Softbank Group Corp. · TSE:9984
Softbank — H1 FY2011 Earnings Presentation
81 slides from Softbank's earnings presentation, Oct 28, 2011
Slide 1: Earnings Results for the Six-month Period Ended September 30, 2011
Earnings Results for the Six-month Period Ended September 30, 2011 (April to September 2011) Analyst Meeting October 28, 2011 SOFTBANK 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, Finance, Operation
Accounting 4 Consolidated P/L Analysis 5 Consolidated B/S Analysis 16 Consolidated CF Analysis 26 Finance 31 Operation 53 Broadband Infrastructure Segment 55 Fixed-line Telecommunications Segment 59 Mobile Communications Segment 63 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
Consolidated P/L Summary <bn JPY> Net Sales Operating Income Ordinary Income Net Income 700 3,004.6 629.1 3,000 Q4 600 754.7 147.0 520.4 500 +18.3% 120.4 Q3 2,000 +4.8% 784.8 400 166.6 373.2 +23.9% 1,535.6 x2.8 1,465.0 315.5 146.0 314.4 300 +182.7% Q2 197.3 253.8 771.4 158.9 163.2 217.2 764.1 189.7
Slide 7: Consolidated Net Sales
Consolidated Net Sales +70.6 <bn JPY> (+4.8%) Mobile Communications +80.8bn 1,535.6 - Increase in telecom service revenue +86.5bn 1,465.0 Increase in subscribers +91.1bn -Decrease in revenue from sales of mobile -5.7bn handsets and accessories 940.0 1,020.9 Mobile Broadband Infrastructure -10.1bn Co
Slide 8: Consolidated Operating Income
Consolidated Operating Income +57.7 (+18.3%) <bn JPY> Mobile Communications +42.8bn 373.2 - Increase in net sales +80.8bn - Increase in COS, SGA -38.0bn (main factors for the change) Increase in depreciation & amortization on additional installment of base stations 315.5 Increase in sales commission
Slide 9: Non-operating Income/Expense and Ordinary Income
Non-operating Income/Expense and Ordinary Income <bn JPY> Non-operating Income/Expense Ordinary Income Net of increase Non-operating Income Interest expense Increase in in non-operating FY11/Q1-2 Refinancing related expense* operating income/expense Ordinary Other non-operating expenses income incom
Slide 10: 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 (1) Gain on sale of investment securities (Total special income) (2) Dilution gain from changes in equity interest Net of increase FY11/Q1-2 (3) Other special income 102.7 in special Income be
Slide 11: Net Income
Net Income <bn JPY> FY11/Q1-2 Net Income YoY Increase Factors Increase in Income taxes: Income before Increase in Increase in current income taxes Income taxes Minority FY11/Q1-2 18.0 interests Net income 101.3 3.0 Income taxes: deferred 57.3 Minority interests 161.5 32.1 Income before Income before
Slide 12: (Reference) FY11/Q1-2 Comprehensive Income
(Reference) FY11/Q1-2 Comprehensive Income <bn JPY> Changes during FY11/Q1-2 (Adjustment) Compre- Share of other B/S hensive comprehensive income B/S (Adjustment) of affiliated companies FY10/Q4 Income Minority interest accounted for using FY11/Q2 Balance /loss equivalent equity method Balance P/L a
Slide 13: Tax and Other Adjustments
Tax and Other Adjustments FY11/Q1-2 Main Breakdown of Tax Expenses < bn JPY> A Income taxes: current 101.3 (main breakdown) 1. BBM income taxes under consolidated tax return 37.5 2. SBM local taxes (out of scope for BBM consolidated tax return) 22.8 3. Yahoo Japan 30.1 B Income taxes: deferred 57.3
Slide 14: Difference in Tax Rate & Loss Carryforwards (Ref.)
Difference in Tax Rate & Loss Carryforwards (Ref.) FY11/Q1-2 Reconciliation Between Statutory Tax Rate and Effective Tax Rate Rate (%) <ref.> Amount (bn JPY) Income before income tax 408.0 Statutory income tax rate 40.7% 166.0 (main factors of difference) - Amortization of goodwill (mainly SOFTBANK
Slide 15: Financial Results of Non-consolidated Subsidiaries and Affiliates
Financial Results of Non-consolidated Subsidiaries and Affiliates Net income/loss, interest-bearing debt at non-consolidated subsidiaries and affiliates not accounted for under the equity method Net Income/Loss Interest-bearing Debt Number of Companies (after consideration of (not within economic in
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 1,862.6 1,693.0 1,644.4 1,839.8 1,026.9 847.7 793.5 971.7 835.6 845.2 850.8 868.0 Mar 2011 Sep 2011 Mar 2011 Sep 2011 Fixed Assets Long-term Liabilities 2,791.7 2,851.3 2,131.6 1,943.0 1,991.9 1,058.8 1,419.7 293.1 848.6
Slide 18: Consolidated B/S (1) Current Assets
Consolidated B/S (1) Current Assets <bn JPY> Assets Mar 2011 Sep 2011 Variance Outline Current assets 1,862.6 1,693.0 -169.5 SBM 1,026.9 847.7 -179.2 Others 835.6 845.2 9.6 Cash and deposits 861.6 902.7 41.1 Increase provided by operating activities (+257.6), outlay due to acquisition of fixed asset
Slide 19: Consolidated B/S (2) Tangible Assets
Consolidated B/S (2) Tangible Assets <bn JPY> Assets Mar 2011 Sep 2011 Variance Outline Fixed assets 2,791.7 2,851.3 59.6 SBM 1,943.0 1,991.9 48.8 Others 848.6 859.3 10.7 Property and equipment, net 1,113.4 1,191.2 77.7 SBM 809.6 880.2 70.6 Others 303.8 310.9 7.1 Building and structures 74.8 74.3 -0
Slide 20: Consolidated B/S (3) Intangible Assets, Investments and Other Assets
Consolidated B/S (3) Intangible Assets, Investments and Other Assets <bn JPY> Assets Mar 2011 Sep 2011 Variance Outline Fixed assets 2,791.7 2,851.3 59.6 Intangible assets, net 1,120.3 1,107.1 -13.2 SBM 1,002.0 992.3 -9.7 Others 118.3 114.8 -3.4 Goodwill 839.2 807.9 -31.2 SBM 775.7 749.9 -25.7 Decre
Slide 21: Consolidated B/S (4) Current Liabilities
Consolidated B/S (4) Current Liabilities <bn JPY> Liabilities Mar 2011 Sep 2011 Variance Outline Current liabilities 1,644.4 1,839.8 195.4 SBM 793.5 971.7 178.2 Others 850.8 868.0 17.1 Accounts payable-trade 193.6 148.5 -45.0 SBM 133.9 95.7 -38.1 Payment for mobile handsets, etc. SBB: Mar 11 (39.3)
Slide 22: Consolidated B/S (5) Long-term Liabilities
Consolidated B/S (5) Long-term Liabilities <bn JPY> Liabilities Mar 2011 Sep 2011 Variance Liabilities Long-term liabilities 2,131.6 1,419.7 -711.9 SBM 1,058.8 293.1 -765.7 Others 1,072.8 1,126.6 53.7 Corporate bonds 507.3 492.3 -15.0 SBM - - - SB: 36th & 37th Unsecured Straight Bond issue (+130.0)
Slide 23: Consolidated B/S (6) Equity
Consolidated B/S (6) Equity <bn JPY> Equity Mar 2011 Sep 2011 Variance Outline Equity 879.6 1,291.5 411.9 Shareholders’ equity 623.3 874.3 251.0 Transfer due to the conversion of Convertible Bonds due 2014 Common stock 188.7 213.7 25.0 into common stock Transfer due to the conversion of Convertible
Slide 24: [Equity] Foreign Currency Translation Adjustments
[Equity] Foreign Currency Translation Adjustments <bn JPY> 60 Foreign currency translation adjustments account 40 20 0 -21.8 -20 -30.5 -31.6 -34.4 -32.5 -36.7 -45.2 -50.2 -49.8 -40 -51.4 -53.0 -60 Mar 09 Jun Sep Dec Mar 10 Jun Sep Dec Mar 11 Jun Sep <Reference> Main exchange rate trend <JPY> GBP/JPY
Slide 25: [Equity] Shareholders' Equity
[Equity] Shareholders’ Equity <bn JPY> Common stock & additional paid-in capital* Accumulated deficit/retained earnings Treasury stock Unrealized gain/ loss on available-for-sale securities Deferred gain/ loss on derivatives under hedge accounting Foreign currency translation adjustments Equity rati
Slide 26: Consolidated CF Analysis
Accounting Consolidated CF Analysis 26
Slide 27: Consolidated Cash Flow Main Breakdown
Sep 11 27 <bn JPY> Cash and cash equivalents at 888.7 the end of the period Proceeds from issuance of preferred 200.0 securities by a subsidiary (Note) Cashflow impact from transfer of Yahoo! Inc. shares to CITIBANK and repayment of borrowings by settling forward (see page 28 for details) -72.2 Repa
Slide 28: Repayment of Borrowings by Transfer of Yahoo! Inc. Shares
Repayment of Borrowings by Transfer of Yahoo! Inc. Shares Impact on Consolidated Financial Statements $1,135mil Realized gain on the Gain on sale of Offsetting forward contracts Amounts borrowed borrowings investment securities USD 1,135mil USD 392mil USD 993mil (no cash transfer) Repayment of debt
Slide 29: SoftBank
SoftBank
Slide 30: SoftBank
SoftBank
Slide 31: Finance
Finance Yoshimitsu Goto General Manager Finance SOFTBANK CORP. 31
Slide 32: Main Financing Activities of FY2011
Main Financing Activities of FY2011 <Main Financing Activities> Date Content Amount 2011 Issue 36th Unsecured Straight Corporate Bond JPY 100.0bn June (Fukuoka SoftBank HAWKS Bond) June Issue 37th Unsecured Straight Corporate Bond JPY 30.0bn Conversion of Convertible Bond due 2014 into common stock
Slide 33: EBITDA and EBITDA Margin (by segment)
EBITDA and EBITDA Margin (by segment) Consolidated EBITDA margin remains stable at 30%. Consolidated EBITDA EBITDA Margin <bn JPY> Other Internet Culture BB Infrastructure Fixed-line Telecommunications Mobile Communications 533.1 550 60% 57% Internet 56% 459.3 Culture 450 50% Mobile 350 370.6 40%
Slide 34: Interest-bearing Debt (by procurement method)
Interest-bearing Debt (by procurement method) Completed the repayment of SBM loan by executing the syndicated loan related to refinance of mobile business acquisition. <bn JPY> Securitization of installment sales receivables obligations 2,500 2,195.4 SBM loan 2,075.8 219.8 49.9 1,886.8 Vodafone su
Slide 35: Lease Obligations
Lease Obligations Lease balance remains stable. <bn JPY> 800 Finance leases (accounted for as operating lease transactions)* 600 Finance leases (lease obligations) 439.8 409.5 413.6 416.2 400 105.6 68.2 78.5 73.1 200 334.2 331.0 340.4 347.9 0 Mar 10 Mar 11 Jun Sep *Finance lease transactions in wh
Slide 36: Cash Position
Cash Position Sustain abundant cash position. <bn JPY> 1,000 906.7 866.1 800 749.0 694.3 600 400 200 0 Mar 10 Mar 11 Jun Sep Credit line facility size 161.0 187.0 187.0 180.0 Unused portion 101.0 107.0 157.0 180.0 Note:1.Cash position = cash and cash deposits + marketable securities included in cu
Slide 37: Net Interest-bearing Debt
Net Interest-bearing Debt Achieved the target of net interest-bearing debt reduction 6 months ahead of schedule. <bn JPY> 1,501.0 1,500 1,209.6 1,137.8 1,000 728.7 500 0 Mar 10 Mar 11 Jun Sep Note: 1. Net interest-bearing debt = interest-bearing debt - cash position 2. Interest-bearing debt: short
Slide 38: Interest-bearing Debt Long/Short and Fixed/Variable Ratio Trend
Interest-bearing Debt Long/Short and Fixed/Variable Ratio Trend Short-term & variable rate ratio increased due to the repayment of long-term debt on a large scale. Interest-bearing Debt Interest-bearing Debt Long/Short Ratio Fixed/Variable Ratio <bn JPY> <bn JPY> Long-term Short-term Fixed Variabl
Slide 39: Credit Spread
Credit Spread CDS Bond Spread (bp) (bp) 500 26th Unsecured Straight Corporate Bond 2,000 SOFTBANK CDS (5 years) (2.7years remaining) 30th Unsecured Straight Corporate Bond 400 (3.4 years remaining) 34th Unsecured Straight 1,500 Corporate Bond (4.3 years remaining) 300 35th Unsecured Straight Corpora
Slide 40: Issuance of Preferred Securities by a Consolidated Subsidiary
Issuance of Preferred Securities by a Consolidated Subsidiary Financed JPY200.0bn through issuance of preferred securities by a consolidated subsidiary. <Outline> Amount JPY 200.0bn Dividend rate 2.04% (Step-up clause will be applied after May 2015) Use of funds Mainly payment (in Apr 2012) relating
Slide 41: Bond Redemption Schedule
Bond Redemption Schedule Sustain sufficient repayment resources. Repayment Capability Corporate Bonds Redemption Schedule (cash and cash deposits, and <bn JPY> marketable securities) SB straight bond 1,000 SB convertible bond 906.7 866.1 SBTM straight bond 800 Others 600 Schedule to redeem Payment
Slide 42: WBS Refinance: Full & Early Repayment of SBM Loan
WBS Refinance: Full & Early Repayment of SBM Loan SBM Loan Balance (bn JPY) After full repayment of non-recourse loan Consolidated CF operation is possible; towards ratings improvement Reduce interest cost July 22 Refinance 1,366.0 Execution of loan agreement (Total amount: JPY 550.0bn) July 27 Repa
Slide 43: Improve Indexes: (1) Interest-bearing Debt/EBITDA Multiple
Improve Indexes: (1) Interest-bearing Debt/EBITDA Multiple Net interest-bearing debt/EBITDA multiple to mark below 1.0 Net Interest-bearing Debt/EBITDA Interest-bearing Debt/EBITDA Multiple Multiple <times> <times> 8.0 8.0 6.0 6.0 4.8 4.1 4.0 3.5 4.0 3.3 4.0 2.9 2.8 2.2 1.9 2.0 1.5 2.0 1.3 0.7 0.0
Slide 44: Improve Indexes: (2) Debt/Equity Ratio
Improve Indexes: (2) Debt/Equity Ratio Net debt equity ratio marked below 1.0. <times> Debt Equity Ratio <times> Net Debt Equity Ratio 10.0 10.0 9.0 7.6 8.0 8.0 6.6 6.4 6.0 6.0 5.3 5.2 4.7 4.0 3.4 4.0 3.2 2.0 2.0 2.0 2.0 0.9 0.0 0.0 Mar 07 Mar 08 Mar 09 Mar 10 Mar 11 Sep 11 Mar 07 Mar 08 Mar 09 Ma
Slide 45: Improve Indexes: (3) Equity Ratio
Improve Indexes: (3) Equity Ratio Equity ratio significantly recovered. Equity Ratio (Ref.) Equity Ratio* <considering unrealized gain> <bn JPY> <bn JPY> 54.5% 2,000 30% 2,000 Shareholders' equity (considering unrealized gain) 30% 1,876.9 Equity ratio (considering unrealized gain) Shareholders' eq
Slide 46: Trend of Credit Rating of SOFTBANK
Trend of Credit Rating of SOFTBANK Moody’s under review for possible upgrades. A/A2 A /A3 JCR (A-) BBB+/Baa1 BBB/Baa2 BBB /Baa3 S&P (BBB-) BB+/Ba1 BB/Ba2 BB /Ba3 Moody’s (Ba2) Under review for possible upgrades review towards completion of refinance B+/B1 in November (from Moody’s press release da
Slide 47: Commitment to Reduce Net Interest-bearing Debt
Commitment to Reduce Net Interest-bearing Debt <JPY> 2.4t Commitment achieved 6 months ahead of schedule 1.9t 1.2t Half Zero June FY2008 FY2010 FY2011 FY2014 2006 (target) (target) Note: 1. Net interest-bearing debt = interest-bearing debt - cash position 2. Interest-bearing debt: short-term borrowi
Slide 48: 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 49: FY2011 Financial Strategies
FY2011 Financial Strategies Balance between growth strategy and strengthening financial base 1. Gain foothold for further growth - Prioritized distribution of FCF to CAPEX - Support strategic business investments actively - Focus on value improvement of companies invested in 2. New phase of credit i
Slide 50: (Reference) Corporate Bond Details
(Reference) Corporate Bond Details < mil JPY > Interest Rate Mar. 11 Sep. 11 Company Name Bond Issue Date Maturity Date Collateral Change (%/year) Balance Balance 27th series Unsecured Straight Bond 2009/6/11 2011/6/10 5.10 None 60,000 － -60,000 (Fukuoka SoftBank HAWKS bond) 25th series Unsecured St
Slide 51: SoftBank
SoftBank
Slide 52: SoftBank
SoftBank
Slide 53: Operation
Operation Kazuhiko Fujihara Senior Vice President, Director & CFO SOFTBANK MOBILE Corp. Senior Vice President, Director & CFO SOFTBANK BB Corp. Senior Vice President, Director SOFTBANK TELECOM Corp. 53
Slide 54: Overview of Telecommunications Businesses
Overview of Telecommunications Businesses 3 Telecommunications Businesses led consolidated operating income to reach record high. <bn JPY> Broadband Infrastructure Fixed-line Telecommunications Mobile Communications Operating income YoY SOFTBANK consolidated: +57.7 370.6 Mobile Communications: +42
Slide 55: Broadband Infrastructure Business
Operation Broadband Infrastructure Business 55
Slide 56: Operating Income, EBITDA
Operating Income, EBITDA <BB> Profit decreased YoY. Efforts continued to increase lines. <bn JPY> Operating Income EBITDA 80 100 80 70.3 70.9 48.3 65.2 61.0 47.2 16.8 43.1 60 18.2 55.6 14.1 39.7 9.2 13.8 40 10.6 9.6 Q4 15.7 20.1 12.1 18.5 15.9 9.4 14.3 15.2 26.8 10.8 40 35.1 27.0 15.4 33.4 33.9 11
Slide 57: Yahoo! BB ADSL Lines and ARPU
Yahoo! BB ADSL Lines and ARPU <BB> Number of lines: decreased in ADSL, increased in Yahoo! BB hikari with FLET’S. Net increase in total. Number of Lines ARPU <k lines> <JPY> 6,000 Yahoo! BB hikari with FLET'S Cumulative contracts 5,000 ADSL (installed line base) ADSL Installed lines Yahoo! BB hika
Slide 58: CAPEX (acceptance basis)
CAPEX (acceptance basis) <BB> Enhanced CAPEX. Annual plan: JPY 35.0bn (Q1-2: 27.4% completed) <bn JPY> CAPEX and Depreciation & Amortization CAPEX (quarterly trend) 100 (yearly trend) 25 CAPEX 80 20 Depreciation & amortization 60 15 (Reference) 47.6 Annual plan 35.0 10 40 22.1 21.2 4.3 4.3 4.0 4.1
Slide 59: Fixed-line Telecommunications
Operation Fixed-line Telecommunications 59
Slide 60: Operating Income, EBITDA
Operating Income, EBITDA <Fixed> Sustained revenue & profit increase, through enhancement of <bn JPY> corporate sales, efficient management, group synergies. Operating Income/Loss EBITDA 40 100 38.0 85.6 35 14.1 80 30 27.2 67.0 27.4 64.3 25 23.0 (*2) 60 18.9 19.6 20 14.3 18.7 10.2 47.9 49.8 8.6 21
Slide 61: Number of Lines and ARPU for OTOKU Line
Number of Lines and ARPU for OTOKU Line <Fixed> Number of lines and ARPU in solid trend on enhancement of corporate sales Number of Lines ARPU <k lines> <JPY> Consumer 12,000 1,800 SME (excl. SBTP) 1,650 1,670 1,680 Large Corp. Total SME (SBTP) 1,600 Large corp 1,500 10,000 1,400 1,320 8,000 1,200
Slide 62: CAPEX (acceptance basis)
CAPEX (acceptance basis) <Fixed> Annual plan: JPY 38.0bn (Q1-2: 38.4% completed) Depreciation & amortization + lease decreasing. <bn JPY> CAPEX and Depreciation & Amortization CAPEX 25 (quarterly trend) 100 (yearly trend) CAPEX 82.6 Depreciation & amortization 80 20 Depreciation & amortization + l
Slide 63: Mobile Communications
Operation Mobile Communications 63
Slide 64: SoftBank
SoftBank
Slide 65: SBM Consolidated Net Sales
SBM Consolidated Net Sales <Mobile> Net sales increased by 8.6% (achieved the record high* YoY increase of 13.8% in telecom service revenue). <bn JPY> SBM Consolidated Net Sales SBM Consolidated Net Sales Telecom service revenue (Quarterly Comparison) YoY <bn JPY> Telecom service revenue Sales of
Slide 66: Operating Income/EBITDA (SB Consolidated)
Operating Income/ EBITDA (SB Consolidated) <Mobile> Revenue and profit new record high*; operating income increased by 20.7% YoY. Operating Income EBITDA (Mobile Communications Segment) YoY (Mobile Communications Segment) YoY +42.8 +60.3 <bn JPY> (+20.7%) <bn JPY> 700 (+19.5%) 402.4 620.4 400 600
Slide 67: Number of Subscribers
Number of Subscribers (quarterly net additions/cumulative) <Mobile> Net additions in Q2 marked 760k. Cumulative subs +3.42mil YoY. <k subs> Net Additions <mil subs> Cumulative Subscribers 1,200 26.90 2G 3G 26.14(+3.42) 1,009 25 23.47 YoY comparison in ( ) 1,000 973 926 21.32 901 19.63 20 800 760 7
Slide 68: Number of Monthly Net Additions
Number of Monthly Net Additions <Mobile> H1: Net additions 1.49mil, MNP* 309k (both marked the all-time No.2) <k subs> Net Additions <k subs> MNP Net Additions* FY11/Q1-2 309k 500 100 FY10/Q1-2 SOFTBANK (-43k) FY10/Q1-2 FY11/Q1-2 353k 80 1,598k 1,490k 400 (-108k) 333 60 299 300 280 276 40 251 289
Slide 69: Churn Rate & Upgrade Rate
Churn Rate & Upgrade Rate <Mobile> YoY: Churn rate increased; upgrade rate decreased. (Both were inflated by 2G termination till FY09.) Churn Rate Upgrade Rate Total 3G Postpaid 3.0% 2.0% 2.67% 1.42% 1.91% 1.24% 2.0% 1.81% 1.67% 1.05% 1.08% 1.09% 0.98% 0.96% 1.0% 1.31% 1.07% 1.03% 0.76% 0.92% 1.02
Slide 70: Churn Rate Details (FY11/Q2)
Churn Rate Details (FY11/Q2) <Mobile> Churn rate largely varies according to the history of handset upgrades. Churn Rate of 3G Postpaid (FY11/Q2) <by history of handset upgrades> 2.0% (details) Figures for the same period of the previous fiscal year is shown in ( ) 1.41% 1.5% (1.44%) Churn rate of
Slide 71: ARPU (Average Revenue Per User)
ARPU (Average Revenue Per User) <Mobile> QoQ: + JPY 90, data +JPY 80. YoY: + JPY 10, data + JPY 240. impact from access charge price reduction: JPY 100 <JPY> FY06 FY07 FY08 FY09 FY10 JPY 5,510 JPY 4,650 JPY 4,070 JPY 4,070 JPY 4,210 6,000 5,700 QoQ YoY Basic charge + voice <JPY> <JPY> Data 5,000
Slide 72: ARPU (Reference) Impact of Monthly Discounts
(Reference) Impact of Monthly Discounts ARPU (Average Revenue Per User) <Mobile> YoY (Monthly Discounts referred to separately) Basic monthly charge plus voice: -JPY 350, data: +JPY 270 impact of Monthly Discounts: +JPY 90. YoY comparison in ( ) <JPY> Data Basic charge + voice (before Monthly Disc
Slide 73: ARPU Comparison
ARPU Comparison <Mobile> Increased by JPY 10 YoY (absorbing impact from access charge price reduction of JPY 100) . <JPY> 400 ARPU YoY Comparison 200 SOFTBANK 0 +JPY 10 -200 NTT DOCOMO -400 KDDI -600 -800 -1,000 -1,200 Q1 2 3 4 Q1 2 3 4 Q1 2 3 4 Q1 2 3 4 Q1 2 3 4 Q1 2 FY06 FY07 FY08 FY09 FY10 FY11
Slide 74: Trend of SBM Telecom Service Revenue
Trend of SBM Telecom Service Revenue <Mobile> Voice (incl. basic monthly charge) maintains a stable trend. Data drives the increase in telecom service revenue. Basic charge + Voice Impact of access charge reduction Data Other (not included in ARPU calculation) <bn JPY> Total YoY 400 YoY comparison
Slide 75: Average Cash Income Per Subscription
Average Cash Income Per Subscription (including HS installment payment) <Mobile> Cash income per subscription decreased due to impact of termination of installment periods, etc. Data Basic charge + Voice Backup Service Package, etc. HS installment payment <JPY> Impact of access charge reduction 7,
Slide 76: CAPEX (acceptance basis)
CAPEX (acceptance basis) <Mobile> Annual plan: JPY 404.0bn (Q1-2: 45.2% completed). D&A increasing. <bn JPY> CAPEX and Depreciation & Amortization CAPEX (quarterly trend) (yearly trend) (Reference) Annual plan CAPEX (Mobile Communications 404.0 150 Segment) 400 11 months Depreciation & amortizatio
Slide 77: New Super Bonus Subscription Ratio
New Super Bonus Subscription Ratio <Mobile> Subscription ratio remains stable around 80%. Cumulative subscription ratio decreasing due to termination of installment periods, etc. New Super Bonus Subscription Ratio (includes Super Bonus) 100% Acquisitions subscription ratio (*1) Cumulative subscrip
Slide 78: Installment Sales Receivables Balance
Installment Sales Receivables Balance <Mobile> Continued sale of installment sales receivables. Impacts on operating cashflow decreasing. Installment Sales Receivables Balance <ref.>Amount of receivables sold <bn JPY> FY09 FY10 FY11 <bn JPY> Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 600 10.3 10.3 - 55.7 57.9 63.
Slide 79: SBM 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 per sub decreased due to change in the product mix in handsets sold. SBM Average Acquisition Cost per Subscriber*1 and Gross Margin from Sales of Mobile Handsets
Slide 80: Improvement in Management Efficiency
Improvement in Management Efficiency <Mobile> Inventory of lowest-ever level Allowances sustain steady trend. SBM Inventory (on B/S) SBM Allowance for Doubtful Accounts of <bn JPY> <bn JPY> Installment Receivables and Bad Debt Loss 70 35 (on P/L) 60 30.4 30 50 44.9 Q4 25 10.1 40 36.5 41.6 20 30
Slide 81: Trademarks and copying notice
* 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