Slide 1: Earnings Results for the Three-month Period Ended June 30, 2009
Earnings Results for the Three-month Period Ended June 30, 2009 (FY2009/Q1) Analyst Meeting July 31, 2009 SOFTBANK CORP. 1 Aug 21, 2009 Version
Slide 2: Disclaimer
Disclaimer This material is made based on information available at the time of writing. Statements in this material that are not historical facts including, without limitation, our plans, forecasts and strategies are Forward-looking Statements. Forward-looking Statements are subject to various risks
Slide 3: Accounting, Finance, Operating
Accounting 4 Consolidated P/L Analysis 5 Consolidated B/S Analysis 14 Consolidated CF Analysis 24 Finance 29 Operating 57 Broadband Infrastructure Segment 59 Fixed-line Telecommunications Segment 63 Mobile Communications Segment 67 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
<P/L-1> Consolidated P/L Summary <bn JPY> Net Sales Operating Income Ordinary Income Net Income 3,000 400 2,673.0 359.1 Q4 690.7 84.4 300 2,000 Q3 225.6 653.2 94.6 200 51.1 Q2 57.1 1,000 681.7 94.9 +27.3% +2.9% 100 +45.2% Q1 63.0 43.1 108.2 +41.4% 647.2 666.3 85.0 78.7 17.0 Q3 54.2 21.7 Q2 19.3 Q1 2
Slide 7: Consolidated Net Sales
<P/L-2> Consolidated Net Sales <bn JPY> 666.3 Mobile Communications +34.7bn 647.2 - Increase in telecommunications service revenue +15.7bn Increase in subscribers +24.2bn +19.0 Decrease in ARPU -9.5bn - Increase in sales of mobile handsets and accessories +19.0bn (+2.9%) Mobile Communications 372.5
Slide 8: Consolidated Operating Income
<P/L-3> Consolidated Operating Income Mobile Communications +15.9bn - Increase in net sales +34.7bn 108.2 <bn JPY> - Costs of goods sold: Decrease in valuation loss on handsets +10.4bn Increase in number of handsets sold -10.0bn - Selling, general and administrative expenses: +23.2 Increase in sales
Slide 9: Non-operating Income/Loss and Ordinary Income
<P/L-4> Non-operating Income/Loss and Ordinary Income <bn JPY> Non-operating Income/Loss Ordinary Income Other non-operating expense Interest expense Other non-operating income Equity in earnings (loss) of affiliated companies Increase in Net of increase in FY09/Q1 Foreign exchange gain Interest inc
Slide 10: Special Income/Loss and Income Before Income Taxes and Minority Interests
Special Income/Loss and Income Before Income <P/L-5> Taxes and Minority Interests < bn JPY> Special Income/Loss Income Before Income Taxes and Minority Interests Other special loss Impairment loss Unrealized appreciation (loss) on v aluation of inv estments at subsidiaries in the U.S., net* Increase
Slide 11: Tax and Other Adjustments, Difference in Tax Rate
<P/L-6> Tax and Other Adjustments, Difference in Tax Rate <bn JPY> Breakdown of Tax Expenses A Income taxes; current 19.8 main breakdown 1. Yahoo Japan 13.4 2. SBM local taxes out of scope for BBM consolidated tax return) 5.4 B Income taxes; deferred 21.1 main breakdown 3. SBM decrease in temporary
Slide 12: Difference in Tax Rate
<P/L-7> Difference in Tax Rate Reconciliation Between Statutory Tax Rate and Effective Tax Rate Rate (%) Amount (bn JPY) Income before taxes and minority interests 79.1 Statutory income tax rate 40.7% 32.2 (Main factors of permanent difference) Amortization of goodwill (mainly SBM) 7.7% 6.0 Change i
Slide 13: Loss Carryforwards (e/o June 2009)
<P/L-8> Loss Carryforwards (e/o June 2009) < bn JPY> FY08/Q4 Occurred Utilized During FY09/Q1 Balance During Deferred FY2009/Q1 Other Balance (tax Company Name (tax FY2009/Q1 Tax Assets Expiry Date (tax income Variances income income (tax income (Tax based) based) based) based) based) BB Mobile 77.1
Slide 14: Consolidated B/S Analysis
Accounting Consolidated B/S Analysis 14
Slide 15: Consolidated B/S Summary
<B/S-1> Consolidated B/S Summary SBM Others <bn JPY> Current Assets Current Liabilities 1,520.3 1,487.2 1,349.5 1,256.6 674.8 608.2 1,035.3 983.7 674.7 648.3 484.9 503.5 08/Q4 09/Q1 08/Q4 09/Q1 Fixed Assets Long-term Liabilities 2,865.0 2,838.0 2,212.2 2,201.5 1,953.9 1,925.2 1,672.2 1,634.4 911.0 9
Slide 16: Consolidated B/S (1) Current Assets
<B/S-2> Consolidated B/S (1) Current Assets <bn JPY> Assets e/o Mar 2009 e/o Jun 2009 Variance Outline Current assets 1,520.3 1,487.2 -33.0 SBM 1,035.3 983.7 -51.5 Others 484.9 503.5 18.5 Cash and deposits 457.9 482.7 24.8 Increase provided by operating activities (+79.9) Securitization of installme
Slide 17: Consolidated B/S (2) Tangible Assets
<B/S-3> Consolidated B/S (2) Tangible Assets <bn JPY> Assets e/o Mar 2009 e/o Jun 2009 Variance Outline Fixed assets 2,865.0 2,838.0 -26.9 SBM 1,953.9 1,925.2 -28.7 Others 911.0 912.8 1.8 Property and equipment, net 1,000.9 983.6 -17.2 SBM 697.1 686.8 -10.2 Others 303.8 296.8 -7.0 Building and struc
Slide 18: Consolidated B/S (3) Intangible Assets
<B/S-4> Consolidated B/S (3) Intangible Assets <bn JPY> Assets e/o Mar 2009 e/o Jun 2009 Variance Outline Intangible assets, net 1,222.1 1,202.6 -19.4 SBM 1,077.4 1,062.7 -14.6 Others 144.6 139.9 -4.7 Goodwill 956.7 940.9 -15.7 SBM 878.5 865.6 -12.8 Decrease due to amortization Others 78.1 75.2 -2.9
Slide 19: Consolidated B/S (4) Current Liabilities
<B/S-5> Consolidated B/S (4) Current Liabilities <bn JPY> Liabilities e/o Mar 2009 e/o Jun 2009 Variance Outline Current liabilities 1,349.5 1,256.6 -92.9 SBM 674.8 608.2 -66.5 Others 674.7 648.3 -26.3 Accounts payable-trade 160.3 148.5 -11.8 SBM 100.5 99.9 -0.5 Payment for merchandise (mobile hands
Slide 20: Consolidated B/S (5) Long-term Liabilities
<B/S-6> Consolidated B/S (5) Long-term Liabilities <bn JPY> Liabilities e/o Mar 2009 e/o Jun 2009 Variance Outline Long-term liabilities 2,212.2 2,201.5 -10.7 SBM 1,672.2 1,634.4 -37.8 Others 540.0 567.1 27.1 Corporate bonds 324.5 361.9 37.3 SBM Others SB stand-alone: Issue 27th Unsecured Straight C
Slide 21: Consolidated B/S (6) Equity
<B/S-7> Consolidated B/S (6) Equity <bn JPY> Net Assets e/o Mar 2009 e/o Jun 2009 Variance Outline Equity 824.7 869.1 44.3 Shareholders’ equity 348.1 374.8 26.6 Common stock 187.6 188.7 1.0 Exercise of stock acquisition rights Additional paid-in capital 211.9 213.0 1.0 Exercise of stock acquisition
Slide 22: (Equity) Foreign Currency Translation Adjustments
<B/S-8> (Equity) Foreign Currency Translation Adjustments <bn JPY> 60 Foreign currency translation adjustments account 40 35.9 20 28.8 25.6 30.6 7.4 4.4 3.4 0 -25.7 -21.8 -20 -30.5 -40 06/Q4 07/Q1 Q2 Q3 Q4 08/Q1 Q2 Q3 Q4 09/Q1 (JPY) <Ref> exchange rate trend Pound/Yen (TTM） 240 Euro/Yen (TTM) $/Yen
Slide 23: (Equity) Shareholders' Equity
<B/S-9> (Equity) Shareholders’ Equity Common stock & additional paid-in capital* Accumulated deficit Treasury stock Unrealized gain on available-for-sale securities Deferred gain (loss) on derivatives under hedge accounting Foreign currency translation adjustments Shareholders' equity *Including * I
Slide 24: Consolidated CF Analysis
Accounting Consolidated CF Analysis 24
Slide 25: Consolidated Cash Flow Main Breakdown
<bn JPY> 25 481.8 09/Q1 Cash and cash equivalents at the end of the period Note: significant items from the consolidated CF statement are shown here. Repayment of lease -21.8 obligations Payment of dividend to -4.4 minority shareholders Financing CF 59.2 Bonds issued -31.3 -123.5 Repayment of long-
Slide 26: Earnings Forecast
Earnings Forecast Operating Income Free Cash Flow 500 500 <bn JPY> +17% 420.0 400 400 359.1 +38% 300 300 250.0 200 200 181.5 100 100 0 0 FY2008 FY2009 FY2008 FY2009 (actual) (forecast) (actual) (forecast) 26 Definition: Free Cash Flow = cash flows from operating activities + cash flows from investin
Slide 27: Scope of Consolidation/Scope of Equity Method
Scope of Consolidation/Scope of Equity Method No. of Core Companies Comp. Consolidated subsidiaries 110 SOFTBANK MOBILE, SOFTBANK BB, SOFTBANK TELECOM, Yahoo Japan, SOFTBANK TECHNOLOGY, ITmedia, etc. Newly consolidated subsidiaries 5 Subsidiaries excluded from consolidation 3 Non-consolidated subsid
Slide 28: wm OOftBank
wm OOftBank
Slide 29: Finance
Finance Yoshimitsu Goto General Manager Finance SOFTBANK CORP. *Group Management was abolished and combined with Finance on May 1, 2009 29
Slide 30: Main Financial Activities of FY2009
Main Financial Activities of FY2009 Amount Date Content (JPY bn) Issue 27th Unsecured Straight Corporate Bond June 2009 60.0 (Fukuoka SoftBank HAWKS Bond) Securitization of installment sales receivables June 2009 70.2 (ninth) July 2009 Issue 28th Unsecured Straight Corporate Bond 30.0 30
Slide 31: FCF Actual - Forecast
FCF Actual - Forecast <bn JPY> Consolidated FCF: Yearly Trend 300 250.0 (forecast) 250 68.4bn (37.7%) 200 181.5 increase 150 JPY 345.7bn 100 increase FY09/Q1 actual 50 56.5bn JPY 0 -50 -100 -150 -164.2 -200 FY07 FY08 FY09 Definition: FCF = cash flows from operating activities + cash flows from inves
Slide 32: Cash Flow Trend
Cash Flow Trend Consolidated FCF: Yearly Trend <bn JPY> Operating CF Investing CF Financing CF FCF 250 200 133.9 150 100 52.1 35.5 49.9 50 56.5 10.4 0 -50 -37.8 -100 -87.8 -150 -138.9 -200 07/Q1 Q2 Q3 Q4 08/Q1 Q2 Q3 Q4 09/Q1 Definition: FCF = cash flows from operating activities + cash flows from in
Slide 33: EBITDA and EBITDA Margin (by segment)
EBITDA and EBITDA Margin (by segment) ¾ EBITDA growing steadily in each segment. Consolidated EBITDA EBITDA Margin <bn JPY> Elimination Other 60% Internet Culture e-Commerce 56% BB Infra Fixed-line Telecommunications 53% 184.8 53% 190 Mobile Communications 50% Internet Culture 161.4 149.7 40% 140 Br
Slide 34: EBITDA - CAPEX
EBITDA - CAPEX ¾ Steady increase due to expansion of EBITDA. <bn JPY> EBITDA - CAPEX 800 678.6 626.6 525.4 EBITDA - CAPEX 419.5 EBITDA 400 332.9 CAPEX 135.6 184.8 Q1 actual 0 -40.3 -220.0 -259.0 (yearly plan) -293.7 -400 -389.8 FY06 FY07 FY08 FY09 (* )CAPEX on acquisition basis 34
Slide 35: EBITDA – CAPEX (main segments)
EBITDA – CAPEX (main segments) Yearly Trend <bn JPY> Mobile Communications BB Infrastructure 200 200 100 204.6 100 150.0 84.8 49.0 56.3 16.4 13.0 33.4 0 0 FY06 FY07 FY08 FY09/Q1 FY06 FY07 FY08 FY09/Q1 FY Quarterly FY Quarterly 200 200 Internet Culture Fixed-line Telecommunications 100 100 115.8 127.
Slide 36: Interest-bearing Debt (by procurement method)
Interest-bearing Debt (by procurement method) <bn JPY> Interest-bearing Debt Securitization of installment 3,000 sales receivables obligations SBM loan 2,545.3 Vodafone subordinate loan 2,494.9 223.1 2,432.2 2,400.3 2,392.0 230.9 Yahoo Japan Corporation 218.8 221.9 231.9 borrowings Borrowings from o
Slide 37: Balance of Lease Obligations
Balance of Lease Obligations <bn JPY> Lease Obligations 3,000 Finance leases (off balance) Finance leases (on balance) 2,000 1,000 481.4 494.5 468.7 462.9 436.1 166.0 157.5 149.5 141.3 133.4 315.3 336.9 319.2 321.5 302.7 0 08/Q1 Q2 Q3 Q4 09/Q1 37
Slide 38: Net Interest-bearing Debt Balance
Net Interest-bearing Debt Balance <bn JPY> Net Interest-bearing Debt 3,000 Securitization of installment sales receivables obligations Excl. securitization of installments 2,119.3 2,070.9 2,044.9 2,000 223.1 1,939.5 1,905.1 230.9 218.8 221.9 231.9 1,000 1,896.2 1,840.0 1,826.1 1,717.5 1,673.1 0 08/Q
Slide 39: Cash Position
Cash Position Cash Position <bn JPY> 600 525.9 525.0 537.8 481.8 51.0 100.0 101.0 21.0 423.3 Unused portion of credit line facility 400 36.0 Cash & cash equivalents 486.8 460.8 200 425.9 424.0 387.3 0 08/Q1 Q2 Q3 Q4 FY09/Q1 Definition: cash position = cash&cash deposits, marketable securities unused
Slide 40: Interest-bearing Debt Long/short and Fixed/Variable Ratio (e/o June 2009)
Interest-bearing Debt Long/short and Fixed/Variable Ratio (e/o June 2009) Interest-bearing Debt Interest-bearing Debt Long/short Ratio Fixed/Variable Ratio <bn JPY> <bn JPY> Variable rate Short-term debt 354.2 626.8 15% 26% Long-term debt Fixed interest 1,765.1 procurement 2,037.7 74% 85% 40
Slide 41: Interest-bearing Debt Long/short and Fixed/Variable Ratio
Interest-bearing Debt Long/short and Fixed/Variable Ratio Interest-bearing Debt Interest-bearing Debt Long/short Ratio Fixed/Variable Ratio <bn JPY> <bn JPY> Short-term Fixed Variable Long-term 100% 100% 410.0 354.2 90% 626.8 90% 639.5 80% 80% 70% 70% 60% 60% 50% 50% 1,990.3 2,037.7 40% 40% 1,760.8
Slide 42: Current Portion of Liabilities Details (e/o June 2009)
Current Portion of Liabilities Details (e/o June 2009) Short-term Borrowings 298.1 <bn JPY> Credit line facility (SB) 150.0 Cash receipts as collateral relating to 117.0 marketable security lending transactions Bank loans (SB) 28.8 Others 2.3 Current portion of Long-term Borrowings 242.7 Securitizat
Slide 43: First Corporate Bond in 2 Years
First Corporate Bond in 2 Years June 27th Unsecured Straight Corporate Bond JPY 60.0bn (Fukuoka SoftBank HAWKS Bond) (for individual investors) JPY 30.0bn July 28th Unsecured Straight Corporate Bond (for institutional investors) • Secure long and stable financing •Resume access to corporate bond mar
Slide 44: Corporate Bond Spread Shrinking
Corporate Bond Spread Shrinking (bp) SOFTBANK’s Existing CB Spread 550 27th series conditions fixed 500 450 400 26th series (5yrs remaining) 25th series (2yrs remaining) 350 28th series conditions fixed 300 Jan Feb Mar Apr May Jun Jul Aug FY08 FY09 Source: Japan Securities Dealers Association 44
Slide 45: Bond Redemption Schedule
Bond Redemption Schedule ¾ Sustain sufficient cash position. <bn JPY> Repayment Resources Bond Redemption Schedule 800 Unused portion of credit line facility SB straight bonds SBTM straight bonds Cash position 600 SB convertible bonds (*) 537.8 481.8 51.0 21.0 400 CB 460.8 486.8 200 45.0 <50.0> <50.
Slide 46: Corporate Bond Details
Corporate Bond Details <mil JPY> Interest Mar 09 Jun 09 Company name Bond Issue date Maturity date rate Collateral Change balance balance (%/year) 19th series Unsecured Straight Bond 2005/1/31 2010/1/29 1.97 None 19,000 19,000 － 24th series Unsecured Straight Bond 2007/4/26 2010/4/26 2.72 None 20,00
Slide 47: SBM Loan
SBM Loan ¾ SBM loan repayment exceeds forecast <bn JPY> SBM Loan Cumulative Repayment Amount 250 4.5 247.0 Mobile 211.8 Communications 200 3.9 181.1 4.0 leverage ratio* 158.2 X3.1 150 (FY09/Q1) 126.7 3.5 104.1 100 Net interest-bearing 3.1 debt basis 50 3.0 X2.6 *Leverage ratio = 0 2.5 Mobile Communi
Slide 48: Debt Balance After Mobile Business Acquisition
Debt Balance After Mobile Business Acquisition <bn JPY> 1,400 1,200 1,000 Steadily repaying 800 Forecast 600 400 Minimum 200 0 * Loan started: Nov 2006 08 09 10 11 12 13 14 15 16 17 18 e nc 20 20 20 20 20 20 20 20 20 20 20 * WBS balance borrowed by SBM ala FY FY FY FY FY FY FY FY FY FY FY gb nin gin
Slide 49: Securitization of Installment Receivables
Securitization of Installment Receivables ¾ Continue securitization of installment receivables going forwards. Securitization of Installment Receivables <bn JPY> 230.9 231.9 250 219.0 223.1 218.8 221.9 Balance 193.4 200 142.1 150 88.1 100 <bn JPY> 50 100 88.1 80 71.5 70.2 0 23.0 64.8 56.1 57.2 61.4
Slide 50: Improve Indexes: (1) Interest-bearing Debt/EBITDA Multiple
Improve Indexes: (1) Interest-bearing Debt/EBITDA Multiple ¾ Combine reduction of interest-bearing debt and expansion of EBITDA. Interest-bearing Debt/EBITDA Multiple (Ref.) Net Interest-bearing Debt/EBITDA 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 3.2 2.9 2.6 2.0 2.0 0.0
Slide 51: Improve Indexes: (2) Debt/Equity Ratio
Improve Indexes: (2) Debt/Equity Ratio ¾ Ratio improving steadily. (times) (times) 14.0 Debt Equity Ratio 14.0 Net Debt Equity Ratio D/E ratio Net D/E ratio 12.0 D/E ratio (excl. Mobile) 12.0 Net D/E ratio (excl. Mobile) 10.0 9.0 10.0 7.6 8.0 8.0 6.6 6.4 5.8 6.0 6.0 5.3 5.2 4.6 3.9 4.0 4.0 2.9 2.5 2
Slide 52: Improve Indexes: (3) Interest Coverage Ratio
Improve Indexes: (3) Interest Coverage Ratio ¾ Maintain stable trend. Quarterly Interest Coverage Ratio* (Quarterly) Quarterly Interest Coverage Ratio* (Yearly) (times) (times) 14.0 14.0 Interest coverage ratio Interest coverage ratio 12.0 12.0 10.0 10.0 8.0 8.0 6.7 6.7 6.1 6.1 6.3 6.3 5.7 6.0 6.0 6
Slide 53: Improve Indexes: (4) Equity Ratio
Improve Indexes: (4) Equity Ratio ¾ Improve equity ratio through steady build up of profit. Equity Ratio (Ref.) Considering Unrealized Gain <bn JPY> <bn JPY> 54.5% Shareholders' equity (considering unrealized 2,000 30% 2,000 gain) 30% Equity ratio (considering unrealized gain) Shareholders' equity 1
Slide 54: FY2009 Financial Strategies
FY2009 Financial Strategies Towards ‘ZERO net-interest bearing debt’ ¾Maximize FCF, through maximum operating CF and appropriate investing CF ¾Continued improvement of various financial indexes through steady reduction of debts ¾Improve credit rating as a result of strengthening of balance sheet Con
Slide 55: wm OOftBank
wm OOftBank
Slide 56: wm OOftBank
wm OOftBank
Slide 57: 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. 57
Slide 58: Overview of Telecommunications Businesses
Overview of 3 Telecommunications Businesses ¾ Significant increase in profit in all 3 telecommunications businesses. <bn JPY> BB Infrastructure Fixed-line Telecommunications Mobile Communications 117.2 99.5 60.2 44.2 13.9 16.3 18.0 14.6 10.4 12.2 3.4 0.7 08/Q1 09/Q1 08/Q1 09/Q1 08/Q1 09/Q1 08/Q1 09/
Slide 59: Broadband Infrastructure Business
Operation Broadband Infrastructure Business 59
Slide 60: Operating Income, EBITDA (BB Business)
Operating Income, EBITDA (BB Business) <BB-1> ¾ Maintain trend of revenue increase through cost reductions. <bn JPY> Operating Income EBITDA 80 80 70.3 70.9 16.8 18.2 55.6 47.2 Q4 15.7 39.7 18.5 20.1 10.6 40 40 9.4 Q3 15.4 26.8 14.3 Q4 11.3 17.5 17.5 7.3 Q2 12.6 Q3 7.7 11.7 10.3 Q2 6.1 15.9 16.3 18.
Slide 61: Yahoo! BB ADSL Lines and ARPU
Yahoo! BB ADSL Lines and ARPU <BB-2> ¾ Number of ADSL lines are decreasing. ARPU on same level. Number of Lines and ARPU Full Charged Users (k lines) (JPY) 1.Basic charge 4.BB Phone 2.Modem rental revenue 5.BB Security 6,000 3.WLAN 6.Yahoo! ISP 5,000 5,090 5,130 4,259 5,000 4,650 6 5 4,160 4,000 4 4
Slide 62: CAPEX [actual] (BB Business)
CAPEX [actual] (BB Business) <BB-3> ¾ CAPEX stabilized within range of depreciation. <bn JPY> CAPEX and Depreciation & Amortization 25 CAPEX yearly trend (quarterly trend) 50 CAPEX 20 40 Depreciation & amortization 15 30 22.1 21.2 10 20 (forecast amount) 6.9 6.7 6.4 6.4 14.5 14.4 5.6 5.3 5.3 5.5 4.4
Slide 63: Fixed-line Telecommunications
Operation Fixed-line Telecommunications 63
Slide 64: Operating Income, EBITDA (Fixed-line Telecommunications Business)
Operating Income, EBITDA (Fixed-line Telecommunications Business) <Fixed-1> ¾ Trend of revenue increase through enhancement of corporate lines <bn JPY> and efficient management (increase in revenue and profit).*1 Operating Income/Loss EBITDA 20 18.9 75 64.3 15 7.6 18.7 50 47.9 10 42.5 13.0 5.7 Q4 10
Slide 65: Number of Lines and ARPU for OTOKU Line
Number of Lines and ARPU for OTOKU Line <Fixed-2> ¾ Number of lines and ARPU improving due to enhancement of corporate lines. (k lines) Number of Lines (JPY) ARPU 1,800 Corporate lines: 1,290 12,000 Heisei Denden Corporate lines ratio: 79% Large Corp. Total Large Corp. 1,630 1,600 SME (SBTP) 1,440 S
Slide 66: CAPEX [actual] (Fixed-line Telecommunications Business)
CAPEX [actual] (Fixed-line Telecommunications Business) <Fixed-3> ¾ CAPEX stabilized within range of depreciation. <bn JPY> CAPEX and Depreciation & Amortization CAPEX (yearly trend) 40 (quarterly trend) 150 CAPEX Depreciation & amortization 30 100 82.6 20 50 9.6 9.4 9.4 9.4 9.2 9.2 9.1 9.1 8.9 37.6
Slide 67: Mobile Communications
Operation Mobile Communications 67
Slide 68: SBM Consolidated Net Sales
SBM Consolidated Net Sales <Mobile-1> ¾ Both telecom service revenue and handset sales revenue increased YoY. <bn JPY> SBM Consolidated Net Sales SBM Consolidated Net Sales Yearly Comparison Quarterly Comparison Telecom service income Sales of mobile handsets and accessories Telecom service income (
Slide 69: Operating Income (SB consolidated, SBM consolidated)
Operating Income (SB consolidated, SBM consolidated) <Mobile-2> ¾ Significant increase in revenue by increase of sales and efficient management. Led the consolidated results. SB Consolidated SBM Consolidated (bn JPY) Mobile Communications Segment (bn JPY) 200 200 (YoY) 189.3 (YoY) 174.5 171.3 155.7
Slide 70: EBITDA (SB consolidated, SBM consolidated)
EBITDA (SB consolidated, SBM consolidated) <Mobile-3> ¾ Favorable trend sustained by sales increase and efficient management. <bn JPY> SB Consolidated Mobile Communications Segment SBM Consolidated (YoY) (YoY) 403.8 397.2 400 385.4 400 376.9 350.0 80.6 100.0 321.4 98.5 78.2 Q4 88.6 300 300 87.9 Q4 1
Slide 71: Quarterly Net Additions
Quarterly Net Additions <Mobile-4> ¾ No.1 in net additions for 26 consecutive months. <k lines> 1,000 973 FY09/Q1 net additions 800 323k 633 612 600 <Breakdown> 531 561 526 521 Postpaid +359k 412 Prepaid -36k 400 367 323 FY09/Q1 net addition share 190 200 125 93 67 25 0 30 32% Others -74 -200 [FY] 1
Slide 72: Total Subscribers, 3G Subscribers
Total Subscribers, 3G Subscribers <Mobile-5> ¾ Number of total subscribers growing steadily. 3G subscribers exceeded 93%. <mil lines> 20.96 20.00 19.11 2G 3G Cumulative 16.44 15.24 2009/6 20.96 mil 14.97 15.00 1.30 2006/6 15.24 mil 3.72 In 3 years +5.72 mil 9.22 15.11 19.46 10.00 3G Ratio 13.67 2009
Slide 73: Churn Rate & Upgrade Rate
Churn Rate & Upgrade Rate <Mobile-6> ¾ Churn rate improved since FY08/Q4. In FY08/Q1 increased due to first cycle of installments ended. ¾ Steady trend in upgrade rate with the introduction of new summer model HS and iPhone 3G. Churn Rate Upgrade Rate Total 3G postpaid 3.0% 2.0% 1.73% 1.46% 1.98% 2.
Slide 74: New Super Bonus Ratio and Installment Sales Receivables
New Super Bonus Ratio and Installment Sales Receivables<Mobile-7> ¾ Maintain high subscription ratio. Installment balance over peak. Favorable trend in securitization of installment sales receivables. New Super Bonus Subscription Ratio Installment Sales Receivables Balance (bn JPY) (include Super Bo
Slide 75: Cash Flow Impact from Installment Sales Receivables
Cash Flow Impact from Installment Sales Receivables <Mobile-8> ¾ First cycle of increase in installment receivables ended. Improved impact on operating cash flow. Installment Sales Receivables Balance (bn JPY) (Yearly) Decline in growth of installment sales receivables (decrease of Operating CF’s mi
Slide 76: ARPU (telecom service revenue per subscription)
ARPU (telecom service revenue per subscription) <Mobile-9> ¾ Total ARPU improved 200 JPY compared to FY08/Q4 back to be 4,000 JPY level. ¾ Data ARPU growth trend continued. (JPY) 6,000 5,590 Data Voice FY08/Q4 Comparison 5,000 5,000 4,180 Total 4,030 4,000 3,830 +200 JPY 4,230 3,590 Basic charge 3,0
Slide 77: ARPU (telecom service revenue per subscription)
ARPU (telecom service revenue per subscription) <Mobile-10> ¾ Comp. FY08/Q4: data ARPU increased, voice ARPU increased due absence of seasonal factors, installment balance peaked out. ¾ Comp. to FY08/Q1: data ARPU increased, voice ARPU continued to decrease, Monthly Discounts expanding. (JPY) Monthl
Slide 78: Revenue Per Subscription YoY Comparison
Revenue Per Subscription YoY Comaprison <Mobile-11> ¾ ARPU is improving trend in the yearly comparison. (%) 5% -3.6% -5% -4.9% -9.5% -15% -13.1% -11.1% -17.2% -16.4% <Seasonal factors> -access charge -18.7% -leap year -25% 06/Q1 Q2 Q3 Q4 07/Q1 Q2 Q3 Q4 08/Q1 Q2 Q3 Q4 09/Q1 *Telecom revenue per subsc
Slide 79: Revenue Per Subscription (average)
Revenue Per Subscription (average) <Mobile-12> ¾ Favorable trend in cash income per subscriber (incl. HS installment payments). Reason for improvement in operating CF. * Impact from access charge (JPY) HS installment payment 7,000 Backup Service Package, etc. leap year Voice Data 6,000 5,790 5,850 5
Slide 80: CAPEX [actual] (Mobile Communications Business)
CAPEX [actual] (Mobile Communications Business) <Mobile-13> ¾ Continue effective CAPEX <bn JPY> CAPEX and Depreciation & Amortization CAPEX (yearly trend) (quarterly trend) 100 400 CAPEX (Mobile Communications segment) 1 month Depreciation & amortization(Mobile (Apr 06) Communications Business) Refe
Slide 81: Improved in Inventory
Improved in Inventory <Mobile-14> ¾ Big reduction in inventory ¾ Big improvement of allowances <bn JPY> SBM Inventory (on B/S) <bn JPY> Allowance for Doubtful Accounts of 70 Installment Receivables and Bad Debt Loss 35 66.0 60 30.4 09/Q1 30 Occurred in this period: 2.1bn Reverse of past allowance: -
Slide 82: Trademark and copyright notices
* 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