SoftBank Group Corp. · TSE:9984
SoftBank — Q3 FY2010 Earnings Presentation
78 slides from SoftBank's earnings presentation, Feb 4, 2011
Slide 1: Earnings Results for the Nine-month Period Ended December 31, 2010
Earnings Results for the Nine-month Period Ended December 31, 2010 (April to December 2010) Analyst Meeting February 4, 2011 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: Accounting, Finance, Operation
Accounting 4 Consolidated P/L Analysis 5 Consolidated B/S Analysis 15 Consolidated CF Analysis 25 Finance 29 Operation 53 Broadband Infrastructure Segment 55 Fixed-line Telecommunications Segment 59 Mobile Communications Segment 63 3
Slide 4: Accounting
Accounting Kazuko Kimiwada General Manager Accounting, Internal Control SOFTBANK CORP. 4
Slide 5: Consolidated P/L Analysis
Accounting Consolidated P/L Analysis 5
Slide 6: Consolidated P/L Summary
Consolidated P/L Summary <bn JPY> Net Sales Operating Income Ordinary Income Net Income 3,000 600 2,763.4 +10.0% +31.6% Q4 +42.2% 718.1 500 465.8 482.1 399.9 2,249.9 2,045.3 340.9 2,000 99.5 400 166.6 146.0 Q3 784.8 366.3 59.8 696.0 281.1 300 135.6 107.6 Q2 158.9 126.9 764.1 +50.0% 1,000 682.9 200 1
Slide 7: Consolidated Net Sales
Consolidated Net Sales <bn JPY> 2,249.9 Mobile Communications +194.3bn - Increase in telecom service revenue +111.7bn 2,045.3 Increase in subscribers +71.3bn +204.5 Increase in ARPU +35.7bn -Increase in revenue from sales of mobile (+10.0%) handsets and accessories +85.7bn 1,458.6 Broadband Infrastr
Slide 8: Consolidated Operating Income
Consolidated Operating Income 482.1 <bn JPY> Mobile Communications +99.3bn - Increase in net sales +194.3bn - Increase in COS, SGA -94.9bn (main factors for the change) Increase in COS on the increase in the number of handsets shipped +115.8 Decrease in depreciation mainly as a result of 2G service
Slide 9: Non-operating Income/Expense and Ordinary Income
Non-operating Income/Expense and Ordinary Income <bn JPY> Non-operating Income/Expense Ordinary Income Increase in Net of increase FY10/Q1-3 Non-operating income operating in Non-operating Ordinary Non-operating expense excluding interest expense income Income/Expense income Interest expense Non-ope
Slide 10: Special Income/Loss and Income Before Income Taxes
Special Income/Loss and Income Before Income Taxes < bn JPY> Special Income/Loss Income Before Income Taxes and Minority Interests Special Income FY10/Q1-3 Net of increase Special loss in special Income before Valuation loss on option Increase in income/loss income taxes Loss on adjustment for chang
Slide 11: Net Income
Net Income Net Income <bn JPY> A Income taxes: correction The income taxes: correction was recorded in Income taxes: current response to a correction and ruling notice 125.1 received by Yahoo Japan Corporation from the Tokyo Regional Taxation Bureau on B June 30, 2010. Income before 26.4 C income ta
Slide 12: Tax and Other Adjustments
Tax and Other Adjustments FY10/Q1-3 Main Breakdown of Tax Expenses < bn JPY> A Income taxes: current 125.1 (main breakdown) 1. Yahoo Japan 40.7 2. SBM local taxes (out of scope for BBM consolidated tax return) 28.0 3. BBM income taxes under consolidated tax return 43.1 (all loss carryforwards fully
Slide 13: Difference in Tax Rate & Loss Carryforwards (ref.)
Difference in Tax Rate & Loss Carryforwards (ref.) FY10/Q1-3 Reconciliation Between Statutory Tax Rate and Effective Tax Rate Rate (%) <ref.> Amount (bn JPY) Income before income tax 384.6 Statutory income tax rate 40.7% 156.4 (main factors of difference) ・Change in valuation allowance 0.6% 2.2 ・ Am
Slide 14: Scope of Consolidation/Scope of Equity Method
Scope of Consolidation/Scope of Equity Method Number of Name of Core Companies Companies SOFTBANK MOBILE, SOFTBANK BB, SOFTBANK TELECOM, Yahoo Japan, Consolidated subsidiaries 116 SOFTBANK TECHNOLOGY, ITmedia, SOFTBANK Holdings Inc., etc. Newly consolidated subsidiaries 11 * Impacts by the changes i
Slide 15: Consolidated B/S Analysis
Accounting Consolidated B/S Analysis 15
Slide 16: Consolidated B/S Summary
Consolidated B/S Summary SBM Others <bn JPY> Current Assets Current Liabilities 1,694.4 1,684.5 1,533.0 1,378.8 1,093.8 892.8 630.8 768.5 600.6 791.6 610.2 902.1 Mar 2010 Dec 2010 Mar 2010 Dec 2010 Fixed Assets Long-term Liabilities 2,766.4 2,689.1 2,120.0 2,027.2 1,850.0 1,873.3 1,426.4 1,074.2 916
Slide 17: Consolidated B/S (1) Current Assets
Consolidated B/S (1) Current Assets <bn JPY> Assets Mar 2010 Dec 2010 Variance Outline Current assets 1,694.4 1,684.5 -9.9 SBM 1,093.8 892.8 -200.9 Others 600.6 791.6 191.0 Cash and deposits 690.0 708.7 18.7 Increase provided by operating activities (+403.0), repayment of SBM loan（-179.5) Securitiza
Slide 18: Consolidated B/S (2) Tangible Assets
Consolidated B/S (2) Tangible Assets <bn JPY> Assets Mar 2010 Dec 2010 Variance Outline Fixed assets 2,766.4 2,689.1 -77.3 SBM 1,850.0 1,873.3 23.2 Others 916.4 815.8 -100.5 Property and equipment, net 950.7 1,028.3 77.6 SBM 660.0 731.3 71.2 Others 290.6 297.0 6.4 Building and structures 68.1 73.3 5
Slide 19: Consolidated B/S (3) Intangible Assets
Consolidated B/S (3) Intangible Assets <bn JPY> Assets Mar 2010 Dec 2010 Variance Outline Fixed assets 2,766.4 2,689.1 -77.3 Intangible assets, net 1,152.3 1,121.6 -30.7 SBM 1,021.3 1,000.5 -20.7 Others 131.0 121.1 -9.9 Goodwill 900.7 854.7 -46.0 SBM 827.1 788.5 -38.5 Decrease due to regular amortiz
Slide 20: Consolidated B/S (4) Current Liabilities
Consolidated B/S (4) Current Liabilities <bn JPY> Liabilities Mar 2010 Dec 2010 Variance Outline Long-term liabilities 1,378.8 1,533.0 154.1 SBM 768.5 630.8 -137.7 Others 610.2 902.1 291.8 Accounts payable-trade 158.9 161.5 2.5 SBM 93.1 108.6 15.5 SBB: Mar 10 (43.4) >> Dec 10 (35.7) Others 65.8 52.8
Slide 21: Consolidated B/S (5) Long-term Liabilities
Consolidated B/S (5) Long-term Liabilities <bn JPY> Liabilities Mar 2010 Dec 2010 Variance Outline Long-term liabilities 2,120.0 2,027.2 -92.8 SBM 1,426.4 1,074.2 -352.1 Others 693.5 952.9 259.3 Corporate bonds 448.5 452.3 3.8 SBM - - - SB Non-consolidated: 31st, 32nd, 33rd Unsecured Straight Corpor
Slide 22: Consolidated B/S (6) Equity
Consolidated B/S (6) Equity <bn JPY> Equity Mar 2010 Dec 2010 Variance Outline Equity 963.9 814.8 -149.1 Shareholders’ equity 444.6 576.0 131.3 Common stock 188.7 188.7 0.0 Additional paid-in capital 213.0 212.6 -0.4 Accumulated deficit/retained earnings 43.0 174.8 131.7 Net income (+142.2), dividen
Slide 23: [Equity] Foreign Currency Translation Adjustments
[Equity] Foreign Currency Translation Adjustments <bn JPY> 60 Foreign currency translation adjustments account 40 20 35.9 30.6 25.6 7.4 4.4 3.4 0 -25.7 -30.5 -21.8 -31.6 -20 -34.4 -32.5 -36.7 -45.2 -40 -51.4 -60 Jun 07 Sep Dec Mar Jun Sep Dec Mar Jun Sep Dec Mar Jun Sep Dec 08 09 10 <Ref> Main excha
Slide 24: [Equity] Shareholders' Equity
[Equity] Shareholders’ Equity Common stock & additional paid-in capital* Accumulated deficit/retained earnings Treasury stock Unrealized gain on available-for-sale securities Deferred gain (loss) on derivatives under hedge accounting Foreign currency translation adjustments * Including cash receipts
Slide 25: Consolidated CF Analysis
Accounting Consolidated CF Analysis 25
Slide 26: Consolidated Cash Flow Main Breakdown
26 <bn JPY> Dec 10 Cash and cash equivalents at the 706.4 end of the period -212.5 Payments for repurchase of Acquisition of Preferred Stock, etc. Issued (recorded as long-term accounts payable) Minority interests and long-tem debt Payment of additional -75.0 entrustment for debt assumption -113.3 2
Slide 27: Consolidated Earnings Forecast
Consolidated Earnings Forecast <bn JPY> Operating Income 700 (After upward revision on Feb 3) 600.0 600 (initial forecast) 500 465.8 500.0 (full-year) 482.1 359.1 Q4 (Q1-3) 400 (full-year) (actual) Q4 366.3 300 (Q1-3) 274.6 200 (Q1-3) 100 0 (actual) (actual) (forecast) 27
Slide 28: Finance
wm OOftBank
Slide 29: Finance
Finance Yoshimitsu Goto General Manager Finance SOFTBANK CORP. 29
Slide 30: Main Financing Activities of FY2010
Main Financing Activities of FY2010 <Main Financing Activities> <bn JPY> Date Content Amount 2010 June Issue 31st Unsecured Straight Corporate Bond 25.0bn June Issue 32nd Unsecured Straight Corporate Bond 25.0bn Issue 33rd Unsecured Straight Corporate Bond Sep 130.0bn (Fukuoka SoftBank HAWKS Bond) S
Slide 31: EBITDA and EBITDA Margin (by segment)
EBITDA and EBITDA Margin (by segment) Consolidated EBITDA margin exceeded 30%. Consolidated EBITDA EBITDA Margin <bn JPY> Mobile Communications Fixed-line Telecommunications 60% Internet BB Infrastructure 57% Culture 800 Internet Culture 54% Other 700.5 50% 700 601.2 600 40% Broadband Infrastructu
Slide 32: Interest-bearing Debt (by procurement method)
Interest-bearing Debt (by procurement method) <bn JPY> Securitization of installment sales receivables obligations 2,500 2,392.0 2,348.3 2,288.1 2,320.6 SBM loan 2,195.4 231.9 221.6 2,111.2 123.6 2,143.2 222.3 219.8 82.5 Vodafone subordinate loan 2,000 174.1 880.7 Yahoo Japan borrowings 780.1 1,154.
Slide 33: Lease Obligations
Lease Obligations Lease balance remains stable. <bn JPY> 800 Finance leases (accounted for as operating lease transactions)* 600 Finance leases (lease obligations) 436.1 437.7 439.8 421.7 414.1 381.2 389.0 400 105.6 133.4 121.4 112.8 98.0 91.0 84.3 200 302.7 316.3 308.8 334.2 316.0 304.7 290.2 0 J
Slide 34: Cash Position
Cash Position Sustain abundant cash position. <bn JPY> 1,000 977.5 112.0 795.3 830.2 800 720.7 720.8 723.3 117.0 101.0 141.0 111.0 111.0 Unused portion of credit 600 line facility 537.8 51.0 Cash and deposits, and 865.5 marketable securities 400 694.3 713.2 579.7 609.8 612.3 486.8 200 0 Jun 09 Sep
Slide 35: Net Interest-bearing Debt
Net Interest-bearing Debt Steady reduction of approx. JPY 250.0bn YoY. <bn JPY> 2,000 1,905.1 1,768.5 1,678.2 1,501.0 1,498.8 1,455.0 1,429.9 1,500 1,000 500 0 Jun 09 Sep Dec Mar 10 Jun Sep Dec Note: 1. Net interest-bearing debt = interest-bearing debt - cash position. 2. Interest-bearing debt: sh
Slide 36: Interest-bearing Debt Long/Short and Fixed/Variable Ratio Trend
Interest-bearing Debt Long/Short and Fixed/Variable Ratio Trend Interest-bearing Debt Interest-bearing Debt Long/Short Ratio Fixed/Variable Ratio <bn JPY> <bn JPY> Long-term Short-term Fixed Variable 100% 100% 285.5 90% 476.8 378.2 602.6 520.2 695.5 80% 80% 70% 60% 60% 50% 40% 1,811.3 40% 2,054.0 2,
Slide 37: Credit Spread
Credit Spread CDS Bond Spread 26th Unsecured Straight (bp) (bp) Corporate Bond SOFTBANK CDS (5 years) (3.4years remaining) 2,000 28th Unsecured Straight 26th Unsecured Straight 500 Corporate Bond Corporate Bond (1.5 years remaining) (3.4 years remaining) 30th Unsecured Straight Corporate Bond 1,500
Slide 38: Procurement by Corporate Bonds (Apr 2010 - Jan 2011)
Procurement by Corporate Bonds (Apr 2010 - Jan 2011） Procured JPY 235.0bn in total. Targeted Interest Term to Date Content Amount Investors Rate/ p.a. Maturity Issue 31st Unsecured 2010 June Institutional JPY 25.0bn 1.17% 3 years Straight Corporate Bond Issue 32nd Unsecured June Institutional JPY
Slide 39: Bond Redemption Schedule
Bond Redemption Schedule Sustain sufficient repayment resources. Repayment Capability Corporate Bonds Redemption Schedule Unused portion of credit line facility Cash and cash deposits, and marketable securities SB straight bond <bn JPY> SB convertible bond 1,000 SBTM straight bond 830.2 800 795.3
Slide 40: Outstanding Balance of SBM Loan
Outstanding Balance of SBM Loan <bn JPY> 1,400 JPY 1.366t 1,200 Reduction of 1,000 approx. JPY 620.0bn 800 600 JPY 745.5bn (Jan 2011) 400 Minimum case 200 0 Inception 2008 Inception of 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 (CY) of borrowings borrowings (Nov 2006) (Nov 2006) Note: SBM Loa
Slide 41: Outstanding Balance of SBM Loan
Outstanding Balance of SBM Loan Approx. JPY 100.0bn was repaid in Oct . <bn JPY> <times> 1,400 1,342.1 1,295.0 5.0 Mobile 1,261.9 1,207.7 Communications 1,200 1,154.1 1,088.9 4.0 leverage ratio 3.9 1,000 3.7 912.7 3.0 1.4 times 780.1 800 745.5 (Dec 2010) 2.7 600 2.0 Net interest-bearing 400 debt b
Slide 42: Acquisition of Preferred Stock, etc. Issued by BBM (1)
Acquisition of Preferred Stock, etc. Issued by BBM (1) Completed acquisition of preferred stock and stock acquisition rights issued by BBM. <Overview> JPY 412.5bn in total Acquisition from Vodafone Group* 1) BBM Class 1 preferred stock (Dec 2010) 2) BBM stock acquisition rights 3) Principal and in
Slide 43: Acquisition of Preferred Stock, etc. Issued by BBM (2)
Acquisition of Preferred Stock, etc. Issued by BBM (2) First step toward WBS refinance. Components of WBS debt, etc. (image) SBM Loan SBM Loan JPY 1,366.0bn JPY 745.5bn Subordinated loan Subordinated loan (SBM) JPY 84.5bn (SBM) Acquisition by Preferred stock Preferred stock (BBM) JPY 420.0bn (BBM)
Slide 44: Improve Indexes: (1) Interest-bearing Debt/EBITDA Multiple
Improve Indexes: (1) Interest-bearing Debt/EBITDA Multiple Steady improvement. (Ref.) Net Interest-bearing Debt/EBITDA Interest-bearing Debt/EBITDA Multiple Multiple <times> <times> 8.0 8.0 6.0 6.0 4.8 4.0 4.1 4.0 3.5 4.0 3.3 2.8 2.9 2.3 1.9 2.0 2.0 1.5 0.0 0.0 FY06 FY07 FY08 FY09 FY10/Q1-3 FY06 F
Slide 45: Improve Indexes: (2) Debt/Equity Ratio
Improve Indexes: (2) Debt/Equity Ratio Solid improvement. <times> Debt Equity Ratio <times> Net Debt Equity Ratio 12.0 D/E ratio 12.0 Net D/E ratio D/E ratio (excl. Mobile 10.0 10.0 9.0 Communications) Net D/E ratio (excl. Mobile Communications) 7.6 8.0 8.0 6.6 6.4 5.3 5.2 6.0 6.0 4.7 3.8 3.2 4.0
Slide 46: Improve Indexes: (3) Equity Ratio
Improve Indexes: (3) Equity Ratio Equity ratio recovered to level before acquisition of Mobile Communications business. Equity Ratio (Ref.) Equity Ratio* <bn JPY> <bn JPY> <considering unrealized gain> 2,000 30% 54.5% Shareholders' equity (considering unrealized gain) Shareholders' equity 2,000 1,
Slide 47: Trend of Credit Rating of SOFTBANK
Trend of Credit Rating of SOFTBANK A/A2 A/A3 JCR (BBB+) BBB+/Baa1 BBB/Baa2 BBB/Baa3 S&P (BB+) BB+/Ba1 BB/Ba2 BB/Ba3 Moody’s (Ba2) B+/B1 Acquisition of Acquisition of JAPAN TELECOM Vodafone K.K. (CY) 2003 2004 2005 2006 2007 2008 2009 2010 2011 47
Slide 48: Trend of Credit Ratings of WBS
Trend of Credit Ratings of WBS JCR (AA-) AA/AA3 A+/A1 Class A S&P (A) A/A2 Moody’s (A3) A/A3 JCR (A-) BBB+/Baa1 S&P (BBB+) Class B BBB/Baa2 BBB/Baa3 Moody’s (Baa3) BB+/Ba1 (CY) 2006 2007 2008 2009 2010 2011 Note: WBS stands for Whole Business Securitization scheme associated with the acquisition of
Slide 49: Net Interest-bearing Debt Reduction Target
Net Interest-bearing Debt Reduction Target <JPY> 2.4t 1.9t 1.43t Half Zero June FY2008 Dec FY2011 FY2014 2006 2010 (target) (target) Note: 1. Net interest-bearing debt = interest-bearing debt - cash position. 2. Interest-bearing debt: short-term borrowings + commercial paper + bonds due for redempti
Slide 50: Commitments Unchanged
Commitments Unchanged Cumulative 3 years FCF*: at least JPY 1t (FY2009-2011) Net Interest-bearing debt* to half (by end of FY2011) Net Interest-bearing debt* to zero (by end of FY2014) No major investments until the achievement of the commitments Notes: 1. Free cash flow (FCF, cash and deposits) = c
Slide 51: Towards "ZERO net interest-bearing debt"
FY2010 Financial Strategies Towards “ZERO net interest-bearing debt” 1. Further strengthening of financial base Thoroughness towards debt reduction through sustained high level FCF. Appropriate distribution of investment CF (CAPEX or investment in business). Improve corporate value as result o
Slide 52: (Reference) Corporate Bond Details
(Reference) Corporate Bond Details <mil JPY> Interest Mar 10 Dec. 10 Company name Bond Issue date Maturity date rate Collateral Change balance balance (%/year) th 24 series Unsecured Straight Bond 2007/4/26 2010/4/26 2.72 None 20,000 ― -20,000 (Fukuoka SoftBank HAWKS bond) nd 22 series Unsecured Str
Slide 53: Operation
Operation Kazuhiko Fujihara Senior Vice President, CFO, Director of the Board SOFTBANK MOBILE Corp. Senior Vice President & CFO, Director SOFTBANK BB Corp. Director SOFTBANK TELECOM Corp. 53
Slide 54: Overview of Telecommunications Businesses
Overview of 3 Telecommunications Businesses Large increase in profit in Mobile Communications led consolidated operating income to reach record high. <bn JPY> Broadband Infrastructure Fixed-line Telecommunications Mobile Communications Operating income YoY SOFTBANK consolidated: +115.8 471.6 Mobil
Slide 55: Broadband Infrastructure Business
Operation Broadband Infrastructure Business 55
Slide 56: Operating Income, EBITDA (Broadband Infrastructure)
Operating Income, EBITDA <BB> Profit decreased YoY. Efforts continued to increase lines. <bn JPY> Operating Income EBITDA 80 80 70.3 70.9 65.2 18.2 16.8 55.6 14.1 52.0 54.1 47.2 48.3 Q4 51.0 47.1 15.7 39.7 9.2 20.1 10.6 39.8 18.5 15.9 40 39.1 40 15.2 9.4 36.6 33.5 30.2 12.1 Q3 15.4 26.8 14.3 10.8
Slide 57: Yahoo! BB ADSL Lines and average payment per charged line
Yahoo! BB ADSL Lines and average payment per changed line <BB> The number of lines of Yahoo! BB hikari with FLET’S increased, leading to a YoY increase of total broadband. ADSL decreased. Average User Payment per Charged Line <k lines> Number of Lines (ADSL) <JPY> Installed lines Installed lines (
Slide 58: CAPEX (acceptance basis)
CAPEX (acceptance basis) <BB> Expect results slightly below the annual plan (no change in SB consolidated plan). <bn JPY> CAPEX and Depreciation & Amortization CAPEX (quarterly trend) 50 47.6 (yearly trend) 25 CAPEX 40 20 Depreciation & amortization (Reference) 30 15 Annual plan 25.1 22.1 21.2 20
Slide 59: Fixed-line Telecommunications
Operation Fixed-line Telecommunications 59
Slide 60: Operating Income, EBITDA (Fixed-line)
Operating Income, EBITDA <Fixed> Sustain trend of profit increase through enhancement of <bn JPY> corporate lines and efficient management. Operating Income/Loss EBITDA 30 75 SOFTBANK IDC impact 67.0 (FY08 total: JPY +2.0bn) Q1: JPY +0.5bn 64.3 25 23.0 23.8 Q2: JPY +0.5bn Q3:JPY +0.5bn 58.2 19.6 2
Slide 61: Number of Lines and ARPU for OTOKU Line
Number of Lines and ARPU for OTOKU Line <Fixed> Sustain number of lines and ARPU on enhancement of corporate lines. <k lines> Number of Lines <JPY> ARPU 1,800 12,000 ■Consumer 1,660 1,670 1,660 Large Corp. Total ■SME (excl. SBTP) 1,600 1,540 ■SME (SBTP) ■Large Corp 10,000 1,400 1,350 1,200 1,140 8
Slide 62: CAPEX (acceptance basis)
CAPEX (acceptance basis) <Fixed> Expect results slightly below the annual plan (no change in SB consolidated plan). <bn JPY> 40 CAPEX and Depreciation & Amortization 150 CAPEX (quarterly trend) (yearly trend) CAPEX 30 Depreciation & amortization 100 82.6 20 (Reference) Annual plan 50 44.9 9.2 9.2
Slide 63: Mobile Communications
Operation Mobile Communications 63
Slide 64: SBM Consolidated Net Sales
SBM Consolidated Net Sales <Mobile> Net sales increased by 15% (large revenue increase both in telecom service and sales of mobile handsets and accessories). SBM Consolidated Net Sales SBM Consolidated Net Sales (Quarterly Comparison) <bn JPY> Telecom service revenue Sales of mobile handsets and a
Slide 65: Operating Income/EBITDA (SB Consolidated)
Operating Income/ EBITDA (SB Consolidated) <Mobile> Revenue and profit increased; operating income increased 46% YoY to reach record high*. Operating Income EBITDA (Mobile Communications Segment) (Mobile Communications Segment) YoY YoY <bn JPY> <bn JPY> +99.3 +79.6 (+46.2%) 504.2 (+20.3%) 500 314.
Slide 66: Number of Subscribers
Number of Subscribers (quarterly net additions/cumulative) <Mobile> Large increase in net additions (monthly average exceeds 300k since Q2). <k subs> Net Additions <mil subs> Cumulative Subscribers 1,000 973 24.40 926 25 901 23.47 2G 3G 21.67 800 20.00 20 697 17.61 633 612 15.50 600 561 15 532 526
Slide 67: Number of Monthly Net Additions
Number of Monthly Net Additions <Mobile> Large increase both in number of net additions (2.4x) and MNP net additions (3.7x). (YoY comparison of the sum of Apr to Dec) <k subs> Net Additions <k subs> Number of MNP Net Additions 350 325 Q1-3 333 324 570k 289 (+414k) 100 251 Q1-3 280 277 250 1,034k 2
Slide 68: Churn Rate & Upgrade Rate
Churn Rate & Upgrade Rate <Mobile> Churn rate improving; less impact from churns after HS installment payments. Upgrade rate decreased YoY. (The both were impacted by 2G termination till FY09.) Churn Rate Upgrade Rate Total 3G postpaid 3.0% 2.0% 2.0% 1.21% 1.16% 2.00% 0.91% 0.91% 1.67% 1.0% 0.99%
Slide 69: Churn Rate Details (FY10/Q3)
Churn Rate Details (FY10/Q3) <Mobile> Churn rate largely varies according to type of history of model changes; the both are improving. Churn Rate of 3G Postpaid (FY10/Q3) <by history of model changes> 2.0% (details) 1.5% 1.32% Churn rate of users who have never changed their SBM handset models 1.0
Slide 70: New Super Bonus Ratio and Installment Sales Receivables Balance
New Super Bonus Ratio and Installment Sales Receivables Balance <Mobile> The balance largely decreased, impacted by the sale of installment sales receivables. New Super Bonus Subscription Ratio Installment Sales Receivables Balance (include Super Bonus) FY09 FY09 FY09 FY10 FY10 FY10 (Ref.) Install
Slide 71: ARPU (Average Revenue Per User)
ARPU (Average Revenue Per User) <Mobile> QoQ: ARPU increased by JPY 10, data ARPU increased by JPY 50. YoY: ARPU increased by JPY 110, data ARPU increased by JPY 270. <JPY> FY06 annual FY07 annual FY08 annual FY09 annual JPY 5,510 JPY 4,650 JPY 4,070 JPY 4,070 6,000 5,560 Basic charge + voice Da
Slide 72: ARPU (Average Revenue Per User) Reference: Monthly Discounts
(Reference) Impact of Monthly Discounts ARPU (Average Revenue Per User) <Mobile> YoY (Monthly Discounts referred to separately) Basic monthly charge plus voice ARPU: JPY -290, data ARPU: JPY +300 impact of Monthly Discounts: JPY +100. (YoY comparison) <JPY> Data Basic charge + voice (before Monthl
Slide 73: ARPU Comparison
ARPU (average telecom service revenue per subscription) Comparison <Mobile> YoY increase continued. <JPY> ARPU YoY Comparison SOFTBANK 200 +JPY 110 (+2.6%) 0 -200 NTT DOCOMO -400 KDDI -600 -800 -1,000 -1,200 06/Q1 Q2 Q3 Q4 07/Q1 Q2 Q3 Q4 08/Q1 Q2 Q3 Q4 09/Q1 Q2 Q3 Q4 10/Q1 Q2 Q3 [FY] Note 1. ARPU:
Slide 74: Average Cash Income Per Subscription
Average Cash Income Per Subscription (including HS installment payment) <Mobile> Cash income per subscription sustains steady trend. Impact from access charge adjustment HS installment payment <JPY> Backup Service Package, etc. 7,000 Basic charge + Voice leap year Data 6,040 5,960 5,930 5,880 6,00
Slide 75: CAPEX (acceptance basis)
CAPEX (acceptance basis) <Mobile> Expect results slightly above the annual plan (no change in SB consolidated plan). Depreciation and amortization decreased due to 2G termination. <bn JPY> CAPEX and Depreciation & Amortization CAPEX (quarterly trend) (yearly trend) CAPEX (Mobile Communications Seg
Slide 76: Improvement in Management Efficiency
Improvement in Management Efficiency <Mobile> Inventory decreased. Allowances sustain steady trend. <bn JPY> SBM Inventory (on B/S) <bn JPY> Allowance for Doubtful Accounts of 70 Installment Receivables and Bad Debt Loss 35 66.0 (on P/L) 60 30.4 30 50 46.2 44.9 25 Q4 10.1 45.9 40 36.5 41.6 20 38
Slide 77: Average Acquisition Cost per Subscriber and Gross Margin from Handsets
Average Acquisition Cost per Subscriber and Gross Margin from Sales of Mobile Handsets and Accessories <Mobile> Average acquisition cost sustains solid trend. SBM Average Acquisition Cost per Subscriber*1 and Gross Margin from Sales of Mobile Handsets and Accessories per Unit*2 <k JPY> *1: Average
Slide 78: Trademark and copyright notice
* The names of other companies, other logos, product names, service names, brands, etc., mentioned in this material are registered trademarks or trademarks of SOFTBANK CORP. or the applicable companies. * Unauthorized copying of this material and use of the information or the data in this material i