Softbank Group Corp. · TSE:9984
Softbank — Q2 FY2010 Earnings Presentation
78 slides from Softbank's earnings presentation, Oct 29, 2010
Slide 1: Earnings Results for the Six-month Period Ended September 30, 2010
Earnings Results for the Six-month Period Ended September 30, 2010 (April to September 2010) Analyst Meeting October 29, 2010 SOFTBANK CORP. November 16, 2010 Version
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 5 Consolidated P/L Analysis 6 Consolidated B/S Analysis 16 Consolidated CF Analysis 26 Finance 30 Operation 53 Broadband Infrastructure Segment 55 Fixed-line Telecommunications Segment 59 Mobile Communications Segment 63 3
Slide 4: wm OOftBank
wm OOftBank
Slide 5: Accounting
Accounting Kazuko Kimiwada General Manager Accounting, Internal Control SOFTBANK CORP. 5
Slide 6: Consolidated P/L Analysis
Accounting Consolidated P/L Analysis 6
Slide 7: Consolidated P/L Summary
Consolidated P/L Summary <bn JPY> Net Sales Operating Income Ordinary Income Net Income 3,000 500 2,763.4 465.8 Q4 718.1 99.5 400 +36.8% 340.9 2,000 Q3 +8.6% 315.5 59.8 +46.3% 300 135.6 696.0 1,465.0 253.8 1,349.2 230.6 158.9 107.6 Q2 200 764.1 173.5 126.9 96.7 1,000 682.9 122.3 94.7 +8.6% 100 1.8 Q
Slide 8: Consolidated Net Sales
Consolidated Net Sales 1,465.0 <bn JPY> 1,349.2 Mobile Communications +107.8bn +115.7 - Increase in telecom service revenue +71.1bn (+8.6%) Increase in subscribers +40.3bn Increase in ARPU +27.8bn -Increase in revenue from sales of mobile handsets and accessories +39.2bn Mobile 940.0 Communications
Slide 9: Consolidated Operating Income
Consolidated Operating Income <bn JPY> Mobile Communications +75.4bn 315.5 - Increase in net sales +107.8bn - Increase in COS, SGA -32.4bn (main factors for the change) +84.8 - Increase in COS on the increase in the number of handsets shipped - Decrease in depreciation mainly as a result of 2G servi
Slide 10: Non-operating Income/Expense and Ordinary Income
Non-operating Income/Expense and Ordinary Income <bn JPY> Non-operating Income/Expense Ordinary Income Non-operating income Non-operating expense (interest expense) Increase in Net of decrease FY10/Q1-2 Non-operating income/expense (NET) operating in Non-operating Ordinary income Income/Expense inco
Slide 11: 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 Special loss Net of （Loss on adjustment for changes of accounting standard for asset retirement obligations） Increase in decrease in Special income/loss (
Slide 12: Net Income
Net Income Net Income <bn JPY> Income taxes: correction A The income taxes: correction was recorded in Income taxes: response to a correction and ruling notice current received by Yahoo Japan Corporation from 95.7 the Tokyo Regional Taxation Bureau on June 30, 2010. B 26.4 Income before C income tax
Slide 13: Tax and Other Adjustments
Tax and Other Adjustments < bn JPY> FY10/Q1-2 Main Breakdown of Tax Expenses A Income taxes: current 95.7 (main breakdown) 1. Yahoo Japan 26.3 2. SBM local taxes (out of scope for BBM consolidated tax return) 21.3 3. BBM income taxes under consolidated tax return 34.7 (all loss carryforwards fully u
Slide 14: Difference in Tax Rate & Loss Carryforwards (ref.)
Difference in Tax Rate & Loss Carryforwards (ref.) FY10/Q1-2 Reconciliation Between Statutory Tax Rate and Effective Tax Rate Rate (%) <ref.> Amount (bn JPY) Income before income taxe 246.5 Statutory income tax rate 40.7% 100.3 (main factors of difference) Change in valuation allowance 0.8% 1.8 Amor
Slide 15: 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 117 SOFTBANK TECHNOLOGY, ITmedia, SOFTBANK Holdings Inc., etc. Newly consolidated subsidiaries 11 * Impacts by the changes i
Slide 16: Consolidated B/S Analysis
Accounting Consolidated B/S Analysis 16
Slide 17: Consolidated B/S Summary
Consolidated B/S Summary SBM Others <bn JPY> Current Assets Current Liabilities 1,694.4 1,851.4 1,378.8 1,430.0 937.7 1,093.8 768.5 583.1 600.6 913.6 610.2 846.9 Mar 2010 Sep 2010 Mar 2010 Sep 2010 Fixed Assets Long-term Liabilities 2,766.4 2,651.3 2,120.0 2,029.6 1,850.0 1,819.2 1,426.4 1,280.7 916
Slide 18: Consolidated B/S (1) Current Assets
Consolidated B/S (1) Current Assets <bn JPY> Assets Mar 2010 Sep 2010 Variance Outline Current assets 1,694.4 1,851.4 156.9 SBM 1,093.8 937.7 -156.0 Others 600.6 913.6 313.0 Cash and deposits 690.0 861.9 171.8 Increase provided by operating activities (+262.4 ) Securitization of installment sales re
Slide 19: Consolidated B/S (2) Tangible Assets
Consolidated B/S (2) Tangible Assets <bn JPY> Assets Mar 2010 Sep 2010 Variance Outline Fixed assets 2,766.4 2,651.3 -115.1 SBM 1,850.0 1,819.2 -30.7 Others 916.4 832.0 -84.3 Property and equipment, net 950.7 963.6 12.9 SBM 660.0 668.4 8.3 Others 290.6 295.2 4.5 Building and structures 68.1 74.4 6.3
Slide 20: Consolidated B/S (3) Intangible Assets
Consolidated B/S (3) Intangible Assets <bn JPY> Assets Mar 2010 Sep 2010 Variance Outline Fixed assets 2,766.4 2,651.3 -115.1 Intangible assets, net 1,152.3 1,125.2 -27.1 SBM 1,021.3 1,001.1 -20.1 Others 131.0 124.0 -6.9 Goodwill 900.7 871.0 -29.7 SBM 827.1 801.4 -25.7 Decrease due to regular amorti
Slide 21: Consolidated B/S (4) Current Liabilities
Consolidated B/S (4) Current Liabilities <bn JPY> Liabilities Mar 2010 Sep 2010 Variance Outline Current liabilities 1,378.8 1,430.0 51.1 SBM 768.5 583.1 -185.4 Others 610.2 846.9 236.6 Accounts payable-trade 158.9 174.7 15.8 SBM 93.1 121.2 28.1 SBB: Mar 10 (43.4) >> Sep 10 (35.1) Others 65.8 53.5 -
Slide 22: Consolidated B/S (5) Long-term Liabilities
Consolidated B/S (5) Long-term Liabilities <bn JPY> Liabilities Mar 2010 Sep 2010 Variance Outline Long-term liabilities 2,120.0 2,029.6 -90.4 SBM 1,426.4 1,280.7 -145.7 Others 693.5 748.9 55.3 Corporate bonds 448.5 467.3 18.8 SBM - - - SB Non-consolidated: 31st, 32nd, 33rd Unsecured Straight Corpor
Slide 23: Consolidated B/S (6) Equity
Consolidated B/S (6) Equity <bn JPY> Equity Mar 2010 Sep 2010 Variance Outline Equity 963.9 1,045.3 81.3 Shareholders’ equity 444.6 510.8 66.1 Common stock 188.7 188.7 0.0 Additional paid-in capital 213.0 212.6 -0.4 Accumulated deficit/retained earnings 43.0 109.6 66.5 Net income (+76.8), dividend (
Slide 24: [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 -20 -25.7 -30.5 -21.8 -31.6 -34.4 -32.5 -36.7 -40 -45.2 -60 Jun 07 Sep Dec Mar 08 Jun Sep Dec Mar 09 Jun Sep Dec Mar 10 Jun Sep <Ref> Main exchange rate t
Slide 25: [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 26: Consolidated CF Analysis
Accounting Consolidated CF Analysis 26
Slide 27: Consolidated Cash Flow Main Breakdown
27 <bn JPY> Sep 10 Cash and cash equivalents at the 859.5 end of the period -84.5 -75.0 Payment of additional entrustment for debt assumption Repayment of lease obligations Sale and lease back of equipment newly 11.7 acquired Consolidated Cash Flow Main Breakdown Financing CF -54.8 Redemption of bon
Slide 28: Consolidated Earnings Forecast
Consolidated Earnings Forecast Operating Income <bn JPY> 600 500.0 (Forecast) 500 465.8 400 359.1 300 200 Q1-2 (Actual) Q1-2 100 Q1-2 0 FY08 FY09 FY10 (actual) (actual) (forecast) 28
Slide 29: wm OOftBank
wm OOftBank
Slide 30: Finance
Finance Yoshimitsu Goto General Manager Finance SOFTBANK CORP. 30
Slide 31: Main Financing Activities of FY2010
Main Financing Activities of FY2010 <Main Financing Activities> Date Content Amount 2010 June Issue 31st Unsecured Straight Corporate Bond JPY 25.0bn June Issue 32nd Unsecured Straight Corporate Bond JPY 25.0bn Issue 33rd Unsecured Straight Corporate Bond Sep (Fukuoka SoftBank HAWKS Bond) JPY 130.0b
Slide 32: EBITDA and EBITDA Margin (by segment)
EBITDA and EBITDA Margin (by segment) Consolidated EBITDA margin grew to 30% level. Consolidated EBITDA EBITDA Margin <bn JPY> Mobile Communications 60% 56% Fixed-line Telecommunications 54% Internet 500 BB Infrastructure 459.3 Culture Internet Culture Other 50% 400 387.1 Mobile 40% Communications
Slide 33: Interest-bearing Debt (by procurement method)
Interest-bearing Debt (by procurement method) <bn JPY> Securitization of installment sales 2,392.0 receivables obligations 2,500 2,348.3 2,288.1 2,320.6 2,195.4 SBM loan 231.9 221.6 2,111.2 123.6 222.3 Vodafone subordinate loan 219.8 2,000 174.1 Yahoo Japan borrowings 880.7 1,154.1 1,118.9 1,500 1,0
Slide 34: Lease Obligations
Lease Obligations Lease balance remains stable. <bn JPY> 800 Finance leases (accounted for as operating lease transactions)* 600 Finance leases (lease obligations) 436.1 437.7 439.8 421.7 414.1 381.2 400 105.6 133.4 121.4 112.8 98.0 91.0 200 302.7 316.3 308.8 334.2 316.0 290.2 0 Jun 09 Sep Dec Mar
Slide 35: Cash Position
Cash Position Sustain abundant cash position. <bn JPY> 1,000 977.5 112.0 795.3 800 720.7 720.8 101.0 723.3 141.0 111.0 111.0 Unused portion of credit 600 line facility 537.8 51.0 Cash and deposits, and 865.5 marketable securities 400 694.3 579.7 609.8 612.3 486.8 200 0 Jun 09 Sep Dec Mar 10 Jun Se
Slide 36: Net Interest-bearing Debt
Net Interest-bearing Debt Steady reduction of approx. JPY 300.0bn YoY. <bn JPY> 2,000 1,905.1 1,768.5 1,678.2 1,501.0 1,498.8 1,455.0 1,500 1,000 500 0 Jun 09 Sep Dec Mar 10 Jun Sep Note: 1. Net interest-bearing debt = interest-bearing debt - cash position. 2. Interest-bearing debt: short-term bor
Slide 37: Interest-bearing Debt Long/Short and Fixed/Variable Ratio Trend
Interest-bearing Debt Long/Short and Fixed/Variable Ratio Trend Ratios remain stable. Interest-bearing Debt Interest-bearing Debt Long/Short Ratio Fixed/Variable Ratio <bn JPY> <bn JPY> Long-term Short-term Fixed Variable 100% 100% 365.3 271.5 511.8 (15%) (12%) 447.0 562.5 (23%) (22%) 663.2 (19%)
Slide 38: Renewal of Credit Line Facility
Renewal of Credit Line Facility Renewed credit line facility to increase its size significantly . Number of participating financial institutions also increased. FY2009 FY2010 Credit line facility size JPY 161.0bn JPY 187.0bn Loan Portion JPY 74.6bn JPY 127.2bn (Term;1yr and 2yrs) Total JPY 235.6bn
Slide 39: Credit Spread
Credit Spread CDS (bp) Bond Spread (bp) 2,200 SOFTBANK CDS (5 years) 26th Unsecured Straight Corporate Bond 500 (3.7years remaining) 2,000 26th Unsecured Straight 28th Unsecured Straight 1,800 Corporate Bond Corporate Bond (3.7 years remaining) (1.8 years remaining) 400 1,600 30th Unsecured Straight
Slide 40: Procurement by Corporate Bonds (Apr-Sep)
Procurement by Corporate Bonds (Apr-Sep Procured JPY 180.0bn in total in Q1-2 under a favorable spread. Targeted Interest Term to Month Content Amount Investors Rate/ p.a. Maturity Issue 31st Unsecured June Institutional JPY 25.0bn 1.17% 3 years Straight Corporate Bond Issue 32nd Unsecured June In
Slide 41: 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> 977.5 SB convertible bond 1,000 SBTM straight bond 112.0 800
Slide 42: Outstanding Balance of SBM Loan
Outstanding Balance of SBM Loan <JPY bn> 1,400 JPY1.366t 1,200 Reduction of 1,000 approx. JPY 590.0bn 800 600 JPY 780.0bn (Oct 2010) 400 Minimum case 200 0 Inceptionof 2008 Inception 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 (CY) of borrowings borrowings (Nov 2006) (Nov 2006) Note: SBM Loan:
Slide 43: Outstanding Balance of SBM Loan
Outstanding Balance of SBM Loan Approx. JPY 100.0bn was repaid in Oct . <times> <bn JPY> 1,400 1,355.0 1,311.4 5.0 Mobile 1,276.4 1,239.2 1,184.8 Communications 1,200 4.5 4.1 1,118.9 Repayment of 4.0 leverage ratio approx. JPY 100.0bn 3.9 1,000 3.9 3.7 959.7 880.7 3.0 1.8 times 780.1 800 (Sep 2010
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 2.5 1.9 1.6 2.0 2.0 0.0 0.0 FY06 FY07 FY08 FY09 FY10/Q1-2 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 4.5 4.0 4.0
Slide 46: Improve Indexes: (3) Equity Ratio
Improve Indexes: (3) Equity Ratio Equity ratio recovered to 11%. 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 1,876.9 Equity ratio (considering unrealized gain) 30% Eq
Slide 47: Trend of Credit Rating of SOFTBANK
Trend of Credit Rating of SOFTBANK AA/AA3 A+/A 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. 2003 2004 2005 2006 2007 2008 2009 2010 CY 47
Slide 48: Trend of Credit Ratings of WBS
Trend of Credit Ratings of WBS JCRAA- AA/AA3 A+/A1 S&P Class A A/A Moody’s3 A/A3 JCRA- BBB+/Baa1 S&PBBB+ BBB/Baa2 Class B Moody’sBaa3 BBB/Baa3 BB+/Ba1 2006 2007 2008 2009 2010 (CY) Note: WBS stands for Whole Business Securitization scheme associated with the acquisition of Vodafone K.K. 48
Slide 49: Net Interest-bearing Debt Reduction Target
Net Interest-bearing Debt Reduction Target <JPY> 2.4t 1.9t 1.45t Half Zero June FY2008 Sep FY11 FY14 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 redemption w
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 Sep 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 Stra
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 <bn JPY> operating income to reach a record high. Broadband Infrastructure Fixed-line Telecommunications Mobile Communications YoY (Operating income) SOFTBANK consolidated: +84.8 (incl. M
Slide 55: Broadband Infrastructure Business
Operation Broadband Infrastructure Business 55
Slide 56: Operating Income, EBITDA
Operating Income, EBITDA <BB> Profit decreased YoY, due to initiatives made to increase the number of lines. <bn JPY> Operating Income EBITDA 80 80 70.3 70.9 65.2 18.2 16.8 55.6 14.1 47.2 48.3 Q4 15.7 39.7 9.2 18.5 20.1 15.9 10.6 40 40 35.1 33.4 33.9 31.9 9.4 12.1 14.3 Q3 15.4 26.8 27.0 11.3 24.4
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, while ADSL decreased. Total recovered to net increase. Average User Payment per Charged Line <k lines> Number of Lines (ADSL) <JPY> Installed Installedlines lines (ADSL) (A
Slide 58: CAPEX [acceptance basis]
CAPEX [acceptance basis] <BB> Planned CAPEX in FY10: JPY 25.1bn (no change). <bn JPY> CAPEX and Depreciation & Amortization CAPEX (quarterly trend) 50 47.6 (yearly trend) 25 40 20 CAPEX Depreciation & amortization (Reference) Annual forecast 30 15 25.1 22.1 21.2 10 20 14.5 5.6 5.3 5.3 5.5 4.3 4.3
Slide 59: Fixed-line Telecommunications
Operation Fixed-line Telecommunications 59
Slide 60: Operating Income, EBITDA
Operating Income, EBITDA <Fixed> Sustain trend of profit increase through enhancement of <bn JPY> corporate lines and efficient management. 30 Operating Income/Loss 75 EBITDA SOFTBANK IDC impact 67.0 (FY08 total: JPY +2.0bn) 64.3 25 Q1: JPY +0.5bn 23.0 Q2: JPY +0.5bn 19.6 20 18.9 18.7 8.6 50 47.9
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 due to enhancement of corporate lines. <k lines> Number of Lines <JPY> ARPU 1,800 12,000 ■Consumer 1,650 1,670 ■SME (excl. SBTP) Large Corp. Total 1,600 1,500 ■SME (SBTP) ■Large Corp 10,000 1,400 1,320 1,200 8,000 1,0
Slide 62: CAPEX [acceptance basis]
CAPEX [acceptance basis] <Fixed> <bn JPY> Planned CAPEX in FY10: JPY 44.9bn (no change). 40 CAPEX and Depreciation & Amortization 150 CAPEX (quarterly trend) (yearly trend) CAPEX 30 Depreciation & amortization 100 82.6 20 (Reference) Annual forecast 44.9 50 9.2 9.2 9.1 9.1 8.9 8.8 8.6 8.8 9.1 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 13% (Large revenue increase both in telecom service and sales of mobile handsets and accessories). SBM Consolidated Net Sales SBM Consolidated Net Sales (Quarterly Comparison) Telecom service revenue Sales of mobile handsets and accessorie
Slide 65: Operating Income/EBITDA (SB Consolidated)
Operating Income/ EBITDA (SB Consolidated) <Mobile> YoY profit increase of 57% (record high*) through achieving a balance between increased sales and efficient management. <bn JPY> Operating Income <bn JPY> EBITDA (Mobile Communications Segment) (Mobile Communications Segment) YoY 260.8 +75.4 YoY
Slide 66: Number of Subscribers (quarterly net additions/cumulative)
Number of Subscribers (quarterly net additions/cumulative) <Mobile> Large increase in net additions (monthly average of 300k in Q2). <k subs> Net Additions <mil subs> Cumulative Subscribers 1,000 973 25 23.47 901 22.57 2G 3G 21.32 21.88 800 20 19.63 697 17.05 633 15.31 612 600 561 15 532 526 521 4
Slide 67: Number of Monthly Net Additions
Number of Monthly Net Additions <Mobile> Large increase both in number of net additions (2.3x) and MNP net additions (4.3x). (YoY comparison of the sum of Apr to Sep) <k subs> Net Additions <k subs> Number of MNP Net Additions 350 333 100 Q1-2 353k 289 80 SOFTBANK 251 Q1-2 250 280 60 216 1,598k Q1
Slide 68: Churn Rate & Upgrade Rate
Churn Rate & Upgrade Rate <Mobile> Churn rate decreased YoY; less impact from churns after HS installment payments. Upgrade rate decreased YoY; without the impact by the upgrades from 2G to 3G. Churn Rate Upgrade Rate Total 3G postpaid 3.0% 2.0% 2.67% 1.42% 1.91% 2.0% 1.81% 1.24% 1.67% 1.02% 0.9
Slide 69: Churn Rate Details (FY10/Q2)
Churn Rate Details (FY10/Q2) <Mobile> Churn rate largely varies according to type of history of model changes. Churn Rate of 3G postpaid (FY10/Q2) <by history of model changes> 2.0% (details) 1.5% 1.44% Churn rate of users who have never changed their SBM handset models 1.0% 0.92% (many of them ar
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 (Ref.) Installment
Slide 71: ARPU (Average Revenue Per User)
ARPU (Average Revenue Per User) <Mobile> QoQ: ARPU increased by JPY 10, data ARPU increased by JPY 30. YoY: ARPU increased by JPY 150, data ARPU increased by JPY 300. <JPY> FY06 annual FY07 annual FY08 annual FY09 annual JPY 5,510 JPY 4,650 JPY 4,070 JPY 4,070 6,000 5,700 Inpact from access char
Slide 72: ARPU (Average Revenue Per User)
(Reference) Impact of Monthly Discounts ARPU (Average Revenue Per User) <Mobile> YoY (Monthly Discounts referred to separately) Basic monthly charge plus voice ARPU: JPY-270, data ARPU: + JPY 310 impact of Monthly Discounts: JPY-110. (YoY comparison) <JPY> YoY Data Basic charge + voice (before Mon
Slide 73: ARPU Comparison
ARPU (average telecom service revenue per subscription) Comparison <Mobile> YOY increase continues. <JPY> ARPU YoY Comparison SOFTBANK 200 +JPY 150 (+3.6%) 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 [FY] Note 1. ARPU: Av
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 5,990 5,980 5,950 5,930 6,00
Slide 75: CAPEX (acceptance basis)
CAPEX (acceptance basis) <Mobile> Planned CAPEX in FY10: JPY 314.8bn (no change). <bn JPY> Depreciation and amortization decreased due to 2G termination. CAPEX and Depreciation & Amortization CAPEX (quarterly trend) (yearly trend) 100 CAPEX (Mobile Communications Segment) 400 (Reference) Annual fo
Slide 76: Improvement in Management Efficiency
Improvement in Management Efficiency <Mobile> Inventory increased temporarily. 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.
Slide 77: Average Acquisition Cost per Subscriber and Gross Margin from Handset Sales
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 *1: Average acquisi
Slide 78: * The names of other companies, other logos, product names, service names, brands, etc.,
* 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