Softbank Corp. · TSE:9434
Softbank — FY2019 Earnings Presentation
115 slides from Softbank's earnings presentation, May 11, 2020
Slide 1: SoftBank
ea OOftBank
Slide 2: Sympathy to all those affected by COVID-19
We would like to express our heartfelt sympathy to all those affected by COVID-19
Slide 3: Our responsibility as a telecommunication carrier
Our responsibility as a telecommunication carrier
Slide 4: Stay at home
Work from home Closed schools Stay at home Businesses asked to close Travel restrictions Cancelled events
Slide 5: Connecting people to people
Connecting people to people
Slide 6: How we are helping
Offering students and Providing digital Providing 2,000 children additional materials for smartphones to the data free-of-charge remote learning Diamond Princess for communication free-of-charge cruise ship How we are helping Providing remote Extending deadline Over 90% of working solutions for paym
Slide 7: Continue to support social infrastructure
Continue to support social infrastructure
Slide 8: SoftBank
ea OOftBank
Slide 9: Our Priority Issues (Materiality) for SDGs Management
Our Priority Issues (Materiality) for SDGs Management
Slide 10: Sustainable Development Goals (SDGs)
Sustainable Development Goals (SDGs) 9
Slide 11: Corporate Philosophy
Corporate Philosophy Information Revolution — Happiness for Everyone 10
Slide 12: Pursuing social contribution through the Information Revolution
Consistently pursue "social contribution through the Information Revolution" 2008~ 2000~ Smartphones 1995~ Mobile phones 1990~ Internet PC 11
Slide 13: Communication technology innovation
Communication Digital technology innovation transformation AI・IoT・Robotics 4G → 5G Largest paradigm shift ever Work style reform Climate Change Diversity, decline of working population, Environmental pollution and remote working depletion of resources 12
Slide 14: Priority Issues
Our Materiality Priority Issues Contribute to achieve SDGs 13
Slide 15: Building society and industry through digital transformation
Building society and industry through digital transformation Create new industries and provide solutions for transforming various businesses in society by utilizing cutting-edge technologies such as 5G and AI. 14
Slide 16: Connecting people and information to create new excitement
Connecting people and information to create new excitement Provide new experiences and enrich the lifestyles of our customers by promoting the adoption of smart devices. 1 Concurrently, create value for both consumers and 5 enterprises by providing partners with attractive platforms that connect peo
Slide 17: Creating new business through open innovation
Creating new business through open innovation Develop cutting-edge technologies and innovative business models in Japan by leveraging our relationships with global leading innovative companies. Concurrently, promote the development of a highly-skilled workforce and the establishment of an organizati
Slide 18: Contributing to the global environment with the power of technology
Contributing to the global environment with the power of technology Contribute to mitigating climate change, promoting a circular economy and the adoption of renewable energy by utilizing cutting-edge technologies to pass on a sustainable global environment to the next generation. 17
Slide 19: Building high-quality social communication networks
Building high-quality social communication networks Commit to maintaining a constantly-connected and stable network and to protecting our customers' important data, as communication networks serve as a lifeline. 18
Slide 20: Developing a resilient management foundation
Developing a resilient management foundation Conduct corporate governance with integrity to earn the trust of society through ongoing dialogue with stakeholders. In addition, foster innovation and improve the well-being of our employees by developing a progressive workplace environment where diverse
Slide 21: Materiality: SoftBank Priority Issues
Materiality SoftBank Priority Issues issues through Solving social business Building society and Connecting people and Creating new business industry through information to create through open digital transformation new excitement innovation corporate activities issues through Solving social Contrib
Slide 22: A world where all things, information and minds are connected
A world where all things, information and minds are connected 21
Slide 23: Earnings Results for the Fiscal Year Ended March 31, 2020
Earnings Results for the Fiscal Year Ended March 31, 2020 SoftBank Corp. May 11, 2020
Slide 24: 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 25: Consolidated Results
Consolidated Results Fiscal Year 2019 24
Slide 26: Revenue
Revenue [JPY bn] 4,861.2 4,656.8 4,500.0 ZHD impact 4,000.0 3,746.3 910.5 30% 3,500.0 3,000.0 2,500.0 Up 2,000.0 (Post ZHD adj, Up 4%) 1,500.0 1,000.0 500.0 0.0 (Notes) Actuals for FY2018 have been adjusted retrospectively to have FY2018 2018年度 FY2018 2018年度 FY2019 2019年度 consolidated Z Holdings Cor
Slide 27: Revenue by Segment
Revenue by Segment [JPY bn] 4,861.2 4,656.8 4,500.0 1,052.9 Yahoo 4,000.0 954.4 472.7 Distribution, 3,500.0 401.4 others 3,000.0 2,500.0 620.5 638.9 Enterprise Increased 2,000.0 across all segments 1,500.0 2,680.5 2,696.7 Consumer 1,000.0 500.0 0.0 2018年度 FY2018 2019年度 FY2019 (Note) Actuals for FY20
Slide 28: Operating Income
Operating Income [JPY bn] 9,000 911.7 818.2 ZHD impact 8,000 719.5 98.7 7,000 6,000 5,000 Up 27% (Post ZHD adj, Up 11%) 4,000 3,000 2,000 1,000 0 2018年度 FY2018 FY2018 2018年度 2019年度 FY2019 (Note) Actuals for FY2018 have been adjusted retrospectively to have (Prior to ZHD adj) (Post ZHD adj) consolida
Slide 29: Operating Income by Segment
Operating Income by Segment [JPY bn] 911.7 865.0 818.2 152.3 Yahoo 135.9 17.2 Distribution 765.0 15.2 83.6 Enterprise 665.0 76.3 565.0 465.0 Increased 365.0 across all segments 627.4 647.3 265.0 Consumer 165.0 11.4 65.0 -36.7 Other, Adjustment -35.0 2018年度 FY2018 2019年度 FY2019 (Note) Actuals for FY2
Slide 30: SoftBank Growth Strategy
SoftBank Growth Strategy New Business Fields Beyond Carrier AI / Technologies Cutting-edge business models Yahoo Telecom Business Smartphone subscriber growth Broadband subscriber growth New infrastructure 29
Slide 31: Telecom Business
Telecom Business 30
Slide 32: Consumer: Revenue
Consumer: Revenue [JPY bn] 2,680.5 2,696.7 2,611.9 2,500.0 Sales of goods 690.8 636.1 and others 706.5 Revenue from handset sales declined Telecom Service Revenue 2,000.0 361.1 383.8 Broadband 316.3 (Mobile and Broadband) 1,500.0 1,000.0 1,589.0 1,628.6 1,676.8 Mobile Up 4% 500.0 (Year on Year) 0.0
Slide 33: Promoting multi-brand strategy
FY2019 Initiatives Promoting multi-brand strategy Enhanced service plans Enhanced service plans Sales expansion 5G launch Sales expansion Strengthened collaboration with Yahoo and PayPay Initiatives to maintain and improve communication quality 32
Slide 34: SoftBank brand
BFP, YVIFNYZ.
Slide 35: Large Capacity and Smartphone Debut Plans
(Note) All prices exclude tax unless otherwise noted. Large Capacity Smartphone Debut Merihari Plan Since March 2020 Smartphone Debut Plan Since June 2019 Subjective video and SNS Data capacity *1 Voice and Data Unlimited 50GB (12 months) Basic There might be speed limit depending on timing ¥ 980 /m
Slide 36: Merihari Plan subscribers and satisfaction
Large Capacity Smartphone Debut Merihari Plan Since March 2020 Smartphone Debut Plan Since June 2019 Q. At what level are you satisfied with Number of subscribers 100,000 Merihari plan? 90,000 80,000 70,000 More than 2 times compared with prior plan 60,000 Satisfied 50,000 91％ 40,000 Prior plan 30,0
Slide 37: Y!mobile
= ia ° £ o
Slide 38: Unbundled plans and dual brand shop expansion
Unbundled Plan Sales Promotion Enhanced Price PlansSince Oct 2019 Dual Brand Shop Expansion Simple plans with no cancellation fee SoftBank and Y!mobile dual brand shops expanding nationwide S Ｍ Ｒ c. 1,800 shops 3GB /month 9GB /month 14GB /month 1.5 times in 2 years Free domestic voice calls *1 (up t
Slide 39: Y!mobile cumulative subscribers
Unbundled Plan Sales Promotion Enhanced Price PlansSince Oct 2019 Cumulative Subscribers Q. At what level are you satisfied with Y!mobile price plans? 600 500 Exceeded 5 mil 400 Satisfied 300 94％ 200 100 0 FY16 FY17 FY18 FY19 (Note) Survey by SoftBank Corp. in April 2020. Survey for customer satisfa
Slide 40: LINE MOBILE
LINE MOBILE
Slide 41: LINE MOBILE satisfaction and subscribers
Customer Satisfaction Cumulative Subscribers Since LINE MOBILE joined SoftBank family Q. At what level are you satisfied with 2 times 100 LINE MOBILE price plans? 90 80 More than 70 Satisfied 60 50 93％ 40 30 20 10 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 (Note) Survey by SoftBank Corp. in April 2020. Survey FY2018
Slide 42: Collaboration with Yahoo and PayPay
Collaboration with Yahoo and PayPay Acquisition Retention mobile service Award PayPay for subscription Offer user benefit *1 bonus light Use Yahoo or PayPay as Improve customer satisfaction a trigger for mobile subscription by providing user benefits (Notes) All information is as of May 11, 2020. *1
Slide 43: Smartphone Cumulative Subscribers
Smartphone Cumulative Subscribers [Mil] 24.13 22.08 2.05 mil net adds 2,000 1,500 Up 9% Net adds for all brands 1,000 500 0 2016年度 FY2016 17年度 FY2017 18年度 FY2018 19年度 FY2019 (Note) Including enterprise subscribers. 42
Slide 44: Smartphone Churn Rate
Smartphone Churn Rate [%] 1.00% 0.86% 0.83% 0.80% 0.60% 0.70% Record low 0.40% 0.20% 0.00% 2017年度 FY2017 2018年度 FY2018 2019年度 FY2019 (Notes) Churn rate = Number of churns / Number of active subscribers Figures in graph show the average monthly churn rate for each fiscal year. 43
Slide 45: Initiatives to maintain and improve network quality
Initiatives to maintain and improve network quality Maintained by indispensable daily Traffic at peak time network efforts Build additional base stations, actively use Massive MIMO technology, and make other efforts Doubled in 2 years 1,200 1,000 800 600 400 200 0 17年度 FY17 18年度 FY18 19年度 FY19 44
Slide 46: The beginning of a new era where everything is connected
The beginning of a new era where everything is connected 45
Slide 47: Promoting early 5G nationwide deployment
SoftBank 5G Deployment Maximize our technology strengths and collaborate with other companies Promoting early 5G nationwide deployment Using existing Massive MIMO Infrastructure sharing base stations knowhow with KDDI Advantages of Massive MIMO April 2020 Nationwide Number of antennas Dedicated c. 2
Slide 48: 5G Deployment Plan
5G Deployment Plan March 2020 End of FY2020 During FY2021 End of FY2021 Population coverage Nationwide Stand Alone Launch （47 prefectures） deployment 90%+ Ultra-low latency Mass machine (10,000+ base stations) (50,000+ base stations) connections Ultra-high speed Large capacity 47
Slide 49: A New Society with 5G
A New Society with 5G Remote operation Ultra-low latency Autonomous driving Mass machine connections Unmanned stores Unmanned Ultra-high speed Smart city warehouse Large capacity Smart home Security robot Game Face Smart factory authentication VR 48
Slide 50: Enterprise: Revenue
Enterprise: Revenue [JPY bn] 638.9 604.2 620.5 600.0 Enterprise total revenue 3% 500.0 268.1 275.1 Mobile 264.5 400.0 Up 300.0 Business solution and 194.6 Fixed-line Mobile grew steadily 210.8 207.4 200.0 Fixed-line declined 100.0 169.2 Business solution 128.9 145.0 and others 0.0 2017年度 FY2017 18年度
Slide 51: Enterprise: Revenue
Enterprise: Revenue [JPY bn] 638.9 604.2 620.5 600.0 Business solution and others 17% 500.0 268.1 275.1 Mobile 264.5 400.0 Up 300.0 Drivers include cloud, IoT, 207.4 194.6 Fixed-line security and digital marketing 210.8 200.0 100.0 169.2 Business solution 128.9 145.0 and others 0.0 2017年度 FY2017 18年
Slide 52: Enterprise: Business Solution Initiatives
Enterprise: Business Solution Initiatives Support digitalization of enterprises in various business Cloud IoT Security Digital Marketing Revenue Up 36% YoY Revenue Up 213% YoY Revenue Up 167% YoY Revenue Up 26% YoY Fluorescent light integrated security camera service Remote monitor for LP gas meters
Slide 53: Enterprise demand for digitalization increasing
Enterprise Demand for digitalization of enterprises is increasing further Remote access to corporate system Web conference Voice calls *1 *2 Internet access via VPN (Support Microsoft Teams) 6 times 10 times 2 times New connected IDs New sign-ups New connected IDs Feb 2020 Mar 2020 Feb 2020 Mar 2020
Slide 54: Solve issues for enterprises and society through digital transformation
Solve issues for enterprises and society through digital transformation 53
Slide 55: 54
54
Slide 56: Yahoo: Revenue
Yahoo: Revenue [JPY bn] 1,052.9 1,000.0 954.4 307.7 Media 800.0 301.9 600.0 Up 10% 400.0 745.3 Commerce 652.5 and Other 200.0 0.0 2018年度 FY2018 2019年度 FY2019 (Note) ZHD made ZOZO, Inc that operates ZOZOTOWN - an online fashion shopping website - a subsidiary in November 2019, and FY2019 revenue in C
Slide 57: Yahoo: Commerce Business
Yahoo: Commerce Business Made dynamic management decisions promptly after becoming SoftBank subsidiary Acquisition of Collaboration X shopping concept New services ZOZO with Yamato Cross and others to be launched 56
Slide 58: Yahoo: e-Commerce Transaction Value
Yahoo: e-Commerce Transaction Value [JPY bn] 2,593.6 25,000 2,269.4 20,000 15,000 Up 14% Impact from ZOZO consolidation 10,000 (5 months) and PayPay Mall launch, etc. 5,000 0 2016年度 FY2016 17年度 FY2017 18年度 FY2018 FY2019 19年度 (Source) ZHD Earnings Results Materials as of April 30, 2020 (Note) Transac
Slide 59: Yahoo: Media Business
Yahoo: Media Business Collaborating with SoftBank to strengthen sales Ad products Sales Effect FY2019 2H Uplift c. ¥ 4.4 bn Ad placements Attractive SoftBank Corp. SoftBank sales network Ad products Enterprise sales New clients Yahoo existing clients Digital marketing subsidiary INCUDATA Corp. Addit
Slide 60: Yahoo Operating Income
Yahoo Operating Income (ZHD consolidated operating income) [JPY bn] ZHD Consolidation June 2019 2,000 185.8 1,800 1,600 152.3 1,400 140.5 1,200 1,000 Turnaround 800 after SoftBank consolidated ZHD 600 ZOZO consolidation impact +8.9 400 Collaboration with SoftBank accelerated 200 growth in Commerce a
Slide 61: Create a future that others cannot repeat
Communication AI IoT Media/Advertisement Create a future that others cannot repeat Commerce Payment FinTech SNS (Note) Concluded definitive business integration agreement on December 23, 2019 60
Slide 62: Distribution and Other
Distribution and Other 61
Slide 63: Distribution
Distribution Expanded due to demand for PC replacement Revenue Operating income [JPY bn] 482.4 300 4,500 417.3 250 4,000 3,500 347.1 17.2 200 3,000 15.2 2,500 150 13.3 2,000 100 1,500 1,000 50 500 0 0 2017年度 FY2017 18年度 FY2018 19年度 FY2019 2017年度 FY2017 18年度 FY2018 19年度 FY2019 62
Slide 64: Other: Settlement Service Business
Other: Settlement Service Business SB Payment Service Corp. 80 Operating Income (Standalone) Operating Income Up 60% 70 [JPY bn] 6.9 60 50 4.2 Transaction value 3.4 c. ¥3.5 tn 40 (FY2019) 30 20 10 0 2017年度 FY2017 2018年度 FY2018 2019年度 FY2019 (Note) Operating income is on a JGAAP basis 63
Slide 65: Operating Income: Analysis of YoY Change
Operating Income: Analysis of YoY Change [JPY bn] 2,000 その他 +494 7,951 流通 ヤフー 1,500 +20 +162 法人 818.2 ＋18.9 +71 1,000 500 0 FY2018 2018年度 2019年度 (Post ZHD Adj) 64
Slide 66: Operating Income (YoY): Consumer
Operating Income (YoY) [JPY bn] 2,000 その他 +481 7,951 Consumer 流通 ヤフー +20 Up 19.8 bn 1,500 +164 Consumer 818.2 ＋19.8 法人 +73 Mobile subscriber increase 1,000 500 Smartphone subs +2.05 mil ARPU improvement ¥ +60 0 FY2018 2018年度 2019年度 (Notes) ARPU：average revenue per subscriber per month (annual averag
Slide 67: Operating Income (YoY): Enterprise and Distribution
Operating Income (YoY) [JPY bn] 2,000 その他 +481 7,951 Enterprise and Distribution Distribution ヤフー 1,500 Consumer +2.0 +164 Up 9.2 bn 818.2 ＋19.8 Enterprise +7.3 Business solutions 1,000 contributed to profit Distribution Demand for PC replacement 500 Enterprise Mobile subscriber increase Some of bus
Slide 68: Operating Income (YoY): Yahoo
Operating Income (YoY) [JPY bn] 2,000 その他 +481 7,951 Yahoo Distribution Yahoo Up 16.4 bn 1,500 +2.0 +16.4 Consumer 818.2 ＋19.8 Enterprise +7.3 Commerce expansion 1,000 *1 500 Commerce +24.9 (impact from ZOZO +8.9) 0 FY2018 2018年度 2019年度 *1 refer to a year-on-year increase in Commerce Business in (Po
Slide 69: Operating Income (YoY): Other
Operating Income (YoY) [JPY bn] 2,000 Other +48.1 7,951 Other Distribution Yahoo Up 48.1 bn 1,500 +2.0 +16.4 Consumer 818.2 ＋19.8 Enterprise +7.3 Temporary factors including PayPay 1,000 500 PayPay accounted for as equity method +29.8 Cybereason evaluation gain +11.9 Growth from settlement service b
Slide 70: Operating Income (YoY)
Operating Income (YoY) 911.7 [JPY bn] 2,000 Other +48.1 Distribution Yahoo 1,500 +2.0 +16.4 Consumer All segments contributed 818.2 ＋19.8 Enterprise to growth +7.3 Up 11% 1,000 500 0 FY2018 2018年度 FY2019 2019年度 (Post ZHD Adj) 69
Slide 71: Equity Method Investments
Equity Method Investments 70
Slide 72: P/L for Investments Using Equity Method
P/L for Investments Using Equity Method [JPY bn] FY2018 FY2019 (Post ZHD Adj) Upfront expenditures increased for -16.3 Shares of profit/losses future growth of associates accounted for Gains on sales of using equity equity method investments/impa (New businesses including PayPay) method irment loss
Slide 73: SoftBank New Business Fields
SoftBank New Business Fields Providing new value to society 72
Slide 74: New Business Fields FY2019 Initiatives
New Business Fields FY2019 Initiatives Focus on portfolio optimization of new businesses Concentrated investment in Entering growth markets expanding businesses Aggressive investment in PayPay Digital marketing Established AI map services No. 1 position in AI image authentication smartphone payments
Slide 75: PayPay
Smartphone Payment Service PayPay 74
Slide 76: PayPay Cumulative Registered Users
PayPay Cumulative Registered Users Government [Mil] Consumer 2,500 2.5 Return* / Convenient PayPay Maintain a high growth rate 2,000 1,500 1.5 JPY10bn Give out Second JPY10bn campaign Exceeded 28 mil 1,000 campaign (April 2020) 0.5 500 (Source) Data by PayPay Corporation, collected from October 5, 2
Slide 77: PayPay Number of Payments
PayPay Cumulative number of payments *1 Number 4 of Payments per Quarter 375 1,000+ mil [Mil] 3 300 Number of Payments 2 200 17 times in one year 1 100 21.6 0 Q3 Q4 Q1 Q2 Q3 Q4 FY2018 FY2019 (Source) Data by PayPay Corporation *1 as of May 9, 2020 76
Slide 78: PayPay Number of Merchants
PayPay Number of Merchants 2.15 200 [Mil] Number of Merchants 150 1.5 100 1.0 Exceeded 2 mil locations nationwide 0.5 50 0.5 0 2018年度 Q3 Q4 19年度 Q1 Q2 Q3 Q4 (Source) Data by PayPay Corporation FY2018 Q3 FY2019 Q1 (Note) Number of merchants: number of applications to PayPay, including shops, taxies,
Slide 79: PayPay: full-scale entry into financial services
PayPay To establish a revenue model with full-scale entry into financial services Personal loan Business loan Postpay (revolving payment) Investment Insurance 78
Slide 80: PayPay Started trials for Postpay and Investment services
PayPay Started trials for Postpay and Investment services PayPay Postpay Investment with PayPay Bonus Users can shop using The payable amount Started a trial investment service PayPay even if they do will be collected in using PayPay bonus not have a PayPay the following month balance Plan to provid
Slide 81: PayPay evolving to Super App
PayPay evolving to “Super App” by strengthening financial services Off-line Utility bills/Tax On-line/O2O Convenience Barber shop EC Movie store reservation Tax Utilities Phone bill Orders/ Taxi Retail store Food stand Booking Hotel Ticket Pharmacy Restaurant Flight tickets Financial Services P2P/So
Slide 82: DiDi
AI-enabled Taxi-hailing Platform DiDi Case studies presented herein are for illustrative purposes only, have been selected in order to provide examples of the types of investments made by SBIA and do not purport to be a complete list thereof. It should not be assumed that investments made in the fut
Slide 83: DiDi Service Areas
DiDi Service Areas Rapid 25 prefectures expansion (As of March 31, 2020) in FY2019 (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 recommend
Slide 84: DiDi Number of Taxi Partners
DiDi 563 Number of Taxi Partners 500 [# of companies] Number of taxi partners 432 11 times 400 300 295 in one year 200 171 100 49 0 (Source) DiDi Mobility Japan (Note) Number of taxi partners refers to the number of taxi companies that Mar3月 2019 6月 Jun 9月 Sep 12月 Dec Mar3月 2020 have signed on membe
Slide 85: DiDi Number of Taxi Trips
DiDi Number of Taxi Trips 60000 [# of taxi trips] Number of taxi trips 8 times 50000 40000 in one year 30000 20000 10000 (Source) DiDi Mobility Japan 0 (Note) Number of taxi trips: number of trips that taxi hailing is completed via DiDi platform. Q3 Q4 Q1 Q2 Q3 Q4 The information contained herein is
Slide 86: DiDi Taxi Partner Revenue Impact
DiDi Taxi Partner Revenue Impact Compared with revenue in January 2020 Using DiDi results in 0% small revenue impact -6% DiDi mitigated 0% impact of “stay-at- -13% home” request Japan’s taxi industry average Gaining orders through DiDi app -27% mitigated business decline due to lower Nearly 30% reve
Slide 87: DiDi infection prevention measures
DiDi Supporting safe travels with infection prevention measures Encourage cashless payment Provide health info in app Display infection Reducing cash transactions prevention info Preventing spread within app of infections in such as drivers’ mask usage and/or health checks taxi cabs Currently 70% of
Slide 88: WeWork
SBG and SVF1 investment Community Centric Workspace WeWork Case studies presented herein are for illustrative purposes only, have been selected in order to provide examples of the types of investments made by SBIA and do not purport to be a complete list thereof. It should not be assumed that invest
Slide 89: WeWork Japan Membership
WeWork Japan Membership in Japan 22,000+ [# of memberships] 20,000 20,000 Membership 10,000 15,000 1.8 times in one year 10,000 5,000 0 0 (Source) Provided by WeWork Japan 18年 2018年 Mar Jun Sep Dec 19年 Mar Jun Sep Dec 20年 Mar (Note) Memberships at the beginning of each month The information herein i
Slide 90: WeWork Japan Tokyo area
WeWork Japan Tokyo area (represents c.70% of total desks nationwide) Tokyo Ikebukuro metropolitan area Area average Yotsuya Jimbocho Kanda Wide-range deployment in Hanzomon Marunouchi Shinjuku occupancy rate Hibiya Nihonbashi Tokyo area with 80%+ Nogizaka Toranomon Kyobashi Omotesando Ginza Shibuya
Slide 91: WeWork Japan: aim for monthly break-even during FY2020
WeWork Japan Aim for monthly break-even during FY2020 “Work Style Reform” entering new era Supporting diversified office demand Office HQ Home WeWork Fukuoka Ikebukuro Kanda Nagoya • Distributed offices Shinjuku Marunouchi • Utilization for projects Osaka Shibuya Ginza • Space and cost reduction 90
Slide 92: OYO Hotels
Innovative Hotel Service OYO Hotels Case studies presented herein are for illustrative purposes only, have been selected in order to provide examples of the types of investments made by SBIA and do not purport to be a complete list thereof. It should not be assumed that investments made in the futur
Slide 93: OYO Hotels Japan Number of Hotel Rooms
OYO Hotels Japan Number of Hotel Rooms 6,000 5,857 [# of rooms] Revamp 4,000 Growth 2,000 Strategy Establishing a community-based OYO brand at affordable prices 0 (Source) Provided by OYO Hotels Japan (Note) Number of Hotel Rooms: Hotel rooms opened under OYO brand Apr Jun Sep Dec Mar The informatio
Slide 94: OYO Hotels Japan Average Occupancy Rates
OYO Hotels Japan Average Occupancy Rates (Jan to Mar) OYO Hotel 62% Even with uncertainty over COVID-19 59% 51% Occupancy rates 54% 53% remained stable relative to market average Japan Hotel Average 32% (Source) Japan hotel average occupancy rate：Overnight Travel Statics Survey by Japan Tourism Agen
Slide 95: OYO Hotels Japan COVID-19 Support Programs
OYO Hotels Japan Implementation of COVID-19 Support Programs For Hotel Owners For Medical Personnel #CareforCare ** *1 *2 Working capital support Free accommodation (Source) OYO Hotel Japan *1 OYO Hotels pays one-time support capital to hotels in Japan that join OYO on and after March 13, 2020. This
Slide 96: Cybereason
Cyber Security Platform Cybereason 95
Slide 97: Cybereason
Cybereason Japan-based Enterprise Endpoint Security Solution Implementations (partial) No.1 EDR share in Japan (Source) Cybereason Japan Corp. (Note) EDR stands for Endpoint Detection and Response, and the EDR platform is an endpoint security solution built for enhanced endpoint monitoring and used
Slide 98: Cybereason Number of Active Endpoints
Cybereason Number of Active Endpoints 1,400,000 1+ mil [IDs] 1,200,000 1,000,000 Number of Active Endpoints Doubled 800,000 600,000 400,000 in FY2019 200,000 0 2016年度 FY2016 17年度 FY2017 18年度 FY2018 19年度 FY2019 (Source) Cybereason Japan Corp. 97
Slide 99: Cybereason Number of Orders per Month
Cybereason Number of Orders per Month Rising remote working trend is leading to expanding security solution needs [# of orders] Cybereason orders from March Surge Sales of security products of SoftBank increased Communication Multi-factor encryption authentication Remote Access Gateway PKI certifica
Slide 100: Net Income
Net Income [JPY bn] 462.5 473.1 4,500 430.8 ZHD impact Even with extraordinary factors 4,000 3,500 31.7 3,000 2,500 Record high 2,000 1,500 Main extraordinary factors Recording of income tax -19.5 1,000 related to LINE business integration (Q3) Loss on valuation and Impairment (Q4) -8.7 500 (Notes)
Slide 101: FY2019 Consolidated Results
FY2019 Consolidated Results [JPY bn] FY2018 FY2018 YoY YoY % (Prior to ZHD adj) (Post ZHD adj) FY2019 (vs Post ZHD (vs Post ZHD adj) adj) Revenue 3,746.3 4,656.8 4,861.2 +204.4 +4% Adj. EBITDA 1,209.8 1,367.1 1,606.5 +239.5 +18% Operating Income 719.5 818.2 911.7 +93.5 +11% Net Income 430.8 462.5 47
Slide 102: CAPEX (Acceptance Basis)
CAPEX (Acceptance Basis) [JPY bn] 381.6 369.8 3,500 350.1 3,000 Even with 5G investment drive 2,500 Maintained level of 2,000 1,500 380 bn 1,000 500 0 2017年度 FY2017 2018年度 FY2018 2019年度 FY2019 (Note) Excluding ZHD, device for rental service, and impact from adopting IFRS 16. 101
Slide 103: Adjusted Free Cash Flow
Adjusted Free Cash Flow [JPY bn] 512.0 524.2 5,000 508.0 4,000 Maintained level of 3,000 500 bn excluding ZHD and impact from adopting IFRS16 2,000 1,000 0 (Note) Adjusted free cash flow = free cash flow ± total cash flows relating to non- 2017年度 FY2017 2018年度 FY2018 2019年度 FY2019 recurring transact
Slide 104: Dividend Per Share
Dividend Per Share [JPY] Annual 85 80 Annual 75* 70 As planned 60 50 40 30 Annual 85 (Up 10 YoY) (Forecast) 20 Year-end 10 37.5 0 FY2018 FY2019 *In FY2018, SoftBank Corp. paid a half-year dividend of ¥37.50 per share 2018年度 2019年度 (which converts to a dividend of ¥75.00 per share if calculated on a
Slide 105: FY2020 Forecast
FY2020 Forecast (Excluding impact from LINE business integration) 104
Slide 106: Continue to increase both profits and dividends
Even with impact from COVID-19 Continue to increase both profits and dividends 105
Slide 107: FY2020 Management Policy
FY2020 Management Policy Telecom Yahoo New businesses Smartphone e-Commerce Monetization for subscriber growth growth expanding business Growth Active 5G Financial business (PayPay, DiDi, etc.) Strategy deployment expansion Creation of new Promotion of DX businesses Business integration for enterpri
Slide 108: Business Impact from COVID-19
Business Impact from COVID-19 Telecom Yahoo Ad placements (certain industries) decrease Negative Shop traffic decrease Travel and restaurant business usage decrease Number of Subscription Immaterial remain stable remain stable subscribers services Additional Data traffic increase e-Commerce sales in
Slide 109: Revenue forecast
Revenue [JPY bn] 4,861.2 4,900.0 4,656.8 5,000.0 4,500.0 4,000.0 3,500.0 FY2020 Forecast 4.9 tn 3,000.0 2,500.0 2,000.0 (Up 1% YoY) 1,500.0 1,000.0 500.0 0.0 (Notes) FY2018 FY2019 FY2020 Actuals for FY2018 have been adjusted retrospectively to have consolidated Actual Actual Forecast ZHD from April
Slide 110: Operating Income forecast
Operating Income [JPY bn] 920.0 911.7 900.0 818.2 800.0 700.0 FY2020 Forecast 600.0 500.0 400.0 920 bn 300.0 (Up 1% YoY) 200.0 100.0 0.0 (Notes) Actuals for FY2018 have been adjusted retrospectively to have consolidated FY2018 2018年度実績 FY2019 19年度実績 FY2020 20年度予想 ZHD from April 1, 2018. The financia
Slide 111: Net Income forecast
Net Income [JPY bn] 485.0 462.5 473.1 450.0 FY2020 Forecast 400.0 350.0 485 bn 300.0 250.0 200.0 150.0 (Up 3% YoY) 100.0 50.0 0.0 (Notes) Actuals for FY2018 have been adjusted retrospectively to have consolidated FY2018 2018年度実績 FY2019 19年度実績 FY2020 20年度予想 ZHD from April 1, 2018. The financial impac
Slide 112: FY2020 Forecast
FY2020 Forecast [JPY bn] FY2019 FY2020 Change Change% Actual Forecast (YoY) (YoY) Revenue 4,861.2 4,900.0 +38.8 +1% Adj. EBITDA 1,606.5 1,630.0 +23.5 +1% Operating Income 911.7 920.0 +8.3 +1% Net Income 473.1 485.0 +11.9 +3% Adj. Free Cash Flow 524.2 550.0 +25.8 +5% Adjusted EBITDA = operating incom
Slide 113: Dividend Per Share
Dividend Per Share [JPY] Annual 85 Annual 86 Annual 75* 80.0 70.0 60.0 Continue to 50.0 40.0 increase 30.0 dividend 20.0 Year-end 37.5 10.0 0.0 FY2018 FY2019 FY2020 *In FY2018, SoftBank Corp. paid a half-year dividend of ¥37.50 per share Actual Actual Forecast (which converts to a dividend of ¥75.00
Slide 114: Summary
Summary FY2019 Achieved increases in revenue and profits across segments Increased ¥10 (forecast) for dividend per share Number of smartphone subscribers increased 2.05 mil FY2020 Continue to increase both profits and dividends Telecom business has immaterial impact from COVID-19 whereas uncertainty
Slide 115: SoftBank
SoftBank