Softbank Group Corp. · TSE:9984

Softbank — H1 FY2013 Earnings Presentation

110 slides from Softbank's earnings presentation, Oct 31, 2013

1. Slide 1: Earnings Results for the Six-month Period Ended September 30, 2013

   Earnings Results for the Six-month Period Ended September 30, 2013 October 31, 2013 SoftBank Corp.

2. 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

3. Slide 3: Highlights

   Highlights 1. Net sales JPY 2.6t (73% increase) 2. Record high EBIT JPY 715.1bn (67% increase) 3. Net income JPY 394.9bn (84% increase) 2

4. Slide 4: No.1 in all KPIs

   FY2013 H1 Consolidated Earnings Results Rank Company Net Sales EBIT Net Income (Operating Income) 1 JPY 2.6t JPY 715.1bn JPY 394.9bn 2 JPY 2.2t JPY 473.2bn JPY 300.4bn 3 JPY 2.1t JPY 347.6bn JPY 163.0bn No.1 in all KPIs * Created by SoftBank Corp. based on respective companies’ publicly available in

5. Slide 5: Consolidated Earnings Results

   Consolidated Earnings Results 4

6. Slide 6: Net Sales: Record high 73% increase

   (JPY t) Net Sales 2.6t Sprint segment 0.8t 1.8t Record high 73% increase 1.5t 0 2003 ’04 ’05 ’06 ’07 ’08 ’09 ’10 ’11 ’12 ’13 (FY) H1 H1 H1 H1 H1 H1 H1 H1 H1 H1 H1 Japanese-GAAP IFRSs 5

7. Slide 7: Net Sales: Outpaced DOCOMO

   (JPY t) Net Sales 2.6t 2.2t 2.1t KDDI Outpaced DOCOMO 0 2005 ’06 ’07 ’08 ’09 ’10 ’11 ’12 ’13 (FY) H1 H1 H1 H1 H1 H1 H1 H1 H1 * Created by SoftBank Corp. based on respective companies’ publicly available historical information. Japanese-GAAP IFRSs 6

8. Slide 8: EBITDA: Record high for 10 consecutive periods

   EBITDA 816.0 (JPY bn) 111.9 Sprint segment 587.8 704.1 Record high for 10 consecutive periods 39% increase 0 2003 ’04 ’05 ’06 ’07 ’08 ’09 ’10 ’11 ’12 ’13 (FY) H1 H1 H1 H1 H1 H1 H1 H1 H1 H1 H1 Japanese-GAAP IFRSs 7

9. Slide 9: EBIT: 67% increase

   EBIT 715.1 (Operating Income) (JPY bn) Consolidated EBIT One-time gains from making Record high for 249.0 GungHo and WILLCOM subsidiaries, etc. 429.1 488.4 8 consecutive periods 67% increase 0 - 22.3 Sprint segment 2003 ’04 ’05 ’06 ’07 ’08 ’09 ’10 ’11 ’12 ’13 (FY) H1 H1 H1 H1 H1 H1 H1 H1 H1 H1 H1 Ja

10. Slide 10: EBIT: Outpaced DOCOMO

    (JPY bn) EBIT 715.1 (Operating income) 473.2 347.6 Outpaced DOCOMO 0 2005 ’06 ’07 ’08 ’09 ’10 ’11 ’12 ’13 (FY) H1 H1 H1 H1 H1 H1 H1 H1 H1 * Created by SoftBank Corp. based on respective companies’ publicly available historical information. Japanese-GAAP IFRSs 9

11. Slide 11: EBIT growth rate: Significant growth

    EBIT (Operating Income) Growth Rate (YoY) +67% Significant +50% growth + 0.4% KDDI * Created by SoftBank Corp. based on respective companies’ publicly available information. 10

12. Slide 12: Domestic EBIT ranking: No.2

    Domestic EBIT (Operating Income) Ranking (FY13/H1 forecast) Domestic Rank Company JPY t 1 Toyota Motor 1.27 2 3 SoftBank (actual) NTT 0.72 0.67 No.2 4 NTT DOCOMO (actual) 0.47 5 Honda Motor (actual) 0.36 6 KDDI (actual) 0.35 7 INPEX 0.33 8 JT 0.30 9 Central Japan Railway (actual) 0.29 (Source) Bloom

13. Slide 13: Global EBIT ranking: No.24

    Global EBIT (Operating Income) Ranking (Last 6 months results) Rank Country Company JPY t 1 Gazprom 2.6 2 Apple 2.1 3 Exxon Mobil 1.9 4 Samsung 1.7 5 PetroChina 1.5 6 Royal Dutch Shell 1.4 EBIT Global No.24 7 Chevron 1.4 8 Verizon 1.4 9 Wal-Mart Stores 1.3 10 Toyota Motor 1.3 24 SoftBank 0.72 (Sourc

14. Slide 14: Global EBIT growth rate ranking: No.3

    Global EBIT Growth Rate Ranking (Last 6 months results) (Companies with more than 7 trillion yen of market cap) Rank Country Company % 1 Toyota Motor 84% Growth rate 2 Samsung 75% 3 SoftBank 67% Global No.3 4 BP 57% (out of 77 companies) 5 Verizon 53% 6 TSMC 49% 7 Qualcomm 47% 8 Schlumberger 47% 9 T

15. Slide 15: Net Income: Record high

    (JPY bn) Net Income 394.9 (Net income attributable to owners of the parent) Record high 84% increase 214.6 0 2003 ’04 ’05 ’06 ’07 ’08 ’09 ’10 ’11 ’12 ’13 H1 H1 H1 H1 H1 H1 H1 H1 H1 H1 H1 (FY) Japanese-GAAP IFRSs 14

16. Slide 16: Net Income: Outpaced DOCOMO

    Net Income (JPY bn) 394.9 300.4 Outpaced 163.0 KDDI DOCOMO 0 2005 ’06 ’07 ’08 ’09 ’10 ’11 ’12 ’13 (FY) H1 H1 H1 H1 H1 H1 H1 H1 H1 * Created by SoftBank Corp. based on respective companies’ publicly available historical information. Japanese-GAAP IFRSs 15

17. Slide 17: Summary of Consolidated Earnings Results

    Summary of Consolidated Earnings Results (JPY bn) FY12/H1 FY13/H1 Change YoY Net Sales 1,504.6 2,598.6 1,094.0 173% EBITDA 587.8 816.0 228.2 139% EBIT 429.1 715.1 286.0 167% (Operating income) Net Income 214.6 394.9 180.3 184% (Net income attributable to owners of the parent) 16

18. Slide 18: Cash Flow

    Cash Flow (JPY bn) FY12/H1 FY13/H1 Operating cash flow 447.0 451.2 Free cash flow 103.3 - 1,650.8 Decrease from acquisition of control over subsidiaries (Sprint, GungHo, etc. ) - 2.0 - 1,430.7 Proceeds from settlement of foreign incl. currency forward contract for acquisition - 310.1 of control of s

19. Slide 19: Operating Cash Flow: Record high for 5 consecutive periods

    Operating Cash Flow (JPY bn) 447.0 451.2 Record high for 5 consecutive periods 2008 ’09 ’10 ’11 ’12 ’13 (FY) H1 H1 H1 H1 H1 H1 Japanese-GAAP IFRSs 18

20. Slide 20: Net Interest-bearing Debt/EBITDA Multiple

    Net Interest-bearing Debt/ (times) EBITDA Multiple 7 6.2x (Post Vodafone K.K. acquisition) 6 5 Promptly return 4 3.2x to a lower level 3 2.8x (excluding Sprint) 2 1 0 At Peak ’07 ’08 ’09 ’10 ’11 ’12 ’13 (At the end of Sept. EBITDA: H1 EBITDA x 2 each year) * EBITDA for 2013 = (H1 actual of domestic

21. Slide 21: Refinancing of Acquisition Finance of Sprint, etc.

    Refinancing of Acquisition Finance of Sprint, etc. Date of September 13, 2013 contract Amount JPY 1.98 t Maturity 5 years / 7 years 1. Repayment of bridge loan for Sprint acquisition Use of loan 2. Repayment of some existing borrowings proceeds 3. Repayment of some existing debts at eAccess Interest

22. Slide 22: Average Borrowing Cost

    Average Borrowing Cost 3.8% Substantially lower borrowing cost 1.4% Vodafone K.K. Sprint acquisition acquisition (2006) (2013) 21

23. Slide 23: Mobile Communications Segment

    Mobile Communications Segment 22

24. Slide 24: iPhone 5s and 5c

    iPhone 5s and 5c Cumulative Sales Share 26% Sales share 40% No.1 34% (Source) BCN Ranking Compiled by BCN based on sales data from major electronics retail stores nationwide (Sept. 20 - Oct. 20, 2013) 23

25. Slide 25: No.1 Operator for Net Additions

    No.1 Operator for Net Additions 2005 2006 2007 2008 2009 2010 2011 2012 2013 Jan. Feb. Mar. Apr. May SoftBank June iPhone July docomo Aug. iPhone au Sept. iPhone Oct. Nov. Dec. 24

26. Slide 26: Net Additions

    Net Additions (April - September 2013) 1.91mil EMOBILE Overwhelmingly No.1 WILLCOM 1.34mil 1.59mil 0.24mil * Created by SoftBank Corp. based on respective companies’ publicly available information. 25

27. Slide 27: MNP Net Additions

    MNP Net Additions 280k Doubled YoY 140k FY2012 / H1 FY2013 / H1 * Created by SoftBank Corp. based on respective companies’ publicly available information. 26

28. Slide 28: ARPU

    (JPY) ARPU 5,900 6,000 5,890 5,500 Steady trend 5,000 4,590 4,500 4,430 4,520 4,460 4,000 * Excluding communication modules. Created by SoftBank Corp. based on respective companies’ publicly available historical information 3,500 * Total voice ARPU and data ARPU for NTT DOCOMO’s FY2011 - 2013 includ

29. Slide 29: Mobile Service Revenue

    Mobile Service Revenue 996.0 (JPY bn) 770.0 Steady growth 29% increase * Including impact of JPY 164.4bn from newly consolidated subsidiaries from FY2013 (GungHo, eAccess, WILLCOM, etc.) 2008 ’09 ’10 ’11 ’12 ’13 (FY) * FY2008 - 2011: mobile telecom service revenue of SoftBank Mobile H1 H1 H1 H1 H1 H

30. Slide 30: Mobile EBITDA Margin

    Mobile EBITDA Margin 55% 52% 45% Significant 38% improvement 35% 28% 25% (FY) 2003 ’04 ’05 ’06 ’07 ’08 ’09 ’10 ’11 ’12 ’13 * FY2006 - 2011: Mobile Communications business EBITDA / SoftBank Mobile’s H1 H1 H1 H1 H1 H1 H1 H1 H1 H1 H1 telecom service revenue FY2012 - 2013: Mobile Communications business

31. Slide 31: Mobile EBITDA Margin: Global No.1

    Mobile EBITDA Margin SoftBank 52% Verizon 50% NTT DOCOMO 46% China Mobile 43% AT&T 43% Global Bharti Airtel 33% No.1 * Created by SoftBank Corp. based on respective companies’ publicly available information. YTD 2013 20% Mobile EBITDA Margin = Mobile EBITDA / Mobile telecom service revenue Consolida

32. Slide 32: Mobile EBIT

    (JPY bn) Mobile EBIT (Operating Income) 339.6 290.0 8x after acquisition 17% increase YoY 43.5 * Including impact of JPY 28.3bn from newly consolidated subsidiaries from FY2013 (GungHo, eAccess, WILLCOM, etc.) 0 2002 ’03 ’04 ’05 ’06 ’07 ’08 ’09 ’10 ’11 ’12 ’13 (FY) H1 H1 H1 H1 H1 H1 H1 H1 H1 H1 H1 H

33. Slide 33: Toward the No.1 Network in the Smartphone Era

    Toward the No.1 Network in the Smartphone Era 32

34. Slide 34: No.1 Network in the Smartphone Era

    No.1 Network in the Smartphone Era 1. No.1 in smartphone connectivity 2. No.1 in high-speed services 33

35. Slide 35: No.1 Network in the Smartphone Era

    No.1 Network in the Smartphone Era 1. No.1 in smartphone connectivity 2. No.1 in high-speed services 34

36. Slide 36: Platinum Band Base Stations

    Platinum Band Base Stations 28k Steady increase July Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct. 2012 2013 35

37. Slide 37: Service Coverage Area Map

    Service Coverage Area Map 31/2 years ago (Mar. 31, 2010) * Created by SoftBank Corp. based on the latest information published on respective companies’ websites. (NTT DOCOMO: Aug. 31, 2013, KDDI: June 30, 2013) 36

38. Slide 38: Service Coverage Area Map

    Service Coverage Area Map Today * Created by SoftBank Corp. based on the latest information published on respective companies’ websites. (NTT DOCOMO: Aug. 31, 2013, KDDI: June 30, 2013, SoftBank: Aug. 31, 2013) 37

39. Slide 39: Service Coverage Area Map

    Service Coverage Area Map 31/2 years ago (Mar. 31, 2010) * Created by SoftBank Corp. based on the latest information published on respective companies’ websites. (NTT DOCOMO: Sept. 30, 2013, KDDI: June 30, 2013) 38

40. Slide 40: Service Coverage Area Map

    Service Coverage Area Map Now * Created by SoftBank Corp. based on the latest information published on respective companies’ websites. (NTT DOCOMO: Sept. 30, 2013, KDDI: June 30, 2013, SoftBank: Aug. 31, 2013) 39

41. Slide 41: Smartphone Data Connectivity Rate

    100% Smartphone Data Connectivity Rate 99% Data 98.3% 98% connectivity 97% 96.9% 96.4% No.1 96% 95% * Statistics analyzed by Agoop Corp. Platinum band-compatible smartphone data connection: total 120,000 platinum band-compatible smartphones (40,000 for each operator) were Jan. 13, 2013 Oct. 27 rando

42. Slide 42: Data Connectivity Rate by Landmark

    Data Connectivity Rate by Landmark Landmarks Railway stations 98.3% 96.5% 97.5% Universities 97.6% 95.7% 96.8% Shopping malls 98.2% 96.7% 97.3% Clean Department stores 97.8% 97.1% 97.2% Electronics retail stores 98.3% 96.8% 97.4% sweep Convenience stores 98.5% 96.5% 97.5% Restaurants 98.5% 96.8% 97.

43. Slide 43: iPhone 5s and 5c Data Connectivity Rate

    99% iPhone 5s and 5c Data Connectivity Rate 98.5% 98% 98.2% Data connectivity 97.8% No.1 97% * Statistics analyzed by Agoop Corp.: total 54,000 iPhone 5s and iPhone 5c from the Sept. 29, 2013 Oct. 27 3 operators. Analysis data was collected through the disaster warning app (by Yahoo Japan) and Ramen

44. Slide 44: Smartphone Call Connectivity Rate

    Smartphone Call Connectivity Rate Call 99% 98.6% connectivity 98% 98.0 98.0 No.1 97% * Nationwide survey by Ipsos K.K. Call connection rates of smartphones Actual connection rate on calls made to 16,370 smartphone users SoftBank: 6,320 users, NTT DOCOMO: 4,860 users, au: 5,190 users) July 24, 2012 O

45. Slide 45: No serious network incident for 889 days

    Major incidents that must be reported to the Communications Minister (since June 2011) Date Operator Affected Users No serious 2011/6/6 1.5mil network incident 2011/8/16 1.1mil 2011/11/2 2012/1/1 1.1mil 2.61mil for 889 days 2012/1/25 2.52mil (SoftBank Mobile) 2012/1/25 74k * 2012/2/9 up to 1.3mil 20

46. Slide 46: No.1 Network in the Smartphone Era

    No.1 Network in the Smartphone Era 1. No.1 in smartphone connectivity 2. No.1 in high-speed services 45

47. Slide 47: TDD-LTE Base Stations

    TDD-LTE Base Stations 42k Rapid increase *AXGP (highly compatible with TDD-LTE) base stations. July 2012 Oct. 2013 46

48. Slide 48: Android Device Average Data Throughput

    Android Device Average Data Throughput 14.8 Mbps 15.3 Mbps Android device data throughput 8.1 Mbps No.1 (Source) RBB TODAY (Aug. 29, 2013) Data taken from Apr. 1 - June 30, 2013 http://www.rbbtoday.com/article/2013/08/29/111166.html 47

49. Slide 49: FDD-LTE Base Stations

    FDD-LTE Base Stations 29k Rapid increase July 2012 Oct. 2013 48

50. Slide 50: Double LTE at double speed

    75Mbps 75Mbps Double LTE at double speed 49

51. Slide 51: Download Speed

    Download Speed (Mbps) Tokyo (Mbps) Osaka (Mbps) Nagoya 20 20 30 15 15 20 10 10 10 5 5 Double LTE Double LTE Double LTE at double at double at double speed speed speed 0 0 0 Mar. 6 Oct. 9 Mar. 6 Oct. 9 Mar. 6 Oct. 9 Measured by SoftBank Mobile NTT DOCOMO: Galaxy SIII α, au: Galaxy SIII Progre, SoftBa

52. Slide 52: iPhone 5c Speed Survey: Number of wins at railway stations

    iPhone 5c Speed Survey: Number of wins at railway stations (average downlink speed) 427stations (out of 500 stations) No.1 in 500 stations survey 27stations 46 stations (Source) Cross Marketing (Sept. 30, 2013) Surveyed at top 500 stations by number of daily commuters in Japan 51

53. Slide 53: iPhone 5c Downlink Speed Survey

    iPhone 5c Downlink Speed Survey 11.9Mbps 6.7Mbps No.1 5.8Mbps in 500 stations survey (Source) Cross Marketing (Sept. 30, 2013) Surveyed at top 500 stations by number of daily commuters in Japan 52

54. Slide 54: Triple LTE - Coming next spring

    Better Connectivity in High-speed Communications Triple LTE - Coming next spring + + 53

55. Slide 55: Consolidated CAPEX (Japan)

    Consolidated CAPEX (Japan) (JPY bn) eAccess 808.2 780.0 CAPEX ahead of schedule WCP 110.6 WILLCOM 697.6 580.0 516.3 480.0 420.5 2010 ’11 ’12 ’13 ’14 ’15 (FY) * FY2012 excludes FUKUOKA YAHUOKU! DOME related CAPEX. * Excludes Sprint CAPEX WCP: Wireless City Planning (Japanese-GAAP) Plan (IFRSs) 54

56. Slide 56: Sprint Turnaround

    Sprint _/ Turnaround

57. Slide 57: Net Additions (Sprint Platform)

    (mil) 3 Net Additions (Sprint Platform) Turnaround trend 2 1 0 - 0.1 - 0.5 -1 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2010 2011 2012 2013 (FY) * Combined consolidated U.S. GAAP results presented to be consistent with Sprint’s public disclosure and presentation of Q3 results. 56

58. Slide 58: Total Postpaid ARPU: Best ever

    (USD) Total Postpaid ARPU 65 USD 63.69 60 Best ever 55 50 2009 ’10 ’11 ’12 ’13 (FY) * Total Retail Postpaid ARPU * Combined consolidated U.S. GAAP results presented to be consistent Q3 Q3 Q3 Q3 Q3 with Sprint’s public disclosure and presentation of Q3 results. 57

59. Slide 59: Q3 Postpaid Sales Mix

    Q3 Postpaid Sales Mix Highest ever 92% * The sales mix is as a percent of handset devices (i.e. excluding tablets, MBB). * Combined consolidated U.S. GAAP results presented to be consistent with Sprint’s public disclosure and presentation of Q3 results. 58

60. Slide 60: Service Revenue (Sprint Platform)

    Service Revenue (Sprint Platform) (USD bn) USD 21.5bn USD 20.1bn Steady growth 2009 ’10 ’11 ’12 ’13 (FY) * Combined consolidated U.S. GAAP results presented to be consistent with Q1-3 Q1-3 Q1-3 Q1-3 Q1-3 Sprint’s public disclosure and presentation of Q3 (Jan. - Sept.) results. 59

61. Slide 61: Consolidated Adjusted EBITDA

    (USD bn) Consolidated Adjusted EBITDA Turning around USD 4.3bn USD 3.9bn 2006 ’07 ’08 ’09 ’10 ’11 ’12 ’13 (FY) * Combined consolidated U.S. GAAP results presented to be consistent with Q1-3 Q1-3 Q1-3 Q1-3 Q1-3 Q1-3 Q1-3 Q1-3 Sprint’s public disclosure and presentation of Q3 (Jan. - Sept.) results. 6

62. Slide 62: Toward Further Growth of Sprint

    Toward Further Growth of Sprint 1. Network improvement 2. OPEX efficiencies 3. Handset procurement cost reduction 4. Sales enhancement 61

63. Slide 63: Presentation to Sprint directors and above

    Presentation to Sprint directors and above (September, 2013 at Sprint Headquarters) 62

64. Slide 64: One Team, One Vision

    One Team, One Vision SoftBank Sprint

65. Slide 65: One Team, One Vision

    1,300 Internet Companies One Team, One Vision 64

66. Slide 66: Toward No.1 Content in the Smartphone Era

    Toward No.1 Content in the Smartphone Era 65

67. Slide 67: Arrival of the mobile Internet era

    Smartphone POP. 3.7bn (Worldwide) 3.1bn Arrival of the mobile 2.6bn Internet era 2.0bn 1.4bn 0.9bn 2011 2012 2013 2014 2015 2016 (FY) (Source) Seed Planning Press Release (July 26, 2012 ) Forecast 66

68. Slide 68: Aiming to be Global No.1 in e-Commerce

    Aiming to be Global No.1 in e-Commerce 67

69. Slide 69: Yahoo Japan EBIT: Growth re-accelerating

    Yahoo Japan EBIT (JPY bn) (Operating Income) JPY 97.9bn JPY 85.4bn Growth re-accelerating 15% increase 1996’97 ’98 ’99 ’00 ’01 ’02 ’03 ’04 ’05 ’06 ’07 ’08 ’09 ’10 ’11 ’12 ’13 (FY) * Yahoo Japan Corporation’s operating income Japanese-GAAP H1 H1 H1 H1 H1 H1 H1 H1 H1 H1 H1 H1 H1 H1 H1 H1 H1 H1 68

70. Slide 70: Free fees for e-commerce stores

    (announced on Oct. 7, 2013) Monthly tenant fee Monthly tenant fee Auction fee Contingent fee Commission upon reservation System fee Bidding fee Free Free Free 69

71. Slide 71: No restriction on customer contact

    (announced on Oct. 7, 2013) Mail to Lead customers customers to own website No No restriction restriction 70

72. Slide 72: Number of Stores: Outpaced Rakuten

    Number of Stores 75k (Oct. 21) Outpaced Rakuten 40k (Rakuten) 20k (“e-Commerce Revolution” announced on Oct. 7) * Created by SoftBank Corp. based on respective companies’ publicly available historical information. * 75k: sum of existing shopping stores and pre-applications (Cumulative as of Oct. 21,

73. Slide 73: Pre-applications for Auction Stores

    Pre-applications for Auction Stores (Per day) 30 (Yahuoku) Pre-applications for auction stores 30x 1 Before Following “e-Commerce Revolution” announcement * Index assuming the pre-applications for auction stores pre-announcement was 1. (Oct. 8) 72

74. Slide 74: No.1 e-Commerce Transaction Value

    By 201X Product Line-up No.1 e-Commerce Transaction Value No.1 73

75. Slide 75: No.1 e-Commerce Transaction Value

    As of 2013 Product Line-up No.1 e-Commerce Transaction Value No.1 74

76. Slide 76: Transaction Volume: Rapid growth

    (JPY t) Transaction Volume JPY 16.1t 18 (RMB 1t) 12 Rapid growth JPY 7.5t (Market cap. JPY 6.7t) 6 JPY 6.1t (Market cap. 16.4t) JPY 1.4t (Market cap. 1.8t) 0 Created by SoftBank Corp. based on respective companies’ publicly (CY) available historical information ( USD 1 = JPY 100.) 2007 ’08 ’09 ’10 ’

77. Slide 77: Transaction Volume Growth Rate

    Transaction Volume Growth Rate (YoY) 64% Transaction volume growth No.1 27% 10% Created by SoftBank Corp. based on respective companies’ publicly available information (2011 and 2012) Amazon.com: consolidated net sales, eBay: total transaction volume of Market Place segment 76

78. Slide 78: Alibaba Group Net Income: 2.8x YoY

    Net Income JPY 137.6bn (6-month period) 2.8x YoY JPY 49.4bn ’08 ’09 ’10 ’11 ’12 ’13 (CY) Created by SoftBank Corp. based on disclosed material by Yahoo! Inc. Jan.-June Jan.-June Jan.-June Jan.-June Jan.-June Jan.-June USD = JPY 100 Net income attributable to Alibaba Group 77

79. Slide 79: Net Income Growth: No.1

    Net Income Growth Rate (YoY) 179% Net income growth No.1 4% -45% Created by SoftBank Corp. based on respective companies’ publicly available information * Comparison of net income in FY2012 Jan. - June and FY13 Jan. - June 78

80. Slide 80: Winners in mobile games will become winners in mobile content

    Winners in mobile games will become winners in mobile content 79

81. Slide 81: Games are the top mobile content

    Breakdown of App Revenue (Worldwide) App Store Others Others Games Games 82% 73% Games are the top mobile content Created by SoftBank Corp. based on App Annie and IDC “Portable Gaming Spotlight, 2Q 13” Share of App Store Consumer Spending 80

82. Slide 82: Mobile Game Market: Rapid growth

    Mobile Game Market USD 29.6bn (Worldwide) Mobile game market Rapid growth USD 12.3bn 2011 2012 2013 2014 2015 2016 2017 (CY) (Source) IDG Estimate 81

83. Slide 83: Aiming to be Global No.1 in Mobile Games

    Aiming to be Global No.1 in Mobile Games 82

84. Slide 84: Puzzle & Dragons App Downloads

    Puzzle & Dragons App Downloads Over 20mil (Domestic) Continued growth (reached over 2 million overseas) Apr. June Aug. Oct. Dec. Feb. Apr. June Aug. Oct. 2012 2013 83

85. Slide 85: GungHo EBIT: 28x YoY

    GungHo EBIT (Operating Income) JPY 68.5bn EBIT (Operating Income) 28x YoY JPY 2.4bn Q1-3 Q1-3 Q1-3 Q1-3 Q1-3 Q1-3 2008 2009 2010 2011 2012 2013 (FY) *GungHo Online Entertainment, Inc.’s operating income (Japanese-GAAP 84

86. Slide 86: Global No.1 Mobile Game Company

    Global No.1 * Mobile Game Company * AppAnnie “Top Publishers by Monthly Game Revenue iOS” 85

87. Slide 87: Supercell Transaction Method

    Transaction Method 80% 20% (USD 1.224bn) (USD 0.306bn) Buyer SPC (Special Purpose Company) 51% (USD 1.53bn) Supercell 86

88. Slide 88: Ilkka Paananen, CEO

    Ilkka Paananen CEO 87

89. Slide 89: The Best People Make the Best Games

    The Best People Make the Best Games 88

90. Slide 90: Our Mission

    Our Mission Supercell aims to be the first truly global games company and the #1 games company worldwide 89

91. Slide 91: No.1 on iOS with only Two Games

    1 on iOS with only Two Games • Reached 1 in 139 1 iOS countries • 1 iOS game publisher by • Reached 1 in 102 game revenue in August 2013 countries 90

92. Slide 92: Clash of Clans: No.1 in countries

    No.1 in 139 countries Source: App Annie Clash of Clans: Highest Grossing Game Ranking for iPad 91

93. Slide 93: Hay Day: No.1 in countries

    No.1 in 102 countries Source: App Annie Hay Day: Highest Grossing Game Ranking for iPad 92

94. Slide 94: Video

    Video 93

95. Slide 95: Game Apps Revenue Global Ranking: Megahit on iOS

    iOS Game Apps Revenue Global Ranking Rank Publisher/Game 1 Supercell Clash of Clans Megahit 2 King Candy Crush Saga on iOS GungHo Online Entertainment, Inc. 3 Puzzle & Dragons Supercell 4 Hay Day Electronic Arts 5 The Simpsons™: Tapped Out Created by SoftBank Corp. based on App Annie, Top Publishers

96. Slide 96: No.1 for 7 consecutive months

    Top Publishers by Monthly Game Revenue (iOS) Feb. Mar. Apr. May June July Aug. 1 2 King.com King.com King.com 3 Electronic Arts Electronic Arts King.com King.com 4 Electronic Arts Electronic Arts Electronic Arts Electronic Arts Electronic Arts King.com King.com No.1 for 7 consecutive months * Create

97. Slide 97: Launched on Android

    Launched on Android (Oct. 7, 2013) Top-10 in two weeks from launch in both U.S. and Japan 96

98. Slide 98: Making history

    al [ty Bac FO Making history

99. Slide 99: SoftBank BRC

    SuUP SoftBank BRC ESI 13

100. Slide 100: Toward No.1 in mobile games

     Toward No.1 in mobile games 99

101. Slide 101: Global No.1 mobile device distributor

     Global No.1 mobile device distributor - Over 100 manufacturers - Over 200 mobile operators - Over 50k retailers 100

102. Slide 102: Transaction Method

     Transaction Method Mr. Marcelo Claure (Founder and CEO of Brightstar) 70% 30% * * (initially 57%) (initially 43%) * After exercising the warrant (progressively over a 5 year period) * Structure is subject to regulatory approvals and other closing conditions * Details shown in the press release annou

103. Slide 103: Conclusions

     Conclusions 102

104. Slide 104: Conclusions

     Conclusions 1. Domestic business - On track for further growth 2. U.S. business - Turning around On track for operating income JPY 1t 103

105. Slide 105: EBIT: 67% increase

     EBIT 715.1 (Operating Income) (JPY bn) Consolidated EBIT One-time gains from making Record high for 249.0 GungHo and WILLCOM subsidiaries, etc. 429.1 488.4 8 consecutive periods 67% increase 0 - 22.3 Sprint segment 2003 ’04 ’05 ’06 ’07 ’08 ’09 ’10 ’11 ’12 ’13 (FY) H1 H1 H1 H1 H1 H1 H1 H1 H1 H1 H1 Ja

106. Slide 106: Forecast

     Forecast 105

107. Slide 107: FY2014 Consolidated Earnings Forecast

     FY2014 Consolidated Earnings Forecast Net sales JPY 7t EBITDA JPY 2t EBIT JPY 1t (Operating income) (excluding one-time gain) 106

108. Slide 108: Toward global No.1 in every aspect

     Toward global No.1 in every aspect 107

109. Slide 109: Copyright (C) 2013 SoftBank Corp.

     Copyright (C) 2013 SoftBank Corp., All rights reserved. 108

110. Slide 110: Adoption of IFRSs and definition of terms

     1. Adoption of IFRSs SoftBank Corp. has adopted the International Financial Reporting Standards (IFRSs) from the three-month period ended June 30, 2013 (transition date: April 1, 2012). The financial data for the three-month period ended June 30, 2012 (“YoY”) and the fiscal year ended March 31, 2013

SoftBank — H1 FY2013 Earnings Presentation on 6ix