 45.87 40.00 30.00 Up 10% 20.00 10.00 0.00 FY2016Q2 FY2017Q2 FY2018Q2 FY2019Q2 (Source) Yahoo Japan Earnings Results Presentation Materials, dated November 1, (Note) Number of Yahoo! JAPAN IDs logged in each month at the end of the quart
Slide 37: Yahoo Segment: Strengthen Enterprise Sales
Yahoo Segment: Strengthen Enterprise Sales Transferred Dispatched Integrated team formed Yahoo Service Promotion Dept. within SoftBank Enterprise Division Planning Marketing Data Consulting 36
Slide 38: Yahoo Segment: Total solution for enterprise customers
Yahoo Segment: Strengthen Enterprise Sales Total solution for enterprise customers Yahoo Integrated Analysis Effort & Data management & Forecast Marketing Measurement CM Advertisement products etc. Media promotion strengthened IoT via SoftBank’s total solution to enterprise customers Marketing consu
Slide 39: E-commerce Transaction Value
E-commerce Transaction Value Commerce [JPY bn] 600.0 604.7 540.0 500.0 Up 12% 400.0 300.0 200.0 100.0 0.0 FY2016Q2 FY2017Q2 FY2018Q2 FY2019Q2 (Source) Yahoo Japan Earnings Results Presentation Materials dated November 1, 2019 38
Slide 40: PayPay: New E-commerce Services
PayPay: New E-commerce Services Premium shopping mall Good-deal flea market app Mall Flea Market Higher rank of Good deals either shopping experience sell or buy via via selected stores PayPay (Note) PayPay Mall and PayPay Flea Market are Yahoo services. PayPay is a trademark owned by Yahoo. 39
Slide 41: Cross Company E-commerce Projects
Cross Company E-commerce Projects Japan PayPayPay Project Yahoo PayPay SoftBank Mall Government PayPay consumer return customer return Max. 20% equivalent return Total Mobile subscribers gain “10 B Yen Giveaway Campaign” additional values PayPay Flea Market and Yahoo! Shopping 10% return! various ca
Slide 42: Yahoo aims to make ZOZO a consolidated subsidiary
Yahoo aims to make ZOZO a consolidated subsidiary Tender Offer in Progress (Note) On September 12, Yahoo Japan announced to start a Tender Offer for ZOZO, aiming to consolidate ZOZO. The tender offer is in progress 41
Slide 43: E-commerce Transaction Value (sales of goods)
E-commerce Transaction Value (sales of goods) Commerce [JPY Tri] Target first half of 2020s No.1 2.2 0.3 in Japan 1.9 FY2018 FY2019 (Combined) (Consolidated) 42 (Note) Yahoo Japan announcement materials dated September 12, 2019
Slide 44: Growth in New Businesses
Growth in New Businesses 43
Slide 45: PayPay
Smartphone Payment Service PayPay 44
Slide 46: PayPay: Cumulative Registered Users
PayPay: Cumulative Registered Users [Mil] Government Consumer 1,500 15.00 Return* + Convenient 19.0 mil Anytime PayPay Anywhere Exciting PayPay 1,000 10.00 2nd JPY10bn campaign JPY10bn 13 months since launch Give out campaign 5.00 500 0 * Government Consumer Return refers to the Point Reward Project
Slide 47: PayPay: Number of Transactions per Month
PayPay: Number of Transactions per Month [Mil] 85.0 Daily usage 5,000 50.0 Steep rise 42.0 Government PayPay Consumer Customer Return Return Total 0 10% Return! Jan 2019 Oct 2019 (Source) Data by PayPay Corporation 46
Slide 48: QR Code Payment Service Intention of Use Survey
QR Code Payment Service Intention of Use Survey 30 25 Intention of Use 20 15 Far ahead 10 A B 5 C D 0 Jan 2019 Oct 2019 (Source) Survey by PayPay Corporation. A, B, C and D are other companies who provide QR code payment services. 47
Slide 49: Recognition Survey: Daily Payment Method Preference
Recognition Survey: Daily Payment Method Preference 50% Cashless payment 36% 28% 30% Intention of use 23% for cashless 21% 17% increased Cash payment 0% (Source) Research by our company Period and sample: August 2-8 (n=3,353), September 6-12 (n＝3,594), October: 4-7 (n＝ August 2019 September October
Slide 50: Recognition Survey: Cashless Payment Preference
Recognition Survey: Cashless Payment Preference 45% 41% 40% 35% 31% No.1 30% 25% 20% 15% 10% 9% excluding credit card 10% 8% 7% 5% 0% Credit card PayPay Transportation QR-code Commerce Commerce e-Money settlement e-Money e-Money (Source) Survey by our company (Total) Sample: October 4-7, 2019 n＝2,04
Slide 51: Realizing new functions continuously
Realizing new functions continuously Utility bill payments Cash withdrawal PayPay can be used to pay bills for Withdrawal from PayPay to bank account electricity, gas, water, tax and etc. is possible with the registration for fund transfer business license completed Cash withdrawal from PayPay balan
Slide 52: Evolution to Super App from a payment app
Evolution to “Super App” from a payment app Off-line Utility bills/Tax On-line/O2O Convenience Barber shop EC Movie store reservation Utilities Tax Phone bill Orders/ Taxi Retail store Food stand Booking Hotel Ticket Pharmacy Restaurant Flight tickets Financial Services P2P/Social Postpay Gold Pocke
Slide 53: WeWork
Community Promoted Workspace WeWork The information contained herein is provided for illustrative purposes only. The information presented here was provided by WeWork. Nothing herein should be construed as a recommendation of any investment or security. (Photo credits) WeWork 52
Slide 54: WeWork Memberships in Japan
WeWork Memberships in Japan [Memberships] 17,000 10,000 17,000 1 year and 7 months since launch in February 2018 0 0 Mar Jun Sep Dec Mar Jun Sep (Source) Provided by WeWork Japan 2018 2019 (Note) Memberships at the beginning of each month The information herein is provided for illustrative purposes
Slide 55: WeWork Japan Locations
WeWork Japan Locations Osaka Roppongi Yokohama Kamiyacho (Midosuji) Marunouchi Kyobashi Yotsuya Nihonbashi Expanding Ginza Osaka (Namba) Jimbocho Toranomon nationwide Shimbashi Nogizaka Fukuoka Hyogo 23 locations in 6 cities (Nakasu) (Sannomiya (As of November 2019) Fukuoka Osaka Hibiya Nagoya (Daim
Slide 56: DiDi
AI Taxi-hailing Platform DiDi The information contained herein is provided for illustrative purposes only. The information presented here was provided DiDi. Nothing herein should be construed as a recommendation of any investment or security. 55
Slide 57: DiDi: Taxi-hailing App Comparison
DiDi: Taxi-hailing App Comparison Taxi-hailing app Number of downloads per month No.1 Number of downloads No.2 No.1 No.3 for 3 consecutive months No.4 Jan Feb Mar Apr May Jun Jul Aug Sep 2019 (Source) App Annie from January 1 to September 30, 2019 (Note) Comparison of monthly number of downloads amo
Slide 58: DiDi: Number of Contracted Companies
DiDi: Number of Contracted Companies [Number of companies] 333 300 250 200 150 X18 13 months since launch 100 50 0 Sep 2018 Oct 2019 (Source) Provided by DiDi Mobility Japan (Note) Number of contracted companies 57
Slide 59: DiDi: Service Area Expansion Target
DiDi: Service Area Expansion Target Expand to 16 cities (As of Oct 2019) 20 cities in 2019 (Source) Provided by DiDi Mobility Japan The information contained herein is provided for illustrative purposes only. The information presented here was provided DiDi. Nothing herein should be construed as a r
Slide 60: DiDi: Seamless use by Chinese visitors
DiDi Seamless use of taxi-hailing app by Chinese visitors Seamless Seamless support for vistors from Mexico, Australia, etc. The information contained herein is provided for illustrative purposes only. The information presented here was provided DiDi. Nothing herein should be construed as a recommen
Slide 61: OYO Hotels
Innovative Hotel Service OYO Hotels The information contained herein is provided for illustrative purposes only. The information presented here was provided OYO. Nothing herein should be construed as a recommendation of any investment or security. 60
Slide 62: OYO Hotels Japan: Number of Rooms in Japan
OYO Hotels Japan: Number of Rooms in Japan [Number of rooms] 5,200 5,000 4,000 Guest room 3,000 5,200+ 2,000 Opened in 39 prefectures in Japan in only 7 months 1,000 0 Apr May Jun Jul Aug Sep Oct (Source) Provided by OYO Hotels Japan (Note) Hotel rooms opened under OYO brand as of October 31, 2019 6
Slide 63: OYO Hotels Japan: Average Occupancy
OYO Hotels Japan: Average Occupancy 100% 84% 80% Average occupancy 60% 40% 80％+ 42% 3 months after OYO brand 20% 0% (Source) Provided by OYO Hotels Japan OYO加盟前 OYO加盟後 Before OYO After OYO brand (Note) Sample: c 400 rooms opened in May 2019 brand Before OYO brand: occupation rate before reformed as
Slide 64: OYO Hotels Japan: Booking from various online sites
OYO Hotels Japan In addition to OYO app Booking from various online sites Others (Note) The photos are image 63
Slide 65: Accelerating collaboration with partners inside and outside of Japan
Accelerating the collaboration with partners inside and outside of Japan in various areas Collaboration with SoftBank Vision Fund Investees Collaboration with Other Partners JV JV JV JV JV JV JV JV JV JV Invest Invest Collabo Collabo JV ment ration ration ment Collabor Collabor Collabor Invest Colla
Slide 66: SoftBank Growth Strategy
SoftBank Growth Strategy New Businesses AI / Technologies Cutting-edge business models Beyond Carrier Yahoo Japan Telecom Business Smartphone subscriber growth Broadband subscriber growth New infrastructure 65 65
Slide 67: Information Revolution — Happiness for everyone
Information Revolution — Happiness for everyone
Slide 68: SoftBank
SoftBank