Q&A at Earnings Results Briefing for Q3 FY2019

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Date Friday, February 7, 2020 4:00 pm - 5:30 pm
Speakers Ken Miyauchi (President & CEO)
Junichi Miyakawa (Representative Director & CTO)
Kazuhiko Fujihara (Board Director, Executive Vice President & CFO)
  1. *
    This is an excerpt of the Q&A session on SoftBank's earnings results and services.
  • What will be the 5G price plans?

    In the 5G era, I believe that offering unlimited plans that allow unlimited access to actual data is a must. It will become necessary to process large amounts of data in the future, with which the pricing structure should be in line. We are currently working out the details.

  • What is your thought about post 5G, or 6G? In addition, what kind of role will SoftBank Corp. (the “Company” or “we”) play in this area?

    Our advanced technology development team is working on 6G. The team has made progress through joint research with universities and the National Institute of Information and Communications Technology (NICT). We are proceeding well with experiments using millimeter waves and conducting communication tests using smartphones.

  • Regarding the impact from the amended Telecommunications Business Act by the Ministry of Internal Affairs and Communication (MIC), other carriers seem to have had large decline on mobile device sales. However, the impact on the Company seems to be small. What is the reason?

    Before the amended Telecommunications Business Act became effective and the consumption tax hike, there were rush sales in September. Similar to our competitors, we also experienced mobile device sales decline from October. However, thanks to the strong performance of the Y!mobile brand, the number of smartphone subscribers has grown steadily.

  • Please tell us about the immediate impact from the new coronavirus and your forecasts in the future.

    There is no problem in supplying equipment at the moment. However, if the current situation continues for a long time, there is possibility of a slight impact. The extent of the impact varies depending on when the pandemic converges.

  • How do you view the acquisition of shares of SoftBank Group Corp. (“SoftBank Group”) by Elliott Management Corporation?

    Today is the earnings results announcement of SoftBank Corp., and therefore I would like to refrain from commenting on this matter. Please address any questions related to Elliott Management Corporation to SoftBank Group when they hold their earnings results announcement next week.

  • Regarding the diversity of the Company, is there room for further improvement, such as increasing the number of female officers?

    At present, we have a female external director on our board. I believe that the Company has been organizing well in terms of corporate governance. We will further strengthen our governance in the future as we have formed a team for a project promoting SDGs.

  • Will you conduct share buybacks in the future?

    Our policy is to continuously pay out high dividends as shareholder returns. While the Company recognizes share buybacks as one of its options, I would appreciate your understanding that basically we intend to maintain high dividends while continuing to promote our growth strategy.

  • I would like to know what the relationship between PayPay and LINE Pay would be like in the future.

    I believe they will be able to generate significant synergy in the future, but as the business integration has not been approved by the government, we have not yet discussed details with LINE Corporation. Therefore, I cannot comment on this matter.

  • I heard that there were some misunderstandings between OYO Hotels Japan G.K. (“OYO”) and hotel owners. What is your view on this? How many hotels terminated OYO contracts? Will the Company keep the 25% shareholding of OYO, or will you consider selling the shares?

    The Company does not plan to sell the shares. There were various misunderstandings between the hotel owners and OYO at the initial stage. OYO has restarted discussions with owners and responding with sincerity. We cannot comment on the number of terminations, but as far as I know, it is not a significant number.

  • What are the reasons for the decline in ARPU before discount?

    The downtrend in ARPU before discount was mainly due to the effect of the unbundled plans, i.e. the plans that separate handset payments and services fees, and an increase in the composition ratio of Y!mobile subscribers.

  • What is your thinking about the linkage between T Point and PayPay?

    I think it would be better to coordinate both well. At present, the Company intends to use both parallelly. In the future it would be better to manage it in a way that generates synergy.

  • From the MIC, there is a discussion about converting the usage of 4G spectrum to 5G. What is your view on it? Your capex plan for 5G was smaller than that of other companies. Is this because you have anticipated this conversion?

    You are correct. The current 5G spectrum allocated is difficult to deploy due to interference with satellite, etc. We are planning 5G based on the view that we can convert the existing spectrum used for 4G to 5G network in the future. When the conversion is permitted, we intend to accelerate the deployment.

  • How will you respond in anticipation of the entry of Rakuten, Inc. (“Rakuten”)?

    I do not know what kind of plan Rakuten will come out with, but I believe that one of our three brands will be able to respond. Our multi-brand strategy with three brands is our strength, and we intend to respond to Rakuten entry flexibly.