Balancing investment
for transformation
with record-high profits
Accelerating preparations
for the next Mid-term Plan

The Company is confident that a “society that coexists with AI” will become a reality, where people can enjoy convenient and comfortable lives as AI is integrated into various products and services. On the other hand, the use of AI is expected to present a challenge in securing the vast amount of power needed for data processing. To address this, the Company is developing “distributed AI data centers” located throughout Japan, with the aim of achieving “Next-generation Social Infrastructure.”
In November 2023, we announced the construction of a large-scale AI data center in Tomakomai City, Hokkaido Prefecture, with a planned investment of ¥35 billion (after considering subsidies of up to ¥30 billion from Japan's Ministry of Economy, Trade and Industry). This data center will utilize renewable energy from within Hokkaido Prefecture to the maximum extent possible. Furthermore, in March 2025, we acquired the land and buildings of Sharp Corporation's Sakai Plant for approximately ¥100 billion, which is expected to ensure access to sufficient power supply. We also plan to invest ¥122 billion in AI computing infrastructure (including GPUs), net of ¥47 billion in subsidies for the Cloud Program from Japan's Ministry of Economy, Trade and Industry. Of this amount, ¥78 billion has already been invested in existing data centers in the Kanto region over the past two years.
The high demand for data centers and the fact that the Company has already secured power supply are major strengths. Leveraging this advantage, we expect to generate revenue that at least exceeds our cost of capital by leasing our AI computing infrastructure. We will also pursue the upside of providing high-value-added services using our in-house developed Large Language Model (LLM) and generative AI, thereby maximizing the return on invested capital.
We are proud to be a front-runner in AI in Japan. In recent years, as symbolized by the concepts of “sovereign AI” and “sovereign cloud,” AI is becoming a social foundation closely tied to national security and a country's competitiveness. We intend to use collaboration and support from the government to expand our opportunities for larger challenges and growth.

Since its listing, the Company has consistently pursued a policy of “balancing long-term growth with high levels of shareholder returns.” Under this policy, the basic design of our capital allocation is to generate a high level of primary free cash flow^*6 mainly from the telecommunications business each year, and to ensure a surplus of tens of billions of yen after deducting lease fees for base stations and dividends paid from cash flows from financing activities, to be used for additional growth investments and improving our financial position.
On the other hand, AI-related investments are long-term initiatives aimed at building Next-generation Social Infrastructure. We plan to fund these initiatives with capital-like financing, such as Bond-Type Class Shares and long-term debt such as long-term loans. For this reason, in calculating primary free cash flow^*6, we exclude these long-term growth investments from cash flows from investing activities. To date, the Company has issued Bond-Type Class Shares twice, raising a total of ¥320 billion. Of this amount, approximately ¥122 billion (after deducting subsidies) was allocated to building out AI computing infrastructure, and approximately ¥100 billion was used to acquire the land and buildings of Sharp Corporation's Sakai Plant for the construction of an AI data center. The remaining approximately ¥100 billion is secured as funds for future growth investments.

In July 2025, the Company issued its first foreign currencydenominated ordinary notes (foreign notes). Prior to this, we received credit ratings of “BBB” from S&P and “BBB+” from Fitch, both with a “Stable” outlook. Raising funds through foreign notes is very effective for securing long-term funds in a stable and large-scale manner. By having funding options not limited to Japan, we can implement flexible financial strategies that take into account foreign exchange and global interest rate trends, which also leads to a reduction in funding costs and a leveling out of repayment schedules.
Furthermore, we are maintaining a structure that allows for additional issuances of Bond-Type Class Shares in the future. We believe this will further strengthen our financial base as one of the diverse funding options for future growth investments. Meanwhile, addressing rising interest rates is also a crucial challenge. About 90% of our interest-bearing debt is raised at a fixed rate, but since a certain amount is refinanced each year, the impact of interest rates is gradually becoming apparent. In this environment, it is important to optimize cash on hand throughout the Group and to streamline intra-Group financial transactions to suppress the increase in interest expenses.

Since its listing, the Company has consistently adopted the basic policy of “balancing long-term growth with high levels of shareholder returns.” We believe that for our shareholders, “growth” is reflected in the stock price, and “returns” are in the form of dividends. Therefore, we always manage the Company with Total Shareholder Return (TSR) in mind, which is the combination of stock price fluctuations and dividends. TSR is also incorporated into the indicators for the medium-term performance-linked compensation of our directors.
Against the backdrop of our strong recent performance, we recognize that our shareholders' expectations for increased dividends are rising. At the same time, the Company is in a phase with abundant growth opportunities. Therefore, if our performance further exceeds expectations after executing upfront investments, we will consider options such as share repurchases and dividend increases.

I was appointed CFO in 2004, the year after the Company incurred an operating loss of approximately ¥100 billion in the broadband business. In the more than 20 years since then, we have evolved into a company that can project operating income of ¥1 trillion. This reflects our track record of identifying growth areas and boldly taking on challenges with an eye toward the future.
SoftBank has never rested on past successes but has always embraced change. We have consistently run at the forefront of the times, based on the belief that “it is not the strongest or the most intelligent who will survive, but those who can adapt to change.”
Now, with AI in its early stages, taking on this wave of change is a major opportunity for the Company to evolve. We will continue to take on challenges so that we can look back in 10 years with confidence and say, “that was the right decision.” As CFO, I will serve as the Company's compass, pursuing a balance between offense (investing for future leaps) and defense (securing financial soundness). At the same time, I will push forward discussions toward formulating the next Mid-term Plan. I am confident that this approach will lead to the sustainable improvement of corporate value in this age of change and meet the expectations of our shareholders and investors.