Softbank Corp. · TSE:9434
Softbank — 9M FY2019 Earnings Presentation
59 slides from Softbank's earnings presentation, Feb 7, 2020
Slide 1: Earnings Results for the Nine Months Ended December 31, 2019
Earnings Results for the Nine Months Ended December 31, 2019 SoftBank Corp. February 7, 2020
Slide 2: Disclaimer
Disclaimer Important Notice Regarding Forward Looking Statements and Other Information This document is based on the information available to SoftBank Corp. (“we” or “the Company”) as of the time hereof and assumptions which it believes are reasonable. Statements contained herein that are not histor
Slide 3: Revenue
Revenue [JPY bn] 3,618.0 3,500.0 3,454.5 ZHD impact 3,000.0 2,776.7 677.8 Up 30% 2,500.0 2,000.0 1,500.0 (Post ZHD adj, Up 5%) 1,000.0 500.0 0.0 (Notes) FY18 Q1-Q3 FY18 Q1-Q3 FY19 Q1-Q3 Actuals for FY2018 have been adjusted retrospectively to have consolidated Z Holdings Corporation (formerly Yahoo
Slide 4: Revenue by Segment
Revenue by Segment [JPY bn] 3,618.0 3500 3,454.5 3000 2,035.9 Consumer 2,010.0 Increased 2500 2000 1500 across all segments 470.9 Enterprise 455.8 1000 291.2 363.7 Distribution 500 697.5 747.4 Yahoo, others 0 FY18 Q1-Q3 FY19 Q1-Q3 (Note) Actuals for FY2018 have been adjusted retrospectively to have
Slide 5: Operating Income
Operating Income [JPY bn] 795.1 729.5 7,000 ZHD impact 634.9 94.6 6,000 5,000 4,000 Up 25% 3,000 (Post ZHD adj, Up 9%) 2,000 1,000 0 FY18 Q1-Q3 FY18 Q1-Q3 FY19 Q1-Q3 (Note) Actuals for FY2018 have been adjusted retrospectively to have consolidated (Prior to adj) (Post adj) ZHD from April 1, 2018 4
Slide 6: Operating Income by Segment
Operating Income by Segment [Mil] 795.1 765.0 729.5 Increased 665.0 565.0 567.5 465.0 547.6 across all segments 365.0 Consumer +20.0 Smartphone subscriber increase, etc. Enterprise +3.3 Growth in Business solution and others, etc. 265.0 77.1 Distribution +2.6 Strong sales of ICT related products 165
Slide 7: Net Income
Net Income [JPY bn] 423.3 436.6 4,000 395.9 ZHD impact 3,500 27.4 Up 10% 3,000 2,500 (Post ZHD adj, Up 3%) 2,000 1,500 1,000 500 0 FY18 Q1-Q3 FY18 Q1-Q3 FY19 Q1-Q3 (Notes) Net Income: net income attributable to owners of SoftBank Corp. (Prior to adj) (Post adj) Actuals for FY2018 have been adjusted
Slide 8: Consolidated Results
Consolidated Results [JPY bn] FY2018 FY2018 FY2019 YoY YoY % Q1-Q3 Q1-Q3 Q1-Q3 (Prior to adj) (Post adj) (vs Post adj) (vs Post adj) Revenue 2,776.7 3,454.5 3,618.0 +163.5 +5% Operating Income 634.9 729.5 795.1 +65.6 +9% Net Income 395.9 423.3 436.6 +13.3 +3% (Notes) Net Income: net income attributa
Slide 9: FY2019 Forecast (Revised)
FY2019 Forecast (Revised) [JPY bn] Revenue and Operating Income Revised Upward FY2019 FY2019 Forecast Forecast Change Reasons (BOP1) (Current) Revenue 4,800.0 4,820.0 +20.0 Smartphone subscriber increase Growth in Business Operating solution and others Income 890.0 900.0 +10.0 同上 No revision due to
Slide 10: Telecom Business
Telecom Business 9
Slide 11: Consumer: Revenue
Consumer: Revenue [JPY bn] 2,010.0 2,035.9 2,000.0 Sales of goods 527.6 474.7 and others Revenue from handset sales declined Telecom Service Revenue 1,500.0 286.6 Broadband 268.3 (Mobile and Broadband) Up 5％ 1,000.0 1,214.1 1,274.6 Mobile 500.0 0.0 FY18 Q1-Q3 FY19 Q1-Q3 10
Slide 12: Smartphone Cumulative Subscribers
Smartphone Cumulative Subscribers [Mil] 23.48 21.46 2,000 1,500 Up 9% 1,000 Net adds for all brands 500 Accelerated increase FY19Q3 2.02 mil FY19Q2 1.94 mil 0 FY19Q1 1.74 mil FY16 Q3 FY17 Q3 FY18 Q3 FY19 Q3 (Notes) Including enterprise subscribers. The increase of each quarter refers to the increase
Slide 13: Smartphone Churn Rate
Smartphone Churn Rate [%] 1.00 0.85 0.79 0.80 Record low 0.60 0.40 0.53 0.20 0.00 FY16 Q3 FY17 Q3 FY18 Q3 FY19 Q3 (Notes) Churn rate= Number of churns / Number of active subscribers Figures in this page show the average monthly churn rate for each quarter 12
Slide 14: Broadband Cumulative Subscribers
Broadband Cumulative Subscribers [Mil] 7.52 7.78 7.00 6.00 5.00 4.00 6.25 Up 9% 3.00 5.72 2.00 1.00 0.00 FY16 Q3 FY17 Q3 FY18 Q3 FY19 Q3 (Note) “SoftBank Air” subscribers are included in “SoftBank Hikari” subscribers 13
Slide 15: 3G Service Termination in 2024 announced
3G Service Termination in 2024 announced Evolvement of mobile communication services 2G Business Resources 1994 ~ 2010 moving further to 5G 3G 2002 ~ Jan 2024 4G 2012 ~ Late March 2020 ~ 14
Slide 16: SoftBank
SoftBank
Slide 17: Initiatives for 5G Services: Sports Watching
Initiatives for 5G Services Sports Watching 5G pre-service in high school basketball championship (December 2019) AR × Watching Experience Real-time Analysis × Video Streaming 5G experience seats in Tablets in the venue the venue (Note) High school basketball championship: SoftBank Winter Cup 2019 T
Slide 18: Initiatives for 5G Services: Gaming Experience
Initiatives for 5G Services Gaming Experience 5G × Cloud Gaming Ultra-high performance MEC server process Transmit Receive operating Real-time 5G communication processing information result as video Beta test in progress for 5G commercialization (Note) MEC：Multi-access Edge Computing 17
Slide 19: Initiatives for 5G Services: Live Event Experience
Initiatives for 5G Services Live Event Experience Virtual XR × Artists × Real Venue VR × Live Streaming DIVE XR FESTIVAL LiVR In September 2019, at Chiba / Makuhari Messe Launched AKB48 group channel 14,000 people attended in two days VR cameras installed at the front row of each theater Live event
Slide 20: Enterprise: Revenue
Enterprise: Revenue [JPY bn] 455.8 470.9 450.0 Up 3% 400.0 350.0 198.2 206.0 Mobile 300.0 Business solution and others 250.0 grew 19% as growth driver 200.0 146.5 Fixed-line 158.0 150.0 AI RPA Digital 100.0 Cloud marketing Business solution 99.6 118.4 and others 50.0 Robotics IoT Network 0.0 Securit
Slide 21: Enterprise: Operating Income
Enterprise: Operating Income [JPY bn] 80.0 73.7 77.1 70.0 Temporary factor 8.6 60.0 50.0 40.0 Up 18% 30.0 65.1 excluding temporary factor 20.0 (Up 5% including temporary factor) 10.0 0.0 FY18 Q1-Q3 FY19Q1-Q3 (Note) FY18 results includes a reversal of an allowance for losses on orders with the expira
Slide 22: Enterprise: Revenue Business Solution and Others
Enterprise: Revenue Business Solution and Others Cloud Digital Marketing IoT 1.3 times in 1 year 100 90 1.2 times in 1 year 100 90 4.2 times in 1 year 200 80 80 70 70 150 60 60 50 50 100 40 40 30 30 50 20 20 10 10 0 0 0 FY18 Q1-Q3 FY18 Q1-Q3 FY19 Q1-Q3 FY19 Q1-Q3 FY18 Q1-Q3 FY19 Q1-Q3 FY18 Q1-Q3 FY1
Slide 23: Digital Marketing
Digital Marketing Established consulting company for utilizing data in addition to advertising business Investment Structure Service Provision Data collection / Marketing Business storage / integration support support Marketing with Increased Incubation via INCUDATA Corp. more depth sales data utili
Slide 24: IoT Solutions
IoT Solutions Providing various solutions that contribute to solving social issues Real-time monitor Analysis of statistical data Fluorescent light integrated for LP gas meters1 on people flow2 security camera service3 Communication board SIM card Camera Crime deterrence Automation of meter reading
Slide 25: 5G Initiatives in Enterprise Business
5G Initiatives in Enterprise Business Tunnel Construction Unmanned Machinery× Remote Operation IoT Sensor × Remote Monitoring HD video Full HD cameras + various sensors Toxic gas, etc. 5G 5G Various sensors ature … Gas Temper Operation room Monitoring room On-site tunnel construction On-site tunnel
Slide 26: Promote solutions to social issues
Accelerate digital transformation Promote solutions to social issues 25
Slide 27: 26
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Slide 28: Yahoo: Revenue
Yahoo: Revenue [JPY bn] 759.6 708.1 700.0 224.8 Media 600.0 222.4 Up 7% 500.0 400.0 Commerce business Commerce 300.0 534.8 continues to grow steadily 485.7 and Other 200.0 100.0 0.0 FY18 Q1-Q3 FY19 Q1-Q3 (Note) ZHD made ZOZO, Inc that operates ZOZOTOWN - an online fashion shopping website - a subsid
Slide 29: Yahoo: Operating Income
Yahoo: Operating Income ZHD Operating Income [JPY bn] 476 47.9 June 2019 395 ZHD Consolidation 400 355 366 362 400 +200 20.0 200 200 208 Turnaround +11.3 after SoftBank consolidated ZHD +4.0 0 00 -4.6 -7.2 -11.4 Operating income -16.3 -17.2 Change year on year -20.0 -200 Q1 Q2 Q3 Q4 Q1 Q2 Q3 FY18 FY
Slide 30: Yahoo: e-Commerce Transaction Value
Yahoo: e-Commerce Transaction Value Commerce [JPY bn] 690.4 6,000 602.7 5,000 4,000 Up 15% Impact from ZOZO consolidation (2 months) 3,000 2,000 Steady growth in travel business, etc. 1,000 0 2016年度 FY16 Q3 17年度Q3 FY17 Q3 18年度Q3 FY18 Q3 19年度Q3 FY19 Q3 (Source) ZHD Earnings Results Materials as of Fe
Slide 31: Good Shopping Day Results
“Good Shopping Day” Results Transaction Value 140 PayPay Mall contributed to reach 120 100 80 60 1.4 times 40 20 0 High value products also selling well 2018年11月11日 November 11, 2018 2019年11月11日 November 11, 2019 (Note) Transaction value is the total of Yahoo! Shopping and PayPay Mall. PayPay Mall i
Slide 32: Yahoo! JAPAN Monthly Logged-in User IDs
Yahoo! JAPAN Monthly Logged-in User IDs Media [Mil] 50.11 5,000 47.09 4,000 3,000 Up 6% 2,000 1,000 0 2016年度Q3 2016年度 FY16 17年度Q3 Q3 FY17 Q3 18年度Q3 FY18 Q3 19年度Q3 FY19 Q3 (Note) Number of Yahoo! JAPAN IDs logged in each month at the end of the quarter. (Source) ZHD Earnings Results Materials as of F
Slide 33: Business Integration between Z Holdings and LINE
Business Integration between Z Holdings Corporation and LINE Corporation announced November 2019 (Note) Concluded business integration agreement on December 23, 2019 32
Slide 34: Business Integration Planned in October 2020
Business Integration Planned in October 2020 Structure after integration Ownership ratio 50％ 50％ Minority Shareholders Joint Venture 34.7％ 65.3％ SoftBank Consolidated Subsidiary 100％ 100％ 33
Slide 35: Transformation to the AI Technology Company
Image after Transformation to the AI Technology Company business integration Other Group Companies Users monthly 83.00 mil monthly 67.43 mil ー Media Commerce FinTech SNS ー ー (Note) A portion of services provided is listed. (Source) LINE users: number of monthly active users in Japan, Earnings Result
Slide 36: Create a future that others cannot repeat
Communication AI IoT Media/Advertisement Create a future that others cannot repeat Commerce Payment FinTech SNS 35
Slide 37: Growth in New Businesses
Growth in New Businesses 36
Slide 38: PayPay
Smartphone Payment Service PayPay 37
Slide 39: PayPay Cumulative Registered Users
PayPay Government Cumulative Registered Users Consumer Return* / Convenient PayPay [Mil] 20.00 Monthly changing Maintain a high growth rate campaign 24.0 mil Second 15.00 JPY10bn campaign Exceeded JPY10bn 10.00 Give out February 2, 2020 campaign 5.00 * Government Consumer Return refers to the Point
Slide 40: PayPay Number of Payments per Month
PayPay Number of Payments per Month 100+ [Mil] 10,000 Rose dramatically 2.5 times 5,000 50.00 42.00 in three months since September 2019 0 Jan Mar Jun Sep Dec 2019 (Source) Data by PayPay Corporation 39
Slide 41: PayPay App
PayPay App App Store Google Play BEST OF 2019 Best of 2019 Japanese version User voting section Best Free App Ranking App category Number of Downloads Best Award No. 1 Useful for life section Grand Award The most downloaded app in 2019 (Notes) Most downloaded apps in 2019: 1st place in “Best Free Ap
Slide 42: PayPay: Store Information Delivery Service started
PayPay: Store Information Delivery Service started PayPay My Store Attracting customers Coupon and discount information Evaluation and review Merchants Analysis Users Evolving from payment app to marketing tool 41
Slide 43: PayPay: Evolving to Super App
PayPay: Evolving to Super App Mini App First Step Taxi-hailing is in service with PayPay app Completed service link with DiDi taxi Plan to collaborate with other taxi companies Taxi hailing 42
Slide 44: PayPay: Full-scale entry into financial services in 2020
PayPay To establish a revenue model with full-scale entry into financial services in 2020 Personal loan Business loan Postpay (revolving payment) Investment Insurance 43
Slide 45: DiDi
AI-enabled Taxi-hailing Platform DiDi Case studies presented herein are for illustrative purposes only, have been selected in order to provide examples of the types of investments made by SBIA and do not purport to be a complete list thereof. It should not be assumed that investments made in the fut
Slide 46: DiDi Service Areas
DiDi Service Areas 23 prefectures Rapid (As of January 31, 2020) expansion Launched the service in 20 prefectures in 2019 (Source) Provided by DiDi Mobility Japan The information contained herein is provided for illustrative purposes only. The information presented here was provided DiDi. Nothing he
Slide 47: DiDi Number of Taxi Partners
DiDi Number of Taxi Partners 533 500 [Number of taxi companies] 459 Number of taxi partners grew 400 300 200 261 c. 10 times 135 in the last year 100 49 0 (Source) DiDi Mobility Japan (Note) Number of taxi partners refers to the number of taxi companies that have signed Jan 1月 Apr 4月 Jul 7月 Oct 10月
Slide 48: WeWork
SBG and SVF1 investment Community Centric Workspace WeWork Case studies presented herein are for illustrative purposes only, have been selected in order to provide examples of the types of investments made by SBIA and do not purport to be a complete list thereof. It should not be assumed that invest
Slide 49: WeWork Japan Membership
WeWork Japan Membership in Japan 22,000 [Number of memberships] 20,000 20,000 15,000 22,000 in less than 2 years 10,000 10,000 since launch in February 2018 5,000 0 0 (Source) Provided by WeWork Japan (Note) Memberships at the beginning of each month Mar Jun Sep Dec Mar Jun Sep Dec 2018 2019 The inf
Slide 50: WeWork Japan locations in cities
WeWork Japan 26 locations in 6 cities (As of December 2019) Tokyo NEW Kanagawa Osaka Hyogo Fukuoka Aichi Yokohama Namba Sannomiya Daimyo Midosuji Nakasu Umeda Shibuya Scramble Square opened in December 2019 (Source) Provided by WeWork Japan The information herein is provided for illustrative purpose
Slide 51: MONET
Next-generation Mobility Service MONET 50 50
Slide 52: MONET collaborates with 31 municipalities
MONET Asahikawa, Hokkaido Shibetsu, Hokkaido Collaborations Abiracho, Hokkaido (As of end of January 2020) Shinhidaka Hokkaido MONET collaborates with Semboku, Akita Fukuyama, Hiroshima Minamiaikimura, Nagano Koumimachi, Nagano Ina, Nagano Kaga, Ishikawa 31 municipalities 5 prefectures Fuchu, Hirosh
Slide 53: MONET Consortium Member Companies
MONET Consortium Member Companies 500 489 450 400 c. 500companies 350 across various industries 300 250 200 150 100 88 50 0 2019年3月末 End of March, 2019 2020年1月末 End of January, 2020 52
Slide 54: OYO Hotels
Innovative Hotel Service OYO Hotels Case studies presented herein are for illustrative purposes only, have been selected in order to provide examples of the types of investments made by SBIA and do not purport to be a complete list thereof. It should not be assumed that investments made in the futur
Slide 55: OYO Hotels Japan Number of Hotel Rooms
OYO Hotels Japan Number of Hotel Rooms 5,762 5,000 Increased in room numbers 2,500 while strengthening corporate governance seeking solid growth (Source) Provided by OYO Hotels Japan 0 (Note) Number of Hotel Rooms: Hotel rooms opened under OYO brand Apr May 4月 5月 Jun 6月 Jul 7月 Aug 8月 Sep Oct 11月 9月
Slide 56: SoftBank New Business Management
SoftBank New Business Management Main Activities in FY2019 Expansion New Entry Exit Smartphone payment No. 1 in one year since launch Digital marketing consultant business with Gain on sales Arm and Hakuhodo Deployment of global JPY 11.8 bn * hotel chain business in Japan Main Items * * * Collaborat
Slide 57: SoftBank Growth Strategy
SoftBank Growth Strategy New Businesses Beyond Carrier AI / Technologies Cutting-edge business models Yahoo Telecom Business Smartphone subscriber growth Broadband subscriber growth New infrastructure 56 56
Slide 58: Information Revolution — Happiness for everyone
Information Revolution — Happiness for everyone
Slide 59: SoftBank
SoftBank