Slide 1: Earnings Results for the Fiscal Year Ended March 31, 2017
Earnings Results for the Fiscal Year Ended March 31, 2017 Investor Briefing May 12, 2017 SoftBank Group 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
Accounting 3
Slide 4: Segments and Core Companies
Segments and Core Companies <FY15> <FY16> Reportable Reportable Core companies Core companies segments segments Domestic SoftBank Domestic SoftBank Telecommunications Wireless City Planning Telecommunications Wireless City Planning Sprint Sprint Sprint Sprint Yahoo Japan Yahoo Japan Yahoo Japan ASKU
Slide 5: Consolidated P/L Summary (IFRSs)
Consolidated P/L Summary (IFRSs) <JPY bn> P/L item FY15 FY16 Change Main breakdown Continuing operations Increase in net sales (for customers) of Domestic Telecommunications segment +50.0 Due to increases in product and other sales and telecom service revenue Decrease in net sales (for customers) of
Slide 6: (Reference) Income on Equity Method Investments Related to Alibaba
(Reference) Income on Equity Method Investments Related to Alibaba Alibaba SoftBank Group US-GAAP IFRSs (CNY mil) (JPY bn) Income and loss Reconciliation Income on equity Net income Net income Ownership on equity method Exchange rate method investments to IFRSs investments FY15/ (*1) JPY 19.56 2,893
Slide 7: (Reference) Sale of a Portion of Alibaba Shares and Variable Prepaid Forward Contract
(Reference) Sale of a Portion of Alibaba Shares and Variable Prepaid Forward Contract <Consolidated> SoftBank Group SoftBank Group International Payment of proceeds West Raptor Holdings, LLC APAC (Singapore) Transfer of Alibaba USD 5.4bn for advance shares 3.4% of Alibaba shares received for the sal
Slide 8: (Reference) Variable Prepaid Forward Contract for Alibaba Shares - 1
(Reference) Variable Prepaid Forward Contract for Alibaba Shares - 1 At signing of contract 3 Years total At settlement (3 years later) （initial recognition） Amortized (1) Interest paid cost USD 0.3bn Derivative assets (2) Derivative loss USD 0.9bn USD 0.9bn (3) Gain on Financial Financial sale liab
Slide 9: (Reference) Variable Prepaid Forward Contract for Alibaba Shares - 2
(Reference) Variable Prepaid Forward Contract for Alibaba Shares - 2 At signing of contract Valuation gain (loss) on derivatives over 3 years 3 Years total June 1, 2016 Q1 Q2 Q3 Q4 Aggregate share price share price share price share price share price till time of USD 76.69 USD 79.53 USD 105.79 USD 8
Slide 10: (Reference) Collar Transaction Embedded in Variable Prepaid Forward Contract
(Reference) Collar Transaction Embedded in Variable Prepaid Forward Contract Trust (=investors) (Number of shares) are subject to the downside when the Number of shares to be delivered after share price falls 3 years will vary within USD 6.6bn equivalent range At signing of contract 86mil shares A C
Slide 11: (Reference) Gain or Loss at Measurement of Fair Value of Investments
(Reference) Gain or Loss at Measurement of Fair Value of Investments by SBG and SBGC (other than subsidiaries or equity method) (1) Financial assets at FVTPL (Fair Value Through Profit or Loss) The fair values are measured at the end of each quarter, with changes to be recognized as net income or lo
Slide 12: (Reference) Difference in Tax Rate and Loss Carryforwards
(Reference) Difference in Tax Rate and Loss Carryforwards Reconciliation Between Statutory Tax Rate and Effective Tax Rate FY15 FY16 Rate (%) Amount (JPY bn) Rate (%) Amount (JPY bn) Income before income tax 919.2 712.5 Statutory income tax rate 33.1% 303.9 31.7% 225.8 (main factors of difference) -
Slide 13: Consolidated B/S Summary - Assets
Consolidated B/S Summary - 1 (IFRSs) <JPY bn> B/S As of As of Main items Mar. 2016 Mar. 2017 Change Main breakdown item 5,550.3 5,724.0 +173.7 Cash and cash 2,569.6 2,183.1 -386.5 Current assets equivalents Sprint 297.6 322.0 +24.4 Trade and other 1,914.8 2,121.6 +206.8 receivables Increase in comme
Slide 14: (Reference) PPA Relating to ARM Acquisition
(Reference) PPA Relating to ARM Acquisition Before PPA After PPA completion (Q3) Completion*1 Yearly amortization Goodwill Goodwill amount (plan) GBP 0.37bn JPY 3.21t JPY 2.65t (GBP 23.3bn) (GBP 19.2bn) Technology JPY 537.7bn Amortization period Total amount of 8-20 years (GBP 3.9bn) amortization in
Slide 15: Consolidated B/S Summary - Breakdown of Goodwill
Consolidated B/S Summary - 2 (IFRSs) - Breakdown of Goodwill <JPY bn> B/S As of As of Change item Main items Mar. 2016 Mar. 2017 Changes in Outline Others exchange rate 1,609.8 4,175.5 +26.7 +2,539.0 ARM - 2,687.9 +37.0 +2,650.9 Newly consolidated from Sept. 2016 SoftBank 907.5 907.5 - - Goodwill Sp
Slide 16: Consolidated B/S Summary - Breakdown of Intangible Assets
Consolidated B/S Summary - 3 (IFRSs) - Breakdown of Intangible Assets <JPY bn> B/S As of As of Change Main items Changes in Outline item Mar. 2016 Mar. 2017 Amortization Other exchange rate FCC licenses (non-amortized) 4,060.8 4,100.7 - -13.9 +53.8 Increase in “others” mainly related to FCC licenses
Slide 17: Consolidated B/S Summary - Liabilities
Consolidated B/S Summary - 4 (IFRSs) <JPY bn> B/S As of As of item Main items Mar. 2016 Mar. 2017 Change Main breakdown 5,165.8 5,226.9 +61.1 Short-term borrowings 515.4 667.7 +152.3 SBG: enhance cash on hand (+278.8) Current liabilities Sprint 148.5 - -148.5 Repaid in full Current portion of long-t
Slide 18: Consolidated B/S Summary - Equity
Consolidated B/S Summary - 5 (IFRSs) <JPY bn> B/S As of As of item Items Mar. 2016 Mar. 2017 Change Main breakdown 3,505.3 4,469.7 +964.4 Common stock 238.8 238.8 - Capital surplus 261.2 245.7 -15.5 Increase in net income attributable to owners of the parent Equity (+1,426.3). Retained earnings 2,16
Slide 19: Impact of Sprint - US-GAAP > IFRSs Adjustment (1)
Impact of Sprint - US-GAAP > IFRSs Adjustment (1) <Adjustment to PL items> (Apr. 1, 2016 – Mar. 31, 2017) <USD mil> Difference of recognition and measurement IFRSs Re-classifi- Network ARO Depreciation Sprint US-GAAP cation (1) Securitization SoftBank Group restructuring discount cost (4) on impaire
Slide 20: Impact of Sprint - US-GAAP > IFRSs Adjustment (2)
Impact of Sprint - US-GAAP > IFRSs Adjustment (2) <Adjustment to BS items> (as of Mar. 31, 2017) <USD mil> Re- Difference of recognition and measurement Adjust- IFRSs classifi- ment on Sprint US-GAAP Impaired Network ARO Liability to goodwill SoftBank Group cation assets restructuring discount rate
Slide 21: (Reference) Impact of Sale of Supercell Shares
(Reference) Impact of Sale of Supercell Shares Supercell’s earnings presented separately from “continuing operations.” Former FY15 Restated FY15 FY2016 Continuing operations Continuing operations Supercell’s net sales Net sales Net sales Supercell’s operating income Operating income Operating income
Slide 22: Finance
Finance 22
Slide 23: Main Financing Activities
Main Financing Activities Category Event Amount Timing th th Issuance of 49 , 50 Unsecured Straight Corporate Bond (7 years / 10 years) Total JPY 50.0bn Apr. 2016 Hybrid Bonds 1st (final legal maturity 25 years, NC5) JPY 55.6bn Bonds Sept. 2016 2nd (final legal maturity 27 years, NC7) JPY 15.4bn 3rd
Slide 24: Adjusted EBITDA and Adjusted EBITDA Margin (1)
Adjusted EBITDA and Adjusted EBITDA Margin (1) Significant improvement in Sprint contributes to consolidated EBITDA growth. Adjusted EBITDA Adjusted EBITDA Margin Domestic Telecommunications <JPY bn> Domestic Telecommunications Yahoo Japan Yahoo Japan Distribution Sprint Distribution ARM ARM Consoli
Slide 25: Adjusted EBITDA and Adjusted EBITDA Margin (2)
Adjusted EBITDA and Adjusted EBITDA Margin (2) Domestic Telecommunications segment sustains high profit margin. Adjusted EBITDA Adjusted Adjusted EBITDA EBITDA Margin Margin (Domestic Telecommunications) <JPY bn> 1,209.0 1,163.3 SoftBank (Domestic 37% 38% Telecommu- NTT DOCOMO nications) 32% 32% KDD
Slide 26: Interest-bearing Debt
Interest-bearing Debt Breakdown of Sprint’s Increased due to ARM acquisition. interest-bearing debt <JPY bn> YoY Change (details) +1,040.7 （term loan +USD 4bn, <JPY bn> Borrowings 1,351.3 spectrum finance +USD 14,142.9 3.5bn） Bonds 3,173.7 -4,463（redemption） Other 36.3 Sprint 11,922.4 Total 4,561.3
Slide 27: Cash Position
Cash Position After ARM acquisition, maintain affluent cash position. <JPY bn> 3,424.4 501.8 2,935.3 2,674.1 297.6 935.2 Sprint 2,922.6 2,376.5 2,000.1 Excl. Sprint As of end of Mar. 2017 Credit line facility of SBG - Total size JPY 178.5bn (Unused portion of credit line facility) Mar'15 Mar'16 Mar'
Slide 28: Net Interest-bearing Debt
Net Interest-bearing Debt Deteriorated due to ARM acquisition, alleviated by the monetization of Alibaba shares, etc. <JPY bn> 11,207.6 9,248.4 3,626.1 8,182.8 Sprint 3,677.3 3,601.1 Excl. Sprint 7,581.5 5,571.1 4,581.8 Mar. '15 Mar. '16 Mar. ’17 *1. Net interest-bearing debt: interest-bearing debt
Slide 29: Leverage Ratio
Leverage Ratio Deteriorated due to ARM acquisition, alleviated by the monetization of Alibaba shares and issuance of Hybrid Bonds. Leverage Ratio (Gross / Net) 5.7x 4.9x 5.3x （Gross） 4.0x 3.8x 4.2x （Net） Mar. '15 Mar. '16 Mar. '17 *1. Gross leverage ratio = interest-bearing debt / adjusted EBITDA *2
Slide 30: Net Leverage Ratio (Consolidated)
Net Leverage Ratio (Consolidated) Continued focus on net debt reduction. 6.2x (after Vodafone K.K. acquisition) 4.2x 3.8x 1.1x June '06 Mar. '07 Mar. '08 Mar. '09 Mar. '10 Mar. '11 Mar. '12 Mar. '13 Mar. '14 Mar. '15 Mar. '16 Mar. '17 *1. Net leverage ratio = net interest-bearing debt / adjusted EBI
Slide 31: Equity Attributable to Owners of the Parent Ratio
Equity Attributable to Owners of the Parent Ratio Equity increased due to monetization of shares held. Equity Attributable to Owners of the Parent Ratio of Equity Attributable to Owners of the (shareholders’ equity) Parent (shareholders’ equity ratio) <JPY bn> Actual shareholders’ equity Actual rati
Slide 32: Debt / Equity Ratio
Debt / Equity Ratio Debt / Equity Ratio (Gross / Net) 4.6x 4.1x 3.5x 3.6x（Gross） 2.9x 2.9x（Net） Mar'15 Mar'16 Mar'17 *1. Debt / equity ratio = interest-bearing debt / equity attributable to owners of the parent (shareholders’ equity (including adjustments related to the issuance of Hybrid Bonds)). *
Slide 33: Interest Expense
Interest Expense Interest Expense (finance cost) Interest Coverage Ratio Excl. Sprint Sprint Excl. Sprint Consolidated <JPY bn> 467.3 440.7 8.3x 272.6 7.6x 278.2 5.3x 5.5x 194.7 162.6 FY15 FY16 FY15 FY16 *1. Interest Coverage Ratio = adjusted EBITDA / interest expenses (finance cost) 33
Slide 34: Market Cap of Main Listed Holdings Held by SoftBank Group and Its Subsidiaries
Market Cap of Main Listed Holdings Held by SoftBank Group and Its Subsidiaries Market cap of shares held still approx. JPY 13t after monetization of portion of Alibaba shares. Partial monetization <JPY t> (Alibaba Group) 12.6 12.9 11.3 9.7 8.1 8.6 Alibaba Group 8.0 7.1 4.6 Sprint 1.3 1.5 1.3 0.7 0.9
Slide 35: SoftBank Group: Price and Spread of Domestic Currency Denominated Bond
SoftBank Group: Price and Spread of Domestic Currency Denominated Bond Domestic Currency Denominated Domestic Currency Denominated Bond Bond Price Credit Spread (bp) 35th Series (1 yr remaining) 35th Series (1 yr remaining) 45th Series (2 yrs remaining) 45th Series (2 yrs remaining) 44th Series (4 y
Slide 36: SoftBank Group: Price and Spread of Foreign Currency Denominated Bond
SoftBank Group: Price and Spread of Foreign Currency Denominated Bond Foreign Currency Denominated Bonds Foreign Currency Denominated Bonds Price Spread (bp) 2020 USD bonds 2022 USD bonds 2020 USD bonds 2022 USD bonds 120 2025 USD bonds 2020 EUR bonds 780 2025 USD bonds 2020 EUR bonds 2022 EUR bonds
Slide 37: Sprint: Price and Spread
Sprint: Price and Spread Price of Sprint Senior Notes Spread of Sprint Senior Notes 115 due 2021 due 2023 (bp) due 2021 due 2023 due 2024 due 2025 due 2028 due 2024 due 2025 due 2028 1800 105 1500 95 1200 85 900 75 65 600 55 300 16/1 16/3 16/5 16/7 16/9 16/11 17/1 17/3 16/1 16/3 16/5 16/7 16/9 16/11
Slide 38: Trend of Credit Rating of SoftBank Group
Trend of Credit Rating of SoftBank Group Acquisition of Acquisition of Acquisition of Acquisition of Japan Telecom Vodafone K.K. Sprint ARM 14 13 A/A2 12 A－/A3 JCR (A－) 11 BBB+/Baa1 10 BBB/Baa2 9 BBB－/Baa3 8 BB+/Ba1 S&P (BB＋) 7 BB/Ba2 Moody’s (Ba1) 6 BB－/Ba3 5 B+/B1 4 2003 2004 2005 2006 2007 2008 2
Slide 39: SoftBank Group Bond Redemption Schedule
SoftBank Group Bond Redemption Schedule Straight bond Subordinated bond Hybrid bonds 1,305.6 Foreign currency denominated bond 455.6 (*2) (JPY bn) 700.0 561.8 485.4 474.4 15.4 (*2) 400.0 191.8 850.0 700.0 324.4 293.4 470.0 400.0 370.0 120.0 293.4 67.7 120.0 150.0 30.0 30.0 67.7 FY17 FY18 FY19 FY20 F
Slide 40: SoftBank Vision Fund Financial Meaning (concept)
SoftBank Vision Fund Financial Meaning (concept) Maximize investment opportunities while managing leverage GP investment LP investor SoftBank Group SoftBank Vision Operational Fund companies Yahoo ARM Other SoftBank Sprint Holdings subsidiaries Japan Investment 投資先 portfolio Non-recourse Consolidati
Slide 41: FY2017 Financial Strategies
FY2017 Financial Strategies Balance SoftBank Vision Fund and credit improvement New investment strategy accelerating enterprise value oriented management - SoftBank Vision Fund • Maximize investment opportunities while managing leverage • Visualize mid to long-term investment strategy Enhance stakeh
Slide 42: (Reference)
(Reference) 42
Slide 43: Sprint Debt Maturities
Sprint Debt Maturities <USD mil> JPY bn in ( ) Sprint notes and credit facilities Clearwire Notes (898.6) 8,010 (672.1) 5,991 (453.6) (448.8) (418.9) 4,043 8,010 4,000 3,734 (284.3) (278.9) 5,991 (282.7) (277.7) 2,534 2,486 2,520 2,475 (224.4) 629 3,734 2,000 4,043 4,000 2,475 2,486 2,520 1,905 2,00
Slide 44: Change in the Ratio of Long to Short, and Fixed to Variable Interest-bearing Debt
Change in the Ratio of Long to Short, and Fixed to Variable Interest-bearing Debt Interest-bearing Debt Interest-bearing Debt Long / Short Ratio Fixed / Variable Ratio Long-term Short-term Fixed Variable <JPY bn> 14,142.9 14,142.9 11,922.4 19% 11,922.4 30% 22% 9,581.6 23% 9,581.6 23% 35% 81% 78% 77%
Slide 45: Domestic Telecommunications
Domestic Telecommunications 45
Slide 46: 1. Net Sales
<Domestic Telecommunications Segment> 1. Net Sales FY16 sales was approx. JPY 3.2t (YoY JPY 49.1bn increase: telecom revenue +JPY 18.1bn, product and other sales +JPY 31.1bn, YoY respectively). Broadband revenue contributed significantly (YoY +JPY 91.9bn). Net Sales Telecom Service Revenue Produ
Slide 47: 2. Operating Income/Adjusted EBITDA
<Domestic Telecommunications Segment> 2. Operating Income/Adjusted EBITDA FY16 segment income marked JPY 719.6bn, increased by JPY 31.2bn YoY. Continuous profit growth for 12 consecutive periods, FY17 aiming for 13. Operating Income/ Segment Income Adjusted EBITDA <JPY bn> <JPY bn> YoY compariso
Slide 48: 3. Segment Income Analysis
<Domestic Telecommunications Segment> 3. Segment Income Analysis Broadband drives topline growth, cost reductions contribute to profit growth. Mobile communications is decreasing due to increase in Home Bundle Discount Hikari Set, impact of Giga Monster, decrease in MBB and PHS. Sales Sales rela
Slide 49: 4. Mobile Communications Number of Subscribers and Churn Rate
<Domestic Telecommunications Segment> 4. Mobile Communications Number of Subscribers and Churn Rate (Main Subscribers) Subscribers: increased 0.36mil YoY, handsets increased, but decrease in MBB. Churn rate: deteriorated by 0.04% YoY, dramatic improvement in handset churn, but deterioration in M
Slide 50: 5. ARPU (main subscribers)
<Domestic Telecommunications Segment> 5. ARPU (main subscribers) FY16/Q4 ARPU is decreasing JPY 370 YoY: JPY 140 of that is impact of retroactive payment of access charge. Telecom ARPU is decreasing due to growing ratio of Y!mobile smartphones and increase in Home Bundle Discount Hikari Set. ARP
Slide 51: 6. Broadband Service
<Domestic Telecommunications Segment> 6. Broadband Service FY16/Q4 cumulative subscribers of SoftBank Hikari at 3.59mil. Steady trend in customer acquisition. Cumulative Home Bundle Discount Hikari Set subscribers at 6.03 mil, doubled YoY. Cumulative Subscribers Cumulative Home Bundle Discount H
Slide 52: 7. CAPEX / Free Cash Flow
<Domestic Telecommunications Segment> 7. CAPEX / Free Cash Flow FY16 CAPEX is approx. JPY 295.0bn. Plan to increase in FY17. FY2016 FCF marked JPY 561.8bn, increased by JPY 159.6bn YoY. Expect FY17 to be at same level as FY16. CAPEX Free Cash Flow (*adjusted) <JPY bn> <JPY bn> 減価償却費 Depreciation
Slide 53: 8. Growth Strategy
<Domestic Telecommunications Segment> 8. Growth Strategy - Enhance customer base - OTT (synergies with Yahoo! Japan) / expansion of new areas (2) OTT (Yahoo Japan Synergies) (3) New Areas Strategic areas IBM Watson Content Credit card EC IoT AI Fintech Robot businesses Existing Mobile BB (1) Enhance
Slide 54: 8. Growth Strategy -1. Enhance Customer Base
<Domestic Telecommunications Segment> 8. Growth Strategy -1. Enhance Customer Base Promoting 2 brands marketing : Promote differentiation / focus on upfront investment in FY2017 Discount with Synergies with YJ / FTTH services Large data plan Long-time use benefits etc. *1 20GB JPY 6,000/month *2 Max
Slide 55: 8. Growth Strategy -2. OTT (Synergies with Yahoo! Japan)
<Domestic Telecommunications Segment> 8. Growth Strategy -2. OTT (Synergies with Yahoo! Japan) Continuation of the campaign. Pursue expansion of EC transaction volume through smart login. Yahoo! Shopping SoftBank smartphone users get 10x points everyday *Start from February 2017. *Requires smart l
Slide 56: 8. Growth Strategy -2. OTT (Synergies with Yahoo! Japan)
<Domestic Telecommunications Segment> 8. Growth Strategy -2. OTT (Synergies with Yahoo! Japan) All SoftBank smartphone users can get unlimited use of Yahoo! Premium benefits for free. (Basic Yahoo! Premium monthly charge: ¥500/month) Yahoo! Premium Unlimited use of benefits (SoftBank smartphone us
Slide 57: 8. Growth Strategy -3. New Areas
<Domestic Telecommunications Segment> 8. Growth Strategy -3. New Areas Create growth opportunities through smartphones & FTTH Health promoting Insurance Automatic driving IoT IBM Watson Collaborate in Blockchain technology development for telecommunications carriers <Fintech> Israeli security techno
Slide 58: (Reference) Domestic Telecommunications Segment Breakdown of Net Sales
<Domestic Telecommunications Segment> (Reference) Domestic Telecommunications Segment Breakdown of Net Sales <JPY bn> FY2015 FY2016 Full Full Q1 Q2 Q3 Q4 year Q1 Q2 Q3 Q4 year Total net sales 722.6 785.5 833.9 802.7 3,144.7 761.8 792.8 846.1 793.1 3,193.8 Telecom service revenue 586.9 599.9 606.2 61
Slide 59: Definition and Calculation Method of Main Operational Data
Definition and Calculation Method of Main Operational Data <Mobile Communications Service> 1. Subscribers Main subscribers: smartphones (*1), feature phones, tablets, mobile data communications devices (*2), others, Communication modules: communication modules (*3), Mimamori Phone, prepaid mobile ph
Slide 60: Sprint
Sprint 60
Slide 61: SoftBank Investor Briefing: Fiscal 4Q16 Results
Fiscal 4Q16 Results SoftBank Investor Briefing May 12, 2017 ©2016 Sprint. This information is subject to Sprint policies regarding use and is the property of Sprint and/or its relevant affiliates and may contain restricted, confidential or privileged materials intended for the sole use of the intend
Slide 62: Cautionary Statement
Cautionary Statement SAFE HARBOR This release includes “forward-looking statements” within the meaning of the securities laws. The words “may,” “could,” “should,” “estimate,” “project,” “forecast,” “intend,” “expect,” “anticipate,” “believe,” “target,” “plan”, “outlook,” “providing guidance,” and si
Slide 63: Fiscal Year 2016 Highlights
Fiscal Year 2016 Highlights Net Operating Operating Revenues Expenses Adjusted EBITDA* Highest in 9 years Grew year-over-year for the first time in 3 years $2.1B of year-over-year reductions Operating Income Highest in 10 years in CoS and SG&A Adjusted Free Cash Flow* Postpaid Phone Net Adds^ Networ
Slide 64: Growing Connections
Growing Connections Postpaid Phone Net Adds^ In Thousands Postpaid Phone Net Adds^ More than 2.5M Improvement DOUBLE year-over-year Postpaid Phone Churn^ Postpaid Phone Churn^ BEST in Sprint History ^ indicates results specific to Sprint Platform ©2016 Sprint. This information is subject to Sprint p
Slide 65: Enhancing Our Value Proposition
Enhancing Our Value Proposition Expanding Distribution ©2016 Sprint. This information is subject to Sprint policies regarding use and is the property of Sprint and/or its relevant affiliates and may contain restricted, confidential or privileged materials intended for the sole use of the intended re
Slide 66: Network at Best Ever Levels
Network at Best Ever Levels 1 RELIABILITY Our best ever 30% year-over-year Carrier Aggregation 2X 3X 4X 5X Small Cells 1‐Rankings based on RootMetrics Metro RootScore Reports from 1H 2016, 2H 2016, and 1H 2017 and, National RootScore Report from 2H 2016 for mobile performance as tested on best avail
Slide 67: LTE Key to Success
LTE Key to Success Verizon AT&T T-Mobile Sprint + Spectrum Innovative Advantage Deployment ©2016 Sprint. This information is subject to Sprint policies regarding use and is the property of Sprint and/or its relevant affiliates and may contain restricted, confidential or privileged materials intended
Slide 68: Sprint's Toolbox in Action
Sprint's Toolbox in Action Innovative Deployment Millions of Small Cells ©2016 Sprint. This information is subject to Sprint policies regarding use and is the property of Sprint and/or its relevant affiliates and may contain restricted, confidential or privileged materials intended for the sole use
Slide 69: Growing Revenue
Growing Revenue Wireless Equip Rev Net Operating Revenue Wireless Service Rev Consolidated Net Operating Rev In Billions Consolidated Net Operating REVENUES GREW year-over-year for the first time in 3 years Postpaid Phone Avg Billings Per User (ABPU)^* Equip Service Postpaid Phone ABPU ^* Increased
Slide 70: Reducing Operating Expenses
Reducing Operating Expenses Cost of Services + SG&A Dollars in Billions SG&A Cost of Services $1.3B $2.1B $3.4B Cumulative REDUCTION in CoS and SG&A ©2016 Sprint. This information is subject to Sprint policies regarding use and is the property of Sprint and/or its relevant affiliates and may contain
Slide 71: Improving Profitability
Improving Profitability Adjusted EBITDA* Dollars in Billions Adjusted EBITDA* HIGHEST in nine years Operating Income (Loss) Operating Income Dollars in Billions HIGHEST in ten years Up nearly 6x year-over-year ©2016 Sprint. This information is subject to Sprint policies regarding use and is the prop
Slide 72: Capex / Adjusted Free Cash Flow
Capex / Adjusted Free Cash Flow* Cash Capex Device Non-Device Cash Capex Capital Dollars in Millions Efficiency Software driven capacity Surgical small cell deployment Adjusted Free Cash Flow* Adjusted Free Cash Flow* Dollars in Millions POSITIVE in FY 2016 ©2016 Sprint. This information is subj
Slide 73: Strengthening the Balance Sheet
Strengthening the Balance Sheet $12.1 Strong $10.9 of Liquidity Diversifying General Purpose Liquidity $5.0 funding sources Lowering cost of debt Cash, Cash Equiv, Short‐Term Investments Revolver Vendor Financing Note Maturities Receivables/Device Financing Network Equipment Financing Other ©2016 Sp
Slide 74: Fiscal Year 2017 Guidance
Fiscal Year 2017 Guidance Adjusted Operating Cash EBITDA* Income Capex $10.7 billion to $2 billion to $3.5 billion to $11.2 billion $2.5 billion $4 billion excluding devices leased through indirect channels ©2016 Sprint. This information is subject to Sprint policies regarding use and is the propert
Slide 75: SoftBank
SoftBank