SoftBank Group founder Masayoshi Son has outlined an ambitious timeline for the widespread adoption of artificial intelligence (AI), envisioning the advent of AI butlers in the near future. Speaking at an annual forum for corporate clients, Son described a future where AI can monitor family health, contact doctors when necessary, handle shopping and appointments, evaluate investment strategies, and even tutor children. He believes that general AI could become a reality within the next two to three years, al ...

Financial Data and Key Metrics - Consolidated revenue increased by JPY 172 billion (2.9%) year-on-year, reaching JPY 6.06 trillion, exceeding the upwardly revised forecast [5][23] - Adjusted EBITDA increased by JPY 100 billion year-on-year, driven by non-consumer segments [6] - Operating income rose by JPY 110.7 billion to JPY 876.1 billion, with all segments contributing to the increase [24] - Net income saw a significant increase due to higher operating income and the absence of impairment losses recorded in the previous year [30] - Free cash flow exceeded JPY 600 billion, with adjusted free cash flow at JPY 532 billion after accounting for long-term growth investments [15][51] Business Line Performance - **Consumer Segment**: Revenue decreased by JPY 59.1 billion, but segment income improved by JPY 33.1 billion due to reduced depreciation and revised sales promotion measures [7][10] - **Electricity Business**: Revenue declined by JPY 131.5 billion due to a decrease in electricity trading, impacting gross profit [8][11] - **Mobile Business**: Revenue increased by JPY 8.3 billion, driven by subscriber growth despite price reductions [8] - **Enterprise Segment**: Recurring revenue in Business Solutions grew steadily, contributing to a double-digit growth in segment income [12][28] - **Media & EC Segment**: Revenue increased by 3.4% to JPY 52.4 billion, with segment income up by JPY 38.2 billion (23.9%) due to cost optimization and strategic deconsolidation [13] - **Financial Segment**: PayPay's consolidated GMV grew by 22.2%, with standalone revenue up by 26.1%, though operating income remains negative [18] Market Performance - Smartphone subscribers increased by 1.4 million year-on-year, with a churn rate of 1.23% [17] - Broadband subscribers showed steady growth, while electricity subscribers continued to decline [17] - PayPay's user base grew by 6.4 million, with payment transactions increasing by 23.8% [52] Strategic Direction and Industry Competition - The company aims to achieve mid-term targets while investing in growth during FY 2024 and FY 2025, focusing on generative AI and other long-term growth areas [22][35] - CapEx for FY 2024 is projected at JPY 330 billion, with JPY 150 billion allocated for generative AI investments [35][74] - The company plans to maintain a dividend payout of JPY 86 per share, with a focus on achieving JPY 600 billion in free cash flow [36][51] Management Commentary on Operating Environment and Future Outlook - Management highlighted the positive impact of revised sales promotion measures and customer acquisition strategies on mobile revenue [25][27] - The company expects to achieve profitability in PayPay by FY 2025, with continuous growth in non-telecom GMV driving overall performance [18][52] - Management remains cautious about the impact of price reductions in the mobile segment but is optimistic about subscriber growth and ARPU improvements [17][81] Other Important Information - The company received several ESG-related awards and is focused on improving corporate governance by adding new external directors [19] - A stock split was announced to attract younger shareholders and enhance shareholder benefits [37] Q&A Session Summary Question: Generative AI Investment and R&D Costs - The company confirmed that JPY 30 billion is allocated for generative AI, with additional funds for other R&D initiatives [60][61] Question: Mobile Revenue and Acquisition Measures - Management expects mobile revenue to improve through subscriber growth and ARPU stabilization, with acquisition costs being absorbed by revenue increases [41][81] Question: Data Center Investments and Profitability - Investments in data centers, including Nara and Tomokomai, are part of the CapEx plan, with profitability expected in the long term [74][79] Question: CapEx Allocation and Dividend Policy - The company plans to maintain a balance between CapEx investments and dividend payouts, with JPY 330 billion allocated for telecommunications and generative AI [35][74] Question: PayPay's Path to Profitability - PayPay's EBITDA showed positive trends, and the company aims to achieve profitability in the new fiscal year [18][52]

= SoftBank | --- | --- | --- | --- | --- | |----------------------|-------|-------|-------|-------| | | | | | | | | | | | | | Earnings Results | | | | | | for the Fiscal Year | | | | | | Ended March 31, 2024 | | | | | May 9, 2024 SoftBank Corp. ©2024 SoftBank Corp. All Rights Reserved TSE code: 9434 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 assu ...

Financial Data and Key Metrics - Revenue for the nine months ended December 31, 2023, was ¥4.5116 trillion, up 4% year-on-year [8] - Operating income was ¥731.9 billion, with a 7% growth excluding the remeasurement gain from PayPay consolidation [8] - Net income increased by 30% to ¥406.7 billion [10] - Full-year forecasts were revised upward: net sales by ¥60 billion, operating income by ¥60 billion, and net income by ¥42 billion [11] Business Segment Performance - **Consumer Business**: Revenue declined by 0.3%, but mobile sales turned around in Q3, with a full-year revenue increase expected [14] - **Enterprise Business**: Revenue grew 5% to ¥576 billion, with a 15% increase in operating income to ¥124 billion [16] - **Media & EC Business**: Revenue increased 3% to ¥1.199 trillion, with operating income up 29% [17] - **Financial Business**: Revenue surged 95% due to PayPay consolidation, with operating income improving significantly [18] Market Performance - PayPay's consolidated revenue grew 28% to ¥155 billion, with consolidated EBITDA reaching ¥7.4 billion [18] - GMV of SB Payment Service increased 20% year-on-year to ¥5.8 trillion, with non-telecom sectors growing 27% [19] Strategic Direction and Industry Competition - The company is focusing on building next-generation social infrastructure, including AI data centers and low-latency, high-capacity networks [21][22] - Investments in generative AI are progressing, with a goal to reach 390 billion parameters by the end of the next fiscal year [25][26] - The company is expanding globally, with a recent investment in Cubic Telecom, a global IoT platform for connected vehicles [29][30] Management Commentary on Operating Environment and Future Outlook - Management expressed confidence in achieving full-year revenue growth one year ahead of schedule, particularly in mobile revenue [14][33] - The company is optimistic about the growth of AI-related products and services, which are driving steady growth in the Enterprise business [16] - Management highlighted the importance of ESG efforts, with the company being selected for the DJSI World index for two consecutive years [32] Other Important Information - The company is taking over WeWork Japan's business, assuming all liabilities to ensure business continuity [20] - The Noto Peninsula earthquake caused approximately ¥2 billion in damages, which has been factored into the revised forecasts [47] Q&A Session Summary Question: Impact of the Noto Peninsula earthquake on business performance - The earthquake caused around ¥2 billion in damages, which has been accounted for in the revised forecasts [47] - Restoration efforts are ongoing, but the timeline for full network restoration is uncertain due to road conditions and power restoration challenges [48] Question: Plans for PayPay's IPO - PayPay is expected to achieve full-year profitability, but no decision has been made regarding an IPO in 2024 [70][71] Question: Wage increase plans - The company is considering a 5.5% wage increase for approximately 24,000 employees, in line with government requests and rising goods prices [43][44] Question: Vision Pro and AR/VR strategy - Management believes Apple's Vision Pro could accelerate the VR/XR trend but is cautious about its high price point and consumer focus [41] Question: Expansion in the connected car sector - The company is investing in Cubic Telecom and other connected vehicle businesses, aiming to leverage global opportunities in next-generation traffic infrastructure [72][73] Question: Satellite and HAPS technology - The company is exploring both low-orbit satellite and HAPS technologies for mobile direct connections, with a focus on disaster recovery applications [75][76] Question: Standalone net income growth - The company expects a ¥100 billion increase in standalone net income, driven by contributions from subsidiaries and the utilization of loss carry-forwards [80][82]

〓 SoftBank Earnings Results for the Nine Months Ended December 31, 2023 February 7, 2024 SoftBank Corp. ©2024 SoftBank Corp. All Rights Reserved TSE code: 9434 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 historical facts, including, without limitation, our plans ...

SoftBank Corp. (OTCPK:SOBKY) Q2 2024 Results Conference Call November 8, 2023 4:00 AM ET Company Participants Junichi Miyakawa - President and CEO Kazuhiko Fujihara - Board Director, EVP and CFO Conference Call Participants Operator Thank you very much for waiting. We would like to begin SoftBank Corporation Earnings Results Presentation for Six Months Ended September 30, 2023. We would like to introduce today's attendees: SoftBank Corporation President and CEO, Miyakawa; Board Director, Executive Vice Pres ...

〓 SoftBank Earnings Results for the Three Months Ended June 30, 2023 August 4, 2023 SoftBank Corp. ©2023 SoftBank Corp. All Rights Reserved TSE code: 9434 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 historical facts, including, without limitation, our plans, for ...

SoftBank Corp. (OTCPK:SOBKY) Q1 2024 Earnings Conference Call August 4, 2023 5:00 AM ET Company Participants Kazuhiko Fujihara - Board Director, Executive Vice President and CFO Junichi Miyakawa - CEO Conference Call Participants Daisaku Masuno - Nomura Securities Satoru Kikuchi - SMBC Nikko Securities Mitsunobu Tsuruo - Citigroup Securities Operator Thank you very much for waiting. We would now begin SoftBank Corporation Earnings Results Presentation for the three months ended June 30, 2023. We would like ...

SoftBank Corp. (OTCPK:SOBKY) Q4 2023 Results Conference Call May 10, 2023 3:00 AM ET Company Participants Kazuhiko Fujihara - Board Director, Executive Vice President and CFO Takashi Naito - Finance and Accounting Division Vice President Osamu Akiyama - Strategic Finance Division Vice President Conference Call Participants Daisaku Masuno - Nomura Securities Yoshio Ando - Daiwa Securities Satoru Kikuchi - SMBC Nikko Securities Mitsunobu Tsuruo - Citigroup Securities Yusuke Okumura - Okasan Securities Operato ...

〓 SoftBank Earnings Results for the Six Months Ended September 30, 2022 November 4, 2022 SoftBank Corp. ©2022 SoftBank Corp. All Rights Reserved TSE code: 9434 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 historical facts, including, without limitation, our plans ...